2h. Deferred Compensation Plan.1
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1
MEMORANDUM
CITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Mayor and City Council
FROM: Don Ashworth, City Manager
DATE: May 2, 1996
SUBJ: Resolution Recognizing ICMA as an Authorized Deferred Compensation
Provider
A resolution similar to the one attached was app v6d 1976 and the International City
Managers Association (ICMA) was the only def ed"compensation plan in existence for city
employees from 1976 through the early 1980s � '
In therly 1980s PEBSCO (Public Employee
Benefit Securities Corporation) requested to be" consided as an alternative deferred
compensation plan for city employees and that resolutioffmas approved. PEBSCO has been
aggressive in getting employees to recognize the necessityto put dollars aside for their own
retirement. In that process, I converted m ICMA to PEBSCO myself Various factors have
led me to be unhappy with PEBSCO art I would like to rein to ICMA as a deferred
compensation provider. However, our account balance 4ih ICMA went to zero, a new
resolution is required to be passedlpIt should be noted that the, dollars being contributed to either
PEBSCO or ICMA are 100 ° /qoe ployee dollars. However, an ther are recognized as approved
deferred compensation ov c ers by the IRS, dollars contributes jo the deferred compensation
tt bl wathd .0
p lan b employees ai�e "���t � 41 �'
RECOMMEND
Approval of the attached resolution recogi zing
provider for city employees as an alternative is
compensation
April 19, 1996
I
I am pleased that you have selected the Retirement Corporation Deferred Compensation Plan
Don Ashworth
I
City Administrator
City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317
Re: Section 457 Deferred Compensation Plan
Dear Mr. Ashworth:
I
I am pleased that you have selected the Retirement Corporation Deferred Compensation Plan
for your employees.
I
Enclosed is everything you need to begin implementing your new Deferred Compensation plan:
(1) A "Suggested Resolution for a Legislative Body Relating to a Deferred Compensation
Plan ". This resolution should be completed by the authorized person at your office.
The resolution should be certified and a copy retained in your office. The original should
be returned to this office in the enclosed envelope.
If you choose to use a resolution other than the one enclosed, please ensure that it
specifically adopts the ICMA Retirement Corporation Deferred Compensation Plan (or an
individually designed plan which has been approved by our office) and executes the
ICMA Retirement Trust.
Mr. Ashworth, please note that a plan is considered terminated once the account
balance reaches $0.00. A new resolution must be passed by the legislative body and
a new account number will be assigned by ICMA Retirement Corporation.
(2) The two Administrative Services Agreements are to be signed by the person authorized
to do so at your office and both originals returned to me. I will in turn have both
agreements executed by our Corporate Secretary, return one original to you, and retain
one original in our files.
(3) The "457 Deferred Compensation Plan Employer Data Form" must be completed and
returned to me.
(4) The "Plan Document ", "Declaration of Trust ", "457 Deferred Compensation Plan
Employer Manual" and "Making Sound Investment Decisions: A Retirement Investment
Guide" should be retained in your office for future reference.
(5) Employee enrollment forms.
(6) A pre -paid, pre- addressed envelope.
' Page 2 of 2
Don Ashworth
April 19, 1996
' After reviewing the enclosed materials, please contact me directly at 1- 800 - 326 -7272,
extension 4649, with any questions you may have and to advise me if the adoption process
' is expected to take longer than 30 days. Also, please direct any requests for additional supplies
to my attention during the adoption process.
' Sincerely,
A. E. Dunston
' Senior Plan Analyst
Enclosures
' cc: Mr. Andy Anderson, Territory Director
Mr. Tom Hilson, Marketing Representative
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SUGGESTED RESOLUTION FOR A LEGISLATIVE BODY
RELATING TO A DEFERRED COMPENSATION PLAN
Name of Employer:
Title of Program Coordinator:
(see definition below for duties of Program Coordinator)
Resolution of the above named Employer ( "Employer ")
WHEREAS, the Employer has employees rendering valuable services; and
State:
WHEREAS, the establishment of a deferred compensation plan for such employees serves the interests of the Employer by
enabling it to provide reasonable retirement security for its employees, by providing increased flexibility in its personnel
management system, and by assisting in the attraction and retention of competent personnel; and
WHEREAS, the Employer has determined that the establishment of a deferred compensation plan to be administered by the ICMA
Retirement Corporation serves the above objectives; and
WHEREAS, the Employer desires that its deferred compensation plan be administered by the ICMA Retirement Corporation, and
that the funds held under such plan be invested in the ICMA Retirement Trust, a trust established by public employers for the
collective investment of funds held under their retirement and deferred compensation plans;
NOW THEREFORE BE IT RESOLVED that the Employer hereby adopts or has previously adopted the deferred compensation
plan (the "Plan ") in the form of: (Select one)
11The ICMA Retirement Corporation Deferred Compensation Plan, referred to as Appendix A
The plan provided by the Employer (executed copy attached hereto).
BE IT FURTHER RESOLVED that the Employer hereby executes the Declaration of Trust of the ICMA Retirement Trust, attached
hereto as Appendix B, intending this execution to be operative with respect to any retirement or deferred compensation plan
subsequently established by the Employer, if the assets of the plan are to b inve ted in the ICMA Retirement Trust.
BE IT FURTHER RESOLVED that the (use title of official, not name) shall
be the coordinator for this program; shall receive necessary r rts, notices, etc. from the ICMA Retirement Corporation or
the ICMA Retirement Trust; shall cast, on behalf of the E loyer, any required votes under the ICMA Retirement Trust;
Administrative duties to carry out the plan may be assigned to the appropriate departments, and is authorized to execute
all necessary agreements with ICMA Retirement Corporation incidental to the administration of the Plan.
,Clerk of the (City, County, etc.) of
hereby certify that the foregoing resolution, proposed by, in the (Council Member, Board, etc.) of
duly passed and adopted in the (Council, Board, etc.) of the (City, County, etc.) of
meeting thereof assembled this day of
AYES:
NAYS:
ABSENT:
(Seal)
M
..
was
at regular
, by the following vote:
Clerk of the (City, County, etc.)