Res11 15136 - Laserfiche WebLink

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OS/22/2011 WHEREAS, it is in the interests of all parties for such employee contributions toward the employer cost of retirement to be made on a pre-tax basis in accordance with Section 414(h)(2) of the IRC; and WHEREAS, in order to implement the provisions of Section 414(h)(2) to include these contributions, a resolution must be adopted to clearly reflect the proposed action; NOW, THEREFORE; BE IT RESOLVED BY THE COUNCIL OF THE CITY OF REDWOOD CITY AS FOLLOWS: 1. The City has implemented the provisions of Section 414(h)(2) of.the Internal Revenue Code with respect to the statutorily required employee contributions. 2. The cost sharing contributions in the respective Memorandums of Understanding under Government Code §20516(�, as described in paragraph 4 below, shall be designated as pre-tax under Section 414(h)(2) of the Internal Revenue Code. 3. Payments by employees that are contributed to PERS, including the payments toward the employer cost of retirement, are employee contributions for the purposes of Section 414(h)(2) of the Intemal Revenue Code, but are not "member contributions" as defined by CaIPERS. 4. The employee contributions toward the employer cost of retirement will occur as follows: Executive Management: Effective January 1, 2012 each unit member . will pay two and one-half percent (2.5%) toward the employer cost of retirement � Effective January 1, 2013 each unit member will pay five percent (5%) toward the employer cost of retirement Chief O�cers Association: Effective January 1, 2012 each unit member will pay two and one-half percent (2.5%) toward the employer cost of retirement Effective January 1,.2013 each unit member will pay five percent (5%) toward the employer cost of retirement Redwood City Management Employees Association: ATTY/RES0.27491 IMPLEMENTING SECTION 414(H) (2) OF THE INTERNAL REVENUE CODE . RESO. # 15736 � �� MUFF # 904 2