Loading...
HomeMy WebLinkAboutRes2016-042Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2016-042 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 AND RESCINDING 2016-027 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; and WHEREAS, the former Resolution 2016-027 was accompanied by a Plan document which was returned to the City with suggested modifications by the Administrator and the administration desires Council's acceptance of the modified Plan document. 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. CITY OF SEWARD, ALASKA RESOLUTION 2016-042 Section 3. The Employer hereby agrees to serve as Trustee under the Plan. Section 4. Resolution 2016-027 approved by the Seward City Council on March 29, 2016 is hereby rescinded. Section 5. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 11 cn day of July, 2016. THE CITY OF SEWARD ALASKA an Bardarson, Mayor AYES: Keil, Butts, Squires, McClure, Altermatt, Bardarson NOES: Casagranda ABSENT: None ABSTAIN: None ATTEST: (City Seal) "rise..."91 lb •••�soOF SEh'q,�•. G� ... allo� • .•• SEALOF ; � �� � re• �l 1 1 Agenda Statement Meeting Date: July 11, 2016 To: City Council Through: James Hunt, City Manages; From: Kristin Erchinger, Finance Director WI/ 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. Staff forwarded a proposed Plan Amendment to the City Council which was approved on March 29, 2016, to include an Addendum. The proposed Amendment was recommended by the ICMA field office representative but when forwarded to the ICMA Corporate Plan division, was rejected for inconsistency. In particular, it was suggested that the proposed Addendum to the Plan Amendment be eliminated and that the Plan document be revised to allow for the inclusion of "management employees" to ensure proper coverage of the city manager. The attached Plan Amendment includes the changes recommended to the City by the ICMA field office representative. The Administrator required 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. Council's approval of the initial Plan revision met the required deadline, and ICMA is extended the deadline to enable us to make this modification. 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 (documew source here).- X 3. Other (lis/1): X FISCAL NOTE: There is no financial impact of amendand restating theexisting Plan document. Approveing d by Finance Department: — ATTORNEY REVIEW: Yes-- No X— Not Applicable RECOMMENDATION: Coll City Council approve Resolution 2016- —authorizing the amendment and restatement of the lCMA Retirement Corporation Govermnental Money Purchase Plan and "frust Document.