RES-2006-021RESOLUTION N0. 2006- 021
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM IMPLEMENTING THE
PRE-TAX PAYROLL DEDUCTION PLAN FOR
SERVICE CREDIT PURCHASES TO ALL
MISCELLANEOUS AND ALL SAFETY
GROUPS
.~
WHEREAS, the Board of Administration of the California Public Employees' Retirement
System (CaIPERS) at its April 1996 meeting approved apre-tax payroll deduction plan for
service credit purchases under Internal Revenue Code (IRC) section 414(h)(2); and
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, the City Council of the City of Anaheim has determined that even though the
implementation of the provisions of IRC Section 414{h)(2) is not required by law, the tax benefit
offered by IRC Section 414(h}(2) should be provided to its employees who are members of
CaIPERS; and
WHEREAS, the City of Anaheim elects to participate in the pre-tax payroll deduction plan
for all Miscellaneous and all Safety Groups in the City of Anaheim.
NOW, THEREFORE, BE IT RESOLVED:
(1) 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
California Government Code on behalf of its employees in all coverage groups who are members
of Ca1PERS 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 Ca1PERS
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.
(2) That the contributions made by the City of Anaheim to Ca1PERS, although designated
as employee contributions, are being paid by the City of Anaheim in lieu of contributions by the
employees who are members of Ca1PERS.
(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 Anaheim to Ca1PERS.
(4) That the City of Anaheim shall pay to Ca1PERS the contributions designated as
employee contributions from the same source of funds as used in paying salary, thereby resulting in
tax defen~al of employee contributions.
{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 resolution is received and approved
in Ca1PERS, whichever is later.
{6) That the City Council of the City of Anaheim shall participate in and adhere to
requirements and restrictions of the pre-tax payroll deduction plan by reporting pre-tax payroll
deductions when authorized by Ca1PERS for those employees within all Coverage Groups who have
elected to participate in this plan,
THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City
of Anaheim this 14th day of February , 2006, by the following roll call vote:
AYES: Mayor Pringle, Council Members Chavez, Galloway, Hernandez
NOES: None
ABSENT: Council Member Sidhu
ABSTAIN: None
CITY ANAHEIM
By
MAYOR OF THE ANAHEIM
ATT ST:
CITY CL OF THE CITY OF ANAHEIM
60628.1
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