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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