NUMB:
980689
VERS:
SUBSTITUTE 1
REF:
XXBY:
THE CHAIR
TITLE:
A substitute charter ordinance relating to a deferred compensation plan.
SECS:
5-50-3 am
5-50-4 am
ANLS:
- Analysis -
Prior to the enactment of the federal Small Business Job Protection Act, all accounts deferred, all property and rights purchased with such amounts deferred and all income attributable to such amounts, property or rights, had to remain the sole property and right of the employer subject only to the claims of the employer's general creditors. The use of a trust that protected plan assets from the claims of the employer's general creditors was prohibited. Under the Small Business Job Protection Act, all amounts deferred under an eligible s. 457 of the Internal Revenue Code plan maintained by a state or local government employer must be held in trust for the exclusive benefit of the employes. The trust requirement must be put in place in later than January 1, 1999. This charter ordinance amends enabling legislation by which the city established its deferred compensation plan to comply with the requirements of federal law. The charter ordinance clarifies that the anti-alienation provisions of s. 66.81, Wis. Stats., apply to plan assets.
BODY:
The Mayor and Common Council of the City of Milwaukee do ordain as follows:
Part 1. Section 5-50-3 and 4 of the charter is amended to read:
5-50. Deferred Compensation Plan.
3. INVESTMENT OF FUNDS. All amounts of compensation deferred under the plan, all property and rights purchased with such amounts, and all income attributable to such amounts, property or rights shall [[remain, until available to the participant or other beneficiary, solely the property and the rights of the city, without being restricted to the provision of the benefits under the plan, subject only to the claims of the city's general creditors. Except as otherwise required under s. 457 of the Internal Revenue Code, such compensation, property, rights and income shal...
Click here for full text