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91-173 RESOLUTION NO. 91R-173 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING A RETIREMENT PLAN FOR PART TIME, TEMPORARY, AND SEASONAL EMPLOYEES WHEREAS, the Omnibus Budget Reconciliation Act of 1990 amended prior law by adding Section 3121(b)(7)(F) to the Internal Revenue Code expanding the definition of employment for the purpose of FICA taxes to include service performed by employees of state or local government entities after July 1, 1991; and WHEREAS, such law exempts employees who are members of a retirement system of a state or local government entity from FICA coverage if certain minimum standards are met; and WHEREAS, certain employees of the City of Anaheim are members of the california Public Employees' Retirement System ("CALPERS") and are thereby exempt from FICA taxes; and WHEREAS, the Internal Revenue Service has issued proposed regulations 26 CFR Part 31 that define a public retirement system and establish minimum benefit standards and such proposed regulations specifically reference Section 457(b) of the Internal Revenue Code as an allowable plan for the purpose of Section 3121(b) (7) (F); and WHEREAS, the City Treasurer of the City of Anaheim has recommended a Plan Document which is intended to treat participants as members of a retirement system within the meaning of IRC Code Section 3121(b) (7) (F). NOW THEREFORE BE IT RESOLVED by the City Council of the city of Anaheim that the City of Anaheim Deferred Compensation Plan for Employees Not Covered by CALPERS (hereinafter called "PLAN") attached as Exhibit "A" and incorporated herein is hereby adopted. BE IT FURTHER RESOLVED by the City Council of the City of Anaheim that all Eligible Employees shall be participants in the PLAN and shall make employee contributions as required by the PLAN. BE IT FURTHER RESOLVED by the city Council of the City of Anaheim that the effective date of this PLAN shall be June 28, 1991 for Event Payroll Eligible Employees of the Stadium and Convention Center, and shall be June 21, 1991 for all other Eligible Employees. 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 and to constitute a retirement system within the moaning of IRC Section 3121(b)(7) (F). The City shall amend the PLAN to the extent that may be necessary to conform the P~N to all applicable laws, regulations, or rulings. BE IT FURTHER RESOLVED that capitalized terms used herein shall have the same meaning as set forth in Section 3 of the P~N unless otherwise expressly stated herein. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 11th day of June , 1991. APPROVED AS TO FO~: CITY ATTORNEY OF THE CITY OF ANAHEIM JLW:lm I:\DOCS\ORDRES\R40RETIR.12 STATE OF CALIFORNIA ) COUNTY OF O~NGE ) ss. CITY OF ANAHEIM ) I, LEONO~ N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing Resolution No. 91R-173 was introduced and adoWed at a regular meeting provided by law, of the Anaheim City Council held on the 11th day of June, 1991, by the following vote of the members thereof: AYES~ COUNCIL MEMBERS: Simpson, Daly, Pickler, Ehrle and Hunter NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None AND I FURTHER certify that the Mayor of the City of Anaheim signed said Resolution No. 91R-173 on the 12th day of June, 1991. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the City of Anaheim this 12th day of June, 1991. CITY CLERK OF THE CITY OF ANAHEIM ( SEAL ) I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original of Resolution No. 91R-173, duly passed and adopted by the City Council of the City of Anaheim on June 11, 1991. CITY CLERK OF THE CITY OF ANAHEIM *~° ~"~~ CITY OF ANAHEIM, CALIFORNIA CMC CENTER, 200 S. Anaheim Blvd., Second Floor Anaheim, CA 92805 Office of Telephone: CITY TREASURER (714) 254-5117 FAX (714) 254-5232 CITY OF ANAHEIM DEFERRED COMPENSATION PLAN FOR EMPI,OYEES NOT COVERED BY CALPERS SECTION 1. NAME'. The name of this Plan is the City of Anaheim Deferred Compensation Plan for employees not covered by CALPERS hereinafter, referred to as the "Plan". SECTION 2. PURPOSE: The purpose of this Plan is to extend, to Eligible Employees of the Employer, certain benefits which ordinarily accrue from participation in an "eligible deferred compensation plan", as that term is used in Section 457 of the Federal Internal Revenue Code of 1986 as amended. It is intended that Participants in this Plan be considered members of a retirement system, within the meaning of Section 3121(b)(7)(F) of the Internal Revenue Code of 1986, as amended. However, the Employer does not and cannot represent or guarantee that any particular federal or state income, payroll or other tax consequence will occur by reason of an Employee's participation in this Plan. The Participant should consult with his own attorney or other representative regarding all tax or other consequences of participation in this Plan. SECTION 3. DEFINITIONS: For all purposes of this Plan, certain words or phrases used herein will have the following meanings: 3.1 "Accounf' shall mean the book account maintained on behalf of a Participant in accordance with Section 10. 3.2 "Beneficiary" shall mean any person, u'ust, corporation or firm, or the estate of the Participant, or any combination of the foregoing designated by a Participant to receive benefits under the Plan. Designation shall be by written inslxument executed by the Participant unless otherwise provided. Beneficiary may be singular or plural, primary or contingent. 3.3 "CALPERS" shall mean the California Public Employees Retirement System. 3.4 "Compensation" shall mean the salary or wages which would be paid by the Employer to or for the benefit of an Employee (if he/she were not a Participant in the Plan) for actual services performed for the Employer for the period that he/she is a Participant. 3.5 "Contract Administrator" shall mean an administrator employed under contract authorized by the City Council and under the direction of the Plan Administrator. 3.6 "Contributions" of a Participant shall mean his Participant Contributions and any Employer Contributions made on his behalf. 3.7 "Deferred Compensation" of a Participant shall mean the Participant Contributions and Employer Contributions credited to his Account, adjusted as provided in Section 10 of the Plan. 3.8 "Disability" shall mean the substantial permanent inability of a Participant to engage in his/her usual occupation by reason of a medically determinable physical or mental impairment as determined by the Employer on the basis of advice from a physician or physicians. 3.9 "Eligible Employee" shall mean any Employee who is not a Qualified CALPERS Participant. However, if an Employee's Compensation is determined pursuant to a collective bargaining agreement, he shall not be an Eligible Employee under this Plan unless he meets the preceding requirements of this Paragraph 3.9 and such bargaining agreement specifically provides that he may be an Eligible Employee hereunder; and further provided no employee shall be an eligible employee if his/her service is described in clauses (i) through (v) of the IRC Section 3121(b)(7)(F). 3.10 "Employee" shall mean any officer or other employee of the Employer. 3.11 "Employer" shall mean the City of Anaheim. 3.12 "Employer Contributions" shall mean the contributions of the Employer that are made to the Plan in accordance with Paragraph 4.2. 3.13 "Includible Compensation" shall mean compensation for service performed for the Employer which (taking into account for the provisions of Section 457 and 403(b) of the Federal Internal Revenue Code) is currently includible in gross income. Compensation shall be taken into account at its present value. The amount of includible compensation shall be determined without regard to any community property laws. 3.14 "IRC" shall mean the Internal Revenue Code of 1986, as amended, and any Treasury Regulations and rulings thereunder. 3.15 "Normal Retirement Age" shall mean age 70-1/2. Normal retirement age under this · agreement does not represent a mandatory age of retirement, nor, is it an agreement to retire at a designated age. 3.16 "Participant" shall mean any Eligible Employee or former Eligible Employee who has made Participant Contributions pursuant to the Plan and has an Account under the Plan. 3.17 "Participant Contributions" shall mean that portion of a Participant's Compensation that is deducted by the Employer from such Compensation in accordance with Paragraph 4.1. 3.18 "Plan Administrator" shall mean the City Treasurer unless another person or entity is designated by the City Council. 3.19 "Plan Year" shall mean the calendar year. 3.20 '~ shall mean an institution providing an investment or deposit vehicle for a deferred compensation fund established under Section 6.2. 3.21 "Oualified CAI,PERS Participant" shall mean any Employee who: (i) is or ever has been a member in the CALPERS, and (ii) either: (A) based upon his current compensation, is realring employee contributions to CALPERS and having employer contributions made to CALPERS, (B) previously retired from the service of the Employer and has attained normal retirement age under the CALPERS, or (C) previously retired from the service of the Employer and is currently receiving retirement benefits under the CALPERS. 3.22 "Required Beginning Date" shall mean the April 1 of the calendar year following the calendar year in which the Participant attains age 70-1/2. 3.23 "Separation from Service" shall mean severance of the Participant's employment with the Employer. A Participant shall be deemed to have severed his employment in accordance with the established practices of the Employer, but not earlier than such time as the person is no longer on the payroll of the Employer. SECTION 4. PARTICIPATION: 4.1 Each Eligible Employee shall have 3.75% of his Compensation earned as an Eligible Employee withheld by the Employer as a Participant Contribution under this Plan. Notwithstanding the preceding, the Employer and the Eligible Employee mutually acknowledge that unless indicated otherwise in the salaw resolution or personnel ordinance or policies of the Employer, the salary or wage of the Eligible Employee includes the Participant Contributions made under this Plan. As soon as practicable after the deduction from the Compensation of the Eligible Employee, the Employer shall pay all Participant Contributions to the fund or funds established pursuant to Section 6 of the Plan. 4.2 On behalf of each Eligible Employee that has Participant Contributions deducted from his Compensation pursuant to Paragraph 4.1, the Employer shall pay to the fund or funds established pursuant to Section 6 of the Plan, an Employer Contrbution equal to 3.75% of the Compensation which is earned as an Eligible Employee. Payment of Employer Contrbutions shall be made concurrently with the payment of the Participant Contrbutions. 4.3 The Employer may change percentages of Compensation to be contrbuted as Participant Contrbutions or Employer Contributions to greater or lesser peruenrages by amending this Plan in accordance with Section 16. In addition, such percentages may be changed to comply with the terms of any collective bargaining agreement pursuant to which Employees participate in this Plan. Any percentage changes in the amount of Participant Contributions hereunder shall be effective only with respect to Compensation earned after the adoption date of the Plan amendment relating thereto or, if applicable and later, the ratification date of the collective bargaining agreement relating thereto. 4.4 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. A Participant may modify his Participation Agreement to change such Beneficiazy by filing with the Employer a properly executed written notice of modification, which will take effect as of the date of delivery to the Employer. SECTION 5. DEFERRAL OF COMPENSATION: 5.1 The Contributions made on behalf of a Participant for the taxable year shall not exceed the lesser of: (A) $7,500.00 or (B) 33 1/3 percent of the Participant's Includable Compensation for such taxable year. 5.2 If an individual is a Participant in more than one eligible state deferred compensation plan, the amount of compensation deferred under this Plan and all such other plans may not exceed the maximum amounts set forth in Section 5.1. 5.3 In applying the limits set forth in Sections 5.1, an amount excluded from the Participanfs gross income for the taxable year under Section 403(b) of the Internal Revenue Code shall be treated as an amount deferred under this Plan. SECTION 6. ADMINISTRATION OF THE PLAN: 6.1 The plan shall be administered by the Employer but may be administered through a Plan Administrator employed under contract with, and under the direction of, the Employer (hereinafter "Contract Administrator"). If a Contract Administrator is utilized, Participants receiving services from said Administrator may be charged a fee for said services. The Employer shall determine said fees in a manner deemed fair and equitable. The Employer may withhold or collect, or have withheld or collected, such fee, in such manner as it deems equitable, from the compensation deferred pursuant to the Plan, or the income produced from the compensation deferred pursuant to the Plan. 6.2 The Employer may establish and maintain one or more funds ("deferred compensation funds") to provide a convenient method of setting aside sufficient of its assets to meet its future obligations under this Plan. The Employer shall at all times be the legal and benefieial owner of all assets in the deferred compensation fund or funds~ and neither the existence of the Plan nor of the deferred compensation fund or funds shall be deemed to create a trust or limit use by the Employer of the assets therein for general Employer purposes. The obligation of the Employer to make payments pursuant to this Plan is contractual only, and no Participant or Beneficiary shall have a preferred claim or lien on or to the assets of the deferred compensation fund or funds, but shall have only the fight to receive the benefits payable under the Plan. 6.3 The Contract Administrator or the Employer may transmit Deferred Compensation to such deferred compensation funds as hereinafter established by the Employer pursuant to Section 6.2. In regard to such deferred compensation funds, written agreements between the Employer and institutions accepting such funds for investment or deposit shall contain the following provisions, as applicable: 6.3(a) The Employer shall be the legal and beneficial owner of all amounts invested (as between Employer and Participan0. The Employer or its designated representative shall hold all certificates, policies, and other documents evidencing ownership of the amounts invested or deposited. 6.3(b) The Employer shall have the sole fight to vote any share of stock or proxies which it may acquire or be entitled to by investment of such funds. 6.4 The Employer shall have the sole and. exclusive authority to enforce the Plan and shall be responsible for its operation in accordance with its terms, provided however, that nothing contained herein shall be deemed to diminish the duties owed to the Employer by any person, firm or entity which performs any investment, administrative or other function in connection with the Plan, nor to d'un'mish any fights of the Employer against such person, fu'm, or entity. 6.5 The Employer shall have the sole and exclusive authority to answer questions arising out of the administration, interpretation, and application of the Plan. All determinations shall be conclusive, final, and binding. 6.6 Prior to the time of distribution of benefits to the Participant under the Plan, each Paxticipant shall elect the time and manner of such distribution to him/her, or in the event of his/her death, to his/her Beneficiary, under the Plan. If no election is made, payment may be made pursuant to Section 11.2. However, notwithstanding the Participant's selection, the Employer in its sole discretion may determane the time and manner of payment of benefits. 6.7 In the event that the Employer should purchase an annuity as a means of investment and/or distribution of funds in a Participant's book account, as that term is used in Section 10, the Employer shall be both the owner and the named Beneficiary of such annuity contract. 6.8 If the Employer establishes more than one deferred compensation fund under Section 6.2, the Employee upon executing the Participation Agreement, shall indicate his preference or preferences pursuant to Section 4.3 prospectively only. Such expression of investment preferences does not obligate the Employer to follow the Employee's designation. The Employer may, but is not required to, invest deferred compensation at least monthly in the deferred compensation funds established by the Employer. 6.9 In the event that the Employer establishes more than one deferred compensation fund under Section 6.2, the Employer may elect to permit a Participant to request a change in preference of investment for the Contributions made to the Plan on his behalf. Such request may be made only with respect to compensation not yet earned and deferred. In addition, the Employer may elect to permit a Participant to request, from among different modes of investments available under the Plan, all property and fights to property (including fights as a beneficiary of a contract providing life insurance protection) purchased with such amount, and all income attributable to such amounts, property, or rights to property. The Plan Administrator may, but is not required to, honor such requests. Nothing contained in this Plan shall be construed as requiring the Employer to invest deferred amounts or as limiting the Employer's discretion with respect to making investments. SECTION 7. EARNINGS OF THE FUND: If a fund is established pursuant to Section 6.2, and such fund is invested and reinvested in a manner intended to increase Plan assets, the net earnings of such fund may be accumulated and held in the fund, provided that such assets remain the unrestricted assets of the Employer, as set forth in Section 8 below. SECTION 8. ASSETS OF THE PLAN: All amounts deferred under the Plan, all property and fights to property (including rights as a beneficiary of a contract providing life insurance protection) purchased with the amounts, and all income attributable to the amounts, property, or fights to property shall remain (until paid or made available to the Pa~icipant or Beneficiary under the Plan) solely the property and fights of the Employer (without being restricted to the benefits under the Plan) subject only to the claims of the Employer's general creditors. Accordingly, a Participant shall have no preferred or specific interest by way of trust, escrow, or otherwise, in, and to, the specific assets or funds that may be established. SECTION 9. NON-RESPONSIBILITY CLAUSE: The Employer may, but is not required to, invest Deferred Compensation in accordance with the preference or preferences indicated by each Participant at the time of enrollment or change in enrollment, prospectively only. The Employer shall retain the fight to approve or disapprove such investment request or requests, for transfer of investment among different modes of investment available under the Plan, as provided in Section 6.9. Any such action by the Employer in investing funds, or approving of any investment of funds, shall not be considered to be either an endorsement or guarantee of any investment, nor shall it be considered to attest to the financial soundness or the suitability of any investment for the purpose of meeting future obligations as provided in Section 11. In no event shall the Employer's obligation to pay benefits to a Participant exceed the value of the amounts credited to the Participant's account; the Employer shall not be liable for losses arising from depreciation or shrinkage, in the value of any investments acquired under this Plan. SECTION 10. MAINTENANCE OF BOOK ACCOUNTS: A book account shall be maintained for each Participant by the Employer or provider as a convenient method of record-keeping only. As described in this Section, said account is designated in the Plan as "book account". There shah be credited to the book account all of the Contributions made on behalf of a Participant under the Plan, and credited or debited all income or losses attributable to such amounts. At the election of the Employer, separate accounts may be maintained with respect to Participant Contributions and Employer Contributions. The "income or losses attributable to amounts" shall mean the actual earnings or losses of the deferred compensation fund established pursuant to Section 6.2 of the Plan, if such a fund is established by the Employer, allocated on a pro rata basis. SECTION 11. DISTRIBUTION OF BENEFITS: 11.1 Retirement Benefits and Election of commencement date on separation from service: Distributions of a Participant's Account shall commence within 60 days following the close of the Plan Year in which (i) the Participant (or former Participan0 attains (or would have attained) Normal Retirement Age, or (ii) the Participant Separates from Service, whichever is later. Notwithstanding the preceding sentence, if a Participant separates from service prior to Normal Retirement Age, within 30 days following the date he separates from service, he may irrevocably elect to have distributions from his Account commence within 60 days following a Plan Year which precedes the Plan Year in which he will attain his Normal Retirement Age. Provided further, that even if a Participant is still employed, distributions must commence by the required Beginning Date of the Participant. The election for distribution of a Participant's Account shall be delivered in writing to the Employer and forwarded to the Provider at least 60 days prior to the time that payment is to commence. Retirement benefits shall be made in accordance with one of the payment options described in Section 11.2. 11.2 Payment Options: As provided in Section 11.1, and 11.5, a Participant may elect to have the value of his Account distributed in accordance with one of the following payment options, provided that such option is consistent with the limitation set forth in Sections 11.3 and 11.4; (a) Equal monthly, quarterly, semi-annual or annual payments in an amount chosen by the Participant, continuing until his Account is exhausted. (b) One lump sum payment. (c) Approximately equal monthly, quarterly, semi-annual or annual payments, calculated to continue for a period certain chosen by the Participant. (d) Payments equal to payments made by the issuer of a retirement annuity policy acquired by the employer. (e) Any other payment option elected by the Participant and agreed to by the Employer. A Participant's election of a payment option must be made at least thirty (30) days before the payment of benefits is to commence. DEFAULT: If a Participant fails to make a timely election of a payment option, benefits shall be paid monthly commencing immediately for a period of five (5) years. 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 shall make payments on an annual basis aggregating installments otherwise due; or if the balance due Participant or Beneficiary is less than $1,000, Employer shall discharge its obligation by a lump sum payment. 11.3 Minimum Distributions: Notwithstanding tbe provisions of Section 11.1 and 11.2, beginning with the calendar year in which the Participant attains age 70-1/2 (the "70-1/2 calendar year") and for each calendar year thereafter, a minimum distribution shall be made to the Participant during such calendar year from his Account (or a retirement annuity purchased with such Accoun0 at least equal to a minimum mount determined in accordance with the following formula: B = MINIMUM DISTRIBUTION X For purposes of the preceding formula, "B" is equal to the value of the Account on December 31 of the preceding calendar year; "Y" is equal to the Fife expectancy of the Participant (or the joint life expectancy of the Participant and his Beneficiary) based on his birthday (or their birthdays) in the 70-1/2 calendar year; and "X" is the number of calendar years that have ended since the Participant attained age 70-1/2 (including the 70-1/2 calendar year). For purposes of this Section, the following rules shall apply when determining the minimum distribution: (i) the minimum distribution to be made with respect.to the 70-1/2 calendar year may be delayed until no later than April 1 of the following calendar year;, (ii) if, pursuant to clause (i), all or part of a minimum distribution is delayed until after December 31 of the 70-1/2 calendar year, the value of "B" for the calendar year following the 70-1/2 calendar year shall be reduced by the amount of such delayed distribution; (iii) the rife expectancy of a Beneficiary may be used only if the interest of such person is payable on account of the death of the Participant (i.e. such person is a primary beneficiary); (iv) if them is more than one primary beneficiary, the life expectancy of the oldest primary beneficiary shall be used; (v) (A) except provided in (B) and (C), primary beneficiaries (and life expectancy) shall be determined as of the required Beginning Date of the Participant, (B) with respect to the 70-1/2 calendar year, it is permissible to use the life expectancy of any beneficiary designated during such year or at anytime prior to the Participant's Required Beginning Date, and (C) if a primary beneficiary is added or changed after the Required Beginning Date of the Participant, the life expectancy of the new primary beneficiaxy shall be substituted for all subsequent calendar years if the life expectancy of such new beneficiary (determined as of the Required Beginning Date) was shorter than the life expectancy of the current primary beneficiary (determined as of the Requ'ned Beginning Date); (vi) if a primary beneficiary is a trust, the life expectancy of the beneficiafies of the trust shall be used, provided: (A) the trust is a valid trust under state law, or would be if funded, (B) the trust is irrevocable, (C) the trust beneficiaries who are beneficiaries of the Account of the Participant are identifiable from the trust instrument, and (D) a copy of the trust is provided to the Plan Administrator; (vii) if, on the Required Beginning Date of the Participant or any time thereafter, them is a primary beneficiary other than a natural person or a trust described in (vi), the Participant shall be treated as not having a primary beneficiary, even if there are natural persons also named as primary beneficiaries; and (viii) when determining the life expectancy of the Beneficiary of a Participant in the 70~ 1/2 calendar year, unless the Beneficiary is the spouse of the Participant, the Beneficiary shall not be considered to be more than 10 years younger than the Participant (i.e., not younger than age 60 or age 61). To the extent any of the foregoing does not comply with the requirements of Code Section 401(a)(9) and the Treasury Department Regulations thereunder, the Plan shall be administered in accordance with such provisions. 11.4 Death Benefits: Upon the death of a Participant, any remaining balance in his Account shall be payable to his Beneficiary no later than 60 days following the Plan Year in which the death of the Participant occurs. However, if the Beneficiary is the surviving spouse of the Participant and distributions had not begun prior to the Participant's death, prior to the time that distributions commences, such Beneficia~ may request that distributions commence at a date not later than December 31 of the Plan Year in which the Participant would have attained Normal Retirement Age. A Beneficiary may direct, from among different modes of investment available under the Plan, the investment of amounts previously deferred under the Plan, all property and rights to property (including rights as a beneficiary of a contract providing life insurance protection) · purchased with such amounts, and all income attributable to such amounts, property, or fights to property. The Employer may, but is not required to, honor such request. In no event shall the Employer or Provider be liable to the Beneficiary for the amount of any payment made in the name of the Participant before the Administrator receives proof of death of the Participant. Unless the Beneficiary elects otherwise, payments to such Beneficiary shall be made in a lump sum. Subject to the following, a Participant may elect any payment option described in Section 11.2. (a) If the Participant died prior to his Reqff~red Beginning Date: ~'~ (i) if the Beneficiary is other than a natural person or a trust described in Section 11.3(vi), the entire Account balance shall be distributed within five years of the death of the Participant; (ii) if the Beneficiary is a natural person other than the surviving spouse of the Participant or is a trust described in Section 11.3(vi), the entire Account balance may be distributed in accordance with clause (i), or over a period which does not exceed the life expectancy of the Beneficiary and, if distributions had not commenced prior to the death of the Participant fifteen (15) years; and (iii) if the Beneficiary is the surviving spouse of the Participant, the entire Account balance may be distributed in accordance with clause (i), or over a period which does not exceed the life expectancy of the surviving spouse. (b) If the Participant died after his Required Beginning Date, distributions to such Beneficiary shall be made over a period of fane which does not exceed the remaining life expectancy of the Participant (or remaining joint life expectancy of the Participant and his designated beneficiary), as determined under Section 11.3 on his required Beginning Date. If distributions are made to a Beneficiary in accordance with paragraph (a)(ii) or (a)(iii) (rather than in accordance with paragraph (a)(i)), minimum distributions to the Beneficiary shall be made in each calendar year in an amount determined pursuant to the provisions of Section 11.3, using only the life expectancy of the Beneficiary. Such life expectancy shall be determined as of the birthdate of such Beneficiary in the calendar year following the Participant's death or, if the surviving spouse is the Beneficiary and delays distribution of the Account, such later calendar year when distributions commence to the surviving spouse. If distributions are made to a Beneficiary in accordance with paragraph (b), minimum distributions shall be made in each calendar year following the calendar year of the death of the Participant, such minimum amount being determined pursuant to Section 11.3. 11.5 Disability: In the event of disability of a Participant, as defined in Section 3, while he is an Employee of the Employer, the Employer shall pay to the Participant an amount equal to the balance of the Participant% book account as of the month-end following the Participant's written notice to the Employer of such disability, plus or minus subsequent gains or losses, such amount to be distributed to him/her in any one of the payment options described in Section 11.2. 11.6 Other Dislribution: Notwithstanding any other provisions of the Plan, the Employer may change the time or methods of benefit payments pursuant to this Plan. SECTION 12. PLAN TO PLAN TRANSFERS: 12.1 Pursuant to an appropriate written agreement, the Employer may accept and credit to a Participant's Account amounts transferred from another employer representing amounts held by such other employer under an eligible deferred compensation plan described in Section 457 of the Internal Revenue Code. Any such transferred amount shall not be treated as a deferral subject to the limitations of Section 5. 12.2 If a Participant Separates from Service prior to Normal Retirement Age, and becomes a Participant in an eligible deferred compensation plan of another employer (that is described in Section 457 of the Internal Revenue Code), notwithstanding the provisions of Section 11.1, such Participant may request a distribution of his Account to the eligible deferred compensation plan of the other employer. Requests for such transfer must be made in writing to the Plan Administrator and shall be granted at the discretion of the Plan Administrator. If an amount is to be transferred pursuant to this Section, the Plan Administrator shall transfer such amount directly to the eligible deferred compensation plan of the other employer. Any transferred amount shall not be treated as a defenal subject to the limitations of Section 5. SECTION 13. NON-ASSIGNABILITY CLAUSE: It is agreed that neither the Participant nor his Beneficiary, nor any other designee, shall have any right to commute, sell, assign, or otherwise convey the right to receive any payments hereunder, which payments and right thereto are expressly declared to be non-assignable; any such attempt to assign shall be void; and in the event of any attempted assignment the Employer shall have no further liability hereunder, nor shall any payments be transferable by operation of law in the event of bankruptcy or insolvency, except to the extent otherwise provided by law, notwithstanding the above clause. No forfeiture of Participant's fights under the Plan is intended hereby. SECTION 14. MISCELLANEOUS: 14.1 The City Treasurer, as Plan Administrator; is empowered to review, evaluate, and make recommendations for product providers to the City Council. Additionally, specific duties and responsibilities for overall deferred compensation plan administration axe noted below as follows: A. CITY COUNCIL - 1. Authorize, by resolution, the Anaheim Deferred Compensation Plan Document, in compliance with IRC 457. 2. Approves additions or removal of Plan Providers, as well as approves ma_ior amendments to approved plans. 3. Authorize the City Treasurer to serve as Plan Administrator for the City of Anaheim. 4. Authorize the administration of the Plan with assigned duties as follows: B. CITY TREASURER - Is designated City of Anaheim Plan Administxator for Deferred Compensation Plan for employees not covered by CALPERS and such duties include: 1. Day to day administration, including determinations of Eligible Employee status. 2. Authority to sign all legal agreements with approved Plan Providers, including minor Plan amendments. 3. Provide recommendations on adding or deleting Plan Providers, to the City Council. 4. Communicating the Plan benefits to employees. 5. Maintain a Plan Procedures Manual and related Plan documents. 6. Coordinate Plan Provider/City employee meeting schedules. 14.2 No Participant or other person shall have any legal or equitable right against the Employer except as provided in the Plan, and other than is required herein with respect to Participant Contributions, in no event shall the terms of employment of any Employee or Participant be modified orin any way affected thereby. 14.3 Each Pafftcipant herein expressly agrees for himself/herself, his heirs, successors, assignees and his beneficiaries 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 the Participant acknowledges that all amounts deferred hereunder shall be available to satisfy the general obligations of Employer. 14.4 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. 14.5 Captions used in the Plan are for the purpose of convenience only, and shall not limit, restrict or enlarge the provisions of the Plan. 14.6 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. 14.7 As used in the Plan, the masculine or feminine or neuter gender, and the singular or plural number shall be deemed to include the others unless the context clearly indicates otherwise. 14.8 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 Employer or Contract Administrator at its principal office, as applicable; 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. 14,9 Deductions for Participant's contributions to the Public Employees' Ref~rement System, Social Security, or other retirement plan or associations, shall be made without reference to Participant Conlributions, Employer Contributions, or other amounts deferred pursuant to the Plan. 14.10 A permitted leave of absence with pay shall not affect agreements to participate in the Plan. 14.11 A permitted leave of absence without pay shall be considered to be a temporary suspension of contribution in the Plan. Contribution shall be automatically reinstated in accordance with the Participation Agreement as of the first day of the next pay period subsequent to the termination of such leave of absence status. In the event of a non-permitted leave of absence without pay, the Employer at its discretion may deem such absence a revocation of the Participation Agreement. 14.12 The Employer shall make no loans or advances to the Participant or Beneficiary based upon book accounts, described herein, or upon any other obligations under the Plan. 14.13 In the event a writ of execution against a Participant's earnings is received by the Employer, said Participant's Participation Agreement may be revoked as of the date of service of said writ upon Employer. The Participant may execute a new Participation Agreement as of the entry date next following the termination of said execution pursuant to applicable State or Federal laws. SECTION 15. AMENDMENT OR TERMINATION OF PI,AN: The Employer has the sole and exclusive right to terminate this Plan for all Participants at any time. Such termination shall have no effect on the rights of the Participant with respect to Conaibutions previously made under the Plan or Deferred Compensation transferred pursuant to Section 13. The Employer may also amend the provisions of this Plan at any time; provided, however, that no amendment shall affect the rights of the Participants or their Beneficiaries to the receipt of Deferred Compensation. This Plan is intended to qualify as an eligible deferred compensation plan under IRC Section 457 and to constitute a retirement system within the meaning of the IRC Section 3121(b)(7)(F); and shall be interpreted and administered in a manner consistent with such qualifications. The Employer reserves the right to amend the Plan to the extent that may be necessary to conform the Plan to the requirements of IRC Section 457 and IRC Section 3121(b)(7)(F), and any other applicable law, regulation or ruling, including amendments that are retroactive to the effective date of the Plan. In the event that the Plan is deemed by the Internal Revenue Service to be administered in a manner inconsistent with IRC Section 457 and IRC Section 3121(b)(7)(F), the Employer shall correct such inconsistency, or terminate the Plan. The Employer reserves the right to take such action and do such things as are required to make the Plan, as administered, consistent with IRC Section 457 and IRC Section 3121(b)(7)(F). SECTION 16. TOTAL AGREEMENT: This Plan and any subsequently adopted amendment thereof, shall constitute the total agreement or contract between the Employer and the Participant regarding the Plan. No oral statement regarding the Plan may be relied upon by the Participant. The Employer hereby establishes this Deferred Compensation Plan for Employees not covered by CALPERS on the terms and conditions set forth herein. DATE: , c ^vo o 'rHE c v'o XIgt M ' C1T~ASURER OF THE CITY OF ANAHEIM ATI'E~m~) CITY CLERK OF THE CITY OF ANAHEIM