HomeMy WebLinkAboutCity Council - 96-68 RESOLUTION NO.9 6—6 8 .
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HUNTINGTON BEACH DECLARING EMPLOYER
PICKUP PRE-TAX PAYROLL DEDUCTION PLAN FOR
SERVICE CREDIT PURCHASES (CONTRIBUTION CODE 14)
WHEREAS, 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 415(h)(2); and
The City of Huntington Beach 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 CaIPERS; and
The City of Huntington Beach elects to participate in the pre-tax payroll deduction plan
for all employees in the following CaIPERS coverage groups:
Huntington Beach Miscellaneous Employees
Huntington Beach Safety Employees
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington
Beach as follows:
1. That the City of Huntington Beach 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 CaIPERS
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 CaIPERS
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 Huntington Beach to CaIPERS,
although designated as employee contributions, are being paid by the City of Huntington
Beach in lieu of contributions by the employees who are members of CaIPERS.
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 Huntington Beach to
CaIPERS.
4. That the City of Huntington Beach shall pay to CaIPERS 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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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 Huntington Beach 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.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 19 t h day of A u s r , 1996.
Mayor
ATT
APPROVED AS TO FORM:
City Clerk
City Attorney 8 �G
REVIEWED AND APPROVED:
I D ED:
tor City Administra
Deputy City Ad inistr for/Directo f
Administrative Services
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Res. No. 96-68
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of
the City of Huntington Beach, and ex-officio Clerk of the City Council of said
City, do hereby certify that the whole number of members of the City Council of
the City of Huntington Beach is seven; that the foregoing resolution was passed
and adopted by the affirmative vote of at least a majority of all the members of said
City Council at a regular meeting thereof held on the 19th of August, 1996 by the
following vote:
AYES: Councilmembers: Harman, Leipzig,Bauer, Sullivan,Dettloff,
Green, Garofalo
NOES: Councilmembers: None
ABSENT: Councilmembers: None
/Om�
City Clerk and ex-officio Clerk of the
City Council of the City of Huntington
Beach, California
G/resoluti/resbkpg