|
ITEM: |
ADMINISTRATIVE
COMMITTEE |
|||
|
|
||||
|
1. |
CONSIDER ADOPTION OF RESOLUTION
NO. 2005-09 ELECTING TO PARTICIPATE IN THE |
|||
|
|
||||
|
Meeting
Date: |
October 6,
2005 |
Budgeted: N/A |
||
|
|
|
|
||
|
From: |
David A.
Berger, |
Program/ |
|
|
|
|
General
Manager |
Line Item No.: |
||
|
|
|
|
||
|
Prepared
By: |
|
Cost Estimate: |
None |
|
|
|
||||
|
General
Counsel Approval: Yes |
||||
|
Committee Recommendation: The Administrative Committee reviewed this
item on October 6, 2005 and recommended _______________________. |
||||
|
CEQA
Compliance: N/A |
||||
SUMMARY: By filing a Resolution with the California Public Employees’ Retirement System (CalPERS), employers are allowed to extend the pick-up of member contributions, under Internal Revenue Code section 414(h)(2), to service credit purchases. This provision of the tax code allows retirement contributions, made directly from payroll, to be pre-tax. Individual employers who opt to participate in this “pick-up” program provide their employees, who elect to participate, with the benefit of deferring income tax liability on member service credit purchases. The effective date for the commencement of this pre-tax plan can not be any earlier than the date the completed resolution is received and approved in CalPERS.
RECOMMENDATION:
That the Board elect
to participate in the CalPERS pre-tax payroll deduction plan for service credit
purchases, by adoption of the attached Resolution (Exhibit
1-A). This item was considered by the
Administrative Committee on October 6, 2005, at which time the committee
recommended ___________________.
IMPACTS TO STAFF/RESOURCES: Adopting the attached resolution will have no
impact on staff resources. Service
credit purchases will be paid to CalPERS by District check. However, deductions
from the paychecks of participating employees will cover those payments.
BACKGROUND: The District has
previously adopted a resolution allowing employees to take advantage of IRS
provisions regarding pre-tax contributions to the California Public Employees
Retirement’ System. This resolution
involved the District “pick-up” of member contributions towards retirement
premiums. Resolution 2005-09 would
extend the benefit of pre-tax status to employee payroll deductions for the
purchase of retirement service credit.
EXHIBITS
1-A Resolution No.
2005-09
U:\staff\word\committees\Admin\2005\20051006\01\item1.doc