HomeMy WebLinkAboutCC RES 84-027RESOLUTION N0. 84- 27
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, ADOPTING A REVISED EMPLOYEES'
DEFERRED COMPENSATION PLAN, AND AUTHORIZING THE EXECU-
TION OF AGREEMENTS RELATIVE TO SAID PLAN.
WHEREAS, by Resolution No. 79-39 the City of Palm Desert did
adopt an Employees' Deferred Compensation Plan, and by Resolution No.
81-72 did amend said Plan; and
WHEREAS, it is desirable to amend said plan to assure that its
provisions are in conformity with current tax law and Internal Revenue
Service regulations interpreting said law;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Palm Desert that:
1. Resolution No. 81-72 is hereby rescinded;
2. The revised Employees' Deferred Compensation Plan and
Participation Agreement attached hereto as Exhibits "A" and
"B" are hereby established and adopted, to be effective
immediately and to remain in effect until terminated by
further resolution.
BE IT FURTHER RESOLVED 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, except that, Agreements with institutions pursuant to the provisions
of Sections 6.1 through 6.1 (e) shall be subject to approval by the City
Council, provided, further, that agreements executed heretofore shall continue
in full force and effect.
PASSED, APPROVED and ADOPTED at a regular meeting of the Palm
Desert City Council held on this 8th day of March
1984, by the following vote, to wit:
AYES: JACKSON, KELLY, PULUQI, WILSON & SNYDER
NOES: NONE
ABSENT: NONE
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'� 1 ATTEST:
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ABSTAIN: NONE
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Walter H. Snyder, Ma r
SHEILA R. GILLI AN, C
CITY OF PALM SERT,
Revised 3./8/84 Exhibit "A"
' • ; ilution No. 84- 27
�LOYEES' DEFERRED COI�ENSATZON PLAN
SECTION 1
NA:IE: The name o£ ihis Plan is the CITY OF PALM DESERT EI�LOYEES' DEFERRED
COI�'ENSATION PLAN (hereinaf ter ref erred to as the "Plan").
SECTION 2.
,PURPOSE: The purpose of this Plan is to enable Employees of the City of Palm Desert
'("Employer") to defer portions of their compensation and to provide retirement,
; disability and death benef its.
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SECTION 3.
DEFINITIONS: For the purpose of this Plaa, certain words or phrases used herein will
have the following meanings.
3.1 "Emploqer" means the Public Agency named in Section 1 hereinabove.
3.2 "Employee" means any officer or employee of the Employer 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 this Plan.
3.4 "Participation Agreement" stcall 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 shall be by written instrument
executed by the Participant unless otherwise provided. Beneficiary maq be
�� singular or plural, primary or contingent.
� 3.6 "Administrator" means the F.�aployer and/or other parties appointed by the
Employer to administor 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 Em�loyee (if he were not a participant
in the Plan) for actual services for the period�that he is a Participant.
3.8 "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 (inculding but not
limited to this Plan) or IRC Section 403 (b).
3.9 "Normal Retirement Age" means:
(a) Latest normal retirement age specified in any other plan maintained by the
Employer; or
(b) Age 65.
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DEFEI'.RED COMPENSATION PLAN - PAGE 2
3.10 "Payroll Period" med.�s the work perfod for which a,�+ check is issued.
3.11 "Retirement" means retirement from service with the Employer which be-
comes effective on the first day af the calendar month af ter Participant
meets the age and service requirements for retirements (including "early"
retirement) specified in the applicable retiremeat policies of the
Employer.
3.12 "Deferred Compensation" shall mean the amount of compensation not yet
earned, which the Participant and Employer mutually agree shall be
deferred in accordance with the provisions of this Plaa.
3.13• "Disability" meaas the inabilitq 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.
3.14 "Unforseeable Emergency" shall mean a severe financial hardship to
the Participaat or Beneficiary resulting from a sudden and unexpected
illness or accident of the Participaat or Beneficiarq, loss of the
Participant's or Beneficiary's property due to casualty, or other similar
extraordinarq and unforeseeable circumstances arising as a result of
eveats beyond the control of the Participant or Beneficiarq. Payment
may not be made to the exteat that such hardship is or may be relieved
(A) through reimbursemeat or compensation by insurance or otherwise,
(B) by liquidation of the Participant's or Beneficiary`s assets, to
the extent the liquidation of such assests would not itself cause severe
finaacial hardship, or (C) by cessation of deferrals under the plan.
Examples of what are not considered to be unforeseeable emergencies in-
clude the need to send a Participants's or Beneficiary's child to college
or the desire to purchase a home. Withdrawals of amounts because of an
unforeseeable emergency must only be permitted to the extent reasonably
needed to satisfq the emergency need.
SECTION 4.
PARTICIPATION IN THE PLAN:
4.1 An Employee designated by the Employer to be eligible may elect to
become a Participaat in the Plan by executing and filing a Partici-
pation Agreement with the Administrator. Aa election to Participate
in the Plan shall become effective with respect to Compensation
earned bq the Participant during the calendar mvnth next following
the date of the Participaat's election. Such election shall continue
thereafter in full force aad effect unless revoked by the Participant.
4.2 Each Partfcipation Agreement shall specify the amount, by dollar
amount or by percentage of gross compensation, which is to be deferred
pursuaat to the Plan and to be withheld out of the Compensation other-
wfse payable to the Participant for each Payroll Period. Except as
provided in Section 4.3, the maximum amount (Plan Ceiling) which may
be deferred under this plan for a taxable year shall be the lesser of
(a) $7,500; or (b) 33-1/3 percent of the Participant's Includible
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DEFERRED COMPENSATION PLAN - PAGE 3
Compensation. The �inimum amount which may be def._�ed is $S.Od per
Payroll Period.
4.3 For one or more of the Participant`s Iast three taxable years ending
before the taxable year in which he attains Normal Retirement Age as
defined in this Plan, the Plan ceiling shall be the Iessor of:
(a) $15,000 (reduced by any amouat excludible from the Participant's
gross income for the taxable year under Section 403(b) of the Code
on account of contributions made by the Employer); or
(b) The sum of (I) the Plan ceiling as established by Section.4.2 for
the taxable year (determiaed without regard to this Sectioa 4.3);
� and (2) so much.of the Plan ceiling established ia Section 4.2 for
� aay prior taxable year as has not theretofore been used to effect
deferral under Section 4.2 or this Section 4.3. A prior taxable
year shall be taken iato account oaly if: It begins after Decem-
ber 31, 1978; the Participant was eligible to participate in the
Plan during a11 or any portion of such year; and Compensation de-
ferred during such yesr was subject to The Plan Ceiling established
in Section 4.2.
4.4 A Partfcipant may revoke his election to participate in the Plan, and
thereby terminate further deferzal of his Compensation, by executing
and filing 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
revocatioa occurred; however, he may elect to become a participant for
subsequent calendar months after a lapse of not less than one month.
No amounts shall be payable to an employee upon revocation of his
participation in the Plan unless otherwise provided for in Section 7,
3.13 or 3.14. Any distribution to a Participant uader Section 3.13 shall
be deemed a revocation under this Section 4.4 and no further deferral
of Compensation will be made unless Participant subsequently re-elects
to participate as provided herein.
;---� 4.5 A Participant may change the amount of Compeasation 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 three
times in a calendar year.
4.6 A Participant may designate, in writing, a Beneficiary to receive any
benefit which may be paqable 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 S.
DEFERRAL OF COMPENSATION:
5.1 During the period of participation, the Employer shal.l not pay the
Participant his full compensation, but shall defer payment of such
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DEP'�:KtC�1J l.VP1Ci',IVJLi11UlV rL.eu� — rn�a,. .
part of his Compen. .ion as the Participant has sp� :ied in his
Participation Agree�ent. The Employer shall establish ia its re-
cords an Individual Deferred Compensation Account ("ZDC Account")
for each Participant, and summary of such IDC Accounts, to be
identif ied as a General Def erred Compensation Account ("GDC Ac-
count"), to provide a convenieat method of ineasuring its obligations
to each and all Participants under the Plan.
5.2 Neither the existeace of the Plan nor the IDC Accounts shall be
deemed to create a trust, aad the Employer shall at all times be
the legal and beneficial owaer of all assets of said IDC Accouats.
5.3 All Amounts Deferred under this Plaa; a21 property and rights �
purchased with such amounts, and all income attzibutable to such
amounts, property or rights, shall remian soley the property and �.
rights of the Employer (without beiag restricted to the provision �
of benefits under the Plan), subject to the claims of the Employer's
geaeral creditors onlq, uatil paid or otherwise made available to the
Participant or his Beneficiary under the Plan. Accordingly, a Parti-
cipant has no claim for the Amouats Deferred either against the IDC
Account, the GDC Accouat or any other investment fund.
5.4 Distribution of Amounts Deferred:
(a) Earliest Date. Amouats deferTed under this Plan may be deferred
to a date which shall be no earlier than the earliest of (1)
date the Participaat retires or otherwise separates from service
with the Employer; (2) date particfpant establfshes that he or
she is faced with an unforeseeable emergency; or (3) date of
Participant's death.
(b) Latest Date. Paqment of the Account must commence on a date not
later than the Iatest of: (1) 60 days after the close of the
plan year in which the Participant attains Normal Retirement Age,
or (2) the close of the plan year in which Participaat Separates
from service with the Employer.
SECTZON 6.
ADMINISTRATION OF THE PLAN:
6.1 The Plan shall be administered by the Administrator under the direction
of the Empioyer. Acting for and in behalf of the Employer, the Admini-
strator may transmit amounts in the IDC Accounts to such iavestment
plans as hereafter may be approved by the Employer. In zegard to such
investments, written agreements between the Employer and the institutions
accepting funds for investment shall contain at Ieast the following
provisions:
(a) Any investment of amounts in the IDC Accounts, includiag earnings on
such amounts, shall be made according to written instructions of the
Administrator. '
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DEFERRED COMPENSATION PLAN - PAGE 5
(b) The Employer shall be the legal and beneficial owner of aIl amounts
invested (as between Employer and Participant). The Emploper shall
hold a11 certificates, polfcies and other documeats evidencing owner-
ship of the amounts invested, and shall maintain records, including
records of the IDC Account of each Participant aad the GDC Account.
(c) No less frequently than quarterlq, the Employer shall be furnished
with written reports showing the fair market value and/or the cur-
rent balance of the amount invested (including iaterest and dividends
accrued, if any), and amounts showa in such reports shall be reflect-
ed in each Participant's IDC Account bq the Employer.
j (d) No less frequentZy than quarterlq, each Participant shall be furnished
� with a statement showing transactions, eamings and the current bal-
ance of the amounts invested from his IDC Account.
(e) The Employer shall have the sole right to vote anq shares of stock on
proxies which it may acquire or be entitled to by investment of IDC
Account funds.
6.2 The Admiaistrator si1a11 record promptly and accurately all transactions
pertaining to Participants' Deferred Compensation in their IDC Accouats,
aad 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 alI questions arising out of the admini-
stration, interpretation and application of the Plan. All determinations
shall be conclusive and binding.
6.5 Prior to the time specified in Section 7 of the Plan for payment to
Participant each Participant shall elect, by filing a Participation
Agreement with the Administrator the time, maaner and (if applicable)
the amount of benefits to be paid to him, or in the event of his death
�� to his Beneficiary, under the Plaa. If ao election is made a payment
I3 may be made as a lump sum distribution.
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6.6 In the event that the Emplcyer should purchase an annuity as a means
of investment and distributioa of funds in a Participant's IDC Account,
the Employer shall be both the owner aad the named beneficiarq of such
annuity contract.
6.7 If the Plan provides for more than one type of investment objective,
a Participant may request a change in preference of invesfinent (as
provided in Section 4.4). Such request may be made only with respect
to compensation not yet earned aad deferred. The Employer may, but
is not required to, honor such request. The miaimum investment in
each tqpe of investment shall be Five Dollars ($5.00) per Payroll
Period. Nothing contained in this Plan shall be construed as requiring
the Employer to iavest deferred amounts or as limiting the Employer's
discretion with respect to making investments.
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DEFERRED CUMY�:NJA'1'LUIV YLAIv — rr.�c, u
SECTION 7.
BENEFITS:
The Employer shall pay to the Participant, or to his Beneficiary, if applicable,
the amouat in such Participant's IDC Account as of the month-end following the
Participant's termination, retirement, total disability or death. Distxibution
of Benefits under the Plan will be made, or if in installments, shall commence
not later than sixty (6Q) days after notice to the Administrator of the occur-
rence of the events or birthday described in Section 7 ualess otherwise specif i-
cally provided in the Participation Agreement. All distributions shall be
subject to anq State or Federal taxes required to be withheld. Paqment sha11
be made ia accordance with the election filed with the Administrator except in
the event of Unforeseeable Emergency described in Section 3.13.
Installment distributions shall be in approximately equal installments which
shall be intended to exhaust the balance due Participant 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 foregoing, if any method elected by the Participant shall
result in installmeat payments of Iess than $25, the Emploqer sha11 make payments
on an annual basis aggregatiag iastallments otherwise due; or if the balance due
Participant or Beneficiary is less than $1,000, Employer may discharge its obliga-
tion 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 such manner as is approved by the
Admiaistrator aad designated by Participant by written notice to the
Administrator given not less than sixty (60) days prior to the
scheduled retirement date. If no such election is made, Administrator
may, in its sole disczetion, make distribution in a lump sum or annual
installments over a period not to exceed the longer of number of years
of participants's life expectancy actuarially determined as of the date
of retirement or 10 years.
7.2 Other Termination. In the event of termination before Retirement for.
reasons other than Unforeseeable Emergency defined ia Section 3.13,
then the full benefits credited to Participant's IDC Accouat, plus or
minus subsequent gains or losses, shall be distributed to him in the
manner provided by written notice given no later than thirty (30) days
subsequent to such termination or at the election of the Admiaistrator
either in a lump sum, or in annual payments over a period not to ex-
ceed tea (10) years from date of distribution begins.
SECTION 8.
MISCELLANEOUS:
8.1 The contractual obligation of the Employer to the Participant establisheci
bq the Plan sha11 not be assignable in whole or part, voluatarily or by
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Revised 3/8/84
Exhibit "B"
CZTY OF PALM DESERT
Employee Number
Social Security Number
EMPLOYEES' DEFERRED COMPENSATION PLAN
PARTICIPATION AGREEMENT
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THIS AGREEMENT, made by and between the CITY OF PALM DESERT, hereinafter
referred to as "Employer" and
WHEREA5, The Employer has established the "CITY OF PALM DESERT EI�LOYEES'
DEFERRED COI�ENSATION PLAN", hereinafter referred to as "Plan" for the
beaefit of its employees, and
WHEREAS, the Plaa provides that any employee, subject to the limitations
established in the Plan of the Emplayer, may elect to join and become a
Participant in the Plan upoa executing and filing with the Employer a
Participation Agreement, and
WHEREAS, the Employee desires to join and become a Participant in the Plan,
WHEREAS, this is an ( ) initial ( ) amended Participation Agreement,
NOW, THEREFORE, the Employer and the Employee agree as follows:
a. Amount of Compensation per Payroll Period $ (aot
less than $120 per qear).
or
1. Employer has provided the Employee with a current copy of the Plan.
2. Employee hereby elects to become a Participant ia the Plan and to
defer payments pursuant to the Plan as follows:
b. Percentage of Compensation per Payroll Period •
percent (not less than $120 per year, rounded up�to the nearest
dollar). •
The maximum amount deferred annually may not exceed the lesser
of $7,500.00 or 33-1/3X of Includible Compensation. See Plan
for further description.
3. Employee agrees that his rights to the Deferred Compensation shall
be governed by all terms and conditions of the Plan.
4. The Employee designates his investment objective to be saviags aad
loan accounts. Employer may recognize this objective, but is not
required hereby to do so.
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, �P10}�Ca i�uwucL
Social Security Number � '
Under Section 7 of the Plan, the Employee elects the following distribution
of benef its :
At Retirement or other termination (except total disability)
1. ( ) Lump Sum X
2. ( ) Installments payable over years Z(not to exceed
15 qears)
3. ( ) Iastallments payable for Years of Life Expectancy z �
(Number of years de'termined by Standard American mortality �
tables)
;
( ) Monthly ( ) Quarterly ( ) Annually
4. ( ) Aaauity ( ) 10 qears certain & life annuity
( ) Single life annuity
Distribution to commence on retirement ( ) or to age (not later
thaa normal retirement age).
At Tota� Permanent Disability •
1. ( ) Lump Sum Z ,
2. ( ) Installments paqable monthly over years X(not to
exceed 15 years)
3. ( ) Lif e Annuity (monthly) X .
At Death Balance Payable to Beneficiary
1. ( ) Lump Sum X
2. ( ) Installments payable over (not to exceed 10 years)
3. ( ) Anauity
( ) Lif e Annuity ( ) 120 months certaia & life
The Employee designates the following persons as his Beneficiaries to receive,
in the event of his death, anq benefits to which he is entitled uader the Flaa:
Name of Beneficiary Address of Beneficiary
a.
b.
c.
d.
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Employee Number
r.
Social Security Numbex�
If more than one person is named as Beneficiary, any paymeats to which they
may be entitled shall be paid as follows (choose one):
( ) Wholly to the person designated as the first Beneficiarq above,
provided (she) -(he) does not, survive me, in equal shares to
the remaining Beneficiaries who survive me.
( ) In equal shares, to such of the designated Beneficiaries as shall
then be living.
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I hereby reserve the right to change or revoke this Beneficiarq designation
without notice to any Beneficiary.
This Participatioa Agreement sha11 be and remain in effect ccnless revoked or
amended by subsequent written agreement filed with [he Plan Administrator
prior to tenaination of employment.
Dated: 19
CITY OF PALM DESERT
EMPLOYEE
Address
City, State
Social Security Number
EMPLOYER
sy:
Its:
I hereby agree to the designation as beneficiary as shown above. (Spouse to
sign only if not named above as sole first beneficiary.)
SPOUSE OF EMPLOYEE
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DEFERRED COMPE�SATION PLAN - PAGE 7
operation of law, and no right or interest of a ParLicipant pursuant
to the Plan shall be subject to any obligation or liability of such
Participant or his Beneficiary, except as provided in the next para-
graph 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 modi-
fied or in any way affected thereby.
8.3 Each Participant herein expressly agrees for himself aad his Beneficiary
that he sha11 Iook solely to the geaeral assets of the Employer for the
, payment of any such benefit to which he may become,eatitled under the
; Plan, and acknowledges that all amoun[s deferred hereunder siiall 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 appli-
cable State law.
8.5 Captions used in the Plan are for the purpose of convenience onlq,
and shall not limit, restrict or enlarge the provisions of the Plan.
8.6 The Plan shall be biading upon and shall inure to the benefit of the
Employer, its successors and assigas, all Participants and Beneficiaries,
and their heirs, aad legal representatives.
8.7 As used in the Plan, the masculine or feminine or neuter gender, and the
singular or plural number shall each be deemed to include the others un-
less the context clearly indicates otherwise.
8.8 Any notice or other coa�unicatioa required or permitted under the Plan
shall be in writing aad, if directed to the Employer, shall be sent to
the Administrator at his principal office; aad, if directed to a Parti-
cipant or a Beneficiary, shall be sent to such Participant or Beneficiary
at his last know address as it appears on the Employer's records. Such
notice sha21 be deemed given when mailed.
8.9 Deductions for Participant's contributions to retirement assaciations
shal.l 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.
8.11 An approved leave of absence without pay shall be considered to be a
temporary suspension of participation in the Plan. Participation 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 P2an.
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SECTION 9.
PLAN TO PLAN TRANSFERS:
9.1 Amounts deferred pursuant to this plan may be transferred to a deferred
compensation plan maintained by any public agency located within the
State of California provided:
(a) The emploqer accepting the transfer of funds gives written notice
' of its agreement to accept such traasfer and assume liability
therefore, and
(b) Participaat provides a written release to Employer releasing Employer
from any claim or liabilitq under the Plan after the date of such
transfer of funds occurs.
SECTION 10.
TERMZNATION 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 Partici-
pant or Beneficiarq which may already have accrued.
10.1 If the Plan is termiaated by the Employer, the Emp2oyer may elect to
distribute, in the same manner to all Participants, amounts equal to
the balaace of their IDC Accounts as of the month-end following such
termination.
10.2 If Employer does not elect to pay accrued benefits on termination of
the Plan, he shall cease all deferrals of Compensation, but payments
of benef its shall be made pursuaat to the applicable provisioas of
Section 7 of the Plan and the election of the various Participant
Agreements then in effect.
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