Resolution 1991-75
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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.
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RESOLUTION NO. 91 - 75
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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
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Mayor
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pj, Ci ty Clerk
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RESOLUTION NO. 91 - 75
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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)