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Home My WebLink AboutRES 03-05RESOLUTION NO.03-05 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,PINAL AND MARICOPA COUNTIES,ARIZONA, AUTHORIZING ESTABLISHMENT OF A GOVERNMENTAL PROFIT-SHARING PLAN AND TRUST ADOPTION AGREEMENT;REPEALING ANY CONFLICTING PROVISIONS;AND PROVIDING FOR SEVERABILITY. WHEREAS,the City of Apache Junction ("City")has employees rendering valuable services;and WHEREAS,the establishment of a profit sharing retirement plan benefits employees by providing funds for retirement and funds for their beneficiaries in the event of death;and WHEREAS,the City desires that a profit sharing retirement plan be administered by the International City Manager Association ("ICMA") Retirement Corporation and that the funds held in such plan be invested in the Vantage Trust Company,a trust established by public employers for the collective investment of funds held under their retirement and deferred compensation plans. NOW THEREFORE,BE IT RESOLVED that City hereby establishes a profit sharing retirement plan (the "Plan")in the form of the attached Exhibit A,the ICMA Retirement Corporation Governmental Profit -Sharing Plan and Trust Adoption Agreement. The Plan shall be maintained for the exclusive benefit of eligible employees and their beneficiaries;and BE IT FURTHER RESOLVED that the Mayor is authorized to execute the Declaration of Trust of the Vantage Trust Company subject to legal approval by the City Attorney.I t is intended this execution be operative with respect to any retirement or deferred compensation plan subsequently established by the City as long as the assets of the plan are invested in the Vantage Trust Company;and BE IT FURTHER RESOLVED that the City hereby agrees to serve as trustee under the Plan and to invest funds held under the Plan in the ICMA Retirement Trust:and BE IT FURTHER RESOLVED that the City's Finance Director or his or her designee shall be the coordinator for the Plan,shall receive reports and notices from the ICMA Retirement Corporation or the ICMA Retirement RESOLUTION NO.03-05 PAGE 1 OF 2 Trust,shall cast on behalf of City any required votes under the ICMA Retirement Trust,and may delegate any administrative duties relating to the Plan to the appropriate persons;and BE IT FURTHER RESOLVED that City hereby authorizes the Finance Director or his or her designee to execute all necessary documents with the ICMA Retirement Corporation incidental to the administration of the Plan. PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA,THIS 4TH DAY OF NOVFMBFR ,2003 . SIGNED AND ATTESTED TO THIS 4TH 2003 ATTEST: KATHLEEN CONNELLY City Clerk APPROVED AS TO FORM: io-28.03 RICHARD J.STERN City Attorney RESOLUTION NO.03-05 PAGE 2 OF 2 DAY OF NOVEMBER DOUGLAS PLEMAN Mayor EXHIBIT A ICMA RETIREMENT CORPORATION GOVERNMENTAL PROFIT-SHARING PLAN & TRUST ADOPTION AGREEMENT PLAN NUMBER 10- The Employer hereby establishes a Profit -Sharing Plan and Trust to be known as (the "Plan") in the form of the ICMA Retirement Corporation Prototype Profit -Sharing Plan and Trust. This Plan is an amendment and restatement of an existing defined contribution profit-sharing plan. Yes X No I.Employer:City of Apache Junction II.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:December 1, 2003. III.Plan Year will mean: (X)The twelve (12) consecutive month period which coincides with the limitation year.(See Section 5.05(i) of the Plan.) ( )The twelve (12) consecutive month period commencing on and each anniversary thereof. IV.Normal Retirement Age shall be age 50 (not to exceed age 65). V.ELIGIBILITY REQUIREMENTS: 1.The following group or groups of Employees are eligible to participate in the Plan: X All Employees _All Full -Time Employees _Salaried Employees _Non-union Employees _Management Employees Public Safety Employees X General Employees Other (specify below) City Attorney, City Manager, City Magistrate The group specified must correspond to a group of the same designation that is defined in the statutes, ordinances, rules, regulations, personnel 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 N/A (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 N/A (not to exceed age 21. Write N/A if no minimum age is declared.) VI.CONTRIBUTION PROVISIONS 1.The Employer shall contribute as follows: (X)Discretionary Employer Contributions The Employer will determine the amount of Employer contributions to be made to the Plan for each Plan Year. 2.Each Participant may make a voluntary (unmatched), after-tax contri- bution, subject to the limitations of Section 4.06 and Article V of the Plan. X Yes No 2 3.Employer contributions and Participant contributions shall be contributed to the Trust in accordance with the following payment schedule:As 457 Deferred Compensation Plan contributions are paid. VII.CASH OR DEFERRED ARRANGEMENT UNDER SECTION 401(k) 1.This Plan will be a cash or deferred arrangement under section 401(k) of the Code. Yes X No Each Participant may elect to make Elective Deferrals, not to exceed % of Earnings for the Plan Year, subject to the limitations of Article V of the Plan. The provisions of the Cash or Deferred Arrangement (CODA) may be made effective as of the first day of the Plan Year in which the CODA is adopted.However, under no circumstances may a salary reduction agreement or other deferral mechanism be adopted retroactively. [Note to Employer:Under current law, the cash or deferred arrangement (CODA) option under section 401(k) of the Code is not available to an employer that is a State or local government or political subdivision thereof, or any agency or instrumentality thereof, unless that employer established a CODA on or before May 6, 1986.] 2.The Employer will match Elective Deferrals. Yes X No The Employer will contribute as follows (choose one, if applicable): (Employer Percentage Match Of Elective Deferrals. The Employer shall contribute on behalf of each Participant an amount determined as follows (subject to the limitations of Article V of the Plan): °A, of the Elective Deferrals made on behalf of the Participant for the Plan Year (not including Elective Deferrals exceeding % of Earnings or $); PLUS % of the Elective Deferrals made on behalf of the Participant for the Plan Year in excess of those included in the above paragraph (but not including Elective Deferrals exceeding in the aggregate % of Earnings or $). 3 ( VIII.EARNINGS Employer Contributions on behalf of a Participant for a Plan Year shall not exceed $or % of Earnings, whichever is more or less. Employer Dollar Match Of Elective Deferrals. The Employer shall contribute on behalf of each Participant an amount determined as follows (subject to the limitations of Article V of the Plan): for each % of Earnings or $that the Employer contributes on behalf of the Participant as Elective Deferrals for the Plan Year (not including Elective Deferrals exceeding % of Earnings or $); PLUS $for each % of Earnings or $that the Employer contributes on behalf of the Participant as Elective Deferrals for the Plan Year in excess of those included in the above paragraph (but not including Elective Deferrals 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 more or less. Earnings, as defined under Section 2.09 of the Plan, shall include: (a)Overtime X Yes No (b)Bonuses X Yes No IX.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 limit contributions to all such plans as provided herein, if necessary in order to avoid excess contributions (as described in Section 5.04 of the Plan). 1.If the Participant is covered under another qualified defined contribution plan maintained by the Employer, the provisions of Section 5.04(a) 4 through (f) of the Plan will apply, unless another method has been indicated below. ( )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.) 2.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 Service Percent Completed Vested Zero 100 % One _ % Two _ o k Three ______ / 0,0 Four _ o k Five ______ Six _ 0 - Seven _ _ _ _ __ _ Eight %___ Nine _0/0 Ten 0/0 XI.WITHDRAWALS AND LOANS 1.Hardship withdrawals are permitted under the Plan as provided in Section 9.07, from the following accounts only (choose as applicable): a.Employer Contribution Account (Nonforfeitable Interest) X Yes No 5 b.Participant Elective Deferral Account (not including earnings thereon accrued after December 31, 1988) Yes X No 2.In-service distributions are permitted under the Plan as provided in Section 9.08. X Yes No 3.Loans are permitted under the Plan, as provided in Article XIII: X Yes No 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 Plan Administrator hereby agrees to inform the Employer of any amendments to the Plan made pursuant to Section 14.05 of the Plan or of the discontinuance or abandonment of the Plan. XIV.The Employer hereby appoints the ICMA Retirement Corporation as the Plan Administrator pursuant to the terms and conditions of the ICMA RETIREMENT CORPORATION GOVERNMENTAL PROFIT-SHARING 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 rely on an advisory letter issued by the Internal Revenue Service as evidence that the Plan is qualified under section 401 of the Internal Revenue Code. 6 In Witness Whereofy the Employer hereby causes this Agreement to be executed on this 6//7j day of /VaiVz&Ze-7--,2003. EMPLOYER By: Douglas ;Coleman Title:Mayor Attest: Kathleen Connelly City Clerk APPROVAL AS TO FORM: c 2 0 / D .2 6 .0 3 R. Joel Stern, City Attorney ICMA RETIREMENT CORPORATION By: Paul Gallagher Title:Corporate Secretary Attest: 7