HomeMy WebLinkAboutReso - CC - 064-2008RESOLUTION NO. 64-2008
Return to CaIPERS - Unit 830
Employer code: 0018
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 Burlingame {Employer) 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 Burlingame (Employer) elects to participate in the pre-tax payroll deduction plan
for all employees in the following CaIPERS Coverage Group(s):
(Membership Coverage Group(s))
All Miscellaneous Employees and All Safety Employees
NOW, THEREFORE, BE IT RESOLVED:
That the City of Burlingame (Employer) 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 Burlingame {Employer) to CaIPERS, although designated
as employee contributions, are being paid by the City of Burlingame (Employer) in lieu of contributions
by the employees who are members of CaIPERS.
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 Burlingame (Employer) to CalPERS.
IV. That the City of Burlingame {Employer) shall pay to CaIPERS 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 payroll deduction plan cannot be any earlier than
the date the completed resolution is received and approved by CaIPERS.
That the governing body of the City of Burlingame {Employer) shall participate in and adhere to
requirements and restrictions of the pre-tax payroll deduction plan by reporting pre-tax payroll deductions
when authorized by CaIPERS for those employees of the above stated Coverage Group(s) who have
elected to participate in this plan.
PASSED AND ADOPTED by the governing body of the City of Burlingame (Employer)
this 21st day of July, 2008. {year)
AYES: COUNCILNEMB ERS: RAYLOCE, DEAL, EEIGHRAN, NAGEL, O'MAHONY
NOES: CODNCILMEMBERS: NONE
ABSENT: CODNCILMEMBERS: NONE, BY
(Signature of Official)
MAYOR, CITY OF BURLINGAME
(Title of Official)
FOR CALPERS USE ONLY
Pre-tax payroll deduction plan effective date:
Approved By: Title:
MEMBER SERVICES DIVISION, Service credit section -Unit 830