Agenda Item 7CAGENDA ITEM # X
MAY 13, 2013
CITY OF ATLANTIC BEACH
CITY COMMISSIONER MEETING
STAFF REPORT
AGENDA ITEM: I" Reading — Ordinance for Defined Contribution Plan
SUBMITTED BY: Susan Danhauser, Human Resources Director
DATE: April 12, 2013
STRATEGIC PLAN OBJ: Goal #1 Pension and Employee Benefits, 2012/2013 Goals
BACKGROUND: On April 8, 2013, the Commission approved that the general pension plan would
be closed to non - vested and new members and all non - vested and new general
employees would be eligible to participate in a Defined Contribution Plan. The
Defined Contribution Plan is as follows:
(a.) The city will match contributions made by the eligible employee in their 457
account up to six (6) percent of their compensation during the first ten (10)
years of service. This match provided by the city will be made to the
member's 401 Profit Sharing Plan.
(b.) After ten (10) years of service, the City will contribute an additional four (4)
percent of the employee's compensation to the member's 401 Profit Sharing
Plan. Matching is not required for the additional four (4) percent
contribution.
(c.) Each member shall immediately be 100 percent vested in employee
contributions and rollover contributions in their 457 Plan.
(d.) Each member shall be 100 percent vested in employer contributions made to
their 401 Profit Sharing Plan at the completion of five years of employment.
(e.) A non - vested member shall forfeit the portion of accumulated employer
contributions upon termination of employment.
(£) Non - vested funds in the 401 Profit Sharing Plan will be managed by the City
Manager or his designee in a fixed asset account. Once these funds are
vested, the employee may select investment options from those available
through ICMA.
BUDGET: The projected conversion amount to the non - vested employees' 401 Profit
Sharing account is — $68,000 and has been included in a budget amendment.
ATTACHMENT: Ordinance No. 58 -13 -35
The ordinance refers to "Exhibit A" — the Plan Document for the 401 Profit
Sharing Plan. It is expected to be complete this week and will be
forwarded via email.
RECOMMENDATION: Approve Ordinance No. 58 -13 -35 on first reading.
REVIEWED BY CITY
AGENDA ITEM # 7C
MAY 13, 2013
ORDINANCE NO. 58 -13 -35
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH,
ESTABLISHING CHAPTER 2, ADMINISTRATION,
ARTICLE VI, EMPLOYEE BENEFITS, DIVISION 5, CITY
OF ATLANTIC BEACH DC PLAN.
WHEREAS, the City of Atlantic Beach General Employees are presently provided
pension and certain other benefits under Ordinances of the City of Atlantic Beach and;
WHEREAS, the City Commission wishes to establish a Profit Sharing Plan. This Plan
shall be maintained as a governmental profit sharing plan under the provisions of Section 401 of
the United States Internal Revenue Code.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF ATLANTIC BEACH, FLORIDA;
SECTION 1: That Chapter 2, Administration, Article VI, Employee Benefits, Division
5, City of Atlantic Beach DC Plan of the Code of Ordinances of the City of Atlantic Beach, is
hereby established effective April 1, 2013 as set forth in the document designated CITY OF
ATLANTIC BEACH DC PLAN as provided in Exhibit A, attached hereto and made a part
hereof.
SECTION 2: Specific authority is hereby granted to codify and incorporate this
Ordinance in the existing Code of Ordinances of the City of Atlantic Beach.
SECTION 3: All Ordinances or parts of Ordinances in conflict herewith be and the
same are hereby repealed.
SECTION 4: If any section, subsection, sentence, clause, phrase of this ordinance, or
the particular application thereof shall be held invalid by any court, administrative agency, or
other body with appropriate jurisdiction, the remaining section, subsection, sentences, clauses, or
phrases under application shall not be affected thereby.
SECTION 5: That this Ordinance shall become effective upon its adoption.
PASSED ON FIRST READING, this day of
AGENDA ITEM # 7C
MAY 13, 2013
2013.
PASSED AND ADOPTED ON SECOND AND FINAL READING, this day
of 2013.
MIKE BORNO
Mayor
ATTEST:
DONNA L. BARTLE, CMC
City Clerk
Approved as to form:
ALAN C. JENSEN, ESQUIRE
City Attorney