March 15, 2004
April 6, 2004
Honorable Board of Supervisors
Thomas F. Casey III, County Counsel
Money Purchase Retirement Plan And Trust And An Agreement With ICMA Retirement Corporation To Administer A Money Purchase Retirement Plan Benefit
Adopt A Resolution Authorizing The Execution Of A Money Purchase Retirement Plan And Trust And An Agreement With ICMA Retirement Corporation To Administer A Money Purchase Retirement Plan Benefit
If these limits are not met, SamCERA can lose its qualified tax status. Consequently, SamCERA will not accept contributions on compensation earnable over the I.R.S. limit and will not pay benefits on compensation earnable over the I.R.S. limit. For those employees hired after June 30, 1996,who earn over that amount, "make up" contributions to compensate for benefits lost under SamCERA will be placed in a Money Purchase Retirement Plan.
The documents presented for your approval set up a Money Purchase Retirement Plan and Trust which will be administered by the ICMA Retirement Corporation. Each year the County will contribute to the Money Purchase Retirement Plan and Trust for certain employee participants. The employee participants are designated in the plan documents as well as the amount of the County's annual contribution.
The resolutions also authorizes the County Manager to manage the administration of the Plan as necessary.
Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.
The amount of the contributions to the Money Purchase Retirement Plan and Trust is the same amount that the County would have contributed to SamCERA for the benefits that cannot be paid under that plan. Fees are charged to the participant based on the fund selection.