HomeMy WebLinkAboutResolution No. 10-C95RESOLUTION NO. 10-C95
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA TO TAX
DEFER EMPLOYER PAID MEMBER CONTRIBUTIONS — IRC 414(h)(2)
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) IRC on September 18, 1985; and
WHERAS, 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, 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 all employees who are members of the Public Employees'
Retirement System.
NOW THEREFORE, be it resolved that:
1. 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 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 Azusa to the Public Employees'
Retirement System, although designated as employee contributions, are being
paid by the City of Azusa in lieu of contributions by the 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
Azusa to the Public Employees' Retirement System.
4. That 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.
5. That the amount of the contributions designated as employee contributions
and paid by 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 sections 20000, et seg.).
That the contributions designated as employee contributions made by _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.
7. That the Deputy City Clerk shall certify the adoption of this resolution.
PASSED, APPROVED AND ADOPTED this 6th day of December 2010.
OSEPH R. ROCHA, MAYOR
I HEREBY CERTIFY that the foregoing Resolution was duly passed by the City Council of
the City of Azusa at a regular meeting thereof held on the Oh day of December 2010.
AYES: COUNCILMEMBERS: GONZALES, CARRILLO, HANKS, MACIAS, ROCHA
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
AMNDOZ, CITYCLEVA