HomeMy WebLinkAboutReso 137-05 PreTaxDeductions
RESOLUTION NO. 137 ~ 05
A RESOLUTION OF mE CITY COUNCIL
OF THE CITY OF DUBLIN
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ADOPTING AN EMPLOYER PICK-UP RESOLUTION FOR
PRE-TAX PAYROLL DEDUCTIONS
WHEREAS, the City of Dublin has the authority to implement the provisions of section 414(hX2)
ofthe Internal Revenue Code (IRC); and
WHEREAS, the Board of Administration of the Public Employees' Retirement System adopted its
resolution re 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 ofthe Board of Administration would
satisfy the legal requirements of section 414(h)(2) IRC; and
WHEREAS, the City of Dublin 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 its employees who are members of the Public Employees' Retirement System:
NOW, TIIEREFORE, BE IT RESOLVED:
I. That the City of Dublin 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 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
ITom the salary of employees and are credited to individual employee's accounts pursuant to
California Government Code section 20691.
2. 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.
3. That 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 the Public Employees'
Retirement System.
4. 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.
5. 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 Employees' Retirement
Law (California Government Code sections 20000, ~->-
6. 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.
7. That the effective date of the Pre-Tax Payroll Deduction Plan is August 20,2005.
PASSED, APPROVED AND ADOPTED this 21st day of June, 2005.
AYES: Councilmembers Hildenbrand, McCormick, Oravetz, Zika and Mayor Lockhart
NOES: None
ABSENT: None
ATTEST:
Mayor
ABSTAIN: None
K'/G/6.21.{)5/reso L 5 PERS IRC414h2 (Item 6.7)