Your non-uniformed plan is either a defined benefit or a defined contribution plan. How was the plan design decided? Who made that decision? When was the plan design last reviewed?
While there is no specific legislation governing non-uniformed plans, most municipalities sponsor one. The type, defined benefit or defined contribution, is a decision made at the local level based on an analysis of the employee population and the funding levels of the local municipality. It can and should be reviewed periodically.
State aid will also support non-uniformed plans based on the number of plan participants, beginning three years after the plan is in effect. However, it should be clearly understood that a Code Section 457 Deferred Compensation plan is not a pension plan eligible for state aid funding.
Management of a non-uniformed plan has all of the same management and administrative requirements as a police pension plan. You just have more options in the plan design.
The non-uniformed plan's investment advisor should serve the following functions:
- Assist with the plan design.
- Select the plan's investment managers.
- Set the interest actuarial assumption.
- Set the asset allocation model for a defined benefit plan.
- Provide investment guidance for participants in a defined contribution plan.
- Function as a liaison with all professionals providing plan services such as an actuary, third party administrator, record keeper, and solicitor.
- Develop an Investment Policy Statement for the plan.
- Provide investment and tax education to the plan participants.
FRS Capital Management has been providing these services to non-uniformed plans since 1984.
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