HomeMy WebLinkAbout16-Human Resources
,
.
.' ciTY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From:
EDWARDS. RAYA
HUMAN RESOURCES
AUGUST 22, 2000
Subject:
0,... '.'"'''' 'I
j..
. i i 1 "'. I ~ t. ,....
RESOLUTION OF THE CITY OF SAN
BERNARDINO IMPLEMENTING PRO-
VISIONS OF INTERNAL REVENUE CODE
SECTION 414(H)(2) FOR MISCELLANE-
OUS EMPLOYEES AND AUTHORIZING
A PRE-TAX PAYROLL DEDUCTION PLAN
FOR SERVICE CREDIT PURCHASES
Dept:
Date:
Synopsis of Previous Council Action:
On January 24,2000, the Mayor and Common Council adopted Resolution 2000-13, a
resolution establishing a Management & Confidential Employee compensation and
benefits plan.
Recommended Motion:
Adopt Resolution.
-'~~
Edward S. Rava
Yes
Phone:
384-5161
Contact Person:
Supporting Data Attached:
Ward:
FUNDING REQUIREMENTS:
Amount:
Source: (Acct No)
(~cct Descriptio~_
Finance: /ifi:u.
.
J/zI-i -IMd IA fJ
Council Notes:
'1/5/40
Agenda Item NO.-1./,
. '
.' CITY OF SAN BERNARDINO -REQUEST FOR COUNCIL ACTION
STAFF REPORT
SUBJECT
Resolution of the City of San Bemardino implementing the provisions of Intemal
Revenue Code (IRC) Section 414(h)(2) for Miscellaneous Employees and authorizing a
pre-tax payroll deduction plan for service credit purchases (Contribution Code 14).
BACKGROUND
On January 24, 2000, the Mayor and Common Council adopted:
1. Resolution of the City of San Bemardino establishing a Management &
Confidential Employee compensation and benefits plan, of which one of the
items in the resolution was to allow employees to buy back previous time, tax
deferred, from their PERS retirement.
The Califomia Public Employees' Retirement System (CaIPERS) requires the City to file
a resolution in order to extend the pick-up of member contributions under Intemal
Revenue Code (IRC) 414(h)(2) provisions for member payments of service credit
purchases.
This benefit will allow employees who separated from a PERS agency or an agency
with a reciprocal agreement with PERS, and cashed out their retirement at the time of
that separation, to buy back previous time, at their expense, on a tax deferred basis.
FINANCIAL IMPACT
There is no cost to the City for this benefit.
RECOMMENDATION
1. Adopt Resolution.
HRlAgenda Items:SR.PERS.BUY.BACK
c
c
c
1
2
3
4
S
6
7
8
9
10
11
12
13
14
15 ,I
I
16
17
18
19
20
21
22
23
24
25
26
27
28
~(Q)l?V
Resolution No
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 Califomia Public Employees'
Retirement System (CaIPERS) at the April 1996 meeting approved a pre-tax payroll
deduction plan for service credit purchases under Intemal Revenue Code (IRC) Section
414(h)(2); and,
WHEREAS, the City of San Bemardino has the authority to implement the
provisions of IRC Section 414(h)(2) and has detennined 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 Bemardino 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 Bemardino will implement the provisions of IRC
Section 414(h)(2) by making employee contributions for service credit purchases
pursuant to the Califomia State Govemment Code on behalf of its employees who are
members of CalPERS and who have made a binding irrevocable election to participate
1(0
tJr/sJtn>
..,-
'-
c
1
2
3
4
S
6
7
8
9
10
11
12
13
14
IS
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 CaIPERS,
although designated as ernployee contributions, are being paid by the City of San
Bernardino in lieu of contributions by the employees who are mernbers 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 CalPERS,
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.
18
19
20
21
22
23
24
2S
26
C 27
28
V.
That the effective date for commencement of the pre-tax payroll deduction
plan cannot be any ear1ier 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.
c
c
24
25
26
C 27
28
1
2
RESOLUTION OF THE CITY OF SAN BERNARDINO . , , AUTHORIZING A
PRE-TAX PAYROLL DEDUCTION PLAN FOR SERVICE CREDIT PURCHASES.
3
4
5
6
7
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
Common Council of the City of San Bernardino at a
meeting thereof,
held on the
day of
, 2000, by the following vote,
to wit:
COUNCILMEMBERS:
I ESTRADA
10 I LIEN
MC GINN IS
SCHNETZ
SUAREZ
ANDERSON
MC CAMMACK
15 il
AYES
NAYES
ABSTAIN ABSENT
8
9
11
12
13
14
16
17
18
Rachel G. Clark, City Clerk
The foregoing resolution is. hereby approved this
o
19
,2000,
20
21
22
Judith Valles, Mayor
City of San Bernardino
23
Approved as to form and
Legal content:
JAMES F. PENMAN,
City Attorney
HR/Agenda Ilems:RESO.PERS.BUY.BACK 08130/2000 dp
"
'I.
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): G\ --J -OCl Item #
Vote: Ayes ~ Nays -Pr
Change to motion to amend original documents:
1 i.o Resolution # ?f:Xx:> -2104
Abstain -e- Absent \
Reso. # On Attachments: --==-
Contract term:
Date Sent to Mayor: q -(., -(X;
Date of Clerk's Signature: q-/ t-ro
Date Returned from Mayor:
Reso. Log Updated:
Date Memo Sent to Department for Signature:
-
Date Letter Sent to Outside Party for Signature:
60 Day Reminder Letter Sent on 30th day:
90 Day Reminder Letter Sent on 45th day:
-
NullNoid After: -
9 - 't-<JJ
t/
q-J-OO
Date of Mayor's Signature:
Seal Impressed: V
See Attached: ==- Date Returned:
See AttaChe~.
See Attached.
See Attached:
-
Date Returned:
Note on Resolution of Attachment stored separately: ---=:::...
Direct City Clerk (circle 1): PUBLISH, POST, RECORD W/COUNTY Date:
See Attached: ~
Yes ./ No By
-
Yes No ;/ By
Yes No ,/ By
Yes No / By
Yes No ~ By
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234,655,92-389):
Copies Distributed to:
,/
City Attorney
Parks & Rec.
Code Compliance
Dev. Services
Others:
Finance MIS
I-LIlI fY-> ~l2c.5:S
Police
Public Services
Notes:
EDA
Water
BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc.l
Ready to File: "1\1' Date: ~