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Res 1071 - Es401(A) Purch Plan COUNCIL BILL NO. 1323 RESOLUTION NO. 1071 A RESOLUTION AUTHORIZING THE ESTABLISHMENT OF A 401 (A) MONEY PURCHASE PLAN AND TRUST IN THE FORM OF THE ICMA RETIREMENT CORPORATION PROTOTYPE MONEY PURCHASE PLAN AND TRUST. WHEREAS, the City of Woodburn 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 their beneficiaries in the event of death; and WHEREAS, the City of Woodburn desires that a 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 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 establishes a money purchase retirement plan (the "Plan") in the form of the ICMA Retirement Corporation Prototype Money Purchase Plan and Trust 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 executes the ICMA Retirement Trust, a copy is attached hereto and, by this reference, incorporated herein. Section 3. 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. Page 1 - COUNCIL BILL NO. 1323 RESOLUTION NO. 1071 Section 4. The Mayor and Deputy 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~'~ ~ 7- / b - 7 / City Attorney Date APPROVED tr41c,L ~ FRED W. KYSER, MAYO Passed by the Council July 22, 1991 Submitted to the Mayor Jul y 25, 1991 July 25, 1991 Approved by the Mayor Filed in the Office of the Recorder July 25, 1991 ATTEST /lit -~f- Mary ~ant, Deputy Recorder City of Woodburn, Oregon Page 2 - COUNCIL BILL NO. 1323 RESOLUTION NO. 1071 ICMA RETIREMENT CORPORATION PROTOTYPE MONEY PURCHASE PLAN & TRUST ADOPTION AGREEMENT (#0001) The Employer hereby establishes a Money Purchase Plan and Trust to be known as the City of Woodburn Non-Union, Non-Bargaining Unit Plan (the "Plan") in the form of the ICMA Retirement Corporation Prototype Money Purchase Plan and Trust. This Plan is not an amendment and restatement of an existing defined contribution money purchase plan. I. Employer: The City of Woodburn, Oregon. II. Prototype Sponsor: Name: Address: ICMA Retirement Corporation 777 N. Capitol Street N.E. Washington, D.C. 20002-4240 (202)962-4600 Telephone Number: 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: July 1,1991. IV. Plan Year will mean: The twelve (12) consecutive month period commencing on July 1 and each anniversary thereof. V. Normal Retirement Age shall be age 55. VI. ELIGIBILITY REQUIREMENTS: 1. The following groups of Employees are eligible to participate in the Plan: Non-Union Management Employees 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 (6) months. This waiver or reduction 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 eighteen (18). Page 1 - ICMA AGREEMENT ......-- t----.,. -4.-"""'_;_'~"_'_'__""""~.f-"""' VII. CONTRIBUTION PROVISIONS 1. Fixed Employer Contributions With or Without Mandatory Participant Contributions. The Employer shall contribute on behalf of each Participant nine percent (9%) of Earnings for the Plan Year (subject to the limitations of Article VI of the Plan). Each Participant is required to contribute six percent (6%) of Earnings for the Plan Year as a condition of participation in the Plan. 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. The Employer hereby elects to "pick up" the Mandatory/Required Participant Contribution. 2. Each Participant may make a voluntary (unmatched), after-tax contribution, subject to the limitations of Section 4.04 and Articles V and VI of the Plan. 3. Employer contributions and Participant contributions shall be contributed to the Trust in accordance with the following payment schedule: Contributions shall be remitted at the end of each calendar month. VIII. EARNINGS. Earnings, as defined under Section 2.09 of the Plan shall include Overtime and Bonuses. IX. LIMITATION ON ALLOCATIONS. If the Employer (1 )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 (2) 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). A. If the Participant is covered under another qualified defined contribution plan maintained by the Employer, other than a Master or Prototype Plan, the provisions of Section 6.02(a) through (f) of the Plan will apply as if the other plan were a Master or Prototype Plan. B. If the Participant is or has ever been a participant in a defined benefit plan Page 2 - ICMA AGREEMENT ... <.-. .., 1" ,~- -..,.-' 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. C. The limitation year is the following twelve (12) consecutive month period: July 1 through June 30. X. VESTING PROVISIONS. The Employer hereby specifies the following vesting schedule, subject to (1) minimum vesting requirement as noted and (2) the concurrence of the Plan Administrator. Years of Specified Minimum Service Percent Vesting Completed Vestina Reauirements Less than One 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 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 servicel there is no minimum for years three and four.) XI. INVESTMENT OPTION A participant may direct his/her investment, without restriction, among various investment options available under the Trust. XII. BENEFITS UPON SEPARATION A. Upon separation from service for reason other than death, disability, or attainment of Normal Retirement Age, the Participant may elect to commence receiving benefits from the Employer Contribution Account (nonforfeitable Page 3 - ICMA AGREEMENT ~ -., -r .-.--........ ._.,-_.-,~~-- ---,...".,_._-,-...-...._-~_._---.~. interest), Participant Contribution Account or the Participant Portable Benefits Account. B. A distribution shall be made pursuant to Section 10.04 of the Plan, De Minimis Accounts. Further, the Participant shall be entitled to request that his/her entire Nonforfeitable Interest in his/her Account be transferred to another plan, pursuant to Section 10.03 of the Plan. XIII. Loans are not permitted under the Plan, as provided in Article XIV. XIV. 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. XV. 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. XVI. 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 and hereby agrees to the provisions of the Plan and Trust. XVII. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption Agreement may result in disqualification of the Plan. XVIII. An adopting Employer may not rely on a notification letter issued to the Prototype Sponsor by 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 25 day of July , 1991. EMPL..QY~R: () ~ By: d:~ t1/ O/.J....0v Title: Mavor /YJ C' --- I Attest: / { (tUCJ _ c" ~ Accepted: ICMA RETIREMENT CORPORATION By: By: Attest: Page 4 - ICMA AGREEMENT ~ .----<-..--.-t -..-..,.----