HomeMy WebLinkAbout20-12RESOLUTION NO. 20 -12
A RESOLUTION of the City Council of the City of Port Angeles,
Washington, authorizing 401 -A Profit Sharing Plan.
WHEREAS, City employees are required to participate in the State Public Employment
Retirement System (PERS) with the exception of City Managers, who may opt out and have the
equivalent contributions placed into a profit sharing plan.; and
WHEREAS, the establishment of a 401 -A Government Profit Sharing Plan (The Plan)
with Great West Retirement Systems will allow the City Manager to remain enrolled in his/her
current deferred compensation account; and
WHEREAS, in accordance with Rev. Rul. 2006 -43, the City desires that a 401(a)
Government Profit Sharing Plan be administered by Great West Retirement Systems and that the
funds held under such plan be invested in the Plan's designated investment options.
WHEREAS, contributions to the Plan, designated as employee contributions, will be
paid by the City. The City will "pick up" all prospective contributions to the Plan for the City
Manager. The contributions on behalf of the City Manager will be paid by the City in lieu of
contributions to PERS.
WHEREAS, the contributions, although designated as employee contributions, are
being paid by the employer, and the employee does not have the option of choosing to receive the
contributed amounts directly instead of having them paid by the employer to the Plan, and a
participating employee is prohibited from and after the date of the "pick -up to have a cash or
deferred election right (within the meaning of 1.401 (k)- 1(a)(3)) with respect to designated
employee contributions. Participating employees are not permitted to opt out of the "pick -up
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port
Angeles as follows:
Section 1. The City of Port Angeles hereby authorizes a 401 -A government Profit
Sharing plan (the Plan) pursuant to the specific provisions of the Adoption Agreement (copy
attached hereto). The Human Resource Manager is authorized to sign all documents necessary
for this purpose.
The Plan shall be maintained for the exclusive benefit of the City Manager and his/her
beneficiaries; and
Section 2. The City's contributions will begin effective with the establishment of the
Plan.
Section 3. The City hereby agrees to serve as trustee under the Plan and to invest funds
held under the Plan; and
Section 4. The City's Human Resources Manager shall be the coordinator of the Plan;
shall receive necessary reports, notices, etc. from the record keeper; shall cast, on behalf of the
City, any required votes under the Profit Sharing Plan; may delegate any administrative duties
relating to the Plan to appropriate personnel; and
Section 5. Contributions to the Plan, designated as employee contributions, will be
paid by the City. The City will "pick up" all prospective contributions to the Plan for the City
Manager. The contributions on behalf of the City Manager will be paid by the City in lieu of
contributions to PERS. This action applies only prospectively.
Section 6. Contributions, although designated as employee contributions, are being
paid by the employer, and the employee does not have the option of choosing to receive the
contributed amounts directly instead of having them paid by the employer to the Plan, and a
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participating employee is prohibited from and after the date of the "pick -up to have a cash or
deferred election right (within the meaning of 1.401 (k)- 1(a)(3)) with respect to designated
employee contributions. Participating employees are not permitted to opt out of the "pick -up
PASSED by the City Council of the City of Port Angeles at a regular meeting of said
Council held on the 18 day of Sept emt)(2012.
ATTEST:
s akf
J Hurd, City Clerk
APPROVED AS TO FORM:
William E. Bloor, CitrAttorney
G \LEGAL\a ORDINANCES &RESOLUTIONS\RESOLUTIONS 2012\21 CityManagerDeferredComp 09 04 12 wpd
September 18, 2012
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Cherie Kidd) Mayor