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HomeMy WebLinkAbout1996 12 09 Regular Item F COMMISSION AGENDA ITEM F REGULAR X CONSENT INFORMATIONAL December 9. 1996 Meeting MAR. /?~A1IDEPT Authorization REQUEST: The City Manager requesting the Commission to approve documents related to the implementation of retirement benefits provided for in the City Manager's Employment Contract, and clarifying employment benefits related thereto. PURPOSE: The purpose of this agenda is to approve standard documents necessary for the City Manager to participate in the International City Management Association Retirement Corporation pursuant to benefits provided for in the City Manager's employment agreement with the City. Additionally the purpose of this agenda item is to clarify the Manager's retirement benefits relative to changes made by the City Commission for other City employees effective October 1, 1996. CONSIDERA nONS: Pursuant to the City Manager's Employment Contract the City Manager is provided a retirement benefit in the amount of 6% of salary separate from the City Pension System. This agreement allows the Manager to invest the six percent in what ever pension fund he elects. The City Manager has elected to join the retirement system offered through the International City Management Association known as the International City Management Association Retirement Corporation. Two types of plans are available; a 401 Money Purchase Plan and a 457 Deferred Comp Plan. Both Plans are being implemented. Certain standard documents are required to implement the two retirement plans. Page 1 These documents are attached and include the following: A. 401 Prototype Money Purchase Plan Trust. 1) Trust Adoption Resolution 2) Trust Adoption Agreement 3) Trust Administration Services Agreement B. 456 Deferred Compensation Plan 1) Deferred Compensation Adoption Resolution 2) Deferred Compensation Administrative Services Agreement ISSUE: Does the Commission's desire to give the City Manager the 7%-1 % option afforded to other employees effective October 1, 1996. . Effective October 1, 1996 the City Commission~ increased the City contribution to the employee pension plan from 6% to 7% and mandated the employees contribute a 1 % match. It is assumed but not certain that the Commission desires to offer that same benefit to the City Manager. FUNDING: The cost to the City for implementation of the retirement benefits is as follows: 6% of salary from January 22,1996 to September 30,1996. 7% of salary from October 1, 1996 to September 30, 1997. An annual plan administration fee in the amount of $500. RECOMMENDATION: A. The Commission approve the following International City Management Association Retirement Corporation documents for the 401 Prototype Money Purchase Plan Trust. 1) Trust Adoption Resolution 2) Trust Adoption Agreement 3) Trust Administrative Services Agreement Page 2 B. The Commission approve the following International City Management Association Retirement Corporation documents for the 457 Deferred Compensation Plan. 1) Deferred Compensation Adoption Resolution 2) Deferred Compensation Administrative Services Agreement C. The Commission clarify if it wishes to provide the City Manager with the same 7% City contribution 1% employee contribution benefit provided to other employees effective October 1, 1996. ATTACHMENTS: 1) Trust Adoption Resolution 2) Trust Adoption Agreement 3) Trust Administrative Services Agreement 4) Deferred Compensation Adoption Resolution 5) Deferred Compensation Administrative Services Agreement COMMISSION ACTION Page 3 Attachment II 1 A RESOLUTION OF THE WINTER SPRINGS, FLORIDA CITY COMMISSION (EMPLOYER) PROVIDING RETIREMENT BENEFITS TO THE CITY MANAGER THROUGH THE INTERNATIONAL CITY MANAGEMENT ASSOCIA TION RETIREMENT CORPORATION WHEREAS, the Employer has employed a City Manager rendering valuable services; and WHEREAS, the establishment of a money purchase retirement plan benefits the City Manager by providing funds for retirement and funds for his beneficiaries in the event of death; and WHEREAS, the Employer desires that its money purchase retirement plan be administered by the ICMA Retirement Corporation and that the funds held under such pl<!Il 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 establishes a money purchase retirement plan (the "Plan") in the form of the ICMA Retirement Corporation Prototype Money Purchase Plan and Trust, pursuant to the specific provisions of the Adoption Agreement (executed copy attached hereto). The Plan shall be maintained for the exclusive benefit of the City Manager and his beneficiaries; and BE IT FURTHER RESOLVED, that the Employer hereby executes the Declaration of Trust of the ICMA Retirement Trust, attached hereto, intending this execution to be operative with respect to any retirement or deferred compensation plan subsequently established by the Employer, if the assets of the plan are to be invested in the ICMA Retirement Trust. BE IT FURTHER RESOLVED that the Employer hereby agrees to serve as trustee under the Plan and to invest funds held under the Plan in the ICMA Retirement Trust; and BE IT FURTHER RESOLVED that the City Manager shall be the coordinator for the Plan; 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; may delegate any administrative duties relating to the Plan to appropriate departments; and BE IT FURTHER RESOLVED that the Employer hereby authorized City Manager to execute all necessary agreements with the ICMA Retirement Corporation incidental to the administration of the Plan. BE IT FURTHER RESOLVED that the Employer hereby authorized the City Manager to execute all necessary agreements with the ICMA Retirement Corporation incidental to the administration of the Plan. PASSED AND ADOPTED this _day of at Winter Springs, Seminole County, Florida , 19 _ in Chambers MAYOR, CITY OF WINTER SPRINGS FLORIDA ATTEST: CITY CLERK Attachment II 2 ICMA RETIREMENT CORPORATION PROTOTYPE MONEY PURCHASE PLAN & TRUST ADOPTION AG REEMENT #001 Account Number The Employer hereby establishes a Money Purchase Plan and Trust to be known as the City of Winter Springs City Manager Plan (the "Plan") in the form of the ICMA Retirement Corporation Protot'ype Money Purchase Plan and Trust. This Plan is an amendment and restatement of an existing defined contribution money purchase plan. o. Yes 9 No If yes, please specify the name o[ the defined contribution money purchase plan which this Plan hereby amends and restates: - NOT APPLICABLE . I. ' Employer: CITY OF WINTER SPRINGS, FLORIDA II. Prototype Sponsor: Name: ICN!A Retirement Corporation Address: 777 N. Capitol Street, N.E. Washington, D.C. 20002-4240 Telephone Number: (202) 962-4600 III. 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: OCTOBER 1. 1995 IV. Plan Year will mean: I!lC The twelve (12) consecutive month period which coincides with the limita- tion year. (See Section 6.05(i) of the Plan.) o The twelve (12) consecutive month period commencing on each anniversary thereof. and MPP Adoption Agreement 12/23/94 001-94 II V. Normal Retirement Age shall be age 55 (not to exceed age 65). VI. ELIGIBILITY REQUIREMENTS: 1. The following group or groups of Employees are eligible to participate in the Plan: N / A All Employees N / A All Full, Time Employees N / A Salaried Employees N/ A Non-union Employees N/ A Management Employees N / A Public Safety Employees N/ A General Erp.ployees N / A Other (specify below) CITY MANAGER ONLY The group specified must correspond to a group of the same designation that is defined ~n the statutes, ordinances, rules, regulations, personal manuals or other material in effect in the state or locality of the Employer. 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 N/ A (write N/A if an Employee is eligible to participate upon employment). 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.) VII. CONTRIBUTION PROVISIONS 1. The Employer shall contribute as follows (choose one, if applicable): Q Fixed Employer Contributions With Or Without Mandatory Participant Con tributions. II The Employer shall contribute on behalf of each Participant * % of Earnings or $_ for the Plan Year (subject to the limitations of Article VI of the Plan). Each Participant is required to contribute ** % of Earnings or $_for the Plan Year as a condition of participation in the Plan. (Write "0" if no contribution is required.) If Participant Contributions are required under this option, a Participant shall not have the right to discontinue or vary the rate of such contributions after becoming a Plan Participant. * EMPLOYER CONTRIBUTION 6% FROM JANUARY 96 TO SEPTEMBER 96. * EMPLOYER CONTRIBUTION 7% FROM OCTOBER 1, .1996. *** EMPLOYEE CONTRIBUTION 1% FROM OCTOBER, 1. 1996 MPP Adoption Agreement 12/23/94 001-94 The Employer hereby elects to "pick up" the Mandatory/Required Participant Contribution. a Yes o No [Note to Employer: Neither an opinion letter issued by the Internal Revenue Service with respect to the Prototype Plan, 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 pur' poses. The Employer may seek such a ruling. Picked up contributions are excludable from the Participant's gross income under section 414(h)(2) of the Internal Revenue Code of 1986 only - if they meet the requirements of Rev. Rul. 81,35,1981,1 C.B. 255. Those requirements are (1) that the Employer must specify that the contributions, although designated as employee contributions, are being paid by the Em, ployer in lieu of contributions by the employee; and (2) the employee must not have the option of receiving the contributed amounts directly instead of having them paid by the Employer to the plan.] o Fixed Employer Match of Participant Contributions. "NOT APPLICABLE" The Employer shall contribute on behalf of each Participant _ % of Earn, ings for the Plan Year (subject to the limitations of Articles V and VI 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 Em, ployer contributions, but a Participant may decline to make the required Participant contributions in any Plan Year, in which case no Employer contri, bution will be made on the Participant's behalf in that Plan Year. o Variable Employer Match Of Participant Contributions. "NOT APPLICABLE" The Employer shall contribute on behalf of each Participant an amount de, termined as follows (subject to the limitations of Articles V and VI of the Plan): _ % of the 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 includ, ing Participant contributions exceeding in the aggregate _ % of Earnings or $ ). Employer Contributions on behalf of a Participant for a Plan Year shall not exceed $ or _ % of Earnings, whichever is 0 more or o less. MPP Adoption Agreement 12/23/94 001-94 . 2. Each Participant may make voluntary (unmatched), after-tax contribution, subject to the limitations of Section 4.05 and Articles V and VI of the Plan. o Yes QO No 3. Employer contributions and Participant contributions shall be contributed to the Trust in accordance with the following payment schedule: BI-WEEKLY VIII. EARNINGS Earnings, as defined under Section 2.09 of the Plan, shall include: (a) Overtime o Yes [J No (b) Bonuses []i Yes o No IX. LIMITATION ON ALLOCATIONS If the Employer (i) maintains or ever maintained another qualified plan in which any Par- ticipant in this Plan is (or was) a participant or could possibly become a participant, and/or (ii) maintains a welfare ben:efit fund (as defined in section 419(e) of the Code) or an indi- vidual medical account (as defined in section 415(1)(2) of the Code, under which amounts are treated as Annual Additions with respect to any Participant in this Plan) 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 6.03 and 6.04 of the Plan). 1. If the Participant is covered under another qualified defined contribution plan maintained by the Employer, other than a Regional Prototype Plan, the provisions of Section 6.02(a) through (f) of the Plan will apply as if the other plan were a Master Prototype Plan, unless another method has been indicated below. o 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. ) "NOT APPLICABLE" a MPP Adoption Agreement 12/23/94 001-94 2. If the Participant is or has ever been a participant in a defined benefit plan main- tained by the Employer, and if the limitation in Section 6.04 of the Plan would be exceeded, then the Participant's Projected Annual Benefit under the defined benefit plan shall be reduced in accordance with the terms thereof to the extent necessary to satisfy such limitation. If such plan does not provide for such reduction, or if the limitation is still exceeded after the reduction, annual additions shall be reduced to the extent necessary in the manner described in Sections 6.01 through 6.03. The methods of avoiding the limitation described in this paragraph will not apply if the Employer indicates another method below. o Other Method. (Note to Employer: Provide below language which will satisfy . the 1.0 limitation of section 41S(e) of the Code. Such language must preclude Employer discretion. See section 1.415-1 of the Regulations for guidance.) "NOT APPLICABLE" 3. The limitation year is the following 12-consecutive month period: October 1 -Sept. 30 X. VESTING PROVISIONS The Employer hereby specifies the following vesting schedule, subject to (I) the minimum vesting requirements as noted and (2) the concurrence of the Plan Administrator. Years of Specified Minimum Service Percent Vesting Completed Vestin~ Requirements** Zero 100 % No minimum One 100 % No minimum Two 100 % No minimum Three 100 % Not less than 20% Four 100 % Not less than 40% Five 100 % Not less than 60% Six 100 % Not less than 80% Seven, or more 100 % Must equal 100% (**These minimum vesting requirements conform to the Code's three to seven year vesting schedule. If the employee becomes 100% vested by the completion of five years of service, there is no minimum for years three and four.) XI. Loans are permitted under the Plan, as provided in Article XIV: l[J Yes o No MPP Adoption Agreement 12/23/94 001-94 I XII. 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. XIII. The Prototype Sponsor hereby agrees to inform the Employer of any amendments to the Plan made pursuant to Section 15.05 of the Plan or of the discontinuance or abandonment of the Plan. XlV. The Employer hereby appoints the Prototype Sponsor as the Plan Administrator pursuant to the terms and conditions of the ICMA RETIREMENT CORPORATION PROTOTYPE MONEY PURCHASE PLAN & TRUST. The Employer hereby agrees to the provisions of the Plan and Trust. Xv. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption Agreement may result in disqualification of the Plan. XVI. An adopting Employer may not rely on a notification letter issued by the National or District Office of the Internal Revenue Service as evidence that the Plan is qualified under section 401 of the Internal Revenue Code. In order to obtain reliance with respect to plan qualification, the Employer must apply t6 the appropriate key district office for a determination letter. This Adoption Agreement may be used only in conjunction with basic Plan document number 001. In Witness Whereof, the Employer hereby causes this Agreement to be executed on thi~ day of , 1?_. EMPLOYER Accepted: leMA RETIREMENT CORPORATION By: By: Tide: Title: Corporate Secretary Attest: Attest: II MPP Adoption Agreement 12/23/94 001-94 Attachment II 3 lCMA RETIREMENT CORPORATION ADMINISTRATIVE SERVICES AGREEMENT Type: 401 Account Number: Plan # 9604 IOH RETlRE:\fENT 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 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; ~C 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. Appointmp.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. Arloption of Tn l~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. Employp.r DI'ty to Fllrni~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 # 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 benefici~ry 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.rtrlin Rp.rrp.sp.ntrltions, Wrlrrrlntip.~ rlnn Covp.nrlnts 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 !nvestment 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 emplqyer 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 shall 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. P::Jrtidr::Jtion in Cp.rt::Jin Pror.p.p.ding,c:; 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. Comrp.n,c:;rttion ::Jnd P::Jymp.n:t (a) Plan Administration ~ee. 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. (c) Annual Plan Fee. There shall be an annual Employer fee of $500.00. The annual Plan Fee will be billed evenly on a quarterly basis and is payable within 30 days of receipt of billing. Plans which are initially established midyear will be billed on a pro-rata basis. (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 assesseq 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~tnny 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.~rnn~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.nrlmp.nt~ ::Jnn Arljll~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 . Notir.p-~ All notices required to be delivered u.nder 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. Comr1p-tP- Agrp-p-mp-nt This Agreement shall constJtute 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 ~ach 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~w 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 IC:\<IA RETIRDIENT CORPORATION 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 RETIREMEN1 CORPORA TION by: Stephen Wm. Nordholt/Date Corporate Secretary . - 8 - 457 DEFERRED ~COMPENSATION PLAN Attachment II 4 A RESOLUTION OF THE WINTER SPRINGS, FLORIDA CITY cOMl\1ISSION (El\tIPLOYER) PROVIDING RETIREMENT BENEFITS TO THE CITY MANAGER THROUGH THE INTERNATIONAL CITY MANAGEl\tIENT ASSOCIATION RETIREl\tIENT CORPORATION WHEREAS, the Employer has employed a City Manager 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 the City Manager, 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; l'iow 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; . BE IT FURTHER RESOLVED that the Employer hereby executes the Declaration of Trust of the leMA 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 the 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 Chambers at Winter Springs, Seminole County, Florida. 19 10 l\tlA YOR, CITY OF WINTER SPRINGS FLORIDA ATTEST: CITY CLERK '; Attachment II 5 ICMA RETIREMENT CORPORATION -_'1-... . .. ......~. ': .:'--. . 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 R~tirement 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 rnvestment 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 leMA RETIREMENT CORPORATION 'I;." 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. Arloption of Tn J~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. Employp.r Duty to Fllrnish InformMion 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 ICMA RETIREMENT CORPORATION . l .: .~.. 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.rtrlin Rp.rlrp.sp.ntrltions. Wrlrrrlntip.s rlnn COVfmrlnts 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 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. P~rtir.ip<Hion in Cp.rt~in Pror.p.p.rlino~ 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. Compp.n~Mion ~nd P~ymp.nt _ (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 Fund 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 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) 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 ICMA RETIREMENT CORPORATION 7. CII~tOrly ._,..-;- ,,-..0' 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.~ron~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.nrlmp.nt~ t=lnrl Arljll~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, power or privilege hereunder shall operate as a waiver of such right, remedy, power or privilege. 11. Notir.p.~ 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; (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. 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, dutfes 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 Lrtw 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 RETIREMENT CORPORA TION by: Stephen Wm. Nordholt/Date Corporate Secretary - 7 -