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HomeMy WebLinkAbout16839 ORD - 01/27/1982AN ORDINANCE AMENDING THE DEFERRED COMPENSATION PLAN FOR CITY EMPLOYEES, ORDINANCE13405,BY SPECIFYING THE MAXIMUM AMOUNTS WHICH MAY BE DEFERRED UNDER THE PLAN; CHANGING THE TIMES AT WHICH EMPLOYEES MAY JOIN THE PLAN; ALLOWING EMPLOYEES TO CHANGE THE METHOD OF DISTRIBUTION; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the Deferred Compensation Plan for City Employees, Ordinance 13405, be amended by adding to Section 1 the following: A. The maximum amount that may be deferred under the Plan annually (except as provided in paragraph B below)shall not exceed the lesser of: (1) $7,500 or (2) 33 1/3 percent of the employees includible compensation. B. During one or more of the employee's last three taxable years prior to normal retirement age under the Plan, the employee may exer- cise an additional "catchup" exclusion if in previous years the full amount allowed under paragraph A above has not been utilized. The maximum amount that can be deferred for any taxable year under the normal rule in paragraph A above and the "catchup" rule herein cannot exceed $15,000. SECTION 2. That the Deferred Compensation Plan for City Employees, Ordinance 13405, be amended by deleting from Section 2 paragraphs B and C in their entirety and substituting the following: B. During subsequent years of the Deferred Compensation Plan, employees must join the Plan prior to the beginning of the calendar month 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 beginning of the calendar month in which it is to become effective. SECTION 3. That the Deferred Compensation Plan for City Employees, Ordinance 13405, beamendedby deleting from Section 2, paragraph J, the state- ment "Such an election is irrevocable during the employee's participation in the Plan" and substituting the following: Such election may be changed by 16839 SEP 2 8 1984 MICROFILMED the employee by giving written notice to the City at anytime prior to the earliest distribution date as set forth in paragraph I above." SECTION 4. The form of the "Deferred Compensation Agreement" incorporating the amendments to the Plan made by virtue of this Ordinance is attached as "Exhibit A" hereto. SECTION 5. That upon written request of the Mayor or five Council members, copy attached, to find and declare an emergency due to the need for efficient administration of City affairs, such finding of an emergency is made and declared requiring suspension of the Charter rule as to consideration and voting upon ordinances or resolutions at three regular meetings so that this ordinance is passed and shall take t upon first reading as an emergency measure this the Ai day of ATTEST: y Secretary APPROVED: 614, -DAY OF ..k.k.t4tA4e , 1982: J. BRUCE AYCOCK, CITY ATTORNEY BY stant City Attorney MAYOR THE CI OF CORPUS CHRISTI, TEXAS r- STATE OF TEXAS COUNTY OF NIECES DEFERRED COMPENSATION AGREEMENT 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"), WITNESSETH: WHEREAS, Article 6252-3B, V.T.C.S., enacted by the 63rd Texas Legis- lature, authorizes cities or towns in Texas toestablish 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: . T. 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 fr-lin which it is to become effective, and shall become effective on the first day of such calendar<month.; 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 :EA%\);) " 11 r .• 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 Lmay_be_changed_by_giving written notice to the City lat any ti a prior to the earliest distribution date set forth in paragraph VI above. 1. Lump sum payment. 2. Installment payments over a period of 60 months to a maximum 2 r • 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 (name) (relationship; EXECUTED BY THE PARTIES TO THIS AGREEMENT ON 19_. CITY OF CORPUS CHRISTI By Director of Finance ATTEST: EMPLOYEE City Secretary 4 •• Corpus Christi gfxas day of TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance or resolution, an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances or resolutions at three regular meetings; 1/we, therefore, request that you suspend said Charter rule and pass this ordinance or resolution finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, Council Members MAY' ige TH: ITY OF CORPUS CHRISTI, TEXAS The above ordinance was passed by the foll Luther Jones Betty N. Turner Jack K. Dumphy Bob Gulley Herbert L. Hawkins, Jr. Dr. Charles W. Kennedy Cliff Zarsky ing vote: 16839 -