The purpose of this chapter is to implement the provisions contained in Section 414(h)(2) of the Internal Revenue Code concerning the tax treatment of employee contributions paid by the County on behalf of affected employees. Pursuant to Section 414(h)(2) contributions to a pension plan, although designated under the plan as employee contributions, when paid by the employer in lieu of contributions by the employee, under circumstances in which the employee does not have the option of choosing to receive the contributed amounts directly instead of having them paid by the employer, may be excluded from the gross income of the employee until these amounts are distributed or made available to the employee.
Implementation of Section 414(h)(2) is accomplished through a reduction in wages pursuant to the provisions of this chapter.
(SCC 575 § 1, 1983)
Unless the context otherwise requires, the definitions in this chapter govern the construction of this chapter.
a. 
"Affected Employees." The term "affected employees" shall mean those employees of the County of Sacramento who make employee contributions to the retirement system.
b. 
"Employee Contributions." The term "employee contributions" shall mean those contributions to the retirement system which are deducted from the salary of employees and credited to individual employee's accounts, or required as a condition of obtaining benefits under the retirement system, including retirement service credit for public service and prior service.
c. 
"Employer." The term "employer" shall mean County of Sacramento.
d. 
"Gross Income." The term "gross income" shall mean the total compensation paid to affected employees by the County as defined in the Internal Revenue Code and rules and regulations established by the Internal Revenue Service.
e. 
"Retirement System." The term "retirement system" shall mean that retirement system as made applicable in Sacramento County under the provisions of the County Employees' Retirement Law of 1937 as amended, and ordinance No. 283, passed and adopted April 30, 1941; effective July 1, 1941.
f. 
"Wages." The term "wages" shall mean the compensation prescribed in Chapter 2.78 of this code.
(SCC 575 § 1, 1983)
a. 
Pursuant to the provisions of Section 2.106.040 of this chapter, the employer shall make employee contributions on behalf of affected employees, and such contributions shall be treated as employer contributions in determining tax treatment under the Internal Revenue Code of the United States. Such contributions are being made by the employer in lieu of employee contributions.
b. 
Employee contributions made under paragraph A of this section shall be paid from the same source of funds as used in paying the wages to affected employees.
c. 
Employee contributions made by the employer under paragraph A of this section shall be treated for all purposes other than taxation in the same manner and to the same extent as employee contributions made prior to the effective date of this ordinance.
d. 
No provision in this chapter shall be construed so as to permit or extend an option to affected employees to directly receive the contributions made by the employer pursuant to paragraph A of this section instead of having them paid to the retirement system.
(SCC 575 § 1, 1983)
Notwithstanding the provisions of Chapter 2.78 of this code, the wages of affected employees shall be reduced by the amount of employee contribution made by the employer pursuant to the provisions of this chapter.
(SCC 575 § 1, 1983)
This chapter shall be operative only as long as the County pick-up of employee contributions continues to be excludable from gross income of the employee under provisions of the Internal Revenue Code.
(SCC 575 § 1, 1983)