Columbus, Georgia

Agenda Item # _______

Columbus Consolidated Government

Council Meeting



December 18, 2001



Agenda Report # _________



TO: Mayor and Council



SUBJECT: Amendment to the 457 Deferred Compensation ?Plan Document?



INITIATED: Human Resources Department





Recommendation: Approve a resolution amending Resolution # 744-98 of the

Columbus Consolidated Government 457 Deferred Compensation ?Plan Document? as

enacted by the Economic Growth and Tax Relief and Reconciliation Act of 2001.

The new reforms are effective January 1, 2002.



Background: On October 3, 1995, resolution # 440-95 amended and restated the

?Prior Plan? that included changes adopted by the Small Business Job Protection

Act of 1996 (SBJTPA) and the Taxpayer Relief Act of 1997 (TRA?97). Those

changes included a) Trust Requirements, b) Irrevocable Elections, c) In-Service

Distributions, and d) Deferral Limitations. The new reforms are reflected below:



a) Elective Deferral and Catch-up Limits; Repeal of Coordination

b) Additional Contributions for Participants Age 50 and Over

c) Flexible 457 Distributions; Required Minimum Distributions

d) In-Service Transfers for purchase of Defined Benefit Plan Service Credits

e) Rollovers from Employer Sponsored Plans and IRAs

f) Qualified Domestic Relations Orders (QDRO) as required under 414(p)(11)



Analysis: There is no budgetary or financial impact on behalf of the Employer,

however the participant may experience additional fees for record keeping

services to accommodate multiple rollovers. The changes are favorable for the

participants, which allows for greater account growth.



Legal: The City Attorney has reviewed the changes to the ?Plan Document?. The

document is currently being revised..



Financial Considerations: None, other than as noted in the analysis.





Recommendation/Actions: Human Resources recommend the approval of the

resolution.