CC Resolution 9778
RESOLUTION NO. 9778
Account Number 107750
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
RELATING TO A MONEY PURCHASING PLAN
WHEREAS, the City of Campbell has employees rendering valuable services;
and
WHEREAS, the establishment of a money purchase retirement plan benefits
employees by providing funds for retirement and funds for their beneficiaries in the event
of death; and
WHEREAS, the City of Campbell desires that its money purchase retirement plan
be administered by the ICMA Retirement Corporation and that the funds held in such
plan be invested in the ICMA Retirement Trust, a trust established by public employers
for the collective investment of funds held under their retirement and deferred
compensation plans;
NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby authorizes
the establishment of a money purchase retirement plan (the "Plan") in the form of:
The ICMA Retirement Corporation Governmental Money Purchase & Trust,
pursuant to the specific provisions of the Adoption Agreement (executed copy
attached hereto).
The Plan shall be maintained for the exclusive benefit of eligible employees and their
beneficiaries; and
BE IT FURTHER RESOLVED that the City of Campbell hereby executes the
Declaration of Trust of the ICMA Retirement Trust, and attached hereto, intending this
execution to be operative with respect to any retirement or deferred compensation plan
subsequently established by the City of Campbell, if the assets of the plan are to be
invested in the ICMA Retirement Trust;
BE IT FURTHER RESOLVED that the City of Campbell hereby agrees to serve
as trustee under the Plan and to invest funds held under the Plan in the ICMA
Retirement Trust; and
BE IT FURTHER RESOLVED that the Personnel Manager shall be the
coordinator for the Plan; shall receive reports, notices, etc. from the ICMA Retirement
Corporation or the ICMA Retirement Trust; shall cast, on behalf of the City of Campbell
any required votes under the ICMA Retirement Trust; may delegate any administrative
duties relating to the Plan to appropriate departments; and
BE IF FURTHER RESOLVED that the City of Campbell hereby authorizes the
Personnel Manager to execute all necessary agreements with the ICMA Retirement
Corporation incidental to the administration of the Plan.
Resolution - Money Purchase Plan
Page 2
PASSED AND ADOPTED THIS 11 th day of December 2000, by the following
roll call vote:
Ayes:
Councilmembers: Dougherty, Furtado, Watson, Dean, Kennedy
Nos:
Council members: None
Absent:
Councilmembers: None
APPROVED:
ATTEST:
tL~
Anne Bybee, City Clerk
ICMA RETIREMENT CORPORATION
GOVERNMENTAL MONEY PURCHASE PLAN & TRUST
ADOPTION AGREEMENT
Account Number 10- 7750
The Employer hereby establishes a Money Purchase Plan and Trust to be known as (the "Plan ") in the
form of the ICMA Retirement Corporation Governmental Money Purchase Plan and Trust. The Plan
shall be known as:
City of Campbe 11 - City Manager - Money Purchase Plan 19()(,1
This Plan is an amendment and restatement of an existing defined contribution money purchase plan,
o
Yes
a
No
If yes, please specify the name of the defined contribution money purchase plan which this PLm
hereby amends and restates:
L
Employer Name:
City of Campbell
19011
II. 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:
III. Plan Year will mean:
n The twelve (12) consecutive month period which coincides with the limita-
tion year, (See Section S'()4(i) of the Plan,) [8031
o The twelve (12) consecutive month period commencing on
and each anniversary thereafter. 18051
IV
Normal Retirement Age (not to exceed age 65) shall be age 50
InRI
V ELIGIBILITY REQUIREMENTS:
L The following group(s) of Employees are eligible to participate in the Plan:
----X..-
All Employees
All Full-Time Employees
Salaried Employees
Non-union Employees
Management Employees
Public Safety Enlployees
General Employees
Other (specifY below):
City Manager
MPP Adoption Agreement 4/311/21J()1I
The group specified must correspond to a group of the same designation that is defined
in the statutes, ordinances, rules, regulations, personnel 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 N/A
write N/ A if an Employee is eligible to participate upon employment). /344/
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 specifi~d for eligibility to participate. The
minimum age requirement is H1.A- (not to exceed age 21) . Write N / A if no mini-
mum age is declared.
(341(
VI. CONTRII3UTION PROVISIONS
1. The Employer shall contribute as follows (choose one):
~ Fixed Employer Contributions With Or Without Mandatory
Participant Contributions.
The Employer shall contribute on behalf of each Participant _ % of
earnings or $ 910 for the Plan Year (subject to the limitations
of Article V of the Plan). Each Participant is required to contribute
1.O....L % of earnings or $ 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 contribu-
tions after becoming a Plan Participant.
The Employer hereby elects to "pick up" the Mandatory/Required
Participant Contribution.
",
Xi
Yes
o No
(62 1/
The pick-up provision specifies that the contribution is treated, for
federal income tax purposes, as though it is made by the employer. The
pick-up provision allows the employee to deter taxes on the employee
mandatory contribution. The actual result is the same as if the contribu-
tion were a reduction in that employee's salary by the amount of the
contribution. Picked up contributions are NOT exempt fi-om Social
Security t;:lY
[Note to Employer: A determination letter issued to an adopting Em-
ployer is not 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 purposes. The
Employer may seek such a ruling.
:2
Ml'l' Adoption At':'-eclm-!1t 4/]()/:2()()1\
[Picked up contributions are excludable from the Participant's gross
income under section 414(h)(2) of the Internal Revenue Code of 19B6
only if they meet the requirements of Rev. Rul. 81-35, 1981-1 CU.255.
Those requirements are (1) that the Employer must specify that the
contributions, although designated as employee contributions, are being
paid by the Employer 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 Participant _<Xl of
Earnings for the Plan Year (subject to the limitations of Article V of the
Plan) for each Plan Year that such Participant has contributed %
of Earnings or $ . Under this option, there is a single, fixed rate
of Employer contributions, but a Participant may decline to make the
required Participant contributions in any Plan Year, in \vhich case no
Employer contribution 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
determined as follows (subject to the limitations of Article V of the
Plan) :
% of the contributions made by the Participant for the Plan
Year (not including Participant contributions exceeding % of
Earnings or $ );
PLUS % of the contributions made by the Participant tor the
Plan Year in excess of those included in the above paragraph (but not
including Participant contributions exceeding in the aggregate %
of Earnings or $ ).
Employer Contributions on behalf of a Participant for a Plan Year shall
not exceed $ or % of Earnings, whichever is
nlore or
less.
2. Each Participant may nuke a voluntary (unmatched), after-tax contribution, subject to
the limitations of Section 4.05 and Article V of the Plan.
fi
Yes
o No
MI'P Adoption Agreement 4/30/2000
3
3.
Employer contributions and Participant contributions shall be contributed to the Trust
in accordance with the following payment schedule: (please circle one choice)
~ Bi-We~
3 Bi-Monthly
6 Bi-Quarterly
9 Bi-Annually
/6///
1 Weekly
4 Monthly
7 Quarterly
10 Annually
2 Semi-Weekly
5 Semi-Monthly
8 Semi-Quarterly
11 Semi-Annually
VII. EARNINGS
Earnings, as defined under Section 2.09 of the Plan, shall include:
(a)
o
Yes
XJ No
Overtime
(b)
o
Yes
iJ No
Bonuses
VIII. LIMITATION ON ALLOCATIONS
4
If the Employer maintains or ever maintained another qualified plan in which any Participant in
this Plan is (or was) a participant or could possibly become a participant, 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 5.02 and 5.03 of the Plan).
1 . If the Participant is covered under another qualified defined contribution plan main-
tained by the Employer, the provisions of Section 5.02(a) through (f) of the Plan will
apply unless another method has been indicated below.
o 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 Em-
ployer discretion.)
2.
If the Participant is or has ever been a participant in a defined benefit plan maintained
by the Employer, and if the limitation in Section S.(J3 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 5.02 and 5.02. The methods of avoiding the limita-
tion described in this paragraph will not apply if the Employer indicates another method
below.
MPP Adoption Agrel'llll'Ilt -t-/J()/2()(1I1
o Other Method. (Note to Employer: Provide below language which
will s3.tisfy 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 ye3.r is the following 12-consecutive month period:
IX. 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
Service
Completed
Percent
Vesting
Zero
One
Two
Three
Four
Five
Six
Seven
Eight
Nine
Ten
~%
%)
()fc)
%
%
%
%
%
%
%
%
X. Loans are permitted under the Plan. as provided in Article XIII:
il
Yes
o
No
{751{
XI.
The Employer hereby attests that it is a unit of state or local government or an agency or
instrUll1entality of one or more units of sute or 10c3.l government.
XII.
The Plan Administrator hereby agrees to inform the Employer of any amendments to the
Plan made pursuant to Section 14.05 of the Plan or of the discontinuance or abandonment
of the Plan.
XIII.
The Employer hereby appoints the ICMA Retirement Corporation as the Plan Administra-
tor pursuant to the terms and conditions of the ICMA RETIREMENT CORPORA-
TION GOVERNMENTAL MONEY PURCHASE PLAN & TRUST.
The Employer hereby agrees to the provisions of the Plan and Trust.
MPP Adoption Agreement 4/3()/~()()()
~
XlV. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption
Agreement may result in disqualification of the Plan.
xv. An adopting Employer may not rely on a determination 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 Inter-
nal 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.
In Witness Whereof, the Employer hereby causes this Agreement to be executed on this ~ day of
:De( en? he /( ; 200-L2-.
ACCEPTED: ICMA RETIREMENT CORPORATION
t :;:j,i2~
Title: Corporate Secretary
,,:L9-vvvUL ec~~
Attest:
()
MPP Adoption Agreel1lent -l!3U/21)()()