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Resolution 14920
CITYOFALAMEDARESOLUTIONNO.14920 ESTABLISHINGTHECITYOFALAMEDAINTERNATIONAL ASSOCIATIONOFFIREFIGHTERS(IAFF)SUPPLEMENTAL RETIREMENTPLANANDTRUSTAGREEMENTFORIAFF EMPLOYEESHIREDAFTERJUNE7,2011ASPROVIDEDINTHE MEMORANDUMOFUNDERSTANDINGBETWEENTHECITYAND IAFF WHEREAS,thememorandumofunderstanding(MOU)regardingthe termsandconditionsofemploymentoftheemployeesoftheCityofAlameda (City)whoaremembersoftheInternationalAssociationOfFirefighters, Local689(IAFF)requirestheCitytoadoptasupplementalretirementplanthat allowsfortheaccrualofretireehealthbenefits;and WHEREAS,pursuanttotheMOU,theCityhaspreparedadraftofsucha plan,titledthe"CityOfAlamedaIAFFSupplementalRetirementPlan"(Plan),a copyofwhichhasbeenpresentedtotheCityCouncil,andaretirementtrust, titledthe"CityOfAlamedaIAFFSupplementalRetirementPlanTrust Agreement"(Trust),acopyofwhichhasbeenpresentedtotheCityCouncil,that areintendedtobeaqualifiedretirementplanandaqualifiedretirementtrust undersections401(a)and501(a)oftheInternalRevenueCode(Code);and WHEREAS,thedraftsofthePlanandtheTrustbeenreviewedand approvedbytheIAFF;and WHEREAS,pursuanttothePlanandtheMOU,employeeswhoare subjecttotheMOUandarehiredbytheCityafterJune7,2011shallparticipate inthePlanandmustmakecontributionstothePlanequalto(i)3%ofregular basemonthlysalaryand(ii)uponterminationofemployment,theemployee's unusedvacationleave,unusedcompensatoryleave,andupto50%ofthe employee'sunusedsickleave(i.e.,totheextentnotconvertedtoservicecredit underCaIPERS);and WHEREAS,pursuanttothePlanandtheMOU,theCitydesiresto"pick up"theemployeecontributionsaspermittedbyCodesection414(h)(2)suchthat theemployeecontributionswillbetreatedasemployercontributionsratherthan employeecontributionsforincometaxpurposes;and WHEREAS,neithertheCitynorthePlanwillpermitaparticipanttohavea cashordeferredelectionrightwithrespecttotheseemployeecontributionsorto receivethecontributedamountsdirectlyinsteadofhavingthempaidbytheCity tothePlan;and WHEREAS,theInternalRevenueService(IRS)issuedRevenue Ruling2006-43requiringthatallemployerstakeformalactiontoprovidethatthe contributionsonbehalfoftheemployees,althoughdesignatedasemployee contributions,arebeingpaidbytheemployerinlieuofemployeecontributions; and WHEREAS,theCitynowwishestotaketheformalactionrequiredto"pick up"theemployeecontributionsunderthePlanpursuanttoCode section414(h)(2)asinterpretedbytheIRS;and WHEREAS,pursuanttothePlan,theCityistoappointaRetirement CommitteetoserveastheAdministratorofthePlanwiththedutiessetforthin thePlan;and WHEREAS,theCitywishestoappointtheemployeesoftheCitywho occupythepositionsofAdministrativeServicesDirectorandFinanceDirectoras membersoftheRetirementCommittee;and WHEREAS,pursuanttotheTrust,theCityistoappointtheinitialtrustees oftheTrustafterconsultationwiththePensionInvestmentCommitteeappointed bytheIAFFunderthePlan(andthentheresponsibilityforappointingtrustees residessolelywiththePensionInvestmentCommittee);and WHEREAS,theCityandthePensionInvestmentCommitteewishto appointtheemployeesoftheCitywhooccupythepositionsofAdministrative ServicesDirector,FinanceDirectorandPresidentoftheInternationalAssociation ofFirefighters,Local689astrustees;and WHEREAS,theMOUrequiresthatthePlanbeadministeredbyPeery& Associates,Inc.,athirdpartyadministratorofplanssuchasthePlan;and WHEREAS,theCityhaspreparedadraftofanagreementbetweenthe PlanandPeery&Associates,Inc.tobesignedbytheRetirementCommitteeas theAdministratorofthePlan,acopyofwhichhasbeenpresentedtotheCity Council;and WHEREAS,legalcounselfortheCitywithrespecttothePlanandTrust hasrecommendedthatthePlanandTrustbesubmittedtotheIRSfora determinationletterregardingthequalifiedstatusofthePlanandTrustunder Codesections401(a)and501(a). NOW,THEREFORE,BEITRESOLVEDthattheCityCounciloftheCity ofAlamedaapprovestheadoptionofthePlanandtheTrustinsubstantiallythe sameformsaspresentedtotheCityCouncil;and BE IT FURTHERRESOLVEDthattheCityCouncilauthorizestheCity Managerorhis/herdesigneetoexecutethePlanandTrustdocumentsTrustin substantiallythesameformsaspresentedtotheCityCouncilonbehalfofthe City;and BEITFURTHERRESOLVEDthattheCityCouncilapprovesthe"pick-up" bytheCityoftheemployeecontributionstothePlanaspermittedbyCode section414(h)(2),recognizingthat(i)thecontributions,althoughdesignatedas employeecontributions,arebeingpaidbytheCityastheemployerinlieuof contributionsbytheemployees,(ii)theemployeesshallnothaveacashor deferredelectionrightwithrespecttotheseemployeecontributions,(iii)the employeesshallnothavearighttoreceivethecontributedamountsdirectly insteadofhavingthempaidbytheCitytothePlan,and(iv)thecontributionswill betreatedasemployercontributionsforfederalincometaxpurposes;and BE IT FURTHERRESOLVEDthattheCityCouncilauthorizestheCity Managerorhis/herdesigneetoappointtheemployeesoftheCitywhooccupy thepositionsofAdministrativeServicesDirectorandFinanceDirectoras membersoftheRetirementCommittee;and BEITFURTHERRESOLVEDthattheCityCouncilauthorizestheCity Managerorhis/herdesigneetoappointtheemployeesoftheCitywhooccupy thepositionsofAdministrativeServicesDirector,FinanceDirectorandPresident oftheInternationalAssociationofFirefighters,Local689astrustees;and BEITFURTHERRESOLVEDthattheCityCouncilauthorizesthe RetirementCommittee,astheAdministratorofthePlan,toenterintothe agreementbetweenthePlanandPeery &Associates,Inc.Trustinsubstantially thesameformaspresentedtotheCityCouncil;and BEITFURTHERRESOLVEDthattheCityCouncilauthorizestheCity Managerorhis/herdesigneetosubmitthePlanandTrusttotheIRSfora determinationletterregardingthequalifiedstatusofthePlanandTrustunder Codesections401(a)and501(a);and BE IT FURTHERRESOLVEDthattheCityCouncilauthorizestheCity Managerorhis/herdesigneetoexecutesuchotherdocumentsandtoperform suchotheractsasarenecessaryorappropriatetoeffectuatetheforegoing, including,butnotlimited,toadoptinganyamendmentsasmaybenecessaryor appropriatetoupdatethePlanortheTrustforanyapplicablechangesinthe Codesection401(a)or501(a)qualificationrequirements. ****** I,theundersigned,herebycertifythattheforegoingResolutionwasduly andregularlyadoptedandpassedbytheCounciloftheCityofAlamedaina regularmeetingassembledonthe20th dayofMay,2014,bythefollowingvoteto wit: AYES:CouncilmembersChen,Oaysog,EzzyAshcraft,Tam andMayorGilmore-5. NOES:None. ABSENT:None. ABSTENTIONS:None. IN WITNESS,WHEREOF,Ihavehereuntosetmyhandandaffixedthe sealofsaidCitythis21 st dayofMay,2014.