How can your employees supplement your police or non-uniformed pension plans?
Uniformed and non-uniformed municipal employees may elect to save money on a pre-tax basis through code section 457 deferred compensation plans. The Small Business Jobs Protection Act of 2002 made these plans resemble corporate 401(k) plans in deferral amounts and rollover ability.
Municipalities who have had their 457 plans housed in annuity contracts or the ICMA platform now have a fiduciary requirement to investigate all available alternatives. Most 401(k) investment platforms are now available for 457 plan assets. There are services available offering continual evaluation of the investment options for the plan participants, and a method to identify and replace underperforming funds.
This is a fiduciary duty and responsibility that should not be taken lightly.
Code section 457 plans require employee education so there is proper integration between the employer sponsored pension plan and the employee's salary deferral program. These plans also need to be properly integrated with DROP plans.
FRS Capital Management has taken it upon itself to become educated in the design, administration, investment management and participant education of 457 plans and there integration with both police and non-uniformed pension plans.