HomeMy Public PortalAbout96-144RESOLUTION NO. 96-144
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LYNWOOD APPROVING A PRE-TAX PAYROLL
DEDUCTION PLAN FOR SERVICE CREDIT PURCHASES UNDER
THE CALIFORNIA PUBLIC EMPLOYEE'S RETIREMENT SYSTEM
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 Lynwood 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 wno are members of CalPERS; and
WHEREAS, the City of Lynwood elects to participate in the
pre-tax payroll c:eduction plan for all employees in the following
CalPERS coverage groups: ,~r.
70001 Miscellaneous
74001 Fire
NOW, THEREFORE, the City Council of the City of Lynwood
does hereby find, determine, order and resolve as follows:
~ Section 1. That the City of Lynwood 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
_ndividual employee accounts for service credit purchases thereby
resulting in tax deferral of employee contributions.
Section 2. That the contributions made by the City of
Lynwood ~o CalPERS, although designated as employee contributions,
are being paid by the City of Lynwood in lieu of contributions by
the employees who are members of CalPERS.
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 Lynwood to CalPERS.
Section 4. That the City of Lynwood 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.
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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 CalPERS, whichever is later.
Section 6. That the governing body of the City of
Lynwood shall participate 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 ststed Coverage Groups who have elected to ~_
y s.-~ticipate in this plan.
i~~.SSED, APPROVED and ADOPTED this 3rd day of September , 1996.
ATTEST:
PAUL H. RICHARDS II, Mayor
City of Lynwood
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/tt ~
ANDREA L. HOOPER
City Clerk
APPROVED AS TO FORM:
APPROVED AS TO CONTENT:
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C~,h, ~~R,m,r.~ FAUST N ONZ ES, R Manager