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ORDINANCE NO. 4 2 7 5
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON,
ADOPTING THE STATE OF WASHINGTON DEFERRED COMPENSATION PLAN AS A
PLAN AVAILABLE TO THE EMPLOYEES OF THE CITY OF AUBURN.
WHEREAS, the City of Auburn has established a deferred compensation plan
for its employees pursuant to Ordinance No. 3644 passed by the City Council on
June 15, 1981; and
WHEREAS, the City has made available to the employees a choice of two
deferred compensation plans, one administered by Great -West Life and another
administered by ICMA Retirement Corporation; and
WHEREAS, RCW 41.04.250 permits counties, municipalities and other
political subdivisions to participate in the State of Washington Employee's
Deferred Compensation Plan; and
WHEREAS, the City of Auburn has reviewed the State plan and desires to
make the plan available to its employees in addition to the other two plans;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON DO
ORDAIN AS FOLLOWS:
Section 1. The City of Auburn hereby adopts and makes available to its
employees at their option the deferred compensation plan known as the State of
Washington Employee's Deferred Compensation Plan, attached hereto as Exhibit A
and which is administered by the Committee for Deferred Compensation in
accordance with RCW 41.04.250.
Section 2. The City of Auburn hereby adopts Resolution No. 1835 which is
required to be signed by the State of Washington Committee for Deferred
Compensation to allow the City's participation in the State's Employee
Deferred Compensation Plan. The Resolution outlines the authority of the plan
and the obligations of the City for membership in the plan.
Section 3. The City of Auburn Finance Director shall be the coordinator
for this program and shall receive necessary reports, notices and information
---------------------
Ordinance No. 4275
Page One
3/8/88
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32 1
from the State of Washington Deferred Compensation Plan and shall act on
behalf of the City of Auburn, under the program. Administrative duties
to carry out the plan may be assigned to the appropriate departments.
Section 4. The Mayor is hereby authorized to implement such administra-
tive procedures as may be necessary to carry out the directions of this
legislation.
Section 5. This Ordinance shall take effect and be in force five (5) days
from and after its passage, approval and publication, as provided by law.
ATTEST:
W
APPROVED AS TO FORM:
INTRODUCED:
MARCH
21,
1988
PASSED:
MARCH
21,
1988
APPROVED: MARCH 21, 1988
/L'e004
A VO R
City Attorney
PUBLISHED: MARCH 27, 1988
---------------------
Ordinance No. 4275
Page Two
3/8/88
01a:g.:A:l_1mD.
*LTA IN MI'Ll WA 910'
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STATE OF WASHINGTON
COMMITTEE FOR DEFERRED COMPENSATION
1400 Evergreen Park Drive S.W., FX-11 • Olympia, Washington 98504 • (206) 753-3096 • (SCAN) 234-3096
The purpose of this letter is to invite your agency to become a
participant in the Washington State Employee's Deferred Compensation
Plan. Such participation by counties, municipalities and other
political sub -divisions of the State is permitted by RCW 41-04-250.
(See reverse side).
Even if you currently have a tax sheltered plan for your employees,
you may find the Washington State Employee's Deferred Compensation
Plan beneficial to -your employees because of the high net yield
earnings obtainable in this Plan.
Sincerely,
George Masten
Chairperson
U_
RCW 41-04-250
41.04.250 Deferred compensation plans authorized for public employees ---
Types of investments. "Employee" as used in this section and RCW 41.04.260
includes all full-time, part-time and career seasonal. employees of the
state, a county, a municipality, or other political subdivision of the
state, whether or not covered by civil service; elected and appointed
officials of the executive branch of the government, including full-time
members of boards, commissions, or committees; justices of the supreme
court and judges of the court of appeals and of the superior and district
courts; and members of the state legislature or of the legislative authority
of any county, city, or town.
The state, through the Committee For Deferred Compensation created in
RCW 41.04.260, and any county, municipality, or other political subdivision
of the state acting through its principal supervising official or
governing body is authorized to contract with an employee to defer a
portion of that employee's income, which deferred portion shall in no
event exceed the amount allowable under 26 U.S.C. Sec. 457, and deposit
or invest such deferred portion in a credit union, savings and loan
association, bank, or mutual savings bank or purchase life insurance,
shares of an investment company, or fixed and/or variable annuity contracts
from any insurance company or any investment company licensed to contract
business in this state. The Committee can provide such plans as it deems
are in the interests of state employees. In addition to the types of
investments described in this section, the Committee may invest the
deferred portion of an employee's income, without limitation as to
amount, in any of the class of investments described in RCW 43.84.150 as
in effect on January 1, 1981. Any income deferred under such a plan
shall continue to be included as regular compensation, for the purpose
of computing the state or local retirement and pension benefits earned
by an employee.
Coverage of an employee under a deferred compensation plan under this
section shall not render such employee ineligible for simultaneous
membership and participation in any pension system for public employees.
Y1 vY GJ.J 1.i IUItVILiu a1 1CL11 ClIIC I I L dLL.UUIIL PI dI1J dULII•U1.1 GCU.
(150)In addition to its other powers prescribed under this chapter,
trie•co;TLmIttee. for deferred compensation is authorized to offer to
s�:ate employees one or more individual retirement account plans
-stablished under applicable state or federal law, (@59) (@60) [1962
41.04.260 Committee for deferred compensation—Created—
AembershiD—Travel expenses —Fiduciary duties —Deferred compensation
revolving fund, investment —Annual report. (@50)(1) There is hereby
created a committee for deferred comoensation to be composed of five =_
Members appointed by the governor, one of whom shall be a
representative of an employee association or union certified as an
exclusive representative of at least one bargaining unit of classified
emoloyees, one who shall be a representative of either a credit union,
savings and loan association, mutual savings bank or bank, one who
oessesses expertise in the area of insurance or investment of public
funds, one who shall be the state attorney general or his designee,
and one additional member selected by the governor. The committee
shall serve without compensation but shall receive travel expenses as
provided for in RCW 43.03.050 and 43.03.060 as now existing or
hereafter amended.
(2) The deferred compensation revolving fund is hereby created
in the state treasury. All expenses of the committee including
staffing and administrative expenses shall be paid out of the deferred
compensation revolving fund.
The amount of compensation deferred by emoloyees under
agreements entered into under the authority contained in RCW 41.04.250
shall be oaid into the revolving fund and shall be sufficient to cover
costs of administration and staffing in addition to such other amounts
as determined by this committee. The revolving fund shall be used to
carry out the uuroes.es of RCW 41.04.250. All eligible state emoloyees
shall be given the oDDortunity to participate in agreements entered
into by the committee under RCW 41.04.250. State agencies shall
cooperate with the committee in providing employees -with the
opportunity to participate. Any county, municipality, or other
subdivision of the state may elect to participate in any agreements
en=ereC into by the committee uncer RCW 41.04.250, including the
making of payments therefrom to the employees participating in a
deferred comoensation plan upon their seoaration from state or other
oualifyina service. Accordingly, the revolving fund shall be
considered to be a public pension or retirement fund within the
Leaning of Article XXIX, section 1 of the state Constitution, for the ;
puroose of determining eligible investments and deposits of the moneys
therein. All moneys in the revolving fund, all property and rights
purchased therewith, and all income attributable thereto, shall remain
(until made available to the participating employee or other
-,neficiary) solely the Money, property, and rights of the state and
participating counties, municipalities and subdivisions (without being
restric.ed to the provision of benefits under the plan) subject only
to the claims of the state's and participating jurisdictions' general
creditors. Participating jurisdictions shall each retain property
rights separately.
�].04.250
41.04.250 Deferred compensation plans authorized for public
employees—, Types of investments. (@50)"Employee" as used in this
section and RCW 41.04.260 includes all full-time, part-time and career
seasonal employees of the state, a county, a municipality, or other
political subdivision of the state, whether or not covered by civil
service; elected and appointed officials of the executive branch of
the government, including full-time members of boards, commissions, or
committees; justices of the supreme court and judges of the court of
appeals and of the superior and district courts; and members of the
state legislature or of the legislative authority of any county, city,
or town.
The state, through the committee for deferred compensation
created in RCW 41.04.260, and any county, municipality, or other
ooliticai subdivision of the state acting through its principal
suaervisina official or governing body is authorized to contract with
an employee to defer a portion of that empiovee's income, which
deferred portion shall in no event exceed the amount allowable under
26 U.S.C. Sec. 457, and deposit or invest such deferred portion in a
credit union, savings and loan association, bank, or mutual savings
bank or purchase life insurance, shares of an investment company, or
fixed and/or variable annuity contracts from any insurance company or
any investment company licensed to contract business in this state.
The committee can provide such plans as it deems are in the interests
of state emplovees. In addition to the types of investments described
in this section, the committee may invest the deferred portion of an
employee's income, without limitation as to amount, in any of the
class of investments described in RCW 43.84.150 as in effect on
January 1, 1981. Any income deferred under such a plan shall continue
to be included as regular compensation, for the purpose of computing
the state or local retirement and pension benefits earned by any
emolov_ee.
Coverage of an employee under a deferred compensation plan
under this section shall not render such employee ineligible for
simultaneous membership and participation in any pension system for
oubllc employees. (@59) (@60) [1981 c 256 5 2; 1975 1st ex.s. c 274 5
2, 1973 1st ex.s. c 99 5 1; 1972 ex.s. c 19 5 1; 1971 ex.s. c 264 §
1.J
(@8a)•6•NOTES•••
(@85) Purpose-1981 c 256: (@86) "It is the primary purpose of
this act to assure that the provisions of RCW 41.04.250 and 41.04.260
and of any deferred; compensation plan established thereunder, are in
conformity with the requirements of 26 U.S.C. Sec. 457 and any other
reouirements of federal law relating to such a deferred compensation
_plan. This act shall be construed in such a manner as to accomplish
this purpose." [1981 c 256 5 1.1 "'Phis act" [1981 c 256) consists of
amendments to RCW 41.04.250, 41.04.260, 41.26.030, 41.32.010, and
41.40.010.
(@85) Severability---1981 c 256: (@86) "If any provision of this
act or its application to any person or circumstance is held invalid,
the re„minder of the act or the application of the provision to other
persons or circumstances is not affected." [1981 c 256 5 7.1
(3) The'sta•te investment board, at the request of the deferred
compensation committee, is authorized to invest moneys in the deferred
compensation revolving fund in accordance with RCW 43.84.150. Except
as provided in RCW 43.33A.160, one hundred percent of all earnings
from these investments shall accrue directly to the deferred
compensation revolving fund.
(4) The deferred compensation committee shall keep or cause to
be kept full and adequate accounts and records of the assets,
obligations, transactions, and affairs of any deferred compensation
plans created under RCW 41.04.250 throuah 41.04.260.
The deferred compensation committee shall file an annual report
of the financial condition, transactions, and affairs of the deferred
compensation plans under the committee's jurisdiction. A copy of the
annual report shall be filed with the speaker of the house of
representatives, the president of the senate, the oovernor, and the
state auditor. r
(5) Members of the deferred compensation committee shall.be
deemed to stand in a fiduciary relationship to the employees
participating in the deferred compensation plans created under RCW.
41.04.250 through 41.04.260 and shall discharge the duties of their
respective positions in good faith and with that diligence, care, -and
skill which ordinary prudent persons would exercise under similar
circumstances in like positions.
(6) The committee may adopt rules necessary to carry out the
purposes of RCW 41.04.250 and 41.04.260. (@59) (@60) [1984 c 242 S 1;
1983 c 226 S 1; 1981 c 256 S 3; 1975-'76 2nd ex.s. c 34 5 84; 1975 lst
ex.s. c 274 S 1.
(@8a)•••N.OTES*6*
(@85) Purpese— Severability-1981 c 256: (@86) See notes
following RCW 41.04.250.
(a85) Effective date—Severability-1975-'76 2nd ex.s. c 34:
(@86) See notes following RCW 2.08.115.
REFCFT Pais' M790E * STATE OF WASHI1,GTON
DEFERRED COF'FENSATION COMMITTEE
DEFERRALS -- UPDATE FOR JUNE 1987
AGENCY: WASH ST FRUIT COMM 515
EMPLOYEE NAME SSA AGY SUE DATE PAID
515 05/31/87
515 05/31/67
515 05/31/87
515\ 05/ 31/87
AGEINCY 515 TOTAL
This is an example of the printout you will receive from CDC after the l0th
of each month. The form is in duplicate and needs to be updated by you for
the current month. We need one copy back, with your check, no later than
the 5th of the following month. Make the check payable to the STATE TREASURER
and mail along with the report (M7905) to:
Committee for Deferred Compensation
1400 Evergreen Park Drive S.W.
Olympia, Wa. 98504
Attn: Accounting
IF THE CHECK IS RECEIVED LATE THE PARTICIPANT'S DEFERRAL MAY NOT BE INVESTED
UNTIL THE FOLLOWING MONTH.
If you have any questions, please call Susan Ponsteen 753-2615 (scan 234-2615)
-'or Trina Erickson 586-2797 (scan 321-2797).
FALL: 1
FUN DATE: 06/09/87
tMOUNT PAID
80.00
50.00
823.00
625.00
1.578.0C
l/
g C
STATE OF WASHINGTO N
COMMITTEE FOR DEFERRED COMPENSATION
14(X) [wrgrrrn Park Ihnr tiIV1 FX-11 * Olympa. 11' .hinglom 1)8504 • ('(X)) 75i-i(Nt)
PARTICIPATION INSTRUCTIONS
For a political sub -division to participate in the
Washington State Deferred Compensation program a resolution,
following the format of the enclosed resolution, must be
passed.
Please complete and sign the two (2) original resolutions
enclosed, forwarding one to me, Ernie Lahn, at the above
address. I will submit the resolution for approval at the
next scheduled Washington State Deferred Compensation Committee
meeting. Following this meeting you will receive a letter
from the Committee.
After receipt of the Committee letter we will contact you
to give a presentation of the program to inform employees
and enroll interested parties.
If you need further information please call me at the
above telephone number.
STATE OF WASHINGPON)
ss.
COUNTY OF KING )
I, Robin Wohlhueter, the duly appointed, qualified City Clerk of the
City of Auburn, a Municipal Corporation and Code City, situate in the
County of King, State of Washington, do hereby certify that the foregoing
is a full, true and correct copy of ordinance No. 4275 of the ordinances of
the City of Auburn, entitled "AN ORDINANCE."
I certify that said Ordinance No. 4275 was duly passed by the Council
and approved by the Mayor of the said City of Auburn, on the 21st day of March
A.D., 1988.
I further certify that said Ordinance No. 4275 was published as pro-
vided by law in the Valley News, a daily newspaper published in the City of
Auburn, and of general circulation therein, on the 27th day of March
A.D., 1988.
WITNESS my hand and the official seal of the City of Auburn, this 25th
day of April A.D., 1988.
CITY CLERK OF THE CITY OF AUBURN