HomeMy Public PortalAboutr 09:232
~e501utioH of tqe ~orougq of aIarteret, ~ ~ JJ ~
No,OO"'232 Date of Adoption N:rvarl:::er 23, 2fI.Jj
Resolution for Emplo)'ces Adopting Axa Equitllble's
Specimen 457 Plan Document
'''HEREAS, the Borough of Carteret has considered the establishment of
an atlditional457 (b) Deferred Compensation Plan to be made available to all
eligible municipal cmployccsjand
\VI-IEREAS, in order to attract lmd retain qualified employees there exists
a need to adopt and implement a DEFERRED COl\'IPENSA TION ]lLAN for the
employees oCThe Borough of Cartcl'et(herciuafter referred to as Employer),
which will provide employees the opportunity to enhance their financial security
at retirement through savings of compensation on 11 deferred basis J1S provided
b}' section 457 of the Internal Reyenue Code of 1986, as amended ("CodeIJ);and
\VHEREAS, there is no direct financial cost to the Employer to adopt and
implement both a Deferred Compensation Plan and Service Agreementj
WHEREAS, the Employer made written requests for pl.oposals from two
or more appro\.ed contractors,including AXA Equitable Life Insurance Company
(hereinafter referred to ad "AXA Equitable and The Hartfol'd for administration
of the investments of funds under a Deferred Compensation Plan
including providing Protot)'pical and Service Agreements that meet the
Requirements of the MunicipallCounly and Aulhorit)' Deferred Compensation
Programs Rule N.J.A.C. 5:37
\VHEREAS, A..XA Equitable submitted a proposal for review and
consideration:and
\VHEREASI it was determined that AXA Equitable has the abiJit}, to: (1)
maintain complete records of accounts; (2) manage llccounts with absolute
fidelit}'j (3) provide advice concerning various catergorics ofiuvcstmcntsj an (4)
provide continuing consultlltion to participllntSj
NOW THEREFORE BE IT RESOLVED by THE BOROUGH OF CARTERET
That effective the date of this resolution the DEFERRED COi\IPENSA TION PLAN
l)rovided by A.XA Equitable and llssigned the plan identifier: 66-PDEquitable-053107
by the New Jersey Division of Local Government Services, is hereby adopted and
signed by the Borough of Carteret.
BE IT FURTHER RESOVED THAT the Borough of Ca,.teret hereby
acknowledges that the said DEFERRED COMPENSATION PLAN is
substantially similar to one on which Private Letter Ruling has been
previously obtained from the federallntermll Revenue Service exccpt for
provisions added by reason oCThe Small Business Job Protection Act of 1996
(United States l)ublic Law No. 104-188), the Tax payer Relief Act of2001
(United States Public Law No, 105-34),and Economic Growth and Tax Relief
Reconciliation Act of2001 (United States Public Law No. 107-16), and all such
provisions are stated in the phm in terms substantially similar to the text of those
provisions in the Code Section 457 including pertinent applicable Treasury
Regulations. The use of the ruling is for guidance only and aclmowledgcs that
for Internal Revenue Service purposes; tbe Ruling of another employer is not be
considered precedent.
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NO. 09-232
PAGE 2
BE IT FURTHER RESOL VED THAT the Borough Administrator
is authorized to execute the Service Agreement (hem-jug the identifier: 66-
SAEquitablcw053107 assigned by the New Jersey Division of Local Government)
with AXA Equitable for the provisions of administrative and investment scn'ices.
There has been no collusion, 01' evidence or appearance of collusion, between
an)' local official and a representative ofAXA Equitable in tbe selection of A..U
C(luitablc as contractor for the administrator of the SCl"yice Agreement pursuant
to N.J.A.C. Section 5:37-57
BE IT FURTHER RESOL VED THAT the Chief Financial Officer is hereby
designated as Local Plan AdministratOl' for the administration of the DEFERRED
COiHPENSATION PLAN. It is implicitly understood that, other than the incidental
expenses of collection and disbursing the employee's deferrals and other minor
administrative matters, there is to be no cost to the Borough of Carteret.
BE IT FURTHER RESOLVED TlL\ T no employce shall he pcrmitted to
enroll in the Plan nntil such time as said employee signs a statement authorizing
said deduction.
BE IT FURTHER RESOL YED THAT a certified copy of this resolution and
all neeeSSal"y required documents shull be submitted to the Director of the
division of Local Government Service with in the Stute Department of
Community Affairs for approval.
kbpte::l this 23rd day of N-:Jvs-rter, 2fJJj
an:l certifiEd as a true ccw of the
origirlli on N-:Jvs-rter 24, 2fJJj.
KimJLEEN M. BAR.\lEY, we
MJIliciraJ, Clerk
RECORD OF COUNCIL VOTE
COUNCIUIAN I YES NO NV A,B. COUNCILMAN YES NO NV A,B.
m;n~~ X KRLM X
Cl1CN X N\PLES v
DIAZ X STIJ\RZ Ix
--~.
X -lndicateVolC AB -Absent NY -Not Voting XOR + Indil:alCs Vote to Q\'crrule Vetn
Adopled at a meeting of the t<.Iunicipal Council fi;;t~~~A.
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