Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Rocio Kiryczun, Human Resources Director
Subject: California ScholarShare 529 Workplace Savings Program (WPS)
RECOMMENDATION:
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Adopt a resolution authorizing Human Resources to inform eligible employees of the California ScholarShare 529 Workplace Savings Program (WPS) and to help facilitate the direct deposit feature for employees effective February 1, 2022.
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BACKGROUND:
Human Resources Benefits Division is committed to finding financial wellness solutions to help employees plan for the cost of higher education for their children and family members. Supervisor Canepa’s office helped to arrange a meeting for Human Resources with the California ScholarShare 529 Workplace Savings Program (WPS) and we learned of all of the valuable benefits this program will offer to our employees.
ScholarShare 529 WPS is a state-sponsored, tax-advantaged 529 college savings plan to help families and individuals plan for the cost of higher education. Funds from this plan can be used to pay for tuition, fees, certain room and board costs, books, computers and related technology expenses, supplies, and other equipment. This program gives employees easy access to 100% tax-free growth on their college savings and offers employees a low-cost solution to start saving for higher education. Employees can contribute either through a post-tax payroll deduction or direct deduction from the employees’ bank account of choice. All savings are completely portable and employees have access to meet with a dedicated financial advisor through TIAA Tuition Financing, Inc.
ScholarShare 529 WPS has no reporting requirements and no contract requirements for participating employers who offer payroll deductions. Accounts can be opened with no minimum deposit and all investment options will be professionally managed by TIAA Tuition Financing, Inc.
DISCUSSION:
County of San Mateo Human Resources Department will ensure each full-time employee is notified that they are eligible to open an account with any dollar amount and start communicating about the ScholarShare 529 WPS program in February 2022. Human Resources will host webinars regarding this program in February and communicate annually during Financial Wellness Month and Open Enrollment. Human Resources will also help facilitate the direct deposit feature upon request from an employee.
PERFORMANCE MEASURE:
The County will not have access to complete information on the total number of County employees who participate in this plan, as employees may contribute through confidential direct deposits or directly through the plan to which the County would have no access.
|
Measure |
FY 2021-2022 Estimated |
FY 2022-2023 Projected |
|
Communications and Education with employees about the program - Emails sent / Webinars hosted |
2 emails / 4 webinars |
2 emails / 2 webinars |
FISCAL IMPACT:
There is no fiscal impact for communicating this program, and there is no cost to the County for participating in the pre-tax payroll deduction option.