HomeMy WebLinkAboutResolution 1991 - 0160•
RESOLUTION NO.91-160
APPROVING PROVISIONS FOR SATISFACTION OF PAYMENT
OF FICA TAXES FOR DIRECTOR-EMPLOYEES MANDATED BY
FEDERAL OMNIBUS BUDGET RECONCILIATION ACT OF 1990
A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS OF
COUNTY SANITATION DISTRICTS NOS.1,2,3,5,6,7,
11,13 AND 14 OF ORANGE COUNTY,CALIFORNIA,APPROVING
PAYMENT BY THE DISTRICTS TO THE DISTRICTS’DEFERRED
COMPENSATION PLAN FUND ON BEHALF OF DISTRICTS’
DIRECTOR-EMPLOYEES IN LIEU OF CONTRIBUTIONS
PURSUANT TO THE FEDERAL INSURANCE CONTRIBUTIONS ACT
(“FICA”)AS MANDATED BY THE FEDERAL OMNIBUS BUDGET
RECONCILIATION ACT OF 1990
*****
WHEREAS,the United States Congress enacted the Federal
Omnibus Budget Reconciliation Act of 1990 (“OBRA”),changing
several provisions of the Federal Social Security Act,as applied to
local government entity employees;and,
WHEREAS,OBRA amended the prior law by adding a new Section
3121(b)(7) (F)
to the Internal Revenue Code,by expanding the
definition of “employment”for Federal Insurance Contribution Act
(“FICA”)tax purposes to include service performed after July 1,
1991 as an employee for a local government entity,unless the
employee is a member of a retirement system of such entity;and,
WHEREAS,the provisions of OBRA require compliance with the
requirement to make FICA contributions on behalf of local
government agencies employees by not later than December 31,1991;
and,
WHEREAS,the Internal Revenue Service has adopted final
regulations under Section 3121(b)(7)(F)of the Internal Revenue
Code,containing rules relating to local government entity
Superseded by 98-4
employees and determination of membership in the local entity
retirement system;and,
WHEREAS,the Districts’Director-Employees are not eligible
for participation in the Districts’Retirement Plan,to wit:County
of Orange Employees Retirement System;and,
WHEREAS,the Internal Revenue Service regulations allow a
contribution,into an Internal Revenue Code Section 457 Deferred
Compensation Plan,,as meeting the requirements for retirement
system contribution,in lieu of making the contributions to FICA;
and,
WHEREAS,the Districts have enacted Resolution No.81-166,
effective October 14,1981,authorizing Districts’Directors to
participate in the Districts’Internal Revenue Code approved
Deferred Compensation Plan;and,
WHEREAS,•the Directors have determined that they can satisfy
the legal requirements of Internal Revenue Code Section
3121(b)(7)(F)in the most cost effective manner by having the
Districts contribute the minimum sum authorized by Internal Revenue
Service regulation,to wit:7.5%of the employee’s compensation to
the Districts’Deferred Compensation Plan Fund.
NOW,THEREFORE,the Boards of Directors of County Sanitation
Districts Nos.1,2,3,5,6,7,11,13 and 14 of Orange County,
California,
DO HEREBY RESOLVE,DETERMINE AND ORDER:
Section 1 Pursuant to Internal Revenue Code Section
3121(b)(7)(F),the Districts approve the payment of the sum equal
2
to 7.5%of the compensation payable to each Director into the
Districts’Deferred Compensation Plan account.Said contributions
will be made in accordance with the Districts’Plan approved under
Internal Revenue Code Section 457,and shall be made on behalf of
each District Director-Employee.
Section 2 Upon’payment of the sums set forth above,no
payments are required nor shall be made on behalf of any of the
Districts’Director Employee pursuant to the Federal Insurance
Contributions Act (“FICA”),except the health insurance portion
(currently 1.45%)of the FICA tax for those Director-Employees who
commenced service with the Districts on or after April 1,1986.
Section 3 Section 4.2 of the Districts’Deferred
Compensation Plan,providing for a minimum annual contribution of
$300.00 per year,is hereby ordered waived on behalf of the
contributions to be made on behalf of each District Director
Employee.
Section 4 That the contributions provided for in Section
1 hereof shall commence with payment of any compensation after
November 1,1991.
PASSED AND ADOPTED at a regular meeting of the Boards of
Directors held this 9th day of October,1991.
TLW:pj(B5)
10102191
3
STATE OF CALIFORNIA)
)SS.
COUNTY OF ORANGE )
~
I,RITA J.BROWN,Board Secretary of the Boards of Directors of
County Sanitation Districts Nos.1,2,3,5,6,7,11,13 and 14 of Orange
County,California,do hereby certify that the foregoing Resolution No.91—160
was passed and adopted at a regular meeting of said Boards on the 9th day of
October,1991,by the following vote,to wit:
AYES:Fred Barrera,Bob Bell,Buck Catlin,John Collins,John C.Cox,
Jr.,Norman E.Culver,Burnie Dunlap,Richard B.Edgar,William
D.Ehrle,James V.Evans,James H.Flora,Peter Green,Don R.
Griffin,Dan Griset,John M.Gullixson,Evelyn Hart,Jack
Kelly,Frank Laszlo,William D.Mahoney,Robert H.Main,Pat
McGuigan,Keith A.Nelson,Irv Pickler,Ruthelyn Plummer,
Leslie A.Pontious,Charles E.Puckett,Miguel Pulido,Don R.
Roth,Phil Sansone,Sal A.Sapien,Mark Schwing,Sally Anne
Sheridan,Jim Silva,Roger R.Stanton,Peer A.Swan,Charles E.
Sylvia,James A.Wahner
NOES:None
ABSENT:Walter K.Bowman,Carrey J.Nelson,Arthur G.Newton
IN WITNESS WHEREOF,I have hereunto set my hand and affixed the official
seal of County Sanitation District No.1 on behalf of itself and Districts
Nos.2,3,5,6,7,11,13 and 14 of Orange County,California,this 9th day
of October,1991.
Rita J.Brown,oard Secretary -
Boards of Directors,County
Sanitation Districts Nos.1,2,~3,5,
6,7,11,13 and 14 of Orange C~uhty,
California