2001-122-Implementing The Provisions Of Section 414 (H) (2) Of The Internal Revenue Code For The Elected Town Clerk And The Appointed Clerk AdministratorRESOLUTION 2001-122
RESOLUTION DF THE TOWN OF LOS GATOS
:IMPLEMENTING THE PROVISIONS OF SECTION 414 (h) (2) OF THE INTERNAL
REVENUE CODE FOR THE ELECTED TOWN CLERK AND THE APPOINTED CLERK
ADMINISTRATOR
WHEREAS, the Town of Los Gatos has the authority to implementthe provisions
of Section 414 (h) (2) of the Internal Revenue Code (IRC); :and
WHEREAS, the Board of Administration of the Public Employee's Retirement
System adopted its resolution re: Section 4:14 (h) (2) IRC on September 18, 1985; and
WHEREAS, the Internal Revenue Service has stated in December, 19$5, the
implementation of the provisions of Section 414 (h) (2) IRC pursuant to the Resolution of the Board
of Administration would satisfy the legal requirements of Section 414 (h) (2) IRC; and
WHEREAS, the Town of .Los Gatos has determined that even though the
.implementation of the provisions of Section 414 (h) (2) IRC is not required by law, the tax benefit
offered by Section 414 (h) (2) should be provided to its employees who are members of the Public
Employees' Retirement System:
NOW THEREFORE, BE I`I' RESOLVED:
I. That effective November 12, 2001.,. the Town of Los Gatos will implement the provisions of
Section 414 (h) (2) Internal Revenue Code by malting employee contributions pursuant to
California Government Code Section 20691 to the Public Employees' Retirement System
on behalf of the Elected Town Clerlt, and the .Appointed Clerk Administrator, 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 the Public Employees' Retirement
System, although designated as employee contributions, are being paid by the Town of Los
Gatos in lieu of contributions by the Elected Town Clerk and the .Appointed Clerk
Administrator, who are .members of the Public Employees' Retirement System.
III, That the Elected Town Clerk and the Appointed Cleric Administrator shall not have the
option of choosing to receive the contributed amounts directly instead of having them paid
by the Town of Los Gatos to the Public Employees' Retirement System.
IV. That the Town of Los Gatos shall pay to the Public Employees' .Retirement System the
contributions designated as employee contributions from the same source of funds as used
in paying salary.
V. That the .amount of the contributions designated as employee contributions and paid by the
Town ofLos Gatos to the Public Employees' Retirement System on behalf of an employee
shall be the entire contribution required of the employee by the Public Employees'
Retirement Law .(California Government Code Section 20000, et seq.).
VI. Thatthe contributions designated as employee contributions madebythe Town ofLos Gatos
to the .Public Employees' Retirement System shall be treated for all purposes, other than
taxation, in the same way that member contributions are treated by the Public Employees'
Retirement System.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos, California, held on the St'' day of November, 2001 by the following vote:
COUNCIL MEMBERS;
AYES: Randy Attaway, Steven Blanton, Sandy Decker, Steve Glickman,
Mayor Joe Pirzynski.
NAYS: None
ABSENT: None
P
ABSTAIN.: None ~i
SIGNED: 7
MAYOR OF THE TOWN OF LOS GATOS
.LOS GATOS, CALIFORNIA
ATTEST: ~ I
~~.L~~ CJ , f ~~
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA