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Home My WebLink About2001-02-26 01-133 RESOLVEItem No m_rna Date: 2-26-01 Item/Subject RESOLVE, Establishing a 401(a) Money Purchase Retirement Plan for Certain City of Bangor Employees Responsible Department: Executive Commentary: The attached Resolve will formally establish the CiWs new 401(a) Money Purchase Retirement Plan with ICMA-Retirement Corporation. The ICMA-RC recommends use of this prototype resolve which outlines the relationship between J* City and ICMA-RC, designates the City's Human Resources Director as plan mordinator and also provides authority for the plan coordinator to execute all necessary agreements and documents with ICMA-RC for implementation. ICMA-RC requires approval of this Resolve by the legislative body and your approval Is recommended Manager's Comments: R r f� CM Manager Associated Information: Resolve, Adoption Agreement Budget Approval: Legal Approval: k M t+1City Solicitor x Passage _ First Reading Page _ of Referral 01-133 Assigned to Councilor PexMmn February 26, 2001 CITY OF BANGOR (TITLE.) R&l2lve Establishing a 401 Purchase Retirement Plan for Certaln City of Bangor Employees By Me Oily ab /ofMe Cfiyofeangor. RESOLVED WHEREAS, 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 Meir beneficiaries in the event of death; and WHEREAS, the Employer desires that its money purchase retirement plan be administered by the ICMA Retirement Corporation and that the funds held under such plan be invested in the ICMA Retirement Trust, a Mist established by public employers for the Collective Investment of funds held under Meir retirement and deferred compensation plans; NOW, THEREFORE, BE 3T RESOLVED, THAT the Employer hereby establishes or has established a money purchase retirement plan (the "Plan') In the form of. The ICMA Retirement Corporation Governmental Money Purchase Plan & Trust pursuant M the specific provisions of the Adoption Agreement (exerted Copy attached hereto). The Plan shall be maintained for the exclusive benefit of eligible employees and Meir beneficiaries; and BE Tr 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 of the plan are to be invested in the ICMA Retirement Trust; and 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 Tr FURTHER RESOLVED, THAT the City of Bangor Human Resources Director shall be the Coordinator for the Man; shall receive reports, notices, etc., from the ICMA Retirement Corporation or the ICMA Retirement Trust; shall cast, on behalf of the Employer, any required Ifl CITY WMCIL February 26, 2001 Nation for Passage Made and Seconded Passed p 01-133 (TITLE,) gatablfabioe a W(a) Money Purchase Retirement Plan for Certain City of Bangor 01-133 ICMA RETIREMENT CORPORATION GOVERNMENTAL MONEY PURCHASE PLAN & TRUST ADOPTION AGREEMENT Account Number l0 - "pre Employer hereby establishes a Money Purchase Plan and Trust to be known as (the "Plan") in rhe form ofthe ICMA Retirement Corporation Governmental Money Purchase Plan and TruseThe Plan shag be known as: City of Bangor Alternative Retirement Plan - II 19051 This Plan is an amendment and restatement of an existing defined contribution money purchase plan. ❑ Y ii No If yes, please specify she name of the defined contribution money purchase plan which this Plan hereby amends and asates: I. Employer Name: City of Bangor 19021 If The Eflecdve Date of the Plan shall be the first day of the PlatiYear during which the Employer adopts the Plan, unless an alternate Effective Date is hereby specified: AprL1 1. 2001 III. PlanYeer will mean: ❑ The twelve (12) consecutirpm month period which coincides .with the hmita- tion year. (See Section 5.04(1) ofthe Plan.) 18031 $ The twelve (12) consecutive month period commencing on T,lv 19nnl and each amtiretsary thereafter. Pont] IV. Normal Retirement Age (not in exceed age 65) drill be age 55 [2881 V ELIGIBILITY REQUIREMENTS: 1. The following group(s) of Employees are eligible to participate in the Plan: All Employees X All Full -Time Employees Salaried Employees Non-union Employees ManagementEmplowes Public Sakty Employees _ General Employees Other (specify below): more hours per week Mee P�asserw=.noa000 01-133 The gmup specified must correspond to a group of the same designation char is defined in the statures, ordinance, rules, regulations, personnel manuals or other material in effect in the stare or locality of the Employer. 2 The Employer hereby wtives 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 if an Employee is eligible to participate upon employment). - 13441 If this waiver or reduction is elected, it shall apply mall Employees within else Covered Employment Classification. 1 A minimum age requirement is hereby specified for eligibility m participate. The mirmiturst age requirement is N A (not to exceed age 21). Write N/A ifno mini- 1341) mum age is declared. VI. CONTRIBUTION PROVISIONS I. The Employer shall contribute as follows (choose one): ❑ Fixed Employer C mxibutiorrs With 92 = I tae Mmdamry Participant Contributions. The Employer shall contribute on behalf of each Participant * segA oflow earnings or 3 for the PlanYeaz (subject m the harmatiom ofArticle V of the Plan). Each Participant is required to contribute 6.5.%ofearningsor; 7'�' forthe PImY rmacondition ofpsiocipation in the Plan. (Write"0"ifnocontribudonisrequlred.) If Participant Contributions are required under this option, a Participant shall not have the eight to discontinue or vary the rate of such contribu- tion after becoming a Plan Participant. The Employer hereby elects to "pick up" the Mandatory/Required Participant Contribution. UX Yes ❑ No [621] The pick-up provision specifies that the contribution is created, for federal income fax purposes, as though it c made by the s mployer.The pick-up provision allows the employee to defer ters on the eirseepheyee mandatory mntr butinn.The tribal result is the same as if the cordribu- don were a reduction n that employees salary by the amount of the contribution. Picked up contributions are NOT exempt hour Social Security nr )Note to Employer: A determination letter issued to an adopting Em- ployer is not a ruling by the Internal Revenue Service floc Participant contributions that are picked up by the Employer are not includable in the Participant's gibs income for federal income tax purposes. The Employer may seek such a ruling. *Police Officers and Firefighters - 10% All other employees - 8% (Picked up contributions are excludable firm the Participant's gross income under section 414(h)(2) oftlre Internal Revenue Code of 1986 only if thry meet the requirements ofRev. Rut. 81-35,1981-1 C.B.255. Those requirements are (1) that she Employer must specify chat the contributions, although designated as employee contributions, are being paid by the Employer in heu of contributions by the employee; and (2) the employee must not have the option of receiving the contributed runts directly instead of having them paid by the Employer to the plan.] ❑ Fixed Employer Match of participant Contributions. The Employer shall contribute on behalf of each Participant _ _ _%of Earnings for dee PlanYear (subject to the limitations ofArdcle V of the Plan) for each Plant that such Participant has contributed % of Earnings or 8 Under this option, there h a single, find rate of Employer contributions, but a Participant may decline to make the required Participant contributions in any PlanYear, in which case no Employer contribution wID be made on the Participant's behalf in that PlanYear. ❑ Variable Employer Match Of Participant Contributions. The Employer shall contribute on behalf of each Participant an amount determined as follows (subject to the limitations ofArdcIe V of the Plan): ____% of the contributions made by she Participant for the Plan Year (not including Participants contributions exceeding _____Yo of PLUS __--_% of dee connibudons nude by the Participant for the PlanYear in excess of chose included in the above paragraph (but not including Participant contributions exceeding in the aggregate % of Earmnp or$ 1. Employer Contributions on bebalfof a Participant for a PlanYear shall not exceed$ or ofEarmutp, whichever is more or less. 2 Each Participant may make a voluntary (unmatched), after-tax contribution, subject to the limitations of Section 4.05 and ArticleV of the Plan. U Yes ❑ No MPTAm ,. Age 4e3vaaa 01-133 3. Employer contributions and Participant contributions shall be contributed to the Trust an accordance with the following payment schedule: (pleue circle one choice) leash 0 Bi -Weekly 1 Weekl 2 Semi -Weekly 3 Bi -Monthly 4 Monthly 5 Semi -Monthly b Bi-Quarredy ] Quarterly 8 Semi-Quarredy 9 I i -Annually 10 Annually 11 Semi -Annually mvjl ln;s,1( l Earning, as defined under Section 2.09 ofthe Plan, shall include: (a) Overtime @t yes ❑ No (b) Bonuses ❑ yes No VIIL LIMITATION ON ALLOCATIONS If the Employer 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, the Employer hereby agrees to hurt contributions w all such plans as provided herein, if necessary in order to avoid excess contributions (as described in Sections 5.02 and 5.03 oftee Plan). 1. If the Participant is covered under another qualified defined contribution plan main - named by the Employer, the provisions of Section 5.02(x) through d) of the Plan will apply unless another method has been indicated below. ❑ Other Method. (Provide the method under which the place will limit total Annunl Addidoru to the Maximum Permissible Amount, and will properly reduce any excess amounts, in a manner that precludes Em - player discretion.) 2. If the Participant is or has ever been a participant in a defined benefit plan maintained by the Employer, and if the harridan in Section 5.03 of the Plan would be exceeded, then the Participant's P jetted 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 dues not provide for such reduction, or if the limintion is still exceeded after the reduction, annual addiaoru shall be reduced m the extent necessary in the warmer described in Sections 5.02 and 5.02. The methods of avoiding the limits - don described in this paragraph will not apply if the Employer indicates another method below. 4 Mrtaa�n e.m., 413WWO 01-133 ❑ Other Method. (Note to Employer: Provide below language which will steady the 1.0 limitation of section 415(e) of the Code. Such language most predude Employer discretion. See section 1.415-I of rhe Regulations for guidance.) N/A 3. The limitation year is the following 12 -consecutive month period: Sulu 1 - June 30 IX. VESTING PROVISIONS The Employe hereby specdes the following vesting schedule, subject to (1) the minimum vesting requirements as noted and (2) the concurrence of the Plan Administrator. Years of Service Percent - Campleced Vesng_ Zero 0 % One 100 % Tura Inn % Three 100 % Four 100 % Five 100 SIX 149_% Seven 100 % Eight Inn _% Nine Inn _% Till inn % X. Loans are permitt d under the Plan, as provided in Article XIII: ❑ Y Ux No [7511 XI. The Employer hereby attests that it is a unit of state or local government or an agenry or msm muntahry of one or more units ofsa¢ or local government. XII. The Plan Administrator hereby agrees to inform the Employer of my amendments to the Plan made pursuant m Section 14.05 of the Plan or of the discontinuance or abandonment of the Plan. X111. The Employer hereby appoints the ICMA Recir m nit Corporation as the Plan Administer - tor pursuant to due tams and candidates of the ICMA RETIREMENT CORPORA- TION GOVERNMENTAL MONEY PURCHASE PLAN &TRUST. The Employer hereby agrees m the provisions ofdue Plan and Trmt. MPPgtlopion Agm. V50/2000 5 O1-133 %Iv. The Employer hereby acknowledges it understands that failure to pmpsly 611 out this Adoption Agreemem may result in disqualification of the Plan. Xv. An adopting Employer may not rely on a discrimination letter issued by the National or District Office of the Internal Revenue Service as evidence chat the Plan is qualified under Section 401 of the Inter - nil 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. In Witness Whereof, the Employs hereby causes this Agreement to be executed on this day of 200--. EMPLOYER M Tide: Attest ACCEPTED: ICMA RETIREMENT CORPORATION gii,�q Tide: Corporate Secretary Attest: MPP a�am,m,lt.,w,INaa M 01-133 votes under the ICMA Retirement Trust; may delegate any administrative duties relating W the Plan to appropriate departments; and is authorized to execute all necessary agreements with the ICMA Retirement Corporation incidental to the administration of the Plan; I, Gail E. Campbell, City Clerk of the City of Bangor, Maine, do hereby certify that the foregoing resolution proposed by the Councilor of the City of Bangor, was duly passed and adopted by the CM Coundl of the City of Bangor, Maine at a regular meeting thereof assembled this 2e day of February, 2001, by the following vote: AYES: NAYS: ABSENT: (SEAL) Clark of the City of Bangor, ME