97-060RESOLUTION NO. 97R- 60
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF ANAHEIM
AMENDING RESOLUTION NO. 94R -106 BY
IMPLEMENTING THE PRE -TAX PAYROLL DEDUCTION PLAN
FOR SERVICE CREDIT PURCHASES IN ACCORDANCE WITH
SECTION 414(h)(2) OF THE INTERNAL REVENUE CODE
WHEREAS, the City Council of the City of Anaheim has the authority to implement the
provisions of Section 414(h)(2) of the Internal Revenue Code (IRC); and
WHEREAS, on July 12, 1994 the City Council of the City of Anaheim adopted
Resolution 94R -106 implementing an "employer pickup" plan under the provisions of Section
414(h)(2) of the IRC; and
WHEREAS, the Internal Revenue Service has stated on December 6, 1985 that the
implementation of the provisions of IRC Section 414(h)(2) pursuant to the Resolution of the
Board of Administration would satisfy the legal requirements of IRC Section 414(h)(2); and
WHEREAS, the Board of Administration of the California Public Employees Retirement
System (Ca1PERS) at the April 1996 meeting approved a pre -tax service credit purchase payroll
deduction plan under Section 414(h)(2) of the IRC; and
WHEREAS, the City Council of the City of Anaheim has determined that even though
the implementation of a pre -tax service credit purchase payroll deduction plan under Section
414(h)(2) of the IRC is not required by law, the tax benefit offered through this plan should be
provided to its employees who are members of the Public Employees Retirement system.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Anaheim will
implement the provisions of IRC Section 414(h)(2) by making employee contributions for
service credit purchases pursuant to the California State Government Code on behalf of its
employees who are members of CaIPERS and who have made a binding irrevocable election to
participate in the pre -tax payroll deduction plan. "Employee contributions" shall mean those
contributions reported to CaIPERS 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.
BE IT FURTHER RESOLVED that the provisions of this Resolution shall apply to all
employees of the City of Anaheim who are members of the CaIPERS, including local
miscellaneous and safety employees of the City of Anaheim enrolled in CaIPERS coverage
groups 70001, 70004 and 70005.
BE IT FURTHER RESOLVED that the contributions made by the City of Anaheim to the
CaIPERS, although designated as employee contributions, are being paid by the City of
Anaheim in lieu of contributions by the employees who are members of the CaIPERS.
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BE IT FURTHER RESOLVED that employees shall not have the option of choosing to
receive these contributed amounts directly instead of having them paid by the City of Anaheim
to the CaIPERS.
BE IT FURTHER RESOLVED that the City of Anaheim shall pay to CaIPERS the
contributions designated as employee contributions from the same source of funds as used to
pay salary, thereby resulting in tax deferral of employee contributions.
BE IT FURTHER RESOLVED that the City of Anaheim shall participate in and adhere to
the requirements and restrictions of the pre -tax service credit purchase payroll deduction plan
by reporting pre -tax payroll deductions when authorized by CaIPERS for those employees who
have elected to participate in this plan.
BE IT FURTHER RESOLVED that the effective date of the pre -tax service credit
purchase payroll deduction plan shall be the first day of the pay period following the date that
this Resolution is received and approved by the CaIPERS.
The FOREGOING RESOLUTION was approved and adoptedby the City
Council of the City of Anaheim this 13th day of May, 1997.
ATTEST:
CITY CLERK OF THE CITY OF ANAHEIM
APPROVED AS TO FORM:
CITY ATTORNEY OF THE CI V OF ANAHEIM
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MAYOR OF THE CITY OF ANAH
STATE OF CALIFORNIA
COUNTY OF ORANGE ss.
CITY OF ANAHEIM
I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing
Resolution No. 97R-60 was introduced and adopted at a regular meeting provided by law, of
the Anaheim City Council held on the 13th day of May, 1997, by the following vote of the
members thereof:
AYES: MAYOR /COUNCIL MEMBERS: McCracken, Tait, Lopez, Daly
NOES: MAYOR /COUNCIL MEMBERS: None
ABSENT: MAYOR /COUNCIL MEMBERS: Zemel
AND I FURTHER CERTIFY that the Mayor of the City of Anaheim signed said Resolution
No. 97R -60 on the 13th day of May, 1997.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of Anaheim this 13th day of May, 1997.
(SEAL)
CITY CLERK OF THE CITY OF ANAHEIM
I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing
is the original of Resolution No. 97R-60 was duly passed and adopted by the City Council of
the City of Anaheim on May 13, 1997.
stt
CITY CLERK OF THE CITY OF ANAHEIM