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HomeMy WebLinkAbout88-011W I ~,, .Y ~ ~_ BOARD OF SU~'ERVI ,~ ~ti 5 ,) - -y ~ COUNTY OF BUTTB, STATE OF CALlI •a _ :: + r Kesolufion P RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF BUTTE IMPLEMENTING RETIREMENT CONTRIBUTIONS "PICK UP" FOR JUDGES PAID BY BUTTE COUNTY WHEREAS, Government Code Section 75103.3 authorized the County to "pick up", for the sole purpose of deferring income taxes thereon, the normal contributions made by county paid members of the Judges' Retirement System; and WHEREAS, Section 414(h)(2) of the Internal Revenue Code empowers employers to "pick up" retirement contributions on behalf of employees; and WHEREAS, such contributions are not included in the employee's gross income in the year in which such amounts are contributed by the employer; and WHEREAS, such amounts are includable in the gross income of the employee, or beneficiary, in the taxable year in which such amounts are distributed; and WHEREAS, Section 17501 of the Revenue and Taxation Code incorporates the provisions of Section 4141h)l2); and WHEREAS, the County Counsel has determined that the Board of Supervisors is authorized to implement the "pick up" of such member contributions; and WHEREAS, the adopt of this resolution will not result is any additional cost to the County of Butte. NOW, THEREFORE, BE iT RESOLVED by the Board of Supervisors of the County of Butte that: 1. The Auditor-Controller shall implement the "pick up" of county paid member contributions to the Judges' Retirement System effective with the earnings paid and the contributions made on or after March 1, 1988. 2. The county shall make member contributions on behalf of county paid judicial officers, which shall be in lieu of contributions by said officers to the Judges' Retirement System. such contributions shall be treated as employer contributions for purposes of reporting and wage withholding under the Internal REvenue Code and the Revenue and Taxation Code. -2- 3. The amount "picked up", under Section 414{h)(2), shall be recouped through an offset against the salary of each judicial officer for whom the county "picks up" member contributions. This offset is similar to a reduction in salary and shall be made solely for purposes of income tax reporting and withholding. The member contributions "picked ug" by the county shall be treated as compensation paid to judicial officers for all other purposes. 4. County paid employer contributions to the IRS shall be paid for the same source of Funds as used in paying the salaries of the affected judicial officers. 5. No judicial officer shall have the option to receive the county employer contributed amounts directly instead of having them paid to the Judges' Retirement System. 5. The county paid member contributions shall be reported to the Judges' Retirement System as employer-paid normal contributions; under Section 75103.3 such contributions will be created to the judges' account in the Judges' Retirement Fund. BE IT FURTHER RESOLVED that this resolution shall remain in effect until repealed, or until such time as employer paid employee retirement contributions are no longer excludable from employee gross income wader the provisions of the Internal Revenue Code. PASSED AND ADOPTED by the Board of Supervisors of the County of Butte, this 2nd day of February. 1988, by the following vote: AYES: Supervisors Dolan, Fulton, McLaughlin, Uercruse and Chairman McInturf NOES: None ABSENT: None NOT VOTING: None HASKEL McINTURF, Chair of the Butte County Board of upervisors ATTEST: MARTIN J. NICHOLS, Chief Administrative Offic and_.~b~,Cl~)lerk of the Board By : ~ ~ / Ls a~ G~ ..