Subject:
Title
Adoption of Restated Agreement for ICMA-RC 401(a) Governmental Money Purchase Plan
Body
EXPLANATION AND SUMMARY:
IRS regulations require that governmental plan sponsors using the ICMA-RC 401(a) money purchase retirement plan execute a new adoption agreement by April 30, 2016. The restatement must be made through a proactive adoption process and is to be effective retroactively to July 1, 2007. (The 401(a) money purchase plan replaced the full-time civilian employee defined-benefit retirement plan in January 2006.) Town Council must adopt a resolution for the purposes of (a) restating adoption of the purchase plan; and (b) authorizing the Town Manager to execute the Adoption Agreement with the ICMA Retirement Corporation and other documents required to put the resolution into effect.
Departmental Recommendation: I recommend that Council approve the resolution adopting the Restated Agreement for ICMA-RC 401(a) Governmental Money Purchase Plan and authorize the Town Manager to execute adoption agreement with the ICMA Retirement Corporation and other documents required to put the resolution into effect.
Finance Recommendation: Recommend Approval
Purchasing Recommendation: N/A
Town Attorney Recommendation: The Town is currently preparing an RFP to solicit proposals for plans with more competitive management fees. The Town must have a plan in place during this process, and Town Council may approve the proposed resolution in its discretion.
Town Manager's Recommendation: I recommend the Town Council adopt the Restated Agreement for ICMA-RC 401(a) as presented.
Cost and Financing: N/A
Account Number: N/A
Decision Needed by This date: N/A
PROPOSED/SUGGESTED MOTION
Recommended Action
"I move to adopt the Restated Agreement for ICMA-RC 401(a) Governmental Money Purchase Plan and (b) authorize the Town Manager to execute the Adoption Agreement with the ICMA Retirement Corporation and other documents required to put the resolution into effect.”
Or
Other action deemed necessary by Council.