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91-18 DEFERRED COMPENSATION PLAN RESOLUTION NO. 91-18 SUGGESTED RESOLUTION FOR A LEGISLATIVE BODY RELATING TO A DEFERRED COMPENSATION PLAN Name of Employer: C T T Y 0 F Title of Program Coordinator: C I T Y of Program Coordinator) WINSLOW ADMINISTRATOR State: Washi ngton (see definition below for duties Resolution of the above named Employer ("Employer") WHEREAS, the Employer has employees rendering valuable services; and WHEREAS, the establishment of a deferred compensation plan for such employees serves the interests of the Employer by enabling it to provide reasonable retirement security for its employees, by providing increased flexibility in its personnel management system, and by assisting in the attraction and retention of competent personnel; and WHEREAS, the Em Ioyer has determined that the establishment of a deferred compensation plan to be administered by the I~MA Retirement Corporation serves the above objectives; and WHEREAS, the Emplo er desires that its deferred compensation plan be administered by the ICMA Retirement Corporation, an~j~hat 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 F~E ;T RESOLVED that the Employer hsraby adopts ~,r has previously adcptcd the deferred compensation plan (the "Plan") in the form of: (Select one) The ICMA Retirement Corporation Deferred Compensation Plan, referred to as Appendix A [] The plan provided by the Employer (executed copy attached hereto). BE IT FURTHER RESOLVED that the Employer hereby executes the Declaration of Trust of the ICMA Retirement Trust, referred to as Appendix B; and BE IT FURTHER RESOLVED that the C I TY ADM I N I STRATOR (use title of official, not name) shall be the coordinator for this program; shall receive necessary reports, notices, etc. from the ICMA Retirement Corporation or the ICMA Retirement Trust; shall cast, on behalf of the Employer, any required votes under the ICMA Retirement Trust; Administrative duties to carry out the plan may be assigned to the appropriate departments, and is authorized to execute all necessary agreements with ICMA Retirement Corporation incidental to the administration of the Plan. !. SUSAN P. KASPER P.I.H, nf the (C!ty, County, efc ~ of City of Wi nsl ow ', do hereb certi~lthat the foregoing resolution, propesed by, in the (Council Member, Board, etc.) of ovember ~, 19 was duly passed and adoptedN in the (Council, Board, etc.) of the (City, County, etc. of Wi nsl ow at regular meeting thereof assembled this 7th day of ~ovember ,19 91 , by the following vote: AYES: Unanimous NAYS: ABSENT: (Sea~ RESOLUTION NO. 91-18 A RESOLUTION of the City of Winslow, Washington, establishing an Enployer's Deferred Conpensation Plan to provide retirement income and other deferred benefits to the Employees of the City of Winslow. ARTICLE I. INTRODUCTION The Employer hereby establishes the Employer's Deferred Compensation Plan, hereinafter referred to as the "Plan." The Plan consists of the provisions set forth in this document. The primary purpose of this Plan is to provide retirement income and other deferred benefits to the Employees of the Employer in accordance with the provisions of Section 457 of the Internal Revenue Code of 1986, as amended (the "Code"). 'This Plan shall be an agreement solely between the Employer and participating Employees. ARTICLE II. DEFINITIONS Section 2.01 Account: The bookkeeping account maintained for each Participant reflecting the cu- mulative amount of the Participant's Deferred Com- pensation, including any income, gains, losses, or increases or decreases in market value attributable to the Employer's investment of the Participant's Deferred Compensation, and further reflecting any distributions to the Participant or the Participant's Beneficiary and any fees or expenses charged against such Participant's Deferred Compensation. Section 2.02 Administrator: The person or persons named to carry out certain nondiscretionary ad- ministrative functions under the Plan, as hereinafter described. The Employer may remove any person as Administrator upon 60 days' advance notice in writing to such person, in which case the Employer shall name another person or persons to act as Administrator. The Administrator may resign upon 60 days' advance notice in writing to the Employer, in which case the Employer shall name another person or persons to act as Administrator. Section 2,03 Beneficiary: The person'or persons desig- nated by the Participant in his Jointier Agreement who shall receive any benefits payable hereunder in the event of the Participant's death. In the event that the Participant names two or .more Beneficiaries, each Beneficiary shall be entiffigd to equal shares of the benefits payable at the 'articipant's death, un- less otherwise provided in t~ Participant's Joinder Agreement. ff no benefi.C{ary is designated in the Joinder Agreement, if ,the Designated Beneficiary predeceases the Part4'cipant, or if the designated Beneficiary does not' survive the Padicipant for a period of fifteen (!5) days, then the estate of the Participant shall be the Beneficiary. Section 2.04 Deferred Compensation: The amount of Normal Compensation otherwise payable to the Participant Which the Padicipant and the Employer mutually agree to defer hereunder, any amount credited:f~ a Participant's Account by reason of a transfer" under section 6.03, or any other amount whichthe Employer agrees to credit to a Participant's Accdunt Section" 2.05 Employee: Any individual who provides services for the Employer, whether as an employee of the Employer or as an independent contractor, and who has been designated by the Employer as eligible to participate in th..e~Plan. Section 2.06 includlble Compensation: The amount of an Employee's compe~Ksation from the Employer for a taxable year that i§ attributable to services per- formed for the Empr;ayer and that is includible in the Employee's gross income for the taxable year for federal income tax purposes; such term does not include any amount excludable from gross income under this Plan or any other plan described in Section 457(b) of the Code or any other amount excluda.ble from gross income for federal income tax purposes. Includible Compensation shall be deter- mined'without regard to any community property law.s. Section' 2.07 Jolnder Agreement: An agreement en- tBred into between an Employee and the Employer, · .' including any amendments or modifications thereof. Such agreement shall fix the amount of Deferred Compensation, specify a preference among the investment alternatives designated by the Employer, designate the Employee's Beneficiary or Beneficia- ries, and incorporate the terms, conditions, and provisions of the Plan by reference. Section 2.08 Normal Compensation: The amount of compensation which would be payable to a Partici- pant by the Employer for a taxable year if no Joinder Agreement were in effect to defer compensation under this Plan. Section 2.09 Normal Retirement Age: Age 70-1/2, un- less the Padidpant has elected an alternate Normal Retirement Age by written instrument delivered to the Administrator prior to Separation from Service. A Participant's Normal Retirement Age determines the period during which a Participant may utilize the catch-up limitation of Section 5.02 hereunder. Once a Participant has to any extent utilized the catch-up limitation of Section 5.02, his Normal Retirement age may not be changed. A Participant's alternate Normal Retirement Age may not be earlier than the earliest date that the Participant will become eligible to retire and receive unreduced retirement benefits underthe Employer's basic retirement plan covering the Participant and may not be later than the date the Participant will attain age 70-1/2. If a Participant continues employ- ment after attaining age 70-1/2, not having previ- ously elected an alternate Normal Retirement Age, the Participant's alternate Normal Retirement Age shall not be laterthan the mandatory retirement age, if any, established by the Employer, or the age at which the Participant actually separates from ser- vice if the Employer has no mandatory retirement age. tf the Padicipant will not become eligible to receive benefits under a basic retirement plan maintained by the Employer, the Participant's alter- nate Normal Retirement Age may not be earlier than age 55 and may not be later than age 70-1/2. Section 2.10 Participant: Any Employee who has joined the Plan pursuant to the requirements of Article IV. 39 Section 2.11 Plan Year: The calendar year. Section 2.12 Retlrement: The first date upon which both of the following shall have occurred with respect to a participant: Separation from Service and attain- ment of age 65. Section 2.13 Separation from Service: Severance of the Participant's employment with the Employer which constitutes a "separation from service" within the meaning of Section 402(e)(4)(A)(iii) of the Code. In general, a Participant shall be deemed to have severed his employment with the Employer for pur- poses of this Plan when, in accordance with the established practices of the Employer, the employ- ment relationship is considered to have actually terminated. In the case of a Participant who is an independent contractor of the Employer, Separation from Service shall be deemed to have occurred when the Participant's contract under which ser- vices are performed has completely expired and terminated, there is no foreseeable possibility that the Employer will renew the contract or enter into a new contract for the Participant's services, and it is not anticipated that the Participant will become an Employee of the Employer. ARTICLE III. ADMINISTRATION Sectlon 3.01 Duties of Employer: The Employer shall have the authorityto make all discretionary decisions affecting the rights or benefits of Participants which may be required in the administration of this Plan. Section 3.02 Duties of Administrator: The Adminis- trator, as agent for the Employer, shall perform nondiscretionary administrative functions in con- nection with the Plan, including the maintenance of Participants' Accounts, the provision of periodic reports of the status of each Account, and the disbursement of benefits on behalf of the Employer in accordance with the provisions of this Plan. ARTICLE IV. PARTICIPATION IN THE PLAN Section 4.01 Initial Participation: An Employee may become a Participant by entering into a Joinder Agreement prior to the beginning of the calendar month in which the Joinder Agreement is to become effective to defer compensation not yet earned. Section 4.02 Amendment of Jointier Agreement: A Participant may amend an executed Joinder Agreement to change the amount of compensation not yet earned which is to be deferred (including the reduction of such future deferrals to zero) or to change his investment preference (subject to such restrictions as may result from the nature or terms of any investment made by the Employer). Such amendment shall become effective as of the begin- ning of the calendar month commencing after the date the amendment is executed. A Participant may at any time amend hisJoinderAgreementto change the designated Beneficiary, and such amendment shall become effective immediately. ARTICLE V. LIMITATIONS ON DEFERRALS Section 5.01 Normal Limitation: Except as provided in section 5.02, the maximum amount of Deferred Compensation for any Participant for any taxable year shall not exceed the lesser of $7.500.00 or 33- 1/3 percent of the Padicipant's Includible Compen- sation for the taxable year. This limitation will ordi- narily be equivalent to the lesser of $7,500.00 or 25 percent of the Participant's Normal Compensation. Page 40 Section 5.02 Catch-Up LImitation: For each of the last three (3) taxable years of a Participant ending be- fore his attainment of Normal Retirement Age. the maximum amount of Deferred Compensation shall be the lesser of: (1) $15,000 or (2) the sum of (i) the Normal Limitation for the taxable year, and (ii) the Normal Limitation for each prior taxable year of the Participant commencing after 1978 less the amount of the Participant's Deferred Compensation for such prior taxable years. A prior taxable year shall be taken into account under the preceding sentence only if (i) the Participant was eligible to participate in the Plan for such year (or in any other eligible deferred compensation plan established under Section 457 of the Code which is properly taken into acz:ount pursuant to regulations under section 457), and (ii) compensation (if any) deferred under the Plan (or such other plan) was subject to the deferral limitations set forth in Section 5.01. Section 5.03 Other Plans: The amount excludable from a Participant's gross income under this Plan or any other eligible deferred compensation plan under section 457 of the Code shall not exceed $7,500.00 (or such greater amount allowed under Section 5.02 of the Plan), less any amount excluded from gross income under section 403(b), 402(a)(8), or 402 (h)(1)(B) of the Code, or any amount with respect to which a deduction is allowable by reason of a contribution to an organization described in section 501 (c)(18) of the Code. ARTICLE Vi. INVESTMENTS AND ACCOUNT VALUES Section 6.01 Investment of Deferred Compensation: All investments of Participant's Deferred Compen- sation made by the Employer, including all property and rights purchased with such amounts and all income attributable thereto, shall be the sole prop- erty of the Employer and shall not be held in trust for Participants or as collateral security for the fulfillment of the Employer's obligations under the Plan. Such property shall be subject to the claims of general creditors of the Employer, and no Participant or Beneficiary shall have anyvested interestorsecured or preferred position with respect to such property or have any claim against the Employer except as a general creditor. Section 6.02 Crediting of Accounts: The Participant's Account shall reflect the amount and value of the investments or other property obtained by the Em- ployer through the investment of the Participant's Deferred Compensation. It is anticipated that the Employer's investments with respect to a Partici- pant will conform to the investment preference specified in the Participant's Joinder Agreement, but nothing herein shall be censtruBd to require the Employer to make any particular investment of a Participant's Deferred Compensation. Each Partici- pant shall receive periodic reports, not less frequently than annually, showing the then-current value of his Account. Section 6.03 Transfers: (a) Incoming Transfers: A transfer may be accepted from an eligible deferred compensation plan maintained by another employer and credited to a Participant's Account under the Plan if (i) the Participant has separated from service with that employer and become an Employee of the Employer, and (ii) the other employer's plan pro- vides that such transfer will be made. The Employer may require such documentation from the prede- cessor plan as it deems necessary to effectuate the July 12,1991 Mr. Lynn Nordby City Administrator City of Winslow 625 Winslow Way East Winslow, WA 98110 Re: Section 457 Deferred Compensation Plan ICMA RETIREMENT CORPORATION Corporate Headquarters Suite 600 777 North Capitol Street, r,lE Washington. DC 20002-4240 (202) 962-4600 Toll Free (800) 669-7400 Dear Mr. Nordby: Thank you for your interest in the ICMA Retirement Corporation program. Your Marketing Representative, Mr. Jerry Wagner, has relayed to me your request for plan adoption materials. I have enclosed everything you need to begin implementing your new Deferred Compensation plan: · Step-by-step instructions · Brochures and program information · Plan adoption documents and postage-paid return envelope The annual account maintenance fee of $25 per participant will be deducted from account balances, prorated quarte~y. This offer of pricing and services will be held open for your acceptance for ninety days from today. If you will require more time to consider this offer, please notify me in writing before Thursday, October 10, 1991. After reviewing the enclosed materials, feel free to call Mr. Wagner at (503) 626-7351 with any questions that you have at that point. Then, to help you implement your new plan without complication, please contact Mr. Chris Baker, New Accounts Services Specialist, at 1-(800) ~69-7400. . dcerely, ,, cc: Ms. Harriet Jacobs Director of Marketing Mr. Jerry Wagner Marketing Manager ICMA-RC Services, Inc. .MeTher i',JASD ar,d SIPC ~ ~a ',,',,holi'y owaed bF_ ,~er Jea~ er sdbsidiary of the ICMA Retiremerit Corpcrat~or.