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COUNCIL MEMORANDUM <br /> #2011-02 <br /> DATE: May 16, 2011 <br /> TO: Honorable Mayor Michael T. McElroy and City Council <br /> FROM: Ryan P. McCrady, City Manager <br /> Jerry Bauer, Assistant City Manager <br /> SUBJECT: Nationwide Deferred Compensation Program <br /> SUMMARY RECOMMENDATION: Staff recommends that City Council adopt the attached <br /> resolution, approving the restated Section 457 Deferred Compensation Plan with Nationwide <br /> Retirement Solutions, Inc., for the members of International Association of Fire Fighters (IAFF) <br /> Local 505, and authorizing the Mayor and City Clerk to sign the document. <br /> BACKGROUND: The City agreed, as an item of bargaining in the 2007 round of contract <br /> negotiations, to permit members of the Fire union, IAFF Local 505, to participate in the <br /> Nationwide Deferred Compensation program. This program, sponsored by the IAFF, operates <br /> under the rules of Section 457 of the U. S. Internal Revenue Code, and provides for tax deferred <br /> employee salary deductions and earnings on contributions. Participation in the program is <br /> voluntary, there are no employer contributions, and costs of the program are born exclusively by <br /> the participants. The Fire union requested this specific provider. The City also currently <br /> maintains a Section 457 Plan for all employees, including Fire Fighters, through the ICMA <br /> Retirement Corporation (ICMA-RC). The purpose of the restated document is to incorporate <br /> recent legislative and regulatory changes into the Nationwide plan. Government regulations <br /> require that the plan document incorporate these provisions by December 31, 2011, for the plan <br /> year beginning January 1, 2011. Attached is a summary of the changes found in the new <br /> document. <br /> POTENTIAL OBJECTIONS: There are no known objectors. <br /> INPUT FROM OTHER SOURCES: Documents for the plan were provided by Nationwide <br /> Retirement Solutions, Inc. <br /> STAFF REFERENCE: If you have questions about this item, please contact Jerry Bauer at <br /> 424-2801 or 1bauerCa�decaturil.gov. <br /> BUDGET/TIME IMPLICATIONS: There will be no impact on the budget for adopting this new <br /> deferred compensation program plan document. <br /> attachments <br />