HomeMy WebLinkAboutRES.677.10-21-1991 BILL NO. 91-227 RESOLUTION NO. �
A RESOLUTION ESTABLISHING A DEFERRED
COMPENSATION PLAN FOR THE CITY OF CAPE
GIRARDEAU, MISSOURI
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CAPE GIRARDEAU,
MISSOURI , AS FOLLOWS:
WHEREAS, the City has considered the establishment of a
Deferred Compensation Plan to be made available to all eligible
city employees, elected officials, and independent contractors
pursuant to Federal legislation permitting such Plans; and
WHEREAS, certain substantial tax benefits could accrue to
employees, elected officials, and independent contractors
participating in said Deferred Compensation Plans; and
WHEREAS, such benefits will act as incentives to City
employees to voluntarily set aside and invest portions of the
current income to meet their future financial requirements and
supplement their City retirement and Social Security (if
applicable) , at no cost to the City; and
WHEREAS, The U. S. Conference of Mayors has established a
master prototype deferred compensation program for cities and
political subdivisions permitting its member cities and their
employees to enjoy the advantages of this program; and
WHEREAS, The U. S. Conference of Mayors, as Plan Administrator,
agrees to hold harmless and indemnify the City, its appointed and
elected officers and participating employees from any loss
resulting from The U. S. Conference of Mayors or its Agent's failure
to perform its duties and services pursuant to The U. S. Conference
of Mayors Program.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CAPE
GIRARDEAU, MISSOURI , DOES HEREBY RESOLVE AS FOLLOWS:
The City Council hereby adopts the U. S. Conference of Mayors
Deferred compensation Program and its attendant investment options
and hereby establishes the City of Cape Girardeau, Missouri,
Deferred Compensation Plan for the voluntary participation of all
eligible city employees, elected officials and independent
contractors.
The Personnel/Risk Manager is hereby authorized to execute for
the City, individual participation agreements with each said
employee requesting same, and to act as the "Administrator" of the
Plan representing the City, and the City Manager is hereby
authorized to execute for the City, such agreements and contracts
as are necessary to implement the Program. It is implicitly
understood that other than the incidental expenses of collecting
and disbursing the employee's deferrals and other minor
administrative matters, that there is to be no cost to the City for
the Program.
PASSED AND ADOPTED THIS ��. DAY OF ��Q�1�'J�/ , 19�.
� J�4� _ � :���
. ,
ATTEST: � David S. Limbaugh, Mayor Pro Tem
Julie . Dale, Deputy City Clerk
In the Matter of: ESTABLISHING A DEFERRED COMPENSATION PLAN FOR
THE CITY OF CAPE GIRARDEAU, MISSOURI
I, Julie A. Dale, Deputy City Clerk of the City of Cape Girardeau,
State of Missouri, do hereby ce tify that ,the following resolution,
proposed by Councilmember �� �
seconded by Councilmember Il'1R�l�,L r �
was duly passed and adopted by the Council of the City of Cape
Girardeau, Missouri, at a regular meeting thereof assembled this
�, �t day of �C��bQX , 1991, by the following
vote, to-wit:
AYES: COUNCILMEMBERS: �Q.�'k. P Limb�� Ri�l�ards, Sr�rQ�.I i na�
1 h, e., (� �l� rs
NOES:
ABSENT: N
Dep y City Clerk, City of Cape Girardeau, Missouri
• • UNITED STATES CONFERENCE OF MAYORS
DEFERRED COMPENSATION PROGRAM
CITY ADMINISTRATIVE AGREEMENT
This agreement is executed by and between the United States Conference of Mayors(USCM►
of Washington, D.C., and the City of (City1.
RECITALS
I. THE PROGRAM:
USCM has established a Master Deferred Compensation Program for Cities,permitting Cities,
other local government agencies and their employees to enjoy the advantages to be derived
from Section 457 of the Internal Revenue Code.
The intent of the Program is to assist Gities and their employees in establishing an increased
measure of financial security by providing for additional retirement income through the
deferral of before-tax dollars and the reduction of current income tax liability thus offsetting
the effects of inflation on their ultimate retirement benefits.
The Program will provide Cities with a new w•ay to help employees help themselves by
providing an attractive incentive to build a voluntary fund for their supplemental retirement
income requirements.
The Program K�ill be provided at no cost to Cities other than incidental expenses related to
payroll deductions.
II. REGULATORY CONSIDERATIONS:
USCM has received opinion of counsel that the Program meets all necessary criteria for
approval by all federal regulatory authorities governing such Programs, includ.ing the Internz.]
Revenue Service.
III. COMPETITIVE BID PROCESS:
USCM has conducted a competitive Bid selection process on behalf of its Member Cities and,
as a result of careful evaluation of adminiscrati��e abilities and experience, has selected those
insurance and investment institutions proposing the most attractive combination of costs,
benefits and services.
An independent actuary was retained to re��iew the costs, benefits, services and investment
yields of the products offered under the Program to insure their competitive balance in the
marketplace and to best meet the needs of inember cities.
This Bid selection process was performed by LSCT�4 in order to comply as closely as possible
with governmental purchasing procedures.
IV. PROGRAM ADMINISTRATOR:
USCA4 has agreed to sponsor the Program and has selected and contracted ��ith an
independent plan administrator eminentl�� qualified to accepl and fulfill the responsibilit�•
for all administrati�•e requirements necessar�' for the successful operation of the Program.
APO-639-A 1�%��I
. V. CITY CONSIDERATION:
' City recognizes Chat such tax-deferred savings benefits will act as incentives for employees
to voluntarily set aside and invest portions of their current income to meet their future
financial requirements and supplement their City retirement income.
City recognizes chat chrough the adoption of the USCM Program, all such regulatory,
operational,administrative and other Program management responsibilities are assumed by
USCM on behalf of City, in accordance with the Plan document.
City tecognizes the important contribution of USCM's technical expertise in the design,
implementation and administration of a national Program established and administered in
compliance with all applicable regulatory jurisdictions.
City recognizes the advantages and economies of scale secured by the mass purchasing
]everage of USI:M :�nd Cities through a comprehensive bid selection analysis.
City recognizes the benefits of�SC?�4's establishment of a functional administrative system
on behalf of Cities to adrninister the Program.
City has enacted the necessary resolution/court order to adopt the USCM Plan Agreement
and to establish its Deferred Compensation Program for its employees.
VI. USCM RESPONSIBILITIES:
NOW, THEREFORE, it is agreed that USCM shall:
p. Provide City Rzth a Deferred Compensation Plan Agreement and necessary agreements
for execution with its participating employees which is and will be maintained in
compliance with the provisions of the Internal Revenue Code.
B. Establish the o��erall Program, its funding options and administrative operations so
as to comply with other regulatory authorities,including state statutes, constitutional
restrictions and other appropriate authorities.
C. Provide City with such technical assistance as;s necessary to implement the Program
in accordance w-ith the needs and objectives of the City's individual requirements.
D, V�'arrant that it has conducted,on behaif of Cities, a comprehensi�•e bid selection process
designed to pro��ide the rnost competitive combination of costs, benefits, and services
for Cities and their empioyees.
E. Review annually the administrative, operational and financial performance of such
selected companies and take such actions as are necessary to assu:e the City and its
employees the best possible continuity of costs, benefits and services.
F. Provide a comprehensive administrative sen�ce system to facilitate employee defenals,
reconciliations, disbursements to the investment media, maintenance of the individual
and Citv account records, provide periodic statements and coordinate employee
distributions, and assure proper tax reporting systems.
G. Pro�•ide such accounting and audit systems as are necessary to insure the fiscal integrity
of the Program and to provide City with reports and work papers as are reasonably
necessar}• to meet the City's ir.divid��al financial reporting requirements;
H. Provide for an initial and continuous emplo}�ee educational program to make certain
all interested City emplo}�ees receive a thorough understanding of the overall Program,
its ad�•antages and restricti�•e provisions of the Program.
• I, Provide such employee communication melerials and other forms. documents and
agreements as are necessary to administer the Program.
J, Provide the City and its employees such convenience and timeliness of individua]
services as are required for effective employee understanding of participation,
VII. CITY RESPONSIBILITIES:
NOW, THEREFORE, it is agreed that the Cily shall:
p, Provide USC?�I its full cooperation and support ir, administering the necessary deferral
system for employee contributions.
B. Disseminate from time to time such promotional material as provided by USCM for
' employee distribution.
C. Arrange for representatives of USC�4's Program to conduct orientation meetings with
City employees.
D. Name a City official oratters relatin� to ctivi iesaof he Program.r on behalf of the
City on all material m g
E. Accept the terms and conditions of the insurance and investment company contracts
as represented by USCM pursuant to the operation of this Program.
F. Assist USCM and the Plan Administrator, as necessary, in the development of
comprehensive investment and ser��ice specifications.
It is mutu o Yo a�ion (BSCOgto act as it Agent an f lfilling cerPt n1ofEhe adminssBtrativ�e
Services C p
and mazketing requirements of this Agreement.
If USCM or PEBSCO unsatisfactorily perform the responsihilities and services pursuant to
this Agreement, the City shall give notice to both USC!�i and PEBSCU specifically stating
the nature of USCI�4 or PEBSCO's failure to perform. If the specified default is not conected
within ninety (901 days follow•ing the notice of default by the City, the City may terminate
this Agreement.
This Agreement is effective until written notice of termination is pro.�ided by either party.
CITY UNITED STATES CONFERENCE OF MAYORS
Eaecutive D'uector
D ate D ate