HomeMy WebLinkAboutR-2005-019 Defer Accumulated Vacation PayRESOLUTION NO. R 2005 - 19
A RESOLUTION authorizing the City Manager to take all necessary and appropriate
action to allow city employees separating from service to defer
accumulated vacation pay to the City of Yakima's tax deferred
compensation plan in a manner and under conditions deemed
appropriate by the City Manager.
WHEREAS, the City of Yakima maintains a tax deferred compensation plan for city
employees pursuant to section 457 of the Internal Revenue Code; and
WHEREAS, due to a change in the Internal Revenue Code, it is now possible for
employees to defer accumulated vacation pay to a tax deferred compensation plan under
certain circumstances; and
WHEREAS, tax deferral of accrued vacation pay benefits employees at little or no
administrative cost to the City; and
WHEREAS, the City Council deems it to be in the best interest of the City of Yakima
to allow city employees to defer accumulated vacation pay in a manner and under conditions
deemed appropriate by the City Manager, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized to take all necessary and appropriate action to
allow city employees separating from service to defer accumulated vacation pay to the City
of Yakima tax deferred compensation plan in a manner and under conditions deemed
appropriate by the City Manager.
ADOPTED BY THE CITY COUNCIL this 18th day of January, 2005.
ATTEST: Paul P. George, Mayor
1/�Jvc s.Z
City Clerk
ITEM TITLE:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. )S
For Meeting of: January 18, 2005
A resolution authorizing the City Manager to take all necessary and appropriate
action to allow city employees separating from service to defer accumulated
vacation pay to the City of Yakima's tax deferred compensation plan in a manner
and under conditions deemed appropriate by the City Manager.
SUBMITTED BY: Archie Sutton, Human Resources Manager
CONTACT PERSON/TELEPHONE: Archie Sutton, 575-6090
Sheryl Smith, 575-6090
SUMMARY EXPLANATION:
A recent change to the Internal Revenue Code makes it possible for city employees to tax defer
accumulated vacation pay under certain conditions. Tax deferral benefits city employees at little or no
administrative cost to the City. The City's tax deferred compensation plan administrator, ICMA
Corporation, does not charge any additional fees for this change.
The attached resolution allows the City Manager to take all necessary and appropriate action to
implement the change in a manner and under conditions deemed appropriate by the City Manager.
Resolution X Ordinance Other (Specify)
Contract Mail to (name and address): Phone:
Funding Source: N/A
APPROVED FOR SUBMITTAL: rl� f y}� City Manager
STAFF RECOMMENDATION: Adopt resolution.
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2005-19