HomeMy WebLinkAboutResolution No. 2016-C17RESOLUTION NO. 2016-C17
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA FOR
THE ACCUMULATION PROGRAM FOR PART-TIME AND LIMITED -
SERVICE EMPLOYEES OF THE CITY OF AZUSA (APPLE PLAN)
WHEREAS, California Government Code section 53216, et seq., authorizes a governmental
employer to establish and fund a pension Plan covering its employees on a compulsory basis; and
WHEREAS, Section 11332 of the Omnibus Budget Reconciliation ACT of 1990 ("OBRA
`90") extends Social Security retirement benefit coverage to employees of state and local
governments who are not covered by a state or local retirement system and subjects the employer and
employee to Federal Insurance Contributions Act ("FICA") taxes on the employee's wages; and
WHEREAS, OBRA '90 excludes from the requirement of Social Security coverage
governmental employees who are covered by a compulsory retirement system of a state or local
government; and
WHEREAS, the City of Azusa (the "Employer") currently provides a FICA alternative plan
to part-time and temporary employees of the Employer through Public Agency Retirement Services
(PARS) Plan and Trust; and
WHEREAS, the Employer desires to continue in providing a tax -qualified FICA alternative
plan for said employees, but to replace the existing PARS Plan and Trust with the Accumulation
Program for Part -Time and Limited -Service Employees of the City of Azusa ("APPLE Plan"); and
WHEREAS, the Council has reviewed and elected to adopt the Accumulation Program for
Part -Time and Limited -Service Employees (APPLE) to cover the Employer's part-time and
temporary employees;
NOW, THEREFORE, BE IT RESOLVED, that pursuant to the Employer's authority
under the existing PARS Plan to amend the plan, the Council does hereby adopt the Accumulation
Program for Part -Time and Limited -Service Employees of the City of Azusa as an amendment to the
existing PARS Plan, replacing the PARS Plan in full, effective March 1, 2016.
FURTHER RESOLVED, that the Council hereby designates the Employer as the Plan
Administrator of the APPLE Plan.
FURTHER RESOLVED, that the City hereby terminates the Employers participation in the
PARS Trust and removes US Bank the Trustee of the Plan.
FURTHER RESOLVED, that Keenan & Associates will act as Broker for American United
Life Insurance Company's 3121 Alternative to Social Security program, and provide consultant and
broker services for the APPLE Plan as outlined in the Keenan & Associates Service Agreement.
FURTHER RESOLVED, that the Council appoints the City of Azusa as Trustee of the
APPLE Plan.
FURTHER RESOLVED, that the Council hereby removes Public Agency Retirement
Services (PARS) as Trust Administrator and appoints MidAmerica as Third Party Administrator of
the APPLE Plan.
FURTHER RESOLVED, that the Council directs the transfer of the plan assets held by U.S.
Bank under the Public Agency Retirement Services (PARS) Plan and Trust to AUL, as custodian for
the successor Trustee, the City of Azusa for the benefit of the City of Azusa APPLE Plan, to occur
within 30 days after March 1, 2016, or a date mutually agreed upon by PARS and the City of Azusa.
This will facilitate the ability of MidAmerica to process Plan distributions with minimal delays to
Plan Participants.
FURTHER RESOLVED, that the Council directs the transfer of plan participant's account
information from Public Agency Retirement Services (PARS) to MidAmerica, to occur within 30
days after March 1, 2016 or a date mutually agreed upon by PARS and the City of Azusa in order for
MidAmerica to process Plan distribution with minimal delays.
FURTHER RESOLVED, that the Council authorizes MidAmerica and/or Keenan &
Associates to execute, on behalf of the Employer, the APPLE Plan and any other documents
necessary to carry out the provisions of the APPLE Plan; to contract with Keenan & Associates to
provide ongoing administrative consulting services in connection with the operation of the APPLE
Plan; to arrange funding of the Plan through American United Life (AUL).
FURTHER RESOLVED:
SECTION 1. That, pursuant to Code section 414(h) (2), the Employer will continue to "pick
up" employee contributions to the APPLE Plan on behalf of Plan participants. "Employee
contributions" shall mean those contributions to the APPLE Plan, which are deducted from the salary
of employees and are credited to individual employees' accounts.
SECTION 2. That the contributions made by the Employer to the APPLE Plan, although
designated as employee contributions, will be paid by the Employer in lieu of contributions by the
employees who are participants in the APPLE Plan.
SECTION 3. That employees shall not have the option of choosing to receive the
contributed amounts directly instead of having them paid by the Employer to the APPLE Plan.
SECTION 4. That the Employer shall pay to the APPLE Plan the contributions designated
as employee contributions from the same source of funds as used in paying salary.
SECTION 5. That the amount of the contributions designated as employee contributions
and paid by the Employer to the APPLE Plan on behalf of an employee shall be the entire
contributions required of the employee under the Plan.
FURTHER RESOLVED, that the City's City Manager is hereby authorized, empowered
and directed, in the name and on behalf of the Employer, to execute such documents and instruments
and to take all such other and further actions as may be necessary or appropriate to carry out the
purpose and the intent of the foregoing resolution.
PASSED, APPROVED and ADOPTED this I" day of February, 2016.
JoJoseph
Romero Rocha
Mayor
ATTEST:
i f. its o Jr..
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )ss.
CITY OF AZUSA )
I HEREBY CERITFY that the foregoing Resolution No. 2016-C 17 was duly adopted by the
City Council of the City of Azusa at a regular meeting thereof, held on the I" day of February,
2016, by the following vote of Council:
AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
APPROVED AS TO FORM:
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Best Be & Krieger, LP
City Aitt mey
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