HomeMy WebLinkAboutCity of Tamarac Resolution R-99-3051
Temp. Reso. #8803
October 14, 1999
Revision #1, November 3, 1999
Revision #2, November 4, 1999
CITY OF TAMARAC, FLORIDA
RESOLUTION NO. R-99--30-S-
A RESOLUTION OF THE CITY COMMISSION OF
THE CITY OF TAMARAC, FLORIDA, AUTHORIZING
THE APPROPRIATE OFFICIALS TO EXECUTE AN
AGREEMENT WITH THE U.S. CONFERENCE OF
MAYORS TO OFFER THE PEBSCO/NATIONWIDE
RETIREMENT SOLUTIONS DEFERRED
COMPENSTION PROGRAM FOR CITY EMPLOYEES;
PROVIDING FOR CONFLICTS; PROVIDING FOR
SEVERABILITY; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, the City of Tamarac has employees rendering valuable services;
and
WHEREAS, the establishment of an additional deferred compensation plan for
such employees will serve the interests of the City of Tamarac by enabling it to provide
reasonable retirement benefits to its employees, and by assisting in the attraction and
retention of competent personnel; and
WHEREAS,
the U.S.
Conference
of Mayors
has
designated
PEBSCO/Nationwide
Retirement
Solutions as
administrator
of
its Deferred
Compensation Program for cities; and
WHEREAS, the City of Tamarac has determined that the establishment of an
additional Deferred Compensation Program to be administered by PEBSCO/Nationwide
Retirement Solutions would be beneficial to City of Tamarac Employees; and
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Temp. Reso. #8803
October 14, 1999
Revision #1, November 3, 1999
Revision #2, November 4, 1999
WHEREAS, the City of Tamarac understands that the investment of funds held
under the Deferred Compensation Program administered by PEBSCO/Nationwide
Retirement Solutions, will be held by PEBSCO Retirement Trust, a trust established by
public employers for the purpose of representing the interests of such employers, with
respect to the collective investment of funds held under their deferred compensation
plans; and
WHEREAS, the Risk Manager recommends approval of the additional Deferred
Compensation Program; and
WHEREAS, the City Commission of the City of Tamarac deems it to be in the
best interest of the citizens and residents of the City of Tamarac to offer employees an
additional Deferred Compensation Program.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISION OF THE CITY OF
TAMARAC, FLORIDA:
SECTION 1: The foregoing "WHEREAS" clauses are hereby ratified and
confirmed as being true and correct and are hereby made a specific part of this
Resolution.
SECTION 2: That the appropriate City officials are hereby authorized to
execute an agreement, attached hereto as Exhibit A, with the U.S. Conference of
Mayors to offer the PEBSCO/Nationwide Retirement Solutions Deferred Compensation
Plan for City Employees.
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Temp. Reso. #8803
October 14, 1999
Revision #1, November 3, 1999
Revision #2, November 4, 1999
SECTION 3: That the Director of Finance will be responsible for
administering the agreement between the City of Tamarac and the U.S. Conference of
Mayors for the PEBSCO/Nationwide Retirement Solutions for the Deferred
Compensation Program.
SECTION 4: All resolutions or parts of resolutions in conflict herewith are
hereby repealed to the extent of such conflict.
SECTION 5: If any clause, section, other part or application of this
Resolution is held by any court of competent jurisdiction to be unconstitutional or
invalid, in part or application, it shall not affect the validity of the remaining portions.
SECTION 6: This Resolution shall become effective immediately upon its
passage.
PASSED, ADOPTED AND APPROVED THIS /0 day of , 1999.
ATTE T:
(�
CAROL GOLD, C C/AAE
CITY CLERK
I HEREBY CERTIFY that I
7a ved this RESOLUTI
s t ibrm. /-
MITCMLL S. KRj
CITY ATTORNEY
)2�CHREIEBER,
MAYOFT
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EXHIBIT A
UNITED STATES CONFERENCE OF MAYORS
DEFERRED COMPENSATION PROGRAM
CITY ADMINISTRATIVE AGREEMENT
I*M P 90% -Ji-'Zo 3
This agreement is executed by and between the United States Conference of Mayors (USCM)
of Washington, D.C., and the City of !!p %A 0-4,c-(City).
RECITALS
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 Cities 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 way to help employees help themselves by
providing an attractive incentive to build a voluntary fund for their supplemental retirement
income requirements.
The Program will be provided at no cost t4 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, including the Internal
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 administrative 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 review 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 member cities.
This Bid selection process was performed by USCM in order to comply as closely as possible
with governmental purchasing procedures.
IV. PROGRAM ADMINISTRATOR:
USCM has agreed to sponsor the Program and has selected and contracted with an
independent plan administrator eminently qualified to accept and fulfill the responsibility
for all administrative requirements necessary for the successful operation of the Program.
DC-639-A (7i87)
V. CITY CONSIDERATION:
City recognizes that 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 that through 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 recognizes 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
leverage of USCM and Cities through a'comprehensive bid selection analysis.
City recognizes the benefits of USCM's establishment of a functional administrative system
on behalf of Cities to administer 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:
A. Provide City with a Deferred Compensation Plan Agreement and necessary agreements
0for execution with its participating employees which is and will be maintained in
compliance with the provisions of the Internal Revenue Code.
B.
Establish the overall 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 is necessary to implement the Program
in accordance with the needs and objectives of the City's individual requirements.
D.
Warrant that it has conducted, on behalf of Cities, a comprehensive bid selection process
designed to provide the most competitive combination of costs, benefits, and services
for Cities and their employees.
E.
Review annually the administrative, operational and financial performance of such
selected companies and take such actions as are necessary to assure the City and its
employees the best possible continuity of costs, benefits and services.
F.
Provide a comprehensive administrative service system to facilitate employee deferrals,
reconciliations, disbursements to the investment media, maintenance of the individual
and City account records, provide periodic statements and coordinate employee
distributions, and assure proper tax reporting systems.
G.
Provide 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
.
necessary to meet the Citv's individual financial reporting requirements;
H.
Provide for an initial and continuous employee educational program to make certain
all interested City employees receive a thorough understanding of the overall Program,
its advantages and restrictive provisions of the Program.
DC-009-A 17;971
1. Frovtde sucn employee communication materials and other forms. dr,cuments and
agreements as are necessary to administer the Program.
,;. Provide the City and its employees such convenience and timeliness of individual
services as are required for effective employee understanding of participation.
0 VII. CITY RESPONSIBILITIES:
NOW, THEREFORE, it is agreed that the City shall:
A. Provide USCM its full cooperation and support ir adminiswring 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 USCM's Program to conduct orientation meetings with
City employees.
D. Name a City official or committee to act as Contract Administrator on behalf of the
City on all material matters relating to activities of the Program.
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 service specifications.
It is mutually understood and agreed that USCM has designated Public Employees Benefit
Services Corporation (PEBSCO) to act as its Agent in fulfilling certain of the administrative
• and marketing 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 USCM and PEBSCO specifically stating
the nature of USCM or PEBSCO's failure to perform. If the specified default is not corrected
within ninety (90) days following the notice of default by the City, the City may terminate
this Agreement.
This Agreement is effective until written notice of termination is provided by either party.
CITY
Date
UNITED STATES CONFERENCE OF MAYORS
Executive Director
Date
DC-639-A (7187)