From
Lisa Norris, Human Resources Director
Title
Resolution authorizing the addition of a 401(a) Defined Contribution Plan for the City Manager and Deputy City Managers through ICMA-RC
Presenter
Lisa Norris, Human Resources Director
Recommended Action
Approve
Analysis
A 401(a) Plan through ICMA-RC allows a specific group or groups designated by the City, to save and invest money for retirement with tax benefits. Each group must participate in the mandatory contributions set by the plan which are pre-tax and reduces taxable income. The City may contribute as well on a fixed dollar or percentage basis which is defined in the plan established. No taxes are due, including on earnings, until the participant makes withdrawals. The maximum contribution limit (employee and employer combined) for this plan is $56,000 per year. This plan is being implemented for the City Manager and Deputy City Managers, since that group can agree on the mandatory contributions.
Financial Consideration
There is no cost to the city to implement this plan.
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, TO IMPLEMENT A 401(A) DEFINED CONTRIBUTION PLAN THROUGH ICMA-RC FOR A GROUP COMPRISED OF THE CITY MANAGER AND A GROUP COMPRISED OF THE DEPUTY CITY MANAGERS TO SAVE AND INVEST MONEY FOR RETIREMENT WITH TAX BENEFITS
Whereas, the City wishes to establish a 401(a) Defined Contribution Plan through ICMA-RC; and
Whereas, the plan allows for a group or groups to be defined under that plan; and
Whereas, the City wishes to establish a group for the City Manager and a group for the Deputy City Managers; and
Whereas, the City will set provisions for contributions under that plan, once established, that comply with plan provisions, limits and contributions agreeable to all in each group.
NOW THEREFORE, BE IT RESOLVED, by the City of GRAND PRAIRIE, Texas that:
Section 1. The City will implement a 401(a) Defined Contribution Plan through ICMA-RC for a group comprised of the City Manager and a group for the Deputy City Managers to allow additional ability to save and invest money for retirement with tax benefits in accordance with provisions allowed under ICMA-RC.
SECTION 2. The City will establish plan guidelines for each group compliant with the provisions under ICMA-RC for such 401(a) defined contribution plans effective a date following approval by the City Council.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, APRIL 2, 2019.