1 / 7

Enhancing Employee Benefits with Deferred Compensation Plan Updates

Learn about the latest updates to the City of Scottsdale's deferred compensation plan introduced by the Employee Benefits and Wellness Team on October 21, 2009. The plan includes changes to the ICMA-RC fund lineup, offering a standard trust series of funds with qualitative and quantitative due diligence. City employees can align their investments with the trust series, with funds being eliminated mapped to similar options. Consider voluntary enhancements like Managed Accounts for passive investors and the Brokerage Window Option for self-directed investment. Stay informed as communication and fund transfers occur over 90 days.

thomas-kirby
Télécharger la présentation

Enhancing Employee Benefits with Deferred Compensation Plan Updates

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 457 Deferred Compensation Plan Update Employee Benefits and Wellness Team October 21, 2009

  2. ICMA-RC Fund Lineup • ICMA-RC has a standard trust series lineup of funds. • ICMA-RC performs full qualitative and quantitative due diligence on funds in the trust series. • City of Scottsdale will make changes to its fund lineup to align with changes ICMA-RC has made to its standard trust series.

  3. Monies invested in a fund being eliminated will be mapped to a similar fund that is in the trust series – employees can choose some other fund if they wish. • Communication to employees and transfer of funds to be accomplished in about 90 days. • Funds eliminated represent about 5% of City of Scottsdale plan assets. • More information and sample employee communication to follow.

  4. Default for Funds being Eliminated

  5. Managed Accounts – new ICMA-RC service being considered • Totally voluntary program enhancement in which an employee may elect to turn over management of their account to a third party portfolio manager Ibbotson and Associates. • Program designed for “passive investor” who prefers to delegate investment decisions to professionals. • Service customized to investors ‘ long term goals, planned retirement age, amount of savings, etc. • Online enrollment or enroll during meeting with retirement plan specialist. • Participant may opt in or out of program. • Most other cities offer this service in their 457 plan. • Employee pays fee based on size of account balance. • Ranges from .6% annually on first $25,000 to .25% annual for amounts over $250,000.

  6. Brokerage Window Option – new ICMA-RC service being considered • Totally voluntary program enhancement in which participants may elect to manage their funds through self directed investment in the universe of stocks and mutual funds. • Minimum $30,000 account balance is required. • Initial minimum transfer to brokerage account is $5,000. • May invest in funds outside of City of Scottsdale standard lineup – including those being replaced. • Employee bears full responsibility for investment decision.

  7. Signature of disclosure statement required – employee responsible for choices. • Transactions made on line or by phone. • $50 start up fee plus additional fee per transaction. • Includes statements, confirmation of transactions. • More information, meetings with retirement plan specialists to follow.

More Related