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Resolution 1991-75 "" ~,'3 . . RESOLUTION NO. 91 - 75 A RESOLUTION OF THE COUNCIL OF THE CITY GILROY CALIFORNIA TO ESTABLISH 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 tbe City of Gilroy and it's 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, tbe 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 may elect, as a an existing member of tbe Public Employee Retirement System (PERS) to include PST employees for membersbip in this Defined Benefit plan; and WHEREAS, tbe City may elect to establish as part of its retirement system for its PST employees a Defined Contribution plan option under Internal Revenue Code sections 457 and 401(a); and WHEREAS, tbe City bas in place a fully implemented 457 Deferred Compensation Plan witb a contract investment consultant and the International City Management Association (ICMA); and WHEREAS, tbe City has previosly approved its participation in a Public Agency Retirement System (PARS) to include provision for IRC section 401(a) coverage for its PST employees; and WHEREAS, tbe City recognizes tbat the proposed retirement system plan alternative for its PST employees includes coverage under both "Defined Benefit Plans" and "Defined Contribution Plans" as defined and allowed under existing Internal Revenue Code sections. -1- RESOLUTION NO. 91 - 75 . . NOW, THEREFORE, the Council of the City of Gilroy, Califolnia does hereby RESOLVE, DETERMINE, AND ORDER as follows: Section 1. Adoption of a Retirement system for it's PST employees to include participation, at the option of the City, in one or all of the following defined benefit and contribution plans effective January 1, 1992 : PERS, PARS, City of Gilroy's 457 Deferred Compensation; and Section 2. The Director of Human Resources or his delegate will ,continue as the Plan Administrator for PERS and PARS; and Section 3. The Finance Director or his delegate will continue as the Plan Administrator for the City's 457 Deferred Compensation; and Section 4. The Plan Administrators are hereby authorized to execute all contractual documents and take other necessary actions to maintain compliance with Section 11332 of the Social Security Act and all relevant regulations isued or as may be issued. PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting of said Council, held on the 16th day of December 1991, by the following vote of said Council: AYES: COUNCILMEMBERS: GILROY, HALE, KLOECKER, ROWLISON, VALDEZ and GAGE. NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBER: NELSON ~~J Mayor . A~~~~~ . pj, Ci ty Clerk -2- RESOLUTION NO. 91 - 75 . . I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 91-75 is an original resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 20th day of December ,19~~, 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 20th day of December 19 91. (Seal)