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HomeMy WebLinkAboutResolution 96-35 09/03/1996 . . . 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 . . . 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: Page 2--CITY OF SPRINGFIELD RESOLUTION NO. 96-35 . "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: . "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 . Page 3--CITY OF SPRINGFIELD RESOLUTION NO. 96-35 . 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: . "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 . "(b) to sell, exchange, convey, transfer, partition, grant options with respect to, lease for any term (even though such term extends beyond the duration Page 4--CITY OF SPRINGFIELD RESOLUTION NO. 96-35 . 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; . 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; . Page 5--CITY OF SPRINGFIELD RESOLUTION NO. 96-35 . "(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. . "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: . Page 6--CITY OF SPRINGFIELD RESOLUTION NO. 96-35 . . . "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: Page 7--CITY OF SPRINGFIELD RESOLUTION NO. 96-35 . . . "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: Page 8--CITY OF SPRINGFIELD RESOLUTION NO. 96-35 . . . "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 Page 9--CITY OF SPRINGFIELD RESOLUTION NO. 96-35