HomeMy WebLinkAboutContracts & Agreements_18-2016_CCv0001.pdf REDLANDS ASSOCIATION OF DEPARTMENT DIRECTORS
ACCUMULATED BENEFIT PROGRAM
The City Council approved a Memorandum of Understanding between the City of Redlands and
the Redlands Association of Department Directors on April 21, 2015, which allows members to
participate in a qualified 401(a) program. On January 20, 2016, the members of the Association
approved the Unit's participation in the Accumulated Benefit Conversion Program offered by
Nationwide Financial.
The Association agreed that the program will apply to all members of the Unit. The City shall
fund the accounts on behalf of each member in the amount of One Thousand One Hundred
Twenty Five Dollars ($1125) per employee, plus two percent (2%) of salary. Upon retirement,
Unit members shall deposit the cash value of vacation leave, incentive payouts, floating
holidays, and executive leave to the program in the maximum amount allowable. The annual
maximum contribution is currently$53,000.
Moreover, Department Directors born before January 1, 1970, will deposit 25% of their annual
leave sales to the 401 (a) program. Directors born on, or after, January 1, 1970, and on, or prior
to December 31, 1976, will deposit 15%of their annual leave sales to the 401 (a) program.
Those directors born after December 31, 1976, will not deposit any of their annual leave sale to
the 401 (a) program.
CITY OF REDLANDS
Paul W. Foster, Mayor ate
ATTEST:
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Sam Irwin, C4 Clerk
REDLANDS ASSOCIATION OF DEPARTMENT DIRECTORS
Mark Garcia, Pre dent