BOARD MEETING DATE: May 2, 2008
AGENDA NO. 13

RECOMMENDED ACTIONS:

Adopt the attached resolution approving the Deferred Compensation Plan Committee Charter.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

AQMD sponsors and administers a deferred compensation program for its employees, as covered under section 457 of the federal Internal Revenue Code. State law governs the fiduciary requirement for the operation and investment of 457 plans sponsored by governmental entities. Subsections (a), (b) and (c) of Article XVI, Section 17, of the California Constitution contain the provisions governing the fiduciary duties for the administration of public pension and retirement systems. Since 457 plans are deferred compensation plans for state and local governments, a 457 plan satisfies the definition of public pension and retirement funds for purposes of the California Constitution. The AQMD Governing Board serves a fiduciary role subject to the duties and obligations under Article XVI, Section 17.

To meet its fiduciary responsibilities, the Board, at the time it established AQMD’s 457 Plan also established a Deferred Compensation Committee to oversee the administration of the Plan. The current committee is composed of the District Counsel, Chief Financial Officer, Assistant Deputy Executive Officer/Administration and Human Resources and a Human Resources Manager. In January 2008, the Board selected Benefit Funding Services Group (BFSG) to provide consulting services to the Deferred Compensation Plan Committee. One of the first tasks of the consultants was to draft the Committee Charter and Investment Policy.
 

Proposal

Attached is the Charter and adopting Resolution formalizing the Deferred Compensation Plan Committee. The Charter provides that the Board is authorized to designate a committee to function as the named fiduciary of the Plan and to carry out the functions of the Plan administrator.
 

Attachments (exe 66kb)

Resolution
Deferred Compensation Plan Committee Charter