HomeMy WebLinkAboutRes 27-07 06/19/2007
RESOLUTION NO. 27 -07
A RESOLUTION FOR A LEGISLATIVE BODY RELATING TO
A MONEY PURCHASE PLAN
WHEREAS, the Village of Mount Prospect has employees rendering valuable services; and
WHEREAS, the establishment of a money purchase retirement plan benefits employees by providing
funds for retirement and funds for their beneficiaries in the event of death; and
WHEREAS, the Village of Mount Prospect desires that its money purchase retirement plan be
administered by the ICMA Retirement Corporation and that the funds held in such plan be invested in the
Vantage Trust, a trust established by public employers for the collective investment of funds held under
their retirement and deferred compensation plans:
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE
VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS:
SECTION ONE: The Village of Mount Prospect hereby establishes or has established a money purchase
retirement plan (the "Plan") in the form of the ICMA Retirement Corporation Governmental Money
Purchase Plan & Trust, pursuant to the specific provisions of the Adoption Agreement attached hereto
and made a part hereof as Exhibit "A". The Plan shall be maintained for the exclusive benefit of eligible
employees and their beneficiaries.
SECTION TWO: The Mayor and Board of Trustees of the Village hereby execute the Declaration of Trust
of the Vantage Trust, and attached hereto as Appendix B, intending this execution to be operative with
respect to any retirement or deferred compensation plan subsequently established by the Village of
Mount Prospect, if the assets of the Plan are to be invested in Vantage Trust.
SECTION THREE: The Village of Mount Prospect hereby agrees to serve as trustee under the Plan and
to invest funds held under the Plan to appropriate departments.
SECTION FOUR: The Assistant Village Manager shall be the coordinator for the Plan; shall receive
reports, notices, etc., from the ICMA Retirement Corporation of the Vantage Trust; shall
cast, on behalf of the Village of Mount Prospect, any required votes under the Vantage Trust; may
delegate any administrative duties relating to the Plan to appropriate departments; and
SECTION FIVE: The Village of Mount Prospect authorizes the Assistant Village Manager to execute all
necessary agreements with the ICMA Retirement Corporation incidental to the administration of the Plan.
SECTION FIVE: This Resolution shall be in full force and effect upon its passage and approval in the
manner provided by law.
AYES:
Corcoran, Hoefert, Juracek, Zadel
NAYS:
None
ABSENT:
Korn, Wilks
PASSED and APPROVED thi~m of June 2007.
i lQl"
Richard M. Lohrst
Mayor Pro Tem
~~~,~
'Lisa Angel
Village Clerk
H: \CLKO\files\WI N\RES\ICMApurchasepla n2007. doc
ICMA RETIREMENT CORPORATION
GOVERNMENTAL MONEY PURCHASE PLAN & TRUST
ADOPTION AGREEMENT
PLAN NUMBER 10- (,330
The Employer hereby establishes a Money Purchase Plan and Trust to be known as
~OUAJ't' PIto.5f6c!l" ~A.)lOA. .M..;..uAIt&.cA.601 PLA~ (the "Plan") in the form of the ICMA RC Governmen-
tal Money Purchase Plan and Trust. [906]
This Plan is an amendment and restatement of an existing defined contribution money purchase plan.
Yes
-X-
No
If yes, please specify the name of the defined contribution money purchase plan which this Plan hereby amends and
restates:
I.
Employer: Vh.LAtt" tJF MOrJIJ'( ?tloSP'-C.-r
[902]
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: 01 .. t:J C- .A.Ol)(
III. Plan Year will mean:
(/J The twelve (12) consecutive month period which coincides with the limitation year. (See Section 5.03{g) of
the Plan.)
( ) The twelve (12) consecutive month period commencing on
IV. Normal Retirement Age shall be age ~S- (not to exceed age 65).
and each anniversary thereof.
[288]
V. ELIGIBILITY REQUIREMENTS:
1. The following group or groups of Employees are eligible to participate in the Plan:
-l--
All Employees
All Full-Time Employees
Salaried Employees
Non-union Employees
Management Employees
Public Safety Employees
General Employees
Other (specify below) ...1 I
~u A "''f'Ae.tMe~ '( -:p
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.
MPP Adoption Agreement 1/30/2006
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 ~(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 ~ (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 one):
o Fixed Employer Contributions With Or Without Mandatory Participant Contributions.
The Employer shall contribute on behalf of each Participant . ;l.S % of Earnings or $ for the Plan
Year (subject to the limitations of Article V of the Plan). 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, as designated by the Employee in accordance with guidelines and
procedures established by the Employer
.,
Se6 A ffAeH.tttGJJ7"
~3
for the Plan Year as a condition of participation in the Plan. (Write "0" if no contribution is required.) If
Participant Contributions are required under this option, 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/Required Participant Contribution.
.:t.- Yes
No
[621 ]
[Note to Employer; 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. The Employer may seek
such a ruling.
Picked up contributions are excludable from the Participant's gross income under section 414(h)(2) ofthe
Internal Revenue Code of 1986 only if they meet the requirements of Rev. Ruls. 81-35 and 81-36, 1981-1
c.B. 255, and 87-10, 1987-1 C.B. 136. Those requirements are (1) that the Employer must specify that the
contributions, although designated as employee contributions, are being paid by the Employer in lieu of
contributions by the employee: (2) the employee must not have the option of receiving the contributed
amounts directly instead of having them paid by the Employer to the plan: and (3) the required specification
of designated employee contributions must be completed before the period to which such contributions
relate.]
) Fixed Employer Match of 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 Partici-
pant 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.
2
MPP Adoption Agreement 1/30/2006
<jv Variable Employer Match Of 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 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 Participant contributions exceeding in the aggregate _% of Earnings or $ ).
Employer Contributions on behalf of a Participant for a Plan Year shall not exceed $
whichever is more or less.
or _ % of Earnings,
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
y,
No
3. Employer contributions and Participant contributions shall be contributed to the Trust in accordance with the
following payment schedule:
S,,~ A"'''''AaHA~IJr' -:il;2..
VII. EARNINGS
Earnings. as defined under Section 2.09 of the Plan, shall include:
(a) Overtime
Yes
'L
X
No
(b) Bonuses
Yes
No
VIII. LIMITATION ON ALLOCATIONS
If the Employer maintains or ever maintained another qualified plan in which any Participant in this Plan is (or was) a partici-
pant 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 (f) of the Plan will apply unless another method has been indicated below.
) 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:
MPP Adoption Agreement 1/30/2006
3
IX. VESTING PROVISIONS
The Employer hereby specifies the following vesting schedule, subject to (1) the minimum vesting requirements as
noted and (2) the concurrence of the Plan Administrator.
Years of
Service
Completed
Zero
One
Two
Three
Four
Five
Six
Seven
Eight
Nine
Ten
Percent
Vesting
[234-239]
~%
-'L%
-'L%
~%
~%
JQ{L %
%
%
%
%
%
'5€.G A1'1" A e H M 6,0"" .:It 3
X. Loans are permitted under the Plan. as provided in Article XIII:
Yes
~ No
[751]
XI. 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.
XII. 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.
XIII. The Employer hereby appoints the ICMA-RC as the Plan Administrator pursuant to the terms and condi-
tions of the ICMA-RC GOVERNMENTAL MONEY PURCHASE PLAN & TRUST.
The Employer hereby agrees to the provisions of the Plan and Trust.
XlV. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption Agreement
may result in disqualification of the Plan.
Xv. 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.
In Witness Whereof. the Employer hereby causes this Agreement to be executed on this _ day of
.200_.
EMPLOYER
By:
ICMA RC '. ( I: I
(I " ..'" ..... i'...:
,';',.' ..I11.T".(i:J'.:~~~.t.
B ,,,. '- ,
Y' (.
Title: Corporate Secretary
Title:
Attest:
4
MPP Adoption Agreement 1/30/2006
Attachment #1
. Village Manager
. Assistant Village Manager
. Finance Director
. Deputy Finance Director
. Community Development Director
. Deputy Community Development Director
. Human Services Director
. Deputy Human Services Director
. Police Chief
. Deputy Police Chief
. Fire Chief
. Deputy Fire Chief
. Public Works Director
. Deputy Public Works Director
. Human Resources Director
. Information Technology Director
. Village Clerk
Attachment #2
Employees may contribute a maximum of 2.5% of wages at 10 years of
service. The example of the break down of the contribution level maximum
per year is below.
Years of Employer Employee
Service Contribution Contribution Total
1 .25% .25% .5%
2 .5% .5% 1%
3 .75% .75% 1.5%
4 1% 1% 2%
5 1.25% 1.25% 2.5%
6 1.5% 1.5% 3%
7 1.75% 1.75% 3.5%
8 2% 2% 4%
9 2.25% 2.25% 4.5%
10 2.5% 2.5% 5%
Attachment #3
1. Any employee hired into the positions listed in Attachment #1 after July 1,
2007 would be required to work for the Village a minimum of five years
and contribute to the plan for a minimum of five years before the funds
contributed by the Village in matching funds would be available to the
employee at the time of termination or retirement from Village
employment.
2. Employees that meet the criteria in terms of service tenure or already
appointed to the positions listed in Attachment #1 would be eligible to
participate immediately without a waiting period beyond what is already
defined.
3. In order to participate in the plan the employee must contribute a minimum
of .25% of their annual wages for each year of service the employee has
with the Village. The Village will match the employee contribution to a
minimum of .25% of wages for each year of service to the Village.
4. Employees may contribute a maximum of 2.5% of wages at 10 years of
service. The example of the break down of the contribution level maximum
per year is provided in Attachment #2.
5. Participation is voluntary in the program.
6. The funds that the employee and the employer contribute are available to
the employee upon termination or retirement. There is no minimum age for
the employee to attain in order to obtain the funds.
7. All contributions will be made on a per payroll basis.
8. There are no loan provisions available to the employee.
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