HomeMy WebLinkAbout4929
RESOLUTION NO. 4929
A RESOLUTION OF TilE CITY COUNCIL OF TilE CITY
OF ARCADIA ADOPTING AN EMPLOYEES' DEFERRED
COMPENSATION PLAN AND AUTIIORIZING TIlE EXECUTION
OF AGREEMENTS RELATED TO SAID PLAN BY THE PLAN
ADMINISTRATOR.
WHEREAS, the City of Arcadia has in its employ employees who are and will
be rendering valuable services to the City; and
WHEREAS, said employees may desire to defer income until retirement for
the purpose of deferring Federal and State Income TaKes on said income; and
WHEREAS, the City Council of the City of Arcadia has considered the estab-
lishment of a Deferred Compensation Plan for the said employees and believes that the
adoption of said Plan will enhance the efficiency and morale of the employees and will
be in the best interests of the CitYi and,
WHEREAS, it is intended that said Plan shall be in accordance with Federal
and State law and regulations; and
WHEREAS, the City Council finds that it would be for the benefit and in the
best'interests of the City to approve the proposed Deferred Compensation Plan this
day submitted to the City Council.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arcadia
that the City Council establish said Deferred Compensation Plan for said employees
of the City and that said Deferred Compensation Plan this day submitted to the City
Council, which is attached hereto as Exhibit "A" be, and the same is hereby approved
and adopted, and to remain in effect until terminated by further resolution of the
City Council.
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4929
BE IT FURTHER RESOLVED that the Director of Finance, as Plan Administrator,
may, on behalf of the City, execute all Participation Agreements with said City
employees and other eligible officials and officers, which are necessary for said
persons' participation in the Plan.
BE IT FURTHER RESOLVED that the City Clerk shall certify to the adoption
of this resolution.
I HEREBY CERTIFY that the foregoing resolution was adopted at a regular
meeting of the City Council of the City of Arcadia held on the 16th
day of
December, 1980 , by the affirmative vote of at least three Councilmen, to wit:
AYES: Councilmen Dring, Gilb, Haltom, Saelid and Pellegrino
NOES: None
ABSENT: None
!!I;,.~~
City Clerk of the C ty of Arcadia
SIGNED AND APPROVED this 16th day of December, 1980.
oJ--~O-<~~dld
Mayor of the City of Arcadia
~a:~
City Clerk
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4929
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EXHIBIT "A",
, t '<;'W-' '. :~:C' "
EMPLOYEES' DEFERRED COMPENSATION PLAN
SECTION 1.
NAHE:
~he name of this Plan is the
rOMPFNSA'T'TON PLAN"
"CTTY OF ARrADTA FMPTOYFFS' DFFFjilRrD
(hereinafter referred to as the Pan").
SECTION 2.
PURPOSE: The purpose of this Plan is to enable Employees of the riry nf
A~~~n;~ A~~~n;~ C~'iFnrM;~
to defer portions' of their compensat~on and to provide retirement, disability
and death benefits.
SECTION 3.
DEFINITIONS: For the purpose of this Plan, certain words or phrases used
herein will have the following meanings.
3.1 "Employer" means the Public Agency named in Section 1 hereinabove.
3.2 "Employee" means any officer or employee of the Employer named in
Section 1.
. 3.3
"Participant" means any eligible Employee who elects, pursuant to
the Plan, to defer a portion of his/her compensation, and who
fulfills the requirements for participation in the Plan.
3.4 "Participation Agreement" shall mean the written agreement by which
an Employee elects to become a Participant under the Plan.
3.5 "Beneficiary" may be any person, trust, corporation or firm, or
the estate of the Participant, or any combination of the foregoing
design'ated by a Participant to receive benefits under the Plan.
Designation shall be by written instrument executed by the Parti-
cipant unless otherwise provided. Beneficiary may be singular or
plural, primary or contingent.
3.6 "Administrator" means the Employer and/or other parties appointed
by the Employer to administer the Plan.
'3.7 .Compensation" means the total of all amounts which would be
paid by the Employer to or for the benefit of an Employee (if he
were not a participant in the Plan) for actual services for the
period that he is a Participant.
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3.8 .Payroll period" means the work period for which a pay check is
issued.
3.9 .Includible Compensation" means compensation for services
"DE;'!::R.I?.ED C011PENSATION PLAN - Page 2
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performed for Employer which is currently includible in gross
income, but less any a~ounts deferred pursuant to a plan
described in IRC Section 457 (including but not limited to
this Plan) or IRe Section 403[b).
3.10 "Retirement" means retirement from service with the Employer
- which becomes effective on the first day of the calendar month
after Participant meets the age and service requirements for re-
tirement (including "early" or "late" retirement) specified in
the applicable retirement policies of the Employer.
SECTION 4. PARTICIPATION IN THE PLAN
4.1 Any Employee designated by the Employer to be eligible may elect
to become a Participant in the Plan by executing and filing a
Participation Agreement with the Administrator. An election
to Participate in the Plan shall become effective with respect
to Compensation earned by the Participant during the calendar
month next following the date of the Participant's election.
Such election shall continue thereafter in full force and
effect unless revoked by the Participant.
4.2 Each Participation Agreement shall specify the amount, by dollar
amount or by percentage of gross compensation, which is to be
deferred pursuant to the plan and to be withheld out of the
Compensation otherwise payable to the Participant for each Payroll
Period. The amount deferred each year may not exceed the lesser
of $7,500 or 33 1/3% of Participant's Includible Compensation.
Such deferred amounts shall be reasonably equal installments
totaling not less than h>n rJnll "r"
($ 1 0 00 ) per payroll Period.
The annual minimum may be prorated during the inception year, or
during a partial year for a new or newly eligible Employee, for
full Payroll Periods remaining in the first calendar year of
participation.
4.3 Notwithstanding the provisions of 4.2 herein, during any or all
of the last 3 tax years ending before a Participant's normal
retirement age the maximum amount deferred annually shall be the
lesser of $15,000 or the sum of the maximum amount which can be
deferred pursuant to paragraph 4.2 plus the difference between
the amount which could have been deferred in prior years and the
amount actually deferred pursuant to the Plan.
4.4 A Participant may revoke his election to participate in the plan,
and thereby terminate further deferral.: of his Compensation,
by executing and filing with the Administrator a notice of
revocation at least thirty '(30) days prior to the effective
date of revocation. A former Participant may not rejoin the
Plan during the calendar month in which revocation occurred;
however, he may elect to become a participant for subsequent
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... DEF::iRRED COtlPENSATION PLAN - Page 3
calendar months after a lapse of not less than six months.
No amounts shall be payable to an Employee upon revocation of
his participation in the Plan unless otherwise provided for in
Section 7.
4.5 A Participant may change the amount of Compensation to be
deferred in a subsequent calendar month by executing and filing
- notice with the Administrator at least 30 days prior to the
beginning of such month, provided, however that such change
may be made not more than two times in a calendar year.
4.6 A Participant may designate in writing a Beneficiary to receive
any benefits which may be payable under the plan upon the death
of such participant. Designation of Beneficiary may be changed
by notice in approved form executed and filed with the Administra-
tor.
SECTION 5. DEFERRAL OF COMPENSATION
5.1 During the period of participation, the Employer shall not pay
the Participant his full compensation, but shall ,defer payment
of such part of his Compensation as the Participant has specified
in his Participation Agreement. The Employer shall establish
in its records an Individual Deferred Compensation Account
("IDC Account") for each Participant, and a summary of such
IDC Accounts, to be identified as a General Deferred Compensa-
tion Account ("GDC Account"), to provide a convenient method of
measuring its obligations to each and all Participants under
the Plan.
5.2 Neither the existence of the Plan nor the IDC Accounts shall be
deemed to create a trust, and the Employer shall at all times
be the legal and beneficial owner of all assets of said IDC
Accoun ts .
5.3 Neither the existence of the Plan or the IDC Accounts shall
entitle any Participant, a beneficiary of any Participant, or
a creditor of any Participant to a claim or lien against the
assets of the IDC Accounts. The Participant and his beneficiary
shall have only the right to receive benefits pursuant to the
Plan.
SECTION 6. ADMINISTRATION OF THE PLAN
6.1 The Plan shall be administered by the Administrator under the
direction of the Employer. Acting for and in behalf of the
Employer, the Administrator may transmit amounts in the IDe
Accounts to'such investment plans as hereafter may be approved
by the Employer. In regard to such investments, written agree-
ments between the Employer and the institutions accepting funds
for investment shall contain at least the following provisions:
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.'.DE?~RRED COMPENSATION PLfu~ - Page 4
6.1(a) Any investment of amounts in the IDC Accounts, includ-
ing earnings on such amounts, shall be made according
to written instructions of the Administrator.
6.1(b) The Employer shall be the legal and beneficial owner of
all amounts invested Cas between Employer and Participant) .
The Employer shall hold all certificates, policies and '
other documents evidencing ownership of the amounts
invested, anc shall maintain records, including records
of the IDC Account of each Participant and the GDC Account.
6.1(c) No less frequently than quarterly, the Employer shall be
furnished with written reports showing the fair market
value and/or the current balance of the amount invested
(including interest and dividends accrued, if any), and
amounts shown in such reports shall be reflected in each
Participant's IDC Account by the Employer.
6.ICd) No less frequently than quarterly, each Participant shall
be furnished with a statement showing transact~ons, earn-
ings and the current balance of the amounts invested from
his IDC Account.
6.ICel The EmpLoyer shall have the sole right to vote any shares
of stock or proxies which it may acquire or be 'entitled
to by investment of IDe Account funds.
6.2 The Administrator shall record promptly and accurately all trans-
actions pertaining to Participants' Deferred Compensation in their
IDC Accounts, and Participant shall be entitled to know the balance
in his IDC Account at least quarterly.
6.3 The Employer shall have the sole authority to enforce the Plan and
shall be responsible for its operation in accordance with its
terms.
6.4 The Employer shall determine all questions arising out of the
administration, interpretation and application of the Plan. All
determinations shall be conclusive and binding.
6.5 Prior to the time specified in the Plan for payment to participant
each Participant shall elect the time, manner and (if applicable)
the amount of benefits to be paid to him, or in the event of his
death to his Beneficiary, under the Plan. If no election is made,
payment may be made as a lump sum distribution.
6.6 In the event that the Employer should purchase an annuity as a
means of investment and distribution of funds in a Participant's
IDC Account, the Employer shall be bo~ the owner and the named '
Beneficiary of such annuity contract.
6.7 If the Plan provides for more than one type of investment objective
a Participant may request a change in preference of investment
'. OE"P:::RRED CO~lP~NSATION PLAN - Page 5
(as provided in Section 4.4). Such request may be made only
with respect to compensation not yet earned and deferred. The
Employer may, but is nob required to, honor such request. The
minimum investment in each type of investment shall be
nnp t-nnl1<:~T'lr1 do11,ars $ 1 ,000
per payroll Period. Nothing contained in this Plan shall be con-
~strued as requiring the Employer to invest deferred'amounts or as
. limiting the Employer's discretion with respect to making invest-
ments.
SEC7ION 7. BENEFITS
The Employer shall pay to the Participant, or to his Beneficiary if applicabl,
the amount in such Participant's IOC Account as of the month-end following
the Participant's termination, retirement, total disability or death. Dis-
trLbution of Benefits under the Plan will be made, or if in installments
shall commence, not later than sixty (60) days after notice to the Admin-
istrator of the occurrence of the events or birthday described in Section 7
unless otherwise specifically provided in the Participation Agreement.
All distributions shall be subject to any State or Federal taxes required
to De withheld. Pa1~ent shall be made in accordance with the election
made in the Participation Agreement, except in the event of Hardship
described in Section 7.4.
Installment distributions shall be in approximately equal installments which
shall be intended to exhaust the balance due Participant or Beneficiary
at the expiration of the term over which they will be made. Such install-
ment amounts may be adjusted from time to time to take into consideration
gains or losses, if any, from funds invested.
No~~ithstanding the foregoing if any method elected by the Participant,
shall result in installment payments of less than $25, the Employer shall
make payments on an annual basis aggregating installments otherwise due;
or if the balance due Participant or Beneficiary is less than $1,000,
Employer shall discharge its obligation by a lump sum payment.
7.1 RETIRE~ffiNT: Upon retirement, the full benefits credited to the
Participant's IDe Account, plus or minus investment gains or
losses, but less any Federal or State taxes required to be with-
held, shall be distributed to a Participant in anyone or more
of the following ways, as pre-elected at time of enrollment:
7.1 (al
7.l(bl
In a lump sum.
In monthly, quarterly, or annual payments for a desig-
nated period of not less than one year and not more than
the remaining years of the Participant'S life expect-
ancy, determined' by the Administrator in accordance
with standard mortality tables recognized for that
purpose.
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.-'_ DE:~ERRED COI1PZNSATIO~ PLAN - Page 6
7.ltc)
_ 7.Hd]
Installment payments, equal to benefits which would
be payable to Employer under and pursuant to terms
of a retirement annuity policy or policies which may
be purchased at the time of Participant's retirement,
shall be paid to him in the event that Participant had
pre-elected an 'annuity form providing for such payments.
In payments, under 7.'1 (a), 7.1 (b)
postponed by pre-election at time
Participant reaches age
between 50 and 70).
and 7.l(c) above,
of enrollment until
(designate age
7.2 OTHER TERMINATION: In the event of employment before Retirement
for reasons other than those specified in Section 7.3 and
Section 7.4, then the full benefits credited to Participant'S
IDe Account, ,plus or minus subsequent gains or losses, shall be
distributed to him in anyone or more of the following ways,
pre-elected at the time of enrollment:
7.2(a]
7.2 (b]
7.2 (c)
In a lump sum.,
In monthly payments over a period not to exceed ten (10)
years from date distribution begins.
In payments,
pre-election
reaches age
under 7.2(a) and 7.2(b)' above, postponed
at time of enrollment until Participant
(designate age between 50 and
by
70) .
7.3 TOTAL PERMANENT DISABILITY: In the event of the total permanent
disability of a Participant while he is an Employee of the Employer,
the Employer shall pay to the Participant an amount equal to the
balance of the Participant's IDe Account as of the month-end
following the Employer's determination of such disability, such
amount' to be paid in the manner pre-elected by the Participant at
the time of enrollment pursuant to the options in Section 7.1,
above.
1.4 HARDSHIP: In the event of occurrence to the Participant of an
unforseeable emergency event to be determined by the Employer
in his sole discretion, the Employer may pay to the Participant
all or any portion of the amount in such Participant's IDe
ACCOunt as of'the month-end following the date when such determina-
tion is made. As used herein, emergency event shall mean only a
real emergency which has occurred, which is or was beyond control
of the Participant, and the occurrence of which has or would cause
the Participant great financial hardship, The amount that will
be paid out shall be limited to the amount necessary to alleviate
that hardship.
Any distribution under this section shall be deemed a revocation
under Section 4.4 and no further deferral of Compensation will be
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. OE?~Rf>.ED COHPENSATION PLAN - Page 7
made unless Participant subsequently re-elects to participate
as provided in 4.4.
7.S OEATH: In the event of death of any Participant, either before
or after termination of employment, then the full benefits
- credited to his IDC Account shall be distributed to his
Beneficiary in a manner described in Sections 7.I(a), 7.l(b)
and 7.lCcl as pre-elected at time of enrollment.
SECTION 8. MISCELLANEOUS
8.1 The contractual obligation of the Employer to the participant
established by the Plan shall not be assignable in whole or
part, voluntarily or by operation of law, and no right or interest
of a Participant pursuant to the Plan shall be subject to any
obligation or liability of such Participant or his Beneficiary,
except as provided in the next paragraph hereinbelow.
8.2 No Participant or other person shall have any legal or equitable
right against the Employer except as provided in the Plan,
and in no event shall the terms of employment of any Employee
or Participant be modified or in any way aff~cbed thereby.
8.3 Each Participant herein expressly agrees for himself and his
Beneficiary that he shall look solely to the general assets
of the Employer for the payment of any such benefit to which
he may become entitled under the Plan, and acknowledges that
all amounts deferred hereunder shall be available to satisfy
the general obligations of the Employer.
8.4 The Plan has been adopted in the State of California and shall
be construed and governed and adninistered in compliance
with all applicable State law.
8.5 Captions used in the Plan are for the purpose of convenience
only, and shall not limit, restrict or enlarge the provisions,
of the Plan.
8.6 The Plan shall be binding upon and shall inure to the benefit
of the Employer, its successors and assigns, all Participants
and Beneficiaries, and their heirs, and legal representatives.
8.7 As used in the Plan, the masculine or feminine or neuter gender,
and the singular or plural number shall each be deemed to
include the others unless L~e context Clearly indicates otherwise.
8.B Any notice or other communication required.or permitted under
the plan shall be in writing and, if directed to the Employer,
shall be sent to the Administrator at his principal office; and,
if directed to a Participant or a Beneficiary, shall be sent
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"DEFERRED COMPENSATION PLAN - page 8
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to such par,ticipant or Bene.ficiary at his
as it appears on the Employerts records. '
deemed given when mailed.
last-known address
Such notice shall be
8.9 Deductions for Participantts contributions to retirement associa-
- tions shall be made without reference to amounts deferred
pursuant to the Plan.
B.IO An approved leave of a~sence with pay shall not affect agreements
to participate in the Plan.
B.ll An approved leave of absence without pay shall be considered to
be a temporary suspension of participation in the Plan.
Participation shall be automatically reinstated as of the first
day of tbenext Pay Period subsequent to the termination of
such leave of absence status.
B.12 The Employer shall make no loans or advances to the Participant
or Beneficiary based upon rDC Accounts, described herein, or
upon any other obligations under the Plan.
SECTION 9. TE~~INATION OP PLAN BY E}WLOYER
The Plan may be amended or terminated by the Employer at any time, or the
Effi?loyer may, without amending or terminating the Plan, cease to set
aside assets under the Plan. No amendment or termination of the Plan,
and no cessation of the setting aside of assets by the Employer shall
reduce or impair the rights of any Participant or Beneficiary which may
alxeady have accrued.
9.1 If the Plan is terminated by the Employer, the Employer may,
elect to distribute, in the same manner to all Participants,
amounts equal to the balance of their IDC ,Accounts as of the
mon~-end following such termination.
9.2 If Employer does not elect to pay accrued benefits on termination
of the Plan, he shall cease all deferrals of Compensation, but
payments of benefits shall be made pursuant to the applicable
provisions of Section 7 of the Plan and the irrevocable election
of the various Participation Agreements then in effect.
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