HomeMy WebLinkAboutRESO7530RESOLUTION NO. - 7530
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
IMPLEMENTING THE PROVISIONS OF SECTION 414(H)(2)
OF THE INTERNAL REVENUE CODE ON BEHALF OF LOCAL
SAFETY AND MISCELLANEOUS MEMBERS REPRESENTED BY
LOCAL 1319, INTERNATIONAL ASSOCIATION OF FIRE
FIGHTERS OF THE CITY OF PALO ALTO
WHEREAS, the City of Palo Alto 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) on September 18, 1985; and
WHEREAS, the- Internal Revenue Service has stated on
December 6, 1985, that the implementation of the provisions of
Section 414(h)(2) of the IRC pursuant to the resolution of the
Board of Administration would satisfy the legal requirements of
Section 414(h) (2) of the IRC; and
WHEREAS, the City of Palo Alto has determined that even
though the implementation of the provisions of Section 414(h)(2) of
the'IRC is not required by law, the tax benefit offered by Section
414(h)(2) of the IRC should be provided to its employee members of
Local 1319, International Association of Fire Fighters, who are
local safety and miscellaneous members of the Public Employees'
Retirement System;
NOW, THEREFORE;
The Council of the City of Palo Alto does hereby RESOLVE as
follows:
SECTION 1. The City of Palo Alto will implement the
provisions of Section 414(h)(2) of the Internal Revenue Code by
making employee contributions pursuant to California Government
Code section 20615 to the Public Employees' Retirement System on
behalf of its employee members of Local 1319, International
Association of Fire Fighters, who are local safety and
miscellaneous members of the Public Employees' Retirement System
(the "designated employees"). "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 employees' accounts pursuant to California Government
Code section 20615.
SECTION 2. The contributions made by the City of Palo Alto
to the Public Employees' Retirement System, although designated as
employee contributions, are being paid by the City of Palo Alto in
lieu of contributions by the designated employees, who are members
of the Public Employees' Retirement System.
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SECTION The designated employees shall not have the
option of choosing to receive the contributed amounts directly
instead of having them paid by the City of Palo Alto to the Public
Employees' Retirement System.
SECTION 4. The City of Palo Alto 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.
SECTION 5. The amount of the contributions designated as
employee contributions and paid by the City of Palo Alto to the
Public Employees' Retirement System on behalf of a designated
employee shall be the entire contribution required of the employee
by the Public Employees' Retirement Law (California Government Code
section 2000, et seq.).
SECTION 6. The contributions .designated as employee
contributions made by the City of Palo Alto 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.
SECTION 7. This is not a project for purposes of the
California Environmental Quality:Act ("CEQA").
INTRODUCED AND PASSED: July 10, 1995
AYES: ANDERSEN, FAZZINO, HUBER, MCCOWN, ROSENBALN, SCHNEIDER, SIMITIAN, WHEELER
NOES:
ABSENT: KNISS
ABSTENTIONS:
ATTEST
C. y lerk
APPROVED AS TO FORM:
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Senior Asst. City Attorney
AP'ROVED :
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ire.d r of Administrative
ervices
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Dirkctor of Human Resources
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