HomeMy WebLinkAboutRESOLUTIONS - 01012000 - 2000-125 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
AS GOVERNING BOARD OF THE IN-HOME SUPPORTIVE SERVICES AUTHORITY
Adopted this Resolution on March 21, 2000 , by the following vote:
AYES: SUPERVISORS GIOIA, UILKEMA, DESAULNIER, CANCIAMILLA, AND GERBER
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
RESOLUTION NO. 2000/125
SUBJECT: Designating In-Home Supportive )
Services Authority Employees' Retirement )
Contributions to the Contra Costa County )
Employees Retirement Association as Employer )
Contributions. )
The Board of Supervisors of the County of Contra Costa, in its capacity as the Governing
Board of the In-Home Supportive Services Authority (IHSS Authority), RESOLVES as follows:
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, 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
provision of IRC Section 414 (h) (2); and
Whereas Government Code Section 31581.2 authorizes the County IHSS Authority,
a Special District, to "pick up", for the sole purpose of deferring income taxes thereon,the
normal contributions made by IHSS Authority employees,
NOW THEREFORE BE IT RESOLVED THAT:
The County Auditor-Controller shall implement the "pick up" of IHSS Authority paid
member contributions to the Contra Costa County Employees Retirement Association effective April
1, 2000.
1. The IHSS Authority shall make member contributions on behalf of its employees,
which shall be in lieu of contributions by its employees to the Contra Costa County
Employees Retirement Association. 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.
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 IHSS Authority "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 IHSS Authority shall be treated as compensation
paid to employees for all other purposes.
3. IHSS Authority paid employer contributions to the Contra Costa County Employees
Retirement Association shall be paid from the same source of funds as is used in
paying the salaries of the affected employees.
Resolution No. 2000/125
4. No employee shall have the option to receive the IHSS Authority contributed
amounts directly instead of having them paid to the Contra Costa County Employees
Retirement Association.
5. The IHSS Authority paid member contributions shall be reported to the Contra Costa
County Employees Retirement Association as employer-paid normal and cost of
living contributions; under Government Code section 31581.2, such contributions
will be credited to the members' accounts in the Contra Costa County Employees'
Retirement Fund.
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.
I hereby certify that this is a true and correct
copy of an action taken by the Board of
Supervisors on the date shown.
ATTESTED: March 21, 2000
PHIL BATCHELOR, Clerk of the
Board of Supervisors and County
. inistr or
By Deputy
CONTACT: Darlene Roth
Orig. Dept: Human Resources
cc: Contra Costa County Employees Retirement Association
County Counsel
Auditor-Controller
Employment and Human Services Department
RESOLUTION No. 2000/125
IHSS (County Special District) RETIREMENT CONTRIBUTIONS
❖ Government Code Section 31851.2 authorizes the IHSS Authority (a Special District)
to participate in this program with Board of Supervisor approval.
❖ Resolution required in order to implement Section 414 (h) (2) of the IRS Code for
"pick up" retirement contributions for designated IHSS workers.
❖ If approved by Board in March, the effective date of implementation is April 1, 2000.
❖ Costs are paid by the IHSS Authority
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