HomeMy WebLinkAboutRES 88-104 AGENDA - VEM
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R E S O L U T I O N
WHEREAS, the City of Beaumont has employees rendering
valuable services; and,
WHEREAS, the establishment of a deferred compensation
plan for such employees services the interests of the City of
Beaumont by enabling it to provide reasonable retirement security
for its employees, by providing increased flexibility in its
personnel management system, and by assisting in the attraction
and retention of competent personnel; and,
WHEREAS, the City of Beaumont has determined that the
establishment of a deferred compensation plan to be administered
by the ICMA Retirement Corporation serves the above objectives;
and,
WHEREAS, the City of Beaumont desires that the
investment of funds held under its deferred compensation plan be
administered by the ICMA Retirement Corporation, and that such
funds be held by the ICMA Retirement Trust, a trust established
by public employers for the collective investment of funds held
under their deferred compensation plans and money purchase
retirement plans;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the City of Beaumont hereby adopts the deferred compensation
plan attached hereto as the plan provided by the City of Beaumont
which is attached hereto as Exhibit 1°A" , and the Trust Agreement
with the ICMA Retirement Corporation and appoints the ICMA
Retirement Corporation to serve as Administrator thereunder.
P
BE IT FURTHER RESOLVED that the City of Beaumont hereby
authorizes its City Manager to execute the Declaration of Trust
of the ICMA Retirement Trust, attached hereto as Exhibit "B11 .
BE IT FURTHER RESOLVED that the Risk Manager shall be
the coordinator for this program and shall receive necessary
reports and notices from the ICMA Retirement Corporation or the
ICMA Retirement Trust, and shall cast, on behalf of the City of
Beaumont, any required votes under the program.
PASSED BY THE CITY COUNCIL of the City of Beaumont this
the 16 day of 1988.
F
Mayor -
2 -
SUGGESTL_ RESOLUTION FOR A LEGj,-LATIVE BODY
RELATING TO A DEFERRED COMPENSATION PLAN
RESOLUTION OF City of Beaumont ("Employer').
WHEREAS, the Employer has employees rendering valuable services; and
WHEREAS,the establishment of a deferred compensation plan for such employees serves the interests of the Employer
by enabling it to provide reasonable retirement security for its employees, by providing increased flexibility in its
personnel management system, and by assisting in the attraction and retention of competent personnel; and
WHEREAS,the Employer has determined that the establishment of a deferred compensation plan to be administered
by the ICMA Retirement Corporation serves the above objectives; and
WHEREAS, the Employer desires that the investment of funds held under its deferred compensation plan be
administered by the ICMA Retirement Corporation, and that such funds be held by the ICMA Retirement Trust,
a trust established by public employers for the collective investment of funds held under their deferred compensa-
tion plans and money purchase retirement plans;
NOW THEREFORE BE IT RESOLVED that the Employer, unless it has already done so, hereby adopts the deferred
compensation plan attached hereto as: (check one only if Employer is hereby adopting a plan)
(1) Appendix A [ ] or
(2) The plan provided by the [X]
Employer which is attached hereto
and the Trust Agreement with the
ICMA Retirement Corporation
(Appendix C)
and appoints the ICMA Retirement Corporation to serve as Administrator thereunder; and
BE IT FURTHER RESOLVED that the Employer hereby executes the Declaration of Trust of the ICMA Retirement
Trust, attached hereto'as Appendix B.
BE IT FURTHER RESOLVED that the Risk Manaaer (use title of official, not name)
shall be the coordinator for this program and shall receive necessary reports, notices, etc. from the ICMA Retire-
ment Corporation or the ICMA Retirement Trust, and shall cast, on behalf of the Employer, any required votes under
the program. Administrative duties to carry out the plan may be assigned to the appropriate departments.
I, , Clerk of thq (City, County, etc.)
Of , do hereby certify that the foregoing resolution, proposed by
(Council Member, Trustee, etc.) of was duly passed and adopted
in the (Council, Board, etc.) of the (City, County, etc.) of
at a regular meeting thereof assembled this day of 19 , by the following vote:
AYES:
NAYS:
ABSENT:
(SEAL)
Clerk of the(City, County, etc.)
F-inikicial Industries Service Corr%nration Suite _.JO, Austin National Bank TowP- 4ustin.Texas'/a/01 , telephone:5121474-1927
October 25 , 1983
City of Beaumont
Chief Accountant
P. 0. Box 3827
Beaumont, Texas 77704
Re : Deferred Compensation Plan
Dear Sir,
Enclosed, please find form of Amended Plan. The changes were --
required by changes in the Internal Revenue Code, particularly
Section 457.
The amendments are additions or changes to Sections 3.8, 4. 1 ,
4.2. 4 .3 , 4 .5 , 4 .6 . 7 . 1 , 7 .2 and 7.4. In Section 4.5 the
sentence i.n parenthesis is optional to each employer.
Amendments to the Plan by the employer are allowed at any time by
Section 11 ; however, a copy of the Amended Plan must be delivered
to each participant.
Please advise us when the Amended Plan has been made effective,
and return to us a signed and dated duplicate original of same.
Sincerely,
f liam B verley
eral Counsel losure
WB :egp
>n �0
r �
C�
RECEIVED
9
CITY OF BEAUMONT
PERSONNEL 9
DEPT.
G
CITY OF BEAUMONT
DEFERRED COMPENSATION PLAN
SECTION 1 . NAME :
The name of this Plan is the City of Beaumont Deferred
Compensation Plan (hereinafter referred to as the Plan) .
SECTION 2. PURPOSE :
The primary purpose of the Plan is to attract and hold
personnel by permitting them to enter into agreement with
the City of Beaumont which will provide for deferral
of payment of a portion of their current compensation until
death, disability , retirement, termination of employment, or
other event as provided herein, in accordance with the
provisions of Sections) One through Twelve (1-12)
, and applicable provisions of the Internal
Revenue Code.
SECTION 3. DEFINITIONS :
For the purposes of this plan, certain words or phrases used
herein will have the following meanings :
3. 1 "Employer" shall be City of Beaumont
3 .2 "Employee" shall mean all officials and full-time
employees and contracted personnel of the employer.
3 .3 "Participant" shall mean any employee who fulfills the
requirements of enrollment into this Plan.
3 .4 "Participation Agreement" shall mean the agreement
executed and filed by an employee with the employer
pursuant to Section 4 , in which the employee elects to
become a participant in the Plan.
3.5 "Compensation'? shall mean the total of all- amount which
would be paid by the employer to or for the benefit of
.an employee ( if he were not a participant in the Plan)
for actual services for the period that he is a
participant.
3.6 "Employment Period" means a period from January 1
through December 31 of the same year, except that the
first year of an employee hired in mid'-period shall be
the period beginning with the date of employment and
ending on December 31 .
3.7 "Disability" means the inability of a participant to
engage in his usual occupation by reason of a medically
determinable physical or mental impairment as
determined by the employer on the basis of advice from
a physician or physicians.
PAGE 1
3 .8 "Normal Retirement Age" means the age at which the
employee is eligible to retire under the Retirement and
Pensioning System of which he or she is a member.
SECTION 4. PARTICIPATION IN THE PLAN :
4 . 1 Each employee may elect to become a participant of the
Plan and defer payment of part of his compensation by
executing a written Participation Agreement and filing
it with employer. Upon executing the Participation
Agreement, the participant elects to participate in the
plan and consents to the employer deferring the amount
specified in the Participation Agreement from the
Participant ' s gross compensation for each pay period.
4 .2 Compensation will be deferred for - any calendar month
only if the Participation Agreement providing for such
deferral is entered into before the beginning of such
month. The original election of a participating
employee shall be effective for pay periods commencing
during the first month after the date on which the
Participation Agreement is filed with the employer.
4 .3 A participant may revoke his election to participate -
and may amend the amount of compensation to be deferred
by signing and filing with the employer a written
revocation or amendment on a, form approved by the
employer. Any such revocation or amendment shall be
effective prospectively only, and shall cause no change
in the allocation of amounts invested prior to the
filing date of the amendment or revocation. No amounts
shall be payable to an employee upon termination of his
participation in the Plan unless otherwise due pursuant
to Section 7.
4.4 A participant may select prusuant to Section 61 one or
more investment objectives provided that the amount
deferred for each objective equals or exceeds the
minimum of not less than $10 per pay period.
4 .5 Except as provided in Section 4 .6, the maximum amount
of compensation that may be deferred under the Plan for
the participant' s taxable year shall not exceed the
lesser of (a) $7 ,500 or (b) twenty-five percent (25%)
of the participant' s gross pay. The term "gross pay"
is the total amount earned by the participant as a
result of services performed for the employer. (The
annual maximum amount that can be deferred will be
computed on the employer' s pay period basis) . In
computing the annual maximum limit, every dollar
contributed during the same calandar year to a
retirement plan administered by an institution of
higher learning, etc. , under Section 403(b) of the
Internal Revenue Code will be considered deferred under
the Plan.
PAGE 2
4 .6 For oi— or more of the Participant ' s last three (3)
taxable years before he attains Normal Retirement Age
under the Plan, the maximum amount of compensation that
may be deferred shall be the lesser of (a) $15 , 000 or
(b) the sum of the limitation established for purposes
of Section 4 .5 of the Plan for the taxable year
(determined without regard to this section) , plus so
much of the limitation established under Section 4 .5
for taxable years beginning with taxable years after
January 1 , 1979 , as has not heretofore been used as
provided in Section 457 of the Internal Revenue Code.
SECTION 5 . DEFERRAL OF COMPENSATION :
During each employment period in which the employee is a
participant in the Plan, the employer shall defer payment of
such part of his compensation as is specified by the
employee in the Participation Agreement which he has
executed and filed with the employer.
SECTION 6. ADMINISTRATION OF THE PLAN :
6. 1 The Plan shall be administered by the Advisory
Committee who shall have the sole authority to enforce
the Plan and shall be responsible for the operation { of --
the Plan in accordance with its terms, and shall
determine all the questions arising out of the
administration, interpretation, and application of the
Plan, which determinations shall be conclusive and
binding on all persons.
6.2 The employer shall establish a deferred compensation
fund to which all deferred compensation shall be
credited at such times as the compensation would have
been payable to individual employees if not a
participant of the Plan. Separate accounts will be
established for each employee participation which will
show all amounts of deferred compensation, investments
made, and earnings, gains or losses on investments.
Each account will be valued at least annually on a
method that fairly and accurately reflects the value of
those investments.
6.3 On executing the Participation Agreement, the employee
shall designate his investment objective prospectively
only. The employer is not required to invest any
amount it may receive, but may invest amounts of
deferred compensation in any investment permitted by
state law. The employer is the sole owner and
beneficiary of all funds, investments and other assets
under this plan. All dividends, capital gains,
distributions, interest earnings and other income
payable on any of the employer' s investments may be
reinvested in those investments.
6.4 The employer may, but is not required to, invest
PAGE 3
defer, compensation at 1 st monthly in the
investment vehicles provided for in this plan. All
amounts of deferred compensation, whether or not
invested by the employer, shall at all times be and
remain an asset of the employer. Any and all
dividends, capital gains distributions, interest or
other income payable on any of the employer' s
investments or deferred compensation, also shall be an
asset of the employer. The employer shall have the
sole right to vote any shares which it may acquire by
such investment. .
6 .5 Neither this Plan nor any Participation Agreement nor
any account shall be deemed to create a trust or
custodian account on behalf of or for the benefit of
any participant of the Plan or his beneficiaries. No
participant of the Plan or his beneficiaries shall
have, by reason of the Plan, Participation Agreement or
account, any secured or preferred interest in or to any
assets of the employer.
6 .6 The employer shall have only a contractual obligation
to pay benefits due the participant under the Plan.
SECTION 7. DISTRIBUTION OF BENEFITS :
7 . 1 Election - Each participating employee must elect the
payout options and the payout periods for each event
stated in Section 7 .2, 7 .39 7 .4 , and 7.5 , at the time
of signing each Participation Agreement. However, such
payout options and payout periods may be changed at any
time prior to thirty (30) days after the participating
employee ' s retirement, disability, termination of
employment or death.
7 .2 Retirement - In event of retirement, the full benefits
credited to participant' s account, plus or minus any
subsequent investment gains or losses, but less any
Federal or State Income Taxes required to be withheld,
may be distributed to him in any one or more of the
following ways.
7.2(a) In a lump sum.
7.2(b) In monthly, quarterly, semi-annual or annual
installments over a period not to exceed ten
( 10) years from date distribution began, or
over a period established by the employer not
greater than the life expectancy of the
participant. Life expectancy shall be
determined once by the employer, on the date of
the initial installment distribution.
Installment distributions will be made in
substantially equal payments, but no payment
shall have a value of less than (the smaller
of) $50 or the balance credited to the
PAGE 4
participant ' s account.
Participant ' s account balances may continue to be
invested until - in the employer ' s sole judgment - cash
is to be withdrawn for payment of benefits. Payment of
benefits will commence thirty (30) days following
termination of employment or as soon thereafter as is
administratively possible.
7 .3 Disability - In event of termination of employment by
reason of disability, distribution of benefits will be
as provided in Section 7 .2.
7 .4 Other Termination - In event of termination of
employment by reason other than those specified in
Section 7.2 and 7 .3 , then the full benefits credited to
participant' s account plus or minus any subsequent
investment gains or losses, but less any Federal or
State income taxes required to be withheld, shall be
distributed to him in any one or more of the following
ways:
7.4( a) In a lump sum.
7.4(b) In a monthly, quarterly, semi-annual, or annual__
installments or substantially equal payments
over a period n.ot to exceed seven (7) years
from date distribution began, but no payment
shall have a value of less than (the smaller
of) $50 or the balance credit to the
participant' s account.
7.4(c) Postpone payments under 7.4(a) and .(b) above
until participant reaches his 50th, 55th, 60th
or 65th birthday.
The employee shall elect the method of distribution at the
time of signing each Participation Agreement. However, the
employee may irrevocably elect, prior to the time any such
benefits become payable, to defer payment of some or all
such amounts to a fixed or determinable future time.
Participant' s account balances may continue to be invested
until - in employer' s sole judgment - cash is to be
withdrawn for payment of benefits. Payment of benefits
under Section 7.4(a) and 7.4(b) will commence thirty (30)
days following termination of employment or as soon
thereafter as is administratively possible. Payment of
benefits under Section 7.4(c) will commence thirty (30) days
following the date indicated under Section 7.4(c) or as
soon thereafter as is administratively possible. -
7.5 Death - In the event of the death of any participant,
either before or after termination of employment, then
the full benefits credited to his account, less any
Federal or State Withholding Taxes required by law,
shall be distributed to his beneficiaries in the manner
PAGE 5
designated in the participant' s Participation
Agreement. The employer shall in the case of Lump Sum
payment make payment ninety ( 90) days after
notification of death of the participant in compliance
with any State laws governing the payments of death
benefits.
7 .6 Financial Catastrophe - In the event of financial
catastrophe affecting a participant where the
withdrawal of funds would be necessary to prevent great
hardship to the participant and the amount of
withdrawal requested by the participant is only the
amount necessary to meet that financial catastrophe,
and is not reimbursed by insurance, a participant may
apply to the employer for withdrawal of such amount
from the Plan prior to retirement or to termination of
participant' s employment with the employer.
Examples of such need under the foregoing criteria may
be catastrophic illness, flood, fire, earthquake, death
in the family, or disabling injury, and examples of
similar import. Withdrawals for expenditures normally
budgetable, such as down payment on a home or purchase
of an automobile, or college expenses, will not be
permitted. Any amount so approved hereunder for
withdrawal shall be paid to participant in a lump sum.
The withdrawal shall be effective at the later of the
dates specified in the participant' s application or the
date approved by the employer.
SECTION 8. EMPLOYER PARTICIPATION :
Notwithstanding any other provisions of this Plan, the
employer may make additional deposits in the deferred
compensation fund as additional compensation for the
services rendered by the, employee to the employer during an
employment period, provided the employee has elected to have
such additional compensation deferred, and distributed,
pursuant to this Plan, prior to the employment period in
which the compensation will be earned.
SECTION 9. NON-ASSIGNABILITY :
To the fullest extent permitted by law, the interest of a
participant in the contractural obligation of the employer,
established by the Plan, shall not be assignable in whole or
in part, directly or by operation of law or otherwise, in
any manner and no right or interest of a participant in the
employer' s contractual obligation shall be liable for or
subject to any obligation or liability of such participant.
SECTION 10. MISCELLANEOUS:
10. 1 Status of Participants - Neither the establishment of
the Plan nor any modification thereof, nor the
establishment of any account, or the payment of any
n At%V r,
benefits, shall be construed as giving to any
participant or other person any legal or equitable
right against the employer except as herein provided ;
and, in no event, shall the terms of employment of any
employee or participant be modified or in any way
affected hereby.
10.2 Condition of Plan - It is a condition of this Plan, and
each employee by participating herein expressly agrees,
that he shall look solely to the general assets of the
employer for the payment of any benefit to which he is
entitled under the Plan.
10 .3 Governing Law - This Plan shall be construed,
administered, and enforced according to the laws of the
State of Texas
10.4 Designation of Beneficiaries - Each participant shall
have the right, by written notice to the employer, to
designate beneficiaries to receive any benefit to which
said participant may be entitled in the event of his
death prior to the complete distribution of benefits.
If no such designation is in effect on a participant' s
death, his beneficiary shall be his estate or if no
executor or administrator is appointed within sixf (6) --
months after the participant' s death, the employer
shall direct said . benefits to be paid to the
beneficiary or beneficiaries designated in his last
will, or if there be no will, then to the heirs at law
of the participant.
SECTION 11 . AMENDMENT AND TERMINATION:
11 . 1 The employer may at any time and from time to time
modify or terminate the Plan in whole or in part
(including retroactive amendments) or cease deferring
compensation pursuant to - the Plan, by delivering to
each participant a written copy of such modification,
amendment, or termination, or of a notice that it
ceased deferring compensation; provided however, the
employer shall not have the right to reduce or affect
the value of any participant' s account or any rights
accrued under the Plan prior to such modification,
amendment, termination or cessation.
11 .2 In the event of the termination of the Plan by the
employer under Section 11 . 1 , the value of all
participant' s accounts may, at the employer' s option,
be distributed to the participants or their
beneficiaries in lump sums on the sixtieth (60th) day
after termination of the Plan.
11 .3 If the employer does not elect to pay accrued benefits
on termination of the Plan, the employer shall cease
all deferrals of compensation, but payments shall be
made pursuant to the applicable provisions of Section 7
PAGE 7
of th Ilan and the irrevocable t_ection of the various
participation agreements then in effect.
SECTION 12. EMPLOYER NOT RESPONSIBLE:
The employer may, but is not required to, invest funds held
pursuant to agreement between participants and the employer
in accordance with the requests made by each participant at
the time of enrollment or change in enrollment,
prospectively only. The employer shall retain the right to
approve or disapprove such investment requests. Any action
by the employer in investing funds, or approving of any such
investment of funds, shall not be considered to be either an
endorsement or guarantee of any investment, nor shall it be
considered to attest to the financial soundness or the
suitability of any investment for the purpose of meeting
future obligations as provided in Section 7 of this plan.
ATTEST:
BY : DATE:
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TITLE
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