HomeMy WebLinkAbout2001-59 RESOLUTION NO. 2001-59
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH
IMPLEMENTING THE PROVISIONS OF
SECTION 414(h) (2) OF THE INTERNAL REVENUE CODE
FOR EMPLOYER PICK-UP
WHEREAS, the City of Ukiah 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) IRC; and
WHEREAS, the City of Ukiah 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, BE IT RESOLVED:
I. That the City of Ukiah will implement the provisions of Section 414(h)(2) Internal
Revenue Code 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 the salary of employees and are
credited to individual employee's accounts pursuant to California Government Code section 20691.
I1. That the contributions made by the City of Ukiah to the Public Employees' Retirement
System, although designated as employee contributions, are being paid by the City of Ukiah in lieu of
contributions by the employees who are members of the Public Employees' Retirement System.
Ill. That employees shall not have the option of choosing to receive the contributed amounts
directly instead of having them paid by the City of Ukiah to the Public Employees' Retirement System.
IV. That the City of Ukiah 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 Ukiah 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 seq.).
VI. That the contributions designated as employee contributions made by the City of Ukiah 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 AND ADOPTED this 6th day of June, 2001 by the following roll call vote:
AYES:
NOES: None
ABSENT: None
ABSTAIN: None
Councilmembers Larson, Smith, Libby, Baldwin, and Mayor Ashiku
Marie Ulvila, City Clerk
Phillip ~shiku, Mayor