RES-2007-197WHEREAS, the Human Resources Director and City Treasurer have
recommended in a staff report dated October 23, 2007, that the City Council amend the
Anaheim Retirement Health Savings Plan effective January 1, 2008 and thereafter; and
WHEREAS, the City Council of the City of Anaheim does find that amending the
City of Anaheim Retirement Health Savings Plan for employees serves the best interests of the
City by enabling it to provide reasonable security regarding such employees' health needs
during retirement, by providing increased flexibility in its personnel management system, and by
assisting in the attraction and retention of competent personnel; and
WHEREAS, the City of Anaheim has previously adopted the City of Anaheim
Retirement Health Savings Plan (the "Plan and
follows:
RESOLUTION NO. 2007- 197
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 Plan provides that it may be amended from time to time; and
WHEREAS, it is desirable to amend the plan to clarify certain provisions as
Restate the Integral Part Trust provision to clarify that the City shall make contributions
to the Trust as is required under any applicable City policies established for non
bargaining unit employees, including but not limited to Personnel Rules 23.7, and the
terms of any applicable collective bargaining agreements.
Restate the definition for Eligible Medical Expenses by restricting non bargaining unit
employee's usage to Eligible Premium Payments only.
Add a definition for Eligible Premium Payments to state that it is an amount that is
described in Section 213(d) of the Internal Revenue Code, and that is paid or payable by
a Covered Person to obtain coverage for Covered Persons.
Revise the definition for Participating Employee members of the Deferred
Compensation Committee to remove the section that states that the Participating
employee representative must be a member of the RHS Plan.
Revise the Forfeiture Provisions to provide that all forfeitures shall be used to offset
future Plan expenses or shall be allocated to the Accounts of other Participants.
Update the claims procedures to allow electronic claims submission; and
Remove the section on Domestic Relations Orders.
F: \OT4060CS.DOC
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Anaheim that the Retirement Health Savings Plan be amended and restated as set forth in a
copy of the amended Plan attached hereto and incorporated by reference herein, is hereby
approved.
THE FOREGOING RESOLUTION is approved and adopted by the City Council
of the City of Anaheim this 23 day of October 2007 by the following roll call vote.
AYES:
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
ATTEST:
Mayor Pringle, Council Members Hernandez, Sidhu, Galloway, Kring
CITY CLERK OF THE OF ANAHEIM
APPROVED AS TO FORM:
JACK L. WHITE, CITY ATTORNEY
BY: O ES JOHNSON, IV
ASSI.TANT Y ATTORNEY
MAYOR OF THE CI Y OF NAHEIM
F: \OT4060CS.DOC
CITY OF ANAHEIM
HEALTH SAVINGS
AND REIMBURSEMENT
PLAN
1/01/08
TABLE OF CONTENTS
ARTICLE I. NAME 1
1.01 Establishment of Plan 1
1.02 Purpose 1
ARTICLE II. DEFINITIONS 1
Account Balance 1
Administrator 1
Benefits 1
Claim Administrator 1
Code 1
Covered Dependent 1
Covered Participant 1
Covered Person 2
Covered Spouse 2
Deferred Compensation Committee 2
Dependent 2
Disability 2
Eligible Employee 2
Eligible Medical Expenses 2
Eligible Premium Payments 2
Employee 3
Employer 3
Forfeitures 3
Participant 3
Participating Employee 3
Participating Employee (Rotating Department Employee Representative) 3
Plan Administrator 3
Plan Year 3
Provider 3
Spouse 3
Sub Committee 3
Valuation Date 3
ARTICLE III. PARTICIPATION 4
3.01 Participation
ARTICLE IV. PLAN FUNDING
4.01 Integral Part Trust
i
4
4
4
4.02 Retirement Health Savings Plan Accounts 4
ARTICLE V. PAYMENT OF BENEFITS 5
5.01 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 7
6.05 Bonding 7
6.06 Payment of Administrative Expenses 7
6.07 Timeliness of Payments 7
6.08 Annual Statements 7
6.09 Forfeitures 7
ARTICLE VII. CLAIMS PROCEDURE 8
7.01 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 9
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 10
9.01 No Employment Rights Conferred 10
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 11
9.07 Tax Effects 11
9.08 Multiple Functions 11
9.09 Gender and Number 11
ii
9.10 Headings 11
9.11 Applicable Laws 11
9.12 Severability 11
9.13 Miscellaneous 11
iii
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 January 1, 2008.
1.01 Establishment of Plan
The Employer hereby amends and restates the Retirement Health Savings Plan and Trust
effective as of the 1st day of January 2008. 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:
Account Balance: The bookkeeping account maintained on behalf of a Participant pursuant to
Section 3.01.
Administrator or Plan Administrator: The City Treasurer shall serve as Plan Administrator unless
another person or entity is designated by the City Council.
Benefits: Any amounts paid to reimburse a Covered Person for Eligible Medical Expenses
incurred by such person.
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.
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.
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.
Covered Participant: A Participant who is either:
1
(a) a former Employee; or
(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.
Covered Person: A Covered Participant, a Covered Spouse and a Covered Dependent(s).
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.
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 Human
Resources Director or his appointee; two (2) Participating Employees and one (1) Rotating
Depai tiuent Employee Representative.
Dependent: Any individual who is a dependent of a Participant within the meaning of Code
Section 105(b).
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.
Eligible Employee: 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.
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.
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
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.
Employer: The City of Anaheim.
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.
Participant: As described in Article III.
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.
Participating Employee (Rotating Depai tment 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
City of Anaheim. This member shall serve a two (2) year term.
Plan Administrator: The City Treasurer shall serve as Plan Administrator unless another person or
entity is designated by the City Council.
Plan Year: The calendar year.
Provider: An institution providing investments or deposit vehicles.
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).
Sub Committee: A subdivision of the Committee and shall be less than a quorum of the
Committee.
Valuation Date: Each business day.
All other defined terms in this Plan shall have the meanings specified in the various Articles of
the Plan in which they appear.
3
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, 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 of other Participants in accordance with
Section 6.09 of the Plan.
(c) Notwithstanding the foregoing, if a Participant dies prior to prior to January 1,
2009 and had named a designated beneficiary other than persons described in
paragraph (b), the Account may be used by any of such persons until the earlier of
December 31, 2008 or such time as the amounts credited to the Account are
exhausted. If a balance remains in any such account as of December 31, 2008, the
remaining amount in the Account shall only be used by persons who, at the date
of the Participant's death, were either the Covered Spouse or a Covered
Dependent who is a Dependent of the Participant; and the account shall become a
Forfeiture is all such persons die before the Account is exhausted.
ARTICLE IV PLAN FUNDING
4.01 Integral Part Trust
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 and 33, and the terms of any applicable
collective bargaining agreements.
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:
4
(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
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.
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
5
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
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
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 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 of 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 and 33, 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
7
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.
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.
7.02 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
8
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.
9
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.
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.
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 four (4) years 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) years 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 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.
10
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
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 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 as noted below:
A. CITY COUNCIL
11
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
1. 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. SUB- COMMITTEE
1. Performs task within the scope of the Committee's responsibility.
12
IN WITNESS WHEREOF, we have executed this Plan the date and year first written above.
ATTEST
CITY OF ANAHEIM
(Employer)
2. The Sub committee makes reports and recommendations for consideration to the
Committee.
APPROVED AS TO FORM:
JACK WHITE, CITY ATTORNEY
11,
SES W
BY: J
YOR
L NDA NGU I CLE
21':O I\
ISTAN C TY ATTORNEY
13