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1974-45 Approving Deferred Compensation Plant , ~. RESOLUTION N0. 45-74 A RESOLUTION OF THE VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA, APPROVING A DEFERRED COMPENSATION PLAN FOR VILLAGE OFFICERS AND EMPLOYEES. BE IT RESOLVED BY THE VILLAGE COUNCIL OF NORTH PAIM BEACH FI,ORI DA Section 1. The Village Council hereby approves that certain deferred. compensation plan for Village officers and employees, a copy of w}rich is attached hereto and by reference made a part of this Resolution. Section 2. The Mayor and the Village Clerk are hereby authorized and directed to sign the original of said. deferred compensation plan, and. the Village Clerk is directed to affix the Village Seal thereto. Section 3. This Resolution shall take effect immediately upon passage. ' PASSED AND ADOPTED THIS 25 DAY OF JULY, 1974. /s/ M. C. Love, Jr. VICE MAYOR ATTEST: /s/ Dolores R. Walker Village Clerk THE VILLAGE OF NORTH PALM AEACfI DEFERRED COMPENSATION PLAN 1 2. Name - The name of this Plan is "The Village of North Palm Beach Deferred Compensation Plan: (hereinafter referred to as the "Plan"). Purpose - The primary purpose of the Plan is to permit regular Village Employees to defer some part of their annual compensation which will be used to purchase annuities or other assets to provide to that employee a supplementary income at the time he retires from Village Government. 3. Definitions - For the purposes of this Plan, certain words and phrases used herein will have~the following meanings: (a) "Salary" shall mean regular basic compensation for services as an employee on a permanent basis .(other than a retirement benefit, retainer or payment for temporary employment) but shall not, except as otherwise determined by the Village include any overtime, or special payments. (b) "Deferred salary" shall mean the amount of an employee's salary not yet earned, which the employee and Village mutually agree shall be deferred in accordance with the provisions of this Plan. (c) "Retirement" shall mean withdrawal from active service with a retirement allowance granted under the provisions of the various pension ordinances governing the Village Retirement Systems. (d) "Termination" shall mean the severance of employment with the Village prior to retirement. -1- (e) "Village" shall mean the Village of North Palm Beach. (f) "Employees" shall mean all officers and employees of the Village who are listed in the Village's records as regular permanent employees. (g) "Participant" shall mean any employee who agrees to participate in this Plan. 4. Administration - This Plan shall be administered by the Village. The Village Council shall have full power and authority to adopt rules and regulations for the administration of the Plan, and to interpret, alter, amend and revoke any rules and regulations so adopted. A Committee of three (3), representing the Village of North Palm Beach, and made up of the Village Manager (Chairman), the Village Treasurer and the Village Clerk, shall administer the Plan. All decisions concerning withdrawal, payment, method of payment, investment of funds, etc., shall be solely the responsi- bility of the Committee, acting for the Village. Employees shall be entitled to make decisions solely with respect to his or her own participation. The costs of administration of the Plan shall be borne by the participants and not by the Village. 5. Participation in the Plan (a) Eligibility - All Employees not more than 65 years of age on initial enrollment are eligible to participate in this Plan. (b) Enrollment in the Plan (1) An eligible person, with respect to participation commencing in the initial year of the Plan, may become a Participant prior to or within a reasonable time after the Plan becomes effective by agreeing to ^2- defer compensation not yet earned. Thereafter, a new Participant may agree to defer compensation not yet earned, but such agreement must be made prior to the beginning of the month in which it is to become effective. (2) At the time of entering into an agreement hereunder to defer compensation or at the time of re-entry following a withdrawal, a Participant must agree to defer a minimum of $ ~ per month. (3) A Participant who defers compensation may net modify such agreement to change the amount deferred except with respect to compensation earned in the subsequent calendar year or except as provided in Article 9 hereof with respect to WITfiDRAWAL. (4) A Participant may at any time revoke this agreement to defer compensation by notifying the Village in wriking 15 days prior to the commencement of any pay period. (5) A Participant who has withdrawn as set forth in Article 9 ~~ or revoked as set forth in (4) above may again become a Participant in any calendar year following his withdrawal or revocation by satisfying the above conditions. 6. Relationship to Other Village Plans - The amount of deferred salary will not be considered as current salary. However, such amounts will be included in determining contributions, benefits, and rights under the Village Retirement Plan, and Social Security. Payments under the Deferred Compensation Plan will supplement Retirement and Death Benefits under the Retirement Plans of The Village. -3- 7. Benefits Under Plan (a) The Plan provides for alternative types of payment as follows: (1) Deferred Compensation payments, payable on the happening of any of the following events: (i) Retirement of a Participant (ii) Termination of a Participant. (2) peath benefits, payable when a Participant dies before Deferred Compensation payments start. (b) The Village and the employee will execute an agreement in writing, confirming their assumptions of the obligations set forth in this Plan and the amounts of Deferred Compensation payments and death benefits payable on account of salary so deferred. The factors in determining the amounts of Deferred Compensa- tion payments and death benefits are the amount of deferred salary, the participant's age at the time salary is deferred (if an annuity or some other form of insurance is chosen as the investment medium) and the Participant's age at the time of his termination, retirement or death. If an insurance or annuity form of investment is used, the Deferred Compensa- tion payments and the death benefits (if paid in other than a lump sum) may be a fixed or fluctuating amount equal to the amount which would have been payable under a variable and/or fixed annuity contract with respect to the Participant or beneficiary for which such payments are being determined, had such a contract been purchased from an approved insurance company and such Participant been included therein with an -A- annual premium equal to the annual amount of Compensation that had been deferred and had the method of payment selected been a variable and/or fixed annuity payable for 120 months certain and. life thereafter and had the annuitant thereunder been the same age as the Participant. In the event other forms of assets are acquired by the deferred amounts the basis on which deferred payments are calculated shall be the net asset value of the accounts at the time deferred compensation payments begin. It is the intent of this Plan that the Deferred Compensation payable shall not be limited to a return of contributions only but shall also include net income earned, if any. (c) (1) Subject to the provisions thereof, the Village agrees to pay Deferred Compensation payments, as follows: (i) In the event of an early, normal, postponed retirement, or disability to the Participant so qualifying, for 120 consecutive months and for his remaining lifetime thereafter, commencing the first day of the month following such retire- ment; (ii) In case of termination, to the Participant so qualifying, for 120 consecutive months, commencing the first day of the month following such termina- tion, provided, however, the Village may in its sole discretion postpone such payments until the terminated Participant reaches his 60th birthday or make payment in a lump sum. (2) Subject to the provisions hereof, the Village agrees to pay death benefits to the Participant's designated -5- beneficiary, or the Participant's estate, for. 120 consecutive months, commencing on the first day of the month following the Participant's death provided; however, in the sole discretion of the Village such payment may be in a lump sum, or installments over sofie period other than 10 years including an adjusted amount of payments for the life of the beneficiary with a refund, or guaranteed period of payments. (3) if a Participant has qualified to receive Deferred Compensation payments and such Participant dies before receipt of all 120 monthly payments, the Village agrees to continue to pay such monthly payments for the balance of the 120 month period to the Participant's designated beneficiary or the Participant's estate. (9) A Participant may designate one or more beneficiaries, and may name contingent beneficiaries to whom the benefits will be payable upon death of any designated beneficiary. The Participant will also have the right to change his designation of beneficiaries. (5) In the event that a Participant's beneficiaries dies before all monthly benefit payments become payable to such beneficiaries, then the commuted value (at rate of interest decided upon by the Village) of such monthly benefits will be paid by the V111age to the estate of the last surviving bepeficiary. (6) The Village may determine, in its sole discretion by written instructions of the Plan Administrator at least -6- 30 days prior to the Participant's retirement, in lieu of Deferred Compensation provided in (c) (1) to pay an acturial equivalent series of payments on any one of the following options: (a) A refund basis; (b) Payments for 160 consecutive months and life thereafter; or (c) Payments for his lifetime and thereafter during any remaining lifetime of designated second person. In the event such an irrevocable election is made, the benefit provided in (c) (3} will be appropriately modified to provide for payments in the case of (a) above, the refund amount in a lump sum, (b) above, for the balance of the 180 month period, and (c) above, for the balance of the designated second person. In addition, the Village may determine in its sole discretion by written instructions to the Plan Adminis- trator at least 30 days prior to the Participant's retirement in lieu of fluctuating payments, payments of a fixed amount or a combination of fixed and fluctuating payments. (7) When the Village becomes obligated to make payments as above, the necessary funds will be appropriated from time to time to the General Fund. 8. Rights of Participant - The rights of the Participant created by the Plan shall be that of a general creditor of the Village only -7- and then solely to the extent of the amount of Deferred Compensa- tion credited to the Participant's account. It is also understood that the Plan in no way abrogates the Village's or the employees' rights to terminate employment at any time, with or without cause. 9. Withdrawal - For serious financial reasons, a Participant may apply for withdrawal from the Plan prior to retirement or other termination of the Participant's employment with the Village. If such application for withdrawal is approved by the Village, the withdrawal will be effective at date of employee's request, and the Village agrees to pay the Participant the amount of money determined as if the Participant had terminated his employment, in (a) five substantially equal annual installments, (b) a lump sum, or (c) postpone such payments until the Participant terminates, dies or retires, in which event the method of payment will be as permitted by Article 7 (c) (1) or (2) as applicable, such method (a), (b), or (c) to be in the sole discretion of the Village. Following withdrawal the Participant's deferred salary will be thereupon restored. Serious financial reasons shall include the following: unexpected and unreimbursed major expenses resulting from illness to person or accident to person or property and other types of unexpected and. unreimbursed expenses of a major nature that would not normally be budgetabie. Withdrawals for foreseeable expenditures normally budgetable such as down payments on a home or purchase of an auto or college expenses will not be permitted. 10. Leave of Absence (a) If a Participant is on an approved leave of absence from the Village with salary, or on an approved leave of absence without salary for a period of not more than six months, his participation in this Plan will continue. - 8- (b) If a Participant is on an approved leave of absence without salary and such leave of absence continuos for more than si.x months, and Participant will be deemed to have with- drawn from the Plan as of the end of such six month period. The Village agrees to pay such withdrawn Participant the amount bf money determined as if the Participant had terminated his employment, said payment to be made as provided in Article 9 thereof. 11. Amendment or Termination of Plan - The Village Council may at any time terminate this Plan. Upon such termination, the Participants in the Plan will be deemed to have withdrawn from the Plan as of the date of such termination, Participant's deferred salary will be thereupon restored, and the Village in its sole discretion agrees to pay such Participants the amount of money determined as if the Participant had terminated his employment, (a) said payment to be made in five substantially equal installments, commencing on the effective date of such termination, or (b) postpone payments until the Participant terminates employment, dies, or retires, in which event the method of payment will be as permitted by Article 7. Tho Village Council may also amend the provisions of this Plan at any time. Notice of any amendment shall be given by the Village to each employee then participating in the Plan, and such Participants may elect to withdraw from the Plan within sixty. days after such notice. Upon such withdrawal, the Participants' deferred salary will be restored and the Village agrees to pay such Participants the amount of money as if the Participant had terminated his employment, said payment to be made in the sole discretion of the Village in any of the methods provided for in Article 7 hereof. -9- 12. Non-Assignability Clause - it is agreed that neither Participant, nor his beneficiary nor any other designee, shall have any right to commute, sell, assign, transfer or otherwise convey the right to receive any payments hereunder which payments and right thereto are expressly declared to be non-assignable and non-transferable; and, in the bvent of any attempted assignment or transfer, the Village shall have no further liability hereunder' nor shall any suoh payments be subject to attachment, garnishment or execution, or be transferable by operation of. law in event of bankruptcy, insolvency, or otherwise except to the extent as may be otherwise provided by law, notwithstanding the above clause. 13. Prohibition Against Funding - If the Village shall acquire a variable and/or fixed annuity contract or any other asset in connection with the liabilities assumed by it hereunder, it is expressly understood and agreed that neither the Participant nor any beneficiary of the Participant shall have any right with respect ~to, or claim against, such contract or other asset, and the Village shall be named the owner and beneficiary of any such contract or other asset. Such contract or other asset shall not be held under any trust for the benefit of Participant or his beneficiaries or held in any way as collateral security for the fulfilling of the obligations of the Village under this Agreement. It shall be, and remain, in general, unpledged, of the Village. 14. Applicable Law - This Agreement shall be construed under the law of the State of Florida. -10- IN WITNESS WHEREOF, the Village Council of North Palm Beach has caused this Agreement to be signed in its name by its duly authorized Officer, and impressed with its corporate seal, duly attested by the Clerk of the Village on the 25th day of July , 19 ~~~. VILLAGE COUNCIL OF NORTH PALM BEACH By: ~r• ~ (SEAL) VIGE h7AP ATTEST: i Village Clerk Approved as to Form and Legal Sufficiency:" / ~ Vil ge A'ttorne~~ ~- ~,. -11-