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9. B. 4.
457(b) Plan Amendment and Alerus Service Provider Agreement
Kelli Scott, Administrator/Controller, Administration
Resolved, the Board of Commissioners does hereby provide its support of the 457(b) Plan Amendment signed by the Administrator/Controller, as well as the Alerus Service Provider Agreement to be processed by the the HR Director.
The Board approved the Revised 457(b) Plan Document at the December 17, 2020 board meeting with an effective date of January 1, 2021 and a consolidation of the multiple plans planned for March 2021. Unfortunately we were notified that the merger could not occur until May 2021 due to a backlog at one of the carriers. Per outside counsel recommendation, the Administrator/Controller signed the attached Plan Document Amendment that simply extends the merger dates, while allowing the January 1, 2021 effective date to still remain intact as already approved by the board.
Similarly, attached for board support is the Alerus Service Provider Agreement to be handled by the HR Director. The Agreement allows for consolidation of the 457 Plan Assets with the existing 401(k) plan for advisory fee purposes only. This benefits Calhoun County participants a few ways:
• The advisory fees are equal regardless of which plan the employee is participating.
• The 457 plan participants receive better pricing due to the assets of the 401k plan being included
• We have lowered the marginal tier from 0.15% to 0.10%
There is no cost to the County, as fees are already set-up to be paid out of the plan assets, and all the other noted items in the Agreement are consistent with what is already provided by Alerus and Midwest for administration of the existing 401(k) plan.
There is no fiscal impact to the County on either of the items presented, but fees/costs may be lower for participants as a result of the asset consolidation.
1st Amendment to 457 Plan Document
Alerus Service Provider Agreement
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