Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Employee Retirement topic
No spam. Unsubscribe anytime.
Board adopts state retirement participation resolution to offer 403(b)/401(k)/457 options
Summary
Millington Municipal Schools approved a resolution to join state-participating retirement products so employees can access Tennessee Deferred Compensation and state 401(k) options; a State Treasury representative briefed the board beforehand.
The Millington Municipal Schools Board of Education voted to adopt a resolution and participating-employer agreement to offer state retirement products including 401(k) and 457 deferred-compensation options and to allow participants to roll existing 403(b) accounts into the state platform.
Tim Joyce, a representative of the Tennessee State Treasury West Tennessee field team, briefed the board on the change and said the transition does not add costs to the district. “Nobody's losing anything. If they want to keep their 403(b), that's fine,” Joyce said, adding the state will assume fiduciary oversight for the deferred-compensation plans once the district adopts the agreement.
Why it matters: the change centralizes employee retirement options in state-managed vehicles the presenter said will simplify recordkeeping and participant education, and could make benefit packages consistent with neighboring districts. Joyce said the documentation and amendment process mirrors what other nearby districts have done.
Board members asked about contribution caps, portability and whether plan options would match those in nearby districts such as Germantown and Collierville. Joyce said caps exist for 401(k)/457 plans (he referenced an approximate $25,000 cap in the discussion) and confirmed plan options would be comparable once the resolution is adopted. He also noted part-time employees and board members may participate in deferred-comp plans under the state program.
A roll-call vote recorded all trustees voting in favor.
The board approved the resolution identified in the agenda as document number 2401ks and directed staff to complete the documentation with State Treasury.
