The County has, available to all regular employees,
deferred compensation plans adopted in accordance with Internal
Revenue Code Section 457. The plans permit employees to defer
a portion of their salary until future years. The deferred compensation
is not available to employees until termination, retirement,
death or unforeseeable emergency.
All amounts of compensation deferred under the plans,
all property and rights purchased with those amounts, and all
income attributable to those amounts, property, or rights are
(until paid or made available to the employee or other beneficiary)
solely the property and rights of the County (without
being restricted to the provisions of benefits under the plans),
subject only to the claims of the County's general creditors.
Participants' rights under the plan are equal to those of the
general creditors of the County in an amount equal to the fair
market value of the deferred account for each participant.
It is the opinion of the County's legal counsel that
the County has no liability for losses under the plan but does
have the duty of due care that would be required of an ordinary
prudent investor. The County believes that it is unlikely that
it will use the assets to satisfy the claims of general creditors
in the future.
Pursuant to Governmental Accounting Standards Board Statement 2, "Financial Reporting of Deferred Compensation Plans Adopted under the Provisions of Internal Revenue Code Section 457," the plan assets and a corresponding liability to employees are reported in an agency fund.