TO: Mayor and Commissioners
FROM: Marie F. Kalka, Finance Director
THROUGH: George Gretsas, City Manager
DATE: February 4, 2020
Title
APPROVAL OF UNFORESEEABLE EMERGENCY WITHDRAWAL ASSESSMENT AUTHORIZATION FROM INTERNATIONAL CITY MANAGEMENT ASSOCIATION (ICMA) 457 PLAN
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Recommended Action:
Recommendation
Motion to Approve the Unforeseeable Emergency Withdrawal Assessment Authorization with ICMA- RC authorizing them to process emergency withdrawal requests on behalf of participants without requiring Employer approval.
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Background:
Previously, ICMA-RC provided recommendations as to whether the Employee’s application for an Unforeseeable Emergency Withdrawal situation satisfied the IRS Guidelines to receive funds from their ICMA 457 account. This recommendation would then be given to an authorized signer of the City such as, the Finance Director or Assistant City Manager for final approval. However, ICMA-RC has changed their policy requiring that a Unforeseeable Emergency Withdrawal Assessment Authorization to remain on file before providing recommendations. In addition, ICMA now will complete the process for an emergency withdrawal without requiring the Employer’s (City) approval. This item was previously approved by City Commission; however, due to the ICMA requirements of utilizing their format, this item is being brought before the City Commission again for approval.
City Attorney Review:
Approved as to form and legal sufficiency.
Funding Source/Financial Impact:
No funding required.
Timing of Request:
The timing of this request is of high importance in order to process ICMA-RC 457 emergency withdrawal requests.