CC Resolution No. 11-170 Tax Defer Member Paid Contributions - IRC 414(H)(2) Employer Pick-up RESOLUTION NO. 11 -170
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO TO TAX
DEFER MEMBER PAID CONTRIBUTIONS — IRC 414(H)(2)
EMPLOYER PICK -UP
WHEREAS, the Council has the authority to implement the provisions of section
414(h)(2) of the Internal Revenue Code (IRC); and
WHEREAS, the Council has determined that even though the implementation of the
provisions of section 414(h)(2) IRC is not required by law, the tax benefit offered by section
414(h)(2) IRC should be provided to the Unrepresented group, City Attorney Employees' group,
Cupertino Employees' Association, Operating Engineers Local No. 3 employees and City
Council who are members of the California Public Employees' Retirement System.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Cupertino
hereby establishes:
1. That the City of Cupertino will implement the provisions of section 414(h)(2) Internal
Revenue Code by making employee contributions pursuant to California Government
Code Section 20691 to the California Public Employees' Retirement System on behalf
of all its employees or all its employees in a recognized group or class of employment
who are members of the California 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 to California Government Code section 20691.
2. That the contributions made by the City of Cupertino to the California Public
Employees' Retirement System, although designated as employee contributions, are
being paid by the City of Cupertino in lieu of contributions by the employees who are
members of the California 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 City of Cupertino to the California Public
Employees' Retirement System.
4. That the City of Cupertino shall pay to the California 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 the contributions designated as employee contributions and paid by
the City of Cupertino to the California Public Employees' Retirement System on behalf
of an employee shall be a portion of the contribution required of the employee by the
California Public Employees' Retirement Law (California Government Code Sections
20000, et seq.).
Resolution No. 11 -170
6. That the contributions designated as ernployee contributions made by the City of
Cupertino to the California Public Employees' Retirement System shall be treated for all
purposes, other than taxation, in the same way that member contributions are treated by
the California Public Employees' System.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this
4 day of October, 2011 by the following vote:
Vote: Members of the City Council
AYES: Wong, Santoro, Chang
NOES: None
ABSENT: Mahoney, Wang
ABSTAIN: None
ATTEST: APPROVED:
/V(/'
Kimberly Smith, Clerk Gilbert Wong
Mayor, City of Cupertino