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HomeMy WebLinkAbout20231764.tiffRESOLUTION RE: APPROVE AMENDMENT NOS. 1 AND 2 FOR CLARIFICATION OF ELIGIBILITY DESIGNATIONS FOR 457 DEFERRED COMPENSATION PLAN AND AUTHORIZE CHAIR PRO-TEM TO SIGN WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board has been presented with Amendments 1 and 2 for Clarification of Eligibility Designations for the 457 Deferred Compensation Plan for the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Department of Human Resources, with further terms and conditions being as stated in said amendments, and WHEREAS, after review, the Board deems it advisable to approve said amendments, copies of which are attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that Amendment Nos. 1 and 2 for Clarification of Eligibility Designations for the 457 Deferred Compensation Plan for the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Department of Human Resources, be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chair Pro-Tem be, and hereby is, authorized to sign said amendments. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 21st day of June, A.D., 2023. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST: W....it444) Weld County Clerk to the Board BY. • U&J Q/-1/(3 % J - Deputy Clerk to the Board APP: =VED A ter% ORM: ounty orney Date of signature: t‘i Z 8 ) ZO Z Perr, . Buc !"Pro-Tem CC: PE(SDC/5'sMO, F .(RR/cP) 07/20/23 2023-1764 PE0030 Cbr?i'QCkn}lnq�l BOARD OF COUNTY COMMISSIONERS PASS -AROUND REVIEW PASS -AROUND TITLE: Amendments for Principal 401(k) & 457 Plans Regarding Eligibility DEPARTMENT: Human Resources DATE: 05/11/2023 PERSON REQUESTING: Staci Datteri-Frey / Jill Scott / Cheryl Pattelli/ Ryan Rose Brief description of the, problem/issue: In order to clarify eligibility designations for the Principal 401(k) and Deferred Compensation 457 plan we have amended the documents to exclude employees of the health department and the position of DA as they have/will have 401(k) / 457 options available to them from PERA. -. What options exist for the Board? (include consequences, impacts, costs, etc. of options): Approval of amendments will clarify eligibility and provide voluntary savings options for all employee groups. No cost associated with change other than fee from attorney for the re -write. Recommendation: Recommendation is for approval. Perry L. Buck, Pro-Tem Mike Freeman, Chair Scott K. Jame', Kevin D. Ross Lori Saine Approve Recommendation Schedultt Work Session Other/Comments: 2023-1764 to/ Z 1 PEoo30 AMENDMENT NUMBER ONE DEFERRED COMPENSATION PLAN OF THE COUNTY OF WELD, STATE OF COLORADO The Plan named above gives The County of Weld, State of Colorado (the "Employer") the right to amend it at any time. According to that right, the Plan is amended effective as of the dates set forth below. This Amendment is intended as a good faith effort to comply with the requirements of the Setting Every Community Up for Retirement Enhancement Act of 2019, the Bipartisan American Miners Act of 2019, and corresponding guidance. This Amendment will supersede any inconsistent Plan provisions. By adding the following to the Table of Contents: "SECTION 7.05 --SPECIAL RULES" By replacing the reference to "70 1/2" in Section 5.03(b) with "59 1/2" for plan years beginning after December 31, 2019. By adding the following immediately before the last paragraph of Section 5.05: "Qualified Birth or Adoption Withdrawal. Effective January 1, 2023, the Plan permits qualified birth or adoption withdrawals as a separate withdrawal event. A Participant may receive a withdrawal up to $5,000 during the 1 -year period beginning on the date on which the Participant's child is born or on which the legal adoption by the Participant of an eligible adoptee is finalized. An eligible adoptee is any individual (other than a child of the Participant's spouse) who has not attained age 18 or is physically or mentally incapable of self-support. The $5,000 maximum is an aggregate amount of such distributions from all plans maintained by the Employer. The Participant can elect to repay that amount to his or her Plan account. In addition, such amount is not subject to the tax penalty set forth in Code Section 72(t)." By adding the following Section 7.05: "SECTION 7.05 --SPECIAL RULES Notwithstanding any provision of the Plan to the contrary: (a) In defining Required Beginning Date or determining required minimum distributions, any Plan references to age 70-1/2 shall only apply to Participants born before July 1, 1949, and references to age 701/2 shall be replaced with age 72 for Participants born after June 30, 1949. (b) With respect to distributions to Participants who die after December 31, 2021, whether before or after distribution has begun, a Participant's entire interest will be distributed to the Designated Beneficiary by December 31 of the calendar year containing the tenth anniversary of the Participant's death unless the Designated Beneficiary meets the requirements of an "eligible designated beneficiary" as set forth below. An "eligible designated beneficiary" may receive distributions over the life of such Designated Beneficiary. If there is no Designated Beneficiary as of September 30 of the year following the year of the Participant's death, the Participant's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant's death. An "eligible designated beneficiary" is defined as any Designated Beneficiary who is: (1) the surviving spouse of the Participant; (2) a minor child of the Participant; (3) disabled; (4) a chronically ill individual; or (5) an individual who is not more than 10 years younger than the Participant. The determination of whether a Designated Beneficiary is an "eligible designated beneficiary" is made as of the date of the Participant's death. If an "eligible designated beneficiary" dies before the portion of the Participant's interest is entirely distributed, the remainder of such portion must be distributed within 10 years after such "eligible designated beneficiary's" death." This amendment is made an integral part of the aforesaid Plan and is controlling over the terms of said Plan with respect to the particular item addressed expressly herein. All other provisions of the Plan remain unchanged and controlling. Unless otherwise stated in this amendment, eligibility for benefits and the amount of any benefits payable to or on behalf of an individual who is an Inactive Participant on the effective date stated above shall be determined according to the provisions of the aforesaid Plan as in effect on the day before he became an Inactive Participant. By signing this amendment, the Employer, as plan sponsor, has made the decision to adopt this plan amendment. Signed this 01 `sue day of THE COUNTY OF WELD, STATE OF COLORADO ATTEST: _. rAf,41Jeizo;�,� BY: 20 . BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO _4v/A Deputy Cler ! o the : oa,�: `] 1� Perry L. ;:uck , Pro-Tem JUN 2 12023 �aa '17‘1- AMENDMENT NUMBER TWO DEFERRED COMPENSATION PLAN OF THE COUNTY OF WELD, STATE OF COLORADO The Plan named above gives The County of Weld, State of Colorado (the "Employer") the right to amend it at any time. According to that right, the Plan is amended effective as of the date set forth below. This amendment clarifies the Plan's terms with respect to a certain class of employees, so that the Plan document is made consistent with the Employer's and such class's expectations regarding plan benefits. This amendment will supersede any inconsistent Plan provisions. By replacing the definition of "Eligible Employee" in section 1.02 with the following, effective as of June 1, 2023: "Eligible Employee means any Employee of the Employer, excluding the following: • Bargaining employees, unless covered by a collective bargaining agreement which provides for participation in the plan. • Independent Contractors. • Employees who are eligible for any retirement benefits under the Colorado Public Employees' Retirement Association." This amendment is made an integral part of the aforesaid Plan and is controlling over the terms of said Plan with respect to the particular item addressed expressly herein. All other provisions of the Plan remain unchanged and controlling. Unless otherwise stated in this amendment, eligibility for benefits and the amount of any benefits payable to or on behalf of an individual who is an Inactive Participant on the effective date stated above shall be determined according to the provisions of the aforesaid Plan as in effect on the day before he became an Inactive Participant. By signing this amendment, the Employer, as plan sponsor, has made the decision to adopt this plan amendment. Signed thisc=2/sr- day of n - , THE COUNTY OF WELD, STATE OF COLORADO ATTEST: Jeli..9;ok BY: eputy CI :f k to t BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO Pet-4/"Bu ck, Pro-Tem JUN 2 12023 020,2.3— / L DEFERRED COMPENSATION PLAN OF THE COUNTY OF WELD, STATE OF COLORADO SUMMARY OF MATERIAL MODIFICATIONS The purpose of this Summary of Material Modifications is to inform you of a clarification that has been made to the Deferred Compensation Plan of the County of Weld, State of Colorado's governing legal document. This clarification affects certain wording in the Plan Summary that was previously provided to you. The Plan Summary is modified as described below. Am I eligible for the DEFERRED COMPENSATION PLAN OF THE COUNTY OF WELD, STATE OF COLORADO? You are eligible to join the plan once you become an employee of COUNTY OF WELD, STATE OF COLORADO. Independent contractors, Bargaining employees (unless a collective bargaining agreement provides otherwise), and employees who are eligible for any retirement benefits under the Colorado Public Employees' Retirement Association shall not be eligible. New Contract Request Entity Info Entity Name. PRINCIPAL FINANCIAL GROUP Entity ID* 0'00006933 Contract Name* WELD COUNTY DEFERRED COMP 457 PLAN AMENDMENT 1 AND 2 Contract Status CTB REVIEW Contract Description* 457 PLAN AMENDMENT 1 AND 2 Contract Description 2 Contract Type* AMENDMENT Amount* $0.00 Renewable* NO Automatic Renewal Grant IGA HUMAN RESOURCES Department Email CM- HumanResources weidgov.c ORl Department Head Email CM-HumanResources-- DeptHead0sseldgov.com County Attorney GENERAL COUNTY ATTORNEY EMAIL County Attorney Email CM- COUNTYATTORNEY@WELDG EY@WELDG OV.COM ❑ New Entity? Contract ID 6971 Contract Lead. MRAIMER Contract Lead Email mraimergco.weld.co.us Requested B0CC Agenda Date. 05:24,:2023 Parent Contract ID Requires Board Approval YES Department Project Due Date 05120/2023 Will a work session with BOCC be required?* NO Does Contract require Purchasing Dept. to be included? If this is a renewal enter previous Contract ID If this is part of a MSA enter MSA Contract ID Note: the Previous Contract Number and Master Services Agreement Number should be left blank if those contracts are not in OnSase Contract Dat Effective Date Review Date. 10:02;2028 Renewal Date Termination Notice Period Committed Delivery Date Expiration [late* 12/13/2028 Contact Information Contact Info Contact Name Contact Type Contact Email Purchasing Purchasing Approver Approval Process Department Head Finance Approver CHERYL PATTELLI CHERYL PATTELLI Contact Phone 1 Contact Phone 2 Purchasing Approved Date Legal Counsel BYRON HOWELL DH Approved Date Finance Approved Date Legal Counsel Approved Date 06;07/2023 06 0712023 06'12 2023 Final Approval BOCC Approved BOCC Signed Date BOCC Agenda Date 06{21/2023 Originator MRAIMER Tyler Ref # AG 062123 Hello