33.
Commissioners Court Meeting
- Meeting Date:
- 12/08/2025
- Title:
- Nationwide Adoption Agreement – Roth Catch-Up
- Submitted for:
- Daniella Bernal
- Submitted By:
- Daniella Bernal
- Department:
- Risk Management
Subject:
Discussion and possible action to adopt the Pre-Approved Government Plan 457(b) “Deferred Compensation” amendment effective January 01, 2026, and exercise the county’s right to continue the 3rd party administration agreement between Webb County and Nationwide Financial Service, Inc. for the purpose of administering the 457(b) plan; and authorizing the Webb County Judge to sign all relevant documents and any other matters incident thereto.
Issue: Effective January 01, 2026, under a provision of the Secure 2.0 Act (Section 603) mandates that certain employees make their catch-up contributions to a Roth (after-tax) account instead of a traditional pre-tax account. The current 457(b) plan does not include a Roth feature, making the existing plan document noncompliant with this federal requirement.
Solution: Adopt the Pre-Approved Government Plan 457(b) Deferred Compensation Amendment, which includes the Roth deferral provision, and authorize continuation of the Nationwide Financial Services agreement, allowing participants to make both pre-tax and Roth contributions, including catch-up contributions, depending on their eligibility.
Result: Amending the plan ensures compliance with federal guidelines and enables eligible employees to continue to make catch-up contributions beginning January 1, 2026.
Issue: Effective January 01, 2026, under a provision of the Secure 2.0 Act (Section 603) mandates that certain employees make their catch-up contributions to a Roth (after-tax) account instead of a traditional pre-tax account. The current 457(b) plan does not include a Roth feature, making the existing plan document noncompliant with this federal requirement.
Solution: Adopt the Pre-Approved Government Plan 457(b) Deferred Compensation Amendment, which includes the Roth deferral provision, and authorize continuation of the Nationwide Financial Services agreement, allowing participants to make both pre-tax and Roth contributions, including catch-up contributions, depending on their eligibility.
Result: Amending the plan ensures compliance with federal guidelines and enables eligible employees to continue to make catch-up contributions beginning January 1, 2026.
Background:
N/A
Previous Court Action:
N/A
Fiscal Impact
- Budget Account Number:
- N/A
- Funding Source:
- N/A
- Balance:
- N/A
Financial Impact:
N/A