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RESOLUTION 2001- 68 <br />RESOLUTION OF THE TOWN OF LOS GATOS <br />IMPLEMENTING TI4E PROVISIONS OF SECTION 414 (lq) (2) OF TIIE INTERNAL <br />REVENUE CODE FOR AFSCME REPRESENTEID POSITIONS <br />WHEREAS, the Town of Los Gatos has the authority to implement the provisions <br />of Section 414 (h) (2) of the Internal Revenue Code (IRC); and <br />WHEREAS, t11e Board of Adnunistration of the Public Employee's Retirement <br />System adopted its resolution re; Section 414 (h) (2) .IRC on September 18, 1985; and <br />WHEREAS, the Internal Revenue Service has stated in Deceil~ber, 19$5, the <br />implementation of the provisions of `Section 414 (li) (2) IRC pursuant to t11e Resolution of the Board <br />of Administration would satisfy the legal requirements of Section 414 (h) (2) IRC; and <br />WI3EREAS, the Town of Los Gatos has determined that even though t11e <br />implementation of t11e provisions of Section 414 (h) (2) IRC is not required by law, the tax benefit <br />offered by Section 414 (li) (2) should be provided to its employees who are members of t11e Public <br />Employees' Retirement System: <br />NOW THEREFORE, BE IT RESOLVED: <br />L That the Town of Los Gatos will implement t11e provisions of Section 414 (1~) (2) Internal <br />Revenue Code by nlalcing employee contributions puusuant to California Government Code <br />Section 20691 to the Public Employees' Retirement System on behalf of American <br />Federation of State, County and Municipal Employees (AFSCME) Local 101 represented. <br />employees who are members of the Public Employees' Retirement System. "Employee <br />contributions" .shall mean those contributions to the. Public Employees' Retirement System <br />which are deducted from the..salary of employees and are credited to individual employee's <br />.accounts pursuant to California Government Code Section 20691. <br />II. That the contributions made by the Town of Los Gatos to t11e Public Employees' Retirement <br />System, although designated as employee contributions, are being paid by the Town of Los <br />Gatos in lieu of contributions by AFSCME represented employees w11o are mcinbers of the <br />Public Employees' Retirement System. <br />III. That. AFSCME represented employees shall not have the option of choosing to receive the <br />contributed amounts directly instead of 1laving them paid by the Town of Los Gatos to tLie <br />