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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 MGRO50 A: \MISC\DEFCOMP.PLN 9/6/94 -1- 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. MGROSO A: \MISC\DEFCOMP.PLN 9/6/94 -5- 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. MGR050 A: \MISC\DEFCOMP.PLN 9/6/94 -6- 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 MGRO50 A: \MISC \DEFCGMP.PLN 9/6/94 -8- 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 MGRO50 A: \MISC\DEFCOMP.PLN 9/6/94 -7- 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