R-9172
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RESOLUTION # 9172 (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 Board of AdminIstration of the CalifornIa Public Employees'
RetIrement System (CaIPERS) 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 Santa MOnica has the authonty 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 Santa MOnica elects to participate In the pre-tax payroll
deduction plan for all employees In the follOWing CalPERS coverage group(s)'
Local Miscellaneous
Local Safety (Fire Fighters and Police Officers)
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES
RESOLVE AS FOLLOWS:
Section 1. That the City of Santa MOnica will Implement the provIsion of I RC
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section 414(h)(2) by making employee contnbutlons for service credit purchases
pursuant to the Callfornla 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
contnbutlons 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. That the contributions made by the City of Santa Monica to
CaIPERS, although deSignated as employee contributions, are being paid by the City
of Santa MOnica In lieu of contributions by the employees who are members of
CaIPERS.
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 Santa
Monica to CaIPERS.
Section 4. That the City of Santa Monica shall pay to CalPERS the contributions
deSIgnated as employee contnbutlons from the same source of funds as used In paYing
salary, thereby resulting In tax deferral of employee contnbutlons.
Section 5. That the effective date for commencement of the pre-tax payroll
deduction plan cannot be any earlier than July 1, 1996, or the date the completed
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resolution IS received and approved in CaIPERS, whichever IS later.
Section 6. That the governing body of the City of Santa Monica shall
participated In and adhere to requirements and restriction of the pre-tax payroll
deductIon plan by reporting pre-tax payroll deductions when authonzed by CalPERS for
those employees of the above stated Coverage Groups who have elected to participate
In this plan
Section 7. The City Clerk shall certify to the adoption of this Resolution and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
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MARSHA JONES MOUTRIE L
CIty Attorney
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Adopted and approved thIS 22nd of July 1997
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L Mana M Stewart, CIty Clerk ofthe Cny of Santa Momca, do hereby certIfy that the
foregomg ResolutIOn 9172(CCS) \vas duly adopted at a meetmg of the CIty CouncIl held on the
22nd of July, 1997 by the followmg vote
Ayes
CouncIlmembers
F emstem. Genser, Mayor Pro Tern Holbrook, Mayor
O'Connor, Rosenstem
1\oes
CouncIlmembers
None
Abstam
CouncIlmembers
None
Absent
CouncIlmembers
Ebner, Greenberg
ATTEST
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Mana M Ste\vart. CIty Clerk