HomeMy WebLinkAbout2000-264
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Resolution No 2000-264
RESOLUTION OF THE CITY OF SAN BERNARDINO IMPLEMENTING
PROVISIONS OF INTERNAL REVENUE CODE (IRC) SECTION 414(H)(2) FOR
MISCELLANEOUS EMPLOYEES AND AUTHORIZING A PRE-TAX PAYROLL
DEDUCTION PLAN FOR SERVICE CREDIT PURCHASES.
WHEREAS, on January 24, 2000, the Mayor and Common Council adopted
Resolution 2000-13, a resolution establishing a Management and Confidential
Employee compensation and benefits plan;
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 San Bernardino 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 Miscellaneous employees who are members of CaIPERS; and,
WHEREAS, THE City of San Bernardino elects to participate in the pre-tax
payroll deduction plan for all employees in the Management and Confidential Unit of the
Miscellaneous Group.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
I. That the City of San Bernardino 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
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2000-264
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RESOLUTION OF THE CITY OF SAN BERNARDINO . . . AUTHORIZING A
PRE-TAX PAYROLL DEDUCTION PLAN FOR SERVICE CREDIT PURCHASES.
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.
II.
That the contributions made by the City of San Bernardino to CalPERS,
although designated as employee contributions, are being paid by the City of San
Bernardino 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 San Bernardino
to CaIPERS.
IV.
That the City of San Bernardino shall pay to CalPERS the contributions
16 designated as employee contributions from the same source of funds as used in paying
17 salary, thereby resulting in tax deferral of employee contributions.
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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 CaIPERS, whichever is later.
VI.
That the governing body of the City of San Bernardino 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.
,
2000-264
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RESOLUTION OF THE CITY OF SAN BERNARDINO . . . AUTHORIZING A
PRE-TAX PAYROLL DEDUCTION PLAN FOR SERVICE CREDIT PURCHASES.
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
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Common Council of the City of San Bernardino at a Joint Regular
meeting thereof,
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day of September
held on the 5th
, 2000, by the following vote,
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to wit:
I
I COUNCILMEMBERS:
I ESTRADA
LIEN
I MC GINNIS
SCHNETZ
SUAREZ
ANDERSON
MC CAMMACK
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I
~t)1Ji ~
jy{ achel G. Clark, ~ity Clerkk
o >d~/'rlPCikJflj ~ (j
is hereby approved this 8i1v
of
AYES
NAYES
ABSTAIN ABSENT
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The foregoing
resolution
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September
,2000.
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Approved as to form and
Legal content:
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JAMES F. PENMAN,
City Attorney
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HRlAgenda Items:RESQ,PERS.BUY.BACK 08/30/2000 dp