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6482 I • RESOLUTION NO. 6 ,482 A RESOLUTION APPROVING THE ESTABLISHMENT OF A DEFINED CONTRIBUTION PLAN AS RETIREMENT FOR NON-UNIFORM EMPLOYEES OF THE CITY OF LITTLE ROCK, ARKANSAS, AND FOR OTHER PURPOSES. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS. SECTION 1 . A defined contribution plan also known as a "money purchase" plan for providing a retirement program for non-uniform employees is hereby approved and adopted effective January 1, 1981, by means of a funding agreement with Aetna Life Insurance Company Said pension plan con- tains Sections 1 through 10 and is in form and substance reflected by EXHIBIT "A" attached hereto and made a part hereof the same as though set out herein word for word. SECTION 2 . The Mayor is hereby authorized, acting for and on behalf of the Board of Directors to execute said plan by his signature in the space provided at the end thereof. SECTION 2 . This resolution shall be in full force and effect from and after its adoption. ADOPTED: December 16 , 1980 ATTEST: APPROVED• City C&611 Mayor fir%[1lsMvs "t4," CITY OF LITTLE ROCK, ARKANSAS DEFINED CONTRIBUTION PENSION PLAN EFFECTIVE JANUARY 1, 1981 SECTION 1 - GENERAL The City of Little Rock is ordered to provide a systematic method for providing a pension for non-uniform employees with a constant or fixed City contribution so as to control costs, to allow maximum flexibility to our employees as to the extent of their contributions and as to the date they will retire; and to guarantee to employees who have participated in the defined benefit that their accrued pensions will not be adversely affected, do adopt this "Defined Contribution" or "money purchase" plan effective January 1, 1981 . SECTION 2 - PARTICIPATION AND ELIGIBILITY 2 .1 ELIGIBLE EMPLOYEES All permanent non-uniform employees of the City of Little Rock under the administrative control of the City Manager shall be eligible. The employees of any other agency receiving funds under the statutory authority of the Little Rock Board of Directors may be included upon petition to said Board of Directors. 2.2 WHEN INDIVIDUAL EMPLOYEES ARE ELIGIBLE An employee will become eligible for enrollment the month following the date on which the employee has completed at least one year of continuous service. All employees who are members of the defined benefit plan on December 31, 1980 shall be enrolled in the new plan. 2. 3 MANDATORY PARTICIPATION AND EXCLUSION All eligible employees will be required to enroll in the plan as a condition of employment. The City Manager may approve the non-participation of an employee on the immediate staff of the Board of Directors or the City Manager who is enrolled in an alternative pension plan. SECTION 3 - CONTRIBUTIONS 3 .1 EMPLOYEE CONTRIBUTIONS Each employee participant shall pay 3 . 5% of basic salary toward the pension plan. Such payment shall be deducted from the employee ' s payroll check. 3 . 2 VOLUNTARY EMPLOYEE CONTRIBUTIONS An employee may elect to contribute, in addition to the 3 . 5%, an amount of earning in increments of 0. 5% un to 10% of earnings to the plan. The amount of said voluntary contribu- tions may be changed every six months . However, only two changes may be made, every six months, in a calendar year. An employee may withdraw at any time any or part of voluntary contributions including any investment earnings . However, such voluntary contributions may only be reinstated six months after such withdrawal . 3 . 3 LUMP SUM CONTRIBUTIONS An employee may, in addition to the regular or voluntary contribution made by payroll deductions deposit in a lump sum monies to be held in his/her pension account to be credited with the same interest provisions . Withdrawals and deposits are limited to two each in a calendar year. The amount of lump sum contributions is limited to 10% of salary or 13. 5% including mandatory contributions . 3 .4 EMPLOYER CONTRIBUTIONS The City will contribute 4% of each participating employee ' s salary toward the plan. The City will contribute an amount for the defined benefit plan as determined by actuarial valuation each year to insure that employees enrolled prior to January 1, 1981 receive at retirement a benefit at least equal to the benefits the defined benefit plan would have provided had it remained in effect until retirement date. SECTION 4. - ACCOUNT VALUE AND INVESTMENTS Each employee shall have an individual account established in the employee ' s name. The account will contain a record of all employee contributions , city contributions and net invest- ment earnings. At least once a year a statement will be fur- nished to each employee showing all transactions and the cur- rent value of the account. SECTION 5 - TERMINATION AND VESTING An employee who terminates employment for any reason other than death, permanent disability, or retirement shall have returned all, employee contributions and any net investment earning and a portion of employer contributions if the employee has at least 5 years service as follows: Number of Years Percentage of of Service Employee Contributions Less than 5 0% 5 but less than 6 50% 6 but less than 7 60% 7 but less than 8 70% 8 but less than 9 80% 9 but less than 10 90% 10 or over 100% SECTION 6 - DEATH AND DISABILITY BENEFITS Any employee who dies while a participant in the Plan shall be 100% vested in the employer contributions. Any employee who becomes totally and permanently disabled will be 100% vested in employer contributions. Total and permanent disability shall be determined by a physician of the City' s choice or by a prima facia ruling by the Social Security Administration or the State Worker' s Compensation Commission. SECTION 7 - NON-DISCIPLINARY TERMINATIONS Notwithstanding the vesting provisions of SECTION 5, any employee who is terminated for non-disciplinary rea- sons such as layoffs, job-abolishment or management initiated resignations shall, with the specific approval of the City Manager, be 100% vested in the employer' s contributions. SECTION 8 - RETIREMENT Any employee who is fully vested may "retire" under the distribution options set forth in SECTION 9. However, this plan is designed for normal retirement at age 62 and early retirement at age 55 when social security benefits and accrued benefits under the defined benefit plan are considered. SECTION 9 - DISTRISUTION OPTIONS 9.1 ANNUITY PURCHASE vpun ttt3tC� L t. ui trllflllldtlllll ail employee may have the total monies credited to his/her account used to purchase an annuity of the funding agent. Annuity proceeds will commence on the first of the month followina retirement. 9. 2 ANNUITY OPTIONS Annuities may be purchased under the following options: Life Annuity - payments continue as long as retiree lives . Joint-Annuity - Payments continue for life with 50%, 75% or 100% continuing after death of retiree for the remaining life of the person named as joint annuitant. Annuity for Period Certain - Payments guaranteed for a period of 5, 10 or 15 years to retiree or surviving beneficiary. Social Security Coupling - Payments arranged so that aggregate annual received from annuity and social security will be approximately the same. 9. 3 LUMP-SUM PAYMENT An employee may elect to 'receive the total accumulated balance in a single cash payment at retirement. SECTION 10 - FUNDING AND ADMINISTRATION The City may contract with a reputable company for pur- poses of investing the funds deposited under the plan, for providing annuities for retirees, for advising on matters relating to the plan and for providing a group annuity con- tract. The Personnel Director and the Finance Director shall act as trustees for the administration of the various non- ' uniform retirement plans.