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County plans to use forfeiture assets to cover retirement contributions, shift budgeted funds to medical plan
Summary
County staff proposed using up to $1 million in forfeiture assets from the MissionSquare 401(a) account to cover the county—s portion of retirement contributions, and moving $1 million of budgeted retirement funds into the medical plan to reduce a deficit.
County staff told commissioners the county's MissionSquare 401(a) forfeiture account currently holds more than $1 million in forfeited, non-vested retirement amounts. Staff recommended using up to $1 million of those forfeiture assets to cover the county's portion of retirement contributions beginning with the pay period of Aug. 24, 2025, and transferring a corresponding $1 million of budgeted retirement funds to the county—s medical plan to help reduce a deficit there.
Staff explained how the forfeiture account accumulates: when employees leave before vesting, the non-vested employer contribution amounts are forfeited into the county—s forfeiture account and must be used in a timely manner. Staff said transfers from the forfeiture account typically occur every five to seven years and that the county has done similar transfers twice previously during the present staff tenure.
The recommendation included continuing benefits funding up to the $1 million threshold and using previously budgeted retirement funds to fill a medical insurance deficit; staff said additional plan design changes and new programs will be presented in open enrollment to further reduce the medical deficit. Commissioners moved the item to consent with no separate debate recorded in the transcript excerpt.
