HomeMy WebLinkAboutCity Council - 6087 RESOLUTION NO. 6087
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH APPROVING AMENDMENT OF THE
EMPLOYEES DEFERRED COMPENSATION PLAN
WHEREAS, the City Council has heretofore adopted and
implemented an Employees Deferred Compensation Plan, and
Such plan provides, inter alia, that the City Council may
amend such plan and notify its employees of such amendment, and
Changes to the Internal Revenue Code commencing in 1978
mandate amendment to the Plan:
NOW, THEREFORE, BE IT RESOLVED that the revised City of
Huntington Beach Deferred Compensation Plan attached hereto be
adopted effective upon the first date IRC Section 457 was
applicable to such plans, and that each modification of IRC
Section 457 from its effective date to the present is
incorporated by reference in such plan as though fully set forth
in the plan. The former plan attached to Resolution No. 3698
shall be amended as attached.
PASSED AND ADOPTED by the City Council of the City of
Huntington Beach at a regular meeting held hereof on the 13th day
of November 1989 .
Mayor __�__—_------
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ATTEST: APPROVED AS TO FORM:
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City Clerk City Attorney /fl-y9
CsU9
REVIEWED AND APPROVED:
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City Administrator
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CITY OF HUNTINGTON BEACH
DEFERRED COMPENSATION PLAN
1 . TITLE. The title of this plan is the "Deferred
Compensation Plan of the City of Huntington Beach" (hereinafter
referred to as "Plan" ) .
2 . PURPOSE. The purpose of this Plan is to permit
individuals providing service to the City of Huntington Beach to
defer a portion of their compensation and to provide for
retirement , disability and death benefits . Corporations,
partnerships and business organizations other than sole
proprietorships shall not participate in the Plan.
3 . DEFINITION OF TERMS . For the purpose of this Plan, the
following words and phrases shall have the following meanings
ascribed to them:
a i"C_�t shall mean the City Huntington Beach.
(b) "Participant" shall mean an individual performing
services for the City who is eligible to defer compensation under
the Plan and who has elected to participate in the Plan.
(c) "Participation Acfreement" shall mean an agreement
executed and filed pursuant to Section IV of this Plan, in which
the individual elects to become a participant under the Plan.
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(d) "Compensation" shall mean the gross amount of salary,
wages or other cash payment owed by the City to an individual
providing services to the City.
(e) "Participation Year" shall mean the calendar year ,
January 1 through December 31 , except that in the initial year of
participation in the Plan, it shall mean the portion of the
calendar year remaining after the election to participate in the
Plan.
( f ) "Beneficiary„ shall mean any person, trust ,
corporation, or firm or any combination of the foregoing
designated by participant to receive benefits under the Plan.
Any such designation shall be revocable unless otherwise provided
in such instrument . If participant does not file a beneficiary
designation with the City, the beneficiary shall be deemed by
City to be the estate of such participant .
(g) "IRC Section_457" shall mean U.S.C . Title 26 , Section
457 as adopted and amended.
(h) "City Emioloyee" shall mean a classified permanent
employee, an elected official or a temporary employee of the
City.
( i ) "Independent Contractor" shall mean any natural person
providing services to the City as an individual who is not in an
employee-employer relationship with the City but whose agreement
with the City includes the specific provision permitting
participation in this deferred compensation plan.
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( j ) "Plan Administrator" shall mean the City' s Deputy City
Administrator/Administrative Services .
(k) "Individual" shall mean natural persons only.
4 . PARTICIPANTS IN THE PLAN.
(a) Election to Participate in_Plan: Any City employee or
independent contractor may elect to participate in the Plan and
defer payment of part of his compensation by executing a written
participation agreement and filing it with the City at any time.
Compensation may be deferred in any calendar month if an
agreement providing for such deferral was completed before the
right to such compensation has accrued. Participation agreements
shall remain in full force and effect until terminated.
(b) Termination of Participation Agreement _ Plan
participation may be voluntarily terminated by participant at any
time . In the case of participation through payroll deduction,
written notice of termination, signed by the participant , shall
be filed with the City at least thirty ( 30) days in advance of
the date the participant desires to terminate participation under
the Plan. Participant may elect to participate at a future time
by signing a participation agreement prior to commencement of
such future time period.
5 . DEFERRAL OF COMPENSATION. During each year in which an
individual participates in the Plan, the City shall not pay said
participant his full compensation, but shall defer such portion
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of his compensation as is specified by the participant in the
participation agreement . Compensation shall be deferred as
directed by participant over each pay period of the participant ' s
employment year . The minimum deferable amount of compensation
shall be as established by the Plan Administrator . Participants
with irregular receipt of compensation from the City; viz . ,
independent contractors, temporary employees, eligible contract
employees and other individuals with an irregular compensation
mode may defer compensation in any month prior to the first day
in which the right to such compensation accrues, subject to
provisions of IRC Section 457 .
6 . ADMINISTRATION. The Plan shall be administered by the
City through the Plan Administrator who shall be the City's
Deputy City Administrator/Administrative Services and under the
direction of the City Council . An investment advisory board
consisting of three plan participants may recommend to the City
suggested forms of investment , however, the function of this
advisory board is purely advisory and the Plan Administrator
shall have the sole and exclusive discretion in the investment of
Plan funds excepting as provided by IRC regulation.
(a) Permitted Investments : The Plan shall consist of three
types of investment programs and upon executing the participation
agreement an employee shall designate this deferred compensation
objective . Types of investment programs shall be limited to:
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( 1 ) Class A: Investments of a type where primary
emphasis is placed upon maximum security of principal and assured
rate of return.
( 2 ) Class B: Investments of a type affording an
opportunity for a greater rate of return and/or appreciation than
Class A but which carried less risk than Class C .
( 3) Class C : Investments of a type affording
employees a maximum rate of return and/or appreciation in value.
The specific investments included under Classes A, B, and C
shall be determined pursuant to 6 .A supra, at the sole discretion
of City, and City shall invest all deferred compensation funds as
in its sole judgment will best achieve participant 's objective.
(b) In_v_estment Accounts : The Plan Administrator shall
establish for each participant a separate investment account , in
order to provide a convenient method of 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 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 .
( c) P1_an Funds Asset of_City: 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 compensation also shall
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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 .
(d) No Trust Created: Neither the existence of the Plan
nor the investment account shall be deemed to create a trust and
the City is at all times the legal owner of the investment
account . Neither the existence of the Plan nor the investment
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account shall entitle any participant , the beneficiary of any
participant, or the creditor of any participant to a claim or
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lien against the assets of the investment account .
7 . MISCELLANEOUS CONDITIONS OF PLAN
(a) Status of Participants : Neither the establishment of
the Plan nor any modification 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 City except as herein provided;
and, in no event, shall the terms of employment relationship of
any participant to City be modified or in any way be affected
hereby.
(b) Prohibition Against Assignment : 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
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employee to sell , assign, transfer or encumber shall release City
from any and all further liability under this Plan.
( c) Designation of Beneficiaries : 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 .
(d) Governing Law: This Plan shall be construed,
administered, and enforced according to the laws of the State of
California and of the United States of America.
8 . AMENDMENT AND TERMINATION. The City may at any time
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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, amendment or termination or of a notice that it
ceases deferring compensation; provided, however, the City 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.
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
designated beneficiary, or estate all amounts credited to
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participant ' s book account subject, however, to the restrictions
imposed upon such distribution by the Internal Revenue Code and
the laws of the State .
9 . PERMITTED DEFERRAL AMOUNTS ALLOWED; OPTIONAL MAXIMUM
DEFERRAL; NORMAL DATE OF RETIREMENT. The maximum amount which
may be deferred under the Plan for the Participant 's tax year
shall not exceed the lesser of $7, 500 .00 or 33 1/3% of the
participant ' s includible compensation (as defined in IRC Section
457) for such year . For the last three years of provision of
service prior to the participant 's normal retirement date, the
allowable deferment may be increased to not to exceed $15,000. 00 .
The participant may elect an individual normal retirement date by
informing the City in writing not less than three ( 3) years prior
to such date of such election. The participant may select any
date as the designated normal retirement date so long as
participant ' s age at normal retirement is not less than 50 years
and no more than the maximum age allowed by IRC Section 457 .
Otherwise, the participant ' s normal retirement date is deemed by
the Internal Revenue Service to be the individual 's 65th
birthday.
10 . DISTRIBUTION OF BENEFITS. The balance of participant 's
account , including all deferred compensation and accretions
thereto shall be distributed to participant or beneficiary in
accordance with provisions of IRC Section 457 , and participants
may elect any allowed distribution option.
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Res. No, 6087
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, the duly appointed, qualified City
Clerk of the 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 at least a majority of all the members of said City Council
at a regular adjourned meeting thereof held on the 13th day
of November , 19 89 by the following vote:
AYES: Councilmembers:
Green MacAllister, Winchell
NOES: Councilmembers:
Bannister, Silva
ABSENT: Councilmembers:
Mays Erskine (out of room)
City Clerk and ex-officio Merk
of the City Council of the City
of Huntington Beach, California