HomeMy WebLinkAbout1988-04-26; City Council; 9400; ICMA deferred comp program trust agreement8-
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MTG. 4126188
DEPT.
TITLE:
ICMA DEFERRED COMPENSATION
PROGRAM TRUST AGREEMENT CITY A- \.
CITY MGR.w-
Adopt Resolution No. n-13~ approving the Trust Agreement with ICMA Retirement
Corporation.
ITEM EXPLANATION:
Several years ago, the City began offering the ICMA Deferred Compensation program
to all employees as an optional method of augmenting the existing retirement
system.
advisors and options were the responsibility of ICMA-RC.
Under this program all decisions related to the selection of investment
By executing the relationship described in the resolution, the City will
participate in an organizational structure designed to give the public employers
in the plan ultimate control over the management of the funds. Each public
employer will have the opportunity to nominate and vote for a group of nine
trustees who have the power to conduct the business of the Trust and carry on its
operations. The nomination and election process, therefore, gives the
participating employers a direct relationship with these functions which include
oversight of the Retirement Corporation's performance, appointment of the
auditors, and monitoring investment goals and objectives.
This change provides the City with a more active voice in the ultimate management
of the program.
FISCAL IMPACT:
This action has no fiscal impact.
be associated with adopting the Trust Agreement.
No additional costs, savings or revenues will
EXHIBITS :
Resolution No. 88-136 approving the Trust Agreement.
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RESOLUTION NO. 88-136
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, EXECUTING THE DECLARATION
OF TRUST OF THE ICMA RETIREMENT TRUST
WHEREAS, the City has employees rendering valuable services: and
WHEREAS, the establishment of a deferred compensation plan for such
employees serves the interests of the City 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 City has determined that the continued provision of a
deferred compensation plan to all City employees administered by the ICMA
Retirement Corporation serves the above objectives; and
WHEREAS, the City desires that the investment of funds held under its
deferred compensation plan be administered by the ICMA Retirement Corporation,
and that such funds be held by the ICMA Retirement Trust, a trust established by
public employers for the collective investment of funds held under their
deferred compensation plans and money purchase retirement plans;
NOW, THEREFORE, BE IT RESOLVED that the City of Carlsbad hereby executes
the Declaration of Trust of the ICMA Retirement Trust, attached hereto as
Exhibit A.
BE IT FURTHER RESOLVED that the Finance Director shall be the coordinator
for this program and shall receive necessary reports, notices, etc. from the
ICMA Retirement Corporation or the ICMA Retirement Trust, and shall cast, on
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lehalf of the Employer, any required votes under the program. Administrative
luties to carry out the plan may be assigned to the appropriate departments.
PASSED, APPROVED AND ADOPTED, at a regular meeting of the City Council of
.he City of Carlsbad, California, held on the - 26th day of 11988 by the following
April
rote, to wit:
AYES : Council Members Lewis, Kulchin, Mamaux, Larson
NOES :
ABSENT: Council Member Pettine
4TTEST :
D ILETHA &UTENKRANZ, City Clerk
[SEAL)
EXHIBIT "A" mPmwx _-
ARlEUE I. NAME AND DEFlNmONS
DECLARATION OF TRUST
OF
ICMA RETIREMENT TRUST
@) Trust Properly The amour& held in the ReWement Trust on behalf d the Publc - Mnn: The -* Employen in cmnect~on mth Deferred Canpensalton Plans and on behalf dthe
Publc Emdmr kustses for the &use benem d Emdm pursuant to Ouali- IC the CMA wmnt 'kusl
ARTICLE II. CREATION AND PURPOSE OF THE TRUST OWNERSHIP and ma~ntarnod by a Public Emplqrsr tor the purposa d prcmd~n~ fet~ra ment ifcome and other deferred benehts to ns employees in accordance
*nth the prmsom d secbon 457 d the Internel Remn~e Cak d 1954. OF TRUST PROPERTY
assunended
(c) Emplm Those emplu@es who parllcrpate in Qualfied Plans
(d) Employer Trust A trust created pursuant to an agreement betwen RC
and a Publc Emp(oyer fw the purpose d investing and admirwstenng the
tunds s~l asde by such Emplupr in connection WRh IIS Werred Cornpen
Section 2.1 Cnrtlon: The Retirement Trud IS created and established by
the execution d thts Dedarcllton d hs! by the Trustees and the Public
8.ctlon 2.2 Pum: Ihc purpose d tht RetlremcMt Trd IS to pmde br
the commingled investment d funds held by the Public Emplqen in mn&- tm mth thstr Deferred Canpensatton and Oualified Plans The Trust Prop
Emplayerr
efty shall be inrSSred in the Pwndros. in Guaranteed Investment Contracts
and in other investments recommended by the InveStment Mwser under the
mpewmnd Uw Board dTiusrees NoperldIk'lnstPropertyw9 bevkested
m ~WT&S mued by PUUK Employers
Won 2.3 Ownonhlp of hrrt Proprrty: The Trustees *an havc mal
We to the Trust Property The PUBIC Employen shall be the benehcial ownen
d the porlion d the Trust Prope*y docable to the Deferred Compensation
Plans The portron d the Trust Property allccable to the Oualified Plans shall
k hdd for the Publc Empluyer Trustees br the exduove beosclr d the
Employees
ARTICLE 111. TRUSTEES
Won 3.1 Number and OurlHiutlon d Trudoor.
(a) The Board of Trustees shell congst of mne Trustees Five d the Tfustees
ehall be full-bme employees of a Publlc Employer (rtn Public Employee
Tmees) who are authwued by such PUMIC Employer to mwe as Trustee
The remaining Iwr Trustees OM1 cwrrist of two persons who. at the he of
Jection to the Board of Trustees. are manbers d the Board Or Ikrs*m of
CMA and two persons who, a the am d dedion. arc members d the Board
d Dtr&lon d RC (Ihe ICMAIFK: Trustees) OnS dthe TWees who IS a Gram
d CMA, mnd me of the Trustees whor diref3ctor of RC. MI. .I thet~m
d doclion. be Weme employees d a Puble Employer
@)No psnon may sene as aTmec (a more hn one tom many ten-year w
(a) Empt for Lhe hs~ees Irppamed to M mcancaes purwsnl to sechon 35
hared, the Trustees stu~ll be elected by vde d a mapnty dthe Publc
Employsn in maxdance wth the procedures w torth M the By-
Soctlon 3.2 Ekaron wd 'Ihm.
ARTlClE V. WTY OF CARE AND LIABILITY OF TRUSTEES
Won 5.1 Duty d Can: In exemtlng the pamtn hereinbefore grarded to
(hs twletz tht Trustees shall pedm all acts whin mar authonty for the
dusivs purpose d prwldtnp benetits tor Ihe Publc Employers in conrmc.
bon Wm, eeiensd bmpenvlbon Flans and Publc Emprcyzr kustees pursuant
to oualw Plans and SMI pem such acts m the care. &Ill. prudence
and diligence in the arcurnstances then prwling that a prudent person act-
mg in a Ilk capacrty and familiar mth such matters -Id uw in the conduct
d an entarpnse d a Lko character and mM kke &ma
Sodion 5.2 Witty: Tha Tmees shall nd be habk wary rmsfz~kedludg. ment w mer -on taken in good Bnh. and for any action taken or mmed
m rdmnce in good Wh upon the books deaxxlm or other records dthe
Retirement Trust, upon the opnm d counsel. or upon reports made to the
Ramm Trust by any d tts ofken. aplo~ees or agenb or ty the II-WSI-
menl Advlser or any subinvestment adnser. accounCant+ appraisers or Uher
~cperb or conwbnts selected mth reasonable care by the TNS~S~S dlicers
or employees of the Retirement Trust The Trustees shall also not be hat& for
my M sustained by the Trust Pfuperty ty reason d any imestment made
n DoDd$Ith andm.cbadanwwthIhc starclard dmmm mSemon51.
8.ctlon 5.3 Bond: No Trustee shall be obligated to gibe any bond or other
mcunly kr thc perfwnance d any d his w her duttes hereunder
ARTICLE VIII. YlSCELUNEOUS
Won 8.1 Gowrnlng W Empt as othenwse required by state or laal
Irw, this Waration ol Tiust and the Retirement Twsl hereby created shall be
construed and regulaled by the laws d the D~dnci d Cdumtna
Sodon 8.2 Counhrprrb: Thts Ddarahon may be executed by the Public
Employen and Tiustees in hm or more counterpart$ each Or whtch shall be
deemedan oryrnal butalldwtnch~shalhall COnStiiute une and h same
instrument
** Approved by the Carlsba
City Council, Res. # 88-136
on 4/26/88