HomeMy WebLinkAbout12. Approve an amended 401a Money Purchase Plan Adoption agreement with MissionSquare Retirement Page 1 of 18
Item 12.
CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
MEETING DATE: MAY 5, 2022
SUBJECT: APPROVE THE EXECUTION OF AN AMENDED 401A MONEY PURCHASE
PLAN ADOPTION AGREEMENT WITH MISSIONSQUARE RETIREMENT
SUBMITTED BY: INITIATING DEPARTMENT:
KEVIN MIZUNO, FINANCE MANAGER ADMINISTRATION-FINANCE
REVIEWED BY: TEJI O'MALLEY, HUMAN RESOURCES AND ORGANIZATIONAL
DEVELOPMENT MANAGER
PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION
Roger S. Bailey
General Manager
ISSUE
Amendments are being proposed to the 401 a Money Purchase Plan Adoption Agreement with Mission
Square (formerly I CMA-RC)to: 1) restate the plan pursuant to I RS regulations; 2) incorporate the
provisions of a recently Board-approved employee elective deferral for Unrepresented at-will employees;
and 3) allow for an additional elective but irrevocable deferral benefit to newly hired employees.
BACKGROUND
The following provides a synopsis of the changes proposed to the 401(a) Money Purchase Plan (401 a
Plan)Adoption Agreement. The new Adoption Agreement is provided in Attachment 1, and all changes
proposed to Appendix A of the 401 a Plan Adoption Agreement are shown in red in Attachment 2.
Plan Restatement and Refinement
Every six years Central San's 401 a Plan third party administrator(TPA), MissionSquare, is required (by the
I RS)to submit (via a "volume submission")their Plan and Trust as well as the Adoption Agreement to the
IRS for approval. MissionSquare then requires every plan sponsor with a 401 a Plan to restate the plan.
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As part of this process, the I RS noted that any anomalies or amendments/addendums might be
considered material enough to fall outside of the "volume submission" of the document, and accordingly
would warrant separate consideration and reconciliation with their Plan and Trust document. As Central
San's 401 a Plan Adoption Agreement includes such an addendum (i.e., AppendixA), the TPA's plan
adoption services team undertook a deeper look for potential issues. While having an addendum that lists
different contribution provisions is not considered a material change, the I RS noted that Central San uses
slightly different language in the Adoption Agreement than what is on the Appendix A. Specifically, Section
V of the 401 a Plan Adoption Agreement describes employees eligible to participate in the plan as "All
regularemployees (full and part-time)"whereas AppendixA lists the "General Manager, Local 1, MSCG
& Management". It is possible, though unlikely, that if the IRS were to audit the plan that they would not
consider Central San to be using the TPA's plan document and could therefore be considered to be out of
compliance. Accordingly, out of an abundance of caution, Mission Square recommends these differences
be reconciled. Staff is in agreement with the TPA and recommends adopting the revised Adoption
Agreement (Attachment 1)which now makes reference to AppendixA in section V and includes a new
section in Appendix A to more clearly list each employee group. In consultation with the TPA, this change
will not have any impact on how the Plan is administered for employee participation.
Employee Deferral for Unrepresented At-Will Employees
The 401 a Plan provisions were most recently updated on March 24, 2022 with the Board's approval of
Resolution 2022-020 specifying the salary and benefits of the Unrepresented At-Will Employees' group.
In addition to establishing new cost of living adjustment provisions for the term of the agreement and
creating a Health Reimbursement Account funded by mandatory employee contribution requirements, the
Resolution also established requirements for mandatory employee contributions to the 401 a Plan based
on three categories (income levels) of Unrepresented employees. The terms of this Resolution took
effect on April 18, 2022. Reflecting this latest change, Appendix A to the Adoption Agreement has been
updated to include the new mandatory employee contribution requirements for Unrepresented At-Will
employees as outlined in Resolution 2022-020.
Irrevocable One-time Deferral Election for Newly Hired Employees
As the 401 a Plan is being brought forth to the Board to consider an amendment for compliance purposes
as outlined previously, staff considers it timely to consider one additional revision to the 401 a Plan
Adoption Agreement that will create for a useful benefit option for newly hired employees. The I RS
presently allows for an employer to include (in the adoption agreement) an opportunity for employees to
make a one-time irrevocable election to contribute to the 401 a Plan. This election must remain in effect
(regardless of circumstance) until the employee severs employment with the agency. Furthermore, if the
employee returns within five years of employment the election must remain in effect. Based on guidance
from Central San's benefits counsel, this choice will be limited to the first day of employment, and the form
will specify this limitation. Human Resources intends to provide material related to this selection in
advance of the first day of work so that new employees are informed and can make a thoughtful and
suitable choice on their first workday.
There are a few rational for amending the Adoption Agreement to allow for this new benefit for newly hired
future employees. It is the general understanding that the original intent of establishing Central San's 401 a
Plan was to provide a social security replacement, and not necessarily to find other means for employees
to defer dollars for retirement, which is what the 457b Deferred Compensation Plan was intended to
accomplish. Furthermore, the establishment of the 401 a Plan predates the state legislature's rollout of the
Public Employee Pension Reform Act (PEPRA), which significantly reduced both employer costs and
employee benefits attributable to public pensions for employees hired on or after January 1, 2013, that do
not have reciprocity with another pension system. Given the significantly reduced pensions for future
newly hired PEPRA employees, those employees could benefit greatly from the opportunity to save more
for retirement and defer additional taxes at no additional cost to Central San. Unfortunately, this particular
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elective provision is not legally an option for any current employee of Central San pursuant to I RS
regulations. I n accordance with the provisions described, it is proposed that the 401 a Plan Adoption
Agreement also be amended in Section VI.B., allowing for"mandatory opt-in contributions" ranging from
1% -20% (the legal maximum).
This change was discussed by the Deferred Compensation Advisory Committee at their regular quarterly
meeting on February 2, 2022. Following a presentation of this matter by the Plan Administrator and TPA
and a discussion thereafter, the Advisory Committee voted unanimously in favor of this modification and
submission to the Board for approval. This proposed change to the 401 a Plan is scheduled to be brought
to the Board for adoption on May 5, 2022. If approved, the deduction option would be available for all
eligible employees hired on or after May 5, 2022, immediately following Board approval.
ALTERNATIVES/CONSIDERATIONS
The Board may elect not to amend the 401 a Plan Adoption Agreement to allow for newly hired employees
to voluntarily, but irrevocably, defer income for retirement. This is not recommended, as the new provision
would improve optional benefits for future employees at no additional cost to Central San. Furthermore,
not amending the plan to reconcile the terminology difference between Article V of the Adoption
Agreement and Appendix A may result in compliance issues in the future.
The Board may also elect to allow for an extended election window of up to 60 days for newly hired
employees (hired after May 5, 2022)to make a one-time irrevocable election to defer income to the 401 a
Plan. While the TPA does allow for this provision and provides it for other public agencies, this is not the
recommendation of staff in consultation with labor counsel to avoid potential I RS audit findings.
Lastly, there is also a provision in the I RS code of regulations allowing for employers to designate
mandatory 401 a Plan employee contributions for newly hired or existing employees. Central San would
designate an eligible group (or all employees)that would be required to contribute the same amount that is
determined and noted in the adoption agreement. This alternative is not recommended by staff as it is not
expected to be a popular provision with employees as the existing pension formulas already have
mandatory employee contributions requirements.
FINANCIAL IMPACTS
Adoption of the proposed amendments to the 401 a Plan Adoption Agreement is not expected to have any
direct financial impact on Central San. Some staff time will be necessary to modify existing processes to
allow newly hired employees to make a one-time irrevocable election to defer income into the 401 a Plan.
This additional staff time would is not expected to result in any additional incremental, unbudgeted cost to
Central San. It is reasonably possible that Central San's Enterprise Resource Planning consultant,
Emtec, will need to be engaged to help develop and test minor new system requirements for this
modification. This additional consultant cost, if even needed, is not expected to be significant.
COMMITTEE RECOMMENDATION
This matter was not discussed by a Board Committee. Pursuant to the advice of Labor Counsel, this item
is being brought directly to the Board for approval to expedite amendments to the 401 a Adoption
Agreement with MissionSquare to reflect provisions already approved by the Board on March 24, 2022.
For efficiency purposes, staff is also including two other changes in this action item as those items do not
have any direct financial impacts to neither Central San nor its current workforce. The restatement only
includes one minor revision to ensure the Adoption Agreement's consistency with Appendix A, and the
new provision allowing for an optional one-time irrevocable deferral election only impacts future
employees. The one-time irrevocable election option is not available to current employees of Central San
pursuant to I RS regulations, which states said one-time irrevocable election must (A) be allowable in the
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Plan document and (B) be made when the employee becomes eligible for plan participation, generally the
date of employment.
RECOMMENDED BOARD ACTION
Staff recommends Board adoption and execution of the attached 401 a Plan Adoption Agreement, which
includes the following proposed changes:
1. Revises terminology used in Section V to describe eligible participants to be consistent with the
existing and unmodified Appendix A.
2. Revisions to Section V1.1.B establishing mandatory participant contributions for"unrepresented at-
will" employees consistent with the previously adopted Resolution No. 2022-020.
3. Revisions to Section V1.1.B - C. allowing for"mandatory opt-in contributions" ranging from 1% - 20%
(the legal maximum)for newly hired employees on their date of hire with no extended election
window.
Strategic Plan re-In
GOAL THREE: Fiscal Responsibility
Strategy 2—Ensure integrity and transparency in financial management
GOAL FOUR: Workforce Development
Strategy 2—Foster relationships across all levels of Central San
ATTACHMENTS:
1. 401 a Plan Adoption Agreement (Amended)
2. 401 a Plan Adoption Agreement-Appendix A (changes in red)
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Attachment 1
ICMA Retirement Corporation
doing business as
MissionSquare Retirement
Governmental
Loney Purchase Plan
Adoption Agreement
Missit.u-,enSquare
RETIREMENT
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MissionSquare Retirement
Governmental Money Purchase Plan Adoption Agreement
Plan Number 10-9623
The Employer hereby establishes a Money Purchase Plan to be known as:
Central Contra Costa Sanitary District 401(a) Plan
(the"Plan")in the form of the MissionSquare Retirement Governmental Money Purchase Plan.
New Plan or Amendment and Restatement(Check One):
® Amendment and Restatement
This Plan is an amendment and restatement of an existing defined contribution money purchase plan.
Please specify the name of the defined contribution money purchase plan which this Plan hereby
amends and restates:
Central Contra Costa San! Dist
Effective Date of Restatement.The effective date of the Plan shall be:
February 1. 2022
(Note:The effective date can be no earlier than the first day of the Plan Year in which this restatement is adopted.
If no date is provided, by default, the effective date will be the first day of the Plan Year in which the restatement is
adopted.)
❑ New Plan
Effective Date of New Plan.The effective date of the Plan shall be the first day of the Plan Year during
which the Employer adopts the Plan, unless an alternate effective date is hereby specified:
(Note:An alternate effective date can be no earlier than the first day of the Plan Year in which the Plan is adopted.)
I. EMPLOYER:Central Contra Costa Sanitary District
(The Employer must be a governmental entity under Internal Revenue Code§414(d))
11. SPECIAL EFFECTIVE DATES
Please note here any elections in the Adoption Agreement with an effective date that is different from
that noted above.
Required Mandatoa Contributions in Section V1.1.13 are effective 6pril 18,2022-See Appendix A.
Employee Opt-In Mandatory Contributions in Section V1.1.13 are effective on Restatement adoption date.
(Note:provision and effective date.)
III. PLAN YEAR
The Plan Year will be:
V January 1 - December 31 (Default)
❑ The 12-month period ending:
Month Day
MissionSquare Retirement Governmental Money Purchase Plan Adoption Agreement 2
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IV. Normal Retirement Age shall be age 50 (not less than 55 nor in excess of 65).
Important Note to Employers: Normal Retirement Age is significant for determining the earliest date at
which the Plan may allow for in-service distributions. Normal Retirement Age also defines the latest date
at which a Participant must have a fully vested right to his/her Account.There are IRS rules that limit the
age that may be specified as the Plan's Normal Retirement Age.The Normal Retirement Age cannot be
earlier than what is reasonably representative of the typical retirement age for the industry in which the
covered workforce is employed.
In 2016, the Internal Revenue Service proposed regulations that would provide rules for determining
whether a governmental pension plan's normal retirement age satisfies the Internal Revenue Code's
qualification requirements.A normal retirement age that is age 62 or later is deemed to be not earlier
than the earliest age that is reasonably representative of the typical retirement age for the industry in
which the covered workforce is employed.Whether an age below 62 satisfies this requirement depends
on the facts and circumstances, but an Employer's good faith, reasonable determination will generally
be given deference.A special rule, however, says that a normal retirement age that is age 50 or later is
deemed to be not earlier than the earliest age that is reasonably representative of the typical retirement
age for the industry in which the covered workforce is employed if the participants to which this normal
retirement age applies are qualified public safety employees(within the meaning of section 72(t)(1 0)(13)).
These regulations are proposed to be effective for employees hired during plan years beginning on or
after the later of: (1) January 1, 2017; or (2) the close of the first regular legislative session of the
legislative body with the authority to amend the plan that begins on or after the date that is 3 months
after the final regulations are published in the Federal Register. In the meantime, however,
governmental plan sponsors may rely on these proposed regulations.
In lieu of age-based Normal Retirement Age, the Plan shall use the following age and
service-based Normal Retirement Age
Important Note to Employers:Before using a Normal Retirement Age based on age and service, a plan
sponsor should review the proposed regulations(81 Fed. Reg.4599(Jan.27,2016))and consult counsel.
V. COVERED EMPLOYMENT CLASSIFICATIONS
1. The following group or groups of Employees are eligible to participate in the plan:
❑ All Employees
❑ All Full Time Employees
❑ Salaried Employees
❑ Non-union Employees
❑ Management Employees
❑ Public Safety Employees
❑ General Employees
® Other Employees(Specify the groups)of eligible Employees below. Do notspecify Employees
by name. Specific positions are acceptable.),See groups listed in Appendix A
The group specified must correspond to a group of the same designation that is defined in the
statutes, ordinances, rules, regulations, personnel manuals, or other material in effect in the
state or locality of the Employer.The eligibility requirements cannot be such that an Employee
becomes eligible only in the Plan Year in which the Employee terminates employment.
Note: As stated in Sections 4.08 and 4.09, the Plan may, however, provide that Final Pay
Contributions or Accrued Leave Contributions are the only contributions made under the Plan.
MissionSquare Retirement Governmental Money Purchase Plan Adoption Agreement 3
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2. Period of Service required for participation
® N/A — The Employer hereby waives the requirement of a Period of Service for participation.
Employees are eligible to participate upon employment. ("N/A"is the default provision under
the Plan if no selection is made.)
❑ Yes.The required Period of Service shall be months(not to exceed 12 months.)
The Period of Service selected by the Employer shall apply to all Employees within the Covered
Employment Classification.
3. Minimum Age (Select One) - A minimum age requirement is hereby specified for eligibility to
participate.
❑ Yes.Age not to exceed age 21.)
® N/A—No minimum age applies("N/A"is the default provision under the Plan if no selection is
made.)
VI. CONTRIBUTION PROVISIONS
1. The Employer shall contribute as follows:(Choose all that apply, but at least one of Options A or B.
If Option A is not selected, Employer must pick up Mandatory Participant Contributions under
Option B.)
Fixed Employer Contributions With or Without Mandatory Participant Contributions.
(If Option B is chosen, please complete section C.)
IZI A. Fixed Employer Contributions.The Employer shall contribute on behalf of each Participant
See App. A %of Earnings or$ forthe Plan Year(subjectto the limitations of
Article V of the Plan).
Mandatory Participant Contributions
❑ are required ®are not required
to be eligible for this Employer Contribution.
® B. Mandatory Participant Contributions for Plan Participation,
Required Mandatory Contributions. A Participant is required to contribute (subject to the
limitations of Article V of the Plan)the specified amounts designated in items(i)through (iii) of
the Contribution Schedule below:
0 Yes ❑ No
Employee Opt-In Mandatory Contributions. To the extent that Mandatory Participant
Contributions are not required by the Plan, each Employee eligible to participate in the Plan
shall be given the opportunity when first eligible to participate in the Plan or any other plan or
arrangement of the Employer described in Code section 219(g)(5)(A), to irrevocably elect to
contribute Mandatory Participant Contributions by electing to contribute the specified amounts
designated in items (i) through (iii) of the Contribution Schedule below for each Plan Year
(subject to the limitations of Article V of the Plan):
®Yes ❑ No
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Contribution Schedule (Any percentage or dollar amount entered below must be greater than
0%or$0.)
i, See App-A%of Earnings,
ii. $ or
a whole percentage of Earnings between the range of 1-20% (insert range of
percentages between 1%and 20%inclusive(e.g.,3%6%, or 20%;5%to 7%)),as designated
by the Employee in accordance with guide- lines and procedures established by the
Employer for the Plan Year as a condition of participation in the Plan.A Participant must pick
a single percentage and shall not have the right to discontinue or vary the rate of such
contributions after becoming a Plan Participant.
Employer "Pick up". The Employer hereby elects to "pick up" the Mandatory Participant
Contributions' (pick up is required if Option A is not selected).
®Yes ❑ No
("Yes"is the default provision under the Plan if no selection is made.)
0 C. Election Window(Complete if Option B is selected:)
Newly eligible Employees shall be provided an election window of 1 days(no more than 60
calendar-days) from the date of initial eligibility during which they may make the election to
participate in the Mandatory Participant Contribution portion of the Plan. Participation in the
Mandatory Participant Contribution portion of the Plan shall begin the first of the month
following the end of the election window.
An Employee's election is irrevocable and shall remain in force until the Employee terminates
employment or ceases to be eligible to participate in the Plan. In the event of re-employment to
an eligible position,the Employee's original election will resume.In no event does the Employee
have the option of receiving the pick-up contribution amount directly.
2. The Employer may also elect to make Employer Matching Contributions as follows:
❑ Fixed Employer Match of After-Tax Voluntary Participant Contributions.(Do not complete this
section unless the Plan permits after-tax Voluntary Participant Contributions under Section VI.3
of the Adoption Agreement.).
The Employer shall contribute on behalf of each Participant % of Earnings for the
Plan Year (subject to the limitations of Article V of the Plan) for each Plan Year that such
Participant has contributed-%of Earnings or$ . Under this option,
there is a single,fixed rate of Employer Contributions, but a Participant may decline to make the
Voluntary Participant Contributions in any Plan Year, in which case no Employer Contribution
will be made on the Participant's behalf in that Plan Year.
Neither an IRS opinion letter nor a determination letter issued to an adopting Employer is a ruling by the Internal
Revenue Service that Participant contributions that are 'picked up" by the Employer are not includable in the
Participant's gross income for federal income tax purposes. Pick-up contributions are not mandated to receive
private letter rulings, however, if an adopting Employer wishes to receive a ruling on pick-up contributions, they
may request one in accordance with Revenue Procedure 2012-4(or subsequent guidance).
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❑ Variable Employer Match of After-Tax Voluntary Participant Contributions. (Do not complete
this section unless the Plan permits after-tax Voluntary Participant Contributions under section
VI.3 of the Adoption Agreement.)
The Employer shall contribute on behalf of each Participant an amount determined as follows
(subject to the limitations of Article V of the Plan):
of the Voluntary Participant Contributions made by the Participant for the Plan
Year(not including Voluntary Participant Contributions exceeding % of Earnings or
PLUS % of the contributions made by the Participant for the Plan Year in excess of
those included in the above paragraph (but not including Voluntary Participant Contributions
exceeding in the aggregate %of Earnings or$ J.
Employer Matching Contributions on behalf of a Participant for a Plan Year shall not exceed
$ or %of Earnings,whichever is❑ more or❑ less
❑ Fixed Employer Match of Participant 457(b) Plan Deferrals.The Employer shall contribute on
behalf of each Participant % of Earnings for the Plan Year (subject to the limitations of
Article V of the Plan)for each Plan Year that such Participant has deferred % of
Earnings or$ to the Employer's 457(b) deferred compensation plan. Under this
option,there is a single,fixed rate of Employer Contributions, but a Participant may decline to
make the required 457(b) deferrals in any Plan Year, in which case no Employer Contribution
will be made on the Participant's behalf in that Plan Year.
❑ Variable Employer Match of Participant 457(b)Plan Deferrals.
The Employer shall contribute on behalf of each Participant an amount determined as follows
(subject to the limitations of Article V of the Plan):
%of the elective deferrals made by the Participant to the Employer's 457(b)plan for the
Plan Year(not including Participant contributions exceeding % of Earnings or
PLUS % of the elective deferrals made by the Participant to the Employer's 457(b)
plan for the Plan Year in excess of those included in the above paragraph (but not including
elective deferrals made by a Participant to the Employer's 457(b) plan exceeding in the
aggregate %of Earnings or$ ).
Employer Matching Contributions on behalf of a Participant for a Plan Year shall not exceed
$ or %of Earnings,whichever is ❑ more or❑ less
3. Each Participant may make a Voluntary Participant Contribution,subject to the limitations of Section
4.06 and Article V of the Plan:
❑Yes m No ("No"is the default provision under the Plan if no selection is made.)
4. Employer contributions for a Plan Year shall be contributed to the Trust in accordance with the
following payment schedule (no later than the 15th day of the tenth calendar month following the
end of the calendar year or fiscal year(as applicable depending on the basis on which the Employer
keeps its books) with or within which the particular Limitation Year ends, or in accordance with
applicable law):
❑Weekly 0 Biweekly ❑ Monthly ❑Annually in:
Specify Month
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5. Participant contributions for a Plan Year shall be contributed to the Trust in accordance with the
following payment schedule (no later than the 15th day of the tenth calendar month following the
end of the calendar year or fiscal year(as applicable depending on the basis on which the Employer
keeps its books) with or within which the particular Limitation Year ends, or in accordance with
applicable law):
❑Weekly 10 Biweekly ❑ Monthly ❑Annually in:
Specify Month
6. In the case of a Participant performing qualified military service(as defined in Code section 414(u))
with respect to the Employer:
A. Plan contributions will be made based on differential wage payments:
®Yes ❑ No ("Yes"is the default provision under the Plan if no selection is made.)
B. Participants who die or become disabled will receive Plan contributions with respect to such
service:
❑Yes ® No ("No"is the default provision under the Plan if no selection is made.)
VII. EARNINGS
Earnings,as defined under Section 2.09 of the Plan,shall include:
1. Overtime
Z Yes ❑ No ("No"is the default provision under the Plan if no selection is made.)
2. Bonuses
❑Yes ® No ("No"is the default provision under the Plan if no selection is made.)
3. Other Pay(specifically describe any other types of pay to be included below)
VIII. ROLLOVER PROVISIONS
1. The Employer will permit Rollover Contributions in accordance with Section 4.13 of the Plan:
[ZI Yes ❑ No ("Yes"is the default provision under the Plan if no selection is made.)
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IX. LIMITATION ON ALLOCATIONS
If the Employer maintains or ever maintained another qualified plan in which any Participant in this Plan
is (or was) a participant or could possibly become a participant, the Employer hereby agrees to limit
contributions to all such plans as provided herein, if necessary in order to avoid excess contributions(as
described in Section 5.02 of the Plan).
1. If the Participant is covered under another qualified defined contribution plan maintained by the
Employer,the provisions of Section 5.02(a)through(e)of the Plan will apply unless another method
has been indicated below.
❑ Other Method. (Provide the method under which the plans will limit total Annual Additions to
the Maximum Permissible Amount, and will properly reduce any Excess Amounts, in a manner
that precludes Employer discretion.)
2. The Limitation Year is the following 12 consecutive month period:
X. VESTING PROVISIONS
The Employer hereby specifies the following vesting schedule, subject to (1) the Code's vesting
requirements in effect on September 1, 1974 and(2)the concurrence of the Plan Administrator.(Forthe
blanks below, enter the applicable percentage— from 0 to 100 (with no entry after the year in which
100%is entered), in ascending order.)
The following vesting schedule may apply to a Participant's interest in his/her Employer Contribution
Account. The vesting schedule does not apply to Mandatory Participant Contributions, Rollover
Contributions, Voluntary Participant Contributions, Deductible Employee Contributions, Employee
Designated Final Pay Contributions, and Employee Designated Accrued Leave Contributions, and the
earnings thereon.
Period of Service Completed Percent Vested
Zero 100
One 100 %
Two 100
Three 100
Four 100 %
Five 100
Six 100
Seven 100 oda
Eight 100 oda
Nine 100 %
Ten 100
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XI. WITHDRAWALS AND LOANS
1. In-service distributions are permitted under the Plan after a Participant attains (select one of the
below options):
❑ Normal Retirement Age
VI Age 70'/z("70'/z" is the default provision under the Plan if no selection is made.)
❑ Alternate age(after Normal Retirement Age):
❑ Not permitted at any age
2. A Participant shall be deemed to have a severance from employment solely for purposes of eligibility
to receive distributions from the Plan during any period the individual is performing service in the
uniformed services for more than 30 days.
❑Yes IVI No ("Yes"is the default provision under the Plan if no selection is made.)
3. Tax-free distributions of up to$3,000 for the direct payment of Qualified Health Insurance Premiums
for Eligible Retired Public Safety Officers are available underthe Plan.
❑Yes 0 No ("No"is the default provision under the Plan if no selection is made.)
4. In-service distributions of the Rollover Account are permitted under the Plan,as provided in Section
9.07.
❑Yes lZNo ("No"is the default provision under the Plan if no selection is made.)
5. Loans are permitted under the Plan, as provided in Article XIII of the Plan:
❑Yes [ZNo ("No"is the default provision under the Plan if no selection is made.)
XII. SPOUSAL PROTECTION
The Plan will provide the following level of spousal protection(select one):
❑ 1. Participant Directed Election. The normal form of payment of benefits under the Plan is a lump
sum. The Participant can name any person(s) as the Beneficiary of the Plan, with no spousal
consent required.
® 2. Beneficiary Spousal Consent Election(Article XII of the Plan will apply if option 2 is selected).The
normal form of payment of benefits under the Plan is a lump sum. Up-on death, the surviving
spouse is the Beneficiary, unless he or she consents to the Participant's naming another
Beneficiary.('Beneficiary Spousal Consent Election"is the default provision under the Plan if no
selection is made.)
❑ 3. QJSA Election (Article XVII). The normal form of payment of benefits under the Plan is a 50%
qualified joint and survivor annuity with the spouse(or life annuity, if single). In the event of the
Participant's death prior to commencing payments,the spouse will receive an annuity for his or
her lifetime. (If option 3 is selected, the spousal consent requirements in Article XII of the Plan
also will apply.)
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XIII. FINAL PAY CONTRIBUTIONS
(Under the Plan's definitions, Earnings automatically include leave cashouts paid by the later of 2'/z
months after severance from employment or the end of the calendar year. If the Plan will provide
additional contributions based on the Participant's final paycheck attributable to Accrued Leave, please
provide instructions in this section. Otherwise, leave this section blank.)
The Plan will provide for Final Pay Contributions if either 1 or 2 below is selected.The following group
of Employees shall be eligible for Final Pay Contributions:
1. Employees within the Covered Employment Classification identified in section V of the Adoption
Agreement.
❑ 2. Other.
(This must be a subset of the Covered Employment Classification identified in section V of the
Adoption Agreement.)
Final Pay shall be defined as(select one):
❑ A.Accrued unpaid vacation
❑ B.Accrued unpaid sick leave
❑ C.Accrued unpaid vacation and sick leave
[ZI D. Other(insert definition of Final Pay— must be leave that Employee would have been able to use
if employment had continued and must be bona fide vacation and/or sick leave):
See appendix A
Z 1. Employer Final Pay Contribution. The Employer shall contribute on behalf of each Participant
See App. A%of their Final Pay to the Plan(subject to the limitations of Article V of the Plan).
❑ 2. Employee Designated Final Pay Contribution. Each Employee eligible to participate in the Plan
shall be given the opportunity at enrollment to irrevocably elect to contribute %
(insert fixed percentage of Final Pay to be contributed)or up to % (insert maximum
percentage of Final Pay to be contributed)of Final Pay to the Plan(subjectto the limitations of Article
V of the Plan).
Once elected, an Employee's election shall remain in force and may not be revised or revoked.
XIV. ACCRUED LEAVE CONTRIBUTIONS
The Plan will provide for unpaid Accrued Leave Contributions annually if either 1 or 2 is selected below.
The following group of Employees shall be eligible for Accrued Leave Contributions:
❑ 1. Employees within the Covered Employment Classification identified in section V of the Adoption
Agreement.
❑ 2. Other.
(This must be a subset of the Covered Employment Classification identified in section V of the
Adoption Agreement.)
MissionSquare Retirement Governmental Money Purchase Plan Adoption Agreement 10
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Page 15 of 18
Accrued Leave shall be defined as(select one):
❑ A. Accrued unpaid vacation
❑ B. Accrued unpaid sick leave
❑ C. Accrued unpaid vacation and sick leave
❑ D. Other(insert definition of Accrued Leave that is bona fide vacation and/or sick leave):
❑ 1. Employer Accrued Leave Contribution.The Employer shall contribute as follows(choose one of
the following options):
❑ For each Plan Year,the Employer shall contribute on behalf of each eligible Participant the
unused Accrued Leave in excess of (insert number of ❑ hours ❑ days ❑ weeks
(check one))to the Plan(subject to the limitations of Article V of the Plan).
❑ For each Plan Year, the Employer shall contribute on behalf of each eligible Participant
%of unused Accrued Leave to the Plan(subject to the limitations of Article V of
the Plan).
❑ 2. Employee Designated Accrued Leave Contribution.
Each eligible Participant shall be given the opportunity at enrollment to irrevocably elect to
annually contribute_% (insert fixed percentage of unpaid Accrued Leave to be
contributed)or up to %(insert maximum percentage of unpaid Accrued Leave to be
contributed)of Accrued Leave to the Plan(subject to the limitations of Article V of the Plan).Once
elected, an Employee's election shall remain in force and may not be revised or revoked.
XV. The Employer hereby attests that it is a unit of state or local government or an agency or instrumentality
of one or more units of state or local government.
XVI. The Employer understands that this Adoption Agreement is to be used with only the MissionSquare
Retirement Governmental Money Purchase Plan. This MissionSquare Retirement Governmental Money
Purchase Plan is a restatement of a previous plan, which was submitted to the Internal Revenue Service
for approval on December 31,2018 and received approval on June 30, 2020.
The Plan Administrator will inform the Employer of any amendments to the Plan made pursuant to
Section 14.05 of the Plan or of the discontinuance or abandonment of the Plan. The Employer
understands that an amendment(s) made pursuant to Section 14.05 of the Plan will become effective
within 30 days of notice of the amendment(s) unless the Employer
notifies the Plan Administrator, in writing,that it disapproves of the amendment(s). If the Employer so
disapproves,the Plan Administrator will be under no obligation to act as Administrator under the Plan.
XVII. The Employer hereby appoints the ICMA Retirement Corporation, doing business as MissionSquare
Retirement, as the Plan Administrator pursuant to the terms and conditions of the MISSIONSQUARE
RETIREMENT GOVERNMENTAL MONEY PURCHASE PLAN.
The Employer hereby agrees to the provisions of the Plan.
MissionSquare Retirement Governmental Money Purchase Plan Adoption Agreement 11
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XVIII. The Employer understands that it must complete a new Adoption Agreement upon first adoption of the
Plan.Additionally, upon any modifications to a prior election, making of new elections, or restatements
of the Plan, a new Adoption Agreement must be completed. The Employer hereby acknowledges it
understands that failure to properly fill outthis Adoption Agreement may result in disqualification of the
Plan.
XIX. An adopting Employer may rely on an Opinion Letter issued by the Internal Revenue Service as evidence
that the Plan is qualified under section 401 of the Internal Revenue Code only to the extent provided in
Rev. Proc. 2017-41.The Employer may not rely on the Opinion Letter in certain other circumstances or
with respect to certain qualification requirements, which are specified in the Opinion Letter issued with
respect to the Plan and in Rev. Proc.2017-41.
In Witness Whereof, the Employer hereby causes this Money Purchase Plan Adoption Agreement to be
executed.
EMPLOYER SIGNATURE&DATE
Signature of Authorized Plan Representative:
Print Name: T. Kevin Mizuno
Title: Finance Manager/Plan Administrator
Attest:
Date: 05 / 05 2022
Month Day Year
For inquiries regarding adoption of the plan,the meaning of plan provisions,orthe effect of the Opinion Letter,
contact:
MissionSquare Retirement
777 N.Capitol St. NE Suite 600
Washington, DC 20002
800-326-7272
52582-0621-W1303
MissionSquare Retirement Governmental Money Purchase Plan Adoption Agreement 12
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Attachment 2
APPENDIX A
CENTRAL CONTRA COSTA SANITARY DISTRICT
401(A) MONEY PURCHASE PLAN & TRUST
COVERED EMPLOYMENT CLASSIFICATIONS
Section V—Covered Employment Classifications: Employees in the following classifications are eligible
to participate in the Plan: Employees who are represented by the Employees' Association, Public
Employees Union, Local 1 (Local 1), the Management Support/Confidential Group (MS/CG), and the
Management Group (Management), Unrepresented At-Will Employees (Unrepresented At-Will), and the
General Manager.
CONTRIBUTIONS
Section VIA.A—Fixed Employer Contributions: The Employer shall contribute to the Plan each payroll
period on behalf of each Participant hired by the Employer before April 1, 1986, the equivalent of the
Social Security maximum (Employer portion), including the Medicare percentage, and for each
Participant hired on or after April 1, 1986,the Social Security maximum (employer portion) excluding
Medicare percentage.
For the General Manager only,the Employer shall also contribute to the Plan for the 2021 Plan Year a
one-time contribution of$33,423.50.
The Employer shall contribute $400 each month to the Plan on behalf of each Participant who is not
enrolled in Employer-provided group health plan coverage because the Participant is enrolled in other
group health plan coverage.
Section V1.1.6—Required Mandatory Contributions: Effective April 18, 2022, Participants who are
Unrepresented At-Will Employees shall be required to contribute Required Mandatory Contributions by
pre-tax salary reduction picked up by the Employer equal to the percentage of base pay specified in the
table below:
Employee Attributes as of 2022 Unrepresented Salary Contribution
Resolution Adoption Date:
Annual compensation exceeding$200,000, but not exceeding 8%of base pay each pay period
$250,000
Annual compensation exceeding$250,000 12.5%of base pay each pay period
Annual compensation of less than $200,000 2%of base pay each pay period
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Appendix A—Page 2 of 2
TERMINAL COMPENSATION
Section XIII—Final Pay Contributions: A portion of each Participant's Terminal Compensation shall be
contributed by the Employer upon termination of the Participant's employment with the Employer
based on the Participant's Bargaining Group as follows:
Bargaining Group Terminal Compensation Portion of the Participant's
Terminal Compensation to be
Contributed by the Employer
Local 1 More than $10,000 50%
Between $5,000 and $10,000 25%
Less than $5,000 0%
MS/CG, Management, and Not specified 100%
Unrepresented At-Will
For purposes of this Appendix A,the term Terminal Compensation shall mean a Participant's accrued
unused vacation, sick leave, earned overtime, and holiday comp pay (to the extent of the amount any of
the preceding are payable to employees upon termination per the relevant MOU or resolution).
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