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HomeMy WebLinkAboutReso - CC - 020-2006RESOLUTION NO. 20-2006 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 (CalPERS) 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 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 CalPERS; and WHEREAS, the City of Burlingame elects to participate in the pre-tax payroll deduction plan for all employees in the following CalPERS coverage group(s): Miscellaneous Plan of the City of Burlingame (70001) Safety Police Plan of the City of Burlingame (75001) Safety Fire Plan of the City of Burlingame (74001) NOW, THEREFORE, BE IT RESOLVED: I. That the City of Burlingame 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 CalPERS 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. H. That the contributions made by the City of Burlingame to CalPERS, although designated as employee contributions, are being paid by the City of Burlingame in lieu of contributions by the employees who are members of CalPERS. 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 to CalPERS. W. That the City of Burlingame 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 payroll deduction plan cannot be any earlier than July 1, 1996, or the date the completed resolution is received and approved in CalPERS, whichever is later. VI. That the governing body of the City of Burlingame 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 CalPERS 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 this 3°' day of April, 2006. BY MA OR I, DORIS MORTENSEN, City Clerk of the City of Burlingame, do hereby certify that the foregoing resolution was introduced at a regular meeting of the City Council held on the 3rd day of April, 2006, and was adopted thereafter by the following vote: AYES: COUNCIL MEMBERS: BAYLOCK, COHEN, KEIGHRM, NAGEL,O'MAHONY NOES: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS: NONE G CY Y CLERK RETURN ADDRESS: FOR CALPERS USE ONLY Pre-tax Payroll Deduction Plan Effective Date: Approved by: Title: MEMBER SERVICES DIVISION, Service Credit Section — Unit 830