[Adopted 3-27-2018]
Pursuant to the authority granted to said Common Council of
the City of Norwalk, Connecticut in § 189 of the Norwalk
City Charter and § 7-450 of the Connecticut General Statutes,
there shall be created and established for such City the 401(a) Money
Purchase Plan [401(a) Plan] in order to provide retirement benefits
to certain employees of the City and Board of Education in accordance
with the requirements of § 401(a) of the Internal Revenue
Code of 1986, as amended.
The Norwalk City Employees' Pension Board shall be designated
as the fiduciary of the 401(a) Plan, and shall have all of the powers
and responsibilities of the fiduciary of the 401(a) Plan as provided
by Connecticut Uniform Prudent Investor Act, Conn. Gen. Stats. §§ 45a-541
through 45a-5411, as amended. The members of this Defined Contribution
Board shall receive no compensation for their service.
A.
Separate accounting. The Defined Contribution Board shall establish
and maintain an account in the name of each participant to which the
Defined Contribution Board shall credit all defined contribution amounts
allocated to each such participant as set forth herein.
B.
Allocation of contributions. The City shall provide the Defined Contribution
Board with all information required by it to make a proper allocation
of the City's defined contribution plan contribution for each
plan year. Within a reasonable period of time after the date of receipt
by the Defined Contribution Board of such information, the Defined
Contribution Board shall allocate any City 401(a) plan contributions
proportionately among the participants of the 401(a) Plan as provided
herein.
C.
The Defined Contribution Board shall have the authority to delegate
these custodial responsibilities to other parties, including, but
not limited to, institutional trustees, investment advisors, investment
managers and third-party administrators (qualified financial institutions).
A.
Participant accounts. The Defined Contribution Board shall create
and maintain adequate records to disclose the interest of each participant,
former participant, and beneficiary in such participant's separate
401(a) Plan account. Such records shall be in the form of individual
accounts to which shall be credited the participant's employee
401(a) Plan contributions, the City 401(a) Plan contributions allocable
to the participant as provided herein, and the aggregate of all earnings
and losses on such account.
B.
Participant directed investments. Each participant may designate,
in accordance with the procedures established from time to time by
the Defined Contribution Board, the manner in which the amounts allocated
to each of his or her accounts shall be invested from among the investment
funds made available from time to time by the Defined Contribution
Board. That portion of the interest of any participant so directing
will thereupon be considered a participant's directed account.
If a participant fails to make a designation, then his or her account
shall be invested in the investment fund or funds designated by the
Defined Contribution Board from time to time in a uniform manner.
A participant may change his or her investment designation for future
contributions to be allocated to his or her account. Any such change
shall be made in accordance with procedures established by the Defined
Contribution Board, and the frequency of such change may be limited
by such procedures. A participant may elect to convert his or her
investment designation with respect to the amounts already allocated
to his or her account. Any such conversion shall be made in accordance
with the procedures established by the Defined Contribution Board,
and the frequency of such conversions may be limited by such procedures.
C.
All participant directed accounts shall be charged or credited with
net earnings, gains, losses and expenses as well as any appreciation
or depreciation in the market value using publicly listed fair market
values in accordance with procedures established from time to time
by the Defined Contribution Board. The Defined Contribution Board
shall ensure proper administration of the 401(a) Plan.
D.
The Defined Contribution Board shall have the authority to delegate
these custodial responsibilities to qualified financial institutions.
All employees shall be 100% vested in the City's accounts
after five continuous years of service with the City. The employee
is vested in his or her own contributions and any accrued interest
thereon immediately. The vesting schedule is only for the purposes
of ownership in the City's contributions and the accrued interest
thereon. This term is subject to modification through collective bargaining
between the City and unions.
The City currently contributes to each employee's account
an amount of 5.0% of the employee's base pay. The employee currently
contributes an amount of 5.0% of his or her base pay. This term is
subject to modification through collective bargaining between the
City and unions.
A.
The Defined Contribution Board shall be responsible for establishing,
monitoring, evaluating, overseeing, revising and administering the
401(a) Plan in accordance with the provisions of the Connecticut Uniform
Prudent Investor Act, Connecticut General Statutes §§ 45a-541
through 45a-5411, as amended. The agreement may be modified or amended,
as appropriate, in accordance with applicable law, upon the recommendation
of the Defined Contribution Board and approval of the majority of
the entire Common Council.
B.
The Defined Contribution Board shall perform the duties set forth
in the following documents [401(a) Documents]:
No member of the Defined Contribution Board, nor any other person
involved in the administration of the 401(a) Plan, shall be liable
to any person on account of any act or omission in good faith in performing
their respective duties under the terms of the 401(a) Plan. To the
extent permitted by law, except in matters involving a violation of
his or her fiduciary duties, criminal liability and intentional or
willful misconduct, the City shall indemnify and hold harmless members
of the Defined Contribution Board from any and all liability and expenses,
including counsel fees, reasonably incurred in any action, suit, or
proceeding to which he/she is or may be a party by reason of being
or having been a member of the Defined Contribution Board. If the
City purchases insurance to cover claims of a nature described above,
then there shall be no right of indemnification except to the extent
of any deductible amount under the insurance coverage or to the extent
of the amount the claims exceed the insured amount.
If any Board member has a direct or indirect business relationship
with a vendor or service provider, he or she must disclose it to the
Board. Such a business relationship can include an ownership interest,
self-employment with the vendor or service provider or employment
by a Board member's immediate family. That Board member shall
recuse himself from the decisions of the Board to use that vendor
or service provider and it will be noted in the minutes of the meeting.
No Board member shall unduly profit from his or her association with
any vendor or service. At the beginning of each calendar year, any
Board member must disclose any such interest in writing to the Chairperson
of the Board.
