R 3733
RESOLUTION NO. 3733
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE ELECTING TO ADOPT THE PRE-
TAX PAYROLL DEDUCTION PLAN FOR SERVICE
CREDIT PURCHASES
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 Council of. the City of Arroyo Grande 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 Arroyo Grande elects to participate in the pre-tax payroll
deduction plan for all employees in the following CalPERS coverage groups:
All Miscellaneous Coverage Groups
All Safety Coverage Groups
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 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 CalPERS 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 CalPERS 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.
2. That the contributions made by the City to CaIPERS. aitt10ugh designated as
employee contributions. are being paid by the City in lieu of contributions by the
employees who are members of CaIPERS.
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.
4. That the City shall pay to CalPERS 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.
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.
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RESOLUTION NO. 3733
PAGE 2
6. That the governing body of the City shall participate in and adhere to
requirements and restrictions of the pre-tax payroll deductions plan by reporting
pre-tax payroll deductions when authorized by CaIPERS for those employees of
the above stated Coverage Groups who have elected to participate in this plan.
On motion by Council Member Lubin, seconded by Council Member Dickens, and on
the following roll call vote, to wit:
AYES: Council Members Lubin, Dickens, Runels, Costello and Mayor Ferrara
NOES: None
ABSENT: None
the foregoing Resolution was passed and adopted this 10th day of February, 2004.
RESOLUTION NO. 3733
PAGE 3
ATTEST:
E, ADMINISTRATIVE SERVICES DIRECTOR!
DEPUTY CITY CLERK
APPROVED AS TO CONTENT:
~~::CITY MANAGER
APPROVED AS TO FORM:
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RESOLUTION NO. 3733
OFFICIAL CERTIFICATION
I, KELLY WETMORE, Director of Administrative Services/Deputy City Clerk of
the City of Arroyo Grande, County of San Luis Obispo, State of California, do
hereby certify under penalty of pe~ury, that Resolution No. 3133 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 10th day of February, 2004.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 12th
day of February, 2004.
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I~ - Y ( I .. c,/;1L-
KELLY ET ORE, DIRECTOR OF ADMINISTRATIVE SERVICESI
DEPUTY CITY CLERK
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