Resolution 1991-35
.
.
RESOLUTION NO. 91 - 35
A RESOLUTION OF THE COUNCIL OF THE CITY GILROY
CALIFORNIA TO SHOW INTENT TO PROVIDE AN ELIGIBLE
RETIREMENT SYSTEM FOR ITS PART-TIME, SEASONAL,
AND TEMPORARY (PST) EMPLOYEES IN ORDER
TO MEET THE REQUIREMENTS OF THE
O~rnIBUS BUDGET RECONCILIATION ACT (OBRA) OF 1990
WHEREAS, it is determined to be in the best interest of the City of Gilroy and
its employees to provide a qualified retirement system to all part-time, seasonal,
and temporary employees, thereby meeting the requirements of Section 11332 of the
Social Security Act; and
WHEREAS, the 1990 OBRA allows for "Defined Benefit and Contribution Retirement
Plans" under existing Internal Revenue Code sections as an alternative to mandatory
Social Security coverage; and
WHEREAS, the City elects to exercise its intent to implement an alternative
retirement system for its PST employees under Internal Revenue Code sections 457
and 401(a); and
WHEREAS, the City recognizes that this proposed retirement system alternative
does qualify as a "Defined Contribution Plan"; and
WHEREAS, the City has in place a fully implemented 457 Deferred Compensation
Plan; and
WHEREAS, the City is considering its participation in a Public Agency
Retirement System to include provision for IRC section 40l(a) coverage.
NOW, THEREFORE, the Council of the City of Gilroy, California does hereby
RESOLVE, DETERMINE, AND ORDER as follows:
The City Administrator has designated Finance and Personnel staff to
investigate and recommend an action to establish a retirement system plan for the
City's PST employees by designating the City's existing 457 Plan and or
establishing a 401(a) Plan to meet the requirements of OBRA 1990.
-1-
RESOLUTION NO. 91-35
.
.
PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular
meeting of said Council, held on the 17th day of June, 1991, by the following vote
of said Council:
AYES:
COUNCILMEMBERS: HALE, KLOECKER, MUSSALLEM, VALDEZ and GAGE.
NOES:
CO UNCILMEMBERS: None
ABSENT:
COUNCILMEMBERS: NELSON and HUGHAN.
APPROVED:
~l;r~
ATA~~ ~
. f2Jl - bcJ~
I - _ City Clerk --~
-2-
RESOLUTION NO. 91 - 35
.
.
I, SUSANNE E. STEINMETZ, City Clerk of th e City of Gilroy, do
hereby certify that the attached Resolution No. 91-35 is an original
resol ution , duly adopted by the Council of the City of Gilroy at a special
meeting of said Council held on the 17th day of June 1991 ,
---
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
19th day of
June
19 91.
(Seal)