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HomeMy WebLinkAbout2008-78 - Employer Pickup PreTax Payroll DeductionRESOLUTION NO. 2008- 78 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING EMPLOYER PICKUP 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 Newport Beach 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 Newport Beach elects to participate in the pre -tax payroll deduction plan for all employees in the following CaIPERS Coverage Group(s): All Miscellaneous and All Safety Groups NOW, THEREFORE, BE IT RESOLVED: That the City of Newport Beach 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 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. II. That the contributions made by the City of Newport Beach to CaIPERS, although designated as employee contributions, are being paid by the City of Newport Beach 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 Newport Beach to CaIPERS. IV. That the City of Newport Beach shall pay to CaIPERS 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 Newport Beach 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 CaIPERS for those employees of the above stated Coverage Group(s) who have elected to participate in this plan. Adopted this 9th day of September, 2008 ATTEST: " !4�j&n I /i! , 444" City Clerk RETURN ADDRESS: City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 -2884 Mayor ...................... ................................................................ ............................... FOR CALPERS USE ONLY Pre -tax payroll deduction plan effective date: Approved By: Title: MEMBER SERVICES DIVISION, Service credit section -Unit 830 STATE OF CALIFORNIA } COUNTY OF ORANGE CITY OF NEWPORT BEACH } I, LaVonne M. Harkless, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing resolution, being Resolution No. 2008 -78 was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 9th day of September 2008, and that the same was so passed and adopted by the following vote, to wit; Ayes: Henn, Rosansky, Daigle, Curry, Webb, Gardner, Mayor Selich Noes: None Absent: None Abstain: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 10th day of September 2008. (Seal) City Clerk Newport Beach, California