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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 1 1 1 2 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. 1 1 1-1 3 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 r•-r • r• ,;� �IT IL DIST is DIST M DIST & DIST 4: 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)