BOARD MEETING DATE: October 2, 2009
AGENDA NO. 30

PROPOSAL:

Annual Report on 457 Deferred Compensation Plan

SYNOPSIS:

AQMD sponsors an IRS-approved 457 deferred compensation program for its employees. The Annual Report addresses the Board’s responsibility for monitoring the activities of the Committee and ensuring the Committee carries out its duties and responsibilities under the Charter.

COMMITTEE:

Administrative, September 18, 2009, Recommended for Approval

RECOMMENDED ACTION:

Receive and file.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

AQMD sponsors and administers a 457 deferred compensation program for its employees. State law governs the fiduciary requirement for the operation and investment of 457 plans sponsored by governmental entities. The AQMD Governing Board serves a fiduciary role subject to the duties and obligations under Article XVI, Section 17 of the California Constitution.

To meet its fiduciary responsibilities, the Governing Board, at the time it established AQMD’s 457 Plan, also established a Deferred Compensation Committee to oversee the administration of the Plan. On May 2, 2008, the Board approved the Deferred Compensation Plan Committee Charter formalizing the fiduciary duties and responsibilities of the Committee.
 

Proposal
Attached is the second 457 Deferred Compensation Plan Annual Report to the Board. For the 2008-2009 period, the Committee adopted its Investment Policy Statement; reviewed the Plan funds, making several fund changes to consolidate the fund line-up and replace funds that no longer met the Committee’s investment policy criteria; and added a money market fund. The Committee also approved the replacement of the Plan Trustee, State Street Bank & Trust, with Reliance Trust Company. The attached report provides information as of June 30, 2009, regarding the Plan Assets/Demographics and Plan Performance.
 

Attachment (PDF, 938k)
Annual Report to the Board, South Coast Air Quality Management District 457 Deferred
Compensation Plan