HomeMy WebLinkAboutMINUTES - 04221986 - 1.53 (152
BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Re: Judges' Retirement Contributions ) RESOLUTION NO. 86/214
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 employer, 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, § 17501 of the Revenue and Taxation Code incorporates the
provisions of IRC § 414(h) (2) ; and
WHEREAS, Chapter 524, Statutes of 1985, added § 75103.3 to the Government
Code, which section authorizes the County to ."pick up", for the sole purpose of
deferring income taxes thereon, the normal contributions made by county-paid members
of the Judges' Retirement System; and
11 WHEREAS, the State of California has adopted the "pick up" plan with
respect to state-paid judges and the State has received an Internal Revenue Service
ruling dated February 28, 1986 approving the State's plan; and
WHEREAS, the County "pick up" plan for county-paid judges is identical
to the State's plan in all material respects;
NOW, THEREFORE, BE IT RESOLVED THAT:
The County Auditor-Controller shall implement the "pick up" of county-
paid member contributions to the Judges' Retirement System effective with the
May 9, 1986 payday.
1 . The County shall make member contributions on behalf of .
county-paid judicial officers, which shall be in lieu of
contributions by said officers to the Judges ' 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.
2. The amount "picked up" under § 414(h)(2), shall be recouped
through an offset against the salary of each judicial officer
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 judicial officers for all
other purposes.
3. County-paid employer contributions to the Judges' Retirement
System shall be paid from the same source of funds as used
in paying the salaries of the affected judicial officers.
4. No judicial officer shall have the option to receive the
County employer contributed amounts directly instead of
having them paid to the Judges' Retirement System.
5. The County paid member contributions shall be reported to
the Judges' Retirement System as employer-paid normal contri-
butions; under 5 75103.3 such contributions will be credited
to the judges' account in the Judges' 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.
hereby certify that this Is a true and correct copy of
an action taken and entered on the minutes of the
Board of Supervirmrs ontine ate shovin.
ATTESTEd: AA
PEAL BATCI LOR, Clerk o;the Board
of Superviscrs and County Administrator
Deputy
CC : County Administrator
Auditor-Controller
Retirement Board
County Counsel
Superior Court - Presiding Judge
Bay Municipal Court
Delta Municipal Court
Walnut Creek-Danville Municipal Court
Mt . Diablo Municipal Court