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.
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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