title
Amendment and Restatement of the Plan Document for the North Texas Municipal Water District 457(b) Deferred Compensation Plan, Resolution No. 25-29
end
SUBJECT
recommendation
Board authorization is requested to amend and restate the plan document for the North Texas Municipal Water District 457(b) deferred compensation plan to bring the plan in compliance with recent regulatory changes that take effect on January 1, 2026
end
PURPOSE
The 457(b) plan document is being amended and restated to:
* Introduce a new Roth account allowing elective post-tax catch-up contributions for employees aged 50 or older whose prior year FICA wages exceeded $145,000, in compliance with Section 603 of the SECURE 2.0 Act of 2022 (Setting Every Community Up for Retirement Enhancement)
* Incorporate loan policy language and establish a structured process for resolving claims, enhancing plan administration and oversight; and
* Set an effective date of January 1, 2026, aligned with the IRS deadline for implementing the Roth provisions of SECURE 2.0
RECOMMENDATION
The Executive Director and NTMWD staff recommend that the Board of Directors adopt Resolution No. 25-29, authorizing the amendment and restatement of the 457(b) plan for NTMWD employees to ensure compliance with recent regulatory changes, and establish January 1, 2026 as the effective date of the amended plan document
Committee:
This was an item on the May 7, 2025, Personnel Committee agenda
DRIVER(S) FOR THIS PROJECT
Strategic Objective:
4.4.3 - Ensure Resilience of District Retirement Offerings
? Regulatory Compliance
? Asset Condition
? Capacity
? Redundancy/Resiliency
? Relocation or External Requests
? Operational Efficiency
? Safety
? Administrative
? Policy
? Other _____________
BACKGROUND
Established on October 28, 1999, the NTMWD 457(b) deferred compensation plan offers employees the opportunity to make elective contributions to a tax-deferred savings and investment account on a pre-tax ...
Click here for full text