2017-047 - Tax Defer Member Paid Contributions - IRC 414(h)(2) Employer Pick-up for Elected OfficialsRESOLUTION 2017 -047
RESOLUTION TO TAX DEFER MEMBER PAID CONTRIBUTIONS — IRC 414(h)(2)
EMPLOYER PICK -UP
WHEREAS, the governing body of 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 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 Elected Officials who are members of the California Public Employees'
Retirement System:
NOW, THEREFORE, BE IT RESOLVED:
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 California Public Employees' Retirement System on behalf of all its employees or all its
employees in a recognized group or class of employment who are members of the California
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 California Public Employees'
Retirement System, 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 the California Public
Employees' Retirement System.
III. That 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 California Public Employees'
Retirement System.
IV. That the Town of Los Gatos shall pay to the California 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 California Public Employees' Retirement System on behalf of an employee
shall be the entire contribution required of the employee by the California Public Employees'
Retirement Law (California Government Code Sections 20000, et seq.).
VI. That the contributions designated as employee contributions made by Town of Los Gatos to the
California Public Employees' Retirement System shall be treated for all purposes, other than
taxation, in the same way that member contributions are treated by the California Public
Employees' Retirement System.
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Resolution 2017 -047 August 15, 2017
PASSED AND ADOPTED by the governing body of the Town of Los Gatos, California held on the 15th
day of August, 2017, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OFT T OF LOS GATOS
LOS GATOS, ORNIA
DATE: t—I tA- F—?
ATTEST:
ca'� `1v .
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
RETURN ADDRESS:
TipWt� Lt>s
FOR CALPERS USE ONLY
RESOLUTION TO TAX DEFER MEMBER PAID CONTRIBUTIONS - IRC 414(h)(2)
Approved by:
Title:
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Resolution 2017 -047 August 15, 2017