CC RESOLUTION 44074 407 - . ..1
Employer code: 0039
EMPLOYER PICKUP RESOLUTION
PRE -TAX PAYROLL DEDUCTION PLAN
FOR SERVICE CREDIT PURCHASES
(CONTRIBUTION CODE 14)
WHEREAS, the Board of Administration of the California Public Employees'
Retirement System (Ca1PERS) 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 El Segundo 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 CalPERS; and
WHEREAS, the City of El Segundo elects to participate in the pre -tax payroll deduction
plan for all employees in the following CalPERS coverage groups:
Miscellaneous 70002
Safety Police 75001
Safety Fire 74001
NOW, THEREFORE, BE IT RESOLVED:
I. That City of El Segundo 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 El Segundo to CalPERS, although
designated as employee contributions, are being paid by the City of El
Segundo in lieu of contributions by the employees who are members of
CalPERS.
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 El
Segundo to CalPERS.
W 4 V • • ei
IV. That the City of El Segundo shall pay to Ca1PERS 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 July 1, 1996, or the date the completed
resolution is received and approved in CalPERS, whichever is later.
VI. That the governing body of the City of El Segundo 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 Ca1PERS for
those employees of the above stated Coverage Groups who have elected to
participate in this plan.
PASSED AND ADOPTED by the governing body of the City of El Segundo this
7th dayof December 2004.
By
(Signature Official)'
Kelly McDowell, Mayor
(Title of Official)
RETURN ADDRESS:
350 Main Street
El Segundo, CA 90245
ATTEST:
I, Cindy Mortesen, City Clerk of the City of El Segundo, California, do hereby
certify that the whole number of members of the City Council of said City is five;
that the foregoing Resolution No. 4407 was duly passed and adopted by said
City Council, approved and signed by the Mayor, and attested to by the City
Clerk, all at a regular meeting of said Council held on the 16th day of November
2004, and the same was so passed and adopted by the following vote:
AYES: McDowell, Gaines, Boulgarides, Busch, Jacobson
NOES: None
ABSENT: None
ABSTAIN: None
Cindy Mo esen, City Clerk
Mark D.
nt -(7ty Attorney
FOR CALPERS USE ONLY
Pre -tax Payroll Deduction Plan Effective Date:
Approved By: Title:
MEMBER SERVICES DIVISION, Service Credit Section — Unit 830