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HomeMy WebLinkAboutCity of Tamarac Ordinance O-1975-046i CITY OF TAMARAC, FLORIDA ORDINANCE NO. 544(0 - AN ORDINANCE ESTABLISHING THE CITY OF TAMARAC A DEFERRED COM- PENSATION PLAN, PROVIDING FOR THE CITY MANAGER TO ACT ON BEHALF OF THE CITY OF TAMARAC, REPEALING ALL ORDINANCES IN CONFLICT, PRO- VIDING A SAVINGS CLAUSE, PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Tamarac, Florida has in its employ certain personnel, and WHEREAS, said employees are and will be render- ing valuable services to the City of Tamarac, and WHEREAS, the City of Tamarac has considered the establishment of a Deferred Compensation Plan for the said employees made available to the City of Tamarac, Florida and to said employees by the Equitable Life Assurance Company, and WHEREAS, said employees often are unable to acquire retirement security under other existing and available re- tirement plans due to the contingencies of employment mobility, and WHEREAS, the City of Tamarac, Florida, receives benefits under said plans by being able to assure reasonable retirement security to said employees, by being more able to attract competent personnel to its service, and by in- creasing its flexibility in personnel management through elimination of the need for continued employment for the sole purpose of allowing an employee to qualify for retire- ment benefits, and WHEREAS, Chapter 75-295 of the Florida Statutes permits a municipality to adopt a Deferred Compensation Plan effective July 1, 1975, and WHEREAS, the City Council of the City of Tamarac, Florida deems it to be in the best interest of the citizens of the City of Tamarac to adopt a Deferred Compensation Plan. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF TAMARAC, FLORIDA: SECTION 1: That the City of Tamarac, Florida establish a Deferred Compensation Plan including legisla- tive officials and hereby authorizes its Mayor to execute the Deferred Compensation Plan with the Equitable Life Assurance Company, said Plan being attached hereto as Appendix "A". SECTION 2: That the City Manager of the City of Tamarac, Florida may, on behalf of the City of Tamarac, Florida, execute all joinder agreements with and officers, its employees which are and other eligible officials necessary for said persons participation in the City of Tamarac Deferred Compensation Plan, a copy of said Joinder Agreement is attached hereto as Appendix "B". SECTION 3: That the required Joinder Agreement for a designated official eligible for participation in said Deferred Compensation Plan shall be executed by the Mayor of the City of Tamarac, Florida. SECTION 4: Should any section or provision of this Ordinance or any portion hereof or any paragraph, sentence or word be declared by a Court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or any part hereof other than the part declared to be invalid. "50M 40 Fj SECTION 5: All Ordinances or parts of Ordinances, all section of the Tamarac City Code or parts thereof in conflict herewith be and the same are hereby repealed. SECTION 6: This Ordinance shall become effective immediately upon its final passage. PASSED FIRST READING thisI-Lvday of M6J'e1M 1n1X, 1975. PASSED SECOND READING this0 day of &-r,1975. PASSED THIRD READING this�mmday of (r,1975. ATTEST: CI Y CLERK I HEREBY CERTIFY that I have approved the form and correctness of this Ordinance. uI►y\ \ Yy\ assc� r-v CAI v n Lk-C-1c.�LA z=a � a,� =910 DEFERRED COMPENSATION PLAN The City of Tamarac Deferred Compensation Agreement is in accordance with Ch. 75-295 F.S. which authorizes the adoption of a plan as its agreement with participating employees and the employees shall participate in the plan through the Joinder Agreement, which by its terms incorporates all of the provisions of the plan. A copy of the plan will be provided to each employee subsequent to execution of the Joinder Agreement. This plan may be amended.from time to time for purposes of assuring its conformance to the requirements of any applicable State and Federal laws and regulations and to preserve the tax-exempt status of the Plan. Section 1. PURPOSE - The primary purpose of this plan is to attract and hold certain key individuals by permitting them to voluntarily participate in a plan which will provide for monthly payments on retirement, as well as death benefits in the event of death before retirement. Section 2. DEFINITIONS - For the purposes of this plan, certain words or phrases used herein will have the following meanings: a. "Compensation" shall mean any payments for normal or contracted services rendered by the participant to the organization. b. "Deferred Compensation" shall mean the amount of compensation not yet earned, which the participant and the organization mutually agree shall be deferred in accordance with the provisions of this plan. C. "Retirement" shall mean a retirement from service with the organization which may be any age beyond and including 55. d. "Organization" shall mean City of Tamarac. e. "Participant" shall mean any employee who fulfills the eligibility and enrollment requirements of this plan. f. "Plan" shall mean the City of Tamarac Deferred Compensation Plan. g. "Termination of Services" shall mean the severance of the participant's contract or employment with the organization prior to retirement. de APPENDIX "A" Section 3. ADMINISTRATION - This plan shall be administered by the employer. Section 4. PARTICIPATION IN THE PLAN a. Eligibility - Any employee, elected officials, or independently contracted person whom the organization designates as eligible to participate. b. Enrollment in the Plan: .(1) An initial enrollment period will be held from November 15, 1975 to December 31, 1975 for eligible persons who agree to defer compensation not yet earned. (2) Open enrollment periods will be held for those Employees who desire to participate in the Plan and did not enroll at the time the Plan was implemented. This open enrollment period will be from December 1 until December 31 and June 1 until June 30. All completed forms, including but not limited to the signed Agree- ment and Authorization to Deduct from earnings, must be received by the Employer on or before January 1 and July l prior to enrollment periods. (3) There is no maximum or minimum "contribution" under this plan. (4) Contributions may be terminated and funds in the account "frozen" subject to a waiting period of six months. Section 5. BENEFITS UNDER PLAN a. The plan provides for alternative types of payment as follows: (1) Deferred compensation payments (or cash value equivalent where paid in other than the normal form of annuity), payable on the happening of any of the following events: a. retirement of a participant; b. withdrawal from plan; c. termination of services of a participant. (2) Death benefits (or cash value equivalent when paid in other than the normal form of 120 months certain), payable when a participant dies before deferred compensation payments start. -2- b. The organization and the eligible person will execute an agreement in writing, confirming their assumptions of the obligations set forth in this plan, and the amounts of compensation to be deferred. The factors in determining the amounts°of deferred compensation payments and death benefits are the amount of deferred compensation, the age at the time compensation is deferred, and the age at the time of retirement, termination, or death. For the purpose of computation of the amounts of benefits hereunder, the participant's age at the time any compensation is deferred will be that of the participant's birthday nearest to the date of commencement of the agreement to defer compensation. The deferred compensation payments and the death benefits with respect to the participant or beneficiary for which such payments are being determined will be an amount equal to the amount payable under a fixed or variable life insurance policy or annuity contract purchased by the organi- zation on the life of the participant with a premium equal to the amount of compensation that had been deferred. c. (1) Subject to the provisions hereof, the organization agrees to pay deferred compensation payments at the request of the employee in accordance with the terms of the employee's contract. (2) If a participant has qualified to receive deferred compensation payments and such particpant dies before receipt of all 120 monthly payments, the organization agrees to continue to pay such monthly payments for the balance of the 120-month period to the particpant's designated beneficiary or the participant's estate. (3) A participant may designate one or more beneficiaries and may name contingent beneficiaries to whom the benefits will be payable upon death of any designated beneficiary. The participant will also have the right to change his designation of beneficiaries. (4) In the event that a particpant's beneficiaries die before all monthly benefit payments become payable to such beneficiaries, whether under 5 c (2) or 5 c (3) above, then the computed value (at a rate of interest decided upon by the organization) of such monthly benefits will be paid by the organization to the estate of the last surviving beneficiary. -3- (5) In the event of a participant's retirement, termination of services, or death so as to require payment of benefits under this plan; the organization may elect to honor a request from the participant (or in the case of his death, his beneficiary) to substitute the transfer and assign- ment of any or all life insurance policies or annuity contracts which the organization may have acquired in connection with such participant's participation in the plan, to the said participant (or in the case of his death, his beneficiary) provided the organization has actually acquired such policies or contracts. By such action, all obligations to the organization for the payment of benefits under this plan to such participant or beneficiary will cease, terminate, and expire. Section 6. WITHDRAWALS - A participant may apply for withdrawal of funds from the plan prior to retirement or other termination of the participant's services with the organization. If such application for withdrawal is requested, the withdrawal will be effective as specified in the participant's applica- tion or the date of approval of the committee. Upon approval of the Committee, it shall treat each such participant who withdraws his funds as if he had terminated his services. An employee will not be eligible to rejoin the plan until six months after the date of withdrawal. Section i. LEAVE OF ABSENCE - If a participant is on approved leave without compensation, he may remain in the plan. Section 8. AMENDMENT OR TERMINATION OF PLAN - The organization may at any time terminate this plan. Upon such termination, the participants in the plan will be deemed to have withdrawn from the plan as of the date of such termination, the participant's full compensation on a non --deferred basis will be thereupon restored, and the organization agrees to pay participants the amount of money determined as if the participant had terminated his service, the payment to be made in a lump sum or in five substantially -equal annual installments, commencing on the effective date of such termination, or to be postponed until the participant's retirement, termination or services, or death, in the sole discretion of the organization. The organization may also amend the provisions of this plan at any time; provided, however, that no amendment shall affect the rights of participants or their beneficiaries 'to the receipt of payment of benefits, to the extent of any compensation deferred at the time of the amendment as adjusted for investment experience hereunder prior to and subsequent to the amendment. -4- Section 9. INVESTMENT - The organization may invest the funds and assets of the deferred compensation of a participant by the purchase and payment of premiums of a fixed or variable life insurance policy or annuity contract or a combination of both on the life of the participant from any life under- writer duly licensed in the State of Florida, who re- presents an insurance company licensed to contract business in the State of Florida. Any such fixed or variable life insurance policy or annuity contract purchased shall designate the organization as owner and beneficiary. The participant agrees to sign any documents necessary to the issuance of such fixed or variable life insurance policy or annuity contract as required by the insurance company and to submit to any physical or medical examination and furnish other evidence of insurability as required by the insurance company issuing life insurance. In no event shall the premium or deposit for the life insurance policy or annuity contract exceed the amount deferred by the participant nor be less than the minimum amount of the premium or deposit required by the insurance company selected. Section 10. NON -ASSIGNABILITY CLAUSE - Neither the participant, nor any beneficiary or other designee, shall have any right to sell, assign, transfer, encumber, or otherwise convey any right to receive any payments under the plan; nor shall any payments be subject to attachment, garnishment or execution, or be transferable by operation of law in the event of bankruptcy or insolvency, except to the extent otherwise provided by law. Section 11. PROHIBITION AGAINST FUNDING -, Reference to any insurance policy or annuity contract in this plan is merely for illustrative purposes and nothing in this plan shall be construed to give the participant or any beneficiary or other designee any right, title, interest, or claim in or to any specific asset, fund, reserve, accounts, deposits, insurance policy, or annuity contract of any kind owned by the organiza- tion. Such assets, funds, reserve, accounts, deposits, insurance policy, or annuity contract of any kind shall belong to the organization and be subject to the rights of its creditors or assigns, and shall not be held under any trust for the benefit of the participant or any beneficiary or other designee or held in any way as collateral security for the fulfilling of the obligations of the organization under the plan. IN WITNESS WHEREOF, the organization has caused this plan to be signed by its director o rincipal officer, and attested on the &6 0c� day of i C___ _, 19 _ ATTEST: GANIZA I � lirtrY By - D'ry ��-�'�/� Title 7' Fill out and sic:n original and three copies Original and one copy to Finance One copy for personnel file One copy for Employee. JOINDER AGREEMENT TO THE CITY OF TAMARAC, FLORIDA DEFERRED COMPENSATION PLAN To: The City of Tamarac heck appropriate item NEW AGREEMENT (or Account): The undersigned hereby acknowledges receipt of and agrees to the terms and conditions of the CITY OF TAMARAC DEFERRED COMPENSATION PLAN, as amended, and hereby applies for participation in said plan as indicated below. AMENDMENT OF EXISTING AGREEMENT (or change in Account): The undersigned hereby requests that the following amendment be made to the Joinder Agreement which provided for my participation in the CITY OF TAMARAC DEFERRED COMPENSATION PLAN as amended. PERSONAL INFORMATION: Mr. Employee's Mrs. Name Miss Ms. First Mi Residence Street ,Job Title Social Security Number e Last City State M _.._. —F Birth Mo. Day Year 1p __ __..-------------.._..___________..__..___- DEDUCTION AUTHORIZATION AND DESIGNATION OF DEFERRED COMPENSATION: Beginning I wish to participate in the deferred compensation plan to the extent ofper pay period ($ per annum). I request that the total amounts of deferred compensation be applied to the available in- vestment funds in the following percentages: Life Insurance % Variable Fund % Fixed Income Fund % Total 100 % I understand that the designation of deferred compensation may not be changed without a proper amendment to this agreement and that any changes may be made only twice a year at designated periods. DESIGNATION OF BENEFICIARIES: I wish to designate the following beneficiary (or beneficiaries) in accordance with Irovisions of the plan: (show name, relation, and address). (If more than, onr, show share.) I acknowledge receipt of a copy of the deferred comeensation plan and can i reviewed and understand all of the terms and conditions thereof, Signed: Witness Home Address: Dated: ppraved APPENDIX "B"