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HomeMy WebLinkAbout724_Amending OMRF_Thrift Plan_Define Base WagesTulsa County Clerk - EARLENE WILSON Doc# 02165626 Receipt # 627614 12/30/02 Fee 15.00 AN ORDINANCE OF THE CITY OF OWASSO, OKLAHOMA ORDINANCE NO. 724 AN ORDINANCE AMENDING THE EMPLOYEE RETIREMENT SYSTEM, DEFINED CONTRIBUTION PLAN FOR CITY OF OWASSO, OKALHOMA, PROVIDING RETIREMENTBENEFITS FOR ELIGIBLE EMPLOYEES OF CITY OF OWASSO, OKLAHOMA; PROVIDING FOR PURPOSE AND ORGANIZATION; PROVIDING FOR DEFINITIONS; PROVIDING FOR ELIGIBILITY AND PARTICIPATION; PROVIDING FOR NON-ALIENATION OF BENEFITS; LOSS OF BENEFITS FOR CAUSE AND LIMITATIONS OF BENEFITS; PROVIDING FOR REQUIRED NOTICE; PROVIDING FOR AMENDMENTS AND TERMINATION; PROVIDING FOR TRANSFER TO AND FROM TOHER PLANS; CREATING A COMMITTEE AND PROVIDING FOR PAOWERS, DUTIES, AND RGITHS OF RETIREMENT COMMITTEE; PROVIDING FOR PAYMENT OF CERTAIN OBLIGATIONS; PROVIDING FOR DURATION AND PAYMENT OF EXPENSES; PROVIDING FOR EFFETIVE DATE; PROVIDING FOR VESTING SCHEDULES; PROVIDNG 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 INVESTMENTS PART OF THE OKLAHOMA MUNICIPAL RETIREMENT FUND; PROVIDING FOR PAYMENT OF ALL CONTRIBUTIONS UNDER THE SYSTEM TOTHE TREASURER OF 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. Section 1. The Employee Retirement System, Defined Contribution Plan, of the City of Owasso, Oklahoma, is hereby amended as reflected on the attached Exhibit "A", which is incorporated herein and adopted by reference. These amendments shall become effective on July 1, 2002. Section 2. The City Clerk and Mayor be and they are hereby authorized and directed to execute the amended Retirement System Plan documents and to do all the other acts necessary to put said amendment into effect and to maintain IRS qualification of the Plan. The executed amended document attached hereto as Exhibit "A" is hereby ratified and confirmed in all respects. Section 3. 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 4. 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 5. The provisions of this ordinance shall become effective thirty (30) days from the date of first publication as provided by law. ***END*** Council on the day of roved by the Mayor and City Council notice requirements of the Approved as to form and legality on to STATE OF OKLAHOMA, TULSA COUNTY, ss: Bill R. Retherford, of lawful age, being duly sworn and authorized, says that he is the publisher of the Owasso Reporter, a weekly newspaper published in the City of Owasso, Tulsa County, Oklahoma, a news- paper qualified to publish legal notices, advertise- ments and publications as provided in Section 106 of Title 25, Oklahoma Statutes 1971 and 1983 as amended, and thereafter, and complies with all other requirements of the laws of Oklahoma with reference to legal publications. That said notice, a true copy of which is attached hereto, was published in the regular edition of said newspaper during the period and time of publication and not in a supplement, on the following dates: Subscribed and sworn to before me this 29th PUBLISHER'S FEE $ 13 5. 8 5 Published in the Owasso Reporter, Owasso, Tulsa County, Oklahoma, Novem- ber 28, 2002. AN ORDINANCE OF THE CITY OF OWASSO, OKLAHOMA ORDINANCE NO. 724 AN ORDINANCE AMENDING THE EMPLOYEE RETIRE- MENT SYSTEM, DEFINED CONTRIBUTION PLAN FOR CITY OF OWASSO, OKLA- HOMA; PROVIDING RETIRE- MENT FOR ELIGIBLE EMPLOYEES OF CITY OF OWASSO, OKLAHOMA; PRO- VIDING FOR PURPOSE AND ORGANIZATION; PROVIDING FOR DEFINITIONS; PROVID- ING FOR ELIGIBILITY AND PARTICIPATION; PROVIDING FOR NON - ALIENATION OF BENEFITS; LOSS OF BENE- FITS FOR CAUSE AND LIMf- TATIONS OF BENEFITS; PRO- VIDING FOR EMPLOYER AND EMPLOYEE CONTRIBU- TIONS; PROVIDING FOR ACCOUNTING, ALLOCATION, AND VALUATION; PROVIDING BENEFITS, PROVIDING FOR REQUIRED NOTICE; PROVID- ING FOR AMENDMENTS AND TERMINATION; PROVIDING FOR TRANSFER TO AND FROM OTHER PLANS; CRE- ATING A COMMITTEE AND PROVIDING FOR POWERS, DUTIES, AND RIGHTS OF RETIREMENT COMMITTEE; PROVIDING FOR PAYMENT OF CERTAIN OBLIGATIONS; PROVIDING FOR DURATION AND PAYMENT OF EXPENS- ES; PROVIDING FOR EFFEC- TIVE DATE; PROVIDING FOR VESTING SCHEDULES; PRO- VIDING FOR A FUND TO FINANCE THE SYSTEM TO BE POOLED WITH OTHER INCORPORATED CITIES TOWN AND THEIR AGENCIES AND INSTRUMENTALITIES FOR PURPOSE OF ADMINIS- TRATION, MANAGEMENT, AND INVESTMENTS PART OF THE OKLAHOMA MUNICIPAL RETIREMENT FUND; PRO- VIDING FOR PAYMENT OF ALL CONTRIBUTIONS UNDER THE SYSTEM TO THE TREA- SURER OF CITY OF OWASSO, OKLAHOMA, AND FOR TRANSFER OF SUCH CONTRIBUTIONS AND FUND ASSETS TO THE OKLAHOMA, MUNICIPAL RETIREMENT FUND FOR MANAGEMENT AND INVESTMENT; PROVID- ING FOR REPEALER AND SEVERABILITY; AND DECLARING AN EMERGEN- CY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA. Sectionl. The Employee Retirement System, Defined Contribution Plan, of the City of Owasso, Oklahoma, is hereby amended as reflected on the attached Exhibit "A ", which is incorporated herein and adopt- ed by reference. These amend- ments shall become effective on July 1, 2002. Section 2. The City Clerk and Mayor be and they are hereby authorized and directed to exe- cute the amended Retirement System Plan documents and to do all the others acts necessary to put said amendment into effect and to maintain IRS qual- ifications of the Plan. The exe- cuted document attached here- to as Exhibit "A" is hereby rati- fied and confirmed in all respects. Section 3. If, regardless of cause, any section, subsection, paragraph, sentence, or clause of this ordinance, including the System as set forth "A" is held invalid or to be unconstitutional, the remaining sections, subsec- tions, 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 4. Any ordinance incon- sistent with the terms and provi- sions of this ordinance is here- by repealed; provided, howev- er, that such repeal shall be only to the extent of such incon- sistency and in all other respects this ordinance shall be cumulative of other ordinances regulating and governing the subject matter covered by this ordinance. Section 5. The provisions of this ordinance shall become effective thirty (30) days from the date of first publication as provided by law. The foregoing ordinance was introduced before the City Council of the 19th day of November, 2002, and was duly adopted and approved by the Mayor and City Council on the 19th day of November, 2002, after compliance with notice requirements of the Open Meeting Law (25 OSA, Section 301, et seq.). /s/ Michael Helm MAYOR ATTEST. /s/ Marcia Boutwell CITY CLERK Approved as to form and legali- ty on November 19, 2002. /s/ Stephen P. Gray CITY ATTORNEY MEMORANDUM TO: THE HONORABLE MAYOR & CITY COUNCIL CITY OF OWASSO FROM: MICHELE DEMPSTER HUMAN RESOURCE DIRECTOR SUBJECT: OMRF THRIFT PLAN AMENDMENT DATE: November 13, 2002 BACKGROUND: The OMRF Thrift Plan is an optional supplemental retirement plan available to all full-time employees. Employees can contribute up to 12% of their base wages and the City will match up to 2% of the employee's base wages $0.50 on the dollar. Employees select investment options on an individual basis. Upon implementation of the plan it was intended that the employee's contributions and the City's matching contribution be calculated on base wages without the inclusion of overtime or extra pay items. It has recently come to staffs attention that the City's plan document does not indicate this intent. Therefore, OMRF has requested that we update our plan document to designate what we consider to be base wages. Approval of the proposed Joinder Agreement and Ordinance #724 would only change the plan definition of compensation to include the following: "Compensation for this purpose shall be defined as base wages only according to the personnel policies for the City of Owasso and will exclude such items as overtime pay, holiday pay, uniform expenses and other similar reportable wages. " This change will modify our plan document to match current practice and staffs original intent. The proposed ordinance has an effective date of July 1, 2002, enacting the plan document modification retroactive to the beginning of this fiscal year. RECOMMENDATION: Staff recommends approval of the revised OMRF Master Defined Contribution Plan Joinder Agreement and Ordinance #724 modifying our plan document definition of compensation effective July 1, 2002. ATTACHMENT: Ordinance 4724 OMRF Master Defined Contribution Plan Joinder Agreement OKLAHOMA MUNICIPAL RETIREMENT FUND MASTER DEFINED CONTRIBUTION PLAN JOINDER AGREEMENT City of Owasso, a city, town, agency, instrumentality, or public trust located in the State of Oklahoma, with its principal office at Owasso, Oklahoma, hereby establishes a Defined Contribution Plan to be known as City of Owasso Plan (the "Plan") in the form of the Oklahoma Municipal Retirement Fund Master Defined Contribution Plan. Except as otherwise provided herein, the definitions in Article H of the Plan apply. 1. Dates. This instrument is a new Plan effective [ X ] This instrument is an amendment, restatement and continuation of the Previous Plan, which was originally effective July 1, 1992. This instrument is intended to conform to the changes required by the Tax Reform Act of 1986, the Omnibus Budget Reconciliation Act of 1986, the Omnibus Budget Reconciliation Act of 1987, the Unemployment Compensation Amendments of 1992, the Uniformed Service Employment and Reemployment Rights Act of 1994, the Uruguay Round Agreements Act of 1993, the Small Business Job Protection Act of 1996, the Taxpayer Relief Act of 1997 and other applicable laws, regulations, and administrative authority. Therefore, the effective date of this.Joinder Agreement is July 1, 2002, except as otherwise stated in the Plan and the Joinder Agreement. 2. Employee. The word "Employee" shall mean: [ X ] Any person, other than a Leased Employee, who, on or after the Effective Date, is considered to be a regular full -time employee in accordance with the Employer's standard personnel policies and practices, and is receiving remuneration for such services rendered to the Employer (including any elected official and any appointed officer or employee of any department of the Employer, whether governmental or proprietary in nature), including persons on Authorized Leave of Absence. Employees shall not include independent contractors. Elected members of the City Council shall not be considered to be Employees solely by reason of their holding such office. [ ] Any person, other than a Leased Employee, who, on or after the Effective Date, is considered to be a regular employee in accordance with the Employer's standard personnel policies and practices (including part-time, seasonal and temporary employees), and is receiving remuneration for such services rendered to the Employer (including any elected official and any appointed officer or employee of any department of the Employer, whether governmental or proprietary in nature), including persons on Authorized Leave of Absence. Employees shall not include independent contractors. Elected members of the City Council shall not be considered to be Employees solely by reason of their holding such office. [ ] Any person who, on or after the Effective Date,. The word "Employee" shall not include: [ ] Any person who is currently accruing benefits under any other state or local retirement system. [ ] Any person who 3. Eligibility. Employees shall be eligible to participate in the Plan: (Select only one) [ ] _ months (any number of months up to twelve) after the later of the Employee's Employment Commencement Date or the date the definition of Employee shown above was met. [ X ] On the Employee's Employment Commencement Date. (If the Employer has opted out of Old Age and Disability Insurance (OADI), this option must be elected). 4. Plan Design. The Employer hereby elects the following Plan design: [ ] Pick -up Option. Each Employee shall be required to contribute to the Plan % (not to exceed 10° /") of his or her Compensation. These contributions shall be picked up and assumed by the Employer and paid to the Fund in lieu of contributions by the Participant. No Participant shall have the option of receiving the contributed amounts directly as Compensation. [ X ] Thrift Plan Option. [ X ] A Participant may elect to contribute to the Plan for each Valuation Period an amount which is at least 1 %, but no more than 2.00% (not to exceed 15 %) of his Compensation ( "Mandatory Contributions "). Compensation for this purpose shall be defined as base wages only according to the personnel policies for the City of Owasso and will exclude such items as overtime pay, holiday pay, uniform expenses and other similar reportable wages. Mandatory Contributions shall be made by payroll deductions. A Participant shall authorize such deductions in writing on forms approved by, and filed with the Committee. [ X ] The Employer shall contribute to the Fund an amount equal to 50% of the total Mandatory Contributions contributed by Participants. Wa The Employer contribution together with amounts forfeited, if any, shall be allocated in the proportion which the Mandatory Contributions of each such Participant for such Valuation Period bear to the total Mandatory Contributions contributed by all such Participants for such Valuation Period. [ ] The Employer shall not contribute to the Fund a percentage of the total Mandatory Contributions contributed by Participants. [ ] Fixed Contribution. The Employer shall contribute to the Fund an amount which when added to amounts available from Amounts Forfeited in prior periods, if any, shall equal %o of the total covered Compensation of all Participants for the Valuation Period. The Employer contribution together with amounts available from Amounts Forfeited in prior periods shall be allocated in the proportion which the Compensation of each such Participant for such Valuation Period bears to the Compensation paid to all such Participants for such Valuation Period. [ ] Variable Funding g rati on. [ ] The Employer intends to make a contribution to the Plan for the benefit of the Participants for each Valuation Period. The contribution may be varied from year to year by the Employer. (Select one option below) [ ] The Employer contribution together with Amounts Forfeited, if any, shall be allocated in the proportion that each such Participant's total points awarded bear to the total points awarded to all Participants with respect to such year. A Participant shall be awarded one point for each Year of Service. [ ] The Employer contribution together with Amounts Forfeited, if any, shall be allocated in the proportion which the Compensation of each such Participant for such Valuation Period bears to the Compensation paid to all such Participants for such Valuation Period. [ ] 401(k) Funding Option. (This Option available only if elected prior to May 1, 1986) [ ] Participant Deferral Elections shall be allowed under the provisions of Section 4.9 of the Plan. Participants shall be allowed to defer no more than % of their Compensation for each election period. The election period shall be the one month period preceding each [ ] Valuation Period [ ] calendar quarter of the Valuation Period. [ ] No Employer Contribution Option. -3- 5. Other Participant Contribution Options. [ X ] Voluntary Nondeductible Contributions by Participants shall be allowed under the provisions of Section 4.5 of the Plan (but not exceeding 15% of Compensation). [ ] A Participant may not withdraw Voluntary Nondeductible Contributions. [ ] Participants shall not contribute to the Plan. 6. Self - Directed Investments. [ X ] Are permitted. [ ] Are not permitted. 7. Allocation of Forfeitures Available. [ ] Shall be added to Employer contribution. [ X ] Shall reduce the Employer contribution. 8. Valuation Date. Regular valuation dates shall be (select one): [ ] annual [ ] semi - annual [ ] quarterly [ X ] monthly For purposes of this Adoption Agreement, the words "Valuation Period" means the period of time between two valuation dates. 9. Service for Worker's Compensation Period. If a Participant is on an Authorized Leave of Absence and is receiving worker's compensation during such Authorized Leave of Absence, such Participant [ X ] shall be credited with Service for such period for purposes of vesting only and not for purposes of allocations of Employer Contributions. [ ] shall not be credited with Service for such period. 0 10. Vesting. For purposes of vesting under Section 6.4 of the Plan, the Employer hereby elects the following Option: [ ] Option A [ ] Option B Vested Forfeited Years of Service Percentage Percentage less than 1 0% 100% at least 1 but less than 2 10% 90% at least 2 but less than 3 20% 80% at least 3 but less than 4 30% 70% at least 4 but less than 5 40% 60% at least 5 but less than 6 50% 50% at least 6 but less than 7 60% 40% at least 7 but less than 8 70% 30% at least 8 but less than 9 80% 20% at least 9 but less than 10 90% 10% 10 or more 100% 0% [ ] Option B [ ] Option C Years of Service Vested Forfeited Percentage Percentage less than 5 Vested Forfeited Years of Service Percentage Percentage less than 3 0% 100% at least 3 but less than 4 20% 80% at least 4 but less than 5 40% 60% at least 5 but less than 6 60% 40% at least 6 but less than 7 80% 20% 7 or more 100% 0% [ ] Option C Years of Service Vested Forfeited Percentage Percentage less than 5 0% 100% at least 5 but less than 6 50% 50% at least 6 but less than 7 60% 40% at least 7 but less than 8 70% 30% at least 8 but less than 9 80% 20% at least 9 but less than 10 90% 10% 10 or more 100% 0% -5- [ X ] Option D The Schedule indicated below: [ ] Option E To comply with the Internal Revenue Service Regulations promulgated pursuant to the Code Section 3121(b)(7)(F), Participants who are part-time, seasonal or temporary Employees will have immediate vesting. If this Option E is elected, one of the other Options above must also be elected for Participants who are not part-time, seasonal or temporary Employees). 11. Participant Loans. [XI Participant loans shall be offered pursuant to Section 6.14 of the Plan. [ ] Participant loans shall not be offered. 0 Vested Forfeited Years of Service Percentage Percentage less than 2 0% 100% at least 2 but less than 3 40% 60% at least 3 but less than 4 60% 40% at least 4 but less than 5 80% 20% 5or more 100% 0% [ ] Option E To comply with the Internal Revenue Service Regulations promulgated pursuant to the Code Section 3121(b)(7)(F), Participants who are part-time, seasonal or temporary Employees will have immediate vesting. If this Option E is elected, one of the other Options above must also be elected for Participants who are not part-time, seasonal or temporary Employees). 11. Participant Loans. [XI Participant loans shall be offered pursuant to Section 6.14 of the Plan. [ ] Participant loans shall not be offered. 0 12. Committee. The Committee, consisting of the following members, agrees to administer the Plan pursuant to the provisions thereof. Randy Brogdon Name (Please print) Michael Helm Name (Please print) Rebecca Armstrong Name (Please print) Susan Kimball Name (Please print) Gary Cochran Name (Please print) Name (Please print) Name (Please print) Name (Please print) Name (Please print) Name (Please print) ere Signature Signature Signature Signature Signature Signature Signature Signature Signature Signature