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6.2C <br /> REP�R„�. Page 1 <br /> To the Honorable Mayor and City Counci! <br /> From the Ci Mana er <br /> October 13, 2008 <br /> SUBJECT <br /> Adtninistrative change with the Califomia Public Emplayees Retirement System (CaiPERS} for <br /> Pre-tax Payroil Deductions. <br /> RECOMMENDATit1N <br /> Approve a Resofution designating alt Miscepaneous and ali Sa#ety Coverage groups eligible for <br /> service credit purchases, to continue to allow the City ta participate in the CaIPERS Pre-Tax <br /> (tax-deferret!)Payroll Deduction Pian. <br /> BACKGROUND <br /> In July of 1995, the City adopted a resolution allowing employees to participate in#he CaIPERS <br /> Pre-Tax Payraq Deduetion Plan fo� seroice credit purchases far employees covered in #he <br /> foilowing groups: 70001-Miscellaneous, 74t301-Fire, 75001-Police. <br /> In November 2006, the Ciry amended its contract wi#h CaIP�I�S. This action created a new <br /> coverage group: 70002-�Misce(laneaus. !n arder to allow pre-tax deductions, the City must now <br /> adapt a resolution to designate the new coverage group as being eligible far the pre-tax <br /> designation. This was not done when the CaIPERS contract was amended in 2006. This is an <br /> administrative change that has no'smpact on existing Ca1PERS benefits. <br /> CaIPERS recommended #hat the City specify that aH Misc:etlaneous and all Safety graups are <br /> eligible to participate in the plan in order for the City to avoid having to amend its contract in the <br /> future. <br /> A�r�RNarnes <br /> tf the City does not designate the approp�iate coverage groups for pre-tax payrol! deductions, <br /> employees belonging to certain coverage groups who request (pre-tax) payroii deductians to <br /> purchase additianal service cred�wifl have deduc#ions taken out anly on an after-tax basis. <br /> FISCA�iMPACT <br /> No,ne. <br /> f� "'" w'[�tiY�..s �����- r.� <br /> y �=""C�'`�� <br /> Caroiyn McLaurin Robert Bell � <br /> Management Anaiyst U Human Resources Director <br /> ,� <br /> �`"`'�-'�_,��.��..(��° --�'�- � ;�.��'".,�c���r�{y"� <br /> Peter Ingram `° <br /> City Manager <br /> AITACHNlEAI"CS <br /> 1. Calpers Pre-Tax (Tax Deferred) Payroi( Deduction Plan Far Service C�edit <br /> Purchases R�solution <br />