CC RESOLUTION 4010• RESOLUTION NO. 4010
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL
SEGUNDO, CALIFORNIA, AMENDING THE UNITED STATES
CONFERENCE OF MAYORS DEFERRED COMPENSATION
PROGRAM FOR PUBLIC EMPLOYEES.
WHEREAS, the City of El Segundo maintains the United States Conference of Mayors
Deferred Compensation Plan for its employees which is administered by the Public Employees
Benefit Services Corporation ( "PEBSCO ").
WHEREAS, PEBSCO has recommended certain changes and modifications to the
Section 457 Custodial Account Agreement ( "Agreement') based on recent admendments to the
Internal Revenue Code;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF EL SEGUNDO DOES
RESOLVE AS FOLLOWS:
SECTION 1. The City of El Segundo hereby adopts the revisions to the
Agreement attached as Exhibit A. Except as revised pursuant to this resolution, all provisions
of the Agreement shall remain in full force and effect.
• SECTION 2. The City Manager, or his designee, is authorized to sign any
documents required to implement the provisions of this resolution.
SECTION 3. The City Clerk shall certify to the passage and adoption of this
Resolution; shall enter the same in the book of original Resolution of said City; and shall make
a minute of the passage and adoption thereof in the records of the proceedings of the City
Council of said City, in the minutes of the meeting at which the same is passed and adopted.
PASSED, APPROVED AND ADOPTED this 6th day of May, 1997
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ATTESTED: q p
Cir}dy Mortesepf, Oity ClOk (SEAL)
APPROVED AS TO FORM:
Mark D. Hensley, City Atto ey
EXHIBIT A
1. The first sentence of Article I, Section 1.01 (n) is hereby deleted and replaced with the
following:
"SEPARATION FROM SERVICE means Separation From Service as used in IRC Section 402
(d)(4) (A) (iii), and on account of the PARTICIPANT'S death or retirement."
2. ARTICLE II, Section 2.04 is hereby deleted and replaced with the following:
"2.04. Except as provided in Section 2.05, the maximum deferred amount under the PLAN
for the PARTICIPANT'S taxable year shall not exceed the lesser of (a) $7,500 (as adjusted by
the Secretary of the Treasury) or (b) 33 1/3% of the PARTICIPANT'S Includible Compensa-
tion as provided in IRC Section 457."
3. ARTICLE II, Section 2.06 is amended by replacing "402(a)(8)" with "402(e)(3)" and
by adding, in the third line "or (k) " following "402(h) (1) (B) ".
4. Article II is hereby amended by the addition of the following Section:
"2.07 Notwithstanding the preceding provisions of Article II, a PARTICIPANT who is
. entitled to reemployment pursuant to the terms of the Uniformed Services Employment and
Reemployment Act of 1994 (USERRA) may defer an additional amount under the PLAN as
provided in that act for the years of his or her service in the uniformed services (as defined in
USERRA). Any such deferrals will not be subject to the limits set forth above in the year in
which deferred, but will be subject to the limits for the year to which such deferrals relate."
5. ARTICLE VII, Section 7.02 is hereby deleted and replaced with the following:
"7.02. The EMPLOYER shall use the PARTICIPANT'S or Beneficiary's investment specifica-
tions so as to determine the value of the deferred account maintained with respect to the
PARTICIPANT as if the deferred amounts had been invested according to such specifications;
provided, however, that only upon approval from EMPLOYER and Administrator may a
PARTICIPANT allocate an amount greater than 25% of the total deferrals of the PARTICI-
PANT to a life insurance option."
6. ARTICLE VII, Section 7.04 is hereby deleted and replaced with the following:
117.04. All assets of the PLAN, including all deferred amounts, property and rights purchased
with deferred amounts, and all income attributable to such deferred amounts, property or
rights, shall (until made available to the PARTICIPANT or Beneficiary) be held in a trust,
custodial account or annuity contract described in IRC Section 457(g) for the exclusive benefit
of the PARTICIPANTS and their beneficiaries."
7. ARTICLE VIII, Section 8.01 is hereby deleted and replaced with the following:
"8.01. Commencement of Distributions: The PARTICIPANT may elect the time at which
distributions under the PLAN are to commence by designating the month and year during
which the first distribution is to be made. The earliest distribution commencement date that
may be elected by the PARTICIPANT shall be the earlier of.
(a) thirty-one (31) days after Administrator is notified of
PARTICIPANT'S separation from service or the date the PARTICI-
PANT separates from service, whichever is later; or
(b) the date on which the PARTICIPANT attains age 70 1/2 or termi-
nates deferrals under this PLAN, whichever is later.
At least thirty (30) days prior to the date on which a PARTICIPANT is eligible for benefits to
commence under the PLAN, the EMPLOYER shall notify the ADMINISTRATOR in writing,
mailed to the ADMINISTRATOR'S Home Office, of the PARTICIPANT'S eligibility.
The PARTICIPANT shall make such election no later than the earlier of.
(a) thirty (30) days following the date Administrator is notified of
PARTICIPANT'S separation from Service or
(b) thirty (30) days following attainment of age 70.
Benefits payable to the PARTICIPANT will be the equivalent of the total benefits that would
have been created had the deferred amounts been invested as specified by the PARTICIPANT.
The date elected for commencement of distributions ( "the Elected Commencement Date ") shall
be not later than the Mandatory Commencement Date, which shall be the later of:
(a) April 1 of the calendar year following the calendar year in which
the PARTICIPANT attains age 70 1/2: or
(b) April 1 of the calendar year following the calendar year in which
the PARTICIPANT separates from service with the EMPLOYER.
The Elected Commencement Date may be postponed, once, following the PARTICIPANT's
separation from service, if the PARTICIPANT files an election designating a new date for
benefits to begin, prior to the original Elected Commencement Date. Failure to file an election
with the Administrator within the appropriate time period will result in the Administrator
beginning distributions one hundred and eighty (180) days following the date the PARTICI-
PANT separated from servia-1 or the date the Administrator is notified of PARTICIPANT'S
separation from service, whichever is later."
0 8. ARTICLE VIII, is hereby amended by the addition of the following Section:
"8.05 In service distribution - $3,500 or less: If the total amount payable to a PARTICIPANT
under the PLAN is $3,500 a less, the PARTICIPANT may elect to receive such amount
before separation of service (or the PLAN may distribute such amount without the
PARTICIPANT'S consent) if -
(a) no amount has been deferred under the PLAN with respect to
such PARTICIPANT during the two year period ending on the date of
distribution, and
(b) there has been no prior distribution under the PLAN to such
PARTICIPANT to which this Section applied."
9. ARTICLE X is hereby amended by the addition of the following Section:
"10.07 All assets of the Plan, including all deferred amounts, property and rights
purchased with deferred amounts, and all income attributable to such deferred amounts,
property or rights, other than assets held in annuity contracts, will be held in a custodial
account described in IRC Section 457(g). Such amounts will be held in a common fund with
the assets of other Section 457 Plans. Such custodial account shall be held by the custodian
thereof for the exclusive benefit of the PARTICIPANTS and Beneficiaries of this and other
Section 457 Plans and the assets may not be diverted to any other use. The Administrator shall
be the agent of the EMPLOYER for purposes of providing direction to the custodian of the
custodial account from time to time as to the investment of the funds held in the account, the
transfer of assets to or from the account and all other matters. A copy of the Section 457
Custodial Account Agreement which describes the duties of the custodian is attached hereto as
Exhibit A and is incorporated herein by reference."
0
0 CERTIFICATION
STATE OF CALIFORNIA ]
COUNTY OF LOS ANGELES ] SS
CITY OF EL SEGUNDO ]
I, Cindy Mortesen, City Clerk of the City of El Segundo, California, DO HEREBY
CERTIFY that the whole number of members of the City Council of the said City is five;
that the foregoing resolution, being RESOLUTION NO. 4010 was duly passed and
adopted by the said City Council, approved and signed by the Mayor or said City, and
attested by the City Clerk of said City, all at a regular meeting of the said Council held
on the 6th day of MAY, 1997, and the same was so passed and adopted by the following
vote:
AYES: Mayor Jacobs, Mayor ProTem Wernick, Councilwoman
Fdedkin, Councilman Weston, and Councilman Gordon
40 NOES: None
ABSENT: None
ABSTENTION: None
NOT PARTICIPATING: None
WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this 6th day of May,1997.
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