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HomeMy WebLinkAboutResolution No. 97-C069RESOLUTION NO. 97-C69 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 FOR LOCAL POLICE MEMBERS 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 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. Section 2. 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 20000, 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. 9 0 PASSED, APPROVED AND ADOPTED this 19' day of May, 1997 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 19' day of May, 1997 by the following vote of the Council: AYES COUNCIL MEMBERS: HARDISON, STANFORD, ROCHA, BEEBE, MADRID NOES COUNCIL MEMBERS: NONE ABSENT COUNCIL MEMBERS: NONE CITY CLERK