HomeMy WebLinkAboutAgenda - 11-04-2010 - 4iORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: November 4, 2010
Action Agenda ,
Item No. 4 - i
SUBJECT: Amendment to the Orange County Personnel Ordinance Article IV, Section 9.4
Supplemental Retirement [401(k)] Employer's Contribution to Include 457 Plans
as an Additional Contribution Option
DEPARTMENT: Human Resources
PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
Attachment 1. Amendment to the
Orange County
Personnel Ordinance:
Article IV, Section 9.4
Supplemental Retirement
[401(k) Plan] Employer's
Contribution
INFORMATION CONTACT:
Michael McGinnis, Human Resources
Director, 245-2552
Annette Moore, Staff Attorney, 245-2317
Diane Shepherd, Benefits Manager, 245-2558
PURPOSE: To consider and approve an amendment to the Orange County Personnel
Ordinance Article IV, Section 9.4 Supplemental Retirement [401(k)] Employer's Contribution to
allow the Orange County employer contribution to go to either an authorized 401(k)
Supplemental Retirement Plan or 457 Deferred Compensation Plan.
BACKGROUND: The current Personnel Ordinance, Article IV, Section 9.4.1 provides that
effective January 1, 2011 Orange County will contribute $27.50 per pay period ("employer
contribution") to an eligible employee's supplemental retirement [401(k) Plan] account. This
401(k) Plan is currently administered by Prudential as part of the North Carolina Supplemental
Retirement Plan.
On December 7, 2009, the Board adopted a "Resolution by the Orange County Board of
Commissioners Authorizing County Participation in a 457 Deferred Compensation Plan" with the
ICMA Retirement Corporation ("ICMA-RC") Deferred Compensation Plan and Trust for both the
County Manager and Orange County employees. Employees have requested that they be
allowed to allocate the employer's contribution to their 457 Plans instead of the 401(k) Plan.
This amendment to the Personnel Ordinance would allow employees the opportunity to elect
during an open enrollment period to direct the employer's contribution to either an authorized
401(k) or 457 supplemental retirement savings plan.
FINANCIAL IMPACT: There is no financial impact because there is no change in the amount
contributed for each employee.
RECOMMENDATION(S): The Manager recommends the Board amend the Orange County
Personnel Ordinance Article IV, Section 9.4 to allow eligible employees to elect to direct the
County's contribution to an authorized supplemental retirement savings plan to either a 401(k)
or 457 Plan effective January 1, 2011.
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Ada e hm -e n-t- ~-
Article IY, Section 9.4 Supplemental Retirement f4~{~-T~ SavinQS Plan
Employer's Contribution
9.4 Supplemental Retirement ~^^' " Savin sg Plan Employer Contribution
9.4.1 Effective January 1, 2011 Orange County makes a Supplemental Retirement
1d°'-~''' D'~~] contribution to an authorized 401(kl or 457 Plan of $27.50 per pay
period for each eligible employee for the remainder of the fiscal year, and thereafter
as Board of County Commissioners provides in its annual budget.
9.4.2 For this purpose, eligible employees are County employees both full time and part
time (regularly scheduled at least 20 hours each workweek) appointed to permanent
positions who are members of the N. C. Local Government Employees' Retirement
System and who are not sworn law enforcement officers. See Section 9.5 for
additional retirement benefits for Law Enforcement Officers.
9.4.3 To participate, an eligible employee completes the appropriate enrollment form.
9.4.4 Employees are eli ig ble for E coverage is effective the date of appointment to
the permanent position and enrollment in the retirement system. Contributions are
suspended for any pay period in which the employee is in leave without pay status
for that pay period. At termination, the County's supplemental retirement 4A~{~
contribution ends.