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0576 /f a RESOLUTION NO. A RESOLUTION OF THE CITY OF WEST MEMPHIS, ARKANSAS, PROVIDING FOR THE CONTINUATION AND CONSOLIDATION OF THE SEPARATE PENSION FUNDS FOR UTILITY DEPARTMENT EMPLOYEES AND FOR OTHER NON-UNIFORMED EMPLOYEES, SPECIFYING SOURCES OF REVENUE FOR THE MAINTENANCE OF SAID CONSOLIDATED FUND: PROVIDING FOR THE MANAGEMENT AND INVESTMENT THEREOF: AND RE- PEALING INCONSISTENT ORDINANCES OR RESOLUTIONS. WHEREAS, the City of West Memphis, hereinafter referred to as City, established separate defined benefit pension plans for the exclusive benefit of (i) its Utility Department and (ii) its other Non-Uniformed Employees, WHEREAS, said pension plans have been funded under the terms and conditions of separate group annuity contracts issued by legal reserve life insurance companies authorized to conduct business in the State of Arkansas; and WHEREAS, for reasons of combining non-uniformed employees pensions, the City has effected a discontinuance of contributions to each such group annuity contract, with the (actuarial) value of each participant's accrued benefit being converted to a "paid-up" status; and WHEREAS, it is the City's desire and intent to substantively modify the plans, for subsequent accruals, from the present defined benefit structure to a defined contribution structure; and WHEREAS, in order to consolidate the subsequent operation, administration and funding of said plans, the City now desires that all Utility Department Employees and all other Non-Uniformed Employees be covered under a single successor defined contribution money purchase plan; and WHEREAS, the City also desires that the terms of the single successor plan be accomplished under the terms of a formal trust, the primary investment of which shall be a group annuity contract issued by a legal reserve life insurance company authorized to conduct business in the State of Arkansas. RESOLVED, That the City Council of the City of West Memphis authorizes the continuation and consolidation of pension funds for Utility Department and non-uniform employees, as set forth in the foregoing . . and following sections of this document. SECTION I; That a "Non-Uniformed Employees Money Purchase Pension Fund, " for the exclusive benefit of all full-time Non- uniformed Employees of the City of West Memphis shall be implemented, as the successor to the plans heretofore maintained, on January 1, 1977. All part-time employees of the City of West Memphis who work less than 30 hours per week are hereby expressly excluded from member- ship in said fund and are to be completely eliminated from coverages. SECTION II: The Non-Uniformed Employees Money Purchase Pension Fund hereby created and established shall derive the revenue necessary to maintain its operation in conformity with Law from the following sources: The City of West Memphis at 5% of employee's salaries and an option on employee's part to contribute 2% to 10% of salary, with the Insurance Company to furnish each employee a quarterly printout showing the City's contribution and the employee's contribution. The total of all moneys of property derived from the sources above specified shall constitute the Non-Uniformed Employees Money Purchase Pension Fund of the City of West Memphis. SECTION III: The administration and management of said Fund shall be conducted by the Fund Trustees, to be comprised of: Theado Robertson, One Year; Mary Lou Rasico, Two Years; Gary Rushing, Three Years. The term of any such officer or committee chairman, shall be co-incident with such officer's or committee chairman's term of office. Notwithstanding the foregoing, each of the Fund Trustees shall continue to serve until his successor is appointed, or elected, and qualified as a member of said body. SECTION IV: It is hereby determined that the contributions required hereunder shall be invested under the terms of a Group Annuity Con- tract entered into by and between the Fund Trustees and Aetna Life Insurance Company, a legal reserve life insurance company, duly tit authorized to do business in the State of Arkansas. By reason of this section, the Fund Trustees shall be, and are hereby, authorized and directed to apply such principal or income in said Fund as may be required to maintain the Plan on a currently funded basis. It shall be the duty of said Trustees: (a) to hold all moneys, property and other assets received by the fund in trust exclusively for the purposes set forth in this Resolution. Said Commissioners may, however, invest any excess funds in its hands at any time, in securities guaranteed by the United States of America, or other legal investments as defined and authorized by the State of Arkansas, and (b) to establish a successor plan document entitled - "THE CITY OF WEST MEMPHIS NON-UNIFORMED EMPLOYEES MONEY PURCHASE PENSION PLAN", setting forth in detail the plan provisions which will be used to implement this document, and (c) to do everything necessary to ensure the proper completion and submission of any forms as may be required by the State of Arkansas, and (d) to do everything necessary to ensure that the Plan would be qualifiable under Section 401 (a) of the Internal Revenue Code, as amended from time to time; however, nothing herein contained shall be construed to be an irrevocable election to have the terms of the Employee Retirement Income Security Act of 1974 apply to the operation of this Plan. SECTION V: The proper officials of the City, i. e. , the Mayor, or in her absence the Vice Mayor, are herewith authorized and directed to sign and execute all papers for the continuation of the Plan, to be attested by counsel for the City, and the Seal of the City impressed L thereon. SECTION VI: That all Ordinances or parts of Ordinances conflicting, or Resolutions or parts of Resolutions conflicting with the provisions • of this Resolution be and the same are hereby repealed to the extent of such conflict. PASSED AND APPROVED This day of ,.09/Yc'//i 7 1977. MAYOR ATTEST: CITY CLERK IttY'