98-244RESOLUTION NO. 98R-2~a
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ANAHEIM ESTABLISHING A DEFERRED
COMPENSATION PLAN TRUST AS REQUIRED BY THE
INTERNAL REVENUE CODE
WHEREAS, the Small Business Job Protection Act of 1996 ("SBJPA") and the Tax Payer
Relief Act of 1997 ("TRA '97") added a new subsection (g) to Section 457 of the Internal Revenue
Code (Code) to provide that all assets and income under a Section 457 (b) plan that is maintained by
a state or local government employer must be held in trust for the exclusive benefit of plan
participants and their beneficiaries; and
WHEREAS, Section 457 of the Code applies to nonqualified deferred compensation plans
established by state and local governments and tax-exempt employers; and
WHEREAS, an eligible employer that is a state or local government must amend its Section
457 (b) plan to comply with the mandatory trust requirement of Section 457 (g); and
WHEREAS, the eligible government employer must adopt a trust to hold all assets and
income of the Section 457 (b) plan; and
WHEREAS, the Trust must be a valid instrument under state law.
WHEREAS, recent legislative changes require that a Trust be established by January 1, 1999.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Anaheim that
the City of Anaheim Deferred Compensation Plan Trust (hereinafter called "PLAN TRUST")
attached as Exhibit "C" and incorporated herein is hereby adopted.
BE IT FURTHER RESOLVED by the City Council of the City of Anaheim that all property
and rights purchased with amounts of compensation deferred pursuant to the Plan, shall be held in
trust for the exclusive benefit of participants and beneficiaries under the Plan.
BE IT FURTHER RESOLVED by the City Council of the City of Anaheim that the effective
date of this PLAN TRUST shall be January 1, 1999.
BE IT FURTHER RESOLVED by the City Council of the City of Anaheim that the PLAN is
intended to qualify as an eligible deferred compensation plan under IRC Section 457.
EXHIBIT uC"
CITY OF ANAHEIM
SECTION 457 DEFERRED COMPENSATION PLAN TRUST
ARTICLE I - CREATION OF TRUST
1.1 Effective Date. The City of Anaheim Section 457 Deferred
Compensation Plan Trust shall be effective on January 1, 1999. Funding
of the Trust with money or other assets constituting trust assets shall
occur as soon as is pracUcal following the establishment of the Trust.
1.2 Name of Trust. The name of the trust created by this instrument
shall be the City of Anaheim Section 457 Deferred Compensation Plan
Trust.
1.3 Purpose of Trust. This Trust has been established to fulfill the
obligations of the City of Anaheim to comply with the requirements of
Section 457 (g) of the United States Internal Revenue Code of 1986, as
amended. Specifically, assets of the Trust are to be held for the exclusive
benefit of Participants and Beneficiaries under the Plans (as defined
below), and shall not be available for use by the City of Anaheim or
creditors of the City of Anaheim.
1.4 Selection of Trustee. The members of the Deferred Compensation
Committee of the City of Anaheim shall serve in the capacity of Trustee.
The three Deferred Compensation Committee members collectively shall
serve as the Trustees of the Trust.
ARTICLE II - TRUST ASSETS
2.1 Trust Assets. The Trust assets shall consist of all contributions and
earnings thereon made under the Deferred Compensation Plan and the
Deferred Compensation Plan for Employees Not Covered By CALPERS
(collectively hereinafter referred to as "the Plan,") less payments made
under the terms of the Plan including fees and expenses. If the assets of
this Trust are invested in an annuity contract or custodial account, the
Trust shall own the contract or account.
2.2 Trust Fund. No part of the Trust Fund shall be used for, or diverted
to, purposes other than for the exclusive benefit of the participants,
former participants with an interest in the Plan, or beneficiaries of a
deceased participant having an interest in the Fund at the death of the
participant.