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Resolution 2010-35 1 RESOLUTION NO. 2010-35 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY TO TAX DEFER MEMBER PAID CONTRIBUTIONS - IRC 414(h)(2) FOR IAFF, LOCAL 2805 EMPLOYEES WHEREAS, the governing body of the City of Gilroy has the authority to implement the provisions of Section 414(h)(2) of the Internal Revenue Code (IRC); and WHEREAS, the City of Gilroy has determined that even though the implementation of the provisions of Section 414(h)(2) IRC is not required by law, the tax benefit offered by section 414(h)(2) IRC should be provided to IAFF, Local 2805 employees who are members of the California Public Employees Retirement System. NOW, THEREFORE, BE IT RESOLVED: 1. That the City of Gilroy will implement the provisions of section 414(h)(2) Internal Revenue Code by making employee contributions pursuant to California Government Code Section 20691 to the California Public Employees Retirement System on behalf of IAFF, Local 2805 employees who are members of the California Public Employees Retirement System. "Employee contributions" shall mean those contributions to the Public Employees' Retirement System which are deducted from the salary of employees and are credited to individual employee's accounts pursuant to California Government Code Section 20691. II. That the contributions made by the City of Gilroy to the California Public Employees' Retirement System, although designated as employee contributions, are being paid by the City of Gilroy in lieu of contributions by the employees who are members of the California Public Employees' Retirement System. III. That the employees shall not have the option of choosing to receive the contributed amounts directly instead of having them paid by the City of Gilroy to the California Public Employees' Retirement System. RESOLUTION NO. 2010-35 2 IV. That the City of Gilroy shall pay to the California Public Employees' Retirement System the contributions designated as employee contributions from the same source of funds as used in paying salary. V. That the amount ofthe contributions designated as employee contributions and paid by the City of Gilroy to the California Public Employees' Retirement System on behalf of an employee shall be the entire contribution required of the employee by the California Public Employees' Law (California Government Code Sections 20000, et seq.). VI. That the contributions designated as employee contributions made by the City of Gilroy to the California Public Employees' Retirement System shall be treated for all purposes, other than taxation, in the same way that member contributions are treated by the California Public Employees' Retirement System. VII. This resolution will be implemented with the July, 2010 payroll cycle for IAFF, Local 2805 employees. PASSED AND ADOPTED this 19th day of July, 2010, by the following vote: AYES: COUNCILMEMBERS: and PINHEIRO COUNCILMEMBERS: COUNCILMEMBERS: BRACCO, DILLON, TUCKER, WOODWARD NOES: ABSENT: GARTMAN ARELLANO APPROVED: z~ RESOLUTION NO. 2010-35 3 Return Address: City of Gilroy Human Resources Department 7351 Rosanna Street Gilroy, CA 95020 FOR CALPERS USE ONLY: Resolution to Tax Defer Member Paid Contributions - IRC 414(h)(2) Approved by: Title: RESOLUTION NO. 2010-35 I, SHA WNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2010-35 is an original resolution, or true and correct copy of a city resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 19th day of July, 2010, at which meeting a quorum was present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this 23rd day of July, 2010. / Shawna Freels, City Clerk of the City of Gilroy (Seal)