HomeMy WebLinkAboutResolution 80-55RESOLUTION 8055
BEING A RESOLUTION ESTABLISHING A DEFERRED COMPENSATION PROGRAM
WHEREAS, the City of Columbia Heights has in its employ certain
personnel, and
WHEREAS, said employees are and will be rendering valuable services
to the City of Columbia Heights, and
WHEREAS, the City of Columbia Heights has considered the establishment of
a Deferred Compensation Plan for the said employees made available to the
City of Columbia Heights and to said employees by the International City
Management Association Retirement Corporation; and
WHEREAS, said employees often are unable to acquire retirement security
under other existing and available retirement plans due to the contingen-
cies of employment mobility; and
WHEREAS, the City of Columbia Heights receives benefits under said plans
by being able to assure reasonable retirement security to said employees,
by being more able to attract competent personnel to its service, and by
increasing its flexibility in personnel management through elimination of
the need for continued employment for the sole purpose of allowing an
employee to qualify for retirement benefits.
NOW, THEREFORE, BE IT RESOLVED that the City of Columbia Heights establish
said Deferred Compensation Plan for said employees and hereby authorizes
its Mayor and City Manager to execute the Deferred Compensation Plan with
the International City Management Association Retirement Corporation,
attached hereto as Appendix 1; and
IT IS FURTHER RESOLVED that the Mayor and City Manager may, on behalf of
the City of Columbia Heights, execute all Joinder Agreements with said
employees and other eligible officials and officers, which are necessary
for said persons participation in the Plan, an example of which appears
as Appendix 2.
Passed this 22nd day of September
, 1980.
Offered by: Logacz
Seconded by: Norberg
Roll Call: All Ayes
unc~l Secretary
INTERNATIONAL CITY MANAGEMENT ASSOCIATION
RETIREMENT CORPORATION
DEFERRED COMPENSATION PLAN
Amended as of June 28, 1974 and March 23, 1979
It is hereby agreed that this DEFERRED COMPENSATION PLAN shall be in effect on the date upon which the Employer has caused it to be
executed by an official affixing his signature on behalf of the Governing Body in the space provided below. However, the DEFERRED
COMPENSATION PLAN will not be legally binding upon the International City Management Association Retirement Corporation until a Notice of
Plan Acceptance has been supplied by it.
City of Columbia Heiqhts, Columbia Heights, Minnesota
Legal Name of the Employer
Attest for the Employer:
Signature of Authorized Official
For the Employer,;
9/24/80 9/24/80
Date of Signature
Bruce G. Nawrocki Robert S. Bocwinski
Hayor City Manager
Print Name and Title
SEE INSTRUCTIONS FOR IMPLEMENTATION PRIOR TO COMPLETING THIS SECTION
Complete the following prior to mailing this Agreement to the Retirement Corporation.
Full Name (City of, Countyof, etc.) City Of Columbia Heights, Columbia
Title of Official to whom correspondence and reports are to be mailed:
fno~name) City Manager of Columbia Heights
Address: (include zipcode) 590 40th Avenue N.E., Columbia
Heights, Hinnesota
Heights, Minnesota 55421
Employers' Federal Tax Identification Number:
How often will you make contributions?
What is the date of your first contribution?
Total Number of Employees:_ 1 5 3
802-138~
Every two weeks
On or about December 21, 1980
Number of employees eligible to pa~icipate:
~o - 5_5'
PRELIMINARY STATEMENT
ESTABLISHMENT OF THE PLAN
AMENDMENTS
The International City Management Association Retirement Corpora-
tion, hereinafter the Retirement Corporation or ICMA-RC, is a nonprofit
Delaware Corporation. It has been classified as a tax-exempt organization
under the provisions of Section 501 (c)(3) of the Internal Revenue Code. As
an aid in the improvement of state and municipal administration in general,
the Retirement Corporation is organized for the purpose of receiving and
investing deferred compensation funds of state and local governments
and their related and controlled public interest organizations which are
tax-exempt under Section 501 of the Internal Revenue Code, hereinafter
referred to as "Employers"; to act as trustee and/or agent for the collection
and reinvestment of the income therefrom; and to act as agent for such
Employers and at their explicit direction for the distribution of the funds and
assets of their accounts to their participating Employees (including
independent contractors) in accordance with options provided in this
International City Management Association Retirement Corporation
Deferred Compensation Plan, hereinafter referred to as the "Plan," or the
"ICMA-RC Plan."
The ICMA-RC Plan is set out below in two parts: I. The Deferred
Compensation Employment Agreement; and II. The Master Trust Agree-
ment. As set out below, the Employer adopts this Plan as its Agreement
with the participating Employees and ICMA-RC, and the Employees shall
participate in the Plan through the execution of a Joinder Agreement,
which by its terms incorporates all of the provisions of the Plan. A copy of
the Plan shall be supplied to each Employee for his study and under-
standing prior to his execution of the Joinder Agreement. The Employers,
through their participation in the Plan, express their desire to have the
benefit of the continued loyalty, service and counsel of their Employees
and to assist them in providing for the contingencies of old age
dependency, disability, and death.
This Plan may be amended from time to time for purposes of assuring its
conformance to the requirements of any applicable law or rule or regula-
tion pursuant thereto, and to preserve the tax-exempt status of the Plan
and the Retirement Corporation. No amendment may either directly or
indirectly operate to derive any participating Employer of its beneficial
interest in the Trust as it is then constituted. The Retirement Corporation
will notifl/the participating Employers of any amendment to this Plan no
later than sixty days prior to its effective date. Any such amendment will
become effective after the expiration of that period of time, except as to
those Employers as may file an objection. No amendment proposed by
participating Employers shall be effective unless agreed to by the ICMA
Retirement Corporation over the signature of an Officer.
PART I. DEFERRED COMPENSATION
EMPLOYMENT AGREEMENT
1. Deferred Compensation--Initial Decision--Future Changes--Limits
1.1 For the purpose of this Plan the following definitions apply:
a. "Total compensation" is the total of compensation to be paid by
the Employer for the services of the Employee, regardless of the
terms used for its components, as, for example, "base pay," "in
addition to base pay," "employer's contributions," etc,;
b. "Deferred compensation" is that amount or percentage of the
total compensation of the Employee which the Employer currently
defers from the payment to the Employee, and, instead, deposits
same into a Deferred Compensation Account with the Retirement
Corporation under the terms of this Plan Deferred compensation
may include amounts from or percentages of both "base pay" and
"employer's contributions" or it may include amounts from or
percentages ol only one of these components;
c. "Current compensation" is that portion of the Employee's total
compensation which is not deferred compensation as deferred
compensation is defined herein; and
d. "Base pay" is the stated salary of the Employee.
1.2 Compensation may be deferred for any calendar month only if a
Joinder Agreement for such deferral has been entered into before
the beginning of such month. The determination of the initial
amount or percentage and of any future change in amount or
percentage of deferred compensation must be made before the
beginning of the calendar month for which the compensation is
payable. Such future changes may be made more frequently than
once per calendar year only at the express direction of the
Employer.
1.3 The amount of total compensation may be adjusted from time to
time without altering the terms of this Plan. However, the per-
centage or amount of deferred compensation may be adjusted only
in accordance with 1.2 above. Any such adjustment of the per-
centage or amount of deferred compensation shall be com-
municated to the Employer's agent, the Retirement Corporation,
and the deposits in the adjusted percentages or amounts, if
changed from the prior existing percentages or amounts, shall
thereafter be made by the Employer into its Retirement Corpora-
tion Account.
1.4 Compensation deferred under the Plan for any Employee's
taxable year beginning after December 31, 1978, shall not exceed
the lesser of (1) $7,500, or (2) 33-1/3 percent of the difference
between an Employee's total compensation and his deferred
compensation, except as provided in 1.5 below.
1.5 For one or more of the Employee's last three taxable years ending
before he attains normal retirement age under the Plan, the ceiling
set forth in Paragraph 1.4 above shall be the lesser of --
a. $15,000, or
b the sum of-
(1 ) the Plan ceiling established for purposes of Paragraph 1.4
for the taxable year (determined without regard to this
Paragraph), plus
(2) so much of the Plan ceiling established for purposes
of Paragraph 1 4 for taxable years before the taxable year
as has not theretofore been used under Paragraph 1.4 or
this Paragraph.
The amount of compensation deferred under this Paragraph shall
not exceed an Employee's total compensahon The words "normal
retirement age," as used in this Paragraph, shall mean the
"designated age," as defined in Paragraph 6 below.
2. Deferred Compensation Account. Under this Plan, deferred compen-
sation shall be credited and paid into the Trust established and
maintained with the International City Management Association Re-
tirement Corporation as Trustee The Retirement Corporation is a
nonprofit corporation formed for the specific purpose of investing and
otherwise administering the funds of said Trust The Trust may be revoked
at any time by the Employer, and upon revocation of said Trust. all of the
assets thereof shall return to and revert to the Employer. The Emptoyer
shall keep accurate books and records with respect to the Employee's
total compensation or other earned income and with respect to amounts
paid into said Trust
3. Ownership of Funds. Neither the Employee nor any beneficiary
thereof shall have any interest whatsoever in the funds paid into the
Deferred Compensation Account, in the property or rights purchased with
such funds, or in the income attributable to such funds, property, or rights,
which shall at all times remain as assets of the Employer, subject to its
absolute dominion, control, and right of withdrawal until such time as the
funds or assets of the Account are distributed to the Employee tn
accordance with the provisions of this Plan. The obligation of the
Employer to pay deferred compensation is contractual only, the
Employee having no preferred or special interest or claim, by way of trust.
annuity, or otherwise, in and to the specific funds and assets held in the
Deferred Compensation Account The contractual obligation of the
Employer to pay the funds and assets in its Deferred Compensation
ACCOUnt to the Employee or his beneficiary on the applicable distribution
date shall be a continuing obligation upon the Employer, and shall not be
relieved by any agreement between the Employer and any other party,
except as provided in Section 2 of Paragraph 13 of this Plan, and shall not
be affected in any manner by amendment or revocation of the Trust
referred to in Paragraph 2 herein or by reversion of the Trust Funds to the
Employer. The provisions of this Paragraph shall supersede and control
any other provision of this Plan which could be interpreted to be in conflict
therewith.
4. Administration of Funds The funds deposited in the Deferred
Compensation Account shall be invested and reinvested by the Retire-
ment Corporation, as provided for in the Trust Fund described in Part II of
this Plan, in any manner which in its sole discretion it deems desirable,
without regard at any time to any legal limitation governing the investment
of such funds. The Account shall also reflect the gain or loss resulting
from the investment and reinvestment thereof. This Trust Fund may be
commingled with others established by the Trustee with other Employers
under this Plan
5. Designation of Investments. Each participating Employer, being
advised of the preferences of, and for the benefit of each of its
participating Employees, shall designate the percentage of the deferred
compensation involved which shall be invested in the respective types of
investment funds (accounts) of the Retirement Corporation, such as the
Equity (Variable) Fund or the Fixed-Income Fund, unless the laws of the
applicable state or local government require otherwise, in which case
those laws shall govern. Future elections to change the percentage to be
invested in each type of Fund may only be made prior to and for the next
succeeding annual period of service for which the compensation is
payable by filing written notice thereof with the Retirement Corporation.
Such notice will not be effective until received by the Retirement
Corporation.
6. Payment of Deferred Compensation. The words "designated age," as
used in this Paragraph and ~n Paragraph 10 of th~s Plan, shall mean the
designated age which appears in the Joinder Agreement executed by the
participating Employee. These words, as used in th~s Paragraph, ~n
Paragraph 10. and in the Joinder Agreement, shall also include the
following, without repet,tion thereto: "or later, in the sole discretion of the
Employer. at the end of his employment agreement, if Employee
continues in the employ of the EmpLoyer after he attains the designated
age." Except as provided in Paragraph 9 (unforeseeable emergency), no
payments of deferred compensation shall be made prior to an Employee's
separation from service with the Employer. At such time as the Employee
reaches the designated age, becomes permanently disabled, or dies,
whichever occurs first, he, or his beneficiary or beneficiaries, nominee or
estate is/are entitled to receive payment from the Deferred Compensa-
tion Account outstanding on the date on which one of the foregoing
occurs. Payments occasioned by the Employee having reached the
designated age, becoming permanently disabled, or by his death shall be
made in accordance with the prows~ons of Paragraph 7 hereof as follows:
a. Payments in monthly, quarterly, semi-annual, or annual payments
over the period of life expectancy of the Employee in accordance with
the following procedure
Upon reaching the designated age, or becoming permanently
disabled from permanent full-time employment, whichever first
occurs, the Employee's life expectancy shall be determined by
reference to Standard U.S. Mortality Tables; the amounts of
assets and accumulations in the Deferred Compensation Account
shall be computed together with a reasonable rate of return on
said assets, less the amount of expected monthly distribution,
over the life expectancy of the Employee: and a monthly amount
shall then be mathematically determined, the payment of which, in
equal monthly installments over the period of the life expectancy
of the Employee, shall completely deplete the said Account at the
end of the last year of life expectancy; or
b. Payments in monthly, quarterly, semi-annual, or annual payments
in accordance with the following procedure:
Unless the Employee's employment terminates prior to the time he
attains the designated age, amounts equal to the benefits
received by the Employer, under retirement annuity policies, shaJl
be paid to the Employee, at such time as he attains the designated
age; or, in the case of death, payment to his beneficiary or
beneficiaries, nominee or estate pursuant to the procedures
provided in said policies and Paragraphs 7 and 8 of this Plan; or
c. Payments in monthly, quarterly, semi-annual, or annual install-
ments over a period of not exceeding ten (10) years, said payments to
include a reasonable return on the funds, assets and accumulations in
the Deferred Compensation Account, less the amount of expected
monthly, quarterly, semi-annual, or annual distribution, over the said
ten (10) year period; or
d. One lump-sum payment.
7. Selection of Method of Payment. The method of payment shall be
selected by the Employer, acting through the Retirement Corporation, as
its duly authorized agent, due consideration being given to health,
financial circumstances and family obligations of the Employee. In this
regard, the Employee may be consulted; however, he shall have no voice
in the decision reached,
8, Payments in the Event of Death.
a. During the Period of Distribution. In the event of the Employee's
death during the period of distribution, the Employee's beneficiary
shall be entitled to receive payments in accordance with the payment
method being employed at the time of the Employee's death. With the
consent of the Employer, acting through the Retirement Corporation
as its duly authorized agent, said beneficiary may elect to receive a
lump sum in lieu of installment payments.
b Prior to Distribution. In the event of the death of the Employee prior
to the distribution, the funds and assets of the Deferred Compensa-
tion Account shall be paid in accordance with one of the methods
described in Subparagraphs a, b, c, or d of Paragraph 6 hereof. The
selection of said method shall be made by the Employer acting
through the Retirement Corooration as its duly authorized agent.
9. Payments in the Event of Unforeseeable Emergency. In the event that a
participating Employee is faced with an unforeseeable emergency (de-
termined in the manner prescribed by Federal regulation), the Employer
may direct the Retirement Corporation as agent to make disbursements
from the Deferred Compensation Account of amounts reasonably neces-
sary to satisfy the emergency needs of the Employee.
10. Payment Dates. Payments shall commence on the first day of the
month, following the attainment of the designated age, or later, on the first
day of the month after the end of his employment agreement, if Employee
continues in the employ of the Employer after he attains the designated
age, or likewise following permanent disability, or death; and, in the case of
installment payments, shall be made continuously thereafter on the first
day of each succeeding month, or, in the event quarterly, semi-annual, or
annual payment installment periods are applied, then continuously
thereafter on the first day of each succeeding month which begins the time
period (quarterly, etc.) involved until such time as the Deferred Compensa-
tion Account is depleted in its entirety.
11. D~soursing Agent. The Retirement Corporation shall act as agent of
the Employer for purposes of disbursing payments. The ultimate obligation
for making such payments, however, shall remain with the Employer.
12. Accumulation During the Distribution Period. During the period o~
distribution, the Employee or his beneficiary or beneficiaries, nominee or
estate, as the case may be, shall continue to be credited with all the
interest, accumulations, and increments on the undistributed funds and
assets in the Deferred Compensation Account, until such Account is
depleted in its entirety.
13. Section 1. Termination of Employment. Upon termination of the
Employee's services, for any reason other than death, the funds, assets,
and accumulations in the Deferred Compensation Account shall not be
transferred to an account with a new employer of the Employee, and,
instead, they shall remain in the original Account as assets of the old
Employer until such time as they are distributed in accordance with the
provisions of this Plan, except as provided in Section 2 of this Paragraph.
Section 2. Transfer of Employment with Consideration Between
Employers--Tripartite Agreement. in the event the Employee accepts
en~oloyment with a new employer participating in the ICMA-RC Deferred
Compensation Plan, then, if the past Employer finds that it has no present
or future need of the funds, assets, and accumulations in the said Account
for the payment of its general creditors or for any other purpose what-
soever, in consideration of its desire to avoid the continuing expense of
maintaining records, and receiving, examining, verifying and filing annual
reports of the Retirement Corporation, and in consideration of avoiding the
possible future expenses of litigation of Employee's continuing con-
tractual rights to payment of deferred compensation on his retirement as
herein provided in the event of any possible future revocation and
withdrawal by the past Employer of the funds, assets, and accumulations
in the said Account, the past Employer may, at its discretion, authorize the
Retirement Corporation, as its agent, to propose to the new Employer that
the funds, assets, and accumulations of the said Account be transferred to
the ownership, control, and right of withdrawal of the new Employer, and to
do so in the event the new Employer, in consideration of the increased
value of the Employee's services by reason of the experience gained while
in past employment, agrees to accept same, and the respective
Employers and the Employee sign an appropriate form of Agreement in
which the new Employer also agrees to assume the continuing contractual
liability to pay deferred compensation so transferred upon retirement of
the Employee and the Employee releases the past Employer from said
continuing obligation to do same.
Section 3. Payment of Deferred Compensation after Termination of
Employment. In the event a participating Employee separates from
service with the Employer prior to the designated age which appears in the
Joinder Agreement, the Employer may direct the Retirement Corporation,
as agent, to distribute the funds and assets of the Deferred Compensation
Account to the Employee in one lump-sum peyment.
14. Losses. The Employer shall not be responsible for any loss due to
investment or failure of investment of funds and assets in said Deferred
Compensation Account nor shall the Employer be required to replace any
loss whatsoever which may result from said investments.
15. Nonassignability of Deferred Compensation. The Employee during
his lifetime shall not be entitled to commute, encumber, sell or otherwise
dispose of his rights to receive deferred compensation payments provided
for herein, and the right thereto shall be nonassignable and nontrans-
ferable. In the event of any attempted assignment or transter thereof, the
Employer shall have no further liability under this Agreement.
16. Participation in Other Employee Benefit Plans. Nothing herein con-
tained shall in any manner modify, impair, or affect the existing or future
rights or interest of the Employee (a) to receive any employee benefits to
which he would otherwise be entitled, or (b) as a participant in any future
pension plan, it being understood that the rights and interests of the
Employee to any employee benefits or as a participant or beneficiary in or
under any or all such plans respectively shall continue in full force and
effect unimpaired, and the Employee shall have the right at any time
hereafter to become a beneficiary under or pursuant to any and all such
plans.
17. Definitions. The meaning of any term or terms, phrase, clause, or
sentence used in this Agreement, which is also used in the By-Laws of the
Retirement Corporation, shall be defined as these are defined in ARTICLE
II, Section 2 of the By-Laws Masculine Dronouns, whenever used herein,
include the feminine pronouns, and the singular includes the plural unless
the context requires another meaning.
18. Validity of Agreement, This Agreement shall not be valid or en-
forceable unless signed by an officer of Employer, authorized by the
governing body of the Employer, as, for example, the City Council, and
unless this Agreement is implemented by the execution of the Joinder
Agreement.
PART II. MASTER TRUST AGREEMENT
AGREEMENT made by and between the aforenamed Employer and the
International City Management Association Retirement Corporation
(hereinafter the "Trustee" or "Retirement Corporation"), a nonprofit
corporation organized and existing under the laws of the State of
Delaware, for the purpose of investing and otherwise administering the
funds set aside by Employers in connechon with Deferred Compensation
Agreements with Employees.
WHEREAS, the Employer desires to enter into agreements with its
Employees whereby its Employees agree to defer payments of specified
percentages of or amounts from their total compensation as "deferred
compensation" is defined in said agreements until the occurrence of
certain events;
WHEREAS. in order that there will be sufficient funds available to
discharge the foregoing contractual obligations, the Employer desires to
set aside periodically amounts equal to the amount of compensation
deferred;
WHEREAS, the funds set aside, together with any and alt investments
thereto, are to be exclusively within the dominion, control, and ownership
of the Employer, and subject to the Employer's absolute right of with-
drawal, the Employee having no interest whatsoever therein;
NOW, THEREFORE, this Agreement witnesseth that (a) the Employer
will pay monies to the Trustee to be placed in Deferred Compensation
Accounts for the Employer; (b), the Trustee covenants that it will hold said
sums, and any other funds which it may receive hereunder, in trust for the
uses and purposes and upon the terms and conditions hereinafter stated;
and (c) the parties hereto agree as follows:
ARTICLE I. General Duties of the Parties.
Section 1.1. General Duty of the Employer. The Employer shall make
regular periodic payments equal to the amounts of its Employees'
compensation which are deferred in accordance with the terms and
conditions of Deferred Compensation Employment Agreements with such
Employees, or with any subsequent modification thereof.
Section 1.2. General Duties of the Trustee. The Trustee shall hold all
funds received by it hereunder, which, together with the income therefrom,
shall constitute the Trust Funds It shall administer the Trust Funds, collect
the income thereof, and make payments therefrom, all as hereinafter
provided. The Trustee shall also hold all Trust Funds which are transferred
to it as successor Trustee by the Employer from existing deferred
compensation arrangements with its Employees which meet the same
Internal Revenue Code requirements which govern the ICMA-RC Deferred
Compensation Plan..Such Trust Funds shall be subject to all of the terms
and provisions of this Agreement.
ARTICLE II. Powers and Duties of the Trustee in Investment,
Administration, and Disbursement of the Trust Funds,
Section 2.1. Investment Powers and Duties of the Trustee, The
Trustee shall have the power ~n its discretion to invest and reinvest the
principal and income of the Trust Funds and keep the Trust Funds
invested, without distinction between principal and income, in such
securities or in other property, real or personal, wherever situated, as the
Trustee shall deem advisable, including, but not limited to, stocks,
common or preferred, bonds, retirement annuity and insurance policies,
mortgages, and other evidences of indebtedness or ownership, and in
common trust funds of approved financial or investment institutions, with
such institutions acting as Trustee of such common trust funds, or
separate and different types of funds (accounts) including equity, fixed-
income, and those which fulfill requirements of state and local govern-
mental laws, established with such approved financial or investment
institutions. For these purposes, these Trust Funds may be commingled
with others established by the Trustee under this form of agreement with
other Employers. In making such investments, the Trustee shall not be
subject at any time to any legal limitation governing the investment of such
funds. Investment powers and investment discretion vested in the Trustee
by this Section may be delegated by the Trustee to any ban~, ~nsurance or
trust company, or any investment advisor, manager or agent selected by it.
Section 2.2. Administrative Powers of the Trustee. The Trustee shall
have the Dower in its discretion:
(a) To purchase, or subscribe for, any securities or other property
and to retain the same in trust.
(b) To sell, exchange, convey, transfer or otherwise dispose of any
securities or other property held by it, by private contract, or at
public auction. No person dealing with the Trustee shall be bound
to see the application of the purchase money or to inquire into the
validity, expediency, or propriety of any such sale or other
disposition.
(c) To vote upon any stocks, bonds, or other securities; to give
general or special proxies or powers of attorney with or without
power of substitution; to exercise any conversion privileges,
subscription rights, or other options, and to make any payments
incidental thereto; to oppose, or to consent to, or otherwise
participate in, corporate reorganizations or other changes af-
fecting corporate securities, and to delegate discretionary powers,
and to pay any assessments or charges in connection therewith;
and generally to exercise any of the powers of an owner with
respect to stocks, bonds, securities or other property held as part
of the Trust Funds.
(d) To cause any securities or other property held as part of the
Trust Funds to be registered in its own name, and to hold any
investments in bearer form, but the books and records of the
Trustee shall at all times show that all such investments are a part of
the Trust Funds.
(e) To borrow or raise money for the purpose of the Trust in such
amount, and upon such terms and conditions, as the Trustee shall
deem advisable; and, for any sum so borrowed, to issue its
promissory note as Trustee, and to secure the repayment thereof
by pledging all, or any part, of the Trust Funds. No person lending
money to the Trustee shall be bound to see the application of the
money lent or to inquire into its validity, expediency or propriety of
any such borrowing.
(f) To keep such portion of the Trust Funds in cash or cash
balances as the Trustee, from time to time, may deem to be in the
best interest of the Trust created hereby, without liability for
interest thereon.
(g) To accept and retain for such time as it may deem advisable any
securities or other property re(~eived or acquired by it as Trustee
hereunder, whether or not such securities or other property would
normally be purchased as investments hereunder.
(h) To make, execute, acknowledge, and deliver any and all
documents of transfer and conveyance and any and all other
instruments that may be necessary or appropriate to carry out the
powers herein granted.
(i) To settle, compromise, or submit to arbitration any claims,
debts, or damages due or owing to or from the Trust Funds; to
commence or defend suits or legal or administrative proceedings;
and to represent the Trust Funds in all suits and legal and
administrative proceedings.
(j) To do all such acts, take all such proceedings, and exercise all
such rights and privileges, although not specifically mentioned
herein, as the Trustee may deem necessary to administer the Trust
Funds and to carry out the purposes of this Trust.
Section 2.3. Distributions from the Trust Funds. The Employer hereby
appoints the Trustee as its agent for purposes of selecting the method by
which distributions from the Trust Funds are to be made, as well as for
purposes of making such distributions. In this regard the terms and
conditions set forth in the Agreements to be executed between the
Employer and its Employees. and any subsequent modifications thereof,
are to guide and control the Trustee's power.
Section 2.4. Valuation of Trust Funds. At least once a year aa of
Valuation Dates designated by the Trustee, the Trustee shall determine
the value of the Trust Funds. Assets of the Trust Funds shall be valued at
their market values at the close of business on the Valuation Date, or, inthe
absence of readily ascertainable market values as the Trustee shall
determine, in accordance with methods consistently followed and uni-
formly applied.
ARTICLE III. For Protection of Truatee.
Section 3.1. Evidence of Action by Employer. The Trustee may rely
upon any certificate, notice or direction purporting to have been signed on
behalf of the Employer which the Trustee believes to have been signed by a
duly designated official of the Employer. No communication .shall be
binding upon any of the Trust Funds or Trustee until they are received by
the Trustee.
Section 3.2. Advice of Counsel. The Trustee may consult with any
legal counsel with respect to the construction of this Agreement, its duties
hereunder, or any act, which it proposes to take or omit, and shall not be
liable for any action taken or omitted in good faith pursuant to such advice.
Section 3.3. Miscellaneous. The Trustee shall use ordinary care and
reasonable diligence, but shall not be liable for any mistake of judgment or
other action taken in good faith. The Trustee shall not be liable for any Io~s
sustained by the Trust Funds by reason of any investment made in good
faith and in accordance with the provisions of this Agreement.
The Trustee's duties and obligations shall be limited to those expressly
imposed upon it by this Agreement, notwithstanding any reference of the
Plan.
ARTICLE IV. Taxes, Expenses and Compensation of TrvItle.
Section 4.1. Taxes. The Trustee shall deduct from and charge against
the Trust Funds any taxes on the Trust Funds or the income thereof or
which the Trustee is required to pay with respect to the interest of arty
person therein.
Section 4.2. Expenses. The Trustee shall deduct from and charge
against the Trust Funds all reasonable expenses incurred by the Trustee in
the administration of the Trust Funds, including counsel, agency and other
necessary fees.
ARTICLE V. Settlement of Accounts. The Trustee shall keep ac-
curate and detailed accounts of all investments, receipts, disbursements,
and other transactions hereunder.
Within ninety (90) days after the close of each fiscal year, the Trustee
shall render in duplicate to the Employer an account of it.~ acts and
transacbons as Trustee hereunder. It any part o7 rrm Trust Fund shall be
~nvested mrougn me medium of any common, collective or commingled
Trust Funds, the last annual report of such Trust Funds shall be submitted
with and incorporated in the account.
If within ninety (90) days after the mailing of the account or any amended
account the Employer has not filed with the Trustee notice of any objection
to any act or transaction of the Trustee, the account or amended account
shall become an account stated. If any objection has been filed, and if the
Employer is satisfied that it should be withdrawn or if the account is
adjusted to the Employer's satisfaction, the Employer shall in writing filed
with the Trustee signify approval of the account and it shall become an
account stated.
When an account becomes an account stated, such account shall be
finally settled, and the Trustee shall be completely discharged and
released, as if such account had been settled and allowed by a judgment or
decree of a court of competent jurisdiction in an action or proceeding in
which the Trustee and the Employer were parties.
The Trustee shall have the right to apply at any time to a court of
competent jurisdiction for the judicial settlement of its account.
ARTICLE VI. Resignation and Removal of Trustee.
Section 6.1. Resignation of Trustee. The Trustee may resign at any
time by filing with the Employer its written resignation. Such resignation
shall take effect sixty (60) days from the date of such filing and upon
appointment of a successor pursuant to Section 6.3., whichever shall first
occur.
Section 6.2. Removal of Trustee. The Employer may remove the
Trustee at any time by delivering to the Trustee a written notice of its
removal and an apppointment of a successor pursuant to Section 6.3.
Such removal shall not take effect prior to sixty (60) days from such
delivery unless the Trustee agrees to an earlier effective date.
Section 6.3. Appointment of Successor Trustee. The apointment of a
successor to the Trustee shall take effect upon the delivery to the Trustee
of (a) an instrument in writing executed by the Employer appointing such
successor, and exonerating such successor from liability for the acts and
omissions of its predecessor, and (b) an acceptance in writing, executed
by such successor.
All of the provisions set forth herein with respect to the Trustee shall
relate to each successor with the same force and effect as if such
successor had been originally named as Trustee hereunder.
If a successor is not appointed within sixty (60) days after the Trustee
gives notice of its resignation pursuant to Section 6.1., the Trustee may
apply to any court of competent jurisdiction for appointment of a
successor.
Section 6.4. Transfer of Funds to Successor. Upon the resignation or
removal of the Trustee and appointment of a successor, and after the final
account of the Trustee has been properly settled, the Trustee shall
transfer and deliver any of the Trust Funds involved to such successor.
ARTICLE VII. Duration and Revocation of Trust Agreement.
Section 7.1. Duration and Revocation. This Trust shall continue for
such time as may be necessary to accomplish the purpose for which it was
created but may be terminated or revoked at any time by the Employer as it
relates to any and/or all related participating Employees. Written notice of
such termination or revocation shall be given to the Trustee by the
Employer. Upon termination or revocation of this Trust, all of the assets
thereof shall return to and revert to the Employer. Termination of this Trust
shall not, however, relieve the Employer of the Employer's continuing
obligation to pay deferred compensation upon the applicable distribution
date to any and/or each Employee with whom the Employer has entered
into a Deferred Compensation Employment Agreement.
Section 7.2. Amendment. The Employer shall have the right to amend
this Agreement in whole and in part but only with the Trustee's written
consent. Any such amendment shall become effective upon (a) delivery to
the Trustee of a written instrument of amendment, and (b) the endorsement
by the Trustee on such instrument of its consent thereto.
ARTICLE VIII. Miscellaneous.
Section 8.1. Laws of the State of Delaware to Govern. This Agreement
and the Trust hereby created shall be construed and regulated by the laws
of the State of Delaware.
Section 8.2. Successor Employers. The term "Employer" shall include
any person who succeeds the Employer and who adopts the Deferred
Compensation Plan of the Retirement Corporation and becomes a party to
this Agreement with the consent of the Trustee.
Section 8.3. Withdrawals. The Employer may, at any time, and from
time to time, withdraw a portion or all of the Trust Funds created by this
Agreement and related Deferred Compensation Employment
Agreements.
Section 6.4. Definitions~ Definitions in the By-Laws of terms, phrases,
etc., used herein apply to the same herein. The masculine includes the
feminine and the singular includes the plural unless the context requires
another meaning.
6
Check One [] New Agreement [] Amendment of Previous Agreement
[] Change of Beneficiary Only
Print Name of Employer
JOINDER AGREEMENT
To the ICMA Retirement Corporation deferred
compensation plan.
[] Mr. [] Ms. [] Mrs. [] Miss
From: Full Name
First
Middle
Last
AMOUNT OF DEFERRED COMPENSATION
NOTICE: Effective January 1, 1979, federal law prohibits any person from
deferring more than 25% of total compensation or $7,500, whichever is
lower. Total compensation is your salary, including any amounts deferred.
:ffective on the payday shown below, I desire to be paid, in the form of
leferred compensation, as follows:
(Employee's (Employer's
Method of Designating Contribet~on) Contribution) Total
D~ferrod Compensation
{Use Only One) Base pay shall be Base pay shall be
reduced by added to by
(1) Percentage Method %: % %
(2) Dollar Method $ $ $
(per pay period)
Payday on which plan is to begin
Mo.
My current salary is $
I am paid every (2 wccks, month, 15 days, etc.):
Day Yr.
per pay period.
ALLOCATION TO INVESTMENT FUNDS
I request that the total amounts of deferred compensation be applied to the
available investment funds in the following percentages (See ICMA-RC An-
nual Report for discussion of tunds):
Whore
Fund Percenlages
Balanced Fund
Bond Fund
Oovernmen! Securme5 Fund
Guaranteed InteresI Fund
understand that where state or local law restricts the nature of the invest-
ment of these funds that it will be necessary to restrict the investment choice
to those available under the law.
ESSENTIAL EMPLOYEE INFORMATION
Date of Birth
Mo.
Social Security Number
Sex: [] M ~ F Day Yr.
Jo fie Department
Home Address City State Zip
No. Street
DESIGNATION OF BENEFICIARY (See Instructions)
Note: When amending your agreement do not complete this section unless you wish to change beneficiaries.
Relationship to you,
To whom shall the proceeds be payable in case of your death? Give first name, middle initial, and last name: Mary A.
Smith (not Mrs. John Smith). For your children, you may simply use the term "My Children" and leave the Date of
Birth and Relationship columns blank. This term will provide equal treatment among your children---present and
future---born of any and all marriages and any children legally adopted at any time.
Prima~ aener~iar~ie=) (C~ I):
Contingent Beneficia~/(ies) (Class II), if any:
The right to change beneficiaries is reserved to me.
NOTE: If no Primary Beneficiary (Class I) is living at time of your death, the proceeds are payable to the Contingent
Beneficiary(les) (Class II). If a Class includes more than one person, the proceeds are divided equally
among the living beneficiaries of the Class.
Date of Birth
Mo. Day Year
i.e., wife, son, daughter.
(If none, state whether
friend, creditor, etc.)
FOR SUPPLEMENTAL PROVISIONS
~ The undersigned hereby applies for participation in the ICMA Retirement Corporation deferred compensation plan as established by my employer. I
understand my participation is subject to my employer's agreement, given below, and will be governed by the plan document, its amendments, and this
agreement, including the general provisions appearing on the reverse side. I have read paragraph 4 on the reverse side of this agreement, and certify that the
amount I have said I want to defer does not exceed 25% of my total compensation or $7,500, whichever is lower.
Employee Signature Employer Approval and Agreement
Signature Date
*You cannot sign your own Joioder Agreement for employer approval. If you
also act as your employer's authorized official, have another employee au-
thorized to sign your agreement.
Signature of Authorized Official * Date
Print Name and Title of Official