Agenda Item 3
Robert H. Drummer, Senior Legislative Attorney
Expedited Bill 2-17, Employees' Retirement System - Retirement
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.
The County submitted the ERS and the RSP to the Internal Revenue Service to receive a
determination letter that each County retirement plan remains
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:
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);
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
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.