HomeMy WebLinkAbout027756 RES - 07/15/2008RESOLUTION
AUTHORIZING AND ESTABLISHING A FICA ALTERNATIVE
PLAN UNDER IRC § 457(B) FOR TEMPORARY EMPLOYEES AND
PART-TIME EMPLOYEES WHO WORK LESS THAN 20 HOURS
PER WEEK.
WHEREAS, the City desires to establish a FICA Alternative Plan under IRC
Section 457(b) for city employees who hold positions classified as either
temporary or as part-time (the latter meaning employees who hold a position
assigned base hours of less than 20); and
WHEREAS, temporary and part-time employees, as classified, are not eligible to
participate in the Texas Municipal Retirement System (TMRS); and
WHEREAS, as a governmental employer, the City may offer temporary and part-
time employees an alternate retirement plan in lieu of the Social Security
Program; and
WHEREAS, all existing employees enrolled in Social Security and who are
eligible will be transferred into the FICA Alternative Plan upon commencement of
the Plan; and
WHEREAS, all new part-time and temporary employees will be enrolled in the
FICA Alternative Plan upon employment; and
WHEREAS, the City intends that participant contributions be invested in an
account that provides a reasonable guarantee for the safety of principal and a
competitive rate of return, an insured general account and stable value products;
and
WHEREAS, the City may also consider other investment options that meet this
investment objective; and
WHEREAS, participating employees will be expected to contribute a certain
percentage of their pre-tax earnings each pay period, the percentage to be set by
the City, and
WHEREAS, the City will not contribute to the Plan.
027756
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NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS:
1. SECTION 1. The City Council adopts the Nationwide Retirement
Solutions and its attendant investment options, and establishes the City of
Corpus Christi FICA Alternative Plan for the mandatory participation of all
eligible employees.
2. SECTION 2. The City Manager and designee have authority to execute
individual participation agreements for each participating employee, and to
act as "Administrator" of the Plan, representing the City, and to execute all
related agreements and contracts necessary to implement the collecting
and disbursing of participating employee deferrals, and other related
documents.
3. SECTION 3. There will be no cost or contribution by the City to the FICA
Alternative Plan.
ATTEST: CITY OF CORPUS CHRISTI
anerar
Armando Chapa
City Secretary
APPROVED AS TO FORM: 07 -Jul -08
4oirt )�
Veronica Ocanas
Assistant City Attorney
for City Attorney
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lay of
2008.
The above resolution was passed by the following vote:
Henry Garrett
Melody Cooper
Larry Elizondo, Sr.
Mike Hummell
Bill Kelly
Priscilla G. Leal
John E. Marez
Nelda Martinez
Michael McCutchon
4
aro
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027756