AI- 23320
10.C.
CC REGULAR
- Meeting Date:
- 10/12/2010
- Submitted For:
- Valde Guerra
- Submitted By:
- Dale Kennan, BUDGET & MANAGEMENT
- Department:
- BUDGET & MANAGEMENT
Information
CAPTION
Discussion of the county's options and approval for the Hidalgo County Executive Officer to fill out and sign all forms related to the discontinuation of services from American United Life (a One-America Financial Partner) to discontinue the "County of Hidalgo Office of Employment & Training" retirement plan.
BACKGROUND
As per the IRS the tax implications for the county are avoidable, as related to the closure of the “County of Hidalgo Office of Employment & Training” retirement plan, if one of the following options is utilized:
Option1 Turn assets over to the Pension Benefit Guaranty Corporation (PBGC)
Option 2 Turn assets over to the Texas Unclaimed Property Fund
Option 3 Open up an IRA for the funds to roll into
The closure of the plan should cause the county to have “zero assets attributable to the county” to avoid any tax implications or responsibilities.
Option1 Turn assets over to the Pension Benefit Guaranty Corporation (PBGC)
Option 2 Turn assets over to the Texas Unclaimed Property Fund
Option 3 Open up an IRA for the funds to roll into
The closure of the plan should cause the county to have “zero assets attributable to the county” to avoid any tax implications or responsibilities.
Fiscal Impact
- FISCAL YEAR:
- ACCT. #:
- FUNDS AVAILABLE Y/N?:
- MATCHING FUNDS Y/N?:
BUDGETARY IMPACT:
Negligible tax consequences if the options as discussed on the background are utilized.Possible cost savings from discontinuation of American United Life (AUL) services.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Budget and Management | Sylvia Solis | 10/06/2010 01:17 PM |
| Auditor's Office | lfong | 10/07/2010 02:01 PM |
| Purchasing / Internal | msalazar | 10/07/2010 02:30 PM |
- Form Started By:
- dkennan
- Started On:
- 10/04/2010 02:40 PM
- Final Approval Date:
- 10/07/2010