Page 135 - AugDefComp

HUMAN RESOURCES DEPARTMENT
Inter-Departmental Correspondence

DATE: August 27, 2020

TO: Deferred Compensation Advisory Committee

FROM: Jay Castellano, Employee Benefits

SUBJECT: 2020-21 BUDGET

RECOMMENDATION

Approve the 2020-21 budget for the Deferred Compensation Trust Fund and the
associated workplan priorities for the Deferred Compensation Program.

BACKGROUND

The Deferred Compensation Trust Fund captures 1) revenues from the provider’s
(MassMutual) administrative reimbursements to the County and 2) administrative
expenses for the Deferred Compensation program, including those of the Deferred
Compensation Advisory Committee (DCAC).

The assets of the Deferred Compensation Trust Fund are maintained and accounted for
separate from the County’s General Fund, from the Employee Benefits Trust Fund and
from all other County funds as the fund’s assets are derived from participant-paid fees
and can only be used for the benefit of plan participants. There are no direct County
contributions into this fund. While the County contributes to some participants’
accounts (for example, limited term employees’ 401(a) accounts), those account
balances are held outside of this fund, and this fund’s revenues are based only on fees
charged to those account balances. This fund’s assets are considered to be plan assets—
managed by the Deferred Compensation Advisory Committee on behalf of the plan
participants.

DISCUSSION

2020-21 BUDGET

2020-21 Beginning Fund Balance—The 2020-21 recommended beginning fund balance
of $257,468 is based on the 2019-20 year-end fund balance as of June 30, 2020. Since
this memo is being considered after the 2019-20 year-end close, this figure is based on
the actual fund balance, not a year-end projection.

2020-21 Revenues—The $103,849 revenue estimate is the estimated administrative
reimbursement from MassMutual to the County. The formula for the estimate is assets