Resolution No. 56711
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RESOLUTION NO. 5671
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF VERNON AMENDING THE CITY OF VERNON
DEFERRED COMPENSATION PLAN AND REPEALING
RESOLUTION NO. 5643
WHEREAS, the City of Vernon (also referred to as
"Employer ") maintains a deferred compensation plan for its
employees which has been administered by the ICMA Retirement
Corporation; and
WHEREAS, the Internal Revenue Service has issued a
private letter ruling approving said plan document as complying
with Section 457 of the Internal Revenue Code; and
WHEREAS, the City of Vernon has entered into a contract
with Great -West Life and Annuity Insurance Company ("Great -
West), which permits Great -West to provide and administer
alternative investment opportunities for participants in the
City's deferred compensation plan; and
WHEREAS, the City Council of the City of Vernon adopted
Resolution No. 5643 on August 8, 1989, which amended the City of
Vernon deferred compensation plan to permit Great -West Life and
Annuity Insurance Company ( "Great- West ") to provide and
administer alternative investment opportunities for participants
in the City's deferred compensation plan; and
WHEREAS, Resolution No. 5643 authorized the Mayor to
execute documents on behalf of the City of Vernon respecting the
contract with Great -West marked as Exhibits A and B; and
WHEREAS, Great -West has indicated that the document
marked Exhibit "B" needs to be revised to reflect that Great -
West (i) is not agreeing to accept the obligations of the Plan
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as part of their Annuity Contract No. 98270GP but is agreeing to
conform to the terms and conditions of the City's deferred
compensation plan and (ii) will agree to administer the annuity
contract pursuant to the City's instructions.
WHEREAS, the Employer receives benefits under said plan
by being able to assure reasonable retirement security to said
employees by being more able to attract competent personnel to
its service, and by increasing its flexibility in personnel
management.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
SECTION 1: That the Employer hereby amends the
deferred compensation plan by providing that the ICMA Retirement
Corporation and Great -West are eligible investment programs for
the employees of the City of Vernon.
SECTION 2: That the execution by the City
Administrator of the Group Deferred Compensation Annuity
Contract with Great -West is hereby ratified.
SECTION 3: That the Mayor is hereby authorized to
execute the documents on behalf of the Employer, copies of
said documents (Exhibits A and B) have been presented to the
City Council concurrently with this Resolution, and the City
Council hereby orders said documents to be received and filed by
the City Clerk.
SECTION 4: That the City Administrator shall be the
coordinator for these programs and shall receive necessary
reports, notices, etc. from the ICMA Retirement Corporation and
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Great -West and shall cast, on behalf of the Employer, any
required votes under the programs. Administrative duties to
carry out the plan may be assigned to the appropriate
departments.
SECTION 5: That Resolution No. 5643 is hereby
repealed.
SECTION 6: The City Clerk of the City of Vernon shall
certify to the passage of this resolution and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 5th day of September, 1989.
ATTE
BRUCE V. MALKENHORST, City Clerk
-3-
LEONIS C. MALE G, May
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STATE OF CALIFORNIA )
)ss.
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution,
being Resolution No 5671, was duly adopted by the City
Council of the City of Vernon at a regular meeting of the
City Council duly held on Tuesday, September 5, 1989 and
thereafter duly signed by the Mayor of the City of Vernon.
(SEAL)
BRUCE V. MALKENHORST, City Clerk
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RESOLUTION NO. 8545
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF
AN AMENDMENT TO THE ADMINISTRATIVE SERVICES
AGREEMENT FOR PLAN NUMBER 301376 AND 109759 BY AND
BETWEEN THE' CITY OF VERNON AND ICMA RETIREMENT
CORPORATION
8 WHEREAS, on November 16, 1982, the City Council of the City
9 of Vernon adopted Resolution No. 4955 approving a Deferred
10 Compensation Plan (the "Plan ") with the International City Management
11 Association ( "ICMA ") Retirement Corporation to provide retirement
12 income and other deferred benefits to employees; and
.13 WHEREAS, on September 20, 1983, the City Council of the City
14 of Vernon adopted Resolution No. 5042 approving amendments to the
15 Plan, authorizing the execution of the ICMA Retirement Trust and
16 appointing the City Administrator to be the coordinator of the program
17 on behalf of the City of Vernon; and
18 WHEREAS, on November 23, 1993, the City Council of the City
19 of Vernon adopted Resolution No 6357 approving an Administrative
20 Services Agreement with the ICMA Retirement Corporation respecting
21 Plan Number 301376; and
22 .WHEREAS, on December 15, 1998, the City Council of the City
23 of Vernon adopted Resolution No 7254 adopting a Money Purchase
24 Retirement Plan and Trust - (Number 109759) to be administered by the
25 ICMA Retirement Corporation and funds held under such Plan invested in
26 the ICMA Retirement Trust, a trust established by public employers for
27 the collective investment of funds held under their retirement and
28 deferred compensation plans; and
1 WHEREAS, on September 5, 1989, the City Council of the City
2 of Vernon adopted Resolution No 5671 approving an agreement with
3 Great -West Life and Annuity Insurance Company ( "Great- West ") to provide
4 and administer alternative investment opportunities for participants in
5 the City's Plan; and
6 WHEREAS, on October 20, 1992, the City Council of the City of
7 Vernon adopted Resolution No 6177 approving an Administrative and
8 Communications Services Agreement with Great -West and its subsidiary,
9 Benefits Corp Equities, Inc.; and
10 WHEREAS, the ICMA Retirement Corporation has offered to
11 gradually eliminate fees under its agreements contingent upon being an
12 exclusive provider of administrative and investment services under the
13 Plan; and
14 WHEREAS, on October 6, 2004, the Finance Committee considered
15 the recommendation of Bruce V. Malkenhorst, Director of Finance, dated
16 September 28, 2004, that an amendment to the Administrative Services
17 Agreement with ICMA Retirement Corporation be approved and executed;
18 and
19 WHEREAS, the City Council of the City of Vernon has
20 determined that, pursuant to the provisions of subsection (a) of
21 Section 2.27 of the Vernon City Code, it is in the public interest and
22 necessity to enter into a new agreement with ICMA Retirement
23 Corporation.
24 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
25 CITY OF VERNON AS FOLLOWS:
26 SECTION 1: The City Council of the City of Vernon hereby
27 finds and determines that the recitals contained hereinabove are true
28 and correct.
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SECTION 2: The City Council of the City of Vernon hereby
approves the Amendment to the Administrative Services Agreement for
Plan Number 301376 and 109759 with ICMA Retirement Corporation, a copy
of which is attached hereto as Exhibit A and incorporated by
reference.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the Mayor and the City Clerk to execute said Amendment for,
and on behalf of, the City of Vernon.
SECTION 4: The City Council of the City of Vernon hereby
authorizes the City Administrator, or his designee, to execute any and
all documents necessary to implement and carry out the purposes
specified in the Amendment, for, and on behalf of, the City of Vernon.
SECTION 5: The City Council of the City of Vernon hereby
directs the City Clerk, or his designee, to send one fully executed
Amendment to:
ICMA Retirement Corporation
Attn. San Diep, New Business Analyst
777 N. Capitol Street, NE
Washington, DC 20002 -4240
SECTION 6: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 6th day of October, 2004.
ATTEST:
BRUCE V. MALKENHORST, City Clerk
EONIS C. MALB
G, Mayo
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STATE OF CALIFORNIA )
ss
COUNTY OF LOS ANGELES )
I, BRUCE V, MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
8545, was duly adopted by the City Council of the City of Vernon at a
regular meeting of the City Council duly held on Wednesday,
September 15, 2004, and thereafter was duly signed by the Mayor of the
City of Vernon.
(SEAL).
BRUCE V. MALKENHORST, City Clerk
- 4 -
EXHIBIT
A
AMENDMENT
TO THE
Administrative Services Agreement
for Plan Number 301376 and 109759
This Amendment to the Administrative Services Agreements. ( "Agreements ") for Plan numbers 301376 and
109759 (the "Plans ") is entered by and between City of Vernon ( "Employer ") and ICMA Retirement
Corporation ( "RC "), effective as of the date of execution by the Employer below ( "Execution Date ").
WHEREAS, the Employer sponsors the Plans on behalf of its eligible employees and retirees; and
WHEREAS, the Employer entered the Agreements to engage RC to provide administrative services and
investments for the Plans under the terms specified in the Agreements; and
WHEREAS, the parties wish to amend the Agreements to provide for an annual reduction in the Plan
Administration fee paid under the Agreements and elimination of the Mutual Funds Fee under the Agreements
contingent upon RC acting as the exclusive provider of administrative and investment services for the Plan over
the term of the Agreements and contingent on the Employer's use of EZLink for enrollment and contribution
processing over the term of the Agreements; and
WHEREAS, Section 10(a) of the Agreements provide that the Agreements may be amended pursuant to a
written instrument signed by the parties;
NOW, THEREFORE, the Agreements are hereby amended as follows:
FIRST
The following is added as a new section 3 to the Agreements, and the current provisions of the
Agreements are re- numbered accordingly:
Employer agrees that for the initial or succeeding term of this Agreement specified in Section 10,
so long as RC continues to perform in all material respects the services to be performed by it
under this Agreement, Employer shall not obtain plan administration and investment advisory
services from anyone other than RC. Employer acknowledges that RC has agreed to the
compensation to be paid to RC under this Agreement in the expectation that RC will be able to
offset costs allocable to performing this Agreement with revenues arising from Employer's
exclusive use of RC at the rates provided herein throughout the initial or succeeding .term.
SECOND
Re- numbered section 7 of the Agreements, titled "Compensation and Payment" is amended by replacing
subsections (a) and (d) with the following:
(a) Plan Administration Fee. The amount to be paid for plan administration services under this
Agreement shall be: (i) For the first year of this Agreement, 0.29% per annum of the amount
of Plan assets invested in the Trust; and (u) For years two through five of this Agreement.
0.00% per annum of the amount of Plan assets invested in the Trust.
Such fee shall be computed based on average daily net Plan assets in the Trust.
(d) Mutual Fund Services Fee. There is an annual charge of 0.0% assessed against average daily
net Plan assets invested in the Trust's Mutual Fund Series.
The compensation and payment set forth in this section 7 is contingent upon Employer's continued use
of EZLink for enrollment and contribution processing over the term of this Agreement.
TUIRD
Re- numbered section 10 of the Agreements, titled "Term" is amended to provide as follows:
This Agreement shall be in effect for an initial term beginning on the Execution Date and ending
5 years after the Execution Date. This Agreement will be renewed automatically for two one
year terms and each succeeding year unless written notice of termination is provided by either
party to the other no less than 60 days before the end of such Agreement year.
The fee amendment specified in section 7 of the Agreements will take effect in the calendar
quarter following the Retirement Corporation's receipt of one fully - executed copy of this
Amendment based upon the following schedule:
Received by February 20:
Received by May 20:
Received by August 20:
Received by November 20:
Effective April
Effective July
Effective October
Effective January
In all other respects, the Agreements are hereby ratified and affirmed.
IN WITNESS WHEREOF, Employer has caused this Amendment to be executed by its duly authorized officer
this day of , 2004.
CITY OF VERNON
By
Print Name:
Title:
ICMA RETIREMENT CORPORATION
by:
Paul Gallagher
Corporate Secretary
SECTION F
This Agreement is effective December 1, 1988, and will remain in full force and effect until
terminated as follows:
1. Automatically upon the date the FutureFunds contract, as amended, or a successor
contract, is no longer currently being offered to eligible employees under the Plan;
to
Upon cancellation by any party upon 90 days prior written notice by Certified Mail
to the addresses herein.
3. The expense level described in Schedule A is in effect as long as the Great -West Life
& Annuity Insurance Company is acting in its current capacity as the investment
option provider for the Policyholder's plan, and there are not substantial c. hanges in
the operation of the Policyholder's plan, including by not limited to a change in
approved investment option providers, marketers of required administrative services,
This agreement may be modified at any time upon mutual consent of both parties.
City of Vernon
'Leonis C. Malburg I
Title Mayor
Date ..7 . ,
Address: Santa Fe Avenue
Vernon, A 8
ATTEST: / , /�� . ,...!
Bruce V. Ma1kenhorst
City Clerk
APPROVED AS TO FORM:
bay xd 8. Brearley, Cit Attorney
The Circat -West Life Assura(Company
By:
Tide
Date .131/R:1
Address: 8505 East Orchard Road
Englewood, Colorado 80111
I3enefitsCorp Equities, Inc.
Title
Date 1:1.4 -92.
Address: 8505 East Orchard Road
Englewood, Colorado 80111
SUPPORTING
DOCUMENTS
AMENDMENT
TO THE
Administrative Services Agreement
for Plan Number 301376 and 109759
This Amendment to the Administrative Services Agreements ( "Agreements ") for Plan numbers 301376 and
109759 (the "Plans ") is entered by and between City of Vernon ( "Employer ") and ICMA Retirement
Corporation ( "RC "), effective as of the date of execution by the Employer below ( "Execution Date ").
WHEREAS, the Employer sponsors the Plans on behalf of its eligible employees and retirees; and
WHEREAS, the Employer entered the Agreements to engage RC to provide administrative services and
investments for the Plans under the terms specified in the Agreements; and
WHEREAS, the parties wish to amend the Agreements to provide for an annual reduction in the Plan
Administration fee paid under the Agreements and elimination of the Mutual Funds Fee under the Agreements
contingent upon RC acting as the exclusive provider of administrative and investment services for the Plan over
the term of the Agreements and contingent on the Employer's use of EZLink for enrollment and contribution
processing over the term of the Agreements; and
WHEREAS, Section 10(a) of the Agreements provide that the Agreements maybe amended pursuant to a
written instrument signed by the parties;
NOW, THEREFORE, the Agreements are hereby amended as follows:
FIRST
The following is added as a new section 3 to the Agreements, and the current provisions of the
Agreements are re- numbered accordingly:
Employer agrees that for the initial or succeeding term of this Agreement specified in Section 10,
so long as RC continues to perform in all material respects the services to be performed by it
under this Agreement, Employer shall not obtain plan administration and investment advisory
services from anyone other than RC. Employer acknowledges that RC has agreed to the .
compensation to be paid to RC under this Agreement in the expectation that RC will be able to
offset costs allocable to performing this Agreement with revenues arising from Employer's
exclusive use of RC at the rates provided herein throughout the initial or succeeding term.
SECOND
Re- numbered section 7 of the Agreements, titled "Compensation and Payment" is amended by replacing
subsections (a) and (d) with the following:
(a) Plan Administration Fee. The .amount to be paid for plan administration services under this
Agreement shall be: (i) For the first year of this Agreement, 0.29% per annum of the amount
of' Plan assets invested in the Trust; and (ii) For years two through five of this Agreement.
0.00% per annum of the amount of Plan assets invested in the Trust.
Such fee shall be computed based on average daily net Plan assets in the Trust.
(d) Mutual Fund Services. Fee. There is an annual charge of 0.0% assessed against average daily
net Plan assets invested in the Trust's Mutual Fund Series.
The compensation and payment set forth in this section 7 is contingent upon Employer's continued use
of EZLinlc for enrollment and contribution processing over the term of this Agreement.
THIRD
Re- numbered section 10 of the Agreements, titled "Term" is amended to provide as follows:
This Agreement shall be in effect for an initial term beginning on the Execution Date and ending
5 years after the Execution Date. This Agreement will be renewed automatically for two one
year terms and each succeeding year unless written notice of termination is provided by either
party to the other no less than 60 days before the end of such Agreement year
The fee amendment specified in section 7 of the Agreements will take effect in the calendar
quarter following the Retirement Corporation's receipt of one fully- executed copy of this
Amendment based upon the following schedule:
- Received by February 20:
Received by May 20:
Received by August 20:
Received by November 20:
Effective April
Effective July
Effective October
Effective January
In all other respects, the Agreements are hereby ratified and affirmed.
IN WITNESS WHEREOF, Employer has caused this Amendment to be executed by its duly authorized officer
this 1 ol14' day of Idther, 2004.
CITY OF VERNON
By:
Print ame: LeohdsWCC1Malburg
Title: Mayor
ICMA RETIREMENT CORPORATION
by:
Paul Gallagher
Corporate Secretary
Attest :
Bruce V. Malkenhorst
City Clerk
Approved As. to Form:
Eric res h, City Attorney
SUPPORTING
DOCUMENTS
City of Vernon
Section 457 Deferred Compensation Plan
November 7, 2003
Presented by
The ICMA Retirement Corporation
Shawn Baker
Retirement Plans Specialist
Tel: (310) 379 -2773
Fax: (310) 379 -7703
Email: sbaker @icmarc.org
Corporate Headquarters
777 North Capitol Street, NE
Suite 600
Washington, DC 20002 -4240
The City of Vernon, California
Section 457 Deferred Compensation Plan
Table of Contents
Executive Summary 1
Reduced Fees 3
Employee Education 6
Value -Added Service 10
Technological Services 16
Quality Investments 22
Commitment to the Public Sector 30
I C M A RETIREMENT C O R P O R A T I O N
The City of Vernon, California
Section 457 Deferred Compensation Plan
Executive Summary
The ICMA Retirement Corporation:
A Dedicated Partner for You and Your Employees
As one of the City of Vernon's retirement plan providers, the ICMA Retirement Corporation (RC)
welcomes this opportunity to describe the advantages of selecting us as your exclusive provider
of 457 plan educational, administrative, and investment management services.
RC is the only firm in the nation dedicated to serving the public sector exclusively, and we
stand alone in our singular focus on meeting the retirement needs of public sector employees.
Highlights of how we can add value to the City's program are summarized below:
Need
Reduced Fees: The City
can greatly reduce the
cost of participation in
the plan.
•
•
Solution
RC will implement a fee reduction program to eliminate the plan
administration fee In the fourth year of our relationship as sole provider for
your program.
Our proposed fee reduction will provide significant value to your plan.
Based on current assets served and the $1 million that will be transferred to
our service, the reduction and eventual elimination of our plan
administration fee will save the City more than $300,000 over the next five
years.
Employee Education:
•
On -site educational seminars and individual consultations by a salaried
The value of your
representative who currently serves the City.
program is maximized
•
Communication materials designed specifically for public sector employees.
when participants are
•
Website focused on enhancing participant knowledge; includes interactive
fully knowledgeable on
how to use the plan.
tutorials with streaming video.
Value Added Service:
•
RC is a "one-stop-shop" provider of comprehensive services.
RC is committed to
•
Participant payout options are the most flexible allowed by law.
providing the City with
•
Access to a comprehensive range of mutual funds that are selected and
the best possible service.
monitored by a team of experienced investment professionals.
•
Legal and regulatory changes, as well as new Federal legislative
developments, are communicated in the Employer Bulletin and through
our VantageLink website.
Technological
•
Personal available toll -free from NASD registered Investor Services
Services: RC maintains
Representatives.
a leading -edge suite of
•
State -of- the -art Internet and voice response transaction and information
services for the City's
delivery systems.
plan.
•
Web -based VantageView account aggregation service.
•
Independent investment advice from Morningstar Advice Online* for
those wishing additional guidance in designing portfolio.
Quality Investments:
•
Eight investment options actively managed by multiple subadvisers where
I C M A R E T I R E M E N T C O R P O R A T I O N
The City of Vernon, California
Section 457 Deferred Compensation Plan
Need
Solution
Executive Summary
The City can offer its 457 appropriate.
plan participants a full • Five passively managed index funds.
range of investment
• Five lifestyle model portfolios covering a broad risk - return spectrum.
options designed
specifically for retirement • Access to a number of brand name mutual funds.
investment.
Commitment to the
Public Sector: As a
governmental entity, the
City wants a provider
with a proven
commitment to public
employees.
• RC is a not - for -profit corporation serving public employees exclusively.
• RC's program is endorsed by 19 public sector organizations, including the
National League of Cities, the Government Finance Officers
Association, the American Society for Public Administration, and
many others.
• RC maintains the Vantagepoint Public Employee Memorial
Scholarship Fund for spouses and children of government employees
killed in the line of duty.
These are just a few of the strengths and enhancements we bring to the City of Vernon. We
look forward to your review of our proposal, and to providing additional information upon your
request.
*Morningstar Advice Online is an independent provider of investment advice not affiliated with the ICMA Retirement Corporation.
Investment advice and analysis tools are offered to participants through the ICMA Retirement Corporation, a federally registered
Investment Adviser.
ICMA RETIREMENT C O R P o RATIO N
2
The City of Vernon, California
Section 457 Deferred Compensation Plan
Reduced Fees
RC currently charges an administration fee based on assets served, average participant
balances, and services provided. We currently assess an administration fee of 0.55% on all
assets in the City's plan as co- provider.
In the event the City of Vernon selects RC as its sole provider of deferred compensation plan
administration and investment management services, RC proposes to reduce the annual plan
administration fee as follows:
Year 1: 0.22%
Year 2: 0.15%
Year 3: 0.08%
Year 4: Plan administration fee eliminated
In addition our current 0.15% mutual fund services fee will be eliminated and expenses on our
index funds will be reduced by 0.20 %.
This proposal is based on the transfer of approximately $1 million from the current co- provider
with a five -year exclusive contract with one -year annual renewal each year after, and consistent
usage of EZLink for remittance of funds and data transfer.
At RC, we believe the City and its participants should not be penalized with fees and restrictions
merely for withdrawing assets from our program. We therefore have no front -end loads,
deferred sales charges, or market value adjustments in the RC program. We support all efforts
to eliminate these expensive and inflexible restrictions on participants' funds, and we encourage
all members of the pension industry to remove these impediments to the effective long -term
investment and disbursement of public employee retirement savings.
The following are fund- specific fees and expenses that are also incurred by participants:
Fund
Large Cap Domestic Stock Funds
VantageTrust Growth Fund
Morningstar
Category/
Large Growth
Fund Fees/
Expenses2
0.92%
VT American Century Ultra®
Large Growth
0.99%
VT Putnam Voyager Fund
Large Growth
0.96%
VantageTrust 500. Stock Index Fund
Large Blend
0.28%
VantageTrust Broad Market Index Fund
Large Blend
0.30%
VantageTrust Growth & Income Fund
Large Blend
0.85%
VT Calvert Social Investment Fund
Large Blend
1.29%
VT Fidelity Contrafunde
Large Blend
0.99%
��� ICMA RETI REM ENT CORPORATION
The City of Vernon, California
Section 457 Deferred Compensation Plan
Reduced Fees
Fund
VT Fidelity Magellan® Fund
Morningstar
Category'
Large Blend
Fund Fees/
Expenses2
0.76%
VT MFS Large Company Growth Fund
Large Blend
0.94%
VantageTrust Equity Income Fund
Large Value -
0.93%
VT Lord Abbett Large Com•an Value Fund
Large Value
0.85%
Mid /Small Cap Domestic Stock Funds
Vanta•eTrust A. •resslve 0. •ortunities Fund
Mid -Ca • Growth
1.19%
Vanta•eTrust Mid Small Co Stock Index Fund
Mid -Ca • Blend
0.34%
VT American Centu ' Value Fund
Mid -Ca • Value
1.00%
VT Gabelli Value Fund
Mid -Cap Value
1.40%
VT INVESCO Small Company Growth Fund
Small Growth
1.45%
VT T. Rowe Price® Small Cap Stock Fund Adv
Small Blend
1.19%
VT T. Rowe Price® Small -Ca • Value Fund Adv
Small Value
1.06%
Foreign /World Stock Funds
VT Janus Adviser Series Worldwide Fund
World Stock
1.20%
VantageTrust International Fund
Foreign Stock
1.21%
VantageTrust Overseas Equity Index Fund
Foreign Stock
0.51%
VT Putnam International E.ui Fund
Forei.n Stock
1.16 %.
Bond /Stable Value Funds
VantageTrust PLUS Fund
Stable Value
0.47%
Vanta.eTrust Cash Mana•ement .
N A
0.65%
VantageTrust US Government Securities
Intermediate Govt.
0.62%
VantageTrust Core Bond Index
Intermed Term Bond
0.29%
VT PIMCO Total Return Bond Fund
Intermed Term Bond
0.68%
VT PIMCO Nish Yield Bond Fund
Hi•h Yield Bond
0.75%
Domestic Hybrid /Lifestyle Funds
VantageTrust Savings Oriented
Domestic Hybrid
1.03%
Vanta • eTrust Conservative Growth
Domestic H brid
1.02%
VantageTrust Traditional Growth
Domestic Hybrid
1.05%
Vanta•eTrust Lone -Term Growth
Large Growth
1.01%
Vanta•eTrust All -E• ui Growth
Large Growth
1.18%
VantageTrust Asset Allocation
Domestic Hybrid
0.76%
VT Fidelity Puritan® Fund
Domestic Hybrid
0.64%
1 Categories are from Momingstar as of 3/31/01 for underlying funds where available. Category, for the PLUS Fund was determined
by ICMA -RC based on underlying fund characteristics. * Morningstar, Inc.® provides independent analysis of open -ended mutual
fund companies and Is not affiliated with the ICMA Retirement Corporation ("ICMA -RC "). For each fund with at least a three -year
history, Morningstar calculates a Morningstar Rating (based on a Morningstar Risk- Adjusted Return measure that accounts for
variation in a funds monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis
on downward variations and rewarding consistent performance. The top 10% of funds In each category receive 5 stars, the next
22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. Highly rated
funds are defined as those that have a four or five star Morningstar rating. Data provided by Momingstar, Inc. (9. All rights reserved.
The information contained herein; (1) is proprietary to Morningstar and /or its affiliates; (2) may not be copied or distributed; (3) is
not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers nor ICMA -RC are responsible for any
damages or losses arising from any use of this information. This information is being provided for informational purposes only and is
not Intended as or to be relied upon as investment advice or the solicitation or offer of a particular product or service. ICMA -RC does
not review the Morningstar data and, for mutual fund performance information, you should consult the specific fund's current
prospectus for additional Information concerning, fees, expenses and trading restrictions.
ICMA RE'T!REMENT CORPORATION
The City of Vernon, California
Section 457 Deferred Compensation Plan Reduced Fees
2 VantageTrust Mutual Fund Series expenses (applied to funds which are denoted with a "VT" at the start of the fund name) are
based on data derived from the underlying fund's current prospectus as of 2/28/03. VT Fidelity Magellan° is closed to new plan
sponsors. Expenses are subject to change. Please consult both the current specific fund's prospectus and Making Sound Investment
Decisions: A Retirement Investment Guide for a summary of all fees, expenses, retained revenue reimbursements and trading
restrictions carefully prior to investing any money. Vantagepoint securities are distributed by ICMA -RC Services, LLC, a broker - dealer
affiliate of ICMA -RC, member NASD /SIPC. ICMA -RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002 -4240.
1- 800 - 669 -7400. www.lcmarc.org.
I C M A R E T I R E M E N T C O R P O R A T I O N
The City of Vernon, California
Section 457 Deferred Compensation Plan
Employee Education
At RC we call ourselves The Learning Organization," because we are committed to participant
education.
We believe that informed participation is crucial to the success of your pension program.
Accordingly, we developed our curriculum of seminars and educational materials with one aim
in mind: helping public sector employees make informed retirement investment decisions.
Enrollment and Educational Group Meetings*
Focus groups have shown that many employees do not participate in their retirement plans for
fear of making mistakes in their investment choices. To counteract this concern, a strong
employee education program is essential.
The ultimate success of your program is measured by the added retirement benefit achieved by
employees participating in the plan. RC offers a clear, concise, dynamic educational program
that includes group meetings, individual consultations, and periodic publications to help
participants become successful investors.
Mr. Shawn Baker, your RC Retirement Plans Specialist, conducts group educational meetings to
discuss retirement planning, the investment options available, and the specific features of your
program. Our on -site Investment Education Series enhances the value of your plan as an
employee benefit by giving participants the knowledge they need to make key decisions. This
series, which is customized to your specific requirements, may include the following courses:
• Fundamentals of Investing Part I. This course is targeted at the novice investor, and
explains the effects of risk on investments and how to manage investments to reduce risk.
• Fundamentals of Investing Part II. This course builds on the information discussed in
Part I, and covers more advanced topics. Participants learn how to read a prospectus, and
how to monitor and evaluate fund performance.
• Retirement Planning. In this course, participants set retirement goals and estimate
assets available for retirement using our publication Charting Your Course.
• Fundamentals of a Retirement Plan. This workshop covers the basics of the plan, from
current tax benefits to eligibility for withdrawal. An emphasis on how the plan works and
the investment options available make this an excellent workshop for new participants.
• Understanding Your Funds. This course offers detailed information about each of the
investment options available. Topics include fund characteristics, total fees, and historical
performance.
I C M A R E T I R E M E N T C O R P O R A T I O N
6
The City of Vernon, California
Section 457 Deferred Compensation Plan Employee Education
Understanding the VantageLink Website. This class is designed to walk individuals
through VantageLink, the ICMA Retirement Corporation's website. Participants who take
this course emerge with a thorough understanding of the retirement planning tools that are
literally at their fingertips.
• Withdrawal Options. This course explains . the available withdrawal options for
participants nearing retirement age.
■ Specialized Workshops. Customized seminars can also be developed to meet the specific
needs of your employees. For example, we developed a course on Retirement Planning
Issues for Women, which reviews areas of unique concern to women, such as longer life
expectancies, interruption of working careers, and wage differentials.
* Seminars are provided for educational purposes only and is not intended to be construed as or relied upon as investment advice.
The ICMA Retirement Corporation does not offer specific tax or legal advice. Investors should seek financial advice regarding the
appropriateness of investing in any securities or investment strategies discussed or recommended. Please consult both the current
Vantagepoint Funds prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment Guide carefully prior to
investing any money. Vantagepoint securities are distributed by ICMA -RC Services, LLC, a broker - dealer affiliate of ICMA -RC, member
NASD /SIPC. ICMA -RC Services, LLC, 777 North Capitol Street NE, Washington, DC 20002 -4240. 1 -800- 669-7400.
Education Pays Off:
Our Participants Understand Their Time Horizons and Risk Tolerance
Under 35
35 -45
46 -55 56 -65
Individual Consultations
Following the group presentations, your Retirement Plans Specialist provides individual
consultations to offer unbiased assistance in the selection of investment options and completion
of enrollment materials.
One -on -one counseling sessions focus on the financial concerns of individual participants. Using
our proprietary benefit calculation software on a laptop computer, Mr. Baker performs
personalized benefit and tax savings illustrations for each participant. Our benefits calculation
program performs two main functions:
ICMA RETIREMENT CORPORATION
7
The City of Vernon, California
Section 457 Deferred Compensation Plan Employee Education
• Illustrations. Benefit and tax - savings illustrations are based on a participant's age, salary,
employee pre -tax deferral rate (if applicable), the amount required at retirement, and
disbursement schedule. The maximum deferral amount, incorporating an assumed cost -of-
living increase, is also shown.
• Investment Information. Investment information helps employees determine which
options or investment strategies are best for them, given their level of risk tolerance and
time horizon. The desired return rates determine the projected yield and targeted amount
to save.
These personalized illustrations show the effect that various contribution and investment
allocation scenarios can have on potential benefits. All illustrations can be printed in hard copy
for employees' records. This distinguishing feature of the RC program helps participants design
a portfolio that meets their retirement goals.
As a non - commercial provider of public sector retirement services, we have the independence
necessary to provide service that is focused on meeting your employees' needs. Our
representatives have no economic incentive to favor any investment products or withdrawal
options over others.
Communication Materials
All of the materials we provide to you and your employees were designed specifically for public
retirement plans. Our materials seek to educate participants —not "sell" products. We provide
your employees with the following educational guides:
Educational Publications
• RC 457 Plan Employee Enrollment Kit. Contains educational brochures and all the
forms participants need to enroll in the plan.
• A Tax Shelter for Your Future. Provides a summary of 457 deferred compensation
retirement plans.
■ Charting Your Course: A Retirement Planning Guide for Public Sector Employees.
This retirement savings kit helps participants set savings goals based on estimated
retirement expenses and assets.
• Fund Option Sheet. Reviews the investment options administered by the Retirement
Corporation, and describes each fund's portfolio, objective, and risk level.
I C M A R E T I R E M E N T C O R P O R A T I O N
8
The City of Vernon, California
Section 457 Deferred Compensation Plan Employee Education
Newsletters
The Vantagepoint. Our quarterly participant newsletter that discusses market trends, new
plan features and services, regulatory developments, and other issues.
• Vantagepoint Perspective. Our online newsletter that provides current fund
performance, benchmarks, and data on the funds of the VantageTrust.
• Employer Bulletin. Our monthly employer newsletter that contains the latest regulatory
changes and other information that affects plan sponsors.
Transactional Publications
• Managing Your Account Has Never Been Easier. Our brochure that describes how to
use our toll -free information line and how to access and use our comprehensive Internet
services.
• 457 Deferred Compensation Plan Withdrawal Packet. Describes all of the options
available for withdrawal and works through the completion of each form included in the
packet.
Investment Fund Disclosure
Vantagepoint Funds Prospectus. Provides information on the Vantagepoint Funds,
including specifics on the types of investments, investment managers, fees, expenses, and
other pertinent data.
Making Sound Investment Decisions: A Retirement Investment Guide. Provides
specific information about the types of investments, investment managers, fees, expenses,
and other pertinent data about the VantageTrust.
• VantageTrust Annual Report. Provides specific information to participants on the
financial performance of investments through the VantageTrust. Includes the audited
financial statements for the Trust.
I C M A R E T I R E M E N T C O R P O R A T I O N
9
The City of Vernon, California
Section 457 Deferred Compensation Plan
Value -Added Service
The RC Philosophy: A Customer- Oriented Approach to Client Service
The ICMA Retirement Corporation has a fundamental mission: to provide the highest quality
retirement plan administration and investment management services at the lowest possible
cost. Since our inception in 1972, we have remained true to that original vision. These are just
a few examples of our philosophy at work:
• Our programs have never had any type of market value adjustment or discontinuance
charge— either on a participant- or plan -level basis.
• We voluntarily lower fees as plan characteristics, economies of scale, and productivity
improve. Plan service components have been continually added without charge.
• We have independent, unbiased relationships with investment firms and mutual funds
contracted to supply investment management.
On -site representatives are non - commissioned. This ensures that your employees receive
unbiased financial planning assistance, since the compensation of our representatives is not
affected by participant investment /disbursement decisions.
■ The aggregate investment allocation among our 600,000 participants is comparable to that
of institutionally managed defined benefit plans (employee investors with access to strong
defined benefit plans rarely select annuities).
■ Our state -of- the -art OmniPlus recordkeeping system meets the administrative service
requirements of our plan sponsors. Automated transactions and instant access to
plan /participant account information are just the beginning of the services available.
• VantageLink, our website, is the only Internet site dedicated solely to public sector
retirement investment. VantageLink provides participants with the ability to make
automated transactions, and gives them access to sophisticated education modules and
worksheets. We continually expand and update the site to ensure ongoing quality of
service.
Service Performance Standards
The ICMA Retirement Corporation is fully committed to continuing to deliver the best possible
service to plans and participants. Current performance standards for specific processing events
are shown in the grid on the following page:
I C M A RETIREMENT - C O R P O RATIO N
10
The City of Vernon, California
Section 457 Deferred Compensation Plan
Value -Added Service
Processing Event
Contributions
Same day, upon receipt of good data by 1:00 p.m. Pacific
Time
Distributions
Mailed within one business day of receipt (after all required
waiting periods)
Transfers /Exchanges
Same day, upon receipt of good data by 1:00 p.m. Pacific
Time
Investment Elections
Same day, upon receipt of good data by 1:00 p.m. Pacific
Time
VRU and Call Center
98% of all calls within one ring
Participant Statements
Mailed within 10 days of quarter end
Plan Sponsor Reports
Mailed within 15 days of quarter end
Regulatory and Compliance Services
Our in -house legal staff continuously monitors regulatory and statutory requirements.
The responsibility of our in -house compliance department is to ensure that our processing
environment is in compliance with applicable SEC, NASD, and IRS requirements. All
documents, including our plan documents, are reviewed and updated as needed. In addition,
we perform numerous tests to ensure compliance with plan and Internal Revenue Code
provisions, including checks for participant adherence to minimum distribution requirements.
RC reports, on legal and regulatory changes affecting public sector retirement plans to plan
sponsors via our monthly Employer Bulletin and on our VantageLink website. Other RC
legislative publications and services include:
• EGTRRA: A Guide for Public Employers, our publication that provides a comprehensive
overview of how the new legislation affects your plans.
• Pension Portability Unit, our toll -free information center staffed by live representatives
available to help participants understand the new rules and determine the best course of
action.
Legislative Action Center, our interactive online legislative research service, features the
Today in Congress legislative news update, a search function on current bills and
legislation, and an email service that allows participants to send a message to Congress to
support important 457 and 401 plan provisions in future legislation (suggested letters
included).
ICMA RETIREMENT CORPORATION
The City of Vernon, California
Section 457 Deferred Compensation Plan Value -Added Service
RC's Fully Flexible Payout Options
RC offers the most flexible selection of payout options allowed by law. Participants may specify
a fixed period over which to receive benefits, a fixed amount to receive each month, or another
payment schedule of their choice, consistent with IRS regulations. Participants who receive
regular distributions can have their payments electronically deposited directly to their bank
accounts. Examples of available payment schedules include:
• Lump sum payment of accumulated assets
■ Rollovers to other plans or to an IRA consistent with the Internal Revenue Code
• Monthly, quarterly, semiannual or annual payments based on participant - selected schedule:
• Specified amount at regular intervals until the account balance is depleted
• Fractional payments to ensure account depletion over a defined period of time
• Declining payments within Internal Revenue Code minimums
• Internal Revenue Code minimum, recalculated annually
Payments estimated to deplete the account over a specified number of years
• Payments estimated to deplete the account over the life expectancy of the participant,
participant and spouse, or beneficiary
• COLA (cost -of- living- adjusted) periodic payments for §457 plans, which increase at the
beginning of each calendar year, at the rate of increase of the Consumer Price Index for
All Urban Consumers (CPI -U)
• Combination of lump -sum and periodic payments
Partial or full annuitization through RC's Income for Life Program *, which offers access
to lower cost "group rate" annuities from multiple providers
Additionally, during distribution participants can:
• Select the order of investment funds to be depleted
Transfer funds among investment options
In addition, RC never levies hidden deferred sales charges or stable value adjustments:
participants leaving the Plan may withdraw all assets without RC- imposed charge or
penalty. The amount that an individual participant can withdraw, or the amount available to
eligible beneficiaries, is always equal to the full value of the participant's account at
time of disbursement, never less.
* Annuities are Insurance products available through companies not affiliated with the ICMA Retirement Corporation. Please consult
"Income for Life Annuity Program: Immediate Annuities for Retirement Income," prior to purchasing an annuity. 1- 800 -669 -7400.
ICMA RETIREMENT CORPORATION
12
The City of Vernon, California
Section 457 Deferred Compensation Plan Value -Added Service
Standard. Plan Sponsor Reports
RC provides the City with the following reports as a standard feature of our program:
• Quarterly and Annual Employer Statements. Statements provide a summary of plan
contributions, investment gains and losses, disbursements, fund transfers, and beginning
and ending balances.
• Monthly Employer Bulletin. Newsletter containing the latest regulatory changes and
specific information that affects employers.
Vantagepoint Perspective. Our online quarterly investment newsletter that provides
current fund performance, benchmarks, and data on the funds of the VantageTrust.
The RC Employer Manual. A complete reference of RC's services is available online at
www.icmarc.orq. A condensed hardcopy'Employer Guide is also available.
Custom Plan Sponsor Reports
We can also prepare customized hard copy reports upon request based on information retained
by our system. Customized reports of reasonable quantity and complexity are provided at no
extra cost. RC is developing flexible online employer reporting and download capabilities for
release later this year. The following data is now available online:
Plan Information
• Plan balances by investment as of the most recent business date
■ Plan level investment allocations
• Pie chart of plan investments by age range
• Contribution transactions for various date ranges for the plan
Transactions by type summarized for various date ranges for the plan
• Participant addresses for participants by specified status or for all participants
• Daily share prices and short-term investment performance measures
• Total return performance in the SEC "standardized" presentation
■ A library of RC publications
ICMA RETIREMENT CORPORATION
13
The City of Vernon, California
Section 457 Deferred Compensation Plan Value-Added Service
Participant Information
Account balance by investment
• YTD contributions and contributions by specified date range
• Allocation percentages
• Statements on demand
• Personal information (name, address, birthdate etc.)
Standard Participant Reports
RC provides the City's employees with the following reports as a standard feature of our
program:
■ Quarterly statements of account activity showing contributions, investment gains and
losses, disbursements, fund transfers, service charges (if applicable), and beginning and
ending account balances. In addition, participant statements include pie charts depicting
asset allocations, and a calculation of the internal rate of return the participant achieved in
the account.
• The Vantagepoint, our quarterly participant newsletter, discusses investment issues,
market trends, new plan features and services, regulatory developments.
Custom Participant Reports
VantageLink, the RC website at www.icmarc.orq, offers participants online access to
account information and automated reporting capabilities, including:
Account Information
• Holdings and prices (updated daily)
■ Statements on demand
• Investment performance (numerically and on charts)
■ Pie charts of participant investment allocation
ICMA RETI REM ENT CORPORATION
14
The City of Vernon, California
Section 457 Deferred Compensation Plan Value -Added Service
Plan Information
• Articles from experts in retirement personal finance
• Publications, including MarketView, that provide in -depth commentary and investment
resources for long -term investors
• Chart of the Week
• Fund descriptions, including objectives, strategies, risk, and subadvisers
• 457 plan features
• Legislative updates
• Library of retirement articles
• Glossary
ICMA RETIREMENT CORPORATION
15
The City of Vernon, California
Section 457 Deferred Compensation Plan
Technological Services
Toll-Free Participant Telephone Access
We offer participants the following toll -free telephone services:
■ VantageLine. Our VantageLine voice response unit allows participants to make automated
transactions and access account information 24 hours a day. Participants can transfer funds,
change investment allocations, and obtain information on account balances, fund allocation,
current rates, and investment performance, as well as vesting status and outstanding
amounts on RC- administered loans.
■ Investor Services Representatives. Our registered Investor Services Representatives
have immediate online access to plan data and participant account information. They can
answer your employees' questions about:
■ Investments • Reallocation
• Account status • Transactions
• Account balances • Loan status
• Current investment allocation • Benefit payments and tax withholding
Investor Services Representatives can provide benefit illustrations, carry out instructions to
reallocate contributions, transfer assets between funds, and initiate loans. Representatives are
available from 5:30 AM to 6:00 p.m. Pacific Time.
• TDD Line. We provide a toll -free TDD line for hearing- impaired participants. To access
account information, the participant dials the TDD line and keys in the inquiry; an Investor
Services Representative answers by typing in a response.
• Help for Non - English Speakers. We also provide a toll -free line for Spanish- speaking
participants featuring bilingual Investor Services Representatives. An additional 140
languages can be accommodated through AT &T's Language Line translation service.
Toll -Free Employer Telephone Access
Our specially designated employer service representatives are trained to support the day -to -day
needs of plan sponsors. They assist you with answers to general and technical plan questions,
plan adoption and implementation procedures, regulatory changes, contribution submittals, and
orders for publications and forms. Employer representatives are available Monday through
Friday, from 5:30 AM to 4:30 p.m. Pacific Time.
ICMA RETIREMENT CORPORATIO'N
16
The City of Vernon, California
Section 457 Deferred Compensation Plan Technological Services
Internet Access
VantageLink, the RC website at www.icmarc.org, offers participants access to account
information and automated transaction capability online. We were the first vendor in the public
sector retirement plan industry to offer participants access to account data over the Internet,
and we continuously strive to enhance the utility of this powerful communications tool.
VantageLink offers the following features for your participants:
Accounts
■ Holdings and prices (updated daily)
Statements on demand
■ Investment performance (numerically and on charts)
• Pie charts of participant investment allocation
Transactions
• Fund transfers
■ Contribution allocation changes
■ Rebalance to contribution allocation
■ E -mail to the Retirement Corporation
Learning Center
• Online classes
■ Articles from experts in retirement personal finance
■ Publications, including MarketView, that provide in -depth commentary and investment
resources for long -term investors
■ Financial planning calculators *:
• Autos ■ Credit line • IRA —Roth vs. traditional
• Budgeting • Home • Retirement planning
• Credit cards • Insurance • Savings
* These calculators are designed to provide general assistance in making informed decisions. Their accuracy Is not guaranteed
and some results may vary' from those provided by other systems.
I C M A R E T I R E M E N T C O R P O R A T I O N
17
The City of Vernon, California
Section 457 Deferred Compensation Plan Technological Services
Legislative Action Center
• Instructions on how to contact the Legislature, the Executive Branch, and the Judiciary
• Today in Congress
Search engine for bills and legislation
• E -mail messaging to Congress to support important plan provisions in future legislation
(suggested letters included)
MarketView
• Latest investment perspective from Girard Miller, RC President and CEO
■ Latest InvestmentInsightfrom John Tobey, Vice President and CIO
• Chart of the Week
■ Sites on:
• Economic environment • Investment barometers
• Equity markets ■ Investment resources
Additional Information
• Fund descriptions, including objectives, strategies, risk, and subadvisers
• 401 and 457 plan features
• Legislative updates
• Library of retirement articles
• Glossary
Quote Service
• Stock quotes
• Portfolio tracking
• Custom news
• Personal home pages
I C M A R E T I R E M E N T C O R P O R A T I O N
18
The City of Vernon, California
Section 457 Deferred Compensation Plan Technological Services
• Email alerts
• Chart stocks & indices
• Market commentary
IRA Wizard
Available online at our VantageLink website, the VantageLink IRA Wizard makes setting up an
IRA as easy as clicking your computer mouse. This new online application takes participants
step -by -step through the process of establishing a new Vantagepoint Roth, Traditional, or
rollover IRA -and even handles rollover requests from other financial institutions as well as
from RC.
■ Open a Vantagepoint Roth or Traditional IRA
• Consolidate retirement assets:
■ Roll over 457, 401, or 403 plan assets from another provider
Roll over RC- administered 457 or 401 plan assets
■ Combine IRAs into one easy -to- manage Vantagepoint IRA
• Fund an IRA online
Online Investment Advice
Available at our VantageLink website, RC offers portfolio allocation recommendations as well as
independent investment advice through Morningstar Advice Online *.
We have partnered with Morningstar Advice Online to offer employees online access to
investment advice and recommendations based on the investment options under their plan.
With Morningstar Advice Online's user-friendly platform, RC integrates data from our
systems with additional data entered by participants.
Two levels of service are available:
• PortfolioBuilder. PortfolioBuilder is a service from RC that allows employees to complete a
personal profile and receive a recommendation on how to allocate investment among
different asset classes. It then compares the recommendation with the current asset class
allocation. Users may also choose from various strategies to see how RC's funds can be
used to implement the recommendation
' I C M A R E T I R E M E N T C O R P O R A T I O N N
19
The City of Vernon, California
Section 457 Deferred Compensation Plan Technological Services
Morningstar Advice Online Personal Advisor.* Personal Advisor is offered through
Morningstar, one of the nation's leading providers of online investment advice. Based on
the information you provide, it gives independent advice based on all of the funds available
through the City's plan. Additionally, Morningstar Advice Online Personal Advisor contains
modules that allow the user to enter information pertaining to his or her retirement
investments and receive projections on how much they may need for retirement, as well as
how much they may accumulate based on their present situation. Users can also change
certain variables to see how their projection is affected.
PortfolioBuilder is available free of charge. Morningstar Advice Online* will be free for our first
year as sole provider for the plan and will subsequently be available for an annual fee of $35 to
the user. As described below, participants in our VantagePoints program may apply their
VantagePoints to offset the cost of Morningstar Advice Online Personal Advisor.
*Morningstar Advice Online is an independent provider of investment advice not affiliated with the ICMA Retirement Corporation.
Investment advice and analysis tools are offered to participants through the ICMA Retirement Corporation, a federally registered
Investment Adviser.
EZLink Employer Online Services
RC is committed to offering the most robust Internet services in the industry, and we believe in
using its power to provide plan sponsors with comprehensive and detailed plan information.
Our EZLink (www.icmarc.org) Internet service offers customized electronic access to plan
data that can be used as a critical tool to fulfill your fiduciary responsibility as a plan 'sponsor.
We also provide the ability to implement transactions electronically to enhance your
administrative efficiency. RC currently provides plan sponsors the following plan level activity
online:
Plan Information
• Plan balances by investment as of the most recent business date
• Plan level investment allocations
• Pie chart of plan investments by age range
• Contribution transactions for various date ranges for the plan
■ Transactions by type summarized for various date ranges for the plan
• Participant addresses for participants by specified status or for all participants
■ Daily share prices and short -term investment performance measures
• Total return performance in the SEC "standardized" presentation
I C M A R E T I R E M E N T C O R P O R A T I O N
20
The City of Vernon, California
Section 457 Deferred Compensation Plan Technological Services
• A library of RC publications
Participant Information
• Account balance by investment
• YTD contributions and contributions by specified date range
• Allocation percentages
• Statements on demand
• Personal Information (name, address, birth date etc.)
Automated Transactions
RC's EZLink Internet service provides plan sponsors the ability to streamline operations, speed
processing, and reduce paperwork. This service currently includes transmission of:
• Employer- approved enrollments
■ Contribution data
• Participant data (name and address changes)
Plan Administration
• Ability to create custom messages that appear in Account Access for all participants or
specific participant
• Change Plan Contact names and specify functions allowed within EZLink
• View previous payroll submissions
ICMA RETIREMENT CORPORATION 21
The City of Vernon, California
Section 457 Deferred Compensation Plan
Competitive Investment Products
The Retirement Corporation has been helping local government employers meet their
employees' retirement investment needs since 1972.
The RC Investments Division has over 175 years of combined investment experience. Our
commitment to customized institutional consulting and education has enabled us to create
answers to the investment issues faced by our clients every day.
The value of these services is quantifiable. In 1993, we initiated a nationwide effort to provide
asset allocation tools, and promoted long -term investment in strategically diversified portfolios.
The benefits of education are apparent in the evolution of the distribution of assets in the RC
program:
Total VantageTrust Investment Allocation: 1993 vs. 2002
Participant Asset Allocation in 1993
Participant Asset Allocation in 2002
RC believes that diversified investment, consistently applied toward specified goals, is the best
way to help your employees meet their retirement objectives.
In keeping with this philosophy, we offer a wide array of investment products suited to different
investment styles and strategies. And we offer further support by providing the educational
resources participants need to make informed decisions. Our approach to participant education
is designed to help your employees reach a level of sophistication where they will feel
comfortable using the tools we provide to reach their investment goals.
Our fund offerings* are structured along multiple tracks that attempts to meet the needs of all
investors as they design investment programs that meet their specific objectives, levels of risk
tolerance, and time horizons:
*Please consult both the current specific fund's prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment
Guide carefully . prior to investing any money. Vantagepoint securities are distributed by ICMA RC Services LLC, a broker dealer
affiliate of ICMA RC, member NASD /SIPC. ICMA RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002 -4240. 1 -800-
669- 7400.
I C M A R E T I R E M E N T C O R P O R A T I O N
22
The City of Vernon, California
Section 457 Deferred Compensation Plan Quality Investments
■ Lifestyle -type funds for those who want their investments automatically diversified in a
defined and consistent manner.
• Index funds that provide low -cost access to equity, bond, and international markets, and
are designed to closely track a broad and defined market.
• Institutionally managed mutual funds that often blend the styles of multiple managers
in an effort to invest at the optimal point on the efficient frontier.
• A series of funds that invest in nationally recognized retail mutual funds.
RC: the Manager of Managers
With the exception of the stable value PLUS Fund, which is managed by RC, assets of all funds
are managed by independent, external managers hired to invest toward defined objectives.
This approach allows us to focus exclusively on the interests of our participants -and provides
the flexibility to make changes as manager abilities, markets, and investor needs evolve. Our
investment group of fourteen professionals, with a combined total of over 175 years of
institutional investment experience, is responsible for the selection and monitoring of these
outside managers.
Our philosophy of diversified and consistent investing, however, is best exemplified by the
institutionally managed Vantagepoint Funds. Where possible, multiple managers are employed
to blend styles in an effort to invest at the optimal risk/return point (the efficient frontier).
Individual managers within a fund are replaced as necessary, which prevents the disruption
participants typically experience when retail mutual funds are removed from a program.
The Model Portfolio Funds are structured to give participants consistent asset allocations in a
fashion similar to defined benefit plan management. Allocations among Vantagepoint funds are
defined and assets are reallocated quarterly, or more frequently, when allocation shifts exceed
defined parameters.
VantageTrust Funds*
VantageTrust Funds are exclusively available through our program and are structured to offer
the core risk/return options needed for any investment portfolio. Each of the VantageTrust
Funds is invested solely in the shares of a single underlying Vantagepoint Fund, which has the
same investment objectives as the corresponding VantageTrust Fund.
* Please consult both the current specific fund's prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment
Guide carefully prior to investing any money. Vantagepoint securities are distributed by ICMA RC Services LLC, a broker dealer
affiliate of ICMA RC, member NASD /SIPC. ICMA RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002 -4240. 1 -800-
669 -7400.
ICMA RETIREMENT CORPORATION
23
The City of Vernon, California
Section 457. Deferred Compensation Plan
Quality Investments
The first Vantagepoint Funds were registered on March 1, 1999. Predecessor funds operated
prior to that date with an exemption from the SEC. The following chart lists the subadvisers of
the Vantagepoint Funds, also indicating the inception date of the predecessor fund.
Fund Name
Large Cap Domestic Stock
VantageTrust Growth Fund
Morningstar
Category
Funds
Large Growth
Philosophy /Objective
Seeks capital growth through stocks with above-
average potential for corporate earnings growth and
by applying a growth strategy.
Subadviser /Manager
Fidelity Mgmt Trust Co.
Barclays Global Investors
Tukman Capital Mgmt.
Brown Capital Mgmt.
Peregrine Capital Mgmt.
VT American Century
Ultra® Fundl
Large Growth
Seeks aggressive growth of capital by investing in
stocks with greater than average growth prospects
American Century
VT Putnam Voyager Fund
Large Growth
Seeks rapid growth of capital through small -to -mid-
sized companies.
Putnam Management
VantageTrust 500 Stock
Index Fund
Large Blend
Seeks growth by paralleling the large cap S&P 500
Index.
Barclays Global Investors
VantageTrust Broad
Market Index Fund
Large Blend
Seeks long -term growth by paralleling the broad equity
Wilshire 5000 Index.
Barclays Global Investors
VantageTrust Growth &
Income Fund
Large Blend
Seeks long -term growth through capital appreciation
and current income.
T. Rowe Price Assoc.
Capital Guardian
Wellington Capital Mgmt.
VT Calvert Social
Investment Fund
Large Blend
Seeks to invest at least 80% of assets in equity
securities including common stocks, convertible
securities, and preferred stocks.
Atlanta Capital Mgmt.
VT Fidelity Contrafund®
Large Blend
Seeks capital appreciation through out -of- favor,
turnaround stocks with significant growth potential.
Fidelity Investments
VT Fidelity Magellan ®Z
Large Blend
Seeks long -term capital appreciation by investing in
equity securities with potential for high long -term
returns.
Fidelity Investments
VT MFS Large Company
Growth Fund3
Large Blend
Seeks Tong -term growth of capital and future income
rather than current income. Invests primarily in large -
cap stocks, but may also Invest in mid -cap and
International stocks.
MFS Investment Mgmt
VantageTrust Equity
Income Fund
Large Value
Seeks long -term growth through dividend income and
capital appreciation.
T. Rowe Price Assoc.
Southeastem Asset Mgmt.
Barrow, Hanley, Mewhinney
& Strauss
VT Lord Abbett Large
Company Value Fund4
Large Value.
Seeks long -term growth of capital and income,
consistent with low volatility. It primarily invests in
large, seasoned companies that are selling at prices
the manager believes are undervalued.
Lord Abbett Company
I C M A R E T I R E M E N T C O R P O R A T I O N
24
The City of Vernon, California
Section 457 Deferred Compensation Plan
Quality Investments
Fund Name
Mid /Small Cap Domestic
VantageTrust Aggressive
Opportunities Fund
Morningstar
Category
Stock Funds
Mid -Cap Growth
Philosophy /Objective
Seeks long -term growth of capital by investing In
smaller companies and utilizes both value and growth
strategies.
Subadviser /Manager
T. Rowe Price Assoc.
Wellington Mgmt. Co.
Southeastern Asset Mgmt
VantageTrust Mid /Small
Company Stock Index
Fund
Mid -Cap Blend
Seeks long -term capital appreciation by paralleling the
small and mid cap Wilshire 4500 Index.
Barclays Global Investors
VT American Century®
Value Fundl
Mid -Cap Value
Seeks growth by investing In stocks perceived to be
selling below market value.
Seeks long -term capital appreciation by investing
stocks perceived to be selling at prices below market
value. May be concentrated in a few securities.
American Century
Investments
Gabelli Funds
VT Gabelli Value Fund
Mid -Cap Value
VT INVESCO Small
Company Growth Fund
Small Growth
Seeks long -term capital growth. The Fund normally
invests at least 65% of assets in companies with
market capitalizations of less than $1 billion.
INVESCO Funds Group
VT T. Rowe Price® Small
Cap Stock Funds
Small Blend
Seeks long -term capital growth by investing in the
stocks of rapidly growing small companies. The Fund
considers small companies as those with market
capitalizations that fall within the range of the Russell
2000 Index.
T. Rowe Price Assoc.
VT T. Rowe Price® Small-
Cap Value Fund Advs
Small Value
Seeks long -term capital growth by investing primarily
in small - capitalization companies whose stock prices
do not appear to adequately reflect their underlying
value. The Fund invests in companies with a market
capitalization of $1 billion or less.
T. Rowe Price Assoc.
Foreign /World Stock Funds
VT Janus Adviser Series
Worldwide Fund
World Stock
Seeks to invest primarily in foreign and domestic
stocks. It normally invests in at least five countries,
including the U. S.
Janus Capital Mgmt
VantageTrust International
Fund
Foreign Stock
Seeks diversification and capital appreciation through
companies doing business outside the U.S.
Capital Guardian Trust Co.
Artisan Partners
VantageTrust Overseas
Equity Index Fund
Foreign Stock
Seeks long -term growth diversification by paralleling
the non-U.S. equity EAFE Index
Barclays Global Investors
VT Putnam International
Growth Fund
Foreign Stock
Seeks capital appreciation. Looks to invest in
companies of any size that it judges to be in a strong
growth trend or that it believes to be undervalued.
May invest in both developed and emerging markets.
May engage in various hedging strategies.
Putnam Investments
Bond /Stable Value Funds
VantageTrust PLUS Fund
Stable Value
Seeks preservation of principal and current income
through investment contracts issued by a number of
high- quality companies.
ICMA Retirement Corporation
VantageTrust Cash
Management Fund'
N/A
Seeks current income through money market
instruments and short -term bonds.
AIM Advisors
ICMA RETIREMENT CORPORATION
25
The City of Vernon, California
Section 457 Deferred Compensation Plan
Quality Investments
Fund Name
Bond /Stable Value Funds
VantageTrust US
Government Securities
Fund
Morningstar
Category
Intermediate
Govt.
Philosophy /Objective
Seeks income and return equivalent to Intermediate-
term (5 -15 years) fixed- income securities, while
minimizing credit risk.
Subadviser /Manager
Seix Inv. Advisors, Inc.
VantageTrust Core Bond
Index Fund
Intermediate
Term Bond
Seeks long -term capital growth and current Income.
The fund normally invests up to 75% of assets in
domestic and foreign equities. It may also invest in
preferred stocks, warrants, convertibles and debt.
Vantagepoint Investment
Advisors
VT PIMCO Total Return
Bond Fund
Intermediate
Term Bond
Seeks to invest at least 65% of assets in debt
securities, corporate bonds, and mortgage related
securities.
Pacific Investment Mgmt.
VT PIMCO High Yield Bond
Fund
High Yield Bond
Seeks to invest mainly in bonds that are obligations of
U.S. corporations. It also typically invests in securities
that are below investment in quality and have
intermediate to, long -term maturities.
Pacific Investment Mgmt.
Domestic Hybrid /Lifestyle
Funds
VantageTrust Savings
Oriented Fund
Domestic Hybrid
The fund's primary investment objective is to provide
conservation of principal, reasonable current income,
and the potential for limited profit.
Vantagepoint Investment
Advisors
VantageTrust Conservative
Growth Fund
Domestic Hybrid
The fund's primary investment objective is to provide
conservation of principal, reasonable current income,
and small growth potential through exposure to
stocks.
Vantagepoint Investment
Advisors
VantageTrust Traditional
Growth Fund
Domestic Hybrid
The fund's primary investment objective is to offer
capital growth with moderate risk through exposure to
domestic and international stocks.
Vantagepoint Investment
Advisors
VantageTrust Long -Term
Growth Fund
Large Growth
The fund's primary objective is to offer significant
growth potential through substantial exposure to
domestic and international stocks.
Vantagepoint Investment
Advisors
VantageTrust Model
Portfolio All -Equity Growth
Fund
Large Growth
The fund's primary objective is to offer high long -term
capital growth through exposure to stocks.
Vantagepoint Investment
Advisors
VantageTrust Asset
Allocation Fund
Domestic Hybrid
Seeks conservative growth by actively allocating assets
among stocks, bonds and cash. Designed to take
advantage of volatile markets by varying the
percentage mix of those asset classes.
Mellon Capital Mgmt.
VT Fidelity Puritan® Fund
Domestic Hybrid
Seeks total retum through high current income by
Investing in a diversified portfolio of high - yielding
stocks and bonds.
Wilshire Asset Mgmt.
1 Investments in the Cash Management Fund are not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it Is possible to lose
money by investing in the Fund.
* Please consult both the current specific fund's prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment
Guide carefully prior to investing any money. Vantagepoint securities are distributed by ICMA RC Services LLC, a broker dealer
affiliate of ICMA RC, member NASD /SIPC. ICMA RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002 -4240. 1 -800-
669 -7400.
I C M A R E T I R E M E N T . C O R P O R A T I O N
26
The City of Vernon, California
Section 457 Deferred Compensation Plan Quality Investments
RC's Due Diligence Process
RC conducts independent oversight and review of all funds offered to plans (with the exception
of the PLUS Fund, which is managed in- house). RC's Investments Division is responsible for
the management of all assets in the VantageTrust.
All Vantagepoint funds are funds created by RC, and each has a stated investment objective.
RC hires professional investment management organizations (referred to as subadvisers) to
manage specific segments of each fund. Each subadviser is in turn bound by a set of
guidelines specific to the Vantagepoint fund segment they are hired to manage. The guidelines
not only characterize the investment objectives, but also set limits on the types of securities
each subadviser is allowed to invest in These limits are designed to control the risk of the
portfolio, yet allows the manager to add value to the Vantagepoint fund in its area of expertise.
Riskier types of investments and strategies are specifically addressed in each manager's
assignment and are monitored closely by RC.
Each subadviser's portfolio is analyzed regularly. Risk, return and diversification measures are
assessed for each subadviser and for the entire Vantagepoint fund. RC uses several types of
analytical software to independently evaluate each portfolio, performance and transactions.
Analytical tools are combined with qualitative research to:
Confirm that the objectives and guidelines of each fund are met;
■ Measure the risk, return and diversification of the portfolio; and
• Make any appropriate adjustments to the portfolios to maintain the overall investment
objectives of the Vantagepoint fund.
RC also offers a number of popular mutual funds in the VantageTrust Mutual Fund Series. RC
monitors these funds as well, but unlike the Vantagepoint funds, RC does not have control over
the investment objectives and guidelines of these funds. Both quantitative and qualitative
analyses are conducted to determine the fund's adherence to stated objectives, prospectus
parameters, and to identify the specific types of risk incurred by the fund. Regular analysis and
reporting are done. Adjustments to the VantageTrust Mutual Fund Series are made when a
fund fails to meet RC's expectations for the fund given the fund's stated objectives.
This independent oversight allows RC to add a level of portfolio analysis and risk management
over the subadvisers, Vantagepoint funds and VantageTrust Mutual Fund Series funds.
I C M A R E T I R E M E N T C O R P O R A T I O N
27
The City of Vernon, California
Section 457 Deferred Compensation Plan
Performance
Quality Investments
The Vantagepoint Perspective is our online quarterly investment newsletter supplement that
provides current fund performance, benchmarks, and data for funds of the VantageTrust.
Fund Name
Large Cap Domestic Stock Funds
VantageTrust Growth Fund
Annualized Returns (Net of Fees)
as of September 30, 2003
Year to
Since Incept
Date 1 Year 3 Year 5 Year 10 Year Incept Date
-12 77%
a ,1 0/
of
VT American Century Ultra® Fund'
14.90%
18.89%
- 14.61%
0.69 %
-
5,75%
1/96
VT Putnam Voyager Fund
14.51%
20.28%
- 17.92%
1.14%
-
7.41%
6/95
VantageTrust 500 Stock Index Fund
14.13%
23.72%
- 10.65%
0.38%
-
3.40%
6/97
VantageTrust Broad Market Index Fund
16.43%
25.39%
- 10.45%
1.33%
-
9.38%
10/94
VantageTrust Growth & Income Fund
15.65%
26.15%
- 6.05%
-
-
7.02%
10/98
VT Calvert Social Investment ent Fund
11.14%
23.23%
-
-
-
13.97%
7/02
VT Fidelity Contrafund®
14.69%
16.02%
- 5.60%
5.17 %•
-
9.35%
1/96
VT Fidelity Magellan ®2
12.33%
20.73%
- 11.97%
1.30%
-
5.81%
1/96
VT MFS Large Company Growth Funds
13.84%
16.70%
- 19.29%
-
-
0.40%
10/98
VantageTrust Equity Income Fund
16.10%
21.78%
3.21%
3.98%
-
11.07%
4/94
VT Lord Abbett Large Com•an Value Fund4
Mid /Small Cap Domestic Stock Funds
14.72%
26.32%
_ -
-
- 3.03%
10 00
VantageTrust Aggressive Opportunities Fund
29.09%
34.55%
- 17.44%
4.21%
-
9.64%
10/94
VantageTrust Mid /Small Co Stock Index Fund
25.22%
31.92%
-9.21%
4.82%
-
4.31%
6/97
VT American Century® Value Fundy
13.31%
22.67%
7.81%
7.46%
-
5.64%
9/97
VT Gabelli Value Fund
14.91 %.
28.72%
-0.57%
7.88%
-
11.50%
. 10/95
VT INVESCO Small Company Growth Fund
21.62%
- 27.66%
-
-
-
- 18.60%
10 /00
VT T. Rowe Price® Small Cap Stock Funds
16.07%
24.25%
-
-
-
2.48%
, 10 /00
VT T. Rowe Price® Small Ca. Value Funds
Foreign /World Stock Funds
19.78%
28.19%
-
-
-
15.74%
7 02
VT Janus Adviser Series Worldwide Fund
8.79%
12.30%
-
-
-
6.58%
7/02
VantageTrust International Fund
14.20%
21.30%
- 10.01%
0.49%
-
1.95%
10/94
VantageTrust Overseas Equity Index Fund
17.81%
25.14%
- 9.40%
- 0.41%
-
- 1.21%
6/97
VT Putnam International Growth Fund
11.95%
20.97%
- 10.05%
-
- 1.30%
6 99
Bond /Stable Value Funds
VantageTrust PLUS Fund*
3.91%
4.02%
4.62%
5.03 %'
5.66%
-
1/91
VantageTrust Cash Management Fund **
0,28%
0.49%
2.06%
3.18%
3.65%
-
2/89
VantageTrust US Government Securities Fund
1.75%
2.28%
7.35%
4.95%
5.28%
-
7/92
VantageTrust Core Bond Index Fund
3.49%
5.08%
8.71%
5.80%
5.88%
-
12/74
VT PIMCO Total Return Bond Fund
4.44%
6.76%
-
-
-
8.97%
7/02
VT PIMCO High Yield Bond Fund
16.56%
26.78%
-
-
26.39%
7/02
I C M A R E T I R E M E N T C O R P O R A T I O N
28
The City of Vernon, California
Section 457.Deferred Compensation Plan
Quality Investments
Year to
Annualized Returns (Net of Fees)
as of September 30, 2003
Since
Incept
Fund Name Date
1 Year 3 Year
5 Year
10 Year
Incept
Date
Domestic Hybrid /Lifestyle Funds
Vanta•eTrust Savings Oriented Fund 5.71%
8.30%
2.76%
4.45%
-
6.48%
2 95
Vanta•eTrust Conservative Growth Fund 8.61%
12.08%
0.15%
4.46%
-
6.26%
4 96
Vanta•eTrust Traditional Growth Fund
11.85%
16.73%
-2.95%
4.45%
-
6.51%
4 96
Vanta•eTrust Lon • -Term Growth Fund
15.30%
21.56%
- 5.72%
5.58%
-
6.77%
4 96
Vanta•eTrust All -Es ul Growth Fund
18.01%
25.39%
-
-
-
- 9.22%
10 00
Vanta•eTrust Asset Allocation
14.32%
24.96%
- 4.37%
'1.66%
7.94%
-
12 74
VT Fideli Puritan® Fund
10.67%
18.23%
0.96%
4,39%
-
8.26%
6 95
*Because there is no trading market for investment contracts, PLUS Fund returns consist of yield only. Returns are annualized for
ease of comparison with other stable value investments, The minimum annualized effective yield for the fund for the three -month
period ending 12/31/03 is 3.52 %.
* *Investments In the VantageTrust Cash Management Fund are not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share,
it is possible to lose money by investing in the Fund.
1 American Century BL Ultra are registered trademarks of American Century Services Corporation.
2 Closed to new plans
3Invests solely in MFS Massachusetts Investors Growth Stock Fund.
4Invests solely in the Lord Abbett Affiliated Fund.
5 T. Rowe Price is a registered trademark of T. Rowe Price Group, Inc, all rights reserved. Adviser series fund invests solely in
underlying fund. Adviser series created 03/2000 - fund data provided for underlying fund. Please note that the Adviser Series Fund
and the underlying Fund are two separate and distinct Funds.
Categories are from Morningstar as of 3/31/03 for underlying funds where available. Category for the PLUS Fund was determined by
ICMA -RC based on underlying fund characteristics. Morningstar, Inc. is a global Investment research firm that is not affiliated with
ICMA -RC. Morningstar used as a source for some data.
* This information is being provided for educational purposes only and is not intended to be construed as or relied upon as
investment advice. This information is not intended to be construed as a solicitation for particular product or security. Performance
reflected above represents past performance. Investment returns and principal value of an investment will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their original cost. Past performance is not indicative of future
returns. Individuals are advised to consider any new investment strategies carefully prior to Implementing. Please consult both the
current Vantagepoint Funds prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment Guide, which
contains additional information on management fees, other fund expenses, and investment risks and objectives carefully prior to
investing any money. Vantagepoint securities are distributed by ICMA RC Services LLC, a broker dealer affiliate of ICMA RC,
member NASD /SIPC. ICMA RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002 -4240. 1 -800- 669 -7400.
I C M A R E T I R E M E N T C O R P O R A T I O N
29
The City of Vernon, California
Section 457 Deferred Compensation Plan
Commitment to the Public Sector
About the ICMA Retirement Corporation
The ICMA Retirement Corporation is a not - for - profit corporation that administers retirement
plans for state and local government employers exclusively.
RC was founded through the International City /County Management Association (ICMA) in 1972
with a grant from the Ford Foundation. From the beginning, our sole purpose has been to
provide low -cost, portable retirement plans tailored to the needs of public sector employees.
We administered the first nationally available deferred compensation plan in 1972, and in 1985
we began offering qualified defined contribution plans. The quality of our service is reflected in
our growth: in the past five years the RC program has more than doubled. There are now more
than 625,000 public employees with total assets of approximately $18 billion participating in RC
plans.
RC serves as the investment adviser to the ICMA Retirement Trust (Trust), a separate entity
established in 1983 to provide for the commingled investment of the assets of retirement plans
administered by RC. As an instrumentality of state and local governments, the Trust has
received an exemption from registration with the SEC -but in many ways, it functions like a
registered investment company. The Trust offers a range of funds, all of which have been
designed for retirement plan investment.
On June 21, 2001, the Trust converted its form of organization to a bank trust company to be
known as VantageTrust Company ("Trust Company "). VantageTrust Company sponsors a trust
that is virtually identical to the Retirement Trust.
The Trust Company is a non - depository New Hampshire Banking Corporation governed by a
nine- member Board of Directors, five of whom must be full -time employees of Public
Employers, one of whom, at the time of election, must be a present or former member of the
Executive Board of the International City /County Management Association, and one of whom,
at the time of election, must be a present or former Director of the Retirement Corporation.
Three of the Directors are nominated for election by Public Employers that have adopted the.
Retirement Trust or who have previously adopted the ICMA Retirement Trust, each Public
Employer having one vote.
Participants experienced no change in investment options, services or fees as a result of this
change. The same persons who served on the Board of the Retirement Trust, at the time of
conversion, also served as the directors of VantageTrust Company, immediately following the
conversion.
I C M A R E T I R E M E N T C O R P O R A T I O N
30
The City of Vernon, California
Section 457 Deferred Compensation Plan Commitment to the Public Sector
The RC System
The Retirement Corporation, an independent and not- for - profit corporation with no commercial
affiliations, is one of several associated but legally separate entities:
• The ICMA Retirement Corporation, which serves as investment adviser to the
VantageTrust. RC is not a subsidiary of any corporation.
• The VantageTrust, which holds the pooled retirement investments of participants in RC-
administered 457 and 401 , plans. Participant assets are allocated among the Trust's
investment funds. Employers become eligible to participate in the Trust by Resolution
passed by their governing body. The Trust may not accept contributions in the absence of
such a resolution.
• ICMA -RC Services, LLC, which is the broker - dealer affiliate through which Vantagepoint
securities are distributed. ICMA -RC Services, LLC is a member of the NASD /SIPC.
• The Vantagepoint Funds, which are sponsored by RC, is a SEC- registered "series"
investment company (mutual fund) offering 19 distinct portfolios. Each portfolio has a
different investment objective and strategy. Thirteen of the funds of the VantageTrust each
invest solely in the shares of a corresponding Vantagepoint Fund, with each Vantagepoint
Fund having investment objectives that are identical to those of the investing Trust Fund.
• Vantagepoint Investment Advisers, LLC (VIA), which serves as investment adviser to
The Vantagepoint Funds. VIA is an affiliate of RC.
• Vantagepoint Transfer Agents, LLC (VTA), which serves as transfer agent for The
Vantagepoint Funds. VTA is an affiliate of RC.
Sponsoring Organizations
RC's program is endorsed by the following public sector organizations:
• American Association of Alrport Executives
• American Institute of Certified Planners
• American Planning Association
• American Public Gas Association
• American Public Power Association
• American Public Transit Association
• American Public Works Association
■ American Society for Public Administration
• Building officials and Code Administrators, International
• Government Finance Officers Association
■ International Association of Assessing officers
• International Association of Chiefs of Police
• International Association of Fire Chiefs
• International City/County Management Association
■ International Institute of Municipal Clerks
• International Municipal Lawyers Association
• National Association of Regional Councils
• National League of Cities
• Public Risk Management Association
I C M A R E T I R E M E N T C O R P O R A T I O N
31
The City of Vernon, California
Section 457 Deferred Compensation Plan Commitment to the Public Sector
Vantagepoint Public Employee Memorial Scholarship Fund
RC has established the only competitive scholarship program of its kind serving public
employees.
The Vantagepoint Public Employee Memorial Scholarship Fund assists the children and /or
spouses of deceased public employees who died in the line of duty, who plan to continue to
education in college or vocational school programs. Scholarships are offered each year for full-
time study at an accredited institution of the student's choice.
This scholarship program is administered by Scholarship Management Services, a department of
Citizens' Scholarship Foundation of America, Inc. (CSFA). CSFA is a national nonprofit
educational support and student aid service organization that seeks to involve and assist the
private sector in expanding educational opportunities and encouraging educational
achievement.
I C M A RETIREMENT C O R P O R A T I O N
32
1
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3
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8
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CONTRACT
THIS AGREEMENT is made and entered into and executed in
duplicate originals, either copy of which may be considered and
used as the original hereof for all purposes, and to be
performed in Vernon, California as of the ` rj� day of
} ,),i(Y� Q? , 1989,
BY AND BETWEEN
AND
GREAT -WEST LIFE AND
ANNUITY INSURANCE COMPANY
(hereinafter "Great -West Life ")
3699 Wilshire Blvd., #660
Los Angeles, CA 90010
CITY OF VERNON
A Municipal Corporation
(hereinafter "City ")
4305 Santa Fe Avenue
Vernon, CA 90058
RECITALS
WHEREAS, Great -West life has issued to the City Group
Deferred Compensation Annuity Contract No. 98270 GP dated
December 1, 1988; and
WHEREAS, the City desires to provide an alternative
investment program for its employees participating in the City's
deferred compensation program.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL
COVENANTS, PROMISES AND CONDITIONS HEREINAFTER SET FORTH, THE
PARTIES HERETO AGREE AS FOLLOWS:
1. The Great -West Life Group Deferred Compensation
Annuity Contract No. 98270 GP is attached hereto and
incorporated herein by this reference as though fully set forth
at length and provides the terms and conditions of the
h
A r
2
3
4
5
6
7
8
9
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11
12
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15
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28
investment program offered to the employees of the City by
Great -West Life dated December 1, 1988.
IN WITNESS WHEREOF, the parties hereto have caused
this Contract to be subscribed to on the day, month, and year
first above written.
ATTEST:
BRUCE V. MALKENHORST
City Clerk
APPROVED AS TO FORM:
S2)(21,1 V5( \r-tiz„4_,ty
DAVID B. BREARLE
City Attorney
Resolution No. 5671
Exhibit A
Adopted September 5, 1989
-2-
GREAT -WEST LIFE AND ANNUITY
ANNUITY INSURANCE COMPANY
By S 2AA/ aiinel tp)1Y2 )
B
CITY OF VERNON
A MUNICIPAL CORPORATION
onis C. Malbur Mayor
0- r
Great -West.
LIFE & ANNUITY INSURANCE COMPANY
HOME OFFICE - WICHITA, KANSAS
ADMINISTRATIVE OFFICES
DENVER, COLORADO
Q OLP POLICYHOLDER City of Vernon
GROUP POLICY NUMBER 98270GP
GROUP ANNUITY CONTRACT DATE December 1, 1988
Group Deferred Compensation Annuity, Nbn- Participating
•.The provisions on the following pa?es, together with the Application for this
Group Annuity Contract, are part of this Group Annuity Contract.
For the purposes of this Group Annuity Contract, "Plan" meals the plan and
adoption agreement that the Group Policyholder has designated as the
City of Vernon Deferred Oompensation Plan
Signeo for the Great -West Life & Annuity Insurance Company on the issuance of
the Group Annuity Contract on the Annuity Contract Late.
Secretary Presioent
For the Actuary
This Group Annuity Contract is a legal contract between the Group Policyholder
and the Great -west Life a Annuity Insurance Company. PLEASE READ THIS ANNUITY
CONTRACT CAREFULLY. IT IS A CONTRACT WHICH MAY PROVIDE FOR PAYMENTS OR VALUES
WHICH ARE NOT WJARANTEED AS TO FIXED- DOLLAR AMOJNT BUT MAY VARY ACCORDING TO
THE INVESTMENT EXPERIENCE OF A VARIABLE ANNJITY ACCOUNT.
Group Deferred Compensation Annuity
GDNr'184
TABLE OF CONTENTS
4
DEFINITIONS Page
OWNRSHIP PROVISIONS 7
Ownership of Series Account
Ownership of Group Annuity Contract 7 7
Transfer and Assignment
GENERAL PROVISIONS
8
The Group Annuity Contract 8
Entire Contract 8
The Plan 8
Non - Participating 8
Currency and Payment of Contributions 8
Age 8
Voting Rights and Reports. 9
Notice and Proof
PURCHASE PROVISIONS 10
Commencement and Termination. of Coverage 10
Contributions 10
Allocation of Contributions
CONTRACT VALUE PROVISIONS 11
Variable Contract Value 11
Accumulation Unit 11
Accumulation Unit Value 11
Annuity Unit Value 12
Net Investment Factor. 13
Risk Charge 13
Guaranteed Contract Value 13
Guaranteed Sub - Account Riders 13
Asset Management Fee 13
Variable and Guaranteed Contract Value Provisions 13
Contract Maintenance Charge 13
Transfer Charge
TRANSF ERS 15
Transfer Terms 15
No Receipt of Transferred Amounts
RETIREMENT PROVISIONS 16
Adequate Proof 16
Payment On Retirement
TABLE OF CONTENTS (Continueo)
PROVISIONS RELATING TO AMOUNT PAYABLE ON DEATH, PARTIAL SURRENDER, AND
SURRENDER 17
Amount Payable On Death of Participant 17
Partial Surrender 18
Amount Payable on Partial Surrender 18
Surrender 18
Amount Payable on Surrender 18
Contingent Deferred Sales Charge 18
Contingent Deferred Sales Charge Free Amount 19
Adequate Proof 19
Payment On Death -, Partial Surrender, and Surrender
METHODS OF PAYMENT PROVISIONS 20
Amount To Be Applied 20
Variable Dollar Method of Payment 20
Amount of First Monthly Payment 20
Annuity Units 21
Amount of Monthly Payments After the First 21
Variable Dollar Method of Payment Uptions 22
Fixed Dollar Method of Payment 22
Amount of Payment 22
Fixed Dollar Method of Payment Options 22
How to Elect Method of Payment Option 23
Availability of Options 23
Settlement
CONTRACT MODIFICATION 24
Modification of Tables 24
Modification of Guaranteed Sub - Account Riders, If Any 24
Modification of Offering of Guaranteed Sub- Accounts. 24
Modification of Interest Guarantee Period
CESSATION OF DEPOSITS 25
Options On Date of Cessation of Deposits
TABLE A 26
TABLE B 28
TABLE C 29
TABLED 3 9
TABLE E
GUARANTEED SUB- ACCOUNT RIDERS, IF ANY
DEFINITIONS
Accumulation Period
Accumulation Unit
Annuitant
Annuity Commencement Date
Annuity Payment Period
Annuity Unit
Company
Deposit
Eligible Fund
Group Annuity Contract Date
Group Policyholder
- tne period during which the Participant
is Covered under tnis Group Annuity
Contract prior to the Participant's
Annuity Commencement Date.
• an accounting unit used to determine the
Variable Contract Value before tne
Annuity Commencement Date.
the person upon whose life the payment
of an annuity is based.
the date on which annuity payments
commence under a Method of Payment
Option, which for any Participant is not
later than the first of the month after
the month he/she must retire under the
terms of the Plan, unless earlier
permitted by the Group Policyholder.
the period during which the Participant
is Covered under this Group Annuity
Contract after the Participant's Annuity
Commencement Date.
- an accounting unit used to oeEeriiiine the
dollar value of any Variable Dollar
Annuity Payment after tne First Payment.
the Great -West Life & Annuity Insurance
Company.
includes Contributions, Transfers and
other amounts Depositeo into Guaranteed
or Variable Sub- Accounts.
- a registered management investment
company in which the assets of the
Series Account may be invested.
the effective date indicated by the
Group Policyholder on the Application
for this Group Annuity Contract, or such
other date which is acceptable to the
Company,
the employer of a Participant and the
Applicant for this Group Annuity
Contract
4
DEFINITIONS (continued)
Guaranteed Account
Guaranteed Contract Value
Guaranteed Interest Rate
Guaranteed Sub- Account
Investment Division
Participant
Participant Annuity Account
the portion of this Group Annuity
Contract providing Guaranteed
Sub - Accounts, each having a Guaranteed
Interest Rate and containing fixed
dollar amounts.
the sum of the values of the Guaranteed
Sub-Accounts creditea to the Group
Policyholder in respect of a Participant
under a Participant Annuity Account.
the minimum interest rate applicable to
Guaranteed Sub - Accounts whicn on an
annual effective basis is 4 %.
a subdivision of the Guaranteed Account
having a Guaranteed Interest Rate and
containing fixed dollar amounts. This
subdivision is described in greater
detail in the attached Guaranteed
Sub - Account Riders, if any.
a division of the Series Account
containing the shares of a specific
portfolio of the Eligible Fund. There
is an Investment Division for each
portfolio of the Eligible Fund.
a person in the employ of the Group
Policyholaer on the day the Group
Policyholder has made Application for
Coverage for him/her and who is reported
by the Group Policyholder as having
complied with the terms of the Plan as
to eligibility.
a separate record established in the
name of each Participant which reflects
the total of the Guaranteed and Variable
Contract Values.
Participant Annuity Account Value the sum of the Variable and Guaranteed
Contract Values credited to the Group
Policyholder in respect of a Participant
under a Participant Annuity Account.
Participant Effective Date
the date on which the first Deposit is
credited to a Participant Annuity
Account.
DEFINITIONS (continued)
Payee
Premium Tax
Series Account
Transfer
the Group Policyholder or the person, including
the Participant, designated by it to receive the
value of the Participant Annuity Account.
- the amount of premium tax, if any, charged by a
state or other government authority.
the segregated investment account called
"FUTUREFUNDS Series Account" established by
Great -West Life & Annuity Insurance Company under
Kansas law and registered as a unit investment
trust under the Investment Company Act of 1940,
as amended.
amounts moved from any Sub - Account to another
Sub - Account on one day upon each Written Request
of the Group Policyholder in respect of the
Participant.
Valuation Date the date on which the net asset value of each
Eligible Funo is determines.
Valuation Period the period between the ending of two successive
Valuation Dates.
Variable Contract Value - the sum of the values of the Variable
Sub - Accounts creoiteo to the Group Policyholder
in respect of a Participant under a Participant
Annuity Account.
Variable Sub- Account a sub - division of an Investment Division which
separates Contributions received under tax
qualified arrangements from those received under
non -tax qualified arrangements. Each Variable
Sub- Account has its own Accumulation Unit and
Annuity Unit Value.
Written Request the Request required in the Allocation of
Contributions, Transfers, Surrender, Partial
Surrender, How to Elect Method of Payment Option,
and Cessation of Deposits provisions, the
Contract Value and Retirement Provisions, the
Guaranteed Sub- Account Kiders, if any, and at
other times as required by the Company. It must
be in writing from the Group Policyholder or its
designee and in a form satisfactory to the
Company, and to be effective must be received by
the Company at its Administrative Offices. A
form or direction in lieu of the Written Request
may be accepted by the Company.
OWNERSHIP PROVISIONS
Ownership of Series Account
The Company has absolute ownership of the assets of the Series Account.
Ownership of Group Annuity Contract
Upon the Group Policyholder's Application for this Group Annuity Contract, the
Group Policyholder becomes the owner of the Group Annuity Contract. It alone
has all rights -, remedies and recourses -given in the Group Annuity Contract,
and, while the Group Annuity Contract and the cParticiPaltrel Annuity Account
uets are
held in respect of Participants, there is
the Company and the Participants. While the Group Policyholder may request
the opinion of the Participant on ter�la�yholderamay affecting
the
Participant Annuity Account, the Group.
dictates of its own judgment and discretion.
Subject to the Plan Participation provio, for ach emplayeerfo whom Annuity
Contributions have been made is a Participant
Account is established.
Transfer and Assignment
The interest of the, Group Policyholder in this eGroupcAnnnuit ,
y Contra n
ctmayaynot
be transferred, sold, assigned, pledged, ch g ,
alienated without the prior written consent of the Company.
GENERAL PROVISIONS
The Group Annuity Contract
The Group Annuity Contract is issued by the Company to the Group Policyholder.
Entire Contract
This Group Annuity Contract, its Application, Tables, and Guaranteed
Sub - Account 'Riders., if any, form the entire contract between the Group
Policyholder and the Company. A copy of the Application is attached to the
Group Annuity Contract when issued to the Group Policyholder.
After issue, Modifications to the Group Annuity Contract under the Contract
Modification provisions become part of the Group Annuity Contract.
All statements in the Application, in the absence of fraud, have been accepted
as representations and not as warranties.
Only the President, a Vice- President, or the Secretary of the Company can
Modify or waive any provisions of the Group Annuity Contract.
The Plan
The terms and provisions of the Plan oo not for any purpose form any part of
this Group Annuity Contract and are not binding on the Company.
Notwithstanding the fact that it may have knowledge of the terms of the Plan,
the obligations of the Company are measured and determined solely by the terms
and provisions of this Group Annuity Contract.
Non- Participating
This Group Annuity Contract is non - participating. It is not eligible to share
in the Company's divisible surplus.
Currency and Payment of Contributions
All amounts to be paid to or by the Company must be in the currency of the
United States of America. All Contributions to this Group Annuity Contract
must be made payable to the Company or its designated agent.
Age
If the age of the Participant or Payee has been misstated, the. payments
established for him /her under the Participant Annuity Account will be made on
the basis of his /her correct age.
If payments were too large because of misstatement, the difference with
interest may be deducted by the Company from the next payment or payments. If
payments were too small, the difference with interest may be added by the
Company to the next payment. This interest will be not less than 4% per year.
8
GENERAL PROVISIONS (continued)
Voting Rights and Reports
The Company will vote -- the - shares of an Eligible Fund held in a Variable
Sub - Account of the Investment Division of the Series Account. To the extent
required by law, the Company will vote according to tne instructions of the
Group Policyholder in proportion to its interest in the Variable Sub - Account.
In such event, the Company will send proxy materials and formks) to the Group'
Policyholder for its reply. If no reply is received, the Company will vote
shares of the appropriate Eligible Fund in the same proportion as shares of
the Eligible Fund for which replies have been received.
During the Annuity Payment Period under the Participant Annuity Account, the
number of votes will decrease as the assets held to fund annuity payments
decrease, the Payee will be entitled to Policyholder, ivtproxd all terials provisions
form p s) otherwise provided to the Group
concerning Voting Rights will apply to the Payee of a Variable Dollar Method
of Payment Option.
The Company will furnish the Group Policyholder or the Payee of a Variable
Dollar Method of Payment Option copies of any shareholder reports of the
Eligible Funds and of any other notices, reports or documents required by law
to be furnished to either of them.
Semi- annual reports of the Eligible Funds will be furnished as requires by law
to the Group Policyholder, who shall promptly deliver them to each Participant
or Payee of a Variable Dollar Method of Payment Option. The Company will
furnish the Group Policyholder not less frequently than annually a statement
of each Participant's Participant Annuity Account Value, which -tne Group
Policyholder will promptly deliver o the eepartParticipant. The
enGGroup
Policyholder
may direct the Company to deliver these
Participants.
Notice and Proof
Any notice or demand by the Company to or upon the Group Policyholoer or any
Payee may be given by mailing it to that person's last known address as stated
in the Company's file.
An application, report, request, election, direction, notice or demand by the
Group Policyholder or Payee will be made in a form satisfactory to the
Company. When the Company requires it, the Group Policyholder will obtain the
signature of the Participant's or Payee's- spouse on forms provided by the
Company.
q
The Company may
require adequate proof of the age and death of any Payee
a
before it admits a claim for or pays any payment.
Written materials developed by the Group Policyholder to describe this Group
Annuity Contract must first be approved by tne Company.
9
PURCHASE PROVISIONS
Commencement and Termination of Coverage
The Group Policyholder may make Application for Coverage of any employee if
the Company is then accepting Applications for Coverage under this Group
Annuity Contract, unless a Date of Cessation of Deposits has been declared.
An employee for whom an adequate Application has been made becomes Covered as
a Participant as of the Participant Effective Date. Coverage of a Participant
terminates upon the Group Policyholder's Surrender or Partial Surrender which
results in a Participant Annuity Account Value of $0.
Contributions
Unless a Date of Cessation of Deposits has been aeclared, the Group
Policyholder may from time to time pay Contributions in cash in respect of a
Participant until the earlier of his /her Death, Annuity Commencement Date, or
the Surrender of the Participant Annuity Account.
The amount of Contributions to be paid by the Group Policyholder in respect or
any Participant will be determined by the Group Policyholder.
The Group Policynolder will report the amount paid as Contributions on forms
acceptable to the Company. The Group Policyholder's report is conclusive and
binding on it and any person or entity claiming an interest under the Group
Annuity Contract or any Participant Annuity Account. When the Group
Policyholder's report does not coincide with the Contributions received, the
Company may return them.
Allocation of Contributions
After an adequate application in respect of a Participant has been made,
Contributions, less Premium Tax, if any, will be Allocated in the Participant
Annuity Account when received by the Company at its Administrative Offices.
Contributions in respect of the Participant will be Allocated among any number
of currently offered Variable and Guaranteed Sub - Accounts in accordance with
the latest recorded Written Request of the Group Policyholder in respect of
the Participant.
The Allocation of Contributions may be Changed at any time upon the Company's
receipt at its Administrative offices of the Written Request of the Group
Policyholder in respect of the Participant. A Change of Allocation will be
effective for Contributions which are received after the Company's receipt and
recording of the Change.
CON1RACT VALUE PROVISIONS
Variable Contract Value
The Variable Contract Value in respect of the Participant on any date during
the Accumulation Period will be the sum of the values of the Variable
Sub- Accounts of the Series Account held in respect of the Participant.
The value of a Group Policyholder's interest in a Variable Sub- Account in
respect of a Participant will be determined by multiplying the number of
Accumulation Units held in respect of the Participant for that Variable
Sub - Account by the Accumulation Unit Value for that Variable .Sub- Account.
Accumulation Unit
Contributions and Transfers received at the Administrative Offices of the
Company before the close of a Valuation Date will be allocated as requested
and applied as of that date, otherwise as of the next Valuation Date, to
provide Accumulation Units of the selected Variable Sub - Accounts of the Series
Account.
The number of Accumulation Units credited in respect of each Participant to a
Variable Sub - Account will be determined by dividing the amount of the
Contributions and Transfers then applied to such Variable dub- Account by the
Accumulation Unit Value for that Variable Sub- Account on the Valuation Date on
which the Contributions were allocated and Transfers were made.
The number of Accumulation Units will not change because of a later change in
the Accumulation Unit Value, but the Accumulation Unit Value will vary to
reflect the investment experience of the Variable Sub- Account.
Accumulation Unit Value
The initial Accumulation Unit Value of each Variable - Sub - Account was
established at $10 on the date a Deposit was first made to the Variable
Sub - Account.
The Accumulation Unit Value of a Variable Sub - Account on any subsequent
Valuation Date is equal to the Accumulation Unit Value of that Variable
Sub- Account as of the immediately preceding Valuation Date multiplied by the
Net Investment Factor for the Valuation Period ending on the Valuation Date on
which the Accumulation Unit Value is being determined.
The Accumulation Unit Value may increase, decrease, or remain unchanged as a
result of the value of the Net Investment Factor.
Annuity Unit Value
The initial Annuity Unit Value of each Variable Sub - Account was established at
$1 on the date a Deposit was first made under a Variable Annuity Method of
Payment to the Variable Sub- Account(s) •
CONTRACT VALUE PROVISIONS (continued)
Variable Contract Value (continued)
Annuity Unit Value (continued)
The Annuity Unit Value of any Variable Sub - Account on any subsequent Valuation
Date is equal to the Annuity Unit Value for the immediately preceding
Valuation Date multiplied by the Net Investment Factor for that Variable
Sub- Account for the Valuation Period ending on the Valuation Date on which the
Annuity Unit Value is being determined, and multiplying the result by a factor
of .999905 to neutralize the assumed investment rate of 3.5% per year used in
the applicable Table for Variable Dollar Method of Payment Options 1, 2, 3,
and 4.
Net Investment Factor
The Net Investment Factor for any Variable Sub - Account for any Valuation
Period is determined by dividing (a) by (b), and subtracting (c) from the
result where:
(a) is the net result of:
(1)
the net asset value per share of the Eligible Fund shares held in
the Variable Sub- Account determined as of the end of the current
Valuation Period, plus
(ii) the per share amount of any dividend (or, if applicable, capital
gain distributions) made by the Eligible Fund on shares held in
the Variable Sub - Account if the "e x- divieend" date occurs during
the current Valuation Period, minus or plus
(iii) a per unit charge or credit for any taxes incurred by or reserved
for in the Variable Sub - Account, which is determined by the
Company to have resulted from the investment operations of the
Variable Sub- Account.
(b) is the net result of:
(i) the net asset value per share of the Eligible Fund shares held in
the Variable Sub - Account determined as of the end of the
immediately preceding Valuation Period, minus or plus,
the per unit charge or credit for any taxes incurred by or
reserved for in the Variable Sub - Account for the immediately
preceding Valuation Period.
(c) is a factor representing the Risk Charge deducted from each Variable
Sub- Account on a daily basis. Such factor is equal to of 1.25% on an
annual basis of the daily net asset value of each Variable Sub - Account.
The Net Investment Factor may be greater than, less than, or equal to one.
Therefore, the Accumulation Unit Value may increase, decrease or remain
unchanged.
CON1RACT VALUE PROVISIONS (continued)
Variable Contract Value (continued)
Net Investment Factor (continued)
The per share amount of any dividend referred to in paragraph (a)tii) includes
a deduction for an investment advisory fee. This fee compensates the
investment adviser for services provided to the Eligible Fund. The fee may
differ between Eligible Funds and may be renegotiated each year, but will
never exceed an annual rate of 1.00% of the aggregate average daily net assets
of the Eligible Fund.
Risk Charge
The Company will deduct the Risk Charge for expense and mortality guarantees
in the calculation of the Net Investment Factor. This Charge is equal to
1.25% on an annual basis of the daily net asset value of each Variable
Sub - Account. This deduction is made daily.
Guaranteed Contract Value
The Guaranteed Contract Value of a Participant Annuity Account on any date
during the Accumulation Period will be the sum of the values of the Guaranteed
Sub — Accounts credited to such Participant Annuity Account.
The Company may offer one or more Guaranteed Sub - Accounts into which
Contributions will be Deposited at the Written Request of the Group
Policyholder in respect of the Participant in accordance witn the Allocation
of Contributions provisions.
Guaranteed Sub - Account Riders
The computation of the value of a Guaranteed Sub - Account is described in
greater detail in the attached Guaranteed Sub - Account Riders, if any.
Asset Management Fee
On the first day of each Calendar Year an Asset Management Fee to be assesseo
against Guaranteed Contract Values will be declared by the Company. The
amount to be deducted from the Guaranteed Contract Values will be determined
and applied by the Company on the first day of each calendar quarter.
Variable and Guaranteed Contract Value Provisions
The following Charges are applicable to the Variable and Guaranteed Contract
Values.
Contract Maintenance Charge
On the first day of each calendar year, a Contract Maintenance Charge of not
more than $60 annually will be deducted from the Participant Annuity Account.
If a Participant Annuity Account is established in respect of a Participant
after that date, a Contract Maintenance Charge will be deducted on the first
day of the next quarter and will be pro - rated for the year remaining. No
refund of this Charge will be made.
- 13 -
CONTRACT VALUE PROVISIONS (continued)
Variable and Guaranteed Contract Value Provisions (continued)
Contract Maintenance Charge (continued)
The deduction will be pro -rated among the Variable and Guaranteed- Sub - -Accounts
based upon their Variable and Guaranteed Sub - Account values on the date of
deduction. Whenever a deduction for a Contract Maintenance Charge is to be
made from a Variable Sub- Account, the Company will cancel Accumulation Units
having a total value equal to the amount of the deduction.
Transfer Charge
With the exception of the first two Transfers in a calendar year, a Transfer
Charge of $10 per Transfer will be deducted from the Participant Annuity
Account after the Transfer.
TRANSFERS
The Group Policyholder in respect of the Participant may by Written Request
Transfer amounts within and between the currently offered Variable and
Guaranteed Sub - Accounts.
Transfer Terms
The following provisions will apply to any Transfer:
a Transfer will take effect on the later of the date Elected or the date
the Written Request is received at the Administrative Offices of the
Company.
• if a Transfer is made within 30 days of the Annuity Commencement uate, the
Company may delay the Annuity Commencement Date - -by 30 days.
if a Participant dies prior to the Annuity Commencement Date, one Transfer
may be made after the Death of the Participant by the Group Policyholder
in respect of the Payee to effect the Election of a Method of Payment
Option.
with the exception of the first two Transfers in a calendar year, a
Transfer Charge of $10 will be deducted.
• when the Company requires it, the Group Policyholder in respect of the
Participant or the Payee will execute forms provided by the Company as
necessary to the requested Transfer.
no Transfers are permitted after the Annuity Commencement Date.
• a Transfer will be subject to terms described in greater detail in the
attached Guaranteed Sub - Account Riders, if any .
No Receipt of Transferred Amounts
No Transfer made within these Transfer Provisions will result in the
Participant's receipt of the Transferred amounts, which shall continue to be
held under the_ Participant Annuity Account.
RETIREMENT PROVISIONS
On the Company's receipt of the Written Request at least 30 days before the
Annuity Commencement Date, the Group Policyholder in respect of the
Participant may in the Written Request:
• Elect or Change a Method of Payment Option.
• make a Partial Surrender or Surrender.
• Elect or-Change the Participant's Annuity Commencement Date to any future
date which is not later than the first of the month after the month the
Participant must retire under the terms of the Plan. If any Annuity
Commencement Date would be less than 30 days from the date that the
Written Request-is-received, the Company may delay the Annuity
Commencement Date Elected by 30 days.
• if the Group Policyholder in respect of the Participant has failed to
Elect a Method of Payment Option within 30 days of his/her Annuity
Commencement Date, the Company will pay the Group Policyholder in respect
of the Participant a Variable Life Annuity with 10 Year Guaranteed Period
from the Variable Contract Value and a Fixed Life Annuity with 10 Year
Guaranteed Period from the Guaranteed Contract Value.
Adequate Proof
The Company is entitled to require the receipt of adequate proof of age,
death, or any other event or contingency, or to establish the fact that a
benefit has become payable under the provisions of the Plan, prior to making
any payment under this Group Annuity Contract.
Payment On Retirement
Payment under the Retirement Provisions will only be made if then available to
the Participant under the terms and provisions of the Plan as determined by
the Group Policyholder, and will only be made to the Group Policyholder or to
the order of the person designated in the Written Request by the Group
Policyholder to receive payment.
PROVISIONS RELATING TO AMOUNT PAYABLE ON DEATH, PARTIAL SURRENDER, AND
SURRENDER
Amount Payable On Death of Participant
If the Participant dies before the Annuity Commencement Date, the Amount
Payable on Death will be:
(a) where Death occurs before the Participant's 70th birthday, the greater of:
(i) the Participant Annuity Account Value, less Premium Tax, if any,
and
(ii) the sum of Contributions paid to, less any Partial Surrenders made
from, the Participant Annuity Account, less Premium Tax, if any.
(b) where Death occurs on or after the Participant's 70th birthday, the
Participant Annuity Account Value, less Premium Tax, if any.
The Payee of an Amount Payable on Death may Elect that payment be made under
the Methods of Payment Provisions, a combination of the Partial Surrender and
Methods of Payment Provisions, or under the Surrender Provisions. If the
Payee Elects either a Partial Surrender or the Surrender of the Participant
Annuity Account, the Contingent Deferred Sales Charge of the Partial Surrender
or Surrender provisions will not apply,. The Election of the Payee must be
made not later than 60 days after the date the Company receives Adequate Proof
of the Participant's Death. If no Election is made, a single payment will be
made under the Surrender provisions to the Payee. The Contingent Deferred
Sales Charge will not apply to this single payment.
Partial Surrender
By Written Request the Group Policyholder in respect of the Payee may make a
Partial Surrender of the Participant Annuity Account. The Partial Surrender
will take effect on the later of the date Elected and the date the Written
Request is received at the Administrative Offices of the Company. Subject to
the Amount Payable On Death of Participant provision, a Written Request for
Partial Surrender must be received by the Company at least 30 days before the
Annuity Commencement Date.
The Group Policyholder in respect of the Participant must in the Written
Request Elect the Variable or Guaranteed Sub- Account(s), or a combination of
them, from which the Partial Surrender is made. If an adequate Election is
not made, the Written Request will be returned to the (Group Policyholder, and
the Partial Surrender in respect of the Payee will not be made.
PROVISIONS RELATING TO AMOUNT PAYABLE ON DEATH, PARTIAL SURRENDER, AND
SURRENDER (continued)
Amount Payable On Partial Surrender
The amount payable on Partial Surrender will be paid in one sum under the
Partial Surrender provisions equal to:
(a) the amount requested as the Partial Surrender as of the effective date of
the Partial Surrender, less
(b) the Contingent Deferred Sales Charge, if any, less
(c) Premium Tax, if any.
Surrender
By Written Request the Group Policyholder in respect of the Payee may
Surrender the Participant Annuity Account. The Surrender will take effect on
the later of the date Elected and the date the Written Request is received at
the Administrative Offices of the Company. If an adequate Written Request is
not made, the Written Request will be returned to the Group Policyholder and
the Surrender will not be made. Subject to the Amount Payable On Death of
Participant provision, a Written Request for Surrender must be received by the
Company at least 30 days before the Annuity Commencement Date.
Amount Payable on Surrender
The Amount Payable on Surrender may be Applied under the Methods of Payment
Provisions or will be paid in one sum under these Surrender provisions equal
to:
(a) the Participant Annuity Account Value as of the effective date of the
Surrender, less
(b) the Contingent Deferred Sales Charge, if any, less
(c) Premium Tax, if any.
Contingent Deferred Sales Charge
Subject to the Amount Payable On Death of Participant provision, on any
Partial Surrender or the Surrender of the Participant Annuity Account a
Contingent. Deferred Sales Charge will be deducted from the Amount Surrendered.
The Contingent Deferred Sales Charge applicable to any Partial Surrender or
the Surrender will be equal to 6% of the Amount Surrendered in excess of the
Contingent Deferred Sales Charge Free Amount, if any, and is limited so that
the amount then charged will not cause the cumulative total of all Contingent
Deferred Sales Charges charged in respect of the Participant under his /her
Participant Annuity Account to exceed 6% of the Contributions made to his /her
Participant Annuity Account within 72 months prior to the effective date of
the Partial Surrender or the Surrender.
PROVISIONS RELATING TO AMOUNT PAYABLE ON DEATH, PARTIAL SURREWDR, AND
SURRENDER (continued)
Contingent Deferred Sales Charge Free Amount
The Amount of the Contingent Deferred Sales charge Free Amount is equal to 10%
of the Participant Annuity Account Value at December 31 of the calendar year.___
prior to the year in which the Amount is Surrendered.
Only one Contingent Deferred Sales Charg FeAmounthistaia available
calenin respect
of a Participant in each calendar year beginning
after he /she is Covered under this Group Annuity Contract. The Contingent
Deferred Sales Charge Free Amount will be Applied on the tSurreodet or that
first Partial Surrender made under the Participant
year for the payment of benefits as a result of financial hardship, as defined
in the Plan and approved by the Group Policyholder.
Adequate Proof
The Company is entitled to require the receipt of
fsadequatetproofctftaat,a
death, or any other event or contingency, or
benefit has become payable under the provisions of the Plan, prior to making
any payment under this Group Annuity Contract.
Payment On Death, .Partial Surrender, and Surrender
Payment under any of the Provisions Relating to made oufttPePayable On Death, the
Partial Surrender, and Surrender will only g
Payee under the terms and provisions of the Plan as determined by the Group
Policyholder, and will only be made the
Request Group
byotheyG�ouprPolicyholde�rtor
of the person designated in the Written
receive payment.
METHODS OF PAYMENT PROVISIONS
One of the Variable or Fixed Dollar Methods of Payment Options or a
combination of them may Elected under the Methods of Payment Provisions.
Amount To Be Appl ied
The Amount to be Applied under the Methods of Payment Provisions is the
Participant Annuity Account Value less Premium Tax, if any.
If a Variable Dollar Method of Payment Option is Elected, the Amount to be
Applied is the Variable Contract Value as of the date the Amount of the First
Monthly Payment is determined.
If a Fixed Dollar Method of Payment Option is Elected, the Amount to be
Applied is the Guaranteed Contract Value as of the Pnnuity Commencement Date.
If the Group Poli
of the Guaranteed
Option, or any or
of Payment Option
Commencement Date
Transfers.
cyhol der in respect of the Payee Elects o App y a y
Contract Value to a Variable Dollar Method of Payment
all of the Variable Contract Value to a Fixed Dollar Method
, a Transfer(s) must be made prior to the Annuity
• The Transfer(s) must comply with the provisions on
Variable Dollar Method of Payment
The following Variable Dollar Method of Payment Options are available. They
are subject to the following provisions
Amount of First Monthly Payment
The First Monthly Payment under a Variable Dollar Method of Payment Option
will be based on the Variable Contract Value credited in respect of the
Participant Annuity Account on the 5th Valuation Date preceding the Annuity
Commencement Date. It will be determined by applying the appropriate rate
from the applicable Table to the Amount Applied under the Option. The First
Monthly Payment will be the sum of the variable dollar annuity payments for
each Variable Sub- Account.
Annuity Units
The number of Annuity Units for each Variable Sub - Account to be credited in
respect of the Participant Annuity Account will be determined by dividing the
portion of the First Monthly Payment to be taken from such Sub - Account by the
Sub- kcount's Pnnuity Unit Value on the 5th Valuation Date preceding the date
the First Payment is due for which the number of Annuity Units is being
computed. The number of Annuity Units for a Variable Sub - Account remains
fixed during the Annuity Payment Period.
METHODS OF PAYMENT PROVISIONS (continued)
Amount of Monthly Payments After the First
Monthly Payments After the First under a Variable Dollar Method of Payment
Option will vary in amount from time to time depending upon the investment
experience of the Variable Sub - Accounts of the Series Account.
The dollar amount of each variable dollar annuity payment to the Participant
or Payee after the first for each Variable Sub - Account is determined by
multiplying (a) the number of Sub - Account Annuity Units credited to the
Participant Annuity Account by (b) the Sub - Account Annuity Unit Value on the
5th Valuation Date preceding the date the annuity payment is due. The total
dollar amount of each variable dollar annuity payment will be the sum of the
variable dollar annuity payments for each Variable Sub - Account.
The Company guarantees that the dollar amount of each Payment After the First
will not be affected by variations in expenses or mortality experience.
Variable Dollar Method of Payment Options
Option 1: Variable Life Annuity with Guaranteed Period
The Company will pay a monthly payment for the guaranteed Annuity Payment
Period Elected. Payments will continue for the lifetime of the Payee. The
guaranteed Annuity Payment Period elected may be 5, 10, 15 or 20 years. The
provision on Settlement applies to amounts payable after the death of the
Payee. Table A is applicable to this Option.
Option 2: Variable Life Annuity
The Company will pay a monthly payment during the Payee's lifetime. Table A
is applicable to this Option.
Option 3: Joint and One -Half Survivor Variable Annuity
A joint and one -half survivor variable annuity provides a variable monthly
payment to an Annuitant for his /her lifetime; thereafter, and upon receipt by
the Company of- adequate proof of the Annuitant's death, one -half of the
variable payment amount continues to a designated Payee, if living, and
terminates upon his /her death. Table B is applicable to this Option.
Option 4: Any Other Form
The Company will pay any other form of Variable Annuity which is acceptable to
it.
METHDDS OF PAYMENT PROVISIONS (continued)
Fixed Dollar Method of Payment
The following Fixed Dollar Method of Payment Options are available. They are .
subject to the following provisions.
Amount of Payment
Payments under a Fixed Dollar Method of Payment Option are guaranteed by the
Company as to dollar amount throughout the Annuity Payment Period.
The .Amount of the Payment under any Fixed Dollar Method of Payment Option will
be determined by applying the Company's then current non - participating group
single premium rates for this class of group annuity contracts to the Amount
Applied under the Option. Those current rates will not be less than the rate
obtained from the Table which is Applicable to the Elected Option.
Fixed Dollar Method of Payment Options:
Option 1: Income of Specified Amount
The Company will pay an income, at 12 -, 6 -, 3 -, or 1- month intervals, of an
amount Elected by the Payee for an Annuity Payment Period of not less than 36
months nor more than 240 months. The provision on Settlement applies to
amounts payable after the death of the Payee. Table C is applicable to this
Option.
Option 2: Income for a Specified Period
The Company will pay an income, at 12 -, 6 -, 3 -, or 1 -month intervals, for the
number of years Elected by the Payee for an Annuity Payment Period of not less
than 36 months nor more than 240 months. The provision on Settlement applies
to amounts payable after the death of the Payee. Table C is applicable to
this Option.
Option 3: Fixed Life Annuity with Guaranteed Period
The Company will pay a monthly payment for the guaranteed Annuity Payment
Period Elected. Payments will continue for the lifetime of the Payee. The
provision on Settlement applies to amounts payable after the death of the
Payee. Table D is applicable to this Option.
The guaranteed Annuity Payment Period elected may be 5, 10, 15 or 20 years,
may be a period referred to as "Installment Refund ". Unaer the Installment
Refund period, payments will be made until the total of the Payments made
equals the Amount Applied.
Option 4: Fixed Life Annuity
The Company will pay a monthly payment during the Payee's lifetime. Table D
is applicable to this Option.
or
METHODS OF PAYMENT PROVISIONS (continued)
Fixed Dollar Method of Payment Options: (continued)
Option 5: Joint and One -Half Survivor Fixed Annuity
A joint and one -half survivor fixed annuity provides a fixed monthly -- payment
to an Annuitant for his /her lifetime; thereafter, and upon receipt by the
Company of adequate proof of the Annuitant's death, one -half of the fixed
payment amount continues to a designated Payee, if living; and terminates upon
his /her death. Table E is applicable to this Option.
Option 6: Any Other Form:
The Company will -pay any other form of Fixed Annuity which is acceptable to it.
How to Elect Method of Payment Option
The Written Request of the Group Policyholder Election in respect
a Method tthe Participant or
Payee is required to Elect, or Change the
Option and must be received by the Company at least 30 days prior to the
Annuity Commencement Date, or, if the Participant dies prior to the Annuity
Commencement Date, within 60 days of the date the Company receives Adequate
Proof of the Participants Death.
Availability of Options
If any payment to be made under the Elected Option will be less than $50, the
Company may make the payments in the most frequent interval which produces a
payment of at least X50.
The minimum Amount that may be Applied under a Variable or Fixed Dollar Method
of Payment Option is $ 2,000. If the amount is less than 32,000, the Company
may pay it in one sum.
The maximum Amount that may be Applied ied under any Uption is $1,000,000. For
the Application of any greater Amount, the Company's consent is required.
Settlement .
If the Payee has received payments or was to receive
yet commenced under Variable Dollar Method of Payment
Fixed Dollar Method of Payment Options 1, 2, 3 or 6,
payable under the Option Elected will be paid to the
other Payee designated by the Group Policyholder,
payments which had not
Options 1 or 4, or under
any remaining amounts
Group Policyholder or
CONTRACT MODIFICATION
This Group Annuity Contract may be Modified at any time by written agreement
between the Company and the Group Policyholder.. No such Modification will,
without the written consent of the Group Policyholder, affect the terms,
provisions, or conditions of this Group Annuity Contract which are or may be
applicable to Contributions paid in respect of Participants prior to the date
of such Modification.
However, the. Company may at any time and without the consent of the Group
Policyholder or any Participant or other person, but upon 30 days' written
notice to the Group Policyholder, Modify this Group Annuity Contract in any
respect to conform it to changes in tax or other law, including applicable
regulations or rulings.
Modification of Tables
The Company may at any time and without the consent of the Group Policyholder
or any Particiant or other person, but upon 30 days written notice to the
Group Policyholder, Modify Tables A, B, C, D, and E, or any of them. However,
no such Modification will affect the terms, provisions or conditions of the
Group Annuity Contract which are or may be applicable to Contributions paid in
respect of Participants prior to the date of such Modification.
Modification of Guaranteed Sub - Account Riders, If Any
Any Guaranteed Sub - Account Rider may be Modified at any time by written
agreement between the Company and the Group Policyholder. No such
Modification will, without the written consent of the Group Policyholder,
affect the terms, provisions, or conditions of the Rider which are or may be
applicable to Contributions paid in respect of Participants prior to the date
of such Modification.
Modification of Offering of Guaranteed Sub - Accounts
Notwithstanding the other Contract Modification provisions, the Company may
offer or cease offering Guaranteed Sub - Accounts to receive Deposits. No such
offering or cessation of offering shall affect the terms, provisions, or
conditions which are or may be applicable to Contributions paid to any
Guaranteed Sub - Account which is no longer offered by the Company. The Company
will periodically notify the Group Policyholder in respect of Participants of
the current offering of Guaranteed Sub - Accounts.
Modification of Interest Guarantee Period
Notwithstanding the other Contract Modification provisions, the Interest
Guarantee Period of amounts Deposited into Guaranteed Sub - Accounts, if any,
may be Modified by the Company in accordance with the Interest Guarantee
Period Modification provisions as described in greater detail in the attached
Guaranteed Sub- Account Riders, if any.
CESSATION OF DEPOSITS
Upon 60 days' written notice to the other, the Group Policyholder or the
Company may declare that, as from the date stated in the notice (that date
being called a Date of Cessation of Deposits), no further Deposits will oe
made to certain or all 'Sub - Accounts of the Group Annuity Contract.
If a Date of Cessation of Deposits has been declared for certain Sub - Accounts,
the Group Policyholder in respect of the Participant may by Written Request
make a Change of Allocation of •his/her Contributions. When no Change of
Allocations is received, the Company may return all Contributions affected by
the declaration of the Date of Cessation of Deposits, or allocate such
Contributions to a currently offered Guaranteed Sub-Account.
After the Date of Cessation of Deposits declared in respect of all
Sub - Accounts, no Participant Annuity Account will be established
Options on Date of Cessation of Deposits
Upon declaring the Date of Cessation of Deposits for all Sub- Accounts or upon
receiving notice of its declaration by the Company, the Group Policyholder may
by Written Request Elect one of the following Cessation Options. If the Group
Policyholder has not Elected a Cessation Option within 30 days of the Date of
Cessation, Cessation Option (1) will be deemed to have been Elected.
Cessation Option (1) Maintenance of Each Participant Annuity Account Value:
The Company will maintain each Participant Annuity
Account Value until it is Applied or paid under the
Group Annuity Contract.
Cessation Option (2) Installment Settlement of Guaranteed Contract Values:
The Company will pay the sum of the Variable Contract
Values in respect of Participants as of the Date of
Cessation of Deposits to a person designated in writing
by the Group Policyholaer as the successor insurer of
the Plan or to the Group Policyholder within 30 days of
the date the Cessation option is Elected.
The Company will pay the sum of the Guaranteed Contract
Values in respect of Participants as of the Date of
Cessation of Deposits to a person designated in Writing
by the Group Policyholder as the successor insurer: of
the Plan or to the Group Policyholder in 20 equal
quarterly installments. The amount of the installments
will be the amount determined by the Company on the date
of the first such payment, but not'`less than $514.80 for
each $10,000 of Guaranteed Contract Values. The first
payment will be made 30 days after the date the
Cessation Option is Elected.
TABLE A - Variable Life Annuity
Monthly Payment for Each $1,000
of Participant Annuity Account Value
Age of Without With Guaranteed Period
Payee Guaranteed Period 5 Years 10 Years 15 Years 20 Years
50 3.83 3.83 3.82 3.80 3.78
55 4.13 4.12 4.10 4.07 4.02
60 4.52 4.51 4.48 4.41 4.31
65 5.06 5.04 4.97 4.84 4.64
70 5.82 5.77 5.61 5.33 4.94
75 6.93 6.80 6.41 5.82 5.19
If payments commence on any other date than the exact age of the Payee as
shown above, the amount of the monthly payment shall be determined by the
Company on the actuarial basis used by it in determining the above amounts.
TABLE B - Joint and One -Half Survivor Variable Annuity
Monthly Payment for Each $1,000
of Participant Annuity Account Value
Age of If Designated Payee Is Age
Annuitant 50 55 60 65 70
75
50 3.72 3.75 3.78 3.80 3.81 3.82
55 3.92 3.98 4.02 4.06 4.08 4.10
60 4.16 4.25 4.33 4.39 4.44 4.47
.65 4.45 4.58 4.70 4.81 4.89 4.95
70 4.79 - '4.96 5.14 5.32 5.47 5.59
75 5.18 5.42 5.67 5.94 6.20 6.4[
If payments commence on any other date than the exact age of the Annuitant or
designated Payee as shown above, the amount of the monthly payment snall be
determined by the Company on the actuarial basis uses by it in determining the
above amounts.
TABLE C - Income of Specified Amount
- Income of a Specified Period
Monthly Payment for Each $1,000
of Participant Annuity Account Value
Years Payment
3 27.44
4 20.93
5 17.03
6 14.43
7 12.57
8 11.18
9 10.11
10 9.24
11 8.54
12 7.96
13 7.46
14 7.04
15 6.68
16 6.36
17 6.08
18 5.83
19 5.61
20 5.41
To determine the payment for other frequencies of payment, multiply the above
monthly payment by the following factors:
Quarterly payment
Semi - annual payment
Annual payment
Factor
2.99
5.96
11.81
If payments are for an amount or duration different than that outlined above,
the Company will determine the proper amount or duration using the actuarial
basis used to determine the above Table.
TABLE D - Fixed Life Annuity
Monthly Payment for Each $1,000
of Participant Annuity Account Value
Age of Without With Guaranteed Period
payee Guaranteed Period 5 Years 10 Years 15 Years 20 Years
50 3.83 3.83 3.82 3.80 3.78
55 4.13 4.12 4.10 4.07 4.02
60 4.52 4.51 4.48 4.41 4.31
65 5.06 5.04 4.97 4.84 4.64
70 5.82 5.77 5.61 5.33 4.94
75 6.93 6.80 6.41 5.82 5.19
If payments commence on any other date than the exact age of the Payee as
shown above, the amount of the monthly payment shall be determined by the
Company on the actuarial basis used by it in determining the above amounts.
TABLE E Joint and One -Half Survivor Fixed Annuity
Monthly Payment for Each $1,000
of Participant Annuity Account Value
Age of If Designated Payee Is Age
Annuitant 50 55 60 65 70 75
50 3.72 3.75 3.78 3.80 3.81 3.82
55 3.92 3.98 4.02 4.06 4.08 4.10
60 4.16 4.25 4.33 4.39 4.44 4.47
65 4.45 4.58 4.70 4.81 4.89 4.95
70 4.79 4.96 5.14 5.32 5.47 5.59
75 5.18 5.42 5.67 5.94 6.20 6.42
If payments commence on any other date than the exact age of the Annuitant or
designated Payee as shown above, the amount of the monthly payment shall be
determined by the Company on the actuarial basis used by it in determining the
above amounts.
DAILY INTEREST GUARANTEE FUND
GUARANTEED SUB - ACCOUNT RIDER
ATTACHED TO AND FORMING PART OF
THE CROUP ANNUITY CONTRACT
The Daily Interest Guarantee Fund is a Guaranteed Sub- Account. Contributions—
may be _Deposited into the Daily Interest Guarantee Fund at' any time. Interest
will be earned on the Daily Interest Guarantee Fund value and compounded
daily. The Credited Interest Rate may change daily but on an annual effective
basis will not be less than the Guaranteed Interest Rate.
Value of Daily Interest Guarantee Fund
The value of the Daily Interest - Guarantee Fund in respect of the Participant
will be determined by adding his /her Guaranteed Sub- Account Contributions,
interest, and Transfers from other Guaranteed Sub- Accounts and from Va iaole
Sub - Accounts, and subtracting his /her Partial Surrenders, Surrenders, Amounts
Payable on Death, Amounts Applied under a Method of Payment Option, Transfers
to other Guaranteed Sub- Accounts and to Variable Sub- Accounts,
Charges, Contract Maintenance Charge, Asset Management Fee, and Premium Tax.
This Rider, unless and until Modified, forms part of the Group Annuity
Contract.
Daily Interest Guaranteed Fund Riaer
GUPRANTEED CERTIFICATE FUND
GUARANTEED SUB - ACCOUNT RIDER
ATTACHED TO AND FORMING PART OF THE GROUP ANNUITY CONTRACT
The Guaranteed Certificate Fund is a Guaranteed Sub - Account, whereby Credited
Interest Rates, not less than the Guaranteed Interest Rate, are credited to
Deposits held for varying Interest Guarantee Periods. The Company may offer
Certificates to the Group Policyholder who may by Written Request Allocate any
Deposit in respect of the Participant to any one Certificate. The Group
Policyholder in respect of the Participant may Allocate Deposits only to those
Certificates currently being offered by the Company.
If the Group Policyholder in respect of the Participant Allocates
Contributions to Certificates not currently offered by the Company, the
Company may return such Contributions, Allocate such Contributions to a
currently offered Certificate, or Allocate such Contributions to another
currently offered Guaranteed Sub- Account.
DEF IN IT IONS
Cert i f i cates
Term
represents the amount Depositea into the
Guaranteed Certificate Fund under each
Interest Guarantee Period. Each Certificate
has its own interest rate and Term.
the duration of the Certificate which begins .
on the first day of the calendar quarter
following the date of the Deposit and ends on
the date specified by the Company. The number
of Terms available may be limitea by the
Company.
Certificate Maturity Date the last day of the Term.
Interest Guarantee Period
the period from the date of the Deposit to the
Certificate Maturity Date.
Credited Interest Rate
Subject to the provisions on Application of Certificate on Partial Surrender,
Surrender, or Retirement, a Deposit to the Guaranteed Certificate Fund will
earn a Credited Interest Rate for the Certificate's Interest Guarantee
Period. The Credited Interest Rate will be compounded daily, and on an annual
effective basis will not be less than the Guaranteed Interest Rate.
Certificate Maturity
Prior to the Certificate Maturit
Sub - Account into which the value
Matiri ty Date. The Guaranteed S
Guaranteed Certificate Fund or a
y Date, the Company will offer a Guaranteed
of the Certificate will be Deposited on its
ub- Account so offered may be either the
nother Guaranteed Sub-Account.
Guaranteed Certificate Fund Rider 1
GAIANTEED CERTIFICATE FUND SUB- ACCOUNT RIDER (continued)
If the Guaranteed Certificate Fund is offered, the value of the Certificate on
its Maturity Date will establish a new Certificate which has its own interest
rate and Term. The Credited Interest Rate of this new Certificate may be
higher or lower than the .Credited Interest Rate of any other Certificate or
Deposit.
If another Guaranteed Sub - Account is offered, the value of the Certificate on
its Maturity Date will be Deposited into that Guaranteed Sub - Account. The
Credited Interest Rate of this Deposit may be higher or lower than the
Credited Interest Rate of any other Deposit.
The Participant may Elect by Written Request to Transfer the value of the
Certificate on.its Maturity Date.
Interest Guarantee Period Modification
On 30 days' written notice to the Group Policyholder in respect of the
Participant the Company may Modify the Interest Guarantee Period of amounts
previously Deposited into the Guaranteed Certificate Fund.
If such Modification is made, the Group Policyholder in respect of the
Participant may, within 30 days of notification, by Written Request Elect the
Transfer or Surrender of any or all of these amounts without incurring the .
Contingent Deferred Sales Charge, and interest will be applied to the date of
Transfer or Surrender at the Credited Interest Rate applicable prior to the
date of Modification.
Transfers
The following provisions will apply to the Transfer of amounts to or froa> the
Guaranteed Certificate Fund:
• if any amount has been Transferred out of the Guaranteed Certificate Fund,
no Transfer into the Guaranteed Certificate Fund may be made for 90
continuous days from the date of the Transfer out.
• a Transfer from the Guaranteed Certificate Fund may be made only on the
Maturity Date of the Certificate under the Guaranteed Certificate Fund.
The mount that is then available for Transfer is the value of that
Certificate on its Maturity Date.
• the Group Policyholder's Written Request to Transfer from the Guaranteed
Certificate Fund must be received by the Company no later than 15 days
prior to the Maturity Date of the Certificate.
• the terms of the provisions on Transfers will apply to any Transfer to or
from the Guaranteed Certificate Fund.
Guaranteed Certificate Fund Rider
GJARANTEED CERTIFICATE FUND SUB - ACCOUNT RIDER (continued)
Application of Certificate On Death, Partial Surrender, Surrender, or
Retirement
If any amount Deposited into a Certificate of the Guaranteed Certificate Funa
is Applied - prior -to- the Maturity Date-- of- the-Cert_if_ic_ate under the provisions
concerning Amount Payable On Death of Participant, Partial Surrender,
Surrender, or Retirement the Amount Applied will receive the Credited Interest
Rate from the date of Deposit to the date the Amount is Applied.
Value of Guaranteed Certificate Fund
The value of the Guaranteed Certificate Fund in respect of the Participant
will be determined by adding his/her Guaranteed Sub - Account's Contributions,
interest-, and Transfers from other Guaranteed Sub - Accounts ant) from Variable
Sub - Accounts, and subtracting his /her Partial Surrenders, Surrenders, Amounts
Payable on Death, Amounts Applied under a Method of Payment Option,
Transfers
to other Guaranteed Sub- Accounts and to Variable Sub - Accounts, Transfer
Charges, Contract Maintenance Charge, Asset Management Fee, anc Premium Tax.
This Rider, unless and until Modified, forms part of the Group Annuity
Contract.
Guaranteed Certificate Fund Rider 3
Ame :Anent No. 1 -85C attached to and forming part of
Group Annuity Contract No.
issued by
The Great-West Life and Annuity Insurance C upany
WHEREAS, City of Vernon
(hereinafter referred to as Croup Policyholder) had previously - entered into 4
Croup Annuity Contract No. 98270GP with the rat -west Life and Annuity
Insurance Carpany (hereinafter referred to as the Insurance.Qaapany),
-AZE)14HEREAS, the Insurance Carpany wishes to waive the Contingent Deferred
Sales Charge on certain cronies within the Contract after. a Participant has
been covered under this Group Annuity Contract for 15 or more years,
APD1AiEREAS, the Insurance Carpany wishes. to improve the guaranteed annuity
purchase rates pertaining to fixed annuity payment options under this Group
Annuity Contract,
NOW T1- E, the parties hereto agree that as of Decinber 1, 1988 this
Group Annuity Contract is hereby amended by:
1) Adding to the "Provisions Relating to Amount Payable on Leath, Partial
Surrender and Surrender" section of the Contract, under the sub - section
titled "Contingent Deferred Sales Charge ", a new third paragraph with the
language included in the appropriate sub - section attached hereto and
marked as Amendment No. 1 -85C, and
2i Deleting Tables C, D, and E of the contract and replacing therefor the
Tables C, D, and E attached hereto and marked as Amendment 1 -85C.
Dated at Denver, Colorado on June 30, 1986, by The Great -West Life and Annuity
Insurance Carpany•
Vice-President and Secretary President
t.
PROJI SI O\S t€LATirG TO AMOUNT PAYAS_E ON DEATH, PAF71AL S'E'
AND SURRENDER (continued)
Contingent Deferred Sales Charoe
Notwitnstanoing the immediately preceding two paragraphs, a Contingent
Deferred Sales Charge will not be deducted for-any-Participant who-has
participated under this Group Annuity Contract 15 or more years from the
Participant Effective Date.
Amendment No. 1-850
TA8_C C - Income of Specified Ar,ojnt
Income of a Specifier Perloc
Monthly Payment for Each $1,000
of Participant Annuity Acdount Value
Years Pavment
3 28.61
4 21.82
5 17.75
6 15.04
7 13.10
8 11.66
9 10.54
10 9.63
11_ 8.90
12 8.30
13 7.7b
14 7.34-
15 6.96
16 6.63
17 6.34
18 6.08
19 5.85
20 5.64
To determine the payment for other freouencies of payment, multiply the above
monthly payment by the following factors:
Factor
Quarterly payment 2.99
Semi - annual payment 5.96
Annual payment 11.81
If payments are for an amount or duration different than that outlined above,
the Company will determine the proper amount or duration using the actuarial
basis used to determine the above Table.
Amendment No. 1-85C
TAELc D - Fixed Life Annuity
Monthly Payment for Each $1,000
of Participant Annuity Account Value
Age of Without With Guaranteed Period
Payee Guaranteea Perioa 5 Years 10 years 15 Years 20 Years
50 3.99 3.99 3.98. 3.96 3.94
55 4.31 4.30 4.27 4.24 4.19
60 4.71 4.70 4.67 4.60 4.49.
65 5.28 5.25 5.18 5.05 4.84
70 6.07 6.02 5.85 5.56 5.15
75 7.22 7.(15 6.68 6.07 5.41
If payments commence on any other date than the exact age of the Payee as
shown above, the amount of the montnly payment snail be deteralineo by the
Company on the actuarial basis used by it in determining the above amounts.
Amznent No. 1-1650
TALE E Joint anc One -Half Survivor Fixer Annuity
Monthly Payment for Each $1,000
of Participant Annuity Account Value
Age of If Desionated Payee is Ache
Annuitant 50 55 60 65 7) 75
50 3.88 3.91 3.94. 3.96 3.97 3.98
55 4.09 4.15 4.19 4.23 4.25 4.27
60 4.34 4.43 4.51 4.58 4.63 4.6E
65 4.64 4.77 4.90 5.01 5.10 5.16
70 4.99 5.17 5.36 5.55 5.70 5.83
75 5.40 5.65 5.91 6.19 6.4E 6.69
If payments commence on any other date than the exact aoe of the Annu ;tart or
designated Payee as snox :. above, tht amount of the montniy payrrent shall oe
determined by the Company on the actuarial basis used by it in determining the
axve amounts.
Amendment No. 1-850
FutureFuiith..
APPLICATION FOR GROUP DEFERRED COMPENSATION ANNUITY CONTRACT
Exact Name: �. ' t 04 vex vw n
(herein called the Group Policyholder) applies to Great -West Life & Annuity Insurance Company for a Group Deferred
Compensation Annuity Contract (herein called the Group Annuity Contract) in the form of the copy attached to this Application.
It is agreed that the Group Policyholder will accept the Group Annuity Contract when issued. d. `n
Specify the effective date of the Group Annuity Contract-
(which '",
(which is not earlier than the first day of the year in which this Application ha been made)
Specify the name of the Deferred Compensation Plan-
Cc Of- ��� na tn t f.SCx
Gorry Gns4Oh
This Group Annuity Contract is only available to policyholders whose Deferred Compensation Plan is an eligible State deferred
compensation plan described in Section 457(b) of the Internal Revenue Code of 1954, as amended.
The Insurance Company requires that a copy of the currently effective plan document accompany this application, for its
information.
PAYMENTS AND VALUES PROVIDED BY THE CONTRACT APPLIED FOR MAY BE VARIABLE AND NOT
GUARANTEED AS TO DOLLAR AMOUNT. Q
Group Policyholder's address 0 S 1� a �� r v e. SL
\lextnon , ooSB
Dated at \Ie"Y mo h this day of 1)e X o
' , 19 g
totAll of \J no n
Agent/Broker Name of ,up Policy Ider
BY7, Signature
Application
Group Deferred Compensation Annuity
G520 (7 -86)
G w'
Great -West
L*E a..4r4rrr n SUR4NCE COUP..Nr
P.O. Box 1400
Denver. Colorado 80201
WI-Li mcni. h&st r
Title
.. f`� ,x! .51®
1
2
3
4
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CONTRACT
THIS AGREEMENT is made and entered into and executed in
duplicate originals, either copy of which may be considered and
used as the original hereof for all purposes, and to be
performed in Vernon, California as of the_ __' day of
BY AND BETWEEN
AND
, 1989,
GREAT -WEST LIFE AND
ANNUITY INSURANCE COMPANY
(hereinafter "Great -West Life ")
8505 East Orchard Road
Englewood, CO 80111
CITY OF VERNON
A Municipal Corporation
(hereinafter "City")
4305 Santa Fe Avenue
Vernon, CA 90058
RECITALS
WHEREAS, Great -West life has issued to the City Group
Deferred Compensation Annuity Contract No. 98270 GP dated
December 1, 1988; and
WHEREAS, the City has established a deferred
compensation plan administered by the ICMA Retirement
Corporation, which was approved by Resolution No. 5042 on
September 20, 1983; and
WHEREAS, Great -West Life agrees that their alternative
investment program for employees of the City represented by
Group Deferred Compensation Annuity Contract No. 98270 GP
conforms to the terms and conditions of the City's deferred
compensation plan and that Great -West Life has agreed to
administer their Group Deferred Compensation Annuity Contract
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No. 98270 GP consistent with instructions received from the
City.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL
COVENANTS, PROMISES AND CONDITIONS HEREINAFTER SET FORTH, THE
PARTIES HERETO AGREE AS FOLLOWS:
1. The Great -West Life agrees that Great -West Life's
Group Deferred Compensation Annuity Contract No. 98270 GP dated
December 1, 1988, will be administered pursuant with
instructions received by the City pursuant to the City's
deferred compensation plan adopted by the City pursuant to
Resolution No. 5042 on September 20, 1983.
IN WITNESS WHEREOF, the parties hereto have caused
this Contract to be subscribed to on the day, month, and year
first above written.
ATTEST:
GREAT -WEST LIFE AND ANNUITY
ANNUITY INSURANCE COMPANY
Byor?hn )J . Ai/foie/nib
B
BRUCE V. MALKENHORST
City Clerk
APPROVED AS TO FORM:
A.12
DAVID B. BREAI EY
City Attorney
Resolution No. 5671
Exhibit B
Adopted September 5, 1989
-2-
CITY OF VERNON
A MUNICIPAL CORPORATION
01-Tz
G reat -West°
LIFE & ANNUITY INSURANCE COMPANY
HOME OFFICE - WICHITA, KANSAS
ADMINISTRATIVE OFFICES
DENVER, COLORADO
GROUP POLICYHOLDER City of Vernon
GROUP POLICY NLMBER 98270GP
GROUP ANN ITY CONTRACT DATE December 1, 1988
Group Deferred Compensation Annuity, NO-Participating
.The provisions on the following pages, together with the Application for this
Group Annuity Contract, are part of this Group annuity Contract.
For the purposes of this Group Annuity Contract, "Pdesi means
eans the plan and
adoption agreement that the Group Policyholder g^
City of Vernon Deferred Compensation Plan
Signeo for the Great -West Life & Annuity Insurance Company on the issuance of
the Group Annuity Contract on the Annuity Contract Late.
Secretary
---5 f
For the Actuary
President
This Group Annuity Contract is a legal contract between the Group Policyholder
and the Great -West Life & Annuity Insurance Company. PLEASE READ THIS ANNUITY
CONTRACT CAREFULLY. IT IS A CONTRACT WhICH MAY PROVIDE FOR PAYMENTS OR VAS
WHICH ME NOT GUARANTEED AS TO FIXED- DOLLAR AMOUNT BUT MAY VARY ACCCRDING TO
THE INVESTMENT EXPERIENCE OF A VARIABLE ANNJITY ACCOUNT.
Group Deferred Compensation Annuity
GDD4rr184
TABLE OF CONTENT
Page 4
DEF IN IT IONS
OWNERSHIP PROVISIONS 7
Ownership of Series Account 7
Ownership of Group Annuity Contract
Transfer and Assignment
GENERAL PROVISIONS 8
The Group Annuity Contract 8
Entire Contract... 8
The Plan. 8
Non - Participating 8
Currency and Payment of Contributions. 8
Age 8
Voting Rights and Reports. g
Notice and Proof
PURCHASE PROVISIONS 10
Commencement and Termination of Coverage 10
Contributions 10
Allocation of Contributions
CONTRACT VALUE PROVISIONS 11
Variable Contract Value 11
Accumulation Unit 11
Accumulation Unit Value
Annuity Unit Value 11
11
Net Investment Factor. 13
Risk Charge 13
Guaranteed Contract Value 13
Guaranteed Sub - Account Riders 13
Asset Management Fee 13
Variable and Guaranteed Contract Value Provisions
Contract Maintenance Charge 13
13
Transfer Charge
TRANSF ERS 15
Transfer Terms 15
No Receipt of Transferred Amounts
RETIREMENT PROVISIONS 16
Adequate Proof. 16
Payment On Retirement
TABLE OF CONTENTS (Continued)
PROVISIONS RELATING TO AMOUNT PAYABLE 014 DEATH, PARTIAL SURRENDER, AND
SURRENDER 17
Amount Payable On Death of Participant 17
Partial Surrender. 1 7s
Amount Payable on Partial Surrender 18
Surrender 18
Amount Payable on Surrender 18
Contingent Deferred Sales Charge 19
Contingent Deferred Sales Charge Free Amount 19
Adequate Proof 19
Payment On Death, Partial Surrender, and Surrender
METHODS OF PAYMENT PROVISIONS 20
Amount To Be Appl ied 20
Variable Dollar Method of Payment 20
Amount of First Monthly Payment 20
Annuity Units 21
Amount of Monthly Payments After the First 21
Variable Dollar Method of Payment Uptions 22
Fixed Dollar Method of Payment 22
Amount of Payment 22
Fi xed Dollar Method of Payment Options 22
How to Elect Method of Payment Option 23
Availability of Options 23
Settlement
CONTRACT MODIFICATION 24
Modification of Tables. 24
Modification of Guaranteed Sub - Account Riders, If Pny 24
Modification of Offering of Guaranteed Sub- Accounts. 24
Modification of Interest Guarantee Period
CESSATION OF DEPOSITS 25
Options On Date of Cessation of Deposits
26
TABLE A
TABLE B 2 27 7
TABLE C 2 9
TABLED 30
TABLE E
GUARANTEED SUB- ACCOUNT RIDERS, IF ANY
DEFINITIONS
Accumulation Period
Accumulation Unit
Annuitant
Annuity Commencement Date
Annuity Payment Period
Annuity Unit
Company
Deposit
Eligible Fund
Group Annuity Contract Date
Group Policyholder
tne period during which the Participant
is Covered under tnis Group Annuity
Contract prior to the Participant's
Annuity Commencement Date.
an accounting unit used to determine the
Variable Contract Value before the
Annuity Commencement Date.
the person upon whose life the payment
of an annuity is based.
the date on which annuity payments
commence under a Method of- Payment
Option, which for any Participant is not
later than the first of the month after
the month he /she must retire under the
terms of the Plan, unless earlier
permitted by the Group Policyholder.
- the period during which the Participant
is Covered under this Group Annuity
Contract after the Participant's Annuity
Commencement Date.
an accounting unit used to determine the
dollar value of any Variable Dollar
Annuity Payment after tne First Payment.
the Great - West Life & Annuity Insurance
Company.
includes Contributions, Transfers and
other amounts Deposited into Guaranteed
or Variable Sub- Accounts.
- a registered management investment
company in which the assets of the
Series Account may be invested.
the effective date indicated by the
Group Policyholder on the Application
for this Group Annuity Contract, or such
other date which is acceptable to the
Company,
- the employer of a Participant and the
Applicant for this Group Annuity
Contract.
DEFINITIONS (continued)
Guaranteed Account
Guaranteed Contract Value
Guaranteed Interest Rate
the portion of this Group Annuity
Contract providing Guaranteed
Sub - Accounts, each having a Guaranteed
Interest Rate and containing fixed
dollar amounts.
- the sum of the values of the Guarantee_ d
Sub- Accounts crediteu to the Group
Policyholder in respect of a Participant
under a Participant Annuity Account.
▪ the minimum interest rate applicable to
Guaranteed Sub- Accounts which on an
annual effective basis is 4 %.
Guaranteed Sub- Account a subdivision of the Guaranteed Account
having a Guaranteed Interest Rate and
containing fixed dollar amounts. Tnis
subdivision is described in greater
detail in the attached Guarantee°
Sub- Account Riders, if any.
Investment Division a division of the Series Account
containing the shares of "a specific
portfolio of the Eligible Fund. There
is an Investment Division for each
portfolio of the Eligible Fund.
Participant - a person in the employ of the Group
Policyholder on the day the Group
Policyholder has made Application for
Coverage for him/her and who is reported
by the Group Policyholder as having
complied with the terms of the Plan as
to eligibility.
Participant Annuity Account - a separate record established in the
name of each Participant which reflects
the total of the Guaranteed and Variable
Contract Values.
Participant Annuity Account Value the sum of the Variable and Guaranteed
Contract Values credited to the Group
Policyholder in respect of a Participant
under a Participant Annuity Account.
Participant Effective Date
- the date on which the first Deposit is
credited to a Participant Annuity
Account.
5
DEFINITIONS (continued)
Payee
Premium Tax
Series Account
Transfer
the Group Policyholder or the person, including
the Participant, designated by it to receive the
value of the Participant Annuity Account.
- the amount of premium tax, if any, charged by a
state or other government authority.
- the segregated investment account called
"FUTUREFUNDS Series Account" established by
Great -West Life & Annuity Insurance Company under
Kansas law and registered as a unit investment
under the Investment Company of
as amended.
amounts moved from any Sub - Account to another
Sub - Account on one day upon each Written Request
of the Group Policyholder in respect of the
Participant.
Valuation Date - the date on which the net asset value of each
Eligi5le Funo is determines.
Valuation Period - the period between the ending of two successive
Valuation Dates.
Variable Contract Value - the sum of the values of the Variable
Sub - Accounts creoiteo to the Group Policyholder
in respect of a Participant under a Participant
Annuity Account.
• a sub - division of an Investment Division which
separates Contributions received under tax
qualified arrangements from those received under
non -tax qualified arrangements. Each Variable
Sub- Account has its own Accumulation Unit and
Annuity Unit Value.
the Request required in the Allocation of
Contributions, Transfers, Surrender, Partial
Surrender, How to Elect Method of Payment Option,
and Cessation of Ueposits provisions, the
Contract Value and Retirement Provisions, the
Guaranteed Sub - Account Kiders, if any, and at
other times as required by the Company. It must
be in writing from the Group Policyholder or its
designee and in a form satisfactory to the
Company, and to be effective must be received by
the Company at its Administrative Offices. A
form or direction in lieu of the Written Request
may be accepted by the Company.
Variable Sub- Account
Written Request
OWNERSHIP PROVISIONS
Ownership of Series Account
The Company has absolute ownership of the assets of the Series Account.
Ownership of Group Annuity Contract
Upon the Group Policyholder's Apwneraof for
Group Policyholder becomes the owner
all rights, remedies and recourses given in the Group Annuity at
onract,are
and, while the Group Annuity Contract and the Participant Annuity
held in respect of Participants, there is no contractual relationship between
the Company and the Participants. While the dGroapsPol transactions affecting request
the opinion of the Participant on matter�lic holder may act according to the
Participant Annuity Account, the Group y
dictates of its own judgment and discretion.
Subject to the Plan Participation provisions, each employee for whom
Contributions have been made is a Participant for whom a Participant Annuity
Account is established.
Transfer and Assignment
The.interest of the,,Group Policyholder in this Group Annuity Contract may not
be transferred, sold, assigned, pledged, charged, encumbered, or in any way
alienated without the prior written consent of the Company.
GENSIAL PROVISIONS
The Group Annuity Contract
The_Group Annuity Contract is issued by the Company to the Group Policyholder.
Entire Contract
This Group Annuity_ Contract, its Application, Tables, and.Guaranteed
Sub- Account Riders, if any, form the entire contract between the Group
Policyholder and the Company. A copy of the Application is attached to the
Group Annuity Contract when issued to the Group Policyholder.
After issue, Modifications to the Group Annuity Contract under the Contract
Modification provisions become part of the Group Annuity Contract.
All statements in the Application, in the absence of fraud, have been accepted
as representations and not as warranties.
Only the President, a Vice-President, Secretary of Company can
Modify or waive any provis ons
The Plan
The terms and provisions of the Plan oo not for any purpose form any part of
this Group Annuity Contract and are not binding on the Company.
Notwithstanding the fact that it may have knowledge of the terms of the Plan,
the obligations of the Company are measured and determined solely by the
and provisions of this Group Annuity Contract.
-Non- Participating
This Group Annuity Contract is non - participating. It is not eligible to share
in the Company's divisible surplus.
Currency and Payment of Contributions
All amounts to be paid to or by the Company must be in the currency of the
United States of America. All Contributions to this Group Annuity Contract
must be made payable to the Company or -its designated agent.
If the age of the Participant or Payee has been misstated, the payments
established for him /her under the Participant Annuity Account will be made on
the basis of his /her correct age.
If payments were too large because moanmif�omtthennext the
paymentrorcpayments. If
interest may be deducted by the Company
payments were too small, the difference with interest may be aaaed by the -
Company to the next payment. This interest will be not less than 4% per y ear.
8
GENERAL PROVISIONS. (continued)
Voting Rights and Reports
The Company will vote the shares of an Eligible Fun held Tariablextent
Sub - Account of the Investment Division of the Series
required by law, .the Cwill
tovote
itsainterest in the Variable instructions
Sub Account.
Group Poli cyholder in proportion
In such event, the Company will proxy materials
and Company willevoteup
Policyholder for its reply.
shares of the appropriate Eligible Fund in the same proportion as shares of
the Eligible Fund for which replies have been received.
During the Annuity Payment Period under 1pfund annuity payments
number of votes will decrease as the
the Payee will be entitled to receive eotproxd and andvisions
form(s) otherwise provided to the Group Y her
concerning Voting Rights will apply to the Payee of a Variable Dollar Method
of Payment Option.
The Company will furnish the Group Policyholder horethe Payee epofta of
Dollar Method of Payment Option copies of any
Eligible Funds and of any other notices, reports or documents required by law
to be furnished to either of them.
Semi- annual reports of the Eligible Funds will be furnishedtaserequiretiby,�aat
to the Group Policyholder, who shall promptly
or Payee of a Variable Donotolde�s frequently than annuallypan
furnish the Group Policyholder statement
of each Participant's Participant Annuity Account Value, which tne
will promptly deliver to the Participant. The Group
may direct the Company to deliver these reports and statements to the
Participants.
Notice and Proof
any
Any notice or demand by the Company to or uponnthelGroupnPolicydoloeraorsanyed
Payee may be given by mailing it to that p
in the Company's file.
An application, report, request, election,
direction, notice or demand by the
Group Policyholder or Payee will be made in a form satisfactory to the
Company. When the Company requires it, the Group Policyholder will obtain the
signature of the Participant's or Payee's spouse on forms provided by the
Company
may require adequate 'proof of the age and death of any Payee
The Company aY a
before it admits a claim for or pays any payment.
Written materials developed by the Group Policyholder to describe this Group
Annuity Contract must first be approved by the Company.
9
PURCHASE PROVISIONS
Commencement and Termination of Coverage
The Group Policyholder may make Application for Coverage of any employee if
the Company is then accepting Applications for Coverage under this Group
Annuity Contract, unless a Date of Cessation of Deposits has been declared.
An employee for whom an adequate Application has been made becomes Covered as
`a Participant as of the Participant Effective -Date. Coverage of a Participant
terminates upon the Group APolicyholder's SSurrender
gor Partial Surrender which
results in a Participan Y
Contributions
Unless a Date of Cessation of Deposits has been aeclared, the Group
Policyholder may from time to time pay Contributions in cash in respect of a
Participant until the earlier of his /her Deatn, Annuity Commencement Date, or
the Surrender of the Participant Annuity Account.
The amount of Contributions to be paid by the Group Policyholder in respect of
any Participant will be determined by the Group Policyholder.
The Group Policyholder will report the amount paid as Contributions on forms
acceptable to the Company. The Group Policyholder's report is conclusive and
binding on it and any person or entity claiming an interest under the Group
Annuity Contract or any Participant Annuity Account. When the Group
Policyholder's report does not coincide with the Contributions received, the
Company may return them.
Allocation of Contributions
After an adequate application in respect of a Participant has been made,
Contributions, less Premium Tax, if any, will be Allocated in the Participant
Annuity Account when received by the Company at its Administrative Offices.
Contributions in respect of the Participant will be Allocated among any number
of currently offered VariablauofatheeGroup accordance
Request latest recorded Written
the Participant.
The Allocation of Contributions may be Changed at any time upon the Company's
receipt at its Administrative offices of the Written Request of the Group
Policyholder in respect of the Participant. A Change of Allocation will be
effective for Contributions which are received after the Company's receipt ano
recording of the Change.
CONiRACT VALUE PROVISIONS
Variable Contract Value
The Variable Contract Value in respect of the Participant on any date during
the Accumulation Period will be the sum of the values of the Variable
Sub- Accounts of the Series Account held in respect of the Participant.
The value of a Group Policyholder's interest in a Variable Sub- Account in
respect of a Participant will be determined by multiplying the number of
Accumulation Units held in respect of the Participant for that Variable
Sub - Account by the Accumulation Unit Value for that Variable.Sub- Account.
Accumulation Unit
Contributions and Transfers received at the Administrative Offices of the
Company before the close of a Valuation Date will be allocated as requested
and applied as of that date, otherwise as of the next Valuation Date, to
provide Accumulation Units of the selected Variable Sub - Accounts of the Series
Account.
The number of Accumulation Units credited in respect of each Participant to a
Variable Sub - Account will be determined by dividing the amount of the
Contributions and Transfers then applied to such Variable Sub- Account by the
Accumulation Unit Value for that Variable Sub - Account on the Valuation Date on
which the Contributions were allocated and Transfers were made.
The number of Accumulation Units will not change because of a later change in
the Accumulation Unit Value, but the Accumulation Unit Value will vary to
reflect the investment experience of the Variable Sub - Account.
Accumulation Unit Value
The initial Accumulation Unit Value of each Variable - Sub - Account was
established at $10 on the date a Deposit was first made to the Variable
Sub - Account..
The Accumulation Unit Value of a Variable Sub - Account on any subsequent
Valuation Date is equal to the Accumulation Unit Value of that Variable
Sub- Account as of the immediately preceding Valuation Date multiplied by the
Net Investment Factor for the Valuation Period ending on the Valuation Date on
which the Accumulation Unit Value is being determined.
The Accumulation Unit Value may increase, decrease, or remain unchanged as a
result of the value of the Net Investment Factor.
Annuity Unit Value
The initial Annuity Unit Value of each Variable Sub - Account was established at
$1 on the date a Deposit was first made under a Variable Annuity Method of
Payment to the Variable Sub- Account(s).
CONTRACT VALUE PROVISIONS (continued)
Variable Contract Value (continued)
Annuity Unit Value (continued)
The Annuity Unit Value of any Variable Sub- Account on any subsequent Valuation.
Date is equal to the Annuity Unit Value for the immediately preceding
Valuation Date multiplied by the Net Investment Factor for that Variable
Sub - Account for the Valuation Period ending on the Valuation Date on which.the
Annuity Unit Value is being determined, and multiplying the result by a factor
of .999905 to neutralize the assumed investment rate of 3.5% per year used in
the applicable Table for Variable Dollar Method of Payment Options 1, 2, 3,
and 4.
Net Investment Factor
The Net Investment Factor for any Variable Sub - Account for any Valuation
Period is determined by dividing (a) by (b), and subtracting (c) from the
result where:
(a) is the net result of:
(i) the Variable arabetSub lAccountsdeterminedeaslofi the enddofhthes in
current
the
Valuation Period, plus
(ii) the per share amount of any dividend (or, if applicable, capital
gain distributions) made by the Eligible Fund on shares held in
the Variable Sub - Account if the "e x- divioend" date occurs during
the current Valuation Period, minus or plus
(iii) a per unit charge or credit for any taxes incurred by or reserved
for in the Variable Sub - Account, which is determined by the
Company to have resulted from the investment operations of the
Variable Sub- Account.
(b) is the net result of:
(i) the net asset value per share of the Eligible Fund shares held in
the Variable Sub - Account determined as of the end of the
immediately preceding Valuation Period, minus or plus,
the per unit charge or credit for any taxes incurred by or
reserved for in the Variable Sub- Account for the immediately
preceding Valuation Period.
(c) is a factor representing the Risk Charge deducted from each Variable
Sub- Account on a daily basis. Such factor is equal to of 1.25% on an
annual basis of the daily net asset value'of each Variable pub- Account.
The Net Investment Factor may be greater than, less than, or equal to one
Therefore, the Accumulation Unit Value may increase, decrease or remain
unchanged.
CONTRACT VALUE PROVISIONS (continued)
Variable Contract Value (continued)
Net Investment Factor (continued)
The per share amount of any dividend referred to in paragraph (a)lii) includes
a deduction for an investment advisory fee. This fee compensates the
investment adviser for services provided to the Eligible Fund. The fee may
differ between Eligible Funds and may be renegotiated each year, but will
never exceed an annual rate of 1.00% of the aggregate average daily net assets
of the Eligible Fund.
Risk Charge
The Company will deduct the Risk Charge for expense and mortality guarantees
in the calculation of the Net Investment Factor. This Charge is equal to
1.25% on an annual basis of the daily net asset value of each Variable
Sub - Account. This deduction is made daily.
Guaranteed Contract Value
The Guaranteed Contract Value of a Participant Annuity Account on any date
during the Accumulation Period will be the sum of the values of the Guaranteed
Sub - Accounts credited to such Participant Annuity Account.
The Company may offer one or more Guaranteed Sub- Accounts into which
Contributions will be Deposited at the Written Request of the Group
Policyholder in respect of the Participant in accordance witn the Allocation
of Contributions provisions.
Guaranteed Sub- Account Riders
The computation of the value of a Guaranteed Sub- Account is described in
greater detail in the attached Guaranteed Sub - Account Riders, if any.
Asset Management Fee
On the first day of each Calendar Year an Asset Management Fee to be assessed
against Guaranteed Contract Values will be declared by the Company. The
amount to be deducted from the Guaranteed Contract Values will be determined,
and applied by the Company on the first day of each calendar quarter.
Variable and Guaranteed Contract Value Provisions
The following Charges are applicable to the Variable and Guaranteed Contract
Values.
Contract Maintenance Charge
On the first day of each calendar year, a Contract Maintenance Charge of not
more than $60 annually will be deducted from the Participant Annuity Account.
If a Participant Annuity Account is established in respect of a Participant
after that date, a Contract Maintenance Charge will be deducted on the first
day of the next quarter and will be pro -rated for the year remaining. No
refund of this Charge will be made.
- 13 -
CONTRACT VALUE PROVISIONS (continued)
Variable and Guaranteed Contract Value Provisions (continued)
Contract Maintenance Charge (continued)
The deduction will be pro -rated among the Variable and Guaranteed Sub- Accounts
based upon their Variable and Guaranteed Sub - Account values on the date of
deduction. Whenever a .deduction for a Contract Maintenance Charge is to be
made from a Variable Sub - Account, the Company will cancel Accumulation Units
having a total value equal to the amount of the deduction.
Transfer Charge
With the exception of the first two Transfers in a calendar year, a Transfer
Charge of $10 per Transfer will be deducted from the Participant Annuity
Account after the Transfer.
1RANSF ERS
The Group Policyholder in respect of the Participant may by Written Request
Transfer amounts within and between the currently offered Variable and
Guaranteed Sub - Accounts.
Transfer Terms
The following provisions will apply to any Transfer:
a Transfer will take effect on the later of the date Elected or the date
the Written Request is received at the Administrative Uffices of the
Company.
if a Transfer is made within 30 days of the Annuity Commencement uate, the
• Company may delay the Annuity Commencement Date-by 30 days.
• if a Participant dies prior to the Annuity it ant encthent one
may be made after the Death of the P by
in respect of the Payee to effect the Election of a Method of Payment
Option.
• with the exception of the first two Transfers in a calendar year, a
Transfer Charge of $10 will be deducted.
• when the Company requires it, the Group Policyholder in respect of the
Participant or the Payee will execute forms provided by the Company as
necessary to the requested Transfer.
no Transfers are permitted after the Annuity Commencement Date.
a Transfer will be subject to terms described in greater detail in the
attached Guaranteed Sub - Account Riders, if any.
No Receipt of Transferred Amounts
No Transfer made within these Transfer Provisions will result in the
Participant's receipt of the Transferred amounts, which shall continue to be
held under the. Participant Annuity Account.
RETIREMENT PROVISIOiS
On the Company's receipt of the Written Request at least 30 days before the
Annuity Commencement Date, the Group Policyholder in respect.of the
Participant may in the Written Request:
• Elect or Change a Method of Payment Option.
make a Partial Surrender or Surrender.
• Elect or Change the Participant's Annuity Commencement Date to any future
date which is not later than the first of the month after the month the
Participant must retire under the terms of the Plan. If any Annuity
Commencement Date would be less than 30 days from the date that the
Written Request is received, the Company may delay the Annuity
Commencement Date Elected by 30 days.
• if the Group Policyholder in respect of the Participant has failed to
Elect a Method of Payment Option within 30 days of his/her Annuity
Commencement Date, the Company will pay the Group Policyholder in respect
of the Participant a Variable Life Annuity with 10 Year Guaranteed Period
from the Variable Contract Value and a Fixed Life Annuity with 10 Year
Guaranteed Period from the Guaranteed Contract Value.
Adequate Proof
The Company is entitled to require the receipt of adequate proof of age,
death, or any other event or contingency, or to establish the fact that a
benefit has become payable under the provisions of the Plan, prior to making
any payment under this Group Annuity Contract.
Payment On Retirement
Payment under the Retirement Provisions will only be made if then available to
the Participant under the terms and provisions of the Plan as determined by
the Group Policyholder, and will only be made to the Group Policyholder or to
the order of the person designated in the Written Request by the Group
Policyholder to receive payment.
PROVISIONS RELATING TO AMOUNT PAYABLE ON DEATH, PARTIAL SURRENDER, AND
SURRENDER
Amount Payable On Death of Participant
If the Participant dies before the Annuity Commencement Date, the Amount
Payable on Death will be:
(a) where Death occurs before the Participant's 70th birthday, the greater of:
(i)
the Participant Annuity Account Value, less Premium Tax, if any,
and
(ii) the sum of Contributions paid to, less any Partial Surrenders made
from, the Participant Annuity Account, less Premium Tax, if any.
(b) where Death occurs on or after the Participant's 70th birthday, the
Participant Annuity Account Value, less Premium Tax, if any.
The Payee of an Amount Payable on Death may Elect that payment be made under
the Methods of Payment Provisions, a combination of the Partial Surrender and
Methods of Payment Provisions, or under the Surrender Provisions. If the
Payee Elects either a Partial Surrender or the Surrender of the Participant
Annuity Account, the Contingent Deferred Sales Charge of the Partial Surrender
or Surrender provisions will not apply. The Election of the Payee must be
made not later than 60 days after the date the Company receives Adequate Proof
of the Participant's Death. If no Election is made, a single payment will be
made under the Surrender provisions to the Payee. The Contingent Deferred
Sales Charge will not apply to this single payment.
Partial Surrender
By Written Request the Group Policyholder in respect of the Payee may make a
Partial Surrender of the Participant Annuity Account. The Partial Surrender
will take effect on the later of the date Elected and the date the Written
Request is received at the Administrative Offices of the Company. Subject to
the Amount Payable On Death of Participant provision, a Written Request for
Partial Surrender must be received by the Company at least 30 days before the
Annuity Commencement Date.
The Group Policyholder in respect of the Participant must in the Written
Request Elect the Variable or Guaranteed Sub- Account(s), or a combination of
them, from which the Partial Surrender is made. If an adequate Election is
not made, the Written Request will be returned to the (croup Policyholder, and
the Partial Surrender in respect of the Payee will not be made.
PROVISIONS RELATING TO AMOUNT PAYABLE ON DEATH, PARTIAL SURRENDER, AND
SURRENDER (continued)
Amount Payable On Partial Surrender
The amount payable on Partial Surrender will be paid in one sum under the
Partial Surrender provisions equal to:
(a) the amount requested as the Partial Surrender as of the effective date of
the Partial Surrender, less
(b) the Contingent Deferred Sales Charge, if any, less
(c) Premium Tax, if any.
Surrender
By Written Request the Group Policyholder in respect of the Payee may
Surrender the Participant Annuity Account. The Surrender will take effect on
the later of the date Elected and the date the Written Request is received at
the Administrative Offices of the Company. If an adequate Written Request is
not made, the Written Request will be returned to the Group Policyholder and
the Surrender will not be made. Subject to the Amount Payable On Death of
Participant provision, a Written Request for Surrender must be received by the
Company at least 30 days before the Annuity Commencement Date.
Amount Payable on Surrender
The Amount Payable on Surrender may eunder Applied
theseunder
Surren�fe Methods
ovisions equal
Provisions or will be paid in one sum
to:
(a) the Participant Annuity Account Value as of the effective date of
Surrender, less
(b) the Contingent Deferred Sales Charge, if any, less
(c) Premium Tax , if any.
Contingent Deferred Sales Charge
Subject to the Amount Payable On Death of Participant provision, on any
Partial Surrender or the Surrender of the Participant Annuity Account a
Contingent. Deferred Sales Charge will be deducted from the Amount Surrendered.
The Contingent Deferred Sales Charge applicable to any Partial Surrender or
the Surrender will be equal to 6% of the Amount Surrendered in excess of the
Contingent Deferred Sales Charge Free Amount, if any, and is limited so that
the amount then charged will not cause the cumulative total of all Contingent
Deferred Sales Charges charged in respect of the Participant under his /her
Participant Annuity Account to exceed 6% of the Contributions made to his /her
Participant Annuity Account within 72 months prior to the effective date of
the Partial Surrender or the Surrender.
the
PROVISIOPS RELATING TO AMOUNT PAYABLE ON DEAT PARTIAL SURRENDER AND
SURR..ND R continued
Contingent Deferred Sales Charge Free Amount
The Amount of the Contingent Deferred Sales at December 31 Amount is equal to
calendar year
of the Participant Annuity Account Value
to the year in which the Amount is Surrendered.
Only one Contingent Deferred Sales Charge Free Amount histaia available
lenin respect
of a Participant in each calendar year beginning in year
after he /she is Covered undPmo ntswill obe Applied ContthetSurrende�nornthet
Deferred Sales Charge Free
first Partial Surrender made under the
resul tParticipant
f inanci alyhardshnp in
astdef fined
year for the payment of benefits as a
in the Plan and approved by the Group Policyholder.
Adequate Proof
The Company is entitled to require the of
death, or any other event or contingency, or to
benefit has become payable under the provisions of the Plan, prior to making
any payment under this Group Annuity Contract.
Pa ent On Death Partial Surrender and Surrender
Payment under any of the Provisions Relating oufttPePayable On DDeath,the
Partial Surrender, and Surrender will only b e made
Payee under the terms and lPrbelmadestof the the Group Poldicyholderdoryta the
theGroup
order
Policyholder, and will only y
Polic holder to
of the person designated in the Written Request by the Group
receive payment.
METHODS OF PAYMENT PROVISIONS
One of the Variable or Fixed Dollar Methods of Payment Options or a
combination of them may be Elected under the Methods of Payment Provisions.
Amount To Be Appl ied
The Amount to be Applied under the Methods of Payment Provisions is the
Participant Annuity Account Value less Premium Tax, if any.
If a Variable Dollar Method ofaValue astofnthe date Elected,
the Amount oftthe First
Applied is the Variable Contract
Monthly Payment is determined.
If a Fixed Dollar Method doContracttVa�lue as1ofElected, the Annuity Commencement Applied is the Guaranteed t Date.
If the Group Policyholder in respect of the Payee Elects to Apply any or all
of the Guaranteed Contract Value to a Variable Dollar Method of Payment
Option, or any or all of the Variable Contract Value to a Fixed Dollar Method
of Payment Option, a Transfer(s) must be made prior to the Annuity
Commencement Date. The Transfer(s) must comply with the provisions on
Transfers.
Variable Dollar Method of Payment
The following Variable Dollar Method of Payment Options are available. They
are subject to the following provisions
Amount of First Monthly Payment
The First Monthly Payment under a Variable Dollar Method of Payment Option
will be based on the Variable Contract Value credited in respect of the
Participant Annuity Account on the 5th Valuation Date preceding the Annuity
Commencement Date. It will be determined by applying the appropriate rate
from the applicable Table to the Amount Applied under the Option. The First
Monthly Payment will be the sum of the variable dollar annuity payments for
each Variable Sub- Account.
Annuity Units
The number of Annuity Units for each Variable Sub - Account to be credited in
respect of the Participant Annuity Account will be determined by dividing the
portion of the First Monthly Payment to be taken from such Sub - Account by the
Sub - Account's Annuity Unit Value on the 5th Valuation Date preceding the date
the First Payment is due for which the number of Annuity Units is being
computed. The number of Annuity Units for a Variable Sub - Account remains
fixed during the Annuity Payment Period.
METHODS OF PAYMENT PROVISIOI (continued)
Amount of Monthly Payments After the First
Monthly Payments After the First under a Variable Dollar Method of Payment
Option will vary in_amount from time to time depending upon the investment
experience of the Variable Sub Accounts of the Series Account.
The dollar amount, of each variable dollar annuity payment to the Participant
or Payee after the first for each Variable Sub- Account is determined by
multiplying (a) the number of Sub - Account Annuity Units credited to the
Participant Annuity Account by (b) the Sub - Account Annuity Unit Value on the
5th Valuation Date preceding the date the annuity payment is due. The total
dollar amount of each variable dollar annuity payment will be the sum of the
variable dollar annuity payments for each Variable Sub-Account.
The Company guarantees that the dollar amount of each Payment After the First
will not be affected by variations in expenses or mortality experience.
Variable Dollar Method of Payment Options
Option 1: Variable Life Annuity with - Guaranteed Period
The Company will pay a monthly payment for the guaranteed Annuity Payment
Period Elected. Payments will continue for the lifetime of the Payee. The
guaranteed Annuity Payment Period elected may be 5, 10, 15 or 20 years. The
provision on Settlement applies to amounts payable after the death of the
Payee. Table A is applicable to this Option.
Option 2: Variable Life Annuity
The Company will pay a monthly payment during the Payee's lifetime. Table A
is applicable to this Option.
Option 3: Joint and One -Half Survivor Variable Annuity
A joint and one -half survivor variable annuity provides a variable monthly
payment to an Annuitant for his /her lifetime; thereafter, and upon receipt by
the Company of.adequate proof of the Annuitant's death, one -half of the
variable payment amount continues to a designated Payee, if living, and
terminates upon his /her death. Table B is applicable to this Option.
Option 4: Any Other Form
The Company will pay any other form of Variable Annuity which is acceptable to
it.
METHDDS OF PAYMENT PROVISIONS (continued)
Fixed Dollar Method of Payment
The following Fixed Dollar Method of Payment Options are available. They are
subject to the following provisions.
Amount of Payment
Payments under a Fixed Dollar Method of Payment Option are guaranteed by the
Company as to dollar amount throughout the Annuity Payment Period.
The - Amount of the Payment under any Fixed Dollar Method of Payment Option will
be determined by applying the Company's then current non - participating group
single _premium rates for this class of group annuity contracts to the Amount
Applied under the Option. Those current rates will not be less than the rate
obtained from the Table which is Applicable to the Elected Option.
Fixed Dollar Method of Payment Options:
Option 1: Income of Specified Amount
The Company will pay an income, at 12 -, 6 -, 3 -, or 1 -month intervals, of an
amount Elected by the Payee for an Annuity Payment Period of not less than 36
months nor more than 240 months. The provision on Settlement applies to
amounts payable after the death of the Payee. Table C is applicable to this
Option.
Option 2: Income for a Specified Period
The Company will pay an income, at 12 -, 6 3 -, or 1 -month intervals, for the
number of years Elected by the Payee for an Annuity Payment Period of not less
than 36 months nor more than 240 months. The provision on Settlement applies
to amounts payable after the death of the Payee. Table C is applicable to
this Option.
Option 3: Fixed Life Annuity with Guaranteed Period
The Company will pay a monthly payment for the guaranteed Annuity Payment
Period Elected. Payments will continue for the lifetime of the Payee. The
provision on Settlement applies to amounts payable after the death of the
Payee. Table D is applicable to this Option.
The guaranteed Annuity Payment Period elected may be 5, 10, 15 or 20 years, or
may be a period referred to as "Installment Refund ". Unaer the Installment
Refund period, payments will be made until the total of the Payments made
equals the Amount Applied.
Option 4: Fixed Life Annuity
The Company will pay a monthly payment during the Payee's lifetime. Table D
is applicable to this Option.
METHDDS OF PAYMENT PROVISIONS (continued)
Fixed Dollar Method of Payment Options: (continued)
Option 5: Joint and One -Half Survivor Fixed Annuity
A joint and one -half survivor fixed annuity provides
and rvidauf ixedecoithlyypahment
to an Annuitant for his /her lifetime; thereafter,
Company of adequate proof of the Annuitant's death, one -half of the fixed
payment amount continues to a designated Payee, if living, and terminates upon
his /her death. Table E is applicable to this Option.
Option 6: Any Other Form:
The Company will pay any other form of Fixed Annuity which is acceptable to it.
How to Elect Method of Payment Option
The Written Request of the Group langecthelElectionrespect
of �ca Method of Payment or
Payee is required to Elect, prior to the
Option and must be received by the Company at least 30 days p
Annuity
Annuity Commencement Date, days Participant dies
Company10ecepveseAd2quate
Commencement Date, within n
Proof of the Participant's Death.
Availability of Options
If any payment to be made under the Elected Option will be less than $50, the
Company may make the payments in the most frequent interval which produces a
payment of at least $50.
The minimum Amount that may be Applied under a Variable or Fixed Dollar Method
of Payment Option is $ 2,000. If the amount is less than 9 2,000, the Company
may pay it in one sum.
The maximum Amount that may be Applied under any Option is $1,000,000. For
the Application of any greater Amount, the Company's consent is required.
Settlement
If the Payee has received payments or was lhorh4haornunder
yet commenced under Variable Dollar
Fixed Dollar Method of Payment Options 1, 2, 3 or 6, any rema�ninamounts
payable under the Option Elected will be paid to the Group yholder
other Payee designated by the Group Policyholder.
CONTRACT MODIFICATION
This Group Annuity Contract may be Modified at any time by written agreement
between the Company and the Group Policyholder.. No such Modification will,
without the written consent of the Group Policyholder, affect the terms,
provisions, or conditions of this Group Annuity Contract which are or may be
applicable to Contributions paid in respect of Participants prior to the date
of such Modification.
However, the Company may at any time and without the consent of the Group
Policyholder or any Participant or other person, but upon 30 days' written
notice to the Group Policyholder, Modify this Group Annuity Contract in any
respect to conform it to changes in tax or other law, including applicable
regulations or rulings.
Modification of Tables
The Company may at any time and w
or any Particiant or other person
Group Policyholder, Modify Tables
no such Modification will affect
Group Annuity Contract which are
respect of Participants prior to
ithout the consent of the Group Policyholder
, but upon 30 days written notice to the
A, B, C, D, and E, or any of them. However,
the terms, provisions or conditions of the
or may be applicable to Contributions paid in
the date of such Modification.
Modification of Guaranteed Sub - Account Riders, If Any
Any Guaranteed Sub - Account Rider may be Modified at any time by written
agreement between the Company and the Group Policyholder. Nosuch
Modification will, without the written consent of the Group Policyholder,
affect the terms, provisions, or conditions of the Rider which are or may be
applicable to Contributions paid in respect of Participants prior to the date
of such Modification.
Modification of Offering of Guaranteed Sub - Accounts
Notwithstanding the other Contract Modification provisions, the Company may
offer or cease offering Guaranteed Sub- Accounts to receive Deposits. No such
offering or cessation of offering shall affect the terms, provisions, or
conditions which are or may be applicable to Contributions paid to any
Guaranteed Sub- Account which is no longer offered by the Company. The Company
will periodically notify the Group Policyholder in respect of Participants of
the current offering of Guaranteed Sub - Accounts.
Modification of Interest Guarantee Period
Notwithstanding the other Contract Modification provis
Guarantee Period of amounts Deposited into Guaranteed
may be Modified by the Company in accordance with the
Period Modification provisions as described in greater
Guaranteed Sub- Account Riders, if any.
ions, the Interest
Sub - Accounts, if any,
Interest Guarantee
detail in the attached
CESSATION OF DEPOSITS
Upon 60 days' written notice to the other, the Group Policyholder or the
Company may declare that, as from the date stated in the notice (that date
being called a Date of Cessation of Deposits), no further Deposits will De
made to certain or all Sub - Accounts of the Group Annuity Contract.
If a Date of Cessation of Deposits has been declared for certain Sub- Accounts,
the Group Policyholder in respect of the Participant may by Written Request
make a Change of Allocation of his /her Contributions. When no Change of
Allocations is received, the Company may return all Contributions affected by
the declaration of the Date of Cessation of Deposits, or allocate such
Contributions to a currently offered Guaranteed Sub - Account.
After the Date of Cessation of Deposits declared in respect of all
Sub - Accounts, no Participant Pnnuity Account will be established.
Options on Date of Cessation of Deposits
Upon declaring the Date of Cessation of Deposits for all Sub - Accounts or upon
receiving notice of its declaration by the Company, the Group Policyholder may
by Written Request Elect one of the following Cessation Options. If the Group
Policyholder has not Elected a Cessation Option within 30 days of the Date of
Cessation, Cessation Option (1) will be deemed to have been Elected.
Cessation Option (1) Maintenance of Each Participant Annuity Account Value:
The Company will maintain each Participant !annuity
Account Value until it is Applied or paid under the
Group Annuity Contract.
Cessation Option (2) Installment Settlement of Guaranteed Contract Values:
The Company will pay the sum of the Variable Contract
Values in respect of Participants as of the Date of
Cessation of Deposits to a person designated in writing
by the Group Policyholaer as the successor insurer of
the Plan or to the Group Policyholder within 30 days of
the date the Cessation Uption is Elected.
The Company will pay the sum of the Guaranteed Contract
Values in respect of Participants as of the Date of
Cessation of Deposits to a person designated in Writing
by the Group Policyholder as the successor insurer_ of
the Plan or to the Group Policyholder in 20 equal
quarterly installments. The amount of the installments
will be the amount determined by the Company on the date
of the first such payment but not less than 5514.80 for
each $10,000 of Guaranteed Contract Values. The first
payment will be made 30 days after the date the
Cessation Option is Elected.
TABLE A - Variable Life Annuity
Monthly Payment for Each $1,000
of Participant Annuity Account Value
Age of Without With Guaranteed Period
Payee Guaranteed Period 5 Years 10 Years 15 Years 20 Years
50 3.83 3.83 3.82 3.80 3,78
55 4.13 4.12 4.10 4.07 4- ;02 _
60 4.52 4.51 4.48 4.41 4.31
65 5.06 5.04 4.97 4.84 4.64
70 5.82 5.77 5.61 5.33 4.94
75 6.93 6.80 6.41 5.82 5.19
If payments commence on any other date than the exact age of the Payee as
shown above, the amount of the monthly payment shall be determined by the
Company on the actuarial basis used by it in oetermining the above amounts.
TABLE B - Joint and One -Half Survivor Variable Annuity
Monthly Payment for Each 31,000
of Participant Annuity Account Value
Age of If Designated Payee Is Age 70
Annuitant 50 55 60 65
50 3.72 3.75 3.78 3.80 3.88 4.10
55 3.92 4.25 4.02 4.39 4.44 4.47
60 4.16 4.81 4.89 4.95
'65- 4.45 4.58 4.70
70 - 4.79 - -4.96
5.14 5.32 5.47 5.59
75 5.18 5.42 5.67 5.94 6.20 6.4z
If payments commence on any other date than the exact age of the Annuitant or
designated Payee as shown above, he the
anbylytpa�determaningethe
determined by the Company on
above amounts.
TABLE C - Income of Specified Amount
- Income of a Specified Period
Monthly Payment for Each. $1,000
of Participant Annuity Account Value
Years Payment
3 27.44
4 20.93
5 17.03
6 14.43
7 12.57
8 11.18
9 10.11
10 9.24
11 8.54
12 7.96
13 7.46
14 7.04
15 6.68
16 6.36
17 6.08
18 5.83
19 5.61
20 5.41
To determine the payment for other frequencies of payment, multiply the above
monthly payment by the following factors:
Factor
Quarterly payment 2.99
Semi- annual payment 5.96
Annual payment 11.81
If payments are for an amount or duration different than that outlined above,
the Company will determine the proper amount or duration using the actuarial
basis used to determine the above Table.
- 28
TABLE D Fixed Life Annuity
Monthly Payment for Each $1,000
of Participant Annuity Account. Value
Age of Without With Guaranteed Period
payee Guaranteed Period 5 Years 10 Years 15 Years 20 Years
- -50 3.83 3.83 3.82 3.80 3.78
55 4.13 4.12 4.10 4.07 4.02
60 4.52 4.51 4.48 4.41 4.31
65 5.06 5.04 4.97 4.84 4.64
70 • 5.82 5.77 5.61 5.33 4.94
75 6.93 6.80 6.41 5.82 5.19
If payments commence on any other date than the exact age of the Payee as
shown above, the amount of the monthly payment shall be determined by the
Company on the actuarial basis used by it in determining the above amounts.
TABLE E - Joint and One -Half Survivor Fixed Annuity
Monthly Payment for Each $1,000
of Participant Annuity Account Value
Age of If Designated Payee Is Age
Annuitant 50 55 60 65 70 75
50 3.72 3.75 3.78 3.80 3.81 3.82
55 3.92 3.98 4.02 4.06 4.08 4.1U
60 4.16 4.25 4.33 4.39 4.44 4.47
65 4.45 4.58 4.70 4.81 4.89 4.95
70 4.79 4.96 5.14 5.32 5.47 5.59
75 5.18 5.42 5.67 5.94 6.20 6.42
If payments commence on any other date than the exact age of the Annuitant or
designated Payee as shown above, the amount of the monthly payment shall be
determined by the Company on the actuarial basis used by it in determining the
above amounts.
DAILY INTEREST GUARANTEE FUND
GUARANTEED SUB- ACCOUNT RIDER
ATTACHED TO AND FORMING PART OF
THE GROUP ANNUITY WNTRACT
The Daily Interest Guarantee Fund is a Guaranteed Sub - Account. time. Ctributionst
may be Deposited into the DalnterestInterest
GuaranteenFundFvaluetand any
compounded
will be earned on the Daily
daily. The Credited Interest Rate may change daily but on an annual effective
basis will not be less than the Guaranteed Interest Rate.
Value of Daily Interest Guarantee Fund
The value of the Daily Interest Guarantee Fund in respect of the Participant
will be determined by adding his/her
interest, and Transfers from other Surrenders, Amounts
Sub - Accounts, and subtracting his /her Partial Surrenders,
Payable on Death, Amounts Applied under a Method of Payment Option, Transfers
to other Guaranteed Sub- Accounts and to Variable Sub - Accounts, Transfer
Charges, Contract Maintenance Charge, Asset Management Fee, and Premium Tax.
This Rider, unless and until Modified, forms part of the Group Annuity
Contract.
Daily Interest Guaranteed Fund Ricer - -1
GJPRANTEED CERTIFICATE FUND
GUARANTEFD SUB- ACCOUNT RIDER
ATTACHED TO AND FORMING PART OF THE GROUP ANNUITY CONTRACT
The Guaranteed Certificate Fund is a Guaranteed Sub - Account, whereby Credited
Interest Rates, not less than the Guaranteed Interest Rate, are credited to
Deposits held for varying Interest Guarantee Periods. The - Company may offer
Certificates to the Group Policyholder who may by Written Request Allocate any
Deposit in respect of the Participant to any one Certificate. The Group
Policyholder in respect of the Participant may Allocate Deposits only to thuse
Certificates currently being offered by the Company.
If th,e Group Policyholder in respect of the Participant Allocates
Contributions to Certificates not currently offered by the Company, the
Company may return such Contributions, Allocate such Contributions to a
currently offered Certificate, or Allocate such Contributions to another
currently offered Guaranteed Sub - Account.
DEFINITIONS
Certificates
Term
Certificate Maturity Date
Interest Guarantee Period
represents the amount Deposited into the
Guaranteed Certificate Fund under each
Interest Guarantee Period. Each Certificate
has its own interest rate and Term.
the duration of the Certificate which begins
on the first day of the calendar quarter
following the date of the Deposit and ends on
the date specified by the Company. The number
of Terms available may be 1imitea by the
Company.
the last day of the Term.
the period from the date of the Deposit to the
Certificate Maturity Date.
Credited Interest Rate
Subject to the provisions on Application of Certificate on Partial Surrender,
Surrender, or Retirement, a Deposit to the Guaranteed Certificate Fund will
earn a Credited Interest Rate for the Certificate's Interest Guarantee
Period. The Credited Interest Rate will be compounded daily, and on an annual
effective basis will not be less than the Guaranteed Interest Rate.
Certificate Maturity
Prior to the Certificate Maturity Date, the Company will offer a Guaranteed
Sub - Account into which the value of the Certificate will be Deposited on its
Maturity Date. The Guaranteed Sub - Account so offered may be either the
Guaranteed Certificate Fund or another .Guaranteed Sub- Account.
Guaranteed Certificate Fund Rider -
GUAIANTEED CERTIFICATE FUND SUB- ACCOUNT RIDER (continued)
If the Guaranteed Certificate Fund is offered, the value of the Certificate on
its Maturity Date will establish a new Certificate which has its . own interest
rate and Term. The Credited Interest Rate of this new Certificate may be
higher or lower than the•Credited Interest Rate of any other Certificate or
Deposit.
If another Guaranteed Sub - Account is offered, the value of the Certificate on
its Maturity Date will be Deposited into that Guaranteed Sub- Account. The
Credited Interest Rate of this Deposit may be higher or lower than the
Credited Interest Rate of any other Deposit.
The Participant may Elect by Written Request to Transfer the value of the
Certificate on.its Maturity Date.
Interest Guarantee Period Modification
On 30 days' written notice to the Group Policyholder in respect of the
Participant the Company may Modify the Interest Guarantee Period of amounts
previously Deposited into the Guaranteed Certificate Fund.
If such Modification is made, the Group Policyholder in respect of the
Participant may, within 30 days of notification, by Written Request elect the
Transfer or Surrender of any or all of these amounts without incurring the
Contingent Deferred Sales Charge, and interest will be applied to the date of
Transfer or Surrender at the Credited Interest Rate applicable prior to the
date of Modification.
Transfers
The following provisions will apply to the Transfer of amounts to or front the
Guaranteed Certificate Fund:
if any amount has been Transferred out of the Guaranteed Certificate Funo,
no Transfer into the Guaranteed Certificate Fund may be made for 90
continuous days from the date of the Transfer out.
• a Transfer from the Guaranteed Certificate Fund may be made only on the
Maturity Date of the Certificate under the Guaranteed Certificate Fund.
The amount that is then available for Transfer is the value of that
Certificate on its Maturity Date.
• the Group Policyholder's Written Request to Transfer from the Guaranteed
Certificate Fund must be received by the Company no later tnan 15 days
prior to the Maturity Date of the Certificate,
the terms of the provisions on Transfers will apply to any Transfer to or
from the Guaranteed Certificate Fund.
Guaranteed Certificate Fund Rider -
GJ RANTEED CERTIFICATE FUND SUB - ACCOUNT RIDER (continued)
Application of Certificate On Death, Partial Surrender, Surrender, or
Retirement
If any amount Deposited into a Certificate of the Guaranteed Certificate Funa
is Applied-prior-to-the-Maturity Date -of -the--Cert-i-ficate_ under__the provisions_
concerning Amount Payable On Death of Participant, Partial Surrender,
Surrender, or Retirement the Amount Applied will receive the Credited Interest
Rate from the date of Deposit to the date the Amount is Applied.
Value of Guaranteed Certificate Fund
The value of the Guaranteed Certificate Fund in respect of the Participant
will be determined by adding his/her Guaranteed Sub - Account's Contributions,
interest, and Transfers from other Guaranteed Sub - Accounts ano_from Variable
Sub - Accounts, and subtracting his /her Partial Surrenders, Surrenders, Amounts
Payable on Death, Amounts Applied under a Method of Payment Option, Transfers
to other Guaranteed Sub- Accounts and to Variable Sub - Accounts, Transfer
Charges, Contract Maintenance Charge, Asset Management Fee, anti Premium Tax.
This Rider, unless and until Modified, forms part of the Group Annuity
Contract
Guaranteed Certificate Fund Rider -
Amendment No. 1 -85C attached to and forming part of
Croup Annuity Contract No.
issued by
The Great -lest Life and Annuity Insurance Company
WHEREAS, City of Vernon
Thereinafter referred to as Croup Policyholder) had previously entered into a
Group Annuity Contract No. 98270GP with the Great-West Life and Annuity
Insurrance Catpany (hereinafter referred to as the Insurance.Qaapany),
»D S, the Insurance Company wishes to waive the Contingent Deferred
Sales Charge on certain monies within the Contract after. a Participant has
been covered under this Croup Annuity Contract for 15 or more years,
AND WHEREAS, the Insurance Company wishes. to improve the guaranteed annuity
purchase rates pertaining to fixed annuity parent options under this Croup
Annuity Contract,
NOW IIIEREFORE, the parties hereto agree that as of Deceneh r 1, 1988 this
Croup Annuity Contract is hereby amended by:
1) Adding to the "Provisions Relating to Amount Payable on Leath, Partial
Surrender and Surrender" section of the Contract, under the sub - section
titled "Contingent Deferred Sales Charge ", a new third paragraph with the
language included in the appropriate sub- section attached hereto and
marked as 7ndment No. 1 -85C, and
2i Deleting Tables C, D, and E of the contract and replacing therefor the
Tables C, D, and E attached hereto and marked as Amendment 1 -85C.
Dated at Denver, Colorado on June 30, 1986, by The Clceat -Test Life and Annuity
Insurance Carpany.
evit-4-0,g,;
Vice - President and Secretary President
t,
For the Actuary
knendment No. 1 -85C
PROJ1 SI O S HELATirG TO AMOUNT PAYAELE ON DEATH, PAF,7 IAL SURE %D
AND SURR ENDER (continued)
Contingent Deferred Sales Charoe -
Notwitnstanoing tne immediately preceding two paragraphs, a Contingent
Deferred Sales 'Charge will not be deducted for any Participant rho has
participated under this Group Annuity Contract 15 or more years from tne
Participant Effective Date.
TA8_E C Income of Specifiec Amount
- Income of a Specifie4 ierinc
Monthly Payment for Each $1,000
of Participant Annuity Account Value
Years Pavment
3 28.61
4 21.82
5 17.75
6 15.04
7 13.10
8 11.66
9 10.54
10 9.63
11 8.90
12 8.30
13 7.76
14 7.34-
15 6.90
16 6.63
17 6.34
18 6.08
19 5.85
20 5.64
To determine the payment for other freouencies of payment, multiply the above
monthly payment by the following factors:
actor
Quarterly payment 2.99
Semi- annual payment 5.96
Annual payment 11.81
If payments are for an amount or duration different than that outlinei above,
the Company will determine the proper amount or duration using the actuarial
basis used to determine the above Table.
Amendment No. 1-85C
rutureFuiidt ..
•
APPLICATION FOR GROUP DEFERRED COMPENSATION ANNUITY CONTRACT
Exact Name- e2 ' ".1 of Vex {�'0
(herein called the Group Policyholder) applies to Great -West Life & Annuity Insurance Company for a Group Deferred
Compensation Annuity Contract (herein called the Group Annuity Contract) in the form of the copy attached to this Application.
It is agreed that the Group Policyholder will accept the Group Annuity Contract when issued. q
Specify the effective date of the Group Annuity Contract -L�'r '"1
(which is not earlier than the first day of the year in which this Application ha been made) T_
Specify the name of the Deferred Compensation Plan.e of. �'� �� CX re-4
This Group Annuity Contract is only available to policyholders whose Deferred Compensation Plan is an eligible State deferred
compensation plan described in Section 457(b) of the Internal Revenue Code of 1954, as amended.
The Insurance Company requires that a copy of the currently effective plan document accompany this application, for its
information.
PAYMENTS AND VALUES PROVIDED BY THE CONTRACT APPLIED FOR MAY BE VARIABLE AND NOT
GUARANTEED AS TO DOLLAR AMOUNT.
Group Policyholder's address k'O J Santa k, AVe- �-���-
\Je.vnon 1 LA Goosa
\ Q- ( morn Eire.
Dated at this
Agenti Broker
Application
Group Deferred Compensation Annuity
G520 (7 -86)
w
day of
�ec.exv.i�,r
G:4-9 of \Jurn°r�
Name of Grou Policy Icier
KK 72--- VA S
By Signature
C..- A clA cL nr\C sth-cato r
Title
Great -West
LIFE £ ANNU f V x6URANCE COWAN,'
P.O. Box 1400
Denver, Colorado 80201
CITY COUNCIL
LEONIS C. MALBURG, Mayor
THOMAS A. YBARRA, Mayor Pro -Tem
Wm. "BILL" DAVIS
H. "LARRY" GONZALES
W. MICHAEL McCORMICK
TELEPHONES
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
CITY HALL
OFFICERS
BRUCE V. MALKENHORST,
City Administrator /City Clerk
DAVID B. BREARLEY,
City Attorney
VICTOR H. VAITS,
Director of Community Services
LEWIS R. ADAMS,
Director of Water & Power
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
October 19, 1989
Ms. Catherine A. Dobbin
Vice President, Public Ma'r.kets
Great -West Life
3699 Wilshire Blvd., Suite 660
Los Angeles, California 90010
Re: Amendment to City of Vernon
Deferred Compensation Plan
Dear Cathy:
LARRY SPADT,
Fire Chief
AL ESPINOZA,
Police Chief
In Reply Refer to:
Enclosed herewith are the original contracts pertaining to Resolution
No. 5671 of the City of Vernon which amends our deferred compensation
plan. I have received copies of these two contracts which were signed
by Ms. Sherri Weinstein; however, it is the original contracts that I
need signed. One contract is marked Exhibit "B" and the other Exhibit
"A Please execute one of each and return to us for our original
records and retain the other for your files.
Cathy, this has been a very foggy issue for me from the beginning. I
am sorry for the delay in getting this to you, as these were adopted on
September 5, 1989. Please return these to me as soon as possible so
that they may be filed with the official records of the City.
If you have any questions, please do not hesitate to call me.
Very truly yours,
eo
Gloria J. Orosco
Chief Do -uty City Clerk
GJO /hr
Enclosures
de Oct. 19, 1989
4'004 Great -West Life - Deferred Compensation Contracts
Enclosed please find a copy of a letter dated 10 /10/89 from Ms. Dobbin
of Great -West Life together with two copies each of Contracts used as
Exhibits A and B to Resolution No 5671 which I have approved as to form.
Please have the Mayor execute as well as yourself and return to Ms.
Dobbin pursuant to her letter.
If you have any questions, please do not hesitate to call me..
EMR BRUCE V MALKENHORST
CITY ADMINISTRATOR /CITY CLERK pAVIQ B. BREARLEY
TO 4305 SANTA FE AVE
VERNON CA 90058 -0805 CITY ATTORNEY
2440 S. HACIENDA BLVD., #223
ih1ACIENDA HEIGHTS, CA 91746
(818) 336 -3408
L
Great West Life
October 10, 1989
Mr. David Brearley
City Attorney
City of Vernon
4305 Santa Fe Avenue
Vernon, California 90058
Group Department
Suite 660
3699 Wilshire Blvd.
Los Angeles, California 90010
Telephone (213) 387 -3071
RE: City of Vernon, Policy # 98270
Deferred Compensation Annuity Contract
Dear David:
Our attorneys have finished reviewing the final versions of the
two special contracts you requested we sign in order to be
considered an additional carrier under the City of Vernon's
Deferred Compensation Program. Ms. Sherri K. Weinstein, Manager,
Government Market has executed these on behalf of our company.
Once all copies have been executed by the City, please have one
set returned to my attention for our files. If we can be of
further assistance, please don't hesitate to contact me.
Very truly yours,
1\doblt)-8'N
Catherine A. Dobbin
Vice President
Public Markets
CAD /mlh
brearley.O10
cc: Mr. Bruce Malkenhorst, City Administrator, City of Vernon
THE GREAT -WEST LIFE ASSURANCE COMPANY
U. S HEADQUARTERS -- ENGLEWOOD, COLORADO
07/
Great -West Life
October 10, 1989
Gn OC7 er
�MIH1STRq� VFR o ��
Group Department
Suite 660 R NyoFfice
3699 Wilshire Blvd.
Los Angeles, California 90010
Telephone (213) 387 -3071
Mr. David Brearley
City Attorney
City of Vernon
4305 Santa Fe Avenue
Vernon, California 90058
RE: City of Vernon, Policy #98270
Deferred Compensation Annuity Contract
Dear David:
Our attorneys have finished reviewing the final versions of the
two special contracts you requested we sign in order to be
considered an additional carrier under the City of Vernon's
Deferred Compensation Program. Ms. Sherri K. Weinstein, Manager,
Government Market has executed these on behalf of our company.
Once all copies have been executed by the City, please have one
set returned to my attention for our files. If we can be of
further assistance, please don't hesitate to contact me.
Very truly yours,
b,4
1)010i)-rte
Catherine A. Dobbin
Vice President
Public Markets
CAD /mlh
brearley.010
cc:
THE GREAT -WEST LIFE ASSURANCE COMPANY
U.S- HEADQUARTERS- ENGLEWOOD. COLORADO
/r) CITY COUNCIL
LEONIS C. MALBURG, Mayor
THOMAS A. YBARRA, Mayor Pro -Tem
Wm. "BILL" DAVIS
H. "LARRY" GONZALES
W. MICHAEL McCORMICK
TELEPHONES
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
CITY HALL
OFFICERS
BRUCE V. MALKENHORST,
City Administrator /City Clerk
DAVID B. BREARLEY,
City Attorney
VICTOR H. VAITS,
Director of Community Services
LEWIS R. ADAMS,
Director of Water & Power
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
August 9, 1989
Ms. Catherine A. Dobbin
Vice President
Public Markets
Great -West Life
3699 Wilshire Blvd., #660
Los Angeles, CA 90010
Re: Group Deferred Compensation
No. 98270 GP
Dear Ms. Dobbin:
Annuity Contract
LARRY SPADT,
Fire Chief
AL ESPINOZA,
Police Chief
In Reply Refe to;.-
The City Council of the City of Vernon considered the
amendment to the City of Vernon's deferred compensation plan last
night during its adjourned regularly scheduled meeting.
The City Council adopted Resolution No. 5643, a copy of which
is enclosed for your convenience, which requires Great - West Life
to execute two agreements in order for Great -West Life to be an
alternative investment program for the City's employees. A copy
of the agreements are also attached for your convenience.
Gloria Orosco, the Chief Deputy City Clerk in Bruce's office,
has the original contracts which need to be executed by an
authorized officer of the company.
If you have any questions concerning these matters, please do
not hesitate to call me.
Very truly yours,
David B. Brearle
City Attorney
DBB:jl
Enclosures
cc: Mr. Bruce V. Malkenhorst (w /o encls.)
CITY COUNCIL
LEONIS C. MALBURG, Mayor
THOMAS A. YBARRA, Mayor Pro -Tem
Wm. "BILL" DAVIS
H. "LARRY" GONZALES
W. MICHAEL McCORMICK
TELEPHONES
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
CITY HALL
OFFICERS
BRUCE V. MALKENHORST,
City Administrator /City Clerk
DAVID B. BREARLEY,
City Attorney
VICTOR H. VAITS,
Director of Community Services
LEWIS R. ADAMS,
Director of Water & Power
LARRY SPADT,
Fire Chief
AL ESPINOZA,
Police Chief
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 In Re Refer to:
September 19, 1989
Ms. Catherine A. Dobbin
Vice President
Public Markets
Great -West Life
3699 Wilshire Blvd., #660
Los Angeles, CA 90010
Re: Group Deferred Compensation Annuity Contract
No. 98270 GP
Dear Ms. Dobbin:
Pursuant to a letter dated August 21, 1989, from Marilyn R.
Collister, an attorney for Great -West, the City Council on
September 5, 1989, adopted Resolution No. 5671, a copy of which
is enclosed for your convenience, which repealed Resolution No.
5643 and requires Great -West Life to execute two agreements in
order for Great -West Life to be an alternative investment program
for the City's employees. A copy of the agreements are also
attached for your convenience.
Gloria Orosco, the Chief Deputy City Clerk in Bruce's office,
is sending you under separate cover the original contracts which
need to be executed by an authorized officer of the company.
If you have any questions concerning these matters, please do
not hesitate to call me.
Very truly yours,
4)2-ef-4,/
David B. Brearley
City Attorney
DBB:jl
Enclosures
cc: Mr. Bruce V. Malkenhorst (w /o encls.)
LEONIS-C. MALBURG, Mayor
THOMAS A. YBARRA, Mayor Pro -Tem
Wm, "BILL" DAVIS
H. "LARRY" GONZALES
W. MICHAEL McCORMICK
TELEPHONES
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.
CITY HALL
OFFICERS
BRUCE V. MALKENHORST,
City Administrator /City Clerk
DAVID B. BREARLEY,
City Attorney
VICTOR N. VAITS,
Director of Community Services:
•
LEWIS R. ADAMS,
Director of Water &Power
LARRY SPADT,
Fire Chief
AL ESPINOZA,
Police Chief
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 !n Reply Refer to:
September 19, 1989
Ms, Catherine A. Dobbin
Vice President
Public Markets
Great -West Life
3699 Wilshire Blvd., #660
Los Angeles, CA 90010
Re: Group Deferred Compensation Annuity Contract
No. 98270 GP
Dear Ms. Dobbin:
Pursuant to a letter dated August 21, 1989, from Marilyn R.
Collister, an attorney for Great -West, the City Council on
September 5, 1989, adopted Resolution No 5671, a copy of which,:_
is enclosed for your convenience, which repealed Resolution No.
5643 and requires Great -West Life to execute two agreements in
order for Great -West Life to be an alternative investment program
for the City's employees. A copy of the agreements are also:
attached for your convenience.
Gloria Orosco, the Chief Deputy City Clerk in Bruce's office,,;
is sending you under, separate cover the original contracts which
need to be executed by an authorized officer of the company.
If you have any questions concerning these matters, please do .
not hesitate to call me.
DBB :ji
Enclosures
Bruce V. Malkenhorst (w /o encls,
City Council Minutes August 9, 1988
page 3
Communication from Luis Espinoza, Chief of Police, dated
July 7, 1988, was presented, requesting authority and funds for
Sgt. Thomas Igyarto to attend a professional training course entitled
"Leadership Through Motivation, Ethics and Values" to be held in
San Diego September 14 -16, 1988 with an expense allowance of
$540.55 of which approximately $519.55 is POST reimbursable for a
total cost to the City of approximately $21.00.
It was moved by McCormick, seconded by Gonzales, that
authority be granted to issue warrant to Sgt. Thomas Igyarto in the
amount of $540.55 for his attendance to a course entitled
"Leadership Through Motivation, Ethics and Values" in San Diego
on September 14 -16, 1988. (Approximately $519.55 will be POST
reimbursable.) Motion carried.
Communication from Bruce V. Malkenhorst, Director of
Personnel, dated August 2, 1988, . was presented, transmitting the
agenda for the Personnel Committee Meeting to be held August 8,
1988 for approval of recommendations contained therein.
It was moved by Gonzales, seconded by Davis, that the
actions listed on the agenda of the Personnel Committee
meeting held August 8, 1988 be approved as indicated. Motion
carried.
Communication from Bruce V. Malkenhorst, Director of
Finance, dated August 4, 1988, was presented, transmitting the
agenda for the Finance Committee Meeting to be held August 8, 1988
for approval of recommendations contained therein.
It was -moved by Ybarra, seconded by Davis, that the
recommendations listed on the agenda of the Finance Committee
Meeting held August 8, 1988 be approved as indicated. Motion
carried.
Communication from Victor Vaits, Director 'of Community
Services, dated August 1, 1988, was presented, advising that in
accordance with the Public Improvement Agreement with KBB
Investments, Inc., construction of a sewer in Ayers Avenue and 26th
Street has been completed. It is hereby recommended that the work
be accepted and authority be granted to issue payment to KBB
Investments, 123 S. Figueroa St., Suite 400, Los Angeles, CA 90012,
in the amount of $60,646 for the City's share of the cost.
Victor Vaits, `Director of Community Services, briefly
addressed the Council advising that the revised figure for the
City's share of the cost on the aforementioned improvement is
$61,757, and recommended that the work be accepted with, 90% of the
cost due and payable now, with the remaining 10% due 35 days after
acceptance.
It was moved by Ybarra, seconded by McCormick, to accept
the work for sewer construction in Ayers Avenue and 26th Street and
to approve payment to KBB Investments, Inc. in the amount of
$61,757 with 90% payable now and 10% payable 35 days after
acceptance. Motion carried.
Communication from Victor Vaits, Director of Community
Services, dated August 2, 1988, was presented, advising that Parcel
Map No 19846 has been submitted by Dubron & Associates for,
investigation and report in accordance with the Subdivision Map
Act. Transmitted herewith as evidence are` the following documents:
1. Print of Parcel Map No. 19846
2. Report on Parcel Map No. 19846
3. Excerpts from Subdivision Map Act
Finance Minutes August 8, 1988
Page 2
It was moved by Ybarra, seconded by Gonzales, that
recommendation be made to City Council to retain Technical Waste,
Inc., to dispose of our hazardous waste at a cost of approximately
$43,668 charging the Water Department accordingly. Motion
carried.
Communication from Bruce V. Malkenhorst, Director of
Finance, dated August 2, 1988, was presented, advising that the
Fire Department's Station No. 1 is in need of additional bathroom
facilities to accommodate the new Firefighters that are being hired.
The Fire Department budgeted funds in the amount of $10,000 for this
project, and it is possible that much of the work can be done by
Community Service and Fire Department personnel. It is hereby
recommended that authority be granted to remodel Station No. 1 with
the additional bathroom facility at a cost not to exceed $10,000.
It was moved by Ybarra, seconded by Gonzales, that
recommendation be made to City Council to approve the additional
bathroom facilities at Fire Station No. 1 at a cost not to exceed
exceed $10,000. Motion carried.
Communication from Bruce V. Malkenhorst, Director of
Finance, dated August 2, -1988, was presented, transmitting a report
prepared by The Great -West Life Assurance Company comparing the
features and earnings of their deferred compensation plan with
ICMA, and offering their plan for employee participation along with
the ICMA plan currently being used. It is hereby recommended that
approval be granted to add the Great -West deferred compensation
program as an option for City employees.
It was moved by Gonzales, seconded by Ybarra, that
recommendation be made to City Council to approve the deferred
compensation program offered by The Great -West Life Assurance
Company, as an option for City employees. Motion carried.
Communication from Bruce V. Malkenhorst, Director of
Finance dated August 4, 1988, was presented, advising that the
police department is in need of replacing unit Nos. 93, 94, and 97,
and they are also in need of two additional vehicles. Los Angeles
County has awarded its bid for the purchase of its vehicles to Sopp
Chevrolet and it is hereby recommended that the five (5) units be
purchased from Sopp Chevrolet at an approximate cost of $62,350.00
and unit Nos. 93, 94, and 97 be used as pool cars.
It was moved by Ybarra, seconded by Gonzales, that
recommendation be made to City Council to approve the purchase
of five vehicles from Sopp Chevrolet at an approximate cost
of $62,350 and to use unit Nos. 93,94, and 97 as pool cars.
Motion carried.
Communication from Bruce V. Malkenhorst, Director of
Finance, dated August 4, 1988, was presented, advising that the
1975 Survey Truck (Unit #254) used by the Community Services
Department needs to be replaced due to continuous engine trouble
which is becoming extremely costly. It is hereby recommended that
approval be granted to go out -to -bid for a new 1988 Chevrolet
Suburban Truck at a cost of approximately $16,000. If approval is
granted Unit #254 will be used as a trade -in for an approximate
value of $1,000.
It was moved by Gonzales, seconded by Ybarra, that
recommendation be made to City Council to approve going out to bid
for a 1988 Chevrolet Suburban Truck at a cost of approximately
$16,000 and to use Unit #254 as a trade -in. Motion carried.