SR-010996-6P
6P-
PE:smpoa 16 bancroft pms
Council Meeting: January 9, 1996
-
Santa MOnica, California JAN 0 9 1996
TO Mayor and City CouncIl
FROM: CIty Staff
SUBJECT Resolution to Implement ProvIsIon of the Santa Monica Police
AssOciatIon's Memorandum of Understanding Pertaining to Employee
Contributions to the Public Employees' Retirement System
INTRODUCTION
This report requests that Council adopt the attached Resolution which Implements a
provIsion of the Santa MOnica Police Association's (SMPOA) Memorandum of
Understanding (MOU) pertaining to employee contnbutlons to the PubliC Employees'
RetIrement System (PERSI
BACKGROUND
Under the terms of the recently negotiated MOU between the City of Santa Monica
and SMPOA, SMPOA employees now pay their own contrrbutlon to the Public
Employees Retirement System (PERS). The City agreed to Implement the prOVISions
of Section 414 (h) (2) of the Internal Revenue Code which allow that the employee
contnbutlons to PERS be treated as employer contrrbutlons for federal and state tax
purposes. In order to Implement this option, PERS reqUires that the City submit a
Resolution to that effect which has been adopted by City Council
6P-
JAN 0 9 1996
f
BUDGET/FINANCIAL IMPACT
There IS no financial Impact assocIated with the adoption of the attached Resolution
RECOMMENDA TION
It IS recommended that Council adopt the attached Resolution authonzlng the City to
contract with PERS for the PERS option which allows for the Implementation of
Section 414 (h) (2) of the Internal Revenue Code
Prepared by Karen Bancroft
:smD{]a 1 6 ba....croft pms}
RESOLUTION 8986 (CCS)
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
AUTHORIZING THE CITY OF SANTA MONICA TO IMPLEMENT THE PROVISIONS
OF SECTION 414(h)(2) OF THE INTERNAL REVENUE CODE
WHEREAS , the City of Santa MOnica 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 re 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) IRe; and
WHEREAS, the City of Santa MOnica has determmed that even though the
Implementation of the prOVISions of Section 414(h)(2) 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 SANTA MONICA
DOES RESOLVE AS FOLLOWS:
Adopted and approved thIs 9th of January, 1996
~~~
Mayor
I hereby certIfy that the foregomg Resoluuon 8986 (CCS) was duly adopted at a meetmg
of the City Council held on the 9th of January, 1996 by the followmg vote.
Ayes
CouncIl members
Abdo, Ebner, Genser, Holbrook, Rosenstem
Noes
Counctl members
None
Abstam
CouncIl members
None
Absent
Counell members
Greenberg, O'Connor
ATTEST
~~.~t
Cny Clerk \