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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: November 4, 2010 <br />Action Agenda <br />Item No. 4- —'1 <br />SUBJECT: Amendment to the Orange County Personnel Ordinance Article IV, Section 9.4 <br />Supplemental Retirement [401(k)] Employer's Contribution to Include 457 Plans <br />as an Additional Contribution Option <br />DEPARTMENT: Human Resources <br />ATTACHMENT(S): <br />Attachment 1. Amendment to the <br />Orange County <br />Personnel Ordinance: <br />Article IV, Section 9.4. <br />Supplemental Retirement <br />[401(k) Plan] Employer's <br />Contribution <br />PUBLIC HEARING: (Y /N) No <br />INFORMATION CONTACT: <br />Michael McGinnis, Human Resources <br />Director, 245 -2552 <br />Annette Moore, Staff Attorney, 245 -2317 <br />Diane Shepherd, Benefits Manager, 245 -2558 <br />PURPOSE: To consider and approve an amendment to the Orange County Personnel <br />Ordinance Article IV, Section 9.4 Supplemental Retirement [401(k)] Employer's Contribution to <br />allow the Orange County employer contribution to go to either an authorized 401(k) <br />Supplemental Retirement Plan or 457 Deferred Compensation Plan. <br />BACKGROUND: The current Personnel Ordinance, Article IV, Section 9.4.1 provides that <br />effective January 1, 2011 Orange County will contribute $27.50 per pay period ( "employer <br />contribution ") to an eligible employee's supplemental retirement [401(k) Plan] account. This <br />401(k) Plan is currently administered by Prudential as part of the North Carolina Supplemental <br />Retirement Plan. <br />On December 7, 2009, the Board adopted a "Resolution by the Orange County Board of <br />Commissioners Authorizing County Participation in a 457 Deferred Compensation Plan" with the <br />ICMA Retirement Corporation ( "ICMA -RC ") Deferred Compensation Plan and Trust for both the <br />County Manager and Orange County employees. Employees have requested that they be <br />allowed to allocate the employer's contribution to their 457 Plans instead of the 401(k) Plan. <br />This amendment to the Personnel Ordinance would allow employees the opportunity to elect <br />during an open enrollment period to direct the employer's contribution to either an authorized <br />401(k) or 457 supplemental retirement savings plan. <br />FINANCIAL IMPACT: There is no financial impact because there is no change in the amount <br />contributed for each employee. <br />RECOMMENDATION(S): The Manager recommends the Board amend the Orange County <br />Personnel Ordinance Article IV, Section 9.4 to allow eligible employees to elect to direct the <br />County's contribution to an authorized supplemental retirement savings plan to either a 401(k) <br />or 457 Plan effective January 1, 2011. <br />