To: Board of Supervisors
From: Ann Elliott, Human Resources Director
Report Title: Resolution Approving Amendments to the County Deferred Compensation Plan (IRC ? 457), effective April 1, 2024.
?Recommendation of the County Administrator ? Recommendation of Board Committee
RECOMMENDATIONS:
1. ADOPT Resolution approving amendments to the Contra Costa County Deferred Compensation Plan (I.R.C. ? 457) to allow Roth in-plan conversions and permit external rollovers by separated/retired employees, effective April 1, 2024.
2. AUTHORIZE the Human Resources Director, or designee, to take necessary actions to implement the County's Deferred Compensation Plan as amended.
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:
The Deferred Compensation Committee recommended, and the County Administrator approved, two amendments to the County's Deferred Compensation Plan ("Plan").
The first change would provide the Plan's participants with the option for a Roth in-plan conversion on an after-tax basis to a Roth Elective Deferral Account. A Roth in-plan conversion allows participants to convert pre-tax contributions to Roth after-tax contributions. The converted amounts are taxable in the year of conversion, rather than when they are distributed, which can help to manage future tax liabilities.
The second amendment to the Plan would allow separated and retired Plan participants the option of rolling over contributions from other eligible deferred compensation plans to the County's Plan, an option which at present is only available to current employees.
CONSEQUENCE OF NEGATIVE ACTION:
If these amendments are not approved, County employees will not be able to make Roth in-plan conversions and separated and retired Plan participants will not be able to rollover contributions made to other eligible deferred compensation pl...
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