BY COUNCILOR FENA:01-0889R
RESOLUTION AUTHORIZING AND RATIFYING CHANGES TO THE DEFERRED COMPENSATION PLAN AND ADMINISTRATIVE CONTRACTS INVOLVING THE PLAN.
BE IT RESOLVED, that the proper city officials, including the deferred
compensation commission, acting through reasonable procedures are authorized
to implement or ratify, within the time required by law, to the extent
allowed by law, any city deferred compensation plan and any agreement to
which the city is a party which agreement concerns the operation or administration
of a deferred compensation plan, so that it contains substantially the
terms and conditions set out in Public Document No. _____ on file with
the city clerk.
Tax law changes have affected government deferred compensation plans including the city of Duluth plan. Government plans now have the same deferral limits, benefit payment flexibility and portability as 401(k), 403(b) or IRA plans (under Section 408). However, two important differences allow distributions in government plans before age 59½ without the 10% excise tax, and employees in government plans may "catch up" as they near retirement age.
The plan and trust are effective January 1, 2002.