HomeMy WebLinkAboutReso 99-020 - Adopting a Declaration of Trust for Assets of the City Of Redding Deferred Comp Plan Effective 01-01-99 � r ' � • •
� - . RESOLUTION 99- Z.c�
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A RESOLUTION OF THE CITY OF COUNCIL OF THE CITY
OF REDDING ADOPTING A DECLARATION OF TRUST
FOR ASSETS OF THE CITY OF REDDING DEFERRED
COMPENSATION PLAN EFFECTIVE JANUARY 1, 1999.
WHEREAS,the City ofRedding maintains the City ofRedding Deferred Compensation Plan
for certain employees, which was established pursuant to Section 457 of the United States Internal
Revenue Code; and
WHER�AS, the federal Small Business Job Protection Act of 1996 required that the assets
of section 457 deferred compensation plans be held in trust, as defined in the Code, for the exclusive
benefit of plan participants and their beneficiaries; and
WHEREAS,under the terms of the Small Business Job Protection Act of 1996, Section 457
plans in existence on the effective date of the Act must establish a trust by January l, 1999; and
WHEREAS, the City of Redd'mg wishes to take the steps necessary to make its written
declaration of the trust so established with respect to the assets of the Deferred Compensation Plan
that are administered by selected investment providers; and
WHEREAS, the City Manager or appointed designee is authorized to execute on behalf of
the City Council of the City of Redding trust documents required to implement the Deferred
Compensation Plan;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of
Redding that the aforesaid Declaration of Trust for Assets of the City of Redding Deferred
Compensation Plan is hereby approved.
I HEREBY CERTIFY that the foregoing Resolution was introduced, read, and adopted at
the regular meeting of the City Council of the City of Redding on the 2°d day of February, 1999, by
the following vote:
AYES: COUNCIL MEMBE�S: Cibula, Kight, McGeorge, Pohlmeyer and Anderson
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
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OBERT C. ANDERSON, Mayor
ATTEST: FORM APPROVED: �
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CONNIE STROHM , City Clerk W. LEONARD WINGA , City Attorney d
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' A DECLARATION OF TRUST FOR ASSETS OF THE
CITY OF REDD(NG DEFERRED COMPENSATION PLAN
Recitals
Whereas, the City of Redding maintains the City of Redding Deferred Compensation Plan (the
"Plan") for certain employees("Participants"), which was established pursuant to Section 457 of the
United States Internal Revenue Code (the "Code"); and
Whereas, the federal Small Business Job Protection Act of 1996 (the"Act") required that the assets
of section 457 deferred compensation plans be held in trust, as defined in the Code, for the exclusive
benefit of plan participants and their beneficiaries; and
Whereas, under the terms of the Act, Section 457 plans in existence on the effective date of the Act
must establish a trust by January 1, 1999; and
Whereas, the City of Redding wishes to take the steps necessary to make its written declaration of
the trust so established with respect to the assets of the Plan that are administered by selected
investment providers; and
Whereas, the City Manager or appointed designee is authorized to execute on behalf of the City
Council of the City of Redding trust documents required to implement the Plan;
Therefore, the City Council of the City of Redding declares as follows:
I.O 1 Trust. A trust is hereby created to hold all of the assets of the Plan for the exclusive
benefit of Participants and Beneficiaries, except that expenses and taxes may be paid
from the Trust as provided in Section 1.03. The trustee shall be the City of Redding,
by and through its authorized employees, shall hold, administer, and distribute the
property in trust according to the terms of this instrument.
1 A2 Investment Powers. The trustee shall have the po��•ers listed below with respect to
investment of Trust assets:
(a) To invest and reinvest the assets of the Trust without distinction
between principal and income in common or preferred stocks, shares
of regulated investment companies and other mutual funds, bonds,
loans, notes, debentures, certificates of deposit, contracts with
insurance companies including but not limited to insurance, individual
or group annuity, deposit administration, guaranteed interest
contracts, and deposits at reasonable rates of interest at banking
institutions including but not limited to savings accounts and
certificates of deposit. Assets of the Trust may be invested in
securities that involve a higher degrec of risk thau investmeuts that
have demonstrated their investment performance over an extended
period of time.
Deferred Compensation Trust Agreement 1
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� (b) To invest and reinvest all or any part of the assets of the Trust in any
common, collective or commingled trust fund that is maintained by a
bank or other institution and that is also available to Employee plans
qualified under Section 40 l of the Code, or any successor provisions
thereto, and during the period of time that an investment through any
such medium shall exist, to the extent of participation of the Plan, the
declaration of trust of such common, collective, or comrnuigled trust
fund shall constitute a part of this Plan.
(c) To invest and reinvest all or any part of the assets of the Trust in any
group annuity, deposit administration or guaranteed interest contract
issued by an insurance company or other financial institution on a
commingled or collective basis with the assets of any other plan or
trust qualified under section 401(a)of the Code or any other plan
described in section 401(a)(24)of the Code, and such contract may be
held or issued in the name of the selected investment providers, or
such custodian as the selected investment providers may appoint, as
agent and nominee for the City of Redding. During the period that an
investment through any such contract shall exist, to the extent of
participation of the Plan, the terms and conditions of such contract
shall constitute a part of the Plan.
(d) To hold cash awaiting investment and to keep such portion of the
Trust in cash or cash balances, without liability for interest, in such
amounts as may from time to time be deemed to be reasonable and
necessary to meet obligations under the Plan or otherwise to be in the
best interests of the Plan.
(e) To hold,to authorize the holding of, and to register any investment to
the Trust in the name ofthe Plan,the City of Redding,or any nominee
or agent of any of the foregoing, including the sclected investment
providers or in bearer form to deposit or arrange for the deposit of
securities in a qualified central depository even though, when so
deposited, such securities may be merged and held in bulk in the name
of the nominee of such depository with other securities deposited
therein by any other person, and to organize corporations or trusts
under the laws of any jurisdiction for the purpose of acquiring or
holding title to any property for the Trust, all with or without the
addition of words or other action to indicate that property is held in
a fiduciary or representative capacity but the books and records ofthe
Plan shall at all times show that all such investments are part of the
Trust.
(l) Upou sucli tern��s as niay be clecmecl a�lvisable by llie Cily ul�lte�lau��
or the selected investment providers, as the case may be, for the
protection of the interests of the Plan or for the preservation of the
DeferreJ Compensation Trust Agreement 2
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� valuc of an investment, to exercise and enforce by suit for legal or
equitable remedies or by other action, or to waive any right or claim
on behalf of the Plan or any default in any obligation owing to the
Plan, to renew, extcnd the time for payment of, agree to a reduction
in the rate of interest on,or agree to any other modification or change
in the terms of any obligation owing to the Plan, to settle,
compromise,adjust or submit to arbitration any clairn or right in favor
of or against the Plan, to exercise and enforce any and all rights or
foreclosure, bid for property in foreclosure, and take a deed in lieu of
foreclosure with or without paying consideration therefore to
commence or defend suits or other legal proceedings whenever any
interest of the Plan requires it, and to represent the Plan in all suits or
legal proceedings in any count of law or equity or before any body or
tribunal.
(g) To employ suitable consultants,depo5itories,agents,and legal counsel
on behalf of the Plan.
(h) To open and maintain any bank account or accounts in the name of
the Plan, the City of Redding, or any nominee or agent of the
foregoing, including the selected investment providers in any bank or
banks.
(i) To do any and all other acts that my be deemed necessary to carry out
any of the powers set forth herein.
1.03 Taxes and Expenses. All taxes of any and all kinds whatsoever that may be levied or
assessed under existing or future laws upon,or in respect to the Trust, or the income
thereof, and all commissions or acquisitions or dispositions of securities and similar
expenses of investment and reinvestment of the Trust, shall be paid from the Trust.
Such reasonable compensation of the selected investment providers,as may be agreed
upon from time to time by the City ofRedding and the selected investment providers,
and reimbursement for reasonable expenses incurred by the selected investment
providers in performance of its duties hereunder(including but not limited to fees for
legal,accounting,investment and custodial services)shall also be paid from the Trust.
However, no person who is a fiduciary within the meaning of section 3(21)(A) of
ERISA and regulations promulgated thereunder, and who receives full-time pay from
the City of Redding may receive compensation from the Trust, except for expenses
properly and actually incurred.
1.04 Payment of Benefits. The payment of benefits from the Trust in accordance with the
terms of the Plan may be made by the selected investment providers, or by any
custodian or other person so authorized by the City of Redding to make such
�lisl�utsciilcul. rl'L►c selecte�l uivestirieut pt'uvi�lers, cuslo�liau oi'ullier persou sliall tioC
be liable with respect to any distribution of Trust assets made at the direction of the
City of Redding.
Deferred Compensation Trust Agreement 3
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1.05 Investment Funds. In accordance with uniform and nondiscriminatory rules
established by the City of Redding and the selected investment providers, the
Participant may direct his/her Accounts to be invested in one(1) or more investment
funds available under the Plan; provided, however, that the Participant's investment
directions shall not violate any investment restrictions established by the City of
Redding and shall not include any investment in collectibles, as defincd in section
408(m) of the Code.
1.06 Valuation of Accounts. As of each Accounting Date, the Plan assets held in each
investment fund offered shall be valued at fair market value and the investment income
and gains or losses for each fund shall be determined. Such investment income and
gains or losses shall be allocated proportionately among all Account balanccs on a
fund-by-fund basis. The allocation shall be in the proportion that each such Account
balance as ofthe immediately preceding Accounting Date bears to the total ofall such
Account balances as of that Accounting Date. For purposes of this Article, all
Account balances include the Account balances of all Participants and Beneficiaries.
This Trust Agreement is hereby made and entered into as of the 2nd day of February, 1999.
ATTEST: City of Redding Deferred Compensation Plan
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By: � 'v`�
CONNIL STROHMAYER, City rk Robert C. Anderson
Mayor
FORM APPR VED:
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W. Leonard Wingat�Ci Attorney
C:VvlyFiles\1999wp�Deferred Comp\trust agmt.wpd
Deferred Compensation Trust Agreement 4