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HomeMy WebLinkAboutEstablishing Deferred Compensation Plan ORDINANCE No. 7451-85 Passed by the Common Council of the City of South Bend, Indiana May 13, rq 85 Attest: � i / am`--�-a-. City Clerk IRENE K. GAMMON Attest: ?' , ��� / d� r — - '�- � President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana May 14 , i 85 City Clerk IRENE K. GAMMON Approved and signed by me / // ig cri , ORDINANCE NO. 7451-85 AN ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA, ESTABLISHING DEFERRED COMPENSATION PLAN (S) STATEMENT OF PURPOSE AND INTENT Indiana Code Sections 5-10-1.1-1 through 5-10-1.1-8 permits cities to establish deferred compensation plans for their public employees. Each plan must be specifically selected and approved by ordinance. The Common Council believes that deferred compensation plans would allow certain tax benefits to accrue to City employees which would act as incentives for them to voluntarily set aside and invest portions of their current income for future financial security and to supplement their retirement benefits. The Council believes that qualified City employees should have the option to participate in deferred compensation plans, and this ordinance would permit such plans to be established. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana, as follows : SECTION I. The Common Council of the City of South Bend, Indiana, hereby establishes the City of South Bend Deferred Compensation Plan for the voluntary participation of all eligible City employees and elected officials. SECTION II. The City of South Bend shall contract with The Public Employees Benefit Service Corporation (PEBSCO) to be the exclusive Servicing Manager and Enroller and will utilize their plan information and investment options. A contract setting forth the particulars of this plan and investment options shall be approved by separate Resolution of the Common Council. SECTION III. The Council hereby appoints the City Controller to be the Administrator of the Plan, and authorizes him to make deductions of the compensation of employees, who voluntarily elect to participate, and to make all other necessary arrangements to implement the Plan. SECTION IV. It is the City' s understanding that except for incidental expenses of collecting the employees ' deferrals and other minor administrative matters, there will be no cost or contribution by the City to this Deferred Compensation Plan. SECTION V. This Ordinance shall be in full force and effect from and after its passage by the Council, approval by the Mayor, and legal publication. Member of th Common Council flnmmtttnn Erpnrt can hie Ulunwwn (lounril of the (ERR of*nuthi Eruct: Your Committee of the Whole to whom was referred BILL NO. 10-85 A BILL OF THE CITY OF SOUTH BEND, INDIANA, ESTABLISHING DEFERRED COMPENSATION PLAN (S) . Respectfully report that they have examined the matter and that in their opinion This bill should be recommended to the Council favorable , as amended: by substitution of a new bill Joseph T. Serge Chairman FREE PRESS GBe39.0 PUBLISHING CO. ■ ar s ,,� 1x ®o CITY of SOUTH BEND ® EnOE COMMON COUNCIL 0W ".:a ® \��}` x�}s° 441 COUNTY-CITY BUILDING SOUTH BEND,INDIANA 46601 BEVERLIE J.BECK President Ares 219 289.9321 EUGENIA BRABOY February 20 , 19 8 5 Vice-President JOSEPH T.SERGE Chairman, Committee of the Whole Members of the Common Council Council Chambers 4th Floor County-City Building South Bend, Indiana 46601 JOSEPH T.SERGE First District EUGENIA BRABOY Second District Dear Councilmembers: BEVERLIE J.BECK Third District ANN B.PUZZELLO The attached ordinance would establish a Deferred Fourth District ROBERT G.TAYLOR Compensation Plan for City employees and elected public Fifth District officials for the City of South Bend. THOMAS ZAKRZEWSKt Sixth District You will recall that late last year a representative BEVAERLYaCRONE of a company offering such plans reviewed his program with AL B.PASZEK the. Common Council. Since that time several other companies At Large have contacted the City regarding such programs. JOHN VOORDE At Large You will note that Section II. does not specifically K.CEKANSKI-FARRAND designate the company which the City would enter a contractu- Council Attorney ral agreement-with to carry out the program. It is my hope that this bill would be sent to the Personnel and Finance Committee for review of all proposals submitted to the City, and to be set down for public hearing on March 25th. I look forward to discussing this with you further.- Thank. you. Sincerely, Beverlie J. Beck President