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HomeMy WebLinkAboutRESOLUTIONS - 06032004 - 94-70 RNIB BOARD OF SORS, OF CO11TRA COSTA ujwxY,, IFORNIA Adopted this Order on February 1. 1994 by the following vote. AYES: Supervisors Bishop, McPeak, Torlakson and Powers NOES: None ABSENT: None ABSTAIN: Supervisor Smith SUBJECT: County Employees' Retirement Contributions Resolution No. 94/70 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 to "Pick up" , for the sole purpose of deferring income taxes thereon, the normal contributions made by County employees, NOW, THEREFORE, BE IT RESOLVED THAT: With respect to all management and unrepresented employees, and with respect to all employees represented by those recognized employee organizations listed in Exhibit A hereto that have agreed to the County's "pick up" of employee retirement contributions as permitted by Section 414(h) (2) of the Internal Revenue Code, the County Auditor-Controller shall implement the "pick up" , of County-paid member contributions to the Contra Costa County Employees' Retirement Association Retirement System. i 's The County shall make 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, 2.9 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* County-paid employer 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 employer contributed amounts directly instead of having them RESOLUTION 94/ 70 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 normal contributions; such contributions will be credited to the employees's 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, and by this resolution the Board 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. I Itereby certify that this is it true and t;orrect COPY Of an action taken and entered on the minutes of the Board of Supe so on the date shown. ATTESTED: a J AV I I qq PHIL BATCHELOR*Cf#k Ahe Board of superviaftfs VW Administrator Sy .n Aft 1,8 4 J Do" Orig. Dept: County Counsel CC* Auditor-Controller County Administrator Director of Personnel Retirement Administrator MAM/hlb RESOLUTION 94/ am 2 Exhibit A California Nurses Association CCC Appraisers' Association CCC Employees' Association, Local 1 Deputy Sheriffs' Association d" .0 District Attorney Investigators' Association Union of American Physicians & Dentists Professional & Technical Employees Local # 512 United Clerical, Technical & Specialized Employees Local 2700, AFSCME United Professional Fire Fighters IAFF, Local # 1230 Western Council of Engineers J-2:At\RET1RE.RES RESOLUTION 94/ QM3-