Title
AN ORDINANCE REPEALING ARTICLE XV, CHAPTER 2, OF THE CITY CODE RELATING TO THE DEFERRED COMPENSATION PLAN COMMISSION.
Body
CITY PROPOSAL:
The city of Duluth does ordain:
Section 1. That Article XV, Chapter 2, of the Duluth City Code, relating to the deferred compensation plan commission established in 1980 is hereby repealed in its entirety.
Section 2. That this ordinance shall take effect 30 days after its passage and publication.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this ordinance is to eliminate the Deferred Compensation Plan Commission. The City currently offers hundreds of different pre-tax and post-tax deferred compensation choices through four carriers: Minnesota State Deferred Compensation Plan, Nationwide, MassMutual, and ICMA Retirement Corporation. The City does not pay for these services. Instead, employees who choose to invest pay administrative fees directly to those carriers. Because the City and employees can utilize free electronic funds transfer (EFT), changing investment options and carriers has become much easier than it was when the Deferred Compensation Plan Commission was created in 1980, and does not require approval or paperwork to be completed with the City Payroll Office.