HomeMy WebLinkAboutReso 2017-071 - PARS RESOLUTION NO. 2017-071
FIRST AMENDMENT TO THE CITY OF REDDING
AMENDED AND RESTATED PARS RETIREMENT
ENHANCEMENT PLAN
WHEREAS, the City of Redding (the "Employer") has previously adopted the
City of Redding PARS Retirement Enhancement Plan, amended and restated effective July
1, 2011 (the "Plan"); and
WHEREAS, it has been determined to be in the best interest of the Employer and
the Plan to amend the Plan to add a mandatory employee contribution for all employees
participating under Tier I of the Plan; and
WHEREAS, the Employer has the right to amend said Plan in accordance with
Section 5.3 of the Plan;
NOW, THEREFORE, the Plan is hereby amended effective August 2, 2017, as
follows:
1. A new Section 2.8, Withdrawal Benefit, is hereby added to Article II, Benefits,
to read:
2.8 Withdrawal Benefit
Employees eligible to participate in the Plan pursuant to Section 1.1, Tier I,
who terminate employment or are terminated whether voluntarily, involuntarily, by
death, disability or in any other manner prior to satisfying the eligibility
requirements under Section 1.1, Tier I, shall receive one hundred percent (100%) of
his or her Employee contributions made to the Plan plus three percent (3%) interest
per annum.
2. A new Section 3.5, Vesting in Employee Contribution Account, is hereby
added to read:
3.5 Vesting in Employee Contribution Account
Each Employee shall be one hundred percent (100%) Vested in his or her
Employee Contribution Account at all times. An Employee who terminates, or is
terminated from employment with the Employer, whether voluntarily, involuntarily,
by death, disability or in any other manner prior to satisfying all of the requirements
of Section 1.1, Tier I, shall receive one hundred percent (100%) of the amounts J
credited to his or her Employee Contribution Account, plus three percent (3%)
interest per annum.
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3. The following definition is added to Article VII of the Plan:
"Employee Contribution Account" means the account by that name established
pursuant to Section 8.1 hereof.
4. A new Article VIII, Contributions, is hereby added to the Plan as follows:
Article VIII - Contributions
8.1 Amount of Employee Contributions
Each Employee eligible to participate in the Plan under Section 1.1, Tier
I, shall contribute a percentage equal to two percent (2.00%) of his or her Compensation
to the Plan each year at such times and in the manner established by the Employer.
Such Employee contributions shall be considered pre-tax contributions in accordance
with Section 8.3. The mandatory Employee contributions required under this Section
8.1 are subject to change at the discretion of the Employer.
8.2 Amount of Employer Contributions
The Employer shall contribute an amount determined by an actuarial study
performed at least every two (2) years as long as this Plan exists.
8.3 Pick Up of Mandatory Contributions
In accordance with Section 414(h) of the Code, the mandatory Employee
contributions required under Section 8.1 shall be picked up by the Employer.
I HEREBY CERTIFY that the foregoing resolution was introduced, read and
adopted at a special meeting of the City Council on the 2nd day of August, 2017, by the
following vote:
AYES: COUNCIL MEMBERS: McElvain, Schreder, Sullivan, Winter, & Weaver
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
BRENT WEAVER, Mayor
ATTEST: FORM APPROVED:
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PAMELA MIZE, City lerk BARRY E. DeWALT, City Attorney