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Council adopts resolution to restate city retirement plan, opts for IRS self-correction
Summary
The council approved Resolution 2026-11 to update the municipal retirement-plan document (last revised in 2017) and authorized participation in the IRS self-correction program, which staff said would cost under $2,000 versus over $5,000 to refile with the IRS.
Caro City Council voted to adopt Resolution 2026-11 on July 20, approving a restated retirement-plan document to bring the city's plan into compliance with current IRS rules.
City clerk (speaker 7) reviewed the history: the city's retirement plan had not been updated since 2017, and legal counsel from Miller Canfield recommended either using the IRS self-correction program (staff estimated the city cost at under $2,000) or filing new documents with the IRS (the clerk cited startup fees above $5,000). "If we did the self correction program, we would be covered under IRS sanctions so we wouldn't get hit with a penalty," the clerk said.
Committee member (speaker 4) made the motion to approve Resolution 2026-11, which council supported and approved on a roll-call recorded by the clerk. The clerk confirmed the restatement does not change participants' benefit entitlements and affects only legal language to reflect law changes since 2017. The council also directed that the city manager continue working with Miller Canfield on final signatures and fee approvals as needed.
