8G
Date: September 23, 2025
To: Honorable Mayor and Members of the City Council
From: Tim Goodrich, City Treasurer |[email protected] Subject: City Treasurer – Approve Amendment and Adopt RESOLUTION Approving Amendment to 401(a) Defined Contribution Plan for Fire Plan 98215-03.
Expenditure: None.
RECOMMENDATION
Recommendation of the City Treasurer that City Council approve an amendment and adopt a RESOLUTION approving an amendment to the 401(a) Defined Contribution Plan for Fire Plan 98215-03 to allow participant Roth contributions effective October 7, 2025.
FUNDING
None required.
DISCUSSION
On June 4, 2024, an amendment was memorialized at City Council to add a 401(a) Defined Contribution Plan for Fire Plan 98215-03. However, the item inadvertently did not include Roth contributions. Roth contributions will be included in the updated plan by way of this item.
ATTACHMENTS
1. Amendment Including Roth Contributions
2. June 4, 2024 Item 9B
1 98215-03 (effective June 30, 2024)
1 AMENDMENT TO
GREAT-WEST RETIREMENT SERVICES® SECTION 401(a) PROFIT SHARING PLAN FOR
GOVERNMENT EMPLOYERS
The Great-West Re tirement Services® Section 401(a) Profit Sharing Plan for Governmental Employers was adopted by the City of Torrance, as such the City of Torrance 401(a) Defined Contribution Plan for Fire plan has been amended from time to time. The following amendment is made to the Plan and is effective October 7, 2025:
Section P Roth Contributions is amended as follows:
After-Tax Contributions
Will Participant Roth Contributions be allowed?
Yes
No
Executed this day of September 16, 2025, City of Torrance:
By
: Jasmine Allen_________ Title:___Deputy City Treasurer_____ ATTACHMENT 1
2 Council Meeting of
June 4, 2024
Honorable Mayor and Members
of the City Council
City Hall
Torrance, California
Members of the Council:
SUBJECT: City Treasurer — Approve Amendment and Adopt RESOLUTION Approving Amendment to 401(a) Defined Contribution Plan for Fire Pian 98215-03, and Authorize City Treasurer or Designee to Execute and Administer the Amended Section 401(a) Profit Sharing Plan. Expenditure:
None.
RECOMMENDATION
Recommendation of the City Treasurer that City Council:
1) Approve an amendment to the 401(a) Defined Contribution Plan for Fire Plan 98215- 03 to allow participant after-tax contributions effective June 30, 2024; and 2) Adopt a RESOLUTION approving an amendment to 401(a) Defined Contribution Plan for Fire Plan 98215-03; and
3) Authorize the City Treasurer or designee to execute and administer the amended Great-West Retirement Services Section 401(a) Profit Sharing Plan for Government Employers.
BACKGROUND/ANALYSIS
In 1974, an IRS 457 Deferred Compensation Plan was adopted, with the City Treasurer appointed as Plan Administrator, to provide a method for employees to defer income for retirement. The funds are currently invested with Empower Annuity Insurance Company of America (Empower) in both fixed income fund and variable mutual fund options. Empower continues to be rated A+ by A.M. Best Company Inc., which is a superior rating based on insurance company ratings.
In continuing its efforts to improve and enhance retirement benefits for City of Torrance (City) employees, the City Treasurer engaged Benefit Funding Services Group, an independent fiduciary consulting firm providing customized solutions for public and private sector retirement plans, to conduct an analysis of the retirement plan marketplace including Empower’s newly reduced pricing offers.
The City and Empower have agreed upon a plan for investment of employees deferred income. Plans include a service agreement, annuity contracts, and letter agreement to include 457 and 401(a) plans for administration of various plan elements. During negotiations between the Torrance Fire Fighters Association (TFFA) and Management, TFFA requested for its employees be allowed to make after-tax 401(a) contributions. 1 9B
3 ATTACHMENT 2
The City’s Deferred Compensation Plan Committee, comprised of the City Manager, City Attorney, City Treasurer, Finance Director, and Human Resources Director, reviewed and approved the request at the May 22"¢ Deferred Compensation Quarterly meeting. The projected implementation of anendment to the 401(a) Defined Contribution Plan for Fire Plan 98215-03 allowing participant after-tax contributions will be June 30, 2024.
Respectfully submitted,
TIM GOODRICH
CITY TREASURER
B
Jasmine Allen
Deputy City Treasurer
CONCUR:
Tim Goodrich
Aram Chapa
City Manager”
Attachments: A) Amendment to 401(a) Defined Contribution Plan for Fire Plan 92815-03 B) Resolution
C) Adoption Agreement — Section 401(a) Defined Contribution Plan 2 4
Attachment A
AMENDMENT TO
GREAT-WEST RETIREMENT SERVICES® SECTION 401(a) PROFIT SHARING PLAN FOR
GOVERNMENT EMPLOYERS
The Great-West Retirement Services® Section 401(a) Profit Sharing Plan for Governmental Employers was adopted by the City of Torrance, as such the City of Torrance 401(a) Defined Contribution Plan for Fire plan has been amended from time to time. The following amendment is made to the Plan and is effective June 30, 2024:
Section P After-Tax Contributions is amended as follows:
After-Tax Contributions
Will Participant After-Tax Contributions be allowed?
X] Yes
[| No
Executed this day of June 4, 2024. City of Torrance:
By: Jasmine Allen
Title: Deputy City Treasurer
98215-03 (effective June 30, 2024)
3 5
4 6
Attachment B
RESOLUTION NO. 2024-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TORRANCE APPROVING AN AMENDMENT TO 401(A) DEFINED CONTRIBUTION PLAN FOR FIRE PLAN 98215-03
WHEREAS, the City and Empower Retirement have agreed upon a plan for investment of employees deferred income, and
WHEREAS, said plans included a service agreement, annuity contracts and letter agreement to include 457 and 401(a) plans for administration of the various plan elements;
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF TORRANCE HEREBY RESOLVE AS FOLLOWS:
1. That the City of Torrance does hereby approve the amendment entitled “Great-West Retirement Services Section 401(a) Profit Sharing Plan For Government Employees” and its attached exhibits.
2. That the effective date of said amendment shall be June 30, 2024.
3. That a copy of said amendment be marked true and correct, and shall be attested to by the City Clerk.
INTRODUCED, APPROVED AND ADOPTED this __ day of
Mayor George K. Chen
APPROVED AS TO FORM: ATTEST:
PATRICK Q. SULLIVAN
By: Tatia Y. Strader, Rebecca Poirier, City Clerk
Assistant City Attorney
5 7
6 8
ADOPTION AGREEMENT
GREAT-WEST
SECTION 401 (a)
DEFINED CONTRIBUTION PLAN
FOR STATE AND LOCAL GOVERNMENTAL EMPLOYERS
City of Torrance
401 (a) Adoption Agreement
for Govemmental Employers
04/2003
Attachment C
7 9
GREAT-WEST SECTION 401(a) DEFINED CONTRIBUTION PLAN
FOR GOVERNMENTAL EMPLOYERS
The Employer named below hereby establishes (or, as applicable, amends and restates) a profit sharing plan for eligible Employees as provided in this Adoption Agreement and the accompanying Great-West Section 401(a) Defined Contribution Plan document.
A. EMPLOYER INFORMATION
1, EMPLOYER’S NAME AND ADDRESS:
City of Torrance
3031 Torrance Blvd.
‘Torrance, CA 90509
2. TELEPHONE NUMBER: 310-781-7611
3. TAX ID NUMBER: 95-6000803
4. NAME OF PLAN: City of Torrance 401(a) Defined Contribution Plan for Fire, Police, Engineers and Executive/Management Employees
5. NAME OF PLAN ADMINISTRATOR (the Employer unless another person(s) is appointed as set forth in section 3.02 of the Plan):
City of Torrance
B. EFFECTIVE DATE. (Check Box 1 OR Box 2 and fill in the blank(s).)
1. [ ] This is anew Plan having an effective date of
2. [X] This is an amended and restated Plan.
The effective date of the original Plan was July 1, 2001.
The effective date of the amended and restated Plan is January 1, 2002.
Cc. PLAN YEAR. (Check Box 1 OR Box 2.)
Plan Year shall mean:
1. ° [X] the calendar year.
401(a) Adoption Agreement
for Governmental Employers
04/2003
8 10
2. [ ] the 12-consecutive-month period ending on of each year.
D. CUSTODY OF ASSETS. (Check each box that applies.)
Internal Revenue Code (“Code”) § 401(a) shall be satisfied by setting aside Plan assets for the exclusive benefit of participants and beneficiaries, as follows:
1. { ] ina trust pursuant to the provisions of Article VII of the Plan. The Employer or certain employees (or holders of certain positions with Employer) as named in the trustee appointment attached to this Adoption Agreement shall be the Trustee.
2. [ } ina trust pursuant to a separate written trust agreement entered into between the Employer and the bank or trust company named in the trustee appointment attached to this Adoption Agreement.
3. [ ] in one or more annuity contracts meeting the requirements of Code § 401(f).
4. [X] in acustodial account meeting the requirements of Code § 401(f), pursuant to a separate written agreement with the bank, trust company or other qualified entity named in the appointment of custodian attached to this Adoption Agreement.
KE. ELIGIBLE EMPLOYEES. (Check each box that applies.)
“Employee” shall mean:
1. [ ] any full-time employee working or more hours per week
2. [ } any permanent part-time employee working hours per week
3. { ] any seasonal, temporary or similar part-time employee 4, [ ] any elected or appointed official
5. { ] any employee in the following class(es) of employees:
6. [X] | any employee eligible to participate in the Plan pursuant to Schedule A attached to this Adoption Agreement
who performs services for and receives any type of Compensation from the Employer (or any agency, department, subdivision or instrumentality of the Employer) for whom services are 401(a) Adoption Agreement 2
for Governmental Employers
04/2003
9 11
rendered. Unless Box E.4 is checked, elected or appointed officials will not be treated as Employees and will not be eligible to participate in the Plan, without regard to whether they are treated as common-law employees or independent contractors for other purposes.
Each Employee will be eligible to participate in this Plan in accordance with the provisions of Article IV of the Plan, except the following:
[ } Employees who have not attained the age of (not to exceed 21). [ ] Employees who have not completed_____—“- Years of Service during the Eligibility Computation Period.
[X] Employees who do not satisfy the eligibility requirements pursuant to Schedule A attached to this Adoption Agreement.
F. SERVICE WITH PREDECESSOR EMPLOYER. (Check Box 1 OR Box 2 OR Box 3.)
1. [X] This section is N/A because there are no predecessor employers.
2. { ] Service with any predecessor employers will not be counted for any purposes under the Plan.
3, [ ] Service with (insert name of predecessor employer(s)):
will be counted under the Plan for the following purposes (check each box that applies):
[ ] — eligibility.
[ ] vesting.
[ ] allocation of Employer Contributions.
G. HOURS OF SERVICE. (Check Box 1 OR Box 2 OR Box 3 OR Box 4.) Hours of Service shall be determined on the basis of:
1. [X] actual hours for which an Employee is paid or entitled to payment.
2. { ] days worked. An Employee shall be credited with ten (10) Hours of Service for each day that the Employee would otherwise be credited with one (1) or more Hours of Service.
401(a) Adoption Agreement 3
for Governmental Employers
04/2003
10 12
3. [ } weeks worked. An Employee shall be credited with forty-five (45) Hours of Service for each week that the Employee would otherwise be credited with one (1) or more Hours of Service.
4, [ } | months worked. An Employee shall be credited with one hundred-ninety (190) Hours of Service for each month that the Employee would otherwise be credited with one (1) or more Hours of Service.
H. YEAR OF SERVICE: ELIGIBILITY AND VESTING. (Check Box 1 OR Box 2 OR Box 3 OR Box 4.)
For purposes of eligibility and vesting, Year of Service shall mean a twelve-consecutive- month period during which the Employee completes:
1. (X] at least 1 Hour of Service.
2. [ ] atleast 1,000 Hours of Service.
3. [ ] atleast consecutive months of service.
4. [ ]
I. COMPENSATION DEFINITION. (Check Box 1 OR Box 2 OR Box 3 OR Box 4 -- Complete Box 5 if applicable.)
Compensation shall mean:
1. [ ] section 3401(a) compensation as defined in section 2.05 of the Plan.
2. [ ] W-2 compensation as defined in section 2.05 of the Plan.
3. [X] section 415 compensation as defined in section 2.05 of the Plan. 4, { ] the definition set forth in Schedule attached to this Adoption Agreement.
5. Compensation shall exclude: (Check each Box that applies.) [ ] overtime.
{ ] bonuses.
{ ] commissions.
[ ]
401(a) Adoption Agreement 4
for Governmental Employers
04/2003
11 13
J. COMPENSATION COMPUTATION PERIOD. (Check Box 1 OR Box 2.) Compensation shall be determined on the basis of the:
1. [ ] Plan Year.
2. [X] calendar year.
K, FIRST YEAR COMPENSATION. (Check Box | OR Box 2.)
For purposes of determining the Compensation on the basis of which Employer Contributions will be allocated for a Participant’s first year of participation, the Participant’s Compensation shall be his Compensation for the period commencing:
1. [ ] as of the first day of the Plan Year or calendar year (whichever was selected under J above).
2. [X] as of the first day the Employee became a Participant.
L. | ENTRY DATE. (Check Box 1 OR Box 2 OR Box 3 OR Box 4 OR Box 5.) Entry Date shall mean:
1. [ ] the first day of each Plan Year and the first day of the seventh month of each Plan Year.
2. [ ] _ the first day of each Plan Year.
3. { ] _ the first day of each month.
4, [ ] the first day of each payroll period.
5. [X] the date of hire.
M. EMPLOYER CONTRIBUTIONS. (Check each box that applies; Use Box 5 if there are variations in contribution rates for different classes of employees or ifAfter-tax Contributions are matched.)
The Employer shall contribute:
1. [ ] anamount fixed by appropriate action by the Employer.
2. [ ] _..% of Compensation of Participants for the Plan Year. 401(a) Adoption Agreement 5
for Governmental Employers
04/2003
12 14
3. [} § per Participant.
4. [X] an amount pursuant to Schedule A attached to this Adoption Agreement.
5. [ ] acontribution matching the Participant’s contribution to the Employer’s § 457(b) plan, as follows (specify rate of match and time of allocation, e.g., payroll by payroll, monthly, last day of plan year):
N. ALLOCATION OF EMPLOYER CONTRIBUTIONS. (Check each box that applies.)
1, [ ] A Participant must be employed on the last day of the Plan Year to receive an allocation of Employer Contributions for the Plan Year.
2. [X] Allocations of Employer Contributions will be made to Accounts of Participants who terminate employment before the last day of the Plan Year due to (Check each box that applies):
[X] death.
[X] disability.
{X] retirement on or after Early Retirement Age.
[X] retirement on or after Normal Retirement Age.
[ ] other Severance of Employment.
[X] other Severance of Employment, provided that the Participant is credited with a Year of Service for the Pian Year. For this purpose, a Participant shall be credited with one Year of Service for the Plan Year if the Participant completes at least one Hour(s) of Service during the Plan Year.
O. CODE § 414(h). (Check Box 1 OR Box 2.)
1. [ ] This Plan is a Code § 414(h) pick-up plan. Each Employee must contribute % of Compensation to the Plan, which the Employer agrees to pick-up within the meaning of Code § 414(h).
2. [X] This Plan does not contain a Code § 414(h) feature.
Pp. AFTER-TAX CONTRIBUTIONS. (Check Box I OR Box 2.)
1. [ ] Participant After-tax Contributions SHALL BE allowed.
2. [X] Participant After-tax Contributions SHALL NOT BE allowed. 401(a) Adoption Agreement 6
for Governmental Employers
04/2003
13 15
Q. FORFEITURES, (Check Box 1 OR Box 2 OR Box 3 OR Box 4 OR Box 5.) Forfeitures will be:
1. [ ] reallocated to Participants in the same manner as the Employer Contribution is allocated.
2. [] used first to offset Plan expenses and then reallocated to Participants in the same manner as the Employer Contribution is allocated.
3. [ ] used first to offset Plan expenses, then to reduce the Employer’s Employer Contribution and then reallocated to Participants in the same manner as the Employer Contribution is allocated.
4. [ ] used first to reduce the Employer’s Employer Contribution, then to offset Plan expenses.
5. {X] | N/A because all contributions are 100% vested immediately.
R. RETIREMENT AGES AND DISABILITY DEFINITION.
1. Normal Retirement Age shall mean: (Check Box a OR Box b OR Box c OR Box d.) (a) [] age6s.
(b) [X] age 59 1/2.
(c) { ] the later of age , or the Participant’s age upon completion of Years of Service.
(d) [] _ the ages set forth in Schedule attached to this Adoption Agreement.
2. Early Retirement Age shall mean: (Check Box a OR Box b) (a) [] Notapplicable.
(b) [X] attainment of age 50 and completion of 5 Years of Service.
3. Disability shall mean: (Check Box a OR Box b OR Box c OR Box d) (a) [] _ the inability to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment which can be expected to result in death or to be of long-continued and indefinite duration, within the meaning of Code § 72(m)(3).
401(a) Adoption Agreement 7
for Governmental Employers
04/2003
14 16
(b) [X] anillness or injury of a potentially permanent nature, expected to last for a continuous period of not less than 12 months, certified by a physician selected by or satisfactory to the Employer which prevents the Employee from engaging in any occupation for wage or profit for which the Employee is reasonably fitted by training, education or experience, as specified in the Adoption Agreement.
(c) [] anillness or injury of a potentially permanent nature, expected to last for a continuous period of not less than 12 months, certified by a physician ' gelected by or satisfactory to the Employer which prevents the Employee from engaging in his or her occupation.
(d) Other:
S. VESTING SCHEDULE. (Check Box 1 OR Box 2 OR Box 3 OR Box 4.) The vested interest of each Participant in his or her Employer Contribution Account shall be determined on the basis of the following schedule:
1. [X] 100% vesting immediately.
2. [ ] | 100% vesting after Years of Service.
3. [ ] 20% after 2 Years of Service.
40% after 3 Years of Service.
60% after 4 Years of Service.
80% after 5 Years of Service.
100% after 6 Years of Service.
4, [ } % after Years of Service.
% after Years of Service.
% after Years of Service.
___%after___‘ Years of Service.
___ %after___—‘ Years of Service.
% after _—«°Yeaars of Service.
% afters“ Years of Service.
% afters“ Years of Service.
% after _—S°Years of Service.
__%after___—s*Years of Service.
401(a) Adoption Agreement 8
for Governmental Employers
04/2003
15 17
VESTING COMPUTATION PERIOD. (Check Box 1 OR Box 2.)T.
A Participant’s Years of Service for purposes of vesting shall be computed by reference to:
1. [} the Plan Year.
2. [ ] the 12-consecutive month period beginning on the Employee’s Employment Commencement Date and each anniversary thereof.
3. [xX] N/A
U. ROLLOVERS. (Check each box that applies.)
1. [X]_ Rollovers from eligible Code § 457(b) plans SHALL BE allowed.
2. [X) Rollovers from plans qualified under Code §§ 401(a), 403(a) and 403(b) SHALL BE allowed.
3. [X] Rollovers from Individual Retirement Accounts and Annuities described in Code §§ 408(a) and (6) SHALL BE allowed.
Vv. TRANSFERS. | (Check Box I OR Box 2.)
1. [X] Transfers from plans qualified under Code § 401(a) SHALL BE allowed.
2. [ ] Transfers from plans qualified under Code § 401(a) SHALL NOT BE allowed.
W. HARDSHIP WITHDRAWALS. (Check Box 1 OR Box 2.)
1. [X] The Administrator MAY allow hardship withdrawals in accordance with section
10.04 of the Plan.
2. [ ] The Administrator MAY NOT allow hardship withdrawals in accordance with section 10.04 of the Plan.
X. PARTICIPANT LOANS. (Check Box I OR Box 2.)
1. [X] The Administrator MAY direct the Trustee to make Participant loans in accordance with Article XII of the Plan.
2. [ ] The Administrator MAY NOT direct the Trustee to make Participant loans in accordance with Article XII of the Plan.
401(a) Adoption Agreement 9
for Governmental Employers
04/2003
16 18
Y. QUALIFIED DOMESTIC RELATIONS ORDERS. (Check Box 1 OR Box 2.)
1. [X] The Plan SHALL accept qualified domestic relations orders as provided in section
15.02 of the Plan.
2. [ ] The Plan shall NOT accept qualified domestic relations orders as provided in section 15.02 of the Plan.
Zz. PAYMENT OPTIONS. (Check each box that applies.)
The following forms of payment will be allowed under the Plan to the extent consistent with the limitations of Code § 401(a)(9) and proposed or final Treasury Regulations thereunder.
[X] A-single lump-sum payment;
[X] Installment payments for a period of years;
[X] Partial lump-sum payment of a designated amount, with the balance payable in installment payments for a period of years;
[X] Annuity payments (payable on a monthly, quarterly, or annual basis) for the lifetime of the Participant or for the lifetimes of the Participant and Beneficiary; [X] Such other forms of installment payments as may be approved by the Employer.
AA. DEEMED TRADITIONAL IRA. (Check Box 1 OR Box 2.)
1. [ ] The deemed traditional IRA provisions of Article XVI of the Plan SHALL apply, effective . The trustee or custodian
of the deemed traditional IRA shall be (insert name of bank, trust company or approved nonbank custodian):
2. [X] The deemed traditional IRA provisions of Article XVI of the Plan SHALL NOT apply.
BB. DEEMED ROTH IRA. (Check Box 1 OR Box 2.)
1. [ ] The deemed Roth IRA provisions of Article XVII of the Plan SHALL apply, effective . The trustee or custodian
of the deemed Roth IRA shall be (insert name of bank, trust company or approved nonbank custodian).
2. [X] | The deemed Roth IRA provisions of Article XVII of the Plan SHALL NOT apply. 401(a) Adoption Agreement 10
for Governmental Employers
04/2003
17 19
CC. “SNAP-OFF” PROVISIONS FOR PLANS IN EFFECT BEFORE JANUARY 1, 2002.
For Plans that were in effect for Plan Years beginning before January 1, 2002, the following rules shall apply:
1. Compensation.
For Plan Years beginning before January 1, 1998, Compensation is defined as in Section I of the Adoption Agreement, except that Compensation does not include amounts that are not includible in the gross income of the Employee pursuant to Code §§ 125, 132(f), 402(a)(8), 402(h), or 403(b).
2. Allocation of Employer Contributions.
The provisions regarding the Allocation of Employer Contributions, including the definition of Compensation used for such allocation, that were set forth in the prior adoption agreement shall apply to Plan Years before January 1, 2002.
3. Special Rule for Employers Maintaining or That Have Maintained a Defined Benefit Plan. OO
If a Participant is or has ever been a Participant in a defined benefit plan maintained by the Employer, then for limitation years beginning before January 1, 2000, the limitation of Code § 415(e) shall be satisfied by (Check one):
[ ] adjusting the defined contribution fraction.
[ ] adjusting the defined benefit fraction.
[ ] _ other:
This Plan and Adoption Agreement are duly executed on behalf of the Employer.
Date: G —A45-O% | Date:
401(a) Adoption Agreement 11
for Governmental Employers
04/2003
18 20
CUSTODIAN
{Complete this section only if box D.4. was checked.]
Employer has elected to meet the trust requirement of Code § 401(a) by setting plan assets aside for the exclusive benefit of participants and beneficiaries in a custodial account meeting the requirements of Code § 401(f). The bank, trust company or other qualified entity named below shall be the “deemed trustee” of plan assets held pursuant to the custodial agreement to be entered into between the Employer and the entity named below.
A. Effective , the following named bank, trust company or other qualified entity is hereby appointed as custodian of all or a portion of the assets of the Plan:
Wells Fargo Bank N.A
B. INDIVIDUAL(S) AUTHORIZED TO ISSUE INSTRUCTIONS TO CUSTODIAN/TRUSTEE:
This appointment is duly signed on behalf of the Employer and the Custodian.
LOYER
' NaC Yvinast
a. (a Lovins Lhe
[Title]
Gr nQ
[Date]
CUSTODIAN
(ells Fane Prank Wer, N-p-
[Signature] CJ)
Vier President
[Title]
{o~ 8-03
[Date]
401(a) Adoption Agreement 12
for Governmental Employers
04/2003
19 21
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