R-7978
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RESOLUTION NO. 7978(CCS}
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
IN OPPOSITION OF PROPOSED FDIC REGULATIONS [12 C.F.R. 330.12 (e)]
WHEREAS, section 457 of the Internal Revenue Ser-
vice Code was enacted to enable public sector employees to tax-
defer current income to provide a source of revenue to supplement
the benefits that they will receive from employer-provided re-
tirement systems~ and
WHEREAS, the City of Santa Monica established a
deferred compensation plan under Section 457 of the Internal
Revenue Service Code to provide this benefit to its employees I
and
WHEREAS, ci ty of Santa Monica employees voted to
have their deferred compensation funds invested with Great West-
ern Bank in order to obtain a $100,000 FDIC insurance guarantee
on each individual participant I s deferred compensation account I
and
WHEREAS, the Federal Deposit Insurance Corporation
(FDIC) has now proposed regulations [12 C.F.R. 330.12 (e)) that
would eliminate the $100,000 FDIC insurance guarantee limit for
each individual participant in the city's deferred compensation
plan,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
SANTA MONICA DOES RESOLVE AS FOLLOWS:
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SECTION 1. The city of Santa Monica strongly op-
poses the proposed FDIC regulations [12 C.F.R. 330.12 (e)] that
would apply the $100,000 insurance limit guarantee to the City of
Santa Monica's total deferred compensation plan and all other
deposits of the City of Santa Monica, thereby eliminating the
$100,000 insurance limit for each individual participant's
account.
SECTION 2.
The Ci ty of santa Monica urges the
Federal Deposit Insurance Corporation (FDIC) to not implement
these proposed regulations [12 C.F.R. 330.12 (e)].
SECTION 3.
The city Clerk shall mail a copy of
this Resolution to the Federal Deposit Insurance corporation and
to the House and Senate Banking Committee members that represent
our area.
SECTION 4.
The City Clerk shall certify to the
adoption of this Resolution, and thenceforth and thereafter the
same shall be in full force and effect.
APPROVED AS TO FORM:
(1...r."......, )1;..... ~...
ROBERT M. MYERS
City Attorney
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Adopted and approved this 13th day of February, 1990.
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I hereby certify that the foregoing Resolution No. 7978(CCS)
was duly adopted by the City Council of the City of Santa Monica
at a meeting thereof held on February 13, 1990 by the following
council vote:
Ayes: Councilmembers: Abdo, Finkel, Genser, Jennings,
Katz, Mayor Zane
Noes: councilmembers: None
Abstain: Councilmembers: None
Absent: Councilmembers: Reed
ATTEST:
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