2000-080-Implementing The Provisions Of Section 414 (H) (2) Of The Internal Revenue Code For Tea Represented Positions.RESOLUTION 2000 - 80.
RESOLUTION OF THE TOWN OF LOS GATOS
IMPLEMENTING THE PROVISIONS OF SECTION 414 (h) {2) OF THE INTERNAL
.REVENUE CODE FOR TEA REPRESENTED POSITIONS
WHEREAS, the Town of Los Gatos has the authority to implement the provisions
of Section 4.14 (h) (2) of he 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, 198:5; 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 making employee contributions pursuant to California Government Code
Section 20691 to the Public Employees' Retirement System on behalf of Town Employee
Association 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 the Public Employees' Retirement
System, although designated as employee contributions, are being paid by the Town of Los
Gatos in lieu of contributions by Town Employee Association represented employees who
are megnbers of the Public Employees' Retirement System.
III. That Town Employee Association 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.
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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 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 sea- ).
VL 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 19t" day of June, 2000 by the .following vote:
COUNCIL MEMBERS:
AYES: Jan Hutchins, Joe Pirzynski, Mayor Steven Blanton
NAYS: None
ABSENT: Randy Attaway and Linda Lubeclc
ABSTAIN: None
SIGNED:
.LOS GATOS,
.ATTEST:
~~
CLERK OF fHE TOWN OF S GATOS
LOS' CBATOS, CALIFORNIA
ORNIA
Actuarial y~-employer Services Division
P.O. Box ~S 09
1 ~~i' Sacramento, CA 94229-2709 -
_ Telecommunications Device for the Deaf - (916) 326 3240
CaIPERS {916) 326-3420 FAX (918) 326-3005
July 25, 2000
Mr. Gary W. Rogers
Town of :Los Gatos
Civic Center
110 E. Main Street
P.O. Bo 949
Los Gatos, CA 95031
Dear Ms. Robles:
C' c.~-~ze~ °~~ ~'~l~
'~~ ~~
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~~~~
Employer Code #0870
Reply to Section 115/CF
1Ne are in receipt of Town of Los Gatos' Resolutions No. 2000 78, 2000-80, and 2000-82 to
implement Section 414'(h)(2) of the lnternai Revenue Code on behalf of its Town Managers,
Town .Attorney, Management Group I & II, Confidential Ernpioyees, and Town Employees
Association represented ,positions. The effective date of this Resolution is June 19, 2000.
The Resolution., as written, contains all the necessary information and is in compliance with
the blanket ruling .and .resolution provided to CaIPERS by the Internal Revenue Service..
Should you have.any questions regarding this matter, please give me a call at (.916) 558-
4045.
Sincerely.,
c.~
~~,.'.~
:Connie Fleming, RPS ll
Compensatvon Review Unit
Cc: Employer File
California Public Employees' Retirement System
Lincoln Plaza - 400 PStreet -Sacramento, CA 95814