Resolution 4394 - Laserfiche WebLink

RESOLUTION 4 3 9 4 A resolution in support of adopting an amendment to the City of Everett Hartford Insurance Deferred Compensation Plan. WHEREAS, the City of Everett heretofore established a Deferred Compensation Plan; and WHEREAS, the City of Everett desires to amend the Plan to conform with changes in the federal law brought about by the Small Business Job Protection Act of 1996 (the "Act") requiring that, within the time prescribed by such Act, eligible deferred compensation plans established and maintained by governmental employers be amended to provide that all assets of the plan be held in trust, or under one or more appropriate annuity contracts or custodial accounts, for the exclusive benefit of plan participants and their beneficiaries; and WHEREAS, it is also the desire of the City of Everett, Washington to amend the Plan in order to provide employees with certain other advantages brought about by the Act, including indexed limitation of deferred amounts and certain elections with respect to the commencement of distributions under the Plan. NOW THEREFORE, BE IT RESOLVED, that, effective January 1, 1997, except as otherwise provided, the City Council of the City of Everett hereby amends the Plan as follows: Article 11 of the Plan setting forth the rules governing the ownership of deferred amounts is deleted in its entirety and replaced with the following: 11.1 Effective January 1, 1997 all amounts of compensation deferred under the Plan, all property and rights purchased with such amounts, and all income attributable to such amounts, property or rights shall be held in trust or under one or more annuity contracts described in Section 401(f) of the Code. Except as may otherwise be permitted or required by law, no assets or income of the Plan shall be used for, or diverted to, purposes other than for the exclusive purpose of providing benefits for Participants and their Beneficiaries or defraying reasonable expenses of administration of the Plan. The following defined term is added to Article 2 of the Plan and each Section of Article 2 is renumbered appropriately: 2.2 "Adjusted" means adjusted for the cost of living at the time and in the manner as prescribed under section 456(e)(15) of the Code. Paragraphs (a) and (b) of Section 3.5 providing for regular contributions are amended to read as follows: