West Palm Beach |
Code of Ordinances |
Chapter 62. PERSONNEL AND RETIREMENT |
Article III. PENSIONS AND RETIREMENT |
Division 4. DEFERRED COMPENSATION PLAN |
§ 62-160. Trust and investment of accounts.
(a)
Establishment of trust, exclusive benefit. The city shall enter into a trust agreement with a trustee chosen by the city to hold the assets of the plan for the exclusive benefit of participants and beneficiaries, except that expenses and taxes may be paid from the trust as provided in subsection (b) of this section and section 62-163(d). No part of the corpus or income of the trust shall revert to the city or be used for or diverted to purposes other than the exclusive benefit of participants and their beneficiaries. No person shall have any interest in, or to, any part of the assets held under the plan except as and to the extent expressly provided in the plan.
(b)
Taxes and expenses. All taxes of any and all kinds whatsoever that may be levied or assessed under existing or future laws upon, or in respect to the trust or the income thereof, and all commissions or acquisitions or dispositions of securities and similar expenses of investment and reinvestment of the trust shall be paid from the trust. Such reasonable compensation of the service provider, as may be agreed upon from time to time by the city, and reimbursement for reasonable expenses incurred by the plan administrator and the service provider in performance of their duties under this division, including, but not limited to, fees for legal, accounting, investment and custodial services, shall also be paid from the trust. However, no person who receives full-time pay from the city may receive compensation from the trust, except for expenses properly and actually incurred.
(c)
Payment of benefits. The payment of benefits from the trust in accordance with the terms of the plan may be made by the service provider, any custodian or other person so authorized by the city to make such disbursement. Unless otherwise specifically directed by the city or the plan administrator, benefits under this plan shall be paid only if the service provider, custodian or other person, decides in his discretion that the applicant is entitled to them. The service provider, custodian or other person shall not be liable with respect to any distribution of trust assets made at the direction of the city or the plan administrator.
(d)
Investment funds. In accordance with uniform and nondiscriminatory rules established by the plan administrator and the service provider, the participant may direct his accounts to be invested in one or more investment funds authorized by the plan administrator. Each participant is solely responsible for the selection of his investment options from the available funds. The city, its employees, the plan administrator and the service provider are not empowered to advise a participant as to the manner in which his accounts shall be invested. The fact that an investment fund is available to a participant for investment under the plan shall not be construed as a recommendation for investment in that fund. The city and the plan administrator do not guarantee the participants or their beneficiaries against loss of or depreciation in value of any right or benefit that any of them may acquire under the terms of the plan.
(e)
Valuation of accounts. As of each accounting date, the plan assets held in each investment fund offered shall be valued at fair market value and the investment income and gains or losses for each fund shall be determined. Such investment income and gains or losses shall be allocated proportionately among all account balances on a fund-by-fund basis. The allocation shall be in the proportion that each such account balance in the fund as of the immediately preceding accounting date bears to the total of all such account balances in the fund as of that accounting date. For purposes of this section, all account balances include the account balances of all participants and beneficiaries. The plan administrator reserves the right to change from time to time the procedures used in valuing the accounts or crediting or debiting the accounts if it determines, after due deliberation and upon the advice of counsel or the service provider, that such an action is justified in that it results in a more accurate reflection of the fair market value of assets. In the event of a conflict between the provisions of this section and such new procedures, the new procedures shall prevail.
(f)
Participant loan accounts. Participant loan accounts shall be invested in accordance with section 62-162(c). Such accounts shall not share in any investment income and gains or losses of the investment funds described in subsection (e) of this section.
(g)
Liability limitation. In no event shall the city's liability to pay benefits to a participant under this plan exceed the value of the amounts credited to the participant's account; neither the city nor the plan administrator nor the service provider shall be liable for losses arising from depreciation or shrinkage in the value of any investments acquired under this plan.
(Ord. No. 4319-11, § 1, 2-22-2011)