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ORDINANCE NO. 2023-_03__
CITY OF ELKINS, WASHINGTON COUNTY, ARKANSAS
AN ORDINANCE TO APPROVE AND ADOPT THE ARKANSAS DIAMOND DEFERRED COMPENSATION PLAN FOR EMPLOYEES OF THE CITY OF ELKINS, ARKANSAS.
WHEREAS, in order to attract and retain qualified employees, the City Council of Elkins finds it necessary to provide a deferred compensation in accordance with the provisions of Ark. Code Ann. § 21-5-501, et. seq., and in accordance with Section 457 of the Internal Revenue Code of 1986, as amended; and
WHEREAS, the City of Elkins desires to participate in the Arkansas Diamond Deferred Compensation Plan (“Plan”), which is a deferred compensation plan established for the benefit of employees and independent contractors of the State of Arkansas, any agency or instrumentality of the State or a political subdivision of the State, in accordance with the provisions of Arkansas Code Annotated §21-5-501, et. seq., and in accordance with Section 457 of the Internal Revenue Code of 1986, as amended; and
WHEREAS, the City of Elkins has determined that by participating in the Plan it will reduce overall administrative costs of operating a deferred compensation plan, and afford attractive investment options to its employees; and
WHEREAS, the City of Elkins is an Employer as defined in the Plan; and
WHEREAS, as defined in the Plan, the City of Elkins is an Employer, and in order to become a Participating Employer in the Plan, the City of Elkins must execute an Adoption Agreement to the Plan, attached hereto as Exhibit “A”; and
WHEREAS, pursuant to State law, the City Council of Elkins has the authority to adopt this Ordinance approving the Adoption Agreement; and
WHEREAS, after review and consideration, the City Council has determined it is in the best interest and benefit to the community to approve and adopt the Arkansas Diamond Deferred Compensation Plan for the employees of the City of Elkins.
NOW, THEREFORE, BE IT ENACTED, by the City Council of the City of Elkins, Arkansas:
Section 1. The City Council of Elkins hereby approves and adopts the Arkansas Diamond Deferred Compensation Plan, attached hereto as Exhibit “A”.
Section 2. The City of Elkins acknowledges that the Plan Administrator for the Plan is the Executive Director, Employee Benefits Division, Department of Finance and Administration of the State of Arkansas.
Section 3. The Mayor is hereby authorized to sign the Adoption Agreement to the Plan and by so signing, be bound by the terms of the Plan as stated in the Adoption Agreement and other
Plan documents. The City reserves the right to amend its elections under the Adoption Agreement, so long as the amendment is not inconsistent with the Plan or the Internal, Revenue Code or other applicable law and is approved by the Plan Administrator.
Section 4. The City of Elkins agrees that it shall abide by the terms of the Plan, including amendments to the Plan made by the Plan Administrator, all investment, administrative, and other service agreements of the Plan, and all applicable provisions of the Internal Revenue Code and other applicable law.
Section 5. The City of Elkins accepts the administrative services to be provided by any service provider selected by the Plan Administrator. The City of Elkins acknowledges that fees will be imposed with respect to the services provided and that such fees may be deducted from the Participants’ Plan Accounts.
Section 6. The City of Elkins may terminate its participation in the Plan, including but not limited to, its contribution requirement, by way of.
(i) An ordinance of the City Council terminating its participation in the Plan. (ii) The ordinance must specify when the participation will end.
The Plan Administrator shall determine whether the ordinance complies with the terms of the Plan, and all applicable federal and state laws. The Plan Administrator shall also determine an appropriate effective date, and shall provide appropriate forms to terminate ongoing participation. However; distributions under the Plan of existing accounts to Participants will be made in accordance with the Plan.
Section 7. The City of Elkins acknowledges that all assets held in connection with the Plan, including all contributions to the Plan, all property and rights acquired or purchased by such amounts and all income attributable to such amounts, property or rights shall be held in trust for the exclusive benefits of participants and their Beneficiaries under the Plan. No part of the assets and income of the Plan shall be used for, or diverted to, purposes other than for the exclusive benefit of Participants and their Beneficiaries and for defraying, reasonable expenses of the Plan. All amounts of compensation deferred pursuant to the Plan, including employer contributions, all property and rights acquired or purchased with such amounts and all income attributable to such amounts, are held as part of the Plan. All contributions to the Plan shall be transferred to the Plan Custodian to be held, managed, invested and distributed as part of the Plan’s Custodial Account in accordance with the provisions of the Plan. The City must transfer all contributions to the Plan to the Plan Custodian. All benefits under the Plan shall be distributed solely from the Plan’s Custodial Account pursuant to the Plan.
Section 8. It is the intent of the City of Elkins that all new contributions made by the City of Elkins on behalf of the employees after adoption of the Plan will be made to the Plan.
Section 9. All ordinances or parts of ordinances in conflict with this ordinance are hereby repealed.
Section 10. In the event that any section, paragraph, subdivision, clause, phrase, or other provision or portion of this Ordinance shall be adjudged invalid or unconstitutional, the same shall not affect the validity of this Ordinance as a whole, or any part or provision, other than the part so decided to be invalid or unconstitutional, and the remaining provisions of this Ordinance shall be construed as if such invalid, unenforceable or unconstitutional provision or provisions had never been contained herein.
PASSED AND APPROVED this ____ day of May 2023.
Troy Reed, Mayor
Delia Foster, City Clerk