HomeMy WebLinkAboutCC Reso No 2008-112
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RESOLUTION NO. 2008-112
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE ADOPTING A PRE-TAX PAYROLL DEDUCTION PLAN FOR
SERVICE CREDIT PURCHASES (CONTRIBUTION CODE 14)
WHEREAS, the Board of Administration of the California Public Employees'
Retirement System (CaIPERS) at the April 1996 meeting approved a pre-tax
payroll deduction plan for service credit purchases under Internal Revenue Code
(IRC) section 414(h)(2); and
WHEREAS, the City of Lake Elsinore 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 to those employees who are members of CaIPERS; and
WHEREAS, the City of Lake Elsinore elects to participate in the pre-tax
deduction plan for all employees in the following Calpers Coverage groups:
70004 Miscellaneous
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NOW, THEREFORE, THE CITY COUNCIL OF LAKE ELSINORE DOES
HEREBY RESOLVE:
I. That the City of Lake Elsinore will implement the provisions of IRC section
414(h) (2) by making employee contributions for service credit purchases
pursuant to the California State Government Code on behalf of its
employees who are members of CalPERS and who have made a binding
irrevocable election to participate in the pre-tax payroll deduction plan.
"Employee contributions" shall mean those contributions reported to
CalPERS which are 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 made by the City of Lake Elsinore to CaIPERS,
although designated as employee contributions, are being paid by the City
of Lake Elsinore in lieu of contributions by the employees who are
members of CaIPERS.
III. That the employees shall not have the option of choosing to receive the
contributed amounts directly instead of having them paid by the City of
Lake Elsinore to CaIPERS.
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IV. That the City of Lake Elsinore shall pay to CalPERS the contributions
designated as employee contributions from the same source of funds 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 by CaIPERS.
VI. That the governing body of the City of lake Elsinore 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
CalPERS for those employees of the above stated Coverage Groups(s)
who have elected to participate in this plan.
PASSED, APPROVED AND ADOPTED this 23rd day of December, 2008 by the
following v e:
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-::. :" CAROL COWLEY, INTERIM
//:~cJ:rY O~.LAKE ELSINORE
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Y CLERK
APPROVED AS TO FORM:
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B RBARA l IB lD, CITY ATTORNEY
CITY OF lAKE ELSINORE
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STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
CITY OF LAKE ELSINORE
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I, CAROL COWLEY, Interim City Clerk of the City of Lake Elsinore,
California, hereby certify that Resolution No. 2008-111 was adopted by the City
Council of the City of Lake Elsinore at a regular meeting held on the 23rd day of
December 2008, and that the same was adopted by the following vote:
AYES: Mayor Robert Magee, Mayor Pro Tern Melissa Melendez,
Councilmember Amy Bhutta, Council member Thomas Buckley'
NOES: None
ABSENT: Councilmember Daryl Hickman
ABSTAIN: None
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CAROL COWLEY
INTERIM CITY CLERK '
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