CC Resolution No. 08-139 CalPERS credit purchasesP.esolution No. 08-139
Return to Ca/PERS -Unit 830
Employer code:
EMPLOYER PICKUI~ RESOLUTION
PRE-TAX PAYROLL DEDUCTION PLAN
FOR SERVICE CRECIIT PURCHASES
(CONTRIBUTIOIV CODE 14)
WHEREAS, the Board of Administration of the California Public Employees' Retirement System
(CaIPERS) at the April 1996 meeting approved apre-tax payroll deduction plan for service credit
purchases under Internal Revenue Code (IRC) section 414(h)(2); and
WHEREAS, the City of Cupertino {Employer} 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 CaIPERS; and
WHEREAS, the City of Cupertino {Employer} elects to participate in the pre-tax payroll deduction plan for
all employees in the following CaIPERS Coverage Group(s):
{Membership Coverage Group(s))
All Miscellaneous Coverage Groups
NOW, THEREFORE, BE IT RESOLVED:
I. That the City of Cupertino {Employer} 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 acre members of CaIPERS 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 CaIPERS 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 {Employer} to CaIPERS, although designated as
employee contributions, are being paid by the City of Cupertino {Employer} in lieu of contributions by
the employees who are members of CaIPERS.
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 {Employer) to CaIPERS.
IV. That the City of Cupertino {Employer} shall pay to CaIFERS 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
the date the completed resolution is received and approved by CaIPERS.
VI. That the governing body of the City of Cupertino {Employer) 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 CaIPERS for those employees of the abode stated Coverage Group(s) who have elected to
participate in this plan.
PASSED AND ADOPTED by the governing body of the Cite of Cupertino {Employer}
this 21st day of October, 2008. {year}
- -...
,~ ~ ..
- (Signature of Official)
City Clerk -~ ~ ~~1
(Title of Offi ial)
RETURN ADDRESS:
L ote Members of tt~e_ C_ ty Council
AYES: Sandovol, Nf:-a.cney, Sactoro, Wang, Wong
NOES : None+
ABSENT: None
ABSTAIN: Nome
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FOR CALPERS USE? ONLY
Pre-tax payroll deduction plan effective date:
Approved By:
Title:
MEMBER SERVICES DIVISION, Service credit section-Unit 830