CC Resolution No. 9900 RESOLUTION NO. 9000
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
PROVIDING FOR A PRE-TAX PAYROLL DEDUCTION PLAN FOR SERVICE
CREDIT PURCHASES
WHEREAS, the Board of Administration of the California Public Employees'
Retirement System (CalPERS) at the April 1996 meeting approved a pre-tax payroll
deduction plan for service credit purchases under Internal Revenue Code section
414(h)(2); and
WHEREAS, the City of Cupertino has the authority to implement the provisions of
IRC section 414(h)(2) and has determines 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 Cupertino elects to participate in the pre-tax payroll
deduction plan for all Miscellaneous employees (70001,70002).
NOW, THEREFORE, BE IT RESOLVED:
I. That the City of Cupertino will implement the provision 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 member of CalPERS and
who have made a binding irrevocable election to participate in the pre-tax payroll
deduction plan. "Employee Contribution" 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 .Cupertino to CalPERS, although
designated as employee contributions, are being paid by the City of Cupertino on 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 Cupertino to CalPERS.
IV. That the City of Cupertino shall pay to CalPERS 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 at CalPERS, whichever is later.
VI. That the governing body of the City of Cupertino 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 CalPERS for those employees of the above stated
Coverage Group who have elected to participate in this plan.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of
Cupertino does hereby adopt this Resolution this 7th day of July, 1997, by the following:
VOTE
AYES:
NOES:
ABSENT:
ABSTAIN:
MEMBERS OF THE CITY COUNCIL
Burnett, Chang, Dean, Sorensen, Mayor Bautista
None
None
None
ATTEST:
APPROVED:
h~y;~', City of C-u-p~rtih'~ ~