Chapter 3.16 — RETIREMENT SYSTEM

State Law reference— For statutory provisions regarding retirement benefits to county employees, see Gov. Code § 31450 et seq.

The county employees' retirement system heretofore established and now existing in and for the county shall hereafter be subject to the provisions of Section 31679.2 of the Government Code.

(Prior code, § 188)

The county employees' retirement system heretofore established and now existing in and for the county shall on and after October 1, 1968, be subject to the provisions of Sections 31681.5 and 31739.3 of the Government Code, which sections are made applicable to the retirement system.

(Prior code, § 189)

The county employees' retirement system heretofore established and now existing in and for the county shall on and after July 26, 1991, be subject to the provisions of Section 31641.04 of the Government Code, which section is made applicable to the retirement system.

(Ord. 91-019 § 1)

The county employees' retirement system heretofore established and now existing in and for the county shall on and after September 1, 1970, be subject to the provisions of Sections 31875 to 31879 inclusive of the Government Code, which sections are made applicable to the retirement system.

For purposes of the ordinance codified herein granting retroactive cost of living adjustments in retirement allowances, optional death allowances and annual death allowances and not otherwise, the provisions of Article 16.5, Chapter 3, Part 3, Division 4, Title 3 (commencing withSection 31870) of the Government Code is applicable to the retirement system as of January 1, 1968, and the board of supervisors finds that as of January 1, 1968, January 1, 1969, and January 1, 1970, respectively, there had been during the preceding year a cost of living increase in excess of two percent according to the Bureau of Labor Statistics Consumers' Price Index.

(Prior code, § 189.1)

The county employees' retirement system heretofore established and now existing in and for the county shall on and after January 1, 1973, be subject to the provisions of Sections 31870.1 to 31874 inclusive of the Government Code, which sections are made applicable to the retirement system. Increases in contributions of the county, districts and contributing members as provided in Section 31873 of the Government Code shall commence July 1, 1973.

All of the foregoing provisions of this section 3.16.040, and of Government Code sections 31870.1 through 31874 inclusive, are hereby terminated, and made inapplicable, solely with respect to any employees of the county who will be hired, and any elective officers of the county who will commence services in their elective offices, respectively, on or after June 11, 2012, and, in either case, who thereafter will be enrolled as general members or safety members in retirement tier IV or any later adopted retirement tier, as adopted by resolution of the board of supervisors.

(Ord. No. 12-002, § 1, 3-6-2012; prior code, § 189.2)

The county employee retirement system heretofore established and now existing in and for the county shall be subject to the provisions of Section 31725.5 of the Government Code, which section is made applicable to said retirement system and the provisions thereof shall be implemented by the board of retirement. Such provisions shall include application to persons retired for disability before the effective date of this section.

(Ord. 527-A-3, § 1, 1976)

The county employees' retirement system heretofore established and now existing in and for the county shall be subject to the provisions of Section 31641.03 of the Government Code to the extent that all county employee members shall be entitled to have their retirement allowances calculated with credit for one hundred percent of all unused sick leave.

(Ord. 0-83-017, § 1, 1983; Ord. 588, § 1, 1977)

The county employees' retirement system heretofore established and now existing in and for the county shall, on and after December 1, 1979, be subject to the provisions of Sections 31681.52 and 31739.32 of the Government Code, which sections are made applicable to the retirement system.

(Ord. 588-a-1, § 1, 1979)

The purpose of this section 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 of Fresno or any public authority, public agency, or political subdivision participating in the Fresno County employees' retirement association, 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.

(Ord. 0-85-006, § 1)

Unless the context otherwise requires the definitions in this section govern the construction of this section.

A.

Affected Employees. The term "affected employees" shall mean those employees of the county or any public authority, public agency, or political subdivision participating in the county employees' retirement

association, 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" means the county or any public authority, public agency, or political subdivision participating in the county employees' retirement association and subject to Section 414(h)(2) of the Internal Revenue Code.

D.

"Gross income" means the total compensation paid to affected employees by the county or any public authority, public agency, or political subdivision participating in the county employees' retirement association, as defined in the Internal Revenue Code and rules and regulations established by the Internal Revenue Service.

E.

New Elective Authorization for Employee Contributions. The term "new elective authorization for employee contributions" shall mean a written authorization by an affected employee of the county, to the extent that such affected employee is eligible under the provisions of the county employees' retirement law of 1937 as amended, or by adopted resolution of the board of supervisors, to provide such authorization, which authorization is applied for, and duly executed by such affected employee in such manner and form as required by rules stated, or from time to time restated, by the board of supervisors and the board of retirement of the retirement system, and which authorization is so provided as a result of such application delivered to the retirement system on or after October 28, 2013, for such affected employee to make employee contributions to the retirement system with respect to elective purchases of retirement service credit for public service, or redeposits of previously withdrawn member contributions plus interest with the retirement system.

F.

"Post-tax Employee Contributions." The term "post-tax employee contributions" shall mean only those employee contributions with respect to a new elective authorization for employee contributions.

G.

"Retirement system" means that retirement system as made applicable in the county under the provisions of the county employees' retirement law of 1937 as amended.

H.

"Wages" means compensation prescribed to each employees' position as set forth in the county salary resolution.

(Ord. No. 13-018, § 1, 9-24-2013; Ord. 0-85-006, § 1)

A.

Pursuant to the provisions of Section 3.16.110 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 subsection 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 subsection 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 the ordinance codified in this section.

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 subsection A of this section instead of having them paid to the retirement system.

E.

Notwithstanding anything to the contrary in this section, this section (including Section 3.16.110 of this chapter referenced under subsection A of this section), shall not apply to any new elective authorization for employee contributions, or any post-tax employee contributions, made pursuant to the provisions of section 3.16.125 of this chapter.

(Ord. No. 13-018, § 1, 9-24-2013; Ord. 0-85-006, § 1)

Notwithstanding the provisions of other chapters of this code, the gross wages of affected employees shall be reduced by the amount of employee contribution made by the employer pursuant to the provisions of this chapter.

(Ord. 0-85-006, § 1)

This chapter shall be operative only as long as the employer pickup of employee contributions continues to be excludable from gross income of the employee under provisions of the Internal Revenue Code.

(Ord. 0-85-006, § 1)

A.

Notwithstanding anything to the contrary in this chapter, the provisions of this section shall apply solely with respect to any new elective authorization for employee contributions, including any post-tax employee contributions. This chapter shall not authorize, nor shall it require, the county to pay or make any employee contributions on behalf of or in lieu of any affected employees of the county, or to exclude from the gross income of such affected employees any employee contributions, pursuant to the provisions of Sections

authorization for employee contributions.

B.

Any affected employee of the county who delivers to the retirement system a new elective authorization for employee contributions shall only be allowed to make post-tax employee contributions to the retirement system through county payroll deductions to the extent provided in such new elective authorization for employee contributions. Such post-tax employee contributions to the retirement system shall be treated as employee contributions in determining tax treatment under the Internal Revenue Code of the United States, and the gross income of such affected employee shall not be reduced by the amount of the post-tax employee contributions made by such affected employee pursuant to the provisions of this subsection B.

C.

Post-tax employee contributions made under subsection B of this section shall be paid from the same source of funds as used in paying the wages to affected employees of the county.

D.

Post-tax employee contributions made by the affected employees of the county under subsection B 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 by the affected employees of the county prior to the effective date of the ordinance codified in this section.

E.

No provision in this chapter shall be construed so as to permit or extend an option to affected employees of the county to directly receive the post-tax employee contributions made by such affected employees pursuant to subsection B of this section instead of having them paid to the retirement system.

(Ord. No. 13-018, § 1, 9-24-2013)