HomeMy WebLinkAboutResolutions - No. 2008-248RESOLUTION NO. 2008-248
A RESOLUTION OF THE LODI CITY COUNCIL
ALLOWING EMPLOYEES TO PURCHASE CALPERS
SERVICE CREDITS WITH PRE-TAX PAYROLL
DEDUCTIONS
WHEREAS, the Board of Administration of California Public Employees'
Retirement System (CaIPERS) 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 Lodi has the authority to implement the provision 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 member of CaIPERS;
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
approve the attached CaIPERS resolution allowing City of Lodi employees to purchase
CaIPERS service credits with pre-tax payroll deductions.
Date: December 17, 2008
I hereby certify that Resolution No. 2008-248 was passed and adopted by the
Lodi City Council in a regular meeting held December 17, 2008, by the following vote:
AYES: COUNCIL MEMBERS — Hitchcock, Johnson, Katzakian, Mounce,
and Mayor Hansen
NOES: COUNCIL MEMBERS— None
ABSENT: COUNCIL MEMBERS— None
ABSTAIN: COUNCIL MEMBERS — None
2008-248
DI JOHL
City Clerk
Return to CaIPERS — Unit 830
Employer Code: 0626
EMPLOYER PICKUP RESOLUTION
PRE-TAX PAYROLL DEDUCTION PLAN
FOR WEVICE 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 (RC)
section 414(h)(2); and
WHEREAS, the City of Lodi has the authority to implement the provision 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 member of CaIPERS; and
WHEREAS, the City of Lodi elects to participate in the pre-tax payroll deduction plan
for all members in the following CaIPERS coverage group(s):
Local Safety Employees
Local Miscellaneous Employees
NOW, THEREFORE, BE IT RESOLVED:
That the City of Lodi will implement the provisions of 1RC 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 CaIPERS 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 CaIPERS 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.
11. That the contributions made by the City of Lodi to CaIPERS, although
designated as employee contributions, are being paid by the City of Lodi in lieu
of contributions by the employees who are members of CaIPERS.
HI. 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 Lodi to
CalPERS.
1V. That the City of Lodi shall pay to CaIPERS the contributions designated as
employee contributions for 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 July 1, 1996, or the date the completed resolution is
received and approved in CaIPERS, whichever is later.
VI. That the governing body of the City of Lodi shall participate in and adhere to
requirement and restrictions of the pre-tax payroll deduction plan by reporting
pre-tax payroll deductions when authorized by CaIPERS for those employees
of the above stated Coverage Group(s) who have elected to participate in this
plan.
PASSED AND ADOPTED by the governing body of the City of Lodi this 17th day of
December, 2008.
BY
RETURN ADDRESS:
City of Lodi
Attn: Human Resources
221 W. Pine St.
Lodi, CA 95240
Blair Kin
City Manager
************************************************************************************************
FOR CALPERS USE ONLY
Pre-tax Payroll Deduction Plan Effective Date:
Approved by: 1 Title:
MEMBER SERVICES DIVISION, Service Credit Section — Unit 830