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HomeMy WebLinkAboutRESO 5755.. • OR~GINAL RESOLUTION NO. 5755 RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING RESOLUTION NO. 5083 RELATING TO CITY'S DEFERRED COMPENSATION The Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. Resolution No. 5083 is hereby amended by amending Section 5 of the City of Palo Alto, Cdlifornia, Deferred Compen- sation Plan, adopted by Resolution No. 5083, to read as follows: "SECTION 5. DEFERRED COMPENSATION: 5.1 During each employment period in which the em- ployee is a participant in the plan, the em- ployer shall defer payment of such part of his compensation as is specified by the ~mployee in the Participation Agreement which he has executed and filed with the employer; provided that, ex- cept as provided in Section 5.2, the maximtnn that each participant may defer under this Plan for any taxable year shall aot exceed the lesser of: 5. 1 (.a) 5. l(b) $7,500, or 33 1/3 percent of the participant's includable compensation. 5.2 Notwithstanding the provisons of Section 5.1, for one or more of the participant's last three taxable years ending before he attains normal retirement age under the Plan, the maximum amount of income which may be def erred in any taxable year by an employee shall be the lesser of: 5. 2(a) 5. 2 {_b) $15,000, or the sum of: (i} the Plan ceiling established for purposes of Section 5.1 for the taxable year (dete't"Dllned without regard to the section), plus (ii} so much of the Plan ceiling estab- lished for purposes of Section 5.1 for taxable years before the taxable year as has not theretofore been used under Section 5.1 or this Section. 5.3 For purposes of this Section, all terms shall be defined consistent with those definitions contained in Section 457 of Title 26 of the United States Code; or successor legislation." • ... ... .. SECTION 2. The Council hereby states that it is the intent of the Counc'Tf that the City's deferred compensation plan be, and be administered, in compliance with the terms of the Revenue Act of 1978, or successor legislation governing such plans. In the ever.t of any conflict or inconsistency between the City's deferred com:pensati~a plan and such federal statutes, said federal statutes ah.all prevail, and the Plan shall be administered in full com- pliance with all requirements of said legislation. SECTION 3. The Council finds that the adoption of this resolution is not a pro~e~t as defined by the California Environ- mental Quality Act. INTRODUCED AND PASSED: Df:Cm1ber ~IJ, 1979 AYES: Brenner, Eyerly, Fletcher. Henderson, Levy, Ren1el, Witherspoon NOES: None ABSTENTIOHS : None ABSENT: Fazzi no, Sher APPROVED: ~·ffe~,. Ra)' or