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Home My WebLink About2013-004 Amending Principal Life 457 Deferred Comp Plan to Permit LoansRESOLUTION NO. 2013 -004 A RESOLUTION OF THE CITY OF OCOEE, FLORIDA RELATING TO AMENDING THE PRINCIPAL LIFE 457 DEFERRED COMPENSATION RETIREMENT PLAN TO PERMIT LOANS; PROVIDING THAT THE PLAN CONTINUES TO BE ADMINISTERED BY PRINCIPAL LIFE RETIREMENT SERVICES PURSUANT TO THE SPECIFIC PROVISIONS OF THE ADOPTION AGREEMENT ATTACHED HERETO; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, The City of Ocoee has employees rendering valuable services; and WHEREAS, the City of Ocoee has established a 457 Deferred Compensation Retirement Plan (the "Plan ") for such employees which serves the interest of the City by enabling it to provide reasonable retirement security for its employees, by providing increased flexibility in its personnel management systems, and by assisting in the attraction and retention of competent personnel; and WHEREAS, the City of Ocoee has determined that permitting participants in the retirement plan to take loans from the Plan will serve these objectives; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF OCOEE, FLORIDA: the Principal Life 457 Deferred Compensation Retirement Plan will permit loans. SECTION ONE: authorizes that the Human Resources Director shall be the coordinator for the amended Plan; shall receive reports, notices, etc., from the Principal Life Insurance Company; may delegate any administrative duties relating to the Plan to appropriate departments; and shall execute all necessary agreements with Principal Life Insurance Company incidental to the administration of the Plan. SECTION TWO: Conflicts All resolutions, parts of resolutions or acts of the City Commission of the City of Ocoee in conflict herewith are hereby repealed and rescinded. SECTION THREE: S everability . If any section, subsection, sentence, clause, phrase or portion of this Resolution is for any reason held invalid or unconstitutional . by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereof. SECTION FOUR: Effective Date This Resolution shall become effective immediately upon passage and adoption. PASSED AND ADOPTED this 19th day of February, 2013 ATTEST: a _ Beth Eikenberry, City Clerk r° APPROVED: CITY OF OCOEE, FLORIDA S. Scott Vandergrift, Mayor (SEAL) FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA. APPROVED AS TO FORM AND LEGALITY THIS jff l ) DAY OF f: �- ,2013 APPROVED BY THE OCOEE CITY COMMISSION ON THE ABOVE DATE UNDER AGENDA ITEM SHUFFIELD, LOWMAN & WILSON PA. By: _ Attu ney financial Mailing Address: Principal Life eSignature Loan Payout Group Des Moines, IA 50392 -0001 I Insurance Company I Authorization /Release CTD 01337 Contract No. /Plan I.D. No. Plan Name As an authorized officer of C-4 0+ (employer name), I authorize and direct Principal Life Insurance Company to process loan requests from all employees who are participants under the Plan according to the procedures outlined in this agreement. This is for the purpose of binding that company in both its non - fiduciary capacity as plan sponsor and its fiduciary capacity as Plan Administrator within the meaning of ERISA for the above referenced retirement plan. Once the participant accepts the loan terms through The Principal Retirement Service Center (retirement service center), applicable fees will be assessed and are non- refundable. Loans requested on the retirement service center will be taken proportionately from the participant's available investments. If the participant wants to specify investments or contributions from which to take the loan, we will prepare the Loan Application & Agreement and Truth-in-Lending Disclosure Statement and send Principal Life a completed Loan Payout Request form to process the loan payout. Principal Life will process loans requested through the retirement service center. It isn't necessary for Principal Life to receive written approval of each loan request from the Loan Administrator. Given that all loan applicants are actively employed and use up to 50% of their vested account balance at the time the loan is made as security for the loan, the Loan Administrator deems all participants who seek loans as creditworthy, except for those who have loans already in default. Establishing Interest Rate The Loan Administrator determines the interest rate(s) for all loans and directs Principal Life to use the following interest rate for all loans requested through the retirement service center until otherwise indicated in writing to Principal Life: 1. The initial interest rate and the rate used until a change is submitted in writing by the Loan Administrator is % Or Please circle A base rate equal to the Prime Rate (as published in the Wall Street Journal) The following illustrates the process of this loan service: The Participant: • logs on to The Principal Retirement Service Center and selects the terms of the loan • verifies his /her home address, and reviews the Loan Application & Agreement and Truth -in- Lending Disclosure Statement • directs Principal Life to process the loan by re- entering his /her PIN number. This eSignature serves as acceptance of the loan terms and authorization to process the loan. No written signature will be obtained. Principal Life: • processes the loan and sets up the loan records • issues a check and mails it to the participant • mails a paper copy of the loan document to the participant separately • produces a paper copy of the loan documents and sends it to the address provided below for the Trustee to retain until the loan is paid off • uses the secure Employer Message Center ( www.principal.com ) to notify the Primary Security Administrator of the terms of the loan to establish payroll deduction of the loan payments PG 3804 11/2002 Address to Send Loan Documents It is the trustee's responsibility to retain loan documents until the loan is paid off. Loan documents should be sent to the person and address indicated below. Name t ry z_ GU c Address L }� C %t'e`r't� °` ��utivlf exf�rr fu = ,S Those signing below (hereinafter "we ", "us ", or "our ") have reviewed and approve this loan processing method. We agree this loan processing method complies with plan loan provisions. We release Principal Life from any and all liability that may arise from the performance of this authorization or processing of loans. This includes, but is not limited to, holding Principal Life harniless if: • our state law prohibits this arrangement • someone other than the participant takes a loan from the participant's account without the participant's knowledge or consent • the loan payout results in a loss of investment earnings • the participant is later determined not to be creditworthy • the tenors of the loan are unreasonable (i.e., the payment exceeds the participant's take home pay) • the address confirmed by the participant is inaccurate and prevents /delays receipt of the check • the person requesting a loan is not a party -in- interest, but Principal Life is not aware of this at the time the loan is requested In the event a participant disputes this procedure, we agree to indemnify Principal Life with respect to any costs or liability of any nature, including but not limited to attorney fees. We may terminate this authorization at any time by notifying Principal Life in writing. Any termination of this authorization will not be effective until such notification is received at the home office of Principal Life. The release of Principal Life herein shall survive any liability due to this loan processing method. Principal Life has the right to terminate this service upon providing written notice to us. X Loan Administrator Signature (if different from above) Title Please see attached signatures. Date Date PG 3804 11/2002 CITY OF OCOEE SIGNATURE PAGE APPROVED: ATTEST: CITY OF OCOEE, FLORIDA Beth Eikenberry, City Clerk S. Scott Vandergrift, Mayor (SEAL) FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA APPROVED AS TO FORM AND LEGALITY on this day of , 20_. SHUFFIELD, LOWMAN & WILSON P.A. IC DATE: APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD 20 UNDER AGENDA ITEM NO. Scott Cookson, City Attorney