HomeMy WebLinkAboutAgenda Report - May 19, 1982 (54)EMPLOYEES DEFERR- Council was apprised that the City of Lodi first began an
ED COMPENSATION employees' deferred compensation program in July 1977. At
PLAN that time, we contracted with rational Plan Coordinators (NPC)
to administer the Plan. They prepared a Plan which the City
Council then adopted. Since that time, there have been changes
in Federal law and IRS regulations regarding these plans_ in
mid 1981, the City became concerned about the manner in which
NPC was administering the Plan, and in December 1981, gave
notice that the City would not renew its relationship with NPC.
In March 1982, the City signed an Agreement with Home Savings
and Loan Association for administration of the Plan.
One of the things Home Savings has done was to review our Plan
and point out the need to update the Plan so that it wou 2d be
in conformity to Federal lags and regulations.
The persons recommended for appointment to the Advisory
Committee have been .involved with the Plan for some time;
have interviewed potential administrators; and reviewed t -he
material presented to the City to assist in developing a new
Plan. The plan has been reviewed by Home Savings and Loan
Association and has their "stamp of approval".
It j.s important to have a member of the Committee execute
documents, as each participation agreement, change in beneficiary,
change in deferral, etc. must be signed by an agent of the City.
As all of these records flow through the City Manager's office,
it would be most expeditious if Jerry Glenn, as Chairman, or
in his absence, Alice Reimche, sign these documents.
Following discussion, on motion of Councilman. Pinkerton,
Murpi?y second, Council approved the Fmployees' Deferred
Compensation Plan; appointed the following persons to the
Advisory Committee: Jerry Glenn, Chairman, Robert Holm,
Gary Ma:,, Alice Reimche, Glen Robison and E'4ie Temp;- and
authorized .Terry Glenn or Alice Reimche to execute the necessary
documents for the subject Flan.
At the April 21, 1982 regular City Council meeting, Councilman
Randy Snider suggested a possible change in the City Council
Agenda order o: business so that the Consent Calendar night be
heard and considered earlier in the meeting. A draft ordinance
was pre3ented and discussed.
0
May 21, 1982
Mr. Timothy M. Murphy
Vice -President
Home Savings and Loan Assoc.
401 E. Valley Blvd.
Alhambra, CA 91801
Dear Mr. Murphy:
Enclosed herewith please find a copy of the City of Lodi
Employees' Deferred Compensation Plan which was approved by
the Lodi City Council by motion action taken at its regular
meeting of May 19, 1982.
This action also included appointment of the following persons
to the Advisory Comnittee:
Jerry Glenn, Chairman
Robert Holm
Gary Mai
Alice Reimche
Glen Robinson
Elsie Temp
The Lodi -.ity Council also designated Jerry Glenn or Alice
Reimche to execute the necessary documents pertaining to the
approved pj.an .
Very truly yo -ars,
Alice M. Reimche
City Clerk
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Enc.
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C I T Y O F L O D I
EMPLOYEES' DEFERRED COMPENSATION PLAN
SECTION 1.
NAME: The name of this Pian is the City of Lodi Employees
Deferred Compensation Plan thereinafter referred to as the
"Plan").
SECTION 2.
PURPOSE: The purpose of this Plan is to enable Employees of
the City of Lodi, California, to defer portions of their
co.opensation and to provide retirement, disability and death
benefits.
In accordance with Sections 53212 - 53214 of the Government
Code of California, it is intended that the plan constitute an
"eligible State Deferred Compensation Plan" within the meaning
of, and that the Plan satisfy the requirements of Section 457
of the Internal Revenue Code.
SUCTION 3.
DEFINITIONS: For the purpose of this Plan, certain words or
phrases used herein will have the following meanings:
5/19/82
DEFERRED COMPENATION PLAN 10
3.1 "Employer" means the City of Lodi.
3.2 "Employee" means any officer or full time employee
as defined in the personnel ordinances of the
Employer.
3.3 "Participant" means any eligible Employee who
elects, pursuant to the Plan, to defer a portion of
his/her compensation, and who fulfills the
requirements for participation in the Plan.
3.4 "Participation Agreement" shall mean the written
agreement by which an Employee elects to become a
Participant under tha Plan.
3.5 "Beneficiary" may be any person, trust, corporation
or firm, or the estate of the participant, or any
combination of the foregoing designated by a
Participant to receive benefits under the Plan.
Designation shall be by written instrument executed
by the Participant unless otherwise provided.
Beneficiary may be singular or plural, primary or
contingent.
3.6 "Administrator" means the duly authorized party or
parties appointed by the Employer to act as the
Employer's agent in administering the Plan.
DEFERRED COMPE TION PLAN
3.7 "Advisory Committee" shall mean that body
designated to operate and oversee the plan.
3.8 "Compensation" means the full basic salary or wage
which would be paid by the Employer to or for the
benefit of an Employee for actual services for the
period that he is a Participant.
3.9 "Payroll Period" means the work period for which a
pay check is issued.
3.10 "Includible Compensation" means compensation for
services performed for Employer which is currently
includible in gross income.
3.11 "Retirement" means retirement from service with the
Employer which becomes effective on the first day
of they calendar month after Participant meets the
age and service requirements for retirement
(including "early" or "late" retirement) specified
in the applicable retirement policies of the
Employer.
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DEFERRED COMPENOTION PLAN
SECTION 4. PARTICIPATION IN T4E PLAN
4.1 Any Employee may elect to become a Participant in
the Plan by executing and filing a Participation
Agreement with the Administrator. An election to
participate in the Plan shall become effective with
respect to compensation earned by the Participant
during the second full pay period following the
date of the Participant's election. Such election
shall continue thereafter in full force and effect
unless revoked by the Participant.
4.2 Each Participation Agreement shall specify the
amount, by dollar amount or by percentage of gross
compensation, which is to be deferred pursuant to
the Plan and to be withheld out of the compensation
otherwise payable to the Participant for each
Payroll Period. The amount deferred each year may
not exceed the lesser of $7,500 or 33 1/3% of the
Participant's Includible Compensation. Such
deferred amounts shall be reasonably equal
installments totaling not less than Ten Dollars
($10.00) per Payroll Period or 2% of the Employee's
Compensation, whichever is the greater.
The annual minimum may be prorated during the
inception yea:, or during a partial year for a new
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DEFERRED COMPEhtTION PLAN
10
or newly eligible Employee, for full Payroll
Periods remaining in the first calendar year of
participation.
4.3 Notwithstanding the provisions of Section 4.2
herein, during any or all of the last 3 tax years
ending before a Participant's normal retirement age
the maximum amount deferred annually shall be the
lesser of $15,000 or the sum of the maximum amount
which can be deferred pursuant to Section 4.2 plus
the difference between the amount which could have
been deferred in prior years and the amount
actually deferred pursuant to the Plan.
4.4 A Participant may revoke his election to
participate in the Plan, and thereby terminate
further deferral of his Compensation, by executir 1
and filing with the Administrator a notice of
revocation st least thirty (30) days prior to the
effective date of revocation. A former Participant
may not file a new participation agreement until 90
days after the revocation occurred. No amounts
shall be payable to an Employee upon revocation of
his participation in the Plan unless otherwise
provided for in Section 7.
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DEFERRED COMPENOTION PLAN �4%
4.5 A Participant may change the amount of Compensation
to be deferred or preference of investment
objective in a subsequent pay period by executing
and filing notice with the Administrator at least
30 days prior to the beginning of such pay period,
prov.LJed, however, that such change may be made not
more than two times in a ;.7alendar year.
4.6 A Participant may designate in writing a
Beneficiary to receive any benefits which may be
payable under the Plan upon the death of such
participant. Designation of Beneficiary may be
changed by notice in approved form executed and
filed with the Administrator.
SECTION 5. DEFERRAL OF COMPENSATION
5.1 During the period of participation, the Employer
shall not pay the Participant his full
compensation, but shall defer payment of such part
of his Compensat•:on as the Participant has
specified in his Participation Agreement. The
Employer shall establish in its records a separate
fund known as the "Investment Fund". This account
is to provide a convenient method of setting aside
a portion of its assets to meet the Employer's
DEFERRED COMPEXaTION PLAN
obligations to each and all Participants under the
Plan.
5,2 Neither the existence of the Plan nor the
Investment Fund shall be deemed to create a trust,
or Custodial Account for or in behalf or for the
benefit of any participant.
5.3 The employer may allow participants to choose
from among the following investment objectives:
annuities, life insurance, savings account, shares
in mutual funds, or any investments allowed by the
laws of the State of California.
5.4 The employer may invest and reinvest amounts in the
investment fund in any investment authorized by
California Government Code Section 53609 as now in
effect or as the same may be amended or revised
which in the employer's sole judgment will beat
achieve: the employers objectives. The employer
may, but is rot required to, invest in the
invest -rent vehicle provided in Section 5.3.
5.5 Participation Accounts
The Employer shall cauFe to be established for each
Participant a Partic4.pation Account to provide a
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DEFERRED COMPEN40TION PLAN
convenient method of measuring the City's
obligations to the Participant under the Plan. The
City shall cause to have credited to each Account
amounts equal to the Compensaticn deferred by the
Participant !ruder the Plan. The assets of the
Account shall be invested in such investments as
the Plan may allow pursuant to Section 5.3.
Participation Accounts shall at all times remain
part of the general assets of the City and shall
remain available for the payment of City
obligations. Each Participant's Participation
Account shall further be credited with earnings,
gains, or losses applicable to such investments.
Each Participation Account will be valued at least
semi-annually.
5:1 Notwithstanding any other provisions of this Plan,
the Employer may make additional deposits in the
Iavestmert Fund as additional Compensation for
services to be rendered by the Employee provided,
(1) the Employee has elected to have such
additional Compensation deferred, invested, and
distributed pursuant to this Plan, prior to the
Emplc;►ment Period in which the Compensation will be
carried, and (2) that ouch additional deposits shall
not exceed the maximum, deferral permitted in
Sections 4.2 and 4.3.
I=
DEFERRED COMPENMION PLAN
SECTION 6. ADMINISTRATION OF THE PLAN
6.1 Designation of Advisory Board
The Employer shall designate six (6) employees to
serve as an administrative committee to act in the
Employer's behalf. Any such designation may be
subsequently changed by the Employer.
Any action of the Advisory Board shall be deemed
action of the Employer and shall be deemed to be
taken in accordance with the purpose of this Plan.
6.2 Authority
One or more authorized members of the Advisory
Board may execute any document or documents on
behalf of the Employer. The Employer shall accept
and rely exclusively upon any direction or document
executed by such authorized member(s) as
representing action by the Employer until the
Employer revokes such designation.
6.3 Duties
The Advisory Board shall enforce this Plan in
accordance with its terms and shall be charged with
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its general administration. The Advisory Board
shall exerciee all of its discretion in a uniform
manner and shall be responsible to accomplish those
purposes, including but not limited to t, -ie
arthority and responsibility:
a. To determine all questions relating to the
eligibility of Employees to participate:;
b. To compute and certify to the Employer the
amount and kind of benefits payable to Participants
and their Beneficiaries;
c. To maintain all data, records, documents, and
papers pertaining to the administration the Plan;
d. To authorize all disbursements by the Employer
from the Investment Fund;
e. Subject to the limitations set forta in Section
5. 3, to dirr.ct the investments to be made by the
Employer in a manner consistent with the investment
authorized by this Plan;
f. To make such rules for the regulation of the
Plan as are not inconsistent with the terms hereof,
which determination shall be conclusive and binding
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DEFERRED
COMPEAION
PLAN
its general administration. The Advisory Board
shall exerciee all of its discretion in a uniform
manner and shall be responsible to accomplish those
purposes, including but not limited to t, -ie
arthority and responsibility:
a. To determine all questions relating to the
eligibility of Employees to participate:;
b. To compute and certify to the Employer the
amount and kind of benefits payable to Participants
and their Beneficiaries;
c. To maintain all data, records, documents, and
papers pertaining to the administration the Plan;
d. To authorize all disbursements by the Employer
from the Investment Fund;
e. Subject to the limitations set forta in Section
5. 3, to dirr.ct the investments to be made by the
Employer in a manner consistent with the investment
authorized by this Plan;
f. To make such rules for the regulation of the
Plan as are not inconsistent with the terms hereof,
which determination shall be conclusive and binding
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DEFERRED COMPENAtION PLAN
on all Participants, applicants for participation
in the Plan, Beneficiaries and the Administrator;
6.4 The Employer may employ or contract with any one or
more persons or organizations to render
consultation and/or advice and/or to perform
services with regard to responsibilities of the
Advisory Board under the Plan. Said Administrator
shall be selected by the Employer after
consideration of recommendations by the Advisory
Board. The Administrator shall be governed by tope
Advisory Board. Persons or organizations eligible
to act as Administrator may include, without
limitation, actuaries, attorneys, accountants, and
pension, benefits, financial, and administrative
consultants.
a. Administrators Capacity. Any such person so
employed or independently contracted for shall act
in an advisory consulting capacity only and shall
not constitute a fiduciary solely by reason of so
acting; and the employment or contracting of any
such persons shall_ not relieve the Advisory Board
from its responsibility under this Plan.
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DEFERRED COMPENokrION PLAN
b. Allocation of Duties to Administrator.
The Advisory Board may, from time to time, allocate
to the Administrator any of the Board's rights,
powers, duties, and/or responsibilities with
respect to the operation and administration of the
Plan. No such allocation or delegation shall be
deemed to have occurred unless the same be in
writing to the Employer. Any such allocation and
delegation shall be reviewed at least ,annually and
shall be terminable upon such notice to the
Employe, as the Advisory Board de -ms reasonable and
prudent under the circumstances.
6.5 No less frequently than semi-annually, the Employer
and the Participant shall be furnished with written
reports showing the fair market value and/or the
current balance of the amount invested (including
interest and dividends accrued, if any), and
amounts shown in such reports shall be reflected in
each Participant's Participation Account by the
Employer.
6.6 The Employer shall have the sole right to vote any
shares of stock or proxies which it may acquire or
be entitled to by investment of Deferred
Compensation funds.
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DEFERRED COMPEN,*�ION PLAN
rd�
6.7 Prior to the time specified in the Plan for payment
to Participant each Participant shall elect the
time, manner and (if Applicable) the amount of
benefits to be paid to him, or in the event of his
death to his Beneficiary, under the Plan. If no
election is made, payment may be made as a lump sum
distribution.
6.8 In the event that the Employer should purchase an
annuity as a means of investment and distribution
of funds in the Participant's Account, the
Employer shall be the owner of such annuity
contract. The rights to the participant shall be
limited to the right to receive monthly payments
pursuant to such policy.
SECTION 7. BENEFITS
The Employer shall pay to the Participant, or to his
Beneficiary if applicable, the amount in such Participant's
Account as of the month-end following the Participant's
termination, retirement, total disability or death.
Distribution of Benefits under the Plan will be made, or if in
installments shall commence, not later than sixty (60) days
after notice to the Administrator of the occurrence of the
events described in this Section unless otherwise specifically
provided in the Participation Agreement. All distributions
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DEFERRED COMPEN A ION PLAN el
shall be subject to any State or Federal taxes required to be
withheld. Payment shall be made in accordance with the
election made in the Participation Agreement, except in the
event of Hardship described in Section 7.3.
Installment distributions shall be in approximately equal
installments which shall be intended to exhaust the balance
due Participant or Beneficiary at the expiration of the term
over which they will be made. Such installment amounts may be
adjusted from time to time to take into consideration gains or
losses, if any, from funds invested.
Notwithstanding the foregoing if any method elected by the
Participant shall result in installment payments of less than
$25, the Employer shall make payments on an annual basis
aggregating installments otherwise due; or if the balance due
Participant or Beneficiary is less than $1,000, Employer shall
discharge its obligation by a lump sum payment.
7.1 SEPARATION FROM SERVICE. In the event of a
Participant's separation from service, the full
benefits credited to the Participant's Account,
plus or minus investment gains or losses, but less
any Federal or State taxes required to be withheld,
shall be distributed to a Participant in any one or
more of the following ways, so elected by the
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DEFERRED COMPENA4ION PLAN i: -
Participant subject to the employer's discretion
pursuant to Section 6.7.
7.1(a) Lump Sum Payment. The total balance
payable in one cash payment.
7.1(b) Life Annuity. An annuity payable annually,
quarterly or monthly to the Participant
during a period of years measured by the
lifetime of the Participant Ur the
Participant's spouse if so selectedl
however, in no event shall the Employer
distribute to the Participant,
Participant's spouse, and/or Beneficiary(s)
more than the balance in the Participant's
Participation Account. If the Employer
finances this distribution with the
purchase of an annuity, no amounts will be
payable to the Participant, his or her
estate, or any Beneficiary(s) upon the
death of the measuring life.
7.1(c) Joint and Survivor Annuity. An annuity
payable annually, quarterly or monthly to
the Participant and the Participant's
spouse during a period of years measured by
the joint life and last survivor expectancy
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DEFERRED COMPEN ,,' PLAN
of the Participant and Participant's
spouse; however, in no event shall the
Employer distribute to the Participant,
Participant's spouse, and/or Beneficiary(s)
more than the balance in the Participant's
Participation Account. If the Employer
finances this distribution with the
purchase of an annuity, no amounts will be
payable to the estate of Participant or
Participant's spouse, or to any Beneficiary
of Participant or Participant's spouse, at
the death of the survivor of Participant
and Participant's spouse.
7.1(d) Payments for a Specified Period -
Participant as Recipient. Annual,
quarterly or monthly payments to
Participant over a term not to exceed
thirty (30) years, which term does not
exceed the life expectancy of the
Participant, in amounts calculated to
liquidate. the Participant's Particf-.ation
Account as of the last payment. In the
event of the daath of the Participant
before the end of the selected term, the
payments will continue to the named
Beneficiary for a period not exceeding the
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DEFERRED COi1PENN ION PLAN
lesser of (i) the amount of years remaining
under the selected term or (ii) five (5)
;Pears.
7e1(e) Payments for a Specified Period -
Participant and/or Participant's Spouse as
Recipients. Annual, quarterly or monthly
payments to Participant and/or
Participant/s spouse over a 'term not to
exceed thirty (30) years, which term does
not exceed the joint life and last survivor
expectancy of the Participant and
Participant's spouse in amounts calculated
to liquidate the Participant's
Participation Account as of the last
payment. In the event of the death of the
Participant and the Participant's spouse
before the end of the selected term, the
payments will continue to the named
Beneficiary for a period not exceeding the
lesser of (i) the amount of years remaining
under the selected term or (ii) five (5)
years.
7.2 DEATH: In the event of death of any Participant,
either before or after termination of employment,
they: the full benefits credited to his Account
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DEFERRED COMPENATION PLAN
shall be distributed to his Beneficiary in a manner
described in Section 7.1 as pre -elected at time of
enrollment.
7.3 HARDSHIP: In the event of occurrence to the
Participant of an unforeseeable emergency event to
be determined by the Employer in his sole
discretion, the Employer may pay to the Participant
all or any portion of the amount in such
Participant's Account as of the month-end following
the date when such determination is made. As used
herein, emergency event shall mean only a real
emergency which has occurred, which is or was
beyond control of the Participant, and the
occurrence of which has or would cause the
Participant great financial hardship. The amount
that will be paid out shall be limited to the
amount necessary to alleviate that hardship.
Any distribution under this section shall be deemed
a revocation under Section 4.4 and no further
deferral of Compensation will be made unless
Participant subsequently re-elects to participate
as provided .in Section 4.4.
7.4 Election to Postpone: Payout. If a Participant
voluntarily terminates employment, the Participant
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DEFERRED COMPEN&TION PLAN
may request that the Employer wi'.-hhold the payment
of benefits until such Participant reaches an age no
greater than 65. This election must be made,
if at all, prior to the earliest distribution date allowable
under this Plan.
SECTION 8. MISCELLANEOUS
8.1 The contractual obligation of the Empioyer to the
Participant established by the Plan shall not be
assignable in whole or part, voluntarily or by
operation of law, and no right or interest of a
Participant pursuant to the Plan shall be subject
to any obligation or liability of such Participant
or his Beneficiary, except as provided in the next
paragraph hereinbelow.
8.2 No Participant or other person shall have any legal
or equitable right against the Employer except as
provided in the Plan, and in no event shall the
terms of employrient of any Employee or Participant
be modified or in any way affected thereby.
8.3 Each Participant herein expressly agrees for
himself and his Eeneficiary that he shall look
solely to the general assets of the Employer for
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DEFERRED COMPEQTION PLAN
the payment of any such benefit to which he may
become entitled under the Plan, and acknowledges
that all amounts deferred hereunder shall be
available to satisfy the general obligations of the
Employer.
8.4 The Plan has been adopted in the State of
California and shall be construed and governed and
administered in compliance with all applicable
State law.
8.5 Captions used in the Plan are for the purpose of
convenience only, and shall not limit, restrict or
enlarge the provisions of the Plan.
8.6 The Plan shall be binding upon and shall inure to
the benefit of the Employer, its successors and
assigns, all Participants and Beneficiaries, and
their heirs, and legal representative.
8.7 As used in the Plan, the masculine of feminine or
neuter gender, and the singular or plural number
shall each be deemed to include the others unless
the context clearly indicated otherwise.
8.8 Any notice or other communication required or
permitted under the Plan shall be in writing and,
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DEFERRED COMPED TION PLAN
if directed to the Employer, shall be sent to the
Administrator at his principal office; and, if
directed to a Participant or a Beneficiary, shall
be sent to such Participant or Beneficiary at his
last known address as it appears on the Employer's
records. Such notice shall be deemed given when
mailed.
8.9 Deductions for Participant's contributions to
retirement associations shall be made without
reference to amounts deferred pursuant to the Plano
8.10 An approved leave of absence without pay shall be
considered to be a temporary suspension of
participation in the Plan. Participation shall be
automatically reinstated as of the first day of the
next Pay Period subsequent to the termination of
such leave of absence status.
8.1_1 The Employer shall make no loans or advances to the
Participant or Beneficiary based upon Accounts,
described herein, or upon any other obligations
under the Plan.
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DEFERRED COMPEY' TION PLAN
City of Lodi
Employees' Deferred Compensation Plan
Accepted by the Lodi City Council in
motion action taken May 19, 1982
ALICE M. REIMCHE
City Clerk
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COUNCIL COMMUNICAT3
TO rHE CITY COUNCIL DATE NO.
FROM THE CITY MANAGER'S OFFICE
SUBJECT
EMPLOYEES' DEFERRED COMPENSATION PLAN
MAY 17, 1982
RECOMMENDATION: The City Council approve the attached
Employees' Deferred Compensation Plan; appoint the following
persons to the Advisory Committee: Jerry Glenn, Chairman,
Robert Holm, Gary Mai, Alice Reimche, Glen Robison and Elsie
Temp; and authorize Jerry G,_enn or Alice Reimche to.execute
necessary documents.
BACKGROUND: The City of Lodi first began an employees'
deferred compensation program in July 1977. At that time, we
contracted with National Plan Coordinators (NPC) to administer
the Plan. They prepared a Plan which the City Council then
adopted. Since that time, there have been changes in Federal
law and IRS regulations regarding these Plans. In mid 1981,
the City became concerned about the manner in which NPC was
administering the Plan, and in December 1981, gave notice that
the City would not renew its relationship with NPC. In March
1982, the City signed an Agreement with Home Savings and Loan
Association for administration of the Plan.
One of the things Home Savings has done was to review our Plan
and point out the need to update the Plan so that it would be
in conformity to Federal laws and regulations.
The persons recommended for appoint,nent to the Advisory Committee
have been involved with the plan for some time; have interviewed
potential administratcrs; and reviewed the material presented to
the City to assist in developing a new Plan. The plan has been
reviewed by Home Savings and Loan Association and has their
"stamp of approval". A copy of a letter from Home Savings is
attached hereto.
It is important to ..ave a member of the Committee execute docu-
ments,as each participation agreement, change in beneficiary,
change in deferral, etc. must be signed by an agent of the City.
F.s all of these records flow through the City Manager's office,
it would be most expeditious if Jerry Glenn, as Chairman, or in
his absence, Alice Rei,nche, sign these documents.
JLG:vc
attachments
JL'R Y L. GLENN
C1 irman, Deferred Compensation
Committee
HOME SAVINGS AND LOAN ASSOCIATION
i
401 FAST VALLEY HOULFVARD
ALHAMBRA. CALIFORNIA 41801
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TIMOTHY M M11RP11Y
�•►ct rutcltxNt
DIN I( IOR, BUSINISS A►Kl)
StNVk. IS Ik \II011mf NI i
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May 4, 1962
Mr. Jerry Glenn
Personnel Department
City of Lodi 1
221 West Pine Strect `
Lodi, California 95240
Dear Jerry:
S
"lease be advised that we have reviewed the proposed Plan
Document for the City of Lcdi Deferred Compensation Plan
and find no charges/revisions.
Therefore, once the Plan has been approved by the appropri-
ate City personnel we request that you forward a final copy
to us for permanent file.
Should you have any questions or require further clarifica-
tion please do not hesitate to contact me.
Sincerely,
f
I
Timo Murphy .,
Vic resident
TMM:bf
cc: Ed Jaszewski
..Illrt'A�"2�•r ?ma"'"`r-- .��i` w�Y,xwhr�ro�:
C17Y COUNCIL a
JAMES A MCCARTY. Mayor
ROBERT G MURPHY. Mayor Pro Tem
RICHARD L HUGHES
WALTER KATNICH
JAMES W PINKERTON. It
L]
E
CI`T'Y OF LODI
CITY HALT.. 221 WEST PINE STRE F T
POST OFFICE BOX 120
LODI, CALIFORNIA 95241
(209) 134-5634
III NRY A GLAVI S. It
City Atan.rgrr
ALICE M RFNtCHE
C ttv E Err►
RONALD h! STEIN
City Attorney
April 12, 1982 ( '�
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To: All City Employees
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From: Def,.rred Compensation Committee /
Subject: Status of Deferred Compensation Plan
As you know, the City recently charged administrators of
its Deferred Compensation Plan in order to provide more
efficient service and information to its participants on
a regular on-going basis. National Plan Coordinators
(NPC) is no longer the administrator and effective
March 21, 1982, Home Savings and Loan entered into a
contract with the City to provide the administration ser-
vice.
In order to effect a smooth transition, the Committee felt,
it would be to everyone's advantage if changes requested
by current participants in their existing plans were kept
to a minimum. Your cooperation and patience during this
time has been much appreciated.
It is anticipated that changes in the existing plan may
resume during the month of May 1982. During the month of
April, representatives of Home Savings will meet with all
employees to reacquaint you with the Deferred Compensation
Plan of the City of Lodi and will then be available for
individual counseling regarding your individual plan.
If you desire now to either join the Plan or change your
current Plan, please complete the lower portO of this
Memo and return it to the Personnel Office You will be
contacted by a representative of Home Savings who will set
up an appointment i:o meet with you.
JLRRY L. GLENN
Chairman, Deferred Compensation
Committee
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NAME
LAST FIRST MIDDLE INITIAL TODAY'S DATE
ADDRESS
NUMBER STREET CITY STATE - !P
PHONE: NUMBERS-
RESIDENCE
UMBERS
E4 SID NCE BUSINESS EXT.
SOCIAL SECURITY NUMBER DATE OF BIRTH
DAY MONTH YEAR '
EMPLOYE'S NUMBER DEPARTMENT NAME AND LOCATION
i ) I WOULD LICE TO ENROLL IN THE PLAN.
( ) i AM CURRENTLY ENROLLED IN THE PLAN AND WOULD LIKE TO MAKE A CHANGE IN MY DEFERRAL.
( ) INCREASE ( ) DECREASE ( ) SUSPENSION WITHOUT TERMINATION OF EMPLOY-
MENT.
?MMENTS
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mato hose
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Western Annuity Services.. has Available for use by the, University. of
4
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0-d otA hose of insurance companies that offer tax sheltered
axwity products for-non-profit educational institutions.
The data hose it'currently in specification sheet format. ro-rriripoln rt�
bC mode shoacina one-company against another in the Attached ;» ,
example.
A rwmertcol value be assigned to the vgr!ous :controct elements 4
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in order ta: achieve a ronicing other than current- interest credited. i� Y�
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AAs is "normally the case for most compar sons)
Contracts bk further delineafed into cotagories that provide q l et4 y " `
�-� imd+er�tanding of ,their . possible usea.x The categories include .fixr1 1
raccanits with retiremtnt pAyments ;frons vrt insurance
rs + y r> OCCOtsJ. ni.y -. xCash' value compay�i+xe'd
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4, specific items that make it"completely unprofitable tot tpcsta trti l`�"�-n
comloitedto.anything else airoiioble in the span
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Retirement Counsell
- Beginning in: 1982, we have instituted a _ Retirrerrnent' Counseiic�g.
Seminor for individuals who plan to terminate their employment with'
their cU rent employ-Rr.
We assist the employee in evaluating -their assets with refete�e
Chair intifraded plans. The. seminars provide .Chun with Infarmotiors
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7. Employer retirement plan payment.; options available and. the
consix enees of selecting- various actions. `
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3:' Voluntary program payment options arxi:' the .Gonsequehcea di ''�°
selecting from the various options.
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4. Other.;'assets; their, curr mt am future uses. Transfers that
or should b8 mode to avoid loss or to Insure gains. x'
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Income planning for: five year periods.
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6. Heath consideration, and income.
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Tax Sheltered ,Amxiity Workshops
Westin AnrK)ity Services performs -semina Work* for interested
employees. `limiting participat ion` to nomore .than 25 persons _per
sets 01% Is oilows for areoaa�able' in' Wch*W of lnfortndhin and
idem that include but are not timlte'd to' the fotlowingi
°.o what ax sheltered awwiNes Y
i. A generic presentation as r
how,;they Cart be u1ilIZCld� 110W ihey.:Canno a�
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20 t�corne structuring- what the' witt�lwlding `system hove_ it
works, its relationship to .-taxes on April
exemptions play'a port is both.R` -�
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3 How to evaluate' a life,";Z.
inauranse te's.�t3teltl; ` F :.`
annuity progrorr. Whtre the hates°am�enera!ly; 'wiat .
questions to ask and what the dctswers tMpt� _
rm ° % - _ Y'Y*,--•i 1, a;n..t t r to 1ayhy 4,1s1P'�"rv`�'fan,r..sk.
How 3o utilize o ; tax sheltered
arxWity+ progrd�n` , z {3. L"rJ sy
ti.. t tv; F k iis t`�r � `x�,.,�'*•4;,:id'C•�$ '��'."'i t
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;;, w+�n�, ? wjjyy,. ,lf 5. MOw cx�d when to transfer m9nies tetwee� ea4np�>~ie�y, 14=1��.�� ,
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of personas nature to be asked and more "spiatific overs
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Wsstern Anirwity Se�vio►�s provides sales 'md service OSSi3 74 fir:
irx:toxle butootimitedto,e following,
e it al t ~t_,to i en oll .�t _ i y ;5k
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Provide .arXl schedule annafternen! r.tatcribls to•be distributed
by the employer for initial intorrndtionsl�geri�irkars
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sem' �tx .
Conduct: q sufficient nuryber. of seminors to co�rtirrKn►ica W, � c .
ire#orrhirl to all interested 66V10yees $ �- r '4' j �, ; �� � �,ti •
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ProvtdQ .prolwsols Zb all responding ertloye�s, sioMrSh Sher �� rNrt.
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y�. F tp rati�errt,_t2�e case vo>',,e and onticipaedt�tr iitt1 Y
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Interested
s' -i •� .rte psi• ¢�-x„ Il A7M �'E44'f+'C�'-c:.: b L < -c �.
Provide 4 technical) co tent sales s:at� �tro rr�ee���tes�c� ,��,w� � ''��
n -7. % tri _" - ..' S a �" ..• h- -S Sy ..?its. lG� � �y,�}l �i.� r i'i •c.`
interested employee and Illustrate the :fircta y►fipc�Cy�-�
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'y':�bh )t Y } vriihhoiding�taxes stili the;'tQxeS.:- w
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without'ir�cu�ring a tcx Ibability i -, ;; T� � ,+p�S�Vq}+� V,�
Maintain contact In ordsr to previdi Infarrr to
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eri�p�s,ee/client at least'tttre� tiK per year �>2
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Conduct a review of each employ4601"'M an
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Rernain avail i� to ttka errploytrlo nployee `at a0 tlrtt�e
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answer, any ' Que'stions ncerni.N. Pr o��n p+bfOtiOrty '
_.\..:ski i.:i+.:. 1 1 •1.w: r withrlra sis. deposits, chances in berir¢fici ary, rmd a�
` payment Cep) sons awol loNe.
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WESTERN ANNUITY SERVKM
605 Market Street, Suite 1001'
Scan Francisco, CA 94105
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Tax Sheltered Annuities;ft
neferned Coransotion f'rugrams
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IRAs - Group and Indivlduoi
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SERVICES IgOVIDED
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WESTERN ANNUITY SERVICES, INC.
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WESTERN AWATY $ERVICES, M.
GENERAL BACKGROtM i
WESTERN WAJITY SERVICES,. INC., was established in 1972 to
serve the dowing need for tax relief ._on individual Ond 'corporate : � x
savings programs geared towards retirement.
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Since 1972, Western Annuity has established retirement -pp'
over 70000. individuals, whose combined deposits now exceed
million dollars.' *
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Over the: years," Western Annuity has beeanne � tax s�►cttere:d oc�r%�#y
specialist for -SOI (ex3) non -prof, t corporations.
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Western Annuity . offers its services: from three locations
administrative and sales office in Son Francisco, and: MV -offer In
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.LosAerates and Portland, Oregon.
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WESTERN ANNUITY SERVIiCE% INC.
Son Francisco, Portland arid Los Angeles
605 Market Street,Suite 1001
Son Francisco, CA 94105 4-
(415)989-8787 UR } ys
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o Tax Sheltered Annuity Programs
o Deferred Compensation Programs �� r
0 IRA - Group and Individual Accounts
o income struc4uring rnonthiy and for aprii i Sth ' 4
We currently monitor. 130 different life insurance
products in our data base: We tronstate.;insuraice carriy ft� .sAl
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-
jargon into -English so fha# 'can be recd and understood.
We provide written, signed: corr> arMons` tha# show j►o.fu wha! �.i ``
you have wlwt each insurance co hos :in mind .for. ,
y : ��Y Y�r w r�
and what your:oiterrrotiv-es are.. fri, p
We can shoal you how, to establish your perscmal prograim, fors A";2
the •...ores# cos i' t
Jh ghes benefit without incurring a t((����` ; x.
liability,.' wallow you .;to elect from o wide vane yof� �
.;�.;.
rnpa i order to:attain your finonciat gaol:
insurance co yes in ,
Come visit us at Booth 1Vo. 342 in the Moscone Convention � k _
Center.
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