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HomeMy WebLinkAbout78 of 1976 - A resolution approving and establishing Deferred Compensation Plan for certain designated employees Resolution No. 78 'i By Ted L.Wilson, Mayor COMMISSIONER Approving and establishing Deferred Gompensation Plan for certain desig- nated employees and approving and authorizing execution of agreement for; I administration thereof. { Presented to the Qoerd of Commissioners AND PASSED OCT2119766 • • Plazetaxx ti is II { I • Jr ., I rrcerthvr 22 1977 Mr. Ray L. Montgomery Assistant City Attorney 101 City and County Ong Alt Lake City, Utah Dear sir: The Board of City Commiasionsrs, at its meeting may. approved agreement between Salt Lake City Corporation and Galbraith iz Green. Inc. which provides for .Galbraith & Green to act as Plea Administrator for the City's Deferred « { - Plan. The letter and acknowledgment regarding this plan should be sent to ell those who originally applied for the plan. None should be showed to enter the plan January let u_n ere their ailed mend is signed, actor/zed and returned to thin City Auditor prior to January 1$, 19T9. The agreement was signed by the Mayor aid City Recorder in behalf et of the City. Upon ezetuttoa of the same by Galbraith i Green. the City's copy is to be returned to this office. Yours truly, • City Recorder ma CC: Auditor Treasurer Finanse Galbraith 6 Green Fibs Treasurer Report b --Resolution 7$-T6 October 18, 1977 Mr. Roger F. Cutler City Attorney 101 City and County Building Salt Lake City, Utah Dear Sir: The Board of City Commissioners, at its meeting today, approved the following motion of Commissioner Jess A. Agraz: I move that the City Attorney be directed to prepare a letter to all those employees who signed up for the Deferred Compendation Plan In October of 1976, explaining the delay in implementing the program and outlining the changes in the program with ee request that each such employee re- evaluate his previous decision to join said plan or to modify his investmnt in any way he desires or that he be permitted to withdrr.w from the plan. I further move that the City Attorney submit his recommendations to tie City Commisd on. Yours truly, City Recorder °d ms CC: Comm. Agraz Auditor Treasurer Personnel Galbraith & Green Files _.Reaolution78/76 Personnel 142/76 Treasurer 9/77 Special File/408-76 . r ROLL CALL VOTING Aye Nay Salt Lake City,Utah, October 21 ,1976 Mr.Chairman 1 move that the Resolution be adopted. Agra it . C . ...44]:_____ Phillips RESOLUTION4-47\ Result � ry' \ // 1\. ,/1 APPROVING AND ESTABLISHING DEFERRED COMPENSATION PLAN FOR CERAINDESIGNATEDEMPLOYEES ,': AND APPROVING AND AUTHORIZING EXECUTION OF AGREE— yJ� ,,' MENT FOR ADMINISTRATION THEREOF. �1 '' WHEREOF, Salt Lake City Corporation desires to establish a deferred Y compensation plan for the benefit of certain of its employees; and WHEREAS, a deferred compensation plan has been presented to Salt Lake City Corporation and said Corporation desires to approve and establish said plan; and WHEREAS, Galbraith & Green, Inc., has represented that it possesses the knowledge and experience to provide such administrative services; and NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF SALT LAKE CITY, as follows: 1. That certain document entitled "Salt Lake City Corporation Deferred Compensation Plan,: a copy of which is attached and another placed on file in the Salt Lake City Recorder's office to which copy reference is hereby made for full particulars, is hereby approved and said Plan is hereby established and shall become established immediately. 2. That Galbraith & Green, Inc., is hereby authorized as admini- strator of said Deferred Compensation Plan and obtain Internal Revenue Service approval thereof. If the Plan is so approved, the City Attorney is directed to prepare an appropriate agreement for execution between Galbraith & Green, Inc., setting forth the terms and conditions of their understanding. 3. If said Plan is approved by the Internal Revenue Service, an eligible person with respect to participation in the initial plan year may become a participant, within a reasonable time after the plan -2- becomes effective by agreeing to defer compensation not yet earned, and the Mayor is hereby authorized to execute an appropriate Partici- pation Agreement on behalf of the City, with each employee electing to participate in said Deferred Compensation Plan, on a form approved by the City Attorney. Passed by the Board of Commissioners of Salt Lake City, Utah, this 21st day of October, 1976. MAYOR CITY RECORDER DEFERRED COMPENSATION PLAN • PARTICIPATION AGREEMENT C, THIS AGREEMENT, made by and between Salt Lake City, the employer and the employee, specifies: WHEREAS, the Plan provides that any employee subject to the limitations established in the Plan of the Employer, may elect to participate in the Plan upon executing and filing a Participation Agreement with the Employer, and WHEREAS, the Employee desires to participate in the Plan. NOW THEREFORE, the Employer and the Employee agree as follows: 1. The Employer has provided the Employee with a copy of the Plan. 2. The Employee hereby elects to become participant in the Plan and agrees to defer all rights to receive compensation to the extent of $ per year. 3. The Employee agrees that any rights to the compensation deferred shall be governed by the terms and conditions of the Plan. 4. Pursuant to Section 8 of the Plan, the employee elects to defer any additional amounts made available by the employer. 5. The Employee designates the following investment preference(s) and the amounts he would like to be invested in each: a. ($) Preference b. ($) Preference c. ($) Preference d. ($) Preference 5. The Participating Employee designated the following persons as his beneficiaries to receive, in the event of his death, any benefits to which he is entitled under the Plan. Address Name of Beneficiary Relationship of Beneficiary Primary a. Contingent b. Contingent c. Contingent d. If more than one person is named as a Beneficiary, any payments to which they may be entitled shall be paid as follows: (Choose One) Wholly, to the designated person under 5a. if living, otherwise, in equal shares to each of the designated survivors, or survivor, as shall then be living, or In equal shares, to such of the designated persons, survivors, or survivor, as shall then be living. I hereby reserve the right to change or revoke this Beneficiary without notice to any Beneficiary. 6. I have received a copy of the Deferred Compensation Plan and agree to its terms and conditions. Dated: , 19 . EMPLOYER PARTICIPATING EMPLOYEE By: TITLE: DEFERRED COMPENSATION IRREVOCABLE ELECTION FORM I irrevocably elect the following payout options as provided in Section 4(f) of the Plan. 1. Retirement 2. Termination (a) Lump Sum % (a) Lump Sum %. Postpone to Age 70. Postpone to Age 50. Postpone to Age 60. (b) Installments payable. Postpone to Age 65. over years %. (not to exceed ten (10) years) (b) Installments payable Postpone to Age 70. over years %. (not to exceed ten (10) years) (c) Life Annuity %. Postpone to Age 50. (Choose one UrT577 Postpone to Age 60. 120 Months Certain & Life. Postpone to Age 65. Joint and Survivor. Postpone to Age 70. 3. Death 4. Disability- (a) Lump Sum % (a) Lump Sum %. (b) Installments payable (b) Installments payable over years %. over years %? (not to exceed ten (10) years) (not to exceed ten (10) years) (c) Life Annuity %. (c) Life Annuity %. (Choose One Only (Choose One only 120 Months Certain & Life. 120 Months Certain & Life. Joint and Survivor. Joint and Survivor. Benefits under Sections 1, 2, 3, and 4 above shall be paid in 30 days after Retirement, Termination or Death if a lump sum is elected. If an installment/ annuity option is elected payment of benefits will commence on the first day of the second month following the event causing the payment. Date Witness Signature Employees Signature SALT LAKE CITY DEFERRED COMPENSATION PLAN SECTION 1. NAME: The name of the Plan is the Salt Lake City Deferred Compensation Plan (hereinafter referred to as the Plan). SECTION 2. PURPOSE: The primary purpose of the Plan is to attract and hold personnel by permitting them to enter into agreements with Salt Lake City, which will provide for deferral of payment or a portion of their future com- pensation until death, disability, retirement, term- ination of employment, or other event as provided herein. SECTION 3. DEFINITIONS: For the purpose of this Plan, certain words or phrases used herein will_have the following meanings: 3.1 "Employer" shall be Salt Lake City, Utah. 3.2 "Employee" shall mean officers and employees of Salt Lake City. 3.3 "Participant" shall mean any employee who fulfills the requirements of enrollment into this Plan. 3.4 "Participation Agreement" shall mean the agreement executed and filed by an employee with the employer pursuant to Section 4, in which the employee elects to become a participant in the Plan. 3.5 "Compensation" shall mean the total of all amounts not yet earned which would be paid by the employer to or for the benefit of an employee (if he were not a participant in the Plan) for actual services for the period that he is a participant. 3.6 "Employment Period" means a period from January 1 through December 31 of the same year, except that the initial plan year of an employee hired in mid- year shall be the period beginning with the date of employment and ending on December 31. 3.7 "Disability" means a physical or mental condition which makes an employee incapable of engaging in any occupation for compensation, profit or gain and which requires the treatment of a physician. 3.8 "Investment Preference" means the type of financial plan in which the employer may or may not invest deferred compensation amounts; e.g., annuities, mutual funds and/or life insurance. 3.9 "Retirement" shall mean a retirement from service with the employer. Retirement is further defined as: (a) Normal - age 65 (b) Early - prior to age 65, provided the partici- pant has attained age 50, or experienced total and permanent disability at any age. (c) Late - after age 65, except that when any participant is placed on extended service after attaining age 65, the amount of compensation deferred by the participant under this Plan will be continued for the period of such extended service. SECTION 4. PARTICIPATION IN THE PLAN: 4.1 Eligibility: Any employee including elected officials shall be eligible to participate in the Plan. 4.2 Enrollment in the Plan: (a) An eligible person, with respect to parti- cipation in the initial year in the Plan, may become a Participant within 60 days after the Plan becomes effective, by agreeing to defer compensation not yet earned. (b) After the initial year of the Plan, an eligible person may elect to become a participant of the Plan and defer payment of compensation not yet earned by executing a written Participation Agreement and filing it with the employer no later than the day before the beginning of any employment period or in the case of a new employee, not later than 60 days after com- mencement of employment. (c) A Participation Agreement shall be effective for the first employment period following its execution and filing, except when it is executed and filed by a new employee pursuant to Section 4.2 (b), in which case it shall be effective for that part of the employment period following its execution and filing. In either situation, the Participation Agreement shall continue from period to period and remain in full force and effect unless terminated as provided in Section 4.2(d) below. (d) A participant may terminate his participation in the Plan and thereby terminate further deferral of his compensation by filing with the employer written notice of termination on a form acceptable to the employer, at least 30 days prior to effective date of termination. Once terminated, a former participant cannot rejoin the Plan during the employment period in which termination occurred; however, a former participant may elect to again participate in subsequent employment periods. No amounts shall be payable to an employee upon terminating his participation in the Plan unless otherwise due pursuant to Section 7. (e) A participant may request, pursuant to Section 6, one or more Investment Preferences, as defined, provided that the amount deferred for each equals or exceeds the minimum of not less than $10 per month. (f) At the time a person executes any Joinder Agree- ment under the Plan, he may irrevocably elect a method of payment of benefits other than that provided in the Plan by executing an Election in the form prescribed by the Committee. SECTION 5. DEFERRAL OF COMPENSATION: During each employment period in which the employee is a participant in the Plan, the employer shall defer payment of such compensation as is specified by the employee in the Participation Agreement which has been executed and filed with the employer. SECTION 6. ADMINISTRATION OF THE PLAN: 6.1 The Plan shall be administered by an Advisory Committee which shall have the sole authority for the operation of the Plan in according with its terms, and shall rule on all questions arising out of the administration, interpretation and application of the Plan, which determinations shall be conclusive and binding on all participants. Members of the Advisory Committee may participate but no member of the Advisory Committee shall be entitled to make decisions solely with respect to his own participation. 6.2 On executing the Participation Agreement, the employee may request his Investment Preference prior to deferring compensation not yet earned. The employer may, or may not, according to his own judgment, invest amounts of deferred compensation in mutual fund shares, life insurance and/or fixed/variable annuity contracts with an insurance company. Nothing in this provision requires investment in and nothing restricts the employer to the enumerated investment preferences. 6.3 The employer may, but is not required to, invest deferred compensation amounts in the Investment • Preferences provided in the Plan, or in any investments. All amounts of deferred compensation, whether or not invested by the employer, shall at all. times be and remain a general unrestricted asset of the employer, subject to the claims of its general creditors, and will, at all times, be available for the employer's use for whatever purpose desired. Any and all dividends, capital gains distributions, interest and other income payable on any of the employer's investments of deferred compensation also shall be a general unrestricted asset under the sole control of the employer. 6.4 Neither this Plan nor any Participation Agreement shall be deemed to create a trust or custodial account on behalf of, or for, the benefit of any participant of the Plan or his beneficiaries shall have, by reason of the Plan or Participation Agreement, any secured or preferred interest in or to any assets of the employer. SECTION 7. BENEFITS UNDER THE PLAN: 7.1 Deferred Compensation Payment under the Plan shall be paid to a Participant on the happ ning of any of the following events: (a) Normal, Postponed or Early Retirement; (b) Total and Permanent Disability; (c) Termination of Employment; or (d) Death of a Participant before commencement of payments under any of (a) through (c) above. 7.2 Unless an election specifying a different method of payment shall be in effect and subject to the provi- sions hereof, the employer agrees to pay Deferred Compensation payments as follows: (a) RETIREMENT - In the event of Normal, Postponed, or Early Retirement, to the Participant so qualifying, for 120 consecutive months and for his remaining lifetime thereafter, commencing on the first day of the second month following such retirement. (b) DISABILITY - In the event of Total and Permanent Disability, to the Participant so qualifying for 120 consecutive months, commencing the first day of the second month following such Disability; provided that nothing herein shall preclude the earlier payment of Deferred Compensation Payments upon application of the Disabled Particpant pursuant to the provisions of Article 7.6 on Withdrawals if the conditions of financial hardship set forth therein shall be satisfied by such Disabled Participant. (c) TERMINATION - In the event of Termination or • Employment, to the participant so qualifying for 60 consecutive months, commencing the first day of the second month following such termination; pro- vided, however, that, noMthstanding the provi- sions hereof or of any election made by the Parti- cipant under Article 4(f). (d) DEAIII - Subject to the provisions hereof, the employer agrees to pay Death Benefits to the Participant's designated beneficiary, or the Participant's estate, in an amount equal to the actuarial equivalent of the Deferred Compensation Payments; for 60 consecutive months, commencing on the first day of the second month following the Participant's death; provided, that notwithstanding the provisions hereof or of any election made by the Participant under Article 4(f). Payment shall be made in a lump sum where the amount of the monthly payment so calculated under 7.2(a), (b), (c), or (d) would not exceed $25.00. Such payment will be made in 30 days following the event causing a distri- bution. • 7.3 If a participant has qualified to receive Deferred Compensation payments and dies before receipt of such payments, the employer agrees to continue to make pay- ments per the payout option selected to the participants designated beneficiary or estate, as applicable. 7.4 A participant may designate one or more beneficiaries, may name contingent beneficiaries and has the right to. change beneficiaries. ' 7.5 In the event a participant's beneficiaries dies before all benefit payments have been paid to such beneficiaries then the commuted value (at a rate of interest decided upon by the employer) of such monthly benefits will be paid in a lump sum by the employer to the estate of the_ last surviving beneficiary. If no such designation is in effect upon death, a participant's beneficiary shall be appointed within six (6) months after the participant's death, the employer shall direct said benefits to be paid to the beneficiary or beneficiaries designated in his last will, or if there be no will, then to the heirs at law of the participant. • 7.6 WITHDRAWALS FOR FINANCIAL CATASTROPHE - In the event of a financial catastrophe caused by an event beyond the control of a participant where the withdrawal of deferred compen- sation funds would be necessary to prevent great hardship to the participant and the amount of withdrawal requested by the participant is only the amount necessary to meet that financial catastrophe, which is not reimbursed by insurance, a participant may apply to the employer for withdrawal of such amounts from the Plan prior to retirement or to termi- nation of participant's employment. SECTION 8. EMPLOYER PARTICIPATION: Notwithstanding any other provisions of the Plan, the employer may make additional deposits into • the Deferred compensation plan as additional compensation for the services rendered by the employee to the employer durirTg an employment period, provided the employee has elected to have such additional compensation deferred pursuant to this Plan, prior to the employment period in which the compensation would be earned. SECTION 9. NON-ASSIGNABILITY: To the fullest extend permitted by law, the interest of a participant in the obligations of the employer, established by the Plan, shall not be assignable in whole, or in part, directly or by operation of low or otherwise, in any manner and no right of interest of a participant in the employer's obligation shall be liable for, or subject to, any obligation or liability of such participant. SECTION 10. MISCELLANEOUS: 10.1 STATUS OF PARTICPANTS - Neither the establishment of the Plan, nor the modification thereof, nor the payment of any benefits, shall be construed as giving to any participant or other person any legal or equitable right against the employer except as herein provided; and, in no event, shall the terms of employment of any employee or partici- pant be modified or in any way affected hereby. 10.2 CONDITION OF PLAN - It is a condition of this Plan, and employees participating herein, that they expressly agree to look solely to the general assets of the employer for any benefits to which they may be entitled under the Plan. 10..3 GOVERNING LAW - The Plan shall be construed, administered and enforced according to the Laws of the State of Utah. 10.4 LEAVE OF ABSENCE (a) If a particpant is on an approved leave of absence from the employer with compensation, or on an approved leave of absence without compensation, for a period of not more than six months, participation in this Plan will continue. (b) If a participant is on an approved leave of absence without compensation and such leave of absence continuef for more than six months, said participant will be deemed to have terminated participation in the Plan as of the end of such six-month period. Such termination of participation will not cause a distribution of bene- fits. Upon return from such leave of absence, the participant's full compensation on a non-deferral basis will be thereupon restored. SECTION 11. AMENDMENT AND TERMINATION: 11.1 The employer may from time to time modify, amend, or terminate the Plan in whole, or in part (including retroactive amendments), or cease deferring compensation be delivering to each participant a written copy of such modification, amendment, or termination provided, however, the employer shall not have the fight to reduce or affect the value of any participant's right accrued under the Plan prior to such modification, amendment, termination, or cessation, additionally any termination would apply> to all participants. 11.2 In the event of the termination of the Plan by the employer under Section 11.1, the participants in the Plan will be deemed to have withdrawn from the Plan as of the date of such termination, each participant's full compensation on a non-deferred basis will be restored and the employer agrees to pay such participants the amount of money determined as if the participants had terminated their employment, as provided in the Plan and any election made by the participants, pursuant to Section 7.4. SECTION 12. EMPLOYER RESPONSIBILITY: The employer may, but is not required to, invest deferred compensation held pursuant to agreements between participants and the employer in accordance with the requests made by each participant at the time of enrollment or change in enrollment. The employer retains the right to approve or disapprove requests for specific investment vehicles. Any investment action by the employer, or approving of any investment vehicle, shall not be considered to be an endorsement or guarantee of any investment, nor shall it be considered to attest to the financial soundness of the suitability of any investment vehicle for the purpose of meeting future obligations as provided in Section 7 of this Plan. SECTION 13. TRANSFERS: Should a participant transfer to a successor employer and request transfer of ownership of deferred compensation amounts to said employer, a ruling on the constructive receipt of such amounts must be requested from the Internal Revenue Service. This ruling will be requested at the time of the contemplated transfer.