Agenda - 11-16-2010 - 4h - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 16, 2010 Action Agenda Item No. q- - h SUBJECT: Second Reading: Amendment to the Orange County Personnel Ordinance Article IV, Section 9.4 Supplemental Retirement [401(k)] Employer's Contribution to Include 457 Plans as an Additional Contribution Option DEPARTMENT: Human Resources PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Attachment 1. Amendment to the Orange County Personnel Ordinance: Article IV, Section 9.4 Supplemental Retirement [401(k) Plan] Employer's Contribution INFORMATION CONTACT: Michael McGinnis, Human Resources Director, 245-2552 Annette Moore, Staff Attorney, 245-2317 Diane Shepherd, Benefits Manager, 245-2558 PURPOSE: To approve on second reading an amendment to the Orange County Personnel Ordinance Article IV, Section 9.4 Supplemental Retirement [401(k)] Employer's Contribution to allow the Orange County employer contribution to go to either an authorized 401(k) Supplemental Retirement Plan or 457 Deferred Compensation Plan. BACKGROUND: The current Personnel Ordinance, Article IV, Section 9.4.1 provides that effective January 1, 2011 Orange County will contribute $27.50 per pay period ("employer contribution") to an eligible employee's supplemental retirement [401 (k) Plan] account. This 401(k) Plan is currently administered by Prudential as part of the North Carolina Supplemental Retirement Plan. On December 7, 2009, the Board adopted a "Resolution by the Orange County Board of Commissioners Authorizing County Participation in a 457 Deferred Compensation Plan" with the ICMA Retirement Corporation ("ICMA-RC") Deferred Compensation Plan and Trust for both the County Manager and Orange County employees. Employees have requested that they be allowed to allocate the employer's contribution to their 457 Plans instead of the 401(k) Plan. This amendment to the Personnel Ordinance would allow employees the opportunity to elect during an open enrollment period to direct the employer's contribution to either an authorized 401(k) or 457 supplemental retirement savings plan. The Board approved this amendment on first reading at its November 4, 2010 regular meeting. Since approval was not by the full Board, approval on second reading is required as outlined in the North Carolina General Statutes. FINANCIAL IMPACT: There is no financial impact because there is no change in the amount contributed for each employee.