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CCR1988077COMMON COUNCIL - CITY OF MUSKEGO RESOLUTION 1/77-88 APPROVAL OF RESTATED CITY OF MUSKEGO PENSION TRUST BE IT RESOLVED that the Common Council of the City of Muskego, upon the recommendation of the Finance Committee does hereby approve the Restated City of Muskego Pension Trust as attached hereto. BE IT FURTHER RESOLVED that the Mayor and Clerk are authorized to sign said Pension Trust on behalf of the City of Muskego as trustees. DATED THIS a(p-& DAY OF 9 1988. CE COMMITTE Ald. Daniel J. Hilt ATTEST : City Clerk 4/88 jm CITY OF MUSKEG0 PENSION TRUST RESTATED 1988 THIS AGREEMENT. hereby made and entered into this a%)r day of n PRIL , 1988, by and between the City Trustee designated herein and any and all successors to such of Muskego, (herein referred to as the "Employer"), and the Trustee. WITNESSETH WHEREAS, the Employer heretofore established the City of Muskego Pension Trust, (hereinafter referred to as the "Trust"), effective June 1. 1968, (hereinafter referred to as the "Effective Date"). in recognition of the contribu- tion made to operations of the City of Muskego by its Employees and for the exclusive benefit of its eligible Employees; and has the ability to amend the Trust provided that such amend- WHEREAS, under the terms of the Trust, the Employer ment is set out in writing and executed by the Employer; and WHEREAS, since the Effective Date of the Trust, the various amendments to the Trust from time to time have not been incorporated into a complete restated trust document; ployer and the Trustee, in accordance with the provisions of NOW, THEREFORE. effective January 1, 1987, the Em- the Trust, hereby restate the Trust to incorporate all the various amendments made to it between the Effective Date and January 1, 1987, and provide as follows: 1' INDEX PAGE . ARTICLE ARTICLE ARTICLE ARTICLE ARTICLE ARTICLE ARTICLE ARTICLE ARTICLE ARTICLE ARTICLE . ARTICLE ARTICLE ARTICLE I . Definitions ................................... 1 I1 . Eligibility and Participation ................ 3 I11 . Contributions and Allocations ............... 4 IV . Investment of Contributions .................. 6 V . Valuation of Assets ........................... 7 VI . Normal Pension Benefits ...................... a VI1 . Benficiary .................................. 11 VI11 . Termination of Employment .................. 12 IX . Breaks in Employment ......................... 14 X . No Reversion to Employer ...................... 15 XI . Right to Alter, Amend or Revoke .............. 16 XI1 . Provisions with Respect to the Trustee ...... 17 XI11 . Provisions Relating to Insurance Companies .. 21 XIV . Miscellaneous Provisions .................... 22 -1- DEFINITIONS ARTICLE I Section 1.01. to each Participant, the value of the account maintained on "Account" shall mean, with respect made from time to time under this Trust. behalf of a Participant to which Employer contributions are Section 1.02. "Age" shall mean, as determined with date . respect to any date, the age at nearest birthday on such or persons entitled to receive any amount payable pursuant Section 1.03. "Beneficiary" shall mean the person to this Trust upon the death of a Participant. Section 1.04. "Compensation" shall mean, for an weekly wage payments from the Employer, including all Employee paid on an hourly basis, the total of his basic amounts paid for overtime. "Compensation" shall mean, for an Employee paid on a salary basis, the total of his basic and sick pay, but shall not include bonuses, if any, non- salary. In all cases, compensation shall include vacation taxable fringe benefits or contributions made on behalf of any Participant under this plan or any other Employee benefit plan of the Employer. Section 1.05. "Effective Date" shall mean January I, 1968. is employed by the Employer for not less than twenty (20) Section 1.06. "Employee" shall mean any person who hours per week, and for more than five (5) months in any nor employees covered under the Wisconsin Retirement Fund or calendar year. Neither elected officials of the Employer any other retirement plan provided by the employer shall constitute Employees for the purposes of this Trust. Section 1.07. "Employer" shall mean the City of Muskego. each year. Section 1.08. "Entry Date" shall mean January 1 of of a Participant's Account that is not vested, and occurs on Section 1.09. "Forfeiture" shall mean that portion the earlier of: (a) the distribution of the entire vested portion of a Participant's Account, or (b) the last day of the Plan Year in which the Participant incurs a break in Employment pursuant to Article IX. -1- Section 1.10. legal reserve life insurance company licensed to do business "Insurance Company" shall mean any In one or more states of the United States. Section 1.11. life insurance, annuity or variable annuity contract or any "Insurance Contract" shall mean a combination thereof, including both individual and group contracts issued by an insurer. Section 1.12. "Normal Retirement Date" shall mean the Entry Date on which the Participant is age 65. who becomes a participating Employee under this trust as Section 1.13. "Participant" shall mean an Employee provided in Article 11. Section 1.14. "Plan Year" shall mean the twelve December 31st of each year. consecutive month period beginning on January 1st ending on the City of Muskego and the City Clerk of the City of Section 1.15. "Trustee" shall mean the Mayor of Muskego who shall serve as co-Trustees, and any named Successor Trustee, who shall be referred to herein in the singular as Trustee. a poses pursuant to Section 8.02 shall mean a period of serv- Section 1.16. "Year of Service" for vesting pur- - ice as a Participant based on the Participant's actual period of employment from the beginning to the end of a Plan Year. -2- ELIGIBILITY AND PARTICIPATION ARTICLE I1 participate in this Trust on the first Entry Date on which Section 2-01. An Employee shall become eligible to he meets both of the following requirements: throughout the period of one year immediately preceding such (a) He shall have been an Employee continuously continuity of service shall not be deemed to be interrupted Entry Date. For the purpose of determining eligibility, by the absence of an Employee with the consent of the Employer, or during a term of active duty in the armed the duration of a national emergency or a state of war and forces of the United States or of any states thereof, for for ninety (90) days thereafter, or for such longer period during which his employment rights are protected by law. However, no Employee shall become a Participant earlier than the first Entry Date on or next following his return from such absence. (b) His age shall be not less than 18 years. Section 2.02. At least fifteen (15) days, but not more than forty-five (45) days, before each Entry Date, the Trustee shall notify each person who will become an eligible Employee for the first time on such Entry Date of the fact of such eligibility and shall give him an opportunity to become a Participant. Section 2.03. Every eligible Employee who desires to become a Participant shall signify his acceptance of the application on a form provided for the purpose by the Trus- terms and conditions of this Trust by executing a written tee and shall execute such additional application forms as may be required by any Insurance Company designated by the Trustee. have performed all acts required of him for participation in Section 2.04. If an eligible Employee shall not this Trust within sixty (60) days after the date on which may not become a Participant prior to the first Entry Date the Trustee shall have notified him of his eligibility, he acts, and then only provided he is an eligible Employee. thereafter, preceding which he shall have performed such Section 2.05. The Employer agrees to furnish the Trustee such information in the Employer's possession as the Trustee shall require from time to time to perform the duties under this Trust. Section 2.06. Only with respect to Employees who satisfy the eligibility requirements of this Article I1 between January 1, 1987, and March 8, 1988, an extra Entry Date will be provided on July 1 during such time period. -3- CONTRIBUTIONS AND ALLOCATIONS ARTICLE I11 to alter, amend, or terminate the trust, the Employer shall Section 3.01. Subject to the right of the Employer contribute the amount, reduced by any forfeitures, designat- ed in Section 3.06. All amounts contributed by the Employer shall be made for the exclusive benefit of the Participants and Beneficiaries of their estates and in no event shall any contribution by the Employer or income therefrom revert to the Employer except as provided in Section 3.05. Section 3.02. The Employer shall pay the contribu- scribed by law. tion for each Plan Year to the Trustee within the time pre- Section 3.03. The allocation of net earnings and basis based on each Participant's Account balance at the end losses of the trust fund shall be allocated on a pro rata of each Plan Year. Section 3.04. Forfeitures shall be used to reduce the Employer's contributions under Section 3.01. Section 3.05. In no event shall any contribution by the Employer or income on such contribution revert to the mistake of fact may be returned. Employer except that any contribution made because of a Section 3.06. The amount of the Employer's con- tribution shall be the amount on behalf of each partici- pating Employee called for in separate written agreements then in effect between the Employer and its Employees. Such contributions shall be as shown in Schedule A attached hereto. Schedule A will be amended from time to time as the amount of the Employer's contribution changes, pursuant to written agreement with its employees. Section 3.07. Plotwithstanding any provision in the Trust to the contrary, the total additions made to the account of any Participant for any Plan Year shall not exceed the lesser of $30,000 or 25% of the Participant's compensation as defined in section 1.415-2(d)(l)(i) of the income tax regulations for such year except that such $30,000 shall be increased as permitted by the Internal Revenue Service regulations to reflect cost-of-living adjustments. The above limitations are intended to comply with as amended so that the maximum benefits provided by plans of the provisions of section 415 of the Internal Revenue Code the employer shall be exactly equal to the maximum amounts allowed under section 415 of the Internal Revenue Code and regulations thereunder. If there is any discrepancy between -4- the provisions of this section 3.07 and the provisions of section 415 of the Internal Revenue Code and regulations thereunder, such discrepancy shall be resolved in such a way as to give full effect to the provisions of section 415 of the Code. (Effective date January 1. 1987.) -5- ARTICLE IV INVESTMENT OF CONTRIBUTIONS Section 4.01. The Trustee shall receive, hold, invest, and reinvest all contributions and monies of this Trust and shall exercise the judgment and care under the circumstances then prevailing, which individuals of pru- dence, discretion, and intelligence familiar with such matters exercise in a like situation and shall diversify such investments to minimize the risk of large losses. Section 4.02. The Trustee is authorized and empow- ered to invest and reinvest the principal and income, in any common or preferred stocks, bonds, notes, mortgages, real or personal property, including, but not limited to, pooled accounts of a bank or trust company maintained exclu- trust certificates, mutual funds, Insurance Contracts, and sively for Qualified Plans. In making such investments or reinvestments, the Trustee has wide latitude in the selec- ties or other property of a character authorized or required tion of investments and shall not be restricted to securi- by applicable state law for trust investments. The Trustee may keep whatever portion of the Trust Fund in cash or cash equivalents as it may from time to time deem to be in the best interest of the Participants. -6- VALUATION OF ASSETS ARTICLE V Section 5.01. Account for each Participant (including any terminated The Employer shall maintain an than his vested accrued benefit). The total value of a Participant who receives a distribution of an amount less Participant's Account shall be determined for each Plan Year the Trust Fund and contributions accrued but not yet made, and shall include the value of the Participant's share in on behalf of the Participant for the Plan Year. Section 5.02. The Trustee shall determine as of the end of the Plan Year the net value of the Trust Fund and convey this information to the Employer. In determining the net value, the Trustee shall value all assets at their fair market value as of the close of the first business day on or immediately following the end of the Plan Year. Section 5.03. As soon as practical after the end of each Plan Year, the Employer shall convey to each Parti- cipant the total value of such Participant's Account as determined in Section 5.02. However, neither the mainte- nance of Accounts nor the allocations of credits to accounts shall operate to vest in any Participant any right to or interest in any assets of the Trust except as the Trust 0 specifically provides. '0 -7- a ARTICLE VI NORMAL PENSION BENEFITS each Participant who retires on the Normal Retirement Date Section 6.01. Normal Retirement. The Account of shall be payable as provided in Section 6.05. The Account of each Participant shall be fully vested i.e., 100% non- forfeitable on and after the Normal Retirement Date. shall cease to be an Employee within five years prior to his Section 6.02. Early Retirement. If a Participant Normal Retirement Date, such shall be deemed an Early Re- tirement for the purposes of this Trust. The vested portion vided in Section 6.05 and payments shall commence at or of the Account of such Participant shall be payable as pro- pant shall elect, but not later than the Participant's after the date of cessation of employment, as the Partici- Normal Retirement Date. The Trustee shall take such action as shall be necessary to give effect to the election made by the Participant. Pension payments shall be of whatever amount shall be provided under the option selected, deter- mined as of the date the Participant ceased to be an Employ- ee. Section 6.03. Late Retirement. A Participant may continue in active employment after his Normal Retirement retirement, a Participant may continue to participate under Date. After his Normal Retirement Date and until his actual this Trust and shall continue to accrue benefits and share late retirement shall be governed by Section 6.05. in Employer contributions. The receipt of benefits upon a medical examiner selected by the Plan Administrator certi- Section 6.04. Disability of a Participant. (a) If fies that a Participant is totally and permanently disabled, such Participant's account shall be fully vested. and permanent disability" means a physical or mental condi- "Total or mental disorder which renders him incapable of continuing tion of a Participant resulting from bodily injury, disease the Participant is reasonably suited by reason of training, in the employment of the Employer in a capacity for which education, and experience as determined by the Plan Adminis- uniform and consistent basis for all Participants. trator. Disability shall at all times be determined on a (b) Upon determination that a Participant is total- ly and permanently disabled, such Participant's account (now fully vested) shall be payable as provided in Section 6.05. Section 6.05. Normal, Early or Late Retirement or Disability Benefit. The Employer shall direct the Trustee to make the payment of any benefits provided under this 0 time prescribed by Section 6.07. The form of the benefit Trust upon the event giving rise to such benefit within the provided shall be determined as follows: -0- disabled Participant under this Trust shall be an annuity (a) The normal pension payable to a retired or which provides monthly payments commencing on the Partici- pant's annuity starting date and continuing thereafter throughout his lifetime with the guarantee that no less than 120 monthly payments shall be made. pension shall be equal to that amount of annuity that can be (b) The monthly amount of a Participant's normal provided by the actuarial value of the vested portion of the Participant's account. optional forms of benefit distribution available subject to (c) The Trustee, in its sole discretion, may make a written request by the Participant and subject to the provisions of the Insurance Contract, if any, then in effect for the Trust. The optional forms shall be the actuarial value of the normal form of payment or retirement benefits and may be more than or less than the normal form and may or may not provide for a period certain. Section 6.06. Death of a Participant. and prior to his retirement, such participating Employee's (a) If a Participant shall die while an Employee Account shall be fully vested. a (b) If a Participant ceases to be an Employee either by way of retirement or for any other reason other than death and then dies before beginning to receive in pant's Beneficiary shall receive a death benefit in the form benefits the vested portion of his Account, the Partici- of life annuity payable monthly and equal in actuarial value to the vested portion of such Account. mal, or Late) and has begun receiving benefits and then dies (c) If a Participant retires (whether Early, Nor- before the guaranteed portion of such benefits, if any, has been fully paid, any remaining guaranteed benefits will be paid to the Participant's Beneficiary as they become due. (d) The Trustee, in its sole discretion, may make optional forms of benefit distribution available subject to visions of the Insurance Contract, if any, then in effect a written request by the Beneficiary and subject to the pro- value of the normal form of payment or of remaining guaran- for the Trust. The optional forms shall be the actuarial and may or may not provide for a period certain. teed benefits and may be more or less than the normal form Section 6.07. Payment of benefits provided by this Article shall commence upon the event giving rise to such 0 later than sixty (60) days after the close of the Plan Year benefit, or as soon as administratively feasible, but no in which the latest of the following events occur: Normal Retirement Age; (a) the date on which the Participant attains (b) the tenth (10th) anniversary of the date on which the Participant commenced participation in this Plan; (c) the date the Participant terminates his Serv- ice with the Employer; (d) the date specified under a written election made by the Participant. If the amount of the payment required to commence on the date determined above cannot be ascertained by such date, the time of the payment with respect to such date may be delayed no later than sixty (60) days after the earliest date on which the amount could be ascertained. If a Parti- cipant elects to defer any benefit payment beyond the dates specified in (a), (b), or (c), above, such election must be in writing and must describe the benefit and date on which such benefit shall commence. contrary, a Participant's benefits shall be distributed to Notwithstanding any provision in the Trust to the him not later than April 1 of the calendar year following the later of (i) the calendar year in which the Participant attains age seventy and one-half (70-1/2) or (ii) the calen- 0 dar year in which he retires. Alternatively, distributions to a Participant must begin no later than the April 1 following such calendar year and must be made over the life Participant's designated Beneficiary). of the Participant (or the lives of the Participant and the For purposes of this section, the life expectancy of a Participant and a Participant's spouse (other than in more frequently than annually, and in accordance with such the case of a life annuity) may be redetermined, but not rules as may be prescribed by Treasury regulations. Further, be computed using the return multiples of Regulation 1.72-9. life expectancy and joint and last survivor expectancy shall (Effective January 1, 1987.) Section 6.08. Any annuity contract distributed under this Trust shall be nontransferable. -10- ARTICLE VI1 BENEFICIARY Section 7.01. (a) Each eligible Employee shall, in his application for participation, designate the Benefi- ciary or Beneficiaries to whom he wishes paid any amount payable to his Beneficiary in accordance with the terms of this Trust as a result of his death. Each Participant shall have the right at any time and from time to time to direct the Trustee to change the designation of Beneficiary. The Trustee shall perform such acts as may be necessary to give effect to the instructions of the Participants. The Trustee may require that the Participant's spouse co-sign any elec- tion made by the Participant which designates a Beneficiary other than the spouse. married Participant dies while in the Service of the Employ- (b) Unless otherwise elected under (a) above, if a er after the Early or Normal Retirement Date, the surviving spouse shall be deemed the designated Beneficiary. (a) or (b) above, the estate of the Participant shall be (c) In the absence of a Beneficiary under either deemed to be the designated Beneficiary. -1 1- ARTICLE VI11 TERMINATION OF EMPLOYMENT an Employee other than by death, disability or retirement Section 8.01. If a Participant shall cease to be pant shall be governed by the following provisions of this (other than early retirement), the rights of such Partici- Article, and such rights shall be in lieu of all other benefits otherwise available under the Trust. Section 8-02. As of the date a Participant ceases to be an Employee for any reason other than death, disabili- ty or retirement (other than early retirement), he shall be entitled to a benefit consisting of the vested portion of pursuant to Sections 8.03 and 8.04. The vested portion of all amounts accrued to his account which shall be payable any Participant's Account shall be a percentage of the total amount credited to his Account determined on the basis of the Participant's number of Years of Service according to the following schedule: Vesting Schedule Years of Service Percentage 0 to 2 3 4 5 6 7 a 9 10 or more 3 0% 0% 4 0% 50% 6 0% 7 0% 100% 9 0% 80% percentage of his interest in the Plan shall not be reduced The computation of a Participant's nonforfeitable as the result of any direct or indirect amendment to this Article. In the event that the Plan is amended to change or modify any vesting schedule, a Participant with at least three (3) Years of Service as of the expiration date of the election period may elect to have his nonforfeitable per- centage computed under the Plan without regard to such amendment. If a Participant fails to make such election, then such Participant shall be subject to the new vesting schedule. The Participant's election period shall commence on the adoption date of the amendment and shall end sixty (60) days after the latest of: (1) the adoption date of the amend- ment, (ii) the effective date of the amend- ment; or -12- e written notice of the amendment from the (iii) the date the Participant receives Employer or Administrator. Employee, the Employer shall immediately notify the Trustee Section 8-03. when a Participant ceases to be an of that fact and shall also notify the Trustee of the date such ?articipant ceased to be an Employee and the amount of the benefits for which the Participant is eligible. The Employer may direct the Trustee to segregate the amount of the vested portion of such terminated Participant's Account erally insured savings account, certificate of deposit, and invest the aggregate amount thereof in a separate, fed- common or collective trust fund of a bank or a deferred annuity. In the event the vested portion of a Participant's Account is not segregated, the amount shall remain in a sep- arate account for the terminated Participant and share in allocations of earnings and losses per Section 3.03, until such time as a distribution is made to the terminated Parti- which is not vested shall be used to reduce the Employer's cipant. The amount of the terminated Participant's Account contributions to this Trust in accordance with the terms of this Trust at such time as the amount becomes a Forfeiture. In the event that the amount of the vested portion of the terminated Participant's Account equals or exceeds the cash surrender value of any Insurance Contract(s), the Trustee, when so directed by the Employer, and agreed to by the terminated Participant, shall assign, transfer, and set over to such terminated Participant all Insurance Contracts on his life in such form or with such endorsements, so that the settlement options are limited to the provisions of Sec- tion 6.04, as the Employer may. in its discretion, direct, restricting the right of the terminated Participant to sur- render, assign or otherwise realize cash on the Insurance Contract prior to Normal Retirement Date. In the event that the terminated Participant's vested portion does not at tract(s), if any, the terminated Participant may, with the least equal the case surrender value of the Insurance Con- needed to make the distribution equal to the value of the approval of the Employer, pay over to the Trustee the sum may borrow the cash surrender value of the Contract( s) from Contract(s) being assigned or transferred, or the Trustee ed Participant. the insurer and then assign the Contract(s1 to the terminat- Section 8.04. Distribution of the funds due to a terminated Participant shall be made on the occurrence of an nated Participant remained in the employ of the Employer event which would result in the distribution had the termi- (upon the Participant's death, or Early or Normal Retire- ment). However, if the Participant so requests, the Em- 0 portion of the terminated Participant's Account to be pay- ployer shall direct the Trustee to cause the entire vested able to such terminated Participant. -1 3- 0 BREAKS IN EMPLOYMENT ARTICLE IX Section 9.01. In the event of termination of em- ployment of a Participant and his subsequent reemployment by the Employer, he shall be considered a new Employee for the purposes of this Trust with respect to the new period of em- ployment. Eligibility and benefits shall be determined for the new period of employment with respect to the date of re- employment. Such benefits shall be unaffected by any bene- fits which may have been made available to him at the time of his previous termination of employment. the United States or of any states thereof for the duration Section 9.02. Active duty in the armed forces of of a national emergency or a state of war, shall not consti- tute termination of employment of a Participant if he re- turns to the employment of the Employer within ninety (90) days, or such longer period during which his employment rights are protected by law, after release from such active duty, any leave of absence authorized by the Employer shall not constitute a termination of employment. provided the Participant returns to the service of the Employer on or be- fore the expiration date of the leave of absence. During any such period, he shall not be deemed to be in receipt of compensation and the Employer will not make contributions to Participant shall be deemed to be in the service of the the Trust on his behalf. However, during such period, the Employer for vesting purposes. 0 -1L- 0 NO REVERSION ro EMPLOYER ARTICLE X Section 10.01. Except as provided in Section 3.05, tion of all liabilities with respect to Employees and their it shall be impossible, at any time prior to the satisfac- Beneficiaries under this Trust, for any part of the corpus or income to be used for or diverted to. purposes other than for the exclusive benefit of the Participants or their Beneficiaries. The Employer shall not be entitled to recover any part of its contributions to this Trust. -1 5- ARTICLE XI RIGHT TO ALTER, AMEND OR REVOKE Section 11.01. The Employer reserves the right to terminate this Trust, which termination shall become ef- fective upon filing with the Trustee, a written notice of such election to terminate. amend this Trust at any time to any extent that it may deem Section 11.02. The Employer reserves the right to advisable without the consent of any Participant or any Ben- eficiary provided, however, that no amendment to this Trust shall deprive any Participant of any vested interest, nor the Trustee hereunder except with its consent. shall such amendment increase the duties and obligations of Section 11.03. This Trust is created with the in- Pension Trust under Section 41L of the Internal Revenue Code tent and purpose that it shall qualify as a Governmental of 1986, as amended, respecting governmental plans. The manner as may be necessary or advisable so that said Trust Employer reserves the right to amend this Trust in such may so qualify under the provisions of the Internal Revenue Code in force on the effective date and as may thereafter be changed or amended, or under any other related provisions of said Code. 0 Section 11.04. Any amendment to this Trust shall be set out in writing executed on behalf of the Employer. Any statement in such amendment that it was authorized by of such action by the Common Council, and from and after the the Common Council shall be accepted by the Trustee as proof Trust shall be deemed to have been so amended. filing of such amendment in writing with the Trustee, this Section 11.05. Upon termination or partial termi- nation of this Trust, the accrued benefit of each Partici- pant as of the date of termination shall become fully vested and shall not thereafter be subject to forfeiture. The amount to be distributed to each Participant may be placed after the amount becomes available with the Participant as in a nontransferable deferred annuity within sixty (60) days owner. Alternatively, the Participant may indicate to the Employer a preference for an optional method of distribution as provided in Section 6.05 of this Trust. Upon complete after payment of all expenses, such funds shall be allocated termination, if after such distribution any funds remain pro rata based on each Participant’s Account balance on the date of the termination of the plan and distributed, as if added to the accrued benefit of each Participant, as set forth in this section. -16- PROVISIONS WITH RESPECT ro THE TRUSTEE ARTICLE XI1 Section 12.01. The Trustee accepts the Trust here- by created only upon the terms and conditions of this Trust, including the following terms and conditions: and the survivors of it shall be the Trustees of his Trust (a) The named Trustee and its successors in trust and, as such it is fully authorized and empowered, subject to the terms, provisions and restrictions of this Trust, to manage, control, handle, or dispose of the whole or any part of the funds and policies which it shall receive in its capacity as Trustee herein; to obtain, maintain, make appli- cation for, transfer, assign, amend, deal with, and handle all Insurance Contracts and other funding vehicles necessary in carrying out this Trust; to borrow money against any pol- icy held hereunder provided such borrowing shall be on a ratable basis among all policies so held; and to conflict, defend, prosecute or compromise any claim by or against the Trust. guarding and administration of the Trust estate in accord- (b) The Trustee shall be liable only for the safe- ance with the provisions of this Trust, and any amendments or supplements thereto, and no other or further duties or responsibilities shall be implied. 0 (c) The Trustee shall be fully protected in taking any action upon any paper or document believed by the Trus- tee to be genuine and to have been properly signed and pre- sented. The Trustee may consult with counsel (who may be counsel for the Employer) selected by the Trustee and the Trustee shall be fully protected for any action taken, suf- fered, or omitted in good faith in accordance with the opin- ion of said counsel. It shall be the duty of the Trustee to determine the identity and/or mailing address of any Parti- cipant or any person entitled to benefits hereunder, such identity and/or mailing address to be furnished by the Em- ployer, and in making any payments under this Trust and Trustee shall be under no liability for making any payments in accordance with certification by the Employer. (d) The Trustee shall not be under any liability or responsibility for the failure to effect any of the ob- jects of this Trust by reason of the refusal of any issuing by the Trustee. Insurance Company or companies to take any action requested (e) The Trustee shall serve and receive such com- pensation as may be agreed upon by the Trustee and the Em- ployer. The Trustee shall be entitled to reimbursement by the Employer for all proper expenses incurred by it in the -17- the cost of any litigation hereunder. performance of its duties as Trustee hereunder, including (f) Whenever in the administration of this trust the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking, suffering, or omitting any action hereunder, said matter may be deemed to be conclusively proved and established by a certificate in writing if signed by a duly authorized official of the Employer. Any such certification shall be a complete guar- antee to the Trustee in connection with any such action on the faith thereof. be deposited in the name of the Trustee in such bank or (g) All funds in the possession of the Trustee may banks as it shall elect. Any funds so deposited in any bank Trustee. shall be subject to withdrawal on the signature of any one (h) The Trustee shall be the complete and absolute owner of the Insurance Contracts and/or policies held in the Trust estate and or each and every incident of ownership thereof, including the power to sell or assign any such pol- icy; to receive all dividends on any such policy, to borrow money upon such policy and to hypothecate the sane to secure any such loan; to repay any loans; to surrender any such policies for cash; to receive all payments of any kind which 0 may be payable to the Trustee by the terms of any policy without limitation of the foregoing to exercise any and all held in trust, to change the amount of any policy; and, of the rights, options and privileges which belong to the absolute owners of a policy, or which are granted by the terms of any policy, or by the terms of this Trust, or are permitted by any Insurance Company. Section 12.02. The Trustee shall keep accurate and detailed records of its administration of the Trust, which by the Employer or the Employer's designated representa- records shall be open to inspection at all reasonable times tives. A Participant shall also have the right to inspect the records of the Trustee insofar as they relate to his participation at reasonable times. Within sixty (60) days following the close of each calendar year, or at such other date as may be agreed upon between the Employer and the Trustee, the Trustee shall file with the Employer a written statement and report of receipts and disbursements and of the balance, if any, on hand. Upon the expiration of ninety (90) days from the date of filing such written statement and report, the Trustee shall be forever released and discharged the propriety of its acts or transaction shown in such from any liability or accountability to anyone in respect to statement and report thereof, except with respect to such acts or transactions as to which the Employer or any Parti- cipant shall within such ninety (90) days period file writ- -18- ten objections, and neither the Employer nor any participant entitled to any further or different accounting by the Trus- nor any other person shall have the right to demand or be tee. Section 12.03. Notwithstanding anything herein contained to the contrary, neither the Employer nor the ness, validity, sufficiency, or effect of any Insurance Con- Trustee shall have any responsibility for the form, genuine- tract at any time included in the Trust estate, or for the act of any person or persons which may render any such In- surance Contract null and void, or for the failure of any Insurance Company to pay the proceeds and avails and bene- fits of any such Insurance Contract as and when the same shall become due and payable, or for any delay occasioned by Contract, or if for any reason whatsoever any Insurance Con- any restriction or provision contained in any such Insurance ble; provided, however, that nothing contained herein shall tract or policy shall lapse or otherwise become uncollecti- relieve the Trustee from liability for any willful act or acts of misfeasance. Section 12.04. In the event that any dispute shall delivery of any policies or other property shall be made by arise as to the persons to whom payment of any funds and/or delivery until such dispute shall have been determined by a the Trustee, the Trustee may withhold such payment and/or court of competent jurisdiction or shall have been settled by the parties concerned. Section 12.05. The Trustee is hereby authorized to execute all necessary receipts and releases to the issuing Insurance Company or Companies concerned, and shall have power to institute actions or suits to collect any sums that may appear to be due to the Trustee under any contracts; provided, however, that the Trustee shall not be required to maintain any litigation unless it has in its possession funds sufficient for that purpose or has been indemnified to its satisfaction for counsel fees, costs and other liabili- action on its part. ties to which it may. in its judgment, be subjected by such to give any bond or other security for the faithful perform- Section 12.06. The Trustee shall not be required ance of its duties hereunder. Section 12.07. A Trustee or Trustees may be re- moved by the Employer by the delivery to such Trustee of a certified copy of a resolution of the City Council of the Employer to that effect. A Trustee or Trustees may resign as Trustees hereunder upon written notice to that effect de- become effective upon the date specified in such resolution livered to the Employer. Such removal or resignation shall or such written notice, as the case may be, which date shall -19- not be less than thirty (30) days subsequent to the delivery of such copy of resolution or written notice. In the event of such removal or resignation. a successor Trustee or Trus- tees shall be appointed by the Employer through action of its City Council and such successor Trustee or Trustees. delivered to the Employer, shall become vested with all the upon accepting such appointment by an instrument in writing or Trustees hereunder, as if he, they or it had originally rights, powers, duties, privileges and immunities as Trustee been designated as Trustee or Trustees in this Trust. Upon such appointment and acceptance, the replaced Trustee or Trustees shall make any endorsements, assignments, convey- ances and execute any other instruments necessary to trans- policies and other property held under the Trust. fer to the successor Trustee or Trustees all of the funds, -20- PROVISIONS RELATING TO INSURANCE COMPANIES ARTICLE XI11 sue any Insurance Contracts for the purposes of this Trust Section 13.01. No Insurance Company which may is- shall be required to take or permit any action contrary to the provisions of said Insurance Contracts, nor shall such Insurance Company be deemed to be a party to this Trust for any purpose, nor shall it be responsible for the validity of this Trust. Section 13.02. NO such issuing Insurance Company shall be required to look into the terms of this Trust or question any action of the Trustee nor be responsible to see that any action of the Trustee is authorized by the terms of this Trust. Section 13.03. Any such issuing Insurance Company shall be fully discharged from all liability in connection with any change made in any policy upon the signature of any one Trustee or with respect to any action it permits to be taken with respect to any Insurance Contract upon the signa- ture of any one Trustee. Any issuing Insurance Company shall be discharged from all liability for any amount paid be obliged to see to the distribution or further application to the Trustee, and no such issuing Insurance Company shall of any monies so paid by it. documents requiring the signature of the Trustee may be Section 15.04. Any and all certificates or other executed by any one Trustee. When so executed, any such document shall be accepted by the issuing Insurance Company as conclusive evidence of any of the matters mentioned in protected in taking or permitting any action on the faith this Trust, and any such Insurance Company shall be fully hereof and shall incur no liability or responsibility for so doing. -21- MISCELLANEOUS PROVISIONS ARTICLE XIV Section 14.01. If any money shall be payable by the Trustee under any of the provisions of this Trust on be- half of a Participant who has died and if this Trust pro- vides that such payment shall be made to the Participant's estate and if such Participant has no estate pending in the probate court of the county of his residence, then the Trus- tee shall have authority, if it so elects, to make such pay- ment to the surviving spouse of such deceased Participant, or if there be no surviving spouse, to the then living children in equal shares; but nothing herein shall prevent the Trustee from insisting upon the opening of administra- duly appointed executor or administrator in the event the tion proceedings and the delivery of any such funds to a Trustee shall decide that payment to such a legally author- ized personal representative is preferable for the Trustee. Section 14.02. Neither the establishment of the Trust hereby created, nor any modification thereof, nor the creation of any fund or account, nor the payment of any ben- efits shall be construed as giving any Participant or any person whomsoever claiming by or through the Participant or otherwise any legal or equitable right as against the Em- ployer or the Trustee unless the same shall be specifically be construed or interpreted as giving any Employee the right provided for in this Trust. Nothing herein contained shall to be retained in the sevice of the Employer or shall affect ment and terminate the service of any Employee at any time. or impair the right of the Employer to control its employ- but not until, in accordance with the provisions hereof, Section 14.03. This Trust shall terminate when. this Trust is revoked in its entirety, or there are no con- tracts subject hereto and the Employer has fulfilled all of his obligations hereunder. Section 14.04. The Trust shall be binding upon and Trustee and its successors in office, and the Participants inure to the benefit of the Employer and its successors, the in accordance with and subject to the limitations of this instrument. ble for the solvency of any Insurance Company from which an Section 14.05. The Trustee shall not be responsi- Insurance Contract shall have been purchased under this Trust. number of counterparts, each of which shall be deemed to be Section 14.06. This Trust may be executed in any an original, and the counterparts shall constitute one and the same instrument, which shall be sufficiently evidenced m by any one thereof. -22- IN WITNESS WHEREOF, the Employer has caused this agreement to be signed the date first above written by its duly authorized officials and the Trustee has also signed this agreement. ATTEST : CITY OF MUSKEG0 City Clerk By: Mayor TRUSTEES By: By : -23- SCHEDULE A EMPLOYER'S CONTRIBUTIONS Effective Date Public Works Employees All Other Employees 111 /aa 5.7% of Compensation 64$/hour of service City HallILibrary and Telecommunicators Units The Employer agrees to pay the employees' cost of administrating the plan. Department of Public Works and Non-Represented Employees The Employer agrees to pay up to an amount equal to one percent (17,) of the value of the employees' individual retirement account towards the employee's cost of administrating the plan.