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HomeMy WebLinkAboutResolutions - 2024.03.14 - 41053 AGENDA ITEM: Amendment to the Oakland County Employees Retirement System DEPARTMENT: Human Resources MEETING: Board of Commissioners DATE: Thursday, March 14, 2024 9:30 AM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2024-3908 _ 24-14 Motion to adopt the attached suggested resolution. ITEM CATEGORY SPONSORED BY Resolution Brendan Johnson INTRODUCTION AND BACKGROUND Requests the adoption of an amendment to the plan document to allow for in-service withdrawals for those employees who were terminated but then retroactively reinstated. POLICY ANALYSIS The current language in the 401a Plan, Section 5.10 states as follows: "Section 5.10. Voluntary Withdrawals A Participant who (a) has met the age and service requirements for Normal Retirement as provided in Section 5.1, and (b) ceases to be a Member in accordance with Section 2.4(a) may take an in- service withdrawal of all or a portion of his or her Vested Account. Any such withdrawal shall be made in accordance with procedures established by the Retirement Board." The proposed revision adds a paragraph to allow in-service withdrawals for situations in which a participant who has not yet met the age and service requirements for normal retirement was terminated and then reinstated per the collective bargaining grievance process. This amendment would supersede and replace the current language in Section 5.10. The Oakland County Employees' Retirement and Deferred Compensation Board approved this amendment on January 18, 2024. BUDGET AMENDMENT REQUIRED: No Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at 248.425.5572 or andrewsmb@oakgov.com or the department contact persons listed for additional information. CONTACT Carly Webster, Supervisor Human Resources Aaron Castle ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 3/14/2024 David Woodward, Board of Commissioners Approved - 3/14/2024 Hilarie Chambers, Executive's Office Approved - 3/14/2024 Lisa Brown, Clerk/Register of Deeds Final Approval - 3/15/2024 AGENDA DEADLINE: 03/14/2024 9:30 AM ATTACHMENTS None COMMITTEE TRACKING 2024-03-05 Legislative Affairs & Government Operations - Recommend to Board 2024-03-14 Full Board - Adopt Motioned by: Commissioner Philip Weipert Seconded by: Commissioner Linnie Taylor Yes: David Woodward, Penny Luebs, Karen Joliat, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, William Miller III, Yolanda Smith Charles, Charles Cavell, Ajay Raman, Ann Erickson Gault, Linnie Taylor (15) No: None (0) Abstain: None (0) Absent: Michael Spisz, Marcia Gershenson, Brendan Johnson, Michael Gingell (4) Passed March 14, 2024 RESOLUTION #2024-3908 _ 24-14 Sponsored By: Brendan Johnson Human Resources - Amendment to the Oakland County Employees Retirement System Chair and Members of the Board: WHEREAS the Oakland County Employees’ Retirement System (“Retirement System”) was established on January 1, 1946, under the authority of Section 12a of Act No. 156, Public Acts of 1851, as amended (MCL 46.12a); and WHEREAS as of January 1, 1994, the Retirement System was amended to include a 401(a) defined contribution retirement plan (the “401(a) Plan” or “DC Plan”) that provides benefits to eligible employees of the County of Oakland (“County”); and WHEREAS the DC Plan has subsequently been amended and restated, most recently pursuant to a restated resolution adopted by the County as of April 2018; and WHEREAS pursuant to Section 12.2 of the 401(a) Plan, the County has the authority to amend the DC Plan from time to time; and WHEREAS the County now desires to amend the 401(a) Plan to address the possibility of terminated employees being reinstated pursuant to a collectively bargained grievance process. NOW THEREFORE BE IT RESOLVED the 401(a) Plan is hereby amended effective as of January 1, 2024, as follows: 1. Section 5.10 – Voluntary Withdrawals is revised and restated in its entirety as follows: a. A Participant who (a) has met the age and service requirements for Normal Retirement as provided in Section 5.1, and (b) ceases to be a Member in accordance with Section 2.4(a), may take an in-service withdrawal of all or a portion of his or her Vested Account. Any such withdrawal shall be made in accordance with procedures established by the Retirement Board. b. In-service withdrawals shall also be permitted in situations where a Participant who (a) has not met the age and service requirements for Normal Retirement as provided in Section 5.1, and who (b) ceases to be a Member in accordance with Section 2.4(a), is subsequently retroactively reinstated to employment under the provisions of a collectively bargained grievance process. BE IT FURTHER RESOLVED that, except as herein provided, all other provisions of the 401(a) Plan shall remain unchanged and in full force and effect. Chair, the following Commissioners are sponsoring the foregoing Resolution: Brendan Johnson. Date: March 14, 2024 David Woodward, Commissioner Date: March 14, 2024 Hilarie Chambers, Deputy County Executive II Date: March 15, 2024 Lisa Brown, County Clerk / Register of Deeds COMMITTEE TRACKING 2024-03-05 Legislative Affairs & Government Operations - Recommend to Board 2024-03-14 Full Board - Adopt Motioned by Commissioner Philip Weipert seconded by Commissioner Linnie Taylor to adopt the attached Resolution: Amendment to the Oakland County Employees Retirement System. Yes: David Woodward, Penny Luebs, Karen Joliat, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, William Miller III, Yolanda Smith Charles, Charles Cavell, Ajay Raman, Ann Erickson Gault, Linnie Taylor (15) No: None (0) Abstain: None (0) Absent: Michael Spisz, Marcia Gershenson, Brendan Johnson, Michael Gingell (4) Passed ATTACHMENTS None STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on March 14, 2024, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the Circuit Court at Pontiac, Michigan on Thursday, March 14, 2024. Lisa Brown, Oakland County Clerk / Register of Deeds