RESOLUTION NO. _____________

BOARD OF SUPERVISORS, COUNTY OF SAN MATEO, STATE OF CALIFORNIA

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RESOLUTION AUTHORIZING THE DEFERRED COMPENSATION COMMITTEE TO AMEND THE SAN MATEO COUNTY DEFERRED COMPENSATION PLAN DOCUMENT TO ALLOW FOR A LOAN PROGRAM

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RESOLVED, by the Board of Supervisors of the County of San Mateo, State of California, that

WHEREAS, San Mateo County has established a Deferred Compensation Plan for employees to make pre-tax contributions into a tax deferred investment account to save money for retirement, and;

WHEREAS, a countywide Deferred Compensation Committee made up of nine labor and management departmental representatives is responsible for administering the Plan and reviewing fund performance on an annual basis, and;

WHEREAS, a deferred compensation loan program would allow employees easier access to deferred compensation funds who are facing a financial hardship, less rigid regulations than the existing emergency hardship withdrawal process, and could make employees more likely to contribute funds to a retirement account, and;

WHEREAS, the Deferred Compensation Committee considered the advantages and disadvantages of loans and is recommending that the Board of Supervisors authorize the Committee to amend the Plan Document to allow for a loan program with substantially the same terms as listed below:

• Loan type: no restriction on use of loan; loan must be repaid over a period of 1-5 years (1-20 years for the purchase of a principal residence); no more than two outstanding loans at one time

• Maximum loan amount: $50,000 or 50% of the participant’s account balance, whichever is less. Minimum loan amount: $1,000.

• Interest rate: Prime + 1%

• Fees: Annual loan maintenance fee of $50; no setup fee

• Repayment: Automated Clearing House (ACH) from a participant’s checking or savings account.

NOW, THEREFORE, IT IS HEREBY DETERMINED AND ORDERED that the Board of Supervisors authorizes the Deferred Compensation Committee to amend the San Mateo County Deferred Compensation Plan Document to allow for a loan program.

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