City of Gainesville - File #: 180458

• File #: 180458
• Version: 1
• Type: Resolution
• Status: Adopted
• File created: 10/11/2018
• In control: City Commission
• On agenda: 11/1/2018
• Final action: 11/1/2018
• Title: Resolution for Amending the ICMA Retirement Corporation Governmental 457 Plan and Trust for Plan Number 300646 (B) This item requests recommendation and approval the attached Resolution amending the City’s 457 Deferred Compensation to allow for a tax preferred withdrawal for insurance premiums for former public safety personnel

Date	Ver.	Action By	Action	Result
11/1/2018	1	City Commission	Adopted (Resolution) and Approved the Recommendation	Pass

Title

Resolution for  Amending the ICMA Retirement Corporation Governmental 457 Plan and Trust for Plan Number 300646 (B)

This item requests recommendation and approval the attached Resolution amending the City’s 457 Deferred Compensation to allow for a tax preferred withdrawal for insurance premiums for former public safety personnel

Explanation

ICMA Retirement Corporation Governmental 457 Plan and Trust for Plan Number 300646 for the benefit of eligible employees and their beneficiaries has an optional provisions election that can be made to allow tax-free distributions up to $3,000.00 per calendar year for the payment of qualifying insurance premiums for eligible retired public safety officers under the plan.  In effect, this will provide a non-taxable source of funds to offset the retirees cost of health insurance. In order to effectuate this amendment the sponsoring employer must approve both the resolution, and execute the Adoption Agreement for the City Plan electing the tax-free distribution.

Fiscal Note

There is no fiscal impact to the City of Gainesville.

Recommendation

1)Approve the Resolution and 2) authorize the City Manager or his designee to execute the necessary plan adoption and restatement amendments necessary to implement this modification subject to the approval of the City Attorney as to form and legality.