R-1011-00 RESOLUTION NO. 1011-2000
A RESOLUTION OF THE MIAMI SHORES VILLAGE
COUNCIL ADOPTING IRS SECTION 401 (a) MONEY
PURCHASE RETIREMENT PLAN AND TRUST;
APPOINTING THE VILLAGE AS TRUSTEE UNDER
THE PLAN; APPOINTING THE VILLAGE MANAGER
AND HIS DESIGNEE AS COORDINATORS FOR THE PLAN;
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Miami Shores Village has employees rendering valuable service;
and,
WHEREAS,the establishment of a money purchase retirement plan benefits
employees by providing for retirement and funds for their beneficiaries in the event of
death; and,
WHEREAS,Miami Shores Village desires that its 401(a)money purchase
retirement plan be administered by the ICMA Retirement Corporation and that the funds
held under such plan be invested in the ICMA Retirement Trust, a trust established by
public employers for the collective investment of funds held under their retirement and
deferred compensation plans; and,
WHEREAS,the Village will not incur any costs to implement and manage the
plan.
NOW,THEREFORE,BE IT DULY RESOLVED BY THE MIAMI
SHORES VILLAGE COUNCIL,that:
Section 1. The Village Council hereby directs the Village Manager and his
designee to establish a Section 401(a)Money Purchase Retirement Plan (the "Plan") with
ICMA-RC, in the form of the ICMA Retirement Corporation Prototype Money Purchase
Plan and Trust pursuant to the specific provisions of the IRS Code 401(a) and ICMA-RC
Adoption Agreement,both attached as Exhibit A, which will not add any costs to the
Village.
0
Section 2. The Village Council hereby direct the Village Manager or his
designee to execute the Declaration of Trust with ICMA Retirement Trust, attached as
Exhibit B.
Section 3. The Village Council authorizes and directs the Village Manager
and his designee to be the plan coordinators under the provisions set forth in the ICMA-
RC Plan Documents, receiving necessary reports and notice from the Corporation or the
Trust, casting any required votes for the Village under the Trust; and authorizing the
Village Manager or his designee to execute all necessary agreements with the ICMA
Retirement Corporation incidental to the administration of the Plan, subsequent to the
review and approval by the Village Attorney.
Section 4. This resolution shall be effective immediately upon adoption.
PASSED and ADOPTED this 21St day of March, 2000.
.-�y`�
Mark S. Ulmer, Mayor
Attest: Approved as to Form:
Barbara A. Fu azzi, MC Richard Sarafan,4q.
Village Clerk Village Attorney
EXHIBIT A
ICMA RETIREMENT CORPORATION
GOVERNMENTAL MONEY PURCHASE PLAN &TRUST
ADOPTION AGREEMENT
The Employer hereby establishes a Money Purchase Plan and Trust to be known as
Miami Shores Village 401(a) Money Purchase Plan
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: Miami Shores Village
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:
III. Plan Year will mean:
( ) The twelve (12)consecutive month period which coincides with the
limitation year. (See Section 5.04(1) of the Plan.)
( ) The twelve (12) consecutive month period commencing on
and each anniversary thereof.
IV. Normal Retirement Age shall be age 55 (not to exceed age 65).
V. ELIGIBILITY REQUIREMENTS:
1. The following group or groups of Employees are eligible to participate in the
Plan:
All Employees
MPP Adoption Agreement 0325/98 I
All Full-Time Employees
Salaried Employees
Non-union Employees
Management Employees
Public Safety Employees
General Employees
X Other(specify below)
Department Heads (Executives)
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 NSA (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
_0 % of Earnings or$ 0 for the Plan Year(subject to the
limitations of Article V of the Plan). Each Participant is
required to contribute 0 % of Earnings
or$ 0 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.
MPP Adoption Agreement 03/25/98 2
Yes X No
[Note to Employer: A determination letter issued to an
adopting Employer is not 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.Rul.
81-35, 1981-1 C.B. 255. Those requirements are (1)that the
Employer must specify that the contributions, although des-
ignated as employee contributions, are being paid by the
Employer in lieu of contributions by the employee; and(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.]
() Fixed Employer Match of Participant Contributions.
The Employer shall contribute on behalf of each Participant
_010 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 % 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):
% of the contributions made by the Participant for the
Plan Year(not including Participant contributions exceeding
%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 % of Earnings or$�.
MPP Adoption Agreement 03/25/98 3
Employer Contributions on behalf of a Participant for a Plan
Year shall not exceed$ or %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:
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 and
5.03 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.
() 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.)
MPP Adoption Agreement 03/25/98 4
2. If the Participant is or has ever been a participant in a defined benefit plan
maintained by the Employer, and if the limitation in Section 5.03 of the Plan
would be exceeded,then the Participant's Projected Annual Benefit under the
defined benefit plan shall be reduced in accordance with the terms thereof to
the extent necessary to satisfy such limitation. If such plan does not provide
for such reduction, or if the limitation is still exceeded after the reduction,
annual additions shall be reduced to the extent necessary in the manner
described in Sections 5.02 and 5.02. The methods of avoiding the limitation
described in this paragraph will not apply if the Employer indicates another
method below.
() Other Method. (Note to Employer: Provide below language
which will satisfy the 1.0 limitation of section 415(e) of the
Code. Such language must preclude Employer discretion. See
section 1.415-1 of the Regulations for guidance.)
3. 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 Percent
Completed Vesting_
Zero 100
One 100 %
Two 100 %
Three 100 %
Four 100 %
Five 100
Six 100 %
Seven 100
Eight 100 %
Nine 100 %
Ten 100 %
MPP Adoption Agreement 03/25/98 5
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.
XIII. The Employer hereby appoints the ICMA Retirement Corporation as the Plan
Administrator pursuant to the terms and conditions of the ICMA RETIREMENT
CORPORATION 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 not rely on a determination letter issued by the National or
District Office of the Internal Revenue Service as evidence that the Plan is qualified
under section 401 of the Internal Revenue Code. In order to obtain reliance with re-
spect to plan qualification,the Employer must apply to the appropriate key district
office for a determination letter.
In Witness Whereof,the Employer hereby causes this Agreement to be executed on this
day of _' 19—
EMPLOYER
19EMPLOYER Accepted: ICMA RETIREMENT CORPORATION
By: By:
Title: Village Manager Title:
Attest: Attest:
MPP Adoption Agreement 03/25/98 6
401 QUALIFIED PLAN EMPLOYER DATA FORM
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ,.
• Instructions to Employer:Provide necessary information to establish your plan properly. Please contact Client
Services at 1-800-326-7272,if you have any questions.
RC Use Only1CMA
RETIREME\T
CORPORAno
1. Employer Number
General 2. Employer's Full Name(City of, County of, etc.) Miami Shores Village
Plan
Information 3. Employer's Mailing Address 10050 NE 2nd Ave. ,
4. City Miami Shores 5. State FL 6. Zip Code 33138
7. Employer's Federal Tax Identification Number 59-6000373
8. Number of Employees TBD
9. Number of Employees Eligible for Plan 10
10. Last Month of Plan Year(write in month 01-12) 12
Contact 11. Title(not name) of Plan's Primary Contact Person Village :Manager
Information Primary Contact Person will automatically receive all RC correspondence, reports, and bulletins
Telephone ( 305 ) 795-2207
12.Title(not name) of Contact Person for Benefit Payments Chief Financial Officer
Telephone( 305 ) 795-2209
❑ Check here if Contact Person for Benefit Payments should receive RC correspondence,
reports and bulletins
13. Title(not name) of Contact Person for Contributions Chief Financial Officer
Telephone ( 305 ) 795-2209
❑ Check here if Contact Person for Contributions should receive RC correspondence, reports,
and bulletins _
Note: If neither of the boxes in 12 or 13 is checked,default correspondent will be Plan Coordinator named in the resolution.
Implementation 14. Contribution Frequency(check one): ❑ (W)Weekly ❑ (M) Monthly ❑ Other(specify)
I of Plan i ❑ (B) Biweekly ❑ (S) Semi-monthly
4 15. Contribution Data Format(check one): ❑ (T)Tape ❑ (QD) QUICK DISK ❑ (E) EDT
13 (C) Contribution Statement ❑ (D) Diskette
i
i16. First pay date following plan implementation TBD
17. Are employees covered by the plan also covered by another qualified plan? ❑ Yes C1 -No
ICMA Retirement Corporation • P.O. Box 96220 • Washington, DC 20090-6220 • 1-800-326-7272
EXHIBIT B
DECLARATION OF TRUST
OF
ICMA RETIREMENT TRUST
ARTICLE 1. NAME AND DEFINITIONS
Section 1.1 Name: The name of the trust created hereby is the ICMA Retirement Trust.
Section 1.2 Definitions: Wherever they are used herein, the following terms shall have the
following respective meanings:
(a) By-laws. The by-laws referred to in Section 4.1 hereof, as amended from time
to time:
fb) Deferred Compensation Plan. A deferred compensation plan established and
maintained by a Public Employer for the purpose of providing retirement income
and other deferred benefits to its employees in accordance with the provision
of section 457 of the internal Revenue Code.
(c) Employees. Those employees who participate in Qualified Plans and/or Deferred
Compensation Plans.
(d) Employer Trust. A trust created pursuant to an agreement between RC and a
Public Employer, or an agreement between RC and a Public Employer for
administrative services that is not a trust, in either case for the purpose of
investing and administering the funds set aside by such Employer in connection
with its Deferred Compensation agreements with its employees or in
connection with its Qualified Plan. .
(e) Investment Contract. A non-negotiable contract entered into by the Retirement
Trust with a financial institution that provides for a fixed rate of return on
investment.
(f) ICMA. The International City/County Management Association.
(g) ICMA Trustees. Those Trustees elected by the Public Employers in accordance
with the provisions of Section 3.1(a) hereof, who are also members or former
members of the Executive Board of ICMA.
(h) RC Trustees. Those Trustees elected by the Public Employers who, in
accordance with the provisions of Section 3.1(a) hereof, are also members or
former members of the Board of Directors of RC.
(i) Internal Revenue Code. The Internal Revenue Code of 1986, as amended.
(j) Investment Adviser. The Investment Adviser that enters into a contract with
the Retirement Trust to provide advice .with respect to investment of the Trust
Property.
(k) Portfolios. The separate commingled pools of investment established by the
Investment Adviser to the Retirement Trust, under the supervision of the
Trustees, for the purpose of providing investments for the Trust Property.
(1) Public Employee Trustees. Those Trustees elected by the Public Employers
who, in accordance with the provision of Section 3.1 (a) hereof, are full-time
employees of Public Employers.
(m) Public Employer Trustees. Public Employers who serve as trustees of the
Qualified-Plans or Deferred Compensation Plans.
(n) Public Employer. A unit of state or local government, or any agency or
instrumentality thereof, that has adopted a Deferred Compensation Plan or a
Qualified Plan and has executed this Declaration of Trust.
(o) Qualified Plan. A plan that is sponsored by a Public Employer for the purpose
of providing retirement income to its employees and that satisfies the
qualification requirements of Section 401 of the Internal Revenue Code.
(p) Public Employer Trust. A trust that is established by a Public Employer in
connection with its Qualified Plan and that satisfies the requirements of Section
501 of the Internal Revenue Code, or a trust established by-a Public Employer
in connection with its Deferred Compensation Plan and that satisfies the
requirements of Section 457(b) of the Internal Revenue Code.
(q) RC. The International City Management Association Retirement Corporation.
(r) Retirement Trust. The Trust created by this Declaration of Trust. .
(s) Trust Property. The amounts held in the Retirement Trust as provided in
Section 2.3. The Trust Property shall include any income resulting from the
investment to the amounts so held.
- 2 -
(t) Trustees. The Public Employee Trustees, ICMA Trustees and RC Trustees
elected by the Public Employers to serve as members of the Board of Trustees
of the Retirement Trust.
ARTICLE 11. CREATION AND PURPOSE OF THE TRUST; OWNERSHIP OF TRUST PROPERTY
Section 2.1 Creation: (a) The Retirement Trust was created by the execution of this
Declaration of Trust by the initial Trustees and Public Employers and is established
with respect to each participating Public Employer by adoption of this Declaration of
Trust.
(b) The Retirement Trust is hereby expressly made a part of the appropriate Qualified
Plan or Deferred Compensation Plan of each Public Employer that executes or has
executed this Declaration of Trust.
Section 2.2 Purpose and Participation: (a) The purpose of the Retirement Trust is to provide
for the commingled investment of funds held by the Public Employers in connection
with their Deferred Compensation and Qualified Plans. The Trust Property shall be
invested in the Portfolios, in Investment Contracts, -and in other investments
recommended by the Investment Adviser under the supervision of the Board of
Trustees. No part of the Trust Property will be invested in securities issued by Public
Employers.
(b) Participation in the Retirement Trust is limited to (i) pension and profit-sharing
trusts which are maintained by Public Employers and that are exempt under sebtion
501(a) of the Internal Revenue Code because the Qualified Plans related thereto
qualify under section 401(a) of the Internal Revenue Code and (ii) deferred
compensation plans maintained by Public Employers under Section 457 of the Internal
Revenue Code (and trusts maintained by such Public Employers in connection with
such 457 plans).
Section 2.3 Ownership of Trust Property: (a) The Trustees shall have legal title to the Trust
Property. The Trust Property shall be held as follows:
(1) for the Public Employer Trustees for the exclusive benefit of the Employees;
or
GO in the case of a Deferred Compensation Plan maintained by a Public
Employer that has not established a Public Employer Trust for the plan, for the
Public Employer as beneficial owner of the plan's assets.
(b) The portion of the corpus and income of the Retirement Trust that equitably
belongs to any Public Employer Trust may not be used for or diverted to any purpose
3 -
other than for the exclusive benefit of the Employees (or their beneficiaries) who are
entitled to benefits under such Public Employer Trust.
(c) No employer's-Public Employer Trust may assign any part of its equity.or interest
in the Retirement Trust, and any.purported assignment of such equity or interest shall
be void.
ARTICLE 111. TRUSTEES
Section 3.1 Number and Qualification of Trustees: (a)The Board of Trustees shall consist of
nine Trustees. Five of the Trustees shall be full-time employees of a Public Employer
(the Public Employee Trustees) who are authorized by such Public Employer to serve
as Trustee. The remaining four Trustees shall consist of two persons.who, at the time
of election to the Board of Trustees, are members or former members of the
Executive Board of ICMA, and two persons who, at the time of election, are members
or former members of the Board of Directors of RC. One of the ICMA Trustees and
one of the RC Trustees shall, at the time of election, be full-time employees of Public
Employers.
(b) No person may serve as a Trustee for more than two terms in any ten-year period.
Section 3.2 Election and Term: (a) Except for the Trustees appointed to fill vacancies
pursuant to Section 3.5 hereof, the Trustees shall be elected by a vote of a majority
of the voting Public Employers in accordance with the procedures set forth in the
By-Laws.
(b) At the first election of Trustees, three Trustees shall be elected fora term of three
years, three Trustees shall be elected for a term of two years and three Trustees shall
be elected for a term of one year. At each subsequent election, three Trustees shall
be elected, each to serve for a term of three years and until his or her successor is
elected and qualified.
Section 3.3 Nominations: The Trustees who are full-time employees of Public Employers
shall serve as the Nominating Committee for the Public Employee Trustees. The
Nominating Committee shall choose candidates for Public Employee Trustee in
accordance with the procedures set forth in the By-Laws.
Section 3.4 Resignation and Removal: (a) Any Trustee may resign as Trustee (without need
for prior or subsequent accounting) by an instrument in writing signed by the Trustee
and delivered to the other Trustees and such resignation shall be effective upon such
delivery, or at a later date according to the terms of the instrument. Any of the
Trustees may be removed for cause, by a vote of a majority of the Public Employers.'
4 -
(b) Each Public Employee Trustee shall resign his or her position as Trustee within
sixty days of the date on which he or she ceases to be a full-time employee of a
Public Employer.
Section 3.5 Vacancies: The term of office of a Trustee shall terminate and a vacancy shall
occur in the event of his or her death, resignation, removal, adjudicated incompetence
or other incapacity to perform the duties of the office of a Trustee. In the case of a
vacancy, the remaining Trustees shall appoint such person as they in their discretion
shall see fit (subject to the limitations set forth in this Section), to serve for the
unexpired portion of the term of the Trustee who has resigned or otherwise ceased
to be a Trustee. The appointment shall be made by a written instrument signed by a
majority of the Trustees. The person appointed must be the same type of Trustee
(i.e., Public Employee Trustee, ICMA Trustee or RC Trustee) as the person who has
ceased to be a Trustee. An appointment of a Trustee may be made in anticipation of
a vacancy to occur at a later date by reason of retirement or resignation, provided
that such appointment shall not become effective prior to such retirement or
resignation. Whenever a vacancy shall occur, until such vacancy is filled as provided
in this Section 3.5, the Trustees in office, regardless of their number, shall have all
the powers granted to the Trustees'and shall discharge all the duties imposed upon
the Trustees by this Declaration. A written instrument certifying the existence of a
vacancy signed by a majority of the Trustees shall be conclusive evidence of the
existence of such .vacancy.
Section 3.6 Trustees Serve in Representative Capacity: By executing this Declaration, each
Public Employer agrees that the Public Employee Trustees elected by the Public
Employers are authorized to act as agents and representatives of the Public Employers
collectively.
ARTICLE IV. POWERS OF TRUSTEES
Section 4,1 General Powers: The Trustees shall have the power to conduct the business of
the Trust and to carry on its operations. Such power shall include, but shall not be
limited to, the power to:
(a) receive the Trust Property from the Public Employers, Public Employer Trustees
or the trustee or administrator under any Employer Trust;
(b) enter into a contract with an Investment Adviser providing, among other
things, for the establishment and operation of the Portfolios, selection of the
Investment Contracts in which the Trust Property may be invested, selection
of the other investments for the Trust Property and the payment of reasonable
fees to the Investment Adviser and to any sub-investment adviser retained by
the Investment Adviser;
— 5 —
(c) review annually the performance of the investment Adviser and approve
annually the contract with such Investment Adviser;
(d) invest and reinvest the Trust Property in the Portfolios, the Investment
Contracts and in any other investment recommended by the Investment
Adviser, but not including securities issued by Public Employers, provided that
if a Public Employer has directed that its monies be invested in one or more
specified Portfolios or in .an Investment Contract, the Trustees of. the
Retirement Trust shall invest such monies in accordance with such directions;
(e) keep such portion of the Trust Property in cash or cash balances as the
Trustees, from time to time, may deem to be in the best interest of the
Retirement Trust created hereby without liability for interest thereon;
(f) accept and retain for such time as they may deem advisable any securities or
other property received or acquired by them as Trustees hereunder, whether
or not such securities or other property would normally be purchased as
investment hereunder;
(g) cause any securities or other property held as part of the Trust Property to be
registered in the name of the Retirement Trust or in the name of a nominee,
and to hold any investments in bearer form, but the books and records of the
Trustees shall at all times show that all such investments are a part of the
Trust Property;
(h) make, execute, acknowledge, and deliver any and all documents of transfer
and conveyance and any and all other instruments that may be necessary or
appropriate to carry out the powers herein granted;
(i) vote upon any stock, bonds, or other securities; give general or special proxies
or powers of attorney with or without power of substitution; exercise any
conversion privileges, subscription rights, or other options, and make any
Payments incidental thereto; oppose, or consent to, or otherwise participate in,
corporate reorganizations or to other changes affecting corporate securities,
and delegate discretionary powers and pay any assessments or charges in
connection therewith; and generally exercise any of the powers of an owner
with respect to stocks, bonds, securities or other property held as part of the
Trust Property;
(j) enter into contracts or arrangements for goods or services required in
connection with the operation of the Retirement Trust, including, but not
limited to, contracts with custodians and contracts for the provision of
administrative services;
6 -
M borrow or raise money for the purposes of the Retirement Trust in such
amount, and upon such terms and conditions, as the Trustees shall deem
advisable, provided that the aggregate amount of such borrowings shall not
exceed 30% of the value of the Trust Property. No person lending money to
the Trustees shall be bound to see the application of the money lent or to
inquire into its validity, expediency or propriety or any such borrowing;
(1) incur reasonable expenses as required for the operation of the Retirement Trust
and deduct such expenses from of the Trust Property;
(m) pay expenses properly allocable to the Trust Property incurred in connection
with the Deferred Compensation Plans, Qualified Plans, or the Employer Trusts
and deduct such expenses from that portion of the Trust Property to which
such expenses are properly allocable;
(n) pay out of the Trust Property all real and personal property taxes, income taxes
and other taxes of any and all kinds which, in the opinion of the Trustees, are
properly levied, or assessed under existing or future laws upon, or in respect
y of, the Trust Property and allocate any such taxes to the appropriate accounts;
(o) adopt, amend and repeal the By-laws, provided that such By-laws are at all
times consistent with the terms of this Declaration of Trust;
(p) employ persons to make available interests in the Retirement Trust to
employers eligible to maintain a Deferred Compensation Plan under Section 457
or a Qualified Plan under Section 401 of the Internal Revenue Code;
(q) issue the Annual Report of the Retirement Trust, and the disclosure documents
and other literature used by the Retirement Trust;
(r) in addition to conducting the investment program authorized in Section 4.1(d),
make loans, including the purchase of debt obligations, provided that all such
loans shall bear interest at the current market rate;
(s) contract for, and delegate any powers granted hereunder to, such officers,
agents, employees, auditors and attorneys as the Trustees may select,
provided that the Trustees may not delegate the powers set forth in paragraphs
(b), (c) and (o) of this Section 4.1 and may not delegate any powers if such
delegation would violate their fiduciary duties;
(t) provide for the indemnification of the Officers and Trustees of the Retirement
Trust and purchase fiduciary insurance;
(u) maintain books and records, including separate' accounts for each Public
Employer, Public Employer Trustee or Employer Trust and such additional
7 -
separate accounts as are required under, and consistent with, the Deferred
Compensation or Qualified Plan of each Public Employer; and
(v) do all such acts, take all such proceedings, and exercise all such rights and
privileges, although not specifically mentioned herein, as the Trustees may
deem necessary or appropriate to administer the Trust Property and to carry
out the purposes of the Retirement Trust.
Section 4.2 Distribution of Trust Property: Distributions of the Trust property shall be made
to, or on behalf of, the Public Employer or Public Employer Trustee, in accordance
with the terms of the Deferred•Compensation Plans, Qualified Plans or Employer
Trusts. The Trustees of the Retirement Trust shall be fully protected in making
payments in accordance with the directions of the Public Employers, Public Employer
Trustees or trustees or administrators of any Employer Trust without ascertaining
whether such payments are in compliance with the provisions of the applicable
Deferred Compensation or Qualified Plan or Employer Trust.
Section 4.3 Execution of instruments: The Trustees may unanimously designate any one or
more of the Trustees to execute any instrument or document on behalf of all,
including but not limited to the signing or endorsement of any check and the signing
of any applications, insurance and other contracts, and the action of such designated
Trustee or Trustees shall have the same force and effect as if taken by all the
Trustees.
ARTICLE V. DUTY OF CARE AND UASIUTY OF TRUSTEES
Section 5.1 Duty of Care: In exercising the powers hereinbefore granted to the Trustees, the
Trustees shall perform all acts within their authority for the exclusive purpose of
providing benefits for the Public Employers in connection with non-trusteed Deferred
Compensation Plans and for the Public Employer Trustees, and shall perform such
acts with the care, skill, prudence and diligence in the circumstances then prevailing
that a prudent person acting in a like capacity and familiar with such matters would
use in the conduct of an enterprise of a like character and with like aims.
Section 5.2 Liability: The Trustees shall not be liable for any mistake of judgment or other
action taken in good faith, and for any action taken or omitted in reliance in good
faith upon the books of account or other records of the Retirement Trust, upon the
opinion of counsel, or upon reports made to the Retirement Trust by any of its
officers, employees or agents or by the Investment Adviser or any sub-investment
adviser, accountant, appraiser or other expert or consultant selected with reasonable
care by the Trustees, officers or employees of the Retirement Trust. The Trustees
shall also not be liable for any loss sustained by the Trust Property by reason of any
investment made in good faith and in accordance with the standard of care set forth
in Section 5.1.
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Section 5.3 Bond: No Trustee shall be obligated to give any bond or other security for the
performance of any of his or her duties hereunder.
ARTICLE VI. ANNUAL REPORT TO SHAREHOLDERS
The Trustees shall annually submit to the Public Employers and Public Employer
Trustees a written report of the transactions of the Retirement Trust, including financial
statements which shall be certified by independent public accountants chosen by the
Trustees.
ARTICLE V11. DURATION OR AMENDMENT OF RETIREMENT TRUST
Section 7.1 Withdrawal: A Public Employer or Public Employer Trustee may, at any time,
withdraw from this Retirement Trust by delivering to the Board of Trustees a written
statement of withdrawal. In such statement, the Public Employer or Public Employer
Trustee shall acknowledge that the Trust Property allocable to the Public Employer
is derived from compensation deferred by employees of such Public Employer
pursuant to its Deferred Compensation Plan or from contributions to the accounts of
Employees pursuant to a Qualified Plan, and shall desigriate the financial institution
to which such property shall be transferred by the Trustees of the Retirement Trust
or by the trustee or'administrator under an Employer Trust.
Section 7.2 Duration: The Retirement Trust shall continue until terminated by the vote bf a
majority of the Public Employers, each casting one vote. Upon termination, all of the
Trust Property shall be paid out to the Public Employers, Public Employer Trustees or
the trustees or administrators of the Employer Trusts, as appropriate.
Section 7.3 Amendment: The Retirement Trust may be amended by the vote of a majority
of the Public Employers, each casting one vote.
Section 7.4 Procedure: A resolution to terminate or amend the Retirement Trust or to
remove a Trustee shall be submitted to a vote of the Public Employers if: (i) a majority
of the Trustees so direct, or; (ii) a petition requesting a vote signed by not less than
25 percent.of the Public Employers, is submitted to the Trustees.
ARTICLE Vlll. MISCELLANEOUS
Section 8.1 Governing Law: Except as otherwise required by state or local law, this
Declaration of Trust and the Retirement Trust hereby created shall be construed and
regulated by the laws of the District of Columbia.
Section 8.2 Counterparts: This Declaration may be executed by the Public Employers and
Trustees in two or more counterparts, each of which shall be deemed an original but
all of which together shall constitute one and the same instrument.
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