HomeMy WebLinkAboutMINUTES - 01051999 - C123 a
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
TO: BOARD OF COMMISSIONERS
FROM: Robert McEwan,Acting Executive Director
DATE: January 5, 1999
SUBJECT: DESIGNATING EMPLOYEE CONTRIBUTIONS TO THE CONTRA COSTA COUNTY
EMPLOYEES ASSOCIATION(CCCERA)AS EMPLOYER"PICK UP"CONTRIBUTIONS
SPECIFIC REQUEST(S)OR RECOMMENDATIONS)& BACKGROUND AND JUSTIFICATION
I. RECOMMENDED ACTION:
ADOPT Resolution No.4054 approving use of the Internal Revenue Code(IRC)414(h)(2)empowering the Housing
Authority of the County of Contra Costa to"Pick Up"retirement contributions on behalf of management and represented
employees and for such contributions not to be included in the employees gross income in the year the amounts are contributed
to be effective with the first pay period in January, 1999.
Il. FINANCIAL IMPACT:
The employee's portion to retirement contributions will be excluded from Federal and State income taxes,but are
included for Social Security(FICA)taxes.
Ill. REASONS FOR RECOMMENDATION/BACKGROUND
Under the 414(h)(2)plan,the employee's net pay is increased because the Federal and State income tax on the
employer"Pick-Up"contribution for the employees are deferred until retirement.
IV. CONSEQUENCES OF NEGATIVE ACTION:
Should the Board of Commissioners elect not to adopt Resolution No.4054 employee contributions towards the
CCCERA retirement system will continue to be out of the employee net wages and they will loose the tax advantage of income
tax deferral,
CONTINUED ON ATTACHMENT: YES SIGNATURE
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RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S)•
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ACTION OF BOARD ON art APPROVED AS RECOMMENDED tk—_ *WNMMW
VOTE OF COMMISSIONERS
I HEREBY CERTIFY THAT THIS IS A
UNANIMOUS (ABSENTTRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: _ MINUTES OF THE BOARD OF
COMMISSIONERS ON THE DATE SHOWN.
ATTESTECLERK
.
P BA CHE k CL RK OF
THE BOARD O COMMISSIONERS
AND COUNTY ADMINISTRATOR
BY zce, DEPUTY
bortrcnnt
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THE BOARD OF COMMISSIONERS
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
RESOLUTION NO.4054
RESOLUTION DESIGNATING CONTRIBUTIONS TO THE CONTRA COSTA
COUNTY EMPLOYEES RETIREMENT SYSTEM AS EMPLOYER
CONTRIBUTIONS
WHEREAS, Section 414(h)(2)of the Internal Revenue code,empowers employers 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, Section 17501 of the Revenue and Taxation Code incorporated the
provision if IRC Section 414(h)(2);and
WHEREAS,Government Code Section 315.2 authorizes the Housing Authority of the
County of Contra Costa to"pick up",for the sole purpose of deferring income
taxes thereon,the normal contributions made by Housing Authority of the
County of Contra Costa employees,
NOW,THEREFORE, BE IT RESOLVED BY PHA, as follows:
That effective with the first pay period in January, 1999,the mandatory
employee contributions to the Contra Costa County Employees' Retirement
System made,and to be made,by employees of the Housing Authority of the
County of Contra Costa shall be picked up by the Housing Authority of the
County of Contra Costa in accordance with Section 414(h)(2)of the Internal
Revenue Code,and the same shall be treated as employer contributions for the
purposes of federal and State income taxation.
PASSED AND ADOPTED ON January 5, 1999 by the
following vote of the Commissioners.
AYES: Supervisors Gioia, Uilkema, Gerber, DeSaulnier, and Canciamilla
NOES: None
ABSENT: None
ABSTAIN: None
I HEREBY CERTIFY THAT THIS IS A
TRUE AND CORRECT COPY OF AN
ACTION TAKEN AND ENTERED ON THE
MINUTES OF THE BOARD OF
COMMISSIONERS ON THE DATE,SHOWN.
ATTESTED G I `7
PHIL BATC14ELOR,CLERK OF
THE BOARD OF COMMISSIONERS
AND COUNTY ADMINISTRATOR.
BY
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