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OCII updates deferred compensation plan and adopts COVID‑era leave policies
Summary
OCII approved amendments to its 457 deferred compensation plan to align with current IRS rules and to add loan and CARES Act withdrawal features, and delegated authority to adopt successor‑agency COVID leave policies consistent with the City and County of San Francisco; unions raised no objections at prior meetings.
OCII commissioners on July 21 approved an updated deferred compensation plan and adopted temporary COVID‑era leave policies intended to provide income security for staff.
Bree Mahorter, OCII deputy director for finance and administration, outlined proposed updates to the agency’s 457 deferred compensation plan that bring the plan into alignment with changes in IRS rules and add two categories of employee options. ‘‘The proposed changes fall into three broad categories,’’ Mahorter said: updates to conform to current IRS regulations (for example, allowing independent contractor compensation to be eligible and permitting employees to change deferral amounts at any time), a loan program allowing employees to borrow from vested balances, and CARES Act‑related provisions.
Under the proposal, employees could borrow up to $50,000 or 50% of their vested amount at an interest rate equal to prime plus 1 percent, with repayments handled by automatic payroll deductions. CARES Act options discussed would allow penalty‑free withdrawals of up to $100,000 in 2020 for COVID‑related needs and would expand emergency loan limits up to $100,000 while permitting deferral of loan repayments in certain circumstances. Mahorter said OCII’s plan has more than 120 participants and that staff, general counsel and MassMutual (the plan administrator) reviewed the changes. She also said labor partners Local 21 and SEIU raised no objections at a June 30 meeting.
Separately, staff presented Item 5G to delegate authority to the executive director to adopt successor‑agency paid‑leave policies during the public health emergency that are consistent with City and County policies. Monica Dean Stevens, who presented the leave package, described multiple leave categories: federal emergency paid sick leave (80 hours), an additional 80 hours of paid sick leave available for any purpose through Dec. 31, 2020 (subject to extensions), leave advancement when work is unavailable, and temporary adjustments to vacation and comp‑time caps through Dec. 31, 2021. She cited the Mayor’s emergency proclamation, local shelter‑in‑place orders, and the Federal Family First Coronavirus Response Act as authorities for the actions.
Commissioners asked whether these changes are temporary; Monica said the changes are tied to the public health emergency and would revert to normal caps if the emergency is lifted. Vice Chair Rosales moved Item 5G and Commissioner Brackett seconded; roll call recorded 4 ayes and the motion carried.
What the changes mean for staff: the deferred compensation amendments would modernize administration of the 457 plan, add loan and CARES Act‑era withdrawal flexibility, and allow more immediate deferral changes; the paid‑leave policy gives staff additional temporary paid‑leave time and relaxed caps for accruals while the public health emergency is in effect. Staff said the budget can absorb these changes and that unions did not object.
