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HomeMy WebLinkAbout5653 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" 5653 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. 1 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: 2 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 3 5653 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. 4 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 5 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- 6 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 7 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. 8 5653