Title
Approving a resolution amending and restating the City of Pflugerville's deferred compensation plan in the form of the ICMA Retirement Corporation 457 Deferred Compensation Plan & Trust, to include the associated Roth amendment.
Summary
Over ten years ago, city employees asked for additional options to save for retirement. The City entered into an agreement with the ICMA Retirement Corporation to offer employees the option of payroll deductions to a 457 retirement plan. A 457 plan is comparable to a 401(K) in private industry.
The City does not contribute to the 457 Deferred Compensation Plan.
The City's Human Resources Department has received requests from employees to offer a Roth provision within our existing plan. It will provide another method of retirement savings/planning for our employees. By approving this resolution, the Roth option will be available.
Deadline for City Council Action
There is no deadline for action.
Fiscal Impact
There is no fiscal impact to the city.
Staff Recommendation
Staff recommends approval of this amendment adding the Roth option to the current ICMA Retirement Corporation 457 Deferred Compensation Plan.
Drafter
Lauri Gillam
Assistant City Manager