Laserfiche WebLink
• • <br /> Town of Los Altos Hills <br /> Classification and Compensation Plan <br /> SECTION 4 <br /> OTHER BENEFITS <br /> 4.1 Deferred Compensation <br /> 4.1.1 General Description <br /> Town employees are eligible to participate in approved deferred compensation <br /> plans through payroll deductions. These deductions are forwarded to the <br /> appropriate institution by the Town at the time that each payroll is issued. <br /> 4.1.2 Eligibility <br /> Regular, full-time employees and part-time employees who regularly work twenty <br /> (20) hours per week or more are eligible for this benefit. Part-time employees <br /> who work less than twenty (20) hours per week and temporary and retired <br /> employees are not eligible for this benefit. <br /> 4.1.3 Benefit <br /> The two companies that are approved by the Town to administer this benefit are <br /> the Hartford Insurance Group and the ICMA Retirement Trust Corporation. <br /> Deferred compensation is self-funded with no contribution from the Town unless <br /> otherwise stipulated by contract. Employees who elect to participate have an <br /> amount deducted from each paycheck deposited directly into their deferred <br /> compensation account. The amount of the maximum annual contribution is <br /> determined by federal and state regulations. <br /> 4.1.4 Method of Administration <br /> Deferred compensation transactions are handled as payroll deductions. <br /> Deductions from an employee's gross pay are deposited in the appropriate <br /> account and are itemized on the employee's check stub. Taxable income at year <br /> end is based on an employee's post-deduction gross pay. Federal and state <br /> income taxes are not calculated or withheld on amounts deposited in employee <br /> deferred compensation accounts, as they are deferred until withdrawals from the <br /> accounts begin(usually upon retirement). <br /> 11 <br /> Proposed July 21,2011 <br /> Resolution No.41-11 Page 12 <br />