1982-010-Approving The Town's Participation In A Deferred Compensation PlanRESOLUTION NO. 1982 -10
A RESOLUTION APPROVING THE TOWN'S PARTI-
CIPATION IN A DEFERRED COMPENSATION PLAN
BE IT RESOLVED, and it is hereby resolved that the Town Council of
the Town of Los Gatos does hereby approve the Town Deferred Compensation
Plan (a copy of which is attached hereto) and further approves the par-
ticipation of Management employees in the Plan.
PASSED AND ADOPTED by the Town Council of the Town of Los Gatos,
California, at a regular meeting held this 18th day of
January , 1982, by the following vote:
AYES: COUNCIL MEMBERS Ruth Cannon, Thomas J.
Ferrito MarLyn J. Rasmussen, Brent N.
Ventura and Peter W. Siemens
NOES: COUNCIL MEMBERS None
ABSENT: COUNCIL MEMBERS
ABSTAIN: COUNCIL MEMBERS None
SIGNED:
4AYRF?T;HE TOWN OF LOS GATOS
ATTEST:
CLERK OF THE TOWN OF Lq 'f GATOS
THE TOWN OF LOS GATOS
DEFERRED COMPENSATION PLAN
Section 1. Name: The name of this Plan is The Town of Los Gatos Plan
hereinafter referred to as the "Plan ".
Section 2. Purpose: The primary purpose of the Plan is to attract and
hold personnel by permitting them to enter into agreements with the Employer
which will provide for deferral of payment of a portion of their current com-
pensation until death, disability, retirement, termination of employment, or
other event as provided herein, in accordance with the provisions of Sections
53212 - 53214 of the Government Code of the State of California, and the appli-
cable provisions of the Internal Revenue Code. This Plan becomes effective
September 21 1981
Section 3. Definitions: For the purposes of this Plan certain words
and phrases used herein shall have the following meanings:
3.1 "Employer" shall be The Town of Los Gatos.
3.2 "Employee" shall mean all officers and employees of The Town
of Los Gatos.
3.3 "Participant" shall mean any Employee who fulfills the require-
ments of enrollment into the Plan.
3.4 "Participation Agreement shall mean the agreement executed and
filed by an Employee with the Employer pursuant to Section 4, by which the Em-
ployee elects to become a participant in the Plan.
3.5 "Compensation" shall mean the total of all amounts which would
be paid by the Employer to or for the benefit of an Employee (if he were not a
participant 'in the Plan) for actual services for the period that he is a parti-
cipant.
3.6 "Employment Period" means a period from January 1 through December
31 of the same year, except that the first year of an Employee hired in mid -year
shall be the period beginning with the date of employment and ending on December
31.
3.7 "Disability" means the inability of a Participant to engage in his
usual occupation by reason of medically determinable physical or mental impair-
ment as determined by the Employer on the basis of advice from a physician or
physicians.
3.8 "Normal Retirement Age" means any date indicated by participants
in a written statement to be filed with the employer which respects minimum
retirement ages as defined in the applicable retirement system sponsored by the
employer.
4.4 A Participant may terminate further deferrai of Compensation
under the Plan by filing with the Employer an executed written notice of termi-
nation at least thirty (30) days prior to effective date of termination. Once
further deferral of Compensation is terminated, a Participant may rejoin the Plan
in accordance with rules established by the Committee. No previously deferred
amounts shall be payable to an Employee upon terminating further deferral of
Compensation under the Plan unless otherwise due pursuant to Section 7 hereof.
4.5 A Participant may select, pursuant to Section 6, one or more
investment objectives provided that the amount deferred for each objective equals
or exceeds the minimum of not less than $20.00 per pay period.
Section 5. Deferral of Compensation: During each Employment Period
in which the Employee is a Participant in the Plan, the Employer shall defer
payment of such part of his Compensation as is specified by the Employee in the
Participant Agreement which he has executed with the Employer.
Section 6. Administration of the Plan:
6.1 The Plan shall be administered by the Committee appointed in
accordance with Section 13, which shall have the sole authority to enforce the
Plan and shall be responsible for the operation of the Plan in accordance with its
terms, and shall determine all questions arising out of the administration, inter-
pretation and application of the Plan, which determinations shall be conclusive
and binding on all persons.
6.2 The Employer shall establish a deferred compensation book account
for each Participant to which shall be credited such Participant's deferred compen-
sation at such times as it would have been payable but for the Participant's
election to participate in the Plan. On executing a Participation Agreement, the
Employee shall designate his investment objective. The investment objective shall
be used to measure the increase or decrease in value of the Participant's deferred
compensation book account. A Participant may change his investment objective by
filing a new Participation Agreement, and such investment objective shall apply
to (i) all amounts credited to the Participant's deferred compensation book account
after the date of filing the revised Participation Agreement or (ii) any or all
amounts credited to the Participant's deferred compensation book account before
and after the date of filing the revised Participation Agreement but in such case
only with respect to periods after the date the revised Participation Agreement is
filed. As used herein, "investment objective" means any investment specified
from time to time by the Employer solely for the purpose of measuring the value of
the Participant "s deferred compensation book account and shall include the following:
mutual fund shares, interest deposits with a savings and loan association or banking
institutions, investments in debt and /or equity installments, an annuity contract with
an insurance company, or trust deeds.
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Participant's book account balances may continue to be
invested until, in the Employer's sole judgment, cash is to be
withdrawn for payment of benefits. Payment of benefits may commence
within 90 days following termination of employment.
7.2 (c) For any amount of deferred compensation, the
Participant may elect to have benefits under the Plan attributable
thereto paid in the form of an annuity under any one of the follow-
ing settlement options or any other option agreed to by the Em-
ployer:
120 Months Certain and Life
180 Months Certain and Life
240 Months Certain and Life
Life Annuity Only
With the consent of the Employer, in the case of a Participant who
separates from the service of the Employer prior to attaining age
70, the annuity commencement date under an annuity payable under
this Section 7.2 (c) may be deferred to any date prior to the date
the Participant attains age 70. In the case of a participant who
separates from the service of the Employer upon or after attaining
age 70, annuity payments shall commence as of a date which is within
90 days following such separation from the service.
7.3 Disability - In event of termination of employment
by reason of disability distribution of benefits shall be pro-
vided in Section 7.2.
7.4 Other Termination - In event of termination of em-
ployment for reason other than those specified in Section 7.2 and
7.3, distribution of benefits shall be as provided in Section 7.2.
7.5 Death - In event of the death of any Participant,
either before or after termination of employment, then the full
amounts credited to his book account, less any Federal or State
Withholding Taxes required by law, shall be distributed to the
beneficiary(ies) in the manner designated in the Participant's
Participation Agreement. Choices of distribution of benefits
shall be as provided in Section 7.2.
7.6 Financial Catastrophe - In the event of a financial
catastrophe affecting Participant where the withdrawal of funds
would be necessary to prevent great hardship to the Participant
and the amount of withdrawal requested by the Participant is only
the amount necessary to meet that financial catastrophe, and is
not reimbursed by insurance, a Participant may apply to the Com-
mittee for withdrawal of such amount from the Plan.
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(6) months after the Participant's death, the Employer shall direct
said benefits to be paid to the beneficiary or beneficiaries desig-
nated in his last will, or if no will, then to the heirs at law of
the Participant.
Section 11. Amendment and Termination:
11.1 The Employer may at any time and from time to time
by action of its Town Council as evidenced by an instrument in
writing duly executed by the Employer modify, amend, or terminate
the Plan in whole or in part (including retroactive amendments) or
cease deferring Compensation pursuant to the Plan, by delivering to
each Participant a written copy of such modification, amendment, or
termination or of a notice that it ceases deferring Compensation,
provided, however, the Employer shall not have the right to reduce
or affect the value of any Participant's book account or any rights
accrued under the Plan prior to such modification, amendment, term-
ination or cessation.
11.2 In the event of the termination of the Plan by the
Employer under Section 11.1, the value of all Participant's book
accounts shall be distributed to the Participants or their bene-
ficiaries in lump sum by the ninetieth (90th) day after termination
of the Plan.
Section 12. Employer Not Responsible: The Employer may,
but is not required to, invest amounts equal to the deferred compen-
sation credited to a Participant's book account pursuant to the Plan
in accordance with the requests made by each Participant at the time
of enrollment or change in enrollment. The Employer shall retain
the right to approve or disapprove such investment requests. Any
action by the Employer in investing funds, or approving of any such
investment of funds, shall not be considered to be either an endorse-
ment or guarantee of any investment, nor shall it be considered to
attest to the financial soundness or the suitability of any invest-
ment for the purpose of meeting future obligations as provided in
Section 7 of this Plan.
Section 13. Investment Plans Committee: The Investment
Plans Committee, hereinafter referred to as the "Committee," shall
consist of individuals who are Employees of the Employer.
The Town Manager shall certify to the Custodian the names and
specimen signatures of the members of the Committee. As members
are replaced and appointed, such changes shall be certified to
the Custodian in the same manner. The Custodian may rely in good
faith on any directions signed by a majority of the members, or any
person(s) designated to represent them.
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REV 091481