Resolution 12564CITY OF ALAMEDA RESOLUTION 12564
IMPLEMENTING THE PROVISIONS OF SECTION 414(h)(2)
OF THE INTERNAL REVENUE CODE TO PROVIDE
EMPLOYEE CONTRIBUTIONS TO THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
ON A PRE -TAX BASIS
WHEREAS, the City of Alameda has the authority to
implement the provisions of section 414(h)(2) of the Internal
Revenue Code ( "IRC "); and
WHEREAS, the Board of Administration of the Public
Employees' Retirement System adopted its resolution regarding
section 414(h)(2) on September 18, 1985; and
WHEREAS, the Internal Revenue Service has stated on
December 6, 1985 that the implementation of the provisions of
section 414(h)(2) of the IRC pursuant to the resolution of the
Board of Administration would satisfy the legal requirements of
section 414(h)(2) of the IRC; and
WHEREAS, the City of Alameda has determined that even
though the implementation of the provisions of section 414(h) (2) of
the IRC is not required by law, the tax benefit offered by section
414(h)(2) of the IRC should be provided to its employees who are
members of the Public Employees' Retirement System.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City
of Alameda that:
Section 1. The City of Alameda will implement the
provisions of section 414(h)(2) of the Internal Revenue Code by
making employee contributions pursuant to California Government
Code section 20615 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 employees' accounts pursuant to California Government
Code section 20615.
Section 2. The contributions made by the City of Alameda
to the Public Employees' Retirement System, although designated as
employee contributions, are being paid by the City of Alameda in
lieu of contributions by the employees who are members of the
Public Employees' Retirement System.
Section 3. The employees shall not have the option of
choosing to receive the contributed amounts directly instead of
having them paid by the City of Alameda to the Public Employees'
Retirement System.
Section 4. The City of Alameda 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.
Section 5. The amount of contributions designated as
employee contributions and paid by the City of Alameda to the
Public Employees' Retirement System on behalf of a employee shall
be the entire contribution required of the employee by the Public
Employees' Retirement Law (California Government Code sections
2000, et sea.).
Section 6. The contributions designated as employee
contributions made by the City of Alameda to the Public Employees'
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.
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 16th day of
August , 1994, by the following vote to wit:
AYES: Councilmembers Appezzato, Arnerich, Lucas,
Roth and President Withrow - 5.
NOES: None.
ABSENT: None.
ABSTENTIONS: - None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the
official seal of said City this 17th day of August , 1994.
Diane B. Felsch, City Clerk
City of Alameda