DATE: March 19, 2024
TO: Board of Supervisors
SUBMITTED BY: Hollis Magill, Director of Human Resources
SUBJECT: Deferred Compensation Plan Contribution Match Increase
RECOMMENDED ACTION(S):
TITLE
Approve an increase in the County's employer matching contribution related to employees' County of Fresno 457(b) Deferred Compensation Plan contributions,
for County employees in Retirement Tiers IV and V for positions designated as Unrepresented, Management, Senior Management Supervisor, Senior Management, Assistant Department Heads, Department Heads and Elected Officials.
REPORT
There is an increase of $16,735 in Net County Cost (NCC) associated with the recommended action for FY 2023-24. Approval of the recommended action would increase the County's match of employees' contributions to their County of Fresno 457(b) Deferred Compensation Plan (the "457(b) Plan) account in an effort to remain competitive in the local market. Impacted department appropriations will be monitored and adjustments will be brought to your Board if needed.
ALTERNATIVE ACTION(S):
If your Board were not to approve the recommended action, there would be no change to the existing amount of the County's 457(b) Plan contribution match.
FISCAL IMPACT:
The estimated cost of the recommended action for fiscal year 2023-24 is approximately $61,716; $16,735 of which is NCC. Impacted department appropriations will be monitored and budget adjustments will be brought to your Board, if necessary. The estimated cost for FY 2024-25 is approximately $229,231; $62,159 of which is NCC. Sufficient appropriations will be included in the impacted department's FY 2024-25 budget requests.
DISCUSSION:
On April 5, 2022, your Board adopted the 401(a) Defined Contribution Plan (Plan) pursuant to Resolution No. 22-114. The purpose of the 401(a) Plan is to receive employer matching contributions related to employees' 457(b) Plan contributions.
On September 21, 2021, the Board of Supervisors approved an employer ...
Click here for full text