Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Employee Benefits topic
No spam. Unsubscribe anytime.
Commissioners approve leaving optional "super catch-up" out of county's 401(k) plan; HR outlines federal retirement-law changes and 529 payroll option
Summary
Human-resources director Matthew Phillips briefed the board on federal retirement-law changes that require a Roth option and part-time eligibility for long-term part-time employees. Commissioners agreed not to implement the optional "super catch-up" provision for this plan year. A representative of the Idaho 529 college-savings program also gave a
Human-resources director Matthew Phillips briefed the Bannock County commissioners on federal retirement-law changes that affect the county's Percy Choice 401(k) plan and on other benefits options including the Idaho 529 college-savings program.
Phillips said a federal law enacted Dec. 23, 2022 (the SECURE 2.0 Act) requires several changes affecting 401(k) plans. He said the county must offer a Roth (post-tax) contribution option in addition to the existing pretax contribution option and must allow part-time eligibility for long-standing part-time employees who have W-2 wages. "We will have to bring before you within the next couple of months changes to our status policy and retool how we do that," Phillips said.
Phillips also discussed catch-up contribution rules. The new federal law contains an optional higher "super catch-up" limit for certain ages, which the county may choose to adopt. After discussing the administrative complexity and noting that few employees currently reach regular catch-up limits, Phillips recommended not adopting the super catch-up provision for this plan year. A commissioner moved to defer adoption of the super catch-up provision for the county plan this year; the board approved the motion on a voice vote.
Phillips said staff will pursue the required plan changes (adding a Roth option and establishing part-time eligibility procedures) and will provide educational sessions for employees ahead of implementation. He said payroll and vendor coordination remain under review and that some plan changes can be implemented midyear.
In a separate presentation, Nick Theras, a representative of the State of Idaho 529 college-savings program, described how an employer can offer the 529 plan as a voluntary payroll-direct-deposit benefit. He said the Idaho plan offers state tax deductions for Idaho taxpayers (up to $12,000 annually for married joint filers and $6,000 for single filers), tax-deferred growth and qualified tax-free withdrawals for post-secondary education expenses. The program is voluntary and incurs no cost to the county; staff said they would consider educational outreach to employees about the option.
Votes at a glance: Commissioners voted to defer adoption of the optional super catch-up provision for the Percy Choice 401(k) plan for this plan year; the motion carried on a voice vote.
