HomeMy WebLinkAboutAgenda Report - December 16, 1992 (74)OF
CITY OF LO®I
COUNCIL COMMUNICATION
AGENDA TITLE: Amendment to City of Lodi Deferred Compensation Plan
as it Pertains to Withdrawals by Retired Employees
MEETING DATE: December 16, 1992
PREPARED BY: Assistant City Manager
RECOMMENDED ACTION: The City Council add the following sentence to
Section 6.03 of the Deferred Compensation Plan:
"Participants in Distribution may at anytime 'cash
out, all funds . "
BACKGROUND INFORMATION: The City has had a deferred income plan since 1937.
Since that time many employees have retired. Our
plan does provide a great deal of flexibility until
an employee begins receiving benefits. Once he/she retires they are locked
into the choices they made upon retiring.
The Deferred Canpensation Committee recognizes that after retirement, needs
change and the retiree may have bona fide reasons to change the method of
distribution.
Internal Revenue Service (IRS) regulations will not allow Changes at the
request of the employee as that would be considered "constructive receipt" and
would subject all monies in the plan to be subject to taxation.
IRS has no problem with an employee receiving all hie funds as they will be
subject to tax at that time.
Therefore, the committee recommends a change in our plan which clarifies the
right of a person to receive those funds at anytime.
FUNDING: None required
Respectfully submitted,
L ,nA"
erry L. Glenn
Chair, Deferred Compensation C' I'm
Assistant City Manager
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Attachment
CCCOM671/TXTA.07A
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APPROVED: /k.dJ
THOMAS A. PETERSON
City Manager
RESOLUTION NO. 92-..J
A RESOLUTION OF THE LODI CITY COUNCIL
AME^iMlt�G THE CITY OF LODI DEFERRED COMPENSATION PLAN
AS IT PERTAINS TO WITHDRAWALS BY RETIRED EMPLOYEES
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BE IT RESOLVED, that upon the recommendation of the Deferred
Compensation Committee, the Lodi City Council does hereby approve an
amendment to the City of Lodi Deferred Compensation Plan as it pertains
to withdrawals by retired employees by adding the following sentence to
Section 6.03 of the Deferred Compensation Plan:
"Participants in Distribution may at any time 'cash out' all
funds."
Dated: December 16, 1992
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I hereby certify that Reeolutfon No. 92-190 was passed and
adopted by the Lodi City Council in a regular meting held December 16,
1992 by the following vote:
Ayes= Council Members - Davenport, Mann, Sieglock, Snider
and Pennino (Mayor)
Noes= Council Members ' None
Absent: Council Members - None
AV/1 -
►lice M. Rimche
City Clerk
92-190
RES92190/TXTA.02J