1996-19 RESOLUTION NO. 96-19
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE, CALIFORNIA, APPROVING PAYROLL DEDUCTION PLAN
FOR SERVICE CREDIT PURCHASES (CONTRIBUTION CODE 14)
WHEREAS,the Board of Administration of the California Public Employees' Retirement
System(CalPERS) 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 Grand Terrace has the authority 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
CalPERS; and
WHEREAS,the City of Grand Terrace elects to participate in the pre-tax payroll deduction
plan for all employees in the following CalPERS coverage group(s):
Local Miscellaneous Members
NOW,THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE
J DOES HEREBY RESOLVE,DECLARE,DETERMINE,AND ORDER AS FOLLOWS:
SECTION 1. That the City of Grand Terrace 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 CalPERS 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 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 Grand Terrace to CalPERS,
although designated as employee contributions, are being paid by the City of Grand Terrace in lieu
of contributions by the employees who are members of CalPERS.
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 Grand Terrace to CalPERS.
SECTION 4. That the City of Grand Terrace shall pay to CalPERS the contributions
designated as employee contributions from the same source of funds as used in paying salary, thereby
resulting in tax deferral of employee contributions.
SECTION 5. That the effective date for commencement of the pre-tax payroll deduction
v plan cannot be any earlier than July 1, 1996, or the date the completed resolution is received and
approved in Ca1PERS, whichever is later.
SECTION 6. That the governing body of the City of Grand Terrace 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 CalPERS for those employees of the above stated Coverage
Group(s)who have elected to participate in this plan.
ADOPTED THIS 25TH DAY OF JULY, 1996.
ATTEST:
City Clerk of the City of drand Terrace Mayor the City of Grand Terrace
and of the City Council thereof. and of t e City Council thereof.
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO)
CITY OF GRAND TERRACE )
I, BRENDA STANFILL, CITY CLERK of the CITY OF GRAND TERRACE,
California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted
by the City Council, approved and signed by the Mayor, and attested by the City Clerk, all at the
meeting of said City Council held on the 25 th day of Ju y 1996, and that the same
was passed and adopted by the following vote:
AYES: Councilmembers Hilkey and Garcia; Mayor Pro Tem Buchanan; Mayor Matteson
NOES: None
ABSENT: Councilmember Singley
ABSTAIN: None
CITY CLERK
CITY OF GRAND TERRACE