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HomeMy WebLinkAboutRES 2007-10 - Board TRUCKEE i Resolution No. 2007 - 10 Establishing and Defining a Money Purchase Plan WHEREAS, the District 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 District desires that its money purchase retirement plan be administered by the ICMA Retirement Corporation and that the funds held in,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 that the District hereby establishes a money purchase retirement plan in the form of: • The ICMA Retirement Corporation Governmental Money Purchase&Trust, pursuant to the specific provisions of the Adoption Agreement(executed copy attached hereto). The Plan shall be maintained for the exclusive benefit of eligible employees and their beneficiaries. BE IT FURTHER RESOLVED that the District hereby executes the Declaration of Trust of the ICMA Retirement Trust,and attached hereto, intending this execution to be operative with respect to any retirement or deferred compensation plan subsequently established by the District, if the assets of the plan are to be invested in the ICMA Retirement Trust. BE IT FURTHER RESOLVED that the District hereby agrees to serve as trustee under the Plan and to invest funds held under the Plan in the ICMA Retirement Trust. BE IT FURTHER RESOLVED that the Human Resources Administrator of the District shall be the coordinator for the Plan; shall receive reports, notices, etc., from the ICMA Retirement Corporation or the ICMA Retirement Trust; shall cast, on behalf of the District, any required votes under the ICMA Retirement Trust; may delegate any administrative duties relating to the Plan to appropriate departments. BE IT FURTHER RESOLVED that the District hereby authorizes the Human Resources Administrator to execute all necessary agreements with the ICMA Retirement Corporation incidental to the administration of the Plan. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the 18th day of April 2007, by the following roll call vote: AYES: Directors Aguera, Hemig, Sutton and Thomason NOES:None ABSENT: Director Taylor TRUCKEE DONNER PUBLIC UTILITY DISTRICT By iI . Tim F. Taylor, Presi t, Board of Directors ATTEST: Peter L. Holzmeister, District Clerk ICMA RETIREMENT CORPORATION GOVERNMENTAL MONEY PURCHASE PLAN & TRUST ADOPTION AGREEMENT PLAN NUMBER 10- 7629 The Employer hereby establishes a Money Purchase Plan and Trust to be known as Truckee Donner Public Utility District 401(a) Plan (the "Plan") in the form of the ICMA RC Governmental Money Purchase Plan and Trust. This Plan is an amendment and restatement of an existing defined contribution money purchase plan. x Yes No If yes, please specify the name of the defined contribution money purchase plan which this Plan hereby amends and restates: Truckee Donner Public Utility District 401(a) Plan I. Employer: Truckee Donner Public Utility District 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: 01/01/2007 III. Plan Year will mean: (x) The twelve (12) consecutive month period which coincides with the limitation year. (See Section 5.03(g) of the Plan.) ( ) The twelve (12) consecutive month period commencing on and each anniversary thereof. IV. Normal Retirement Age shall be age 60 (not to exceed age 65). 1 V. ELIGIBILITY REQUIREMENTS: 1. The following group or groups of Employees are eligible to participate in the Plan: All Employees x All Full-Time Employees Salaried Employees Non-union Employees Management Employees Public Safety Employees General Employees Other (specify below) 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 NIA (not to exceed age 21. Write N/A if no minimum age is declared.) VI. CONTRIBUTION PROVISIONS — See Attachment 1. The Employer shall contribute as follows (choose one): ( ) Fixed Employer Contributions With Or Without Mandatory Participant Contributions. The Employer shall contribute on behalf of each Participant % of Earnings or $ for the Plan Year (subject to the limitations of Article V of the Plan). A Participant is required to contribute (subject to the limitations of Article V of the Plan) (i} % of Earnings, or (iii) a whole percentage of Earnings, as designated by the Employee in accordance with guidelines and procedures established by the Employer 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. The Employer hereby elects to "pick up" the Mandatory/Required Participant Contribution. Yes No [Note to Employer: Neither an IRS advisory letter 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. Ruls. 81-35 and 81-36, 1981-1 C.B. 255, and 87-10, 1987-1 C.B. 136. 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; (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; and (3) the required specification of designated employee contributions must be completed before the period to which such contributions relate.) ( ) 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 Article V 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 contributions, 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. ( } 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 Article V of the Plan): % of the 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 more or less. 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 No 3. Employer contributions and Participant contributions shall be contributed to the Trust in accordance with the following payment schedule: VI I. EARNINGS Earnings, as defined under Section 2.09 of the Plan, shall include: (a) Overtime x Yes No (b) Bonuses x Yes No Vill. 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 Sections 5.02 of the Plan). 4 1. 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. ( ) 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: January 1 — December 31 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 Vesting Zero 100 % One Two % Three % Four % Five % Six Seven Eight % Nine % Ten % X. Loans are permitted under the Plan, as provided in Article XIII: x Yes No XI. 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. -� XI I. 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. 5 XIII. The Employer hereby appoints the ICMA RC as the Plan Administrator pursuant to the terms and conditions of the ICMA RC 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 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. In Witness Whereof, the Employer hereby causes this Agreement to be executed on this day of , 2006. EMPLOYER ICMA RC By: By: Title: Title: Attest: Attest: 6 1GLCiPRIM`CLIENTS\11070\01'TvIPPAA4 DOC ATTACHMENT TO THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT 401(A) PLAN GOVERNMENTAL MONEY PURCHASE PLAN AND TRUST ADOPTION AGREEMENT Section VI.1. Fixed Employer Contributions With Or Without Mandatory Participant Contributions. A. The Employer shall contribute on behalf of each Participant Up to 3% of Earnings for the Plan Year(subject to the limitations of Article V of the Plan). Mandatory Participant Contributions are required El are not required to be eligible for this Employer Contribution. B. Notwithstanding Section 4.03 of the Plan, each Employee eligible to participate in the Plan shall be given the opportunity to irrevocably elect to participate in the Mandatory Participant Contribution portion of the Plan by electing to contribute 1% -20% of the Employee's Earnings to the Plan for each Plan Year(subject to the limitations of Article V of the Plan. The Employer shall "pick-up" this contribution in accordance with Code section 414(h)(2). These contributions shall be accounted for in the Participant Contribution Account, and shall be nonforfeitable by the Participant at all times. Newly eligible employees shall be provided an election window of 60 days from the date of initial eligibility during which they may make the election to participate in the Mandatory Participant Contribution portion of the Plan. Participation in the Mandatory Participant Contribution portion of the Plan shall begin the first of the month following the end of the election window. If the employee does not make an election in the initial year of eligibility, the election to participate in the Mandatory Participant Contribution portion of the Plan ❑o may ❑ may not be made in a later year. If a later election is allowed, an annual election window of 60 days shall be provided during which the election may be made. The election window shall run from November lst to December 30th . Participation in the Mandatory Participant Contribution portion of the Plan shall begin the first of the year following the year of the election. An Employee's election is irrevocable and shall remain in force until the Employee terminates employment or ceases to be eligible to participate in the Plan. In the event of re-employment to an eligible position, the Employee's original election will resume. In no event does the Employee have the option of receiving the pick-up contribution amount directly. Section VI.2. Each Participant may make a voluntary (unmatched), after-tax contri- bution, subject to the limitations of Section 4.05 and Article V of the Plan. Yes x No Section VI.3 . Employer contributions and Participant contributions shall be contributed to the Trust in accordance with the following payment schedule: Re-weekly Eligible Participant is defined as: x All Participants, Participants within_(insert number) years of Normal Retirement Age, or Other: (define class of Participants). Employer Signature Date Title: Attest: Accepted: ICMA Retirement Corporation By: Title: Attest: