2008-134-Updating The Employer Pickup Pre-Tax Payroll Deduction Plan For Services Credit PurchasesRESOLUTION 2008 ~ 134
RESOLUTION OF TI-IE TOWN OF LOS GATOS
UPDATING THE EMPLOYER PICKUP PRE-TAX PAYROLL DEDUCTION .PLAN
FOR SERVICE CREDIT PURCHASES
EMPLOYER CODE; 0870
RESOLUTION OF TIIE TOWN OF LOS GATOS
EMPLOYER PICKUP RESOLUTION
PRE-TAX PAYROLL DEDUCTION PLAN
FOR SERVICE CREDIT PURCHASES
(CONTRIBUTION CODE 14)
WkIEREAS, the Board of Administration of the California Public Employees'
Retirement System (Ca1PERS) at the Api°il :1990 meeting approved apre-tax payca11 deduction plan
for service credit purchases under Internal Revenue Code (IRC) section 414 (h)(2}; and
WI->IEREAS, 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 merzibers of
Ca1PERS; and
WI-T1~RLAS, the "Down of Los Gates elects to participate in the pre-tax payroll
deduction. plan 1'or all employees in the tI711owing CalPERS coverage group(s):
All Miscellaneous
All .Safety
NOW THEREFORE, I3E IT RESOLVED;
I. That the Town of Los Gatos will irriplement 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 moan those contributions reported to Ca1PERS
which cct•e 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 oracle by the Town of Los Gatos to CaIPERS, although designated
as employee contributions, are being paid by the Town of Las 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
Cal PERS.
IV. That the Tawn of Los Gatos shall pay to Ca1PERS the contributions designated as
employee contributions from the same source of fiends 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 the date the completed resolution is received and approved in
CaIPERS, whichever is later.
VI. That the governing body of the Town o£ I,os 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.
VII. That this resolution replaces the Town of Los Gatos Resolution 2000-14? previously
adapted by the Tawn Council on December 4, 2,000.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos, California, held on the 1 Sch day of December, 2008 by the following vote:
COUNCIL IYIEMBERS:
AYES:
NAYS:
ABSENT; ~
ABSTAIN: ~ ~ ~ `_ ),~~;~_.
SIGNED; ~'~-~'
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERI~OF T,kIE TOWN OF LOS GATOS
LOS GA I{~S, CALIl~ O:I.~NIA