HomeMy WebLinkAbout~Master - Authorizing Finance Director to Make Plan Sponsor Elections to the City of Ames Deferred Compensation and Utility Retirement Plans to Implement CARES Act Provisions RESOLUTION NO. 20-152
RESOLUTION AUTHORIZING FINANCE DIRECTOR TO MAKE PLAN SPONSOR
ELECTIONS TO THE CITY OF AMES DEFERRED COMPENSATION AND UTILITY
RETIREMENT PLANS TO IMPLEMENT CARES ACT PROVISIONS FOR
PARTICIPANT DISTRIBUTIONS AND LOANS
FOR THE CITY OF AMES,IOWA
WHEREAS,the recently passed Coronavirus Aid,Relief,and Economic Security(CARES)
Act included temporary rule changes that impact retirement plans including the City of Ames defined
contribution Utility Retirement Plan 403(b) and voluntary employee deferred compensation plan
457(b); and,
WHEREAS, the CARES Act includes a mandatory provision that provides a waiver of
required minimum distributions and no action is required by the City to implement this provision;
and,
WHEREAS,included are two optional provisions related to coronavirus-related distributions
and participant loans and repayment; and,
WHEREAS,the optional provisions allow participants to make early withdrawals from plans
without penalty,expand the availability of participant loans from the plans,and allow for deferment
of repayment of existing loans; and,
WHEREAS,the optional provisions do no increase costs to the City other than for additional
plan administration; and,
WHEREAS,these provisions are changes to existing rules related to participant withdrawals
and loans from their retirement fund; and,
WHEREAS,the City may rely on employee certification that they satisfy provisions required
for coronavirus-related distributions and these provisions are temporary elections related to the
CARES Act and are not permanent changes to the retirement plan documents; and,
WHEREAS,to help the new provision it is recommend to authorize the Finance Director to
make plan sponsor elections related to the adoption of optional provision of the Coronavirus Aid,
Relief,and Economic Security Act for the City of Ames deferred compensation and utility retirement
plans.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the Finance Director is authorized to make plan sponsor elections related to the adoption of
optional provision of the Coronavirus Aid,Relief,and Economic Security Act for the City of Ames
deferred compensation and utility retirement plans.
ADOPTED THIS 14`'day of April, 2020.
Diane R. Voss, City Clerk John A. Haila, Mayor
Introduced by:
Seconded by:
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Martin
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 14t'day of April, 2020.