HomeMy WebLinkAbout07. Information requested on ICMA 457 PTS Fees 70
Central Contra Costa Sanitary District
March 28, 2017
TO: FINANCE COMMITTEE
VIA: ROGER S. BAILEY, GENERAL MANAGER
PHILIP R. LEIBER, DIRECTOR OF FINANCE & ADMINISTRATION
FROM: THEA VASSALLO, FINANCE MANAGER
SUBJECT: INFORMATION REQUESTED ON ICMA 457 PTS FEES
At the February 21 , 2017 Finance Committee meeting, a request was made for
additional information on the fees charged to participants in the 457 PTS plan (covering
part time/seasonal employees, and Board Members).
According to Kim Hammond, the District's Retirement Plan Specialist, ICMA's policy is
to price plans so they are paying for themselves and not being subsidized by the other
plans offered through the employer. PTS plans are priced differently, depending on the
nature of the account (e.g. size of account balances, number of cash-outs, etc.).
Central San's 457 PTS plan is characterized by low average account balances and
numerous cash outs. If the PTS plan were included in the calculation to determine the
revenue requirement for the 457 and 401 plans, the fees in the 457 and 401 plans
would increase, leading to a situation where, in essence, the participants in those plans
would be subsidizing the PTS plan.
TV:sIc