RES 81140 - Laserfiche WebLink

SECTION 7. 6.2 The employer shall establish a deferred compensation fund to whioh all deferred compensation shall be credited at such times as the compensation would have been payable to individua] employees if not a participant of the Plan. Separate book accounts will be established for each employee participant which will show all amounts of deferred compen- sation and earnings/interest on investments. Each book account will be'valued at least annually on a method as outlined in Section 6.3. 6.3 The employer will invest amounts of deferred compensation in interest time deposits or savings accounts with a savings and loan company or banking institution, whichever in the employer's sole judgment will best achieve the Plan objectives. All interest earning will be credited to the participant's book account when declared by the institution. Annual valuation of participant account's and plan assets will include all interest earned, whether paid or accrued. 6.4 The employer may, but is not required to, invest deferred compenstion monthly in the investment vehicle provided for in this Plan. All amounts of deferred compensation, whether or not invested by the employer, shall at all times be and remain assets of the employer. Any and all interest or other income payable on any of the employer's investments of deferred compensation also shall be an asset of the employer subject to the general creditors of the employer only. 6.5 Neither this Plan nor any Participation Agreement nor any book account shall be deemed to create a.trust or custodial account on behalf of or for the benefit of any participant of the Plan or his beneficiaries. No participant of the Plan or his beneficiaries shall have, by reason of the Plan, Participation Agreement, or book account, any secured or preferred interest in or to any assets of the employer. The employer shall have only a contractual obligation to pay the benefits due the participant under the Plan. DISTRIBUTION OF BENEFITS: The Employer shall pay to the Participant, or to his Beneficiary if applicable, the amount in such Participant's IDC Account as of the monthend following the Participant's termination, retirement, total disability or death. Distribution of Benefits under the Plan will be made, or if in installments, shall commence not later than sixty (60) days after notice to the City Manager of the occurence of the events or birthday described in Section 7 unless otherwise specifically provided in the Participation Agreement. All distributions shall be subject to any State or Pederal taxes required to be withheld. Payment shall be made in accordance with the election made in the Participation Agreement, except in the event of Hardship described in Section 7.3. -4-