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Resolution No. 5653
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA ADOPTING A DEFERRED COMPENSATION PLAN DOCUMENT
FOR PART-TIME, SEASONAL AND TEMPORARY EMPLOYEES
WHEREAS, the City of Arcadia adopted Resolution No. 5639,
approving a deferred compensation plan for part-time, seasonal and
temporary employees, pursuant to and in compliance with Section
3121 (b) (7)(F) and 457 (b) of the Internal Revenue Code of 1986,
and
WHEREAS, the city desires to establish a Deferred Compensation
"Plan" Document for its part-time, seasonal and temporary
employees.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1.
That the City Council adopt a Plan Document as
set forth in Exhibit "A" which is attached hereto.
SECTION 2.
That the city Clerk shall certify to the
adoption of this Resolution.
Passed approved and adopted this 7th day of April 1992.
Xf:5tA~
Mayor of the city of Arcadia
ATTEST:
cit
of Arcadia
5653
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. 5653 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 7th day of April, 1992 and that said
Resolution was adopted by the following vote, to wit:
AYES: Councilmember Ciraulo, Fasching, Harbicht, Young and Gilb
NOES: None
ABSENT: None
ci
Arcadia
5653
EXHIBIT "A"
CITY OF ARCADIA
DEFERRED COMPENSATION PLAN
"PART-TIME. SEASONAL. TEMPORARY"
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C!TV OF ARCAD I A
DEFERRED COMPENSATION PLAN
"PART-TIME. SEASONAL. TEMPORARV"
This Deferred Compensation Plan "Part-time, Seasonal, Temporary"
was established and adopted by the City of Rrcadia as of January 1,
1992, for the benefit of its Eligible Employees.
THE NRME of this Plan is the City of Rrcadia Deferred Compensa-
tion Plan -- "Part-time, Seasonal, Temporary" hereinafter referred to
as the "Plan."
THE PURPOSE of this Plan is to establish and operate a "retir-
ement system" satisfying the requirements of Section 3121 (b) (7) (F) and
457(b) of the Internal Revenue Code of 198& and corresponding
provisions of the Social Security Rct. This shall be accomplished
by the use of a deferred compensation plan.
SEcn ON 1.
DEF INIT IONS
For the purpose of this Plan, certain words or phrases used
herein will have the following meaning.
1.1 "Eligible Employee" shall mean any person employed by the
City of Rrcadia (the Employer) who is not eligible to
participate in the Public Employees' Retirement System.
1.2 "Participant" shall mean an employee or former employee who
is or has been enrolled in the Plan and who retains the
right to benefits under the Plan.
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5653
CITY OF ARCADIA DEFERRED COMPENSATIONPLAN
"PART-TIME, SEASONAL, TEMPORARY"
1.3 "Pa..ticipation Account" shall mean the book account fo.. each
employee to which is c..edited the Pa..ticipant's Deferred
Compensation togethe.. with any inte..est.
1.4 "Pa..ticipation Ag..eement" shall mean the written ag..eement
el<ecuted and' filed by an Eligible Employee with the
Employe...
1.5 "Beneficia..y" shall mean the pe..son(s) 0.. estate entitled
to ..eceive benefits unde.. this Plan afte.. the death of a
Pa..ticipant.
1.E> "Administ..ato.." shall mean the.Employe.. and/o.. other parties
appointed by the Employer to administe.. the Plan.
1. 7 "Compensat ion" shall mean the total ..emune..at ion ea..ned by
an Eligible Employee fo.. pe..sonal se..vices ..ende..ed to the
, Employer for the calendar year without ..eduction for any
amount defe....ed.
1.8 "Defe....al" shall mean the annual amount of compensation that
a Part icipant elects to defe.. ..eceipt of pu..suant to a
prope..l y .e>lecut ed Pa..t i ci pat i on Agreement. Such Deferra I
shall amount to not less than 7.5~ of Compensation no.. mo..e
than $7,500 in any calenda.. yea...
1.~ "Enrollment Pe..iod" shall mean the fi..st day 0' employment
for newly Eligible Employees and Janua..y I, lQQ2, fo..
cu....ently Eligible Employees.
1. 10 "Normal Reti..ement Age" shall mean the ea..lie.. of:
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5653
CITY OF ARCADIA DEFERRED COMPENSATIONPLAN
"PART-TIME, SEASONAL, TEMPORARY"
(al Age 70 1/2; or
(b) The age at which retirement distributions normally first
commence far Social Security purposes.
SECTION 2. PARTICIPATION
2.1 Eligibility far Participation. Each Eligible Employee shall
became a Participant of the Plan by completing a Participa-
tion Agreement with the Employer. Participation Agreements
are effective immediately and shall continue and remain in
full farce for the full term of employment with the City of
Arcad i a.
2.2 Amount of Deferral. Each Part icipant of the Plan shall
defer an amount equal to 7.5" of Compensation for all
calendar years in which the Participant is an Eligible
Employee.
2.3 Limitation of Deferral of Compensation. No Participant may
defer under the Plan during a taxable year more than the
lesser Q.f.:
(al Seven Thousand Five Hundred Dollars (.7,5001: or
(bl An amount equal to 7.5" of total Compensation.
2.4 Participants in more than one Deferred Compensation Plan.
A Participant who participates in more than one deferred
compensation "type" plan, whether or not maintained by the
Employer, must allocate the dollar 1 imitat ion among the
plans.
SECTION 3. PLAN ADMINISTRATION
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CITY OF ARCADIA DEFERRED COMPENSATIONPLAN
"PART-TIME, SEASONAL, TEMPORARY"
3.1 Deferred Compensation Fund. The City of Arcadia shall
establish a deferred compensation fund entitled "City of
Arcadia Deferred Compensat ion Part-t ime, Seasonal,
Temporary Fund" to which all deferred contributions shall
be credited at such times as the compensation would have
been payable to individual employees if not a participant
of the Plan.
3.2 Plan Administration. The Plan shall be administered by the
City of Arcadia Finance Director. The Plan Administrator
shall have responsibility for the operation and administra-
t ion of the Plan and shall have the power to delegate
ministerial duties and employ such outside professionals
as may be required for prudent administration of the Plan.
3.3 Accounts and EKpenses. The Employer shall establish and
maintain accounts on behalf of each Particip~nt. Accounts
shall be valued at least quarterly and each .Participant
shall receive written notice of his account balance
following such valuation. Account balances shall reflect
the Deferral amount amd any earnings attributable to such
amount. The Employer shall incur all administrative cost
associated with this Plan.
3.4 Ownership of Assets. All amounts deferred under this Plan,
all property and rights purchased with such amounts, and all
incolle attributable to such amounts, property or rights
shall remain (until made available to the Participant or
Beneficiary) solely the property and rights of the Employer
and shall be subject to the claims of the Employer's general
creditors.
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5653
CITY OF ARCADIA DEFERRED COMPENSATIONPLAN
"PART-TIME, SEASONAL, TEMPORARY"
3.5 Plan-to-Plan Transfers. The distribut ion of the amount
deferred by a former Participant of this Plan upon
separation may be automatically transfered to another
Eligible Deferred Compensation Plan, of ....hich the former
Participant has become a Participant, if:
(a) the Plan receiving such amounts provides for their
acceptance, and
(bl a Participant separates from service ....ith the Employer
in order to accept employment ....ith another "eligible"
entity, or
(c) a Participant ....ho is no longer an Eligible Employee
becomes a Participant in another deferred compensation
plan administered by the City of Arcadia.
This plan ....ill not accept the transfer of amounts previously
deferred by a Participant under another deferred compensation plan.
SECTION 4.
DISTRIBUTION OF BENEFITS
4.1
Eligibility
made only
t erminat ion,
for Payment: Payments from the Plan shall be
upon separation from service because of
retirement, disability, or death.
4.2 Payout Options. In the event of a Participant's Separation
fro. Service, the balance of the Participant's Participation
Account shall be distributed to the Participant in anyone
or 1II0re of the follo....ing methods elected by the Participant,
subject to the Employer's discretion:
(1)
Lump sum payment.
cash payment.
The total balance payable in one
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5653
CITY OF ARCADIA DEFERRED COMPENSATIONPLAN
"PART-TIME, SEASONAL, TEMPORARY"
(2) Payments for a specified period. Annual, semi-annual,
quarterly, or monthly payments to Participant over a
term not to exceed the life expectancy of the
Participant.
4.2 Election to postpone payout. Upon separation from service
where Participant's Account exceeds $3,500, Participant may
request that the Employer withhold the payment of benefits
until no later than sixty (60) days after the close of the
year in which such Participant reaches Normal Retirement
Age.
4.3 DeMinimis Accounts. Participation Accounts totaling less
than $3,500 shall be distributed to a Participant who has
separated from service. The Employer shall effect this
distribution after at least 90 days from separation date.
4.4 Failure to Elect. If a Participant or Beneficiary fails to
elect a form of payment before 30 days preceding the benefit
commencement date, the account shall abe paid in a lump sum.
4.5 Death of Participant in service. In the event of death of
the Participant while employed, the Employer shall commence
payment of benefits after having received a Certified copy
of the Death Certificate of Participant.
4.6 Changes in Distributions. The Employer may at any time
change the time or methods of distribution of benefits under
the Plan. The Employer may, at its discretion, discharge
in full its obligations under the Plan to any Participant,
or following the dea'th of the Participant, to the Par-
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5653
CITY OF ARCADIA DEFERRED COMPENSATIONPLAN
"PART-TIME, SEASONAL, TEMPORARY"
ticipant's Beneficiarylsl, by distributing an amount equal
to the baiance of the Participant's Participation Account.
4.7 Participant Re-Employment Prior to Commencement of Dis-
tribution. Any pending election of distribution will become
void if the Participant becomes re-employed with the City;
however, once distribution has commenced, it is irrevocable.
SECTION 5. BENEFICIARIES
5.1 Designat ion. A Part icipant shall have the right to
designate a Beneficiary, and amend or revoke such designa-
tion at any time, in writing. Such designation, amendment
or revocation shall be effective upon receipt by the Plan
Administrator.
SECTION &. AMENDMENT AND TERMINATION
&.1 Amendment. The Employer shall have the right to amend this
Plan at any time and from time to time in whole or in part.
&.2 Terminat ion.
Although the Employer has established this
Plan with a bona fide intention and eMpectation to maintain
the Plan indefinitely, the Employer may terminate or
discoritinue the Plan in whole or in part at any time without
any liability for such termination or discontinuance. Upon
Plan termination, all Deferrals shall cease. The Employer
shall retain all Deferrals until each Participant separates
from service and benefits commence.
SECTION 7. MISCELLANEOUS
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5653
CITY OF ARCADIA DEFERRED COMPENSATIONPLAN
"PART-TIME, SEASONAL, TEMPORARY" -
7.1 Limitation on Assignment. Benefits under this Plan may not
be assigned, sold, transferred, or encumbered.
A Par-
ticipant's or Beneficiary's interest in benefits under the
Plan shall not be subject to debts or liabilities of any
kind and shall not be subject to attachment, garnishment or
other legal process.
,
7.2 Severability. If a court of competent jurisdiction holds
any provisions of this Plan to be invalid or unenforceable,
the remaining provisions of the Plan shall continue to be
fully effective.
9.3 Applicable Law. This Plan shall be construed in accordance
with applicable federal law and to the laws of the State of
California.
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