Resolution No. 5042
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RESOLUTION NO. 5042
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON ADOPTING A DEFERRED COMPENSATION PLAN AND
EXECUTING THE ICMA RETIP~MENT TRUST AND APPOINTING
THE CITY ADMINISTRATOR TO BE THE COORDINATOR OF
THIS PROGRM1 ON BEHALF OF THE CITY OF VERNON
6 WHEREAS, the City of Vernon ("Employer") maintains a
7 deferred compensation plan for its employees which is administered
8 by the ICMA Retirement Corporation (the "Administrator"); and
9 WHEREAS, the Administrator has recommended changes in
10 the plan document to comply with recent federal legislation and
11 Internal Revenue Service Regulations governing said plans; and
12 WHEREAS, the Internal Revenue Service has issued a
13 private letter ruling approving said plan document as complying
14 with Section 457 of the Internal Revenue Code; and
15 WHEREAS, other public employers have joined together
16 to establish the ICMA Retirement Trust for the purpose of
17 representing the interests of the participating employers with
18 respect to the collective investment of funds held under their
19 deferred compensation plans; and
20 WHEREAS, said Trust is a salutary development which
21 further advances the qualify of administration for plans
22 administered by the ICMA Retirement Corporation.
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23 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
24 THE CITY OF VERNON AS FOLLOWS:
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SECTION 1: That the Employer hereby adopts the
26 deferred compensation plan, attached hereto as Appendix A, as
27 an amendment and restatement of its present,deferred compensation
28 plan administered by the ICMA Retirement Corporation, which shall
1 continue to act as Administrator of said plan.
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SECTION 2: That the Mayor is hereby authorized to
3 execute the ICMA Retirement Trust on behalf of the Employer
4 which is attached hereto as Appendix B.
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SECTION 3: That the Employer hereby adopts the trust
6 agreement with the ICMA Retirement Corporation, as appears at
7 Appendix C hereto, as an amendment and restatement of its existing
8 trust agreement with the ICMA Retirement Corporation, and directs
9 the ICMA Retirement Corporation, as Trustee, to invest all funds
10 held under the deferred compensation plan through the ICMA
11 Retireme~t Trust as soon as is practicable.
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SECTION 4: That the City Administrator shall be the
13 coordinator for this program and shall receive necessary reports,
14 notices, etc. from the ICMA Retirement Corporation as
15 Administrator, and shall cast, on behalf of the Employer, any
16 required votes under the p~ogram. Administrative duties to
17 carry out the plan may be assigned to the appropriate departments.
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SECTION 5: The City Clerk of the City of Vernon shall
19 certify to the passage of this Resolution and thereupon and
20 thereafter the same shall be in full force and effect.
21 APPROVED AND ADOPTED this 20th day of September, 1983.
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LEONIS C. MALB
ATT~:. .~~.' .
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BRUCE V. MALKENHORST, City Clerk
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1 STATE OF CALIFORNIA )
) SSe
2 COUNTY OF LOS ANGELES )
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4 'I I, BRUCE V. MALKENHORST, City Clerk of the City of
5 I Vernon, do hereby certify that tbe foregoing Resolution, being
Resolution No. 5042 , was duly adopted by the City Council of
the City of Vernon, and was approved by the Mayor of said City
September 20
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BRUCE V. HALKENHORST, City .1
Clerk
at a regular meeting of the City Council held on Tuesday,
, 19 83
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'APPEtU11X A
("EMPLOYER")
DEFERRED COMPENSATION PLAN
I. 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 provide retirement income
and other deferred benefits to the Employees of the Employer in
accordance with the provisions of section 457 of hie Internal
Revenue Code of 1954, as amended.
This Plan shall be an agreement solely between the Employer
and participating Employees.
II. DEFINITIONS
2.01 Account: The bookkeeping account maintained for each
Participant reflecting the cumulative amount of the
Participant's Deferred Compensation, 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 distribu-
tions to the Participant or the Participant's Beneficiary and
any fees or expenses charged agaihst such Participant's
Deferred Compensation.
2.02 Administrator: The person or persons named to carry out
certain nondiscretionary administrative 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 the case the Employer shall
name another person or persons to act as Administrator.
2.03 Beneficiary: The person or persons designated by the
Participant in his Joinder Agreement who shall receive any
benefits payable hereunder in the event of the Participant's
death.
2.04 Deferred Compensation: The amount of Normal Compensa-
tion otherwise payable to the Participant which the
Participant and the Employer mutually agree to defer
hereunder. any amount credited to a Participant's Account by
reason of a transfer under Section 6.03, or any other amount
which the Employer agrees to credit to a Participant's
Account.
2.05 Employ": Any individual who provides services for the
Employer, whether as an employee of the Employer or as an
independent contractor, and who has been designated by the
Employer as eligible to participate in the Plan.
2.06 Includible Compensation: The amount of an Employee's
compensation from the Employer for a taxable year that is
attributable to services performed 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 amountexcludablefrom gross income under this
Plan or any other plan described in section 457(b) of the
Internal Revenue Code, any amount excludable from gross
income under section 403(b) of the Internal Revenue Code,
or any other amount excludable from gross inCome for
federal income tax purposes. Includible Compensation shall
be' determined without regard to any community property
laws,
2.07 Joinder Agreement: An agreement entered into between an
Employee and the Employer, including any amendments or
modifications thereof. Such agreement shall fix the amount
of Deferred Compensation, specify a preference among the
investment alternatives designated by the Employer,
designate the Employee's Beneficiary or Beneficiaries, and
incorporate the terms, conditions, and provisions of the Plan
byreference.
2.08 Normal Compensation: The amount of compensation which
would be payable to a Participant by the Employer for a
taxable year if no Joinder Agreement were in effect to defer
compensation under this Plan.
2.09 Normal Retirement Age: Age 70, unless the Participant has
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 (a) the latest time when benefits may commence
under this Plan (unless the Participant continues emp.loy-
mentafter Normal Retirement Age). and (b) the period during
which a Participant may utilize the catch-up limitation of
Section 5.02 hereunder. Once a Participant has to any extent
utilized the catch-up limitation of Section 5.02. his Normal
Retirement Age may not be changed.
A Participant's alternate Normal Retirement Age may not
be earlier than the earliest date that the Participant will
become eligible to retire and receive unreduced retiremeht
benefits under.the Employer's basic retirement plan covering
the Participant and may n.ot be later than the date the
Participant attains age 70. If a Participant continues
employment after attaining age 70, not having previously
elected an alternate Normal Retirement Age, the Participant's
alternate Normal Retirement Age shall not be later than the
mandatory retirement age, if any, established by the
Employer, or the age at which the Participant actually
separates from service if the Employer has no mandatory
retirement age. If the Participant will not become eligible to
receive benefits under a basic retirement plan maintained by
the Employer, the Participant's alternate Normal Retirement
Age.may not be earlier than attainment of age 55 and may not
be later than attainment of age 70.
2.10 Participant: Any Employee who has joined the Plan pursuant
to the requirements of Article IV.
2.11 Plan Year: The calendar year.
2.12 Retlremenl: The first date upon which both of the following
shalf have occurred with respect to a Participant: Separation
from Service and attainment of Normal Retirement Age.
2.13 Separation from Service: Severance of the Participant's
employment with the Employer. A Participant shall be
deemed to have severed his employment with the Employer
for purposes of this Plan when, in accordance with the
established practices of the Employer, the employment
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
services 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.
III. ADMINISTRATION
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.
3.02 Duties of Administrator: The Administrator, as agent for the
Employer, shall perform nondiscretionary administrative
functions in connection 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
accordanc;e with the provisions of this Plan.
IV. PARTICtPATION IN THE PLAN
4.01 Initial Participation; An Employee may become a Participant
by entering into a Joinder Agreement prior to the beginning
of the caloodar month in which the Joinder Agreement is to
become effective to defer compensation not yet earned.
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 future deferrals tozero) or to
change his investment preference (subject to such restric-
tions as may result from the nature or terms of any investment
made by the Employer). SUCh amendment shall become
effective as of the beginning of the calendar month
commencing alter the date the amendment is executed. A
Participant may at any time amend his Joinder Agreement to
change the designated Beneficiary and such amendment
snail become effective immediately.
V. LIMITATIONS ON DEFERRALS
5,01 Normal Limitation: Except as provided in Section 5.02, the
maximum amount of Deferred Compensation for any
Participant for any taxable year shall notexceed the lesser of
$7,500.00 or 33 1/3 percent of the Participant's Includible
Compensation for the taxable year. This limitation will
ordinarily be equivalent to the lesser of $7,500.00 or 25
percent of the Participant's Normal Compensation.
5.02 Catch-up limitation: For each of the last three (3) taxable
years of a Participant ending before his attainment of Normal
Retirement Age, the maximum amount of Deferred
Compensation shall be the lesser of: (1) $15,000or (2) the
sum of (i) the Normal Limitation for the taxable year, and (ii)
that portion of the Normal Limitation for each of the prior
taxable years of the Participant commencing after 1978
dUring which the Plan was in existence and the Participant
was eligible to participate in the Plan (or in any other plan
established under section 457 of the Internal Revenue Code
by an employer within the same State as the Employer) less
the amount of Deferred Compensation for each such prior
taxable year (including amounts deferred under such other
plan). For purposes of this Section 5.02, a Participant's
InCludible Compoosation for the current taxable year shall be
deemed to include any Deferred Compensation for the
taxable year in excess of the amount permitted under the
Normal Limitation, and the Participant's Includible Compen-
sation for any prior taxable year shall be deemed to exclude
any amount that could have been deferred under the Normal
Limitation for such prior taxable year.
5.03 Section403(b) Annuities: For purposes of Sections 5.01 and
5.02, amounts contributed by the Employer on behalf of a
Participant for the purchase of an annuity contract described
in section 403(b) of the Internal Revooue Code shall be
treated as if SUCh amounts constituted Deferred Compensa-
tion under this Plan for the taxable year in which the
contribution was made and shall thereby reduce the
maximum amount that may be deferred for such taxable year.
Vt. tNVESTMENTS AND ACCOUNT VALUES
6.01 Investment of Deferred Compensation: All investments of
Participants' Deferred Compensation made by the Employer,
including all property and rights purchased with such
amounts and all income attributable thereto, shall bethe sole
property 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.
6.tJ2 Crediting of Accounts: The Participant's Account shall reflect
the amount and value of the investments or other property
obtained by the Employer through the investment of the
Participant's Deferred Compensation. It is anticipiited that
the Employer's investments with respect to a Participant will
conform to the investment. preference specified in the
Participant's Joinder Agreement, but nothing herein shall be
construed to require the Employer to maRe any particular
investment of a Participant's Deferred Compensation. Each
Participant shall receive periodic reports, not less frequently
than annually, showing the thoo-current value of his
Accou nt. '
6.03. Acceptance of Transfers: Pursuant to an appropriate written
agreement, the Employer may accept and. credit to a
Participant's Account amounts transferred from another
employer within the same State representing amounts held
by such other employer under an eligible State deferred
compensation plan described in section 457 of the Internal
Revenue Code. Any such transferred amount shall not be
treated as a deferral subject to the limitations of. Article V,
provided however, that the actual amount of any deferral
under the plan from whiCh the transfer is made shall be taken
into account in computing the catCh-Up limitation under
Section 5.02.
6.04 Employer Uability: In no event shall the Employer's liability to
pay benefits to a Participant under Article VI exceed the value
of the amountscrediled to the Participant's Account; the
Employer shall not be liable for losses arising from
depreciation or shrinkage in the value of any investments
acquired under this Plan.
VII. BENEFITS
7,01 Retirement Benefits and Election on Sep,nation from
Service: Except as otherwise provided in this Article VII, the
distribution of a Participant's Account shall commence
during the second calendar month after the close of 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 Section 7.02.
NotwithStanding the foregoing, the Participant may irrevo-
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cably elect within 60 days following Separation from Service
to have the distribution of benefits commence on a date other
than that described in the preceding sentence which is at
least 60 days after the date such election is delivered in
writing to the Employer and forwarded to the Administrator
but not later than 60 days after the close of the Plan Year of
the Participant's Retirement.
7.02 Payment Options: As provided in Sections 7.01,7.05 and 7.06,
a Participant may elect to have the value of his Account
distributed in accordance with one of the following payment
options, provided that .such option 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,
'continu~ng until his Account is exhausted;
(b) One lump sum payment;
(c) Approximately equal monthly, quarterly, semi-annual
or annual payments, calculated to continue for a period
certain chosen by the Participant;
(d) Payments equal to payments made by the issuer of a
retirement annuity pOlicy acquired by the Employer;
(e) Any other payment option elected by the Participant
and agreed to by the Employer.
A Participant's election of a payment option must be made at
least 30 days before the payment of benefits is to commence.
If a PartiCipant 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.
7.03 Limitation on Options: No payment option may be selected
by the Participant under Section 7.02 unless the present value
of the payments to the Participant, determined as of the date
benefits commence, exceeds 50 percent of the value of the
Participant's Account as of the date benefits commence.
Present value determinations under this Section shall be
made by the Administrator in accordance with the expected
return multiples set forth in section 1.72-9 of the Federal
lncome Tax Regulations (or any successor proviSion to such
regulations),
1.04 Post-retirement Death Benefits: Should the Participant die
after he has begun to receive benefits under a payment
option, the remaining payments, if any, under the payment
option shall be payable to the Participant's Beneficiary
commencing within 60 days after the Administrator receives
proof of the Participant's death, unless the Beneficiary elects
payment under a diff.erent payment option at least 30 days
prior to the date that the first payment becomes payable to
the Beneficiary. In no event shall the Employer or
Administrator be liable to the Beneficiary for the amount of
any payment made in the name of the Participant before the
Administrator receives proof of death of the Participant.
Notwithstanding the foregoing, payments to a Beneficiary
shall not extend over a period longer than (i) the Beneficiary's
life expectancy if the Beneficiary is the Participant's spouse
or (H) fifteen (15) years if the Beneficiary is not the
Participant's spouse. If no Beneficiary is designated in the
Joinder Agreement, or if the designated Beneficiary does not
survive the Participant for a period of fifteen (15) days, then
the commuted value of any remaining payments under the
payment option shall be paid in a lump sum to the estate of
the Participant. If the designated Beneficiary survives the
Participant for a period of fifteen (15) days, but does not
continue to live for the remaining period of payments under
the payment option (as modified, if necessary, in conformity
with the third sentence of this section), then the commuted
value of any remaining payments under the payment option
shall be paid in a lump sum to the estate of the Beneficiary.
7.05 Pre--retirement Death Benefits: Should the Participant die
befOre he has begun 10 receive the benefits provided by
Sections 7.01 or 7.06, a death benefit equai to the value olthe
Participant's Account shall be payable to the Beneficiary
commencing no later than 60 days after the close of the Plan
Year in which the Participant would have attained Normal
Retirement Age. Such death benefit shall be paid in alump
sum unless the Beneficiary elects a different payment option
within 90 days of the Participant's death. A Beneficiary who
may elect a payment option pursuant to the provisions of the
preceding sentence shall be treated as if he 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 if the Beneficiary is the
Participant's spouse and must provide for payments over a
period not in excess of fifteen (15) years if the Beneficiary is
not the Participant's spouse.
1.06 Disability: I n the event a Participant becomes disabled before
the commencement of Retirement benefits under Section
7.01, the Participant may elect to commence benefits under
one of the payment op.tions desCribed in Sectioo 7.02 on the
last day otthe month following a determination of disability
by the Employer. The Participant's request for such
determination must be made within a reasonable time after
the impairment which constitutes the disability occurs.. A
Participant shall be considered diSabled for purposes of this
Plan if he is unable to engage in any substantial gainful
activity by reason of any medically determinable physical Or
mental impairment which can be expected to result in death
or be of long-continued and indefinite duration. The
disability of any Participant shall be determined in
accordance with uniform principles consistently applied and
upon the basis of such medical evidence as the Employer
deems necessary and desirable.
7.07 Unforeseeable Emergencies: In the event an unforeseeable
emergency occurs, a Participant 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 Participantshall
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 cessation of deferral under the Plan, insurance or
other reimbursement, or liquidation of other assets t9 the
extent such liquidation would not itself cause severe financial
hardship. An unforeseeable emergency shall be deemed to
involve only circumstances of severe financial hardship to the
Participant resulting from a sudden and unexpected illness or
accident of the Participant or of a dependent (as defined in
section 152(a) of the Internal Revenue Code) of .the
Participant, loss of the Participant's property dueto casualty,
or other similar and extraordinary unforeseeable circum-
stances arising as a result of events beyond the control of the
Participant. The need to send a Participant's child to college
or to purchase a new home shall not be considered
unforeseeable emergencies. The determination as to
whether such an unforeseeable emergency exists shall be
based on the merits of each individual case.
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VIII. NON-ASSIGNABILITY
No Participant or Beneficiary shall have any right to commute,
sell. assign. pledge, transfer or otherwise conveyor encumber the
right to receive any payments hereunder, which payments and
rights are expres~ly declared to be non-assignable and non-
transferable.
IX. RELATIONSHIP TO OTHER PLANS ANDEMPLQYMENT
AGREEMENTS
ThisPlan 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
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any sucf't plan or system. Nothing contained in this Plan shall be
deemed to constitute an emptoyment contract or agreement
between any Participant and the Employer or to give any
Participant the right toPe retained in the employ of the Employer.
Nor shall anything herein beconstruedlo mOdify the terms of any
employment contract or agreement between a Participant and the
Employer.
X. AMENDMENT OR TERMINATION OF PLAN
The Employer may at anytime amend this Plan provided that it
transmits such amendment in writing to the Administrator at least
30 days prior to the effective date of the amendment. The consent
of the Admjnistratorshall not b.e required in order for such
amendment to Pecome effective. but tile Administrator shall be
under no obligationto continue acting as Administrator hereunder
if it disapproves of such amendment. The. Employer may at any
time terminate this Plan.
The Administrator may atany time propose an amendment 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 unless, 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.
No amendment or termination of the Plan shall divest any
Participant Of any rights witllrespect to co~pensation deferred
before the date of the amendment or termination.
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 State deferred compensation
plan" under section.457 of the Internal Revenue Code of 1954, as
amended. The provisions of this Plan shaH be interpreted wherever
possible in conformity with the requirements of that section.
XII. GENDER AND NUMBER
The masculine pronoun, whenever used herein, shall include the
feminine pronoun, and the singular shall include the plural. except
where the context requires otherwise.
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APPENDIX B
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DECLARATION OF TRUST
of
ICMA RETIREMENT TRUST
ARTICLE I. Name and Definitions
SECTION 1.1. Name. The Name of the Trust created 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) By-Laws. The By-Laws 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 ben~fits to its
employees in accordance with the provisions of section 457 of
the Internal Revenue Code of 1954. as amended.
(c) 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.
(d) ICMA. The International City Management Association.
(e) ICMA/RC Trustees. Those Trustees elected by the Public
Employers who. in accordance with the provisions of Section
3.1(a) hereof. are also members of the Board of Directors of ICMA
or RC.
(f) Investment Adviser. The Investment Adviser that enters into a
contract with the Retirement Trustlo provide advice with respect
to investment of the Trust Property.
(g) 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.
(h) Portfolios. The Portfolios of investments 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.
(I) Public Employee Trustees. Those Trustees elected by the
PubliC Employers who, in accordance with the provisions of
Section 3.1(a) hereof, are full-time employees of Public
Employers.
(i) Public Employer. A unit of state or local government, or any
agency or instrumentality thereof, that has adopted a Deferred
Compensation Plan and has executed this Declaration of Trust.
(k) RG. The International City Management Association
Retirement Corporation.
(I) Retirement Trust. The Trust created by this Declaration of
Trust.
(m) Trust Property. The amounts held in the Retirement Trust on
behalf of the Public Employers. The Trust Property shall include
any inCome resulting from the investment of the amounts so held.
(n) Trustees. The Public Employee Trustees and ICMA/RC
Trustees elected by the PubliC Employers to serve as members of
the Board of Trustees of the Retirement Trust.
ARTICLE II. Creation and Purpose of the Trust; Ownership of Trust
Property
SECTION 2.1. Creation. The Retirement Trust is created and
established by the execution oHhisDeclaration of Trust by the Trustees
and the participating Public Employers.
SECTION 2.2. Purpose. The purpose of the Retirement Trust is to
provide for the commingled investment of funds held by the Public
Employers in connection with their Deferred Compensation Plans. The
Trust Property shall be invested in the Portfolios, in Gl.Iaranteed
Investment Contracts and in other investments recommended by the
Investment Adviser under the supervision of the Board of Trustees.
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 Trust Property.
ARTICLE III. Trustees
SECTlON 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 persons who ,at the time of election to the
Board of Trustees, are members of the Board of Directors of
ICMA and two persons who, at the time of election, are members
of the Board of Directors of RC (the ICMA/RC Trustees). One of
the Trustees who is a director of ICMA, and one of the Trustees
who is a director of RC, shall, at the time of election, be full-time
employees of a Public Employer.
(b) No person may serve as a Trustee for more than one term in
any ten-year period.
SECTION 3.2. Election and Term.
(a) Except for the Trustees appointed to fill vacancies pursuant
to Section 3.5 hereof, the Trustees shall be elected by a vote of a
majority of the Public Employers in accordance with the
procedures set forth in the By-Laws.
(b) At the first election of Trustees, three. Trustees shall be
elected for a term of three years, three Trustees shall be elected
for a term of two years and three Trustees shall be elected for a
term of one year. At each subsequent election, three Trustees
shall be elected for a term of three years and until his or her
successor is elected and qualified.
SECTION 3.3. Nominations. The Trustees who are full-time
employees of Public Employers Shall serve as the Nominating
C.ommittee for the Public Employee Trustees. The Nominating
COmmittee shall choose candidates for Public Employee Trustees in
accordance with the procedures set forth in the By-Laws.
SECTION 3.4. Resignation and Removal.
(a) Any Trustee may resign as Trustee (without need for prior.or
subsequent accounting) by an instrument in writing signed by the
Trustee and delivered to the other Trustees and suchresignati.on
shall be effective upon such delivery, or at a later date acc.ording
to the terms of the instrument. Any of the Trustees may be
removed for cause. by a vote of a majority of the Public
Employers.
(b) Each Public Employee Trustee shall resign his or her position
as Trustee within sixty days of the date on which he or she ceases
to be a full-time employee of a Public Employer.
pECTION 3.5. Vacancies. The term of office ot a Trustee shall
terminate 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
wrillen instrument signed by a majority of the Trustees. The person
appointed must be the same type of Trustee (Le.. 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 tater date by reason of retirement or resignation.
provided that such appointment shall not become effective priorto such
retirement or resignation. Whenever a vacancy in the number of
Trustees shall occur, until such vacancy is filled as provided in this
Section 3.5, the Trustees in office. regardless of their number. shall have
all the powers granted to the Trustees and shall discharge all the duties
imposed upon the Trustees by this Declaration. 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 vacancy.
SECTION 3.6. Trustees Serve in Representative Capacity. By
executing this 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 collectively.
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 carryon its operations. Such
power shall include, but shall not be limited to, the power to:
(a) receive the Trust Property from the Public Employers or from
a Trustee of any Employer Trust;
(b) enter into a contract with an Investment Adviser providing.
among other things. for the establishment and operation of the
Portfolios. selection of the Guaranteed Investment Contracts in
which the Trust Property may be invested. selection of other
investments for the Trust Property and the payment of reasonable
fees to the Investment Adviser and to any su b-investment adviser
retained by the Investment Adviser;
(c) review annually the performance of the Investment Adviser
and approve annually the contract with such Investment Adviser;
(d) invest and reinvest the Trust Property .in the Portfolios. the
Guaranteed Investment Contracts and in any other investment
recommended by the Investment Adviser. provided that if a
Public Employer has directed that its monies be invested in
specified Portfolios orin 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;
(f) 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 inve.stments here-
under;
(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 any investments in
bearer form. 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 may be necessary or appropriate to carry out the
powers herein granted;
(i) vote upon any stock. bonds, or other securities; give general
or special proxies or powers of attorney1lri\tl or without power of
substitution; exercise any conversi.onpfivileges. subscription
rights. or other options, and make any payments incidental
thereto; oppose. or consent to. or otherwise participate in,
corporate reorganizations or 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 godS or services
required in connection with the operation of the Retirement
Trust, including, but not limited to. contracts with e-uatodians and
contracts for the provision of administrative
(k) borrow or raise money for the
Trust in such amount. and upon such I
Trustees shalt deem advisable, provided that the aggregate
amount of such borrowings shall not eXceed ~ot1he 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 of any such
borrowing;
(1) incur reasonable expenses as required for the operation of the
Retirement Trust and deduct such expenses from the Trust
Property;
(m) pay expenses properly allocable to the Trust Property
incurred in connection with the Defened Compensation Plans or
the Employer Trusts and deduct such expenses frOm that portion
of the Trust Property beneficially 0IRred by the Public Employer
to whom such expenses are properly allocable;
(n) payout of the Trust Property all real and perllf)hal property
taxes, income taxes and other taxes of any and all kil'lds which, in
the opinion of the Trustees, are properly levied, or :assessed
under existing or future laws upon, or in respect6f. the Trust
Property and allocate any such taxes to the appropriate accounts;
(0) adopt, amend and repeal the By-taws. provided that such By-
Laws 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 adEl'ferred compensation.
plan under section 457 of the Internat Revenue Code. as
amended;
(q) issue the Annual Report of the Retirement Trust. and the
disclosure documents and other literature used by the
Retirement Trust;
(r) make loans. including the purchase of 4ebt. Obligations,
provided that all such loans shall bear interest at the curren!
market rate;
(s) contract for. and delegate any powers gratlt.otltBeander to
such officers, agents. employees. auditors and .' as thl
Trustees may select, provided thatthe Trusteesmay an
the powers set forth in paragraphs: (b). (c) and (0) 0 SectiOl
4.1 and may not delegate any powers if such delegation wouh
violate their fiduciary duties;
(t) provide for the indemnification of the officers and Trustees c
the Retirement Trust and purchase fiduciary insurance;
(u) maintain bookS and records, indbding separat.~c:;ountsfc
each Public Employer or Employer Trust an
separate accounts as are requiredl.ll'ldltr. and
Deferred Compensation Plan of each Pub/iG
2
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. APPENDIX C
TRUST AGREEMENT WITH
THE ICMARETIREMENT CORPORATION
AGREEMENT made by and between the Employer named in the
attached resolution and the International City Management Association
Retirement Corporation (hereinafter the "Trustee" or URetirement
Corporation"), a nonprofit corporation organized and existing under the
laws of the State of Delaware, for the purpose of investing and otherwise
administering the funds set aside by Employers in connection with
deferred compensation plans established under section 457 of the
Internal Revenue Code of 1954 (the"Code"). This Agreement shall take
effect upon acceptance by the Trustee of its appointment by the
Employer to serve as Trustee in accordance herewith as set forth in the
attached resolution.
WHEREAS, the Employer has established a deferred compensation plan
under section 457 of the Code (the UPlan");
WHEREAS, in order that there will be sufficient funds"available to
discharge the Employer's contractual obligations under the Plan, the
Employer desires to set aside periodically amounts equal to the amount
of compensation deferred;
WHEREAS, the funds set aside, togetherwith any and all assets derived
from the investment thereof, are to be exclusively within the dominion,
control, and ownership of the Employer. and subject to the Emp'!oyer's
absolute right of withdrawal, no employees having any interest
whatsoever therein;
NOW, THEREFORE, this Agreement witnesseth that (a) the Employer
will pay monies to the Trustee to be placed in deferred compensation
accounts for the Employer; (b) the Trustee covenants that it will hold
said sums: and any other funds which it may receive hereunder, in trust
for the uses and purposes and upon the terms and conditions
hereinafter stated; and (c) the parties hereto agree as follows:
ARTICLE I. General Duties of the Parties.
Section 1.1. General Duty of the Employer. The Employer shall make
regular periodic payments equal to the amounts of its employees'
compensation which are deferred in accordance with the terms and
conditions of the Plan to the extent that such amounts are to be invested
t!nder the Trust.
Section 1.2. General Duties of the Trustee. The Trustee shall hold all
funds received by it hereunder, which, together with the income
therefrom, shall constitute the Trust Funds. It shall administer the Trust
Funds, collect the income thereof, and make payments therefrom, alias
hereinafter provided. The Trustee shall also hold all Trust Funds which
are transferred to it as successor Trustee by the Employer from existing
deferred compensation arrangements with its Employees under plans
described in section 457 of the Code. Such Trust Funds shall be subject
to all of the terms and provisions of this Agreement.
ARTICLE II. Powers and Duties of the Trustee in Investment,
Administration, and Disbursement of the TrustFunds.
Section 2.1. Investment Powers and Duties of the Trustee. The
Trustee shall have the power to invest and reinvest the principal and
income of the Trust Funds and keep the Trust Funds invested, without
distinctIon between principal and income, in securities or in other
property. real or personal, wherever situated., including, but not limited
to. stocks, common or preferred, bonds, retirement annuity and
insurance pOlicies, mortgages. and other evidences of indebtedness or
ownerShip, investment companies, common or group trust fUnds, or
separate and different types of funds (including equity, fixed income)
which fulfill requirements of state and local governmental laws,
provided, however, that the Employer may direct investment by the
Trustee among available investment alternatives in such proportions as
the Employer authorizes in connection with its deferred compensation
agreements with its employees. For these purposes, these Trust Funds
may be commingled with Trust Funds set aside by other Employers
pursuant to the terms of the ICMA Retirement Trust. Investment powers
vested in the Trustee by the Section may be delegated by the Trustee to
any bank, insurance or trust company, or any investment advisor,
manager or agent selected by it.
Section 2.2. Administrative Powers of the Trustee. The Trustee shal.l
have the power in its discretion:
(a) To purchase, or subscribe for. any sec.urities or other
property and to retain the same in trust.
(b) To sell, exchange, convey, transfer or otherwise dispose of
any securities or other property held by it, by private contract, or
at pUblic auction. No person dealing with the Trustee shall be
bound to see the application of the purchase money or to inquire
into the validity, expediency, or propriety of any such sale or
other disposition.
(c) To vote upon any stocks, bonds, or other securities; to give
general or special proxies or powers o.f attorney with or without
power of substitution; to exercise any conversion privileges,
subscription rights. or other options, and to make any payments
incidental thereto; to oppose, or to consent to. or otherwise
participate in, corporate reorganizations or other changes
affecting corporate securities. and to delegate discretionary
powers, and to pay any assessments or charges in connection
therewith; and generally to exercise any of the powers of an
owner with respect to stocks, bonds, securities or other property
held as part of the Trust Funds.
(d) To cause any securities or other property held as part of the
Trust Funds to be registered in its own name, and to hold any
investments in bearer form, but the books and records of the
Trustee shall at all times show that all such investments are apart
of the Trust Funds.
(e) To borrow or raise money for the purpose of the Trust in such
amount, and upon such terms and conditions, asthe Trustee Shall
deem advisable; and, for any sum so borrowed, to issue its
promissory note as Trustee. and to secure the repayment thereof
by pledging all, or any part, oftl:ie Trust FUnds. No personlending
money to the Trustee shall be bound to see the application of the
money lent or to inquire into its validity. expediency or propriety
of any such borrowing.
(f) To keep such portion of the Trust Funds in cash or cash
balances as the Trustee, from time to time, may deem to be in the
best .interest of the Trust created hereby, without liability for
interest thereon.
(g) TO accept and retain for such time as it may deem advisable
any securities or other property received or acquired by it as
Trustee hereunder, whether or not such securities or .other
property woutdnormally be purchased as investment hereunder.
(h) To make, execute, acknowledge, and deliver any and all
documents of transfer and conveyance and any and all other
instruments that may be necessary or appropriate to carry out the
powers herein granted.
.~
(I) To settle. compromise. or submit to arbitration any claims.
debts. or damages due or owing to or from the Trust Funds; to
commence or defend suits or legal or administrative proceedings;
and to represent the Trust Funds in all suits and legal and
administrative proceedings.
<il To do all such acts. take all such proceedings. and exercise all
such rights and privileges. although not specifically mentioned
herein, as the Trustee may deem necessary to administer the
Trust Funds and to carry out the purposes ofthis Trust.
section 2.3. Distributions from the Trust Funds. The Employer
hereby appoints. the. Trustee as its agent fqr the. purpose of making
distributions from the Trust Funds. In this regard the terms and
conditions set forth in the Plan are to guide and cqntrol the Trustee's
power.
Section 2.4. Valuation of Trust Funds. At least onC.e a year as .of
Valuation Dates designated by the Trustee. the Trustee shall determine
the value of the Trust Funds. Assetsofthe Trustfundsshall be valued at
their market values at the close of business onthe Valuation Date, or, in
the absence of readily ascertainable market values as the Trustee shall
determine. in accordance with methods consistently followed and
unifOrmly applied.
ARTICLE III. For Protection of Trustee.
Section 3.1. Evidence of Action by Employer. The Trustee may rely
upon any certificate. notice or direction purporting to have been signed
on behalf. of the Employer which the Trustee believes to have been
signedbyaduly designated ofticialofthe Employer.No communication
shall be binding upon any oUhe Trust Funds or Trustee until they are
received by the Trustee.
Section 3.2. Advice of Counsel. The Trustee may consult with any
legal counsel with respect to the construction of this Agreement. its
duties hereunder. or any act. which it proposes to take or omit, and shall
not be liable for any action taken or omitted in good faith pursuant to
such advice.
Section 3;3. MiscellaneoUs. The TfUstee shall use ordinary care and
reasonable dUigence, but shall nOt be liableforany mistake of judgment
or other action taken in good faith.The Trustee shall not be liable for any
loss sustained by the Trust Funds by reasons of any investment made i/1
good faith and in accordance with the provisions of this Agreement.
The Trustee's duties and obligations shall be limited to those
expressly imposed upon it by this Agreement.
ARTICLE IV. Taxes. Expertses al'ldCompensation of Trustee.
Section 4.1. Taxes. The Trustee shall deduct from and charge against
the Trust Funds any taxes on the Trust Funds or the income thereof or
which the Trusteeis required to pay with respect to the intereSt of any
person therein.
Section 4.2. Expenses. The Trustee shall deduct from and charge
againstthe Trust Funds all reasonable expensesincurred by the Trustee
in the administration oftheTrust Funds, including counsel, agency,
investment advisory. and other necessary fees.
ARTICl,.E V. Settlement otAccounts. The Trustee shall keep accurate
and detailed accounts of all investments, receipts. disbursements, and
other transactions hereunder.
Within ninety (90) days after the close of each fiscal year, the Trustee
shall render in duplicate to the Employer an account of its acts and
transactions as Trustee hereunder. If any part of the TrustFund shall be
invested through the medium Of any common. cOHective or commingled
Trust. Funds, the last annual repor.t of such Trust Funds shall be
submitted with and incorporated in the account.
If within ninety (90) days after the mailing of the account or any
amended account the Employer has not filed with the Trustee notice of
any objection to anY act or transaction of the Trustee, the account or
amended account shall become an account stated. If any objection has
been hied. and if the Employer is satisfied thatil should be withdrawn or
if the account is adjusted to the Employer's satisfaction, the Employer
shall in writlOgfiled With the Trustee signifY approval of the account and
it shall become an account stated.
~.
When an account becomes an account stated. such account shall be
finaily settled. and the Trustee shall be completely discharged and
released, as if such account had been settled and allowed by a judgment
or decree 01 a court of competentjurisdiction in an action or proceeding
in which the Trustee and the Employer were parties.
The Trustee shall have the right to apply at any lime to a court of
competent jurisdiction for the judicial settlement of its account.
ARTICLE VI. Resignation and . Removalot TnMee.
Section 6.1. Resignation of Trustee. The TrUSme may resign at any
time by filing with the Employer its written resignation. Such resignation
shall take effect sixty (60) days from the date of such filing and upon
appointment of a successor pursuant to Section 6.3.. whichever shall
first occur.
Section 6.2. Removal' of Trustee. The Emp!oyer may remove the
Trustee at any time by delivering to the Trustee awntten noticeotits
removal and .an appointment of a successor pursuant to Section 6.3.
Such removal shall not lake effect prior to sixty (60) days from such
delivery unless the Trustee agrees to an earlier effeCtive date.
Se.ction 6.3. Appointment of Successor Trustee.The appointment of .
a successor to the Trust,oo shall take effect upofl'thedeliverytO the
Trustee of (a) an instrument in writing exes~~1>>y the Employer
appointing such successor ,and exonerating/~'6Uccessor. from
liability for the acts and omissions of its pr~r,and (b.) an
acceptance in writing, executed by such successor.
All of the provisions set forth herein with respect.to the Trustee shall
relate to each successor with the same torce and effect as if such
successor had been originally named as Trustee hereunder.
If a successor is not appointed with sixty (60) dayS after theTrustee
gives notice of its resignation pursuant to. Section6.1., the Trustee may
apply to any court of competent jurisdiction for appointment ot a
successor.
Section 6.4. Transfer of Funds to successor. Upon the resignation or
removal of the Trustee and appointment ota sue<:essor,andafterthe
final account of the Trustee has been properlysettted. the Trustee shall
transfer and deliver any of the Trust Funds inVOlved to such successor.
ARTICLE VIt. Duration and Revocation of Trust Agreement.
Section 7.1. Duration and Revocation. This Trust shall continue for
such time as may be necessary to accomplish the purpose for which it
was created but may be terminated or revoked at anytime by the
Employer as it relates to any and/or all related participating Employees.
Written notice of such termination or revocation shall be given to the
Trustee by the Employer. Upon termination or revocation of the Trust,
all of the assets thereof shall return toancl fewrt to the Employer.
Termination of this Trust shall not. however. relieve the Employer of the
Employer'S continuing obligation to pay deferr.d compensation to
Employees in accordance with the terms ofthe Plan.
Section 7.2. Amendment. The EmployerShallhave the right to amend
this Agreement in whole and in part but only with the Trustee's written
consent. Any such amendment shall become effective upon (a) delivery
to the Trustee of a written instrument of amendment, and (b) the
endorsement by the Trustee on such instrument of its consentthereto..
ARTICLE VIII. MiscellaneouS.
Section 8.1. laws of the District ofGolumbia to Govern. This
Agreement and the Trust hereby crElated shall be construed and
re.gulated by the laws of the DistriCt of Columbia.
Section 8.2. Successor Employers. The "Employer" shall include any
person who succeeds the Employer and.who thereby becomes subject
to the obligations of the Employer under the Plan.
Section 8.3. Withdrawals. The Employer may, at anytime, and from
time to time, withdraw a portion or all of Trust Funds created by this
Agreement.
Section 8.4. Gender and Number. The masculine includes. the
fem inine and the singular includeS the plural unleSS the contextrequirtl$
another meaning.
2
.
(v) do aU such acts, take all such proceedings, and exercise all
such rights and privileges, although not specifically mentioned
herein, as the Trustees may deem necessary or appropriate to
administer the Trust Property andto 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 Employeriirl
accordance with the terms of the Deferred Compensation Plans or
Employer Trusts. The Trustees of the Retirement Trust shall be fully
protected in making payments in accordance with the directions of the
Public Employers or the Trustees of the Employer Trusts without
ascertaining whether such payments are in compliance with the
provisions of the Deferred Compensation Plans or the agreements
creating the Employer Trusts.
SECTION 4.3. Execution of Instruments. The Trustees may
unanimously designate anyone or more of the Trustees to execute any
instrument or document on behalf of all, inCluding but not limited to the
signing or endorsement of any check and the signing of any
applications, insurance and other contracts, and the action of such
designated Trustee or Trustees shall have the same force and effect as if
taken by all the Trustees.
ARTICLE V. Duty 01 Care and Liability of Trustees
SECTION 5.1. Duty of Care. In exercising the powers hereinbefore
granted to the Trustees, the Trustees shall perform all acts within their
authority for the exclusive purpose of providing benefits for the Public
Employers, and shall perform such acts with the care, skill, prudence
and diligence in the circumstances then prevailing that a prudent Person
acting in a like capacity and familiar with such matters would use inthe
conduct of an enterprise of a like character and with like aims.
SECTION 5,2. Liability. The TrustEleS shall not be liable for any
mistake of judgment or other action taken in good faith, and for any
action taken or omitted in reliance in good 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 by any of its
officers. employees or agents or by the Investment Adviser or any sub-
investment adviser, accountants. appraisers or other experts or
consultants 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 TrusteeshaU be Obligated to give any bond
or other security for the performance of any of his or her duties
hereunder.
ARTICLE VI. Annual Report to SharehOlders
The Trustees shall annually submit to the Public Employers a written
rePbrtof the transactions of the Retirement Trust, including financial
statements which shall be certified by indepeodentpublic accountants
chosen by the Trustees.
ARTICLE VII. Duration or Amendment of Retirement Trust
SECTION 7.1. Withdrawal..A Public Employer may, at anytime, with-
draw from this Retirement Trust by delivering to the Board of Trustees a
statement to that effect. The withdrawing Public Employer's beneficial
interest in the Retirement Trust shall be paid out to the Public Employer
or to the Trustee of the Employer Trust, as appropriate.
SECTION 7.2. Duration. The Retirement Trust shall continue until
terminated by the vote of a majority of the Public Employers, each
casting one vote. Upon termination, all of the Trust Property shan be
paid out to the Public Employers orthe Trustees oHM Employer Trusts,
as approprilite.
SECTION 7.3. Amendment. The Retirement Trust may be amended
by the vote of a majority of the Public Employers, 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 if: (a) a majority of the Trustees so direct, or (b) a
petition requesting a vote, signed by not less than 25% of the Public
Employers, is submitted to the Trustees.
ARTICLE VIII. Miscellaneous
SECTION 8.1. Governing Law. Except as otherwise required by state
or local law, this Declaration of Trust and the Betirement Trust hereby
created shan be construed and regulated by the laws of the District of
Columbia.
SECTION 8.2. Counterparts. This Declaration may be executed by
the Public Employers and Trustees in two or more counterparts, each of
which shall be deemed an original but all of which together shall
constitute one and the same instrument.
3
DECLARATION OF EXECUTION
I, Leonis C. Malburg, declare that I am now and was Mayor of
the City of Vernon on September 20, 19B3, when Resolution No.
5042 of the City Council of the City of Vernon was adopted. I
hereby execute the Trust Agreement with the ICMA Retirement
corporation which is attached to said Resolution as Appendix C
along with Appendix A, the Employer Deferred Compensation Plan
and Appendix B, the Declaration of Trust of ICMA Retirement
Trust.
Dated:
5/31/88
~/k~.
-- ONIS C. MALB RG, Ma or
ATTEST:
~/4~~
B UC V. MALKENHORST., City Clerk
APPROVE AS TO FORM:
~~~Ir>~
D ID B. BREARLEY, Cit Attorney
.-
APPENDIX B
DECLARATION OF TRUST
OF
leMA RETIREMENT TRUST
~I.NAMEANDDERN~S
SectIon 1.1 Name: The Name r:J the 1hJst, as amended and restated hereby.
is the leMA Retirement 'i'ust.
Section 1.2 Definition.: WherEl\l8l'they are used herein. the following temls
IhaIl have 1he following respective meanings:
(a) By-Laws. The By-Laws I8Ierred to in Section 4.1 hereof. as amended ftcm
time to time.
(b) Oelerred Compensation Plan A deferred Compensation plan esIablished
and maintained by a Public Employer for the purpose d providing retire-
ment income and other deferred benefits to its employees in accordance
with the provisions d section 457 d the Internal Revenue Code d 1954,
as amended.
(c) Employees. Those employees who participate in Qualified Plans.
(d) Empla,<er Trust. A trust created pursuant to an agreement between RC
and a Public Employer for the purpose d irwesting and administering the
funds 881 aside by such Employer in connection with its Deferred Compen-
sation agreements with its empic1,1les 01 in connection with its Qualified Plan.
(e) Guaranteed Irwestment Contract. A contract entered into by the Retire-
ment ltust with insurance companies that provides for a guaranteed rate
d retum on irwestments made pursuant to such contract.
(f) ICMA. The International City Management Association.
(g) ICMAIRC 'iustees. Those Trustees elected by 1he Public Emplo,<els who.
in accordance with the provisions d Section 3.1(a) hereof, are also mem-
bers d 1he Board d o.rectors d ICMA 01 RC.
(h) Investment Adviser. The Irwestment Adviser that enters into a contract
with the Retirement 'i'ust to provide advice with respect to irwestment d
the 'i'ust Property.
(i) Portfolios. The Portfolios d investments established by the Irwestment
Adviser to the Retirement Trust. under the supervision d the 'iustees, for
the purpose d providing irwestments lor the li'ust Ptgperty.
(i) Public Employee 1tuslees. Those 'Iuslees elected by 1he Public Emplo;els
who. in accordance with the provisions d Section 3.1(a) hereof. are full-time
ernpq.ees d Public Employers.
(Ie) Public ErnpIo;er 'iuslees. Public Employers who IBM as trustees d
.. 0uaIified Plans.
(I) Public ErnpIo;er. A unit d state 01 local gcMlffVl1ent. 01 any agency 01
inltrumentality thereoI, that has adopted a Deferred Compensation Plan 01
a Qualified Plan and has executed this Declaration d ltusl.
(m) Qualified Plan. A plan sponsored by a Public Employer lor 1he purpose
GI providing retirement income to its employees which aatislies the qualifi-
cation teQUiretnenls d Section 401 d the Internal Revenue Code. as
emctllded.
(n) RC. The International City Management Association Retirement Cor!>>
nllion.
(0) Retirement ltust. The ltust created by this Declaration d li'ust.
(P) Trust Property. The amounts held in the Retirement Trust on behalf d the Public
Employers in connection with Deferred CGmpensation Plans and on behalf d the
Public Employer Trustees for the elCCIusive benefit 01 Employees pursuant to Ouali-
fied Plans. The Trust Property shall include any income resulllng from 1he irwest-
ment d the amounts so held.
(q) lfustees. The Public Employee Trustees and ICMAlRC Trustees elected by the
Public Employers to serve as members d the Board d lfustees of the R8tirement
'i'ust.
ARTICLE II. CREATION AND PURPOSE OF THE TRUST; OWNERSHIP
OF TRUST PROPERTY
Section 2.1 CrNtIon: The Retirement ltust is created and established by
the execution d this Declaration d Trust by the Trustees and the Public
Employers.
Section 2.2 Purpoae: The purpose d the Retirement lrust is to provide for
the commingled investment d funds held by the Public Employers in connec-
tion with their Deferred Compensation and Oualified Plans. The Trust Prop.
erty shall be invested in the Portfolios. in Guaranteed Irwestment Contracts.
and in other irwestments recommended by the Irwestment Adviser under the
supervision r:J the Board r:J 'tustees. No part r:J the 'ius! Property will be ifMlSled
in securities issued by Public Employers.
SectIon 2.3 Ownership of hst Property: The Trustees shaH have legal
title to the Trust Property. The Public Employers shall be the beneficial orwners
d the portion d the Trust Property allocable to the Deferred Compensation
Plans The portion d the Trust Property allocable to the Oualified Plans shall
be held for the Public Employer Trustees for the elCCIusive benefit d the
Employees.
ARTICLE III. TRUSTEES
SectIon 3.1 Number and QuallflClltlon of Trust....
(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 persons who. at the time of
alec:tion to the Board 01 Trustees. are members of the Board of o.rectors of
ICMA and two persons who. at the time d election. are members of 1he Board
d Directors d RC (!he ICMAIRC Trustees). One d the Trustees who is a directOl
d ICMA, and one of the Trustees who is. director of RC. Ihall, at the time
d election. be full-time employees d a Public Employer.
(b) No person may serve as a Trustee for more than one term in any ten-year
period.
SectIon 3.2 ElectIon and 1erm.
(a) ElIC8pt tor the li'ustees appoinled to till \l8C8ncieS pursuant to Section 3.5
hereof, the 'iuslees shall be elected by a \IOte d a majority d 1he PubliC
Emplo;ers in accordance with the procedures let forth in the By-Laws.
It' .. . .
..(b}~- blil'C eIec:tion d '1uIlees. three hslees IhIII be elecad tar alaml
Cllhtae )'881'1. .... 'Iustees shall be 8lec:ted lot a term d two years ancIthree
'Iu:ilees 1haI; be 8lec:ted lot a term d one year. _ eech lUb8equent election.
.... ~UII8eS ItIaII be 8lec:ted tar a Iaml d three ~ and until hiI or her
.~ is aIecled ancI qualified.
SectIon '.S NomInations: The 'Iustees who are U-Iime empb,tees d Public
Employers II'llIII ..... . the Nominating Commiltee lot the Public E~
'IuII8e& n. NcrrinIfing CammIIee ~ cnoc.e canddlBes tar Pubk Empb"w
'Iusfees in accordance wiIh the procedures let Iar1h in the By.lJMs.
SectIon '.4 fInIgnatIon end RemcMI.
C8) Ant 'I\III8e may resign .. 'Iustee (wiIhout need tar prior or IUb8lIQuera
.x:ourting) ~ an inltrumenl in writing Signed ~ the 'iusIee and deli\l8led
to the CIIher 'IusI8es ancI such resigllllion shall be eIIecti~ upon such deli*)'.
or . alaler dale according to the terms d the instrument. Ar?I d the ftIIIeeS
may be ~ tar cause. by a vote d a majority d the Public: EmpIojets.
(b) Eactl Public Employee Wustee sh8Il resign hiI or her position . 'Iustee
wltin ~ _ d the date on which he or she C8IIlIllS to be a U-time empIo;IIe
d a Public ~
SectIon s.s v.c.ncIes: The term d office d 8 'Iustee shall terminate ancI
a YllCancy shall occur in the fN'8l1I d the death. resignation, remcMII. adjudi-
CIIled Incompetence or other incapacity to perform the duties d the office d
8 'Iustee. In the case d a YllCancy. the remaining li'ustees shall appoint such
person as they in !heir discretion lIhaIt see fit (sub!eCt to the limitations let lcrth
in this Section). to ..... lot the unexpired portion d the term d the 'iUIIlee
whO has resigned or Clherwise ceased to be a1i'uslee. The appoinlmenlllhall
be made by a wl'iIten instrument Signed ~ a majority d the 'iustees The per.
eon appointed must be the same type d 'iustee Q.e.. PubliC E~ 1fu&.
... or ICMAlRC 'iustee) as the person who has ceased to be a 1rustee. An
appointment d a hstee ITllI)' be made in anticipalion d a YlIC8ncy to occur
. 8 I8Ief date by reeson d retiremert or resignation. prtMded Ihal such appoi"
men! shall ncl become elfecti~ prior ID such retirement or resignation. When-
.,.r a YllCancy in the number d 'iusIees IhaII occur. u.-.il 8UCh YlIC8ncy is
liIIed as pttMCIed in Itlis Section :is. the li'ustees in ofIice. regarcfless d their
numbef. shall have all the powers granted to the li'usIees and shall disc:tlarge
.. the dulie& imposed upon the Trustees by this Declaration. A written instru-
ment certifying the existence d such vacancy Signed by a majority d the
'Iustees shall be conc:Iusi~ evidence d the existence d such YlIC8ncy.
Section '.I1tultHa Serve In Repre..ntatlve Capeclty: By executing
hs OecIarallon. eech PublIC EmpIc:J'f'er agrees Ihalthe PublIC Ernpo,.e 'iusIees
elec:lecl by the PubliC Employers are alJlhorized ID act as agents and represen-
IIIbIleS d the PubliC Employers callecbYely.
ARTICLE IV. POWERS OF TRUSTEES
SectIon 4.1 General Powe...: The li'ustees shall have the power to conduct
the business d the 'ius! and to C8lTY on iIs operaIions. Such po.ver lt1aII include.
bullhall nol be limited to. the power ID:
(a) recei~ the 'lust Property from the Public ~ PubliC Emplo,<er
"ius:Iees or other 'l'ustee d any Employer 'lust;
(b) enter ilt.o a contract with an If1\IllSlment Advi8er prcNiding. among other
Ihings. lot the establIshment and operation d the Portfolios. selection d the
Guaranl8ed Irwestment Contracts in which the 'iulIt Property ITllI)' be irwested,
8IIedion d other inweslmenIs fer the 'iust Ptcperty and !he paymert d reesona-
tile tees 10 the Irwestment AdviS8l' and to ar?l sub-irwestment adviser retained
~ the ItMllIImelt Adviser;
(c) ~ annuaIy the performance d the IrMlStmenl Adviaer and apptOYe
8MUlIIIy the contract with such IrwestmenI Adviaer;
(d) irMIa n rWMISl!he 'iust Property in the Portios. !he GuaranIEl8d I,..,...
Carncls n in q olher ilMSll'net1 reccrMl8l1ded by the IrM!lSlmenI Adviser.
bA naI irOudng -=uriIies issued by Pubk empo.,.rs. prtMded Ihal ifa Public
~ has difectecI that its monies be ilMllted in specified PortloIios or
in a Guaranteed IrMlSlment Comact. the 1Nstees d the Retirement'iust IhaI1
irMSt such monies in accordance with such directions;
(e) keep such portion d the 'iulIt Property in cash or cash belanc:es as the
"tuaIees. from time to time. may deem to be in the best irurest d !he Retire-
ment 'iulIt created hereby. without IiabiIily lot inlefesIlhereon;
(r) -=cepI ancI retain tar such time . they ITllI)' deem advisable any -=uti-
.. or olher pt'operty receiWld or acquired by them as 'l'ustees heteundet.
wh8Ihet or naI such MCUriIies or olher property .ouId normally be purchaed
.. ~ '*-under;
(g) c:aL*t 8ny I8CUriIieS or other propetty hek:I as pert d the 'iust Property
to be registered in !he name d the Retirement 'l'ust or in the name d a norni.
.... ancIlO hold any irwestmenlS in bearer form. but the booIlS and recordi
d the 'iustees IhaI1 at all timeS Ihow ttlIIt ell such if1\lllSlments are a pert d
the 'iulIt Prcpet1y;
(h) make. 8lC8CuIe. acknoNledge. ancI cWMtl' any ancI all documenIs d trans-
.. ancI corweyance and any ancI all olher instruments that ITllI)' be neceaary
or appropriate ID carry out the pc:IWefS herein gra'*ld;
(i) IIaIe upon any *X:k. bonds. or CIIher 1KUrilies, ~ genet8I or special prOlies
or powers d attorney with or withOUI power d subslrlution; exercise any c:l>>
version privileges. IUblcriplion rights. or ather options. and make ar?l ~
ments incidental thereto: oppose. or consent to. or otherwise participate in.
COtpOrate reorganizations or other changes effecting corporate 118Curilies, and
clelegate discretionary powers. and P8Y any assessmentS or charges in c:l>>
naction therewith; and generally exercise ar?l d the powers d an owner with
respecllD 1IcX:ks. bondS. MCUrilies or ather pt'operty held as part d the 1i"usl
Property;
(j) er<<er ilt.o contracts or arrangements fer goods or services required in c:l>>
naction with the operation d the Retirement1i"usl. including. but ncllamited
to. contracts with CUSlOdians and contracts lot the proIision d administrative
.w:es;
(k) borrow or raise money lot the purposes d the Retirement 'l'ust in such
amourt. and upon such Wrms and condiIionS. as the 'iustees lt1aII deem advis-
able. prOIIided thai the aggregate amount d such borrowings shall ncl8llC8ed
30% d the 181.18 ct the 'iust Ptcperty. No person lending money 10 the 'iustees
ahall be bound to see the application d the money lent or to inquire ilt.o its
wlidity. expediency or ptepriety d 8r?1 such borrowing;
(I) incur reasonable expenses as required tor the operation d the Retirement
'lust and cleduct such expenses from the '1tusI Property;
(m) pay expenses ptopef1y allocable to the 1i'ust Property incurred in connec.
tion with the Deferred Compensation Plans. Qualified Plans. 01 the Empl~r
'iusts and cleduct such expenses from that portion d the 1rust Property to
whom such expenses are properly allocable:
(n) pay out d the li'usl Property all real and personal property taxes. income
taxes and other taxes d any and all kinds which, in the opinion d the 'iustees.
... properly 1eYied, or assessed undef existing or fuIure laws upon. or in l1ISPect
ct. the Trust Property and aItocale any such taxes ID the appropriate accounts:
(0) adopt. amend ancI repeal the By-Laws. proIided thai such By-L.ews are
at all timeS consistent with the terms d this Declaration d 1rust:
(P) employ persons to make available inlereSlS in the Retirement 'lust to
employers eligible to maintain a Deferred Compensation Plan under Section
457 or a Qualified Plan under Section 401 d the Irternal R.....nue Code. as
amended;
(Q) iasue the Annual Report d the Retirement Trust, and the disclosure docu-
ments and other Iilerature used ~ the Retirement 1fust;
(I) make loans. including the purchase d debt obligations. prcMded that all
auc:h loans llhaIl bear iruresl at the current market rate:
(a) contract lot, and delegate ar?l powers grarted hereundet to. IUCh Qlficers.
agerG. empIo,<ees. auditors and ~ as the 'iustees may 1IeIect. pttMded
Ihalthe l'USIees may ncl delegate the powers letlcrth in paragraphs (b). (c)
ancI (0) d this Section ..1 and ITllI)' no! delegate ar?l powers if IUCh deIega'
tion would violate their fiduciary dutieS:
(t) pttMde lot the indemrification d the dficets and 'tustees d the Retiremert
'lust ancI purchase fiduciary iMnnce;
(u) maintain booIlS and records. including eepat1Ile accounts lot each PubliC
Employer. PublIC E~r '1'ustee or Emplojer 'ius! and such additIonal .PO
arate accounts as are required undet. and consistenl with, the Oelerrad Com-
petUtion or Qualified Plan d each Public EmpIo;er: and
(v) do all such acts. take all such proceedings. and exercise aIllUCh rights
n prMeges. aIlhough ncllPlCific:ally merfionIld herein, as the 'iuIIees may
deem necessary or appropriate to admil'llSlef the 'ius! Property and to carry
OUlthe putpOMS d the Retirement 'lust.
l
~ 4.1 DIstrtbutIon of 1hm Property: Distributions d!he 'lust Prop.
~,shin be made >>. or on behalf d, !he Public EmplCJlt8l' or Public E~
.. 1Uue. .;1 accordance with !he l8tms d!he Deferred Compensation Plana.
0u8lified Plans or E~"iusIs. The 'IusIees d!he Retirement hit ItllIII
be July pratected in making P8)'I'll8l'IIS in accordance with !he dil1lClionl d
tle PI.tic ~ Public E/npIorJer 'iusIees or aIher 1ustee d!he E/npIorJer
'iusIs wIItlout I8Cert8ining whether SUCh paymenIs are in eompIiance with !he
pnMsionI d ltle Oeterred CompellSilliot I or 0uIIIiIiecl Plan&. or !he ag,.".,.
cnNIIing the EmpIo,<er "iusIs.
SectIon .03 execution of Instrumenta: The 'Iuslees may unanimoully
de8ignIde any one or more d the 1i'ustees to 8ll8CUte any instrument or dc:lc>>
menI on behalf d II. including but net Iimit8d to !he signing or encIolsemenI
d any check and !he signing d any applications, insurance and other con-
trIIcts, and !he action d such designated hslee or 'iustees IhaII have !he
ume bee and effect as if taken by all !he 'iustees.
ARTICLE V. DUTY OF CARE AND LIABILITY OF TRUSTEES
Section 5.1 Duty of Ca..: In exercising the powers hereinbefore granted to
the hltees. the lrustees shall perform all ac1s within their authority for the
8llCIUM purpose d providing benefits for the Public Employers in connec-
tion with Deferred Compensation Plans and Public Emplo')'er 1rustees pursuant
to Oualified Plans. and shall perform SUCh ac1s with the care. skill. prudence
and diligence in the circumstances then prevailing that a prudent person act-
ing in a tike capacity and familiar with such matters would use in the conduct
d an enterprise d a tike character and with like aims.
SectIon 5.2 u.bIllty: The lrustees shall not be liable for any mistake d judg-
ment or ather action taken in good faith. and for any action taken or omitted
in reliance in good faith upon the books d account or ather records d !he
Retirement Trust. upon the opinion d counsel. or upon reports made to the
Retirement 'iust by any d its officers. emploo;ees or agents or by the 11'l\I8st-
ment Adviser or any sub-investment adviser. accountants, appraisers or other
8Kpel1S or consultants selected with reasonable care by the Trustees. officers
or employees 01 the Retirement 'iust. The Trustees shall also not be liable for
any loss sustained by the Trust Property by reason 01 any investment made
in good faith and in accordance with the standard 01 care 9lll fotth in Section 5.1.
Section 5.3 Bond: No lrustee shall be obligated to give any bond or ather
8ElCurity for the performance 01 any d his or her duties hereunder.
ARTICLE VI. ANNUAL REPORT 1'0 SHAREHOLDERS
The 'iustees shall annually IUbmit to !he Public Employers and Public Ernpb;er
'iustees a wriIIen report d !he transactions d.ltle Reliremett 'lust. including finan..
Ci8I statements.which Ih8u be certified by independert public accountants cho-
." by the 'iuItees.
ARTICLE VII. DURATION OR AMENDMENT OF RETIREMENT TRUST
SectIon 7.1 Wtthd......: A PubIie Empb,<er or Public ErnpIo,'er 'iustee may.
. any time. withdnIw from this Retirement hsl by delivering to the Board d
'lustees a written IIaIemenl d withdrawal. In SUCh 1Itatemenl. !he Public
Empqer or Public Empqer 'iusIee 8h8IlllCknowledge thai !he 'lust Prop.
erty allocable to the Public Empbjer is derived from compensation deferred
by emplO/8eS d SUCh PublIC Employer putIUanl.to its Deferred Compensa-
tion Plan or from contributions to !he accounts d EmplO/8eS PUrsuant to a
0uaIified Plan. and 8halI designate the financial institution to which such property
shall be transferred by the li'ustees d the Retirement 'iust or by the 'iustee
d the Empqer 'iust.
SectIon 7.2 Durdlon: The Retirement 1i'ust shall continue until terminated
by the \IOle d a majority d the Public EmploJers, each casting one vme Upon
termination. all 01 the li'ust Property shall be paid out to the Public Employers,
Public Emplo')'er 'iusIees or the 'iusIees d the Emplo')'er TNsts. as appropriate.
SectIon 7.3 Amendment: The Retirement 'iust may be amended by the \IOle
d a majority 01 the Public Employers, each casting one \ICte.
SecUon 7.. Procedu..: A resolution to terminate or amend the Retirement
'ius! or to rem<M! a Trustee shall be submitted to a \/Ole 01 the Public EmplO'1ers
if: (i) a majority d the lrustees so direct, or; (ii) a petition requesting a YOle.
signed by not less than 25% d the Public Employers, is submitted to the
'Iustees.
ARTICLE Viti. MISCELLANEOUS
Section 1.1 Govemlng LIw: EllC8pt as otherwise required by state or local
law. this Declaration oIli'ust and the Retirement Trust hereby created shall be
construed and regulated by the laws d the District d Columbia.
SectIon 1.2 Counterperta: This Declaration may be executed by the Public
Employers and Trustees in two or more counterparts, each d which shall be
deemed an original but all d which together shall constitute one and the same
instrument.
TELEPHONES
OFFICERS
CITY COUNCIL
LEONIS C. MALBURG, Mayor
THOMAS A YBARRA, Mayor Pro.Tem
Wm. "BILL" DAVIS
H. "LARRY" GONZALES
W. MICHAEL McCORMICK
BRUCE V. MALKENHORST.
City Administrator/City Clerk
DAVID B. BREARLEY,
City Attorney
VICTOR H. VAITS,
Director of Community Services
CITY CLERK..............................583--8811
POLICE DEPT. ..........................587-5171
FIRE DEPT. ................................583--4821
BUILDING DEPT......................583--8811
PUBLIC WORKS DEPT. ..........583--8811
HEALTH DEPT. ........................583--8811
LEWIS R. ADAMS,
Director of Water & Power
GEORGE F. BASS,
Fire Chief
CITY HALL
AL ESPINOZA
Police Chief
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
In Reply Refer to:
May 27, 1988
Ms. Gloria Orosco
Deputy City Clerk
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Dear Gloria:
The ICMA Retirement Corporation wrote to Martha Garcia
on March 22, 1988, requesting that Vernon approve the ICMA
Retirement Trust. The City of Vernon officially adopted the ICMA
Retirement Trust by Resolution No. 5042 on September 20 I 1983.
The ICMA has been apprised of that, but has requested a copy of
the resolution with its attachments.
The resolution requires that the trust agreement be ex-
ecuted by the Mayor. Please have the Mayor execute the attached
Declaration for Appendices A, Band C to Resolution No. 5042.
Then send a copy of the resolution with the Appendices and Decla-
ration to the ICMA, attention Harriett Jacobs, Western Regional
Manager.
Very truly yours,
~~I~~
David B. Brearley
City Attorney
DBB:klc
. or
SUGGESTED RESOLUTION FOR A LEGISLATIVE BODY
RELATING 10 A DEFERRED COMPENSATION PLAN
..
RESOLUTION OF
("Employer').
WHEREAS. the Employer has employees rendering valuable services; and
WHEREAS, the establishment of a deferred compensation plan for such employees serves the interests of the Employer
by enabling it to provide reasonable retirement security for its employees, by providing increased flexibility in its
personnel management system, and by assisting in the attraction and retention of competent personnel; and
WHEREAS, the Employer has determined that the establishment of a deferred compensation plan to be administered
by the ICMA Retirement Corporation serves the above objectives; and
WHEREAS, the Employer desires that the investment of funds held under its deferred compensation plan be
administered by the ICMA Retirement Corporation, and that such funds be held by the ICMA Retirement Trust,
a trust established by public employers for the collective investment of funds held under their deferred compensa-
tion plans and money purchase retirement plans;
NOW THEREFORE BE IT RESOLVED that the Employer, unless it has already done so, hereby adopts the deferred
compensation plan attached hereto as: (check one only if Employer is hereby adopting a plan)
(1) Appendix A [ ] or
(2) The plan provided by the [ ]
Employer which is attached hereto
and the Trust Agreement with the
ICMA Retirement Corporation
(Appendix C)
and appoints the ICMA Retirement Corporation to serve as Administrator thereunder; and
BE IT FURTHER RESOLVED that the Employer hereby executes the Declaration of Trust of the leMA Retirement
Trust, attached hereto as Appendix B.
BE IT FURTHER RESOLVED that the (use title of official, not name)
shall be the coordinator for this program and shall receive necessary reports, notices, etc. from the ICMA Retire-
ment Corporation or the ICMA Retirement Trust, and shall cast, on behalf of the Employer, any required votes under
the program. Administrative duties to carry out the plan may be assigned to the appropriate departments.
I,
of
(Council Member, Trustee, etc.) of
in the (Council, Board, etc.) of the (City, County, etc.) of
at a regular meeting thereof assembled this
, Clerk of the (City, County, etc.)
, do hereby certify that the foregoing resolution, proposed by
was duly passed and adopted
day of
, 19_, by the following vote:
AYES:
NAYS:
ABSENT:
(SEAL)
Clerk of the (City, County, etc.)
..
..
ICMA
RETIREMENT
CORPORATION
1800 Harrison Street (415) 836-4527
Suite 1661 Toll Free (800) 424-9249
Oakland, Ca. 94612
March 22, 1988
Martha Garcia
Finance Director
City of Vernon
4305 Santa Fe Ave.
Vernon, CA 90058
Dear Ms. Garcia:
I am writing to you to ask your assistance in arranging for
adoption of the ICMA Retirement Trust via the enclosed resolution
at your earliest opportunity. While implementation of the Trust
signals no material changes in the manner in which our program is
administered, you should understand that participation does
present some advantages.
By executing the relationship described in the resolution, the
City will participate in an organizational structure designed to
give the public employers in the plan ultimate control over the
management of the funds. Each public employer will have the
opportunity to nominate and vote for a group of nine Trustees who
have the power to conduct the business of the Trust and carryon
it's operations. The nomination and election process, therefore,
gives the participating employers a direct relationship with
these functions which include oversight of the Retirement
Corporation's performance, appointment of the auditors, and
monitoring investment goals and objectives.
When this trust arrangement was introduced in 1983, we indicated
that employers could continue to participate in the RC plan
during a transitional period without adopting the Trust. It was
anticipated that a transitional period would be necessary in
order to allow time for all then-participating employers to
process the necessary resolution through their governing body in
order to become a member of the Trust. That period will come to
a close next year, however, and if an employer is not a member of
the Trust we no longer will be able to hold their assets in the
Trust.
Home Office: 1120 G Street. NW., Suite 700. Washington, D.C. 20005 800-424-9249.
~
The ICMA Retirement Corporation is the administrator of retirement plans for state and local government under the sponsorship of: Inter-
national City Management Association. Government Finance Officers Association. National Institute of Municipal Law Officers.
National League of Cities. American Society for Public Administration. American Planning Association. American Public Works
Association. American Public Power Association. Building Officials and Code Administrators International. American Association
of Airport Executives. tnternational tnstltute of Municipal Clerks. American Public Gas Association. International Association of
Assessing Officers. American Public Transit Association. American Institute of Certitied Planners. International Association of
Fire Chiefs
. .
~
. -
March 22, 1988
Page two
We are therefore contacting those few rema~n~ng employers who
have not yet adopted the Trust and urging them to do so at an
early opportunity. We want to ensure you have adequate time to
handle this matter. Please feel free to contact any of the
Western Region staff at either 415/836-4527 or 1-800-424-9249 if
you have any questions or concerns.
Manager
HJ/gkh