2007-05 Deferred Comp for City EmployeesRESOLUTION NO. 07 -05
A RESOLUTION OF THE CITY OF OKEECHOBEE, FLORIDA,
ESTABLISHING A DEFERRED COMPENSATION PLAN TO BE
ADMINISTERED BY THE ICMA RETIREMENT CORPORATION;
PROVIDING SOME OR ALL OF THE FUNDS HELD UNDER SUCH PLAN
BE INVESTED IN THE VANTAGE TRUST COMPANY; PROVIDING THAT
THE ACCOUNTS SUPERVISOR WILL BE THE COORDINATOR FOR THIS
PROGRAM, AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Okeechobee has employees rendering valuable services; and
WHEREAS, the establishment of a deferred compensation plan for such employees serves
the interest of the City of Okeechobee by enabling it to provide reasonable retirement
security for its employees, by providing increased flexibility in its personnel
management system, and by assisting in the attraction and retention of competent
personnel; and
WHEREAS, the City of Okeechobee has determined that the establishment of a deferred
compensation plan to be administered by the ICMA Retirement Corporation serves
the above objectives; and
WHEREAS, the City of Okeechobee desires that its deferred compensation plan be
administered by the ICMA Retirement Corporation, and that some or all of the funds
held under such plan be invested in the Vantage Trust Company, a trust established
by public employers for the collective investment of funds held under their retirement
and deferred compensation plans.
NOW, THEREFORE, be it resolved before the City Council for the City of Okeechobee,
Florida; presented at a duly advertised public meeting; and passed by majority vote
of the City Council; and properly executed by the Mayor or designee, as Chief
Presiding Officer for the City, hereby adopts the deferred compensation plan (the
"Plan in the form of the ICMA Retirement Corporation Deferred Compensation Plan
and Trust, referred to as Exhibit A, attached herewith.
BE IT FURTHER RESOLVED that the City of Okeechobee hereby executes the
Declaration of Trust of the Vantage Trust Company, attached hereto as Exhibit B,
intending this execution to be operative with respect to any retirement or deferred
compensation plan subsequently established by the City of Okeechobee, if the
assets of the Plan are to be invested in the Vantage Trust Company.
BE IT FURTHER RESOLVED that the assets of the Plan shall be held in trust, with the City
of Okeechobee serving as trustee, for the exclusive benefit of the Plan participants
and their beneficiaries and the assets shall not be diverted to any other purpose.
BE IT FURTHER RESOLVED that the Plan will not permit loans and will not offer a Sidecar
IRA program.
BE IT FURTHER RESOLVED that the City of Okeechobee hereby agrees to serve as
trustee under the Plan.
Page 1 of 6
BE IT FURTHER RESOLVED that the Accounts Supervisor shall be the coordinator for this
program; shall receive necessary reports, notices, etc. from the ICMA Retirement
Corporation or the Vantage Trust Company; shall cast, on behalf of the City of
Okeechobee, any required votes under the Vantage Trust Company; Administrative
duties to carry out the Plan may be assigned to the appropriate departments, and is
authorized to execute all necessary agreements with ICMA Retirement Corporation
incidental to the administration of the Plan.
INTRODUCED AND ADOPTED in regular session this 17 day of April, 2007.
ATTEST:
Lane Gamiotea, CMC, City Clerk
REVIEWED FOR LEGAL SUFFICIENCY:
f
ohn R. Cook, City Attorney
Page 2 of 6
James E. Kirk, Mayor
The administrative services to be performed by ICMA -RC under this Agreement shall be
as follows:
(a) Participant enrollment services, including providing a welcome package and
enrollment kit containing instructions and notices necessary to implement
the Plan's administration.
(b) Establishment of participant accounts for each employee participating in the
Plan for whom ICMA -RC receives appropriate enrollment forms and
records. ICMA -RC is not responsible for determining if such Plan
participants are eligible under the terms of the Plan.
(c) Allocation in accordance with participant directions received in good
order of individual participant accounts to investment funds offered under
the Trust.
(d) Maintenance of individual accounts for participants reflecting amounts
deferred, income, gain or loss credited, and amounts distributed as
benefits.
(e) Maintenance of records for all participants for whom participant accounts
have been established in paper or electronic format. These files shall include
enrollment instructions, beneficiary designation instructions (to the extent
provided to ICMA -RC) and all other written correspondence and documents
concerning each participant's account, and if applicable, records of any
transaction conducted through the Voice Response Unit "VRU the
Internet or other electronic means.
(f) Provision of periodic reports to the Employer and participants of the status
of Plan investments and individual accounts.
Communication to participants of information regarding their rights and
elections under the Plan.
(h) Making available Investor Services Representatives through a toll -free
telephone number from 8:30 a.m. to 9:00 p.m. Eastern Time, Monday
through Friday (excluding holidays and days on which the securities
markets or ICMA -RC are closed for business (including emergency
closings), to assist participants.
Making available a toll -free number and access to VantageLine, ICMA
RC's interactive VRU, and ICMA -RC's web site, to allow participants to
access certain account information and initiate plan transactions at any
time.
(g)
(i)
Exhibit A
Administrative Services
Plan number 306160
(j) Distribution of benefits as agent for the Employer in accordance with
terms of the Plan.
Page 3 of 6
Plan number 306160
(k) Upon approval by the Employer that a domestic relations order is an
acceptable qualified domestic relations order under the terms of the Plan,
ICMA -RC will establish a separate account record for the alternate payee
and provide for the investment and distribution of assets held thereunder.
Loans may be made available on the terms specified in the Loan Guidelines,
if loans are adopted by the Employer.
Online Advice may be made available through a third party vendor on the
terms specified on ICMA -RC's website.
Page 4 of 6
Exhibit B
DECLARATION OF TRUST
This Declaration of Trust (the "Group Trust Agreement is made as of the 19th day of May, 2001, by VanrageTrust Company,
which declares itself co be the sole Trustee of the trust hereby created.
W HEREAS, the ICMA Retirement Trust was created as a vehicle for the commingling of the assets of governmental plans
d governmental units described in Section 818(a)(6) of the internal Revenue Code of 1986, as amended, pursuant to a
Declaration of Trust dated October 4, 1982, as subsequently amended, a copy of which is attached hereto and incorporated by
reference as ser our below (the "ICMA Declaration and
WHEREAS, the trust created hereunder (the "Group Trust is intended co meet the requirements of Revenue Ruling 81-
100, 1981 -1 C.B. 326, and is established as a common trust fund within the meaning of Section 391:1 of Title 35 of the New
Hampshire Revised Statutes Annotated, to accept and hold for investment purposes the assets of the Deferred Compensation
and Qualified Plans held by and through the ICMA Retirement Trust.
NOW, THEREFORE, the Group Trust is created by the execution of this Declaration of Trust by the Trustee and is established
with respect to each Deferred Compensation and Qualified Plan by the transfer to the Trustee of such Plan's assets in the
ICMA Retirement Trust, by the Trustees thereof, in accord with the following provisions:
(a) Incorporation of ICMA Declaration by Reference; ICMA By -Laws. Except as otherwise provided in this Group
Trust Agreement, and to the extent not inconsistent herewith, all provisions of the ICMA Declaration are
incorporated herein by reference and made a parr hereof, to be read by substituting the Group Trust for the
Retirement Trust and the Trustee for the Board of Trustees referenced therein. In this respect, unless the
context clearly indicates otherwise, all capitalized terms used herein and defined in the ICMA Declaration
have the meanings assigned to them in the ICMA Declaration. [n addition, the By -Laws of the ICMA
Retirement Trust, as the same may he amended from time -to -time, are adopted as the By -Laws of the Group
Trust to the extent nor inconsistent with the terms of this Group Trust Agreement_
Notwithstanding the foregoing, the terms of the ICMA Declaration and By -Laws are further modified with
respect to the Group Trust created hereunder, as follows:
any reporting, distribution, or other obligation of the Group Trust vis -a -vis any Deferred
Compensation Plan, Qualified Plan, Public Employer, Public Employer Trustee, or Employer Trust
shall be deemed satisfied to the extent that such obligation is undertaken by the ICMA Retirement
Trust (in which case the obligation of the Group Trust shall run to the ICMA Retirement Trust); and
2. all provisions dealing with the number, qualification, election, term and nomination of Trustees shall
not apply, and all other provisions relating to trustees (including, but not limited to, resignation
and removal) shall be interpreted in a manner consistent with the appointment of a single corporate
trustee.
(b) Compliance with Revenue Procedure 81 -100. The requirements of Revenue Procedure 81 -100 are applicable to
the Group Trust as follows:
1. Pursuant to the terms of this Group Trust Agreement and Article X of the By -Laws, investment in the
Group Trust is limited to assets of Deferred Compensation and Qualified Plans, investing through the
ICMA Retirement Trust.
2. Pursuant to the By -Laws, the Group Trust is adopted as a part of each Qualified Plan that invests
herein through the ICMA Retirement Trust.
3. In accord with the By -Laws, that part of the Group Trust's corpus or income which equitably belongs
to any Deferred Compensation and Qualified Plan may not be used for or diverted to any purposes
other than for the exclusive benefit of the Plan's employees or their beneficiaries who are entitled to
benefits under such Plan.
Page 5 of 6
(c) Governing Law. Except as otherwise required by federal, state or local law, this Declaration of Trust (including
the ICI\1A Declaration to the extent incorporated Iie.rein) and the Group Trust created hereunder shall be
construed and determined in accordance with applicable laws of the State of New Hampshire.
(d) Judicial Proceedings. The Trustee may at any time initiate an action or proceeding in the appropriate state
or federal courts within or outside the state of New Hampshire for the settlement of its accounts or for the
determination of any question of construction which may arise or for instructions.
IN WITNESS WHEREOF, the Trustee has executed this Declaration of Trust as of the day and year first above written.
VANTAGETRUST COMPANY
r 1
By: L:t,41/4_
Name: Paul E Gallagher
Title: Secretary
In accord with the By -Laws, no Deterred Compensation Plan or Qualified Plan may assign any or
parr of its equity or interest in the ;tst, and any purported assignment of such equity or
interest shall be void.
Page 6 of 6
ADMINISTRATIVE SERVICES AGREEMENT
Between
ICMA Retirement Corporation
and
City of Okeechobee
Type: 457
Account #: 306160
Plan number 306160
ADMINISTRATIVE SERVICES AGREEMENT
This Administrative Services Agreement ( "Agreement "), made as of the day
of , 2007 (herein referred to as the "Inception Date "), between the International
City /County Management Association Retirement Corporation ( "ICMA -RC "), a
nonprofit corporation organized and existing under the laws of the State of Delaware, and
the City of Okeechobee ( "Employer "), a City organized and existing under the laws of
the State of Florida with an office at 55 SE 3rd Avenue, Okeechobee, Florida 34974.
RECITALS
Employer acts as a public plan sponsor for a retirement plan ( "Plan") with
responsibility to obtain investment alternatives and services for employees participating
in that Plan;
VantageTrust (the "Trust ") is a common law trust governed by an elected Board
of Trustees for the commingled investment of retirement funds held by various state and
local governmental units for their employees;
ICMA -RC acts as investment adviser to the Trust; ICMA -RC has designed, and
the Trust offers, a series of separate funds (the "Funds ") for the investment of plan assets
as referenced in the Trust's principal disclosure document, "Making Sound Investment
Decisions: A Retirement Investment Guide." ( "Retirement Investment Guide ").
The Funds are available only to public employers and only through the Trust and
ICMA -RC.
In addition to serving as investment adviser to the Trust, ICMA -RC provides a
complete offering of services to public employers for the operation of employee
retirement plans including, but not limited to, communications concerning investment
alternatives, account maintenance, account record - keeping, investment and tax reporting,
transaction processing, benefit disbursement, and asset management.
AGREEMENTS
1. Appointment of ICMA -RC
Employer hereby appoints ICMA -RC as Administrator of the Plan to perform all
nondiscretionary functions necessary for the administration of the Plan with respect to
assets in the Plan deposited with the Trust. The functions to be performed by ICMA -RC
shall be those set forth in Exhibit A to this Agreement.
2
Plan number 306160
2. Adoption of Trust
Employer has adopted the Declaration of Trust of VantageTrust and agrees to the
commingled investment of assets of the Plan within the Trust. Employer agrees that
operation of the Plan and the investment, management, and distribution of amounts
deposited in the Trust shall be subject to the Declaration of Trust, as it may be amended
from time to time and shall also be subject to terms and conditions set forth in disclosure
documents (such as the Retirement Investment Guide or Employer Bulletins) as those
terms and conditions may be adjusted from time to time. It is understood that the term
"Employer Trust" as it is used in the Declaration of Trust shall mean this Administrative
Services Agreement.
3 Employer Duty to Furnish Information
Employer agrees to furnish to ICMA -RC on a timely basis such information as is
necessary for ICMA -RC to carry out its responsibilities as Administrator of the Plan,
including information needed to allocate individual participant accounts to Funds in the
Trust, and information as to the employment status of participants, and participant ages,
addresses, and other identifying information (including tax identification numbers).
ICMA -RC shall be entitled to rely upon the accuracy of any information that is furnished
to it by a responsible official of the Employer or any information relating to an individual
participant or beneficiary that is furnished by such participant or beneficiary, and ICMA-
RC shall not be responsible for any error arising from its reliance on such information.
ICMA -RC will provide account information in reports, statements or accountings.
4 Certain Representations and Warranties
ICMA -RC represents and warrants to Employer that:
(a) ICMA -RC is a non - profit corporation with full power and authority to
enter into this Agreement and to perform its obligations under this
Agreement. The ability of ICMA -RC to serve as investment adviser to the
Trust is dependent upon the continued willingness of the Trust for ICMA-
RC to serve in that capacity.
(b) ICMA -RC is an investment adviser registered as such with the U.S.
Securities and Exchange Commission under the Investment Advisers Act
of 1940, as amended. ICMA -RC Services, LLC (a wholly owned
subsidiary of ICMA -RC) is registered as a broker - dealer with the U.S.
Securities and Exchange Commission ( "SEC ") and is a member in good
standing with the National Association of Securities Dealers ( "NASD ")
and the Securities Investor Protection Corporation ( "SIPC ").
(c) ICMA -RC shall maintain and administer the Plan in compliance with the
requirements for eligible deferred compensation plans under Section 457
of the Internal Revenue Code and other applicable federal law; provided,
3
Plan number 306160
however, that ICMA -RC shall not be responsible for the eligible status of
the Plan in the event that the Employer directs ICMA -RC to administer the
Plan or disburse assets in a manner inconsistent with the requirements of
Section 457 or otherwise causes the Plan not to be carried out in
accordance with its terms. Further, in the event that the Employer uses its
own customized plan document, ICMA -RC shall not be responsible for
the eligible status of the Plan to the extent affected by terms in the
Employer's plan document that differ from those in ICMA -RC's standard
plan document. ICMA -RC shall not perform any service that ICMA -RC,
in its sole judgment, considers might cause ICMA -RC to be treated as a
"fiduciary" of the Plan under applicable law.
Employer represents and warrants to ICMA -RC that:
(d) Employer is organized in the form and manner recited in the opening
paragraph of this Agreement with full power and authority to enter into
and perform its obligations under this Agreement and to act for the Plan
and participants in the manner contemplated in this Agreement. Execution,
delivery, and performance of this Agreement will not conflict with any
law, rule, regulation or contract by which the Employer is bound or to
which it is a party.
(e) Employer understands and agrees that ICMA -RC's sole function under
this Agreement is to act as recordkeeper and to provide administrative,
investment or other services at the direction of Plan participants, the
Employer, its agents or designees in accordance with the terms of this
Agreement. Under the terms of this Agreement, ICMA -RC does not
render investment advice, is not the Plan Administrator or Plan Sponsor as
those terms are defined under applicable federal, state, or local law, and
does not provide legal, tax or accounting advice with respect to the
creation, adoption or operation of the Plan and the Trust.
(f) Employer acknowledges that certain such services to be performed by
ICMA -RC under this Agreement may be performed by an affiliate or
agent of ICMA -RC pursuant to one or more other contractual
arrangements or relationships, and that ICMA -RC reserves the right to
change vendors with which it has contracted to provide services in
connection with this Agreement without prior notice to Employer.
5 Participation in Certain Proceedings
The Employer hereby authorizes ICMA -RC to act as agent, to appear on its behalf, and to
join the Employer as a necessary party in all legal proceedings involving the garnishment
of benefits or the transfer of benefits pursuant to the divorce or separation of participants
in the Employer Plan. Unless Employer notifies ICMA -RC otherwise, Employer consents
to the disbursement by ICMA -RC of benefits that have been garnished or transferred to a
4
Plan number 306160
former spouse, current spouse, or child pursuant to a domestic relations order or child
support order.
6 Compensation and Payment
(a) Plan Administration Fee. The amount to be paid for plan administration
services under this Agreement shall be 0.55% per annum of the amount of
Plan assets invested in the Trust. Such fee shall be computed based on
average daily net Plan assets in the Trust.
(b) Account Maintenance Fee. The annual Account Maintenance Fee for Plan
participants will be waived for Employers who use EZLink for
contribution processing and submit deposits by wire transfer or ACH. In
the event that Employer does not use EZLink for contribution processing
and ACH/wire transfer, the annual Account Maintenance Fee shall be
$36.00 per Plan participant. If applicable, this fee is payable on the first
day of the calendar quarter following establishment and is prorated by
reference to the number of calendar quarters remaining on the day of
payment. The Account Maintenance fee is debited from each Plan
participant's account.
(c) Mutual Fund Services Fee. There is an annual charge of 0.15% assessed
against average daily net Plan assets invested in the Trust's non-
proprietary funds of VantageTrust.
(d) Compensation for Management Services to the Trust; Compensation for
Advisory and other Services to the Vantagepoint Funds. Employer
acknowledges that in addition to amounts payable under this Agreement,
ICMA -RC receives fees from the Trust for investment management
services furnished to the Trust. Employer further acknowledges that
certain wholly owned subsidiaries of ICMA -RC receive compensation for
advisory and other services furnished to the Vantagepoint Funds, which
serve as the underlying portfolios of a number of Funds offered through
the Trust. The fees referred to in this subsection are disclosed in the
Retirement Investment Guide. These fees are not assessed against assets
invested in the Trust's Mutual Fund Series.
(e) Redemption Fees. Redemption fees imposed by outside mutual funds in
which Plan assets are invested are collected and paid to the mutual fund by
ICMA -RC. ICMA -RC remits 100% of redemption fees back to the
specific mutual fund to which redemption fees apply. These redemption
fees and the individual mutual fund's policy with respect to redemption
fees are specified in the prospectus for the individual mutual fund and
referenced in the Retirement Investment Guide.
5
Plan number 306160
(f) Payment Procedures. All payments to ICMA -RC pursuant to this Section
6 shall be paid out of the Plan assets held by the Trust and shall be paid by
the Trust, to the extent not paid by the Employer. The amount of Plan
assets held in the Trust shall be adjusted by the Trust as required to reflect
such payments. In the event that the Employer agrees to pay amounts
owed pursuant to this section 6 directly, any amounts unpaid and
outstanding after 30 days of invoice to the Employer shall be withdrawn
from Plan assets held by the Trust.
The compensation and payment set forth in this section 6 is contingent upon the
Employer's use of ICMA -RC's EZLink system for contribution processing and
submitting contribution funds by ACH or wire transfer on a consistent basis over the
term of this Agreement.
7. Custody
Employer understands that amounts invested in the Trust are to be remitted directly to the
Trust in accordance with instructions provided to Employer by ICMA -RC and are not to
be remitted to ICMA -RC. In the event that any check or wire transfer is incorrectly
labeled or transferred to ICMA -RC, ICMA -RC may return it to Employer with proper
instructions.
8. Indemnification
ICMA -RC shall not be responsible for any acts or omissions of any person with respect
to the Plan or related Trust, other than ICMA -RC in connection with the administration
or operation of the Plan. Employer shall indemnify ICMA -RC against, and hold ICMA-
RC harmless from, any and all loss, damage, penalty, liability, cost, and expense,
including without limitation, reasonable attorney's fees, that may be incurred by, imposed
upon, or asserted against ICMA -RC by reason of any claim, regulatory proceeding, or
litigation arising from any act done or omitted to be done by any individual or person
with respect to the Plan or related Trust, excepting only any and all loss, damage, penalty,
liability, cost or expense resulting from ICMA -RC's negligence, bad faith, or willful
misconduct.
9. Term
This Agreement may be terminated without penalty by either party on sixty days advance
notice in writing to the other.
10. Amendments and Adjustments
(a) This Agreement may not be amended except by written instrument signed by the
parties.
6
Plan number 306160
(b) No failure to exercise and no delay in exercising any right, remedy, power or
privilege hereunder shall operate as a waiver of such right, remedy, power or
privilege.
(c) The parties agree that enhancements may be made to administrative and
operations services under this Agreement. The Employer will be notified of
enhancements through the Employer Bulletin, quarterly statements or special
mailings. Likewise, if there are any reductions in fees, these will be announced
through the Employer Bulletin, quarterly statement or special mailing.
11. Notices
All notices required to be delivered under Section 10 of this Agreement shall be delivered
personally or by registered or certified mail, postage prepaid, return receipt requested, to
(i) Legal Department, ICMA Retirement Corporation, 777 North Capitol Street, N.E.,
Suite 600, Washington, D.C., 20002 -4240; (ii) Employer at the office set forth in the first
paragraph hereof, or to any other address designated by the party to receive the same by
written notice similarly given.
12. Complete Agreement
This Agreement shall constitute the complete and full understanding and sole agreement
between ICMA -RC and Employer relating to the object of this Agreement and correctly
sets forth the complete rights, duties and obligations of each party to the other as of its
date. This Agreement supersedes all written and oral agreements, communications or
negotiations among the parties. Any prior agreements, promises, negotiations or
representations, verbal or otherwise, not expressly set forth in this Agreement are of no
force and effect.
13. Titles
The headings of Sections of this Agreement and the headings for each of the attached
schedules are for convenience only and do not define or limit the contents thereof.
14. Incorporation of Schedules
All Schedules (and any subsequent amendments thereto), attached hereto, and referenced
herein, are hereby incorporated within this Agreement as if set forth fully herein.
15. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the
State of Florida, applicable to contracts made in that jurisdiction without reference to its
conflicts of laws provisions.
7
Plan number 306160
In Witness Whereof, the parties hereto certify that they have read and understand this
Agreement and all Schedules attached hereto and have caused this Agreement to be
executed by their duly authorized officers as of the Inception Date first above written.
CITY OF OKEECHOBEE
Janis E. Kirk, Mayor
Date z%-
Name and Title (Please Print)
INTERNATIONAL CITY /COUNTY MANAGEMENT
ASSOCIATION RETIREMENT CORPORATION
t
By
Angela C. Montez
Corporate Secretary
Please return fully executed contract to:
8
New Business Unit
ICMA -RC
777 North Capitol Street NE
Suite 600
Washington DC 20002 -4240
Plan number 306160
Exhibit A
Administrative Services
The administrative services to be performed by ICMA -RC under this Agreement shall be
as follows:
(a) Participant enrollment services, including providing a welcome package and
enrollment kit containing instructions and notices necessary to implement
the Plan's administration.
(b) Establishment of participant accounts for each employee participating in the
Plan for whom ICMA -RC receives appropriate enrollment forms and
records. ICMA -RC is not responsible for determining if such Plan
participants are eligible under the terms of the Plan.
(c) Allocation in accordance with participant directions received in good
order of individual participant accounts to investment funds offered under
the Trust.
(d) Maintenance of individual accounts for participants reflecting amounts
deferred, income, gain or loss credited, and amounts distributed as
benefits.
(e) Maintenance of records for all participants for whom participant accounts
have been established in paper or electronic format. These files shall include
enrollment instructions, beneficiary designation instructions (to the extent
provided to ICMA -RC) and all other written correspondence and documents
concerning each participant's account, and if applicable, records of any
transaction conducted through the Voice Response Unit ( "VRU "), the
Internet or other electronic means.
(f) Provision of periodic reports to the Employer and participants of the status
of Plan investments and individual accounts.
Communication to participants of information regarding their rights and
elections under the Plan.
(h) Making available Investor Services Representatives through a toll -free
telephone number from 8:30 a.m. to 9:00 p.m. Eastern Time, Monday
through Friday (excluding holidays and days on which the securities
markets or ICMA -RC are closed for business (including emergency
closings), to assist participants.
Making available a toll -free number and access to VantageLine, ICMA-
RC's interactive VRU, and ICMA -RC's web site, to allow participants to
access certain account information and initiate plan transactions at any
time.
(g)
(i)
(i) Distribution of benefits as agent for the Employer in accordance with
terms of the Plan.
9
Plan number 306160
(k) Upon approval by the Employer that a domestic relations order is an
acceptable qualified domestic relations order under the terms of the Plan,
ICMA -RC will establish a separate account record for the alternate payee
and provide for the investment and distribution of assets held thereunder.
Loans may be made available on the terms specified in the Loan Guidelines,
if loans are adopted by the Employer.
Online Advice may be made available through a third party vendor on the
terms specified on ICMA -RC's website.
10
/7\<\
ICMA
Building Retirement Security
NOTICE OF PLAN ACCEPTANCE
May 4, 2007
India Riedel
55 SE 3rd Avenue
Okeechobee, FL 34974
RE: City of Okeechobee
ICMA RC Account Number: 306160
457 Deferred Compensation Plan
Dear Ms. Riedel:
This letter is to inform you that ICMA RC has formally accepted the City of
Okeechobee. At this time, eligible employees may begin enrolling and
contributing to the plan. Each employee who enrolls in the plan will be identified
by the employer account number listed above and their Social Security Number.
Please refer to "Making Sound Investment Decisions ", the ICMA RC Retirement
Investment Guide for information about your plan's funds and your role as a
member of the Vantage Trust Company Trust. If you have questions, please
contact our Employer Services staff at 1- 800 - 326 -7272.
Sincerely,
Phil Outlaw
New Business Unit Analyst
ICMA RC
Vantagepoint securities are distributed by ICMA -RC Services, LLC, a broker - dealer affiliate of ICMA -RC, member NASD /SIPC.
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0511312011 14:03 Okeechobee City Hall
Loan Guideliner Agreement
AX )863 7631686 P.002
Name ofPlan (please state theEnxployer 's complete name, indudingstate):
City of Okeechobee
Man Types 0 401(a) Money Purchase Plan 0 40I Prof r- $haring Plan 457 Deferred Compensation Plan
1CMA -RC Plan Number: 3 0 616 0
1 Purpose
The purpose of these guidelines is to establish the terms and conditions under which the Employer will grant loans to participants. This is
the only official Loan Provision Document of the above named Plan.
11. Eligibility
Loans are available to all active employees. Loans will nor be granted to participants who have an existing loan in default.
Lows will be pro -raced among all the funds in which the participant is invested at the time the loan is made.
For 401 plans only:
Loans are available from the following sources: [select one or both)
O Employer Contribution Account (vested balances only)
O Participant Contribution Accounts (pre - and post -rax, if applicable, including Employee Mandatory, Employee Voluntary,
Employer Rollover, and Portable Benefits Accounts, but excluding the Deductible Employee Contribution /Qualified Volun-
tary Employee Contribution Account)
For Roth 401(k) plans only:
A participant's Designated Roth Account balance can be used to secure a participant loan.
Designated Roth Account balances [select one)
0 will not (default option) be available as 2 source for loans under the Plan.
O will be available as a source for loans under the Plan. (Note: Using the Roth source for loans may have negative tax con-
sequences for participants.)
rot all plan types:
Loans are available for the following purposes: [select one]
All purposes
O Loans shall only be granted in the event of a participant's hardship or for the purpose of enabling a participant to meet
certain specified financial situations. The employer shall approve the participant's loan application after determining, based
on all relevant facts and circumstances, char the amount of the loan is nor in excess of the amount required to relieve the fi-
nancial need. Por this purpose, financial need shall include, but not be limited to, unreimbursed medical expenses of the par-
ticipant or members of the participant's immediate family, establishing or subsrantially rehabilitating the principal residence
of the participant, or paying For a college education (including graduate studies) For the participant or his/her dependents.
3 RECEIVED MAY 13 2011
05113/2011 14:03 Okeechobee City Hall
ICMA -RC
(FAX)863 7631686 P.003
111 Frequency of loans (select one)
Participants may receive one loan per calendar year. Moreover, participants,nnay have only one (1) outstanding loan at a time.
0 Participants may receive one loan per calendar year. Moreover, no participant may have more than five (5) loans outstanding
at one time.
IV. Loan amount
The minimum loan amount is $1,000.
The maximum amount of all loans to the participant from the plan and all ocher plans sponsored by the Employer than are qualified
employer plans under section 72(p)(4) of the Code is the lesser of
(1) $50,000, reduced by the highest outsranding balance of all loans from any 401 or 457 plans for that participant during
the one -year period ending on the day before the date a loan is to be made, or
(2) one half of the participant's vested account balance, reduced by the current outstanding balance of all 401 and 457 loans
from all plans for that participant.
If a participant has any loans outstanding at the time a new loan is requested, the new loan will be limited to the maximum amount calcu-
lated above reduced by the total of the outstanding loans.
A loan cannot be issued for more rhan the above amount. The participant's requested loan amount is subject co downward adjustment
without notice due to market fluctuation between thc time of application and the time the loan is made.
V. Length of loan
A loan must be repaid in substantially equal installments of principal and interest, at least monthly, over a period that does not
exceed five (5) years.
Loans for a principal residence must be repaid in substantially equal installments of principal and interest, at
least monthly, over a period that does not exceed 1 0 (state number of years] years (maximum 30 years).
Vi. Loan repayment process
Loan repayments for active employees must be through (choose one):
O Payroll deduction only.
PL642(2) - 2
• 'ACH debit only.
PL642(2) - 0
O Employee may choose either payroll deduction or ACH debit.
PL642(2) - 1
If payroll deduction repayment is allowed, and the employee wishes to use this method, the employee must notify the Employer
so that thc Employer can ensure that =payment will begin as soon as practicable on a date determined by the Employer's payroll
cycle. Failure to begin payroll deduction in a timely way could lead to the employee's loan entering delinquency status. Payroll
deduction should begin within two payroll cycles following the employee's receipt of the loan.
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Loan Guidelines Agreement
AX)863 7631686 P.004
Repayments through payroll deduction will be sent via check or wire by the Employer to ICMA -RC on the following cycle
(choose one):
'Weekly (52 per year)
l7 Bi- weekly (26 per year)
l7 Semi - monthly (24 per year)
J Monthly (I2 per year)
If ACH debit repayment is allowed, debits from the employee's designated bank account will begin approximately one month fol-
lowing the date the employee's signed ACH authorization form is received and processed by ICMA -RC, or in the case of online
loans, approximately one month following the date the loan check has been cleared for payment. Debits will normally be made on
a monthly basis.
Loans outstanding for former employees or employees on a leave of absence must be repaid on the same schedule as if payroll
deductions wcrc still being made unless they rcamortize their loans and establish a new repayment schedule that provides that sub-
stantially equal payments are made at least monthly over the remaining period of the loan.
Loan payments, including loan payments from former employees, are allocated to the participant's current election of investment
options on file with ICMA -RC.
The participant may pay off all or a portion of the principal and interest early without penalty or additional fee. Extra payments
are applied forward to both principal and interest as specified in the original repayment schedule, unless the additional payment is
for the balance due.
VII. Loan interest rate
The rate of interest for loans of five (5) years or less will be based on prime plus 0.5%.
The rate of interest for loans for a principal residence will be based on the FHA/VA rate.
Interest rates are determined on the last business day of the month preceding the month the loan is disbursed. The interest rate is
locked in at the time a loan is approved and remains constant throughout the life of the loan.
The prime interest rate is determined on the last business day of each month using www.nfsn.com as the source. The FHA/VA
interest rate is also determined on the lase business day of each month using www/bankofamerica.com as the source.
Loan interest rates for new loans taken in different months may fluctuate upward or downward monthly, depending on the move-
ment of the prime and FHA/VA interest rates.
The employer may modify the manner in which loan interest rates will be determined, but only with respect to future loans.
V111. Loan application procedure
Loans must be requested using the following method (check one):
1V Online onlys All loans must be requested online by employees through ICMA -RC's Account Access sire at
www.icmarc.org, with Employer pre - authorization as outlined in italics below.
If an employee is married at the time of application, and spousal consent is required by the Plan for the loan, the employ-
ee's spouse must consent, in writing, to the loan and the consent must be witnessed by a plan representative or notary
public. Such consent must be received in writing by ICMA -RC no more than ninety (90) days before the loan request is
submitted through Account Access.
The promissory note, Truth -in- lending rescission notice and disclosure statement are presented ro the employee online
through Account Access ar the time the employee submits the loan request. The employee confirms receipt and acceptance
of these documents by clicking on the affirmative buttons on the Account Access program.
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ICMA -RC
OAX)5637631686 P.005
The employer hereby authorizes all futun loans requested through the online process via Account Access, as well as any request
that employees submit on paper firms, pending review of the application by ICMA RC Notice of loan issuance will be provided
to the Employer via reports posted on the F.7T.ink sine
The loan amount will generally be redeemed from the employee's account on the same day u the employee's successful
submission of the loan request through Account Access, if it is submitted prior to 4 :00 p.m. ET on a business day. If not,
the loan amount will be redeemed on she next business day following submission. The loan check is generally issued on
the next business day following redemption, and will be mailed directly to the employee. The employee's presentment of
the loan check for payment constitutes an acknowledgment that the employee has received and read the loan disclosure
information provided by ICMA RC and agrees to thc terms therein.
Loan repayment will begin as soon as practicable following the employee's presentment of thc loan check for payment,
I7 Online and through Direct Loan application: All loans must be requested either online by employees through
ICMA -RC's .Account Access site at wwwicmarc.org, or through the Direct Loan application, both of which require pre -
authorization by the Employer as outlined in italics below.
If an employee is married at the time of application, and spousal consent is required by the Plan for the loan, the employ-
ee's spouse must consent, in writing, to the loan and the consent must be witnessed by a plan representative or notary
public. Such consent must be received in writing by ICMA -RC no more than ninety (90) days before the loan request is
submitted through Account Access. In the case of the Direct Loan Application, spousal consent should be sent along with
the application.
The promissory note, truth -in- lending rescission notice and disclosure statement are mailed to the employee along with
the issued loan check. The employee confirms receipt and acceptance of these documents and terms at the time the en-
dorsed check is presented for payment.
The Employer hereby authorizes all fixture loans requested through the online process via Account Access, as well as any rrquens
that employees submit on paper farms, pending review of the application by ICMA -RC Notice of loan issuance will be provided
to the Employer via reports posted on the F.ZTink site.
The loan amount will generally be redeemed from the employee's account on the same day as either ICMA -RC's receipt
of a loan application (complete and in good order), or the employee's successful submission of the loan request through
Account Access, if it is submitted prior to 4:00 p.m. ET on a business day. If not, the loan amount will be redeemed on the
next business day following submission. The loan check is generally issued on the next business day following redemption,
and will be mailed directly to the employee. The employee's presentment of the loan check for payment constitutes an ac-
knowledgment that the employee has received and read the loan disclosure information provided by ICMA -RC and agrees
to the terms therein.
Loan repayment will begin as soon as practicable following the employee's presentment of the loan check for payment.
[� Direct Loan application only' All loans must be requested through the Direct Loan application, which requires pre-
authorization by the Employer as outlined in italics below.
If an employee is married at the time of application, and spousal consent is required by the Plan for the loan, the employ-
ees spouse must consent, in writing, co the loan and the consent must be witnessed by a plan representative or notary
public. Such consent must be received in writing by ICMA -RC along with the Direct Loan Application.
The promissory note, truth -in- lending rescission notice and disclosure statement are mailed to the employee along with
thc issued loan check. The employee confirms receipt and acceptance of these documents at the time the endorsed check is
presented for payment.
The employer hereby authorizes all future loans requested on paper form, pending review of the application by IC,111A RC. Notice
of loan issuance will be provided to the Employer via reports posted on the E.ZLink site.
The loan amount will generally be redeemed from the employee's account on the same day as ICMA -RC's receipt of a loan
application (complete and in good order).
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IX.
1F11863 7631686 P.006
Loan Guidelines Agreement
The loan check will generally be issued from the employee's account on the next business day following redemption. The
loan check will bc mailed directly to the employee. The employee's presentment of the loan check for payment constitutes
an acknowledgment that the employee has received and read the loan disclosure information provided by ICMA -RC and
agrees to the terms therein.
Loan repayment will begin as soon as practicable following the employee's presentment of the loan check for payment.
CI Loan application through the Employer: All loans must be requested in writing on an application approved by the plan
administrator. The application must bc signed by the participant. The Employer must review and approve each partici-
pant's application.
The participant will be required to sign a promissory note evidencing the loan and a disclosure statement that includes
an amortization schedule prior to receiving a loan check. Loan checks will generally be issued on the next business day
following IC IA. -RC's receipt of a complete loan application. The loan check, promissory note, disclosure statement and
truth -in- lending rescission notice will be sent to the employer, who will obtain the necessary signatures and deliver the
check to the participant. All executed documents must be returned to ICMA -RC within 10 calendar days from the date
the check is issued.
Security /Collateral
That portion oFa participant's account balance that is equal to the amount of the loan is used as collateral for chc loan. The col-
lateral amount may not exceed 50 percent of the participant's account balance at the time the loan is taken. Only the portion of the
account - balance that corresponds to the amount of the outstanding loan balance is wed as collateral.
X. Acceleration [select one]
l7 All loans are due and payable in full upon separation from service,
RI All loans are due and payable when a partidpant receives a distribution of all of his/her account balance after separa-
tion from service. The amount of the outstanding loan balance will be reported as a distribution in addition to the
amount of cash distributed from the plan.
Q All loans are due and payable when a participant receives a distribution of part of his/her account balance after separa-
don from service. The amount of the outstanding loan balance will be reported as a distribution in addition to the
amount of cash distributed from the plan.
XI. Reamortiration
Any outstanding loan may be reamorcized. Reamorcization means changing the terms of a loan, such as length of repayment peri-
od, interest rate, and frequency of repayments. .A loan may not be reamortized to extend the length of the Loan repayment period to
more than five (5) years from the date the loan was originally made, or in the case of a loan to secure a principal residence, beyond
the number of years specified by the employer in Section V above.
A participant must request the reamortization of a loan in writing on a reamortization application acceptable co the plan adminis-
trator. Upon processing the request, a new disclosure statement will be sent to the employer for endorsement by the participant and
approval by the employer, The executed disdosurc statement must be returned to the plan administrator within 10 calendar days
from the dare it is signed. The new disclosure statement is considered an amendment to the original promissory note, therefore a
new promissory note will not bc required.
A rcamortizadon will not be considered a new loan for purposes of calculating the number of loans outstanding or the one loan per
calendar year limit.
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05/13/2011 14:04 Okeechobee City Hall
ICMA -RC
TAl0863 7631686 P.007
XII. Refinancing existing loans
If a participant has one outstanding loan, that loan may be refinanced. If a participant has more than one outstanding loan, no
loans may be refinanced. Refinancing means concurrently repaying an existing loan and borrowing an additional amount through
a new loan. Refinancing includes any situation in which one loan replaces another loan and the term of the replacement loan does
not exceed the latest permissable term of the replaced loan.
In order to refinance an existing loan, a participant must request this in writing on an application approved by the plan administra-
tor. Such request must be made at a time when the participant is eligible to obtain a loan as defined by the employer in Section XIX
above. The amount of the additional loan amount requested for the purpose of refinancing is subject to the loan limits specified in
Section IV above.
Because a refinancing is considered a new loan, only active employees may refinance an outstanding loan.
XIII. Reduction of Loan
If a participant dies prior to full repayment of the outstanding loan(s), the outstanding loan balance(s) will be deducted from the
account prior to distribution to the beneficiary(ies). The unpaid loan amount is a taxable distribution and may be subject to early
withdrawal penalties. The participant's estate is responsible for taxes or penalties on the unpaid loan amount, if any. A beneficiary
is responsible for taxes due on the amount he or she receives: A Form 1099 will be issued to both the beneficiary and the estate for
these purposes.
XIV. Deemed Distribution
Loan repayments must be made in accordance with the plan document, plan loan guidelines, and as reflected in the promissory
note signed by the participant. If a scheduled payment is not paid within 30, 60, and/or 90 days of the due date, a notice will be
sent to both the employee and the employer.
A loan will be deemed distributed when a scheduled payment is still unpaid at the end of the calendar quarter following the calen-
dar quarter in which the payment was due, If the total amount of any delinquent payment is not received by ICMA -RC by the end
of the calendar quarter following the calendar quarter in which they payment was due, the loan is considered a taxable distribution,
and the principal balance, in addition to any accrued interest, is reported as a distribution to the XRS. However, no money is paid
in this distribution, because the participant already has the loan proceeds.
The loan is deemed distributed for tax purposes, but it is not an actual distribution and therefore remains an asset of the partici-
panr's account. Interest continues to accrue. The outstanding loan balance and accrued interest are reported on the participant's
account statement.
Repayment of a deemed distribution will not change or reverse the taxable event.
The loan continues to be outstanding, and to accrue interest, until it is repaid or offset using the participant's account balance. An
offset can occur only if the participant is eligible to receive a distribution from the plan as outlined in the plan document.
Participants are required to repay any outstanding loan which has been deemed distributed before they can be eligible for a new
loan. The deemed distribution and any interest accrued since the date it became a taxable event is taken into account when deter-
mining the maximum amount available for a new loan. New loans must be repaid through payroll deduction.
8
05113/2011 14:05 Okeechobee City Hall TAX)863 7631686 P.008
.Loan Guidelines Agreement
The employer is obligated by federal regulation to comply with the loan guideline requirements applicable to participant loans, and
to ensure against deemed distribution by monitoring loan repayments, regardless of the method of repayment, and by advising em-
ployees if loans are in danger of being deemed distributed. The tax- qualified status or eligibility of the entire plan may be revoked
in casts of frequent repayment delinquency or deemed distribution.
XV. Fees
Fees may be charged for various services associated with the application for and issuance of loans. All applicable fees will be debited
from the participant's account balance and /or from the participant's loan repayments prior m crediting the repayment of principal
and interest to the participant's account. A schedule of fees applicable to this plan is specified in ICMA -RC's current publication of
Making Sound Investment Decisions: A Retirement Investment Guide.
XVI. Other
The employer has the right to set other terms and conditions as it deems necessary for loans from the plan in order to comply with
any legal requirements. All terms and conditions will be administered in a uniform and non - discriminatory manner.
In Witness Whereof, the employer hereby caused these Guidelines to be executed this 13
of May
EMPLOYER
By: India Riedel
,2011
Tide: c e 40, e c t o r
Attest: ��
9
Accep
By:
Title:
Attest:
CMA RETIREMENT CO • r RATION
day
RECEIVED MAY 13 2011