HomeMy WebLinkAbout90-0228 ICMA ,
RESOLUTION
ESTABLISHING A MONEY PURCHASE RETIREMENT PLAN
WHEREAS, the City of Elgin has employees rendering valuable services; and
WHEREAS, the establishment of a money purchase retirement plan benefits
employees by providing funds for retirement and funds for their beneficiaries in the
event of death; and
WHEREAS, the City of Elgin desires that its money purchase retirement plan be
administered by the ICMA Retirement Corporation and that the funds held under such
plan be invested in the ICMA Retirement Trust, a trust established by public employers
for the collective investment of funds held under their money purchase retirement plans
and deferred compensation plans.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ELGIN, ILLINOIS, that the City of Elgin, unless it has already done so, hereby establishes
a money purchase retirement plan in the form of the plan and trust attached hereto. The
plan and trust adopted by the City of Elgin shall be maintained for the exclusive benefit
of eligible employees and their beneficiaries; and
BE IT FURTHER RESOLVED that the City of Elgin hereby authorizes Larry Rice,
City Manager, to execute the Declaration of Trust attached hereto; and
BE IT FURTHER RESOLVED that the City of Elgin, unless it has already done so,
hereby agrees to serve as trustee under the money purchase retirement plan and to invest
all funds held under such plan in the ICMA Retirement Trust; and
BE IT FURTHER RESOLVED that the City Manager shall be the coordinator for
this program and shall receive necessary reports, notices, etc. from the ICMA Retire-
ment Corporation or the ICMA Retirement Trust, and shall cast, on behalf of the
Employer, any required votes under the program. Administrative duties to carry out the
program may be assigned to the appropriate departments.
s / George VanDeVoorde
George VanDeVoorde, Mayor
Presented: February 28, 1990
Adopted: February 28 , 1990
Vote: Yeas 7 Nays 0
Recorded:
Attest:
n/
Marip Yparman
Marie Yearman, City Clerk
ICMA
RETIREMENT
CORPORATION
PROTOTYPE MONEY PURCHASE PLAN & TRUST
ADOPTION AGREEMENT
The Employer hereby establishes a Money Purchase Plan and Trust to be known as
Elgin Non-Union Money Purchase Plan (The "Plan") in the form of the ICMA Retirement
(nam•Of p.n)
Corporation Prototype Money Purchase Plan and Trust.
This Plan is an amendment and restatement of an existing defined contribution pension plan. 0 Yes 0 No
If yes, please specify the name of the defined contribution pension plan which this Plan hereby amends and
restates:
A. Employer: City of Elgin, Illinois 4. Normal Retirement Age shall be 60 (not
to exceed age 65).If a different Normal Retirement
B. The Effective Date of the Plan shall be the first day : Age is established for one or more groups of
of the Plan Year during which the Employer adopts Employees, please specify.
the Plan,unless an alternate Effective Date is hereby
specified: • Age Group
50 Police & Fire
C. Plan Year will mean:
( ) the 12-consecutive month period which coincides
with the limitation year. (See section 5.05(h) of
the Plan.)
(X) the 12-consecutive month period commencing E. CONTRIBUTION PROVISIONS
on 1-1-90 and each anniversary thereof.
1. The Employer shall contribute as follows (choose
one):
D. ELIGIBILITY REQUIREMENTS:
1. The following group or groups of Employees are ( )Fixed Percentage Employer Contributions With
eligible to participate in the Plan: Or Without Mandatory Employee Contributions.
All Employees The Employer shall contribute on behalf of
All Full-Time Employees each Participant 2 % of Earnings
Salaried Employees • for the Plan Year(subject to the limitations of
X Non-union Employees Article V of the Plan). Each Participant is
Management Employees required to contribute ______1____% of
Public Safety Employees Earnings for the Plan Year as a condition of par-
General Employees ticipation. (Write "0" if no contribution is
Other (specify below) required.)
2. The Employer hereby waives or reduces the The Employer hereby elects to "pick up" the
requirement of a twelve-month Period of Service for Mandatory/Required Participant Contribution.
participation. The period of service shall be X Yes No
(write N/A if an Employee is eligible
to participate upon employment). [Note to Employer: Neither an opinion letter
issued by the Internal Revenue Service with
If this waiver or reduction is elected, it shall apply respect to the prototype plan,nor a determina-
to all Employees within the Covered Employment
Classification. tion letter issued to an adopting employer is a
ruling by the Internal Revenue Service that Par-
3. A minimum age requirement is hereby specified for ticipant contributions that are picked up by the
eligibility to participate.The minimum age require- Employer are not includable in the Participant's
ment is N/A (not to exceed age 21).Write gross income for federal income tax purposes.
N/A if no minimum age is declared. The Employer may seek such a ruling.
1
Picked up contributions are excludable from 3. Employer contributions and Participant contribu-
the Participant's gross income under section tions shall be contributed to the Trust in accordance
414(hX2)of the Internal Revenue Code of 1986 with the following payment schedule:
only if they meet the requirements of Rev. Rule
81.35, 1981-1 C.B.255.Those requirements are
(1)that the Employer must specify that the con- •
tributions, although designated as employee
contributions, are being paid by the Employer
in lieu of contributions by the employee; and F. EARNINGS
(2)the employee must not have the option of Earnings, which form the basis for computing
receiving the contributed amounts directly Employer contributions, are defined as all of each
instead of having them paid by the Employer participant's:
to the plan.]
( )Fixed Dollar Employer Contributions With Or ( x) W-2 earnings for the plan year which are sub-
Without Mandatory Employee Contributions. ject to tax under section 3101(a) of the Internal
The Employer shall contribute on behalf of Revenue Code without the dollar limitation of
each Participant for the Plan section 3121(a), or which would be subject to
Year (subject to the limitations of Article V of such tax but for section 3121(bX7);plus any con-
the Plan). Each Participant is required to con- tributions through a salary reduction agreement
tribute % of Earnings or to a cash.or deferred plan under section 401(k),
S for the Plan Year as a condition to a tax deferred annuity under section 403(b),
of participation.(Write"0"if no contribution is and compensation voluntarily deferred under an
required.) eligible deferred compensation plan under sec-
tion 457; and excluding overtime compensation
The Employer hereby elects to "pick up" the and bonuses.
Mandatory/Required Participant Contribution.
( ) Earnings as defined above, plus the following
Yes No (check whichever is applicable, if any):
(See the above Note to Employer regarding Overtime Bonuses
the tax treatment of picked up contributions.] which are actually paid within such Plan Year.
( )Employer Percentage Match Of Employee
Contributions. G.LIMITATION ON ALLOCATIONS
The Employer shall contribute on behalf of If you maintain or ever maintained another qualified
each Participant an amount determined as plan in which any participant in this plan is (or was)
follows(subject to the limitations of Article V of a participant or could possibly become a participant,
the Plan): you must complete this section.
%of the contributions made by
the Participant for the Plan Year(not including 1. If the participant is covered under another qualified
Participant contributions exceeding defined contribution plan maintained by the
% of Earnings of employer, other than a master or prototype plan:
S
( )The provisions of section 5.02(a)through(g)will
PLUS % of the contributions apply as if the other plan were a master or pro-
made by the Participant for the Plan Year in totype plan.
excess of those included in the above
paragraph (but not including Participant con- ( )Other Method. (Provide the method under
tributions exceeding in the aggregate which the plans will limit total annual additions
% of Earnings or $_). to the maximum permissible amount, and will
Em I r contributions on behalf of a Partici- properlyehreduce any excess amounts,in a man-
p oye precludes employer discretion.)
pant for a Plan Year shall not exceed
$ or % of Earnings,
whichever is more or less.
2. Each Participant may make a voluntary, after-tax
contribution, subject to the limitations of Section
4.04 and Article V of the Plan. 2. If the participant is or has ever been a participant
X in a defined benefit plan maintained by the
Yes No employer:
2
( )If the limitation in section 5.04 would be ex- A Participant may direct his/her investment
ceeded,then the participant's projected annual of not more than % in an in-
benefit under the defined benefit plan shall be vestment option which does not provide any
reduced in accordance with the terms thereof guarantee of principal.
to the extent necessary to satisfy such limita- X A Participant may direct his/her investment,
tion. If such plan does not provide for such without restriction, among various invest-
reduction, or if the limitation is still exceeded ment options available under the Trust.
after the reduction, annual additions shall be
reduced to the extent necessary in the manner Specify any other Investment restrictions
described in sections 5.01 through 5.03.
( )Other Method. (Note to Employer: Provide
below language which will satisfy the 1.0limita-
tion of section 415(e) of the Code. Such
language must preclude Employer discretion.
I See section 1.415-1 of the Regulations for J. BENEFITS UPON SEPARATION
guidance.) 1. Upon separation from service for reason other than
death,disability or attainment of Normal Retirement
Age,the Participant may elect to commence receiv-
ing benefits from the following accounts, without
regard to age:
a) Employer Contribution Account (Nonforfeitable
Interest)
3. The limitation year is the following 12-consecutive X Yes No
month period:
1/1 t o 12/31 b) Participant Contribution Account (if applicable)
X Yes No
H.VESTING PROVISIONS c) Participant Portable Benefits Account
The Employer hereby specifies the following vesting Yes No
schedule, subject to 1) the minimum vesting re-
quirements as noted(either Type 1 or Type 2)and 2)
the concurrence of the Plan Administrator. 2. If "no" to any of the above, the earliest stage is
1 e 2 ,at which the Employer will allow a disiribu-
TYPe
`bars of Specified Minimum Minimum tion from the Employer Contribution Account, the
Service Percent Vesting vesting Participant Portable Benefits Account, and/or the
Completed vesting Requirements** Requirements** Participant Contribution Account, if applicable.
Zero 100 % No minimum No Minimum 3, Notwithstanding Section J(2) above, a distribution
One % No minimum No Minimum shall be made pursuant to Section 9.05 of the Plan,
Two % No minimum No Venarum De Minimis Accounts. Further,the Participant shall
Threeo % No minimum No Minimum entitled to make a rollover contribution pursuant
Four % Not less then 40% No Minimum
Fire % Not less then 159b Mus egad 100% to Section 9.03 of the Plan.
Six % Not less then 50% Must equal 100%
Seven % *Ness than 60% Must equal 100%
Eight % Not less then 70% Must equal 100% K. Loans are permitted under the Plan, as provided in
Nine % WI less than 60% Must equal 100% Article XIII:
Ten % Not less hen 6096 Must aqua/100% X Yes • No
Eleven, 100 % Must equal t00% Must equal 10096
a more
("These minimum vesting requirements conform to the L WAIVER OF FUNDING (complete this section only if
IRS's Four-Forty and Five-year Cliff schedules,which are waiver of minimum funding applied for)
the most restrictive schedules for which an advance deter-
minationIfto Plan Year,
ruling for qualification will be issued by the IRS msatisfy the minimum funding
without a pre-test for nondiscrimination.) ntal standard
nue Sr a ervice for a war,may apply
ly to the
um ter-
I. INVESTMENT OPTION ding standard. If the waiver is granted, the following
A Participant may direct his/her investment provisions shall apply and suspend any contrary pro-
only in an investment option which provides vision:
a guarantee of principal.
3
M.The Employer hereby attests that it is a unit of state Cl An adopting Employer may not rely on an opinion let-
or local government or an agency or instrumentality of
et-or|oca|governmemdoramagencyorinodru,nenta|ityof ter issued by the National Office of the Internal
one of more units of state or local government. Revenue Service as evidence that the Plan is qualified
under Section 401 of the Internal Revenue Code. In The Employer hereby appoints the ICMA Retirement order to obtain reliance with respect to plan qualifica-
Corporation
as the Plan Administrator pursuant to tion, theEmployermust �pp|� to �haappropriateheythotermoand conditions of the ICMA RETIREMENT
district office for a determination letter.
CORPORATION PROTOTYPE MONEY PURCHASE
PLAN AND TRUST. This Adoption Agreement may be used only in co 'umc-iion with basic Plan document number 01.
The Employer hereby agrees to the provisions of the
Plan and Trust.
In Witness Whereof, the Employer hereby causes this Agreement to be executed on this day of
. 19____.
EMPLOYER ICMA RETIREMENT/CORPORATION
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By: 1111, °�-°-�� /11111111111111
_ ' By� ~�� ��n—
Tlde: & e v Title: V.?
Attest: I��� ' ' - `^^� Attest:
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401005
•
• I 1'
• TELEPHONE 708/695.6500
In
`,� CITY OF ELGIN 150 DEXTER COURT ELGIN, ILLINOIS 60120.5555
r//
April 16 , 1990
Ms, Marca Grattet
ICMA
77 N. Capitol Street
N.E. Washington, D.C. 20002
Dear Ms. Grattet:
Per our telephone conversation of this P.M. , this is to confirm
that the execution date of the City of Elgin Money Purchase Plan
Agreement is March 8 , 1990.
Sincerely,
(9 / -
Olufe,i Folarin
OF:db
- ^� N 1013 � O X41 I O 9 ^z : b T NO W 06 - 9 T - a .Ati
k
State of Illinois
County of Kane ss Certificate of City Clerk
City of Elgin
I, Marie Yearman, DO HEREBY CERTIFY that I am the City Clerk of the City of Elgin,
Illinois, and that as such City Clerk I am the keeper and custodian of the files and records of
said City of Elgin and the seal thereof.
I DO FURTHER CERTIFY that the attached is a full,true,and correct copy of
"Resolution Establishing a Money Purchase Retirement Plan"
the original of which is entrusted to my care for safe keeping.
\ In Witness Whereof,I have hereunto set my hand and affixed the corporate seal of the
City of Elgin at the said City in the County and State aforesaid this 6th day of
March , 1990
ity Clerk.
(SEAL)