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HomeMy WebLinkAbout88-41 - Amending Retirement Plan for Safety Employees} RESOLUTION NO. 88-41 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING THE RETIREMENT PLAN FOR SAFETY EMPLOYEES OF THE CITY OF COSTA MESA. THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE, DETER- MINE, AND ORDER AS FOLLOWS: WHEREAS, the Retirement Plan for Safety Employees of the City of Costa Mesa, established as of July 1, 1962, mended and restated effective Janu- ary 1, 1984, is hereby amended as follows: Section 8.6 is hereby added (Exhibit A attached) and Section 8.6 is hereby renumbered as Section 8.7. NOW, THEREFORE, BE IT RESOLVED that the effective date of this amend- ment shall be July 1, 1988. BE IT FURTHER RESOLVED that nothing contained in this amendment to the restated Retirement Plan shall be held to alter or affect any of the pro- visions of this Plan other than as herein specifically provided. PASSED AND ADOPTED this 20th day of June, Mayor of the City of Costa Mesa ATTEST: City Clerk of the City of Costa Mer STATE OF CALIFORNIA) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, EILEEN P. PHINNEY, City Clerk and ex -officio Clerk of the City Council of the City of Costa Mesa, hereby certify that the above and fore- going Resolution No. 88-41 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof, held on the 20th day of June, 1988. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the City of Costa Mesa this 21st day of June, 1988. C ty Clerk and ex -officio Clerk of tpf City Council of the City of Costa Mjya EXHIBIT A Resolution No. 88-41 AMENDMENT TO THE RETIREMENT PLAN FOR SAFETY EMPLOYEES OF THE CITY OF COSTA MESA The "Retirement Plan for Safety Employees of the City of Costa Mesa", which became effective July 1, 1962, and which was amended and restated in its entirety, effective January 1, 1984, is hereby amended, effective July 1, 1988, as follows: (1) By renumbering Section 8.6 as Section 8.7 and by adding a new Section 8.6, to read as follows: 8.6 Retroactive Participant's Contributions At any time on or after July 1, 1988, an employee who did not partici- pate in the Plan during any period or periods of his employment shall be permitted to deposit the contributions he would have made during such period(s) together with interest at the rate of five percent (5%) per year, canpounded annually frau the end of the Plan Year in which such contribu- tions originally would have been made to the date the contributions were made. The total amount of retroactive Participant contributions for such period(s) may be repaid either: (1) in a lum sum; or (2) by payroll deduction at an additional rate of interest of five percent (5%) on any unpaid balance canpounded monthly, plus $4.00 for each pay period during which any unpaid balance remains outstanding. In addition to the fore- going, each Participant who elects to repay contributions to the Plan pur- suant to this Section 8.6 shall pay a one time fee of $100 in a lump sum to the Plan's actuary for purposes of calculating the amount to be repaid to the Plan for retroactive Participant contributions. The full amount of such repayment, whether in a lump sum or by payroll deduction, must be made to the Plan no later than the earliest to occur of the following: (1) if in a lump sum, prior to (a) the Participant's attainment of age 60, or (b) the payment of the first monthly benefit amount fran the Plan to the Participant; or (2) if by payroll deduction, on or before (a) eight (8) years frau the date of the Participant's initial repayment to the Plan, or (b) the payment of the first monthly benefit amount frau -the Plan to the Participant; provided, however, that there shall be no prepayment penalty. The full payment of retroactive Participant contributions, which must include payment for all periods of previous employment together with the specified interest, shall result in restoration of the Participant's Past Service Credit or Future Service Credit for the corresponding period. If the Participant shall die or beccne disabled prior to canpleting repayment, the period of service used to calculate the Participant's montly benefit shall include only the amount of service purchased by the Participant up to the date of death or disability, as determined by the Retirement CaM ittee. If a Participant shall terminate employment prior to completing repayment, any Past Service Credit or Future Service Credit purchased shall be for- feited and the amount of payments made prior to the date of termination shall be refunded unless the Participant elects to pay the remaining amount of retroactive Participant contributions in a lump sum within 30 days of his date of termination.