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DATE: November 20, 1997 <br />TO: City Commission <br />FROM: City Manager <br />SUBJECT: INTERNATIONAL CITY MANAGEMENT ASSOCIATION <br />MANAGEMENT EMPLOYEES 401 MONEY PURCHASE RETIREMENT <br />PLAN AND TRUST ADOPTION AGREEMENT <br />RECOMMENDATION <br />It is recommended that the City Commission adopt, by resolution, the attached ICMA Management <br />Employees 401 Money Purchase Retirement Plan. <br />REASONS <br />When the City Attorney was hired, in August 1997, the City Commission anticipated providing City <br />contributions into a retirement plan. The same concept was included in the City Manager's agreement <br />and an amount equal to 10% of annual salary was specified. The proposed agreement accomplishes the <br />purpose of establishing a retirement plan for both employees, and permits other Department Heads to join <br />at a later date. Setting up the program now, allows the City to use this benefit as a recruitment tool for <br />obtaining additional qualified employees and will assist in closing out the books for the 1997 tax year. <br />ADDITIONAL INFORMATION <br />City contributions will be made monthly, with retroactive payment to the date of hire. The management <br />plan allows the employees to be immediately vested. There is no employee matching contribution. The <br />City of Key Biscayne contributes 11% into a similar program. The Village of Pinecrest pays 10% and <br />Aventura provides a 12% benefit. There is an annual management fee paid to ICMA Retirement <br />Corporation not to exceed $1,000. However, as other 401 or 457 Plans are added, (i.e., General and <br />Police Employees) there will be no additional fees. <br />Respectfully submitted <br />James DiPietro <br />City Manger <br />(Effective 12101097) <br />JD:pw <br />