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HomeMy WebLinkAbout1982-12-01; Municipal Water District; Resolution 432RESOLUTION NO. 432 RESOLUTION OF THE BOARD OF DIRECTORS OF COSTA REAL MUNICIPAL WATER DISTRICT ADOPTING AN EMPLOYEES' DEFERRED COMPENSATION PLAN AND AUTHORIZING THE EXECUTION OF AGREEMENTS RELATING TO SAID PLAN WHEREAS, the COSTA REAL MUNICIPAL WATER DISTRICT has in its employ employees who are and will be rendering valuable services to the District; and WHEREAS, said employees may desire to defer income until retirement for the purpose of deferring Federal and State Income Taxes on said income; and WHEREAS, the COSTA REAL MUNICIPAL WATER DISTRICT has con- sidered the establishment of a Deferred Compensation Plan for said employees, in accordance with Federal and State law and regulations, and believes that the adoption of said Plan will enhance the effi- ciency and morale of the employees and will be in the best interests of the District, NOW, THEREFORE, THE BOARD OF DIRECTORS OF COSTA REAL MUNI- CIPAL WATER DISTRICT DOES HEREBY RESOLVE AND ORDER AS FOLLOWS: T! 1. That the COSTA REAL MUNICIPAL WATER DISTRICT hereby establish and adopt for its employees the Deferred Compensation Plan, attached hereto as Exhibit "A", to be effective December 30, -1- 1982 and to remain in effect until terminated by further resolution. 2. That THOMAS L. BRAMMELL, Controller, is hereby ap- pointed to administer the Plan on behalf of the District and is au- thorized to execute Participation Agreements with eligible officers, officials and employees, and all other Documents and Agreements nec- essary to implement and administer the Plan. ADOPTED, SIGNED AND APPROVED this 1st day of December, 1982. 5z2-&kd. DONALD A. MacLEOD President of the Board of Directors Of COSTA REAL MUNICIPAL WATER DISTRICT ATTEST: the Board of Directors MUNICIPAL WATER DISTRICT -2- II STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ) SS. I, FRED W. MAERKLE, Secretary of the COSTA REAL MUNICIPAL WATER DISTRICT and of the Board of Directors thereof, do hereby certify that the foregoing Resolution was duly adopted by the Board of Directors of said District at a regular meeting of the Board held on the 1st day of December, 1982, and that it was adopted by the fol- lowing vote: AYES: Directors: ALMACK, BONAS, KELLY, MacLEOD and MAERKLE NOES : Directors: None ABSENT : Directors: None MAERKLE FRED W..d Secretary of t&/Board of Directors of COSTA REAL MUNICIPAL WATER DISTRICT -3- COSTA REAL MUNICIPAL WATER DISTRICT EMPLOYEES' DEFERRED COMPENSATION PLAN SECTION 1. t NAME: The name of this Plan is the COSTA REAL MUNICIPAL WATER DISTRICT - EMPLOYEES' DEFERRED COMPENSATION PLAN (hereinafter referred to as the "Plan"). # I* 1-1 SECTION 2. PURPOSE: The purpose of this Plan is to enable Employees of COSTA REAL MUNICIPAL WATER DISTRICT to defer portions of their compensation and to- provide retirement, disability and death benefits. SECTION 3. DEFINITIONS: .. For the purpose of this Plan, certain words or phrases used herein will have the following meanings: - 3.1 3.2 "Employer". means the Public Agency named in Section 1 hereinabove. "Employee" means any officer or employee of the Employer named in Section 1. 3.3 "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. / 3.4 "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 firm, or the estate of the Participant, or any combination of the foregoing desig- nated by a Participant to receive benefits under the Plan. nation shall be by written instrument executed by the Participant unless otherwise provided. primary or contingent. "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 Employee (if he were not a participant in the Plan) for actual services for the period that he is a Participant. "Payroll Period" means the work period for which a pay check is issued. Desig- Beneficiary may be singular or plural, 3.6 3.7 3.8 EXHIBIT "A" L5p. - - DEFERRED COMPENSATION PLAN 3.9 3.10 1 3.11 3.12 - 3.13 SECTION 4.1 "Includible Compensation" means compensation for services performed for Employer which is currently includible in oross 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). "Retirement1' means retirement from service with the Employer which becomes effective on the first day of the calendar month after Par- ticipant meets the age and service requirements for retirement (including "early'l or ''late" retirement) specified in the appl ic- able retirement policies of the Employer. "Deferred Compensation'' shall mean the amount of compensation not yet earned, which the Participant and COSTA REAL MUNICIPAL WATER DISTRICT mutually agree shall be deferred in accordance with the provisions of this Plan. "Disability" means the inability of a Participant to engage in his mutual occupation by reason of a medically determinable physical or mental impairment as determined by the Employer on the basis of advice from a physician or physicians. "Unforeseeable Emergency" shall mean a severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant or of a dependent of the Participant, loss of the Participant's property due to casualty, or other sim- ilar extraordinary and unforeseeable .circumstances arising as a result of events beyond the control of the Participant. Payment may not be made to the extent that such hardship is or may be re1 ieved (A) through reimbursement or compensation by insurance or otherwise, (B) by liquidation of the Participant's assets, to the extent the liquidation of such assets would not itself cause severe financial hardship, or (C) by cessation of deferrals under the plan. Examples of what are not considered to be unforeseeable emergencies include the need to send a Participant's child to college or the desire to purchase a home. Withdrawals of amounts because of an unforeseeable emergency must only be permitted to the extent reasonably needed to satisfy the emergency need. 4. PARTICIPATION IN THE PLAN 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. participate in the Plan shall become effective with respect to Compensation earned by the Participant during the calendar month next following the date of the Participant's election. election shall continue thereafter in full force and effect unless revoked by the Participant. An election to Such DEFERRED COMPENSATION PLAN 4.2 Each Participation Agreement shall specify the amount, by dollar amount or by percentage of gross compensation,, which is to be deferred pursuant to the Plan and to be withheld out of the Com- pensation otherwise payable to the Participant for each Payroll Period. The amount deferred each year may n.ot exceed the lesser of $7,500 or 33 1/3% of the Participant's Includible Compensation. Such deferred amounts shall be reasonably equal installments totaling not less than five dollars ($5.00) per Payroll Period. The annual minimum may be prorated during the inception year, or during a partial year for a new or newly eligible Employee, for full Payroll Periods remaining in the first calendar year of par- ti ci pat i on. Notwithstanding the.provisions of 4.2 herein, during any or all of the last three tax years ending before a Participant's normal retirement age, the maximum amount deferred annually shall be the lesser of $15,000 or the sum of the maximum 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 pursuant to the Plan. I 4.3 - 4.4 A Participant may revoke his election to participate in the Plan, and thereby terminate further deferral of his Compensation, by executing and filing with the Administrator a notice of revocation at least thirty (30) days prior to the effective date of revocation. A former Participant may not rejoin the Plan during the calendar month in which revocation occurred; however, he may elect to become a Participant for subsequent calendar months after a lapse of not less than three months. No amounts shall be payable to an Employee upon revocation of his participation in the Plan unless otherwise provided for in Section 7. .- 4.5 A Participant may change the amount of Compensation to be deferred in a subsequent calendar month by executing and filing notice with the Administrator at least thirty (30) days prior to the beginning of such month, provided, however, that such change may be made not more than four (4) times in a calendar year. 4.6 A Participant may designate in writing a Beneficiary to receive 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 the Administrator. DEFERRED COMPENSATION PLAN -- SECTION 5. DEFERRAL OF COMPENSATION 5.1 During the period of participation, the Employer shall not pay the Participant his full compensation, but shall defer payment of such part of his Compensation as the Participant has spec- ified in his Participation Agreement. establish in its records an Individual Deferred Compensation Account (IIIDC 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 all Participants under the P1 an. The Employer shall a . 5.2 Neither the existence of the Plan nor the IDC Accounts shall be deemed to create .a trust, and the Employer shall at all times be the legal and beneficial owner of all assets of said IDC Accounts. 5.3 Neither the existence of the Plan nor 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. shall have only the right to receive benefits pursuant to the P1 an. - The Participant and his beneficiary SECTION 6. ADMINISTRATION OF THE PLAN 6.1 The Plan shall be administered by the Administrator under the di- rection of the Employer. ployer, the Administrator may transmit amounts in the IDC Accounts to such investment plans as hereafter may be approved by the Employer. In regard to such investments, written agreements 'between the Employer and the institutions accepting funds for investment shall contain at least the following provisions: Acting for and in behalf of the Em- 6.1(a) Any investment of amounts in the IDC Accounts, in- cluding earnings on such amounts, shall be made ac- cording to written instructions of the Administrator. 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 certi- ficates, policies and other documents evidencing ownership of the amounts invested, and shall maintain records, including records of the IDC Account of each , Participant and the GDC Account. DEFERRED COMPENSATION PLAN c . 6.2 - 6.3 6.4 6.5 6.6 SECTION 6.l(c) No less frequently than quarterly, the Employer 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 the amounts shown in such reports shall be reflected in each Participant's IDC Account by the Empl oyer. No 1 ess frequently than quarterly, each Participant shall be furnished with a statement showing trans- actions, earnings and the current balance of the amounts invested from his IDC Account. 6.1 (d) 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. The Administrator shall record promptly and accurately all trans- actions pertaining to Participants' Deferred Compensation in their IDC Accounts, and Participant shall be entitled to know the balance in his IDC Account at least quarterly. The Employer shall have the sole authority to enforce the Plan and shall be responsible for its operation in accordance with its terms. , The Employer shall determine all questions arising out of the ad- ministration, interpretation and application of the Plan. All determinations shall be conclusive and binding. Prior to the time specified in the Plan for payment to Participant, each Participant shall elect the time, manner and (if applicable) the amount of benefits to be paid to him, or in the event of his death, to his Beneficiary under the Plan. payment may be made as a lump sum distribution. If no election is made, In the event that the Employer should purchase an annuity as a means of investment and distribution of funds in a Participant's IDC Account, the Employer shall be both the owner and the named Beneficiary of such annuity contract. 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 (60) days after notice to the Administrator of the oc- currence of the events or birthday described in Section 7 unless otherwise specifically provided in the Participation Agreement. All distributions shall be subject to any State or Federal taxes required to be withheld. Payment shall be made in accordance with the election made in the Participation Agreement, except in the event of Hardship described in Section 7.4. r DEFERRED COMPENSATION PLAN .-- Installment distributions shall be in approximately equal installments which shall be intended to exhaust the balance due Partjcipant or Bene- ficiary at the expiration of the term over which they will be made. installment amounts may be adjusted from time to time to take into consid- eration gains or losses, i.f any, from funds invested. Such Notwithstanding the foregoing, if any method elected by the Participant shall result in installment payments of less than $25, the Employer shall make payments on an annual basis aggregating installments otherwise due; or, if the balance due Participant or Beneficiary is less than $100, Em- ployer shall discharge its obligation by a lump sum payment. 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 Participant in any one or more of the following ways, as pre-elected at time of enrollment: 7.l(a) In a lump sum. - 7.l(b) In monthly, quarterly, or annual payments for a designated period of not less than one year and not more than the re- maining years of the Participant's life expectancy, de- termined by the Administrator in accordance with standard mortality tables recognized for that purpose. 7.l(c) Installment payments, equal to benefits which would be payable to Employer under and pursuant to terms of a re- tirement annuity policy or policies which may be purchased at the time of Participant's retirement, shall be paid to him in the event that Participant had pre-elected an annuity form providing for such payments. '7.l(d) In payments, under 7.l(a), 7.l(b) and 7.l(c) above, postponed by pre-election at time of enrollment until Participant reaches age 55. 7.2 OTHER TERMINATION: In the event of termination 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) 7.2(c) In monthly payments over a period not to exceed ten (10) years from date distribution begins. In payments, under 7.2(a) and 7.2(b) above, postponed by pre-election at time of enrollment until Participant reaches age 55. DEFERRED COMPENSATION PLAN 7.3 TOTAL PERMANENT DISABILITY: In the event of the total permanent disability of a Participant while he is an Empjoyee of the Employer, the.Employer shall pay to the Participant an amount equal to the balance of the Participant's IDC Account as of the month-end fol- lowing the Employer's determination of such disability, 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 an un- I foreseeable emergency event to be determined by the Employer in his sole discretion, the Employer may pay to the Participant all or any portion of the amount in such Participant's IDC Account as of the month-end following the date when such determination is made. As used herein, emergency event shall mean only a real emergency which has .occurred, which is or was beyond control of the Participant, and the occurrence of which has or would cause the Participant great financial hardship. The 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 revocation under Section 4.4 and no further deferral of Compensation will be made unless Participant subsequently re-elects to participate as provided in 4.4. 7.5 DEATH: In the event of death of any Participant, either before or after termination of employment, then the full benefits credited to his IDC Account shall be distributed to his Beneficiary in a manner described in Sections 7.l(a), 7.l(b) and 7.l(c) as pre- elected at time of enrollment. SECTION 8. MISCELLANEOUS 8.1 The contractual obligation of the Employer to the Participant es- tablished 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. 8.2 No Participant or other person shall have any legal or equitable right against the Employer except as provided in the Plan, and in no event shall the terms of employment of any Employee or Parti- cipant be modified or in any way affected thereby. Each Participant herein expressly agrees for himself and his Bene- ficiary 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. 8.3 DEFERRED COMPENSATION PLAN ; 8.4 The Plan has been adopted in the State of California and shall be construed and governed and administered in compliance with all appl i cab1 e State 1 aw. 8.5 Captions used in the Plan are for the purpose of convenience only, and shall not limit, restrict or enlarge the provisions of the P1 an. 8.6 The Plan shall be binding upon and shall inure to the benefit of the Employer, its successors and assigns, all Participants and Beneficiaries, and their heirs, and legal representatives. 8.7 As used in the Plan, the masculine or feminine or neuter gender, and the singular or plural number shall each be deemed to include the others unless the context clearly indicates otherwise. 8.8 Any notice or other,communication required or permitted under the Plan shall be in writing and, if directed to the Employer, shall be sent to the Administrator at his principal office; and, if di- rected 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 notice shall be deemed given when mailed. - 8.9 Deductions for Participant's contributions to retirement assoc- iations shall be made without reference to amounts deferred pur- suant to the Plan. 8.10 An approved leave of absence with pay shall not affect agreements to participate in the Plan. 8.11 An approved leave of absence without pay shall be considered to be a temporary suspension of participation in the Plan. shall be automatically reinstated as of the first day of the next Pay Period subsequent to the termination of such leave of absence status. Participation 8.12 The Employer shall make no loans or advances to the Participant 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, or the Employer may, without amending or terminating the Plan, cease to set aside assets under the Plan. No amendment or termination of the Plan, and no cessation of the setting aside of assets by the Employer shall reduce or impair the rights of any Participant or Beneficiary which may already have accrued. DEFERRED COMPENSATION PLAN -_ 9.1 If the Plan is terminated by the Employer, the Employer may elect to distribute, in the same manner to all Partisipants, amounts equal to the balance of their IDC Accounts as of the month-end following such termination. If Employer does not elect to pay accrued benefits on termi- nation of the Plan, he shall cease all deferrals of Compensation, but payments of benefits shall be made pursuant to the applicable provisions of Section 7 of the Plan and the irrevocable e,lection of the various Participation Agreements then in effect. 9.2 I -. r . , n