HomeMy WebLinkAboutResolution No. 96-C520
RESOLUTION NO. 96-052
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA,
CALIFORNIA, TO IMPLEMENT PROVISIONS OF INTERNAL REVENUE
CODE 414(h)(2) REGARDING EMPLOYEE PAID CONTRIBUTIONS TO
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
WHEREAS, the City Council of the City of Azusa 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) 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 Council of the City of Azusa 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:
Section 1. That the City Council of the City of Azusa will implement the provisions of section
414(h)(2) Internal Revenue Code by making employee contributions pursuant to California
Government Code section 20615.5 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 Code section 20615.5.
Section . That the contributions made by the City Council of the City of Azusa to the Public
Employees' Retirement System, although designated as employee contributions, are being paid
by the City Council of the City of Azusa in lieu of contributions by the employees who are
members of the Public Employees' Retirement System.
Section 3. That employees shall not have the option of choosing to receive the contributed
amounts directly instead of having them paid by the City Council of the City of Azusa to the
Public Employees' Retirement System.
Section 4. That the City Council of the City of Azusa 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.
Section 5. That the amount of the contributions designated as employee contributions and paid
by the City Council of the City of Azusa 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 Section 2----, et sea.)
Section 6. That the contributions designated as employee contributions made by the City Council
of the City of Azusa 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.
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PASSED, APPROVED AND ADOPTED this 15th day of: April , 1996
J,
MAYOR
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council
of the City of Azusa at a regular meeting thereof, held on the 15th day of April 1996
by the following vote of the Council:
AYES COUNCIL MEMBERS: Hardison, Madrid, Naranjo, Beebe, Alexander
NOES COUNCIL MENIBERS: None
ABSENT COUNCIL MEMBER$: None
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Fnance Department • 213 E Foothill Blvd. • P.O. Box 1395 • Azusa, CA 91702.1395
(818) 334.5125
CERTIFICATION OF COMPLIANCE WITH GOVERNMENT
CODE SECTION 7507
I hereby certify that in accordance with Section 7507 of the Government Code the future annual
costs as determined by the System Actuary and/or the increase in retirement benefit(s) have been
made public at a public meeting of the City Council of the City of Azusa on April 15, 1996 which
is at least two weeks prior to the adoption of the Resolution/Ordinance.
Date: April 15, 1996
PERS-CON-12A(ro .5/95)
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