TC Res. No. 1988-040 0
RESOLUTION NO. 88-4
SERIES OF 1988
A RESOLUTION OF THE TOWN OF AVON, COLORADO, AMENDING
PENSION AND DEFERRED COMPENSATION ARRANGEMENTS WITH
ICMA AND ADOPTING PENSION AND DEFERRED COMPENSATION
PLANS FOR THE GENERAL EMPLOYEES OF THE TOWN OF AVON
WHEREAS, the Town of Avon ("employer") and its general
employees desire to restate its pension and deferred compensation
documents in order to terminate prior pension and deferred
compensation administration arrangements which the Town has had with
ICMA; and
WHEREAS, the Town of Avon desires to adopt its own trust
documents for the general employees, as presented to the Town
Council on January 1 , 1988, in order to allow for increased
flexibility in the selection of an administrator and of investments.
NOW, THEREFORE, BE IT RESOLVED by the Town Council of
the Town of Avon, Colorado, to wit:
1. The Town of Avon hereby restates its current plan
with ICMA, terminating the pension and deferred compensation and
investment arrangements for its general employees with ICMA, such
termination to be effective on January 1, 1988.
2. The Town of Avon hereby adopts new Pension Trust
Documents, as presented January 1 , 1988, for its general
employees, to be effective commencina on such date.
3. The Town of Avon adopts the following provision in
its general employees Money Purchase Pension Plan:
1. Adoption of a trust with the committee
comprised of the Assistant Town Manager,
Finance officer, and threel.elected members
of the general employees.
i 0
4. The Town of Avon appoints Pension Management
Associates, Inc. to furnish a restated plan document based on
Colorado State Statutes applicable and in accordance with present
plan provision as well as new provisions adopted by this resolution.
ADOPTED this 26th day of January, 1988.
TOWN COUNCIL
TOWN OF AVON, COLORADO
Ilan R. Nottingh , Mayor
-2-
9
MEMO
TO: William D. James, Town Manager
FROM: Steve Midkiff, Finance Officer
RE: General Employee Pension and Deferred Compensation Plan Change
DATE: January 22, 1988
The purpose of the attached Resolution is to allow the general employees to
change the administration and investment opportunities within the current
Pension and Deferred Compensation plans.
ICMA is currently the administrator and consultant for investments in both
the Money Purchase and Deferred Compensation plans. The Money Purchase Plan,
which ICMA currently offers, allows for only one type of investment. While
some employees are content with this investment strategy, others have expressed
the preference of having a variety of investment opportunities. Various
employees have also expressed a dissatisfaction with the service they are
currently receiving from ICMA regarding assistance in r2viewing statements and
explaining different types of investments in the Deferred Compensation plan.
As a result of the above mentioned problems, the general employees decided to
explore other alternatives for better service and variety of investment oppor-
tunities. On December 22, 1987, a general employee meeting was held, at which
concerns and alternatives were discussed. A decision (by majority vote) was
made to withdraw from ICMA and consider Nexus Financial for the administrator
of the retirement plans.
The attached Resolution, X688-4, Series of 1988, will allow the general employees
to continue with a Money Purchase and Deferred Compensation plan, and consider
Nexus Financial for the administrator of the above mentioned plans.
ACTION:
Council approval of Resolution No. 88-4, Series of 1988.