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HomeMy WebLinkAbout446_Adopting an Employee Retirement System Defined Contribution PlanBOOK 5442 PAGE 980 92 089392 ORDINANCE NO. 446 CITY OF OWASSO, OKLAHOMA AN ORDINANCE ADOPTING AN EMPLOYEE RETIREMENT SYSiTTEM, c DEFINED CONTRIBUTION PLAN FOR OWASSO, OKLAHOMA; PRO VIDING RETIREMENT BENEFITS FOR ELIGIBLE EMPLOYEES OF THE CITY OF OWASSO, OKLAHOMA; PROVIDING FOR PURPOSE AND ORGANIZATION; PROVIDING FOR DEFINITIONS; PROVIDING FOR ELIGIBILITY AND PARTICIPATION; PROVIDING FOR EMPLOYER AND EMPLOYEE CONTRIBUTIONS; PROVIDING FOR ACCOUNTING, ALLOCATION, AND VALUATION; PROVIDING BENEFITS; PROVIDING FOR REQUIRED NOTICE; PROVIDING FOR AMENDMENTS AND TERMINATION; PROVIDING FOR TRANSFER TO AND FROM OTHER PLANS; CREATING A RETIREMENT COMMITTEE AND PROVIDING FOR POWERS, DUTIES AND RIGHTS OF RETIREMENT COMMITTEE; PROVIDING FOR PAYMENT OF CERTAIN OBLIGATIONS; PROVIDING FOR DURATION AND PAYMENT OF EXPENSES; PROVIDING FOR EFFECTIVE DATE; PROVIDING FOR VESTING SCHEDULES; PROVIDING FOR A FUND TO FINANCE THE SYSTEM TO BE POOLED WITH OTHER INCORPORATED CITIES, TOWNS AND THEIR AGENCIES AND INSTRUMENTALITIES FOR PURPOSES OF ADMINISTRATION, MANAGEMENT AND INVESTMENT AS PART OF THE OKLAHOMA MUNICIPAL RETIREMENT FUND; PROVIDING FOR PAYMENT OF ALL CONTRIBUTIONS UNDER THE SYSTEM TO THE TREASURER OF THE CITY OF OWASSO, OKLAHOMA, AND FOR TRANSFER OF SUCH CONTRIBUTIONS AND FUND ASSETS TO THE OKLAHOMA MUNICIPAL RETIREMENT FUND FOR MANAGEMENT AND INVESTMENT; PROVIDING FOR REPEALER AND SEVERABILITY; AND DECLARING AN EMERGENCY. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA: Section One: That pursuant to the authority conferred by the laws of the State of Oklahoma, and for the purpose of encouraging continuity and meritorious service on the part of City employees and thereby promote public efficiency, there is hereby authorized, created, established, and approved and adopted, effective as of July 1, 1992, the funded Pension Plan designated "Employee Retirement System of Owasso, Oklahoma, Defined Contribution Plan," (hereinafter called System), an executed counterpart of which is marked Exhibit "A" and Exhibit "B" and attached hereto as part hereof. Section Two: ADMINISTRATION. For the purpose of administration of the System there is hereby established a Board of Trustees, which shall be the members of the City Council or the City of Owasso, Oklahoma, as now existing or as from time to time duly elected or appointed and constituted. The powers and duties of the Board of Trustees shall be as set forth in the System instrument attached hereto as Exhibit "A ". Section Three: FUND. A fund is hereby provided for the exclusive use and benefit of the persons entitled to benefits under the System. All contributions to such fund shall be paid over to and received in trust for such purpose by the City Treasurer, who shall be the Treasurer of the System. Such Fund shall be pooled for purposes of . management and investment with similar funds of other incorporated cities, towns and municipal trusts in the state of oklahoma as a part of the Oklahoma Municipal Retirement Fund in accordance with the trust agreement of the Oklahoma Municipal Retirement Fund, a public trust. The City Treasurer shall hold such contributions in the form received, and from time to time pay over and transfer the same to the Oklahoma Municipal Retirement Fund, as duly authorized and directed by the Board of Trustees. The Fund shall be nonfiscal and shall not be considered in computing and lefy when the annual estimate is made to the County Excise Board. BOOK 5442 PAGE 981 Section Four: APPROPRIATIONS. The City of Owasso, Oklahoma is hereby authorized to incur the necessary expenses for the establishment, operation, and administration of the System, and to appropriate and pay the same. In addition, the City of Owasso, Oklahoma, is hereby authorized to appropriate annually such amounts as are required in addition to employee contributions to maintain the System and the Fund in accordance with the provisions of the Defined Contribution Plan. Any appropriation so made to maintain the System and Fund shall be for deferred wages or salaries, and for the payment of necessary expenses of operation and administration to be transferred to the trustees of the Oklahoma Municipal Retirement Fund for such purposes, and shall be paid into the Fund when available, through the City Treasurer, to be by him duly transferred to the Oklahoma Municipal Retirement Fund. Section Five: EXECUTION. The Mayor and City Clerk be and they are each hereby authorized and directed to execute (in counterparts, each of which shall constitute an original) the System instrument, and to do all other acts and things necessary, advisable, and proper to put said System and related trust into full force and effect, and to make such changes therein as may be necessary to qualify the same under Sections 401(a) and 501(a) of the Internal Revenue Code of the United States. The counterpart attached hereto as exhibit "A ", which has been duly executed as aforesaid simultaneously with the passage of this Ordinance and made a part hereof, is hereby ratified and confirmed in all respects. This Owasso City Council is hereby authorized and directed to proceed immediately on behalf of the City of Owasso, Oklahoma, to pool and combine the Fund into the Oklahoma Municipal Retirement Fund as a part thereof, with similar funds of such other cities and towns, for purposes of pooled management and investment. Section Six: REPEALER. Any Ordinance inconsistent with the terms and provisions of this Ordinance is hereby repealed, provided however, that such repeal shall be only to the extent of such inconsistency and in all other respects this Ordinance shall be cumulative of other ordinances regulating and governing the subject matter covered by this Ordinance. Section Seven: SEVERABILITY. If regardless of cause, any section, subsection, paragraph, sentence or clause of this Ordinance, including the System as set forth in Exhibit "A" is held invalid or to be unconstitutional, the remaining sections, subsections, paragraphs, sentences, or clauses shall continue in full force and effect and shall be construed thereafter as being the entire provisions of this Ordinance. Section Eieht: EMERGENCY. Whereas, in the judgment of the City Council of the City of Owasso, Oklahoma, the public peace, health, safety and welfare of the City of Owasso, Oklahoma, and the inhabitants thereof demand the immediate passage of this Ordinance, an emergency is hereby declared, and this Ordinance shall be in full force and effective upon the passage of this emergency clause separately. Dated this 16th day of June, 1992. CITY OF OWASSO, OKLAHOMA By Patricia K. Marlar, Mayor ATTEST: Jane Buchanan, City Clerk APPROVED AS TO FROM: Ronald D. Cates, City Attorney Attachment "A" OKLAHOMA MUNICIPAL RETIREMENT SYSTEM MASTER DEFINED CONTRIBUTION PLAN AND TRUST MONEY PURCHASE PENSION AND TARGET BENEFIT JOINDER AGREEMENT FOR THE CITY OF OWASSO AS OF JULY 1, 1992 TABLE OF CONTENTS Page 1. Effective Date 1 2. Employee 1 3. Eligibility 1 4. Plan Design 2 5. Other Participant Contribution Options 3 6. Allocation of ; ontributions 3 7. Vesting 3 8. Committee 5 9. Employer Signature 7 10. Oklahoma Municipal Retirement SystemSignature 7 RF30085 -ii- City of Owasso a city, town, agency, instrumentality, or public trust located in the State of Oklahoma, with its principal office at Owasso , hereby establishes a Defined Contribution Plan and Trust to be known as City of Owasso Plan and Trust (the "Plan ") in the form of The Oklahoma Municipal Retirement System Master Defined Contribution Plan and Trust. Except as otherwise provided herein, the defini- tions in Article II of the Plan apply. 1. The Effective Date of the Plan shall be the first day of July 1 1992. 2. Employee. Employee shall mean: Any person who, on or after the Effective Date, is receiving remuneration for personal services retidered to the Employer (including any elected official and any appointed officer or employee of any department of the Employer, whether governmental or proprietary in na- ture), including persons on Authorized Leave of Absence. Employees shall not include independent contractors. Elected members of the City Council shall not be consid- ered to be Employees solely by reason of their holding such office. Lg/ The term Employee shall not include any individual who is employed on a temporary or part -time basis. U The term Employee individual who is covered by any retirement system unless, with state or local retirement system, pay status currently receiving active participant. 3. Eligibility. shall not include any other state or local respect to the other the individual is in benefits and not an Employees shall be eligible to participate in the Plan: (Select only one) Z months (any number of months up to twelve) after the Employee's Employment Commencement Date. V On the first day the Employee's service for the Employer is no longer temporary, probationary, or provisional. U On the Employee's Employment Commencement Date. 4. The Employer hereby elects the following Plan design: Pick -up Option. The Employer hereby elects to have the provisions of Section 4.9 of the Plan apply. The Employer shall pick -up and pay % of each Partici- pant's Compensation. Thrift Plan Option. Lyl The Employer shall contribute to the Fund an amount equal to 50 % of the total Mandatory Contributions contributed by Participants. The Employer shall not contribute to the Fund. An Employee shall be required to contribute to the Plan for each Plan Year 0 to 2.0 of his Compensation ( "Mandatory Contribu- tions"). Mandatory Contributions shall be made by payroll deductions. An Employee shall authorize such deductions in writing on forms approved by, and filed with the Committee. Money Purchase Pension Option. The Employer shall contribute to the Fund an amount which when added to Amounts Forfeited for the Plan Year shall equal _% of the total covered Compensation of all Participants for the Plan Year. Target Benefit Option. The Employer shall contribute to the Plan on behalf of each Participant an amount which when added to the Amounts Forfeited for the Plan Year shall equal the amount calculated under Section 4.8 of the Plan to provide an assumed annual retirement benefit equal to percent (_ %) of that Participant's total Compensation for all Plan Years at his Normal Retirement Date. -2- No Employer Contribution Option. 5. Other Participant Contribution Options. Voluntary Deductible Contributions by Participants shall be allowed under the provisions of Section 4.4 of the Plan. A Participant may withdraw Voluntary Deduc- tible Contributions as set forth in Section 6.9(a) of the Plan. A Participant may not withdraw 'Voluntary Deductible Contributions. Voluntary Nondeductible Contributions by Participants shall be allowCd under the provisions of Section 4.5 of the Plan. Participants shall not contribute to the Plan. 6. Allocation of Contributions. For purposes of the allocation of contributions pursuant to Article V of 'the Plan, the Employer's contribution for each Plan Year, togeth- er with Amounts Forfeited as of the end of each Plan Year allocable under Section 5.3 of the Plan, shall be allocated as of the last day of such Plan Year, to the Municipality Contribution Accounts of Participants, in the proportion which the Compensation of each such Participant for such Plan Year bears to the Compensation paid to all such Participants for such Plan Year.' (This option should be elected if neither the Thrift Plan Option nor the Target Benefit Option is selected.) in the proportion which the Mandatory Contributions of each such Participant for such Plan Year bear to the total Mandatory Contributions contributed by all such Participants for such Plan Year. (This option should be elected if the Thrift Plan Option is chosen.) in the amount calculated for each Partic- ipant under Section 4.8 of the Plan. (This option should be elected if the Target Benefit Option is elected). 7. For purposes of vesting under Section 6.4 of the Plan, the Employer hereby elects the following Option: (Select one) -3- Years of Vested Forfeited Service Percentage Percentage (a) L/ Option A less than 1 0% 100% 1 but less than 2 10% 90% 2 but less than 3 20% 80% 3 but less than 4 30% 70% 4 but less than 5 40% 60% 5 but less than 6 50% 50% 6 but less than 7 60% 40% 7 but less than 8 70% 30% 8 but less than 9 80% 20% 9 but less than 10 90% 10% 10 or more less than 100% 0% 15 or more 100% (b) Option B less than 5 0% 5 but less than 25% 6 but less than 730% 7 but less than 8 35% 8 but less than 9 40% 9 but less than 10 45% 10 but less than 11 50% 11 but less than 12 60% 12 but less than 13 70% 13 but less than 14 80% 14 but less than 15 90% 15 or more 100% (c) U Option C less than 3 .. 0% 3 but less than 4 30% 4 but less than 5 40% 5 but less than 6 50% 6 but less than 7 60% 7 but less than 8 70% 8 but less than 9 80% 9 but less than 10 90% 10 or more . 100% (d) ZT Option D: The schedule indicated below: -4- 100% 75% 70% 65% 60% 55% 50% 40% 30% 20% 10% 0% 0 100% 70% 60% 50% 40% 30% 20% 10% 0% Years of Service Less than 2 2 but less than 3 3 but less than 4 4 but less than.5 5 or more Vested Percentage 0% 40% 60% 80% 100% Forfeited Percentage 100% 60% 40% 20% 0% 8. The .Committee, consisting of the following members, agrees to administer the Plan and Trust pursuant to the provisions thereof. Name Signature Name gnature Name Signature Name Signature Name Signature Name Signature -5- -6- Name Signature Name Signature 9. The Employer has consulted with and been advised by its attorney concerning the meaning of the provi -..- sions of the Plan and Trust Agreement and the effect.of entry " into the Plan and Trust. The Employer acknowledges that if it adopts any employee retirement benefit plan in addition to this Plan, it must obtain another determination letter from the Internal Revenue Service in addition to the determination letter obtained for this Plan. IN WITNESS WHEREOF the City of Owasso has caused its corporate seal to be affixed hereto and this instrument to be duly executed in its name and behalf by its duly authorized officers this 16 day of June 1992. City of nw (Name of Em p oyer) By Attest: Title:patricia K Marlar -Mayor (SEAL) 10. The foregoing Joinder Agreement is hereby approved by The Oklahoma Municipal Retirement System this day of , 19_ Attest: sistant Secretary (SEAL) RF29985 THE OKLAHOMA MUNICIPAL RETIREMENT SYSTEM By: Title: -7- Published In the Owasso Reponer Owasso, Tulsa County, Okla homa. June 25, 1992. Affidavit Of Pubficatioll ORDINANCE NO. 446 CITY OF OWAsso, OKLAHOMA STATE OF OKLAHOMA, TULSA COUNTY, ss: AN ORDINANCE ADOPTING AN EMPLOYEE RETIREMENT SYSTEM, DEFINED CONTRISU- Bill R. Retherford , of lawful age, being duly sworn TION PLAN FOR OWASSO, OKLAHOMA; PROVIDING RETIREMENT BENEFITS FOR and authorized, says that he is the publisher of the ELIGIBLE EMPLOYEES OF THE CITY OF OWASSO, OKLAHOMA; PROVIDING FOR PURPOSE AND OWASSO REPORTER a weekly ORGANIZATION; PROVIDING FOR DEFINITIONS; PROVIDING FOR ELIGIBILITY AND PARTICI. newspaper printed in the city of OWASSO PATION; PROVIDING FOR EMPLOYER AND EMPLOYEE Tulsa County, Oklahoma, a newspaper qualified to CONTRIBUTIONS; PROVIDING FOR ACCOUNTING, ALLOCA. TION, AND VALUATION; PROVID. ING BENEFITS; PROVIDING FOR publish legal notices, advertisements and publications REQUIRED NOTICE; PROVIDING FOR AMENDMENTS AND TERM I. as provided in Section 106 of Title 25, Oklahoma NATION: PROVIDING FOR TRANSFER TO AND FROM OTH. ER PLANS; CRATING A RETIRE. Statutes 1971 and 1983 as amended, and thereafter, MENT COMMITTEE AND PRO. VIDING FOR POWERS, DUTIES AND RIGHTS OF RETIREMENT and complies with all other requirements of the laws COMMITTEE; PROVIDING FOR PAYMENT OF CERTAIN OBLIGA- TIONS; PROVIDING FOR DURA� of Oklahoma with reference to legal publications. TION AND PAYMENT OF EXPENSES; PROVIDING FOR EFFECTIVE DATE; PROVIDING That said notice, a true copy of which is attached FOR VESTING SCHEDULES; PROVIDING FOR A FUND TO FINANCE THE SYSTEM TO BE hereto, was published in the regular edition of said POOLED WITH OTHER INCOR. PORATED CITIES, TOWNS AND THEIR AGENCIES AND INSTRU. newspaper during the period and time of publication MENTALITIES FOR PURPOSES OF ADMINISTRATION, MANAGE. MENT AND INVESTMENT AS and not in a supplement, on the following dates: PART OF THE OKLAHOMA JUNE 25 2 MUNICIPAL RETIREMENT FUND; PROVIDING FOR PAYMENT OF ALL CONTRIBUTIONS 199 - UNDER THE SYSTEM TO THE TREASUR- ER OF THE CITY OF OWASSO, OKLAHOMA, AND FOR TRANS- FER OF SUCH CONTRIBUTIONS AND FUND ASSETS TO THE OKLAHOMA MUNICIPAL RETIRE. Subscribed and sworn to before me this 26th MENT FUND FOR MANAGEMENT AND INVESTMENT, PROVIDING FOR REPEALER AND SEVER. day of Tun p- _?199 2 ABILITY; AND DECLARING AN EMERGENCY. Section Eight: EMERGENCY. Whereas, In the judgment of the City Council of the City of Owasso, Notary Public Oklahoma, the public peace health, safety and welfare of the My Commission expires: p jE CRY for Owasso, Oklahoma, and the inhabitants thereof demand the Immediate Passage of this Ordi. PUBLISHERS FEE $ 3 2. 8 5 nance, an emergency Is hereby declared, and this Ordinance shall be in full force and effective upon the Passage of this emergency clause separately. Dated this 16th day of June, 1992.