Why a Public Agency Might Want to Add a 401(a) Plan

Why a Public Agency Might Want to Add a 401(a) Plan

The vast majority of public agencies already maintain a 457(b), or eligible deferred compensation plan. A much smaller number also maintains one or more 401(a) plans in addition. This post discusses some of the reasons a public agency might want to add a 401(a) plan...

Is Your Social Security Replacement Plan Up to Snuff?

Is Your Social Security Replacement Plan Up to Snuff?

As we previously explained, most public agencies are not automatically subject to Social Security. They have a choice between voluntarily participating in Social Security pursuant to a section 218 agreement, or they can exempt some or all of their payroll by providing...

How Many 457(b) Plans Do You Need?

How Many 457(b) Plans Do You Need?

Many cities and special districts establish and maintain more 457(b) plans than they really need. We routinely see public agencies with as many as two, three or four 457(b) plans. How and why does this happen? And, are there any advantages or disadvantages to doing...

Chapter 22:  Social Security Replacement Plans – An Introduction

Chapter 22: Social Security Replacement Plans – An Introduction

For many American workers, the Old-Age, Survivors, and Disability Insurance (OASDI) program serves as an important component of their retirement savings. This is not necessarily the case for the millions of workers whose State, local government and public agency...