HomeMy WebLinkAbout2004-15 - Employer Pickup Payroll DeductionRESOLUTION NO. 2004-15
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, AUTHORIZING
EMPLOYER PICKUP RESOLUTION 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 ( 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): 70001, 74001,
75001 & 76001.
NOW, THEREFORE, BE IT RESOLVED:
SECTION 1. That the City of Newport Beach, California, 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
CAPERS 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.
SECTION 2. 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.
SECTION 3. 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.
SECTION 4. 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.
SECTION 5. 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.
SECTION 6. 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.
•
• PASSED AND ADOPTED by the governing body of the City of Newport Beach
this 24`h day of February, 2004.
MAYOR
ATTEST:
RETURN ADDRESS:
City Clerk
City of Newport Beach
3300 Newport Boulevard
PO Box 1768
Newport Beach, CA 92658 -8915
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 } as.
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. 2004 -15 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
24th day of February, 2004, and that the same was so passed and adopted by the following vote, to
wit:
Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway
Noes: None
Absent: Adams
Abstain: None
• IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 25th day of February, 2004.
(Seal)
•
Citv Clerk
Newport Beach, California