Number
240406
Version
ORIGINAL
Reference
210466, 231018
Sponsor
ALD. SPIKER
Title
Resolution authorizing amendments to the City of Milwaukee Deferred Compensation Plan Master Agreement to allow for emergency withdrawals, as permitted by SECURE 2.0.
Analysis
This resolution authorizes amendments to the Milwaukee Deferred Compensation Plan Master Agreement specific to allowing for emergency withdrawals, 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 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, Congress authorized two provisions of SECURE 2.0 allowing amendments to a Master Agreement for a Plan of Deferred Compensation that provide greater financial flexibility with respect to emergency withdrawals:
1) Withdrawals for certain emergency expenses, and
2) Penalty-free withdrawal from a retirement plan for an individual in a case of domestic abuse.
; and
Whereas, According to Forbes and CNBC, in 2022, nearly half of Americans could not cover an unexpected $400 expense, and 56% could not cover an unexpected $1,000 expense with savings; and
Whereas, Accordin...
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