98-R-03
'-"
..,
RESOLUTION NO. 98-R-03
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
EDGEW A TER, FLORIDA, ESTABLISHING A MONEY
PURCHASE 401(a) RETIREMENT PLAN FOR THE CITY
MANAGER THROUGH THE PUBLIC EMPLOYEES
BENEFIT SERVICES CORPORA TION (PEBSCO);
REPEALING RESOLUTIONS IN CONFLICT HEREWITH
AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council acknowledges that the City Manager renders valuable
services; and
WHEREAS, the City desires to establish a pension plan pursuant to the provisions of
Section 401(a) of the Internal Revenue Code of 1986, as amended; and
WHEREAS, the City intends to provide reasonable retirement security for its employees;
and
WHEREAS, the City and the City Manager have contractually agreed to the establishment
of a retirement plan as well as the level of contribution to be made by the City into such plan; and
WHEREAS, the Public Employees Benefit Services Corporation (PEBSCO) has been
selected to provide record keeping and administrative services for the pension plan;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Edgewater,
Florida:
Section 1.
A money purchase 401 (a) retirement plan (the "Plan") is hereby established
in the form of the Public Employees Benefit Services Corporation Plan pursuant to the specific
provisions of the attached Agreement which are hereby approved and incorporated by reference as
Exhibit A. The Plan will be maintained for the exclusive benefit of eligible employees and their
beneficiaries.
Section 2.
The City of Edgewater appoints PEBSCO to provide record keeping,
employee education and other technical and administrative services relating to the plan.
Section 3.
The City hereby authorizes and directs the Finance Director as the coordinator
for the Plan and who shall receive necessary reports, notices, etc..
Section 4.
The City of Edgewater hereby appoints 1. Kevin Grace as Trustee and upon
acceptance, by executing the Adoption Agreements of the Plan, shall receive the necessary reports,
98-R-03
1
notices, etc. from the Public Employees Benefit Services Corporation (PEBSCO) and Nationwide
Life Insurance Company.
Section 5. The City of Edgewater hereby authorizes and directs the Mayor to perform
all acts and sign all documents necessary to put said Plan into operation.
Section 6. All resolutions or parts of resolutions in conflict herewith be and the same are
hereby repealed.
Section 7. This resolution shall take effect upon adoption.
After Motion by Councilman Gomto and Second by Councilman Hammond, the vote on this
resolution was as follows:
Mayor Randy G. Allman AYE
Councilman Jim Gornto AYE
Councilman Myron F. Hammond AYE
Councilman Gary W. Roberts AYE
Councilwoman Judy Lichter AYE
PASSED AND DULY ADOPTED this 3`a day of March, 1998.
98-R-03
3
CITY COUNCIL OF THE
CITY OF EDG/EEWATER, FLORIDA
By f4
R dy G. Allman
Mayor
APPROVED FOR FORM
AND CORRECTNESS:
Wildd Clayton
Interim City Attorney
MONEY PURCHASE GOVERNMENT RETIREMENT PLAN AND TRUST
WITH 414(h) PICK-UP OPTION ADOPTION AGREEMENT
The government employer hereby establishes a 414(h) "pick-up" money purchase plan and trust
for the benefit of its Eligible Employees and the Eligible Employees of each Participating Employer
which adopts the Plan. The plan and trust shall consist of the Government Retirement Plan and
Trust numbered PO 2100 and this Adoption Agreement. This document may only be used with the
Government Retirement Plan and Trust Basic Plan Document numbered PO 2100.
1. Name of Employer: C 1/
(a)
Business Entity: [ ] Corporation —Date of Incorporation
[ ] Partnership [ ] Sole Proprietor [ ] S Corporation [ ] Other:
(b) Type of Business or Entity (govemmeental; not -for -profit): lroe
2. Employer Address: lOy lfl
3. Employer Tax Year End AS0 Employer Identification No.
4. Limitation Year (elect one):
Calendar Year
[ ] other 12 month period ending:
5. Plan Name: (2/n M& R I Money Purchase Plan.
Plan No. 001-
6. Plan Status (check a or b):
(a) Newly Adopted Plan
(b) [) Amendment and restatement of the (name of plan)
Effective date of amendment
This amendment shall not apply to any Employee who severed employment
before the effective date of amendment. The Accrued Benefit and vesting
percentage of each Participant who is an Employee on the effective date of
amendment shall be no less than before the amendment.
Money Purchase - (Revised 3/4/97)
TRA'86 Version (Government)
PO 2100-2
EXHIBIT 7 - DEFINITIONS
1. "Allocation Date" (Section 2.5) shall mean (elect one):
(a) f the 3I day of the month of 11;- e in each Plan Year
(b) [ ] other (please specify at least one day in each Plan Year)
2. "Valuation Date" (Section 2.54) shall mean (elect one):
(a) [ ] the _ day of the month of in each Plan Year
(b) other please specify at least one day in each Plan Year) 7eff �7 ✓/mac
SA30
3. "Reserved"
4. "Compensation" (Sections 2.13 and 8.5(b)) For the purpose of determining a Participant's
allocation (Article VII) and his Annual Addition (Article VIII), Compensation shall mean (elect
a or b):
(a) *1�y W-2 Earnings (as defined in Section 8.5(b)).
(b) [ ] Section 3401(a) Wages (as defined in Section 2.47).
(c) [] Other: _
NOTE: If "other" is checked in 4(c) above, for the purpose of determining a
Participant's Annual Addition, Compensation shall mean W-2 Earnings Box 10.
j Check here if pursuant to Section 2.13, the Employer shall include in the definition of
\ Compensation above, for the purpose of determining a Participant's allocation (Exhibit
3), contributions made pursuant to Section 125, 402(h), 402(a)(8), 457, 414(h), or
403(b) of the Code.
Money Purchase PO2100-2
TRA'86 Version (Government) - 2 -
5. "Compensation Exclusions" (Section 2.13): For purposes of contributions and allocations
(Exhibit 3), the following Compensation shall not be considered (elect a, or one or more of
b, c, d, e, and f):
(a) �r None, all Compensation shall be considered
(b) [] Bonus
(c) [ ] Overtime
(d) [ ] Commissions
(e) [ ] Compensation in excess of $
M I
NOTE: If (b) through (f) is selected, the definition of Compensation selected must
meet the requirements of Code Section 414(s) and regulations thereunder.
6. The compensation period shall be the (Section 2.13) (elect a, b or c):
(a) Plan Year
(b) [ ] calendar year ending with or within the Plan Year
(c) [ ] Other:
(Such period must be permitted by Code Section 414(s) and regulations
thereunder.)
NOTE: Compensation, for the purpose of any Mandatory Employee Contribution, shall
not include any Compensation earned prior to the later of the Effective Date
of the Plan, or an Eligible Employee's Entry Date.
Money Purchase PO2100-2
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"Effective Date" (Section 2.18) means
NOTE: If this is an amendment and restatement of an existing plan, insert the original
plan effective date.
8. "Plan Year" (Section 2.42) means the 12 consecutive month period, or such lesser period
as a Participating Employer is in business, beginning on the _� day of ✓ ,and
ending on the _ day of TFi 4f in each year.
Money Purchase PO2100-2
TRA'86 Version (Government) - 4 -
EXHIBIT 2 - ELIGIBILITY REQUIREMENTS
1. CLASSIFICATION REQUIREMENTS (Section 2.21): Classifications of Employees that are
not eligible to participate in the Plan are (elect a or one or more of b through h):
(a) [ ] None: all employees are eligible;
(b) [ ] Covered by a Collective Bargaining Agreement: included in a unit of
employees where retirement benefits have been the subject of good faith
bargaining between representatives of such employee unit and the
Participating Employer, unless the resulting collective bargaining agreement
provides for the inclusion of such unit of employees under this Plan. Employee
representatives shall not include any organization more than half of whose
members are Employees who are owners, officers, or executives of the
Employer.
(c) [ ] Non-resident aliens who received no earned income from a Participating
Employer which constitutes income from sources within the United States.
(d) [ ] Salaried: compensated on a salaried basis;
(e) [ ] Commissioned: compensated on a commissioned basis;
(f) [ ] Hourly Paid: compensated on an hourly basis;
(g) [ ] Employees of an employer required to be aggregated with a Participating
Employer under Code Sections 414(b), (c), or (m) and persons deemed to be
employees under Code Section 414(n).
(h) kQ Other classification: ALL E* a FyP7' e6Y5 6-%Z-
2. SERVICE AND AGE REQUIREMENTS (Section 4.1):
(a) To be eligible to participate, an Eligible Employee must have completed the following
Eligibility Service requirements (check and complete appropriate box (1) and (2)
below):
(1) . SERVICE (2) AGE
X No Service Requirement No Age Requirement
_ Months from employment date (Specify Age)
(not to exceed 60)
_ Year(s) of Eligibility Service (not
to exceed 5)
Money Purchase PO2100-2
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If the service requirement elected is a stated number of months of service, each
Eligible Employee who has been employed with the Participating Employer for the
number of months elected shall be deemed to have completed the service
requirement regardless of the number of Hours Of Service actually performed. In
such a situation, Hour of Service, Break in Service, and Eligibility Service shall be
determined as provided in Article III.
(b) One year of Eligibility Service shall be credited to the Eligible Employee on the last
day of the Eligibility Computation Period in which he completes (not more
than 1,000) Hours Of Service.
Employment with all employers listed below shall be counted as Eligibility Service
on the same basis as if such employment had been with the Participating
Employer.
3. ENTRY DATE (Section 4.1) The entry date shall be the (elect one):
(a) date coinciding with satisfaction of all eligibility requirements.
(b) [ ] first day of the month coinciding with or next following satisfaction of all
eligibility requirements.
(c) [ ] first day of the Plan Year quarter following satisfaction of all eligibility
requirements.
(d) [ ] Plan Anniversary (elect one):
[ ] preceding [ ] coinciding with or next following -satisfaction of all
eligibility requirements.
(e) [ ] Plan Anniversary or the first day of the seventh month of the Plan Year
coinciding with or next following satisfaction of all eligibility requirements.
(f) [ ] Plan Anniversary nearest the date on which all eligibility requirements are
satisfied.
Money Purchase PO2100-2
TRA'86 Version (Government) - 6 -
EXHIBIT 3 - CONTRIBUTION FORMULA AND ALLOCATION FORMULA
1. CONTRIBUTION FORMULA (Section 6.1): The Participating Employer contribution for
each Participant who has completed the requirements specified below shall be (elect a,
b, c, or d):
(a) �Q [ �•% of Compensation
a�
(b) [ j $_ for each Hour of Service.
NOTE: In no event may the above formula provide a Participant with more than
25% of compensation as defined in Article Vill, Section 8.5(b).
(c) [ ] In accordance with the collective bargaining agreement between the
Participating Employer and (name of union)
2. PARTICIPATING EMPLOYEES' MANDATORY EMPLOYEE CONTRIBUTIONS (Section
6.3):
[ ] An Eligible Employee shall, subsequent to his Entry Date, contribute (please
complete)
of his Compensation to the Plan.
NOTE: The Mandatory Contribution shall be considered "picked -up" by the
Employer under Section 414(h) of the Code.
All Eligible Employees are required to make a Mandatory Contribution
as a condition of employment.
Not applicable.
3. ALLOCATION FORMULA (Section 7.1): The Participating Employer contribution allocated
to the Account of each Participant who has completed the requirements specified in
Section 6.2 shall be determined in accordance with the contribution formula elected in
Section 1 above.
Money Purchase PO2100-2
TRA'86 Version (Government) - 7 -
4. ELIGIBILITY FOR ALLOCATION (Section 7.2):
(a) A Participant who has completed less than 1,000 Hours of Service during a Plan
Year shall (elect 1 or 2):
(1) share in the Participating Employer's contribution (and forfeitures) for
such Plan Year if he completes (elect i or ii):
at least 1 Hour of Service.
more than 500 Hours of Service.
(2) [ ] not share in the Participating Employer's contribution (and forfeitures)
for such Plan Year.
(b) A Participant whose employment is terminated prior to the end of the Plan Year but
after he has completed the hour(s) specified in (a) above shall (elect 1 or 2):
(1) shall share in the Participating Employer's contribution (and for-
feitures) for such Plan Year.
(2) [ ] not share in the Participating Employer's contribution (and forfeitures)
for such Plan Year.
5. FORFEITURES (Section 11.2): Forfeitures shall occur (elect a or b):
(a) upon distribution to a terminated Participant of his vested Accrued Benefit,
or his fifth consecutive one year Break In Service, if earlier.
(b) I 1 after the Participant has incurred his fifth consecutive one year Break In
Service.
6. FORFEITURES (Section 11.2): Forfeitures shall be (elect a or b):
(a) [ ] reallocated to the accounts of other Participants.
(b) applied to reduce the next Participating Employer contribution.
Money Purchase PO2100-2
TRA'86 Version (Government) - 8 -
EXHIBIT 4 - INVESTMENTS
1. INVESTMENTS (Article IX): All assets of the Plan shall be invested by the Trustee except
that (elect a, b, c, or d):
(a) [ ] No exceptions
(b) The Employer shall direct the Trustee in selecting all investments.
( (c) The Participant shall direct, from eligible investments specified by the Plan
Administrator, the Trustee in selecting all investments for his Account.
(d) [ ] The Employer shall appoint an investment manager to direct the Trustee in
selecting all investments.
Name:
Address:
Telephone Number:
2. COMMON DUE DATE (Section 2.12) (elect a or b):
(a) [ ] The day of the month of in each year.
(b) [ J The following Dates:
NOTE: Insert N/A in 2(a) above if Insurance Contracts will not be an investment
option under this Plan.
Money Purchase PO2100-2
TRA'86 Version (Government) 9 -
1.
0
0
EXHIBITS - BENEFITS AND DISTRIBUTIONS
VESTING SCHEDULE (Section 11.1): A Participant's vested interest in his employer
subaccount shall be determined by the following schedule (elect one):
���ooaas�
a�0misos�
a��m
,
miser
INSURANCE POLICIES (Section 10.1) A Participant's vested interest in any Insurance
Policies purchased on his behalf shall be (elect one):
(a) [ ] 100% Vested upon purchase.
(b) [ ] Subject to the vesting schedule in 1 above.
3. VESTING COMPUTATION PERIOD (Section 2.55): The 12 consecutive month period,
or such lesser period as a Participating Employer is in business, ending on the � day
of v P, i in each year.
Money Purchase PO2100-2
TRA'86 Version (Government) - 10 -
NOTE: The Vesting Computation Period shall coincide with the Plan Year.
4. VESTING SERVICE (Sections 2.56 and 11.1): One year of Vesting Service shall be
credited to a Participant for each Vesting Computation Period during which he completes
at least (not to exceed 1,000) Hours of Service, beginning on his Employment
Date or Re-employment Date, subject to the exclusions elected in Section 5.
Employment with all employers listed below shall be counted as Vesting Service on the
same basis as if such employment had been with a Participating Employer.
5. EXCLUDED YEARS OF VESTING SERVICE (Section 2.56): In addition to years of
Vesting Service excluded by the Break In Service rules, the following years of Vesting
Service shall be excluded in determining a Participant's vested interest (elect a or check
and complete b):
(a) � No Vesting Service shall be excluded.
(b) [ ] The following years of Vesting Service shall be excluded (elect any that are
applicable):
(1) [ ] years of Vesting Service before the year in which the Participant
attains age 18.
(2) (] years of Vesting Service before the Effective Date of the Plan or a
predecessor plan.
6. SJ:17) ELAPSED TIME (Article III)
Check here if the elapsed time provisions of Article III are to apply. If checked,
Sections 3 and 4 above are not applicable.,
NORMAL RETIREMENT AGE (Section 2.33): A Participant's Normal Retirement Age will
be the day he (elect a or b):
t l (a) [ ] attains age _ (not more than 65).
�I (b) [ ] attains age (not more than 65) or the (not more than 10)
anniversary of his participation commencement date, if later. Participation
commencement date is the first day of the Plan Year in which the Participant
began participating in the Plan.
Money Purchase PO2100-2
TRA'86 Version (Government) 11 -
8. EARLY RETIREMENT AGE (Section 11.4): (elect a or b):
(a) [ ] A Participant who has attained age _ and who is credited with — years
of Vesting Service may retire on his Early Retirement Date. A Participant's
Account (elect (1) or (2)):
(1) [ ] shall, if not previously 100% vested, be 100% vested solely upon
attainment of his Early Retirement Age.
(2) [ ] shall be subject to the vesting schedule in Exhibit 5.
(b) Early retirement is not provided.
9. COMMENCEMENT OF BENEFITS - TERMINATION OF EMPLOYMENT (Section 11.8):
A Participant who terminates his employment with his Participating Employer may receive
a distribution of his Accrued Benefit (elect a, b or c):
(a) within a reasonable time after termination of employment.
(b) [ ] on or after the first Anniversary Date following termination of employment.
(c) [ ] upon attainment of the Participant's Normal Retirement Date.
Money Purchase PO2100-2
TRA'86 Version (Government) - 12 -
10. OPTIONAL FORMS OF BENEFITS (Section 10.23) In addition to the lump sum normal
form of benefit, and, if required to be provided under the Plan, a Qualified Joint and
Survivor Annuity, the following option forms of benefits shall be provided (elect any that
are applicable):
(a)
Qj
Straight Life Annuity
(b)
Q]
Life Annuity - Ten Years Certain
(c)
Joint and Survivor Annuity
(d)
d}
Ten Year Certain Fixed Payments
(a)
c]
Life Annuity - Twenty Year Certain
(0
[ ]
Other:
NOTE: [ ] Check here if a lump sum normal form of benefit will be the only form
of benefit offered under this Plan ((a) through (g) must not be
completed), and the Qualified Pre -Retirement Survivor Annuity and
Qualified Joint and Survivor Annuity provisions will not be applicable
(Section 10.20).
NOTE: If this amendment and restatement of a prior plan, the "other" line may be
used to preserve an optional form of benefit not currently offered by
Nationwide In addition, an additional optional form of benefit may be
specified in the "other" line above only if such form of benefit does not
discriminate in favor of any Highly Compensated Employee.
11. CASH OUT DISTRIBUTION (Section 10.7) Upon termination of service, a Participant's
vested Accrued Benefit of $3,500 or less will (elect a or b):
(a) [ ] be immediately distributed to the Participant.
(b) f not be distributed to the Participant without his consent.
12. LOANS TO PARTICIPANTS (Section 11.14) Loans to Participants are (elect a or b):
(a) [ ] permitted and (complete one of the following boxes) [ ] are considered a
general investment of the Trust Fund [ ] are considered an investment of the
Participant's Account.
(b) A not permitted.
Money Purchase P02100-2
TRA'86 Version (Government) - 13 -
EXHIBIT 6 - PLAN ADMINISTRATOR
PLAN ADMINISTRATOR (Section 12.1): The Plan Administrator shall be (elect a, b, c,
or d):
(a) � the Employer.
(b) [ ] the Trustee
(c) [ ] a committee consisting of at least three persons appointed from time to time
by the Board to serve without compensation at the pleasure of the Board.
Any person appointed a member of such committee shall signify his
acceptance of administrative responsibility by filing written acceptance with
the Board and with the committee. Any member of the committee may
resign by delivering his written resignation to the Board and the Secretary
of the committee, and such resignation shall become effective on some
specified future date not less than 30 days after receipt of such resignation
by the Board.
The committee may authorize one or more of its number to execute or
deliver any instrument or make any payment in its behalf.
A majority of the members of the committee at the time in office shall
constitute a quorum for the transaction of business. All resolutions or other
matters coming before the committee may be acted upon by the members
of the committee present at any meeting or without a meeting by an
instrument in writing signed by a majority of the members of the committee.
In the event any such vote ends in a deadlock, the Board shall cast the
deciding vote.
(d) [ j (Specify by name, title, or other description):
`)
Money Purchase PO2100-2
TRA'86 Version (Government) - 14 -
EXHIBIT 7 - LIMITATIONS ON ALLOCATIONS
1. OTHER QUALIFIED PLANS (Sections 8.3 and 8.4) If the Participating Employer
maintains or ever maintained another qualified plan in which any Participant in this Plan
is (or was) a Participant or could become a Participating Employer must also complete this
Section if it maintains a welfare benefit fund, as defined in Section 419(e) of the Code, or
an individual medical account, as defined in Section 415(I)(2) of the Code, under which
amounts are treated as annual additions with respect to any Participant in this Plan
(complete a and b):
(a) If the Participant is covered under another qualified defined contribution plan
maintained by the Employer, other than a Master or Prototype Plan (complete 1,
2, or 3):
(1) [ ] The provisions of Section 8.2 will apply, as if the other plan was a
Master or Prototype plan.
(2) [ ] (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.)
(3) [�} ` not applicable.
(b) If the Participant is or ever has been a Participant in a defined benefit plan
maintained by the Employer (complete 1, 2, or 3):
(1) [ ] In any Limitation Year, the Annual Additions credited to the participant
under this Plan may not cause the sum of the Defined Benefit Plan
Fraction and the Defined Contribution Plan Fraction to exceed 1.0.
If the Participating Employer contributions that would otherwise be
allocated to the Participant's Account during such year would cause
the 1.0 limitation to be exceeded, the allocation will be reduced so
that the sum of the fractions equals 1.0. Any contributions not
allocated because of the preceding sentence will be allocated to the
remaining Participants under the allocation formula under the plan.
If the 1.0 limitation is exceeded because of an Excess Amount, such
Excess Amount will be reduced in accordance with Section 7.1(d).
(2) [ ] (Provide the method under which the plan involved will satisfy the 1.0
limitation in a manner that precludes Employer discretion.)
(3) -K-j not applicable
Money Purchase PO2100-2
TRA'86 Version (Government) 15 -
EXECUTION
The Employer hereby adopts this Plan and Trust, subject only to acceptance by the Trustee(s)
and Nationwide Life Insurance Company. The Employer, by executing this document,
acknowledges that it has read this Plan and Trust, that it has consulted legal counsel to the
extent deemed necessary, and that it accepts full responsibility for its participation hereunder,
and that it releases Nationwide from any liability resulting from adoption of the Plan and Trust.
IMPORTANT NOTICE
In order to obtain reliance with respect to plan qualification, the Employer must submit
this Adoption Agreement with all provisions appropriately and fully completed and the
corresponding Basic Plan Document numbered PO 2100 to the appropriate IRS Key
District office with an Application for a Determination Letter Request
This Adoption Agreement may be used only in conjunction with the Government Retirement Plan
and Trust Basic Plan Document numbered PO 2100.
Date:
Date:
Date:
EMPLOYER
CITY OF EDGEWATER
(Name of ployerZ
By: L� >�
Rafidy Allman Mavor
(Signature and Title)
TRUSTEE(S)
J. Kevin Grace
(All Trustees must sign)
PARTICIPATING EMPLOYER(S)
Name of Employer:
Signature(s)
NATIONWIDE LIFE INSURANCE COMPANY
By:
Home Office Signature Required
Money Purchase P02100-2
TRA'86 Version (Government) - 16 -
AMENDMENT
Attached to and made part of
MONEY PURCHASE (401a) GOVERNMENT RETIREMENT PLAN
(name of plan)
Established by
CITY OF EDGEWATER
(name of entity)
It is hereby understood and agreed that said Plan is amended by the addition of the following
language:
"Uniformed Services
Notwithstanding any provision of this plan to the contrary, contributions, benefits
and service credit with respect to qualified military service will be provided in
accordance with Section 414(u) of the Internal Revenue Code.
Loan repayments will be suspended under this plan as permitted under the Code
Section 414(u) (4)."
Nothing herein contained shall be held to alter, vary or affect any of the terms of said Plan other
than stated above. This amendment shall be effective as of December 12, 1994, or if later, the
first day of the plan's first plan year.
CITY OF EDGEWATER
(name of entity)
Dated: 7 '
. R in Grace, ustee
E Bi
R ndy .a. Allman
Mayor