HomeMy WebLinkAboutDocumentation_Regular_Tab 07_11/13/2014 VILLAGE CLERK'S OFFICE
AGENDA ITEM TRANSMITTAL FORM ,
Meeting Date: Meeting Type: Regular Ordinance #:
11/13/2014 .. - � .,
Consent Agenda: Yes Resolution #: 30-14 `
Originating Department: Human Resources
AGENDA ITEM TITLE: (Wording form the SUBJECT line of your staff report)
Approval of ICMA's amended 401 a Adoption Agreement
BUDGET / FINANCIAL IMPACT:
Account #: 001-175-522.105 Amount of this item: 44,718.00
Current Budgeted Amount Available: Amount Remaining after item: $0.00
$44, 718.00
Budget Transfer Required: No Appropriate Fund Balance: No
EXECUTIVE SUMMARY OF MAJOR ISSUES: (This is a snap shot description of the agenda item)
In keeping with amendments to Article 29 (Retirement) of the 2013-2016 PBA contract which is also
being submitted for Council approval at tonight's meeting, the Village is seeking to amend the
adoption agreement for its certified police officers' 401 a plan which was originally established with' an _
effective date of 3/1/2013. Changes include amendments to the employer and employee contribufion ,
amounts.
APPROVALS: SIGNATUR : , �`° .
Department Head ;' J • �
Finance Director � : ,
Reviewed for Financial Sufficiency 0 ' �j�
No Financial Impact ❑
Attorney: (for legal sufficiency) See attached
Village Manager:
Submit for Council Discussion: ❑ ��
Approve Item: � _ �
Deny Item: �
SPECIAL INSTRUCTIONS FOR CLERK: (if you wish to have agreements signed, be sure to include the
number of copies you want signed and place "Sign Here" sticker on them)
Form Amended: 10/20/11
Reld, Merlene
From: Keith Davis [keithC�cwd-legal.com]
Sent: Friday, October 31, 2014 2:49 PM
To: Reid, Merlene
Subject: FIN: 401a Adoption Agreement Amendment - Agenda Item
Attachmerrts: 401a Adoption Agreement Nov 2014-Resolution.doc
Merlene:
With the revised resolution, this item is approved for legal sufFiciency.
Keith W. Davis, Esquire
��,L� G�� �ul��; ��
Tel: (561) 586-7116 '
Fag: (561) 586-9611
Email: keith @ cwd-legal.com
� • � � •
Memo
To: Michael R Couzzo, Jr., Village Manager
i �°� '�
From: Merlene Reid, HR Director ����� ° y
Date: October 27, 2014
Re: 401(a) Plan — Amendment Per Article 29 of the PBA Contract
� The PBA accepted the Village's contract proposal with a 12-4 ratificafion vote on
10/9/2014. This contract is on the 11/13/2014 Council Agenda for approvalp
Included in the contract is an increase in the Village's contribution from 0-5%, to
3-8%. The Village will contribute an automatic 3%, and match up to an additional
5%, making a total possible contribution of 8%. $44,718 has been budgeted in
Village contributions for FY2014/15.
The officers' contribution which was inadvertently capped at 5% is being moved to
the maximum allowable pre-tax contribution of 12%.
The Council is being asked to approve attached amended Adoption Agreement
along with the amendments outlined in Resolution 30-14.
RESOLUTION NO. 30-14
A RESOLUTION OF THE VII.LAGE COUNCIL OF THE VII.LAGE OF
TEQUESTA, FLORIDA, AMENDING THE GOVERNMENTAL MONEY
PURCHASE PLAN & TRUST ADOPTION AGREEMENT FOR
CERTI�"IED POLICE DEPARTMENT EMPLOYEES; PROVIDING FOR
SEVERABILITY; PROVIDING AN EFFECTIVE DATE; AND FOR
OTHER PURPOSES.
WHEREAS, the Village Council of the Village of Tequesta established the 401a
Governmental Money Purchase Plan & Trust Adoption Agreement for certified police
department employees with an effective da.te of March 1, 2013; and
WHEREAS, the Village Council has reviewed the current contribution provisions and is
seeking to make changes to the contribution amounts for both the employer (Section VI.IA) and
the employee (Section VI.1B (iii)) in accordance with the terms of the current PBA contract; and
WHEREAS, the Village Council believes that these revisions will be in the best interest
of the Village.
NOW, THEREFORE, BE IT RESOLVED BY THE VII.LAGE COUNCIL OF
THE VII.LAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
SecNon 1 The above recitals are declared to be true and conect and are hereby
incorporated into this Resolution.
Section 2 The Village Council hereby revises the 401a Governmental Money
Purchase Plan & Trust Adoption Agreement for certified police department employees at
Sections VI.lA and VI.1B (iii) by increasing the Village's contribution from 0-5°Io to 3-8°Io, and
by increasing the maximum employee pretax contribution to 12°l0, all as contained in the ICMA
Retirement Corporation Governmental Money Purchase Plan & Trust Adoption Agreement
attached hereto as Exhibit A.
SecNon 3 This Resolution sha11 become effective immediately upon adoption.
ic.n�► ��nrr co�o�►noN
GOVERNMENTAL MONEY PURCHASE PLAN & TRUST
ADOPTION AGREEMENT
PLAN NUMBER 10- ��
The Employer hereby esrablishes a Moaey Purchase Plan and Trust w be known as T� �GE OF TEQUESTA
(the "Plan") in the form of the ICMA Retirement Corporatioa Governmental Money Purchase
Plan and Trusc (MPP 01/01/06}.
This Plan is an amendment and resratement of an egisting defined con�iburion money purchase plan.
� Yes � No
If yes, please specify the name of the defined contriburion money purchase plan which th9s Plan hereby amends and restates:
j, g�pjp� VILLAGE OF TEpUESTA ��
II. The Effecdve Date of the Plan shall be the first day of the Plan Year during which the Employer adopts the Plan,
unless an alcernate Effecdve Date is here specified: nn�cH �, 2o�a (eg., I��Y 1 ,
2006 for the MPP O1/O1/Ob Plan) .
III. Plan Y�r will mean:
� The twelve (12) consecurive month period which coinudes with the limitation year. (See Secdon 5-03(� of the
Plan.)
� The twelve (12) consecutive month period commencing on �70BER 1 . 2013 �d �� �n.� ��f
rv. rro� x�� a� �u � � � ��t � � � 6s). [��]
v Er..YCisn.r�sr �Q,�xTS:
1. 'Ihe following group or groups of Employees are eligible to participate in the Plan:
.�ll Employeec
�111 Full Time Emploqees
Salaried Emplayees
Non union Employees
Management Employees
Public Safety Employees
General Employees
X Other Emploqees (specify describe the group(s) of eligible
emploqees below)
CERTIFlED ROLICE DEPARTMENT EIa�LOYEES
'Ihe group specified must correspond to a group of the same deslgnauon that is defined in the starutes,
ordinances, rules, regulauons, persoanel manuals or other materlal in effect ln the state or localitp of the
Employer. ALso, the eligibiliry requirements for partldparion in the Plan cannot be such that Employees b�ome
Parddpants only in che Plan Year ln which the Employees term.inate employment (i.e., stand alone final pay
P��•
1 Money Purcbase Plan Adopdon Agr�m�at
2. The Employer hereby waives or reduces the requirement of a twelve (12} month Period of Senrice for
partidpation. The required Period of Service s6all be (write N/A if an Employee is eligible to partidpate
upan employment) WA
If this waiver or reducaon is elecced, it shall apply to all Employees within the Covered Employmeat
Classification.
3. A minimum age requirement ls hereby specified for eligibiliry m participate. 'Ihe minimum age
req���•�P�+ is � {not to �ceed age 21. Write N/A if no m9nimum age ls declared.)
YL CONTRffiUTION PROVYSIONS
1. The Employer shall contclb�e as followe: (Choose all thac apply, but at least one of Options A, B or C. If
Oprion A is not selected, Employer must pick up Pazticipant Conmlbutions under Option B or Option C.)
F'�zed Employer Co�rib�lons With or Witho� Mandatory Pardcipant Contrib�lons. (If Opcion B
or C is cho�n, please wmplete secdon D.)
� A. Em�loyer Con�ibutions. The Empla�er shall coatrlbute on behalf of each Partidpant
��% of Earnings or $ wA for the Plan Year (subject m the limitadons of Ardcle Y of
the Plan).
Mandator� Participant Con�iburions
� are required � are not required
m be eligible for t6is Employer Conaiburion.
� B. Mandatory Parrici�nt Contributions for Plan Pazdcination. A Participant is required to
contrlbute (subject m the limitarions ofArdcle Y of t6e Plan)
(1) % of Earn� ,
(ii) $ , or
(iii) a whole gercentage of Eamings between the range of o� w �2��0 ('msert sange of
percentagrs 6etween 0� and 20% (e.g., 3%, 6%> or 20%; 5% to 7%)), as designated by t6e
Employ� in accordaace wirh guidelines and procedures established by rhe EmPloqer
for the Plan Year as a condition of participation in the Alan. A Participant shall not have t6e
rlght to diswnriaue or vary the rate of such wnuiburions after becoIIiing a Plan Pamcipant.
'Ihe Employer hereby elects to ° pick up" the Mandatory Pazddpant Contdbutions'(pick up
ls ret�uired if neither Oprion A nor Option C ls seletted).
I� Yes � No [621]
� C. Mandatory Partid�nnt Co�ributions for this Portion of the Plan. Each Employee eliglble
to participaoe in the Plan shall be given the oPErortunit� to inevocably elect m P�aP�
in the Mandamry Participant Conuibudon gortion of the Plan bp electing to contribute
(insert runge ofpercenrages between 0% and 20% (e.g., 3�, 6%, or 20%;
S% to 7%)) of the Employee's Farn�� to the Plan for each Plan Year (subjeit m the limitadons
of Arcicle V of the Plan).
' Neftlier an IRS adrriwry leater nor a deurmirration lettrr is+r�ed m an adnPtinSEmPloyer fs a ru!!ng by afie Inaernu! Reu�rerse Seritce that
P�rticipant contsibueions tbatase picked up by tbe Employei an not includab/e in the Partrcipasrd'sgross inavme for federal income taxpurpo�'.
Fick-up contsibut�ons are not mandated w receiae psiv�te letter rulingx haweUer, ffan °doPtinS employer misha to retefae a ruli� on pick rq�
comribr�tions �iey npal' re4rust one fn auordance mitli Reuenue Proadure 2011-4 (ot srsb�qr�e�uguldance).
Money Purchase Plan Adoption Agreement 2
A Parcicipant shall not have che righc co disconrinue or vary rhe rate of such coatributions afcer
beco IDlIIg a Participant in this porcion of the Plan.
The Employer hereby elects to "pick up the Mandatory Partidpant Contributions (pick up is
requlred if neitk�er Option A nor Opdon B is selected)? [b2� ]
� Yes � No
D. Election VPmdow (Complete if Option B or Option C is selecte�:
Newly ellgible Employ+ees shall be provided an elecdon window of � days (no more than
60 calendar days) fiom the date of lnirial ellgibili�' d�^� which they may make the elezdon to
partidpate in the Mandatory Parri«pant Contribution pordon of the Plan. Parcicipazion in the
Mandatory Partic,ipant Contriburion portion of the Plan shall begin the first of the month following
the end of the elecdan window
An Employee's election is irrevocable and shall rPmain in fotce until the F.mploy� terminaiea
employment or ceases m be eligible co parcicipate in the Plan. In che event of re-employment to an
eligible position, the Em.ployee's original election will resume. In no eveat does the Employee have
the option of receiving the pick up conuiburion amount directly.
2. The Employe� may aJso elect to contribute as follows:
� A Fixed F.m�lo�•er Match of Voluntar� Partiuoant Contributions. The Employer shall wntribute on
behalf of each Participant% of E.ar��c for the Plan Year (subject to the limitations of Article
V of the Plan) for each Plan Year t6at such Participant has contributed % of Earn�os or
$ . Under this option, there is a single, fixed rate of Employer wntribudons, but
a Participant may decline to make the required Participant contributions in airy Plan Yeaz, in which
C'JC no Employer conu�ibutioa will be made on the Participant's behalf in tLat Plan Yeaz.
� B. V�.riable Em�lq� Match of VoluntarTPaztici�ant Contriburions. The Employer shall conuibute on
behalf of each Participant an amount determ.ined as follows (subject to the limitations of 1�rticle V of
the Plan):
% of the Voluntaiy Participant Contributions made by the Pazricipant for the Plan Year (not
iacludiag Parricipant conu�ibudons esreed'�; % of F.ar�vs or $ );
PLUS % of the contributions made by the Participant for the Plan Year in egcess of those
included in the above pazagraph (but not including Voluntary Pazticipant Contriburions esceeding in
the aggregate % of Earaings or $ ).
Emplayer Matching Conmibutions on bebalf of a Pazticipant for a Plan Y�r shall not egceed
$ or % of Far��s, whichever is _ more or _ less.
3. Each Paracipant may make a voluntary (���R after tag wntribution, subject to the limitations of
Section 4.05 and Article V of the Plan.
� Yes � No
4. Employer wn�ibutions for a Plan Year shall be contributed to the Trust in accordance with the following
payment schedule (no later than the 15th day of the tenth calendar manth follawing the end of the calendar
year or fiscal year (as applicable depending on the basis on which the Employer keeps its books) with or within
which the particular Limitatian yeaz ends, or in accordance with applicable law):
BI-VYffIdY
a See footnou 1 on tbe preuious page.
3 A�o�q Purchase Plan Adopdon Agr�t
5. Participant contrlbuuons for a Plaa Year shall be contdbuted to the Trust in accordance with the following
payment schedule (no later than the 15th day of the tenth calendar month following the end of the calendar year
or fiscal year {as applicable depending on che basis on which the Employer keeps its books) with or within which
the pardculaz Limitarion year ends, or in accordance with applicable law):
BI-WEE{aY
VIL EARNINGS
Farnings, as defined under Secaon 2.09 of che Plaa, shall include:
(a) Overtime
� Yes � No
(b) Bonuses
� Yes � No
(c) Other Pay (spedfically describe any other types of pay to be included below)
VIII. 'Ihe Employet wlll permit rollover contrlbutions in accordance with Secl�lon 4.11 of the Plan.
� Yes � No
IIG LIMITATION ON ALLOCATIONS
If t6e Employer maincains or ever maintained another qualified plan in which any Pazticipant in thLs Plan is (or was) a
participant or could possibly become a participant, the Employer hereby agrees to Limit contributions to all such plans
as provided herein, if aecessary in order to avoid egcess contributions (as described in Sectlons 5.02 of the Plan).
1. If the Participant ls covered under another c]uaLiSed deSned cont[l�ution P�an maintained I� tl�e EmFloyer the
provisions of Sectioa 5.02(a} through (� of the Plan will apply ualess another method has be�n indicated below
� Orher Method. (Provide the method under which the plans wlll lim.it mtal Annual Additions to the
Maaimum Permissible A.mount, and will properly reduce any egcess amounts, in a manner that precludes
Employer discrerion.)
2. The limitation year is the following 12 consecutive month �rlod:
Money Purchase Plan Adopdon Agreement 4
x vESrrx� pROVYSYONs
The Employer hereby specifies the following vesting schedule, subject to (1) the minimum vesting r� and
(2) the concunence of the Plan Adm;�;�tor. (For the blanks below, enter the applicable percent — from 0 to 100
(with no entry after the year in which 100% is entered), in ascending order.)
Pcriod of Sa vice Pectent
C°—�let /��
7.ero �k
One Z� %
Two � %
Three � %
Four � %
Five �oo %
Sig %
Seven %
Eight %
Nine %
Ten %
XY. Loans aze permitted under the Pla.n, as provided in Amcle XIII of the Plan:
� Yes � No [�51]
XII.
1. In-service distributions are permitted under the Plan after a participant arra��� (select one of the below
apuons): [646:8]
� Normal Retirement Age
L7 Age 7o�z
� Not permitted, at acry age
2. Ta%free disrriburions of up m$3 ,000 for the payment of qualifying �����►+ce premiums for eligible
retired public safety officers are aeailable under the Plan.
� Yes � No (Default) [�i:3]
XIII. In-service distribudons of the Rollover Account aze perm.itted under the Plan as provided in Secdon 9.07.
��:n
� Yes � No (Default)
xiv srousai, rRO�criorr
The Plan will provide the follovving level of spousal protaction (select one):
A. � Participant Directed Elecdon. The normal form of payment of benefics under the Plan is a lump sum. ��'
The Partidpant can name any person(s) as the Beneficiary of the Plan, wrth ao spousal consent required.
B. � Beneficiary Spousal Consent Election (Aracle XII). The normal foffi of payment of benefits under [�1:6]
the Plan is a lump sum. Upon death, the surviving spouse is the Beneficiary, unless he or she consents to
the Pazticipant's naming another Benefidary. (This is the default provision under the Plan if no selecdon
Is made.)
C. � Q JSA Electlon (Article XVII). 'Ihe normal form of pa�ment of benefits uncler the Plan is a 50% qualified [�{�B]
joint and survivor annuity with the spouse (or life annuiry, if single). In the event of the Parddpant's
death prior to commencing payments, the spouse will rece9ve an annuity for his or �r liferime. [�b:6]
5 Moneq Purchase Plan Adopdon Agr�ment
XV. FINAL PAY CONTRIBU ITONS
The Plan will provide for Final Pay Conuibuuons if either 1 or 2 below is selected.
Final Pay shall be defined as (select one):
A. � Accrued unpaid vacation
B. � Accrued unpaid sick leave
C. � Accrued unpaid vacation and sick l�ve
D. � Other (insert definition of final pay):
that would otherwise be payable to the Emplayee in cash upon terminarion.
1. � Employer Final Pay Coatribatioa. The Employer shall contribute on behalf of each Partidpant
% of Final Pay to the Plan (subject to the limitaaons of Article V of the Plan).
2. � Employee De�igmated Final Pay Contrib�ioa. F�ch Emplayee eligible to participate in the Plan shall be
given the opgominiry at earollment to irrevocably elect to con�ibute %(insert figed percentage of final
pay to be wn�ibute� or up to %(inserc magimum percentage of final pay to be conaibuted) of
F'inal Pay w the Plan {subject to the limitaaons of Article V of the Plan).
Once elected, an Employee's election shall remain in force and may not be rev9sed or revoked. If the employer
eleccs to "pick up" these amounts, in no event dces the Employee have rhe option of receiving the pick-up
contribution amount d'uectly.
The Employer hereby elects to "pick up" the Emplayee Designazed F9na1 Pay Contribuaon thereby treating
such con�ibucions as Emplayer-made wntriburions for fEderal inwme cag purposes.
� Y� � No (621 ]
XVL ACCRUED LEAVE CONTRIBUTIONS
The Plan will provide for accrued unpaid leave wn�iburions if either 1 or 2 is selected below.
Acaved I.�ve s6all be defined av (select one):
A. � Accrued unpaid vuarion
B. � Accrued unpaid sick leave
C. � Accrued unpaid vacarion and sick leave
D. � Orher (in�rt definiuon of final pay.
that would otherwise be payable to the Employee in cash.
1. � F�ployer Accra� Ixave Coatdb�ion. The Employer shall connibute as follows (choose one of the
follawing oprions):
� For each Plan Year, the Employer shall wn�ibute on behalf of each Eligible Parricipant the unused
Accrued I.eave in egcess of (insert number of hours/dayslvreeks) to the Plan (subject to the
limitadons of Article V of the Plan).
� For each Plan Year, the Employer shall wntribute on be6alf of each F_ligible Pazticipant % of
unused Accrued Leave to the Plan (subject to the limitations of Aracle V of the Plan).
Money Purehase Plan Adop�lon Agreement 6
� 2. Fmployee n�atect Accrued L.eave contribndon.
Each eligible Participant shall be given the opportuniry at enrollment to irrevocably elect to canuibute
%(insert fiaed �rcentage of accrued unpaid leave to be wntributed) or up to %(lnsert
maximum percentage of accrued unpaid leave to be contributed) ofAccrued Leave to the Plan (subject m the
limitations af Article V of the Plan).
Once elected, an Employee's election shall remain in force and may not be revlsed or revoked. If the employer
elects to "pick up° these amounrs, in no event does the Employee have the oprion of receiving the plck-up
cantribution amount direcdy.
The Employer hereby elects to "pick up" the Employee Designazed Final Pay Contribution therebp ueadng
such contriburions as Employer-made contribarions for federal income tax purpases.
� Yes � No [621 ]
In order to allow for F'uial Pay Conulbutions and/or Accrued Leave Contribudona, as defined in sections XV and XVI
above, the Plan must also include additional sources of ongoing conulbutions, such as Figed Employer Contdbutions
or Mandatory Participant Conuiburions. In accordance with IRS Guidance, ICNLA-RC will not proce�s Final �ay
Conuiburion or Accrued Leave Contribuuon Features as part of a"Stand Alone" Final Pay Plan.
XVII. `Ihe Empbyer herebp attests that h Is a unit of state or local gove R+mP�t or an agenry or instrumentality of one or more
units of state or local government.
XVIII. 'Ihe Plan Ar� r � � i�tor hereby agrees m inform the Employer of anp a.mendments to the Plan made pn r.n,a r,r m
Secrion 14.05 of the Plan or of the discontinuance or abandonment of the Plan.
XIX. `Ihe Employer hereby appoints che ICMA Retirement Corporarion as the Plan Admini.�m p�?rs��t to the terms
and condiuons of the ICMA RETIREMENT CORPORATION GOVERNMENTAL MONEY PURCHASE
PLAN & TRUST:
'Ihe Employer hereby agrees to the pravisions of the Plan and Trust.
XX. 'Ihe Employer herebp acknowledges it understands that failure to properly fill out this Adoprion Agreement may result
in disqualification of the Plan.
7�Q. An adopting Emplayer may rel� on an advisory letter issued by the Intemal Revenue Service as evidence that the
Flan is qualified under section 401 of the Internal Revenue Code to the estent provided in applica6le IRS revenue
procedures and other o�cial guiu�,��•
In Wime� Whereof, the Employer hereby causes this Agreement to be ezecuted on this 13 TH day of
wovEnns� , Z� 13
EAqPLOYER ICMA R.E'TIREMENT CORPORATION
777 North Capitol St., NE
Washington, DC 2ao02-4240
202-962-sd96
By: By:
Prinr Nam� MICHAEL COUaO JR Princ Name:
Title: VIU.AGE MANAGER r ��
�: .��
� Mone� rurchase Plaa.�daPdan Agr�ment