Attachment 1RESOLUTION TO TAX DEFER MEMBER PAID CONTRIBUTIONS – IRC 414(h)(2)
EMPLOYER PICK-UP
WHEREAS, the governing body of the Town of Los Gatos (Name of Agency) has the authority to
implement the provisions of section 414(h)(2) of the Internal Revenue Code (IRC); and
WHEREAS, the Town of Los Gatos (Name of Agency) 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) IRC should be provided to Elected Officials (All
Employees, or All Employees In A Recognized Group or Class of Employment) who are
members of the California Public Employees’ Retirement System:
NOW, THEREFORE, BE IT RESOLVED:
I. That the Town of Los Gatos (Name of Agency) will implement the provisions of section
414(h)(2) Internal Revenue Code by making employee contributions pursuant to
California Government Code Section 20691 to the California Public Employees’
Retirement System on behalf of all its employees or all its employees in a recognized
group or class of employment who are members of the California 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 (Name of Agency) to the
California Public Employees’ Retirement System, although designated as employee
contributions, are being paid by the Town of Los Gatos (Name of Agency) in lieu of
contributions by the employees who are members of the California Public Employees’
Retirement System.
III. That employees shall not have the option of choosi ng to receive the contributed amounts
directly instead of having them paid by the Town of Los Gatos (Name of Agency) to the
California Public Employees’ Retirement System.
IV. That the Town of Los Gatos (Name of Agency) shall pay to the California 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 of Los Gatos (Name of Agency) to the California Public Employees’ Retirement
System on behalf of an employee shall be the entire contribution required of the
employee by the California Public Employees’ Retirement Law (California Government
Code Sections 20000, et seq.).
VI. That the contributions designated as employee contributions made by Town of Los Gatos
(Name of Agency) to the California Public Employees’ Retirement System shall be
treated for all purposes, other than taxation, in the same way that member contributions
are treated by the California Public Employees’ Retirement System.
PASSED AND ADOPTED by the governing body of the Town of Los Gatos (Name of Agency)
____________________________
this day of August 15 (Date), 2017 (Year).
BY
_______________________________________
(Signature of Official)
_______________________________________
(Title of Official)
RETURN ADDRESS:
________________________________________
_________________________________________
________________________________________
FOR CALPERS USE ONLY
RESOLUTION TO TAX DEFER MEMBER PAID CONTRIBUTIONS – IRC 414(h)(2)
Approved by: _________________________________
Title: ______________________________