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HomeMy WebLinkAboutReso 016-86 IRS CodeRESOLUTION NO. 16 - 86 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN IMPLEMENTING SECTION 414 (h)(2) OF THE INTERNAL REVENUE CODE WHEREAS, the City Council has the authoritM to implement the provisions of section ~l~(h)(2) of the Internal Revenue Code (IRC); and WHEREAS, the Board of Administration of Public Employees' Retirement System adopted its resolution re section ~l~(h)(2) on September 18, 1985; and WHEREAS, the Internal Revenue Service has stated on December 6, 1985, that the implementation of the provisions of section ~l~(h)(2) IRC pursuant to the Resolution of the Board of Administration would satisfy the legal requ±r~ments of section ~l~(h)(2) IRC; and WHEREAS, the City Council has determined that even though the implementation of the provisions of section ~l~(h)(2) IRC is not required by law, the tax benefit offered by section ~l~(h)(2) IRC should be provided to its employees who are members of the Public Employees' Retirement System. NOW, THEREFORE, BE IT RESOLVED: I. That the City of Dublin will implement the provisions of section ~l~(h)(2) Internal Revenue Code by making employee contributions pursuant to California Government Code section 20615 to the Public Employees' Retirement System on behalf of its 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 employees and are credited to individual employee's accounts pursuant to California Government Code section 20615. II. That the contributions made by the City of Dublin to the Public Employees' Retirement System although designated as employee contributions are being paid by the City of Dublin in lieu of contributions by the employees who are members of the Public Employees' Retirement System. III. That employees will not have the option of choosing to receive the contributed amounts directly instead of having them paid by the City of Dublin to the Public Employees' Retirement System. IV. That the City of Dublin 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. V. That the amount of the contributions designated as employee contributions and paid by the City of Dublin to the Public Employees' Retirement System on behalf of an employee shall be the entire contribution required of the employee by the Public Employee's Retirement Law (California Government Code sections 20000, et, seq.). VI. That the contributions designated as employee contributions made by the City of Dublin to the Public Employees' Retirement System shall be treated for all purposes, other than taxation, in the same way that member contributions are treated by the Public Employees' Retirement System. PASSED, APPROVED AND ADOPTED this 10th day of February, 1986. AYES: Councilmembers Hegarty, Jeffery, Moffatt, Vonheeder and Mayor Snyder NOES: None ABSENT: None