HomeMy WebLinkAboutRESOLUTION - 36-97 - 8/12/1997 - MONEY PURCHASE PLAN, UTILIZATION OFRESOLUTION NO. 36-97
A RESOLUTION AUTHORIZING THE UTILIZATION OF A MONEY
PURCHASE PLAN (ICMA RETIREMENT TRUST 401(a) PLAN)
WHEREAS, the Village of Elk Grove Village has employees rendering
valuable services; and
WHEREAS, the establishment of a money purchase retirement plan benefits
employees by providing funds for retirement and funds for beneficiaries in
the event of death; and
WHEREAS, the Village of Elk Grove Village desires that its money
purchase retirement plan be administered by the ICMA Retirement
Corporation and that the funds held under such plan be invested in the
ICMA Retirement Trust, a trust established by public employers for the
collective investment of funds held under their retirement and deferred
compensation plans.
NOW, THEREFORE, BE IT RESOLVED by the President and Board of Trustees
of the Village of Elk Grove Village, Counties of Cook and DuPage, Illinois:
Section 1. That the Village of Elk Grove Village hereby establishes
a money purchase retirement plan (the "Plan") in the form of the ICMA
Retirement Corporation Prototype Money Purchase Plan and Trust, pursuant to
the specific provisions of the Adoption Agreement (executed copy attached
hereto).
Section 2. That the Plan shall be maintained for the exclusive
benefit of eligible employees and their beneficiaries.
Section 3. That the Village of Elk Grove Village has executed the
Declaration of Trust of the ICMA Retirement Trust, with the intention that
this execution be operative with respect to any retirement or deferred
compensation plan subsequently established by the Village of Elk Grove
Village, if the assets of the plan are to be invested in the ICMA
Retirement Trust.
Section 4. That the Village of Elk Grove Village hereby agrees to
serve as Trustee under the Plan and to invest funds held under the Plan in
the ICMA Retirement Trust.
Section 5. That the Director of Finance shall be the coordinator for
the Plan; shall receive necessary reports, notices, etc., from the ICMA
Retirement Corporation or the ICMA Retirement Trust; shall cast, on behalf
of the Village of Elk Grove Village, any required votes under the ICMA
Retirement Trust; may delegate any administrative duties relating to the
Plan to appropriate departments.
Section 6. That the Village President and Village Clerk are hereby
authorized to sign any necessary documents to implement this resolution.
Section 7. That this Resolution shall be in full force and effect
from and after its passage and approval according to law.
VOTE: AYES: 5 NAYS: 0 ABSENT: 1
PASSED this 12th day of August , 1997.
APPROVED this 12th day of August , 1997.
ATTEST:
Patricia S. Smith
Village Clerk
Craig B. Johnson
Village President
- 2 -
ICMA RETIREMENT CORPORATION
PROTOTYPE MONEY PURCHASE PLAN & TRUST
ADOPTION AGREEMENT
«001
Account Number gspq
The Employer hereby establishes a Money Purchase Plan and Trust to be known as
(the "Plan") in the form of the ICIvIA Retirement
Corporation Prototype Money Purchase Plan and Trust.
This Plan is an amendment and restatement of an existing defined contribution money purchase plan.
❑ Yes No
If yes, please specify the name of the defined contribution money purchase plan which this Plan
hereby amends and restates:
Employer: Village
II. Prototype Sponsor:
Name: ICMA Retirement Corporacion
Address: 777 N. Capitol Street, N.E.
Washington, D.C. 20002.4240
Telephone Number: (202) 962-4600
III. The Effective Date of the Plan shall be the first day of the Plan Year during which the
Employer adopts the Plan, unless an alternate Effective Date is hereby specified:
Qla*il'21. 1097
IV Plan Year will mean:
The twelve (12) consecutive month period which coincides with the limita-
tion Year. (See Section 6.05(i) of the Plan.)
$1 The twelve (12) consecutive month period commencing ono// t� and
each anniversary thereof.
MPP Adoption Agreement 12/23/94
001-94
V. Normal Retirement Age shall be age .S4; (not to exceed age 65).
VI. ELIGIBILITY REQUIREMENTS:
The following group or groups of Employees are eligible to participate in the Plan:
All Employees
All Full -Time Employees
Salaried Employees
Non-union Employees
Management Employees
Public Safety Employees
General Employees
X Other (specify below)
Village Afnnnger
The group specified must correspond to a group of the same designation that is defined
in the statutes, ordinances, rules, regulations, personal manuals or other material in
effect in the state or locality of the Employer.
The Employer hereby waives or reduces the requirement of a twelve (12) month
Period of Service for participation. The required Period of Service shall be N/A
(write N/A if an Employee is eligible to participate upon employment).
If this waiver or reduction is elected, it shall apply to all Employees within the
Covered Employment Classification.
A minimum age requirement is hereby specified for eligibility to participate. The
minimum age requirement is 21 (not to exceed age 21. Write N/A if no
minimum age is declared.)
VII. CONTRIBUTION PROVISIONS
The Employer shall contribute as follows (choose one, if applicable):
Fixed Employer Contributions With Or Without Mandatory Participant
Contributions.
The Employer shall contribute on behalf of each Participant % of
Earnings or $9.00tfor the Plan Year (subject to the limitations of Article VI
of the Plan). Each Participant is required to contribute % of Earnings
or $4.,000for the Plan Year as a condition of participation in the Plan. (Write
"0" if no contribution is required.) If Participant Contributions are required
under this option, a Participant shall nor have the right to discontinue or
vary the rate of such contributions after becoming a Plan Participant.
MPP Adoption Agreement 12/23/94
001-94
The Employer hereby elects to "pick up" the Mandatory/Required Participant
Contribution.
Yes ❑ No
[Note to Employer: Neither an opinion letter issued by the Internal
Revenue Service with respect to the Prototype Plan, nor a determination
letter issued to an adopting Employer is a ruling by the Internal Revenue
Service that Participant contributions that are picked up by the Employer are
not incluJable in the Participant's ;rocs income for federal income tax pur-
poses. The Employer may seek such a ruling.
Picked up contributions are excludable from the Participant's gross
income under section 414(h)(2) of the Internal Revenue Code of 1986 only
if they meet the requirements of Rev. Rul. 81-35, 1981-1 C.B. 255. Those
requirements are (1) that the Employer must specify that the contributions,
although designated as employee contributions, are being paid by the Em-
ployer in lieu of contributions by the employee; and (2) the employee must
not have the option of receiving the contributed amounts directly instead of
having them paid by the Employer to the plan.]
D Fixed Employer Match of Participant Contributions.
The Employer shall contribute on behalf of each Participant _% of Earn-
ings for the Plan Year (subject to the limitations of Articles V and VI of the
Plan) for each Plan Year that such Participant has contributed _% of
Earnings or $_. Under this option, there is a single, fixed rate of Em-
ployer contributions, but a Participant may decline to make the required
Participant contributions in any Plan Year, in which case no Employer contri-
burion will be made on the Participant's behalf in that Plan Year.
CJ Variable Employer Match Of Participant Contributions.
The Employer shall contribute on behalf of each Participant an amount de-
termined as follows (subject to the limitations of Articles V and VI of the Plan):
"b of the Participant contributions made by the Participant for
the Plan Year (not including Participant contributions exceeding _0' of
Earnin,s or );
PLC.'S °; of the contributions made by the Participant for the
Plan Year in excess of those uuluJed in the above para,raph (but not includ-
ing Participant contributions excecdmg in the ag,regate _°h of Earnings
or ).
Employer Contributions on behalf of a Participant for a Plan Year
shrill not exceed j or _% of Earnings, whi,hever is ,1 more or
fess.
MPP Adoption Agreement 12/23/94
001-94
Each Participant may make voluntary (unmatched), after-tax contribution, subject to
the limitations of Section 4.05 and Articles V and VI of the Plan.
Uf Yes ❑ No
3. Employer contributions and Participant contributions shall be contributed to the
Trust in accordance with the following payment schedule:
Semi -Annual A1ay]st S4 000 NovPmb r Is $4 000
VIII. EARNINGS
Earnings, as defined under Section 2.09 of the Plan, shall include:
(a) Overtime
(b) Bonuses
❑ Yes ❑ No
❑ Yes U No
IX. LIMITATION ON ALLOCATIONS
If the Employer (i) maintains or ever maintained another qualified plan in which any Par-
ticipant in this Plan is (or was) a participant or could possibly become a participant, and/or
(ii) maintains a welfare benefit fund (as defined in section 419(e) of the Code) or an indi-
vidual medical account (as defined in section 415(1)(2) of the Code, under which amounts
are treated as Annual Additions with respect to any Participant in this Plan) the Employer
hereby agrees to limit contributions to all such plans as provided herein, if necessary in order
to avoid excess contributions (as described in Sections 6.03 and 6.04 of the Plan).
If the Participant is covered under another qualified defined contribution plan
maintained by the Employer, other than a Regional Prototype Plan, the provisions
of Section 6,02(a) through (f) of the Plan will apply as if the other plan were a
Master Prototype Plan, unless another method has been indicated below.
❑ Other Method. (Provide the method under which the plans will limit
total Annual .Additions to the Maximum Permissible Amount, and will
properly reduce any excess amounts, in a manner that precludes Employer
discretion.)
MPP Adoption Agreement 12/23/94
001-94
2. If the Participant is or has ever been a participant in a defined benefit plan maul.
rained by the Employer, and if the limitation in Section 6.04 of the Plan would he
exceeded, then the Participant's Projected Annual Benefit under the defined benc(it
plan shall be reduced in accordance with the terms thereof to the extent necessary to
satisfy, such limitation. If such plan does not provide for such reduction, or if the
limitation is still exceeded after the reduction, annual additions shall he reduced n.,
the extent necessary in the manner described in Sections 6.01 through 6.03. The
methods of avoiding, the limitation described in this paragraph will not apply if the
Employer indicates another method below.
❑ Other Method. (Note to Employer: Protide below language which will satisfy
the 1.0 limitation of section 415(e) of the Code. Such language must
preclude Employer discretion. See section 1.415-1 of the Regulations for
guidance.)
3. The limitation year is the following 12 -consecutive month period:
X. VESTING PROVISIONS
The Employer hereby specifies the following vestm,, schedule, subject to ( L) the minimum
vesting requirements as noted and (2) the concurrence of the Plan Administrator.
Years of
Specified
Minimum
Service
Percent
Vesting
Completed
Vesrim,
Reouirements**
Zero
100 °0
No minimum
One
%
No minimum
Two
06
No minimum
Three
4U
Not less than 2040
Four
9(,
Not less than 4040
Five
%
Not less than 60%
Six
%
Not less than 8090
Seven, or more
100 %
Must equal 100%
(**These minimum vesting requirements conform to the Code's three to seven vear vesting
schedule. If the employee becomes 10096 vested by the completion of five gems of service,
there is no minimum for years three and four.)
XI. Loans are permitted under the Plan, as provided in Article XIV:
❑ Yes J No
MPP Adoption Agreement 12/23/94
001-94 MIT
XII. The Employer hereby attests that it is. a unit of state or local government or an agency or
instrumentality of one or more units of state or local government.
XIII. The Prototype Sponsor hereby agrees to inform the Employer of any amendments to the
Plan made pursuant to Section 15.05 of the Plan or of the discontinuance or abandonment
of the Plan.
XIV. The Employer hereby appoints the Prototype Sponsor as the Plan Administrator pursuant to
the terms and conditions of the ICIMA RETIREMENT CORPORATION PROTOTYPE
MONEY PURCHASE PLAN & TRUST.
The Employer hereby agrees to the provisions of the Plan and Trust.
XV The Employer hereby acknowledges it understands that failure to properly fill out this
Adoption Agreement may result in disqualification of the Plan.
XVI. An adopting Employer may not rely on a notification letter issued by the National or
District Office of the Internal Revenue Service as evidence that the Plan is qualified
under section 401 of the Internal Revenue Code. In order to obtain reliance with
respect to plan qualification, the Employer must apply to the appropriate key district
office for a determination letter.
This Adoption Agreement may be used only in conjunction with basic Plan document
number 001.
In Witness Whereof, the Employer hereby causes this Agreement to be executed on
this 2'Z ^�7_ day of 41'. lz , 1997.
EMPLOYER
',7
Title: l%2,�rIGE '7 9 i
Attest:
1034
Accepted: ICMA RETIREMENT CORPORATION
Title: Corporate Secretary
Attest:
MPP Adoption Agreement 12/23/94
001-94
Villaee of Elk Grove Villaee
Monev Purchase
Pricing, Offer and Acceptance
The ICMA Retirement Corporation proposes the followin fees and terms
Fees
April 7, [997
ICMA Retirement Corporation
• Plan Administration Fee:
Investment returns are reported net of the annual plan administration fee of 0.75% of
assets under management.
• Mutual Fund Services Fee:
Investment returns of the iNlutual Fund Series are reported net of the annual mutual fund
services fee of 0.25% of assets under management.
• Model Portfolio Fund Fee:
Investment returns of Model Portfolio Funds are reported net of the annual model
portfolio fund fee of 0.10% of assets under management.
• Participant Fee:
The annual account maintenance fee has been waived.
Investment management fee and fund expenses are detailed in the enclosed disclosure documents.
".11ak+ng Sound Investment Decisions:
d Retirement Investment Guide" and ':9 Retirement Ieresmeni Guide for the ,ifutual Fund Serres".
Terms
• Expiration: This offer of pricin.- expires July 6, 1997.
By siening this page. 1 affirm that I understand. and am authorized to accept on behalf of the above employer, the ICMA Retirement
Corporation's offer. I understand that the IC,NIA Retirement Corporation will issue an Administrative Services Agreement iASA)
which will describe their duties and those of the emplover. The terms of this offer will be effective once the ASA has been sunned.
e of p)rrson _Hing on behalf of employer
Dennis J. Gallitano
Printed name of person signing on behalf of employer
Villooe President
Title of person signing on behalf of employer
Village of Elk Grove Villaee
901 Wellington Avenue
Elk Grove Village, IL 60007
(337)439-3900
April 11, 1997
Date
31611 Return to A.E. Dunston. Plan Intake Dept. in the enclosed
envelope or fax to(202) 962-4601. Thankyou,
401 QUA FIED PLAN EMPLOYER Dti,A FORM
• Imirocnunv to Emptor,,: Prun,le necessary intbnnarnon to establish runr plan properly. Please contact Client
Sun Ices at l -800-32v-727' it you hove ane 9uesmms.
RC Use Only
1. Employer Number
General 2. Employer's Full Name (City of, County of, etc.) Village of Elk Grove
Plan
Iniormation 3. Employer's Mailing Address 901 Wellington Avenue
4 City Elk Grove Village 5. State 1L 6. Zip Code 60007
7. Employer's Federal Tax Identification Number 36-6009201
8. Number of Employees 330
9. Number of Employees Eligible for Plan 1
10. Last Month of Plan Year (write in month 01-12) April
AO ., St
Y
II:.MA
RUM MENT
CORI'011\'i loN
i
Contact 11. Title (not name) of Plan's Primary Contact Person Director of Finance
Information Primary Contact Person will automatically receive all RC correspondence, reports, and bulletins
I
Telephone ( 847 ) 357-4051
12. Title (not name) of Contact Person for Benefit Payments Director of Finance
Telephone ( 847 ) 357-4051
Sit Check here if Contact Person for Benefit Payments should receive RC correspondence,
reports and bulletins
13. Title (not name) of Contact Person for Contributions Director of Finance
Telephone ( 847 ) 357-4051
Check here if Contact Person for Contributions should receive RC correspondence, reports,
and bulletins
i Note If norther of the boxes to 12 or 13 is ehcckcd, def.mlt eorresnondent sail be Pla Coordinator named In the re>okaion.
i
Implementation' 14. Contribution Frequency (check one): J (\V) Weekly J (vi) Monthly X1 Other isneciiv)
of Plan J (13) Biweeklv J (S) Semi-monthly Semi -Annual
15. Contribution Data Format (check one): ❑ (T) Tape J (QD) QUICK DISK J (E; EDT
37 (C) Contribution Statement ❑ (D) Diskette
16. First pay date following plan implementation Afav 1, 1997
I
17. Are employees covered by the plan also covered by another qualified plan?# Yes J No
457
................................................................
(CMA Retirement Corporation • P.O. Box 96220 • Washington, DC 20090-6220 • 1-800-326-7272
401 QUAI `IED PLAN EMPLOYEE CES US FORM
• Instrucnons to Employer. List all employees initially eligible to partiapacc in your Qualified Plan.
Photocopies of this form may be used if needed. If you prefer not to use this form, provide a separate list
that includes the some information. This form docs not enroll participants in your plan. Please include an K AIA ,-
Employee Enrollment Form for each eligible participant, including terminated employees. RETIRESIENT
COftPOW1TION
nofP 4-28-97
Page �_ of 1__
Employer Name Village of Elk Grove Employer State Illinois
Employee Name
Social Security
Number
Date of
Employment
Date of
Termination*
Annual
Salary
Birthdate
Gary E. Parrin
391-48-9050
Oct. 1974
--
$101,000
5-25-51
If applicable
................................................... I . . . . . . . . . . . . . .
ICMA Retirement Corporation • P.O. Box 96220 • Washington, DC 20090-6220 • 1-800-326-7272