To: Board of Supervisors
From: Ann Elliott, Human Resources Director
Report Title: Create and Implement a new 401(a) Plan for Members of the Physicians' and Dentists' Organization of Contra Costa County (post-PEPRA hires)
?Recommendation of the County Administrator ? Recommendation of Board Committee
RECOMMENDATIONS:
1. ADOPT Resolution No. 2024/XXX approving the creation and implementation of a new 401(a) Plan for retirement savings for Members of the Physicians' and Dentists' Organization of Contra Costa County, effective December 1, 2024.
2. AUTHORIZE the County Administrator, or designee, to take all necessary actions to implement the 401(a) Plan with a new plan document that will be separate from the County's 457(b) Deferred Compensation Plan.
FISCAL IMPACT:
The program is funded through plan participant fees. There is no fiscal impact beyond overhead administration support costs which are reimbursed annually through the plan.
BACKGROUND:
On October 8, 2024, a side letter amending the Memorandum of Understanding between the County and the Physicians' and Dentists' Organization of Contra Costa County ("PDOCC") was approved, concerning the creation and implementation of an employee-funded 401(a) Plan for those PDOCC employees who became new (not reciprocal) members of CCCERA on or after January 1, 2013, also known as "post-PEPRA hires".
The Plan is a defined-contribution plan within the meaning of Internal Revenue Service Code section 401(a). Its primary purpose is to provide Post-PEPRA PDOCC members with a source of retirement funds by deferring a portion of their base salary. The recordkeeper will administer the 401(a) Plan and is also the Plan Trustee.
All employees who are post-PEPRA hires employed in a classification represented by PDOCC will be automatically enrolled in the 401(a) Plan following establishment of the Plan or upon employment, whichever is later. Participation in the Plan is mandatory.
Each month, two percent (2%) of these empl...
Click here for full text