HomeMy WebLinkAboutResolution 54-1997 RESOLUTION 54-97
RESOLUTION DECLARING THE CITY OF BROOKINGS' INTENT TO
BECOME A TAX-QUALIFYING PURCHASE LJNIT IN ORDER THAT ITS
MEMBERS MAY PURCHASE PRIOR SERVICE CREDIT ON A TAX-
DEFERRED BASIS
BE IT RESOLVED AS FOLLOWS:
WHEREAS, Senate Bi1123 of the 1996 Legislative Session offers members of tax-
qualifying purchase units of the South Dakota Retirement System(SDRS)the option of receiving
a tax advantage when purchasing uncredited service in SDRS by making the purchase on a tax-
deferred basis;
WHEREAS, the City of Brookings wishes to offer this option to its permanent, full-time
employees, all of whom are members of SDRS;
WHEREAS,the City of Brookings agrees to transmit all purchase data by electronic
media as required by SB23 and understands that reporting monthly contributions and purchase
data on diskette is a condition which must be met in order to participate;
WHEREAS, the City of Brookings understands and agrees to the following points:
• Employees may purchase uncredited service only with pre-tax dollars deducted from
their salaries. No cash purchases will be allowed.
• Employees who have an existing contract have two choices - switch to the tax-
deferral plan after July l, or terminate their contract.
• All contracts for purchase are irrevocable - i.e., an employee may not suspend
payments before the purchase is completed.
• Employees may not exceed the IRS m�imum annual exclusion allowance.
NOW, THEREFORE, BE IT RESOLVED, that the City of Brookings shall become a
t�-qualifying purchase unit of the South Dakota Retirement System effective July 1, 1997,
under the terms and conditions of Senate Bi1123 of the 1996 Legislative Session.
BE IT FURTHER RESOLVED that a copy of this RESOLUTION shall be transmitted to
South Dakota Retirement System as soon as possible after adoption.
Passed and approved this 17th day of June, 1997.
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