2013-40 RESOLUTION 2013 - 40
Resolution of the City Council of the City of Grand
Terrace Approving Adoption of CaIPERS Supplemental
Income 457 Plan
WHEREAS, the City of Grand Terrace desires to establish a deferred
compensation plan for the benefit of its employees; and
WHEREAS, the Board of Administration (the "Board") of the California Public
Employees' Retirement System ("CaIPERS") has established the CaIPERS
Supplemental Income 457 Plan (the "CaIPERS 457 Plan") which may be adopted
by a governmental employer the employees of which are public employees; and
WHEREAS, the City of Grand Terrace believes that the CaIPERS 457 Plan and _-
the investment options available thereunder will provide valuable benefits to its
employees; and
WHEREAS, the Board has appointed ING (the Plan Recordkeeper) to.perform
recordkeeping and administrative services under the CaIPERS 457 Plan and to
act as the Board's agent in all matters relating to the administration of the
CaIPERS 457 Plan;
NOW, THEREFORE, BE IT RESOLVED that the City of Grand Terrace adopts
the CaIPERS 457 Plan for the benefit of its employees and authorizes and
directs the City Manager to execute the attached adoption agreement on behalf
of the City of Grand Terrace and to provide CaIPERS or any successor agent
duly appointed by the Board with such information and cooperation as may be
needed on an ongoing basis in the administration of the CaIPERS 457 Plan. A
copy of this resolution, the agreement, and any attachments-thereto shall be on
file in the office of the City Clerk of the City of Grand Terrace.
PASSED,.APPROVED AND ADOPTED this 10t" day of September, 2013.
Mayor of t e CMof Grand Terrace
ATTEST:
City Cler f the City of Gra Terrace
I, TRACEY R. MARTINEZ, CITY CLERK of the City of Grand Terrace, do
hereby certify that the foregoing Resolution was introduced and adopted at a
regular meeting of the City Council of the City of Grand Terrace held on the 10tn
day of September, 2013, by the following vote:
AYES: Councilmembers Robles, Mitchell and McNaboe; Mayor Stanckiewit;
NOES: None
ABSENT: Mayor Pro Tem Sandoval
ABSTAIN: None
Tracey R. actin z, City Cle
APPROVED AS TO FOR
City Attorney
f5o� q�Q4LL�Lf9 °II �r� 1f 1315!141: ���
AdopNorn CRS
l
The employer identified below(the"Employer')adopts the CaIPERS Supplemental Income 457 Plan(the"CalPERS 457
Plan"or the"Plan")for the benefit of its employees and agrees to be bound.by and subject to the terms of the Plan,as it
may be amended from time to time.The Employer further agrees and represents as follows:
1.The Employer is a political subdivision of the State of California and is eligible to adopt the Plan.
2.The Employer has duly adopted a resolution (copy attached)or taken such other official action-as required for its
lawful adoption and implementation of the Plan and has authorized the undersigned to execute this Agreement
on its behalf.
3.The Employer has received and has had the opportunity to review the following documents and information:
The Plan document;
A description of the optional provisions of the Plan;
A description of the investment options available to Plan participants and historical performance data for
those investment options;
A complete description of fees and expenses that will or may be charged to Plan,participants including,but
not limited to,investment fees and administrative expenses;and
The Enrollment Kit for eligible employees,which includes forms and information for employees to participate
in the Plan.
Contributions
4.The Employer understands that its employees will have the opportunity to defer their own compensation by
�± designating on amount or percentage to be withheld from each paycheck and contributed to the Plan on the
employee's behalf.
5.The Employer understands that the Plan must be made available to all employees and agrees to offer all
employees the opportunity to participate in the Plan.
6.The Employer understands that the Plan cannot be made available to individuals who are not the Employer's
common law employees and agrees not to offer such individuals the opportunity to participate in the Plan.
7.The Employer understands that each employee's deferrals under the Plan and any other eligible deferred
compensation plan maintained by the Employer are subject to certain limits imposed by the Plan and the federal
'tax code.The Employer agrees to limit employees'deferrals under all plans maintained by the Employer to
amounts that do not exceed applicable limitations.
8.The Employer agrees to deduct deferral amounts frorn employees'salaries and wages in accordance with the
employees'elections,to remit all amounts deducted to the Plan as soon as reasonably practicable after such
amounts are withheld,and to accurately report the amounts remitted.
9.The Employer understands and agrees that all amounts deferred under the Plan shall be 100%vested and shall
be deposited in the Public Employees'Deferred Compensation Fund(the"Fund"),a trust established to hold
such amounts,for the exclusive benefit of participants and their beneficiaries.The Employer shall have no right
to Fund assets or to sell;redeem, or otherwise liquidate Fund assets,except as provided Plan section 10.6.
SKU#EAA 0811
Investments
10.The Employer understands and agrees that employees who defer compensation under the Plan will have the right
to direct the investment of their individual Plan accounts by choosing among the investment options selected by
the CalPERS Board of Administration(the "Board")and offered under the Plan.The Employer further under-
stands and agrees that any employee who does not provide timely directions for investing his or her account will
be deemed to have selected the Plan's default investment.The Plan's default investment is currently the
CalPERS Target Retirement Fund designated for an employee,based on his or her expected retirement date.The
Employer understands and agrees that the Board,in its sole discretion,may add,eliminate,or consolidate
investment options offered under the Plan, including the Plan's default investment option.
11.The Employer further understands and agrees that certain fees are charged to Plan participants for investment
and administration expenses, and that such fees will be offset against investment returns or deduced from
participants'Plan accounts periodically.
Administration '
12.The Employer understands and agrees that, except as specifically set forth in the Plan,the administration of the
Plan and Fund is subject to the exclusive control of the Board and that the Board has the authority to retain third
parties to provide investment services, record keeping,accounting,or other services for the Plan.
13.The Employer agrees to assist and cooperate in providing Plan information to employees and to follow
administrative procedures established by the Board or its designee(s)from time to time.
14.The Employer has completed the attached New Employer Data Sheet,which is incorporated by reference.The
j" Employer hereby certifies that all information provided in connection with its adoption of the Plan is true
.' and accurate.
15.The Employer understands and agrees that the Board has retained the power and authority to amend the Plan
from time to time,subject to limitations set forth in the California Government Code and the Plan.The
Employer may not amend the Plan.
16.The Employer understands and agrees that its participation in the Plan may be terminated by the Employer or
by the Board upon sixty(60)days advance written notice. Upon termination, all amounts held for participants
will continue to be held in the Fund for the exclusive benefit of participants and their beneficiaries,except for
distributions or transfers permitted under the Plan terms.
Name of Employer: qity of Grand Terrace
By: --Title: City Manager_ —
Date:_
Accepted by CalPERS (or an agent duly appointed by the•Board)on behalf of the Board of Administration of the
California Public Employees' Retirement System
By: ;3;�-- Title:
Date: ! ��
SKU#EAA Ool I