2005 RES R-110-05 - Laserfiche WebLink

Browse Search

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. R-110-05 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 Colton 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 Colton elects to participate in the pre-tax payroll deduction plan for all employees in the following CaIPERS employee groups or classifications: 7003 Miscellaneous 74001 Fire 75001 Police NOW, THEREFORE, BE IT RESOLVED: I. That the City of Colton 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 CaIPERS 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 CaIPERS 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 Colton to CaIPERS, although designated as employee contributions, are being paid by the City of Colton in lieu of contributions by the employees who are members of CaIPERS. 09/07/05 1 Employer Pickup Resolution CaIPERS