HomeMy WebLinkAboutResolution No. 187SUGGESTED RESOLUTION FOR A LEGISLATIVE BODY
RELATING TO A DEFERRED COMPENSATION PLAN
RESOLUTION OF CITY OF MEDINA ("Employer').
RESOLUTION NO. 187
WHEREAS, the Employer has employees rendering valuable services; and
WHEREAS, the establishment of a deferred compensation plan for such employees serves the interests of the Employer
by enabling it to provide reasonable retirement security for its employees, by providing increased flexibility in its
personnel management system, and by assisting in the attraction and retention of competent personnel; and
WHEREAS, the Employer has determined that the establishment of a deferred compensation plan to be administered
by the ICMA Retirement Corporation serves the above objectives; and
WHEREAS, the Employer desires that the investment of funds held under its deferred compensation plan be
administered by the ICMA Retirement Corporation, and that such funds be held by the ICMA Retirement Trust,
a trust established by public employers for the collective investment of funds held under their deferred compensa-
tion plans and money purchase retirement plans;
NOW THEREFORE BE IT RESOLVED that the Employer, unless it has already done so, hereby adopts the deferred
compensation plan attached hereto as: (check one only if Employer is hereby adopting a plan)
(1) Appendix A I I or
(2) The plan provided by the [ j
Employer which is attached hereto
and the Trust Agreement with the
ICMA Retirement Corporation
(Appendix C)
and appoints the ICMA Retirement Corporation to serve as Administrator thereunder; and
BE IT FURTHER RESOLVED that the Employer hereby executes the Declaration of Trust of the ICMA Retirement
Trust, attached hereto as Appendix B.
BE IT FURTHER RESOLVED that the City Manager (use title of official, not name)
shall be the coordinator for this program and shall receive necessary reports, notices, etc. from the ICMA Retire-
ment Corporation or the ICMA Retirement Trust, and shall cast, on behalf of the Employer, any required votes under
the program. Administrative duties to carry out the plan may be assigned to the appropriate departments.
Pat Dodge, City Manager
I, Margaret R. Davis Clerk of the Cit , County, etc.)
of Medina do hereby certify that the foregoing resolution, proposed by
(Council Member, Trustee, etc.) of rity of Martina was duly passed and adopted
in the (Council, Board, etc.) of the_(21y, County, etc.) of Marlin,
at a regular meeting thereof assembled this gg_ th day of May 19-S8_, by the following vote:
AYES:
NAYS:
ABSENT:
(SEAL)
Mayor Pete Vall-Spinas
arga t R. Davis, City Clerk
DECLARATION OF TRUST
OF
ICMA RETIREMENT TRUST
^RrICLE 1. NAME AND DEFINMONS
3eotlon 1.1 Mama: The Name d to Trust as amended and restated hereby,
is the ICMA Retirement lust.
Section 1.2 Denri tlons: Yyhene er they are used herein, the Ipllollirg temp
dell nave the tdww+no respective meamrgs:
(a) BpLaws The By -(errs miser, to in Section 4.1 hailed, as amended trcm
lime to tma
(b) Damned compensation Plan. A Maned comperseaon plan eslabesthed
and rr ,mained by a Pudic Employer for the Purpose Or proviOng rstire-
mera income and other deleted benefits to its emp10!0`9e5 in accordance
wish the prwisiora d section 457 of to Internal Revenue Code of 1954.
as amended.
(c) Employees. Those employees who participate in Ouatrfied Plans.
(d) Employer Trust A trust created Pursuant to an agreement between RC
and a Pudic Employer for the Purpose d ir^astin0 and administenng the
funds eel aside by such Employer in connection with is Debmed Compen-
soon agmarmem, wdh as employees or in connection with as Qualified Plan.
(a) Guaranteed Investment Contract. A contract enlerod into by the Retim-
ment lust with insurance companies that Pwdm for a 9u mntmd rate
d jum on irwasimerts made pursuant to such contract.
M ICMA. The Intermatioel City Management Aseocieoon.
(g) hCMAIRC Trustees Thee Trustees by the Public Employers VA a
in accordance writ, the provisions of Section 3.1(a) hared, are also rrherr*
ben d to Board of Deectos of 1CMA or RC.
(h) IrrestmeM Adviser The Investment Adviser that enters into a contract
with to Retiremert lust to provide advna with respect to investment Of
the Trust Property
n Pomoklis. The Portldios of in,"trents established by the trwestrnent
Advwfer to the Retirement Trust, under the supervision Of to Truseei for
the purpose of providing irhveetrnerts for the Tent Property.
0 Puck Employee T unless Those lulees elected by the Public Employers
who. in accordance with the provisions at Section 31(a) hared, are hXtr s!
amployeres of Pudic Employers
(k) Pudic Employer lustees. Pudic Employers who acne Be trustees d
1111111 Qualified PWha
M Public Employer A unit d stele of bW government. or any agercy ot
whin ownlalty Nano( that has adoged a Deferred Compensation Plan or
a Ouataed Plan and has eaaeed Nis Declaration of tuft.
(m) Ouslresd Pan. A pan sponsored by a Public Employer to the Purpose
d providing retirement income to As amP"" which sstisfies the ouer&
Cation replprerrnera6 of Section 401 d to IrMmal Reverie Coda as
(n) RC. The Ireemalionst City Manapemant Assoaauon Ratimme" Copp
tation.
(o) Retirement lust. The Trust created by this Dedaration or lust.
(p) Trust Property. The amotmis held in the Retirement Trust on b" of the Pudic
Employers in connection with Deferred Compensation Plans and on behatl of the
Pudic Employer Trustees for to exclusive benefn of Employees Pursuant to Ouali
tied plans The Tmrsl Property fish include any income resuenng troth the irwest.
ment of to amounts so held.
(q) Trustees The Pudic Employee Trustees and ICMAJRC Trustees elected by the
Pudic Employers to save as members 0i the Boob of Trustees of the Retirement
lust.
ARTICLE II. CREATION AND PURPOSE OF THE TRUST; OWNERSHIP
OF TRUST PROPERTY
Section 2.1 Creation: The Retirernera Trust is created end established by
the execution of this Declaration of Trust by the Trustees and the Pudic
Employers
Section 2.2 Put pose: The purpose of the Retirement Trust is to provide for
the commingled irnesonert d funds held by the Pubic Employers in conned
lion with their Deterred Compensation and Oualified Plans. The Trust Prop.
arty "I be irwested in the Potdios, in Guaranteed Ir es meet Contracts.
and in other imestmerts recommended by the Investment Adv,er under the
axperrraion of to Board of lusees No plan or the ivst Property wit be irwestad
in sedni ens issued by Pudic EmpWyem
Suction 2.3 Ownership of Trust Property: The Trustees shall have legal
true to the, Tusl Property The Public Employers shall be the beneficial owners
of the portion d the Trust Property silorable to the Deferred Compensation
plans The portion d the Trust Property allocable to the Oualified Plans shall
be held for the Pudic Employer Trustees for the melusiw benefit d to
Employees
ARTICLE Ill. TRUSTEES
Seetlon 3.1 Number and Quallf(utlon of Trustees.
(a) The Board of Trustees shall consist of nine Trustees . Frye of the Trustees;
shall be fug me employees of a Public Employer (tie Pudic Employee
Trustees) who are suthori2ed by such Pudic Employer to serve as Trustee.
The remaining lour Trustees shot consist of two Persons whoat the time of
election to the Board of Trustees. we members of the Board of Directors d
Ill and two persons Who. at the time Of election, are members of the Beard
d Directors CO RC (tie ICMAIRC Trusi One of the Trustees who is a dream
of hCMA, and one of the Trustees who s a director Of RC. shill. at the mne
d election, be full-time employees of a Pudic Employer.
(b) No person may sere as a Twelve for more than one term in any ten-year
period
Section 3.2 Election and Term.
(a) Except for the Truaees eppoinad to M MICS"Cx5 Pursuant to Section 3.5
hereon. rue Trustees shall be elected by a vote of A mapny d the Public
Employer; in accordance with the Poceduns sat "h in the By Laws
fb) At file ad Weeba of Ivan& tree huatees shell be elected br a term
d tree liem tree hdees Mull be alocted for a term of no years end tree
creates ehai be *Mood ter a term of one lase At asch subsequent olertion.
three Trustees stet be elected for a tens or tree years and t/'d has or her
successor a o'Kwd and quashed.
Section 3.3 Nonhsatlons: The Tnletees who we tit-tarne employees of Pubic
Employers shd serw es the Nominating Committee for the Public Employee
lures The ►awnifatrg Cmmmnlee shall close candidates br Public Employee
husisss in accordance with the procedures w brtt in the SrLatva
Swdw 3.4 MSViartlon and Removal.
W Any hsea my ma gn as luase (wMhwl need for prier or sutaequwt
accounting) by an instrument in writing signed M to Trustee and delivered
ID to dear hsaes and such resignation else be anective upon such disk Miry.
or a a later dab according b the terms of the instrument. Any of to human
maybe roww.eO for cause by a vote of a mejoray, of the Pubic Enhployera
(b) Each Public Employee iuste r shell resign he or her posaion a Trustee
wshln soity, days of the date on vA oc+ he or she ceases to be a full-time wrplole t
of a Public Enptoyer.
Section &S Vecaneles: The ern of office of a ludee seen temnirer and
vacancy sell occur in the went of the deatm. ma gnafion. rwrwAl. adFdi'
ated a cpmpolene or other incapacity to perform the duties of the of e of
a Vustea In the case of a vacancy, the remaining luwees stall appoint such
person as they in their dwretion Ghat we M (subpc to the limitation set brth
in t is section). to serve for to unexpired portion of the term of the Trustee
who has resigned or atharvriae ceased to be a Trustee The awortrrert slat
be made by a written instrument signed by a majority of the Trustees. The per.
son appdrsed must be the same type of Trustee 6-a. Pudic Employee True
We or ICMAJRC Trustee) as the person who has ceased to be a Trustee An
appointment of a Tnntee may be made in antope w of a vocancy to occur
of a or date by rayon of relirer eit w resignation, provided that such oppon
rent sus not become ~live prior to such retirement or resignation. When
over a vacancy in the number of Inman that occur, urV such vsrancy is
ffad as provided in this Section 35, the Tnntees in once, regardless of their
number. "I have all the powers granted to the Trustees and shall discharge
sit the duhn imposed upon the Trustees M this Decoration. A wrihen esrur
rem cortiying to evdence of such vacancy signed by a maici of the
hdoes 0*1 be co, uwve evidence of the existence of such vacancy
Section 3.9 Trustees Serve In Represents lve Capacity: By executing
this Declaration, each Pubic Employer agrees tee the Pubic Employee Trustees
eleOted by to Pudic Employers are authorized to as, as agents and represent
awes d the Puck Employers cdlectvely.
ARTICLE IV. POWERS OF TRUSTEES
Section 4.1 General Pow Is: The Tnsaes shall have the power to conduct
tee blsnees d to Trot and b Cary m as openttiora Such power shat ickda
but "I not be limited Ia the power ID:
W receive the Trust Property from to Pudic Employers Puck Employer
lsees or other Trustee of arty Employe Trust;
(b) enter into a contract with an Invosrient Adviser prooding. among other
things. for the establishment and operation of to PorttdioL selection of the
Guaranteed Investrron Contrac6 n which the Trust Property may be invested.
selemon d oshe ieestrrher6 ter the Trot Piopsny "the pay 10 d eesorha-
ble fees to the In armem Advise and to any Mubinvtdrnem advise retained
by the hweatrrort Adviser;
(c) revishr annually the performance or the Investment Adviser and approve
annually the contract with such investment Adviser:
Id1 irvest and Mimes the Tns property in the Ponlosos to Guarat I. aeesl
Coeim and in any other ineedhxrt acorn girded by to In *Wren Adviw.
but rid mdu6np aeur l as i oued by Pubic Employers pro died that a a Relic
Employe has directed tat as monies be invewed in specified Portldios w
in a Guaranteed Irvasfnom Contract. to Trustees of the Robrwnent Tns atheA
invest such monies in accwdence with such directions;
(0) keep such portion of the lug Property in cash Or cash balercas es the
fiches, from time to time, may deem to be in t e beat -Nei of the Ratirs
caws True craved hereby, without iabitay for reerew tumors:
m aoCap1 and retain bat such time as shy may deem adv+sable any seat.
We Or otw property received a acquired by them ss 4ustees hereunder,
whether or not such ew:ursies of other property world normally be purchased
as u*aslmeft hereunder:
(g) Cause any seanites a Wei property held as pan of the Trost Property
to be registered in to name of the Reuremert hit or in the none of a nwhi
not and b hold any imastmarts in bearer form, but the books and records
of the :uMsn Shan at Mill ernes their that all such it AMYM ss are a pan of
ow hs Property'
(h) mass, sxacute wknowledge, and defive, any, ad all documeres of trans.
sou and covyonca and any and all other intrumeres that may be necessary
or appropriate to carry ern to ponars heron Wanted;
m vote upon any sods, bo, or *ter aeaxlses. give general or spe(ial orwuas
or power of addrey, with or withal power of subvir ion. seerpse any con
vrrwon privileges, subscription rights, or otter options. and make any pay
r 01 inhoidetal therelp: oppose. Car wear b, or otherwise PDnK=S a in,
corporate rewganntiors or other changes ~.ng corporate sacwlees, end
delegate decrelionary ppwens, and pay any assessments or charges in con
nection terrwith, and generally wa niw any d the powers of w an owner with
.saw to aioCle, bads, securNies or other property held es part of the Trust
Q finer cab contracts or errangements for goods or services required in con.
necion with the operation of the Retirement Tnd, including, bul net limited
tix contracts with buslodians and comlraClS ter the proviwon d administrative
(k) borrow or raise money for the purposes of the Retirement lug in such
smount, and upon such lams and conditions, as the Tnmees sled dean sdn
able provided Mal the eggregate amount of such borrowings shah nit Boxed
30% of the value of the let Property No person lending money to the lustaes
Wall be bound b an the application of the money Mrs or to inquire Into as
validity, sspe deny or propriety of any Such borrowing:
m incur reasonable expenses as required ter the operation d the Retinmem
Trust and deduce such expenses torn the Truer Property:
(m) pay expanses property anocable to the Ted Property incurred In connec.
ton with the Deterred Compeneauon Plana. Ouaified Plans or ii Employer
Trusts and deduct Mich axpenes horn sac potion of the Ted Property to
whom such sapenses are property allocable,
(n) pay out of the hit Property an real and personal property taxes. intone
texas and Other hums of any and an kinds which. in the opinion at the Tnntaes
ore closely MvMd, a assessed under wostng or flue laws upon, or in nsysq
of, the Trust Property and allocate any such Wes to the appropriate wsourts,
(o) adopt, amend and repeal the ByLaws, prMded thou such ByLaws are
at an limes wester with the teens of tts Declension of Trust:
(0) employ person to mole available rWeM in to Reimmene Tent to
employers eligible to maimain a Deterred Cwnpenation Plan under Section
457 of a Ouslined Plan under Section 401 d the Interred Revenue Code, as
(q) issue two Annual Report of the Plal repent Trust. and the disclosure door
merits and other literature used by the Reeremem Trust.
(I nuke loan& includ ng the purchase of debt obligations, prov oleo tat an
such loon shall bear interew at the current m rW rate'.
(s) contras, for. and delegate arty powers gnrted hereunder to such otncers.
agi employees. audilors and anwneys as the Trustees may select. pro ded
that the Trustees may not delegate the powers eel forth in paragraphs (b). (C)
and (0) of this Section It and may not delegate any powers if Much Otsego
eon woAd vldee their fiduciary, dupes.
M VDAda for the indemnification of the dfcars and Tndses Of the Retirement
Ted and purchase fiducary Mourarce:
(u) maintain boor¢ and records, including separate accounts for asap Pubic
Employer, Pubic Employe, Trustee or Employer:ust and such eddpwW sep
Mime accounts as arc reowscl under. and consist" with. the Deterred Con
perwatron or Ousirhed Plan of each Public Employer, and
(v) do all such wits. take all such proceedings, and wteCJw an such rghts
and pnvisgesalthough nol spetiacMy marooned herein, a the Trustees may
deem ncessoryorappropnole to adm msW the Tnd Properly and to arty
al the purposes of the Retirement Trust.
u ins rual rypp.
arty"be made 4 or on tyehat of, the Public Employer a Pudic Employer
iuNK in accordance with oe firms of the Deferred Compensation Pons.
OualiAed Plains or Employer Truth The luisees of the Retirement fur shed
be fly P" W sod in making Payments in accordance with the directions d
the Public Employes. Public Brhplom purees a corer huge on the EmPoper
lush wiho t ace - ning whiter such psymenit are in eormpkarce with the
pmvmcm d the Delernd Comperation or OtaFfred Pam or the apreererrs
creating to Employer Trutt
Section 4J Execution Of Instruments: The Trustees may un anirnousty
dseipnals any one or more of this Trimses toe OM" any instrument or docur
mars on bohalf of all, including but not li ited to the signing or endonwnen
of any dock and the signing of any applications, insurance and other con
frec. and the action of such designated Trustee a ILWa tidal have the
sans kaos and meet as t taken A' allto lueeet
ARTICLE V. DUTY OF CARE AND LIABILITY OF TRUSTEES
Section 5.1 Duty of are: In exercising the powers hersinbelae granted to
the hreees the Trustees shall perform all acts within their authority for the
arrduive purpose of Providing beralits for the Pudic Employers in bones
eon wax Deferred Canpesetian Res and Pubic Employer Trustees pursuant
ID Ouaiifed Plans, and shall perform such ads wilt, the bare, skill. prudence
and diligence in the circumstances Ilan proveiling that a Prudent person W.
irg in a like Capacity and familiar with such matters would use in the conduct
of an enterprise of a like caradar and with like aims
Section 5.2 Liability: The Trustees shall no be liable for any rnishke of lud7
inert or other action taken in good lath, and for any scion taken or ached
in reliance in good him upon the 600¢ Of accourt or Other records of the
Retirement Trust. upon the oprkon of courne, or upon reports made to the
Rob - imt True by any Of is dficem employees or agents or by the Irwae.
men Adviser or any sub-im"Mern adviser, arxuuntants, appraisers or other
experts Or consultants selected with reasonable care by the Trustees, officers
Or employees of the Retirement Trust. The Trustees Mall also not be liable for
any loss sustained by the Trust Property by reason or any investment mode
0 good faith and in accordance with the standard of care am foM in Section 51.
Section 5.3 Bond: No True" shall be obligated to give any bond or other
security for the Performance of any of his or her duties hereunder
SHAREHOLDERS
The ludm shell annually submit to the Public Employers and Pubic Employer
Tussles a written Moon of the transactions of The RetirementBust, kcluding fnan
cid lltlenanh whch shell be ceNfNd by independent Public accourtants cho
eon by to lussi
ARTICLE VII. DURATION OR AMENDMENT OF RETIREMENT TRUST
Section 7.1 Withdrawal: A P Employer a Pubic Em*M Buret may
e any tins, wthdraw Irom On Retirement True by delivering to the Board of
hostess a written stNernet of wthdrowel. In such Cage 't the Public
Employe or Pudic Employer Trustee Mel acknowledge nut the True prop
sty adorable to os Public Employer is derived from compensation deferred
by employees of such Public Employer pursuant to b Deterred Canpsna ,
lion Plan or from contributions xd this accounts of Employees Pursuant to ■
OuWftd Ran, and tell dasignale the finercW ire ilution to which such property
Man be transferred by the Trustees of the Retrameni lust or by the Trustee
of the Employer True.
Section 7.2 Dutation: The Retirement True shall corrtnue until terminated
by the vote Of a majority of the Pudic Employers, each casting one vas Upon
lorminatlon, all d the Trust Property sf Wt be paid out to the Pubic Employers,
Pubic Employer Trustees a the tutees of the Employe Trusts, as appropriate
Section 7.2 M on tilment: The Retimmert lust may be amended by nhe wale
of a mybrity of the Pudic Employers, each casting one vote
Section 7.4 Proeedune: A resolution to termnrate or amend the Reirement
Sur Or b remove a Trustee Mall be submitted to a pule of the Public Employers
It 01 a MR?" Of the Trustees so direct, a: (1q a Pellucin requesting a vole,
signed by not less than 25% of the Pudic Employers, is submitted to to
Trustees
ARTICLE Vill. MISCELLANEOUS
Section 5.1 Oo"Ming Law: Except as otherwise required by state a "i
law. this Declaration of Bust and the Reiremem Trust hereby created shah be
oonerued and regulated by the laws of the District of Columbia.
Saetlon 5.2 CourtterPli This Dedaratiah maybe executed by ne Pubic
Employers and Trustees in two Or more counterParts, each of which than be
deemed an original but N of which topehe shall consomme one and Uv same
instrument.