Resolution No. 97851
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RESOLUTION NO. 9785
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON IMPLEMENTING SECTION 414(h)(2) OF THE
INTERNAL REVENUE CODE TO TAX DEFER- MEMBER PAID
CONTRIBUTIONS RELATING TO THE PUBLIC EMPLOYEES'
RETIREMENT SYSTEM
WHEREAS, the Public Employees' Retirement Law permits the
participation of public agencies and their employees in the Public
Employees' Retirement System (PERS) by the execution of a contract, and
sets forth the procedure by which public agencies may elect to subject
themselves and their employees to amendments to said Law; and
WHEREAS, the PERS Board of Administration and the City of
Vernon entered into a contract effective November 1, 1948, and witnessed
October 23, 1948 (the "Contract"), which provides for participation of
the City of Vernon and its employees in the PERS, and have made various
amendments to the Contract since that time; and
WHEREAS, the City of Vernon 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 PERS adopted its
resolution regarding Section 414(h)(2) of the IRC on September 18,
i985; and 11
WHEREAS, the Internal Revenue Service has stated in December
,1985, that the implementation of the provisions of Section 414(h) (2) of
the IRC pursuant to the resolution of the Board of Administratioi-I would
satisfy the legal requirements of Section 414(h)(2) of the IRC; and
WHEREAS, since 1948 it has always been the City's policy and
-the City of Vernon now determines that even though the implementation
1 of the provisions of Section 414(h)(2) of the IRC is not required by
2 law, the tax benefit offered by Section 414(h)(2) of the IRC should be
3 provided to its employees who are members of the PERS.
4 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
5 CITY OF VERNON AS FOLLOWS:
6 SECTION 1: The City Council of the City of Vernon does
7 hereby find and determine that the recitals contained hereinabove are
8 true and correct.
9 SECTION 2: The City Council of the City of Vernon by virtue
10 of its prior stated policies hereby re -implements the provisions of
11 Section 414(h)(2) of the IRC by making employee contributions pursuant
12 to California Government Code Section 20691 to the PERS on behalf of
13 its employees who are members of the PERS. "Employee contributions"
14 shall mean those contributions to the PERS which are paid by the City
15 and are credited to individual employee's accounts pursuant to
16 California Government Code Section 20691.
17 SECTION 3: The contributions made by the City of Vernon to
18 the PERS, although designated as employee contributions, are being paid
19 by the City of Vernon in lieu of contributions by the employees who are
20 members of the PERS.
21 SECTION 4: Employees shall not have the option of choosing
22 to receive the contributed amounts directly instead of having t hem paid
23 by the City of Vernon to the PERS.
24 SECTION 5: The City of Vernon shall pay to the PERS the
25 contributions designated as employee contributions from the same source
26 of funds as used in paying salary.
2-7 SECTION 6: The amount of the contributions designated as
28 employee contributions and paid by the City of Vernon to the PERS on
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behalf of the employee shall be the entire contribution required of the
employee by the Public Employees Retirement Law (California Government
Code Sections 20000, et seq.).
SECTION 7: The contributions designated as employee
contributions made by the City of Vernon to the PERS shall be treated
for,all purposes, other than taxation, in the same way that member
contributions are treated by the PERS.
SECTION 8: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and thereafter
the same shall be in full force and effect.
APPROVED AND ADOPTED this 15 TH day of December, 2008.
ATITES_T:
)/Zx� -- &x'�- -
MANUELA GIRON,—Cit(y Clerk
Leonis C. Malburvg
Name:
Title: M a y o r / �
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STATE OF CALIFORNIA
) ss
COUNTY OF LOS ANGELES
I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby
certify that the foregoing Resolution, being Resolution No. 9785, was
duly adopted by the City Council of the City of Vernon at a regular
meeting of the City Council duly held on Monday, December 15, 2008, and
thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of
Vernon.
(SEAL)
MANUELA GY-RON4 City Clerk
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CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: January 5, 2009
TO: Rory Burnett, Finance Director
Sharon Duckworth, City Treasurer
Masami Higa, Internal Control Manager/Controller
Avigal Horrow, Human Resources Director
Joaquin Leon, Assistant Finance Director
Martha Valenzuela, Director of Personnel/Purchasing Agent
Willard Yamaguchi, Chief Deputy City Attorney/Risk Manager
FROM: Nelly Giron, City Clerk Mle �
RE: Resolution No. 9785 - A Resolution of the City Council of
the City of Vernon Implementing Section 414 (h) (2) of the
Internal Revenue Code to Tax Defer Member Paid Contributions
Relating to the Public Employees' Retirement System
Transmitted herewith is a copy of Resolution No. 9785 referenced
above, which was approved by City Council on December 15, 2008.
Thank you.
NG: dj
C: Resolution No. 9785