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HomeMy WebLinkAbout3040_CCv0001.pdf RESOLUTION NO. 3040 RESOLUT10N OF THE COUNCIL OF THE CITY OF REDLANDS APPROVING AN EMPLOYEES' DEFERRED COMPENSATION PLAN AND AUTHORIZING ITS IMPLEMENTATION. The Council of the City of Redlands does hereby resolve as follows: Section 1. The Employees' Deferred Compensation Plan attached to this resolution, marked Exhibit "A" , and by such reference incorporated herein, is adopted. The City Treasurer, with the assistance of the Finance Director, is authorized to implement said Plan. The City consents to the Plan and assumes the obligations to be performed on its part as set forth in said Plan. Section 2 . The Plan shall be operative immediately but shall apply only to the compensation earned by a participating employee after the date he files a written declaration to participate. The City consents to the participation of any employee of the City, such participation to be in accordance with the participating employee' s Participation Agreement. Section 3 . The City Clerk shall certify to the adoption of this resolution and shall cause this resolution and said certification to be entered in the Official Records of the Council of this City. ADOPTED, SIGNED AND APPROVED this 17th day of April, 1973 . ( # vice ay 0 r>111�f e d 1 d/ ATTEST: —71 -E41-del e rk APPROVED AS TO FORM AND CONTENT City Attorn' EMPLOYEES ' DEFERRED COMPENSATION PLAN I. PURPOSE This Employees' Deferred Compensation Plan ("the Plan") is designed to permit employees of the City of Redlands to defer a portion of their compensation and to provide for retirement, disability and death benefits. DEFINITIONS A. "The City" means the City of Redlands. B. "Participant" means a full-time employee of the City who elects to defer a portion of his compensation under this Plan. C. "Beneficiary" means any person, trust, corporation or firm, or any combination of the foregoing, designated by a Participant to receive benefits under the Plan. Any such desig- nation shall be by written instrument filed with the City and shall be revocable unless otherwise provided in such instrument. If a participant does not file a Beneficiary designation with the City, his Beneficiary shall be the estate of such Participant. EXHIBIT A ELECTION TO BECOME A PARTICIPANT Each employee of the City who desires to become a Parti- cipant in the Plan shall file a written election with the City. The election shall become effective with respect to compensa- tion payable to the electing employee for services rendered to City during the calendar year, or portion thereof during the year of inception of this Plan, following the date of the Parti- cipant' s election, and shall remain effective for a minimum of one year. The election shall thereafter continue in full force and effect unless revoked or changed by the Participant by written notice to the City at least Sixty (60) days prior to the commencement of the calendar year for which the revocation or change is to be effective. The election shall specify the amount, by dollar amount or by percentage of compensation, which is to be deferred pursuant to the Plan and withheld monthly out of the compensation otherwise payable to the Participant. Such deferred amount shall not exceed seventy-five percent (75%) of such Com- pensation or be less than two percent (21%) of such compensation, and shall in no event be less than Two Hundred Dollars ($200.00) annually, prorated to December 31, 1972 . Upon revocation of the -2- election to defer income, the City may, at its option, make payments of an amount equal to the balance of the Participant' s Book Account as of the month-end following such revocation, to the Participant pursuant to Section VI.A of this Plan, or may elect to retain such amount in his Book Account and continue the Participation of Participant as to amounts already deferred. IV. INVESTMENT ACCOUNTS The City shall establish for each Participant an account ("Investment Account") to provide a convenient method of measuring its obligations to the Participant under the Plan. The City shall invest in such Account amounts equal to the compensation deferred by the Participant under this Plan. The assets of the Account shall be invested in such investments as the laws of the State of California may allow. The investment Account shall at all times remain a part of the general assets of the City and shall remain available for the payment of City debts. Neither the existence of the Plan nor the Investment Account shall be deemed to create a trust and the City shall at all times be the legal and beneficial owner of all assets of the Investment Account. Neither the existence of the Plan nor the Investment Account shall entitle any Participant, the -3- Beneficiary of any Participant or a creditor of any Participant to a claim or lien against the assets of the Investment Account. The Participant and his Beneficiary shall have only the right to receive the benefits payable under the Plan. V. ALLOCATION TO BOOK ACCOUNTS The City shall maintain a book account ("the Book Account') for each Participant, to which it shall credit an amount equal to the deferred income of the Participant. The Participant' s Book Account shall further be credited monthly with earnings, gains, or losses applicable thereto, which have been earned by the Participant ' s investment Account during the preceding month. Vi . BENEFITS A. Termination of Services. Upon the termination of the employment of a Partici- pant, other than by his death, the City shall pay to the Parti- cipant consecutive monthly payments for a number of months not less than six (6) and not more than 180, the first of such pay- ments to be made not later than sixty (60) days after the date -4- of such termination, shall be an amount equal to the balance of the Participant' s Book Account as of the month-end following such termination, plus any interest accruing during the periodic payments to the Participant. B . Death Before Termination of Service. In the event of the death of a Participant while he is an employee of the City, the City shall pay to the Participant' s Beneficiary: 1. Consecutive monthly payments for a number of months not less than 6 and not more than 180, the first of such payments to be made not later than 60 days after the Participant' s death. 2 . A single payment, such payment to be made not later than 60 days after the date of the Participant' s death. 3 . The sum of any benefits or combination of benefits specified in subparagraphs 1 or 2 shall be an amount equal to the balance of the Participant' s Book Account as of the month-end following the death of the Participant plus accrued interest during period of payments; provided, however, that the sum of any benefits paid to the Participant' s Beneficiary shall not exceed such balance reduced by any benefits paid to the Participant in. accordance with the provisions of Section. I.D hereof. C. Death Following Termination of Services. In the event of the death of the Participant following the termination of his services with the City, the City shall pay to the Participant' s Beneficiary an amount equal to the balance of the Participant ' s Book Account as of the month-end following such termination of services, such amount to be paid, pursuant to the City ' s election, in one of the ways specified in Section VI .B above; provided, however, that the sum of any benefits paid to the Participant' s Beneficiary shall not exceed such balance reduced by any benefits paid to the Participant in accordance with the provisions of Section VI.A or VI.D hereof. D. Disability In the event of the total disability of a Participant while he is an employee of the City, the City shall pay to the Participant an amount equal to the balance of the Participant 's Book Account as of the month-end following the City' s deter- mination of such disability, as specified in Section VI.A above. In the event of the partial disability of a Participant, the City may pay to the Participant such benefits as the City may determine. For the purposes of this Section VI.D: 1. A participant shall be considered to be totally disabled if he is unable to engage in any substantial gainful -6- activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or to be of long-continued and indefinite duration, and 2 . A Participant shall be considered to be partially disabled if he is not able to engage in his normal business activities for the City by reason of any medically determinable physical or mental impairment which can be expected to continue for more than six months and which does not constitute total disability. The City may require the Participant to furnish a written statement of a duly licensed physician as an aid to the City in establishing that the Participant is disabled, but any deter- mination of a Participant' s disability, total or partial, shall be at the discretion of the City. E. Other Distributions. Notwithstanding any other provisions of the Plan, the City, in its discretion, may at any time discharge in full its obligations under the Plan to any Participant by distributing to the Participant, or following the death of the Participant by distributing to his Beneficiary, an amount equal to the balance of the Participant' s Book Account as of the month-end immediately preceding such distribution, in accordance with the provisions of Sections VI.A or VI.B hereof, as the case may be. VII. ADMINISTRATION OF THE PLAN The Plan shall be administered by the City Treasurer under the direction of the City Council. At the discretion of the City Treasurer, any or all amounts in the Investment Accounts may be paid over and delivered to a bank or trust company. , a saving and loan association, or an employee credit union ("the Custodian") to be held by it in custodial accounts. The custodial agreements establishing such custodial accounts shall provide: A. That the investment of all amounts in the Investment Accounts, including earnings on such amounts and the proceeds of any sale or disposition of assets thereof, shall be made according to instructions of the City. B. That the owner of record of all amounts delivered to the Custodian pursuant to this Section VII shall be the City. C. That the Custodian shall hold all certificates, annuity policies, and other documents evidencing ownership of the assets of the Investment Accounts and shall maintain such records, in- cluding records for the Investment and Book Accounts of each Participant, as may be agreed upon from time to time by the City and the Custodian. D. That the Custodian shall furnish the City no less frequently than quarterly with written reports showing the fair market values of the Investment Accounts and the amounts credited to each Participant' s Book Account. VIII . RIGHTS OF PARTICIPANTS Each participant shall be deemed to have assented to all of the terms and conditions of the Plan. No Participant may sell, transfer, assign, hypothecate, or otherwise dispose of all or any part of his Investment Account or Book Account or any right which he may have under the Plan. Each Participant shall have the right to designate a Beneficiary, including a Contingent Beneficiary, to receive any benefits which may be payable under the Plan upon the death of such Participant. Each Participant may request the City to make distribution of benefits to such Participant or his Beneficiary in any manner authorized in this Plan. IX. AMENDMENT AND TERMTNATION This Plan may be amended or terminated by the City at -9- any time, or the City may, without amending or terminating the Plan, cease to set aside assets under the Plan. -No amendment or termination of the Plan and no cessation of the setting aside of assets shall reduce or impair the rights of any Participant or Beneficiary which may have already accrued. Upon termination of the Plan, the City shall distribute to all participants amounts equal to the balance of their Book Accounts-_as of the month-end following such termination pursuant to any of the provisions of Section VI.A of this Plan. X. MISCELLANEOUS A. The Plan shall not be construed as giving any Participant any right to continue his employment with the City. B. The Plan has been adopted in the State of California and shall be construed and governed in all respects under and by the laws of said State. C. The captions used in the Plan are for the purpose of convenience only and shall not limit, restrict or enlarge the provisions of the Plan. D. The Plan shall be binding upon and shall inure to the benefit of the City, its successors and assigns, all l.0-_ Participants and Beneficiaries and their heirs and legal representatives. E. 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. F. Any notice or other communication required or per- mitted under the Plan shall be in writing and, if directed to the City, shall be sent to the City Treasurer at his principal office, and, if directed to a Participant or to a Beneficiary, shall be sent to such Participant or Beneficiary at his last known address as it appears on the City' s records. G. Deductions for employee contributions to retirement associations shall be made without reference to amounts deferred pursuant to this Plan, and shall be based upon the gross salary a Participant would receive if he had not elected to defer income. BENEFICIARY DESIGNATION UNDER THE EMPLOYEES ' DEFERRED COMPENSATION PLAN WHEREAS, is a Participant in the Employees' Deferred Compensation Plan of the City of Redlands, adopted by resolution of the Council of the City of Redlands on ; and WHEREAS , said Plan provides for a designation of Beneficiaries by Participants' NOW, THEREFORE, Participant hereby designates the following person, trust, corporation or firm, or combination of the foregoing, as his Beneficiary to receive all benefits under the Plan: BENEFICIARY: (Name and Address) CONTINGENT BENEFICIARY: (Name and Address) Participant EMPLOYEE 'S PARTICIPATION AGREEMENT THIS AGREEMENT, made and entered into this day of 1# 19_, by and between the CITY OF REDLANDS, a municipal corporation, (hereinafter referred to as "City" ) , and (hereinafter referred to as "Employee" ) : WITNESSETH: WHEREAS, City is desirous of permitting employees of the City to defer a portion of their compensation, and WHEREAS, City has approved by resolution a deferred compensation plan for all employees; and WHEREAS, Employee has earnable annual compensation, the amount of which is on file in the Office of the Finance Director, and is desirous of deferring a portion of such compensation equal to NOW, THEREFORE, in consideration of the premises of other covenants and conditions hereinafter contained to be kept and performed by the respective parties hereto, IT IS MUTUALLY AGREED AS FOLLOWS: Section 1. Employee hereby elects to become a participant under the Employees' Deferred Compensation Plan, adopted by resolution of the Council of the City of Redlands on which Plan is hereby incorporated by reference herein, and Employee further elects to defer percent %) of his annual compensation or ($ annually, in accordance with Section III of the Plan. Employee waives any claim to such deferred amounts except as he shall be entitled to receive them under the terms of the Plan. Section 2. This Agreement shall become effective with respect to compensation payable to Employee for services rendered to City during the calendar year, or portion thereof during the year of inception of the Plan, following the date of this Agreement. In no event shall this Agreement apply to compensation earned and payable before the date of this Agreement. This Agreement shall remain effective and continue in force until revocation or alteration in the amount of deferral is requested by the Employee. A request for revocation or alteration in the amount to be deferred shall be provided by the Employee to the City at least sixty (60) days prior to the date revocation or alteration is intended to be effective. Section 3. Employee may not sell, transfer, assign, hypothecate or otherwise dispose of all or any part of this Agreement or any rights hereunder except as provided herein. Section 4. Employee shall have the right to designate a Beneficiary, including a contingent Beneficiary, to receive any benefits which may be payable under the Plan upon the death of Employee. -2- Section 5. This Agreement shall not be construed as giving Employee any right to continue his employment with the City. Employee agrees, however, that during the term of his employment with City, he will continue to devote his ability and energy in an efficient and trustworthy manner to the service of the City. Section 6. This Agreement has been entered into in the State of California and shall be construed and governed in all respects under and by the laws of said State. Employee -3-