Agenda Item 10E
Drummer, Senior Legisla .
Josh Hamlin, Legislative
Expedited Bill 23-14, Retireme t Plans
Government Operations and Fiscal Policy Committee recommendation
Expedited Bill 23-14 as introduced.
Expedited Bill 23-14, Retirement Plans - DefInitions Administration - Amendments,
sponsored by the Council President at the request of the County Executive, was introduced on
May 6. A public hearing was held on June 10 and a Government Operations and Fiscal Policy
Committee worksession was held on June 12.
The County submitted the Employees' Retirement System (ERS) to the Internal Revenue
Service (IRS) in order to receive a determination letter that the ERS remains tax qualifIed. The
Bill would delete outdated references to Internal Revenue Code §415 and defIne "direct rollover"
and "'eligible retirement plan" as requested by the IRS. In addition, the Bill would make other
amendments to clarify administrative practices in areas where the Montgomery County Code
does not provide guidance. Bill 23-14 would amend the retirement plans to:
provide that sick leave is used for vesting purposes in the Employees' Retirement
provide that months of service are included for vesting purposes
Retirement Income Plan and the Retirement Savings Plan;
permit the Chief Administrative Officer to authorize a designee to receive a
clarify that a participant continues to participate in the same retirement plan after
changing employment from the County directly to a participating agency or from a
participating agency directly to the County;
clarify that a part-time employee hired before 1994 who has not participated in
either the Retirement Savings Plan or the Guaranteed Retirement Income Plan may
elect to participate in either plan;