Resolution 2004- 50
RESOLUTION NO. 2004-50
Employer code: 0733
EMPLOYER PICKUP RESOLUTION
PRE-TAX PAYROLL DEDUCTION PLAN
FOR SERVICE CREDIT PURCHASES
(CONTRIBUTION CODE 14)
WHEREAS, the Board of Administration of the California Public Employees' Retirement
System (CaIPERS) at the April 1996 meeting approved a pre-tax payroll deduction plan
for service credit purchases under Internal Revenue Code (IRC) section 414(h)(2); and
WHEREAS, the City of Gilroy has the authority to implement the provisions of IRC
section 414(h)(2) and has determined that even though implementation is not required
by law, the tax benefit offered by this section should be provided to those employees
who are members of CaIPERS; and
WHEREAS, the City of Gilroy elects to participate in the pre-tax payroll deduction plan
for all employees in the following CalPERS coverage group(s):
All Miscellaneous
All Safety
NOW, THEREFORE, BE IT RESOLVED:
I. That the City of Gilroy will implement the provisions of IRC section 414(h)(2) by
making employee contributions for service credit purchases pursuant to the California
State Government Code on behalf of its employees who are members of CalPERS and
who have made a binding irrevocable election to participate in the pre-tax payroll
deduction plan. "Employee contributions" shall mean those contributions reported to
CalPERS which are deducted from the salary of employees and are credited to
individual employee accounts for service credit purchases, thereby resulting in tax
deferral of employee contributions.
II. That the contributions made by the City of Gilroy to CalPERS, although designated
as employee contributions, are being paid by the City of Gilroy in lieu of contributions by
the employees who are members of CaIPERS.
III. That the 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 CaIPERS.
RESOLUTION NO. 2004-50
-1-
IV. That the City of Gilroy shall pay to CalPERS the contributions designated as
employee contributions from the same source of funds as used in paying salary, thereby
resulting in tax deferral of employee contributions.
V. That the effective date for commencement of the pre-tax payroll deduction plan
cannot be any earlier than July 1, 1996, or the date the completed resolution is received
and approved in CaIPERS, whichever is later.
VI. That the governing body of the City of Gilroy shall participate in and adhere to
requirements and restrictions of the pre-tax payroll deduction plan by reporting pre-tax
payroll deductions when authorized by CalPERS for those employees of the above
stated Coverage Group(s) who have elected to participate in this plan.
PASSED AND ADOPTED this 7th day of June, 2004 by the following vote:
AYES:
COUNCILMEMBERS: CORREA, DILLON, GARTMAN, MORALES,
VALIQUETTE,VELASCO,andP~IRO
NOES:
COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
ATTEST:
J ~
~~'" ,
.... 'Wwe;J~~'
Rhonda Pellin, city' 'Ierk
APPROVED:
~
eft Pmherro, Mayor
RETURN ADDRESS:
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
********************************************************************************************
FOR CALPERS USE ONLY
Pre-tax Pa roll Deduction Plan Effective Date:
RESOLUTION NO. 2004-50
-2-
I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certifY that the attached
Resolution No. 2004-50 is an original resolution, or true and correct copy of a city resolution,
duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the
7th day of June, 2004, 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 10th day of June, 2004.
(Seal)