Agenda Item 8
April 27, 2012
Robert H. Drummer, Senior Legislative Attorney
Expedited Bill 8-12, Retirement Savings Plan - Amendments
Government Operations and Fiscal Policy Committee recommendation (3-0): approve the
Bill as introduced.
Expedited Bill 8-12, Retirement Savings Plan - Amendments, sponsored by the Council
President at the request of the County Executive, was introduced on March 6, 2012. A public
hearing was held on March 27 and a Government Operations and Fiscal Policy Committee
worksession was held on Apri116.
Bill 8-12 would amend the Retirement Savings Plan to make changes requested by the
Internal Revenue Service in order to obtain a favorable determination letter that the Plan remains
tax qualified. The IRS requested the following changes: (a) delete outdated references to
Internal Revenue Code Section 415, which limits contributions and benefits; (b) insert a
provision relating to the definition of compensation in Internal Revenue Code Section 415; and
(c) provide the definition of an "eligible retirement plan" for rollover purposes rather than
incorporate by reference. The Bill would make these tecJ:mical changes to the Code provisions
establishing the Retirement Savings Plan as requested by the IRS during the review process.
The only witness at the March 27 public hearing, Linda Herman, Executive Director for
the Board ofInvestment Trustees, supported the Bill on behalf of the Executive (©14).
Linda Herman, Executive Director for the Board of Investment Trustees, represented the
Executive Branch. The Committee reviewed the Bill and recommended approval as introduced