Resolution 1987-68
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RESOLUTION NO. 87 - 68
RESOLUTION OF THE COUNCIL OF THE CITY OF GILROY IMPLEMENTING THE PROVISIONS OF
SECTION 414(h)(2) OF THE INTERNAL REVENUE CODE RELATING TO PERS CONTRIBUTIONS.
WHEREASt the City Council of the City of Gilroy has the authority to
implement the provisions of Section 414 (h) (2) of the Internal Revenue Code (IRC);
and
WHEREASt the Board of Administration of the Public Employees' Retirement
System adopted its resolution re: Section 414 (h) (2) IRC on September 18t 1985;
and
WHEREASt the Internal Revenue Service has stat4ed on December 6t 1985t
that the implementation of the provisins of section 414 (h) (2) IRC pursuant to the
Resolution of the Board of Administration would satisfy the legal requirements of
Section 414 (h) (2) IRC; and
WHEREASt the City Council of the City of Gilroy has determined that even
though the implementation of the provisions of Section 414 (h) (2) IRC is not
required by lawt the tax benefit offered by section 414 (h) (2) IRC should be
provided to it employees who are members of the Public Employees' Retirement
System.
NOWt THEREFOREt BE IT RESOLVED that the City Council of 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
20615 to the Public Employees' Retirement System on behalf of its employees who are
members of the 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 20615; and
That the contributions made by the City Council of the City of Gilroy to
the Public Employees' Retirement Systemt although designated as employee
contributionst are being paid by the City of Gilroy in lieu of contributions by the
employees who are members of the Public Employees' Retirement System; and
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RESOLUTION NO. 87 - 68
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That 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 Public Employees' Retirement System; and
That the City of Gilroy shall pay to the Public Employees' Retirement
System the contributions designated as employee contributions from the same source
of funds as used in paying salary; and
That the amount of the contributions designated as employee
contributions and paid by the City of Gilroy to the Public Employees' Retirement
System on behalf of an employee shall be the entire contribution required of the
employee by the Public Employees' Law (California Government Code Sections 20000,
et seq.); and
That the contributions designated as employee contributions made by the
City of Gilroy to the Public Employees' Retirement System shall be treated for all
purposes, other than taxation, in the same way that member contributions are
treated by the Public Employees' Retirement System.
PASSED AND ADOPTED this 21st day of September, 1987, by the following
vote:
AYES: COUNCILMEMBERS: ALBERT, GAGE, KLOECKER, PALMERLEE, VALDEZ and
MUSSALLEM.
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS : Rffi RAN .
APPROVED:
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Mayor Protempore
ATTEST:
d2U~~dt~
/ Ci ty lerk
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RESOLUTION NO. 87 - 68
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I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do
hereby certify that the attached Resolution No. 87-68
is an original
resolution, duly adopted by the Council of the City of Gilroy at a regular
meeting of said Council held on the
21st
day of September
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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 22nd day of September
(Seal)