0818RESOLUTION NO. 818
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROLLING HILLS IMPLEMENTING A PRE-TAX PAYROLL
DEDUCTION PLAN FOR SERVICE . CREDIT PURCHASES
UNDER INTERNAL REVENUE .CODE (IRS) SECTION 414(h)(2).
WHEREAS, the Board of Administration of the California Public Employees'
Retirement System (Ca1PERS) at the April, 1996 meeting approved a pre-tax payroll
deduction plan for service credit purchases under Internal Revenue Code (IRS) section
414(h)(2); and
WHEREAS, the City of Rolling Hills as the authority to implement the
provisions of IRS 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 Ca1PERS; and
WHEREAS, the City of Rolling Hills elects to participate in the pre-tax payroll
deduction plan for all employees in the following Ca1PERS coverage group:
Membership Coverage Group
ALL EMPLOYEES
NOW, THEREFORE, BE IT RESOLVED:
Section 1: That the City of Rolling Hills will implement the provisions of
IRS 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 Ca1PERS 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 Ca1PERS 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.
Section 2: That the contributions made by the City of Rolling Hills to
Ca1PERS, although designated as employee contributions, are being paid by the City of
Rolling Hills in lieu of contributions by the employees who are members of Ca1PERS.
Section 3: 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
Rolling Hills to CalPERS.
Section 4: That the City of Rolling Hills shall pay to Ca1PERS 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.
Section 5: 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 Ca1PERS, whichever is later.
Section 6: That the governing body of the City of Rolling Hills 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 Ca1PERS for those
employees of the above stated Coverage Group who have elected to participate in this plan.
PASSED AND ADOPTED by the governing body of the City of Rolling Hills
this 23rd day of June, 1997.
&B-3AIlen'L-ay
Mayor V
Resolution No. 818 -1-
ATTEST:
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Marilyn L. Kern
Deputy City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF ROLLING HILLS )
The foregoing Resolution No. 818 entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROLLING HILLS IMPLEMENTING A PRE-TAX PAYROLL
DEDUCTION PLAN FOR SERVICE CREDIT PURCHASES
UNDER INTERNAL REVENUE CODE (IRS) SECTION 414(h)(2).
was approved and adopted at a regular meeting of the City Council on June 23, 1997, by the
following roll call vote:
AYES: Councilmember Murdock, Mayor Pro Tem Hill and Mayor Lay.
NOES: None.
ABSENT: Councilmember Heinsheimer and Pernell.
ABSTAIN: None.
YVN
MARILYN L. K RN
DEPUTY CITY CLERK
1
Resolution No. 818 -2-