1057 RESOLUTIU:N NO. 1057
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROLLING HILLS IIvIPLEMENTING INTERNAL REVENUE
CODE SECTION 414(h)(2) FOR EMPLOYER PICK-UP OF
EMPLOYEE CONTRIBUTIONS TO THE CALIFORNIA
PUBLIC EMPLOYEES'RETIREMENT SYSTEM (CaIPERS)
WHEREAS, the City of Rolling Hills has the authority to implement the
provisions of section 414(h)(2) of tht. Internal Revenue Code {IRC); and
� WHEREAS, the Board of Administration of the Public Employees' Retirement
System adopted its resolution regarding section 414(h)(2} IRC on September 18, 1985;
and
WHEREAS, the Internal Revenue ServS.c.e�has stated in December 1985, that the
implementation of the provisions of section 414(h}(2) IP.0 pursuant to the Resolution of
the Board of Administration would satisfy the legal requirements of section 414(h)(2)
IRC; and
WHEREAS, the City of Rolling Hills has determined that even though the
implementation of the provisions of section 414(h)(2) IRC is not required by la�v, the tax
benefit offere� by section 414(h)(2) IRC should be provided to its employees who are
members of the Fublic Employees' Retirement System.
NOW, THEREFORE, BE IT RESOLVED:
I. That the City of Rolling Hills will implement the provisioris of section
414(h)(2) Internal Revenue Code by making employee contributions pursuant to
California Government Code section 20691 to the Public Employees' Retirement System
on behalf of its employees who are members of the Public Employees Retirement
System. "Employee contributions" shall mean those contributions to the Public
Employees' Retirement System which are deducted from the salary of employees and are
credited to individual employee's accounts pursuant to California Government Code
section 20691.
II. That the contributions made by the City of Rolling Hills to the Public
Employees' Retirement System, 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 the Public Employees' Retirement System.
III. That 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
the Pubiic Employees' Retirement System.
IV. That che City of Rolling Hills shall pay to the Public Employees'
Retirement System the contributions designated as employee contributions from the same
source of funds as used in paying salary.
V. That the amount of the contributions designated as employee contributions
and paid by the City of Rolling Hills to the 1'ublic Employees' Retirement System on
behalf of an employee shall be the entire contribution required of lhe employee by the
Public Employees' Retirement Law (Califarnia CJovernment Code section 20000, et
seq.).
VI. That the contributions designated as employee contributions made by City
of Rolling Hills to the Public Employ�es' Retirement System shall be treated for all
purposes, other than taxation, in the same way that member contributions are treated by
the Public Employees' Retirement System.
PASSED, APPROVED AND ADOPTED THIS 12TH DAY OF JANUARY 2009. '
i
FRANK HILL, MAYOR ,
ATTEST:
AN ON D ' ERBR , CITY CLF.RK
. i
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF ROLLING HILLS )
I certify that the foregoing Resolution No. l OS7 entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING
HILLS IMPLEMENTING INTERNAL REVENUE CODE SECTION
414(h)(2) FOR EMPLOYER PICK-UP OF EMPLOYEE CONTRIBUTIONS
TO THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
(Ca1PERS)
was approved and adopted at a regular meeting of the City Council on January 12, 2009,
by the following roll call vote: �
AYES: Councilmembers Lay � Pernell , Mayor Pro Tem Heinsheimer
and Mayor Hill .
NOES: None .
ABSENT: Councilmember Black.
ABSTAIN: None .
and in compliance with the laws of California�*ras posted at the following:
Administrative Offices.
i
�I`TY CLE �