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CITY OF SAN BERNg.DINO - REQUEST FOR COUNCIL ACTION
From: ANDREW GREEN, DIRECTOR OF FINANCE
Subject: RETIREMENT PLAN FOR FLSA NONEXEMPT
EMPLOYEES
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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
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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.
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RESOLUTION NO.
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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
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instrument.
If a Participant does not
file a Beneficiary
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designation with the City, his/her Beneficiary shall be the estate
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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.
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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
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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
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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
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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
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1 all of such amounts until such time as the Participant attains
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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
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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:
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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
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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.
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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.
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SECTION 13.
ARTICLE XIII - TERMINATION OR AMENDMENT
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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
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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
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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.
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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.
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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.
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22 wit:
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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
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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
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City Clerk
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The foregoing resolution is hereby approved this
14 day of , 1991.
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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--
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1
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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.
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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
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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
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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
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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
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City Clerk
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The foregoing resolution is hereby approved this
14 day of , 1991-
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W.R. Holcomb, Mayor
city of San Bernardino
Approved as to
form and legal content:
JAMES F. PENMAN,
City Attorney
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: 0- T,"-.-
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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
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GREAT WESTERN in the
connection wi th the
EXHIBIT "A"
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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
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Agreement, GREAT WESTERN shall disburse those funds deposited in
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2 Great
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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.
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GREAT WESTERN, a deferral listing with respect to participant sub-
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accounts to include not less than the following:
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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:
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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
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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
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10 period.
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12 period.
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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
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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
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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
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GREAT WESTERN agrees to provide
for CITY with the following
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change in the 90 Day United states Treasury Bill yield.
The current rate/yield is: Rate ~ % Yield 5.65
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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.
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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
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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
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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
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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
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If to CITY:
CITY OF SAN BERNARDINO
300 North "0" Street
San Bernardino, California 92418
Attn: Andrew Green
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AGREEMENT WITH GREAT WESTERN BANK TO ADMINISTER A DEFERRED'
2 COMPENSATION PLAN.
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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:
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14 ATTEST:
By:
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Approved as to
17 form and legal content:
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CITY Clerk
JAMES F. PENMAN,
City Attorney
By: ~'7""-,,> t . h
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