HomeMy WebLinkAboutResolution 96-35 09/03/1996
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SPRINGFIELD
NO. 96- 35
A RESOLUTION OF THE CITY OF SPRINGFIELD AMENDING THE CITY OF
SPRINGFIELD, OREGON MONEY PURCHASE PENSION PLAN AND TRUST;
APPOINTING AN INVESTMENT MANAGER UNDER SUCH TRUST; AND AMENDING THE
CITY OF SPRINGFIELD, OREGON RETIREMENT PLAN
WHEREAS, May 15, 1995 the Common Council of the City of
Springfield, by Resolution No. 95-42, adopted the City of
Springfield, Oregon Money Purchase Pension Plan (the "Pension
Plan") and the City of Springfield, Oregon Money Purchase Pension
Plan Trust (the "Trust") and restated the City of Springfield,
Oregon Retirement Plan (the "Retirement Plan"); and
WHEREAS, Sections 4.1 and 4.4 of the Trust authorize the
Common Council of the City of Springfield to appoint one or more
Investment Managers to manage and direct the investment of all or
any specified portion of the Trust Fund; and
WHEREAS, June 17, 1996 the City of Springfield,
No. 96-26, appointed Union Bond & Trust Company as
Manager as provided in the Stable Value Fund
Agreement attached to Resolution No. 96-26; and
by Resolution
an Investment
Participation
WHEREAS, the City of Springfield desires to appoint Wells
Fargo Bank, N.A. as an additional Investment Manager; and
WHEREAS, the City of Springfield desires
Participants to direct the investment of
Contribution Accounts in the Pension Plan; and
to allow vested
their Employer
WHEREAS, the Oregon Supreme Court declared Oregon Ballot
Measure 8 void; and
WHEREAS, the City of Springfield desires to amend the Pension
Plan and Trust and the Retirement Plan to reflect the decision of
the Oregon Supreme Court and to make other changes associated with
appointment of Wells Fargo Bank, N .A. as investment manager and
with Participants' direction of the investment of their Employer
Contribution Accounts in the Pension Plan; and
WHEREAS, December 19, 1994 the Common Council of the City of
Springfield, by Resolution No. 94 - 91 i continued to pick up non-
represented employees' contributions to PERS pursuant to former ORS
237.071 and 237.075; and
WHEREAS, former ORS 237.071 and 237.075 are now ORS 238.200
and 238.205, respectively;
WHEREAS, the City of Springfield desires to restate its intent
to pick up non-represented employees' contributions to PERS;
Page 1--CITY OF SPRINGFIELD RESOLUTION NO. 96-35
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NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Springfield as follows:
Section 1. Pursuant to Sections 4.1 and 4.4 of the Trust,
Wells Fargo Bank, N.A. is appointed Investment Manager to manage
and direct the investment of the Trust Fund other than the portions
of the Trust Fund invested in the Stable Value Fund maintained by
Union Bond & Trust Company or invested at the direction of
Participants pursuant to Section 4.1 of the Trust. Pursuant to
Sections 4.1 and 4.4 of the Trust, Wells Fargo Bank, N.A. also is
appointed Investment Manager, to manage and direct the investment
of the Trust Fund, with respect to the decision whether to invest
in the Stable Value Fund that portion of the Trust Fund not
invested at the direction of Participants pursuant to Section 4.1
of the Trust. This appointment shall be effective upon the date
provided in the agreement referred to in Section 2 of this
Resolution.
Section 2. The City Manager is directed to negotiate and
execute an agreement with Wells Fargo Bank, N .A. under which it
assumes the office of Investment Manager as provided in this
Resolution.
Section 3. The following amendments are made to the Pension
Plan effective as provided below.
a. Section 5.3 of the Pension Plan is amended to read as
follows, effective for Plan Years beginning after June 3D, 1996:
"5.3 As of each Valuation Date, the Plan
Administrator shall allocate to each of the accounts of
the Participants that are invested, as of that Valuation
Date, at the direction of the Participant, the following
items occurring with respect to the interest of the
account in the fund or funds in which the account is so
invested:
"a. The net income or net loss of the account
accrued or actually realized or suffered since the last
Valuation Date.
"b. The unrealized net increase or net
decrease in the fair market value of the assets of the
account since the last Valuation Date."
b. Section 5.4 of the Pension Plan is amended to read as
follows, effective July 1, 1995:
"5.4 As of each Valuation Date, the Plan
Administrator shall allocate among each of the accounts
described in Section 12.3 the following:
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"a. The net income or net loss of the Policy
accrued or actually realized or suffered since the last
Valuation Date.
"b. The unrealized net increase or net
decrease in the fair market value of the Policy since
the last Valuation Date.
"This allocation shall be made to each such account in
the ratio that the balance of the account at the
preceding Valuation Date bears to the balance of all
such accounts at the preceding Valuation Date. However,
for the first Valuation Date such balances shall be at
the first Valuation Date."
c. Section 5.5 of the Pension Plan is amended to read as
follows, effective for Plan Years beginning after June 30, 1996:
"5.5 As of each Valuation Date, the Plan
Administrator shall allocate among each of the accounts
of the Participants, other than the accounts described
in Section 12.3 and the accounts that are invested, as
of that Valuation Date, at the direction of the
Participant, the following:
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"a. The net income or net loss of the Trust
accrued or actually realized or suffered since the last
Valuation Date and not allocated under Section 5.3 or
Section 5.4.
"b. The unrealized net
decrease in the fair market value of
Trust since the last Valuation Date
under Section 5.3 or Section 5.4.
increase or net
the assets of the
and not allocated
"This allocation shall be made to each
the ratio that the balance of the
preceding Valuation Date bears to the
such accounts at the preceding Valuation
such account in
account at the
balance of all
Date."
d. Section 5.6 of the Pension Plan is amended to read as
follows, effective for Plan Years beginning after June 30, 1996:
"5.6 As of each Valuation Date the Plan
Administrator shall allocate among the accounts of the
Participants the expenses of the Plan Administrator and
committee since the last Valuation Date and the
compensation, expenses, taxes and charges of the Trustee
since the last Valuation Date. This allocation shall be
made in the ratio that the balance of each Participant's
account at the preceding Valuation Date bears to the
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Page 3--CITY OF SPRINGFIELD RESOLUTION NO. 96-35
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balance of all Participants' accounts (determined in the
same manner as for each individual Participant) at the
preceding Valuation Date. Compensation, expenses, taxes
and charges of the Trustee shall be allocated only among
accounts other than the accounts described in Section
12.3. Expenses of the Plan Administrator and committee
that the Plan Administrator determines are attributable
to accounts other than the accounts described in Section
12.3, or only to the accounts described in Section 12.3,
shall be allocated only among such accounts to which the
expenses are attributable."
e. Section 5.7 of the Pension Plan is amended to read as
follows, effective October 1, 1996:
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"5. 7 Each Participant may direct the
investment of the Participant's accounts, other than the
Employer Contribution Account and the accounts described
in Section 12.3, among the investment alternatives made
available by the Plan Administrator to the Participants.
Additionally, each Participant who has a fully vested
and nonforfeitable interest in the balance of the
Participant I s Employer Contribution Account may direct
the investment of that account among the investment
alternatives made available by the Plan Administrator to
the Participants. Such investment decision shall be
conveyed to the Plan Administrator who may adopt
procedures permitting Participants to convey their
investment instructions directly to the transfer agent
or any collective investment fund made available to the
Participants. The Plan Administrator may, from time to
time, establish uniform, nondiscretionary rules with
respect to the frequency or times at which changes in
the investment media available to Participants may be
made."
Section 4. Section 4.3 of the Trust is amended to read as
follows, effective upon the date Wells Fargo Bank, N.A. assumes the
office of Investment Manager as provided in this Resolution:
"4.3 Trustees I Administrative Powers. Except as
otherwise provided elsewhere in the Trust, the Trustees
shall have the following powers, rights and duties in
addition to those provided elsewhere in the Trust or by
law:
"(a) to retain, manage, improve, repair,
insure, operate and control any asset of the Trust Fundi
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"(b) to sell, exchange, convey, transfer,
partition, grant options with respect to, lease for any
term (even though such term extends beyond the duration
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of this Trust or commences in the future), mortgage,
pledge, abandon, or otherwise deal with or dispose of
any asset of the Trust Fund in such manner, for such
consideration and upon such terms and conditions as the
Trustees shall determine and no person dealing with the
Trustees shall be required to monitor the application of
the purchase money or to inquire into the validity,
expediency or propriety of any such sale or other
disposition;
n (c) to employ such accountants, actuaries,
attorneys and agents as may be reasonably necessary in
collecting, managing, administering, investing, distri-
buting and protecting the Trust Fund or the assets
thereof;
n(d) to settle, submit to arbitration,
compromise, contest, prosecute or abandon claims and
demands in favor of or against the Trust Fund;
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n(e) to borrow or raise monies for the purpose
of the Trust Fund (except from themselves, the Employer,
a fiduciary or any party in interest) in such amount,
and upon such terms and conditions as the Trustees deem
advisable, and for any sum so borrowed to issue its
promissory note as Trustees and secure the repayment
thereof by pledging or mortgaging all or any part of the
Trust Fund upon such terms and conditions as the
Trustees may deem desirable; and no person lending money
to the Trustees shall be bound to monitor the
application of the money loaned or inquire into the
validity, expediency or propriety of any such borrowing;
n (f) to vote any corporate stock either in
person or by proxy for any purpose; to exercise any
conversion privilege, subscription right or any other
right or option given to the Trustees as the owner of
any asset of the Trust Fund and to make any payments
incidental thereto; to consent to, to dissent from and
to oppose or take any action in connection with, and
receive and retain any securities resulting from any
reorganization, consolidation, merger, readjustment of
the financial structure, sale, lease or other disposi-
tion of the assets of any corporation or other organi-
zation, the securities of which may be an asset of the
Trust Fund;
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"(g) to organize and incorporate (or partici-
pate in the organization or incorporation of) under the
laws of any state, a corporation for the purpose of
acquiring and holding title to any property which the
Trustees are authorized to acquire for the Trust Fund
and to exercise with respect thereto any of the powers,
rights and duties they have with respect to other assets
of the Trust Fund;
"(h) to cause any asset of the Trust Fund to
be issued, held or registered in its name or in the name
of its nominee, or in such form that title will pass by
delivery, provided the records of the Trustees shall
indicate the true ownership of such asset; and
"(i) to exercise any of the powers and rights
of an individual owner with respect to any property of
the Trust Fund and to perform any and all other acts in
their judgment necessary or appropriate for the proper
administration of the Trust Fund, although such powers,
rights and acts are not specifically enumerated in the
Trust; provided, however, that the Trustees or
discretionary fiduciary shall not enter into any
transaction which is prohibited by the Code or the
regulations promulgated thereunder.
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"The voting of proxies for securities held by the Trust
is the responsibility of the Plan Administrator. The
Trustee is not responsible for the voting of proxies.
The Trustee shall make its best effort to timely deliver
proxies to the Plan Administrator. The Trustee may use
agents, including the ADP Financial Information
Services, Inc. or its successors or assigns, to effect
such delivery. Trustee shall not be responsible to
ascertain whether, or how, the proxies were subsequently
voted or disposed of and shall bear no liability for the
actions or inactions of parties responsible to vote
proxies."
Section 5. The following amendments are made to the Pension
Plan effective for compensation earned after May 31, 1996.
a. Section 2.15 of the Pension Plan is amended to read as
follows:
"2.15Pick-up Account: The Participant's account as
described in Section 4.2 b."
b. Section 4.2 of the Pension Plan is amended to read as
follows:
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"4.2 The Employer shall contribute to the Plan
on behalf of each Participant each month a sum equal to
the following:
"a. An Employer contribution to be allocated
to the Participant's Employer Contribution Account equal
to seven percent (7%) of the Participant's Monthly
Earnings for each Participant who is a full-time
employee (as detennined in the sole discretion of the
Employer) and for the Presiding Municipal Court Judge.
"b. For Participants for whom Section 4.2 a.
requires a contribution, an additional Employer
contribution to be allocated to the Participant's
Pick-up Account based on the Participant's Monthly
Earnings as follows:
"Monthly Earninqs Contribution Percentage
"Less than $1,500 6%
"Equal to or more than $1,500 7%"
c. Section 4.4 of the Pension Plan is amended to read as
follows:
"4.4 No amount forfeited by a Participant as
hereinafter provided shall be applied to increase the
benefits of any Participant or beneficiary. Amounts so
forfeited shall reduce pro tanto the ~ount of the
Employer's contribution next falling due under the
provisions of the Plan as provided in Section 4.2 a.,
and shall be allocated as part of the Employer
contribution to be allocated as provided in Section 4.2
a. "
d. Section 4.6 and Exhibit A of the Pension Plan are
deleted.
Section 6. The following amendments are made to the
Retirement Plan effective for compensation earned after May 31,
1996.
a. Section 2.5 of the Retirement Plan is amended to read as
follows:
"2.5 Employee Required Contribution Account:
The Participant's account attributable to required
contributions made to the Plan pursuant to the
predecessor plan."
b. , Section 2.15 of the Retirement Plan is amended to read
as follows:
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"2.15Pick-up Account: The Participant's account as
described in Section 4.2 b."
c. Section 4.2 of the Retirement Plan is amended to read as
follows:
"4.2 The Employer shall contribute to the Plan
on behalf of each Participant each month a sum equal to
the following:
"a. An Employer contribution to be allocated
to the Participant's Employer Contribution Account equal
to the following:
" (1) The allocation required by Section
4.7 for Public Safety Employees,
"(2) Ten percent (10%) of the
Participant's Monthly Earnings for Police Dispatchers
and Property Controllers who are full-time employees (as
determined in the sole discretion of the Employer), or
" (3) Seven percent (7%) of the
Participant's Monthly Earnings for all other
Participants who are full-time employees (as determined
in the sole discretion of the Employer) and for the
Presiding Municipal Court Judge, the City Attorney, and
the Assistant City Attorneys.
"b. For Participants for whom Section 4.2 a.
requires a contribution, an additional Employer
contribution to be allocated to the Participant's
Pick-up Account based on the Participant's Monthly
Earnings as follows:
"Monthly Earnings Contribution Percentage
"Less than $1,500 6%
"Equal to or more than $1,500 7%
"c. If earnings under the Policy are
inadequate to provide for the credited rate of return as
specified in Section 7.3 and the reserve fund specified
in Section 7.4 is inadequate, the Employer shall make an
additional contribution in such amount as to provide the
minimum credited rate of return provided for in Section
7.3. "
d. Section 4.4 of the Retirement Plan is amended to read as
follows:
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"4.4 No amount forfeited by a Participant as
hereinafter provided shall be applied to increase the
benefits of any Participant or beneficiary. Amounts so
forfeited shall reduce pro tanto the amount of the
Employer's contribution next falling due under the
provlslons of the Plan as provided in Section 4.2 a. or
at the discretion of the Employer shall be retained
unallocated in the Plan to provide a reserve for
earnings pursuant to Section 7.4; provided, however,
that in the event of a tennination of this Plan any
amounts remaining unallocated after satisfaction of all
liabilities to the Participant shall revert to the
Employer."
e. Section 4.8 and Exhibit C of the Retirement Plan are
deleted.
Section 7. The City Manager is directed to prepare and
execute restatements of the Pension Plan and Trust and of the
Retirement Plan incorporating the amendments to the Pension Plan
and Trust and the Retirement Plan made in this Resolution and also
incorporating the effective dates of those amendments.
Section 8. On behalf of each employee who is not in a
collective bargaining unit and who is or becomes a member of PERS,
the employee contributions required by ORS. 238.200, although
designated as employee contributions, will be paid by the City to
PERS pursuant to ORS 238.205, in lieu of such contributions by the
employee. The employee does not have the option of choosing to
receive the contributed amounts directly, and paying the employee
contribution directly, instead of having the contributed amounts
paid by the City to PERS. Such contributions are deemed to be
"picked up" for purposes of Internal Revenue Code ~ 414(h) (2).
ADOPTED by the Common Council and approved by the Mayor of the
City of Springfield this 3rd day of September, 1996.
ADOPTED by a vote of 5 for and 0 against.
8;/f7f~/d
Mayor
ATTEST:
1~
City Record r
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