Department
Finance
Requested Action (Identify appropriate Action or Motion, purpose, cost, timeframe, etc.)
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Request approval of a Resolution by the Fulton County Board of Commissioners to amend the Fulton County Defined Contribution Plan to allow certain in-service distributions and authorizing the Chairman of the Board of Commissioners or his Designee to execute the amendment. (APPROVED UPON ADOPTION OF THE CONSENT AGENDA)
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Requirement for Board Action (Cite specific Board policy, statute or code requirement)
In accordance with Board policy all Defined Contribution Plan Amendments must be approved by the Board of Commissioners.
Strategic Priority Area related to this item (If yes, note strategic priority area below)
Open and Responsible Government
Commission Districts Affected
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Is this a purchasing item?
No
Summary & Background:
Fulton County maintains the Fulton County Defined Contribution Plan which was last amended and restated effective as of January 1, 2013. The County wishes to amend the Plan to allow emergency personal expense in-service distributions as permitted by the SECURE 2.0 Act of 2022 and to make other miscellaneous changes under the Plan.
The County does hereby amend the Plan, effective as of January 1, 2027, by deleting Section 3.1(f) in its entirety and substituting therefore the following effective as of July 1, 2024:
“(f) A judge of the State Court of Fulton County shall participate in the Plan only if such individual files an election to participate within sixty (60) days of July 1, 2024 if such individual is in office on July 1, 2024 or, with respect to a judge of the State Court of Fulton County who first takes office after July 1, 2024, within sixty (60) days of first taking office. A judge of the State Court of Fulton County shall participate in the Plan only with respect to Compensation paid by the County on or after July 1, 2024, to the extent such Compensation is not treated as “earnable compensation” for purposes of the Georgia Judicial Retirement System. Notwithstanding the foregoing limitation on Compensation, and regardless of whether such judge has Compensation available for contributions under the Plan, a judge of the State Court of Fulton County who has elected to participate in the Plan pursuant to this Section 3.1(f) shall continue to be an Active Participant and accrue Years of Service under the Plan.”
By adding the following new Section 6.14 to the Plan:
“6.14 Emergency Personal Expense Distributions.
(a) A Participant may request to take an emergency personal expense distribution of up to $1,000 from the vested portion of his or her Account. Emergency personal expense distributions are intended for purposes of meeting unforeseeable or immediate financial needs relating to necessary personal or family emergency expenses. Any such request must be made in accordance with such rules and conditions as the Administrative Committee may from time to time adopt. The Administrative Committee may rely on the Participant’s written self-certification that the Participant has an unforeseeable or immediate financial need related to necessary personal or family emergency expenses.
(b) A Participant is limited to one emergency personal expense distribution from the Plan per calendar year. For the purpose of the $1,000 limitation and the calendar year frequency limit, all emergency personal expense distributions from all plans of the Employer must be aggregated and cannot exceed the amount or frequency limitation set forth above. A Participant who receives an emergency personal expense distribution under this Section may recontribute the amount of the emergency personal expense distribution to the Plan in the form of a Rollover Contribution at any time during the three-year period beginning the day following receipt of the emergency personable expense distribution, provided the Participant is otherwise eligible to make Rollover Contributions to the Plan.
(c) After a Participant takes an emergency personal expense distribution under this Section, the Participant is restricted from taking a subsequent emergency personal expense distribution from the Plan during the immediately following three calendar years unless (i) such previous distribution is fully repaid to the Plan pursuant to this Section, or (ii) Voluntary Employee Contributions to the Plan subsequent to such previous emergency personal expense distribution is at least equal to the amount of such previous distribution which has not been so repaid.
(d) This Section 6.14 is intended to be interpreted and administered in accordance with, and subject to the limitations of Code Section 72(t)(2)(I), IRS Notice 2024-55 and any subsequent guidance, rules or regulations.”
Scope of Work: This recommended change will allow emergency personal expense in-service distributions as permitted by the SECURE 2.0 Act of 2022 and to make other miscellaneous changes under the Plan. This recommended change will also authorize the Chairman of the Board of Commissioners or his/her designee to execute amendments.
Community Impact: None
Department Recommendation: The Finance Department recommends approval of the resolution to allow emergency personal expense in-service distributions to and update the Plan for certain required law changes in accordance with State and Federal laws and authorizing the Chairman of the Board of Commissioners or his/her designee to execute amendments.
Project Implications: None
Community Issues/Concerns: None
Department Issues/Concerns: None
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