AgdaPkt 2002-12-09 - Laserfiche WebLink

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�. � �2 _ their ocus on implementing customized plans that meet the unique needs of each public agency. The PARS Trust is a multipie employer trust arrangement established and maintained to provide economies of scale and efficiency of administration to public agencies that adopt it to hold 401(a) plan assets for the benefit of their employees. Member agencies and employees of inember agencies assets will be accounted for separately from the assets of ' other agencies participating in the trust. Summary of Plan Document The proposed plan document will enable department heads to contribute between 1% and 15% of their gross eamings, in 1% increments, to this plan. Altematively, department heads may contribute a fixed amount per pay period. These fixed amounts range from $250 to $1,500 in $250 increments. In addition to either of the foregoing options, the department heads will also be able to contribution 25%. 50%, 75%� or 100% of their "in-lieu hours" that is paid in January of each year. The City will contribute the 2% employer contribution th:- ° was pre - �,;. ;ay approved by Council that is presently being contributed to each deNartment h�� section "457" deferred compensation plan. The contributions will be made after the close of each bi-weekly pay period save for the annual in-lieu hours contribution. The investment of the contributions will be directed by the employees from a range of investment options selected by Phase II Systems. The . investments will be held in a trust administered by the Union Bank of Califomia. Contributions will be limited by IRS regulations to $40,000 per year per employee and may increase depending upon the indexing formula that governs this limit. Plan distributions will be govemed by the applicable federal laws and regulations. Fiscal Impact The total costs to establish this plan will be $4,000 ($1,500 for an IRS Letter of Determination and $2,500 for Phase II Systems to prepare the plan document and handle all other arrangements needed to implement this plan.) Phase I I Systems will charge the City $200 per month to administer this plan. Inasmuch as the fees to be paid to Phase II Systems are less than $10,000, the City Manager may execute the contract with Phase II Syst�ms. Accordingly, this contract is not being presented to the City Council for approval. All other fees (investment management fees and trustee fees) will be paid by the plan participants. Alternatives The Council could elect to forego providing this benefit to the eligible employees or direct staff to change the plan document. 2