HomeMy WebLinkAboutAGENDA BACKUP 11-01-90
.
Centrb. Contra Costa Sanitar) District
BOARD OF DIRECTORS
PAGE 1 OF
POSITION PAPER
BOARD MEETING OF
November 1, 1990
NO.
11. BUDGET AND FINANCE a.
DATE
October 23, 1990
~~t%IVE THE DEFERRED COMPENSATION PLAN
ADVISORY COMMITTEE ANNUAL REPORT FOR 1989-1990
TYPE OF ACTION
RECEIVE ANNUAL
REPORT
SUBMITTED BY
INITIATING DEPT./DIV.
Administrative/Finance and Accounting
ISSUE: The District's Deferred Compensation Plan Advisory Committee (Committee)
respectfully submits its annual report to the Board of Directors and Plan participants.
BACKGROUND: The Board of Directors approved the establishment of the Committee in
January 1982. The scope of activities of the Committee includes submission of an annual report
to the Board of Directors and Plan participants. The annual report of the Committee for 1989-
1990 is submitted herewith.
RECOMMENDATION: Receive the annual report of the Deferred Compensation Plan
Advisory Committee for 1989-1990.
REVIEWED AND RECOMMENDED FOR BOARD ACTION
G~
ROGER J DOLAN
1302A-9/85
WNF
INITIATING DEPT.lDIV.
~~...- ""'__.J.
Central Contra Costa Sanitary District
DEFERRED COMPENSATION PLAN ADVISORY COMMITTEE ANNUAL REPORT
JULY 1989 - JUNE 1990
The Deferred Compensation Plan Advisory Committee was established by the Board of Directors
to facilitate the internal administration of the District's Deferred Compensation Plan. The scope
of the Committee's activities encompass the following:
o
Establish internal District administrative procedures within the provisions of the Deferred
Compensation Plan document.
o
Educate participants regarding the Plan provIsions by issuing a handbook which
summarizes the Deferred Compensation Plan, and responding to queries from participants.
o
Review accountability by the Program Administrators, Hartford Life Insurance Company
(Hartford) and Great Western Bank (Great Western), and respond to participants' queries
regarding accuracy or propriety of account balances.
o
Review participants' requests for emergency withdrawal of funds.
o
Review investment performance of the Deferred Compensation Plan on an annual basis.
Committee Accomolishments
The following activities were completed by the Committee during July 1989 through June 1990.
o
Internal District Administrative Procedures - A program to award former Committee
members a plaque in appreciation for their terms of service as departmental
representatives on the Committee was established. An awards ceremony was held at the
District on June 19, 1990 to present plaques to ten former Committee representatives.
A plaque will be awarded to current and future Committee representatives upon
completion of their two-year terms.
o
Education of Participants - Plan participants were informed of a new law which requires
that the current $100,000 limit of federal insurance on each participant's savings account
in deferred compensation plans be changed after January 29, 1992; after this date, the
$100,000 coverage will only be provided for the aggregate savings accounts in the Plan,
and not up to $100,000 per participant. The Committee prepared a letter urging
continuation of the $100,000 of coverage per participant, which will be circulated to
participants for signature and sent to the California Senator and Congresswoman who sit
on the decision-making committees of Congress.
Representatives of Hartford and Great Western have been available on-site on a
designated day each month to assist participants by providing information and responding
to questions.
o
Review Accountability by Program Administrators - Monthly confirmation statements and
quarterly account statements are submitted to the District by Hartford and Great Western.
Quarterly account statements are distributed to all participants. Notification by the
District of account errors has been satisfactorily resolved by the Program Administrators.
o
Review Requests for Emergency Withdrawals of Funds - One emergency withdrawal
request was reviewed by the Committee and recommended for approval by the Board of
Directors.
o
Review Investment Performance - A summary which presents the investment performance
of the Hartford and Great Western programs for the calendar year 1989, and the first six
months of 1990, is provided on Attachment I.
Current Committee Activities
o
The Deferred Compensation Plan handbook was in the process of being updated by the
Committee as of June 30, 1990 to incorporate the changes in the new Great Western
contract. A new contract was negotiated to succeed the initial three-year contract which
ended on April 30, 1989. The updated handbook was distributed to Plan participants on
September 28, 1990.
o
The District's Deferred Compensation Plan document is undergoing a careful review by
the Committee to ensure conformance with the current governing tax codes and to
improve accuracy and completeness.
o
An information sheet is being developed by the Committee for the benefit of participants
separating from the District which will provide information regarding distribution
requirements, payout options, and tax considerations.
Conclusion
During the period July 1989 through June 1990, the Committee has addressed all of the
activities included in its scope of responsibilities. This has been achieved through the
conscientious efforts of all of the Committee members.
The performance of Hartford and Great Western in administering the Deferred Compensation Plan
during the 1989-1990 report period is considered to be satisfactory.
As shown in the final two columns of Attachment I, the Hartford stock account's gain for the
calendar year 1989 of 24.8 percent underperformed the general market indices, as measured by
the Dow Jones Industrials and Standard & Poors 500, which registered gains of 32.1 percent
and 31 .6 percent, respectively. The Hartford bond account underperformed the general market
index in 1989, as measured by the Shearson Lehman Bond index. For the first six months of
1990, the Hartford stock account outperformed the Standard & Poors 500, but underperformed
the Dow Jones Industrials; the Hartford bond account underperformed the Shearson Lehman
Bond index.
The Great Western stock funds, Investment Company of America, Growth Fund of America and
Freedom Fund, slightly underperformed the general market indices for calendar year 1989; the
Bond Fund of America underperformed the market index. For the first six months of 1990, the
three stock funds outperformed the Standard & Poors 500, but underperformed the Dow Jones
Industrials; the bond fund slightly outperformed the Shearson Lehman Bond index.
Committee Members:
~~~-~~.
Walter Funasaki, Finance Officer
diJ-
Helen Baumgartner, Ad istrative Secretary
Administrative Department
Bart Brandenburg, As ciate Engineer
Engineering Department
2-~
-
Tom Godsey, Assistant Engineer
Collection System Operations Department
~~
Bob Boase, Shift Supervisor
Plant Operations Department
ADS/Position Paper #1 /DEFCOMP.PP
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