1994-134-Amending Town's Deferred Compensation Plan To Include ICMA Retirement CorporationRESOLUTION 1994 - 134
RESOLUTION OF THE TOWN OF LOS GATOS
AMENDING TOWN'S DEFERRED COMPENSATION PLAN
TO INCLUDE ICMA RETIREMENT CORPORATION
RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa
Clara, State of California, that the Town of Los Gatos amend Town's Deferred
Compensation Plan to include ICMA Retirement Corporation as an administrator as
outlined in the attached.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the 6th day of September, 1994 by the following vote:
COUNCIL MEMBERS:
AYES: Joanne Benjamin, Steven Blanton, Linda Lubeck,
Patrick O'Laughlin, Mayor Randy Attaway
NAYES: None
ABSENT: None
ATTEST:
�JNNNyeS ''
CLERK OF THE TOWN LOS GATOS
LOS GATOS, CALIFORNIA
DEFERRED COMPENSATION PLAN
Section 1. Name: The name of this Plan is the Town of Los Gatos Deferred
Compensation Plan, hereinafter referred to as the "Plan ".
Section 2. Purpose: The primary purpose of the Plan is to attract and retain personnel
by permitting them to enter into agreements with the Employer which will provide for
deferral of payment of a portion of their current Compensation until death, disability,
retirement, termination of employment, or other event as provided herein, in accordance
with the provisions of Section 53212 - 53214 of the Government Code of the State of
California, and Section 457 and other applicable sections of the Internal Revenue Code.
This amended Plan becomes effective.
Section 3. Definitions: For the purposes of this Plan when used and capitalized herein
the following words and phrases shall have the meaning set forth below:
3.1 "Employer shall be the Town of Los Gatos.
3.2 "Eligible Employee ", hereinafter referred to as "Employee" means any
officer of full -time employee of the Town of Los Gatos. Employee
also means any permanent part -time employee working half -time or
more.
3.3 "Participant" shall mean any Employee who fulfills the requirements
under Section 4.
3.4 'Participation Agreement" shall mean the agreement executed and
filed by an Employee with the Employer pursuant to Section 4, by
which the Employee 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 services performed during the
period that the Employee is a Participant including any amounts that
may be credited to the Participant's account in accordance with
Section 8 of the Plan. Compensation shall be taken into account at
its present value and its amount shall be determined without regard
to any community property laws.
ATTACHMENT 3
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his investment objective by filing a modification, 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 modification or (ii) any or all
amounts credited to the Participant's deferred
Compensation book account before and after the date of
filing the modification but in such case only with respect
to periods after the date the modification 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 may inelude
6.3 Each Participant's deferred Compensation book account
shall be revalued monthly to reflect the earnings, gains and
losses which would have been earned had the Participant's
account been invested in the medium specified in his
designated investment objective.
6.4 The Employer may, but is not required to, set aside funds
which may be held by the Custodian to meet the
Employer's liabilities hereunder. All such funds shall at all
times be a general asset of the Employer.
6.5 Neither his Plan nor any Participation Agreement nor any
book account shall be deemed to create a trust or
custodial account on behalf of or for the benefit of any
Participant of the Plano r such Participant's beneficiaries.
No Participant in the Plan nor his beneficiaries shall have,
by reason of the Plan, Participation Agreement or book
account, any secured or preferred interest in or to any
assets of the Employer and in the event of default of any
payment due under the Plan, the Participant or his
beneficiaries shall have the status of a general creditor of
the Employer.
The Employer shall have only a contractual obligation to
pay the benefits due the Participant under the Plan.
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Section 7. Distribution of Benefits:
7.1 Commencement of Distribution: Distributions under the
Plan shall commence no earlier than the date the
Participant separates from service with the Employer
(within the meaning of Internal Revenue Code Section
1.457[h] [2] and [3]) and no later that the later of (i) 60
days after the close of the Employment Period in which
the Participant (or former Participant) attains his Normal
Retirement Age or (ii) 60 days after the closed of the
Employment Period in which the Participant separates
from service with the Employer. Subject to the approval
of the Employer, a Participant shall, prior to his Normal
Retirement Age, elect a time of commencement of his
distribution from the Plan. If no such election or approval
is made or obtained, payments shall be made in
accordance with the instructions of the Employer.
7.2 Form and Duration of Distribution: Commencing with the
date determined pursuant to Section 7.1, the full amount
credited to a Participant's book account (reflecting
investment earnings, gains or losses), less any Federal of
State income tax required to be withheld, shall be
distributed provided, however, that the amounts payable
during the Participant's remaining life expectancy
(determined as of the date of the initial distribution
payment) shall be greater than one -half of the full amount
credited to the Participant's book account:
7.2(a) In a lump sum; or
7.2(b) In monthly, quarterly, semi -annual or annual installments.
Installment distributions shall be made in substantially
equal payments, but no payment shall have a value of less
than (the smaller of) One Hundred Dollars ($100.00) or
the balance credited to the Participant's book account. A
Participant's book account balance may continue to be
invested until, in the Employer's sole judgement, cash is to
be withdrawn for payment of benefits.
7.2(c) In the form of an annuity under any settlement option
offered in the annuity contract.
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Participant, the Participant may apply to the
Committee for withdrawal of such amount from
the Plan. "Unforeseeable emergency" means a
severe financial hardship to the participant
resulting from a sudden and unexpected illness
or accident of the Participant or of a dependent
(as defined in Section 152(a) of the Internal
Revenue Code) of the Participant's, loss of the
Participant's property due to casualty, or other
similar extraordinary and unforeseeable
circumstances arising as a result of events
beyond the control of the Participant.
Examples of events which may involve an
unforeseeable emergency" are catastrophic
illness, flood, fire, earthquake, death in the
family or disabling injury. Withdrawals will not
be permitted for expenditures normally
budgetable, such as down payment on a home,
purchase of an automobile, or college expenses.
Withdrawal will not be allowed to the extent
that the hardship may be relived: (i) through
reimbursement or Compensation by insurance
of otherwise, (ii) by liquidation of the
Participant's assets (to the extent such
liquidation would not itself cause severe
financial hardship), or (iii) by cessation of
deferrals under the Plan. Withdrawals of
amounts because of an unforeseeable
emergency will be permitted only to the extent
reasonably needed to satisfy the emergency
need. Any amount so approved hereunder for
withdrawal shall be paid to the Participant in a
lump sum. The withdrawal shall be effective at
the later of the dates specified in the
Participant's application or the date approved
by the Committee.
Section 8. Employer Participation: Notwithstanding any other provision of this Plan,
the Employer may, subject to the limitations of Section 4, make additional deposits to a
Participant's deferred compensation book account as additional Compensation for the
services rendered by the Employee to the Employer during any Employment Period,
provided the Employee has elected to have such additional Compensation deferred,
invested, and distributed, pursuant to this Plan, prior to the period in which the
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7.3 Distribution Eligibility:
(a) Retirement - In the event of retirement of the
Employee from the Employer, form and
duration of distribution shall be as provided in
Section 7.2.
(b) Termination of Employment - In the event of
separation from service of the Employee from
the Employer, form and duration of distribution
shall be as provided in Section 7.2.
(c) Disability - In event of termination of
employment by reason of disability, form and
duration of distribution shall be as provided in
Section 7.2.
(d) Death - In the event of the death of any
Participant, either before or after separation
from service, the full amounts credited to the
Participant's book account, less any Federal or
State income tax required to be withheld, shall
be distributed to the Participant's
beneficiary(ies) (as determined under Section
10.4) at the time and in the manner designated
in the Participant's Participation Agreement.
Choices of form of distribution of benefits shall
be as provided in Section 7.2. Notwithstanding
the foregoing, such distribution shall commence
no later than the latest date determined
pursuant to Section 7.1 as if the Participant had
survived to such date, and the manner of
distribution must be such that the payments are
made: (i) if the beneficiary is the Participant's
surviving spouse, over the spouse's remaining
life expectancy (determined as of the date of
the initial distribution payment to the spouse)
or any shorter period; or (ii) if the beneficiary
is not the Participant's surviving spouse, over a
period not in excess of 15 years.
(e) Unforeseeable Emergency - In the event of an
unforeseeable emergency affecting a
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PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos, California, held on the 6th day of September, 1994 by the following vote.
COUNCIL MEMBERS:
AYES: Joanne Benjamin, Steven Blanton, Linda Lubeck, Patrick O'Laughlin
Mayor RANDY ATTAWAY
NAYS: None
ABSENT: None
ABSTAIN: None
SIGNED:
MAYOR OF THE TOW10F S GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK OF THE TOWN WLOS GATOS
LOS GATOS, CALIFORNIA