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CC Resolution 11060 RESOLUTION NO. 11060 A RESOLUTION AMENDING THE MONEY PURCHASE PLAN & TRUST AGREEMENT 401 (a) PLAN #107599 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 an amendment of the existing 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 amended 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 IF FURTHER RESOLVED that the City of Campbell hereby authorizes the Human Resources Manager to execute all necessary agreements with the ICMA Retirement Corporation incidental to the administration of the Plan. PASSED AND ADOPTED, this call vote: 21st day of July, 2009 by the following roll AYES: Councilmembers: Kotowski, Furtado, Baker, Low, Kennedy NOES: Councilmembers: None ABSENT: Council members: None APPROVED: ATTEST: \ I ; ~ Anne Bybee, City Clerk ICMA RETIREMENT CORPORATION GOVERNMENTAL MONEY PURCHASE PLAN & TRUST ADOPTION AGREEMENT ATTACHMENT #01 PLAN NAME AND NUMBER City of Campbell, CA PLAN 107599 VI. Contribution Provision: Effective Date: Julv 1. 2009 Fixed Employer Contributions With Or Without Mandatory Participant Contribution. The Employer shall contribute on behalf of each participant the following amounts for the Plan Year. Emplover Rate Emplovee Ranqe Executive Staff $780.00(Annually) 5% and 20% Mid-Management 0% 1% and 15% The Employer hereby elects to "pick up" the Mandatory Participant Contributions. x Yes No EMPLOYER lCMA RETIREMENT CORPORATION 777 North Capital St., NE Washington, DC 20002-4290 By: J~~~ ::~a:U;:ager ~ee, Clty Clerk By: Title: Attest: ICMA RETIREMENT CORPORATION GOVERNMENTAL MONEY PURCHASE PLAN & TRUST ADOPTION AGREEMENT PLAN NUMBER 10-7599 The Employer hereby establishes a Money Purchase Plan and Trust to be known as Citv of Campbell (the "Plan") in the form of the ICMA Retirement Corporation Governmental Money Purchase Plan and Trust (MPP 01/01/06). This Plan is an amendment and restatement of an existing defined contribution money purchase plan. x Yes No If yes, please specify the name of the defined contribution money purchase plan which this Plan hereby amends and restates: Effective Date: Summary of Change: July 1,2009 Contribution Provisions / Final Pay Attachment I. Employer: Citv of Campbell 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: 1/1/2000 (e.g., January 1,2006 for the MPP 01/01/06 Plan) III. Plan Year will mean: (X) The twelve (12) consecutive month period which coincides with the limitation year. (See Section 5.03(t) of the Plan.) ( ) The twelve (12) consecutive month period commencing on _ and each anniversary thereof. IV. Normal Retirement Age shall be age ~ (not to exceed age 65). * Age 50 for Safety Employees and Age 55 for Miscellaneous Employees MPP 01/01/06 V. ELIGIBILITY REQUIREMENTS 1. The following group or groups of Employees are eligible to participate in the Plan: x All Employees All Full-Time Employees Executive Staff Non-union Employees Mid-Management Employees Public Safety Employees General Employees Other (specify below) x 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). 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 N/A (not to exceed age 21. Write N/A ifno minimum age is declared.) VI. CONTRIBUTION PROVISIONS 1. The Employer shall contribute as follows (choose all that apply): (X) Fixed Employer Contributions With or Without Mandatory Participant Contributions. A. Fixed Employer Contributions. The Employer shall contribute on behalf of each Participant (See Attachment) % of Earnings for the Plan Year. (subject to the limitations of Article V ofthe Plan). Mandatory Participant Contributions l are required are not required to be eligible for this Employer Contribution. MPP 01/01/06 2 B. Mandatory Participant Contributions for Plan Participation. A Participant is required to contribute (subject to the limitations of Article V of the Plan) (i) % of Earnings, (ii) $ , or (iii) a whole percentage of Earnings between the range of (See Attachment) (insert range of percentages between 0% and 20% (e.g., 3%, 6%, or 20%; 5% to 7%)), as designated by the Employee in accordance with guidelines and procedures established by the Employer for the Plan Year as a condition of participation in the Plan. A Participant shall not have the right to discontinue or vary the rate of such contributions after becoming a Plan Participant. The Employer hereby elects to "pick up" the Mandatory Participant Contributions.! x Yes No ( ) Fixed Employer Match of Voluntary Participant Contributions. The Employer shall contribute on behalf of each Participant _% 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 which case no Employer contribution will be made on the Participant's behalf in that Plan Year. ( ) Variable Employer Match of Voluntary 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): 1 Neither an IRS advisory letter 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 purposes. MPP 01/01/06 3 _% of the Voluntary Participant 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 for the Plan Year in excess of those included in the above paragraph (but not including Voluntary Participant Contributions exceeding in the aggregate _ % of Earnings or $ ). Employer Matching Contributions on behalf of a Participant for a Plan Year shall not exceed $ or _% of Earnings, whichever is_ more or less. 2. Each Participant may make a voluntary (unmatched), after-tax contribution, subject to the limitations of Section 4.05 and Article V of the Plan. X Yes No 3. Employer contributions shall be contributed to the Trust in accordance with the following payment schedule: Bi-Weeklv 4. Participant contributions shall be contributed to the Trust in accordance with the following payment schedule: Bi- W eeklv VII. EARNINGS Earnings, as defined under Section 2.09 of the Plan, shall include: (a) Overtime Yes ~ No (b) Bonuses Yes ~ No (c) Other MPP 01/01/06 4 VIII. The Employer will permit rollover contributions in accordance with Section 4.09 ofthe Plan. x Yes No IX. LIMITATION ON ALLOCATIONS 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 of the Plan). 1. If the Participant is covered under another qualified defined contribution plan maintained by the Employer, the provisions of Section 5.02(a) through (f) of the Plan will apply 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.) N/A 2. The limitation year is the following 12-consecutive month period: N/A X. VESTING PROVISIONS The Employer hereby specifies the following vesting schedule, subject to (1) the minimum vesting requirements and (2) the concurrence of the Plan Administrator. Years of Service Completed Percent Vested Zero One Two Three Four Five Six Seven Eight Nine Ten --1Q!L % % % % % % % % % % % MPP 01/01/06 5 XI. Loans are permitted under the Plan, as provided in Article XVII: X Yes No XII. Age 70-1/2 in-service distributions are permitted under the Plan as provided in Section 9.08. x Yes (Default) No XIII. In-service distributions of the Rollover Account are permitted under the Plan as provided in Section 9.07. Yes x No XIV. SPOUSAL PROTECTION The Plan will provide the following level of spousal protection (select one): A. Participant Directed Election. The normal form of payment of benefits under the Plan is a lump sum. The Participant can name any person(s) as the Beneficiary of the Plan, with no spousal consent required. X B. Beneficiary Spousal Consent Election (Article XII). The normal form of payment of benefits under the Plan is a lump sum. Upon death, the surviving spouse is the Beneficiary, unless he or she consents to the Participant's naming another Beneficiary. (This is the default provision under the Plan ifno selection is made.) (Default) C. QJSA Election (Article XVII). The normal form of payment of benefits under the Plan is a 50% qualified joint and survivor annuity with the spouse (or life annuity, if single). In the event of the Participant's death prior to commencing payments, the spouse will receive an annuity for his or her lifetime. XV. 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. XVI. 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 ofthe discontinuance or abandonment of the Plan. XVII. The Employer hereby appoints the ICMA Retirement Corporation as the Plan Administrator pursuant to the terms and conditions of the ICMA RETIREMENT CORPORATION GOVERNMENTAL MONEY PURCHASE PLAN & TRUST. The Employer hereby agrees to the provisions of the Plan and Trust. MPP 01/01/06 6 XVIII. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption Agreement may result in disqualification of the Plan. XIX. An adopting Employer may rely on an advisory letter issued by the Internal Revenue Service as evidence that the Plan is qualified under section 401 of the Internal Revenue Code to the extent provided in applicable IRS revenue procedures and other official guidance. In Witness Whereof, the Employer hereby causes this Agreement to be executed on this 21st day of ,Tll 1 Y ,200~... EMPLOYER ICMA RETIREMENT CORPORATION 777 North Capital St., NE Washington, DC 20002-4290 202-962-8096 By: ~QL~~.~ ' ~~~ Lopez ~ ~r Anne Bybee, City Clerk By: Title: Title: Attest: Attest: MPP 01/01/06 7 H:IOl10701000011MONEY PURCHASE ADOPT AGREE -2006 RESTATEMENT DOC Page 1 of3 ATTACHMENT TO THE CITY OF CAMPBELL (107599) GOVERNMENTAL MONEY PURCHASE PLAN AND TRUST ADOPTION AGREEMENT XV. FINAL PAY CONTRIBUTIONS The Plan will provide for Final Pay Contributions if either 1 or 2 below is selected. Final Pay shall be defined as (select one): A. D Accrued unpaid vacation B. D Accrued unpaid sick leave C. ~ Accrued unpaid vacation and sick leave D. D Other (insert definition offinal pay) that would otherwise be payable to the Employee in cash upon termination. D 1. Employer Final Pay Contribution. The Employer shall contribute on behalf of each Participant % of Final Pay to the Plan (subject to the limitations of Article V of the Plan). D 2. Employee Designated Final Pay Contribution. Each Employee eligible to participate in the Plan shall be given the opportunity at enrollment to irrevocably elect to contribute _% (insert fixed percentage of final pay to be contributed) or up to 100 % (insert maximum percentage offinal pay to be contributed) of Final Pay to the Plan (subject to the limitations of Article V of the Plan). Once elected, an Employee's election shall remain in force and may not be revised or revoked. If the employer elects to "pick up" these amounts, in no event does the Employee have the option of receiving the pick-up contribution amount directly. The Employer hereby elects to "pick up" the Employee Designated Final Pay Contribution thereby treating such contributions as Employer-made contributions for federal income tax purposes. DYes D No Page 2 of3 XVI. ACCRUED LEAVE CONTRIBUTIONS The Plan will provide for accrued unpaid leave contributions if either I or 2 is selected below. Accrued Leave shall be defined as (select one): A. D Accrued unpaid vacation B. D Accrued unpaid sick leave C. D Accrued unpaid vacation and sick leave D. D Other (insert definition offinal pay) D 1. that would otherwise be payable to the Employee in cash. Employer Accrued Leave Contribution. The Employer shall contribute as follows (choose one of the following options): D For each Plan Year, the Employer shall contribute on behalf of each Eligible Participant the unused Accrued Leave in excess of (insert number of hours/days/weeks) to the Plan (subject to the limitations of Article V of the Plan). D For each Plan Year, the Employer shall contribute on behalf of each Eligible Participant % of unused Accrued Leave to the Plan (subject to the limitations of Article V of the Plan). D 2. Employee Designated Accrued Leave Contribution. Each eligible Participant shall be given the opportunity at enrollment to irrevocably elect to contribute _ % (insert fixed percentage of accrued unpaid leave to be contributed) or up to % (insert maximum percentage of accrued unpaid leave to be contributed) of Accrued Leave to the Plan (subject to the limitations of Article V of the Plan). Once elected, an Employee's election shall remain in force and may not be revised or revoked. If the employer elects to "pick up" these amounts, in no event does the Employee have the option of receiving the pick-up contribution amount directly. The Employer hereby elects to "pick up" the Employee Designated Final Pay Contribution thereby treating such contributions as Employer-made contributions for federal income tax purposes. DYes D No Page 3 of3 In order to allow for Final Pay Contributions and/or Accrued Leave Contributions, as defined above, the Plan must also include additional sources of ongoing contributions, such as Fixed Employer Contributions or Mandatory Participant Contributions. In accordance with IRS Guidance, ICMA-RC will not process Final Pay Contribution or Accrued Leave Contribution Features as part of a "Stand Alone" Final Pay Plan. In Witness Whereof, the Employer hereby causes this Agreement to be executed on this 21st <:Jay of July 200 9 , EMPLOYER Name (please print): Jill Lopez Signature: ~ ~~( Title: Human Resources Manager Date: /) \?- J.-\QC\ . \