Date: April 24, 2001
To: Board of Supervisors
Subject: Helping Employees Secure Their Futures

Summary:
While the County provides many investment opportunities for employees, there are additional ones available that could be of great benefit to employees. This proposal will expand investment options for County employees.

Recommendation:
Chairwoman Jacob:

Direct the CAO to formulate a benefit package that would allow employees additional direct investment deductions to any institution of their choosing that provides financial services and return to the Board in 30 days with the proposed policy and any required agreements.

Fiscal Impact:
There is no fiscal impact related to this item.

BACKGROUND:
Over the past several years the County has been on the leading edge of providing expanded investment opportunities to its employees. Recent benefit additions by the Board include the 401(a) Deferred Compensation program and the Voluntary Benefits Program. These programs allow employees to save for retirement and purchase various insurance related products through payroll deductions. In addition to these programs, there are additional benefits the County could provide employees through payroll deductions at little or no cost to the County.

Many employees also have a need to fund additional financial related programs outside those currently offered by the County. This could include Roth IRAs, college savings for children, or other insurance needs. By allowing employees to make payroll deductions for these services, the benefits are numerous; the employee can choose to do business with any firm they wish, payroll deductions simplify monthly budgeting and employees don't have to mail payments to an outside location in order to receive these services.

The County of San Diego has stressed the importance of saving and investing for the future through many of its own practices. Allowing employees to make additional payroll deductions to any institution that provides financial related services; such as IRAs, Roth IRAs, college savings vehicles, or insurance will also highlight the importance the County places upon saving and planning for retirement, saving and attending college, and insuring complete and adequate insurance coverage for your family while expanding employee opportunities.

I urge your support.

DIANNE JACOB
Chairwoman