Number
250942
Version
ORIGINAL
Reference
210466, 231018, 240406
Sponsor
ALD. SPIKER
Title
Resolution relating to amendments to the City of Milwaukee Deferred Compensation Plan Master Agreement to allow for special disaster-related distributions and loans as permitted by SECURE 2.0.
Analysis
This resolution authorizes amendments to the Milwaukee Deferred Compensation Plan Master Agreement to allow participants access to special disaster-related distributions and loans, consistent with Section 331 of 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 pursuant to 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, On July 27, 2021, the Common Council adopted Resolution File Number 210466, authorizing an amendment to the City of Milwaukee Deferred Compensation Plan Master Agreement to permit distributions from participant rollover accounts; and
Whereas, On November 21, 2023, the Common Council adopted Resolution File Number 231018, 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; and
Whereas, On July 30, 2024, the Common Council adopted Resolution File Number 240406, authorizing an amendment to the City of Milwaukee Deferred Compensation Plan Master Agreement to allow for emergency withdrawals, as permitted by SECURE 2.0; and
Whereas, Section 331 of SECURE 2.0 authorizes special rules for the use of retirement funds in connection with qualified federally declared disasters, including:
1. Penalty-free disaster distributions up to statutory limits, with repayment rights.
2. Expanded loan limits and extended repayment periods for disaster-affected participants.
3. The ability for plans to adopt such provisions on a permanent basis for federally declared disasters.
; and
Whereas, The City of Milwaukee and its employees have recently been impacted by a federally-declared disaster due to severe storms, straight-line winds, flooding and mudslides from August 9 through August 12, 2025, which underscores the importance of participant access to flexible financial relief options during emergencies; and
Whereas, Adopting the special disaster distribution and loan provisions of Section 331 of SECURE 2.0 will provide participants with greater financial security and flexibility in times of federally-declared disasters; and
Whereas, Adding this feature will result in no additional administrative costs to the Plan; 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 allow for disaster-related distributions and loans as permitted by Section 331 of SECURE 2.0; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the amendments to the Master Agreement to allow for special disaster-related distributions and loans, as permitted by Section 331 of SECURE 2.0, in the form attached to this file, are 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
Kathleen Brengosz
9/22/2025
LRB 181049-1