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Title:
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Adoption of a Resolution Adopting an Employer Pickup Pre-Tax Payroll Deduction Plan for Service Credit Purchases (Contribution Code 14).
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City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION
Staff recommends the City Council adopt a Resolution adopting the Employer
Pickup Pre-Tax Payroll Deduction Plan for Service Credit Purchases (Contribution
Code 14), and rescinding Resolution No. 2002-R050.
DISCUSSION
On March 25, 2002, the City Council adopted Resolution No. 2002-R050
(Attachment No. 1), required by the California Public Employees’ System (PERS) to
allow employees the payment option to purchase PERS service credit, such as prior
military time, on a pre-tax basis. There is no cost to the City to allow employees this
payment option. Resolution No. 2002-R050, specifically identifies eligible
membership coverage groups by number:
• 70001 Miscellaneous
• 70002 Miscellaneous
• 74001 Fire
• 75001 Police
On February 5, 2008, PERS contacted staff requesting that the City adopt a new,
similar resolution (Attachment No. 2), which eliminates specific numeric references
to membership coverage groups, and replaces it with the following broader
language:
• All Miscellaneous Coverage Groups; and
• All Safety Coverage Groups
Meeting Date: 03/10/08 Item Number: C-4
AGENDA ITEM: Adoption of a Resolution Adopting an Employer Pickup Pre-Tax
Payroll Deduction Plan for Service Credit Purchases (Contribution Code 14)
Contact Person/Dept.: Serena Wright Phone Number: 310-253-5640
Fiscal Impact: Yes [] No [x] General Fund: Yes [] No [x]
Public Hearing: [] Action Item: [] Attachments: [x]
Public Notification: Master Notification List and Crystal Alexander, City Treasurer, on
03/05/08
Department Approval:
Serena Wright (02/22/08)
City Attorney Approval:
Carol Schwab (by H. Baker) (03/04/08)
Fiscal Impact Review:
Jeff Muir (03/04/08)
City Manager Approval:
Jerry B. Fulwood (03/05/08) City of Culver City, California
City Council Agenda Item Report
As with the prior Resolution, there is no cost to the City to allow employees this pre-
tax payment option. The broader language will eliminate the necessity for public
agencies to adopt a new resolution each/every time they amend their PERS contract
to add additional coverage groups, thus saving both time and money associated with
adoption of a resolution. Should the City adopt a new coverage group in the future,
the pre-tax payment option to purchase service credit will automatically apply to the
new group.
PERS is contacting every public agency that contracts for pre-tax service credit
purchases to request that they adopt the new resolution containing the broader
language.
FISCAL ANALYSIS
Fiscal impacts, resulting from indirect labor costs associated with administering this
benefit, are minimal. The benefit is already available and being administered, and is
part of the current budget.
ATTACHMENTS
1. Resolution No. 2002-R050
2. Proposed Resolution
MOTION
That the City Council:
Adopt a Resolution adopting an Employer Pickup Pre-Tax Payroll Deduction Plan
for Service Credit Purchases (Contribution Code 14).