Commissioners add NC 457 deferred-compensation option for county employees
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Summary
The board authorized the county to offer the North Carolina 457 deferred-compensation plan alongside the existing 401(k). County staff said adding the plan creates flexibility for employees and does not require an immediate employer match.
The Ashe County Board of Commissioners approved a resolution to add the North Carolina 457 deferred-compensation plan as an additional retirement option for county employees.
Nick, the county's newly hired economic development director and assistant county manager, presented a comparison showing the 457 plan and the county's 401(k) are broadly similar. Nick told the board the primary differences are the hardship and unforeseen-emergency withdrawal rules and certain tax and penalty treatments; he noted the 457 plan provides a potential exemption from early-withdrawal penalties for employees who qualify as retired under North Carolina rules.
County staff said the change is an addition only and does not remove or alter the existing 401(k); they also said the county would not immediately fund an employer match for the 457 plan, meaning there is no additional budget cost at approval. Commissioners moved and seconded the resolution and declared it approved.
Human Resources staff were directed to notify employees and implement enrollment procedures if the board wished to proceed, and to return with any follow-up items related to employer matching in future budget discussions.
