R 4079RESOLUTION N0.4079
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE IMPLEMENTING THE
PROVISIONS OF INTERNAL REVENUE CODE SECTION
414(h)(2), FOR EMPLOYEE CONTRIBUTIONS TO THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM (PERS)
WHEREAS, the City of Arroyo Grande has the authority to implement the provisions of
section 414(h)(2) of the Internal Revenue Code (IRC); and
WHEREAS, the Board of Administration of the Public Employees' Retirement System
adopted, its resolution re 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 Arroyo Grande as 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 by the City Council of the City of Arroyo
Grande:
1. That the City of Arroyo Grande 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.
2. That the contributions .made by the City of Arroyo Grande to the Public
Employees' Retirement System, although designated as employee contributions,
are being paid by the City of Arroyo Grande in lieu of contributions by the
employees who are members of the Public Employees' Retirement System.
3. That the employees shall not have the options of choosing to receive the
contributed amounts directly instead of having them paid by the City of Arroyo
Grande to the Public Employees' Retirement System.
4. That the City of Arroyo Grande 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.
RESOLUTION N0.4079
PAGE 2
5. That the amount of the contributions designated as employee contributions and
paid by the City of Arroyo Grande 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 seq.).
6. That the contributions designated as employee contributions made by the City of
Arroyo Grande 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.
On motion by Council Member Fellows, seconded by Council Member Guthrie, and on
the following roll call vote, to wit:
AYES: Council Members Fellows, Guthrie, Arnold, Costello, and Mayor Ferrara
NOES: None
ABSENT: None
The foregoing Resolution was passed and adopted this 13~h day of May 2008.
TIN~THY J, f~R1(AEL, CITY ATTORNEY
OFFICIAL CERTIFICATION .
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the. attached
Resolution No. 4079. is a true, full, and correct copy of said Resolution passed and
adopted at a regular meeting of the City Council of the City of Arroyo Grande on the 13~'
day of May 2008.
WITNESS my hand and the Seal of the City of Arroyo Grande afFxed this 14~' day of
May 2008.
KELLY ETM RE, CITY CLERK