2001-068-Implementing The Provisions Of Section 414(H) (2) Of The Internal Revenue Code For A Afscme Represented Positions

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