2011-41 Amended Adoption Agreement with ICMA RESOLUTION 2011-41
11111 A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
NORTH PALM BEACH, FLORIDA, APPROVING AN AMENDED
ADOPTION AGREEMENT WITH ICMA RETIREMENT CORPORATION TO
MODIFY THE TERMS OF THE VILLAGE MANAGER RETIREMENT PLAN
AND AUTHORIZING THE MAYOR AND VILLAGE CLERK TO EXECUTE
SAME; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, through the adoption of Resolution 74-96, the Village Council approved an Adoption
Agreement with ICMA Retirement Corporation for the establishment of a money purchase
retirement plan for the Village Manager; and
WHEREAS, subsequent to the negotiation of the Village Manager's Employment Agreement,
Village Administration discovered inconsistencies between the terms of the Adoption Agreement
and both the Village Manager's Agreement and the Village's past practices; and
WHEREAS, the Village Council wishes to execute an Amended Adoption Agreement to convect
such inconsistencies and provide greater flexibility for both the Village and the Village Manager.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE
OF NORTH PALM BEACH, FLORIDA as follows:
Section 1. The foregoing recitals are ratified as true and incorporated herein.
Section 2. The Village Council hereby approves the Amended Adoption Agreement with
ICMA Retirement Corporation, a copy of which is attached hereto and incorporated herein, and
authorizes the Mayor and Village Clerk to execute the Amended Adoption Agreement on behalf
of the Village.
Section 3. All resolutions or parts of resolutions in conflict with this Resolution are hereby
repealed to the extent of such conflict.
Section 4. This Resolution shall be effective immediately upon adoption.
PASSED AND ADOPTED THIS 13th DAY OF OCTOBER, 2011.
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Page 1 of 10
ICMA RETIREMENT CORPORATION
GOVERNMENTAL MONEY PURCHASE PLAN & TRUST
(AMENDED) ADOPTION AGREEMENT
Plan# 109501
The Employer hereby establishes a Money Purchase Plan and Trust to be known as The Village of North
Palm Beach Village Manager Plan (the "Plan ") in the form of the ICMA Retirement Corporation
Governmental Money Purchase Plan and Trust (MPP O1 /O1 /06).
This Plan is an amendment and restatement of an existing defined contribution money purchase plan.
Yes ❑ No
If yes, please specify the name ofthe defined contribution money purchase plan which this Plan hereby
amends and restates:
The Village of North Palm Beach Executive Money Purchase Plan
Effective Date: November 1, 2011
Summary of Change: ER / EE Contribution Percentages Amended
I. Employer: The Village of North Palm Beach
II. The Effective Date of the Plan shall be the first day of the Plan Year during which the Employer
adopts the Plan, unless an alternate Effective Date is hereby specified: _1/1/1997_ (e. g., January 1,
2006 for the MPP 01/01/06 Plan)
III. Plan Year will mean:
❑ The twelve (11 21) consecutive month period which coincides with the limitation year. (See Section
5.03(f) of the Plan.)
0 The twelve (12) consecutive month period commencing on _01 /01 _ and each anniversary
thereof.
IV. Normal Retirement Age shall be age _60_ (not to exceed age 65).
401 Money Purchase Plan Adoption .Agreement
Page 2 of 10
V. ELIGIBILITY REQUIREMENTS:
1. The following group or groups of Employees are eligible to participate in the Plan:
X Village Manager
All Full-Time Employees
Salaried Employees
Non -union Employees
Management Employees
Public Safety Employees
General Employees
Other Employees (specify describe the group(s) of eligible
employees below)
The group specified must correspond to a group of the same designation that is defined in the
statutes, ordinances, rules, regulations, personnel manuals or other material in effect in the state or
locality of the Employer. Also, the eligibility requirements for participation in the Plan cannot be
such that Employees become Participants only in the Plan Year in which the Employees terminate
employment (i e., stand -alone final pay plans).
2. The Employer hereby waives or reduces the requirement of a twelve (12) month Period of Service
for participation. The required Period of Service shall be N/A (write N/A if an Employee is
eligible to participate upon employment).
If this waiver or reduction is elected, it shall apply to all Employees within the Covered
Employment Classification.
3. A minimum age requirement is hereby specified for eligibility to participate. The minimum age
requirement is' N /A_ (not to exceed age 21. Write N/A if no minimum age is declared.)
VI. CONTRIBUTION PROVISIONS
1. The Employer shall contribute as follows (choose all that apply):
❑X Fixed Employer Contributions With or Without Mandatory Participant Contributions.
(If section B or C is chosen, please complete section D. Section E is optional.)
A. Fixed Employer Contributions. The Employer shall contribute on behalf of each
Participant _15.0_% of Earnings or $ for the Plan Year (subject to the
limitations of Article V of the Plan). Mandatory Participant Contributions
0 are required 0 are not required
to be eligible for this Employer Contribution.
401 Money Purchase Plan Adoption Agreement 2
Page 3 of 10
B. Mandatory Participant Contributions for Plan Participation. A Participant is required to
contribute (subject to the limitations of Article V of the Plan)
(i) % of Earnings,
(ii) $ or
(iii) a whole percentage of Earnings between the range of _3% to 10% (insert range
of percentages between 0% and 20% (e.g., 3 %, 6 %, or 20 %; S% to 7 %)), as
designated by the Employee in accordance with guidelines and procedures
established by the Employer
for the Plan Year as a condition of participation in the Plan. A Participant shall
not have the right to discontinue or vary the rate of such contributions after
becoming a Plan Participant.
The Employer hereby elects to "pick up" the Mandatory Participant
Contributions.)
El Yes ❑ No
C. Mandatory Participant Contributions for this Portion of the Plan. Each Employee
eligible to participate in the Plan shall be given the opportunity to irrevocably elect to
participate in the Mandatory Participant Contribution portion of the Plan by electing to
contribute (insert range of percentages between 0% and
20% (e.g., 3 %, 601o, or 20 %; S% to 7%)) of the Employee's Earnings to the Plan for each
Plan Year (subject to the limitations of Article V of the Plan).
A Participant shall not have the right to discontinue or vary the rate of such contributions
after becoming a Participant in this portion of the Plan.
The Employer hereby elects to "pick up" the Mandatory Participant Contributions.2
❑' Yes ❑ No
D. Election Window. Newly eligible Employees shall be provided an election window of
N/A days (no more than 60 calendar days) from the date of initial eligibility during
Neither an IRS advisory letter nor a determination letter issued to an adopting Employer is a
ruling by the Internal Revenue Service that Participant contributions that are picked up by the
Employer are not includable in the Participant's gross income for federal income tax purposes.
Pick -up contributions are not mandated to receive private letter rulings, however, if an adopting
employer wishes to receive a ruling on pick -up contributions they may request one in
accordance with Revenue Procedure 2007 -4 (or subsequent guidance).
2 See footnote 1 above.
401 Money Purchase Plan Adoption Agreement
Page 4 of 10
which they may make the election to participate in the Mandatory Participant
Contribution portion of the Plan. Participation in the Mandatory Participant Contribution
portion of the Plan shall begin the first of the month following the end of the election
window.
An Employee's election is irrevocable and shall remain in force until the Employee
terminates employment or ceases to be eligible to participate in the Plan. In the event of
re- employment to an eligible position, the Employee's original election will resume. In no
event does the Employee have the option of receiving the pick -up contribution amount
directly.
❑ Fixed Employer Match of Voluntary Participant Contributions.
The Employer shall contribute on behalf of each Participant % of Earnings for the Plan
Year (subject to the limitations of Article V of the Plan) for each Plan Year that such
Participant has contributed % of Earnings or $ . Under this option, there is a single,
fixed rate of Employer contributions, but a Participant may decline to make the required
Participant contributions in any Plan Year, in which case no Employer contribution will be
made on the Participant's behalf in that Plan Year.
❑ Variable Employer .patch of Voluntary Participant Contributions.
The Employer shall contribute on behalf of each Participant an amount determined as follows
(subject to the limitations of Article V of the Plan):
% of the Voluntary Participant Contributions made by the Participant for the Plan Year
(not including Participant contributions exceeding % of Earnings or
PLUS % of the contributions made by the Participant for the Plan Year in excess of
those included in the above paragraph (but not including Voluntary Participant Contributions
exceeding in the aggregate % of Earnings or $; ).
Employer Matching Contributions on behalf of a Participant for a Plan Year shall not exceed
$ or % of Earnings, whichever is more or less.
2. Each Participant may make a voluntary (unmatched), after -tax contribution, subject to the
limitations of Section 4.05 and Article V of the Plan.
Yes ❑' No
3. Employer contributions for a Plan Year shall be contributed to the Trust in accordance with the
following payment schedule (no later than the 15`h day of the tenth calendar month following the
end of the calendar year or fiscal year (as applicable depending on the basis on which the Employer
keeps its books) with or within which the particular Limitation year ends, or in accordance with
applicable law):
401 Money Purchase Plan Adoption Agreement
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_Bi- weekly
4. Participant contributions for a Plan Year shall be contributed to the Trust in accordance with the
following payment schedule (no later than the 15`h day of the tenth calendar month following the
end of the calendar year or fiscal year (as applicable depending on the basis on which the Employer
keeps its books) with or within which the particular Limitation year ends, or in accordance with
applicable law):
Bi- weekly
VII. EARNINGS
Earnings, as defined under Section 2.09 of the Plan, shall include:
(a) Overtime
(b) Bonuses
❑ Yes ONo
❑ Yes ONo
(c) Other Pay (specifically describe any other types of pay to be included below)
VIII. The Employer will permit rollover contributions in accordance with Section 4.11 of the Plan.
❑X Yes ❑ No
IX. LIMITATION ON ALLOCATIONS
If the Employer maintains or ever maintained another qualified plan in which any Participant in this
Plan is (or was) a participant or could possibly become a participant, the Employer hereby agrees to
limit contributions to all such plans as provided herein, if necessary in order to avoid excess
contributions (as described in Sections 5.02 of the Plan).
1. If the Participant is covered under another qualified defined contribution plan maintained by the
Employer, the provisions of Section 5.02(a) through (0 of the Plan will apply unless another
method has been indicated below.
401 Money Purchase Plan Adoption Agreement
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❑ Other Method. (Provide the method under which the plans will limit total Annual Additions
to the Maximum Permissible Amount, and will properly reduce any excess amounts, in a
manner that precludes Employer discretion.)
2. The limitation year is the following 12- consecutive month period:
N/A
X. VESTING PROVISIONS
The Employer hereby specifies the following vesting schedule, subject to (1) the minimum vesting
requirements and (2) the concurrence of the Plan Administrator. (For the blanks below, enter the
applicable percent —from 0 to 100 (with no entry after the year in which 100% is entered), in
ascending order.)
Period of
Service Percent
Completed Vested_
Zero
_100—%
One
%
Two
%
Three
%
Four
%
Five
%
Six
%
Seven
%
Eight
%
Nine
%
Ten
%
XI. Loans are permitted under the Plan, as provided in Article XIII of the Plan:
XII.
❑X Yes ❑ No
1. In- service distributions are permitted under the Plan after a participant attains (select one of
the below options as provided in Section 9.08):
El Age 70 1/2 (Default)
❑ Normal Retirement Age
401 Money Purchase Plan Adoption Agreement 6
Page 7 of 10
❑ Not permitted at any age
2. Tax -free distributions of up to $3,000 for the payment of qualifying insurance premiums for
eligible retired public safety officers are available under the Plan.
❑ Yes 0 No (Default)
XIII. In- service distributions of the Rollover Account are permitted under the Plan as provided in
Section 9.07.
❑ Yes ONo (Default)
XIV. SPOUSAL PROTECTION
The Plan will provide the following level of spousal protection (select one):
❑ A. Participant Directed Election. The normal form of payment of benefits under the Plan is a
lump sum. The Participant can name any person(s) as the Beneficiary of the Plan, with no
spousal consent required.
0 B. Beneficiary Spousal Consent Election (Article XII). The normal form of payment of
benefits under the Plan is a lump sum. Upon death, the surviving spouse is the Beneficiary,
unless he or she consents to the Participant's naming another Beneficiary. (This is the default
provision under the Plan if no selection is made.)
❑ C. QJSA Election (Article XVII). The normal form of payment of benefits under the Plan is a
50% qualified joint and survivor annuity with the spouse (or life annuity, if single). In the
event of the Participant's death prior to commencing payments, the spouse will receive an
annuity for his or her lifetime.
XV. FINAL PAY CONTRIBUTIONS (N /A)
The Plan will provide for Final Pay Contributions if either 1 or 2 below is selected.
Final Pay shall be defined as (select one):
A. ❑
Accrued unpaid vacation
B. ❑
Accrued unpaid sick leave
C. ❑
Accrued unpaid vacation and sick leave
D. ❑
Other (insert definition of final pay)
401 Money Purchase Plan Adoption Agreement 7
Page 8 of 10
that would otherwise be payable to the Employee in cash upon termination.
❑ 1. Employer Final Pay Contribution. The Employer shall contribute on behalf of each
Participant % of Final Pay to the Plan (subject to the limitations of Article V of
the Plan).
❑ 2. Employee Designated Final Pay Contribution. Each Employee eligible to participate in
the Plan shall be given the opportunity at enrollment to irrevocably elect to contribute
% (insert fixed percentage of final pay to be contributed) or up to % (insert
maximum percentage of final pay to be contributed) of Final Pay to the Plan (subject to the
limitations of Article V of the Plan).
Once elected, an Employee's election shall remain in force and may not be revised or
revoked. If the employer elects to "pick up" these amounts, in no event does the Employee
have the option of receiving the pick -up contribution amount directly.
The Employer hereby elects to "pick up" the Employee Designated Final Pay Contribution
thereby treating such contributions as Employer -made contributions for federal income tax
purposes.
❑ Yes ❑ No
XVI. ACCRUED LEAVE CONTRIBUTIONS (N /A)
The Plan will provide for accrued unpaid leave contributions if either 1 or 2 is selected below.
Accrued Leave shall be defined as (select one):
A. ❑
Accrued unpaid vacation
B. ❑
Accrued unpaid sick leave
C. ❑
Accrued unpaid vacation and sick leave
D. ❑
Other (insert definition of accrued leave)
that would otherwise be payable to the Employee in cash.
❑ 1. Employer Accrued Leave Contribution. The Employer shall contribute as follows
(choose one of the following options):
❑ For each Plan Year, the Employer shall contribute on behalf of each Eligible Participant
the unused Accrued Leave in excess of (insert number of hours /days /weeks)
to the Plan (subject to the limitations of Article V of the Plan).
401 Money Purchase Plan Adoption Agreement
Page 9 of 10
❑ For each Plan Year, the Employer shall contribute on behalf of each Eligible Participant
% of unused Accrued Leave to the Plan (subject to the limitations of Article
V of the Plan).
❑ 2. Employee Designated Accrued Leave Contribution.
Each eligible Participant shall be given the opportunity at enrollment to irrevocably elect to
contribute % (insert fixed percentage of accrued unpaid leave to be contributed) or
up to % (insert maximum percentage of accrued unpaid leave to be contributed)
of Accrued Leave to the Plan (subject to the limitations of Article V of the Plan).
Once elected, an Employee's election shall remain in force and may not be revised or
revoked. If the employer elects to "pick up" these amounts, in no event does the Employee
have the option of receiving the pick -up contribution amount directly.
The Employer hereby elects to "pick up" the Employee Designated Final Pay Contribution
thereby treating such contributions as Employer -made contributions for federal income tax
purposes.
❑ Yes ❑ No
In order to allow for Final Pay Contributions and /or Accrued Leave Contributions, as defined in
sections XV and XVI above, the Plan must also include additional sources of ongoing contributions,
such as Fixed Employer Contributions or Mandatory Participant Contributions. In accordance with
IRS Guidance, ICMA -RC will not process Final Pay Contribution or Accrued Leave Contribution
Features as part of a "Stand Alone" Final Pay Plan.
XVII. The Employer hereby attests that it is a unit of state or local government or an agency or
instrumentality of one or more units of state or local government.
XVIII. The Plan Administrator hereby agrees to inform the Employer of any amendments to the Plan
made pursuant to Section 14.05 of the Plan or of the discontinuance or abandonment of the
Plan.
XIX. The Employer hereby appoints the ICMA Retirement Corporation as the Plan Administrator
pursuant to the terms and conditions of the ICMA RETIREMENT CORPORATION
GOVERNMENTAL MONEY PURCHASE PLAN & TRUST.
The Employer hereby agrees to the provisions of the Plan and Trust.
XX. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption
Agreement may result in disqualification of the Plan.
401 Money Purchase Plan Adoption Agreement 9
Page 10 of 10
XXI. An adopting Employer may rely on an advisory letter issued by the Internal Revenue Service as
evidence that the Plan is qualified under section 401 of the Internal Revenue Code to the extent
provided in applicable IRS revenue procedures and other official guidance.
In Witness Whereof, the Employer hereby causes this Agreement to be executed on this /3 day of
7/G1V!/&-/?' 201/.
EMPLOYER ICMA RETIREMENT CORPORATION
777 North Capital St., NE
Washington, DC 20002 -4290
202 - 962 -8096
By: - By: 0"�-LNn'
Title: Title:
Attest: ��2Gi��TJ'�'( Attest:
n
-T 1,9 2011
401 Money Purchase Plan Adoption Agreement 10