2009-09 Y
RESOLUTION NO. 2009= 09
A RESOLUTION OF THE CITY.OF GRAND TERRACE, CALIFORNIA,
RESOLUTION TO TAX DEFER MEMBER PAID CONTRIBUTI'ONS
WHEREAS,the City of Grand Terrace 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 regarding 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
i WHEREAS,the.City of Grand Terrace has determined that even though the Y
implementation of the,provisions of section 41.4(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: Y
I. That the City of Grand Terrace 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 Grand Terrace to the Public Employees' -
Retirement System, 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 the
Public:Employees' Retirement System.
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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 Grand Terrace to the Public
Employees' Retirement System.
IV. That the city of,Grand_ Terrace 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
bythe city of- Grand-Terrace 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 Grand
Terrace 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 this 24th day of March, 2009.
Attest:
City Clerk Mayor
City Grand Terrace
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I, BRENDA MESA, CITY CLERK of the City of Grand Terrace, do hereby certify that the
foregoing Resolution was introduced and adopted at a regular meeting ofthe City Council of the City
of Grand Terrace held on the 24t' day of March, 2009 by the following vote:
AYES: Councilmembers Miller and Stanckiewitz; Mayor Pro Tern Garcia
and Mayor Ferre
NOES: None
ABSENT: None
ABSTAIN: Councilmember Cortes
City Clerk