Resolution - 2012-54RESOLUTION NO.2012-54
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, CALIFORNIA, TO TAX DEFER MEMBER PAID
CONTRIBUTIONS TO THE CALIFORNIA PUBLIC EMPLOYEES'
RETIREMENT SYSTEM IN ACCORDANCE WITH INTERNAL
REVENUE CODE SECTION 414(h)(2)
WHEREAS, the governing body of the City of West Covina has the authority to
implement the provisions of section 414(h)(2) of the Internal Revenue Code (IRC); and
WHEREAS, the City of West Covina 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
California Public Employees' Retirement System.
NOW, THEREFORE,, the City Council. of the City of West Covina does resolve,
determine and order as follows:
SECTION 1. That the City of West Covina will implement the provisions of section
414(h)(2) .of the Internal Revenue Code by making employee contributions. pursuant to
California Government Code Section 20691 to the California Public Employees' Retirement
System on behalf of: all its employees who are members of the California Public Employees'
Retirement System. "Employee contributions" shall mean those contributions to the Public
Employees' Retirement System that are deducted from the salary of employees and are credited
to individual employee's accounts pursuant to California Government Code section 20691.
SECTION 2. That the contributions made by the City of West Covina to the California
Public Employees' Retirement System, 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
the California 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 of West Covina to the
California Public Employees' Retirement System.
SECTION 4. That the City of West Covina shall pay to the California 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 of West Covina to the California Public Employees' Retirement System on
behalf of an employee shall be the entire contribution required of the employee by the California
Public Employees' Retirement Law (California Government Code Sections 20000, et seq.).
SECTION 6. That the contributions designated as employee contributions made by the
City of West Covina to the California Public Employees' Retirement System shall be treated for
all purposes, other than taxation, in the same way that member contributions are treated by the
California Public Employees' Retirement System.
APPROVED AND ADOPTED on this 171h day of July, 2012.
Q # MMichael Touhey
ATT T:
CitClerk
Resolution No. 2012-54
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 held thereof on the 17th day of July, 2012 by the following vote
of the City Council:
AYES: Herfert, Sanderson, Sotelo, Sykes
NOES: None
ABSENT: Touhey
ABSTAIN: None
iy Clerk Laurie Carrico
APPROVED AS TO FORM:
AAttomeyA(mold Alvarez-Glasman