TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Javier Carcamo, Finance Director
SUBJECT:
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Addition of Roth Deferrals within the City's 457(b) Record-Keeping Platform and Adoption of SECURE Act 2.0 Amendments
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RECOMMENDATION
recommendation
Adopt Resolution 25-4888 entitled: A Resolution of the City Council of the City of Murrieta, to Adopt and Implement the Roth Deferrals within the Current 457(b) Plan and other SECURE Act 2.0 Amendments; and
Authorize the City Manager to execute all related documents.
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PRIOR ACTION/VOTE
On March 17, 1992, the City Council adopted Resolution No. 92-91, adopting the ICMA Deferred Compensation Plan and Trust Declaration (Vote: 5-0).
On November 21, 1995, the City Council adopted Resolution No. 95-393, authorizing participation in a defined contribution plan under section 401(a) of the Internal Revenue Code (Vote: 5-0).
On November 17, 2020, the City Council adopted Resolution 20-4331 authorizing an Agreement with Fiduciary Experts LLC for deferred compensation plan fiduciary services. (Vote 5-0)
On September 6, 2022, the City Council adopted Resolution No. 22-4614 entitled: A Resolution of the City Council of the City of Murrieta Authorizing Consolidation of the City's 457(b) and 401(a) Record-Keeping Platforms with Two Different Providers to a Single Record-Keeping Platform with Nationwide and Authorize the City Manager to Sign All Required Provider Agreements on behalf of the City (Vote: 5-0)
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
DISCUSSION
Under Sections 457(b) and 401(a) of the Internal Revenue Code (IRC), government entities may sponsor a deferred compensation plan for employees, while meeting fiduciary responsibilities under California law, to allow employees to defer income tax on retirement savings into future yea...
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