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AN ORDINANCE ESTABLISHING A DEFERRED COMPENSATION PLAN FOR THE CITY OF JONESBORO.
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WHEREAS, The City of Jonesboro has determined that in order to attract and retain qualified employees, it is necessary to offer a deferred compensation plan;
WHEREAS, the City of Jonesboro has reviewed the plan document for the Arkansas Municipal League (AML) Deferred Compensation Plan (PLAN) and to the extent it deemed necessary obtained legal advice regarding the Plan and the impact of participating in the Plan;
WHEREAS, the City of Jonesboro wishes to participate in the Plan to provide benefits to its employees;
WHEREAS, the City of Jonesboro has determined that by participating in the AML Plan it will reduce overall administrative costs of operating a plan, and afford attractive investment options to its Employees;
WHEREAS, the City of Jonesboro is an Employer as defined in the Plan;
WHEREAS, the City of Jonesboro has executed an Adoption Agreement for the Plan; and
WHEREAS, the City Council is authorized by law to adopt this ordinance approving the Adoption Agreement on behalf of the City of Jonesboro;
NOW THEREFORE, BE IT ENACTED by the City Council for the City of Jonesboro, Arkansas that:
SECTION 1: The City of Jonesboro adopts the Plan and the Trust Agreement (Trust) for the Plan for its Employees.
SECTION 2: The City of Jonesboro acknowledges that the Executive Committee of the AML will serve as the board of trustees of the AML Defined Contribution and Deferred Compensation Plan (Trustees) and shall only be responsible for the Plan and have no responsibility for other employee benefit plans maintained by the City of Jonesboro.
SECTION 3: The City of Jonesboro is authorized to sign all documents necessary to adopt the Plan and by so signing, be bound by the terms of the Plan as stated in the Adoption Agreement and Plan or other Plan documents. The City of Jonesboro reserves the right to amend its elections under the Adoption Agreement, so long as the amendment is not inconsistent with the Plan or the Internal Revenue Code or other applicable law and is approved by the Trustees of the Plan.
SECTION 4:
(A) The City of Jonesboro agrees that it shall abide by the terms of the Plan and the Trust, including amendments to the Plan and the Trustees of the Plan, all investment, administrative, and other service agreements of the Plan and the Trust, and all applicable provisions of the Internal Revenue Code and other applicable law.
(B) The City of Jonesboro accepts the administrative services to be provided by AML and any services provided by an outside service provider as selected by the Trustees. The City of Jonesboro acknowledges that fees not to exceed .35% with respect to the services provided and that such fees may be deducted from the Participants’ Account.
SECTION 5:
(A) The City of Jonesboro may terminate its participation in the Plan, including but not limited to, its contribution requirements, by way of:
(1) An ordinance of the City Council terminating its participation in the Plan.
(2) The ordinance must specify when the participation will end.
The trustees shall determine whether the ordinance complies with the terms of the Plan, and all applicable federal and state laws. The Trustees shall also determine an appropriate effective date, and shall provide appropriate forms to terminate ongoing participation. However, distributions under the Plan of existing accounts to Participants will be made in accordance with the Plan.
(B) The City of Jonesboro acknowledges that the Plan contains provisions for involuntary Plan termination.
SECTION 6: The City of Jonesboro acknowledges that all assets held in connection with the plan, including all contributions to the Plan, all property and rights acquired or purchased by such amounts and all income attributable to such amounts, property or rights shall be held in trust for the exclusive benefit of Participants and their Beneficiaries under the Plan. No part of the assets and income of the Plan shall be used for, or diverted to, purposes other than for the exclusive benefit of Participants and their Beneficiaries and for defraying, reasonable expenses of the Plan. All amounts of compensation deferred pursuant to the Plan, all property and rights acquired or purchased with such amounts and all income attributable to such amounts , are held as part of the Plan. All contributions to the Plan shall be transferred to the trustees to be held, managed, invested and distributed as part of the Trust Fund in accordance with the provisions of the Plan. All contribution to the Plan must be transferred b y the Participating Employer to the Trust Fund. All benefits under the Plan shall be distributed solely from the trust Fund pursuant to the Plan.
SECTION 7: It is the intent of the City of Jonesboro that this Ordinance and the approval of Participation in the AML Deferred Compensation Plan supercedes, revokes and repeals the City of Jonesboro’s prior approval of participation in the City’s 457 Deferred Compensation Plan for Non Uniformed Employees, currently administered by Regions Bank or any other such programs that may have been previously approved by ordinance or resolution. All new Deferred Compensation contributions made by employees after implementation of the Plan will be made to the Plan. Roll over of prior contributions into the AML plan will be at the discretion of each individual employee with respect to his/her individual account.
SECTION 8: It is the intent of the City of Jonesboro that this Plan shall be for all employees-uniform and non uniform. For an employee to be eligible he/she must be a full time employee and have worked for the City of Jonesboro for at least 6 months. An employee may change the percentage of their contributions once a month, to be effective the first pay period of the month following the change. Investment changes may be made daily by voice response system or internet website. There shall be no waiting period for receipt of funds when an employee leaves the City for a reason other than retirement. Payment will be made, within a reasonable time, following the processing of the required withdrawal forms. Loans to participants from the Plan shall not be permitted. Withdrawal of funds for emergencies shall be according to IRS regulations.
SECTION 9: It is the intent of the City of Jonesboro that their current 457 Plan for non uniform city employees be transferred from Regions Bank to Citi Street.
That an emergency is declared to exist and this ordinance being necessary for the preservation of the public peace, health and safety shall take effect from and after its passage and approval.
PASSED AND ADOPTED this the 4th day of August, 2003