HomeMy WebLinkAboutCC RES 02-097RESOLUTION NO. 02-97
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT IMPLEMENTING SECTION 414(h)(2) OF THE INTERNAL
REVENUE CODE (IRC).
WHEREAS, the City of Palm Desert 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 Palm Desert 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 Palm Desert 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.
II. That the contributions made by the City of Palm Desert to the Public Employees'
Retirement System, although designated as employee contributions, are being paid
by the City of Palm Desert in lieu of contributions by the employees who are
members of the Public Employees' Retirement System.
III. That employees shall not have the option of choosing to receive the contributed
amounts directly instead of having them paid by the City of Palm Desert to the
Public Employees' Retirement System.
IV. That the City of Palm Desert 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.
RESOLU11UN Nu. uc-r
That the amount of the contributions designated as employee contributions and paid
by the City of Palm Desert 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 sea.).
VI. That the contributions designated as employee contributions made by the City of
Palm Desert 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, APPROVED AND ADOPTED at a regular meeting of the Palm Desert
City Council, held on this 22nd day of Auaust, 2002, by the following vote, to wit:
AYES: CRITES, FERGUSON, KELLY
NOES: NONE
ABSENT: BENSON
ABSTAIN: SPIEGEL
ATTEST:
RACHELLE D. KLASSEN, C
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Y CLERK
CITY OF PALM DESERT, CALIFORNIA
CITY OF PALM DESERT
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RICHARD S. LLY, YO