300-57
ALTERNATIVE RETIREMENT PROGRAM

Department: HUMAN RESOURCES & RISK MANAGEMENT

Effective Date:    9/1/97

Supersedes:    1/1/94

Staff Contact:    B. Nelson Glode

Approved by:    Jesse Tanner

1.0 PURPOSE:

To establish policy for an alternative retirement plan for those employees hired into regular positions who are receiving benefits under another Washington State sponsored retirement system and are excluded from establishing membership in either the PERS or LEOFF Plan.

2.0 ORGANIZATIONS AFFECTED:

All departments/divisions.

3.0 REFERENCES:

Title 41 RCW

4.0 POLICY:

It is the policy of the City of Renton to establish an alternative retirement plan through deferred compensation plan contributions.

5.0 DEFINITIONS:

5.1    A regular employee is one who occupies an authorized and budgeted exempt or non-exempt position on a full-time, part-time or limited term basis.

5.2    The employee must meet the minimum hours of work required to establish eligibility in the appropriate state sponsored retirement program.

5.3    The employee should otherwise be eligible for membership in a state sponsored retirement program offered by the City of Renton, but is ineligible due to receipt of benefits from another separate state sponsored retirement program. The employee must not otherwise be excluded for retirement benefits due to contractual agreement with the City.

5.4    The deferred compensation plan is an IRS approved method for deferring federal income taxes on contributions until retirement.

5.4.1    The City of Renton offers a choice of deferred compensation plans: The Hartford Life Insurance Company, and ICMA Retirement Corporation (a retirement trust plan).

6.0 PROCEDURES:

6.1    The employee shall enroll in the deferred compensation plan of their choice by completing appropriate enrollment forms.

6.2    Employee contributions shall be made by payroll deduction in an amount equivalent to participation in the appropriate state approved PERS or LEOFF Plan II. The City will also contribute at a rate equivalent to the Plan II employer’s share.