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HomeMy WebLinkAbout2007-62 - Tax Defer Member Paid Contributions to PERSRESOLUTION NO. 2007. 62 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH TO TAX DEFER MEMBER PAID CONTRIBUTIONS REPORTED TO THE BOARD OF ADMINISTRATION, CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (PERS). WHEREAS, the City of Newport Beach has the authority to implement the provisions of section 414(hX2) 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) IRC; and WHEREAS, the City of Newport Beach 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, BE IT RESOLVED: That the City of Newport Beach 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. Il. That the contributions made by the City of Newport Beach to the Public Employees' Retirement System, although designated as employee contributions, are being paid by the City of Newport Beach in the lieu of contributions by the employees who are members of the Public Employees' Retirement System. III. That 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 the Public Employees' Retirement System. IV. That the City of Newport Beach 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. V. That the amount of the contributions designated as employee contributions and paid by the City of Newport Beach 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 seg.). VI. That the contributions designated as employee contributions made by City of Newport Beach 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. Adopted on this 9th day of October, 2007. 5 & 1;; Z �, , " / Mayor ATTEST: 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. 2007 -62 was duly and regularly introduced before and adopted by the City Council of said City at aregular meeting of said Council, duly and regularly held on the 9th day of October 2007, and that the same was so passed and adopted by the following vote, to wit: Ayes: Curry, Selich, Webb, Daigle, Gardner, Mayor Rosansky Noes: None Absent: Henn Abstain: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 10th day of October 2007. (Seal) City Clerk Newport Beach, California