HomeMy WebLinkAboutRESOLUTION 1994-04A RESOLUTION
ADOPTING THE
COMPENSATION
Suggested by:
Finance Department.
City of Kenai
RBBOLUTION NO. 94-4
OFT HE COUNCIL OF THE CITY OF KENAI, ALASKA
NATIONAL ASSOCIATION OF COUNTIES DEFERRED,
PROGRAM.
WHEREAS, the City of Kenai has considered the establishment ,. "''
of a Deferred Compensation Plan to be made available'to ali
eligible City employees, pursuant to Section 457 of the ' .
Internal Revenue Code permitting such Plans~ and
WHEREAS, certain tax benefits could accrue to employees
participating in said Deferred Compensation Plans~ and .~.
WHEREAS, such benefits will act as incentives to City .. i
employees to voluntarily set aside and invest portions of
their current income to meet their future financial ~i
requirements and supplement their City retirement and Social :..
Security (if applicable)~ and ·
WHEREAS, by adoption of the NACo Program, all regulatory,
operational, administrative and fiduciary responsibilities-
are hereby assumed by NACo on behalf of Cit¥~ and
WHEREAS, the National Association of Counties has
established a Master Deferred Compensation Program.that has..
been endorsed by the Alaska Municipal League~ and
WHEREAS, NACo, as Plan Administrator, agrees to hold
harmless and indemnify the City, its appointed and elected.
officers and 9articipating employees from any loss resulting
from NACo or its Agent's failure to perform its duties and
services pursuant to the NACo Program~ ~'
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OFT HE CITY OF'
KENAI, ALASKA, THAT~ '
The City hereby adopts the National Association of Counties
Deferred Compensation Program and hereby establishes the
City of Kenai Deferred Compensation Plan for the volUnt&ry.
participation of all eligible City employees.
The Finance Director is hereby authorized to execute for th·.
City, individual participation agreements with each said
employee requestinu same, and to act as the "AdministratorS'
of the Plan representing the City, and to execute such''
agreements and contracts as are necessary to ~mplement the
program. It is implicitly understood that, other than the
ReSolute. on No.
Page ~o
94 "4
~n0i'dental expenses of oolle ' ' ' '.
employees, de£e ' ct;lng and d~sb' '.'
· rrals and o ~ urs~n o£
there ~8 to ther minor a . g
. ... be no cost to ~h. ~,,.__ dmtn/.strat~:ve matters
PAssED BY ~ ~A--- --" .~'~Y ~:or the. Program..
day'" ' ----- ~ouNCZL OF THE CZ '
o£ February, 1994. T¥ OF K. ENAZ, ALASKA., thts 2nd.
ATTEST:
Pproved by Finance..
1/20/94,t
k!
CITY OF KENAI
210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794
TELEPHONE 907-283-7~S
FAX 907.283-3014
!t~)2
TO: Thomas J. Manninen, City Manager
FROM: Charles A. Brown,
DATE: January 28, 1994
Finance Director
SUBJECT: Deferred Compensation, 457 Plan
In October, 1993 you asked me to review a new deferred ...
compensation plan that is endorsed by the Alaska MuJlicipal
League.
As
with
the
current ICY~plan, al~ contributione to I
the plan are made voluntarily by employees, the City ~.
contributes nothing.
Key provisions of this new plan include=
1)
The plan sponsor is National Association of Counties
(NACo). The plan a~ministrator is Public Employees
Benefit Services Corporation (PEBSCo). This
administrator has substantial experience in deferred
compensation plans.
2)
Variable investment options include a substantial list
of mutual funds that can be tracked in financial
publications.
3)
The fixed fund pays an attractive interest rate, has no
administrative charges or asset fees, and offers a 4%
bonus if money is transferred from another deferred
compensation plan. To receive the full 4%, money must
remain in the fixed fund for two years.
4)
A maximum of 20% per account per year can be
transferred from the fixed fund to variable funds.
5) PEBSCo handles all administration and accounting.
It appears to me that the NACo plan maybe advantageous to
City employees. I recommend that the City participate.
A resolution adopting the NACo plan is antached to this memo.
If you want to recommend to the Council that the City
participate in this plan, I suggest that you simply give the
City Clerk the resolution and this memo for inclusion in the
February 2, 1994 Council packet.