Title
Approving an agreement with Williamson County, City of Round Rock and the City of Georgetown to create a Central Texas Deferred Compensation Plan to replace the current voluntary participation Deferred Compensation Plan. This new plan is a voluntary participation plan with no fiscal impact to the City. All costs related to set up and administration will be borne by the employee participants in the plan.
Summary
The City of Pflugerville currently offers participation by its employees in the ICMA-RC 457 deferred compensation plan. This participation is voluntary and involves contributions from the employees only. There is no cost to the City of Pflugerville for the employees' participation in this plan. The City does not match any of the employee contributions. At this time, twenty-four employees are participating in this deferred compensation plan.
This change is proposed to provide a plan that has lower service fees and higher return than the current plan. In addition, the City of Pflugerville will participate as member(s) of the governing board for the plan, allowing for local control and governance. This plan will transfer the current employee accounts from ICMA-RC into the new plan. There is no budget effect. There will be no City funds used in this process. It is anticipated that more City employees may become participants due to the lower fees and higher return.
The City Attorney has reviewed the agreement.
Deadline for City Council Action
Action is requested on November 9, 2010.
Fiscal Impact
There is no fiscal impact associated with the item. The City of Pflugerville's portion of all costs related to the set up and ongoing administrative fees for the new plan will be paid proportionately by the City of Pflugerville employees. The City's participation is contingent upon the approval by the governing bodies of the above-listed governmental entities.
Staff Recommendation
Approve the item.
Drafter
Susan Word, Human Resources ...
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