HomeMy WebLinkAbout2004-77 - Accumulated Leave Conversion ProgramRESOLUTION NO. 2004- 77
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF NEWPORT BEACH TO PROVIDE AN
ACCUMULATED LEAVE CONVERSION PROGRAM
WHEREAS, it is to be determined to be in the best interest of the City and its
employees to provide an Accumulated Leave Conversion Program to eligible
employees;
WHEREAS, the City is a member of the Public Agency Retirement System
(PARS) Trust, which has made available an Accumulated Leave Conversion
Plan (the "Plan ") supplementing CalPERS and qualifying under the relevant
sections of the Internal Revenue Code and the California Government Code;
WHEREAS, the City wishes to provide for certain mandatory employee
contributions by employees who irrevocably elect to participate in the Plan;
WHEREAS, the City wishes to provide that the mandatory employee
contributions will be picked up by the City and paid directly by the City to the
Plan, as set forth in Section 414(h) of the Internal Revenue Code of 1986, as
amended.
NOW, THEREFORE, BE IT RESOLVED it resolved that:
1. The City Council, being a member of the PARS Trust, hereby adopts
the PARS Accumulated Leave Conversion Plan, as part of the City
Retirement Program, effective July 1, 2004, which Plan allows for
employees to irrevocably elect to participate in the Plan that would
require them to have a portion of their accrued leave at the time of
termination contributed to the Plan as a mandatory employee
contribution ( "Mandatory Contributions "); and
2. The City Council hereby agrees to pick up such Mandatory
Contributions and pay them directly to the Plan. Such contributions
shall satisfy the requirements of 414(h) of the Internal Revenue Code
of 1986, as amended, and therefore are not intended to be includable
in the employee's income until distributed from the Plan; and
3. The City Council hereby appoints the Human Resources Director, or
his /her successor or his /her designee as the City's Plan Administrator
for the Public Agency Retirement System; and
4. The City's PARS Administrator is hereby authorized to execute the
PARS legal and administrative service documents on behalf of the City
to implement a PARS supplemental plan to CalPERS. In addition. if
the City's PARS Administrator finds that the PARS supplemental plan
benefit must be limited under Section 415 of Internal Revenue Code,
then the Plan Administrator will implement replacement benefit
programs at no additional cost to the City.
ADOPTED this 24" day of August, 2004.
ATTEST:
CITY CLERK
MAYOR
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH
I, LaVonne M. Harkless, City Clerk of the City of Newport Beach, California, do
hereby certify that the whole number of members of the City Council is seven; that the foregoing
resolution, being Resolution No. 2004 -77 was duly and regularly introduced before and adopted by
the City Council of said City at a regular meeting of said Council, duly and regularly held on the 24ee
day of August, 2004, and that the same was so passed and adopted by the following vote; to wit:
Ayes: Heffernan, Rosansky; Adams, Bromberg, Webb, Nichols, Mayor Ridgeway
Noes: None
Absent: None
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 25th day of August, 2004.
(Seal)
City Clerk
Newport Beach, California