HomeMy WebLinkAboutRes2016-027 Sponsored by: Hunt
CITY OF SEWARD,ALASKA
RESOLUTION 2016-027
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING AND RESTATING THE ICMA RETIREMENT
CORPORATION GOVERNMENTAL MONEY PURCHASE PLAN AND
TRUST DOCUMENT, IN RESPONSE TO CHANGES IN THE INTERNAL
REVENUE CODE
WHEREAS,the City of Seward("Employer")maintains a 401 Plan which is administered
by the ICMA Retirement Corporation(the"Administrator"); and
WHEREAS,the Administrator has recommended changes in the Plan document to comply
with instructions from the Internal Revenue Service, to incorporate recent federal legislation and
Internal Revenue Service Regulations governing said plans; and
WHEREAS,employers are required to execute a new adoption agreement by April 30,2016
to incorporate regulatory changes enacted since the prior plan restatement; and
WHEREAS,the city has established a qualified retirement plan for eligible employees that
serves the interest of the city 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 city has determined that the continuation of the qualified retirement plan
will help meet these objectives.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA,that:
Section 1. The City of Seward hereby amends and restates the qualified retirement plan in
the form of the ICMA Retirement Corporation Governmental Money Purchase Plan& Trust.
Section 2. The assets of the Plan shall be held in trust,with the City of Seward serving as the
trustee,for the exclusive benefit of the Plan participants and their beneficiaries,and the assets shall
not be diverted to any other purpose. The Trustee's beneficial ownership of Plan assets held in
VantageTrust shall be held for the further exclusive benefit of the Plan participants and their
beneficiaries.
Section 3. The Employer hereby agrees to serve as Trustee under the Plan.
Section 4. This resolution shall take effect immediately upon its adoption.
CITY OF SEWARD,ALASKA
RESOLUTION 2016-027
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 29th
day of March, 2016.
THE CITY OF SEWARD ALASKA
1(3 ,4,9-0.)--1)
can Bardarson, Mayor
AYES: Casagranda, Keil, Squires, Altermatt, McClure, Bardarson
NOES: None
ABSENT: Butts
ABSTAIN: None
ATTEST:
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rms Kir ', CMC
Clerk
(City Seal)
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Agenda Statement
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Meeting Date: March28, 2016 oma;r` 9'�0
To: City Council (14toi
Through: James Hunt, City Manage.A
From: Kristin Erchinger, Finance Director Vie
Agenda Item: Amendment and Restatement of the ICMA-RC Governmental Money
Purchase Pension Plan&Trust Adoption Agreement
BACKGROUND &JUSTIFICATION:
The City of Seward maintains a 401 Plan with the ICMA Retirement Corporation (the
"Administrator")which periodically requires amendment and restatement to incorporate changes to
Internal Revenue Service ("IRS") Regulations.
The Administrator requires the City to execute a restated adoption agreement no later than April 15,
2016,to ensure the plan is updated in accordance with current IRS regulations and avoid the risk of
the Plan losing its qualified Plan status.
This Plan was originally established by the City Council to offer a retirement plan for a former city
manager who had elected not to participate in the Public Employees' Retirement System. The Plan
is different from the City's 457 ICMA-RC Plan,in that it allows the employer to provide employer
contributions, which are not allowed within the deferred compensation 457 Plan. This is the only
City retirement plan other than PERS, which offers the ability of the City to contribute retirement
contributions on behalf of an individual. Maintaining this Plan allows the City flexibility to address
retirement contributions on behalf of employees who are not participants in the PERS Plan,or where
the City requires flexibility outside of the PERS Plan,for its personnel management system to attract
or retain competent personnel.
INTENT:
To amend and restate the ICMA-RC Governmental Money Purchase Pension Plan&Trust Adoption
Agreement to conform with IRS regulation changes.
CONSISTENCY CHECKLIST: Yes No N/A
1. Comprehensive Plan (document source here): X
2. Strategic Plan (document source here): X
3. Other (list): X
FISCAL NOTE:
There is no financial impact of amending and restating the existing Plan document.
Approved by Finance Department: Jz)
ATTORNEY REVIEW: Yes NoX Not Applicable
RECOMMENDATION: '\
City Council approve Resolution 2016-0� authorizing the amendment and restatement of the ICMA
Retirement Corporation Governmental Money Purchase Plan and Trust Document.