HomeMy WebLinkAbout7698RESOLUTION NO. 7698
A RESOLUTION APPROVING ICMA RETIREMENT CORPORA-
TION PROTOTYPE MONEY PURCHASE PLAN AND TRUST
ADOPTION AGREEMENT AND AUTHORIZING THE PRESI-
DENT OF THE CITY COUNCIL TO EXECUTE SAME
WHEREAS, the City of Pueblo participates in the ICMA Retirement Corporation ( "ICMA ")
sponsored defined contribution money purchase plan ( "Plan") on behalf of its management
employees who have elected to be exempted from membership in the Public Employee Retirement
Association, and
WHEREAS, ICMA has caused the Plan to be amended and restated in the form of ICMA
Retirement Corporation Prototype Money Purchase Plan and Trust to be known as City of Pueblo
Money Purchase Plan to conform with applicable law and Internal Revenue Services regulations;
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
The ICMA Retirement Corporation Prototype Money Purchase Plan and Trust Adoption
Agreement establishing a money purchase plan and trust to be known as the City of Pueblo Money
Purchase Plan on behalf of the City's management employees who have elected to be exempted from
membership in the Public Employees Retirement Association, a copy of which is attached hereto
and incorporated herein, having been approved as to form by the City Attorney, is hereby approved.
The President of the City Council is authorized to execute the Adoption Agreement in the name of
the City and the City Clerk is directed to affix the seal of the City thereto and attest same.
INTRODUCED: September 11 , 1995
ATTEST:
* C" JZ.Is. Q.A
City Cler
By John Califano
Councilperson
APPROVED:
President of the City Council
lCMA Retirement Corporation
Prototype Money Purchase
Plan &Trust
Adoption Agreement
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ICMA RETIREMENT CORPORATION
PROTOTYPE MONEY PURCHASE PLAN & TRUST
ADOPTION AGREEMENT
#001
Account Number 109168
The Employer hereby establishes a Money Purchase Plan and Trust to be known as
CITY OF PUEBLO 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.
El 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:
CITY OF PUEBLO
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: 01M
IV. Plan Year will mean:
❑ The twelve (12) consecutive month period which coincides with the
limitation year. (See Section 6.05(i) of the Plan.)
121 The twelve (12) consecutive month period commencing on 01101 and each
anniversary thereof.
V. Normal Retirement Age shall be age 5M (not to exceed age 65).
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VI. ELIGIBILITY REQUIREMENTS:
1. 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 f
Public Safety Employees
General Employees
X Other (specify below)
MAN EMP WHO ELECTED TO BE EXEMPT IN PERA
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 NL.A.
(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 NIA (not to exceed age 21. Write N/A if no
minimum age is declared.)
VII. CONTRIBUTION PROVISIONS
1. The Employer shall contribute as follows (choose one, if applicable):
El Fixed Employer Contributions With or Without Mandatory Participant
Contributions.
The Employer shall contribute on behalf of each Participant 10.00 % of Earnings
or $ 000 for the Plan Year (subject to the limitations of Article VI of the Plan).
Each Participant is required to contribute 8M % of Earnings or $ flM 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.
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The Employer hereby elects to "pick up" the Mandatory /Required Participant
Contribution.
M 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 area °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 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 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 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 Employer contributions, 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):
% 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 including 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.
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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.
El Yes I ❑ No
3. Employer contributions and Participant contributions shall be contributed to the
Trust in accordance with the following payment schedule:
MONTHLY
VIII. EARNINGS
Earnings, as defined under Section 2.09 of the Plan, shall include:
(a) Overtime
El Yes ❑ No
(b) Bonuses
❑x Yes ❑ No
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) a participant or could possibly become a participant,
and /or (ii) maintains a welfare benefit fund (as defined in section 419(e) of the Code) or
an individual medical account (as defined in section 415(1)(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.)
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W
2. 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 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
XI
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
Comlileted
V .s in
Requirements **
Zero
100 %
No minimum
One
100 %
No minimum
Two
100 %
No minimum
Three
100 %
Not less than 20%
Four
100 %
Not less than 40%
Five
100 %
Not less than 60%
Six
100 %
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.)
Loans are permitted under the Plan, as provided in Article XIV:
❑ Yes
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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 11th day of September , 1995 .
EMPLOY R Accepted: ICMA RETIREMENT CORPORATION
gy. B .
Title: President of the Council
Attest:
City
Title: ze t Secre ry
Attes Iz
ICMA Retirement Corporation ❑ P.O. Box 96220 0 Washington, DC ❑ 20090 -6220 ❑ 1 -800- 326 -7272
001 -94
RECEIVED OCT 1 6 1995 6