Res 99-307
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RESOLUTION NO. 99-307
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FEDERAL WAY, WASHINGTON, ADOPTING A 401(AL
MONEY PURCHASE PLAN.
WHEREAS, the City has employees rendering valuable services; and
WHEREAS, the establishment of a money purchase retirement plan benefits
employees by providing funds for retirement and funds for their beneficiaries in the event of death;
and
WHEREAS, the City desires that its money purchase retirement plan be administered
by the ICMA Retirement Corporation and that the funds held by such plan be invested in the ICMA
Retirement Trust, a trust established by public employers for the collective investment of funds held
under their retirement and deferred compensation plans;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY
HEREBY RESOL YES AS FOLLOWS:
Section 1. Plan Form The City hereby establishes or has established a money
purchase retirement plan (the "Plan") in the form of The ICMA Retirement Corporation
Governmental Money Purchase and Trust, pursuant to the specific provisions of the Adoption
Agreement (executed copy attached hereto);
Section 2. Plan Assets The Plan shall be maintained for the exclusive benefit of
eligible employees and their beneficiaries; and the City hereby executes the Declaration of Trust of
the ICMA Retirement Trust and attached hereto, intending this execution to be operative with respect
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to any retirement of deferred compensation plan subsequently established by the City, if the assets
of the plan are to be invested in the ICMA Retirement Trust.
Section 3. Plan Trustee. The City does hereby agree to serve as trQstee under the
Plan and to invest funds held under the Plan in the ICMA Retirement Trust; and
Section 4. Plan Administrator. The Human Resources Manager shall be the
coordinator for the Plan, shall receive reports, notices, etc. from the ICMA Retirement Corporation
or the ICMA Retirement Trust; shall cast, on behalf of the City, any required votes under the ICMA
Retirement Trust; and may delegate any administrative duties relating to the Plan to appropriate
departments.
The City authorizes the Human Resources Manager to execute all necessary
agreements with the ICMA Retirement Corporation, incidental to the administration of the Plan.
Section 5. Severability. If any section, sentence, clause or phrase of this resolution
should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity
or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence,
clause or phrase of this resolution.
Section 3. Ratification. Any act consistent with the authority and prior to the
effective date of the resolution is hereby ratified and affirmed.
Section 4. Effective Date. This resolution shall be effective immediately upon
passage by the Federal Way City Council.
RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON, this 21" day of December, 1999.
Res. #99-307, Page 2
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CITY OF FEDERAL WAY
4~
MAYOR, RON GINTZ
JjT~.~
CIT CLERK, N. CHRISTINE GREEN, CMC
APPROVED AS TO FORM:
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..?efT A ORNEY, LONDI K. LINDELL
FILED WITH THE CITY CLERK: 12/21/99
PASSED BY THE CITY COUNCIL: 12/21/99
RESOLUTION NO. 99-307
k:\reso\
Res. ~9-307, Page 3
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RESOlUTION OF
RESOLUTION FOR A LEGISLATIVE BODY f{ELATING TO A MONEY PURCHASE PLAN
City of Federal Way", . ; ,
(!õMPLOYER NAME).
WHEREAS. the Employer has employees rendering va.uable SeNices; and
WHEREAS. the establishment of a money pyn:hase retirement plan benefits employees by providing fUnds
for reuremeot and ruods for their beneficiaries i1 the event of death; and .
WHEREAS. the Employer desires that its money purchase retirement plan be administered by thelCMA
Retirement COrporation and that the funds held SUCh plan be invested in the ICMA ReUremenl TfUSt. a trust
established by public employers for the collective investment of funds held under their retirement and
deferred compensation plans;
NOW THEREFORE BE IT RESOLVED that the Employer hereby establishes or has established a money
purchase retirement plan (the 'Planl in the fOl111 ot (Select one)
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The ICMA Retirement Corporation Governmental Money Purchase & Trust. pursuant to the
specific provisions of the Adoption Agreement (executed copy attached hereto).
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The Plan and Trust provided by the Employer (executed copy attached hereto).
The Plan shall be maintained for the exclusive benefit of eligible employees and their beneficiañes: and
BE IT FURTHER RESOLVED that the Employer hereby executes the Declaration of Trust of the ICMA
Retirement Trus~ and attached hereto. intenãmg this execution to be operative with respect to any
retirement or deferred compensation plan subseQuenBy established by the Employer. if the assets of the
plan are to be invested in the ICMA ReUrement Trust
BE IT FURTHER RESOLVED that the Employer hereby agrees to serve as trustee under the Plan and to
invest funds held under the Plan In the ICMA Rètirement Trust and
BE IT FURTHER that the Human Res~u ,"Mvr. (use tiDe of official, not name) shall be the coordinator
for the Plan; shall receive "repOrts. notices. etc.. from the ICMA Retirement Corporation or the ICMA
Retirement Trust; shall cas~ on behalf of the ElI1Þloyer. any required votes under the ICMA Rølirernent
Trust; may delegate any administrative duties relating to the Plan to appropñate departments; a~d
BE IT FURTHER RESOLVED that the Employer hereby authorizes Iß! M,n'l\pr (use title not name)
to execute all necessary agreements with the ICMA Retirement Corporation Incidental to the edministration
afthe Plan.
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day of nprp~hpr
AYES: 7
NAYS, D
,A.BSENT: ,0
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ICMA Retirement Corporation' P. O. Box 96220 . Washington. DC 20090-6220 . 1-800-326-7272
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DECLARATION OF TRUST
OF
ICMA RETIREMENT TRUST
ARTICLE I. NAME AND DEFINmONS
. . . . --.
Section 1.1 Name: The name of the trust created hereb\ is the ICMA Retirement Trust.
Section 1.2 Definitions: Wherever they are used herein. the following terms shall have the
following respective meanings:
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By.. aws. The by-laws referred to in Section 4.' hereof. as amended from time
to time.-
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Deferred Compensation Plan. A deferred ccmpensation plan established and
maintained by a Public Employer for the purpOse of providing retirement incorne
and other deferred benefits to its employees in accordance with the provision
of section 457 ofthê Internal Revenue Code.
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Employees. Those employees who participate in Qualified Plans and/or [)QfeFred
Compensation Plans.
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Employer Trust. A trust created pursuant to 3n agreement betWeen RC and a
Public Employer. or an agreement betweer: RC and a Public Employer for
administrative services that is not a trust. in either case for the purpose of
investing and administering the funds set aside by such Employer in connec:tion
with its Deferred Compensation agreements with its .employees or in
connection with its Qualified Plan.
Investment Contract. A non-negOtiable contraCt entered into by the Retirement
Trust with a financial institution that prov¡'des for a fixed rate of return on
investment.
ICMA. The International CitY/CountY Management Association.
ICMA Trustees. Those TruStées eleCted by the Public Employers in accordance
whh the provisions of Section 3.11al hereof. who are also members or former
members of the Executive Board of ICMA.
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RC Trustees. Those Trustees eleCted by the Public Employers who, ir.
aCcordance with the provisions of Section 3.1 la) hereof, are also members Or
former members of the Board of DireCtors of RC. .
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Internal Revenue Code. :The Internal Revenue Code of '986, as amended.
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Investment Adviser. The Investment Adviser that enters i~o a ContraCt With
the Retirement Trust 10 provide advice with respeCt to inveStment of the Trust
Property.
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Portfolios. The separate commingled pools of investment established by the.
Investment Adviser to the Retirement TrUSt, under the Supervision of the
Trustees, tor the purpose of providing investments for the Trust ProPerty.
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Public Employee Trustees. Those Trustees eleCted by the Public: Employers
who, in accordance with the provision of SeCtion 3.1 la) hereof, are full-time
employees of Public Employers.
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Public Employer Trustees. Public Employers who serve as trustees of the
Qualified.Plans or Deferred Compensation Plans.
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Public Employer. A unit of state or local government, or any agency or
inStrumentality thereat. that has adopted a Deferred Compensation Plan or a
Qualified Plan and has execUted this Declaration of Trust.
Qualified Plan. A plan that is sponsored by a Public Employer for the purpose
of providing retirement income to its employees and that satisfies the
Qualification reQuirements of Section 401 of the Internal Revenue Code.
Public Employer Trust. A trust that is established by a Public Employer in
connection with its Qualified Plan and that satisfies the requirements of Section
501 oftha Internal Revenue Code, or a trust estabrlShed by.a Public Employer
in conneCtion with its Deferred Compensation Plan and that satisf'tes the
reQuirements of SeCtion 457(b) of the Internal Revenue Code.
RC. The International City Management Association Retireme~t Corporation.
Retirement Trust. The Trust created by this Declaration of Trust. .
Trust Prope.rty. The amounts held in the Retirement Trust as provided in
Section 2.3. The Trust Property shall include any inéome'resulting from the
investment ro the amounts so held.
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Trustees. The Public Employee Trustees, ICMA ,Trustees and RC TrUstees
elected by the Pubfic Employers to serve as members of the Board of TrUStees
of the Retirement Trust.
ARTICLE /I. CREATION AND PURPOSE {)F THE TRUST: OWNERSHIP OF ìRUST PROPERTY
Section 2.1 Creation: (a) the Retirement Trust was created by the execUtion of this
Declaration of Trust by the initial TrUstees and Public Employers and is eStablished,
with respect to each participating PublIc Employer by adoption of this Declaration of
Trust.
Ib The Retirement TruSt is hereby expressly made a part of the appropriate Qualified
Plan or Deferred Compensation Plan of each PublIc Employer that execUtes or has
eXeCUted this Declaration of TruSt.
Section 2.2 PurpOse and Partidpation: lal The purpose of the Retirement Trust is to proVide
for the commingled investment of funds held by the Public Employers in connection
with their Deferred Compensation and Qualified Plans. The Trust Property shall be
íñvested in the Portfolios, in Investmerrt Contracts, and in other investments
recommended by the Investment Adviser under the supervision of the Board of
Trustees. No part of the Trust Property will be inveSted in securities issued by pubrlC
Employers.
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(bl Participation in the Retirement TrUst is limited to Ii) pension and Profit-sharing
trusts which are maintained by Public Employers and that are exempt under seCtion
SOl (a) of the Internal Revenue Code because the Qualified Plans related thereto
qualify under seCtion 401 (al of the Internal Revenue Code and (ii) deferred
compensation plans maintained by Public Employers under Section 457 of the Internar
Revenue Code land trusts maintained by such Public Employers in conneCtion with
'such 457 plans).
Section 2.3 Ownership of Trust Property: (a) The TrUStees shall have legal title to the Trust
Pro perry. The Trust Properry shall. be held as follows:
Ii) for the Public Employer T /'\Jstees for the exclusive benefit of the Employees;
or
(ij in the case of a Deferred Compensation Plån maintained by a Pvblic
Employer that has not established a Public Employer Trust for the plan, for the
pubric Employer as beneficial owner of the plan's assets.
(b The pòrtion of the corpus and income of the Retirement TruSt that equitably
belongs TO any Public Employer Trust may not be used for or diverted to any purpose
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other than for the exclusive benefIt of the Employees (or their beneficiaries) who are
entitled to benefits under such Public Employer Trust.
lei No employer's. Public Employer Trust may assign any part o( its equity or interest
in the Retirement Trust, and any purpOrted assignment of such equity Dr intereSt shall
be void. .
ARTICLE III. TRUSTEES
SeCtion 3.1 Number and Qualification Df Trustees; lalThe BDard Df Trustees shall consiSt of
nine Trustees. FIVe of the Trustees shall be full-time employees of a Public Employer.
rrhe Public Employee TruSteesl who are alIthorized by such Public Employer to serve -
as Trustee. The remaining four T tUStees shall consist of tWo persons .who, at the time
of election to the Board of Trustees. are members or former members of 'the
ExeclItive Board of ICMA, and two persons who, at the time of eleCtion, are members
or former members of the Board of DireCtors of RC. One Df the ICMA Trustees and
one of the RC Trustees shall, at the time of eleCtion. be full-time employees of Public
Employers.
(b No person may serve Çs a Trustee for more than two terms in any ten-year period. .
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SeCtion 3.2 ElectiDn and Term: (a¡' ~cept for the Trustees appointed to fill vacancies
pursuant to SeCtion 3.5 hereof, the Trustees shall be elected by a Vote of a majorrty
of the voting Public Employers in accordance with the procedures setforth in the
By-Laws. -
(b) At the first eleCtion of Trustees, three TruStees shall be eleCted for a term of three
years, three Trustees shall be eleCted for a term of tWo years and three Trustees shall
be eleCted for a term of one year. At each SUbsequent eleCtion, three Trustees shan
be eleCted. each to serve for a term of three years and until his or her successor is .
ëJec;¡;ed and Qualified.
Section 3.3 Nominations: The Trustees who are fUll-time employees of Public Employers
shall serve as the Nominating Committee for the Public Employee Trustees. The
Nominating Committee shall choose candidates for Public EmplDyee TruStee in
accordanèe with the procedures set forth in the By-Laws.
Section 3.4 Resignation and Removal: ral Any Trustee may resign as Trustee (withoUt need
for prior or subsequent accounting) by an instrument in writing signed by the Trustee
and delivered to the Other Trustees and such resignation shall be effeCtive upon such
delivery, or at a later date according to the terms of the instrum~nt. Any of the
Trustees may be removed for cause. by a Vote of a majority of the Public Employers.-
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(b) Each Public Employee TrUSTee shall resign his or her position as Trustee withi
Sixty days of the date on which he or she ceases to be a full-time employee of
Public Employer.
Section 3.5 Vacancies: The term of office of a TrUStee Shall terminate and a vacancy sha:
occur in the event of his or her death, resignation, removal, adjudicated Incompetenc¡
or other incapacity to perform the dUties of the office of a Trustee. In the case of c
vacancy, the remaining TruStees shall appoint such person as they in their discretior
shall see fit (subject to the limitations set forth in this Section), to serve for the
unexpired ponion of the term of the Trustee whC' has resigned or otherwise Ceasec
to be a Trustee. The appointment shall be made by a Written inStrument signed by E
majority of the Trustees. The person appOinted l1USt be the same type of Trustee
(i.e., Public Employee Trustee. ICMA TruStee or f:C Trustee) as the person Who has
ceased to be a TruStee. An appointment of a Trus¡'ee may be made in anticipation of
a vacancy to occur at a later date by reason of I etirement or resignation, provided
that such appointment shall not become effec tive prior to such' retirement or
resignation. Whenever a vacancy shall OCCur, until such vacancy is filled as provided
in this Section 3.5, the TruStees in office, regardless of their number, shall have'all
the powers granted to the TruStees 'and shall diScharge all the dUties imposed upon
the Trustees by this Declaration. A written instru TIent certifying the existence of a
vacancy signed by a majority of the TruStees shall be conclusive evidence of the
existence of such .vacancy.
Section 3.6 Trustees Serve in Representative Capacity: B~' execUting this Declaration, each
Public Employer agrees that the' Public Employe,! TruStees elected ,by the Public
Employers are aUthorized to act as agents and repre.entatives of me Public Emþloyers
colleCTively.
ARTICLE IV. POWERS OF TRUSTEES
SeCtio-n 4.' General Powers: The TruStees shall have the power to conduct the business of
the Trust and to carry on its operations. Such POwer shall include, bUt shall not be
limited to, the power to:
(a)
receive the Trust Property from the Public Employers, Public Employer TruStees
or the trustee or adminiStrator under any Employer Trust:
(b)
enter into a COntract with an InveStment Adviser providing, among other
things, for the establishment and operation of the Portfolios, selection of the
Investment COntraCTS in which the Trust Property may be inveSted, seleCtion
of the other investments for the Trust Property and the payment of reasonable
fe<>..s to the Investment Adviser and to any sub~investment adviser retained by
the InveStment Adviser;
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review annually the performance of the InveStment Adviser and apprOVE
annually the COntraCt with such InveStment Adviser;
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invest and reinvest the TruSt Property in the Portfolios. the Investment
Contracts and in any other investment recommended by the InveStment'
Adviser, but not including Securities issued by Public Employers, provided that
if a Public Employer has direCted that its monies be invested in One or more
specified Portfolios or in .an Investment ContraCt. the Trustees of the
Retirement Trust shall invest such monies in aCcordance with such direCtions;
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keep such portion of the TruSt Property in cash or cash balances as the
Trustees, from time to time. may deem to be in the best interest of the
Retirement Trust created hereby without liability for interest.thereon;
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accePt and retain for such time as they may deem advisable any securities or
other property received or acquired by them as Trustees hereunder. whether.
or not such securities or other property would normally be purchased as
inveStment hereunder,
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cause any securities or other property held as part of the TruSt Property to be
registered in the name of the Retirement TruSt or in the name of a nominee.
and to hold any investments in bearer form, but the books and records of the
Trustees shall at all times show that all such investments are a part of the
Trust Property;
make. execute, acknowledge. and deliver any and all documents of transfer
and conveyance and any and all Other instruments that may be necessary or
appropriate to carry out the POwers herein granted;
vote upon any Stock. bonds, or other securities; giVe general or special proxies
or powers of attorney with or without power of sUbstitution: exercise any
conversion privileges. subscription rights, or other options, and make any
payments incidental thereto; oppose. or consent to. or otherwise participate in,
corporate reorganizations or to other changes affecting corporate securities.
and delegate discretionary powers and pay any assessments or charges in
connection therewith; and generally exercise any of the pOWers of an owner
with respect to stocks. bonds, securities or other property held as part of the
Trust Property;
enter into COntraCtS or arrangements for goods or services required in
connection with the operatio¡1 of the Retirement Trust, including. but not
limited to. contracts with custodians and contracts for the provision of
administrative services;
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borrow or raise money for the purpOses of the Retirement TruSt in such.
amount, and upon such terms and conditions, as the TruStees shall deem
advisable, provided that the aggregate amount of such borrowings shall nOt
exceed 30% of the value of the Trust Property. No 'person lending money to
the TruStees shall be bound to see the application of the money lent or to
inquire into its validity, expediency" or proprietY or any such borrowing;
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incur reasonable expenses as required tor the Operation of the Retirement TruSt .
and deduct such expenses from of the ¡ruSt Property; .
(m)
pay expenses properly allocable to the Trust Property incurred in COnnection
with the Deferred Compensation Plans, Qualified Plans, or the Employer TruSts .
and deduct such expenses from that ponion of the Trust Property to Which
such expenses "are properly allocable;
(n)
payoUt of the TruSt Property all real and personal property taxeS, income taxes
and other taxes of any and all kinds which. in the opinion of the TruStees, are
properly levied, or assessed under existing or fUture lalNS Upon, or in respect .
of, the TruSt Property and allocate any su<:h taxes to the appropriate accounts;
10)
adoPt, amend and repeal the By-laws, provided that such By-laws are at all "
times consistent with the terms of this Declaration of TrUSt;
employ persons to make available intereStS in the Retirement. TrUSt to c
employers eligible to maintain a Deferred Compensation Plan under Section 457
or a Qualified Plan under Section 401 of the Imemal Revenue Code;
issue the Annual Repon of the Retirement Trust, and the disclosure documents
and other literature used by the Retirement Trust;
in addition to conducting the investment program aUthorized in Section 4.1 (d),
make loans, including the purchase of debt obligations. provided that all such
loans shalf bear interest at the current market rate;
contract for, and delegate any pOwers granted hereunder to, such officers,
agents, employees, auditors and attorneys as the TruStees may select,
provided that the TI1JStees may not delegate the powers set forth in p¡;¡ragraphs
(bJ, Ie) and (01 of this Section 4.1 and may not delegate any powers if such ;
delegation would violate their fiduciary dU1ies;
provide for the indemnification of the Officers and Trustees of the Retirement
Trust and pur~hase fiduciary insurance;
maintain books and records, including separate" aCCOunts for each Pub"c
Employer, Public Employer Trustee or Employer Trust and such additional
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separate accounts as are required under, and consiStent with, the Deferred
Compensation or Qualified Plan of each Public Employer; and
(v)
do all such aCts, take all such proceedings, and exercise all such rights and
privileges, although no! specifically mentioned herein, as the TruStees may
deem necessary or appropriate to administer the TruSt Property and to carry
OUt the purposes of the Retirement Trust.
SeCtion 4.4 Distribution of Trust Property: DistribUtions of the Trust property shall be made
- to, or on behalf of, the Public Employer or Public Employer Trustee, in accordance
with the terms of the Deferred. Compensation Plans, Qualified Plans Or Employer
Trusts. The Trustees of the Retirement Trust shall be fully prOteCted in making
payments in accordance with the direCtions of the Public Employers, Public Employer
Trustees or trustees or adminiStrators of any Employer Trust withOUt ascertaining
whether such payments are in COmpliance with the provisions of the applicable
Deferred C()mpensation or Qualified Plan or Employer Trust,
Section 4.3 Execution of Instruments: The Trustees may unanimously designate anyone or
more of the Trustees to execute any instrument or document on behalf of aI/,
including bUt not limited to the signing or endorsement of any check and the signing
of any appli~ions, insurance and Other COl1tracts. and the action of such designated
Trustee or Trustees shall have the same force and effect as if taken by all the
Trustees.
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ARTICLE V. Dl11Y OF CARE AND UABIUTY OF TRUSTEEs
Secnon 5.' Duty of Care: In exercising the powers hereinbefore granted to the Trustees. the
TruStees shall perform all acts within their authority for the exclusive purpose of
providing benefits for the Public Employers in conneCtion with non-trusteed DefaTTed
Compensation Plans and for the Public Employer TrUStees, and shall perform such
ãctS with the care, skill, prudence and diligence in the circumstances then prevaifing
that a prudent pe~on aCting in a like capacity and familiar with such matters would
use in the conduCt of an enterprise of a like character and with like aims.
Sec;tion 5.2 liability: The Trustees shall not be liable for any mistake of judgment or other
action taken in good faith, and for any aCtion taken or omitted' in reliance in good
faith upon the books of acCount or ather records of the Retirement 1 rust, upon the
opinion of counsel, or upon reports made to the Retirement Trust by any of its
officers, employees or agents or by the InveStmem Adviser or any sub-investment
adviser, accountant, appraiser or other expert or consultant selected with reasonable
care by the Trustees, officers or employees of the Retirement Trust. The Trustees
shall also' not be liable for any loss SUstained by the Trust Property by reason of any
investment made in good faith and in accordance with the standard of care set forth
¡nSeCtionS.1.
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SeCtion 5.3 Bond: No TruStee shall be Obligated to give any bond Dr other security for the
performance of any of his or her dUties hereunder.
ARTICLE VI. ANNUAl REPORT TO SHAREHOLDERS
The Trustees shall annually submit to the Public Employers and Public Employer
TrUStees a written report of the transaCtions of the Retirement TrUSt. including financial
statements which shall be certified by independent public accountartts chosen by the
Trustees. .
, ARTlÇLE VII. DURATION OR AMENDMENT OF RETlREME NT TRUST
Section 7.1 Withdrawal: A Public Employer or Public Employer Trustee may, at any time,
withdraw from this Retirement Trust by delivering to the Board of Trustees a Written
statement of withdrawal. In such statement, the Pulolic Employer Dr Public Employer
Trustee shall acknowledge that the Trust Property allocable to the Pu.blic Employer
is derived from compensation deferred by emple yees . of such Public Employer
pursuant to its DefslTsd Compensation Plan Dr from ::ontributions to the accounts of
Employees pursuant to a Qualified Plan. and shall d~igrlate the financial institution
iõ which such property shall be transferred by the Trustees of the Retirement Trust
or by the trustee or a~mjnistrator under an Employer Trust.
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Section 7.2 Duration: The Retirement Trust shall continue l ntil terminated by the vote of a
majority of the Public Employers, each C<lsting one Vute. Upon termination, all of the
Trust Property shall be paid OUt to the Public EmploYErs. Public Employer Trustees or
the trUstees or administrators of the Employer Trust>, as appropriate. .
Seaion 7.3 Amendment: The Retirement TruSt may be am.!Oded by the vote of a majority
of the Public Employers, each casting one Vote.
SectÎon-7:4 Procedure: A resolution to terminate or amend the Retirement Trust or to
remove a Trustee shall be submitted to a Vote of the Public Employers if: Ii) a majority
of the Trustees so direct, or; Iii) a petition requesting a vOte signed by nOt less than
25 percent.of the Public Employers, is submined to the TrUSte.es.
ARTICLE VIII. MISCELLANEOUS
Section 8.1 Governing law: Except as otherwise required by State or local law, this
Declaration of TruSt and the Retirement Trust hereby created shall be construed and
regulated by the laws of the District of Columbia.
Section 8.2 Counterparts: This Declaration may be executed by the Public: Employers and
Trustees in tWo or more counterparts. each of which shall be deemed an Driginal but
all of which together shall conStitute one and the same instrument.
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ICMA RETIREMENT CORPORATION
GOVERNMENTAL MONEY PURCHASE PLAN & TRUST
ADOPTION AGREEMENT
The Employer hereby establishes a Money Purchase Plan and Trust to be known as
C'.i tv of .Federal Way 4,O~(a.L~ecutive Plan
This Plan is an amendment and restatement of an existing defined contribution money
purchase plan. .
Yes
-L.
No
If yes, please specify the name of tl1e defined contnbution money purchase plan which
this Plan hereby amends and restates:
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I.
Employer:
Citv of Féderal Way
II.
The Effective Date of the Plan shall be the first day of the Plan Year during
which the Employer adopts the Plan, unless an alternate Effective Date is
hereby specified: 1/1/2000
fII.
Plan Year will mean:
("ið
The twelve (12) consecutive month period which coincides with
the limitation year. (See Section 5.04(i) of the Plan.)
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The twelve (12) consecutive month period commencing on
and each anniversary thereof.
IV.
Normal Retirement Age shall be age 59)llZ(not to exceed age 65).
MPp Adoption Agreement 03/251g8
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V.
ELIGIBILITY REQUIREMENTS:
1.
The following group or groups of Employees are eligible to participate
in the Plan:
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All Employees
All Full-TIme Employees
Salaried Employees
Non-union Employees
Management Employees
. ..PlJ~lic Safety Employees
General Employees
Other (specify below)
City Manager
, -.'. -.
The group specified must correspond to a group of the same
designation that is defined in the statutes, ordinances, rules,
regulations, personnel manuals or other material in effect in the state or
locality of the Employer.
2.
The Employer hereby waives or reduces the requirement of a twelve
(12) month Period of Service for participation. The required Period of
Service shall be ~ (write NfA if an Employee is eligible to participate
upon employment).
~
If this waiver or reduction is elected, it shall apply to all Employees
within the Covered Employment Classification.
3.
A minimum age requirement is hereby specified for eligibility to
participate. The minimum age requirement is...1l..LA...- (not to exceed
age 21. Write N/A if no minimum age is declared.)
VI.
CONTRIBUTION PROVISIONS
1,
The Employer shall contribute as follows (choose one):
()
Fixed Employer Contributions With Or Without
Mandatory Participant Contributions.
MPP Adoption Agreement 03/25/98
The Employer shall contribute on behalf of each Par-
ticipant - % of Earnings or $c..8.,..O1lðor the Plan Year
(subject to the limitations of Article V of the Plan). Each
Participant is required to contribute - % of Earnings
or $...=Q::. for the Plan Year as a condition of participation
in the Plan, (Write "0" if no conYibution is required.) If
Participant Contributions are required under this option. a
12/21/99 15: 55 FAX
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()
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~14
Participa.nt shall not have the right to discontinue or vary
the rate of such contributions after becoming a Plan
Participant.
The Employer hereby elects to "pick up" the.
Mandatory/Required Participant Contribution.
-L
Yes
No
[Note to Employer: A determination letter issued to an
..adopting [::mployer is not a ruling by the Internal Revenue
Service that Participant contributions that are picked up
by the Employer are not includable in the Participant's
gross income for federal income tax purposes. The
Employer may seek such a ruling.
Picked up contributions are excludable from the
Participant's gross income under section 414(h)(2) of the
Internal Revenue Code of 1986 only if they meet the
requirements of Rev. Rul. 81-35, 1981-1 C.B. 255. Those
requirements are (1) that the Employer must specify that
the contributions, although designated as employee
contributions, are being paid by the Employer in lieu of
contributions by the employee; and (2) the employee
must not have the option of receiving the contributed
amounts directly instead of having them paid by the
Employer to the plan.]
()
Fixed Employer Match of Participant Contributions.
N/A
The Employer shall contribute on behalf of each
Participant_% of Earnings for the Plan Year (subject to
the limitations of Article V of the Plan) for each Plan Year
that such Participant has contributed _% of Earnings
or $_. Under this option, there is a single, fixed rate of
Employer contributions. but a Participant may decline to
make the required Participant contributions in any Plan
Year, in which case no Employer contribution will be
made on the Participant's behalf in that Plan Year.
Variable Employer Match Of Participant Con-
tributions.
N/A
The Employer shall contribute on behalf of each Par-
ticipant an amount determined,as follows (subject to the
limitations of Article V of the Plan):
MPP Adoption Agreement 03/25/9B
1L/~1I99 15:55 FAX
(
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- % of the contributions made by the Participant for
the Plan Year (not including Participant contributions
exceeding _% of Eamings or $ );
PLUS - % of the contributions made by the
Participant for the Plan Year in excess of those included
in the above paragraph (but not including Participant
contributions exceeding in the aggregate - % of
Earnings or $ \.
'~ ""',-
Employer Contributions on behalf of a Participant for a
Plan Year shall not exceed $ or % of
. Eamings. whichever is - m~ I~
2.
Each Participant may make a voluntary (unmatched), after-tax contri-
bution, subject to the limitations of Section 4.05 and Article V of the
Plan.
4--
Yes
No
3.
Employer contributions and Participant contributions shall be
contributed to the Trust in accordance with the fallowing payment
schedule:
bimonthly pay schedule
VII.
EARNINGS
Earnings, as defined under Section 2.09 of the Plan" shall include:
(a)
Overtime
Yes
.....L
No
(b)
Bonuses
Yes
.......x..
No
VIII.
LIMITATION ON ALLOCATIONS
If the Employer maintains or ever maintained another qualified plan in which
any Participant in this Plan is (or was) a participant or could possibly become
a participant. the Employer hereby agrees to limit cpntributions to all such
MPP Adoption Agreement 03/25/98
4
'-. c.c."" J.5:55 FAX
;
3.
(
~16
(
plans as provided herein. if necessary in order to avoid excess contributions
(as described in Sections 5.02 and 5.03 of the Plan).
1.
If the Participant is covered under another qualified defined contribution
plan maintained by the Employer, the provisions of Section.5.02(a)
through (f) of the Plan will apply unless another method has been
indicated below.
()
RIA
Other Method. (Provide the method under which the
plans will limit total Annual Additions to the Maximum
. .Permissible Amount, and will properly reduce any excess
amounts, in a manner that precludes Employer
discretion.)
2.
If the Participant is or has ever been a participant in a defined benefit
plan maintained by the Employer. and if the limitation in Section 5.03 of
the Plan would be exceeded, then the Participant's Projected Annual
Benefit under the defined benefit plan shall be reduced in accordance
with the terms thereof to the extent necessary to satisfy such Jimitation.
If such plan does not provide for such reduction. or if the limitation is
still exceeded after the reduction, annual additions shall be reduced to
the extent necessary in the manner described in Sections 5.02 and
5.02. The methods of avoiding the limitation described in this
paragraph will not apply if the Employer indicates another method
below.
()
RIA
Other Method. (Note to Employer: Provide below
language which will satisfy the 1.0 limitation of section
415(e) ofthe Code. Such language must preclude
Employer discretion. See section 1.415-1 of the
Regulations for guidance.}
The limitation year is the following 12-consecutive month period:Jall::- DeR
MPP Adoption Agreement 03/25/98
X.
~
XI.
XII.
XIII.
XIV.
"~; L1;"" 10; 55 FAX
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1i!117
IX.
VESTING PROVISIONS
The Employer hereby specifies the following vesting schedule, subject to (1)
the minimum vesting requirements as noted and (2) the concurrence of the
Plan AdmInistrator.
Years of
Service
Completed
Percent
VestinQ
. Zero
One
Two
Three
Four
Five
Six
Seven
Eight
Nine
Ten
~. ,....~-
...!Q!L %
~%
_%
_%
_%
_%
_%
%
==%
_%
_%
loans are permitted under the Plan, as provided in Article XII/:
Yes
-L No
The Employer hereby attests that it is a unit of state or local govemment or an
agency or instrumentality of one or more units of state or local government.
The Plan Administrator hereby agrees to inform the Employer of any
amendments to the Plan made pursuant to Section 14.05 of the Plan or of the
discontinuance or abandonment of the Plan.
The Employer hereby appoints the ICMA Retirement Corporation as the Plan
Administrator pursuant to the terms and conditions of the ICMA RETIREMENT
CORPORATION GOVERNMENTAL MONEY PURCHASE PLAN & TRUST.
The Employer hereby agrees to the provisions of the Plan and Trust.
The Employer hereby acknowledges it understands that failure to properly fill
out this Adoption Agreement may result in disqualifrcation of the Plan.
MPP Adoption Agreement 03/25/98
6
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xv.
An adopting Employer may not rely on a determination letter issued by the
National or District Office of the Internal Revenue Service as evidence that the
Plan is qualified under section 401 of the Internal Revenue Code. In order to
obtain reliance with respect to plan qualification. the Employer must apply to
the appropriate key district office for a determination letter.
In Witness Whereof, the Employer hereby causes this Agreement to be executed on
this 21st day of December , 192.2...
EMPLOYER.
By;
-Ron Gintz
-.' --- .~-~- .ICMARETIREMENTCORPORATfON
By;
Title' Mayor
"/j/
. . .da~ r~~ Attest
á«zJ . . '>¡ ,C2£::æ.. ~ ~ c.
.~~
.:: " -?
Title;
.,
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MPP Adoption Agreement 03/25/98
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~.._. .-
ADMINISTRATIVE SERVICES AGREEMENT
~
Type: 401
Account Number: 7222
,.
-
Plan HC 22
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ADMINISTRATIVE SERVICES AGREEMENT
This Agreement, made as of the Jß 1h day of ~
, 199"1, (herein referred to as the "Inception Date"), between The International
City Management Association Retirement Corporation ("RC"), a nonprofif corporation
organized and existing under the laws of the State of Delaware; and the City of Federal
Way ("Employer") a City organized and existing under the laws of the State of
Washington with an office at 33530 1 st Way South, Federal Way, Washington
98003-6210.
Recitals
Employer acts as a public plan sponsor for a retirement plan ("Plan") with
responsibility to obtain investment alternatives and services for employees participating
in that Plan;
The ICMA Retirement Trust (the "Trust") is a common law trust governed
by an elected Board of Trustees for the commingled investment of retirement funds
held by state and local governmental units for their employees;
~
RC acts as investment adviser to the Trust; RC has designed, and the
Trust offers, a series of separate funds (the "Funds") for the investment of plan assets
as referenced in the Trust's principal disclosure document, "Making Sound Investment
Decisions: A Retirement Investment Guide." The Funds are available only to public
employers and only through the Trust and RC.
In addition to serving as investment adviser to the Trust, RC provides a
complete offering of services to public employers for the operation of employee
retirement plans including, but not limited to, communications concerning investment
alternatives, account maintenance, account record-keeping, investment and tax
reporting, form processing, benefit disbursement and asset management.
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Plan C 222
'I
Agreements
1.
ApDointment of RC
Employer hereby designates RC as Administrator of the Plan to perform
all non-discretionary functions necessary for the administration of the Plan' with respect
to assets in the Plan deposited with the Trust. The functions to be performed by RC
include:
(a) allocation in accordance with participant direction of individual
accounts to investment Funds offered by the Trust;
(b) maintenance of individual accounts for participants reflecting amounts
deferred, income, gain, or loss credited, and amounts disbursed as benefits;
(c) provision of periodic reports to the Employer and participants of the
status of Plan investments and individual accounts; .
(d) communication to participants of information regarding their rights
and elections under the Plan; and
(e) disbursement of benefits as agent for the Employer in accordance
with terms of the Plan.
:¡
2.
Adoption of Trust
Employer has adopted the Declaration of Trust of the ICMA Retirement
Trust and agrees to the commingled investment of assets of the Plan within the Trust.
Employer agrees that operation of the Plan and investment, management and
disbursement of amounts deposited in the Trust shall be subject to the Declaration of
Trust, as it may be amended from time to time and shall also be subject to terms and
conditions set forth in disclosure documents (such as the Retirement Investment Guide
or Employer Bulletins) as those terms and conditions may be adjusted from time to
time. It is understood that the term "Employer Trust" as it is used in the Declaration
of Trust shall mean this Administrative Services Agreement.
3.
EmDlover Dutv to Furnish Information
Employer agrees to furnish to RC on a timely basis such information as
is necessary for RC to carry out its responsibilities as Administrator of the Plan,
including information needed to allocate individual participant accounts to Funds in the
Trust, and information as to the employment status of participants, and participant
'go,. ,dd""" ""d "heo i:::¡::iO" Ii"dodi"g '"' id""ifi,"io"
-
...
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,- '
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Plan '( 122
numbers). RC shall be entitled to rely upon the accuracy of any information that is
furnished to it by a responsible official of the Employer or any information relating to
an individual participant or beneficiary that is furnished by such participant or
beneficiary, and RC shall not be responsible for any error arising from its reliance on
such information. RC will provide account information in reports, statements or
accountings.
4.
Certain ReDresentations Warranties and Covenants
RC represents 'and warrants to Employer that:
(a) RC is a non-profit corporation with full power and authority to enter
into this Agreement and to perform its obligations under this Agreement. The ability
of RC to serve as investment adviser to the Trust is dependent upon the continued
willingness of the Trust for RC to serve in that capacity.
(b) RC is an investment adviser registered as such with the Securities
and Exchange Commission under the Investment Advisers Act of 1940, as amended.
ICMA-RC Services, Inc. (a wholly owned subsidiary of RC) is registered as a broker-
dealer with the Securities and Exchange Commission (SEC) and is a member in good
standing of the National Association of Securities Dealers, Inc.
RC covenants with employer that:
j
.
(c) RC shall maintain and administer the Plan in compliance with the
requirements for plans which satisfy the qualification requirements of Section 401 of
the Internal Revenue Code; provided, however, RC shall not be responsible for the
qualified status of the Plan in the event that the Employer directs RC to administer the
Plan or disburse assets in a manner inconsistent with the requirements of Section 401
or otherwise causes the Plan not to be carried out in accordance with its terms;
provided, further, that if the plan document used by the Employer contains terms that
differ from the terms of RC's standardized plan document, RC shall not be responsible
for the qualified status of the Plan to the extent affected by the differing terms in the
Employer's plan document.
Employer represents and warrants to RC that:
(d) Employer is organized in the form and manner recited in the opening
paragraph of this Agreement with full power and authority to enter into and perform
its obligations under this Agreement and to act for the Plan and participants in the
manner contemplated in this Agreement: Execution, delivery, and performance of this
Agreement will not conflict with any law, rule, regulation or contract by which the
Employer is bound,or to which it is a party.
~
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Plan II( ~22
5.
Participation in Certain Proceedings
The Employer hereby authorizes RC to act as agent, to appear on its
behalf, and to join the Employer as a necessary party in all legal proceedings involving
the garnishment of benefits or the transfer of benefits pursuant to the divorce or
separation of participants in the Employer Plan. Unless Employer 'notifies RC
otherwise, Employer consents to the disbursement by RC of benefits that have been
garnished or transferred to a former Spouse, spouse or child pursuant to a domestic
relations order.
6,
Comoensation and Payment
(a) Plan Administration Fee. The amount to be paid for plan
administration services under this Agreement shall be 0.55% per annum of the amount
of Plan assets invested in the Trust. Such fee shall be computed based on average
daily net Plan assets in the Trust.
(b) Account Maintenance Fee. (I) There shall be an annual account
maintenance fee of $25.00. The account maintenance fee is payable in full on
January 1 of each year on each account in existence on that date. For accounts
established AFTER January 1, the fee is payable on the first day of the calendar
quarter following establishment and is prorated by reference to the number of calendar
quarters remaining on the day of payment.
(ii) The account maintenance fee will be waived beginning in the year
following the year in which total Plan assets exceed $4 million.
(c) Compensation for Management Services to the Trust and Advisory
and other Services to the Vantagepoint Funds. Employer acknowledges that in
addition to amounts payable under this Agreement, RC receives fees from the Trust
for investment management services furnished to the Trust. Employer further
acknowledges that certain wholly-owned subsidiaries of RC receive compensation for
advisory and other services furnished to the Vantagepoint Funds, which serve as the
underlying portfolios of a number of Funds offered through the Trust. The fees
referred to in this subsection are disclosed in the Retirement Investment Guide. These
fees are not assessed against assets invested in the Trust's Mutual Fund Series.
(d) Mutual Fund Services Fee. There is an annual charge of 0.40%
assessed against average daily net Plan assets invested in the Trust's Mutual Fund
Series.
(e) Model Portfolio Fund Fee. There is an annual charge of 0.10%
assessed against daily average net Plan assets invested in the Trust's Model Portfolio
~
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Plan #(::22
Funds.
(f) Payment Procedures. (i) All payments to RC pursuant to this Section
6(a), (d) and (e) shall be paid out of the Plan assets held by the Trust and shall be paid
by the Trust. The amount of Plan assets held in the Trust shall be adjusted by the
Trust as required to reflect such payments. (ii) All payments to RC pursuant to
Section 6(b) shall be paid directly by Employer, and shall not be deducted from Plan
Assets held by the Trust.
7.
Custody
Employer understands that amounts invested in the Trust are to be
remitted directly to the Trust in accordance with instructions provided to Employer by
RC and are not to be remitted to RC. In the event that any check or wire transfer is
incorrectly labeled or transferred to RC, RC will return it to Employer with proper
instructions.
8.
Responsibility
RC shall not be responsible for any acts or omissions of any person other
than RC in connection with the administration or operation of the Plan.
9.
Term
This Agreement may be terminated without penalty by either party on
sixty days advance notice in writing to the other.
10.
Amendments and Adjustments
(a) This Agreement may not be amended except by written instrument
signed by the parties.
(b) The parties agree that compensation for services under this
Agreement and administrative and operational arrangements may be adjusted as
follows:
RC may propose an adjustment by written notice to the Employer given
at least 60 days before the effective date of the adjustment and the notice may appear
in disclosure documents such as Employer Bulletins and the Retirement Investment
Guide. Such adjustment shall become effective unless, within the 60 day period
before the effective date the Employer notifies RC in writing that it does not accept
such' adjustment, in which event the parties will negotiate with respect to the
adjustment.
~
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Plan ('222
(c) No failure to exercise and no delay in exercising any right, remedy,
power or privilege hereunder shall operate as a waiver of such right, remedy, power
or privilege.
11.
~
All notices required to be delivered under Section 10 of this Agreement
shall be delivered personally or by registered or certified mail, postage prepaid, return
receipt requested, to Ii) Legal Department, ICMA Retirement Corporation, 777 North
Capitol Street, N.E., Suite 600, Washington, D.C, 20002-4240; (ii) Employer at the
office set forth in the first paragraph hereof, or to any other address designated by the
party to receive the same by written notice similarly given.
12.
Complete Aqreement
This Agreement shall constitute the sole agreement between RC and
Employer relating to the object of this Agreement and correctly sets forth the complete
rights, duties and obligations of each party to the other as of its date. Any prior
agreements, promises, negotiations or representations, verbal or otherwise, not
expressly set forth in this Agreement are of no force and effect.
13.
Governing Law
.
This agreement shall be governed by and construed in accordance with
the laws of the State of Washington applicable to contracts made in that jurisdiction
without reference to its conflicts of laws provisions.
~
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Plan # {22
In Witness Whereof, the parties hereto have executed this Agreement as
of the Inception Date first above written.
CITY OF FEDERAL WAY
bY:~~..u.....
Signa relDate
1).jJ-&/q'j
(\IV.Ln¡ Y\'1t-1;)°<L5A../, UuW\ÚN\ ~Soun~ fJ1£<....1Cfp>-
Name and Title (Please Print)
INTERNATIONAL CITY MANAGEMENT
ASSOCIATION RETIREMENT
CORPORATION
by:
Paul Galiagher/Date
Corporate Secretary
~