HomeMy WebLinkAboutAGENDA REPORT 2007 0117 CC REG ITEM 10II I 0-T .
MOORPARK CITY COUNCIL /-/7 -dW 7
AGENDA REPORT �Ct' .d
TO: Honorable City Council -�--
FROM: Deborah S. Traffenstedt, Administrative Services Director
Prepared by: Teri Davis, Senior Management Analyst
DATE: January 3, 2007 (CC Meeting of 1/17/07)
SUBJECT: Consider Resolution Adopting California Public Employee Retirement
System's Resolution for Pre -Tax Payroll Deductions
BACKGROUND AND DISCUSSION
The California Public Employee Retirement System (CaIPERS) provides members with an
option to purchase service credit that will be added to the overall service time a member
has accumulated at the time of retirement. Generally, members elect whether to have
payroll deductions for the purchase of service credit deducted from their paychecks on
either a pre -tax or after -tax payments; however, a member may only elect pre -tax payroll
deductions if the agency deducting the payments has adopted a CaIPERS resolution
authorizing the agency to do so.
Attached to this report is the CaIPERS Employer Pickup Resolution Pre -Tax Payroll
Deduction Plan for Service Credit Purchases (Contribution Code 14) which allows
CaIPERS members to elect a pre -tax payroll deduction plan for service credit purchases.
The City of Moorpark has not yet adopted this CaIPERS resolution, leaving employees with
no choice but to have service credit purchase deductions made as an after -tax payment.
There is no fiscal impact on the City of Moorpark regardless of whether an employee
makes pre -tax or after tax payments for additional service credit purchases.
City Council concurrence to allow adoption of the CaIPERS resolution is requested.
STAFF RECOMMENDATION
Adopt Resolution No. 2007- consistent with the agenda report.
Attachments: Resolution No. 2007 -
CaIPERS Resolution
0001,
Attachment A
RESOLUTION NO. 2007-
A RESOLUTION OF THE CITY OF MOORPARK ADOPTING THE
CALIFORNIA PUBLIC EMPLOYEE RETIREMENT SYSTEM'S
EMPLOYER PICKUP RESOLUTION PRE -TAX PAYROLL
DEDUCTION PLAN FOR SERVICE CREDIT PURCHASES
(CONTRIBUTION CODE 14)
WHEREAS, members of the California Public Employee Retirement System
(CaIPERS) may elect to purchase additional service credit; and
WHEREAS, CaIPERS service credit purchase payments may be deducted from
employees who have purchased additional service credit as a pre -tax or after -tax
payment if the employing agency has adopted the CaIPERS Employer Pickup
Resolution Pre -Tax Payroll Deduction Plan for Service Credit Purchases (Contribution
Code 14); and
WHEREAS, the City of Moorpark has not yet adopted the CaIPERS resolution
which would give the City authority to deduct pre -tax service credit payments; and
WHEREAS, employee elected service credit purchases have no fiscal impact on
the City of Moorpark regardless of whether they are deducted as pre -tax or after -tax
payments.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City of Moorpark hereby adopts the CaIPERS Employer
Pickup Resolution Pre -Tax Payroll Deduction Plan for Service Credit Purchases
(Contribution Code 14).
SECTION 2. The City Clerk shall certify to the adoption of this resolution and
shall cause a certified resolution to be filed in the book of original resolutions.
PASSED AND ADOPTED this 17th day of January 2007.
Patrick Hunter, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
Attachment: CaIPERS Resolution
000108
Return to CaIPERS - Unit 836
Employer code: 1362
EMPLOYER PICKUP RESOLUTION
PRE -TAX PAYROLL DEDUCTION PLAN
FOR SERVICE CREDIT PURCHASES
(CONTRIBUTION CODE 14)
WHEREAS, the Board of Administration of the California Public Employees' Retirement System
(CaIPERS) at the April 1996 meeting approved a pre -tax payroll deduction plan for service credit
purchases under Internal Revenue Code (IRC) section 414(h)(2); and
WHEREAS, the City of Moorpark {Employer) has the authority to implement the provisions of IRC section
414(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 City of Moorpark (Employer) elects to participate in the pre -tax payroll deduction plan for
all employees in the following CaIPERS Coverage Group(s):
{Membership Coverage Group(s))
All Miscellaneous Groups
NOW, THEREFORE, BE IT RESOLVED:
That the City of Moorpark {Employer) 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 purchases, thereby resulting in tax
deferral of employee contributions.
II. That the contributions made by the City of Moorpark {Employer) to CaIPERS, although designated as
employee contributions, are being paid by the City of Moorpark (Employer) in lieu of contributions by
the employees who are members of CaIPERS.
(3001(19
III. That the employees shall not have the option of choosing to receive the contributed amounts directly
instead of having them paid by the City of Moorpark {Employer} to CaIPERS.
IV. That the City of Moorpark {Employer} 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 contributions.
V. That the effective date for commencement of the pre -tax payroll deduction plan cannot be any earlier than
the date the completed resolution is received and approved by CaIPERS.
VI. That the governing body of the City of Moorpark {Employer} 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 for those employees of the above stated Coverage Group(s) who have elected to
participate in this plan.
PASSED AND ADOPTED by the governing body of the City of Moorpark {Employer}
this 17th day of January, 2007. {year)
BY
RETURN ADDRESS:
Deborah Traffenstedt, City Clerk
City of Moorpark
799 Moorpark Avenue
Moorpark, CA 93021
(Signature of Official)
(Title of Official)
FOR CALPERS USE ONLY
Pre -tax payroll deduction plan effective date:
Approved By: Title:
MEMBER SERVICES DIVISION, Service credit section -Unit 830
000110