Loading...
HomeMy WebLinkAboutAgenda Report - June 16, 1993 (69)d F CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: International City Management Association (ICMA) Deferred Compensation Plan and Trust Agreement MEETING DATE: June 16, 1993 PREPARED BY: Assistant City Manager RECOMMENDED ACTION•: That the City Council adopt the attached resolution approving t.)•• ICMA Retirement Corporation Deferred Compensation Plan and executing the appropriate Trust Agreement. BACKGROUND: The Council has authorized the City to include the ICMA Retirement Corporati,n Deferred Compensation Plan as an additional option for employees. The final action required by the City Council is to adopt the Plan document and execute the Declaration of Trust. ' This Plan document and Trust are the same documents all public employers adopt ` and execute when using ICMA Retirement Corporation as an investment vehicle for their employe^s deferred income plans. FUNDING: As with Plan co -administrator, Great Western Bank, there is no cost to the City. The direct cost of administering the program is borne by the participants. Respectfully submitted, Jerry L. Glenn Assistant City Manager JLG/vc Attachment '� :,?PROVED ' ' LJ* THOMAS A- PETERSON ecyctea paoer City Manager JGDEFCMP.3/TA t.0!V CC -1 Deferred Compensation Plan Document (Appendix A) 1,L41 ICRIA R E FI RENIENT COR POR A 1'ION DEFERRED COMPENSATION PLAN DOCUMENT ARTICLE 1. INTRODUCTION The Employer hereby establishes the Employer s Deferred 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 prcvide retirement income and other deferred benefits to the Employees of the Employer in accordance with the provisions of Section 457 of the Internal Revenue Code of 1986. as amended (the -Code"). Thi, Plan shall be an agreement solely between the Employer and participating Employees. ARTICLE It. DEFINITIONS Sretlon 2.01 Account: The bookkeeping accr:unt maintained for each Participant reflecting the cu- mulative amount of 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 tees 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, it the Designated Beneficiary predeceases the Participant, or if the designated Beneficiary does not survive the Participant for a period of fifteen (15) days. then the estate of the Participant shall be the Benefit ary. Section 2.04 Deferred Compensation: The <.mount of Normal Compenswion otherwise payable to Ute Participant which the Participant and the Employer mutually agree to Jefer hereunder, any amount credited to a Panic.pant's Accrunt by reason of a transfer under section 6 03. or any other amount which the Employer agrees tocred l to a Participant's Account. Section 2.05 Emplo;,ee: Any rnd!wdual who provides services for the Empieyer, whether, s an ernplovee of the Ernployer or is in independent contractor, 08189 and who has been designated by the Employer as eligible to participate in the Plan. Section 2.06 Includible Compensation: The amount of an Employee's compensation from the Empioyer for a taxable year that is attributable to services per- formed for the Employer and that is includible in the Employee's gross income for the taxable year for Federal income tax purposes: such term does not include any amount excludable from gross income under this Plan or any other plan described in Section 457(b) of the Code or any other amount excludable from gross income for federal income tax purposes. Includible Compensation shall be deter- mined without regard to any community property laws Section 2-07 Joinder Agreement: An agreement en- tered into between an Employee and the Employer, including any amendments or modifications thereof. Such agreement shall fix the amount of Deterred Compensation, specify a preference among the investment alternatives designated by the Employer, designate the Employee's Beneficiary or Beneficia- ries, and incorporate the terms. conditions, and provisions of the Plan by reference. Section 2.08 Normal Compensation: The amount of compensation which would be payable to a Partirt- pant by the Employer for a taxable year if no Joinder Agreement were in effect to defer compensation under this Plan. Section 2.09 Normal Retirement Age: Age 70-112, un- less The Participant f as elected an alternate Normal Retirement Age by written instrument delivered to the Administrator prior to Separation from Service A Participant's Normal Retirement Age determines the period during which a Participant may utilize the catch-uplimitation of Section 5.02 hereunder. Once a Participant has to any extent utilized the catch-up limitation of Section 5.02. his/her Normal Retire- ment age may not be changed. A Participant's alternate Normal Retirement Age may not be earlier than the earliest date thal the Participant will become eligible to retire and receive unreduced retirement benefits underthe Employer's basic retirement plan covering the Participant and may not be tater than the dale the Participant will attain age 70.112. If a Participant continues emoloy- ment after attaining age 70-1/2. not havinq prey• ously elected an alternate Normal Retirement Age, the Participant's allernate Normal Retirement Age shall notbe later than the mandatory relire -gent age, if any, estahlished by the Employer. or the age at which flue Participant aclually separates from ser - vire if the Employer has no mandatory retirement aqe. If the Participant will riot become r6g,ble to receive benefits under a basic relirement plan maintained by the Employer. the Particpant's alter- nate Normal Retirement Aqe may not be earlier thar, age 55 and may not be later than age 70-1/2. Section 2.10 Participant: Ani Employeewhr>hasiorned the Plan pursuant to the requirements of P.rurle IV. Section 2.11 Pian 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 ct age 65. Section 2.13 Separation from Service: Severance of the Participant's employment with the Employer which constitutes a "separation f-om service" within the meaning of Section 402(e)(4)(A)(iii) of the Code. In general, a Participant shah 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 Ill. 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 earned. Section 4.02 Amendment of Joinder Agreement: A Participant may amend an executed Joinder Agreement to change the amount of compensation not yet earned which is to be deferred (including the reduction of such fuiure 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 shat 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 elective immediately. ARTICLE V. LIMITATIONS ON DEFERRALS Section 5.01 Normal Limitation: Except as provided in section 5 02, the maximum arnount of Deferred Compensation for any Participant for any taxable year shall not exceed the lesser of $7,500.00 or 33- 1/3 percent of the Participant's Includible Compen- sation for the taxable year This limitation will 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 !tie last three (3) taxable years of a Participant ending be- fore his attainment of Normal Retirement Age, +he maximum amount of Deferred Compensation shall be the lesser of: (1) 515.000 or (2) the sum of (i) the Normal Limitation for the taxable year, and (ii) the Normal Limitation for each prior taxable year of the . 'icipant commencing after 1978 less the amount OT 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 pian under section 457 of the Code shall not exceed $7,500.00 (or such greater amount allowed under Section 5.02 of the Plan), less any amount excluded from gross income under section 403(b). 402ta)(8), or 402 (h)(1)(B) 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)(t8) of the Code. ARTICLE VI. INVESTMENTS AND ACCOUNT VALUES Section 6.01 Investment of Deferred Compensation: All 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 Participants or as collateral 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 oiher properly 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 to the investment preference �.pecified in the Participant's .binder Agreement. but nothing herein shall be construed to require the EfTtployer to make any particular investment of a Participant's Deferred Compensation. Eac't 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 Iransfer may be accepted from an eligible deterred compensation plan maintained by another employer and credited to a Participant's Account under the Plan it (i) the Participant has separated frorn service with that emp!oyer 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 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 during 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 by another employer, and charged to a Participant's Account under this Plan, it (i) the Par- ticipant has separated from service with the Em- ployer and become an employee of the other em- ployer, (ii) the other employer's plan provides that such transfer will be accepted, and (iii) the Partici- pant and the employers have signed such agree- ments as are necessary to assure that the Employer's liability to pay benefits to the Participant has teen discharged and assumed by the other employer. The Employer may require such documentation from the other plan as it deems necessary to 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 Articie 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 dale other than that described in the preceding sentence which is at least 60 days after the dare such election is delivered in writing to the Employer and fonnarded 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- V2, 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 Parbcipanl Account distributed in ar'cOrdance with nne of the following papnent 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) Approximalely 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 distributions required under Section 401(a)(9) of the Code over the life expectancy of the Participant or over the life expectancies of the Participant and his/her Beneficiary. (e) Payments equal to paymentsmade by the issuer of a retirement aanuity 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 nonincreasing 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 Coda, including that payments commencing before the death of the Participant shall satisfy the incidental death benefits requirement under Section 457(d)(2)(B)(i)(1). Unless otherwise elected by the Participant, all determinations under Section 401(a)j9) 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 Parixipant'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 tinder this section must provide for payments at a rate that is at least as rapid as under the payment option that was applicable to the Participant. In no event shall the, Employer nr Administrator be' able 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 Bene!iciary does not continue to live for the remaining period of payments under the payment option, then the commuted value of any refraining payments under the payment option shall be paid 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, ur less the Beneficiary irrevocably elects a different fixe i or determinable benefit com- mencement date wit, .in 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 $3,500. A Beneficiary shall be treated as it he/she were a Participant for 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 shalt be deemed to invnlve only circumstances of severe financial hardship to the Participant resulting from a sudden unexpected illness, accident, or disability of the Participan; or of a dependent (as defined in Section 152(x) of the Code) of the Participant, loss of the Participant's property due to casualty, u, other s:mr lar and extraordinary unforeseeable circumstances arising as a result of events beyond the control of the Participant. Th6 need to send a Participant's child to college or 10 purchase a new home shali not be considered unforeseeable emergencies The derer- mrnafion 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 Vlll. NON -ASSIGNABILITY Section 8.01 In General: Except as provided in Section 8.02, no Participant or Beneficiary shalt have any right to commute, sell, assign, pledge, transfer or otherwise convey or encumber the right 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 ?arms 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 is not permitted tinder 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 tact 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 for 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 shall be deemed to have released the Employer and the Administrator from any claim with respect to such amounts. in any case in which O 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 mad from the Employer or Administrator to the Participant's fast known mailing address, and (iii) the Partici- pant fails to obtain an order of the court in the proceeding relieving the Employer or Administra- tor from the obligation 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 judgment, decree. or order described in paragraph (a) or any legal order relating to the garnishment of a Participant's benefits, unless the full expense of such legal action is borne by the Participant. In the event that the Participant's action (or inaction) nonetheless causes the Employer or Administrator to incur such expense, the amount of the expense may be charged against the Participant's Account and thereby reduce the Employers obligation to pay benefits to the Partici- pant- In the course of any proceeding relating to divorce. separation, or child support, the Employer and Administi _ _..:haft be authorized to disclose 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 orsystem. 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 right lu be retained in the employ of the Employer. Nor shall anything herein be construed to modify the terms of any 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 prior to the effective date of the amend- ment. The consent of the Administrator shall 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 writing 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 writing 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 obligation to continue acting as Administrator hereunder. If this Plan document constitutes an amendment and restatement of the 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 eligible deferred 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 the state where the Employer is located and is established with the intent that it meet the requirements of an "eligible deferred 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 XII. Any notice to a party of this plan document shall be given at the last address provided in writing from one party to another party. Any notice such mailed shall be determined to have been received by such party. Declaration of Trust of the ICMA Retirement Trust (Appendix m*% ,,Lq1 ICM A R M -I REM ENT COR POR Al ION DECLARATION OF TRUST OF ICMA RETIREMENT TRUST ARTICLE 1. 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, the 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 deferred 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 administering 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 return on investments made pursuant to such contract. (f) ICMA. The international City Management Association. (g) tCMA/RC 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 inveElment of the Trust Property. (1) Portfolios. The Portfolios of investment 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 lne provision of Section 3.1(a) hereof, are full- time employees of Public Employers. (k) Public Employer Trustees. Public Emptoye•s who serve as trustees of the Qualified Plans. (1) 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 Emplcyer for the purpose of providing retirement income 10 its employees which satisfies the qualification requirements of Section 4Ci nt the Internal Revenue Code, as amended. (n) RC. The infc-mationalCity Managernent Association Retirement Corporation. (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 with Deferred Compensation Plans and on behall 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 ICMAIRC Trustees elected by the Public Employers to serve as members of the Board of Trustees of the Retirement Trust. ARTICLE It. CREATION AND PURPOSE OF THE TRUST; OWNERSHIP OF TRUST PROPERTY Section 2.1 Creation: The Retirement Trust is created and established by rhe execution of this Declaration of Trust by the Trustees and the Public Employers. Section 2.2 Purpose: The purpose of the Re' irement Trust is to provide for the commingled investment of funds held by the Public Employers in connection with their Deferred Compensation and Quairfled 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 ?roperty allocable to the Deferred Com- pensation Plans. The portion of the Trust Property allocable to the Qualified Plans shall be held for the Public Employer Trustees for the exclusive benefit of the Employees. ARTICLE Ill. TRUSTEES Section 3.1 Number and Qualification of Trustees: (a)The Board of Trustees shall consist of nine Trustees. Five of the Trustees shall be full-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 rnemhers of the Board of Directors of RC (the ICMAIRC 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 nee term in any ten-year period. Section 3.2 Election and Term: (a) Exrept for the Trustees enr o(nled to fill vacancies pursuant to Section 3.5 hereof. the Tru :tees shall be elected by a vote of a maiontyof the Public Employers in accordancewiih the procedures set torah in the By -Laws. (b) At the first election of Trustees. three Trustees shall he elected for a term of three years, three Trustees shall be elected for a terra of two years and three Trustees shall be elected for a term of one year. At each subsequent Pie -.ficin. Three Trustees :hill be elected for a term of three years and until his or successor is elected and qualified. Section 3.3 Nomirations: The Trustees who are full-time employees 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 Trust(es in accordance with the procedures set forth in the E y -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 delivery, 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 Empioyee Trustee shall resign his or her position as Trustee within sixty days of the date on which he or she ceases to be a full-time employee of a Public Employer. Sectior. 3.5 Vacancies: The term of office of a Trustee shall I erminate and a vacancy shall 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 tha powers granted to the Trustees and shall disch— ge all the duties imposed upon the Trustees by this Declara- lion. 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 IN.; Declaration, each Public Employer agrees that the Public Employee Trustees elected by 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 sha!I 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. for the establishment and operation of me Portfolios, selection of the Guaranteed Investment Contracts in which the Trust Property may he invested, selection of the other investments for the Trust Property and the payment of reason.ible fees to the Investment Adviser and to any --ib-investment adviser retained by the lnveslmenl Adviser: (c) review annually the performance of the Investment Advise- and approve annualiy the contract with such Investment Adviser. (d) invest and reinvest the Trust Property in the Portfolios, the Guaranteed Interest Contracts and in any ether 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 of a nominee. and to hold anyinvestrnents in bearer from, but the books and records of the Trustees shall at all 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: (i) vote upon any stock. bonds. or other securities: give general or special proxwsor powers of attorney with or without power of substitution:exercise any conversion privileges. subscription rights, or other options, and make anypayments incidental thereto: oppose, or consent to, or otherwisp participalp in, corporate reorganizations or to other changes affecting corporate securities, and delegate discretionary powers and pay any assessments or charges in connection therewith: and generally exercise any of the powers of an owner with respect to stocks, bonds, securities or other property held as part of the Trust Property: (j) enter into contracts or arrangements for gocds or services required in connection with the operation of the Retirement Trust, including, but not limited le. contracts with cu..todians and contracts for the provision of administrative services: (k) borrow or raise money for the purposes of 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 shall not exceed 30% of the value of the Trust Property. No person lending money to the Trustees shall be bound to see the application of the money lent or to inquire into its validity, expediency or propriety or any such borrowing; (1) incur reasonable expenses as required for the operation of the Retirement Trust and deduct such expenses from of It e 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 properly allocable: (n) pay out of the Trus! 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 property levied. or assessed under existing or future laws upon. or in respect of, the Trust Property and allocate any such taxes to the appropriate accounts: (o) adopt, amend and repeal the bylaws, provided that such bylaws are at all times consistent with the terms of this Declaration of Trust: (p) employ persons to make available interests in the Retirement Trust to employers eligible to maintain a Deferred Compensation Plan under Section 457 or a Qualified Plan under Section 401 of the Internal Revenue Code, as amended: (q) issue the Annual Report of the Retir'2ment 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: (s) contract for, and delegate any powers granted hereunder to, such officers, agents, employees. auditors and attorneys as the Trusties 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 w•-3kuld violate their fiduciary dotes: (t) provide for the indemnification of the Officers and Trustees of the Retirement Trust and purchase fiduciary insurance: (u) maintain books and records, inctuding separate accounts for each Public Employer, Public- Employer Trustee or Employer Trust and suer. add,lional 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 rights and privileges. although not specifically mention herein, as the Trustees may deem necessary or appropriate to administer the Trust Properly and to carry out the purposes of the Retirement Trust. Section 4.2 Distribution of Trust Property: Distributions of the Trust property shall be made to, or on behalf of, the Public Employer cr Public Employer Trustee. rn accor- dance with the terms of Deferred Compens-ition Plans, Qualified Plans or Employer Trusts. The Trust- ees of the Retirement Trust shall be fully protected in making payments in accordance with the di:ections of the Public Employers. Public Employer Trustees or other Trustee of the Employer Trustswithout ascertain- ing whether such payments are in compliance with the provision of the Deferred Compensation or Qualified Plans, or the agreements creating the EmployerTrusts. Section 4.3 Executior. 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 eifect 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 pow,�rs hereinhefore granted to the rustees. the Trustees shall perform all acts within their authority for the exclusive purpose of providing benefits for the Public Employers in connection with Deferred Compensation Plans and Public Employer Tiusteespursuanl to Otmli- tied Plans, and shall perform su,:h acts with the care. skill, prudence and diligence in the circumstances Ihen prevailing that a prudent person acting in a like capacity and familiar with such matters wrouN use in the conduct of an enterprise of a iiia character and with Itke aims Section 5.2 Liability: The Trustees shad not be:;ahr^'nr any mistake of judgment or other action taken in good `aith, and for any action taken or omitted in reliance in t ood faith 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 b) any of its officers, employees or agents or by the Investment Adviser or any sub -investment adviser, accountants, appratsers 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 Property by reason of any investment made in good faith 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 V1. 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 ,vhich shall be certified by independent public accountants chosen by the Trustees. ARTICLE VII. DURATION OR AMENOMENT OF RETIREMENT TRUST Section 7.1 Withdrawal: A Public Employer or Public Em- ployer Trustee may, at any time. withdraw from this Retirement Trust by delivering 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 Public Employer is derived from compensation de- ferred by employees of s --h Public Employer pursuant to its Deferred Compensation Plan or from contribu- tions to the accounts of Employees pursuant to a Qualified Plan, and shall designate the financial institu- tion to which such property shall be transferred by the Trustees of the Retirement Trust or by the Trustee of the Employer Trust Section 7.2 Duration: The Retirement Trust shall continue until terminaled by the vote of a majority of the Public Employers, each casting one vote. Upon termination. all of the Trust Property shall be paid out to the Public Employers. Public Employer Trustees or the Trustees of the Employer Trusts, as appropriate. Section 7.3 Amendment: The Retirement Trust may be amended by the vote of 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 Public Employers it: (i) a majority of the Trustees so direct, or, (ii) a petition requesting a vote signed by not less that 25 percent of the Public Employers, is submitted to the Trustees. ARTICLE VIII. MISCELLANEOUS Section 8.1 Governing Law: Except as otherwise required by stat^ or local law, this Declaration of Trus! and the Retirement Trust heieby created sha!I be construed and regulated by the laws of the District of Columbia. Section 8.2 Counterparts: This Declaration may be ex- c-cuted by the Public Employers and Trustees in two or more counter parts. each of which shall be deemed an anginal but all of whwh together shall constitute one and the same ins!rttmeni RESOLUTION NO. 93-75 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE INTERNATIONAL CITY VJUTAGEMENT ASSOCIATION (ICMA) RETIREMENT CORPORATION DEFERRED COMPENSATION PLAN, AND AUTHORIZING THE EXECUTION OF THE DECLARATION OF TRUST OF THE ICM RETIREMENT TRUST NAME OF EMPLOYER: CITY OF LOOT, a municipal corporation of the State of California. TITLE OF PROGRAM COORDINATOR: Assistant City er WHEREAS. the City of Lodi, a munir7ipal corporation of the State of Cali`ornia (hereinafter "Employer") has employees rendering valuable services; and WHEREAS, the establishment of a deferred compensa n plan for such employeea -arves the interests of the Emp'.ayer by enabling it to provile reasonable retirement security f,r its eaplayees, by providing increased flexi.bil-.f in its personnel management system, and by assisting in the attraction and ret,.ntion of competent personnel; and WHEREAS, the Emplcy, : hoe det�t�mined that the establishment of a deferred compeuaation pia- to Ise administered b-.1 the ICMA Retirement Corporation serves the above objectives; and WHEREAS, the Employer desires that its deferred compensation plan be administered by the ICMA Retirement Corporation, and that the funds held under such plan be invested in the ICMA Retirement Trust, a trust established by public employers for the collective investment of funds held under their retirement and deferred compensation plans; NOW, THEREFORE, BE IT RESOLVED that the Employer hereby adopts or has previously adopted the deferred compensation plan (the "Plan") in the form of the ICMA Retirement Corporation Deferred Compensation Flan, referred to as Appendix A; and BE IT FURTHER RESOLVED that the Employer hereby executes the Declaration of Trust of. the ICMA Retirement Trust, attached hereto as Appendix B, intending this execution to be operative with respect to any retirement or deferred compensation plan subsequently established by the Employer, if the assets of the plan are tc; be invested in the ICMA Retirement Trust; and BE IT FURTHER RESOLVED that the Assistant City Manager shall be the coordinator for this program; shall receive necessary reports, notices etc. from the ICMA Retirement Corporation or the ICMA Retirement Trust; shall cast, on behalf of the Employer, any required votes under the ICM% Retirement :rust; Administrative duties to carry out the plan may be assigned to the appropriate departments, and is authorized to execute all necessary agreements with ICMA Retirement Corporation incidental to the administration of the Plan. 93-75 RES 937_;TXTA.02J Resolution 93-75 Page Two Dated: June 16, 1993 Z hereby certify that Resolution No. 93-75 was passed and adopted by the Lodi City Council in a regular meeting held June 16, 1993 by the following vote: Ayes. Council Members - Davenport, Mann, Sieglock, Snider and Pennino (Mayor) Noes: Council Members - None Absent: Council Members - None nifer M. Perrin City Clerk 93-75 RES9375/7XTA_020