Agenda Item 6A
April 4, 2017
Robert H. Dnnnmer, Senior Legislative Attorney
Expedited Bill 2-17, Employees' Retirement System - Retirement Savings
Plan - Employee Rights and Benefits - Amendments
Government Operations and Fiscal Policy Committee recommendation (3,;.0):
the Bill as introduced.
Expedited Bill 2-17, Employees' Retirement System - Retirement Savings Plan
Employee Rights and Benefits - Amendments, sponsored by Lead Sponsor Council President at
the request of the County Executive, was introduced on February 14. A public hearing was held
on February 28 and a Government, Operations and Fiscal Policy Committee worksession was held
on March 16.
Bill 2-17 would amend the Employees' Retirement System (ERS) and the Retirement
Savings Plan (RSP) to remain tax qualified under the Internal Revenue Code.
The County submitted the ERS and the RSP to the Internal Revenue Service to receive a
detennination letter that each County retirement plan remains tax qualified. The IRS has requested
several technical changes that require amendments to specific provisions of the ERS and the RSP
related to the Internal Revenue Code. A copy of the IRS Detennination Letter for each plan is at
The IRS requested the County to amend the plans to:
specify that a non-spousal beneficiary may receive a rollover distribution (if
otherwise pennitted) (ERS and RSP);
include Internal Revenue Code provisions relating to certain rights provided to
employees on military leave (ERS and RSP);
include a definition of "eligible rollover distribution" (ERS);
provide a definition of "limitation year" for purposes of complying with Internal
Revenue Code Section 415 (RSP); and
specify that defined contribution plans maintained by the County will be aggregated
for purposes of complying with Internal Revenue Code Section 415 (RSP).
Expedited Bill 2-17 would make these changes.