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HomeMy WebLinkAbout11-024Resolution RESOLUTION FOR IMPLEMENTATION OF INTERNAL REVENUE CODE SECTION 414(h)(2) WHEREAS, the County of Butte 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} [RC 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 County of Butte has determined that even though the implementation of the provisions of section 414(h}(2) IRC is not required by law, the tax benefit afFered 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: That the County of Butte will implement the provisions of section 414(h){2) Internal Revenue Code {lRC) 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 #o California Government Code section 20691. 2. Any portion of the contributions made by the County of Butte to the Public Employees' Retirement System, although designated as employee contributions, are being paid by the County of Butte in lieu of contributions by the employees who are members of the Public Employees' Retirement System. 3. That 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 the Public Employees' Retirement System. 4. That the County of Butte 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. 5. That the amount of contributions designated as employee contributions shall be made in any combination by the County of Butte and by the employee to the Public Employees' Retirement System on behalf of an employee {per MOU, impasse Resolution, or other labor agreement or policy). This amount shall be equal to the entire contribution required of the employee by the Public Employees' Retirement Law (California Government Code sections 20000, et seq.). That the contributions designated as employee contributions made by the County of Butte 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. NOW, THEREFORE, BE IT RESOLVED that this Resolution supersedes Resolution 08-148. PASSED AND ADOPTED by the Board of Supervisors, of the County of Butte, State of California, at a regular mee#ing of said Board, held on the ,day of March 2011, by the following vote: AYES: Supervisors Connelly, Wahl, Kirk, Yamaguchi, and Chair Lambert NOES: None ABSENT: None NOT VOTING: None Steve Lamb ,Chair Butte County Board of Supervisors ATTEST: Paul Hahn Chief Administr ve Officer And Cle~of ~ l3par~l of Su