TO: Mayor Richard C. Irvin
FROM: Christopher A. Minick, City Financial Officer/City Treasurer
DATE: March 3, 2022
SUBJECT:
A Resolution Authorizing the Execution of an Amendment of the Section 457 Deferred Compensation Plans offered by the City of Aurora.
PURPOSE:
To obtain the City Council's approval of the attached resolution that would authorize an amendment of the Section 457 deferred compensation plans offered by the City through the providers listed below.
BACKGROUND:
Section 457 of the Internal Revenue Code permits local governments to offer tax-deferred retirement savings plans to their employees. The City of Aurora currently offers four active plans. Those plans are offered through the following vendors:
1. Illinois Public Pension Fund Association (IPPFA).
2. VOYA Financial (formerly known as ING Life Insurance and Annuity).
3. Nationwide Retirement Solutions.
4. LPL Financial (formerly known as Waddell & Reed Financial Services).
In 2003, pursuant to Resolution No. R03-487, the city established its Deferred Compensation Administration Committee. The committee is comprised of:
Chief Financial Officer/City Treasurer (chair)
Director of Human Resources
Corporation Counsel
The committee is charged with evaluating new deferred compensation plans that have been proposed for offering to city employees. In addition, the committee assesses proposed changes to deferred compensation plans already offered to employees.
DISCUSSION:
Section 457 allows for a variety of features and an employer is not required to offer all features as allowed in the IRS Code. Over time as different plans have been adopted and amended, inconsistencies have arisen in the differing plans that the City offers. Staff is recommending a plan amendment that will allow for additional flexibility that could result in fu...
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