Town of Chesapeake Beach, MD Article XIV Supplemental Benefits

[Added 10-18-2007 by Ord. No. O-07-8]

§ 50-60 Retirement, pension, deferred compensation, group insurance and qualified plans.

Qualified employees may be entitled to participate in retirement, pension, group insurance (life or disability), deferred compensation, or other employee benefit plans. The Town Council shall, by resolution, establish the conditions upon which employees qualify for such participation, in accordance with the plans adopted pursuant to § 50-62 of this article. Subject to federal and state law, the Town Council shall have the right, at any time and for any purpose, to alter, amend, or discontinue any such plan and the conditions upon which employees qualify for such plans. Nothing in this section shall require an employee to qualify for any or all of the plans authorized by this section.

§ 50-61 Adoption, amendment, and discontinuance of plans.

A. The Town Council shall, by resolution, have the authority to:

(1) Adopt, alter, amend, or discontinue any retirement, pension, group insurance (life, health or disability), deferred compensation, or other employee benefit plans allowed by federal and state law, including but not limited to plans that are identified as qualified plans under federal and state tax law;

(2) Establish and amend the criteria for an employee's qualification to participate in some or all of the benefits provided by any plan adopted pursuant to this section, including but not limited to the service requirements, minimum age, retirement age;

(3) Establish and amend the scope of coverage, benefits and characteristics of any plan adopted pursuant to this section, including but not limited to the criteria for the vesting of benefits, the contribution levels for both the employer and employee, the scope and amount of compensation used to determine matching contributions, the effective date, the plan year, loan requirements, and all other matters required for the establishment, administration, and funding of the plans;

(4) Establish and amend any form of trust agreement, plan document, or contractual agreement necessary to implement any plan and to authorize the Mayor to execute such documents;

(5) Appoint, discontinue, or change the plan administrator for any given plan, including a third-party administrator (by contract) who is not an employee of the Town;

(6) Establish any fees, charges or costs associated with such plans and the party responsible for the payment of same;

(7) Seek a determination letter or other evidence that a plan is qualified, consistent with the requirements of the plan and the plan administrator's contract; and

(8) In addition to the authority provided in Subsection B hereof, establish the contribution levels and appropriate such funds as are necessary to fund the plans, including matching requirements and contribution levels, and to pay costs, fees, and expenses of implementing and administering the plans.

B. The Town Council may establish the Town's contribution levels for any given year, appropriate such funds as are necessary to fund the plans authorized by this section, including matching requirements and contribution levels, and pay costs, fees, and expenses of implementing and administering the plans, in the annual budget ordinance of the Town.