Agenda Packets - 1983/09/12 - Laserfiche WebLink

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ICMA Retirement Corporation Summary of Changes for Plans Administered by The ICMA Retirement Corporation Recent cbuutges in fictlera I reguhmitins contenting public deferred compensation plans make it necessary for nearly all plats to he untended. Accordingly, we are offering a revision of the deferred cougensation plan we admin- ister for your employees on your behal1'. Also, we have taken this opportunity to make ether desirable changes in our administrative arrangements which we believe will further enhance the quality of our program by increasing your ability to directly influence nor activities and policies. These changes are reflected in the three documents which are enclosed. We ask that you obtain a resolution of your governing body adopting these documents. A suggested resolution is enclosed for your convenience. The Jocu- nhcnis are as follows: !. A new deferred compensation plan doonmmf which amends and restates the existing plan. This plan has been prepared in light of new Internal Revenue Ser- vice regulations, was submitted to the IRS, and has received its approval. The basic philosophy of plan design has teen to provide a plan as liberal as the Inw and regulations will allow. The existing plan provides for amendment upon our proposal with such amendment to become effective within 60 days unless you object in writing. Accord- ingly, you should regard this as formal notice of plan amendment. While governing body action is not re- quired for plan amendments, we recommend that you formally adopt the new plan in conjunction with the other documents. A Declaration of Trust for the ICMA Retirement Trust. This is a new feature of our organizational structure. We currently have a direct Retirement Trust relationship with you which will continue. The new trust establishes a Board of Trusices to be selected by participating employees, thus giving the employers ultimate control over the management of the fords. Included in the trustees' responsibilities are oversight of our performance, appointment of auditors, and monitoring of investment goals and objectives. The new host arrangement has hcen suhnoued tat the Securities and Exchange Commission for its review. As you may know, unlike the IRS, the SEC does not approve transactions but indicates whether or not it will take action against you if a transaction is carried out, The SEC lets given us a "no -action" letter with respect to the Retirement Trust's compliance with the registra- tion provisions of the federal securities laws. The Retirement Trust has been created by a pounders Committee of persons representative of the participants in the RC program. They have determined that the first elections shall he held in the curly fall of 1983, preferably September. We will need topics of your governing body's resolution if you are In vote in the first cleclion or for any of your employees to be nominated as trustees. It is expected that all investments nmdd on your behalf will be held under the ICMA Retirement Trust after it becomes effective. However, it is also expected that, unless an employer adopts the Declaration of Trust, its investments will not be held thereunder following a transitional period. Therefore, while failure to adopt the Declaration of Trust will not directly affect your plan or have any immediate effect on the investment of your funds, it is required for your full and continu- ing participation in the Retirement Trust. 3. An amended version of your existing trust agree- ment. The amendments are intended to clarify this agreement and conform it to the new plan document. Thcsc changes improve and enhance the program. The addition of the ICMA Retirement Trust is done in the spirit of our lung -standing objective of serving the best interests of our participmus. In file event you feel a need for addi- tional information, please feel free to call our office toll. free ;it (800) 424.9249. As always, we arc prepared to assist you.