TO: Board of Supervisors
FROM: Thomas Zeleny, Interim County Counsel
REPORT BY: Susan Altman, Deputy County Counsel
SUBJECT: A Resolution Amending Napa County’s 401(a) Retirement Savings Plan
RECOMMENDATION
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County Counsel and the Deferred Compensation Board of Control request adoption of a resolution amending Napa County’s 401(a) Retirement Savings Plan allowing Napa County employees who are members of Service Employee International, Local 1021 to be eligible for the 401(a) Plan.
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EXECUTIVE SUMMARY
The Napa County 401(a) Retirement Savings Plan (Plan) currently only allows for Napa County Non-Classified employees, Napa County Confidential employees, and Napa County Management employees, and some non-County Member agencies, to be Plan participants. Every year, the Board of Supervisors can take an action to match employees’ 457 deferred compensation contributions. Plan participants who are County employees receive the Board’s match. This Resolution would amend the Plan and would allow all Napa County Employees who are members of Service Employees International, Local 1021 (SEIU) to be eligible to participate in the Plan and therefore eligible to receive any approved Board of Supervisor’s 457 match. On November 17, 2022, the Napa County Deferred Compensation Board of Control approved an action recommending that the Board of Supervisors amend the Plan so that employees who are members of SEIU to be Plan Participants.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Where is it budgeted? |
General Fund |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
This allows the Board to fulfill its Agreement to provide matching made during bargaining. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
Funds will be budgeted in future fiscal years. |
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Consequences if not approved: |
The County would not fulfill an Agreement made during bargaining. |
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County Strategic Plan pillar addressed: |
Livable Economy for All |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.
BACKGROUND AND DISCUSSION
The Napa County 401(a) Retirement Savings Plan (Plan) currently only allows for Napa County Non-Classified employees, Napa County Confidential employees, and Napa County Management employees, as well as some non-County Member agencies to be Plan participants. Every year, the Board of Supervisors can take an action to match employees’ 457 deferred compensation contributions. Plan employee participants receive the Board’s match. This Resolution would amend the Plan and would allow all Napa County Employees who are members of Service Employees International, Local 1021 (SEIU) to be eligible to participate in the Plan and be eligible to receive any approved Board of Supervisor’s 457 match. In its negotiations with SEIU, the County agreed to take steps to make its members eligible for a six-hundred-dollar per year match. Giving employees the opportunity to receive a match encourages employees to save for retirement. Allowing participation in the 401(a) Plan, allows employees to receive an employer match without affecting the maximum contribution they can make to their 457(b) Plan. On November 17, 2022, the Napa County Deferred Compensation Board of Control approved an action recommending that the Board of Supervisors amend the Plan so that these employees can participate.