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HomeMy WebLinkAboutRES.451.08-07-1989 BILL N0. 89-157 RESOLUTION N0. A RESOLUTION ESTABLISHING A TAX SAVINGS PLAN FOR EMPLOYEES OF THE CITY OF CAPE GIRARDEAU, MISSOURI , AND DECLARING THE CREATION OF A TRUST, AUTHORIZING THE CITY MANAGER TO ENTER INTO A TRUST AGREEMENT WHEREAS, there as been presented to a meeting of the City Council of Cape Girardeau, Missouri , a copy of the Declaration of Trust creating the "City of Cape Girardeau, Missouri, Tax Savings Plan and Trust" ( the "Plan and Trust" ) ; and F7HEREAS, after_ fu11 discussion, adoption and execution of the same, it appears to be in the best interest of the City of Cape Girardeau, Missouri , and its employees; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CAPE GIRARDEAU, MISSOURI , AS FOLLOWS : SECTION 1 . That the "Plan and Trust" presented to the meeting of the City Council be and it hereby is adopted and approved by the City Council of Cape Girarceau , Missouri , an� the City Manager of Cape Girardeau is hereby authorized and directed to execute the "Plan and Trust" on behalf of the City of Cape Girardeau, Missouri , and the City Clerk is hereby authorized and directed to attest the same and to certify copies thereof and of this Resolution to United Missouri Bank of Kansas City, N. A. . SECTION 2 . Be It Further Resolved, that a copy of the "Plan and Trust" be attached to and made part of the minutes of the meeting of the City Council wherein this Resolution was adopted . SECTION 3 . Pursuant to the "Plan and Trust" , the City of Cape Girardeau is to act as the Plan Administrator . SECTION 4 . The City of Cape Girardeau desires to name Karen J. Strong to act on its behalf as Plan Administrator . SECTION 5 . It Is Further Hereby Resolved, that Karen J. Strong is appointed to serve on behalf of the City of Cape Girardeau ' s Plan Administrator and that the Trustee of the Plan and Trust may rely upon this appointment and that the sample signature of Karen J. Strong is indicated below. � � - PASSED AND APPROVED THIS �� DAY OF , 1989 . _ � � rancis E. ho es, ayor ATTEST: . ,0 Eve yn . LeGran , City C er I hereby accept the appointment as the representative of the City of Cape Girardeau, Missouri , in acting as Plan Administrator . / �� - -� ; � , �� `_� t , ��. , U�� ��; C , - •- . Karen J. St�ong r- , _ TS-F-7 (�-39) City of Cape Girardeau, llissouri TAX SAVINGS PLAN AND TRUST City of Cape Girardeau, Missouri hereby establishes for its employees a Tax Savings Plan pursuant to the provisions of Section 125 of the Internal Revenue Code of 1986 and a related trust as created by the agreements set forth herein, hy and between City of Cape Girardeau, Missouri (sometimes hereinafter referred to as the "Employer") and UNITED MISSOURI BANK OF KANSAS CITY, Pd.A. (sometimes hereinafter referred to as "Trustee"). In consideration of the premises and of the acceptance of this trust by the Trustee, it is agreed by and between the parties hereto : ARTICLE ONE NAME AND EFFrCTIVE DATE 1.01 The name of the plan established hereby is "City of Cape Girardeau, :�fissouri Tax Savings Plan." The Effective Date of the Plan is August 1, 1989 ARTI CL= n�JO DEFIN?iIONS 2.01 "Account means the account or accounts maintained une�er the Plan by the Trustee for each ?articipant and to which aliocat;ons of Employer contributions are made as required by the Plan, and from which benefit payments, as permitted by the Plan, shall be paid. 2.u2 "Committee" or "Administrative �ommittee" means the committee e�tablished pursuant to Article Eight. �.u3 "Emplo�e2" „�eans any persor. empleyed �y the Employer who regularly works 17 1/2 hours or more per week for the Employer on a permanent basis. ?.�J� "Employer" means City of Cape Girardeau, Missouri 2.05 "Participant" means any Employee who has elected to and is participating in the Plan. 2.06 "Plan Year" means the calendar year. The initial Plan Year shall be the period commencing August 1, 1989, and ending May 31, 1990. 2.07 "Spouse or Dependent" means the spouse or dependent of a Participant within the meaning of Section 125 of the Internal Revenue Code of 1986, as amended. 2.08 "Trust" shall mean the legal entity resulting from this agreement between the Employer and the Trustee pursuant to which Employer contributions are received, held and disbursed. 2.09 "Trustee" shall mean the United Missouri Bank of Kansas City, N.A. , and any successor thereto by merger or consolidation, and shall also include a successor Trustee. ARTICLE THREE ARTICLE OF PURPOSE 3.01 The purpose of this Plan is to provide to Participants the tax savings opportunities permissible under Section 125 of the Internal Revenue Code. 3.02 The Plan will be "nondiscriminatory" as such term is used in Section 125 of the Internal Revenue Code, and the Employer will take such action as may be necessary to maintain the Plan as "nondiscriminatory" under said Code section. 3.03 Although this Plan is established pursuant to Section 125 of the Internal Revenue Code and is a separate written benefit plan in order to comply therewith, it shall also serve as and constitute an amendment to any employee welfare benefit plans presently in effect for the employees of the Employer, to the extent necessary to avoid any conflict betr�een this Plan and such employee welfare benefit plan. Accordingly, to such extent, this document shall be deemed an amendment to each of said welfare benefit plans (if any) in order to permit the benefits of this Plan to be fully impiemented for Participants. ARTICLE FOUR ELIGIBILITY AND PARTICIPATION 4.01 This Plan does not apply to any individual who terminated employment with the Employer prior to the Effective Date of the Plan unless such individual becomes reemployed by the Employer on or after such Effective Date. 4.02 Any Employee who is on the payroll of the Employer as of the Effective Date is eligible to becone a Participant and shall remain eligible during the continuation of employrrent and of the Plan. 4.03 Any person who becomes an Employee after the Effective Date is eligible t0 become a Participant during the second month of employment � and eligibility to participate shall continue during the period of employment and continuation of the Plan. 4.04 Subject to the provisions of subparagraph 4.05 of this Article Four, an eligible Employee shall become a Participant with respect to any Plan Year upon providing authorization to the Employer to convert a Permissible Amount of such Employee's future compensation for the Plan Year from direct compensation payable to the Participant, to the credit of the Participant's Account maintained by the Trustee under this Plan. Such authorization shall be made in writing and on a form provided by the Employer. For purposes of the first sentence of this paragraph the term "Permissible Amount" (unless and until subsequently changed by appropriate action of the Administrative Committee and notice of such change provided to all Participants) means an amount or amounts determined by the Participant which is (are) not more than two thousand d011drS ($ 2�000.00 � in the case of the benefit described in Section 5.01(a) hereof; not more than zero dollars ($ 0.00 � in the case of the benefit described in Section 5.01(b) ; not more than zero dolldr5 ($ 0.00 � in the case of the benefit described in Section 5.01(c) hereof; not more than zero dollars ($ . 0.00 � in the case of the benefit described in Section 5.01(d) ; and not more than the total of maximum amounts set forth above in the case of the benefit described in Section 5.01(e) . In the event of any change in the Permissible Amount the resulting new Permissible Amount must be nondiscriminatory (as defined in Section 125 of the Internal Revenue Code) in its application to Participants. 4.05 Except as otherwise provided in this subparagraph, the authorization required by the provision of subparagraph 4.04 above must be completed and filed with the Administrative Committee prior to the first day of the Plan Year with respect to which such authorization applies. With respect to the initial Plan Year the required authorization must be filed with the Committee no later than the Effective Date. 4.06 Following commencement of any Plan Year with respect to which an Employee elects to participate in the plan, the authorization filed with the Administrative Committee for such Plan Year may neither be changed nor revoked, except as provided in this subparagraph. In the event of a change in the family status of a Participant after commencement of a coverage period, a prior election of any benefit may be revoked by the Participant during the coverage period, and a different election made with respect to the remainder of the relevant coverage period; provided that both the revocation of the prior election and the new election are made on account of and in a manner consistent with the change of family status. Marriage or divorce, death of a Spouse or Dependent, the birth or adoption of a child, or the termination of employment of a Spouse, shall be deemed to be changes in the family status of the affected Participant. Any question concerning the occurrence of a change in family status of a Participant shall be conclusively determined by the Administrative Committee. In making such determination, all similarly situated Participants shall be similarly treated. The Administrative Committee may allow for changes for reasons other than a change in family status, if such change is in conformance with Internal Revenue Service statements and does not adversly affect the status of the Plan. ARTICLE FIVE AVAILABLE SELECTION OF BENEFITS S.OI In general , available funds credited to a Participant' s Account may be applied, in whole or in part, to the payment of one or more of the fo7lowing benefits as may be selected by the Participant. (a ) To the Participant' s share of the cost or premium for coverage under any plan or program which provides medical benefits or health insurance to or on behalf of any Employee or Spouse or Dependent in the event of illness or personal injury to the Employee or Spouse or Dependent, which plan or program is available to the Employee by reason of his or her status as an Employee. The term "plan or program" , for purposes of this Article, shall expressly include any Health Maintenance Organization (HMO) to which the Employer makes a contribution on behalf of a Participant. (b) To the reimbursement of amounts expended by a Participant for medical care of the Participant or Spouse or Dependent, which such amounts are not covered, or reimbursable to the Participant under a plan or program described in subparagraph (a) above. Anything to the contrary herein notwithstanding, a determination by the Participant to the effect that any amount claimed hereunder is not covered or reimbursable under such plan or program shall be conclusive for purposes of this Plan. � (c) To the payment or reimbursement of employment-related expenses for the care of a Spouse or Dependent of the Participant, pursuant to the terms of the separate but related dependent care plan of the Employer, established concurrently with this Plan. (d) To the payment of the Participant's share of t�e cost or premium for coverage under any plan or program which provides group term life insurance covering the Participant's life, which plan or program is available to the Employee by reason of his or her status as an Employee. (e) Cash. ARTICLE SIX GENERAL PROVISIONS REGARDING BENEFITS 6.01 Any health-related expenditures which meet the criteria as a deductible medical expense under Section 213 of the Internal Revenue Code will be eligible for payment or reimbursement (subject to the provisions of subsection 5.01(b) of Article Five) to the extent of available funds in the Participant's Account. Claims paid by any medical benefit plan, whether or not maintained by the Employer, are not reimbursable under this Plan. 6.02 Claims for rei�bursement of health-related expenditures must be submitted to the Administrative Committee and accompanied by paid invoices or such other reasonable evidence of the expenditure for which reimbursement is claimed, as may be satisfactory to the Committee. Such evidence may consist of the Participant' s statement or certificate respecting the expenditure for which reimbursement is claimed, In no event shall it be the responsibility of the Trustee or Committee to make inquiry concerning the accuracy of any such statement or certification. 6.03 No expenditure of any nature shall qualify for payment or reimbursement under this Plan unless the expense is incurred by the Participant or Spouse or Dependent to whom the expense relates, during a period of coverage. For purposes of this Plan a "period of coverage" is any Plan Year (including an initial short Plan Year) with respect to which the expense is related to a particular benefit which has been elected by the Participant. In the case of inedical expenses, an expense will be considered as having been incurred at the time the medical care related to the expense is provided, and not at the time the expense is charged, billed or paid. Similarly, in the case of dependent care expenses, an ' expense will be considered as having been incurred at the time the dependent care related to the expense is provided. 6.04 tJithin thirty {30) days following the end of each Plan Year the Trustee shall provide to each person who was a Participant at any time during the P1an Year an accounting statement reflecting contributions to and distributions from each Account established for the Participant with respect to such Plan Year, and such other information as may be required by regulations promulgated by the Secretary of the Treasury or his delegate. ARTICLE SEVEN CONTRIBUTIONS TO THE TRUST - DUTIES AND POWERS OF THE TRUSTEE 7.01 Contributions to the Trust shall be made only by the Employer, and shall be made in accordance with such of the following methods as the Employer sha11 select for each Plan Year: (a) PREFUNDING tdETHOD (1) On, or as of, the first day of each Plan Year, the Employer shall cause to be contributed to the Trustee for credit to the respective Account of each Participant for such Plan Year, in the same manner hereinafter provided, an amount equal to the sum of the Permissible Amounts elected by a11 Participants for all benefits selected for the Plan Year, as evidenced by authorization forms executed by the Participants in accordance with subparagraph 4.04 of Article Four. Except as otherwise provided by the provisions of subparagraph 4.06 of Article Four, no Account shall thereafter be increased during the Plan Year, and shall be decreased only by payments made to or on behalf of the Participant for whom the Account is maintained. (2) As an alternative, the Employer may, in coordination with the Trustee, elect to prefund on a quarterly or semiannual basis, amounts equal to one-fourth or one-half respectively, of the sum of the Permissable Amounts. The first such amount that is so prefunded shall be contributed to the Trustee not later than the first day of each Plan Year and the first day of each quarter or semiannual period thereafter. (b) PERIODIC-FUNDING METHOD. On each Employee pay date during each Plan Year the Employer shall cause to be contributed t� the 7rustee for credit to the respective Account of each Participant, as hereinafter provided, an amount equal to the sum of the Permissible Amounts elected by all Participants for all benefits selected for the Plan Year (as evidenced by duly executed authorizaiton forms), divided by the number of pay dates in the Plan Year. 7.02 Each contribution to the Trustee shall be accompanied by a listing prepared by the Employer identifying each Participant for whose Account the contribution is being made, the Social Security Number and Employee � Number of the Participant, and such other information as the Trustee may reasonably require of the Employer, 7.03 The Trustee shall keep and maintain accurate records of the contributions made by Employer and shall receive, hold, and administer all such contributions in accordance with the provisions of this agreement, as amended from time to time. The Trustee shall be responsible only for such funds and assets as shall actually be received by it hereunder, and shall , to the extent practicable, invest all such funds not required to meet immediate obligations of the Trust in highly liquid short-term fixed income securities, including accounts in the commercial division of the Trustee. 7.04 Any funds remaining to the credit of a Participant' s Account as of the the last day close of business on ���,�of the Plan Year during which such funds have been deposited with the Trustee, shall be forfeited and revert to the Employer; provided, however, that all such funds shall be held for a period of not less than sixty (60) days following the end of the Plan Year and be applied to the payment or reimbursement of covered expenses of the Participant incurred during the Plan Year of deposit, to the extent that claims for payment or reimbursement, accompanied by appropriate evidence of the related expenditures or obligations, are submitted to the Administrative Committee within such period. 7.05 The Trustee shall render an annual report to the Employer within sixty (60) days following the end of each Plan Year. Such report shall contain a complete accounting showing the total funds of the Trust as of the last day of the Plan Year and all receipts and disbursements since the last such report. Upon written request of the Employer or the Administrative Committee, the Trustee shall prepare such other reports, publications, statements, and tax return information, as the Trustee shall agree to undertake. 7.06 The Trustee shall have the following powers in addition to those vested elsewhere in this Agreement or by law: (a} To acquire and hold any securities or other property of the Trust without disclosing its fiduciary capacity, or in the name of any other person, with or without a power of attorney for transfer thereto attached; (b) To make, execute and deliver any and all instruments necessary or proper for the effective exercise of any of the Trustee's powers as stated herein or otherwise necessary to accomplish the purposes of this Trust; (c) To make payments of benefits on behalf of Employees and their beneficiaries, either directly or indirectly, on the instruction of the Administrative Committee; (d) To maintain the Trust assets in cash and unproductive of income, with no requirement to pay interest on cash balances; (e) To determine what is principal and what is income; (f) To invest available funds in short-term fixed income securities, including, but without limitation, any money market mutual fund, any commingled money market fund managed by the Trustee, or any account maintained by Trustee in the commercial division of the 7rustee. 7.07 The Trustee shall be entitled to advice of counsel (who may be counsel for the Employer) in any case in which the Trustee shall deem such advice necessary. With the exception of those powers and duties specifically allocated to the 7rustee by the express terms of this Trust, it shall not be the responsibility of the Trustee to interpret the terms of this agreement, and the Trustee sha11 be entitled to receive guidance and written direction from the Administrative Committee on any point requiring construction or interpretation of this agreement. 7.08 The Trustee shall be entitled to payment or reimbursement from the Employer for all reasonable costs, charges and expenses incurred in connection with its administration of the Trust Fund, including fees for legal services rendered to the Trustee. Such reasonable compensation to the Trustee as may be agreed upon from time to time between the Employer and the Trustee, shall be paid by the Employer. All such costs, charges, expenses and fees, unless paid by the Employer, shall be a lien against the Trust and may be paid by the Trustee from the funds of the Trust. 7.09 The Trustee shall be protected in acting on any notice, direction, certificate or other paper or document reasonably believed to be genuine and to have been executed by a Participant or the Employer. 7.10 Any Successor Trustee shall have all of the title, interest, rights, privileges and duties as the Trustee named herein. ARTICLE EIGHT ADMINISTRATION 8.01 The Employer, through the action of its Board of Directors or, if no B�ard of Directors, its governing body, shall appoint a Committee of three or more persons, at least a majority of whom are Employees, to be known as the Administrative Committee (herein sometimes referred to as the "Committee"). Members of the Committee shall hold office at the discretion of the 8oard, and shall serve as such until their respective successors are appointed. 8.02 All usual and reasonable expenses of administration of the Plan and of the Committee shall be paid by the Employer. 8.03 Neither the Employer, 7rustee, nor the Committee, nor any member thereof, makes any guarantee to any Participant that participation in the Plan is appropriate for any Participant or for any loss which may result because of the Participant's participation in the Plan. 8.04 The Committee, by majority vote, shall make all determinations required respecting ad�inistration of the Plan, including determinations as to the right of any person to a benefit under this Plan. 8.05 Any denial by the Committee of a claim for benefits by a Participant shall be stated in writing and be delivered or mailed to the Participant; and such notice shall set forth the specific reason for the denial , The Committee shall also afford to any Participant whose claim for benefits has been denied, a reasonable opportunity for review of the decision denying the claim. 8.06 The Committee shall exercise such authority and responsibility as it deems appropriate in order to comply with the terms of the Plan relating to the records of Participants and amounts payable under the Plan. 8.07 The Committee may adopt such rules as it deems necessary, desirable or appropriate, All rules and decisions of the Committee shall be uniformly and consistently applied to all Participants in similar circumstances. 8.08 The Committee sha11 have such powers as may be necessary to discharge its duties hereunder, including, but not by way of limitation, the following: (a) to construe and interpret the Plan, decide all questions of � eligibility, and determine the amount, manner and time of payment of any benefits hereunder; (b) to prescribe procedures to be followed by Participants in filing applications for benefits; (c) to prepare and distribute information explaining the Plan; (d) to appoint individuals to assist in the administration of the Plan and any agents it deems desirable, including legal and actuarial counsel . 8.09 The Committee shall have no power to add to, subtract from or modify any of the terms of the Plan, or to authorize or permit the payment of or reimbursement for any obligation or expense of a Participant incurred during a period when the individual was not a Participant. 8.10 Each member of the Committee shall be indemnified by the Employer against any and all liabilities arising by reason of any act or failure to act made in good faith while acting in the capacity as a member of the Committee. ARTICLE NINE M:SCELLA�VEOUS 9.01 No Participant sha71 have any right to, or interest in, any assets of the Trust upon termination or otherwise, except as provided from time to time under this Plan, and then only to the extent of the benefits payable under the Plan to such Participant. A11 payments of benefits provided for in this Plan shall be made solely out of the assets of the Trust. 9.02 � Except as otherwise provided by subparagraph 7.08 above, benefits payable under this Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnish�ent, execution, or levy of any kind, either voluntary or involuntary. ARTICLE TEN AMENDMENTS AND TERMINATION 10.01 The Employer reserves the right to make amendments to the Plan at any time and from time to time. any amendment to the Plan may be made with retroactive effect if determined to be necessary or desirable to comply with any law or regulation. P7o amendment, however, may expand or diminish the powers or duties of the Trustee unless the Trustee consents in writing thereto. 10.02 The Employer may terminate the Plan at any time. 10.03 Upon the termination of the Plan the Accounts of all Participants affected thereby shall continue to be held by the Trustee for distribution in accordance with the purposes and relevant provisions of the Pla�. If not so distributed within ninety (90) days following the close of the Plan Year during which the Plan is terminated, balances shall thereupon be forefeited and revert to the Employer. ARTICLE ELEVEN RESIGPJATION AND REMOVAL OF TRUSTEE 11.01 Unless altered by the Employer and Trustee by other written document, the Trustee and any successor Trustee may resign from the trusteeship hereof at any time by giving at least sixty (60) days written notice of such resignation to the Employer, and any Trustee may be removed by the Employer upon at least sixty (60) days written notice of such removal to the Trustee. The Employer shall , by an appropriate instrument in writing, appoint a successor Trustee in the event of vacancy in the trusteeship resulting from the resignation or removal of the Trustee, and before entering upon its duties, such successor Trustee shall execute an instrument evidencing its acceptance of the Trust and its agreement to be bound by all terms and provisions thereof. The successor Trustee shall have all rights, powers, privileges, liabilities, duties and immunities of the former Trustee. 11.02 Upon the acceptance of appointment by such successor Trustee, the former Trustee shall make a final accounting of its administration of the Plan Trust for the period of time elapsed since the preceding accounting, and shall deliver and transfer the Plan Trust to such successor Trustee. Upon approval by the Employer of, or upon its failure to object to, such final accounting, the former Trustee shall thereupon be finally released and discharged, all as herein provided with respect to annual accountings. IN WITNESS WHEREOF, the �mplayer and the Trustee have caused this instrument to be executed in multiple counterparts by their duly authorized officers on this day of , City of Cape Girardeau, *4issouri ATTEST: gy Title Empl oyer UNITED MISSOURI BANK OF KANSAS CITY, N.A. ATTEST: gy Secretary i e Trustee