AGENDA DATE: 4/6/2022
TITLE: Commonwealth of Virginia 457 Deferred Compensation Plan
SUBJECT/PROPOSAL/REQUEST: Adoption of Commonwealth of Virginia 457 Deferred Compensation Plan
ITEM TYPE: Consent Action Item
STAFF CONTACT(S): Richardson, Birch, Kamptner, Herrick, Coltrane, Cloutier, Andrake
PRESENTER (S): N/A
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: As a benefit to employees, the County offers a voluntary deferred compensation program by which employees can contribute portions of their earnings into 457(b) retirement savings accounts. Unlike the mandatory Virginia Retirement System (VRS) defined benefit program, to which both the County and the employee are required to contribute, the deferred compensation program is funded solely by employees' voluntary pre-tax contributions. The 457(b) retirement savings accounts held by County employees are similar to 401(k) accounts available to private sector employees.
The County first established a deferred compensation program in 1983. The 1983 ordinance also created a Deferred Compensation Committee appointed by the County Executive. The ordinance granted the Committee the power to do all things by way of supervision, administration, and implementation of a plan of deferred compensation, as described in County Code ? 2-1108 -- ? 2-1110. After years as a work group, the Committee has recently been formally appointed and is reviewing the County's options.
STRATEGIC PLAN: Quality Government Operations - Ensure County government's capacity to provide high quality service that achieves community priorities
DISCUSSION: When the County's deferred compensation program was first established in 1983, such programs were in their infancy. At that time, it made sense for the County to pool its resources with other localities in offering this benefit. However, over time, the County's deferred compensation program has grown to over $51 million in employee retirement contributions and...
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