HomeMy WebLinkAboutCC Res 4278 1993-11-22
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RESOLUTION NUMBERh
A RESOLUTION OF THE CITY OF SEAL BEACH, CALIFORNIA
AUTHORIZING PARTICIPATION IN THE PUBLIC AGENCY
RETIREMENT SYSTEM (PARS) ALTERNATIVE PLAN PROVIDING
A QUALIFYING RETIREMENT SYSTEM FOR ELIGIBLE
EMPLOYEES
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THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE:
WHEREAS, it is determined to be in the best interest of the City
of Seal Beach (CITY) and its employees to provide a
Qualifying Retirement System to all employees not
currently eligible for such a Qualifying Retirement
System, thereby meeting the requirements of Section
11332 of the Omnibus Budget Reconciliation Act and
Section 3121(b) (7) (F) of the Internal Revenue Code; and
WHEREAS, the Public Agency Retirement System (PARS) Alternate
Plan, a governmental plan, has made such a System
available to the CITY and its eligible employees,
and qualifies under California Government Code
Section 20,000, Education Code Section 22,000,
Section 11332 of the 1990 Omnibus Budget Reconciliation
Act (OBRA 90), and meets the meaning of the term
"retirement system" as given by Section 218(b) (4) of the
Federal Social Security Act.
NOW, THEREFORE, BE IT RESOLVED that: (1) The City Council of the
City of Seal Beach does hereby adopt PARS effective December 1,
1993, the Effective Date for the benefit of employees on that date
and hired thereafter; and (2) The City Manager is hereby appointed
CITY Plan Administrator; and, (3) The CITY Plan Administrator is
here~y authorized to execute the attached PARS Adoption Agreement
on behalf of the CITY and to take whatever additional actions that
are necessary to maintain the participation of the CITY in PARS and
to maintain PARS compliance with Section 11332 of the Act and
relevant regulations issued or as may be issued.
PASSED, APPROVED AND ADOPTED by the Council of the City of Seal
Beach, California at a meetiing therefore held on the 22nd Day of
November, 1993 by the fo~lowing vo :
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AYES: counci1member~_
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NOES: Councilmembers:
ABSENT:
Councilmembers:
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Mayo
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STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF SEAL BEACH
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I, Joanne M. Yeo, City Clerk of the City of Seal Beach,
California, do hereby certify that the fO~~ Resolution
is an original copy of Resolution Number on file in
the office of the City Clerk, passe , appro ed and adopted
by the City Council of ~nCity of S 1 Beac at a m~~ng
there held on the ~ay of , 19;.
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Clu.M..L I
Clerk
Resolution Number 1;11B
P A R S
Public Agency Retirement System
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ADOPTION AGREEMENT
City of Seal Beach
Version I
October 2S. 1993
Copyright c 1992 PHASE II SYSTEMS All ngh.. r.....rved ReproducllO" III pari or whole.. prohibited
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AOOYTION AGREEMENT TO
THE PUBLIC AGENCY RETIREMENT SYSTEM (PARS)
AND TRUST AGREEMENT
EMPLOYER
City of Seal Beach
FEDERAL LD, #
95-6000794
ADMINISTRATOR
Jerrv Bankston
(Name)
City ManaQer
(Tille)
ADDRESS
Adm;n;~trat;on
(Department)
211 Fighth Str~~t
(Number and Street)
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c;..~ 1 R..~~h
(Clly)
r.A Q0740
(Stale and Zip Code)
NAME OF PLAN
'PUBLIC AGENCY RETIREMENT SYSTEM (PARS)--
City of Seal Beach
(Agenc)' Name)
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Resolution Nu~er ~O?~)f
INTRODUCTION
This Adoption Agreement, the provisions of the Public Agency Retirement System (PARS), and the
provisions of the PARS Trust of which this Agreement is a part, are hereby adopted by the Employer
executing this Agreement for the benefit of Ehgible Emp]oyees and their Beneficiaries,
This Adoption Agreement is part of the adoption of a new Plan, as provided in Section 2,5 of the PARS
Trust.
Item I: EFFECTIVE DATE
EFFECTIVE DATE shall mean
np~pmhpr '. ,QQ3
Item 2: ELIGIBLE EMPLOYEE
A. ELIGIBLE EMPLOYEE shall mean on]y those Employees who, at any time during which the
Employer maintains this Plan, are not accruing a benefit under Social Security or another Retirement
System provided and maintained by the Emplo}'er which meets the minimum requirement. of IRS
Regulations of IRC Section 3121 (b)(7)(f),
B. ELIGIBLE EMPLOYEE shalllncIude all active employees until termmation of employment and
inactive employees until their interest in the Plan is distributed,
C. ELlGffiLE EMPLOYEE shall exclude all employees exempted under IRC Section 312] (b)(7)(f).
D. ELIGIBLE EMPLOYEE shall mclude the following:
Item 3: ELlGffilLITY REQUIREMENTS
A. SERVICE REQUIREMENT: An Employee who ql,l8lifies a. an ELIGIBLE EMPLOYEE under
Item 2 above shall be eligible to participate immediately,
B. EMPLOYMENT REQUIREMENT: An Emp]oyee who terminates employment during the Plan
Year shall still be eligible to participate during such Plan Year,
Item 4: COMPENSATION
A. COMPENSATION shall mean all compensation for the Plan Year paid or pa}'able in cash b)' the
Emp]oyer for personal services by the Ehglble Employee. This definitIon of COMPENSATION shall
be subject 10 the provisions of Article 1,05 of the Plan as well as the further provisions of this Item,
B, If elected in this lIem, the term COMPENSATION shall be defined as follows:
W-2 Wages [ ] YES [ ] NO
Base Salary [ ] YES [ ] NO
CALIF. PERS Compensation I] YES I] NO
CALIF. STRS Compensallon [ ] YES [ ] NO
Other [ ] YES [ ] NO (define below)
Item 5: NORMAL RETIREMENT AGE
NORMAL RETIREMENT AGE shall mean SIXty (60) years of age,
Item 6: NORMAL RETIREMENT DATE
NORMAL RETIREMENT DATE shall mean the first of the month coincident with or next following
the date on which the Participant attains NORMAL RETIREMENT AGE.
Item 7: DEATH AND TOTAL DISABILITY PROVISION
A Participanl's Vesting and distribution rights on the date of his death or .Permanent and Total
Disability. will be the same as the Vesting and distribution rights apphcable on the date of his
attainment of Normal Retirement Age.
Item S: ALLOCATION AND AMOUNT OF CONTRIBUTIONS
A. The Employer sh811 make Employer Contributions in the amount of u." of each Participant's
Compensation. Employer Contributions shall be forwarded 10 the Trustee 10 be allocated 10 each
Participant's Employer Contribution Account.
B, Each Participant shall make Emp]oyee Contributions in the amount of U " of his Compensation.
Employee Contributions shall be forwarded 10 the Trustee 10 be allocated 10 the Participant's Employee
Contribution Account. Employee contributions will be .before tax. due 10 the employer's adoption of
IRC Section 414(b) .employer pickup. in the Plan Document.
Resolution Number 1/.;(18
C. All Plan expenses shall be paid out of Plan assets, and shall be allocated as follows:
_" to the Employer Contribution Accounts, and lilll... 'l to the Employee Contribution Accounts,
D. A Participant shall not be permitted to direct the inveslment of his Employer Contribution Account
or his Employee Contribution Account.
Item 9: INVESTMENT OF CONTRIBUTIONS
A. Pursuant to Section 4,I(a) of the Trust, the funding policy and method of this plan shall be as
follows:
Yes _ No....lL. All Contributions will be deposited in the Imperial Bank Money Market
Fund and wire-transferred each month to the Hartford's Group Immediate ParticipatIOn
Guarantee (IPG) insured mveslment contract.
Yes _ No -L. All Contributions will be deposited in the Imperial Bank Money Market
Fund guaranteed by the Federal Deposit Insurance Corporation,
Yes _ No -1L All Contributions will be deposited in the Imperial Bank Money Markel
Fund and wlre-tran,ferred each month to the Los Angeles County Pooled Jnvestmenl Fund
which is held and managed by the Los Angeles County Treasurer,
Yes -1L No _ All Contribullons Will be deposited in the Imperial Bank Money Market
Fund and wire-transferred each month to the Orange County Investment Pool which IS held and
manalled by the Oranlle County Treasurer,
B. Yes....lL- No _ Pursuant to Section 4. I (a)(2) of the Trust, the Plan Administrator hereby names
the Trustee as the F.duclar)' for all contributIOns to be deposlled m the Trubtee'& Short Term Investmenl
Fund and wire-transferred each month to the investment vehicJe(s) indicated in Section A above.
insured Investment contract.
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Item 10: VALUATION DATE
V ALUA TION DATE shall mean the date as of whicb a valuation is completed. Valuations are done at
least monthly and more frequenrly, at the discretion of the Trustee,
The Plan shall be funded as provided under Section 4. I of the PARS Plan Document.
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Item 11: METHOD OF FUNDING
Item 12: VESTING
A, Tbe Participant's Employee Contribution Account shall be lOO'l Vested at all times. The
Participant's Employer Contribution Account shall be 100% Vested at Normal Retirement Age, Total
Disability or Death, However, notwithstanding anything to the contrary in thiS Plan, the Participant
shall be Vested in bls Employer Contribution Account to such a degree and at sucb a time as to meet the
minimum requirements for a retirement system under Section 3121(b)(7)(F) of the Code,
B. Y es~o_ Years of Service with the Employer completed before the Employer maintained this
Plan sball be counted to determine the nonforfeitable percentage in sucb Employee's benefit from
Employer Contribullons.
C. Y es~o_ Years of Service completed prior to termination of employment sball not be credited
to an Employee wbo terminates employment before satisfying the eligibility requirements in Item 3 of
the Adoption Agreement,
D. For Vesting purposes. a Parllcipant will be credited with a Year of PartiCipation or Service only if
be or sbe completes at least one Hour of Service during the computation period.
E. Benefits shall be vested in accordance with the following:
Yes No_ A participant transferring to an eligible retirement plan with the same
employer shall be 100% vested.
Yes_ No_ The schedule shown below shall be used:
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Years of Service
Comnleted
Percent
Vested
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~esolution Number
llem 13: PLAN YEAR
The PLAN YEAR shall be the peflod of twelve (12) consecutive month. commencing on
.1anuary 1 and ending on December 31
Item 14: MISCELLANEOUS
This Adoption Agreement shall be used only In conjunction with the Pubhc Agency Retirement System
(PARS) and the PARS Trust.
Execuled Ibis 30th day of November , 1993, at Sea 1 Beach
Si2:~A~~*
Ci tv ManaQer
Title
. California.
Resolution Number ~D7j1~
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Public
Agency
Retirement
System
PLAN DOCUMENT
City of Seal Beach
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Version I
October 25. 1993
Copyright e 1992 PHASE" SYSTEMS, All right. reserved, Reproductio" i" port or whole is prohibited,
Resolutio~ Number ~o?~
INTRODUCTION
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The Public Agency Retirement System Trust has adopted the following Defined Contribution Plan on
behalf of affiliated government agencies for the benefit of their employees. It is intended that this Plan
meet all requirements for qualification as a profit-sharing plan set forth in the Code as amended from
time to time, for governmental plans, If any provision of this Plan is subject to more than one
interpretation, such ambiguity shall be resolved in favor of that interpretation which is consistent with
this Plan being so qualified,
TABLE OF CONTENTS
ARTICLE
DEFINITIONS 3
II ELIGIBILITY REQUIREMENTS 7
III CONTRIBUTIONS 8
IV INVESTMENT OF CONTRIBUTIONS 9
V VESTING 10
VI DISTRIBUTIONS 11
I VII TERMINATION OF EMPLOYMENT 13
VIII DEATH BENEFITS 14
IX ADMINISTRATION 15
X AMENDMENT AND DISCONTINUANCE OF THE PLAN 16
XI MISCELLANEOUS 17
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POll (March 12. 1993)
Resolution Number ~;?j1t?
ARTICLE I
DEFINITIONS
1.01 "Administrator" means Ibe Employer.
1.02 "Adoption Agreement" means Ibe Public Agency Retirement Syslem (PARS) Adoption Agreement.
1.03 "Beneficiary" means any person or persons, olber Iban Ibe Employer or Ibe Trustee, designated by a
Participant to receive any distributions under Ibis Plan whIch may be due upon Ibe Participant's
dealb. The Beneficiary for a married Participant .hall be Ibe Spouse of Ibe PartiCIpant and may not
be changed to someone oIher then the Spow.e unless Spousal Consent is provided,
1,04 "Code" means Ibe Internal Revenue Code of 1986 and amendments Ibereto.
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LOS (a) "Compensation" means all compensation for Ibe Plan Year paid or payable in cash by Ibe
Employer for personal services to an Eligible Employee. ThIS definition of "Compensation"
shall be subject to Ibe further provisions of Ibis Article, as well as Ibe additionallerms, if
any, specified by Ibe Employer in Ibe Adoption Agreement,
(b) "Compensation" shall not lDclude any amounts paid or payable by reason of services
performed (I) after Ibe dale an Employee ceases to be a Participant, or (2) prior to Ibe date
an Employee becomes a Participant,
(c) "Compensation" shall not include, wllb respect to an)' Employee, in any Plan Year (or such
olber applicable period specifically deSIgnated in Ibe Plan), any compensalIon in excess of
$200,000 or such olber amount established by Ibe Secretary of Treasur)' in accordance wilb
Section 401(a)(17) of Ibe Code. In addition, Compensation shall not include any amounts
contributed by an Employer, for or on account of Employees, under Ibis Plan or under any
other employee benefit plan qualified under Ibe provisions of Section 401(a) of Ibe Code.
(d) For purposes of Ibe HIghly Compen.aled Employee and Family Member definition:
(I) CompensalIon shall mean total compensation as defined herein wilbout regard to contri-
butions made under SeclIons 12S, 402(a)(8), 402(h)(I)(B) and, in Ibe case of Employer
Contributions made pursuant to a salary reduction agreement, 403(b) of Ibe Code,
(2) Compensation paid to a Participant for any Plan Year shall include all CompensalIon for
thet Plan Year paid to any Family Member (hereafter defined) who is a Participant ID
Ibis Plan during such Plan Year,
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(3) "Family Member" shall mean an Employee who is, on anyone day of Ibe Plan Year, a
spouse, lineal ascendant, lineal descendant, or a spouse of an ascendant or descendant,
including a lellally adopted individual, of an individual who during Ibe Plan Year was:
(A) an active or former Employee and a five percent (S %) owner wilbin Ibe meaning of
Section 416(1)(I)(B)(i) of Ibe Code and Ibe regulations Ibereunder, or
(B) one of Ibe Ien most highly-paid Highly Compensated Employees,
1.06 "Computation Period" means Ibe Plan Year.
1.07 "Determination Dale" means wilb respect to any Plan Year (a) Ibe last day of Ibe preceding Plan
Year, or (b) in Ibe case of Ibe first Plan Year of Ibe Plan, Ibe last day ofsuch Plan Year,
1.08 "Effective Dale" means Ibe effective dale of Ibis Plan as staled in Ibe Adopbon Agreement.
1.09 "Eligible Employee" means any Employee who, at any time during which Ibe Employer
maintains Ibis Plan, is not accruing a benefit under anolber Retirement System provided or
malDtained by Ibe Employer. This defmition of "Eligible Employee" shall be subject to Ibe
additional Ierms, If any, specified by Ibe Employer in Ibe Adopbon Agreement.
1.10 "Employee" means any person employed by Ibe Employer on or after Ibe EffectIVe Date of Ibis
Plan,
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I. I I "Employee After Tax Contributions" means Employee Contributions which are not Pick Up
Contributions.
1. 12 "Employee Contributions" means contributions made to Ibe Trust by Ibe Parllclpant, or made to
Ibe Trust by Ibe Employer on behalf of Ibe Participant as Pick Up Contributions,
1. 13 "Employee Contribution Account" means Ibe value of Ibe Participant's interest in Ibis Plan which
is attributable to Employee Contributions and Employee After Tax Conlribullons, determined as of
a specified Valuation Dale.
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Res~lu~i9n Number ~;1~
1.14 'Employer" means the Public Agency which by means of executing the Adoption Agreement has
adopted this Plan subject to the lerms of the Trust,
1.15 "Employer Contributions" means contributions made to the Trust by the Employer on behalf of
the Participant which are not Pick Up Contributions.
1.16 'Employer Contribution Account" means the value of the Participant'. inlerest in thIS Plan which
is attributable to Employer Contribution., determmed as of a specIfied Valuation Date,
1. 17 "Hour of ServIce" means:
(a) (I) Each hour for which an Employee is paid, or entitled to payment, for the performance of
duties for the Employer during an apphcable computation period,
(b) (I) Each hour for which an Employee is paid, Or entitled to payment, by the Employer
(irrespective of whether the employment relationship has lerminaled) on account of a
period of time during which no duties are performed due to vacahon, hohda)', illness,
disability, layoff, jury duty, military duty, or a paid leave of absence during the
applicable computation period.
(2) For purposes of paragraph (I) above a leave of absence shall mclude the absence of an
Employee due to prel!Jlllncy of the Employee, birth of a child of the Employee, placement
of a child with the Employee in connection with the adoption of such child by the Employee
or the carinI! for such child for a period beginning immedialely followmg such birth or
placement. If an Employee has alread)' been credited with a suffiCIent number of Hour. of
Service during the computation peTlod in which a leave of ab.ence occurs as de.cribed in
this paragraph (2) in order to avoid a break in servIce, then such Hours of Service that
would have been Credited pursuant to this paragraph (2) will be credited'to the next
immediate computation period,
If the normal number of Hours of Service cannot be delermined for an Employee wbo is
OD sick leave of absence as described in this paragraph (2) then eight Hours of Service for
each day while the Employee is absent shall be used.
(3) For purposes of this paragraph (b) no more than 100 Hours of Service will be credited to
an Employee during any single Computation Period. The crediting of Hours of Service
under paragraph (2) will be solely for the purpose of delermining whether the Employee
has incurred a break in service.
(c) Each hour for which back pay, irrespective of mitigation of damage., is either awarded or.
agreed to by the Employer.
(d) Solely for purposes of determining whether a break in service for participation and vestmg
purposes has occurred in a computation period, an indIVidual who is absent from work for
maternity or palernlty reasons shall receive credit for the hours of service which would
otherwise have been credited to such individual but for such absence, or in any case in
which such hours cannot be determined, eight (8) hours of service per day of such absence.
For purposes of this paral!raph, an absence from work for malernity or paternit), reasons
means an absence (I) by reaSOn of the pregnancy of the indIVidual, (2) by reason of the birth
of a child of the individual, (3) by reason of the placement of a child with the mdlvldual in
connection with the adopllon of such child by such individual, or (4) for purposes of caring
for such child for a period beginning immedlalely following such birth or placement. The
hours of service credited under this paragraph shall be crediled (I) in the computation period
in which the absence begins If the crediting is necessary to prevent a break in service in that
period, or (2) in all other cases, in the following computation period.
1.18 'Insurer" means any le!!al reserve life insurance company licensed to do business In the Stale
of California.
1.19 'Inactive PartiCIpant" means a Participant who is no longer eligible to participate becau.e he is no
longer in the class of Employee. ehgible to participate under the provi.ions of Arhcle II,
1.20 "Normal Retirement Age" means sixty (60) years of age,
1,21 "Normal Retirement Date' means the first of the month coincident with or next following the date
on which the Participant altains Normal Retirement Age.
1.22 "Participant" means an Eh!!ible Employee who has receIved Compensation from the Employer,
1.23 'PERS" means the California Public Employees Retirement Syslem,
Resolution Number
~'7B
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1.24 .Permanent and Total Disability. means pre.umably permanent mcapac.ty m accordance With the
defmition used by the Federal Social Security Act occurring after the Effecllve Date and resulting
in a Participant being unable to en!!a!!e in any regular gainful employment or occupation by reason
of any medically demonstrable physical or mental cond.lIon, Such Disablhty shall be deemed to
exist only when written aoolication ha. been filed with the Employer by or on behalf of such
Participant and when such Disability is certified to the Employer by a licensed physician approved
by the Employer. Such Disability will not be considered estabhshed unless it has continued for a
period of not less than six (6) consecutive months.
1.25 .Pick Up Contributions. means Employee Contributions made by the Employer on behalf of the
Participant pursuant to Section 414(b) of the Code. Pick Up Contributions shall not, under any
circumstances, be paid to the Participant or be directed by the Participant to be paid for any
purpose except as P,ck Up Contributions to this Plan. The Employer may make Pick Up ContrI-
butions through a reduction in salary, an offset against future salary increases, or a combination of
the two.
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1.26 .Plan. means the Public Agency Rellrement System (PARS), a governmental plan as it may from
time to time be amended,
1.27 .Plan Year. means a period of twelve (12) consecutive months as stated in the Adoption Agreement.
1.28 .Public Agency. means a State, a political subdivision of a State, and any agency or instrumentahty
of a State or political subdivision of a State.
1.29 .Retirement System. means any plan which meets the requirements for a rellrement system under
Section 3121(b)(7)(F) of the Code and regulations thereunder.
1.30 .Spousal Consent. means a written electIon signed by the Spouse to have someone other than the
Spouse considered the Participant's Beneficiary in which case such consent must acknowledge the
non-Spouse Beneficiary. Such written election shall be witnessed by a Plan representative
designated by the Administrator or a notary public and shall acknowledge the effect of such election
on the Spouse.
1.31 .Spouse. means the person to wbom the Participant IS married as of the earlier of the date on
wblcb the Participant's benefits commence or the date of the PartiCIpant's death. To the extent
provided in any qualified domestic relations order a Participant's former Spouse may be treated
as the surviving Spouse for purposes of thiS Plan.
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1.33 .STRS. means the California State Teacbers Retirement System,
1.34 .Trust. means the Public Agency Retirement System (PARS) Trust.
1.35 .Trustee. means the trustee of the Trust.
1.36 .Valuation Date. means the last day of the Plan Year.
1.37 .Vest. means to bave a nonforfeitable rigbt to the Employer Contribullon Account and/or the
Employee Contribution Account.
1.38 .Year of Service. means a period of twelve (12) consecutive months coincidmg WIth the Plan
Year.
1.39 As used in this Plan, the masculine sball include feminine and the singular sball include the plural.
where applicable.
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Resolhtion Number ~j1)?
ARTICLE II
ELIGIBILITY REQUIREMENTS FOR PARTICIPATION
2.1 Eligibility requirements are determined as stated in the Adoption Agreement,
2.2 For purposes of determininl1 Years of Service and Breaks in Service for purposes of e1'l1ibility,
the initial elil1ibility computation period is based on requirements slated in the Adoption
Agreement which shall mean a period of twelve (12) month. commencing on the date on which
the Employee first performs an Hour of Service, The second ehgibihty CompUlation Period
shall be the Plan Year which begins within the first ehglblllty Computation Period, and the third
and subsequent eligibility Compulation Periods shall be subsequent Plan Years.
2.3 An Eligible Employee will become a Participant immediately upon being hired.
2.4 A Participant of this Plan shall cease to be a Participant for the purpose of accruing further
participation credits on the date on which he becomes eligible for another Retirement System, a.
defined by IRS Secbon 3121 (b )(7)(F) the date employment is terminated because of permanent and
tolal disability, the dale on which death occurs, the date of his retirement, or the date of his
termination for any other reason.
2.5 (a) In the event a Participant is no longer a member of the eligible class of Employees as
provided for in Section 2. I above and the Adoption Agreement, and becomes ineligible to
participate, such Employee will partJclpate immediately upon retumlDg to the ehglble clas.
of Employees,
(b) In the event an Employee who is not a member of the eligible class of Employees becomes a
member of the eligible class, such Employee will participate immediately if such Employee
has satisfied the requirements of Section 2. J and the Adoption Agreement.
2,6 A Participant who is no lon!!er eligible to participate because he is no longer in the class of
eligible employees, but who has not terminated employment with the Employer shall become an
Inacbve Participant and shall remain such for twenty-four (24) months after which his interest in
the Plan will (a) be distributed to him or (b) remain as a plan asset until such time as the participant
termlDates employment as a result of death, attainment of Normal Retirement Age, or Permanent and
Total disability. Selection of (a) or (b) shall be made at the time the Participant ceases to be ehgible
to parbclpate in the Plan, In the event that no election is made by the Participant by the clo.e of the
Plan Year, (a) will be utilized.
ARTICLE III
CONTRIBUTIONS
3.1 (a) For each month thaI an Employee remains a Participant under this Plan, the Employer is
responsible for and shall make Employer Contributions to the Trust hereunder which shall be
credited to the Participant's Employer Contributions Account. The amount of the Employer
Contributions to be made for any particular month and with respect to any particular
Participant shall be as slated in the Adoption Agreement.
(b) For each month that an Employee remains a Participant under this Plan, the Employee is respon-
sible for and shall make Employee Contributions to the Trust hereunder which shall be credited
to the Participant's Employee Contributions Account. The amount, if any, of the Employee
Contributions to be made for any particular month and with respect to any particular Participant
shall be as stated in the Adoption Agreement. The employee contribution shall be subject to
IRe Section 414 (b) .before lax. employer pickup, if provided for in the Adoption Agreement,
3.2 The Employer may make contributions to the Trust hereunder sufficient to defray the expenses
of administering this Plan, including any expense charges or fees of the Insurer under the group
annuity contract. In the event of the failure of the Employer to pay such expenses, they shall be
charl1ed apinst the Participants' Employer Contribution Accounts and Employee Contribution
Accounts as specified in the Adoption Agreement.
3.3 . Annual Additions. means for any Plan Year the sum of the following amounts credited to a
Participant's accounts in all qualified defined contribution plans mainlained by the Employer:
(a) Employer COntributions
(b) Employee Contributions
(c) Forfeitures
Resolution Number J/:t11!1
Solely for the purposes of this paragraph, the Total CompensatIOn for a totally disabled (within the
meaning of Section 22(e) of the Code) participant ofa defined contribution plan maintained by the
Employer is the compensation which the parbcipant would have received for the year if the participant
had been paid at the rate of compensation paid immediately before becoming permanently and totally
disabled; provided such imputed compensation may be taken into accounl only if the member is not
an officer, an owner, or a highly compensated employee, and only if contributions to the defined
contribulion plan are nonforfeitable when made. In addition, amounts allocated after March 31,
1984 to an individual medical accounl, as defined in Secbon 415(1)(1) of the Code, which are parI of
a c1efined benefit plan maintained by the Employer, and amounts derived from contributions paid or
accrued after December 31, 1985, in taxable years ending after such date, whIch are attributable to
post-retirement medical benefits allocated to the separate account of a key employee, as defined in
Section 419A(d)(3) of the Code, under a welfare benefil fund, as defined In Section 4J9(e) of the
Code:, maintained by an Employer, shall also be treated as Annual AddItIons,
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3.4 Notwithstanding anything to the contrary contained in this Plan, the Annual Additions to a
Participant's account for any Plan Year shall nOI exceed the lesser of the Defined Contribution
Dollar Limitation (currently $30,(00) for the Plan Year or twenty-five percent (25 %) of the
Participant's Total CompensatIon for the Plan Year. The percentage limItation of the preceding
sentence shall not apply to any contributions for medical benefits (within the meaning of Section
419A(f)(2) of the Code) after separation from service which is otherwise treated as an Annual
Addition under Section 415(1)(1) of the Code.
Excess annual additions: If as a result of the allocation of forfeitures, or a reasonable error in
estimating a Participant's annual compensation, the annual additions under the terms of a plan for a
particular participant would cause the limitations of Section 415 applicable to that participanl for the
limitation year to be exceeded, the excess amounts shall not be deemed annual additions in that
limitation year and shall be treated as follows:
(i) The excess amounts in the participant's account shall be allocated and reallocated to other
participants in the plan. However, if the allocation or reallocation of the excess amounts causes the
limitations of Section 415 to be exceeded with respect to each plan participant for the limitation
year, then these amounts shall be held unallocated in a supense account. If a suspense account is in
existence at any time during a particular limitation year, other than the limitation year described in
the preceding sentence, all amounts in the suspense account shall be allocated and reallocated to
Participants' accounts (subject to the limitations of Section 415) before any employer contributions
and employee contributions which would constitute annual additions may be made to the plan for
that hmitation year.
I
If, in addition to this Plan, the Parbcipant is covered under another qualified defined contribubon
plan maintained by the Employer, a welfare benefit fund, as defined in Code Section 419(e)
maintained by the Employer, or an individual medical account, as defined in Code Section 415 (I)
(2), maintained by the Employer, that provides an Annual Addition during any Limitation Year,
the Annual Additions that may be credited to a Participant's accounts uncler this Plan for any
Limitation Year will not exceed the maximum amount permitted under Code Section 415 reduced
by the Annual Additions credited to a Participant's account under the other Plans and welfare benefit
funds for the same Limitation Year. If the Annual AddItions with respect to the Participant under
other defined contribution plans and welfare benefit funds maintained by the Employer are less than
the maximum amount permiUed under Code Section 415 and the Employer contributions that would
otherwise be contributed or allocated to the Parbcipant's accounts under thi. Plan would cause the
Annual Additions for the Limitation Year \0 exceed this limit, the amount contributed or allocated
uncler this Plan will be reduced so that the Annual AddItIons under all such plans and funds for the
Limitation Year will equal less than the maximum amount permitted under Code Section 415. If
the Annual Additions with respect to the Participant uncler such other defined contribution plans and
welfare benefit fund. in the ap.gregate are equal to or greater than the maximum amount permined
under Code Section 415, no amount will be contributed or allocated to the Participant's accounts
under this Plan for the Limitation Year.
If the employer maintains, or at any time maintained, a quahfied defined benefit plan covering any
Participant in this Plan, the sum of the PartiCIpant's Defined Benefit Fraction and Defined
Contribution Fraction will nol exceed 1.0 for any Limitation Year. For this purpose, the amounl of
the Annual Addilion for any Limitation Year will be reduced to the extenl necessary so thaI the
sum of the Defined Benefit Fraction and Defined Contribution Fraction do not exceed 1.0. For
purposes of the above, the following definitions will apply:
I
Compensation: All of each Participants's compensation (as that term is defined in Code:
1415(c)(3)). For any Self-Employed Individual covered under the Plan, compensation will
':,....~ Resolution Number 4,;:r?G
mean Elrned Income. CompenSltion includes only thlt compensltion which is Ictually paid 10,
or inc]udible in the gross income of, the Plrticipant durIng the "Ippliclble period". For thIS
Plan, except IS specified 10 the contrlry elsewhere in this P]u document, the Ippliclble period
will be the PlIn Year unless Ippliclble IIw IDIndetes I different perIod, in which Clse the
Ippliclble period will be such legelly required period,
I
The Innlll] compensltlon of each Plrticlpant taken into Iccount under the Plln for Iny year will
not exceed $200,000, as adjusted by the Treasury Secretary It the Slme time Ind in the slme
manner IS under Code t415(d), except thlt the doller increase in effect on lInUlry I of Iny
cllender yelr is effective for years beginning in such Cllender year. If the Plln determined
compensltion on I period of time thlt contains fewer thin 12 cI]ender months, then the InnUlI
compenSltion limit is In Imount eqUl110 the InnUlI compensltion limit for the cI]ender year in
which the compensltion period begins multiplied by the rltio obtained by dlvidmg the number of
full months in the period by 12.
In determinmg the compensltion of I Plrticiplnt for purposes of this limIt, the rules of Code
f414(q)(6) will Ipply, except in Ipplymg these rules, "flmi]y" willlDclude only the Perticiplnt's
spouse and any lineal descendents of the Plrticipant who have not attained Ige 19 before the close
of the year. If, IS I result of the Ipplication of these rules, the IdJusted $200,000 hmlt is
exceeded, then (excepl for determining the portion of compensltion up to the IDtegrltion ]evel if
this Plan prOVIdes for permitted disperity), the limit will be prorlted Imong the Iffecled
individUll's compenSltin determined under this seclion before this limit is Ipplied.
If compensltion for Iny prior plln year is taken inlo account in determining the employee's
contributIOns or benefits for the current year, the compensltion for such year, is subJect to the
Ipplicable InnUlI compenslllon hmit in effect for that prior year,
I
Defined Benefit Fraction: A friction, the numerltor of whIch is the sum of the Plrticipant's
projected annUli benefits under III the defined benefit pllns (whether or not termmated) IDImtained
by the Employer, Ind the denominltor of which is the lesser of 125% of the dollar limit
determined for the Limitation Year under Code t415(b) and (d) or 140% of the highest average
compensltion, including any adjustments under Code t415(b).
Notwithstandmg the above, if the Perticiplnt WIS I Perticipant as of the first dey of the first
Limitation Year beginning Ifter December 31, 1986, in one or more defined benefit plans
mlintained by the Employer thlt were m existence on May 6, 1986, the denominltor of tillS
fracllon will not be less than 125% of the sum of the Innual benefits under such plans that the
Perllclpant had Iccrued IS of the close of the ]ISt LimItation Year beginning before JanUlry I,
1987, disregarding any chlnges in the terms Ind conditions of the plan after May 5, 1986. The
preceding sentence applies only If the defined benefil plans indivldUllly Ind in the I~regate
Sltlsfied Code t415 for all Limitallon Yelrs beginning before JanUlry I, 1987.
Defined Contribution Dollar Limitation: $30,000 or if greater, one-fourth of the defined benefit
dollar limitation of Code t415(b)(I) IS in effect for the Limitation Year,
I
Defined Contribution Fraction: A fracllon, the numerltor of which is the sum of the AnnUli
Additions 10 the Perticipant's Iccount under all the defined contribution p]lns (whether or not
terminated) maintained by the Employer for the currentlnd III prior Limitation Years (including
the AnnUli AddItions 11Iributab]e 10 the Plrticipant's nondeductible employee contributions to III
defined benefit pllns, whether or not terminated, mlintained by the Employer, Ind the AnnUli
Additions Ittributable 10 all welfere benefil funds, as defined in Code f419(e), Ind individUlI
mediClI ICcounts, as defined in Code 1415(1)(2), maintained by the Employer), Ind the
denominator of which is the sum of the maximum Iggregate Imounts for the current Ind III prior
Limitation Years of service with the Employer (regerdless of whether I defined contribution plln
WIS maintained by the Emp]oyer). The meximum Iggreglte Imount in any Limitallon Year is the
lesser of 125% of the doller limitation determined under Code f4I5(b) Ind (d) in effect under Code
f415(c)(I)(A) or 35% of the Perticipant's compenSltion for such year.
If the Employee was a Participanl IS of the end of the first dey of the first Limitation Year
beginning Ifter December 31, 1986, in one or more defined contribution plans maintained b)' the
Employer that were in existence on MlY 6, 1986, the numerllor of thiS friction will be Idusted If
the sum of this fraction Ind the Defined Benefit Friction would otherwise exceed 1.0 under the
terms of this plan. Under the adjustment, In amount equal 10 the product of (i) the excess of the
sum of the fractions over 1.0 times (ii) the denominator of this friction, will be permanently
subtrlcted from the numerllor of this friction. The Idjustment is cllcullted using the frictions IS
they would be computed as of the end of the list Limitation Year beginning before J Inuary I,
~esolution Number ~i1~
1987, and disrelZ8fdinlZ any chanlZes in the terms and conditions of the Plan made after May S,
1986, but using the 1415 limitation applicable to the first Umilation Year beginning on or after
January I, 1987.
Employer: For purposes of this Article, Employer will mean the Employer that sponsors this Plan,
and all members of a controlled IZroup of corporations (as defined in Code A414(b) as modified by
1415(h), all commonly controlled trades or businesses (as defined in A414(c) as modIfied by
A415(b) or affiliated service IZroups (as defined in 1415(m) of which the Employer is a part, and
any otber enllty required to be al!l!rel!8ted with the Employer pursuant to regulatIOns under 1414(0)
I
3.5 If the Plan's vesting schedule is amended or the Plan is amended in any way that directly or indirectly
affects the compulation of a Parllcipant's nonforfeitable percentage, or if the Plan i. deemed amended
by an automatic chanlZe to or from a top-heavy vestinlZ scbedule, each Participant with at least three .
years of service with the Employer may elect within a reasonable period after the adoption of the
amendment or change to have his nonforfeitable percentage computed under the Plan without regard to
such amendment, or change,
Election period, The period dunng which the electIOn may be made will begin With the date the
amendment is adopted or deemed to be made and wIll end on the latest of:
(i) 60 days after the amendment is adopted;
(ii) 60 days after the amendment becomes effective; or
(iii) 60 days after the Participant is issued written notice
of the amendment by the Employer or Plan Administrator,
ARTICLE IV
INVESTMENT OF CONTRIBUTIONS
Valuation of Accounts
I
4.1 For the purpose of funding this Plan, the Employer will provide the Trustee with written
direction on how to invest assets consistent with this Arllcle IV. Alternatively, at the option
of the Employer, and With the written consent of the Trustee the Employer may delegate to the
Trustee the authority to determine how the assets of the Plan will be invested, consistenl with
the terms of this Plan and accompanying Trust,
4.2 The Trustee may invest some or all of the contributions in an investment contract issued by an
insurance company licensed to do business in California with a rating of A + or beller awarded
by Standard and Poor's Corporation's Insurer Solvency Review, or in any fund whose principal
is guaranteed by the Federal Deposit Insurance Corporation. Such investment to be made shall
be made at the direction of the Employer, or at the discretion of the Trustee if a valid delegation
of investment decision has been provided to the Trustee by the Employer pursuant to Section 4,1.
4.3 Any group investment contract shall provide for separate accounting of each Participant's Employer
Contribution Account and Employee Contribution Account.
4.4 The value of a Participant's Employer Contribution Account and Employee Contribution Account
shall be determined at least annually on a date herein referred to as a Valuation Date, As of eacb
Valuation Date the trustee shall determine the amount of interest adjustment credited to the total of
all assets held for Employer Contribution Accounts and Employee Contribution Accounts during the
period since the preceding Valuation Date. The total interest adjustment shall be allocated among
all of the active individual Participant and Inactive Participant accounts within each such
classificalion as of the current Valuation Date. The assets of the Trust wIll be valued annually at
fair market value as of the last day of the Plan Year. On such date, the earnings and los.es of the
Trust will be allocated to each Participant's Account In the ratio that each Account Balance bears to
all Account Balances.
I
Contributions to the Trust Fund in an amount, and for a period, which are reasonable in the
4.5
discretion of the Trustee, shall be deposited in an interest-beanng account, which may be an interest
bearing account of the Trustee.
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Resolution Number 4t;?J'/1
,
ARTICLE V
VESTING
5. I (a) Each PartIcipant shall be Vested In his Employer Contribution Account as prOVIded in the
Adoption Agreement.
(b) Each Participant shall be one hundred percent (100%) Vested in his Employee Contribution
Account at all times.
5.2 Any Participant who terminates his employment with the Employer prior to hI' Normal
Retirement Date and who does not meet the requirements under SectIon 5. lea) and the AdoptIon
Agreement above shall lose all rights 10 the balance of his Employer Contributions Account
accrued prior 10 such date.
5.3 No change 10 a Vesting Schedule contained in this Article V and the Adoption A~!Teement shall
deprive a Participant of his nonforfeitable right to his Employer Contributions Account prIOr 10
the adoption of the change, If the Vesting Schedule of this Plan is amended, each Participant
with at least five (5) Years of Service WIth the Employer prior 10 the adoption of the change,
may elcct within a reasonable time after the adoption of the change to have hIS nonforfeitable
percentage computed under the Plan without regard to the change.
ARTICLE VI
DISTRIBUTIONS
6. I A Participant who terminates his employment by reason of death, the attainment of Normal
Retirement Age or Permanent and Total Disability shall be entItled 10 one hundred percent
(100 lli) of the sum of hIS Employer Contribution Account and his Employee Contribution
Account, valued as of the Valuation Date coincidenl with or next following the actual date of
distribution. The sum 10 which such a Participant.s entitled shall be distributed in accordance
with the further provisions of this ArtIcle.
6.2 In the event that the termination of a Participant is caused by his death, hIS Beneficiary shall be
paId his entire benefit in the Plan in one lump sum,
6.3
If the sum 10 which the Participant is entilled is less than $3,500, it shall be distributed to the
PartiCipant as a single sum, If the sum 10 whIch a Participant is entitled is $3,500 or greater it
will also be distributed in the form of a lump sum, but such distribution may not be distributed
10 the Parlicipant prior 10 his Normal Retirement Date without hIS consent.
6.4
A Participant may continue in employment beyond his Normal Retirement Date to a deferred
retirement date which may be the first day of any month subsequent to his normal Rehrement
Date, A Participant who terminates his service on or after his deferred retirement date shall be
entitled 10 one hundred percent (IOOlli) of the sum ofh.s Employer Contribution Account and hIS
Employee ContributIon Account, revalued as of the Valuation Date coincident WIth or next
following the actual date of distribution. The Account shall be dIstributed in accordance WIth
the further provisions of this Article,
6,5
The interest in the Plan of an Inactive Participant shall be distributed to him at the end of a
period of 24 (twenty four) months during whIch he has received no contributions to his accounts
in this Plan, as provided in Article 2.6.
6.6
An Employee who i. a Participant in this Plan will have his entire interest in thIS Plan distributed In
accordance WIth Section 401(a)(9) of the Code. A Participant's entIre interest in this Plan will be:
(a) Distributed commencing not later than the requIred beginning date (in accordance with
Internal Revenue Service regulations) and must be made over one of the following perrod.
(or a combination thereot):
(I) the life of the Participant,
(2) the lives of the Participant and a desi[!JIated Be,neficlary,
(3) a period not extending beyond the life expectancy of the Participant, ort
(4) a period not extending beyond the life expectancy of the Participant and a designated
Beneficiary .
Resolution Number fd7B
(b) Distributed over a period specified in (a) (3) or (4) above, or over a penod not extendlDl!
beyond the hfe expectancy of the designated BeneficIary,
(c) Except as provided below, the required be,l!innlDl! date for purposes of this Section shall be the
April I st of the calendar year followlDl! the later of:
(\) the calendar year in which the Participant attains al!e 70 1/2 or,
(2) the calendar year in which the Participant retires.
(d) For purposes of this Article VI, life expectancy of the Participant and life expectancy of the
Participant and desituJ8ted Beneficiary will be computed using the return multiples contained
in Section 1.72-9 of the Income Tax Regulations. A Participant's life expectancy (and his
Spouse's life expectancy) may not be recalculated.
I
(e) Distribution of a Participant's interest in th.. Plan will be made In accordance with Section
401(a)(9) of the Code and the provisions of such Code section will supersede any provision in
this Plan which may be inconsistent with such Code section.
(I) If distribution is considered to have commenced in accordance with the Regulations before
the Participant's death, the remaininl! interest will be distributed at least as rapidl)' as under
the method of distribution being used as of the date of the Participant's death,
6.7 Distributions made to a Participant's desituJ8ted Beneficiary under this Plan shall be lDcidental to
the primary purpose of providing benefits to Participants and such distribuhons will be made lD
accordance with Section 401(a)(9) of the Code.
6.8 Anythinl! in this Plan to the contrary notwithstandinl!, the Parhcipant shall not have the ril!ht to
elect to have all or part of hIS interest in thIS Plan, which would otherwise become available to
him during his lifetime, paid only to his Beneficiary after his death.
6,9 In no event shall the distribution date of a Participant who becomes entitled to benefits
under this Plan be later than 60th day after the close of the Plan year in which the latest of the
following events occurs:
(a) The Participant reaches his Normal Retirement Date;
(b) The Participant quahfies for Permanent and Total Disabihty;
(c) The Parllcipant terminates employment with the Employer;
I
Notwithstanding the above, a Participant may make written application to the AdmlDlstrator for a
distribution date which may be the first day of any month subsequent to the latest date speCIfied in
(a), (b), or (c) above but in no event will such date be later than the required bel!innlDl! date
specified in this Arhcle.
6.10 A Participant who becomes elil!,ble for another retirement system a. defined by IRC Section
3121(b)(7)(F) or Social Security provided by his employer but does not termlDate employment
with the Employer shall become an Inactive PartiCIpant.
ARTICLE VII
TERMINATION OF EMPLOYMENT
7.1 A Participant who termmates his employment by reason of death, the attainment of Normal
Retirement Date or Permanent and Total Disability shall be entitled to one hundred percent
(IOO!li) of the sum of his Employer Contribution Account and his Employee Contribution
Account, valued as of the Valuahon Date coincident with or next following the actual date of
distrib\ltion. The sum to which such a Participant is entitled shall be distributed in accordance
with the further provisions of this Article.
I
7.2 Upon the Participant's termination of employment with the Employer his Vested interest m this
Plan shall be determined in accordance with Article V of this Plan.
7.3 (a) If upon the Participant's termination of employment his Vested interest in this Plan is less
than $3,500, it shall be distributed immediately to the Participant as a single sum. If the sum
to which a Participant is entitled is $3,500 or greater it will also be distributed in the form of
a lump sum, but such distribution may not be distributed to the Participant prior to his
Normal Retirement Date without his consent.
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, "Resolution: N~er #7&
(b) If upon the Participant's termination of employment hiS Vested interest in this Plan is $3,500
or more, a distribution it will be paid immediately unless the Participant requests that payment
made at his Normal Retirement Dale.
7.4 If a Participant other than a part-t.me, seasonal or temporary employee terminates his
employment with the Employer and is not fully Vested in his Employer Contribution Account on
his date of termination, he shall forfeit that portIon of his Employer Contribution Account in
which he was not vested as of the Valuation Date next following. Any amounts SO forfeited shall
be applied to reduce future Employer Contributions made under this Plan,
ARTICLE VIII
DEATH BENEFITS
8.1 If a married Participant dies prior to receiving his interest in this Plan, his spouse shall become
Beneficiary. If unmarried. his estate shall be the benefiCIary Wlless otherwise evidenced by a
written instrument.
8.2 At any time, and from time to time. each Participant, retired Participant, disabled Participant or
terminated Participant shall have the rigbtto designate the Beneficiary to receive the death
benefits to which he is entitled hereunder. The BenefiCiary for a married Participant shan at all
limes be the Spouse of the Participant and may not be changed to someone other than the Spouse
Wlless Spousal Consent is provided. Each such deSIgnation for death benefits shall be eVidenced
by a written instrument filed with the Administrator and signed by the Participant. If no such
designation is on file with the Administrator at the time of the death of the Partic.pant, or if for
any reason at the sole discretion of the Administrator such designation is defective, then the
Spouse of such Participant shall be conclusively deemed to be the Beneficiary designated to
receive such benefit.
ARTICLE IX
ADMINISTRATION
9.1 The Employer is the Plan Administrator Wlder this Plan within the meaning of the Employee
Retirement Security Act of 1974 (ERISA), as applicable to governmental plans and as amended
from time to time, and shall supervise and control the operation of this Plan in accordance with .ts
terms and may make rules and regulations for the admmistration of this Plan which are not
inconsistent with the terms and provisions hereof.
9.2 The Employer shall see that books of account are kept which shall show all receipts and
disbursements and a complete record of the operation of this Plan, including records of the
Accounts of individual Participants. The Administrator shall be responsible for the preparation,
submission, and/or publication of all reports, descriptions, and forms which may be required for
this Plan to conform to the applicable provisions of the Code.
9.3 In any case where the provisions of this Plan require the consent or approval of the Employer or
Administrator of an election or request made by an Employee, Participant, or Beneficial)', in
order to make such election or request effective. the Employer shall act on such election or
request as promptly as shall be reasonable in the circumstances, In any case where action by the
Insurer Wlder the group annuity contract is necessary in order to make operative an effecllve
election or request made by an Employee, Participant or Beneficiary. it shall be the
responsibility of the Employer to transmit such elecllon or request to the Insurer m writing and
as promptly as shall be reasonable in the circumstances. The Insurer shall not be obliged to take
action under the group annuity contract with respect to any particular election or request unless
the Insurer shall have received the election Or request in such form and detail as shall be
reasonably required by Ibe Insurer.
9.4 The Employer in in~erprelln,ll any prOVision of th.s Plan or in making any judgment or
determination with respect to any person hereunder will apply uniform rules in a like manner to
all persons Wlder similar circumstances.
Resolution Number ~~1~
9.5 If an application or a claim for benefits under this Plan has been filed With the Administrator by a
Participant or Beneficiary (claimant), the Administrator must decide within 90 days (an addItional
90 days may be granted if proper notice is given to the claimant indIcating the special circum-
stances requiring an extension prior to the termination of the initial 90-day period) whether to pay
benefits. If the claimant does not receive any answer from the Administrator within 90 days or in
180 days (in special instances) the claim for benefits shall be considered to have been denied, The
Administrator shall provide the claimant with a written explanation for the deDlal of benefits in
language calculated to be understood by the Participant citing pt'rfmenf provisions of the Plan. an
explanation of the Plan's claim review procedure with appropriate forms for the claimant's use in
submitting his claim, and a description of any information necessary for the clllmant to perfect the
claim.
I
ARTICLE X
AMENDMENT AND DISCONTINUANCE OF THIS PLAN
10.1 While the Employer expects to continue this Plan indefinitely, it necessarily reserves the right to
amend this Plan at any time, No such amendment shall, however, deprive any Participant or
Beneficiary of any benefit previously vested in him under this Plan. Irrespective of any amendment,
DO part of the assets held under this Plan shall ever revert to the Employer or be used for or diverted
to any purpose other than for the exclusive benefit of the Participants.
10.2 It is expressly understood, however, that the power of the Employer to amend this Plan is subject
to this Article, and that no amendment shall be made which would:
(a) deprive any Beneficiary of a then deceased Participant of the right to receive the benefits to
which the Beneficiary may be entitled bereunder,
(b) deprive any Parllcipant of the benefits to which he is entitled hereunder,
(c) deprive any Participant of any of the proportionate interest in this Plan to which he would be
enlltled were be to terminate employment on the date of such amendment,
I
(d) eliminate or reduce an early retirement benefit or retirement Iype subsidy (as defined in
regulations), or
(e) eliminate an optional form of benefit, except to the extent il may be reqUIred 10 qualify, or as
a condition of continued quahfication of this Plan, under SectIOn 401 of the Code.
10.3 This Plan shall be permanent and discontinued upon written notice to the Trustee by the Employer,
A complete discontinuance of contributions by the Employer sball be deemed a discontinuance of
this Plan.
10.4 If this Plan is terminated, partially terminated, or suspended, or if Employer Contributions to this
Plan are permanently discontinued, further contributions to thIS Plan shall thereupon cease and all
credits to the Account of Participants and former Participants who are affected by such termsnation,
partial termination, or suspension shall become one hundred percent (I009li) vested, Any
forfeitures which shall have occurred in accordance with Article VII, Section 7.3 hereof prior to
reduce Employer Contributions hereunder shall be distributed pro-rata among the Accounts of
those Employees who were Participants on the effecllve date of the termination of this Plan.
10,5 In the event the Employer decides it is impossible or not advisable to continue to make its
contributions as herein provided, the Employer shall have the power to terminate thiS Plan through
appropriate resolutions.
10.6 This Plan may not be merged or consolidated with any other plan, nor may any assets or liabilities
of this Plan be transferred to any other plan unless each Participant in this Plan would (if such Plan
had then terminated) receive a benefit Immediately after such merger, consolidation or transfer
which is equal to or greater than the benefit he would have been entitled to receive immedialel)'
before such merger, consolidation or transfer (if this Plan had then termInated),
I
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'Resolution Number ~.;l.7~
ARTICLE XI
MISCELLANEOUS
11.1 Inclusion in this plan shall not be construed as giving the Employee any right to be relained in the
service of the Employer without its consent, nor shall it interfere with the right of the Employer to
ctischarge the Employee, nor shall It give the Employee any right, claim or interest in any
retirement benefits herein described except upon fulfillment of the provisions and requirements of
this Plan.
11.2 (a) To the maximum extent permitted by law, the benefits or payments herein provided shall not
in any way be liable to atlacbment, garnishment or other process, or be seized, taken,
appropriated or applied by any legal or equilable process, to pay any debt or babllity of any
Participant. Except as otherwise permitted by law or an order, decree or judgment issued
pursuant to a Qualified Domestic Relations Order, benefits or payments under this Plan may
nOl be assigned. In the event of any contlict between provisions of this Plan and the lerms
of any description issued in conjunction with the Plan, the provisions of this Plan shall
control.
(b) For purposes of th.s Plan a "Quabfied Domestic Relauons Order" means a domestic
relations order (as specified below) which creates or recognizes the existence of an alternate
payee's (any Spouse, former Spouse, child or other dependent of a PartiCIpant) right to, or
assigns to an alternate payee the right to, receive all or a portion of the benefits payable'lo a
Participant under this Plan. A domestic relatIons order means any judgment, decree or
order (including approval of a property settlement agreement) which relates to the provision
of child support, alimony payments, or marilal property rights to a Spouse, former Spouse,
child or other dependent of a Participant and is made pursuant to a slate domestic relatIOns
order. Such order (a) musl clearly specify (I) the name and last known maibng address (if
any) of the Participant and the alternate payee covered by the order, (2) the amount or
percentalte of the Participant's Account to be paid by the Plan to each alternate payee, or the
manner in which such amount or percentage is to be determined, (3) the number of payments
or period to which such order applies, and (4) the name of each Plan to which such order
applies, and (b) must not require (1) the plan to provide any type or form of benefits, or any
option, not otherwise provided under the Plan, or (2) provide increased benefits, and (3) the
payment of benefits to an alternate payee which are required to be pa.d to another alternate
payee under another order previously Qualified Domestic Relations Order. The provisions
relating to the establishment of a Qualified Domestic Relations Order and the payment of
any benefits to an alternate payee shall be applied in the method and manner which is
consistent with Section 414(p) of the Code.
11.3 (a) This section applies to distributions made on or after January I, 1993, Notwithstanding
any provision of the plan 10 the contrary that would otherwise limit a distributee's
election under th.s section. a distnbutee may elect, at the time and in the manner
prescribed by the plan admin.strator, to have any portion of an eligible rollover
distribution paid directly to an ebgible retirement plan specified by the dlstribulee in a
direcl rollover.
(b) Definitions
(.) Ebltible Rollover Distribution: An ebgible rollover distribution is any distribution of
all or any portion of the balance to the crecht of the distributee, except that an eligible
rollover distribution does not include: any distribution that is one of a series of
substantially equal periodic payments (nOl less frequently than annually made for the life
(or life expectancy) of the distributee or the Iointlives (or joint life expectancies) of the
distributee and the distributee's designated beneficiary, or for a specified period len
years or more;, any distribution that is not includible in gross income (determined without
regard to the exclusion for net unrealized appreciation with respect to employer
securities).
(ii) Eligible retirement plan: An elisible retirement plan is an indIVidual retirement
accOllDt described in section 408(a) of the Code, an individual retirement annuity
described in section 408(b) of the Code, an annuity plan described in section 403(a) of
the Code , or a quabfied trust described in section 401(a) of the Code, that accepts the
distributee's elisible rollover distribution. However, in the case ofan elisible rollover
distribution to the surviving spouse, an eligible retirement plan is an individual
retirement account or individual retirement annuity.
Resolution Number ~I'~
(iii) Distributee: A distributee includes an employee or former employee, In addItion,
the employee's or former employee's surviving spouse and the employee's or former
employee's spouse or former spouse who is the alternate payee under a qualified
domestic relations order, as defined in section 414(p) of the Code, are distributees with
reprd to the interest of the spouse or former spouse.
(iv) DireCt Rollover: A direct rollover is a payment by the plan to the ehgible rellrement
plan specified by the dIStributee,
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Executed this ..3O.tAlay of Novpmhl'r . 199....3. at C:;p~ 1 Rp~c:h. C~ 1; forn ;.a
~A,:{~ L4~,-
Si lure of P Administrator
City Manager
Title
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