File #: 20-0441    Version: 1
Type: Agenda Item Status: Approved
File created: 3/17/2020 In control: Board of Supervisors
On agenda: 6/9/2020 Final action: 6/9/2020
Title: Treasurer-Tax Collector recommending the Board authorize the Chair to sign Amendment IV to the El Dorado County California Deferred Compensation Plan Administration Agreement with Nationwide Retirement Solutions and the CalPERS 457 Plan Roth Adoption Form to add the Roth 457(b) provision as a new option within the Nationwide and CalPERS deferred compensation plans and to allow in-plan conversions. FUNDING: N/A
Attachments: 1. A - Nationwide Roth Amendment IV, 2. B - Blue Route Nationwide Roth Amendment IV-1, 3. C - Nationwide Agreement - Fully Executed 2007, 4. D - Nationwide Amd 1 2009 - Fully Executed, 5. E - Nationwide Amd 2 2011- Fully Executed, 6. F - Nationwide Agreement - Fully Executed 2012, 7. G - Nationwide Amd 3 2015 - Fully Executed, 8. H- County Counsel email approval, 9. I - CalPERS457_Roth_Adoption_Form, 10. J - CalPERS Adoption Agreement, 11. Executed CalPERS 457 Adoption Form, 12. Executed Roth Contribution Amendment

Title

Treasurer-Tax Collector recommending the Board authorize the Chair to sign Amendment IV to the El Dorado County California Deferred Compensation Plan Administration Agreement with Nationwide Retirement Solutions and the CalPERS 457 Plan Roth Adoption Form to add the Roth 457(b) provision as a new option within the Nationwide and CalPERS deferred compensation plans and to allow in-plan conversions.

 

FUNDING:  N/A

Body

DISCUSSION / BACKGROUND

The Roth 457(b) is an investment vehicle that allows employees to make after-tax payroll contributions (i.e., that are not tax deductible in the year of contribution)  and later take tax-free distributions, after certain conditions are met. Earnings on contributions will not be taxed when withdrawn as part of a qualified distribution.  Qualified distributions are allowed after 5 years from the first date of contribution to the Roth 457(b), and after the employee attains the age of 59 1/2, or becomes disabled, dies, or separates from County employment. 

Employees may choose to allocate part or all of their salary deferral to the Roth 457(b) or all or part of their salary deferral to their traditional 457(b) pre-tax account.  Employees may also elect in-plan conversions which transfers existing deferred compensation investment money into the Roth 457(b) investment vehicle. 

ALTERNATIVES

The Board could choose to not approve the Amendment, and employees would be limited to the existing pre-tax 457 Deferred Compensation plan. It is not required that the County provide this savings/investment vehicle; just an expansion of options to employees.

 

PRIOR BOARD ACTION

N/A

 

OTHER DEPARTMENT / AGENCY INVOLVEMENT

Auditor Controller's Office - Payroll Division.

 

CAO RECOMMENDATION / COMMENTS

It is recommended that the Board approve this item.

 

FINANCIAL IMPACT

N/A

 

CLERK OF THE BOARD FOLLOW UP ACTIONS

Upon approval, obtain the Chair's signature on two originals of both the Nationwide Roth Amendment IV and CalPERS 457 Plan Roth Adoption Form and deliver the four signed originals to the Treasurer-Tax Collector's Office, attention Todd Hall.

 

STRATEGIC PLAN COMPONENT

Good Governance.

 

CONTACT

Todd Hall, Treasury Quantitative Specialist, Ext5820