sr-022382-6bPE:SEM:p
Council MeeEzing: 2/23/82
T0: ?Mayor and City Council
Santa Monica, California
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~~~ ~ 3 1992`
FROM: City Staff
SUBJECT: Amendment to Deferred Compensation Plan
Introduction
This report requests adoption of a Resolution amending the City's
Deferred Compensation Plan.
Background
In 1974 the City Council adopted Resolution Number 4576 (CCS) estab-
lishing the terms of the Deferred Compensation Plan currently offered
as a benefit of employment. Ede have found Section V of the Plan (copy
attached) to be unresponsive to changes in deferred compensation bene-
fits that result from collective bargaining agreements and transfers
of bargaining units.
After consultation with the Plan administrators, an amendment to
Section V of the Plan has been prepared. The amendment provides:
1) A sixty day period after initial employment, execution
of anew MOU or transfer of bargaining unit during which
an employee may enroll in the plan.
2) A sixty day period after execution of anew MOU or trans-
fer of bargaining unit during which an employee may mod-
ify his or her deferral amount.
3) A re-enrollment provision that is consistant with the
above changes.
4) Explicit citation of the IRS requirement that provides
that agreements must be entered into before the beginning
of the month in which deferral is made.
The Plan, including the amended Section V is attached to the Resolution
that accompanies this report.
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~E6 2 3 1982.
Recommendation
It is recommended that Council adopt the attached Resolution amending
Section V of the City's Deferred Compensation Plan.
Prepared By: Susan E. McCarthy c%~,~/