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Resolution 03-020 Establishing Substitute Social Security Program for Employees CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON RESOLUTION NO. 03-020 A RESOLUTION OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, ESTABLISHING A SUBSTITUTE SOCIAL SECURITY PROGRAM FOR • CITY EMPLOYEES. WHEREAS, the City of Spokane Valley has employees who render valuable services; and WHEREAS,the City Council has authorized participation in the Washington Public Employees Retirement System(PERS) which is a qualified retirement program under IRS rules; and WHEREAS, the City Council is authorized by state and Federal law to establish a social security substitute program for employees covered by a qualified retirement program (PERS), and WHEREAS, the establishment of a social security alternative program for such employees serves the interests of the City by enabling it to provide reasonable retirement security for its employees with increased flexibility in its personnel management system; and WHEREAS, the establishment of a substitute social security program pursuant to Section 401 of the Internal Revenue Code qualifies as an alternative to Social Security and will benefit employees by providing funds for retirement and funds for their beneficiaries in the event.of death; and WHEREAS,the City finds that the International City/County Management Association Retirement Corporation(ICMA-RC) offers an ideal social security substitute program for cities such as Spokane Valley; NOW THEREFORE, be it resolved by the City Council of the City of Spokane Valley, Spokane County, Washington, as follows: Section 1. Social Security Substitute Program - Participation. The City Council hereby adopts the ICMA-RC administered 401 Social Security(FICA) Replacement Plan, said plan to be effective upon incorporation. City and employee contribution rates and maximums shall match FICA contribution rates and maximums as published in the Internal Revenue Service's Employer's Tax Guide, IRS Publication 15. • Section 2. Authorization to Implement the FICA Replacement Plan. The City Council hereby authorizes the City Manager to execute the necessary agreement with ICMA-RC and to ensure that qualified employees are enrolled in the plan in a timely manner. Section 3. Effective Date. This Resolution will take effect on the official date of incorporation. Adopted this (,2 day of , 2003. M4 rc. \;;.&1: Mayor Michael DeVlemi g G ATTEST: • Interim City Clerk, Ruth Muller • Approved as to Form: e terim 'ity Att, taliley M. chwartz •