Resolution 2001-62
RESOLUTION NO. 2001-62
RESOLUTION FOR IMPLEMENTATION OF INTERNAL REVENUE
CODE 414(h)(2) FOR ALL EXEMPT NON-SAFETY EMPLOYEES
WHEREAS, the City of Gilroy has the authority to implement the provisions of section
414(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 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
WHEREAS, the City of Gilroy has determined that even though the implementation of
the provisions of section 414(h)(2) IRC is not required by law, the tax benefit offered by section
414(h)(2) IRC should be provide to certain employees who are members ofthe Public
Employees Retirement System:
NOW, THEREFORE, BE IT RESOLVED:
I. 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,
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.
RESOLUTION NO. 2001-62
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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, ~.).
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 17th day of September, 2001 by the following vote:
AYES:
COUNCILMEMBERS: G. ARELLANO, P ARELLANO, MORALES,
PINHEIRO, SUDOL, VELASCO, SPRINGER
COUNCILMEMBERS: NONE
NOES:
ABSENT: COUNCILMEMBERS: NONE
APPROVED:
ATTEST:
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KirtdtZ. '--~~~
Rhon a Pellin, City lerk
RESOLUTION NO. 2001-62
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City of Gilroy
Exempt Salary Schedule
(Effective July 1, 2001 -Implementing IRC 414h2)
JOB MONTHLY MONTHLY ANNUAL ANNUAL
CODE TITLE MINIMUM MAXIMUM MINIMUM MAXIMUM
300 Mayor $987 $11,845
301 Council Members $658 $7,897
(Effective July 1, 2001 per Ord, 99-01)
(5.8% CPI)
Employees of the City Council
001 City Administrator $11,494 $137,933
002 City Clerk $5,289 $6,917 $63,467 $82,998
Management/Executive Group
100 Community Development Director $7,877 $10,040 $94,525 $120,477
103 Administrative Services Director
104 Community Services Director
101 Police Chief" $7,360 $9,382 $88,320 $112,584
102 Fire Chief"
113 Finance Director $6,809 $8,850 $81,714 $106,200
107 City Engineer
108 Human Resources Directorl
Risk Manager
112 Deputy Director of Community Development
118 Planning Division Manager
109 Assistant Police Chief" $6,364 $8,271 $76,368 $99,252
105 Fire Division Chief" $5,876 $7,641 $70,512 $91,692
110 Police Captain"
115 Police Support Services Manager $6,006 $7,807 $72,071 $93,681
116 Senior Sanitary Engineer
117 Senior Civil Engineer
114 Operations Services Manager $5,463 $7,102 $65,561 $85,219
120 Chief Building Official
121 Fire Marshal (Non-Safety)
111 Facilities and Parks Project Manager $5,155 $6,700 $61,863 $80,404
Per Council resolution, non-safety exempt empioyees pay 7% contribution to PERS under IRC 414(h)(2).
City pays 9% employee PERS contribution for Safety positions marked with a ". Also these positions
do not participate in 414h2 as the 9% employee contribution is reported as special compensation at
the time of retirement.
Monthly figures are rounded to the nearest $1,00
Rev. 9101
City of Gilroy
Exempt Salary Schedule (Cont'd)
(Effective July 1,2001 - Implementing IRC 414h2)
JOB MONTHLY MONTHLY ANNUAL ANNUAL
CODE · TITLE MINIMUM MAXIMUM MINIMUM MAXIMUM
Professional
201 Accounting Supervisor $4,963 $6,205 $59,552 $74,459
202 Fleet and Facilities Services Mgr
203 Environmental Program Coordinator $4,420 $5,747 $53,042 $68,964
204 Information Systems Manager
205 Public Information Coordinator
206 Human Resources Analyst
207 HCD Grant Coordinator
208 Police Crime Analyst
209 Revenue Officer
210 Financial Analyst
211 Financial Analyst Trainee (90% of Financial Analyst Range)
230 Grant Management Specialist $3,978 $4,835 $47,739 $58.024
Per Council resolution. non-safety exempt employees pay 7% contribution to PERS under IRC 414(h)(2)
City pays 9% employee PERS contribution for Safety positions marked with a ..
Monthly figures are rounded to the nearest $1.00
Rev. 9/01
I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached
Resolution No. 2001-62 is an original resolution, duly adopted by the Council of the City of
Gilroy at a regular meeting of said Council held on the 17th day of September, 2001, at which
meeting a quorum was present.
IN WITNESS WHEREOF, 1 have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 27th day of September, 2001.
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~. . cd.t y~--/ ~0-..
City lerk of the City of Gilroy
(Seal)