HomeMy WebLinkAboutGlendale Federal Savings & Loan Association; 1979-10-02;1 . B a I) * .\
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DEFERRED COMPENSATION INVESTMENT AGREEMENT
GLENDALE FEDEmL SAVINGS & LOAN ASSOCIATION
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DEFERRED COMPENSATION INVESTMENT AGREEMENT
(employer ' City of Carlsbad
has established the City of Carlsbad Deferred Compensation Plan
("Plan"), a copy of which is attached hereto as Exhibit "A" and h;
designated
("Administrator") to administer the Plan and this Agreement on be-
half of the Employer.
--I_ I_---- , The
--.
the City Manager Of the city of Carlsbad .-
Glendale Federal Savings and Loan Association ("Glendale
Federal") is a Federal Savings and Loan Association, a corporatioi
duly organized and existing under the laws of the United States, i
is authorized by California law for the investment by local public
agencies of deferred compensation funds,
The Agreement sets forth the manner by which Plan funds wil:
invested with Glendale Federal, and Glendale Federal in accordanct
with the applicable Laws and Regulations, will accept such funds ;
investment and will account for such funds on a regular basis.
1. Glendale Federal agrees to accept for investment the fi
sent to Glendale Federal in accordance with the Plan, and to estal
lish and maintain savings accounts in accordance with the instruc.
of the Administrator and the provisions of this Agreement.
earnings on such accounts will be credited to such accounts in acc
ance with prevailing practice at Glendale Federal, unless otherwi:
instructed by the Administrator.
All
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2. Glendale Federal shall establish, from time to time, sa
accounts at a branch or branches of Glendale Federal upon instruct
of the Administrator for investment of Plan funds sent to it on be
of the Employer. The accounts will be titled: City of Carlsbad
Deferred Compensation
The Administrator shall have the sole custody of all passboo
or other indices of ownership of said accounts and no investments
withdrawal of funds shall be made in such accounts except in accoi
ance with the instructions of the Administrator and pursuant to th
Agreement.
3. On either a bi-weekly, semi-monthly, or monthly basis,
shall be forwarded to Glendale Federal to be invested pursuant to
Agrement for Participants in the Plan, together with a list indic
to which Employer accounts these deductions should be credited, Pr
upon receipt of said funds, Glendale Federal shall make the approp
credits to the applicable accounts. The legal and beneficial owne
of all such funds shall at all times be vested in the Employer.
4. The Employer shall have the same rights and obligations
connection with any of such invested funds as any other investor
having the same type of savings accounts with Glendale Federal. N
contained herein shall be construed as requiring any Plan funds to
invested with Glendale Federal or to remain invested for any speci
period of time except as may be required by applicable Law or Regu
or the terms of the applicable savings account Agreement.
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The parties intend that the funds shall be deposited in
(or 31) iay certificates of deposit as currently permitted by FHLB
regulation, which shall mature on the day of each month an6
shall automatically be renewed until the same day of the next succ
month, Additions to or distributions from said account shall be n
on the monthly maturity date upon instruction of the Administrator
5. The initial interest rate to be paid by Glendale Federz
this account is compounded daily - paid quarterly, however, j
understood such rate is subject to change from time to time as rec
by Federal Law or Regulation or by action of the Board of Direct01
Glendale Federal. Funds received between maturity dates shall be
posited in an interest bearing passbook account and shall automat:
be added to the 30 (or 31) day certificate account on the monthly
maturity date. Glendale Federal shall notify the Administrator qi
af the rate which will be paid during the next ensuing calendar qi
On a calendar quarterly basis, Glendale Federal will p' 6.
pare a statement of activity in duplicate for each Participant's
deferral and earnings amount.
on the accounts during the period.
attention of the Administrator,
Such statements will recap all act
Statements will be sent to th
7. Glendale Federal shall, from time to time, disburse fu
from the applicable account or accounts as instructed by the Admi
istrator in accordance with this Agreement.
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8. The services to be made available by Glendale Federal u
this Agreement will be performed by Glendale Federal without any c
to the Administrator, the Employer, or the Participants under the
9. This Agreement may be terminated at any time by either
hereto 'upon six (6) months' advance notice in writing to the othe
party .
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10. All notices given pursuant to this Agreement shall be i
writing and may be sent by regular or certified mail, postage preg
addressed as follows: Employer: City Manager, ---- City of Carlsbad
1200 Elm Avenue
Carlsbad, California 92008
Administrator : City Mavr, City oUacm&mm-
-092008
Glendale Federal Savings and Loan Association, Business Developmer
Division, 401 North Brand Boulevard, Glendale, California 91209.
11. Glendale Federal shall be entitled to rely on the writ1
instruction of the Administrator designated by the Employer and SI
not be required to act upon any oral instructions.
12.
both parties.
This Agreement may be modified by a writing executed b:
13. This Agreement shall be interpreted at all times by th
laws of the State of California.
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Administrator : Employer:
City Manager of the City of CarlSbad
1200 Elm Avenue, Carlsbad, CA 92008 1200 Elm Avenue, Carlsbad,
City of Carlsbad
,
GLENDALE FEDERAL SAVINGS ANT
LOAN ASSOCIATION
BY
Title: -
BY
Title:
proved as to Form:
Employer's Attorney
Dated:
At:
CALIFO1:
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fixnlDLL H to 0 0 Resolution ~ Nc
CITY OF CARLSBAD
DEFERRED COMPENSATION PLAN
SECTION 1.
NAME: -_c
Plan (hereinafter referred to as the "Plan").
SECTION 2.
PURPOSE:
of Carlsbad to deEer portions of their compensation and to provide retirement, disability and death benefits,
SECTION 3.
DEFIMITIONS: For the purpose of this Plan, certain words or phrases
used herein will have the following meanings.
The name of this Plan is the City of Carlsbad Deferred Compensa
The purpose of this Plan is to enable Employees of the City
. 3.1 "Employer" means the City of Carlsbad,
3.2 "Emploq.ee" means any officer or Aployee of the City of Carlsbad.
"Participant" means any eligible Employee who elects,
pursuant to the Plan, to defer a portion of his/her
compensation, and who fulfills the requirements for participation in the Plan.
3.3
3.4 "Participation Agreement" shall mean the written agreement by which an Employee elects to become a Participant under
the Plan.
3.5 "Beneficiary" may be any person, trust, corporation or
firxi, 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 may be singular or plural, primary
or contingent.
3.6 "Administrator" means the Employer and/or other parties appointed by the Employer to administer the Plan.
"Compensation" means the total of all amounts which would
be paid by the Employer to or for the benefit of an Employ (if he were not a participant in the Plan) for actual services far the period that he is a Participant,
"Payroll Period'' means the work period for which a pay
check is issued.
3.7
3.8
3.9 "Includible Compensation" means compensation for services
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performed for Employer which is currently includible in gross
income, but less any amounts deferred pursuant to a plan
described.in IRC Section 457 (including but not limited to
this Plan) or IRC Section 403(b).
3-10 "Retirement" means retirement from service with the Employer
which becomes effective on the first day of the calendar mont after Participant meets the age and service requirements for
retirement (including "early" or "late" retirement) specif iei
in the applicable retirement policies of the Employer,
SECTION 4, PARTICIPATION IN THE PLAN
4.1 Any Employee designated by the Employer-to be eligible may
elect to become a Participant in the Plan by executing and filing a Participation Agreement with the Administrator. An
election to Participate in the Plan shall become effective with respect to Compensation earned by the Participant durinc the pay period next following the date of the Participant's
election. Such election shall continue thereafter in full
force and effect unless revoked by the Participant.
Each Participation Agreement shall specify the dollar mount which is to be deferred pursuant to the Plan and to be withhi
out of the Compensation otherwise payable to the Participant
for each payroll period. The amount deferred each year may not exceed the lesser of $7,500 or 25% of Participant's
gross . Compensation. Such deferred amounts shall be
. reasonable equal installments totaling not less than ten
dollars ($10.00) per payroll period.
all of the last 3 tax years ending before a Participant's nornial retirement age the maximum amount deferred annually
amount which can be deferred pursuant to paragraph 4.2 plus 'the difference between the amount which could have been
deferred in prior years and the amount actually deferred pur suant to the Plan.
A Participant may revoke his election to participate in the
Plan, and thereby terminate further deferral of his Compcn-
sation, by executing and filing with the Administrator a
notice of revocation at leastfourtecn(l4) days prior to the effective date of revocation. A former Participant may not
rejoin the Plan during the calendar month in which revocatic occurred; however, he may elect to become a Participant for subsequent calendar months after a lapse of not less than
three (3) months. No amounts shall be payable to an Employ( upon revocation of his participation in the Plan unless otherwise provided for in Section 7.
A Participant may change the amount of Compensation to be
deferred in subsequent pay periods by executing and filing notice with the Administrator at least 14 days prior to the
4.2
4.3 gotwithstanding the provisions of 4.2 herein, during any or
- shall be the lesser of $15',000 or the sum of the maximum
4.4
4.5
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0 DEFEKKED COMPENSATI PLAN 0)
beginning of such pay period, provided however, that such
change may be made not more thanfourtimes'in a calendar year
A Participant may designate in writing a Beneficiary to recei any benefits which may be payable under the Plan upon the death of such Participant. Designation of Beneficiary may be
changed by notice in approved form executed and filed with th Administrator,
4.6
SECTION 5, DEFERRAL OF. COMPENSATION
5.1 During the period of participation, the Employer shall not pa
the Participant his full compensation, but shall defer paymen of such part of his Compensation as the Participant has
specified in his Participation Agreement. The Employer shall
establish in its records an Individual Deferred Compensation Account ("IDC Account") for each Participant, and a summary
of such IDC Accounts, to be identified as a General Deferred Compensation Account ("GDC Account"), to provide a convenient
.method of measuring its obligations to each and a11 Participa
. under the Plan.
5.2 Neither the existence of the Plan Go6 the IDC Accounts shall
be deemed to create a trust, and the Employer shall at a11 times be the legal and beneficial owner of all assets of said
ID@ Accounts.
5.3 Neither the existence of the Plan or the IDC Accounts shall
entitle any Participant, a beneficiary of any Participant, . or a creditor of any Participant to a claim or lien against
the assets of the IDC Accounts. The Participant and his
beneficiary shall have only the right to receive benefits
pursuant to the Plan.
SECTION 6, ADMINISTRATION OF THE PLAN
6.1 The Plan shall be administered by the Administrator under the
direction of the Employer. Acting for and in behalf of the Employer, the Administrator may transmit amounts in the IDC
Accounts to such investment plans as hereafter may be approve
by the Employer, In regard to such investments, written
agreements between employer and the institutions accepting funds for investment shall contain at least the following
provisions:
. 6.1(a) Any investment of amounts in the IDC Accounts, including earnings on such amounts, shall be made
according to written instructions of the Administrato
6.l(b) The Employer shall be the legal and beneficial owner of all amounts invested (as between Employer and
Participant). The Employer shall hold all certificat
' policies and other documents evidencing.ownership of the amounts invested, and shall maintain records,
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including records of the IDC Account of each Participant and the GDC Account,
6.l(c) No less frequently than quarterly, the Zmployer shall be furnished with written reports showing the fair * market value and/or the current balance of the amount
invested (including interest and dividends accrued, if any), and amounts shown in such reports shall be
reflected in each Participant's IDC Account by the Employer .
6.l(d) No less frequently than quarterly, each Participant
shall be furnished with a statement showing transacti
earnings and the current balance of the amounts inves from his IDC Account.
6.l(e) The Employer shall have the sole right to vote any
shares of stock or proxies which it may acquire or be entitled to by investment of IDC Account funds.
6.'2 The Administrator shall record promptly and accurately all
transactions pertaining to Participants' Deferred Compensatic
' in their IDC Accounts, and Participant shall be entitled to
know the balance in his IDC Account at least quarterly,
6.3 The Employer shall have the sole authority to enforce the Pla and shall be responsible for its operation in accordance witl- its terms. -
6.4 The Employer shall determine all questions arising out of the
administration, interpretation and application of the Plan.
All determinations shall be conclusive and binding.
6.5 Prior to the time specified in the Plan for payment to Partic
* applicable) the amount of benefits to be paid to him, or in
pant each Participant shalz elect the time, manner and (if
$he event of his death to his Beneficiary, under the Plan, 3: no election is made, payment may be made as a lump sum
distribution.
6.6 In the event that the Employer should purchase an annuity as a means of investment and distribution of funds in a Partici-
pant's IDC Account, the Employer shall be both the owner and
the named Beneficiary 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 investment (as provided in Section 4.4). Such request may be made only with respect to compensation not yet earned
and deferred. The Employer may, but is not required to, honc such request. The minimum investment in each type of investn shall be ten dollars(S10.00)per Payroll Period. Nothing
contained in this Plan shall be construed as requiring the Employer to invest deferred amounts or as limiting the Emploq
discretion with respect to making investments,
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DEFERRED COMPENSATION PLAN
SECTION 7. BENEFITS
The Employer shall pay to the Participant, or to his Beneficiary if
applicable, the amount in such Participant's IDC Account as of the
month-end following the Participant's termination, retirement, total
disability or death, Distribution of Benefits under the Plan will be 'made, or if in installments shall commence, not later than sixty (GO) days after notice to the Administrator of the occurrence of the
events or birthday described in Section 7 unless otherwise specifical:
provided in the Participation Agreement. All distributions shall be
subject to any State or Federal taxes required to be withheld, Paymei shall be made in accordance with the election made in the Participatic
Agreement, except in the event of Hardship described in Section 7.4.
Installment distributions shall be approximately equal installments which shall be intended to exhaust the balance due Participant or
Beneficiary at the expiration of the term over which they will be
made,
take into consideration gains or losses, if any, from fuilds invested,
. Notwithstanding the foregoing if any method elected by the Participan
shall result in installment payments of less than $50,
shall make payments on an annual basis aggregating installments other
wise due; or if the balance due Participant or Beneficiary is less th
$1,000, Employer shall discharge its obligation by a lump sum payment
. Such installment amounts may be adjusted from time to time to
. the Employer
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 Parti- cipant in any one or more of the following ways,
elected at time of enrollment:
7.l(a) In a lump sum.
7.l(b) In monthly, quarterly, or annual payments for a
designed period of not less than one year and
not more than the remaining years of the Parti-
cipant's Life expectancy, determined by the
Administrator in accordance with standard mortalit1
as pre-
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* tables recognized for that purpose,
.I 7.l(c) In payments, under 7,l(a) or 7.l(b) above, postpone
by pre-election at time of enrollment until Particj
pant reaches age 55.
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DEFERRED COIJIPENSATION PbAN
7.2 OTHER TERJIINATION: In the event of termination of employment
before retirement for reasons other than those specified in
Section 7.3 and Section 7.4, then the full benefits credited
* to Participant's IDC Account, plus or minus subsequent gains
or losses, shall be distributed to him in any one or more of the following ways, pre-elected at the time of enrollment:
7.2(a) In a lump sum.
7.2.(b) In monthly payments over a period not to exceed ten
(10) years from date distribution begins,
by pre-election at time of enrollment until Participar
reaches age 55.
. 7.3 TOTAL PERMANENT DISABILITY: In the event of the total permanc
disability of a Participant while he is an Employee of the Employer, the Employer shall pay to the Participant an amount equal to the balance of the Participant's IDC Account as of tf. month-end following the Employer's determination of such dis-
ability, such amount to be paid in the manner pre-elected by the Participant at the time of enrollment pursuant to the
options in Section 7.1, above,
7.4 HARDSHIP: In the event of occurrence to the Participant of ai
unforseeable emergency event to be determined by the Employer in his sole discretion, the Employer may pay to the Participai
all or any portion of the amount in such'Participant's IDC Account as of the month-end following the date when such detei
. . mination is made. As used herein, emergency event shall mean
only a real emergency which has occurred, which is or was bey(
control of the .Participant, and the occurrence of which has'oi
wocld cause the Participant great financial hardship.
amount that will be paid out shall be limited to the amount
necessary to alleviate that hardship.'
Any distribution under this section shall be deemed a revocat under Section 4.4 and no further deferral of Compensation wil
be made unless Participant subsequently re-elects to particip, as provided in 4.4.
7.5 DEATH: In the event of death of any Participant, either befo or after termination of employment, then the full benefits 'credited to his IDC Account shall be distributed to his Bene-
ficiary in a manner described in Sections 7.l(a), 7.l(b) and
7.l(c) as pre-elected at time of enrollment.
7.2(c) In payments, under 7,2(a) or 7,2(b) above, postponed
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' DEFERRED COMPENSATION PLAN
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SECTION 8, MISCELLANEOUS
'8.1 The contractual obligation of the Employer to -the Participant
established by the Plan 'shall not be assignable in whole or
part, voluntarily or by operation of law, and no right or interest of a Participant pursuant to the Plan shall be
subject to any obligation or liability of such Participant or his Beneficiary, except as provided in the next paragraph hereinbelow.
No'Participant or other person shall have any legal or equita
right against the Employer except as provided in the Plan, an in no event shall the terms of'employment of any Employee or Participant be modified or in any way affected thereby.
8.3 Each Participant herein expressly agrees for himself and his Beneficiary that he shall look solely to the general assets of the Employer for the payment of any such benefit to which he may become entitled under the Plan, and acknowledges that
all amounts deferred hereunder shall be available to satisfy
the general obligations of the Employer-
The Plan has been adopted in the State of California and sha: be construed and governed and administered in compliance witf all applicable State law.
Captions used in the Plan are for the purpose of convenience
only, and shall not limit, restrict or enlarge the provision of the Plan.
The Plan shall be binding upon and shall inure to the benefi
. of the Employer, its successors and assigns, a11 Participant
and Beneficiaries, and their heirs, and legal representative
8.7 As used in the Plan, the masculine or feminine or neuter gen and the singular or plural numbgr.shall each be deemed to include the others unless the context clearly indicates othe
wise.
Any notice or other communication required or permitted unde
the Plan shall be in writing and, if directed to the Employe
shall be sent to the Administrator at his principal office;
and, if directed to a Participant or a Beneficiary, shall be sent to such Participant or Beneficiary at his last known
address as it appears on the Employer's records, Such notic
shall be deemed given when mailed.
Deductions for Participant's contributions to retirement
shall be made without reference to amounts deferred pursuan' to the Plan.
An approved leave of absence with pay shall not affect agrec
ments to participate in the Plan,
* 8.2
'8.4
8.5
8.6
8.8
.8.9
. 8.10
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'7 DEFERRED COI4PENSAT a PLAN
8.11 An approved leave of absence without pay shall be considered
be a temporary suspension of participation in the Plan.
Participation shall- be automatically reinstated as'of the fir
day of the next Pay Period subsequent to the termination of
such leave of absence status.
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8.1'2 The Employer shall make no loans or advances to the Participa or Beneficiary based upon IDC Accounts, described herein, or
upon any other obligations under the Plan.
SECTION 9. TERMINATION OF PLAN BY EMPLOYER
The Plan may be amended or terminated by the Employer at any.time,
the Employer may, without amending or terminating the Plan, cease t
set aside assets under the Plan. No amendment or termination of th
Plan, and no cessation of the setting aside of assets by the Employ shall reduce or impair the rights of any Participant or Beneficiary
which may already have accrued.
9.1 If the Plan is terminated by the Employer, the Employer may,
elect to distribute, in the same manner to all Participants,
amounts equal to the balance of their IDC Accounts as of the
month-end following such termination.
9.2 If Employer does not elect to pay accrued benefits on termina of the Plan, he shall cease all deferrals of Compensation, bu payments of benefits shall be made pursuant to the applicable
provisions of Section 7 of the Plan and the irrevocable elect
of the yarious Participation Agreements then in effect.
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