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ORDINANCE NO. 3 39 5
AN ORDINANCE of the City Council of the City
of Kent, Washington, adopting an I.R.C. Section 457
Deferred Compensation Plan with the U.S. Conference of
Mayors Deferred Compensation Program and its attendant
investment options and authorizing the Mayor, or his/her
designate, to execute such agreements and contracts as are
necessary to implement the Plan.
WHEREAS, the employees of the City of Kent ("City") render valuable
WHEREAS, the City has considered the establishment of a new Deferred
Compensation Plan with the U.S. Conference of Mayors to be made available to all eligible
City employees and elected officials pursuant to federal legislation permitting those Plans;
and
WHEREAS, certain substantial tax benefits could accrue to employees and
elected officials participating in those Deferred Compensation Plans; and
WHEREAS, these tax benefits will act as incentives to City employees to
voluntarily set aside and invest portions of their current income to meet their future
financial requirements and supplement their City retirement and Social Security, at no cosi
to the City; and
PEBSCO ¢ 457 P
WHEREAS, the U.S. Conference of Mayors has established a master)
prototype deferred compensation program for cities and political subdivisions permitting
its member cities and their employees to enjoy the advantages of this program; and
WHEREAS, the U. S. Conference of Mayors, as Plan Administrator, agrees)
to hold harmless and indemnify the City, its appointed and elected officers and
participating employees from any loss resulting from the U.S. Conference of Mayors or its
Agents' failure to perform its duties and services pursuant to the U.S. Conference of Mayors
Plan. NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Plan Adopted. The City adopts the U.S. Conference of
Mayors Deferred Compensation Program and its attendant investment options and hereby
establishes the City of Kent, Washington, Deferred Compensation Plan for the voluntary
participation of all eligible City employees and elected officials.
SECTION 2. Mayor and EmploKee Servi
to Execute Necessary Documents. The Mayor or his designee is hereby authorized (1) to
enter into an administrative agreement and any and all agreements necessary to implement
the program with the U.S. Conference of Mayors as plan administrator, subject to the terms
of this ordinance and further subject to final approval of the City Attorney; (2) to execute,
for the City, individual participation agreements with each employee requesting an
individual participation agreement, (3) to act as the "Administrator" of the Plan
representing the City. Other than the incidental expenses of collecting and disbursing the
employees' deferrals and other minor administrative matters, there is to be no cost to the
City for the Program.
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SECTION 3. Plan Assets to be Held in Annuity or Custodial Account.
The City and the U.S. Conference of Mayors shall hold the funds applied to this Plan in
either a Deferred Compensation Variable Annuity or in an I.R.C. Section 457 Custodial
Account for the exclusive benefit of the City's Plan participants.
SECTION 4. Program Executed. The City hereby executes the Program.
SECTION 5. Plan and its Investments not Endorsed. The City's
continuance of the Plan does not constitute an endorsement of the Plan or of any investment
options offered through the Plan.
SECTION 6. Ratification. Any act consistent with the authority and prior
to the effective date of this ordinance is ratified and confirmed.
SECTION 7. Severability. If any one or more sections, subsections, or
sentences of this ordinance are held to be unconstitutional or invalid, such decision shall
not affect the validity of the remaining portion of this ordinance and the same shall remain
in full force and effect.
SECTION 8. Effective Date. This ordinance shall take effect and be in
force thirty (30) days from the time of its final passage, as provided by law.
ATTEST:
BRENDA JACOBEO, CITY CLERK
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APPROVED AS TO FORM:
A. LUBOViCH. CITY ATTORNEY
PASSED: - day of '1998.
APPROVED: day of1998.
PUBLISHED: day of �12L 1998.
I hereby certify that this is a true copy of Ordinance No. .339-6-, passed
by the City Council of the City of Kent, Washington, and approved by the Mayor of the
City of Kent as hereon indicated.
(SEAL)
BRENDA JA OB R. CITY CLERK
P:U,AW�ORDP1An CA457LOAN2_WPD
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