EMPLOYEES' SALARY REDUCTION AND SHELTERED ANNUITY RETIREMENT PLAN

Kansas City Code ch. 2, art. IX, div. 7

in effect

Kansas City Code § 2-1361 Purpose.

Sec. 2-1361. - Purpose. The purpose of the program established by this division is to make available to city officials, officers, employees, and independent contractors who may qualify, tax deferred compensation programs under section 457 of the code to augment the security of such individuals during their retirement years. (Ord. No. 980479, § 1, 5-21-98)

Kansas City Code § 2-1362 Definitions.

Sec. 2-1362. - Definitions. The following words and phrases as used in this division shall have the following meanings, unless a different meaning is plainly required by the context: Board means the Board of Trustees of the Trust as provided for in section 2-1365. Code means the Internal Revenue Code of 1986, as amended, and includes any regulations thereunder. Employee means any person who performs services for the city, either as a city official, an employee or an independent contractor, to whom compensation is paid on a regular basis. Investment options means any funding vehicle which the board permits under the terms of the program. Participant means an employee or former employee who has been enrolled in the program and who retains the rights to benefits under the program. Plan means a plan described in section 457 of the code adopted by the board on behalf of the city for the benefit of employees pursuant to section 2-1363. Program means this Kansas City Employees' Deferred Compensation Program as set forth herein and as may be amended from time to time. The term "program" also encompasses the term "plan." Trust means the Kansas City Employees' Deferred Compensation Trust established pursuant to the program under section 2-1365. (Ord. No. 980479, § 1, 5-21-98)

Kansas City Code § 2-1363 Adoption of plans.

Sec. 2-1363. - Adoption of plans. (a) Authorization to adopt plans. The board, on behalf of the city and pursuant to the program is authorized to adopt, continue, cancel or allow to lapse a plan or plans, including the plans that the city has contracted for as of the date of the current amendments to sections 2-1361 through 2-1365, subject to the following restrictions: (1) No city funds are to be contributed pursuant to the program. (2) The city shall not be responsible for any loss due to the investment or failure of the investment of funds and assets held pursuant to the program, nor shall the city be required to replace any loss whatsoever which may result from such investments, or failure to make investments. (3) All contributions pursuant to this program, together with interest, accumulations and increments thereon, shall be contributed to and held under the trust for the exclusive benefit of the participants until such time as such funds or assets are distributed to participants and beneficiaries in accordance with the provisions of a plan. (b) Salary reduction agreements. The director of finance of the city, or the director's duly authorized representative, is hereby authorized to enter into salary reduction agreements with an employee, whereby an employee designates a portion of the employee's failure compensation to be deducted by the city and transferred to the trust to provide tax sheltered retirement benefits to the employee upon the employee's retirement pursuant to a plan. (Ord. No. 980479, § 1, 5-21-98; Ord. No. 140976, § 5, 12-11-14)

Kansas City Code § 2-1364 Administration of program.

Sec. 2-1364. - Administration of program. (a) The board shall administer the program. The responsibilities and authority of the board shall be to: (1) Maintain a plan or plans whereby participants may direct and control the investment of their contributions, together with accumulated earnings, among various investment options and select and make available such investment options. (2) The members of the board may be insured against fiduciary and liability claims relating to program administration by insurance coverage on their behalf. The premium expense of such coverage shall be paid, at the election of the city, either by the city or from funds of the trust. (3) Establish a budget for the costs of the administration of the program. Such expenses shall be paid from the trust and charged to the accounts of participants. (4) Pay benefits pursuant to the plans and related taxes from the trust consistent with the provisions of the plans. (5) Obtain, by employment or contract, the services necessary to administer the program, including actuarial, custodial, investment and legal services. (6) Procure and dispose of goods and property of the trust necessary to administer the program. (b) The director of human resources of the city shall appoint a program administrator/secretary. The program administrator/secretary shall attend all meetings of the board and shall conduct the program in accordance with the board's directives. The program administrator/secretary shall take and retain all meeting records. (c) The director of finance of the city, or the director's duly authorized representative, shall maintain accounting and financial records of the program and shall establish such ledger accounts as are necessary and appropriate to the efficient operation of the program. The accounting and financial records of the program shall be maintained in accordance with generally accepted accounting principles, consistently applied. (d) The judgments of the board made in administration of the program shall be even handed, treating all persons in similar circumstances alike. (e) The board shall have sole discretionary responsibility for the operation, interpretation, and administration of the program and for determining eligibility for program benefits. Any action taken on any matter within the discretion of the board shall be final, conclusive and binding on all parties. In order to discharge its duties hereunder, the board shall have the power and authority to adopt, interpret, alter, amend or revoke rules and regulations necessary to administer the program, to delegate ministerial duties and to employ such outside professionals as may be required for prudent administration of the program. A member of the board who is otherwise eligible may participate in the program, but shall not be entitled to make decisions solely with respect to the member's own participation and benefits under the program. (f) Notwithstanding any other provision of the program to the contrary, all or any part of the benefits of a former participant shall, instead of being distributed in accordance with the terms of the plans, be transferred to another eligible deferred compensation plan in which the former participant has become a participant, if (i) the plan receiving such benefits provides acceptance of such transfers; and (ii) the participant provides written direction to the board to make such transfer. The program shall also accept the transfer of amounts previously deferred by a participant under ether eligible deferred compensation plan. (g) The board shall establish and maintain accounts on behalf of each participant pursuant a plan. Such participant accounts shall be valued at fair market value as of the last day of the program year and such other dates as are necessary for the proper administration of the program, and each participant under the plan shall receive a written accounting of the participant's account balance following such valuation each participant's account balance shall reflect the participant's aggregate salary deferrals (and/or transfer) amounts and any earnings or losses attributable to such amounts, and shall be reduced by administrative, investment and other fees necessary for the administration which are not paid by the city. (h) A participant may request that the participant's salary deferrals be allocated among the available investment options established by the board. The initial allocation request may be made at the time of enrollment. Once made, an investment allocation request shall remain in effect for all subsequent deferrals until changed by the participant. A participant may change the participant's investment allocation by submitting a written request to the board on such form as may be required by the board. Such changes shall become effective as soon as administratively feasible after the board receives such written request. Although the board intends to invest deferrals according to the participant's requests, it reserves the right to invest deferrals without regard to such requests. (Ord. No. 980479, § 1, 5-21-98; Ord. No. 140976, § 5, 12-11-14)

Kansas City Code § 2-1365 Establishment of trust and board of trustees.

Sec. 2-1365. - Establishment of trust and board of trustees. (a) Trustee. The board shall be the trustee of all funds created pursuant to the program and shall, subject to the provisions of section 2-1364(a)(1) set forth above, have full power to invest and reinvest them. Investments may include, but are not limited to, bonds of the United States Government, State of Missouri, municipal corporations including school districts, corporate bonds, real estate mortgages and common and preferred stocks. (b) Membership. The board of trustees shall consist of nine members, including the director of human resources of the city or authorized representative and the director of finance of the city or authorized representative. The city manager shall appoint, for one-year terms each, two trustees recommended by Local 42, International Association of Fire Fighters, two trustees recommended by Local 500, American Federation of State and Municipal Employees, one trustee recommended by Local 3808, International Association of Fire Fighters, and two trustees from the general employee population. Each trustee other than the director of human resources of the city and the director of finance of the city must be a participant. (c) Compensation. The board members shall not receive compensation for their services but shall be reimbursed by the general funds of the trust for all necessary expenses incurred on behalf of the program and the trust. (d) Organization. The board shall prescribe such rules, regulations, forms and procedures as are necessary to administer the trust. Each member shall be entitled to one vote. A majority of four trustees shall constitute a quorum and a majority of a quorum shall be required for any decision. The board shall elect a chairman and such other officers as it deems necessary from its membership by majority vote. (e) Asset transfer. On or before December 31, 1998, the city shall cause to be transferred to the trust all assets held by the city which fund all plans. (Ord. No. 980479, § 1, 5-21-98; Ord. No. 080896, § 1, 9-11-08; Ord. No. 140976, § 5, 12-11-14)

Kansas City Code § 2-1366 Assignment of rights.

Sec. 2-1366. - Assignment of rights. Neither the participant, nor the participant's beneficiary, nor any other designee, shall have any right to commute, sell, assign, transfer, encumber or otherwise convey the right to receive any payments under the program, which payments and rights thereto are expressly declared to be nonassignable and nontransferable. In the event of any attempted assignment or transfer, the city shall have no further liability under the program. Payments shall not be subject to attachment, garnishment or execution, or be transferable by operation of law in the event of bankruptcy or insolvency, except to the extent otherwise provided by law. Notwithstanding any of the foregoing benefits shall be paid in accordance with the applicable requirements of any legal domestic relations order. (Ord. No. 980479, § 1, 5-21-98; Ord. No. 020226, § 1, 3-28-02; Ord. No. 140976, § 5, 12-11-14)

Kansas City Code § 2-1367 Miscellaneous.

Sec. 2-1367. - Miscellaneous. (a) Limitation of rights; employment relationship. Neither the establishment of this program nor any modification thereof, nor the creation of any fund or account, nor the payment of any benefits under the plans, shall be construed as giving a participant or any other person legal or equitable rights against the city. In no event shall the terms of employment or independent contractor relationship of any employee be modified or any way be affected by the program. (b) Representations. The city does not represent or guarantee that any particular federal or state income, payroll, personal property or other tax consequences will result from participation in this program. (c) Severability. If a court of competent jurisdiction holds any provision of this program to be invalid or unenforceable, the remaining provisions of the plan shall continue to be fully effective. (d) Amendment and termination. The city may amend the provisions of this program at any time; provided, however, that no amendment, including current amendments to these ordinances, 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 under this program prior to and subsequent to the amendment. The city may terminate or discontinue the program at anytime without liability for such termination or discontinuance. Upon program termination, all salary deferrals shall cease. The board shall retain each participant's salary deferrals (and the earnings and losses thereon) until distribution of benefits commences under the terms of the plans. (Ord. No. 980479, § 1, 5-21-98)

Source: City of Kansas City, Missouri, Code of Ordinances, Charter and Zoning and Development Code (Municode Library, library.municode.com)URL: https://library.municode.com/mo/kansas_city/codes/code_of_ordinances?nodeId=PTIICOOR_CH2AD_ARTIXPEOTBE_DIV7EMSARESHANREPLFetched: 10/28/2026