(a) Definitions. For purposes of this section the following words shall have the meanings herein stated:
Deferred Compensation shall mean the amount of compensation reduced and deferred pursuant to a deferred compensation agreement.
Deferred Compensation Account shall mean the account established for each employee who has entered into a deferred compensation agreement and into which the compensation he has deferred shall be credited.
Deferred Compensation Plan shall mean any defined contribution retirement plan established pursuant to section 457(b) or 401(a) of the Internal Revenue Code, or any other allowable plan the City deems appropriate for the purpose of helping employees prepare financially for their retirement.
Employee shall mean any person actively employed by the City of Carmel.
Employer shall mean the City of Carmel.
(b) Elective deferred compensation plan authorized. The employer is hereby authorized to establish and administer one deferred compensation plan for eligible employees as provided in this section or pursuant to I.C., 5-10-1.1-7. Such deferred compensation plan may be amended from time to time. Any amendment to an existing plan or the adoption of a new plan shall not invalidate any employee's previous deferral of compensation and/or any income or loss attributable to the amounts deferred.
(c) Employee eligibility. Any full-time or part- time employee, including elected or appointed officials, shall be eligible to participate in the deferred compensation plan, provided the employee has entered into a properly executed deferred compensation agreement.
(d) Terms of agreement. A deferred compensation agreement shall be executed by each participating employee and by the employer or any party authorized to execute such agreements on behalf of the employer, and shall contain the following provisions:
(1) The eligible employee shall agree in writing that the salary of such employee shall be reduced by no less than $20 per month and the same amount shall be credited to the employee's deferred compensation account. The employee may begin, end or revise his deferral amount within the limitations established by the City.
(2) All deferrals shall be invested in accordance with the written instructions of the employee, who may select among the options offered by the deferred compensation plan. If the employee fails to designate his investment preferences, the money will be invested as outlined in the default provision of the plan.
(3) The employee shall agree that the assets of any 457(b) account are the absolute property of the employer, and the employee shall have no rights to that account except as set forth in the deferred compensation plan.
(4) Monies deposited into a deferred compensation account cannot be withdrawn until the participant leaves the City's employment, unless the employee qualifies for an unforeseeable emergency withdrawal, as defined by the Internal Revenue Code.
(e) Non-elective deferred compensation plan. The City shall make a non-elective contribution to the deferred compensation plan on behalf of each sworn officer of the Carmel Police Department in an amount equal to what would have been paid into the Social Security system if the Carmel Police Department participated in that system. Such non-elective contributions shall be referred to as the "Police Retirement Benefit Program." Non-elective contributions to the Police Retirement Benefit Program shall be held separately from elective contributions but shall be administered under the same guidelines as the elective plan.
(f) Administration. The deferred compensation plan shall be administered as provided for in the deferred compensation plan document and any amendments thereto. The employer may enter into an agreement with one or more third parties to provide consulting, administrative and/or financial planning services in relation to the deferred compensation plan.
(g) Matching contributions. The City shall match certain elective contributions of full-time and part-time employees to the deferred compensation plan to the extent such contributions are allowed by law. Contributions made to the non-elective Police Retirement Benefit Program are not eligible for matching.
(1) The City shall match employee contributions to deferred compensation accounts (excluding catch-up contributions) at the levels stated below. The City’s matching contribution will not exceed 50% of the employee contribution or 50% of the maximum allowed by federal tax law, whichever is lower, regardless of the employee's length of service or the amount of his deferral.
a) No match in the first calendar year of employment with the City;
b) Ten percent match after one full calendar year of employment with the City;
c) Twenty percent match after two full calendar years of employment with the City;
d) Thirty percent match after three full calendar years of employment with the City;
e) Forty percent match after four full calendar years of employment with the City;
f) Fifty percent match after five full calendar years of employment with the City.
(2) The City reserves the right, in its sole discretion and with prior approval of the Common Council, to change the level of or cease providing matching contributions at any time. If the level of matching contributions is changed, the City will promptly notify its employees in writing of such change.
(3) All matching contributions made by the City are 100% vested at the time of the contribution. However, an employee may not withdraw any monies, for any reason, from a matching account until his employment with the City is terminated.
(4) An employee will be eligible for each stated level of matching on the first payroll date following his employment anniversary date on which the required years of service are attained, regardless of length of time the employee has participated in the deferred compensation plan.
(5) Should an employee have an interruption of employment of 100 or fewer calendar days, the employee shall be entitled to full credit for service prior to the interruption. After an interruption of more than 100 calendar days, a returning employee shall be treated as a new employee for purposes of the deferred compensation matching program and shall not receive credit for prior service.
(h) Neither the existence of a deferred compensation agreement nor any of its provisions shall be construed to confer upon the employee any right to continue his employment for any specific period or at any particular rate of compensation.
(`91 Code, § 2-56) (Ord. D-873, 1-4-93; Ord. D-1435-99, 10-4-99; Ord. D-1525-01, § I, 10-15-01; Ord. D-1593-02, 9-16-02; Ord. D- 1789-05, 1-23-06; Ord. D-1838-06, As Amended, 12-18-06; Ord. D-1900- 08, 8-4-08; Ord. D-2067-11, 11-7- 11; Ord. D-2095-12, As Amended, 10-18-12; Ord. D-2266-16, 1-4-16; Ord. D-2490-19, 10-21-19)