HomeMy WebLinkAbout3106_CCv0001.pdf RESOLUTION NO. 3106
RESOLUTION OF THE COUNCIL OF THE CITY OF REDLANDS APPROVING
AN EMPLOYEES ' DEFERRED COMPENSATION PLAN AS OUTLINED BY THE
INTERNAL REVENUE SERVICE, AUTHORIZING ITS IMPLEMENTATION AND
RESCINDING RESOLUTION NO, 3040
WHEREAS, the City Council did approve an Employees ' Deferred
Compensation Plan on April 17, 1973, and
WHEREAS, the City Treasurer, with the assistance of the
Finance Director, was authorized to implement said Plan, and
WHEREAS, the employees of the City desire to participate in
this Plan, and
WHEREAS, the Internal Revenue Service recommended certain
changes that have now been incorporated in the Plan marked
Exhibit "A" and attached hereto,
NOW THEREFORE BE IT RESOLVED.-
That the City consents to the Plan as outlined in the attach-
ment hereto, and assumes the obligations to be performed on its
part as set forth in said Plan;
That 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;
That the City Treasurer, with the assistance of the Finance
Director, is authorized to implement said Plan,-
That 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 (as outlined in
Exhibit "A") .
BE IT FURTHER RESOLVED:
That Resolution No. 3040 is hereby rescinded.
1974.ADOPTED, SIGNED AND APPROVED this 16th day of April
ATTEST: 06r of the City ofXedlands
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APPRO R_FORM'
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Address any reply to, P.O. Pox 231,Los Angeles,Calif.9d053
Internal Revenue Service,
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41.2.-PG;.CED(213.)688-417-`
City of Redlands
Att: Mr. Ti. L. Archbold
P, 0. Box 280
Redlands, California 92373
IA:lT:74-6
451
Gentlemen:
This i
r
City of Redlands _ 2
co[Mit, or attempt to cowrait, such a prohibited act , the City is
relieved of all liability under the plan.
Based solely on the teras of the plan, it is concluded that neither
the amounts deferred on behalf of any participant nor any investment
earnings attributable to such deferred amounts constitute taxable
income to the participant. Income will. be realized only at such
tiMe as money is actually rececfved or otherwise made subject to
the direction and control of a participant or his hene`iclary.
This is a determination letter.
Very truly yours,
District Director
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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.
II.
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
III .
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 Flan, 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 (2%) of such compensation,
and shall in no event be less than Two Hundred Dollars ($200.00)
annually, prorated to December 31, 1973. A participant' s
election to revoke shall apply only to future deferrals as pro-
vided
ro--v .ded above and any amounts already accumulated shall remain with
the City until the happening of an event described in Article LSI .
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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
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")
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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 he credited monthly with earnings,
gains, or losses applicable thereto, which have been earned by
the Participant ' s Investment Account during the preceding month.
V1 .
BENEFITS
A. Termination of Services.
Upon the termination of the employment of a Participant,
other than by his death, the City, in its sole discretion, shall
pay to the Participant consecutive monthly payments for a number
of months not less than six (6) and not more than one hundred
eighty (180) , the first of such payments to be made not later
than sixty (60) days after the date 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, in its sole discretion, shall
pay to the Participant ' s Beneficiary:
1. Consecutive monthly payments for a number of
months not less than six (6) and not more than one hundred eighty
(180) , the first of such payments to be made not later than sixty
(60) days after the Participant' s death.
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2 . A single payment, such payment to be made not
later than sixty (60) days after the date of the Participant ' s
death.
3. The sum of any benefits or combination of benefits
specified in subparagraphs I 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 Partici-
pant in accordance with the provisions of Section VI.D hereof.
C. Death Followin2 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
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.
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
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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 instruction of the City.
B. That the owner of record of all amounts delivered
to the Custodian pursuant to this Section Vil shallbe 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. Invest ment 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. Should a participant
commit, or attempt to commit, such a prohibited act, the City
is relieved of all liability 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 TERMINATION
This Plan may be amended or terminated by the City at
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 say 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.
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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
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 prinicipal
office, and, if directed to a Participant or to a Beneficiary,
shall be sent to such Participant or Beneficiary at this last
known address as it appears on the City' s records.
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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.
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BENEFICIARY DESIGNATION UNDER THE
EMPLOYEES ' DEFERRED COMPENSATION PLAN
WHEREAS, is a Participant in
the Employee ' s Deferred Compensation Plan of the City of
Redlands, adapted 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: (Nasse and Address)
Participant
EMPLOYEE 'S PARTICIPATION AGREEMENT
THIS AGREEMENT, made and entered into this day
of , 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 MTTUALLY AGREED
AS FOLLOWS
Section 1. Employee hereby elects to became a participant
under the Employees ' Deferred Compensation Plan, adapted 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. of ( }
annually, in accordance with Section III of the Plan. Employee
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waives any clam to such deferred mounts 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.
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.
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.
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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
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