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9987RESOLUTION NO. 9,987 • 1 2 3 A RESOLUTION TO CLARIFY ESTABLISHING THE PARTICIPATION OF THE 4 CITY ATTORNEY AND OTHER CITY EMPLOYEES IN A MONEY PURCHASE 5 RETIREMENT PLAN ADMINISTERED BY THE ICMA RETIREMENT 6 CORPORATION. 7 a WHEREAS, the City of Little Rock ( "Employer ") has employees rendering 9 10 valuable services; and 11 WHEREAS, the establishment of a money purchase retirement plan benefits 12 employees by providing funds for retirement and funds for their beneficiaries in the 13 14 event of death; and 15 WHEREAS, the City desires that its money purchase retirement plan be 16 administered by the ICMA Retirement Corporation and that the funds held on behalf 17 of the City Attorney and other employees in such plan and be invested in the ICMA 18 19 Retirement Trust, a trust established by public employers for the collective investment 20 of funds held under their retirement and deferred compensation plans: 21 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF 22 23 THE CITY OF LITTLE ROCK, ARKANSAS: 24 SECTION 1. The City of Little Rock (the "City ") hereby establishes or has 25 26 established a money purchase retirement plan (the "Plan ") in the form of: 27 The ICMA Retirement Corporation Prototype Money 8 Purchase Plan and Trust, pursuant to the specific provisions 29 of the Adoption Agreement (executed copy attached 30 hereto). 31 The Plan shall be maintained for the exclusive benefit of eligible employees and their 32 33 beneficiaries; and 34 SECTION 2. The City hereby executes the Declaration of Trust of the ICMA 35 Retirement Trust, intending this execution to be operative with respect to any retirement 36 or deferred compensation plan subsequently established by the City, if the assets of the plan are to be invested in the ICMA Retirement Trust. 230 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 SECTION 3. The City hereby agrees to serve as trustee under the Plan and to invest funds held under the Plan in the ICMA Retirement Trust; and SECTION 4. The Finance Director shall be the coordinator for the Plan; shall receive necessary reports, notices, etc. from the ICMA Retirement Corporation or the ICMA Retirement Trust; shall cast, on behalf of the City, any required votes under the ICMA Retirement Trust; may delegate any administrative duties relating to the Plan to appropriate departments; and SECTION 5. The City Manager or his designee is hereby authorized to execute all necessary agreements with the ICMA Retirement Corporation incidental to the administration of the Plan. SECTION 6. Resolution No. 9,951 (April 1, 1997) is hereby repealed to the extent of any inconsistencies. ADOPTED: May 6, 1997 ATTEST: CITY CLERK APPROVED AS TO FORM: THUMAS M. f7 C17W'14,-WORNEY APPROVED: 1 231 ICMA RETIREMENT CORPORATION PROTOTYPE MONEY PURCHASE PLAN &TRUST ADOPTION AGREEMENT #001 232 Account Number The Employer hereby establishes a Money Purchase Plan and Trust to be known as City of Little Rock, Arkansas (the "Plan ") in the form of the ICMA Retirement Corporation Prototype Money Purchase Plan and Trust. This Plan is an amendment and restatement of an existing defined contribution money purchase plan. ❑ Yes If yes, please specify the name of the defined contribution money purchase plan which this Plan hereby amends and restates: I. Employer: City of Little Rock, Arkansas R. Prototype Sponsor: Name: ICMA Retirement Corporation Address: 777 N. Capitol Street, N.E. Washington, D.C. 20002 -4240 Telephone Number: (202) 962.4600 III. The Effective Date of the Plan shall be the first day of the Plan Year during which the Employer adopts the Plan, unless an alternate Effective Date is hereby specified: January 1, 1997 IV Plan Year will mean: ❑ The twelve (12) consecutive month period which coincides with the limita- tion year. (See Section 6.05(i) of the Plan.) FA The twelve (12) consecutive month period commencing on Jan. t and each anniversary thereof. MPP Adoption Agreement 12/23/94 001 -94 V. Normal Retirement Age shall be age 55 (not to exceed age 65). VI. ELIGIBILITY REQUIREMENTS: The following group or groups of Employees are eligible to participate in the Plan: x All Employees All Full -Time Employees Salaried Employees Non -union Employees Management Employees Public Safety Employees General Employees Other (specify below) The group specified must correspond to a group of the same designation that is defined in the statutes, ordinances, rules, regulations, personal manuals or other material in effect in the state or locality of the Employer. 2. The Employer hereby waives or reduces the requirement of a twelve (12) month Period of Service for participation. The required Period of Service shall be N/A (write N/A if an Employee is eligible to participate upon employment). If this waiver or reduction is elected, it shall apply to all Employees within the Covered Employment Classification. 3. A minimum age requirement is hereby specified for eligibility to participate. The minimum age requirement is N/A (not to exceed age 21. Write N/A if no minimum age is declared.) VII. CONTRIBUTION PROVISIONS The Employer shall contribute as follows (choose one, if applicable): ❑ Fixed Employer Contributions With Or Without Mandatory Participant Contributions. The Employer shall contribute on behalf of each Participant % of Earnings or $-WA for the Plan Year (subject to the limitations of Article VI of the Plan). Each Participant is required to contribute_ % of Earnings or $_for the Plan Year as a condition of participation in the Plan. (Write "0" if no contribution is required.) If Participant Contributions are required under this option, a Participant shall not have the right to discontinue or vary the rate of such contributions after becoming a Plan Participant. © MPP Adoption Agreement 12/23/94 001 -94 233 The Employer hereby elects to "pick up" the Mandatory/Required Participant Contribution. U Yes ❑ No [Note to Employer: Neither an opinion letter issued by the Internal 234 Revenue Service with respect to the Prototype Plan, nor a determination letter issued to an adopting Employer is a ruling by the Internal Revenue Service that Participant contributions that are picked up by the Employer are not includable in the Participant's gross income for federal income tax pur- poses. The Employer may seek such a ruling. Picked up contributions are excludable from the Participant's gross income under section 414(h)(2) of the Internal Revenue Code of 1986 only if they meet the requirements of Rev. Rut. 81 -35, 1981 -1 C.B. 255. Those requirements are (1) that the Employer must specify that the contributions, although designated as employee contributions, are being paid by the Em. ployer in lieu of contributions by the employee; and (2) the employee must not have the option of receiving the contributed amounts directly instead of having them paid by the Employer to the plan.] N/A ❑ Fixed Employer Match of Participant Contributions. The Employer shall contribute on behalf of each Participant �A% of Earn- ings for the Plan Year (subject to the limitations of Articles V and VI of the Plan) for each Plan Year that such Participant has contributed _% of Earnings or $ . Under this option, there is a single, fixed rate of Em- ployer contributions, but a Participant may decline to make the required Participant contributions in any Plan Year, in which case no Employer contri- bution will be made on the Participant's behalf in that Plan Year. N/A ❑ Variable Employer Match Of Participant Contributions. The Employer shall contribute on behalf of each Participant an amount de- termined as follows (subject to the limitations of Articles V and VI of the Plan): % of the Participant contributions made by the Participant for the Plan Year (not including Participant contributions exceeding _% of Earnings or $ ); PLUS % of the contributions made by the Participant for the Plan Year in excess of those included in the above paragraph (but not includ- ing Participant contributions exceeding in the aggregate _% of Earnings or $ ). Employer Contributions on behalf of a Participant for a Plan Year shall not exceed $ or _% of Earnings, whichever is ❑ more or ❑ less. MPP Adoption Agreement 12/23/94 001 -94 2. Each Participant may make voluntary (unmatched), after -tax contribution, subject to the limitations of Section 4.05 and Articles V and VI of the Plan. ❑ Yes ID No 3. Employer contributions and Participant contributions shall be contributed to the Trust in accordance with the following payment schedule: 235 VIII. EARNINGS Earnings, as defined under Section 2.09 of the Plan, shall include: (a) Overtime (b) Bonuses ❑ Yes '❑ No @ Yes ❑ No IX. LIMITATION ON ALLOCATIONS If the Employer (i) maintains or ever maintained another qualified plan in which any Par- ticipant in this Plan is (or was) a participant or could possibly become a participant, and /or (ii) maintains a welfare benefit fund (as defined in section 419(e) of the Code) or an indi- vidual medical account (as defined in section 415(1)(2) of the Code, under which amounts are treated as Annual Additions with respect to any Participant in this Plan) the Employer hereby agrees to limit contributions to all such plans as provided herein, if necessary in order to avoid excess contributions (as described in Sections 6.03 and 6.04 of the Plan). N/A 1. If the Participant is covered under another qualified defined contribution plan maintained by the Employer, other than a Regional Prototype Plan, the provisions of Section 6.02(a) through (f) of the Plan will apply as if the other plan were a Master Prototype Plan, unless another method has been indicated below. ❑ Other Method. (Provide the method under which the plans will limit total Annual Additions to the Maximum Permissible Amount, and will properly reduce any excess amounts, in a manner that precludes Employer discretion.) MPP Adoption Agreement 12/23/94 001 -94 r= M M� M M W M M M M M r M 0 N/A 2. If the Participant is or has ever been a participant in a defined benefit plan main- tained by the Employer, and if the limitation in Section 6.04 of the Plan would be exceeded, then the Participant's Projected Annual Benefit under the defined benefit plan shall be reduced in accordance with the terms thereof to the extent necessary to satisfy such limitation. If such plan does not provide for such reduction, or if the limitation is still exceeded after the reduction, annual additions shall be reduced to the extent necessary in the manner described in Sections 6.01 through 6.03. The methods of avoiding the limitation described in this paragraph will not apply if the Employer indicates another method below. ❑ Other Method. (Note to Employer: Provide below language which will satisfy the 1.0 limitation of section 415(e) of the Code. Such language must preclude Employer discretion. See section 1.415.1 of the Regulations for guidance.) N/A 3. The limitation year is the following 12- consecutive month period: N/A X. VESTING PROVISIONS The Employer hereby specifies the following vesting schedule, subject to (1) the minimum vesting requirements as noted and (2) the concurrence of the Plan Administrator. Years of Specified Minimum Service Percent Vesting Completed Vestine Requirements" Zero 100 % No minimum One % No minimum Two % No minimum Three % Not less than 20% Four % Not less than 40% Five % Not less than 60% Six % Not less than 80% Seven, or more 100 % Must equal 100% ( "These minimum vesting requirements conform to the Code's three to seven year vesting schedule. If the employee becomes 100% vested by the completion of five years of service, there is no minimum for years three and four.) XI. Loans are permitted under the Plan, as provided in Article XIV: ❑ Yes ❑ No MPP Adoption Agreement 12/23/94 001 -94 236 XII. The Employer hereby attests that it is a unit of state or local government or an agency or instrumentality of one or more units of state or local government. XIII. The Prototype Sponsor hereby agrees to inform the Employer of any amendments to the Plan made pursuant to Section 15.05 of the Plan or of the discontinuance or abandonment of the Plan. XIV The Employer hereby appoints the Prototype Sponsor as the Plan Administrator pursuant to the terms and conditions of the ICMA RETIREMENT CORPORATION PROTOTYPE MONEY PURCHASE PLAN & TRUST. The Employer hereby agrees to the provisions of the Plan and Trust. XV The Employer hereby acknowledges it understands that failure to properly fill out this Adoption Agreement may result in disqualification of the Plan. XVI. An adopting Employer may not rely on a notification letter issued by the National or District Office of the Internal Revenue Service as evidence that the Plan is qualified under section 401 of the Internal Revenue Code. In order to obtain reliance with respect to plan qualification, the Employer must apply to the appropriate key district office for a determination letter. This Adoption Agreement may be used only in conjunction with basic Plan document number 001. In Witness Whereof, the Employer hereby causes this Agreement to be executed on this 6th day of May ,19 97. EMPLOYER By: Charles Nickerson Title: City Manager Attest: U Accepted: ICMA RETIREMENT CORPORATION 0 Tide: Corporate Secretary Attest: MPP Adoption Agreement 12/23(94 001 -94 237