HomeMy WebLinkAboutItem 4.3 Gov Money Purchase Plan & Trust ICMA
STAFF REPORT CITY CLERK
File #600-30
CITY COUNCIL
DATE:March 1, 2016
TO:
Honorable Mayor and City Councilmembers
FROM:
Christopher L. Foss, City Manager
SUBJECT:
Approval of Governmental Money Purchase Plan and Trust Adoption Agreement
with International City Management Association Retirement Corporation
Prepared by Lisa Hisatomi, Assistant Administrative Services Director
EXECUTIVE SUMMARY:
The City Council will consider the approval of a Governmental Money Purchase Plan and Trust
Adoption Agreement with International City Management Association Retirement Corporation
(ICMA-RC) for the City’s 401(a) Plan.
FINANCIAL IMPACT:
Approval of the agreement will have no financial impact to City funds. The City is not making
any contributions on behalf of employees to the plan. Applicable fees are covered by employee
contributions held in the trust.
RECOMMENDATION:
Resolution
Staff recommends that the City Council adopt the Authorizing the City Manager to
Execute a Governmental Money Purchase Plan and Trust Adoption Agreement With
International City Management Association Retirement Corporation.
Submitted By Reviewed By
Administrative Services Director Assistant City Manager
DESCRIPTION:
In 2005 the City Council adopted Resolution 116-05 amending the City’s benefit plan, and
Resolution 167-05 establishing the City’s 401(a) Governmental Money Purchase Plan. The
401(a) plan allows employees to defer a portion of their salary during employment and accrued
vacation benefits when they separate from the City for retirement, over and above the amount
that can be deferred into the 457 deferred compensation program offered by the City. The plan
is subject to limitations established by the Internal Revenue Service (IRS), which reviews the
plan document every six years.
ITEM NO. 4.3
Page 1 of 2
Since August 2005, the City has contracted with ICMA-RC to provide administrative services for
the plan. ICMA-RC recently submitted its updated plan documents to the IRS for review and
approval. The updated documents incorporate amendments for legislative and regulatory
changes that have occurred since the City Council approved the contract in 2005. There are no
substantial changes to the plan itself, and no changes to the provision of this discretionary
benefit to employees.
Staff recommends that the City Council adopt the attached resolution that will continue the City’s
participation in the 401(a) Plan.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS:
1.Resolution Authorizing the City Manager to Execute a Governmental
Money Purchase Plan and Trust Adoption Agreement with
International City Management Association Retirement Corporation
with Agreement as Exhibit A to the Resolution
Page 2 of 2
RESOLUTION NO. XX - 16
A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF DUBLIN
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
AUTHORIZING THE CITY MANAGER TO EXECUTE A GOVERNMENTAL MONEY
PURCHASE PLAN AND TRUST ADOPTION AGREEMENT WITH INTERNATIONAL CITY
MANAGEMENT ASSOCIATION RETIREMENT CORPORATION
WHEREAS
, on June 21, 2005, the City Council adopted Resolution No. 116-05, which
amended the City’s Benefit Plan; and
WHEREAS
, on August 16, 2005, the City Council adopted Resolution No. 167-05,
which established the 401(a) Governmental Money Purchase Plan with International City
Management Association Retirement Corporation (ICMA-RC);
WHEREAS,
included in the amendment provisions to the benefit plan was a provision to
allow employees to participate, on a voluntary basis, to defer additional funds towards
retirement on a tax deferral basis;
WHEREAS,
the 401(a) program would not require any additional contributions by the
City on behalf of employees;
WHEREAS,
ICMA-RC has been the administrator for the City’s 401(a) plan since 2005;
WHEREAS,
the IRS has a six-year review schedule for 401 plan documents. Following
the IRS schedule, ICMA-RC has updated its plan documents to incorporate amendments for
legislative and regulatory changes;
NOW, THEREFORE, BE IT RESOLVED
that the City Council of the City of Dublin
approves ICMA Retirement Corporation Governmental Money Purchase Plan & Trust Adoption
Agreement attached as Exhibit A to the Resolution.
BE IT FURTHER RESOLVED
that the City Council of City of Dublin hereby authorizes
the City Manager to execute the agreement on behalf of the City of Dublin.
PASSED, APPROVED, AND ADOPTED
this 1st day of March 2016, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________
Mayor
ATTEST:
___________________________
City Clerk
ATTACHMENT 1
ICMA RETIREMENT CORPORATION
GOVERNMENTAL MONEY PURCHASE PLAN & TRUST
ADOPTION AGREEMENT
ICMA RETIREMENT CORPORATION
GOVERNMENTAL MONEY PURCHASE PLAN & TRUST
ADOPTION AGREEMENT
Plan Number ___ ___ ___ ___
CITY OF DUBLIN (FPDP)
(the Plan) in the form of the ICMA Retirement Corporation Gove
Yes No
4
CITY OF DUBLIN (FPDP)
________________________________________________________________
CITY OF DUBLIN (FPDP)
I. Employer: ______________________________________________
4 1.
2.
_____________________________________
3.
will mean:
Plan Year
4
Normal Retirement Age shall be age _____ (not to exceed age 65).
Important Note to Employers
industry in which the covered workforce is employed. An age unde
Commissioner of Internal Revenue determines that the facts and c
Money Purchase Plan Adoption Agreement
faith, reasonable determination will generally be given deferenc
of the Code, in which case an age of 50 or later is deemed not t
of the typical retirement age for the industry in which the cove
ELIGIBILITY REQUIREMENTS
All Employees
___
All Full Time Employees
___
Salaried Employees
___
Non union Employees
___
Management Employees
___
Public Safety Employees
___
General Employees
___
___
4
Permanent Employees
acceptable.)
________________________________________________
requirements cannot be such that an Employee becomes eligible on
employment. As stated in Sections 4.07 and 4.08, the Plan may, however, pr
Note:
Accrued Leave Contributions are the only contributions made unde
N/A
employment)____________________.
to exceed age 21. Write N/A if no minimum age is declared.)
VI. CONTRIBUTION PROVISIONS
1. (Choose all that apply, but at least one of Options A or B. If O
selected, Employer must pick up Participant Contributions under
(If Option B is chosen, please
Fixed Employer Contributions With or Without Mandatory Partici
complete section C.)
$ __________ for the Plan Year (subject to the limitations of
Mandatory Participant Contributions
are required are not required
4
to be eligible for this Employer Contribution.
B. Mandatory Participant Contributions for Plan Participation.
Required Mandatory Contributions. A Participant is required to c
Yes No
4
Money Purchase Plan Adoption Agreement
Employee Opt-In Mandatory Contributions. Each Employee eligible
opportunity to irrevocably elect to participate in the Mandat
below for each Plan Year (subject to the limitations of Artic
Yes No
Contribution Schedule.
(i) ______% of Earnings,
(ii) $ ________ , or
(insert range of
(iii) a whole percentage of Earnings between the range of __
percentages between 1% and 20% inclusive (e.g., 3%, 6%, or 2
, as designated by the
Employee in accordance with guidelines and procedures establ
as a condition of participation in the Plan. A Participant m
right to discontinue or vary the rate of such contributions
1
(pick
up is required if Option A is not selected).
Yes 4 No
(Yes is the default provision under the Plan if no selection i
C. Election Window (Complete if Option B is selected):
Newly eligible Employees shall be provided an election windo
days) from the date of initial eligibility during which they
Participant Contribution portion of the Plan. Participation i
An Employees election is irrevocable and shall remain in fo
ceases to be eligible to participate in the Plan. In the even
Employees original election will resume. In no event does th
contribution amount directly.
A. Fixed Employer Match of Voluntary After-Tax Participant
of each Participant ___% of Earnings for the Plan Year (subj
Plan Year that such Participant has contributed ____% of Ear
contributions in any Plan Year, in which case no Employer co
that Plan Year.
behalf of each Participant an amount determined as follows (
____ % of the Voluntary Participant Contributions made by t
Participant contributions exceeding ____% of Earnings or $ _
1
Neither an IRS advisory letter nor a determination letter issued
Participant contributions that are picked up by the Employer a
purposes. Pick-up contributions are not mandated to receive priv
ruling on pick-up contributions they may request one in accordan
Money Purchase Plan Adoption Agreement
PLUS ______% of the contributions made by the Participant f
above paragraph (but not including Voluntary Participant Con
the aggregate ____% of Earnings or $ ______ ).
Employer Matching Contributions on behalf of a Participant
$ ______ or ____% of Earnings, whichever is ___ more or ___
Each Participant may make a voluntary (unmatched), after tax con
Article V of the Plan:
Yes 4 No
(No is the default provision under the Plan if no selection is
Employer contributions for a Plan Year shall be contributed to t
depending on the basis on which the Employer keeps its books) wi
or in accordance with applicable law):
BI-WEEKLY
_______________________________________________________________
Participant contributions for a Plan Year shall be contributed t
applicable depending on the basis on which the Employer keeps it
year ends, or in accordance with applicable law):
BI-WEEKLY
_______________________________________________________________
Employer:
Yes No
(Yes is the default provision under the Plan if no selection is
4
___________________________________________________
B. Participants who die or become disabled will receive Plan
Yes No
(No is the default provision under the Plan if no selection is
4
____________________________________________________
Money Purchase Plan Adoption Agreement
VII. EARNINGS
1. Overtime
4 Yes No
2. Bonuses
Yes No
4
ROLLOVER PROVISIONS
4
Yes No
(Yes is the default provision under the Plan if no selection i
date in the space provided.
December 31, 2009.)
LIMITATION ON ALLOCATIONS
participant or could possibly become a participant, the Employ
provided herein, if necessary in order to avoid excess contrib
provisions of Section 5.02(a) through (e) of the Plan will ap
Other Method. (Provide the method under which the plans will lim
Permissible Amount, and will properly reduce any excess amoun
on or after July 1, 2007. ___________________________________
legislative body with authority to amend the plan that begins
Money Purchase Plan Adoption Agreement
VESTING PROVISIONS
concurrence of the Plan Administrator. (For the blanks below, en
the year in which 100% is entered), in ascending order.)
Period of
Service
Percent
Completed
Vested
%
Zero
One%
Two%
%
Four%
Five%
Six%
Seven%
Eight%
Nine%
Ten%
WITHDRAWALS AND LOANS
1. In-service distributions are permitted under the Plan after
Normal Retirement Age
Age 70½
(70½ is the default provision under the Plan if no selection i
4
Alternate age (after Normal Retirement Age): ___________________
Not permitted at any age
2. A Participant shall be deemed to have a severance from empl
from the Plan during any period the individual is performing s
4
Yes No
(Yes is the default provision under the plan if no selection i
3. Tax-free distributions of up to $3,000 for the direct paymen
4
Yes No
(No is the default provision under the Plan if no selection is
4. In-service distributions of the Rollover Account are permitt
Yes 4 No
(No is the default provision under the Plan if no selection is
5. Loans are permitted under the Plan, as provided in Article
Yes 4 No
(No is the default provision under the Plan if no selection is
Money Purchase Plan Adoption Agreement
SPOUSAL PROTECTION
1.
2.
4
no selection is made.)
and survivor annuity with the spouse (or life annuity, if single). I
commencing payments, the spouse will receive an annuity for
requirements in Article XII also will apply.)
FINAL PAY CONTRIBUTIONS
4 All Eligible Employees
Other: _________________________________________________________
Accrued unpaid vacation
4 A.
Accrued unpaid sick leave
B.
Accrued unpaid vacation and sick leave
C.
Other
D.
:
________________________________________________
Employer Final Pay Contribution.
1.
Final Pay to the Plan (subject to the limitations of Article
4
Each Employee eligible to participate in the Plan shall be
Employee Designated Final Pay Contribution.
2.
of Final Pay
to the Plan (subject to the limitations of Article V of the
Once elected, an Employees election shall remain in force
Money Purchase Plan Adoption Agreement
ACCRUED LEAVE CONTRIBUTIONS
All Eligible Employees
Other: _________________________________________________________
Accrued unpaid vacation
A.
Accrued unpaid sick leave
B.
Accrued unpaid vacation and sick leave
C.
D.
_________________________________________________
Employer Accrued Leave Contribution.
1.
options):
For each Plan Year, the Employer shall contribute on behalf of e
Accrued Leave in excess of _______________ (insert number
(subject to the limitations of Article V of the Plan).
For each Plan Year, the Employer shall contribute on behalf of e
unused Accrued Leave to the Plan (subject to the limitatio
2.
Employee Designated Accrued Leave Contribution.
Each eligible Participant shall be given the opportunity at
of accrued unpaid leave to be contributed) of Accrued Leave
the Plan). Once elected, an Employees election shall remain
units of state or local government.
Plan
and Trust is a restatement of a previous plan, which was subm
disapproves, the Plan Administrator will be under no obligatio
conditions of the ICMA RETIREMENT CORPORATION GOVERNMENTAL MON
TRUST.
Money Purchase Plan Adoption Agreement
XVIII.
An adopting Employer may rely on an advisory letter issued by t
XIX.
In Witness Whereof, the Employer hereby causes this Agreement to
EMPLOYER ICMA RETIREMENT CORPORATION
777 North Capitol St., NE Suite 600
Washington, DC 20002
800-326-7272
By: _____________________________________________ By: _________________________________________
Print Name: ______________________________________ Print Name: __________________________________
Title: ___________________________________________ Title: _______________________________________
Attest:___________________________________________ Attest: ______________________________________
Money Purchase Plan Adoption Agreement
ICMA RETIREMENT CORPORATION
777 NORTH CAPITOL STREET, NE | WASHINGTON, DC 20002-4240
800-669-7400
WWW.ICMARC.ORG
BRC000-214-21268-201405-W1303