HomeMy WebLinkAbout15-Human Resources
ORIGINAL
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From:
LINN LIVINGSTON
Subject: RESOLUTIONS
IDENTIFYING EMPLOYEE
RETIREMENT CONTRIBUTIONS TO
THE CALIFORNIA PUBLIC
EMPLOYEES RETIREMENT SYSTEM
(CALPERS) TO BE TREATED AS
EMPLOYER CONTRIBUTIONS FOR
TAX PURPOSES
Dept:
HUMAN RESOURCES
Date:
December 2, 2008
MICC Meeting Date: December 15, 2008
Synopsis of Previous Council Action:
Recommended Motion:
Adopt Resolutions.
af~ v& ' .
Signatu~
Contact person:
Linn Livinaston
Phone:
384-5161
Supporting data attached: Yes
Ward:
FUNDING REQUIREMENTS: Amount:
No Cost
Source: (Acct. No.)
(Acct. Description)
Finance:
Council Notes: &0 2008 - ~~3 ~ ZCXJ.?-4"Sr"
Agenda Item No. J 6
1'2. .;/5.;()f
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
Subiect:
Resolutions Identifying Employee Retirement Contributions To The California Public
Employees Retirement System (CalPERS) To Be Treated As Employer Contributions For Tax
Purposes
Backl!:round:
Internal Revenue Code (IRe) Section 414(h)(2) allows public agencies to designate required
employee contributions as being "picked-up" by the employer and treated as employer
contributions for tax purposes. The effect of a "pick-up" is to defer tax on employee contribution
amounts until the member retires and receives retirement benefits, or separates from employment
and takes a refund of contributions. Absent this provision, employee contributions to a defined
benefit pension plan qualified under Section 401 (a) would automatically be after-tax
contributions, which means it would be taxable income to the employee at the time the
contribution was made.
In order to continue to protect the tax status of these contributions, CalPERS has asked
employers that pick up all or a portion of the employee's retirement contribution to have a
Resolution on file with them to ensure compliance with Federal tax reporting requirements.
Attached is one Resolution covering our Local Miscellaneous members and a second Resolution
for Safety members.
Financial Imoact:
There is no financial impact.
Recommendation:
Adopt Resolutions.
S:\Agenda Items\SR.PERS.Employee eootr.2OO8.doc
Resolution No
2
3
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY 0
SAN BERNARDINO FOR EMPLOYER PAID MEMBER CONTRIBUTIONS
5
4
WHEREAS, the governing body of the City of San Bernardino has the authority t
implement Government Code Section 20691;
6
WHEREAS, the governing body of the City of San Bernardino has a written labor polic
7
8
or agreement which specifically provides for the normal member contributions to be paid by th
9
employer;
10
WHEREAS, one of the steps in the procedures to implement Section 20691 is th
II
adoption by the governing body of the City of San Bernardino of a Resolution to commence sai
12
Employer Paid Member Contributions (EPMC);
13
WHEREAS, the governing body of the City of San Bernardino has identified th
14
following conditions for the purpose of its election to pay EPMC:
15
.
This benefit shall apply to all employees of Local Miscellaneous members (70001).
16
.
This benefit shall consist of paying the full 8% normal member contributions
17
EPMC.
18
. The effective date of this Resolution shall be December 16,2008.
19
20
NOW, THEREFORE. BE IT RESOLVED that the governing body of the City 0
21
San Bernardino elects to pay EPMC, as set forth above.
22
23
24
25
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY 0
SAN BERNARDINO FOR EMPLOYER PAID MEMBER CONTRIBUTIONS
4
the Common Council of the City of San Bernardino at a
meeting thereof, he!
2
3
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an
, 2008, by the following vote, to wit:
AYES
NA YES
ABSTAIN
ABSENT
Rachel G. Clark, City Clerk
17
The foregoing resolution IS hereby approved this
day 0
18
,2008.
19
20
Patrick J. Morris, Mayor
City of San Bernardino
21
Approved as to form:
22
JAMES F. PENMAN,
City Attorney
23
25
)--. C-.-.v--
24
:\ enda Items\Reso.Employer Paid Member Contributions. doc
Resolution No
2
3
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY 0
SAN BERNARDINO FOR PAYING AND REPORTING THE VALUE OF EMPLOYE
PAID MEMBER CONTRIBUTIONS
4
5
WHEREAS, the governing body of the City of San Bernardino has the authority t
6
implement Government Code Section 20636(c)(4) pursuant to Section 20691;
7
WHEREAS, the governing body of the City of San Bernardino has a written labor polic
8
or agreement which specifically provides for the normal member contributions to be paid by th
9
employer, and reported as additional compensation;
10
WHEREAS, one of the steps in the procedures to implement Section 20691 is th
II
adoption by the governing body of the City of San Bernardino of a Resolution to cornmenc
12
13
paying and reporting the value of said Employer Paid Member Contributions (EPMC);
14
WHEREAS, the governing body of the City of San Bernardino has identified
15
following conditions for the purpose of its election to pay EPMC:
.
This benefit shall apply to all employees of Safety members (74001,75001).
16
17
.
This benefit shall consist of paying the full 9% normal member contributions
18
EPMC, and reporting the same percent (value) of compensation earnable (excludin
19
Government Code Section 20636(c)(4)) as additional compensation.
20 . The effective date of this Resolution shall be December 16,2008.
21
NOW, THEREFORE, BE IT RESOLVED that the governing body of the City 0
22
San Bernardino elects to pay and report the value ofEPMC, as set forth above.
23
24
25
~
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY 0
SAN BERNARDINO FOR PAYING AND REPORTING THE VALUE OF EMPLOYE
PAID MEMBER CONTRIBUTIONS
3
4
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an
5 the Common Council of the City of San Bernardino at a
meeting thereof, hel
6 on the
day of
, 2008, by the following vote, to wit:
7
8
COUNCILMEMBERS:
ESTRADA
BAXTER
BRINKER
VACANT
KELLEY
JOHNSON
MCCAMMACK
AYES
NA YES
ABSTAIN
ABSENT
9
10
II
1~
13
14
15
16
Rachel G. Clark, City Clerk
17
The foregoing resolution IS hereby approved this
day 0
18
,2008.
19
~o
~I
Patrick J. Morris, Mayor
City of San Bernardino
22
Approved as to form:
23
JAMES F. PENMAN,
City Attorney
~4
?~
~5
da I tems\Reso. Paying& Reporting. Val uc.Employer.Contributions.doc