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HomeMy WebLinkAboutReso - CC - 056-1979RESOLUTION NO. r6- 79 AMENDING THE DEFERRED COMPENSATION PLAN OF THE CITY OF BURLINGAME RESOLVED, by the Council of the City of Burlingame, California, that: WHEREAS, the City adopted a Deferred Compensation Plan for its employees on May 17, 1976, by the adoption of Resolution No. 46-76 which established a plan affording those employees a legal opportunity to defer receipt of a portion of their compensation to save and defer both Federal and State income taxes; and WHEREAS, the Revenue Act of 1978 has prescribed additional requirements, conditions and limitations for Deferred Compensation Plans in States and local subdivisions of the States; and WHEREAS, it is necessary to bring the Burlingame Deferred Compensation Plan into conformance with the Revenue Act of 1978 to insure full qualification of the Plan; NOW, THEREFORE, IT IS HEREBY FOUND, DETERMINED AND ORDERED, that: 1. The public interest, convenience and necessity require approval of the City of Burlingame Deferred Compensation Plan, as amended, and as set forth in the attachment hereto, marked Exhibit A, and incorporated herein by reference. 2. The said Plan is hereby approved and adopted for the City of Burlingame. It shall be made available to those employees who qualify for participation, as defined in Section 2.2 of the Plan. 3. Prior authority granted by this Council in Resolution No. 46-76, concerning Master Deferred Compensation Agreement shall continue in full force and effect, as amended. I, EVELYN H. HILL, City Clerk of the City of Burlingame, do hereby certify that the foregoing Resolution was introduced at a regular meeting of the City Council held on the 6th day of August, 1979, and was adopted thereafter by the following vote: AYES: COUNCIL14EN: Amstrup-Barton-Mangini NOES: COUNCILMEN: None ABSENT: COUNCILMEN: Crosby -Martin 7✓��� City/Clerk 7/25/79 11 - 2 - CITY OF BURL"—'GAME DEFERRED COMPENSATIr" PLAN SECTION 1. INTRODUCTION: This document sets out the City of Burlingame Deferred Compensation Plan ("Plan") which has been established, adopted and amended by the City of Burlingame to attract and to hold personnel by ,allowing them to defer a portion of their compensation and to providje for benefits upon death, disability, retirement, or other termination of employment with the City of Burlingame. SECTION 2. DEFINITIONS: 2.1 "Employer" shall mean the City of Burlingame: 2.2 "Employee" shall mean any employee, independently contracted person, or elected official. 2.3 "Participant" shall mean an employee who has elected to participate in the Plan. 2.4 "Participation Agreement" shall mean an agreement executed and filed by an employee with the employer pursuant to Section 3 in which the employee elects to become a participant in the Plan. 2.5 "Compensation" shall mean the total of all amounts which would be paid by the employer to or for the benefit of an employee if he were not a participant in the Plan for actual services for the period that he is a participant. 2.6 "Disability" shall mean the inability of a participant to engage in his usual occupation by reason of a medically determinable physical or mental impairment as determined by the employer on the basis of advice from a physician or physicians. 2.7 "Temporary Disability" shall mean the inability of a participant to engage in his usual occupation by reason of a medically determinable physical or mental impairment which can be expected to continue for more than 3 months and which does not constitute total disability; temporary disability shall be determined by the employer on the basis of advice from a physician or physicians. 2.8 "Beneficiary" means any person, trust, corporation or firm, or any combination of the foregoing, designated by a participant to receive benefits under the Plan. Any such designation shall be by written instrument filed with the employer and shall be revocable unless otherwise provided in such instrument. If a participant does not file a beneficiary designation with the employer, his beneficiary shall be the estate of such participant. 2.9 "Normal Retii^_vent Age" For the purposL^o£ Section 3.1 of the Plan, "Retirement" means retirement from service with the Employer which becomes effective on the first day of the calendar month after Participant meets the age and service requirements for retirement (including "early" or "late" retirement) specified in the applicable retirement policies of the Employer. SECTION 3. PARTICIPATION IN THE PLAN: 3.1 Each employee may elect to become a participant of the Plan and defer payment of part of his compensation not otherwise required to be deferred by executing a written Participation Agreement and'filing it in the manner set forth in Section 3.4. The elective Participation Agreement shall specify the amount of compensation to be deferred. Such amount shall in no event be less than five dollars per pay period. The amount deferred for any taxable'year may not exceed the lesser of: 1. $7,500, or 2. 33-1/3% of the Participant's includable compensation provided, however, that the Plan, provides that for one or more of the Participant's last three years prior to attaining the normal retirement age under the Plan, the maximum amount deferred may be the lesser of: a. $15,000, or b. the sum of the ceiling established under the Plan plus so much of the allowable amount which had not been deferred in prior years. 3.2 The Participation Agreement shall continue from year to year and remain in full force and effect unless terminated as provided in Section 3.3 or.amended as provided in Section 3.5. 3.3 A participant may terminate his elective participation in the Plan and thereby terminate further deferral of his ..compensation by filing with the employer a written notice of termination at least 10 days prior to the effective date of termination. Once terminated, a former participant cannot recommence elective partici- pation except as prescribed in section 3.4. 3.4 A Participant may begin or change the amount of compensation to be deferred in a subsequent calendar month by executing and filing notice with the Employer at least 10 days prior to the beginning of such month, provided, however, that such.change may be made not more than two times in a calendar year. 2 - SECTION 4. ADMINISTRATION OF THE PLAN: 4.1 The Plan shall be administered by the employer, as represented by the.City Manager or his designee, who shall have the authority to enforce the Plan and who shall be responsible for the operation of the Plan in accordance with its terms. The employer shall determine the time, manner, and the amount of payments of benefits pursuant to Section 5 and shall determine all questions arising out of the administration, interpretation, and application of the Plan; provided that employer, unless there is good reason to the contrary, will seek to accommodate participant's wishes in rendering such determinations. At least once each year the employer shall hold an information- al meeting of all participants concerning the Plan. 4.2 The employer shall establish a deferred compensation fund to which all deferred compensation will be credited at such times as the compensation would have been payable to individual employees if not a participant of the Plan.. .Separate book accounts shall be established for each participant and shall show ail amounts of deferred compensation, investments made, and earnings and gains on investments. Interest earnings will be credited to the participant's book account when declared by the institution. ..Each book account shall be valued at least annually. 4.3 The employer shall deposit amounts of deferred compensation with a local savings and loan association or banking institution, whichever, in the employer's judgment, will best achieve the employee's investment objectives. By execution of a. Participation Agreement employee agrees that the indication of his investment objective is not binding on employer and that employer may invest in investment vehicles in contradiction of the individual employee's objective. 4.4 The employer may, but is not required to, invest deferred compensation at least monthly in the investment vehicles provided for in this Plan. All amounts of deferred -compensation, whether or not invested by the employer, shall at all times be and remain an asset of the employer available for use by the City in satisfaction of its lawful debts or obligations until actually transferred or paid over under the terms of the Plan. 4.5 Neither this Plan nor any Participation Agreement nor any book account shall be deemed to create a trust or custodial account on behalf of or for the benefit of any participant of the Plan or his beneficiaries. No participant of the Plan or his beneficiaries shall have, by reason of the Plan, Participation Agreement, or book account,any secured or preferred interest in or to any assets of the employer. The existence .of the Plan, Participation Agreement, or book account shall not entitle a creditor or a participant to a claim or lien against any of the - 3 - deferred comp"isation or earnings resulued from the deferred compensation or to any of employer's other assets. The employer shall have only a contractual obligation to pay the benefits due the participant under the Plan. Each participant agrees that he will look solely. to the employer's general assets for payments of amounts to which he is entitled under the Plan. SECTION 5. DISTRIBUTION OF BENEFITS: 5.1 In the event of (a) death of a participant, either before or after termination of employment, (b) retirement of a participant, (c) or termination of a participant's employment for other reasons than specified in this section, the full benefits credited to his book account in addition to earnings and deferred compensation which had not been credited at the time of death or termination due to the accounting methods used in the administration of the Plan, less any Federal or State Withholding Taxes -required by law, shall be distributed to participant or his beneficiary, as appropriate in the following manner: a. lump sum within 6 months b. in monthly, quarterly, or annual payments for a designated period of not less than one.year and not more than ten years. 5.2. In the event of the disability of a participant while he is an employee, the method of distribution shall be as described in Section 5.1. 5.3 In the event of the temporary disability of a.participant while he is an employee, the employer may authorize payment of benefits of participant's book account as it shall determine. 5.4 In the event of serious financial problems, which (1) are real emergencies, (2) are not ordinary budgeting diffi- culties, and (3) are not within the control of the employee, a participant may apply to the employer for withdrawal of his book account balance or a portion of.it. All such withdrawals shall be fully subject to any applicable laws, rules or regulations pertaining to deferred compensation plans. A withdrawal of an amount limited to that necessary to meet the emergency may be allowed where the individual employee would suffer great hardship if such withdrawal were not permitted. 5.5 In the event a participant terminates service with employer in order to accept employment or a position of service with another agency, then upon the written concurrence of the other agency, the entire book account of participant plus all other deferred compensation and earnings owing to participant shall be transferred to be held by that agency under the provisions of a deferred compensation 4 - agreement of _ at agency. If no transf occurs, then distribution shall be as provided in Section 5.1. 5.6 Notwithstanding any other provisions of this plan, a ter- minating employee may, upon approval of the employer for good cause, elect to leave the funds, assets, and accumula- tions in his participation account until such time as he would otherwise receive the benefits in accordance with his stated preference as provided in Section 5.1 of this Plan. 5.7 The distribution of benefits under this Plan shall be within the sole discretion,. after consultation with the employee, of the employer. -. SECTION 6. FACILITY OF PAYMENT: If any participant terminates his employment with an unpaid debt oweing to the employer and neglects or refuses to liquidate the debt when due and upon demand, the employer shall be entitled to collect the amount due from benefits owed to participant under the Plan. SECTION 7. AMENDMENT AND TERMINATION: This plan may be amended or terminated by employer at any time; however, no amendment or termination of the Plan shall reduce or impair the rights of any participant or beneficiary which may have already accrued.. Upon termination of the Plan, employer shall distribute the amount in participant's book account in addition to those amounts owing to participant under the Plan which as of the termination date had not been credited to participant according to the distribution methods in Section 5..1; the choice of distribution shall be made by the employer. SECTION B. MISCELLANEOUS: 8.1 This Plan shall not be construed as giving any participant any right to continue his employment with the employer. 8.2 This Plan has been adopted in .the State of California and shall be construed and governed under and by the laws of said State. 8.3 The contractual obligation of the employer to the participant established by the Plan shall not be assignable in whole or part, voluntarily or by operation of law, and no right or interest of a participant pursuant to the Plan shall be subject to any obligation or liability of such participant or his beneficiary, except as provided'in the next paragraph hereinbelow. 8.4 No participant or other person shall have any legal or equitable right against the employer except as provided in the Plan, and in no event shall the terms of employment of any employee or participant be modified or in any way affected thereby. 8.5 Captions used in the Plan are for the purpose of convenience only, and shall not limit, restrict or enlarge the provisions of the Plan. - 5 - GIIY U 13URLINGAML DEFERRED COMPENSATION PLAN P'ATICIPATION AGREEMENT — 19 Beginning with the first pay period commencing in the month of , 1 wish to contribute to the Deferred Compensation Plan of the City of Burlingame to the extent of $ per pay period (not less than $5 per pay period). I have read the City's Deferred Compensation Plan which is incorporated by reference herein and understand its provisions and limitations. In particular, I understand that the disbursement and investment of deferred compensation, including lump -sum or periodic payments, emergency withdrawals, transfer of funds and the manner of investment, is within the City's discretion. In the event of my death while still a member of the Plan, I hereby designate the following person(s) to receive any benefits to which I am entitled in the shares set forth below. If any beneficiary does not survive me, his or her share shall go to the survivor or survivors in equal shares. If no beneficiary is designated, the money shall go to my estate. .Share(%) First Name Middle Name Last Name Relationship No. & Street/City,State & Zip In the event none_of the beneficiaries named above survive me, then I hereby designate the following person or persons to receive my Plan benefits in the shares set forth below. If any beneficiary does not survive me, his or her share shall go to the survivor or survivors in equal shares. Share (%) First Name Middle Name Last Name Relationship No. & Street/City,State & Zip I hereby reserve. the right to change or revoke this beneficiary designation without notice to any beneficiary. Dated , 19 Consent of Spouse - (Deferred Compensation is consent.) I hereby agree to the designation above. Dated , 19 Employee community property, requiring spousal of beneficiary or beneficiaries shown Spouse of Employee