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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Ann Green-Barton, Chief People Officer |
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PRESENTER(S): |
Ann Green-Barton, Chief People Officer |
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JD Tazoi, Director of Total Rewards |
TITLE:
title
R2026-06-04 - Resolution Approving and Authorizing an Amendment to the UTA 457 Deferred Compensation Plan Document
end
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Approve and authorize the Chief People Officer to execute an amendment to the 457 Deferred Compensation Plan document to incorporate and comply with applicable changes enacted under the SECURE Act of 2019 (SECURE 1.0) and SECURE 2.0 Act of 2022 and adopt additional optional benefit plan provisions.
BACKGROUND:
Congress enacted the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 and the SECURE 2.0 Act of 2022 to expand retirement savings opportunities, improve retirement plan participation, and modernize retirement plan administration. The SECURE laws introduced numerous changes affecting qualified retirement plans, including 457 Deferred Compensation Plans. As a result of the SECURE Act updates, governmental plans are required to review the plan document to ensure compliance with the applicable federal requirements. In addition to the SECURE Act related updates, the proposed amendment also includes adoption of optional plan provisions elected by the Agency.
DISCUSSION:
The proposed amendment updates the Plan document to include applicable SECURE Act provisions and adopt optional plan provisions that provide additional flexibility and benefits to participants.
The key changes included in the Plan document amendment are as follows:
• Elimination of the First Date of the Month rule for 457 deferral changes.
• Expanded and enhanced catch up contribution opportunities, including a higher catch up contribution amount for employees ages 60 to 63.
• Increased flexibility regarding in-service distributions, including changes to the required minimum distribution (RMD) age at 59.5 and allowing in-service distributions of rollovers at any time.
• Increased employer match for the Executive Director of 5% of annual earnings.
ALTERNATIVES:
If the amendment to the Plan document is not approved, the current 457 Deferred Compensation Plan document will remain in effect.
FISCAL IMPACT:
The fiscal impact incurred from the increased employer match benefit for the Executive Director is budgeted in the current approved operating budget.
ATTACHMENTS:
Resolution R2026-06-04 including exhibits A and B