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HomeMy WebLinkAboutD-873 Deferred CompensationAN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA, AMENDING CHAPTER 2, ARTICLE 1, SECTION 2-56 OF THE CARMEL CITY CODE WHEREAS, the Common Council of the City of Carmel, Indiana, upon study of the deferred compensation plan currently in existence, desires to repeal the existing deferred compensation Ordinance in-its entirety in Chapter 2, Article 1, Section 2-56 of the Carmel City Code, and replace said Ordinance with the following comprehensive deferred compensation plan ordinance. NOW THEREFORE IT BE ORDAINED BY THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA, AS FOLLOWS: Section 2-56 of the Carmel City Code is hereby repealed in its entirety and replaced with the ' following: SECTION 1. 2-56. The City of Carmel Deferred Compensation Plan for all eligible City employees is hereby established. (A) Definitions. For purposes of this Section the following words shall have the mea~nings herein stated: (1) "deferred compensation" shall mean the amount of compensation reduced and deferred pursuant to a deferred compensation agreement. (2) "deferred compensation plan" shall mean any plan established p~rsuant to Section 2-56 or any plan established under an ordinance which preceded revised Section 2-56. (3) "deferred compensation account" shall mean the account established for each employee who has entered into a deferred compensation agreement and into which the compensation he/she has deferred shall be credited. (4) "deferred compensation agreement" shall mean that agreement, the general terms of which are set forth in Section 2-56{D),, entered into between the employer and an eligible employee as defined by Section 2-56(C). (5) "employee" shall mean any person actively employed (including elected or appointed officials) by the City of Carmel, Indiana. (6) "employer" shall mean the City of Carmel, Indiana. (B) Deferred Compensation Plan Authorized. Subject to Common Council approval of each plan, the employer is hereby authorized to establish and administer one or more deferred compensation plans for eligible employees as provided in this Section or pursuant to IND. CODE §5-10-1.1-7. Such deferred compensation plans may be amended from time to time after proposed amendments are submitted and approved by the Council. Any amendment to an existing plan or the adoption of a new plan shall not invalidate any employee's previous deferral of compensation and any income attributable to the amounts deferred. (C) EmpIovee Eli.qibility. Any permanent full-time or permanent part-time employee will be eligible to participate in the deferred compensation plan provided the employee has entered into a properly executed deferred compensation agreement. (D) Required Terms of Aqreement. The deferred compensation agreement specified in Section 2-56(A)(4) shall be executed by the eligible employee and by the employer or by any party authorized to execute such agreements on behalf of the employer and shall contain the following provisions: (1) The eligible employee shall agree that the salary or other total compensation, authorized by statute, Ordinance or the responsible salary administrator or the position held by such employee, shall be reduced by at least $25 per month and the amount shall be credited to the employee's deferred compensation account. (2) The employer and eligible employee shall mutually agree that the amount of deferred compensation shall be paid as set forth in the deferred compensation plan. (3) The eligible employee shall agree that the deferred compensation account shall be the absolute property of the employer, and the employee shall have no rights to that account except as set forth in the deferred compensation plan. (4) The eligible employee shall agree that he/she will; (a) (b) (c) (d) change his/her election to participate, amend the amount of compensation to be deferred, change his/her specification for investment selection, or change the payment option selected for the payment of benefits, only as provided for in the deferred compensation plan. (5) The employer shall agree that the eligible employee may, subject to the terms of the deferred compensation plan, designate a beneficiary who, in the event of the death of such employee, shall be paid the full value of the employees deferred compensation account. ' (6) The City of Carmel shall make a non-elective contribution to the deferred *.~compensation plan on behalf of all eligible Carmel Police Department sworn officers whereby the City will '~'remit to the deferred compensation plan'the lesser of'(1) an amount equal to the amount which the City would remit~to the Internal Revenue' Service for social security tax (not including any applicable medicare portion of the FICA withholdings if that portion must still must be remitted to the IRS), representing the employer portion of such tax, if the employees were subject to such tax and (2) the annual limit on such contributions as provided in Section 457 of the Internal Revenue Code of 1986, as amended. Any such non-elective contribution made by the City under this subsection shall be known as a "Police Retirement Benefit Program" contribution and shall be invested only in the approved investment options which are included in the deferred compensation plan. Neither the existence of a deferred compensation agreement nor any of its provisions shall be construed to confer upon the employee any right to continue his/her employment for any specific period or at any particular rate of compensation. Any deferred compensation specified in such agreement shall accrue and be payable only as set forth in the deferred compensation plan. (E) Manaqement of Deferred Compensation Accounts. All deferred compensation accounts established pursuant to this Section shall be invested pursuant to the terms of the deferred compensation plan and may be invested in either group fixed or group variable annuity contracts. (F) Administration. Each deferred compensation plan shall be administered as provided for in the deferred compensation plan document for that plan and any amendments thereto. Such documents may allow the employer, or his/her authorized representative, to enter into an agreement with, or to contract with, one or more third parties to provide administrative services for each deferred compensation plan. (G) Plan Approval. The Common Council appr(~ves the following plans for the City of Carmel Deferred Compensation Plan, submitted contemporaneously herewith, and attached to this Ordinance. United States Conference of Mayors Deferred CompensatiOn Plan Deferred Compensation Plan for Public Employees - Civilian (Exhibit "A") dated March 19, 1990 Deferred Compensation Plan for Public Employees - Police Department (Exhibit "B") dated Lincoln National Deferred Compensation Plan of the City of Carmel (Exhibit "C") dated May 15, 1988 SECTION 2. All prior Ordinances, resolutions or parts thereof inconsistent with any provision of this Ordinance are hereby repealed. SECTION 3. This Ordinance shall be in full force and effect from and after its passage and signing by the Mayor. PASSED BY THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA THIS ~/~"~-DAY - ,,,, Presid~er ATTESx'~: .-~ ~.~- /Susan W..Jones-,~Ole~/'r/.;~_~surer Dated: ¢ day of ~(~, 1992- / ~,~ERESENTE.D IJy me to the Mayor of the City of Carmel, Indiana on the day of By: ~/l'ed Johns n~"~ Mayor, ~,,~of C~el, Indiana A~EST: /~san W. Jones, Clerk~easurer