Resolution 2001-71
RESOLUTION NO, 2001-71
RESOLUTION FOR IMPLEMENTATION OF INTERNAL
REVENUE CODE 414(h)(2) FOR ALL AFSCME, LOCAL 101
AND CONFIDENTIAL 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 of the 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 2001-71
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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, et sea.).
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.
VII. This resolution will be implemented with the October, 200 I payroll cycle.
PASSED AND ADOPTED this 15th day of October, 2001 by the following vote:
AYES:
COUNCILMEMBERS: G. ARELLANO, P. ARELLANO, MORALES,
PINHEIRO, SUDOL, VELASCO, SPRINGER
NOES:
COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
APPROVED:
-~;r;~ ~
Thomas W. Spring , ayor
~~.
Rhonda Pellin, City Clerk
RESOLUTION NO. 2001-71
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(Seal)
I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certity that the attached
Resolution No. 2001-71 is an original resolution, duly adopted by the Council of the City of
Gilroy at a regular meeting of said Council held on the 15th day of October, 2001, 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 23rd day of October, 2001.