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HomeMy WebLinkAboutCity Council - 3698 RESOLUTION N0 . 3698 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING AN EMPLOYEES' DEFERRED COMPENSATION PLAN AND AUTHORIZING ITS IMPLEMENTATION WHEREAS, the City of Huntington Beach, as an incentive to retain existing personnel and attract qualified personnel to employment with the City, is desirous of adopting and implementing a Deferred Compensation Plan enabling employees to defer a portion of their income pursuant to such plan, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach that the City of Huntington Beach Deferred Compensation Plan attached to this resolution, marked "Exhibit A" , and by reference incorporated herein, is hereby adopted. BE IT FURTHER RESOLVED that the Finance Director is author- ized to implement said plan; and the City of Huntington Beach consents to the plan and assumes the obligations to be performed on its part as set forth in said plan. BE IT FURTHER RESOLVED that the plan shall be operative immediately, but shall apply only to compensation earned by a participating employee subsequent to the date of filing a written declaration to participate , and the City consents to the participation of any employee of the City , such partici- pation to be in accordance with the "Employee 's Participation Agreement . " BE IT FURTHER RESOLVED that at the end of each calendar year the City shall prepare a financial statement of the amount 1. of employee compensation deferred pursuant to said plan and the types of investments held under such plan. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 4th day of June, 1973 . M or ATTEST: • arc%/ �i City Clerk APPROVE? AS TO FORM: e CITy Atto 2. CITY OF HUNTINGTON BEACH DEFERRED COMPENSATION PLAN I TITLE The title of this plan is the "Deferred Compensation Plan of the City of Huntington Beach" (hereinafter referred to as "Plan") . II PURPOSE The purpose of this Plan is to permit employees of the City of Huntington Beach to defer a portion of their compensation and to provide for retirement, disability and death benefits . III DEFINITIONS For purposes of this Plan, the following words and phrases 1 shall have the following meanings ascribed to them: 3 .1 . "City" shall mean the City of Huntington Beach . 3 . 2 . "Employee" shall mean a permanent employee of the City of Huntington Beach who executes an agreement to defer a portion of his compensation pursuant to this Plan. 3 . 3 • "Participant" shall mean an employee who has elected to participate in the Plan. 1. 3 6 g a i7-A A ed CITY OF HUNTINGTON BEACH REFERRED COMPENSATION PLAN I TITLE The title of this plan is the "Deferred Compensation Plan of the City of Huntington Beach" (hereinafter referred to as "Plan") II PURPOSE The purpose of this Plan is to permit employees of the City of Huntington Beach to defer a portion of their compensation and to provide for retirement , disability and death benefits . ' III DEFINITIONS .; For purposes of this Plan, the following wards and phrases shall have the following meanings ascribed to them: 3.1. "City" shall mean the City of Huntington Beach . 3.2. "Employee" shall mean a permanent employee of the City of Huntington Beach who executes an agreement to defer a portion of his compensation pursuant to this Plan. 3. 3 "Partici2ant" shall mean an employee who has elected to participate in the Plan. 1. 3 . 4 . "Participation agreement" shall mean an agreement executed and filed by an employee pursuant to Section IV of this Plan, in which the employee elects to become a partici- pant under the Plan. 3 . 5 . "Compensation" shall mean the total of all amounts payable by the City to or for the benefit of an employee (if he were not a participant in the Plan) for actual services during the period that he is a participant under the Plan. 3 . 6 . "Employment Year" shall mean the calendar year, January 1 through December 31 , except that in the initial year an employee participates in the Plan, it shall mean the portion of the calendar year remaining after his election to participate in the Plan . 3 .7 . "Disability" means the inability of the participant to engage in his usual occupation by reason of a medically determinable physical or mental impairment , as determined by the City on the basis of advice from a physician or physicians . 3 . 8 . "Beneficiary" shall mean any person, trust , corpora- tion, or firm or any combination of the foregoing designated by employee to receive benefits under the Plan. Any such designation shall be revocable unless otherwise provided in such instrument . If employee does not file a beneficiary designation with the City, the beneficiary shall be the estate of such employee . IV PARTICIPANT IN THE PLAN Election to Participate in Plan: 4 . 1 Each employee may elect to become a participant of the 2 . Plan and defer payment of part of his compensation by executing a written participation agreement and filing it with the City : (a) no later than the day preceding commence- ment of any employment year; or (b ) no later than thirty ( 30) days after the Plan is established; or (c) no later than thirty ( 30) days after commenc- ing employment with the City . Duration of Participation Agreement : 4 . 2 . A participation agreement shall be effective for the first employment year following its execution and filing except when it is executed and filed pursuant to Section 4 . 1 (b) or Section 4 . 1 (c) in which case it shall be effective for the re- maining portion of the employment year following its execution and filing. A participation agreement shall continue from year to year and remain in full force and effect unless terminated as provided in Section 4 . 3 . Termination of Participant Agreement : 4 . 3 Plan participation may be voluntarily terminated by participant effective upon expiration of any employment year during which the participant has elected to participate in the Plan. Written notice of termination, signed by the participant , must be filed with the City at least ten (10) days in advance of the commencement of the employment year in which the partici- pant desires to terminate participation under the Plan. Where participant has terminated his participation agreement , he cannot elect to again participate in the Plan for the employment year 3. immediately succeeding termination. However, participant may elect to participate in subsequent employment years by signing a participation agreement prior to commencement of such future employment year as provided in Section 4 .1 (a) . Amounts payable to an employee upon termination of his participation agreement under this Plan shall be payable only pursuant to Section VII of this Plana V DEFERRAL OF COMPENSATION During each employment year in which the employee is a participant in the Plan, the City shall not pay said employee his full compensation, but shall defer such portion of his compensation as is specified by the employee in the participation agreement . Compensation shall be deferred in equal amounts over each pay period of the employee 's employment year. Minimum deferrable amount of compensation shall be Three Hundred Dollars ($300 .00) per calendar year with appropriate initial year apportionment under Section 4 .1 (b) and Section 4 . 1 (c) . VI ADMINISTRATION OF PLAN Administration by City : 6 . 1 The Plan shall be administered by the City through the City ' s Finance Director under the direction of the City Council . An investment advisory board consisting of three designated members of the Management Employees ' Organization may recommend 4 . to. City suggested forms of investment, however, the function of this advisory board is purely advisory and the City shall have the sole and exclusive discretion in the investment of Plan funds . Types of Investments : 6 . 2 The Plan shall consist of three types of investment programs and upon executing the participation agreement an em- ployee shall designate this deferred compensation objective. Types of investment programs shall be limited to: (a) Class A: Investments of a type where primary emphasis is placed upon maximum security of princi- pal and assured rate of return. (b ) Class B: Investments of a type affording an opportunity for a greater rate of return and/or appreciation than Class A but which carries less risk than Class C . (c) Class C : Investments of a type affording em- ployees a maximum rate of return and/or apprecia- tion in value . The specific investments included under Classes A, B and C shall be determined pursuant to 6 . 1 supra, at the sole discretion of City, and City shall invest all deferred compensation funds as in its sole judgment will best achieve the employees ' ob- jective . Investment Accounts : 6 .3 . The City shall establish for each participant an in- vestment account , in order to provide a convenient method of 5. measuring its obligations to the participant under the Plan. The City shall invest in such account amounts equal to the compensation deferred by the participant under this Plan. The assets of the account shall be invested pursuant to 6 . 2. in such manner as the laws of the State of California may allow. The City shall maintain a separate book account for each participant to which it shall credit an amount equal to the deferred income of the participant . The participant ' s book account shall further be credited yearly with earnings , gains or losses applicable thereto, which have been earned by the participant ' s investment account during the preceding year. Plan Funds Asset of City : 6 . 4 . All amounts of deferred compensation, whether or not invested by the City, shall at all times be and remain an asset of the City . Any and all dividends , capital gains distributions, interest or other income payable on any of the city ' s investment of deferred compenstion also shall be an asset of the City . The City shall have the sole right to vote any shares of stock which it may acquire by such investment . The investment account shall at all times remain a part of the general assets of the City and shall remain available for the payment of City debts . Neither the existence of the Plan nor the investment account shall be deemed to create a trust and the City shall at all times be the legal owner of the investment account . Neither the existence of the Plan nor the investment account shall entitle any partici- pant, the beneficiary of any participant, or the creditor of any participant to a claim or lien against the assets of the invest- 6. ment account . The participant and his beneficiary shall have only the right to receive the benefits payable under the Plan. VII DISTRIBUTION OF BENEFITS The following are the exclusive methods of distribution of benefits under the Plan. Termination of Services : 7 . 1 . Upon the termination of employment , other than by the death of participant , the City shall pay to the participant one of the following benefits , the selection of the type of benefit to be at the sole discretion of the City : (a) A lump sum payment of the full amount of benefits credited to the participant 's book account . (b) Consecutive monthly installments over a specified period of time, not to exceed fifteen (15) years from the date distribution is commenced; pro- vided further, no monthly payment shall be less than Fifty Dollars ($50 . 00) per month. ( c) In monthly installments over a time interval not greater than the life expectancy of participant; provided further, no monthly payment shall be less than Fifty Dollars ($50 . 00) . Life expectancy shall be determined by the City on the date of the initial installment distribution payment . Disability : 7. 2 . In the event of termination of employment by reason 7. of disability, distribution of benefits shall be as provided in Section 7. 1. supra. Death Prior to Termination of Services : 7 . 3 . In the event of the death of the participant while still an employee of City, the City shall pay one of the fol- lowing benefits to the participant ' s beneficiary, the selection of the benefits to be at the sole discretion of the City : (a) A lump sum payment of the full amount of benefits credited to the participant 's book account . (b) In consecutive monthly installments over a time interval not to exceed fifteen (15) years from the date distribution is commenced; provided further, no monthly payment shall be less than Fifty Dollars ($50 . 00) per month. Death Subsequent to Termination of Employment : 7 . 4 . In the event of death of participant subsequent to termination of services with the City, the City shall pay to participant ' s beneficiary, one of the following benefits, the selection of the benefit to be at the sole discretion of the City : (a) A lump sum payment of the remaining balance of benefits credited to the participant's book account . (b) In consecutive monthly installments over a time interval not to exceed fifteen (15) years from the date distribution is commenced; provided further, no monthly payment shall be less than Fifty Dollars ($50 .00) per month. 8. VIII MISCELLANEOUS CONDITIONS OF PLAN Status of Participants : 8 . 1. Neither the establishment of the Plan nor any modifi- cation thereof, nor the establishment of any book account nor the payment of any benefits , shall be construed as giving to any participant or any other person any legal or equitable right against the employer except as herein provided; and, in no event, shall the terms of employment of any employee or participant be modified or in any way be affected hereby . Nonassignability : 8. 2 . The interest of a participant under the Plan shall not be sold, assigned, transferred or encumbered in whole or in part directly or by operation of law or otherwise, in any manner; and any attempt by employee to sell, assign, transfer or encumber shall release City from any and all further liability under this Plan. Designation of Beneficiaries : 8 . 3 . Each participant shall have the right , by written notice to the City, to designate the beneficiary to receive any benefit to which said participant may be entitled in the event of his death prior to the complete distribution of benefits . If no such designation is in effect at the time of participant ' s death, the beneficiary shall be the estate of participant . Governing Law: 8 . 4 . This Plan shall be construed, administered, and enforced according to the laws of the State of California. 9. Ix AMENDMENT AND TERMINATION 9 .1 . The City may at any time and from time to time modify , amend, or terminate the Plan in whole or in part or cease deferring compensation pursuant to the Plan, by delivering to each participant a written copy of such modification, amend- ment or termination or of a notice that it ceases deferring com- pensation; provided, however, the employer shall not have the right to reduce or affect the value of any participant ' s book account or any rights accrued under the Plan prior to such modification, amendment , termination or cessation. Discharge of City ' s Obligation under Plan: 9 . 2 . The City may at any time discharge in full its obligation under the Plan to any participant by distributing to any participant ., or, following the death of a participant , to his beneficiary , all amounts credited to participant ' s book account . F 10 . Res. No. 3698 STATE OF CAIAFORNT.A ) COUNTY OF ORANGE ) SS: CITY OF HUNTINCTON BEACH ) I, ALICIA M. WENTWORTH, the duly appointed, qualified City Clerk ofthe City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of more than a majority of all the members of said City Council at a regular meeting thereof held on the 4 th day of June 19 73 by the following vote: AYES: Councilmen: Shipley, Bartlett, Gibbs, Green, Coen, Duke, Matney NOES: Councilmen: None ABSENT: Councilmen: None City Clerk and ex-officia Ci-6rk- of the City Council of the City, of Huntington Beach, California