AG 94-078 - MUNICIPAL EMPLOYEE'S BENEFIT TRUST & FIRST INTERSTATE BANK OF WASHINGTON AG G71 - TV
CITY OF FEDERAL WAY
JOINDER AGREEMENT
THIS AGREEMENT entered into between the City of Federal Way,
Washington, a Washington municipal corporation; First Interstate
Bank of Washington, N.A. , a National Banking Association, Trustee;
and the Trust Committee of the Municipal Employees' Benefit Trust:
W I T N E S S E T H:
WHEREAS, the City of Federal Way has agreed that certain
benefits will be provided to the employees in lieu of coverage
under the Federal Old Age, Survivors, Disability and Health
Insurance Act; and
WHEREAS, the City of Federal Way Employees' Retirement System
( "Plan" ) , to which the City of Federal Way, as Employer, and the
City Manager, Kenneth Nyberg, the Management Services Director,
Marie Mosely, and the Human Resources Manager, Mary McDougal, as
Trustees, are signatories, was designed and adopted effective
June 1, 1990, to provide those benefits; and
WHEREAS, the City of Federal Way and the Federal Way Plan
Committee have decided that the assets and the future contributions
to the Plan can best be managed and invested according to the terms
of the Municipal "Employees' Benefit Trust ( "Trust" ) established on
October 1, 1972, and restated effective January 1, 1988; and
WHEREAS, the City of Federal Way acknowledges that the
Investment Advisory Committee has adopted a rule, ratified by the
Trust Committee, in writing, under Article VI of the Trust to
permit a Participating Employer to designate a member to sit on the
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ORIGINAL
Investment Advisory Committee but the position shall be nonvoting
until the Participating Employer has at least a 5% interest in the
invested assets of the Trust. Such interest shall be determined by
the Trust Committee. The Trust will be amended to incorporate the
rule at a future restatement if the Trust Committee determines such
action is necessary.
WHEREAS, the City of Federal Way represents that its Plan is
qualified under Internal Revenue Code of 1986, as amended ( "Code" )
Section 401 (a) and the current trust is exempt from tax under Code
Section 501 (a) , a favorable determination letter being issued by
the Internal Revenue Service on September 23, 1991, and that the
Plan Committee is not aware of any action in the operation of the
Plan that would jeopardize its qualification.
WHEREAS, the City of Federal Way has requested permission from
the Trust Committee of the City of Bellevue and the Trustee to
become a Participating Employer in the Municipal Employees' Benefit
Trust as that term is defined in section 2 . 06 of the Trust
Agreement; and
WHEREAS, the Trust Committee of the City of Bellevue and the
Trustee have agreed to permit the City of Federal Way to become a
Participating Employer in the Municipal Employees' Benefit Trust;
and
WHEREAS, the City of Federal Way and the Federal Way Plan
Committee accordingly agree that the Plan assets and contributions
should be paid over to the Trustee to permit the Plan to be so
administered; and
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WHEREAS, the City of Federal Way agrees to pay its allocable
share of reasonable expenses connected with the management of the
assets and contributions made under the terms of the Plan and
administered under the terms of the Trust; and
WHEREAS, First Interstate Bank of Washington, N.A. , agrees to
accept, manage and invest the assets and contributed funds under
the terms of the Plan and Trust with reasonable expenses allocable
thereto to be paid by the City of Federal Way;
NOW, THEREFORE, it is agreed as follows:
That the City of Federal Way Employees' Retirement System,
effective April 1, 1994, be attached to and administered under the
terms of the Municipal Employees' Benefit Trust established on
January 1, 1972 and restated effective January 1, 1988, with the
allocable share of reasonable expenses incurred by the Trustee to
be paid by the City of Federal Way from its contributions made
pursuant to Article 3 of the Plan.
That by its execution of this Joinder Agreement, the City of
Federal Way amends and restates its current Plan and adopts and
agrees to be bound by all provisions, conditions and limitations of
the Municipal Employees' Benefit Trust as amended from time to
time, including the provisos above, and as if the City of Federal
Way were a signatory to that Trust Agreement.
That the City of Federal Way shall be a "Participating
Employer" as defined in section 2 . 06 of that Trust Agreement.
The City of Federal Way Employees' Retirement System shall
conform at all times to the requirements of the Internal Revenue
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Code applicable to plans qualified under Internal Revenue Code
Section 401 (a) . The adoption of the Plan by Federal Way is
expressly contingent upon obtaining a determination letter from the
Internal Revenue Service that the adoption of the Plan and Trust by
the City of Federal Way does not impair the Plan and Trust's
qualification under the Internal Revenue Code.
IN WITNESS WHEREOF, the par ies to this Agreement have
executed this Agreement this / "day of March, 1994.
CITY OF FEDERAL WAY
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TRUST COMMITTE
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Its:
FIRST INTERSTATE BANK OF WASHINGTON,
N.A.
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Its: 4-�1J
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