HomeMy WebLinkAboutID# 15-758 ICMA-RC Loan ImplementationCITY Or
LADE L LSINORT
DRGAM r.XTRCME.
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: GRANT YATES
CITY MANAGER
DATE: SEPTEMBER 22, 2015
SUBJECT: ICMA -RC Loan Implementation for 457 Plan Sponsors
Recommendation
It is recommended that the City Council approve and adopt:
Resolution No. 2015-, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, APPROVING THE ADOPTION OF THE ICMA -RC LOAN
IMPLEMENTATION FOR 457 PLAN SPONSORS
Background
The City of Lake Elsinore ( "City ") has established a voluntary retirement plan (the "Plan ") for
such City employees which serves the interest of the City by enabling it to provide reasonable
retirement security for its employees while also assisting in the attraction and retention of
competent personnel. The value of the employee's account is based on the pre -tax
contributions made by the employee and the investment performance over time.
The attached resolution would allow eligible Plan participants to borrow money from their
accounts. The loan may be taken for any purpose. However, a participant may only have one
(1) loan outstanding at any given time. The loan must be repaid within five (5) years unless it is
a repayment for a principal residence loan, in which case the repayment period will be fifteen
(15) years.
ICMA -RC administers the plan including enrollment, fund allocation, loan application and
account distribution. The loan re- payments will be deducted from the employee's paycheck
and payments on their behalf are forwarded to ICMA through Accounts Payable.
ICMA -RC LOAN - IMPLEMENTATION
September 22, 2015
Page 2
Discussion
This Resolution shall apply to the term of the plan sponsorship through ICMA -RC. As the City's
Plan Administrator and under the Internal Revenue Code 501, ICMA proposes to offer this
added benefit to eligible participants.
Fiscal Impact
No financial impact to the City. All applicable fees will be debited from the participant's account
balance and /or from the participant's loan repayments prior to crediting the repayment of
principal and interest to the participant's account.
Prepared by: Carrie Hanes
Human Resources /Risk Management Analyst
Approved by: Grant Yates
City Manager
Attachment: Resolution No. 2015-
RESOLUTION NO. 2015-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, APPROVING THE ADOPTION OF THE
ICMA -RC LOAN IMPLEMENTATION FOR 457 PLAN SPONSORS.
WHEREAS, the City Council of the City of Lake Elsinore agrees to implement the
ICMA -RC loan program for Section 457 sponsors #302208 rendering valuable services,
and
WHEREAS, the City of Lake Elsinore has established a retirement plan (the
"Plan ") for employees which serves the interest of the City by enabling it to provide
reasonable retirement security for its employees, by providing increased flexibility in its
personnel management system, and by assisting in the attraction and retention of
competent personnel; and
WHEREAS, the City of Lake Elsinore has determined that permitting participating
employees in the retirement plan to take loans will serve these objectives;
NOW, THEREFORE, the City Council of the City of Lake Elsinore, California,
does hereby resolve as follows:
Section 1. That the Plan will permit loans such that participating employees
may obtain loans against their retirement accounts.
Section 2. That the City Manager or his designee is authorized to apply for and
execute any necessary documents and agreements to implement the loan program.
Section 3. This Resolution shall take effect from and after the date of its
passage and adoption.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council
of the City of Lake Elsinore, California, this 22nd day of September, 2015,
STEVE MANOS
MAYOR
ATTEST:
DIANA GIRON
ACTING CITY CLERK
APPROVED AS TO FORM:
BARBARA ZEID LEIBOLD
CITY ATTORNEY
City Council Resolution No. 2015 -
Page 2 of 2
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
CITY OF LAKE ELSINORE }SS
I, DIANA GIRON, Acting City Clerk of the City of Lake Elsinore, California,
hereby certify that Resolution No. 2015- was adopted by the City Council of the
City of Lake Elsinore, California, at a regular meeting held on the 22nd day of
September 2015, and that the same was adopted by the following vote:
AYES:
NOES: None
ABSENT: None
ABSTAIN: None
DIANA GIRON
Acting City Clerk