R-6443
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RESOLUTION NO. 6443(CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA AMENDING
THE CITY'S DEFERRED COI1PENSATION PLAN
l~REAS, on December 17, 1974 the City Council of the City of
Santa Monica adopted Resolution 4576 (CCS) establishing the terms
of a Deferred Compensation Plan for City employees; and
WHEREAS, provisions of that Plan are not responsive to benefit
changes established by the collective bargaining process or by
bargaining unit changes, and
WHEREAS, it is the desire of the City to make provision in
the Plan for such changes,
NO~~, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS
Section 1. The revised Deferred Compensation Plan of the City
of Santa Monica attached hereto is hereby approved
Section 2. The City Clerk shall certify to the adoption of
this Resolution, and thenceforth and thereafter the same shall be
1n full force and effect.
APPROVED AS TO FOID1'
R~.~~:O
City Attorney
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ADOPTED AND APPROVED THIS
23rd
DAY
OF February
,
, 1982.
{2~,
(jYOR
I HEREBY CERTIFY THAT THE FOREGOING RESOLUTION
NO. 6443(CCS)WAS DULY ADOPTED BY THE CITY COUNCIL OF THE
CITY OF SANTA MONICA AT A MEETING THEREOF HELD ON
February 23,
, 1982 BY THE FOLLOWING COUNCIL VOTE:
AYES:
COUNCILMEMBERS: Conn, Edwards, Press, JennIngs, Reed,
Zane and Mayor Yannatta Goldway
NOES:
COUNCILMEMBERS: Kane
ABSENT:
COUNCILMEMBERS: ~one
ABSTAIN:
COUNCILMEMBERS: None
ATTEST:
~ )h~lw-~
CITY CLERl<-
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ORIGINAL SECTIO~ V
(PRIOR TO PROPOSED A}lliNDME~T)
v. PARTICIPATION IN TEE p~~
(a) Elig~bility - ~~y employee or independently contracted
person whom the Organizacion desig~aces as eligible to
par~~c~?a~e.
(b) L~rollillent ~n che Plan:
(1) An eligible person~ with respect to participation
co~~enci~g in the ~nitial year of the Plan, may
becc~e a Partic~pant prior to or witr~n a reasonable
t~~e afte= the Plan becomes effect~ve, by agreei~g
to cefer c~?ensation not yet earned. A new Part~ci-
p~~t nay ag~ee to defer co~pensation not yet ea~ed,
but secn a~re~~enc must be mace prior to the begin-
nin~ of tr.e calendar year in which it is to be coree
e=fec-~ve.
(2) ~~ a~r~~e~~ to de=e= compensation may be modified
tc c~~~~e ~he ~~oun~ deferred but suc~ moclf~cat~o~
m~st be ~ade prior to the beginning of the calenda=
yea= in w~~~~ it is to become effective. A Partici-
pant nay te~inate h~s agre~~ent to defer conpensation
at any ti~e by giving written notice to the Organiza-
t~on at least 30 days prior to the e=fect~ve date cf~
the te~inaticn. A Partic~par.t who has te~inated
h~s agreement ~ay aga~n beco~e a Part~cipant by
execu~ion of a new agreement to cefer compensa=ion
not yet ear~ed, but such new ag=e~ent must be ~ade
prior to the beg~nr-i~g of tr.e calendar year in which
ic is ~o beco~e effec~~ve.
~CITY OF SANTA MONICA 4It
DEFERRED CO~WENSATION PLAN
I NAME - The name of th~s Plan is the City of Santa Monica Deferred
Compensation Plan (hereinafter referred to as the "Plan").
II PURPOSE - The primary purpose of the Plan is to attract and hold
certain key individuals by permitting them to enter into agreements
with the organization which will provide for monthly payments on
ret~rement, as well as death benefits in the event of death before
retirement.
III DEFINITIONS - For the purposes of this Plan, certain words or
phrases used here~n will have the following meanings:
(a) "Compensat~on" shall mean any payments for nomal or
contracted services rendered by the Participant to
the Organization.
(b) "Deferred Compensation" shall mean a retirement of com-
pensation not yet earned, which the Participant and the
Organization mutually agree shall be deferred in accor-
dance with the ~rovisions of this Plan
(c) "Normal Retirement" shall mean a retirement from service
with the Organization which becomes effective on the
first day of the calendar month after the Participant
meets the age and service requirements for Normal Retire-
ment specified in the Retirement Plan for the employees
of the Organization.
(d) "Early Retirement" shall mean a retirement from service
with the Organization which is effective prior to normal
retirement, provided the Participant has attained age 50.
(e) "Late Retirement" shall mean a retirement from service
with the Organization which becomes effective after the
Participant has attained the Normal Retirement age (When
any Part~cipant is placed on extended service with the
Organization after attaining Normal Retirement age, the
amount of compensation deferred by the Partici~ant under
this Plan will be continued for the per~od of such extended
service.)
(f) "Term~nation of Servlces" shall mean the severance of the
Participant's contract or employment with the Organization
prior to retirement.
(g) "Organization" shall mean City of Santa Honica.
(h) "Participant" shall IPean any employee or independently
contracted person who fulfills the eligibility and
enrollment requirements of Art~cle V of this Plan
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IV. ADMINISTRATION - This Plan shall be administered by the Organ-
ization. The Organization shall have full power and authority
to adopt rules and regulations for the admlnistratlon of the
Plan, and to interpret, alter, amend or revoke any rules and
regulations so adopted.
V. PARTICIPATION IN THE PLk~
(a) Eligibility - any employee or lndependently contracted
person whom the Organization designates ap ellgible to
participate.
(b) Enrollment in the Plan
(1) An eligible person, with respect to partlcipation
commencin~ in the initial year of the Plan, may
become a Participant prior to or within a reason-
able time after the ~lan becomes effective, by
agreeing to defer compensation not yet earned
(2) A new e@ployee may become a Partlcipant by agree-
ing to defer compensation not yet earned provided
that said agreement is made within sixty (60) days
of commenclng employment with the City.
(3) An employee may enroll in the Plan
a) by agreeing to defer compensation not yet
earned during the "open enrollment" period
to be held annually prior to the beginning
of the calendar year in which the agreement
is to become effective, or
b) by agreeing to defer compensation not yet
earned following execution of a ~emorandu~
of Understanding (MOD) with the employee's
bargaining unit, whlch MOD provides for a
change in the benefits offered to the
employee pertaining to Deferred Compensation
providing that said agreement is made within
Slxty (60) days of execution of the HOD, or
c) by agreeing to defer compensation not yet
earned fo11owlng a change in bargaining unlt,
WhlCh change entitles said employee to different
benefits pertaining to Deferred Compensation,
providing that said agreement is made within
sixty (60) days of said change in bar~alning
unit.
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(c) Mod~fication of Af,reement
An agreement to defer compensation may be mod~f~ed to change
the amount deferred
(1) During the "open enrollment" period to be held annually
pr~or to the beginning of the calendar year in which
the modification is to become effective, or
(2) Within s~xty (60) days of executioIT of a ~emorandum of
Understanding (MOU) with the employee's bargaining
unit, which MOU provides for a change in the benefits
offered to the employee pertain~ng to Deferred Compen-
sation
(3) Within sixty (60) days of a change in an employee's
bargaining unit, which change entitles said employee
to different benefits pertaining to Deferred Compen-
sation.
Cd) TerQination of Agreement
Participant may termlnate the agreement to defer compensation
at any time by giving wr~tten notice to the Organization at
least thirty (30) days prior to the effective date of the
term~nation. A Participant who has terminated the agreement
may again become a Participant by execution of a new agreement
to defer compensation not yet earned in accordance with the
provis~ons of paragraph V Cb) (3) above.
(e) In no event will compensation be deferred for any calendar
month unless an agreement providing for such deferral has
been entered into before the beginning of such month.
VI BENEFITS UNDER PLAN
(a) The Plan-provides for alternative types of payment as follows.
(1) Deferred Compensation Payments payable on the
happening of any of the following events.
(i)
(ii)
(iii)
(iv)
Normal Ret~rement of a Participant, or
Late Ret~rement of a Participant, or
Early Ret~rement of a Participant, or
Termination of Services of a Participant
(2) Death Benefits payable when a Participant dies
before Deferred Compensation Payments start
(b) The Organ~zat~on and the eligible person will execute an
agreeflent in writlng, confirm~ng their assumptions of the
obligatlons set forth in thls Plan, and the amounts of
compensation to be deferred
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(c) The Deferred Compensation Payments and the death beneflts
(if paid in other than a lump sum) may be fixed or fluc-
tuating amount equal to the amount that had been deferred
by the Partlcipant plus or minus earnings on that amount,
or may be an amount that would have been payable had the
compensation deferred been used to purchase a fixed or
varlab1e annuity or life insurance contract,
(d) (1)
Subject to the ~rovisions hereof, the Organization
agrees to pay Deferred Compensation Payments as
follows
(i) In the event of an early, normal or late retire-
ment, to the Participant so qualifying for 120
consecutlve months, commencing the first day
of the month following such retirement
(ii) In the case of termination of services, to the
Participant so qualifying for 120 consecutive
months, commencing the first day of the month
following such termination provided, hovever,
the Organization ~ay Ln its sole dlscretion
postpone such payments until the ter~inated
Participant reaches hlS 50th birthday or make
payment in a lump-sum or in installments over
some period other than 10 years
(2) Subject to the provisions hereof~ the Organization
agrees to pay Death Benefits to the Participant's
designated beneficiary, or the Participant's estate,
for 120 consecutive months, commencing on the first
day of the month following the Participant's death
provided, however, in the sole discretion of the
Organization such payment may be in a lump-sum or
installments over some period other than 10 years
(3) If a Participant has qualified to receive Deferred
Compensation Payments and such Participant dies
before receipt of all 120 monthly payments, the
Organlzatlon agrees to continue to pay such monthly
payments for the balance of the 120 month period to
the Participant's designated beneficiary or the
Participant's estate
(4) A Participant may designate one or more beneficiaries
and may name contingent beneficiarles to whom the
benefits will be payable upon death of any designated
beneficlary The Participant will also have the
right to change his designation of beneficlaries.
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(5) In the event that a Particioant's beneficiaries
die before. all monthly benefit payments become
payable to such beneficiaries, whether under (2)
or (3) above, then the commuted value (at a rate
of interest declded upon by the Organlzation) of
such monthly benefits will be paid by the Organ-
ization to the estate of the last surviving bene-
ficiary.
(6) The Organization may determine, by means of an ir-
revocable election to be executed in writing at
least 30 days prior to the Part~cipant's retire-
ment, In lleu of the Deferred Compensation Payment
prov~ded in (d) (1) (i) to pay an actuarial equiva-
lent series of paynents on anyone of the following
options. (1) a refund basis, (b) payments for
120, 180 or 240 consecutive Months and life there-
after, or (c) payments for his lifetime and
thereafter during any remaining lifetime of a
designated second person In the event such an
irrevocable election is made, the benefit oro-
vided in (d) (3) will appropriately be modified
to provide for payments in the case of (a) above,
the refund amount In a lump-sum, (b) above, for
the balance of the 120, 180 or 240 month period,
and (c) above, for the balance of the re~aining
lifetime of the designated second person.
EMERGENCY ~ITHDRA\~ALS - in the event of a serious financial emer-
gency, a Participant may apply to the Organization for withdrawal
from the Plan. If the Organization approves the withdrawal, such
withdrawal shall be treated as a termination of services as of
the effective date of the withdrawal. Payments will be made upon
such withdrawal in a lump sum or in substantially equal monthly,
quarterly or annual installments over a period of up to five years
from the date of the withdrawal, as determined by the Organization
in ~ts sole discretion. Serlous financial emergencies shall be
defined as specific conditions or circumstances involving real
emergencies which would cause great hardship to the Participant
or Beneficlary involved if early withdrawals were not permitted,
and which are beyond his control An emergency would not necessar-
ily cause great hardship in the case of another Participant The
amount that can be withdrffiVTI will be limited to that amount neces-
sary to meet the emergency situation.
LEAVE OF ABSENCE
(a) If a Part~cipant is on an approved leave of absence from
the Organizat~on with compensation, or on an approved
leave of absence without compensation for a period of not
more than six months, his participation in this Plan will
continue
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(b)
If a Particioant is on an aporoved leave of absence
without compensation and such leave of absence con-
tinues for more than six months, said Participant
will be deemed to have withdra~vn from the Plan as of
the end of such six month perlod The Organization
may elect to pay such withdrawn Participant the amount
of monev determlned as if the Participant had term-
lnated his service, said payment to be made in five
substantially equal annual installments, to commence
on the effective date of such withdrawal, or ln the
sole dlscretion of the Organization in a lump-sum
IX AMENDMENT OR TERMINATION OF PLAN - The Organization may at
any tlIDe terminate this Plan Upon such termination, the
Participants in the Plan will be deemed to have wlthdrawn
from the Plan as of the date of such termination, the Par-
ticipant's compensation on a non-deferred basis will be
thereupon restored, and the Organization agrees to pay
such Participants the amount of money determined as if the
Participant had terminated his employment, said payment
to be ~ade in five substantially equal annual installments,
or in the sole discretion of the Organizatlon, in a lump-
sum corr~encing on the effectlve date of such termlnation
The Organization may also amend the provisions of thlS Plan
at the time, provided, however, that no amendment shall
affect the rights of Participants or their beneficiarles to
the extent of any compensation deferred at the time of the
amendment as adjusted for the investment experlence here-
under prior to and subsequent to the amendment
X NON-ASSIGNABILITY CLAUSE - It is agreed that neither the
Participant, not his beneficiaries nor any other designee,
shall have any right to commute, sell, assign, transfer or
otherwise convey the right to receive any payments hereunder
which pa)~ents and rlghts thereto are expressly declared to
be non-assignable and nontransferable, and, in the event of
any attempted assignment or transfer, the Organization shall
have no further liability hereunder; nor shall any payments
be subject to attachment, garnlshment or execution, or be
transferable by operation of law in event of bankruptcy,
insolvency, except to the extent otherwise provlded by law,
notwlthstanding the above clause
XI PROHIBITION AGAINST FUNDI~G - If the Organization shall acquire
a life insurance or a variable annuity contract or any other
asset in connection with the liabilitles assu~ed by it here-
under it is expressly understood and agreed that neither the
Participant nor any beneficiary of the Participant shall have
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any right w~th respect to, or claim against, such contract
or other asset shall not he held in any way as collateral
security for the fulfilling of the obligations of the
Organization under this Agreement, and shall be subject to
the claims of cred~tors of the Organizat1on.
XII. APPLICABLE LA11 - The Agreement shall be construed under the
law of the State of California
IN WITNESS ~ffiEREOF, the Organizat~on has caused th~s Agreement
to be signed by its duly authorized Officer, and attested by
its Secretary on the day of . 19
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