1998-174-Implementing The Provisions Of Section 414 Of The Internal Revenue Code For Police Officers And Police SargentsRESOLUTION 1998 - 174
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
IMPLEMENTING THE PROVISIONS OF SECTION 414 (h) (2) OF THE
INTERNAL REVENUE CODE FOR POLICE OFFICERS AND POLICE SERGEANTS
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 Employees' 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, that the
implementation of the provisions of Section 414 (i) (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) IRC 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 Police Officers and
Police Sergeants 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 Police Officers and Police Sergeants who are members of
the Public Employees' Retirement System.
1
III. That Police Officers and Police Sergeants 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 Sections 20000, et sea.).
VI. 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 2nd day of November, 1998 by the following vote:
COUNCIL MEMBERS:
AYES: Randy Attaway, Joanne Benjamin, Steven Blanton, Jan Hutchins,
Mayor Linda Lubeck.
NAYS: None
ABSENT: None
ABSTAIN: None
/_.
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK OF THE TOWN OF LOS, ALTOS
LOS GATOS, CALIFORNIA
2
APPENDIX A
POLICE SERGEANT RANGE STEP TABLE
EFFECTIVE DECEMBER 13, 1998
10/22198, 12:08 PM
FLSA
RANGE
I
STEP STEP
STEP
STEP
STEP
POLICE SERGEANT - MANAGEMENT
I OVERTIME
721
1 2
3
4
5
AS OF DECEMBER 13, 1998
I **
base pay $
28.68 $ 30.11 i $
31.62 $
33.20 $
34.86
LONGEVITY PAY
Fifteen year+
yes
2.50%
$
0.72 1 $ 015 $
0.79 $
0.83 $
0.87
Twenty years +
yes
5.00%
1 $
1.43 1 $ 1.51 $
1.58 $
1.66 $
1.74
(must have education incentive)
I
-
EDUCATION INCENTIVE PAY
!
-
intermediate Post
yes
1 2.109%.
$
0.60 ! $ 0.63 1 $
0.66 1 $
0.70, -$0.
7-
0.73
Advance Post
yes
i 3.50%
1 $
1.00 $ 1.05 $
1.11 1 $
1.16 $
1.22
(6130 requalify)
I
SPECIAL PAYS
Traffic Coordinator
yes
5.00%
$
1.43 $ 1.51 $
1.58 1 $
1.66 $
1.74
Detective
Personnel & Training
yes
yes
5.00%
5.00%
i
. $
$
1.43 $ 1.51 $
1.43 ! $ 1.51 $
1.58 j $
1.58 1 $
1.66 $
1.66 $
1.74
1.74
(must have PAF)
BILINGUAL PAY
1 !
1
(spanish /english only)
yes
2.50%
$
0.72 $ 0.75 I $
0.79 1 $
0.83 $
0.87
BASE OVERTIME RATE
150%
$$
43.02 $ 45.17
$
47.43 $
49.80 $
52.29
CALL BACK PAY
i
I
Watch tlwork prior night 4hr min
ns
III
150%
$172.09 $180.67
$189.74 $199.21 $ 209.17
Off duty Judical 3hr min
Il9
150%
$129.07 j $135.50
$142.30 $149.41 '': $156.88
Meeting with 2 week notice t hr min
150%
$
43.02 $ 45.17
1 $
47.43 1 $
49.80 $
52.29
10/22198, 12:08 PM
APPENDIX A
POLICE SERGEANT RANGE STEP TABLE
EFFECTIVE DECEMBER 26, 1999
10/22/98, 12:08 PM
FLSA
RANGE-!
STEP !
STEP I
STEP
STEP
STEP
POLICE SERGEANT •- MANAGEMENT
! OVERTIME!
721
1
2
3
5
AS OF DECEMBER 26, 1999
base pay
29.33 '', $
30.79 j $
_�4
32.33 ! $
33.95 !: $
35.65
LONGEVITY PAY
I
Fifteen year+
yes
2.50%
1 $
0.73
0.81 $
0.85 j $
0.89
Twenty years +
(must have education incentive)
:..;
EDUCATION INCENTIVE PAY
Intermediate Post
! yes
_
2.50%
I $
0.73 $
0.77 j $
0.81 i $
0.85 $
0.89
Advance Post
yes
5.00%
$
1.47 $
1.54 ! $
1.62 $
1.70 $
1.78
(6/30 requalify)
SPECIAL PAYS
�
i
',
Traffic Coordinator
yes
5.00%
i $
1.47 ! $
1.54 j $
1.62 $
1.70 $
1.78
Detective
5.00%
$
1.47 $
1.54 $
1.62 $
1.70 1 $
1.78
Personnel & 7reining
yes
5.00%
j
1.47 $
1.54 $
1.62 $
1.70 $
1.78
(must have PAF)
I
BILINGUAL PAY
(spanish /english only)
yes
2.50%
$
0.73 $
0.77 $
0.81 $
0.85 1 $
0.89
BASE WERTIME_RATE
150%
$
43.99 $
46.18 $
48.50 $
50.92 $
53.47
CALL BACK PAY
-
Watch Vwork prior night 4hr min
Off duty judical 3hr min
n4 1
Os 1
150%
150%
$175.96 $184.74 $194.00 1 $ 203.69 $ 213.88
$131.97 $138.55 $145.50 $152.77 I $160.41
Meeting with .2 week notice 1 hr min
i R4
150%
$
43.99 $
46.18 $
48.50 $
50.92 1 $
53.47
10/22/98, 12:08 PM
APPENDIX A
POLICE SERGEANT RANGE STEP TABLE
EFFECTIVE JUNE 25, 2000
10/22/98, 12:07 PM
FLSA
RANGE
"
STEP STEP
STEP STEP
STEP
POLICE SERGEANT - MANAGEMENT
AS OF JUNE 25, 2000
I OVERTIME I
721 1
base pay', $
1 2
29.99 $ 31.48 $
3
33.06 $
4
34.71 $
5
36.45
LONGEVITY PAY
Fifteen year+
yes
2.50%
% $
0.75 $ 0.79 $
0.831-6-.87 $
0.87 ! $
0.91
Twenty years +
yes
5.00 %;
$
1.50 $ 1.57 $
1.65 !; $
1.74 $
1.82
(must have education incentive)
EDUCATION INCENTIVE PAY
',.
Intermediate Post
yes
2.50%
$
0.75 ! $ 0.79 ! $
0.83 1 $
0.87 ' $
0.91
Advance Post
I yes
5.00%
$
1.50 $ 1.57 $
1.65 $
1.74 $
1.82
(6/30 requalify)
SPECIAL PAYS
j
Traffic Coordinator
Detective _
yes
1 yes
5.00%
5.00%
$
''. $
1.50_'! $ 1.57 $
1.50 j $ 1.57 $
1.65 !' $
1.65 $
1.74 $
1.74 $
1.82
1.82
Personnel & Training
yes '
5.00%
! $
_
1.50 I $ -57$
1.65 $
1.74 ! $
1.82
(must have PAF)
BILINGUAL PAY
-
--.-j-
(spanish /engiish only)
yes ''.
22.50%
$
0.75 $ 0.79 $
0.83 $
-0.87-1 $
0.9_1_
BASE OVERTIME RATE
150%
$
44.98
$ 47.22 $
49.59 $
52.07 1 $
54.67
CALL BACK PAY'
Watch 1 /work prior night 4hr min
_
,1q
1500/6
--
$179.92
$188.89 ! $198.37 $ 208.28 $ 218.69
Off duty judical 3hr min
II4
150%
$134.94
$141.67 1 $148.78 $156.21
I $164.02
Meeting with 2 week notice 1 hr min
n4
150%
j $
44.98
$ 47.22 $
49.59T$
52.07 j $
54.67
10/22/98, 12:07 PM
=PERS
Actuarial & Employer Services Division
P.O. Box 942709
Sacramento, CA 94229 -2709
Telecommunications Device for the Deaf - (916) 326 -3240
(916) 326 -3420 FAX (916) 326 -3005
November 18, 1998
Gary W. Rogers
Personnel Manager
Town of Los Gatos
110 E. Main Street
Los Gatos, CA95031
Dear Mr. Rogers:
We are in receipt of the Town of Los Gatos' Resolution No. 1998 -174 to implement the provision
of Section 414(h)(2) of the Internal Revenue Code on behalf of its employees (Police Officers and
Police Sergeants) who are members of CalPERS. This resolution was passed and adopted by the
Town Council of the Town of Los Gatos on November 2, 1998.
The resolution as written contains all the necessary information and is in compliance with the
blanket ruling and resolution provided to Ca1PERS by the Internal Revenue Service. This
resolution allows for the conversion of contributions from an after -tax to a pre -tax basis only for
CAPERS members in the Police Officer and Police Sergeant classifications.
Should you have any questions regarding this matter, please contact me at (916) 558 -4169.
Sincerely,
ema�)Ai)
Lois Giles
Retirement Program Specialist
Compensation Review Section
cc: David F. Tatlock, Supervisor
Mbrshp & Payroll Review
PC:PreTaxRcso0870
California Public Employees' Retirement System
Lincoln Plaza - 400 P Street - Sacramento, CA 95814