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New Castle County pension trustees authorize outside counsel to review IRS determination letter
Summary
At its May 20 meeting the New Castle County Government Employees’ Pension Program Board of Trustees voted unanimously to engage outside counsel to review whether an IRS determination letter is needed or should be extended after amendments to the County 2011 plan.
The New Castle County Government Employees’ Pension Program Board of Trustees voted May 20 to engage its current outside legal counsel to review an outstanding IRS determination letter related to amendments to the County 2011 plan and to amend or extend that letter if the review shows it is needed. Mary Jacobson, First Assistant County Attorney, told trustees the board has authority under county code to hire outside counsel for pension-specific fiduciary and compliance matters and said the request is intended to "tie up and close that loop" on the outstanding compliance question.
The motion to retain the firm for that limited purpose was made by Trustee Daryl Brown and seconded by David Del Grande, the board’s chief financial officer. Trustees adopted the motion unanimously.
Why it matters: An IRS determination letter can affect the tax treatment of plan distributions and the plan’s compliance status; Jacobson said prior amendments to the County 2011 plan created ambiguity the board wants to resolve. The board did not announce a budget amount for the engagement; details about scope and fees were not specified at the meeting and will be determined after counsel’s review.
Next steps: The outside counsel will review the County 2011 plan and the prior IRS correspondence and will advise whether an amendment, extension or other filing is warranted. The board expects counsel’s findings before deciding any further action.
