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HomeMy WebLinkAboutRESOLUTIONS - 01011981 - 1981-325 Board of Supervisors of Contra Costa County, California As Governing Body of the County and of All the Other Public Entities of which it is the Governing Body In the matter of establishing ) a Deferred Compensation Plan ) pursuant to California } RESOLUTION NO. 81/325 Government Code §53213 and ) Section 456 of the Internal } Revenue Code. ) The Contra Costa County Board of Supervisors in all of its capacities as the governing body of this County and of the Dis- tricts and other Public Agencies of which it is the governing body, RESOLVES: This Board, acting in accordance with California Government Code Section 53213 and Section 457 of the Internal Revenue Code (26 USC 5457) , hereby establishes a deferred compensation plan as provided in the "Contra Costa County Deferred Compensation Plan" , attached hereto, which is incorporated herein by reference. PASSED by the Board on March 24 , 1981, by the following vote: AYES: Supervisors Fandent Schroder, McPeak, Torlakson, Powers , NOES: Supervisors None ABSENT: Supervisors None CERTIFIED COPY I certify that this is a full:. true & correct copy of the original document whid-i is On file in 1-office ATTEST;JR.OI SSON, County Clerk & ex-offxlc Cler4 of sato Bcard of Supervisors by De�rty�fgiCrk. on AWW:q cc: All Department Heads, All Employee Organizations RESOLUTION NO. 81/325 March 1.3, 1981 CONTRA COSTA COUNTY DEFERRED COMPENSATION PLAN SECTION 1. PURPOSE. This Deferred Compensation Plan is established as a part of the compensation program of Contra Costa County, to encourage the acceptance and retention of offices and employments with the County by permitting County employees to defer a portion of their compensation in order to obtain certain income tax benefits, and to provide for certain retire- ment, disability and death benefits, as permitted by Section 457 of the Internal Revenue Code (26 USC 5457) , and California Government Cade Section 53213. SECTION 2. DEFINITIONS., 2.1 "County" mans the County of Contra Costa or any other govern- mental entity of which the Contra Costa County Board of Supervisors is the governing body. 2.2 "Employee" means any officer, permanent full time, permanent part time, or project employee of the County# excluding independent contractors, whose compensation is fixed by the Board of Supervisors or pursuant to statute and who is paid by the County. 2. 3 "Participant" means any employee who enters into a Partici- pation Agreement under this Plan. 2.4 "Participation Agreement" means the written contract by which an employee and the County agree that the employee shall became a Participant under this Plan and to defer a portion of the employee's compensation accordingly. 2.5 "Plan" means the Contra Costa County Deferred Compensation Plan expressed herein. 2.6 "Normal retirement age" means age 51 for safety retirement employees and age 58 for other employees. SECTION 3 PARTICIPATION. 3.1 Any employee may become a Participant under the _Plan... The employee becomes a Participant upon the effective date of a Participation Agreement between the employee and the County. The Participation Agree- ment shall include the Participant's designation of the method by which benefits under the Plan are to be paid, and the time when such payments shall begin. These designations shall become irrevocable 30 days after the Participant's separation from County service. 8I,/."7,S 3.2 The effective date of the Participation Agreement or any modi- fication thereof shall- be the first day cif the calendar month following acceptance by the County. No compensation other than for services pro- vided on or after the effective date of the Participation Agreement shall be deferred under the Plan. 3.3 All the provisions of the Plan are incorporated by this reference into any Participation Agreement executed hereunder. 3.4 The Participation Agreement shall continue in full force and effect for the calendar year or portion thereof after its effective date, and from year to year thereafter until terminated. 3.5 The Participation Agreement shall specify the amount to be deferred under the Plan out of thea cowpe at an otherwise payable to the employee for each month's service. (1) The amount deferred shall not be less than $50 per month. (2) Except as provided in paragraph (3) , the maximum that may be deferred for the taxable year shall not exceed, the lesser of -- (A) $7,500, or (B) 33 if 3 percent of the Employee' s includible compen- sation, reduced by any amount excludable from the Employee's gross income for the taxable year under Section 403 (b) of the Internal Revenue Code (public school employee annuities) . The term "includible compensation" means compensation for services per- formed for the County which (taking into account Sections 457 and 403 (b) of the Internal Revenue Code) is currently includible in gross income. The formula for computing maximum' contributions is a reciprocal formula in which each dollar deferred reduces the compensation base from which the deferrable amount is calculated. (3) For one or more of the Employee's last 3-taxable years beginning on or after January 1, 1981 and ending before he attains normal retirement age, the ceiling set forthin paragraph (2) -shall be the lesser of --- (A) $15,000, reduced by any amount excludable from the Employee's gross income for the taxable year under Section 403 (b) of the Internal Revenue Code, or (B) the sum of '-- (i) the ceiling established for purposes cif ,para- graph {2} for the taxable year (determined without regard to this para- graph) , plus (ii) so much,- of the ceiling established for purposes of paragraph (2). for taxable years:_before the taxable year as has not theretofore been used under paragraph. (2) or this paragraph. -2- 3.6 There shall be no deferral of compensation when the amount pay- able for a month's service less all other: deductions,. including.. a�vancsd Pays is less than the amount specified to be deferred. 3.7 A Participant may modify the Participation Agreement as to the amount of monthly compensation to be deferred by filing a written direction with the County. Such modification may increase, decrease, or renew such deferral and is effective only as to compensation earned from the first day of the calendar month following filing of the written direction and acceptance by the County. 3.8 Deferral of compensation under a Participation.,;Agreement may be terminated by the County or- the Participant, .provided that the. -termi- nating party dives written notice to the other party before the first day of the month in which such termination i8 to beeffective and at least 15 clays prier to such effective date, Te�ima-,tionhas no offect respecting compensation deferred priar to the effective date thereof, or any debits or credits to the Participant's account which remains subject to payment only as provided in the Plan. Deferral of compensation :shall- terminate upon a Participantis separation from County service. 3.9 From time to time a participant may designate a Benefi-ciary to receive any sums whish may became payable under the Plan upon the death of the Participant. A Participant also may designate a contingent Beneficiary, who shall receive any sums to which the primary Beneficiary would have received but for the death of the primary Beneficiary. Any such designation shall be by a written instrument (including, but not limited to a Participation Agreement) filed by the Participant with the County. Any such: designation maty be modified by written instrument filed by the Participant with the County. in the absence of any effective designation or in the event ,of the death of all designated Beneficiaries, the Beneficiary shall be the estate of the Participant.. SECTION 4 . INVESTMENT FUND. _ 4.1 The County shall establish and maintain a fund as a convenient method of setting aside s portion of- its assets, to provide a measure of the benefits to which Participants may become entitled, and to meet its obligations under the Plana This fund is referred to herein as the "Investment Fund". The assets of the Investment Fund shall be invested only in such investments as in the opinion of the County are allowed under the Constitution and statutes of the State of California. 9.2 As' required by federal law- the Investment Fund shall: at all, times remain a part of the general assets of the County and shall remain available for the payment of County debts. Neither the exi.stance. of the Pian nor of the Investment Fund shall be deemed to create'. ,a. trust and the County shall, at all times be the legal >and beneficial owner of.- all assets -3- of the Investment Fund. Neither the existence of the Plan nor of. the Investment Fund shall entitle any Participant, the beneficiary of any Participant, or a creditor of any Participant to any claim or lien against the assets of the Investment Fund. Participants and their beneficiaries shall have only the right to distribution_ in accordance with the pro- visions of the Plain. SECTION S. PARTICIPANT'S ACCOUNT. 5.1 For the purpose of measuring and determining its obligations under the Plan to Participants and their beneficiaries, the, County shall establish and maintain an account for every Participant. Each Participant Account shall be credited monthly with an amount equal to the deferred. income of the Participant attributable to the preceding month. Each Participant Account shall further be credited or debited„ as the case may be, quarterly, with an amount equal to the Investment Fund earnings, gains, lossea, penalties and expenses for the preceding calendar- quarter attri- butable to that undivided portion of the Investment Fund 'reflected by the average daily balance in the Participant Account for such quarter. The end of each calendar quarter as to which Participant Accounts are so adjusted is the "valuation date" of such Participant Accounts. 5.2 Without regard to the amount of compensation deferred by a Participant., the County's obligations to the Participant or beneficiary thereof are limited to an amount. .equal.. to the balance in the Participant's Account upon the valuation date= coinciding with or next preceeding the occurrence of the condition giving rise to a right to distribution, plus . earnings or gainsand less losses,-penalties and expenses:,attributed thereto until the balance is paid in full . it is a condition of this Plan that the County is not subject to any liability to any `Participant or beneficiary thereof on account:_of any losses, penalties .or expenses incurred by the Investment .Fund: and "charged to the Participant's Account or, for any failure of the Investment-Fund to obtain earnings or gains. In consideration` of these conditions, the Participant and beneficiary will have credited to the Participant's Account, an amount equal to the Investment Fund net earnings orgains for the preceeding calendar quarter, if any, attributable to that undivided portion of the Investment Fund reflected by the, average daily balance: of the Participant's Account for such quarter. SECTION 6. DISTRIBUTIONS. 6.1 Participants and their beneficiaries are entitled to distri- bution by the County subject to _>tha conditions contained in .the Plan. The amounts payable shall be equal in dollar value to the .amount stated in the Participant's account upon the valuation date coinciding with or next preceding the commencement of distribution; together with such -4- ince and subject to such- losses and, expenses as may be, attributable tosuch account thereafter, less any payments or settlements hereunder. All payments shall be subject to any State or Federal taxes required .to be withheld. Distribution otherwise authorized shall commence not later than 60 days after written demand, but in any event not later than .60 days after the end of the taxable year in which the Participant separates from County service, dies, becomes disabled or becomes entitled to post- poned distribution. 6.2 The following conditions give rine to a right to distribution: (a) Participant's separation from County service; . or (b) A Participant rmy elect to postpone the .distribution of his interest Zander the plan to a date specified by such Participant,, provided that such specified date is not later than the close of the calendar year in which the Participant will attain age 74 1/2. A Participant who defers distribution of his interest under the plan also may elect that if such Participant dies or becomes disabled prior to the deferred distribution date he has elected, the Participant's interest in the plan shall commence to be paid after determination of death or disability by--the County. 6.3 A Participant may designate the method of distribution of his interest under the plan, provided that the method of payment is one of the following methods: (a) A single lump sum payment; (b) Consecutive monthly payments over a period not extending beyond the life expectancy of the Participant or the joint life and last survivor expectancy of the Participant and his spouse (such life expectancy to be determined -as of the date of ;separation from County service) ; (c) A combination of the methods specified under (a) and <(b) above. Notwithstanding any election to .the contrary by a Participant, beginning with the taxable year in which the Participant attains age, 70 1/2, the amounts payable shall not be less than the minimum expressed in 26 CFR. 51.457-2 (i) (3) 6.4 Upon the death of a Participant, and subject to" Section 6.5, the County shall pay his beneficiary in the manner stated in the Partici- pation Agreement. 6.5 Cther .payments: (a) If a Participant fails to designate a method of distribution, payment of the Participant's entire interest under the Plan_ shall be made in a single lump sum within 60, days after Participant's separation from County service. (b) Notwithstanding any other provisions of the Plan, the County, in its discretion, may at any time discharge in full its obligations under the Plan to any Participant by distributing to the Participant, or follow- ing the death of the Participant by distributing to his surviving spouse or ,other Beneficiary, a sum equal to the amount stated in the Participant's account record upon the next preceeding valuation date. (c) If the Participant and (if payments have commenced to the Participant's surviving spouse) , the surviving spouse dies 'before the entire amounts payable have been paid,, the balance shall be paid under the Plan within five years after the date of such death. (d) Notwithstanding a Participant's designation of the method by which distributions under thePlan are to be paid-.or of .the time when such payments shall begin, the County, in its discretion for the purpose of enforcing requirements of the Plan, the Internal. Revenue Gude, or the regu- lations of the internal Revenue Service., may determine the method by which distributions under the Plan are to be paid and the time when such payments shall begin. 6.6 Emergency withdrawals In cases of financial hardship resulting from unforeseeable emergency, a Participant may request withdrawal not exceeding an amount necessary to meet the financial emergency, without regard to his entitlement tc` dietribution hereunder. An unforeseeable emergency is defined as severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant or of a dependent of the Participant, loss of the Participant's property due to casualty or other similar extra- ordinary and unforeseeable circumstances arising as a result- of events beyond the control of the Participant. The: County Administrator or his designee shall determine whether the conditions for an emergency withdrawal are mat. If the Administrator gives written approval to aaemergency with- drawal he shall authorize a lump sum payment to the Participant limited to that amount necessary to meet the financial emergency but -not exceeding the amount stated in the Participant's Account on the date of the Administrator's determination, and the amount stated in the Participant's Account shall be reduced accordingly. Examples of qualifying unforeseeable emergencies are illness or injury, family death, fire, court orders, or. natural calamity, not relieved by insurance or other reimbursement and not relievable by ceasation of deferrals under the Plan., or liquidation of other of Partici- pant's- assets without severe financial hardship. Withdrawals for expendi- tures normally budgeted, such as for ' down payment on a homie or vehicle purchase are not permitted. 6.7 Where payments are authorized in m nthly installmients, the County Administrator or .his designee shall: determine the amount of said install- ments and the basis on which they are determined. Such-' monthly installments may be measured by and equal to the sum of any amounts obtainable by the County through any method of monthly settlement available ;on a .sum equal, to the amount payable. The County may segregate such amount in a separate interest bearing account determined by the County. -6- 6 8 Notwithstanding any other provisions of the Plan, the County may require any Participant or Beneficiary to submit an application or claim for distribution to the County in fora satisfactory tb the County, prior to the commencement of any payments to any such .person; provided, however, that beginning with the taxable year in which a Participant attains age 74 1./2 the County shall cause an amount to be paid which is not Less than the minimum expressed in 26 CPR 51.457=2 (i) (3) . SECTION 7.• ADMINI STFtATION. 7.1 The County Administrator ray promulgate regulations which shall govern the interpretation -: and administration of the Plana 7.2 Differences of opinion concerning the rights and duties of participants, beneficiaries, or the County, under the Plan, including its interpretation and administration, shall be determined after hearing by the County Administrator and such decision shall be final. 7.3 Investments. Any or all amounts in the Investment Fund may be paid over and delivered to a"bank, trust company, savings and loan association, or other financial institution to which the County may lawfully deliver such amounts. Any agreement for such investments shall provide; but need not be limited to, the followings (a) That the County shall remain the owner of all amounts delivered and any gains or .earnings thereon. (b) That the institution shall hold all certificates, annuity policies and other documents evidencing ownership of such investment Fund assets and shall maintain such re0o rds including the account record of each Participant, as may be agreed tpon from time to time by the institution and the County. (c) That no Less frequently than ,annually, the institution shall furnish the County with written reports showing the amounts in the Investment Fund and the balance in each Participant's Account.: 7.4 Expenses attributable to investment of all or any part of the Investment Fuad, and from and after :January 1, 1982 all County expenses attri- butable. to administration of the Plan, shall be charged to the investment Fund and shall be taken into account quarterly in determining the Fund's earnings, gains and losses. 8.1 Each Participant shall be deemed to have assented to all of the terms and, conditions of the Plan. No Participant or beneficiary may sell, transfer, asoi.gn, hypothecate, or otherwise dispose of all or any part of his rights under the Plan, and any attempt to do so shall be void. �7- 8.2 This Plan may be mended or terminated= by the County lat any time. No .amendment or termination of the Plan shall reduce or impair the rights of any Participant or Beneficiary which have already accrued. Upon termination' of the Plan, the County ,ray make payments to; Participants. -or. Beneficiaries equal to all amounts payable, under, such part of Section 6 as the county may elect. 8.3 The Plan shall not be construed directly or indirectly as giving any Participant any right to continue his employment with the County car any other right: or cause of action in law or equity against the County, except' with respect to distributions expressly provided for herein. $ 4 The Plan shall be binding upon and shall inure to the benefit of the Countyr its successors ,and assigns, all. Participants and, Beneficiaries and their heirs, successors and legal representatives. 8.5 Any notice or other communication required or permitted under the Plan shall be in writing, and if, directed to the County shall. be sent to the County Administrator and if directed to a Participant or' tq a Beneficiary shall be sent to such Participant car Beneficiary at his last known address as it appears on the records of the County Director of Personnel. 8.6 Deductions for employee contributions to retirement associations and for Federal xnsuranee: Contribution:Act (Social Security). purposes shall be made without reference to compensation deferred pursuant to this Plan. Salary serving as basis for computation of retirement benefits shall; be that salary due before deduction of any deferred compensation, as determined by the County Lvvloyees Retirement Law of 1937, as amended. 8.7 The County does not warrant any tax benefit nor any financial benefit under the Plan, or the financial soundness of any investment including custodial accounts. Without limitation to the foregoing the County and its officers, employees and agents shall be held harmless by the :Participant anti any.. beneficiary from, and shall not be subject to any liability, on account of, the Federal or State tax oonsequencesp or any ether oonsequences of any determination as to the amount of compensation to be deferred, the method by which distributions under the Plan are paid, the persons I to wham such distri- butions are paid, the 'amount of distributions paid, or the commencement or terraination of distribution. 8.8 The County, its officers, employees, and agents shall be held harmless by the Participant and any, Beneficiary from, and shall not be subject to any liability hereunder,` fearall: "acts.perforzid %n gpod faith . 8.9 This Plan and any Participant Agreement hereunder are entered into in the County of Contra Costa and are subject to the laws of the State of California. 8.10 This Plan is ,Intended to comply, and shall be construed in accordance with Section 457 of the Internal Revenue Code. The County shall have the right to amend the Plan to the extent that mky be ..necessary to conform the Plan to the requirements of Section 457 of the Internal . Revenue Code and any other applicable law, regulation or ruling, including amendments that are retroactive to the effective date of the Plan. AWW/j/s 6-5-79 12--5-80 12-11-8th 1-23-81 2-3-81 3-2- 81 3-4-01 3-11-91 -9-