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1976-233RESOLUTION NO. 76R- ' 233 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING AND ADOPTING A REVISED EMPLOYEESI'DEFERRED COMPENSATION PLAN FOR EMPLOYEES OF THE CITY OF ANAHEIM. WHEREAS., the City of Anaheim has in its. employ employees who are and will be rendering valuable services to the City; and WHEREAS, said employees may desire to defer income until retirement for the purpose of deferring Federal and State -Income Taxea6n said'income;�and `WHEREAS., the City Council of the City of Anaheim did heretofore 'consider the establishment of a Deferred Compensation Plan for the said employees as being in the best interests of the City, and did by Resolution No. 75R-,431 approve an Employeest Deferred Compensation Plan, effective August 5S 1975, and authorize the execution of a Deferred Compensation Deposit Agreement with Glendale Federal Savings and Loan Association,; and WHEREAS the United States Internal Service has recommended certain -revisions to said Employeest Deferred Compensation Plan in order to qualify said Planfor an Internal Revenue Service Ruling; and WHEREAS, the'City Council finds that it would be for the benefit -and in the -best interests of the City to approve said revised Deferred Compensation Plan this day submitted to the City. Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Anaheim that the City of Anaheim approve and adopt said revised Employees' Deferred Compensation Plan this day submitted to the `City Council.,, which is attached -hereto as Exhibit"A% and that said revised Employee's Deferred Compensation Plan be., and the same is hereby., approved and adopted., to remain in effect until terminated by further resolution of the City Council. THE FOREGOING RESOLUTION is approved and signed by me this 4th day of May 19760 Aff A xv rrrMV-hV AMARRTM ATTEST: CITY CLERK OF THEITY OF ANAHEIM WPH: j h STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ANAHEIM ) I, ALOHA M. HOUGARD, City Clerk of the City of Anaheim, do hereby certify that the foregoing Resolution No. 76R-233 was intro- duced and adopted at a regular meeting provided by law, of the City Council of the City of Anaheim held on the 4th day of May, 1976,, by the following vote of the members thereof: AYES: COUNCIL MEMBERS: Ka:ywood, Seymour, Kott, Roth and Thom NOES: COUNCIL MEMBERS: Norte ABSENT: COUNCIL MEMBERS: None AND I FURTHER CERTIFY that the Mayor of the City of Anaheim approved and signed said Resolution No. 76R-233 on the 4th day of May, 1976. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the City of Anaheim this 4th day of May, 1976. CITY,CLERK OF THE CITY OF ANAHEIM (SEAL) I, ALONA M. HOUGARD, City ,Clerk of the City of Anaheim, do hereby certify that the foregoing is the original of Resolution No. 76R-233 duly passed and adopted by the Anaheim City Council on May 4, 1976. City Clerk- aoqoaaTG aousul j a9anssall lauuosaaa CITY OF ANAHEIM EMPLOYEES' DEFERRED COMPENSATION PLAN SECTION 1. GFS 111-76 NAME: The name of this Plan is the City of Anaheim Employees' Deferred Compensation Plan (hereinafter referred to as the "Plan"). SECTION 2. PURPOSE: The purpose of this Plan is to enable Employees of the City of Anaheim to defer portions of their compensation and to provide retirement, disability and death benefits. SECTION 3. DEFINITIONS: For the purpose of this Plan, certain words or phrases used herein will have the following meanings, 3.1 "Employer means the Public Agency named in Section 1 herein above. 3.2 "Employee" means any officer or employee of the Employer named in Section 1. 3.3 "Participant" means any eligible Employee who elects, pursuant t© the Plan, to defer a portion of his/her compensation, and who fulfills the requirements for participation in the Plan. 3.4 "Participation Agreement" shall mean the written agreement by which an Employee elects to become a Participant under the Plan. 3.5 "Beneficiary" may be any person, .trust, corporation or firm, or the estate of the Participant, or any combination of the foregoing designated by a Parti- cipant to receive benefits under the Plan. Designation shall be by written instrument executed by the Participant unless otherwise provided.. Beneficiary may be singular or plural, primary or contingent. 3.6 "Administrator" means the Employer and/or other parties appointed by the Employer to administer the Plan. 3.7 "Compensation" means the total of all amounts which would be paid by the Employer to or for the benefit of an Employee (if he were not a participant in the Plan) for actual services for the period that he is a Participant. 3.8 ' Payroll Period" means the work period for which a pay check is issued. GFS 111-76 'DEFERRED COMPENII: 'ION PLAN - Page Z 3. 8(a) "Employment Period" means a calendar year, a period from January lst to December 31st; except that the first year of an Employee's participa- tion may be a short period commencing as provided in Section 4. 2 and ending on December 31 st of that year. 3.9 "Retirement" means retirement from service with the Employer which becomes effective on the first day of the calendar month after Participant meets the age and service requirements for retirement (including "early," or "late', retirement) specified in the applicable retirement policies of the Employer. SECTION 4. PARTICIPATION, IN THE PLAN 4.1 Any Employee designated by the, Employer to be eligible may elect to become a Participant in the Plan by executing and filing a Participation Agreement with the Administrator. An election to Participate in the Plan shall become effective with respect to Compensation earned by the Participant during the Employment Period next following the date of the Participant's election. Such election shall' continue thereafter in full force and effect for subsequent Employment Periods unless revoked by the Participant. 4.2 During the year of the inception of the Plan, or in the case of a new or newly eligible Employee, the election to participate shall become effective commenc- ing on the first day of the Payroll Period following the date of said election; provided, however, said election is made no later than sixty (60) days after notification by the Employer that the Plan has been implemented or the new Employee or newly eligible Employee has become eligible. 4.3 Each Participation Agreement shall specify the amount, by dollar amount or by percentage of gross compensation, which is to be deferred pursuant to the Plan and to be withheld out of the Compensation otherwise payable to the Par- ticipant for each Payroll Period. Such deferred amounts shall be reasonably equal installments totaling not less than 'one -hundred ,twenty dollars ($ 120 ) per Employment Period. The annual minimum may be prorated during the inception year, or during a partial year for a new or newly eligible Employee, for full Payroll Periods remaining in the first calendar year of participation. 4.4 A Participant may revoke his election to participate in the Plan, and thereby terminate further deferral of his Compensation, by executing and filing with the'Administrator a notice of revocation at least thirty (30) days prior to the effective date of revocation. A former Participant may not rejoin the Plan during the Employment Period in which revocation occurred; however, he may elect to become a Participant for subsequent Employment Periods. No amounts shall be payable to an Employee upon revocation of his partici- pation in the Plan unless otherwise provided for in Section 7. 4, 5 A Participant may change the amount of Compensation to be deferred in a subsequent Employment Period by executing and filing notice with the Administrator at least 30 days prior to the beginning of such Employment Period. GFS Ili -76 11 , D . EFERRED COMPENSA"_'ON PLAN -Page 3 4. 6 A Participant may designate in writing a Beneficiary to receive any benefits -which may be payable under the Plan upon the death of such Participant. Designation of Beneficiary, may be changed by notice in approved form executed and filed with the Administrator. SECTION 5. DEFERRAL OF COMPENSATION 5.1 During the period of participation, the Employer shall not pay the Participant his full Compensation, but shall defer payment of such part of his Compensa- tion as the Participant has specified in his Participation Agreement. The Employer shall establish in its records an Individual Deferred Compensation Account ("IDC Account") for each Participant, and a summary of such IDC Accounts, to be identified as a General Deferred Compensation Account ("GDC Account"), to provide a convenient method of measuring its obligations to each and all Participants under the Plan. 5.2 Neither the existence of the Plan nor the IDC Accounts shall be deemed to create a trust, and the Employer shall at all times be the legal and beneficial owner of all assets of said IDC Accounts. 5.3 Neither the existence of the Plan nor the IDC Accounts shall entitle any Par- ticipant, a beneficiary of any Participant, or a creditor of any Participant to a claim or lien against the assets of the IDC Accounts. The Participant and his beneficiary shall have only the right to receive benefits pursuant to the Plan. SECTION 6. ADMINISTRATION OF THE PLAN. 6.1 The Plan shall be administered by the Administrator under the direction of the Employer. Acting for and in behalf of the Employer, the Administrator may transmit amounts in the IDC Accounts to such investment plans as here- after may be approved by the Employer. In regard to such investments, written agreements between the Employer and the institutions accepting funds for investment shall contain at least the following provisions: 6. l(a) Any investment of amounts in the IDC Accounts, including earnings on such amounts, shall be made according to written instructions of the Administrator. 6. l(b) The Employer shall be the legal and beneficial owner of all amounts invested (as between Employer and Participant). The Employer shall hold all certificates, policies and other documents evidencing owner- ship of the amounts invested, and shall maintain records, including records of the IDC Account of each Participant and the GDC Account. 6. l(c) No less frequently than quarterly, the Employer shall be furnished with written reports showing the fair market value and/or the current balance of the amount invested (including interest and dividends accrued, if any),and amounts shown in such reports shall be reflected in each Participant's IDC Account by the Employer. GFS 111-76 DEFERRED COMPENSAT.LON PLAN - Page 4 6. 1 (d) No less frequently than quarterly, each Participant shall be furnished with a statement showing transactions, earnings and the current bal- ance of the amounts invested from his IDC Account. 6. 1 (e) Investments shall be subject to all appropriate State or Federal laws and regulations. 6. 1 (f) The Employer shall have the sole right to vote any shares of stock or proxies which it may acquire or be entitled to by investment of IDC Account funds. 6. 2 The Administrator shall record promptly and accurately all transactions per- taining to Participants' Deferred Compensation in their IDC Accounts, and Par- ticipant shall be entitled to know the balance in his IDC Account at least quarterly. 6. 3 The Employer shall have the sole authority to enforce the Plan and shall be responsible for its operation in accordance with its terms. 6.4 The Employer shall determine all questions arising out of the administration, interpretation and application of the Plan. All determinations shall be con- clusive and binding. 6.5 At the time of his election to participate in the Plan, each Participant shall elect the time, manner and (if applicable) the amount of benefits to be paid to him, or in the event of his death to his Beneficiary, under the Plan. This ,shall be an irrevocable election of such times, methods and amounts, in order to comply with Internal Revenue Service requirements for avoidance of "con- structive receipt" of deferred income. 6. 6 In the event that the Employer should purchase an annuity as the means of in- vestment and distribution of funds in a Participant's IDC Account, the Employer shall be both the owner and the named Beneficiary of such annuity contract. 6.7 If the Plan provides for more than one type of investment, a Participant may request a change in investment as provided in Section 4.4 Such request may be made only with respect to compensation not yet earned and deferred. The Employer may, but is not required to, honor such request. The minimum investment in each type of investment shall be one -hundred twenty dollars $ 120 per Employment Period. GFS 111-76 'bE"FERRED COMPENSA7-'ON PLAN - Page 5 )ECTION 7. BENEFITS The Employer shall pay to the Participant, or to. his Beneficiary if applicable, the amount in such Participant's IDC Account as of the month-end followin9 the Partici- pant's termination, retirement, total disability or death. Distribution of Benefits under the Plan will be made, or if in installments shall commence, sixty (60) days after notice to the Administrator of the occurrence of the events described in Section 7 unless otherwise specifically provided. All distributions shall be subject to any State or Federal taxes required to be withheld. Payment shall be made in accor- dance with the irrevocable election made in the Participation Agreement, except in the event of Hardship described in Section 7.4. Installment distributions shall be in approximately equal installments which shall be intended to exhaust the balance due Participant or Beneficiary at the expiration of the term over which they will be made. Such installment amounts may be adjusted from time to time to take into consideration gains or losses, if any, from funds invested. Notwithstanding the foregoing if any method elected by the Participant shall result in installment payments of less than $25, the Employer may elect to make payments on an annual basis aggregating installments otherwise due; or if the balance due Participant or Beneficiary is less than $500, Employer may discharge its obligation by a lump sum payment. 7. 1 RETIREMENT: Upon retirement, the full benefits credited to the Participant's IDC Account, plusorminus investment gains or losses, but less any Feder- al or State taxes required to be withheld, shall be distributed to a Participant in any one or more of the following ways, as pre -elected at time of enrollment: 7. l(a) In a lump sum. 7. l(b) In monthly, quarterly, or annual payments for a designated period of not less than one year and not more than the remaining years of the Participant's life expectancy, determined by the Administrator in accordance with standard mortality tables recognized for that purpose. 7. l(c) Installment payments equal to the benefits received by the Employer under and pursuant to terms of a retirement annuity policy or policies, to be purchased at the time of the Participant's retirement, shall be paid to him in the event that the Participant has pre -elected an annuity form providing for such payments. 7.2 OTHER TERMINATION: In the event of termination of employment before Retirement for reasons other than those specified in Section 7. 3 and Section 7.4, then the full benefits credited to Participant's IDC Account,plus or minus subsequent gains or losses, shall be distributed to him in any one or more of the following ways, pre -elected at the time of enrollment: 7. 2(a) In a lump sum. GFS 111-76 DEFERRED COMPENSALLON PLAN - Page 6 7. 2(b) In monthly payments over a period not to exceed ten (10) years from date distribution begins. 7. 2(c) In payments under 7. Z(a) and 7. Z(b) above postponed by pre-election - at time of enrollment -until Participant reaches his 50th, 60th or 65th birthday. Payments under this subsection will commence on the first day of the month following the Participant's birthday. 7.3 TOTAL PERMANENT DISABILITY: In the event of the total permanent disability of a Participant while he is an Employee of the Employer, the Employer shall pay to the Participant an amount equal to the balance of the Participant's IDC Account as of the month-end following the Employer's determination of such disability, such amount to be paid in the manner pre- elected by the Participant at the time of enrollment pursuant to the options in Section 7. 1, above. 7.4 HARDSHIP: In the event of occurrence to the Participant of an emergency event to be determined by the Employer in his sole discretion, the Employer may pay to the Participant all or any portion of the e amount in such Participant's IDC Account as of the month-end following the date when such determination is made. As used herein, emergency event shall mean only a real emergency which has occurred, which is or was beyond control of the Participant, and the occurrence of which has or would cause the Participant great financial hardship. The amount that will be paid out shall be limited to the amount necessary to alleviate that hardship. Any distribution under this section shall be deemed a revocation under Section 4.4 and no further deferral of Compensation will be made for the remainder of the current Employment Period. 7. 5 DEATH: In the event of death of any Participant, either before or after ter- mination of employment, then the full benefits credited to his IDC Account shall be distributed to his Beneficiary in a manner described in Sections: 7. 1(a), 7. l(b) and 7. l(c) as pre -elected at time .of enrollment. SECTION 8. MISCELLANEOUS 8. 1 The contractual obligation of the Employer to the Participant established by the Plan shall not be assignable in whole or part, voluntarily or by operation of law, and no right or interest of a Participant pursuant to the Plan shall be subject to any obligation or liability of such Participant or his Beneficiary, except as pro- vided in the next paragraph hereinbelow. 8.2 If an unpaid debt is owing to the Employer by a terminating Participant or his Beneficiary, and the debtor refuses or neglects to pay the debt by any other means when due and upon demand, the Employer shall be entitled to collect the amount due from the IDC Account of such debtor. The Employer shall make no loans or advances to the Participant or Beneficiary based upon such IDC Accounts or upon any other obligations under the Plan. GFS i i 1-'76 DEFERRED COMPENSA'F_�N PLAN - Page 7 8. 3 No Participant or other person shall have any legal or equitable right against the Employer except as provided in the Plan; and, in no event, shall the terms of employment of any Employee or Participant be modified or in any way affect- ed thereby. 8.4 Each Participant herein expressly agrees for himself and his Beneficiary that he shall look solely to the general assets of the Employer for the payment of any such benefit to which he may become entitled under the Plan, and acknow- ledges that all amounts deferred hereunder shall be available to satisfy the general obligations of Employer. 8. 5 The Plan has been adopted in the State of California and shall be construed and governed and administered in compliance with all applicable State law. 8.6 Captions used in the Plan are for the purpose of convenience only, and shall not limit, restrict or enlarge the provisions of the Plan. M 8. 7 The Plan shall be binding upon and shall inure to the benefit of the Employer, its successors and assigns, all Participants and Beneficiaries, and their heirs, and legal representatives. 8. 8 As used in the Plan, the masculine or feminine or neuter gender, and the singular or plural number shall each be deemed to include the others un- less the context clearly indicates otherwise. 8.9 Any notice or other communication required or permitted under the Plan shall be in writing and, if directed to the Employer, shall be sent to the Administrator at his principle office; and, if directed to a Participant or a Beneficiary, shall be sent to such Participant or Beneficiary at his last - known address as it appears on the Employer's records. Such notice shall be deemed given when mailed. 8.10 Deductions for Participant's contributions to retirement associations shall be made without reference to amounts deferred pursuant to the Plan. 8. 11 An approved leave of absence with pay shall not affect agreements to parti- cipate in the Plan. 8. 12 An approved leave of absence without pay shall be considered to be a tem- porary suspension of participation in the Plan. Participation shall be auto- matically reinstated as of the first day of the next Pay Period subsequent to the termination of such leave of absence status. Ux'b i i i - ib DEFERRED COMPENSA7__1)N PLAN - Page 8 ECTION 9. TERMINATION OF PLAN BY EMPLOYER The Plan maybe amended or terminated by the Employer at any time, or the Employer may, without amending or terminating the Plan, cease to set aside assets under the Plan. No amendment or termination of the Plan, and no cessa- tion of the setting aside of assets by the Employer shall reduce or impair the rights of any Participant or Beneficiary which may already have accrued. 9. 1 If the Plan is terminated by the Employer, the Employer may, at Employer's option, distribute to all Participants amounts equal to the balance of their IDC Accounts as of the month-end following such termination. 9.2 If Employer does not elect to pay accrued benefits on termination of the Plan, he shall cease all deferrals of Compensation but payment of benefits shall be made pursuant to the applicable provisions of Section 7 of the Plan and the irrevocable election of the various Participation Agreements then in effect. GFS 111-76 CITY OF ANAHEIM EMPLOYEES' DEFERRED COMPENSATION PLAN PARTICIPATION AGREEMENT THIS AGREEMENT, made by and between the CITY OF ANAHEIM hereinafter referred to as 11Employer" and WHEREAS, the Employer has established the " "CITY OF ANAHEIM EMPLOYEES- DEFERRED COMPENSATION PLAN)" hereinafter referred to as "Plan" for the benefit of its employees, and WHEREAS, the Plan provides that any employee, subject to the limitations es- tablished in the Plan of the Employer, may elect to join and become a Partici- pant in the Plan upon executing and filing with the Employer a Participation Agreement, and WHEREAS, the Employee desires to join and become a Participant in the Plan, NOW, THEREFORE, the Employer and the Employee agree as follows: 1. Employer has provided the Employee with a current copy of the Plan. 2. Employee hereby elects to become a Participant in the Plan and to defer payments pursuant to the Plan as follows: Amount of Compensation per Payroll Period $ (not less than $120 per year) 3. Employee agrees that his rights to the Deferred Compensation shall be governed by all terms and conditions of the Plan. 4. The Employee designates•his investment objective to be savings and loan accounts. Employer may recognize this objective, but is not required hereby to do so. -1- t GFS 111-76 Under Section 7 of the Plan, the Employee irrevocably elects the fallowing distribution of benefits: At Retirement (1) Lump Sum % (2) Installments Payable over years 71 Monthly ❑ Quarterly ❑ Annually (3) Installments Payable. Life Expectancy--_� Monthly ❑ Quarterly ❑ Annually (4) A `% Annuity (monthly) F---1 10 years certain & life annuity ❑ Single life annuity Joint & survivor annuity At Other Termination (except total disability) (1 } Lump Sum % ❑ Postpone to age ❑ 50 60 65 (2) Installments Payable monthly over years (not to exceed 10 years) Postpone to age ❑ 50 0 60 ❑ 65 At Total Permanent Disabili (1) ❑ Lump Sums % (2) ❑ Installments Payable monthly over_years (3) F7 Life Annuity (monthly)% At Death to Beneficiary (1) F] Lump Sum -% (2) Installments Payable over years ❑ Monthly ❑ Quarterly ❑ Annually (3) ❑ Annuity ( Monthly) % Life Annuity ❑ 120 months certain & life -2- � w Thi— mployee designates the follow 9 persons as his Beneficiaries to . _ceive, in the event of his deatl ny benefits to which he is entitled under the Plan: Name of Beneficary* Address of Beneficiary a. b. 'c. If more than one person is named as Beneficiary, any payments to which they may be entitled shall be paid as follows: (Choose one) Wholly to the person designated as the first Beneficiary above provided (she) - (he) survives me, and if (she) - (he) does not survive me, in .equal shares to the remain- ing Beneficiaries who survive me. In equal shares, to such of the designated Beneficiaries as shall then be living. I hereby reserve the right to change or revoke this Beneficiary designation without notice to any Beneficiary. Dated: , 19 CITY OF ANAHEIM EMPLOYER By Its EMPLOYEE I "hereby agree to the designation of Beneficiary as shown above. (Sp®use to sign only if not named above as sole first Beneficiary. SPOUSE OF EMPLOYEE -3