Title
Resolution Authorizing the City Manager to Change the Third-Party Administrator of the City’s 457 Deferred Compensation Plan to Empower Financial Services, Inc., and to Make Other Necessary Changes to the City’s Supplemental Retirement Income Plan
Body
LEGISLATIVE INTENT/PURPOSE:
WHEREAS, the City Manager is generally authorized by Sec. 8-1 of the Wilmington City Code (“WCC”) to promulgate and put into effect rules and regulations governing the welfare of City employees; and,
WHEREAS, notwithstanding the City Manager’s general rule-making authority, Sec. 8-1 of the WCC reserves to City Council the authority to change or modify any rules or regulations, or any portions thereof, which govern policies affecting retirement, and other policies affecting the compensation of employees; and,
WHEREAS, this resolution proposes to grant the City Manager authority to change the third-party administrator of the City’s 457 deferred compensation plan to Empower Financial Services, Inc., who already administers the City’s 401(k) plan; and,
WHEREAS, this resolution also proposes to grant the City Manager authority to elect to direct the City’s 4.5% deferred compensation contributions for all benefit eligible employees to the Supplemental Retirement Income Plan of North Carolina (NC 401(K)), in order to comply with NC Department of the State Treasurer benefits regulations; and,
WHEREAS, this recommendation affects the retirement policies for employees, and City Council approval is therefore required.
THEREFORE, BE IT RESOLVED:
THAT, the City Manager is authorized to change the third-party administrator of the City’s 457 deferred compensation plan to Empower Financial Services, Inc.
THAT, the City Manager is authorized to elect to direct the City’s 4.5% deferred compensation contribution for all benefit eligible employees to the Supplemental Retirement Income Plan of North Carolina (NC 401(K)), in order to comply with the NC Department of the State Treasurer benefits regulations.
THAT, the City Manager is authorized and directed to execute all necessary agreements and documents to effectuate the transition of the above changes and to ensure the plan participants are properly informed about the transition process, timeline, and any impacts to their accounts.
THAT, this resolution shall take effect immediately upon adoption, and the transition process shall commence as soon as practicable in accordance with all applicable laws and regulations.