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CITY COUNCIL RESOLUTION NO._633B
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH, APPROVING PARTICIPATION IN
PUBLIC AGENCY RETIREMENT SYSTEM (PARS)
WHEREAS, it is determined to be in the best interest of the City of Huntington
Beach and its employees to provide a qualified retirement system to all part—time
employees , thereby meeting the requirements of Section 11332 of the Social Security
Act; and
WHEREAS, an alternative qualified defined contribution pension plan entitled Public
Agency Retirement System (PARS) is designed for California Public Agencies; and
WHEREAS, the Public Agency Retirement System (PARS) will qualify as a retirement
plan in place of Social Security coverage.
NOW, THEREFORE, the City Council of the City of Huntington Beach, DOES HEREBY
RESOLVE, DETERMINE, AND ORDER as follows:
SECTION 1 . Adoption of the PARS pension plan effective January 1 , 1991 ; and
SECTION 2. The Deputy City Administrator/Chief of Administrative Services is
hereby appointed as the Plan Administrator; and
SECTION 3. The Plan Administrator is hereby authorized to execute an adoption
agreement and administration agreement and other necessary actions
to maintain participation and compliance with Section 11332 of the
Social Security Act and the relevant regulations issued or as may
be issued.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at an
adjourned regular meeting held on the 16th day of J),-cember 1991 .
MAYOR lzQ/F/
ATTESTED: APPROVED AS TO FORM:
CITY CLERK CITY ATTO Y
REVIEWED IAT
CITY ADMINI TOR DEP TY.-0 Y DMINIST TOR
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P A R
Public Agency Retirement System
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PLAN DOCUMENT
City of Huntington Beach
Copyright c 1991 PHASE 11 SYSTEMS. All rights reserved. Reproduction in part or whole is prohibited.
INTRODUCTION
The Public Agency Retirement System Trust has adopted the following Defined Contribution Plan on
behalf of affiliated government agencies for the benefit of their employees. It is intended that this Plan
meet all requirements for qualification as a profit--sharing plan set forth in the Code as amended from
time to time, for governmental plans. If any provision of this flan is subject to more than one
interpretation, such ambiguity shall be resolved in favor of that interpretation which is consistent with
this Plan being so qualified.
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TABLE OF CONTENTS
ARTICLE
I DEFINITIONS 3
II ELIGIBILITY REQUIREMENTS 7
III CONTRIBUTIONS 8
IV INVESTMENT OF CONTRIBUTIONS 9
V VESTING 10
VI DISTRIBUTIONS 11
VII TERMINATION OF EMPLOYMENT 13
VIII DEATH BENEFITS 14
IX ADMINISTRATION 15
X AMENDMENT AND DISCONTINUANCE OF THE PLAN 16
3G MISCELLANEOUS 17
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ARTICLE I
DEFINITIONS
1.01 "Administrator" means the Employer.
1.02 "Adoption Agreement" means the Public Agency Retirement System (PARS)Adoption Agreement.
1.03 "Beneficiary" means any person or persons, other than the Employer or the Trustee, designated by a
Participant to receive any distributions under this Plan which may be due upon the Participant's
death. The Beneficiary for a married Participant shall be the Spouse of the Participant and may not
be changed to someone other than the Spouse unless Spousal Consent is provided.
1.04 "Code" means the Internal Revenue Code of 1986 and amendments thereto.
1.05 (a) "Compensation" means all compensation for the Plan Year paid or payable in cash by the
Employer for personal services to an Eligible Employee. This definition of"Compensation"
shall be subject to the further provisions of this Article, as well as the additional terms, if
any, specified by the Employer in the Adoption Agreement.
(b) "Compensation" shall not include any amounts paid or payable by reason of services
performed(1)after the date an Employee ceases to be a Participant, or (2)prior to the date
an Employee becomes a Participant.
(c) "Compensation" shall not include, with respect to any Employee, in any Plan Year(or such
other applicable period specifically designated in the Plan), any compensation in excess of
$200,000 or such other amount established by the Secretary of Treasury in accordance with
Section 401(a)(17)of the Code. In addition, Compensation shall not include any amounts
contributed by an Employer, for or on account of Employees, under this Plan or under any
other employee benefit plan qualified under the provisions of Section 401(a) of the Code.
(d) For purposes of the Highly Compensated Employee and Family Member definition:
(1) Compensation shall mean total compensation as defined herein without regard to contri-
butions made under Sections 125, 402(a)(8), 402(h)(1)(B)and, in the case of Employer
Contributions made pursuant to a salary reduction agreement, 403(b)of the Code.
(2) Compensation paid to a Participant for any Plan Year shall include all Compensation for
that Plan Year paid to any Family Member (hereafter defined)who is a Participant in
this Plan during such Plan Year.
(3) "Family Member" shall mean an Employee who is, on any one day of the Plan Year, a
spouse, lineal ascendant, lineal descendant, or a spouse of an ascendant or descendant,
including a legally adopted individual, of an individual who during the Plan Year was:
(A) an active or former Employee and a five percent(5%)owner within the meaning of
Section 416(i)(1)(B)(i)of the Code and the regulations thereunder, or
(B) one of the ten most highly-paid Highly Compensated Employees.
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1.06 "Computation Period" means the Plan Year.
1.07 "Determination Date" means with respect to any Plan Year (a) the last day of the preceding Plan
Year, or(b) in the case of the first Plan Year of the Plan, the last day of such Plan Year.
1.08 "Effective Date" means the effective date of this Plan as stated in the Adoption Agreement.
1.09 "Eligible Employee" means any Employee who, at any time during which the Employer
maintains this PIan, is not accruing a benefit under another Retirement System provided or
maintained by the Employer. This definition of"Eligible Employee" shall be subject to the
additional terms, if any, specified by the Employer in the Adoption Agreement.
1.10 "Employee" means any person employed by the Employer on or after the Effective Date of this
Plan.
1.11 *Employee After Tax Contributions" means Employee Contributions which are not Pick Up
Contributions.
1.12 "Employee Contributions" means contributions made to the Trust by the Participant, or made to
the Trust by the Employer on behalf of the Participant as Pick Up Contributions.
1.13 "Employee Contribution Account" means the value of the Participant's interest in this Plan which
is attributable to Employee Contributions and Employee After Tax Contributions, determined as of
a specified Valuation Date.
1.14 "Employer" means the Public Agency which by means of executing the Adoption Agreement has
adopted this PIan subject to the terms of the Trust.
1.15 "Employer Contributions" means contributions made to the Trust by the Employer on behalf of
the Participant which are not Pick Up Contributions.
1.16 "Employer Contribution Account' means the value of the Participant's interest in this Plan which
is attributable to Employer Contributions, determined as of a specified Valuation Date.
1.17 "Hour of Service' means:
(a) (1) Each hour for which an Employee is paid, or entitled to payment, for the performance of
duties for the Employer during an applicable computation period.
(b) (1) Each hour for which an Employee is paid, or entitled to payment, by the Employer
(irrespective of whether the employment relationship has terminated)on account of a
period of time during which no duties are performed due to vacation, holiday, illness,
disability, layoff,jury duty, military duty, or a paid leave of absence during the
applicable computation period.
(2) For purposes of paragraph (1)above a leave of absence shall include the absence of an
Employee due to pregnancy of the Employee, birth of a child of the Employee, placement
of a child with the Employee in connection with the adoption of such child by the Employee
or the caring for such child for a period beginning immediately following such birth or
placement. If an Employee has already been credited with a sufficient number of Hours of
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Service during the computation period in which a leave of absence occurs as described in
this paragraph(2) in order to avoid a break in service, then such Hours of Service that
would have been credited pursuant to this paragraph(2)will be credited to the next
immediate computation period.
If the normal number of Hours of Service cannot be determined for an Employee who is
on sick leave of absence as described in this paragraph(2)then eight Hours of Service for
each day while the Employee is absent shall be used.
(3) For purposes of this paragraph (b)no more than 100 Hours of Service will be credited to
an Employee during any single Computation Period. The crediting of Hours of Service
under paragraph (2)will be solely for the purpose of determining whether the Employee
has incurred a break in service.
(c) Each hour for which back pay, irrespective of mitigation of damages, is either awarded or
agreed to by the Employer.
(d) Solely for purposes of determining whether a break in service for participation and vesting
purposes has occurred in a computation period, an individual who is absent from work for
maternity or paternity reasons shall receive credit for the hours of service which would
otherwise have been credited to such individual but for such absence, or in any case in
which such hours cannot be determined, eight(8)hours of service per day of such absence.
For purposes of this paragraph, an absence from work for maternity or paternity reasons
means an absence(1)by reason of the pregnancy of the individual, (2)by reason of the birth
of a child of the individual, (3)by reason of the placement of a child with the individual in
connection with the adoption of such child by such individual, or (4) for purposes of caring
for such child for a period beginning immediately following such birth or placement. The
hours of service credited under this paragraph shall be credited(1)is the computation period
in which the absence begins if the crediting is necessary to prevent a break in service in that
period, or(2) in all other cases, in the following computation period.
1.18 "Insurer" means any legal reserve life insurance company licensed to do business in the State
of California.
1.19 'Inactive Participant" means a Participant who is no longer eligible to participate because he is no
longer in the class of Employees eligible to participate under the provisions of Article H.
1.20 "Normal Retirement Age" means sixty(60)years of age.
1.21 "Normal Retirement Date" means the first of the month coincident with or next following the date
on which the Participant attains Normal Retirement Age.
1.22 'Participant' means an Eligible Employee who has received Compensation from.the Employer.
1.23 "PERS' means the California Public Employees Retirement System.
1.24 "Permanent and Total Disability" means presumably permanent incapacity in accordance with the
definition used by the Federal Social Security Act occurring after the Effective Date and resulting
in a Participant being unable to engage in any regular gainful employment or occupation by reason
of any medically demonstrable physical or mental condition. Such Disability shall be deemed to
exist only when written application has been filed with the Employer by or on behalf of such
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Participant and when such Disability is certified to the Employer by a licensed physician approved
by the Employer. Such Disability will not be considered established unless it has continued for a
period of not less than six (6)consecutive months.
1.25 "Pick Up Contributions" means Employee Contributions made by the Employer on behalf of the
Participant pursuant to Section 414(h) of the Code. Pick Up Contributions shall not, under any
circumstances, be paid to the Participant or be directed by the Participant to be paid for any
purpose except as Pick Up Contributions to this Plan. The Employer way make Pick Up Contri-
butions through a reduction in salary, an offset against future salary increases, or a combination of
the two.
1.26 'Plan" means the Public Agency Retirement System(PARS), a governmental plan as it may from
time to time be amended.
1.27 "Plan Year' means a period of twelve (12)consecutive months as stated in the Adoption Agreement.
1.28 "Public Agency" means a State, a political subdivision of a State, and any agency or instrumentality
of a State or political subdivision of a State.
1.29 'Retirement System" means any plan which meets the requirements for a retirement system under
Section 3121(b)(7)(F)of the Code and regulations thereunder.
1.30 "Spousal Consent" means a written election signed by the Spouse to have someone other than the
Spouse considered the Participant's Beneficiary in which case such consent must acknowledge the
non-Spouse Beneficiary. Such written election shall be witnessed by a Plan representative
designated by the Administrator or a notary public and shall acknowledge the effect of such election
on the Spouse.
1.31 "Spouse' means the person to whom the Participant is married as of the earlier of the date on
which the Participant's benefits commence or the date of the Participant's death. To the extent
provided in any qualified domestic relations order a Participant's former Spouse may be treated
as the surviving Spouse for purposes of this Plan.
1.33 "STRS" means the California State Teachers Retirement System.
1.34 "Trust" means the Public Agency Retirement System(PARS)Trust
1.35 "Trustee" means the trustee of the Trust.
1.36 "Valuation Date" means the last day of the Plan Year.
1.37 "Vest" means to have a nonforfeitable right to the Employer Contribution Account and/or the
Employee Contribution Account.
1.38 "Year of Service" means a period of twelve(12)consecutive months coinciding with the Plan
Year.
1.39 As used in this Plan, the masculine shall include feminine and the singular shall include the plural,
where applicable.
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ARTICLE H
ELIGIBILITY REQUIREMENTS FOR PARTICIPATION
2.1 Eligibility requirements are determined as stated in the Adoption Agreement.
2.2 For purposes of determining Years of Service and Breaks in Service for purposes of eligibility,
the initial eligibility computation period is based on requirements stated in the Adoption
Agreement which shall mean a period of twelve(12)months commencing on the date on which
the Employee first performs an Hour of Service. The second eligibility Computation Period
shall be the Plan Year which begins within the first eligibility Computation Period,and the third
and subsequent eligibility Computation Periods shall be subsequent Plan Years.
2.3 An Eligible Employee will become a Participant immediately upon being hired.
2.4 A Participant of this Plan shall cease to be a Participant for the purpose of accruing further
participation credits on the date on which he becomes eligible for another Retirement System, as
defined by IRS Section 3121(b)(7)(F) the date employment is terminated because of permanent and
total disability, the date on which death occurs, the date of his retirement, or the date of his
termination for any other reason.
2.5 (a) In the event a Participant is no leager a member of the eligible class of Employees as
provided for in Section 2.1 above and the Adoption Agreement, and becomes ineligible to
participate, such Employee will participate immediately upon returning to the eligible class
of Employees.
(b) In the event an Employee who is not a member of the eligible class of Employees becomes a
member of the eligible class, such Employee will participate immediately if such Employee
has satisfied the requirements of Section 2.1 and the Adoption Agreement.
2.6 A Participant who is no longer eligible to participate because he is no longer in the class of
eligible employees, but who has not terminated employment with the Employer shall become an
Inactive Participant and shall remain such for twenty-four(24)months after which his interest in
the Plan will be distributed to him.
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ARTICLE III
CONTRIBUTIONS
3.1 (a) For each month that an Employee remains a Participant under this Plan, the Employer is
responsible for and shall make Employer Contributions to the Trust hereunder which shall be
credited to the Participant's Employer Contributions Account. The amount of the Employer
Contributions to be made for any particular month and with respect to any particular
Participant shall be as stated in the Adoption Agreement.
(b) For each month that an Employee remains a Participant under this Plan, the Employee is respon-
sible for and shall make Employee Contributions to the Trust hereunder which shall be credited
to the Participant's Employee Contributions Account. The amount, if any, of the Employee
Contributions to be made for any particular month and with respect to any particular Participant
shall be as stated in the Adoption Agreement. The employee contribution shall be subject to
IRC Section 414 (h) "before tax" employer pickup, if provided for in the Adoption Agreement.
3.2 The Employer may make contributions to the Trust hereunder sufficient to defray the expenses
of administering this Plan, including any expense charges or fees of the Insurer under the group
annuity contract. In the event of the failure of the Employer to pay such expenses, they shall be
charged against the Participants' Employer Contribution Accounts and Employee Contribution
Accounts as specified in the Adoption Agreement.
3.3 'Annual Additions" means for any Plan Year the sum of the following amounts credited to a
Participant's accounts in all qualified defined contribution plans maintained by the Employer:
(a) Employer Contributions
(b) EmpIoyee Contributions
(c) Forfeitures
Solely for the purposes of this paragraph, the Total Compensation for a totally disabled(within the
meaning of Section 22(e)of the Code)participant of a defined contribution plan maintained by the
Employer is the compensation which the participant would have received for the year if the participant
had been paid at the rate of compensation paid immediately before becoming permanently and totally
disabled; provided such imputed compensation may be taken into account only if the member is not
an officer, an owner, or a highly compensated employee, and only if contributions to the defined
contribution plan are nonforfeitabie when made. In addition, amounts allocated after March 31,
1994 to an individual medical account, as defined in Section 415(1)(1)of the Code, which are part of
a defined benefit plan maintained by the Employer, and amounts derived from contributions paid or
accrued after December 31, 1985, in taxable years ending after such date, which are attributable to
post--retirement medical benefits allocated to the separatq account of a key employee, 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 an Employer, shall also be treated as Annual Additions.
3.4 Notwithstanding anything to the contrary contained in this Plan, the Annual Additions to a
Participant's account for any Plan Year shall not exceed the lesser of the Defined Contribution
Dollar Limitation (currently $30,000) for the Plan Year or twenty-five percent(25`Xo)of the
Participant's Total Compensation for the Plan Year. The percentage limitation of the preceding
sentence shall not apply to any contributions for medical benefits (within the meaning of Section
419A(f)(2) of the Code)after separation from service which is otherwise treated as an Annual
Addition under Section 415(l)(1)of the Code.
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ARTICLE IV
,INVESTMENT OF CONTRIBUTIONS
Valuation of Accounts
4.1 For the purpose of funding this Plan, the Employer will provide the Trustee with written
direction on how to invest assets consistent with this Article IV. Alternatively, at the option
of the Employer, and with the written consent of the Trustee the Employer may delegate to the
Trustee the authority to determine how the assets of the Plan will be invested, consistent with
the terms of this Plan and accompanying Trust.
4.2 The Trustee may invest some or all of the contributions in an investment contract issued by an
insurance company licensed to do business in California with a rating of A+or better awarded
by Standard and Poor's Corporation's Insurer Solvency Review, or in any fund whose principal
is guaranteed by the Federal Deposit Insurance Corporation. Such investment to be made shall
be made at the direction of the Employer, or at the discretion of the Trustee if a valid delegation
of investment decision has been provided to the Trustee by the Employer pursuant to Section 4.1.
4.3 Any group investment contract shall provide for separate accounting of each Participant's Employer
Contribution Account and Employee Contribution Account.
4.4 The value of a Participant's Employer Contribution Account and Employee Contribution
Account shall be determined at least annually on a date herein referred to as a Valuation Date.
As of each Valuation Date the trustee shall determine the amount of interest adjustment credited
to the total of all assets held-for Employer Contribution Accounts and Employee Contribution
Accounts during the period since the preceding Valuation Date. The total interest adjustment
shall be allocated among all of the active individual Participant and Inactive Participant accounts
within each such classification as of the current Valuation Date. Not less frequently than
annually, the Employer shall notify each Participant of the value of his Employer Contribution
Account and Employee Contribution Account. All account values will be listed at book value
unless the Participant requests a listing of the current fair market value of such Account.
4.5 Contributions to the Trust Fund in an amount, and for a period, which are reasonable in the
discretion of the Trustee, shall be deposited in an interest-bearing account, which may be an interest
bearing account of the Trustee.
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ARTICLE V
VESTING
5.1 (a) Each Participant shall be Vested in his Employer Contribution Account as provided in the
Adoption Agreement.
(b) Each Pa rticipant-shall be one hundred percent(100%) Vested in his Employee Contribution
Account at all times.
5.2 Any Participant who terminates his employment with the Employer prior to his Normal
Retirement Date and who does not meet the requirements under Section 5.1(a)and the Adoption
Agreement above shall lose all rights to the balance of his Employer Contributions Account
accrued prior to such date.
5.3 No change to a Vesting Schedule contained in this Article V and the Adoption Agreement shall
deprive a Participant of his nonforfeitabie right to his Employer Contributions Account prior to
the adoption of the change. If the Vesting Schedule of this Plan is amended, each Participant
with at least five (5)Years of Service with the Employer prior to the adoption of the change,
may elect within a reasonable time after the adoption of the change to have his nonforfeitable
percentage computed under the Plan without regard to the change.
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ARTICLE VI
DISTRIBUTIONS
6.1 A Participant who terminates his employment by reason of death, the attainment of Normal
Retirement Date or Permanent and Total Disability shall be entitled to one hundred percent
(100%) of the sum of his Employer Contribution Account and his Employee Contribution
Account, valued as of the Valuation Date coincident with or next following the actual date of
distribution. The sum to which such a Participant is entitled shall be distributed in accordance
with the further provisions of this Article.
6.2 In the event that the termination of a Participant is caused by his death, his Beneficiary shall be
paid his entire benefit in the Plan in one lump sum.
6.3 If the sum to which the Participant is entitled is less than$3,500, it shall be distributed to the
Participant as a single sum. If the sum to which a Participant is entitled is$3,500 or greater it
will also be distributed in the form of a lump sum, but such distribution may not be distributed
to the Participant prior to his Normal Retirement Date without his consent.
6.4 A Participant may continue in employment beyond his Normal Retirement Date to a deferred
retirement date which may be the first day of any month subsequent to his normal Retirement
Date. A Participant who terminates his service on or after his deferred retirement date shall be
entitled to one hundred percent(100%)of the sum of his Employer Contribution Account and his
Employee Contribution Account, revalued as of the Valuation Date coincident with or next
following the actual date of distribution. The Account shall be distributed in accordance with
the further provisions of this Article.
6.5 The interest in the Plan of an Inactive Participant shall be distributed to him at the end of a.
period of 24 (twenty four) months during which he has received no contributions to his accounts
in this Plan.
6.6 An Employee who is a Participant in this Plan will have his entire interest in this Plan distributed in
accordance with.Section 401(a)(9) of the Code. A Participant's entire interest in this Plan will be:
(a) Distributed commencing not later than the required beginning date (in accordance with
Internal Revenue Service regulations)and must be made over one of the following periods
(or a combination thereof):
(1) the life of the Participant,
(2) the lives of the Participant and a designated Beneficiary,
(3) a period not extending beyond the life expectancy of the Participant, or
(4) a period not extending beyond the life expectancy of the Participant and a designated
Beneficiary.
(b) Distributed over a period specified in(a) (3)or(4)above, or over a period not extending
beyond the life expectancy of the designated Beneficiary.
(c) Except as provided below, the required beginning date for purposes of this Section shall be the
April 1st of the calendar year following the later of
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(1) the calendar year in which the Participant attains age 70 1/2 or,
(2).the calendar year in which the Participant retires.
(d) For purposes of this Article V1, life expectancy of the Participant and life expectancy of the
Participant and designated Beneficiary will be computed using the return multiples contained
in Section 1.72-9 of the Income Tax Regulations. A Participant's life expectancy (and his
Spouse's life expectancy) may not be recalculated.
(e) Distribution of a Participant's interest in this Plan will be made in accordance with Section
401(a)(9)of the Code and the provisions of such Code section will supersede any provision in
this Plan which may be inconsistent with such Code section.
(f) If distribution is considered to have commenced in accordance with the Regulations before
the Participant's death, the remaining interest will be distributed at least as rapidly as under
the method of distribution being used as of the date of the Participant's death.
6.7 Distributions made to a Participant's designated Beneficiary under this Plan shall be incidental to
the primary purpose of providing benefits to Participants and such distributions will be made in
accordance with Section 401(a)(9)of the Code.
6.8 Anything in this Plan to the contrary notwithstanding, the Participant shall not have the right to
elect to have all or part of his interest in this Plan,which would otherwise become available to
him during his lifetime,paid only to his Beneficiary after his death.
6.9 .. In no event shall the annuity commencement date of a Participant who becomes entitled to benefits
under this Plan be later than 60th day after the close of the Plan year in which the latest of the
following events occurs:
(a) The Participant reaches his Normal Retirement Date;
(b) The Participant qualifies for Permanent and Total Disability;
(c) The Participant terminates employment with the Employer;
Notwithstanding the above, a Participant may make written application to the Administrator for a
deferred annuity commencement date which may be the first day of any month subsequent to the
latest date specified in(a), (b), or (c)above but in no event will such date be later than the
required beginning date specified in this Article.
6.10 A Participant who becomes eligible for another retirement system as defined by 1RC Section
3121(b)(7)(F)or Social Security provided by his employer but does not terminate employment
with the Employer shall become an Inactive Participant.
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ARTICLE V1I
TERMINATION OF EMPLOYMENT
7.1 A Participant who terminates his employment by reason of death, the attainment of Normal
Retirement Date or Permanent and Total Disability shall be entitled to one hundred percent
(100`Yo)of the sum of his Employer Contribution Account and his Employee Contribution
Account, valued as of the Valuation Date coincident with or next following the actual date of
distribution. The sum to which such a Participant is entitled shall be distributed in accordance
with the further provisions of this Article.
7.2 Upon the Participant's termination of employment with the Employer his Vested interest in this
Plan shall be determined in accordance with Article V of this Plan.
7.3 (a) If upon the Participant's termination of employment his Vested interest in this Plan is less
than$3,500, it shall be distributed immediately to the Participant as a single sum. If the sum
to which a Participant is entitled is $3,500 or greater it will also be distributed in the form of
a lump sum, but such distribution may not be distributed to the Participant prior to his
Normal Retirement Date without his consent.
(b) If upon the Participant's termination of employment his Vested interest in this Plan is $3,500
or more, a distribution it will be paid immediately unless the Participant requests that payment
made at his Normal Retirement Date,
7.4 If a Participant other than a part-time, seasonal or temporary employee terminates his
employment with the Employer and is not fully Vested in his Employer Contribution Account on
his date of termination, he shall forfeit that portion of his Employer Contribution Account in
which he was not vested as of the Valuation Date next following. Any amounts so forfeited shall
be applied to reduce future Employer Contributions made under this Plan.
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ARTICLE VIII
DEATH BENEFITS
8.1 If a married Participant dies prior to receiving his interest in this Plan, his spouse shall become
Beneficiary. If unmarried, his estate shall be the beneficiary unless otherwise evidenced by a
written instrument.
8.2 At any time, and from time to time, each Participant, retired Participant, disabled Participant or
terminated Participant shall have the right to designate the Beneficiary to receive the death
benefits to which he is entitled hereunder. The Beneficiary for a married Participant shall at all
times be the Spouse of the Participant and may not be ebanged to someone other than the Spouse
unless Spousal Consent is provided. Each such designation for death benefits shall be evidenced
by a written instrument filed with the Administrator and signed by the Participant. If no such
designation is on file with the Administrator at the time of the death of the Participant, or if for
any reason at the sole discretion of the Administrator such designation is defective, then the
Spouse of such Participant shall be conclusively deemed to be the Beneficiary designated to
receive such benefit.
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ARTICLE IX
ADMINISTRATION
9.1 The Employer is the Plan Administrator under this Plan within the meaning of the Employee
Retirement Security Act of 1974'(ERISA),as applicable to governmental plans and as amended
from time to time, and shall supervise and control the operation of this Plan in accordance with its
terms and may make rules and regulations for the administration of this Plan which,are not
inconsistent with the terms and provisions hereof.
9.2 The Employer shall see that books of account are kept which shall show all receipts and
disbursements and a complete record of the operation of this Plan, including records of the
Accounts of individual Participants. The Administrator shall be responsible for the preparation,
submission, and/or publication of all reports, descriptions, and forms which may be required for
this Plan to conform to the applicable provisions of the Code.
9.3 In any case where the provisions of this Plan require the consent or approval of the Employer or
Administrator of an election or request made by an Employee, Participant, or Beneficiary, in
order to make such election or request effective, the Employer shall act on such election or
request as promptly as shall be reasonable in the circumstances. In any case where action by the
Insurer under the group annuity contract is necessary in order to make operative an effective
election or request made by an Employee, Participant or Beneficiary, it shall be the
responsibility of the Employer to transmit such election or request to the Insurer in writing and
as promptly as shall be reasonable in the circumstances. The Insurer shalt not be obliged to take
action under the group annuity contract with respect to any particular election or request unless
the Insurer shall have received the election or request in such form and detail as shall be
reasonably required by the Insurer.
9.4 The Employer in interpreting any provision of this Plan or in making any judgment or
determination with respect to any person hereunder will apply uniform rules in a like,manner to
all persons under similar circumstances.
9.5 If an application or a claim for benefits under this Plan has been filed with the Administrator by a
Participant or Beneficiary (claimant), the Administrator must decide within 90 days (an additional
90 days may be granted if proper notice is given to the claimant indicating the special circum-
stances requiring an extension prior to the termination of the initial 90-day period)whether to pay
benefits. If the claimant does not receive any answer from the Administrator within 90 days or in
180 days (in special instances) the claim for benefits shall be considered to have been denied. The
Administrator shall provide the claimant with a written explanation for the denial of benefits in
language calculated to be understood by the Participant citing pertinent provisions of the Plan, an
explanation of the Plan's claim review procedure with appropriate forms for the claimant's use in
submitting his claim, and a description of any information necessary for the claimant to perfect the
claim.
15
V � r
ARTICLE X
AMENDMENT AND DISCONTINUANCE OF THIS PLAN
10.1 While the Employer expects to continue this Plan indefinitely, it necessarily reserves the right to
amend this Plan at any time. No such amendment shall, however, deprive any Participant or
Beneficiary of any benefit previously vested in him under this Plan. Irrespective of any amendment,
no part of the assets held under this Plan shall ever revert to the Employer or be used for or diverted
to any purpose other than for the exclusive benefit of the Participants.
10.2 It is expressly understood, however, that the power of the Employer to amend this Plan is subject
to this Article, and that no amendment shall be made which would:
(a) deprive any Beneficiary of a then deceased Participant of the right to receive the benefits to
which the Beneficiary may be entitled hereunder,
(b) deprive any Participant of the benefits to which be is entitled hereunder,
(c) deprive any Participant of any of the proportionate interest in this Plan to which he would be
entitled were he to terminate employment on the date of such amendment,
(d) eliminate or reduce an early retirement benefit or retirement type subsidy (as defined in
regulations), or
(e) eliminate an optional form of benefit, except to the extent it may be required to qualify, or as
a condition of continued qualification of this Plan, under Section 401 of the Code.
10.3 This Plan shall be permanent and discontinued upon written notice to the Trustee by the Employer.
A complete discontinuance of contributions by the Employer shall be deemed a discontinuance of
this Plan.
10.4 If this Plan is terminated, partially terminated, or suspended, or if Employer Contributions to this
Plan are permanently discontinued, further contributions to this Plan shall thereupon cease and all
credits to the Account of Participants and former Participants who are affected by such termination,
partial termination, or suspension shall become one hundred percent(100%)vested. Any
forfeitures which shall have occurred in accordance with Article VII. Section 7.3 hereof prior to
reduce Employer Contributions hereunder shall be distributed pro-rata among the Accounts of
those Employees who were Participants on the effective date of the termination of this Plan.
10.5 In the event the Employer decides it is impossible or not advisable to continue to make its
contributions as herein provided, the Employer shall have the power to terminate this Plan through
appropriate resolutions.
10.6 This Plan may not be merged or consolidated with any other plan, nor may any assets or liabilities
of this Plan be transferred to any other plan unless each Participant in this Plan would(if such Plan
had then terminated) receive a benefit immediately after such merger, consolidation or transfer
which is equal to or greater than the benefit be would have been entitled to receive immediately
before such merger, consolidation or transfer(if this Plan had then terminated).
16
1
ARTICLE XI
MISCELLANEOUS
11.1 inclusion in this plan shall not be construed as giving the Employee any right to be retained in the
service of the Employer without its consent, nor shall it interfere with the right of the Employer to
discharge the Employee, nor shall it give the Employee any right, claim or interest in any
retirement benefits herein described except upon fulfillment of the provisions and requirements of
this Plan.
11.2 (a) To the maximum extent permitted by law, the benefits or payments herein provided shall not
in any way be liable to attachment, garnishment or other process, or be seized, taken,
appropriated or applied by any legal or equitable process, to pay any debt or liability of any
Participant. Except as otherwise permitted by law or an order, decree or judgment issued
pursuant to a Qualified Domestic Relations Order, benefits or payments under this Plan may
not be assigned. In the event of any conflict between provisions of this Plan and the terms
of any description issued in conjunction with the flan, the provisions of this Plan shall
control.
(b) For purposes of this Plan a 'Qualified Domestic Relations Order" means a domestic
relations order(as specified below)which creates or recognizes the existence of an alternate
payee's (any Spouse, former Spouse. child or other dependent of a Participant) right to, or
assigns to an alternate payee the right to, receive all or a portion of the benefits payable to a
Participant under this Plan. A domestic relations order means any judgment, decree or
order (including approval of a property settlement agreement)which relates to the provision
of child support, alimony payments, or marital property rights to a Spouse, former Spouse,
child or other dependent of a Participant and is made pursuant to a state domestic relations
order. Such order(a)must clearly specify (1)the name and last known mailing address (if
any)of the Participant and the alternate payee covered by the order, (2) the amount or
percentage of the Participant's Account to be paid by the Plan to each alternate payee, or the
manner in which such amount or percentage is to be determined, (3) the number of payments
or period to which such order applies, and(4) the name of each Plan to which such order
applies, and (b)must not require (1) the plan to provide any type or form of benefits, or any
option, not otherwise provided under the Plan, or(2) provide increased benefits, and (3) the
payment of benefits to an alternate payee which are required to be paid to another alternate
payee under another order previously Qualified Domestic Relations Order. The provisions
relating to the establishment of a Qualified Domestic Relations Order and the payment of
any benefits to an alternate payee shall be applied in the method and manner which is
consistent with Section 414(p)of the Code. %
Execu s y of , 199-a-, at sue%
Signature of strator
Title
F:M�rhpi..dm�..•Id
17
•
Amendments to the Public Agency Retirement System- City of Huntington Beach
11.3 (a) This section applies to distributions made on or after January 1, 1993. Notwithstanding
any provision of the plan to the contrary that would otherwise limit a distributee's
election under this section, a distributes 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.
(b) Definitions
(i) Eligible Rollover Distribution: An eligible rollover distribution is any distribution of all
or any portion of the balance to the credit of the distributee, except that an eligible
"- -- -- rollover distribution 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 specified period of
ten years ormore; any distribution that is not Includible in gross income (determined
without regard to the exclusion for net unrealized appreciation with respect to
employer securities).
(ii) Eligible retirement plan: An eligible retirement plan is an individual retirement
account described in section 408(a)of the Code, an individual retirement annuity
described in section 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 the
distributee's eligible rollover distribution. However,in the case of.an eligible rollover
distribution to a surviving spouse, an eligible retirement plan is an individual
retirement account or individual retirement annuity.
(M) Distributee: A distributee includes an employee or former employee. In addition,
the employee's or former employee's surviving spouse and the employee's or former
employee's spouse or former spouse who is the alternate payee under a qualified
domestic relations order, as defined in section 414(p) of the Code, are distributees with
regard to the interest of the spouse or former spouse. _
(iv)Direct Rollover: A direct rollover is a payment by the plan to the eligible retirement
plan specified by the distributee.
Exec his ff y of , 1993, at �`-�• �� +�� �-• .-�
ature of lan ministrator 5' �
Title T
RECEIVED MA-k 2 2 1393
Proposed Admendments — City of Huntington Beach
Public Agency Retirement System
City of Huntington Beach ("City") has adopted the Public
Agency Retirement System ("Plan") for the benefit of eligible employees, and
has reserved the right to amend the Plan. The Plan shall therefore be amended
as specified below as of January 1, 1992 the effective date of the Plan.
Amendment # One
Section 4.4 of the Plan shall be amended by adding the following:
The assets of the Trust will be valued annually at fair market value as of the last day
of the Plan Year. On such date, the earnings and losses of the Trust will be allocated
to each Participant's Accounts in the ratio that the value of each Account balance
bears to all account balances.
Amendment # Two
r` Section 3.4 shall be amended by adding the following:
Excess annual additions. If, as a result of the allocation of forfeitures, or a
reasonable error in estimating a Participant's annual compensation, the annual
additions under the terms of a plan for a particular participant would cause the
limitations of Section 415 applicable to that participant for the limitation year
to be exceeded, the excess amounts shall not be deemed annual additions in
that limitation year and shall be treated as follows:
(i) The excess amounts in the participant's account shall be allocated and
reallocated to other participants in the plan. However, if the allocation or
reallocation of the excess amounts causes the limitations of Section 415 to be
exceeded with respect to each plan participant for the limitation year, then
these amounts shall be held unallocated in a supense account. If a suspense
account is in existence at any time during a particular limitation year, other
than the limitation year described in the preceding sentence, all amounts in
the suspense account shall be allocated and reallocated to Participants'
accounts (subject to the limitations of Section 415) before any employer
contributions and employee contributions which would constitute annual
additions may be made to the plan for that limitation year. -
2
Amendment#f Three
Section 3.4 shall be amended by adding the following:
If, in addition to this Plan, the Participant is covered under another qualified
defined contribution plan maintained by the Employer, a welfare benefit fund, as
defined in Code Section 419(e) maintained by the Employer, or an individual '
medical account, as defined in Code Section 415 (1) (2), maintained by the
Employer, that provides an Annual Addition during any Limitation Year, the
Annual Additions that may be credited to a Participant's accounts under this Plan
for any Limitation Year will not exceed the maximum amount permitted under
Code Section 415 reduced by the Annual Additions credited to the 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 funds maintained by the Employer
are less than the maximum amount permitted under Code Section 415 and the
Employer contributions that would otherwise be contributed or allocated to the
Participant's accounts under this Plan would cause the Annual Additions for the
Limitation Year to exceed this limit, the amount contributed or allocated
under this Plan will be reduced so that the Annual Additions under all such plans
and-funds for the Limitation Year will equal less than the maximum amount
permitted under Code Section 415. 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 amount permitted
under Code Section 415, no amount will be contributed or allocated to the
Participant's accounts under this Plan for the Limitation Year.
If the employer maintains, or at any time maintained, a qualified defined
benefit plan covering any Participant in this Plan, the sum of the Participant's
Defined Benefit Fraction and Defined Contribution Fraction will not exceed
1.0 for any Limitation Year. For this purpose, the amount of the Annual
Addition for any Limitation Year will be reduced to the extent necessary
so that the sum of the Defined Benefit Fraction and Defined Contribution
Fraction do not exceed 1.0. For purposes of the above, the following
definitions will apply:
Compensation: All of each Participants's compensation (as that term is defined
in Code §415(c)(3)). For any Self Employed Individual covered under the Plan,
compensation will mean Earned Income. Compensation includes only that compensation
which is actually paid to, or includible in the gross income of, the Participant
during the "applicable period". For this Plan, except as specified to the contrary
elsewhere in this Plan document, the applicable period will be the Plan Year
unless applicable law mandates a different period, in which case the applicable
period will be such legally required period.
3
The annual compensation of each Participant taken into account under the Plan for
any year will not exceed $200,000, as adjusted by the Treasury Secretary at the
same time and in the same manner as under Code §415(d), except that the dollar
increase in effect on January 1 of any calendar year is effective for years beginning
in such calendar year. If the Plan determined compensation on a period of time that
contains fewer than 12 calendar months, then the annual compensation limit is an
amount equal to the annual compensation limit for the calendar year in which the
compensation period begins multiplied by the ratio obtained by dividing the
number of full months in the period by 12.
In determining the compensation of a Participant for purposes of this limit, the
rules of Code §414(q)(6) will apply, except in applying these rules, "family"
will include only the Participant's spouse and any lineal descendants of the
Participant who have not attained age 19 before the close of the year. If, as
a result of the application of these rules, the adjusted $200,000 limit is exceeded,
then (except for determining the portion of compensation up to the integration
level if this Plan provides for permitted disparity), the limit will be prorated
4 among the affected individual's compensatin determined under this section before
this limit is applied.
If compensation for any prior plan year is taken into account in determining the
employee's contributions or benefits for the current year, the compensation for such
year, is subject to the applicable annual compensation limit in effect for that
prior year.
Defined Benefit Fraction; .A fraction, the numerator of which is the sum of
the Participant's projected annual benefits under all the defined benefit plans
(whether or not terminated) maintained by the Employer, and the
denominator of which is the lesser of 125% of the dollar limit determined
for the Limitation Year under Code §415(b) and (d) or 140% of the highest
average compensation, including any adjustments under Code §415(b).
Notwithstanding the above, if the Participant was a Participant as of the first
day of the first Limitation Year beginning after December 31, 1986, in one
or more defined benefit plans maintained by the Employer that were in
existence on May 6, 1986, the denominator of this fraction will not be less
than 125% of the sum of the annual benefits under such plans that the
Participant had accrued as of the close of the last Limitation Year beginning
before January, 1, 1987, disregarding any changes in the terms and
conditions of the plan after May 5, 1986. The preceding sentence applies
only if the defined benefit plans individually and in the aggregate satisfied
Code §415 for all Limitation Years beginning before January 1, 1987.
4
•
Defined Contribution Dollar Limitation: $30,000 or if greater, one—fourth
of the defined benefit dollar limitation of Code §415(b)(1) as in effect for
the Limitation Year.
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 contribution plans (whether or not 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 Additions attributable to all
welfare benefit funds, as defined in Code §419(e), and individual medical
accounts, as defined in Code §415(1)(2), 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 service with the Employer
(regardless of whether a defined contribution plan was maintained by the
Employer). The maximum aggregate amount in any Limitation Year is the
lesser of 125% of the dollar limitation'determined under Code §415(b) and
(d) in effect under Code §415(c)(1)(A) or 35% of the Participant's
compensation for such year.
If the Employee was a Participant as of the end of the first day of the first
Limitation Year beginning after December 31, 1986, in one or more defined
contribution plans maintained by the Employer that were in existence on
May 6, 1986, the numerator of this fraction will be adusted if the sum of
this fraction and the Defined Benefit Fraction would otherwise exceed 1.0
under the terms of this plan. Under the adjustment, an amount equal to the
product of (i) the excess of the sum of the fractions over 1.0 times (ii) the
denominator of this fraction, will be permanently 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 §415
limitation applicable to the first Limitation Year beginning on or after
January 1, 1987.
Employer: For purposes of this Article, Employer will mean the Employer
that sponsors this Plan, and all members of a controlled group of
corporations (as defined in Code §414(b) as modified by §415(h), all
commonly controlled trades or businesses (as defined in §414(c) as modified
by §415(h) or affiliated service groups (as defined in §415(m) of which the
Employer is a part, and any otber entity required to be aggregated with the Employer
pursuant to regulations under §414(o).
5
Ammendment Four
A new Section IS will be added as follows:
If the Plan's vesting schedule is amended or the Plan is amended in any way that
directly or indirectly affects the computation of a 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 with at least three years of
service with the Employer may elect within a reasonable period after the
adoption of the amendment or change to have his nonforfeitable percentage
computed under the Plan without regard to such amendment, or change.
Election period. The period daring which the election may be made will begin
with the date the amendment is adopted or deemed to be made and will end on
the latest of-
(i) 60 days after the amendment is adopted;
ii 60 days after the amendment become effective; r
( ) y a e s t�ve, o
(iii) 60 days after the Participant is issued written notice
of the amendment by the Employer or Plan Administrator.
Amendment # Five
Section 4.4 shall be amended to delete the following sentence:
Not less frequently than annually, the Employer shall notify each participant of
the value of his Employer Contribution Account and Employee Contribution Account.
a
6
Execu 's a 199_:�-, at Aw T1'y 61-10AJ T2 gzl--
Signa ure of Iarl Administr or
Title .
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r
ADOPTION AGREEMENT '
Version 5
October 22, 1991
Copyright c t991 PHASE tt SYSTEMS. Alt rights reserved. Reproduction in part or whole is prohibited.
ADOPTION AGREEMENT TO
THE PUBLIC AGENCY RETIREMENT SYSTEM (PARS)
AND TRUST AGREEMENT
EMPLOYER City of Huntington Beach, California
FEDERAL I.D. # 95-6000723
PLAN ADMINISTRATOR Pzbert J. Franz
(Name)
Deputy City Administrator
(Title)
ADDRESS Adnini Strative Services
(Department)
2000 Main 5tree
(Number and Street)
Huntirtyton Beach, California_ 92648 -
(City) (State and Zip Code)
NAME OF PLAN PUBLIC AGENCY RETIREMENT SYSTEM (PARS)---
City of Huntington Beach
(Agency Name)
I
t ,
INTRODUCTION
This Adoption Agreement, the provisions of the Public Agency Retirement System (PARS), and the
provisions of the PARS Trust of which this Agreement is a part, are hereby adopted by the Employer
executing this Agreement for the benefit of Eligible Employees and their Beneficiaries.
This Adoption Agreement is part of the adoption of a new Plan, as provided in Section 2.5 of the PARS
Trust.
Item 1: EFFECTIVE DATE
EFFECTIVE DATE shall mean January J., 1992
Item 2: ELIGIBLE EMPLOYEE
A. ELIGIBLE EMPLOYEE shall mean only those Employees who, at any time during which the
Employer maintains this Plan, are not accruing a benefit under Social Security or another Retirement
System provided and maintained by the Employer which meets the minimum requirements of IRS
Regulations of IRC Section 3121 (b)(7)(1).
B. ELIGIBLE EMPLOYEE shall include all active and inactive employees until termination of
employment.
C. ELIGIBLE EMPLOYEE shall exclude all employees exempted under IRC Section 3121 (b)(7)(f).
D. ELIGIBLE EMPLOYEE shall include the following:
Thom employees not enrolled in PERS (Public Employees'
Retironmt System)
Item 3: ELIGIBILITY CONDITIONS
A. SERVICE REQUIREMENT: An Employee wha qualities as an ELIGIBLE EMPLOYEE under
Item 2 above shall be eligible to participate immediately.
B. EMPLOYMENT REQUIREMENT: An Employee who terminates employment during the Plan
Year shall still be eligible to participate during such Plan Year.
Item 4: COMPENSATION
A. COMPENSATION shall mean all compensation for the Plan Year paid or payable in cash or in kind
by the Employer for personal services by the Eligible Employee. This definition of COMPENSATION
shall be subject to the provisions of Article 1.06 of the Plan as well as the further provisions of this Item.
B. If elected in this Item, the term COMPENSATION shall be defined as follows:
CALIF. PERS Compensation [] YES [] NO
CALIF. STRS Compensation j ] YES [] NO
Base Salary [I YES [ ] NO
Other fix] YES [ ] NO (define below_ )
2
Item 5: NORMAL RETIREMENT AGE
NORMAL RETIREMENT AGE shall mean sixty (60) years of age.
Item 6: NORMAL RETIREMENT DATE
NORMAL RETIREMENT DATE shall mean the first of the month coincident with or next following
the date on which the Participant attains NORMAL RETIREMENT AGE.
Item 7: DEATH AND TOTAL DISABILITY PROVISION
A Participant's Vesting and distribution rights on the date of his death or "Permanent and Total
Disability" will be the same as the Vesting and distribution rights applicable on the date of his
attainment of Normal Retirement Age.
Item S: ALLOCATION AND AMOUNT OF CONTRIBUTIONS
A. The Employer shall make Employer Contributions in the amount of 0 .% of each Participant's
Compensation. Employer Contributions shall be forwarded to the Trustee to be allocated to each
Participant's Employer Contribution Account.
B. Each Participant shall make Employee Contributions in the amount of 7_ % of his Compensation.
Employee Contributions shall be forwarded to the Trustee to be allocated to the Participant's Employee
Contribution Account. Employee contributions will be "before tax" due to the employer's adoption of
IRC Section 414(h) "employer pickup" in the Plan Document.
C. All Plan expenses shall be paid out of Plan assets, and shall be allocated as follows:
0 % to the Employer Contribution Accounts, and 100 % to the Employee Contribution Accounts.
D. A Participant shall not be permitted to direct the investment of his Employer Contribution Account
or his Employee Contribution Account.
Item 9: INVESTMENT OF CONTRIBUTIONS
A. Yes R No Contributions will be deposited in Imperial Trust Company's Money Market
Fund and wire-transferred on last working day of the month to the Hartford's Group Immediate
Participation Guarantee (IPG) insured investment contract.
D. Yes No X Contributions will be deposited in Imperial Trust Company's Money Market
Fund.
Item 10:VALUATION DATE
VALUATION DATE shall mean the last day of the Plan Year.
Item 11:METHOD OF FUNDING
The Plan shall be funded as provided under Section 4.1 of the PARS Plan Document.
3
Item 12:VESTING
A. Yes No-K—Years of Service with the Employer completed before the Employer maintained this
Plan shall be counted to determine the nonforfeitable percentage in such Employee's benefit from
Employer Contributions.
B. Yes-_No Years of Service completed prior to termination of employment shall not be credited
to an Employee who terminates employment before satisfying the eligibility requirements in Item 3 of
the Adoption Agreement.
C. For Vesting purposes, a Participant will be credited with a Year of Participation or Service only if
he or she completes at least one Hour of Service during the computation period.
D. The Participant's Employee Contribution Account shall be 100% Vested at all times. The
Participant's Employer Contribution Account shall be 100% Vested at Normal Retirement Age, or Total
Disability or death. However, notwithstanding anything to the contrary in this Plan, the Participant shall
be Vested in his Employer Contribution Account to such a degree and at such a time as to meet the
minimum requirements for a retirement system under Section 3121(b)(7)(F) of the Code.
E. Benefits shall be vested in accordance with the following:
Yes No_X_.A participant transferring to an eligible retirement plan with the same
employer shall be [00% vested.
Yes No__XTThe scheduling shown below shall be used:
Item 13:PLAN YEAR
The PLAN YEAR shall be the period of twelve (12) consecutive months commencing on
1/1/92 and ending on 12131/92
Item 14:MISCELLANEOUS
This Adoption Agreement shall be used only in conjunction with the Public Agency Retirement System
(PARS) and the PARS TruA.
Executed this , 1991, at Huntinclton Beach, , California.
Signature o m' strator
Robert J. Franz, De t Cit 'strator
Title
4
INTERNAL, REVENUE SERVICE DEPARTMENT OF THE TREASURY
DISTRICT DIRECTOR
2 CUPANIA CIRCLE
MONTEREY PARK, CA 91754
Employer Identification Number:
Hate: FEB 0 3 � 95-6000723
File Folder Number:
CITY OF HUNTINGTON BEACH 331005129
C/O MYLES MARGADY Person to Contact:
PHASE II SYSTEMS RAMON CHAVEZ
350 EAST SEVENTEENTH ST SUITE 212 Contact Telephone Number:
COSTA MESA, CA 92627 (213) 725-0905
Plan Name:
PUBLIC AGENCY RETIREMENT SYSTEM
CITY OF HUNTINGTON BEACH
Plan Number: 002
Dear Applicant:
We have made a favorable determination on your plan, identified above,
based on the information supplied. Please keep this letter in your permanent
records.
Continued qualification of the plan under its present form will depend
on its effect in operation. (See section 1.401-1(b) (3) of the Income Tax
Regulations.) We will review the status of the plan in operation periodically.
The enclosed document explains the significance of this favorable
determination letter, points out some features that may affect the qualified
status of your employee retirement plan, and provides information on the
reporting requirements for your plan. It also describes some events that
automatically nullify it. It is very important that you read the publication.
This letter relates only to the status of your plan under the Internal
Revenue Code. It is not a determination regarding -the-effect of other federal
or local statutes.
This determination letter is applicable for the plan adopte., z
12-16-91.
This letter is based upon-the certification and demonstrations. you sub-
mitted pursuant to Revenue Procedure 91-66. Therefore, the certification and
demonstrations are considered an integral part of this letter. Accordingly,
YOU MUST KEEP A COPY OF THESE DOCUMENTS AS A PERMANENT RECORD OR YOU WILL NOT
BE ABLE TO RELY ON THE ISSUES DESCRIBED IN REVENUE PROCEDURE 91-66.
We have sent a copy of this letter to your representative as indicated in
the power of attorney.
Letter 835(DO/CG)
RECEIVED FEB0 � 593
r
2-
CITY OF HUNrINGTON BEACH
If you have questions concerning this matter, please contact the person
whose name and telephone number are shown above.
Sincerely yours,
�f
Mich el J. inn
District Director
Enclosures:
Publication 794
PWBA 515
Letter 835 (DO/CG)
CITY COUNCIL RESOLUTION NO. 6338
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH, APPROVING PARTICIPATION IN
PUBLIC AGENCY RETIREMENT SYSTEM (MARS)
WHEREAS, it is determined to be in the best interest of the City of Huntington
Beach and its employees to provide a qualified retirement system to all part-time
employees , thereby meeting the requirements of Section 11332 of the Social Security
Act; and
WHEREAS, an alternative qualified defined contribution pension plan entitled Public
Agency Retirement System (PARS) is designed for California Public Agencies; and
WHEREAS, the Public Agency Retirement System (PARS) will qualify as a retirement
plan in place of Social Security coverage.
NOW, THEREFORE, the City Council of the City of Huntington Beach, DOES HEREBY
RESOLVE, DETERMINE, AND ORDER as follows:
SECTION 1 . Adoption of the PARS pension plan effective January 1 , 1991 ; and
SECTION 2. The Deputy City Administrator/Chief of Administrative Services is
hereby appointed as the Plan Administrator; and
$ECTIQN L. The Plan Administrator is hereby authorized to execute an adoption
! agreement and administration agreement and other necessary actions
-,a to maintain participation and compliance with Section 11332 of the
Social Security Act and the relevant regulations issued or as may
be issued.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at an
adjourned regular meeting held on the 16th day of ber 1991 .
MAYOR
ATTESTED: APPROVED AS TO FORM:
CITY CLERK.
_ {
CITY ATTO Y
DNREVIEWED IAT
YCIT ADMIN TOR DEP Y MST TOR
y �
S
Res. He. 6339
. s
STATE OF CALIFORNIA
COUNTY OF ORANGE ss:
CITY OF HUNTINGTON BEACH }
I, CONNIE BROCKWAY, the duly elected, 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 - meeting thereof held on the 16th day
Of December 1991 by the following vote:
AYES: Councilmembers:
Robitaille, Moulton--Patterson, Winchell, Silva, Green, MacAllister, Kelly
NOES: Councilmembers:
None
ABSENT: Councilmembers:
None _ --- --
City er nd ex-officiQXlerk
of the City Council of the City
of Huntington Beach, California
INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY
DISTRICT DIRECTOR
2 CUPANIA CIRCLE
MONTEREY PARK, CA 91754
Employer Identification Number:
Date: FEB U 3 95-6000723
File Folder Number:
CITY OF HUNTINGTON BEACH 331005129
. C/O MYLES MARGADY Person to Contact:
PHASE II SYSTEMS RAMON CHAVEZ
350 EAST SEVENTEENTH ST SUITE 212 Contact Telephone Number:
COSTA MESA, CA 92627 (213) 725-0905
Plan Name:
PUBLIC AGENCY RETIREMENT SYSTEM
CITY OF HUNTINGTON BEACH
Plan Number: 002
Dear Applicant:
We have made a favorable determination on your plan, identified above,
based on the information supplied. Please keep this letter in your permanent
records.
Continued qualification of the plan under its present form will depend
on its effect in operation. (See section 1.401-1 (b) (3) of the Income Tax
Regulations.) We will review the status of the plan in operation periodically.
The enclosed document explains the significance of this favorable
determination letter, points out some features that may affect the qualified
status of your employee retirement plan, and provides information on the
reporting requirements for your plan. It also describes some events that
automatically nullify it. It is very important that you read the publication.
This letter relates only to the status of your plan under the internal
Revenue Code. it is not a determination regarding the effect of other federal
or local statutes.
This determination letter is applicable for the plan adopts x
12-16-91.
This letter is based upon the certification and demonstrations you sub-
mitted pursuant to Revenue Procedure 91-66. Therefore, the certification and
demonstrations are considered an integral part of this letter. Accordingly,
YOU MUST KEEP A COPY OF THESE DOCUMENTS AS A PERMANENT RECORD OR YOU WILL NOT
BE ABLE TO RELY ON THE ISSUES DESCRIBED IN REVENUE PROCEDURE 91-66.
We have sent a copy of this letter to your representative as indicated in
the power of attorney.
Letter 835 (DO/CG)
S 1t -
RECEIVED FEB t53
-2-
CITY OF HUNTINGTON BEACH
If you have questions concerning this matter, please contact the person
whose name and telephone number are shown above.
Sincerely yours,
Milel J. inn
District Director
Enclosures:
Publication 794
PWBA 515
{
i
Letter, 935 (DO/CG)
s
J�
CITY OF HUNTINGTON BEACH
INTERDEPARTMENTAL COMMUNICATION
HUNTING ON BEACH
TO: Bill Osness
Personnel Director
FROM: Connie Brockway '
City Clerk
DATE: October 14, 1997
SUB_,,1ECT: PUBLIC AGENCY RETIREMENT SYSTEM (PARS)—ADOPTION AGREEMENT
AND ADMINISTRATION AGREEMENT
According to Resolution 6338, Section 3 (copy attached) adopted by the City Council on
December 16, 1991, the Public Agency Retirement System (PARS) Plan Administrator is
"authorized to execute an adoption agreement and administration agreement . . ." In order to
comply with a citizen's request, please forward to my attention the original agreement
referenced in Section 3.
Thank you for your assistance.
CB:cjg
Attachment: Copy of City Council Resolution No. 6338
cbmemosl97-1 i 9cg
Res. No. 6338
STATE OF CALIFORNIA
COUNTY OF ORANGE ss:
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, the duly elected, qualified City
Clerk of the City of Huntington Beach, and ex-officio Cleric 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 meeting thereof held on the 16th day
Of December 19 91 - , by the following vote:
AYES: Councilmembers:
Robitaille, Moulton-Patterson, Winchell, Silva,_ Green, MacAllister, Kelly
NOES: Councilmembers:
None
ABSENT: Councilmembers:
None
City Clerk and ex-offic!QK ferk
of the City Council of the City
of Huntington Beach, California