HomeMy WebLinkAboutResolution 98-45 06/22/1998
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SPRINGFIELD
NO. 98- 45
A RESOLUTION RESTATING THE CITY OF SPRINGFIELD, OREGON RETIREMENT
PLAN TRUST; APPOINTING WELLS FARGO BANK, N .A., AS TRUSTEE UNDER SUCH
TRUST; AUTHORIZING THE CITY MANAGER AS THE PLAN ADMINISTRATOR AND
COMMITTEE UNDER THE CITY OF SPRINGFIELD, OREGON RETIREMENT PLAN
AND SUCH TRUST TO APPOINT ADDITIONAL PERSONS TO ACT FOR THE PLAN
ADMINISTRATOR AND COMMITTEE; AND APPOINTING WELLS FARGO BANK, N .A.,
AS INVESTMENT MANAGER UNDER SUCH TRUST.
WHEREAS, by Resolution No. 98-08 the City of Springfield adopted the City of
Springfield, Oregon Retirement Plan Trust (the "Trust"); and
WHEREAS, the City of Springfield desires to restate the Trust to appoint Wells Fargo
Bank, N.A., as Trustee and to allow Wells Fargo Bank, N.A., to be appointed Investment
Manager as provided in this Resolution; and
WHEREAS, the City of Springfield desires to authorize the City Manager as the Plan
Administrator and committee under the City of Springfield, Oregon Retirement Plan (the "Plan")
and the Trust to appoint additional persons to act for the Plan Administrator and committee; and
. WHEREAS, Sections 4.1 and 4.4 of the Trust as restated in this Resolution authorize the
Common Council of the City of Springfield to appoint an Investment Manager to manage and
direct the investment of the Trust Fund; and
WHEREAS, the City of Springfield desires to appoint Wells Fargo Bank, N.A., as
Investment Manager;
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Springfield
as follows:
Section 1. The Trust is restated as attached and made a part of this resolution. Wells
Fargo Bank, N .A., is appointed Trustee under the Trust as restated. The Trust as restated shall
be effective on the date determined by the City Manager.
Section 2. Upon and after the effective date of the Trust as restated in this Resolution,
the City of Springfield shall continue to serve as a Trustee under the Trust with respect to the
assets of the Plan and Trust under its control, pursuant to the provisions of the Trust in effect
immediately before the restatement of the Trust in this Resolution, but only for the purpose of
transferring those assets to Wells Fargo Bank, N.A., as Trustee as soon as administratively
feasible.
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RESOLUTION NO. 98- 45
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Section 3. The City Manager as the Plan Administrator and committee under the Plan
and Trust is authorized to appoint persons to assist in performing the responsibilities of the Plan
Administrator and committee, and the Trustee and Investment Manager under the Plan and Trust
may rely on the actions of anyone of such appointed persons as the acts of the Plan
Administrator and committee.
Section 4. Pursuant to Sections 4.1 and 4.4 of the Trust as restated in this Resolution,
Wells 'Fargo Bank, N.A., is appointed Investment Manager to manage and direct the investment
of the Trust Fund. This appointment shall be effective upon the date provided in the agreement
referred to in Section 5 of this Resolution.
Section 5. The City Manager is directed to negotiate and execute an agreement with
Wells Fargo Bank, N.A., under which it assumes the office of Investment Manager as provided
in this Resolution.
Section 6. The City Manager is directed to determine the effective date of the Trust as
restated in this Resolution, to execute such Trust, and to execute such other documents and to
take such other actions as the City Manager deems appropriate to facilitate the appointment of
Wells Fargo Bank, N.A., as Trustee and Investment Manager.
ADOPTED by the Common Council and approved by the Mayor of the City of
Springfield this 22nd day of June, 1998.
ADOPTED by a vote of ~ for and ~ against.
~~~
Mayor
ATTEST:
~w~
ce.v Recorder
REVIEWED ~ APPROVED
A~OfOIAM
\\ >~~,\ -.J, L-~-A\-\-'{
DATE: b I I C:. \ '1 ~
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OFFICE OF CITY ATTORNEY
RESOLUTION NO. 98- 45
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REST A TED RETIREMENT PLAN
OF
CITY OF SPRINGFIELD, OREGON
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Restated January 20, 1998
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HERSHNER. HUNTER. ANDREWS. NEILL& SMITH. LLP
LAW OFFICES
P.O. BOX 1475
EUGENE. OREGON 97440
FAX (541) 344.2025
TELEPHONE(541) 686-8511
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- . RESTATED CITY OF SPRiNGFIELD, OREGON
RETIREMENT PLAN
. Table of Contents
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SECTION 1. PURPOSE; EFFECTIVE DATE; GOVERNMENTAL PLAN 1
SECTION 2. D EFINITI 0 N S 2
SECTION 3. ELIGIBILITY AND PARTICIPATION 5
SECTION 4. CONTRIBUTIONS 7
SECTION 5. CREDITS FOR SERVICE 8
SECTION 6. ADDITIONAL BENEFIT TO MATCH PERS BENEFIT
INCREASES 11
SECTION 7. VESTING 15
SECTION 8. DISTRIBUTION OF BENEFITS 16
. SECTION 9. LIMITS ON BENEFITS AND' CONSIDERED
.' COMPENSA nON 21
SECTION 10. RIGHTS AND DUTIES OF PLAN ADMINISTRATOR 23
SECTION 11. AMENDMENT; TERMINATION; MERGER; EXCLUSIVE
BENEFIT 25
SECTION 12. CLAIMS PROCEDURE 27
SECTION 13. MISCELLANEOUS 28
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RESTATED CIT'y OFSfRINGFIELD, OREGON
RETIREMENT PLAN
PARTY:
CITY OF SPRINGFIELD, OREGON, an Oregon municipality (Employer)
RECIT ALS:
A. This Plan is a continuation of the restated City of Springfield, Oregon Retirement
Plan adopted May 15, 1995, and restated September 3, 1996, and May 5, 1997.
B. For purposes of comparability of this Plan to the Oregon Public Employees
Retirement System, the benefits provided under the Plan shall be aggregated with any group term
life insurance program, medical benefit plan and disability income program established and
maintained by the Employer for such purpose.
SECTION 1.
PURPOSE; EFFECTIVE DATE; GOVER1\fi\1ENT AL PLAN
1.1. .' PURPOSE. The purpose of this Plan is to provide certain of the
Employees of the Employer with funds on their retirement in the form of a cash balance plan.
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1.2. EFFECTIVE DATE. The effective date of this Restated Plan is January
1, 1998. However, the changes made to Sections 6.6., 8., 9. 1., and 9.2. (which were Sections
19.6, 11, 9, and 4.5.a., respectively, of the Plan as stated immediately before the January 20,
1998, restatement of the Plan) are effective July 1, 1997.
1.3. GOVERNMENTAL PLAN. This Plan is intended to be a governmental
plan as defined in IRC Section 414(d).
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SEC+JON 2.
DEFINITIONS
2.1, Accounts: The accounts maintained under the Plan for Participants, which
consist of the following accounts:
a. Employee Required Contribution Account: A Participant's account
attributable to required contributions made to the Plan pursuant to the predecessor plan.
b. Employer Contribution Account: A Participant's Employer Contribution
Account described in Sections 2.2. and 5.1.
c. Pick-up Account: A Participant's Pick-up Account described in Sections
2.2. and 5.1.
d. Voluntary Contribution Account: A Participant's Voluntary Contribution
Account described in Sections 2.2. and 4.3.
2.2. Accrued Benefit: A Participant's Accrued Benefit consists of the
undistributed sum of:
a. The balance, if any, as of December 31, 1997, of the Participant's
Accounts (which shall include the credited rate of return on those Accounts for the period July
1, 1997, through~ December 31, 1997, at the applicable rates provided in Section 7.3 as stated
immediately before the January 20, 1998, restatement of the Plan);
b. The sum, as of the date benefits are detennined under the Plan, of credits
to the Partic i pant's Accounts under Section 5.1. for calendar months after December 31, 1997;
and
c. The Participant's benefit, if any, under Section 5.2. for service before May
1, 1963.
2.3. Disability: Shall be total and pennanent disability while employed by the
Employer so that the Participant is unable to perfonn all of the essential duties of any occupation
for which the Participant is or for which the Participant may reasonably be qualified based on
the Participant's education, training or experience.
2.4. Employee: Any employee of the Employer
2.5. Employer: CITY OF SPRINGFIELD, OREGON.
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2,6. Employment Commence!11~nt Date: The first day on which the Employee
is employed by the Employer.
2.7. Insurance Company: The insurer or insurers that have contracted with the
Plan Administrator to provide annuity or installment contracts under the Plan.
2.8. IRe: The Internal Revenue Code of 1986, as amended.
2.9. Monthly Earnings: Regular salary and wages of the Participant not
including bonuses, overtime pay, or other special allowances or compensation. However, for
a Public Safety Employee, Monthly Earnings means regular salary and wages of the Participant
and overtime pay and other special allowances and compensation.
2.10. Normal Retirement Age: Fifty-five (55) years of age for Public Safety
Employees and Sixty (60) years of age for all other Employees.
2.11. Participant: Any person who has met the requirements to become a
Participant stated in Section 3.2. and who remains eligible under Section 3.1. to participate in
the Plan.
2.12. Plan: The Retirement Plan embodied herein.
2.13. Plan Administrator: The Employer named above including any committee
established by it to perfonn the functions of the Plan Administrator.
2.14. .:
PlanName: CITY OF SPRINGFIELD, OREGON RETIREMENT PLAN.
2.15.
day of June.
Plan Year: Each consecutive twelve (12) month period ending on the last
2.16. Policy: Group Retirement Policy G-9214 issued to the Employer by
Pacific Life Insurance Company or any other policy or policies purchased by the ,Employer to
provide benefits under the Plan.
2.17. Public Safety Employee: A firefighter or police officer as those terms are
defined in Oregon Revised Statutes 237.610.
2.18. Reemployment Commencement Date: The first day on which the
Participant is rehired.
2.19. Severance of Employment: Permanent termination of employment for any
cause, whether at the request of the Employer or the Employee.
2.20.
the Plan.
Trust: The separate Trust Agreement providing a funding mechanism for
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2.21. Trust Fund: The assets held under the Trust.
2.22.
Trustee: The Trustee under the Trust Agreement.
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SECTJON 3.
ELIGIBILITY AND PARTICIPATION
3.1. PERSONS ELIGIBLE TO PARTICIPATE. The following persons are
eligible to participate in the Plan:
a. The following Employees while employed full-time by the Employer (as
determined in the Employer's sole discretion):
(1) Employees included in the collective bargaining unit represented
by Springfield Police Association who were last hired by the Employer before April 1, 1996,
and are not active members (within the meaning of Oregon Revised Statutes 238.005) of the
Oregon Public Employees Retirement System.
(2) The following Employees while employed by the Employer as
firefighters (as defined in ORS 237.610): GENE HIGHFILL, STEVEN ROEHL, and DANIEL
STUCKY.
, b. The following former Employees who have a Disability, but only with
respect to the crediting provi~ed (a) in Section S.1.a. to the former Employees' Employer
Contribution Accounts for the period described in Section S.1.c. and (b) in Section S.1.d.:
(1) Any former Employee who immediately before the former
Employee's last'Severance of Employment was a Participant in the Plan and was described in
Section 3.1.a.(1) or Section 3.1.a.(2) above.
(2) Any former Employee who as of December 31, 1997, qualified for
credits under Section 4.6 as stated immediately before the January 20, 1998, restatement of the
Plan.
c. Any person who is not eligible to participate in the Plan under Section
3.1.a. or 3.1.b. above and who has an Accrued Benefit, but only with respect to the crediting
provided in Section 5.1.d.
d. No leased employee, as defined in IRC Section 414(n), is eligible to
participate in the Plan.
3.2. WHEN PARTICIPATION BEGINS. An Employee who is eligible to
participate in the Plan shall become a Participant on the first day of the calendar month
coincident with or next following the date on which the Employee completes six (6) consecutive
months of employment with the Employer measured from the Employee's Employment
Commencement Date (or from the Employee's Reemployment Commencement Date, if the
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Employee incurs a Severance of Employmen!. and is rehired). However, a Participant who
incurs a Severance of Employment and:
. a. Is rehired and has an Accrued Benefit under the Plan when rehired shall,
if eligible to participate in the Plan, become a Participant as of the date of the rehire; or
b. Is reinstated to the Participant's position as a matter of legal right or is
recalled consistent with Employer policies, shall for the purpose of this Section 3.2. have the
period between the Participant's Severance of Employment and reinstatement or recall treated
as a period of employment with the Employer.
3.3. NOTICE TO ELIGIBLE EMPLOYEES. The Employer shall notify all
Employees who are eligible to participate in the Plan and shall provide or make available to
them a form of designation of beneficiary and an enrollment form.
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SECTION 4.
CONTRIBUTIONS
4.1. ADMINISTERED ON PLAN YEAR BASIS. This Plan shall be
administered on a Plan Year basis.
4.2. EMPLOYER CONTRIBUTIONS. The Employer shall at least annually
contribute to the Plan the additional amounts, if any, required to fund the benefits provided
under the Plan, other than the benefits provided under Section 6. that have not been distributed,
as determined at least annually by the Plan's actuary.
4.3. EMPLOYEE CONTRIBUTIONS. Any Participant may make
contributions to the Plan for any calendar month, not to exceed 10% of the Participant's Monthly
Earnings for the month. The contributions shall be credited to the Participant's Voluntary
Contribution Account. Within thirty (30) days after the end of each Plan Year or at any time
immediately before an annuity is to be purchased pursuant to Section 8., a Participant may
withdraw, by submitting written notice to the Plan Administrator, the amount of the Participant's
Voluntary Contribution Account.' The Plan Administrator shall distribute the Voluntary
Contribution Account to the Participant within thirty (30) days after receiving the written notice.
4.4. DEPOSIT OF CONTRIBUTIONS. Contributions shall be added to the
Policy or to the Trust Fund as determined by the Employer.
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SECTION 5.
CREDITS FOR SERVICE
5.1. CREDITS AFTER 1997. For periods after December 31, 1997,
Participants' Accounts shall be credited only as provided in this Section 5.1. and in Section 4.3.
a. For each calendar month after December 31, 1997, there shall be credited
to each Participant's Employer Contribution Account and Pick-up Account the following
percentages of the Participant's Monthly Earnings for that month:
Credit to the Participant's Pick-up Account
the percentage stated in the applicable
column below:
If the Participant is
described in a row
in this column:
A Public Safety
Employee
A full-time
Employee who is a
Police Dispatcher or
Property Controller
A full-time
Employee who is
not a Public Safety
Employee, Police
Dispatcher, or
Property Controller
Credit to
:7 Participant's
Employer
Contribution
Account the
percentage stated in
the corresponding
row in this column:
The percentage in
Section 5.1.b.
10%
7%
If the Participant's
Monthly Earnings
for that month are
less than $1,500:
6%'
If the Participant's
Monthly Earnings
for that month are
$1,500 or more:
7%
6%
7%
6%
7%
Whether a Participant is a full-time Employee shall be determined in the Employer's sole
discretion. Partieipants shall be ineligible for the crediting provided in this Section S.l.a. to the
extent provided in Section 3.1.b. and 3.1.c.
b. The percentage in this Section 5.1.b. is the additional percentage required
to cause the retirement benefits provided by the Employer to Participants who are Public Safety
Employees to be "equal to or better than" the benefits which would be provided to them under
the Oregon Public Employees Retirement System. Such determination of comparability shall
Page 8--REST A TED RETIREMENT PLAN
be made by the Plan's actuary, giving consideration to all employee benefits provided to Public
Safety Employees by the Employer and not limited to benefits provided under the Plan.
. c. If a Participant suffers or suffered a Disability before attaining age sixty
(60), the crediting provided in Section 5.I.a. to the Participant's Employer Contribution Account
for the periods described below in this Section 5 .1.c. shall be based on the Participant's Monthly
Earnings and classification (i.e. Public Safety Employee, Police Dispatcher, Property Controller,
or other) as of the date of the Disability and shall be made for the period beginning on the date
the Employee is determined to have a Disability and terminating on the earliest of:
(1) The date the Participant attains age sixty (60); or
(2) The date of the Participant's death; or
(3) The date the Employee is no longer suffering a Disability.
For purposes of the Plan, a Participant's "Accrued Benefit pursuant to Section S.l.c." means
the Participant's (a) credits provided in Section 5.1.a. to the Participant's Employer Contribution
Account pursuant to this SectionS.l.c. and the credits thereon provided in Section 5.l.d. and
(b) credits under Section 4.6 as stated immediately before the January 20, 1998, restatement of
the Plan and th~ credited rate of return thereon through December 31, 1997, as provided in
Section 7.3 as stated immediately before the January 20, 1998, restatement of the Plan and in
Section 2.2.a.
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d. As of the last day of each Plan'Year there shall be credited to each of the
Accounts of each Participant a rate of return of nine percent (9%) per annum.
(1) However, the credited rate of return shall be eight percent (8%) per
annum on the portion of any Participant's Accounts that is attributable to allocations or credits
made after June 30, 1994 (and the credited rate of return thereon), for Monthly Earnings earned
by the Participant as neither a Public Safety Employee nor as an Employee represented by
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Springfield Police Association. The Plan Administrator may establish separate subsidiary
Accounts for such allocations and credits and the credited rate of return thereon.
(2) For the Plan Year ending June 30, 1998, the credited rate of return
under this Section 5.1.d. shall be made only fo'r the period January 1,1998, through June 30,
1998, and shall not accrue on the portion of the Account that consists of the credited rate of
return on the Account for the period July 1, 1997, through December 31. 1997, as provided in
Section 2.2.a.
(3) Any portion of a Participant's Accounts distributed to the
Participant also shall be credited as provided in this Section S.l.d. through the last calendar
month ending before the date of the distribution.
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5.2. PAST SERVICE BENEEIT. Any Employees who were eligible to enroll
in the Future Service Plan as of May 1, 1963 shall, in addition to the benefits provided in other
Sections of this Plan, be entitled to the following additional benefits. A benefit equal to the
product of one-twelfth (1/12) of one-half percent (1/2 %) of the Participant's Monthly Earnings,
times the number of months in the Participant's period of Credited Employment. For this
purpose, a period of Credited Employment shall mean service with the Employer prior to
coverage under the City of Springfield, Oregon Future Service Plan. Monthly Earnings shall
have the same meaning as otherwise defined in the Plan, but shall be that monthly earning in
effect on May 1, 1963. Benefits provided pursuant to this Section 5.2. shall be distributed as
provided in Section 8. The actuarial assumptions' in determining the benefits under this Section
5.2. shall be:
a. Interest: Nine percent (9%) per year.
b. Mortality: 1971 GAMprojected to 1980 PM Scale E.
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SECTION 6.
ADDITIONAL BENEFIT TO )\IA TCH PERS BENEFIT INCREASES
6.1. PURPOSE. This Section 6. implements the requirement that the Employer
provide increases in benefits for certain Public Safety Employees that are equal to or the
actuarial equivalent of certain increases in benefits under Oregon Public Employees Retirement
System granted in 1991 and 1995 to certain police officers and firefighters. That requirement
and those increases are provided in ORS 237.635 and 237.637 and in 1991 Oregon Laws chapter
796 and 1995 Oregon Laws chapter S69.
6.2. . EXTENT OF BENEFIT. This Section 6. applies to, and only to, the
Eligible Payments of the Eligible Portion of the Accrued Benefit of an Eligible Employee.
a. Eligible Payments are all payments made after December 31, 1990, other
than:
(1) Payments that would have been made before January 1, 1991, but
for the Employee's or beneficiary"s election to defer distribution, as determined in the discretion
of the Plan Administrator.
(2) Payments with respect to an Eligible Employee whose last
Severance of Employment occurred before January 1, 1991, other than periodic payments made
under an annuity contract purchased from 'the Insurance Company. Whether a payment is
periodic shall be ~etermined in the discretion of the Plan Administrator.
b. The Eligible Portion is the part of the Accrued Benefit attributable to .
allocations or credits made with respect to employment as a Public Safety Employee and the
credited rate of return thereon, but excluding any part of the Accrued Benefit attributable to the
Participant's Voluntary Contribution Account. However:
(1) With respect to Accrued Benefit the distribution of which is
deferred a~ the Employee's election, the Eligible Portion excludes earnings credited for periods
after the calendar month in which occurred or occurs the latter of the Employee's Severance of
Employment and the date the Employee attains age SO (including periods after the Employee is
rehired except, if the Employee again becomes a Public Safety Employee before the Employee
attains age 50, periods after the Employee again becomes a Public Safety Employee).
(2) With respect to Accrued Benefit the distribution of which is
deferred at the beneficiary's. election, the Eligible Portion excludes earnings credited for periods
after the calendar month in which occurred or occurs the Employee's death.
c. An Eligible Employee is any Employee who before July 14, 1995. was a
Participant in this Plan as a Public Safety Employee and whose last Severance of Employment
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occurred or occurs while the Employee is a Public Safety Employee and either occurred before
January 1, 1991, for a reason other than the Employee's death or occurred or occurs after
December 31, 1990. for any reason.
6.3. DISTRIBUTION OF BENEFIT. Upon distribution of an Eligible
Employee's Accrued Benefit in a calendar year in which distributions under this Plan are not
exempt from Oregon personal income taxation, the amount of the distribution shall be increased
by the greater of the following amounts:
a. The amount determined by multiplying the Eligible Payments of the
Eligible Portion of the Employee's Accrued Benefit by the following percentage:
If the Employee's months of participation
at the Employee's last Severance of
Employment are
The percentage is
Less than 120
At least 120 but not 240
At least 240 but not 300
300 or more
o percent
1 percent
2-112 percent
4 percent
b. The amount determined by multiplying the Eligible Payments of the
Eligible Portion of the Employee's Accrued Benefit by the percentage determined under the
following formula:
( .~1 - 1"') (
the Employee's months of participation before October 1. 1991 )
the Employee's months of participation
For purposes of this Section 6.3., the Employee shall be credited with a month of participation
for each calendar month for which a contribution was made, or for which a credit under Section
S.1.a. is made, on behalf of the Employee as a Public Safety Employee to the Employee's
Employer Contribution Account. However, months of participation shall not be credited for
months for which credits are made under Section S.1.a. by reason of Section S.1.c. or were
made under Section 4.6 as stated immediately before the January 20, 1998, restatement of the
Plan.
6.4. ADJUSTMENT FOR CHANGES IN TAX RATE. The decimal .91 in
the formula in Section 6.3.b. shall automatically be adjusted as provided in this Section 6.4. to
reflect changes in the maximum Oregon personal income tax rate imposed upon individuals who
are full-year residents of Oregon. An increase in such rate by x percentage points shall cause
such decimal to be reduced by x 100ths, and a reduction in such rate by x percentage points shall
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cause such decimal [0 be increased by x 100ths. For example, following are the decimals that
correspond to particular rates:
If the rate is
The decimal is
7 percent
8 percent
9 percent
10 percent
11 percent
.93
.92
.91
.90
.89
Any such change in the decimal shall be effective only for distributions made on or after the
effective date of the change in such rate. No amount distributed to a Participant or beneficiary
before the change is implemented may be recovered from any person or offset against any
undistributed benefit of any person to account for any such change.
6.5. FUNDING. The benefits provided in this Section 6. shall be funded first
from the assets of the Plan and, if the assets are inadequate, from contributions by the Employer
made by the time the benefits are to be distributed.
6.6. DISTRIBUTIONS BEFORE 1998. The Plan Administrator shall as soon
as administratively feasible cause to be distributed to Eligible Employees (and where applicable
their beneficiaries and alternate payees under qualified domestic relations orders) any benefits
provided under this Section 6. attributable to distributions made before January 1, 1998. The
Plan Administrator shall not add any interest or earnings credit to such benefits for periods after
December 31, 1990. Such benefits shall be distributed in the following forms:
a. In a lump sum distribution if the benefit is attributable to:
(1) A lump sum distribution (including a direct rollover); or
(2) Monthly payments made before January I, 1998, under a distributed
annuity contract.
b. As a supplemental annuity contract if the benefit is attributable to monthly
payments to be made after December 31, 1997, under a distributed annuity contract.
6.7. INTEGRATION WITH PERS. The benefits provided under this Section
6. shall not apply with respect to any portion of an Eligible Employee's Accrued Benefit
transferred to the Oregon Public Employees Retirement System.
6.8. CHANGE OF BENEFIT. The benefits provided under this Section 6. may
be reduced, eliminated, or changed by amendment of this Plan, with respect to service
perfo,rmed before or after the amendment:
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a. To the extent a court Gf competent jurisdiction determines that the
Employer is not required to implement one or more of the provisions of ORS 237.635 and
237.637, 1991 Oregon Laws chapter 796, and 1995 Oregon Laws chapter 569 that by their
terms apply to the Employer.
b. To the extent a court of competent jurisdiction or the Employer determines
that any of the benefits, or the aggregate benefits, provided under this Section 6. are more than
is required to implement the provisions of ORS 237.635 and 237.637, 1991 Oregon Laws
chapter 796, and 1995 Oregon Laws chapter S69.
c. As the Employer determines appropriate to respond to any law modifying
any requirement of ORS 237.635 and 237.637, 1991 Oregon Laws chapter 796, and 1995
Oregon Laws chapter S69.
The Employer also may by amendment of this Plan change the manner in which the Employer
implements the requirement described in Section 6.1. with respect to service performed before
or after the amendment, even though such change may reduce or eliminate the benefits provided
under this Section 6. for all or some Employees.
Any such benefits that are reduced,- eliminated, or changed after they have been distributed may
not be recovered from any person or offset against any undistributed benefit of any person to
account for any such reduction, elimination, or change.
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SECTiON 7.
VESTING
7.1. VESTING. Each Participant shall have a fully vested and nonforfeitable
interest in the Participant's Pick-up Account, Employee Required Contribution Account, and
Voluntary Contribution Account. Each Participant shall have a fully vested and nonforfeitable
interest in the Participant's Employer Contribution Account in the event of the Participant's
death, Disability, or attainment of Normal Retirement Age or upon completing sixty (60) months
of participation in the Plan and/or in the City of Springfield, Oregon Money Purchase Pension
Plan: A month of participation for purposes of this Section 7.1. shall be credited for:
a. Each calendar month before January 1, 1998, for which a contribution was
made on behalf of the Participant pursuant to Section 4.2.a. as stated immediately before the
January 20, 1998, restatement of the Plan;
b. Each calendar month after December 31, 1997, for which a credit is made
on behalf of the Participant pursl.l:ant to Section S.1.a. as stated in and after the January 20,
1998, restatement of the Plan.
c. Each calendar month for which a contribution was made on behalf of the
Participant pursuant to Section 4.2.a. of the City of Springfield, Oregon Money Purchase
Pension Plan.
7.2. .' FORFEITURE. Upon a Participant's Severance of Employment, the
nonvested portion of the Participant's Employer Contribution Account shall be forfeited. The
amount forfeited shall not be applied to increase the benefits of any Participant or beneficiary.
If the Participant is rehired, months of participation for purposes of Section 7.1. shall include
only months of participation completed after the Participant's Reemployment Commencement
Date unless the Participant:
a. Is reinstated to the Participant's position as a matter of legal right; or
b. Is recalled consistent with Employer policies.
Page 15--RESTATED RETIREMENT PLAN
SECTiO:\ 8.
.
DISTRIBUTION OF BENEFITS
8.1. GENERAL. Benefits under the Plan shall be distributed as provided in
this Section 8 . No claim for benefits need be made,
8.2. UPON SEVERANCE OF EYIPLOYMENT.' Upon Severance of
Employment of a Participant other than by death. the Plan Administrator shall cause the
Participant's vested Accrued Benefit to be distributed to the Participant as soon as
administratively feasible; provided, however, that distribution of all but not less than all the
vested Accrued Benefit of a Participant who upon Severance of Employment has a fully vested
interest in the Participant's Employer Contribution Account may at the election of the Participant
be deferred until required to be distributed pursuant to Section 8.3., Section 8.7.: or Section 8.8.
.
8.3. UPON DEATH. Upon the death of a Participant, the Plan Administrator
shall cause the Participant's vested Accrued Benefit to be distributed to the Participant's
beneficiary as soon as administratively feasible, but no later than one (1) year after the
Participant's death; provided, however, that distribution of all but not less than all the portion
of such vested Accrued Benefit the beneficiary of which is the Participant's surviving spouse
may at the election of such spouse be deferred until required to be distributed pursuant to this
Section 8.3. or Section 8.8. For purposes of the Plan, the Participant's beneficiary is the
beneficiary or beneficiaries last selected by the Participant on a form of designation of
beneficiary furnished by the Plan Administrator or. if no beneficiary has been so selected, the
surviving spouse 'of the Participant or, if no beneficiary has been so selected and there is no such
spouse, the estate of the Participant. Upon the death of a surviving spouse who has elected
pursuant to this Section 8.3. to defer distribution, the Plan Administrator shall cause the portion
of such vested Accrued Benefit of which such spouse is the beneficiary to be distributed, as soon
as administratively feasible, in the form of a lump sum distribution to such spouse's estate.
8.4. FORM OF DISTRIBUTION. Upon the first to occur of:
(i) Severance of Employment (unless the Participant or beneficiary has elected
pursuant to Section 8.2. or Section 8'.3. to defer distribution),
(ii) The end of the deferral elected pursuant to Section 8.2. or Section 8.3.,
or
(iil) i The death of a Participant after Severance of Employment (unless the
beneficiary has elected pursuant to Section 8.3. to defer distribution),
the Plan Administrator shall cause the Participant's \'ested Accrued Benefit (not including any
Accrued Benefit pursuant to Section S.l.c.) to be distributed to (he Participant or the
Participant's beneficiary, as the case may be. in such one (1) of the following methods of
.
Page 16--RESTATED RETIREMENT PLAN
b. The Normal Benefit Form, which is equal monthly payments beginning on
the first of the month coincident with or next following the date a valid election is made by the
Participant or the Participant's beneficiary to receive the Normal Benefit Form and terminating
with the later of (1) the last monthly payment prior to the Participant's death (or the
beneficiary's death, where the Normal Benefit Form is elected by the beneficiary), or (2) the one
hundred twentieth (120th) such payment. If the Participant (or beneficiary, where the Normal
Benefit Form is elected by the beneficiary) dies prior to receipt of all such payments, any
remaining payments shall be made to the Participant's beneficiary (or the beneficiary's
beneficiary, where the Normal Benefit Form is elected by the beneficiary).
c. Any other form of annuity or installment option then available from the
Insurance Company; provided, however, that any such form of benefit shall be determined and
made in accordance with regulations issued under IRC Section 401(a)(9), including the minimum
distribution incidental benefit requIrements of Treasury Regulation Section 1.401(a)(9)-2.
.
The amount of the monthly payments to be provided by any annuity purchase or installment
option pursuant to this Section 8.4. shall be determined based on applying the sum of the
Participant's vested Accrued Benefit (not including. any Accrued Benefit pursuant to Section
5.1.c.) and any benefit provided under Section 6. as the premium at the annuity purchase rate
then made avaihible to the Plan by the Insurance Company.
8.S. DISTRIBUTION OF DISABILITY CREDITS. Upon the earlier of (1) the
date the Participant attains age sixty-five (6S) or (2) the date of the Participant's death, the Plan
Administrator shall cause the Participant's Accrued Benefit pursuant Section S.1.c. to be
distributed to the Participant or the Participant's beneficiary, as the case may be, in such one
(1) of the methods of distribution descriqed in Section 8.4.a., 8.4.b., or 8.4.c. (or in a
combination of a lump sum distribution and one of the methods of distribution described in
Section 8.4.b. or 8.4.c.) as the Participant or the Participant's beneficiary, as the case may be,
elects in writing to receive. The amount of the monthly payments to be provided by any annuity
purchase or installment option pursuant to this Section 8. S. shall be determined based on
applying the sum of such Accrued Benefit and any benefit provided under Section 6. as the
premium at the annuity purchase rate then made available to the Plan by the Insurance Company.
8.6. DISTRIBUTION OF PAST SERVICE BENEFIT. A Participant who has
accrued a past service benefit as provided in Section S. 2., shall be eligible to receive, as an
additional benefit, the Normal Benefit Form or a lump sum distribution which is the actuarial
equivalent of the Normal Benefit Form, at the election of the Participant.
.
Page 17--RESTATED RETIREMENT PLAN
.
8.7. LATEST DATE FOR DISTRIBUTION. A Participant shall receive, no
later than April 1st of the following calendar year, a distribution of the Participant's vested
Accrued Benefit as of the end of the calendar year in which the Participant attains age seventy
and one-half (70-112) or retires, whichever is later. Any allocations or credits to the
Participant's Accounts after that date shall be distributed in a lump sum as soon as practicable
as of the end of the Plan Year in each succeeding calendar year.
8.8. STATUTORY REQUIRED DISTRIBUTION RULES. This Section 8.8.
applies only to the extent this Section 8.8. requires a distribution to be made earlier than
otherwise required under this Plan and overrides any distribution options in this Plan inconsistent
with IRe Section 401(a)(9).
a. Despite any other provision of this Plan, the entire interest of each
Participant:
c
(1)
Will be distributed to the Participant no later than the Required
Beginning Date; or
(2) Will be distributed, beginning not later than the Required Beginning
Date, in accordance with Treasury regulations, over the life of the Participant or over the lives
of the Participant and a Designated Beneficiary (or over a period not extending beyond the life
expectancy of the Participant or the life expectancy of the Participant and a Designated
Beneficiary).
.
b. If the distribution of the Participant's interest has begun in accordance with
Section 8.8.a.(2) and the Participant dies before the Participant's entire interest has been
distributed to the Participant, the remaining portion of the Participant's interest will be
distributed at least as rapidly as under the method of distributions being made under Section
8.8.a.(2) as of the date of the Participant's death.
c. If a Participant dies before the distribution of the Participant's interest has
begun in accordance with Section 8.8.a.(2), the entire interest of the Participant will be
distributed within S years after the death of the Participant. However, the S-year rule does not
apply to any portion of the Participant's interest payable to (or for the benefit of) a Designated
Beneficiary; and not later than 1 year after the date of the Participant's death or such later date
as may be prescribed by Treasury regulations distributions (in accordance with Treasury
regulations) of such portion shall begin over the life of the Designated Beneficiary (or over a
period not extending beyond the life expectancy of the Designated Beneficiary).
d~ With respect to a Designated Beneficiary who is the Participant's surviving
spouse:
(1) The date on which the distributions are required to begin for
purposes of the exception to the S-year rule in Section 8.8.c. shall not be earlier than the date
on which the Participant would have attained age 70 1/2; and
.
Page 18--RESTATED RETIREMENT PLAN
(2) If the surviving spouse dies before the distribytions .to the spouse
begin, Sections 8.8.b. and 8.8.c. shall be applied as if (he spouse were the Participant.
.
e.
For purposes of this Section 8,8,: '
(1) "Required Beginning Date" means April 1 of the calendar year
following the calendar year in whic.h the Participant retires or attains age 70 1/2, whichever
occurs later.
(2) "Designated Beneficiary" means any individual designated as a
beneficiary by the Participant.
(3) Any distribution required under the incidental death benefit
requirements of IRC Section 401(a) shall be treated as a distribution required under this Section
8.8.
(4) Despite any other provision of this Plan, distributions will be made
in accordance with the Treasury regulations under IRC Section 401(a)(9), including Treasury
Regulation Section 1.401(a)(9)-2.
.
8.9. DIRECT ROLLOVER. Despite any other provision oflhe Plan that would
otherwise limit'a distributee's election under this Section 8., Section 4.3., or Section 6., a
distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to
have any portion of an eligible rollover distribution paid directly to an eligible retirement plan
specified by the distributee in a direct rollover. The following definitions shall apply to this
Section 8.9.: .'
a. Eligible rollover distribution: An eligible rollover distribution is any
distribution of all or any portion of the balance to the credit of the distributee, except that an
eligible rollover distribution does not include: any distribution that is one of a series of
substantially equal periodic payments (not less frequently than annually) made for the life (or
life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee
and the distributee's designated beneficiary, or for a specified period of ten years or more; any
distribution to the extent such distribution is required under IRC Section 401(a)(9); the portion
of any distribution that is not includible in gross income (determined without regard to the
exclusion for net unrealized appreciation with respect to employer securities); and, unless the
Plan Administrator affirmatively elects to the contrary, any minimum amount permitted by IRC
Section 401(a)(31) and regulations issued thereunder which are permitted to be excluded from
the definition of_eligible rollover distribution.
b. Eligible retirement plan: An eligible retirement plan is an individual
retirement account described in IRC Section 408(a), an individual retirement account described
in IRC Section 408(b), an annuity plan described in IRC Section 403(a), or a qualified trust
desqibed in IRe Section 401(a). that accepts the distributee's eligible rollover distribution.
.
Page 19--REST A TED RETIREMENT PLAN
.
.
.
However, in the case of an eligible rollover distribution to the surviving spouse, an eligible
retirement plan is an individual retirement account or individual retirement annuity.
c. Distributee: A distributee includes an employee or former employee. In
addition, the employee's or former employee's surviving spouse and the employee's or former
employee's spouse or former spouse who is the alternate payee under a qualified domestic
relations order, as defined in IRC Section 414(p), are distributees with regard to the interest of
the spouse or former spouse.
d. Direct rollover: A direct rollover is a payment by the Plan to the eligible
retirement plan specified by the distributee.
8.10. ALTERNATE PAYEE. Upon Severance of Employment ofa Participant
whose accounts were assigned to an alternate payee under a qualified domestic relations order,
the Plan Administrator shall cause the vested benefit of the alternate payee to be distributed, as
soon as administratively feasible, in the fonn of a lump sum distribution to the alternate payee.
Despite the foregoing, such vested benefit shall be distributed in the form of a lump sum
distribution no later than the date required by Treasury regulations under IRC Section 401 (a)(9)
or upon such earlier date provided under the order.
8.11. DEATH OF ALTERNATE PAYEE. Upon the death of an alternate payee
under a qualified domestic relations order, the Plan Administrator shall cause any undistributed
portion of the vested benefit of the alternate payee to be distributed, as soon as administratively
. feasible, in the form of a lump sum distribution to the person or persons last selected by the
alternate payee on a form of designation of beneficiaiy furnished by the Plan Administrator or,
if no person has,been so selected, to the surviving spouse of the alternate payee or, if no person
has been so selected and there is no such surviving spouse, to the estate of the alternate payee.
Despite the foregoing, such undistributed portion shall be distributed in the form of a lump sum
distribution no later than the date required by Treasury regulations under IRC Section 401 (a)(9).
Page 20uREST A TED RETIREMENT PLAN
SECTION 9.
.,
LIMITS ON BENEFITS AND CONSIDERED COi\lPENSA TION
9.1.
LIMIT ON BENEFITS. Despite any other provisions of this Plan:
a. The benefits, contributions, and other additions under this Plan shall not
exceed the limitations imposed by IRC Section 415.
b. With respect to the portion of this Plan that is a defined benefit plan for
purposes of IRC Section 41S, the maximum annual benefit which may be provided under this
Plan will be $90,000. In the case of any participant in more than one such defined benefit plan
of the employer (within the meaning of IRC Sections 414(b), (c), (m) and (0) and 415(h)), all
such plans shall be treated as one plan, and the maximum annual benefit which may be provided
to the participant under this Plan as provided above shall be reduced by the amount of the
aggregate of the annual benefits provided to the participant under such other plans.
.
c. With respect to any portion of this Plan that is a defined contribution plan
for purposes of IRC Section 415: the annual addition to any participant's accounts shall not
exceed the lesser of $30,000 or 25 % of the participant's compensation. In the case of any
particIpant in more than one such defined contribution plan of the employer (within the meaning
of IRC Sections 414(b), (c), (m), and (0) and 41S(h)), all such plans shall be treated as one plan,
and the maximum annual addition to the participant's accounts under this Plan as provided above
shall be reduced by the aggregate of the amount of the annual additions to the participant's
accounts under such other plans.
d. In any case in which an individual is a participant in both the portion of
this Plan that is a defined benefit plan for purposes of IRC Section 41S and any portion of this
Plan that is a defined contribution plan for purposes of IRC Section 415, the sum of the defined
benefit plan fraction (within the meaning of IRC Section 41S(e)) for this Plan and the defined
contribution plan fraction (within the meaning of IRC Section 415(e)) for this Plan for any year
may' not exceed 1.0. If such sum would otherwise exceed 1.0 for such individual, the projected
annual benefit of such individual under this Plan shall be reduced to the extent necessary for
such sum not to exceed 1.0.
e. In any case in which an individual is a participant in both this Plan and
also another defined contribution plan or another defined benefit plan of the employer (within
the meaning of IRC Sections 414(b), (c), (m), and (0) and 415(h)), all defined benefit plans of
such employer shall be treated as one plan, and all defined contributi.on plans of such employer
shall be treated as one plan, and the sum of the defined benefit plan fraction (within the meaning
of IRC Section 415(e)) for such aggregate defined benefit plans and the defined contribution plan
fraction (w.ithin the meaning of IRC Section 415(e)) for such aggregate defined contribution
plan~for any year may not exceed 1.0. If such sum would otherwise exceed 1.0 for such
.
Page 21--RESTAT~D RETIREMENT PLAN
.
.
.
individual, the projected annual benefit of such individual under this Plan shall be reduced to the
extent necessary for such sum not to exceed 1.0.
f. The limitations in this Section 9.1. shall be applied according to
adjustments in and the provisions of IRC Section 415 and Treasury regulations thereunder,
which are incorporated into this Plan by this reference.
g. For purposes of applying IRC Section 415 to this Plan:
(1) "Compensation" means wages within the meaning of IRC Section
3401(a) (for purposes of income tax withholding at source) but determined without regard to any
rules that limit the remuneration included in wages based on the nature or location of the
employment or the services performed (such as the exception for agricultural labor in IRC
Section 3401(a)(2)).
(2) The limitation year shall be the Plan Year.
9.2. UMIT ON CONSIDERED COMPENSATION. The annual compensation
of each Employee taken into account under the Plan in determining Plan allocations or benefit
accruals for any Plan Year is limited to $IS0,000, as adjusted for increases in the cost of living
in accordance with IRC Section 401(a)(17)(B). The annual compensation limit under IRC
Section 401(a)(17) is incorporated into the Plan by this reference.
Page 22--REST A TED RETIREMENT PLAN
SECTION 10.
.
RIGHTS AND DUTIES OF PLAN ADMINISTRATOR
10.1. PLAN ADMINISTRATOR. The administration of the Plan shall be in the
, Plan Administrator who shall be deemed the named fiduciary.
10.2. GENERAL DUTIES OF PLAN ADMINISTRATOR. The Plan
Administrator shall discharge its duties solely in the interest of the Participants and beneficiaries
and for the exclusive purpose of providing benefits to Participants and their beneficiaries and
defraying reasonable expenses of administering the Plan.
10.3. INSPECTION OF RECORDS. The Plan Administrator shall keep on file
a copy of this agreement, including any subsequent amendments, for examination by the
Participants at reasonable times. Any Participant shall have the right, either in person or by
agent or attorney, to inspect the books and records relating to the Plan excluding records
pertaining to the individual account or interest of other Participants at any reasonable time and
place. A Participant shall be entitled upon request to receive within a reasonable time from the
Plan Administrator a statement setting forth the amount of the Participant's Accrued Benefit to
date, if any, and a statement of the amounts credited or allocable to such Participant's individual
accounts .
.
10.4. INTERPRETATION. The Plan Administrator shall have the power to
construe and interpret this Plan and to determine al( questions that shall arise under this Plan.
The decision of-the Plan Administrator made in good faith shall be final and binding upon all
parties including Participants and their~beneficiaries. However the Plan Administrator shall, at
all times, act in a uniform and nondiscriminatory manner, and shall from time to time set down
uniform rules of interpretation and administration, which rules may be modified from time to
time in light of existing circumstances and experience.
10.S. NOTICE. In any matter in which the Plan Administrator may be required
to take any action under the Plan, the Plan Administrator shall not be obligated to take such
action unless and until reasonable notice shall have been received by the Plan Administrator of
the necessity to so act.
10.6. LEGAL COUNSEL. The Plan Administrator may consult with legal
counsel (who mayor may not be counsel for the Employer) concerning any question which
arises under the llan, and the opinion of such counsel shall be a full and complete protection
in respect to any action taken or omitted by the Plan Administrator.
10.7. EXPENSES. The Plan Administrator shall pay for or direct payment for
administrative expenses, including legal, actuarial, accounting, and other administrative
ex~nses, from funds accumulated in the Plan.
..
Page 23--REST A TED RETIREMENT PLAN
.
.
.
a. The Plan Administrator is authorized to cause payment from the Trust
Fund of all the Trustee's expenses, taxes, and charges (including fees of its accountants,
actuaries, attorneys, other specialists, and agents) incurred in connection with the administration,
management, investment, protection, and distribution of the Trust Fund.
b. The Plan Administrator is authorized to cause payment from the Trust
Fund and the Policy of all expenses of the Plan Administrator. Such expenses shall include any
expenses incident to the functioning of the Plan Administrator, including but not limited to fees
of accountants, actuaries, attorneys, other specialists, and agents, and other costs of
administering the Plan.
c. To the extent that the Plan Administrator does not cause payment to be
made, the Employer may directly pay all the Trustee's expenses, taxes, and charges and all
expenses of the Plan Administrator.
-..
Page 24--REST A TED RETIREMENT PLAN
SECTION 11.
.
Al\lENDMENT; TERMINATION; MERGER; EXCLUSIVE BENEFIT
,
11.1. AMENDMENT. The Employer expects to continue this Plan indefinitely,
but nevertheless reserves the right at any time or times to amend this Plan to any extent and in
any manner that the Employer may deem advisable by delivery to the Plan Administrator of a
certified copy of a resolution of the City Council of the Employer making such amendment.
Upon delivery of such certified copy to the Plan Administrator, this Plan shall be deemed to
have been amended in the manner set forth herein,. and all Participants hereby, provided that no
amendment: (a) shall have the effect of vesting in the Employer any interest in any property held
subject to the terms of this Plan; (b) shall cause or permit any property held subject to this Plan
to be diverted to purposes other than the exclusive benefit of the present or future Participants
and their beneficiaries; or (c) shall increase the duties or liabilities of the Plan Administrator
without the written consent of the Plan Administrator first being obtained.
11.2. AMENDMENT OF VESTING SCHEDULE. No Plan amendment may
be made changing the vesting sch~dule under the Plan if the nonforfeitable percentage of the
Accrued Benefit (determined as of the later of the date such amendment is adopted or the date
such amendment becomes effective) of any Participant is less than such nonforfeitable percentage
computed under the Plan without regard to such amendment.
.
11.3. DISCONTINUANCE OF CONTRIBUTIONS AND TERMINATION OF
PLAN. The Employer has established the Plan with the bona fide intention and expectation that
it will be able tOffiake contributions indefinitely, but the Employer is not and shall not be under
any obligation or liability whatsoever to continue the contributions or to maintain the Plan for
any given length of time, and may, in its sole and absolute discretion, discontinue such
contributions or terminate the Plan at any time without any liability whatsoever for such
discontinuance or termination; provided, however, that it is the intent of the Employer to
maintain this Plan as a plan which is equal to or better than benefits provided under the Oregon
Public Employees Retirement System.
11.4. NOTICE OF TERMINATION. The Plan hereby created shall terminate
upon delivery )to the Plan Administrator of a notice of termination executed by the Employer
specifying the date as of which the Plan shall terminate.
U.S. VESTING ON TERMINATION. In the event of a termination or partial
termination of t~e Plan, all affected Participants shall have a fully vested and nonforfeitable
interest in their Accrued Benefit and benefits provided under Section 6.
11.6. MERGER. In case of any merger or consolidation with, or transfer of
assets or liabilities to, any other Plan, each Participant in this Plan will (if this Plan had then
terminated) receive a benefit immediately after the merger, consolidation, or transfer which is
.
Page 2S--REST A TED RETIREMENT PLAN
.
.
.
equal to or greater than the benefit that the Participant would have been entitled to receive
immediately before the merger, consolidation, or transfer (if the Plan had been terminated).
11. 7. EXCLUSIVE BENEFIT. Except as otherwise provided in this Plan, in
no event shall the principal or income of this Plan be paid to or revert to the Employer or be
used for any purpose whatsoever other than for the exclusive benefit of the Participants or their
beneficiaries.
11.8. REVERSION ON TERMINATION. In the event of a termination of this
Plan any amounts remaining after satisfaction of all liabilities to the Participants and beneficiaries
shall revert to the Employ~r.
Page 26--REST A TED RETIREMENT PLAN
.
.
.
SECTION 12.
CLAIMS PROCEDURE
12.1. CLAIMS. Upon the request of a Participant or beneficiary, or by action
of the Plan Administrator, the Plan Administrator shall provide claim forms to any Participant
or his beneficiary who becomes entitled to benefits under the Plan because of retirement,
Disability, death or Severance of Employment for any other reason. Such claim form shall be
completed and submitted to the Plan Administrator no later than thirty (30) days after it is
received by said Participant or beneficiary. Upon receipt of said claim form, the Plan
Administrator shall review the appropriateness of the claim and if the Plan Administrator
determines that the claim should not be allowed, the Plan Administrator shall respond in writing
within thirty (30) days of the receipt of said claim to said Participant or beneficiary. Such
response shall include the specific reason or reasons for the denial, specific references to
pertinent Plan provisions on which the denial is based, a description of whatever additional
material or information, ifany, need be supplied by the Participant or beneficiary to perfect the
claim, and an 'explanation of the Plan's review procedure. If notice of the denial of a claim is
not furnished within thirty (30) days of receipt by the Plan Administrator, the claim shall be
deemed denied. .
12.2. REVIEW. Within sixty (60) days after receipt of notice of denial of the
claim or when the claim is deemed to have been denied, the Participant or beneficiary (or
representative) may respond to the denial by requesting, in writing, a review of the decision and
a review of pertinent documents. If the Participant or beneficiary (or representative) responds
and seeks a review of the decision to deny benefits, issues and cornrnents must be submitted in
writing to the Plan Administrator. Such issues and cornrnents shall specify the reasons that the
decision of the Plan Administrator is claimed to be erroneous. The Plan Administrator shall
review the contentions regarding the denial of the claim and shall, within sixty (60) days from
the Plan Administrator's receipt of the request for review, respond to said request. In
modification of the foregoing, if the Plan Administrator, in the Plan Administrator's sole
discretion, determines that special circumstances warrant the holding of a hearing, it shall
promptly be held and a decision shall be rendered within one hundred twenty (120) days from
the date the Plan received the request for review. Any decision on review shall be in writing
and shall state the specific reasons for the decision, and shall make specific references to the
Plan provisions on which the decision is based.
Page 27--RESTATED RETIREMENT PLAN
SECTION 13.
.
MISCELLANEOUS
13.1. NOT A CONTRACT. The adoption and maintenance of the Plan shall not
be deemed to be a contract between the Employer and any Employee. Nothing in the ~lan shall
be deemed to give any Employee the right to be retained in the employ of the Employer or to
interfere with the right of the Employer to discharge any Employee at any time. Nothing in the
Plan shall be deemed to give the Employer the right to require any Employee to remain in its
employ, nor shall it interfere with the Employee's right to terminate the Employee's employment
at any time.
13.2. GOVERNING LAW. This Plan shall in all respects be construed
according to the laws of the State of Oregon, except as modified in Section 13.6.
13.3. BENEFITS PAYABLE SOLELY FROM THE PLAN. All benefits
payable under the Plan shall be paid or provided for solely from the Plan assets and the
Employer assumes no liability or responsibility therefor.
.
13.4. . ANTI-ALIENATION. No Participant shall have power to alienate,
transfer, assign, anticipate, mortgage or otherwise encumber either the Participant's interest in
this Plan or in any other property held under the Trust or the Policy for the Participant's benefit
under the terms of this Plan. No interest of a Participant in the Plan or in any other property
held under the Trust or the Policy for the Participant" s benefit shall be subject to garnishment,
attachment or oilier seizure or sequestration for the payment of debts, judgments, alimony or
separate maintenance owed by such Participant or be transferred by operation of law in the event
of bankruptcy, insolvency or otherwise except pursuant to a qualified domestic relations order
described in IRC Section 414(p).
B.S. DISABILITY. If any person to whom a benefit is payable under the Plan
is an infant, or if the Plan Administrator determines that any person to whom such benefit is
payable is incompetent by reason of physical or mental disability, the Plan Administrator shall
have the power to cause the payments becoming due to such person to be made to another for
his benefit without responsibility for the Plan Administrator to see to the application of such
payments. Any payment made pursuant to such powers shall as to such payment operate as a
complete discharge of the Plan Administrator.
13.6. QUALIFIED PLAN. The terms of this Plan shall be interpreted and
administered in i manner consistent with the requirements of the IRC in order that the Plan may
qualify as a qualified plan.
13.7. GENDER AND NUMBER. \Vhenever any words are used in the Plan in
the Illasculine, feminine, or neuter gender, they shall be construed as though they were also used
in another gender in all cases where they would so apply, and whenever any words are used in
.
Page 28--REST A TED RETIREMENT PLAN
.
.
.
the Plan in the singular or plural form, they shall be construed as though they were also used
in the other form in all cases where they would so apply.
13.8. NOTICES. Unless otherwise specifically provided in the Plan, any notices
required or permitted to be given under the terms of this Plan, or by law, shall be in writing and
may be given by personal delivery or certified mail, return receipt requested, directed to the
parties at the addresses shown on the Plan records, or such other address as a party may
designate in writing prior to the time of giving such notice. Unless otherwise provided in the
Plan, any notice given shall be effective when actually received or if' given by certified mail,
then seventy-two (72) hours after the deposit of such notice in the United States mail with
postage prepaid.
13.9. TABLE OF CONTENTS AND CAPTIONS. The Table of Contents and
the captions are inserted only for convenience and have no substantive effect.
13.10. COUNTERPARTS. This Plan may be executed in several counterparts,
and each shall be an original without reference to the others.
DATED January 20, 1998.,
EMPLOYER:
CITY OF SPRINGFIELD, OREGON
.'
1 )\. i " - \
By.i V.L \."-- r".
'\' I
City Manager
t. -:. ...
,-, \. ' l. oi.. :..
,.
/ .._'\
I .
.,........-. ,.
Page 29--REST A TED RETIREMENT PLAN