Reso 1039-08/1997Employer Code: 0721
RESOLUTION NO. 1039
EMPLOYER PICKUP RESOLUTION
PRE-TAX PAYROLL DEDUCTION PLAN
FOR SERVICE CREDIT PURCHASES
(CONTRIBUTION CODE 14)
WHEREAS, The Board of Administration of the California Public Employees' Retirement
System (CalPERS) at the April 1996 meeting approved a pre-tax payroll deduction plan for service
credit purchases under Internal Revenue Code (IRC) section 414(h)(2); and
WHEREAS, Vallecitos Water District has the authority to implement the provisions of IRC
section 414(h)(2) and has determined that even though implementation is not required by law, the tax
benefit offered by this section should be provided to those employees who are members of Ca1PERS;
and
WHEREAS, The Board of Directors of the Vallecitos Water District elects to participate in
the pre-tax payroll deduction plan for all employees in the following Ca1PERS coverage group(s):
All Full Time Regular Employees (Miscellaneous)
All Eligible Members of the Board of Directors (Miscellaneous)
NOW, THEREFORE, BE IT RESOLVED:
That the Vallecitos Water District will implement the provisions of IRC section 414(h)(2) by
making employee contributions for service credit purchases pursuant to the California State
Government Code on behalf of its employees who are members of CaIPERS and who have
made a binding irrevocable election to participate in the pre-tax payroll deduction plan.
"Employee contributions" shall mean those contributions reported to CalPERS which are
deducted from the salary of employees and are credited to individual employee accounts for
service credit purchases thereby resulting in tax deferral of employee contributions.
II. That the contributions made by the Vallecitos Water District to Ca1PERS, although
designated as employee contributions, are being paid by the Vallecitos Water District in lieu
of contributions by the employees who are members of CalPERS.
III. That the 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 Ca1PERS.
IV. That the Vallecitos Water District shall pay to CalPERS the contributions designated as
employee contributions from the same source of funds as used in paying salary, thereby
resulting in tax deferral of employee contributions.
Resolution No. 1039
Page 2
V. That the effective date for commencement of the pre-tax payroll deduction plan cannot be any
earlier than July 1, 1996, or the date the completed resolution is received and approved in
Ca1PERS, whichever is later.
VI. That the governing body of the Vallecitos Water District shall participate in and adhere to
requirements and restrictions of the pre-tax payroll deduction plan by reporting pre-tax
payroll deductions when authorized by Ca1PERS for those employees of the above stated
Coverage Group(s) who have elected to participate in this plan.
PASSED, APPROVED AND ADOPTED by the Vallecitos Water District Board of
Directors this 6th day of August, 1997, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
William W. Rucker, Secretary
Board of Directors
Vallecitos Water District
RETURN ADDRESS:
Vallecitos Water District
201 Vallecitos de Oro
San Marcos CA 92069
Cruz, Davy, Ferguson, Hannan, Mason
garet E. Ferg'son, President
Board of Directors
Vallecitos Water District
FOR CALPERS USE ONLY
Pre-tax Payroll Deduction Plan Effective Date:
Approved By: Title:
MEMBER SERVICES DIVISION, Service Credit Section - Unit 830