City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Stephanie Van Steyn, Director of Human Resources |
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Date: |
December 17, 2024 |
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Subject: |
Authorizeg the Director of Human Resources to Amend the Mission Square 401(a) Defined Contribution Retirement Plan for the Manteca Public Safety Management Association (MPSMA) to update certain Optional Provisions; and approve a side letter agreement to the memorandum of understanding between the City of Manteca and MPSMA unit to memorialize these updates. |
Recommendation:
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Adopt a resolution authorizing the Director of Human Resources to amend the Mission Square 401(a) Defined Contribution Retirement Plan for the Manteca Public Safety Management Association (MPSMA) to update certain Optional Provisions; and approve a side letter agreement to the memorandum of understanding between the City of Manteca and MPSMA unit to memorialize these updates.
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Background:
On December 5, 2023, City Council approved a Memorandum of Understanding (MOU) and 401(a) Plan Document for the Manteca Public Safety Management Association (MPSMA). Discrepancies with the plan document and administration of the plan were later discovered. Subsequently, Mission Square, the 401(a) plan administrator, Human Resources and MPSMA representatives met to discuss corrections that were needed to update the MPSMA 401(a) plan adoption agreement.
Changes to the plan include but are not limited to a mandatory 1% member contribution at the time of MPSMA membership eligibility; and eligible sick and vacation leave accrual contributions will be mandatorily deferred into a member’s plan upon separation up to maximum IRS calendar year limits, versus cash payment.
To memorialize these updates, a side letter agreement to the memorandum of understanding between the City of Manteca and MPSMA is also recommended and attached.
Fiscal Impact:
There is no immediate or direct financial impact to updating the 401(a) plan document. There is no City contribution towards the MPSMA 401(a) plan, there is only a mandatory MPSMA member contribution.
Documents Attached:
1. Attachment 1 - Resolution
2. Attachment 2 - Mission Square 401(a) Plan Adoption Agreement - MPSMA
3. Attachment 3 - MPSMA MOU Side Letter Agreement