Resolution 2010-46
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RESOLUTION NO. 2010-46
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY TO TAX DEFER MEMBER PAID CONTRIBUTIONS-
IRC 414(h) (2) FOR GILROY POLICE OFFICERS ASSOCIATION
EMPLOYEES
WHEREAS, the governing body of the City of Gilroy has the authority to implement the
provisions of Section 414(h)(2) of the Internal Revenue Code (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 provided to Gilroy Police Officers Association employees who are members of the
California 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 California Public Employees Retirement System on behalf of Gilroy Police Officers
Association employees who are members of the California Public Employees Retirement
System. "Employee contributions" shall mean those contributions to the Public Employees'
Retirement System which are deducted from the salary of 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 California 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 California Public
Employees' Retirement System.
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 the California Public Employees'
Retirement System.
RESOLUTION NO. 2010-46
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IV. That the City of Gilroy shall pay to the California 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 California Public Employees' Retirement System on behalf of an employee shall
be the entire contribution required of the employee by the California Public Employees' Law
(California Government Code Sections 20000, et seq.).
VI. That the contributions designated as employee contributions made by the City of Gilroy to the
California Public Employees' Retirement System shall be treated for all purposes, other than
taxation, in the same way that member contributions are treated by the California Public
Employees' Retirement System.
VII. This resolution will be implemented with the August, 2010 payroll cycle for Gilroy Police
Officers Association employees.
PASSED AND ADOPTED at a Special Meeting of the Gilroy City Council this 26th day of
August, 2010, by the following vote:
AYES:
COUNCILMEMBERS:
ARELLANO, BRACCO, DILLON, GARTMAN,
TUCKER, WOODWARD and PINHEIRO
NOES:
COUNCILMEMBERS:
NONE
ABSENT:
COUNCILMEMBERS:
NONE
APPROVED
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Dion Bracco, Mayor Pro Tempore
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RESOLUTION NO. 2010-46
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Return Address:
City of Gilroy
Human Resources Department
7351 Rosanna Street
Gilroy, CA 95020
FOR CALPERS USE ONLY:
Resolution to Tax Defer Member Paid Contributions - IRC 414(h)(2)
Approved by:
Title:
RESOLUTION NO. 2010-46
I, SHA WNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2010-46 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 special meeting of said Council
held on the 26th day of August, 2010, 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 26th day of August, 2010.
hawna Freels, C
City Clerk of the City of Gilroy
(Seal)