2000-078-Implementing The Provisions Of Section 414(H) (2) Of The Internal Revenue Code For Town Manager, Town Attorney, And Management Group I And IiRESOLUTION 2000 - 78
RESOLUTION OF THE TOWN OF LOS GATOS
IMPLEMENTING THE PROVISIONS OF SECTION 414 (h) (2) OF THE INTERNAL
REVENUE CODE FOR TOWN MANAGER, TOWN ATTORNEY, AND MANAGEMENT
GROUP I AND II
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 T'T 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 the Town Manager,
Town Attorney, and Management Group I & II 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
creditedto individual employee'saccountspursuanttoCalifornia Government Code Section
20691.
II. That the contributions made by the Town of Los Gatos tothe Public Employees' Retirement
System,. although designated as employee contributions, are being paid by the Town of Los
Gatos in lieu of contributions by the Town Manager, Town Attorney, and Management
Group I & II who are members of the Public Employees' Retirement .System.
III. That the Town Manager, Town Attorney, and.Management Group I & II .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 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 se .).
VI. Thatthe 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 Pirzynslci, Mayor Steven Blanton.
NAYS : None
ABSEN'T': Randy Attaway and Linda Lubeck
ABSTAIN.: None
SIGNET):
LOS GATOS, CALIFORNIA
ATTEST:
3
CLERK OP TIDE T0~1VIV OF S GATOS
LOS GATOS, C:ALI~'ORNIA
Actuarial 8~r"" ~ployer Services Division
P.O. Box 9 . i9
`\\ ,~i 'Sacramento, CA 94229-2709 - -
~~~ _ Telecommunications Device for the Deaf (916) 326 3240
Ca1PERS (916) 326-.3420 FAX (916) 326-3005
July 25, 2000
Mr. Gary'W. Rogers
Town of Los Gatos
Civic Center
110 E. Main Street
P.O. Bo=94.9
Los Gatos, CA 95031
Dear Ms. Robles:
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Employer Code #0870
Reply #o Section 115/CF
We 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'Internal Revenue Code on behalf of its Town Managers,
Town Attorney, Management Group I & 11, Confidential Employees, and Town'Employees
Association .represented positions. The effective date of this Resolution is June 19, :20.00.
The Resolution, as written, contains all the necessary information and is in .compliance with
the blarilcet 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,
Connie Fleming, RPS li
Compensation'Review Unit
Cc: Employer File
California Public Employees' Retirement System
Lincoln Plaza - 400 PStreet -Sacramento, CA 95814