City of Oak Creek
Common Council Report
Item No.: 13
Recommendation: That the Common Council accept Resolution No. 10316-120203, including the City of Oak Creek under the State of Wisconsin Deferred Compensation Plan.
Background: Each year the city evaluates the benefits offered to employees and considers alternative benefits and new providers. A representative of the Wisconsin Deferred Compensation Program approached the City in regard to offering a deferred compensation plan. The Wisconsin Deferred Compensation plan is one of many employee benefit programs administered by the Department of Employee Trust Funds, a reputable administrator of the City’s employee benefits for life insurance and pension.
The City currently offers employees the opportunity to voluntarily enroll in deferred compensation plans with four providers. A deferred compensation program allows employees to put part of their earnings into a pre-tax retirement plan, showing their financial responsibility by planning for retirement. As part of our annual offering of voluntary benefits to employees, a representative the State of Wisconsin Deferred Compensation Plan attended our “Employee Benefit Fair” and received written submissions by three employees expressing interest in participating in the State of Wisconsin Deferred Compensation Plan. There is no minimum number of applicants required for a group plan to be established.
Fiscal Impact: There would be no cost to the city in regard to the actual funds transferred from employee payroll into the employees’ plans, however it would have an impact on the time spent for payroll and accounts payable in establishing/maintaining the payroll deductions and the payments to the plan administrator, as is done with the current plan providers.
Respectfully submitted,
Robert L. Kufrin
City Administrator
Fiscal Review by:
Beverly A. Buretta, CMC
City Clerk