Title
Treasurer-Tax Collector recommending the Board:
1) Adopt and authorize the Chair to sign Resolution 046-2025 establishing the County of El Dorado 401(a) Deferred Compensation Plan for Eligible Employees, approving the 401(a) Plan documents, authorizing the Treasurer-Tax Collector to execute documents implementing the 401(a) Plan, and directing the Auditor-Controller to implement the 401(a) Plan contributions;
2) Approve and authorize the Treasurer-Tax Collector to execute the Administrative Services Agreement 9518 with Nationwide Retirement Solutions, Inc. to provide record keeping and administrative services for the 457(b) Deferred Compensation Plan, Deferred Compensation Plan for Social Security Replacement for Part-Time, Seasonal, and Temporary Employees (OBRA Plan), and 401(a) Deferred Compensation Plan for Employer Contributions for an initial term of five (5) years from date of execution, with renewal of up to five (5) additional one-year periods for a total agreement term of ten (10) years, at the annualized compensation of 0.15% (15 basis points) of the Plans' account value to be funded out of the participants' assets in the Plans; and
3) Authorize the Treasurer-Tax Collector to execute further amendments to Administrative Services Agreement 9518, including renewal options, that do not increase the compensation or the total agreement term, contingent upon County Counsel and Risk Management approval.
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
The Treasurer-Tax Collector's Office administers deferred compensation plans for the benefit of County employees. Currently, there are plans offered to employees by two providers, Nationwide and CalPERS.
The County has two Plans with Nationwide as the provider, the El Dorado County 457 Deferred Compensation Plan for eligible employees and the Deferred Compensation Plan for Social Security Replacement for part-time, seasonal, and temporary employees (OBRA Plan). The OBRA Plan is a mandatory retirement savings program for part-time, seasonal, and temporary employees who are not covered by a retirement system or Social Security.
Nationwide makes available to Employers standard plan documents that meet the requirements for an eligible governmental plan under the Internal Revenue Code. Similar to the 457(b) Plan and OBRA Plan, the Nationwide 401(a) plan documents consist of an Adoption Agreement and the associated Basic Plan Document outlining the general rules and terms of the plan. Employees who receive Employer contributions as part of the MOU negotiations will have said contributions made to the Nationwide 401(a) Plan. The Resolution approved and adopts the Nationwide plan documents as the County's 401(a) Plan, authorizes the Treasurer-Tax Collector to execute the Adoption Agreement, Trust Agreement and any further documents to implement the 401(a) plan, and directs the Auditor-Controller to implement the 401(a) Plan contributions.
Nationwide currently provides record keeping and administrative services for the 457(b) plan and OBRA Plan (Fenix #7072) and will provide similar services for the 401(a) Plan. By consolidating the administrative services for all three plans into a new 10-year agreement, we are able to take advantage of pricing discount with Nationwide's fees decreasing from 30 basis points to 15 basis points, which would not be offered for a shorter term agreement. Upon effective date, the new agreement will supersede and replace the existing administrative services agreement.
ALTERNATIVES
N/A
PRIOR BOARD ACTION
September 12, 2023, Legistar 23-1483
December 6, 2022, Legistar 22-2125
OTHER DEPARTMENT / AGENCY INVOLVEMENT
CAO, County Counsel, Human Resources, Auditor
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no cost to the General Fund. The costs associated with the voluntary deferred compensation plans and the Nationwide administrative services agreement will be funded out of participating employees' asset in the plan.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Upon Board adoption and approval, please provide a copy of the executed Resolution to the Treasurer-Tax Collector, CAO, County Counsel, Human Resources and Auditor.
STRATEGIC PLAN COMPONENT
Priority: Enhance Employee Retention
Action Item: Attract and retain the best employees by providing competitive compensation, training, and advancement opportunities, and creating a positive and thriving culture.
CONTACT
K. E. Coleman, MBA, Treasurer-Tax Collector