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HomeMy WebLinkAbout13405 ORD - 09/22/1976AN ORDINANCE AUTHORIZING ESTABLISHMENT OF A DEFERRED COMPENSATION PLAN FOR CITY EMPLOYEES WHEREAS, Article 6252 -3B, V.T.C.S. (Senate Bill No. 872, 63rd Texas Legislature), authorizes cities or towns in Texas to, by contract, agree with any employee, to defer, in whole or in part, any portion of the employees' compensation; and WHEREAS, it is the desire of the City Council of Corpus Christi to establish a deferred compensation plan, so that all employees of the City of Corpus Christi wishing to do so may take advantage of its provisions, NOW,THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI: SECTION 1. The Director of Finance is hereby authorized to establish and administer a Deferred Compensation Plan for the City of Corpus Christi. Under this plan, any permanent, full -time employee of the City of Corpus Christi shall have the right to defer any portion of his compensation and to have such deferred portion credited to a separate account. SECTION 2. The specific details of the Deferred Compensation Plan authorized above shall be as follows: A. During the initial year of the Deferred Compensation Plan employees desiring to become a participant must do so within a reasonable time after the Plan becomes effective. B. During subsequent years of the Deferrred Compensation Plan, employees must join the Plan prior to the beginning of the calendar year in which it is to become effective. C. Any agreement to defer compensation may be modified to change the amount deferred, but such modification must be made prior to the 1 ' beginning of the calendar year in which it is to become effective. D. The City shall withhold the amount indicated by the employee, and shall credit such amount to an account established in the name of each individual employee. E. Until termination of the employee's employment relationship with the J.3405 MICROFILMED (JUN 3 01980 City of Corpus Christi for any reason, all funds in this account, together with all interest and increments accrued thereon, shall belong solely to the City of Corpus Christi and all such funds shall at all times be available to the City to be used for any purpose desired by the City. The employee shall have no vested rights in the compensation de- ferred under the terms of this Plan. F. City may cause all funds credited in such account to be invested and reinvested as with other City funds including investment in direct obligations of the U. S. Government, obligations of the U. S. Govern- ment agencies, accounts and certificates of deposit of banks and savings and loan associations up to the maximum amount of insurance provided by the Federal Deposit Insurance Corporation (FDIC) or the Federal Savings and Loan Insurance Corporation (FSLIC). G. City shall'not otherwise be liable to any employee participating in this Plan, for any loss suffered in carrying out the provisions of the Deferred Compensation Agreement. H. The right to receive benefit payments hereunder may not be antici- pated, commuted, transferred, assigned or otherwise encumbered. The rights of the employee'hereunder and of any beneficiary of the employee shall be solely those of an unsecured creditor of the City of Corpus Christi. I. All Funds in the Account will be paid to the employee or his bene- ficiaries on the happening of any of the following events: 1. Normal, early or postponed•retirement of employee. 2. Death of the employee. 3. Termination of employee's employment with the City. In connection with the retirement or termination of employee, payments of the amounts to be paid under the payment plan selected by the employee shall commence on the last day of the second month following the date of retirement or termination of the employee. In connection with the death of employee, payments to be paid shall commence on the last day of the first full month following the date 2 of employee's death. J. The employee must elect one of the following alternative methods of payment for each of the events as set out in Section 21 at the time of entry into the Deferred Compensation Plan. Such an election is irrevocable during the employee's participation in the Plan. 1. Lump sum payment. 2. Installment payments over a period of 60 months to a maximum of 240 months, but should the employee not live-to receive the number of installment payments selected, the balance, if any, to be paid to the employee's beneficiary. 3. Installment payments of equal or nearly equal monthly amounts for not more than the remaining years of his life expectancy in accordance with standard mortality tables recognized for that purpose by the Director of Finance or his designated represen- tative, in amounts such that the participating employee's account balance will be liquidated as for the final payment. Should the participating employee die prior to the exhaustion of his account, the balance shall- go to his beneficiary. K. There is hereby created an "Advisory Committee ", composed of the Director of Finance or his representative, the Director of Personnel or his representative, and the City Attorney or his representative. The function of this Committee shall be to make a review and analysis at such reasonable intervals as may be required to satisfy the Committee that the Deferred Compensation Plan of the City of Corpus Christi is being operated and administered in a manner reason- ably calculated to accomplish its objectives, and to recommend to the City corrective measures which may be indicated. The Advisory Committee shall also determine upon application of a participant in the Plan, whether to grant or deny such application for withdrawal of funds due to serious personal financial hardship. For reasons of serious personal financial hardship, beyond the 3 control of the employee, an employee may request that all or part of the Account be paid to him immediately in a lump sum payment. The Advisory Committee, at its sole discretion, shall determine if the request is to be granted. The Advisory Committee may only grant a request for withdrawal equal to the amount necessary to meet the serious personal financial hardship. This withdrawal may not exceed the amount of accrued benefits. Any employee allowed to withdraw his account is deemed to have term- inated his participation in the Plan. He may again become a partici- pant in the calendar year following his withdrawal by entering into a new agreement with the City, prior to commencement of said calen- dar year. SECTION 3. The Director of Finance is hereby authorized to execute, on behalf of the City of Corpus Christi, a "Deferred Compensation Agreement" with any full -time permanent employee of the City of Corpus Christi who desires to defer a portion of his compensation finder the terms of the City's Deferred Compensation Plan. Such "Deferred Compensation Agreement" shall be substantially according to the terms of "Exhibit A" attached hereto, made a part thereof for all purposes. SECTION 4. The Deferred Compensation Plan established herein shall become effective on PASSED AND APPR D THIS oZ day of , 19 ATTEST: Secre ary APPROV D: / ,2 h DAY 0 1976 J. BRUCE AYCOCK, CITY ATTORNEY Assistant Citf Attorney MAYOR F {0: 0W THE CITY OF °CORPUS RISTI, TEXAS 4 STATE OF TEXAS X X DEFERRED COMPENSATION AGREEMENT COUNTY OF NUECES THIS AGREEMENT, entered into by and between the City of Corpus Christi, a Texas municipal corporation, acting herein by and through its Director of Finance pursuant to Ordinance No. of , 19 and , a full -time, permanent employee of the City of Corpus Christi (hereinafter called "Employee "), W I T N E S S E WHEREAS, Article 6252 -3B, V.T.C.S., enacted by the 63rd Texas Legis- lature, authorizes cities or towns in Texas to establish and administer a Deferred Compensation Plan; and WHEREAS, pursuant to Ordinance No. of 19_, such a program was established for employees of the City of Corpus Christi, NOW, THEREFORE, The Parties to this Agreement Do Hereby Agree with Each Other as Follows: I. Effective upon the commencement of the first complete pay period following execution of this Agreement, City will commence to compensate Employee for his services in the form of both current and deferred compensation. The amount of such deferred compensation shall be $ per pay period. The amount of Employee's current compensation may be adjusted from time to time without altering the terms of this agreement. The deferred portion of Employee's compensation must be changed prior to the beginning of the calendar year in which it is to become effective, and shall become effective on the first day of such calendar year. II. The amount indicated by Employee as deferred compensation will not be paid to such employee as it is earned. Rather, City will create and credit to a special account on its books (hereinafter referred to as the "account "), the amounts of deferred compensation. The first such credit will be made upon completion of the first full pay period following execution of this Agreement, and subsequent credits will be made for each pay period thereafter, until Employee's employment relation- ship with City is terminated for any reason. III. All funds in the account, together with all interest and incre- ments accrued thereon, shall belong solely to the City of Corpus Christi. Neither Employee or any beneficiary thereof shall have any interest whatsoever in such funds, until such time as the funds are distributed to Employee or beneficiary thereof in accordance with the provision of this Agreement. IV. City may cause all funds credited in such account to be invested and reinvested, as with other City funds including investment in direct obligations of the U. S. Government, obligations of U. S. Government agencies, accounts and certificates of deposit of banks and savings and loan associations up to the maximum amount of insurance provided by the Federal Deposit Insurance Corporation (FDIC) or the Federal Savings and Loan Insurance Corporation (FSLIC). Employee specifically agrees that City shall not be liable to Employee for any loss suffered in carrying out the provisions of this Agreement. V. Employee may not anticipate, commute, transfer, assign or other- wise encumber the right to receive benefit payments hereunder. The rights of Employee hereunder, and of any beneficiary or legal representative of Employee's estate, shall be solely those of an unsecured creditor of City. VI. Upon the happening of any of the events set out below, the Employee, his designated beneficiaries, or legal representatives of his estate is /are en- titled to receive payments'of funds in the Deferred Compensation account. The - events referred to above are: 1. Normal, early or postponed retirement of Employee. 2.' Death of Employee. 3. Termination of Employee's employment with the City. VII. The Employee must elect one of the following methods of payment for each of the events as set out in Paragraph VI at the time of signing this Agreement. This election is irrevocable during the Employee's participation in the Plan. 1. Lump sum payment. 2. Installment payments over a period of 60 months to a maximum 2 of 240 months, but should the Employee not live to receive the number of installment payments selected, the balance, if any, to be paid to the Employee's beneficiary. 3. Installment payments of equal or nearly equal monthly amounts for not more than the remaining years of his life expectancy in accordance with standard mortality tables recognized for that purpose by the Director of Finance or his designated representative, in amounts such that the participating Employee's account balance will be liquidated as of the final payment. Should the participating Employee die prior to the exhaustion of his account the balance shall go to his bene- ficiary. VIII. The following distribution is to be made of benefits under this Plan in accordance with the methods of payment as outlined in Paragraph VII: 1. Distribution in the event of normal, early or postponed retirement. The Employee hereby elects Method If Method 2 is elected, installment payments for a period of months. 2. Distribution to the beneficiary in the event of death of the Employee prior to termination of employment. The Employee hereby elects Method If Method 2 is elected, install- ment payments for a period of months. 3. Distribution in the event of termination of Employee's employ- ment with the City. The.Employee hereby elects Method If Method 2 is elected, installment payments for a period of months. IX. For reasons of serious personal financial hardship, beyond the control of the Employee, Employee may apply for withdrawal of benefits from this Plan prior to commencement of payments pursuant to Paragraph VI above. The Advisory Committee in its sole discretion shall determine if the request is to be granted. The Advisory Committee may only grant a request for withdrawal equal to 3 the amount necessary to meet the serious personal financial hardship. This withdrawal may not exceed the amount of accrued benefits. Should Employee be allowed to withdraw all his Account, Employee shall be deemed to have terminated his participation in the Plan. He may again become a participant in the calendar year following his with- drawal by entering into a new Agreement with the City, prior to commencement of said calendar year. X. Solely for the purposes of this Deferred Compensation Agreement, Employee designates as his beneficiary (name), (relationship) if living; otherwise to (relationship). EXECUTED BY THE PARTIES TO THIS AGREEMENT ON , 19 . CITY OF CORPUS CHRISTI By Director of Finance ATTEST: EMPLOYEE City Secretary 4 r THAT THE FOREGOING ORDINANC READ TO ITS SECOND READING ON TH13 THE Y OF FOLLOWING VOTE: JASON LUBY >- BILL TIPTON EDUARDO DE A3E3 RUTH GILL BOB GULLEY GABE LOZANO, SR. EDWARD L. SAMPLE THE FIRST TIME AND PASSED L� 19Z,(g BY THE TWAT THE FOREGOING ORDINANCE WAS RE D FO 7H SECO ID 71ME AN 17 ASS�ED'C�ede TO ITS THIRD READING ON THIS THE �S DAY OF FOLLOWING VOTE: a �97BY THE JASON LUBY DR. BILL TIPTON EDUARDO DE A3ES RUTH GILL BOB GULLEY GABE LOZANO, SR. EDWARD L. SAMPLE THAT THE FOREGOI G ORD FINALLY ON THIS THEDAY JASON LUBY DR. BILL TIPTON EDUARDO DE ASES RUTH GILL BOB GULLEY GABE LOZANO, SR. EDWARD L. SAMPLE PASSED AND APPROVED, TH ATTEST: ,y G ,v CITY SECRETARY APfI_OVED: !!a DAY OF 9 rp. ICIT—YATTIRNEY ID PASSED ,LOWING VOTE: y�4 7�) MAYOR pro: et THE CITY OF CORPUS CHRISTI, TEXAS