Chapter 2.36
DEFERRED COMPENSATION PLAN

Sections:

2.36.010    Creation and establishment.

2.36.020    Participation availability to city officials or employees.

2.36.030    Authority to purchase insurance contracts.

2.36.040    Premiums constitute city asset.

2.36.050    Authority of mayor to establish rules and procedures.

2.36.010 Creation and establishment.

There is created and established in the city of Sultan, a qualified pension plan in the form of a deferred annuity for all eligible employees and officials. (Ord. 345 § 1, 1976)

2.36.020 Participation availability to city officials or employees.

Such pension plan or deferred annuity benefits shall be available to those employees who elect to participate in said plan and who agree to take a reduction in salary in the equivalent amount of the contribution required to be made by the city for and on behalf of such employee or official. (Ord. 345 § 2, 1976)

2.36.030 Authority to purchase insurance contracts.

In order to accumulate the appropriate funds to pay participating employees’ and officials’ benefits in accordance with the deferred compensation plan, the council of the city of Sultan does authorize and approve the purchase of retirement annuity contracts as issued by Aetna Variable Annuity Life Insurance Company in such amounts as may be appropriate to provide plan benefits. (Ord. 345 § 3, 1976)

2.36.040 Premiums constitute city asset.

A. It is the intention of the city that the premiums paid by the city for such annuity contracts will not currently be considered as income paid to the employees and officials concerned.

B. Thus, the city of Sultan will own and have all rights under the said annuity contracts and such contracts will not be held in any way as collateral security for the fulfilling of any of the obligations of the city of Sultan, but shall be held as a general, unpledged and unrestricted asset. (Ord. 345 § 4, 1976)

2.36.050 Authority of mayor to establish rules and procedures.

The council does authorize the mayor of the city of Sultan to act on its behalf in respect to these annuity contracts and to formulate rules and procedures for the purchase and administration of them. (Ord. 345 § 5, 1976)