Magazine article Nation's Cities Weekly

RC Assists Oakland County, MI in Employee Education Effort

Magazine article Nation's Cities Weekly

RC Assists Oakland County, MI in Employee Education Effort

Article excerpt

(OAKLAND COUNTY, MI)--Employees of Oakland County. MI are taking advantage of a unique opportunity to decide whether their employer's defined benefit plan or defined contribution plan best fits their individual retirement strategy.

Oakland County chose the ICMA Retirement Corporation (RC), a Washington, DC based specialist in public sector retirement administration, as the sole provider for its new defined contribution plan. Known as the Oakland Performance Retirement System, this plan is an IRS Section 401(a) money-purchase plan.

RC is providing administrative services, a comprehensive participant education program, and 17 investment fund options valued daily Six of these options are portfolios with an SEC-registered mutual fund from Fidelity, Putnam, Gabelli or Lindner as its underlying investment.

Approximately 3,100 Oakland County employees hired prior to July 1, 1994, have until the end of 1995 to decide whether they want to transfer to the defined contribution plan. If an employee chooses to participate, the value of his or her accumulated benefit from the defined benefit plan is transferred to the defined contribution plan.

For participating employees, Oakland County also annually contributes an amount equal to 6 percent of their salary, subject to a seven-year graded vesting schedule (effective from the first day of employment.) In addition, employees can contribute 0 or 3 percent of their salary, which Oakland County matches.

A central focus of the program is the comprehensive education package RC developed to assist participants in making their decision. …

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