2001-068-Implementing The Provisions Of Section 414(H) (2) Of The Internal Revenue Code For A Afscme Represented PositionsRESOLUTION 2001- 68
RESOLUTION OF THE TOWN OF LOS GATOS
IMPLEMENTING THE PROVISIONS OF SECTION 414 (h) (2) OF TIIE INTERNAL
REVENUE CODE FOR AFSCME REPRESENTED 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, the Board of Administration 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 December, 1985, 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 IT RESOLVED
I. That the Town of Los Gatos will implement the provisions of Section 414 (h) (2) Internal
Revenue Code by slaking employee contributions pursuant 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 ernployee'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 AFSCME represented employees who are members 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 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 fields as used.
in paying salary.
V. That the amount of the contributions designated as employee contributions and paid by the
Town of Los 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 sect.).
VI. That the contributions designated as employee contributions made by the Town of Los 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 18" day of June, 2001 by the following vote:
COUNCIL MEMBERS:
AYES: Randy Attaway, Sandy Decker, Steve Glickman,
Mayor Joe Pirzynski.
NAYS: None
ABSENT: Steven Blanton
ABSTAIN: None
SIGNEDJOR
f?VOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA