AGENDA MEMORANDUM

Meeting Date:              September 28, 2009

From:                           Jakki Cunningham Perry

Subject:                       Resolution amending the agreement with the ICMA Retirement Corporation for an Amendment to the 401 Governmental Money Purchase Plan & Trust

Staff Recommendation:

Staff recommends approving the attached resolution amending the agreement with ICMA Retirement Corporation.

Analysis:

Continuously decreasing revenue streams have significantly impacted the City’s ability to continue many of the benefits and services that have been made available in the past.

The City proposes to reduce the contribution from six percent (6%) to two percent (2%) into the 401 Governmental Money Purchase Plan & Trust for Management Employees, Public Safety Employees (Police Department positions not covered by PBA) and the General Employees.  To do this, a Resolution must be adopted amending the Plan accordingly.

Options:

1.  Approve the Resolution reducing the contribution from six percent (6%) to two percent (2%) into the 401 Governmental Money Purchase Plan & Trust for Management Employees, Public Safety Employees (Police Department positions not covered by PBA) and the General Employees; or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

A savings of $724,422 by reducing the 6% ICMA 401(a) contribution for participating employees to 2%, (subject to collective bargaining for police).

Submission Date and Time:    9/25/2009 2:36 PM____

Department:       Human Resources__ Prepared by:    Jakki Perry, HR Dir                      Attachments:         Yes____   No ______ Advertised:   ____Not Required ______ Dates:   _________________________ Attorney Review :       Yes___  No ____ _______________________________ Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. __________________                                    Deputy C.M. __________ ________                                           Submitted by: City Manager ___________________

Account No. _________________ Project No. ___________________ WF No. ______________________ Budget  ______________________ Available _____________________

RESOLUTION NO._______________

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO AMEND THE AGREEMENT WITH ICMA RETIREMENT CORPORATION FOR THE 401 GOVERNMENTAL MONEY PURCHASE PLAN & TRUST REDUCING THE CITY'S CONTRIBUTION TO THE 401 (a) PLAN FROM SIX PERCENT(6%) TO TWO PERCENT (2%); AND PROVIDING AND EFFECTIVE DATE.

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

THAT, the Employer has established a money purchase retirement plan (the Plan) in the form of:

The ICMA Retirement Corporation 401 Governmental Money Purchase Plan & Trust.

THAT, the Employer wishes to modify the existing money purchase retirement plan by changing the defined contribution from six percent (6%) to two (2%) for Management Employees, Public Safety Employees (Police Department positions not covered by PBA) and the General Employees and;

THAT, the Mayor and City Clerk are hereby authorized to sign an agreement between the City of Leesburg, Florida, and ICMA Retirement Corporation, Whose address is 777 North Capitol Street NE, Washington, DC 20002-4240, for a 401 Governmental Money Purchase Plan & Trust.

THAT this resolution shall become effective October 1, 2009.

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the   28    day of    September   , 2009.

                                                                            __________________________

                                                                             Mayor

ATTEST:

__________________________

City Clerk