HomeMy WebLinkAbout4.03 EmployeePaid 401KCITY CLERK
File # ❑17N&-0®
AGENDA STATEMENT X boo- 5,0
CITY COUNCIL MEETING DATE: August 16, 2005
SUBJECT: Establishment of Employee Paid 401(a) Plan
Report Prepared by Carole A. Perry, Administrative Services
Director and Fred Marsh, Finance Manager
ATTACHMENTS: Resolution
RECOMMENDATION: 1. Adopt Resolution to establish Employee Paid 401(a)
Governmental Money Purchase Plan
2. Authorize the City Manager to execute the Administrative
Service Agreement for the above noted plan
FINANCIAL STATEMENT: None. The City is not making M contributions on behalf of
employees to this plan. Employee participation is voluntary and is
totally funded by employee contributions.
DESCRIPTION: On June 21, 2005, the City Council adopted Resolution No. 116-05, which amended
the City's Benefit Plan. Included in the amendment provisions to the benefit plan was a provision
(covered in Resolution No. 116-05, Section 9) to allow employees to participate on a voluntary basis, in
additional deferred compensation programs administered by the International City Management
Association (ICMA); with the stipulation that any such program would not require additional
contributions by the City on behalf of employees.
Currently, the City is enrolled in a Section 457 deferred compensation program, which allows employees
to defer a portion of their salary for retirement, subject to limitations established by the Internal Revenue
Service (IRS). ICMA has worked with the IRS to establish new deferred compensation programs, which
also permit employees to defer additional funds toward retirement.
One of these options is the 401(a) Governmental Money Purchase Plan, which allows employees to defer
a portion of their salary and accrued vacation benefits for retirement, over and above the amount that can
be deferred into the Section 457 deferred compensation program presently being offered by the City.
This program will allow employees to direct the amounts deferred into investments of their choice and are
subject to limitations as established by the IRS.
RECOMMENDATION: It is recommended that the City Council adopt the attached resolution to
establish an Employee Paid 401(a) Governmental Money Purchase Plan, and authorize. the City Manager
to execute the Administrative Service Agreement for the above noted plan.
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COPIES TO: Michele Martin, ICMA
Page 1 of 1
ITEM NO.
G/Finance/Agenda for 401 Plan
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RESOLUTION NO. - 05
( '7:, I
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
*********
ADOPTING ADMINISTRATIVE SERVICE AGREEMENTS TO ESTABLISH A NEW
DEFERRED COMPENSATION PROGRAM: A 401 (a) GOVERNMENTAl" MONEY PURCHASE
PLAN
WHEREAS, On June 21, 2005, the City Council adoptcd Resolution No. 116-05, which amended
the City's Benefit Plan; and
WHEREAS, Included in the amendment provisions to the benefit plan was a provision to allow
employees to participate, on a voluntary basis, in additional deferred eompensation programs administered
by the International City Management Association (ICMA) and
WHEREAS, These programs would not require any additional eontributions by the City on behalf
ofemployees; and
WHEREAS, ICMA has worked with the Internal Revenue Service (IRS) to establish new deferred
compensation programs, one of which being the 401(a) Governmental Money Purehase Plan, whieh will
allow employees to defer additional funds towards retirement on a tax deferred basis; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby adopt the following:
The ICMA Retirement Corporations' 401 (a) Governmental Money Purchase Plan.
PASSED, APPROVED AND ADOPTED this 16th day of August, 2005.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
G.-\Finance StajJ\FredlResolution 4Ul Plan.DOC
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