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HomeMy WebLinkAboutres2001-025WHATCOM COUNTY COUNCIL AGENDA BILL NO. 2001 -180 CLEARANCES Initial Date DvefieceivedinCouncif Orw eada Date Assinedio: 'rhad+ar: eMy WefervGimm� ulvel D, Ic' !f� (� U :: ^r i . wr 1V b q q VAY < G LGOI WHATCOMI COUN COUNCIL 5/29/01 "� Consent Agenda- Finance &Admire Svcs Committee Division Head: Kamm Sterling Ccens �5 of 5129101 Cauneil Agenda Dept Head: armory G. Dealer / S/i I ry Prvs�^r DanidL Gibson is (a Par Rrcmen rate M SUBJECT: Resolution to create Money Purchase Plan and Trust ATTACHMENTS: SEPA review required? ( ) Yes ( x ) NO SEPA review completed? (' ) Yes ( x ) NO Should Clerk schedule a hearing ? ( ) Yes ( x) NO Requested Date: SUMMARYSTATEMENT: resolution and Money Purchase Plan & Trust Adoption Agreement for Whatcom County Supplemental Retirement Plan Distribution Request Indicate those who should receive a copy after Council action. List specific names to the sight. As Facilities mianageinem AS Fsnan" ASHumun Rerources wendy Weer -Giman AS Info Servires Assessor Auditor Cooperaare Extension charier Court Ececutive HeaDh Hearing Examiner Jaa COUNCIL ACTION TAKEN: 2001-180 5(2912001: Approved 60, McShane absent, Res. #2001 -025 Belated County Contract #: d"i` "o` Para planning Prosecutor Public Wants Sheriff Superior Court Tres re� ah<. Related File Numbers: Ordinance or Resolutd NuWd-� r (this item): �/v ' 025 PROPOSED BY: County Executive INTRODUCTION DATE: May 29, 2001 RESOLUTION NO. 01- 025 WHATCOM COUNTY SUPPLEMENTAL RETIREMENT PLAN WHEREAS, Whatcom County (the "County') has employees rendering valuable services; and WHEREAS, the establishment of a money purchase supplemental retirement plan benefits employees by providing funds for retirement and funds for their beneficiaries in the event of death; and WHEREAS, the County has experienced retention and recruitment difficulties for unrepresented positions; and WHEREAS, the County desires that its 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, BE IT RESOLVED. by the Whatcom County Council that the County hereby establishes or has established a money purchase retirement plan (the 'Plan') in the form of: ❑ The ICMA Retirement Corporation Governmental Money Purchase Plan & Trust, pursuant to the specific provisions of the Adoption Agreement (copy attached hereto). The Plan shall be maintained for the exclusive benefit of eligible employees and their beneficiaries; and BE IT FURTHER RESOLVED that the County hereby executes the Declaration of Trust of the ICMA Retirement Trust, attached hereto, intending this execution to be operative with respect to any retirement or deferred compensation plan subsequently established by the Employer, if the assets of the plan are to be invested in the ICMA Retirement Trust. BE IT FURTHER RESOLVED that the County 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 Human Resources Manager shall be the coordinator for LMI the Plan; shall receive reports, notices, etc., from the ICMA Retirement Corporation or the ICMA Retirement Trust; shall cast on behalf of the Employer, any required votes under the ICMA Retirement Trust; may delegate any administrative duties relating to the Plan to appropriate departments; and is authorized to execute all necessary agreements with the ICMA Retirement Corporation incidental to the administration of the Plan. APPROVED this 29 day of May , 2001. ATTEST: 1. na Brown-Davis, Clerk of the APPROVED AS TO FORM: Senior Civil Deputy Prosecutor WHATCOM COUNTY COUNCIL WHATCOM COUNTY, WASHINGTON Page 2 ICMA RETIREMENT CORPORATION GOVERNMENTAL MONEY�PURCHASE PLAN & TRUST ADOPTION AGREEMENT The Employer hereby establishes a Money Purchase Plan and Trust to be known as: Whatcom County Supplemental Retirement Plan This Plan is an amendment and restatement of an existing defined contribution money purchase plan. Yes X No If yes, please specify the name of the defined contribution money purchase plan which this Plan hereby amends and restates: Employer: County of Whatcom, Washington 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: July 1, 2001 III. Plan Year will mean: (X) The twelve (12) consecutive month period which coincides with the limitation year. (See Section 5.04(i) of the Plan.) ( ) The twelve (12) consecutive month period commencing on and each anniversary thereof. IV. Normal Retirement Age shall be age 55 (not to exceed age 65). V. ELIGIBILITY REQUIREMENTS 1. The following group or groups of Employees are eligible to participate in the Plan: The employees eligible to participate in the Plan are: Unrepresented Employees whose salary and benefits are paid for solely by Whatcom County. Participation in the Plan is mandatory for eligible employees. 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 (NA). 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 (NA). VI. CONTRIBUTION PROVISIONS 1. The Employer shall contribute as follows (choose one): (X) Variable Employer Match of Participant Contributions to the Employer's IRC 457 Deferred Compensation Plan, or Fixed Employer Match of Mandatory Participant Contributions to this Money Purchase Pension Plan, depending on the Participant's election to contribute. The Employer shall contribute on behalf of each Participant an amount determined as follows (subject to the limitations of Article V of the Plan): 50% of the contributions made by the participant to the IRC 457 Deferred Compensation Plan, (not including Participant contributions exceeding 4% of earnings) in and for each pay period of the Plan year. Or, 50% of any mandatory contributions made by the Participant to this Money Purchase Pension Plan, (not including Participant contributions exceeding 4% of earnings) in and for each pay period of the Plan year. Each Participant most make a one -time, irrevocable election to contribute to this Plan. The Participant may choose to contribute at one of the following optional rates: a. 0% of earnings b. 4% of earnings c. 6% of earnings d. 10% of earnings e. 14% of earnings 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. X Yes No The pick -up provision specifies that the contribution is treated, for federal income tax purposes, as though it is made by the employer. The pick -up provision allows the employee to defer taxes on the employee mandatory contribution. The actual result is the same as if the contribution were a reduction in that employee's salary by the amount of the contribution. Picked up contributions are NOT exempt from Social Security tax. (Note to Employer: A determination letter issued to an adopting Employer is not 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 fr9m 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.) 2. Each Participant may make a voluntary (unmatched), after -tax contribution, subject to the limitations of Section 4.05 and Article V of the Plan. Yes X_ No 3. Employer contributions and Participant contributions shall be contributed to the Trust in accordance with the following payment schedule: Bi- Weekly Payroll Contributions VII. EARNINGS Earrings, as defined under Section 2.09 of the Plan, shall include only: (a) Base Salary X Yes No (b) Vacation and Paid Administrative Leave Cash Outs X Yes No VIII. LIMITATION ON ALLOCATIONS If the Employer maintains or ever maintained another qualified plan in which any Participant in the Plan is (or was) 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 Sections 5.02 and 5.03 of the Plan). I. If the Participant is covered under another qualified defined contribution plan maintained by the Employer, the provisions of Section 5.02(a) through (f) of the Plan will apply unless another method has been indicated below. O Other Method. (Provided 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. 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 5.03 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 5.02. 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: N/A IX, 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 Vestine Zero One Two 40% Three 60% Four 8 Five 100% X. Loans are permitted under the Plan, as provided in Article XIII: Yes X No M. 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. X11. 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. XIII. The Employer hereby appoints the ICMA Retirement Corporation as the Plan Administrator pursuant to the terms and conditions of the ICMA RETIRMENT CORPORATION GOVERNMENTAL MONEY PURCHASE PLAN & TRUST. The Employer hereby agrees to the provisions of the Plan and Trust. XIV. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption Agreement may result in disqualification of the Plan. XV. An adopting Employer may not rely on a determination 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. In Witness Whereof, the Employer hereby causes this Agreement to be executed on this 29th day of May 2001. EMPLOYER Accepted:, ICMA RETIREMENT CORP By: By: Title: Whatcom County Executive Title: Approved as to Form: i a %i { .,