HomeMy WebLinkAboutRESOLUTIONS - 12092008 - 2008/765THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
acting in its capacities as the Governing Body of Contra Costa County,
Contra Costa County Fire Protection District,East Contra Costa
Fire Protection District,and Contra Costa
In-Home Supportive Services Authority
Adopted this Order on by the following vote:
AYES: GIOIA, UILKEMA, PIEPHO. BONILLA &GLOVER
NOES: NONE
ABSENT: NONE
ABSTAIN`. . NONE
SUBJECT: County Employees' Retirement RESOLUTION NO. 2008/765
Contributions
I.R.C. §414(h)(2)]
WHEREAS, Section 414(h)(2) of the Internal Revenue Code, empowersemployers to
pick up" retirement contributions on behalf of employees; and
WHEREAS, such contributions are not included in the employee's gross income in the
year in which such amounts are contributed by the employers; and
WHEREAS, such amounts are includable in the gross income of the employee, or
beneficiary, in the taxable year in which such amounts are distributed; and
WHEREAS, Section 17501 of the Revenue and Taxation Code incorporated the
provisions of IRC Section 414(h)(2); and
WHEREAS, Goveimnent Code Section 31581.2 authorizes the County to "pick up", for
the sole purpose of deferring income taxes thereon, the normal contributions made by County
employees; and
WHEREAS, for purposes of this Resolution, "County"refers respectively to the County
of Contra Costa, the Contra Costa County Fire Protection District, the East Contra Costa Fire
Protection District, and the Contra Costa In-Home Supportive Services Authority,
NOW THEREFORE, BE IT RESOLVED THAT:
With respect to all management and unrepresented employees, and with respect to all
employees represented by recognized employee organizations, who are members of the Contra
Costa County Employees' Retirement Association, the County Auditor-Controller shall
implement the "pick up," of County-paid member contributions to the Contra Costa County
Employees' Retirement Association Retirement System.
1.The County shall malce member contributions on behalf of the County-paid
employees which shall be in lieu of contributions by said employees to the Contra
Costa County Employees' Retirement System. Such contributions shall be treated
as employer contributions for purposes of reporting and wage withholding under
the Internal Revenue Code and the Revenue and Taxation Code. Such
RESOLUTION NO. 2008/765
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contributions may be regular contributions, buy back contributions or purchase of
service credit contributions.
2.The amount "picked up"under Section 414(h)(2), shall be recouped through an
offset against the salary of each employee for whom the County"picks up"
member contributions. This offset is akin to a reduction in salary and shall be
made solely for purposes of income tax reporting and withholding. The member
contributions "picked up"by the County shall be treated as compensation paid to
employees for all other purposes.
3.The County-paid contributions to the Contra Costa County Employees Retirement
System shall be paid from the same source of funds as used in paying the salaries
of the affected employees.
4.No employee shall have the option to receive the County-paid contribution
amounts directly instead of having them paid to the Contra Costa County
Employees' Retirement System.
5.The County paid member contributions shall be reported to the Contra Costa
County Employees' Retirement System as employer-paid contributions; such
contributions will be credited to the employees' account in the Contra Costa
County Employees' Retirement Fund.
In 1989, the Board of Supervisors considered and approved implementation of this
program as of January 1, 1990. In 1994 in Resolution 94/70, the Board readopted and approved
continuation of the program. By this resolution the Board again readopts and approves the
continuation of this program, and to any extent which may be necessary, ratifies all prior actions
implementing this program.
This resolution shall remain*in effect until superseded, or until such time as employer-
paid employee retirement contributions are no longer excludable from employee gross income
under the provisions of the Internal Revenue Code or the California Government Code.
Orig.Dept.: County Counsel I hereby certify that this is a true and correct copy
Contact Person: Mary Ann Mason(335-1800) of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
cc: Auditor-Controller
County Administrator
County Counsel ATTESTED:
CCCERA—Retirement Administrator
Human Resources Director Dczm 0.( y o- 1
Chief, CCC Fire Protection District. DAVID TWA,Clerk of the Board of Supervisors
Chief,East Contra Costa Fire Protection District and County Administrator
Executive Director,IHSS
By / J'S Deputy
RESOLUTION NO. 2008/765
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