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RESOLUTION NO. 4573
^ RESOLUTION OF TilE CITY COUNCIL OF THE CITY
OF ARCADIA ADOPTING AN EMPLOYEES' DEFERRED
COMPENSATlON PLAN AND AUTHORIZING l11E EXEGUTION
OF AGREEMENTS RELATED TO SAID PLAN BY THE PLAN
ADMlNISTRA TOR.
.
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 Taxes on said income; and
WHEREAS, the Gity Council of the Gity 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 City; 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, to be effective October I, 1976, and to remain in effect until terminated
by further resolution of the City Council.
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,BE IT FURTHER RESOLVED that the Director of Finance" as Plan Adminis-'
trator, may,. on behalf of the City, execute all Participation Agreements with said
City employees and other eligible officials and officers, which are necessary for
.-
1
'said persons' participation in the Plan.
"
I HEREBY CERTlFY that the foregoing resolution was adopted at a regular,
meeting of the City Council of the City of Arcadia held on the, 21stday of
September
wit:
, 1976, by the affirmative vote of at least three Councilmen, to
"
AYES:
council Members Gilb, Parry, Margett, Saelid & Lauber
,NOES:
NONE
ABSENT:
NONE
~~.
City Clerk of the City of Arcadia
\../
SIGNEO AND APPROVED this 21st day of September
, 1976.
,7~ ~cd.~
Mayor of the City of Arcadia
.' ATTEST:
!~~
City Clerk
(SEAL)
.~.
1,573
.:;:: ~;C ;:.",:':;
DEFERRED COMPENSATION PLA.'I
PARTICIPATION AGREEMENT
THIS AGREEMENT, .mad~ by and b~twe~n th~
City of Arcadia
h~r~inaft~r r~f~rr~d to as "Employ~r" and Glendale Federal Savings a,!d Loan Association
WHEREAS, the Employer has established the " City of Arcadia Employees'
DEFERRED COMPENSATION PLAN," hereinafter referred to as "Plan" for
the benefit of its employees. and
,WHEREAS, the Plan provides that any employee, subject to the limitations es-
tablished in the Plan of the Employer. may elect to join and become a Partici-
pant in the Plan upon executing and filing with the Employer a Participation
Agreement, and
WHEREAS, the Employee desires to join and become a Participant in the Plan,
NOW, THEREFORE, the Employer and the Employee agree as foUows:
1. Employer has' provided the Employee with a current copy of the Plan.
2. Employee hereby elects to become a Participant in the Plan and to defer
payments pursuant to the 'Plan as follows:
a. Amount of Compensation per Payroll Period
$ (not less than $120 per year)
, (or) b. Percentage of Compensation per Payroll Period
percent (not less than $120 per year,
rounded up to the nearest even dollar).
3. Employee agrees that his rights to the Deferred Compensation shall be
governed by all terms and conditions of the Plan.
4. The Participating Employee designates his investment objectives to be:
a.
Savings and Loan Account
_0/. of deferral (2. a. )
b.
Annuity
"I. of deferral (2. a. )
-, '
Employer may recognize these objectives, but is not required hereby to 4573
do so. '
Under Section 7 of the Plan, the Employee irrevocably
elects the following distribution of benefits: '
At Retirement,
(1) 0
(2) 0
(3) 0
(4) 0
Lump Sum _"/0
Installments Payable over...:..-years--,--%
o Monthly 0 Quarterly 0 Annually'
Install ments Payable Life Expectancy %
-
o Monthly 0 Quarterly 0 Annually
Annuity (monthly)_%
o
o
o
10 years certain & liie annuity
,Single ilie annuity ,
Joint & survivor annuity
At Other Termination (except total disability)
(1)0,
(2) 0
Lump Sum % '0
Postpone to age 0 50 60 0 65
Installments Payable monthly over years %
(not to exceed 10 yea;5) --
Postpone to age 0 50 0,60 0 65
At Total Permanent Disability
(1) 0
(2) 0
(3) 0
Lump Sum %
, -
Installments Payable monthly over years, %
, - -
Life Annuity (monthly)_%
At neath to Beneficiarv
(1) 0"
(Z) 0
(3) 0
Lump Sum _%
Installments Payable over
years_%
o Monthly 0 Quartel"ly 0 Anl)ually
Annuity (Monthly) _%
o Life Annuity
o 120 months certain & liie
-,-
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to receive; in the event oi his death, arry- benefits to which he is
entitled under the Plan:
Name oi Beneiicary
Address oi Beneficiary'
a.
b.
c.
d.
Ii more than one person is named as Beneficiary, any payments
to which they may be entitled shall.be paid as follows: (Choose one)
o
Wholly to the person designated as .the first Beneficiary
above provided '(she) - (he) survives me. and u (she I -
(he) does not survive me, in equal shares to the remain-
ing Beneficial;'ies who survive me.
D
In equal shares, to such oi the designated Beneiiciaries'
as shall then be living.
I hereby reserve the right to change or revoke this Beneficiary
designation without notice to any Beneficiary.
Dated:
, 19
.
EMPLOYER.
By
Its
EMPLOYEE
I h~'reby agree to the deslognation of Beneficia ry a s shown above.
(Spouse ~o sign only ii not named above as sole first Beneficiary. )
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SPOUSE OF i:;M?LOYEE
CITY OF ARCADIA
EMPLOYEES' DEFERRED COMPENSA TlON PLAN
SECTION l.
NAME: . The name of this Plan is the
Compensation Plan
City of Arcadia EmDlovee.' DefeTTPd
(hereinafter referred to as the "Plan").
SECTION Z.
PURPOSE: The purpose of this Plan is to enable Employees of the City .of Al."cadia,
Arcadia, California
to defer portions of their compensation and to provide retirement, disability and
death benefits.
SECTION 3.
DEFINITIONS:. 'For the purpose of this Plan, certain worda or phrases used herein
will have the following meanings.
3.1 "Employer means the Public Agency named in Section I hel."ein above.
3. Z "Employee" means any officer 01." employee of the Employer named in Section l.
3.3 "Participant" me'ana any eligible Employee who elects, pursuant to the
Plan, to defer a portion of his /he r compensation, and who fulfills the
requirements for participation in the Plan.
~
3.4 "Participation A greement" shall mean the written agreement by which an
Employee elects to become a Participant under the Plan.
3.5 "Beneficiary" may be any person, tr.ust, corporation or firm. or the estate
of the Participant, or any combination of the foregoing designated by a Parti-
cipant to receive benefits under the Plan. Designation shall be by written
instrument executed by the Participant unless otherwise provided. Beneficia.ry
may be singular or plural, primary or contingent.
. 3.6 ,iAdministratol."" means the Employel." and/or other parties appointed by the
Employel." 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. Planl for actual services for the period that he is a Participant.
3. B
"Payroll Period" means the work period for which a pay check is issued.
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3.8(a) "Employment Period" means a calendar year, a period' from January 1st
to December 31st; except that the first year of an Employee's pa'rtictpa-
tion may be a 'short period commencing as. provided in Section 4. Z and.
. ending on December 31st of that year.
3.9 "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 retirement (including "early" or "late" retirement)
specified in the 'applicable retirement policies of the Employer.
SECTION 4." PARTICIPATION IN THE PLAN
4. I Any Employee designated by the Employer to be eligible may elect to become
a pa'rticipant in the Plan by executing and filing a Parti.cipation A greement with
the Administrator. An election to Participate in the Plan shall become effective
with respect to Compensation earned by the Participant during the Employment
Pe.....iodnext following the date of the Participant's election. Such election shall'
continue thereafter in full force' and effect' for subseque.nt Employment ,Periods
unless revoked by the Participant.
4. Z During the year of the inception of the Plan, or in the case of a new or newly
eligible Employee, the election to participate shall become effective commenc-
ing on the first day of the Payroll Period following the date of said election;
provided, however, said election is made no later than sixty (60) days after
notification by the Employer that the Plan has been implemented or the new
Employee or newly eligible Employee has become eligible.
4.3 Each Participation A greement 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 Par-
ticipant for each Payroll Period. Such deferred amounts shall be rea.sona.bly
equal inatallments totaling not les s than Ten Dollars
($ 10.00 ) per Employment 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.
4.4 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 (301 days prior to
the effective date of .revocation. A former Participant may not rejoin the
Plan during the Employrne!lt period in which revocation occurred; however,
he may elect to become a Participant for subsequent Employment periods.
No amounts shall be payable to an Employee upon revocation of his partici-
pation 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 Employment Period by executing and filing notice with the
Administrator at least 30 days prior to the beginning of such Employment 4573
'PP Ti.od .
DEFERRED COMPENSATION pLAN - Page 3
4.6 A Participant may d~signate in writing a Beneficiary to receive any benefits
which may be payable under the .Plan upon the death of such Participant. .'
Duignalrion 'of Benefidary' may be changed by notice i~ e,pp.1(ovll,c;l forM
executed and Iiled with the Administratol'.
SECTION S. DEFERRAL OF COMPENSATION
S. ! During the period of participation, the Employer shall not pay the Participant
his full Compensation, but shall defer payment of such .part' of his Compensa-,
tion as the Participant has specified in, his Participation A greement. The
Employer shall establish in its records an Individual Defe rred Compensation
Account ("IDC Account"l for each Participant; and a summary of such IDe
Accounts. to be identified as a General Deferred Colnpensation Account
. ("GDC Account"), to provide a. convenient method of measuring Us obligations
to each and all Participants under the Plan.
S. Z Neither the existence of the Plan nor the IDC A ccounts shall be deemed to
create a trust. and the Employer shall at all times be the. legal and beneficial
owner oi all assets of said IDC Accounta.
5.3 Neither the existe,nce of the Plan nor the IDC Acco,unts shall entitle any Par-
ticipant, a beneficiary of any Participant, 01:' a creditor of any Participant to
a claim or lien against the assets of the IDC Accounts. The Participant and
hie beneficiary shall have only the dght to receive benefits' pursuant to the
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SECTION 6. ADMINISTRATION OF THE PLAN
6.1 The Plan shall be adminietel:'ed by the Administl:'at()r under the direction 01
the Employer, Acting for and in behalf of the Employer, the Administrator
may transmit amounts in the IDC Accounts to such investment plans as here-
after may be approved by the Employer. In regard to such investments,
written agreements' between the Employer and the institutions accepting funds
ior investment shall contain at least the following provisions:
6.1(1101 Any investment of amounts in the IDC Accounts, including earnings on
such amounts,'shall be made according to written instructions of the,
Administrator. '
6. lIb) The Employer shall be the legal and beneficial owner of all amounts
invested (as between Employer and Participant). The Employer,shall
hold all certificates, policies 'and other documents evidencing 'owner-
ship of the amounts invested, and shall maintain records, including
, records oi t.he IDC Account oi each Participant and theODC Account.
. ' .
6.1(c) No less frequently than quarterly, the Employer shall be furnished
with wl:'itten reports showing the fair mal:'ket value and/or th,e curl:'ent
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. 4573
DEFERRED COMPENSATION PLAN - Page 4
6. I (d) No less frequently than quarterly, each Participant shall be iurnished
with a statement showing transactions,' earnings and the current bal-
ance. oi the amounts invested from his IDC Account.
6. I (e) Investments shall be subject to all appropriate State or Federal laws
and regulations.'
6. I (f) The Employe:!:' shall have the sole right to vote any shares of stock or
proxies which it may acquire or be entitled to by investment oi lOC
Al;:count funds.
. 6, Z The Administrator shall record promptly and accurately all transactions per~
taining to Participant~ I Deferred Compensation in their IDC Accounts. and Par-
ticipant 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 ior its operation in accordance with its terms.
6.' The Employer shall determine all questions arising out oi theadminlstratton,
interpretation and application oi the Plan. All determinations shall be con.
clullive and binding.
6.5 At the time oi his election to participate in. the Plan, each Par~cipant shall
elect the time, mariner and (if applicable) the amount of benefits to be paid
to him, or in ~he event oi his death to his Beneficiary, under the Plan. . This
shall be an irrevocable election oi such times, methods and amounts,. in order
to comply with IntS1'nal Revenue Service l'equirements ior avoidance of "con-
structive receipt" 01 deferred income.
6.6 In the event that the Employer should purchase an annuity as the means of in.
vestment and distribution oi iundl! in a Participant's !DC Account, the Employer
shall be both the o-.ytl8l' and the named Beneficiary oi such annuity contract. .
6,7 U the Plan provides lor more tho.n one type of investment, a Participant may
request a change in investment as provided in Section 4. 4 Such request may
be made only with respect to compensation not yet earned arid deferred. The
Employer may, but i9 .not required to, honor such request. . The minimum
investment in each type oi investment shall be Ten Dollars
$ 10.00 per Employment Period.
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DEFER.RED COMPENSATION PLAN - Page 5
. SECTION 7. BENEFITS
The Employer 'shall pay to the Participant, or to his Beneficiary u applicable, the
amount in such Participant's IDC Account as of the month-end following the Partici.
pant's termination, retirement, total disability or death. Distribution of Benefits
under the Plan will be' made, or u in inatallments shall commence, sixty (60) days
after notice to the Administrator of the occurrence of the events described in Section 7
unless otherwise specifically provided. All distributions shall be subject. to any State
or Federal taxes required to be withheld. Payment shall be made in accordance with
the irrevocable 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 installment amounts may be adjusted from
time to time to take into consideration gains or losses, u any, from funds invested.
Notwithstanding 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 Ben-
eficiary is less than $500, Employer shall .discharge its obligation by a lump payment.
7.1 RETIREMENT: Upon retirement, the full benefits credited to the Participant's
IDC Acc'ount, plus or minus investment gains or losses, but less any Feder.
al or State taxes required to be withheld, shall be di.stributed to a Participant
in anyone or more of the iollowing ways, as pre-elected at time of enrollment:
7.I(a) In a lump aum.
7~ l(b) In monthly; quarterly, or annual payments for a designated'period of
.' not less than one year and not more than the remaining years of the
Participant's life expectancy, determined by the 'Administrator in
accordance with standard mortality tables recognized for that purpose.
7.I(c) 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 re-
tirement, shall be paid to him in the event that Participant had pre-
elected an annuity form providing for such payments. .
7. Z OTHER. TEaMINA TION: In the event of termination of employment before
R.etirement for reasons other than those specuied in Section 7.3 and Section
7.4, then the full benefits credited to Participant's IDC Account, plus or minus
s'ubsequent gains or losses, shall be distributed to him in anyone or more of
. the following ways. pre-elected at the time of enrollment:
7. Z(a) In a lump surn:,
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DEFER.R.ED COMPENSATION PLAN - Page 6
7. Z(b) In monthly payments over a p,eriod not to exc",ed ten (10) years from
date distribution begins. .
7,Z(c) In payments under 7.Z(a) and 7.Z(b) above postponed by pre-election
at time of enrollment until Participant reaches his 50th, 60th or 65th
birthday. Payments under this subsection will commence on the. first
day oi the month following the Participant's birthday.
7.3 TOTAL PERMANENT DISABILITY: In the event of the total permanent disabiUty
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 IDC Account
as of the month-end following the Employer's determination oi such disability,
such amount to be paid in the manner pre-elected by the Participant at the time
oi enrollment pursuant to the options in Section 7. l, above.
7.4 HARDSHIP: In the event of occurrence to the Participant of an 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 IDC
. Account as of th.e month-end following the date when suchdeterminatlon is made.
As used herein, emergency event shall mean only a real emergency which has
occurred, which is or was beyond control oi the Participant, and the occurrence
of which has or would cause the Participant great financial hardahip. 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 made for the remainder oi
the current Employment Period.
7.5 DEATH: In the event of death of any: Participant, either before or after ter-
mination 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.I(b) and 7.l(c) as pre-elected at time of enrollment.
SECTION 8. MISCELLANEOUS
8. 1 The contractual obligation oi 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 pro-
vided in the ne~ paragraph hereinbelow. . .
B. Z If an unpaid debt is owing to the Employer by a terminating Participant or his
Beneficiary, and the debtor refuses or neglects to pay the debt by any other'
means when due and upon <iemand, the Employer shall be entitled to collect
the amount due from the IDC Account of such debtor. The Employer shall make
no loans or advances to the Participant or Beneficiary based upon such'IDC
Accounts or un on an" other oblil1ations und",. thp p","_ 4573 .
DEFERRED COMPENSATION PLAN - Page 7
8.3 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 oi any Employee or Participant be modified or.in any way affect-:
ed thereby. .
8.4 Each Participant herein expressly agrees for himself and his Beneficiary that
he shall look solely to the gene ral as sets of the Employe r for the pa ymerit of
any such benefit to which he may become entitled under the Plan, and acknow-
ledges that all amounts deferred hereunder shall be available to satisfy the
general obligations oi Employer.
8.5 . The Plan has been adopted in the State of California and shall be construed
and gove rned and administered in compliance with all applicable State law.
B.6 Captions used in the Plan are for the purpose of convenience only, and shall
not limit, restrict or enlarge the provisions of the Plan.
8.7 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 re'presentatives.
B.8 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 UD-
less the context clearly indicates otherwise. ..
.
B.9 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 hle principle office; and, ii directed to aPartic1pant or'
'a Beneficiary, shall be sent to such Participant or Beneficiary at his last-
known address as it appears on the Emllloyer's records. Such notice shall
be deemed given when mailed.
B. lO Deductions for Participant'.s contributions to retirement associations shall be
made without reference to amounts deferred pursuant to the Plan.
8. 11 An approved leave of. absence with pay shall not affect agreements to parti-
cipate in the .Plan. .
B. lZ An approved lea:ve of absence without pay shall.be considered to be a .tem,-"
porary suspension of participation in the Plan. Participation shall be al,1to-
maticaUy reinstated as of the first day of the next Pay Period subsequent
to the termination of such leave of absence status.
4573
DEFERRED COMPENSATION PLAN - Page B
.' . .'
SECTION 9. TERMINATION OF PLAN BY EMPLOYER'
. . . ,
The Plan may be amended or terminated by the Employer at' any time, or the
Employer may, without amendiIig or terminating the Plan, ce~se to set aside
assets under the Plan. No amendment or termination of.the Plan, and no cessa-
tion of the setting aside of assets by the Employer shall reduc'e or impair the
rights oi any Participant or Beneiiciarywhich may already have accrued.
. 9~ 1 If the Plan is terminated by the Employer, the Employer may, at Employer's
.option, distribute to all Participants amounts equal to .the balance of their
roc Accounts as of the month-end following such termination.
9. Z If Employer does not elect to pay accrued benefits on. termination of the Plan,.
he ahall cease all deferrals of Compensation but payment 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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