HomeMy WebLinkAboutR-1992-D6138 Retirement Plan / Budget / PersonnelRESOLUTION NO. D 613
A RESOLUTION authorizing execution of an ICMA Retirement Corporation
Prototype Money Purchase Plan Adoption Agreement;
providing for amendments to the Money Purchase Plan to
meet Federal Internal Revenue Service requirements; and
providing for authorization for the Director of Finance &
Budget to execute future plan amendments.
WHEREAS, in 1986 by Resolution No. D-5307, the City of Yakima did
establish a Money Purchase Plan for the City Manager because of the
withdrawal of the City Manager from Washington's Public Employee's
Retirement System Plan; and
WHEREAS, the City's contribution to said money purchase plan are in
lieu of contribution to Public Employees' Retirement System; and
WHEREAS, the Federal Tax Reform Act of 1986 (TRA '86). and the
Technical and Miscellaneous Revenue Act of 1988 (TAMRA '88) required
several technical changes to be formally made to said Money Purchase Plan by
year-end 1993 to comply with the changes; and
WHEREAS, said Money Purchase Plan to remain in conformance with
federal tax requirements must be amended, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
YAKIMA:
The Director of Finance and Budget is hereby authorized to execute the
attached and incorporated ICMA Retirement Corporation Prototype Money
Purchase Plan and Trust Adoption Agreement; and
BE IT FURTHER RESOLVED that the Director of Finance and Budget of
the City of Yakima be authorized to execute future amendments of said
agreement provided that contribution levels for employer and employee remain
at current rates within said plan
ADOPTED BY THE CITY COUNCIL this
ayof , 1992.
ATTEST:
Legalibd
Resolutions /ICMA
ICMA Retirement Corporation
Protolype Money Purchase
Plan & Trust
Adoption Agreement
ie
ICMA g
RETIREMENT
CORPORATION
001-91F
ICMA RETIREMENT CORPORATION
PROTOTYPE MONEY PURCHASE PLAN
& TRUST ADOPTION AGREEMENT
#001
The Employer hereby establishes a Money Purchase Plan and Trust to be known as C i ty of Yak ima
Money Purchase Plan
(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:
City of Yakima
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 Pian shall be the first day of the Plan Year during which the Employer adopts the
Plan, unless an alternate Effective Date is hereby specified: Novembe r 18, 1986
Month/Day
IV. Plan Year will mean:
❑ The twelve (12) consecutive month period that coincides with the limitation year. (See Section 6.05(i) of
the Plan.)
❑ The twelve (12) consecutive month period commencing on and each anniversary
thereof. Month/Day
V. Normal Retirement Age shall be age 5 5 (not to exceed age 65).
1 001-91F
VI. ELIGIBILITY REQUIREMENTS:
1. The following groups of Employees are eligible to participate in the Plan:
❑ All Employees
❑ All Full -Time Employees
❑ Salaried Employees
❑ Non -Union Employees
O Management Employees
O Public Safety Employees
O General Employees
® Other (specify below)
Yakima City Manager
2. The Employer hereby waives or reduces the requirement of a twelve (12) month Period of Service for
participation. The required Penod 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 N/A (not toexceedage 21). (Write N/A if no minimum age is declared.)
VII. CONTRIBUTION PROVISIONS
1. The Employer shall contribute as follows (choose one):
O Fixed Employer Contributions With or Without Mandatory Participant Contributions.
The Employer shall contribute on behalf of each Participant 8. 81 % of
Earnings or $ for the Plan Year (subject to the limitations of Article VI
of the Plan). Each Participant is required to contribute 6 % 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.
The Employer hereby elects to "pick up" the Mandatory/Required Parucipant Contribution.
0 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 Emplo) er are not
includable in the Participant's gross income for federal income tax purposes. 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 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
2 001-91F
contributions, although designated as Employee contributions, are being paid by the Employer
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
Earnings for the Pian 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 Employer contribu-
tions, but a Participant may decline to make the required Participant contributions in any Plan
Year, in which case no Employer contribution 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 determined as follows
(subject to the limitations of Articles V and VI of the Plan):
0 % of the contributions made by the Participant for the Plan Year
(not including Participant contributions exceeding % of Earn-
ings or $ );
0 PLUS % of the contributions made by the Participant for the
Plan Year in excess of those included in the above paragraph (but not including
Participant contributions exceeding in the aggregate % o�
Earnings or $ ).
❑ Employer contributions on behalf of a Participant for a Plan Year shall not excecc'
$ or % of Earnings, whichever is
❑ more or 0 less.
2. Each Participant may make a voluntary (unmatched), after-tax contribution, subject to the (imitations c
Section 4.04 and Articles V and VI of the Plan.
❑ Yes ® No
3. Employer contributions and Participant contributions shall be contributed to the Trust in accordance v, it
the following payment schedule:
Monthly
VIII. EARNINGS
Earnings, as defined under Section 2.09 of the Plan, shall include:
1. Overtime 0 Yes 0 No
2. Bonuses 0 Yes 0 No
3 001-c
IX. LIMITATION ON ALLOCATIONS
If the Employer (i) maintains or ever maintained another qualified plan in which any Participant in this Plan is (or
was'i a participant or could possibly become a participant, and/or (ii) maintains a welfare benefit fund (as defined
in Se, uon 419(e) of the Code) or an individual medical account (as defined in Section 415(1)(2) of the Code, under
w hich 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 (t) of the Plan will apply
as if the other plan were a Master or Prototype Plan, unless another method has been indicated below.
2.
❑ 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.)
If the Participant is or has ever been a participant in a defined benefit plan maintained by the Employer,
and if the limitation in Section 6.04 of the Plan would beexceeded, 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 sausfy 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. Sec section
1.415-1 of the Regulations for guidance.)
3. The limitation year is the following twelve (12) consecutive month period:
Month/Day
4 001-91F
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
Percent
Vesting
0
0 %
0 %
0 %
* 100%
Minimum
Vesting
Requirements**
No minimum
No minimum
No minimum
Not less than 20%
Not less than 40%
Not less than b0%
Not less than 80%
100 % Must equal 100%
*Incumbent City Manager at
this probram shall be ves
(**Th§s , frifkam'vesting requirements conform to the Code's
becomes 100% vested by the completion of five years of service,
XI. INVESTMENT OPTION
the time of implementation of
ted immediately due to2years of
three- to seven-year vesting schedule. If the employee
there is no minimum for years three and four.)
❑ A Participant may direct his/her investment only to or into an investment option that provides a guarantee
of principal.
❑ A Participant may direct his/her investment of not more than % in an investment
opuon which does not provide any guarantee of principal.
A Parucipant may direct his/her investment, without restriction, among various investment options
available under the Trust.
❑ Specify any other investment restrictions:
XII. BENEFITS UPON SEPARATION
1. Upon separation from service for reason other than death, disability, or attainment of Normal Retirement
Age, the Participant may elect to commence receiving benefits from the following accounts, without regard
to age:
a) Employer Contribution Account (Nonforfeitable Interest)
b) Participant Contribution Account (if applicable)
c) Participant Portable Benefits Account
-2 Yes ❑ No
® Yes ❑ No
® Yes ❑ No
5 001-91F
2. If "no" to any of the above, the earliest age at which the Employer will allow a distribuuon from the
Employer Contribution Account, the Participant Portable Benefits Account, and/or the Participant
Contribution Account, if applicable, shall be age (not later than Normal Retire-
ment Age).
3. Notwithstanding Subsection (2) above, a distribution shall be made pursuant to Section 10.04 of the Plan,
De Minimis Accounts. Further, the Participant shall be entitled to request that his/her enure Nonforfeitable
Interest in his/her Account be transferred to another plan, pursuant to Section 10.03 of the Plan.
XIII. Loans are permitted under the Plan, as provided in Article XIV. N Yes ❑ No
XIV. 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.
XV. 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.
XVI. 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 & Trust.
XVII. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption Agreement
may result in disqualification of the Plan.
XVIII. 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 17tda
h`, of
June ,19 92
Accepted: MA RETIREMENT CORPORATION
By.
Title- Director of Finance & Budget Title:
Attest:
Attest:
ICMA RETIREMENT CORPORATION, CORPORATE HEADQUARTERS, 777 NORTH CAPITOL STREET NE, WASHINGTON, DC 20002-4240
6
001-91F