HomeMy WebLinkAboutRES 2005-11 - Board Employer code: 1899
Publir Utility District 7
Resolution No. 2005 - 11
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 Truckee Donner Public Utility District 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 Truckee Donner Public Utility District elects to participate in the pre-tax
payroll deduction plan for all employees in the following CaIPERS coverage group: 70001.
NOW, THEREFORE, BE IT RESOLVED:
I. That the Truckee Donner Public Utility District will implement the provision 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 Truckee Donner Public Utility District to
CaIPERS, although designated as employee contributions, are being paid by the
Truckee Donner Public Utility District in lieu of contributions by the employees
who are members of CaIPERS.
III. That the employees shall not have the option of choosing to receive that
contributed amounts directly instead of having them paid by the Truckee Donner
Public Utility District to CaIPERS.
IV. That the Truckee Donner Public Utility District 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.
Resolution 2005-11 1
Employer code: 1899
V. That the effective date for commencement of the pre-tax payroll deduction plan
cannot be any earlier than July 1, 1996, or the date of the completed resolution
is received and approved in CalPERS, whichever is later.
VI. That the governing body of the Truckee Donner Public Utility District shall
participated in and adhere to requirements and restrictions of the pre-tax payroll
deduction plan by reporting pre-tax payroll deductions when authorized by
CalPERS for those employees of the above stated Coverage Group(s)who have
elected to participate in this plan.
PASSED AND ADOPTED by the governing board of the Truckee Donner Public Utility
District this 15th day of June, 2005 by the following roll call vote:
AYES: Directors Hemig, Sutton, Taylor and Thomason
NOES: None
ABSTAIN: None
ABSENT: Director Aguera
TRUCKEE NNER PUB IC UTILITY DISTRICT
CjAkron Hemig, President
ATTEST:
,4
Peter L. Holzmeister, istrict Clerk
RETURN ADDRESS:
P.O. Box 309, Truckee, Ca. 96160
FOR CALPERS USE ONLY
Pre-tax Payroll Deduction Plan Effective Date:
Approved By: Title:
.MBER SERVICES DIVISION, Service Credit Section — Unit 830
Resolution 2005-11 2