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EMPLOYER PICKUP RESOLUTION
PRE-TAX PAYROLL DEllUCTION PLAN FOR SERVICE- CREDIT PURCHASES
(CONTRIBUTION CODE 14)
WHEREAS, the Board of Adrr~inistration of the California Public Employees' Retirement
System (CaIPERS) at the April 1996 meeting approved apre-tax payroll deduction plan for service
credit purchases under Internal Revenue Code (IRC) Section 4l4(h) (2); and
WHEREAS, the County of Butte has the authority to implement the provisions of IRC Section
41 ~(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 CaIPERS; and
WHEREAS, the County of Butte elects to participate in the pre-tax payroll deduction plan for
all er~~ployees in the following CaIPERS Coverage Groups:
Miscellaneous - 70002 Safety - 77001
NOW, THEREFORE, BE I'I' KESOLVEI):
I. That the County of Butte 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 CaIPERS 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
CaIPERS which are deducted from the salary of employees and are credited to
individual employee accounts for service credit pw-chases thereby resulting in tax
deferral of employee contributions.
IL That the contributions made by the County of Butte to CaIPERS, although designated
as employee contributions, are being paid by the County of Butte in lieu of contributions
by the employees tivho are members of CaIPERS.
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 CaIPERS.
IV. That the County of Butte shall pay to CaIPERS the contributions designated as employee
contributions from the same Source of funds as used in paying Salary, thereby resulting
in tax deferral of employee cc ntributions.
V. That the effective date for commencement of the pre-tax payroll deduction plan cannot
be any earlier than July I, 1996, or the date the completed resolution is received and
approved in CaIPERS, 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 CaIPERS far 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 2'7th day
of May 1997 by the following vote;
AYES: Supervisors Beeler, Dolan, Houx, Josiassen and Chair Davis
NOES: None
ABSENT: None
NOT VOTING: None
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FRED C. DAMS, Chair
Board of Supervisors
ATTEST:
JOHN S. BLACKLOCK, Chief Administrative Officer
and Clerk of the Board of Supervisors
deputy
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