Agenda Item 3
February 28,2017
Public Hearing
MEMORANDUM
February 24,2017
TO:
FROM:
County Council
Robert H. Drummer, Senior Legislative Attorney
~
Public Hearing:
Expedited Bill 2-17, Employees' Retirement System - Retirement
SUBJECT:
Savings Plan - Employee Rights and Benefits - Amendments
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 Government Operations and Fiscal Policy Committee
worksession is tentatively scheduled for March 16 at 9:30 a.m.
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.
Background
The County submitted the ERS and the RSP to the Internal Revenue Service to receive a
determination 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 Determination Letter for each plan is at © 14-17.
The IRS requested the County to amend the plans to:
(a)
specify that a non-spousal beneficiary may receive a rollover distribution (if otherwise
permitted) (ERS and RSP);
(b) include Internal Revenue Code provisions relating to certain rights provided to employees
on military leave (ERS and RSP);
(c)
include a definition of "eligible rollover distribution" (ERS);
(d) provide a definition of "limitation year" for purposes of complying with Internal Revenue
Code Section 415 (RSP); and
(e)
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. The County Attorney's Office explained to
Council staff that these are not substantive changes, and none of these amendments would change any
employee's existing benefits or rights under either plan.
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This packet contains:
Expedited Bill 2-17
Legislative Request Report
Executive's Transmittal Memo
Fiscal and Economic Impact Statement
IRS Determination Letters
Circle #
1
8
10
11
14
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2
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Expedited Bill No. ---:-_2==---'1--':-7---=-_ _-----.,.
Concerning:
Employees' Retirement
System - Retirement Savings Plan ­
Employee Rights and Benefits ­
Amendments
Revised:February10,2017 Draft No._1_
Introduced:
February 14, 2017
Expires:
August 14, 2018
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: --'N..,:.:o::..:.n=e'--_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President at the Request of the County Executive
AN EXPEDITED ACT
to:
(l)
amend the rights and benefits for certain employees under the Employees'
Retirement System to remain tax qualified under the Internal Revenue Code; and
(2)
amend the rights and benefits for certain employees under the Retirement Savings
Plan to remain tax qualified under the Internal Revenue Code; and
(3)
generally amend the law regarding the County employee retirement plans.
By amending
Montgomery County Code
Chapter 33, Personnel and Human Resources
Sections 33-36, 33-42, 33-44, 33-45, 33-114, 33-118, and 33-120
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deleted from existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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Expedited Bill No. 2-17
1
Sec.
1.
Sections 33-36, 33-42, 33-44, 33-45, 33-114, 33-118 and 33-120 are
amended as follows:
33-36. Establishment.
2
3
4
5
*
*
*
(d) Uniformed Services Employment and Reemployment Rights Act.
Notwithstanding any provision of any plan, the County must provide
rights, contributions, benefits and service credit for qualified military
service as required by Section 414(u) of the Internal Revenue Code.1
including subsection 414(u){l2).
33-42. Amount of pension at normal retirement date or early retirement date.
6
7
8
9
10
11
12
13
14
15
*
*
*
*
*
*
(g)
Maximum annual contribution to elected officials' plan.
(3)
In
this subsection (g), only:
(A) for purposes of applying Section 415 of the Internal
Revenue Code, "compensation" has the same meaning as
provided in Treasury Regulation Section 1.415-2(d)(1),
including amounts contributed at the election of the
participant that are not includible in the gross income of
the participant, under Sections 402(g)(3), 125, 457, and
132(f)(4) of the Internal Revenue Code.:. Effective for
limitation years after December 31, 2008, must include
amounts required to be included pursuant to Section
414(u)(12) of the Internal Revenue Code; and
16
17
18
19
20
21
22
23
24
25
26
27
*
*
*
(h)
Maximum annual benefit.
Despite any other provision governing the
retirement system, the annual benefit of a member must not exceed the
o
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Expedited Bill No. 2-17
28
29
30
31
32
33
34
35
36
37
38
limits of Internal Revenue Code Section 415 that apply to the plan. The
Chief Administrative Officer must freeze or reduce a member's annual
benefit to comply with this subsection. Effective for limitation years
after December 31, 2008, amounts required to be included under
Section 414(u)(12) of the Internal Revenue Code must be included in
compensation for purposes of Section 415 of the Internal Revenue
Code.
*
*
(q)
*
*
*
*
33-44. Pension payment options and cost-of-living adjustments.
Direct rollover distributions.
A member or beneficiary may elect, in
39
any manner prescribed by the Chief Administrative Officer at any time,
to have any portion of eligible rollover distribution paid directly to an
eligible retirement plan specified by the member in a direct rollover. A
member may not elect a direct rollover if the eligible rollover
distribution is less than $200.00. As used in this subsection:
(1)
direct rollover
means a payment from the retirement system to
40
41
42
43
44
45
46
the eligible retirement plan specified by the member; [and]
(2)
eligible retirement plan means:
47
48
49
50
51
(A)
an individual retirement account described
Revenue Code Section 408( a);
III
Internal
(B)
an individual retirement annuity described in Internal
Revenue Code Section 408(b) (other than an endowment
contract);
52
53
54
(C)
(D)
a qualified trust;
an annuity plan described
Section 403(a);
III
Internal Revenue Code
cB
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Expedited Bill No. 2-17
55
56
57
58
(E)
an eligible deferred compensation plan described
Internal
Revenue
Code Section 457(b)
which
III
IS
maintained by an eligible employer described in Internal
Revenue Code Section 457( e)(1 )(A); or
(F)
59
an annuity described in Internal Revenue Code Section
403(b)~
60
61
62
ill
eligible rollover distribution
means any distribution of all or any
portion of the retirement benefit; except:
(A}
63
64
any distribution which is one of
~
series of substantially
equal periodic payments (not less frequently than
annually) made:
65
66
67
ill
for the life (or life expectancy) of the employee or
the joint lives (or joint life expectancies) of the
employee
and
the
employee's
designated
68
69
beneficiary; or
70
71
72
73
(ill
for
~
specified period of
lQ
years or more; or
m2
any distribution to the extent such distribution is required
under Section 40l(a)(9) of the Internal Revenue Code, as
amended; and
74
75
ill
beneficiary
includes
~
non-spouse beneficiary. A non-spouse
~
beneficiary may make
direct rollover only to an inherited
76
77
78
individual retirement account or annuity described in Sections
408(a) or 408(b) of the Internal Revenue Code that is established
on behalf of the non-spouse beneficiary. Such rollover must be
made in
~
79
80
81
manner consistent with Section 402(c)(1l) of the
Internal Revenue Code and any other applicable guidance.
*
tV
*
*
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Expedited Bill No. 2-17
82
33-45. Vested benefits and withdrawal of contributions.
83
84
85
*
(c)
Vested benefits.
(2)
*
*
For purposes of this subsection, vesting will be in accordance
with Section 401(a)(37) of the Internal Revenue Code. Effective
January
L
2007, the beneficiary of
~
86
87
88
member on
~
leave of
absence to perfonn military service with reemployment rights
described in Section 414(u) ofthe Internal Revenue Code, where
the member cannot return to employment on account of his or
her death, must be entitled to any additional benefits (other than
benefit accruals relating to the period of qualified militmy
service) that would be provided under the employees' retirement
system had the member died as an active employee, in
accordance with Section 401(a)(37) of the Internal Revenue
Code. This provision applies to the elected officials' plan, the
guaranteed retirement income plan, and the optional and
integrated plans.
89
90
91
92
93
94
95
96
97
98
99
100
*
33-114.
Establishment.
*
*
101
102
103
104
105
*
(c)
*
*
Unifonned Services Employment and Reemployment Rights Act.
Notwithstanding any provision of a plan, the County must provide
rights, contributions, benefits and service credit for qualified military
service according to Section 414(u) of the Internal Revenue Code,.
including subsection 414(u)Cl2).
106
107
108
33-118. Maximum annual contribution.
(a)
Contribution limitations.
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Expedited Bill No. 2-17
109
110
*
(3)
*
*
In this Section, for purposes of applying Section 415 of the
Internal Revenue Code, "compensation" has the same meaning
as provided in Treasury Regulation Section 1.415-2(d)(1),
including amounts contributed at the election of the participant
that are not includible in the gross income of the participant,
under Sections 402(g)(3), 125, 457, and (effective January 1,
2001) 132(£)(4) of the Internal Revenue
Code~
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
Effective for
limitation years after December
lL.
2008, compensation must
include amounts required to be included by Section 414(u)(12)
of the Internal Revenue Code.
*
@
*
*
For purposes of this Section, limitation year means calendar year.
For purposes of applying this Section, all defined contribution plans
maintained by the County must be aggregated.
W
33-120.
Distribution of Benefit.
*
(c)
*
*
*
*
Death benefits.
*
(2)
Vesting.
If a participant dies before the participant's separation
from County service, all amounts credited to the participant's
County contributions account are 100% vested regardless of the
participant's years of credited service. For purposes of this
subsection, vesting must be in accordance with Section
401(a)C37) of the Internal Revenue Code. Effective January
2007, the beneficiary of
~
participant on
~
L
leave of absence to
perform military service with reemployment rights described in
c3
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Expedited Bill No. 2-17
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
Section 4l4(u) of the Internal Revenue Code, where the
participant cannot return to employment on account of his or her
death, must be entitled to any additional benefits that would be
provided under the retirement savings plan had the participant
died as an active employee, in accordance with Section
40 1(a)C37) of the Internal Revenue Code.
*
(g)
*
*
Direct rollover distributions.
Notwithstanding any provision of this
Division that would otherwise limit a participant's election under this
Section, a participant or beneficiary may elect in any manner prescribed
by the Chief Administrative Officer at any time to have any portion of
an eligible rollover distribution paid directly to an eligible retirement
plan specified by the participant in a direct rollover. As used in this
subsection:
*
ill
*
*
~
For purposes of this subsection, beneficiary includes
non­
spouse beneficiary. A non-spouse beneficiary may make
~
direct
rollover only to an inherited individual retirement account or
annuity described in Sections 408(a) or 408(b) of the Internal
Revenue Code that is established on behalf of the non-spouse
beneficiary. Such rollover shall be made in
~
manner consistent
with Section 402(c)(11) of the Internal Revenue Code and any
other applicable guidance.
Sec. 2.
Effective Date.
The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on the date on which it
becomes law.
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LEGISLATIVE REQUEST REPORT
Expedited Bill 2-17
Employees' Retirement System
-
Retirement Savings Plan
-
Employee Rights and Benefits
- Amendments
DESCRIPTION:
The County submitted the Employees' Retirement System (ERS) and
the Retirement Savings Plan (RSP) to the IRS to receIve a
determination letter that both plans remain
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.
The IRS requested the following changes: (a) specify that a non­
spousal beneficiary may receive a rollover distribution (if otherWise
permitted) (ERS and RSP);
(b)
include Internal Revenue Code
provisions relating to certain rights provided to employees on
military leave (ERS and RSP); (c) included a definition of "eligible
rollover distribution" (ERS); (d) provide a definition of "limitation
year" for purposes of complying with Internal Revenue Code
Section 415 (RSP); and (e) specify that defined contribution plans
maintained by the County will be aggregated for purposes of
complying with Internal Revenue Code Section 415 (RSP).
PROBLEM:
GOALS AND
OBJECTIVES:
To amend the ERS and RSP as requested by the IRS to receive
favorable IRS determination letters.
COORDINATION:
Montgomery County Employee Retirement Plans
FISCAL IMP ACT:
Office of Management and Budget
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
Department ofFinance
N/A
N/A
SOURCE OF
INFORMATION:
Linda Herman, Montgomery County Employee Retirement Plans
Amy Moskowitz, Office of the County Attorney
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APPLICATION
WITHIN
MUNICIPALITIES:
N/A
PENALTIES:
NI
A
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2
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ROCKVllLE,
~D
MEMORANDUM
January 26, 2017
TO:
Roger Berliner, President
County Council
~
FROM:
lsiah
Leggett,
County
Executive.-k{~~/_--
SUBJECT:
Expedited Legislation
to
Amend Chapter 33, Personnel and Human Resources.
I
am
attaching for the Council's consideration a bill that would amend the
County's retirement
law
to comply with the request received from the Internal Revenue Service
(IRS)
to make technical amendments to the Employees' Retirement System (ERS) and the
Retirement Savings Plan (RSP) so that the two plans remain
tax
qualified and the County
receives favorable determination letters from the
IRS.
The IRS
has
requested the following changes:
• specify that a non-spousal beneficiary may receive a rollover distribution (ERS
andRSP);
• include Internal Revenue Code provisions relating
to
certain rights provided to
employees on military leave (ERS and R8P);
• 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).
Thank:
you for your consideration of this matter.
Attachments: Determination letter from the IRS
Proposed Legislation
c:
Linda Herman, Executive Director, Employee Retirement Plans
Jennifer Hughes, Director, Office of Management and Budget
Shawn
Stoke~
Director, Office of Human Resources
Alexandre Espinosa, Director, Department of Finance
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Fiscal Impact Statement
Expedited Council Bill XX-!7 Retirement - Employees' Retirement System and
Retirement Savings Plan - Amendments
1. Legislative Summary.
This bill would amend the Employees' Retirement System, Retirement Savings Plan. and
the Guaranteed Retirement Income Plan to remain tax qualified under the Internal
Revenue Code; address
Internal
Revenue Code provisions relating to certain rights
provided
to
employees on
military
leave;
and
generally amend the law regarding the
employees' retirement system.
2.
An
estimate of changes in County revenues and expenditures regardless of whether
the revenues or expenditures are assumed. in the recommended or approved budget.
Includes source of infonnation, assumptions, and methodologies used.
The proposed legislation is primarily a technical amendment
in
nature. There is one
component
to
the legislation that clarifies the vesting of benefits for plan participants who
pass away while on active military leave. CUlTently. the County
has
6 employees on
military
leave; any change to their vesting status because of their death while on active
military service is expected
to
be de minimus. There are no other changes to revenues or
expenditures related to the legislation.
. 3. Revenue and expenditure estimates coverfng at least the next 6
fiscal
years.
The propOsed legislation has no revenue or expenditure impact.
4.
An
actuarial analysis through the entire amortization period for each bill that would
affect retiree pension or group insurance costs.
Not applicable.
5.
An
estimate of expenditures related to County's information technology (IT)
systems, including Enterprise Resource Planning (ERP) systems.
Not applicable.
6. Later actions that may affect future revenue and expenditures
if
the bill authorizes
future spending.
Not applicable.
7.
An
estimate of the staff time needed
to
implement the bill.
No additional
staff
time will
be
required to implement the bill.
8.
An
explanation of how the addition of new staff responsibilities would affect other
duties.
No additional staifresponsibilities would be added.
9.
An
estimate of costs when an additional appropriation
is
needed.
Not applicable.
10. A dC$cription of any variable that could affect revenue and cost estimates.
@)
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·r·-~
; .
~
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~
...
,'. '.
..
'
.~"':
Dramatically increased military leave among County plan participants, where the plan
participants cannot retum
to
employment on account ofhis or her death, could result in
benefit changes that go beyond
de
minimus.
11.
Ran~es
of revenue or expenditures that are uncertain or difficult to project.
Not applicable.
12.
If
a bill
is
likely to have no fiscal impact, why that
is
the case.
The number of County plan participants on
military
leave is very small, and the other
changes in the proposed legislation are primarily teclmical
in
nature.
13. Other fiscal impacts or comments.
1he
letter from the
IRS
made the positive detennination of
tax
qualified status
conditioned on the County making the amendments included
in
this bill. Failure
to
make
the amendments would likely result
in
penalties levied
against
the
County by the
IRS
or
the loss of
tax
qualified
status.
This
would result in cost
impacts
for the County
and
its
employees.
14. The following contributed to and conculTed with this analysis:
.Corey Orlosky, Office
of
Management and
Budget
Linda Hennan, Executive Director, Montgomery County Employee Retirement Plans
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Economic Impact Statement
Bill ##-17, Employees' Retirement System, Guaranteed Retirement lneome Plan, and Retirement
Savings Plan - Amendments
Background:
The proposed legislation provides
technical
amendments requested by the Internal Revenue Service
(IRS), U.S. Department ofthe Treasury,
to
the Employees' Retirement System (ERS), the Guaranteed
Retirement Income Plan (GRIP),
and
the Retirement Savings Plan (RSP)
so
that the plans remain
tax
qualified and
the
County receives favorable determination letters from the IRS.
The IRS requested the following changes:
• Specify
that
a non-spousal beneficiary may receive a rollover distribution (ERS. GRIP, and RSP);
• Include Internal Revenue Code provisions relating to
certain
rights provided to emplo}'ees on
military leave (ERS. GRIP, and RSP);
• Include a defmition of "eligible rollover distribution"
(ERS);
• Provide a definition of "limitation year" for purposes ofcomplying
with
Internal Revenue Code
Section 415 (GRIP and RSP); and
• Specify
that
defined contribution plans m,aintained
by
the County will be aggregated for purposes
of complying
with
Internal Revenue Code Section 415 (GRIP and RSP).
1.
The sources oC information, assumptions, and methodologies used.
Not applicable
2. A description
oC
any variable
that could affect the economic
impact
estimates.
Not applicable
3. The BiD's positive or
negative
effect,
if any
on employment, spending, savings, investment,
iRcomes,
and
property values in
the
County.
Not applicable
4.
If
a
nin
is
likely
to
have no economic
impact,
why
is
that
the
case?
The proposed legislation provides
technical
corrections
to
the Employees' Retirement System and the
Retirement Savings Plan, and
it
is administrative
in
nature.
5. The following contribnted to or eoncurred
with
this
analysis:
David Platt and Robert Hagedoorn,
Finance;
Lin~
Hennan, Montgomery County Employees Retirement Plans.
Alexandre A. Espinosa. Director
Department of Finance
Page I of 1
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INTERNAL REVENUE SERVICE
P.
O. BOX
2508
CINCINNATI, OH 45201
Date:
DEPARTMENT OF THE TREASURY
I
Employer Identification Number:
52-6000980
DLN:
.'
I'
i
OCT 13
2016
MONTGOMERY COUNTY
MARYLAND
101 MONROE ST 15TH FLR
ROCKVILLE,
MD
20850
17007006074026
Person to Contact:
RUTH; CHEN
ID#
95048
Contact Telephone. Number:
(626) 92.7-1423
Plan Name:
MONTGOMERY COUNTY EMPLOYEES'
RETIREMENT SYSTEM.
Plan Number.: 001
Dear. Applicant:
Based on the information you provided, we are issuing this favorable
determination letter
fo~
your plan listed above. However, our favorable
determination only applies' to the ,status of your plan under. the Internal
Revenue Code.and is not a determination on the effect of otp.er federal or local
statutes. To use this letter a.s proof. of the plan's status, you must keep this
letter, the applicati9n fOrms, and all' correspondence with .us about your
application.'
' .
.
YoU:rdeterminatf.6ri. letter
d~e~
nqt appl}r to 'any
qualifi~at.io~'
changes. that,
become effective; any guidance issued, or any statutes enacted after the dates
specified in the Cumulative List of Changes in Plan Requirements (the
Cwnulative List) for the cycle you submitted your application \lI7.der, unless the
new item was identified in the CUmulative Li'st.
"
"
.
Your plan's cont;inuedqualifi,cation :in its, present form will"depend, on its
effect
in
operation (Section 1.401-1 (b)
(3)
of the income Tax Regu1aiions).
may review the status of the plan
in
operation periodically .
We
..
You can find more information on favorable determination letters in Publication
794, Favorable Determination Letter, including:
The significance and scope of reliance on this letter,
The effect of any elective determination request in your
a~plication
materials,
.
The reporting requirements for qualified plans, and
EXamples of the effect of a plan's operation on its qualified status.
You can get a copy of Publication 794 by visiting our website at
www.irs.gov/formspubs or by calling 1-800-TAX-FORM (1-800-829-3676) to request
a copy.
This letter considered the 2014 cumulative L:ist of Changes in Plan
Qualification Requirements.
We made this determination on the condition that you adopt the
propo~ed
Letter 5274
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~-~I-'"
-2­
MONTGOMERY COUNTY MARYLAND
amendments you submitted in your letter dated 9-28-16, on or
before the date the Income Tax Regulations provide under Section 401(b) of the
Internal Revenue Code.
We based this determination letter solely on your claim that the plan meets the
requirements of a governmental plan under Section 414(d) of the Internal
Revenue Code.
This determination letter applies to the plan and related documents you
submitted with the
~pplication
you
f~led
during
the
remedial amendment cycle
ending 1-31-16.
This determination letter expresses no opiOion as to the, federal tax
consequences of the replacement, or proposed replacement, of any joint and
survivor; single
lif~
or other annuity being paid with a lump sum payment or
other accelerated form of distribution.
If you submitted a Form 2848, Power of Attorney and Declaration of
Representative, or Form 8821, Tax Information Authorization, with your
application and asked us to send your authorized representative or appointee
copies of written communications, we will send a copy of this letter to him or
her.
If you have any questions, you can contact the person listed at the top of this
letter.
Sincerely,
Karen D. Truss
Director, EP Rulings & Agreements
Letter 5274
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i::- .:-::-: .....
.. -!
INTERNAL REVENUE SERVICE
P.O ..
BOX
2508
CINCINNATI, OH 45201
Date:
DEPARTMENT OF THE TREASURY
OCT 132016
Employer Identification Number:
52-6000980
DLN:
MONTGOMERY
COUNTY
MARYLAND
101 MONROE ST
ROCKVILLE,
MD
20850
17007006074016
Person to Contact:
ID# 95048
RUTH CHEN
contact Telephone Number:
(626) 927-1423
Plan Name:
MONTGOMERY COUNTY RETIREMENT
SAVINGS PLAN
Plan Number: 002
Dear Applicant:
Based on the information you provided, we are issuing this favorable
determination letter for your plan listed above. However, our favorable
determination only applies to the status of your plan under the Internal
Revenue Code and is not a determination on the effect of other federal or local
statutes. To use this letter as proof of the plan's status, you must keep this
letter, the application forms, and all correspondence with us about your
application.'
.
.
.
Your determination
lette~
does'
n~t
apply. to anyqual'ification changes that
become effective, any gUidance issued, or any statutes enacted after the dates
specified in the Cumulative List of Changes in Plan Requirements (the
Cumulative List). for thei cycle you
~ubmi~ted
your application under, Unless the
new item was identified in the cUmulative List. .
..
.
Your plan's continued qualification in its. present form will depend on its
effect in operation (Section 1.401-1 (b) (3) of the Income Tax Regulations).
may review the status of the plan in operation periodically.
We
You can find more information on favorable determination letters
in
Publication
794, Favorable Determination Letter, including:
The significance and scope of reliance on this
l~tter,
The effect of any elective determination request in your application
materials,
The reporting requirements for qualified plans,
and
Examples of the effect of a plan's operation on its qualified status.
You can get a copy of Publication 794 by visiting our website at
www.irs.gov!formspubs or by calling 1-800-TAX-FORM (1-800-829-3676) to request
a copy.
This letter considered the 2014 Cumulative List of ·Changes in Plan
Qualification Requirements.
we made this determination on the condition that you adopt the proposed
Letter 5274
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·'···1 ,-­
.
.
-2­
MONTGOMERY COUNTY MARYLAND
amendments you submitted
in
your letter dated 10-11-16, on or
before the date the Income Tax Regulations provide under section 401(b) of the
Internal Revenue Code.
We based this determination letter solely on your claim that the plan meets the
requirements of a governmental plan under Section 414{d) of the Internal
Revenue Code.
This determination letter applies to the plan and related documents you
submitted with the application you filed during the remedial amendment cycle
ending 1-31-16.
If you submitted a Form 2848, Power of Attorney and Declaration of
Representative, or Form 8821,
Tax
Information Authorization, with your
application and asked us to send your authorized representative or appointee
copies of written communications, we will send a copy of this letter to him or
her.
If you have any questions, you can contact the person listed at
the
top of this
letter.
Sincerely,
~~_£d~
Director, EP Rulings
&
Agreements
Letter 5274