HomeMy WebLinkAboutAgenda Statement 1984/04/10 Item 13 COUNCIL AGENDA STATEMENT
Item 13
Meeting Date 4/10/84
ITEM TITLE: Resolution /x/Jfo Approving Amended Deferred Compensation
Plan
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SUBMITTED BY: Acting Director of Finance (4/5ths Vote: Yes x No )
REVIEWED BY: City Manager
On February 18, 1975, the City Council approved a Deferred Compensation Plan
for the City of Chula Vista. The only change to the Plan has been to amend
Articles V and VI providing for "changes to enrollment" . The proposed amended
Deferred Compensation Plan updates our entire plan to conform to the latest
IRS regulations and is attached for your review and approval . The City
Attorney has reviewed the proposed plan.
RECOMMENDATION: That the City Council approve the Amended Deferred
Compensation Plan.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The amended Deferred Compensation Plan as recommended only updates our plan by
expanding definitions and revising certain sections. The most significant
changes are:
1. Expanded definition of includable compensation.
2. Expanded definition of normal retirement age.
3. Expanded Deferral of Compensation, Article IX C, describing the
"catch-up" provision.
4. Revised Distribution of Benefits, Article XIII, to conform with
regulations regarding commencement of disbursements. In addition,
Article XIII D describes the allowable period for disbursements to
beneficiaries.
5. Revised Mode of Distribution, Article XIV to include description of
minimum disbursement amounts.
6. Revised Emergency Withdrawal , Article XVI, to clarify eligibility
requirements.
7. New Plan to Plan Transfer, Article XVIII, to establish guidelines for
transfers between Plans.
Our proposed Deferred Compensation Plan will still be with Great Western
Savings & Loan Association. They provide enrollment services, maintain
records and reports on all Participants, prepare quarterly financial reports
and invest Plan funds in the savings account option, guaranteeing a minimum of
10% per annum, compounded monthly for an annual effective yield of 10.62% at
no charge to the City or to the employee.
FISCAL IMPACT: Not applicable.
WPC 0182G
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