Loading...
HomeMy WebLinkAboutReso 99-165RESOLUTION NO. 99-_L�5 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO REVISE THE ICMA RETIREMENT CORPORATION'S MAMAGEMENT EMPLOYEES' 401 MONEY PURCHASE RETIREMENT PLAN AND TRUST ADOPTION AGREEEMENT AS ESTABLISHED IN ACCORDANCE WITH RESOLUTION NO. 97-22, TO PROVIDE FOR EMPLOYEE MATCHING CONTRIBUTIONS AND SUCH OTHER CHANGES AS DEEMED APPROPRIATE; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on November 20, 1997, by Resolution No. 97-22, the City Manager adopted the ICMA employees 401 Money Purchase Retirement Plan, which, among other things did not provide for employee matching contributions; and WHEREAS, the Interim City Manager has request feedback from employees as to whether or not they would wish for that provision and received an affirmative answer; NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Section 1. The City Manager is authorized to revise the ICMA Retirement Corporation's Management Employees 401 Money Purchase Retirement Plan and Trust Adoption Agreement to provide for employee matching contribution and make such other changes as he deems appropriate. Section 2. Effective Date. This Resolution shall become effective upon adoption. PASSED AND ADOPTED thVIA61 day of Octoer, 1999. David Samson, ATTEST: &Ct� chard Brown Morilla, City Clerk Authorization to Amend 401 K Plan Management Res 10/06/99 9:07 AM LMD:ch APPROVED AS TO FORM AND LEGAL SUFFICIENCY ,5-7�,L Lofi M. Dannheisser, City Attorney Moved by: �°w•::.h�v.o�. Seconded by: czl�— VOTE: S..--0 Mayor Samson ✓ (Yes) (No) Vice Mayor Turetsky s/ (Yes) (No) Commissioner Iglesias c/ (Yes) (No) Commissioner Kauffman (Yes) (No) Commissioner Morrow— (Yes) (No) Authorization to Amend 401K Plan Management Res 2 10/05/99 4:40 PM LMD:ch ICMA RETIREMENT CORPORATION PROTOTYPE MONEY PURCHASE PLAN & TRUST ADOPTION AGREEMENT #001 Account Number l 9 5S The Employer hereby establishes a Money Purchase Plan and Trust to be known as City of Sunny s Beach Mgmt. Emp. 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. Z) Yes 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: August 1997 IV. Plan Year will mean: ❑ The twelve (12) consecutive month period which coincides with the limita- tion year. (See Section 6.05(i) of the Plan.) The twelve (12) consecutive month period commencing on 10 / 01 and each anniversary thereof. MPP Adoption Agreement 12/23/94 001-94 V. Normal Retirement Age shall be age 54 (not to exceed age 65). VI. ELIGIBILITY REQUIREMENTS: The following group or groups of Employees are eligible to participate in the Plan: All Employees All Full -Time Employees Salaried Employees Non -union Employees X Management Employees Public Safety Employees General Employees Other (specify below) The group specified must correspond to a group of the same designation that is defined in the statutes, ordinances, rules, regulations, personal manuals or other material in effect in the state or locality of the Employer. 2. The Employer hereby waives or reduces the requirement of a twelve (12) month Period of Service for participation. The required Period of Service shall be NA (write N/A if an Employee is eligible to participate upon employment). If this waiver or reduction is elected, it shall apply to all Employees within the Covered Employment Classification. 3. A minimum age requirement is hereby specified for eligibility to participate. The minimum age requirement is NA (not to exceed age 21. Write N/A if no minimum age is declared.) VII. CONTRIBUTION PROVISIONS The Employer shall contribute as follows (choose one, if applicable): d Fixed Employer Contributions With Or Without Mandatory Participant Contributions. The Employer shall contribute on behalf of each Participant 10 % of Earnings or $-0 for the Plan Year (subject to the limitations of Article VI of the Plan). Each Participant is required to contribute 0 % of Earnings or $ 0 for the Plan Year as a condition of participation in the Plan. (Write "0" if no contribution is required.) If Participant Contributions are required under this option, a Participant shall not have the right to discontinue or vary the rate of such contributions after becoming a Plan Participant. 4, MPP Adoption Agreement 12/23/94 H 001-94 The Employer hereby elects to "pick up" the tvlandatory/Required Participant Contribution. 0 Yes ❑ 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.] ❑ Fixed Employer Match of Participant Contributions. The Employer shall contribute on behalf of each Participant NA % of Earn- 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. ❑ 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): NA % of the Participant contributions made by the Participant for the Plan Year (not including Participant contributions exceeding NA % of Earnings or $ NA ); PLUS NA % 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 ❑ more or ❑ less. 5 MPP Adoption Agreement 12/23/94 001-94 Each Participant may make voluntary (unmatched), after-tax contribution, subject to the limitations of Section 4.05 and Articles V and VI of the Plan. Yes ❑ No Employer contributions and Participant contributions shall be contributed to the Trust in accordance with the following payment schedule: Monthly VIII. EARNINGS Earnings, as defined under Section 2.09 of the Plan, shall include: (a) Overtime ❑ Yes Q No (b) Bonuses ❑ Yes Q No IX. LIMITATION ON ALLOCATIONS If the Employer (i) maintains or ever maintained another qualified plan in which any Par- ticipant in this Plan is (or was) a participant or could possibly become a participant, and/or (ii) maintains a welfare benefit fund (as defined in section 419(e) of the Code) or an indi- vidual medical account (as defined in section 415(1)(2) of the Code, under which amounts are treated as Annual Additions with respect to any Participant in this Plan) the Employer hereby agrees to limit contributions to all such plans as provided herein, if necessary in order to avoid excess contributions (as described in Sections 6.03 and 6.04 of the Plan). If the Participant is covered under another qualified defined contribution plan maintained by the Employer, other than a Regional Prototype Plan, the provisions of Section 6.02(a) through (f) of the Plan will apply as if the other plan were a Master Prototype Plan, unless another method has been indicated below. ❑ Other Method. (Provide the method under which the plans will limit total Annual Additions to the Maximum Permissible Amount, and will properly reduce any excess amounts, in a manner that precludes Employer discretion.) NA 110 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. G Other Method. (Note to Employer: Provide below language which will satisfy the 1.0 limitation 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" Zero 100 % No minimum One 1Qn % No minimum Two 100 % No minimum Three 100 % Not less than 20% 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: Yes No MPP Adoption Agreement 12/23/94 001-94 XII. The Employer hereby attests that it is a unit of state or local government or an agency or instrumentality of one or more units of state or local government. X1I1. The Prototype Sponsor hereby agrees to inform the Employer of any amendments to the Plan made pursuant to Section 15.05 of the Plan or of the discontinuance or abandonment of the Plan. XIV The Employer hereby appoints the Prototype Sponsor as the Plan Administrator pursuant to the terms and conditions of the ICMA RETIREMENT CORPORATION PROTOTYPE MONEY PURCHASE PLAN & TRUST. The Employer hereby agrees to the provisions of the Plan and Trust. XV. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption Agreement may result in disqualification of the Plan. XVI. An adopting Employer may not rely on a notification letter issued by the National or District Office of the Internal Revenue Service as evidence that the Plan is qualified under section 401 of the Internal Revenue Code. In order to obtain reliance with respect to plan qualification, the Employer must apply to the appropriate key district office for a determination letter. This Adoption Agreement may be used only in conjunction with basic Plan document number 001. In Witness Whereof, the Employer hereby causes th' greement to be executed on this /'^ day of , 19� EMPLOYER Accepted: ICMMA\RE BY:. IvIENT CORPORATION By: t�. V -�-� Title: City Manager Title: Corporate cretary Attest"=^^L� GL� Atte ti W O 19 MPP Adoption Agreement 12/23/94 001-94 ADMINISTRATIVE SERVICES AGREEMENT Type: 401 Account Number: 9854 �� q Plan # 9854 Agreements 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. 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. 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 other identifying information (including tax 10 Plan # 9854 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 be 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 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 adviser 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 # 9854 ADMINISTRATIVE SERVICES AGREEMENT This Agreement, made as of the ?7�, day of J4AI0-a , 199?" (herein referred to as the Inception Date"), between The International 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 ("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 investment 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 # 9854 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. 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. (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. (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) Annual Plan Fee. There shall be an annual Employer fee of $1,000.00. The annual Plan Fee will be billed evenly on a quarterly basis and is payable within 30 days of receipt of billing. Plans which are initially established midyear will be billed on a pro-rata basis. (d) 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. (e) 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. (f) 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 t e Mutual Fund Series 13 Plan # 9854 (g) Payment Procedures. (i) All payments to RC pursuant to Section 6(a), (b), (d) and (e) 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. (ii) All payments to RC pursuant to Section 6(c) shall be paid directly by Employer, and shall not be deducted from Plan Assets held by the Trust. 7. Custod-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. 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. This Agreement may be terminated without penalty by either party on sixty days advance notice in writing to the other. Me EvirerewMeMP-10111:1011P (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, Plan # 9854 power or privilege hereunder shall operate as a waiver of such right, remedy, power or privilege. 11. Notorps 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 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. 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. 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. �5 Plan # 9854 In Witness Whereof, the parties hereto have executed this Agreement as of the Inception Date first above written. CITY j0FS?U1,ISLES by: S nature/Date ��11�� L �AiMe S D�r;s o ��TY �Aiti�r�z Name and Title (Please Print) INTERNATIONAL CITY MANAGEMENT ASSOC[ TION RETIREMENT CORP RATION by: �.,. Stephen Wm. Nordholt/Da Corporate Secretary O�� I(V City of Sunny Isles Beach 6� 17070 Collins Avenue, Suite 250 Sunny Isles Beach, Florida 33160 (305)947.0606 phone (305)949-3113 fax David Samson Mavor To: City Commission Irving Turetsky Vice Maur From: City Manager Commissioners Date: October 14. 1999 Danny Iglesias ' Lila Kaufman Connie Morrow Subject: INTERNATIONAL CITY MANAGEMENT ASSOCIATION RETIREMENT CORPORATION MANAGEMENT EMPLOYEES 401 City Manager MONEY PURCHASE RETIREMENT PLAN AND TRUST ADOPTION AGREEMENT Lynn D7. Dannheisser City Attorney RECOMMENDATION It is recommended that the City Commission authorize the City Manager to revise the plan as established in accordance with Resolution No. 97-22, adopted November 20, 19997, to provide that management employees may contribute to the plan as other staff are permitted to do so. REASONS When the former City Manager recommended the adoption of the above referenced Resolution, it denied all management employees the benefit of tax deferred contributions which all non -management employees make. ADDITIONAL INFORMATION Contributions by employees enhance the value ofthe retirement plan and enable employees to increase their retirement account at no additional cost to the City. There are other provisions that also benefit employees in the management of their retirement plan that have no additional cost to the City or additional burden for the Finance Department which administers the plan. The authority granted to the Manager by Resolution No. 97-22 needs no changes, but this resolution will provide the basis for remedying the inequity of the Management as regards to those covered by it. Respectfully submitted, Jack Neustadt Interim City Manager JN:pw DATE: November 20, 1997 TO: City Commission FROM: City Manager SUBJECT: INTERNATIONAL CITY MANAGEMENT ASSOCIATION MANAGEMENT EMPLOYEES 401 MONEY PURCHASE RETIREMENT PLAN AND TRUST ADOPTION AGREEMENT RECOMMENDATION It is recommended that the City Commission adopt, by resolution, the attached ICMA Management Employees 401 Money Purchase Retirement Plan. REASONS When the City Attorney was hired, in August 1997, the City Commission anticipated providing City contributions into a retirement plan. The same concept was included in the City Manager's agreement and an amount equal to 10% of annual salary was specified. The proposed agreement accomplishes the purpose of establishing a retirement plan for both employees, and permits other Department Heads to join at a later date. Setting up the program now, 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 payment to the date of hire. The management plan allows the employees to be immediately vested. There is no employee matching contribution. The City of Key Biscayne contributes 11% into a similar program. The Village of Pinecrest pays 10% and Aventura provides a 12% benefit. There is an annual management fee paid to ICMA Retirement Corporation not to exceed $1,000. However, as other 401 or 457 Plans are added, (i.e., General and Police Employees) there will be no additional fees. Respectfully submitted James DiPietro City Manger (Effective 12101097) JD:pw RESOLUTION NO. 97-22 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, RELATING TO PENSIONS AND RETIREMENT, AUTHORIZING THE ESTABLISHMENT OF A MANAGEMENT LEVEL EMPLOYEE 401 MONEY PURCHASE PLAN; AUTHORIZING THE 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 OTHER THINGS AS ARE NECESSARY TO ESTABLISH SAID PLAN; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Sunny Isles Beach, Florida, has employees rendering valuable public service; and WHEREAS, the City Commission of the City of Sunny Isles Beach desires to establish a Money Purchase Retirement Plan which will benefit management level 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 management level employees, including the City Manager, the City Attorney and department heads to be determined, 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 pan 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.?2 I� (b) Serve as coordinator of the Plan, receive necessary reports, notices and similar communications from the ICMA Retirement Corporation or ICMA Retirement 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, provided further, however, that the management fee will not exceed $1,000.00 per year. Section 5. This Resolution shall become effective upon adoption. PASSED AND ADOPTED this 20th day of November, 199 David Samson, ATTEST: Jonda K J eph Interim City Clerk: l- APPROVED AS TO FORM AND LEGAL SUFFICIENCY Lyfin M. Dannheisser City Attorney ma -it \,"\ Csm .�SiCwW vle v `` Vote: Mayor Samson ✓ (Yes) (No) Vice Mayor Turetsky ✓ (Yes) (No) Commissioner Iglesias ✓ (Yes) (No) Commissioner Kauffman ✓ (Yes) (No) Commissioner Morrow ✓ (Yes) (No) M97-2? RESOLUTION NO.97-23 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, RELATING TO PENSIONS AND RETIREMENT, AUTHORIZING THE ESTABLISHMENT OF AN ALL EMPLOYEES 401 MONEY PURCHASE PLAN; AUTHORIZING THE 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 OTHER 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 �q (b) Serve as coordinator of the Plan, receive necessary reports, notices and similar communications from the ICMA Retirement Corporation or ICMA Retirement Trust, cast, on behalf of the City, any required votes under the ICMA Retirement Trust; and ;O] (d) Section 5. Delegate any administrative duties relating to the Plan to appropriate departments of the City; and Execute all necessary documents, instruments and agreements with the ICMA Retirement Corporation reasonable and necessary in the administration of the Plan. This Resolution shall become effective upon adoption. PASSED AND ADOPTED this 20i° day of November, 1997 ATTEST: jonda K Jose ;Iriferim,Gify Clerk APPROVED AS TO FORM AND LEGAL SUFFICIENCY G� L M. Dannheisser City Attorney CCv.,.. %Ss Vnea mw6vJ Vote: Mayor Samson ✓ (Yes) Vice Mayor Turetsky ✓ (Yes) Commissioner Iglesias (Yes) Commissioner Kauffman (Yes) Commissioner Morrow (Yes) RM97-23 (No) (No) (No) (No) (No) l 11/06/1997 13:01 305-756-7722 NOPTH 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 RECOMMENDATION It is recommended that the City Commission adopt, by resolution, the attached ICMA 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 recommended 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) 1 Year 40% vested B) 2 Years 70% vested C), 3 Years - 100%-vested must match the City's 10% payment with their own 4% contribution. 2� 11/06/1997 13:01 305-756-7722 City Commission November 20, 1997 Page 2 NORTH BAY VILLAGE By comparison, vesting schedules and employee matches of other cities are as follows: A) Aventura B) Key Biscayne C) Pinecrest 12% City Contribution 0% Employee Contribution 3 Years - 20% Vested 4 Years - 40% Vested 5 Years - 60% Vested 6 Years - 80% Vested 7 Years - 1000/9 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°/6 Vested 4 Years - 90% Vested 5 Years - 100% Vested PAGE 03 There will be no additional ICMA Retirement Corporation Management fees associated with the employees' 401 Money Purchase Program. Respectfull submitte James DiPictro City Manager JD:pw 2-2-