HomeMy WebLinkAboutReso 1997-0023
RESOLUTION NO. 97-23
A RESOLUTION OF THE CITY COMMISSION OF TIlE CITY OF SUNNY
ISLES BEACH, FLORIDA, RELA TINGTO PENSIONS AND RETIREMENT,
AUTHORIZING THE ESTABLISHMENT OF AN ALL EMPLOYEES 401
MONEY PURCHASE PLAN; AUTHORIZING TIlE CITY MANAGER TO
ENGAGE ICMA RETIREMENT CORPORATION AS THE
ADMINISTRATOR OF THE MONEY PURCHASE RETIREMENT PLAN
IN ACCORDANCE WITH THE ADOPTION AGREEMENT;
AUTHORIZING THE CITY OF SUNNY ISLES BEACH TO SERVE AS
TRUSTEE AND AUTHORIZING THE CITY MANAGER TO DO SUCH
OTIlER THINGS AS ARE NECESSARY TO ESTABLISH SAID PLAN; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Sunny Isles Beach, Florida, has employees rendering valuable public
services; and
WHEREAS, the City Commission of the City of Sunny Isles Beach desires to establish a
Money Purchase Retirement Plan which will benefit all employees by providing funds for retirement
and funds for their beneficiaries in the event of death; and
WHEREAS, the City Commission has reviewed the Money Purchase Retirement Plan
agreement proposed for administration by the ICMA Retirement Corporation and has found that for
the funds to be held under such Plan and invested in the ICMA Retirement Trust will serve the best
interest of the program and the employees involved.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE
CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS:
Section 1. A Money Purchase Retirement Plan (the "Plan") for the employees is hereby
established in the form of the ICMA Retirement Corporation prototype money purchase plan and
trust adoption agreement, a true copy of which is attached hereto as Exhibit "A" and made a part of
this Resolution by reference.
Section 2. The Plan shall be maintained for the exclusive benefit of eligible employees and their
beneficiaries.
Section 3. The City of Sunny Isles Beach, Florida, shall serve as Trustee under the Plan and to
invest funds held under the Plan in the Trust.
Section 4.
The City Manager is hereby authorized to:
(a)
Execute the Declaration of Trust of the ICMA Retirement Trust; and
RES97-23
(b)
Serve as coordinator of the Plan, receive necessary reports, notices and similar
communications from the ICMARetirement Corporation or ICMARetirement Trust,
cast, on behalf of the City, any required votes under the ICMA Retirement Trust; and
(c)
Delegate any administrative duties relating to the Plan to appropriate departments of
the City; and
(d)
Execute all necessary documents, instruments and agreements with the ICMA
Retirement Corporation reasonable and necessary in the administration of the Plan.
Section 5.
This Resolution shall become effective upon adoption.
PASSED AND ADOPTED this 20th day of November, 1997.
ATTEST:
3:K. d. ~ lvL-w J ~ ~
Jonda K.lose
lntenm eHy Clerk
APPROVED AS TO FORM
AND LEGAL SUFFICIENCY
.".. v. ,
~~
City Attorney
~,~ ~ C.'W\~i~s\~
~~W ~ Co~i'S.\~
Vote:
Il"\~
~
Mayor Samson
Vice Mayor Turetsky
Commissioner Iglesias
Commissioner Kauffman
Commissioner Morrow
~(Yes)
~(Yes)
~(Yes)
v (Yes)
~(Yes)
_(No)
_(No)
_(No)
_(No)
_(No)
RES97-23
11/05/1997 13:01
305-755-7722
NORTH BAY VILLAGE
PAGE 02
DATE:
November 20, 1997
TO:
City Commission
FROM:
City Manager
SUBJECT:
INTERNATIONAL CITY MANAGEMENT ASSOCIATION
EMPLOYEES 401 MONEY PURCHASE RETIREMENT PLAN AND
TRUST ADOPTION AGREEMENT
RECOMMENDA TION
It is recommended that the City Commission adopt, by resolution, the attached leMA Employee 401
Money Purchase Retirement Plan.
REASONS
When the Paralegal Assistant was hired in September 1997, it was anticipated that she would receive
retirement program benefits similar to other employees, A 10% City contribution rate is
reconunended as it is the same as provided to the City Attorney and City Manager and is a reasonable
standard that can be used throughout the organization. The proposed agreement accomplishes the
purpose of establishing a city-wide program (excluding management employees), allows the City to
use this benefit as a recruitment tool for obtaining additional qualified employees and will assist in
closing out the books for the 1997 tax year,
ADDITIONAL INFORMATION
City contributions will be made monthly, with retroactive payments to the date of hire, The
employees' plan offers the following vesting schedule,
A)
B)
C)
1 Year
2 Years
3 Years
40% vested
70% vested
100% vested
Employees must match the City's 10% payment with their own 4% contribution.
11/05/1997 13:01
305-755-7722
City Commission
November 20, 1997
Page 2
NORTH BAV VILLAGE
PAGE 03
By comparison, vesting schedules and employee matches of other cities are as follows:
/
A)
A vcntura
/'
B)
Key Biscayne
C)
Pinecrest
12% City Contribution
0% Employec Contribution
3 Years - 20% Vested
4 Years - 40% Vested
5 Years. 60% Vested
6 Years - 80% Vested
7 Years - 100% Vested
11 % City Contribution
6% Employee Contribution
100% Immediate Vesting
10% City Contribution
5% Employee Contribution
1 Year - 20% Vested
2 Years - 40% Vested
3 Years - 60% Vested
4 Years - 80% Vested
5 Years - 100% Vestcd
There will be no additional leMA Retirement Corporation Management fees associated with thc
employees' 401 Money Purchase Program.
James DiPietro
City Manager
(PJfeOM 12101/91)
m:pw
.....
,
ICMA RETIREMENT CORPORATION
PROTOTYPE MONEY PURCHASE PLAN & TRUST
ADOPTION AGREEMENT
#001
Account Number
q8~3
q s :;/1-
The Employer hereby establishes a Money Purchase Plan and Trust to be known as City of Sunny
Isles Beach Employees Retirement plan (the "Plan") in the form of the ICMA Retirement
Corporation Prototype Money Purchase Plan and Trust.
This Plan is an amendment and restatement of an existing defined contribution money purchase plan.
o
Yes
[]I
No
If yes, please specify the name of the defined contribution money purchase plan which this Plan
hereby amends and restates:
NA
I.
Employer:
City of Sunny Isles Beach
II. Prototype Sponsor:
Name:
ICMA Retirement Corporation
Address:
777 N. Capitol Street, N.E.
Washington, D.C. 20002-4240
Telephone Number: (202) 962-4600
III. The Effective Date of the Plan shall be the first day of the Plan Year during which the
Employer adopts the Plan, unless an alternate Effective Date is hereby specified:
September 1997
IV. Plan Year will mean:
o The twelve (12) consecutive month period which coincides with the limita-
tion year. (See Section 6.050) of the Plan.)
1];1 The twelve (12) consecutive month period commencing on 10/01 and
each anniversary thereof.
MPP Adoption Agreement 12/23/94
001-94
.'
,
The Employer hereby elects to "pick up" the Mandatory/Required Participant
Contribution.
CJ
Yes
o
No
[Note to Employer: Neither an opinion letter issued by the Internal
Revenue Service with respect to the Prototype Plan, nor a determination
letter issued to an adopting Employer is a ruling by the Internal Revenue
Service that Participant contributions that are picked up by the Employer are
not includable in the Participant's gross income for federal income tax pur~
poses. The Employer may seek such a ruling.
Picked up contributions are excludable from the Participant's gross
income under section 414(h)(2) of the Internal Revenue Code of 1986 only
if they meet the requirements of Rev. Rut. 81~35, 1981~1 C.B. 255. Those
requirements are (1) that the Employer must specify that the contributions,
although designated as employee contributions, are being paid by the Em~
ployer in lieu of contributions by the employee; and (2) the employee must
not have the option of receiving the contributed amounts directly instead of
having them paid by the Employer to the plan.]
o Fixed Employer Match of Participant Contributions.
The Employer shall contribute on behalf of each ParticipantNA % ofEarn~
ings for the Plan Year (subject to the limitations of Articles V and VI of the
Plan) for each Plan Year that such Participant has contributed NA % of
Earnings or $ NA. Under this option, there is a single, fixed rate of Em~
ployer contributions, but a Participant may decline to make the required
Participant contributions in any Plan Year, in which case no Employer contri~
bution will be made on the Participant's behalf in that Plan Year.
o Variable Employer Match Of Participant Contributions.
The Employer shall contribute on behalf of each Participant an amount de~
termined as follows (subject to the limitations of Articles V and VI of the Plan):
~ % of the Participant contributions made by the Participant for
the Plan Year (not including Participant contributions exceeding NA % of
Earnings or $ NA);
PLUS ~ % of the contributions made by the Participant for the
Plan Year in excess of those included in the above paragraph (but not includ~
ing Participant contributions exceeding in the aggregate NA % of Earnings
or $ NA ).
Employer Contributions on behalf of a Participant for a Plan Year
shall not exceed $ NA or _ % of Earnings, whichever is 0 more or
o less.
.1
MPP Adoption Agreement 12/23/94
001-94
.
2, If the Participant is or has ever been a participant in a defined benefit plan main-
tained by the Employer, and if the limitation in Section 6.04 of the Plan would be
exceeded, then the Participant's Projected Annual Benefit under the defined benefit
plan shall be reduced in accordance with the terms thereof to the extent necessary to
satisfy such limitation. If such plan does not provide for such reduction, or if the
limitation is still exceeded after the reduction, annual additions shall be reduced to
the extent necessary in the manner described in Sections 6.01 through 6.03. The
methods of avoiding the limitation described in this paragraph will not apply if the
Employer indicates another method below.
o Other Method. (Note to Employer: Provide below language which will satisfy
the 1.0 limitati~n of section 415( e) of the Code. Such language must
preclude Employer discretion. See section 1.415-1 of the Regulations for
guidance. )
3. The limitation year is the following 12-consecutive month period:
X. VESTING PROVISIONS
The Employer hereby specifies the following vesting schedule, subject to (1) the minimum
vesting requirements as noted and (2) the concurrence of the Plan Administrator.
Years of Specified Minimum
Service Percent Vesting
Completed Vesting Requirements**
Vesting is Zero 0 % No minimum
calculated One 40 % No minimum
based upon Two 70 % No minimum
employee's Three 100 % Not less than 20%
hire date. Four 100 % Not less than 40%
Five 100 % Not less than 60%
Six 100 % Not less than 80%
Seven, or more 100 % Must equal 100%
(**These minimum vesting requirements conform to the Code's three to seven year vesting
schedule. If the employee becomes 100% vested by the completion of five years of service,
there is no minimum for years three and four.)
XI. Loans are permitted under the Plan, as provided in Article XIV:
o
Yes
~
No
MPP Adoption Agreement 12/23/94
001 -94
.
ADMINISTRATIVE SERVICES AGREEMENT
Type: 401
Account Number: 9853
Plan # 9853
ADMINISTRATIVE SERVICES AGREEMENT
This Agreement, made as of the ~- day of .J~uaKy
, 199~ (herein referred to as the "Inception Date"), between The Interna#onal
City Management Association Retirement Corporation ("RC"), a nonprofit corporation
organized and existing under the laws of the State of Delaware; and City of Sunny
Isles-1 ("Employer") a City organized and existing under the laws of the State of
Florida with an office at 7903 East Drive, North Bay Village, Florida 33141 .
Recitals
Employer acts as a public plan sponsor for a retirement plan ("Plan") with
responsibility to obtain investment alternatives and services for employees
participating in that Plan;
The ICMA Retirement Trust (the "Trust") is a common law trust governed
by an elected Board of Trustees for the commingled investment of retirement funds
held by state and local governmental units for their employees;
RC acts as !nvestment adviser to the Trust; RC has designed, and the
Trust offers, a series of separate funds (the "Funds") for the investment of plan
assets as referenced in the Trust's principal disclosure document, "Making Sound
Investment Decisions: A Retirement Investment Guide." The Funds are available
only to public employers and only through the Trust and RC.
In addition to serving as investment adviser to the Trust, RC provides a
complete offering of services to public employers for the operation of employee
retirement plans including, but not limited to, communications concerning investment
alternatives, account maintenance, account record-keeping, investment and tax
reporting, form processing, benefit disbursement and asset management.
Plan # 9853
Agreements
1.
AJ'lJ'lointmp.nt of RC
Employer hereby designates RC as Administrator of the Plan to perform
all non-discretionary functions necessary for the administration of the Plan with
respect to assets in the Plan deposited with the Trust. The functions to be performed
by RC include:
(a) allocation in accordance with participant direction of individual
accounts to investment Funds offered by the Trust;
(b) maintenance of individual accounts for participants reflecting
amounts deferred, income, gain, or loss credited, and amounts disbursed as benefits;
(c) provision of periodic reports to the Employer and participants of the
status of Plan investments and individual accounts;
(d) communication to participants of information regarding their rights
and elections under the Plan; and
(e) disbursement of benefits as agent for the Employer in accordance
with terms of the Plan.
2.
AnoJ'ltion of Tn 1St
Employer has adopted the Declaration of Trust of the ICMA Retirement
Trust and agrees to the commingled investment of assets of the Plan within the Trust.
Employer agrees that operation of the Plan and investment, management and
disbursement of amounts deposited in the Trust shall be subject to the Declaration
of Trust, as it may be amended from time to time and shall also be subject to terms
and conditions set forth in disclosure documents (such as the Retirement Investment
Guide or Employer Bulletins) as those terms and conditions may be adjusted from time
to time. It is understood that the term "Employer Trust" as it is used in the
Declaration of Trust shall mean this Administrative Services Agreement.
3.
FmJ'lloyp.r Dllty to Fllrnish Information
Employer agrees to furnish to RC on a timely basis such information as
is necessary for RC to carry out its responsibilities as Administrator of the Plan,
including information needed to allocate individual participant accounts to Funds in
the Trust, and information as to the employment status of participants, and
participant ages, addresses and oth r identifying information (including tax
Plan # 9853
identification numbers). RC shall be entitled to rely upon the accuracy of any
information that is furnished to it by a responsible official of the Employer or any
information relating to an individual participant or beneficiary that is furnished by such
participant or beneficiary, and RC shall not be responsible for any error arising from
its reliance on such information. RC will provide account information in reports,
statements or accountings. All account discrepancies must be reported to RC within
120 days of the close of the quarter in which the discrepancy occurs. After that
time the report, statement, or accounting shall be deemed to have been accepted by
the Employer and the participants
4.
Cp.rt~in Rp.rrp.~p.nt~tif)n~, W~rr~ntip.~, ~nn Cnvp.n~nt~
RC represents and warrants to Employer that:
(a) RC is a non-profit corporation with full power and authority to enter
into this Agreement and to perform its obligations under this Agreement. The ability
of RC to serve as investment adviser to the Trust is dependent upon the continued
willingness of the Trust for RC to serve in that capacity.
(b) RC is an investment advis~r registered as such with the Securities
and Exchange Commission under ,the Investment Advisers Act of 1940, as amended.
ICMA-RC Services, Inc. (a wholly owned subsidiary of RC) is registered as a broker-
dealer with the Securities and' Exchange Commission (SEC) and is a member in good
standing of the National Association of Securities Dealers, Inc.
RC covenants with employer that:
(c) RC shall maintain and administer the Plan in compliance with the
requirements for plans which satisfy the qualification requirements of Section 401 of
the Internal Revenue Code; provided, however, RC shall not be responsible for the
qualified status of the Plan in the event that the Employer directs RC to administer the
Plan or disburse assets in a manner inconsistent with the requirements of Section 401
or otherwise causes the Plan not to be carried out in accordance with its terms;
provided, further, that if the plan document used by the Employer contains terms that
differ from the terms of RC's standardized plan document, RC shall not be responsible
for the qualified status of the Plan to the extent affected by the differing terms in the
Employer's plan document.
Employer represents and warrants to RC that:
(d) Employer is organized in the form and manner recited in the opening
paragraph of this Agreement with full power and authority to enter into and perform
its obligations under this Agreement an to act for the Plan and participants in the
Plan # 9853
manner contemplated in this Agreement. Execution, delivery, and performance of this
Agreement will not conflict with any law, rule, regulation or contract by which the
Employer is bound or to which it is a party.
5.
P~rtidr~tion in Cp.rt~in Pror.p.p.rlings
The Employer hereby authorizes RC to act as agent, to appear on its
behalf, and to join the Employer as a necessary party in all legal proceedings involving
the garnishment of benefits or the transfer of benefits pursuant to the divorce or
separation of participants in the Employer Plan. Unless the Employer notifies RC
otherwise, Employer consents to the disbursement by RC of benefits that have been
garnished or transferred to a former spouse, spouse or child pursuant to a domestic
relations order.
6.
Comrp.ns~tion ~nrl P~ymp.nt
(a) Plan Administration Fee. The amount to be paid for plan
administration services under this Agreement shall be 0.75% per annum of the
amount of Plan assets invested in the Trust. Such fee shall be computed based on
average daily net Plan assets in the Trust. 0
(b) Account Maintenance Fee. There shall be an annual account
maintenance fee of $25.00. The account maintenance fee is payable in full on
January 1 of each year on each account in existence on that date. For accounts
established after January 1, the fee is payable on the first day of the calendar quarter
following establishment and is prorated by reference to the number of calendar
quarters remaining on the day of payment.
(c) Mutual Fund Services Fee. There is an annual charge of 0.25% of
assets under management that are held in the Trust's Mutual Fund Series.
(d) Model Portfolio Fund Fee. There is an annual charge of 0.10% of
assets under management that are held in the Trust's Model Portfolio Funds.
(e) Compensation for Management Services to the Trust. Employer
acknowledges that in addition to amounts payable under this Agreement, RC receives
fees from the Trust for investment management services furnished to the Trust,
except that this fee is not assessed in the Mutual Fund Series
(f) Payment Procedures. All payments to RC pursuant to Section 6 shall
be paid out of the Plan Assets held by the Trust and shall be paid by the Trust. The
amount of Plan Assets held in the Trust shall be adjusted by the Trust as required to
reflect such payments.
Plan # 9853
7.
CII~tor:!y
Employer understands that amounts invested in the Trust are to be
remitted directly to the Trust in accordance with instructions provided to Employer
by RC and are not to be remitted to RC. In the event that any check or wire transfer
is incorrectly labeled or transferred to RC, RC will return it to Employer with proper
instructions.
8.
Rp.~roo~ihility
RC shall not be responsible for any acts or omissions of any person other
than RC in connection with the administration or operation of the Plan.
9.
Ierm
This Agreement may be terminated without penalty by either party on
sixty days advance notice in writing to the other.
10. Amp.nr:!mp.nt~ ;:lnr:! Ar:!jll~tmp.nt~
(a) This Agreement may not be amended except by written instrument
signed by the parties.
(b) The parties agree that compensation for services under this
Agreement and administrative and operational arrangements may be adjusted as
follows:
RC may propose an adjustment by written notice to the Employer given
at least 60 days before the effective date of the adjustment and the notice may
appear in disclosure documents such as Employer Bulletins and the Retirement
Investment Guide. Such adjustment shall become effective unless, within the 60 day
period before the effective date the Employer notifies RC in writing that it does not
accept such adjustment, in which event the parties will negotiate with respect to the
adjustment.
(c) No failure to exercise and no delay in exercising any right, remedy,
power or privilege hereunder shall operate as a waiver of such right, remedy, power
or privilege.
11 .- Noticp.~
All notices required to be delivered under Section 10 of this Agreement
shall be delivered personally or by registered or certified mail, postage prepaid, return
.
Plan # 9853
receipt requested, to (i) Legal Department, ICMA Retirement Corporation, 777 North
Capitol Street, N.E., Suite 600, Washington, D.C, 20002-4240; (ii) Employer at the
office set forth in the first paragraph hereof, or to any other address designated by
the party to receive the same by written notice similarly given.
12. Comr1p.tp. Agrp.p.mp.nt
This Agreement shall constitute the sole agreement between RC and
Employer relating to the object of this Agreement and correctly sets forth the
complete rights, duties and obligations of each party to the other as of its date. Any
prior agreements, promises, negotiations or representations, verbal or otherwise, not
expressly set forth in this Agreement are of no force and effect.
13. Govp.rning LrlW
This agreement shall be governed by and construed in accordance with
the laws of the State of Florida applicable to contracts made in that jurisdiction
without reference to its conflicts of laws provisions.
In Witness Whereof, the parties hereto have executed this Agreement
as of the Inception Date first above written.
CITY OF SUNNY ISLE~
by: t..O ~~?
S nature/Date
~es- D/R~]7l (J
C7Y K~AHT/2-
Name and Title (Please Print)
INTERNATIONAL CITY MANAGEMENT
ASSOCIA-r~N RETIREMENT
CORPO TI Nfl ~
by: ~ (;. \ J-c/ , ~e
Stephen Wm. Nordholt/Da~
Corporate Secretary
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