HomeMy WebLinkAboutRES NO 21-74 RESOLUTION N0. '~21174
A RESOLUTION OF THE COUNCIL OF THE CITY OF
BAKERSFIELD APPROVINGAN EMPLOYEES' DEFERRED
COMPENSATION PLAN AND AUTHORIZING ITS
IMPLEMENTATION.
WHEREAS, the City of Bakersfield, as an incentive to
retain existing personnel and attract qualified personnel
employment with the City, is desirous of adopting and implementing
a Deferred Compensation Plan enabling employees to defer a portion
of their income pursuant to such plan.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Bakersfield that the City of Bakersfield Deferred
Compensation Plan attached to this resolution, marked "Exhibit A,"
and by reference incorporated herein, is hereby adopted.
BE IT FURTHER RESOLVED that the City Manager is authorized
to implement said plan; and the City of Bakersfield consents to
the plan and assumes the obligations to be performed on its part
as set forth in said plan.
BE IT FURTHER RESOLVED that the plan shall be operative
immediately, but shall apply only to compensation earned by a
participating employee, subsequent to the date of filing a written
declaration to participate, and the City consents to the partici-
pation of any employee in the Executive Group, the Executive Support
Group and the Supervisory Personnel Group as set forth in Section
3.18.060 of the Municipal Code of the City of Bakersfield, such
participation to be in accordance with the "Employee's Participation
Agreement."
BE IT FURTHER RESOLVED that at the end of each calendar
year the City shall prepare a financial statement of the amount of
employee compensation deferred pursuant to said'plan and the types
of investments held under such plan.
o0o
I HEREBY CERTIFY that the foregoing Resolution was passed
and adopted by the Council ofthe City of Bakersfield at a regular
meeting thereof held on the 18th
day of March , 1974,
by the following vote:
AYES: COUNCILMEN BLEECKER, EISEY, MEDDE~S, ROGERS, ~ ~
ABSTAINING COUNCILMEN, ~"7,Dl, f._.~ _
CTING CI i an O/~ficlo Clerk of
A~e Council f t of B~k~rsf~eld
t ' ' '
Ba eld
1974
APPROVED as to form:
I ORN ~ City of Bakersfield
SECTION 1.
SECTION 2.
SECTION 3.
CITY"OF BAKERSFiELD
DEFERRED COMPENSATION PLAN
NAME: The name of this Plan is the City of Bakers field Deferred
Compensation Plan (hereinafter referred to as th_e Plan).
PURPOSE: The primary purpose of the: Plan is to attract and hold
management personnel by permitting them to enter into agreements with
the City of Bakersfield which will"provide future payments in lieu of
deferred current i n come upon death, dis abi 1 i ty, retirement, or other
termination of employment with the City of Bakersfield.
DEFINITIONS: For the purposes of this Plan certain works or phrases
used herein will have the following meanings.:
3.1 "'Employer" shall mean the City of Bakersfield.
3.2
3.3
3.4
3.5
3.6
3.7
3.8
"Employee" shall mean such management employees designated as
Executive Group, Executive Support Group and Supervisory
Personnel Group in Section 3.18.060 of the City of Bakers field
Muni ci pal Code.
"Participant" shall mean an employee who has elected to partici-
pate in the Plan.
"Participation Agreement" shall mean the agreement executed
and filed by an employee with the employer pursuant to Section
4, in which the employee elects to become a participant 'in the
P1 an.
"Compensation" shall mean the full, regular, basic salary which
would be paid by the employer to or for the benefit. of an employee
(if he were not a participant in the Plan) for actual services
for the period that he is a participant.
"Deferred Compensation" shall mean the amount of compensation
not yet earned, which the Participant and the City mutually
agree shall be deferred in accordance with the provisions of
this Plan.
"Employment Year" means the calendar year, except that the
first year of an employee hired in mid-year shall be a short
year beginning with the date of employment and.ending on the
date the employment year otherwise ends.
"Disability" means the inability of a participant to'engage in
his usual occupation by reason of a medically determinable
physical or. mental impairment as determined by the employer on
the basis of advice from a physician or physicians.
EXHIBIT A
Page 1 of 6 Pages
SECTION 4.
"Normal Reti rer~nt" shal I m~an a retirement from service with
the City which becomes effective on the first day of the
calendar month after the Parti Cipant meets the age and service
requirements for normal retirement specified in the Retire-
ment Plan for the employees of the City.
3.10
"Early Retirement" shal 1 mean a retirement" from service with
the City which becomes effective on the first day of the
calendar month after the Parti~cipant meets the age requirements
for early retirement specified in the Retirement Plan for the
employees of the City.
3.1.1
"Late Retirement" shall mean a retirement from service with
the City which becomes effective after the Participant has
exceeded the normal retirement age as specified in the Retire-
ment Plan for the employees of the City.
3.12 "Termination of Services" shall mean the severance of the
Participant's employment with the City prior to retirement.
PARTICIPATION IN THE PLAN:
4.1
Each employee may elect to become a participant of the Plan
and defer payment of part of his compensation by executing a
written Participation Agreement and (a) filing it with lthe
employer no later than the day before January 1 and July 1,
of any employment year of the employee; or (b) for the first year
in which the Plan is established, by filing it with the employer
no later than 60 days after the Plan is established..
4.2
A Parti ci pati on Agreement shal 1 be effective for the first
employment year following its execution and filing, except
when it is executed and filed pursuant to Section 4.1, in
which case it shall be effective for that part of the em-
ployment year following its execution and filing. In either
situation, the Patti ci pati on Agreement shal 1 continue from
year to year and remain in full force and effect unless
terminated as provided in Section 4.3 below.
4.3
At the time of any agreement hereunder, a Participant must
agree to defer a minimum amount of $300 per annum on a
bi-weekly basis.
.4.4
.Additional agreements with respect to compensation not yet
earned may be executed at any subsequent time. However,
such subsequent agreement shall not be effective until the
earlier of January 1 or July 1 of the employment year. Prior
agreements may not be revoked or modified except as elsewhere
provided herein.
Page 2 of 6 Pages
SECTION 5.
SECTION 6.
SECTION 7:
SECTION 8.
A participant may terminate.his participation in the Plan
and thereby terminate further deferral of his compensation
by filing with the employer an executed written notice of
termination at least 30 days prior to effective date of
termination. Once terminated, a former participant can not
rejoin the Plan during the employment year.-in which termina-
tion occurred; however,I he may elect to become a participant
in subsequent employment years. No amounts shall be payable
to an employee upon terminating his participation in the Plan
unless otherwise due pursuant to Section 10.
DEFERRAL OF COMPENSATION: During each employment year in which the
employee is a participani~ in the Plan, the employer shall not pay
the employee his full compensation but shall defer payment of such
part of his compensation as is specified by the employee in the
Participation Agreement which he has executed and filed with the
employer.
ADMINISTRATION OF THE PLAN:
6.1
This Plan shall be administered by an administrative' committee
of three appointed by the City Manager.. The Committee shall
have full power and authority to adopt the rules and regula-
tions for the administration of the Plan, and to interpret,
alter, amend and revoke any rules and regulations so adopted.
6.2
The employer shall establish a deferred compensation fund
to which all deferred compensation will be credited at such
times as the compensation would have been payable to in-
dividual employees if not a participant of the Pl'an.
INVESTMENTS: The funds and assets of this Deferred Compensation
Plan shall be invested and reinvested in a manner in'tended to
increase said resources, and the net interest, accumulation and
increments theron shall be credited and held in the plan for the
benefit of Participants. The City shall not be responsible for
any loss due to the investment or failure of investment of funds
and assets of the Plan nor shall the City be required to replace
any loss whatsoever which may result from said investments.
ASSETS OF CITY: All funds and assets together with interest,
accumulations and increments theron of the Deferred Compensation
Plan shall remain an asset to the City and shall be subject to
City's ownership until such time as the funds or assets of said
Plan are distributed to the Participant. The obligation of the
City to the Participant for payment of the Deferred Compensation
and increments theron referred to in this Plan is a contractural
obligation only and Participants shall have no preferred or specific
interest by way of trust, escrow, annuity or otheY~viSe, in and to
the specific assets or funds of .the Plan.
Page 3.of 6 Pages
SECTION
SECTION lO.
PLaN BENEFITS: The Pl'~n provide's' for alternative types of payments
as fol Iows:
Deferred Compensation Payments, payabl~ on the happening
of any of the following events:
Normal Retirement of'a Participant,
Late Retirement of a Participant, or
Early Retirement of a Participant, or
Termination of Service of a Participant.
Death of a Parti ci pant who dies before
Deferred Compensation payments commence.
DISTRIBUTION OF BENEFITS:
lO.1 Retirement and Termination -- In the event of early, late or
normal retirement or termination of employment, then the full
benefits credited to participant's book account shall be dis-
tributed to him in any one or more of the following ways:
lO.1 (a) In a lump sum.
10.2
lO.1 (b)
In monthly installments over a period not to exceed
ten (lO) years from date distribution began or over
a period established by the employer not greater
than the life expectancy of the participant. Life
expectancy shall be determined once by the employer,
on the date of the initial installment distribution.
Installment distr.ibutions will be made in sub-
stantially equal payments.
The administrative committee shall select the method of dis-
tribution and the employer shall make .distribution by any of
the foregoing methods or combinations thereof. Participant's
book account balances will continue to be invested until--in
the employer's sole judgment--cash is to be withdrawn for
payment of benefits. Payments of benefits will commence not
later than sixty (60) days following termination of employment.
Disability -- In event of termination of employment by reason
of disability, distribution of benefits will be as provided
in Section lO.1.
10.'3
Death -- In event of the death of any participant, either
before or after termination of employment, then the full
benefits credited to his book account shall be distributed
to his beneficiaries or estate in the manner designated in
the participant's Participation Agreement. The employer shall
make payment not later than 60 days after death of the
participant.
Page'4 of 6 Pages
lo 4
If a Participant has qualified to receive Deferred Compensation
Payments and such Participant dies before receipt of all pay-
ments, the City agrees to continue to pay the balance of such
monthly payments to the Participant's designated beneficiary
or the Participant's estate.
10.5
In the event that a Participant's beneficiaries die before
all monthly benefit payments become payable to such bene-
ficiaries, whether under (10.3) or (10.4) above, then the
commuted value (at a rate of interest decided upon by the
City) of such monthly benefits will be paid by the City to
the estate of the last surviving beneficiary.
SECTION l l: EMERGENCY WITHDRAWALS: Due to unforeseeable financial obligations
and after other sources of financial relief have been explored, a
Parti ci pant may apply to the City for withdrawal from the P1 an pri or
to retirement or other termination of the Participant's service with
the City. If such application for withdrawal is approved by the
Admi n i s trati ve Commi tree, the withdrawal wi 11 be effective at the
later of the date specified in the Participant's application or the
date of approval by the Administrative Committee. The. City may elect
to honor a request from the Participant to pay the amount of money
determined as if the Participant had terminated his service; if such
request by the Participant is made and honored by the Administrative
Committee, the City shall make payments in a lump sum or in five
substantially equal annual installments thereafter as requested by
the employee. Following withdrawal, the Participant's compensation
will be thereupon restored to its prior level. Unforeseeable
financial obligations shall include but not be limited to the
following: bankruptcy or impending bankruptcy, unexpected and
unreimbursed major expenses resulting from illness to person or
accident to person or pr. operty and other types of unexpected and
unreimbursed expenses of a major nature that.would not normally be
budgetable. Withdrawals for foreseeable expenditures normally
budgetable such as down payments on a home or purchase of an auto or
col lege expenses wi 11 not be permitted.
SECTION 12. LEAVE OF ABSENCE:
12.1
If a Participant is on an approved leave of absence from the
City with compensation, his participation in this Plan may
con t i nue.
12.2
If a Participant is on an approved leave' of absence without
compensation and such leave of absence continues for more than
six months, said Participant will be deemed to have withdrawn
from the Plan as of the end of such six month period. The
City may elect to pay such withdrawn Participant the amount
of money determined as if the Participant had terminated his
service, said payment to be made in five substantially equal
annual installments to commence on the effective date of such
withdrawal, or at the sole discretion of the City in a lump
sum.
Page 5 of 6 Pages
?SECTION l~. EMPLOYER PARTICIPATIO~'i Not withstanding any other provision of
this Plan, the employer may make additional deposits in the de-
ferred compensation fund as additional .compensation for the
services rendered by the employee to!the empl!oyer during an em-
ployment year.
SECTION 14. NON-ASSIGNABILITY CLAUSE: It'is agreed that neither the Participant
nor his beneficiary nor any other designee shall have any right to
commute, sell, assign, transfer or otherwise convey the right to
receive any payments hereunder which payments and right thereto are
expressly declared to be nonassignable and nontransferable and, in
the event of any attempted assignment or transfer, the City shall have
no ~=urther liability hereunder, nor shall any payments be subject to
attachment, garnishment or execution, or be transferable by operation
of law in event of bankruptcy, insolvency, except to. the extent
otherwise provided by law, notwithstanding the above clause.
SECTION 15. AMENDMENT OR TERMINATION OF PLAN: The City may at any time terminate'
this Plan. Upon such termination, the Participants in the Plan will
be deemed to have withdrawn from the Plan ·as of the date of such
termination, the Participant's full compensation on a non-deferred
basis will be thereupon restored, and the City agrees to pay such
Participant's the amount of money determined as if the Participant
had terminated his employment, said payment to be made in five
substantially equal annual installments, or in the sole discretion of
the City, in a lump sum, commencing on the effective date of such
terminati on.
The City may also amend the provisions of this Plan at any time,
provided, however, that no amendment shall affect the rights of
Participants or their beneficiaries to the receipt of payment of
benefits, to the extent of any compensation deferred at the time
of the amendment as adjusted for investment experience hereunder
prior to and subsequent to the amendment.
The employer hereby establishes the City of Bakersfield Deferred
Compensation Plan on the term6 and conditions set forth in the
Deferred Compensation Plan attached hereto.
Page 6 of 6 Pages