HomeMy WebLinkAboutRES NO 63-97(1)
Return to CaIPERS - Unit 830
Employer code: 0036 ,
EMPLOYER PICKUP RESOLUTION 0 6 3;" 9 7 [I)
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 Bakersfield {Employer} 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 Bakersfield {Employer} elects to participate in the pre-tax payroll deduction plan
for all employees in the following CalPERS Coverage Group(s):
{Membership Coverage Group{s)}
All Miscellaneous and all Safety coverage groups
NOW, THEREFORE, BE IT RESOLVED:
I. That the City of Bakersfield {Employer} 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.
II. That the contributions made by the City of Bakersfield {Employer} to CaIPERS, although designated
as employee contributions, are being paid by the City of Bakersfield {Employer} in lieu of contributions
bv the employees wh~. are members of CaIPERS.
III. 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 Bakersfield {Employer} to CaIPERS.
IV. That the City of Bakersfield {Employer} 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.
V. That the effective date for commencement of the pre-tax payroll deduction plan cannot be any earlier than
the date the completed resolution is received and approved by CaIPERS.
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VI. That the governing body of the City of Bakersfield (employer) 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 CalPERS for those employees of the above stated
Coverage Group(s) who have elected to participate in this plan.
I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Council of the
City of Bakersfield at a regular meeting thereof held on January 30, 2008, by the following vote:
APPROVED: JAN 3 0 Z008
HARV L. L
MAYOR of the City of Bakersfield
RETURN ADDRESS:
CITY OF BAKERSFIELD
_ 1501 TRUXTUN AVENUE
BAKERSFiElD, CA 93301
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FOR CALPERS USE ONLY
Pre-tax payroll deduction plan effective date:
Approved By: Title:
MEMBER SERVICES DIVISION, Service credit sectlon-UnJt 830
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