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HomeMy WebLinkAboutRes 17-08 04/15/2008 RESOLUTION NO. 17-08 A RESOLUTION AUTHORIZING THE VILLAGE OF MOUNT PROSPECT TO PICK UP EMPLOYEE CONTRIBUTIONS REQUIRED OF EMPLOYEES PARTICIPATING IN THE ICMA QUALIFIED SECTION 401 (a) PLAN OF THE VILLAGE OF MOUNT PROSPECT Passed and approved by the President and Board of Trustees the 15th day of April, 2008. Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois, the 16th day of April, 2008. RESOLUTION NO. 17-08 A RESOLUTION AUTHORIZING THE VILLAGE OF MOUNT PROSPECT TO PICK UP EMPLOYEE CONTRIBUTIONS REQUIRED OF EMPLOYEES P ARTICIP A TING IN THE ICMA QUALIFIED SECTION 401 (a) PLAN OF THE VILLAGE OF MOUNT PROSPECT WHEREAS, the Village of Mount Prospect, Cook County, Illinois, is a municipality and a home rule unit of government under Section 6 of Article VII of the 1970 Constitution of the State of Illinois; and WHEREAS, Section 414(h)(2) of the federal Internal Revenue Code of 1986, as amended, authorizes an employer, such as the Village of Mount Prospect, to pick up contributions required to be made by employees who participate in a qualified Section 401(a) Plan of the employer; and WHEREAS, the Village of Mount Prospect has heretofore adopted a qualified Section 401(a) Plan, namely, the ICMA Retirement Plan (the "Plan"), that requires contributions thereto to be made by the employees of the Village of Mount Prospect who participate in the said Plan; and WHEREAS, the Village of Mount Prospect and the employees who participate in the said Plan desire that that the employee contributions to the said Plan shall be picked up by the Village of Mount Prospect in accordance with Section 414(h)(2) of the Internal Revenue Code of 1986, as amended, so that the employee contributions picked up by the Village of Mount Prospect shall be made on a pre-tax basis and shall be treated as employer contributions for tax purposes pursuant to the Internal Revenue Code Section 414(h) and Section 203 of the Illinois Income Tax Act; NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE MOUNT PROSPECT, COOK COUNTY, ILLINOIS, as follows: Section 1: That in accordance with Section 414(h)(2) of the Internal Revenue Code of 1986, as amended, the Village of Mount Prospect will pick up employee contributions paid to the said Plan. Section 2: That the pick-up of contributions authorized pursuant to this Resolution shall apply to all employees of the Village of Mount Prospect who are now participating and who hereafter shall participate in the said Plan. Section 3: That employee contributions to the said Plan, although designated as employee contributions, shall continue to be deducted from the wages of the employees in question, but the said employee contributions shall be treated as employer contributions paid by the Village of Mount Prospect, in lieu of the required employee contributions, in determining federal and Illinois income tax treatment under the Internal Revenue Code of 1986, as amended and the Illinois Income Tax Act. Section 4: That employees participating in the said Plan shall not have any cash or deferred election right (that is, a right to elect to receive cash in lieu of the employee contributions that are picked up pursuant to this Resolution), nor any right to opt-out of the pick up of their contributions to the same Plan pursuant to this Resolution, nor any right to receive the picked up amounts directly instead of having them paid into the said Plan by the Village of Mount Prospect. Section 5: That this Resolution shall be in full force and effect upon its adoption and applies only prospectively. Section 6: That all motions and resolutions or parts thereof in conflict with the provisions of this Resolution are, to the extent of such conflict, hereby repealed. Section 7: That if any section, paragraph, clause or provision of this Resolution shall be held invalid, such invalidity shall not affect any of the other sections, paragraphs, clauses or provisions of this Resolution. ADOPTED this 15th day of April, 2008 by the Mayor and Board of Trustees of the Village of Mount Prospect, Cook County, Illinois, pursuant to a roll call vote as follows: AYES: Hoefert, Juracek, Korn, Zadel NAYES: None ABSENT: Corcoran, Wilks PASSED and APPROVED this 15th day of April, 2008. ATTEST: [SEAL] /-~ '?7S~cP. . M. tfsaAngell \ . Village Clerk '