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HomeMy WebLinkAbout1994-01-04; City Council; 12527; Administrative Svcs Agmt w/ ICMA Retirement Corpa Q * g 8. 4 B z t- o 2 a d z 3 0 o ..e--- CI-PIOF CARLSBAD - AGE- BILL B7& AB f /$!-: sa3 TITLE: DE MTG. I-Y-'?'! THE NRN ADMINISTRATIVE SERVICES AGREEMENT CI1 DEPT. HR WITH ICMA RETIREMENT CORPORATION CI1 RECOMMENDED ACTION: Adopt Resolution No. 9Y- 3 approving the Administrative Services Agreement with ICMA Retirement Corporation. ITEM EXPLANATION: In 1983 the City of Carlsbad entered into an agreement with ICMA Retirement Corporation (ICMA RC) that allowed the City to offer its employees the opportunity to participate in a qualified deferred compensation plan as part of a total retirement package. Under this agreement both the trust and administrative duties were assumed by ICl RC. A short time after the City entered into the original agreement, lCh RC divided the trustee and administrative duties between the ICMA Retirement Trust and the ICMA Retirement Corporation respectively. Although the 1983 agreement is still valid and in effect with all truste duties being carried out by ICMA Retirement Trust, the administrative agreement originally indicated that ICMA RC would be responsible for tt dual role of administrator and trustee. Since this is not consistent wit practice, we are recommending that the administrative agreement be amended to remove the references to a trust relationship. The attachec letter from the legal office of ICMA RC provides additional explanation. The action before the City Council will authorize the Mayor to sign the new Administrative Services Agreement. FISCAL IMPACT: This action will have no fiscal impact. The new Administrative Servicc agreement does not affect the range of services or fees charged under I administrative or trust agreement. 0 0 PAGE 2 OF AB # i%,sg3 EXHIBITS: 1 . Resolution No. 5 cI - rj approving the Administrative Services Agreement with the ICMA Retirement Corporation. Letter from the legal office of ICMA Retirement Corporation dated December 10, 1993. 2. 3. Ad mi n istrative Services Ag reem en t. 4. Deciaration of Trust of ICMA Retirement Trust. I i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 l9 a 0 RESOLUTION NO. 94-7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE NEW ADMINISTRATIVE SERVICES AGREEMENT WITH ICMA RETIREMENT COR PORATION. WHEREAS, the City Council has determined that it is desirabk to continue an existing relationship between ICMA Retirement Corporation and the City of Carlsbad. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. 2. That the above recitation is true and correct. That the City Council approves an agreement authorizin! the retention of ICMA Retirement Corporation to offer a Deferred Compensation Program to employees of the City of Carlsbad, and authorizes the Mayor to execute said agreement. !Ill 20 21 22 23 24 25 26 27 28 111 111 Ill Iff fit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 e c PASSED, APPROVED, AND ADOPTED at a regular meeting of the 4th day of Januarv , 1994 by Carlsbad City Council held on the the following vote, to wit: AYES: Council Members Lewis, Stanton, Kulchin, Nygaard and Fir NOES: None ABSENT: None ATTEST: ALETHA L. RAUTENKRANZ, city Clerd (SEAL) e 0 Suite 603 777 North Capitol Street NE Washington DC 20002-A240 (202) 962-4600 To1 -Free (800) 669 7400 December IO, 1993 Debbie Ocompo City of Carlsbad 1200 Elm Avenue Carlsbad, California 92008 RE: Administrative Services Agreement Plan Number 11 24 Dear Ms. Ocompo: I am writing to provide you with a more detailed explanation of the reasons t Retirement Corporation has sent you the proposed Administrative Services Agreeme The Retirement Corporation was founded in 1972 to provide services to deferr compensation plans of state and local governments. From that time forward, . Corporation entered into individual trust agreements with Public Employers, and t trust agreement was known as the "Trust Agreement with the ICMA Retiremc Corporation". Under that agreement, the Retirement Corporation acted in a d capacity: as trustee with investment responsibility and as plan administrator. In 1983, the ICMA Retirement Trust was established as an entity legally separ from the Retirement Corporation. The Retirement Trust, a District of Colurr common law trust, provides for the commingled investment of the assets of defer compensation and retirement plans of participating state and local governments. E, Public Employer participating in the Trust adopts the "Declaration of Trust of ICMA Retirement Trust". With the establishment of the Retirement Trust, the trustee function was assume( the Trust's Board of Trustees, and the responsibility for the investment of the TI property rests with that Board. The Retirement Corporation is under contract with Trust to act as investment adviser to the Trust. Despite the establishment of the Retirement Trust, and up until 1991, the Retirerr Corporation continued to enter into the individual trust agreements because 1 provided a basis for the plan administration services. However, the Retiren Corporation has not truly functioned as a trustee since the Retirement Trust established . TCIMA-L?C S,,,kas, -kc, i!F Membe- VASD ar'd SIDC IS a wnoIIL 3wreo broer-dealer si,csid ary c'tne ICIVA Rei 'errell Corpo,abon @ e 0 Page 2 Ms. Ocompo December 13, 1993 Thus, the purpose of the Administrative Services Agreement is to clarify and upda the actual relationship between the Retirement Corporation (as plan administrator) ar each Public Employer's deferred compensation plan, and to provide a clearer indicatic of the services provided by the Retirement Corporation and the fees that are current charged for those services. This clarification is mainly accomplished through replacement of the "Trust Agreeme with the ICMA Retirement Corporation" (see Section 2 of the Administrative Servic Agreement). You will note that under the Administrative Services Agreement, ti Retirement Corporation does not act as trustee. This is not to say the assets of tl plan are not "trusteed"; they are held by the Retirement Trust, and the duties of tl Trustees of the Trust are outlined it the Declaration of Trust. The fees contained in Section 6 of the Administrative Services Agreement are r new; those fees have been charged to participant accounts for quite some time. In case you do not have copies, I have enclosed the documents referenced in tl letter. I have also enclosed the March 1993 version of the Trust's Retiremc Investment Guide. Please contact Jan Feldman, my Legal Assistant, if you have any questions comments. Her number is (202)962-4677. Sincerely, Michael Schaefe House Counsel ICMA RETIRIMENT 0 0 CORPORATIO I ADMINISTRATIVE SERVICES AGREEMENT Type: 457 Account Number: 1124 ILIVIR RETIREMEN r CorwoRmor 0 0 Plan # 1124 ADMINISTRATIVE SERVICES AGREEMENT This Agreement, made as of the da of 199 ,(herein referred to as the "Inception Date"), il etween The Internatic City Management Association Retirement Cor oration "RC"), a nonprofit the laws of the State of California with an office at 1200 Elm Avenue,Carlsbad, California, 92008. corporation or anized and existing under t R e laws o I the State of Delawar and the City o f Carlsbad ("Employer"), a(n) City organized and existing i Recital s Employer acts as a public plan sponsor for a retirement pl with responsibility to obtain investment alternatives and servic The ICMA Retirement Trust the "Trust") is a common law t f"" or emp an7 oyees participating in that Plan; governed by an elected Board of Trustees I or the commingled investment o investment of plan assets as referenced in the Trust principa 1 disclosurl retirement funds held by state and local governmental units for their empl oyees ; RC acts as investment adviser to the Trust; RC has design1 and the Trust offers, a series of separate funds (the "Funds" document, "Making Sound Investment Decisions: A Retirement Investment Gu The Funds are available only to public employers and only through the T In addition to serving as investment adviser to the Trust provides a complete offering of services to public employers for the ope of employee retirement lans including, but not limited to, communicatio keeping, investment and tax reporting, form processing, benefit disburse and asset management. for the concerning investment a 7 ternatives, account maintenance, account record- -2- lLMA RETIREMENT CORPORATIOF 0 0 Plan # 1124 Agreements 1. Appointment of RC perform all non-discretionary functions necessary for the administration the Plan with respect to assets in the Plan deposited with the Trust. functions to be performed by RC include: individual accounts to investment Funds offered by the Trust; reflecting amounts deferred, income, gain, or loss credited, and amounts disbursed as benefits; participants of the status of Plan investments and individual accounts; Employer hereby designates RC as Administrator of the Plan Th allocation in accordance with participant direction o (a) (b) maintenance of individual accounts for participants (c) d) (e) accordance with terms of the Plan. 2. Replacement of Employer Trust RC and Employer are parties to a Trust A reement entitled "Trust Agreement with the ICMA Retirement Corporation" ?the "Employer Tri for the administration of the Plan. Employer Trust (not the Declaration of Trust of ICMA Retirement Trust) intending that this Administrative Services Agreement evidence the understandings between RC and the Employer with res ect to the matters c by it. ICMA Retirement Trust and agrees that operation of the Plan and investme management and disbursement of amounts deposited in the Trust shall be s to the Declaration of Trust, as it may be amended from time to time and also be subject to terms and conditions set forth in disclosure document (such as the Retirement Investment Guide or Employer Bulletins) as those and conditions may be adjusted from time to time. 3. Employer Duty to Furnish Information information as is necessary for RC to carry out its responsibilities as Administrator of the Plan, including information needed to allocate indi provision of periodic reports to the Employer and communication to participants of information regardir disbursement of benefits as agent for the Employer ir their rights an 6 elections under the Plan; and The Employer hereby terminates the Employer continues to be a party to the Dec 7 aration of Trust of Employer agrees to furnish to RC on a timely basis such -3- ILlVlR RETIREMENT CORI’ORA’HOF 0 0 Plan # 1124 participant accounts to Funds in the Trust, and information as to the employment status of partici ants, and participant ages, addresses and ot RC shall entitled to rely upon the accuracy of any information that is furnished 1 by a responsible official of the Employer or any information relating to individual participant or beneficiary that is furnished by such participi beneficiary, and RC shall not be responsible for an error arisin from . reliance on such information. any report, statement or accounting to the Employer or a participant, tht Employer or participant has not notified RC in writin accepted by the Employer and the participants. 4. Certain Representations, Warranties, and Covenants identifying information (inc ! uding tax identification numbers). If within ninety (901 days after t 8 e mail- objection, such report, statement, or accounting shal 9 be deemed to have of any error or RC represents and warrants to Employer that: (a) RC is a non-profit corporation with full power and authority to enter into this A reement and to perform its obligations un is dependent upon the continued willingness of the Trust for RC to serve that capacity. this Agreement. The ability o 7 RC to serve as investment adviser to the Securities and i xchange Commission under the Investment Advisers Act of b) RC is an investment adviser registered as such with as amended. ICMA- RC Services, Inc. (a wholly owned subsidiary of RC) is registered as a broker-dealer with the Securities and Exchange Commissio (SEC) and is a member in good standing of the National Association of Securities Dealers, Inc. RC covenants with employer that: (c) RC shall maintain and administer the Plan in complia with the requirements for eligible deferred compensation lans under Sec responsible for the eligible status of the Plan in the event that the En directs RC to administer the Plan or disburse assets in a manner inconsi with the requirements of Section 457 or otherwise causes the Plan not tc carried out in accordance with its terms; provided, further, that if thc document used by the Employer contains terms that differ from the terms RC‘s standardized plan document, RC shall not be responsible for the el status of the Plan to the extent affected by the differing terms in the Empl oyer‘s pl an document. 457 of the Internal Revenue Code; provided, however, RC s R all not be Employer represents and warrants to RC that: (d) Employer is organized in the form and manner recite( the opening paragraph of this Agreement with full power and authority tc into and perform its obligations under this Agreement and to act for thi -4- ICMA RETIREMENT CORPORATIOP 0 0 Plan # 1124 and participants in the manner contemplated in this Agreement. Execution delivery, and performance of this Agreement will not conflict with any la rule, regulation or contract by which the Employer is bound or to which G a party. 5. Participation in Certain Proceedings The Employer hereby authorizes RC to act as agent, to appc its behalf, and to join the Employer as a necessary party in all le a1 proceedings involving the garnishment of benefits or the transfer of beni ursuant to the divorce or separation of participants in the Employer Pll he Em loyer consents to the disbursement by RC of benefits that have bec fE garnis ed or transferred to a former spouse, spouse or child pursuant to domestic re1 at i ons order. 6. Compensation and Payment (a) Plan Administration Fee. The amount to be paid for administration services under this Agreement shall be 0.9% er annum of amount of Plan assets invested in the Trust. paid at the end of each month on plan assets in the Trust at that time. (b) Account Maintenance Fee. There shall be an annual a maintenance fee of $18.00. The account maintenance fee is payable in ful January 1 of each year on each account in existence on that date. accounts established after January 1, the fee is payable on the first da the calendar quarter following establishment and is prorated by referenc the number of calendar quarters remaining on the day of payment. (c) Compensation for Advisory Services to the Trust. En acknowled es that in addition to amounts payable under this Agreement, F receives 7 ees from the Trust for investment advisory services furnished Trust. (d) Payment Procedures. All pa ments to RC pursuant to Such fee shal 7 be computed For Section 6 shall be paid out of the Plan Assets x eld by the Trust and shz paid by the Trust. adjusted by the Trust as required to reflect such payments. 7. Custody Employer understands that amounts invested in the Trust I be remitted directly to the Trust in accordance with instructions provii Employer by RC and are not to be remitted to RC. In the event that any or wire transfer is incorrectly labelled or transferred to RC, RC is authorized, acting on behalf of the transferor, to transfer such check 1 transfer to the Trust. The amount of Plan Assets held in the Trust shall be -5- ILIMA CORPORATION RETIREMEN r 0 0 Plan # 1124 0. PI an. 9. Term party on sixty days advance notice in writing to the other. 10. Amendments and Adjustments (a) instrument signed by the parties. (b) this Agreement and administrative and operational arrangements may be adjusted as follows: RC may propose an adjustment by written notice to the Emp’ given at least 60 days before the effective date of the adjustment and ti notice may appear in disclosure documents such as Em loyer Bulletins and Retirement Investment Guide. within the 60 day period before the effective date the Employer notifies writing that it does not accept such adjustment, in which event RC shall under no obligation to provide services under this Agreement. (c) No failure to exercise and no delay in exercising an. right, remedy, power or privilege hereunder shall operate as a waiver of right, remedy, power or privilege. 11. Notices All notices required to be delivered under this Agreement be delivered personally or by registered or certified mail, postage prep return receipt requested, to i) RC at 777 North Capitol Street, N.E., S 600, Washington, D.C, 20002- 4 240; (ii) Employer at the office set forth the first paragra h hereof, or to any other address designated by the pa 12. Complete Agreement This Agreement shall constitute the sole agreement betwet and Employer relating to the object of this Agreement and correctly set: the complete rights, duties and obligations of each party to the other i its date. Any prior agreements, promises, negotiations or representatic verbal or otherwise, not expressly set forth in this Agreement are of nc Responsi bi 1 i ty RC shall not be responsible for any acts or omissions of a erson other than RC in connection with the administration or operation o This Agreement may be terminated without penalty by either This Agreement may not be amended except by written The parties agree that compensation for services undc Such adjustment shall E ecome effective unli receive the same L y written notice similarly given. -6- ICMA RETIREMENT CORYORATIC e 0 Plan # 1124 and effect. 13. Governing Law This agreement shall be governed by and construed in acco with the 'laws of the State of California a plicable to contracts made in In Witness Whereof, the parties hereto have executed this jurisdiction without reference to its conf 7 icts of laws provisions. Agreement as of the inception Date first above written. Claude A. Lewis, Mayor Name and Title (P1 ease Print) INTERNATIONAL CITY MANAGEMENT TION RETIREMENT CORPORATION Asso%s by : ON &4l!k#$- /0-/-4? Stephen Wm. Nordholt/D ate Corporate Secretary -7- 1 EXHIBIT "A" X $ e. DECLARAllON OF TRUST OF ICMA RETIREMENT TRUST (0) Rettranent kun The hrs( created by ms Waratton d @) Tnnt Property The amaunts hdd in the Rdrament Trust on Ernplovers in conoecbon a Deferred Cwnpensaticm Ptam a Publc Employar kustse~ fu tha ~UOM tm-& d Emplcytb fhed plans The krnt Pmpe~?~ shdl inducb my income resub m(Kd drheamouldsroheld (s) 'liusteen The Publc Employee Tiuslees and ICMAlRC Trus Publc Emplupm (0 tmre at memben d the Board d kustsc ARTICLE 1. NAME AND DEFlNmONS sectlocr '*' M~u' The NamedthekuQ a~af?w&d vd re&itd hecsby, Sect- 1.2 DoflnWom Whsreverthayarsusedheran. Ihafotkawngm (a) BrLam Ths By-Lsws mlensd to in &don 4 1 hetad, as amcmjad tram bmeobma @)DeknsdccnpsmmRanAWensdwm~phn~ hrsl Id WnCarnSd by & P~bk Employe? kr the pup080 d p~&ng fWe m(MI ~ncome and dher deferred bensfitsto Cbmplcysss in acmfdme Hth the prmsons d sscbor, G7 d Ihe IntSmJ R- cod. d 1954. ass. (c) E~~ Those emplqmes who pampate in Qwrmsd Pbns (d) Ern- Trust A @US crsatad pursuant to an agreamerd b#wen RC and a PuUc Ernploysf for ths purpose ol irmsting and adrmcwstenng the lunds ae~! asde try ouch Empluyer in connschon umh nt Deferred Cunpsn won agqrsemdc~wrth I?S employsssct incu-nedmwrth IB Ourd~WPyr (e) Guaranteed Invss~neM Cornrat3 A contract antsred into by the Rdrre nmm kwt wm tnsurarwcanpamttud prcmdes kra guaranteed rate d return on inusstments made pursuant b tuct\ cmtrsct. 0 CMA The Intsrmd Cny ManaQarnerd Assoaabon. @) CMA/FIC Trueas fhossTrustees dected bythe pubkc Emplqemwtm n lccordancs wlh the prcwnuonc d SeaKn 31(8) hered, am Jw rn bsn d tho Bard d Dwscton d tCMA or RC (h) lnveshnsnt Mnser The I- AdvMt tM entan into a contnct wthths Retirement 'tius to pIOndsadwx W rsspatta 1- d m-RoP.ny (7) ~los The PortEdrm d blmwmml eSab(l6hbd by the I- IS mS EMA Wmnt Tiusl rhon ham the #(crmng respcbw meermgs. AATKXL II. CREATION AND PURPOSE Of THE TRU Section 2.1 cI.rtlon: The Ram TIUSI IS usated the ggcutton d trws Dedamtm d kust by the kustc Sw!h 2.2 Purpcm: lhe purpow dtho Re(lrament 3 the canmingled tnvdsbnbnt d funds held by the Pubk Er t)on mth hr Deferred Campentacion and Oualified Ro otty rMI be inwsted in the Pwttdios. in Guaranteed In and in dher invasbnefUs rscanmended by the lnvedmer .JpervnwndtheBoPrddhSeesNopeRdthaMPrq m atcunhw muod by Publrc Employem section 2.3 ownmhlp ol mst Property: The TrUstI Wetothe liult ProQay The Publc Emplums shall be tt dm- dths liuslP~d(0Csble toh Dele Pbm Th. pocuon OrmSTnrst Property al!acatSt tothe C be held Iw ths Publlc Ernpcover %ustees for the &I Empr<ryees OF TRUST PROPERTY Emploven. AmaE 111. -s Mwosr tootha R&rsmsrd liust. under the rupsnnmon dIhslhntss* lot the ptrpae d pnmdtng imwbnefu brthe 'Iiust Roperty @I,EEmplqse~b~dscjsdbythsPubllcG@~jt~~ who. in accadBncc WNI the pmmons d!hcbon 31(a) hod. m Wbma mpkVws d Publr Emcdqms (k) Pubk Employerksteea PubbcEmplupswhoaui8utntdimsd F) Pubkc Empklar Aumtdrtateorbul w. of uywprq Q rrdnmeW~th.rW(.thath.r.doped~fMUldCanpsnubooPL.nU aOuMed pbnud hnsa~@~~Wthu Dodanbocrd%uu. prod (m) QuJmed Plan A pian wonsod bya PukErnplcrysrla Ihs purpoea dprwrdtng remwnmt im to 6 anpbywswt~ch ubdiesmSqwlif+ won qui- d Secbon 401 d th 1- Rm coda .t meodbd (a) EIW@ (wthe Trustees rppanlbdb U WUIUOSPU! (n) RC. fha Ir&rmhod Cny Ma- h8ambcm Rebrmnt - hwsd. me 'burraes Lhdl k, dsasd by I vds d I M rdnn. Empicysnin.arrdancsvnthttwpocsdumaUtom, Section 3.1 Nwkr and QuetIfic8tiof1 of frudn (a) h Board dTNslsss riuls consul d IUIIOTNS~XS 3Utl be hr#m employees d I Pubkc EWoyer @ Trustees) who ue ruthonred by ruch Publc Emmer I The rwuuntnq kur fnatessrhll msi dtwo pe~nr Jsuontottw Board d TRllloes. am mbend the B lCMA 8d hvo pernw who, lb the w10 d &C!tOfl. Ue mC d hators d RC (lim ICMMK: Tnslsss) Ons dme hd d ICMA. ud me dttw TRldees who srdtrsctor dR d ebctm. be Wme unpbyam da Pubkc Em- @}NO psnOn rnry mU 8 TNma b WtUOthn m Ihoudmed~ &don 3.2 Ekth nd Ikm. 1 kqu(b.M-ofM.r.b-e ,skddbalrm, (I)-.nd- a ~~msymYQa~c * amma mlhrrr'hacses H tm dacaad br a(.m,dtwo wrs and mnr *. kswsU kJlct.dbra(mdmysu AI mch ubaoqqunl Jcbon. lbnrTus8ms3uPk~brr~d~~udvltJbahu m-humu-; kru dhr ptoQerty rscnd of rcqrnrsd by thorn rrfrurtearh wwhm of na wch Ytunbma mWrptccm7~ wdd ncmuny tmr @)came uy meudbesof aha propnty hdd as pan d th. hnr lp be nglsmod tnthe mdlh R.crmmml 'fur( of m Uu ryrry ~W~rrmrNanrybng~brth.pUbbc~ mand(OhdduryIrmctnwrt,akuwbrm, Mthe Wan dmr%uslees Ihn a dl brrm rhawmm rl uch 1-m (h)malca wcuwr-vd dJlW uyud J1 dowmell hr andcorrvsyrncsandany.ndUUtufWrumrcbtM my be Ordrrponvy~bondr,u-osartmr.QHOsnsnlaaca of pcum d.nany wth awttwutpomd tubudutron. amu~ -on pnnleger, ubunm ngha. u dh.~ wcnu ad mlu moms mmdunWth.rrr0.09poe4 of cormml P u ahcmrw p.1 capontersapr-of ah.cchngss~ngcapa;rtcrs ddqple dturdiomry pueq Jd p.v any - w Chlri m5o1-1 therm!h. vd 0enenNy~rsrow rry d tha pcwrs d an IWHCIO rtoda bordr. ~~~nlleru dh.r pcowwwa.tp.n %=v* 0 melrlnl0CwlW of rmngemsa kc pocdror~mQL -IDJC(.dMdpuJhd. hction3dhnirWow Thhdms*RIOnMbllWmrwkwcadW ~RI~ngconmclaJulchooc~(olpllbLctrglqr hrct.srinrrorduDIrrdh~pocdutrsU&thnth#BrLm WMhWOC kctkn t.4 kJonrtlon 8nd R.manl. . (.)kyXamomy mmgnmhrrtse (vntho~# mod fot prior uubrqunt arpptoQnmmunyaRtMPmeahnngRnud. mbyrnnrtrwrlinwntmg ogned ~the~ud~ bmealusbasudndremg~aha#bedbcb~~upor,*h#Illry. m .I r lrbr dds-ng tDthmt dth. irrtnarwnl Any dhm my bo nm0r.d #of tlul* by a W d a mrprlFl dth Pubkc Employnr (b) E.eh pubis Emprorw hrrba twr mstgn hbatm -on mham ~ubybyrd~hamuh&hehe~rhabkah.-bma~ daPuWEmpbysr -uHcr- fh(.m,ddhced.hfflserhnmMlsud Hcmm lhdl oecut inthe eml d the death. ~bslgnation. mnUd w cded impslenu of~i~topsrkmnthe dutmd WoMced a hntsr. In tha cauda vlcancy. me rsrmumng hrrsss shell rppam 8uch pmm athey mttnr drrm WI me .M (subpatothe lmutationr rd brth m hslchon). @J mw kc the unsxprd pocbon dthr (rrm dthr lurtsa wlhohmRvgrwdor~w~csased!obarburtw The.ppo~ch.ll be nudo by a mfien in&umem vgned by. rnapnly dthuTrulesr The FW son .pporuod mud bethe w rype d Rustee(i.e. PuUr EWw Ihk beor ICMNRCPdee) .rh pmon who hasceaaed lob &Mea An 8pprnNmed dahntsemsy be made ina&apWm dr vruncy(0ocan U8lreadabf1m~~?dR*ranentarssgnsbon,prwrdsdWrrrehm mmrhd ndtxrXmO~l*~m~ rshnmenltof~rubon wh.rt OWJ HUW mthenurneer dhugscs rha)loccur, uml uch mwms w.d as pC0rnd.d mthr sedron 35, the kusteer in dice Isgardksd hr nrmbw, rhn hua all thd puwm granted to ttw hrscsss ad shall CbDdUrge rlthsduhsrwnpcm?dupon the bust- byhr D.clmtton A wntttminrtrw mentumtpng th Dustenw de vpuncy mned by a rrupnty dm hcrt.ss 3u# bsconduv~ sndence d the sustance d wct, vacancy m 3.6 lhrrtwr S.m In ffcpmuntltfn C.p.cHy: By mng J&tsd by- Publr Emplmuc authcKlred tort as qp-dsad rsprswrr tlb~ dUm Putrrr Empkrysrrcdbdrdy ncbon wth (hr 0pCK.tron d h Rcdirmuwd M. indudfng M 14contrwtswRhcurto&.mudconlrutskrtheprrrnoon dac -. (k) bataw or NY~QYY &th purpocnd Um Retirement 1 atk pmndedthat Uu apar.gM ynqlrl darch barcrmngrrh. 30%dttm~urdUuMPropatyNopacm~ng~te -1 be bard to soothe appbtlon 0th muluy knb or lorn #IlcMy, - 01 pmpnaty d My rub banmng: 0 incur rsuonrbie mpmm as nqrnd krmC qmalion dltw Antuddeduc(rrchapenrerm~hrhrst, (m) pay ap.nret Pr0per)y doubktotha Rust property irwm bonwlmtMlklsnsdcan~onpL.n* OuJliiod~ns. an 'Tim8ddrdUCtruch -trOmtW mdtbkurr whantuchapanms.rr~yJlaubls. (n) p.yU d them PlopeltyJ1 ld Jd POfSOMI -E ~,mdUponrdr~mdcadrborq.rttW~3rJI lurss ad amCn bas duyud JT lvndr wkh. mthe wnon d d. Uu 'Tnrrt Propsrty ud I)IQcp16 uy UdrtMItoth. wpmw (0) wiopt. mend and remd mC Brlm provided Um arch a 31 m wnamtent mmhtho terms d thr Dcl.ntm d Tru (p) mproV pwxm (0 mrig MIW tm in me Ret~rer mplw Jiqbk to mumin J bred Ccm~lion PIan u 457 u I Wfid Plan under m 401 d Ihc Imerd Rsw unmded, (9) cousth A& Reporl dtho Rsbnment 'Ihnt. ad me 6s mam and dh.r hatura und by Uu Wrwn kurl. (0 nub loan* rnmluchng th. punh#ddsbl abligat10m pcr uch krm #all boar i*rrt a th cumtl mrrlrst ntr. Ihs Dsdrraban. rsch Publr Emplcysc aggrsssmme Puur E-lwmms rapmpwly~. he89wEaodund.r~ngUfLhrca~upan maE Iv. POmRs OF TRUSTEES ~4.1CknrnlFwen: ThekuasesWhvsthe~toardud ulebw~dthe~mdbC#fym~~ such pumw1nads kr 3u# nd k med 0. Ihe pollsrco: ~~*ttle~ PropsrtvtmmthepubhcEmpblsn PubkEln&w Tiw&m u ahor liuatoe d my Employ.c %u#, @) .nw tno~ a -rad Wlm an I- Actvnsr pw4w-g. moq ezhrr lhtnQa &lh@ establlslwnent rndopmtlorr d6w por(fdm dsdm ofme cirvnrwd lrrvssan~rl ContractsmrVhzh~M Ropectymy berwsld. (8) Cwlnct for, ad CbbQm uy porbn gnnted hnrundrr h ~d~~&tYM~W'd(hepymerld~ ~~~ad~a~~w~ b&i&es(OtMIrweszmmMwamUd10wysubnusrtmsnl.dwsr Wnd 1Mm'fvr(.erwnddd~~~~#Im~pur tJyltulfwwnuarllbnrtr; .nd (0) d ltvt Won 41 8d my nd ddeoltc aV Porrsn 1' (c)~eflndyl!utpsrkrruncedthalrrvbshnsrf~udrpproll. Lon wwld We their Aduauy CMIU. rmyly nr COntM *rrlh arch 1- Mbuef: (pprand.bIh.ndmnk.bandth.dlbrrmdmd (d)ndmd~mm.aaihMRapsrtynIhC:PomJa~thsI~ M.ndpnchoaWJ-rYnurv#. Cab.dirdnuy-lnssWrtrsorrmadsdbyth-w (u) muntvn bmk md mcds wWcbng spud. .~counbj brrrndlducsngrcurbaaPJedbyPrrbkEmplqaapwdsd1M~aPIlbLc Empiu,~. PublcE~~aEmploy.rMrnd~ Emprsn hasdmcmdt~~(rrorwr be imin cpkmed FmtcWa u8te.ccarncsuur,nqundund.c.Md~wRh th.1 maGuammod lrubsbrrmComa5.(h%AmsdthoRdrnmMhSWI ponutm or Qursmsd Phn of rch pubic Emgby.r, and mast rrch morrrsrm~bnce rvim luch chctmu: Q doan ruch .c(* mks JI ud, ywa+dmg* and wrum (0) bop such Pa(c0n dUw Ad Prop.*y #I cash of ash b.lrm a\h. ndpmnb0sh-ndw-h ~frombn~to(ana. rruydeantobomWwbe&inlnsr(dthsW* d.m ncarorryof rppropndetordrw~ theM nm(hr*cmamYtwetJy.wrthaR~bc --. dt)w -dUu R.llrmhat \ 6. L ~4.ZDlWfbUthlOfbmtPmpnty~ mdthehshJRo(, UmcLfVI.A"a 7RTTDSHAREHOLDfRS ~hrstssb8Ml annu&yrubmRtothePut*cEmploysnudPuMu - avdbm mpxl d Uutnma#msdfhe Mransnlhnt. wx3u rclbyIhe3vaae& 4 rctydlaEbamdeQorMbehnd,mePubl L. MorPubbcEmpbya -us* hrccardurcrmthth-d ah. Ds(snsd Compwt?abmplup '. khdymInmngpymenbin.ccordulcshtheclrabonrd ~hsPvbSe~~luamccraRaeeddthEmplcya ARIXLE VII. WRATION OR AMENDMENT OF RETIREMEN hrstrwWw!~rulgrrhs(tvuch~minan@anwwthIh promardIhDdensd-ar-Rur,Or(hrOrsanrb -~~~- kctkn7.1wHhdnwd: ARWcEn@qwaPubkEWP rt uyhnw. mthbmhan(hs~rawnlhfft by ddlMnng loth €ma Pubkc E~'Assastd &3mwwgetM Uu orty Jlocsbletoah. Pubk Emplqwbdenvsd from c0m-c byanployws drrch Publc E- prnuulto Ib Ds(etred C bon Plrn or tram cmtnbutca b (hr rcarrd8 d Ernployser pr ~Flan,~~~na&dthfi~~~~a - be transferred by the Meesdtho Rsclranenc hat or by dmeEmproysr'liurt &ctlon 7.2 Dum: The Rstcmnent kuo 0h.n conhnue untd bymwte damapntydthe Publlc Ern- sach mng om (Smum, JI dUW'lnn( Propscty shall be patd out lo106 Publlc Pub Emp(qac "scasr ormehsoe6 dthe Employee TNsb as 4 (kctlor, 7.3 AlnwhmL * Ths~~Mmybeabndec da mpnty d the Publlc Ern- each castrng me vo(s SKtlOn 7.4 Rncodun: A mdution totemnate or mnd the hrstorlo remcrv8aliusteeshalbeoubmmedtor~ dum Pubk mgned by not lass than 25% d Ihe Publc Emplu,em D wtn-r - c - CbbfidP(MI~~Employnhrd:ThhrdessdUWR~t~ranenthrdM aJ ~mrhftbe#rtmsdbylndependentprbkc.ccarl kctkn4d~dkUtnrmcmtr. -ThslVSttUBmYUMmady 'hfiaees8rmttenmdmthdd Inuch-. dssgnguyWOfmasdthe~~QrsaRs4nyvahrrrmor~ moll on bh4ff d JI, iducbng ka fa IWMed Dthe mQmg or mdusanM duyduckvd the mgnq duy w incum and o(h.ram tnd* vduurcbon dsuch dssonaiedMs or 'iiurtssr drsa h.H ah. w km ud dbu as fl bkm by dl ah.R&ms ARTW.E V. DUTY OF CARE AND UAblUTY OF TRUSTEES Secthi 5.1 Duty d Can: In emcmng tha pcmaro hereinbef0t-a grantad to h Woes 106 Pustees shall perbin dl acts mthrn hr aumonty ftx he &una pnposa d prwlding bensMsfwthe Pubkc Em- incoTvyc- bonwrlh ~edhpmsabonPhns8ndPubbc Emplayerkusteesprrsuanl moualw plrm and SMI pertorm archacts m thecars, MI, pmcmca and ddigencs in tho arcurnstances then prs~lling that a prudent psrson act- wrg in a hks mpmty and familiar mth such men warld uw in tJm conduct dm Wrpnae d a bka charadsr ud mM It& &ma s.ctlon 1.2 Wltty: The TNstessshaN nd behatdelormyrmsraksd pcip ment or &or rcttm taksn in good hth. and br any action trkm or anmsd n dlance in oood fwth upon the book d -nt or ether (bcorzk dthe Retir~lnnt, rrpontha opm d ccunsd, or upon rspocts made totha Rob- 'liurt by amy d Its dfrceo, anploybes or agbn!s or by the I-- msnt Mwm or any wbinvsshnent advtser. accountants appmters or dhm uxpartt or consuttam selected mth reasonable are tv the Trustees. dficsn orenpicyeesd the Ra(tremenI kutd lheTrugessshPUd~0notbeI&8kr my loss sustamed bythalnnt Property by rsasondanyinueshsrd msde ngood hvth md muadam wth lhe standard dcarssetlocth nS&barSl. ikctim S.3 Bod: No Trustee shall be obligated to QIM ary bond or ether recunty br the peficimanca d any d his w hef du(lss herwndec if (i) T@flly dm MOW SO dl-. Of: CHI WOCr WUM ARTICLE v11L YISCULANEoltS &don 8.1 Oovrming Lm: E%%@ as dhenwoa muired by i law, this Declaratm d &st and tha Retitanent liua hersby cm conrtrued and rsgulated by the Lwr d Ihe Rltnct d Cdumb 8rctkn 8.2 Counterpa- lhm Dedrraton may be executed t Emplcyers and TrusUm in two or mocs countsrp.rta each d wl deemed an ooqd butJ dwhrchtogetha rhllcaatnutconea malm. ** Approved by City Council, I on 4/26/88