The purpose of this chapter is to implement the provisions contained in Section 414(h)(2) of the Internal Revenue Code of the United States concerning the tax treatment of employee contributions paid by the City 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.
SECTION HISTORY
Added by Ord. No. 160,500, Eff. 12-21-85, Oper. 12-22-85.