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2006-045 RESOLUTION NO. 2006-45 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA ESTABLISHING A MONEY PURCHASE RETIREMENT PLAN FOR CHARTER SCHOOL DEPARTMENT EMPLOYEES HIRED AFTER JULY 1, 2006; AUTHORIZING THE CITY MANAGER TO EXECUTE THE ATTACHED ADOPTION AGREEMENT BETWEEN THE CITY OF AVENTURA AND THE ICMA RETIREMENT CORPORATION; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE AIMS OF THIS RESOLUTION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Employer 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 employer 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 CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, THAT: Section 1. The City hereby establishes a money purchase retirement plan for Charter School Department Employees hired after July 1, 2006. Said Plan is established in the form of the ICMA Retirement Corporation Governmental Money Purchase Plan and Trust, pursuant to the specific provisions of the Adoption Agreement attached hereto. The Plan shall be maintained for the exclusive benefit of eligible employees and their beneficiaries. Section 2. The City hereby agrees to serve as trustee under the Plan and to invest funds held under the Plan in the Vantage Trust. - --H"'T-..,.____ - - T--"'--- "_-0. Resolution No. 2006-45 Page 2 Section 3. The Finance Support Services Director shall be the coordinator for the Plan; shall receive reports, notices, etc., from the ICMA Retirement Corporation or the Vantage Trust; shall cast, on behalf of the Employer, any required votes under the Vantage Trust; and may delegate any administrative duties relating to the Plan to appropriate departments. Section 4. The City Manager is hereby authorized to execute the attached Adoption Agreement. Section 5. That the City Manager is authorized to do all things necessary to carry out the aims of this Resolution. Section 6. This Resolution shall become effective immediately upon adoption. The foregoing Resolution was offered by Commissioner Joel, who moved its adoption. The motion was seconded by Vice Mayor Weinberg, and upon being put to a vote, the vote was as follows: Commissioner Zev Auerbach Commissioner Bob Diamond Commissioner Harry Holzberg Commissioner Billy Joel Commissioner Michael Stern Vice Mayor Luz Urbaez Weinberg Mayor Susan Gottlieb ves ves ves ves ves ves ves Resolution No. 2006-~ Page 3 PASSED AND ADOPTED on this 11th day of July, 2006. ~~ "SUSAN GOTTLIEB, MAYOR APPROVED AS TO LEGAL SUFFICIENCY: H1~~ ~ CITY ATTORNEY ICMA RETIREMENT CORPORATION GOVERNMENTAL MONEY PURCHASE PLAN & TRUST ADOPTION AGREEMENT PLAN NUMBER 10- The Employer hereby establishes a Money Purchase Plan and Trust to be known as City of Aventura Charter School Department Employee Pla(ihe "Plan") in the form of the ICMA RC Governmental Money Purchase Plan and Trust. 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: City of AventurH, Florida 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: July I, 2006 III Plan Year will mean: ( ) 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 July I, 2006 and each anniversary thereof. IV. Normal Retirement Age shall be age 59! (not to exceed age 65). V. ElIGIB\lI1Y REQUIREMENTS: 1. The following group or groups of Employees are eligible to participate in the Plan: All Employees All Full-Time Employees Salaried Employees Non-union Employees Management Employees Public Safety Employees General Employees x Other (specify below) Charter School Department employees hired after July 1, 2006 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. 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 N/A (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 N/A (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): ( ) Fixed Employer Contributions With Or Without Mandatory Participant Contributions. The Employer shall contribute on behalf of each Participant 7 % 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) -0- % of Earnings, (ii) $-0- , or (iii) a whole percentage of Earnings, as designated by the Employee in accordance with guidelines and procedures established by the Employer 2 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. x Yes No [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) of the Internal Revenue Code of 1986 only if they meet the requirements of Rev. Ruls. 81-35 and 81-36, 1981-1 CB. 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 _0/0 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 _0/0 of Earnings or $_. Under this option, there is a single, fixed rate of Employer contributions, but a Participant 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. ( ) 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): 3 % of the contributions made by the Participant for the Plan Year (not including Participant contributions exceeding _0/0 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 _0/0 of Earnings or $ ). Employer Contributions on behalf of a Participant for a Plan Year shall not exceed $ or _0/0 of Earnings, whichever is more or less. 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 x No 3. Employer contributions and Participant contributions shall be contributed to the Trust in accordance with the following payment schedule: Bi-weekly VII. EARNINGS Earnings, as defined under Section 2.09 of the Plan, shall include: (a) Overtime Yes x No (b) Bonuses Yes x 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 participant 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. 4 ( ) 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: _ 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 Percent Vestinq Zero One Two Three Four Five Six Seven Eight Nine Ten % 20 % 40 % 60 % 80 % 100 % % % % % % X. Loans are permitted under the Plan, as provided in Article XIII: Yes x No 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. 5 XIII. The Employer hereby appoints the ICMA RC as the Plan Administrator pursuant to the terms and conditions of the ICMA RC GOVERNMENTAL MONEY PURCHASE PLAN & TRUST. The Employer hereby agrees to the provisions of the Plan and Trust. XIV. 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 , 2006. EMPLOYER ICMA RC By: By: Title: Title: Attest: Attest: 6 \\GLGPR1M\CLJENTS\1 ] 070\01 IMPPAA4.DOC