Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 26-R18, Authorizing and Ratifying Amendments to the BENCOR 401(a) and 457(b) Special Pay Plan
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Submitted By: Reyna Hahn, Retirement Analyst, Finance Department
Strategic Plan Link: The City's Goal of a high-performing city government organization.
Executive Summary (General Business): This Resolution authorizes and ratifies the amendments to the BENCOR 401(a) and 457(b) Special Pay Plan; restating the eligibility requirement; increasing the minimum contribution amount; clarifying when employer contributions shall be credited to participant's account; and providing for in-service distribution for DROP participants. This Resolution is to ensure the plan is consistent with contractual obligations and that proper protocol is followed.
Presentation Information: Questions will be answered upon request.
Staff Recommendation: Move that the Council adopt the Resolution.
Alternate Recommendations:
1. Move that the Council amend the recommendation and adopt the Resolution.
2. Move that the Council not approve the Resolution and provide staff with direction.
Background: The BENCOR Special Pay Plan is a retirement program that helps governmental units and covered employees, permanently save up to 7.65% of Social Security and Medicare taxes on certain forms of "special pay". The BENCOR 401(a) and 457(b) Special Pay Plan (SPP) was adopted in 2023 by Resolution 23-R15. The plan is required for the following class of employees: non-union non-sworn employees with no existing Final Pay Deferral Plan in place. The plan states, upon termination of employment, payout of the required employee's accumulated vacation and sick pay, of at least $1,000, is paid directly to BENCOR 401(a) and 457(b) Special Pay Plans.
Issues/Analysis: N/A
Financial Information: No additional cost to the City.
Special Consideration: The amended eligible class of employees, non-union classified non-sworn and sworn e...
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