HomeMy WebLinkAbout09-069PRE-TAX PAYROLL PLAN FOR SERVICE CREDIT PURCHASES
(CONTRIBUTION CODE 14)
WHEREAS, the Board of Administration of the California Public Employees'
Retirement System {Ca1PERS) at the April 1996 meeting approved apre-tax payroll
deduction plan for service credit purchase under Internal Revenue Code (IRC) section
414(h)(2}; and
WHEREAS, the County of Butte has the authority to implement the provisions of
the 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 Ca1PERS; and
WHEREAS, the County of Butte elects to participate in the pre-tax payroll
deduction plan for all employees in the following Ca1PERS Coverage Groups:
All Miscellaneous Coverage Groups and All Safety Coverage Groups
WHEREAS, this resolution supersedes and replaces Resolution Number 97-66.
NOW, THEREFORE, BE IT RESOLVED:
I. That the County of Butte will implement the provisions of the 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 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.
II. That the contributions made by the County of Butte to Ca1PERS, although
designated as employee contributions, are being paid by the County of Butte in lieu
of contributions by the employees who are members of CaIPERS.
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EMPLOYER PICKUP RESOLUTION
III. That the employees shall not have the option of choosing to receive the contributed
amounts directly instead of having them paid by the County of Butte to Ca1PERS.
IV. That the County of Butte 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 deferral of employee contributions.
V. 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 by Ca1PERS, whichever is later.
VI. That the governing body of the County of Butte 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 of the
above stated Coverage Groups who have elected to participate in this plan.
PASSED AND ADOPTED by the Board of Supervisors of the County of Butte this
~~ day of ~7R y , 2009, by the following vote:
AYES: Supervisors Dolan, Kirk, Lambert, Yamaguchi, and Chair Connelly
NOES: None
ABSENT: None
NOT VOTING: None
SILL CONNELLY, hair of the Board of Supervisors
ATTEST:
GREGO , Interim C 'ef A istrative Officer and Clerk of the Board of
SB~pervis ors / ~~
ADDRESS:
County of Butte
Human Resources Department
25 County Center Drive, Suite 215
Oroville, CA 95965
FOR CALPERS USE ONLY
Pre-tax payroll deduction plan effective date:
Approved By: Title:
MEMBER SERVICES DNTSION, Service credit section-Unit 830
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