CCR1987056COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #56-87
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
hereto.
approve the Restated City of Muskego Pension Trust as attached
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 DAY OF b&] , , 1987.
CITY OF MUSKEG0 PENSION TRUST
RESTATED 1986
THIS AGREEMENT, hereby made and entered into this
day of
of Muskego, (herein referred to as the "Employer"), and the
, 1987, by and between the City
Trustee designated herein and any and all successors to such
Trustee.
WITNESSETH
City of Muskego Pension Trust, (hereinafter referred to as
WHEREAS, the Employer heretofore established the
the "Trust" 1, 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
WHEREAS, under the terns of the Trust, the Employer
has the ability to amend the Trust provided that such arnend-
ment is set out in writing and executed by the Employer; and
WHEREAS, since the Effective Date of the Trust, the 0 various amendments to the Trust from time to time have not been incorporated into a complete restated trust document;
NOW, THEREFORE, effective January 1, 1987, the Em-
ployer and the Trustee, in accordance with the provisions Of
various amendments made to it between the Effective Date and
the Trust, hereby restate the Trust to incorporate all the
January 1, 1987, and provide as follows
. PAGE
Article I . Definitions ................................ 1
Article I1 . Eligibility And Participation ............. 3
Article I11 . Contributions And Allocations ............ 4
Article IV . Investment Of Contributions ............... 5
Article V . Valuation Of Assets ........................ 6
Article VI . Normal Pension Benefits ................... 7
Article VI1 . Beneficiary .............................. 10
Article VI11 . Termination Of Employment ............... 11
Article IX . Breaks In Employment ...................... 13
Article X . No Reversion To Employer ................... 14
Article XI . Right To Alter, Amend or Revoke ........... 15
Artlcle XI1 . Provisions With Respect To The Trustee ... 16 0 Article XI11 . Provisions Relatina To Insurance
Companies 20
. ............................
Article XIV . Miscellaneous Provisions ................. 21
Schedule A . Employer's Contributions .................. 23
ARTICLE I
DEFINITIONS
to each Participant, the value of the account maintained on
Section 1.01. "Account" shall mean, with respect
behalf of a Participant to which Employer contributions are
made from time to time under this Trust.
respect to any date, the age at nearest birthday on such
Section 1-02. "Age" shall mean, as determined with
date.
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.
Employee paid on an hourly basis, the total of his basic
"Compensation" shall mean, for an
weekly wage payments from the Employer, including all
an Employee paid on a salary basis, the total of his basic
amounts paid for overtime. "Compensation" shall mean, for
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
1, 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
calendar year. Neither elected officials of the Employer
nor employees covered under the Wisconsin Retirement Fund or
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.
Section 1.08. "Entry Date" shall mean January 1
and July 1 of each year.
of a Participant's Account that is not vested, and occurs on
Section 1.09. "Forfeiture" shall mean that portion
the earlier of
of a Participant's Account, or
(a) the distribution of the entire vested portion
Participant incurs a break in Employment pursuant to Article
(b) the last day of the Plan Year in which the
IX.
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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. "Insurance Contract" shall mean a
life insurance, annuity or variable annuity contract or any
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
consecutive month period beginning on January 1st ending on
December 31st of each year.
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.
Section 1.16. "Year of Service" for vesting ?ur-
poses pursuant to Section 8.02 shall mean a period of serv-
ice based on an Employee's actual period of employment from
the beginning to the end of a Plan Year, provided that the
Employee remains an Elgible Employee during such Plan year
pursuant to Sections 1.05 and 2.01(a) of this Trust.
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ARTICLE I1
ELIGIBILITY AND PARTICIPATION
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:
(a) He shall have been an Employee continuously
Entry Date. For the purpose of determining eligibility,
throughout the period of one year immediately preceding such
continuity of service shall not be deemed to be interrupted
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
during which his employment rights are protected by law.
for ninety (90) days thereafter, or for such longer period
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 (L5) 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.
to become a Participant shall signify his acceptance of the
Section 2.03. Every eligible Employee who desires
terms and conditions of this Trust by executing a written
application on a form provided for the purpose by the Trus-
tee and shall execute such additional application forms as
may be required by any Insurance Company designated by the
Trustee.
Section 2.04. If an eligible Employee shall not
have performed all acts required of him for participation in
the Trustee shall have notified him of his eligibility, he
this Trust within sixty (60) days after the date on which
may not become a Participant prior to the first Entry Date
thereafter. preceding which he shall have perforned such
acts, and then only provided he is an eligible Employee.
Trustee such information in the EmployeP's possession as the
Section 2.05. The Employer agrees to furnish the
Trustee shall require from time to time to perform the
duties under this Trust.
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',- A
ARTICLE I11
CONTRIBUTIONS AND ALLOCATIONS
0 Section 3.01. Subject to the right of the Employer
to alter, amend, or terminate the trust, the Employer shall
contribute the amount, reduced by any forfeitures, designat-
ed in Section 3.@6. 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-
tion for each Plan Year to the Trustee within the time pre-
scribed by law.
losses of the trust fund shall be allocated on a pro rata
Section 3.03. The allocation of net earnings and
basis based on each Participant's Account balance at the end
of each Plan Year.
the Employer's contributions under Section 3.01.
Section 3.04. Forfeitures shall be used to reduce
by the Employer or income on such contribution revert to the
Section 3.05. In no event shall any contribution
Employer except that any contribution made because of a
mistake of fact mav be returned. 0 Section 3.06. The amount of the Employer's con-
.1 be the amount on behalf of each partici- - tribuzion shal
pating Employee called for in separate written agreements
contributions shall be as shown in Schedule A attached
then in effect between the Employer and its Enployees. Such
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.
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ARTICLE IV
INVESTMENT OF CONTRIBUTIONS
Section 4.01. The Trustee shall receive, hold,
Trust and shall exercise the judgment and care under the
invest, and reinvest all contributions and monies of this
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-
tion of investments and shall not be restricted to securi-
ties or other property of a character authorized or required
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.
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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 Fle-
tirernent 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
Date. After his Normal Retirement Date and until his actual
retirement, a Participant may continue to participate under
this Trust and shall continue to accrue benefits and share
in Enployer contributions. The receipt of benefits upon
late retirement shall be governed by Section 6.05.
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. "Total
and permanent disability" means a physical or mental condi-
tion of a participant resulting from bodily injury, disease
or mental disorder which renders him incapable of continuing
in the employment of the Employer in a capacity for which
the Participant is reasonably suited by reason of training,
education, and experience as determined by the Plan Adminis-
trator. Disability shall at all times be determined on a
uniform and consistent basis for all Participants.
(b) Upon determination that a Participant is total-
fully vested) shall be payable as provided in Section 6.05,.
ly and permanently disabled, such Participant's account (now
Disability Benefit. The Employer shall direct the Trustee
Section 6.05. Normal, Early or Late Retirement or
to make the payment of any benefits provided under this
Trust upon the event giving rise to such benefit within the
provided shall be determined as follows:
time prescribed by Section 6.07. The form of the benefit
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__A
0
0
VALUATION OF ASSETS
ARTICLE V
Section 5.01.
Account for each Participant (includinq anv terminated
The Employer shall maintain an
Participant who receives a- distribution of an- amount less
than his vested accrued benefit). The total value of a
Participant's Account shall be determined for each Plan 'fear
and shall include the value of the Participant's share in
the Trust Fund and contributions accrued but not yet made,
on behalf of the Participant for the Plan Year.
the end of the Plan Year the net value of the Trust Fund and
Section 5.02. The Trustee shall determine as of
net value, the Trustee shall value all assets at their fair
convey this information to the Employer. In determining the
market value as of the close of the first business day on or
immediately following the end of the Plan Year.
of each Plan Year, the Employer shall convey to each Parti-
Section 5.03. AS soon as practical after the end
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
specifically provides.
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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.
(b) The monthly amount of a Participant's normal
pension shall be equal to that amount of annuity that can be
provided by the actuarial value of the vested portion of the
Participant's account.
(c) The Trustee, in its sole discretion, may make
optional forms of benefit distribution available subject to
provisions of the Insurance Contract, if any, then in effect
a written request by the Participant and subject to the
value of the normal form of payment or retirement benefits
for the Trust. The optional forms shall be the actuarial
may not provide for a period certain.
and may be more than or less than the normal form and may or
Section 6.06. Death of a Participant
(a) If a Participant shall die while an Employee
Account shall be fully vested.
and prior to his retirement, such participating Employee's
0 (b) If a Participant ceases to be an Employee
either by way of retirement or for any other reason other
benefits the vested portion of his Account, the Partici-
than death and then dies before beginning to receive in
pant's Beneficiary shall receive a death benefit in the form
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
paid to the Participant's Beneficiary as they become due.
been fully paid, any remaining guaranteed benefits will be
(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
Article shall commence upon the event giving rise to such
Section 6.07. Payment of benefits provided by this
benefit, or as soon as administratively feasible, but no
in which the latest of the following events occur:
later than sixty (60) days after the close of the Plan Year a
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Normal Retirement Age;
(a) the date on which the Participant attains
which the Participant commenced participation in this Plan;
(b) the tenth (10th) anniversary of the date on
ice with the Employer;
(c) the date the Participant terminates his Serv-
made by the Participant.
(d) the date specified under a written election
on the date determined above cannot be ascertained by such
If the amount of the payment required to commence
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.
Section 6.08. Any annuity contract distributed
under this Trust shall be nontransferable.
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ARTICLE VI1
BENEFICIARY e 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
Trustee shall perform such acts as may be necessary to give
the Trustee to change the designation of Beneficiary. The
effect to the instructions of the Participants. The Trustee
may require that the Participant's spouse co-sign any elec-
other than the spouse.
tion made by the Participant which designates a Beneficiary
(b) Unless otherwise elected under (a) above, if a
married Participant dies while in the Service of the EmDloy-
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.
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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.
to be an Employee for any reason other than death, disabili-
Section 8.02. As of the date a Participant ceases
ty or retirement (other than early retirement), he shall be
entitled to a benefit consisting of the vested portion of
all amounts accrued to his account which shall be payable
pursuant to Sections 8.03 and 8.04. The vested portion of
any Participant's Account shall be a percentage of the total
the Participant's number of Years of Service according to
amount credited to his Account determined on the basis of
the following schedule:
Vesting Schedule
Years of Service Percentage
0 to 2
3
4
5
6
7
8
9
10 or more
3 0%
0%
40%
50%
60%
70%
90%
100%
80%
percentage of his interest in the Plan shall not be reduced
The computation of a Participant's nonforfeitable
Article. In the event that the Plan is amended to change or
as the result of any direct or indirect amendment to this
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
on the adoption date of the amendment and shall end sixty
schedule. The Participant's election period shall commence
(60) days,after the latest of:
(1) the adoption date of the amend-
ment ;
(ii) the effective date of the amend-
ment; or
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written notice of the amendment from the
(iii) the date the Participant receives
Employer or Administrator.
Section 8.03. When a Participant ceases to be an
Employee, the Employer shall immediately notify the Trustee
of that fact and shall also notify the Trustee of the date
such Participant 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
and invest the aggregate amount thereof in a separate, fed-
the vested portion of such terminated Participant's Account
erally insured savings account, certificate of deposit,
common or collective trust fund of a bank or a deferred
Account is not segregated, the amount shall remain in a sep-
annuity. In the event the vested portion of a Participant's
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-
cipant. The amount of the terminated Participant's Account
which is not vested shall be used to reduce the Employer's
contributions to this Trust in accordance with the terms of
this Trust at such time as the amount becomes a Forfeiture.
of the terminated Participant's Account equals or exceeds
In the event that the amount of the vested portion
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 1r.surance 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(s) to the terminat-
Section 8.04. gistribution of the funds due to a
terminated Participant shall be made on the occurrence of an
event which would result in the distribution had the termi-
nated Participant remained in the employ of the Employer
(upon the Participant's death, or Early or Normal Retire-
ment). However, if the Participant so requests, the Zm-
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.
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BREAKS IN EMPLOYMENT
ARTICLE IX
ployment of a Participant and his subsequent reemployment by
Section 9.01. In the event of termination of em-
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-
of his previous termination of employment.
fits which may have been made available to him at the time
Section 9.02. Active duty in the armed forces of
the United States or of any states thereof for the duration
of a national emergency or a state of war, shall not consti-
tute termination of employment of a Participant if he re-
days, or such longer period during which his employment
turns to the employment of the Employer within ninety (90)
duty; any leave of absence authorized by the Employer shall
rights are protected by law, after release from such active
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
the Trust on his behalf. However, during such period, the
Participant shall be deemed to be in the service of the
Employer for vesting purposes.
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NO REVERSION TO EMPLOYER
ARTICLE X
it shall be impossible, at any time prior to the satisfac-
Section 10.01. Except as provided in Section 3.05,
tion of all liabilities with respect to Employees and their
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.
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RIGHT TO ALTER, AMEND OR REVOKE
ARTICLE XI
terminate this Trust, which termination shall become ef-
Section 11.01. The Employer reserves the right to
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
shall such amendment increase the duties and obligations of
the Trustee hereunder except with its consent.
tent and purpose that it shall qualify as a Governmental
Section 11.03. This Trust is created with the in-
Pension Trust under Section L1.4 of the Internal Revenue Code
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.
Section 11.04. Any amendment to this Trust shall
Any statement in such amendment that it was authorized by
be set out in writing executed on behalf of the Employer.
the Common Council shall be accepted by the Trustee as proof
of such action by the Common Council, and from and after the
filing of such amendment in srriting with the Trustee, this
Trust shall be deemed to have been so amended.
nation of this Trust, the accrued benefit of each Partici-
Section 11.05. Upon termination or partial termi-
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
in a nontransferable deferred annuity within sixty (60) days
after the amount becomes available with the Participant as
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
termination, if after such distribution any funds remain
after payment of all expenses, such funds shall be allocated
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.
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ARTICLE XI1
PROVISIONS WITH RESPECT TO THE TRUSTEE
by created only upon the terms and conditions of this Trust,
Section 12.01. The Trustee accepts the Trust here-
including the following terms and conditions:
(a) The named Trustee and its successors in trust
and the survivors of it shall be the Trustees of his 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.
(b) The Trustee shall be liable only for the safe-
guarding and administration of the Trust estate in accord-
or supplements thereto, and no other or further duties or
ance with the provisions of this Trust, and any amendments
responsibilities shall be implied.
(C)
any action upon any paper or document believed by the Trus-
The Trustee shall be fully protected in taking
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
ployer, and in making any payments under this Trust and
identity and/or mailing address to be furnished by the Em-
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 rOason of the refusal of any issuing
Insurance Company or companies to take any action requested
by the Trustee.,
pensation as may be agreed upon by the Trustee and the En-
(e) The Trustee shall serve and receive such com-
ployer. The Trustee shall be entitled to reimbursement by
the Employer for all proper expenses incurred by it in the
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performance of its duties as Trustee hereunder, including
the cost of any litigation hereunder.
(f) Whenever in the administration of this trust
matter be proved or established prior to taking, suffering,
the Trustee shall deem it necessary or desirable that a
or omitting any action hereunder, said matter may be deemed
to be conclusively proved and established by a certificate
Employer. Any such certification shall be a complete guar-
in writing if signed by a duly authorized official of the
antee to the Trustee in connection with any such action on
the faith thereof.
(g) All funds in the possession of the Trustee may
be deposited in the name of the Trustee in such bank or
banks as it shall elect. Any funds so deposited in any bank
shall be subject to withdrawal on the signature of any one
Trustee.
owner of the Insurance Contracts and/or policies held in the
(h) The Trustee shall be the complete and absolute
Trust estate and or each and every incident of ownership
thereof, including the power to sell or assign any such pol-
money upon such policy and to hypothecate the same to secure
icy; to receive all dividends on any such policy; to borrow
any such loan, to repay any loans, to surrender any such
may be payable to the Trustee by the terms of any policy
policies for cash; to receive all payments of any kind which
held in trust, to change the amount of any policy; and,
without limitation of the foregoing to exercise any and all
of the rights, options and privileges which belong to the
absolute owners of a policy, or which are granted by the
permitted by any Insurance Company.
terms of any policy, or by the terms of this Trust, or are
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
participation at reasonable times. Within sixty (60) days
the records of the Trustee insofar as they relate to his
following the close of each calendar year, or at such other
date as may be agreed upon between the Cmployer and the
Trustee, the Trustee shall file with the Emplover 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-
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ten objections, and neither the Employer nor any Participant
nor any other person shall have the right to demand or be
entitled to any further or different accounting by the Trus-
tee.
Section 12.05.
contained to the contrarv. neither the Emplover nor the
Notwithstanding anything herein
Trustee shall have any responsibility for the. form, genuine-
ness, validity, sufficiency, or effect of any Insurance Con-
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
fits of any such Insurance Contract as and when the same
Insurance Company to pay the proceeds and avails and bene-
shall become due and payable. or for any delay occasioned by
any restriction or provision contained in any such Insurance
Contract, or if for any reason whatsoever any Insurance Con-
tract or policy shall lapse or otherwise become uncollecti-
ble, provided, however, that nothing contained herein shall
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.
execute all necessary receiDts and releases to the issuing
Section 12.05. The Trustee is hereby authorized to
power to institute actions or suits to collect any sums that
Insurance Company or Companies concerned, and shall have
may appear to be due to the Trustee under any contracts;
maintain any litigation unless it has in its possession
provided, however, that the Trustee shall not be required to
funds sufficient for that purpose or has been indemnified to
its satisfaction for counsel fees, costs and other liabili-
ties to which it may, in its judgment, be subjected by such
action on its part.
Section 12.06. The Trustee shall not be required
to give any bond or other security for the faithful perform-
ance of its duties hereunder.
moved by the Employer by the delivery to such Trustee of a
Section 12.07. A Trustee or Trustees may be re-
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
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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,
upon accepting such appointment by an instrument in writing
delivered to the Employer, shall become vested with all the
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,
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ARTICLE XI11
PROVISIONS RELATING TO INSURANCE COMPANIES
0 Section 13.01. No Insurance Company which may is-
sue anv Insurance Contracts for the purposes of this Trust
shall be required to take or permit any action contrary to
the provisions of said Insurance Contracts, nor shall such
any purpose, nor shall it be responsible for the validity of
Insurance Company be deemed to be a party to this Trust for
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
this Trust.
that any action of the Trustee is authorized by the terms of
Section 13.03. Any such issuing Insurance Company
with any change made in any policy upon the signature of any
shall be fully discharged from all liability in connection
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. .my issuing Insurance Company
shall be discharged from all liability for any amount paid
to the Trustee, and no such issuing Insurance Company shall
of any monies so paid by it.
be obliged to see to the distribution or further application
0 Section 13.0L. Any and all certificates or other
documents requirinq the signature of the Trustee may be - 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
this Trust, and any such Insurance Company shall be fully
protected in taking or permitting any action on the faith
hereof and shall incur no liability or responsibility for so
doing.
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MISCELLANEOUS PROVISIONS
ARTICLE XIV
the Trustee under any of the provisions of this Trust on be-
Section 14.01. If any money shall be payable by
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
provided for in this Trust. Nothing herein contained shall
he construed or interpreted as giving any Employee the right
to be retained in the sevice of the Employer or shall affect
or impair the right of the Employer to control its employ-
ment and terminate the service of any Employee at any time.
Section 14.03. This Trust shall terminate when,
but not until, in accordance with the provisions hereof,
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 14.0L. The Trust shall be binding upon and
inure to the benefit of the Employer and its successors, the
Trustee and its successors in office, and the Participants
instrument.
in accordance with and subject to the limitations of this
Section 14.05. The Trustee shall not be responsi-
ble for the solvency of any Insurance Company from which an
Trust.
Insurance Contract shall have been purchased under this
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 he sufficiently evidenced
by any one thereof.
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.,
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:
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