ORD NO 09-2010 CITY OF VAN BUREN, ARKANSAS
ORDINANCE NO. q -2010
BE IT ENACTED BY THE CITY COUNCIL, FOR THE CITY OF VAN BUREN,
ARKANSAS, AN ORDINANCE TO BE ENTITLED:
AN ORDINANCE SUPPORTING THE ADOPTION OF THE
ARKANSAS DIAMOND DEFERRED COMPENSATION
PLAN FOR THE CITY OF VAN BUREN.
WHEREAS, the City of Van Buren, Arkansas (hereinafter referred to as the "City has
determined that in order to attract and retain qualified employees, it is necessary
to provide a deferred compensation plan in accordance with the provisions of
Arkansas Code Annotated §21 -5 -501, et. Seq., and in accordance with Section
457 of the Internal Revenue Code of 1986, as amended;
WHEREAS, the City wishes to participate in the Arkansas Diamond Deferred Compensation
Plan "Plan which is a deferred compensation plan established for the benefit of
employees and independent contractors of the State of Arkansas, any agency or
instrumentality of the State or a political subdivision of the State, in accordance
with the provisions of Arkansas Code Annotated §21 -5 -501, et. Seq., and in
accordance with Section 457 of the Internal Revenue Code of 1986, as amended;
WHEREAS, the City has determined that by participating in the Plan it will reduce overall
administrative costs of operating a deferred compensation plan, and afford
attractive investment options to its employees;
WHEREAS, in order to become a Participating Employer in the Plan the City must execute an
Adoption Agreement to the Plan; and
WHEREAS, the City Council is authorized by law to adopt this ordinance approving the
Adoption Agreement;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF VAN BUREN, ARKANSAS;
SECTION 1. The City adopts the Plan.
SECTION 2. The City acknowledges that the Plan Administrator for the Plan is the Executive
Director, Employee Benefits Division, Department of Finance and Administration
of the State of Arkansas.
SECTION 3. The Mayor is authorized to sign the Adoption Agreement to the Plan and by so
signing, be bound by the terms of the Plan as stated in the Adoption Agreement
and other Plan documents. The City reserves the right to amend its elections under
the Adoption Agreement, so long as the amendment is not inconsistent with the
Plan or the Internal Revenue Code or other applicable law and is approved by the
Plan Administrator.
SECTION 4. The City agrees that it shall abide by the terms of the Plan, including amendments
to the Plan made by the Plan Administrator, all investment, administrative, and
other service agreements of the Plan, and all applicable provisions of the Internal
Revenue Code and other applicable law.
SECTION 5. The City accepts the administrative services to be provided by any service
provider selected by the Plan Administrator. The City acknowledges that fees will
be imposed with respect to the services provided and that such fees may be
deducted from the Participants' Plan Accounts.
SECTION 6. The City may terminate its participation in the Plan, including but not limited to,
its contribution requirement, by way of;
(1) An ordinance of the City terminating its participation in the Plan.
(ii) The ordinance must specify when the participation will end.
The Plan Administrator shall determine whether the ordinance complies with the
terns of the Plan, and all applicable federal and state laws. The Plan
Administrator shall also determine as appropriate effective date, and shall provide
appropriate forms to terminate ongoing participation. However, distributions
under the Plan of existing accounts to Participants will be made in accordance
with the Plan.
SECTION 7. The City acknowledges that all assets held in connection with the Plan, including
all contributions to the Plan, all property and rights acquired or purchased by such
amounts and all income attributable to such amounts, property or rights shall be
held in trust for the exclusive benefits of participants and their Beneficiaries under
the Plan. No part of the assets and income of the Plan shall be used for, or
diverted to, purposes other than for the exclusive benefit of Participants and their
Beneficiaries and for defraying, reasonable expenses of the Plan. All contributions
to the Plan shall be transferred to the Plan Custodian to be held, managed,
invested and distributed as part of the Plan's Custodial Account in accordance
with the provisions of the Plan. The City must transfer all contributions to the
Plan Custodian. All benefits under the Plan shall be distributed solely from the
Plan's Custodial Account pursuant to the Plan.
SECTION 8. It is the intent of the City any contributions made by the City on behalf of the
employees after adoption of the Plan will be made to the Plan.
SECTION 9. All ordinances or parts of ordinances in conflict with this ordinance are hereby
repealed.
SECTION 10. If any part of this Ordinance is declared invalid or unconstitutional for any reason,
such declaration shall not be held to invalidate or impair the validity, force or
effect of any other part of this Ordinance.
IN TESTIMONY WHEREOF, the City of Van Buren, Arkansas, by its City Council, did
pass, approve, and adopt, by a vote of 5 for and Q against, the foregoing Ordinance at
its meeting held on the 19th day of April 2010.
0 I
Robert D
ATTESTED:
Yclat-PA-41L Barbie Curtis, City Clerk /Treasurer