Title
Resolution Establishing a Defined Contribution Plan for the City and Approving an Administrative Service Agreement for 457 Plan and New 401a Plan with ICMA-RC
Memorandum
The attached resolution authorizes the execution of an Administrative Services Agreement with ICMA Retirement Corporation (ICMA-RC) to establish a 401A Defined Contribution Plan and continue provision of administrative services for the City's 457 Deferred Compensation Plan with ICMA-RC.
The Administrative Services Agreement has been reviewed by the City Attorney's office. Approval of the proposed Administrative Services Agreement is recommended.
Staff
Prepared by: Mary Joan Fales, Senior Assistant City Attorney
Reviewed by: Robyn Wilkerson, Human Resources and Labor Relations Director
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, The ICMA-RC provides a range of services to public employers for the operation of employee retirement plans;
Whereas, The City adopted the ICMA-RC Section 457 Deferred Compensation Plan (457 Plan) effective May 19, 2001;
Whereas, The existing Administrative Services Agreement for the 457 Plan expires June 30, 2017;
Whereas, The City wishes to establish a 401A Defined Contribution Plan ("401A Plan") for new City non-union employees, effective January 7, 2017, and for other new employees in union groups as negotiated, which serves the interest of the City by enabling it to provide reasonable retirement security for new hires and increased flexibility in its personnel management system; and
Whereas, It is recommended that the City appoint ICMA-RC as Administrator of the 457 and 401A Plans;
RESOLVED, That the City Council establishes a 401A Defined Contribution Plan for new non-union hires, effective January 7, 2017, and other new employees in union groups as negotiated, which assets of the Plan shall be held in Trust, with the ICMA-RC as Trustee, for the exclusive benefit of the Plan participants and their benefic...
Click here for full text