HomeMy WebLinkAbout2005-042 - Provide Pre-Tax Payroll Deduction Plan for Employees Purchasing Service Credit
RESOLUTION NO. 2005-042
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA TO PROVIDE A PRE-TAX PAYROLL
DEDUCTION PLAN FOR EMPLOYEES PURCHASING
SERVICE CREDIT IN THE PUBLIC EMPLOYEES'
RETIREMENT SYSTEM
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1: The City Council hereby finds, determines and declares as follows:
A. The Board of Administration of the California Public Employees' Retirement
System (CaIPERS) 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).
B. The City of Santa Ana 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 member of CaIPERS.
C. The City of Santa Ana elects to participate in the pre-tax payroll deduction plan
for all employees in the following CalPERS coverage groups:
All Miscellaneous members
All Safety members
D. The City of Santa Ana 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 employees accounts for service credit
purchases, thereby resulting in tax deferral of employee contributions.
E. The contributions made by the City of Santa Ana to CalPERS, although
designated as employee contributions, are being paid by the City of Santa Ana in
lieu of contributions by the employees who are members of CaIPERS.
F. The employees shall not have the option of choosing to receive the contributed
amounts directly instead of having them paid by the City of Santa Ana to
CaIPERS.
Resolution 2005-042
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G. The City of Santa Ana 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 employee contributions.
H. 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 CaIPERS, whichever is later.
I. That the governing body of the City of Santa Ana 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 Groups who have elected to participate in this plan.
ADOPTED this 18th day of April, 2005.
FORM: 'n~
tcher, City AtlOr;- y
Council members: Alvarez. Bist. Bustamante. Christy. Garcia. Pulido.
Solorio (7)
NOES:
Council members: None (0)
ABSTAIN:
Council members: None (0)
NOT PRESENT: Councilmembers: None (0)
Resolution 2005-042
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CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the
attached Resolution No. 2005-042 to be the original resolution adopted by the City
Council of the City of Santa Ana on April 18. 2005.
Date: ,~){..'J d<), ~jU:)(;,
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Cle;k of the Council ' (
City of Santa Ana
Resolution 2005-042
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