HomeMy WebLinkAboutResolution No. 08-7093 - Tax Deferral employee paid contributions to CALPERSRESOLUTION NO. 08-7093
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY FOR TAX
DEFERRAL ON EMPLOYEE PAID CONTRIBUTIONS TO THE CALIFORNIA PUBLIC
EMPLOYEES’ RETIREMENT SYSTEM.
WHEREAS, the governing body of the City of Downey 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 regarding 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(h)(2) IRC pursuant to the Resolution of the
Board of Administration would satisfy the legal requirements of section 414(h)(2); and
WHEREAS, the governing body of the City of Downey 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, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
HEREBY RESOLVE AS FOLLOWS:
1.That the City of Downey 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 its
employees 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.
2. That the contributions made by the City of Downey to the Public Employees’
Retirement System, although designated as employee contributions, are being paid
by the City of Downey in lieu of contributions by the employees who are members of
the Public Employees’ Retirement System.
3. That employees shall not have the option of choosing to receive the contributed
amounts directly instead of having them paid by the City of Downey to the Public
Employees’ Retirement System.
4. That the City of Downey 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.
5. That the amount of the contributions designated as employee contributions and paid
by the City of Downey 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 seq.).
RESOLUTION NO. 08-7093
PAGE TWO
6. That the contributions designated as employee contributions made by the City of
Downey 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.
SECTION 1. The City Clerk shall certify to the adoption of this Resolution.
APPROVED AND ADOPTED this 25TH day of November, 2008.
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ATTEST:
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KATHLEEN L. MIDSTOKKE, City 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 November, 2008, by
the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN :
Council Members: Bayer, Cartozian, Guerra, Trejo, Mayor Gafin
Council Member: None
Council Member: None
Council Member: None
KATHLEEN L. MIDSTOKKE, City Clerk