DATE: August 4, 2020
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, Director of Human Resources
SUBJECT: Implementation of COVID-19 Related Distribution and Loan Provisions of the CARES Act with Respect to the County of Fresno 457(b) Deferred Compensation Plan
RECOMMENDED ACTION(S):
TITLE
Adopt Resolution implementing amendments to the County of Fresno 457(b) Deferred Compensation Plan related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
REPORT
Approval of the recommended action would allow qualified County of Fresno 457(b) Deferred Compensation Plan (the "Plan") participants to take an in-service distribution from their account, increase the dollar amount and proportion of an account from which an eligible participant may borrow, temporarily allow qualified participants to initiate a second loan, allow qualified participants to delay repayment of existing loans, and suspend payment of required minimum distributions for calendar year 2020. This item is countywide.
ALTERNATIVE ACTION(S):
The alternative to the recommended action would include (1) take no action to implement the proposed amendments to the Plan related to the CARES Act; and (2) remove or amend specific provisions within the proposed Resolution.
FISCAL IMPACT:
There is no Net County Cost associated with the recommended action.
DISCUSSION:
The County has offered its employees a deferred compensation plan, as authorized by Internal Revenue Code (IRC) Section 457, since 1976. The Plan allows employees to defer pre-tax and post-tax dollars into a variety of investment options in order to save for retirement. Currently, the Plan has nearly 6,800 participants with over $280 million in assets. Your Board has delegated the authority to oversee the Plan to the Deferred Compensation Management Council (the "Council"), which is comprised of the County Administrative Officer (CAO), Auditor-Controller/Treasurer-Tax Collector, Director of Human Resources, Retirement Adm...
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