Resolution No. 7254s
n
RESOLUTION NO, 7254
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c
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON ADOPTING THE ICMA RETIREMENT
CORPORATION MONEY PURCHASE PLAN AND APPROVING
AND AUTHORIZING THE EXECUTION OF THE ICMA
RETIREMENT TRUST ADOPTION AGREEMENT AND
ADMINISTRATIVE SERVICES AGREEMENT AND
APPOINTING THE; CITY ADMINISTRATOR TO BE THE
COORDINATOR OF THIS PLAN ON BEHALF OF THE
CITY OF VERNON
WHEREAS, the City of Vernon has employees rendering
valuable services and
WHEREAS, the establishment of a money purchase
retirement plan benefits employees by providing funds for
retirement and funds for their beneficiaries in the event of
death; and
WHEREAS, the City Administrator has recommendedto the
Finance Committee at their meeting held on December 14, 1998-that
the City of Vernon adopt a money purchase retirement plan (the'
"Plan"") pursuant to Section 401(a) of the Internal Revenue Code;
and
WHEREAS, the City Administrator has further recommended
to the Finance Committee at their meeting held on December_14,
1998 that the Plan be administered by the ICMA Retirement
Corporation and that the funds held under such plan be invested
in the ICMA Retirement Trust, a trust established by public
employers for the collective investment of funds held under their
retirement and deferred compensation plans.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
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SECTION 1: That the City Council of the City of Vernon
does hereby find and determine that the recitals contained
hereinabove are true and correct.
SECTION 2: The City Council of the City of Vernon
hereby adopts the Plan in the form of the ICMA Retirement
Corporation Prototype Money Purchase Plan and Trust, attached
hereto as Appendix A.
SECTION 3 The City Council of the City of Vernon
hereby approves the Declaration of Trust of the ICMA Retirement
Trust, attached hereto as Appendix B, the ICMA Retirement
Corporation Prototype Money Purchase Plan & Trust Adoption
Agreement (the "Adoption Agreement"), attached hereto as Appendix
C and the Administrative Services Agreement, attached hereto as
Appendix D.
SECTION 4: The City Council of the City of Vernon
hereby authorizes the Mayor and City Clerk to execute the
Adoption Agreement and, the Administrative Services Agreement for,
and on behalf of, the City of Vernon, intending this execution to
be operative with respect to any retirement or deferred
compensation plan subsequently established by the City, if the
l
assets of the plan are to be invested in the ICMA Retirement
1
Trust.
SECTION 5: The City Council of the City of Vernon
hereby agrees thattheCity serve as trustee under the Plan and
to invest funds held under the Plan in the ICMA'Retirement 'Trust.
SECTION 6: The City Administrator shall be the
coordinator for the Plan and shall receive necessary reports and
notices from the ICMA Retirement Corporation or the ICMA
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{ e ! t
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S
1 Retirement Trust, and shall cast, on behalf of the City, any
2 required votes under the ICMA Retirement Trust. Administrative
3 duties to carry out the Plan may be assigned to the appropriate
4 departments.
5 SECTION 7: The City Council of the City of Vernon
6 hereby authorizes the City Administrator to execute all necessary
7 agreements with the ICMA Retirement Corporation incidental to the
8 administration of the Plan.
9 SECTION 8: The City Clerk of the City of Vernon shall
10 certify to the passage of this resolution and thereupon and
11 thereafter the same shall be in full force and effect.
12 APPROVED AND ADOPTED this 15th day of December, 1998.
13
144 '
ONIS C. MALBURG, Mayor
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ATTEST:
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BRUCE V. MALKENHORST, City Clerk
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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. 7254, was duly adopted by the City Council of the
City of Vernon at a regular meeting of the City Council duly held
on Tuesday, December 15, 1998 and thereafter was duly signed by
the Mayor of the City of Vernon.
f/
BRUCE V. MALKENHORST, City Clerk
(SEAL)
II
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SUPPORTING
DOCUMENTS
Y
EXHIBIT 20
BASIC PLAN DOCUMENT
ICMA RETIREMENT CORPORATION
PROTOTYPE MONEY PURCHASE
PLAN & TRUST
BASIC DOCUMENT 001
.......................
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2C:,
EXHIBIT 2C (continued)
2.06 Code. The Internal Revenue Code of 1986, as amended from time to time.
2.07 Covered Employment Classification. The group or groups of Employees
elgihe Empble to loyer
yen
ke
and/or have contributions to this Plan made on their behalf, as specified
in the Adoption Agreement.
2.08 Disability. A physical or mental impairment which is of such permanence and degree
that a Participant is unable because of such impairment to perform any substantial gainful
activity for which he/she is suited by virtue of his/her experience, training, eless than
ucation
and that has lasted, or can be expected to last, for a continuous period
of not
twelve (12) months, or can be expected to result in death. The permanence and degree.
of such impairment shall be supported by medical evidence.
2.09 Earnings -
(a)' General Rule- Earnings, which form the basis for computing Employer Contribu-
tions, are all of each Participant's W-2 earnings which are actually paid to the Par-
ticipant during the Plan Year, plus any contributions made pursuant to a salary re-
duction agreement which are not includible in the gross income of he Employee
under section 125, 402(e)(3), 402(h)(1)(B), 403(b), 414(h)(2), or457
7() of
fithe
Code. Unless the Employer elects otherwise in the Adoption Agreement,
gs
shall exclude overtime compensation and bonuses. Earnings, in the case of a
self-employed individual, shall mean earned income.
(b) Limitation on Earnings. Notwithstanding the foregoing, effective as of the first
Plan Year beginning on or after January 1, 1989, and before January 1, 1994, the
annual Earnings of each Participant taken into account for determining all benefits
provided under the Plan for any Plan Year shall not exceed $200,000. This limita-
tion shall be adjusted by the Secretary of the Treasury at the same time and in the
same manner as under section 415 (d) of the Code, except that the dollarintease ih
effect on January 1 of any calendar year is effective for years beginning
in suc
calendar year and the first adjustment to the $200,000 limitation is effective on
January 1,1990.
For Plan Years beginning on or after January 1, 1994, the annual Earnings of each
Participant taken into account for determining all benefits provided under the Plan
for any Plan Year shall not exceed $150,000, as adjusted for increases in the cost -of -
living in accordance with section 401(a)(17)(B) of the Code. The cost -of -living
adjustment in effect for a calendar year applies to any determination period begin-
ning in such calendar year.
If a determination period consists of fewer than twelve (12) months, the annual
Earnings limit is an amount equal to the otherwise applicable annual Earnings limit
multiplied by a fraction, the numerator of which is the number of months in the
short determination period, and the denominator of which is twelve 02).
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EXHIBIT 2C (continued)
to section 415(d) of the Code); (ii) received compensation from the Employer in excess
of $50,000 (as adjusted pursuant to section 415 (d) of the Code) and was a member of the
top paid group for such year, or (iii) was an officer of the Employer and received compen-
sation during such year that is greater than fifty percent (50%) of the dollar limitation in
effect under section 415(b)(1)(A) of the Code. The term "Highly Compensated Em-
ployee" also includes (i) any Employee who is both described in the preceding sentence if
the term "determination year" is substituted for the term "look -back year" and one (1) of
the one hundred (100) Employees who received the most compensation from the Em-
ployer during the Plan Year, and (ii) any Employee who is a five percent (5%) owner at
any time during the look -back year or determination year.
If no officer has satisfied the compensation requirement of (iii) above during either a
determination year or a look -back year, the highest paid officer for such year shall be
created as a Highly Compensated Employee.
For the purposes of determining who is a "Highly Compensated Employee," the "determi-
nation year" shall be the Plan Year, and the "look -back year" shall be the twelve (12)
month period immediately preceding the determination year.
A highly compensated former Employee includes any Employee who separated from ser-
vice (or was deemed to have separated) prior to the determination year, performs no
service for the Employer during the determination year, and was a highly compensated
active Employee for either the separation year or any determination year ending on or
after the Employee's fifty-fifth (55th) birthday.
If an Employer is, during a determination year or look -back year, a family member of
either a five percent (5%) owner who is an active or former Employee or a Highly Com-
pensated Employee who is one (1) of the ten (10) most Highly Compensated Employees
ranked on the basis of compensation paid by the Employer during such year, then the
family member and the five percent (5%) owner or top ten (10) Highly Compensated
Employee shall be aggregated. In such case, the family member and five percent (5%)
owner or top ten (10) Highly Compensated Employee shall be treated as a single Em-
ployee receiving compensation and Plan contributions or benefits equal to the sum of
such compensation and contributions or benefits of the family member and five
epe reis ent
(5%) owner or top ten (10) Highly Compensated Employee. For purposes o
Sec-
tion, family member includes the spouse, lineal ascendants and descendants of the Em-
ployee or former Employee and the spouses of such lineal ascendants and descendants.
The determination of who is a Highly Compensated Employee, including the determina-
tions of the number and identity of Employees in the top -paid group, the top one hundred
(100) Employees, the number of Employees treated as officers and the compensation that
is considered, will be made in accordance with section 414(q) of the Code and the regu-
lations thereunder.
2.14 Hour of Service. Each hour for which an Employee is paid or entitled to payment for the
performance of duties for the Employer.
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I
EXHIBIT 2C (continued)
2.21 Plan. This Prototype Plan, as established by the Employer, including any elected provi-
sions pursuant to the Adoption Agreement.
2.22 Plan Administrator. The Prototype Sponsor or any successor Plan Administrator.
2.23 Plan Year. The twelve (12) consecutive month period designated by the Employer in the
Adoption Agreement.
2.24 Prototype Plan. The ICMA Retirement Corporation Prototype Money Purchase Plan.
2.25 Prototype Sponsor. The ICMA Retirement Corporation.
2.26 Trust. The Trust created under Article Vll of the Plan which shall consist of all of the
assets of the Plan derived from Employer and Participant contributions
distributions under
t e Plan
-
plus any income and gains thereon, less any losses, expenses
pane and Beneficiaries.
Ill. ELIGIBILITY
3.01 Service Except as provided in Sections 3.02 and 3.03 of the Plan, an Employee within
riod
the Covered Employment Classification who has completed a twelve
o imonthP nod
of Service shall be eligible to participate in the Plan at the beginning the Payroll co
next commencing thereafter. The Employer may elect in the Adoption Agreement
waive or reduce the twelve (12) month Period of Service.
If the Employer maintains the plan of a predecessor employer, service with such employer
shall be treated a Service for the Employer.
3.02 Age. The Employer may designate a minimum age requirement, not to exceed age
twenty-one (21), for participation. Such age, if any, shall be declared in the Adoption
Agreement.
3.03 Return to Covered Employment Classification. In the event a Participant is no longer a
member of Covered Employment Classification and becomes ineligible
o akeill become
contri-
butions and/or have contributions made on his/her behalf, such Employee ome
eligible for contributions immediately ii ion returning to Covered Employment
Classi-
fication. if such Participant incurs a Break in Service, eligibility will be determined un-
der the Break in Service rules of the Plan.
In the event an Employee who is not a member of a Covered Employment Classification
becomes a member, such Employee will be eligible to participate immediately if such
Employee has satisfied the minimum age and service requirements and would have other-
wise previously become a Participant.
of Service with
loyer
3 Service toward elligibility, ifore a ncluding Periods of Servk in Service. All ice before a Break in Service. are counted
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2C:7
EXHIBIT 2C (continued)
4.06 Deductible Employee Contributions. The Plan will not accept deductible employee con-
tribucions which are made for a taxable year beginning after December 1986. Contribu-
tions trade prior to that date will be maintained in a Deductible Employee Contribution
Account. The Account will share in the gains and losses under the Plan in the same
manner as described in Section 7.06 of the Plan. Such Account shall be at all times
nonforfeitable by the Participant.
4.07 Changes in Participant Election. A Participant may elect to change hisAwr rate of Matched
Participant Contributions or Voluntary Participant Contributions at anytime or during
an election period as designated by the Employer. A Participant may discontinue such
contributions at any time or during an election period as designated by the Employer.
4.08 Portability of Benefits.
(a) ' An Employee within the Covered Employment Classification, whether or not he/
orrohe ll over hs/Eied ter �emc in plan qualified underrequirementsnimum age and service f Article 111, May 401(a) or 403(a) transfer
or
Code to this Plan, provided:
(1) The distribution is on account of termination or discontinuance of the planof
the distribution becomes payable on account of the Employee's separation
and
from service, death, disability or after the Employee attains age fifty-
one -half (59-1/2); and the form and nature of the distribution from the other
plan satisfies the applicable requirements under the Code to make the transfer
or rollover a nontaxable transaction to the Employee;
(2) The amount the sixtiethistributed from the plan is transferred
60th) day after distribution on wasmade later than
from the plan; xtie h (
(3) In the case of a rollover, the amount transferred to this con doesnot
nottlons exceed
the amount of the distribution reduced by the Employee
to the plan (other than accumulated deductible voluntary contributions).
Such transfer or rollover may also be through an Individual Retirement Plan quali-
fied under section 408 of the Code where the Individual Retirement Plan was used
as a conduit from the prior plan and the transfer is made in accordance with he
rules provided at (a) through (c) of this paragraph and the transfer does not include
any personal contributions or earnings hereon the Participant may have made to
the Individual Retirement Plan.
The amount transferred ited in the Trust and
Portable Benefits Account shall
lSuch Account shall be one hundred shall pe credited (100%)
vested in the Employee.
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EXHIBIT 2C (continued)
(b) Special Rules.
(1) Multiple Use: If one (1) or more Highly Compensated Employees participate
in both a CODA and a plan subject to the ACP test maintained by the Em-
ployer, and the sum of the actual deferral percentage under the CODA ("ADP")
and ACP of those Highly Compensated Employees subject to either or both
tests exceeds the Aggregate Limit, then the ACP of those Highly Compen-
sated Employees who also participate in a CODA will be reduced (beginning
with such Highly Compensated Employee whose ACP is the highest) so that
the limit is not exceeded. The amount by which each Highly Compensated
Employee's Contribution Percentage Amounts is reduced shall be treated as
an Excess Aggregate Contribution. The ADP and ACP of the Highly Com-
pensated Employees are determined after any corrections required to meet the
ADP and ACP tests. Multiple use does not occur if both the ADP and ACP
Of the Highly Compensated Employees does not exceed 1.25 multiplied by the
ADP and ACP of the Non -highly Compensated Employees.
(2) For purposes of this Section, the Contribution Percentage for any Participant
who is a Highly Compensated Employee and who is eligible to have Contribu-
tion Percentage Amounts allocated to his/her account under two (2) or more
plans described in section 401(a) of the Code, or arrangements described in
section 401(k) of the Code that are maintained by the Employer, shall be
determined as if the total of such Contribution Percentage Amounts was made
under each plan. If a Highly Compensated Employee participates in two (2)
or more cash or deferred arrangements that have different plan years, all cash
or defected arrangements ending with or within the same calendar year shall
be treated as a single arrangement. Notwithstanding the foregoing,
certain
plansshall be treated as separate if mandatorily disaggtega
tions under section 401(m) of the Code.
(3) In the event that this Plan satisfies the requirements of sections 401(m),
401(a)(4) or410(b) of the Code only if aggregated with o ero om such sec-
tions or if one (1) or more other plans satisfy the requirements
of the Code only if aggregated with this Plan, then this Section shall be
applied by determining the Contribution Percentage of Employees as if all
such plans were a single plan. For plan years beginning after December 31,
1989, plans may be aggregated in order to satisfy section 401(m) of the Code
only if they have the same plan year.
(4) For purposes of determining the Contribution Percentage of a Participant who
is a five percent (5%) owner or one (1) of the ten (10) most highly paid Highly
Compensated Employees, the Contribution Percentage Amounts a
Earn-
ings; of such Participant shall include the Contribution Percentage and
Earnings for the Plan Year of family members (as defined in see44l
of the Code). Family members, with respect to Highly Compensated
Employ-
ees, shall be disregarded as separate Employees in determining the Contribu-
tion percentage both for Participants who are Non -highly Compensated Em-
ployees and for Participants who are Highly Compensated Employees. 12/23/94
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2C:11
EXHIBIT 2C (continued)
the amount determined under (1) multiplied by the number of whole calendar
months between the end of the Plan Year and the date of distribution, counting the
month of distribution if distribution occurs after the fifteenth 05th) of such month.
(c) Forfeiture or Distribution of Excess Aggregate Contributions. Excess Aggregate
Contributions shall be forfeited, if forfeitable, or distributed on a pro -rasa basis from
the Participant's Employee Contribution Account or Employer Contribution Ac-
count (if Employer Contributions are Matching Contributions). Forfeitures of Ex-
cess Aggregate Contributions will be applied to reduce Employer Contributions.
5.05 Definitions. For the purposes of this Article, the following definitions shall apply:
(a) Aggregate Limit. The sum of W 125 percent of the greater of the ADP of the
Non -highly Compensated Employees under the CODA for the Plan Year or the
ACP of Non -highly Compensated Employees under the Plan subject to Code sec-
tion 401(m) for the Plan Year beginning with or within the Plan Year of the CODA
and 60 the lesser of 20D% or two (2) plus the lesser of such ADP or ACP. "Lesser"
is substituted for "greater" in W, above, and "greater" is substituted for "lesser" after
"rwo plus the " in (ii) if it would result in a larger Aggregate Limit.
(b) Average Contribution Percentage. The average of the Contribution Percentages of
the Eligible Participants in a group.
(c) CODA. A cash or deferred arrangement pursuant to section 401(k) of the Code.
(d) Contribution Percentage. The ratio (expressed as a percentage) of the Participant's
Contribution Percentage Amounts to the Participant's Earnings for the Plan Year
(whether or not the Employee was a Participant for the entire Plan Year).
(e) Contribution Percentage Amounts. The sum of the Employee Contributions and
Matching Contributions trade under the Plan on behalf of the Participant for the
Plan Year. Such Contribution Percentage Amounts shall not include Matching
Contributions that are forfeited either to correct Excess Aggregate Contributions
or because the contributions to which they relate are Excess Deferrals, Excess Con-
tributions, or Excess Aggregate Contributions.
(f) Eligible Participant. Any Employee who is eligible to make an Employee Contribu-
tion or to receive a Matching Contribution (including forfeitures). If an Employee
Contribution is required as a condition of participation in the Plan, any Employee
who would be a Participant in the Plan if such Employee trade such a contribution
shall be treated as an Eligible Participant on behalf of whom no Employee Contri-
butions are trade.
(g) Employee Contribution. Any contribution trade to the Plan by or on behalf of a
Participant that is included in the Participant's gross income in the year in which
trade and that is maintained under a separate account to which earnings and losses
are allocated.
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EXHIBIT 2C (continued)
(d) If, pursuant to Subsection (c) or as a result of the allocation of forfeitures, there is an
Excess Amount, the excess will be disposed of as follows:
(1) Any Voluntary Participant Contributions, to the extent they would reduce
the Excess Amount, will be returned to the Participant;
(2) If after the application of paragraph (1) an Excess Amount still exists, and the
Participant is covered by the Plan at the end of the Limitation Year, the Ex-
cess Amount in the Participant's Account will be used to reduce Employer
Contributions (including any allocation of forfeitures) for such Participant in
the next Limitation Year, and each succeeding Limitation Year if necessary;
(3) If after the application of paragraph (1) an Excess Amount still exists, and the
Participant is not covered by the Plan at the end of the Limitation Year, the
Excess Amount will be held unallocated in a suspense account. The suspense
account will be applied to reduce future Employer Contributions (including
allocation of any forfeitures) for all remaining Participants in the next Limita-
tion Year, and each succeeding Limitation Year if necessary;
(4) If a suspense account is in existence at any time during a particular Limitation
Year, all amounts in the suspense account must be allocated and reallocated to
Participants' accounts before any Employer or any Employee contributions
may be made to the Plan for that Limitation Year. Excess Amounts in a sus-
pense account may not be distributed to Participants or former Participants.
6.02 Participants in More than One Plan.
(a) This Section applies if, in addition to this Plan, the Participant is covered under
another qualified Regional Prototype defined contribution Plan maintained by the
Employer, or a welfare benefit fund, as defined in section 419(e) of the Code, main-
tained by the Employer, or an individual medical account, as defined by section
415(t)(2) of the Code, maintained by the Employer, which provides an Annual
Addition, during any Limitation Year. The Annual Additions which may be cred-
ited to a Participant's Account under this Plan for any such Limitation Year will not
exceed the Maximum Permissible Amount reduced by the Annual Additions cred-
ited to a Participant's Account under the other plans and welfare benefit funds for
the same Limitation Year. If the Annual Additions with respect to the Participant
under other defined contribution plans and welfare benefit finds maintained by the
Employer are less than the Maximum Permissible Amount and the Employer con-
tribution that would otherwise be contributed or allocated to the Participant's Ac-
count under this Plan would cause the Annual Additions for the Limitation Year to
exceed this limitation, the amount contributed or allocated will be reduced so that
the Annual Additions under -all such plans and funds for the Limitation Year will
equal the Maximum Permissible Amount. If the Annual Additions with respect to
the Participant under such other defined contribution plans and welfare benefit
funds in the aggregate are equal to or greater than the Maximum Permissible Amount,
no amount will be contributed or allocated to the Participant's Account under this
Plan for the Limitation Year.
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EXHIBIT 2C (continued)
6.05 Definitions. For the purposes of this Article, the following definitions shall apply:
(a) Annual Additions: The sum of the following amounts credited to a Participant's
account for the Limitation Year:
(1) Employer Contributions;
(2) forfeitures;
(3) Employee contributions; and
(4) Allocations under a simplified employee pension.
Amounts allocated, after March 31, 1984, to an individual medical account'
ry plan
defined in section 415(1)(2) of the Code, which is part of a pens
ion or maintained by the Employe, are treated as Annual Additions to a defined contribu-
tion plan. Also, amounts derived from contributions paid or accrued after Decem-
ber 31, 1985, in taxable years ending after such date, which are
account tr butable t
post -retirement medical benefits allocated to the separate
Em-
ployee, as defined in section 419A(d)(3) of the Code, under a welfare benefit fund,
as defined in section 419(e) of the Code, maintained by the Employer, are created as
Annual Additions to a defined contribution plan.
For this purpose. any Excess mount pContributions will be cons deredlied under Sections 61 W or OAnnual
the Limitation Year to reducea Employer
Additions for such Limitation Year.
(b) Compensation: A Participant's wages, salaries, and fees for professional services
cash)
and other amounts received (without regard to whether an amount is Paih thecash)
for personal services actually rendered in the course of employment
Em-
ployer maintaining the Plan to the extent that the amounid ts includible
income (including, but not percentage
to, f �fiu. commissions n� issions on insurance premi-
forservices on the basis of a pert allowances
ums, tips, bonuses, fringe benefits, and reimbursements or other exxpention s • allowances
, in-
cluding s
under a nonaceountable plan (as described in and excluding the following:
earned income of a self-employed
(1) Employe Contributions to a plan of deferred compensation which are not
includible in the Employees gross income for the taxable year in which co tr o
uted, or Employer Contributions under a simplified employee pens P
the extent such contributions are deductible by the Employee, or any distribu-
tions from a plan of deferred compensation;
Amounts realized from the exercise of a non•qualified stock option, or when
(2) by the Employee
restricted stock (or property) dferable or is no longer subject toa substantial risk of forfeiture;a freely trans-
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EXHIBIT 2C (continued)
(e) Defined Contribution Fraction: A fraction, the numerator of which is the sum of
the Annual Additions to the Participant's account under all the defined contribu-
tion plans (whether or nor terminated) maintained by the Employer for the current
and all prior Limitation Years (including the Annual Additions attributable to the
Participant's nondeductible Employee contributions to all defined benefit plans,
whether or not terminated, maintained by the Employer, and the Annual Addi-
tions attributable to all welfare benefit funds, as defined in section 419(e) of the
Code, and individual medical accounts as defined in section 4150)(2) of the Code,
maintained by the Employer), and the denominator of which is the sum of the
maximum aggregate amounts for the current and all prior Limitation. Years of ser-
vice with the Employer (regardless of whether a defined contribution plan was main-
tained by the Employer). The maximum aggregate amount in any Limitation Year
is the lesser of 125 percent of the dollar limitation in effect under sections 415 (b)
and (d) of the Code in effect under section 415(c)(1)(A) of the Code, or thirty-five
percent (35%) of the Participant's Compensation for such year.
If the Employee was a Participant as of the fast day of the first Limitation Year
beginning after December 31,1986, in one (1) or more defined contribution plans
maintained by the Employer which were in existence on May 6,1986, the numera-
tor of this fraction will be adjusted if the sum of this fraction and the Defined Ben-
efit Fraction would otherwise exceed 1.0 under the terms of this Plan. Under the
adjustment, an amount equal to the product of (1) the excess of the sum of the
fractions over 1.0 multiplied by (2) the denominator of this fraction, will be perma-
nently subtracted from the numerator of this fraction. The adjustment is calculated
using the fractions as they would be computed as of the end of the last Limitation
Year beginning before January 1, 1987, and disregarding any changes in the terms
and conditions of the plan made after May 5, 1986, but using the section 415 of
the Code limitation applicable to the first Limitation Year beginning on or after
January 1, 1987.
The Annual Addition for any Limitation Year beginning before January 1, 1987,
shall not be recomputed to treat all Employee contributions as Annual Additions.
(f) Employer. The Employer that adopts this Plan, and all members of a controlled
group of corporations (as defined in section 414(b) of the Code as modified by
section 415(h) of the Code), all commonly controlled trades or businesses (as de-
fined in section 414(c) of the Code as modified by section 415(h) of the Code) or
affiliated service groups (as defined in section 414(m) of the Code) of which the
adopting Employer is a pan, and any other entity required to be aggregated with the
Employer pursuant to regulations under section 414(o) of the Code.
(g) Excess Amount: The excess of the Participant's Annual Additions for the Limita-
tion Year over the Maximum Permissible Amount.
(h) Highest Average Compensation: The average Compensation for the three (3) con-
secutive years of service with the Employer that produce the highest average. A
year of service with the Employer is the twelve (12) consecutive month period de-
fined as the Limitation Year in the Adoption Agreement.
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EXHIBIT 2C (continued)
vll. TRUST AND INVESTMENT OF ACCOUNTS
7.01 Trust. A Trust is hereby created to hold all of the assets of the Plan for the exclusive
benefit of Participants and Beneficiaries, except that expenses and taxes may be paid
from the Trust as provided in Section 7.03. The trustee shall be the Employer or such
other person which agrees to act in that capacity hereunder.
7.02 investment Powers. The trustee or the Plan Administrator, acting as agent for the trustee,
shall have the powers listed in this Section with respect to investment of Trust assets,
except to the extent that the investment of Test assets is controlled by Participants,
pursuant to Section 14.03.
(a) To invest and reinvest the Trust without distinction between principal and income
in any form of tangible or intangible property, real, personal, or mixed, and wher-
ever situated, including, but not by way of limitation, common or preferred stocks,
shares of regulated investment companies and other mutual funds, bonds, loans,
notes, debentures, mortgages, certificates of deposit, interest, or participation, equip -
meet taut certificates, commercial paper including but not limited to participation
in pooled commercial paper accounts, contracts with insurance companies includ-
ing but not limited to insurance, individual or group annuity, deposit administra-
tion, and guaranteed interest contracts, deposits at reasonable rates of interest at
banking institutions including but not limited to savings accounts and certificates
Of deposit, and other forms of securities or investments of any kind, class, or charac-
ter whatsoever and representing interests in any form of enterprise, wherever it may
be located, organized or operated within or without the United States of America,
whether such investments are income producing or not, without being limited in
any respect by statute or court rule or decision of any jurisdiction now or hereafter
in force purporting to limit or otherwise affect such investments. Assets of the
rust
may be invested in securities or new ventures that involve a higher degree of
risk
than investments that have demonstrated their investment performance over an
extended period of time.
(b) To invest and reinvest all or any part of the assets of the Taut in any common,
collective or commingled trust fund that is maintained by a bank or other institu-
tion and that is available to Employee plans qualified under section 401 of the Code,
or any successor provisions thereto, and during the period of time that an invest-
ment through any such medium shall exist, to the extent of participation of the
Plan, the declaration of trust of such common, collective, or commingled trust fund
shall constitute a part of this Plan.
(c) To invest and reinvest all or any part of the assets of the Trust in any group annuity,
deposit administration or guaranteed interest contract issued by an insurance com-
pany or other financial institution on a commingled or collective basis with the
assets of any other plan or trust qualified under section 401(3) of the Code or any
other plan described in section 401(a)(24) of the Code, and such contract may be
held i issued in the appoint, the gent aAdministrator, t � Employer- During the
the Plan
Administrator may appo' gent
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EXHIBIT 2C (continued)
(k) To deposit any property held in the Trust with anprotective, cand organization, or
pay and agree
similar committee, and to delegate discretionary power
to pay part of its expenses and compensation and any assessments levied with re-
spect to any such property so deposited.
(1) To hold, to authorize the holding of, and to register any investment
anytto
therustin
the name of the Plan, the Employer, or any nominee or agent
forego-
ing, including the Plan Administrator, or in bearer form, to deposit when so or arrange for ffor
the deposit of securities in a qualified central depository even though,
posited, such securities may be merged and held in bulk in the name of the nomi-
nee of such depository with other securities deposited therein by any other person,
and to organize corporations or trusts under the laws of any jurisdiction for the
purpose of acquiring or holding title to any property for the Trust, all with or with-
out the addition of words or other action to indicate that property is held in a
fiduciary or representative capacity but the books and records of the Plan shall at all
times show that all such investments are part of the Trust.
(m) Upon such terms as may be deemed advisable by the Employer or the Plan Admin-
istrator, as the case may be. for the protection of the interests of the Plan or for the
preservation of the value of an investment, to exercise and enforce by suit for legal
or equitable remedies or by other action, or to waive any right or claim on behalf of
the Plan or any default in any obligation owing to the Plan, to renew, extend the
time for payment of, agree to a reduction in the rate of interest on, or agree
any
other modification or change in the terns of any obligation owing to the Plan, to
settle, compromise, adjust, or submit to arbitration any claim or right in favor of or
against the Plan, to exercise and enforce any and all rights of foreclosure, bid for
property in foreclosure, and take a deed in lieu of foreclosure with or without paying
consideration therefor, to commence or defend suits or other legal proceedings
ever any interest of the Plan requires it, and to represent the Plan in all suits or legal
proceedings in any court of law or equity or before any body or tribunal.
(n) To employ suitable consultants, depositories, agents, and legal counsel on behalf of
the Plan.
(o) To make, execute, acknowledge, and deliver any and all deeds, leases, mortgages,
conveyances, contracts, waivers, releases, or other instruments in writing necessary
or proper for the accomplishment of any of the foregoing powers.
(p) To open and maintain any bank account or accounts in the name of the Plan, the
Employer. or any nominee or agent of the foregoing, including the Plan Adminis-
trator, in any bank or banks.
(q) To do any and all other acts that may be deemed necessary to carry out any of the
powers set forth herein.
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EXHIBIT 2C (continued)
8.02 Crediting Periods of Service. Except as provided in Section 8.03, all of an Employee's
Periods of Service with the Employer are counted to determine the nonforfeitable per-
centage in the Employee's Account balance derived from Employer Contributions. If the
Employer maintains the plan of a predecessor employer, service with such employer will
be created as service for the Employer.
For purposes of determining years of service and Breaks in Service for purposes of comput-
ing a Participant's nonforfeitable right to the Account balance derived from Employer
Contributions, the twelve (12) consecutive month period will on 12) the
ate the
Employee first performs an hour of service and each subsea
month period will commence on the anniversary of such date.
8.03 Service After Break in Service. In the case of a Participant who has a Break in Service of
at least five (5) years, all Periods of Service after such Breaks in Service will be disre-
garded for the purpose of determining the nonforfeitable percentage of the
Employer -derived Account balance that accrued off resuc the k, but both pre- eak
and post -Break service will count for the purposes S
Ac-
count balance that accrues after such Break. Both Accounts will share in the earnings
and losses of the fund.
In the case of a Participant who does not have a Break in Service of at least five (5) years,
both the pre -Break and post -Break service will count in vesting both the pre -Break and
post -Break Employer -derived Account balance.
In the case of a Participant who does not have any nonforfeitable right to the Account
balance derived from Employer Contributions, years of service before a period of con-
secutive one (1) year Breaks in Service will not be taken into account in computing
eligibility service if the number of consecutive one (1) year Breaks in Service in such
period equals or exceeds the greater of five (5) or the aggregate number of years of service.
Such aggregate number of years of service will not include any years of service disregarded
under the preceding sentence by reason of prior Breaks in Service.
If a Participant's years of service are disregarded pursuant to the preceding paragraph,
such Participant will be treated as a new Employee for eligibility purposes. if a Participant's
years of service may not be disregarded pursuant to the preceding paragraph, such Partici-
pant shall continue to participate in the Plan, or, if terminated, shall participate immedi-
ately upon reemployment.
8.04 Vesting Upon Normal Retirement Age. Notwithstanding Section 8.01 of the Plan, a
Participant shall have a Nonforfeitable Interest in his/her entire Employer Contribution
Account, to the extent that the balance of such Account has not previously been for-
feited pursuant to Section 8.06 of the Plan, if he/she is employed on or after his/her
Normal Retirement Age.
8.05 Vesting Upon Death or Disability. Notwithstanding Section 8.01 of the Plan, in the
event of Disability or death, a Participant or his/her Beneficiary shall have a Nonforfeitable
interest in his/her entire Employer Contribution Account, to the extent that the balance
of such Account has not previously been forfeited pursuant to Section 8.06 MP e' 3/94
® 001-94
EXHIBIT 2C (continued)
Claim of Benefits. A Participant, Employee or Beneficiary shall notify the Plan Admin-
istrator in writing of a claim of benefits under the Plan. The Plan Administrator shall
take such steps as may be necessary to facilitate the payment of such benefits to the
Participant, Employee or Beneficiary.
Appeal Procedure. If any claim for benefits is denied by the Plan Administrator, the Plan
Administrator shall notify the claimant in writing of such denial, setting forth the spe-
cific reasons and citing reference to specific provisions of the Plan upon which the denial
is based. An appeal period of sixty (60) days after receipt of the notification of denial
shall be granted, and said notification shall advise the claimant of the appeal procedure.
The claimant shall file the appeal with the Plan Administrator, whose decision shall be
final, to the extent provided by Section 16.07.
Normal and Elective Commencement of Benefits. Unless the Participant elects other-
wise, distribution of benefits will begin no later than the sixtieth (60th) day after the
latest of the close of the Plan Year in which:
The Participant attains age sixty-five (65) (or Normal Retirement Age, if earlier);
The Participant terminates service with the Employer, or
Occurs the tenth (10th) anniversary of the yearr in which the Participant com-
menced participation in the Plan.
Notwithstanding the foregoing, the failure of a Participant and the Participant's Spouse
to consent to a distribution while a benefit is immediately distributable, within the mean-
ing of section 10.02 of the Plan, shall be deemed to be an election to defer commence-
ment of payment of any benefit sufficient to satisfy this section.
A Participant who retires, becomes Disabled or separates from service for any other rea-
son may elect by written notice to the Plan Administrator to have the distribution of
benefits commence on a date earlier or later than that described in this Section 10.01,
provided that such earlier distribution complies with Section 10.02. Such election must
be made in writing during the ninety (90) day period ending on the date as of which
benefit payments are to commence. A Participant's election shall be revocable and may
be amended by the Participant.
Restrictions on Immediate Distributions. Notwithstanding anything to the contrary in
Section 10.01 of the Plan, if the value of a Participant's vested Account balance exceeds
(or at any time of any prior distribution exceeded) $3,500, and the Account balance is
immediately distributable, the Participant and the Participant's Spouse (or where either
has died, the survivor) must consent to any distribution of such Account balance. The
2C:27
EXHIBIT 2C (continued)
10.03 Transfer to Another Plan.
(a) If a Participant terminates employment and becomes entitled to receive a distribu-
tion under the Plan and becomes employed with another employer, the Plan Ad-
ministrator shall, at the written election of such Participant, transfer all of such
Participant's Nonforfeitable Interest in his/her Account, to the maximum extent
permitted under the Code, to the new employer's plan, provided that the new em-
ployer certifies to the Plan Administrator that its plan provides for the acceptance
of such a transfer. For purposes of this Plan, any such transfer shall not be consid-
ered a distribution to the Participant subject to spousal consent as described in Sec-
tion 10.02 and Article X1II.
(b) if a Participant becomes.eligible to participate in another plan maintained by the
Employer that is qualified under section 401(a) of the Code, the Plan Administra-
tor shall, at the written election of such Participant, transfer all or part of such
Participant's Account to such plan, provided the plan administrator for such plan
terrifies to the Plan Administrator that its plan provides for the acceptance of such
a transfer. For purposes of this Plan, any such transfer shall not be considered a
distribution to the Participant subject to spousal consent as described in Section
10.02 and Article XIII.
(c) This Subsection applies to distributions made on or after January 1,1993. Notwith-
standing any provision of the Plan to the contrary that would otherwise limit a
Distributee's election under this Section, a Distributee may elect, at the time and in
the manner prescribed by the Plan Administrator, to have any portion of an Eligible
Rollover Distribution paid directly to an Eligible Retirement Plan specified by the
Distributee in a Direct Rollover. For purposes of this Plan, any such Eligible Rollover
Distribution shall be considered a distribution to the Participant subject to spousal
consent as described in Section 10.02 and Article XIII.
(d) Definitions. For the purposes of Subsection (c), the following definitions shall apply:
(1) Eligible Rollover Distribution. Any distribution of all or any portion of the
balance to the credit of the Distributee, except that an Eligible Rollover Dis-
tribution does not include: any distribution that is one of a series of substantially
equal periodic payments (not less frequently than annually) made for the life
or life expectancy of the Distributee or the joint lives or joint life expectancies
of the Distributee and the Distributee's designated beneficiary, or for a speci-
fied period of ten years or more; any distribution to the extent such distribu-
tion is required under section 401(a)(9) of the Code; the portion of any distri-
bution that is not includible in gross income; and any other distribution(s)
that is reasonably expected to total less than $200 during a year.
(2) Eligible Retirement Plan. An individual retirement account described in sec-
tion 408(a) of the Code, an individual retirement annuity described in sec-
tion 408(b) of the Code, an annuity plan described in section 403(a) of the
Code, or a qualified trust described in section 401(a) of the Code, that accepts
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EXHIBIT 2C (continued)
X1. DISTRIBUTION REQUIREMENTS
11.01 General Rules.
(a) Subject to the provisions of Article XIII, the requirements of this Article shall ap-
ply to any distribution of a Participant's interest and will take precedence over any
inconsistent provisions of this Plan. Unless otherwise specified, the provisions of
this Article apply to calendar years beginning after December 31,1984.
(b) All distributions required under this Article shall be determined and made in accor-
dance with the proposed regulations under section 401(a)(9) of the Code, includ-
ing the minimmun distribution incidental benefit requitement of section 1.401(a)(9)-2
of the proposed regulations.
11.02 Required Beginning Date. The entire Nonforfeitable Interest of a Participant must be dis-
tributed or begin to be distributed no later than the Participant's Required Beginning Date.
11.03 Limits on Distribution Periods. As of the first Distribution Calendar Year, distributions,
if not made in a single -sum, may only be made over one of the following periods (or a
combination thereof):
(a) The life of the Participant,
(b) The life of the Participant and a Designated Beneficiary,
(c) A period certain not extending beyond the Life Expectancy of the Participant, or
(d) A period certain not extending beyond the Joint and Last Survivor Expectancy of
the Participant and a Designated Beneficiary.
11.04 Determination of Amount to Be Distributed Each Year. If the Participant's Nonforfeitable
Interest is to be distributed in other than a single sum, the following minimum distribu-
tion rules shall apply on or after the Required Beginning Date:
(a) Individual Account.
(1) If a Participant's Benefit is to be distributed over (i) a period not extending
beyond the Life Expectancy of the Participant or the Joint Life and Last Sur-
vivor Expectancy of the Participant and the Participant's Designated Benefi-
ciary, or (ii) a period not extending beyond the Life Expectancy of the Desig-
nated Beneficiary, the amount required to be distributed for each calendar
year, beginning with distributions for the first Distribution Calendar Year, must
at least equal the quotient obtained by dividing the Participant's Benefit by
the Applicable Life Expectancy.
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EXHIBIT 2C (continued)
(2) If the Designated Beneficiary is the Participant's surviving spouse, the date
distributions are required to begin in accordance with Subsection (1) shall
not be earlier than the later of (i) December 31 of the calendar year immedi-
ately following the calendar year in which the Participant died, and 60 De-
cember 31 of the calendar year in which the Participant would have attained
age seventy and one-half (70-1/2)•
If the Participant has not made an election pursuant to this Subsection by the time
of his/her death, the Participant's Designated Beneficiary must elect the method of
distribution no later than the earlier of (i) December 31 of the calendar year in
which distributions would be required to begin under this Section, or 60 December
31 of the calendar year which contains the fifth (5th) anniversary of the date of
death of the Participant. if the Participant has no Designated Beneficiary, or if the
Designated Beneficiary does not elect a method of distribution, distribution of the
Participant's entire interest must be completed by December 31 of the calendar year
containing the fifth Oth) anniversary of the Participant's death.
(c) For purposes of Subsection (b), if the surviving spouse dies after the Participant, but
before payments to such spouse begin, the provisions of Subsection (b), with the
exception of paragraph (2) therein, shall be applied as if the surviving spouse were
the Participant.
(d) For purposes of this Section, any amount paid to a child of the Participant will be
treated as if it had been paid to the surviving spouse if the amount becomes payable
to the surviving spouse when the child reaches the age of majority.
(e) For the purposes of this Section, distribution of a Participant's interest is considered
to begin on the Participant's Required Beginning Date (or, if Subsection (c) is ap-
plicable, the date distribution is required to begin to the surviving spouse pursuant
to Subsection (b)). If distribution in the form of an annuity irrevocably commences
to the participant before the Required Beginning Date, the date distribution is con-
sidered to begin is the date distribution actually commences.
11.06 Definitions. For the purposes of this Section, the following definitions shall apply:
(a) Applicable Life Expectancy. The Lik Expectancy (or Joint and Last Survivor Ex-
pectancy) calculated using the attained age of the Participant (or Designated Ben-
eficiary) as of the Participant's (or Designated Benefiiciary's) birthday in the
applicable calendar year reduced by one (1) for each calendar year which has elapsed
since the date Life Expectancy was, first calculated. If Life Expectancy is being
recalculated, the Applicable Life Expectancy shall be the Life Expectancy as so
recalculated. The applicable calendar year shall be the first Distribution Calendar
Year, and if Life Expectancy is being recalculated such succeeding calendar year.
(b) Designated Beneficiary. The individual who is designated as the Beneficiary under
the Plan in accordance with section 401(a)(9) of the Code and the proposed regu-
lations thereunder.
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EXHIBIT 2C (continued)
(b) 5-Percent Owners. The Requirebeginning
nnnn g Date te of a ember Participant 1who
is a 5-Percent Owner during any y begi g
is the first day of April following the later of:
(i) The calendar year in which the Participant attains age seventy and
one-half (70-1/2), or
r year with or within
ends the
(u) The Plan Yearn which the Paier of the rticipant pant becomes a 5-Percent�Owner, or
the calendar year in which the Participant retires.
(3) The Required Beginning Date is April 1, 1990 for a Participant who is not a
5-Percent Owner who attains age seventy and one-half (70-1/2) during 1988
and who has not retired as of January 1,1989.
(4) 5-Percent Owner. A Participant is treated as a 5-Percent Owner for purposes
of this Section if such Participant is a 5-Percent Owner as defined in section
416(i) of the Code (determined in accordance with section 416 of the Code
but without regard to whether the Plan is top-heavy) at any time during the
Plan Year ending with or within the calendar year in which such owner at -
twins age sixty -sac and one-half (66-1/2) or any subsequent Plan Year.
(5) Once distributions have begun to a 5-Percent Owner under this Section, they
must continue to be distributed, even if the Participant ceases to be a 5-Per-
cent Owner in a subsequent year.
11.07 Transitional Rule.
(a) Notwithstanding the other requirements of this Article and subject toe require-
ments of Article X111, distribution on behalf of any Employee, including a5-Per-
cent
Owner, may be made in accordance with all of the following requirements
(regardless of when such distribution commences):
ualified such
(1) The distribution by the Plan is one which would not have Plan under section 401(a)(9) of the Code as in effect prior to a4ttendment by
the Deficit Reduction Act of 1984.
(2) The distribution is in accordance with a method of distribution designated by
the Employee whose interest in the Plan is being distributed or, if the Em-
ployee is deceased, by a Beneficiary of such Employee-
(3) Such designation was in writing, was signed by the Employee or the Benefi-
ciary, and was made before January 1,1984.
(4) The Employee had accrued a benefit under the Plan as of December 31,1983.
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EXHIBIT 2C (continued)
(c) Period Certain. Approximately equal monthly, quarterly, semi-annual, or annual
payments, calculated to continue for a period certain chosen by the Participant.
(d) Other. Any other sequence of payments requested by the Participant.
ent option must be made in writing
12.03 Election
1 thirty (30) and ninety (go)
rtty de. A Participant's ldays beforeection of athe payment of benefits is to commence.
12.04 Death Benefits. Subject to Articles XI and XIII,
(a) In the case of a Participant who dies before he/she has begun receiving benefit
payments, the Participant's entire Nonforfeitable Interest shall then be payable to
his/her Beneficiary within ninety (90) days of the Participant's death. A Benefi-
ciary who is entitled to receive benefits under this Section may elect to have ben-
efits commence at a later date, subject to the provisions of Section 11.05. The
Beneficiary may elect to receive the death benefit in any of the forms available to
the Participant under Section 12.02. If the Beneficiary is the commences, then this
Surviv-
ing Spouse, and such Surviving Spouse dies before payment as though such Section shall apply to the beneficiary of the Surviving Spouse
Sur-
viving Spouse were the Participant.
(b) Should the Participant die after he/she has begun receiving benefit payments, the
Beneficiary shall receive the remaining benefits, if any, that are payable, under the
payment schedule elected by the Participant. Notwithstanding the foregoing, the
Beneficiary may elect to accelerate payments of the remaining balances, including
but not limited to, a lump sum distribution.
XIII. SPOUSAL BENEFIT REQUIREMENTS
13.01 ApplicatioThe provisions of this Article shall take precedence over any conflicting
n.
provision in this plan. The provisions of this Article shall apply to any Participant who
is credited with any Period of Service with the Employer on or after August 23,1984, and
such other Participants as provided in Section 13.05.
13.02 Qualified Joint and Survivor Annuity. Unless an optional form of benefit is selected .
pursuant to a Qualified Election within the ninety (90) day Prod ending on the Annu-
ity Starting Date, a married Participant's Vested Account Balance will be paid in the form
of a Qualified Joint and Survivor Annuity and an unmarried Participant's Vested Ac-
count Balance will be paid in the form of a Straight Life Annuity. The Participant may
elect to have such annuity distributed upon the attainment of the Earliest Retirement
Age under the Plan.
13.03 Qualified Pteretitement Survivor Annuity. If a Participant dies before the Annuity Starting
Date, then fifty percent (50%) of the Participant's Vested Account Balance shall
ll
plied toward the purchase of an annuity for the life of the Surviving Sparse:
remain-
ing portion shall be paid to such Beneficiaries (which may include such Spouse) desig-
nated by the Participant. Notwithstanding the foregoing, the Participant may waive the
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2C:37
EXHIBIT 2C (continued)
(c) Notwithstanding the other requirements of this Section, the respective notices pre-
scribed by this Section need not be given to a Participant if (1) the Plan "fully
subsidizes" the costs of a Qualified Joint and Survivor Annuity or qualified prere-
tirement survivor annuity, and (2) the Plan does not allow the Participant to waive
the Qualified Joint and Survivor Annuity or qualified preretirement survivor annu-
ity and does not allow a married Participant to designate a non -Spouse Beneficiary.
For purposes of this Subsection (c), a plan fully subsidizes the costs of a benefit if no
increase in cost or decrease in benefits to the Participant may result from the
Participant's failure to elect another benefit.
13.05 Transitional Rules.
(a) Any living Participant not receiving benefits on August 23, 1984, who would oth-
erwise not receive the benefits prescribed by the previous Sections of this Article
must be given the opportunity to elect to have the prior Sections of this Article
apply if such Participant is credited with at least one (1) hour of service under this
Plan or a predecessor plan in a Plan Year beginning on or after January 1,1976, and
such Participant had at least ten (10) years of vesting service when he/she separated
from service.
(b) Any living Participant not receiving benefits on August 23,1984, who was credited
with at least one (1) hour of service under this Plan or a predecessor plan on or after
September 2, 1974, and who is not otherwise credited with any service to have
a Plan
Year beginning on or after January 1,1976, must be giventheoppoity
his/her benefits paid in accordance with Subsection W.
(c) The respective opportunities to elect (as described in Subsections (a) and (b) above)
must be afforded to the appropriate Participants during the period commencing on
August 23, 1984, and ending on the date benefits would otherwise commence to
said Participants.
(d) Any Participant who has elected pursuant to Subsection (b) and any Participant
who does not elect under Subsection (a) or who meets the requirements of Subsec-
tion (a) except that such Participant does not have at least ter (10) years of vesting
service when he/she separates from service, shall have his/her benefits distributed in
accordance with all of the following requirements if benefits would have been pay-
able in the form of a life annuity:
(1) Automatic joint and survivor annuity. if benefits in the form of a life annuity
become payable to a married Participant who:
(a) Begins to receive payments under the Plan on or after normal retirement
age; or
(b) Dies on or after normal retirement age while still working for the
Employer; or
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2C:39
EXHIBIT 2C (continued)
13.06 Definitions. For the purposes of this Section, the following definitions shall apply:
(a) Annuity Starting Date: The first day of the first period for which an amount is paid
as an annuity or any other form.
(b) Election Period: The period which begins on the first day of the Plan Year in which
the Participant attains age thirty-five (35) and ends on the date of the Participant's
death. If a Participant separates from service prior to the first day of the Plan Year in
which age thirty-five (35) is attained, with respect to the Account balance as of the
date of separation, the Election Period shall begin on the date of separation.
Pre -age thirty-five (35) waiver. A Participant who will not yet attain age thirty-five
(35) as of the end of any current Plan Year may make a special Qualified Election to
waive the qualified preretirement survivor annuity for the period beginning on the
date of such election and ending on the first day of the Plan Year in which the
Participant will attain age thirty-five (35). Such election shall not be valid unless
the Participant receives a written explanation of the qualified preretirement survi-
vor annuity in such terms as are comparable to the explanation required under Sec-
tion 13.04(a). Qualified preretirement survivor annuity coverage will be automati-
cally reinstated as of the first day of the Plan Year in which the Participant artains
age thirty-five (35). Any new waiver on or after such date shall be subject to the
full requirements of this Article.
(c) Earliest Retirement Age: The earliest date on which, under the Plan, the Partici-
pant could elect to receive retirement benefits.
(d) Qualified Election: A waiver of a Qualified Joint and Survivor Annuity or a quali-
fied preretirement survivor annuity- Any waiver of a Qualified Joint and Survivor
Annuity or a qualified preretirement survivor annuity shall not be effective unless:
(a) the Participant's Spouse consent in writing to the election; (b) the election
designates a specific Beneficiary, including any class of Beneficiaries or any contin-
gent Beneficiaries, which may not be changed without spousal consent (or the Spouse
expressly permit designations by the Participant without any further spouse
l con-
sent); (c) the Spouses consent acknowledges the effect of the election; and (d) the
Spouse's consent is witnessed by a Plan representative or notary public. Addition-
ally, a Participant's waiver of the Qualified joint and Survivor Annuity shall not be
effective unless the election designates a form of benefit payment which may not be
changed without spousal consent (or the Spouse expressly permits designations by
the Participant without any further Spousal consent). if it is established to the
satisfaction of a Plan representative that there is no Spouse or that the Spouse can-
not be located, a waiver will be deemed a Qualified Election.
Any consent by a Spouse obtained under this provision (or establishment that the
consent of a Spouse may not be obtained) shall be effective only with respect to
such Spouse. A consent that permit designations by the Participant without any
requirement of further consent by such Spouse must acknowledge that the Spouse
has the right to limit consent to a specific Beneficiary, and a specific form of benefit
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2C:41
EXHIBIT 2C (continued)
XIV. LOANS TO PARTICIPANTS
R
14.01 Availability of Loans to Participants.
(a) If the Employer has elected in the Adoption Agreement to make loans available to
Participants, a Participant may apply for a loan from the Plan subject to the limita-
tions and other provisions of this Article.
(b) The Employer shall establish written guidelines governing the granting of loans,
provided that such guidelines are approved by the Plan Administrator and are not
inconsistent with the provisions of this Article, and that loans are made available
to all Participants on a reasonably equivalent basis.
14.02 Terms and Conditions of Loans to Participants. Any loan by the Plan to a Participant
under Section 14.01 of the Plan shall satisfy the following requirements:
(a) Availability. Loans shall be made available to all Participants on a reasonably
equivalent basis.
(b) Nondiscrimination. Loans shall not be nude to Highly Compensated Employees in
an amount greater than the amount made available to other Employees.
(c) Interest Race. Loans must be adequately secured and bear a reasonable interest rate.
(d) Loan Limit. No Participant loan shall exceed the present value of the Participant's
Nonforfeitable Interest in his/her Account.
(e) Spousal Consent. A Participant must obtain the consent of his/ fpouss , as de-
fined under Section 13.06 if any, within the ninety (90) day period
the Account balance is used as security for the loan. Spousal consent shall be ob-
tained no earlier than the beginning of the ninety (90) day period that ends on the
date on which the loan is to be so secured. The consent must be in writing, must
acknowledge the effect of the loan, and must be witnessed by a Plan representative
or notary public. Such consent shall thereafter be binding with respect to the con-
senting Spouse or any subsequent Spouse with respect to that loan. A new consent
shall be required if the Account balance is used for renegotiation, extension, re-
newal, or other revision of the loan.
(f) Foreclosure. In the event of default, foreclosure on the note and attachment of
security will not occur until a distributable event occurs in the Plan.
(g) Reduction of Account. If a valid spousal consent has been obtained in accordance
with Subsection (e), then, notwithstanding any other provision of this Plan, the
portion of the Participant's vested Account balance used as a security interest held
by the Plan by reason of a loan outstanding to the Participant shall be taken into
account for purposes of determining the amount of the Account balance payable at
the time of death or distribution, but only if the reduction is used as repayment of
MPP 12/23/94
001-94
2C:43
EXHIBIT 2C (continued)
otherwise due may be suspended during an authorized leave of absence, if the prom-
issory note so provides, but not beyondhed le (within original su h permitted
rituted aer this s he
section (j), with a revised payment
end of such period of suspension.
W Prepayment. The Participant shall be permitted to repay the loan in whole or in
pan at any time prior to maturity, without penalty.
idenced by a promissory note
(1) Noce. The d delivered to thean shall be vEmployer,, and shall bear interest at
Partici-
pant a taa reasonable Tate
determined by the Employer.
(in) Security. The loan shall be secured by an assignment of that portion the Participant's
right, title and. interest in and to his/her Employer Contribution Account (to the
extent vested), Participant Contribution Account, and Portable Benefits Account
that is equal to fifty percent (50%) of the Participant's Account (to the extent vested).
(n) Assignment or Pledge. For the purposes of paragraphs (h) and W, assignment or
pledge of any portion of the Participant's interest in the Plan and a loan, pledge, or
assignment with respect to any insurance contract purchased under the Plan, will
be treated as a loan.
(o) Other Terms and Conditions. The Employer shall fix such other terms and condi-
tions of the loan as it deems necessary to comply with legal requirements, to main-
tain the qualification of the Plan and Trust under section 401(a) of the Code, or to
prevent the treatment of the loan for tax purposes as a distribution to the Partici-
pant. The Employer, in its discretion for any reason, may fix other terms and condi-
tions of the loan, not inconsistent with the provisions of this Article.
14.03 Participant Loan Accounts.
(a) Upon approval of a loan to a Participant by the Employer, an amount not in excess
of the loan shall be transferred from the Participant's other investment fud(s),
described in Section 7.05 of the Plan, to the Participant's Loan R �h as of to loathe
Accounting Date immediately preceding the agreed upon
date to be trade.
(b) The assets of a Participants Loan Account may be invested and reinvested only in
promissory notes received by the Plan from the Participant as consideration for a
loan permitted by Section 14.01 of the Plan or in cash. Uninvested cash balances
in a Participant's Loan Account shall not bear interest. No person who is otherwise
a fiduciary of the Plan shall be liable for any loss, or by reason of any breach, that
results from the Participant's exercise of such control.
MPP 12/23/94
® 001-94
EXHIBIT 2C (continued)
15.02 Amendment of Vesting Schedule. If the Plan's vesting schedule is amended, or the Plan
is amended in any way that directly or indirectly affects the computation of the Participant's
nonforfeitable percentage or if the Plan is deemed amended by an automatic change to or
from a top-heavy vesting schedule, each Participant may elect, within a reasonable pe-
riod after the adoption of the amendment or change, to have the nonforfeitable percent-
age computed under the Plan without regard to such amendment or change.
The period during which the election may be made shall commence with the date the
amendment is adopted or deemed to be trade and shall end on the latest of:
(a) Sixty (60) days after the amendment is adopted;
(b) Sixty (60) days after the amendment becomes effective; or
(c) Sixty (60) days after the Participant is issued written notice of the amendment by
the Employer or Plan Administrator.
15.03 Termination by Employer. The Employer reserves the right to terminate this Plan. How-
ever, in the event of such termination no part of the Taut shall be used or diverted to any
purpose other than for the exclusive benefit of the Participants or their Beneficiaries,
except as provided in this Section
Upon Plan termination or partial termination, all Account balances shall be valued at
their fair market value and the Participant's right to his/her Employer Contribution Ac-
count shall be one hundred percent (100%) vested and nonforfeitable. Such amount and
any other amounts held in the Participant's other Accounts shall be maintained for the
Participant until paid pursuant to the terms of the Plan.
Any amounts held in a suspense account, after all liabilities of the Plan to Participants
and Beneficiaries have been satisfied or provided for, shall be paid to the Employer in
accordance with the Code and regulations thereunder.
If the Employer's Plan fails to attain or retain qualification under section 401 of the Code,
such Plan will no longer participate in this Regional Prototype Plan and will be consid-
ered an individually designed Plan.
In the event that the Commissioner of Internal Revenue determines that the Plan is
not initially qualified under the Internal Revenue Code, any contribution made by
the Employer incident to that initial qualification must be returned to the Employer
within one year after the date the initial qualification is denied, but only if the appli-
cation for the qualification is made by the time prescribed by law for filing the
Employer's return for the year in which the Plan is adopted, or such later date as the
Secretary of the Treasury may prescribe.
15.04 Discontinuance of Contributions. A permanent discontinuance of contributions to the
Plan by the Employer, unless an amended and restated Plan is established, shall consti-
tute a Plan termination
® MPP 12/23/94
001-94
2C-47
EXHIBIT 2C (continued)
(e) To appoint and retain such agents, counsel, and accountants for the purpose of
properly administering the Plan;
(f) To distribute assets of the Trust to each Participant and Beneficiary in accordance
with Article X1 of the Plan;
(g) To pay expenses from the Trust pursuant to Section 7.03 of the Plan; and
(h) To do such other acts reasonably required to administer the Plan in accordance with
its provisions or as may be provided for or required by law.
16.03 Protection of the Employer. The Employer shall not be liable for the acts or omissions of
the Plan Administrator, but only to the extent that such acts or omissions do not result
from the Employer's failure to provide accurate or timely information as required or nec-
essary for proper administration of the Plan.
16.04 Protection of the Plan Administrator. The Plan Administrator may rely upon any
certificate, notice or direction purporting to have been signed on behalf of the Em-
ployer which the Plan Administrator believes to have been signed by a duly desig-
nated official of the Employer.
16.05 Resignation or Removal of Plan Administrator. The Plan Administrator may resign at
any time effective upon sixty (60) days prior written notice to the Employer. The Plan
Administrator may be removed by the Employer at any time upon sixty (60) days Prior
written notice to the Plan Administrator. Upon the resignation or removal of the Plan
Administrator, the Employer may appoint a successor Plan Administrator, failing such
appointment, the Employer shall assume the powers and duties of Plan Administrator.
Upon the resignation or removal of the Plan Administrator, any Trust assets invested by
or held in the name of the Plan Administrator shall be transferred to the trustee in cash or
property, at fait market value, except that the return of Trust assets invested in a contract
issued by an insurance company shall be governed by the terms of that contract.
16.06 No Termination Penalty. The Plan Administrator shall have no authority or discretion
to,impose any termination penalty upon its removal.
16.07 Decisions of the Plan Administrator. All constructions, determinations, and interpreta-
tions made by the Plan Administrator pursuant to Section 16.02(a) or (d) shall be final
and binding on all persons participating in the Plan, given deference in all courts of law
to the greatest extent allowed by applicable law, and shall not be overturned or set aside
by any court of law unless found to be arbitrary or capricious, or made in bad faith.
XVII. MISCELLANEOUS
17.01 Nonguarantee of Employment. Nothing contained in this Plan shall be construed as a
contract of employment between the Employer and any Employee, or as a right of an
Employee to be continued in the employment of the Employer, as a limitation of the right
of the Employer to discharge any of its Employees, with or without cause.
MPP 12/23/94
m001-94
2CA9
EXHIBIT 2C (continued)
17.07 Inability to Locate Payee. Anything to the contrary herein notwithstanding, if the Em-
ployer is unable, after reasonable effort, to locate any Participant or Beneficiary to whom
an amount is payable hereunder, such amount shall be forfeited and held in the Trust for
application against the next succeeding Employer Contribution or contributions required
to be made hereunder. Notwithstanding the foregoing, however, such amount shall be
reinstated, by means of an additional Employer contribution, if and when a claim for the
forfeited amount is subsequently made by the Participant or Beneficiary or if the Em-
ployer receives proof of death of such person, satisfactory to the Employer. To the extent
not inconsistent with applicable law, any benefits lost by reason of escheat under ap-
plicable state law shall be considered forfeited and shall not be reinstated.
17.06 Mergers, Consolidations, and Transfsets
er of As. The Plan shall not be merged into or
consolidated with any other plan, nor shall any of its assets or liabilities be transferred into
any such other plan, unless each Participant in the Plan would (if the Plan then termi-
nated) receive a benefit immediately after the merger, consolidation, or transfer that is
equal to or greater than the benefit he/she would have been entitled to receive immediately
before the merger, consolidation, or transfer (if the Plan had then terminated).
17.09 Employer Records. Records of the Employer as to an Employee's or Participant's Period of
Service, termination of service and the reason therefor, leaves of absence, reemploy-
ment, Earnings, and Compensation will be conclusive on all persons, unless determined
to be incorrect.
17.10 Controlled Groups and Affiliated Service Groups.
(a) Except as provided in Section 6.05(f), all Employees of all corporations which are
members of a controlled group of corporations (as defined in section 414(b) of the
Code) and all Employees of all trades or businesses (whether or not incorporated)
which are under common control (as defined in section 414(c) of the Code) will be
treated as employed by a single Employer.
(b) All Employees of all members of an affiliated service group (as defined in section
414(m) of the Code) will be treated as employed by a single Employer.
(c) All Employees of any entity required to be aggregated with the Employer pursuant
to section 414(o) of the Code and the regulations thereunder will be treated as
employees by a single Employer.
17.11 Gender and Number. The masculine pronoun, whenever used herein, shall include the
feminine pronoun, and the singular shall include the plural, except where the context
requires otherwise.
17.12 Leased Employees. Any leased employee deemed to be an employee of an employer as
provided in sections 414(n) or (o) under the Code, shall be treated as an Employee of the
employer or of any other employer required to be aggregated with such employer under
sections 414(b), (c), (m) or (o) of the Code; however, contributions or benefits provided
by the leasing organization which are attributable to services performed for the recipient
MPP 12/23/94
�i 001-94
2C:51
EXHIBIT 2C (continued)
the Employer if such individual's annual Compensation exceeds one hundred per-
cent 000%) of the dollar limitation under section 415(c)(1)(A) of the Code, a
5-percent owner of the Employer, or a 1-percent owner of the Employer who has an
annual Compensation of more than $150,000. Annual Compensation means
compensation as defined in Subsection 6.05(b) of the Plan, but including amounts
contributed pursuant to a salary reduction agreement which are excludable from
the Employee's gross income under sections 125, 402(e)(3), 402(h)(1)(B) or 403(b)
of the Code. The determination period is the Plan Year containing the Determina-
tion Date and the four (4) preceding Plan Years.
The determination of who is a Key Employee will be trade in accordance with
section 416(i)(1) of the Code and the regulations thereunder.
(d) Non -key Employee: Any Employee who does not meet the definition of Key
Employee.
(e) Permissive Aggregation Group: The Required Aggregation Group plus any other
qualified plans maintained by the Employer, but only if such group would satisfy in
the aggregate the requirements of sections 401(a)(.4) and 410 of the Code. The
Employer shall determine which plan to take into account in determining the Per-
missive Aggregation Group.
(f) Present Value: The Present Value based on the interest and mortality rates speci-
fied in the defined benefit plan aggregated with this Plan for the purpose of deter-
mining the top;heavy ratio.
(g) Required Aggregation Group:
(1) Each qualified Plan of the Employer in which at least one (1) Key Employee
participates or participated at any time during the determination period (re-
gardless of whether the Plan has terminated); and
(2) Any other qualified Plan of the Employer which enables a plan described in
(1) to meet the requirements of sections 401(a)(4) or 410 of the Code.
(h) Valuation Date: For purposes of computing the top-heaW ratio, the Valuation Date
shall be the last day of each Plan Year.
18.03 Determination of Top -Heavy Status. The Plan is top-heavy if any of the following condi-
tions exists:
(a) If the top-heavy ratio for this Plan exceeds sixty percent (60%) and this Plan is not
part of any Required Aggregation Group or Permissive Aggregation Group of plans.
(b) if this Plan is a part of a Required Aggregation Group of plans, but not part of a
Permissive Aggregation Group, and the top-heavy ratio for the group of plans ex-
ceeds sixty percent (60%).
® MPP 12/23/94
001-94
2Q53
EXHIBIT 2C (continued)
least one (1) hour of service with any Employer maintaining the Plan at any time
during the five (5) year period ending on the Determination Date will be disre-
garded. The calculation of the top-heavy ratio, and the extent to which distributions,
rollovers, and transfers are taken into account will be made in accordance with
section 416 of the Code and the regulations thereunder. Deductible Employee
Contributions will not be taken into account for purposes of computing the top-heavy
ratio. When aggregating plans the value of account balances and accrued benefits
will be calculated with reference to the Determination Dates that fall within the
same calendar year.
The accrued benefit of a Participant other than a Key Employee shall be deter-
mined under (a) the method, if any, that uniformly applies for accrual purposes
under all defined benefit plans maintained by the Employer, or (b) if there is no
such method, as if such benefit accrued not more rapidly than the slowest accrual
rate permitted under the fractional rule of section 411(b)(1)(C) of the Code.
18.05 Vesting Schedule. For any Plan Year in which this Plan is top-heavy, the Nonforfeitable
Interest of each Employee in his/her account balance attributable to Employer Contribu-
tions shall be determined on the basis of the following: one hundred percent (100%)
vesting at all times. The minimum vesting schedule applies to all benefits within the
meaning of section 411(a)(7) of the Code except those attributable to Employee Contri-
butions, including benefits accrued before the effective date of section 416 of the Code
and benefits accrued before the Plan became top-heavy. Further, no decrease in a
Participant's nonforfeitable percentage may occur in the event the Plan's status as top-heavy
changes for any Plan Year. However, this Section does not apply to the Account balances
of any Employee who does not have an hour of service after the Plan has initially become
top-heavy and such Employees Account balance attributable to Employer Contributions
and forfeitures will be determined without regard to this Section.
If the vesting schedule under the Plan shifts in or out of the above schedule for any Plan
Year because of the Plan's top-heavy status, such shift is an amendment to the vesting
schedule and the election in Section 15.02 of the Plan applies.
18.06 Minimum Employer Contribution.
(a) Except as otherwise provided in Subsection (c) below, the Employer Contributions
and forfeitures allocated on behalf of any Participant who is not a Key Employee for
any Plan Year for which the Plan is top heavy shall not be less than the lesser of
three percent (3%) of such Participant's Compensation or in the case where the
Employer has no defined benefit plan which designates this Plan to satisfy section
401 of the Code, the largest percentage of Employer Contributions and forfeitures,
as a percentage of the Key Employee's Compensation, as limited by section
401(a)(17) of the Code, allocated on behalf of any Key Employee for that year.
The minimum allocation is determined without regard to any Social Security
contribution. This minimum allocation shall be made even though, under other
Plan provisions, the Participant would not otherwise be entitled to receive an allo-
cation, or would have received a lesser allocation for the year because of (i) the
® MPP 12/23/94
001-94
2C55
a
EXHIBIT 213:
OPINION LETTER FROM IRS
XjrnM NAL RENENOE SERVICE
DISTRICT DIRECTOR
31 ROPKINS PLAZA
HALTnORE, ND 21201-0000
Date: December 19, 1994
International City Management
Association Retirement Corporation
777 North Capitol Street, NE
Washington, DC 20002-4240
DEPARTNENT or TSE TREASURY
Employer Identification Number:
23-7268394
File Folder Number:
524195046
Person to contact:
G.N. WALLACE
Contact Telephone Number:
(410) 962-92973
Plan Name:
ICMA Retirement Corporation Prototype
Money Purchase Plan & Trust
Plan Number: 001
Letter Serial Number:
D8520096
Dear Applicant:
The amendment to the form of the plan identified above is acceptable
under section 401 (a) of the Internal Revenue Code. This letter relates only
to the amendment to the form of the plan. it is not a determination of any
other amendment or of the form of the plan as a whole, or on the effect of
other federal or local statutes.
You must furnish a copy of this letter and the enclosed publication to
each employer who adopts this plan. You are also required to send a copy of
this letter, a copy of the approved form of the plan, and any approved amend-
ments and related documents to each key District Director of the Internal
Revenue Service in whose jurisdiction there are adopting employers.
The acceptability of the form of the plan is not a ruling or
determination as to whether an employer's plan qualifies under Code section
401(a) or 403(a). Therefore, an employer adopting the form of the plan should
apply for a determination letter by filing an application with the key
District Director of the Internal Revenue Service on Form 5307, Application
for Determination for Adopters of Master or Prototype, Regional Prototype or
Volume Submitter Plans.
Please advise those adopting the plan to contact you if they have any
questions about the operation of the plan.
We have sent a copy of this letter to your representative as indicated in
your Power of Attorney.
The original opinion letter for this plan was issued on September 26,
1991.
Letter 2026 (DO/CG)
2D:1
777 North Capitol Street, NE
Washington, DC 20002-4240
1-202-962-4600
FAX 1-202-962-4601
Toll Free 1-800-669-7400
Internet: http://www.icmarc.org
November 17, 1998
Joan Francone
Risk Manager
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058 0805
RE: Section 401 Money Purchase Plan Adoption
Dear Ms. Francone:
We are pleased that RC's Money Purchase Plan has been selected for your employees.
Enclosed is everything you need to adopt and implement RC's Money Purchase Plan
including:
_ Easy, step-by-step instructions for implementing the 401 Money Purchase
Pension Plan.
After reviewing the enclosed materials, please contact me or Kecia Morton directly of (800)
326-7272 with any questions you may have and to advise us if the adoption process is
expected to take longer than 30 days. To assist, you in implementing your new plan without
complication and as expeditiously as possible, Kecia Morton and I will be available to you
throughout the adoption process.
Thank you for your interest in RC.
Sincerely,
A. E. Dunston
Senior Implementation Analyst
Enclosures
cc Keith Sendall, VP, Territory Director
Sharon Cushina, Marketina Representative
7.6
r
EXHIBIT 2E:
DECLARATION OF TRUST
Appal%stiv
�N
2E:1
w
EXHIBIT 2E (continued)
Section 3.3 Nominations: The Trustees who are full-time
employees of Public Employers shall serve as the Nominat-
ing Committee for the Public Employee Trustees. The
Nominating Committee shall choose candidates for Public
Employee Trustee in accordance with the procedures set
forth in the Bylaws.
Section 3.4 Resignation and Removal: (a) Any Trustee may
resign as Trustee (without need for prior or subsequent
accounting) by an instrument in wri a g signed by the
Trustee and delivered to the other Trustees and such
resignation shall be effective upon such delivery, or at a
laterdate according to the terra of the instrument. Any of
the Trustees may be removed for cause. by a vote of a
majo tY of the Public Employers. (b) Each Public Em-
plooyyee Trustee shall resign his or her position as Trustee
w'ahin sixty days of the date on which be or she cases to
be a f sti-time employee of a Public Employer.
Section 3.5 Vacancies: The term of office of a Trustee shall
terminate and a vacancy shall occur in the event his or her
death, resignation, removal, adjudicated incompetence or
other incapacity to pe&cm the duties of the office of a
Trustee. In the ease of a vacancy, the remaining Trustees
shall oppanc such person as they in their discretion shall
see fit (subject to the limitations see forth in this Section),
toserveforthe unexpired portionoftheterm ofthe Trustee
who has resigned or otherwise ceased to be a Trustee. The
appointment shall be made by a written instrument signed
by a majority of the Trustees. The persons apppoainted must
be the same of Trustee (Lt., Public Employee Trustee
or ICMAIRCTrrustee) as the person who has ceased to be
a Trustee. An appointment of a Trustee may be trade in
anticipation of a vacancy to occur at a later date by reason
of retirement or resignation, provided that such appoint.
mentshuU not become effective priortosuch retimtnentor
resignation. Whenever a vacancy shall occur, until such
vacancy is filled as provided in this Section 3.5, the Tma-
ees in office, regardless of their number, shall have all the
powers granted to the Trustees and shall discharge all the
duties imposed upon the Trustees by this Declaration. A
written insttume t cert'{ ' the existence of a vacancy
signed by a majority of the Tnarees shall be conclusive
evidence of the existence of such vacancy.
Section 3.6 Trustees Serve in Repraastative Capacity: By
executsng this Declaration. each Public Emp er agrees
that the Public Employee Tntsteas dated by a Public
Employers as authorised to act as agents and mpoesenra-
tiva of the Public Employers collectively.
ARTICLE IV. POWERS OF TRUSTEES
Section4.1 General Powers: TheTrsteesshall have the power
to conduct the business of the Tnsa and to Carry on its
operuiont. Such power sulk include, but shall not be
limited to, the power to:
(a) receive the Trust Property from the Public Employers,
PublicEmployerTruueaortheameeaadminismtor
under any Employer Trust;
(b) enter into a contract with an Investment Adviser
providing, among other things for the establishment
and operation of the Portfolios, selection of the
Investment Contractsinwhich theTrut Property may
be invested, selection of the other investments for the
Trust Property and the payment of reasonable fees to
the Investment Adviser and to any sub -investment
adviser retained by the Investment Adviser,
(e) review e perkmame of the Investment
Adviser annually
and e annually the contract with such
Investment Adviser,
(d) invest and reinvest theTmK Property in the Portfolios,
the Investment Contractsand inanyotherinvestment
recommended by the Investment Adviser, but not
including securities issued by Public Employers.
provided that if a Public Employerhasdirected that its
monies be invested in one or more specified Portfolios
or in an Investment Contract, the Trustees of the
Retirement Trust shall invest such monies in
accordance with such directions;
(e) keepsuchportionofthseTrstPmperryineashoreash
balances as the Trustees, from time to time, may deem
to be in the best interest of the Retirement Trust
crated hereby without liability for interest thereon;
(f) accept and retain for such time as they may deem
advisable any securities or other property received or
acquired by them as Trustees hereunder, whether or
not such securities or other eroperry hereunder uld normally
be purchased as investment
(g) came any securities or other property held as part of
the True Property to be registered in the tame of the
Retirement Trust or in the name of a nominee, and to
hold any investments in bearer forth, but the books
and records of the Trustees shall at all t ima show that
all such investments are a part of the Trust Property;
(h) make, execute, acknowledge. and deliver any and all
documents of transfer and conveyance and any and all
otherirarrumenathat maybe neeessaryorapprtipriate
to carry out the powers herein granted;
(i) voterities; give
spot►speanycial
�stobonds. es- powers of attorneywith
or without power of substitution; exercise any
conversion privikga subscription rights, or other
options, and make any payments incidental thereto;
oppose, or content to, or otherwise participate in,
corporate reonganirationsor toaherehanges affecting
=ite severities, and delegate discretionary powers
and pay any anasments or charges in connection
therewith; and generally exercise any of the powers of
an owner with MSPW to stocks, bonds, securities or
other property held as part of the Trust Property;
(j) enter into contracts or arrangements for goods or
services required in connection with the operation of
the Retirement Trust, including, but not limited to,
contracts with custodians and contracts for the
provision of administrative servitor
(k) borrow or raise money for the purposes of the
Retirement Trust in such amount. and upon such
terns and conditions, as the Tr stea skull deem
advisable, provided that the aggregateamount ofsuch
borrowings shall not exceed 0%of the value of that
Test Property No pmm lading money to the
Tnstea shall be bound to see the (ication of the
matey lent a to inquire into is val' ity, expediency
or propriety or any such borrowing;
(1) incurreasorubleexpensaasmquimdfortheoPeration
of the Retirement Trust and deduct such expenses
from of the Trust Property;
(m) pay expenses properly allocable to the Trust Property
ircumdtnwms Wmwitht6Dcfemd twn
Plans. Qualified Plans. or the Employer Trusts and
deduct such expenta from that portion of the Trust
PmpcmwwhichswhcTenmatepmpetlyalboMe;
(n) pay out of the Test Property all real and Personal
propet�y taxes, income taxes and other taxes of any
and all kinds which, in the opinion of the Tn ismes.
ace properly levied, or assessed under existing or
future laws upon, or in respect of, the Toot Property
and allocate any such taxesto the appropriate accorma;
amended January I "S
2E:3
M
EXHIBIT 2F:
401 QUALIFIED PLAN EMPLOYER DATA FORM
401 QUALIFIED PLAN EMPLOYER DATA FORM
• Instructions to Employer. Provide nece mry iniormanon to establish your plan properly. Please contact Cient �'
Services at I.8W-326.7272. if you have any questions.
RC Use Only RIMIREMEVt
CORPORATION
1. Employer Number
General 2. Employer's Full Name (City of, County of, etc.)
Plan
Information 3. Employer's Mailing Address
4. City S. State 6. Zip Code
7. Employer's Federal Tax Identification Number
8. Number of Employees
9. Number of Employees Eligible for Plan
10. Last Month of Plan Year (write in month 01-12)
Contact 11. Title (not name) of Plan's Primary Contact Person
Information Primary Contact Person will automatically receive all RC correspondence, reports, and bulletins
Telephone ( )
12. Title (not name) of Contact Person for Benefit Payments
Telephone ( )
O Check here if Contact Person for Benefit Payments should receive RC correspondence,
reports and bulletins
13. Title (not name) of Contact Person for Contributions
Telephone ( )
O Check here if Contact Person for Contributions should receive RC correspondence, reports,
and bulletins
Now. If neither of the loxes in 12 or 13 is chc&e& default matalimiCk r wig be Plan Caotdimaor named in the tao6don.
Itttplemenlation 14. Contribution Frequency (check one): O (W) Weekly O (M) Monthly O Other (specify)
of Plan O (B) Biweekly O (S) Semi-monthly
IS. Contribution Data Format (check one): O M Tape O (QD) QUICK DISK O (E) EDT
O (C) Contribution Statement O (D) Diskette
16. First pay date following plan implementation
17. Are employees covered by the plan also covered by another qualified plant O Yes O No
ICMA Retirement Corporation • P.O. Box 96220 '- *Washington, DC 20090 6220 • 1-800.326 7272
2F:1
ICMA RETIREMENT CORPORATION
PROTOTYPE MONEY PURCHASE PLAN &TRUST
ADOPTION AGREEMENT
#001
Account Number
The Employer hereby establishes a Money Purchase Plan and Trust to be known as
(the "Plan") in the form of the ICMA Retirement
Corporation Prototype Money Purchase Plan and Trust.
This Plan is an amendment and restatement of an existing defined contribution money purchase plan.
❑ Yes ❑ No
If yes, please specify the name of the defined contribution money purchase plan which this Plan
hereby amends and restates:
I. Employer:
II. Prototype Sponsor:
Name: ICMA Retirement Corporation
Address: 777 N. Capitol Street, N.E.
Washington, D.C. 20002-4240
Telephone Number: (202) 962-4600
III. The Effective Date of the Plan shall be the first day of the Plan Year during which the
Employer adopts the Plan, unless an alternate Effective Date is hereby specified:
IV. Plan Year will mean:
❑ The twelve (12) consecutive month period which coincides with the limita-
tion year. (See Section 6.05(i) of the Plan.)
❑ The twelve (12) consecutive month period commencing on and
each anniversary thereof.
M 11
MPP Adoption Agreement 12/23/94 A �r
001-94 ��
V. Normal Retirement Age shall be age (not to exceed age 65).
VI. ELIGIBILITY REQUIREMENTS:
The following group or groups of Employees are eligible to participate in the Plan:
All Employees
All Full -Time Employees
Salaried Employees
Non -union Employees
Management Employees
Public Safety Employees
General Employees
Other (specify below)
The group specified must correspond to a group of the same designation that is defined
in the statutes, ordinances, rules, regulations, personal manuals or other material in
effect in the state or locality of the Employer.
2. The Employer hereby waives or reduces the requirement of a twelve (12) month
Period of Service for participation. The required Period of Service shall be
(write N/A if an Employee is eligible to participate upon employment).
If this waiver or reduction is elected, it shall apply to all Employees within the
Covered Employment Classification.
3. A minimum age requirement is hereby specified for eligibility to participate. The
minimum age requirement is (not to exceed age 21. Write N/A if no
minimum age is declared.)
VII. CONTRIBUTION PROVISIONS
The Employer shall contribute as follows (choose one, if applicable):
❑ Fixed Employer Contributions With Or Without Mandatory Participant
Contributions.
The Employer shall contribute on behalf of each Participant To of
Earnings or $ for the Plan Year (subject to the limitations of Article VI
of the Plan). Each Participant is required to contribute % of Earnings
or $ for the Plan Year as a condition of participation in the Plan. (Write
"0" if no contribution is required.) If Participant Contributions are required
under this option, a Participant shall not have the right to discontinue or
vary the rate of such contributions after becoming a Plan Participant.
MPP Adoption Agreement 12/23/94
001-94
The Employer hereby elects to "pick up" the Mandatory/Required Participant
Contribution.
❑ Yes ❑ No
[Note to Employer: Neither an opinion letter issued by the Internal
Revenue Service with respect to the Prototype Plan, nor a determination
letter issued to an adopting Employer is a ruling by the Internal Revenue
Service that Participant contributions that are picked up by the Employer are
not includable in the Participant's gross income for federal income tax pur-
poses. The Employer may seek such a ruling.
Picked up contributions are excludable from the Participant's gross
income under section 414(h)(2) of the Internal Revenue Code of 1986 only
if they meet the requirements of Rev. Rut. 81-35, 1981-1 C.B. 255. Those
requirements are (1) that the Employer must specify that the contributions,
although designated as employee contributions, are being paid by the Em-
ployer in lieu of contributions by the employee; and (2) the employee must
not have the option of receiving the contributed amounts directly instead of
having them paid by the Employer to the plan.]
❑ Fixed Employer Match of Participant Contributions.
The Employer shall contribute on behalf of each Participant _% of Earn-
ings for the Plan Year (subject to the limitations of Articles V and VI of the
Plan) for each Plan Year that such Participant has contributed % of
Earnings or $ . Under this option, there is a single, fixed rate of Em-
ployer contributions, but a Participant may decline to make the required
Participant contributions in any Plan Year, in which case no Employer contri-
bution will be made on the Participant's behalf in that Plan Year.
❑ Variable Employer Match Of Participant Contributions.
The Employer shall contribute on behalf of each Participant an amount de-
termined as follows (subject to the limitations of Articles V and VI of the Plan):
% of the Participant contributions made by the Participant for
the Plan Year (not including Participant contributions exceeding % of
Earnings or $ );
PLUS % of the contributions made by the Participant for the
Plan Year in excess of those included in the above paragraph (but not in
Participant contributions exceeding in the aggregate % of Earnings
or $ ).
Employer Contributions on behalf of a Participant for a Plan Year
shall not exceed $ or % of Earnings, whichever is ❑ more or
❑ less.
MPP Adoption Agreement 12/23/94
001-94
2. Each Participant may make voluntary (unmatched), after-tax contribution, subject to
the limitations of Section 4.05 and Articles V and VI of the Plan.
❑ Yes ❑ No
3. Employer contributions and Participant contributions shall be contributed to the
Trust in accordance with the following payment schedule:
VIII. EARNINGS
Earnings, as defined under Section 2.09 of the Plan, shall include:
(a) ' Overtime
❑ Yes ❑ No
(b) Bonuses ❑ No
El Yes
IX. LIMITATION ON ALLOCATIONS
If the Employer (i) maintains or ever maintained another qualified plan in which any Par-
ticipant in this Plan is (or was) a participant or could possibly become a participant, and/or
60 maintains a welfare benefit fund (as defined in section 419(e) of the Code) or an indi-
vidual medical account (as defined in section 415(l)(2) of the Code, under which amounts
are treated as Annual Additions with respect to any Participant in this Plan) the Employer
hereby agrees to limit contributions to all such plans as provided herein, if necessary in order
to avoid excess contributions (as described in Sections 6.03 and 6.04 of the Plan).
1. If the Participant is covered under another qualified defined contribution plan
maintained by the Employer, other than a Regional Prototype Plan, the provisions
of Section 6.02(a) through (f) of the Plan will apply as if the other plan were a
Master Prototype Plan, unless another method has been indicated below.
❑ Other Method. (Provide the method under which the plans will limit
total Annual Additions to the Maximum Permissible Amount, and will
properly reduce any excess amounts, in a manner that precludes Employer
discretion.)
MPP Adoption Agreement 12/23/94
0 001-94
2. If the Participant is or has ever been a participant in a defined benefit plan main-
tained by the Employer, and if the limitation in Section 6.04 of the Plan would be
exceeded, then the Participant's Projected Annual Benefit under the defined benefit
plan shall be reduced in accordance with the terms thereof to the extent necessary to
satisfy such limitation. If such plan does not provide for such reduction, or if the
limitation is still exceeded after the reduction, annual additions shall be reduced to
the extent necessary in the manner described in Sections 6.01 through 6.03. The
methods of avoiding the limitation described in this paragraph will not apply if the
Employer indicates another method below.
❑ Other Method. (Note to Employer: Provide below language which will satisfy
the 1.0 limitation of section 415(e) of the Code. Such language must
preclude Employer discretion. See section 1.415-1 of the Regulations for
guidance.)
3. The limitation year is the following 12-consecutive month period:
X. VESTING PROVISIONS
The Employer hereby specifies the following vesting schedule, subject to (1) the minimum
vesting requirements as noted and (2) the concurrence of the Plan Administrator.
Years of
Service
Completed
Zero
One
Two
Three
Four
Five
Six
Seven, or more
Specified Minimum
Percent Vesting
Vestine Requirements"
No minimum
No minimum
No minimum
%
Not less than 20%
%
Not less than 40%
%
Not less than 60%
%
Not less than 80%
100 %
Must equal 100%
( "These minimum vesting requirements conform to the Code's three to seven year vesting
schedule. If the employee becomes 100% vested by the completion of five years of service,
there is no minimum for years three and four.)
XI. Loans are permitted under the Plan, as provided in Article XIV:
❑ No
MPP Adoption Agreement 12/23/94
001-94
XII. The Employer hereby attests that it is a unit of state or local government or an agency or
instrumentality of one or more units of state or local government.
XIII. The Prototype Sponsor hereby agrees to inform the Employer of any amendments to the
Plan made pursuant to Section 15.05 of the Plan or of the discontinuance or abandonment
of the Plan.
XIV. The Employer hereby appoints the Prototype Sponsor as the Plan Administrator pursuant to
the terms and conditions of the ICMA RETIREMENT CORPORATION PROTOTYPE
MONEY PURCHASE PLAN & TRUST.
The Employer hereby agrees to the provisions of the Plan and Trust.
XV. The Employer hereby acknowledges it understands that failure to properly fill out this
Adoption Agreement may result in disqualification of the Plan.
XVI. An adopting Employer may not rely on a notification letter issued by the National or
District Office of the Internal Revenue Service as evidence that the Plan is qualified
under section 401 of the Internal Revenue Code. In order to obtain reliance with
respect to plan qualification, the Employer must apply to the appropriate key district
office for a determination letter.
This Adoption Agreement may be used only in conjunction with basic Plan document
number 001.
In Witness Whereof, the Employer hereby causes this Agreement to be executed on
this day of , 19_.
EMPLOYER Accepted: ICMA RETIREMENT CORPORATION
Title:
Attest:
J
om
Title: Corporate Secretary
Attest:
MPP Adoption Agreement 12/23/94
001-94
General
Plan
Information
Contact
Information
1
401 QUALIFIED PLAN EMPLOYER DATA FORM
• Instructions to Employer: Provide necessary information to establish your plan properly. Please contact Client '
Services at 1.800-326.7272, if you have any questions.
RC Use Onl tCMA
y RETIREMENT
CORPORATION
1. Employer Number
2. Employer's Full Name (City of, County of, etc.)
3. Employer's Mailing Address
4. City 5. State 6. Zip Code
7. Employer's Federal Tax Identification Number
8. Number of Employees
9. Number of Employees Eligible for Plan
10. Last Month of Plan Year (write in month 01-12)
11. Title (not name) of Plan's Primary Contact Person
Primary Contact Person will automatically receive all RC correspondence, reports, and bulletins
Telephone ( )
12. Title (not name) of Contact Person for Benefit Payments
Telephone ( )
❑ Check here if Contact Person for Benefit Payments should receive RC correspondence,
reports and bulletins
13. Title (not name) of Contact Person for Contributions
Telephone ( )
❑ Check here if Contact Person for Contributions should receive RC correspondence, reports,
and bulletins
Note: If neither of the boxes in 12 or 13 is checked, default correspondent will be Plan Coordinator named in the resolution.
Implementation 14. Contribution Frequency (check one): ❑ (W) Weekly ❑ (M) Monthly ❑ Other (specify)
of Plan ❑ (B) Biweekly ❑ (S) Semi-monthly
15. Contribution Data Format (check one): ❑ (T) Tape ❑ (QD) QUICK DISK ❑ (E) EDT
❑ (C) Contribution Statement ❑ (D) Diskette
16. First pay date following plan implementation
17. Are employees covered by the plan also covered by another qualified plan? ❑ Yes ❑ No
ICMA Retirement Corporation - P.O. Box 96220 - Washington, DC 20090-6220 - 1-800-326-7272
401 (QUALIFIED PLAN EMPLOYEE CENSUS FORM
................................................
• Instructions to Employer: List all employees initially eligible to participate in your Qualified Plan.
Photocopies of this form may be used if needed. If you prefer not to use this form, provide a separate list
that includes the same information. This form does not enroll participants in your plan. Please include an ICMA
RETIREMENT
Employee Enrollment Form for each eligible participant, including terminated employees. CORPORATION
Date
Page of
Employer Name Employer State
Employee Name
Social Security
Number
Date of
Employment
Date of
Termination*
Annual
Salary
Birthdate
* if applicable
ICMA Retirement Corporation • P.O. Box 96220 • Washington, DC 20090-6220 • 1-800-326-7272
ICMA RETIREMENT CORPORATION
P.O. BOX 96220
WASHINGTON, DC 20090-6220
1-800-326-7272
BRC1 A1-005-9709
ADMINISTRATIVE SERVICES AGREEMENT
Type: 401
Account Number: 9760
Plan # 9760
ADMINISTRATIVE SERVICES AGREEMENT
This Agreement, made as of the day of
199 , (herein referred to as the "Inception Date"), between The International
City Management Association Retirement Corporation ("RC"), a nonprofit corporation
organized and existing under the laws of the State of Delaware; and the City of
Vernon ("Employer") a City organized and existing under the laws of the State of
California with an office at 4305 Santa Fe Avenue, Vernon, California 90058-0805.
Recitals
Employer acts as a public plan sponsor for a retirement plan ("Plan") with
responsibility to obtain investment alternatives and services for employees
participating in that Plan;
The ICMA Retirement Trust (the "Trust") is a common law trust governed
by an elected Board of Trustees for the commingled investment of retirement funds
held by state and local governmental units for their employees;
RC acts as investment adviser to the Trust; RC has designed, and the
Trust offers, a series of separate funds (the "Funds") for the investment of plan
assets as referenced in the Trust's principal disclosure document, "Making Sound
Investment Decisions: A Retirement Investment Guide." The Funds are available
only to public employers and only through the Trust and RC.
In addition to serving as investment adviser to the Trust, RC provides a
complete offering of services to public employers for the operation of employee
retirement plans including, but not limited to, communications concerning investment
alternatives, account maintenance, account record -keeping, investment and tax
reporting, form processing, benefit disbursement and asset management.
r' Plan # 9760
Agreements.
Employer hereby designates RC as Administrator of the Plan to perform
all non -discretionary functions necessary for the administration of the Plan with
respect to assets in the Plan deposited with the Trust. The functions to be performed
by RC include:
(a) allocation in accordance with participant direction of individual
accounts to investment Funds offered by the Trust;
(b) maintenance of individual accounts for participants reflecting
amounts deferred, income, gain, or loss credited, and amounts disbursed as benefits;
(c) provision of periodic reports to the Employer and participants of the
status of Plan investments and individual accounts;
(d) communication to participants of information regarding their rights
and elections under the Plan; and
(e) disbursement of benefits as agent for the Employer in accordance
with terms of the Plan.
••• •� • ��
Employer has adopted the Declaration of Trust of the ICMA Retirement
Trust and agrees to the commingled investment of assets of the Plan within the Trust.
Employer agrees that operation of the Plan and investment, management and
disbursement of amounts deposited in the Trust shall be subject to the Declaration
of Trust, as it may be amended from time to time and shall also be subject to terms
and conditions set forth in disclosure documents (such as the Retirement Investment
Guide or Employer Bulletins) as those terms and conditions maybe adjusted from time
to time. It is understood that the term Employer Trust" as it is used in the
Declaration of Trust shall mean this Administrative Services Agreement.
Employer agrees to furnish to RC on a timely basis such information as
is necessary for RC to carry out its responsibilities as Administrator
oothe
Plan
n
including information needed to allocate individual participant accounts
the Trust, and information as to the employment status of participants, and
participant ages, addresses and other identifying information (including tax
Plan # 9760
identification numbers). RC shall be entitled to rely upon the accuracy of any
information that is furnished to it by a responsible official of the Employer or any
information relating to an individual participant or beneficiary that is furnished by such
participant or beneficiary, and RC shall not be responsible for any error arising from
its reliance on such information. RC will provide account information in reports,
statements or accountings.
� �i:i�t%11�■�lacl<�t:1:ii�c.n►O�in�:.=•••=M__ ___—•_I!_ _
-a.2P
RC represents and warrants to Employer that:
(a) RC is a non-profit corporation with full power and authority to enter
into this Agreement and to perform its obligations under this Agreement. The ability
of RC to serve as investment adviser to the Trust is dependent upon the continued
willingness of the Trust for RC to serve in that capacity.
(b) RC is an investment adviser registered as such with the Securities
and Exchange Commission under the Investment Advisers Act of 1940, as amended.
ICMA-RC Services, Inc. (a wholly owned subsidiary of RC) is registered as a broker -
dealer with the Securities and Exchange Commission (SEC) and is a member in good
standing of the National Association of Securities Dealers, Inc.
RC covenants with employer that:
(c) RC shall maintain and administer the Plan in compliance with the
requirements for plans which satisfy the qualification requirements of Section 401 of
the Internal Revenue Code; provided, however, RC shall not be responsible for the
qualified status of the Plan in the event that the Employer directs RC to administer the
Plan or disburse assets in a manner inconsistent with the requirements of Section 401
or otherwise causes the Plan not to be carried out in accordance with its terms;
provided, further, that if the plan document used by the Employer contains terms that
differ from the terms of RC's standardized plan document, RC shall not be responsible
for the qualified status of the Plan to the extent affected by the differing terms in the
Employer's plan document.
Employer represents and warrants to RC that:
(d) Employer is organized in the form and manner recited in the opening
paragraph of this Agreement with full power and authority to enter into and perform
its obligations under this Agreement and to act for the Plan and participants in the
manner contemplated in this Agreement. Execution, delivery, and performance of this
Agreement will not conflict with any law, rule, regulation or contract by which the
Employer is bound or to which it is a party.
Plan # 9760
The Employer hereby authorizes RC to act as agent, to appear on its
behalf, and to join the Employer as a necessary party in all legal proceedings involving
the garnishment of benefits or the transfer of benefits pursuant to the divorce or
separation of participants in the Employer Plan. Unless Employer notifies RC
otherwise, Employer consents to the disbursement by RC of benefits that have been
garnished or transferred to a former spouse, spouse or child pursuant to a domestic
relations order.
•u•-t •t •t• all
(a) Plan Administration Fee. The amount to be paid for plan
administration services under this Agreement per annum of shall
he
amount of Plan assets invested in the Trust.S ch fee shall becomputed basedon
average daily net Plan assets in the Trust.
(b) Account Maintenance Fee. There shall bean annual
account
January
maintenance fee of $0.00. The account maintenance fee is payable in full
1 of each year on each account in existence on that date. For accounts established
after January 1, the fee is payable on the first day of the calendar quarter following
establishment and is prorated by reference to the number of calendar quarters
remaining on the day of payment.
(c) Compensation for Management Services to the Trust. Employer
acknowledges that in addition to amounts payable under services sAgfurnishede t, RC receives
he Trust,
fees from the Trust for investment management
except that this fee is not assessed in the Mutual Fund Series
(d) Mutual Fund Services Fee. There is an annual
o0 25% of
assets under management that are held in the Trusts Mutual Fund Series.
(e) Model Portfolio Fund Fee. There is an annual charge of 0.10% of
assets under management that are held in the Trust's Model Portfolio Funds.
(f) Payment Procedures. All payments
Trust and shallrsuant to this Section
be paid by the Trust
6 shall be paid out of the Plan Assets held by t
The amount of Plan Assets held in the Trust shall be adjusted by the Trust as required
to reflect such payments.
7. Custody
Employer understands that amounts
invested in the Trust are to be
Plan # 9760
remitted directly to the Trust in accordance
instructions
any check orprovided
wire transfer
by RC and are not to be remitted to RC. n the event that
is incorrectly labeled or transferred to RC, RC will return it to Employer with proper
instructions.
=;P;F4114]fi161•
RC shall not be responsible for any acts or omissions of any person other
than RC in connection with the administration or operation of the Plan.
This Agreement may be terminated without penalty by either party on
sixty days advance notice in writing to the other.
(a) This Agreement may not be amended except by written instrument
signed by the parties.
(b) The parties .agree that compensation
arrangements may be adjusted as
Agreement and administrative and operational 9.
follows:
RC may propose an adjustment by written notice to the Employer given
at least 60 days before the effective date of the ad But a ens and the Rot reme t
nt and the notice may
appear in disclosure documents such as Employer
Investment Guide. Such adjustment shall become effective unless, within the 60 day
period before the effective date the Employer notifies RC in writing that it does not
accept such adjustment, in which event the parties will negotiate with respect to the
adjustment.
(c) No failure to exercise and no delay in exercising any right, remedy,
power or privilege hereunder shall operate as a waiver of such right, remedy, power
or privilege.
11. Notices
All notices required to be delivered under Section 10 of this Agreement
shall be delivered personally or by registered or certified mail, postage prepaid, return
receipt requested, to (i) Legal Department, ICMA Retirement Corporation, 777 North
Capitol Street, N.E., Suite 600, Washington, D.C, 20002-4240; (ii) Employer at the
office set forth in the first paragraph hereof, or to any other address designated by
Plan # 9760 "
the party to receive the same by written notice similarly given.
•��• - - - • --u-2
This Agreement shall constitute the sole agreement between RC and
Employer relating to the object of this Agreement and correctly sets forth the
complete rights, duties and obligations of each party to the other as of its date. Any
prior agreements, promises, negotiations or representations, verbal or otherwise, not
expressly set forth in this Agreement are of no force and effect.
This agreement shall be governed by and construed in accordance with
the laws of the State of California applicable to contracts made in that jurisdiction
without reference to its conflicts of laws provisions.
In Witness Whereof, the parties hereto have executed this Agreement
as of the Inception Date first above written.
ATTEST:
%xl�- Z"v -e7
Bruce V. Ma kenhorst
CITY CLERK
APPROVED AS TO FORM:
,C)" J �� ". b a,-L
David B. Brearley
CITY ATTORNEY
CITY OF VERNON
by.
Si nature/Date
Leonis C Malburg, MAYOR
Name and Title (Please Print)
INTERNATIONAL CITY MANAGEMENT
ASSOCIATION RETIREMENT
CORPORATION
by:
Paul Gallagher/Date
Corporate Secretary
Plan # 09
t ADMINISTRATIVE SERVICES AGREEMENT
This Agreement, made as of the day of
199 , (herein referred to as the "Inception Date"), between The International
City Management Association Retirement Corporation ("RC"), a nonprofit corporation
organized and existing under the laws of the State of Delaware; and the City of
Vernon ("Employer") a City organized and existing under the laws of the State of
California with an office at 4305 Santa Fe Avenue, Vernon, California 90058-0805.
Recitals
Employer acts as a public plan sponsor for a retirement plan ("Plan") with
responsibility to obtain investment alternatives and services for employees
participating in that Plan;
The ICMA Retirement Trust (the "Trust") is a common law trust governed
by an elected Board of Trustees for the commingled investment of retirement funds
held by state and local governmental units for their employees;
RC acts as investment adviser to the Trust; RC has designed, and the
Trust offers, a series of separate funds (the "Funds") for the investment of plan
assets as referenced in the Trust's principal disclosure document, "Making Sound
Investment Decisions: A Retirement Investment Guide." The Funds are available
only to public employers and only through the Trust and RC.
In addition to serving as investment adviser to the Trust, RC provides a
complete offering of services to public employers for the operation of employee
retirement plans including, but not limited to, communications concerning investment
alternatives, account maintenance, account record -keeping, investment and tax
reporting, form processing, benefit disbursement and asset management.
-2
1. Appointment of RC
Plan # &9
Agreements
Employer hereby designates RC as Administrator of the Plan to perform
all non -discretionary functions necessary for the administration of the Plan with
respect to assets in the. Plan deposited with the Trust. The functions to be performed
by RC include:
(a) allocation in accordance with participant direction of individual
accounts to investment Funds offered by the Trust;
(b) maintenance of individual accounts for participants reflecting
amounts deferred, income, gain, or loss credited, and amounts disbursed as benefits;
(c) provision of periodic reports to the Employer and participants of the
status of Plan investments and individual accounts;
(d) communication to participants of information regarding their rights
and elections under the Plan; and
(e) disbursement of benefits as agent for the Employer in accordance
with terms of the Plan.
2. Adoption of Trust
Employer has adopted the Declaration of Trust of the ICMA Retirement
Trust and agrees to the commingled investment of assets of the Plan within the Trust.
Employer agrees that operation of the Plan and investment, management and
disbursement of amounts deposited in the Trust shall be subject to the Declaration
of Trust, as it may be amended from time to time and shall also be subject to terms
and conditions set forth in disclosure documents (such as the Retirement Investment
Guide or Employer Bulletins) as those terms and conditions may be adjusted from time
to time. It is understood that the term "Employer Trust as it is used in the
Declaration of Trust shall mean this Administrative Services Agreement.
3. Employer Duty to, Furnish Information
Employer agrees to furnish to RC on a timely basis such information as
is necessary for RC to carry out its responsibilities as Administrator of the Plan,
including information needed to allocate individual participant accounts to Funds in
the Trust, and information as to the employment status of participants, and
participant ages, addresses and other identifying' information (including tax
Plan # 09
identification numbers). RC shall be entitled to rely upon the accuracy of any
information that is furnished to it by a responsible official of the Employer or any
information relating to an individual participant or beneficiary that is furnished by such
participant or beneficiary, and RC shall not be responsible for any error arising from
its reliance on such information. RC will provide account information in reports,
statements or accountings.
4. Certain Representations Warranties. and Covenants
RC represents and warrants to Employer that:
(a) RC is a non-profit corporation with full power and authority to enter
into this Agreement and to perform its obligations under this Agreement. The ability
of RC to serve as investment adviser to the Trust is dependent upon the continued
willingness of the Trust for RC to serve in that capacity. ,
(b) RC is an investment adviser registered as such with the Securities
and Exchange Commission under the Investment Advisers Act of 1940,-as amended.
ICMA-RC Services, Inc. (a wholly owned subsidiary of RC) is registered as a broker -
dealer with the Securities and Exchange Commission (SEC) and is a member in good
standing of the National Association of Securities Dealers, Inc.
RC covenants with employer that:
(c) RC shall maintain and administer the Plan in compliance with the
requirements for plans which satisfy the qualification requirements of Section 401 of
the Internal Revenue Code; provided, however, RC shall not be responsible for the
qualified status of the Plan in the event that the Employer directs RC to administer the
Plan or disburse assets in a manner inconsistent with the requirements of Section 401
or otherwise causes the Plan not to be carried out in accordance with its terms,
provided, further, that if the plan document used by the Employer contains terms that
differ from the terms of RC's standardized plan document, RC shall not be responsible
for the qualified status of the Plan to the extent affected by the differing terms in the
Employer's plan document..
Employer represents and warrants to RC that:
(d) Employer is organized in the form and 'manner recited in the opening
paragraph of this Agreement with full power and authority to enter into and perform
- its obligations under this Agreement and to act for the Plan and; participants in the
manner contemplated in this Agreement. Execution, delivery, and performance of this
Agreement will not conflict with any 'law, rule, regulation or contract by which the
Employer is bound or to which it is a party.'
-4
Plan # &9
5. Participation in Certain Proceedings
The Employer hereby authorizes RC to act as agent, to appear on its
behalf, and to join the Employer as a necessary party in all legal proceedings involving
the garnishment of benefits or the transfer of benefits pursuant to the divorce or
separation of participants in the Employer Plan. Unless Employer notifies ,RC
otherwise, Employer consents to the disbursement by RC of benefits that have been
garnished or transferred to a former spouse, spouse or child pursuant to a domestic
relations order.
6. Compensation and Payment
(a) Plan Administration Fee. The amount to be paid for plan
administration services under this Agreement shall be 0.75% 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.
(b)-Account Maintenance Fee. There shall be an annual account
maintenance fee of $0.00. The account maintenancefee is payable in full on January
1 of each year on each account in existence on that date. For accounts established
after January 1, the fee is payable on the first day of the calendar quarter following
establishment and is prorated by reference to the number of calendar quarters
remaining on the day of payment.
(c) Compensation for Management Services to the Trust. Employer
acknowledges that in addition to amounts payable under this Agreement, RC receives
fees from the Trust for investment management services furnished to the Trust,
except that this fee is not assessed in the Mutual Fund Series
(d) Mutual Fund Services Fee. There is an annual charge of 0.25% of
assets under management that are held in the Trust's Mutual Fund Series.
(e) Model Portfolio Fund Fee. There is an annual charge of 0.10% of
assets under management that are held in the Trust's Model Portfolio Funds.
(f) Payment Procedures.'. All payments to RC pursuant to this Section
6 shall be paid out of the Plan Assets held by the Trust and shall be paid by the Trust.
The amount of Plan Assets held in the Trust shall be adjusted by the Trust as required
to reflect such payments.
7. Custody
Employer understands that amounts invested in the Trust are to be
_5_
t
Plan # a9
remitted directly to the Trust in accordance with instructions provided to Employer
by RC and are not to be remitted to RC. In the event that any check or wire transfer
is incorrectly labeled or transferred to RC, RC will return, it to Employer with proper
instructions.
8. Responsibility
RC shall not be responsible for any acts or omissions of any person other
than RC in connection with the administration or operation of the Plan.
9. Term
This Agreement may be terminated without penalty by either party on
sixty days advance notice in writing to the other.
10. Amendments and Adjustments
(a) This Agreement may not be amended except by written instrument
signed by the parties.
(b) The parties agree that compensation for services under this
Agreement and administrative and operational arrangements may be adjusted as
follows:
RC may propose an adjustment by written notice to the Employer given
at least 60 days before the effective dateof the adjustment and the notice may
appear in disclosure documents such as Employer Bulletins and the Retirement
Investment Guide. Such adjustment shall become effective unless, within the 60 day
period before the effective ` ate the Employer notifies RC in writing that it does not
accept such adjustment, in which event the parties will negotiate with respect to the
adjustment.
(c) No failure to exercise and no delay in exercising any right, remedy,
power or privilege hereunder shall operate as a waiver of such right, remedy, power
or privilege.
11. Notices
All notices required to be delivered under Section 10 of this Agreement
shall be delivered personally or by registered or certified mail, postage prepaid, return
receipt requested, to (i) Legal Department, ICMA Retirement Corporation, '777 North
Capitol Street, N E., Suite 600, Washington, D.C, 20002-4240; (ii) Employer at the
office set forth in the first paragraph hereof, or to any other address designated by
-6
0
Plan # *9
the party to receive the same by written notice similarly given.
12. Complete Agreement
This Agreement shall constitute the sole agreement between RC and
Employer relating to the object of this Agreement and correctly sets forth the
complete rights, duties and obligations of each party to the other as of its date. Any
prior agreements, promises, negotiations or representations, verbal or otherwise, not
expressly set forth in this Agreement are of no force and effect.
13. Governing Law
This agreement shall be governed by and construed in accordance with
the laws of the State of California applicable to contracts madein that jurisdiction
without reference to its conflicts of laws provisions.
In Witness Whereof, the parties hereto have executed this Agreement
as of the Inception Date first above written.
CITY OF VERNON
by:
Plan # 40
the party to receive the same by written notice similarly given.
12. Complete Agreement
This Agreement shall constitute the sole agreement between RC and
Employer relating to the object of this Agreement and correctly sets forth the
complete rights, duties and objigations of each party to the other as of its date. Any
prior agreements, promises, negotiations or representations, verbal or otherwise, not
expressly set forth in this Agreement are of no force and effect.
13. Governina Law
This agreement shall be governed by and construed in accordance with
the laws of the State of California applicable to contracts made in that jurisdiction
without reference to its conflicts of laws provisions.
In Witness Whereof, the parties hereto have executed this Agreement
as of the Inception Date first above written.
CITY OF VERNON
by:
S nnature/Date
ATTEST: Leonis C. Malburg MAYOR
Name and Title (Please Print)
Bruce V. Malkenhorst INTERNATIONAL CITY MANAGEMENT
CITY CLERK ASSOCIATION RETIREMENT
APPROVED AS TO FORM: CORPO ION
by:
O Paul Gallagher/Date
David B. Brearley Corporate Secretary
CITY ATTORNEY
J9�
I mg V N Lei a U: &ND a ISC&AN00
PLAN &TRUST
EMPLOYER PLAN
RETURN BOOKLET
Complete each form in this booklet and return to us.
ICMA RETIREMENT CORPORATION
The public service Vantagepoint since 1972
001-94
USING THIS DOCUMENT
Prototype Money Purchase Plan & Trust
Employer Plan Adoption Booklet
This is one of two booklets containing information to establish your Prototype Money
Purchase Plan & Trust with the ICMA Retirement Corporation. Please return the following
forms to RC:
1. Completed Resolution.
• Use the RC Suggested Resolution enclosed.
• Complete your own Resolution. If you are using your own Resolution, please
have it reviewed by RC prior to passage.
2. Adoption Agreement. Complete all sections of the Agreement and execute.
3. Employer Data Form. Complete all sections.
4. Employee Census Form. Complete all sections or, if you prefer, provide the same
information on a separate sheet.
Once you are ready to begin completing this information, please contact the Customer
Services staff, toll -free at 1-800-326-7272 for assistance.
ICMA Retirement Corporation • P.O. Box 96220 • Washington, DC 20090-6220 • 1-800-326-7272
(001)
SUGGESTED RESOLUTION FOR A LEGISLATIVE BODY
RELATING TO A MONEY PURCHASE PLAN
RESOLUTION OF ("Employer").
WHEREAS, the Employer has employees rendering valuable services; and
WHEREAS, the establishment of a money purchase retirement plan benefits employees by providing funds for retirement
and funds for their beneficiaries in the event of death; and
WHEREAS, the Employer desires that its money purchase retirement plan be administered by the ICMA Retirement
Corporation and that the funds held under such plan be invested in the ICMA Retirement Trust, a trust established by public
employers for the collective investment of funds held under their retirement and deferred compensation plans:
NOW THEREFORE BE IT RESOLVED that the Employer hereby establishes or has established a money purchase
retirement plan (the "Plan") in the form of: (Select one)
❑ The ICMA Retirement Corporation Prototype Money Purchase Plan and Trust, pursuant to the specific
provisions of the Adoption Agreement (executed copy attached hereto).
❑ The Plan and Trust provided by the Employer (executed copy attached hereto).
The Plan shall be maintained for the exclusive benefit of eligible employees and their beneficiaries; and
BE IT FURTHER RESOLVED that the Employer hereby executes the Declaration of Trust of the ICMA Retirement Trust,
attached hereto, intending this execution to be operative with respect to any retirement or deferred compensation plan
subsequently established by the Employer, if the assets of the plan are to be invested in the ICMA Retirement Trust.
BE IT FURTHER RESOLVED that the Employer hereby agrees to serve as trustee under the Plan and to invest funds held
under the Plan in the ICMA Retirement Trust; and
BE IT FURTHER RESOLVED that the (use title of official, not name) shall be the
coordinator for the Plan; shall receive necessary reports, notices, etc., from the ICMA Retirement Corporation or the ICMA
Retirement Trust; shall cast, on behalf of the Employer, any required votes under the ICMA Retirement Trust; may delegate
any administrative duties relating to the Plan to appropriate departments; and
BE IT FURTHER RESOLVED that the Employer hereby authorized to execute all
necessary agreements with the ICMA Retirement Corporation incidental to the administration of the Plan.
BE IT FURTHER RESOLVED that the Employer hereby authorized to execute all
necessary agreements with the ICMA Retirement Corporation incidental to the administration of the Plan.
I,
(Council Member, Trustee, etc.) of
(Council, Board, etc.) of the (City, County, etc.) of
thereof assembled this
AYES:
NAYS:
ABSENT:
(SEAL)
Clerk of the (City, County, etc.) of
do hereby certify that the foregoing resolution proposed by
, was duly passed and adopted by the
at a regular meeting
day of , 19 , by the following vote:
Clerk of the (City, County, etc.)
ICMA Retirement Corporation • P.O. Box 96220 • Washington, DC 20090-6220 9 1-800-326-7272
ICMA RETIREMENT CORPORATION
PROTOTYPE MONEY PURCHASE PLAN & TRUST
ADOPTION AGREEMENT
#001
Account Number
The Employer hereby establishes a Money Purchase Plan and Trust to be known as
(the "Plan") in the form of the ICMA Retirement
Corporation Prototype Money Purchase Plan and Trust.
This Plan is an amendment and restatement of an existing defined contribution money purchase plan.
❑ Yes ❑ No
If yes, please specify the name of the defined contribution money purchase plan which this Plan
hereby amends and restates:
I. Employer:
II. Prototype Sponsor:
Name: ICMA Retirement Corporation
Address: 777 N. Capitol Street, N.E.
Washington, D.C. 20002-4240
Telephone Number: (202) 962-4600
III. The Effective Date of the Plan shall be the first day of the Plan Year during which the
Employer adopts the Plan, unless an alternate Effective Date is hereby specified:
IV. Plan Year will mean:
❑ The twelve (12) consecutive month period which coincides with the limita-
tion year. (See Section 6.050) of the Plan.)
❑ The twelve (12) consecutive month period commencing on and
each anniversary thereof.
i
MPP Adoption Agreement 12/23/94
i 001-94
V. Normal Retirement Age shall be age (not to exceed age 65).
VI. ELIGIBILITY REQUIREMENTS:
The following group or groups of Employees are eligible to participate in the Plan:
All Employees
All Full -Time Employees
Salaried Employees
Non -union Employees
Management Employees
Public Safety Employees
General Employees
Other (specify below)
The group specified must correspond to a group of the same designation that is defined
in the statutes, ordinances, rules, regulations, personal manuals or other material in
effect in the state or locality of the Employer.
The Employer hereby waives or reduces the requirement of a twelve 02) month
Period of Service for participation. The required Period of Service shall be
(write N/A if an Employee is eligible to participate upon employment).
If this waiver or reduction is elected, it shall apply to all Employees within the
Covered Employment Classification.
3. A minimum age requirement is hereby specified for eligibility to participate. The
minimum age requirement is (not to exceed age 21. Write N/A if no
minimum age is declared.)
VII. CONTRIBUTION PROVISIONS
The Employer shall contribute as follows (choose one, if applicable):
❑ Fixed Employer Contributions With Or Without Mandatory Participant
Contributions.
The Employer shall contribute on behalf of each Participant % of
Earnings or $ for the Plan Year (subject to the limitations of Article VI
of the Plan). Each Participant is required to contribute % of Earnings
or $ for the Plan Year as a condition of participation in the Plan. (Write
"0" if no contribution is required.) If Participant Contributions are required
under this option, a Participant shall not have the right to discontinue or
vary the rate of such contributions after becoming a Plan Participant.
F
MPP Adoption Agreement 12/23/94
The Employer hereby elects to "pick up" the Mandatory/Required Participant
Contribution.
❑ Yes ❑ No
[Note to Employer: Neither an opinion letter issued by the Internal
Revenue Service with respect to the Prototype Plan, nor a determination
letter issued to an adopting Employer is a ruling by the Internal Revenue
Service that Participant contributions that are picked up by the Employer are
not includable in the Participant's gross income for federal income tax pur-
poses. The Employer may seek such a ruling.
, Picked up contributions are excludable from the Participant's gross
income under section 414(h)(2) of the Internal Revenue Code of 1986 only
if they meet the requirements of Rev. Rul. 81-35, 1981-1 C.B. 255. Those
requirements are (1) that the Employer must specify that the contributions,
although designated as employee contributions, are being paid by the Em-
ployer in lieu of contributions by the employee; and (2) the employee must
not have the option of receiving the contributed amounts directly instead of
having them paid by the Employer to the plan.]
❑ Fixed Employer Match of Participant Contributions.
The Employer shall contribute on behalf of each Participant _% of Earn-
ings for the Plan Year (subject to the limitations of Articles V and VI of the
Plan) for each Plan Year that such Participant has contributed % of
Earnings or $ . Under this option, there is a single, fixed rate of Em-
ployer contributions, but a Participant may decline to make the required
Participant contributions in any Plan Year, in which case no Employer contri-
bution will be made on the Participant's behalf in that Plan Year.
❑ Variable Employer Match Of Participant Contributions.
The Employer shall contribute on behalf of each Participant an amount de-
termined as follows (subject to the limitations of Articles V and VI of the Plan):
% of the Participant contributions made by the Participant for
the Plan Year (not including Participant contributions exceeding % of
Earnings or $ );
- PLUS % of the contributions made by the Participant for the
Plan Year in excess of those included in the above paragraph (but not includ-
ing Participant contributions exceeding in the aggregate % of Earnings
or $ ).
Employer Contributions on behalf of a Participant for a Plan Year
shall not exceed $ or % of Earnings, whichever is ❑ more or
❑ less.
MPP Adoption Agreement 12/23/94
001-94
2. Each Participant may make voluntary (unmatched), after-tax contribution, subject to
the limitations of Section 4.05 and Articles V and VI of the Plan.
❑ Yes ❑ No
3. Employer contributions and Participant contributions shall be contributed to the
Trust in accordance with the following payment schedule:
VIII. EARNINGS
Earnings, as defined under Section 2.09 of the Plan, shall include:
(a) ' Overtime
(b) Bonuses
❑ Yes ❑ No
❑ Yes ❑ No
IX. LIMITATION ON ALLOCATIONS
If the Employer (i) maintains or ever maintained another qualified plan in which any Par-
ticipant in this Plan is (or was) a participant or could possibly become a participant, and/or
GO maintains a welfare benefit fund (as defined in section 419(e) of the Code) or an indi-
vidual medical account (as defined in section 4150)(2) of the Code, under which amounts
are treated as Annual Additions with respect to any Participant in this Plan) the Employer
hereby agrees to limit contributions to all such plans as provided herein, if necessary in order
to avoid excess contributions (as described in Sections 6.03 and 6.04 of the Plan).
1. If the Participant is covered under another qualified defined contribution plan
maintained by the Employer, other than a Regional Prototype Plan, the provisions
of Section 6.02(a) through (f) of the Plan will apply as if the other plan were a
Master Prototype Plan, unless another method has been indicated below.
❑ Other Method. (Provide the method under which the plans will limit
total Annual Additions to the Maximum Permissible Amount, and will
properly reduce any excess amounts, in a manner that precludes Employer
discretion.)
74
MPP Adoption Agreement 12/23/94
001-94
2. If the Participant is or has ever been a participant in a defined benefit plan main-
tained by the Employer, and if the limitation in Section 6.04 of the Plan would be
exceeded, then the Participant's Projected Annual Benefit under the defined benefit
plan shall be reduced in accordance with the terms thereof to the extent necessary to
satisfy such limitation. If such plan does not provide for such reduction, or if the
limitation is still exceeded after the reduction, annual additions shall be reduced to
the extent necessary in the manner described in Sections 6.01 through 6.03. The
methods of avoiding the limitation described in this paragraph will not apply if the
Employer indicates another method below.
❑ Other Method. (Note to Employer: Provide below language which will satisfy
the 1.0 limitation of section 415(e) of the Code. Such language must
preclude Employer discretion. See section 1.415-1 of the Regulations for
guidance.)
3. The limitation year is the following 12-consecutive month period:
X. VESTING PROVISIONS
The Employer hereby specifies the following vesting schedule, subject to (1) the minimum
vesting requirements as noted and (2) the concurrence of the Plan Administrator.
Years of
Specified
Minimum
Service
Percent
Vesting
Completed
Vesting
Requirements"
Zero
%
No minimum
One
%
No minimum
Two
%
No minimum
Three
%
Not less than 20%
Four
%
Not less than 40%
Five
%
Not less than 60%
Six
%
Not less than 80%
Seven, or more
100 %
Must equal 100%
( "These minimum vesting requirements conform to the Code's three to seven year vesting
schedule. If the employee becomes 100% vested by the completion of five years of service,
there is no minimum for years three and four.)
XI. Loans are permitted under the Plan, as provided in Article XIV:
❑ Yes ❑ No
MPP Adoption Agreement 12/23/94
001-94 9
XII. The Employer hereby attests that it is a unit of state or local government or an agency or
instrumentality of one or more units of state or local government.
XIII. The Prototype Sponsor hereby agrees to inform the Employer of any amendments to the
Plan made pursuant to Section 15.05 of the Plan or of the discontinuance or abandonment
of the Plan.
XIV. The Employer hereby appoints the Prototype Sponsor as the Plan Administrator pursuant to
the terms and conditions of the ICMA RETIREMENT CORPORATION PROTOTYPE
MONEY PURCHASE PLAN & TRUST.
The Employer hereby agrees to the provisions of the Plan and Trust.
XV. The Employer hereby acknowledges it understands that failure to properly fill out this
Adoption Agreement may result in disqualification of the Plan.
XVI. An adopting Employer may not rely on a notification letter issued by the National or
District Office of the Internal Revenue Service as evidence that the Plan is qualified
under section 401 of the Internal Revenue Code. In order to obtain reliance with
respect to plan qualification, the Employer must apply to the appropriate key district
office for a determination letter.
This Adoption Agreement may be used only in conjunction with basic Plan document
number 001.
In Witness Whereof, the Employer hereby causes this Agreement to be executed on
this day of , 19_.
EMPLOYER Accepted: ICMA RETIREMENT CORPORATION
By: By:
Title: Title: Corporate Secretary
Attest: Attest:
MPP Adoption Agreement 12/23/94
001-94
General
Plan
Information
401 QUALIFIED PLAN EMPLOYER DATA FORM
• Instructions to Employer: Provide necessary information to establish your plan properly. Please contact Client
Services at 1-800-326-7272, if you have any questions.
RC Use Only
1. Employer Number
2. Employer's Full Name (City of, County of, etc.)
3. Employer's Mailing Address
4. City
5. State 6. Zip Code
7. Employer's Federal Tax Identification Number
8. Number of Employees
9. Number of Employees Eligible for Plan
10. Last Month of Plan Year (write in month 01-12)
e%11
ICMA
RETIREMENT
CORPORATION
Contact 11. Title (not name) of Plan's Primary Contact Person
Information Primary Contact Person will automatically receive all RC correspondence, reports, and bulletins
Telephone ( )
12. Title (not name) of Contact Person for Benefit Payments
Telephone( )
❑ Check here if Contact Person for Benefit Payments should receive RC correspondence,
reports and bulletins
13. Title (not name) of Contact Person for Contributions
Telephone ( )
❑ Check here if Contact Person for Contributions should receive RC correspondence, reports,
and bulletins
Note: If neither of the boxes in 12 or 13 is checked, default correspondent will be Plan Coordinator named in the resolution.
Implementation 14. Contribution Frequency (check one): ❑ (W) Weekly ❑ (M) Monthly ❑ Other (specify)
of Plan ❑ (B) Biweekly ❑ (S) Semi-monthly
15. Contribution Data Format (check one): ❑ (T) Tape ❑ (QD) QUICK DISK ❑ (E) EDT
❑ (C) Contribution Statement ❑ (D) Diskette
16. First pay date following plan implementation
17. Are employees covered by the plan also covered by another qualified plan? ❑ Yes ❑ No
ICMA Retirement Corporation • P.O. Box 96220 • Washington, DC 20090-6220 9 1-800-326-7272
Employer Na
401 QUALIFIED PLAN EMPLOYEE CENSUS FORM
• Instructions to Employer: List all employees initially eligible to participate in your Qualified Plan. '
Photocopies of this form may be used if needed. If you prefer not to use this form, provide a separate list ,
that includes the same information. This form does not enroll participants in your plan. Please include an ICMA
Employee Enrollment Form for each eligible participant, including terminated employees. RETIREMENT
CORPORATION
Date
Page of
Employer State
Employee Name
Social Security
Number
Date of
Employment
Date of
Termination*
Annual
Salary
Birthdate
* If applicable
ICMA Retirement Corporation • P.O. Box 96220 9 Washington, DC 20090-6220 0 1-800-326-7272
ICMA RETIREMENT CORPORATION
P.O. BOX 96220
WASHINGTON, DC 20090-6220
1-800-326-7272
B RC1 A1-005-9709
(001)
SUGGESTED RESOLUTION FOR A LEGISLATIVE BODY
RELATING TO A MONEY PURCHASE PLAN
RESOLUTION OF
("Employer").
WHEREAS, the Employer has employees rendering valuable services; and
WHEREAS, the establishment of a money purchase retirement plan benefits employees by providing funds for retirement
and funds for their beneficiaries in the event of death; and
WHEREAS, the Employer desires that its money purchase retirement plan be administered by the ICMA Retirement
Corporation and that the funds held under such plan be invested in the ICMA Retirement Trust, a trust established by public
employers for the collective investment of funds held under their retirement and deferred compensation plans:
NOW THEREFORE BE IT RESOLVED that the Employer hereby establishes or has established a money purchase
retirement plan (the "Plan") in the form of: (Select one)
❑ The ICMA Retirement Corporation Prototype Money Purchase Plan and Trust, pursuant to the specific
provisions of the Adoption Agreement (executed copy attached hereto).
❑ The Plan and Trust provided by the Employer (executed copy attached hereto).
The Plan shall be maintained for the exclusive benefit of eligible employees and their beneficiaries; and
BE IT FURTHER RESOLVED that the Employer hereby executes the Declaration of Trust of the ICMA Retirement Trust,
attached hereto, intending this execution to be operative with respect to any retirement or deferred compensation plan
subsequently established by the Employer, if the assets of the plan are to be invested in the ICMA Retirement Trust.
BE IT FURTHER RESOLVED that the Employer hereby agrees to serve as trustee under the Plan and to invest funds held
under the Plan in the ICMA Retirement Trust; and
BE IT FURTHER RESOLVED that the (use title of official, not name) shall be the
coordinator for the Plan; shall receive necessary reports, notices, etc., from the ICMA Retirement Corporation or the ICMA
Retirement Trust; shall cast, on behalf of the Employer, any required votes under the ICMA Retirement Trust; may delegate
any administrative duties relating to the Plan to appropriate departments; and
BE IT FURTHER RESOLVED that the Employer hereby authorized to execute all
necessary agreements with the ICMA Retirement Corporation incidental to the administration of the Plan.
BE IT FURTHER RESOLVED that the Employer hereby authorized to execute all
necessary agreements with the ICMA Retirement Corporation incidental to the administration of the Plan.
I, , Clerk of the (City, County, etc.) of
(Council Member, Trustee, etc.) of
(Council, Board, etc.) of the (City, County, etc.) of
thereof assembled this day
AYES:
NAYS:
ABSENT:
(SEAL)
do hereby certify that the foregoing resolution proposed by
, was duly passed and adopted by the
at a regular meeting
19 , by the following vote:
Clerk of the (City, County, etc.)
ICMA Retirement Corporation • P.O. Box 96220 • Washington, DC 20090-6220 • 1-800-326-7272
How to Set Up Your 401(a) Money Purchase Plan
Starting a 401(a) Money Purchase Plan with the ICMA Retirement Corporation is as simple as following the
steps outlined below. For more detailed assistance in completing the Adoption documents, please review
Chapter 2 of the Employer Manual. Do not hesitate to call our Implementation Analyst at (800)326-7272,
should you need further assistance.
Note: If you are planning to use a plan document other than RC's model plan document, it is imperative that
you submit a copy of the plan document to our Implementation Analyst for review and approval before you
proceed with completing adoption materials. We must ensure that your plan document meets IRS
requirements and that the provisions of the plan document can be administered by RC. Additionally, please
complete the General Plan Information Document to assist us in configuring our recordkeeping system to the
provisions of your plan.
Step One: Adopt the Retirement Corporation as your plan administrator by executing the. Trust
Adoption Resolution, included in the Employer Plan Adoption Booklet. The resolution
should be certified and a copy retained in your office. The original should be returned to this
office in the enclosed envelope.
If you choose to use a resolution other than the one enclosed, please ensure that it
specifically adopts the ICMA Retirement Corporation Money Purchase Plan (or an
individually designed plan which has been approved by our office) and executes the ICMA
Retirement Trust.
Step Two: Complete and execute the Adoption Agreement in the Employer Plan Adoption Booklet.
Please refer to Chapter 5 of the Employer Manual for information regarding contribution
classifications and taxability. Note: Clients using a plan document other than RC's model
plan document should complete the General Plan Information Document instead of the
Adoption Agreement.
Step Three: Execute both of the Administrative Services Agreements. We will counter -execute both
documents and return an original to you along with the Notice of Plan Acceptance.
Step Four: Complete the Employer Data Form, Employee Census Form, and the Transferred Asset
Information Sheet. Also, please complete the Loan Guidelines if loans are permitted in your
plan.
Step Five: 401 Employee Enrollment Forms are included in the Employee Enrollment Kits that we
provide. Initially, 401 Employee Enrollment Forms should be sent to the attention of the
Implementation Analyst, along with the other completed adoption materials, to ensure that
accounts are established in a timely manner. Enrollment Forms submitted after the adoption
process has been completed should be mailed to the ICMA Retirement Corporation post
office box referenced on the Enrollment Form.
Step Six: If you are transferring an existing pension plan to RC, the 401 Employer Plan Conversion
Form must be completed by each participant and forwarded to our Implementation Analyst
along with 401 Employee Enrollment Forms. Our Implementation Analyst will assist you in
coordinating the transfer of existing assets and documents to the Retirement Corporation.
Step Seven: Return the following to our Implementation Analyst in the pre -addressed, pre -paid envelope
provided:
O An original certified copy of the executed Trust Adoption Resolution
O Executed Adoption Agreement (or General Plan Information Document*)
O Two original executed Administrative Services Agreements
O Completed Employer Data Form
O Employee Census Form
O Transferred Asset Information Sheet
O Loan Guidelines (if loans are permitted in your plan)
O 401 Employee Enrollment Forms to the Retirement Corporation
O 401 Employer Plan Conversion Form (if you are transferring assets to RC)
If you cannot locate the pre -addressed, pre -paid envelope, please return the completed
adoption materials to:
New Plan Intake
ICMA Retirement Corporation
777 North Capitol Street, NE
Suite 600
Washington, DC 20002-4240
Step Eight: The Retirement Corporation will send you a written Notice of Plan Acceptance, a counter -
executed Administrative Services Agreement, and the form you will need to begin
submitting contributions to RC.
Step Nine: You may begin submitting contributions to the Retirement Trust. Before submitting any
money to the plan, please read the instructions found irChapter 4 of the Manual.
*Note: Clients using a plan document other than RC's model plan document should complete the
General Plan Information Document instead of the Adoption Agreement.
71
PLEASE NOTE...
WE HAVE DEPLETED OUR SUPPLY OF EMPLOYER'
MANUALS. A MANUAL WILL BE SENT TO YOU ONCE OUR
SUPPLY HAS BEEN REPLENISHED.
IL
LAW OFFICES OF
ERIC T. FRESCH
CITICORP CENTER, ONE SANSOME STREET
TWENTY-FIRST FLOOR
SAN FRANCISCO, CALIFORNIA 94104
TELEPHONE (415) 951-1035
FAX (415) 9SI-4660
December 9, 1998
Mr. Bruce V. Malkenhorst
City Administrator
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
I Re:
Dear Bruce:
The ICMA-RC is offering the City of Vernon the opportunity to implement an ICMA-
RC administered qualified retirement plan under §401(a) of the Internal Revenue Code
CIRC"). Several legal questions must be resolved in order for the City Council to
deliberate on whether to adopt this retirement plan for one or more of the City's
employees.
The following questions represent the pertinent issues this letter will address:
(1) May the City sponsor more than one type of retirement plan
(2) What type of retirement plan is ICMA-RC administering?
(3) Do the retirement plan documents submitted by ICMA-RC to the City meet the
requirements of the federal tax laws?
and
(4) What process must the City undertake in order to implement the §401(a) Money
Purchase Pension Plan?
The City of Vernon may sponsor more than one type of plan for its employees. The
City may implement a qualified retirement plan for one or more employees under IRC
MEMORANDUM
TO: Bruce V. Malkenhorst, City Administrator
FROM: Joan Francone, Risk Manager/Personnel Assistant
DATE: December 10, 1998
SUBJECT: CITY OF VERNON SPONSORED SECTION 401(a) MONEY PURCHASE
PLAN ADMINISTERED BY THE ICMA RETIREMENT CORPORATION
As you know, the City participates in the Internal Revenue Code (IRC) Section 457
deferred compensation plan sponsored by ICMA. In addition, the City may sponsor
another type of plan for one or more employees under IRC Section 401(a).
ICMA is offering to administer a defined contribution plan, Section 401(a) Money
Purchase Plan which is designed to provide employees or their beneficiaries with
benefits that will be paid upon retirement or for a period of years after retirement.
The plan submitted requires only the City as an employer to make contributions.
IRC Section 415 allows an annual maximum contribution of $30,000 (indexed for
cost of living) or 25% of the employee's compensation, whichever Js less. The
V annual contribution amounts for 1998 and 1999 are limited to $20,000- per year due
to recent changes in the tax laws. In the year 2000 these limitations are removed and
contributions to the IRC Section 401(a) pension plan can be at the $30,000 level.
The attached retirement plan documents submitted by ICMA meet the requirements
of the federal tax laws. ICMA has given the City a Prototype Money Purchase Plan
and Trust Basic Document 001 to adopt in order to implement an IRC Section 401(a)
Money Purchase Pension Plan in 1998.
The attached documents are submitted for Council approval and adoption.
JF/ca
Enclosures
c: City Attorney
LAW OFFICES OF
EIRIC T. FI3ESCH
CITICORP CENTER, ONE SANSOME STREET
TWENTY-FIRST FLOOR
SAN FRANCISCO, CALIFORNIA 94104
TELEPHONE (4151 951-1035
FAX (415) 951-4660
December 9, 1998
Mr. Bruce V. Malkenhorst
City Administrator
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Re: City of Vernon Sponsored §401(a) Money Purchase Plan
Administered by the ICMA Retirement Corporation ("ICMA-RC")
Dear Bruce:
The ICMA RC is offering the City of Vernon the opportunity to implement an ICMA-
RC administered qualified retirement plan under §401(a) of the Internal Revenue Code
("IRC" ). Several legal questions must be resolved in order for the City Council to
deliberate on whether to adopt this retirement plan for one or more of the City's
employees.
The following questions represent the pertinent issues this letter will address:
(1) May the City sponsor more than one type of retirement plan for its employees?
(2) What type of retirement plan is ICMA-RC administering?
(3) Do the retirement plan documents submitted by ICMA-RC to the City meet the
requirements of the federal tax laws?
and
(4) What process must the City undertake in order to implement the §401(a) Money
Purchase Pension Plan?
The City of Vernon may sponsor more than one type of plan for its employees. The
City may implement a qualified retirement plan for one or more employees under IRC
Mr. Bruce V. Malkenhorst
December 9, 1998
Page 2
§401(a) and maintain an IRC §457 deferred compensation arrangement or plan for the
City's employees.
ICMA-RC is offering to administer a defined contribution retirement plan. A defined
contribution plan provides for an individual account for each employee -participant and
for benefits based on the amount contributed to the employee's account adjusted for
income, expenses, gains and losses, and forfeitures allocated to the account.
There are several types of defined contribution plans. ICMA RC is administering a
money purchase plan. A money purchase plan is a pension plan designed to provide
employees or their beneficiaries with benefits that will be paid upon retirement or for a
period of years after retirement. ICMA-RC has submitted to the City a pension plan
which requires only the City as an employer to make contributions. The employer's
annual contribution is determined by a specific formula, involving either a percentage of
compensation of the covered employee or a flat dollar amount.
Under a money purchase pension plan no definite pension benefit is guaranteed to the
employee at retirement. An employee's retirement benefit will be the benefit that can
be purchased with his vested account balance at retirement. Annual contributions to the
plan cannot be based on an indefinite or discretionary formula. The plan will be
considered a retirement plan by the IRC if the employer contributions are defined or
fixed with benefits to be determined. A money purchase plan is classified as a pension
plan because the benefits, by virtue of a fixed contribution formula, are actuarially
predictable.
IRC §415 sets forth limits on annual contributions applicable to defined contribution
money purchase plans. The maximum annual addition with respect to any plan year
cannot exceed the lesser of $30,000 (indexed for cost of living) or 25% of the employee's
compensation. Annual addition is an IRC term which includes employer and employee
contributions and forfeitures. The limitation year is the calendar year or another
reasonable 12 month period as the employer elects.
For the plan currently submitted to the City, all annual additions are contributed by the
City for the key employee. The annual contribution amounts for 1998 and 1999 are
limited to $20,000 per year. Because of recent changes in the tax laws, contributions to
IRC §401(a) pension plans are limited based upon the employee's salary, years of service
and contributions made to CALPERS. In the year 2000 these limitations shall be
removed and contributions to the IRC §401(a) pension plan can be at the $30,000 level
without regard to contributions made to CALPERS.
ICMA-RC shall submit at a later date another defined contribution pension plan for the
Mr. Bruce V. Malkenhorst
December 9, 1998
Page 3
City Council's consideration, with different rules, that requires annual contributions from
only the City's employees. Under that plan, the annual contribution required must be
uniform, the same from each employee. The contribution may be a fixed annual sum or
based on a fixed percentage of the employee's annual compensation.
The annual contributions to the IRC §401(a) money purchase pension plan and the
contributions to CALPERS do not affect the employee contributions allowed under the
City's IRC §457 deferred compensation plan. The maximum amount of compensation an
employee may defer under an IRC §457 plan in a taxable year cannot exceed the lesser
of $8,000 or 331/s % of the employee's includible compensation for the taxable year. The
331/6 % figure works out to 25 % after wading through the definition of includible
compensation.
The retirement plan documents submitted by ICMA RC meet the requirements of the
federal tax laws. ICMA-RC has given the City a Prototype Money Purchase Plan and
Trust Basic Document 001 to adopt in order to implement an IRC §401(a) Money
Purchase Pension Plan in 1998. The Internal Revenue Service ("IRS") issued a favorable
determination for this document in 1994. This plan document is in the process of being
revised because of changes in the tax laws. The Taxpayer Relief Act of 1997 exempts
public sector " retirement plans from complex and costly nondiscrimination
requirements and participation rules. The new law allows the City to sponsor different
IRC §401(a) plans for its various employees.
The term "qualified" plan means a pension plan that has met the requirements of the
IRC and regulations. These requirements must be met both by the plan's terms and its
operation. The IRC provisions applicable to governmental qualified plans concern the
following subjects: formal plan required (IRC §401(a)(1)); exclusive benefit to
employees (IRC §401(a)(2)); special nondiscrimination rules (IRC §401(a)(5)); quarterly
participation tests (IRC §401(a)(6)); vesting requirements (IRC §401(a)(7)); forfeitures,
required distributions and maximum benefits (IRC §401(a)(8), (9) and (16)); and
maximum compensation (IRC §401(a)(17)).
The pension plan may be approved in writing as a qualified plan by the IRS. The IRS
will issue a determination letter that the pension plan is qualified and therefore entitled
to favorable tax treatment. The tax advantages include the ability of the employee to
exclude from his gross income his interest in the employer contributions or in the income
earned by the trust fund until the employee actually receives the funds.
The City and ICMA-RC are not required to seek an IRS determination letter in order
for the City's IRC §401(a) pension plan to obtain the benefits of qualified status. The
plan submitted to the City by ICMA-RC satisfies the IRC qualification requirements.
Mr. Bruce V. Malkenhorst
December 9, 1998
Page 4
ICMA RC submits its plan to the IRS for a determination letter to be prudent and
insure qualified status.
Recent changes in the tax laws have caused ICMA-RC to revise both its IRC §401(a)
and IRC §457 plans. Both of these plans have been submitted to the IRS for a
determination letter. Last Friday, December 4, 1998, the IRS issued a favorable
determination letter for the ICMA-RC §401(a) money purchase pension plan. A new
model plan document to replace the current protoplan document will be submitted to
the City after the first of January, 1999. The City Council must approve the current plan
document submitted if it wants to implement the IRC §401(a) pension plan this year.
This current document satisfies the IRC qualification requirements and may be used
until the end of 1999.
In order to implement an IRC §401(a) pension plan this year, the City Council must
adopt by resolution the ICMA Retirement Plan Corporation Prototype Money Purchase
Plan and Trust pursuant to the provisions of the Adoption Agreement, which the City
must execute. The City Council must also adopt ICMA RC as the City's Plan
Administrator and execute the Administrative Services Agreement and appoint a City
employee as a coordinator for the Plan.
The documents necessary to undertake this pension plan are attached to this letter.
ICMA-RC has put together a list of documents and forms which must be filled out in
order to implement the IRC §401(a) Money Purchase Plan. ICMA-RC has assigned
A.E. Dunston and Kecia Morton to work with the City's staff on the plan adoption
process. They can be reached at (800) 326-7272.
Please contact me if you have any questions. I look forward to meeting with you
regarding this plan.
Sincerely,
C."
Eric Fresch
EF:wg
cc: Joan Francone
Martha Valenzuela