Los Angeles County Municipal Code Ch. 5.21 Employee Contributions to Pension Plans

A.

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.

B.

Implementation of Section 414(h)(2) is accomplished through a reduction in wages pursuant to the provisions of this chapter.

(Ord. 83-0125 § 1 (part), 1983.)

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

A.

"Affected employees" means those employees of the county who make employee contributions to the retirement system.

B.

"Employee contributions" means 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 of Los Angeles.

D.

"Gross income" means 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 Code.

E.

"Retirement system" means that retirement system as made applicable in Los Angeles County under the provisions of the County Employees Retirement Law of 1937, as amended, and Chapter 5.20 of this code.

F.

"Wages" means the compensation prescribed in Title 6 of this code.

(Ord. 83-0125 § 1 (part), 1983.)

A.

Pursuant to the provisions of Section 5.21.040 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 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 August 26, 1983, the effective date of the ordinance codified in this chapter.

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.

(Ord. 83-0125 § 1 (part), 1983.)

Notwithstanding the provisions of Title 6 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.

(Ord. 83-0125 § 1 (part), 1983.)

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

(Ord. 83-0125 § 1 (part), 1983.)

This chapter shall be operative on January 1, 1985.

(Ord. 85-0139 § 1, 1985: Ord. 83-0125 § 1 (part), 1983.)