HomeMy WebLinkAboutResolution No. 5459 RESOLUTION NO. 5459
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY,
DECLARING ITS INTENT TO IMPLEMENT AN ALTERNATIVE RETIREMENT
SYSTEM FOR PART -TIME EMPLOYEES, AUTHORIZING MANDATORY
RETIREMENT DEDUCTIONS FROM PART -TIME WAGES, AUTHORIZING
CITY -PAID EMPLOYER CONTRIBUTIONS TOWARD RETIREMENT
BENEFITS FOR PART -TIME EMPLOYEES, AND AUTHORIZING THE
CITY MANAGER TO EXECUTE AN AGREEMENT TO ESTABLISH AN
ALTERNATIVE RETIREMENT SYSTEM FOR PART -TIME EMPLOYEES.
WHEREAS, with the passage of the Omnibus Reconciliation Act of 1990 (OBRA
1990), Section 3121 of the Internal Revenue Code (IRC) and Section 11332 of
the Social Security Act (SSA), have been amended to require Social Security
coverage of state and local government part -time employees as of July, 1, 1991,
unless said employees are covered under a retirement system of the public
employer; and
WHEREAS, the Internal Revenue Service has issued proposed regulations
concerning mandated enrollment of part -time employees into Social Security or
an alternative retirement system of the public employer; and
WHEREAS, the City of Downey has determined that it would be cost effective
to enroll part -time employees in an alternative retirement system in lieu of
participating in Social Security; and
WHEREAS, pending the promulgation of final regulations, the proposed
regulations provide for a special transition period during which an employer
may delay actual implementation of an alternative retirement system for part -
time employees;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES RESOLVE AS
FOLLOWS:
SECTION 1. The City of Downey hereby declares its intent to implement an
alternative retirement system for part -time employees in lieu of participation
in Social Security.
SECTION 2. Effective on July 1, 1991, the City Manager is authorized to
implement mandatory payroll deductions for part -time employee wages in an
amount of up to 5% of earnings. City -paid contributions of up to 2.5% of
earnings shall be authorized as an employer contribution to a retirement system
for part -time employees. All such payroll deductions and employer contri-
butions shall be deposited by the City into a trust account for individual
employees. At such time that a third party retirement system is implemented
for part -time employees, all funds on deposit shall be transferred to each
individual employee's retirement system account.
SECTION 3. An agreement for an alternative retirement system covering
part -time employees, pursuant to Section 2 of this Resolution, shall remain in
effect only during the period that said retirement system is recognized under
Federal Law as an alternative program in lieu of participation in Social
Security. In the event that the Federal government mandates local government
participation in Social Security, regardless of the establishment of an
alternative retirement program, any agreement or program providing retirement
— benefits to part -time employees shall be suspended.
SECTION 4. The City Manager, or his designee, is hereby authorized to
execute an agreement with a third -party provider for the establishment of a
retirement system for all part -time employees.
SECTION 5. The City Clerk shall certify to the adoption of this
resolution and provide for the distribution thereof.
ATTEST:
r - N Mayor
At A
CiTty Clerk
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the
City Council of the City of Downey at a regular meeting thereof held on
the 25th day of June , 1991, by the following vote:
AYES: 5 Council Members: Boggs, Hayden, Brazelton, Cormack, Paul
NOES: 0 Council Members: None
ABSENT: 0 Council Members: None
C1ty Clerk
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