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HomeMy WebLinkAbout04/15/1997, C-8 - COMPENSATION ADJUSTMENTS FOR APPOINTED OFFICIALS council April 15, 1997 j agenda RepoRt ft.N-b� CITY OF SAN LUIS O B I S P O FROM: Ann Slate,Director of PersonneRYL, SUBJECT: Compensation Adjustments for Appointed Officials CAO RECOMMENDATION (A)Adopt resolution adjusting annual salary and other benefits of the City Administrative Officer (B)Adopt resohition adjusting annual salary and other benefits of the City Attorney (C)Adopt resolution establishing an executive plan under Section 401(a) of the Internal Revenue Code DISCUSSION In accordance with the Management Compensation Plan for Appointed Officials, Department Heads and Other Management Personnel, Resolution No. 8552 (1996 Series), the City Council is authorized to approve annual salary adjustments for appointed officials. The last salary adjustments,approved by Council for appointed officials were effective April, 1996. Performance evaluations were conducted on March 25, 1997 in closed session. The Council preliminarily approved the following adjustments to annual salaries and related benefits for appointed officials. CITY ADMINISTRATIVE OFFICER The current monthly salary of$8,015 shall be increased by 3.5% to $8,296 effective April 3, 1997. In addition, the City will contribute 1.5% to salary to a 401(a) money purchase retirement plan. The annual administrative leave of 80 hours which currently can be taken in time off or in pay will be converted to a pay-only provision to be included in salary for eventual retirement pay calculation purposes. CITY ATTORNEY The current monthly salary of$7,085 shall be increased by 4% to $7,368 effective April 3, 1997. In addition, the City will contribute .5% of salary to a 401 (a) money purchase retirement plan. The Internal Revenue Code requires a public agency to adopt a resolution outlining the public agency's intention of establishing a 401 (a) plan. The plan will be administered by the ICMA Retirement Corporation(RC). RC is currently one of three administrators for the City's deferred compensation Council Agenda Report-Approval of Appointed Officials' Compensation Adjustments Page 2 program and serves more than 4,300 government employers with 180,000 participants nationwide. The City currently provides appointed officials and department heads with a contribution equal to 2% of salary toward a 457 deferred compensation program. With the advent of the 401 (a) plan, the appointed officials will transfer their 2%deferred compensation contribution to the 401 (a) plan which requires anemployer contribution. FISCAL EMPACT The cost for these adjustments is $2,174 for the remainder of FY96-97 and available within existing resources. Approximately $8700 will be appropriated as part of the current financial planning process for FY97-98. Since appointed officials and department heads currently have the option of taking administrative leave in pay, the conversion of administrative leave to a pay-only provision is cost neutral. Attachments Resolution-City Administrative Officer Compensation Adjustment Resolution-City Attorney compensation Adjustment Resolution-Establishment of a 401(a)Money Purchase Retirement Plan and Agreement. RESOLUTION NO. (1997 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO ADJUSTING COMPENSATION FOR THE CITY ADbUNISTRATTYE OFFICER WHEREAS, by Resolution No. 6198 (1987 Series), the City Council appointed John Dunn as City Administrative Officer; and WHEREAS, by Resolution No. 8524 (1996 Series), the City Council established compensation for City Administrative Officer John Dunn. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Effective April 3, 1997, the City Administrative Officer's salary shall increase from$8,015 per month to $8,296 per month. SECTION 2. The City will contribute 3.5% of salary to a 401(a) money purchase retirement plan and discontinue the 2% of salary contribution to the 457 deferred compensation plan. SECTION 3. The annual administrative leave of 80 hours will be converted to a pay-only provision to be included in salary. SECTION 4. All other compensation and benefits afforded the City Administrative Officer under the Appointed Officials Compensation Plan (Resolution No. 8412 - 1995 Series), and the City Administrative Officer Employment Agreement (Resolution No. 6198 - 1987 Series), not superseded by the above, shall remain in full force and effect. SECTION 5. The City Council shall evaluate the perfon;nance of the City Administrative Officer annually. On motion of Council Member , seconded by Council Member , and on the following roll call vote: AYES: NOES: ABSENT: c-�-3 i Resolution No. (1997 Series) Page.2.. The foregoing Resolution,was passed and adopted this day of 1997. MAYOR ALLEN SETTLE. ATTEST:. BONNIE GAWF, CITY CLERK — i APPROVED AS TO FORM: CITY ATTORNEY �I i I i Ij . i i i RESOLUTION NO. (1997 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO ADJUSTING COMPENSATION FOR THE CITY ATTORNEY WHEREAS, by Resolution No. 6689 (1989 Series), the City Council appointed Jeffrey Jorgensen as City Attorney; and WHEREAS, the City Council has evaluated compensation factors for the City Attorney under Section 2 of the Managerial Compensation Plan for Appointed Officials et.aL (Resolution No. 8412 - 1995 Series); and WHEREAS, by Resolution No. 8525 (1996 Series), the City Council established compensation for City Attorney Jeffrey Jorgensen, NOW, THEREFORE BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Effective April 3, 1997 the City Attorney's salary shall increase from$7,085 per month to $7,368 per month. SECTION 2. The City will contribute toward a 401(a) money purchase retirement plan in the amount of 2.5% of salary and discontinue the 2% contribution toward the 457 deferred compensation plan. SECTION 3. All other compensation and benefits afforded the City Attorney under the Appointed Officials Compensation Plan (Resolution No. 8412 - 1995 Series), and the City Attorney Employment Agreement (Resolution No. 6689 - 1989 Series) not superseded by the above, shall remain in full force and effect. SECTION 4. The City Council shall evaluate the performance of the City Attorney annually. On motion of Council Member , seconded by Council Member , and on.the following roll call vote: AYES: NOES: ABSENT: f'S/ Resolution No. (1997 Series) } Page 2. The foregoing Resolution was passed andadopted this d-ay of ; 1997. - MAYORALL.EN SETTLE- I ATTEST: 90NNIE OAWF, CITY CLERK - - i APPROVED AS TO.FORM: JE_FFREY G:JORGENSEN, CITY ATTORNEY i i ,I I i I j I RESOLUTION NO. (1997 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO ESTABLISHING AN EXEUCTIVE MONEY PURCHASE RETIREMENT PLAN UNDER SECTION 401 (A)OF THE INTERNAL REVENUE CODE WHEREAS, the City .Administrative Officer and the City Attorney provide valuable services for the City of San Luis Obispo;and WHEREAS, the establishment of a money purchase retirement plan benefits employees by Providing supplemental funds for retirement and funds for their beneficiaries in the event of death;and WHEREAS, the City of San Luis Obispo 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, BE IT RESOLVED, that the City Council of the City of San Luis Obispo hereby establishes a money purchase retirement plan (the "Plan') in the form of the ICMA Retirement Prototype Money Purchase Plan and Trust for the City Administrative Officer and the City Attorney pursuant to the specific provisions of the Adoption Agreements (executed copies attached hereto). The plan shall be maintained for the exclusive benefit of eligible employees and their beneficiaries,and BE IT FURTHER RESOLVED,that the City of San Luis Obispo hereby directs the Personnel Director to execute the Declaration of Trust of the ICMA Retirement Trust attached hereto, intending this execution to be operative with respect to any retirement or defaced compensation plan thesubsequ edbyt City of San Luis Obispo, if the assets of the plan are to be invested in 1CMA Retirement Tand, BE IT FURTHER RESOLVED, that the City of San Luis Obispo hereby agrees to serve as trustee under the Plan and to invest funds help under the Plan in the ICMA Retirement Trust;and, BE IT FURTHER RESOLVED, that the Personnel Director shall be the coordinator for the Plan; shall receive necessary reports, notices, etc., from the ICMA Retirement Corporation or the ICMA Retirement Trust;shall cast on behalf of the City of San Luis Obispo, any required votes under the ICMA Retirement Trust;may delegate any administrative duties relating to the plan to appropriate departments;and, BE IT FURTHER RESOLVED,that the City of San Luis Obispo hereby authorizes Personnel Director to execute all necessary agreements with the ICMA Retirement Corporation incidental to the administration of the Plan. Upon motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: i i Resolution No. (1997 Series) Page 2 - the foregoing resolution was adopted this___ _ _ day of _ __I. 1997. I ATTEST. i I Cit - Clerk Ma or Allen K:,Settle APPROVED AS'TO FORM: i City morney I I . i 1 i i i i a I I, ICMA RETIREMENT CORPORATION PROTOTYPE MONEY PURCHASE PLAN &TRUST ADOPTION AGREEMENT #001 Account Number 9680 The Em to er hereby establishes a Money Purchase Plan and Trust to be known as City of San Luis Obispo CityAdmir�isrative Officer Money (the "Plan") in the form of the ICMA Retirement Corporation rototype Money Purchase Plan and Trust. This Plan is an amendment and restatement of an existing defined contribution money purchase plan. ❑ Yes No If yes, please specify the name of the defined contribution money purchase plan which this Plan hereby amends and restates: I. Employer: City of San Luis Obispo I1. Prototype Sponsor: Name: ICMA Retirement Corporation Address: 777 N. Capitol Street, N.E. Washington, D.C. 20002-4240 Telephone Number: (202) 962-4600 III. The Effective Date of the Plan shall be the first day of the Plan Year during which the Em to er adopts the Plan, unless an alternate Effective Date is hereby specified: April 3, 1997 IV. Plan Year will mean: The twelve (12) consecutive month period which coincides with the limita- tion year. (See Section 6.050) of the Plan.) ❑ The twelve (12) consecutive month period commencing on and each anniversary thereof. MPP Adoption Agreement 12/23/94 001-94 V. Normal Retirement Age shall be age 60 (not to exceed age 65). VI. ELIGIBILITY REQUIREMENTS: 1. The following group or groups 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 XX Other (specify below) City Administrative Officer The group specified must correspond to a group of the same designation that is defined in the statutes, ordinances, rules, regulations, personal manuals or other material in effect in the state or locality of the Employer. 2. 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 N/A (write N/A if an Employee is eligible to participate upon employment). If this waiver or reduction is elected, it shall apply to all Employees within the Covered Employment Classification. 3. A minimum 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 minimum age is declared.) VII. CONTRIBUTION PROVISIONS 1. The Employer shall contribute as follows (choose one, if applicable): Fixed Employer Contributions With Or Without Mandatory Participant Contributions. The Employer shall contribute on behalf of each Participant 3.5 % of Earnings or$_for the Plan Year (subject to the limitations of Article VI of the Plan). Each Participant is required to contribute 3.5 %of Earnings or$ for the Plan Year as a condition of participation in the Plan. (Write "0" if no contribution is required.) If Participant Contributions are required under this option, a Participant shall not have the right to discontinue or vary the rate of such contributions after becoming a Plan Participant. MPP Adoption Agreement 12/23/94Z111-120 p 001-9Z 0 r120 The Employer hereby elects to"pick up" the Mandatory/Required Participant Contribution. ❑ Yes ❑ No (Note to Employer: Neither an opinion letter issued by the Internal Revenue Service with respect to the Prototype Plan, nor a determination letter issued to an adopting Employer is 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 pur- poses. The Employer may seek such a ruling. Picked up contributions are excludable from the Participant's gross income under section 414(h)(2) of the Internal Revenue Code of 1986 only if they meet the requirements of Rev. Rul. 81-35, 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 Em- ployer 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.] 0 Fixed Employer Match of Participant Contributions. The Employer shall contribute on behalf of each Participant_% of Earn- ings for the Plan Year (subject to the limitations of Articles V and VI of the Plan) for each Plan Year that such Participant has contributed % of Earnings or$ . Under this option, there is a single, fixed rate of Em- ployer contributions, but a Participant may decline to make the required Participant contributions in any Plan Year, in which case no Employer contri- bution will be made on the Participant's behalf in that Plan Year. ❑ Variable Employer Match Of Participant Contributions. The Employer shall contribute on behalf of each Participant an amount de- termined as follows (subject to the limitations of Articles V and V1 of the Plan): of the Participant contributions made by the Participant for the Plan Year (not including Participant contributions exceeding % of Earnings or$ ); PLUS % of the contributions made by the Participant for the Plan Year in excess of those included in the above paragraph (but not includ- ing Participant contributions exceeding in the aggregate % of Earnings or$ ). Employer Contributions on behalf of a Participant for a Plan Year shall not exceed$ or % of Earnings, whichever is❑ more or 0 less. MPP Adoption Agreement 12/23/94 001-94 . ._... .,._:.. :.__:..:......:. .::. ..:. 0 �� 2. Each Participant may make voluntary (unmatched), after-tax contribution, subject to the limitations of Section 4.05 and Articles V and VI of the Plan. U Yes ❑ No 3. Employer contributions and Participant contributions shall be contributed to the Trust in accordance with the following payment schedule: bi-weekly coincident with payroll VIII. EARNINGS Earnings, as defined under Section 2.09 of the Plan, shall include: (a) Overtime ❑ Yes No (b) Bonuses ❑ Yes No IX. LIMITATION ON ALLOCATIONS If the Employer (i) maintains or ever maintained another qualified plan in which any Par- ticipant in this Plan is (or was) a participant or could possibly become a participant, and/or (ii) maintain$a welfare benefit fund (as defined in section 419(e) of the Code) or an indi- vidual medical account (as defined in section 415(1)(2) of the Code, under which amounts are treated as Annual Additions with respect to any Participant in this Plan) 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 6.03 and 6.04 of the Plan). 1. If the Participant is covered under another qualified defined contribution plan maintained by the Employer, other than a Regional Prototype Plan, the provisions of Section 6.02(a) through (f) of the Plan will apply as if the other plan were a Master Prototype Plan, unless another method has been indicated below. ❑ Other Method. (Provide the method under which the plans will limit total Annual Additions to the Maximum Permissible Amount, and will properly reduce any excess amounts, in a manner that precludes Employer discretion.) © MPP Adoption Agreement 12/23/94 001-94 2. If the Participant is or has ever been a participant in a defined benefit plan main- tained by the Employer, and if the limitation in Section 6.04 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 terms 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 6.01 through 6.03. The methods of avoiding the limitation described in this paragraph will not apply if the Employer indicates another method below. ❑ Other Method. (Note to Employer: Provide below language which will satisfy the 1.0 limitation of section 415(e) of the Code. Such language must preclude Employer discretion. See section 1.415-1 of the Regulations for guidance.) 3. The limitation year is the following 12-consecutive month period: same as elan year X. VESTING PROVISIONS The Employer hereby specifies the following vesting schedule, subject to (1) the minimum vesting requirements as noted and (2) the concurrence of the Plan Administrator. Years of Specified Minimum Service Percent Vesting Completed Vestine Requirements** Zero 0 % No minimum One 0 % No minimum Two 0 % No minimum Three 0 % Not less than 20% Four 0 % Not less than 40% Five 100 0�o Not less than 60% Six 100 % Not less than 80% Seven, or more 100 % Must equal 100% (**These minimum vesting requirements conform to the Code's three to seven year vesting schedule. If the employee becomes 100% vested by the completion of five years of service, there is no minimum for years three and four.) XI. Loans are permitted under the Plan, as provided in Article XIV: ❑ Yes No MPP Adoption Agreement 12/23/94 -/3 001-94 XII. 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. XIII. The Prototype Sponsor hereby agrees to inform the Employer of any amendments to the Plan made pursuant to Section 15.05 of the Plan or of the discontinuance or abandonment of the Plan. XIV. The Employer hereby appoints the Prototype Sponsor as the Plan Administrator pursuant to the terms and conditions of the lCMA RETIREMENT CORPORATION PROTOTYPE MONEY PURCHASE PLAN &TRUST. The Employer hereby agrees to the provisions of the Plan and Trust. XV. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption Agreement may result in disqualification of the Plan. XVI. An adopting Employer may not rely on a notification letter issued by the National or District Office of the Internal Revenue Service as evidence that the Plan is qualified under section 401 of the Internal 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. This Adoption Agreement may be used only in conjunction with basic Plan document number 001. In Witness Whereof, the Employer hereby causes this Agreement to be executed on this 15th day of April 1997 EMPLOYER Accepted: ICMA RETIREMENT CORPORATION By: By: Title: Personnel Director Title: Corporate Secretary Attest: Attest: MPP Adoption Agreement 12/23/94 001-94 ICMA RETIREMENT CORPORATION PROTOTYPE MONEY PURCHASE PLAN &TRUST ADOPTION AGREEMENT #001 Account Number 9681 The Employer hereby establishes a Money Purchase Plan and Trust to be known as City of San Luis Obispo City Attorney Money Purchase Plan (the "Plan") in the form of the ICMA Retirement Corporation Prototype Money Purchase Plan and Trust. This Plan is an amendment and restatement of an existing defined contribution money purchase plan. ❑ Yes 9 No If yes, please specify the name of the defined contribution money purchase plan which this Plan hereby amends and restates: I. Employer. City of San Luis Obispo II. Prototype Sponsor: Name: ICMA Retirement Corporation Address: 777 N. Capitol Street, N.E. Washington, D.C. 20002-4240 Telephone Number: (202) 962-4600 III. 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: April 3, 1997 IV. Plan Year will mean: The twelve (12) consecutive month period which coincides with the limits- tion year. (See Section 6.05(1) of the Plan.) ❑ The twelve (12) consecutive month period commencing on and each anniversary thereof. MPP Adoption Agreement 12/23/94 001-94 V. Normal Retirement Age shall be age 60 (not to exceed age 65). VI. ELIGIBILITY REQUIREMENTS: 1. The following group or groups 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 Other CCity Atto=heylow) The group specified must correspond to a group of the same designation that is defined in the statutes, ordinances, rules, regulations, personal manuals or other material in effect in the state or locality of the Employer. 2. 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 N/A (write N/A if an Employee is eligible to participate upon employment). If this waiver or reduction is elected, it shall apply to all Employees within the Covered Employment Classification. 3. A minimum age requirement is hereby specified for eligibility to participate. The minimum age requirement is NSA (not to exceed age 21. Write N/A if no minimum age is declared.) VII. CONTRIBUTION PROVISIONS 1. The Employer shall contribute as follows (choose one, if applicable): Fixed Employer Contributions With Or Without Mandatory Participant Contributions. The Employer shall contribute on behalf of each Participant 2.5 % of Earnings or$_for the Plan Year (subject to the limitations of Article VI of the Plan). Each Participant is required to contribute '•5 % of Earnings or$ for the Plan Year as a condition of participation in the Plan. (Write "0" if no contribution is required.) if Participant Contributions are required under this option, a Participant shall not have the right to discontinue or vary the rate of such contributions after becoming a Plan Participant. C. O l'W1 © MPP Adoption Agreement 12/23/94 001-94 The Employer hereby elects to "pick up" the Mandatory/Required Participant Contribution. U Yes ❑ No [Note to Employer: Neither an opinion letter issued by the Internal Revenue Service with respect to the Prototype Plan, nor a determination letter issued to an adopting Employer is 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 pur- poses. The Employer may seek such a ruling. Picked up contributions are excludable from the Participant's gross income under section 414(h)(2) of the Internal Revenue Code of 1986 only if they meet the requirements of Rev. Rul. 81-35, 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 Em- ployer 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 2_5% of Earn- ings for the Plan Year (subject to the limitations of Articles V and VI of the Plan) for each Plan Year that such Participant has contributed % of Earnings or$ . Under this option, there is a single, fixed rate of Em- ployer contributions, but a Participant may decline to make the required Participant contributions in any Plan Year, in which case no Employer contri- bution will be made on the Participant's behalf in that Plan Year. ❑ Variable Employer Match Of Participant Contributions. The Employer shall contribute on behalf of each Participant an amount de- termined as follows (subject to the limitations of Articles V and VI of the Plan): % of the Participant contributions made by the Participant for the Plan Year (not including Participant contributions exceeding % of Earnings or$ ); PLUS % of the contributions made by the Participant for the Plan Year in excess of those included in the above paragraph (but not includ- ing Participant contributions exceeding in the aggregate % of Earnings or$ ). Employer Contributions on behalf of a Participant for a Plan Year shall not exceed $ or % of Earnings, whichever is❑ more or ❑ less. MPP Adoption Agreement 12/23/94 /!�'��•' 001-94 (� 2. Each Participant may make voluntary (unmatched), after-tax contribution, subject to the limitations of Section 4.05 and Articles V and VI of the Plan. U Yes ❑ No 3. Employer contributions and Participant contributions shall be contributed to the Trust in accordance with the following a ment schedule: bi-weekly coincident with pay o�l VIII. EARNINGS Earnings, as defined under Section 2.09 of the Plan, shall include: (a) Overtime ❑ Yes No (b) Bonuses ❑ Yes No IX. LIMITATION ON ALLOCATIONS If the Employer (i) maintains or ever maintained another qualified plan in which any Par- ticipant in this Plan is (or was) a participant or could possibly become a participant, and/or (ii) maintains a welfare benefit fund (as defined in section 419(e) of the Code) or an indi- vidual medical account (as defined in section 415(1)(2) of the Code, under which amounts are treated as Annual Additions with respect to any Participant in this Plan) 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 6.03 and 6.04 of the Plan). 1. If the Participant is covered under another qualified defined contribution plan maintained by the Employer, other than a Regional Prototype Plan, the provisions of Section 6.02(a) through (f) of the Plan will apply as if the other plan were a Master Prototype Plan, unless another method has been indicated below. ❑ Other Method. (Provide the method under which the plans will limit total Annual Additions to the Maximum Permissible Amount, and will properly reduce any excess amounts, in a manner that precludes Employer discretion.) © MPP Adoption Agreement 12/23/94 001-94 2. If the Participant is or has ever been a participant in a defined benefit plan main- tained by the Employer, and if the limitation in Section 6.04 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 terms 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 6.01 through 6.03. The methods of avoiding the limitation described in this paragraph will not apply if the Employer indicates another method below. ❑ Other Method. (Note to Employer: Provide below language which will satisfy the 1.0 limitation of section 415(e) of the Code. Such language must preclude Employer discretion. See section 1.415.1 of the Regulations for guidance.) 3. The limitation year is the following 12-consecutive month period: X. VESTING PROVISIONS The Employer hereby specifies the following vesting schedule, subject to (1) the minimum vesting requirements as noted and (2) the concurrence of the Plan Administrator. Years of Specified Minimum Service Percent Vesting Completed Vestine Requirements" Zero 0 % No minimum One 0 % No minimum Two 0 % No minimum Three 0 % Not less than 20% Four —�% Not less than 40% Five 100 % Not less than 60% Six 100 % Not less than 80% Seven, or more 100 % Must equal 100% ("These minimum vesting requirements conform to the Code's three to seven year vesting schedule. If the employee becomes 100% vested by the completion of five years of service, there is no minimum for years three and four.) XI. Loans are permitted under the Plan, as provided in Article XIV: ❑ Yes b No MPP Adoption Agreement 12/23/94 001-94 XII. 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. XIII. The Prototype Sponsor hereby agrees to inform the Employer of any amendments to the Plan made pursuant to Section 15.05 of the Plan or of the discontinuance or abandonment of the Plan. XIV. The Employer hereby appoints the Prototype Sponsor as the Plan Administrator pursuant to the terms and conditions of the ICMA RETIREMENT CORPORATION PROTOTYPE MONEY PURCHASE PLAN &TRUST. The Employer hereby agrees to the provisions of the Plan and Trust. XV. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption Agreement may result in disqualification of the Plan. XVI. An adopting Employer may not rely on a notification letter issued by the National or District Office of the Internal Revenue Service as evidence that the Plan is qualified under section 401 of the Internal 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. This Adoption Agreement may be used only in conjunction with basic Plan document number 001. In Witness Whereofthe Employer hereby causes this Agreement t be executed on , this 15th day of April , 19$7 EMPLOYER Accepted: ICMA RETIREMENT CORPORATION By: By: Title: Personnel Director Title: Corporate Secretary Attest Attest: ev��v MPP Adoption Agreement 12/23/94 001-94 DECLARATION OF TRUST OF ICMA RETIREMENT TRUST ARTICLE I.NAME AND DEFINITIONS (o) Retirement Trust. The Trust created by this Section 1.1 Name:The Name of the Trust created hereby is the Declaration of Trust. ICMA Retirement Trust. (p) Trust Property.The amounts held in the Retirement Section 1.2 Definitions:Wherever they are used herein,the Trusion behalf of the Public Employers in connection following terms shall have the following respective with Deferred Compensation Plans and on behalf of meanings: the Public Employer Trustees for the exclusive benefit (a)By-laws.The By-laws referred to in Section 4.1 hereof, of Employees pursuant to Qualified Plans. The Trust as amended from time to time. Property shall include any income resulting from the (b) Deferred Compensation Plan. A deferred investment to the amounts so held. compensation plan established and maintained by a (q)Trustees. The Public Employee Trustees and ICMA/ Public Employer for the purpose ofproviding retirement RC Trustees elected by the Public Employers to serve income and other deferred benefits to its employees in as members of the Board of Trustees of the Retirement accordance with the provision of section 457 of the Trust. Internal Revenue(ode of 1986,as amended. ARTICLE II.CREATION AND PURPOSE OF THE TRUST; (c) Employees. Those employees who participate in OWNERSHIP OF TRUST PROPERTY Qualified Plans. Section 2.1 Creation: The Retirement Trust was created by the (d) Employer Trust. A trust created pursuant to an execution of this Declaration of Trust by the initial Trust- agreement between RC and a Public Employer,or an ees and Public Employers and is established with respect to agreement between RC and a Public Employer for each participating Public Employer by adoption of this administrative services that is not a trust,in either case Declaration of Trust. for the purpose of investing and administering the Section 2.2 Purpose: The purpose of the Retirement Trust is to funds set aside by such Employer in connection with its provide for the commingled investment of funds held by Deferred Compensation agreements with its employees the Public Employers in connection with their Deferred or in connection with its Qualified Plan. Compensation and Qualified Plans. The Trust Property (e) Investment Contract. A non-negotiable contract shall be invested in the Portfolios, in Investment Con- entered into by the Retirement Trust with a financial tracts, and in other investments recommended by the institution that provides for a fixed rate of return on Investment Adviser under the supervision of the Board of investment. Trustees. No part of the Trust Property will be invested in (f) ICMA. The International City/County Management securities issued by Public Employers. Association. Section 23 Ownershipof Trust Property: The Trustees shall (g) ICMA/RC Trustees. Those Trustees elected by the have leggaal title to the Trust Property. The Public Empploy- Public Employers who, in accordance with the ersshallbethe beneficial owners ofthe portion ofthe elost Provisions of Section 3.1(a)hereof,are also members Property allocable to the Deferred Compensation Plans. of the hoard of Directors of ICMA or RC(or in the case The Portion of the Trust Propettq allocable to the Quali- of RC,former members of the RC Board). fied Plans shall be held for the Public Employer Trustees for (h) Investment Adviser. The Investment Adviser that the exclusive benefit of the Employees. enters into a contract with the Retirement Trust to ARTICLE III. TRUSTEES provide advice with respect to investment of the Trust Section 3.1 Number and Qualification of Trustees: (a) The Property. Board of Trustees shall consist of nine Trustees.five of the (i) Portfolios. The separate commingled accounts of Trustees shall be full-time employees of a Public Employer investment established by the Investment Adviser to (the Public Employee Trustees)whoare authorized bysuch the Retirement Trust, under the supervision of the Public Employer to serve as Trustee. The remaining four Trustees,for the purpose of providing investments for Trustees shall consist of two persons who,at the time of the Trust Property. election to the Board of Trustees,are members of the Board (j) Public Employee Trustees. Those Trustees elected by of Directors of ICMA and two persons who,at the time of the Public Employers who, in accordance with the election,are members or former members of the Board of Provision of Section 3.1(a) hereof, are full-time Directors of RC (the ICMA/RC Trustees). One of the employees of Public Employers. Trustees who is a director of ICMA,and one of the Trustees (k)Public Employer Trustees. Public Employers who who is a director of RC,shall,at the time of election, be serve as trustees r the Qualified Plans. full-time employees of Public Employers. (b) No person may serve as a Trustee for more than two terms in any ten- (1) Public Employer.A unit of state or local government, year period. or any agency or instrumentality thereof, that has Section 3.2 Election and Term: (a) Except for the Trustees adopted a Deferred Compensation Plan or a Qualified appointed to fill vacancies pursuant to Section 3.5 hereof, Plan and has executed this Declaration of Trust. the Trustees shall be elected by a vote of a majority of the (m)Qualified Plan.A plan sponsored by a Public Employer voting Public Em loyers in accordance with the proce- for the purpose of providing retirement income to its dures set forth in the By-Laws.(b) At the first election of employees which satisfies the qualification requirements Trustees,three Trustees shall be elected fora term of three of Section 401 of the Internal Revenue Code, as years,three Trustees shall be elected for a term of two years amended. and three Trustees shall be elected for a term of one year. (o) RC.The International City Management Association Ateachsubsequentelection,three Trustees shall beelected, Retirement Corporation, each to serve for a term of three years and until his or her amended January 1995 successor is elected and qualified. ���/ Section 3.3 Nominations: The Trustees who are full-time the Investment Contracts and in any other investment employees of Public Employers shall serve as the Nominat- recommended by the Investment Adviser, but not ing Committee for the Public Employee Trustees. The including securities issued by Public Employers, Nominating Committee shall choose candidates for Public provided that if a Public Employer has directed that its Employee Trustee in accordance with the procedures set monies be invested in one or more specified Portfolios forth in the By-Laws. or in an Investment Contract, the Trustees of the Section 3.4 Resignation and Removal: (a) Any Trustee may Retirement Trust shall invest such monies in resign as Trustee (without need for prior or subsequent accordance with such directions; accounting) by an instrument in writing signed by the (e) keepsuchportionoftheTrustProperty incashorcash Trustee and delivered to the other Trustees and such balancesas theTrustees,from time to time,may deem resignation shall be effective upon such delivery, or at a to be in the best interest of the Retirement Trust later date according to the terms of the instrument. Any of created hereby without liability for interest thereon; the Trustees may be removed for cause, by a vote of a majority of the Public Employers. (b) Each Public Em- (f) accept and retain for such time as they may deem advisable any securities or other property received or ployee Trustee shall resign his or her position as Trustee within sixty days of the date on which he or she ceases to acquired by them as Trustees hereunder,whether or not such securities or other property would normally be a full-time employee of a Public Employer. Section 3.5 Vacancies: The term of office of a Trustee shall be purchased as investment or oche hereunder; terminate and a vacancy shall occur in the event his or her (g) cause any securities or other property held m part of death,resignation,removal,adjudicated incompetence or the Trust Property to be registered in the name of the Retirement Trust or in the name other incapacity to perform the duties of the office of a hold any investments in bearer form, a nominee,and to Trustee. In the case of a vacancy,the remaining Trustees rm,but the books shall appoint such person as they in their discretion shall and records s me is are es art at all times show that see fit(subject to the limitations set forth in this Section), all such investments are a part of the Trust Property; to serve for the unexpired portion of the term of the Trustee (h) make,execute,acknowledge,and deliver any and all who has resigned or otherwise ceased to be a Trustee. The documents of transfer and conveyance and any and all appointment shall be made by a written instrument signed other instruments that maybe necessaryor appropriate by a majority of the Trustees. The person appointed must to carry out the powers herein granted; be the same type of Trustee(i.e.,Public Employee Trustee (i) vote upon any stock,bonds,or other securities;give or ICMA/RC Trustee)as the person who has ceased to be general or special proxies or powers of attorney with a Trustee. An appointment of a Trustee may be made in or without power of substitution; exercise any anticipation of a vacancy to occur at a later date by reason conversion privileges, subscription rights, or other of retirement or resignation,provided that such appoint- options,and make any payments incidental thereto; merit shall not become effective prior tosuchretirement or oppose, or consent to, or otherwise participate in, resignation. Whenever a vacancy shall occur,until such corporate reorganizationsortoother changes affecting vacancy is filled asrovided in this Section 3.5,the Trust. corporate securities,and delegate discretionary powers ecs in office,regardless of their number,shall have all the and pay any assessments or charges in connection powers granted to the Trustees and shall discharge all the therewith;and generally exercise any of the powers of duties imposed upon the Trustees by this Declaration. A an owner with respect to stocks,bonds,securities or written instrument certifying the existence of a vacancy other property held as part of the Trust Property; signed by a majority of the Trustees shall be conclusive (j) enter into contracts or arrangements for goods or evidence of the existence of such vacancy. services required in connection with the operation of Section 3.6 Trustees Serve in Representative Capacity: By the Retirement Trust, including,but not limited to, executing this Declaration, each Public Employer agrees contracts with custodians and contracts for the that the Public Employee Trustees elected by the Public provision of administrative services; Employers are authorized to act as agents and representa. (k) borrow or raise money for the purposes of the tives of the Public Employers collectively. Retirement Trust in such amount, and upon such ARTICLE IV.POWERS OF TRUSTEES terms and conditions, as the Trustees shall deem Section 4.1 General Powers: The Trustees shall have the power advisable,provided that the aggregate amount of such borrowings shall not exceed to conduct the business of the Trust and to carry on its Trust Proen n the value of the operations. Such power shall include, but shall not be Trustees sF,Trust No person llending money to the limited to,the power to: all be bound to see the application of the money lent or to inquire into its validity,expediency (a) receive the Trust Property from the Public Employers, or propriety or any such borrowing; Public EmployerTrusteesor the trustee or administrator (p incur reasonable expensesas required for theoperation under any Employer Trust; of the Retirement Trust and deduct such expenses (b) enter into a contract with an Investment Adviser from of the Trust Property; providing,among other things,for the establishment (m) pay expenses properly allocable to the Trust Property and operation of the Portfolios, selection of the incurred inconnectionwith the Deferred Com ensation .Investment Contracts in which the Trust Property may Plans, Qualified Plans, or the Employer Trusts and be invested,selection of the other investments for the deduct such expenses from that portion of the Trust Trust Property and the payment of reasonable fees to Property to which such expenses are properly allocable; the Investment Adviser and to any sub-investment adviser retained by the Investment Adviser; (n) pay out of the Trust Property all real and personal (c) review annually the performance of the Investment properry�taxes, income taxes and other taxes of any Adviser and approve annually the contract with such and all kinds which,in the opinion of the Trustees, Investment Adviser; are properly levied, or assessed under existing or future laws upon,or in respect of,the Trust Property (d)invest and reinvest the Trust Property in the Portfolios, and allocate any such taxes to the appropriate accounts; ® amended January 19955 �0 (o) adopt, amend and repeal the Bylaws, provided that like capacity and familiar with such matters would use in such By-laws are at all times consistent with the terms the conduct of an enterprise of a like character and with of this Declaration of Trust; (p) employ persons to make available interests in the like aims. Retirement Trust to employers eligible to maintain a Section 5.2 Liability: The Trustees shall not be liable for any Deferred Compensation Plan under Section 457 or a mistake of judgment or other action taken n i i good faith, Qualified Plan under Section 401 of the Internal uponandfthe oksaction taccountken or r other records tgood he Retire. Revenue Code,as amended; upon the books of account or other records of the Retire- ment Trust,upon the opinion of counsel,or upon reports (q) issue the Annual Report of the Retirement Trust,and made to the Retirement Trust by any of its officers,employ- the disclosure documents and other literature used by ees or agents or by the Investment Adviser or any sub- the Retirement Trust; investment adviser,accountant,appppraiser or,other expert (r) in addition to conductin the investment program or consultant selected with reasonablecare bythe Trustees, authorized in Section 4.1f1d), make loans, including officers or employyees of the Retirement Trust The Trust- the purchase of debt obligations,provided that all such ees shall also not be liable for any loss sustained by the Trust loans shall bear interest at the current market rate; Property by reason of any investment made in good faith (s) contractfor,and delegate any Powers granted hereunder and in accordance with the standard of care set forth in to, such officers, agents, employees, auditors and to, 5.1. attorneys as the Trustees may select,provided that the Section 5.3 Bond: No Trustee shall be obligated to give any Trustees may not delegate the powers set forth in bond or other security for the performance of any of his or paragraphs(b),(c)and(o)of this Section 4.1 and may her duties hereunder. not eleuciarygate dutiespowe; if such delegation would violate ARTICLE VI.ANNUAL REPORT TO SHAREHOLDERS their fiduciary duties; (t) provide for the indemnification of the Officers and The Trustees shall annually submit to the Public Employers and Trusteesof the Retirement Trust and purchase fiduciaryPublic Employer Trustees a written report of the transactions of the insurance; p Retirement Trust, includingg financial statements which shall be (u) maintain books and records,including separrateaccounts certified by independent pub licaccountants chosen bythe Trustees. for each Public Empl ,Public Employer Trustee or ARTICLE VII.DURATION OR AMENDMENT OF Employer Trust and sucoyerh additional separate accounts RETIREMENT TRUST asare required under,and consistent with,the Deferred Section 7.1 Withdrawal:A Public Employer or Public Employer Compensation or Qualified Plan of each Public Employer,and Trustee may,at any time,withdraw from this Retirement (v) do all such acts,take all such proceedings,and exercise Trust by delivering to the Board of Trustees a written all such rights and privileges,although not and exercise statement of withdrawal. In such statement, the Public mentioned herein,as the Trustees may deem specifically that Employer or Public Employer Trustee shall acknowledge loyer is or appropriate to administer the Trust Property and o derived efrom comust pensaation deferred by employees rty allocable to the Public of such carry out the purposes of the Retirement Trust. Public Employer pursuant to its Deferred Comnation Section 4.2 Distribution of Trust Property:Distributions of the m Plan or From contribution to the accounts of Employees Trust property shall be made to,or on behalf of,the Public ursuant to a Employer or Public Employer Trustee,in accordance with p Qualified Plan, and sail designate the the terms of the Deferred Com financial institution to which such property shall r trans- Plan or Employer Trusts. The Trustees of the Retirement trusteferrede by the Trustees of the Retirement Trust Trust. by the Trust shall be fully protected in making payments inaccor- Section 7C2 Duration: strThe Retirement Tator under an rust s aoyer continue dance with the direction of the Public Employers,Public until terminated by the vote of a majority of the Public Employer Trustees or trustees or administrators of any Employers,each casting one vote. Upon termination,all of Employer Trust without ascertaining whether such pay the Trust Property salt be paid out to the Public Employ- ments are in compliance with the provision of thea li- cable Deferred Compensation or Qualified Plan or Em- ers,PPublic Employer Trustees orthe trustees oradministra- ployer Trust. tors of the Employer Trusts,as appropriate. Section 4.3 Execution of Instruments: The Trustees ma Section 7.3 Amendment-The Retirement Trust maybe amended unanimously designate any one or more of the Trustees to ca the vote of a majority of the Public Employers, each execute any instrument or document on behalf of all, casting one vote. g or endorsement of Section 7.4 Procedure:A resolution to terminate or amend the including but not limited to the signin any check and the signing of any application, insurance Retirement Trust or to remove a Trustee shall be submitted and other contracts, and the action of such designated to a vote of the Public Employers if: (i)a majority of the Trustee or Trustees shall have the same force and effect as Trustees so direct, or, (ii) a petitionrequesting a vote if taken by all the Trustees. signed by not less that 25 percent of the Public Employers, ARTICLE V. DUTY OF CARE AND LIABILITY OF is submitted to the Trustees. TRUSTEES ARTICLE VIII. MISCELLANEOUS Section 5.1 Duty of Care:In exercising the powers hereinbefore Section 8.1 Governing Law: Except as otherwise required by granted to the Trustees,the Trustees shall perform all acts state or local law,this Declaration of Trust and the Retire- within their authority for the exclusive purpose of provid- ment Tnut hereby created shall be construed and regulated ing benefits for the Public Employers in connection with by the laws of the District of Columbia. Deferred Compensation Plan and Public Employer Trust- Section 8.2 Counterparts:This Declaration may be executed by eesshthe care,skill,prudence and ursuant to Qualified Plans,and shall perform such acts the Public Empts,each loyers ands 11 Trustees in two or more counter- stances then prevailing that a prudent person ence in tactng n a whe circum- hichogethersallconsttuteo eandthee deemed an sa mal but all of same instrument. amended January 1995