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HomeMy WebLinkAbout5654 RESOLUTION NO. 5654 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA CALIFORNIA, AMENDING AND RESTATING THE CITY OF ARCADIA EMPLOYEES' DEFERRED COMPENSATION PLAN DOCUMENT WHEREAS, this Retirement Plan (hereinafter referred to as the "Plan" and known as the city of Arcadia Employees' Deferred Compensation Plan) is amended and restated by the City of Arcadia (hereinafter "Employer"). WHEREAS, the Employer established this Plan effective December 16, 1980, under the name of city of Arcadia Employees' Deferred Compensation Plan to enable employees who become covered under the Plan to enhance their retirement security by permitting them to enter into agreements with the Employer to defer compensation and receive benefits at retirement, death, separation from service, and for financial hardships due to unforeseeable emergencies; and WHEREAS, the Employer desires to amend and restate the Plan Document to effect certain changes; and WHEREAS, the Plan shall be maintained for the exclusi ve benefit of covered employees, and is intended to comply with the eligible deferred compensation plan requirements of Section 457 of the Internal Revenue Code of 1986, as now in effect or as hereafter amended, and regulations thereunder, and other applicable law; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. That the city Council amend and restate the Plan as set forth in Exhibit "A", which is attached hereto. 5654 SECTION 2. That the ci ty Clerk shall certify to the adoption of this Resolution. Passed approved and adopted 1992. 'J f Arcadia Ci .-:..,...' . STATE~OF ~ALIFORNIA ) COUNTY,OF,poy,AN9ELES ) SS: CITY OF'~~CADIA ) I, JUNE D. ALFORD, city Clerk of the City of Arcadia, hereby certify that the foregoing Resolution No. 5654 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 J f Arcadia of 5654 EXHIBIT "A" CITY OF ARCADIA EMPLOYEES' DEFERRED COMPENSATION PLAN 5654 CITY OF ARCADIA EMPLOYEES' DEFERRED COMPENSATION PLAN THE NAME of this plan is the "City of Arcadia Employees' Deferred Compensation Plan" hereinafter referred to as the "Plan." THE PURPOSE of this Plan is to enable employees of the City of Arcadia, hereinafter re'ferred to as the "Employer," to enhance their retirement security by permitting them to enter into agreements with the Employer to defer payment of a portion of their current compensation and receive benefits at retirement, death, disability, or separation from service in accordance with Sections 53212-53214 of the Government Code of the State of California and the applicable provisions of Section 457 of the Internal Revenue Code and amendments thereunder. SECTION 1. DEF I N IT IONS For the purpose of this Plan, certain words or phrases used herein will have the following meaning. 1.1 "Employee" shall mean any officer or employee of the Employer. 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. 1.3 "Participation Agreement" shall mean an agreement executed and filed by an Employee with the Employer. Such agreement shall state the Deferral amount to be withheld from a Participant' s paycheck and shall become effective no earlier than the first day of any month after it is executed. 1 5654 CITY OF ARCADIA EMPLOYEES' DEFERRED COMPENSATION PLAN 1.4 "Beneficiary" shall mean the person(s) or estate entitled to receive benefits under this Plan after the death of a Participant. 1.5 "Administrator" shall mean the Employer and/or other parties appointed by the Employer to administer the Plan. 1. & "Code" shall mean the Internal Revenue Code of I~B&, as amended and including all regulations pursuant thereto. 1.7 "Compensation" shall mean the total remuneration ~arned by an employee for personal services rendered to the Employer for the calendar year. loB "Deferral" shall mean the annual amount of compensation that a Part ici pant elect s to defer rece i pt of pursuant to a properly e~ecuted Participation Agreement. 1.~ "Includable Compensation" shall mean compensatfon for services performed for the Employer which is currently includable in gross income, but less any amounts deferred pursuant to a plan described in Internal Revenue Code Section 457 (including but not limited to this Plan) or of other applicable sections of Chapter 1 of the Code. 1.10 "Retirement" shall mean retirement from service with the Employer which becomes effective after the Participant meets the age and service requirements for retirement (including early or late retirement) specified in the applicable retire- ment policies of the Employer. 1.11 "Open Enrollment Period" shall mean any of the following 2 5654 CITY OF ARCADIA EMPLOYEES' DEFERRED COMPENSATION PLAN periods: (il) March 1 through March 31, Deferrals effect ive Apri 1 1, (b) June 1 through June 31, Deferral s effect i ye Jul y 1, (e) Sept. 1 through Sept. 30, Deferrals effectiye October 1, (d) December 1 through December 31, Deferrals effect iye January 1, and (el any other period designated by the Employer. SECTION 2. PARTICIPATION 2.1 Eligibility for Participation: Each eligible Employee may become a Participant of the Plan during an Open Enrollment Period. A new hire may enroll in the month of employment with Deferral effective on or after the first of the month follow- ing hire. 2.2 Enrollment: Eligible Employees may enroll in the Plan by compl et i ng a Part ici pat i on Agreement with the Employer and approved by the Plan Administrator or his assignee. SECTION 3. DEFERRAL OF COMPENSATION 3.1 Deferral Procedure: Pursuant to a Participation Agreement, each Participant's Deferral amount shall be deducted from his paychecks throughout the year. The Deferral a~ount shall not be included as gross income on a Participant's federal income taK withholding statement (W-2 Form). 3.2 MaKimum Deferral: (a) Primary Limitation: The Deferral amount in any taxable 3 5654 CITY OF ARCADIA EMPLOYEES' DEFERRED COMPENSATION PLAN year may not eKceed the lesser of '7,500, or 33 1/3 of the Participant's Includable Compensation (25" of gross). (b) Catch-up Limitation: In the Participant's last three (3) taKable years ending before he attains normal Retirement age, he may trigger the catch-up limitation by electing this provision. The maKimum Deferral amount for each of these three years is the lesser of '15,000, 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 taKable years in which the employee was a Participant, beginning after December 31, 1':178. The catch-up limitation is available only during one three-year period. If a Participant used this provision and then postpones his retirement or returns to work after retiring, the limitation shall not be available again. (c) Coordination with Other Plans: If a Participant par- ticipates in more than one eligible deferred compensation plan, the total deferral under all plans shall be subject to the maKimum limitations specified in this section. 3.3 Minimum Deferral: The minimum Deferral amount shall be '10 per payroll period. 3.4 Changing Deferral s: A Part ic i pant may change Deferral s duri ng any Open Enrollment Period by eKecuting a new Participation Agreement pursuant to Section 1.11. A Participant may cancel Deferrals at any time by written notice of cancellation. After cancellation, the Participant may not re-enroll until 4 5654 CITY OF ARCADIA EMPLOYEES' DEFERRED COMPENSATION PLAN the next Open Enrollment Period. SECTION 4. TIME OF BENEFIT PAYMENT 4.1 Eligibility for Payment: Payments from the Plan shall be made only upon Separat ion from Service or an approved financial Hardship. Cal "Separation from Service" means the severance of a Par- ticipant's employment with the Employer. Cbl "Hardship" means a severe financial setback of the Participant resulting from a sudden and unexpected illness or accident of the Participant or a dependent of the Participant, loss of the Participant's property due to casualty, or other similar extraordinary and un- foreseeable circumstances, arising from events beyond the Participant's control. Whether circumstances constitute an unforeseeable emergency depends on theifacts of each case, but in any case, payment may not be made to the extent that such hardship is or may be relieved -- through reimbursement or compensation by insurance or otherwise; --by liquidation of the Participant's assets, to the extent that liquidation itself would not cause severe financial hardship; or --by cessation of Deferrals under the Plan. Unforseeable emergencies shall not include the need to send a Participant's child to college, or the desire to purchase a home. 5 5654 CITY OF ARCADIA EMPLOYEES' DEFERRED COMPENSATION PLA~ 4.2 Benefit Commencement Date: Except for a Hardship withdrawal, benefit payments to a Participant shall commence &0 days after the close of the Plan Year in which Separation from Service occurs, unless the Participant or Beneficiary makes a one-time irrevocable election to defer commencement of benefits to a later date. ,A Participant or Beneficiary may elect that benefits commence on any determinable future date so long as benefits commence no later than &0 days after the close of the Plan Year in which the Part icipant attains (or would have attained) age 70 1/2; provided that, all benefits payable to a nonspouse Beneficiary must be paid in full within 15 years after the death of the Participant. In cases where the Beneficiary is a trust or estate (non-human beneficiary), distribution must be made within 5 years following the death of the Participant. SECTION 5. FORM OF BENEFIT PAYMENT 5.1 Forms of Payment: A Part ici pant or Beneficiary may elect payment in one of the following forms: (1) Lump Sum. A single payment of the entire balance in a Participant's account. (2) Annuity. Periodic payments contingent. on the life expectancy or the joint life expectancy of the Par- ticipant and Beneficiary. (3) Installments. Periodic payments over a specified period of time. This payment form must be such that payments would not exceed the term defined as life or joint life expectancy. 5.2 Failure to Elect: If a Participant or Beneficiary fails to & 5654 CITY OF ARCADIA EMPLOYEES' DEFERRED COMPENSATION PLAN elect a form of payment before 30 days preceding the benefit commencement date, the account shall be paid in a lump sum. SECTION 5. BENEFICIARIES 5.1 Designation: A Participant shall have the right to designate a Beneficiary, and amend or revoke such designat ion at any time, in writ ing. Such designat ion, amendment or revocat ion shall be effective upon receipt by the Plan Administrator. A Participant who elects a joint and survivor annuity form of payment may not change his joint annuitant after payments commence. '. SECTI ON 7. PLAN ADMINISTRATION 7.1 Plan Administrat ion: The Plan shall be administered by the City of Arcadia Finance Director. The Plan Administrator shall have responsibility for the operation and administration 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. 7.2 Ownership of Assets: All amounts deferred under this Plan, all property and rights purchased with such amounts, and all income attributable to such amounts, property or rights shall remain (until made available to the Participant or Benefici- ary) solely the property and rights of the Employer and shall be subject to the claims of the Employer'S general creditors. 7.3 Plan-to-Plan Transfers: The distribution of the amount 7 5654 CITY OF ARCADIA EMPLOYEES' DEFERRED COMPENSATION PLAN deferred by a former Participant of this Plan upon Separation from Service may be automatically transfered to another Eligible Deferred Compensation Plan, of which 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 with the Employer in order to accept employment with another "eligible" ent i ty. This Plan will accept the transfer of amounts previously deferred by a Participant under another Eligible Deferred Compensation Plan. 7.4 Account s and Expenses: The Employer ;hal1 establ i sh and maintain accounts on behalf of each Participant. Accounts shall be valued at least quarterly and each Participant shall receive written notice of hi; account balanc~ following such valuation. Account balances shall reflect~' the Deferral amount, any earnings attributable to such amount, and shall be reduced by administrat ive, investment and other fee;, in such amounts and at such times as the Plan Administrator deems necessary for the maintenance of this Plan. SECTION 8~ AMENDMENT AND TERMINATION 8.1 Amendment: The Employer shall have the right to amend this Plan, at any time and from time to time, in whole or in part. 8.2 Termination: Although the Employer has established this Plan with a bona fide intention and expectation to maintain the 8 5654 CITY OF ARCADIA EMPLOYEES' DEFERRED COMPENSATION PLAN Plan indefinitely, the Employer may terminate or discontinue the Plan in whole or in part at any time without any liability for such termination or discontinuance. Upon Plan termina- t ion, all Deferrals shall cease. The Employer shall retain all Deferrals until each Participant Separates from Service or incurs a Hardship and benefits commencce under Sections 4.1 and 4.2, in the form determined under Section 5. SECTION 9. MISCELLANEOUS 9.1 Limitation on Assignment: Benefits under this Plan may not be assigned, sold, transferred, or encumbered, and any attempt to do so shall be void. A Part icipant' 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. 9.2 Representations: The Employer does not represent or guarantee that any particular federal or state income, payroll, personal property or other taN consequence will result from participa- tion in this Plan. A Participant should consult with profes- sional taN advisors to determine the taN consequences of his participation. Furthermore, the Employer does not represent or guarantee successful investment of Deferrals, and shall not be required to repay any loss which may result from such investment or lack of investment. 9.3 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 effect ive. 9 5654 CITY OF ARCADIA EMPLOYEES' DEFERRED COMPENSATION PLAN 9.4 Applicable Law: with applicable Cal i forn ia. This Plan shall be construed in accordance federal law and to the laws of the State of 9.5 Gender: As ,used in the Plan, the masculine, feminine or neuter gender, and the singular or plural number shall each be deemed to include the others unless the context clearly indicates otherwise. 10 5654