Loading...
142 Employee Compensation Plan AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselor5 P,O. Box 427 Meridian, Idaho 83642 Telephone 888-4461 RESOLUTION NO. /12 A RESOLUTION OF THE CITY OF MERIDIAN ADOPTING A GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN FOR THE CITY EMPLOYEES OF THE CITY OF MERIDIAN; NAMING AN INITIAL CONSULTANT AND ADVISOR FOR THE PLAN; SETTING FORTH THAT THE PLAN SHALL BE MANAGES BY A GROUP OF TRUSTEES; NAMING AND APPOINTING THE INITIAL TRUSTEES GROUP AND SETTING FORTH THE TERMS OF OFFICE FOR THE INITIAL TRUSTEES AND PROVIDING FOR SUCCESSORS; AUTHORIZING THE TRUSTEES TO SIGN ALL APPLICATIONS AND OTHER PLAN DOCUMENTS AND PAPERS; AND PROVIDING AN EFFECTIVE DATE. ItJHEREAS, Internal Revenue Code, Section 457 authorizes and allows the City of Meridian to set up and establish a nonqualified deferred compensation plan; WHEREAS, some of the city employees of the City of Meridian have requested the City to adopt and implement a plan for deferred compensation; WHEREAS, the City has considered the concept of deferred compensation and has looked into a couple of programs for a deferred compensation plan; WHEREAS, it is in the best interests of the city employees to have a deferred compensation plan available to them; WHEREAS, Shearson Lehman Brothers has presented a proposal to the City of Meridian for a nonqualified deferred compensation plan; and WHEREAS, there are applications and documents to be executed to implement the plan and there is a need to appoint a Trustees group to assist with the deferred compensation plan and RESOLUTION ADOPTING DEFERRED COMPENSATION PLAN Page - 1 AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselors P,O, Box 427 Morld lan, Idaho 83642 Telephone 888-4461 in ves tmen t. NOH, THEREFORE~ BE IT RESOLVED BY THE r~AYOR AND THE CITY COUNCIL OF THE CITY OF MERIDIAN, IDAHO: SECTION 1. That the City of Meridian hereby adopts that particular deferred compensation plan, attached hereto as Exhibit "A" and by this reference incorporated herein as if set forth in full herein, known as the GENERAL EMPLOYEES NONQUAlIFIED DEFERRED COMPENSATION PLAN OF THE CITY OF MERIDIAN~ as the deferred compensation plan for the city employees of the City of Meridian; said plan shall herein after be referred to as the IIPLANII. SECTION 2. That Shearson Lehman Brothers~ investment firm is hereby named as the initial advisor and consultant of the Plan; that the Trustees Group may change advisors and consultants for the Plan as the Trustees Group deems appropriate. SECTION 3. That the Plan shall be managed by a Trustees Group which shall be made up of city elected officials and/or employees. SECTION 4. That the initial Trustees Group shall consist of Grant P. Kingsford, Jack Niemann, Janice Gass, and Earl Ward; that Grant P. Kingsford shall serve a term of four (4) years; that Jack Niemann shall serve a term of three (3) years; that Janice Gass shall serve a term of two (2) years; that Earl Hard shall serve a term of one (1) year; that upon the termination of the term of each Trustee above name the Mayor shall appoint a successor to that Trustees term and which successor shall be RESOLUTION ADOPTING DEFERRED COMPENSATION PLAN Page - 2 AMBROSE, FITZG ERALD & CROOKSTON Attorneys and Counselors P,O. Box 427 Meridian, Idaho 83642 Telephono 888-4461 approved by the City Council; that the Trustees shall serve at the pleasure of the Mayor and City Council and may be removed without cause by the City Council and upon removal the Mayor shall appoint a successor who shall be confirmed by the City Council and the successor shall serve the unexpired term of his predecessor SECTION 5. That the Trustees Group is hereby authorized to sign all appl icati ons and other documents pertaining to the Plan, including, but not limited to an application for the American Funds Group; that a majority of the Trustees must sign all documents, applications and other papers. PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR OF THE CITY OF MERIDIAN, this 15th day of October, 1991. APPROVED: ~~-K~~R---- ATTEST: , I ..--/ l " / , C fT I( CL Efn("---- RESOLUTION ADOPTING DEFERRED COMPENSATION PLAN Page - 3 AMBROSE, FITZGERALD & CROOKSTO N Attorneys and Counselors P,O, Bo. 427 Merldlan,ldeho 63642 Telephono 688.4461 EXHIBIT "A" GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN WHEREAS, The City of Meridian desires to provide a Section 457 plan for general employees deferred compensation. WHEREAS, The general employees deferred compensation Plan Trustee Group recommends the following deferred compensation plan in order to comply with the Internal Revenue Code to meet certain trustee objectives. Now, therefore, by executing this agreement, the City of Meridian ("Employerll) agrees to do the following: 1. COMPENSATION DEFERRAL A. Monthly Deferral. Employer shall credit on its records to a book reserve (herein called Deferred Compensation Account) for the Participants monthly contribution to the plan. This contribution shall be included as part of the employees assets. The minimum amount of compensation which may be deferred in anyone pay period is TWENTY-FIVE and NO/I00 DOLLARS ($25.00) . B. Timing and Changes. Compensation will be deferred for any calendar month only if an agreement providing for such deferral has been entered into before the 20th of such month and provided the Employee has met all probationary requirements. with respect to unearned income, the amount to be deferred may increase or decrease, by completion of a revised deferred compensation agreement form. However, such deferral of income shall be subject to maximum and minimum limitations herein and shall become effective for the calendar months beginning after the date of execution of the revised agreement. A Participant may terminate any and all deferred compensation agreements previously executed by an agreement in writing signed by Participant and Employer. However such termination only operates prospectively and does not affect amounts previously credited to the Deferred Compensation Account which remain subj ect to the provisions of the terminated agreement. C. Maximum DeferraL Except as may be permitted in Paragraph I.D. below, based upon the Employee's income the maximum amount of compensation which may be deferred under the plan for a taxable year shall not exceed the lesser of 1. SEVEN THOUSAND FIVE HUNDRED and NO/IOO DOLLARS GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN PAGE - I AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselors p,O, Box 427 Meridian, Idaho 63642 Telephone 686,4461 I! ($7,500.00); or 2. THIRTY-THREE PERCENT (33%) of the Participant's includible compensation. The term "includible compensation" means compensation for service performed for the Employer which (taking into account the provisions of Section 457 and 403 (b) of the Internal Revenue Code) is currently includible in gross income. Includible compensation for a taxable year only includes Employer compensation attributable to services performed for the Employer and includible in Participant's base annual compensation for the taxable year. D. Limited Catch-Up Clause. For any of the Participant's last three taxable years ending before the Participant attains normal retirement age, the Plan ceiling set forth in Paragraph 1. C., herein above shall be the lesser of 1. FIFTEEN THOUSAND and NO/I00 DOLLARS ($15,000,00) reduced by any annual amount excludible from the Participant's gross income for the taxable year under Section 403 (b) on account of contributions made by the Employer; or 2. The sum of (a) The plan ceiling established for purpose of Paragraph 1. C. for the taxable year (determined without regard to this paragraph), plus (b) So much of the plan ceiling established for purposes 0 f Paragraph 1. C. for taxable years bef '17e the taxable year as has not therefore been Ui under Paragraph 1.C. or this Paragraph 1.D. The limited catch-up provision in Paragraph 1. D. } restricted to: 1) use only once, 2) whether or not i has been utilized in less than all three taxable year. ending before the Participant attains normal retirement age, and 3) whether or not the Participant or former Participant rejoins the plan or participates in another eligible plan after retirement. E. Normal Retirement Age. Normal retirement age is the earliest age at which the Participant can retire under the existing retirement plan without a reduction in benefits. If a Participant continues to work beyond this age, normal retirement age shall be the age designated by the Participant GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN PAGE - 2 AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselors P.O. Box 427 Merldlan,ldaho 63642 Telaphone 688.4461 but not later than the mandatory age stated in the existing retirement plan or the date the Participant separates from Employer's service. If no age is stated, sixty-fir (65) is the assumed normal retirement age. Normal retirement age for this plan is sixty-five (65) for a combination of age plus service equal to ninety (90). Benefits will commence no later than the close of the tax year in which the Participant at~ains age seventy and one- half (70 1/2). F. INVESTMENT. The employer through the trustees is authorized to invest in such bonds, debentures, mortgages, preferred or common stock, funds and cash equivalents as deemed advisable trustees. Plans notes, mutual by the It is understood that said investment will be managed by a professional money manager. All dividends, earnings and other distributions of the Deferred Compensation Account will be reinvested on behalf of the Participant. 2. AVAILABILITY OF FUNDS. In no event shall the amount payable under the Deferred Compensation Agreement be made available to the Participant or other beneficiaries earlier than when the Participant is separated from service with the employer or is faced with an unforeseeable emergency. A. SEPARATION OF SERVICE. Separation from service occurs when Participant is separated from the service within the meaning of Section 402(e) (4) (A) (iii) of the Internal Revenue Code, relating to lump sum distributions; and on account of the Participant I s death or retirement. In the event the Participant is separated from service with the Employer, the Employer shall direct the Depository to pay Participant an amount as specified in the Settlement Option. Any alteration of the payment commencement date on the Settlement Option must be executed prior to separation or within 60 days of separation of service. If payment commencement date is not elected prior to separation of service or within 60 days after separation of service, payments shall commence 60 days after separation of service. If the Settlement Option is not signed, selecting method GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN PAGE - 3 AMBROSE, FITZGERALD & CROOKSTON Attorneys end Counselors P,O, Box 427 Meridian, Idaho 63642 Telephone 688-4461 I! of payments, prior to the payment commencement date, Employer shall make payment to Participant in accordance with Paragraph 3.B.l.(b)l.a.2. 15 year period. This method is an annual amount equal to one-fifteenth of the value of the Deferred Compensation Account in fifteen annual payments, adjusted annually for any increases or decreases in the value of said account. Such annual amount is to be paid annually, semi-annually, quarterly or monthly, as long as annual minimum is met. B. UNFORESEEABLE EMERGENCY. Unforeseeable emergency is defined as severe financial hardship to participate resulting from sudden and unexpected illness or accident of the Participant or of a dependent of the Participant, loss of Participant's property due to casualty, or similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. The circumstances constituting an unforeseeable emergency depend upon the facts of each case, but, payment may not be made to the extent that such hardship is or may be relieved: l. Through reimbursement or compensation by insurance or otherwise. 2. By liquidation of Participant's assets to the extent that liquidation would not itself cause severe financial hardship. 3. By cessation of deferrals under the Plan. 3. DISTRIBUTION OF DEFERRED COMPENSATION ACCOUNT. A. COMMENCEMENT DATE. Payments of amounts deferred commence no later than 60 days after close of the plan in which separation occurs or 60 days after close of year in which the Participant attains (or would attained) normal retirement age, whichever comes last. ... plan have B. BENEFITS OF RETIREMENT. The pay-out option designated by a Participant may be subsequently modified by the Participant before distribution begins. Should the Participant die at any time after Retirement, whether prior to or after he has begun to receive the Retirement payment(s) provided by Article 3.B.l., his designated Beneficiary or Beneficiaries shall be enti tIed to receive the balance remaining of such payment (s). If no Beneficiary is designated as provided in Paragraph 2. of this Plan, or if the designated GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN PAGE - 4 AMBROSE, FITZGERALD & CROOKSTON Attorneys and Cou nselors p,O, Box 427 Merld lan, Idaho 63642 Telephone 886-4461 Beneficiary does not survive the period during which such payment(s) are to be made, then the executors or administrators of the Participant shall receive the lump-sum amount equal to the remaining account balance. 1. Minimum Distribution. A plan meets the minimum distribution requirements of this paragraph if such plan meets the requirements of sub paragraphs (a) and (b) and (c) : (a) Application of Section 401 (a) (9) - A plan meets the requirements of this subparagraph if the plan meets the requirements of Section 401(a) (9). (b) Addi tional distribution Requirements - A plan meets the requirements of this subparagraph if - a. 1. lump sum distribution is paid. 2. monthly, quarterly, semiannual or annually over a 1) 5 year; 2) 10 year; 3) 15 year period, as long as at least 2/3 of the total amount payable with respect to the participant will be paid during the life expectancy of such participant (determined as of the commencement of the distribution), and b. any amount not distributed to the participant during his life will be distributed after the death of the participant at least as rapidly as under the method of distributions being used under subclause a. as of the date of his death. (c) Nonincreasing Benefits. A plan meets the requirements of the subparagraph if any distribution payable for a period of more than 1 year can only be made in substantially nonincreasing amounts (paid not less frequently than annually) . c. BENEFITS ON TERMINATION OF SERVICES OR DEATH PRIOR TO RETIREMENT. In the event the Participant terminates his services for reasons other than Retirement, the Participant may choose to receive the balance available under one of the following forms: 1. The Employer shall pay the Participant an amount equal to that which 1;vould be available in the Deferred Compensation Account Balance in a lump sum GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN PAGE - 5 AMBROSE, FITZGERALO & CROOKSTON AlIofneY$ and Counselors P,O, Box 427 Meridian, Idaho 83642 Telephone 888-4461 distribution. 2. The Employer shall pay the Participant an amount equal to that which would be available in the Deferred Compensation Account Balance, such payments to begin on the first day of the month next following the date of termination, and continuing for a period of sixty (60) consecutive months. 3. The Employer shall transfer to any Code Section 457 deferred compensation plan the amounts previously deferred on behalf of the Participant. 4. The amount available in the Participant's Deferred Compensation Account Balance at the time of termination shall abe deferred until such date not later than the Participant's 65th birth date when the Participant shall retire from full-time employment, at which time the balance shall be disbursed to the Participant in equal payments which shall continue for a period of sixty (60) consecutive months. The employer, in its sole discretion, may defer or accelerate the beginning of payments to a date not to extend beyond the Participant's 65th birthday, and/or make payment in a lump- sum or in installments over some period other than sixty (60) months except that once any installment payments have begun the trustees may not thereafter alter the method of settlement. D. EVENT OF DEATH OF PARTICIPANT. In the event of the death of Participant, Employer shall direct Depository to pay Participant's revocably designated beneficiary the value of Deferred Compensation Account as specified on the Designation of Beneficiary Form, over: 1. Life of beneficiary (or any shorter period) if the beneficiary is the Participant's surviving spouse, or 2. A period not beneficiary is spouse. in excess of 15 years, if the not the participant's surviving In the event of death of Participant, and in the event Participant has not filed Designation of Beneficiary, Employer shall direct the Depository to liquida te and pay the en tire De ferred GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN PAGE - 6 AMaROSE, FITZGERALD & CROOKSTON Attorneys and Counselors P,O. Box 427 Meridian, Idaho 63642 Telephone 886.4461 Compensation Account to Participant's estate. E. HARDSHIP WITHDRAWAL. In the event of the approval of a hardship withdra\'1al, Employer shall direct Depositary to pay the participant the value of the Deferred Compensation Account as of the last valuation date (September 30, xx and March 31, xx) plus contributions made since the last valuation date plus interest at a rate of five percent (5%) per annum from the date of last valuation and the contribution date(s) to the anticipated payment date. 4. PLAN TO PLAN TRANSFERS. The amount in a Deferred Compensation Account of a former Participant, shall be transferred to another eligible plan of which the former participant has become a Participant, if the following conditions are met: A. The new plan provides for acceptance of such amounts, and B. The old plan provides for such transfer if the Participant separates from service with the Employer in order to accept employment with another eligible entity. This Plan accepts amounts of compensation deferred by Participant pursuant to another eligible deferred compensation plan as stated in the prior paragraph. 5. RIGHTS OF EMPLOYER/PARTICIPANT. All amounts of compensation deferred under this Agreement, all property and rights purchased with such amounts, and all income attributable to such amounts, property, or rights, shall remain (until made available to the Participant or other beneficiary) solely the property and rights of the Employer (without being restricted to the provision of benefits under this Plan executed thereunder) subject only to the claims of the Employer's general creditors. The value of the Deferred Compensation Account represents the unsecured obligation of Employer to Participant. wi th respect to such obligations the Participant shall be an unsecured general creditor. The employer and participant agree that no trust fund is intended or created. Participant may not anticipate or assign any of the rights he or she may have under the Deferred Compensation Agreement and Employer shall reject and refuse to honor any anticipation or assignment of such rights. GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN PAGE - 7 AMBROSE, FITZGERALD & CROOKSTON Anorneys and Counsslors P,O. Box 427 Meridian, Idaho 83642 TelephonEl888-4461 'I 6. LEAVE OF ABSENCE. If a Participant is on an approved leave of absence from the Employer with compensation, or on an approved leave of absence without compensation, his participation in this Plan will continue. 7. DISTRIBUTION OF FUNDS. Administration of the plan requires participant balances twice each year as September 30. accounting for of March 31 and In order to facilitate distribution of funds as allowed by the plan the following procedure will be used. If funds are to be distributed at a date other than March 31 or September 30 the participant will receive as an interim distribution the balance in the participants account as of the previous accounting date. The participant will receive a final distribution based upon the next accounting period which will include the employee contribution since the account balance used for the interim distribution and the related plan earnings or losses for the same period. An example would be as follows: Participant terminates as of June 30, 19X1. a) Interim distribution of the participant account balance as of March 31, 19X1. b) A final distribution of the participant account balance as of September 30, 19X1. Balance would represent employee contribution after March 31, 19X1 plus net plan earnings or losses from March 31, 19X1 to June 30, 19X1. For the convenience and benefit of the participants, the participants have been allowed to make lump sum contributions into the plan based upon anticipated base annual earnings. 8. NONASSIGNABILITY. A. In general: Except as provided in Section 8. B., no participant shall have any right to commute, sell, assign, pledge, transfer or otherwise conveyor encumber the right to receive any payments hereunder, which payments and rights are expressly declared to be non-assignable and non- transferable. GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN PAGE - 8 AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselors P,O. Box 427 Meridian, Idaho 83642 Telephone 668-4461 B. Domestic Relations Order: 1. Allowance of Transfers: To the extent required under a final judgment, decree, or order (including approval of a property settlement agreement) made pursuant to a state domestic relations law, any portion of the Participant's Account may be paid or set aside for payment to a spouse, former spouse, or child of the Participant. Where necessary to carry out the terms of such an order, a separate Account shall be established with respect to the spouse, former spouse, or child who shall be entitled to make investment selections ~'i'ith respect thereto in the same manner as the Participant; any amount so set aside for a spouse, former spouse, or child shall be paid out in a limp sum at the earliest dates that the benefits may be paid to the Participant, unless the order directs a different time or form of payment. Nothing in this Section shall be construed to authorize any amount to be distributed under the Plan at a time or in a form that is not permitted under Section 457 of the Internal REvenue Code. Any payment made to a person other than the Participant pursuant to this section shall be reduced by required income tax withholding; the fact that payment is made to a person other than the Participant may not prevent such payment from being includible in the gross income of the Participant for withholding and income tax reporting purpose s. 2. Release of Liability to Participant: The Employer's liability to pay benefits to a Participant shall be reduced to the extent that amounts have been paid or set aside for payments to a spouse, former spouse, or child pursuant to Paragraph 1 of this Section. No such transfer shall be effectuated unless the Employer or Administrator has been provided ~'i'i th satisfactory evidence that the Employer and the Administrator are released from any further claim by the Participant with respect to such amounts. The Participant shall be deemed to have released the Employer and Administrator from any claim with respect to such amounts, in any case in which a. the Employer or Administrator has been served with legal process or otherwise joined in a proceeding relating to such transfer, b. the Participant has been notified of the pendency of such proceeding in the manner .prescribed by law of Idaho for service of process in such action or GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN PAGE - 9 AMBROSE. FITZGERALD & CROOKSTON Attorneys and Counsslors P,O, Box 427 Meridian, Idsho 83642 Telephon& 888-4461 I! by mail from the employer or Administrator to the Participant's last known mailing address, and c. the Participant fails to obtain an order of the court in the proceedings relieving the Employer or Administrator from the obligation to comply with the judgment, decree. or order. 3. Participation in Legal Proceedings: The Employer and Administrator shall not be obligated to defend against or set aside any judgment, decree, or order described in paragraph (a) or any legal order relating to the garnishment of the Participant's benefits, unless the full expense of such legal action is bone by the Participant. In the event that the Participant's action (or inaction) nonetheless causes the Employer of Administrator to incur such expense, the amount of the expense may be charged against the Participant's Account and thereby reduce the Employer's obligation to pay benefits to the Participant. In the course of any proceeding relating to divorce, separation or child support, the Employer and Administrator shall be authorized to disclose information relating to the Participant's Account to the Participant's spouse, former spouse, or child (including the legal representative of the spouse, former spouse, or child) , or to a court. 9. AMENDMENT OR TERMINATION OF PLAN. The Employer may at any time terminate this Plan. Upon termination, the Participants in the Plan will be deemed have withdrawn from the Plan as of the date of such termination. The participant's full compensation on a deferred basis will thereupon be restored and the committee treat such Participants as if they had terminated their services on the date of the termination and direct the Employer to pay such benefit or benefits provided in Section S11Ch t 0 non- shall 3C. 10. The Depository is not a party to the deferred compensation agreement. 11. In the event the terms of this Plan shall be in conflict with Section 457 of the Internal Revenue Code or the regulations thereunder, as amended, Employer and Participant agree to cooperate in correcting same so as to be in compliance therewith. 12. This Deferred Compensation Plan shall be binding upon the assigns and successors of Employer and upon the legal representatives of Participant. GENERAL EMPLOYEES NON QUALIFIED DEFERRED COMPENSATION PLAN PAGE - 10 AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselors P,O. Box 427 MeridIan, Idaho 83642 Telephone 688-4461 II , i 13. This Plan shall be construed under the laws of the State of Idaho. IN WITNESS WHEREOF, the parties have set their hands and seals on the date shown below. 14. This Plan shall be in full force and effect on October 15, 1991. CITY OF MERIDIAN CITY ("EMPLOYER") GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN PAGE - 11 AMBROSE, FITZGERALD & CROOKSTO N Attorneys and Counselors p,O, Box 427 Meridian, Idaho 83642 Telephone 888-4461 EXHIBIT IIBII GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN TRUSTEE DUTIES AND RESPONSIBILITIES WHEREAS, the City of Meridian, by City Council Action, has adopted an employees nonqualified deferred Compensation plan, the following described Committee is established with the duties and responsibilities described below: 1. There shall be established a General Employees Nonqualified Compensation Plan Trustee Group (Trustee Group) which shall be charged with the responsibility of administration of said deferred compensation plan. The duties, responsibilities and powers of the TRUSTEE GROUP shall be delineated by this document and no amendment shall be effective unless memorialized in an addendum equal force to this document. 2. The TRUSTEE GROUP shall be initially composed of Grant P. Kings ford, Jack Niemann, Janice Gass, and Earl Ward. The qualifications to be Trustee and the terms of office of the Trustees Group and their mode of succession has been set forth in the resolution of the City Council to which this document has been attached. All decisions of the TRUSTEE GROUP shall be by majority vote and shall be binding on the TRUSTEE GROUP. 3. A TRUSTEE GROUP has been established by action of the City Council, however, by agreement, the Trustee Group may select an investment manager by the competitive Request for Proposal process. The investment manager shall be given, by the TRUSTEE TRUSTEE DUTIES AND RESPONSIBILITIES - PAGE 1 AMBROSE, FITZGERALD & CROOKSTON Attorneys end Counselors P.O, Box 427 Meridian, Idaho 83642 Telephone 888-4461 GROUP, direction and investment guidelines sufficient to establish an investment portfolio goal. 4. The TRUSTEE GROUP shall meet at least twice yearly, once in the three months period form October to December of each year, and again during the period April to June of each year 0 Any member of the TRUSTEE GROUP may call a special meeting upon notice to other members. Such notice must be made within a reasonable period prior to the meeting. 50 The TRUSTEE GROUP shall meet to consider, but not limited to, the following: (A) Review the deferred compensation plan every two (2) years, to determine the feasibility of adjusting the plan to include alternative funding vehicles and pooling arrangements which are available and economically prudent. (B) Develop performance criteria for the evaluation of the investment manager. The investment manager may be terminated by the TRUSTEE GROUP for failure to fulfill the reasonable expectations of the TRUSTEE GROUP as measured against the performance criteria developed by the TRUSTEE GROUP. (C) Review the performance of the investment manager at least annually. Such review shall contemplate the performance of the investment manager as measured against the investment guidelines described in Paragraph 3 and anticipated performance criteria to be established by the TRUSTEE GROUP. (D) Establish hardship guidelines consistent with the intent of the General Employees Nonqualified Deferred Compensation Plan TRUSTEE DUTIES AND RESPONSIBILITIES - PAGE 2 AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselors P,O, Box 427 Meridian, Idaho 83642 Telephono 8S6.4461 and applicable Internal Revenue Service guidelines. The TRUSTEE GROUP shall review all hardship requests for the withdrawal of funds the Employees Nonqualified Deferred from General Compensation Plan in accordance with guidelines to be established by the TRUSTEE GROUP. (E) Periodically review and amend the plan document as necessary or desired to meet IRS guidelines and program objectives. 6. The TRUSTEE GROUP shall prepare an annual performance report for presentation to the employees and the City. Such report shall state the performance of the fund and the achievement of its stated objectives. DATED this~btiJ day of (Zl& fi::J h Cr~ , 1991. CITY OF MERIDIAN -btanlf1G{1I- ATTEST: TRUSTEE DUTIES AND RESPONSIBILITIES - PAGE 3