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HomeMy WebLinkAboutRES CC 2004 2174 2004 0303RESOLUTION NO. 2004 -2174 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AUTHORIZING THE ESTABLISHMENT OF A 401 (a) MONEY PURCHASE PLAN WITH THE ICMA RETIREMENT CORPORATION WHEREAS, the City of Moorpark ( "CITY ") has employees rendering valuable services; and WHEREAS, the establishment of a money purchase retirement plan benefits such employees by providing funds for retirement and funds for their beneficiaries in the event of death; and WHEREAS, the City desires that its money purchase retirement plan be administered by the ICMA Retirement Corporation and that the funds held under such plan be invested in the ICMA Retirement Trust, a trust established by public employers for the collective investment of funds held under their retirement and deferred compensation plans. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That the City Council does hereby authorize the establishment of a money purchase retirement plan (the `Plan ") in the form of the ICMA Retirement Corporation Governmental Money Purchase Plan & Trust, pursuant to the specific provisions of the Adoption Agreement (executed copy attached hereto). SECTION 2. That the Plan shall be maintained for the exclusive benefit of eligible employees and their beneficiaries. SECTION 3. That the City hereby executes the Declaration of Trust of the ICMA Retirement Trust, attached hereto, intending this execution to be operative with respect to any retirement or deferred compensation plan subsequently established by the City, if the assets of the plan are to be invested in the ICMA Retirement Trust. SECTION 4. That the City hereby agrees to serve as trustee under the Plan and to invest funds held under the Plan in the ICMA Retirement Trust; and Resolution No. 2004 -2174 Page 2 SECTION 5. That the City Manager is hereby authorized to designate the City staff member to act as coordinator for the Plan and to receive reports, notices, etc., from the ICMA Retirement Corporation or the ICMA Retirement Trust; and the City Manager or his /her designee shall cast, on behalf of the City, any required votes under the ICMA Retirement Trust; and the City Manager or his /her designee is authorized to execute all necessary agreements with the ICMA Retirement Corporation incidental to the administration of the Plan. Administrative duties to carry out the Plan may be assigned to the appropriate City staff member. SECTION 6. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original Resolutions. PASSED AND ADOPTED this ATTEST: �:I Is, n=xw�m� Deborah S. TraffenstVdt, City Clerk Attachments: 1. ICMA Retirement Corporation Governmental Money Purchase Plan & Trust Adoption Agreement 2. Declaration of Trust Resolution No. 2004-2174 ATTACHMENT RETIREMENT CORPORATION ATTACHMENT 1. Page 3 GOVERNMENTAL MONEY PURCHASE PLAN & TRUST ADOPTION AGREEMENT Account Number 10- 8573 The Employer hereby establishes a Money Purchase Plan and Trust to be known as (the "Plan ") in the form of the ICMA Retirement Corporation Governmental Money Purchase Plan andTrust.The Plan shall be known as: City of Moorpark 401 (a) Plan /90611 This Plan is an amendment and restatement of an existing defined contribution money purchase plan. ❑ Yes Q No If yes, please specify the name of the defined contribution money purchase plan which this Plan hereby amends and restates: I. Employer Name: City of Moorpark II. The Effective Date of the Plan shall be the first day of the Plan Year during which the Employer adopts the Plan, unless an alternate Effective Date is hereby specified: January 1, 2004 IV O Plan Year will mean: Vol J 19o21 The twelve (12) consecutive month period which coincides with the limita- tion year. (See Section 5.04(1) of the Plan.) 18131 The twelve (12) consecutive month period commencing on and each anniversary thereafter. Normal Retirement Age (not to exceed age 65) shall be age 55 ELIGIBILITY REQUIREMENTS: 1. The following group(s) of Employees are eligible to participate in the Plan: All Employees All Full -Time Employees Salaried Employees Non -union Employees Management Employees Public Safety Employees General Employees X Other (specify below): City Manager Assistant City Manager Department Heads MVV.q�:optwn Agreement 4iii'�i?f1U;1 1'803; (2881 Resolution No. 2004 -2174 Page 4 The group specified must correspond to a group of the same designation that is defined III the statutes, ordinances, rules, regulations, personnel manuals or other material in ett c.t II] the state or locality of the Employer. _'. The Employer hereby waives or reduces the requirement of a twelve (12) month Period of Service for participation. The required Period of Service shall be —0— write N/A if an Employee is eligible to participate upon eniployrnent). 13941 If this %vaiver or reduction is elected, it shall apply to all Employees within the Covered Employment Classification. 3. A niitiimum age requirement is hereby specified for eligibility to participate. The minimum age requirement is N/A (not to exceed age 21). Write N/A if no mini- 1.3411 ►nurii age is declared. VI. CONTRIBUTION PROVISIONS The Employer shall contribute as follows (choose one): r.l Fixed Employer Contributions With Or Without Mandatory Participant Contributions. The Employer shall contribute on behalf of each Participant 2 • 5 `iG of earnings or $ N/A for the P1anYear (subject to the limitations ofArticleV ofthe Plan). Each Participant is required to contribute _ n ')% of earnings or $ pU A for the Plan Year as a condition ot" participation in the Plan. (Write "U" if no contribution is required.) If Participant Contributions are required under this option, a Participant shall riot have the right to discontinue or vary the rate of such contribu- tions after becoming; a Plan Participant. The Employer hereby elects to "pick up" the Mandatory /Required Participant Contribution. ZJ Yes ❑ No 16211 The pick -up provision specifies that the contribution is treated, for federal income tax purposes, as though it is made by the employer.The pick -up provision allows the employee to defer taxes on the employee mandatory contribution.The actual result is the same as if the contribu- tion were a reduction in that employee's salary by the amount of the contribution. Picked up contributions are NOT exenipt from Social Security t:rx [Note to Employer: A determination letter issued to an adopting Em- ployer is not a ruling; by the Internal Revenue Service that Participant contributions that are picked up by the Employer are not includable in the Participant's gross income for federal income tax purposes. The Employer may seek such a ruling. MPP Adoption Agreerrrent 4/3(/201)0 Resolution No. 2004 -2174 Page 5 [Picked up contributions are excludable from the Participant's gross income under section 414(h)(2) of the Internal Kevenue Code of 1�)8 only if they meet the requirements of ltev. llul. S 1 -35, 1981 -1 C.B. 255. Those requirements are (1) that the Employer must specify that the contributions, although designated as employee contributions, are being paid by the Employer in lieu of contributions by the employee; and (2) the employee must not have the option of receiving the contributed amounts directly instead of having them paid by the Employer to the plan.] Fixed Employer Match of Participant Contributions. The Employer shall contribute on behalf of each Participant "n of Earnings for the PlanYear (subject to the linritatiorrs of Article V of the Plan) for each PlanYear that such Participant has contributed _' of Earnings or S . Under this option, there is a single, fixed rate of Employer contributions, but a Participant may decline to make the required Participant contributions in any Plan Year, in which case no Emplover contribution will be made on the Participant's behalf iri that Plan Year. Variable Employer Match Of Participant Contributions. The Employer shall contribute on behalf of each Participant an amount determined as follows (subject to the ]imitations of Article V of the Plan): ,moo of the contributions made by the Participant for the Plan Year (not including Participant contributions exceeding ° r of Earnings or S ); PLUS % of the contributions made by the Participant for the Plan Year in excess of those included in the above paragraph (but riot including Participant contributions exceeding in the aggregate of Earnings or S ). Employer Contributions on behalf of a Participant for a Plan Year shall not exceed S or % of Earnings, whichever is more or less. 2. Each Participant may make a voluntary (unmatched), after -tax contribution, subject to the limitations of Section 4.05 and ArticleV of the Plan. ! j Yes MPPAdopt•.on Agreement 41 i(-,')OWj J No Resolution No. 2004 -2174 Page 6 3. Employer contributions and Participant contributions shall be contributed to the Trust in accordance with the following payment schedule: (please circle one choice) (0 Bi- Weekly_ 1 Weekly 2 Semi- Vvicekly 3 131- Monthly 4 Monthly 5 Serni- Monthly 6 Bi- Quarterly 7 Quarterly S Semi - Quarterly 9 Bi- Annually 10 Annually 11 Senil- Annually VII. EARNINGS Earnings, as defined under Section 2.09 of the Plan, shall include: (a) Overtime ❑ Yes J No (b) Bonuses ❑ Yes J No VIII. LIMITATION ON ALLOCATIONS If the Employer maintains or ever maintained another qualified plan in which any Participant ill this Plan is (or was) a participant or could possibly become a participant, the Employer hereby agrees to limit contributions to all such plans as provided herein, if necessary in order to avoid excess contributions (as described in Sections 5.02 and 5.(73 of the flan). 1. If the Participant is covered under another qualified defined contribution plan nuairl- tained by the Employer, the provisions of Section 5.02(a) through (I) o[ the Pi,ul Will apply unless another method has been indicated below. ❑ Other Method. (Provide the method under which the plans will limit total Annual Additions to the Maximurn Permissible Amount, and will properly reduce any excess amounts, in a manner that precludes Em- ployer discretion.) 2. If the Participant is or has ever been a participant in a defined benefit plan maintained by the Employer, and if the limitation in Section 5.03 of the Plan would be exceeded, then the Participant's Projected Annual Benefit under the defined benefit plan shall be reduced in accordance with the terns thereof to the extent necessary to satisfy such limitation. If such plan does not provide for such reduction, or if the limitation is still exceeded after the reduction, annual additions shall be reduced to the extent necessary in the manner described in Sections 5.02 and 5.02. The methods of avoiding the limita- tion described in this paragraph will not apply if the Employer indicates another method below. Resolution No. 2004 -2174 Page 7 J Other Method. (Note to Employer: provide below language which will satisty the I) limitation of section 415(e) of the Code. Such language must preclude Employer discretion. See section 1.415 -1 of the Regulations for guidance.') IX. X XI 3. The limitation year is the following 12- consecutive month period: VES -KING PP.OVISIONS 'File Employer herebv specifies the following vesting schedule, subject to (1) the minlmul-11 vesting requirements as noted and (2) the concurrence of the Plan Administrator. Years of Service Percent Completed Vesting 100% Vested Zero %, One Tvvo Three % Four Five ;o Six % Seven %, Eight % Nine do Te n 1r0 of at time ""plan entry Loads are permitted under the Plan, as provided in Article XIII: j Yes QU N o The Employer hereby attests that it is a unit of state or local government or an agency or instrumentality of one or more units of state or local government. XIL The flan Administrator hereby agrees to inform the Employer of any amendments to the Plan made pursuant to Section 14.05 of the flan or of the discontinuance or abandonment of the Plan. XIII. The Employer hereby appoints the ICMA Retirement Corporation as the plan Adrnirlistra- tor pursuant to the terms and conditions of the ICMA RETIREMENT CORPORA- TION GOVERNMENTAL MONEY PURCHASE PLAN &TRUST. The Employer hereby agrees to the provisions of the Plan arid Trust. /,st/ X11'1' Adopuoa A�:rertent -t!in; 200(� � Resolution No. 2004 -2174 Page 8 XIV The F.ntployer herehy ac-knowled -es it understands that failure to properly fill out this Adoption Agreement indy result in disqualification of the Plan. XV. An adopting; Employer may not rely on a determination letter issued by the National or District Office ofthe Internal Revenue Service as evidence that the Plan is qualified under Section 401 of the Inter- nal Revenue Code. In order to obtain reliance with respect to plan qualification, the Employer must apply to the appropriate key district office for a determination letter. In Witness Whereof, the Emplover hereby causes this Agreement to be executed on this day of 200 EMPLOYER Iiv: Steven Kueny Title: City Manager Attest: ACCEPTED: ICMA RETIREMENT CORPORATION Title: Corporate Secretary Attest: N1 N' Ado,pi:on ALirn.,m)t 4,30.'2,)t)(? Resolution No. 2004 -2174 ATTACHMENT 2. Page 9 DECLARATION OF TRUST This Declaration of'Irust (the "Group Trust agreement ") is made as of the 19th day of May, 2001, by VantageTrust Company, which declares itself to be the sole Trustee of the trust hereby created. WHEREAS, the ICMA Retirement Trust was created as a vehicle for the commingling of the assets of governmental plans and governmental units described in Section 818(a)(6) of the Internal Revenue Code of 1986, as amended, pursuant to a Declaration of Trust dated October 4, 1982, as subsequently amended, a copy of which is attached hereto and incorporated by reference as set out below (the "ICMA Declaration "); and WHEREAS, the trust created hereunder (the "Group Trust ") is intended to meet the requirements of Revenue Ruling 81 -100, 1981 -1 C.B. 326, and is established as a common trust fund within the meaning of Section 391:1 of -1 -isle 35 of the New Hampshire Revised Statutes Annotated, to accept and hold for investment purposes the assets of the Deferred Compensation and Qualified Plans held by and through the ICMA Retirement Trust. NOW, THEREFORE, the Group Trust is created by the execution of this Declaration of Trust by the Trustee and is established with respect to each Deferred Compensation and Qualified Plan by the transfer to the Trustee of such Plan's assets in the ICMA Retirement Trust, by the Trustees thereof, in accord with the following provisions: Incorporation of ICMA Declaration by Reference; ICMA By -Laws. Except as otherwise provided in this Group Trust Agreement, and to the extent not inconsistent herewith, all provisions of the ICMA Declaration are incorporated herein by reference and made a part hereof, to be read by substituting the Group Trust for the Retirement Trust and the Trustee for the Board of Trustees referenced therein. In this respect, unless the context clearly indicates otherwise, all capitalized terms used herein and defined in the ICMA Declaration have the meanings assigned to them in the ICNLN Declaration. In addition, the By- Laws of the [CivUk Retirement Trust, as the same may be amended from time -to -time, are adopted as th,: By -Laws of the Group Trust to the extent not inconsistent with the terms of this Group Trust Agreement. Notwithstanding the foregoing, the terms of the ICMA Declaration and By -Laws are further modified with respect to the Group Trust created hereunder, as follows: (a) any reporting, distribution, or other obligation of the Group Trust vis -a -vis any Deferred Compensation Plan, Qualified Plan, Public Employer, Public Employer Trustee, or Employer Trust shall be deemed satisfied to the extent that such obligation is undertaken by the ICMA Retirement Trust (in which case the obligation of the Group Trust shall run to the ICMA Retirement Trust); and (b) all provisions dealing with the number, qualification, election, term and nomination of Trustees shall not apply, and all other provisions relating to trustees (including, but not limited to, resignation and removal) shall be interpreted in a manner consistent with the appointment of a single corporate trustee. 2. Compliance with Revenue Procedure 81 -100. The requirements of Revenue Procedure 81 -100 are applicable to the Group Trust as follows: (a) Pursuant to the terms of this Group Trust Agreement and Article X of the By -Laws, invest- ment in the Group Trust is limited to assets of Deferred Compensation and Qualified Plans, investing through the ICMA Retirement Trust. Resolution No. 2004 -2174 Page 10 (b? Pursuant to the By- Laws, the Croup Trust is adopted as a part of each Qualified Plan that invests herein through the ICMA Retirement Trust. (c) In accord with the By -Laws, that part of the Group Trust', corpus or income which equitably belongs to any Deferred Compensation a-nd Qualified Plan may not be used for or diverted to any purposes other than for the exclusive benefit of the Plan's employees or their benefici- aries who are entitled to benefits under such Plan. (d) In accord with the By -Laws, no Deferred Compensation Plan or Qualified Plan may assign any or part of its equity or interest in the Group Trust, and any purported assignment of such equity or interest shall be void. 3. Governing Law. Except as other%vise required by federal, state or local law. this Declaration of Trust (including the ICNIA Declaration to the extent incorporated herein) and the Group Trust created hereun- &r shall be construed and determined in accordance with applicable laws of the State of New Hampshire. Judicial Proceedings. The Trustee may at any time initiate an action or proceeding in the appropriate state or federal courts within or outside the stare of New Hampshire for the settlement of its accounts or for the determination of anV question of construction which may arise or for instructions. IN WITNESS WHEREOF, the Trustee has executed this Declaration of -Crust as of the day and year first above written. VANTAGETRUST COMPANY By, 1. c S,-�7 /,�A Name: Paul F. Gallagher Cit1e: Assistant Secretary Resolution No. 2004 -2174 Page 11 STATE OF CALIFORNIA ) COUNTY OF VENTURA ) CITY OF MOORPARK ) ss. I, Deborah S. Traffenstedt, City Clerk of the City of Moorpark, California, do hereby certify under penalty of perjury that the foregoing Resolution No. 2004 -2174 adopted by the City Council of the City of Moorpark at a regular meeting held on the 3rd of March, 2004, and that the same was adopted by the following vote: AYES: Councilmembers Harper, and Mayor Hunter NOES: None ABSENT: None ABSTAIN: None Mikos, Millhouse, Parvin WITNESS my hand and the official seal of said City this 12th day of March, 2004. �:' ),zW, = z - I r V� Deborah S. TraffenstAIrf, City Clerk (seal)