CC RESOLUTION 4104RESOLUTION NO. 4104
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF EL SEGUNDO RELATING TO THE
AMENDMENT OF ITS DEFERRED COMPENSATION
PLANS WITH THE PUBLIC EMPLOYEES BENEFIT
SERVICES - CORPORATION AND THE
INTERNATIONAL CITY /COUNTY MANAGEMENT
ASSOCIATION RETIREMENT CORPORATION
WHEREAS, the City of El Segundo (the "City ") has employees rendering
valuable services; and
WHEREAS, the City has established deferred compensation plans for such
employees that serve the interest of the City by enabling it to provide reasonable
retirement security for its employees, by providing increased flexibility in its personnel
management system, and by assisting in the attraction and retention of competent
personnel; and
WHEREAS, the City has determined that the continuance of the deferred
compensation plan will serve these objectives; and
WHEREAS, amendments to the. Internal Revenue Code ( "IRC") have been
enacted that require changes to the structure of and allow enhancements of the benefits
of the deferred compensation plans, including the addition of IRC Section 457(g); and
WHEREAS, a major purpose of IRC Section 457(8) is to protect the deferred
compensation assets of government employees from the creditors of their governmental
employers; and
WHEREAS, a deferred compensation plan will become an "ineligible plan" if it
does not comply with the IRC Section 457(g) requirement by January 1,1999; and
WHEREAS, the effect of becoming an "ineligible plan' is to subject covered
employees to liability for income taxes on vested amounts deferred under the plan and
may cause the city to be liable for the amount of income tax which should have been
withheld on deferred amounts; and
WHEREAS, it has come to the attention of the City that its deferred
compensation plans administered, respectively, by the Public Employees Benefit
Services Corporation ( "PEBSCO ") and the International City /County Management
Association Retirement Corporation ( "ICMARC") may not be in compliance with IRC
Section 457(g);
RESOLUTION NO. 4104
AMENDING DEFERRED COMPENSATION
PLANS WITH PERS AND ICCMARC
PAGE NO.1
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL SEGUNDO
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The above recitals are true and correct.
SECTION 2. The City Council (the "City Council") of the City hereby approves
the amendment of the City's Governmental Section 457 deferred compensation plans
administered respectively by the PEBSCO and ICMARC, in substantially the form of the
applicable model amendment contained in the Model Amendments to Reflect
Mandatory § 457(g) Requirements For Governmental § 457(b) Plans as set forth in
Internal Revenue Service Revenue Procedure 98 -41, Internal Revenue Bulletin 1998 -32,
August 10, 1998 (the "Amendment "), a copy of which is attached hereto and
incorporated herein by this reference.
SECTION 3. The City Manager is hereby authorized and directed to execute and
deliver the Amendment, substantially in the form presented to the City Council at this
meeting but with such additions, changes and corrections therein as the City Manager,
in consultation with the City Attorney, shall approve (such approval to be conclusively
evidenced by the execution and delivery of the Amendment) and such other documents
required to be executed and delivered thereunder, for and in the name and on behalf of
the City.
SECTION 4. This Resolution shall be effective immediately upon its adoption.
SECTION 5. The City Clerk shall certify the adoption of this Resolution and
certify this record to be a full true, correct copy of the action taken.
RESOLUTION NO. 4104
AMENDING DEFERRED COMPENSATION
PLSNA WITH PERS AND ICCMARC
PAGE NO. 2
PASSED, APPROVED, AND ADOPTED this 1511, day of December, 1998.
Mike Gordon, Mayor
ATTEST:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO 1
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 said City is five; that the
foregoing Resolution No. 4104 was duly passed and adopted by said City Council,
approved and signed by the Mayor, and attested to by the City Clerk, all at a regular
meeting of said Council held on the 15th day of December, 1998, and the same was so
passed and adopted by the following vote:
AYES: Go dont Jacobs, McDowell, Wernick
NOES: None
ABSENT: Gaines
ABSTAIN: None
'e �j ��Amd -
loy Cindy Mo & en, City Clerk
APPROVED AS TO FORM:
ark D. Hensley, City rney
RESOLUTION NO. 4104
AMENDING DEFERRED COMPENSATION
PLSNA WITH PERS AND ICCMARC
PAGE NO. 3