A. The Phoenix Employees’ Deferred Compensation Program is established to provide one or more tax deferred annuity plans, eligible deferred compensation plans, or qualified defined contribution retirement plans to City employees. The purposes of the program are to enable the City to attract, employ and retain persons of competence, and to provide a program of deferred compensation benefits for all employees in accordance with the provisions of the program.

B. It is the intent that the program and all necessary aspects conform both to the requirements for qualified retirement plans imposed by section 401(a) of the Internal Revenue Code of 1986, as amended, and all regulations promulgated thereunder, and to the requirements for eligible deferred compensation plans imposed by section 457 of the Internal Revenue Code of 1986, as amended, and all regulations promulgated thereunder. With respect to amounts designated as employer pick-up contributions to a qualified retirement plan under section 414(h)(2) of the Internal Revenue Code of 1986, as amended, such contributions, although designated as employee contributions, shall be paid into the plan by the City in lieu of contributions by the employee. No employee shall be given the option of choosing to receive the contributed amounts directly instead of having the contributions paid by the City into the qualified retirement plan.

C. The assets of the program, including all deferred compensation contributions, property, rights purchased with deferred compensation, and all income attributable to such assets, are held in trust by the Phoenix Employees’ Deferred Compensation Board for the exclusive benefit of participating employees and their beneficiaries. The trust is intended to be exempt from taxation under sections 401(a), 457(g) and 501(a) of the Internal Revenue Code of 1986, as amended. The responsibility for the assets in the Deferred Compensation Program Trust on the effective date of this article automatically pass to the Phoenix Employees’ Deferred Compensation Board as reconstituted by this article. (Ord. No. G-4634, § 3, 2004)