RES-10086 Restating Public Employees' Deferred Compensation PlanRESOLUTION NO. 10086
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE AMENDING AND RESTATING
A DEFERRED COMPENSATION PLAN FOR ITS
PUBLIC EMPLOYEES BY ACCEPTING AND
ADOPTING THE AIG VALlC 457(b) DEFERRED
COMPENSATION PLAN TO BE PROVIDED BY
THE VARIABLE ANNUITY LIFE INSURANCE
COMPANY
WHEREAS, the City of Orange (the City) is a municipal corporation, which exercises
governmental functions and powers and is organized and existing under the laws of the State of
California; and
WHEREAS, the City has previously established a Deferred Compensation Plan, as
defined by Internal Revenue Code (IRC) Section 457, applicable to each qualified City
employee or elected or appointed official who has elected to participate therein (the Prior
Plan); and
WHEREAS, the Prior Plan was most recently amended and restated by the City
Council on October 22, 2002 to incorporate the provisions of the Economic Growth and Tax
Relief Reconciliation Act of2001 (the Act); and
WHEREAS, following the most recent amendment and restatement of the Prior Plan,
the Internal Revenue Service (IRS) issued model amendments incorporating the provisions of
the Act, final IRC regulations and other pertinent IRS rulings and related legislation; and
WHEREAS, the Prior Plan is being provided to the City by the Variable Annuity
Life Insurance Company (AIG V ALIC); and
WHEREAS, AIG V ALIC has recommended modifications to the Prior Plan
consistent with the final IRC regulations, the model amendments, subsequent IRS guidance,
proposed IRC regulations and other pertinent legislation; and
WHEREAS, this City Council desires to amend and restate the Prior Plan for the
purpose of incorporating therein the aforementioned recommended modifications.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Orange as follows:
Section 1.The foregoing recitals are true and correct.
Section 2. The Prior Plan is hereby amended and restated in the form of the
Specimen 457(b) Deferred Compensation Plan attached hereto (the Plan), which Plan is
accordingly hereby accepted and adopted and shall become effective as to each City
employee or elected or appointed official who has elected to participate therein on and after
the effective date of the Plan; that is, January I, 2006.
Section 3. The assets of the Plan shall be held in an Investment Trust/Custodial
Fund with a bank, trust company, financial institution or other legally authorized entity
appointed by the City or its Director of Finance to have custody of Plan assets for the
exclusive benefit of the Plan participants and their beneficiaries, and the assets shall not be
diverted to any other purpose.
Section 4. All actions heretofore taken by the officers and agents of the City with
respect to the administration of the Plan are hereby approved, confirmed and ratified, with
such additions thereto or changes therein as are approved by the Director of Finance of the
City upon consultation with the City Attorney. Moreover, the Director of Finance of the City
is hereby authorized and directed to do any and all things and take any and all actions and
execute any and all custodial agreements, trusts, certificates, agreements and other
documents, which he may deem necessary or advisable in order to administer the Plan in
accordance with this Resolution.
ADOPTED this 13th day of June, 2006.
Lt/1.
y of Orange
ATTEST:
Lu " t1
Mary E.ity Clerk, Ci range
I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby
certify that the foregoing Resolution was duly and regularly adopted by the City Council of
the City of Orange at a regular meeting thereof held on the 13th day of June, 2006, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCILMEMBERS: Smith, Murphy, Cavecche, Durnitru
COUNCILMEMBERS: None
COUNCILMEMBERS: None
COUNCILMEMBERS: None
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Mary E.City Clerk, Ci
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