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ICMA RETIREMENT CORPORATION <br />The ICMA Retirement Corporation has offered a nationally available public <br />employee deferred compensation plan since 1972. They are a nonprofit <br />organization, originated and governed by local public officials. RC currently <br />administers the largest single pool of local government deferred assets, with a <br />trust fund balance in excess of one-half billion dollars. Over 2,700 local <br />governments offer this deferred compensation plan to their employees. <br />RC currently offers four investment options to all participants. These options <br />allow an employee to participate in the major investment categories considered <br />prudent for retirement planning. They are: <br />INVESTMENTS <br />THE GUARANTEED FUND: This fund offers protection of principal <br />and a guaranteed rate of return for a specified period -of <br />time. Current contributions (received through November 30, <br />= 1987) wily earn 8.10 percent compounded annually. This rate <br />is guaranteed through November 30, 1991. <br />THE STOCK FUND: This fund offers a varied portfolio of <br />equities and has the potential for the highest long-term <br />returns of any of RC's funds, at a significantly higher level <br />'-of risk. Its' objective is to provide a return, over any five <br />year period, at an average rate exceeding inflation by 6 <br />percent per year. <br />THE BALANCED FUND: This fund is oriented toward equities. <br />However, due to the high volatility of return in equity <br />investment, the fund is balanced with corporate bonds and <br />government securities. Its long-term objective is to provide <br />a return, over five years, in an average amount to exceed <br />inflation by 4 percent per year. <br />THE BOND FUND: This fund is restricted to investments in <br />corporate and government -backed debt securities. Over five <br />years this fund is designed to return an average yearly rate <br />of 2 percent above inflation. In any year this fund should <br />not have a negative return. <br />Participants may change the investment allocation for future contributions at <br />any time and as often as they wish by filing an amended joinder agreement. <br />Past aaumulations may be transferred among the variable funds at any time, as <br />long as three or more months have elapsed since the last transfer. <br />FEES <br />RC charges only two fees: a $L00 per month account maintenance fee and an <br />administrative fee of 1 percent of the total fund balance for the Balanced, <br />Bond, and Stock Funds. Both fees are prorated monthly. Returns for the <br />variable funds are always quoted net of the 1 percent administrative fee. The <br />return on the Guaranteed Fund is quoted to participants after deduction of <br />necessary operating expenses. In July, 1982 RC removed the $1.00 monthly <br />charge for all participants contributing less than $800 annualized. That fee <br />elimination was designed to encourage employees to begin retirement planning. <br />EMPLOYEE EDUCATION <br />RC will work with the County to schedule a series of meetings to introduce this <br />service. Trained RC representatives will conduct the employee meetings to <br />explain the options and how to fill out the enrollment forms. RC provides all <br />forms, brochures, and pamphlets. <br />STATUS REPORTS <br />RC automati+r y provides participants with quarterly account statements which <br />detail all account activity. In addition, participants receive an annual <br />summary which lists the same type of infor++ati cn that appears on the quarterly <br />statement, and projects fund balances and retirement payout options. <br />31 boor 70 F° r 300 <br />