HomeMy WebLinkAboutReso 199-05 ServiceCreditPurcha
RESOLUTION NO. 199· 05
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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ADOPTING AN EMPWYER PICKUP RESOLUTION
PRE-TAX PAYROLL DEDUCTION PLAN FOR
SERVICE CREDIT PURCHASES (CONTRIBUTION CODE 14)
WHEREAS, the Board of Administration of the CaJifornia Public Employees' Retirement System
(CalPERS) at the April 1996 meeting approved a pre-tax payroll deduction plan for service credit purchases
under the Tnternal Revenue Code (TRe) section 414(hX2); and
WHEREAS, the City of Dublin has the authority to implement the provisions ofTRC 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 CalPERS; and
WHEREAS, the City of Dublin elects to participate in the pre-tax payroll deduction plan for an
employees in the following CalPERS coverage groups:
Miscellaneous Group
NOW, THEREFORE, BE IT RESOLVED:
1. That the City of Dublin win implement the provisions of TRC section 4l4(hX2) by making employee
contributions for service credit purchases pursuant to the California State Government Code on behalf of its
employees who are members ofCalPERS 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.
IT. That the contributions made by the City of Dublin to CalPERS, although designated as employee
contributions, are being paid by the City of Dublin in lieu of contributions by the employees who are
members of CalPERS.
ITL 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 Dublin to CalPERS.
N. That the City of Dublin 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 payron deduction plan cannot be any earlier than
the date the completed resolution is received and approved in CalPERS.
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VI. That the governing body of the City of Dublin shall participate in and adhere to requirements and restrictions
of the pre-tax payron deduction plan by reporting pre-tax payroll deductions when authorized by CalPERS
for those employees of the above stated Coverage Groups who have elected to participate in the plan.
PASSED, APPROVED AND ADOPTED this ISth day of October, 2005.
A YES: Councilmembers Hildenbrand, McCormick, Oravetz and Zika, and Mayor Lockhart
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
A,\~~~, .~
Ci Clerk
Reso No. 199-05, adopted lO/lS/05, Ttem # 4.2
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