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HomeMy WebLinkAbout1649 RESOLUTION NO. 1649 A RESOLUTION adopting a Deferred Compensation Plan for the City of Bremerton and appointing a committee to administer the plan. WHEREAS the Revised Code of Washington, 41.04.250, authorizes Washington City Governments to enter into agreements to provide deferred annuities for officials and employees of the Cities, and WHEREAS the RCW further provides that the city govern- ments may enter into contracts with city officials and employees to defer a portion of the employees income for the purpose of funding a deferred compensation plan, and WHEREAS the Internal Revenue Service has approved the deferred compensation plan developed for the City of Bremerton, a copy of which plan is attached to this Resolution; NOW THEREFORE BE IT RESOLVED THAT: The Deferred Compensation Plan attached hereto marked as Exhibit A, entitled "City of Bremerton Deferred Compensation Plan", and consisting of nine numerical pages, all of which hereby is by reference made a part hereof, is'hereby adopted by the City of Bremerton. A committee consisting of a City Attorney, one member of the Civil Service Commission and one member of the Planning Commission is hereby created to administer the Deferred Com- pensation Program; A special fund known as the "Deferred Compensation Plan Fund" will be created by Ordinance to receive the sums deferred from the salaries of participants in the plan. ADOPTED by the City Comncil of the City of Bremerton, signed by the Mayor and attested by the City Clerk in authenti- GLENN K. JARSTAD, Mayor ATTEST: G. C. YEADON, SR., City Clerk r "] i EXH3 IT "A" · ' ' ~ESOLUTION 1649 CITY OF BREMERTON DEFERRED COMPENSATION PLAN NAME OFPLAN The name of this plan is the City of Bremerton Deferred Compensation Plan and hereinafter is referred to as "Plan". II. PURPOSE The purpose of this Plan is to secure the benefit of Employees' future services, knowledge and experience by permitting the employees, elected officials, and other parties related to Employer by contract, to participate in this Plan whereby any pertion or all of their c~npensation may be deferred to provide retirement, disability and death benefits. III. DEFINITIONS For purposes of this Plan, certain words or phrases used herein will have the following meaningsz 1. "participants shall mean those eligible employees or other parties related to Employer by contract who have executed a Participation Agreement. 2. "Employer" shall mean City of Bremerton. 3. "Compensation" shall mean the total amounts of all payments made by the Employer to an Employee, elected official or other parties related to Employer by contract, for services rendered to the Employer but shall exclude benuses and overtime pay. 4. "Deferred Compensation" shall mean the amount of compensation not yet earned, which the Participant and the Employer mutually agree shall be deferred in accordance with the pro- visions of this Plan. 5. sDisability" shall mean the complete and permanent inability of the Participant, due to injury or sickness, toperform the important daily duties of his principal occupation as deter- mined by the Coeunittee. 6. *Normal Retirement" shall mean Participant's retire- ment from service with the Employer which shall be effective on the first day of the month after the Participant meets the age and service requirements for normal retirement specified in the Retirement Plan for the Employees of the Employer. 7. "Early Retirement" shall mean Participant's retire- ment from service with the Employer which is effective prior to the Normal Retirement date, pro- ~,' vided the Participant meets the age and service requirements for early retirement specified in the Retirement Plan for the employees of the Employer. 8. elate Retiremente shall mean Participant's retire- ment from service with the Employer which becomes effective after the Participant has exceeded his normal retirement date specified in the Retirement Plan for the employees of the Employer. 9. "Termination of servicese shall mean the severance of the Participant's contract or employment with the Employer prior to retirement. i0. "Committee" shall mean an administrative unit consisting of three persons appointed from time to time by the Employer which shall have the duties defined in this Plan. ADMINISTRATION This Plan shall be administered by a Deferred Compensation Committee, hereinafter referred to as eCoTmnittee", established by a resolution of the Employer. 1) Employer shall disburse those amounts which arise from duly executed Participation Agreements in accordance with instructions from the Committee. A duly executed Participation Agreement, in substantially the form as Exhibit A attached hereto, shall bear the signatures of both the Participant and a Committee ___m~mber. Each participating employee's Participation Agreement shall bec~ne a part of this Plan and is incorporated herein by this specific reference thereto. 2) All assets held and invested hereunder shall be held by and in the name of the Employer. Assets of this Plan shall at no time be vested in any Participant or beneficiary for whose benefit an account is or may be maintained. 3) An individual account shall be maintained in the name of each Participant. The maintenance of such accounts and the amounts credited to it shall be for purposes of accounting only. -2- ~) Account assets hereunder may be invested in fixed or variable life insurance or annuity contracts issued by IDS Life Insurance Company or any other investments as determined and approved by the Committee, provided, however, that no such investments shall be made in violation of applicable statutes. The Participant may advise the Committee of his investment or benefit preference for the amount credited to his account but the Committee shall at its own discretion make the final investment determination. 5) With respect to each account hereunder, all dividends, interest, gains, rents and other increments thereon, shall be credited to such account, and the assets of each account shall be valued not less than once each year at Fair Market Value. 6) The Committee shall have the authority to appoint such administrative agents or agencies as it deems advisable or desirable, to carry out the terms and conditions of this Plan. 7) Employer shall not be responsible for any loss dne to the investment or failure of investment of ~unds and assets in said deferred compensation account nor shall employer be required to replace ~ny loss whatsoever which may result from said investments. ~ 8) The Committee shall assume or incur no obligations hereunder except to exercise due care withI respect to the assets from time to time in their custody hereunder pending application thereof as provided in this Agreement and to exercise due diligence in carring out their duties and functions under this Agreement. The Committee shall not be liable for any loss unless'such loss is caused by a breach of its obligations under this Plan. ELIGIBILITY Any Employee or other party related to Employer by contract who is designated by the Employer shall be eligible to participate in Plan. VI. PARTICIPATION The Participany must agree to defer only compensation that is not yet earned as of the date of the execution of the Participation Agreement. He ~urther must agree to defer not less then $25.00 per month. An eligible person may only elect to become a participant beginning the calendar year following the calendar year of execution of a Participation .Agreement. However, for the first year in which the Plan is implimented or for the year in which a new Employee or other person first becomes eligible to participate, such person may elect to participate on the first day of the first month following the execution of a Participation Agreement, provided he executed the Participation Agreement within a reasonable time after the election to participate becomes available to him. -3- Further, an employee may elect to increase or decrease the amount of compensation he wishes deferred for compensation earned after the beginning of the subsequent calendar year. Such election is to be made prior to the calendar year in which it is to take effect. BENEFITS A. In the event of early, normal, late or disability retirement or termination, the Committee will apply the then value of the amount credited to the Participant's account in accordance with one of the following settlement modes elected by the Employee at the time he became a Participant. 1. Settlement modes as under a qualified annuity contract which may be used to measure benefits to the Participant as elected in the Participation Agreement. 2. Monthly, quarterly, semi-annual or annual installments of such nearly equal amounts, based on the ~mount credited to Partl- cipant's account at the time such payments commence, subject to readjustment as necessary from time to time, ss will be required to exhaust Participsnt's interest over a specified period of years designated by the Employee at the time he be- comes a Participant, such period not to exceed Psrticipant,s life expectancy, and commencing on the first day of the month following such retirement or termination. 3. Lump sum distribution on the first day of the month following such retirement or termination. With regard to early retirement or termination, the Employee, at the time he becomes a Participant, may elect subparagraph 2 above and defer distribution under that provision with payments commencing on the first day of the month following the Participant,s 65th birthday. B. In the event of the Participant,s death prior to the commencement of his deferred compensation benefits, the Employer agrees to pay death benefits for 60 or 120 consecutive months with payments commencing on the first day of the month following the Participant,s death or in a lump sum. The Employee must elect one of these modes of settlement at the time he elects to participate in this Plan. Such payment shall be made to the Participant's designated beneficiary. In the event of the Participant's death after the commencement of his deferred compensation benefits but prior to the exhaustion thereof, the Employer agrees to pay the balance of the account to the Participant,s designated beneficiary. The Participant shall have the right to designate a beneficiary and from time to time change such designation by written notice delivered to the C__~nm.~.ittee. If there is no designated beneficiary surviving when a payment is due, payment of any benefits shall be made to his spouse if living~ if not, to the executor or administrator. C. The Coemnittee may purchase fixed or variable annuity contracts issued by a company authorized to engage in the business of issuing fixed or vari- able annuity contracts for retirement or termination. In such case, the Employer will be the sole owner and named beneficiary of the annuity contract to the extent that the account allocable to any Participant includes such contracts, and the mode of benefit payment shall be any mode provided for by such contract. The Employee must elect one of the specified modes of settlement in the annuity contract at the time he elects to participate in this Plan. Due to unforeseeable financial obligations resulting in real emergencies beyond the Participant~s control, and after other sources of financial relief have been exhausted, a Participant may apply to the Co~nittee for withdrawal from the Plan prior to retirement or other termination of the Participant's service with the Employer. If such application for withdrawal is approved by the Committee, the withdrawal will be effective at the later of the date specified in the Participantts application or the date of approval by the Committee. The Committee may elect to honor a request from the Participant to pay the amount of money determined as if the Participant had terminated his services if such request by the Participant is made and honored by the Committee, the Committee in its discretion may make payments in a lump sum or in five substantially equal annual instaliments thereafter. Withdrawals for foresee- able expenditures normally budgetable such as down payments on a home or purchase of an auto or college expenses will not be permitted. Any an~unt withdrawn shall at no time be greater than the amount necessary to relieve the unforeseeable financial obligation. AMENDME, NT AND TEPa4INATIO~ Employer may amend this plan at any time, provided, however, that no amendment shall affect the rights of Participant or his beneficiaries to the extent of any amount deferred at the time of the amendment, adjusted for inves~ment experience. Notwith- standing any other provision of this plan, Employer in its sole discretion, may terminate this Plan and discharge in full its obligations under Plan to all Participants or a Participants' beneficiaries by distributing to such Participants or beneficiaries an amount equal to the value of the Participant's account. -5- NON-ASSIGNABILITY Neither Participant nor his beneficiary shall have any right to sell, assign, trans- fer or otherwise convey the right to receive any payment hereunder~ nor shall any such payments be subject to attachment, garnishment or execution of any kind in connection with any claim against Participant or his beneficiary. PROHIBITION A~AINST INTEREST Any funds or assets, including increment and accumulation thereon, acquired by Employer as a result of any Participants' deferral hereunder shall be an asset of the Employer and subject to Employer's ownership until such time as such funds or assets are actua211y distributed to Participant or his designated beneficiary in accordance with the provisions hereof. It is expressly understood and agreed that neither the Participant nor his beneficiaries shall have any right in or to such funds or assets and that such funds or assets shall be subject to the claims of Employer's creditors. The obligation of the Employer to Participants or their designated beneficiaries for the benefits provided for hereunder is a contractual obligation only. Participants and their designated beneficiaries have no claim by way of trust, escrow, annuity or otherwise in or to any specific assets held by Employer. XlI. APPLICABLE LAW This Plan shall be construed under the laws of the State of Washington. IN WITNESS WaEREOF, Employer has caused this Plan to be signed and attested on this day of by a duly authorized person. Attest~ Title Employer -6- hibit A APPLICATION TO PARTICIPATE IN THE CITY OF BREMERTON DEFERRED COMPENSATION PLAN TO: Deferred Compensation Committee Beginning I wish to participate in the Deferred Compensation Plan to the extent of $ per month subject to the terms and con- ditions of the Plan. I wish to designate the following beneficiary (or bene- ficiaries) in accordance with the Plan: (Show name, re- lationship and address). (If the designated beneficiary is other than the par- ticipant's spouse, consent of said spouse is required in community property states). Write your initials in the space opposite your invest- ment preferences. as a fixed annuity only as a variable annuity only combination fixed and variable annuity % fixed and % variable mutual funds other -7- Upon the occurrence of a~ event calling for distribution of benefits under Section VII of the Plan elect on this date to receive ~id benefits in the following manner indmcated by placing an X in the squ~re opposite the elected mode of distribution Section VII BENEFITS EARLY RETIREMENT Annuity Other A. settlement modes as under a A. monthly, __quarterly, ..... ' 'semi-annually, or qualified annuity ' annual installment Life Income-No Refund "payments commencing on ~ Life Income with 5 ., 10 , or 15 years early retirement certain date or deferred to 3) Life Income with Refund 65th birth'day for a 5~1 Joint and Full to Survivor period of years. Joint and Two-Thirds Survivor B. lump sum B. lump sum NORMAL RETIREMENT Annuity Other A. settlement modes as under a A.__ __monthly, quarterly, .... qualified annuity semi-annual, or Life Income-No Refund annual installment 12~ Life Income with 5 ., ' . payments commencing on lO , or 15 years " normal retirement ' ' date or deferred to certain Life Income with Refund 65th bir~hd'ay for a .... Joint and Full Survivor period of years. ii . Joint and Two-Thirds Survivor B. lump sum B. lump sum LATE RETIREMENT Annuity Other A. settlement modes as under a A.__ monthly, quarterly, qualified annuity . semi-annual, or l) Life Income-No Refund annual installment on 2) . Life Income with 5 , payments commencing on iO ...., or 15 . years' l~te retirement certain date 3) Life Income with Refund ~)'Joint and Full Survivor 5 ) ~ '...Joint and Two-Thirds Survivor B. lump sum B.. .... lump sum -8- DISABILITY Annuity Other A. settlement modes as under a A. monthly, quarterly, qualified annuity semi-annually, or l) Life income-No Refund .... annual installment 2)"'~fe Income with 5 , "'~ayments commencing on lO ., or 15 years disabiIity retire- cert'ain ment date or deferred Life Income with REfund to 65th birthday for a Joint and full to Survivor period of years. i~ Joint and Two-Thirds Survivor B. lump sum B. lump sum TERMINATION Annuity Other A. settlement modes as under a A.__ __ monthly, . quarterly, " qualified annuity . semi-abbyakm ir l) Life Income-No Refund annual installment 2) ' Life Income with 5 , payments commencing on ' termination date lO , or 15 years certain or' deferred to Life Income with Refund 65th birthday for a . Joint and Full Survivor period of years. i} Joint and Two-Thirds Survivor B. lump sum B. lump sum 6. Death A. 60 consecutive monthly payments B. 120 consecutive monthly payments C. lump sum I acknowledge receipt of a copy of the Deferred Compensation Plan and confirm that I have reviewed and understand all of the terms and conditions thereof. Signed Signed Committee Member Employee Home Address Dated Dated -9-