HomeMy WebLinkAboutResolution 2023-006 Authorizing Town Staff to Send 60-Day Notice of Termination of 457 Deferred Compensation Plan to the ICMA Retirement Corporation and to Begin Transition Process to Nationwide Retirement Solutions 457 Plan MARANA RESOLUTION NO. 2023-006
RELATING TO PERSONNEL; AUTHORIZING TOWN STAFF TO SEND 60-DAY NO-
TICE OF TERMINATION OF 457 DEFERRED COMPENSATION PLAN TO THE ICMA
RETIREMENT CORPORATION AND TO BEGIN TRANSITION PROCESS TO NA-
TIONWIDE RETIREMENT SOLUTIONS 457 PLAN
WHEREAS on November 15, 1994, the Town Council adopted Resolution No. 94-
34 adopting the deferred compensation plan and appointing ICMA Retirement Corpora-
tion (hereinafter "ICMA") to serve as administrator of the plan; and
WHEREAS the Arizona Legislature passed Senate Bill 1348 Consolidation of State
Deferred Compensation Plans which was subsequently signed by Governor Ducey with
an effective date of September 29, 2021; and
WHEREAS SB 1348 mandates that as of July 1, 2022, any employee of an Arizona
State Retirement System(hereinafter"ASRS") employer will have the opportunity to vol-
untarily participate in any deferred compensation plan offered by ASRS; and
WHEREAS all the ASRS supplemental plans are administered by Nationwide Re-
tirement Solutions (hereinafter "Nationwide"), therefore the Town must offer plans ad-
ministered by Nationwide as an option for employees; and
WHEREAS upon reviewing both ICMA and Nationwide, Town staff determined
that the 457 plan administered by Nationwide is financially advantageous to employees
and therefore Town staff seek to terminate our agreement with ICMA and transition to
Nationwide effective March 25, 2023; and
WHEREAS in order to terminate our agreement with ICMA,Town staff must send
a 60-day notice of termination to ICMA; and
WHEREAS Town staff intends to bring forward the Nationwide 457 plan for for-
mal adoption before the March 25, 2023 effective date; and
WHEREAS the Town Council finds that adopting this resolution authorizing
Town staff to send 60-day notice of termination of 457 deferred compensation plan to the
ICMA Retirement Corporation and to begin transition process to Nationwide 457 plan is
in the best interests of the Town and its citizens.
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Resolution No.2023-006
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE TOWN OF MARANA, ARIZONA, as follows:
SECTION 1. Town staff is hereby authorized to send 60-day notice of termination of the
Town's current 457 deferred compensation plan to the ICMA Retirement Corporation
and to begin the transition process to Nationwide Retirement Solutions 457 plan.
SECTION 2. The Town Manager and staff are hereby directed and authorized to under-
take all other and further tasks required or beneficial to carry out the terms of this Reso-
lution.
PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Ar-
izona, this 17th day of January, 2023.
.11)
Mayor Ed Honea
ATTEST: APPRO D AS TO FORM:
40,"
David L. Udall, Town Clerk J. : airall, Town Attorney
4666*
MARANA AZ
ESTABLISHED 1977
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Resolution No.2023-006