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...
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