11.A.
City Council Meeting - FINAL
- Meeting Date:
- 05/03/2022
- From:
- Brandi Suda, Interim Human Resources Director
Information
TITLE:
Consideration and Adoption of Resolution No. 2022-19: A resolution of the Flagstaff City Council, adopting the Arizona State Retirement System Supplementary Salary Deferral Plan
STAFF RECOMMENDED ACTION:
1) Read Resolution No. 2022-19 by title only
2) City Clerk reads Resolution No. 2022-19 by title only (if approved above)
3) Adopt Resolution No.2022-19
2) City Clerk reads Resolution No. 2022-19 by title only (if approved above)
3) Adopt Resolution No.2022-19
Executive Summary:
Senate bill 1348 was passed in May 2021 and requires the City to offer an additional 457(b) deferred compensation plan through Arizona State Retirement System (ASRS) effective July 1, 2022. This bill permits an employee of an ASRS employer, on or after July 1, 2022, to elect to participate in a supplemental employee deferral plan if the employee meets the ASRS prescribed eligibility requirements and requires a supplemental employee deferral plan participant's employer to make salary reductions from the participant's compensation at no cost to the employee, ASRS or any vendor retained by ASRS.
City Council is required to adopt this supplemental employee deferred plan via resolution per State Statutes. Arizona State Revised Statutes 9-500 requires city and towns to adopt all deferred compensation plans for their employees via resolution or ordinance.
City Council is required to adopt this supplemental employee deferred plan via resolution per State Statutes. Arizona State Revised Statutes 9-500 requires city and towns to adopt all deferred compensation plans for their employees via resolution or ordinance.
Financial Impact:
None.
Policy Impact:
None.
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives
High Performing Governance
- Become an employer of choice and provide employees with the necessary tools, training, and support
Has There Been Previous Council Decision on This:
In January 2006, City Council adopted Resolution 2006-05 confirming adoption of the City's 457 Deferred Compensation Plan with our current providers, VOYA and ICMA.
Options and Alternatives:
- Approved resolution as recommended
- Do not adopt the resolution
Background and History:
In 1983, the City adopted a 457 Deferred Compensation Plan pursuant to Section 457 of the Internal Revenue Code. The purpose of these plans is to attract and retain employees by permitting them to enter into agreements with the City which will provide for the payment of deferred compensation on retirement or separation from service as well as death benefits in the event of death before or after separation.
The City currently offers 457 deferred compensation plan with VOYA and ICMA. This will add a third option with Nationwide through ASRS for those employees that meet the eligibility requirements.
The City currently offers 457 deferred compensation plan with VOYA and ICMA. This will add a third option with Nationwide through ASRS for those employees that meet the eligibility requirements.