RES-2009-102A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING
RESOLUTION NO. 2002R-195 WHICH ADOPTED THE ANAHEIM RETIREMENT
HEALTH SAVINGS AND REIMBURSEMENT PLAN.
WHEREAS. the Human Resources Director and the City Treasurer have recommended in a staff
report dated June 23, 2009. that Resolution No. 2002R -195, as last amended by Resolution 2007R -197, be
amended to change the Health Savings and Reimbursement Plan and the Integral Part Trust to a reflect the
transfer of the administration of the plan from the City Treasurer to the Human Resource Director due to an
organization restructure effective July 1. 2009; and
WHEREAS, the City Council of the City of Anaheim does find that the aforementioned amendment
is in the best interests of the City of Anaheim.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Anaheim that the Plan
be amended and restated. A copy of the Plan as amended and restated is attached as Exhibit "A A copy of
the I rust as amended is attached as Exhibit "B and
BE IT FURTHER RESOLVED that the effective date of said amendment to Resolution No. 2002R-
I95 4s July 1, 2009; and
BE IT FURTHER RESOLVED that, except as amended herein, Resolution No 2002R -195 shall
remain in full force and effect.
THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of
Anaheim this 23` day of June 2009, by the following role call vote:
AYES: Mayor Pringle, Council Members Hernandez, Sidhu, Galloway, Kring
NOES NONE
ABSENT: NONE
ABSTAIN: NONE
.ATTEST:
CITY CLERK OF T!IECiTY OF ANAHEIM
APPROVED AS TO FORM:
CRISTINA L. TALLEY, CITY ATTORNEY
BY-
MOSES
ASSIST
OHNS
NT CIT
TTORNEY
RESOLUTION NO. 2009- 102
MAYOR OF THE CITY (?F A EIM
300` HEAL FH SAVINGS AND REIMB[IRSEMENT PLANDOC
EXHIBIT A
CITY OF ANAHEIM
HEALTH SAVINGS
AND REIMBURSEMENT
PLAN
7/01/09
TABLE OF CONTENTS
ARTICLE I. NAMF 1
1.01 Establishment of Plan 1
.02 Purpose 1
ARTICLE II. DEFINITIONS 1
2.01 Account Balance 1
2.02 Benefits 1
2.03 Claim Administrator 1
2.04 Code 1
2.05 Covered Dependent 1
2.06 Covered Participant 1
2.07 Covered Person 2
2.08 Covered Spouse 2
2.09 Deferred Compensation Committee 2
2.10 Dependent 2
2.11 Disability 2
212 Eligible Employee 2
2.13 Eligible Medical Expenses 2
2.14 Eligible Premium Payments 2
2.15 Employee 2
2.16 Employer 3
2.17 Forfeitures 3
2.18 Participant 3
2.19 Participating Employee 3
2.20 Participating Employee (Rotating Department Employee Representative) 3
2.21 Plan Administrator 3
2.22 Plan Year 3
2.23 Provider 3
2.24 Spouse 3
225 Sub Committee 3
2.26 Valuation Date 3
ARTICLE III. PARTICPATION 3
3.01 Participation 3
ARTICLE IV. PLAN FUNDING 4
4.01 Integral Part Trust 4
4.02 Retirement Health Savings Plan Accounts 4
ARTICLE V. PAYMENT OF BENEFITS 5
x.01 Eligibility for Benefits 5
5.02 Claims for Benefits 5
ARTICLE VI. PLAN ADMINISTRATION 5
6.01 Allocation of Authority 5
6.02 Provision for Third -Party Plan Service Providers 6
6.03 Several Fiduciary Liability 6
6.04 Compensation of Plan Administrator 6
6.05 Bonding 6
6.06 Payment of Administrative Expenses 7
6.07 Timeliness of Payments 7
6.08 Annual Statements 7
6.09 Forfeitures 7
.ARTICLE VIl. CLAIMS PROCEDURE 8
".01 Procedure if Benefits are Denied under the Plan 8
7 .02 Requirement for Written Notice of Claim Denial 8
7.03 Right to Request Hearing on Benefit Denial 8
7 .04 Disposition of Disputed Claims 8
.05 Preservation of Other Remedies 9
ARTICLE VIII. AMENDMENT OR TERMINATION OF PLAN 9
8.01 Permanency 9
8.02 Employer's Right to Amend or Terminate 9
ARTICLE IX. GENERAL PROVISIONS 9
9.01 No Employment Rights Conferred 9
9.02 Nonalienation of Benefits and Accounts 10
9.03 Mental or Physical Incompetency 10
9.04 Inability to Locate Payee- Forfeitures 10
9.05 Requirement of Proper Forms 10
9.06 Source of Payments 10
9.07 Tax Effects 11
9.08 Multiple Functions 11
9.09 Gender and Number 11
9.10 Headings 11
9.1 1 Applicable Laws 11
9.12 Severability 11
9.13 Miscellaneous 11
ii
ARTICLE I. NAME
This Instrument made and published by the City of Anaheim (hereinafter called "Employer on
the 1st day of July. 2002. creates the City of Anaheim Retirement Health Savings Plan. The
amendment and restatement of the Plan is effective July 1. 2009.
1 .0 1 Establishment of Plan
The Employer hereby amends and restates the Retirement Health Savings Plan and Trust
effective as of the 1st day of July 2009. However, the terms of this Plan Document may be
supplemented by one or more "Adoption Agreements" established by the Employer in
conjunction with this Plan.
1.02 Purpose
This Plan has been established to allow certain former employees of the City, and their eligible
spouses and dependents, to be reimbursed in limited amounts for the cost of certain medical
expenses incurred by them through an Integral Part Trust as provided in Section 4.01.
ARTICLE II. DEFINITIONS
The following words and phrases as used herein shall have the following meanings for the
purpose of this Plan. unless a different meaning is plainly required by the context:
2.01 Account Balance: The bookkeeping account maintained on behalf of a Participant
pursuant to Section 3 01.
2.02 Benefits: Any amounts paid to reimburse a Covered Person for Eligible Medical
Expenses incurred by such person.
2.03 Claims Administrator: The Claims Administrator appointed by the Provider(s) with the
consent of the Plan Administrator or a Claims Administrator appointed by the Plan
Administrator.
2,04 Code: The Internal Revenue Code of 1986, as amended. Reference to a section of the
Code shall include such section and any comparable section or sections of any future legislation
that amends, supplements. or supersedes such section.
2.05 Covered Dependent: A Dependent of a Covered Participant and a person who is a
Covered Dependent of a Participant at the date of the Covered Participant's death.
2.06 Covered Participant: A Participant who is either:
(a) a former Employee: or
1
(b) an Employee who has become totally and permanently disabled, as
determined by CALPERS, and continues to be totally and permanently disabled,
as determined by CALPERS.
2.07 Covered Person: A Covered Participant. a Covered Spouse and a Covered Dependent(s).
2.08 Covered Spouse: The Spouse of a Covered Participant and a person who was the Spouse
of a Participant at the time of the Participant's death.
2.09 Deferred Compensation Committee: The Committee, consisting of the Plan Administrator,
as Chairperson; the City Manager or his appointee; the Finance Director or his appointee; the City
Treasurer or his appointee; two (2) Participating Employees and one (1) Rotating Department
Employee Representative.
2.10 Dependent: .Any individual who is a dependent of a Participant within the meaning of
Code Section 105(b) and Code Sections 152.
2.11 Disability: The substantial permanent inability of a Participant to engage in his usual
occupation by reason of a medically determinable physical or mental impairment as determined by
the Employer or by the Public Employees' Retirement System, on the basis of advice from a
physician or physicians.
2.12 Fliuible Employee: Any Employee who meets the eligibility requirements for the Plan
that are outlined in the Employer's Personnel Rule 23.7 Retirement Health Saving Plan, as
amended and /or Letters of Understanding and /or Memorandums of Understanding with the
collective hargaining representative for such Employee.
2.1 3 Eligible Medical Expenses: Under the terms of this Plan, "Eligible Medical Expenses"
that are (i incurred by a Covered Person, and (ii) described in Section 213(d) of the Code;
provided. however, that notwithstanding the foregoing, with respect to a Covered Person who, at
the time of retirement or other termination of employment is not included in a unit of employees
that is covered by a collective bargaining agreement. the term "Eligible Medical Expenses" shall
be limited to the Eligible Premium Payments of a Covered Person.
2.14 Eligible Premium Payments: An amount that is described in Section 213(d) of the Code,
and that is a premium paid or payable by a Covered Person for coverage of Covered Persons
including, but not limited to, Medical insurance premiums, Medicare Part B insurance premiums,
Medicare Part D insurance premiums. Medicare Supplemental insurance premiums, Prescription
Drug insurance premiums, COBRA insurance premiums, Dental insurance premiums, Vision
insurance premiums. and Qualified Long -Term Care insurance premiums, permitted under
Section 213(d) of the Code. as amended.
2.15 Employee: Each natural person, whether appointed or elected, who is employed by the
Employer as a common law employee, excluding any employee who is included in a unit of
employees covered by a collective bargaining agreement that does not specifically provide for
participation in the Plan.
2. 6 Employer: The City of Anaheim.
2.17 Forfeitures: Any unused amounts that remain in the Account of Participant, as provided
for in Section 3.01(b). Section 9.04 or that otherwise arise under Section 4.02 or other the
provisions of this Plan.
2.18 Participant: As described in Article III.
2.19 Participating Employee: An appointed member to the Deferred Compensation Committee.
The Participating Employee must submit an Application for Appointment to the Committee. The
Committee will select the Participating Employee. The Participating Employee must be a full -time
employee with the City of Anaheim. This member shall serve a two (2) year term.
2.20 Participating Employee (Rotating Department Employee Representative): The Rotating
Department Representative will be selected from Departments in the order of staff size. Any
Department may choose to pass or not participate. The respective Department Head shall select the
Department Representative. The Department Representative must be a full -time employee with the
Cite of Anaheim. This member shall serve a two (2) year term.
2.21 Plan Administrator: The Human Resources Director shall serve as Plan Administrator
unless another person or entity is designated by the City Council.
Ilan Year: The calendar year.
2.23 Provider: An institution providing investments or deposit vehicles.
2.24 Spouse: A person who satisfies both of the following requirements: (i) the person is the
Participant's lawful spouse as determined under the laws of the state in which the Participant has
his or her primary place of residence. and (ii) the person is considered to be the Participant's
spouse for purposes of Code Section 105(b).
2.25 Sub- Committee: A subdivision of the Committee and shall be less than a quorum of the
Committee.
2.26 Valuation Date: Each business day.
Ali other defined terms in this Plan shall have the meanings specified in the various Articles of
the Plan in which they appear.
ARTICLE III. PARTICIPATION
3.01 Participation
(a) Each Eligible Employee shall become a Participant in this Plan at the time that a
credit is made to the Account of such person under this Plan. A Participant's
participation in the Plan shall cease at the earliest of (i) the date that the
4.(tl Integral Part Trust
Participant's Account balance is either exhausted or forfeited, or (ii) the date of
the Participant's death.
b Upon the death of the Participant, the Account may be used by any persons who
are, at the date of the Participant's death, either the Covered Spouse or a Covered
Dependent who is a Dependent of the Participant. The Account may be used by
any of such persons until such time as the amounts credited to the Account are
exhausted. If there are no persons described in this paragraph (b), or all persons
described in this paragraph (b) die before the amount credited to the deceased
Participant's Account is exhausted, the balance in the Account shall be a
Forfeiture. All Forfeitures shall either be expended for the payment of Plan
expenses or allocated to the Accounts other Participants in accordance with
Section 6.09 of the Plan.
ARTICLE IV. PLAN FUNDING
This Plan shall be funded solely through the '`Integral Part Trust" that was established in
conjunction with the adoption of this Plan. The Employer shall make contributions to the Trust
as is required under any applicable City policies established for non bargaining unit employees,
including. without limitation, Personnel Rules 23.7 Retirement Health Saving Plan and 33 Post
Retirement Medical Benefits, and the terms of any applicable collective bargaining agreements,
as amended.
4.02 Retirement Health Savings Plan Accounts
A separate Retirement Health Savings Plan Account shall be established for each Plan
Participant. As is provided in the "Trust, any applicable City policies and the terms of any
applicable collective bargaining agreements:
Lai The Account of a Participant shall be credited for certain amounts of Employer
contributions and other contributions that are made to the Trust on behalf of a
Participant,
(b) such Account may be subdivided into sub- accounts that are designed to track one
or more types of contributions that are being made to the Plan on behalf of a
Participant, and
all or some of the sub- accounts of the Participant may be subject to forfeiture
upon a Participant's termination of employment or other circumstances.
Accounts shall be maintained only for purposes of bookkeeping under this Plan and its related
Integral Part Trust; and the Employer shall not be required by the terms of this Plan and such
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trust to maintain on its books for any Participant or other Covered Person an account or accounts
with respect to this Plan.
The account of a Participant shall be debited whenever the Plan reimburses the Participant or a
Covered Person associated with such Participant for the Eligible Medical Expenses of such
persons. When a Participant terminates employment, any portion of the Account that is not
nonforfeitable shall be forfeited. Accordingly. the forfeited amount shall be deducted from the
Participant's Account; and any assets of the Trust attributable to such forfeited amounts shall
either he expended for the payment of Plan expenses or allocated to the Accounts other
Participants in accordance with Section 6.09 of the Plan.
ARTICLE V. PAYMENT OF BENEFITS
5.01 Eligibility for Benefits
Each Covered Person shall be entitled to reimbursement for his documented Eligible Medical
Expenses in an amount not to exceed the nonforfeitable Account balance of the Participant (or
deceased Participant
5.02 Claims for Benefits
No benefit shall be paid hereunder unless a Participant has first submitted a claim for benefits to
the Claims Administrator in the manner specified by the Claims Administrator or Provider, and
pursuant to the procedures set out in Article VI, below. Upon receipt of a properly documented
claim, the Claims Administrator shall pay the Participant the benefits provided under this Plan as
soon as is administratively feasible.
ARTICLE VI. PLAN ADMINISTRATION
6.01 Allocation of Authority
The Plan Administrator shall control and manage the operation and Administration of the Plan.
The Employer shall have the exclusive right to interpret the Plan and to decide all matters arising
thereunder, including the right to remedy possible ambiguities, inconsistencies, or omissions. All
determinations of the Employer with respect to any matter hereunder shall be conclusive and
binding on all persons. Without limiting the generality of the foregoing, the Employer shall have
the following powers and duties:
(ai To decide on questions concerning the Plan and the eligibility of any Employee to
participate in the Plan. in accordance with the provisions of the Plan;
(b) To determine the amount of benefits that shall be payable to any person in
accordance with the provisions of the Plan; to inform the Claims Administrator,
as appropriate. of the amount of such Benefits; and to provide a full and fair
5
review to any Participant whose claim for benefits has been denied in whole or in
part; and
c) To designate other persons to carry out any duty or power which would otherwise
be a responsibility of the Plan Administrator, under the terms of the Plan.
(d) To require any person to furnish such reasonable information as it may request for
the purpose of the proper administration of the Plan as a condition to receiving
any benefits under the Plan:
(e) To make and enforce such rules and regulations and prescribe the use of such
forms as he shall deem necessary for the efficient administration of the Plan.
6.02 Provision for Third -Party Plan Service Providers
The Provider. subject to approval of the Plan Administrator, may employ the services of such
persons as it may deem necessary or desirable in connection with operation of the Plan. The
Plan Administrator, the Employer (and any person to whom it may delegate any duty or power in
connection with the administration of the Plan), its Employees or Agents, the Trustees and all
persons connected therewith may rely upon all tables, valuations, certificates, reports and
opinions furnished by any duly appointed actuary, accountant, (including Employees who are
actuaries or accountants). consultant, third party administration service provider, legal counsel,
or other specialist, and they shall be fully protected in respect to any action taken or permitted in
good faith in reliance thereon. All actions so taken or permitted shall be conclusive and binding
as to all persons.
6.03 Several Fiduciary Liability
To the extent permitted by law. neither the Plan Administrator, the Trustees, Employees or
Agents of the Employer shall incur any liability for any acts or for failure to act except for his
own willful misconduct or willful breach of this Plan.
6.04 Compensation of Plan Administrator
Unless otherwise agreed to by the Employer. the Plan Administrator shall serve without
compensation for services rendered in such capacity, but all reasonable expenses incurred in the
performance of his duties shall be paid by the Employer.
6.05 Bonding
Unless otherwise determined by the Employer, or unless required by any Federal or State law,
the Plan Administrator shall not be required to give any bond or other security in any jurisdiction
in connection with the administration of this Plan.
6
6.06 Pavment of Administrative Expenses
All reasonable expenses incurred in administering the Plan shall be paid by the Employer,
provided. however that the Account of each Participant shall be debited for the cost (if any)
charged by the Provider or Claims Administrator for maintenance of his Benefit Account unless
otherwise paid by the Employer.
6.07 Timeliness of Payments
Subject to Section 7.01. payments shall he made as soon as administratively feasible but no
longer than 30 calendar days after the required forms and documentation have been received by
the Claims Administrator.
6.08 Statements
The Provider and /or Claims Administrator shall furnish each Participant with a quarterly
statement of his Account Balance within fifteen (15) days after the close of each quarter.
6.09 Forfeitures
All Forfeitures shall either be expended for the payment of Plan expenses or allocated to the
Accounts other Participants in accordance with the provisions of this Section.
a) If a Forfeiture is attributable to the Account of a Participant who, at the time of
retirement or other termination of employment, was not included in a unit of
employees that was covered by a collective bargaining agreement, the Forfeiture
shall be used for the payment of Plan expenses unless, at the time of the
Forfeiture. any applicable City policies established for non bargaining unit
employees. including without limitation, Personnel Rules 23.7 Retirement
Health Saving Plan and 33 Post Retirement Medical Benefits, provide for an
allocation of the Forfeiture to the Accounts of some or all of the other Plan
Participants.
(b) If a Forfeiture is attributable to the Account of a Participant who, at the time of
retirement or other termination of employment, was included in a unit of
employees that was covered by a collective bargaining agreement, the Forfeiture
shall he used for the payment of Plan expenses unless, at the time of the
Forfeiture, the provisions of a collective bargaining agreement that covers the
employees who are employed within the unit of employees that previously
employed the Participant provide for an allocation of the Forfeiture to the
Accounts of some or all of the other Plan Participants.
7
ARTICLE VII. CLAIMS PROCEDURE
7.01 Procedure if Benefits are Denied Under the Plan
Any Covered Person or his duly authorized representative may file a claim for a plan benefit to
which the claimant believes that he is entitled. Such a claim must be filed in the manner
specified by the Claims Administrator and delivered to the Claims Administrator, in person,
electronically, or by mail. postage paid. Within thirty (30) days after receipt of such claim, the
Claims Administrator shall send to the claimant, by mail, postage prepaid, notice of the granting
or denying, in whole or in part, of such claim, unless special circumstances require an extension
of time for processing the claim. In no event may the extension exceed ninety (90) days from the
end of the initial period. If such extension is necessary, the claimant will be given a written
notice to this effect prior to the expiration of the initial 30 -day period. The Claims Administrator
shall have full discretion to deny or grant a claim in whole or in part, subject to review by the
Plan Administrator as set forth below. If notice of the denial of a claim is not furnished in
accordance with this Section. the claim shall be deemed denied and the claimant shall be
permitted to exercise his right to review pursuant to Sections 7.03 and 7.04.
7.(>2 Requirement for Written Notice of Claim Denial
The Claims Administrator shall provide, to every claimant who is denied a claim for benefits,
written notice setting forth in a manner calculated to be understood by the claimant:
(a) The specific reason or reasons for the denial;
(b) Specific reference to pertinent Plan provisions on which the denial is based;
c i A description of any additional material or information necessary for the claimant
to perfect the claim and an explanation of why such material is necessary; and
(d) An explanation of the Plan's claim review procedure.
7 03 Right to Request Hearing on Benefit Denial
Within sixty (60) days after the receipt by the claimant of written notification of the denial (in
whole or in part) of his claim, the claimant or his duly authorized representative, upon written
application to the Plan Administrator, in person or by certified mail, postage prepaid, may
request a review of such denial, may review pertinent documents, and may submit issues and
comments in writing.
7.04 Disposition of Disputed Claims
Upon its receipt of notice of a request for review, the Plan Administrator shall make a prompt
decision on the review. The decision on review shall be written in a manner calculated to be
8
understood by the claimant and shall include specific reasons for the decision and specific
references to the pertinent plan provisions on which the decision is based. The decision on
review shall be made not later than sixty (60) days after the Plan Administrator's receipt of a
request for a review unless special circumstances require an extension of time for processing, in
which case a decision shall be rendered not later than one hundred- twenty (120) days after
receipt of a request for review. If an extension is necessary, the claimant shall be given written
notice of the extension prior to the expiration of the initial sixty (60) day period. If notice of the
decision on the review is not furnished in accordance with this Section, the claim shall be
deemed denied and the claimant shall be permitted to exercise his right to legal remedy pursuant
to Section 7.05.
7.05 Preservation of Other Remedies
After exhaustion of the claims procedures provided under this Plan, nothing shall prevent any
person from pursuing any other legal or equitable remedy otherwise available.
ARTICLE VIII. AMENDMENT OR TERMINATION OF PLAN
8.01 Permanency
While the Employer fully expects that this Plan will continue indefinitely, permanency of the
Plan will he subject to the Employer's right to amend or terminate the Plan, as provided in
Sections 8.02.
8.02 Employer's Right to Amend or Terminate the Plan
The Employer reserves the right to amend the Plan at any time and from time -to -time. Any such
amendments may be made retroactively if it is deemed necessary or appropriate to meet the
requirements of the Code, or any similar provisions of subsequent revenue or other laws, or the
rules and regulations in effect under any of such laws or to conform with governmental
regulations or other policies. to modify or amend in whole or in part any or all of the provisions
of the Plan.
The Employer reserves the right to discontinue or terminate the Plan at any time.
ARTICLE IX. GENERAL PROVISIONS
9.01 No Employment Rights Conferred
Neither this Plan nor any action taken with respect to it shall confer upon any person the right to
be continued in the employment of the Employer.
9
9.02 Nonalienation of Benefits and Accounts
No benefit or Account balance under the Plan shall be subject in any manner to anticipation,
alienation. sale, transfer, assignment, pledge. encumbrance or charge, and any attempt to do so
shall be void.
No benefit or Account balance under the Plan shall in any manner be liable for or subject to the
debts, contracts. liabilities, engagements or torts of any person. No Participant or Covered
Person shall be permitted or required to anticipate, alienate, sell, transfer, assign, pledge,
encumber or charge any benefit or Account balance under the Plan; and any attempts to do so
shall he void.
9.03 Mental or Physical Incompetency
If the Plan Administrator determines that any person entitled to payments under the Plan is
incompetent by reason of physical or mental disability, he may cause all payments thereafter
becoming due to such person to be made to any other person for his benefit, without
responsibility to follow the application of amounts so paid. Payments made pursuant to this
Section shall completely discharge the Plan Administrator and the Employer.
9.04 Inability to Locate Payee- Forfeitures
The Plan Administrator shall make a reasonable effort to locate all persons entitled to benefits
under the Plan; however, notwithstanding any provision in the Plan to the contrary, if, after a
period of lour (4) ears from the date such benefit shall be due, any such persons entitled to
benefits have not been located, their rights under the Plan shall be construed as if such persons
had died immediately before such Plan benefits became payable. Before this provision becomes
operative. the Plan Administrator shall send a certified letter to all such persons at their last
known address advising them that their interest or benefits under the Plan shall be so construed.
Five (5 ears from the time the benefits first became payable, if no Covered Person can be
found, the Account Balance of the Participant shall be considered a Forfeiture. All Forfeitures
shall either be expended for the payment of Plan expenses or allocated to the Accounts of other
Participants in accordance with Section 6.09 of the Plan.
9.05 Requirement of Proper Forms
All communications in connection with the Plan made by a Participant shall become effective
only when duly executed on forms provided by and filed with the Plan Administrator.
9.06 Source of Payments
The Integral Part Trust shall be the sole source of benefits under the Plan. No Covered Persons
or other person shall have any right to. or interest in, any assets of the Employer upon
termination of employment or otherwise.
10
9.07 Tax Effects
Neither the Employer nor the Plan Administrator makes any warranty or other representation as
to whether any payments received by a Participant hereunder will be treated as includible in
gross income for federal or state income tax purposes; and the Employer may withhold taxes
from reimbursements and report reimbursements as taxable income to the extent that that the
Employer deems is required by law.
9. 08 '_Multiple Functions
Any person or group of persons may serve in more than one capacity with respect to the Plan.
9.09 Gender and Number
The masculine pronoun, whenever used herein, shall include the feminine pronoun, and the singular
shall include the plural, except where the context requires otherwise.
9.10 Headings
The Article and Section headings contained herein are for convenience of reference only, and
shall not be construed as defining or limiting the matter contained thereunder.
9.11 Applicable Laws
The provisions of the Plan shall be construed, administered and enforced according to the laws of
the State of California.
9 Severability
Should any part of this Plan subsequently be invalidated by a court of competent jurisdiction, the
remainder thereof shall be given effect to the maximum extent possible.
9.13 Miscellaneous
The Deferred Compensation Committee is empowered to review, evaluate, and make
recommendations for product providers to the City Council. Additionally, the Deferred
Compensation Committee will serve as an advisor to the Plan Administrator in decisions, specific
duties and responsibilities for overall plan administration are noted below:
A. CITY COUNCIL
Authorize. by resolution, the Health Saving and Reimbursement Plan in
compliance with Section 105(c) and Section 106 of the Code.
Approves additions or removal of Plan Providers, as well as approves major
amendments to approved plans.
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Authorize the administration of the Plan.
PLAN ADMINISTRATOR
l Day to day administration. including approval of Plan enrollment forms.
Authority to sign all legal agreements with approved Plan Providers,
including minor Plan amendments.
Communicating the Retirement Health Savings Program to employees.
Maintain Retirement Health Savings Programs Procedures Manual and
related Plan documents.
Coordinate Plan Provider /City employee meeting schedule.
The Plan Administrator shall have the right to delegate any of the above
duties to staff.
DEFERRED COMPENSATION COMMITTEE
Conduct reviews of the Retirement Health Savings Program and make
recommendations as necessary.
Review Plan Providers performance and assist in the Plan Administrator in
developing recommendations on adding, deleting or amending Plan Providers
to the City Council.
Review and make determinations on adding, deleting or amending Investment
Options.
4. The Committee shall have the power to appoint subcommittees.
SLAB- COMMITTEE
Performs task within the scope of the Committee's responsibility.
The Sub- committee makes reports and recommendations for consideration to the
Committee.
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IN WITNESS WHEREOF, we have executed this Plan the date and year first written above.
CITY OF ANAHEIM
BY:
ATTEST
PLAN ADMINISTRATOR
LINDA ANDAL, CITY CLE
APPROVED AS TO FORM:
CRISTINA L. TALLEY, CITY ATTORNEY
BYE 'M S W. 1 SON,
A SISTAN, IITY ATTORNEY
13
2009 RHS Trust Unmarked. D(4
EXHIBIT B
DECLARATION OF TRUST OF THE
CITY OF ANAHEIM
INTEGRAL PART TRUST
7/1/09
RECITALS
DECLARATION OF TRUST OF THE
CITY OF ANAHEIM
INTEGRAL PART TRUST
7/1/09
Declaration of Trust made effective as of the 1 day of July, 2002, by and between the City of
Anaheim, California. a municipal corporation (hereinafter referred to as the "Employer and the
City of _Anaheim Deferred Compensation Committee (hereinafter referred to as the "Trustees
as amended July 1. 2009.
WHEREAS, the Employer is a political subdivision of the State of California exempt from
federal income tax under the Internal Revenue Code of 1986; and
WHEREAS, the Employer has established the City of Anaheim Retirement Health Savings Plan
(the "Plan") to provides for the security and welfare of certain eligible employees (hereinafter
referred to as "Participants and their Spouses and Dependents (collectively "Covered
Persons"); and
WHEREAS, the Plan is an essential function and integral part of the exempt activities of the
Employer and the purpose of this trust is providing funding for the Plan through a segregated
fund; and
WHEREAS, the authority to conduct the general operation and administration of the Plan is
vested in the Employer or its designee, who has the authority and shall be subject to the duties
with respect to the trust specified in this Declaration of Trust;
NOW, 'THEREFORE, the parties hereto do hereby establish this trust, to be known as the
Declaration of Trust of the City of Anaheim Integral Part Trust (hereinafter referred to as the
"Trust and agree that the following shall constitute the Declaration of Trust (hereinafter
referred to as the "Declaration"):
ARTICLE I. DEFINITIONS
Detinitiom For the purposes of this Declaration, capitalized terms shall have the meanings
ascribed to them in the Plan. unless otherwise expressly provided herein; and the following terms
shall have the respective meanings set forth below, unless otherwise expressly provided.
1 1 Deferred Compensation Committee: Shall mean the Committee, consisting of the Human
Resources Director, as Chairperson; the City Manager or his appointee; the Finance Director
or his appointee; the City Treasurer or his appointee; two (2) Participating Employees and
one (1) Rotating Department Employee Representative.
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1 ,02 Investment Fund: means any separate investment option or vehicle selected by the
Employer in which all or a portion of the Trust assets may be separately invested as
herein provided.
1.03 Provider: means the ICMA Retirement Corporation or any other person appointed as
such by the Employer.
1.04 Trust: means the Integral Part Trust established by this Declaration.
1. 05 Trustees: means the persons who are members of the Deferred Compensation
Committee; and any such person shall cease to be trustees at the time that they cease to
be members of such committee. The term trustee also shall include any other person or
persons named by the Employer as trustees, including a third party as trustee.
ARTICLE II. ESTABLISHMENT OF TRUST
2.01 The Trust is hereby established as of the date set forth above for the purposes of
providing funds for the payment of benefits under the Plan.
ARTICLE III. CONSTRUCTION
3.01 This Trust and its validity, construction and effect shall be governed by the laws of the
State of California.
3.02 Pronouns and other similar words used herein in the masculine gender shall be read as the
feminine gender where appropriate. and the singular form of words shall be read as the plural
where appropriate.
3.03 If any provision of this Trust shall be held illegal or invalid for any reason. such
determination shall not affect the remaining provisions, and such provisions shall be construed to
effectuate the purpose of this Trust.
ARTICLE IV. BENEFITS
4.01 Benefits. This Trust shall provide benefits to Covered Persons in accordance with the
terms of the Plan.
4.02 Form of Benefits. This Trust shall provide benefits by cash payment to the Participant or
other Covered Person as provided for in the Plan. In addition, if the Employer should make a
payment directly to a medical provider on behalf of a Covered Person and payment of such
amount by the Covered Person would constitute the Covered Person's payment of an Eligible
Medical Expense, with the consent of the Covered Person, the Employer shall be reimbursed
from this Trust for the amount of such payment made by the Employer.
ARTICLE V. GENERAL DUTIES
5.01 It shall be the duty of the Trustees to hold title to assets held in respect of the Plan in the
Trustee's name as directed by the Employer or its designees in writing. The Trustee shall not be
under any duty to compute the amount of contributions to be paid to the Trust by the Employer
or to take any steps to collect such amounts as may be due to be held in trust under the Plan. The
Trustees shall not be responsible for the custody, investment, safekeeping or disposition of any
assets comprising the Trust. to the extent such functions are performed by the Employer or the
Provider, or both.
5.02 It shall be the duty of the Employer. subject to the provisions of the Plan, to pay over to
the Provider or other person designated hereunder from time to time all Employer contributions
and other contributions provided for under the Plan and the Adoption Agreements. It shall be the
duty of the Provider to inform the Employer and the Trustees in writing as to the identity and
value of the assets titled in the Trustees' name hereunder and to keep accurate books and records
with respect to the Accounts of Plan Participants.
ARTICLE VI. INVESTMENTS
6.01 The Employer may appoint one or more Providers to manage and control all or part of the
assets of the Trust and the Employer shall notify the Trustees in writing of any such
appointment.
6.02 The Trustees shall not have any discretion or authority with regard to the investment of
the Trust and shall act solely as directed Trustees of the assets of which it holds title. To the
extent directed by the Employer (or Participants or Covered Persons to the extent provided
herein) the Trustees are authorized and empowered with the following powers, rights and duties,
each of which the Trustees shall exercise in a non discretionary manner:
(a) To cause bonds, securities, or other investments to be registered in its name as the
Trustees or in the name of a nominee, or to take and keep the same unregistered;
6)
To employ such agents and legal counsel as it deems advisable or proper in
connection with its duties and to pay such agents and legal counsel a reasonable
fee. "l he Trustees shall not he liable for the acts of such agents and counsel or for
the acts done in good faith and in reliance upon the advice of such agents and
le counsel. provided it has used reasonable care in selecting such agents and
legal counsel:
O To exercise where applicable and appropriate any rights of ownership in any
contracts of insurance in which any part of the Trust may be invested and to pay
the premiums thereon; and
(d) At the direction of the Employer (or Participants or Covered Persons to the extent
provided herein. or the investment manager, as the case may be) to sell, write
options on, convey or transfer, invest and reinvest any part thereof in each and
every kind of property, whether real, personal or mixed, tangible or intangible,
whether income or non income producing and wherever situated, including but
not limited to. time deposits (including time deposits in the Provider or its
affiliates. or any successor thereto, if the deposits bear a reasonable rate of
interest), shares of common and preferred stock, mortgages, bonds, leases, notes,
debentures. equipment or collateral trust certificates, rights, warrants, convertible
or exchangeable securities and other corporate, individual or government
securities or obligations, annuity. retirement or other insurance contracts, mutual
funds (including funds for which the Provider or its affiliates serve as investment
advisor. custodian or in a similar or related capacity), or in units of any other
common. collective or commingled trust fund.
6.03 Notwithstanding anything to the contrary herein, the assets of the Plan shall be held by
the Trustees as title holders only. Persons holding custody or possession of assets titled to the
Trust may include the Employer. the Provider, the investment manager, and any agents and
subagents, but not the Trustees. The Trustees shall not be responsible or liable for any loss or
expense which may arise from or result from compliance with any direction from the Employer.
the Provider, the investment manager, or such agents to take title to any assets nor shall the
Trustees be responsible or liable for any loss or expense which may result from the Trustees'
refusal or failure to comply with any direction to hold title, except if the same shall involve or
result from the Trustees' breach of fiduciary duty or intentional misconduct. The Trustees may
refuse to comply with any direction from the Employer. the Provider, the investment manager, or
such agents in the went that the Trustees. in their sole and absolute discretion, deem such
direction illegal.
6.04 The Employer hereby agrees to indemnify and holds the Trustees harmless from any and
all actions. claims, demands, liabilities. losses, damages or reasonable expenses of whatsoever
kind and nature in connection with or arising out of (i) any action taken or omitted in good faith
by the "Trustees in accordance with the directions of the Employer or its agents and subagents
hereunder, or (ii) any disbursements of any part of the Trust made by the Trustees in accordance
with the directions of the Employer. the Plan Administrator or the Claims Administrator, or (iii)
an action taken by or omitted in good faith by the Trustees with respect to an investment
managed by an investment manager in accordance with any direction of the investment manager
or any inaction with respect to any such investment in the absence of directions from the
in\ estment manager. Notwithstanding anything to the contrary herein, the Employer shall have
no responsibility to the Trustees under the foregoing indemnification if the Trustees fail
intentionally or recklessly to perform any of the duties undertaken by them under the provisions
of this Trust.
6.05 Notwithstanding anything to the contrary herein, the Employer or, if so designated by the
Employer, the Provider and the investment manager or another agent of the Employer, will be
responsible for valuing all assets so acquired for all purposes of the Trust and of holding,
inti esting, trading and disposing of the same. The Employer will indemnify and hold the
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Trustees harmless against any and all claims, actions, demands, liabilities, losses, damages, or
expenses of whatsoever kind and nature, which arise from or are related to any use of such
valuation by the Provider or holding. trading, or disposition of such assets.
ARTICLE VII. CONTRIBUTIONS
7.01 Employer Contributions The Employer shall contribute to the Trust such amounts as
specified in the Plan. the Adoption Agreements, applicable City policies and collective
bargaining agreements.
7.02 Participant Contributions Participants may not make after tax contributions to this Trust.
7.03 Accrued Leave The Employer shall make contributions to this Plan that are attributable
to reductions in the amount of a Participant's accrued sick leave, vacation leave, paid leave,
holiday pay or other type of accrued leave (collectively, "Accrued Leave as is required under
the terms of the Plan, the Adoption Agreements, applicable City policies and collective
bargaining agreements. The Plan shall provide a formula for determining the value of the
contribution to be made on behalf a participant pursuant to a reduction in accrued leave.
(a) under the terms of the Plan. neither the Participant nor any other person shall be
entitled to any cash payment that is attributable to the amounts credited to the
Participant's Account.
7.04 Accounts The Account of a Participant shall be credited with the Employer contributions
and other contributions that are paid to the Trust on behalf of such Participant. Amounts held in
the Trust that are attributable to a Participant's Account shall be invested in Investment Funds as
directed by the Participant (or. after the Participant's death, by the Covered Persons) from among
the Investment Funds selected by the Employer. The Participant's Account shall be adjusted
upward and downward to reflect the investment income and realized and unrealized gains and
losses attributable to such investments of the Trust. The Account shall also be debited for any
fbrfeitures allocable thereto. All Forfeitures shall either be expended for the payment of Plan
expenses or allocated to the Accounts other Participants in accordance with the provisions of this
Section.
(a)
If a Forfeiture is attributable to the Account of a Participant who, at the time of
retirement or other termination of employment, was not included in a unit of
employees that was covered by a collective bargaining agreement, the Forfeiture
shall he used for the payment of Plan expenses unless, at the time of the
Forfeiture. any applicable City policies established for non bargaining unit
employees, including without limitation, Personnel Rules 23.7 Retirement
Health Saving Plan and 33 Post Retirement Medical Benefits, provide for an
allocation of the Forfeiture to the Accounts of some or all of the other Plan
Partici pants.
(b) If a Forfeiture is attributable to the Account of a Participant who, at the time of
retirement or other termination of employment, was included in a unit of
employees that was covered by a collective bargaining agreement, the Forfeiture
shall be used for the payment of Plan expenses unless, at the time of the
Forfeiture, the provisions of a collective bargaining agreement that covers the
employees who are employed within the unit of employees that previously
employed the Participant provide for an allocation of the Forfeiture to the
Accounts of some or all of the other Plan Participants.
7.05 Receipt of Contributions The Employer or, if so designated by the Employer, the
Provider or investment manager or another agent of the Employer, shall receive all contributions
paid or delivered to it hereunder and shall hold, invest, reinvest and administer such
contributions pursuant to this Declaration, without distinction between principal and income.
The Trustees shall not be responsible for the calculation or collection of any contribution under
the Plan. but shall hold title to property received in respect of the Plan in the Trustees' name as
directed by the Employer or its designee pursuant to this Declaration.
7 0 No amount in any Account maintained under this Trust or otherwise payable as a Benefit
under the Plan shall be subject to transfer, assignment, or alienation, whether voluntary or
im oluntarv, in favor of any creditor, transferee. or assignee of the Employer, the Trustees, any
Participant. or Covered Person or any other person.
Notwithstanding the foregoing, a valid domestic relations order issued by a court of competent
jurisdiction may require that all or a portion of the nonforfetiable Account balance of a
Participant be used to reimburse the Eligible Medical Expenses of an "Alternate Payee Any
such order may provide that such reimbursement shall be provided directly from the Participant's
Account or that all or a portion of the Participant's Account shall segregated into a separate
account and used solely for such purposes. For this purposes, an Alternate Payee may be a
Spouse or former Spouse of a Participant, or a child of a Participant.
7.( }7 l ipon the satisfaction of all liabilities under the Plan to provide Benefits, any amount of
Employer contributions, plus accrued earnings thereon, remaining in the Plan shall be returned to
the Employer.
ARTICLE VIII. OTHER PLANS
8.01 I f the Employer hereafter adopts one or more other plans providing medical or other
benefits and designates the Trust hereby created as part of such other plan, the Employer or, if so
designated by the Employer, the Provider or an investment manager or another agent of the
Employer shall, subject to the terms of this Declaration, accept and hold hereunder contributions
to such other plans. In that event (a) the Employer or, if so designated by the Employer, the
Provider or an investment manager or another agent of the Employer, may commingle for
investment purposes the contributions received under such other plan or plans with the
contributions previously received by the Trust. but the books and records of the Employer or, if
so designated by the Employer, the Provider or an investment manager or another agent of the
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Employer. shall at all times show the portion of the Trust Fund allocable to each plan; (b) the
term "Plan" as used herein shall be deemed to refer separately to each other plan; and (c) the
term "Employer" as used herein shall be deemed to refer to the person or group of persons which
have been designated by the terms of such other plans as having the authority to control and
manage the operation and administration of such other plan.
ARTICLE IX. DISBURSEMENTS AND EXPENSES
9.01 The Employer or its designee shall make such payments from the Trust at such time to
such persons and in such amounts as shall be authorized by the provisions of the Plan.
9.02 All payments of Benefits under the Plan shall be made to Covered Persons exclusively
from the assets of the Trust that are properly attributable to the Account of the relevant
Participant and no person shall be entitled to look to any other source for such payments.
9.03 The Employer and Provider, as authorized by the Employer, may be reimbursed for
expenses reasonably incurred by them in the administration of the Plan and Trust. All such
expenses, including. without limitation, reasonable fees of accountants and legal counsel to the
extent not otherwise reimbursed, shall constitute a charge against and, unless otherwise paid by
the Employer. shall he paid from the Trust upon the direction of the Employer.
ARTICLE X. ACCOUNTING
10.01 The Trustees shall not be required to keep accounts of the investments, receipts,
disbursements. and other transactions of the Trust, except as necessary to perform its title
holding function hereunder. All accounts. books, and records relating thereto shall be
maintained by the Provider.
10.12 As promptly as possible following the close of each quarter, the Provider shall file with
the Employer a written account setting forth assets titled to the Trust.
ARTICLE XI. MISCELLANEOUS PROVISIONS
1 1.01 Neither the Trustees nor any affiliate thereof shall be required to give any bond or to
qualify before. be appointed by. or account to any court of law in the exercise of its powers
hereunder
11.02 No person transferring title or receiving a transfer of title from the Trustees shall be
obligated to look to the propriety of the acts of the Trustees in connection therewith.
11.03 The Employer may engage the Provider as its agent in the performance of any duties
required of the Employer under the Plan, but such agency shall not be deemed to increase the
responsibility or liability of the Trustees under this Declaration.
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1 1,04 The Employer shall have the right at all reasonable times during the term of this
Declaration and for three (3) years after the termination of this Declaration to examine, audit,
inspect, review, extract information from. and copy all books, records, accounts, and other
documents of the Trustees and Provider relating to this Declaration and the Trustees' and
Provider's performance hereunder.
ARTICLE XII. AMENDMENT AND TERMINATION
12.01 The Employer reserves the right to alter, amend, or terminate this Declaration at any time
for any reason without the consent of the Trustees or any other person, provided that no
amendment affecting the rights. duties, or responsibilities of the Trustees shall be adopted
without the execution of the Trustees to the amendment. Any such amendment shall become
effective as of the date provided in the amendment, if requiring the Trustees' execution, or on
delivery of the amendment to the Trustees. if the Trustees' execution is not required.
12 02 Upon termination of this Declaration and upon the satisfaction of all liabilities under the
Plan to provide such benefits, any amount of Employer contributions, plus accrued earnings
thereon, remaining in such separate Accounts must, under the terms of the Plan, be returned to
the Employer.
ARTICLE XIII. TERMINATION OF THE TRUSTEE RELATIONSHIP
1 3.01 The Employer reserves the right to discharge the Trustee for any or no reason, at any time
by giving ninety (90 days' advance written notice.
13.02 Trustees other than members of the Compensation Committee have the right to resign at
any time by giving ninety (90) days' advance written notice to the Employer.
13.03 In the event of discharge or resignation of a Trustee, the Employer may appoint a
successor Trustee who shall succeed to all rights, duties, and responsibilities of the former
Trustee under this Declaration, and the terminated Trustee shall be deemed discharged of all
duties under this Declaration and responsibilities for the Trust.
ARTICLE XIV. LIMITED EFFECT OF PLAN AND TRUST
14.01 Neither the establishment of the Plan and the Trust or any modification thereof, the
creation of any fund or account. nor the payment of any benefits, shall be construed as giving to
any person covered under the Plan or other person any legal or equitable right against the
Trustees, the Plan Administrator, the Employer or any officer or employee thereof, except as
may otherwise be expressly provided in the Plan or in this Declaration.
ARTICLE XV. PROTECTIVE CLAUSE
15.01 Neither the Plan Administrator, the Employer, nor the Trustees shall be responsible for
the validity of any contract of insurance or other arrangement maintained in connection with the
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Plan, or for the failure on the part of the insurer or provider to make payments provided by such
contract. or for the action of any person which may delay payment or render a contract void or
unenforceable in whole or in part.
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IN WITNESS WHEREOF, the Employer and the Trustees have executed this Declaration, as of
the date first hereinabove mentioned.
Bv
By:
By:
By:
By:
By:
ACKNOWLEDGED AND AGREED TO BY THE FOLLOWING TRUSTEES:
HE Y W,STERN
C
WILLIAM SWEENE
GREG G RCIA
TOM HEILIGENTH
OHN HIT
ELISA STIPKO.f C
LINDA ANDAL, CITY CLERK
APPROVED AS TO FORM:
CRISTINA L. LLEY CITY ATTORNEY
Title: MAYOR
Title: HUMAN RESOUCES
DIRECTOR/PLAN
ADMINISTRATOR
Title: CITY TREASURER
Title: FINANCE DIRECTOR
Title: CITY MANAGER'S APOINTEE
Title: PARTICIPATING EMPLOYEE
L
Title: PARTICIPATING EMPLOYEE
SES W 1 SON, ASSISTANT CITY ATTORNEY
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Title: PARTICIPATING EMPLOYEE
ROTATING DEPARTMENT
MEMBER