05-0124_ICMA RETIREMENT CORPORATION_Govt Money Purchase Plan & Trust Adoption AgrICMA RETIREMENT CORPORATION
GOVERNMENTAL MONEY PURCHASE PLAN & TRUST
ADOPTION AGREEMENT
Account Number 10-
sm
The Employer hereby establishes a Money Purchase Plan and Trust to be known as (the "Plan") in the
form of the ICMA Retirement Corporation Governmental Money Purchase Plan and Trust. The Plan
shall be known as:
THE CITY OF SAN JUAN CAPISTRANO SUPPLEMENTAL RETIREMENT PLAN
This Plan is an amendment and restatement of an existing defined contribution money purchase plan.
❑ Yes 4 No
If yes, please specify the name of the defined contribution money purchase plan which this Plan
hereby amends and restates:
[906]
I. Employer Name: CITY OF SAN JUAN CAPISTRANO [902]
II. The Effective Date of the Plan shall be the first day of the Plan Year during which the
Employer adopts the Plan, unless an alternate Effective Date is hereby specified:
III. PlanYear will mean:
❑ The twelve (12) consecutive month period which coincides with the limita-
tion year. (See Section '5-.N {t j of the Plan.) (803]
S.03 (g)
❑ The twelve (12) consecutive month period commencing on
1-1-2005 and each anniversary thereafter. [803]
IV. Normal Retirement Age (not to exceed age 65) shall be age SO [288]
V. ELIGIBILITY REQUIREMENTS:
1. The following group(s) of Employees are eligible to participate in the Plan:
X All Employees
All Full -Time Employees
Salaried Employees
Non-union Employees
Management Employees
Public Safety Employees
General Employees
Other (specify below}:
MPP Adoption Agreement 4/30/2000
The group specified must correspond to a group of the same designation that is defined
in the statutes, ordinances, rules, regulations, personnel manuals or other material in
effect in the state or locality of the Employer.
2. The Employer hereby waives or reduces the requirement of a twelve (12) month Period
of Service for participation. The required Period of Service shall be N/A
write N/A if an Employee is eligible to participate upon employment). [344]
If this waiver or reduction is elected, it shall apply to all Employees within the Covered
Employment Classification.
3. A minimum age requirement is hereby specified for eligibility to participate. The
minimum age requirement is N/A (not to exceed age 21). Write N/A if no mini- [341]
mum age is declared.
VI. CONTRIBUTION PROVISIONS
The Employer shall contribute as follows (choose one): Superseded by Attachment 14o.1
❑ Fixed Employer Contributions With Or Without Mandatory
Participant Contributions.
The Employer shall contribute on behalf of each Participant % of
earnings or $ for the P1anYear (subject to the limitations
of Article V of the Plan). Each Participant is required to contribute
% of earnings or $ for the P1anYear as a condition
of participation in the Plan. (Write "0" if no contribution is required.)
If Participant Contributions are required under this option, a Participant
shall not have the right to discontinue or vary the rate of such contribu-
tions after becoming a Plan Participant.
The Employer hereby elects to "pick up" the Mandatory/Required
Participant Contribution.
❑ Yes ❑ No (621]
The pick-up provision specifies that the contribution is treated, for
federal income tax purposes, as though it is made by the employer. The
pick-up provision allows the employee to defer taxes on the employee
mandatory contribution. The actual result is the same as if the contribu-
tion were a reduction in that employee's salary by the amount of the
contribution. Picked up contributions are NOT exempt from Social
Security rax
[Note to Employer: A determination letter issued to an adopting Em-
ployer is not a ruling by the Internal Revenue Service that Participant
contributions that are picked up by the Employer are not includable in
the Participant's gross income for federal income tax purposes. The
Employer may seek such a ruling.
MPP Adoption Agreement 4/30/2000
[Picked up contributions are excludable from the Participant's gross
income under section 414(h)(2) of the Internal Revenue Code of 1986
only if they meet the requirements of Rev. Rul. 81-35, 1981-1 C.B. 255.
Those requirements are (1) that the Employer must specify that the
contributions, although designated as employee contributions, are being
paid by the Employer in lieu of contributions by the employee; and (2)
the employee must not have the option of receiving the contributed
amounts directly instead of having them paid by the Employer to the
plan.]
❑ Fixed Employer Match of Participant Contributions.
The Employer shall contribute on behalf of each Participant % of
Earnings for the P1anYear (subject to the limitations of Article V of the
Plan) for each P1anYear that such Participant has contributed %
of Earnings or $ . Under this option, there is a single, fixed rate
of Employer contributions, but a Participant may decline to snake the
required Participant contributions in any P1anYear, in which case no
Employer contribution will be made on the Participant's behalf in that
Plan Year.
❑ Variable Employer Match Of Participant Contributions.
The Employer shall contribute on behalf of each Participant an amount
determined as follows (subject to the limitations of Article V of the
Plan):
of the contributions made by the Participant for the Plan
Year (not including Participant contributions exceeding % of
Earnings or $ );
PLUS % of the contributions made by the Participant for the
P1anYear in excess of those included in the above paragraph (but not
including Participant contributions exceeding in the aggregate %
of Earnings or $ ).
Employer Contributions on behalf of a Participant for a Plan Year shall
not exceed $ or % of Earnings, whichever is
more or less.
2 Each Participant may make a voluntary (unmatched), after-tax contribution, subject to
the limitations of Section 4.05 and Article V of the Plan.
❑ Yes A No
MPP Adoption Agreement 4/30/2000
VII.
VIII.
3. Employer contributions and Participant contributions shall be contributed to the Trust
in accordance with the following payment schedule: (please circle one choice) [611]
0 Bi-Weekl
3 Bi -Monthly
6 Bi -Quarterly
9 Bi -Annually
EARNINGS
1 Weekly
4 Monthly
7 Quarterly
10 Annually
2 Semi -Weekly
5 Semi -Monthly
8 Semi -Quarterly
11 Semi -Annually
Earnings, as defined under Section 2.09 of the Plan, shall include:
(a)
Overtime
1$I
Yes
❑
No
(b)
Bonuses
Yes
❑
No
LIMITATION ON ALLOCATIONS
If the Employer maintains or ever maintained another qualified plan in which any Participant in
this 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 necessary in order to avoid
excess contributions (as described in Sections 5.02 and 5.03 of the Plan).
If the Participant is covered under another qualified defined contribution plan main-
tained by the Employer, the provisions of Section 5.02(a) through (0 of the Plan will
apply unless another method has been indicated below.
❑ Other Method. (Provide the method under which the plans will limit
total Annual Additions to the Maximum Permissible Amount, and will
properly reduce any excess amounts, in a manner that precludes Em-
ployer discretion.)
2. If the Participant is or has ever been a participant in a defined benefit plan maintained
by the Employer, and if the limitation in Section 5.03 of the Plan would be exceeded,
then the Participant's Projected Annual Benefit under the defined benefit plan shall be
reduced in accordance with the terms thereof to the extent necessary to satisfy such
limitation. If such plan does not provide for such reduction, or if the limitation is still
exceeded after the reduction, annual additions shall be reduced to the extent necessary
in the manner described in Sections 5.02 and 5.02. The methods of avoiding the limita-
tion described in this paragraph will not apply if the Employer indicates another method
below.
MPP Adoption Agaement 4/30/2000
I�
go
XI.
❑ Other Method. (Note to Employer: Provide below language which
will satisfy the 1.0 limitation of section 415(e) of the Code. Such
language must preclude Employer discretion. See section 1.415-1 of
the Regulations for guidance.)
3. The limitation year is the following 12 -consecutive month period:
January 1 - December 31
VESTING PROVISIONS
The Employer hereby specifies the following vesting schedule, subject to (1) the minimum
vesting requirements as noted and (2) the concurrence of the Plan Administrator.
Years of
Service
Percent
Completed
Vesting
Zero
100 OX
One
%
Two
%
Three
%
Four
%
Five
%
Six
%
Seven
%
Eight
%
Nine
%
Ten
%
Loans are permitted under the Plan, as provided in Article XIII:
❑ Yes
The Employer hereby attests that it is a unit of state or local government or an agency or
instrumentality of one or more units of state or local government.
XII. The Plan Administrator hereby agrees to inform the Employer of any amendments to the
Plan made pursuant to Section 14.05 of the Plan or of the discontinuance or abandonment
of the Plan.
XIII. The Employer hereby appoints the ICMA Retirement Corporation as the Plan Administra-
tor pursuant to the terms and conditions of the ICMA RETIREMENT CORPORA-
TION GOVERNMENTAL MONEY PURCHASE PLAN &TRUST.
The Employer hereby agrees to the provisions of the Plan and Trust.
[751]
MPP Adoption Agreement 4/30/2000 5
XIV. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption
Agreement may result in disqualification of the Plan.
Xv. An adopting Employer may not rely on a determination letter issued by the National or District Office
of the Internal Revenue Service as evidence that the Plan is qualified under Section 401 of the Inter-
nal Revenue Code. In order to obtain reliance with respect to plan qualification, the Employer must
apply to the appropriate key district office for a determination letter. .y j}�
In Witness Whereof, the Employer hereby causes this Agreement to be executed on thisc,' day of
200_.
EIvl F �D
By:
Title:
Attest:
ACCEPTED: ICMA RETIREMENT CORPORATION
u �`j'j4
Tide: Corporate Secretary
Attest:
MPP Adoption Agreement 4/30/2000
ATTACHMENT NO. 1 TO THE CITY OF SAN JUAN CAPISTRANO
GOVERNMENTAL MONEY PURCHASE PLAN AND
TRUST ADOPTION AGREEMENT
Section VI: Contribution Provisions.
1.
A. The Employer shall contribute, on behalf of each Participant,
0% of Earnings or $0.00 for the Plan Year (subject to the limitations of Article V
of the Plan). Mandatory Participant Contributions are not required to be eligible
for this Employer Contribution.
B. At such time as Employer implements Employer
contributions as part of its Program, each Employee eligible to participate in the
Plan shall be given the opportunity to irrevocably elect to participate in the
Mandatory Participant Contribution portion of the Plan by electing to contribute
such fixed dollar amounts or percentage of the Employee's Earnings to the Plan
for each Plan Year (subject to the limitations of Article V of the Plan), as specified
in the Resolution adopting an amendment to the Plan. The Employer shall be
deemed to "pick up" this contribution in accordance with Internal Revenue Code
Section 414(h)(2). These contributions shall be accounted for in the Participant
Contribution Account, and shall be nonforfeitable by the Participant at all times.
At such time as Employer implements Employer
contributions as part of its Program, in an amount greater than as set forth in
Paragraph A above, existing Participants and newly eligible Employees shall be
provided an election window of sixty (60) days from the date of initial eligibility
during which they may make the election to participate in the Mandatory
Participant Contribution portion of the Plan. Participation in the Mandatory
Participant Contribution portion of the Plan shall begin the first of the month
following the end of the election window.
If the Employee does not make an election in the initial year
of eligibility, the election to participate in the Mandatory Participant Contribution
portion of the Plan may be made in a later year. If a later election is allowed, an
annual election window of sixty (60) days shall be provided during which the
election may be made. The election window shall run from November 1 to
December 31. Participation in the Mandatory Participant Contribution portion of
the Plan shall begin the first of the year following the year of the election.
An Employee's election is irrevocable and shall remain in
force until the Employee terminates employment or ceases to be eligible to
participate in the Plan. In the event of re-employment to an eligible position, the
WS&S - TLW:pj:#198870:01 /12/05 - CLEAN
Employee's original election will resume. In no event does the Employee have
the option of receiving the pick-up contribution amount directly.
2. Employer Final Pay Contribution.
The Employer shall contribute, on behalf of each Participant up to
100% of Final Pay to the Plan (subject to the limitations of Article V of the Plan
for the year of termination).
Final pay shall be defined as the amount payable as the Retiring
Employee Recognition Program that would otherwise be payable to the
Employee upon termination.
These contributions shall be accounted for in the Employer
Contribution Account and shall be subject to vesting as required in Section X of
the Adoption Agreement.
3. Fixed Annual Employee Contributions.
( ) A. Pursuant to Section 4.03 of the Plan, each employee
eligible to participate in the Plan, shall be given the opportunity to
irrevocably elect to participate in the Participant Contribution portion
of the Plan by electing to contribute $25.00, $30.00, $35.00,
$40.00, $45.00, $50.00, $100.00, $150.00, $200.00, or $250.00 of
the Employee's Earnings per pay period to the Plan for each Plan
Year (subject to the limitations of Article V of the Plan). The
Employer shall be deemed to "pick up" this contribution in
accordance with Internal Revenue Code Section 4114(h)(2).
These contributions shall be accounted for in the Participant
Contribution Account, and shall be nonforfeitable by the Participant
at all times.
( ) B. Final Pay. Pursuant to Section 4.03 of the Plan,
each Employee eligible to participate in the Plan shall be given the
opportunity to irrevocably elect to contribute 0% of his or her Final
Pay to the Plan (subject to the limitations of Article V of the Plan).
Final Pay shall be defined as
N/A that would otherwise
be payable to the Employee upon termination. The Employee
would be deemed to "pick up" this contribution in accordance with
Internal Revenue Code Section 414(h)(2). These contributions
shall be accounted for in the Participant Contribution Account, and
shall be nonforfeitable by the Participant at all times.
An annual election window of sixty (60) days shall be provided
during which the election may be made. The election window shall
run from January 1 to March 1. The election may be made no later
WSBS-TLW:pj:#198870:01/12105-CLEAN 9
than the election window in the year prior to the year of the
Employee's termination. The contributions shall be made upon the
Employee's termination from employment of the Employer.
Once elected, an Employee's election shall remain in force and
may not be revised or revoked. In the event of re-employment to
an eligible position, the Employee shall be entitled to make a new
election under this Section. In no event does the Employee have
the option of receiving the pick-up contribution amount directly.
C.
Amount Eaual to Value. For the final Plan Year, wherein the
Participant separates from employment, and notwithstanding
Section 4.03 of the Plan, each Employee eligible to participate in
the Plan shall be given the opportunity to irrevocably elect to
contribute up to 100°x6 of Participant's Accrued Leave Pay to the
Plan (subject to the limitations of Article V of the Plan). Accrued
Leave shall be contributed to the Plan according to the following
schedule: 100% from the last pay period, upon separation from
employment.
Eligible Participant is defined as:
xx All Participants;
Participants within _ [insert number) years of
Normal Retirement Age; or
Other: [defined
class of Participants].
Accrued Leave, for purposes of this Section VI. 3. C., shall be
defined as the Participant's: (a) Accrued and Unused Vacation Pay;
and (b) Accrued and Unused Compensatory Time, each as defined
in the Employer's Personnel Rules and Regulations.
The Employer shall be deemed to "pick up" this contribution in
accordance with Internal Revenue Code Section 414(h)(2). These
contributions shall be accounted for in the Participant Contribution
Account, and shall be nonforleitable by the Participant at all times.
Newly eligible employees shall be provided an election window of
sixty (60) days from the date of initial eligibility during which they
may make the election to participate in the Accrued Leave Pay
portion of the Plan. Participation in the Accrued Leave Pay portion
of the Plan shall begin no earlier than the first of the month
following the end of the election window.
WSBS-TLW:pj:#198870:01/12/05-CLEAN 'A
If the Employee does not make an election in the initial year of
eligibility, the election to participate in the Participant's Accrued
Leave Pay portion of the Plan may be made in a later year. If a
later election is allowed by Employer, an annual election window of
sixty (60) days shall be provided during which the election may be
made. The election window shall run from November 1 to
December 31. Participation in the Participant's Accrued Leave Pay
portion of the Plan shall begin in the year following the year of the
election.
An Employee's election is irrevocable and shall remain in force until
the Employee terminates employment or ceases to be eligible to
participate in the Plan. In the event of re-employment to an eligible
position, the Employee's original election will resume. In no event
does the Employee have the option of receiving the pick-up
contribution amount directly.
Picked up contributions are excludable from the Participant's gross income under
Section 414(h)(2) of the Internal Revenue Code of 1986 only if they meet the
requirements of Rev. Ruls. 81-35 and 81-36, 1981-1 C.B. 255, and 87-10,
1987-1 C.B. 136. Those requirements are (1) that the Employer must specify
that the contributions, although designated as Employee contributions, are being
paid by the Employer in lieu of contributions by the Employee; (2) the Employee
must not have the option of receiving the contributed amounts directly instead of
having them paid by the Employer to the Plan; and (3) the required specification
of designated Employee contributions must be completed before the period to
which such contributions relate.]
4. Participant's Voluntary After Tax Contributions. Each
Participant may make a voluntary (unmatched), after-tax contribution, subject to
the limitations of Section 4.05 and Article V of the Plan.
Yes xx No
5. Contribution Payment Schedule. Employer contributions and
Participant contributions shall be contributed to the Trust in accordance with the
following payment schedule: 100% from the last pay period, upon separation
from employment for final pay and accrued leave (per Section VI.3.C); and the
amount selected by Participant per Section 2.A. above per each period.
WSBS-TLW:pj:#196870:01/12/05-CLEAN d
6. Employer Accrued Leave Contribution.
The Employer shall contribute as follows (choose one of the
following options):
(x ) For the final Plan Year wherein the Participant separates
from employment Employer shall contribute, on behalf of each Eligible
Participant, the unused Accrued Sick Leave, Administrative Leave and
Performance Hours Pay in the amount as allowed for in the Employer's
Personnel Rules and Regulations, and equal to the value of the total
balance on the books of record of Employer, to the Plan (subject to the
limitations of Article V of the Plan).
( ) For each Plan Year, the Employer shall contribute, on behalf
of each Eligible Participant, 0% of unused Accrued Leave to the Plan
(subject to the limitations of Article V of the Plan).
xx All Participants;
Participants within _ [insert number) years of
Normal Retirement Age; or
Other [define
class of Participants].
Accrued Leave, for purposes of this Section VI.6, shall be defined as
Accrued and Unused Sick Leave Pay, Performance Hours Pay, and
Administrative Leave, each as defined in the Employer's Personnel Rules
and Regulations.
These contributions shall be accounted for in the Employer Contribution
Account and shall be subject to vesting as required in Section X of the Adoption
Agreement.
WS&S-TLW:pJ-.#198870:01/12/05-CLEAN F