Resolution - 2008-70RESOLUTION NO.2008-70
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, CALIFORNIA, AUTHORIZING PRE-TAX PAYROLL
DEDUCTION PLAN FOR SERVICE CREDIT PURCHASES
(CONTRIBUTION CODE 14)
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 (IRC) section 414(h)(2); and
WHEREAS, the City of West Covina 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 CalPERS; and
WHEREAS, the City of West Covina elects to participate in the pre-tax payroll deduction
plan for all employees in the following CalPERS Coverage Group(s):
All Miscellaneous and all Safety Coverage Groups
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of West
Covina that:
SECTION 1. That the City of West Covina 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 are members of CalPERS 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 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.
SECTION 2. Than the contributions made by the City of West Covina to CalPERS,
although designated as employee contributions, are being paid by the City of West Covina in lieu
of contributions by the employees who are members of CalPERS.
SECTION 3. 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 West Covina to
CalPERS.
SECTION 4. That the City of West Covina shall pay to CAPERS 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.
SECTION 5. 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
CalPERS.
SECTION 6. That the governing body of the City of West Covina 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(s) who have elected to participate in this plan.
APPROVED AND ADOPTED on this 18th day of November, 2008.
lArw
AT E T: Mayor Sherri Lane
_;.J� A
City Clerk La t rie Carric6;; ;1
Resolution No. 2008-70
Page 2
I, LAURIE CARRICO, CITY CLERK of the City of West Covina, California, do hereby certify
that the foregoing resolution was duly adopted by the City Council of the City of West Covina,
California, at a regular meeting thereof held on the 18th day of November, 2008, by the following
vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN
Hernandez, Sanderson, Touhey, Lane
None
Herfert
None
APPROVED AS TO FORM:
4�* 47 4 -_
City Attorney v Arnold Alvarez-Glasman
RETURN ADDRESS:
City of West Covina
1444 West Garvey Ave.
West Covina, CA 91793
City Clerk L urie Carrico
FOR CALPERS USE ONLY
Pre-tax payroll deduction plan effective date:
Approved By:
Title:
MEMBER SERVICES DIVISION, Service credit section -Unit 830