1982-46 J
RESOLUTION NO. 82-46
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAND TERRACE, CALIFORNIA, RESCINDING RESOLUTION
NO 81-57, AND ADOPTING AN EMPLOYEE'S DEFERRED
COMPENSATION PLAN AND AUTHORIZING THE EXECUTION
OF AGREEMENTS RELATED TO SAID PLAN BY THE CITY
MANAGER.
WHEREAS, Resolution No. 81-57 established a Deferred'Compensation Plan
for its employees who are and will be rendering valuable services to the City;
and
WHEREAS, as the result of a survey taken comparing benefits of local
and contract cities, it has been determined there is a need to increase the
percentage contributed by the City to the Deferred Compensation Plan;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES
HEREBY RESOLVE, DETERMINE, AND DEMAND AS FOLLOWS:
SECTION 1. That Resolution No. 81-57 is hereby rescinded in its
entirety.
SECTION 2. That the Deferred Compensation Plan established by Council
effective November 30, 1978, attached hereto and incorporated herein as
Exhibit "A", is to remain in effect until terminated by further resolution of
the City Council .
SECTION 3. That the City Manager and the Finance Officer are hereby
.authorized to cause to be issued deposits that may be necessary to maintain
the percentage rate.
SECTION 4. That effective July 1, 1982, the compensation paid. by the
City to the Deferred Compensation Plan be increased from 15.6% to 18.1%.
SECTION 5. That the City Manager is hereby appointed to administer
the §plan on behalf of the City and is authorized to execute participation
agreements with eligible officers, officials, and employees and all other
documents and agreements necessary to implement and administer the Plan.
ADOPTED this 14th day of October, 1982.
ATTEST:
f ''Ci ty�_,. rk .of the City of Gr d Mayor o t y ld rand errace
"._ %., "Te_r_rac� :, a 'nd of the City Council and of the C t Counc thereof.
th�o eof.
Approved.as to form:
G�
i ty orney
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss.
CITY OF GRAND TERRACE )
I, MYRNA ERWAY, City Clerk of the City of Grand Terrace, DO HEREBY
CERTIFY that the foregoing Resolution was duly adopted by the City Council of
said City at a regular meeting of the City Council held on the 14th day of
October, 1982, and that it was so adopted by the following vote:
AYES: Councilmembers Rigley, Petta, Nix, Pfennighausen;
Mayor Grant.
NOES: None.
ABSENT: None.
City Cl er of the City of Gra,rrd 7errAce'
and of tf City Council thereof - =
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss.
CITY OF GRAND TERRACE )
I, MYRNA ERWAY, City Clerk of the City of Grand Terrace, DO HEREBY
CERTIFY that the above and foregoing is a full , true, and correct copy of
Resolution No. 82-46 of said City, and that the same has not been amended or
repealed.
DATED: October 14, 1982.
City C r of the City of Gray er_r._ac
and o the City Council there _
a
CITY OF GRAND TERRACE
EXHIBIT "A"
RESOLUTION NO. 82-46
EMPLOYEES' DEFERRED COMPENSATION PLAN
SECTION T.,
NAME: The name of this Plan is the CITY OF GRAND TERRACE EMPLOYEES DEFERRED
COMPENSATION PLAN (hereinafter referred to as the "Plan") .
SECTION 2.
PURPOSE: The purpose of this Plan is to enable Employees of THE CITY OF
GRAND TERRACE, CALIFORNIA, to defer portions of their compensation
and to provide retirement, disability, and death benefits.
SECTION 3.
DEFINITIONS: For the purpose of this Plan, certain words or phrases used
herein will have the following meanings:
3.1 "Employer" means the Public Agency named in Section 1 hereinabove.
3.2 _ "Emplooyee" means any officer or employee of the_ Empl oyes. named in
Section 1 .
3.3 "Participant" means any eligible Employee who elects, pursuant to
the Plan, to defer a portion of his/her compensation; .and who
fulfills the requirements for participation in the Plan.
3.4 "Partici-pation Agreement" shall mean the written agreement by
which an Employee elects to become a Participant under the Plan.
3.5 "Beneficiary" may be any person, trust, corporation or firm, or
the estate of the Participant,. .or any combination of the foregoing
designated by a Participant to receive benefits under the Plan.
Designation .s.ha:1.7 ..be by written.instrument executed by the Parti-
cipant unless otherwise provided. Beneficiary may be singular or
plural , primary or contingent.
3.6 "Administrator" means the Employer and/or -other parties appointed
by the Employer to administer the Plan.
3.7 "Compensation"'means the total of all amounts 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.
3.8 "Payroll Period" means the work period for which a pay check is issued. _
3.9 "Includible Compensation" means compensation for services performed
for Employer which is currently includible in gross income, but
less any amounts deferred pursuant to a plan described in IRC
Section 457 (including but not limited to this Plan) or IRC
Section 403(b).
3.10 "Retirement" means retirement from service with the Employer which
becomes effective on the first day of the calendar month after
Participant meets the age and service requirements for retirement
(including "early" or "late" retirement) specified in the applicable
retirement policies of-the Employer.
SECTION 4. PARTICIPATION IN THE PLAN
4.1 Any Employee designated by the Employer to be eligible may elect
to become a Participant in the Plan by executing and filing a
Participation Agreement with-the Administrator. An election to
Participate in the Plan shall become effective with respect
to Compensation earned by the Participant during the calendar
month next following the date of the Participant's election.
Such election shall continue thereafter in full force and effect
unless revoked by the Participant.
4.2 Each Participation Agreement shall specify the amount, by dollar
amount or by percentage of gross compensation, which is to be
deferred pursuant to the Plan and to be withheld out of the Compen-
sation otherwise payable-"to the Participant for each Payroll Period.
The amount deferred each year may not exceed the lesser of $7,500
or 33 1/3q of Participant's Includible Compensation. Such deferred
amounts shall- be reasonably equal installments totaling not less
than five dollars (-$5.00) per Payroll Period.
The annual minimum may be prorated during the inception year, or
during a partial year for a new or newly eligible Employee, for
full Payroll Periods' remaining in the first calendar year of
participation.
4.3 Notwithstanding the provisions of 4.2 herein, during any or all
of the last 3 tax years ending before a Participant's normal
retirement age the maximum amount deferred annually shall be the
lesser of $15,000 or the sum of the maximum amount which can be
deferred pursuant to paragraph 4.2 plus the difference between
the amount which could have been deferred in prior years and
the amount actually deferred pursuant to the Plan.
4.4. A Participant. may revoke his election to participate in the Plan,
and thereby terminate further deferral of his Compensation, by
executing and filin with the Administrator a notice of revocation
at least thirty (30? days prior to the effective date of revocation.
A former Participant may not rejoin the Plan during the calendar
month in which revocation occurred; however, he may elect to
become a Participant for subsequent calendar months after a lapse of
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not less than six (6) months. No amounts shall be payable to an
Employee upon revocation of his participation in the Plan unless
otherwise provided for in Section 7.
4.5 A Participant may change the amount of Compensation to be deferred
in a subsequent calendar month by executing and filing notice with
the Administrator at least 30 days prior to the beginning of such
month, provided, however, that such change may be made not more
than two (2) times in a calendar year.
4.6 A Participant may designate in writing a Beneficiary to receive any
benefits which may be payable under the Plan upon the death of such
Participant. Designation of Beneficiary may be changed by notice
in approved form executed and filed with the Administrator.
SECTION 5:- DEFERRAL OF COMPENSATION
5.1 During the- period of participation, the Employer shall not pay the
Participant his full compensation, but shall defer payment of such
part of his Compensation as the Participant has specified in his
Participation Agreement. The Employer shall establish in its records
an Individual -Deferred Compensation Account ("IDC Account") for
each Participant, and a summary of such IDC Accounts, to be identified
as a General Deferred Compensation Account ("GDC Account") , to
provide a convenient method of measuring its obligations to each
and all Participants ..under_. the- Plan.
5.2 Neither the existence-of the Plan nor the IDC Accounts shall be
deemed to create a trust, and the Employer shall at all times be
the legal and beneficial owner of all assets of said IDC Accounts.
5.3 Neither the existence of the Plan or the IDC Accounts shall entitle
any Participant, a beneficiary of any Participant, or a creditor of
any Participant to a claim or lien against the assets of the IDC
Accounts. The Participant and his beneficiary shall have only the
right to receive benefits pursuant to the Plan.
SECTION 6. ADMINISTRATION OF THE PLAN
6.1 The Plan shall be administered by the Administrator under- the
direction of the Employer. Acting for and in behalf of the Employer,
the Administrator may transmit amounts in the IDC Accounts to such
investment plans as hereafter may be approved by the Employer. In
regard to such investments , written agreements between the Employer
and the institutions accepting funds for investment shall contain at
least the following provisions:
6.1(a) Any investment of amounts in the IDC Accounts, including
earnings on such amounts, shall be made according to written
instructions of the Administrator.
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6.1 (b) The Employer shall be the legal and beneficial owner of
all amounts invested (as between Employer and Participant).
The Employer shall hold all certificates, policies and
other documents evidencing ownership of the amounts
invested, and shall maintain records, including records
of the IDC Account of each Participant and the�GDC Account.
6.1 (c) No less frequently than quarterly, the Employer shall be
furnished with written reports showing the fair market
value and/or the current balance of the amount invested
(including interest and dividends accrued, if any) , and
amounts shown in such reports shall be reflected in each
Participant's IDC Account by the Employer.
6.1 (d) No less frequently than quarterly, each Participant shall
be furnished with a statement showing transactions, earnings
and the current balance of the amounts invested from his
IDC Account.
6.1 (e) The Employer shall have the sole right to vote any shares
of stock or proxies which it may acquire or be entitled
to by investment of IDC Account funds.
6.2 The Administrator shall record promptly and accurately all trans-
actions pertaining to Participants' Deferred Compensation in their
IDC Accounts, and Participant shall be entitled to know- the balance
in his IDC Account at least quarterly.
6.3 The Employer shall have the sole authority to enforce the Plan and
shall be responsible for its operation in accordance with its terms.
6.4 The Employer shall determine all questions arising out of the
administration, interpretation and application of the Plan. All
determinations shall be conclusive and binding.
6.5 Prior to the time specified in the Plan for payment to Participant
each Participant shall elect the time, manner and (if applicable)
the amount of benefits to be paid to him, or in the event of his
death to his Beneficiary, under the Plan. If no election is made,
payment may be made as a lump sum distribution.
6.6 In the event that the Employer should purchase an annuity as a means
of investment and distribution of funds in a Participant's IDC
Account, the Employer shall be both the owner and the named
Beneficiary of such annuity contract.
SECTION 7. BENEFITS
The Employer shall pay to the Participant, or to his Beneficiary if applicable,
the amount in such Participant's IDC Account as of the month-end following
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• „ifs"i'r�.> :.?�. . ..'%5�..
the Participant's termination, retirement, total disability or death.
Distribution of Benefits under the Plan will be made, or if in installments
shall commence, not later than sixty (60.) days after notice to the Administrator
of the occurrence of the events or birthday described in Section 7 unless
otherwise specifically provided in the Participation Agreement. All distribu-
tions shall be subject to any State or Federal taxes required to be withheld.
Payment shall be made in accordance with the election made in the Participation
Agreement, except in the event of Hardship described in Section 7.4.
Installment distributions shall be in approximately equal -installments which
shall be intended to exhaust the balance due Participant or Beneficiary
at the expiration of the term over which they will be made. Such. installment
amounts may be adjusted from time. to time to take into consideration gains
or losses,.--if any, from funds invested.
Notwithstanding the for if any method elected by the Participant
shall result in installment payments of less than $25.00, the Employer shall
make payments on an annual basis aggregating installments otherwise due;
or if the balance due Participant or Beneficiary.is less than $1 ,000.00,
Employer shall discharge its obligation by a lump sum payment.
7.1 RETIREMENT: . Upon retirement, the full benefits credited to the
Participant's IDC Account, plus or minus investment gains or
losses, but less any Federal or State taxes required to be
withheld, shall 'be distributed to a Participant in any one or
more of the following ways, as pre-elected at time of enrollment
or as subsequently modified By the Participant.
7.1(a) In a lump sum.
7.101 In monthly, quarterly, or annual payments for a
designated period of not less than one year and not
more than the remaining years of the Participant's
life expectancy.- determined by the Administrator in
accordance with standard mortality tables recognized
for that purpose.
7.1 (c) Installment payments, equal to benefits which would be
payable to Employer under and pursuant to terms of a
retirement annuity policy or policies which may be
purchased at- the time of Participant's retirement,
shall be paid to him in the event that Participant
had pre-elected an annuity form providing for such
payments.
7.1 . (d) In payments, under 7.1Ca) and 7.1Cc) above, postponed
by pre-election at time of enrollment or as subsequently
modified by the Participant, until Participant reaches
age 62.
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7.2. OTHER TERMINATION: In the event of termination before Retirement
for reasons other than those specified in Section 7.3 and Section
7.4, then the full benefits credited to Participant's IDC Account,
plus or minus subsequent gains or losses , shall be distributed to
him in any one or more of the following ways, pre-elected at the
time of enrollment or as subsequently modified by the Participant.
7.2. (a) In a lump sum.
7.2(b) In monthly payments over a period not to exceed ten (10)
years from date distribution begins. .
7.2(c) In payments, under 7:,2(a) and 7.2(b) above, postponed by
pre-election at time of enrollment, or as subsequently
modified by the Participant, until Participant reaches
age.. 62.
7.3 TOTAL PERMANENT DISABILITY: In the event of the total permanent
disability of a .Participant while he is an Employee of the Employer,
the Employer shall paylto the Participant an amount equal to the
balance of the Participant's IDC Account as of the month-end
following .the Employer's determination of such disability, such
amount to be paid in the manner pre-elected by the Participant
at the time of enrollment, or as subsequently modified by the
Participant, pursuant to the options in Section 7.1 , above.
7.4 HARDSHIP: In the event of occurrence to the Participant of an
unforeseeable emergency event to be determined by the Employer
in his sole discretion, the Employer -may pay to the Participant
all or any portion of the amount in such Participant's IDC Account
as of the month-end following the date when such determination is
made. As used herein, emergency event shall mean only a real
emergency which has occurred, which is or was beyond control of
the Participant, and the occurrence of which has or would cause
the Participant great financial hardship. . The amount that will
be paid out shall be limited to the amount necessary to alleviate
the hardship.
Any distribution under this section shall be deemed a revocation
under Section 4.4 and no further deferral of Compensation will be
made unless Participant subsequently re-elects to participate as
.provided in 4.4.
7.5 DEATH: In the event of death of any Participant, either before
or after termination of employment, then the full benefits credited
to his IDC Account shall be distributed to his Beneficiary in a
manner described in Sections 7.1 (a) , 7.1 (b) , and 7.1 (c) as pre-
elected at time of enrollment or as subsequently modified by
the Participant.
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SECTION 8. MISCELLANEOUS
8.1 The contractual obligation of the Employer to the Participant
established by the Plan shall not be assignable in whole or part,
voluntarily or by operation of law, and no right or interest
of a Participant pursuant to the Plan shall be subject to any
obligation or liability of such Participant or his Beneficiary,
except as provided in the next paragraph hereinbelow.
8.2 No Participant or other person shall have any legal or equitable
right against the Employer except as provided in the Plan, and
in no event shall the terms of employment of any Employee or
Participant be modified or in any way affected thereby.
8.3 Each Participant herein expressly agrees for himself and his
Beneficiary that he shall look solely to the general assets of
the Employer for the payment of any such benefit to which he may
become entitled under the Plan, and acknowledges that all amounts
deferred hereunder shall be available to satisfy the general
obligations of the Employer.
8.4 The Plan has been adopted in the State of California and shall be
construed and governed and administered in compliance with all
applicable State laws.
8.5 Captions used in the Plan are for the purpose of convenience only,
and shall not. l.imit,_ restrict or enlarge.Ahe provisions of the
Plan.
8.6 The Plan shall be binding upon and shall inure to the benefit of
the Employer, its successors and assigns, all Participants and
Beneficiaries, and their heirs, and legal representati-ves.
8.7 As used_ in .the Plan, the masculine or feminine or neuter gender,
and the sigular or plural number shall each be deemed to include
the others unless the context clearly indicates otherwise.
8.8 Any notice or other communication required or permitted under the
Plan shall be in writing and, if directed to the Employer, shall
be sent to the Administrator at his principal office; and, if
directed to a Participant or a Beneficiary, shall be sent to such
Participant or Beneficiary at his last-known address as it appears
on the Employer's records. Such notice shall be deemed given when
mailed.
8.9 Deductions for Participant's contributions to retirement associa-
tions shall be made without reference to amounts deferred pursuant
to the Plan.
8.10 An approved leave of absence with pay shall not affect agreements
to participate in the Plan.
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C
8.11 An approved leave of absence without pay shall be considered to
be a temporary suspension of participation in the Plan. Partici-
pation shall be automatically reinstated as of the first day of
the next Pay Period subsequent to the termination of such leave
of absence status.
8.12 The Employer shall make no loans or advances to the Participant
or Beneficiary based upon IDC Accounts, described herein, or upon
any other obligations under the Plan.
SECTION 9. TERMINATION OF PLAN BY EMPLOYER
The Plan may be amended or terminated by the Employer at any time, or the
Employer 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 by the Employer shall reduce or
impair the rights of any Participant or Beneficiary which may already have
accrued.
9.1 If the Plan is terminated by the Employer, the Employer may elect :
to distribute, in the same manner to all Participants, amounts
equal to the balance of their IDC Accounts as of the month-end
following such termination.
9.2 If Employer does not elect to pay accrued benefits on termination
of the Plan, he shall cease all deferrals of Compensation, but
payments of benefits shall be made pursuant to the applicable
provisions of Section 7 of the Plan and the irrevocable election
of the various Participation Agreements then in effect.
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