HomeMy WebLinkAboutRESOLUTIONS-1995-003-R-95U
3-R-95
A RESOLUTION
ICMA Money Purchase Plan and Trust
12/28/94
WHEREAS, the City of Evanston, the Employer has employees rendering
valuable services; and
WHEREAS, the establishment of a money purchase retirement plan benefits
employees by providing funds for retirement and funds for their beneficiaries in the event
of death; and
WHEREAS, the Employer desires that its money purchase retirement plan be
administrated 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.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF EVANSTON, COOK COUNTY, ILLINOIS:
SECTION 1: That the Employer hereby establishes or has established a money
purchase retirement plan (the "Plan") in the form of the ICMA Retirement Corporation
Prototype Money Purchase Plan and Trust, pursuant to the specific provisions of the
Adoption Agreement (executed copy attached hereto).
The Plan shall be maintained for the exclusive benefit of eligible employees and their
beneficiaries; and
•
1
Be It Further Resolved that the Employer hereby executes the Declaration of Trust of
the ICMA Retirement Trust, attached hereto, intending this execution to be operative with
respect to any retirement or deferred compensation plan subsequently established by the
Employer, if the assets for the plan are to be invested in the ICMA Retirement Trust.
Be it Further Resolved that the Employer hereby agrees to serve as trustee under the
Plan and to invest.funds held under the Plan in the ICMA Retirement Trust; and
Be It Further Resolved that the Finance Director shall be the coordinator for the Plan;
shall receive necessary reports, notices, etc., from the ICMA Retirement Corporation or the
ICMA Retirement Trust; shall cast, on behalf of the Employer any required votes under the
ICMA Retirement Trust; may delegate any administrative duties relating to the Plan to
appropriate departments; and
Be It Further Resolved that the Employer hereby authorizes the Finance Director to
execute all necessary agreements with the ICMA Retirement Corporation incidental to the •
administration of the Plan.
SECTION 2: That this Resolution shall be in full force and effect following its
passage and approval in the manner required by law.
Mayor
ATTEST:
City Clerk
Adopted: 1995
2
•
ICMA Retirement Corporation
Prototype Money Purchase
Plan & Trust
IC:A1,1 p
RETIREMENT
CORPORATION
001-91 F
•
ICMA RETIREMENT CORPORATION
PROTOTYPE MONEY PURCHASE PLAN
& TRUST ADOPTION AGREEMENT
#001
The Employer hereby establishes a Money Purchase Plan and Trust to be known as Section 401 (a)
Executive Money Purchase Plan
(the "Plan") in the form of the ICMA Retirement Corporation Prototype Money Purchase Plan and Trust. This Plan is .
amendment and restatement of an existing defined contribution money purchase plan. ❑ Yes
If yes, please specify the name of the defined contribution money purchase plan which this Plan hereby amends ar.0 restate:
I. Employer: City of Evanston. Illinois
•
II. Protot}pe Sponsor:
Name: ICMA Retirement Corporation
Address: 777 N. Capitol Street, N.E.
Washington, D.C. 20002-4240
Telephone Number: (202) 962-4600
III. The Effective Date of the Plan shall be the first day of the Plan Year during which the Employer adopts th;
Plan, unless an alternate Effective Date is hereby specified: January 1, 1995
Month/Day
IV. Plan Year will mean:
❑ The twelve (12) consecutive month period that coincides with the limitation year. (See Section 5.0-56)
the Plan.)
® The twelve (12) consecutive month period commencing on Jan. 1 and each arnivers::-.
thereof. Month/Day
0
V. Normal Retirement ,age shall be age 65 (not to exceed age 65).
1 001-y:=
• VI. ELIGIBILITY REQUIREMENTS:
1. The following groups of Employees are eligible to participate in the Plan:
❑ All Employees
❑ All Full -Time Employees
❑ Salaried Employees
❑ Non -Union Employees
Cl Management Employees
❑ Public Safety Employees
O General Employees
Other (specify below)
C -y Manager
2. The Employer hereby waives or reduces the requirement of a twelve (12) month Period of Service for
participation. The required Period of Service shall be N/A (Write N/A ifanEmployee
is eligible to participate upon employment.)
If this waiver or reduction is elected, it shall apply to all Employees within the Covered Emplo; mcm
Classification.
3. A minimum age requirement is hereby specified for eligibility to participate. The minimum age
requirementis N/A (nottoexceedage2l). (WriteN/A if no minimum age is declared.)
• VII. CONTRIBUTION PROVISIONS
The Employer shall contribute as follows (choose one):
® Fixed Employer Contributions With or Without Mandatory Participant Contributions.
The Employer shall contribute on behalf of each. Participant �� of
Earnings or S 7,500 for the Plan Year (subject to the limitations of Article VI
of the Plan). Each Participant is required to contribute % of Earnings or
S 0 for the Plan Year as a condition of participation in the Plan. (Write "0"
_ if no contribution is required.) If Participant contributions are required under this option, a
Participant shall not have the right to discontinue or vary the rate of such contributions after
becoming a Plan Participant.
The Employer hereby elects to "pick up" the Nlandatory/Required Participant Contribution.
❑ Yes ❑ No
[Note to Employer: Neither an opinion letter issued by the Internal Revenue Service with respect
to the Prototype Plan, nor a determination letter issued to an adopting Employer is a ruling by the
Internal Revenue Service that Participant contributions thatare picked up by the Employer are not
includable in the Participant's gross income for federal income tax purposes. The Employer may
seek such a ruling.
Picked up contributions are excludable from the Participant's gross income under Secuon
41.1(h)(2) of the Internal Revenue Code of 1986 if they meet the requirements of Rev. Rul. 81-
35, 1981-1 C.B. 255. Those requirements are (1) that the Employer must specify that the
2 001-91F
contributions, although designated as Employee contributions, are being paid by the Employer
in lieu of contributions by the Employee; and (2) the Employee must not have the oe
receiving the contributed amounts directly instead of having them paid by the Employe h:
Plan.]
❑ Fixed Employer Match of Participant Contributions.
The Employer shall contribute on behalf of each Participant % of
Earnings for the Plan Year (subject to the limitations of Articles V and VI of the Plan) for each
Plan Year that such Participant has contributed % of Earnings or
S . Under this option, there is a single, fixed rate of Employer contribu-
tions, but a Participant may decline to make the required Participant contributions in any Plar.
Year, in which case no Employer contribution will be made on the Participant's behalf in tha.
Plan Year.
❑ Variable Employer Match of Participant Contributions.
The Employer shall contribute on behalf of each Participant an amount determined as follo%k
(subject to the limitations of Articles V and VI of the Plan):
❑ % of the contributions made by the Participant for the Plan Yc -
(not including Participant contributions exceeding �,c of Earr-
ings or S l;
❑ PLUS % of the contributions made by the Participant for the
Plan Year in excess of those included in the above paragraph (but not in
Participant contributions exceeding in the aggregate c:
Earnings or S ).
❑ Employer contributions on behalf of a Participant for a Plan Year shall not exce.eZ
S or % of Earnings, whichever is
❑ more or ❑ less.
2. Each Participant may make a voluntary (unmatched), after-tax contribution, subject to the limitations e_
Section 4.04 and Articles V and VI of the Plan.
Q Yes Cl No
3. Employer contributions and Participant contributions shall be contributed to the Trust in accordance wi:
the following payment schedule:
Bi—Weekly
VIII. EARNINGS
Earnings, as defined under Section 2.09 of the Plan, shall include:
1. Overtime ❑ Yes Q No 40.
?. Bonuses ❑ Yes U No
3 001-91=
• IV LIMITATION ON ALLOCATIONS
If the Employer (i) maintains or ever maintained another qualified plan in which any Participant in this Plan is (or
was) a participant or could possibly become a participant, and/or (ii) maintains a welfare benefit fund (as defined
in Section 419(e) of the Code) or an individual medical account (as defined in Section 415(1)(2) of the Code, under
which amounts are treated as Annual Additions with respect to any Participant in this Plan), the Employer hereby
agrees to limit contributions to all such plans as provided herein, if necessary, in order to avoid excess contributions
(as described in Sections 6.03 and 6.04 of the Plan).
If the Participant is covered under another qualified defined contribution plan maintained by the Employer,
other than a Regional Prototype Plan, the provisions of Section 6.02(a) through (0 of the Plan will apply
as if the other plan were a Master or Prototype Plan, unless another method has been indicated below.
❑ Other Method. (Provide the method under which the plans will limit total Annual Additions to
the Maximum Permissible Amount, and will properly reduce any excess amounts, in a manner
that precludes Employer discretion.)
2. If the Participant is or has ever been a participant in a defined benefit plan maintained by the Employer,
and if the limitation in Section 6.04 of the Plan would be exceeded, then the Participant's Projected Annual
Benefit under the defined benefit plan shall be reduced in accordance with the terms thereof to the extent
necessary to satisfy such limitation. If such plan does not provide for such reduction, or if the limitation
is still exceeded after the reduction, annual additions shall be reduced to the extent necessary in the manner
described in Sections 6.01 through 6.03. The methods of avoiding the limitation described in this paragraph
will not apply if the Employer indicates another method below.
❑ Other Method. (Note to Employer: Provide below language which will satisfy the 1.0 limitation
of section 415(e) of the Code. Such language must preclude Employer discretion. See section
1.415-1 of the Regulations for guidance.)
The limitation year is the following twelve (12) consecutive month period:
Momh/Day
00 1 -91 F
Y. VESTING PROVISIONS
The Employer hereby specifies the following vesting schedule, subject to (1) the minimum vesting requiren0as
noted and (2) the concurrence of the
Plan Administrator.
Years of
Specified
Minimum
Service
Percent
Vesting
Completed
Vestine
Reauirements"
Zero
100 %
No minimum
One
%
No minimum
Two
%
No minimum
Three
%
Not less than 20%
Four
%
Not less than 40%
Five
%
Not less than 60%
Six
%
Not less than 80%
Seven or more
100 %
Must equal 100%
(*"These minimum vesting requirements conform to the Code's three- to seven-year vesting schedule. If the employee
becomes 100% vested by the completion of five years of service, there is no minimum for years three and four.)
YI. INVESTMENT OPTION
❑ A Participant may direct his/her investment only to or into an investment option that provides a guarantee
of principal. is
❑ A Participant may direct his/her investment of not more than % in an investment
option which does not provide any guarantee of principal.
❑ A Participant may direct his/her investment, without restriction, among various investment options
available under the Trust.
❑ Specify any other investment restrictions:
XII. BENEFITS UPON SEPARATION
1. Upon separation from service for reason other than death, disability, or attainment of Normal Retirement
Age, the Participant may elect to commence receiving benefits from the following accounts, without regard
to age:
a) Employer Contribution Account (Nonforfeitable Interest) ❑ Yes ❑ No
b) Participant Contribution Account (if applicable) ❑Yes Cl No
c) Participant Portable Benefits Account ❑ Yes ❑ No .
5 001-91 F
• 2. If "no" to any of the above, the earliest age at which the Employer will allow a distribution from the
Employer Contribution Account, the Participant Portable Benefits Account, and/or the Participant
Contribution Account, if applicable, shall be age (not later than Normal Retire-
ment Age).
3. Notwithstanding Subsection (2) above, a distribution shall be made pursuant to Section 10.04 of the Plan,
De Minimis Accounts. Further, the Participant shall be entitled to request that his/her entire Nonforfeitable
Interest in his/her Account be transferred to another plan, pursuant to Section 10.03 of the Plan.
XIII. Loans are permitted under the Plan, as provided in Article XIV. ® Yes ❑ No
XIV. The Employer hereby attests that it is a unit of state or local government or an agency or instrumentality
of one or more units of state or local government.
X V. The Prototype Sponsor hereby agrees to inform the Employer of any amendments to the Plan made pursuant
to Section 15.05 of the Plan or of the discontinuance or abandonment of the Plan.
XVI. The Employer hereby appoints the Prototype Sponsor as the Plan Administrator pursuant to the terms and
conditions of the ICNIA RETIREMENT CORPORATION PROTOTYPE MONEY PURCHASE PLAN &
TRUST.
The Employer hereby agrees to the provisions of the Plan & Trust.
X VII. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption Agreement
may result in disqualification of the Plan.
• XVIII. An adopting Employer may not rely on a notification letter issued by the National or District Office of the
Internal Revenue Service as evidence that the Plan is qualified under section 401 of the Internal Revenue
Code. In order to obtain reliance with respect to plan qualification, the Employer must apply to the
appropriate key district office for a determination letter.
This Adoption Agreement may be used only in conjunction with basic Plan document number 001.
In Witness Whereof, the Employer hereby causes this Agreement to be executed on this day of
,19
ENIPLOYER Accepted: ICMA RETIREMENT CORPORATION
B\: By:
Title: Title:
Attest: Attest:
IC MA RETIREMENT CORPORA -:ON. CORPORATE HEADQUARTERS, 777 NORTH CAPITOL STREET. NE. WASHINGTON, DC 20002-4240
6 001-91F
LJ