Res 1304 - Adopt ICMA 401 (A)
COUNCIL BILL NO. 1640
RESOLUTION NO. 1304
A RESOLUTION ADOPTING THE 401(A) MONEY PURCHASE PLAN AND TRUST IN THE
FORM OF THE ICMA RETIREMENT CORPORATION PROTOTYPE MONEY PURCHASE PLAN AND
TRUST.
WHEREAS, Resolution No. 1071, dated July 22, 1991, adopted the
original 401(A) Money Purchase Plan and Trust Agreement administered by
the ICMA Retirement corporation, and
WHEREAS, in order to comply with current federal laws and
Internal Revenue Service regulations, it is necessary to adopt a new
(401)A Money Purchase Plan and Trust agreement which has received a
favorable opinion from the Internal Revenue Service, and
WHEREAS, the ICMA Retirement Corporation will continue to
administer the plan and the funds held under the plan shall be invested
in the ICMA Retirement Trust established by public employers for the
collective investment of funds held under their retirement and deferred
compensation plans, now, therefore,
THE CITY OF WOODBURN RESOLVES AS FOLLOWS:
Section 1. That the city of Woodburn hereby adopts the money
purchase retirement plan (the "Plan") in the form of the ICMA Retirement
corporation Prototype Money Purchase Plan and Trust Agreement pursuant to
the specific provisions of the Adoption Agreement, a copy is attached
hereto and, by this reference, incorporated herein.
section 2. That the City of Woodburn hereby agrees to serve as
trustee under the Plan and to invest all funds held under the Plan in the
ICMA Retirement Trust. The city Administrator shall be the coordinator
for the Plan and shall receive necessary reports, notices, etc. from the
ICMA Retirement corporation or the ICMA Retirement Trust, and shall cast,
on behalf of the city, any required votes under the ICMA Retirement
Trust. Administrative duties relating to the plan may be further
delegated to appropriate departments.
Section 3. That the City Administrator and city Recorder are
hereby authorized to execute all necessary agreements with the ICMA
Retirement Corporation incidental to the administration of the Plan.
Approved as to form;11.~;()1../1 0- '[, - '1 S
city Attorney Date
Page 1 - COUNCIL BILL NO. 1640
RESOLUTION NO. 1304
Passed by the council
Submitted to the Mayor
Approved by the Mayor
Filed in the Office of the Recorder
ATTEST
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Ma~ennant, Recorder
city of Woodburn, Oregon
Page 2 - COUNCIL BILL NO. 1640
RESOLUTION NO. 1304
...--
June 12, 1995
June 13, 1995
June 13, 1995
June 13, 1995
ICMA Retirement Corporation
Prototype Money Purchase
Plan & Trust
Adoption Agreement
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ICMA RETIREMENT CORPORATION
PROTOTYPE MONEY PURCHASE PLAN & TRUST
ADOPTION AGREEMENT
#001
Account Number 109103
The Employer hereby establishes a Money Purchase Plan and Trust to be known as
CITY OF WOODBURN NON-UNION,NON-BARGAIN.
(the "Plan") in the form of the ICMA Retirement Corporation Prototype Money Purchase Plan
and Trust.
This Plan is an amendment and restatement of an existing defined contribution money purchase
plan.
[&l
Yes
o
No
If yes, please specify the name of the defined contribution money purchase plan which this Plan
hereby amends and restates:
I.
Employer:
CITY OF WOODBURN,OREGON
II. Prototype Sponsor:
Name:
ICMA Retirement Corporation
Address:
777 N. Capitol Street, N.E.
Washington, D.C. 20002-4240
Telephone Number: (202) 962-4600
III. The Effective Date of the Plan shall be the first day of the Plan Year during which the
Employer adopts the Plan, unless an alternate Effective Date is hereby specified: 01L01
IV. Plan Year will mean:
o The twelve (12) consecutive month period which coincides with the
limitation year. (See Section 6.05(i) of the Plan.)
[&l The twelve (12) consecutive month period commencing on 01L01 and each
anniversary thereof.
V. Normal Retirement Age shall be age SSJl (not to exceed age 65).
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VI. ELIGIBILITY REQUIREMENTS:
1. The following group or groups of Employees are eligible to participate in the Plan:
All Employees
All Full-Time Employees
Salaried Employees
~ Non-union Employees
_ Management Employees
Public Safety Employees
General Employees
X Other (specify below)
NON-UNION MANAGEMENT EMPLOYEES
The group specified must correspond to a group of the same designation that is
defined in the statutes, ordinances, rules, regulations, personal manuals or other
material in effect in the state or locality of the Employer.
2. The Employer hereby waives or reduces the requirement of a twelve (12) month
Period of Service for participation. The required Period of Service shall be SIX
MONTHS (write N/A if an Employee is eligible to participate upon employment).
If this waiver or reduction is elected, it shall apply to all Employees within the
Covered Employment Classification.
3. A minimum age requirement is hereby specified for eligibility to participate. The
minimum age requirement is 1.8.Jl (not to exceed age 21. Write N/A if no
minimum age is declared.)
VII. CONTRIBUTION PROVISIONS
1. The Employer shall contribute as follows (choose one, if applicable):
[&] Fixed Employer Contributions With or Without Mandatory Participant
Contributions.
The Employer shall contribute on behalf of each Participant 2JlO. % of Earnings
or $ fij}fi for the Plan Year (subject to the limitations of Article VI of the Plan).
Each Participant is required to contribute 6Jill % of Earnings or $ 0Jl0 for the
Plan Year as a condition of participation in the Plan. (Write "0" if no contribution
is required.) If Participant Contributions are required under this option, a
Participant shall not have the right to discontinue or vary the rate of such
contributions after becoming a Plan Participant.
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The Employer hereby elects to "pick up" the Mandatory/Required Participant
Contribution.
[8]
Yes
o
No
[Note to Employer: Neither an opinion letter issued by the Internal
Revenue Service with respect to the Prototype Plan, nor a determination letter
issued to an adopting Employer is a ruling by the Internal Revenue Service that
Participant contributions that are picked up by the Employer are not includable in
the Participant's gross income for federal income tax purposes. The Employer
may seek such a ruling.
Picked up contributions are excludable from the Participant's gross income
under section 414(h)(2) of the Internal Revenue Code of 1986 only if they meet the
requirements of Rev. Rul. 81-35, 1981-1 C.B. 255. Those requirements are (1)
that the Employer must specify that the contributions, although designated as
employee contributions, are being paid by the Employer in lieu of contributions by
the employee; and (2) the employee must not have the option of receiving the
contributed amounts directly instead of having them paid by the Employer to the
plan.]
o Fixed Employer Match of Participant Contributions.
The Employer shall contribute on behalf of each Participant _ % of Earnings for
the Plan Year (subject to the limitations of Articles V and VI of the Plan) for each
Plan Year that such Participant has contributed _ % of Earnings or $-. Under
this option, there is a single, fIxed rate of Employer contnbutions, but a Participant
may decline to make the required Participant contributions in any Plan Year, in
which case no Employer contribution will be made on the Participant's behalf in
that Plan Year.
o Variable Employer Match of Participant Contributions.
The Employer shall contribute on behalf of each Participant an amount determined
as follows (subject to the limitations of Articles V and VI of the Plan):
_ % of the Participant contributions made by the Participant for the Plan
Year (not including Participant contributions exceeding _ of Earnings or $ -);
PLUS _ % of the contributions made by the Participant for the Plan Year
in excess of those included in the above paragraph (but not including Participant
contributions exceeding in the aggregate _ % of Earnings or $ -).
Employer Contributions on behalf of a Participant for a Plan Year shall not
exceed $ _ or _ % of Earnings, whichever is 0 more or 0 less.
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2. Each Participant may make voluntary (unmatched), after-tax contribution, subject
to the limitations of Section 4.05 and Articles V and VI of the Plan.
[ill Yes 0 No
3. Employer contributions and Participant contributions shall be contributed to the
Trust in accordance with the following payment schedule:
MONTHLY
VIII. E~IN(]S
Earnings, as defined under Section 2.09 of the Plan, shall include:
(a)
Overtime
[ill
Yes
o
No
(b)
Bonuses
[ill
Yes
o
No
IX. LIMITATION ON ALLOCATIONS
If the Employer (i) 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,
and/or (ii) maintains a welfare benefit fund (as defined in section 419(e) of the Code) or
an individual medical account (as defined in section 415(1)(2) of the Code, under which
amounts are treated as Annual Additions with respect to any Participant in this Plan) the
Employer hereby agrees to limit contributions to all such plans as provided herein, if
necessary in order to avoid excess contributions (as described in Sections 6.03 and 6.04
of the Plan).
1. If the Participant is covered under another qualified defined contribution plan
maintained by the Employer, other than a Regional Prototype Plan, the provisions
of Section 6.02(a) through (t) of the Plan will apply as if the other plan were a
Master Prototype Plan, unless another method has been indicated below.
o Other Method. (Provide the method under which the plans will limit total
Annual Additions to the Maximum Permissible Amount, and will properly
reduce any excess amounts, in a manner that precludes Employer
discretion. )
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2. If the Participant is or has ever been a participant in a defined benefit plan
maintained by the Employer, and if the limitation in Section 6.04 of the Plan
would be exceeded, then the Participant's Projected 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 does not provide for such
reduction, or if the limitation is still exceeded after the reduction, annual additions
shall be reduced to the extent necessary in the manner described in Sections 6.01
through 6.03. The methods of avoiding the limitation described in this paragraph
will not apply if the Employer indicates another method below.
o Other Method. (Note to Employer: Provide below language which will
satisfy the 1.0 limitation of section 415(e) of the Code. Such language must
preclude Employer discretion. See section 1.415-1 of the Regulations for
guidance. )
3. The limitation year is the following 12-consecutive month period:
X. VESTING PROVISIONS
The Employer hereby specifies the following vesting schedule, subject to (1) the minimum
vesting requirements as noted and (2) the concurrence of the Plan Administrator.
Years of Specified Minimum
Service Percent Vesting
C..ompleted Vestine Requirement..* *
Zero 0 % No minimum
One 33 % No minimum
Two 66 % No minimum
Three 100 % Not less than 20%
Four 100 % Not less than 40%
Five 100 % Not less than 60%
Six 100 % Not less than 80%
Seven, or more 100 % Must equal 100%
(**These minimum vesting requirements conform to the Code's three to seven year vesting
schedule. If the employee becomes 100% vested by the completion of five years of
service, there is no minimum for years three and four.)
XI. Loans are permitted under the Plan, as provided in Article XIV:
o
Yes
1&1
No
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XII. The Employer hereby attests that it is a unit of state or local government or an agency or
instrumentality of one or more units of state or local government.
XIII. The Prototype Sponsor hereby agrees to inform the Employer of any amendments to the
Plan made pursuant to Section 15.05 of the Plan or of the discontinuance or abandonment
of the Plan.
XIV. The Employer hereby appoints the Prototype Sponsor as the Plan Administrator pursuant
to the terms and conditions of the ICMA RETIREMENT CORPORATION PROTOTYPE
MONEY PURCHASE PLAN & TRUST.
The Employer hereby agrees to the provisions of the Plan and Trust.
XV. The Employer hereby acknowledges it understands that failure to properly fill out this
Adoption Agreement may result in disqualification of the Plan.
XVI. An adopting Employer may not rely on a notification letter issued by the National or
District Office of the Internal Revenue Service as evidence that the Plan is qualified under
section 401 of the Internal 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.
This Adoption Agreement may be used only in conjunction with basic Plan document
number 001.
In Witness Whereof, the Employer hereby causes this Agreement to be executed on
this 19th day of June , 19li.
EMPLOYER
Accepted: ICMA RETIREMENT CORPORATION
By:
~
By:
Title:
City Administrator
Title: Corporate Secretary
Attest:
Attest:
ICMA Retirement Corporation 0 P.O. Box 962200 Washington, DC 0 20090-622001-800-326-7272
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