Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Personnel Benefits topic
No spam. Unsubscribe anytime.
Johnson County solid waste board authorizes retirement plan structure change to add 401(a) sidecar and Roth option
Summary
The Johnson County Solid Waste Management District board voted Jan. 12 to authorize a change to its employee retirement plan structure — creating a 401(a) sidecar for employer contributions and adding a Roth option to the existing 457(b) — and authorized the executive director to sign plan documents.
The Johnson County Solid Waste Management District board voted Jan. 12 to authorize a restructuring of the district's employee retirement benefits, creating a 401(a) sidecar to hold employer contributions and adding a Roth option to the current 457(b) plan.
Board counsel and staff explained the change to board members, saying the move separates employer contributions from employees' voluntary 457(b) deposits so employees retain their full deferral room. "The employer's contribution is, 11% of the full time employees' gross salary," the presenter said while explaining how the existing 457(b) structure can limit an employee's ability to make catch-up contributions. Staff noted the employer rate has historically mirrored the county and is roughly 11–11.2 percent.
Angela and the board said they had consulted the plan administrator at Nationwide, who described the administrative mechanics and said the change is a structure adjustment rather than an increase to employer cost. "This is nothing more than a structure change," the presenter said. Board members asked whether the change would increase costs or create new administrative burdens; staff answered that required employer contributions remain based on gross pay and the district had not been told the change would add employer charges.
Board members discussed whether the executive director should be authorized to sign the plan documents. After debate over administrative safeguards and oversight, a motion authorizing the executive director to execute the 401(a) plan documents and to amend the 457(b) plan to permit Roth catch-up contributions was made, seconded and approved by voice vote.
The board did not specify an implementation date in the discussion recorded at the meeting; staff said they would return with finalized plan documents and administrative details, and Nationwide will continue to serve as plan administrator for record-keeping and IRS compliance.
What happens next: Staff will finalize and execute the plan documents consistent with the board authorization and report back to the board with implementation details and any required administrative steps.
