Number
231018
Version
ORIGINAL
Reference
210466
Sponsor
THE CHAIR
Title
Resolution authorizing an amendment to the City of Milwaukee Deferred Compensation Plan Master Agreement to eliminate the “first day of the month” rule, as permitted by SECURE 2.0.
Analysis
This resolution authorizes an amendment to the Milwaukee Deferred Compensation Plan Master Agreement specific to eliminating the “first day of the month” rule, as now permitted by SECURE 2.0.
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 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 the following multiple employers: 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 SECURE 2.0 Act of 2022 expands the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, and was signed into law on December 29, 2022, as part of the Consolidated Appropriations Act of 2023; and
Whereas, SECURE 2.0, as a law designed to improve retirement savings options, includes a number of provisions related to retirement plans that expand participant coverage, help participants preserve income, and simplify plan rules and administrative procedures; and
Whereas, Under current law, participants in a governmental 457(b) plan must request changes to their deferral rate prior to the beginning of the month in which the deferral will be made; and
Whereas, SECURE 2.0 permits eliminating the “first day of the month” requirement for 457(b) plans, and, instead, permits elections to be made at any time prior to the date that the compensation being deferred is administratively available; and
Whereas, The board of the deferred compensation plan wishes to amend and restate the Master Agreement, which is attached to this file, in order to eliminate the “first day of the month” rule; now, therefore, be it
Resolved, by the Common Council of the City of Milwaukee, that the amendment to the Master Agreement, in the form attached to this file, is hereby approved, subject to any such revisions which may be necessary as approved by the City Attorney to comply with applicable law; and, be it
Further Resolved, That the proper City officers are authorized to execute the Master Agreement.
Requester
Deferred Compensation
Drafter
LRB179487-1
Tea B. Norfolk
10/31/23