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Home My WebLink About6023 RESOLUTION NO. 6023 A RESOLUTION OF TIlE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, AMENDING THE CITY OF ARCADIA DEFERRED COMPENSATION PLAN WHEREAS, the City of Arcadia (hereinafter referred to as "Employer") has employees rendering valuable services; and WHEREAS, the Employer has established a deferred compensation plan for such employees that serves the interest of the Employer by enabling it to provide reasonable retirement security for its employees, by providing increased flexibility in its personnel management system, and by assisting in the attraction and retention of competent personnel; and WHEREAS, the Employer has determined that the continuance of the deferred compensation plan will serve these objectives; and WHEREAS, amendments to the Internal Revenue Code have been enacted that require changes to the structure of and allow enhancements of the benefits of the deferred compensation plan. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION I. The City of Arcadia hereby amends the City of Arcadia Deferred Compensation Plan by adopting those changes as set forth in the attached Exhibit "A". 1 SECTION 2. That the City Clerk shall certifY to the adoption of this Resolution. Passed, approved and adopted this 2nd day of December , 1997. //~ Mayor of the City of Arcadia ATTEST: ~(~(/J~_~ . y Clerk APPROVED AS TO FORM: ?!J.J.I ~ City Attorney 2 6023 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS: CITY OF ARCADIA ) I, JUNE D. ALFORD, City Clerk of the City of Arcadia, hereby certify that the foregoing Resolution No. 6023 was passed and adopted by the City Council of the City of Arcadia, signed by the Mayor and attested to by the City Clerk at a regular meeting of said Council held on the 2nd day of December, 1997 and that said Resolution was adopted by the following vote, to wit: A YES: Councilmember Chang, Kovacic, Kuhn, Young and Harbicht NOES: None ABSENT: None 3 6023 Amendments made for the original City of Arcadia Employee's Deferred Compensation Plan are as follows (additions are in italics, deletions are crossed): Section 1.6 Code: The Internal Revenue Code of 1986, as amended and including all regulations pursuant thereto, including a portion of the Small Business Job Protection Act of 1996. Section 1.11 Open enrollment Period: .(I.R)' sf tRll fQlIswiRSj ,911Fisllll: (a) ~1ar:sR 1 tl:l~gygl:l ~~:ar:~l:Il1, Csf9rralt g#QQtjug ^pril1 , (b) JWR9 1 J UU9WgR JWR9 JO, ggkarralt 9#Q~ti"g IYly 1, (~) ~1l,9t 1 tRrsuSjR ~1l,9t JQ, O'ilf9rFillllllffg.ti"'il O.tsg'ilr 1, (61) 09~9FRggr 1 tl:lrgygl:l CSS9FRgOr 11, Qgfgr;r~l& 9ff9stiv9 JaRuaP,t1 J ~Rg (0) ~R~' 9tl:lOf por:iod 9ot;:igRatgg by tR9 ISmplgy,n Enrollment is available at any time during the year. Section 3.2 Maximum Deferral (a) Primary Limitation: The Deferral amount of any Plan year may not exceed the lesser of $7,500 (indexed for inflation under the Small Business Job Protection Act rules) or 33 1/3 percent of Includible Compensation for the Plan year. Participant's contributions are limited to 25% of his or her total compensation including deferred compensation. - (b) CatCh-up Limitation: . . . The maximum Deferral amount for each of these three years is the lesser of $1li,QQQ_$7,500, plus the indexed yearly Deferral amount or the primary limitation amount determined in (a) above for the current year plus so much of the primary limitation amount that was not utilized in prior taxable years in which the employee was eligible to participate, beginning after December 31, 1978. Section 3.3 Minimal Deferral: The minimum Deferral amount shall be-$4Q $5 per payroll period. Section 3.4 Changing Deferrals: . . . After cancellation, the Participant !'Ray FIg! r9 9Flrgll \,IFltil tR'iI Fl9J~ 0119Fl iiiFlrgll1'Fl9F1t P9Figll May re-enroll at any time. Except for cancellation the change would take effect on the first paycheck of the following month. Section 3.5 Investment of Deferrals: The investment of the Deferrals is the sole responsjbility of the Participant. The trust shall have the right to determine the Deferred Compensation Plans available and to contract for seNices from said providers. The Participant shall then have the sole responsibility to invest those funds in the individual account. -1- EXHIBIT "A" Section 4.2 Benefit Commencement Date: .. IoIFll9GG tl::i9 ~aFti~jF/aFlt gr a9Fle~~ia~ r:Rak9t: Q QRQ tir:R9 irr;9"9~abI9 919~tigR to ggfQr '9r:;U=R9RG9r:R9Rt unless the Participant or Beneficiary makes an election to defer commencement of benefits to a later date Section 4.2.. . . 15 years after the death of the Participant. The Participant may elect to defer the commencement of distribution of benefits to a fixed determined date later than the date described above, but not later than April 1 of the year following the year of retirement or attainment of age 70 Y2, whichever is later, provided (a) Such election is made after the 61'1 day following Separation of SeNice and before the commencement of distributions and (b) the Participant may make only (1) such election. Section 4.3 Employers or Plan Participants may initiate the distribution of small accounts with balances of $3, 500 or less that have not received contributions for at least two (2) years. Section 7.2 Ownership of Assets: .. .Beneficiary) Ggl'ill~' Il::ie F/F'ilF/9Flj ai'll;! Fi!jl::itl> gt tl::ie SmplQj9f ilRQ tRail 129 t~9j9St t9 iRe slair:R& sf 1R9 Br:RpI9)'9r't gORorAI ~r9gitgn; in a (tax exempt) trust hereby created to hold all assets of the Plan for the exclusive benefit of the Participants and Beneficiaries, except that expenses (including but not limited to fees for investment, legal, accounting and custodial seNices) and taxes may be paid from the Trust 'i9~igR 7.; E"lpl9j9r liAbility' It it i1RtisipatgQ 1Rat 1R9 Er:Rplgygr't iR"9ttR:U1Rtt "'ith P~tP9~t t9 A P:;u;tisipaRt wm S9Rf,Qr;;R t9 fRe iR"6n:tR=lQRt pr:9f.8r9Rs9 tp9sifigd iR tR~ PJRisip:;IRt't ^Sr:99J;l9Rt, byt r;ll~tRiRS R9r:9iR tRail 129 S9Rttr;<JJ99 t9 r:9qyjr;g tR9 Er:RpI9~rtlr t9 r:R:ak9 4IRj p:ar,;f:isylar iR"9ttm9Rt sf :a P:ar;;ti~ip:~u::tt't 09fQr~d C'9r:Rp9Rtati9R. -2- EXHIBIT ~'A"