HomeMy WebLinkAboutResolution No. 14-7526RESOLUTION NO. 14-7526
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY AMENDING
AND RESTATING THE CITY OF DOWNEY PUBLIC AGENCY RETIREMENT
SERVICES (PARS) ALTERNATE RETIREMENT SYSTEM PLAN
WHEREAS, the City of Downey implemented an alternate retirement system plan in
compliance with the Omnibus Budget Reconciliation Act of 1990 (OBRA 1990) in January 1992
for employees who are not eligible for the California Public Employees' Retirement System;
and,
WHEREAS, the City of Downey approved and adopted Resolution No. 07-7031
implementing an alternate retirement system plan with Public Agency Retirement Services
(PARS) effective January 1, 2008 for temporary part-time employees and that from time to
time, the plan document has been amended and restated for updates with current legislation, -
and,
WHEREAS, it is determined that in accordance with the Internal Revenue Service (IRS)
regulations, appropriate enrollment of a council member in Social Security or an alternate plan
is required; and,
WHEREAS, the City of Downey does not contract with Social Security and the alternate
retirement plan option available is the PARS Plan; and,
WHEREAS, a City council member does not meet the common law definition of
"employee" and that enrollment in the PARS Plan is required in accordance with IRS
regulations; and,
WHEREAS, th City of Downey alternate retirement system plan (PARS Plan) is hereby
amended and restateJ to include eligibility for enrollment of a City council member as required
by IRS regulations in accordance with the City's issuance of Form W-2 for the payment of
reimbursed expendit res; and,
WHEREAS, th City Council in accordance with Resolution No. 07-7031 desires to
authorize the City Ma ager to direct the Finance Director (appointed Plan Administrator) to take
all steps relative to the implementation of the PARS Plan, including execution and any
revisions to the Plan document on behalf of the City, along with any future amendments to the
Plan document for the administration of the OBRA 1990.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City of Downey PARS Plan document is hereby amended and
restated and incorporated as Exhibit A, attached hereto, and by this reference, is hereby
adopted.
RESOLUTION NO. 14-7526
PAGE 2
SECTION 2. This Resolution incorporates previously adopted Resolution No. 07-
7031 to establish the City of Downey PARS Plan.
APPROVED AND ADOPTED this 25 day of November,
o _
FE
ATTEST:
ARIA M. JIMENE-4, CMC
City Clerk
I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of the
City of Downey at a regular meeting held on the 25th day of November, 2014, by the following vote,
to wit:
AYES: Councill Members: Guerra, Saab, Marquez, Vasquez
NOES: Council Member: None.
ABSENT: Council Member: Brossmer.
ABSTAIN: Council Member: None.
ADRIA M. JIMENEZ, CMC
City Clerk
THE CITY OF DOWNEY
PUBLIC AGENCY RETIREMENT SYSTEM
ALTERNATE RETIREMENT SYSTEM
(PARS-ARS)
AMENDED AND RESTATED
EFFECTIVE JANUARY 1, 2008
TABLE OF CONTENTS
Page
INTRODUCTION............................................................................................................................ 2
DEFINITIONS.................................................................................................................................
3
ELIGIBILITY
REQUIREMENTS FOR PARTICIPATION..........................................................
7
2.1
Time of Participation............................................................................................................
7
2.2
Termination of Participation................................................................................................
7
2.3
Effect of Transfer to Ineligible Employment.......................................................................
7
2.4
In Service Distributions........................................................................................................
7
CONTRIBUTIONS..........................................................................................................................
8
3.1
Amount of Employer Contributions.....................................................................................
8
3.2
Amount of Employee Contributions....................................................................................
8
3.3
Administrative Expenses......................................................................................................
8
3.4
Allocation of Administrative Expenses...............................................................................
9
3.5
Limits on Annual Additions.................................................................................................
9
3.6
Vesting.................................................................................................................................
9
3.7
Investment in Accordance With Act....................................................................................
9
3.8
Reversions............................................................................................................................
9
FUNDING AND VALUATION....................................................................................................
10
4.1
Funding..............................................................................................................................
10
4.2
Valuation............................................................................................................................10
4.3
Type and Nature of Plan and Trust....................................................................................
10
VESTING......................................................................................................................................
10
5.1
Vesting in Employer Contribution Account......................................................................
11
5.2
Vesting in Employee Contribution Account......................................................................
11
5.3
Full or Partial Termination.................................................................................................
11
DISTRIBUTION
OF BENEFITS..................................................................................................
12
6.1
Incidental Death Benefits...................................................................................................
12
6.2
Amount of Distribution ......................................................................................................
12
6.3
Lump Sum Distributions....................................................................................................
12
6.4
Time of Distribution...........................................................................................................
13
6.5
Participant's Rights Not Subject To Execution..................................................................
13
OMM_US:4790870.4 _i_
TABLE OF CONTENTS
(continued)
6.6 Unclaimed Benefits.........................................................
6.7 Direct Rollovers ..............................................................
6.8 Military Service...............................................................
DEATHBENEFITS.....................................................................
7.1 Designation of Beneficiary .............................................
7.2 Married Participant..........................................................
7.3 Spouse's Signature...........................................................
7.4 Default Beneficiary.........................................................
7.5 Domestic Partners
Page
............................................... 13
............................................... 13
............................................... 15
............................................... 16
............................................... 16
............................................... 16
............................................... 16
............................................... 16
.............................................................................................................. 16
ADMINISTRATION AND AMENDMENT OF PLAN............................................................... 18
8.1 Designation of Plan Administrator..................................................................................... 18
8.2 Rules and Regulations........................................................................................................ 18
8.3 Amendment and Termination............................................................................................ 18
ANNUALADDITION LIMITS.................................................................................................... 19
9.1 Construction.......................................................................................................................19
9.2 Definitions....'......................................................................................................................19
9.3 Annual Addition Limitations............................................................................................. 20
OMM_US:4790870.4 -11-
The City
profit sharing p
complete amenc
System Plan.
It is inte
shall be qualifie
Revenue Code c
that this Plan
governmental pl
under California
("Act"). At any i
their Beneficiari,
used for, or div
Beneficiaries, as
It is inter
Uruguay Round
Act of 1997 and
(commonly refer
Plan reflecting tl
the legislation re:
It is furl
provisions of th,
related requirem(
as "EGTRRA")
made effective a,,
It is furl
provisions of leg
Act of 2006 (cor
Relief Tax Act o
of this restated
HEART Act) are
in this sentence.
NB1:790870.2
INTRODUCTION
of Downey (the "Employer") has adopted this tax qualified governmental
an for the benefit of its Eligible Employees. This document is a full and
ment and restatement of the City of Downey PARS Alternate Retirement
ided that this Plan and the Trust established to hold the assets of the Plan
1 under Section 401(a) and tax-exempt under Section 501(a) of the Internal
f 1986, together with any amendments thereto ("Code"). It is also intended
and the Trust established hereunder shall meet the requirements of a
m under Section 414(d) of the Internal Revenue Code and of a pension trust
Government Code Sections 53215 - 53224, or their successor Sections
ime prior to the satisfaction of all liabilities with respect to Participants and
:s under the Trust created pursuant to this Plan, the Trust assets shall not be
:rted to, purposes other than the exclusive benefit of Participants or their
prescribed in Section 401(a)(2) of the Code.
Jed that the Plan satisfy the requirements of the applicable provisions of the
kgreements Act, the Small Business Job Protection Act, the Taxpayer Relief
the Uniformed Service Employment and Reemployment Rights Act of 1994
-ed to as the "GUST" amendments) and that the provisions of this restated
e GUST amendments are hereby made effective as of the dates required by
erred to in this sentence.
her intended that the Plan satisfy the requirements of the applicable
Economic Growth and Tax Relief Reconciliation Act of 2001 and the
nts of the revisions to Section 401(a)(9) of the Code (commonly referred to
nd that the provisions of this restated Plan reflecting EGTRRA are hereby
of the dates required by the legislation referred to in this sentence.
her intended that the Plan satisfy the requirements of the applicable
islation enacted subsequent to EGTRRA, including the Pension Protection
imonly referred to as the "PPA") and the Heroes Earnings Assistance and
2008 (commonly referred to as the "HEART Act") and that the provisions
Plan reflecting such subsequent legislation (including the PPA and the
hereby made effective as of the dates required by the legislation referred to
2
ARTICLE I
DEFINITIONS
t" means, with respect to each Participant, the value of all accounts
d on behalf of the Participant.
1.2 "Act" mans California Government Code Sections 53215 - 53224.
1.3 "Aggregate Account" means, with respect to each Participant, the value of all
accounts maintained on behalf of the Participant, whether attributable to Employer or
Employee contributions.
1.4 "Amend d Effective Date" means January 1, 2008.
1.5 "Beneficiary" means the person, trust or other entity to whom a share of a
deceasedParticipant's Aggregate Account is payable.
1.6 "Code" means the Internal Revenue Code of 1986 as amended from time to time.
1.7 "Compensation" means all compensation for that portion of the Plan Year during
which the Employee was a Participant, paid in cash by the Employer to the
Participant for personal services. Further, the Employer as defined in Section 1.13
hereof, defines compensation as "Gross Wages" defined as all remuneration to a
Participant by the Employer that is reportable on Form W-2, together with any
amounts contributed to an individual annuity contract under Section 403(b) of the
Code or deferred under an eligible deferred compensation plan under Section 457 of
the Code or contributed to a cafeteria plan under Section 125 of the Code or paid as a
qualified transportation fringe under Section 132(f)(4) of the Code.) The annual
compensa ion of each Participant, as defined above by the Employer, taken into
account ir determining allocations for any Plan Year beginning after December 31,
2001 shall not exceed $200,000, as adjusted for cost -of -living increases in accordance
with Secti n 401(a)(17)(B) of the Code. For any short Plan Year, the Compensation
limit shall be an amount equal to the Compensation limit for the calendar year in
which the Plan Year begins multiplied by a ratio obtained by dividing the number of
full months in the short Plan Year by twelve (12). The limitation on the maximum
amount o Compensation that may be taken into account under the Plan shall not
apply to any Participant eligible for a higher limit on annual compensation under the
transition rule described in Section 1.401(a)(17)-1(d)(4)(ii) of the Treasury
Regulations.
1.8 "Council members" means those elected Council members who are not active City
of Downey PERS members.
3
NB 1:790870.2
1.9 "Effective Date" means January 1, 1992.
1.10 "Eligible Class of Employees" means the eligible class of employees as provided
herein a d in the applicable governing board policies and regulations promulgated
thereunder by the Employer.
1.11 "Eligible Employee" means all of those Employees of the Employer whose
Participation in this Plan are not prohibited or restricted by the provisions of a
collectiv bargaining agreement or another plan or retirement system maintained by
the Employer. Employees who are exempt from coverage under Social
Security by federal law or regulation shall not be Eligible Employees.
1.12 "Emplo cell means an employee of the Employer.
1.13 "Employee Contribution Account" means the account by that name established
pursuant to Section 3.2 hereof.
1.14 "Emplo�er" means the City of Downey that has adopted this Plan.
1.15 "Employer Contribution Account" means the account by that name established
pursuant to Section 3.1 hereof.
1.16 "Inactive Participant" means a Participant who is no longer eligible to participate
because he is no longer in a class of Employees eligible to participate in this Plan but
is still e ployed by the Employer.
1.17 "Ineligible Employee" means all of those Employees of the Employer whose
participation in this Plan is prohibited or restricted by the provisions of a collective
bargainin agreement, another plan or retirement system maintained by the Employer,
or exempt from coverage under Social Security by federal law or regulation.
1.18 "Investment Manager" means the entity appointed by the Employer as the
investment manager under the Plan.
1.19 "Limitation Year" means the limitation year under Section 3.5 hereof and shall
mean the Ian Year.
1.20 "Normal Retirement Age" means sixty-five (65) years of age.
1.21 "Normal Retirement Date" means the first day of the month coincident with or next
following the date on which the Participant attains Normal Retirement Age.
1.22 "Participant" means a Participant under Article II hereof.
1.23 "Partici
pursuant
NB 1:790870.2
ant Aggregate Accounts" means the accounts by that name established
Article III hereof
11
1.24 "Participant Contributions" means contributions made on behalf of the Participant
by the E ployer as Pick Up Contributions.
1.25 "Partici ant Contribution Account" means the value of the Participant's interest in
this Plan that is attributable to Pick Up Contributions and/or Participant after tax
1.26 "PERS" means the California Public Employees' Retirement System.
1.27 "Pick Up Contributions" means Participant contributions made by the Employer on
behalf of the Participant pursuant to Section 414(h) of the Internal
Revenue Code. Pick Up Contributions shall not under any circumstances be paid to
the Participant or be directed by the Participant for any purpose except as Pick Up
Contributions to this Plan. The Employer may make Pick Up Contributions through a
reduction in salary, an offset against future salary increases, or a combination of the
two.
1.28 "Plan" ni�ans the City of Downey PARS Alternate Retirement System.
1.29 "Plan Administrator" means the individual or position designated by the Employer
to act on behalf of the Employer in matters relating to this Plan. If no designation is
made, the Employer shall be the Plan Administrator. If a Plan Administrator has been
appointed, the word "Employer" as used in this Plan shall mean Plan Administrator
unless the context indicates a different meaning is intended.
1.30 "Plan Year" means the consecutive twelve month period beginning on January 1 and
ending on December 31.
1.31 "PublicAgency" means an employer authorized under California Government Code
Article 1.5, Sections 53215 through 53224 to establish a pension trust.
1.32 "Regulations" means the regulations adopted or proposed by the Department of
Treasury from time to time pursuant to the Code.
1.33 "Retirem nt System" means any plan that meets the requirements for a
retirement system under Section 3121(b)(7)(F) of the Code and the final
reaulations thereunder.
1.34 "Social
United
1.35 "STRS"
1.36 "Trust"
hold the
1.37 "Trustee"
NB I :790870.2
urity" means the Social Security program as set forth in Title 42 of the
s Code, Section 301 et seq.
the California State Teachers' Retirement System.
s the trust established as part of the Public Agency Retirement Trust to
of the Plan.
means the trustee of the Trust.
5
1.38 "Valuation Date" means the last day of the Plan Year or such other day on which
the asses of the Trust are valued and the value of each Participant's Aggregate
Account is determined.
1.39 "Vested" means the nonforfeitable portion of any Account maintained on behalf of a
0
NB1:790870.2
ARTICLE II
1GIBILITY REQUIREMENTS FOR PARTICIPATION
2.1 Time of
An Eligible Em loyee shall participate in this Plan on each day during which the Employee
is not accruing 4 benefit under Social Security or another Retirement System provided and
maintained by the Employer.
2.2 Termination of Participation
A Participant sh ll cease to be a Participant on the date on which the Participant begins to
participate in another Retirement System or the date of his or her termination of employment
as determined by the Employer.
2.3 Effect of Transfer to Ineligible Employment
If a Participant is no longer an Eligible Employee and becomes an Ineligible Employee, such
Employee will participate immediately upon returning to the Eligible Class of Employees.
Such participation shall commence as of the first day of such eligible employment.
2.4 In Service Distributions
A Participant
Eligible Emp
become an Ii
which his inte
NB1:790870.2
:) is no longer eligible to participate because he is no longer in the class of
-es, but who has not terminated employment with the Employer, shall
ive Participant and shall remain such for twenty-four (24) months after
in the Plan will be distributed to him.
7
ARTICLE III
CONTRIBUTIONS
3.1 Amount of Employer Contributions
There is hereby created and established and shall be maintained by the Plan Administrator
the Employer Contribution Account. For each day that an Employee remains a Participant
under this Plan, he Employer shall make contributions pursuant to one of the following tiers:
Tier I
The Employer shall make a contribution of two and one-half percent (2.5%) of
Compensation f r all Participants with the exception of elected Council members.
Tier II
Effective Janua 1, 2014, for all Participants classified by the Employer as elected Council
members, the E ployer shall make a contribution of zero percent (0%) of Compensation.
Such contributions for Tier I and Tier II shall be made no later than the close of the Plan
Year. This amount shall be credited to the Employer Contribution Account. Employer
Contributions will be allocated to each Participant in the ratio that such Participant's
compensation bears to the compensation of all Participants.
3.2 Amount of Employee Contributions
There is hereby reated and established and shall be maintained by the Plan Administrator
the Employee Contribution Account. For each day that an Employee remains a Participant
under this Plan, the Employee shall make a contribution pursuant to one of the following
tiers:
Tier I
The Employee s all make a contribution of five percent (5%) of Compensation for all
Participants with he exception of elected Council members.
Tier II
Effective January 1, 2014, elected Council members shall make a contribution of seven and
one-half percent 7.5%) of Compensation.
Such contributio s for Tier I and Tier II shall be credited to the Employee Contribution
Account. In accordance with Section 414(h) of the Code and Sections 1.24 and 1.27 of this
Plan, the contribu .ions required under this Section 3.2 shall be Pick Up Contributions.
3.3 Ad
In accordance wi
Trust sufficient t(
such expenses dir
NB ] :790870.2
Expenses
i Section 53217 of the Act the Employer may make contributions to the
defray all or part of the expenses of administering the Plan or may pay
3.4
n of Administrative Expenses
If the Employer chooses not to pay the expenses of administering this Plan, such expenses
shall be charged atably against the Participants' Aggregate Accounts.
3.5 Limits on Annual Additions
Annual additions credited to a Participant's Account during a limitation year shall not exceed
the lesser of $40 000 (adjusted as permitted by Section 415(d) of the Code and Regulations
issued thereunder) or 100 percent of Section 415 Compensation (provided that such 100
percent limitation shall not apply to any contributions for medical benefits after separation
from service, wit in the meaning of Section 401(h) or Section 419A(f)(2) of the Code). This
Section 3.5 shall be construed and interpreted in accordance with the provisions of Article
IX.
3.6 Vesting
A Participant wil be fully Vested in his Aggregate Account at all times. If the Plan's vesting
schedule is amended or the Plan is amended in any way that directly or indirectly affects the
computation of a Participant's nonforfeitable percentage, or if the Plan is deemed amended
by an automatic change to or from a top-heavy vesting schedule, each Participant with at
least three years f service with the Employer may elect within a reasonable period of time
after the adoption of the amendment or change to have his nonforfeitable percentage
computed under the Plan without regard to the amendment or change.
3.7 Investment in Accordance With Act
All contributions, 4nce
terest earned, and any assets of the Plan shall at all times be invested and
managed in accor with the requirements of the Act.
3.8 Revers
The Employer shall have the right to a reversion of assets from this Plan if (1) a contribution
is conditioned upon the initial qualification of the Plan, a timely determination letter request
is filed, and the Plan receives an adverse determination, or (2) the reversion is due to a good
faith mistake of fact, or (3) the contribution is conditioned on its deductibility under Section
404 of the Code. Notwithstanding the foregoing, (i) any contribution made by the Employer
because of a mistake of fact must be returned to the Employer within one year of the
contribution; (ii) in the event the deduction of a contribution made by the Employer is
disallowed under Section 404 of the Code, such contribution (to the extent disallowed) must
be returned to the Employer within one year of the disallowance of the deduction; and (iii) in
the event that the Commissioner of Internal Revenue determines that the Plan is not initially
qualified under the Internal Revenue Code, any contribution made incident to that initial
qualification byte Employer must be returned to the Employer within one year after the
date -the initial qualification is denied, but only if the application for the qualification is made
by the time prescribed by law for filing the Employer's return for the taxable year in which
the Plan is adop ed, or such later date as the Secretary of the Treasury may prescribe.
9
NB1:790870.2
ARTICLE IV
FUNDING AND VALUATION
4.1 Fun
In accordance with Section 53216 of the Act, the assets of the Plan shall be held in a trust or
invested in an in 3urance contract which may or may not be held in a trust. Subject to Sections
53216.1, 53216.5 and 53216.6 of the Act for the purpose of funding this Plan, the Employer
shall provide the Trustee or Investment Manager with written direction on how to invest the
assets of the P an. Notwithstanding anything to the contrary contained in the Trust
agreement, in -kind contributions shall not be permissible under the Plan.
4.2 Valuatio
The value of a Participant's Employer Contribution Account and Employee Contribution
Account shall be determined annually on a date hereafter referred to as a Valuation Date. As
of each Valuation Date there shall be determined the amount of the investment gain or loss to
be credited to the total of all assets held for Employer Contribution Accounts and Employee
Contribution Ac ounts during the period since the preceding Valuation Date. The total
adjustment shall be allocated among all of the individual Participant and Inactive Participant
Accounts as oft e current Valuation Date. The assets of the Trust shall be valued annually at
fair market value. On the Valuation Date, the earnings and losses of the Trust will be �--r
allocated to each Participant and Inactive Participant.
4.3 Type and Nature of Plan and Trust
Neither the faith and credit nor the taxing power of the Employer, the State of California or
any other political subdivision thereof other than the Employer is pledged to the distribution
of benefits hereunder. Except for contributions and other amounts hereunder, no other
amounts are pledged to the distribution of benefits hereunder. Distributions of benefits are
neither general or special obligations of the Employer, but are payable solely from
contributions, as more fully described herein. No Employee or Beneficiary may compel the
exercise of the taxing power by the Employer. Distributions of benefits are not a debt of the
Employer, the State of California or any of its political subdivisions within the meaning of
any constitutional or statutory limitation or restriction. Distributions are not a legal or
equitable pledge, charge, lien or encumbrance, upon any of the Employer's property, or upon
any of its income receipts or revenues, except amounts in the accounts which are, under the
terms of this Plan and the Act, set aside for distributions of benefits. Neither the Participants
of the legislative body of the Employer nor its officers, employees, agents or volunteers are
liable hereunder. Benefits under the Plan may not be assigned or alienated except to the
extent allowable tinder Sections 401(a)(13) and 414(p) of the Code.
10
NB1:790870.2
ARTICLE V
VESTING
5.1 Vesting in Employer Contribution Account
Each Participant shall be one hundred percent (100%) Vested in his Employer Contribution
Account at all ti es.
5.2 Vesting in Employee Contribution Account
Each Participant shall be one hundred percent (100%) Vested in his Employee Contribution
Account at all ti es.
5.3 Full or Partial Termination
Notwithstandir
Employer cont
amounts credit
percent (100%;
NB 1:790870.2
the vesting schedule in 5.1 and 5.2, upon the complete discontinuance of
)utions to the Plan or upon any full or partial termination of the Plan, all
to the Account of any affected Participant shall become one hundred
ested and shall not thereafter be subject to forfeiture for any reason.
11
6.1
ARTICLE VI
DISTRIBUTION OF BENEFITS
Death Benefits
(a) istributions from the Plan shall be made in accordance with Section
401(a)(9) of the Code, including the incidental death benefits under Section 401(a)(9)(G) and
the regulations hereunder. The required beginning date of benefit payments that represent
the entire interest of the Participant shall be as follows:
(b) A. Participant shall have the option of commencing distributions by April 1
following age 7 %2 or deferring payment until actual retirement. For avoidance of doubt, a
Participant is not required to receive a distribution while an Employee (in 2009 or any other
year).
(c) Time and Manner of Distribution.
(i Required Beginning Date. The Participant's entire interest will be
distributed to the Participant no later than the Participant's Required Beginning Date.
(i') Death of Participant Before Distributions Begin. If the Participant
dies before distributions begin, the Participant's entire interest will be distributed no later
than December 31 of the calendar year immediately following the calendar year in which the
Participant died.
(i i) Forms of Distribution. The Participant's interest shall be distributed in
the form of a sin le sum on or before the Required Beginning Date.
(i) Required Beginning Date. The April 1 of the calendar year following
the calendar year in which the Participant attains age 70'V2 or, if the Participant opts to defer
payment until retirement, the April 1 of the calendar year following the calendar year in
which the Participant actually retires.
6.2 Amount of Distribution
A Participant who terminates employment for any reason shall be entitled to one hundred
percent (100%) f the value of his Aggregate Account determined as of the most current
Valuation Date.
6.3 Lump
All distributions
the distributee's ,
NB 1:790870.2
Distributions
I be made in a lump sum payment in cash constituting the entire value of
•egate Account.
12
6.4 Time off Distribution
Unless otherwise specified herein, benefits shall become distributable to a Participant (or the
Participant's Beneficiary in any case of the Participant's death) upon any termination of the
Participant's employment by reason of resignation, discharge, retirement, disability, or death.
This Plan does not provide for mandatory distributions of any amount. Therefore, no
distribution is ry ade (regardless of the amount of the distribution) without the consent of the
Participant (or t e Participant's Beneficiary in any case of the Participant's death).
6.5 Participant's Rights Not Subject To Execution
The right of a P rticipant to a benefit under this Plan is not subject to execution or any other
process whatsoe er, except to the extent permitted by Section 704.110 of the Code of Civil
Procedure of the State of California and is unassignable.
6.6 Unclaimed Benefits
Each Participant and Beneficiary of a deceased Participant shall file with the Plan
Administrator from time to time in writing, his home address and each change of home
address. Any communication shall be addressed to the Participant or the Beneficiary at his
last home address filed with the Plan Administrator, or if no such address was filed, then at
his last home ddress as shown on the Employer's records, shall be binding on the
Participant or Beneficiary for all purposes of the Plan. The Plan Administrator shall not be
obligated to search for or ascertain the whereabouts of any Participant or Beneficiary, and
the Participant's Accrued Benefit shall be subject to the abandoned property law of the
applicable jurisdiction.
6.7 Direct
(a) Notwithstanding any provision of the Plan to the contrary that would
otherwise limit a distributee's election under this Plan, a distributee may elect, at the time and
in the manner prescribed by the Plan Administrator, to have any portion of an eligible
rollover distribution paid directly to an eligible retirement plan specified by the distributee in
a direct rollover. A distributee includes an Employee or former Employee. In addition, the
Employee's or former Employee's surviving spouse and the Employee's or former
Employee's spou e or former spouse who is the alternate payee under a qualified domestic
relations order, as defined in Section 414(p) of the Code, are distributees with regard to the
interest of the spouse or former spouse.
(b) E
the spouse of the
eligible rollover
individual retirerr
account that is e;
Beneficiary. Suc
to the provisions
any required mil
NB 1:790870.2
active for distributions after December 31, 2006, a Beneficiary who is not
articipant may elect a direct trustee to trustee transfer that qualifies as an
.stribution under this Section 6.7. Such transfer shall be made to an
it plan described in Section 408(a) of the Code or an individual retirement
iblished for the purpose of receiving the distribution on behalf of such
individual retirement account shall be deemed an inherited IRA pursuant
'Section 402(c)(11) of the Code. Also, in this case, the determination of
num distribution under Code Section 401(a)(9) that is ineligible for
13
rollover shall
3 95.
(c)
An eligible roll,
credit of the dis
distribution tha
frequently than
lives (or joint
Beneficiary, or
extent such dis
hardship distrib
distribution mei
are not includib.
individual retire
on or after Jam
qualified define
after January 1,
Code or to an
separately accoi
accounting for
portion of the di
(s
An eligible retire
the Code, an in
qualified plan de
rollover distribul
IRA described ir,
Code Section 40
is maintained by
state or political
transferred into s
apply in the case
is the alternate p;
of the Code. M
an eligible retires
Code, provided 1
Plan to a Roth IR
NB 1:790870.2
made in accordance with Notice 2007-7, Q&A 17 and 18, 2007-5 I.R.B.
Eligible Rollover Distribution
Ter distribution is any distribution of all or any portion of the balance to the
ibutee, except that an eligible rollover distribution does not include: (i) any
is one of a series of substantially equal periodic payments (not less
anually) made for the life (or life expectancy) of the distributee or the joint
life expectancies) of the distributee and the distributee's designated
)r a specified period of ten (10) years or more; (ii) any distribution to the
ibution is required under Section 401(a)(9) of the Code; and (iii) any
don. A portion of a distribution shall not fail to be an eligible rollover
ly because the portion consists of after-tax employee contributions which
in gross income. However, such portion may be transferred only to (A) an
tent account or annuity described in Section 408(a) or (b) of the Code (or,
ry 1, 2008, to a Roth IRA described in Section 408A of the Code) or a
contribution plan described in Section 401(a) of the Code; or (B) on or
007, to a qualified defined benefit plan described in Section 401(a) of the
muity contract described in Section 403(b) of the Code, that agrees to
it for amounts so transferred (and earnings thereon), including separately
e portion of the distribution that is includible in gross income and the
ribution that is not so includible.
Eligible Retirement Plan
ment plan is an individual retirement account described in Section 408(a) of
lividual retirement annuity described in Section 408(b) of the Code, a
scribed in Section 401(a) of the Code that accepts the distributee's eligible
ion, an annuity contract described in Section 403(b) of the Code, a Roth
Code Section 408A (but only if the distributee satisfies the requirements of
3A(c)(3)(13)), and an eligible plan under Section 457(b) of the Code which
a state, political subdivision of a state, or any agency or instrumentality of a
subdivision of a state and which agrees to separately account for amounts
.ich plan from this Plan. The definition of eligible retirement plan shall also
of a distribution to a surviving spouse, or to a spouse or former spouse who
[yee under a qualified domestic relation order, as defined in Section 414(p)
h respect to eligible rollover distributions made on or after January 1, 2008,
lent plan shall also include a Roth IRA as described in Section 408A of the
Zat the distributee is not restricted from making such a rollover from this
A pursuant to Section 408A(c) of the Code.
14
A direct roll
distributee.
6.8
Notwithstandin,
service credit v
Section 414(u)
January 1, 200,
benefits (other
provided under
account of deatl
Section 3401(h;
wage payment s
NB 1:790870.2
i) Direct Rollover
is a payment by the Plan to the eligible retirement plan specified by the
Service
any provision of this Plan to the contrary, contributions, benefits and
th respect to qualified military service will be provided in accordance with
f the Code. In addition, the survivors of any Participant who dies on or after
while performing qualified military service, are entitled to any additional
han benefit accruals relating to the period of qualified military service)
`he Plan had the Participant resumed and then terminated employment on
A Participant receiving a "differential wage payment," as defined in Code
2) shall be treated as an Employee of the Employer, and the differential
call be treated as Compensation.
15
7.1
of Beneficiary
ARTICLE VII
DEATH BENEFITS
Each Participant and Inactive Participant shall have the right to designate a Beneficiary to
receive the death benefits that are payable from this Plan. Such designation must be
evidenced by a written instrument filed with the Employer on a form prescribed by the
Employer and signed by the Participant.
7.2 Married l Participant
The Beneficiary for a married Participant shall at all times be the Participant's spouse and
may not be chan ed to someone other than such spouse unless the consent of such spouse is
provided upon a written form witnessed by a duly authorized Plan representative or a notary
public and acceptable to the Employer. If no such designation is on file with the Employer
at the time of th death of the Participant, or if for any reason at the sole discretion of the
Employer such designation is defective, then the spouse of such Participant shall be
conclusively dee ed to be the Beneficiary designated to receive such benefit.
7.3 Spouse's l Signature
The signature o the Participant's spouse shall be required on a designation of beneficiary
form if the spouse is not the Beneficiary, unless the Participant declares in writing that one
of the following conditions exists:
(a) The Participant is not married;
(b) The Participant does not know and has taken all reasonable steps to determine
the whereabouts f the spouse;
(c) The spouse is incapable of executing the acknowledgement because of an
incapacitating mental or physical condition.
7.4 Default
In the event the Participant dies and is not survived by a spouse, the Aggregate Account shall
pass by the laws of intestacy.
7.5 Domestic Partners
Effective as of J
"marriage" shalt
"registered dome
"spouse" shall al
and a "reaistere
NB 1:790870.2
inuary 1, 2005, for purposes of this Article VII only: (1) all references to
also include "registered domestic partnerships," (2) individuals in a
stic partnership" shall be considered "married," and (3) all references to a
;o include a "registered domestic partner." A "registered domestic partner"
I domestic partnership" refer to persons and partnerships satisfying the
requirements of the California Family Code and officially registered as of the date of death
with the Secreta y of State as such in accordance with Section 298.5 of the California Family
Code.
17
NB 1:790870.2
8.1 D
ARTICLE VIII
ADMINISTRATION AND AMENDMENT OF PLAN
of Plan Administrator
The Employer is the Plan Administrator under this Plan unless an individual employed by, or
a position within the Employer, has been appointed by the Employer as Plan Administrator.
In addition to a Plan Administrator the Employer may designate a delegatee to perform those
activities relating to the Plan as specified in the written appointment of such delegatee. The
term "Employer' as used in this Article VIII shall mean the Plan Administrator or delegatee
where responsibility for administration of the Plan has been given to such parties.
8.2 Rules and Regulations
The Employers iall supervise and control the operation of this Plan in accordance with its
terms and may make rules and regulations for the administration of this Plan that are not
inconsistent witi the terms and provisions hereof. The Employer shall determine any
questions arising in connection with the interpretation, application or administration of the
Plan (including any question of fact relating to age, employment, Compensation or eligibility
of Employees) a d its decisions or actions in respect thereof shall be conclusive and binding
upon any and a 1 persons and parties. The Employer's interpretations, determinations and
actions taken under the Plan shall in all cases result in like treatment for Employees who are
similarly situated.
8.3 Amendment and Termination
The Employer sl
event of a termh
Participant affec
be liable for the
payable solely fr
1 have the right to amend, modify or terminate this Plan at any time. In the
ion or the complete discontinuance of this Plan, the entire interest of each
I thereby shall immediately become 100% Vested. The Employer shall not
yment of any benefits under this Plan and all benefits hereunder shall be
i the assets of the Trust.
18
NB 1:790870.2
ARTICLE IX
ANNUAL ADDITION LIMITS
9.1
Section 3.5 of the Plan shall be construed in accordance with this Article IX. Unless the
context clearly requires otherwise, words and phrases used in this Article IX shall have the
same meanings that are assigned to them under the Plan.
9.2 D
As used in this Article IX, the following terms shall have the meanings specified below.
(a)"Annual Additions" shall mean the sum credited to a Participant's Accounts
for any Plan Year of (i) Employer contributions, (ii) Employee contributions, (iii)
forfeitures, and (iv) amounts credited after March 31, 1984 to an individual medical
account, as defined in Section 415(1)(2) of the Code which is part of a pension and annuity
maintained by the Employer.
(b)"Defined Benefit Plan" means a plan described in Section 4140) and
414(k)(2) of the ode.
(c) efined Contribution Plan" means a plan described in Section 414(i) and
414(k)(2) of the ode.
(d)"Section 415 Compensation" shall mean a Participant's wages within the
meaning of Code Section 3401(a) and all other payments of compensation to the Participant
by the Employe (in the course of the Employer's business) for which the Employer is
required to provide the Participant a written statement under Code Sections 6041(d),
6051(a)(3) and 6 52. Section 415 Compensation shall be determined without regard to any
rules under Code Section 3401(a) that limit the remuneration included in wages based on
the nature or location of the employment or the services performed. Compensation for any
limitation year is the compensation actually paid or includible in gross income during such
year. Compensation paid or made available during a limitation year shall include amounts
that would otherwise be included in compensation but for an election under Code Section
125(a), 132(f)(4) 402(e)(3), 402(h)(1)(B), 402(k) or 457(b). "Section 415 Compensation"
does not includ
amounts paid or
from employmen
shall be include
have been paid t
Employer, and
Participant's regi
regular working
similar comnens;
NB1:664952.7
any amounts paid following a severance from employment, except
.ncludible in gross income by the later of 2 1/2 months after a severance
or the end of the Plan Year that includes the severance from employment
if, (i) absent the severance from employment, such compensation would
the Participant while the Participant continued in employment with the
uch payments represent regular compensation for services during the
lar working hours (or compensation for services outside the Participant's
hours, such as overtime or shift differential), commissions, bonuses or
tion, (ii) the payment is for unused accrued bona fide sick, vacation or
19
other leave th,
or (iii) the pa
deferred comp
continued, but
above shall n
employment, c
from employm
employment.
9.3 Annual
the Participant would have been able to use if employment had continued,
ment is received by the Participant pursuant to a nonqualified unfunded
lsation plan and would have been paid at the same time if employment had
inly to the extent includible in gross income. Any payments not described
be considered Section 415 Compensation if paid after severance from
en if they are paid by the later of 2 12 months after the date of severance
at or the end of the limitation year that includes the date of severance from
ition Limitations
(a) he compensation limitation of Section 3.5 of the Plan shall not apply to any
contribution fo medical benefits (within the meaning of Code Section 419A(0(2)) after
separation from service which is treated as an Annual Addition.
(b)
the Plan, to o
in Article III
and such of
accomplished
the fiduciary i
the terms of
Plan.
(c) 1
(b) of this Artic
IRS guidance (�
NB1:664952.7
any Employer contributes amounts, on behalf of Participants covered by
r Defined Contribution Plans, the limitation on Annual Additions provided
the Plan shall be applied to Annual Additions in the aggregate to the Plan
r plans. Reduction of Annual Additions, where required, shall be
reducing contributions under such other plans pursuant to the directions of
administration of such other plans or under priorities, if any, established by
h other plans, and then, if necessary, by reducing contributions under the
the event the limitations of Section 3.5 of the Plan or Sections 9.3(a) or
IX are exceeded such excess may be corrected as permitted by applicable
1 as under Revenue Procedure 2008-50 or its successors).
20
ADOPTION OF THE AMENDED AND RESTATED
CITY OF DOWNEY
PARS ALTERNATE RETIREMENT SYSTEM
The Amended ajnd Restated City of Downey PARS Alternate Retirement System is hereby
adopted.
BY:
TITLE: Director of Finance
DATE: t I (, L( L1"
BY:
TITLE: City Manager
DATE: 11/25/14
ATTEST:
BY.
ADRIA M. JIMENE
CITY CLERK
DATE: _ .--)q
APP VED AS TO F
BY:
JETTE M. ABICH GARCIA
CITY ATTORNEY
Volume Submitter Sponsor: Public Agency Retirement Services
P.O. Box 11119
Newport Beach, CA 92658-5019
(800)540-6369
Volume Submitter Phan Letter Serial No: J593760a
21
NB1:664952.7