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
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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