SR-602-002 (2)
PE:JSS:ss
council Meeting:
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Santa Mon1ca,
California
"..g
MAY 2 6 1981
May 26, 1987
TO:
Mayor and city council
FROM:
city Staff
SUBJECT:
Resol ution Amending the City's Deferred Compensation
Plan
INTRODUCTION
This report requests adoption of a Resolution amending the city's
Deferred Compensation Plan to include additional investment
options.
BACKGROUND
The city has approximately 300 participants in its deferred
compensation plan; this number includes blue collar, clerical,
professional and management.
Currently, the City'S deferred
compensation funds are placed in a savings plan with Great
Western earning lO% interest.
staff had earlier decided that
this would be the only option that would be offered to the
employees because the savings vehicle was easiest for the average
participant to understand and would provide a safe investment
with a significant return. However, over the last few years,
many employees have expressed an interest in having additional
investment options available to them for their deferred
compensation funds. And, after December of 1987, Great Western
will no longer guarantee the city a 10% interest rate in the
savings plan.
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MAY 2 6 \9&1
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Great Western has .en offering a multiple .estment vehicle
plan since 1982; in addition to the savings option, this plan
offers a bond fund, a growth (higher risk) stock fund, a "blue
chip" stock fund, and an annuity contract. These programs are
provided through the American Funds Group, which has an excellent
reputation for mutual fund management.
It is anticipated that the City would make these options
available during the open enrollment period in June, 1987. Great
Western would provide counsellors who will orient employees to
the new investment options and explain the higher risk and longer
term nature of the mutual funds including the fund's fee
structure and penalties schedule for moving or withdrawing funds.
BUDGET/FINANCIAL IMPACT
Amendment of the plan to include additional investment options
does not involve any expenditure of City funds.
RECOMMENDATIONS
It is recommended that council adopt the attached Resolution
authorizing the City Manager to sign the amendment to the City's
deferred compensation plan to include additional investment
options.
Prepared By: Sharon M. Skeels
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BEFORE DISTRIBUTIO~ECK CONTENT OF ALL
DISTRIBUTION OF RESOLUTION H ?Lt?? ~e~
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Wa SIt amended? Jl...."':. tl
VOTE: AffIrmatIve: ~
Negative' , (r?
Abstain: )
Ab s en t : it V A--T?~ ~ h ^,-_HLtU./
PROOF VOTE~ WITH ANOTHER PERSON BEFbRE A~~THING
DISTK.InuTIUN-: UK...i:GINAi. 1:U be signed, sealed and
NEWSPAPER PUBLICATION (Date: )
Department originating staff report ( * )
*Cl.ty Attorney does not want copies of his u:CU1nanCeS or reso.Lutl..ons.
tltanagement SerVJ,i-s:e~, Lynne Bar.re.tte - urdinances only
Agency mentioned In document or staff report
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Council Meeting Date
Agenda Item 11
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SubJect file (agenda packet)
Counter fIle
o the r s -; (Review for depcu: Ulwents who need to know) .
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AIrport
Parking Auth.
Auditorum
Personnel
BUIlding Dept.
Planning
Police (en-
forcement?)
CLl1'uuJIUty and Econcnuc Dev.
FInance
Purchasing
Recr/Parks
Fire
General Servo
Transportation
LIbrary
Treasurer
Manager
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SEND F{)U~ COPIES OF ALL ORDINANCES TO:
CODFD SYSTEMS, Attn Peter Maclearie
~~O ~ain-~tr~et ~
A"I"! . l__ ~'~w Jersey _ 07717 _
SEND FOUR COPIES OF AT.L ORnTNANrT::_~ _TO:
DebIll ~yrick
SAN'fA MONICA MUNICfPAL COURT
" 725 MAIN STREEt Room -118
SANTA MONICA, CA 90401
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FOR ct C},ERK' 5
ORDINANCE Ii
ACTION
Introduced:
Adopted:
AUrifAYS PUBLISH AOOP'l'W ORDINANCES""
*Cross out Attorney I 5 approval
filed 1n Vault.
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(certified?)
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*Check COde Sections before sending.
TOTAL COPIES
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RESOLUTION NO. 7433
(City council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA
AMENDING THE CITY'S
DEFERRED COMPENSATION PLAN
WHEREAS, on October 11, 1983, the city Council of the City
of Santa Monica adopted Resolution No. 6759 (CCS) revising the
terms of a Deferred Compensation Plan for City employees; and
WHEREAS, it is desirous that provisions of the plan again
be revised to allow for additional investment options in the
Deferred Compensation Plan for city employees;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1: The attached Amendment to the City's Deferred
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Compensation ~rogram is-hereby approved.
SECTION 2: The Council authorizes the city Manager to sign
the attached document amending the City's Deferred Compensation
Plan.
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SECTION 3: The City Clerk shall certify to the adoption of
this Resolution, and thenceforth the same shall be in full force
and effect.
APPROVED AS TO FORM:
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ROBERT M. MYERS
City Attorney
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1987.
foregoing Resolution No. 7433(CCS)
was duly adopted by the City ouncil of the City of Santa Monica
at a meeting thereof held on May 26, 1987 by the following
council vote:
Ayes: Councilmembers: Jennings, H. Katz, Reed, Zane,
Mayor Conn
Noes: Councilmembers: None
Abstain: Councilmembers: None
Absent: Councilmembers: Finkel, A. Katz
ATTEST:
d.
tcti~
tltLd
Clerk
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A MEN D MEN T NO: 1
Du"ll<t<ED o::MPENSATION PROGRAM
U'l'1" OF SANTA IDNICA
'Ibis amendment is made to Section 6 of the CUsto::lial Agreement
between Great Western Savings an:i the City of santa Monica, to
include the following additional invesLment options:
1. Bon:i Fund of America (BFA) - a Mutl1::i11 Fund
2. GrtMth FI.ln:i of America (GFA) _ a Mutt_1-3_1 F'urD
3. Irwesbnent CUii;parly of America (lCA) - a Mutu;:t 1 Fund
4. Group Annuity Contract - an Investment Option
5. Si.n;Jle Premitnn Immediate Annuity (SPIA) -
a distribution option only
m WI'i'~ HERIDF, the parties have executed this }.mPndment to
the CUstcxlial Agreement. '!his Amendment to be effective on the
date below.
AGENCY
GREAT WE8'1~
BY:
BY
DATE:
DATE :