HomeMy WebLinkAboutAgenda Report - May 5, 1993 (52)4 4
CITY OF LODI
COUNCIL COMMUNICATION
� a
AGENDA TITLE:
Consideration of Additional Deferred Compensation Provider
MEETING DATE: May 5, 1993
PREPARED BY: Assistant City Manager
RECOMMENDED ACTION:
That the City Council authorise the City Manager to
execute a contract with ICMA Retirement Corporation
as a co -administrator with Great Western Bank of the
City of Lodi's Deferred Compensation Plan.
BACKGROUND: The Deferred Compensation Committee has heard from a
number of employees, some dissatisfaction with the
interest rates being offered by Great Western Bank
and, to a lesser degree, some lack of clarity in the
quarterly statements. The latter is a minor irritant, but is ongoing. Great
Western is reluctant to guarantee participants anything over a 30 -day Treasury
Sill rate and requires "rolling" money over periodically.
They do offer FDIC insurance on accounts which to some employees is of
paramount concern.
ICMA offers a full range of investment options which includes some investments
with a higher return.
The Deferred Compensation Committee does feel that it would be beneficial to
the participating employees to have the option of more than one Plan. The
Committee feels that option should be ICMA Retirement Corporation.
Deferred Compensation is the only business ICMA Retirement Corporation is
involved in and is not a subsidiary or adjunct of a banking or insurance
operation. Many cities throughout the State use ICMA and the reports we have
received from them are highly satisfactory.
FUNDING: As with Great western Bank, there is no cost to the City. The direct
cost of administering the program is borne by the participants.
Respectfully submitted,
11: ! v
Je?ry iJ Glenn
Assistant City Ma.naver
APPROVED:
JGDEFCMP.2/TXTA.01V
C►ty Manager
RESOLUTION NO. 93-56
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING A CONTRACT WITH INTERNATIONAL CITY MANAGER'S ASSOCIATION
(ICMA) RETIREMENT CORPORATION AS A CO-ADMINISTRATO" WITH
GREAT WESTERN BANK OF THE CITY OF LODI'S DEFERRED COMPENSATION PLAN
BE IT RESOLVED, that the Lodi City Council does hereby approve
and authorize the City Manager to execute a contract with ICMA
Retirement 'Corporation as a co -administrator with Great Western Bank of
the City of Lodi's Deferred Compensation Plan, a copy of which Plan and
contract is on file in the office of the City Clerk.
Dated: May 5, 1993
I hereby certify that Resolution No. 93-56 was passed and adopted
by the Lodi City Council in a regular meeting held May 5, 1993 by the
following vote:
Ayes: Council Members -
Noes: Council Members -
Absent: Council Members -
Jennifer M. Perrin
City Clerk
93-56
RES9356/TXTA.01V
ICMA
RETIREMENT
CORPORATION
ADMINISTRATIVE SERVICES AGREEMENT
Type: 457
Account Number: 3862
Plan # 3862
ADMINISTRATIVE SERVICES AGREEMENT
ICMA
RETIREMENT
CORPORATION
This Agreement, made as of the day of
199 , (herein referred to as the inception Date"), between The International City
Management Association Retirement Corporation ("RC"), a nonprofit corporation
organized and existing under the laws of the State of Delaware; and the City of Lodi
("Employer") a City organized and existing under the laws of the State of California
with an office at 221 West Pine Street, Lodi, California 95241.
Recitals
Employer acts as a public plan sponsor for a retirement pian ("Plan") with
responsibility to obtain investment alternatives and services for employees
participating in that Plan;
The ICMA Retirement Trust (the "Trust") is a common law trust governed
by an elected Board of Trustees for the commingled investment of retirement funds
held by state and local governmental units for their employees;
RC acts as investment adviser to the Trust; RC has designed, and the
Trust offers, a series of separate funds (the "Funds") for the investment of plan assets
as referenced in the Trust's principal disclosure document, "Making Sound Investment
Decisions: A Retirement Investment Guide." The Funds are available only to public
employers and only through the Trust and RC.
In addition to serving as investment adviser to the Trust, RC provides a
complete offering of services to public employers for the operation of employee
retirement plans including, but not limited to, communications concerning investment
alternatives, account maintenance, account record-keeping, investment and tax
reporting, form processing, benefit disbursement and asset management.
-2-
Agreements
1. Appointment of RC
ICMA
P,dn # 3862 RKTIRF.MENT
CORPORATION
Employer hereby designates RC as Administrator of the Plan to perform
all non -discretionary functions necessary for the administration of the Plan with
respect to assets in the Plan deposited with the Trust. The functions to be performed
by RC include:
(a) allocation in accordance with participant direction of individual
accounts to investment Funds offered by the Trust;
(b) maintenance of individual accounts for participants reflecting
amounts deferred, income, gain, or toss credited, and amounts disbursed as benefits;
(c) provision of periodic reports to the Employer and participants of the
status of Plan investments and individual accounts;
(d) communication to participants of information regarding their rights
and elections under the Plan; and
(e) disbursement of benefits as agent for the Employer in accordance
with terms of the Plan.
2. Adoption of Trust
Employer has adopted the Declaration of Trust of the ICMA Retirement
Trust and agrees to the commingled investment of assets of the Plan within the Trust.
Employer agrees that operation of the Plan and investment, management and
disbursement of amounts deposited in the Trust shall be subject to the Declaration of
Trust, as it may be amended from time to time and shall also be subject to terms and
conditions set forth in disclosure documents (such as the Retirement Investment
Guide or Employer Bulletins) as those terms and conditions may be adjusted from time
to time. It is understood that the term "Employer Trust" as it is used in the
Declaration of Trust shall mean this Administrative Services Agreement.
3. Employer Dutv to Furnish Information
Employer agrees to furnish to RC on a timely basis such information as
is necessary for RC to carry out its responsibilities as Administrator of the Plan,
including information needed to allocate individual participant accounts to Funds in the
Trust, and information as to the employment status of participants, and participant
ages. addresses and other identifying information (including tax identification
numbers). RC shall be entitled to rely upon the accuracy of any information that is
-3-
1CM %
Plan # 3862 RETIREMENT
CORPORATION
furnished to it by a responsible official of the Employer or any information relating to
an individual participant or beneficiary that is furnished by such participant or
beneficiary, and RC shall not be responsible for any error arising from its reliance on
such information. if within ninety (90) days after the mailing of any report, statement
or accounting to the Employer or a participant, the Employer or participant has not
notified RC in writing of any error or objection, such report. statement, or accounting
shall be deemed to have been accepted by the Employer and the participants.
4. Certain Reoreserttons. Warranties. and Covenants
RC represents and warrants to Employer that:
(a) RC is a non-profit corporation with full power and authority to enter
into this Agreement and to perform its obligations under this Agreement. The ability
of RC to serve as investment adviser to the Trust is dependent upon the continued
willingness of the Trust for RC to serve in that capacity.
(b) RC is an investment adviser registered as such with the Securities
and Exchange Commission under the Investment Advisers Act of 1940, as amended.
ICMA-RC Services, Inc. (a wholly owned subsidiary of RC) is registered as a broker-
dealer with the Securities and Exchange Commission (SEC) and is a member in good
standing of the National Association of Securities Dealers, Inc.
RC covenants with employer that:
(c) RC shall maintain and administer the Plan in compliance with
the requirements for eligible deferred compensation plans under Section 457 of the
Internal Revenue Code; provided, however, RC shall not be responsible for the eligible
status of the Plan in the event that the Employer directs RC to administer the Plan or
disburse assets in a manner inconsistent with the requirements of Section 457 or
otherwise causes the Plan not to be carried out in accordance with its terms;
provided, further,that if the plan document used by the Employer contains terms that
differ from the terms of RC's standardized plan document, RC shall not be responsible
for the eligible status of the Plan to the extent affected by the differing terms in the
Employer's plan document.
Employer represents and warrants to RC that:
(d) Employer is organized in the form and manner recited in the opening
paragraph of this Agreement with full power and authority to enter into and perform
its obligations under this Agreement and to act for the Plan and participants in the
manner contemplated in this Agreement. Execution, delivery, and performance of this
Agreement will not conflict with any law, rule, regulation or contract by which the
Employer is bound or to which it is a pa. ty.
4
r
Ic mA
Platt Ar 3862 RETIRENIENT
CORPORATION
5. Participation in Certain Proceedings
The Employer hereby authorizes RC to act as agent, to appear on its
behalf, and to join the Employer as a necessary party in all legal proceedings involving
the garnishment of benefits or the transfer of benefits pursuant to the divorce or
separation of participants in the Employer Plan. The Employer consents to the
disbursement by RC of benefits that have been garnished or transferred to a former
spouse, spouse or child pursuant to a domestic relations order.
6. Compensation and Payment
(a) Plan Administration Fee. The amount to be paid for plan
administration services under this Agreement shall be 0.9% per annum of the amount
of Plan assets invested in the Trust. Such fee shall be computed and paid monthly
on plan assets in the Trust at the end of each month.
(b) Account Maintenance Fee. There shall be an annual account
maintenance fee of S0.00. The account maintenance fee is payable in full on January
1 of each year on each account in existence on that date. For accounts established
after January 1, the fee is payable on the first day of the calendar quarter following
establishment and is prorated by reference to the number of calendar quarters
remaining on the day of payment.
(c) Compensation for Advisory Services to the Trust. Employer
acknowledges that in addition to amounts payable under this Agreement, RC receives
fees from the Trust for investment advisory services furnished to the Trust.
(d) Payment Procedures. All payments to RC pursuant to this Section
6 shall be paid out of the Plan Assets held by the Trust and shall be paid by the Trust.
The amount of Plan Assets held in the Trust shall be adjusted by the Trust as required
to reflect such payments.
7. Custody.
Employer understands that amounts invested in the Trust are to be
remitted directly to the Trust in accordance with instructions provided to Employer by
RC and are not to be remitted to RC. In the event that any check or wire transfer is
incorrectly labelled or transferred to RC, RC is authorized, acting on behalf of the
transferor, to transfer such check or wire transfer to the Trust.
8. Resoonsibilitv
RC shall not be responsible for any acts or omissions of any person other
than RC in connection with the administration or operation of the Plan.
-5-
1
Plan # 3862
9. Term
ICttA
RETIREMENT
CORPORATION
This Agreement may be terminated without penalty by either party on
sixty days advance notice in writing to the other.
10. Amendments and Adiustments
(a) This Agreement may not be amended except by written instrument
signed by the parties.
(b) The parties agree that compensation for services under this
Agreement and administrative and operational arrangements may be adjusted as
follows:
RC may propose an adjustment by written notice to the Employer given
at least 60 days before the effective date of the adjustment and the notice may
appear in disclosure documents such as Employer Bulletins and the Retirement
Investment Guide. Such adjustment shall become effective unless, within the 60 day
period before the effective date the Employer notifies RC in writing that it does not
accept such adjustment. in which event RC shall be under no obligation to provide
services under this Agreement.
(c) No failure to exercise and no delay in exercising any right, remedy,
power or privilege hereunder shall operate as a waiver of such right, remedy, power
or privilege.
11. Notices
All notices required to be delivered under this Agreement shall be
delivered personally or by registered or certified mail, postage prepaid, return receipt
requested, to (i) RC at 777 North Capitol Street, N.E., Suite 600, Washington, D.C.
20002-4240; (ii) Employer at the office set forth in the first paragraph hereof, or to
any other address designated by the party to receive the same by written notice
similarly given.
12. Comolete Agreement
This Agreement shall constitute the sole agreement between RC and
Employer relating to the object of this Agreement and correctly sets forth the
complete rights, duties and obligations of each party to the other as of its date. Any
prior agreements, promises, negotiations or representations, verbal or otherwise. not
expressly set forth in this Agreement are of no force and effect.
- 6 -
ICJMA
PIaii # 3862 RETIREMENT
CORPORATION
13. Qovernino Law
This agreement shall be governed by and construed in accordance with
the laws of the State of California applicable to contracts made in that jurisdiction
without reference to its conflicts of laws provisions.
In Witness Whereof, the parties hereto have executed this Agreement as
of the Inception Date first above written.
CITY OF LODI
by:
Signature/Date
Name and Title (Please Print)
INTERNATIONAL CITY MANAGEMENT
ASSOCIATION RETIREMENT
CORPORATION
by:
Stephen Wm. Nordholt/Date
Corporate Secretary
7
ICMA Retirement
457 Deferred Comp
R
.p
• Declarati
the ICMA Re
Retain this boo
� - 1
USING THE
457 DEFERRED COMPENSATION PLAN
RETAIN BOOKLET
This Booklet includes:
• Plan Document
• Declaration of Trust of the ICMA Retirement Trust
This is one of two booklets containing information relating to your
457 Deferred Compensation Plan with the ICMA Retirement Corporation.
Please read the information and retain it for your files.
If you have any questions concerning information in this booklet,
contact the Client Services staff, toll-free at (800) 326-7272.
23.
•
Deterred Coroperisatioir%
Platy% Docurr‘etlt
kAppeodix Pk) „
DEFERRED COMPENSATION PLAN DOCUMENT
ARTICLE 1. INTRODUCTION
The Employer hereby establishes the Employers Deterred
Compensation Plan, hereinafter referred to as the -Plan
The Plan consists of the provisions set forth in this document
The primary purpose of this Plan is to provide retirement
income and other deferred benefits to the Employees of the
Employer in accordance with the provisions of Section 45' of
the Internal Revenue Code of 1986. as amended (the -Code-)
This Plan shall be an agreement solely between the
Employer and participating Employees.
ARTICLE II. DEFINITIONS
Section 2.01 Account: The bookkeeping account
maintained for each Participant retlecu:ng the cu -
mutative amount cif the Participant's Deterred Com-
pensation. including any income. gains. losses, or
increases or decreases in market value attributable
to the Employer's investment of the Participant's
Deferred Compensation, and further reflecting any
distributions to the Participant or the Participant's
Beneficiary and any fees or expenses charged
against such Participant's Deferred Compensation.
Section 2.02 Administrator: The person or persons
named to carry out certain nondiscretionary ad-
ministrative functions under the Plan. as hereinafter
described. The Employer may remove any person
as Administrator upon 60 days advance notice in
writing to such person, in which case the Employer
shall name another person or persons to act as
Administrator. The Administrator may resign upon
60 days' advance notice in writing to the Employer.
in which case the Employer shall name another
person or persons to act as Administrator.
Section 2.03 Beneficiary: The person or persons desig-
nated by the Participant in his Joinder Agreement
who shall receive any benefits payable hereunder in
the event of the Participant's death_ In the event that
the Participant names two or more Beneficiaries.
each Beneficiary shall be entitled to equal shares of
the benefits payable at the Participant's death. un-
less otherwise provided in the Participant's Joinder
Agreement. If no beneficiary is designated in the
Joinder Agreement, if the Designated Beneficiary
predeceases the Participant. or it the designated
Beneficiary does not survive the Participant tor a
period of fifteen (15) days, then the estate of the
Participant shall be the Beneficiary.
Section 2.04 Deferred Compensation: The amount of
Normal Compensation otherwise payable to !he
Participant which the Participant and the Employer
mutuaiy agree to defer hereunder. any amount
credited to a Participant's Account by reason of a
transfer under section 6.03. or any other amount
which the Employer agrees to credit to a Participants
Account.
Section 2.05 Employee: Any individual who provides
services for the Employer. whether as an employee
of the Employer or as an independent contractor
09:89
and who has been designated by thio Ernorover as
ehg t ie to participate in the Plan
Section 2.06 includible Compensation: The amount ot
an Employee's compensation from the Employer for
a t: able year that is attributable so seivices per-
formed for the Employer ar id that is inaudible rt the
Employee's gross income for the Taxable year for
federal incrxme tax purposes. such term does not
include any amount excludable trorn gross income
under ttns Plan or any other plan desenbed m
Section 457(t) 0l the Code or any oiler amount
excludable horn gross income for teiderar rename tax
purposes. Includible Compensation shall be deter-
mined without regard 10 -ny community property
laws
Section 2.07 Joinder Agreement: An agreement en-
tered '*tto between an. ErryMoyec ono :rue E+roto'7C.
including any amendments or moduficstionsthereof
Such agreement shall nix the amount d Deterred
Cornpensabon. specify a preference among fie
investment alternatives designated by Me Employer.
despnate ate Employee's Beneaciaty or Benehpra-
nes. are incorporate the terms. conditions. and
provisions of the Plan by reference.
Section 2.08 Normal Compensation: The amount of
compensation which would be payable 10 a Partici-
pant by the Employer for a taxable year R no Joinder
Agreement were m effect to deter compensation
under ens Plan.
Section 2.09 Normal Retirement Age: Age 70-12. un
Less the Participant has elected an alternate Normal
Retirement Age by written instrument deevered 10
the Administrator prior to Separation train Service
A Participant's Normal Retirement Age -
the period during which a Partuypartt may utilize the
catch-up limitation of Section 5.02 hereunder. Once
a Participant has to any extent utilized the cacti -up
Irritation of Section 5.02, hisitter Normal Retire-
ment age may not be changed.
A participant's alternate Normal Reirertrertt Rte
may not be easter than the earliest date teat isle
Participate will become eligible to retire and receive
unreduced retirement benefitsumderlhe Employers
basic retirement plan covering tine Participant and
may not be later than the date me Participate we
attain•. age 70-1/2. If a Participant contw.i esemplor-
ment after attaining age 70-1/2, not hang previ-
ously elected an aRemate Normal Retirement Age.
the Participant's alternate Normal Retirement Age
shall not be later than the mandatory retirement age.
it any. established by the Employer. or the age at
which the Participant actually separates horn ser-
vice it the Employer has no mandatory retirement
age. it the Participant will not become eligible to
receive benefits under a basic retirement pian
maintained by the Employer. the Participant's after -
nate Normal Retirement Age may not be earlier than
age 55 and may not be later than age 70-1/2.
Section 2.10 Participant: Any Employee who has paled
the Plan pursuant to the requirements ot Amide P/.
Section 2.11 Plan Year: The calendar year.
Section 2.12 Retirement: The first date upon which both
of the following shall have occurred with respect to
a participant: Separation from Service and attain-
ment of age 65.
Section 2.13 Separation from Service: Severance of
the Participant's employment with the Employer
which constitutes a "separation from service' within
the meaning of Section 402(e)(4)(A)(iii) of the Code.
In general, a Participant shall be deemed to have
severed his employment with the Employer for pur-
poses of this Plan when, in accordance with the
established practices of the Employer, the employ-
ment relationship is considered to have actually
terminated. In the case of a Participant who is an
independent contractor of the Employer, Separation
from Service shall be deemed to have occurred
when the Participant's contract under which ser-
vices are performed has completely expired and
terminated, there is no foreseeable possibility that
the Employer will renew the contract or enter into a
new contract for the Participant's services, and it is
not anticipated that the Participant will become an
Employee of the Employer.
ARTICLE 1I1. ADMINISTRATION
Section 3.01 Duties of Employer: The Employer shall
have the authority to make all discretionary decisions
affecting the rights or benefits of Participants which
may be required in the administration of this Plan.
Section 3.02 Duties of Administrator. The Adminis-
trator, as agent for the Employer, shall perform
nondiscretionary administrative functions in con-
nection with the Plan. including the maintenance of
Participants' Accounts. the provision of periodic
reports of the status of each Account. and the
disbursement of benefits on behalf of the Employer
in accordance with the provisions of this Plan.
ARTICLE IV. PARTICIPATION IN THE PLAN
Section 4.01 Initial Participation: An Employee may
become a Participant by entering into a Joinder
Agreement prior to the beginning of the calendar
month in which the Joinder Agreement is to become
effective to defer compensation not yet eamed.
Section 4.02 Amendment of Joinder Agreement: A
Participant may amend an executed Joinder
Agreement to change the amount of compensation
not yet eamed which is to be deferred (including the
reduction of such future deferrals to zero) or to
change his investment preference (subject to such
restrictions as may result from the nature or terms of
any investment made by the Employer). Such
amendment shall become effective as of the begin-
ning of the calendar month commencing after the
date the amendment is executed. A Participant may
at any time amend his Joinder Agreement to change
the designated Beneficiary, and such amendment
shall become effective immediately.
ARTICLE V. LIMITATIONS ON DEFERRALS
Section 5.01 Normal Limitation: Except as provided in
section 5.02, the maximum amount of Deferred
Compensation for any Participant for any taxable
year shall not exceed the lesser of 57.500.00 or 33-
1/3 percent of the Participant's Includible Compen-
sation for the taxable year. This limitation wilt ordi-
narily be equivalent to the lesser of 57.500.00 or 25
percent of the Participant's Normal Compensation
Section 5.02 Catch -Up Limitation: For each of the last
three (3) taxable years of a Participant ending be-
fore his attainment of Normal Retirement Age, the
maximum amount Of Deferred Compensation shall
be the lesser of: (1) $15,000 or (2) the sum of (t) the
Normal Limitation for the taxable year, and (ti) the
Normal Limitation for each pnor taxable year of the
Participant commencing atter 1978 less the amount
of the Participant's Deferred Compensation for such
prior taxable years. A prior taxable year shall be
taken into account under the preceding sentence
only if (i) the Participant was eligible to participate in
the Plan for such year (or in any other eligible
deferred compensation plan established under
Section 457 of the Code which is properly taken into
account pursuant to regulations under section 457),
and (ii) compensation (if any) deferred under the
Plan (or such other plan) was subject to the deferral
limitations set forth in Section 5.01.
Section 5.03 Other Plans: The amount excludable from
a Participant's gross income under this Plan or any
other eligible deferred compensation plan under
section 457 of the Code shall not exceed 57.500-00
(or such greateramounl allowed under Section 5.02
of the Pian). less any amount excluded from gross
income under section 403(b), 402(a)(8), or 402
(hX1)(8) of the Code, or any amount with respect to
which a deduction is allowable by reason of a
contribution to an organization described in section
501(c)(18) of the Code.
ARTICLE VI. INVESTMENTS AND ACCOUNT VALUES
Section 6.01 Investment of Deferred Compensation:
AU investments of Participant's Deferred Compen-
sation made by the Employer, including all property
and rights purchased with such amounts and all
income attributable thereto. shall be the sole prop-
erty of the Employer and shall not be held in trust for
Participantsorascollateral security for the fulfillment
of the Employer's obligations under the Plan. Such
property shall be subject to the claims of general
creditors of the Employer, and no Participant or
Beneficiary shall have any vested interest or secured
or preferred position with respect to such property or
have any claim against the Employer except as a
general creditor.
Section 6.02 Crediting of Accounts: The Participant's
Account shall reflect the amount and value of the
investments or other property obtained by the Em-
ployer through the investment of the Participant's
Deferred Compensation. It is anticipated that the
Employer's investments with respect to a Partici-
pant will conform 10 the investment preference
specified in the Participant's Joinder Agreement.
but nothing herein shall be construed to require the
Employer to make any particular investment of a
Participant's Deferred Compensation. Each Partici-
pant shall receive periodic reports. not less frequently
than annually. showing the then -current value of his
Account.
Section 6.03 Transfers: (a) Incoming Transfers: A
transfer may be accepted from an eligible deferred
compensation plan maintained by another employer
and credited to a Participant's Account under the
Plan if (i) the Participant has separated from service
with that employer and become an Employee of the
Employer, and (ii) the other employer's plan pro-
vides that such transfer will be made. The Employer
may require such documentation from the prede-
cessor plan as it deems necessary to effectuate the
1
transfer, to confirm that such plan is an eligible
deferred compensation plan within the meaning of
Section 457 of the Code. and to assure that transfers
are provided for under such plan. The Employer
may refuse to accept a transfer in the form of assets.
other than cash. unless the Employer and the
Administrator agree to hold such other assets under
the Plan. Any such transferred amount shall not be
treated as a deferral subject to the limitations of
Article V, except that. for purposes of applying the
limitations of Sections 5.01 and 5.02. an amount
deferred dunng any taxable year under the plan
from which the transfer is accepted shall be treated
as if it has been deferred under this Plan during such
taxable year and compensation paid by the transferor
employer shall be treated as if it had been paid by the
Employer.
(b) Outgoing Transfers: An amount may be trans-
ferred to an eligible deferred compensation plan
maintained try another employer, and charged to a
Participant's Account under this Plan, if (i) the Par-
ticipant has separated from service with the Em-
ployer and become an employee of the other em-
ployer, (ii) the •'ther employer's plan provides that
such transfer will be accepted, and (in) the Partici-
pant and the employers have signed such agree-
ments as are necessary to assure that the Employers
liability to pay benefits to the Participant has been
discharged and assumed by the other employer.
The Employer may require such documentation
from the other plan as it deems necessary 10 effec-
tuate the transfer, to confirm that such plan is an
eligible deferred compensation plan within the
meaning of section 457 of the Code. and to assure
that transfers are provided for under such plan.
Such transfers shall be made only under such
circumstances as are permitted under section 457
of the Code and the regulations thereunder.
Section 6.04 Employer Liability: In no event shall the
Employer's liability to pay benefits to a Participant
under Article VI exceed the value of the amounts
credited to the Participant's Account; the Employer
shall not be liable for losses arising from deprecia-
tion or shrinkage in the value of any investments
acquired under this Plan.
ARTICLE VII. BENEFITS
Section 7.01 Retirement Benefits and Election on
Separation from Service: Except as otherwise
provided in this Article VII, the distribution of a
Participant's Account shall commence as of April 1
of the calendar year after the Plan Year of the
Participant's Retirement, and the distribution of such
Retirement benefits shall be made in accordance
with one of the payment options described in Sec-
tion 7.02. Notwithstanding the foregoing, the Partici-
pant may irrevocably elect within 60 days following
Separation from Service to have the distribution of
benefits commence on a fixed or determinable date
other than that described in the preceding sentence
which is at least 60 days after the date such election
is delivered in writing to the Employer and forwarded
to the Administrator. but not later than April 1 of the
year following the year of the Participant's Retire-
ment or attainment of age 70-1/2, whichever is later.
Section 7.02 Payment Options: As provided in Sections
7.01, 7.04, and 7.05, a Participant or Beneficiary,
may elect to have the value of the Participant's
Account distributed in accordance with one of the
following payment options, provided that such op-
tion is consistent with the limitations set forth in
Section 7.03:
(a) Equal monthly, quarterly, semi-annual or annual .
payments in an amount chosen by the Participant.
continuing until his Account is exhausted;
(b) One lump -sum payment;
(c) Approximately equal monthly, quarterly, semi-
annual or annual payments, calculated to
continue for a period certain chosen by the
Participant.
(d) Annual Payments equal to the minimum
distnbutions required under Section 401(a)(9) of
the Code over the life expectancy of the
Participant or over the lite expectancies of the
Participant and his/her Beneficiary.
(e) Payments equal to payments made by the issuer
of a retirement annuity policy acquired by the
Employer.
(f) Any other payment option elected by the
Participant and agreed to by the Employer and
Administrator, provided that such option must
provide for substantially nonincxeasing payments
for any period after the latest benefit
commencement date under Section 7.01.
A Participant's or Beneficiary's election of a
payment option must be made at least 30 days
before the payment of benefits is to commence.
if a Participant or Beneficiary fails to make a
timely election of a payment option, benefits
shall be paid monthly under option (c) above for
a period of five years.
Section 7.03 Limitation on Options: No payment option
may be selected by a Participant or Beneficiary
under Sections 7.02, 7.04, or 7.05 unless it satisfies
the requirements of Sections 401(a)(9) and 457(d)(2)
of the Code, including that payments commencing
before the death of the Participant shad satisfy the
incidental death benefits requirement under Section
457(d)(2)(B)(i)(t). Unless otherwise elected by the
Participant, all determinations under Section
401(a)(9) shall be made without recalculation of life
expectancies.
Section 7.04 Post-retirement Death Benefits: (a) Should
the Participant die after he/she has begun to receive
benefits under a payment option, the remaining
payments, if any, under the payment option shall be
payable to the Participant's Beneficiary commenc-
ing within the 30 -day period commencing with the
61st day after the Participant's death. unless the
Beneficiary elects payment under a different pay-
ment option that is available under Section 7.02
within 60 days of the Participant's death. Any different
payment option elected by a Beneficiary under this
section must provide for payments ata rate that is at
least as rapid as under the payment option that was
applicable to the Participant. In no event shall the
Employer or Administrator be liable to the Beneficiary
for the amount of any payment made in the name of
the Participant before the Administrator receives
proof of death of the Participant.
(b) If the designated Beneficiary does not continue
to live for the remaining period of payments under
the payment option. then the commuted value of any
remaining payments under the payment option shall
be pard in a lump sum to the estate of the Benefi-
ciary. In the event that the Participant's estate is the
Beneficiary, the commuted value of any remaining
payments under the payment option shall be paid to
the estate in a lump sum.
Section 7.05 Pre -retirement Death Benefits: (a) Should
the Participant die before he/she has begun to
receive the benefits provided by Section 7.01, the
value of the Participant's Account shall be payable
to the Beneficiary commencing within the 30 -day
period commencing on the 91st day after the
Participant's death. unless the Beneficiary irrevocably
elects a different fixed or determinable benefit com-
mencement date within 90 days of the Participant's
death. Such benefit commencement date shall be
not later than the later of (i) December 31 of the year
following the year of the Participant's death. or (ii) if
the Beneficiary is the Participant's spouse. December
31 of the year in which the Participant would have
attained age 70-1/2.
(b) Unless a Beneficiary elects a different payment
option prior to the benefit commencement date.
death benefits under this Section shall be paid in
approximately equal annual installments over five
years, or over such shorter period as may be neces-
sary to assure that the amount of any annual install-
ment is not less than S3,500. A Beneficiary shall be
treated as if he/she were a Participant tor purposes
of determining the payment options available under
Section 7.02. provided. however. that the payment
option chosen by the Beneficiary must provide for
payments to the Beneficiary over a period no longer
than the life expectancy of the Beneficiary. and
provided that such period may not exceed fifteen
(15) years if the Beneficiary is not the Participant's
spouse.
(c) In the event that the Beneficiary dies before the
payment of death benefits has commenced or been
completed. the remaining value of the Participant's
Account shall be paid to the estate of the Beneficiary
in a lump sum. In the event that the Participant's
estate is the Beneficiary, payment shall be made to
the estate in a lump sum.
Section 7.06 Unforeseeable Emergencies: (a) in the
event an unforeseeable emergency occurs. a Par-
ticipant may apply to the Employer to receive that
part of the value of his Account that is reasonably
needed to satisfy the emergency need. If such an
application is approved by the Employer, the Partici-
pant shall be paid only such amount as the Employer
deems necessary to meet the emergency need, but
payment shall not be made to the extent that the
financial hardship may be relieved through cessa-
tion of deferral under the Plan. insurance or other
reimbursement, or liquidation of other assets to the
extent such liquidation would not itself cause severe
financial hardship.
(b) An unforeseeable emergency shall be deemed
to involve only circumstances of severe financial
hardship to the Participant resulting from a sudden
unexpected illness, accident, or disability of the
Participant or of a dependent (as defined in Section
152(a) of the Code) of the Participant, loss of the
Participant's property due to casualty. or other simi-
lar and extraordinary unforeseeable circumstances
arising as a result of events beyond the control of the
Participant. The need to send a Participants child to
college or to purchase a new home shall not be
considered unforeseeable emergencies The deter -
ruination as to whether such an unforeseeable
emergency exists shall be based on the merits of
each individual case:
Section 7.07 Transitional Rule for Pre -1989 Benefit
Elections: In the event that. prior to January 1 1989.
a Participant or Beneficiary has commenced re-
ceiving benefits under a payment option or has
irrevocably elected a payment option or benefit
commencement date. then that payment option or
election shall remain in effect notwithstanding any
other provision of this Plan.
ARTICLE VIII. NON -ASSIGNABILITY
Section 8.01 In General: Except as provided in Section
8.02, no Participant or Beneficiary shall have any
right to commute, sell, assign, pledge, transfer or
otherwise convey or encumber the nght to receive
any payments hereunder. which payments and rights
are expressly declared to be non -assignable and
non -transferable.
Section 8.02 Domestic Relations Orders: (a) Allow-
ance of Transfers: To the extent required under a
final judgment, decree. or order (including approval
of a property settlement agreement) made pursuant
to a state domestic relations law, any portion of a
Participant's Account may be paid or set aside for
payment to a spouse. former spouse. or child of the
Participant. Where necessary to carry out the terms
of such an order, a separate Account shall be
established with respect to the spouse. former
spouse. or child who shall be entitled to make
investment selections with respect thereto in the
same manner as the Participant: any amount so set
aside for a spouse, former spouse, or child shall be
paid out in a lump sum at the earliest date that
benefits may be paid to the Participant, unless the
order directs a different time or form of payment.
Nothing in this Section shall be construed to autho-
rize any amount to be distributed under the Plan at
a time or in a form that isnot permitted under Section
457 of the Code. Any payment made to a person
other than the Participant pursuant to this Section
shall be reduced by required income tax withhold-
ing; the fact that payment is made to a person other
than the Participant may not prevent such payment
from being includible in the gross income of the
Participant tor withholding and income tax reporting
purposes.
(b) Release from Liability to Participant: The
Employer's liability to pay benefits to a Participant
shall be reduced to the extent that amounts have
been paid or set aside for payment to a spouse,
former spouse, or child pursuant to paragraph (a) of
this Section. No such transfer shall be effectuated
unless the Employer or Administrator has been
provided with satisfactory evidence that the Em-
ployer and the Administrator are released from any
further claim by the Participant with respect to such
amounts. The Participant shalt be deemed to have
released the Employer and the Administrator from
any claim with respect to such amounts, in any case
in which (i) the Employer or Administrator has been
served with legal process or otherwise joined in a
proceeding relating to such transfer. (ii) the Partici-
pant has been notified of the pendency of such
proceeding in the manner prescribed by the law of
the jurisdiction in which the proceeding is pending
for service of process in such action or by mail from
the Employer or Administrator to the Participant's
last known mailing address. and (Hi) the Partici-
pant tails to obtain an order of the court in the
proceeding rebeving the Employer or Administra-
tor from the obbgation to comply with the judg-
ment, decree, or order.
(c) Participation in Legal Proceedings: The Em-
ployer and Administrator shall not be obligated to
defend against or set aside any tudgment, decree.
or order descnbed in paragraph (a) or any legal
order relating to the garnishment of a Participant's
benefits. unless the Lull expense of such legal action
is borne by the Participant. In the event that the
Panicrpant s action (or inaction) nonetheless causes
Me Employer or Administratorto incur Suet) expense.
the amount of the expense may be charged against
the Participant's Account and thereby reduce the
Employer's obligation to pay benefits to the Partici-
pant. In the course of any proceeding relating to
divorce, separation, or Child support, the Employer
and Administrator shall be authorized to drsdose
information relating to the Participant's Account to
the Participant's spouse. former spouse. or child
(including the legal representatives of the spouse.
former spouse, or child). or to a court.
ARTICLE IX. RELATIONSHIP TO OTHER PLANS AND
EMPLOYMENT AGREEMENTS
This plan serves in addition to any other retirement.
pension. or benefit plan or system presently in existence or
hereinafter established for the benefit of the Employer's
employees. and participation hereunder shall not affect
benefits receivable under any such plan or system. Nothing
contained in this Plan shall be deemed to constitute an
employment contract or agreement between any Partici-
pant and the Employer or to give any Participant the nght
to be retained in the employ of the Employer. Nor shall
anything herein be construed to modify the terms of arty
employment contract or agreement between a Participant
and the Employer.
ARTICLE X. AMENDMENT OR TERMINATION OF PLAN
The Employer may at any time amend this Plan provided
that it transmits such amendment in writing to the Administra-
tor at least 30 days pnor to the effective date of the amend-
ment. The consent of the Administrator shalt not be required
in order for such amendment to become effective. but the
Administrator shall be under no obligation to continue acting
as Administrator hereunder it it disapproves of such amend-
ment. The Employer may at any time terminate this Plan.
The Administrator may at any time propose an amend-
ment to the Plan by an instrument in wnting transmitted to the
Employer at Least 30 days before the effective date of the
amendment. Such amendment shall become effective un-
less. within such 30 -day period. the Employer notifies the
Administrator in wnting that it disapproves such amendment.
in which case such amendment shall not become effective.
In the event of such disapproval. the Administrator shall be
under no obbgation to continue acting as Administrator
hereunder. If this Plan document constitutes an amendment
and restatement of me Plan as previously adopted by the
Employer. the amendments contained herein shall become
effective on January 1, 1989, and the terms of the preceding
Plan document shall remain in effect through December 31,
1988.
Except as may be required to maintain the status of the
Plan as an etigtbte deterred compensation plan under Section
457 of the Code or to comply with other applicable laws. no
amendment or termination of the Plan shall divest any
Participant of any rights with respect to compensation de-
ferred before the date of the amendment or termination.
ARTICLE XI. APPLICABLE LAW
This Plan shall be construed under the laws of Rte state
where the Employer is located and is established with the
intent that 4 meet the requirements of an -eligible deterred
compensation plan under Section 457 of the Code. as
amended. The provisions of this Plan shall be interpreted
wherever possible in conformity with the requirements of that
section,
ARTICLE XtI.
Any notice to a party of this plan document shall be given
at the last address provided in writing from one party to
another pat, . Any notice such matted shall be determined to
have been received by such party.
-1
ICMA
RETIREMENT
CORPORATION
DECLARATION OF TRUST
OF ICMA RETIREMENT TRUST
ARTICLE I. NAME DEFINITIONS
Section 1.1 Name: The Name of the Trust. as amended and
restated hereby. is the ICMA Retirement Trust
Section 1.2 Definitions: Wherever they are used herein,
She following terms shall have the following respective
meanings:
(a) Bylaws. The bylaws referred to in Section 4.1
hereof. as amended from time to time.
(b) Deferred Compensation Plan. A deferred
compensation plan established and maintained by
a Public Employer for the purpose of providing
retirement income and other deterred benefits to its
employees in accordance with the provision of
section 457 of the Internal Revenue Code of 1954.
as amended.
(c) Employees. Those employees who participate in
Qualified Plans.
(d) Employer Trust. A trust created pursuant to
an agreement between RC and a Public Employer
for the purpose of investing and administenng the
funds set aside by such Employer in connection
with its Deferred Compensation agreements with
its employees or in connection with its Qualified
Plan.
(e) Guaranteed Investment Contract. A contract
entered into by the Retirement Trust with insurance
companies that provides for a guaranteed rate of
retum on investments made pursuant to such
contract.
(1) ICMA. The International City Management
Association.
(g) ICMAIRC Trustees. Those Trustees elected by
the Public Employers who. in accordance with the
provisions of Section 3.1(a) hereof. are also
members, or former members. of the Board of
Directors of ICMA or RC.
(h) Investment Adviser. The Investment Adviser that
enters into a contract with the Retirement Trust to
provide advice with respect to investment of the
Trust Property.
(I) Portfolios. The Poitfottosofinvestment established
by the Investment Adviser to the Retirement Trust.
under the supervision of the Trustees. for the
purpose of providing investments for the Trust
Property.
(j) Public Employee Trustees. Those Trustees
elected by the Public Employers who. in accordance
with the provision of Section 3.1(a) hereof. are full-
time employees of Public Employers.
(k) Public Employer Trustees. Public Employers who
serve as trustees of the Qualified Plans.
Public Employer. A unit of state or local
government, or any agency or instrumentality
thereof, that has adopted a Deferred Compensation
Plan or a Qualified Plan and has executed this
Declaration of Trust.
(m) Qualified Plan. A plan sponsored by a Public
Employer for the purpose of providing retirement
income to its employees which satisfies the
qualification requirements of Section 401 of the
Internal Revenue Code. as amended.
(n) RC. The International City Management Association
Retirement Corporation.
(i)
(o) Retirement Trust. The Trust created by the
Declaration of Trust.
(p) Trust Property. The amounts held in the
Retirement Trust on behalf of the Public
Employers in connection wtth Deferred
Compensation Plans and on behalf of the Public
Employer Trustees for the exclusive benefit of
Employees pursuant to Qualified Plans. The
Trust Property shall include any income resulting
from the investment to the amounts so held.
(q) Trustees. The Public Employee Trustees and
iCMA+RC Trustees elected by the Public Employers
to serve as members of the Board of Trustees of the
Retirement Trust.
ARTICLE 1L CREATION AND PURPOSE OF THE TRUST;
OWNERSHIP OF TRUST PROPERTY
Section 2.1 Creation: The Retirement Trust is created and
established by the execution of this Declaration of Trust
by the Trustees and the Public Employers.
Section 2.2 Purpose: The purpose of the Retirement Trust
is to provide for the Commingled investment of funds
held by the Public Employers in connection with their
Deferred Compensation and Qualified Plans. The
Trust Property shall be invested in the Portfolios, in
Guaranteed Investment Contracts, and in other invest-
ments recommended by the Investment Adviser under
the supervision of the Board of Trustees. No part of the
Trust Property will be invested in securities issued by
Public Employers.
Section 2.3 Ownership of Trust Property: The Trustees
shall have legal title to the Trust Property. The Public
Employers shall be the beneficial owners of the portion
of the Trust Property allocable to the Deterred Com-
pensation Plans. The porton of the Trust Property
allocable t0 the Qualified Plans shall be held for the
Public Employer Trustees for the exclusive benefit of
the Employees.
ARTICLE III. TRUSTEES
Section3.1 Number and Qualification of Trustees:(a)The
Board of Trustees shall consist of nine Trustees. Five
of the Trustees shall be !ulI-time employees of a Public
Employer (the Public Employee Trustees) who are
authorized by such Public Employer to serve as Trustee.
The remaining four Trustees shall consist of two per-
sons who. at the time of election to the Board of
Trustees. are members of the Board of Directors of
ICMA and two persons who. at the time of election. are
members of the Board o1 Directors of RC (the ICMA/RC
Trustees. One of the Trustees who is a director of
ICMA. and one of the Trustees who is a director of RC.
shall. at the time of election, be full-time employees of
a Public Employer.
(b) No person may serve as a Trustee for more than
one term in any ten-year period.
Section 3.2 Election and Term: (a) Except for the Trustees
appointed to fill vacancies pursuant to Section 3.5
hereof, the Trustees shall be elected by a vote of a
majority of the Public Employers in accordance with the
procedures set forth in the By -Laws. (b) At the first
election of Trustees. three Trustees shall be elected for
a term of three years. three Trustees shall be elected for
a term of two years and three Trustees shall be elected
for a term of one year. At each subsequent election.
three Trustees shall be elected for a term of three years
and until his or her successor is elected and qualified.
r
Section 3.3 Nominations: The Trustees who are full-time
en .ployees of Public Employers shall serve as the
Nominating Committee for the Public Employee Trust-
ees. The Nominating Committee shall choose candi-
dates for Public Employee Trustees in accordance with
the procedures set forth in the By -Laws.
Section 3.4 Resignation and Removal: (a) Any Trustee
may resign as Trustee (without need for prior or subse-
quent accounting) by an instrument in writing signed by
the Trustee and delivered to the other Trustees and
such resignation shall be effective upon such deliver/.
or at a later date according to the terms of the instru-
ment. Any of the Trustees may be removed for cause.
by a vote of a majority of the Public Employers. (b)
Each Public Employee Trustee shall resign his or her
position as Trustee within sixty days of the date on
which he or she ceases 10 be a Tull -time employee of a
Public Employer.
Section 3.5 Vacancies: The term of office of a Trustee shall
terminate and a vacancy shalt occur in the event of the
death, resignation, removal, adjudicated incompetence
or other incapacity to perform the duties of the office of
a Trustee. In the case of a vacancy, the remaining
Trustees shall appoint such person as they in their
discretion shall see fit (subject to the limitations set forth
in this Section). to serve for the unexpired portion of the
term of the Trustee who has resigned or otherwise
ceased to be a Trustee. The appointment shall be
made by a written instrument signed by a majority of the
Trustees. The person appointed must be the same
type of Trustee (i.e.. Public Employee Trustee or ICMA/
RC Trustee) as the person who has ceased to be a
Trustee. An appointment of a Trustee may be made in
anticipation of a vacancy to occur at a later date by
reason of retirement or resignation. provided that such
appointment shall not become effective prior to Such
retirement or resignation. Whenever a vacancy in the
number of Trustees shall occur, until such vacancy is
filled as provided in this Section 3.5. the Trustees in
office. regardless of their number, shall have all the
powers granted to the Trustees and shall discharge alt
the duties imposed upon the Trustees by this Declara-
tion. A written instrument certifying the existence of
such vacancy signed by a majority of the Trustees shall
be conclusive evidence of the existence of such va-
cancy.
Section 3.6 Trustees Serve in Representative Capacity:
By executing this Declaration. each Public Employer
agrees that the Public Employee Trustees elected try
the Public Employers are authorized to act as agents
and representatives of the Public Employers collec-
tively.
ARTICLE IV. POWERS OF TRUSTEES
Section 4.1 General Powers: The Trustees shall have the
power to conduct the business of the Trust and to carry
on its operations. Such power shall include, but shall
not be limited to, the power to:
(a) receive the Trust Property from the Public
Employers, Public Employer Trustees or other
Trustee of any Employer Trust;
(b) enter into a contract with an Investment Adviser
providing, among other things, tor the establishment
and operation of the Portfolios, selection of the
Guaranteed Investment Contracts in which the
Trust Property may be invested. selection of the
other investments for the Trust Property and the
payment of reasonable fees to the Investment
Adviser and to any sub -investment adviser retained
by the Investment Adviser;
(c) review annually the performance of the Investment
Adviser and approve annually the contract with
such Investment Adviser;
(d) invest and reinvest the Trust Property in the
Portfolios, the Guaranteed Interest Contracts and
in any other investment recommended by the
Investment Adviser. but not including securities
issued by Public Employers. provided that if a
Public Employer has directed that its monies be
invested in specified Portfolios or in a Guaranteed
Investment Contract, the Trustees of the
Retirement Trust shall invest such monies in
accordance with such directions;
(e) keep such portion of the Trust Property in cash or
cash balances as the Trustees. from time to time.
may deem to be in the best interest of the
Retirement Trust created hereby without liability
for interest thereon;
(t) accept and retain for such time as they may deem
advisable any securities or other property received
or acquired by them as Trustees hereunder.
whether or not such securities or other property
would normally be purchased as investment
hereunder;
(g) cause any securities or other property held as part
of the Trust Property to be registered in the name
of the Retirement Trust or in the name ofa nominee.
and to hold any investments in bearer from, but the
books and records of the Trustees shall at alt times
show that all such investments are a part of the
Trust Property;
(h) make, execute, acknowledge. and deliver any and
all documents of transfer and conveyance and any
and all other instruments that maybe necessary or
appropriate to carry out the powers herein granted:
(1) vote upon any stock, bonds. or other securities;
give general or special prox ies or powers of attorney
with or without power of substitution:exercise any
conversion pnvileges, subscription rights. or other
options. and make any payments incidentalthereto;
ereto:
oppose. or consent to. or otherwise participate in,
corporate reorganizations or to other changes
affecting corporate securities. and delegate
discretionary powers and pay any assessments Of
charges in connection therewith; and general
exercise any of the powers of an owner wrrh
respect to stocks, bonds. securities or other
property held as part of the Trust Properly;
(j) enter into contracts or arrangements to goods or
services required in connection with the operation
of the Retirement Trust, including. but not limited
to, contracts with custodians and contracts for the
provision of administrative services;
(k) borrow or raise money for the purposes 01 the
Retirement Trust in such amount. and upon such
terms and conditions, as the Trustees shall deem
advisable. provided that the aggregate amount of
such borrowings shag not exceed 30% of the
value of the Trust Properly. No person lending
money to the Trustees shad be bound to see the
application of the money lent or to inquire into its
validity. expediency or propriety or any such
borrowing:
(I) incur reasonable expenses as required for the
operation of the Retirement Trust and deduct such
expenses from of the Trust Property;
(m) pay expenses properly allocable to the Trust
Property incurred in connection with the Deferred
Compensation Plans, Qualified Plans. or the
Employer Trusts and deduct such expenses from
the portion of the Trust Property to whom such
expenses are property allocable;
(n) pay out of the Trust Property all real and personal
property taxes, income taxes and other taxes of
any and all kinds which, in the opinion of the
Trustees, are properly levied, or assessed under
existing or future taws upon, or in respect of, the
(0)
(P)
(q)
Trust Property ano ...locate any such taxes to the
appropnate accounts.
adopt, amend and repeal the bylaws. provided that
such bylaws are at alt times consistent with the
terms of this Declaratron of Trust:
employ persons to make available interests in the
Retirement Trust to employers eligible to maintain
a Deterred Compensation Plan under Section 457
or a Qualified Plan under Section 401 of the Internal
Revenue Code, as amended;
issue the Annual Report of the Retirement Trust.
and the disclosure documents and other literature
used by the Retirement Trust:
(r) make loans, including the purchase of debt
obligations. provided that all such loans shall bear
interest at the current market rate:
contract for. and delegate any powers granted
hereunder to. such officers. agents. employees.
auditors and attorneys as the Trustees may select.
provided that the Trustees may not delegate the
powers set forth in paragraphs (b). (c) and (o) of this
Section 4.1 and may not delegate any powers if
such delegation would violate their fiduciary duties:
provide for the indemnification of the Officers and
Trustees of the Retirement Trust and purchase
fiduciary insurance:
(u) maintain books and records. including separate
accounts loreach Public Employer. Public Employer
Trustee or Employer Trust and such additional
separate accounts as are required under. and
consistent with. the Deferred Compensation or
Qualified plan of each Public Employer; and
(v) do all such acts- take all such proceedings. and
exercise all such nghts and privileges. although not
specifically mention herein, as the Trustees rnay
deem necessary or appropnate to administer the
Trust Properly and to carry out the purposes of the
Retirement Trust.
Section 4.2 Distribution of Trust Property: Distnbutions of
the Trust property shall be made to, or on behalf of. the
Public Employer or Public Employer Trustee. in accor-
dance with the terms of the Deterred Compensation
Plans. Qualified Plans or Employer Trusts. The Trust-
ees of the Retirement Trust shall be fully protected in
making payments in accordance with the directions of
the Public Employers, Public Employer Trustees or
other Trustee of the Employer Trusts without ascertain-
ing whether such payments are in compliance with the
provision of the Deferred Compensation or Qualified
Plans, or the agreements creating the Employer Trusts.
Section 4.3 Execution of Instruments: The Trustees may
unanimously designate any one or more of the Trust-
ees to execute any instrument or document on behalf
of all. including but not limited to the signing or endorse-
ment of any check and the signing of any applications.
insurance and other contracts, and the action of such
designated Trustee or Trustees shall have the same
force and effect as if taken by all the Trustees.
ARTICLE V. DUTY OF CARE AND LIABILITY OF
TRUSTEES
Section 5.1 Duty of Care: In exercising the powers
hereinbefore granted to the Trustees. the Trustees
shall perform all acts within their authority for the
exclusive purpose of providing benefits for the Public
Employers in connection with Deterred Compensation
Plans and Public Employer Trustees pursuant to Ouati-
tied Plans. and shall perform such acts wan the care.
skill. prudence and diligence in the circum; • . : ; men
prevailing that a prudent person acting in a t,. • capacity
and familiar with such matters would use in the conduct
of an enterprise of a like character and with. . e a:rris
(s)
(t)
Section 5.2 Liability: The Trustees shall not be liable to any
mistake of judgment or other action taken in good faith.
and for any action taken or omitted in reliance in good
Lauth upon the books of account or other records of the
Retirement Trust. upon the opinion of counsel. or upon
reports made to the Retirement Trust by any of its
officers. employees or agents or by the Investment
Adviser or any sub -investment adviser. accountants.
appraisers or other experts or consultant selected with
reasonable care by the Trustees. officers or employees
of the Retirement Trust. The Trustees shall also not be
liable for any loss sustained by the Trust Properly by
reason of any investment made In good lash and in
accordance with the standard of care set forth in
Section 5.1.
Section 5.3 Bond: No Trustee shall be obligated to give any
bond or other security for the performance of any of his
or her duties hereunder.
ARTICLE VI. ANNUAL REPORT TO SHAREHOLDERS
The Trustees shalt annually submit to the Public Employers
and Public Employer Trustees a written report of the transac-
tions of the Retirement Trust. including financial statements
which shall be certified by independent public accountants
chosen by the Trustees.
ARTICLE VII. DURATION OR AMENDMENT OF
RETIREMENT TRUST
Section 7.1 Withdrawal: A Public Employer or Public Em-
ployer Trustee may, at any time. withdraw from Mrs
Retirement Trust by defivenng to the Board of Trustees
a written statement of withdrawal. In such statement.
the Public Employer or Public Employer Trustee shall
acknowledge that the Trust Property allocable to the
F'ublic Employer is der wed from compensation de-
ferred by employees of such Public Employer pursuant
to its Deferred Compensation Plan or from contnbu-
ticns to the accounts of Employees pursuant to a
Qualified Plan, and shall designate the financial insMu-
tion t0 which such property shall be transferred by the
Trustees of the Retirement Trust or by the Trustee of
the Employer Trust.
Section T2 Duration: The Retirement Trust shatt continue
until terminated by the vote of a majority of the Public
Employers, each 'asting one vote. Upon termination.
all of the Trust Properly shall be paid out to the Pubic
Employers. Public Employer Trustees or the Trustees
of the Employer Trusts. as appropnate.
Section 7.3 Amendment: The Retirement Trust may be
amended by the vote o1 a majority of the public Employ-
ers. each casting one vote.
Section 7.4 Procedure: A resolution to terminate or amend
the Retirement Trust or to remove a Trustee shall be
submitted to a vote of the Pudic Employers ii: (i) a
majority of the Trustees so direct. or. (14 a petition
requesting a vote Signed by not less that 25 percent of
the Public Employers. is submitted to the Trustees.
ARTICLE Vitt. MISCELLANEOUS
Section 8.1 Governing Law: Except as otherwise required
by state or local law. this Declaration of Trust and the
Retirement Trust hereby created shall be construed
and regulated by the laws of the District of Columbia.
Section 8.2 Counterparts: This Declaration may be ex-
ecuted by the Public Employers and Trustees in two or
more counterparts. each of which shall be deemed an
original but alt of which together shall constitute one
and the same instrument.
RESOLUTION N0. 93-56
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING A CONTRACT WITH INTERNATIONAL CITY MANAGER'S ASSOCIATION
(ICMA) RETIREMENT CORPORATION AS A CO -ADMINISTRATOR WITH
GREAT WESTERN BANK OF THE CITY OF LODI'S DEFERRED COMPENSATION PLAN
BS IT RESOLVED, that the Lodi City Council does hereby approve
and authorize the City Manager to execute a contract with ICMA
Retirement Corporation ae a co -administrator with Great Western Bank of
the City of Lodi's Deferred Compensation Pian, a copy of which Pian and
contract is on file in the office of the City Clerk.
Dated: Way 5. 1993
I hereby certify that Reeolution No. 93-56 was paeeed and adopted
by the Lodi City Council in a regular meeting held May 5, 1993 by the
following vote:
Ayes: Council Members - Mann, Siegiock, Snider and Pennino
(Mayor)
Noss: Council Membere - Davenport
Absent: Council Members - None
s►r Perrin
y Cler
93-56
RES9356/TXTA.02J
CITY COUNCIL '`
PltiltIP A PFNNINO. Mayor
TACK A SIICLOCK
Mayor Pro Tempore
RAY C PAVE NPORI
STI P1IIN 1 MANN
IOHN R (Randvl SNIDER
001.44 THOMAS A. P1 Tl RSON
CITY OF LODI
(!TY' HALL. 221 WEST PINE STREET
PO BOX 1001,
I 0131. CALIFORNIA 9S241-1910
1209) 334.5634
FAX 1209) 111 67.0.5
May 17, 1993
Ms. Annette Marcelo
ICMA
2101 Webster Street, Suite 1500
Oakland, California 94612
Dear Me. Marcelo:
Cay Manager
JENNIFER M PERRIN
City Clerk
000 McNA11
Crly Attorney
Enclosed please find two executed copies of the Administrative Services
Agreement and a certified copy of Resolution No. 93-56, which was
approved by the Lodi City Council at its meeting of May S, 1993.
Please forward one original back to the City Clerk's office following
execution by Mr. Stephen Wm. Nordholt. Should you have any questions
regarding this matter, please feel free to contact our office.
Very truly yours,
_ l :1 •
nnife M
ity Cl k
JMP/pn