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: ?'
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— - '�- � 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
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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
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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.
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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