CC RES 2003-073 RESOLUTION NO. 2003-73
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES
AUTHORIZING PARTICIPATION IN THE 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 Rancho Palos Verdes 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 Rancho Palos Verdes elects to participate in the pre-tax payroll
deduction plan for all employees in the following CaIPERS coverage groups: 70001 (Misc.
Employees).
NOW THEREFORE BE IT RESOLVED:
1. That the City of Rancho Palos Verdes 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 purchase, thereby
resulting in tax deferral of employee contributions.
2. That the contributions made by the City of Rancho Palos Verdes to CaIPERS,
although designated as employee contributions, are being paid by the City of Rancho
Palos Verdes in lieu of contributions by the employees who are members of
CaIPERS.
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 Rancho Palos Verdes to
CaIPERS.
4. That the City of Rancho Palos Verdes shall pay to CaIPERS that contributions
designated as employee contributions from the same source of funds as used in
paying salary, thereby resulting in tax deferral of employee contributions.
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.
6. That the governing body of the City of Rancho Palos Verdes 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 - of Ran ho Palos Verdes
this 19th day of August 2003.
t.4)
Mayor
Attest:
.�y
City Clerk
State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )
I, JO PURCELL, City Clerk of the City of Rancho Palos Verdes, hereby certify
that the above Resolution No. 2003-73 was duly and regularly passed and adopted by the said
City Council at a regular meeting thereof held on August 19, 2003.
City Clerk
Resolution No. 2003-73
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