HomeMy WebLinkAboutAgenda Report - March 8, 1988RECONSIDERATION
OF APPROVAL OF
AFHA". WIT:i
GREAT WESTERN
SAVINGS AMD
LOAN ASSOCIATION
DEFERRED COMP-
ENSATION PROGRAM
cc -5
CITY COUNCIL MEETING
MARCH 8, 1988
Due to certain time constraints regarding the proposed
agreement with Great Western Savings and Loan Association,
to serve as the City's Administrator for the City of todi
Deferred Compensation Proc ram, Staff requested that Council
reconsider the matter suggesting that the Agreement be
approved with the condition that the following wording be
deleted from Secticn 2 entitled 'g1PJvII4ATUN' --- "other
than for cause as defined above".
On motion of Mayor Pro Tempore Snider, Reid second, Council
agreed to reconsider the subject matter.
....Following discussion with questions being directed to
Staff, Council, on motion of Mayor Pro Tempore-.'.`. Snider,
Hinchman second, approved the agreement with Great Western
Savings and Loan Association to serve as the City's
administrator for the City of todi Deferred Compensation
P A; +; d th d 1 t' f th d' It +1,
con i lone
upon a
e e ion o e wor mg o %,
than for cause as
defined above" from Section `'2.entitled.
"1FRM11*4ATION' and
authorized
the Mayor ' and City;: Cl erlc . to
execute the subject
agreement
on behalf ,of. the City.
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CITY 00UUCIL MEETING
MARCH 8, 1988
AGREEMENT WITH
GREAT WESTERN
SAVINGS AND LOAN
ASSOCIATION TO
SERVE AS THE CITY'S
ADMINISTRATOR FOR
T; E CITY'S DEFERRED
COMPENSATION An agreement with Great Western Savings and Loan
Association, whereby i t would serve as the City's
CC -5 Administrator for the City of Lodi Deferred Compensation
Program, was presented for Council approval.
Discussion fol 1 owed with concern being expressed regarding
certain language contained within the proposed agreement.
P motion made by Council Member Pinkerton, Hinchman seccnd,
to approve the agreement, failed to pass by the following
vote:
Ayes : Council Members - Pinkerton
Noes : Council Members - Hinchman, Reid, Snider
and Olson (Mayor)
The City Manager was directed to place this matter on the
Agenda for the regular City Council meeting of March 16,
1988.
SEN' FY:GW FINANCIAL SECURITY : 3- 4-88 : 1:29PM GREAT WESTERN- 9-1-203-333-6795;V 2
VERED MMPOZATION PIAN AMMENr
This Ajyrepirent is effective this 31st day of March, 1988 by and between
GRF.A7.-L WFSljF..RH MNK, a Federal Savings Blr&*, hereinafter referrer to as
c -MEAT wF_qT.FM.7, and cm of LoDI, here.LrutfLer referrLxl to as AGFVCY-
AGENcy, pursuant to and in oawV1itbnA;e with Internal Revenut- Code
Sect -Jai 457, has established a rieferred Corpensation Plan, hereinafter
b. If applicable, mutual fund shares shall be disbursed as
mutually agreed in writing by AGENCY and GREAT WESTERN.
c. if applicable, annuity products shall be disbursed according
to the terms oJF the applicable annuity contract, as mutually
agreed in writing bye and annalty provider.
This section shall not serve to affect normal distributions to
participants pursuant to the PIM.
74�
referred to as PLAN; and
ize GREAT Mel ii -i the performance of
ME. - -y desires to .ttilW-r-
Rr
As, AjRNL
certain services in connection with the administration of the -LAN; and
wHmEA_% GREAT WE desires to provide such services sUblaCt- to the
terms and conditions set forth herein;
th ree 'S
leref ore, AGENCY and GREAT WT9rEPV ag as follow
1. mw: abis Agreement shall, remin in effect for a period of Uave (3':
years from the effective date hereof, and shall not be terminated prior
to that tine except for "Cause" as that term is hereinafter defined.
Thereafter, this Agreement --vall continue in effect for sucresive t:hrc-�!
p) year periods unless either party gives written notice to the other,
:,t less than ninety (go) days prior to the end of any, term, of its
.1tention to renew the Ag -moment. For purposes of this Agreement, the
•
term "cause" shall mean the failure of either party to perform any or all
of its obligations as defined herein. The no: -defaulting Party shall
the defaulting party written notice Much shall specify the partirmlars f
the default. If such default is not cured within sixty (60) days fra the
end of the month in which notice of default is given, the -non-cLefaulting
party may terminate the Agreement effective thirty (30) days after the end
of the sixty (60) day period.
2 TERMINkTION: Upon the effectiveda'.P- aftermination of this
-.Agreement,. otaper than„std. for. cause as def ined above, the following shall
Occur.
a. No new account will be established under this Agreer4ent.
b. If applicable, mutual fund shares shall be disbursed as
mutually agreed in writing by AGENCY and GREAT WESTERN.
c. if applicable, annuity products shall be disbursed according
to the terms oJF the applicable annuity contract, as mutually
agreed in writing bye and annalty provider.
This section shall not serve to affect normal distributions to
participants pursuant to the PIM.
74�
MS
SENT SY:GN FINANCIAL SECURITY 3- 4-33 : 1:30RM GREAT WESTERN-- 5-1-203-333-6795:tt 3
3. DEFERRALS: The minimum participant deferral per pay period shall be
not less than $10.00.
ICY agrees to:
a. Cause appropriate daiuctions to be made foam such laymll (s) as
may be applicable.
b. Send by check or wire transfer the amount of the total
deductiom to :
Great Western Bank
Deferred motion Department
P.O. Box 6350
Northridge, E-allifornia 91328
or to such other facility or in such other manner as may be
mutually agreed upon between GREAT WERIERN and
c. Provide, in such form as agreed upon by AGUICY and GREAT
WE -2-: ERN, a deferral listing with respect to participant
sub-ao=mts to include not less than the. following:
1. Name of Participant
2_ Social Security mer of participant
3. Amount to be credited to participant's
GREAT WESTERN agrees to:
d. Establish a sub -account for each participant.
SENT 3Y=3W FINANCIAL SECURITY ; 3- 4-83 ; 1:31FM GREAT WESTERN 9-1-205-333-6795:4 4
d. Deposit edited to each sUb-a000Int during the period.
e. Withdrawals frcm each sub -aunt during the period.
Intezes,/Ea=.ir,gs credited tri eaa'z sub-aroount duringthe period.
:g. Sunmery totals of the PI.M.
TJCQ-EE = r'1rmu- .ty trarlsactims will not appear on t2he monthly,/q iarterly
reports ar-d quarterly statex-jents issued by Great Western. The
Agency and participants will receive quarterly reports and
statenents frcan the insurance c c -c any.
GMYjr WE91-ON agrees to provide quarterly statements to participants in
the PIAN, no later than twenty (20) days following the end of each
calendar quarter. Each staterent shall identify the 'transactions which
have oo erred in the participant's s:;b—account at the begirTa g and the
end of the preceding quarter.
SENT BY:GW FINANCIAL SECURITY \ 4-88 : I:S2FbM GREAT WESTERN 9-1-209-333-6795:# 5
to perform required monthly, quarterly and annual reporting of
wit ioldings to appropriate taxing authorities. QmM WmnI agrees to
issue appropriate amual wage and tax stateme;Zts to those participants and
beneficiaries who received d_istxiWLion (s) during the precx di. year and
to retain a copy of such information on file for the period required by
law. cam' WMSTERN agrees to provide AGM -Y a monthly report of all
aisbursem :nits made during the previous month.
6. INTES' MMr vEHIciES: SAT %TgrE 2N agrees to provide 'rhe herem
descr'ibe`z services for FAY with ;he following hwestmmemt vehicles.
(2) 7he rate . of interest for all funds.. for Om tract Years
SENT BY:GW FINANCIAL SECURITY ;,,2,7 c -aa : 1:33PM GREAT WESTERN- 9-1-209-333-6795:4 5
For purposes of tl,.is Agreement, "Contract Year" shall man the period of
time between the effective date of the Contract, and the same day of the
month ir. each suviceeding year; the first Contract Year, however, shall be
exte xled, if rx ` ` Y in o)aler to ensure that every Contrract Year will
end on the last day of a calendar Rath.
(3) Interest will accrue daily, using the 365/360 day method,
will be kited monthly, on the last day of the month, and
will be automatically reinvested to allow for monthly
cmpounding-
GREAT WESTERN agrees to collateralize any amount of PIAN funds invested in
GWSIA in excess of Federal Savings and Loan Insurance Corporation
irL—. zrance a limits per participant, with first deeds of tnist on cc=ial,
industrial or residential property. The unpaid outstanding principal
balance of the collateral shall be adjusted monthly, and sba l in the
aggregate, at all times equal or exceed 150 percent of the amount of s ich
funds in excess of FSLIC insurance limi.t..s.
B. Other investment vehicles which will be provided to the PLAN are
described on the attached Schedule I.
(1) If applicable, PLM funds unrested in mutual fund
options will utilize Great Wastern Financial Securities
Corporation, a wholly MTsed : kibsidiary of Great western
Financial corporation, as the Broker/Dealer for such
transactions.
(2) If applicable, Single Premium Ilt>mediate Annuities and ,other
annuity products puzrliased by AGENCY pursuant to PIAN will
be ?ss� and guaranteed`by Al Life Insurance
Ccopany, a wholly owned subsidiary of Great Western
Financial Corporation, or.such other life insurance ompany
selected by Great Western.
(3) Certain investr. -It vehicles may impose sales charges. These
sales dum-ges will be disclosed in the prospectus or
Y..�' ry..,,,t., � ,.�. , .: sa:'riYrxra l `_'nriA- .: �Fn t;�in t mrnacnnat�l v' rri i�]i1�►Fel t3 _ ., i : AC:QICY. a(7reE�S 't1� all[�w aY1d : ... ,.
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SEN- 3Y:Gw =� NCIA!
NA SEC !Ri'Y 3- GREAT WESTERN- 9-1-209-333-0795:« 7
(PEAT W STERN agrees to conduct, or arrange to have conducted, groi;p
presentations periodically for evpl.oyees of A= -,"Y, to explain the KAN.
AGENCY agrees to facilitate the scheu'ulixg of such presentations and to
provide facilities at which satisfactory attemance can be expected. =;E T
kTEST,12N agrees that gvalified personnel will be made available
periodically to discuss the PIAN with individual erployees of AGENCY.
8. 'I°I'IZE AND CMU16=: AGENCY --hall at all tirxs be the unr_�tricted
owner of ail PIAN assets, in accordance with IRC 457 previsio:Is.
9. PRIVITY OF tXORMACE: GREAT W'r'=i''EFil shall have no privity of contract
with PIAN participants. GREAT WE=r-R1 aces not to accept or honor
instructions which may be suhmitted by participants without wzitte.:
authorization from AGENCY.
10. FES AND DaMNS'ES: GREAT Wim— 1*f, in consideration of its services
under the Plan, shall receive an annual adninistratior. fee of twelve
dollars ($12.00) per participant in the Plan. GREAT WFSTIItN will decduct
the administration fee frcm each Participant sub-acocunt in four equal
installments of three dollars ($3.00) at the end of each calendar
quarter. GREAT WEAN requires each Participant to maintain a cash
balance in the GWSIA sufficient to cover adninistration fees.
Other than at the termination. of the Agreement, if a Participant transfers
their accoLmt, or ary portion thereof, from GREAT W-7S=N to another
provider, other than MEAT WMTM: N or a subsidiary of Great western
Financial Corporation, a transfer fee in the amount of twenty-five dollars
3
($25.00) will be assessed. Such fee to be deducted frM the Participant's
account prior to transfer of funds.
Should a participant invest in a "no-load" mutual fund, a fee of one
dollar ($1.00) per transaction will be assessed.
11. TRANSFERS:
A. Ekon the GWSIA To Other Great Western IrFvestm nt QP sans
G17FM WEM;R N will allow the transfer of funds in participant
sub -accounts from the GWSIA to other investTent options p.*-wided
in the plan Agreement.j.
Such transfer will be allowed only upon express written agreanent
between AGENCY, GMAT WEMERN and the applicable investment
optimaanddwill be allaaod throughout the term of this
Age. blu-ids will be transferred from the GWSIA to the other
bWestment option, within three (3) business days of receipt of
written authorization from the AGCY by GREAT WESTERN at its
office in Northridge, California.
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6
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SENT 3Y:GW FINANCIAL. SECURITY �- 4-88 : 1:34PM GREAT ;WESTERN 9-1-209-333-5795:it 8
b. Frm Other Great Western Investment Options to GWSIA
MEAT WE=P-r N. will allow the transfer of finds in participant
sub -accounts frau other GREAT TVIESTEPN investment cptions provided
in the plati Agieem-�zit, (i.e. mutual funds and zum-►uities) to the
GWSIA. Such transfers will be allcx:ed only .4)on express written
agreement between AGENCi, GREAT WESTESN and the applicable
investment option and will be allowed tout the tatm of this
Agreer,ent. lie transfer will be initiated wit1dn two (2)
business days of receipt of written authorization from the AGENCY
by GREAT i+MrERN at its office in 13or`+hridge, California. If a
transfer involves the liquidation of miutual fund shares, the
proceeds frcm the sale of said mutual fund shares, will be
credited to the GWSIA upon receipt of the funds by GREAT WEST --KN
from the investment c)any.
C. Frm Great Western to other Imrestmpant Prgridexs
GREAT WEMTV will allow the transfer of funds in participant
subraccaxnts to other investr.ent providers. Such transfers will
be allowed only tin exp rei s written agent between AGmcY and
GREAT WFSZER14 and will be allowed thxxxxjhout the term of this
Transfers will be processed in accordance with the provisions of
number 10. (Fees and Expenses) and ll.a. and or b.
12. C1RMV ANCx i EXCUSIM MANCE: The perfor "-ce by the parties to
this Agreement is ssbj ect to force maj eure and is excused by fires, powner
failures, strikes, ams of God, restrictions iWosed by government, or
delays beyond the delayed party's control. Failures of or defaults by
investment vehicles other than MEAT WFSTMN shall excuse performance by
GREAT WEMT04 thereby prevented.
SENT HY:GiN ?NANCIAL SECURITY 3- 4-8E ; 1:35PM GREAT WESTERN- 9-1-209-333-6795;4 9
16. APPIMAKE LAW: This Agreement shall be construed in accordance with
the 'Laws operating within the State of California.
17. UNMAN - L P.ROMIUZ: In the event any provisions of this Agmen:t
shall be held illegal or i valid for any reasDn, said .illegality ar
irrralidity shall not affect the remaining parts of the Agreement, but the
same shall be construed and enforced as if said illegal or invalid
provision had neves' been inserted herein.. Notwithstanding anything
contained herein to the Contrary, no party to this Agreement will be
requires to perform or render any services hereimider, the per-.4fo .-ace or
rendition of which would be in violation of any laws relating thereto.
18. MDIFIc.ATION: This writing is intended both as the final expression of
the Agreement between the parties hereto with respect to the included
terms and as a Clete and exclusive statement of the terms of the
Agreement, perm; nt to California Code of Civil Procedures Section 1856 or
its successor(s). No modification of this Agreement shall be effective
uruess and until such modification is evidenced by a writing signed by
both parties.
19. NOTICES: All notices and demand to be given under this Agreement by
one party to another shall be given by certified or United States rail,
addressed to the party to be notified or upon when a depend is being made,
at the respective addresses set forth in this Agreement or such other
place as either party ray, from time to time, designate in writing to the
other patty. Notice snail be deed to be effective on the day the notice
is received by GREAT WESIERN or the Agency.
SENT BY:G'A' FINANCIAL SECURITY 3- 4-88 : 1:36PM GREAT WESTERN-. 9 -i -209-333-6795:#!O
SCHEOLME 1
Pa-suant to Section 6 of this Agremnent, other, investr-..nt vehicles
available under this Agreement are as follows:
American Fund
Bond Evmd of A-rerica
Inv sent Cmpay of America
th ti nd of America
Fidelitv Rj—)ds