HomeMy WebLinkAboutResolution 1979 - 0176 (AMENDED) (REPEALED) (2)RESOLUTION NO.79-176
APPROVINGREVISED DEFERRED COMPENSATION PLAN
FOR MANAGEMENT AND SUPERVISORY EMPLOYEES
A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS
OF COUNTY SANITATION DISTRICTS NOS.1,2,3,5,
6,7 AND 11 OF ORANGE COUNTY,CALIFORNIA,
APPROVING A REVISED DEFERRED COMPENSATION PLAN
FOR THE MANAGEMENT AND SUPERVISORY EMPLOYEES
OF THE DISTRICTS
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WHEREAS,the Districts have previously considered the establishment of a
Deferred Compensation Plan to be made available to certain full-time Districts’
employees,whereby the employees could provide for the deferral of a specified
amount of current earned income and the payment of such deferred amount and accum
ulations thereon,in accordance with the terms and conditions of said Plan and
agreements with participating employees;and,
WHEREAS,the Districts adopted Resolution Nos,75-98 and 75-99 on July 9,
1975,establishing the Deferred Compensation Plan for the management and super
visory employees of the Districts;and,
WHEREAS,the Districts adopted Resolution No.76-19 on January 14,1976,
to provide for an additional employment incentive for the management employees
of the Districts by providing additional deferred compensation benefits for those
employees;and,
WHEREAS,the Districts recognize that the tax advantages of a Deferred
Compensation Plan to its employees constitutes a benefit to the Districts;and,
WHEREAS,recent revisions of the United States Internal Revenue Code have
been made pursuant to the Tax Reform Act of 1978,which revisions have affected
the Deferred Compensation Plan presently in force and effect and which now
requires changes in said Plan to comply with the new Code provisions.
NOW,THEREFORE,the Boards of Directors of County Sanitation Districts Nos.
1,2,3,5,6,7 and 11 of Orange County,California,
DO HEREBY DETERMINE,RESOLVE AND ORDER:
Section 1 That Resolutions Nos.75-98,75-99 and 76-19 are hereby
repealed;and,
Section 2 That a Deferred Compensation Plan for the benefit of the
Districts’management and supervisory employees,is hereby authorized and estab
lished.A copy of said Plan is attached hereto,marked Exhibit “A”and incorporated
in this Resolution by reference,as though set forth at length;and,
Section 3 That all management and supervisory employees of the Districts,as
provided for in the then current salary resolution are authorized to participate
in said Plan;and,
Section 4 That the General Manager and Secretary of the Boards are hereby
authorized to execute individual Deferred Compensation Participation Agreements
with each eligible person requesting same,in form approved by the General Counsel;
and,
Section 5 That the Districts~General Counsel is authorized and directed to
submit the Deferred Compensation Plan,together with the Participation Agreement
and all other related documents,to the Internal Revenue Service for purposes of
seeking to obtain favorable letter ruling from the U.S.Department of Treasury;
and
Section 6 That the Districts hereby approve the cdntinuedprográm set forth
by Resolution No.76-19,wherein the Districts provided for a contribution of an
annual sum equal to 3%of the gross annual salary of the managerial employees,
provided said employees voluntarily contribute an equal sum to the Deferred
Compensation Plan.The participating management employees shall not be entitled
to withdraw any sums deposited to the individual employees’investment account
contributed by the Districts under the Plan,except upon death or retirement or
for those sums contributed by the Districts which have been on deposit for greater
than three years.
PASSED AND ADOPTED at a regular meeting held December 12,1979.
COUNTY SANITATION DISTRICTS OF
ORANGE COUNTY,CALIFORNIA
DEFERRED COMPENSATION PLAN
SECTION 1:Name The name of this Plan is the County Sanitation
Districts of Orange County,California Deferred Compensation Plan (hereinafter
referred to as the “Plan”).
SECTION 2:Purpose The primary purpose of the Plan is to attract and
retain District personnel by permitting them to enter into agreements with the
County Sanitation Districts of Orange County,California,which will provide
future payments in lieu of current income upon death,disability,retirement,or
other termination of employment with the County Sanitation Districts of Orange
County,California.
SECTION 3:Definitions For the purposes of this Plan,certain words or
phrases used herein will have the following meanings:
3.1 “Employer”shall mean the County Sanitation Districts of
Orange County,California.
3.2 “Employee”shall mean any permanent,full time management
or supervisory employee of the County Sanitation Districts of
Orange County,California.
3.3 “Participant”shall mean an Employee who has elected to
participate in the Plan.
3.4 “Participation Agreement”shall mean the agreement executed
and filed by an Employee with the employer pursuant to Section
4,in which the Employee elects to become a participant in the
Plan and defers a portion of his/her income.
3.5 “Compensation”shall mean the full,regular,basic salary which
would be paid by the employer to or for the benefit of an
Employee (if he were not a Participant in the Plan)for actual
services for the period that he is a Participant.
3.6 “Deferred Compensation”shall mean the amount of compen
sation not yet earned,which the Participant and the County
Sanitation Districts of Orange County,California mutually
agree shall be deferred in accordance with the provisions of this
Plan.
3.7 “Includable Compensation”shall mean compensation for ser
vices performed for Employer which is currently includable in
gross income,but less any amounts deferred pursuant to a plan
described in Internal Revenue Code Section 457 (including but
not limited to this Plan)or Internal Revenue Code Section
403(b).
3.8 “Disability”means the inability of a Participant to engage in his
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usual occupation by reason of a medically determinable physical
or mental impairment as determined by the employer on the
basis of advice from a physician or physicians.
3.9 “Ordinary Retirement”shall mean a retirement from service
with the County Sanitation Districts of Orange County,Cali
fornia which becomes effective on the first day of the calendar
month after the Participant meets the age and service require
ments for normal retirement specified in the Retirement Plan
for the Employees of the County Sanitation Districts of Orange
County,California ,
which is pursuant to contract with the
County of Orange Employees’Retirement System.
3.10 “Early Retirement”shall mean a retirement from service with
the County Sanitation Districts of Orange County,California
which becomes effective on the first day of the calendar month
alter the Participant meets the age requirements for early
retirement specified in the Retirement Plan for the Employees
of the County Sanitation Districts of Orange County,Calif or
nia.
3.11 “Late Retirement”shall mean a retirement from service with
the County Sanitation Districts of Orange County,California
which becomes effective after the Participant has exceeded the
normal retirement age as specified in the Retirement Plan for
the Employees of the County Sanitation Districts of Orange
County,California.
3.12 “Termination of Services”shall mean the severance of the
Participant’s employment with the County Sanitation Districts
of Orange County,California prior to retirement.
3.13 “Plan”shall mean the County Sanitation Districts of Orange
County,California Deferred Compensation Plan.
3.14 “Unforeseeable Emergency”shall mean an emergency pre
scribed by the Secretary of the Treasury by regulations adopted
pursuant to Section 457 of the Internal Revenue Code.
SECTION 4:Participation in the Plan
4.1 Any Employee designated by the Employer to be eligible,may
elect to become a Participant in the Plan by executing and
filing a Participation Agreement with the Employer.An
election to participate in the Plan s~all become effective with
respect to Compensation earned by the Participant~during the
calendar month next following the date of the Partcipant’s
election.Such election shall continue thereafter in full force
and effect unless revoked by the Participant.
4.2 Each Participation Agreement shall specify the amount by
dollar amount or by percentage of gross compensation,which is
to be deferred pursuant to the Plan,and to be withheld out of
the Compensation otherwise payable to the Participant for each
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bi-weekly payroll period.The amount deferred each year may
not exceed the lesser of Seventy-Five Hundred ($7,500.00)
Dollars or Thirty-Three and One-Third (33-1/3%)Percent of
Participant’s Includable Compensation,or be less than Three
Hundred ($300.00)Dollars each year.
4.3 Notwithstanding the provisions of Section 4.2 herein,during any
or all of the last three (3)tax years ending before a Partici
pant’s Normal Retirement,the maximum amount deferred an
nually shall be the lesser of Fifteen Thousand ($15,000.00)
Dollars or the sum of the maximum amount which can be
deferred pursuant to Section 4.2,plus the difference between
the amount which could have been deferred in prior years,and
the amount actually deferred pursuant to the Plan.
4.4 A Participant may revoke his election to participate in the
Plan,and thereby terminate further deferral of his Compen
sation,by executing and filing with the Employer a Notice of
Revocation at least thirty (30)days prior to the effective date
of revocation.In the event a Participant ceases to qualify
under Section 3 hereof,as a Participant,his election to defer
income shall automatically terminate on the same date as he
becomes ineligible.A former Participant may not rejoin the
Plan during the calendar month in which revocation ocurred;
however,he may elect to become a Participant for subsequent
calendar months after a lapse of not less than three (3)months.
No amounts shall be payable tO an Employee upon revocation of
his participation in the Plan unless otherwise provided for in
Section 10.
4.5 A Participant may change the amount of Compensation to be
deferred in a subsequent calendar month by executing and filing
notice with the Employer at least thirty (30)days prior to the
beginning of such month;provided,however,that such change
may be made not more than four (4)times in a calendar year.
SECTION 5:Deferral of Compensation During the period of participa
tion,the Employer shall not pay the Participant his full compensation,but shall
defer payment of such part of his compensation as is specified by the Participant
in the Participation Agreement,which has been executed and filed with the
Employer.Neither the existence of the Plan nor any funds derived therefrom,
shall be deemed to create a trust,and the Employer shall at all times be the
legal and beneficial owner of all funds and assets of the Plan.
SECTION 6:Administration of the Plan
6.1 The County Sanitation Districts of Orange County,California
shall have full authority and power to adopt the rules and
regulations for the administration of the Plan,and to interpret,
amend,alter and revoke any rules and regulations so adopted.
6.2 The Employer shall establish a Deferred Compensation Invest
ment Fund to which all Deferred Compensation will be credited
at.such times as the Compensation would have been payable to
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the individual employees if not a Participant of the Plan.
6.3 The Employer shall maintain a book account (“the Investment
Account”)for each Participant,to which he shall credit the
deferred income of the Participant.The Participant’s Invest
ment Account shall be credited with earnings thereof,if any,
and shall be credited or debited,as the case may be,with the
net amount of any gains or losses which may result from the
investment of all or any portion of the amount in his Investment
Account.The District,its officers or employees,shall not be
liable for any losses on any investment credited to any Invest
ment Account.The debiting and crediting of earnings,gains,or
losses shall be made on the last day of each quarter for the
balance in the Investment Account which has been in said
account during the quarter immediately prior to such date.
SECTION 7:Investments The funds and assets of this Deferred
Compensation Plan shall be invested and reinvested in a manner intended to
increase said resources,and the net interest,accumulation and increments
thereon shall be credited and held in the Plan for the benefit of Participants,
provided that such assets remain the unrestricted assets of the County Sanitation
Districts of Orange County,California as set forth in Section 8 below.The
County Sanitation Districts of Orange County,California shall not be responsible
for any loss due to the investment or failure of investment of funds and assets of
the Plan,nor shall the County Sanitation Districts of Orange County,California
be required to replace any loss whatsoever which may result from said
investments.
SECTION 8:Assets of County Sanitation Districts of Orange County,
California All funds and assets,together with interest,accumulations and
increments thereon of the Deferred Compensation Investment Fund shall remain
an asset of the County Sanitation Districts of Orange County,California and
shall be subject to County Sanitation Districts of Orange County,California
ownership until such time as the funds or assets of said Fund are distributed to
the Participant.The obligation of the County Sanitation Districts of Orange
County,California to the Participant for payment of the Deferred Compensation
and increments thereon referred to in this Plan is a contractural obligation only,
and Participant shall have no preferred or specific interest by way of trust,
escrow,annuity or otherwise in and to the specific assets or funds of the Plan.
SECTION 9:Plan Benefits The Plan provides for alternative types of
payments as follows:
Deferred Compensation payments,payable on the happening of any of the
following events:
Normal Retirement of a Participant;
Late Retirement of a Participant;
Early Retirement of a Participant;
Termination of Service of a Participant;
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Death of a Participant who dies before Deferred Compensation
payments commence.
SECTION 10:Distribution of Benefits
10.1 Termination of Employment by Retirement Upon the termina
tion of the employment of a Participant and the submission by
the Participant of an application for retirement benefits to the
County of Orange Employees’Retirement System,the Employer
shall pay to the Participant one of the following benefits
selected by the Participant:
10.1(a)Consecutive equal monthly payments over a period
of 36 months to 180 months,as determined by
Participant.
10.1(b)Consecutive monthly payments for the life of the
Participant or for the lives of the Participant and
his spouse and the last survivor of them.
10.1(c)A combination of the monthly benefits described in
(a)and (b)above.
10.1(d)A single payment equal to the balance of the
Participant’s Investment Account.
Such payment shall be made or the first of such payments shall
be made within ninety (90)days after the date such retirement
becomes effective,or such later date selected,at the Partici
pant’s option.
The sum of any benefits or combination of benefits specified in
subparagraphs (a)to (d)above shall not exceed the sum of the
amounts deferred by the Participant plus any earnings or losses
on such deferred amounts.
Should the Participant fail to select one of the benefits
hereunder within sixty (60)days of retirement,the Employer
may,at its option,pay the sum in the Participant’s Investment
Account pursuant to subparagraph (d)above,within one hundred
twenty (120)days after the date such retirement becomes
effective.
10.2 Termination of Employment Prior to Retirement Upon the
termination of employment of a Participant who has not retired
within the meaning of Section 10.1 of this Plan,other than by
reason of his death,the Employer shall pay to the Participant
the benefit selected by the Participant as provided in Section
10.1,except that the Participant may elect to defer compensa
tion as follows,in which instance the Employer shall withhold
the payment of benefits:
10.2(a)until the Participant attains an age (“equivalent age”)
equal to .the age at which he would have first been
5
eligible to apply for retirement benefits from the
County of Orange Employees’Retirement System had
he continued his employment with the District;or
10.2(b)until the fifth anniversary of the Participant’s ter
mination of employment;or
10.2(c)until retirement where the Participant elects de
ferred retirement status,
unless the Participant sooner dies or becomes totally disabled.
If the Participant selects distribution upon attaining the “equi
valent age”,as defined above,and has already attained the
“equivalent age”,the Employer shall pay the benefit selected in
accordance with Section 10.1.If the Participant has not
attained the “equivalent age”as defined above,then the Em
ployer shall pay benefits to such Participant or to his Bene
ficiary,as the case may be,in accordance with the applicable
provisions of this Plan,upon attainment by the Participant of
the “equivalent age”or upon the Participant’s death or total
disability,whichever occurs first.
10.3 Death Before Termination of Services In the event of the
death of the Participant while he is an employee of the
District,the Employer shall pay to the Participant’s Beneficiary
one of the following benefits selected by the Participant or
Beneficiary:
10.3(a)Consecutive equal monthly payments over a period of
36 months to 1~O months as determined by Parti
cipant.
10.3(b)Consecutive monthly payments for the life of the
Participant’s Beneficiary.
10.3(c)A combination of the monthly benefits described in
(a)and (b)above.
10.3(d)A single payment equal to the balance of the Partici
pant’s Investment Account.
Such payment shall be made or the first of such payment shall
be made at the option of the Participant within sixty (60)days
after the date of Participant’s death.
The sum of any benefits or combination of benefits specified in
subparagraphs (a)to (d)above,shall not exceed the sum of the
amounts deferred by the Participant plus any earnings or losses
on such deferred amounts.
Should the Participant fail to select one of the benefits
hereunder,the Employer may,at its option,pay the sum in the
Participant’s Investment Account pursuant to subparagraph (d)
within one hundred twenty (120)days after the date of Partici
6
pant’s death.
Payment hereunder or the first of such payments may be
extended by the number of days between the date of Partici
pant’s death and the date of receipt of written notice thereof
by the Employer.
10.4 Death Following Termination of Services In the event of the
death of the Participant following the termination of his
services with the District,the Employer shall pay the balance,
if any,in the Participant’s Investment Account in one of the
ways specified in Section 10.3 above,unless payment of
monthly benefits has commenced under Sections 10.1 or 10.2
above,in which event such monthly payments shall be continued
in accordance with the provisions of the applicable Section.
10.5 Disability In the event of the total disability of a Participant,
the Employer shall pay to the Participant one of the benefits
payable to a retired Participant as selected by the Participant
as provided in Section 10.1 above.For the purposes of this
Section,a Participant shall be considered to be totally disabled
if he is unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental im-.
pairment which can be expected to result in death or to be of
long continued and indefinite duration.The employer may
require the Participant to furnish a written statement of a duly
licensed physician as an aid to the Employer in establishing that
the Participant is totally disabled,but any determination of a
Participant’s total disability shall be at the discretion of the
Employer.
SECTION 11:Emergency Withdrawals In the event of an Unforeseeable
Emergency,to be determined by the Employer in his sole discretion,the
Employer may pay to the Participant all or any portion of the amount in such
Participant’s account,as of the month end following the date when such
determination is made.The amount that will be paid out will be limited to the
amount necessary to alleviate the Unforeseeable Emergency and shall be paid
only in a lump sum.
Any distribution under this Section shall be deemed a revocation under
Section 4.4 above,and no further deferral of Compensation will be made unless
Participant subsequently re..elects to participate as provided in Section 4.4.
SECTION 12:Employer Participation Notwithstanding any other pro
vision of this Plan,the Employer may make additional deposits in the Deferred
Compensation Fund as additional compensation for the services rendered by the
Employee to the Employer during the period of participation.
SECTION 13:Non-Assignability Clause It is agreed that neither the
Participant nor his beneficiary,nor any other designees,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-transferrable;and in the event of any attempted
assignment or transfer,the County Sanitation Districts of Orange County,
7
California shall have no further liability hereunder,nor shall any payments be
subject to attachment,garnishment or execution,or be transferable by operation
of Jaw in the event of bankruptcy,insolvency,except to the extent otherwise
provided by law,notwithstanding the above clause.
SECTION l1~:Amendment or Termination of Plan The County Sanitation
Districts of Orange County,California may,at any time,terminate this Plan for
all Participants.Upon such termination,the Participants in the Plan will be
deemed to have withdrawn from the Plan as of the date of such termination;the
Participants’full Compensation on a non-deferred basis will be thereupon
restored;and the County Sanitation Districts of Orange County,California
agrees to pay such Participants the amount of money determined as if the
Participant had terminated his employment,said payment to be made in
accordance with the provisions of Section 10.2.
The County Sanitation Districts of Orange County,California may also
amend the provisions of this Plan at any time;provided,however,that no
amendment shall affect the rights of the Participants or their beneficiaries to
the receipt of payment of benefits,to the extent of any Compensation deferred
at the time of the amendment as adjusted for investment experience hereunder,
prior to and subsequent to the amendment.
The Employer hereby establishes the County Sanitation Districts of Orange
County,California Deferred Compensation Plan on the terms and conditions set
forth in this Deferred Compensation Plan.
TLW/ARW :pj
12/03/79
DCP-CSD D:3
S
STATE OF CALIFORNIA )
)SS..
COUNTY OF ORANGE )
I,J.WAYNE SYLVESTER,Secretary of the Boards of Directors of
County Sanitation Districts Nos.1,2,3,5,6,7,and 11 of Orange
County,California,do hereby certify that the above and foregoing
Resolution No.79-176 was regularly passed and adopted at a
Marvin Adler,Philip Anthony,Ruth Bailey,Norman Culver,
Bruce Finlayson,Donald Fox,Henry Frese,Francis Glockner,
Beth Graham,Donald Flolt,Jr.,Bernard Houston,Elvin
Hutch.ison,Melvin Leliaron,Don MacAllister,Don Mclnnis,
Edison Miller,Ron Pattinson,Bob Perry,Lester Reese,
Thomas Riley,Earl Roget,Donald Roth,Howard Rowan,Paul
Ryckoff,Harold Kent Seitz,James Sharp,Don Smith,Roger
Stanton,Donald Strauss,Charles Sylvia,Bill Vardoulis,
HenryS Wedaa,Martha Weishaupt,Ralph Welsh,Jr.,Harriett
Wieder,.Ray Williams,Duane Winters and Harry Yamamoto
IN WITh~ESS WHEREOF,I have hereunto set my hand this
of December ,1979
12th day
regular meeting of said Boards on the 12th day of December
,
19 79
by the following vote,to wit:
AYES:
NOES:None
ABSENT:None
ter,secretary,
ctors,County
stricts Nos.1,2,
7,and 11 of Orange
County,California
S.-lol