Res 09-039
RESOLUTION NO. 09-039
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA,
APPROVING THE IMPLEMENTATION OF PROVISIONS OF SECTION 414(h)(2) OF
THE INTERNAL REVENUE SERVICE CODE ALLOWING PRE-TAX STATUS OF
EMPLOYEE CONTRIBUTIONS TO CALPERS
WHEREAS, the City of Poway has the authority to implement the provisions of
section 414(h)(2) of the Internal Revenue Service 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 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 by the City Council of the City of Poway
as follows:
1. That the City of Poway 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 Poway to the Public
Employees' Retirement System, although designated as employee
contributions, are being paid by the City of Poway in lieu of contributions
by its employees who are members of the Public Employees' Retirement
System.
3. That employees shall not have the option of choosing to receive the
contributed amounts directly instead of having them paid by the City of
Poway to the Public Employees' Retirement System.
4. That the City of Poway 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 #09-039
Page 2
5. That the amount of the contributions designated as employee
contributions and paid by the City of Poway 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 City
of Poway 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.
PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway
at a regular meeting this 16th day of June, 2009.
Ub1, J \ 'V'~/
Don Higginson, Mayor .
-
ATTEST:
!
)~~-
/ liMa/A. Troyan, MMC
v/ Cit(Clerk, City of Poway
STATE OF CALIFORNIA )
)SS
COUNTY OF SAN DIEGO )
I, Linda A. Troyan, City Clerk of the City of Poway, do hereby certify under
penalty of perjury that the foregoing Resolution No. 09-039 was duly adopted by the
City Council at a meeting of said City Council held on the 16th day of June, 2009, and
that it was so adopted by the following vote:
AYES:
Cunningham, Boyack, Kruse, Higginson
NOES:
None
ABSENT:
Rexford
DISQUALIFIED:
None
~.-:Z ~.
! /.j:ifid~troyan, MMC
l,.../" City Clerk, City of Poway