1 RESOLUTION 2023-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MARYSVILLE, COUNTY OF YUBA, ADOPTING KEENAN & ASSOCIATES’S ACCUMULATION
PROGRAM FOR PART-TIME AND LIMITED-SERVICE EMPLOYEES (APPLE) PLAN, REPLACING IN FULL THE CITY OF MARYSVILLE PARS ARS 401(A) FICA
ALTERNATIVE TO SOCIAL SECURITY PLAN
WHEREAS, California Government Code section 53216, et seq., authorizes a governmental employer to establish and fund a pension Plan covering its employees on a compulsory basis; AND
WHEREAS, Section 11332 of the Omnibus Budget Reconciliation ACT of 1990 (“OBRA ‘90”) extends Social Security retirement benefit coverage to employees of state and local governments who are not covered by a state or local retirement system and subjects the employer and employee to Federal Insurance Contributions Act (“FICA”) taxes on the employee’s wages; and
WHEREAS, OBRA ’90 excludes from the requirement of Social Security coverage governmental employees who are covered by a compulsory retirement system of a state or local government; and
WHEREAS, the City of Marysville (the “Employer”) currently provides a FICA alternative plan to part-time and temporary employees of the Employer through Public Agency Retirement Services (“PARS”) Alternative Retirement System (“ARS”) Plan and Trust; and
WHEREAS, the Employer desires to continue in providing a tax-qualified FICA alternative plan for said employees, but to replace the existing PARS ARS Plan and Trust with the Accumulation Program for Part-Time and Limited-Service Employees of the City of Marysville (“APPLE Plan”);
WHEREAS, the Council has reviewed and elected to adopt the Accumulation Program for Part-Time and Limited-Service Employees (“APPLE”) to cover the Employer’s part-time and temporary employees
NOW, THEREFORE, BE IT RESOLVED, that pursuant to the Employer’s authority under the existing PARS Plan to amend the plan, the City Council (“the Council”) does hereby adopt the Accumulation Program for Part-Time and Limited-Service Employees of the City of Marysville as an amendment to the existing PARS Plan, replacing the PARS Plan in full effective November 1, 2023.
FURTHER RESOLVED, that the Council hereby designates the Employer as the Plan Administrator of the APPLE Plan.
2 FURTHER RESOLVED, that the City hereby terminates the Employers participation in the PARS Trust and removes US Bank the Trustee of the Plan.
FURTHER RESOLVED, that Keenan & Associates will act as Broker for American United Life Insurance Company’s 3121 Alternative to Social Security program and provide consultant and broker services for the APPLE Plan as outlined in the Keenan & Associates Service Agreement.
FURTHER RESOLVED, that the Council appoints the City of Marysville as Trustee of the APPLE Plan.
FURTHER RESOLVED that the Council hereby removes Public Agency Retirement Services (PARS) as Trust Administrator and appoints US BENCOR MidAmerica (“USBMA”) as Third-Party Administrator of the APPLE Plan.
FURTHER RESOLVED, that the Council directs the transfer of the plan assets held by U.S. Bank under the PARS Plan and Trust to AUL, as custodian for the successor Trustee, the City of Marysville for the benefit of the City of Marysville APPLE Plan, to occur within 30 days after November 1, 2023, or a date mutually agreed upon by PARS and the City of Marysville. This will facilitate the ability of USBMA to process Plan distributions with minimal delays to Plan Participants.
FURTHER RESOLVED, that the Council directs the transfer of plan participant’s account information from PARS to USBMA, to occur within 30 days after November 1, 2023, or a date mutually agreed upon by PARS and the City of Marysville in order for USBMA to process Plan distribution with minimal delays.
FURTHER RESOLVED, that the Council authorizes USBMA and/or Keenan & Associates to execute, on behalf of the Employer, the APPLE Plan and any other documents necessary to carry out the provisions of the APPLE Plan; to contract with Keenan & Associates to provide ongoing administrative consulting services in connection with the operation of the APPLE Plan; to arrange funding of the Plan through AUL.
FURTHER RESOLVED:
I. That, pursuant to Code section 414(h) (2), the Employer will continue to “pick up” employee contributions to the APPLE Plan on behalf of Plan participants. “Employee contributions” shall mean those contributions to the APPLE Plan, which are deducted from the salary of employees and are credited to individual employees’ accounts.
II. That the contributions made by the Employer to the APPLE Plan, although designated as employee contributions, will be paid by the Employer in lieu of contributions by the employees who are participants in the APPLE Plan.
III. That employees shall not have the option of choosing to receive the contributed amounts directly instead of having them paid by the Employer to the APPLE 3 Plan.
IV. That the Employer shall pay to the APPLE Plan the contributions designated as employee contributions from the same source of funds as used in paying salary.
V. That the amount of the contributions designated as employee contributions and paid by the Employer to the APPLE Plan on behalf of an employee shall be the entire contributions required of the employee under the Plan.
FURTHER RESOLVED, that the (“Title”) City Manager, or designee, is hereby authorized, empowered and directed, in the name and on behalf of the Employer, to execute such documents and instruments and to take all such other and further actions as may be necessary or appropriate to carry out the purpose and the intent of the foregoing resolutions.
PASSED AND ADOPTED by the City Council of the City of Marysville in Yuba County, California, this 15th day of August 2023.
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Chris Branscum, Mayor
Attest:
_______________________________
Nicole Moe, City Clerk
I, Nicole Moe, City Clerk, hereby certify that Resolution 2023-XX was adopted by the City of Marysville’s City Council at its regular meeting of August 15, 2023, by the following vote:
Ayes:
Noes:
Absent:
Abstain:
______________________________
Nicole Moe, City Clerk
Attestation Date: ________________