HomeMy WebLinkAboutResolution No. 07-7031 - Amend & Restate Alt Retirement Syst for Hourly Employees; Terminate Agmt of Principal Financial and appoint PARSRESOLUTION NO. 07 -7031
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
AMENDING AND RESTATING THE CITY OF DOWNEY ALTERNATIVE
RETIREMENT SYSTEM FOR HOURLY EMPLOYEES; TERMINATING THE
AGREEMENT OF PRINCIPAL FINANCIAL FOR ADMINISTRATION OF THE
PLAN; AND APPOINTING PUBLIC AGENCY RETIREMENT SERVICES (PARS)
AS TRUST ADMINISTRATOR OF THE PLAN AND UNION BANK OF
CALIFORNIA AS TRUSTEE OF THE PLAN.
WHEREAS, it was determined to be in the City's and its employees' best interest to
adopt the City of Downey Alternative Retirement System for Hourly Employees (the "Plan "), an
Alternative to Social Security Plan, for its hourly employees not eligible for membership in the
Public Employees' Retirement System ( "PERS "), thereby meeting the requirements of Section
11332 of the Omnibus Budget Reconciliation Act ( "OBRA `90 ") and Section 3121 (b)(7)(F) of the
Internal Revenue Code ( "Code "),
WHEREAS, the City appointed Principal Financial as administrator for the Plan,
WHEREAS, the City is eligible to be member of the Public Agency Retirement System
(PARS) Trust Program which has made available a 401 (a) Alternative to Social Security Plan
that meets the requirements of OBRA '90, the Code and relevant sections of the Internal
Revenue Code and the California Government Code,
WHEREAS, the City has determined that it is in the City's and its employees' best
interest to amend and restate the Plan into the City of Downey PARS Alternative Retirement
System, and appoint Public Agency Retirement Services as Trust Administrator and Union Bank
of California as Trustee.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City Council hereby adopts the Amended and Restated Plan,
hereinafter referred to as the City of Downey PARS Alternate Retirement System (the
"Amended and Restated Plan ") and the "PARS" Trust ( "the Trust ") to hold the plan assets of the
Amended and Restated Plan, effective January 1, 2008 (the "Amended and Restated Date ");
SECTION 2. The City Council hereby terminates the Administrative Services Agreement
of Principal Financial effective January 1, 2008.
SECTION 3. The City Council hereby appoints Public Agency Retirement Services
( "PARS ") as the Trust Administrator and Union Bank of California as Trustee for the Amended
and Restated Plan and Trust;
SECTION 4. The City Council hereby appoints the Director of Finance, or his /her
successor or his /her designee as the City's Plan Administrator for the Amended and Restated
Plan and Trust;
RESOLUTION NO. 07 -7031
PAGE TWO
SECTION 5. The City Council hereby authorizes the City's Plan Administrator to
implement the Amended and Restated Plan and Trust, execute legal documents on behalf of
the City and to take whatever additional actions are necessary to maintain the City's
participation in the Amended and Restated Plan and to maintain compliance of any relevant
regulation issued or as may be issued; therefore, authorizes the City's Plan Administrator to
take whatever additional actions are required to administer the City's Amended and Restated
Plan.
APPROVED AND ADOPTED this 25th day of September 2007.
RICK TREJO
RICK TREJO, Mayor
ATTEST:
KATHLEEN L. MIDSTOKKE
KATHLEEN L. MIDSTOKKE, City Clerk
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 September 2007, by the
following vote, to wit:
AYES:
5
Council Members:
Bayer, Cartozian, Gafin, Guerra, Mayor Trejo
NOES:
0
Council Member:
None
ABSENT:
0
Council Member:
None
ABSTAIN:
0
Council Member:
None
KATHLEEN L. MIDSTOKKE
KATHLEEN L. MIDSTOKKE, City Clerk