The Auditor, or his Deputy, is hereby authorized to enter into an agreement with City employees, City officer or independent contractors who may qualify for this plan, whereby the participant may designate a portion of his future earnings to be deducted by the City and placed in an accumulation fund calculated to provide tax sheltered annuity benefits to the participant upon his retirement. Such agreement shall include, but not be limited to, specifications that:
(a) No City funds are to be contributed to the plan;
(b) The City may amend the provisions of this plan at any time, provided, however, that no amendment shall affect the rights of participants or their beneficiaries to the receipt of payment of benefits, to the extent of any compensation deferred at the time of the amendment as adjusted for investment experience hereunder prior to and subsequent to the amendment;
(c) The City shall not be responsible for any loss due to the investment or failure of investment of funds and assets in the plan, nor shall the City be required to replace any loss whatsoever which may result from such investments, or failure to make investments;
(d) All funds and assets, together with interest, accumulations and increments thereon, in the Employees' Salary Reduction-Sheltered Annuity Account, shall remain an asset of the City and be subject to the City's ownership until such time as the funds or assets of such Account are distributed to the participants in accordance with the provisions of the agreement;
(e) The City may elect to purchase a variable annuity contract or other asset in connection with the liabilities assumed by it hereunder;
(f) The obligation of the City to the participant for the payment of distributions and increments thereon referred to in agreement are deemed a contractual obligation only, and the participant shall have no preferred or special interest, by way of trust, escrow, annuity or otherwise, in and to the specific assets or funds held in such Employees' Salary Reduction-Sheltered Annuity Account.
(Ord. 60-1973. Passed 6-12-73.)