MFP Item 2
Management and Fiscal Policy Committee
Drummer, Senior Legislative Attorney
Worksession: Expedited Bill 54-10, Retirement - Investments
Expedited Bill 54-10, Retirement - Investments, sponsored by the Council President at
the request of the County Executive, was introduced on October 26, 2010. A public hearing is
tentatively scheduled for November 23 at I :30 p.m.
Bill 54-10 would:
(a) allow investments other than mutual and commingled funds in the Retirement
Savings Plan (RSP);
(b) update investment provisions in the RSP and Deferred Compensation Plan (DCP)
to comply with current procedures;
(c) require automatic distribution of terminated RSP and Guaranteed Retirement
Income Plan (GRIP) participant account balances of$1,000 or less; and
(d) allow participants to rollover any eligible retirement plan account into the RSP.
What is the fiscal and economic impact of the Bill?
OMB estimated that the automatic distribution of RSP and GRIP accounts for
participants who have left County service will save approximately $22 per account each year for
a total of $8800 in FYIl. See ©I6. The Bill would have no other significant fiscal or economic
2. Should RSP participants be permitted to purchase investments other than mutual or
RSP participants are required to direct their own investments. Current law restricts these
investments to mutual funds or other commingled funds. The Board of Investment Trustees
(BIT) selects mutual funds and other commingled funds that participants can choose from. The