HomeMy WebLinkAbout92-0122 401a Plan _ qa-0\a'
RESOLUTION
AUTHORIZING EXECUTION OF A MONEY PURCHASE PLAN AND
TRUST ADOPTION AGREEMENT
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Larry L. Rice, City Manager, be and is hereby
authorized and directed to execute a Money Purchase Plan and
Trust Adoption Agreement on behalf of the City of Elgin with
the ICMA Retirement Corporation for the 401(a) plan, a copy of
which is attached hereto and made a part hereof by reference. .
s/ George VanDeVoorde
George VanDeVoorde, Mayor
Presented: January 22, 1992
Adopted: January 22, 1992
Omnibus Vote: Yeas 6 Nays 0
Recorded:
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
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.
REC'D BY/!CMA-n
JAN 3 11997
CLIEI I , S RVICES
ICMA RETIREMENT CORPORATION
PROTOTYPE MONEY PURCHASE-PLAN
& TRUST ADOPTION AGREEMENT
(#001)
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 Corporation Prototype Money Purchase Plan and Trust. This Plan is an
amendment and restatement of an existing defined contribution money purchase plan. ❑ Yes 0 No
If yes,please specify the name of the defined contribution money purchase plan which this Plan hereby amends and restates:
I. Employer: City of Elgin, Illinois
II. Prototype Sponsor:
Name: ICMA Retirement Corporation
Address: 777 N.Capitol Street,N.E.
Washington,D.C.20002-4240
Telephone Number: (202)962-4600
III. The Effective Date of the Plan shall be the first day of the Plan Year during which the Employer adopts
the Plan,unless an alternate Effective Date is hereby specified:
IV. Plan Year will mean:
0 The twelve(12)consecutive month period that coincides with the limitation year. (See Section
6.05(i)of the Plan.)
® The twelve(12)consecutive month period commencing on 1/1/9 2 and each
anniversary thereof. •
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V. Normal Retirement Age shall be age 50 (not to exceed age 65).
VL ELIGIBILITY REQUIREMENTS:
1. The following group or groups of Employees are eligible to participate in the Plan:
❑ All Employees
❑ All Full-Time Employees
❑ Salaried Employees
CI Non-Union Employees
❑ Management Employees
❑ Public Safety Employees
❑ General Employees
❑ Other(specify below)
2. The Employer hereby waives or reduces the requirement of a twelve(12)month Period of Service for
participation. The required Period of Service shall be N/A (write N/A if an Employee
is eligible to participate upon employment).
If this waiver or reduction is elected,it shall apply to all Employees within the Covered Employment
Classification.
3. A minimum age requirement is hereby specified for eligibility to participate. The minimum age re-
quirement is N/A (not to exceed age 21. Write N/A if no minimum age is declared.)
VII. CONTRIBUTION PROVISIONS
1. The Employer shall contribute as follows(choose one):
E$ Fixed Employer Contributions With or Without Mandatory Participant Contributions.
The Employer shall contribute on behalf of each Participant 4 % of
Earnings or$ for the Plan Year(subject to the limitations of Article VI
• of the Plan). Each Participant is required to contribute 2 %of Earnings or
$ for the Plan Year as a condition of participation in the Plan. (Write"0"
if no contribution is required.) If Participant contributions are required under this option, a
Participant shall not have the right to discontinue or vary the rate of such contributions after
becoming a Plan Participant.
The Employer hereby elects to"pick up"the Mandatory/Required Participant Contribution.
❑ Yes No
[Note to Employer. Neither an opinion letter issued by the Internal Revenue Service with respect
to the Prototype Plan,nor a determination letter issued to an adopting Employer is a ruling by the
Internal Revenue Service that Participant contributions that are picked up by the Employer are not
includable in the Participant's gross income for federal income tax purposes. The Employer may
seek such a ruling.
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Picked up contributions are excludable from the Participant's gross income under Section
414(h)(2)of the Internal Revenue Code of 1986 only if they meet the requirements of Rev.Rul.
81-35, 1981-1 C.B.255. Those requirements are(1) that the Employer must specify that the
contributions,although designated as Employee contributions,are being paid by the Employer
in lieu of contributions by the Employee; and (2) the Employee must not have the option of
receiving the contributed amounts directly instead of having them paid by the Employer to the
Plan.]
❑ Fixed Employer Match of Participant Contributions.
The Employer shall contribute on behalf of each Participant % of
• Earnings for the Plan Year(subject to the limitations of Articles V and VI of the Plan)for each
Plan Year that such Participant has contributed % of Earnings or
$ . Under this option,there is a single,fixed rate of Employer contribu-
tions,but a Participant may decline to make the required Participant contributions in any Plan
Year,in which case no Employer contribution will be made on the Participant's behalf in that
Plan Year.
❑ Variable Employer Match of Participant Contributions.
The Employer shall contribute on behalf of each Participant an amount determined as follows
(subject to the,limitations of Articles V and VI of the Plan):
❑ %of the contributions made by the Participant for the Plan Year
(not including Participant contributions exceeding %of Earn-
ings or$ );
CI PLUS %of the contributions made by the Participant for the
Plan Year in excess of those included in the above paragraph(but not including
Participant contributions exceeding in the aggregate %of
Earnings or$ ).
❑ Employer contributions on behalf of a Participant for a Plan Year shall not exceed
• $ or %of Earnings,whichever is
more or less.
2. Each Participant may make a voluntary(unmatched),after-tax contribution,subject to the limitations of
Section 4.04 and Articles V and VI of the Plan.
a Yes ❑ No
3. Employer contributions and Participant contributions shall be contributed to the Trust in accordance with
the following payment schedule:
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VIII. EARNINGS
Earnings,as defined under Section 2.09 of the Plan,shall include:
(a) Overtime ❑ Yes ❑ No
(b) Bonuses 0 Yes 0 No
IX. LIMITATION ON ALLOCATIONS
If the Employer(i)maintains or ever maintained another qualified plan in which any Participant in this Plan is(or
was)a participant or could possibly become a participant,and/or(ii)maintains a welfare benefit fund(as defined
in Section 419(e)of the Code)or an individual medical account(as defined in Section 415(1)(2)of the Code,under
which amounts are treated as Annual Additions with respect to any Participant in this Plan,the Employer hereby
agrees to limit contributions to all such plans as provided herein,if necessary,in order to avoid excess contributions
(as described in Sections 6.03 and 6.04 of the Plan).
A. If the Participant is covered under another qualified defined contribution plan maintained by the Employer,
other than a Master or Prototype Plan,the provisions of Section 6.02(a)through(f)of the Plan will apply
as if the other plan were a Master or Prototype Plan,unless another method has been indicated below.
❑ Other Method. (Provide the method under which the plans will limit total Annual
Additions to the Maximum Permissible Amount,and will properly reduce any excess
amounts,in a manner that precludes Employer discretion.)
B. If the Participant is or has ever been a participant in a defined benefit plan maintained by the Employer,
and if the limitation in Section 6.04 of the Plan would be exceeded,then the Participant's Projected Annual
Benefit under the defined benefit plan shall be reduced in accordance with the terms thereof to the extent
necessary to satisfy such limitation. If such plan does not provide for such reduction,or if the limitation
is still exceeded after the reduction,annual additions shall be reduced to the extent necessary in the manner
described in Sections 6.01 through 6.03.The methods of avoiding the limitation described in this paragraph
will not apply if the Employer indicates another method below.
0 Other Method. (Note to Employer. Provide below language which will satisfy the 1.0
limitation of section 415(e)of the Code. Such language must preclude Employer
discretion. See section 1.415-1 of the Regulations for guidance.)
C. The limitation year is the following twelve(12)consecutive month period:
1/1 to 12/31
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X. VESTING PROVISIONS
The Employer hereby specifies the following vesting schedule,subject to(1)the minimum vesting requirements as
noted and(2)the concurrence of the Plan Administrator.
Years of Specified Minimum
Service Percent Vesting
Completed Vesting Requirements**
Less than One inn % No minimum
One % No minimum
Two % No minimum
Three % Not less than 20%
Four 9'o Not less than 40%
Five g'o Not less than 60%
Six % Not less than 80%
Seven or more % Must equal 100%
(**These minimum vesting requirements conform to the Code's three- to seven-year vesting schedule. If the employee
becomes 100%vested by the completion of five years of service,them is no minimum for years three and four.)
XI. INVESTMENT OPTION
❑ %A Participant may direct his/her investment only to or into an investment option that provides a guarantee
of principal.
❑ A Participant may direct his/her investment of not more than %in an investment
option which does not provide any guarantee of principal.
(Z1 A Participant may direct his/her investment,without restriction,among various investment options
available under the Trust.
0 Specify any other investment restrictions.
XII. BENEFITS UPON SEPARATION
1. Upon separation from service for reason other than death,disability,or attainment of Normal Retirement
Age,the Participant may elect to commence receiving benefits from the following accounts,without regard
to age:
a) Employer Contribution Account(Nonforfeitable Interest) $8 Yes 0 No
b) Participant Contribution Account(if applicable) ji4 Yes 0 No
c) Participant Portable Benefits Account a Yes 0 No
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2. If"no"to any of the above,the earliest age at which the Employer will allow a distribution from the
Employer Contribution Account,the Participant Portable Benefits Account,and/or the Participant
Contribution Account,if applicable,is
3. Notwithstanding Subsection(2)above,a distribution shall be made pursuant to Section 10.04 of the Plan,
De Minimis Accounts.Further,the Participant shall be entitled to request that his/her entire Nonforfeitable
Interest in his/her Account be transferred to another plan,pursuant to Section 10.03 of the Plan.
XIII. Loans are permitted under the Plan,as provided in Article XIV. EX Yes 0 No
XIV. The Employer hereby attests that it is a unit of state or local government or an agency or instrumentality
of one or more units of state or local government.
XV. The Prototype Sponsor hereby agrees to inform the Employer of any amendments to the Plan made
pursuant to Section 15.05 of the Plan or of the discontinuance or abandonment of the Plan.
XVI. The Employer hereby appoints the Prototype Sponsor as the Plan Administrator pursuant to the terms
and conditions of the ICMA RETIREMENT CORPORATION PROTOTYPE MONEY PURCHASE
PLAN&TRUST.
The Employer hereby agrees to the provisions of the Plan&Trust.
XVII. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption
Agreement may result in disqualification of the Plan.
XVIII. An adopting Employer may not rely on a notification letter issued to the Prototype Sponsor by the Inter-
nal Revenue Service as evidence that the Plan is qualified under section 401 of the Internal Revenue
Code. In order to obtain reliance with respect to plan qualification,the Employer must apply to the
appropriate key district office for a determination letter.
This Adoption Agreement may be used only in conjunction with basic Plan document number 001.
In Witness Whereof, the Employer hereby causes this Agreement to be executed on this day of
, 19
EMPLOYE' J
Accepted:I RE C 'ATION
By: .4._41.4 - By:
Title: _ ' ' , h ,0 .' •: Title: V I ' ' -
Attestest ...• ' c' /-
These
These prototype documents have been submitted to the IRS for aPpr.val as . form.It is anticipated that such IRS approval
will be received at some time during 1991.When that occurs,ICMA Retirement Corporation will distribute the approved
version of the prototype documents for adoption by employers.
ICMA RETIREMENT CORPORATION,CORPORATE HEADQUARTERS,777 NORTH CAPITOL STREET,NE,WASHINGTON,DC 20002-4240
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