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Welcome to AWC’s online library of Legislative Bulletin and CityVoice news articles and other updates.

Published on Monday, March 2, 2015

Requiring cities to offer the state’s deferred compensation program

Last week, the Senate Ways & Means Committee passed a substitute version of SB 5435, which requires all cities and counties participating in state retirement systems to offer the state’s deferred compensation program. The substitute version specifies that employers who have a contract as of March 1, 2015, with a deferred compensation plan provider that limits the employer from offering another plan does not have to offer the state program until that contract expires. The substitute also allows employers with payroll and human resources systems able to automate a deferred compensation plan to consult with the Department of Retirement Systems about managing the contributions and limits within their own systems to ensure the most efficient administration of the plan. These changes address many of the concerns cities had with the proposal. However, AWC remains opposed to this unnecessary mandate. Cities already have the ability to offer the state program and see no need to mandate it, especially if it may add a new administrative burden.

Categories: Personnel
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