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HomeMy WebLinkAboutResolution - 80-33 - Approving Participation in Hennepin County Cooperative Purchasing Program Deferred Compensation Plan - 02/19/1980 A- CITY OF EDEN PRAIRIE Hennepin County, Minnesota RESOLUTION NO. R 8 0- 33 RESOLUTION APPROVING THE CITY OF EDEN PRAIRIE PARTICIPATION IN THE HENNEPIN COUNTY COOPERATIVE PURCHASING PROGRAM DEFERRED COMPENSATION PLAN. WHEREAS, the City Council of the City of Eden Prairie, Minnesota, has agreed to enter into an Agreement with the Hennepin County Cooperative Purchasing Program Deferred Compensation Plan, NOW, THEREFORE, it is hereby resolved by the City Council of the City of Eden Prairie, to adopt the Hennepin County Cooperative Purchasing Program Master Deferred Compensation Plan for the benefit of its eligible employees, officers and independently contracted personnel , and hereby agrees to faithfully carry out its responsibilities and obligations under the Plan. Passed and adopted at a regular meeting of the Council held on the 19th day of February, 1980. CITY CLERK ` MAYOR JO D. FRANE WOLFGANG PENZEL 4 HENNEPIN COUNTY COOPERATIVE PURCHASING PROGRAM DEFERRED COMPENSATION PLAN I. INTRODUCTION The Hennepin County Cooperative Purchasing Program hereby establishes the Hennepin County Cooperative Purchasing Program Master Deferred Compensation Plan, hereinafter referred to as the "Plan", the purpose of which is to provide retirement benefits to eligible officers, employees, and contractors as well as certain pre-retirement and death benefits to them and their beneficiaries. Any city which is a member of or affiliated with the Hennepin County Cooperative Purchasing Program may adopt this Plan for the benefit of its officers, employees, and contractors by executing a Joinder Agreement whereby they agree to adopt the provisions of this Plan as their own. Any city thus adopting the Plan shall be individually responsible to its Participants for carrying out and fulfilling its obligations under the Plan. The term "Employer", wherever # shall appear in this Plan, shall include within its meaning any city within the Hennepin County Cooperative Purchasing Program thus adopting the Plan. As to any Participant, the term "Employer" shall mean that person or entity with whom or which such Participant has executed a Participation Agreement in accordance with Section 4.02(a). II. DEFINITIONS 2.01 Compensation: The total amount of remuneration for employment or contracted services •received by the Participant from the Employer. 2.02 Deferred Compensation: The amount ,of Compensation not yet earned - which the Participant and the Employer shall mutually agree will be deferred. 2.03 Retirement: Severance of the Participant's contract or employ- ment with the Employer on or after the Participant's 65th birth - day by reason other than death. 2.04 Beneficiary: Beneficiary or beneficiaries designated by the Par- ticipant in his agreement with the Employer to defer Compensation.• If more than one designated beneficiary survives the Participant, payments shall be made equally, unless otherwise provided in the beneficiary designation. Nothing herein shall prevent the Parti- cipant from designating primary and secondary beneficiaries. 2.05 Termination of Services: The severance of the Participant's contract or employment withe the Employer prior to his retirement by reason other than death. 2.06 Participant: Any individual who fulfills the eligibility and enrollment requirements of Article IV. III. ADMINISTRATION This Plan shall be administered by the committee of not less than three persons appointed by the Employer, hereinafter referred to as the "Committee". The Committee shall represeril--L3xo -nbp10yCi In all matter= concerning the administration of this Plan., The Employer may remove a Committee member for any reason by giving him ten (10) days written notice, and fill any vacancies thus created. -1- The Committee shall have full power and authority to adopt rules and regulations for the administration of the Plan, provided they are not inconsistent with the provisions of this Plan, and to interpret, alter, amend; or revoke any rules and regulations to be adopted. IV. PARTICIPATION IN THE PLAN 4.01 Eligibility: Any officer, employee, or independent contractor of the Employer who is not a member of the Committee, and whom the Committee approves for participation. 4.02 Enrollment in the Plan: (a) An eligible person, with respect to participation commencing in the initial year of the Plan, may become a Participant within a reasonable time after the Plan becomes effective by executing a Participation Agreement with the Employer whereunder he agrees to defer all or a portion of Compen- sation not yet earned at the time of the Agreement, assents to the provisions of this Plan, and designates one or more beneficiaries. Thereafter, by executing a Participation Agreement, any eligible person may agree to defer compen- sation not yet earned, but such Agreement must be entered into prior to the beginning of the calendar year in which it is to become effective. (b) At the time of entering into an agreement hereunder to defer -compensation or at the time of re-entry following a with-drawal a Participant must agree to defer a minimum amount of $300.00 per year. y (c) A Participant who defers compensation may not modify such _ agreement to change the amount deferred except with respect to compensation earned in the subsequent calendar year or. except as provided in Article VIII hereof with respect to WITHDRAWALS. (d) A Participant may at any time revoke his agreement to defer compensation by notifying the Employer in writing 15 days prior to the effective day of the termination and the Parti- cipant's full compensation will be thereupon restored. However, amounts previously deferred shall only be paid in accordance with this Plan. (e) A Participant who has withdrawn as set forth in Article VIII or revoked as set forth in (d) above may again become a Participant by executing a new agreement to defer compen- sation not yet earned, but such agreement must be made prior to the beginning of the calendar year in which it is to become effective. V. RELATIONSHIP,TO OTHER EMPLOYER PLANS The amount of deferred salary will not be considered as current salary. { However, such amounts will be included in determining benefits or rights under the Employer Group Insurance and Retirement Plans. Payment under the Deferred Compensation Plan will supplement Retirement and Death benefits under the Group Insurance and Retirement Plans of the Employer. I s �!r �! _ -2- VI. BENEFITS OF RETIREMENT 6.01 If-the Participant continues in the service of the Employer until his Retirement the Committee shall pay to such Participant a fluctuating monthly income for 120 months certain and for life equal to the amount which shall be payable under an annual premium deferred annuity contract purchased from the AEtna Variable Annuity Life Insurance Company with the Participant as annuitant thereunder, with an annual premium equal to his Deferred Compensation, and with a 100% variable pay-out option (hereinafter referred to as the "Contract") . In lieu of the above described Retirement benefits the Committee may, in its sole discretion elect to pay an actuarial equivalent series of payments on any one of the following options: (a) a lump-sum; or a lump-sum in combination with (b) a refund basis; (c) pay- ments for 180 consecutive months and life thereafter; or (d) payments -for his lifetime and thereafter during any remaining lifetime of a designated second person and in lieu of fluctuating payments, payments of a fixed amount or a combina- tion of fixed and fluctuating payments; provided, however, that the 'Committee must make such an election at least thirty (30) days prior to the Retirement of such Participant. 6.02 Should the Participant die at any time -after Retirement, whether prior to or after he has begun to receive the Retirement payment(s) provided by Section 6.01, his designated Beneficiary or Beneficiaries shall be entitled to receive the balance remaining of such payment(s). If no Beneficiary is designated • as provided in Section 2.04 of this Plan, or if the designated Beneficiary does not survive the period during which such ,, payment(s) ,ar6 to be made, then the executors-or administrators of the Participant shall receive a lump-sum amount equal to the current value of the Contract purchased on the life of such Participant. VII. BENEFITS ON TERMINATION OF SERVICES OR DEATH PRIOR TO RETIREMENT 7.01 In the event the Participant terminates his services for reason other than Retirement, the Employer shall, beginning on the fifteenth (15) day of the month next following the date of such Termination, pay to the Participant over a period of sixty (60) consecutive months an amount equal to what would be available under the Contract described in Section 6.01; provided, however, that"the Committee may, in its sole discretion, defer the beginning of such payments to a later date not to extend beyond the Participant's 65th birthday, and/or make payment in a lip sum or in installments over some period other than sixty (60) months except that once any installment payments have begun the Committee or Employer may not thereafter alter the method of settlement. 7.02 In the event the Participant dies before his Retirement or prior to receiving the benefit provided for in Section 7.01, his Bene- ficiary or Beneficiaries shall be entitled to receive a death benefit equal to that which shall be. available under the Contract described in Section 6.01. If no Beneficiary is designated as provided in Section 2.04, or if the designated Beneficiary does not survive the Participant for a period of 30 days, then the executors or administrators of the Participant shall receive the benefit in-a lump sum. -3- VIII. WITHDRAWALS For serious financial reasons, a Participant may apply to the Committee ..for withdrawal from the Plan prior to retirement or other termination of the Participant's service with the Organization. If such applica- tion for withdrawal is approved by the Committee, the withdrawal will be effective at the later of the dates specified in the Participant's application for the date of approval by the Committee. Upon approval by the Committee, it shall treat such Participant as if he had termi- nated his services on the date of such withdrawal, and pay such benefit _ or benefits as provided for in Section 7.01 up to an amount necessary to meet the financial emergency contained in.-such Participant's appli- cation for withdrawal. Serious financial reasons shall include bankruptcy or impending bank- ruptcy, unexpected and unreimbursed major expenses resulting from illness to person or accident to person or •property or other types of unexpected and unreimbursea expenses of a major or emergency nature where withdrawal of the funds would be necessary to prevent great hardship to the Participant. Withdrawals for foreseeable expenditures normally budgetable such as down payments on a home, vacation-expenses, purchase of an automobile, or college expenses will not be permitted. IX. LEAVE OF ABSENCE 9.01 If a Participant is on an approved leave of absence from the employer with compensation, or on an approved leave of absence • without compensation for a period of not more than six months, his participation in this Plan will continue. 9.02 If a .Participant is on an approved leave of absence without com- pensation and such leave of absence continues for more than six months, said Participant will be deemed to have withdrawn from the Plan as of the end of such six month period. The Committee shall treat such Participant as if he had terminated his services and pay such benefit or benefits as .provided for in Section 7.01. X. AMENDMENT OR TERMINATION OF PLAN 10.01 The Employer may at any time terminate this Plan. Upon such termination, the Participants in the Plan will be deemed to have withdrawn from the Plan as of the date of such termination, the Participant's full compensation on a non-deferred basis will be thereupon restored and the Committee shall treat such Partici- pants as if they had Terminated their Services on the date of the termination and such benefit or benefits as provided in Section 7.01. 10.02 The Employer may also amend the provisions of this Plan at any time; provided, however, that no amendment shall affect the rights of Participants or their Beneficiaries to the receipt of payments of benefits, to the extent of any Compensation • deferred prior to the time of the amendment, as adjusted for investment experience under the Contract described .in Section 6.01 prior to and subsequent to the amendment. XI. TRANSFERS IN LIEU OF BENEFITS Upon the occurrence- of any event requiring the payment of benefits under this Plan, the Committee may, in its sole discretion, elect to honor a request from the Participant to substitute the transfer and assignment of any Contracts which the Employer has acquired in connection with such Participant's participation in the Plan, to the said Participant. By such action, all obligations of the Employer to pay benefits under this Plan to such Participant will cease, terminate and expire. -4- XII. NON-ASSIGNABILITY CLAUSE It is agreed that neither the Participant, nor his Beneficiary nor any other designee, shall have .any right to commute, sell, assign, transfer or otherwise convey the right to receive any payments hereunder which payments and rights thereto are expressly declared to be non-assignable and non-transferable; and in the event of any attempted assignment or transfer, the Employer shall have no further liability hereunder; nor shall any unpaid benefits be subject to attachment, garnishment or execution, or be transferable by operation of law in event of bank- ruptcy, insolvency, except to the extent otherwise required by law. XIII. NON-FORFEITABILITY OF BENEFITS The Participant shall have no direct rights in or to any Contracts purchased by the Employer under this Plan. However, the Participant shall have at all times a fully vested right to receive the payments provided for under this Plan, subject only to the conditions set forth in this Plan, which right shall not be forfeited by any action_ of the Participant. XIV. APPLICABLE LAW This Plan shall be construed under the laws of the State of IN WITNESS WHEREOF, the Hennepin County Cooperative Purchasing Program has caused this Plan to be signed by its ll du authorized Of icer, and attested b¢its Secretary on the day of ATTEST: HENNEPIN COUNTY COOPERATIVE PURCHASING PROGRAM B - 4)Ze� / CI Title: -5- CITY OF EDEN PRAIRIE DEFERRED COMPENSATION PLAN AMENDMENTS MANDATED BY THE REVENUE ACT OF 1978 Added: 2.07 Includible Compensation: The remuneration for service performed for the Employer which is currently includible in gross income. Amended: 2.02 Deferred Compensation: The amount of Compensation not yet earned which the Participant and the Employer shall mutually agree, as designated in the Participation Agreement which is made a part hereof, shall be deferred in accordance with the provisions of this Plan, subject to the following limitations: (i) The maximum that may be deferred under this Plan for the taxable year (except as provided in paragraph 2.03(b) is the lesser of: • (a) $7,500, or (b) 33 1/3% of the Participant's includible compensation. (2) For any one or more of the Participant's last three taxable years ending prior to his Retirement, as defined in paragraph 3(c), the limitation set forth in paragraph 2.02(a) shall be the lesser of: (a) $15,000, or (b) The sum of the limitation set forth in paragraph 2.02(a) and so much of that limitation which has been underutilized since January 1, 1979. Amended: 4.02 Enrollment in the Plan: (a) An eligible person, with respect to participation commencing in the initial year of the Plan, may become a Participant prior to or within a reasonable time after the Plan becomes effective by agreeing to defer compensation not yet earned. Thereafter, a new Participant may agree to defer compensation not yet earned, but such agreement must be made prior to the beginning of the calendar month in which it is to become effective. (b) At the time of entering into an agreement hereunder to defer compensation or at the time of re-entry following a withdrawal, a Participant must agree to defer a minimum amount of $300.00 per year. *(c) A Participant who defers compensation may not modify such agreement to change the amount deferred except with respect to compensation to be earned in the subsequent calendar month or except as provided in Article VIII, hereof with respect to withdrawals. (d) A Participant may at any' time revoke his agreement to defer compensation by notifying the Committee in writing 15 days prior to the effective date of the termination; however, his accrued benefits shall be paid only in accordance with this plan. *(e) A Particiapt who has withdrawn from the Plan, as set forth in Article VIII, or has revoked his agreemtn to defer, as set forth in subsection (d), above, may again become a Participant in the Plan by executing a new agreement to defer compensation not yet earned. However, such agreement must be made prior to the beginning of the calendar month in which it is to become effective. JOINDER AGREEMENT TO THE HENNEPIN COUNTY COOPERATIVE PURCHASING PROGRAM DEFERRED COMPENSATION PLAN THIS AGREEMENT is made this 19TH day of FEBRUARY l9 80 by and between (City of) Eden Prairie, Minnesota - i hereinafter referred to as the "Employer", and the Hennepin County Cooperative Purchasing Program. 1. The Employer hereby adopts the Hennepin County Cooperative Purchasing Program Master Deferred Compensation Plan for the benefit of its eligible Employees, officers and independently contracted personnel. 2. All of the terms, provisions and conditions of the Hennepin County Cooperative Purchasing Program Master Deferred Compensation Plan are hereby incorporated into this Joinder Agreement and together they now constitute the Employer's "Plan". 3. In return for the Hennepin County Cooperative Purchasing Program's permission to establish this Plan, the Employer hereby agrees to faithfully carry out its responsibilities and obligations under the Plan. HENNEPIN COUNTY COOPERATIVE PURCHASING PROGRAM By Title: v i City of Eden Prairie, Minnesota (Employer) B•v: Wol ng enzel Tit e: CZty MaVo Charles A. Schons CL-U -- -- BY: Agent of Record Patrick C. Mackey CLU oger K. Ulstad Title: r;ti Manaaer General Agent