HomeMy WebLinkAboutStaff Report 03 03/05/2001 CITY OF PETALUMA, CALIFORNIA
AGENDA BILL
Agenda+Title:. • Meeting Date:.
• Addition of Ca1PERS 457 Deferred Compensation ;Program to :March,5, 2001,
Employee,Benefits Program
`Department: Director: Contact Person: Phone Number:
Finance William,J. Thomas William J. Thomas 778-4323
;Cost ofProposal: None Account.Number: N/A
Amount Budgeted: N/A Name of Fund:
Attachinents'to Agenda'Packet.Item:
Resolution Authorizing Adoption of Ca1PERS 457 Deferred.Compensation Plan
,Summary Statement: The California,Public Employees' Retirement,System (Ca1PERS) offers an IRS
457 Deferred Compensation Plan that can be available to the City's employees. This system is similar to
' the 457 Plan that the City currently offers to its employees that is administered through Hartford Life
Insurance. A resolution of the City Council is required to be-able:to implement this program.
•
•
Council Priority: THIS AGENDA ITEM IS CONSIDERED To'BErP.ART OF, OR NECESSARY To, ONE OR
MORE OF THE 1999-2000 PRIORITIES ESTABLISHED BY THE CITY COUNCIL.ON JANUARY 30, 1999
AND MARCH 18, 2000
Priority(s):
Recommended.City Council Action/Suggested Motion : Adopt"the Resolution
eviewed b Finance Director Revi . c... t.ornev' Approved by City Manager:
Date: le_ •: Date:
Today's ate: Revision # . I s 1a .•Revised: File Code:
February 12, 2001 # • sitagenaa(CALPERS 457
CITY OF PETALUMA, CALIFORNIA
March 54001
• AGENDA REPORT'
FOR
CALPERS 457 DEFERRED COMPENSATION PLAN
1. EXECUTIVE SUMMARY: The California.Public Employees'Retirement System
(CaIPERS) offers an IRS 457 Deferred Compensation Plan thattcan be available to the City's
employees. This-system is similar to the 457 Plan that the City currently offers to its employees
that is-administered through Hartford Life Insurance. A resolution of the City Council is required
to,be able to implement this program
2. BACKGROUND: As a side letter to the labor agreement between the City and the
Police, the City agreed to research,the potential for providing the 457 plan offered by Ca1PERS
to employees. Management and police representatives Met with CaIPERS and went over their
. plan.
The Plan does,offer altematives;to the employee that are notoffered'by-the existing'Hartford
Deferred Compensation Plan. Most notably is the self-managed account that allows the
employee greater freedom in managing their investments. The-Plan also allows for the employee
to invest in differentinvestment'opportunities`than those:offered by Hartford.
- ,• The inclusion of this plan can be.managed`by our existmg,payroll system with minor
modifications. To adopt this plan, it is necessary for the Plan,to be■adopted by the governing
body. The proposed resolution meets that°criferion.
3. ALTERNATIVES: Do not adopt the resolution.
4. FINANCIAL.IMPACTS: It is estimated that it;will take approximately 3 hours of the
Payroll Technician's time to set up this program within the;payroll:system. This is
approximately $100. Ongoing;costs for:monitoring,this;program will be approximately $10.00
per pay period. Additional costs,may be incurred if programming changes are required to the
existing payroll system.
5. CONCLUSION': The City agreed to research the possibility of.offering the CaIPERS
457 Plan to employees as part.;of the labor agreement-with Police. After meeting with
representatives of CaIPERS, it was determined that'offering this Plan would increase the
investment options available to:all employees. Additionally, including this Plan as an additional
457 Plan can be handled by existing payroll systerri.
6. OUTCOMES ORPERFORMANCE.MEASUREMENTS THAT WILL
INDENTIFY'.SUCCESS ORCOMPLETION: Finalize Plan with CaIPERS and make
necessary adjustments to the payroll system to implement this Plan.
• 7. RECOMMENDATION: Adopt the resolution
s:/agenda/CaiPERS457
t
Resolution No. N.C.S.
2 of the City of Petaluma, California
3
4 APPROVING.ADOPTION OF CALIFORNIA •UBLICEMPLOYEES' •
5 DEFERRED COMPENSATION:PLAN
6 .
7
8 WHEREAS;the Cit •ofTetaluma desires to establish an additional deferred compensation •
9 plan for the benefit of its employees; and •
10
11 WHEREAS;the,Board,of Administration:(the "Board' ),of the California Public;Employees'
12 Retirement System ("CalPERS9 has established the California Public Employees' Deferred
13 Compensation-Plan (the "Ca1PERS Plan") which may be adopted by a governmental employer the
14 employees of which are publicemployees; and
15
16 WHEREAS, the City of:Petaluma believes that the CaIPERS Plan and the inv estmentoptions
17 available thereunder will provide valuable benefits to-its-employees; and
18 •
19 WHEREAS; the Board has•appointed State Street Bank,and Trust Company:{-"State St'reetJ2),
20 to perform administrative-services under the•PERS plan and to act as the.Board'sagent in all matters
21 relating to thecadministration of the.CaIPERS'Plan;
22
23 NOW, THEREFORE, BE"IT RESOLVED,?that the City of Petaluma adopts the Ca1P:ERS
24 Plan for,the benefit of itsemployees and authorizes and directs:the City`Manager•to•executethe.
25 attached adoptiorragreementon behalf of the City.of Petaluma; and to provide Statte:
CALPERS 457 PROGRAM
�alrfo rnra•Pubf licEmployees'-Retirement System
Ca1PERS'457 Deferred Compensation Program •
• EMPLOYER ADOPTION AGREEMENT
•
By executing this Agreement, the employer identified,below(the"Employer")adopts the California Public Employees' Deferred Compensation
Plan (the"Plan') for the benefit of its_:erployees.The Employer;further.agrees!andrepresentsasfollows:
1. The.Employer is a political subdivision of the State of California eligible to adopt the Plan for the benefit of its employees.
2: The Employer has duly adopted a resolution.(copy attached)or taken such otheroffrcialaction as required for its lawful adoption and
implementation of this Plan and has authorized the undersigned to execute this:agreement.on{behalf of the Employer.
3: The Employer has been furnished with and reviewed a,copy of the Plan document which-explains the rights and obligations of the
Employer under the Plan,as well as the tights and options available to the Employer's employees under the Plan;the Employer agrees
to follow the terms of the Plan document,,which are incorporated herein by reference:
4. The,Employer:understands and agrees that all amounts deferred under the'Plan.are tole invested:in the Public Employees'Deferred
Compensation.Fund(the"Fund"),awinves'tment entity established to hold amounts deferred under the Plan,and that the Employer
shall have no right to`sell, redeem,or otherwise liquidate:its investments in.the Fund,.except as provided in Article 9 of the Plan.
5. The Employer understands that except for certain responsibilities delegated to;the:Employer under the.Plan,the administration of the.
Plan and.Fund is subject to the exclusive control of the Board of Administrauonjof the Public Employees'Retirement System(the
"Board").The Employer further understands that the:board has appointed Stare Street Bank and Trust Company and State Street Bank
and Trust Company of.California,N.A. (collectively,"Stare Street")to perform administrative services under the Plan and to act as the
Board's agent in all matters relating to the"administration of the Plan;the Employer agrees to deal,directly with State Street(or any
successor agent duly.appointed by the Board)`on all matters relating to its participation in the'Plan and to cooperate with State Street
• in the dissemination of Plan information to the Employer's employees.
6. The information set forth on the attached specifications page'is complete and accurate and may be relied upon by the Board and State
Street in the administration of the Plan on`behalf of the Employer and its employees,unless-and until the.Employer has provided State
Streetwith a written modification of such specifications.
7. The Employer.has been furnished with a copy of a manual that describes the;procedures to be followed by the Employer in the
administration of the Plan for its employees;YandjthezEmployer agrees to adhere to theprocedures set forth in that manual,and in any
revisions thereof or procedural notices that are hereafterfurnished;•to the Employer.'
8. The.Employer agrees to make the`Plan available to its employees and otherwise to abide by this"Agreement commencing on the
effective dare shown on the attached specifications pige this Agreement shall remain in full'force and effect unless terminated by the
Employer or the Board upon sixty(60)days prior written notice.
(Name of Employer)
BY
•
(Title)
Date:
Accepted by State Street Bank and Trust Company on behalf of the Board of Administrauo rof the Public Employees'Retirement System
By:
Date: Witness:.
caiPERS 015-7/98