Employee Contribution to Employer Contribution Rate – Pre-Tax. The City has retained specialized legal counsel in order to render a written opinion as to whether or not said employee contributions to the employer-side contribution requirement can be considered on a “pre-tax” basis. The rendered legal opinion is, in the opinion of the Office of the City Attorney, supportive of City treatment of said contributions as “pre-tax”; therefore, the City has undertaken the steps, including adoption of appropriate City Council resolution(s), necessary to allow the Payroll Section to treat these distributions as “pre-tax”. However, it is expressly agreed to and understood by the parties that the City itself has no authority or jurisdiction by which to bind the IRS, the Franchise Tax Board, or any other agency to a determination that said contributions are indeed “pre-tax”. Thus, the parties agree and acknowledge that the City shall have no liability to any individual unit employee, should a taxing agency or other administrative body reject treatment of said contributions as being “pre-tax”.
Employee Contribution to Employer Contribution Rate – Pre-Tax. Effective July 1, 2011
