HomeMy WebLinkAboutAgenda Statement 1975/02/18 Item 02AGENDA ITEM N0. [ 2 ]
CHULA VISTA CITY COUNCIL MEETING oF: February 18, 1975
ITEM TITLE: Resolution - Approving Amended Deferred Compensation Plan and
Authorizing its Implementation
INITIATED BY: Director of Finance
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On July 23, 1974 the City Council approved a deferred compensation plan for the
full-time, unclassified service and for any members of the City Council who
may be interested in such a program. As you may remember, the plan is with the
Great Western Savings and Loan Association.
The plan we originally submitted was disapproved by the Internal Revenue Service
even though the plan had been approved several months earlier for another
California city. We then decided to submit the same plan that the Internal
Revenue Service had approved for the State of California. After waiting many
months, the plan was finally approved. They requested revisions in Article VIII
and Article XV of the plan; however, the amendments are minor and do not change
the over-all purpose or content of the plan.
There are no charges to the City or to the employee for administration of the
plan, and the absence of commissions and administrative costs will directly
increase the employee's per annum yield. At the present time, the maximum rate
allowed by law is 7.75 percent.
Upon Council approval, we can begin a 30-day enrollment period for eligible
employees.
ATTACHED: Resolution [ ~ Ordinance [ ] Agreement [ ] Plat [ ]
See EXHIBITS ~X] No. 1,2
Financial Statement:
This arrangement does not increase participating employee's compensation.
Commission-Board Recommendation:
N/A
Department Head Recommendation:
Recommends Approval.
City Manager Recommendation:
Concur
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