Resolution 2000-35
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RESOLUTION NO. 2000-35
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
FOR IMPLEMENTATION OF INTERNAL REVENUE CODE
4I4(H)(2) FOR THE DEPARTMENT HEAD GROUP
WHEREAS, the City of Gilroy has the authority to implement the provisions of section
4I4(h)(2) of the Internal Revenue Code (IRe); and
WHEREAS, the Board of Administration of the Public Employees' Retirement System
adopted its resolution regarding Section 414(h)(2) IRC on September 18, 1985; and
WHEREAS, the Internal Revenue Service has stated in December 1985, that the
implementation of the provisions of Section 4 I4(h)(2) IRC pursuant to the Resolution of the
Board of Administration would satisfy the legal requirements of section 4I4(h)(2) IRC; and
WHEREAS, the City of Gilroy has determined that even though the implementation of
the provisions of section 4 I4(h)(2) IRC is not required by law, the tax benefit offered by section
4I4(h)(2) IRC should be provide to certain employees who are members of the 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 Public Employees' Retirement System on behalf of certain
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 certain 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 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 Public
Employees' Retirement System.
III. 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.
RESOLUTION NO. 2000-35
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IV. 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.
V. 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'
Retirement Law (California Government Code sections 20000, et seq.).
VI. 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 contributions are treated by the Public Employees'
Retirement System.
PASSED AND ADOPTED this 5th day of June, 2000 by the following vote:
AYES:
COUNCILMEMBERS: G. ARELLANO, P. ARELLANO, MORALES,
PINHEIRO, SUDOL, VELASCO, SPRINGER
COUNCILMEMBERS: NONE
NOES:
ABSENT: COUNCILMEMBERS: NONE
APPROVED:
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Thomas W. Springer, M
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Rhonda Pellin, City Clerk
RESOLUTION NO. 2000-35
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I, RHONDAPELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached
Resolution No. 2000-35 is an original resolution, duly adopted by the Council of the City of
Gilroy at a regular meeting of said Council held on the 5th day ofJune, 2000, 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 June, 2000.
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City Clerk of the eity of Gilroy
(Seal)