2023-02-22 CC Packet - REVISED - Laserfiche WebLink

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I ntroduction WELCOME TO THE DEFINED CONTRIBUTION PLAN The Defined Contribution Plan (DCP) is a tax -qualified retirement savings plan under Chapter 401(a) of the Internal Revenue Code and must comply with Internal Revenue Service requirements. As a tax -qualified plan, federal and state taxes on DCP contributions and investment earnings are deferred until you withdraw the funds. ARE YOU ELIGIBLE? You are eligible to participate in DCP if you are an elected local government official, physician, city manager, ambu- lance service personnel, rescue squad or other positions listed under the Minnesota Statutes Chapter 353D. Participation is optional for qualifying members. DCP participants contribute a percentage of their gross salary based on employment. The public employer may also make a contribution based on plan provisions. As a DCP member, you designate a percentage of total contributions to be placed in one or more of seven accounts of the Minnesota Supplemental Investment Fund. Your contributions are combined with your employers to pur- chase shares in the investment accounts you select. Your investment selections and market conditions determine your DCP account balance. See page 4 for more informa- tion on investments. The plan provides a lump —sum benefit, once eligible, of the value of your shares with accrued interest or dividends. No monthly retirement benefits are available. eligibility and enrollment DCP is a retirement savings program for elected local government officials, physicians, city managers, and other specific classes of positions listed under Minnesota Statutes Chapter 353D. Eligibility for the DCP can vary depending on your employment. An explanation of eligible DCP participant groups are provided below. ELECTED OFFICIALS • With some exceptions, an individual appointed to a Eligible local government officials include: board or commission of this governmental subdivision. The individual must earn at least $5,100 per year. • Local elected officials or a person appointed to fill vacant local elected position. Examples of non -governing body positions: local city or county auditors, treasurers, attorneys, clerks, certain township clerks. ----------------------------------------- A person elected to a non -govern- ing -body position who earns more than $5,100 per year may join the D. General Plan instead of the DCP. See ; page 7 for details. • ------------------------------------------------ Examples of governing body positions: county commissioner, city council, school board, township supervisor, soil and water board, or other special dis- trict board. Elected county sheriff who is currently receiving retirement benefits from the PERA Police and Fire Plan. •--------------------------------------------------------; Participation in DCP is voluntary for each individual. Also, there is no minimum salary require- ment (with the exception of appointed I ICI YFC members to a board or commission). I ' - ' ' -- Elected officials may also choose to discon- tinueDCP participation at any time. HOW TO ENROLL To enroll, the member and employer must complete the Membership Election by Public Officials form.