2003-150RESOLUTION NO. 2003R- 110
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING
RESOLUTION NO. 2002R-195 WHICH ADOPTED THE ANAHEIM RETIREMENT
HEALTH SAVINGS PLAN.
WHEREAS, the City of Anaheim has previously adopted the City of Anaheim
Retirement Health Savings Plan (the "Plan"); and
WHEREAS, the Plan provides that it may be amended from time to time; and
WHEREAS, it is desirable to amend the plan to clarify certain provisions regarding the
payment of Plan benefits after the death of a Participant, and to clarify the Deferred Compensation
Committee's duties and responsibilities;
NOW THEREFORE, Section 3.01(b) of the Plan is hereby amended and restated as
follows:
(b) Upon the death of the Participant, Covered Persons shall be eligible to utilize the Account
balance in the following order:
(i) The Account may first 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.
(ii) If there are no persons described in clause (i) above, or all persons described in
clause (i) above die before the amount credited to the deceased Participant's
Account is exhausted, the balance in the deceased Participant's Account may be
used by any person who is a Covered Dependent hereunder because he or she is a
child of the deceased Participant, but who was not, at the date of the Participant's
death, 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.
(iii) If there are no persons described in clauses (i) and (ii) above, or all persons
described in clauses (i) and (ii) above die before the amount credited to the
deceased Participant's Account is exhausted, the balance in the Account may be
used by any person who is a Covered Dependent hereunder because he or she is a
designated beneficiary of the deceased Participant's Account. The Account may
be used by any of such persons until such time as the amounts credited to the
Account are exhausted.
If a beneficiary has been designated to use the Account after the death of a Participant,
Covered Spouse and/or Covered Dependents, that beneficiary shall be entitled to elect to
have the Account used by another beneficiary in the case of his or her death. If there are
no beneficiaries that have been designated after the deaths of all persons who have
become entitled to use an Account, the remaining amount in the Account shall be
forfeited and used to offset Plan expenses.
NOW THEREFORE, Section 2.09 and Sections 9.13 of the Plan is hereby amended and
restated as follows:
2.09 "Deferred Compensation Committee" mean the Committee, consisting of the Plan
Administrator, as Chairperson; the City Manager or his appointee; the Finance Director or his
appointee; the Human Resources Director or his appointee; and a Participating Employee.
9.13 Miscellaneous
The Deferred Compensation Committee, as defined in Article 2.09 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
1. Authorize, by resolution, the Health Saving and Reimbursement Plan in
compliance with Section 105(c) and Section 106 of the Code.
2. Approves additions or removal of Plan Providers, as well as approves major
amendments to approved plans.
3. Authorize the administration of the Plan.
B. PLAN ADMINISTRATOR
Day to day administration, including approval of Plan enrollment forms.
2. Authority to sign all legal agreements with approved Plan
Providers, including minor Plan amendments.
3. Communicating the Retirement Health Savings Program to employees.
5. Maintain Retirement Health Savings Programs Procedures Manual and
related Plan documents.
6. Coordinate Plan Provider /City employee meeting schedule.
7. The Plan Administrator shall have the right to delegate any of the above
duties to staff.
C. DEFERRED COMPENSATION COMMITTEE
Conduct reviews of the Retirement Health Savings Program and make
recommendations as necessary.
2. Review Plan Providers performance and assist in the Plan Administrator in
developing recommendations on adding, deleting or amending Plan Providers
to the City Council.
3. Review and make determinations on adding, deleting or amending Investment
Options.
4. The Committee shall have the power to appoint subcommittees.
D. SUBCOMMITTEE
Performs task within the scope of the Committee's responsibility.
2. The Subcommittee makes reports and recommendations for consideration to the
Committee.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Anaheim that the
Retirement Health Savings Plan be amended and restated. A copy of the Plan as amended is
attached as Exhibit "A ".
BE IT FURTHER RESOLVED that the effective date of the said amendment to
Resolution No. 2002R -195 be dated and effective retroactively to July 22, 2002.
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 15th day of July 2003.
BY: CURT PINKE,14AYOR
ATTEST:
r ,:
/��
''SHERYL A SC ROEDER, CITY CLERK
APPROVED AS TO FORM:
JACK L. WHITE, CITY ATTORNEY
Y:` LARRY NEWBERRY
SENIOR ASSISTANT CITY ATTORNEY
EXHIBIT A
7/15/03
CITY OF ANAHEIM
HEALTH SAVINGS
AND REIMBURSEMENT
PLAN
CAO- 46230- v.2rhs -final plan
10778.00001
TABLE OF CONTENTS
ARTICLEI PREAMBLE ................................................................. ...............................
1.01 Establishment of Plan ...................................................... ...............................
1 .02 Purpose of Plan ................................................................ ...............................
ARTICLE II DEFINITIONS ............................................................ ...............................
2.01 "Account" ........................................................................ ...............................
2.02 " Benefits" ......................................................................... ...............................
2.03 "Claim Administrator" ..................................................... ...............................
2.04 " Code" .............................................................................. ...............................
2.05 "Covered Dependent ...................................................... ...............................
2.06 "Covered Participant" ...................................................... ...............................
2.07 "Covered Person" ............................................................. ...............................
2.08 "Covered Spouse" ............................................................ ...............................
2.09 "Deferred Compensation Committee" ............................. ...............................
2.10 " Dependent" ..................................................................... ...............................
2.11 "Eligible Employee" ........................................................ ...............................
2.12 "Eligible Medical Expenses" ........................................... ...............................
2.13 " Employee" ...................................................................... ...............................
2.14 " Employer ...................................................................... ...............................
2.15 " Participant" ..................................................................... ...............................
2.16 "Plan Administrator ......................................................... ...............................
2.17 "Plan Year" ...................................................................... ...............................
2.18 "Provider" ........................................................................ ...............................
2.19 "Spouse" .......................................................................... ...............................
ARTICLE III PARTICPATION ..................................................... ...............................
3.01 Participation .................................................................... ...............................
ARTICLE IV PLAN FUNDING ...................................................... ...............................
4.01 Integral Part Trust ......................................................... ...............................
4.02 Retirement Health Savings Plan Accounts ................... ...............................
ARTICLE V PAYMENT OF BENEFITS ............................... ...............................
5.01 Eligibility for Benefits ..................................................... ...............................
5.02 Claims for Benefits .......................................................... ...............................
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
2
3
3
3
3
3
3
3
3
3
4
4
5
5
5
5
i
ARTICLE VI PLAN ADMINISTRATION ..................................... ............................... 6
6.01 Allocation of Authority .................................................... ............................... 6
6.02 Provision for Third -Party Plan Service Providers ........... ............................... 6
6.03 Several Fiduciary Liability .............................................. ............................... 7
6.04 Compensation of Plan Administrator .............................. ............................... 7
6.05 Bonding ............................................................................ ............................... 7
6.06 Payment of Administrative Expenses .............................. ............................... 7
6.07 Timeliness of Payments ................................................... ............................... 7
6.08 Annual Statements ........................................................... ............................... 7
ARTICLE VII CLAIMS PROCEDURE ......................................... ............................... 7
7.01 Procedure if Benefits are Denied Under the Plan ............ ............................... 7
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
7.05 Preservation of Other Remedies ...................................... ............................... 9
ARTICLE VIII AMENDMENT OR TERMINATION OF PLAN .............................. 9
8.01 Permanency ...................................................................... ............................... 9
8.02 Employer's Right to Amend ............................................ ............................... 9
8.03 Employer's Right to Terminate ....................................... ............................... 9
ARTICLE IX GENERAL PROVISIONS ....................................... ............................... 9
9.01 No Employment Rights Conferred .................................. ............................... 9
9.02 Nonalienation of Benefits and Accounts ......................... ...............................
9
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 ....................................................................... ...............................
10
9.08 Multiple Functions ........................................................... ...............................
11
9.09 Gender and Number ......................................................... ...............................
11
9.10 Headings .......................................................................... ...............................
11
9.11 Applicable Laws .............................................................. ...............................
11
9.12 Severability ...................................................................... ...............................
11
9.13 Miscellaneous .......................................... ...............................
11
ii
ARTICLE I
PREAMBLE
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 as
follows:
1.01 Establishment of Plan
The Employer named above hereby establishes a Retirement Health Savings Plan effective as of
the 1 st day of July, 2002. The terms of this Plan are generally contained in this Plan Document.
However, the terms of this Plan Document may be modified by one or more "Adoption
Agreements" established by the Employer in conjunction with this Plan. In addition, this Plan is
designed to be funded through an "Integral Part Trust." The terms of that trust are considered
part of this Plan and may likewise supplement and modify the terms of this Plan document.
1.02 Purpose of Plan
This Plan has been established to allow certain employees and 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.
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" means the bookkeeping account maintained on behalf of a Participant pursuant
to Section 3.02.
2.02 "Benefits" means any amounts paid to reimburse a Covered Person for Eligible Medical
Expenses incurred by such person.
2.03 "Claims Administrator" means the Third Parry Administrator Zenith Administrators, Inc.
or any other Claims Administrator appointed by the provider with the consent of the Plan
Administrator.
2.04 "Code" means 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" includes a Dependent of a Covered Participant, a person who is a
child of a Covered Participant at the date of the Covered Participant's death, or a person who, in
accordance with the Adoption Agreement for the Integral Part Trust (referred to in Section 4.01),
is otherwise a designated Beneficiary following the death of a Covered Person.
2.06 "Covered Participant" means a Participant who is either:
(a) a former Employee;
(b) an Employee who:
(i) is a participant in a group health plan of the Employer,
(ii) has attained age 50, and
(iii) has at least 5 years of continuous employment with the Employer; or
(c) 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" includes a Covered Participant, a Covered Spouse and a Covered
Dependent.
2.08 "Covered Spouse" includes 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" mean the Committee, consisting of the Plan
Administrator, as Chairperson; the City Manager or his appointee; the Finance Director or his
appointee; the Human Resources Director or his appointee; and a Participating Employee.
2.10 "Dependent" means any individual who is a dependent of a Participant within the meaning
of Code Section 213.
2.11 "Eligible Employee" means any Employee who meets the eligibility requirements for the
Plan that are outlined in the Employer's Personnel Rule 23 and/or Letters of Understanding
and/or Memorandums of Understanding with the collective bargaining representative for such
Employee.
2.12 "Eligible Medical Expenses" means medical expenses that are (i) incurred by a Covered
Person, and (ii) described in Section 213 of the Code; provided, however, that notwithstanding
the foregoing:
(a) the term "Eligible Medical Expenses" shall not include any amounts paid by a
Covered Person as premiums or employee contributions to the group health care
plan of another employer;
2
(b) with respect to a Covered Participant described in Section 2.06(b), the term
"Eligible Medical Expenses" shall only include the cost of premiums payments
and/or employee contributions that are required as a condition of such person
being covered under a group health care plan of the Employer; and
(c) the term "Eligible Medical Expenses" may be further restricted for a particular
group or groups of Covered Person as provided under an Adoption Agreement.
2.13 "Employee" means any individual who is a common law employee of the Employer and
who is considered to be in a legal employer- employee relationship with the Employer for federal
withholding tax purposes.
2.14 "Employer" means the City of Anaheim.
2.15 "Participant" is described in Article III.
2.16 "Plan Administrator" means the City Treasurer (unless another person or entity is
designated by the City Council) who has the authority and responsibility to manage and direct
the operation and administration of the Plan.
2.17 "Plan Year" means the calendar year except the first year which begins on the effective
date of July 1" 2002 and ends on the 31" day of December 2002.
2.18 "Provider" means the ICMA Retirement Corporation.
2.19 "Spouse" means the 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 213.
All 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 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, Covered Persons shall be eligible to utilize the Account
balance in the following order:
3
(i) The Account may first 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.
(ii) If there are no persons described in clause (i) above, or all persons described in
clause (i) above die before the amount credited to the deceased Participant's
Account is exhausted, the balance in the deceased Participant's Account may be
used by any person who is a Covered Dependent hereunder because he or she is a
child of the deceased Participant, but who was not, at the date of the Participant's
death, 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.
(iii) If there are no persons described in clauses (i) and (ii) above, or all persons
described in clauses (i) and (ii) above die before the amount credited to the
deceased Participant's Account is exhausted, the balance in the Account may be
used by any person who is a Covered Dependent hereunder because he or she is a
designated beneficiary of the deceased Participant's Account. The Account may
be used by any of such persons until such time as the amounts credited to the
Account are exhausted.
If a beneficiary has been designated to use the Account after the death of a Participant,
Covered Spouse and/or Covered Dependents, that beneficiary shall be entitled to elect to
have the Account used by another beneficiary in the case of his or her death. If there are
no beneficiaries that have been designated after the deaths of all persons who have
become entitled to use an Account, the remaining amount in the Account shall be
forfeited and used to offset Plan expenses
(c) A Participant shall be an Active Participant in the Plan as long as the Participant is an
Eligible Employee. Active Participation in the Plan shall cease of the date that a
Participant ceases to be an Eligible Employee.
ARTICLE IV
PLAN FUNDING
4.01 Integral Part Trust
This Plan shall be funded solely through the "Integral Part Trust" that is being established in
conjunction with the adoption of this Plan. The Employer shall make contributions to the Trust
as is required under the terms of the Adoption Agreements, any applicable City policies
established for non - bargaining unit employees and the terms of any applicable collective
bargaining agreements.
in
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, the Adoption Agreements, any applicable City policies
and the terms of any applicable collective bargaining agreements:
(a) 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
(c) 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
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 be
used for other Plan purposes.
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 written claim for
benefits to the Claims Administrator on a form 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.
5
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:
(a) 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
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
anv 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.
C�
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.
6.06 Payment 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 be 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 Annual Statements
The Provider and/or Claims Administrator shall furnish each Participant with an annual
statement of his medical and dental expense reimbursement account within ninety (90) days after
the close of each Plan Year.
ARTICLE VII
CLAIMSPROCEDURE
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 in writing on a form
provided by the Claims Administrator and delivered to the Claims Administrator, in person or by
7
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.
7.02 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) 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
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 be subject to the Employer's right to amend or terminate the Plan, as provided in
Sections 8.02 and 8.03, below.
8.02 Employer's Right to Amend
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.
8.03 Employer's Right to Terminate
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.
9.02 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.
0]
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 be void.
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.
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 is authorized to declare a forfeiture to the Plan of all Plan payments,
distributions and any income or other increment thereon if the Covered Person cannot be found
and has not, within three years after it becomes payable or distributable, accepted the payment or
distribution, corresponded in writing concerning the payment or distribution, or otherwise
indicated an interest as evidenced by a memorandum or other written record on file with the Plan
Administrator. All forfeitures shall be used to offset future Plan expenses.
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.
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
10
gross income for federal or state income tax purposes; and the Employer or Plan Administrator
shall withhold taxes from reimbursements and report reimbursements as taxable income to the
extent that that the Employer or Plan Administrator 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
Masculine pronouns include the feminine as well as the neuter gender, and the singular shall
include the plural, unless indicated otherwise by the context.
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.
9.12 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, as defined in Article 2.09 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.
2. Approves additions or removal of Plan Providers, as well as approves major
amendments to approved plans.
Authorize the administration of the Plan.
11
B. PLAN ADMINISTRATOR
Day to day administration, including approval of Plan enrollment forms.
2. Authority to sign all legal agreements with approved Plan
Providers, including minor Plan amendments.
3. Communicating the Retirement Health Savings Program to employees.
5. Maintain Retirement Health Savings Programs Procedures Manual and
related Plan documents.
6. Coordinate Plan Provider /City employee meeting schedule.
7. The Plan Administrator shall have the right to delegate any of the above
duties to staff.
C. DEFERRED COMPENSATION COMMITTEE
1. Conduct reviews of the Retirement Health Savings Program and make
recommendations as necessary.
2. Review Plan Providers performance and assist in the Plan Administrator in
developing recommendations on adding, deleting or amending Plan Providers
to the City Council.
3. Review and make determinations on adding, deleting or amending Investment
Options.
4. The Committee shall have the power to appoint subcommittees.
D. SUBCOMMITTEE
1. Performs task within the scope of the Committee's responsibility.
2. The Subcommittee makes reports and recommendations for consideration to the
Committee.
12
IN WITNESS WHEREOF, we have executed this Plan the date and year first written above.
CITY OF ANAHEIM
(Employer)
BY: CURT PRINGLE, MAYOR
ATTEST, 4-
SHE LL SCHROEDER, CITY CLERK
APPROVED AS TO FORM:
JACK .WHITE. CITY Ate(
Y NEWBERRY
SENIOR ASSISTANT CITY ATTORNEY
13
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, SHERYLL SCHROEDER, City Clerk of the City of Anaheim, do hereby certify that the foregoing
Resolution No. 2003R -150 was introduced and adopted at a regular meeting provided by law, of
the Anaheim City Council held on the 15th day of July, 2003, by the following vote of the members
thereof:
AYES: MAYOR/COUNCIL MEMBERS:
NOES: MAYOR/COUNCIL MEMBERS:
ABSTAINED: MAYOR/COUNCIL MEMBERS:
ABSENT: MAYOR/COUNCIL MEMBERS
Pringle, Tait, Chavez, Hernandez, McCracken
None
None
None
Y CLEW OF THE CITY OF ANAHEIM
(SEAL)