Resolution 12794CITY OF ALAMEDA RESOLUTION NO. 12794
APPROVING A PRE-TAX PAYROLL DEDUCTION PLAN
FOR SERVICE CREDIT PURCHASES
WHEREAS, the Board of Administration of the California
Public Employees' Retirement System (CalPERS) 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 Alameda 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
employees who are members of CalPERS; and
WHEREAS, the City of Alameda elects to participate in the
pre-tax payroll deduction plan for all employees in all CalPERS --
coverage groups.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Alameda that:
1. The City of Alameda 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 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.
2. That the contributions made by the City of Alameda
to CalPERS, although designated as employee contributions, are
being paid by the City of Alameda in lieu of contributions by the
employees who are members of CalPERS.
3. That the employees shall not have the option of
choosing to receive the contributed amounts directly instead of
having them paid the by City of Alameda to CalPERS.
4. That the City of Alameda shall pay to CalPERS the
contributions designated as employee contributions from the same
source of funds as used in paying salary, thereby resulting in tax
deferral of employees contributions.
Revised 8/12/96
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
CalPERS, whichever is later.
6. That the governing body of the City of Alameda 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.
I, the undersigned, hereby certify that the foregoing Resolution
was duly and regularly adopted and passed by the Council of the
City of Alameda in regular meeting assembled on the 2nd day of
July , 1996, by the following vote to wit:
AYES: Councilmembers Arnerich, DeWitt, Mannix
and President Appezzato - 4.
NOES: None.
ABSENT: Councilmember Lucas - 1.
ABSTENTIONS: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the
official seal of said City this 3rd day of July , 1996.
Diane B. Felsch, City Clerk
City of Alameda
Revised 8/12/96