HomeMy WebLinkAbout1997 02 24 Regular Item C
COMMISSION AGENDA
ITEM C
REGULAR X
CONSENT
INFORMATIONAL
February 24. 1997
Meeting
MAR i?~ /DEPT
Authorization
REQUEST: City Manager requesting the Commission to consider adopting Resolution No. 814
making the International City Management Retirement Trust 457 Deferred
Compensation Investment Alternatives available to City employees.
PURPOSE: The purpose of this Agenda Item is to provide employees with more 457 Deferred
Compensation investment alternatives.
CONSIDERA TIONS:
Public Employee Benefit Services Corporation (PEBSCO) and the International City
Management Association Retirement Corporation (I.C.M.A.R.C.) are the two most
popular pension administrator's geared to public employees.
Currently the City has authorized PEBSCO to be available to employees.
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The inclusion of the investment alternatives ~ffered by I.C.M.A. will provide
employees with investment alternatives not available through PEBSCO.
Attached is a letter from Tom Allen of Allen, Lang, Morrison & Curotto stating that
the addition of I.C.M.A. 457 Deferred Compensation Alternatives will have no
detrimental effect on the City Pension Plan. .
FUNDING:
There is no cost to the City to provide this benefit to employees.
RECOMMENDATION:
The City Commission adopt Resolution No. 814, providing 457 Deferred
Compensation Investment Alternatives ofI.C.M.A. Retirement Corporation to City
employees.
Page 1
ATTACHMENTS:
1) Attorney (Tom Allen) Opinion Letter of January 31, 1997.
2) Authorizing Resolution.
3) Appendix "A" Deferred Compensation Plan Document.
4) Appendix "B" Declaration ofI.C.M.A. Retirement Trust.
5) Administrative Agreement.
COMMISSION ACTION:
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Page 2
ATTACHMENT "1"
ATTORNEY OPUOON LETTER
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Page 3
ALLEN, LANG, HORRISON & CUROTTO. P.A.
ATTORNEYS AT LAW
105 EAST ROBINSON STREET. SUITE 201
ORLANDO. F'LORIDA 32801-1655
POST OF'F'ICE BOX 3628
ORLANDO. F'LORIDA 32802-3628
TE:LE:PHONE: (407) 422-8250
F'AX (407) 422-8262
January 31, 1997
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~E8 0 3 1997
Mr. Ron McLemore, City Manager
City of Winter Springs
1126 East State Road 434
Winter Springs, FL 32708
CITY OF WINTER SPRINGS
City Managei
Re: 457 Plan
Dear Mr. McLemore:
Per your request, this is to advise that the utilization ofICMA as an additional investment
source for the City of Winter Springs employees' 457 Plan will not adversely affect the City's Money
Purchase Pension Plan.
Thomas R. Allen
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TRA/ab
A IT ACHMENT "2"
ENACTING RESOLUTION
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Page 4
RESOLUTION NO. 814
A RESOLUTION OF THE WINTER SPRINGS, FLORIDA
CITY COMMISSION (EMPLOYER) PROVIDING
VOLUNTARY RETIREMENT BENEFITS TO CITY EMPLOYEES
THROUGH THE INTERNATIONAL CITY MANAGEMENT
ASSOCIA TION RETIREMENT CORPORATION 457
DEFERRED COMPENSATION PLAN
WHEREAS, the Employer has employees rendering valuable services; and
WHEREAS, the establishment of a deferred compensation plan for such
employees serves the interests of the Employer 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 a competent personnel; and
WHEREAS, the Employer has determined that the establishment of a deferred
compensation plan to be administered by the ICMA Retirement Corporation
serves the above objectives; and
WHEREAS, the Employer desires that its deferred compensation plan be
administered by the ICMA Retirement Corporation, and that the funds held under
such plan be invested in the ICMA Retirement 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 that the Employer hereby adopts the
deferred compensation plan (the "Plan") in the form of the ICMA Retirement
Corporation Deferred Compensation Plan, referred to as Appendix A;
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BE IT FURTHER RESOLVED that the Employer hereby executes the
Declaration of Trust of the ICMA Retirement Trust, attached hereto as Appendix
B, intending this execution to be operative with respect to any retirement or
deferred compensation plan subsequently established by th~ Employer, if the
assets of the plan are to be invested in the ICMA Retirement Trust.
BE IT FURTHER RESOLVED that the City Manager shall be the coordinator
for this program; shall receive necessary reports, notices, etc. from the ICMA
Retirement Corporation or the ICMA Retirement Trust; shall cast, on behalf of
the Employer, any required votes under the ICMA Retirement Trust;
Administrative duties to carry out the plan may be assigned to the appropriate
departments, and is authorized to execute all necessary agreements with ICMA
Retirement Corporation incidental to the administration of the plan.
PASSED AND ADOPTED this _day of , 19_ In
Chambers at Winter Springs, Seminole County, Florida.
MA YOR, CITY OF WINTER SPRINGS
FLORIDA
ATTEST:
CITY CLERK
..;
ATTACHMENT "3"
APPENDIX "A"
DEFERRED COMPENSATION PLAN
DOCUMENT
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DEFERRED COMPENSATION
PLAN DOCUMENT
Article I. Introduction
The Employer hereby establishes the Employer's Deferred
Compensation Plan, hereafter referred to as the "Plan." The
Plan consists of the provisions set forth in this document.
The primary purpose of this Plan is to provide retirement
income and other deferred benefits to the Employees of the
Employer in accordance with the provisions of Section 457 of
the Internal Revenue Code of 1986, as amended (the
"Code").
This Plan shall be an agreement solely between the
Employer and participating Employees.
Article II. Definitions
2.01 Account: The bookkeeping account maintained for each
Participant reflecting the cumulative amount of the
Participant's Deferred Compensation, including any income,
gains, losses, or increases or decreases in market value
attributable to the Employer's investment of the Participant's
Deferred Compensation, and further reflecting any
distributions to the Participant or the Participant's Beneficiary
and any fees or expenses charged against such Participant's
Deferred Compensation.
2.02 Administrator: The person or persons named to carry
out certain nondiscretionary administrative functions under the
Plan, as hereinafter described. The Employer may remove any
person as Administrator upon 60 days' advance notice in
writing to such person, in which case the Employer shall name
another person or persons to act as Administrator. The
Administrator may resign upon 60 days' advance notice in
writing to the Employer, in which case the Employer shall
name another person or persons to act as Administrator.
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.2.03 Beneficiary: The person or persons designated by the
Participant in his Joinder Agreement who shall receive any
benefits payable hereunder in the event of the Participant's
death. In the event that the Participant names two or more
Beneficiaries, each Beneficiary shall be entitled to equal shares
of the benefits payable at the Participant's death, unless
otherwise provided in the Participant's Joinder Agreement. If
no beneficiary is designated in the Joinder Agreement, if the
Designated Beneficiary predeceases the Participant, or if the
designated Beneficiary does not survive the Participant for a
period of fifreen (15) days, then the estate of the Participant
shall be the Beneficiary.
2,04 Deferred Compensation: The amount of Normal
Compensation otherwise payable to the Participant which the
Participant and the Employer mutually agree to defer
hereunder, any amount credited to a Participant's Account by
reason of a transfer under section 6.03, or any other amount
which the Employer agrees to credit to a Participant's
Account.
2.05 Employee: Any individual who provides services for the
Employer, whether as an employee of the Employer or as an
independent contractor, and who has been designated by the
Employer as eligible to participate in the Plan.
2,06 Includible Compensation: The amount of an
Employee's compensation from the Employer for a ta."(able
year that is attributable to services performed for the Employer
and that is includible in the Employee's gross income for the
taxable year for federal income tax purposes; such term does
not include any amount excludable from gross income under
this Plan or any other plan described in Section 457(b) of the
Code or any other amount excludable from gross income for
federal income ta."( purposes. Includible Compensation shall be
determined without regard to any community property laws.
2.07 Joinder Agreement: An agreement entered into
between an Employee and the Employer, including any
amendments or modifications thereof Such agreement shall fix
the amount of Deferred Compensation, specify a preference
among the investment alternatives designated by the Employer,
designate the Employee's Beneficiary or Beneficiaries, and
incorporate the terms, conditions, and provisions of the Plan
by reference.
2.08 Normal Compensation: The amount of compensation
which would be payable to a Participant by the Employer for a
taxable year if no Joinder Agreement were in effect to defer
compensation under this Plan.
2,09 Normal Retirement Age: Age 70-1/2, unless the
Participant has elected an alternate Normal Retirement Age by
written instrument delivered t'O the Administrator prior to
Separation from Service. A Participant's Normal Retirement
Age determines the period during which a Participant may
utilize the catch-up limitation of Section 5.02 hereunder.
Once a Participant has to any extent utilized the catch-up
limitation of Section 5.02, his Normal Retirement Age may
not be changed.
A Participant's alternate Normal Retirement Age may not
be earlier than the earliest date that the Participant will become
eligible to retire and receive unreduced retirement benefits
under the Employer's basic retirement plan covering the
Participant and may not be later than the date the Participant
will attain age 70-1/2. If a Participant continues employment
............................................................................................................ .
rCMA RETIRU.IENT CORPORATION
after attaining age 70-1/2, not having previously elected
alternate Normal Retirement Age, the Participant's alternate
Normal Retirement Age shall not be later than the mandatory
retirement age, if any, established by the Employer, or the age
at which the Participant actually separates from service if the
Employer has no mandatory retirement age. If the Participant
will not become eligible to receive benefits under a basic
retirement plan maintained by the Employer, the Participant's
alternate Normal Retirement Age may not be earlier than age
55 and may not be later than age 70-1/2.
2.10 Participant: Any Employee who has joined the Plan
pursuant to the requirements of Article IV.
2,11 Plan Year: The calendar year.
2.12 Retirement: The first date upon which both of the
following shall have occurred with respect to a participant:
Separation from Service and attainment of age 65.
2.13 Separation From Service: Severance of the
Participant's employment with the Employer which constitutes
a "separation form service" with the meaning of Section
402(d)(4)(A)(iii) of the Code. In general, a Participant shall be
deemed to have severed his employment with the Employer
for purposes of this Plan when, in accordance with the
established practices of the Employer, the employment
relationship is considered to have actually terminated. In the
case of a Participant who is an independent contractor of the
Employer, Separation from Service shall be deemed to have
occurred when the Participant's contract under which services
are performed has completely expired and terminated, there is
no foreseeable possibility that the Employer will renew the
contract or enter into a new contract for the Participant's
services, and is not anticipated that the Participant will become
i~ Employee of the Employer.
Article III. Administration
3,01 Duties of the Employer: The Employer shall have the
authority to make all discretionary decisions affecting the rights
or benefits of Participants which may be required in the
administration of this Plan.
3.02 Duties of Administrator: The Administrator, as agent
for the Employer, shall perform nondiscretionary
administrative functions in connection with the Plan, including
the maintenance of Participants' Accounts, the provision of
periodic reports of the status of each Account, and the
disbursement of benefits on behalf of the Employer in
accordance with the provisions of this Plan.
Article IV. Participation in the Plan
4.01 Initial Participation: An Employee may become a
Participant by entering into a Joinder Agreement prior to the
beginning of the calendar month in which the Joinder
Agreement is to become effective to defer compensation not
yet earned.
4.02 Amendment of Joinder Agreement: A Participant
may amend an executed Joinder Agreement to change the
amount of compensation not yet earned which is to be
deferred (including the reduction of such future deferrals to
zero) or to change his investment preference (subject to such
restrictions as may result from the nature of terms of any
investment made by the Employer). Such amendment shall
become effective as of the beginning of the calendar month
commencing after the date the amendment is executed. A
Participant may at any time amend his Joinder Agreement to
change the designated Beneficiary, and such amendment shall
become effective immediately.
Article V. Limitations on Deferrals
5.01 Normal Limitation: Except as provided in section 5.02,
the maximum amount of Deferred Compensation for any
Participant for any taxable year shall not exceed the lesser of
$7,500.00 or 33-1/3 percent of the Participant's Includible
Compensation for the ta..xable year. This limitation will
ordinarily be equivalent to the lesser of$7,500.00 or 25
percent of the Participant's Normal Compensation.
5.02 Catch-Up Limitation: For each of the last three (3)
ta..xable years of a Participant ending before his attainment of
Normal Retirement Age, the maximum amount of Deferred
Compensation shall be the lesser of: (1) $15,000 or (2) the sum
of (i) the Normal J;.imitation for the taxable year, and (ii) the
Normal Limitation for each prior taxable year of the
Participant commencing after 1978 less the amount of the
Participant's Deferred Compensation for such prior taxable
years. A prior taxable year shall be taken into account under
the preceding sentence only if'(i) the Participant was eligible to
participate in the Plan for such'year (or in any other eligible
deferred compensation plan established under Section 457 of
the Code which is properly taken into account pursuant to
regulations under section 457), and (ii) compensation (if any)
deferred under the Plan (or such other plan) was subject to the
deferral limitations set forth in Section 5.01
5.03 Other Plans: The amount excludable from a
Participant's gross income under this Plan or any other eligible
deferred compensation plan under section 457 of the Code
shall not exceed $7,500.00 (or such greater amount allowed
under Section 5.02 of the Plan), less any amount excluded
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from gross income under section 403(b), 402(a)(8), or
402(h)(1)(B) of the Code, or any amount with respect to
which a deduction is allowable by reason of a contribution to
an organization described in section 501(c)(18) of the Code.
Article VI. Investments and Account Values
6.01 Investment of Deferred Compensation: All
investments of Participant's Deferred Compensation made by
the Employer, including all property and rights purchased with
such amounts and all income attributable thereto, shall be the
sole properry of the Employer and shall not be held in trust for
Participants or as collateral security for the fulfillment of the
Employer's obligations under the Plan. Such properry shall be
subject to the claims of general creditors of the Employer, and
no Participant or Beneficiary shall have any vested interest or
secured or preferred position with respect to such pro perry or
have any claim against the Employer except as a general
creditor.
6.02 Crediting of Accounts: The Participant's Account shall
reflect the amount and value of the investments or other
properry obtained by the Employer through the investment of
the Panicipant's Deferred Compensation. It is anticipated that
the Employer's investments with respect to a Participant will
conform to the investment preterence specified in the
Participant's Joinder Agreement, but nothing herein shall be
construed to require the Employer to make any particular
investment of a Participant's Deferred Compensation. Each
Participant shall receive periodic repons, not less frequently
than annually, showing the then current value of his Account.
6.03 Transfers:
(a) Incoming Transfers: A rransfer may be accepted from
an eligible deferred compensation plan maintained by another
employer and credited to a Participant's Account under the
Plan if (i) the Participant has separated from service with that
. -employer and become an Employee of the Employer, and (ii)
the other employer's plan provides that such transfer will be'
made. The Employer may require such documentation from
the predecessor plan as it deems necessary to effectuate the
transfer, to confirm that such plan is an eligible deft!rred
compensation plan within the meaning of Section 457 of the
Code, and to assure that transfers are provided for under such
plan. The Employer may refuse to accept a transfer in the form
of assets other than cash, unless the Employer and the
Adminisrrator agree to hold such other assets under the Plan.
Any such transferred amount shall be treated as a deferral
subject to the limitations of Article V, except that, for purposes
of applying the limitations of Sections 5.01 and 5.02, an
amount deferred during any ta."(able year under the plan from
which the transfer is accepted shall be treated as if it has been
deferred under this Plan during such taxable year and
compensation paid by the transferor employer shall be treated
as if it had been paid by the Employer.
(b) Outgoing Transfers: An amount may be transferred to
an eligible deferred compensation plan maintained by another
employer, and charged to a Participant's Account under this
Plan, if (i) the Participant has separated from service with the
Employer and become an employee of the other employer, (ii)
the other employer's plan provides that such transfer will be
accepted, and (iii) the Participant and the employers have
signed such agreements as are necessary to assure that the
Employer's liability to pay benefits to the Participant has been
discharged and assumed by the other employer. The Employer
may require such documentation from the other plan as it
deems necessary to effectuate the transfer, to confirm that such
plan is an eligible deferred compensation plan within the
meaning of section 457 of the Code, and to assure that
transfers are provided for under such plan. Such transfers shall
be made only under such circumstances as are permitted under
section 457 of the Code and the regulations thereunder.
6,04 Employer Liability: In no event shall the Employer's
liability to pay benefits to a Participant under Article VI exceed
the value of the amounts credited to the Participant's Account;
the Employer shall not be liable for losses arising from
depreciation or shrinkage in the value of any investments
acquired under this Plan.
Article VII. Benefits
7.01 Retirement Benefits and Election on Separation
from Service: Except as otherwise provided in this Article
VII, the distribution of a Panicipant's Account shall commence
as of April 1 of the calendar year after the Plan Year of the
Participant's Retirement, and the distribution of such
Retirement benefits shall be made in accordance with one of
the payment opti'ons described in Section 7.02.
Notwithstanding the foregoing, the Participant may
irrevocably elect within 60 days following Separation from
Service to have the distributio'n of benefits commence on a
fixed determinable date other than that described in the
preceding sentence which is at least 61 days after Separation
from Service, but not later than April 1 of the year following
the year of the Participant's Retirement or attainment of age
70-112, whichever is later.
7,02 Payment Options: As provided in Sections 7.01, 7.04
and 7.05, a Participant or Beneficiary may elect to have value
of the Participant's Account distributed in accordance with one
of the following payment options, provided that such option is
consistent with the limitations set fonh in Section 7.03.
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(a) Equal montWy, quarterly, semi-annual or annual
payments in an amount chosen by the Participant, continuing
until his Account is exhausted;
(b) One lump-sum payment;
(c) Approximately equal monthly, quarterly, semi-annual
or annual payments, calculated to continue for a period certain
chosen by the Participant.
(d) Annual Payments equal to the minimum distributions
required under Section 401 (a) (9) of the Code over the life
expectancy of the Participant or over the life expectancies of
the Participant and his Beneficiary.
(e) Payments equal to payments made by the issuer of a
retirement annuity policy acquired by the Employer.
(f) A split distribution under which payments under
options (a), (b), (c) or (e) commence or are made at the same
time, as elected by the Participant under Section 7.01, .
provided that all payments commence (or are made) by.the
latest benefit commencement date under Section 7.01 and that
once a payment is made subsequent payments will be made in
substantially nonincreasing amounts.
(g) Any payment option elected by the Participant and
agreed to by the Employer and Administrator, provided that
such option must provide for substantially nonincreasing
payments for any period atter the benefit commencement date
under Section 7.01.
A Participant's or Beneficiary's selection of a payment
option made after December 31,1995, under Subsections (a),
(c), or (g) above may include the selection of an automatic
annual cost-of-living increase. Such increase will be based on
the rise in the Consumer Price Index for All Urban Consumers
(CPI-V) from the third quarter of the last year in which a cost-
of-living increase was provided to the third quarter of the
current year. Any increase will be made in periodic payment
checks beginning the following January. The first cost-of-
living increase will be based on the rise in the CPI-U from the
thil'O quarter of 1995 to the third quarter of 1996, and will be
applied to amounts paid beginning January 1997.
A Participant's or Beneficiary's election of a payment
option must be made at least 30 days before the payment of
benefits is to commence. If a Participant or Beneficiary fails to
make a timely election of a payment option, benefits shall be
paid monthly under option (c) above for a period of five years
\vithout the inclusion of a cost-of-living increase.
7.03 Limitation on Options: No payment option may be
selected by a Participant or Beneficiary under Sections 7.02,
7.04, or 7.05 unless it satisfies the requirements of Sections
401(a)(9) and 457(d)(2) of the Code, including that payments
commencing before the death of the Participant shall satisfy the
incidental death benefits requirement under section
457(d)(2)(B)(i)(l). A cost-of-living increase included as part of
a payment option selected under Section 7.02 shall not be
considered to fail to satisfy the requirement under section
457(d)(2)(b) that any distribution made over a period of more
than 1 year can only be made in substantially nonincreasing
amounts. Unless otherwise elected by the Participant, all
determinations under Section 401(a)(9) shall be made without
recalculation of life expectancies.
7.04 Post-retirement Death Benefits:
(a) Should the Participant die after he has begun to receive
benefits under a payment option, the remaining payments, if
any, under the payment option shall be payable to the
Participant's Beneficiary within the 30-clay period
commencing with the 61st day after the Participant's death,
unless the Beneficiary elects payment under a different
payment option that is available under Section 7.02 within 60
days of the Participant's death. Any different payment option
elected by a Beneficiary under this section must provide for
payments at a rate that is at least as rapid under the payment
option that was applicable to the Participant. In no event shall
the Employer or Administrator be liable to the Beneficiary for
the amount of any payment made in the name of the
Participant before the Administrator receives proof of death of
the Participant.
(b) If the designated Beneficiary does not continue to live
for the remaining period of payments under the payment
option, then the commuted value of any remaining payments
under the payment option shall be paid in a lump sum to the
estate of the Beneficiary. In the event that the Participant's
estate is the Beneficiary, the commuted value of any remaining
payments under the payment option shall be paid to the estate
in a lump sum.
7.05 Pre-retirement Death Benefits:
(a) Should the Participant die before he has begun to
receive the benefits' provided by Section 7.01, the value of the
Participant's Account shall be payable to the Beneficiary
commencing within the 30-day period commencing on the
91st day after the Participant's death, unless the Beneficiary
elects a different fixed or detemilnable benefit commencement
date within 90 days of the Participant's death. Such benefit
commencement date shall be not later than the later of (i)
December 31 of the year following the year of the Participant's
death, or (ii) if the Beneficiary is the Participant's spouse,
December 31 of the year in which the Participant would have
attained age 70-1/2.
(b) Unless a Beneficiary elects a different payment option
prior to the benefit commencement date, death benefits under
this Section shall be paid in approximately equal annual
installments over five years, or over such shorter period as may
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be necessary to assure that the amount of any annual
installment is not less than $3,500. A Beneficiary shall be
treated as if he were a Participant for purposes of determining
the payment options available under Section 7.02, provided,
however, that the payment option chosen by the Beneficiary
must provide for payments to the Beneficiary over a period no
longer than the life expectancy of the Beneficiary, and
provided that such period may not exceed (15) years if the
Beneficiary is not the Participant's spouse.
(C) In the event that the Beneficiary dies before the
payment of death benefits has commenced or been completed,
the remaining value of the Participant's Account shall be paid
to the estate of the Beneficiary in a lump sum. In the event
that the Participant's estate is the Beneficiary, payment shall be
made to the estate in a lump sum.
7.06 Unforeseeable Emergencies: .
(a) In the event an unforeseeable emergency occurs, a
Participant may apply to the Employer to receive that part of
the value of his Account that is reasonably needed to satisfy the
emergency need. If such an application is approved by the
Employer, the Participant shall be paid only such amount as
the Employer deems necessary to meet the emergency need,
but payment shall not be made to the extent that the financial
hardship may be relieved through cessation of deferral under
the Plan, insurance or other reimbursement, or liquidation of
other assets to the extent such liquidation would not itself
cause severe financial hardship.
(b) An unforeseeable emergency shall be deemed to
involve only circumstances of severe financial hardship to the
Participant resulting from a sudden unexpected illness,
accident, or disability of the Participant or of a dependent (as
defined in section 152(a) of the Code) of the Participant, loss
of the Participant's property due to casualty, or other similar
and extraordinary unforeseeable circumstances arising as a
result of events beyond the control of the Participant. The
,need to send a Participant's child to college or to purchase a
new home shall not be considered unforeseeable emergencies.
The determination as to whether such an unforeseeable
emergency exists shall be based on the merits of each
individual case.
7,07 Transitional Rule for Pre-1989 Benefit Elections:
In the event that, prior to January 1,1989, a Participant or
Beneficiary has commenced receiving benefits under a
payment option or has irrevocably elected a payment option or
benefit commencement date, then that payment option or
election shall remain in effect notwithstanding any other
provision of the Plan.
Article VIII. Non-Assignability
8.01 In General: Except as provided in Section 8.02, no
Participant or Beneficiary shall have any right to commute,
sell, assign, pledge, transfer or otherwise conveyor encumber
the right to receive any payments hereunder, which payments
and rights are expressly declared to be non-assignable and non-
transferable.
8,02 Domestic Relations Orders:
(a) Allowance of Transfers: To the extent required under
final judgement, decree, or order (including approval of a
property settlement agreement) made pursuant to a state
domestic relations law, any portion of a Participant's Account
may be paid or set aside for payment to a spouse, former
spouse, or child of the Participant. Where necessary to carry
out the terms of such an order, a separate Account shall be
established with respect to the spouse, former spouse, or child
who shall be entitled to make investment selections with
respect thereto in the same manner as the Participant; any
amount so set aside for a spouse, former spouse, or child shall
be paid out in a lump sum at the earliest date that benefits may
be paid to the Participant, unless the order directs a different
time or form of payment. Nothing in this Section shall be
construed to authorize any amount to be distributed under the
Plan at a time or in a form that is not permitted under Section
457 of the Code. Any Payment made to a person other than
the Participant pursuant to this Section shall be reduced by
required income tax \vithholding; the fact that payment is
made to a person other than the Participant may not prevent
such payment from being includible in the gross income of the
Participant for withholding and income tax reporting purposes.
(b) Release from Liability to Participant: The Employer's
liability to pay benefits to a Participant shall be reduced to the
extent that amounts have been paid or set aside for payment to
a spouse, former spouse, or child pursuant to paragraph (a) of
the Section. No such transfer shall be effectuated uriless the
Employer or Administrator has been provided with satisfactory
eviqence that the Employer and the Administrator are released
from any further claim by the' Participant with respect to such
amounts. The Participant sh~ be deemed to have released the
Employer and the Administrator from any claim with respect
to such amounts, in any case in which (i) the Employer or
Administrator has been served with legal process or otherwise
joined in a proceeding relating to such transfer, (ii) the
Participant has been notified of the pendency of such
proceeding in the manner prescribed by the law of the
jurisdiction in which the proceeding is pending for service of
process in such action or by mail from the Employer or
Administrator to the Participant's last known mailing address,
and (iii) the Participant fails to obtain an order of the court in
the proceeding relieving the Employer or Administrator from
the obligation to comply with the judgment, decree, or order.
........................................................,................................................... .
Fi Vt
[ C ,v, A R. E T [ R. E ,vI E N T COR. P 0 R. A T [ 0 N
(c) Participation in Legal Proceedings: The Employer and
Administrator shall not be obligated to defend against or set
aside any judgement, decree, or order described in paragraph
(a) any legal order relating to the garnishment of a Participant's
benefits, unless the full expense of such legal action is borne by
the Participant. In the event that the Participant's action (or
inaction) nonetheless causes the Employer or Administrator to
incur such expense, the amount of the expense may be charged
against the Participant's Account and thereby reduce the
Employer's obligation to pay benefits to the Participant. In the
course of any proceeding relating to divorce, separation. or
child support, the Employer and Administrator shall be
authorized to disclose information relating to the Participant's
Account to the Participant's spouse, former spouse, or child
(including the legal representatives of the spouse, former
spouse, or child), or to a court.
Article IX. Relationship to Other Plans and
Employment Agreements
This plan serves in addition to any other retirement, pension,
or benefit plan or system presently in existence or hereinafter
established for the benefit of the Employer's employees, and
participation hereunder shall not affect benefits receivable
under any such plan or system. Nothing contained in this Plan
shall be deemed to constitute an employment contract or
agreement between any Participant and the Employer or to
give any Participant the right to be retained in the employ of
the Employer. Nor shall anything herein be construed to
modifY the terms of any employment contract or agreement
between a Participant and the Employer.
Article X. Amendment or Termination of Plan
The Employer may at any time amend this Plan provided that
it transmits such amendment in writing to the Administrator at
le2St 30 days prior to the effective date of the amendment. The
consent of the Administrator shall not be required in order for
such amendment to become effective. but the Administrator
shall be under no obligation to continue acting as
Administrator hereunder if it disapproves of such amendment.
The Employer may at any time terminate this Plan.
The Administrator may at any time propose an
amendment to the Plan by an instrument in writing
transmitted to the Employer at least 30 days before the
effective date of the amendment. Such amendment shall
become effective unless, within such 30-day period, the
Employer notifies the Administrator in writing that it
disapproves such amendment, in which case such amendment
shall not become effective. In the event of such disapproval,
the Administrator shall be under no obligation to continue
acting as Administrator hereunder. If this Plan document
constitutes an amendment and restatement of the Plan as
previously adopted by the Employer, the amendments
contained herein shall become etfective on January 1, 1996,
and the terms of the preceding P~n document shall remain in
effect through December 31, 1995.
Except as may be required to maintain the status of the
Plan as an eligible deferred compensation plan under section
457 of the Code or to comply with other applicable laws, no
amendment or termination of the Plan shall divest any
Participant of any rights with respect to compensation deferred
before the date of the amendment or termination.
Article XI. Applicable Law
This Plan shall be construed under the laws of the state where
the Employer is located and is established with the intent that
it meet the requirements of an "eligible deferred compensation
plan" under Section 457 of the Code, as amended. The
provisions of this Plan shall be interpreted wherever possible in
conformity with the requirements of that section.
Article XII. Gender and Number
The masculine pronoun. whenever used herein, shall include
the feminine pronoun, and the singular shall include the plural,
except where the context requires otherwise.
............................................................................................................ .
Six
ATTACHMENT "4"
APPENDIX "B"
DE CLARA TION OF TRUST
OF
I.C.M.A. RETIREMENT TRUST
j
Page 6
-I j i P I a /I ,-1 d 0 P I i 0 /I P J C k age ReI a i /I Doc II 1/1 e /I C
Dee I a r a I i 0 /I 0 f T r II sea f I II e [C.\-1 /1 ReI ire //I e II ( T r tl S (. J.I /I II a r y I 9 9 j
DECLARATION OF TRUST
OF ICMA 'RETIREMENT TRUST
Article I. Name and Definitions
Section 1.1 Name: The Name of the Trust created hereby is
the ICMA Retirement Trust.
Section 1.2 Definitions: Wherever they are used herein, the
following terms shall have the following respective meanings:
(a) By-laws, The By-laws referred to in Section 4.1 hereof, as
amended from time to time.
(b) Deferred Compensation Plan, A deferred
compensation plan established and maintained by a Public
Employer for the purpose of providing retirement income and
other deferred benefits to its employees in accordance with the
provision of section 457 of the Internal Revenue Code of
1986, as amended.
(c) Employees. Those employees who participate in
Qualified Plans.
(d) Employer Trust. A trust created pursuant to an
agreement between RC and a Public Employer, or an
agreement between RC and a Public Employer for
administrative services that is not a trust, in either case for the
purpose of investing and administering the funds set aside by
such Employer in connection with its Deferred Compensation
agreements with its employees or in connection with its
Qualified Plan.
(e) Investment Contract. A non-negotiable contract
entered into by the Retirement Trust with a financial
institution that provides for a fixed rate of return on
investment.
(f) ICMA. The International City/County Management
Association.
(g) LCMAIRC Trustees, Those Trustees elected by the
J Public Employers who, in accordance with the provisions of
Section 3.1 (a) hereof. are also members of the Board of
Directors ofICMA or RC (or in the case ofRC, former
members of the RC Board).
(h) Investment Adviser. The Investment Adviser that enters
into a contract with the Retirement Trust to provide advice
with respect to investment of the Trust Property.
(i) Portfolios. The separate commingled accounts of
investment established by the Investment Adviser to the
Retirement Trust, under the supervision of the Trustees, for
the purpose of providing investments for the Trust Property.
(j) Public Employee Trustees. Those Trustees elected by
the Public Employers who, in accordance with the provision
of Secti,on 3.1 (a) hereof. are full-time employees of Public
Employers.
(k) Public Employer Trustees. Public Employers who serve
as trustees of the Qualified Plans.
(1) Public Employer. A unit of state or local government, or
any agency or instrumentality thereof. that has adopted a
Deferred Compensation Plan or a Qualified Plan and has
executed this Declaration of Trust.
(m) Qualified Plan. A plan sponsored by a Public Employer
for the purpose of providing retirement income to its
employees which satisfies the qualification requirements of
Section 401 of the Internal Revenue Code, as amended.
(n) RC. The International City Management Association
Retirement Corporation.
(0) Retirement Trust. The Trust created by this Declaration
of Trust.
(p) Trust Property, The amounts held in the Retirement Trust
on behalf of the Public Employers in connection with Deferred
Compensation Plans and on behalf of the Public Employer
Trustees for the exclusive benefit of Employees pursuant to
Qualified Plans. The Trust Property shall include any income
resulting frolfl the investment to the amounts so held.
(q) Trustees. The Public Employee Trustees and ICMAIRC
Trustees elected by the Public Employers to serve as members
of the Board of Trustees of the Retirement Trust.
Article II. Creation and Purpose of the Trust;
Ownership of Trust Property
Section 2.1 Creation: The Retirement Trust was created ,by
the execution of this Declaration of Trust by the initial
Trustees and Public Employers and is established with respect
to each participating Public Employer by adoption of this
Declaration of Trust.
Section 2,2 Purpose: The purpose of the Retirement Trust
is to provide for the commingled investment of funds held by
the Public Employers in connection with their Deferred
Compensation and Qualified Plans. The Trust Property shall
be invested in the Portfolios, in Investment Contracts, and in
other investments recomrn~nded by the Investment Adviser
under the supervision of the Board of Trustees. No part of the
Trust Property will be invested in securities issued by Public
Employers.
Section 2.3 Ownership of Trust Property: The Trustees
shall have legal title to the Trust Property. The Public Em-
ployers shall be the beneficial owners of the portion of the
Trust Property allocable to the Deferred Compensation Plans.
The portion of the Trust Property allocable to the Qualified
Plans shall be held tor the Public Employer Trustees for the
exclusive benefit of the Employees.
.................................................................................................,.......... .
Sevell
I C M!\ R E T IRE ,vI E N T COR P () R ;\ T r 0 N
Article III. Trustees
Section 3.1 Number and Qualification of Trustees:
(a)The Board of Trustees shall consist of nine Trustees. Five of
the Trustees shall be full-time employees of a Public Employer
(the Public Employee Trustees) who are authorized by such
Public Employer to serve as Trustee. The remaining four
Trustees shall consist of two persons who, at the time of
election to the Board of Trustees, are members of the Board of
Directors of ICMA and two persons who, at the time of
election, are members or former members of the Board of
Directors ofRC (the ICMA/RC Trustees). One of the
Trustees who is a director of ICMA, and one of the Trustees
who is a director of RC, shall, at the time of election, be full-
time employees of Public Employers. (b) No person may
serve as a Trustee for more than two terms in any ten-year
period.
Section 3.2 Election and Term: (a) Except for the Trust-
ees appointed to fill vacancies pursuant to Section 3.5 hereof,
the Trustees shall be elected by a vote of a majority of the
voting Public Employers in accordance with the procedures set
forth in the By-Laws. (b) At the first election of Trustees,
three Trustees shall be elected for a term of three years, three
Trustees shall be elected for a term of two years and three
Trustees shall be elected for a term of one year. At each
subsequent election, three Trustees shall be elected. each to
serve for a term of three years and until his or her successor is
elected and qualified.
Section 3.3 Nominations: The Trustees who are full-time
employees of Public Employers shall serve as the Nominating
Committee for the Public Employee Trustees. The Nominating
:=onunittee shall choose candidates for Public Employee Trustee
..~.~.~...L.:..':" wiLh Jlt: pwct:dures set forth in the By-Laws.
~..-:-~,:,!! 3-4 Resignation and Removal: (a) Any Trustee
- .~. 1<;~~1S11 d..> Trustee (without need for prior or subsequent
... ......~:..;;) by an instrument in writing signed by the Trustee
..--:/~li....":'...:! :::. :~.. other Trustees and such resignation shall
;:ff".:::i;;;: !lp0,~ ~U"::l delivery, or at a later date according to
C'~"''-O .:of [he instrumem. Any of the Trustees may be
. -. n' ':.. cause, by a Vote of a majority of the Public
;;.~.!.~.;..c.. (b) Each Public Employee Trustee shall resign his
n 11", f'o~itiQn as Trustee within SL'Xty days of the date on
"!'i::~ ~~ or she ceases to be a full-time employee of a Public
-:IiIIJ~l-JvFr
J.: - I --
;~.;:...., 3,5 Vacancies: The term of office ofa Trustee shall
:==-~~~~: l.!."1d a vacancy' shall occur in the event his or her
-- ~~. resign~tion, removal, adjudicated iJ1COmpetence or other
. '~'H:;~' LU petforr:n the duties of the office of a Trustee. In
.:;;5':0 .:.f;; vacan.::y, the remaining Trustees shall appoint
L ,; . ~~ ~ n ~5 ,l,--=~' ill Lht:ir discretion shall see fit (subject to
~~! -~~~~~~I_'!~~ j~i Curt!! in this Section), co serve for che
unexpired portion of the term of the Trustee who has resigned
or othelVlise ceased to be a Trustee. The appointment shall be
made by a written instrument signed by a majority of the
Trustees. The person appointed must be the same type of
Trustee (i.e., Public Employee Trustee or ICMA/RC Trustee)
as the person who has ceased to be a Trustee. An appointment
of a Trustee may be made in anticipation of a vacancy to occur
at a later date by reason of retirement or resignation, provided
that such appointment shall not become effective prior to such
retirement or resignation. Whenever a vacancy shall occur,
until such vacancy is filled as provided in this Section 3.5, the
Trustees in office, regardless of their number, shall have all the
powers granted to the Trustees and shall discharge all the duties
imposed upon the Trustees by this Declaration. A written
instrument certifYing the existence of a vacancy signed by a
majority of the Trustees shall be conclusive evidence of the
existence of such vacancy.
Section 3.6 Trustees Serve in Representative Capacity:
By executing this Declaration, each Public Employer agrees
that the Public Employee Trustees elected by the Public
Employers are authorized to act as agents and representatives of
the Public Employers collectively.
Article IV. Powers of Trustees
Sec:tion 4.1 General Powers: The Trustees shall have the
power to conduct the business of the Trust and to carry on its
ope:rations. Such power shall include, but shall not be limited
to, the power to:
(a) receive the Trust Property from the Public Employers,
Public Employer Trustees or the trustee or administrator
under any Employer Trust;
(b) enter into a contract with an Investment Adviser
providing, among other things, for the establishment and
operation of the Portfolios, selection of the Investment
Contracts in which the Trust Property may be invested,
s~lection of the other investments for the Trust Property
and the payment of reasonable fees to the Investment
Adviser and to any sub-investment adviser retained by
the Investment Adviser;
(c) review annually the performance of the Investment
Adviser and approve annually the contract with such
Investment Adviser;
(d) invest and reinvest the Trust Property in the Portfolios,
the Investment Contracts and in any other investment
recommended by the Investment Adviser, but not
including securities issued by Public Employers,
provided that if a Public Employer has directed that its
monies be invested in one or more specified Portfolios
or in an [nvestment Contract, the Trustees of the
,., - -...........................................................................................
Eight
.J. 5 7 [> 'IJ II ."j d I' I' ' i \1 11 P ,I l- k I' .t.! L' R t' r " i 11 D tl ( II 111 t' 11 ,
[) <' ( I " r" ( i ,I /I ,J J T r 1/ .' ( "/ (" (' I C .\1.~ I? (' I i r " 111 " /I ( r,. /I " I. -' ,/ II 1/ ,/ r )' 9 9 .i
.J.
Retirement Trust shall invest such monies in accordance
with such directions;
(e) keep such portion of the Trust Property in cash or cash
balances as the Trustees, from time to time, may deem
to be in the best interest of the Retirement Trust created
hereby without liability for interest thereon;
(f) accept and retain for such time as they may deem
advisable any securities or other property received or
acquired by them as Trustees hereunder, whether or not
such securities or other property would normally be
purchased as investment hereunder;
(g) cause any securities or other property held as part of the
Trust Property to be registered in the name of the
Retirement Trust or in the name of a nominee, and to
hold any investments in bearer form, but the. books and
records of the Trustees shall at all times show that all
such investments are a part of the Trust Property;
(h) make, execute, acknowledge; and deliver any and all
documents of transfer and conveyance and any and all
other instruments that may be necessary or appropriate
to carry out the powers herein granted;
(i) vote upon any stock, bonds, or other securities; give
general or special proxies or powers of attorney with or
without power of substitution; exercise any conversion
privileges, subscription rights, or other options, and
make any payments incidental thereto; oppose, or
consent to, or otherwise participate in, corporate
reorganizations or to other changes affecting corporate
securities, and delegate discretionary powers and pay any
assessments or charges in connection therewith; and
generally exercise any of the powers of an owner with
respect to stocks, bonds, securities or other property
held as part of the Trust Property;
(j) enter into contracts or arrangements for goods or
services required in connection with the operation of
the Retirement Trust, including, but not limited to,
contracts with custodians and contracts for the provision
of administrative services;
(k) borrow or raise money for the purposes of the
Retirement Trust in such amount, and upon such terms
and conditions, as the Trustees shall deem advisable,
provided that the aggregate amount of such borrowings
shall not exceed 30% of the value of the Trust Property.
No person lending money to the Trustees shall be
bound to see the application of the money lent or to
inquire into its validity, expediency or propriety or any
such borrowing;
(1) incur reasonable expenses as required for the
operation of the Retirement Trust and deduct such
expenses from of the Trust Property;
(m) pay expenses properly allocable to the Trust Property
incurred in connection with the Deferred
Compensation Plans, Qualified Plans, or the Employer
Trusts and deduct such expenses from that portion of
the Trust Property to which such expenses are properly
allocable;
(n)' payout of the Trust Property all real and personal
property ta..xes, income taxes and other ta..xes of any and
all kinds which, in the opinion of the Trustees, are
properly levied, or assessed under existing or future laws
upon, or in respect of, the Trust Property and allocate
any such ta..xes to the appropriate accounts;
(0) adopt, amend and repeal the By-laws, provided that
such By-laws are at all times consistent with the terms of
this Declaration of Trust;
(p) employ persons to make available interests in the
Retirement Trust to employers eligible to maintain a
Deferred Compensation Plan under Section 457 or a
Qualified Plan under Section 401 of the Internal
Revenue Code, as amended;
(q) issue the Annual Report of the Retirement Trust, and
the disclosure documents and other literature used by
the Retirement Trust;
(r) in addition to conducting the investment program
authorized in Section 4.1 (d), make loans, including the
purchase of debt obligations, provided that all such loans
shall bear interest at the current market rate;
(5) contract for, and delegate any powers granted hereunder
to, such officers, agents, employees, auditors and
attorneys as the Trustees may select, provided that the
Trustees may not delegate the powers set forth in
paragraphs (b), (c) and (0) of this Section 4.1 and may
not delegate any powers if such delegation would violate
their fiduciary duties;
, (t) provide for the indemnification of the Officers and
Trustees of the Retirement Trust and purchase fiduciary
Insurance;
(u) maintain books and records, including separate accounts
for each Public Employer, Public Employer Trustee or
Employer Trust and such additional separate accounts as
are required under, and consistent with, the Deferred
Compensation or Qualified Plan of each Public
Employer; and
(v) do all such acts, take all such proceedings, and exercise
all such rights and privileges, although not specifically
mentioned herein, as the Trustees may deem necessary
or appropriate to administer the Trust Property and to
carry out the purposes of the Retirement Trust.
............................................................................................................ .
Nin,
[ C Ivl:\ R E T IRE .vi E N T COR P 0 R :\ T [ 0 N
Section 4.2 Distribution of Trust Property: Distributions
of the Trust property shall be made to, or on behalf of, the
Public Employer or Public Employer Trustee, in accordance
with the terms of the Deferred Compensation Plans, Qualified
Plans or Employer Trusts. The Trustees of the Retirement
Trust shall be fully protected in making payments in accor-
dance with the directions of the Public Employers, Public
Employer Trustees or trustees or administrators of any Em-
ployer Trust without ascertaining whether such payments are
in compliance with the provisions of the applicable Deferred
Compensation or Qualified Plan or Employer Trust.
Section 4.3 Execution of Instruments: The Trustees may
unanimously designate anyone or more of the Trustees to
execute any instrument or document on behalf of all, including
but not limited to the signing or endorsement of any check
and the signing of any applications, insurance and other .
contracts, and the action of such designated Trustee or Trust-
ees shall have the same force and effect as if taken by all the
Trustees.
Article V. Duty of Care and Liability of Trustees
Section 5.1 Duty of Care: In exercising the powers herein-
before granted to the Trustees, the Trustees shall perform all
acts within their authority for the exclusive purpose of provid-
ing benefits for the Public Employers in connection with
Deferred Compensation Plans and Public Employer Trustees
pursuant to Qualified Plans, and shall perform such acts with
the care, skill, prudence and diligence in the circumstances
then prevailing that a prudent person acting in a like capacity
and familiar with such matters would use in the conduct of an
enterprise of a like character and with like aims.
Section 5.2 Liability: The Trustees shall not be liable tor any
mistake ofjudgmem or other action taken in good faith, and
for any action taken or omitted in reliance in good faith upon
the books of account or other records of the Retirement Trust,
-r --- ~~-- .:::.pii-.ivu .:::.f counsd, or upon reports made to the
-~:~-=:~_: Trust by any of its officers. employees or agents or
-, ~:,'- :iJ.ve5ili,eiLL Adviser or any sub-investment adviser,
""-'- '-""-":':.::::, appraiser or other expert or consultant selected
.. :_~. :':~.>0"..:":;; C.lre by ihe Trustees, officers or employees of
~_",ci;:",,,,-~,,-c Trust. The Trustees shall also not be liable for
"')' luss sustained by the Trust Property by reason of any
_C~~~_~~~ rnadt: in good faith and in accordance with the
,....!.._.! .=-~ ::~':~ set forth in Section 5.1.
;n;;'... 53 Bond: No Trustee shall be obligated to give any
HU": nr oiher security for the performance of any of his or her
1~~..-~~!...-~~~~!'""
Article VI. Annual Report to Shareholders
The Trustees shall annually submit to the Public Employers
:lnd Public Employer Trustees a written report of the transac-
tions of the Retirement Trust, including financial statements
which shall be certified by independent public accountants
chosen by the Trustees.
Article VII. Duration or Amendment
of Retirement Trust
Section 7.1 Withdrawal: A Public Employer or Public
Employer Trustee may, at any time, withdraw from this
Retirement Trust by delivering to the Board of Trustees a
written statement of withdrawal. In such statement, the Public
Employer or Public Employer Trustee shall acknowledge that
the Trust Property allocable to the Public Employer is derived
from compensation deferred by employees of such Public
Employer pursuant to its Deferred Compensation Plan or from
contributions to the accounts of Employees pursuant to a
Qualified Plan, and shall designate the financial institution to
which such property shall be transferred by the Trustees of the
Retirement Trust or by the trustee or administrator under an
Employer Trust.
Section 7.2 Duration: The Retirement Trust shall continue
until terminated by the vote of a majority of the Public
Employers, e:lch casting one vote. Upon termination, all of
the Trust Property shall be paid out to the Public Employers,
Public Employer Trustees or the trustees or administrators of
the Employer Trusts, as appropriate.
Section 7.3 Amendment: The Retirement Trust may be
amended by the vote of a majority of the Public Employers,
each casting one vote.
Section 7.4 Procedure: A resolution to terminate or amend
the Retirement Trust or to remove a Trustee shall be submit-
ted to a vote of the ~ublic Employers if: (i) a majority of the
Trustees so direct, or; (ii) a petition requesting a vote signed by
not less that 25 percent of the Public Employers, is submitted
to the Trustees.
Article VIII. Miscellaneous
Section 8.1 Governing Law: Except as otherwise required
by state or local law, this Declaration of Trust and the Retire-
ment Trust hereby created shall be construed and regulated by
the laws of the District of Columbia.
Section 8.2 Counterparts: This Declaration may be
executed by the Public Employers and Trustees in two or
more counterparts. each of which shall be deemed an
original but all of which together shall constitute one and
the same instrument.
.. - - -..........................................,........................,.............................
T"II
ATTACHMENT "5"
ADMINISTRATIVE AGREEMENT
Page 7
ICMA
RETIREMENT
CORPORATION
. ADMINISTRATIVE SERVICES AGREEMENT
Type: 457
Account Number:
Plan # 4390
ICMA
RETIREMENT
CORPORATION
ADMINISTRATIVE SERVICES AGREEMENT
This Agreement, made as of the day of
, 199 , (herein referred to as the "Inception Date"), between The International
City Management Association Retirement Corporation ("RC"), a nonprofit corporation
organized and existing under the laws of the State of Delaware; and the City of
Winter Springs ("Employer") a City organized and existing under the laws of the State
of Florida with an office at 1126 East SR 434, Winter Springs, Florida 32779,
Recitals
Employer acts as a public plan sponsor for a retirement plan ("Plan") with
responsibility to obtain investment alternatives and services for employees
participating in that Plan;
The ICMA Retirement Trust (the "Trust") is a common law trust governed
by an elected Board of Trustees for the commingled investment of retirement funds
held by state and local governmental units for their employees;
RC acts as investment adviser to the Trust; RC has designed, and the
Trust offers, a series of separate funds (the "Funds") for the investment of plan
assets as referenced in the. Trust's principal disclosure documents, "Making Sound
Investment Decisions: A Retirement Investment Guide" and "A Retirement Investment
Guide for the Mutual Fund Series," The Funds are available only to public employers
and only through the Trust and RC.
In addition to serving as investment adviser to the Trust, RC provides a
complete offering of services to public employers for the operation of employee
retirement plans including, but not limited to, communications concerning investment
alternatives, account maintenance, account record-keeping, investment and tax
reporting, form processing, benefit disbursement and 'asset management,
- 2 -
Plan # 4390
ICMA
RETIREMENT
CORPORATION
Agreements
1.
Arrointmp.nt of RC
Employer hereby designates RC as Administrator of the Plan to perform
all non-discretionary functions necessary for the administration of the Plan with
respect to assets in the Plan deposited with the Trust, The functions to be performed
by RC include:
(a) allocation in accordance with participant direction of individual
accounts to investment Funds offered by the Trust;
(b) maintenance of individual accounts for participants reflecting
amounts deferred, income, gain, or loss credited, and amounts disbursed as benefits;
(c) provision of periodic reports to the Employer and participants of the
status of Plan investments and individual accounts;
(d) communication to participants of information regarding their rights
and elections under the Plan; and
(e) disbursement of benefits as agent for the Employer in accordance
with terms of the Plan.
2.
Anortion of TrlJ~t
Employer has adopted the Declaration of Trust of the ICMA Retirement
Trust and agrees to the commingled investment of assets of the Plan within the Trust,
Employer agrees that operation of the Plan and investment, management and
disbursement of amounts deposited in the Trust shall be subject to the Declaration
of Trust, as it may be amended from time to time and shall also be subject to terms
and conditions set forth in disclosure documents (such as the Retirement Investment
Guide or Employer Bulletins) as those terms and conditions may be adjusted from time
to time. It is understood that the term "Employer Trust" as it is used in the
Declaration of Trust shall mean this Administrative Services Agreement.
3.
Emrloyp.r Duty to Furni~h Information
Employer agrees to furnish to RC on a timely basis such information as
is necessary for RC to carry out its responsibilities as Administrator of the Plan,
including information needed to allocate individual participant accounts to Funds in
the Trust, and information as to the employment status of participants, and
participant ages, addresses and other identifying information (including tax
- 3 -
Plan # 4390
lCMA
RETIREMENT
CORPORATION
identification numbers), RC shall be entitled to rely upon the accuracy of any
. information that is furnished to it by a responsible official of the Employer or any
information relating to an individual participant or beneficiary that is furnished by such
participant or beneficiary, and RC shall not be responsible for any error arising from
its reliance on such information. RC will provide account information in reports,
statements or accountings, All account discrepancies must be reported to RC within
120 days of the close of the quarter in which the discrepancy occurs, After that
time the report, statement, or accounting shall be deemed to have been accepted by
the Employer and the participants
4.
Cp.rtain Rp.prp.sp.ntations, Warrantip.s, ann Covp.nants
RC represents and warrants to Employer that:
(a) . RC is a non-profit corporation with full power and authority to enter
into this Agreement and to perform its obligations under this Agreement. The ability
of RC to serve as investment adviser to the Trust is dependent upon the continued
willingness of the Trust for RC to serve in that capacity,
(b) RC is an investment adviser registered as such with the Securities
and Exchange Commission under the Investment Advisers Act of 1940, as amended.
ICMA-RC Services, Inc. (a wholly owned subsidiary of RC) is registered as a broker-
dealer with the Securities and Exchange Commission (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 compliance with the
requirements for eligible deferred compensation plans under Section 457 of the
Internal Revenue Code; provided, however, RC shall not be responsible for the eligible
status of the Plan in the event that the Employer directs RC to administer the Plan or
disburse assets in a manner inconsistent with the requirements of Section 457 or
otherwise causes the Plan not to be carried out in accordance with its terms;
provided, further, that if the plan document used by the Employer contains terms that
differ from the terms of RC's standardized plan document, RC shall not be responsible
for the eligible status of the Plan to the extent affected by the 'differing terms in the
Employer's plan document,
Employer represents and warrants to RC that:
(d) Employer is organized in the form and manner recited in the opening
paragraph of this Agreement with full power and authority to enter into and perform
its obligations under this Agreement and to act for the Plan and participants in the
- 4 -
Plan # 4390
lCMA
RETIREMENT
CORPORATION
manner contemplated in this Agreement. Execution, delivery, and performance of this
Agreement will not conflict with any law, rule, regulation or contract by which the
Employer is bound or to which it is a party.
5.
P;:irtidp;:ition in CArt;:iin Pror.AAdings
The Employer hereby authorizes RC to act as agent, to appear on its
behalf, and to join the Employer as a necessary party in all legal proceedings involving
the garnishment of benefits or the transfer of benefits pursuant to the divorce or
separation of participants in the Employer Plan. Unless Employer notifies RC
otherwise, Employer consents to the disbursement by RC of benefits that have been
garnished or transferred to a former spouse, spouse or child pursuant to a domestic
relations order.
6.
CompAns;:ition ;:indo P;:iymAnt
(a) Plan Administration Fee, The amount to be paid for plan
administration services under this Agreement shall be 0.75% per annum of the
amount of Plan assets invested in the Trust. Such fee shall be computed based on
average daily net Plan assets in the Trust.
(b) Account Maintenance Fee. There shall be an annual account
maintenance fee of $18.00. The account maintenance fee is payable in full on
January 1 of each year on each account in existence on that date, For accounts
established after January 1, the fee is payable on the first day of the calendar quarter
following establishment and is prorated by reference to the number of calendar
quarters remaining on the day of payment.
(c) Compensation for Management Services to the Trust. Employer
acknowledges that in addition to amounts payable under this Agreement, RC receives
fees from the. Trust for investment management services furnished to the Trust,
except that this fee is not assessed in the Mutual Fun'd Series
.-'
(d) Mutual Fund Services Fee. There is .an annual charge of 0,25% of
assets under management that are held in the Trust's Mutual F,und Series.
(e) Model Portfolio Fund Fee. There is an annual charge of 0.10% of
assets under management that are held in the Trust's Model Portfolio Funds.
(f) Payment Procedures, All payments to RC pursuant to this Section
6 shall be paid out of the Plan Assets held by the Trust and shall be paid by the Trust.
The amount of Plan Assets held in the Trust shall be adjusted by the Trust as required
to reflect such payments.
- 5 -
Plan # 4390
leMA
RETIREMENT
CORPORATION
7.
Custody
Employer understands that amounts invested in the Trust are to be
remitted directly to the Trust in accordance with instructions provided to Employer
by RC and are not to be remitted to RC. In the event that any check or wire transfer
is incorrectly labeled or transferred to RC, RC is authorized, acting on behalf of the
transferor, to transfer such check or wire transfer to the Trust. .
8.
RAsronsihility
RC shall not be responsible for any acts or omissions of any person other
than RC in connection with the administration or operation of the Plan,
9.
Ie.rm
This Agreement may be terminated without penalty by either party on
sixty days advance notice in writing to the other.
10.
AmAndmAnts <=Ind AdjllstmAnts
. (a) This Agreement may not be amended except by written instrument
signed by the parties.
(b) The parties agree that compensation for services under this
Agreement and administrative and operational arrangements may be adjusted as
follows:
RC may propose an adjustment by written notice to the Employer given
at least 60 days before the effective date of the adjustment and the notice may
appear in disclosure documents such as Employer Bulletins and the Retirement
Investment Guide, Such adjustment shall become effec~ive unless, within the 60 day
period before the effective date the Employer notifies RC in writing that it does not
accept such adjustment, in which event the parties will negotiate with respect to the
adjustment,
(c) No failure to exercise and no delay in exercising any right, remedy,
power or privilege hereunder shall operate as a waiver of such right, remedy, power
or privilege,
11.
Notir.As
All notices required to be delivered under Section 10 of this Agreement
shall be delivered personally or by registered or certified mail, postage prepaid, return
- 6 -
-~
,,~
Plan # 4390
ICMA
RETIREMENT
CORPORATION
receipt requested, to (i) Legal Department, ICMA Retirement Corporation, 777 North
Capitol Street, N,E., Suite 600, Washington, D,C, 20002-4240; OJ) Employer at the
office set forth in the first paragraph hereof, or to any other address designated by
the party to receive the same by written notice similarly given.
12. Comr1p.tp. Agrp.p.mp.nt
This Agreement shall constitute the sole agreement between RC and
Employer relating to the object of this Agreement and correctly sets forth the
complete rights, duties and obligations of each party to the other as of its date. Any
prior agreements, promises, negotiations or representations, verbal or otherwise, not
expressly set forth in this Agreement are of no force and effect.
13. Govp.rning L;::JW
This agreement shall be governed by and construed in accordance with
the laws of the State of Florida applicable to contracts made in that jurisdiction
without reference to its conflicts of laws provisions.
In Witness Whereof, the parties hereto have executed this Agreement
as of the Inception Date first above written.
CITY OF WINTER SPRINGS
by:
Signature/Date
Name and Title (Please Print)
INTERNATIONAL CITY MANAGEMENT
ASSOCIATION RE~IREMENT
CORPORA TION
by:
Stephen Wm, Nordholt/Date
Corporate Secretary
- 7 -
.,
~~
..
,
ICMA
RETIREMENT
CORPORATION
ADMINISTRATIVE SERVICES AGREEMENT
Type: 401
Account Number
....,
-
.
Plan # 9604
ICMA
RETIREMENT
CORPORATION
ADMINISTRATIVE SERVICES AGREEMENT
This Agreement, made as of the -!>~. day of -::r;;.jl/ e--."
, 199~ (herein referred to as the "Inception DElta"), between The International
City Management Association Retirement Corporation ("RC"), a nonprofit corporation
organized and existing under the laws of the State of Delaware; and City of Winter
Springs ("Employer") a City organized and existing under the laws of the State of
Florida with an office at 1126 East S.R. 434, Winter Springs, Florida 32708.
Recitals
Employer acts as a public plan sponsor for a retirement plan ("Plan") with
responsibility to obtain investment alternatives and services for employees
participating in that Plan;
The ICMA Retirement Trust (the "Trust") is a common law trust governed
by an elected Board of Trustees for the commingled investment of retirement funds
held by state and local governmental units for their employees;
RC acts as investment adviser to the Trust; RC has designed, and the
Trust offers, a series of separate funds (the "Funds") for the investment of plan
assets as referenced in the Trust's principal disclosure documents, "Making Sound
Investment Decisions: A Retirement Investment Guide" and "A Retirement Investment
Guide for the Mutual Fund Series." The Funds are available only to public employers
and only through the Trust and RC.
In addition to serving as investment adviser to the Trust, RC provides a
complete offering of services to public employers for the operation of employee
retirement plans including, but not limited to, communications concerning investment
alternatives, account maintenance, account record-keeping, investment and tax
reporting, form processing, benefit disbursement and asset management.
- 2 -
-.
Plan # 9604
ICMA
RETIREMENT
CORPORATION
Agreements
1.
AppointmAnt of RC
Employer hereby designates RC as Administrator of the Plan to perform
all non-discretionary functions necessary for the administration of the Plan with
respect to assets in the Plan deposited with the Trust. The functions to be performed
by RC include:
(a) allocation in accordance with participant direction of individual
accounts to investment Funds offered by the Trust;
(b) maintenance of individual accounts for participants reflecting
amounts deferred, income, gain, or loss credited, and amounts disbursed as benefits;
(c) provision of periodic reports to the Employer and participants of the
status of Plan investments and individual accounts;
(d) communication to participants of information regarding their rights
and elections under the Plan; and
(e) disbursement of benefits as agent for the Employer in accordance
with terms of the Plan.
2.
Adoption of Trust
Employer has adopted the Declaration of Trust of the ICMA Retirement
Trust and agrees to the commingled investment of assets of the Plan within the Trust.
Employer agrees that operation of the Plan and investment, management and
disbursement of amounts deposited in the Trust shall be subject to the Declaration
of Trust, as it may be amended from time to time and shall also be subject to terms
and conditions set forth in disclosure documents (such as the Retirement Investment
Guide or Employer Bulletins) as those terms and conditions may be adjusted from time
to time. It is understood that the term "Employer Trust" as it is used in the
Declaration of Trust shall mean this Administrative Services Agreement.
3.
EmploYAr Duty to Furnish Infnrm;:!tion
Employer agrees to furnish to RC on a timely basis such information as
is necessary for RC to carry out its responsibilities as Administrator of the Plan,
including information needed to allocate individual participant accounts to Funds in
the Trust, and information as to the employment status of participants, and
participant ages, addresses and other identifying information (including tax
- 3 -
Plan # 9604
ICMA
RETIREMENT
CORPORATION
Agreements
1.
Appointment of RC
Employer hereby designates RC as Administrator of the Plan to perform
all non-discretionary functions necessary for the administration of the Plan with
respect to assets in the Plan deposited with the Trust. The functions to be performed
by RC include:
(a) allocation in accordance with participant direction of individual
accounts to investment Funds offered by the Trust;
(b) maintenance of individual accounts for participants reflecting
amounts deferred, income, gain, or loss credited, and amounts disbursed as benefits;
(c) provision of periodic reports to the Employer and participants of the
status of Plan investments and individual accounts;
(d) communication to participants of information regarding their rights
and elections under the Plan; and
(e) disbursement of benefits as agent for the Employer in accordance
with terms of the Plan.
2.
Adoption of Trust
Employer has adopted the Declaration of Trust of the ICMA Retirement
Trust and agrees to the commingled investment of assets of the Plan within the Trust.
Employer agrees that operation of the Plan and investment, management and
disbursement of amounts deposited in the Trust shall be subject to the Declaration
of Trust, as it may be amended from time to time and shall also be subject to terms
and conditions set forth in disclosure documents (such as the Retirement Investment
Guide or Employer Bulletins) as those terms and conditions may be adjusted from time
to time. It is understood that the term "Employer Trust" as it is used in the
Declaration of Trust shall mean this Administrative Services Agreement.
3.
Employer Dllty to Fllrnish Inform;:!tion
Employer agrees to furnish to RC on a timely basis such information as
is necessary for RC to carry out its responsibilities as Administrator of the Plan,
including information needed to allocate individual participant accounts to Funds in
the Trust, and information as to the employment status of participants, and
participant ages, addresses and other identifying information (including tax
- 3 -
Plan # 9604
ICMA
RETIREMENT
CORPORATION
...
identification numbers). RC shall be entitled to rely upon the accuracy of any
information that is furnished to it by a responsible official of the Employer or any
information relating to an individual participant or beneficiary that is furnished by such
participant or beneficiary, and RC shall not be responsible for any error arising from
its reliance on such information. RC will provide account information in reports,
statements or accountings. All account discrepancies must be reported to RC within
120 days of the close of the quarter in which the discrepancy occurs. After that
time the report, statement, or accounting shall be deemed to have been accepted by
the Employer and the participants
4.
CertRin Repre~entRtion~, WRrrRntie~, Rnd CovenRnt~
RC represents and warrants to Employer that:
(a) RC is a non-profit corporation with full power and authority to enter
into this Agreement and to perform its obligations under this Agreement. The ability
of RC to serve as investment adviser to the Trust is dependent upon the continued
willingness of the Trust for RC to serve in that capacity.
(b) RC is an investment adviser registered as such with the Securities
and Exchange Commission under the Investment Advisers Act of 1940, as amended.
ICMA-RC Services, Inc. (a wholly owned subsidiary of RC) is registered as a broker-
dealer with the Securities and Exchange Commission (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 compliance with the
requirements for plans which satisfy the qualification requirements of Section 401 of
the Internal Revenue Code; provided, however, RC ~hall not be responsible for the
qualified status of the Plan in the event that the Employer directs RC to administer the
Plan or disburse assets in a manner inconsistent with the requirements of Section 401
or otherwise causes the Plan not to be carried out in accordance with its terms;
provided, further, that if the plan document used by the Employer contains terms that
differ from the terms of RC's standardized plan document, RC shall not be responsible
for the qualified status of the Plan to the extent affected by the differing terms in the
Employer's plan document.
Employer represents and warrants to RC that:
(d) Employer is organized in the form and manner recited in the opening
paragraph of this Agreement with full power and authority to enter into and perform
its obligations under this Agreement and to act for the Plan and participants in the
- 4 -
Plan # 9604
ICMA
RETIREMENT
CORPORATION
manner contemplated in this Agreement. Execution, delivery, and performance of this
Agreement will not conflict with any law, rule, regulation or contract by which the
Employer is bound or to which it is a party.
5.
Participation in CArtain ProcAAdings
The Employer hereby authorizes RC to act as agent, to appear on its
behalf, and to join the Employer as a necessary party in all legal proceedings involving
the garnishment of benefits or the transfer of benefits pursuant to the divorce or
separation of participants in the Employer Plan. Unless the Employer notifies RC
otherwise, Employer consents to the disbursement by RC of benefits that have been
garnished or transferred to a former spouse, spouse or child pursuant to a domestic
relations order.
6.
CompAnsation and PaymAnt
(a) Plan Administration Fee. The amount to be paid for plan
administration services under this Agreement shall be 0.75% per annum of the
amount of Plan assets invested in the Trust. Such fee shall be computed based on
average daily net Plan assets in the Trust.
(b) Account Maintenance Fee. There shall be an annual account
maintenance fee of $25.00. The account maintenance fee is payable in full on
January 1 of each year on each account in existence on that date. For accounts
established after January 1, the fee is payable on the first day of the calendar quarter
following establishment and is prorated by reference to the number of calendar
quarters remaining on the day of payment.
II ~ f'\
t<<)cx~~xexcmnnatOCD~a:kfmpk>.ysrxfeIeuo.1ciDOOm.1'
tYeil~IIUdXk3i0elU~ OO1xal:liq~~eml~]fb~~ Imi~~ ~cWU9xWi~
~~~XXxR1amI~wXli'Na:HyxenallIKS:N~'N1lHk1le
mitlmt~m~
(d) Mutual Fund Services Fee. There is an annual charge of 0.25% of
assets under management that are held in the Trust's Mutual Fund Series.
(e) Model Portfolio Fund Fee. There is an annual charge of 0.10% of
assets under management that are held in the Trust's Model Portfolio Funds.
(f) Compensation for Management Services to the Trust. Employer
acknowledges that in addition to amounts payable under this Agreement, RC receives
fees from the Trust for investment management services furnished to the Trust,
except that this fee is not assessed in the Mutual Fund Series
- 5 -
Plan # 9604
ICMA
RETIREMENT
CORPORATION
(g) Payment Procedures. (i) All payments to RC pursuant to Section
6(a), (b), (d) and (e) shall be paid out of the Plan Assets held by the Trust and shall
be paid by the Trust. The amount of Plan Assets held in the Trust shall be adjusted
by the Trust as required to reflect such payments. (ii) All payments to RC pursuant
to Section 6(c) shall be paid directly by Employer, and shall not be deducted from
Plan Assets held by the Trust.
7.
CII~tody
Employer understands that amounts invested in the Trust are to be
remitted directly to the Trust in accordance with instructions provided to Employer
by RC and are not to be remitted to RC. In the event that any check or wire transfer
is incorrectly labeled or transferred to RC, RC is authorized, acting on behalf of the
transferor, to transfer such check or wire transfer to the Trust.
8.
Rp.~pon~ihility
RC shall not be responsible for any acts or omissions of any person other
than RC in connection with the administration or operation of the Plan.
9.
Ierm
This Agreement may be terminated without penalty by either party on
sixty days advance notice in writing to the other.
10.
Amp.ndmp.nt~ and AdjlJ~tmp.nt~
(a) This Agreement may not be amended except by written instrument
signed by the parties.
(b) The parties agree that compensation for services under this
Agreement and administrative and operational arrangements may be adjusted as
follows:
RC may propose an adjustment by written notice to the Employer given
at least 60 days before the effective date of the adjustment and the notice may
appear in disclosure documents such as Employer Bulletins and the Retirement
Investment Guide. Such adjustment shall become effective unless, within the 60 day
period before the effective date the Employer notifies RC in writing that it does not
accept such adjustment, in which event the parties will negotiate with respect to the
adjustment.
(c) No failure to exercise and no delay in exercising any right, remedy,
- 6 -
Plan # 9604
ICMA
RETIREMENT
CORPORATION
power or privilege hereunder shall operate as a waiver of such right, remedy, power
or privilege.
11 . Notices
All notices required to be delivered under Section 10 of this Agreement
shall be delivered personally or by registered or certified mail, postage prepaid, return
receipt requested, to (i) Legal Department, ICMA Retirement Corporation, 777 North
Capitol Street, N.E., Suite 600, Washington, D.C, 20002-4240; (ii) Employer at the
office set forth in the first paragraph hereof, or to any other address designated by
the party to receive the same by written notice similarly given.
12. Complete Agreement
This Agreement shall constitute the sole agreement between RC and
Employer relating to the object of this Agreement and correctly sets forth the
complete rights, duties and obligations of each party to the other as of its date. Any
prior agreements, promises, negotiations or representations, verbal or otherwise, not
expressly set forth in this Agreement are of no force and effect.
13. Governing Law
This agreement shall be governed by and construed in accordance with
the laws of the State of Florida applicable to contracts made in that jurisdiction
without reference to its conflicts of laws provisions.
- 7 -
Plan # 9604
ICMA
RETIREMENT
CORPORATION
In Witness Whereof, the parties hereto have executed this Agreement
as of the Inception Date first above written.
CITY OF WINTER SPRINGS
bY'~~~
ignature/Date
5"';)1, en
Ronald W. McLemore, City Manager
Name and Title (Please Print)
@5'-(C(-7;
David W. McLeod. Deputy Mayor
Name and Title (Please Print)
INTERNATIONAL CITY MANAGEMENT
ASSOCIA ION RETIREMENT
CORP ATION n
by: t..J . ,yJb-J
Stephen Wm. Nordholt/Dat
Corporate Secretary
- 8 -
MAY t)
,J 0 1991