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HomeMy WebLinkAboutReso 85-1977RESOLUTION NO. 85-77 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION ADOPTING THE CITY OF SOUTH SAN FRANCISCO, CALIFORNIA, DEFERRED COMPENSATION PLAN, AS REVISED. WHEREAS, the City of South San Francisco on May 4, 1977, pursuant to Resolution 48-77 adopted the South San Francisco, California, Deferred Compensation Plan, and WHEREAS, the City now desires to rescind said Plan as so adopted and adopt a Deferred Compensation Plan as revised, which is set forth in Exhibit A attached hereto and made a part hereof; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that 1. Rescission of Plan Adopted by Resolution 48-77. The Deferred Compensation Plan entitled, "The City of South San Francisco, California, Deferred Compensation Plan" adopted by Resolution 48-77 on May 4, 1977, is hereby rescinded. 2. Adoption of Plan. The Deferred Compensation Plan entitled "Defer- red Compensation Plan, City of South San Francisco, California," copy of which is attached hereto as Exhibit A, is hereby adopted and the City hereby consents to the Plan and shall perform its functions as therein set forth. 3. Effective Date. The Plan shall be effective on the 75th day of June , 19 77, and shall apply to compensation earned after the effective date, 4. Participation. The City consents to the participation of any employee or officer upon completion of a memorandum of understanding so providing, such participation to be in accordance with the participation agreement. Illl II IIII II III]l I 5. Effect of This Resolution. This Resolution supersedes only Para- graphs 1, 2 and 3 of Resolution 48-77 adopted May 4, 1977, and Paragraphs 4, 5, 6 and 7 as set forth in said Resolution shall remain in effect. 6. City Clerk. The City Clerk shall 6.1 Certify to the adoption of this Resolution and cause same to be entered into the records of the City Council. 6.2 Make the following endorsement on the face of the Deferred Compensation Plan adopted by Resolution No. 48-77 on May 4, 1977: This Plan was rescinded by Resolution No. 85-77 adopted the 15th day of June, 1977, which Resolution adopted a revised Deferred Compensation Plan. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 15th day of June , 19 77, by the following vote: AYES, COUNCILMEN Richard A. Battaglia, William A. Borba, Emanuele N. Damonte, Terry J. Mirri and Leo Padreddii NOES, " None ABSENT, II None -2- IIlI II IllI II ll!l'l EXHIBIT A TO RESOLUTION NO. 85-77 ADOPTED June 15, 1977 DEFERRED COMPENSATION PLAN CITY OF SOUTH SAN FRANCISCO, CALIFORNIA SECTION 1. NAME: The name of this Plan is the City of South San Francisco, California, Deferred Compensation Plan (hereinafter referred to as the Plan). SECTION 2. PURPOSE: The primary purpose of the Plan is to attract and hold personnel by permitting them to enter into agreements with. the City of South San Francisco which will provide for deferral of payment of a portion of their current compensation until death, disability, retirement, ter- mination of employment, or other event as provided herein, in accord- ance with the' provisions of Sections 53212 - 53214 of the Government Code of the State of California, and the applicable provisions of the Internal Revenue Code. SECTION 3. DEFINITIONS: For the purposes of this Plan certain words or phrases used herein will · have the following meanings: 3.1 "Employer" shall be the City of South San Francisco. 3.2 "Employee" shall mean all officers and full-time employees of the City of South San Francisco. '~ 3.3 "Participant" shall mean any employee designated as eligible by the City of South San Francisco who fulfills the'requirements for enrollment' and participation in the Plan. 3.4 "Participation Agreement" shall mean the agreement executed .and filed by an employee with the employer pursuant to Section 4, in which the employee elects to become a participant in the Plan. 3.5 "Compensation" shall mean the total of all amounts which would be paid by the employer to or for the benefit of an employee (if he were not a participant in the Plan) for actual services for the period that he is a participant. 3.6 "Employment Period" means a period from January I throUgh December 31 except that the first year of an employee hired in mid-period shall be the period beginning with the date of employment and ending on December 31. Rev. 6/1/77 3.7 "Disability" means the inability of a participant to engage in his usual occupation by reason of a medically determinable phys- ical or mental impairment as 'determined by the employer on the - basis of advice from a physician or physicians. SECTION z~. PARTICIPATION IN THE PLAN: 4.1 Each eligible employee may elect to become a participant of the Plan and defer payment of part of his compensation by executing a written Participation Agreement and filing it with the employer no later than 'the day before the beginning of any employment period; or in the case of a new employee, not later than sixty (60) days after commencement of employment. 4.2 A Participation Agreement shall be effective for the first employ- ment period following its execution and filing, except when it is executed and filed 'by a new employee pursuant to Section 4.1, in which case it shall be effective for that part of the employment period following its execution and filing. In either situation, the Participation Agreement shall continue from period to period and remain in full force and effect unless terminated as provided in Section 4.3 below. .. 4.3 A participant may terminate his participation in the Plan and thereby terminate further deferral of his compensation by filing with the ~nployer an 'executed written notice of termination at least thirty (30) days prior to effective date of termination. Once terminated, a former participant cannot rejoin the Plan during the employment period in which termination occurred; however, he may elect to become a participant in subsequent employment periods. No amounts shall be payable'to an employee upon terminating his participation in the Plan unless otherwise due pursuant to Section 7. 4.4 A participant may select pursuant to Section 6, one or more invest- ment objectives provided that the amount deferred for each objec- tive equals or exceeds the minimum of not less than Ten Dollars ~ ($i0) per pay period. SECTION 5. DEFERRAL OF' COMPENSATION: During each employment period in which the employee is a participant in the Plan, the employer shall defer payment of such part of his compensa- tion as is specified by the employee in the Participation Agreement which he has executed and filed with the employer. SECTION 6. ADMINISTRATION OF THE PLAN: 6.1 The employer shall administer or contract for administration and operation of the Plan in accordance with its terms and shall deter- mine all the questions arising out of the administration, inter- pretation and application of the Plan, which determination shall be conclusive and binding upon all persons. An advisory committee may be designated by the City Manager to aid and assist the employer in so administering and operating the Plan. Rev. 6/1/77 2~ EXHIBIT A 6.2 The employer shall establish a deferred compensation fund to which all deferred compensation shall be credited at such times as the compensation would have been payable to individual employees if. nol~ a participant of the Plan. Separate book accounts will be established for each employee participation which will show all amounts of deferred compensation,-investments made, shares acquired and earnings and gains on investments. Each book account will be valued at least quarterly. · · 6.3 On executing the Participation Agreement the employee shall desig- nate his investment objective prospectively only. The employer may invest amounts of deferred compensation in mutual ~fund shares, or interest deposits with a savings and loan company or banking institution, or investments with~a stockbroker, or life insurance and/or fixed/variable annui'ty contract with an insurance company, whichever in the employer's sole judgment will best achieve the employee's objectives. The employee's investment designations are in- tended to be an expression of mere investment preferences and do not obligate the employer, to follow the employee's designations. The employer is the sole owner and beneficiary of all funds, invest- ments, or other assets under this Plan. 6.4 The employer may, but is not required to, invest deferred compensa- tion at least monthly in the investment vehicles provided for in this Plan. All amou. nts of deferred compensation, whether or not invested by the employer shall at all times' be and remain an asset of the employer. Any and all dividends, capital gains distribu- tions, interest or other income payable on any of the employer's investments of deferred compensation also shall be an asset of the employer. The employer shall have the sole right to vote any shares of stock which it may acquire by .such investment. 6.5 Neither this Plan~ or any Participation"Agreement nor any book account shall be deemed to create a trust or custodial account on behalf of or for the benefit of any participant' of the Plan or his bene- ficiaries. No participant of the Plan or his beneficiaries shall have, by reason of the Plan, Participation Agreement, or book account, any secured or preferred interest in or to any assets of the employer. The employer shall have only a contractual obligation to pay the benefits due the participant under the Plan, solely from the defer-. red compensation .funds. SECTION 7. DISTRIBUTION OF BENEFITS' 7.1 Election - Each .participating employee must elect the payout options and the payout periods for each event stated in Sections 1.2, 7.3, 7.4, and 7.5, at the time of signing each Participation Agreement. 7.2 Retirement - In event of retirement, the full benefits credited to the participant's book account plus or minus subsequent investment gains or losses, but less any Federal or State Income Taxes required Rev. 6/1/77 EXHIBIT A ffl!Iff II1! II l~111 I ' to be withheld, shall be distributed to him in any. one or more of the following ways; 7.2[a). In a lump sum. 7:2[b)' In monthly, quarterly,'semi-annual or annual installments over a'period not to exceed ten (10) years from date dis- tribution began or over a period established by the employer not greater than the life expectancy of the participant. Life expectancy shall be determined once.by 'the employer, on the date of the initial installment distribution. Install- ment distributions will b6 made in substantiat, ly equal pay- ments,'but no payment, shall have a value of less than (the smaller of) $50 or the balance credited to the participant's book account. 7.2(c) Postpone payments under 7.2(a) and (b) above until par- ticipant reaches his 55th, 60th, 65th or 70th birthday. Participant's book account balances may continue to be invested until--in the employer's sole judgment--cash is to be withdrawn for payment of benefits. Payment of benefits will commence on the first day of the third month following termination of employ- ment. Payment of benefits under Section 7.2(c) will commence on the 1st day of the month following participant's birthday. 7.3 Disability - In event of termination of employment by reason.of disability, distribution of k)enefits will be as provided in Section 7.2. 7.4 Other Termination - In event of termination of employment by reason other than those specified in Sections 7.2 and 7.3, then the full ~ benefits cr. edited to participant's book account plus or minus subsequent investment gains or losses, but less any Federal or State Income Taxes required to be withheld, shall be distributed to him in any one or more of the following ways: 7.4(a) In a lump sum. 7.4(b) In monthly, quarterly, s'emi-annual, or annual insl~allments or substantially equal payments over a period not to exceed seven (7) years from date distribution began, but no payment shall have a value of less than (the smaller of) Fifty Dollars ($50) or the balance credited to the participant's book account. 7.4(c) Postpone payments under 7.4(a) and (b) above until partici- pant reaches his 50th, 55th, 60th or 65th birthday. The employee shall elect the method of distribution at the time of signing each Participation Agreement. The employer shall make Rev. 6/1/77 e EXHIBIT A distribution by any of the foregoing methods or combinations thereof. Participant's book account balances will continue to be invested until~-in the employer's sole judgment--cash is to ~ be withdrawn for payment of benefits, Payment of benefits under SeCtion 7.4(a) and (b) will commence on the first day of the third month, following termination of employment. Payment of benefits under Section 7.4(c) will commence on the first day of the month following the participant's birthday.. 7.5 Death - In the event of the death of any participant, either before or after termination of employment, then the full benefits credited to his book account, less any Federal or State Withholding Taxes required by law, shall be distributed to his beneficiaries in the manner designated in the participant's Participation Agreement. -The employer shall in the case of Lump Sum payment make payment ninety (90} days after notification of death of the participant, in com- pliance with any State laws governing the payment of death benefits. 7.6 Financial Catastrophe- In the event of financial catastrophe affect- ing.a participant where the withdrawal of funds would be necessary to prevent great hardship to the participant and the amount neces- sary to meet that financial catastrophe, and is not reimbursed by insurance, a participant may apply to the employer for such amount from 'the Plan prior to retirement or to termination of participant's employment with'the City. Examples of such need under the foregoing criteria may be cata- strophic illness, flood, fire, earthquake, death in the family, or disabling injury,, or examples of similar import. Withdrawals for expenditures normally budgetable, such as down payment on a home or purchase of an automobile, or college expenses, will not be per- mitted. Any amount so approved hereunder for withdrawal shall be ~ paid. to participant in a lump sum. 'The withdrawal shall be effec- tive ~at the later of the dates specified in the participant's application or the date approved by the employer. SECTION 8. EMPLOYER PARTICIPATION' Notwithstanding any other'provisions of this Plan, the employer may make additional deposits in the deferred compensation fund as additional com- pensation for the services'rendered by the employee to the, employer dur- ing an employment period, provided the employee has elected to have such additional compensation deferred, invested, and distributed, pursuant to .this Plan, prior to the employment period in which the compensation will be earned. SECTION 9. NON-ASSIGNABILITY: To the fullest extent permitted by law, the interest of a participant in the contractual obligation of the employer, established by the Plan, shall not be assignable in whole or in ..part, directly or by operation Rev. 6/1/77 EXHIBIT A of law or otherwise, in any manner and no right or interest of a par- ticipant in the employer's contractual obligation shall be liable for or subject to any obligation or liability of such participant. SECTION 10. MISCELLANEOUS: 10.1 Status of Participants - Neither the establishment of the Plan nor any modification thereof, nor the lestablishment of any book account nor the payment of any benefits, shall be construed as giving to any participant or other person any legal or equitable right against the employer except as herein provided; and, in no event, shall the terms of employment of any employee or partici- pant be modified or in any way affected hereby. 10.2 Governing Law - This Plan shall be construed, administered and enforced according to the laws of the State of California. 10.3 Designation of Beneficiaries - Each participant shall have the right, by written notice to the employer, to designate beneficiaries to receive any benefit to which said participant may be entitled in the event of his death prior to the complete distribution of bene' fits. If no such designation is in effect on a participant's death' his beneficiary shall be his estate 'or if no executor or adminis- trator is appointed within six (6) months after the participant's death, the employer shall direct said benefits to be paid to the beneficiary or beneficiaries designated in his last will, or if there be no will, then to the heirs at law of the participant. SECTION 11. AMENDMENT AND TERMINATION: 11.1 The employer may at any time and from time to time modify, amend, or terminate the Plan in whole or in part (including retroactive amendments) or cease deferring compensation pursuant to the Plan, by delivering to each par. ticipant a written copy of such modifica- tion, amendment, or termination or of a notice that it ceased deferring compensation; provided, however, the employer shall not have the right to reduce or affect the value of any participant's book account or any rights accrued under the Plan prior to such modification, amendment, termination or cessation. 11.2 In the event of the termination of the Plan by the employer under Section 11.1, the value of all participant's book account may be distributed to the participants or their beneficiaries in lump sums on the sixtieth (60th) day after termination of the Plan, or any other manner as determined by the employer. SECTION 12. EMPLOYER NOT RESPONSIBLE: The employer may, but is not required to, invest funds held pursuant to agreements between participants and the employer in accordance with e EXHIBIT A 'Rev. 6/1/77 the requests made by each participant at the time of enrollment or change in enrollment~ prospectively only. The employer shall retain- the right to approve or-disapprove such investment requests. Any action by the employer in investing funds, .or approving of any such investment of funds, shall not be considered to be either an endorse- ment or §uarantee of any investment, nor shall it be considered to attest to the financial soundness or the suitability of any invest- ment for the purpose of meetin§ future distribution of benefits as pro- vided in Section 7 or as otherwise provided in the Plan. The employer will endeavor to use reasonable care in the selection of an investment or approval of any investment request but neither the employer nor its officers and employees shall be liable to any participant .or partici- pants~ successors in interest for disappointing results or loss arising therefrom. Rev. 6/1/77 7~ EXHIBIT A [[ Il Il III [I [111 I