Title
Treasurer-Tax Collector recommending the Board:
1) Adopt and authorize the Chair to sign Resolution 131-2023 approving El Dorado County Amended and Restated 457 Deferred Compensation Plan documents and authorizing the Treasurer-Tax Collector to execute the Adoption Agreement, Amendments, and any further documents required to implement the amended and restated 457 Deferred Compensation Plan;
2) Adopt and authorize the Chair to sign Resolution 132-2023 approving El Dorado County Amended and Restated Social Security Replacement Plan documents for Part-Time, Seasonal, and Temporary Employees and authorizing the Treasurer-Tax Collector to execute the Adoption Agreement, Amendments, and any further documents required to implement the amended and restated Social Security Replacement Plan; and
3) Approve the California Public Employees’ (“CalPERS”) Amended and Restated 457 Deferred Compensation Plan Document.
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
The Treasurer-Tax Collector Department administers deferred compensation plans for the benefit of County employees. Currently, there are plans offered to employees by two providers, Nationwide and CalPERS. County Counsel has reviewed all the plan documents attached in this Board item.
Nationwide
The County has two Plans with Nationwide as the provider, the El Dorado County 457 Deferred Compensation Plan for eligible employees as authorized by Internal Revenue Code 457(b) and the Deferred Compensation Plan for Social Security Replacement Plan for part-time, seasonal, and temporary employees as authorized by the Omnibus Budget Reconciliation Act of 1990 (OBRA). The Social Security Replacement Plan is a mandatory retirement savings program for public employees who are not covered by a retirement system or Social Security. Part-time, seasonal, and temporary employees are not covered by Social Security and are excluded from participating in CalPERS.
The El Dorado County 457 Deferred Compensation Plan document was last revised on September 25, 2012 (Legistar 12-0529) while the Social Security Replacement Plan for part-time, seasonal, and temporary employees under OBRA was last updated effective January 1, 2006.
Recent changes in the law include the Cares Act which provides additional tax benefits for individuals, individual’s spouse, or dependents, diagnosed with COVID 19 who have experienced adverse financial consequences, and the Secure Act which contains 90 provisions aimed at modernizing the retirement system, encouraging additional retirement savings, and easing administrative requirements.
Nationwide makes available to plan sponsors updated plan documents that comply with the specific requirements set out in IRC Section 457(b). The updated 457 plan documents consist of a Basic Plan document and an Adoption Agreement that establishes specific guidelines for what the plan sponsor allows based on the law, and amendments for the CARES Act and to implement the Secure Act to conform to changes in the law and current regulations and practices. The updated Social Security Replacement Plan documents consist of the same Basic Plan document, an Adoption Agreement, amendments for the CARES Act and to implement the Secure Act, and the Social Security Replacement Plan Amendment to qualify the plan as permitted by OBRA.
CalPERS
CalPERS 457 Deferred Compensation Plan was adopted by the Board on November 26, 1996 (Resolution No. 251-96). The Board of Administration for CalPERS administers the employees’ deferred compensation assets, selects the investments, and provides guidance on compliance with IRS regulations. CalPERS 457 Deferred Compensation Plan Document was recently amended and restated to incorporate changes in the law made by the Secure Act, CARES Act, and Secure 2.0 Act of 2022.
ALTERNATIVES
If not approved, County’s Deferred Compensation Plans would be out of compliance with several changes in the law.
PRIOR BOARD ACTION
November 20, 1979, Resolution No. 289A-79
June 18, 1996, Resolution No.139-96
November 26, 1996, Resolution No. 251-96
September 25, 2012, Agenda Item 12-0529
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
N/A
CLERK OF THE BOARD FOLLOW UP ACTIONS
Obtain the Chair's signature on each Resolution (Attachments A, F) and transmit a copy of each to the Treasurer Tax Collector's Office, Attn: Karen Coleman.
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
K. E. Coleman, MBA, Treasurer-Tax Collector