12-4-2000 pers (2)
Reformatted: 10123/95 COUNCIL AGENDA REPORT MEETING DATE: 12/04/00 ITEM NO. DATE: November 16, 2000 TO: MAYOR AND TOWN COUNCIL, FROM: TOWN MANAGE SUBJECT: ADOPT RESOLUTION OF THE TOWN
OF LOS GATOS IMPLEMENTING THE EMPLOYER PICKUP PRE-TAX PAYROLL DEDUCTION PLAN FOR SERVICE CREDIT PURCHASES RECOMMENDATION: Adopt resolution of the Town of Los Gatos implementing the Employer
Pickup Pre-Tax Payroll Deduction Plan for service credit purchases. DISCUSSION: CaIPERS regulations permit Town employees who have worked in Ca1PERS agencies or the military, to purchase
previous service credit. Employees who elect to purchase service credit currently do so on a post-tax basis, By filing a resolution with Ca1PERS, the Town is allowed to extend the pick-up
of member contributions under Internal Revenue Code section 414(h)(2) for service credit purchases. The Employer Pickup Pre-tax Payroll Deduction Plan will provide employees, who elect
to participate, with the benefit of deferring income tax liability on service credit purchases. ENVIRONMENTAL ASSESSMENTS: Is not a project defined under CEQA, and no further action
is required. FISCAL IMPACT: Adoption of the resolution will have no fiscal impact on the Town of Los Gatos. Attachments: Resolution of the Town of Los Gatos implementing the Employer
Pickup Pre-Tax Payroll Deduction Plan for service credit purchases
PREPARED BY: GARY ROGERS, Human Resources Manag N:IMGRIGROGERSICNFICOUNCILISERV CREDICOUNRPT Reviewed by: Attorney mance Revised: 11/16/00 3:13 PM Reformatted: 10123/95
RESOLUTION NO, RESOLUTION OF THE TOWN OF LOS GATOS IMPLEMENTING THE EMPLOYER PICKUP PRE-TAX PAYROLL DEDUCTION PLAN FOR SERVICE CREDIT PURCHASES ******:************************************************
*********************** EMPLOYER CODE: 0870 EMPLOYER PICKUP RESOLUTION PRE-TAX PAYROLL DEDUCTION PLAN FOR SERVICE CREDIT PURCHASES (CONTRIBUTION CODE 14) WHEREAS, the Board of Administration
of the California Public Employees' Retirement System (Ca1PERS) at the April 1996 meeting approved a pre-tax payroll deduction plan for service credit purchases under Internal Revenue
Code (IRC) section 414 (h)(2); and WHEREAS, the Town of Los Gatos has the authority to implement the provisions of IRC Section 414 (h) (2) and has determined that even though implementation
is not required by law, the tax benefit offered by this section should be provided those employees who are members of Ca1PERS; and WHEREAS, the Town of Los Gatos elects to participate
in the pre-tax payroll deduction plan for all employees in the following Ca1PERS coverage group(s): Miscellaneous 70001 Police 75001 NOW THEREFORE, BE IT RESOLVED: That the Town of Los
Gatos will implement the provisions of IRC Section 414 (h) (2) by making employee contributions for service credit purchases pursuant to California State Government Code on behalf of
its employees who are members of Ca1PERS and who have made a binding irrevocable election to participate in the pre-tax payroll deduction plan. "Employee contributions" shall mean those
contributions reported to Ca1PERS which are deducted from the salary of employees and are credited to individual employee accounts for service credit purchases, thereby resulting in
tax deferral of employee contributions. II. That the contributions made by the Town of Los Gatos to Ca1PERS, although designated as employee contributions, are being paid by the Town
of Los Gatos in lieu of contributions by
the employees who are members of Ca1PERS. III. That the 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 Ca1PERS. IV. That the Town of Los Gatos shall pay to CaIPERS the contributions designated as employee contributions from the same source of funds as used in
paying salary, thereby resulting in tax deferral of employee contributions. V. That the effective date for commencement of the pre-tax payroll deduction plan cannot be any earlier than
July 1, 1996, or the date the completed resolution is received and approved in Ca1PERS, whichever is later. VI. That the governing body of the Town of Los Gatos shall participate in
and adhere to requirements and restrictions of the pre-tax payroll deduction plan by reporting pre-tax payroll deductions when authorized by Ca1PERS for those employees of the above
stated Coverage Group(s) who have elected to participate in this plan. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the _____
day of June, 2000 by the following vote: COUNCIL MEMBERS: AYES: NAYES: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF LOS
GATOS LOS GATOS, CALIFORNIA
RETURN ADDRESS: Town of Los Gatos P. O. Box 949 Los Gatos, CA 95031 ****************************************************************************** FOR CALPERS USE ONLY Pre-tax Payroll
Deduction Plan Effective Date: Approved By: ___________________________________ Title: _______________________________________________ Member Services Division, Service Credit Section
-Unit 830 N;IMGRIGROGERSICNEICOUNCILISERVCREDIRES0.414
RESOLUTION 2000 -142. RESOLUTION OF THE TOWN OF LOS GATOS IMPLEMENTING THE EMPLOYER PICKUP PRE-TAX PAYROLL DEDUCTION PLAN FOR SERVICE CREDIT PURCHASES EMPLOYER CODE: 0870 EMPLOYER PICKUP
RESOLUTION PRE-TAX PAYROLL DEDUCTION PLAN FOR SERVICE CREDIT PURCHASES (CONTRIBUTION CODE 14) WHEREAS, the Board of Administration of the California Public Employees' Retirement System
(Ca1PERS) at the April 1996 meeting approved a pre-tax payroll deduction plan for service credit purchases under Internal Revenue Code (IRC) section 414 (h)(2); and WHEREAS, the Town
of Los Gatos has the authority to implement the provisions of IRC Section 414 (h) (2) and has determined that even though implementation is not required by law, the tax benefit offered
by this section should be provided those employees who are members of Ca1PERS; and WHEREAS, the Town of Los Gatos elects to participate in the pre-tax payroll deduction plan for all
employees in the following Ca1PERS coverage group(s): Miscellaneous 70001 Police 75001 NOW THEREFORE, BE IT RESOLVED: I. That the Town of Los Gatos will implement the provisions of IRC
Section 414 (h) (2) by making employee contributions for service credit purchases pursuant to California State Government Code on behalf of its employees who are members of CaIPERS and
who have made a binding irrevocable election to participate in the pre-tax payroll deduction plan. "Employee contributions" shall mean those contributions reported to CaIPERS which are
deducted from the salary of employees and are credited to individual employee accounts for service credit purchases, thereby resulting in tax deferral of employee contributions.
II. That the contributions made by the Town of Los Gatos to CaIPERS, although designated as employee contributions, are being paid by the Town of Los Gatos in lieu of contributions by
the employees who are members of Ca1PERS. III. That the 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 Ca1PERS. IV. That the Town of Los Gatos shall pay to Ca1PERS the contributions designated as employee contributions from the same source of funds as used in
paying salary, thereby resulting in tax deferral of employee contributions. V. That the effective date for commencement of the pretax payroll deduction plan cannot be any earlier than
July 1, 1996, or the date the completed resolution is received and approved in Ca1PERS, whichever is later. VI. That the governing body of the Town of Los Gatos shall participate in
and adhere to requirements and restrictions of the pre-tax payroll deduction plan by reporting pre-tax payroll deductions when authorized by Ca1PERS for those employees of the above
stated Coverage Group(s) who have elected to participate in this plan. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 4th
day of December , 2000 by the following vote: COUNCIL MEMBERS: AYES: Randy Attaway, Steven Blanton, Sandy Decker, Steve Glickman, Mayor Joe Pirzynski. NAYS: None ABSENT: None ABSTAIN:
None SIGNED:/s/Joe Pirzynski MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: Is/Marian V. Cosgrove CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA