TCC approves restated defined contribution plan

The Toccoa City Commission met on Monday for its regular scheduled meeting; during which, the Commission adopted a resolution and agreement concerning a restated defined contribution plan.

According to City Manager Billy Morse, the agreement was requested by the Georgia Municipal Association.

Morse says City Attorney John Dickerson had reviewed the agreement and found it to be in order.

The resolution and agreement will ensure GMA members continue to receive tax-favored treatment.

The resolution and adoption agreement for the 401(a) Defined Contribution Plan also includes these four changes:

Specifies that the minimum hour requirement, if applicable, only applies to common law employees of the employer and does not apply to elected or appointed officials.

Eliminates the payroll period section to provide flexibility to employers who modify payroll periods.

Eliminates separate vesting sections for matching and non-matching employer contributions. One vesting section now applies to all types of employer contributions.

Removes references to the GMEBS Defined Benefit Plan.

Vice Mayor Jeanette Jamieson says the resolution impacts only one city employee.

Commissioner Gail Fry seconded Jamieson’s motion approving the resolution and agreement.

The motion was approved 4-0 with Commissioner Terry Carter being absent.