HomeMy WebLinkAboutResolution 98-65 12/07/1998
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SPRINGFIELD
NO. 98 - 6~
A RESOLUTION OF THE CITY OF SPRINGFIELD AMENDING AND RESTATING THE
CITY OF SPRINGFIELD DEFERRED COMPENSATION PLAN AND DIRECTING
EXECUTION AND IMPLEMENTATION OF THE AMENDED AND RESTATED PLAN.
WHEREAS, by Resolution 81-98 the City of Springfield adopted the City of
Springfield Deferred Compensation Plan (the Plan); and
WHEREAS, by Resolution 84-42 the City of Springfield amended the Plan and adopted
the Declaration of Trust of ICMA Retirement Trust and a separate Trust Agreement with The
ICMA Retirement Corporation; and
WHEREAS, the Declaration of Trust of ICMA Retirement Trust has smce been
amended as provided in said Declaration; and
WHEREAS, the separate Trust Agreement with The ICMA Retirement Corporation has
since been replaced by an Administrative Services Agreement with The ICMA Retirement
Corporation; and
WHEREAS, the assets held by the City to fund its obligation under the Plan are held in
the ICMA Retirement Trust and in Group Annuity Contract No. B 001985 issued by Aetna
Life Insurance and Annuity Company, beneficial ownership of both of which is in the City;
and
WHEREAS, amendments made in 1996 to the Internal Revenue Code require all assets
and income of the Plan to be held in trust (or in one or more trust-equivalent annuity contracts
or custodial accounts) by January 1, 1999, for the exclusive benefit of participants and
beneficiaries under the Plan; and
WHEREAS, other amendments made since 1984 to the Internal Revenue Code require
other changes to be made to the Plan;
WHEREAS, adoption of the City of Springfield Deferred Compensation Plan and Trust
attached hereto would cause all assets and income of the Plan to be held in trust (or in one or
more trust-equivalent annuity contracts or custodial accounts) on December 31, 1998, for the
exclusive benefit of participants and beneficiaries under the Plan and would bring the Plan into
compliance with other amendments made since 1984 to the Internal Revenue Code;
NOW THEREFORE BE IT RESOLVED by the Common Council of the City of Springfield as
follows:
Section 1. The Plan is amended and restated in the form of the City of Springfield
Deferred Compensation Plan and Trust attached hereto.
ATTACHMENT B
RESOLUTION NO. 98- 65
Page I
. Section 2. The City Manager, on behalf of the City of Springfield, is directed to
execute the City of Springfield Deferred Compensation Plan and Trust in the form attached
hereto and is authorized to take all other action necessary or appropriate to implement this
resolution.
ADOPTED by the Common Council of the City of Springfield this 7th day of December,
1998, by a vote of 0 in favor and tf; opposed.
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Mayor
ATTEST:
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'tlt Recor~er
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RESOLUTION NO. 98- 65
Page 2
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CITY OF SPRINGFIELD
DEFERRED COMPENSATION PLAN AND TRUST
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Restated December 7, 1998
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Resolution 98-65
Page 3
ATTACHMENT C
DEFERRED COMPENSATION PLAN & TRUST
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ARTICLE I. PURPOSE
The Employer hereby establishes the Employer's De-
ferred Compensation Plan and Trust, hereafter referred
to as the "Plan." The Plan consists of the provisions set
forth in this document.
The primary Pllrpose of this Plan is to provide retirement
income and ,other deferred benefits to the Employees of the
Employer and the Employees' Beneficiaries in accordance
\\'ith the provisions of Section 457 of the Internal Rev-
enue Code of 1986, as amended (the "Code").
This Plan shall be an agreement solely between the
Employer and participating Employees. The Plan and
Trust forming a part hereof are established and shall be
maintained for the exclusive benefit of eligible Employ-
ees and their Beneficiaries. No part of the corpus or
income of the Trust shall revert to the Employer or be
used for or diverted to purposed other than the exclu-
sive benefit of Participants and their Beneficiaries.
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ARTICLE II. DEFINITIONS
2.01 Account: The bookkeeping account maintained for
each Participant reflecting the cumulative amount of the
Participant's Deferred Compensation, including any
income, gains, losses, or increases or decreases in market
value attributable to the Employer's investment of the
Participant's Deferred Compensation, and further
reflecting any distributions to the Participant or the
Participant's Beneficiary and any fees or expenses
charged against such Participant's Deferred Compensa-
tion.
2.02 Accounting Date: Each business day that the New
York Stock Exchange is open for trading, as provided in
Section 6.06 for valuing the Trust's assets.
2.03 Administrator: The person.or persons named to
carry out certain nondiscretionary administrative func-
tions under the Plan, as hereinafter described. The
Employer m:l~/ remove any person as Administrator
upon 60 days' :ldvance notice in writing to such person,
in which case the Employer shalln:lme another person
.r persons to act :lS A.dministr:ltor. The Administrator
1:1Y resign upon 60 d:lYs' advance notice in writing to
the Employer, in which C:lse the Employer sh:lllname
:lnother person or persons to act as Administrator.
2.04 Beneficiary: The person or persons designated by
the Participant in his Joinder Agreement who shall
receive any benefits payable hereunder in the event of
the Participant's death. In the event that the Participant
n:lmes two or more Beneficiaries, each "Beneficiary shall
be entitled to equal shares of the benefits payable at the
Participant's death, unless otherwise provided in the
Participant's Joinder J\greement. If no beneficiary is
designated in the Joinder Agreement, if the Designated
Beneficiary predeceases the Participant, or if the desig-
nated Beneficiary does not survive the Participant for a
period of fifteen (15) days, then the estate of the Par-
ticipant shall be the Beneficiary.
2.05 Deferred Compensation: The amount of Normal
Compensation otherwise payable to the Participant
which the Participant and the Employer mutually agree
to defer hereunder, any amount credited to a
Participant's Account by reason of a transfer under
section 6.09, or any other amount which the Employer
agrees to credit to a Participant's Account.
2.06 Employee: Any individual who provides services
for the Employer, whether as an employee of the
Employer or as an independent contractor, and who has
been designated by the Employer as eligible to partici-
pate in the Plan.
2.07 Includible Compensation: The amount of an
Employee's compensation from the Employer for a
taxable year that is attributable to services performed for
the Employer and that is includible in the Employee's
gross income for the taxable year for federal income tax
purposes; such term does not include any amount
excludable from gross income under this Plan or any
other plan described in Section 457(b) of the Code or
any other amount excludable from gross income for
federal income tax purposes. Includible Compensation
shall be determined without regard to any community
property laws.
2.08 Joinder Agreement: An agreement entered into
between an Employee and the Employer, including any
amendments or modifications thereof. Such agreement
shall fix the ;lIllount of Deferred Compensation, specify
:l preference among the investment :llternatives desig-
nated by the Employer, designate the Employee's
Beneficiary or Beneficiaries, and incorpor:lte the terms,
conditions, :tnd provisions of the Plan by reference.
Page I-DEFERRED COMPENSATION PLAN AND TRUST
Resolution 98-65
Page 4
ATTACHMENT C-2
2.09 Norm:lI CompcnsJtion: The Jmount of cOl1lpeIl5J-
tion which would be pJYJble to J P:ltticipJllt by the
Employer for J tJxJble yeJr if no Joinder ;\greement
were in effect to defer compensJtion under this P!Jn.
.2.10 NOrlnJI Retirement ;\ge: Age'70-112, unless the
PJrticipJnt hJS elected In :dternJte NormJI Retirement
.~ge by written instrument delivered to the AdministrJ-
tor prior to SepJrJtion from Sen'ice. ,~ PJrticipJnt's
Normal Retirement Age determines the period during
which a ParticipJnt mJY utilize the CJtch-up limitJtion
of Section 5.02 hereunder. Once a Participant has to
any extent utilized the CJtch-up limitJtion of Section
5.02, his Norn1J1 Retirement Age mJY not be chJnged.
A ParticipJnt's JlternJte NormJI Retirement l\ge mJY
not be earlier thJn the eJrliest dJte thJt the PJrticipJnt
will become eligible to retire Jnd receive unreduced
retirement benefits under the Employer's basic retire-
ment plan covering the PJrticipJI1t Jnd mJY not be !Jter
than the dJte the PJrticipJnt will attain age 70-1/2. Ifa
P:l!ticipJnt continues employment after attaining age
70-1/2, not having previously elected alternate Normal
Retirement Age, the Particip:lI1t's JlternJte Normal
Retirement .~ge shall not be !Jter than the m:lI1datory
retirement age, if Jny, estJblished by the Employer, or
the age at which the Participant actually separJtes from
.service if the Employer hJS no mJndatory retirement
age. If the PJrticipJnt will not become eligible to
receive benefits under J bJsic retirement pbn main-
tained by the Employer, the ParticipJnt's alternJte
Normal Retirement Age l11JY not be eJrlier thJn Jge 55
and may not be bter than age 70-112.
2.11 PJrticipJnt: Any Employee who hJS joined the
Pbn pursu:mt to the requirements of .-\rticle IV.
2.12 Plan YeJr: The CJlendar yen.
2.13 Retirement: The first date upon which both of the
following shJlI h:lve occurred with respect to J p:lrtici-
pant: Separ:ltion from Service Jnd :lttJinment of Jge 65.
2.14 Separ:ltion From Service: SeverJnce of the
Participant's employment with the Employer which
constitutes a "separation from service" within the
meaning of Section 402(d)(4)(A)(iii) of the Code. In
general, a Particip:lnt shall be deemed to have severed
his employment with the Employer for purposes of this
Plan when, in accordance with the estJblished prJctices of
.the Employer, the employment rebtionship is considered
to hJve ~ctUJj]y tcrminJted. In the CJse of J PJrticipJnt
who is JIl indepelldent contrJctor of the Employer,
SepJrJtion from Service shJIl be deemed to hJve oc-
curred when the PJrticipJnt's contrJct under which
services Jre performed hJS completely expired Jnd
terminJted, there is no foreseeJble possibility thJt the
Employer will renew the contrJct or enter into J new
\=ontrJct for the PJrticipJnt's services, J'nd is not :lI1tici-
pJted thJt the PJrticipJnt will become In Employee of
the Employer.
2.15 Trust: The Trust creJted under Article VI of the
Pl:m which shJlI consist of ;J!l compensation deferred
under the Plan, plus :ll1Y income Jnd gains thereon, less
Jny losses, exp~nses Jnd distributions to PJrticipJnts Jnd
Beneficiaries.
ARTICLE III. ADMINISTRATION
3.01 Duties of the Employer: The Employer shall have
the authority to make all discretionary decisions affect-
ing the rights or benefits of Participants which may be
required in the administration of this Plan. The
Employer's decisions shJ]] be afforded the maximum
deference .permitted by applicable law.
3.02 Duties of l\dministrJtor: The .~dministrator, JS
agent for the Employer, shJII perform nondiscretionary
:ldministrative functions in connection with the Plan,
including the mJinten:lI1ce of Particip:l!1ts' ,A,ccounts,
the provision of periodic reports of the status of e:lch
Account, Jnd the disbursement of benefits on behalf
of the Employer in accordance with the provisions of
this PIJn. .
ARTICLE IV. PARTICIPATION IN THE PLAN
4.01 InitiJI P:lrticip:ltion: ,-\n Employee may become a
ParticipJnt by entering into :I Joinder Agreement prior
to the beginning of the calendar month in which the
Joinder Agreement is to become effective to defer
compensation not yet eJrned.
4.02 Amendment of Joinder Agreement: /\ Participant
may :lmend :In executed Joinder .'\greement to change
the amount of compens:ltion not yet earned which is to
be deferred (including the reduction of such future
deferr:lls to zero) or to change his investment preference
(subject to such restrictions as may result from the
nature of terms of :lny investment made by the Em-
ployer). Such amendment shall become effective as of
Page 2-DEFERRED COMPENSATION PLAN AND TRUST
Resolution 98-65
Page 5
ATTACHMENT C-3
the beginning of the c:dendar month commencing after
. the date the amendment is executed. A Participant may
at any time amend his Joinder Agreement to change the
designated Beneficiary, and such amendment shall
become effective immediately.
ARTICLE V. LIMITATIONS ON DEFERRALS
5.01 Normal Limitation: Except as provided in section
5.02, the maximum amount of Deferred Compensation
for any Participant for any taxable year shall not exceed
the lesser of $7,500.00, as adjusted for the cost-of-living
in accordance with Code section 457(e)(15) for taxable
years beginning after December 31, 1996 (the "dollar
limitation"), or 33-1/3 percent of the Participant's
Includible Compensation for the taxable year. This
limitation will ordinarily be equivalent to the lesser of
the dollar limitation in effect for the taxable year or 25
percent of the Participant's Normal Compensation.
5.02 Catch-Up Limitation: For each of the last three (3)
taxable years of a Participant ending before his attain-
ment of Normal Retirement Age, the maximum amount
of Deferred Compensation shall be the lesser of: (1)
.$15,000 or (2) the sum of (i) the Normal Limitation for
the taxable year, and (ii) the Normal Limitation for
each prior taxable year of the Participant commencing
after 1978 less the amount of the Participant's Deferred
Compensation Jor such prior taxable years. A prior
taxable year shall be taken into account under the
preceding sentence only if (i) the Participant was eli-
gible to participate in the Plan for such year (or in any
other eligible deferred compensation plan established
under Section 457 of the Code which is properly taken
into account pursuant to regulations under section 457),
and (ii) compensation (if any) deferred under the Plan
(or such other plan) was subject to the deferral limita-
tions set forth in Section 5.01
5.03 Other Plans: The amount excludable from a
Participant's gross income under this Plan or any other
eligible deferred compens:\tion plan under section 457
of the Code slnll not exceed $7,500.00 (or such greater
amount :J.llowed under Sections 5.01 or 5.02 of the
Pbn), less any :J.mount excluded from gross income
under section 403(b), 402(a)(8), or 402(h)(1)(B) of the
Code, or :ll1Y Jmount with respect to which :J. deduction
. i~ a])ow:J.ble by re:J.son of:\ contribution to an organiz:J.-
tlon described in section 501 (c)( 18) of the Code.
ARTICLE VI. TRUST AND INVESTMENT
OF ACCOUNTS
6.01 Investment of Deferred Compensation: A Trust is
hereby created to hold all the assets of the Plan for the
exclusive benefit of Participants and Beneficiaries,
except that expenses and taxes may be paid from the
Trust as provided in Section 6.03. The trustee shall be
the Employer or such other person which agrees to act
in that capacity hereunder.
6.02 Investment Powers: The trustee or the Plan Ad-
ministrator, acting as agent for the trustee, shall have
the powers listed in this Section with respect to invest-
ment of Trust assets, except to the extent that the
investment of Trust assets is directed by Participants,
pursuant to Section 6.05.
(a) To invest and reinvest the Trust without dis-
tinction between principal and income in any form
of tangible or intangible property, real, personal, or
mixed, and wherever situated, including, but not by
way of limitation, common or preferred stocks,
shares of regulated investment companies and other
mutual funds, bonds,. loans, notes, debentures,
mortgages, certificates of deposit, interest, or par-
ticipation, equipment trust certificates, commercial
paper including but not limited to participation in
pooled commercial paper accounts, contracts with
insurance companies including but not limited to
insurance, individual or group annuity, deposit
administration, and guaranteed interest contracts,
deposits at reasonable rates of interest at banking
institutions including but not limited to savings
accounts and certificates of deposit, and other forms
of securities or investments of any kind, class, or
character whatsoever and representing interests in
any form of enterprise, wherever it may be located,
organized or operated within or without the United
States of America, whether such investments are
income producing or not, without being limited in
:ll1Y respect by stJtute or court rule or decision of
any jurisdiction now or hereafter in force purport-
in" to limit or othenvise affect such investments.
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:\ssets of the Trust may be invested in securities or
new Yentures that involve a higher degree of risk
thJn investments th:J.t hJve demonstrJted their
investment perform:ll1ce over :1Il extended period
of time.
Page 3-DEFERRED COMPENSATION PLAN AND TRUST
Resolution 98-65
Page 6
ATTACHMENT C-4
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(b) To invest Jnd reinvcst :lll or Jny pHt of the
assets of the Trust in :lny common, collective or
commingled trust fund th:lt is m:lintJined by :l bJnk
or other institution 3nd thJt is :lv3ihble to Em-
ployee pl3m described under sections 457 or 401 of
the Code, or 3ny successor provisions thereto, :lI1d
d u ri n g the per i 0 d 0 f t i met h;Jt J n in v est men t
through 3ny such medium sh311 exist, to the extent
ofparticip:ltion of the Phn, the dechr3tion of trust
of such common, collective, or commingled trust
fund shall constitute J pJrt of this Pbn.
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(c) To invest Jnd reinvest Jll or :lIlY pJrt of the
assets of the Trust in 3ny group 3nnuity, deposit
administr3tion or gU:lT3nteed interest contr3ct issued
by an insur3nce comp3ny or other fin3nci:1l institu-
tion on a commingled or collective bJsis with the
3ssets of :In)' other 457 pbn or trust qualified under
section 401 (a) of the Code or :lny other p1:1n de-
scribed in section 401 (:l)(24) of the Code, 3nd such
contract m:lY be held or issued in the nJme of the
Plan Administr:ltor, or such custodi:ln :lS the Pbn
Administrator m:lY :lppoint, :lS :lgent :lnd nominee
for the Employer. During the period th:lt :In invest-
ment through :lllY such contr:lct sh:llJ exist, to the
extent of particip:ltion of the Plan, the terms :lnd
conditions of such contr:lct sh:lll constitute :l P:lTt of
the Pl3n.
(d) To purchJse pHt interests in re3l property or in
mortg:lges on re:ll property, wherever such re:ll
property n13)' be ,situ3ted, 3nd to deleg:lte to :l
property mal1:lger or the holder or holders of:l
m:ljority interest in such re3l property or mortg3ge
on re:ll property the m:lnagemellt 3nd oper:ltion of
any p:lrt interest in such real property or mortgages.
(e) To hold osh :lwaiting investment and to keep
such portion of the Trust in osh or osh b:ll3nces,
without liability for interest, in such :lmounts :lS nny
from time to time be deemed to be re:lson:lble and
necessary to meet obligations under the Pl:lI1 or
otherwise to be III the best interests of the Pbn.
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(f) To ret:lin, m:ll1Jge, oper:tte, :ldminister, divide,
subdivide, p3rtition, mortg:lge, pledge, improve,
alter, demolish, remodel, rep:lir, Jnd develop in :lny
m:lnner 3ny property, or :lny p3rt of or p:lrti:ll
interest in any property, re31 or personal, held in the
Trust, to lease such property for 3ny period of time,
:lnd to gr:lnt options to sell, exchJnge, lease, or
Page 4-DEFERRED COMPENSATION PLAN AND TRUST
otherwise dispose of :lny such property, without
regud to, restrictions :tppliC:tble to fiduci:lTies or
others :lnd without the :tpprov:l1 of :lny court.
(g) To sell for C:tsh or credit, redeem, exchJnge for
other property, convey, tr:l11sfer, or otherwise
dispose of :lny property held in th-e Trust in any
mJllner 3nd :It :tnI' time, by priv:lte contr:tct or :It
public :tuction or otherwise, Jnd no other person
sh:lll be bound to see to the :lppliotion of the
purch:lse mOlleI' or to inguire into the v:llidity,
expediency, or propriety of 3ny such s3le or other
disposition.
(h) To enter into contracts for or to m3ke commit-
ments either :llone or in company with others to
purch:lse or sell at :lny future d3te :lny property
acquired for the Trust.
(i) To vote or to refr:lin from voting any stocks,
bonds, or other securities held in the Trust, to
exercise :lny other right :lppurten:lIH to any securi-
ties or other property held in the Trust, to give
gener:ll or speci:ll proxies or powers of attorney with
or without power of substitution with respect to
such securities and other property, to exercise any
conversion privileges, subscription rights, or other
options or privileges with respect to such securities
:lnd other property :lnd make :IllY p:;yments inciden-
t:ll thereto, :lnd gener:llly to exercise, personally or
by gener:ll or limited power of :lttomey, any of the
powers of an owner with :-espect to stocks, bonds,
securities, or other property held in the Trust ;;t
any time.
(j) To oppose or to consent to and participate in
any organiz:ltion, reorg:mization, consolidation,
merger, combination, readjustme:1t of finances, or
simibr :lrr:lngement with :-espect to any corporation,
company, or associJtion, any of the securities of
which :lre held in the Trust, to do any act with
reference thereto, including the exercise of options,
the m:lking of :lgreements or subscriptions and the
payment of expenses, assessments, or subscriptions
th:lt m:lY be deemed necessary or :ldvisabJe in
connection therewith, and to accept, hold, and
retain :lny securities or other property that may be
so :lcquired.
Resolution 98-65
Page 7
ATTACHMENT C-5
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(k) To deposit any property held in the Trust with
any protective, reorganization, or similar commit-
tee, and to de]egat~ discretionary power thereto and
to pay and agree to pay part of its expenses and
compensation and any assessments levied with
respect to any such property so deposited.
(1) To hold, to authorize the holding of, and to
register any investment to the Trust in the name of
the 'Plan, the Employer, or any nominee or agent of
any of the foregoing, including the Plan Administra-
tor, or in bearer form, to deposit or arrange for the
deposit of secL:rities in a qualified central depository
even though, when so deposited, such securit~es may
be merged and held in bulk in the name of the
nominee of such depository with other securities
deposited therein by any other person, and to
organize corporations or trusts under the laws of any
jurisdiction for the purpose of acquiring or holding
title to any property for the Trust, all with or
without the addition of words or other action to
indicate that property is held in a fiduciary or
representative capaciry but the books and records of
the Plan shall at all times show that all such invest-
ments are part of the Trust.
.
(m) Upon such terms as may be deemed ad\'isable
by the Employer or the Plan Administrator, as the
case may be, for the protection of the interests of
the Plan or for the preservation of the value of an
investment, to exercise and enforce by suit for legal
or equitable remedies or by other action, or to
waive any right or claim on behalf of the Plan or
any default in :my obligation owing to the Plan, to
renew, extend the time for payment of, agree to a
reduction in the rate of interest on, or agree to any
other modification or change in the terms of any
obligation owing to the Pbn, to settle, compromise,
adjust, Or submit to arbitration any claim or right in
favor of or against the Plan, to exercise and enforce
any, and all rights of foreclosure, bid for property in
foreclosure, and t:lke J deed in lieu of foreclosure
with or withotlt paying consideration therefor, to
commence or defend suits or other legal proceedings
whenever :lny interest of the P!3n requires it, and to
represent the Plan ill :lll suits or leg:ll proceedings in
any court of bw or equity or before any body or
tribun:d.
.
(n) To employ suit:lble consultants, depositories,
:lgents, and leg:ll coullsel on behalf of the Plan.
(0) To make, execute, acknowledge, and deliver
any and all deeds, leases, mortgages, conveyances,
contracts, waivers, releases, or other instruments in
writing necessary or proper for the accomplishment
of any of the foregoing powers.
(p) To open and maintain any bank account or
accounts in the name of the Plan, the Employer, or
any nominee or agent of the foregoing, including
the Plan Administrator, in any bank or banks.
(q) To do any and all other acts that may be
deemed necessary to carry out any of the powers set
forth herein.
6.03 Taxes and Expenses: All taxes of any and all kinds
whatsoever that may be levied or assessed under existing
or future laws upon, or in respect to the Trust, or the
income thereof, and all commissions or acquisitions or
dispositions of securities and similar expenses of invest-
ment and reinvestment of the Trust, shall be paid from
the Trust. Such reasonable compensation of the Plan
Administrator, as may be agreed upon from time to time
by the Employer and the Plan Administrator, and
reimbursement for reasonable expenses incurred by the
Plan Administrator in performance of its duties hereun-
der (including but not limited to fees for legal, account-
ing, investment and custodial services) shall also be paid
from the Trust.
6.04 Payment of Benefits: The payment of benefits
from the Trust in accordance with the terms of the Plan
may be made by the Plan Administrator, or by any
custodian or other person so authorized by the Em-
ployer to make such disbursement. The Plan Adminis-
trator, custodian or other person shall not be liable with
respect to any distribution of Trust assets made at the
direction of the Employer.
6.05 Investment Funds: In accordance with uniform and
nondiscriminatory rules established by the Employer and
the Plan Administrator, the Participant may direct his/
her Accounts to be invested in one (1) or more invest-
ment funds available under the Plan; provided, how-
ever, that the P:uticip:lnt's investment directions shall
not violate :lny investment restrictions established by the
Employer. Neither the Employer, the Administrator,
nor :lny other person shall be liable for any losses
incurred by virtue of following sllch directions or with
any rnsonable :ldministr:ltive deby in implementing
sllch directions.
Page 5-DEFERRED COMPENSATION PLAN AND TRUST
Resolution 98-65
Pa*TT~CHMENT C-6
6.06 V:du:ltion of .-\ccounts: As of C:lch j\ccounting
D:lte, the PI:lI1 :lssets held in eJch illvestmcnt fund
offered sh:lll be v:dued :It fJir mJrket v:due Jnd the
. investment income Jnd gJins or losses for eJch fund
shall be determined. Such investment income Jnd gJillS
or losses shJIl be J]]acJted praportionJtely Jmong Jll
Account b:J!ances an a fund-by-fund bJsis. The alloCJ-
tian sh:1I1 be in the prapartion thJt each such Account
babnceJs of the immediately preceding Accounting
D:lte beJrs to the totJl of aJJ such ,A,.ccount bJbnces JS of
thra j\ccounting D:lte. Far purposes of this Article, all
Accaunt bahnces include the J\ccaunt bJhnces af Jll
Prmicipants and BeneficiJries.
6.07 PJrticipant LaJn Accounts: PJrticipant Laan
Accounts shall be invested in accard:lnce with Section
8.03 af the Phn. Such Accounts shall not share in In)'
investment income and gains ar losses of the investment
funds described in Sections 6.05 :md 6.06.
6.08 Crediting of .A.ccaunts: The P:lrticipant's Account
sh:l!l reflect the amaunt :md value af the investments or
other property obtained by the Employer through the
investment of the P:.nicipJnt's Deferred Compensation
pursurmt to Sectians 6.05 Jnd 6.06. It is Jnticip:lted that
the Employer's in\'estments with respect to. a P:lrticip:lnt
....ill confarm to the investment preference specified ill
he Particip:mt's Joinder Agreement, but nothing herein
shall be construed to. require the Emplayer to. make any
particular investmen: af a Particip:lnt's Deferred Com-
pensatian. E:lch PJrticip:lnt sh:lll receive periodic
reparts, :nat Jess frequently th:ln annu::J]Jy, shawing the
then current v:llue of his/her .A.ccounL
6.09 Tr:msfers:
.
(a) Incoming Tr::Jnsfers: A transfer may be Jccepted
from an eligible deferred campens:ltian phn main-
tained by an ather emplayer and credited to. a
Participant's Account under the Pl:m if (1) the
Participant has se;ar::Jted fram service with thJt
emplayer and become an Emplayee af the Em-
player, and (ii) the other employer's plan pravides
that such tr:lnsfer '.\'ilJ be made. The Emplayer m:l)'
require such dacwn1entatian from the predecessor
plan as it deems necessary to. effectuate the transfer,
to. canfirm that such plan is an eligible deferred
campensatian pl;;n within the meaning af Section
457 of the Cade, ;,nd to. assure that transfers are
pravided far under such plan. The Emplayer mtly
refuse to accept a transfer in the farm af assets ather
thJll osh, unless the Employer Jnd the AdministrJ-
far :Jgree to. hold such other :Jssets ullder the Plan.
Any such tr:JJlSferred :lJl1ount shall be treated as a
ddenJI subject to the lilllit:ltions of Article V,
except thJt, far purposes af :lpplying the limit:ltiolls
of Sections 5.01 Jnd 5.02, :In JmOUIH deferred
during :lny tJx:lble ye:lr under tile pbn from which
the trJnsfer is Jccepted sh:l]] be treated :IS if it has
been deferred under this Pbn during such fJxable
yeJr Jnd compens:ltion p:lid by the trJnsferar em-
ployer sh:l]J be treated :IS if it h:ld been p:lid by the
Employer.
(b) Outgoing Tr:lnsfers: An :lmount may be trans-
ferred to :111 eligible deferred compensation plan
maintained by :lnother employer, and charged to a
P:lrticipant's Accaunt under this Plan, if (1) the
Parricipant has separated from service with the
Employer and become an employee of the other
emplayer, (ii) the ather employer's plan provides
that such tr:lnsfer will be accepted, tlnd (iii) the
P:lrticipant and the emplayers have signed such
agreements as are necessary to assure that the
Emplayer's liability to. P:lY benefits to the Partici-
pant has been discharged and assumed by the other
emplayer. The Employer may regui:-e such docu-
mentation from the other p!:;n as it deems necessary
to effectu::Jte the trtlnsfer, to confi:-;n that such plan
is an eligible deferred compens:ltion phn within the
me:lningof section 457 of the Code, :md to assure
th:lt transfers are pravided for under such plan. Such
transfers sh:lll be ll1:1de anly under such circum-
stances :IS :Ire permitted under section 457 af the
Cade and the regulations thereunder.
6.10 Emplayer Liability: In no event shall the
Emplayer's ljability to. pay benefits to a Participant
under this Plan exceed the value of the amounts cred-
ited to. the Participant's Account; neither the Employer
nar the Administr:ltor sh:l]] be liable far lasses arising
from depreci:ltion or shrinbge in the value of tlny
invcSjments acquired under this Pbn.
Page 6-DEFERRED COMPENSATION PLAN AND TRUST
Resolution 98-05
ATTACHMENT C-7
Page 9
.
ARTICLE VII. BENEFITS
7.01 Retirement Benefits :lnd Election on SeparJtion
from Service: Except as otherwise provided in this
Article VII, the distribution of a Participant's Account
shall commence as of April 1 of the calendar year after
the Plan Year of the Participant's Retirement, and the
distribut"ion of such Retirement benefits shall be made
in accordance with one of the payment options de-
scribed in Section 7.02. Notwithstanding the foregoing,
but subject to the following paragraph of this Section
7.01, the Participant may irrevocably elect within 60
days following Separation from Service to have the
distribution of benefits commence on a fixed determin-
able date other than that described in the preceding
sentence which is at least 61 days after Separation from
Service, but not later than April 1 of the year following
the year of the Participant's Retirement or attainment
of age 70-112, whichever is later. Notwithstanding the
foregoing provisions of this Section 7.01, no election to
defer the commencement of benefits after a separation
from service shall operate to defer the distribution of
ar;y amount in the Participant's Loan Account in the
.vent of a _default of the Participant's loan.
Effecti ve on or after J an uary 1, 1997, the Participant
may elect to defer the commencement of distribution of
benefits to a fixed determinable date later than the date
described above, but not later than April 1 of the year
following the year of the Participant's retirement or
attainment of age 70-1/2, whichever is later, provided
(a) such election is made after the 61 st day following
Separation from Service and before commencement of
distributions and (b) the Participant may make only one
(1) such election. Notwithstanding the foregoing, the
Administrator, in order to ensure the orderly adminis-
tration of this provision, may establish a deadline after
\vhich such election to defer the commencement of
distribution of benetits shall not be allowed.
7.02 Payment Options: .A.s provided in Sections 7.01,
7.04 and 7.05, a Participant or Beneficiary may elect to
have value of the Participant's Account distributed in
accordance with one of the following payment options,
provided that such option is consistent with the limita-
tions set forth in Section 7.03.
(b) One lump-sum payment;
(c) Approximately equal monthly, quarterly, semi-
annual or :ll1nual payments, calcula-ted to continue
for a period certain chosen by the Participant.
(d) Annual Payments equal to the minimum distri-
butions required under Section 401 (a)(9) of the
Code over the life expectancy of the Participant or
over the life expectancies of the Participant and his
Beneficbry.
(e) Payments equal to payments made by the issuer
of a retirement annuity policy acquired by the
Employer.
(f) A split distribution under which payments under
options (a), (b), (c) or (e) commence or are made at
the same time, as elected by the Participant under
Section 7.01, provided that all payments commence
(or are made) by the latest benefit commencement
date under Section 7.01 and that once a payment is
made subsequent payments wiII be made in substan-
tially nonincreasing amounts.
(g) Any payment option elected by the Participant
and agreed to by the Employer and Administrator,
provided that such option must provide for substan-
tially non increasing payments for any period after
the benefit commencement date under Section 7.01.
A Participant's or Beneficiary's selection of a payment
option made after December 31, 1995, under Subsec-
tions (a), (c), or (g) above may include the selection of
an automatic annual cost-of-living increase. Such
increase will be based on the rise in the Consumer Price
Index for All Urban Consumers (CPI-U) from the third
quarter of the last year in which a cost-of-living in-
crease was provided to the third quarter of the current
year. Any increase will be made in periodic payment
checks beginning the following January. The first cost-
of-living increase will be based on the rise in the CPI-U
from the third quarter of 1995 to the third quarter of
1996, and will be applied to amounts paid beginning
January 1997.
/\ Participant's or BeneficiJrY's election of a payment
(:1) Equal monthly, quarterly, semi-:ll1nual or :1nnu:ll option must be made at least 30 days before the pay-
payments in an :1l11ount chosen by the Participant, ment of benefits is to commence. If a Participant or
continuing until his/her Account is exhausted; Beneficiary fails to make a timely election of a payment
. option, benefits shall be paid monthly under option (c)
Page 7-DEFERRED COMPENSATION PLAN AND TRUST Resolution 98-65
PaiTTA8HMENT C-8
.
.
~bove for ~ period of tl\.c YL'~rs or such shorter pl'rJod of
time necess~ry to ensure th~t the :imount of .lnv iJlSt~]J-
ment is not lcss th~n S J .200 pCI' YCJr, without thc
inclusion of J cost-of-li\'ing incrc~se.
.
7.03 Ljmit~tion on Options: No p~ymcnt option I11~Y be
selected by ~ P~rticipJnt under subsections 7.02(J) or (c)
unless the ~mount of ~ny instJllment is not less th~n
$1,200 per yeJr. No p:lyment option I11:l)' be selected
by a Particip:lIlt or Benetlci:lry under Sections 7.02,
7.04, or 7.05 unless it sJtisfies the requirements of
Sections 401(a)(9) and 457(d)(2) of the Code, including
that payments commencing before the death of the
Participant shall s~tisfy the incidental death benefits
requirement under section 457(d)(2)(B)(i)(l). A cost-of-
Jiving increase included as part of a payment option
selected under Section 7.02 shall not be considered to
fai] to satisfy the requirement under section 457(d)(2)(b)
that any distribution made over a period of more than 1
year can only be made in substantially nonincreasing
amoui1ts. Unless otherwise elected by the Particip:ll1t
(or spouse, in the case of distributions described in
Section 7.05 below) by the time distributions are
required to begin, life expectJncies shall be recalculated
annually. Such election shall be irrevocable as to the
Participant (or spouse) :lI1d shall apply to all subsequent
years. The life expectancy of a nonspouse Beneficiary
may not be recalculated.
7.04 Post-retirement De3th Benefits:
.
(a) Should the PJrticip3nt die 3fter he/she h3s begun
to receive benefits under 3 payment option, the
rem3ining pJyr;1ents, if any, under the p3yment
option sh3ll be paY3b]e to the P3rticipJnt's Benefi-
ciJry within the 30-d:l)' period commencing with
the 61st dJY 3fter the P3rticip3nt's de3th, unless the
Beneficiary elects payment under a different pay-
ment option th3t is Jvailab]e under Section 7.02
within 60 d3Ys of the P3rticipant's deJth. Any
different p3yment option elected by 3 Benefici3ry
under this section must provide for payments 3t 3
rJte that is 3t least 3S rJpid under the p3yment
option that was applicable to the Particip3nt. In no
event sh3]] the Emp]oyer or Administrator be liJb]e
to the Benefici3ry for the amount of any payment
made in the 113me of the PJrticipant before
the Administr3tor receives proof of de3th of the -
ParticipJnt.
(b) If (he desi~ll~ted BcncliciHY docs not continue
to Jivc for the reI11.lining period of p~ynlents under
(he p~yment option. thcn the commuted V.1JUL' of
~ny rcm~jning p~YI11ents under the p~ymel1t option
sh~11 be p~id in ~ lump sum to the est.lte of the
Benetlci~ry. ]n the e\'C!1t th~t the P~rticip~nt's est~tc
is the Bene1ici~ry, the commuted nJuc of :ll1Y
remJining p:l'ymel1ts under the p3yment option sh~]J
be p~id to the est~te in :1 Jump sum.
7.05 Pre-retirement De~th Benefits:
(:1) Should the P3rticipJnt die before he hJS begun
to receive the benefits provided by Section 7.01, the
v3]ue of the P3rticip3nt's Account sh31l be paY3b]e
to the Benefici3ry commencing within the 30-d3Y
period commencing on the 91 st day after the
Particip3nt's death, unless the Beneficiary elects 3
different fixed or determinable benefit commence-
ment date within 90 days of the P3rticip3nt's death.
Such benefit commencement date shall be not later
than the later of (I) December 31 of the year fo]-
lowing the ye3r of the P3rticipant's death, or (ii) if
the Benefici3ry is the Particip3nt's spouse, Decem-
ber 31 of the year in which the P3rticip3nt would
h3\'e 3tt3ined 3ge 70-1/2.
(b) Unless a Beneficiary elects a different pa)'ment
option prior to the benefit commencement date,
de3th benefits under this Section sh~]J be p3id in
approximately equal annual installments over five
years, or over such shorter period 3S m3Y be neces-
sary to assure that the 3mount of any annual install-
ment is not Jess th3n $3,500. A Beneficiary shall be
tre:lted as if he/she were a Participant for purposes
of determining the payment options availab]e under
Section 7.02, provided, however, that the payment
option chosen by the Beneficiary must provide for
payments to the Beneficiary over a period no longer
th:lI1 the life expectancy of the Benefici3rY, and
provided that such period may not exceed (15) years
if the Benefici3ry is not the Particip3nt's spouse.
(c) In the event that the Beneficiary dies before the
p3yment of death benefits has commenced or been
completed, the rem3ining v~]ue of the P3rticip3nt's
Account shall be p3id to the estate of the Benefi-
ciny in 3 Jump sum. In the event that the
P:uticip:lJ1t's est3te is the Benefici3ry, payment shall
be m3de to the estate in a Jump sum.
, Resolution 98-65
Page 8-DEFERRED COMPENSATION PLAN AND TRUST Page 11
ATTACHMENT C-9
.7.06 Unforeseeable Emergencies:
(a) In the event an unforeseeable emergency occurs,
a Participant may apply to the Employer to receive
that part of the value of his/her Account that is
reasonably needed to satisfy the emergency need. If
such an appliotion is :lpproved by the Employer.
the Participant shall be paid only such :lmount as the
Employer deems necessary to meet the emergency
need, but payment shall not be made to the extent
that the financial hardship may be relieved through
cessation of deferral under the Plan, insurance or
other reimbursement, or liquidation of other assets
to the extent such liquidation would not itself cause
severe financial hardship.
.
(b) An unforeseeable emergency shall be deemed to
involve only circumstances of severe financial
hardship to the Participant resulting from a sudden
unexpected illness, accident, or disability of the
Participant or of a dependent ,(as defined in section
152(a) of the Code) of the Participant, loss of the
Participant's property due to c:lsu:J!ty, or other
similar and extraordinJrY unforeseeable circum-
stances arising as a result of events beyond the
control of the Participant. The need to send a
Participant's child to college or to purch:lse a new
home shall not be considered unforeseeable emer-
gencies. The determination as to whether such an
unforeseeable emergency exists shall be based on the
merits of each individual case.
7.07 Transitional Rule for Pre-1989 Benefit Elections:
In the event that, prior to January 1, 1989, a Participant
or Beneficiary has commenced receiving benefits under
a payment option or has irrevocably elected a payment
option or benefit commencement d:lte, then that pay-
ment option or election shall remain in effect notwith-
standing any other provision of the Plan.
7.08 De Minimis Accounts: Notwithst:lnding the fore-
going provisions of this Article, if the v:llue of:l
Particip:lI1t's Account does not exceed S3,500 :lnd (a) no
amount has been deferred under the Plan \vith respect
to the Particip:lnt during the 2-ye:lr period ending on
the date of the distribution and (b) there has been no
prior distribution under the Plan to the P:lrticipant
.. ursuant to this Section 7.08, the P:lrticipant may elect
o receive or the Employer Ill:!Y distribute the ParticipaJlt's
e.mire f\ccount without the consent of the P:lrticipJJlt.
Such distribution sh:lll be m:lde in :l lUl11p SUI11.
ARTICLE VJJJ. LOANS TO PARTICIPANTS
8.01 Availability of Loans to Participants:
(a) Effective ]:lI1U:HY 1, 1997, the Employer may
elect to make loans avaibble to Participants in this
Plan. If the Employer has elected to make loans
aV:lilable to P:lrticip:lnts, a Participant may apply for
:l 10:ln from the Plan subject to the limitations and
other provisions of this Article.
(b) The Employer sh:lll establish \vritten guidelines
governing the gr:lnting of loans, provided that such
guidelines are approved by the Plan Administrator
and :lre not inconsistent with the provisions of this
Article, and that loans are made available to all
Participants on a reasonably equivalent basis.
3.02 Terms and Conditions of Loans to Participants:
Any loan by the Plan to a Participant under Section
8.01 of the Plan shall satisfy the following requirements:
(a) Availability. Loans shall be made available to all
Participants on a reasonably equivalent basis.
(b) Interest Rate. Loans must be adequately secured
and bear a reasonable interest rate.
(c) Loan Limit. No Participant loan shall exceed the
present value of the Participant's Account.
(d) Foreclosure, In the event of default on any
installment payment, the outstanding balance of the
loa~ shall be a deemed distribution. In such event,
an actu:lI distribution of a plan loan offset amount
will not occur until a distributable event occurs in
the Plan.
(e) Reduction of Account. Notwithstanding any
other provision of this Plan, the portion of the
Participant's Account balance used as a security
interest held by the Plan by reason of a loan out-
standing to the Participant shall be taken into
:lccount for purposes of determining the amount of
the Account b:llance payable at the time of death or
distribution, but only if the reduction is used as
repayment of the 10:ln.
Resolution 98-65
Page 12
Page 9-DEFERRED COMPENSATION PLAN AND TRUST
ATTACHMENT C-10
.
(f) Amoul1t of LO~I1. i\t the tiIl1e the 10.111 is Jll~dc.
the pril1cip:J! ~1110Ul1t of the 10~11 plus the outst~nJ-
il1g b~lance (princip~l plus ~ccrueJ jlltere~t) due 011
:ll1Y other outst~ndjng 10~l1s to the P.HticipJl1t (rol11
the Pbn Jnd frol11 J]] other plal1S o( the Employcr
thJt Jre qu:l1ified employer pbl1s ullder section
72(p)(4) of the Code 'sh:111 not excced the IC:1st of:
(1) $50,000, reduced by the excess (if :ll1Y) of
(:I) The highest outst:lnding bJbnce of 10:ll1s
from the Pbn during the one (1) yeJr
period ending on the dJY before the date
on which the 10:ln is made, over
(b) The outst:lnding b:lbnce of loans from the
Plan on the date on which such loan is
made; or
(2) One-half of the value of the Participant's
interest in all of his/her Accounts under
this Pl:lI1.
.
(g) Application for LO:ln. The PJrticipant must
give the Employer :ldequ:lte written notice, :IS
determined by the Employer, of the :lmount :lnd
desired time for receiving :I 10:ln. No more th:ln
one (1) loan n1:lY be m:lde by the Pbn to :I P:lrtici-
pant in any c:llendu year. No 10:ln shall be ap-
prove.d if an existing Joan from the Pbn to the
P:lrticipant is in default to any extent.
.
(h) Length of LO:ln. Any loan issued sh:lll require
the P:lrticip:lnt to rep:lY the 10:ln in substantially
equ:ll inst:lllments of principal :lnd interest, at le:lst
monthly, over a period that does not exceed five (5)
years from the date of the loan; provided, however,
that if the proceeds of the loan are applied by the
P:lrticipant to acquire any dwelling unit th:lt is to be
used within :I reasonable time (determined at the
time the loan is made) after the loan is m:lce as the
princip:ll residence of the, P:lrticipJnt, the five (5)
year limit shall not apply. In this event, the period
of repayment sh:lll not exceed :I re:lsonable period
determined by the Emp]oyer. Principal installments
and interest payments otherwise due may be sus-
pended for up to one (1) ye:lr during an authorized
leave of absence, if the promissory note so provides,
but not beyond the original term permitted under
this Subsection (h), with a revised payment schedule
(within such tCfIl1) il1stituted :11 the cl1d of such
period o( smpellsioll.
(i) PrepJYI1](>111. The P:nticipJnt s11:1]] be permitted
to repJY the 10al1 ill whole or in pJrt :1t :1I1Y timc
prior to ll1Jturity, without pcnJlty.
(i) Promissory Note. The loan shall be evidenced
by J promissory note executed by the Particip:lnt
and delivered to the Employer, and sh:lll bear
interest :1t a reason:1ble [:Ite determined by the
Employer.
(k) Security. The loan shall be secured by an
assignment of the Pnticipant's right, title and
interest in and to his/her Account.
(I) Assignrnent or Pledge. For the purposes of
p:lragr:lphs (f) and (g), :lssignment or pledge of any
portion of the P:lrticip:lnt's interest in the Pbn and a
10:ln, pledge, or :lssignment with respect to any
insurance contract purchased under the Plan, will be
tre:lted as a 10:ln.
(m) Other Terms and Conditions. The Emp]oyer
shall fix such other terms :lnd conditions of the loan
as it deems necess:lry to comply with legal require-
ments, to m:lintain the qualific:ltion of the Plan and
Trust under section 457 of the Code, or to prevent
the treatment of the 10:1I1 for tax purposes as a
distribution to the P:lrticipant. The Employer, in
its discretion for :lny reason, may fix other terms
and conditions of the 10:ln, ,not inconsistent with
the provisions of this Article a.nd section 72(p) of..
the Code.
8.03
P:lr!icip:lnt LO:ln Accounts:
(a) Upon approval of a loan to a Participant by the
Employer, an amount not in excess of the loan shall
be tr:lnsferred from the Participant's other invest-
ment [und(s), described in Section 6.05 of the Pl:ln,
to the Pnticip:lnt's Loan Account :IS of the Account-
ing D:lte immediately preceding the agreed upon
d:lte on which the loan is to be made.
(b) The :lssets of a P:lrticipant's Loan Account may
be invested and reinvested only in promissory notes
leceived by the Plan from the Participant as consid-
eration for a loan permitted by Section 8.01 of the
Plan or in cash. Uninvested cash balances in a
Page lO-DEFERRED COMPENSATION PLAN AND TRUST Resolution 98-65
ATTACHMENT C-ll
Page 13
.
P:Hticipant's Loan Account shall not bear interest.
Neither the Employer, the Administrator, nor any
other person shall be liable for any loss, or by reason
of any breach, that results from the Participant's
exercise of such control.
(c) Repayment of principal and payment of interest
shJll be mJde ;by pJyroll deduction or, where
repJyment CJnnot be nude by pJyroll deduction, by
check, Jnd shJll be invested in one (1) or more
other investment funds, in JccordJnce with Section
6.05 of the Pbn, JS of the next Accounting Date
Jfter pJyment thereof to the Trust. The Jmqunt so
invested shJll be deducted from the ParticipJnt's
LOJn Account.
(d) The Emp]oyer shall hJve the authority to
estJblish other reJsonJble rules, not inconsistent
with the provisions of the Pbn, governing the
estJblishment Jnd mJintenJnce of PJrticipJnt LOJn
Accounts.
ARTICLE IX NON-ASSIGNABILITY
.1 In General: Except JS provided in Article VIII
Jnd Section 9.02, no PJrticipJnt or BeneficiJry shall
hJve Jny right to commute, sell, assign, pledge, transfer
or otherwise conveyor encumber the right to receive
Jny pJyments hereunder, which pJyments and rights
are expressly decbred to be non-Jssign::tb]e Jnd
non-trJnsferable.
9.02 Domestic Rebtions Orders:
Nothing in this Section shJll be construed to autho-
rize any amount to be distributed under the Plan Jt
.1 time or in J form that is not permitted under
Section 457 of the Code. Any PJyment mJde to a
person other th::tn the PJrticipJnt pursuant to this
Section shJIl be reduced by required income tJX
withholding; the fJct thJt p::tyment is made to a
person other than the ParticipJnt may not prevent
such pJyment from being includib]e in the gross
income of the PJrticipJnt for withholding Jnd
income tJX reporting purposes.
(b) Release from Liability to ParticipJnt: The
Employer's li::tbi]ity to pay benefits to a Participant
shJll be reduced to the extent that amounts have
been pJid or set aside for pJyment to a spouse,
former spouse, or child pursuJnt to paragraph (a) of
the Section. No such trJnsfer shall be effectuJted
unless the Employer or Administrator has been
provided with satisfJctory evidence that the Em-
ployer and the AdministrJtor are releJsed from any
further c1Jim by the ParticipJnt with respect to such
amounts. The PJrticipJnt shJIl be deemed to have
released the Employer and the Administrator from
any claim with respect to such amounts, in any case
in which (i) the Employer or AdministrJtor has been
served with legal process or otherwise joined in a
proceeding relating to such transfer, (ii) the Partici-
pJnt has been notified of the pendency of such
proceeding in the manner prescribed by the law of
the jurisdiction in which the proceeding is pending
for service of process in such action or by mJil from
the Employer or Administrator to the PJrticipant's
bst known mJi]ing address, and (iii) the Participant
fJils to obtain an order of the court in the proceed-
ing relieving the Emp]oyer or Administrator from
the obligation to comply with the judgment, decree,
or orde r.
(.1) Allowance of Transfers: To the extent required
under finJI judgement, decree, or order (including
approval of a property settlement agreement) made
pursuJnt to a state domestic relations law, any
portion of a Participant's Account may be paid or
set aside for payment to a spouse, former spouse, or (c) Particip::ttion in Lega] Proceedings: The Em-
child of the Participant. Where necessary to carry p]oyer and Administrator shall not be obligated to
out the terms of such an order, a separate Account defend against or set .1side any judgement, decree, or
shJIl be established with respect to the spouse, order described in paragraph (a) Jny legal order
former spouse, or child who shall be entitled to relating to the garnishment of a Participant's ben-
nuke investment selections with respect thereto in efits, unless the full expense of such legal action is
the same m:lllIl e r ::ts th e Partici pa n t; any Jmou n t so borne by the P a rti ci pa n t. In the eve n t thJt the
set Jside for a spouse, former spouse, or child shall Participant's action (or inaction) nonetheless causes
be paid out in ::t ]ump sum at the eJrliest dJte thJt the Employer or Administrator to incur such ex-
benefits may be paid to the Participant, unless the pense, the amount of t,he expense may be charged
order directs J different time or form of pJyment. JgJinst the P:lrticipant's Account and thereby redu'ce
the Emp]oyer's obligation to pay benefits to the
Page ll-DEFERRED COMPENSATION PLAN AND TRUST 'Resolution 98-65
ATTACHMENT C-12
Page 14
.
.
PJrticipant. In the coune of any proceeding rcl:Jtillg
to divorce, se pa ra t ion, or chi Id' support, the E Il1-
ployer and Administr3tor shall be authorized to
disclose information rel:Jting to the Participant's
Account to the Participant's spouse, former spouse,
or child (including thc legal reprcsentatives oi the
spouse, former spouse, or child), or to a court.
ARTICLE X. RELATIONSHIP TO OTHER PLANS
AND EMPLOYMENT AGREEMENTS
This Plan serves in addition to Jny other retirement,
pension, or benefit plan or system presently in existence
or hereinafter established for the benefit of the
Employer's employees, :lI1d p:lrticip:ltion hereunder shall
nat :lffect benefits receivJble undcr :lny such phn or
system. Nothing contJined in this Plan shall be deemed
to., constitute In employment contrJct or'agreement
bet\veen :lny P:lrticipJnt and the En:ployer ar to give
any ParticipJnt the right to be retained in the employ of
the Employer. Nor shJll Jnything herein be construed
to. modify the terms of Jny employment contract or
agreement between a Particip:lnt and the Employer.
.'
ARTICLE, XI. AMENDMENT OR TERMINATION
OF PLAN
The Emplayer may :It Jny time amend this Plan pro-
vided th:lt it tra'nsmits such amendment in writing to the
Administrator :J.t least 30 days prior to thc effective dJte
of the amendment. The consent of the Administratar
shall not be required in order for such amendment to
become effective, but the Administrator shall be under
no. obligatian to. cantinue 3cting as Administratar
hereunder if it disapproves of such amendment. The
Employer may at any time terminate this Plan.
The Administrator may at any time propose an amend-
ment to the Plan by an instrument in writing transmit-
ted to the Employer at least 30 days before the effective
date of the amendment. Such amendment shall become
effective unless, within such 30-day period, the Em-
ployer notifies the Administrator in writing that it
disapproves such amendment, in which case such
amendment shall not become effective. In the event
of such disapprov:ll, the Administr:ltor shall be under
.na obligation to continue Jcting as AdministrJtor
ereunder.
Exccpt .1S may be required to. l11:1illtaill the status of the
Plan as :Ill eligible deferred compemation pbn under
section 457 of the Code or to camply with other
applicablc Jaws, 110 amendment or tcrmination of the
Plan sh:J.JJ divest any Participant of any rights with
rnpect to compensation deferred befarc the d:J.te of the
amendment or termin:ltion.
ARTICLE XII. APPLICABLE LAW
This PIJn and Trust shall be construed under the laws of
the state where the Employer is located and is estab-
lished with the intent thJt it meet the requirements of
In "eligible deferred ~ompensJtion plan" under Section
457 af the Code, :lS amended. The provisions of this
Phn Jnd Trust shJll be interI:>reted wherever possible in
conformity with the requirements af that section.
ARTICLE XIII. GENDER AND NUMBER
The masculine pronoun, whenever used herein, shall
include the feminine pronoun, and the singular shall
include the plural, except where the context requires
otherwise.
Page 12-DEFERRED COMPENSATION PLAN AND TRUST
Resolution 98-65
Pa~"Th~ID1ENT C-13
.
ARTICLE XIV. CONTRIBUTIONS FOR
REEMPLOYED VETERANS
14.01 Application and Definitions: This Article XIV.
applies despite any contrary provision of this Plan. For
purposes of this Article XIV. :
(a) Qualified nlilitary service means any service
in the uniformed services (as defined in chapter 43 of title 38,
United States Code ("Chapter 43 ")) by any inclividual if the
inclividual is entitled to reemployment rights under Chapter 43
with respect to such service.
(b) Elective deferral has the same meaning as in
Section 402(g)(3) of the Code and Treasury Regulation Section
1.402(g)-1(b), except that such term includes any deferral of
compensation under this Plan.
14.02 Service, Benefit, and Contribution Requirements: The
Employer shall be treated as meeting the requirements of
Chapter 43 only if each of the following requirements is met:
(a) An individual reemployed under Chapter 43
is treated with respect to this Plan as not having incurred a
break in service with the Employer by reason of the
.individual'S period of qualified military service.
(b) Each period of qualified military service
served by an individual is, upon reemployment under Chapter
43, deemed with respect to this Plan to constitute service with
. the Employer focme purpose of determining the accrual of
benefits under this Plan.
(c) An individual reemployed under Chapter 43
is entitled to accrued benefits that are contingent on the making
of, or derived from, employee contributions or elective
deferrals only to the extent the individual makes payment
under this Plan Vvith respect to the employee contributions or
elective deferrals.
(1) No such payment may exceed the
amount the individual would have been permitted or required
to contribute had the individual remained continuously
employed by the Employer throughout the period of qualified
military service. .
(2) Any payment under this Plan shall be
made during the period beginning with the date of
reemployment and whose duration is 3 times the period of the
qualified military service (but not greater than 5 years).
.14.03 Allocation of Earnings: No provision of Chapter 43
shall be construed as requiring any crediting of earnings to an
Employee with respect to any contribution before the
contribution is actually made.
14.04 Year to Which Contribution Limits Apply: If any
contribution is made by the Employer or an Employee under
this Plan and the contribution is required by reason of an
Employee's rights under Chapter 43 resulting from qualified
military service:
(a) The contribution shall not be subject to any
otherwise applicable limitation in Section 457 of the Code, and
shall not be taken into account in applying those limitations to
other contributions or benefits under this Plan or any other
plan, for the year in which the contribution is made.
(b) The contribution shall be subject to the
limitations in Section 457 of the Code for the year to which the
contribution relates (in accordance with rules prescribed by the
Secretary of the Treasury).
For purposes of this Section 14.04, any elective deferral or
employee contribution made under Section 14.05 shall be
treated as required by reason of the Employee's rights under
Chapter 43.
14.05 Make-up of Elective Deferrals and Employee
Contributions: If an Employee is entitled to the benefits of
Chapter 43 with respect to elective deferrals or employee
contributions under this Plan, the Employer shall be treated as
meeting the requirements of Chapter 43 with respect to the
elective deferrals and employee contributions only if the
Employer permits the Employee to make additional elective
deferrals and employee contributions under this Plan (in the
amounts determined under Section 14.06 or such lesser
amounts as are elected by the Employee) during the period that
begins on the date of the reemployment of the Employee with
the Employer and has the same length as the lesser of:
(a) The product of 3 and the period of qualified
military service that resulted in such rights; and
(b) 5 years.
14.06 Limits on Make-up of Elective Deferrals and
Employee Contributions: The amounts determined under this
Section 14.06 are the maximum amounts of the elective
deferrals and employee contributions that the Employee wo~d
have been permitted to make under this Plan in accordance
with the limitations in Section 457 of the Code during the
period of qualified military service if the Employee had
continued to be employed by the Employer during such period
and received compensation as determined under Section 14.07.
Proper adjustment shall be made to the amount detemtined
under the preceding sentence for any elective deferrals and
Resolution 98~65
Page 16
ATTACHMENT C-14
Page 13-DEFERRED COMPENSATION PLAN AND TRUST
.. employee contributions actually made during the period of
such qualified military service.
14.07 Deemed Compensation During Qualified Military
Service: For purposes of Sections 2.07 (defining "Includible
Compensation"), Section 2.09 (defining "Normal
Compensation"), and 5.01 (about the Normal Limitation) and
Section 457(e)(5) of the Code, an Employee who is in qualified
military service shall be treated as receiving compensation
from the Employer during the period of qualified military
service equal to:
(a) The compensation the Employee would have
received during that period if the Employee were not in
qualified military service, determined based on the rate of pay
the Employee would have received from the Employer but for
absence during that period; or
(b) If the compensation the Employee would
have received during that period was not reasonably certain,
the Employee's average compensation from the Employer
during the 12-month period immediately preceding the
qualified military service (or, if shorter, the period of
employment immediately preceding the qualified military
service).
.
ARTICLE XV. TRUST, ANNUITY
CONTRACTS, AND CUSTODIAL ACCOUNTS
15.01 Name; Designation of Trustee; Persons Through
Whom Trustee Acts: The trust created under this Plan shall be
known as the City of Springfield Deferred Compensation Trust
(the Trust). The City of Springfield (the Employer) shall
serve,. without compensation for service, as trustee of the
Trust. The Employer as trustee of the Trust shall act through
the City Manager and such other person or persons designated
in writing from time to time by the City Manager. Anyone of
them may act for the Employer as trustee without the consent
of the others.
15.02 Creation of Trust; Annuity Contracts and Custodial
Accounts: Despite any contrary provision of this Plan,
including an annuity contract or custodial account with respect
to this Plan, effective December 3 I, 1998, and in accordance
with Section 457(g) of the Code, all amounts of compensation
deferred under this Plan, all amounts transferred to this Plan as
provided in Section 6.09, all property and rights purchased
with such amounts, and all income attributable to such
amounts, propeny, or rights, shall be held in the Trust, in one
. or more c~todial accounts described in Section 401(f) of the
Code, or 10 one or more annuity contracts (as defined in
Section 401 (g) of the Code) described in Section 401 (f) of the
Code and issued by an insurance company qualified to do
business in the state where the contract was issued, for the
exclusive benefit of participants and beneficiaries under this
Plan. For purposes of this Section 15.02, (1) the term "annuity
contract" does not include a life, health or accident, property,
casualty, or liability insurance contract and -(2) the custodian of
any custodial account created pursuant to this Plan must be a
bank, as described in Section 408(n) of the Code, or a person
who meets the nonbank trustee requirements of Treasury
Regulation Section 1.408-2(e)(2)-(6) relating to the use of
nonbank trustees.
15.03 Annuity Contracts and Custodial Accounts; Initial
Funding of Trust: As of the close of business on December
31, 1998:
(a) All assets then held in annuity contracts or
custodial accounts described in Section 15.02 to fund the
Employer's obligations under this Plan are held for the
exclusive benefit of participants and beneficiaries under this
Plan.
(b) All assets then held by the Employer to fund
its obligations under this Plan and not then held in an annuity
contract or custodial account described in Section 15.02 shall
be held by the Employer as trustee, subject to the terms of the
Trust. The Employer hereby declares that as of the close of
business on December 31, 1998, all such assets are held by the
Employer as trustee, subject to the terms of the Trust.
(c) On or before December 31, 1998, the
Employer shall transfer (as of the close of business on
December 31, 1998) to the Employer as trustee, subject to the
terms of the Trust (or to one or more annuity contracts or
custodial accounts described in Section 15.02), additional
assets equal to any excess of (1) the aggregate amount of all
Participants' and alternate payees' Accounts as of the close of
business on December 31, 1998, over (2) the amount of all
assets held as of such time by the Employer to fund its
obligations under this Plan or in annuity contracts or custodial
accounts described in Section 15.02, so that at the close of
business on December 31, 1998, the aggregate amount of all
such Accounts as of such time shall equal the amount of all
assets held by the trustee (or in annuity contracts or custodial
accounts described in Section 15.02) as of such time.
15.04 Contributions to the Trust: Beginning at the close of
business on December 31, 1998:
(a) The Employer shall contribute to the Trust
(or to one or more annuity contracts or custodial accounts
described in Section 15.02) an amount equal to all amounts of
compensation deferred under this Plan on or after December
3 I. 1998. The Employer shall make each contribution as soon
as administratively feasible after the pay day for the pay period
for which the compensation is deferred, but in no event later
Page 14-DEFERRED COMPENSATION PLAN AND TRUST
Resoluti;on 98-65
PaifT16HMENT C-15
than 15 business days following the month in which the
. compensation deferred would otherwise have been paid to the
Participants.
(b) All amounts to be transferred to this Plan as
provided in Section 6.09 shall be transferred to the Trust or to
one or more annuity contracts or custodial accounts described
in Section 15.02.
(c) All Accounts under this Plan shall be
Accounts in the Trust or in the annuity contracts or custodial
accounts described in Section 15.02.
(d) All benefits payable under this Plan shall be
paid solely from the Trust or from the annuity contracts or
custodial accounts described in Section 15.02, and the
Employer shall have no obligation to contribute any amount
under this Plan except as expressly provided in this Plan.
(e) Except as otherwise provided in this Plan, in
no event shall the principal or income of this Plan (including
the Trust and annuity contracts and custodial accounts with
respect to this Plan) be paid to or revert to the Employer or be
used for, or diverted to, any purpose other than the exclusive
benefit of participants and beneficiaries under this Plan.
. ARTICLE XVI. REQUIRED DISTRIBUTIONS
16.01 Distribution to Participant on Required Beginning
Date: Despite any contrary provision of this Plan, including an
annuity contract or custodial account with respect to this Plan,
the entire interest of each Participant:
(a) Will be distributed to the Participant no later
than the Required Beginning Date; or
(b) 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) .
.
16.02 Distribution to Beneficiary if Participant Dies on or
After Required Beginning Date: If the distribution of the
Participant's interest has begun in accordance with Section
16.01(b) 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 I6.01(b) as of the date of the Participant's death.
16.03 Distribution to Beneficiary if Participant Dies Before
Required Beginning Date: If a Participant dies before the
distribution of the Participant's interest has begun in
accordance with Section 16.01(b), the entire interest of the
Participant will be distributed within 5 years after the death of
the Participant. However, with respect to any portion of the
Participant's interest payable to (or for the benefit of) a
Designated Beneficiary:
(a) The 5-year rule does not apply; and
(b) Not later than 1 year after the date of the
Participant's death or such later date as may be prescribed by
Treasury regulations, such portion shall begin to be distributed
(in accordance with Treasury regulations) over the life of the
Designated Beneficiary (or over a period not extending beyond
the life expectancy of the Designated Beneficiary).
16.04 Special Rilles for Surviving Spouse: With respect to a
Designated Beneficiary who is the Participant's surviving
spouse:
(a) The date on which the distributions are
required to begin for purposes of the exception to the 5-year
rule in Section 16.03 shall not be earlier than the date on which
the Participant would have attained age 701/2; and
(b) If the surviving spouse dies before the
distributions to the spouse begin, Sections 16.02 and 16.03
shall be applied as if the spouse were the Participant.
16.05 Rules for Application: For purposes of this Article
XVI.:
(a) "Required Beginning Date" means April 1 of
the calendar year following the calendar year in which the
Participant retires or attains age 701/2, whichever occurs later.
(b) "Designated Beneficiary" means any
individual designated as a beneficiary by the Participant.
(c) Unless otherwise elected by the Participant
(or the Participant's spouse for distributions beginning after the
Participant's death), life expectancy will be recalculated
annually for the Participant and the Participant's spouse,
except where recalculation is not allowed by Treasury
regulations.
(d) Any distribution required under the incidental
death benefit requirements of Section 457(d)(2)(B)(i)(I) of the
Code shall be treated as a distribution required under this
Article XVI.
(e) Despite any contrary provision of this Plan,
including an annuity contract or custodial account with respect
Page IS-DEFERRED COMPENSATION PLAN AND TRUST
Resolution 98-65
ATTACHMENT C-16
Page 18
to this Plan, distributions will be made in accordance with the
.Treasury regulations under Section 40 I (a)(9) of the Code,
including Treasury Regulation Section 1.40l(a)(9)-2.
(t) Distributions to an alternate payee or, after
the alternate payee's death, the alternate payee's beneficiary,
shall be treated as distributions to the Participant or the
Participant's Beneficiary. In case of an amount payable to an
alternate payee, this Article XVI. shall be applied in the
manner required to comply with Section 457(d)(2)(A) of the
Code and Treasury regulations thereunder, Section 40l(a)(9) of
the Code, and Treasury Regulation Sections 1.40l(a)(9)-1 and
-2.
16.06 Application and Precedence: This Article XVI.:
(a) Applies only to the extent this Article XVI.
requires a distribution to be made earlier than otherwise
required under this Plan.
(b) 'Overrides any distribution options in this
Plan, including an annuity contract or custodial account with
respect to this Plan, inconsistent with Section 401 (a)(9) of the
Code.
.
ARTICLE XVII. ADDITIONAL
DISTRIBUTION REQUIREMENTS
17.01 Distribution Beginning While Participant Alive: In
the case of a distribution beginning before the death of the
Participant, such ',distribution will be made in a form under
which:
(a) _ The amounts payable with respect to the
Participant will be paid at times specified by the Secretary of
Treasury which are not later than the time detennined under
Section 401 (a) (9) (G) of the Code (relating to incidental death
benefits); and
(b) Any amount not distributed to the Participant
during the Participant's life will be distributed after the death
of the Participant at least as rapidly as under the method of
distributions being used under Section l7.0l(a) as of the date
of the Participant's death.
17.02 Distribution Beginning After Participant's Death: In
the case of a distribution which does not begin before the death
of the Participant, the entire amount payable with respect to
the Participant will be paid during a period not to exceed 15
. years (or the life expectancy of the surviving spouse if such
spouse is the Beneficiary).
17.03 Application: Sections 17.01 and 17.02 apply only to
the extent they require a distribution to be made earlier than
otherwise required under this Plan.
17.04 Distributions Over More Than One Year: Any
distribution payable over a period of more than one year can
only be made in substantially nonincreasing amounts (paid not
less frequently than annually).
17.05 Interpretation and Precedence: The provisions of this
Article XVII. shall be interpreted and administered as required
to comply with Section 457(d)(2)(B) and (C) of the Code and
apply despite any contrary provision of this Plan, including an
annuity contract or custodial account with respect to this Plan.
ARTICLE XVID.
DOMESTIC RELATIONS ORDERS
18.01 Payment to Alternate Payee: Despite Article IX.
(about non-assignment), benefits under this Plan may be
assigned as provided in Section 9.02 only as provided in this
Article XVIII. To the extent required by and subject to the
restrictions of ORS 243.507, the amount of a Participant's
Account shall be paid, in whole or in part, to an alternate
payee if and to the extent expressly provided for in the terms of
any court decree of annulment or dissolution of marriage or of
separation, or the terms of any court order or court-approved -
property settlement agreement incident to any court decree of
annulment or dissolution of marriage or of separation.
18.02 Required Information and Documentation: However,
no benefit under this Plan may be paid to an alternate payee
under the terms of a court decree or order or court-approved
property settlement agreement ("Order") until after the date the
Employer receives a copy of the Order and such additional
information and documentation as satisfies the Employer:
(a) That the copy is a true copy of the Order.
(b) That the Order is, within the meaning of ORS
243.507, a court decree of annulment or dissolution of
marriage or of separation, or a court order or court-approved
property settlement agreement incident to such a decree.
(c) Of the extent to which the terms of the Order
expressly provide for payment of a benefit under this Plan to
an alternate payee.
(d)
Employer to:
Of any other fact or matter required for the
Page 16-DEFERRED COMPENSATION PLAN AND TRUST
Resolution 98-65
Page 19
ATTACHMENT C-17
.
(1) Determine the application of ORS
243.507 to the Order or the extent to ~hich the Order applies
to this Plan.
(2)
Comply with the Order or with ORS
243.507.
(3) Administer this Plan under the terms
of the Order,<,
18.03 Coordination With Other Provisions of This Plan:
With respect to amounts payable to an alternate payee:
(a) The amount payable to the alternate payee
shall be paid in a form that meets the distribution requirements
provided in Articles XVI. (about required distributions) and
XVll. (about additional distribution requirements).
.
(b) If a separate account is established for the
alternate payee, Section 2.04 (about Beneficiaries) shall apply
to the alternate payee as if the alternate payee were a
Participant. If a decree, order, or agreement requiring
payment of an amount to an alternate payee under the
provisions of ORS 243.507 satisfies the requirements of
Section 18.02 (about required information and documentation)
and specifies the alternate payee's beneficiaries, such
specification shall control over the provisions of this Plan
regarding the identity of Beneficiaries, and such beneficiaries
shall be the alternate payee's Beneficiary for purposes of this
Plan. The survivorship requirement of Section 2.04 does not
apply to such beneficiaries.
(c) The non-assignment provisions of Section
9.01 apply to the alternate payee and the alternate payee's
beneficiaries.
ARTICLE XIX. GENERAL
19.01 Effective Date: The effective date of this Plan is
December 31, 1998. However, despite any contrary provision
of this Plan, including an annuity contract or custodial account
with respect to this Plan:
(a) Section 5.01 (about the Normal Limitation) is
effective for taxable years beginning after December 31, 1996.
(b) Article XIV. (about contributions for
reemployed veterans) is effective October 13, 1996.
.
(c) The second paragraph of Section 7.01 (about
additional election to defer payment) and St;ction 7.08 (about
early payment of small accounts) are effective for taxable years
beginning after December 31, 1996.
(d) Section 9.02 and Article XVIII. (about
domestic relations orders) apply to decrees, orders, or
agreements entered or modified on or after January I, 1994.
(e) The provisions of Articles VII., XVI., and
XVII. implementing the distribution requirements of Section
457(d)(2) of the Code are effective January 1, 1989.
(f) The Normal Retirement Age of any
Participant who before December 31, 1998, was using the
Catch-up Provision in Section 4.03 of the Plan as stated
immediately before adoption of this Plan shall be the
Participantts N onnal Retirement Age as defined in the Plan as
so stated.
19.02 Overriding Provisions: Despite any contrary
provision of this Plan, including an annuity contract or
custodial account with respect to this Plan:
(a) The provisions of Article XV. (about the
Trust, Annuity Contracts, and Custodial Accounts) apply
despite any such contrary provision.
(b) Compensation will be deferred for any
calendar month only if an agreement providing of such deferral
has been entered into before the beginning of such month.
(c) The Administrator as defined in Section 2.03
is The International City Management Association Retirement
Corporation or one of its affiliates with respect to assets of the
Plan held in the ICMA Retirement Trust and Aetna Life
Insurance and Annuity Company or one of its affiliates (Aetna)
with respect to assets of the Plan held in an annuity contract
issued by Aetna, until the Employer determines otherwise.
(d) A Joinder Agreement as defined in Section
2.08 may consist of more than one document and shall be
effective even if it does not provide for all the matters
described in Section 2.08.
(e) The reference in Section 5.03 to "section
403(b), 402(a)(8), or 402(h)(1)(B) of the Code" shall be
deemed to be a reference to "section 403(b), 402(e)(3), or
402(h)(l)(B) or (k) of the Code".
(f) Reasonable compensation and expenses
described in Section 6.03 with respect to any annuity contract
or custodial account, to the extent properly payable from assets
of the Plan, may be paid only from such annuity contract or
custodial account.
(g) Effective for distributions made after
December 31, 1998, the $3,500 amount in Section 7.08 shall
be deemed to be $5,000.
Page 17-DEFERRED COMPENSATION PLAN AND TRUST
Resolution 98-65
Page 20 '
ATTACHMENT C-18
(h) The assets of this Plan shall be invested only
. in investments allowed by applicable Oregon law.
(i) This Plan shall not make loans available to
Participants. Section 6.07 and Article VIII. shall have no force
or effect.
G) The payment options with respect to any
portion of an Account shall not include any payment option not
made available with respect to that portion by the provider of
the investment arrangement in which that portion is invested,
but all payment options so provided must comply with the
requirements of Section 457(d) of Code and Articles XVI. and
XVII.
(k) With respect to any portion of a Participant's
or alternate payee's Account that is invested in an investment
arrangement provided by Aetna Life Insurance and Annuity
Company or one of its affiliates (Aetna), if the Participant or
alternate payee (or where applicable the Participant's or
alternate payee's Beneficiary) does not elect the date of
payment or the payment option by the date required under
Article VII., the date of payment and/or the payment option, as
the case may be, shall be as provided under then existing
agreements with Aetna with respect to this Plan, but the date of
payment and the payment option must comply with the
. requirements of Section 457(d) of the Code and Articles XVI.
and XVII.
(1) The provisions of this Plan regarding the
identity of a Participant's Beneficiary, including but not
limited to the l5"day survivorship provision in Section 2.04:
(1) Shall apply to any Participant or
alternate payee who dies after December 30, 1998, regardless
of whether the Participant or alternate payee designated the
Participant's or alternate payee's Beneficiary before, on, or
after December 31, 1998, and regardless of any contrary
provision in the Participant's or alternate payee's designation
of beneficiary form or any printed instructions thereto.
(2) Shall apply separately with respect to
each portion of the Participant's or alternate payee' s Account
that is invested with a different investment provider (e.g.,
Aetna or ICMA). A Participant's or alternate payee's
designation of beneficiary made with respect to the portion of
the Participant's or alternate payee's Account invested with
one investment provider shall not apply with respect to any
portion of such Account invested with any other investment
provider.
However, neither such provisions of this Plan nor this Section
. 19.02(1) shall take precedence over any contrary provision in a
court decree or order creating an alternate payee' s rights under
this Plan.
(m) The second paragraph of Article XI.
, (authorizing the Plan Administrator to amend this Plan) shall
have no force or affect. No amendment of this Plan pursuant
to Article XI. or Section 19.03 or otherwise shall (1) have the
effect of vesting in the Employer any interest in any principal
or income of this Plan (including the Trust and any annuity
contract or custodial account with respect to this Plan) or
(2) cause or permit any principal or income of this Plan
(including the Trust and any annuity contract or custodial
account with respect to this Plan) to be used for, or diverted to,
any purpose other than the exclusive benefit of the participants
and beneficiaries under this Plan.
(n) A participant may elect to have the limited
catch-up provision permitted by Section 457(b)(3) of the Code
and Treasury Regulation Section 1.457-2(t) and stated in
Section 5.02 apply only once, whether or not the limited
catch-up is utilized in less than all of the three taxable years
ending before the Participant attains Normal Retirement Age,
and whether or not the Participant or former Participant rejoins
this Plan or participates in another eligible deferred
compensation plan within the meaning of Section 457 of the
Code after retirement.
19.03 City Manager's Authority: The City Manager, on
behalf of the Employer, is authorized to take all actions and
make all decisions under this Plan that are to be taken or made
by the Employer, except that the City Manager is not
authorized to exercise the power to amend or terminate this
Plan granted in Article XI. In addition to the Employer's
power to amend granted in Article XI., the Employer, acting
through the City Manager, may at any time or times amend
this Plan by a document signed by the City Manager making
such amendment, but the City Manager may so amend this
Plan only to (a) clarify this Plan, (b) facilitate the
administration of this Plan, or (c) make changes adapting this
Plan to the requirements of law, changes in law, or the terms
of a collective bargaining agreement; all as determined in the
discretion of the City Manager.
DATED December 7, 1998.
EMPLOYER AND TRUSTEE:
CITY OF SPRINGFIELD, OREGON
By
City Manager
Page 18-DEFERRED COMPENSATION PLAN AND TRUST
Resolution 98-65
PKTTACthIENT C-19