CC - 2008-77 - Implementing Provisions of Section 414(h)(2) of the Internal Revenue CodeRESOLUTION: 2008-77
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
COUNTY OF LOS ANGELES, STATE OF. CALIFORNIA, IN THE MATTER OF
IMPLEMENTING PROVISIONS OF SECTION 414(h)(2) OF THE INTERNAL
REVENUE CODE.
WHEREAS, the City of Rosemead 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 regarding section 414(h)(2) IRC on September 18, 1985;
and
WHEREAS, 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, the City of Rosemead 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 its employees who are
members of the Public Employees' Retirement System:
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD
HEREBY RESOLVES AS FOLLOWS:
That the City of Rosemead will implement the provisions of section 414(h)(2) IRC
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 salary of employees
and are credited to individual accounts pursuant to California Government Code
section 20691.
That the contributions made by the City of Rosemead to the Public Employees'
Retirement System, although designated as employee contributions, are being
paid by the City of Rosemead in lieu of contributions by the employees who are
members of the Public Employees' Retirement System.
III. That employees shall not have the option of choosing to receive the contributed
amounts directly instead of having them paid by the City of Rosemead to the
Public Employees' Retirement System.
IV. That the City of Rosemead 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.
V. That the amount of the contributions designated as employee contributions and
paid by the City of Rosemead 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 se g.
VI. That the contributions designated as employee contributions made by the City of
Rosemead 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.
PASSED, APPROVED AND ADOPTED this 18th day of November 2008.
v
John Tran
MAYOR
ATTEST:
U
loria Molleda
City Clerk
APPROVED AS TO FORM:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.
CITY OF ROSEMEAD )
1. Gloria Molleda, City Clerk of the City of Rosemead, do hereby certify that the
foregoing Resolution No. 2008-77 being:
A RESOLUTION'OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, IN THE MATTER OF
IMPLEMENTING PROVISIONS OF SECTION 414(h)(2) OF THE INTERNAL
REVENUE CODE.
was duly and regularly approved and adopted by the Rosemead City Council on the 18""'
of November 2008, by the following vote to wit:
Yes: Clark, Low. Nunez, Taylor, Tran
No: None
Abstain: None
Absent: None
Ca
_
Gloria Molleda
City Clerk
Cl