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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. -1- 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 -2- 4929 .' .~....~ ...;t.:'.:.i..... .. 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. ..:;-, 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 - , ,. T : 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 - ... 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: . ' .'.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. .... ..- -,' . .-'_ 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 . . . . 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 . . . - . . .. .. "DEFERRED COMPENSATION PLAN - page 8 . ') 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. '.