Reso 1382-06/2011RESOLUTION NO. 1382
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE VALLECITOS WATER DISTRCT
TO TAX DEFER MEMBER PAID CONTRIBUTIONS — IRC 414(H)(2)
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WHEREAS, the governing body of the Vallecitos Water District has the authority to
implement the provisions of section 414(h)(2) of the Internal Revenue Code (IRC); and
WHEREAS, the Vallecitos Water District has determined that even though the
implementation of the provisions of section 414(h)(2) IRC is not required by law, the tax
benefit offered by section 414(h)(2) IRC should be provided to all employees who are
members of the California Public Employees' Retirement System:
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Vallecitos
Water District as follows:
SECTION 1. That the Vallecitos Water District will implement the provisions of
section 414(h)(2) Internal Revenue Code by making employee contributions pursuant to
California Government Code Section 20691 to the California Public Employees'
Retirement System on behalf of all its employees or all its employees in a recognized
group or class of employment who are members of the California Public Employees
Retirement System. "Employee contributions" shall mean those contributions to the
Public Employees' Retirement System which are deducted from the salary of
employees and are credited to individual employee's accounts pursuant to California
Government Code section 20691.
SECTION 2. That the contributions made by the Vallecitos Water District to the
California Public Employees' Retirement System, although designated as employee
contributions, are being paid by the Vallecitos Water District in lieu of contributions by
the employees who are members of the California Public Employees' Retirement
System.
SECTION 3. That employees shall not have the option of choosing to receive the
contributed amounts directly instead of having them paid by the Vallecitos Water District
to the California Public Employees' Retirement System.
SECTION 4. That the Vallecitos Water District shall pay to the California Public
Employees' Retirement System the contributions designated as employee contributions
i from the same source of funds as used in paying salary.
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SECTION 5. That the amount of the contributions designated as employee
contributions and paid by the Vallecitos Water District to the California Public
Employees' Retirement System on behalf of an employee shall be the entire
contribution required of the employee by the California Public Employees' Retirement
Law (California Government Code Sections 20000, et seq.).
Resolution No 1382 Page 2
SECTION 6. That the contributions designated as employee contributions made by
Vallecitos Water District to the California Public Employees' Retirement System shall be
treated for all purposes, other than taxation, in the same way that member contributions
are treated by the California Public Employees' Retirement System.
PASSED, APPROVED AND ADOPTED by the Board of Directors of the Vallecitos
Water District at a regular meeting held on the 6th day of July, 2011, by the following roll
call vote:
AYES: FERGUSON, GENTRY, HERNANDEZ, SHELL, POLTL
NOES:
ABSTAIN:
ABSENT:
W. Poltl, President
of Directors
tos Water District
ATTEST:
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Dennis O. Lamb, Secretary
Board of Directors
Vallecitos Water District