HomeMy WebLinkAbout2014-04-08; City Council; Resolution 2014-060EXHIBIT 1
1 RESOLUTION NO. 2014-060
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^ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
4 CAUFORNIA, ESTABUSHING A (DEFINED CONTRIBUTION) MONEY
PURCHASE RETIREMENT PLAN FOR THE CITY MANAGER
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WHEREAS, the City of Carlsbad (the "City") has a City Manager rendering valuable
services; and
WHEREAS, the establishment of a money purchase retirement plan benefits the City
1Q Manager by providing funds for retirement; and
11 WHEREAS, the City desires that its money purchase retirement plan be administered by
^2 ICMA-RC and that the funds held in such plan be invested in the Vantage Trust, a trust
established by public employers for the collective investment of funds held under their
retirement and deferred compensation plans.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
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1 y California, as follows
18 1. That the above recitations are true and correct
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23 attached hereto).
24 3. That the Plan shall be maintained for the exclusive benefit of the City Manager; and
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2. That the City hereby establishes a money purchase retirement plan (the "Plan") in
the form of The ICMA Retirement Corporation Governmental Money Purchase Plan &. Trust,
pursuant to the specific provisions ofthe Plan & Trust Adoption Agreement (executed copy
that the City hereby executes the Declaration of Trust of Vantage Trust, intending this
execution to be operative with respect to any retirement or deferred compensation plan
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Trust.
4. That the City hereby agrees to serve as trustee under the Plan and to invest funds
held under the Plan in the Vantage Trust; and
1 subsequently established by the City, if the assets of the plan are to be invested in the Vantage
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5 5. That the Human Resources Director shall be the coordinator for the Plan; shall
7 receive reports, notices, etc., from the ICMA Retirement Corporation or the Vantage Trust; shall
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cast, on behalf of the Employer, any required votes under the Vantage Trust; may delegate any
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administrative duties relating to the Plan to appropriate departments; and
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^ ^ 6. That the Human Resources Director is authorized to execute ali necessary
12 agreements with the ICMA Retirement Corporation incidental to the administration ofthe Plan
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PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City
of Carlsbad on the 8*^ day of April, 2014, by the following vote to wit:
AYES:
NOES:
Council Members Hall, Packard, Wood, Schumacher and Blackburn.
None.
ABSENT: None.
ATTEST:
.^SARftARA ENGLESON,(dty Clerk
EXHIBIT 3
ICMA RETIREMENT CORPORATION
GOVERNMENTAL MONEY PURCHASE PLAN & TRUST
ADOPTION AGREEMENT
PLAN NUMBER 10-7924
The Employer hereby establishes a Money Purchase Plan and Trust to be known as City of Carlsbad Money Purchase Plan
(the "Plan") in the form of the ICMA Retirement Corporation Governmental Money Purchase
Plan and Trust (MPP 01/01/06).
This Plan is an amendment and restatement of an existing defined contribution money purchase plan.
• Yes 21 No
If yes, please specify the name of the defined contribution money purchase plan which this Plan hereby amends and restates:
I. Employer: City of Carlsbad [902]
II. The Effective Date of the Plan shall be the first day of the Plan Year during which the Employer adopts the Plan,
unless an alternate Effective Date is hereby specified: April 14,2014 (e,g,^ January 1,
2006 for the MPP 01/01/06 Plan)
III. Plan Year will mean:
IZI The twelve (12) consecutive month period which coincides with the limitation year. (See Section 5.03(f) of the
Plan.)
The twelve (12) consecutive month period commencing on and each anniversary thereof
IV. Normal Retirement Age shall be age (not to exceed age 65). [288]
V. ELIGIBILITY REQUIREMENTS:
1. The following group or groups of Employees are eligible to participate in the Plan:
All Employees
All Full Time Employees
Salaried Employees
Non union Employees
Management Employees
Public Safety Employees
General Employees
2^ Other Employees (specify describe the group(s) of eligible
employees below)
City Manager
The group specified must correspond to a group of the same designation that is defined in the statutes,
ordinances, rules, regulations, personnel manuals or other material in effect in the state or locality of the
Employer. Also, the eligibility requirements for participation in the Plan cannot be such that Employees become
Participants only in the Plan Year in which the Employees terminate employment (i.e., stand-alone final pay
plans).
Money Purchase Plan Adoption Agreement
2. The Employer hereby waives or reduces the requirement of a twelve (12) month Period of Service for
participation. The required Period of Service shall be (write N/A if an Employee is eligible to participate
upon employment) N/A
If this waiver or reduction is elected, it shall apply to all Employees within the Covered Employment
Classification.
3. A minimum age requirement is hereby specified for eligibility to participate. The minimum age
requirement is N/A (not to exceed age 21. Write N/A if no minimum age is declared.)
VI. CONTRIBUTION PROVISIONS
1. The Employer shall contribute as follows: (Choose all that apply, but at least one of Options A, B or C. If
Option A is noi selected, Employer must pick up Participant Contributions under Option B or Option C.)
Fixed Employer Contributions With or Without Mandatory Participant Contributions. (If Option B
or C is chosen, please complete section D.)
|7| A. Employer Contributions. The Employer shall contribute on behalf of each Participant
% of Earnings or $ 27,000 for the Plan Year (subject to the limitations of Article V of
the Plan).
Mandatory Participant Contributions
are required 21 are not required
to be eligible for this Employer Contribution.
B. Mandatory Participant Contributions for Plan Participation. A Participant is required to
contribute (subject to the limitations of Article V of the Plan)
(i) % of Earnings,
(ii) $ , or
(iii) a whole percentage of Earnings between the range of (insert range of
percentages between 0% and20% (e.g., 3%, 6%, or 20%; 5% to 7%)), as designated by the
Employee in accordance with guidelines and procedures established by the Employer
for the Plan Year as a condition of participation in the Plan. A Participant shall not have the
right to discontinue or vary the rate of such contributions after becoming a Plan Participant.
The Employer hereby elects to "pick up" the Mandatory Participant Contributions '(pick up
is required if neither Option A nor Option C is selected).
• Yes • No
^ C. Mandatory Participant Contributions for this Portion of the Plan. Each Employee eligible
to participate in the Plan shall be given the opportunity to irrevocably elect to participate
in the Mandatory Participant Contribution portion of the Plan by electing to contribute
(insert range of percentages between 0% and 20% (e.g., 3%, 6%, or 20%;
5% to 7%)) of the Employee's Earnings to the Plan for each Plan Year (subject to the limitations
of Article V of the Plan).
[621]
' Neither an IRS advisory letter nor a determination letter issued to an adopting Employer is a ruling by the Internal Revenue Service that
Participant contributions that are picked up by the Employer are not includable in the Participant's gross income for federal income tax purposes.
Pick-up contributions are not mandated to receive private letter rulings; however, if an adopting employer wishes to receive a ruling on pick-up
contributions they may request one in accordance with Revenue Procedure 2011-4 (or subsequent guidance).
Money Purchase Plan Adoption y^reement 2
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A Participant shall not have the right to discontinue or vary the rate of such contributions after
becoming a Participant in this portion of the Plan.
The Employer hereby elects to "pick up" the Mandatory Participant Contributions (pick up is
required if neither Option A nor Option B is selected).^ [621]
days (no more than
• Yes • No
D. Electipn Window (Complete if Option B or Option C is selected):
Newly eligible Employees shall be provided an election window of
60 calendar days) from the date of initial eligibility during which they may make the election to
participate in the Mandatory Participant Contribution portion of the Plan. Participation in the
Mandatory Participant Contribution portion of the Plan shall begin the first of the month following
the end of the election window.
An Employee's election is irrevocable and shall remain in force until the Employee terminates
employment or ceases to be eligible to participate in the Plan. In the event of re-employment to an
eligible position, the Employee's original election will resume. In no event does the Employee have
the option of receiving the pick-up contribution amount directly.
2. The Employee may also elect to contribute as follows:
O A. Fixed Employer Match of Voluntary Participant Contributions. The Employer shall contribute on
behalf of each Participant % of Earnings for the Plan Year (subject to the limitations of Article
V of the Plan) for each Plan Year that such Participant has contributed % of Earnings or
$ . Under this option, there is a single, fixed rate of Employer contributions, but
a Participant may decline to make the required Participant contributions in any Plan Year, in which
case no Employer contribution will be made on the Participant's behalf in that Plan Year.
C3 B. Variable Employer Match of Voluntary Participant Contributions. The Employer shall contribute on
behalf of each Participant an amount determined as follows (subject to the limitations of Article V of
the Plan):
% of the Voluntary Participant Contributions made by the Participant for the Plan Year (not
including Participant contributions exceeding % of Earnings or $ );
PLUS % of the contributions made by the Participant for the Plan Year in excess of those
included in the above paragraph (but not including Voluntary Participant Contributions exceeding in
the aggregate % of Earnings or $ ).
Employer Matching Contributions on behalf of a Participant for a Plan Year shall not exceed
$ or % of Earnings, whichever is more or less.
3. Each Participant may make a voluntary (unmatched), after tax contribution, subject to the limitations of
Section 4.05 and Article V of the Plan.
• Yes l3 No
4. Employer contributions for a Plan Year shall be contributed to the Trust in accordance with the following
payment schedule (no later than the 15th day of the tenth calendar month following the end of the calendar
year or fiscal year (as applicable depending on the basis on which the Employer keeps its books) with or within
which the particular Limitation year ends, or in accordance with applicable law):
See footnote 1 on the previous page.
Money Purchase Plan Adoption Agreement
S6>
5. Participant contributions for a Plan Year shall be contributed to the Trust in accordance with the following
payment schedule (no later than the 15th day of the tenth calendar month following the end of the calendar year
or fiscal year (as applicable depending on the basis on which the Employer keeps its books) with or within which
the particular Limitation year ends, or in accordance with applicable law):
VII. EARNINGS
Earnings, as defined under Section 2.09 of the Plan, shall include:
(a) Overtime
• Yes |7) No
(b) Bonuses
• Yes [7) No
(c) Other Pay (specifically describe any other types of pay to be included below)
VIII. The Employer will permit rollover contributions in accordance with Section 4.11 of the Plan.
l3 Yes • No
IX. LIMITATION ON ALLOCATIONS
If the Employer maintains or ever maintained another qualified plan in which any Participant in this Plan is (or was) a
participant or could possibly become a participant, the Employer hereby agrees to limit contributions to all such plans
as provided herein, if necessary in order to avoid excess contributions (as described in Sections 5.02 of the Plan).
1. If the Participant is covered under another qualified defined contribution plan maintained by the Employer, the
provisions of Section 5.02(a) through (0 of the Plan will apply unless another method has been indicated below.
Other Method. (Provide the method under which the plans will limit total Annual Additions to the
Maximum Permissible Amount, and will properly reduce any excess amounts, in a manner that precludes
Employer discretion.)
2. The limitation year is the following 12 consecutive month period:
Money Purchase Plan Adoption Agreement 4
5"?
X. VESTING PROVISIONS
XI.
XII.
XIII.
XIV.
The Employer hereby specifies the following vesting schedule, subject to (1) the minimum vesting requirements and
(2) the concurrence of the Plan Administrator. (For the blanks below, enter the applicable percent - from 0 to 100
(with no entry after the year in which 100% is entered), in ascending order.)
Period of Service
Completed
Zero
One
Two
Three
Four
Five
Six
Seven
Eight
Nine
Ten
Percent
Vested
100
.%
.%
.%
.%
.%
.%
.%
.%
.%
.%
%
Loans are permitted under the Plan, as provided in Article XIII of the Plan:
• Yes 0 No
1. In-service distributions are permitted under the Plan after a participant attains (select one of the below
options):
[3 Normal Retirement Age
• Age 701/2
^ Not permitted at any age
2. Tax-free distributions of up to $3,000 for the payment of qualifying insurance premiums for eligible
retired public safety officers are available under the Plan.
• Yes • No (Default)
In-service distributions of the Rollover Account are permitted under the Plan as provided in Section 9.07.
13 Yes • No (Default)
SPOUSAL PROTECTION
The Plan will provide the following level of spousal protection (select one):
A. O Participant Directed Election. The normal form of payment of benefits under the Plan is a lump sum.
The Participant can name any person(s) as the Beneficiary of the Plan, with no spousal consent required.
B. 21 Beneficiary Spousal Consent Election (Article XII). The normal form of payment of benefits under
the Plan is a lump sum. Upon death, the surviving spouse is the Beneficiary, unless he or she consents to
the Participant's naming another Beneficiary. (This is the default provision under the Plan if no selection
is made.)
C. (3 QJSA Election (Article XVII). The normal form of payment of benefits under the Plan is a 50% qualified
joint and survivor annuity with the spouse (or life annuity, if single). In the event of the Participant's
death prior to commencing payments, the spouse will receive an annuity for his or her lifetime.
[751]
[646:8]
[646:3]
[646:7]
[646:6]
[646:6]
[642:8]
[646:6]
Money Purchase Plan Adoption Agreement
XV. FINAL PAY CONTRIBUTIONS
The Plan will provide for Final Pay Contributions if either 1 or 2 below is selected.
Final Pay shall be defined as (select one):
A. O Accrued unpaid vacation
B. (3 Accrued unpaid sick leave
C. d Accrued unpaid vacation and sick leave
D. C} Other (insert definition of final pay):
that would otherwise be payable to the Employee in cash upon termination.
1. id Employer Final Pay Contribution. The Employer shall contribute on behalf of each Participant
% of Final Pay to the Plan (subject to the limitations of Article V of the Plan).
2. d Employee Designated Final Pay Contribution. Each Employee eligible to participate in the Plan shall be
given the opportunity at enrollment to irrevocably elect to contribute % (insert fixed percentage of final
pay to be contributed) or up to % (insert maximum percentage of final pay to be contributed) of
Final Pay to the Plan (subject to the limitations of Article V of the Plan).
Once elected, an Employee's election shall remain in force and may not be revised or revoked. If the employer
elects to "pick up" these amounts, in no event does the Employee have the option of receiving the pick-up
contribution amount directly.
The Employer hereby elects to "pick up" the Employee Designated Final Pay Contribution thereby treating
such contributions as Employer-made contributions for federal income tax purposes.
• Yes • No [621]
XVI. ACCRUED LEAVE CONTRIBUTIONS
The Plan will provide for accrued unpaid leave contributions if either 1 or 2 is selected below.
Accrued Leave shall be defined as (select one):
A. •
B. •
C. •
D. •
1. •
that would otherwise be payable to the Employee in cash.
following options):
d For each Plan Year, the Employer shall contribute on behalf of each Eligible Participant the unused
Accrued Leave in excess of (insert number of hours/days/weeks) to the Plan (subject to the
limitations of Article V of the Plan).
(3 For each Plan Year, the Employer shall contribute on behalf of each Eligible Participant % of
unused Accrued Leave to the Plan (subject to the limitations of Article V of the Plan).
Money Purchase Plan Adoption Agreement
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3 2. Employee Designated Accrued Leave Contribution.
Each eligible Participant shall be given the opportunity at enrollment to irrevocably elect to contribute
% (insert fixed percentage of accrued unpaid leave to be contributed) or up to % (insert
maximum percentage of accrued unpaid leave to be contributed) of Accrued Leave to the Plan (subject to the
limitations of Article V of the Plan).
Once elected, an Employee's election shall remain in force and may not be revised or revoked. If the employer
elects to "pick up" these amounts, in no event does the Employee have the option of receiving the pick-up
contribution amount directly.
The Employer hereby elects to "pick up" the Employee Designated Final Pay Contribution thereby treating
such contributions as Employer-made contributions for federal income tax purposes.
• Yes • No [621]
In order to allow for Final Pay Contributions and/or Accrued Leave Contributions, as defined in sections XV and XVI
above, the Plan must also include additional sources of ongoing contributions, such as Fixed Employer Contributions
or Mandatory Participant Contributions. In accordance with IRS Guidance, ICMA-RC will not process Final Pay
Contribution or Accrued Leave Contribution Features as part of a "Stand Alone" Final Pay Plan.
XVII. The Employer hereby attests that it is a unit of state or local government or an agency or instrumentality of one or more
units of state or local government.
XVIII. The Plan Administrator hereby agrees to inform the Employer of any amendments to the Plan made pursuant to
Section 14.05 of the Plan or of the discontinuance or abandonment of the Plan.
XIX. The Employer hereby appoints the ICMA Retirement Corporation as the Plan Administrator pursuant to the terms
and conditions ofthe ICMA RETIREMENT CORPORATION GOVERNMENTAL MONEY PURCHASE
PLAN & TRUST.
XX.
The Employer hereby agrees to the provisions of the Plan and Trust.
The Employer hereby acknowledges it understands that failure to properly fill out this Adoption Agreement may result
in disqualification of the Plan.
XXI. An adopting Employer may rely on an advisory letter issued by the Internal Revenue Service as evidence that tlie
Plan is qualified under section 401 of the Internal Revenue Code to the extent provided in applicable IRS revenue
procedures and other official guidance.
In Witness Whereof, the Employer hereby causes this Agreement to be executed on this day of
March , 20 ""l
EMPLOYER
Print Name: Julie Clark
Title: Human Resources Director
ICMA RETIREMENT CORPORATION
777 North Capitol St., NE
Washington, DC 20002-4240
202-962-8096
By:,
Print Name:
Title:
Attest: Donna Hernandez Attest:
AS TO FORM
PAULG. EDMONSON
Assistant City Attomey
CiW of Carisbad
Money Purchase Plan Adoption Agreement