DATE: November 8, 2022
TO: Board of Supervisors
SUBMITTED BY: Hollis Magill, Director of Human Resources
SUBJECT: Amend the Deferred Compensation Management Council Bylaws
RECOMMENDED ACTION(S):
TITLE
Approve the Amended Deferred Compensation Management Council Bylaws.
REPORT
The recommended action has no fiscal impact on the County. At its September 27, 2022 meeting, the Deferred Compensation Management Council (the “Council”) amended its bylaws by a unanimous vote of its members and is now seeking your Board’s approval. The terms of the bylaws require that your Board approve amendments to the bylaws. This item is countywide.
ALTERNATIVE ACTION(S):
Your Board may choose not to approve the amended bylaws and recommend that the Council revise and resubmit the bylaws for Board approval.
FISCAL IMPACT:
The recommended action has no fiscal impact on the County.
DISCUSSION:
On January 20, 1976, the Board of Supervisors adopted Resolution No. 76-102, which created the County of Fresno 457(b) Deferred Compensation Plan (the “457(b) Plan”) and the Council. On April 17, 2012, the Board of Supervisors adopted Resolution No.12-154, which modified the membership of the Council to its current composition: the County Administrative Officer (CAO), Auditor-Controller/Treasurer-Tax Collector, Director of Human Resources, Retirement Administrator, one (1) department head appointed by the CAO, and two (2) members at-large appointed by the Board of Supervisors. In addition, on April 5, 2022 your Board adopted Resolution No. 22-114 which also delegated the authority to oversee the County of Fresno 401(a) Defined Contribution Plan (the “401(a) Plan”) to the Council. The duties and responsibilities granted to the Council include:
• Enforcement of the provisions of the 457 (b) and 401(a) Plan Documents;
• Direction of the third-party administrator on behalf of the County to make disbursement of 457 (b) and 401(a) Plan benefits;
• Selection and review of any investment currently offered or under consideration to be offered as an investment option under the 457 (b) and 401(a) Plans;
• Make recommendations to the Board of Supervisors, as appropriate, regarding the appointment of such agents, advisors, and counsel, including a third-party administrator as necessary for the administration and operation of the 457 (b) and 401(a) Plans.
The bylaws were originally approved by the Board of Supervisors on December 11, 2012. The bylaws were most recently amended by your Board on May 26, 2020. The bylaws are being recommended for amendment to reflect the new responsibilities related to implementation of the 401(a) Plan by your Board on April 5, 2022.
Staff has attached a redlined version (Attachment B) and a final version (Attachment A) of the proposed amended bylaws. The proposed amended bylaws (Attachment A) were unanimously approved by a five-vote majority of the Deferred Compensation Management Council at its September 27, 2022 meeting. Staff would like to summarize the proposed amendments to the bylaws as follows:
1. Section 1 - FORMATION
a. This section was updated to state that the Council was initially created by the Board of Supervisors in 1976 per Resolution 76-102.
b. Language was added to state that the Council is granted the authority to oversee the 401(a) Plan by Resolution 22-114.
2. Section 2 - PURPOSE
a. Staff added more context to the term “Trust” by stating that the term has the same definition as Article 2.29 of the County of Fresno 457(b) Deferred Compensation Plan.
b. Staff added Paragraph 2.3, which states “The Council is a non-partisan, non-sectarian, non-profit making organization. It does not take part officially in, nor does it lend its influence to any political issues.” This paragraph incorporates language found in the County Boards, Commissions, and Committees Bylaws Template provided in Exhibit A to Management Directive, Chapter No. 2700 (Boards, Commissions, and Committees).
3. Section 3 - DEFINITIONS
a. The definition of “Participant” is as defined by the 457(b) Plan and the 401(a) Plan.
b. The definition of “Plan” was changed to “Plans” and refers to both the 457(b) Plan and the 401(a) Plan.
4. Section 4 - MEMBERS
a. Subsection 4.3.1.1 relating to Board appointed members was deleted because the language was redundant with language in Paragraph 4.4.
b. Subsection 4.3.3 relating to meeting attendance was deleted in favor of new language in Paragraph 4.5, as staff determined that Ordinance Code Chapter 2.68 covers automatic resignation due to an appointed Council member’s absences.
c. Language was added to the Subsections in Paragraph 4.4 providing that any newly appointed member will serve out the remainder of the previous member’s term. This is consistent with current practice.
5. Section 5 - OFFICERS
a. Language was added to Subsections 5.7.3 and 5.7.4 to further clarify the duties of the Council Secretary or their designee. The Secretary of the Council shall now also “keep the roll and certify the presence of a quorum at all meetings and hearings of the Council or of standing subcommittees” and maintain “a list of all active Council members, and handle Council correspondence.”
6. General Language Changes
a. Throughout the bylaws, references to the “Plan” were changed to the “Plans” to reflect the Council’s new responsibilities related to the 401(a) Plan.
REFERENCE MATERIAL:
BAI #39, April 5, 2022
BAI #42, May 26, 2020
BAI #50, June 4, 2019
BAI #21, December 11, 2012
BAI #24, April 17, 2012
BAI #19b, January 20, 1976
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Attachment A, Amended Bylaws
On file with Clerk - Attachment B, Amended Bylaws - Redlined
CAO ANALYST:
Samantha Buck