Res 17-97 RESOLUTION NO. 17-97
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
DELP~AY BEACH, FLORIDA, APPROVING THE ESTABLISHMENT
OF A MONEY PURCHASE PLAN AND TRUST THROUGH THE
INTERNATIONAL CITY MANAGEMENT ASSOCIATION
RETIREMENT CORPORATION FOR CERTAIN ELIGIBLE
EMPLOYEES; PROVIDING A MATCHING PROGRAM; PROVIDING
FOR THE CITY TO ACT AS TRUSTEE; PROVIDING FOR
ADMINISTRATION OF THE PLAN; PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, the City of Delray Beach (the "City"), in addition
to already established plans, desires to establish a Money Purchase
Plan and Trust (the "Plan") for certain eligible management match
employees, as designated in Exhibit A; and
WHEREAS, the City desires that the money purchase
retirement plan be administered by the ICMA Retirement Corporation
and that the funds held under such Plan be invested in the ICMA
Trust, a Trust established by public employers for the investment of
funds; and
WHEREAS, the City desires to provide a matching
contribution for eligible employees as shown in the adoption
agreement, subject to state and federal laws.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS:
Section 1. That the City hereby establishes a money
purchase retirement plan (the "Plan") in the form of:
The ICMA Retirement Corporation Prototype Money
Purchase Plan and Trust, pursuant to the provisions
of the adoption agreement as set forth in Exhibit B
attached hereto.
Section 2. That the City shall contribute a three percent
(3%) match to the Plan for participating eligible match employees.
Section 3. That the City hereby agrees to serve as trustee
under the Plan and to invest funds held under the Plan in the ICMA
Retirement Trust.
Section 4. That the City Manager shall cast, on behalf of
the Employer, any required votes under the ICMA Retirement Trust,
execute all necessary agreements with the ICMA Retirement Corporation
incidental to the administration of the Plan, may receive all reports
and notices from the ICMA Retirement Corporation and may delegate any
administrative duties.
PASSED AND ADOPTED in regular session on this the 4th day
of March, 1997.
~City C~rk
- 2 - Res. No. 17-97
Exhibit A
Eligible Management Match Employees Who Have Opted Out of City Pension Plans
Barcinski, Robert A.
Butler, Lula C.
Dominguez, Diane C.
Greenwood, William H.
Gusty, Edward J.
Harden, David T.
Overman, Richard G.
Rehr, Robert B.
Ruby, Susan
Tolces, David N.
Weldon, Joseph H.
Exhibit "B" to Resolution No. 17-97
ICMA RETIREMENT CORPORATION
PROTOTYPE MONEY PURCHASE PLAN & TRUST
ADOPTION AGREEMENT
#001
Account Number 9648
The Employer hereby establishes a Money Purchase Plan and Trust to be known as
City of Delray Beach 40lA 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.
~ Yes MI No
If yes, please specify the name of the defined contribution money purchase plan which this Plan
hereby amends and restates:
I. Employer: City of Delray 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:
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 10/1/96 and
each anniversary thereof.
MPP Adoption Agreement 12/23/94 ~1~
001-94
V. Normal Retirement Age shall be age 55 (not to exceed age 65).
VI. ELIGIBILITY REQUIREMENTS:
1. 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
Management Employees
Public Safety Employees
General Employees
X Other (specify below)
Eligible management match employees who have opted out of City ,
pension plans
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 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 if no
minimum age is declared.)
VII. CONTRIBUTION PROVISIONS
1. The Employer shall contribute as follows (choose one, if applicable):
Fixed Employer Contributions With Or Without Mandatory Participant
Contributions.
The Employer shall contribute on behalf of each Participant 3 % of
Earnings or $~ for the Plan Year (subject to the limitations of Article VI
of the Plan). Each Participant is required to contribute 3 % 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 contributions after becoming a Plan Participant.
MPP Adoption Agreement 12/23/94
Exhibit "B" to Res. No, 17-97 (Page 2 of 7) 001-94
The Employ'er hereby elects to "pick up" the Mandatory/Required Participant
Contribution.
Yes l~l 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. Rul. 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 % 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 % of
Earnings or $ 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):
~% of the 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 includ-
ing 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 l~l more or
IZi less.
MPP Adoption Agreement 12/23/94
001-94
Exhibit "B" to Res. No. 17-97 (Page 3 df 7)
2. 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.
~l Yes CI No
3. Employer contributions and Participant contributions shall be contributed to the
Trust in accordance with the following payment schedule:
Bi-weekly
VIII. EARNINGS
Earnings, as defined under Section 2.09 of the Plan, shall include:
(a) Overtime
UI Yes ~ No
(b) Bonuses
~ Yes t~ No
IX. LIMITATION ON ALLOCATIONS
If the Employer (i) maintains or ever maintained another qualified plan in which an,,, 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).
1. 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.)
MPP Adoption Agreement 12/23/94
Exhibit "B" to Res. No. 17-97 (Page 4 of 7) 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.
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 reqmrements as noted and (2) the concurrence of the Plan Administrator.
Years of Specified Minimum
Service Percent Vesting
Completed Vesting Requirements**
Zero % No minimum
One 100 % No minimum
Two % No minimum
Three % Not less than 20%
Four % Not less than 40%
Five % Not less than 60%
Six % 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 ] 2/23/94 ~
001-94 Exhibit "B" to Res. No. 17-97 (Page 5 of 7)
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.
XIII. 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.
XV1. 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 this Agreement to be executed on
this day of , 19
EMPLOYER Accepted: ICMA RETIREMENT CORPORATION
By: By:
Title: Title: Corporate Secretary
Attest: Attest:
MPP Adoption Agreement 12/23/94
Exhibit "B" to Res. No. 17-97 (Page 6 of 7) 001-94
401 QUALIFIED PLAN EMPLOYER DATA FORM
· Instructions to £mployer: Provide necessary infc)rmanon to establish your plan properly. Please contact Client
Services at 1-800-326-7272, if you have any questions.
RC Use Only ~c~.~, ~
RETIREMENT
CORPORATION
1. Employer Number
General 2. Employer's Full Name (City of, County of, etc.) City o£ Delray Beach
Plan
Information 3. Employer's Mailing Address 100 N.W. 1st Avenue
4. City Delray Beach 5. State FL 6. Zip Code 33444
7. Employer's Federal Tax Identification Number 59-6000308
8. Number of Employees 744
9. Number of Employees Eligible for Plan 11
10. Last Month of Plan Year (write in month 01-12) 09
Contact 11. Title (not name) of Plan's Primary Contact Person Finance Director
Information Primary Contact Person will automatically receive all RC correspondence, reports, and bulletins
Telephone( 561 ) 243-7116
12. Title (not name) of Contact Person for Benefit Payments Assistant: Finance Director
Telephone( 561 ) 243-7134
[] Check here if Contact Person for Benefit Payments should receive RC correspondence,
reports and bulletins
13. Title (not name) of Contact Person for Contributions Assistant Finance Director
Telephone( 561 ) 243-7134
[] Check here if Contact Person for Contributions should receive RC correspondence, reports,
and bulletins
Note: If neither of the boxes in 12 or 13 is checked, default correspondent will be Plan Coordinator named in the resolution.
Implementation1 14. Contribution Frequency (check one): ~ (W) Weekly ~ (M) Monthly [~ Other (specify)
of Plan : ~II (B) Biweekly [~ (S) Semi-monthly
~ 5, Contribution Data Format (check one): ~ (T) Tape ~ (QD) QUICK DISK ~ (E) EDT
[] (C) Contribution Statement [~ (D) Diskette
16. First pay date following plan implementation 3/21/97
17. Are employees covered by the plan also covered by another qualified plan? [~ Yes ~ No
ICMA Retirement Corporation · P.O. Box 96220. Washington, EJC 20090~6220: 1-~d0~3~2~-~'272
Exhibit "B" to Res. No. 17-97 (Page 7 of 7)
Agenda Item No.:
AGENDA REQUEST
Date: 02-18-97
Request to be placed on:
X Regular Agenda Special Agenda Workshop Agenda
When: 03-04-97
Description of agenda item (who, what, where, how much):
1) Approval of ICMA Prototype Money Purchase Plan and Trust Adoption A~reement #001 for
a 40lA Plan for certain eligible management match employees (as outlined on Exhibit A
attached).
2) Adoption of Resolution 17-97 for the 40lA Plan outlined above.
ORDINA~CE/ RESOLUTION REQUIRED: yES/NO Draft Attached: YES/NO
Recommendation: Approval is recommended by the City Manager and Finance Director.
Determination of Consistency wit~mprehensive Plan:
n/a
City Attorney Review/ Recommendation (if applicable):
City Attorney has reviewed and approved Adoption AKreement and drafted ResolutioB
Number 17-97 for City Commission approval.
Budget Director Review (required on all items involving expenditure
of funds):
Funding available: YES/ NO
Funding alternatives: (if applicable)
Account No. & Description:
Account Balance:
City Manager Review:
Approved for agenda: NO
Agenda Coordinator Review:
Received:
Action: Approved/Disapproved
MEMORANDUM
TO: David T. Harden
City Manager
FROM: Joseph M~
Director of Finan~;,z~
SUBJECT: 401A Plan for Certain Eligible Management Match Employees
DATE: February 19, 1997
During the Fiscal Year 1996-97 Budget process, the City Commission approved the concept of
additional benefits for management employees. The 3% Match Program was funded for Fiscal
Year 1996-97 for certain management employees. This Program allowed for certain management
employees to make contributions to their ICMA 457 Deferred Compensation Plan Account which
would be matched by the City up to a 3% maximum. However, as some of these management
employees had opted out of the City's Pension Plans and were already having the City contribute
9.5% of their salary to their ICMA account, in many cases they could not take advantage of the
3% Match Program as this additional contribution (plus their match) would cause them to exceed
the annual maximum limit allowed for a 457 Deferred Compensation Plan Account of $7,500.
Consequently, we began looking at an alternative plan for those certain eligible management
employees who had opted out of the City's Pension Plans. The ICMA offered a 401A Plan which
met the City's needs.
Therefore, attached is the ICMA Prototype Money Purchase Plan and Trust Adoption Agreement
for approval by the City Commission. Upon their approval, the Agreement must be signed and
returned to the Finance Department for further processing. Also attached for City Commission
approval is Resolution Number 17-97 which establishes this Money Purchase Plan and Trust.
This Resolution was drafted by the City Attorney's Office and has been reviewed by our office. A
copy of this signed Resolution will also need to be returned to the Finance Department as it must
accompany the Prototype Money Purchase Plan and Trust Adoption Agreement.
/sam
cc: Milena L. Walinski, CGFO, Assistant Finance Director
Glenda Rivera, Payroll Administrator