HomeMy WebLinkAboutResolution 2020 - 16 To Adopt Employee 457b Retirement Plan/
Resolution to Adopt the State Plan for Deferred Compensation
Resolution 2020 - 16
WHEREAS, the State of Idaho has enacted Idaho Code Section 59-513 which permits the State of Idaho and any county, city or political subdivision of the state, working through it’s governing
body, to contract with an employee to defer income to a 457 Deferred compensation plan, and
WHEREAS, the State of Idaho, by the State board of examiners has established and maintains the Deferred Compensation Plan ("Plan") for participation by state employees, and
WHEREAS, the City of Rexburg, Idaho, (hereinafter referred to as the "Participating Employer") desires to adopt the State Plan for participation by its employees;
WHEREAS, the Participating Employer has also determined that it wishes to encourage employee's savings for retirement by offering salary reduction contributions;
WHEREAS, the Participating Employer has reviewed the Plan;
By adopting the Plan, the City of Rexburg, adopts the investments and services selected by the State of Idaho Board of Examiners.
NOW THEREFORE, the Mayor and the Council of the City of Rexburg, effective September 2, 2020, hereby resolves:
Section 1. The Employer shall abide by the terms of the Plan, including amendments to the Plan made by the State of Idaho Board of Examiners, all investment, administrative, and other
service agreements of the Plan, and all applicable provisions of the Internal Revenue Code and other applicable law.
Section 2. Plan will be made available 10/1/2020 to regular full time employees only, and there will not be a 6-month waiting period for new hires.
Section 3. The Employer will contribute $100.00 up front (one time contribution per full-time employee) upon enrolling in the 457 Deferred Compensation Plan to the Employee’s account
if their contribution is three percent (3%) or greater and they commit to a 12 month minimum period of payroll deducted contributions. The employer will not provide any additional
contribution or matches.
Section 4. The Employer may terminate its participation in the Plan.
PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR THIS 2ND DAY OF SEPTEMBER, 2020.
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Jerry L. Merrill, Mayor
ATTEST:
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Deborah Lovejoy, City Clerk