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HomeMy WebLinkAbout17-Finance CITY OF SAN BERNg.DINO - REQUEST FOR COUNCIL ACTION From: ANDREW GREEN, DIRECTOR OF FINANCE Subject: RETIREMENT PLAN FOR FLSA NONEXEMPT EMPLOYEES , Dept: FINANCE Date: NOVEMBER 22, 1991 Synopsis of Previous Council action: ..t Council Meeting of July 15, 1991 a motion was made and unanimously carried that a statement of intention to implement a retirement plan to include all nonexempt employees by January 1, 1992 be adopted. Recommended motion: Adopt resolutions 0/1l. ../ 'Signature Conuctpenon: Andrp-w Green. Director of Financp- Phone: Ext. 5242 Supporting data attached: YES Ward: N/A FUNDING REQUIREMENTS: Amount: Source: Finance: Council Notes: l1.nAnn=a l'tAm t\ln l'1l'/tf CITY OF SAN BERNODINO - REQUEST IQR COUNCIL ACTION STAFF REPORT , The Omnibus Reconciliation Act of 1990 mandates Social Security taxes for public sector employees who are not members of their employer's retirement system. City of San Bernardino employees affected by this law are part-time, seasonal and temporary employees who are not members of the Public Employees' Retirement System (P.E.R.S.l. To preclude paying OASDI taxes of 6.2% of covered wages for each affected employee, the City proposes establishing the PST Deferred Compensation Plan. The PST Deferred compensation Plan meets IRS requirements as a substitute retirement plan in lieu of Social Security as long as affected employees are required to allocate a total of 7.5% of their annual wages to the Plan. Each part-time, temporary and seasonal employee will be required to contribute this 7.5% of their annual wages. Upon separation from service with the city, employees will receive the total contributions credited to their account plus interest earnings and less a small amount of administrative fees. The City will save approximately $160,000 annually by providing the PST Deferred Compensation Plan in lieu of paying Social Security taxes for the affected employees. Great Western Bank is recommended to Deferred Compensation Plan because they administrator of the City'S regular Deferred They have also been the administrator of Deferred Compensation Plan since its inception administer the PST are the current Compensation Plan. the County's PST in July 1991. o o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 RESOLUTION NO. . RESOLUTION OF THE CITY OF SAN BERNARDINO ADOPTING A DEFERRED COMPENSATION PLAN FOR PARTTlME, SEASONAL AND TEMPORARY EMPLOYEES EFFECTIVE JANUARY 1, 1992. WHEREAS effective January 1, 1992, the Omnibus Budget Reconciliation Act of 1990 subjects service performed by state and local government employees who are not members of a retirement system to Social Security Taxes: WHEREAS the Treasury Department has issued Proposed regulations which permit participation in a Deferred Compensation Program (Sec. 457) as an alternative to Social Security Taxes: WHEREAS to qualify, Deferred Compensation Plans are required to allocate at least 7.5 percent (7.5%) of a worker's annual compensation into the employee's account. WHEREAS Deferred Compensation Plan has been designed to meet the requirements of an alternative plan to Social Securi ty Taxes for employees who are not members of the Public Employees Retirement System (P.E.R.S.). BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. ARTICLE I - NAME The name of this Plan is the City of San Bernardino PST Deferred Compensation Plan (hereinafter referred to as the "Plan"). SECTIONS 2. ARTICLE II - DEFINITIONS For the purpose of this Plan, certain words or phrases used herein will have the following meanings: A. "Beneficiary" means a Beneficiary of the Participant, his/her estate, or any other person whose interest in the plan is derived from the Participant. Any designation of a Beneficiary shall be by written instrument filed with the City and shall be 25 revocable unless otherwise provided in the Beneficiary designation 26 27 28 instrument. If a Participant does not file a Beneficiary o o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 designation with the City, his/her Beneficiary shall be the estate . of such Participant. B. ""Compensation" shall mean wages payable to officers and employees of the city. C. "Deferred compensation" shall mean the amount of compensation not yet earned, which the Participant and the City mutually agree shall be deferred in accordance with the provisions of the Plan. D. "Termination of Service" shall mean the severance of the Participant's employment or contract with the City prior to retirement. E. "city" shall mean the City of San Bernardino, provided that the Plan Administrator or the designee for that purpose, shall exercise on behalf of the city any discretion or other function given to the City under the Plan. F. "Plan Administrator" shall mean a Committee composed of the City Administrator, Personnel Director and Finance Director, or their designees. G. "Participant" means a Parttime, Seasonal or Temporary Employee who is eligible to defer compensation under the Plan. H. "Includible Compensation" means compensation for service performed for the City which (taking into account the provisions of Internal Revenue Code section 403 (b) and 457) is currently includible in gross income. I. "Plan Year" shall mean the period commencing January 1 and ending December 31. 2 o o 1 J. "Normal Retirement Age" shall mean, as to each 2 Participant, the age designated by the Participant within the 3 range of ages ending with 70 1/2, and beginning not earlier than 4 the earliest age at which an employee would have the right to 5 retire under the Public Employees Retirement System. For a 6 Participant who continues in the service of the city after age 70 7 1/2, Normal Retirement Age shall be the age at which the 8 Participant separates from service with the city. 9 SECTION 3. ARTICLE III - ADMINISTRATION 10 The Plan Administrator shall have full authority to adopt 11 rules and regulations for the administration of the Plan and to 12 interpret, alter, amend, or revoke any rules and regulations so 13 adopted. All forms shall be approved by the Plan Administrator. 14 SECTION 4. ARTICLE IV - ELIGIBILITY 15 All employees in full-time, part-time, temporary, contract, 16 and seasonal positions or elected officials of the City who are 17 not members of the Public Employees Retirement System shall be 18 participants in this Plan. 19 SECTION 5. ARTICLE V - ENROLLMENT 20 Each eligible officer or employee shall file a written 21 enrollment election with the City on or before the first day on 22 which the participant becomes an employee or participant under the 23 provisions of Article IV. 24 The election shall continue thereafter in full force and 25 effect unless the Participant ceases to qualify as an officer or 26 employee to be a Participant in the Plan as provided in Article IV 27 28 3 o o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 The city shall maintain or have maintained, an account ("The 24 Participant Account") for each Participant, to which shall be 25 credited an amount equal to the deferred income of the 26 Participant, less any charges for administrative costs. Each 27 28 or VIII. The election shall specify the percentage of biweekly earnings "to be contributed to the Plan by the Participant. Maximum contributions will be based on the maximum salary cap which the federal government establishes for Social Security contributions, providing such deferred amount does not exceed the lesser of $7,500 or 33 1/3% of Participant's includible compensation, as defined by applicable federal laws and regulations, in any taxable year. SECTION 6. ARTICLE VI - CHANGE IN ENROLLMENT Changes in the amount of deferment will automatically occur when a change in compensation occurs, based on the percentage of biweekly earnings. SECTION 7. ARTICLE VII - REVOCATION An enrollment election shall remain effective and no revocation is permitted for as long as Participant meets the eligibility criteria as provided in Article IV and Article XIII. SECTION 8. ARTICLE VIII - TERMINATION OF EMPLOYMENT Upon termination of a Participant's employment with the City, any agreements to defer compensation will be deemed to have been revoked. SECTION 9. ARTICLE IX - PARTICIPANT ACCOUNT 4 o o 1 Participant Account shall further be credited monthly with 2 earnings, gains, or losses applicable thereto, for the preceding 3 quarter. . 4 The city will furnish to each Participant statements of his 5 or her account at such times as determined by the Plan 6 Administrator. The account statements will disclose: 7 A. The accumulated amounts of compensation which have been 8 deferred and invested. 9 B. Any amounts credited to the Participant's Account by way 10 of interest, dividends or other proceeds flowing from his/her 11 accumulation. 12 C. The balance of such Participant's Account. 13 SECTION 10. ARTICLE X - DISTRIBUTION OF BENEFITS 14 Distribution of benefits to each Participant shall commence 15 not later than sixty (60) days after the end of the calendar year 16 following a distribution event, or 180 days after Participant's 17 termination of service, whichever is earlier, providing the 18 Participant has submitted written notification to the City 19 requesting distribution irrevocably not less than thirty (30) days 20 prior to the date on which the distribution is to be made or is to 21 commence. A Participant who fails to elect a mode of distribution 22 by such date will be deemed to have elected immediate lump sum 23 distribution of all amounts deferred. In the event a distribution 24 event occurs prior to the date the Participant attains Normal 25 Retirement Age, the Participant may irrevocably elect, prior to 26 the time any amounts become payable, to defer payment of some or 27 28 5 o o 1 all of such amounts until such time as the Participant attains , 2 Normal Retirement Age. 3 A. -In the event of retirement, the amount credited to the 4 Participant's account shall be distributed to him in anyone or 5 more of the methods as stated in Article XI. 6 B. In the event of the Participant's termination of service 7 with the City, all amounts credited to the Participant's account 8 shall be distributed to him in anyone or more of the methods as 9 stated in Article XI. 10 C. In the event of the death of the Participant, all 11 amounts in Participant's account shall be distributed to the named 12 beneficiary (ies) or estate over a period not greater than: 13 1. The life expectancy of the beneficiary, if the 14 beneficiary is the Participant's surviving spouse, or 15 2. Fifteen (15) years, if the beneficiary is not the 16 Participant's surviving spouse. 17 SECTION 11. ARTICLE XI - MODE OF DISTRIBUTION 18 All funds in a Participant's Account shall be distributed by 19 anyone of the following methods: 20 Participant accounts of less than $3,500: 21 A. In a lump sum. 22 Participant accounts of $3,500 or more: 23 A. In a lump sum. 24 B. In consecutive periodic payments monthly, quarterly, 25 semiannual or annual installments over the life expectancy of the 26 Participant, or Participant and his or her spouse. Life 27 28 6 o o 1 expectancy shall be actuarially determined by the Plan 2 Administrator based on the date the initial distribution shall 3 begin. 4 C. Notwithstanding the provisions of Article X or other 5 provisions of Article XI, Beginning with the Calendar year in 6 which the Participant attains age 70 1/2 (the 70 1/2 calendar 7 year) and for each calendar year thereafter, distribution during 8 such calendar year from the participant's account shall be an 9 amount not less than that determined pursuant to the following 10 formula: 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 B Y - X For purposes of the preceding formula, "B" is equal to the value of the Account on December 31 of the preceding calendar year; "Y" is equal to the life expectancy of the Participant (or the joint life expectancy of the Participant and his Beneficiary) based on his or her birthday (or their birthdays) in the 70 1/2 calendar year; and "X" is the number of calendar years that have ended since the Participant attained age 70 1/2 (including the 70 1/2 calendar year). For purposes of this Section C, the following rules shall apply when determining the minimum distribution. 1. The minimum distribution to be made with respect to the 70 1/2 calendar year may be delayed until no later than April 1 of the following calendar year; 2. If, pursuant to clause 1, all or part of a minimum distribution is delayed until after December 31 of the 70 1/2 year = MINIMUM DISTRIBUTION 7 - o o 1 calendar year, the value of "B" for the calendar year following 2 the 70 1/2 calendar year shall be reduced by the amount of such 3 delayed dtstribution; 4 3. The life expectancy of a Beneficiary may be used 5 only if the interest of such person is payable on account of the 6 death of the Participant (i.e., such person is a primary 7 beneficiary); 8 4. If there is more than one primary beneficiary, the 9 life expectancy of the oldest primary beneficiary shall be used; 10 5. a. Except as provided in (B) primary 11 beneficiaries (and life expectancy) shall be determined as of the 12 required Beginning Date of the Participant. 13 b. with respect to the 70 1/2 calendar year, it 14 is permissible to use the life expectancy of any beneficiary 15 designated during such year or at any time prior to the 16 Participant's Required Beginning Date, and 17 c. If a primary beneficiary is added or changed 18 after the Required Beginning Date of the Participant, the life 19 expectancy of the new primary beneficiary shall be substituted for 20 all subsequent calendar years if the life expectancy of such new 21 beneficiary (determined as of the Required Beginning Date). 22 6. If a primary beneficiary is a trust, the life 23 expectancy of the beneficiary is a trust, the life expectancy of 24 the beneficiaries of the trust shall be used, provided; 25 a. The trust is a valid trust under state law, or 26 would be if funded. 27 28 8 - o o 1 b. The trust is irrevocable. 2 c. The trust beneficiaries who are beneficiaries 3 of the Account of the Participant shall be treated as not having 4 a primary beneficiary, even if there are natural persons also 5 named as primary beneficiaries. 6 Participants who are still employed by tue City at or after 7 age 70 1/2 may delay commencement of required distributions until 8 separation from service. To the extent any of the foregoing does 9 not comply with the requirements of Internal Revenue Code Section 10 401(a) (9) and the Treasury Department Regulations thereunder, the 11 Plan shall be administered in accordance with such provisions. 12 D. In the event that an account balance may be of a small 13 amount or for other good and sufficient reason, the City may 14 elect, in its sole discretion to disapprove the method selected by 15 the Participant and to choose another method of distribution 16 permitted by this article. 17 SECTION 12. ARTICLE XII - LEAVE OF ABSENCE 18 A. Approved leave of absence with pay shall not affect 19 agreements with Participants in this plan. 20 B. Approved leave of absence without pay shall be 21 considered to be temporary revocation of the Participant's 22 agreement to participate in this Plan. Participation in the Plan 23 will be automatically reinstated as of the first day of the next 24 period subsequent to the termination of the leave of absence 25 status. 26 27 28 SECTION 13. ARTICLE XIII - TERMINATION OR AMENDMENT 9 .J - o o 1 A. The City may at any time terminate this plan. Upon such 2 termination, the Participants in the Plan will be deemed to have 3 withdrawn'from the Plan as of the date of such termination and the 4 Participant's full compensation on a nondeferred basis will be 5 thereupon restored, and the city agrees to pay such Participants 6 the amount of money determined as if the Participant had 7 terminated his employment. 8 B. The city may also amend the provisions of this Plan at 9 any time; provided, however, that no amendment shall affect the 10 rights of Participants or their Beneficiaries to the receipt of 11 payment of benefits, to the extent of any compensation deferred at 12 the time of the amendment as adjusted for investment experience 13 hereunder prior to and subsequent to the amendment. 14 SECTION 14. ARTICLE XIV - MISCELLANEOUS 15 A. The Plan shall not be construed as giving any 16 Participant any right to continue his employment with the City. 17 B. The Plan has been adopted in the State of California and 18 shall be construed and governed in all respects under and by the 19 laws of said State. 20 C. The captions used in the Plan are for the purpose of 21 convenience only and shall not limit, restrict or enlarge the 22 provisions of the Plan. 23 D. The Plan shall be binding upon and shall inure to the 24 benefit of the City, its successors and assigns, all Participants 25 and Beneficiaries and their heirs and legal representatives. 26 E. As used in the Plan, the masculine, feminine or neuter 27 28 10 ~ o - J1 - o 1 gender, and the singular or plural number, shall each be deemed to 2 include the others unless the context clearly indicates otherwise. 3 F. -Any notice or other communications required or permitted 4 under the Plan shall be in writing and, if directed to the City, 5 shall be sent to the Director of Finance at his principal office, 6 and, if directed to a Participant or to a Beneficiary at his/her 7 last known address as it appears on the City's records. 8 G. Deductions for employee contributions to retirement 9 systems shall be made without reference to amounts deferred 10 pursuant to this Plan, and shall be based upon the gross salary a 11 Participant would receive if he had not elected to defer income. 12 H. The City shall have the right to contract for 13 administration, accounting and investment services with regard to 14 operation of the Plan. 15 I. This Plan is intended to qualify as an eligible Deferred 16 Compensation Plan under Section 457 of the Internal Revenue Code, 17 and shall be interpreted and administered in a manner consistent 18 with Section 457. 19 SECTION 15. ARTICLE XV - NONASSIGNABILITY 20 It is agreed that neither the Participant nor his Beneficiary 21 nor any other designee shall have any right to commute, sell, 22 assign, transfer or otherwise convey the right to receive any 23 payments hereunder which payments and right thereto are expressly 24 declared to be nonassignable and nontransferable; and, any such 25 assignment or transfer shall not be recognized by the city, and if 26 made by the Participant in writing shall be deemed to constitute 27 28 11 .. 1 2 3 4 5 6 7 8 9 10 11 . 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o an immediate revocation by the Participant. In the event that a Participant commits or attempts to commit a prohibited act, the city is z>elieved of all liability under the Plan. Except as otherwise required by law notwithstanding this provision, any compensation deferred or benefits paid pursuant to this Plan shall not be subject to attachment, garnishment, or execution, or to transfer by operation of law in the event of bankruptcy or insolvency. SECTION 16. ARTICLE XVI - COPIES OF THIS PLAN A copy of this Plan shall be made available to each eligible employee prior to his enrollment in the Plan. SECTION 17. ARTICLE XVII - PLAN-TO-PLAN TRANSFERS A. The City will accept funds from other eligible State Deferred Compensation Plans established pursuant to Section 457 of the Internal Revenue Code to be transferred and added to the Participant's account within the Plan provided that all of the following conditions exist: 1. The funds so transferred were deferred by the Participant from Compensation while employed by a political subdivision located in the State of California and; 2. The funds so transferred are from a plan that provides that if the Participant separates from service in order to accept employment with another political subdivision located in the State of California, payout will not commence upon separation from service, regardless of any other provision of the plan, and amounts previously deferred will automatically be transferred. 12 - o o 1 3. Transfer amounts will be accepted on behalf of a 2 Participant only if the former plan provides assurance that such 3 plan is an eligible plan. 4 B. Amounts deferred by a former Participant shall be 5 transferred to another eligible plan of which the former 6 Participant has become a Participant provided that the other plan 7 is sponsored by an entity within the state of California and the 8 plan receiving such amounts provides for the acceptance of the amounts. 9 10 11 Participant separates from service with the city in order to 12 accept employment with another political subdivision located in 13 the State of California, payout will not commence upon separation 14 from service and amounts previously deferred will automatically be 15 transferred. 16 17 18 19 20 21 22 wit: 23 24 25 26 27 28 C. Regardless of any other provision of the Plan, if the I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the day of , 1991, by the following vote, to 13 - o o 1 RESOLUTION TO ADOPT A DEFERRED COMPENSATION PLAN FOR PST EMPLOYEES EFFECTIVE JANUARY 1, 1992. 2 3 Council Members: ~ NAYS ABSTAIN ABSENT 4 ESTRADA 5 REILLY 6 HERNANDEZ 7 MAUDSLEY 8 MINOR 9 POPE-LUDLAM 10 MILLER 11 12 City Clerk 13 The foregoing resolution is hereby approved this 14 day of , 1991. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 W.R. Holcomb, Mayor city of San Bernardino Approved as to form and legal content: JAMES F. PENMAN, City Attorney ,I) By: Uu.-v....-- ? (J J. I f;/IVz-- 14 o o 1 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE 3 EXECUTION OF AN AGREEMENT WITH GREAT WESTERN BANK (GWB) TO PERFORM SERVICES RELATING TO THE ADMINISTRATION OF THE PST DEFERRED 4 COMPENSATION PLAN. 5 6 7 8 9 10 , RESOLUTION NO. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Mayor is hereby authorized and directed to execute on behalf of said City an Agreement with Great Western Bank, to perform services relating to the Administration of the PST Deferred Compensation Plan, a copy of said agreement is attached hereto, marked Exhibit "A", and incorporated herein by 11 12 13 14 reference as fully as though set forth at length. SECTION 2. The authorization to execute the above referenced agreement is rescinded if the parties to the agreement fail to execute it within sixty (60) days of the passage of this 15 16 17 18 19 20 21 22 23 IIII 24 25 26 27 28 resolution. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the day of , 1991, by the following vote, to wit: I I I I I I I I I I I I I I I I I I I I I I I I o o 1 RESOLUTION WITH GWB TO PERFORM SERVICES RELATING TO THE ADMINISTRATION OF THE PST DEFERRED COMPENSATION PLAN. 2 3 Council Members: AYES NAYS ABSTAIN ABSENT 4 ESTRADA 5 REILLY 6 HERNANDEZ 7 MAUDSLEY 8 MINOR 9 POPE-LUDLAM 10 MILLER 11 12 City Clerk 13 The foregoing resolution is hereby approved this 14 day of , 1991- 15 16 17 18 19 20 W.R. Holcomb, Mayor city of San Bernardino Approved as to form and legal content: JAMES F. PENMAN, City Attorney .1 '1 21 : . 'I / : 0- T,"-.- 24 25 26 27 28 2 o o 1 AGREEMENT 2 This Agreement is effective this 1st day of January 1992, by 3 and betwe~ CITY OF SAN BERNARDINO hereinafter referred to as CITY 4 and GREAT WESTERN BANK, a Federal Savings Bank, hereinafter 5 referred to as GREAT WESTERN: 6 WITNESSETH: 7 WHEREAS, CITY pursuant to and in compliance with sections 8 3121(b) (7) (F) and 457 (b) of the Internal Revenue Code of 1986, 9 has established a Deferred Compensation Plan, hereinafter referred 10 to as PLAN; and 11 WHEREAS, CITY desires to utilize 12 performance of certain services in 13 administration of the PLAN; and 14 WHEREAS, GREAT WESTERN desires to provide such services 15 subject to the terms and conditions set forth herein; 16 NOW THEREFORE, CITY and GREAT WESTERN agree as follows: 17 1. TERM: This Agreement shall remain in effect for a 18 period of one year from the effective date hereof, and shall not 19 be terminated prior to that time except for "Cause" as that term 20 is hereinafter defined. For purposes of this Agreement, the term 21 "Cause" shall mean the failure of either party to perform any or 22 all of its obligations as defined herein. The non-defaulting party 23 shall give the defaulting party written notice which shall specify 24 the particulars of the default. If such default is not cured 25 within sixty (60) days from the end of the month in which notice 26 of default is given, the non-defaulting party may terminate the 27 28 GREAT WESTERN in the connection wi th the EXHIBIT "A" o o 1 Agreement effective thirty (30) days after the end of the sixty 2 (60) day period. 3 For purposes of this Agreement, "Contract Year" shall mean 4 the period of time between the effective date of the Contract, and 5 the same day of the month in each succeeding year; the first 6 contract Year, however, shall be extended, if necessary in order 7 to ensure that every Contract Year will end on the last day of a 8 calendar month. 9 Notwithstanding the above, this Agreement may be terminated 10 by either party, with or without "Cause" as that term may be 11 defined herein, upon the giving of ninety (90) days written notice 12 to the other party. 13 2. FUNDING: CITY may fund this Agreement by forwarding 14 participant deferrals to GREAT WESTERN at such times as it may see 15 fit. 16 3. TERMINATION: Upon the effective date of termination of 17 this Agreement, other than for Cause as defined above, the 18 following shall occur: 19 A. GREAT WESTERN shall issue reports to CITY detailing 20 the status of PLAN assets no later than twenty (20) business days 21 after the end of the month in which termination becomes effective. 22 B. CITY may request liquidation and withdrawal of PLAN 23 assets. If termination is for Cause, GREAT WESTERN shall disburse 24 those funds deposited in GREAT WESTERN, within thirty (30) days of 25 the effective date of termination. 26 If termination is due to non-renewal of this 27 28 2 - ~ o o Agreement, GREAT WESTERN shall disburse those funds deposited in 1 2 Great 3 4 5 6 7 8 9 10 11 12 13 subject penalty for early Savings, to Western not withdrawal, within ninety (90) days of the effective date of termination. 4. CITY agrees to: A. Cause appropriate deductions to be made from such payroll(s) as may be applicable. B. Send by check or wire transfer the amount of the total deductions to: Great Western Bank Deferred Compensation P.O. Box 6350 Northridge, California Department 91328 or to such other facility or in such other manner as may be mutually agreed upon between GREAT WESTERN and CITY. 14 15 GREAT WESTERN, a deferral listing with respect to participant sub- 16 accounts to include not less than the following: 17 18 19 20 21 C. Provide, in such form as agreed upon by CITY and 1. Name of Participant 2. Social Security Number of participant 3. Amount to be credited to participant's sub- account(s) GREAT WESTERN agrees to: 22 23 24 25 26 27 28 D. Establish a sub-account for each participant. E. Credi t the amounts sent by CITY to the sub- account(s) of the various participants. F. Funds invested in the option described herein as "GWBIA" will accrue interest as of the date of receipt by GREAT 3 - .lJ .& 1 o o 1 WESTERN. 2 5. RECORD KEEPING AND REPORTS: GREAT WESTERN agrees to 3 furnish CITY, not later than twenty (20) days following the end of 4 each month and each quarter a report regarding the status of the 5 PLAN containing the following information: 6 A. Each participant's name. 7 B. Each participant's Social Security Number. 8 C. Each participant's sub-account number. D. Deposits credited to each sub-account during the 9 10 period. 11 12 period. 13 E. withdrawals from each sub-account during the F. Interest/Earnings credited to each sub-account 14 during the period. 15 G. Total value of each sub-account. 16 H. Summary totals of the PLAN. t7 GREAT WESTERN agrees to provide quarterly statements to 18 participants in the PLAN, no later than twenty (20) days following 19 the end of each calendar quarter. Each statement shall identify 20 the transactions which have occurred in the participant's sub- 21 account at the beginning and the end of the preceding quarter. 22 GREAT WESTERN agrees to maintain the records necessary to 23 produce the above mentioned reports, and agrees that all records 24 shall be the property of CITY and that, in the event this 25 Agreement is terminated for any reason, GREAT WESTERN will provide 26 CITY a copy of such records, in hard copy or such other form as 27 28 .4 o o 1 mutually agreed upon between GREAT WESTERN and CITY, within ninety 2 (90) days after the effective date of termination. CITY agrees 3 that all ~elated computer tapes, discs and programs shall remain 4 the property of GREAT WESTERN. 5 GREAT WESTERN agrees that all information supplied to and all 6 work processed or completed by GREAT WESTERN shall be held to be 7 confidential and will not be disclosed to anyone other than CITY 8 except as required by law. 9 6. DISTRIBUTIONS: Upon receipt of authorized written 10 instructions from CITY, in such form and with such authorization 11 as mutually agreed upon by GREAT WESTERN and CITY, GREAT WESTERN 12 agrees to process the payment of benefits to participants and 13 beneficiaries in accordance with PLAN. Distribution requests 14 received by the last business day of the current month will be 15 processed on or before the last business day of the following 16 month. The above notwithstanding, GREAT WESTERN will cooperate 17 with CITY to not unreasonably delay distribution requested in 18 conjunction with "emergency withdrawals", as defined in the PLAN. 19 GREAT WESTERN agrees to withhold appropriate Federal and 20 State income taxes, according to instructions set forth on form W- 21 4 completed by the participant, to remit such withholdings to 22 proper taxing authori ties, and to issue net funds to 23 participant(s) or beneficiary (ies) in accordance with instructions 24 on the Distribution Request Form. GREAT WESTERN agrees to perform 25 required monthly, quarterly and annual reporting of withholdings 26 to appropriate taxing authorities. GREAT WESTERN agrees to issue 27 28 5 o o 1 appropriate annual wage and tax statements to those participants 2 and beneficiaries who received distribution(s) during the 8 preceding'year and to retain a copy of such information on file 4 for the period required by law. GREAT WESTERN agrees to provide 5 CITY a monthly report of all disbursements made during the 6 previous month. 7 7. INVESTMENT VEHICLES: 8 the herein described services 9 investment vehicles. 10 Great Western Bank Indexed Account ("GWBIA"). 11 The investment vehicle identified as GWBIA shall be savings 12 accounts with GREAT WESTERN. Each such account shall be subject 18 to rules, regulations and statutes to which GREAT WESTERN is 14 subject, as promulgated by the Office of Thrift Supervision (OTS), 15 the Federal Deposit Insurance corporation (FDIC) and other such 16 regulatory authorities. 17 GREAT WESTERN agrees to accept PLAN funds for investment in 18 GWBIA. PLAN funds will earn interest by whichever of the 19 following methods results in the highest rate payable: 20 A. The rate of interest for all funds received during 21 the term of the contract shall be the annualized yield obtained 22 from the use of the over-the-counter rate quotation for the 90 Day 28 United States Government Treasury Bill plus twenty-five (25) basis 24 points, in effect on the last business day of each calendar 25 quarter. This effective annualized yield will be guaranteed for 26 the succeeding calendar quarter regardless of any subsequent 27 28 GREAT WESTERN agrees to provide for CITY with the following 6 o o change in the 90 Day United states Treasury Bill yield. The current rate/yield is: Rate ~ % Yield 5.65 1 2 3 % (T.B.D. r 4 B. Such other yield as declared by Great Western and 5 shall not be lower than A. above. 6 Interest will accrue daily, using the 365/360 day method, 7 will be credited monthly, on the last day of the month, and will 8 be automatically reinvested to allow for monthly compounding. 9 8. ENROLLMENT SERVICES: GREAT WESTERN agrees to process, 10 or arrange to have processed, the enrollment of eligible employees 11 who participate in the PLAN. GREAT WESTERN agrees to provide 12 informational and promotional material pursuant to the PLAN for 13 distribution to employees of CITY, subject to approval of such 14 material by CITY, such approval not to be unreasonably withheld. 15 CITY agrees to allow and facilitate the periodic distribution of 16 such material to employees. 17 GREAT WESTERN agrees to conduct, or arrange to have 18 conducted, group presentations periodically for employees of CITY, 19 to explain the PLAN. CITY agrees to facilitate the scheduling of 20 such presentations and to provide facilities at which satisfactory 21 attendance can be expected. GREAT WESTERN agrees that qualified 22 personnel will be made available periodically to discuss the PLAN 23 with individual employees of CITY. 24 9. TITLE AND OWNERSHIP: CITY shall at all times be the 25 unrestricted owner of all PLAN assets, in accordance with IRC 457 26 provisions. 27 28 7 o o 1 10. PRIVITY OF CONTRACT: GREAT WESTERN shall have no 2 privity of contract with PLAN participants. GREAT WESTERN agrees 3 not to ad'cept or honor instructions which may be submitted by 4 participants without written authorization from CITY. 5 11. FEES AND EXPENSES: GREAT WESTERN shall receive from 6 CITY an administration fee equal to $.46 for each Plan "PST" 7 participant account submitted each bi-weekly pay period. Such fee 8 shall be paid to GREAT WESTERN by CITY at the time of submission 9 of participant account data. No fees will be assessed until such 10 time as the Agreement may be funded. 11 12. CIRCUMSTANCES EXCUSING PERFORMANCE: The performance 12 by the parties to this AGREEMENT is subject to force ma;eure and 13 shall be excused for the time and to the extent that it is 14 prevented by fires, power failures, strikes, acts of God, 15 restrictions imposed by government or governmental agency, or 16 delays beyond the delayed party's control. Failures of or 17 defaults of participants, employers, or investment vehicles shall 18 excuse performance by GREAT WESTERN of the duties affected thereby 19 to the extent and for the time that it is prevented from 20 performing them. 21 13. INDEMNIFICATION: Each party to this Agreement shall 22 indemnify and hold the other party, its officers, agents and 23 employees harmless from all damages, losses, costs and expenses, 24 including attorney fees, amounts paid in settlement, judgements, 25 and any other legal expense, arising from the negligence or 26 wrongful conduct, whether negligent or intentional, of the 27 28 8 J. o o 1 indemnifying party or of its officers, employees or contractors. 2 GREAT WESTERN shall not be liable for investment performance, 3 except as.expressly provided in this Agreement. 4 14. ASSIGNABILITY: No party to this Agreement shall assign 5 its rights or delegate its duties or responsibilities under this 6 Agreement, or sub-contract any of its responsibilities hereunder, 7 without the prior written approval of the other party. Such 8 approval shall not be unreasonably withheld. Unless otherwise 9 expressly stated in such approval by a party, any such assignment 10 or delegation shall not relieve the assignor or delegator of any 11 of its duties and obligations under this Agreement. 12 15. PARTIES BOUND: This Agreement and the provisions thereof 13 shall be binding upon and shall inure to the benefit of the 14 successors and assigns of the respective parties. 15 16. APPLICABLE LAW: This Agreement shall be construed in 16 accordance with the laws operating within the State of California. 17 17. UNLAWFUL PROVISIONS: In the event any provisions of 18 this Agreement shall be held illegal or invalid for any reason, 19 said illegality or invalidity shall not affect the remaining parts 20 of the Agreement, but the same shall be construed and enforced as 21 if said illegal or invalid provision had never been inserted 22 herein. Notwithstanding anything contained herein to the 23 contrary, no party to this Agreement will be required to perform 24 or render any services hereunder, the performance or rendition of 25 which would be in violation of any laws relating thereto. 26 18. MODIFICATION: This writing is intended both as the 27 28 9 ~ o o 1 final expression of the Agreement between the parties hereto with 2 respect to the included terms and as a complete and exclusive 3 statement~of the terms of the Agreement, pursuant to California 4 Code of Civil Procedures section 1856 or its successor(s). No 5 modification of this Agreement shall be effective unless and until 6 such modification is evidenced by a writing signed by both 7 parties. 8 19. NOTICES: All notices and demands to be given under this 9 Agreement by one party to another shall be given by certified or 10 United States mail, addressed to the party to be notified or upon 11 whom a demand is being made, at the respective addresses set forth 12 in this Agreement or such other place as either party may, from 13 14 15 16 17 time to time, designate in writing to the other party. Notice shall be deemed to be effective on the day the notice is received by GREAT WESTERN or the CITY. If to GREAT WESTERN: GREAT WESTERN BANK Deferred Compensation Department Northridge, California 91328 18 19 20 21 22 23 24 25 26 27 28 If to CITY: CITY OF SAN BERNARDINO 300 North "0" Street San Bernardino, California 92418 Attn: Andrew Green 10 1 .L o 0 1 AGREEMENT WITH GREAT WESTERN BANK TO ADMINISTER A DEFERRED' 2 COMPENSATION PLAN. 3 4 5 6 7 8 9 10 11 12 IN WITHBSS WHEREOP, the parties hereto have executed this Agreement on the day and year first above written. Date Signed CITY of San Bernardino By: W.R. Holcomb, Mayor Great Western By: 13 14 ATTEST: By: 15 16 Approved as to 17 form and legal content: 18 19 20 21 CITY Clerk JAMES F. PENMAN, City Attorney By: ~'7""-,,> t . h V 22 23 24 25 26 27 28 11