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HomeMy WebLinkAboutRES 3013CITY OF RENTON, WASHINGTON RESOLUTION NO. 3013 A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, AUTHORIZING THE ESTABLISHMENT OF A DEFERRED COMPENSATION PLAN TO BE ADMINISTERED BY THE ICMA RETIREMENT CORPORATION AS AN ALTERNATIVE TO THE HARTFORD DEFERRED COMPENSATION PLAN CURRENTLY AVAILABLE TO CITY EMPLOYEES. WHEREAS, the City of Renton has employees rendering valuable service; and WHEREAS, the establishment of a deferred compensation plan for such employees serves the interests of the City of Renton by enabling it to provide reasonable retirement security for its employees, by providing increased flexibility in its personnel management system, and by assisting in the attraction and retention of competent personnel; and WHEREAS, the City of Renton has determined that the establishment of a deferred compensation plan to be administered by the ICMA Retirement Corporation serves the above objectives; and WHEREAS, the City of Renton wishes to offer the ICMA Retirement Corporation Deferred Compensation Plan as an alternative to the Hartford Deferred Compensation Plan currently available to City employees; and WHEREAS, the City of Renton desires that its deferred compensation 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 retirement and deferred compensation plans; 1 RESOLUTION NO. 3013 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO RESOLVE AS FOLLOWS: SECTION I. The above recitals are found to be true and correct in all respects. SECTION II. The City of Renton hereby adopts the ICMA Retirement Corporation Deferred Compensation Plan, attached hereto as Appendix A. SECTION III. The City of Renton has executed the Declaration of Trust of the ICMA Retirement Trust, attached hereto as Appendix B, intending this execution to be operative with respect to any retirement or deferred compensation plan subsequently established by the City of Renton, if the assets of the plan are to be invested in the ICMA Retirement Trust. SECTION IV. The Director of Personnel shall be the coordinator for this program; shall receive necessary reports, notices, etc. from the ICMA Retirement Corporation or the ICMA Retirement Trust and shall cast, on behalf of the City of Renton, any required votes under the ICMA Retirement Trust. The administrative duties to carry out the plan may be assigned to the appropriate departments, and the Director of Personnel is authorized to execute all necessary agreements with the ICMA Retirement Corporation incidental to the administration of the plan. PASSED BY THE CITY COUNCIL this 15th day of November , 1993. RESOLUTION NO. 3013 APPROVED BY THE MAYOR this 15th day of November 1993 Earl Clymer, M,ayvor /2 Apprm/Sa as to Lawrence J. Warren, City Attorney RES.327:ll/l/93:as. 3 Y t� � „�fv# �.�� ..1' s a� ,����h.,r"�.fi���'�m.sa r•a ��d `. °mow..2i •c"A ' s �' � n r '�'r a '✓<' Cb' ' r ration . ICMA Retirement Co �o 457 Deferred Compensation`Plan . 1 �PtiE Rea�n`Bookl_et � � Ak— ; lei +''ti t'.,,Fek yt 'kSpTF '3 L r 2 ��t'1C�Ud1, V., —l"z�ts��� 4L*. 4 �� c • Plaaoc montf �� Declaratin � #° int # _�� r`tyf'9`,b 'st°,`ka� v 3 :ya.%'pr�. 'rima^>G � fr�"'v A d1-9. '>•.. the ICMA Retrrenent ' uslxp Retain this bap aflSi L ae �. w� IMA a ♦ti� ick k v Y �w'', Zj USING THE 457 DEFERRED COMPENSATION PLAN RETAIN BOOKLET This Booklet includes: • Plan Document • Declaration of Trust of the ICMA Retirement Trust This is one of two booklets containing information relating to your 457 Deferred Compensation Plan with the ICIVIA Retirement Corporation. Please read the information and retain it for your files. If you have any questions concerning information in this booklet, contact the Client Services staff, ton-free at (800) 3.26-7272. Y Y S, Deferred Compensation Plan Document ,e (Appendix A) �{ 4-7 Ak RZ r _ t - C f r ' ° t i �. -a :a tiW-� yAP. 5 xF ` ssx: i t T'. Section 2.11 Plan Year:The calendar year. Section 5.02 Catch-Up Limitation: For each of the last Section 2.12 Retirement:The first date upon which both three(3)taxable years of a Participant ending be- of the following shall have occurred with respect to fore his attainment of Normal Retirement Age,the a participant: Separation from Service and attain- maximum amount of Deferred Compensation shall ment of age 65. be the lesser of:(1)$15,000 or(2)the sum of(i)the Normal Limitation for the taxable year,and (ii)the Section 2.13 Separation from Service: Severance of Normal Limitation for each prior taxable year of the the Participant's employment with the Employer Participant commencing after 1978 less the amount which constitutes a"separation from service"within of the Participant's Deferred Compensation for such the meaning of Section 402(e)(4)(A)(iii)of the Code. prior taxable years. A prior taxable year shall be In general, a Participant shall be deemed to have taken into account under the preceding sentence severed his employment with the Employer for pur- only if(i)the Participant was eligible to participate in poses of this Plan when, in accordance with the the Plan for such year (or in any other eligible established practices of the Employer,the employ- deferred compensation plan established under ment relationship is considered to have actually Section 457 of the Code which is properly taken into terminated. In the case of a Participant who is an account pursuant to regulations under section 457), independent contractor of the Employer,Separation and (ii) compensation (if any) deferred under the from Service shall be deemed to have occurred Plan(or such other plan)was subject to the deferral when the Participant's contract under which ser- limitations set forth in Section 5.01. vices are performed has completely expired and terminated, there is no foreseeable possibility that Section 5.03 Other Plans:The amount excludable from j the Employer will renew the contract or enter into a a Participant's gross income under this Plan or any new contract for the Participant's services,and it is other eligible deferred compensation plan under not anticipated that the Participant will become an section 457 of the Code shall not exceed$7,500.00 Employee of the Employer. (or such greateramount allowed under Section 5.02 of the Plan), less any amount excluded from gross income under section 403(b), 402(a)(8), or 402 ARTICLE 111.ADMINISTRATION (h)(1)(B)of the Code,or any amount with respect to which a deduction is allowable by reason of a Section 3.01 Duties of Employer:The Employer shall contribution to an organization described in section havethe authorityto make all discretionary decisions 501(c)(18)of the Code. affecting the rights or benefits of Participants which may be required in the administration of this Plan. Section 3.02 Duties of Administrator: The Adminis- ARTICLE VI.INVESTMENTS AND ACCOUNT VALUES trator, as agent for the Employer, shall perform Section 6.01 Investment of Deferred Compensation: nondiscretionary administrative functions in con- All investments of Participant's Deferred Compen- nection with the Plan,including the maintenance of sation made by the Employer,including all property Participants' Accounts, the provision of periodic and rights purchased with such amounts and all reports of the status of each Account, and the income attributable thereto,shall be the sole prop- disbursement of benefits on behalf of the Employer erty of the Employer and shall not be held in trust for in accordance with the provisions of this Plan. Participants or as collateral security forthe fulfillment ARTICLE IV.PARTICIPATION IN THE PLAN of the Employer's obligations under the Plan.Such property shall be subject to the claims of general Section 4.01 Initial Participation: An Employee may creditors of the Employer, and no Participant or become a Participant by entering into a Joinder Beneficiary shall have anyvested interest orsecured Agreement prior to the beginning of the calendar or preferred position with respect to such property or month in which the Joinder Agreement is to become have any claim against the Employer except as a effective to defer compensation not yet earned. general creditor. Section 4.02 Amendment of Joinder Agreement: A Section 6.02 Crediting of Accounts:The Participant's Participant may amend an executed Joinder Account shall reflect the amount and value of the Agreement to change the amount of compensation investments or other property obtained by the Em- not yet earned which is to be deferred(including the ployer through the investment of the Participant's reduction of such future deferrals to zero) or to Deferred Compensation. It is anticipated that the change his investment preference(subject to such Employer's investments with respect to a Partici- restrictions as may result from the nature or terms of pant will conform to the investment preference any investment made by the Employer). Such specified in the Participant's Joinder Agreement, amendment shall become effective as of the begin- but nothing herein shall be construed to require the ning of the calendar month commencing after the Employer to make any particular investment of a date the amendment is executed.A Participant may Participant's Deferred Compensation.Each Partici- at any time amend his Joinder Agreement to change pant shall receive periodic reports,not less frequently the designated Beneficiary, and such amendment than annually,showing the then-current value of his shall become effective immediately. Account. ARTICLE V.LIMITATIONS ON DEFERRALS Section 6.03 Transfers: (a) Incoming Transfers: A transfer may be accepted from an eligible deferred Section 5.01 Normal Limitation: Except as provided in compensation plan maintained by anotheremployer section 5.02, the maximum amount of Deferred and credited to a Participant's Account under the Compensation for any Participant for any taxable Plan if(i)the Participant has separated from service year shall not exceed the lesser of$7,500.00 or 33- with that employer and become an Employee of the 1/3 percent of the Participant's Includible Compen- Employer, and (ii) the other employer's plan pro- sation for the taxable year.This limitation will ordi- vides that such transfer will be made.The Employer w narily be equivalent to the lesser of$7,500.00 or 25 may require such documentation from the prede- percent of the Participant's Normal Compensation. cessor plan as it deems necessary to effectuate the Y , 08/89 DEFERRED COMPENSATION PLAN DOCUMENT ARTICLE I.INTRODUCTION and who has been designated by the Employer as The Employer hereby establishes the Employer's Deferred eligible to participate in the Plan. Compensation Plan, hereinafter referred to as the "Plan." Section 2.06 Includible Compensation:The amount of The Plan consists of the provisions set forth in this document. an Employee's compensation from the Employer for a taxable year that is attributable to services per- The primary purpose of this Plan is to provide retirement formed for the Employer and that is includible in the income and other deferred benefits to the Employees of the Employee's gross income for the taxable year for Employer in accordance with the provisions of Section 457 of federal income tax purposes; such term does not the Internal Revenue Code of 1986,as amended(the"Code"). include any amount excludable from gross income This Plan shall be an agreement solely between the under this Plan or any other plan described in Employer and participating Employees. Section 457(b) of the Code or any other amount excludable from gross income for federal income tax purposes. Includible Compensation shall be deter- ARTICLE II. DEFINITIONS mined without regard to any community property laws. Section 2.01 Account: The bookkeeping account maintained for each Participant reflecting the cu- Section 2.07 Joinder Agreement: An agreement en- mulative amount of the Participant's Deferred Com- tered into between an Employee and the Employer, pensation, including any income, gains, losses, or including any amendments or modifications thereof. increases or decreases in market value attributable Such agreement shall fix the amount of Deferred to the Employer's investment of the Participant's Compensation, specify a preference among the Deferred Compensation,and further reflecting any investment alternatives designated bythe Employer, distributions to the Participant or the Participant's designate the Employee's Beneficiary or Beneficia- Beneficiary and any fees or expenses charged ries, and incorporate the terms, conditions, and against such Participant's Deferred Compensation. provisions of the Plan by reference. Section 2.02 Administrator: The person or persons Section 2.08 Normal Compensation: The amount of named to carry out certain nondiscretionary ad- compensation which would be payable to a Partici- ministrative functions under the Plan,as hereinafter pant by the Employerfor a taxable year if no Joinder described.The Employer may remove any person Agreement were in effect to defer compensation as Administrator upon 60 days' advance notice in under this Plan. writing to such person,in which case the Employer Section 2.09 Normal Retirement Age:Age 70-1/2,un- shall name another person or persons to act as less the Participant has elected an alternate Normal Administrator.The Administrator may resign upon Retirement Age by written instrument delivered to 60 days'advance notice in writing to the Employer, the Administrator prior to Separation from Service. in which case the Employer shall name another person or persons to act as Administrator. A Participant's Normal Retirement Age determines the period during which a Participant may utilize the Section 2.03 Beneficiary:The person or persons desig- catch-up limitation of Section 5.02 hereunder.Once nated by the Participant in his Joinder Agreement a Participant has to any extent utilized the catch-up who shall receive any benefits payable hereunder in limitation of Section 5.02, his/her Normal Retire- the event of the Participant's death.In the event that ment age may not be changed. the Participant names two or more Beneficiaries, A Participant's alternate Normal Retirement Age each Beneficiary shall be entitled to equal shares of may not be earlier than the earliest date that the the benefits payable at the Participant's death, un less otherwise provided in the Participant's Joinder Participant will become eligible retire and receive Agreement. If no beneficiary is designated in the unreduced retirement benefits underthe Employer's basic retirement plan covering the Participant and Joinder Agreement, if the Designated Beneficiary may not be later than the date the Participant will predeceases the Participant, or if the designated attain age 70-1/2.If a Participant continues employ- Beneficiary does not survive the Participant for a period of fifteen (15) days, then the estate of the ust after attaining age 70orm onot having previ- Participant shall be the Beneficiary. usly elected an alternate Normal Retirement Age, the Participant's alternate Normal Retirement Age Section 2.04 Deferred Compensation:The amount of shall not be laterthan the mandatory retirement age, Normal Compensation otherwise payable to the if any, established by the Employer, or the age at Participant which the Participant and the Employer which the Participant actually separates from ser- mutually agree to defer hereunder, any amount vice if the Employer has no mandatory retirement credited to a Participant's Account by reason of a age. If the Participant will not become eligible to transfer under section 6.03, or any other amount receive benefits under a basic retirement plan which the Employer agrees to credit to a Participant's maintained by the Employer,the Participant's alter- Account. nate Normal Retirement Age may not be earlier than Section 2.05 Employee: Any individual who provides age 55 and may not be later than age 70-1/2. services for the Employer,whether as an employee Section 2.10 Participant: Any Employee who has joined of the Employer or as an independent contractor, the Plan pursuant to the requirements of Article IV. Section 2.11 Plan Year:The calendar year. Section 5.02 Catch-Up Limitation: For each of the last Section 2.12 Retirement:The first date upon which both three (3) taxable years of a Participant ending be- of the following shall have occurred with respect to fore his attainment of Normal Retirement Age, the a participant: Separation from Service and attain- maximum amount of Deferred Compensation shall ment of age 65. be the lesser of:(1)$15,000 or(2)the sum of(i)the Normal Limitation for the taxable year, and (ii)the Section 2.13 Separation from Service: Severance of Normal Limitation for each prior taxable year of the the Participant's employment with the Employer Participant commencing after 1978 less the amount which constitutes a"separation from service"within of the Participant's Deferred Compensation for such the meaning of Section 402(e)(4)(A)(iii)of the Code. prior taxable years. A prior taxable year shall be In general, a Participant shall be deemed to have taken into account under the preceding sentence severed his employment with the Employer for pur- only if(i)the Participant was eligible to participate in poses of this Plan when, in accordance with the the Plan for such year (or in any other eligible established practices of the Employer,the employ- deferred compensation plan established under ment relationship is considered to have actually Section 457 of the Code which is properly taken into terminated. In the case of a Participant who is an account pursuant to regulations under section 457), independent contractorof the Employer,Separation and (ii) compensation (if any) deferred under the from Service shall be deemed to have occurred Plan(or such other plan)was subject to the deferral when the Participant's contract under which ser- limitations set forth in Section 5.01. vices are performed has completely expired and Section 5.03 Other Plans:The amount excludable from terminated, there is no foreseeable possibility that a Participant's gross income under this Plan or any the Employer will renew the contract or enter into a other eligible deferred compensation plan under new contract for the Participant's services,and it is section 457 of the Code shall not exceed$7,500.00 not anticipated that the Participant will become an (or such greater amount allowed under Section 5.02 Employee of the Employer. of the Plan),less any amount excluded from gross income under section 403(b), 402(a)(8), or 402 ARTICLE 111.ADMINISTRATION (h)(1)(B)of the Code,or any amount with respect to which a deduction is allowable by reason of a Section 3.01 Duties of Employer: The Employer shall contribution to an organization described in section havethe authorityto make all discretionary decisions 501(c)(18)of the Code. affecting the rights or benefits of Participants which may be required in the administration of this Plan. ARTICLE VI.INVESTMENTS AND ACCOUNT VALUES Section 3.02 Duties of Administrator: The Adminis- trator, as agent for the Employer, shall perform Section 6.01 Investment of Deferred Compensation: nondiscretionary administrative functions in con- All investments of Participant's Deferred Compen- nection with the Plan,including the maintenance of sation made by the Employer,including all property Participants' Accounts, the provision of periodic and rights purchased with such amounts and all reports of the status of each Account, and the income attributable thereto,shall be the sole prop- disbursement of benefits on behalf of the Employer erty of the Employer and shall not be held in trust for in accordance with the provisions of this Plan. Participants oras collateral security forthe fulfillment ARTICLE IV.PARTICIPATION IN THE PLAN of the Employer's obligations under the Plan.Such property shall be subject to the claims of general Section 4.01 Initial Participation: An Employee may creditors of the Employer, and no Participant or become a Participant by entering into a Joinder Beneficiary shall have any vested interest or secured Agreement prior to the beginning of the calendar or preferred position with respect to such property or month in which the Joinder Agreement is to become have any claim against the Employer except as a effective to defer compensation not yet earned. general creditor. Section 4.02 Amendment of Joinder Agreement: A Section 6.02 Crediting of Accounts:The Participant's Participant may amend an executed Joinder Account shall reflect the amount and value of the Agreement to change the amount of compensation investments or other property obtained by the Em- not yet earned which is to be deferred(including the ployer through the investment of the Participant's reduction of such future deferrals to zero) or to Deferred Compensation. It is anticipated that the change his investment preference(subject to such Employer's investments with respect to a Partici- restrictions as may result from the nature or terms of pant will conform to the investment preference any investment made by the Employer). Such specified in the Participant's Joinder Agreement, amendment shall become effective as of the begin- but nothing herein shall be construed to require the ning of the calendar month commencing after the Employer to make any particular investment of a date the amendment is executed.A Participant may Participant's Deferred Compensation.Each Partici- at any time amend his Joinder Agreement to change pant shall receive periodic reports,not less frequently the designated Beneficiary, and such amendment than annually,showing the then-current value of his shall become effective immediately. Account. ARTICLE V.LIMITATIONS ON DEFERRALS Section 6.03 Transfers: (a) Incoming Transfers: A transfer may be accepted from an eligible deferred Section 5.01 Normal Limitation:Except as provided in compensation plan maintained by another employer section 5.02, the maximum amount of Deferred and credited to a Participant's Account under the Compensation for any Participant for any taxable Plan if(i)the Participant has separated from service year shall not exceed the lesser of$7,500.00 or 33- with that employer and become an Employee of the 1/3 percent of the Participant's Includible Compen- Employer, and (ii) the other employer's plan pro- sation for the taxable year.This limitatien will ordi- vides that such transfer will be made.The Employer narily be equivalent to the lesser of$7,500.00 or 25 may require such documentation from the prede- percent of the Participant's Normal Compensation. cessor plan as it deems necessary to effectuate the transfer, to confirm that such plan is an eligible following payment options, provided that such op- deferred compensation plan within the meaning of tion is consistent with the limitations set forth in Section 457 of the Code,and to assure that transfers Section 7.03: are provided for under such plan. The Employer may refuse to accept a transfer in the form of assets (a) Equal monthly,quarterly,semi-annual or annual other than cash, unless the Employer and the paymentsinanamountchosenbytheParticipant, Administrator agree to hold such other assets under continuing until his Account is exhausted; the Plan.Any such transferred amount shall not be (b) One lump-sum payment; treated as a deferral subject to the limitations of Article V, except that, for purposes of applying the (c) Approximately equal monthly, quarterly, semi- limitations of Sections 5.01 and 5.02, an amount annual or annual payments, calculated to deferred during any taxable year under the plan continue for a period certain chosen by the from which the transfer is accepted shall be treated Participant. as if it has been deferred under this Plan during such (d) Annual Payments equal to the minimum taxable year and compensation paid bythe transferor distributions required under Section 401(a)(9)of employershall be treated as if it had been paid by the the Code over the life expectancy of the Employer. Participant or over the life expectancies of the (b) Outgoing Transfers: An amount may be trans- Participant and his/her Beneficiary. ferred to an eligible deferred compensation plan (e) Payments equal to payments made bythe issuer maintained by another employer,and charged to a of a retirement annuity policy acquired by the Participant's Account under this Plan, if(i)the Par- Employer. ticipant has separated from service with the Em- ployer and become an employee of the other em- (f) Any other payment option elected by the ployer, (ii)the other employer's plan provides that Participant and agreed to by the Employer and such transfer will be accepted, and (iii)the Partici- Administrator, provided that such option must pant and the employers have signed such agree- provide for substantially non increasing payments ments as are necessary to assure that the Employer's for any period after the latest benefit liability to pay benefits to the Participant has been commencement date under Section 7.01. discharged and assumed by the other employer. The Employer may require such documentation A Participant's or Beneficiary's election of a from the other plan as it deems necessary to effec- payment option must be made at least 30 days tuate the transfer, to confirm that such plan is an before the payment of benefits is to commence. eligible deferred compensation plan within the If a Participant or Beneficiary fails to make a meaning of section 457 of the Code,and to assure timely election of a payment option, benefits that transfers are provided for under such plan. shall be paid monthly under option(c)above for Such transfers shall be made only under such a period of five years. circumstances as are permitted under section 457 of the Code and the regulations thereunder. Section 7.03 Limitation on Options:No payment option Section 6.04 Employer Liability: In no event shall the may be selected by a Participant or Beneficiary Employer's liability to pay benefits to a Participant under Sections 7.02,7.04,or 7.05 unless it satisfies under Article VI exceed the value of the amounts the requirements of Sections 401(a)(9)and 457(d)(2) credited to the Participant's Account;the Employer of the Code, including that payments commencing shall not be liable for losses arising from deprecia- before the death of the Participant shall satisfy the tion or shrinkage in the value of any investments incidental death benefits requirement under Section acquired under this Plan. 457(d)(2)(B)(i)(1). Unless otherwise elected by the Participant, all determinations under Section 401(a)(9)shall be made without recalculation of life ARTICLE VII.BENEFITS expectancies. Section 7.01 Retirement Benefits and Election on Section 7.04 Post-retirement Death Benefits:(a)Should Separation from Service: Except as otherwise the Participant die after he/she has begun to receive provided in this Article VII, the distribution of a benefits under a payment option, the remaining Participant's Account shall commence as of April 1 P 9 P payments,if an under the payment option shall b of the calendar year after the Plan Year of the P Y Y. P Y P e Y payable to the Participant's Beneficiary commenc- Participant's Retirement,and the distribution of such ing within the 30-day period commencing with the Retirement benefits shall be made in accordance 61st day after the Participant's death, unless the with one of the payment options described in Sec- Beneficiary elects payment under a different pay- tion 7.02.Notwithstanding the foregoing,the Partici- ment option that is available under Section 7.02 pant may irrevocably elect within 60 days following within 60 days of the Participant's death.Any different Separation from Service to have the distribution of payment option elected by a Beneficiary under this benefits commence on a fixed or determinable date section must provide for payments at a rate that is at other than that described in the preceding sentence least as rapid as under the payment option that was which is at least 60 days after the date such election applicable to the Participant. In no event shall the is delivered in writing to the Employer and forwarded Employer or Administrator be liable to the Beneficiary to the Administrator,but not later than April 1 of the for the amount of any payment made in the name of year following the year of the Participant's Retire- the Participant before the Administrator receives ment or attainment of age 70-1/2,whichever is later. proof of death of the Participant. Section 7.02 Payment Options:As provided in Sections (b) If the designated Beneficiary does not continue 7.01, 7.04, and 7.05, a Participant or Beneficiary to live for the remaining period of payments under may elect to have the value of the Participant's the payment option,then the commuted value of any Account distributed in accordance with one of the remaining payments under the payment option shall j ;I 'r If be paid in a lump sum to the estate of the Benefi- mination as to whether such an unforeseeable ciary.In the event that the Participant's estate is the emergency exists shall be based on the merits of Beneficiary,the commuted value of any remaining each individual case. payments under the payment option shall be paid to Section 7.07 Transitional Rule for Pre-1989 Benefit the estate in a lump sum. Elections:Intheeventthat,priortoJanuary1 1989, Section 7.05 Pre-retirement Death Benefits:(a)Should a Participant or Beneficiary has commenced re- the Participant die before he/she has begun to ceiving benefits under a payment option or has receive the benefits provided by Section 7.01, the irrevocably elected a payment option or benefit value of the Participant's Account shall be payable commencement date, then that payment option or to the Beneficiary commencing within the 30-day election shall remain in effect notwithstanding any period commencing on the 91st day after the other provision of this Plan. Participant's death,unless the Beneficiary irrevocably elects a different fixed or determinable benefit com- mencement date within 90 days of the Participant's death. Such benefit commencement date shall be Section 8.01 In General: Except as provided in Section not later than the later of(i)December 31 of the year 8.02, no Participant or Beneficiary shall have any following the year of the Participant's death,or(ii)if right to commute, sell, assign, pledge, transfer or the Beneficiary isthe Participant's spouse,December otherwise convey or encumber the right to receive 31 of the year in which the Participant would have any payments hereunder,which payments and rights attained age 70-1/2. are expressly declared to be non-assignable and (b) Unless a Beneficiary elects a different payment non-transferable. option prior to the benefit commencement date, Section 8.02 Domestic Relations Orders: (a) Allow- death benefits under this Section shall be paid in ance of Transfers: To the extent required under a approximately equal annual installments over five final judgment,decree,or order(including approval years,or over such shorter period as may be neces- of a property settlement agreement)made pursuant sary to assure that the amount of any annual install- to a state domestic relations law, any portion of a ment is not less than$3,500.A Beneficiary shall be Participant's Account may be paid or set aside for treated as if he/she were a Participant for purposes payment to a spouse,former spouse,or child of the of determining the payment options available under Participant.Where necessary to carry out the terms Section 7.02, provided,however,that the payment of such an order, a separate Account shall be option chosen by the Beneficiary must provide for established with respect to the spouse, former payments to the Beneficiary over a period no longer spouse, or child who shall be entitled to make than the life expectancy of the Beneficiary, and investment selections with respect thereto in the provided that such period may not exceed fifteen same manner as the Participant;any amount so set (15)years if the Beneficiary is not the Participant's aside for a spouse,former spouse,or child shall be spouse. paid out in a lump sum at the earliest date that (c) In the event that the Beneficiary dies before the benefits may be paid to the Participant, unless the payment of death benefits has commenced or been order directs a different time or form of payment. completed,the remaining value of the Participant's Nothing in this Section shall be construed to autho- Account shall be paid to the estate of the Beneficiary rize any amount to be distributed under the Plan at in a lump sum. In the event that the Participant's atime or in a form that is not permitted underSection estate is the Beneficiary,payment shall be made to 457 of the Code. Any payment made to a person the estate in a lump sum. other than the Participant pursuant to this Section shall be reduced by required income tax withhold- Section 7.06 Unforeseeable Emergencies: (a) In the ing;the fact that payment is made to a person other event an unforeseeable emergency occurs,a Par- than the Participant may not prevent such payment ticipant may apply to the Employer to receive that from being includible in the gross income of the part of the value of his Account that is reasonably Participant for withholding and income tax reporting needed to satisfy the emergency need. If such an purposes. application is approved bythe Employer,the Partici- pant shall be paid only such amount asthe Employer (b) Release from Liability to Participant: The deems necessary to meet the emergency need,but Employer's liability to pay benefits to a Participant payment shall not be made to the extent that the shall be reduced to the extent that amounts have financial hardship may be relieved through cessa- been paid or set aside for payment to a spouse, tion of deferral under the Plan, insurance or other former spouse,or child pursuant to paragraph(a)of reimbursement,or liquidation of other assets to the this Section. No such transfer shall be effectuated extent such liquidation would not itself cause severe unless the Employer or Administrator has been financial hardship. provided with satisfactory evidence that the Em- ployer and the Administrator are released from any (b)An unforeseeable emergency shall be deemed further claim by the Participant with respect to such to involve only circumstances of severe financial amounts.The Participant shall be deemed to have hardship to the Participant resulting from a sudden released the Employer and the Administrator from unexpected illness, accident, or disability of the any claim with respect to such amounts,in any case Participant or of a dependent(as defined in Section in which(i)the Employer or Administrator has been 152(a) of the Code) of the Participant, loss of the served with legal process or otherwise joined in a Participant's property due to casualty,or other simi- proceeding relating to such transfer,(ii)the Partici- lar and extraordinary unforeseeable circumstances pant has been notified of the pendency of such arising as a result of events beyond the control of the proceeding in the manner prescribed by the law of Participant.The need to send a Participant's child to the jurisdiction in which the proceeding is pending college or to purchase a new home shall not be for service of process in such action or by mail from considered unforeseeable emergencies.The deter- the Employer or Administrator to the Participant's last known mailing address, and (iii) the Partici- ARTICLE X.AMENDMENT OR TERMINATION OF PLAN pant fails to obtain an order of the court in the proceeding relieving the Employer or Administra- The Employer may at any time amend this Plan provided for from the obligation to comply with the judg- that it transmits such amendment in writing to the Administra- ment, decree, or order. for at least 30 days prior to the effective date of the amend- ment.The consent of the Administrator shall not be required (c) Participation in Legal Proceedings: The Em- in order for such amendment to become effective, but the ployer and Administrator shall not be obligated to Administrator shall be under no obligation to continue acting defend against or set aside any judgment, decree, as Administrator hereunder if it disapproves of such amend- or order described in paragraph (a) or any legal ment.The Employer may at any time terminate this Plan. order relating to the garnishment of a Participant's The Administrator may at any time propose an amend- benefits,unless the full expense of such legal action ment to the Plan by an instrument in writing transmitted to the is borne by the Participant. In the event that the Employer at least 30 days before the effective date of the Participant's action(or inaction)nonetheless causes amendment. Such amendment shall become effective un- the Employer or Administrator to incursuch expense, less, within such 30-day period, the Employer notifies the the amount of the expense may be charged against Administrator in writing that it disapproves such amendment, the Participant's Account and thereby reduce the in which case such amendment shall not become effective. Employer's obligation to pay benefits to the Partici- In the event of such disapproval,the Administrator shall be pant. In the course of any proceeding relating to under no obligation to continue acting as Administrator divorce,separation,or child support,the Employer hereunder.If this Plan document constitutes an amendment and Administrator shall be authorized to disclose and restatement of the Plan as previously adopted by the information relating to the Participant's Account to Employer,the amendments contained herein shall become the Participant's spouse, former spouse, or child effective on January 1,1989,and the terms of the preceding (including the legal representatives of the spouse, Plan document shall remain in effect through December 31, former spouse, or child),or to a court. 1988. ARTICLE IX. RELATIONSHIP TO OTHER PLANS AND Except as may be required to maintain the status of the EMPLOYMENT AGREEMENTS Plan as an eligible deferred compensation plan under Section 457 of the Code or to comply with other applicable laws,no This plan serves in addition to any other retirement, amendment or termination of the Plan shall divest any pension,or benefit plan or system presently in existence or Participant of any rights with respect to compensation de- hereinafter established for the benefit of the Employer's ferred before the date of the amendment or termination. employees, and participation hereunder shall not affect ARTICLE XI.APPLICABLE LAW benefits receivable under any such plan or system.Nothing contained in this Plan shall be deemed to constitute an This Plan shall be construed under the laws of the state employment contract or agreement between any Partici- where the Employer is located and is established with the pant and the Employer or to give-any Participant the right intent that it meet the requirements of an "eligible deferred to be retained in the employ of the Employer. Nor shall compensation plan" under Section 457 of the Code, as anything herein be construed to modify the terms of any amended. The provisions of this Plan shall be interpreted employment contract or agreement between a Participant wherever possible in conformity with therequirements of that and the Employer. P Y section. ARTICLE XII. Any notice to a party of this plan document shall be given at the last address provided in writing from one party to another party.Any notice such mailed shall be determined to have been received by such party. L ♦ mak= a°j�� S�Y' Declaration of Trust of the ICMA RetirernehUT-rust 4. NN (A s pet dmxB) W fi L 44, I ff i�rt k jzk 7s'4Az �`C e'er +r � yt-' rvr k "R, � �t»' DECLARATION OF TRUST OF ICMA RETIREMENT TRUST ARTICLE I. NAME DEFINITIONS (o) Retirement Trust. The Trust created by the Section 1.1 Name:The Name of the Trust,as amended and Declaration of Trust. restated hereby,is the ICMA Retirement Trust. (p) Trust Property. The amounts held in the Section 1.2 Definitions: Wherever they are used herein, Retirement Trust on behalf of the Public the following terms shall have the following respective Employers in connection with Deferred meanings: Compensation Plans and on behalf of the Public Bylaws. The bylaws referred to in Section 4.1 Employer Trustees for the exclusive benefit of (a) B Y Y Employees pursuant to Qualified Plans. The hereof,as amended from time to time. Trust Property shall include any income resulting (b) Deferred Compensation Plan. A deferred from the investment to the amounts so held. compensation plan established and maintained by (q) Trustees. The Public Employee Trustees and a Public Employer for the purpose of providing ICMA/RC Trustees elected by the Public Employers retirement income and other deferred benefits to its to serve as members of the Board of Trustees of the employees in accordance with the provision of Retirement Trust. section 457 of the Internal Revenue Code of 1954, as amended. ARTICLE 11. CREATION AND PURPOSE OF THE TRUST; (c) Employees. Those employees who participate in OWNERSHIP OF TRUST PROPERTY Qualified Plans. Section 2.1 Creation: The Retirement Trust is created and (d) Employer Trust. A trust created pursuant to established bythe execution of this Declaration of Trust an agreement between RC and a Public Employer by the Trustees and the Public Employers. for the purpose of investing and administering the Section 2.2 Purpose: The purpose of the Retirement Trust funds set aside by such Employer in connection is to provide for the commingled investment of funds with its Deferred Compensation agreements with held by the Public Employers in connection with their its employees or in connection with its Qualified Deferred Compensation and Qualified Plans. The Plan. Trust Property shall be invested in the Portfolios, in (e) Guaranteed Investment Contract. A contract Guaranteed Investment Contracts,and in other invest- entered into bythe Retirement Trust with insurance ments recommended by the Investment Adviser under companies that provides for a guaranteed rate of the supervision of the Board of Trustees. No part of the return on investments made pursuant to such Trust Property will be invested in securities issued by contract. Public Employers. (f) ICMA. The International City Management Section 2.3 Ownership of Trust Property: The Trustees Association. shall have legal title to the Trust Property. The Public (g) ICMA/RC Trustees. Those Trustees elected by Employers shall be the beneficial owners of the portion the Public Employers who,in accordance with the of the Trust Property allocable to the Deferred Com- provisions of Section 3.1(a) hereof, are also pensation Plans. The portion of the Trust Property members, or former members, of the Board of allocable to the Qualified Plans shall be held for the Directors of ICMA or RC. Public Employer Trustees for the exclusive benefit of (h) Investment Adviser.The Investment Adviser that the Employees. enters into a contract with the Retirement Trust to ARTICLE 111.TRUSTEES provide advice with respect to investment of the Section3.1 Number and Qualification of Trustees:(a)The Trust Property. Board of Trustees shall consist of nine Trustees. Five (1) Portfolios.The Portfolios of investment established of the Trustees shall be full-time employees of a Public by the Investment Adviser to the Retirement Trust, Employer (the Public Employee Trustees) who are under the supervision of the Trustees, for the authorized by such Public Employerto serve as Trustee. purpose of providing investments for the Trust The remaining four Trustees shall consist of two per- Property. sons who, at the time of election to the Board of Q) Public Employee Trustees. Those Trustees Trustees, are members of the Board of Directors of elected bythe Public Employers who,in accordance ICMA and two persons who,at the time of election,are with the provision of Section 3.1(a)hereof,are full- members of the Board of Directors of RC(the ICMA/RC time employees of Public Employers. Trustees. One of the Trustees who is a director of (k) Public Employer Trustees.Public Employers who ICMA,and one of the Trustees who is a director of RC, serve as trustees of the Qualified Plans. shall,at the time of election,be full-time employees of a Public Employer. (1) Public Employer. A unit of state or local (b) No person may serve as a Trustee for more than government, or any agency or instrumentality one term in any ten-year period. thereof,that has adopted a Deferred Compensation Section 3.2 Election and Term: (a)Except for the Trustees Plan or a Qualified Plan and has executed this appointed to fill vacancies pursuant to Section 3.5 Declaration of Trust. hereof, the Trustees shall be elected by a vote of a (m) Qualified Plan. A plan sponsored by a Public majority of the Public Employers in accordance with the Employer for the purpose of providing retirement procedures set forth in the By-Laws. (b) At the first income to its employees which satisfies the election of Trustees,three Trustees shall be elected for qualification requirements of Section 401 of the a term of three years,three Trustees shall be elected for Internal Revenue Code,as amended. a term of two years and three Trustees shall be elected (n) RC.The International City Managemehl Association for a term of one year. At each subsequent election, Retirement Corporation. three Trustees shall be elected fora term of three years and until his or her successor is elected and qualified. Section 3.3 Nominations: The Trustees who are full-time (d) invest and reinvest the Trust Property in the employees of Public Employers shall serve as the Portfolios,the Guaranteed Interest Contracts and Nominating Committee for the Public Employee Trust- in any other investment recommended by the ees. The Nominating Committee shall choose candi- Investment Adviser, but not including securities dates for Public Employee Trustees in accordance with issued by Public Employers, provided that if a the procedures set forth in the By-Laws. Public Employer has directed that its monies be Section 3.4 Resignation and Removal: (a) Any Trustee invested in specified Portfolios or in a Guaranteed may resign as Trustee(without need for prior or subse- Investment Contract, the Trustees of the quent accounting)by an instrument in writing signed by Retirement Trust shall invest such monies in the Trustee and delivered to the other Trustees and accordance with such directions; such resignation shall be effective upon such delivery, (e) keep such portion of the Trust Property in cash or or at a later date according to the terms of the instru- cash balances as the Trustees,from time to time, ment. Any of the Trustees may be removed for cause, may deem to be in the best interest of the by a vote of a majority of the Public Employers. (b) Retirement Trust created hereby without liability Each Public Employee Trustee shall resign his or her for interest thereon; position as Trustee within sixty days of the date on (f) accept and retain for such time as they may deem which he or she ceases to be a full-time employee of a advisable any securities orother property received Public Employer. or acquired by them as Trustees hereunder, Section 3.5 Vacancies: The term of office of a Trustee shall whether or not such securities or other property terminate and a vacancy shall occur in the event of the would normally be purchased as investment death,resignation,removal,adjudicated incompetence hereunder; or other incapacity to perform the duties of the office of (g) cause any securities or other property held as part a Trustee. In the case of a vacancy, the remaining of the Trust Property to be registered in the name Trustees shall appoint such person as they in their of the Retirement Trust or in the name of a nominee, discretion shall see fit(subject to the limitations set forth and to hold any investments in bearerfrom,but the in this Section),to serve for the unexpired portion of the books and records of the Trustees shall at all times term of the Trustee who has resigned or otherwise show that all such investments are a part of the ceased to be a Trustee. The appointment shall be Trust Property; made by a written instrument signed by a majority of the Trustees. The person appointed must be the same (h) make,execute,acknowledge,and deliver any and type of Trustee(i.e.,Public Employee Trustee or ICMA/ all documents of transfer and conveyance and any RC Trustee) as the person who has ceased to be a and all other instruments that maybe necessary or Trustee. An appointment of a Trustee may be made in appropriate to carryout the powers herein granted; anticipation of a vacancy to occur at a later date by (1) vote upon any stock, bonds, or other securities; reason of retirement or resignation,provided that such give general or special proxies or powers of attorney appointment shall not become effective prior to such with or without power of substitution;exercise any retirement or resignation. Whenever a vacancy in the conversion privileges,subscription rights,or other number of Trustees shall occur,until such vacancy is options,and make anypayments incidental thereto; filled as provided in this Section 3.5, the Trustees in oppose,or consent to,or otherwise participate in, office, regardless of their number, shall have all the corporate reorganizations or to other changes powers granted to the Trustees and shall discharge all affecting corporate securities, and delegate the duties imposed upon the Trustees by this Declara- discretionary powers and pay any assessments or tion. A written instrument certifying the existence of charges in connection therewith; and generally such vacancy signed by a majority of the Trustees shall exercise any of the powers of an owner with be conclusive evidence of the existence of such va- respect to stocks, bonds, securities or other cancy. property held as part of the Trust Property; Section 3.6 Trustees Serve in Representative Capacity: (j) enter into contracts or arrangements for goods or By executing this Declaration, each Public Employer services required in connection with the operation agrees that the Public Employee Trustees elected by of the Retirement Trust,including,but not limited the Public Employers are authorized to act as agents to,contracts with custodians and contracts for the and representatives of the Public Employers collec- provision of administrative services; tively. (k) borrow or raise money for the purposes of the ARTICLE IV.POWERS OF TRUSTEES Retirement Trust in such amount,and upon such terms and conditions,as the Trustees shall deem Section 4.1 General Powers: The Trustees shall have the advisable,provided that the aggregate amount of power to conduct the business of the Trust and to carry such borrowings shall not exceed 30% of the on its operations. Such power shall include, but shall value of the Trust Property. No person lending not be limited to,the power to: money to the Trustees shall be bound to see the (a) receive the Trust Property from the Public application of the money lent or to inquire into its Employers, Public Employer Trustees or other validity, expediency or propriety or any such Trustee of any Employer Trust; borrowing; (b) enter into a contract with an Investment Adviser (1) incur reasonable expenses as required for the providing,among otherthings,forthe establishment operation of the Retirement Trust and deduct such and operation of the Portfolios, selection of the expenses from of the Trust Property; Guaranteed Investment Contracts in which the (m) pay expenses properly allocable to the Trust Trust Property may be invested, selection of the Property incurred in connection with the Deferred other investments for the Trust Property and the Compensation Plans, Qualified Plans, or the payment of reasonable fees to the Investment Employer Trusts and deduct such expenses from Adviserand to any sub-investment adviser retained the portion of the Trust Property to whom such by the Investment Adviser; expenses are properly allocable; (c) review annually the performance of the Investment (n) pay out of the Trust Property all real and personal Adviser and approve annually the contract with property taxes, income taxes and other taxes of such Investment Adviser; any and all kinds which, in the opinion of the Trustees,are properly levied,or assessed under existing or future laws upon,or in respect of,the r . ` Trust Property and allocate any such taxes to the Section 5.2 Liability:The Trustees shall not be liable for any appropriate accounts; mistake of judgment or other action taken in good faith, (o) adopt,amend and repeal the bylaws,provided that and for any action taken or omitted in reliance in good such bylaws are at all times consistent with the faith upon the books of account or other records of the terms of this Declaration of Trust; Retirement Trust,upon the opinion of counsel,or upon (p) employ persons to make available interests in the reports made to the Retirement Trust by any of its Retirement Trust to employers eligible to maintain officers, employees or agents or by the Investment _ a Deferred Compensation Plan under Section 457 Adviser or any sub-investment adviser, accountants, or a Qualified Plan under Section 401 of the Internal appraisers or other experts or consultant selected with Revenue Code,as amended; reasonable care by the Trustees,officers or employees of the Retirement Trust. The Trustees shall also not be (q) issue the Annual Report of the Retirement Trust, liable for any loss sustained by the Trust Property by and the disclosure documents and other literature reason of any investment made in good faith and in used by the Retirement Trust; accordance with the standard of care set forth in (r) make loans, including the purchase of debt Section 5.1. obligations,provided that all such loans shall bear Section 5.3 Bond:No Trustee shall be obligated to give any interest at the current market rate; bond or other security for the performance of any of his (s) contract for, and delegate any powers granted or her duties hereunder. hereunder to, such officers, agents, employees, auditors and attorneys as the Trustees may select, ARTICLE VI.ANNUAL REPORT TO SHAREHOLDERS provided that the Trustees may not delegate the The Trustees shall annually submit to the Public Employers powers set forth in paragraphs(b),(c)and(o)of this and Public Employer Trustees a written report of the transac- Section 4.1 and may not delegate any powers if tions of the Retirement Trust, including financial statements such delegation would violate their fiduciary duties; which shall be certified by independent public accountants (t) provide for the indemnification of the Officers and chosen by the Trustees. Trustees of the Retirement Trust and purchase fiduciary insurance; ARTICLE VII.DURATION OR AMENDMENT OF (u) maintain books and records, including separate RETIREMENT TRUST accountsforeach Public Employer,Public Employer Section 7.1 Withdrawal:A Public Employer or Public Em- Trustee or Employer Trust and such additional ployer Trustee may, at any time, withdraw from this separate accounts as are required under, and Retirement Trust by delivering to the Board of Trustees consistent with, the Deferred Compensation or a written statement of withdrawal. In such statement, Qualified plan of each Public Employer;and the Public Employer or Public Employer Trustee shall (v) do all such acts, take all such proceedings, and acknowledge that the Trust Property allocable to the exercise all such rights and privileges,although not Public Employer is derived from compensation de- specifically mention herein, as the Trustees may ferred by employees of such Public Employer pursuant deem necessary or appropriate to administer the to its Deferred Compensation Plan or from contribu- Trust Property and to carry out the purposes of the tions to the accounts of Employees pursuant to a Retirement Trust. Qualified Plan,and shall designate the financial institu- Section 4.2 Distribution of Trust Property:Distributions of tion to which such property shall be transferred by the the Trust property shall be made to,or on behalf of,the Trustees of the Retirement Trust or by the Trustee of Public Employer or Public Employer Trustee,in accor- the Employer Trust. dance with the terms of the Deferred Compensation Section 7.2 Duration: The Retirement Trust shall continue Plans,Qualified Plans or Employer Trusts. The Trust- until terminated by the vote of a majority of the Public ees of the Retirement Trust shall be fully protected in Employers,each casting one vote. Upon termination, making payments in accordance with the directions of all of the Trust Property shall be paid out to the Public the Public Employers, Public Employer Trustees or Employers, Public Employer Trustees or the Trustees other Trustee of the EmployerTrusts without ascertain- of the Employer Trusts,as appropriate. ing whether such payments are in compliance with the Section 7.3 Amendment: The Retirement Trust may be provision of the Deferred Compensation or Qualified amended by the vote of a majority of the public Employ- Plans,orthe agreements creating the EmployerTrusts. ers,each casting one vote. Section 4.3 Execution of Instruments: The Trustees may Section 7.4 Procedure:A resolution to terminate or amend unanimously designate any one or more of the Trust- the Retirement Trust or to remove a Trustee shall be ees to execute any instrument or document on behalf submitted to a vote of the Public Employers if: (i) a of all,including but not limited to the signing or endorse- majority of the Trustees so direct, or; (ii) a petition ment of any check and the signing of any applications, requesting a vote signed by not less that 25 percent of insurance and other contracts,and the action of such the Public Employers, is submitted to the Trustees. designated Trustee or Trustees shall have the same force and effect as if taken by all the Trustees. ARTICLE Vlll.MISCELLANEOUS ARTICLE V.DUTY OF CARE AND LIABILITY OF Section 8.1 Governing Law:Except as otherwise required TRUSTEES by state or local law,this Declaration of Trust and the Section 5.1 Duty of Care: In exercising the powers Retirement Trust hereby created shall be construed hereinbefore granted to the Trustees, the Trustees and regulated by the laws of the District of Columbia. shall perform all acts within their authority for the Section 8.2 Counterparts: This Declaration may be ex- exclusive purpose of providing benefits for the Public ecuted by the Public Employers and Trustees in two or Employers in connection with Deferred Compensation more counterparts,each of which shall be deemed an Plans and Public Employer Trustees pursuant to Quali- original but all of which together shall constitute one fied Plans,and shall perform such acts with the care, and the same instrument. skill,prudence and diligence in the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims.