CC Resolution No. 8594 , ~
.
• ~ .
RE90~]TICI~i N0. 8594 ~
A RE90I~JTI(8J OF THE CITY OOUNCIL OF THE CITY CUPE[~i'Il~
AUI3i~RIZING E~C,VI'ICd~T 0~' DEF~LtRID OQ~IIdSATICd~1 PiAN, PART-TIl~
~ SF~L ZII~O~RARY II~'L(7YEES
WF~RE',AS, Deferred C~nsation Plan for part-tim~e seasonal te~rary
es~Qloyees has bee.n presented to the City Council; and said plan having
been approv+ed by the City Managex and the City Attorney:
13~OW, Tf~REE~ORE, BE IT RE90~,VED, that the Mayor and the City Clerk are
hereby authorized to execute the plan herein referred to in behalf of the
City of C1~ertir~o . ~
PASSID AND ADO~'I~:D at a zegulmr meeting of the City Council of the
C.ity of C~pertino thxs~ 18th c3ay of Feburarv , 1992 by the follaiwing
wte:
vate Mesnbezs of the City Co~mcil
AYES: Dean, Goldman, Koppel, Szabo, Sorensen
NOES: None .
ABSF~V'I': None
ABSTAIN: None
AP'PRWID:
. . / ~ -
yor, City of
ATI~ST:
City Clerk ~
~ CITY OF QJPEE~I'a10 ~
? .
. DEFERF2ID OCk'~'IIJSATION P'LAN
PARI~TIME SEA.SONAL TII~IF~ORARY
. This DEFE~FD OC~F3ISA~.LON PIAN - PAR'1'-TIME, SEASONAL, TEM~ORARY, as
amF'-rbcled by Amer~nent No. 1, was established and adopted by the City of
Clipertino as of March 1, 1992, for the benefit of its Eligible E~nployees.
I
N~1ME P,iJD PURP06E
1.01 Name. ~e name of this plan is the CTI'Y OF QJPII~INO DEFEF2RED
. OCd~'E~TSATION PLAN PAF~1'-TIl~, SFASC~,L, TF3~~ORARY (hereinafter ~ referred to
as the "PS`r PIAN~~) .
1.02 ~e primary pur~ose of the "Plan" is to establish and
~ operate a"retirement systeta~~ satisfyiryg the requir~zts of Section
3121(b) (7) (F) of the Internal Revernze Code of 1986, as ~nerided f~can time
to time (hereinafter referred to as the "Code") ProPosed Section
31.3121(b)(7)-2 of the Inoc~~ Tax Regulations prcamilgated thereunder~ and
corresponding provisions of the Social Security Act. This shall be
acac~lished by the use of a deferred oartq~etLSation plan eligible wzder
Section 457(b) of the Oode. Zhe plan shall be inte,rpreted, achninistexed
~ and operated in a manner consistent with the provisions of IRC Section
3121(b)(7)(F) amd the requireme~zts of regulations issued thereunder,
II ~
DEFIl~ITIONS
2.01 ~~Ac~ninistrator'~ shall mean the City Managex or his/her designee.
2.02 "Beneficiarv'~ sha11 mean beneficiaYy of the Participant, his/her
estate, or any other person wtiose interest in the plan is derived frca~? the
participation as designated by the Participant. Absent a Beneficiary
~~5 ~19~~ ~e estate shall be the Beneficiary. The designation of
the Beneficiazy shall be revocable unless otherwise prwided in the
Particigation Agree~nent. .
2.03 "Code" shail me~n the Internal Reverrue dode of 1986, as amended
f~n t~me to tim~e• Refererice to a specific ~sec~tion of the Code shall
ir~lude ariy ~latian(s) ~ prnaailgated thereur~der, arid any future
legislation amex~]ing, suPPl~entirx'J, or S~seding such Section.
2.04 "~oa~e~Sation" shall m~-ui the base pay paid by the II~loyer for
se~vices rer~ered to the IItq~loyer for services during a Plan Year as
defined in 26 (FR SECTIpN 31.3121(b)(7), withaut deduction for any portion
thereof deferred iu~der the provisions of this Plan, Sec,-tion 403 (b) or
other pravisions of the C7ode. Carnpensation shall be taken into aocowzt at
its present valwe.
2.05 "Deferrad ~ensation" shall mean that portion of an II~loyee's
Includi.ble ~zsation which such IInployee defers in aocon~ance with the
pravisions of this Plan. Deferr~ed ~LSation shall be t~k,en into
aocounts at its present value,
- 1 -
,
r
. 2.06 "Deferred Compensation ~uid" shall mean the total amount of
Defexred C~ensation including interest and other amount accrued
therefrarn froan all Participants, which amount shall be held as a part of
the general assets of the II~loyer.
2.07 "Eligible Deferred Compensation Plan" shall mean a plan
described in Code Section 457(b).
2.08 "Ft~mloyee" for purposes of this agreetnent only, shall mean any
person e~loyed by the II~layer, who is not a member of any City
retirem~ent system. Eligible e.~loyee shall mean only those Eltiployees who,
at any time during which the employer maintains this Plan, are not
accruing a benefit under Social Security or another Retirement System
pravided and maintained by D~loyer which meets the minimtnn requirements
of the regulations prcnmilgated w~der IRC Section 3121(b) (7) (F) . II~loyees
shall include all active and inactive employees until t.ermination of
em~loyment. II~loyees shall exclude all em~loyees otherwise exe~ted
under IRC Section 3121(b) (7) (F) (i)-(v) .
2.09 "D~pl yer" shall n~ean the City of C1ipe,rtino, a municipal
corporation, under the laws of the State of California.
2.10 "Elnployment Feriod" or "Pay Feriod" shall mean the Bi
Weekly
period established by the II~loyer during which occurs sezvice of an
II~loyee upon which C~~ation is based.
2.11 "~rollment Feriod" shall mean the first day of employment for
new e~loyees arid March 11, 1992 for currently eligi.ble employees.
2.12 "Includible Gcmtpensation" shall m~ean c,cm~pex~sation which (takiix~
into account the provisions;of,Code Section 457) is curr~ntly includible
in gross inccmie for federal~income tax puiposes. Amount of Carnpensation
for this purpose shall be determined without rega~l to ~rnm~ity propexty
laws.
2.13 "Normal Retireme.nt Aae" shall mean the earlier of:
(a) Age 70 1/2; or
(b) The age at which each respec~tive Participant has the
right to retire wxler the pravisions of the PERS as naw in effect or as
the same may be amended frc¢n time to time without the Ett~loyer's consent
and to receive i~ediate retiremetzt benefits without actuarial or similar
reduction ber.ause of retirem~ent before sartie specified age in the said
plan; for a participant who continues in City se,rvice after age 70 1/2, ~
Normal Retirement Age shall be the age at which the Participant separates
frcan service with the City.
2.14 "Participant" shall mean any II~loyee who has fulfilled the
requirexnents of enrollment in the Plan. ,
2.15 "Participation Account" shall mean the book account for each ~
e~loyee to whirh is credited the Participant's DeferYed ~~tion,
together with any interest, or debited thereto..
; - 2 -
~ 1 .
. I '
. 2.16 "Particination Arranctement" shall mean the written agreement
• executed arid filed by an E~loyee with the bnployer pursuant to Section
3.01, under which such IInployee becx~es a Participant in the Plan.
2.17 "Plan" shall mean this City Deferred Cc~ensation Plan -
Part-time, Seasonal, Ten~orv:Y•
2.18 "Plan Year" shall mean a caleridar Year.
2.19 "Service" shall me.~n ! e~loym~zt of an Dmployee by the Ettq~loyer.
2.20 "Separation from Service" for an En~loyee shall have the same
msanirig as is given w~der Code Section 402 (e) (4) (A) (iii) relating to liunp
s~nn distributions, this includes, but is not limited to termination of
employment, death, retirement for reasons of age or permanent disability.
2.21 "State" shall mean the State of California or any political
subdivision thereof.
2.22 Other Definitions; All other texms in this Plan, as naw in
effect or thereinafter ame.nded, which are not defined herein shall be
intexpreted ar~cl defined witYiin . the meaning given thereto by the code and •
applicable State statues, as ame.nded fram time to time.
' III
PARTICIPATION
3.01 Eligibilitv. Cc~ensation shall be deferred for any calendar
month after a Participation Arrangment praviding for such deferral has
been entered into by the ~loyee and the ~inployer. An e~loyee who
qualifies as an eligible e~loyee shall~ be eligible to participate
itmnediately. ~
(a) Ehrollment Feriod. An ~loyee becar~es a Participant in the
Plan by executing a Participation arrangemeizt and filing it with the
II~loyer, all Eniployees must execute such an agreemexit. The Participation
Arrangeme.nt shall be effective i~iately and shall continue and remain
in full force for the full term of ex~loyment with the City. An eligible
e~loyee who terminates e,~loyment during the Plan Year shall still be
eligible to participate during such Plan Year up until the date of
t.exmination.
3.02 Amount of Deferral. Each participant in the Plan shall defer an
amount equal to 7.50~ of his%her C~tion for all Plan Years in whirli
they are eligible II~loyees. An eligible e~loyee's Vestirig arxl
distribution rights on the ~date of his death or "P~ermanent and total
Disability" will be the same as the vesting ar~d distribution rights
applicable on the date of attairmient of Norman Retiremerit Age. An
eligible em~loyee's account shall be 100~ vested at all times so as to
meet the minimm~n requiremez~ts for a retirement system within the meaning
of Section 3121(b) (7) (F) of the Int,ernal. Revenue Code and the regulations
issued thereunder.
3.03 Election of Method~of Distribution. Each Participant may elect
distribution.
i
I
- 3 -
~ 3.04 Effect of E~cecution of Participation 1~r~~
t. Each
Participant shall be deemad to have assented to all the terntis and
conditions of the Plan ~on exec~ition of a Participation Arrangeme.nt,
E~ccept as othexwise e~res.sly provided herein, no Participant or
Beneficiazy shall have the powe,r or right to se11, tran.sfer, assign,
hl'P°~e~~ or othexwise dispose of all or ariy part of the Participant's
benefit derived hereur~der. A vapy of this Plan shall be made available to
each e~loyee prior to execution of the Participation Agre~n~nt. '
3.05 Effect of Oonurninity property Iar„~s on Participant's Intere,st in
the Plan. If the Participant's inte~est in the Plan is c~mminit~, Prope~ty
of the Participant ar~d the Participant's spouse, in whole or in part and a
~m~nitY P~Y ~~st ~is aw~rded, in whole or in part, to the
Participant's spouse p~ursuant t.o prooeedir~q for legal separation,
dissolution, nullity or other prooeedinq to tenpinate th~e marriage, then
that portion of the Participant~s interest the Plan awarded to the
Participant's spou.se shall be,paid to the parti~ipants Spa~~ u~d~. ~e of
the options described in Section 6.01; provicled that the amaunt so paid
shall not exceed the dollar attn~unt of the Participant's benefits hereunder
and further provided that the amaunt of deferred ~Sation credited to ~
the Participant shall be rechioed aacozdirygly. ~ If the Participant's
interest is beir~g distributed to the Participant in any manner other than
by way of a single payment at the time the participant's spause is awa~ied
a ocummuzitY P~Y int.erest therein, then the II~loyer shall, at its
discietion, PaY such .inte,rest awan3ed to the ParticiPant's sPause bY the
sam~e method by which such fur~ds are beiryg distributed to the Participant.
Pravided that the payments to the participant shall be reduced
aoco~dir~gly.
IV.
~ T Tn~rr'r'n'T'TON OF
DEFII2RAL OF ~1SATIpN
4.01 Reaular Yeazs. Durir,q each nig,l~yment Perioa in whirh an
e~loyee is a participant in the Plan, the II~layer sha11 defer payment of
the Participant's ~~at:ion as is specified in the Participant's
Participation Arrarig~ent. No Participant may defer under the Plan during
a Ta~ble year more than the lesser of:
(a) Seven Zhausand Five Hundred ($7,5000.00); or
Ccm~ensation; or, ~~3 ) of the Participant ~ s Includible
(c) ~1n amount equal to 7.50~ multiplied hy the ba_se wage
for Social Security then in effect during the year of contribution.
4.02 Particibants in More than one Defe.rred ~sation Plan. A
Participant who participates ui more than one deferreci ~en~sation ~~type~~
plan, whether or not a~aintained by the II~layer, ~u.st allocate the dollar
lunitation amoryg the plans as defined in the C~ode in which he or she
participates.
~
, - 4 -
_ i
V.
~ A~'II~iISTRATION OF THE PLAN .
5.01 Designation of an Ac~ninistrator. Zhe Plan shall be
by the City Manager ar~d or hi.s/her designee. Zhe City Manager shall have
full authority and power to adopt the rules ar~d regulations for the
ac~ninistration of the Plan, aryd to interpret, ameryd, alter, ar~d revoke any
rules arid regulations so adopted.
5.02 Rights and Duties. Zhe Ac~inistratAr shall enforoe this Plan in
acoord~noe with its tern~s ar~d shall be charged with its general
achninistration. ~e Achninistrator shall ex~cise all of his/her ~
discretion in a unifoYm maruies ar~d shall have all riecessaYy power to
accc~iplish those p~irposes, includinq but nat limited to.the pawer:
(a) Zb det.enau~e all questions relatirx~ to the eligibility of
II~layees to participate;
(b) Zb o~te ar~d oertify the amount and kind of benefits
~ payable to Participants ar~d their Ber~eficiaries; ~
~
~ (c) Zb maintain 'all data, reoords, doc~mtients and PaPe~'S
P~'~i ni m to the achninistration of a Plan;
~
(d) Zb aut,~wrize all i' ts frcea the Irrvestrnent FLmd;
(e) S~bject to the li.mitations set forth in Section 5.06, to
direc.-t the im~estinent to be made in a manner consistent ~ with the
investinent authorized by this Plan; and
( f) Zb reo~¢nerxi i such rules for the regulation of the Plan as
are oonsi.stent with the tern~s hes~eof.
5.03 Advioe. Consultation arid Delegation of Authoritv. The ~loyer
may em~lby or oantract with ariy one or more persatLS or organizations to
render v~r~sultati~ ar~/or advioe ar~/or to perform servioes with rega~l .
to responsibilities of the City Manager w~der the Plan. Said Consultant
~hall be selected by the F~layer after oansideration of reo~ndations
by the City Manager. Zhe; Oor~sultant shall be gwerned by the City
Manager. .
5.04 Defen~ed Oaa~en.sation F1u~d. ~e City shall establish a deferred
c~ation fund entitled '!City of C~ertino Deferned C~en~~ation - ~
Part-time, Seasanal, ~oraxy fur~d~~ to which all deferred oontributions
shall be aredited at such tin~es as the ~LSation wwld have been
payable to individual e~layees if riot a participant in the Plan.
Separate .book aoooiuits will be established for each e~loyee participating
which will show the amotmt~ of deferred ~sation oantributed and
iriterest earned by th~e aooaunt. Each boak aooo0.uit will be valwed at least
quarterly. Zhe City will fl~rn~ edCh Pd~1C1p321t S~d~3tIP.1'1tS of his or
1'1P~' dO00U1$ WZ11Ct1 Wlll . CilSC.l06@ ~ tOtdl 3IC10U1'lt'S C~2feL'Z~ dllC~ lIN2.StEC1, .
the e.ariliI~gs os1 SuCh amrn.ults~ at7d the bala2lce iI1 the 3ooatu'lt.
- 5 - ~
I
, 5.05 Disclaimer. Neither this Plan nor any Participation arrangement
• nor any book aocount shall be deemed to have cre.ated a tn~.st or custodial
account on behalf of, or for the benefit of any participant of the Plan or
his/her beneficiaries. No participant of the Plan or his/her
beneficiaries shall have, by reason of the Plan, Participatirig arrangement
. or book ac~count, any secured or preferred interest in, or to, any assets
of the employex. The e~loyer shall have a contractual obligation to pay
the benefits due to the participant under the Plan.
5.06 Eligible Im~estment Objectives. The E~loyer.shall invest
deferred ~~sation bi~aeekly in available irivestrnent vehicle which will
earn interest at a reasonable rate. ALL AMOUNTS OF DEFERRED ~INSATION.
SHALL AT ALL TIl~S BE AND RE~IlJ AS ASSEI'S OF Tf~ Et~IAYII2. Any and all
interest or other incca~e payable on any of the E~loyer's investments of
deferred oc~er~sation also s1ia11 be an asset of the E~nployer but shall be
credited to the Participants book account.
5.07 Cost of Achninistration. The E~nployer shall pay reasonable
ac~ninistrative c~sts associated with this Plan. ~
. I
5.08 Amenchtient of the Plan. The•employer may, at any time and fram
ti~ to time, modify the Plan in whole or in part or cease deferrinct
~sation pursuant to the Plan, by deliveri.ng to each Participant a
written oopy of such modification ~~x~ation; provided, however, that
the II~loyer shall not have the right to reduce or affect the value of any
Participant's book aooount or ariy rights acc~ued wider the Plan prior to
such ~dification, amenc~nent or' ces.sation.
VI.
DISTRIBCFPION OF BII~IEEFFI'I'S
6.01 Distribution General, Notwithstanding any other pravision(s) of
this Plan, all distri.butions will be made in accon~ance with Code Section
401(a) (9) , as amerided frcan tim i to time.
6.02 Distribution After Separation From Service.
~ (a) Payout Options~ In the event of a Participant's Separation
froQn Sexvice, the balance of the Participant's Participation Account shall
be distributed to the Participant, in any one or more of the following
methods so elec,~ted by the Participant, subject to the II~ployer's
discretion: I
1. I~.mip 5'tnn Payment. Without the Participant's consent, upon
texmination of e~loymelzt ttie total balance payable in one cash paymen
where the amount payable is less than $3,500; or upon separation from
service with Participant's consent.
2. Upon Retireme.nt Payments for a Specified Feriod - Particinant
as Recipient. Annual, semi-annual, quarterly or ~nthly payments to
Participant wer a term not to exceecl the life expectancy of the
Participant, in amounts calculated to liquidate the Participant's
participation aooount as of;the last payment. In the event of the death
of the Participant before the end of the selec~teci term, the payments will
continue to the desicptiated IBeneficiary for a period not exceeding the
lesser of (A) the life of i
e designated Beneficiary (or shorter period
I - 6 -
~
select.ed by the Participant' froan available aptions). If the designated
. . ~beneficiary is the P~articipant's spotLSe of (B) fifteen (15) years, if the
designated beneficiaYy is nat the Participant's spcxa~~e.
3. Payments for a Specified Period - P~rticipant and~
Participant's Spou~se as Recipient. Annual, se2ni-annual, quarterly~or
monthly payments to Participant ar~/or Participant's spou.se over a term
which does r~t exceed the joint life and last survivor expectancy of the
Participant ar~d Participant's spou~~ in amaunts calculated to liquidate
the Participant's Participation Aooo~uit as of the last payment. In the
event of the death of the Participant ar~d the Participant's spouse before
the end of the selected term,ithe payments will contirYUe to the designated
Beneficiary for a period not exoeedir~g the lesser of (A) the amrnint of
years ren~ainirig under the select,ed term of (B) fifteen (15) years.
(a) Election to Postpone Payout. Upon separation frcnn City
service, any Participant may request that the F~layer withhold the
payment of benefits until no later than sixty (60) days after the close of
the Plan Year in which such Participant reaches Normal Retirement Age.
This election nnast be made, if at all, prior to the earliest distribution
date allcxaable w~der this Pland
~ .
(b) Death of Participant in SeYVice. In the event of death of
the Participant while the Participant is in Service, the ~loyer shall
not ccmm~en,ce payment of benefits wztil ninety (90) days after notification
of the death of the Participant, in ooatq~liarice with State laws governing
the payment of death benefits.
(c) Death of Participant after Separation froQn Servioe and
before start of Distri.bution. As provided by the Oode ar~d subject to
certain exveptions, the es?tire benefit ~must be distributed oaz or before
Deoember 31 of the caler~dar year which contains the fifth anniversaiy of
the Participant's death. , ~
~ .
(d) Continued Irivestment of Particination~ Ac~ount. A
Participant's Aoooa.uit may oontit~oue to be irive.sted until, in the II~layer's
sole judc~nt,.ca~~h is to be withdrawn for payment of benefits.
j
(e) Canmienoement of Benefit Payaut. ~ccept as provided in
~ subsection (b) ar~d (c) of ~this Section, all payments of benefits will
c~m~enoe on the fixst day of the ~ m~nth desicp~ated by ,,the Participant
pursuant to the options descrilied hex~ein. ~
;
~
6.03 Ct~anges in Distr'~xtions. Notwithstan3ing ariy ather provision
of this Plan, th~e II~loyer may at ar?y time char~ge th~e time or methods ~ of
distribution of benefits under the Plan. Zhe ~layer may, at its
disc;i~etion, dischan~e in full its obligations w~der the Plan to any
Participant, or follawiryg the cleath of ~the Participant, to the
Participant's Beneficiaty or Beneficiaries, by distributir~g an amount
equal to the balance of the Participant's Participation A~ooaint.
6.04 Particinant Re-II~layment Prior to Cxamnenoement of
~ Distribution. Arry perriii~g elect,ian of cii.stribution will beoaa~~e void if
the Participant beocanes re-e~loyed with the City, e~acept onoe
distribution has oca~eryoed, it ; is irrevocable.
I
I
' ~ ~
6.05 Withholding of Taxes. ~cept as othexwise allawed by law, ar~d
, notwithstar~ding any other provision in thi.s Plan, u~oiz cti.stribution of
benefits to the Participant, the II~loyer shall cause to be withheld
applicable federal ar~d state ir~a~e taxes ar~d ariy other amaint required bY
law. .
~ 6.06 Satisfaction of Payment. Ariy payment to a Participant or to
such person's legal representative or beneficiary, in ac~ord,ance with the
~ pravisions of the Plan, shall, to the exteixi of such payment only, be in
full satisfaction of all claims hereuncier against the Ac~itinistrator, the
City Manager, ar~d the II~loyer, ariy of whcaa may require such Participant,
lpgal representative or beneficiary as a condition pY~ec,edent to surh
paymexit to execute a reoeipt ar~d release therefor, in such form as shall
be determined by the Achninistrator, the City Manager, or the II~loyer, as
applicable. Zhe ~layer does not guarantee the Plan, the Participants,
forn~er Participants or their Beneficiaries against~loss of or depreciation
in value of ariy right or benefit that ariy of th~a may avqu.ire under the
terms of the Plan. Plaxtl~ier, the IInplayer does nat warrant any tax
benefits of the Plan. ~
~
VII. ~
NON
ASSI(~BILI*i'Y ~
7.01 Non-Assignability.; Benefits provided wxier the Plan may not be
anticipated, assigned (either at law or in equity), alienated or made
subject to attachment, garnishment, levy, executian or other legal or
equitable process, except as provided in this Sectian.
7.02 "Assigrnnent" ar~d "Alienation". For p~urposes of this section,
the terms "assigrm~it" ar~d "alienation" inclwde:
(a) ar~y arrangement ; providir~g for the payment to the F~nplayer of
benefits which wauld otheYwise be due to a Farticipant under the Plan; arid
(b) arry direc~t of irxiirec~t arraryg~xnent (whether revocable or
irrevocable) w3~ereby a party i acquires frce~a a Participant or Beneficiary a
ric~t or interest enforoeaUle against the Plan in, or to, all of ariy part
. of a Plan benefit payment ~which is, or may beocene, payable to the
Participant or BeneficiaYy.
FOY' p0.11~062S Of th1S SEC'~lOll~ the ~~~aSS1C~1'IItl~t$~~ c']I1d n111P.1'Ir3tlOlln
do not include, and Sectio~n 7.04 does not apply to, th~e follawing
arratlge~m~ents:
(1) ariy . arrarige~t~ent for the withholding of federal, state or
local tax on Plan be.nefit payu~ents; .
( 2) ar~y arrange~nent for the reoovery by the Plan of werpaymezzt
of benefits previovsly made to~a Participant;
( 3) arry arrangEment for the direct deposit of ~benefit payments
to an aa~auzt in a bank, savir~gs ar~d loan as.sociation, or aredit union,
. pravided such arrar~gc~nent is not part of an arrangement o~nstituting an ~
assigrnner?t or alienation as ; otheYwise defined in this section ar~d barred
by Section 7.01.
. , - 8 -
i
0 7.03 Assiurunent After ~~Pa~t Oo~m~enoes. Onoe a Participant or
-BeneficiaYy begins reoeiving; be,~zefits under the Plan, th~e Participant or
' Beneficiary may assign or alienate the right to f~ture benefits payments.
7.04 Payment to Zhi~i Party. An arrar~ge7nent whereby a participant or
Beneficiary directs the Plan to pay all, or ariy portion, of a Plan benefit
payn~xit to a third party ( includir~q the participant's e~layex) will ~ not
constitute an "assic~¢nerit or ~ alienation" if :
(a) It is revoc,able at arry time by the P~zrticipant or
Beneficiazy; ar~d
(b) the thini party files a written aclaiawl~nt with the
Ar.~ninistrator which states that the third party has no enforoeable ric~t
in, or to, ariy Plan benefit paymeizts or portion th~ereof (exoept to the
extend of payments actually reoeived pursuant to the teYms of the
arrangement). For pu~poses of this subsectio~n, a blanket written
ac.~mawledc~netlt for all Participants ar~d Beneficiaries who are cavered
undex the arrar~geme-nt with the third party is sufficient. Zhe written
ac)mawledc~~ent imast be filed ~with the Ac~ninistrator not later than ninety
(90) days after the arrar~gement is entered into. .
~ ~ VIII :
F~'L(JYII2~S RE~SPONSIBIL~'~'~5
' 8.01 IrYV~ents.. ~e ~layer shall, but is nat required to, invest
fw~ds arid credit the Participant's a~t with earnings at a rate
reasonable Lu~der all facts ar~d c' . Any acti~ by the II~layer
in irrvestiryg fur~d.s, or appraviryg of arry such irYVes~ient of f~uyds shall not
be considered eithex an ex~dorse~nent or guarantee of arry irrvestment, nor
shall it be carLSide.red to be a test of the financial saurrlness or the
~~;tability of arYy ir?ve~ent for the pu~ of ineeting future
cabligations as pravided in Section 5.06.
8.02 Incleamitv. ~he Eag~layer does nat warratit th~e tax benefit of the
Plan to the ext~r~d permitted by law, the Plan shall irydenmify, hold
harmless and (upon requ~es~) idefex~d City Manager, the Ar~mi.r~istrators, the
~itY ~~Y ~r P~ to whcen ariy fiduciary respoazsibility with
respec~t to the Plan is allocated ar delegated fran and against ariy ar~d all
liabilities, oosts ar~d ~~e~ses incurned by suc~ persons as a result of
any good faith act or ~ioai to act, in oonnecti~ with the performanoe
of such pessan~s duties, resparLSibilities and abligatioa~s utxler the Plan.
IX -
" PZ~1N1Ib-PZAN TRANSFERS
~
9. Ol Zhe City will aooept fur~ds , fro~n other eligible State deferred
Cc~eiLSation Plans established pursu~nt to Section 457 of the Internal
Revenue Code to be transfei~red ar~d ac~ded to the participants aocount
within the Plan prwided that all of the follaair~q oond,itions exist:
~ (a) the ftu~ds so transferred wer~ deferred by th~e Participant
frmn C,c~en~~ation while e~layed by a political subdivisi~?; ar~d
- 9 -
I
-
. ,
. ~
, ' (b) the fw~ds so transferred are frcan a plan that provides that
if the Participant separates frcen seYVioe in order to aooept en~laymeiYt
with another political subdivision, payout will not o~¢n~noe ~on
separation f~cen sexvioe, regardless of any other prwision of the plan,
and amounts previausly deferY~ed will autvmatically be transfexred.
(c) Transfer amounts will be aocepted on behalf of a Participant
only if the former plan pravides assurance that such plan is an eligible
plan.
9.02 Anr~unts deferred by a fornier Participant shall be transferned to
another eligible plan of which the foYmer ParticiparYt has beoo¢ne a
Participant provided that the other plan pravides for the acoeptance of
the am~o~,tnts.
9.03 Rega~rlless of ariy other provision of the Plan, if the
Participant separates fr+can service with the city in order to accept
~ e~loyment with another political subdivision, payaut will not c.cmunence
upon separation frara servioe ar~d amr~unts pre:viously deferred will
autcanatically be transferred.
X
MISC~LLANDOTJS ; • I
t.
10. Ol Status of Participant. Neither the establ~ of the Plan
nor any modification thex~eof, nor the establistmient of any benefits, shall
be oonstrued as giviryg to I ariy Participant or orther person any legal or
equitable ric~t against the F~layer exoept as hereby prwided; and in no
event shall the tern~ of e~layment of arry IItq~loyee or Participant be
modified or in ariy ~ray affec~ted hereby.
10.02 Condition of the Plan. It is a oor~dition of the Plan, arid each
Em~loyee by participatiryg herein expressly aqrees, that he shall look
solely to the gen~ral assets of the e~loyer for payment of arYy benefit to
which he is entitled Lu~der the ~ Plan. .
~ I
10.03 Gvverning I~w. ZYiis Plan shall be oonstxwed, achninisterad ar~d
enfozr~ed aooordirx~ to the Interrsal RevernLe dode and the laws of the State
of California. I
10.04 Desiqnation of Be.neficiaries. Each Participant s1~a11 designate
Beneficiary(ies) to reoeive arYy benefit to which.said Participant may be
entitled in the event of the Participant's death prior to the ocm~letion
of distribution of benefits on the forn~s provided by the Plan
Ac~ni ni s~tpr fQY' tl~dt p~t11YZJC)6E_. A d@Sl~~d BP112.f1Cld~ ~ b@ aIl
identifiable individual. Persons other than individuals~such as estates
or tYVSt, may nat be designated beneficiaries. In abs~r~oe of a
designation by the ParticiparYt, benefits will be paid to the surviving
spouse, if ariy. If the Participant designated a Beneficiary ather than
the current spau~~e, a written waiver of rights i?a~st ~be signed kry the
Participant's spou.se.
10.05 No Right of Future F~nployment. Nothirg in the Plan shall be
construed as oonferrixyg ug~on arYy Participant ar?y ric~t to continue
e~layment with the II~loyer.
~
- 10 -
. .
. ,
. ,
' I
. , r,
. 10.06 Gerider. As used in,this Plan, the masculirie, f~ine or neuter
ger~der ar~d the singular or j plural nwnber shall be deemed to include the ~
other unless the context clearly ir~dicates othexwise.
10.07 Persons Affected k~y Plan. The Plan shall be binding ~on and
shall inure to the benefit of the II~layer, its successor arid assigns, all
Participants and Beneficiaries, and their heirs ar~d authorized
representatives. '
10.08 C~rnm~nications. E,~noept as otherwise expressly pravided, ariy
notioe or other ocammuiication required or pexmitted unde~. th~s Plan shall
be in writing, ar~d if direct.ed to the e~loyer, shall be sent to the City .
Manager at its principal offiqe and, if direct.ed to a Participant or to a
beneficiaYy, shall be sent to such Participarit or Beneficiary at the last
lmawn addre_ss for such Person i it appears in the F.t~layer's recorcis. ~
10.09 Hea ' . Headings u.,~ecl in the plan are insert,ed for.
corrvenieix~e of referenoe on1y. I
10.10 City shall have the right to contract for the achninistration,
aoco~uzting ar~d irivestment sexvioes with regard to operation of the Plan.
CITY OF QJPERTIlJO
i
i
BYr ~
Date: O~ / ~i.~- ~7 ~ '7i
~
ATI'F~T•
;
CZTY CLERK .
A,PPROVED AS 'In . ~
~ ~ ~ ~9.2. ~ ' ,
CITY ATTORNEY
;
~
~