Number
141647
Version
ORIGINAL
Reference
Sponsor
ALD. KOVAC
Title
Resolution approving the Master Agreements for a Plan of Deferred Compensation relating to the City's Deferred Compensation Plan.
Analysis
Under s. 5-50 of the City Charter, the City has made available to its employees a deferred compensation plan which permits participants to save for retirement by deferring compensation from their wages. The plan is an eligible plan under s. 457(b) of the Internal Revenue Code. The plan is supervised by the Deferred Compensation Plan Board and administered under a Master Agreement, which is amended from time to time as required by federal tax law or as deemed advisable by the Common Council. The City Charter allows the Board to administer plans for multiple employers and, at this time, there are, in addition to the City of Milwaukee, multiple identical Master Agreements for the City of Milwaukee Employes' Retirement System, the Housing Authority of the City of Milwaukee, the Redevelopment Authority of the City of Milwaukee and the Wisconsin Center District.
This resolution approves an amendment to all the Master Agreements for the deferred compensation plans which relates to investment in group trusts, in order to document federal tax law compliance in connection with the tax-exempt status of such group trusts.
Body
Whereas, The City of Milwaukee established in s. 5-50 of the City Charter a deferred compensation plan which is an eligible deferred compensation plan under s. 457(b) of the Internal Revenue Code; and
Whereas, The plan is supervised by a board -- the Deferred Compensation Board -- and administered by a written Master Agreement for Plan of Deferred Compensation, which is amended from time to time as required by federal tax law or as deemed advisable by the Common Council; and
Whereas, The Charter allows the board to administer plans for multiple employers and currently there are, in addition to the City of Milwaukee, multiple identical Master Agreements for the City of Milwaukee Employes' Retirement System, the Housing Authority of the City of Milwaukee, the Redevelopment Authority of the City of Milwaukee and the Wisconsin Center District; and
Whereas, The Deferred Compensation Plan Board wishes to amend and restate the Master Agreements, all identical to that which is attached to this file, to document compliance with Internal Revenue Code provisions relating to investment in group trusts, and to provide documentation of the tax-exempt status of such group trusts; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that section 7(d) of the Master Agreement for a Plan of Deferred Compensation, and section 7(d) of those which are identical for the City of Milwaukee Employes' Retirement System, the Housing Authority of the City of Milwaukee, the Redevelopment Authority of the City of Milwaukee and the Wisconsin Center District, are amended and approved as follows:
(d) Board Discretion. Subject to subparagraph (e), the Board shall have complete discretion to approve, change or eliminate the specified insurance companies, financial institutions, or other carriers with whom a Participant's accounts shall be invested within each investment category, to limit or expand the investment categories, and to prescribe rules limiting the percentage or amount of said accounts that may be allocated among investment categories. >>With respect to investments in any group trust which is exempt from taxation under the Code, the terms and provisions of each such group trust are hereby adopted as part of this Master Agreement.<<
; and, be it
Further Resolved, That the Master Agreement for a Plan of Deferred Compensation, which is attached to this file, and those which are identical for the City of Milwaukee Employes' Retirement System, the Housing Authority of the City of Milwaukee, the Redevelopment Authority of the City of Milwaukee and the Wisconsin Center District, are approved; and, be it
Further Resolved, That the proper City officers are authorized to execute these agreements.
Requestor
Deferred Compensation
Drafter
City Attorney
Ellen Tangen
02/10/15
1073-2014-796:212445
LRB157172-1
Teodros W. Medhin:lp
2/10/2015