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<br />RESOLUTION NO. 2005-042 <br /> <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF <br />SANTA ANA TO PROVIDE A PRE-TAX PAYROLL <br />DEDUCTION PLAN FOR EMPLOYEES PURCHASING <br />SERVICE CREDIT IN THE PUBLIC EMPLOYEES' <br />RETIREMENT SYSTEM <br /> <br />BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS <br />FOLLOWS: <br /> <br />Section 1: The City Council hereby finds, determines and declares as follows: <br /> <br />A. The Board of Administration of the California Public Employees' Retirement <br />System (CaIPERS) at the April 1996 meeting approved a pre-tax payroll <br />deduction plan for service credit purchases under Internal Revenue Code (IRC) <br />section 414(h)(2). <br /> <br />B. The City of Santa Ana has the authority to implement the provisions of IRC <br />section 414(h)(2) and has determined that even though implementation is not <br />required by law, the tax benefit offered by this section should be provided to <br />those employees who are member of CaIPERS. <br /> <br />C. The City of Santa Ana elects to participate in the pre-tax payroll deduction plan <br />for all employees in the following CalPERS coverage groups: <br /> <br />All Miscellaneous members <br />All Safety members <br /> <br />D. The City of Santa Ana will implement the provisions of IRC section 414(h)(2) by <br />making employee contributions for service credit purchases pursuant to the <br />California State Government Code on behalf of its employees who are members <br />of CalPERS and who have made a binding irrevocable election to participate in <br />the pre-tax payroll deduction plan. "Employee contributions" shall mean those <br />contributions reported to CalPERS which are deducted from the salary of <br />employees and are credited to individual employees accounts for service credit <br />purchases, thereby resulting in tax deferral of employee contributions. <br /> <br />E. The contributions made by the City of Santa Ana to CalPERS, although <br />designated as employee contributions, are being paid by the City of Santa Ana in <br />lieu of contributions by the employees who are members of CaIPERS. <br /> <br />F. The employees shall not have the option of choosing to receive the contributed <br />amounts directly instead of having them paid by the City of Santa Ana to <br />CaIPERS. <br /> <br />Resolution 2005-042 <br />Page 1 of 3 <br />