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HomeMy WebLinkAboutResolution 95-42 06/05/1995 :<.. . . 1)0 . . . SPRINGFIELD NO. 95-42 A RESOLUTION ADOPTING THE CITY OF SPRINGFIELD, OREGON MONEY PURCHASE PENSION PLAN AND TRUST, DESIGNATING THE CITY MANAGER AS PLAN ADMINISTRATOR AND COMMITTEE UNDER SUCH PLAN AND TRUST, AND ADOPTING THE RESTATED CITY OF SPRINGFIELD, OREGON RETIREMENT PLAN. WHEREAS, by Resolution No. 89-27 the City of Springfield adopted the City of Springfield, Oregon Retirement Plan; and WHEREAS, the City of Springfield has amended the City of Springfield, Oregon Retirement Plan on four prior occasions; and WHEREAS, the City of Springfield finds it appropriate to adopt a restatement of the City of Springfield, Oregon Retirement Plan; to adopt the City of Springfield, Oregon Money Purchase Pension Plan and the City of Springfield, Oregon Money Purchase Pension Plan Trust; and to designate the City Manager as the Plan Administrator and committee under the city of Springfield, Oregon Money Purchase Pension Plan and such Trust; NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Springfield as follows: section 1. The Restated City of Springfield, Oregon Retirement Plan, as attached and made a part of this resolution, is adopted and shall be effective December 1, 1994. Section 2. The City of Springfield, Oregon Money Purchase Pension Plan and the City of Springfield, Oregon Money Purchase Pension Plan Trust, as attached and made a part of this resolution, are adopted and shall be effective July 1, 1995. Section 3. The City Manager is designated to be the Plan Administrator and committee under the City of springfield, Oregon Money Purchase Pension Plan and such Trust and is responsible for carrying out the responsibilities of the Plan Administrator and committee set forth in such Plan and Trust. Section 4. The City Manager as such Plan Administrator and committee may appoint persons to assist in performing the responsibilities of such Plan Administrator and committee, and the Trustee under such Plan and Trust may rely on the actions of such appointed persons as the acts of such Plan Administrator and committee. Page l--CITY OF SPRINGFIELD RESOLUTION ,. .. . ~ .. . . . - . ADOPTED by the Common council and approved by the Mayor of the City of Springfield this ~ day of June , 1995. ADOPTED by a vote of ~ for and ~ against. 12~j?J6 Mayor ATTEST: --Id~itu~ City Recorder Page 2--CITY OF SPRINGFIELD RESOLUTION r:; :\.1; [:W;::.I,: tt A:~?~~iDV~;) ~~ D/\TE: _~\3 \ ~5...<:S'" OFFiCE Or- CITY ATTORN~Y c:rrv (j~~ 8P~:m\l8::iELD . RESTATED RETIREMENT PLAN OF . CITY OF SPRINGFIELD, OREGON HERSHNER, HUNTER, MOULTON, ANDREWS & NEilL . Eugene, Oregon Attachment 1-1 Page i--RETIREMENT PLAN . Attachment 1-2 RESTATED CITY OF SPRINGFIELD, OREGON . RETIREMENT PLAN PARTY: CITY OF SPRINGFIELD, OREGON, an Oregon municipality (Employer) RECIT ALS; A. This Plan is intended to be a continuation of the restated City of Springfield, Oregon Retirement Plan adopted July, 17, 1989 and amended on four (4) prior occasions. B. For purposes of comparability of this Plan to the Oregon Public Employes' Retirement System, the benefits provided hereunder 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 AND EFFECTIVE DATE 1.1 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 but would be considered as a defined contribution plan according to the Governmental Accounting Standards Board, Statement 5. 1.2 The effective date of this Restated Plan is December 1, 1994. 1.3 Section 414(d). This Plan is intended to be a governmental plan as defined in IRC . Page 1--RETIREMENT PLAN . Attachment 1-3 SECTION 2 DEFINITIONS 2:1 Accrued Benefit: The balance of all of the Participant's accounts as of the date benefits are determined under the Plan. 2.2 Disability: Shall be total and permanent disability while employed by the Employer so that the Participant is unable to perform 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. 2.3 Early Retirement Age: Fifty (50) years of age for Public Safety Employees and fifty-five (55) years of age for all other employees, with twenty-five (25) years of service with the City of Springfield. 2.4 Employee: Any employee of the Employer maintaining the Plan or of any other Employer required to be aggregated with such Employer under IRC Section 414(b), (c), (m) or (0) if such other entity has adopted this Plan as a participating employer. Except as provided in Section 3, the term Employee shall include any leased employee deemed to be an Employee of the Employer described in the preceding sentence, as otherwise provided in IRC Section 414(n) or (0). The term "leased employee" means any person (other than an employee of the recipient) who, pursuant to an agreement between the recipient and any other person ("leasing organization"), has performed services for the recipient (or for the recipient and related persons determined in accordance with such IRC Section 414(n)(6)), on a substantially full-time basis for a period of at least one year, and such services are ofa type historically performed by employees in the business field of the recipient employer. Contributions or benefits provided a leased employee by the leasing organization _ which are attributable to services performed for the recipient employer shall be treated as provided by the recipient employer. A leased employee shall not be considered an employee of the recipient if: (i) such employee is covered by a money purchase pension plan providing: (1) a nonintegrated employer contribution rate of at least ten percent (10%) of Compensation, as defined in IRC Section 415(c)(3), but including amounts contributed by the Employer pursuant to a salary reduction agreement which are excludable from the Employee's gross income under IRC Sections 125, 402(e)(3), 402(h) or 403(b), (2) immediate participation, and (3) full and immediate vesting; and (ii) leased employees do not constitute more than twenty percent (20%) of the recipient's nonhighly compensated work force. Page 2--RETIREMENT PLAN Attachment 1-4 . . . . 2.5 Employee Required Contribution Account: The Participant's account. attributable to required contributions made to the Plan pursuant to the predecessor plan or allocated to such account pursuant to Section 4.8. 2.6 Employer: CITY OF SPRINGFIELD, OREGON. In addition, for purposes of determining the annual addition limitation contained in Section 9, the term Employer shall mean all employers included in (1) a controlled group of corporations, (2) trades or businesses which are under common control, (3) affiliated service groups, and (4) any other entity required to be aggregated with the Employer pursuant to IRC Section 414(0), all as defined in IRC Section 414 and regulations issued thereunder (as modified by IRC Section 415(h) and regulations issued thereunder). All employees of such entities shall be treated as employed by a single employer for such purposes. 2.7 Employer Contribution Account: The Participant's account as described in Section 4.2 a. 2.8 Employment Commencement Date: The first day on which the Employee is employed by the Employer. 2.9 Entry Date: The first day of the month coincident with or next following the date on which the Employee has met the eligibility requirements of Section 3.1. . 2.10 Insurance Company: Pacific Mutual Life Insurance Company or such other insurer which has contracted with the Employer to provide benefits under the Plan. 2.11 IRC: The Internal Revenue Code of 1986, as amended. 2.12 Limitation Year: The Plan Year. 2.13 Normal Retirement Age: Fifty-five (55) years of age_ for Public Safety Employees and Sixty (60) years of age for all other Employees. 2.14 Participant: Any person who under Section 3 or Section 4.6 is eligible to participate in the Plan and receive contributions hereunder and any person who was so eligible and who has an Accrued Benefit under the Plan. 2.15 Pick-up Account: The Participant's account as described in Section 4.2 b. or c. 2.16 Plan: The Retirement Plan embodied herein. . Page 3--RETIREMENT PLAN Attachment 1-5 2.17 Plan Administrator: The Employer named above including any committee established by it to perform the functions of the Plan Administrator hereunder. 2.18 Plan Name: CITY OF SPRINGFIELD, OREGON RETIREMENT PLAN. 2.19 Plan Year: Each consecutive twelve (12) month period ending on the last day of June. 2.20 Policy: The Group Retirement Policy G-9214 issued to the Employer by the Insurance Company or any other policy purchased by the Employer to provide benefits hereunder. 2.21 Public Safety Employee: A fire fighter or police officer as those terms are defined in Oregon Revised Statutes 237.610. 2.22 Reemployment Commencement Date: The first day on which the Participant is rehired. 2.23 Severance of Employment: Permanent termination of employment for any cause, whether at the request of the Employer or the Employee. 2.24 Valuation Date: The last day of the Plan Year then ending. Page 4--RETIREMENT PLAN Attachment 1-6 . . . . . . SECTION 3 ELIGIBILITY AND PARTICIPATION 3.1 In order to be initially eligible to participate in the Plan, an Employee must have completed six (6) consecutive months of employment with the Employer measured from the Employee's Employment Commencement Date and either be employed full time (as determined in the sole discretion of the Employer) by the Employer or be the Presiding Municipal Court Judge, the City Attorney or an Assistant City Attorney. 3.2 An Employee shall enter the Plan and become a Participant on the Employee's Entry Date. 3.3 The Employer shall notify all Employees who are eligible to participate in the Plan and shall provide or make available to such Employees a form of designation of beneficiary and an enrollment form. 3.4 A Participant shall be eligible to receive contributions hereunder only if the Participant remains an Employee. 3.5 . Upon Severance of Employment the Participant shall cease to be eligible to receive an allocation of contribution hereunder and the rights of such Participant or the Participant's beneficiary shall be limited to receive payment from the Participant's Accrued Benefit as hereinafter set forth. 3.6 If a Participant incurs a Severance of Employment and is rehired, such Employee must once again meet the eligibility requirements of Section 3.1 measured from the former Participant's Reemployment Commencement Date before resuming participation in the Plan. Upon completion of the eligibility requirements of Section 3.1, the Participant shall enter the Plan' on the Pa!ticipant's Entry Date subsequent to the Participant's Reemployment Commencement Date. In addition, if a Participant has incurred a Severance of Employment and (a) is rehired and has an Accrued Benefit under the Plan, (b) is reinstated to the Participant's position as a matter of legal right, or (c) is recalled consistent with Employer policies, such Participant shall immediately be eligible to receive an allocation of contribution hereunder as of the date of such rehire, reinstatement, or recall. 3.7 Notwithstanding the above: a. No leased employee, as defined in Section 2, shall be eligible to participate in the Plan. Page 5--RETIREMENT PLAN Attachment 1-7 b. No Employee shall be initially eligible to participate in the Plan or to receive contributions hereunder while the employee is an active member (within the . meaning of Oregon Revised Statutes 237.003) of the Oregon Public Employes' Retirement System. c. With respect to Monthly Earnings and monthly salary or gross wage earned after June 30, 1995, only the following Employees are eligible to participate in the Plan: (1) Any Public Safety Employee; (2) Any other person who is included in the collective bargaining unit represented by the Springfield Police Association; and (3) Any Employee not described in (1) or (2) above whose date of Disability is before July 1, 1995, but such Employee is eligible to participate in the Plan only with respect to the crediting provided in Sections 4.6 and 7.3. However, an Employee who is a Firefighter as defined in Exhibit A or a Management Employee as defined in Exhibit 8 is not eligible to participate in the Plan except as permitted by Section 17 and Exhibits A and 8. Monthly Earnings earned after June 30, 1995 are those Monthly Earnings payable after July 31, 1995. . Page 6--RETIREMENT PLAN . Attachment 1-8 SECTION 4 . CONTRIBUTIONS FOR FUTURE SERVICE 4.1 This Plan shall be administered on a Plan Year basis. 4.2 The Employer shall cause to be contributed to the Plan on behalf of each Participant each month a sum equal to the following: a. An Employer contribution to be allocated to the Participant's Employer Contribution Account equal to the following: (1) The allocation required by Section 4.7 for Pul;>lic Safety Employees, (2) Ten percent (10%) of the Participant's Monthly Earnings for Police Dispatchers and Property Controllers who are full-time employees (as determined in the sole discretion of the Employer), or . (3) Seven percent (7%) of the Participant's Monthly Earnings for all other Participants who are full-time employees (as determined in the sole discretion of the Employer) and for the Presiding Municipal Court Judge, the City Attorney, and the Assistant City Attorneys. b. For Participants for whom Section 4.2 a. requires a contribution, an additional Employer contribution to be allocated to the Participant's Pick-up Account based on the Participanrs Monthly Earnings as follows: Monthlv Earnings Contribution Percentage Less than $1,500 6% Equal to or more than $1,500 7% c. An additional Employer contribution to be allocated to the Participant's Pick-up Account equal to the excess, if any, of: (i) Six percentofthe portion ofthe Participant's monthly salary or gross wage (within the meaning of Oregon Constitution Article IX, Section 10) earned by the Participant after December 7, 1994 over Section 4.2 b. (ii) The amount contributed on behalf of the Participant under . Page 7--RETIREMENT PLAN Attachment 1-9 d. If earnings under the Policy are inadequate to provide for the credited rate of return as specified in Section 7.3 and the reserve fund specified in . Section 7.4 is inadequate, the Employer shall make an additional contribution in such amount as to provide the minimum credited rate of return provided for in Section 7.3. 4.3 Except as otherwise provided for herein, 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 of the Plan or their beneficiaries. 4.4 No amount forfeited by a Participant as hereinafter provided shall be applied to increase the benefits of any Participant or beneficiary. Amounts so forfeited shall reduce pro tanto the amount of the Employer's contribution next falling due under the provisions of the Plan as provided in Section 4.2 a. to the extent such Employer contributions are not pick-up contributions as provided in Section 4.8 a. or at the discretion of the Employer shall be retained unallocated in the Plan to provide a reserve for earnings pursuant to Section 7.4; provided, however, that in the event of a termination of this Plan any amounts remaining unallocated after satisfaction of all liabilities to the Participant shall revert to the Employer. 4.5 For all purposes herein: a. The annual compensation of each Participant taken into account under the .plan for any year shall not exceed Two Hundred Thousand Dollars ($200,000), as adjusted by the Secretary of Treasury at the same time and in the same manner as under IRC Section 415(d). In determining the compensation of a Participant for purposes of this limitation, the rules of IRC Section 414(q) shall apply, except in applying such rules, the term "family" shall include only the spouse of the Participant and any lineal descendants of the Participant who have not attained age nineteen (19) before the close of the year. If, as a result of the application of such rules, the Two Hundred Thousand Dollar ($200,000) limitation (as adjusted) is exceeded, then the limitation shall be prorated among the affected individuals in proportion to each such individual's compensation as determined under this Section prior to the application of this limitation. In addition to other applicable limitations set forth in the Plan, and despite any other provision of the Plan, for Plan Years beginning on or after January 1, 1994, the annual compensation of each Employee taken into account under the Plan shall not exceed the OBRA '93 annual compensation limit. The OBRA '93 annual compensation limit is $150,000, as adjusted by the Commissioner for increases in the cost of living in accordance with IRC Section 401 (a)( 17-)(B). The cost-of-Iiving adjustment in effect for a calendar year applies to any period, not exceeding twelve (12) months, over which compensation is determined (determination period) beginning in such calendar year. If a determination period consists of fewer than twelve (12) months, the OBRA '93 annual compensation limit will be multiplied by a fraction, the numerator of which is the number of months Page 8--RETIREMENT PLAN Attachment 1-10 . . . in the determination period, and the denominator of which is twelve (12). For Plan Years beginning on or after January 1, 1994, any reference in this Plan to the limitation under Section 401 (a)(17) of the Code shall mean the OBRA '93 annual compensation limit set forth in this provision. If compensation for any prior determination period is taken into account in determining an Employee's benefits accruing in the current Plan Year, the compensation for that prior determination period is subject to the OBRA '93 annual compensation limit in effect for that prior determination period., For this purpose, for de-termination periods beginning before the first day of the first Plan Year beginning on or after January 1, 1994, the OBRA '93 annual compensation limit is $150,000. b. Monthly Earnings shall mean regular salary and wages of the Participant not including bonuses, overtime pay, or other special allowances or compensation. 4.6 Despite the provIsions of Section 3, if a Participant suffers a Disability prior to attaining age sixty (60), the Participant's Employer Contribution Account shall continue to be credited for each month with an amount equal to the allocation provided in Section 4.2 a. based on the Monthly Earnings of the Participant and the contribution rate with respect to the Participant provided in Section 4.2 a. as of the date of such Disability. Such crediting shall be made during the period commencing on the date the Employee is determined to have a Disability and terminating on the earlier of: . a. The date the Participant attains age sixty (60); or b. The date of the Participant's death; or c. The date the Employee is no longer suffering a Disability. Such crediting shall be funded first from the reserve fund specified in Section 7.4 and, if such reserve fund is inadequate, from contributions by the Employer. 4.7 A Public Safety Employee who has met the requirements for participation hereunder and who has not elected to participate in the Public Employee Retirement System as provided in Section 17 shall receive an allocation of Employer contribution, effective July 1, 1990, which is no less than that required to be "equal to or better than" benefits provided under the Oregon Public Employee Retirement System. Such determination of comparability shall be made by the actuary then employed by the Plan, giving consideration to all employee benefits provided that class of employees by the Employer and not limited to benefits provided pursuant to the Plan. 4.8 Section 4.2 is subject to the following: . Page 9--RETIREMENT PLAN Attachment 1-11 a. The contributions required by Section 4.2 a. are intended to be pick-up. contributions as permitted in IRC Section 414(h)(2) to the extent of the excess described in Section 1.b. (3) of Exhibit C. The contributions required by Section 4.2 b. and c. that are allocated to Pick-up Accounts are intended to be pick- up contributions as permitted in IRC Section 414(h)(2), and are made under a salary reduction arrangement to the extent provided in Exhibit C or in a collective bargaining agreement or to the extent required by Oregon Constitution Article IX, Section 10. . b. Despite the provisions of Section 4.2, any contribution required by Section 4.2 c. with respect to monthly salary or gross wage earned during December 1994 for which Section 4.2 a. does not require a contribution are Employee contributions and shall be allocated to the Participant's Employee Required Contribution Account. c. earned before: Section 4.2 c. does not apply to monthly salary or gross wage (il July 1, 1997 by Participants who are in a collective bargaining unit at the time the monthly salary or gross wage is earned. (iil July 1, 1996 by Participants who are not in a collective bargaining unit at the time the monthly salary or gross wage is earned and who are hired or rehired by the Employer before December 31, 1994, but only while thereafter continuously employed by the Employer and only while Section 4.2 a. requires a contribution with respect to the Participant's Monthly Earnings. . Page 10--RETIREMENT PLAN . Attachment 1-12 . . . SECTION 5 PAST SERVICE BENEFIT 5.1 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 coverag'e 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 shall be distributed as provided in Section 11 hereof. 5.2 shall be: The actuarial assumptions in determining the benefits hereunder a. Interest: Nine percent (9%) per year. b. Mortality: 1971 GAM projected to 1980 PM Scale E. Page 11--RETIREMENT PLAN Attachment 1-13 SECTION 6 PARTICIPANTS' ACCOUNTS 6.1 The Plan Administrator shall create and maintain a separate account for each Participant captioned Employer Contribution Account, Pick-up Account, Employee Required Contribution Account and Voluntary Contribution Account. Such account shall be primarily for accounting purposes and shall not restrict the operation of the Plan as if it were a single fund. The fact that an allocation has been made to a Participant's account will not operate to vest in any Participant any right, title or interest in or to the same or in or to any asset of the Plan. The vesting of the Participant's account shall be accomplished only at the times and on the contingencies hereinafter set forth. 6.2 The Employer's contribution for each Plan Year shall be allocated in accordance with Sections 4.2 and 4.6 of the Plan. Page 12--RETIREMENT PLAN Attachment 1-14 . . . . . . SECTION 7 VALUATION AND RESERVE ACCOUNT 7.1 As of the Valuation Date, the Insurance Company shall value the assets of the Plan at the then current fair market value. 7.2 In the determination of the fair market value of the assets, the Insurance Company shall use customary methods of valuation and sources of information. The Insurance Company shall incur no liability for any valuation made in good faith. 7.3 Within (90) days after each Valuation Date the Plan Administrator shall allocate as earnings among the accounts of the Participants a rate of return to be determined by the Employer applicable to such Valuation Date. a. The credited rate of return on contributions (and earnings thereon) made after June 30, 1994 for Participants who, while accruing the Monthly Earnings with respect to which the contributions (including contributions under Section 4.6) are made, are neither Public Safety Employees nor represented by the Springfield Police Association, shall not be less than eight percent (8%) per annum. The Plan Administrator may establish separate subsidiary accounts for such contributions and earnings. b. In all other cases, the credited rate of return shall not be less than nine percent (9%) per annum. c. If distributions or additions are made to or from one or more accounts of a Participant the Plan Administrator, in the Plan Administrator's sole discretion, shall determine the appropriate method of allocation of earnings reflecting such adjustme_nts. 7.4 The Plan Administrator shall maintain a reserve fund in which shall be deposited earnings under the Policy in excess of the amount allocated pursuant to Section 7.3. In addition, forfeitures provided in Section 8 shall be allocated to such reserve account to the extent provided in Section 4.4. In any year in which earnings under the Policy are less than the amount determined to be allocable by the Employer, such additional amounts shall be withdrawn from the reserve fund for purposes of allocation of earnings provided in Section 7.3. Page 13--RETIREMENT PLAN Attachment 1-15 SECTION 8 VESTING . 8.1 Each Participant shall have a fully vested interest in the balance of the Participant's Accrued Benefit attributable to Employer contributions made pursuant to Section 4.2 a. upon completion of 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 8, shall be credited for each month in which a contribution is made on behalf of the Participant pursuant to Section 4.2 a. of the " Plan or pursuant to Section 4.2 a. of the City of Springfield, Oregon Money Purchase Pension Plan. All contributions allocated to a Participant's Pick-up Account, Employee Required Contribution Account or Voluntary Contribution Account shall be fully vested and nonforfeitable. 8.2 If a former Participant incurs a Severance of Employment and is rehired such Participant shall have a fully vested interest in the balance of the Participant's Accrued Benefit attributable to Employer contributions made after rehire and pursuant to Section 4.2 a. upon completion of sixty (60) months of participation in the Plan and/or the City of Springfield, Oregon Money Purchase Pension Plan, measured from the former Participant's Reemployment Commencement Date; provided, however, that if the Participant is reinstated to the Participant's position as . a matter of legal right, or recalled consistent with Employer policies, such Participant shall be credited with all months of participation in the Plan including service prior to the Severance of Employment preceding such reinstatement or recall. 8.3 In the event of death, Disability or attainment of Early Retirement Age or Normal Retirement Age, the Participant's Employer Contribution Account shall become fully vested. 8.4 If a Participant incurs a Severance of Employment, the non'vested portion of the Participant's Employer Contribution Account shall be forfeited and transferred to the reserve fund described in Section 7.4 to the extent provided in Section 4.4 as of the end of the Plan Year in which such Severance of Employment occurs. Page 14--RETIREMENT PLAN . Attachment 1-16 . . . SECTION 9 LIMITATION ON ADDITIONS 9.1 Notwithstanding any provIsIon of this Plan, an annual benefit payable hereunder shall not exceed the lesser of Ninety Thousand Dollars ($90,000), as adjusted for increases in the cost of living as permitted under regulations issued or to be issued by the Secretary of Treasury or his delegate, or one hundred percent (100%) of the Employee's average compensation for the three (3) consecutive years in which the Employee received the highest aggregate compensation from the Employer, plus such additional annual benefit as may be allowed by the Employee Retirement Income Security Act of 1974, as amended from time to time. In the case of a benefit beginning before age sixty-two (62), the Ninety Thousand Dollar ($90,000) limitation or a greater amount as allowed by such Act, but not the one hundred percent (100%) of compensation limitation, shall be the actuarial equivalent of such benefit beginning at age sixty-two (62), but such reduction shall not reduce such limitations below (i) Seventy-Five Thousand Dollars ($75,000) if the benefit begins at or after age fifty-five (55), or (ii) jf the benefit begins before age fifty-five (55), the equivalent of the Seventy Five Thousand Dollar ($75,000) limitation for age fifty-five (55). If such benefit begins after age sixty-five (65), the determination as to whether the Ninety Thousand Dollar ($90,000) limitation has been satisfied shall be made, in accordance with regulations prescribed by the Secretary of Treasury, by increasing such limitation so that the limitation (as so increased) equals an annual benefit (beginning when such retirement income benefit begins) which is equivalent to a Ninety Thousand Dollar ($90,000) annual benefit beginning at age sixty-five (65). All qualified defined benefit plans maintained by the Employer (whether or not such plans are terminated) shall be treated as one defined benefit plan for purposes of this paragraph. 9.2 In no event shall the sum of a. and b. as follows exceed 1: a. A fraction, the numerator of which is the projected annual benefit under all qualified defined benefit plans of the Employer at the end of a Plan Year and the denominator of which is the lesser of: (1) The product of 1.25, multiplied by the dollar limitation in effect in IRC Section 415(b)(1 )(A) for such Plan Year (adjusted for increases in the cost of living as permitted under regulations issued or to be issued by the Secretary of Treasury or his delegate). Page 15--RETIREMENT PLAN Attachment 1-17 (2) The product of 1.4, multiplied by one hundred percent (100%) 'of the Participant's average Compensation for the Participant's high three (3) years for such Plan Year. . b. A fraction, the numerator of which is the sum of annual additions to the Participant's account under all qualified defined contribution plans of the Employer at the end of the Plan Year and the denominator of which is the lesser of the following amounts determined for the Plan Year and each prior Plan Year of Service with the Employer: (1) The product of 1.25, multiplied by the dollar limitation in effect under IRC Section 415(c)( 1 )(A) for such Plan Year (adjusted for increases in the cost of living as permitted under regulations issued or to be issued by the Secretary of Treasury or his delegate) (determined without regard to any special limitation for an employee stock ownership plan), or (2) The product of 1.4, multiplied by twenty five percent (25%) of the Participant's Compensation for such Plan Year. If the sum of the foregoing would exceed 1, but for an automatic freeze or reduction of the rate of benefit accrual, then a Participant's accrued benefit under such qualified defined benefit plans shall be frozen or reduced to the extent necessary to ensure that the sum of the foregoing does not exceed 1. If such plans do not provide for such a freeze or 'reduction then the annual additions under this Plan shall be reduced until the sum of the foregoing does not exceed 1. . 9.3 If, as a result of the allocation of forfeitures, a reasonable error in estimating a Participant's annual Compensation, or such other reason as is permitted under Treasury Regulation Section 1.415-6(b)(6) the annual addition for a Participant would exceed the limitations contained herein, the amount of such excess shall be allocated or reallocated to other Participants' accounts. However, if such allocation or reallocation would exceed the limitations contained in this Section, then the excess amount shall be held unallocated in a suspense account for the Limitation Year and allocated and reallocated in the next Limitation Year to all participants in the Plan before any Employer contributions and Employee contributions which would constitute annual additions may be made to the Plan for that Limitation Year. In no event shall any excess amounts held in such suspense account be distributed to Participants or former Participants. No allocation of gains or losses shall be allocated to the suspense account. If the excess is wholly or partially attributable to Employee contributions, such amount shall be first refunded. 9.4 For purposes of this Section, Compensation shall include the Participant's wages, salaries, fees for professional services and other amounts received for personal services actually rendered in the course of employment with the Page 16--RETIREMENT PLAN . Attachment 1-18 . . . Employer (including, but not limited to, commissions paid salesmen, compensation for services on the basis of a percentage of profits, commissions on insurance premiums, tips and bonuses). Such terms shall not, however, include the following: a. Employer contributions to a plan of deferred compensation to the extent that, before the application of IRe Section 415 limitations to that plan, the contributions are not includable in the gross income of the Participant for the taxable year in which contributed. 'b. Employer contributions made on behalf of a Participant to a simplified employee pension described in IRe Section 408(k) within the taxable year in which contributed, to the extent such contributions are deductible by the Participant under IRC Section 219(bl(7). c. Any distributions from a plan of deferred compensation regardless of whether such amounts are includable in the gross income of the Participant when distributed; provided, however, any amounts received by the Participant pursuant to an unfunded nonqualified plan may be considered as compensation in the year such amounts are includable in the gross income of the Participant. d. Amounts realized from the exercise of a nonqualified stock option, or when restricted stock (or property) held by a Participant either becomes freely transferable or is no longer subject to a substantial risk of forfeiture. e. Amounts realized by a Participant from the sale, exchange or other disposition of stock acquired under a qualified stock option. f. Other amounts which receive special tax benefits such as premiums for group term life insurance (but only to the extent that the premiums are not includable in the gross income of the Participant) or contributions made by the Employer (whether or not under a salary reduction agreement) toward the purchase of an annuity contract described in IRC Section 403(b) (whether or not the contributions are excludable from the gross income of the Participant). Page 17--RETIREMENT PLAN Attachment 1-19 SECTION 10 MERGER . 10.1 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 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). Page 18--RETIREMENT PLAN . . Attachment 1-20 . . . SECTION 11 DISTRIBUTION OF BENEFITS 11.1 Benefits under the Plan shall be distributed as provided in this Section 11. No claim for benefits need be made. 11.2 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 balance of the Participant's Accrued Benefit attributable to Employer contributions may at the election of the Participant be deferred until required to be distributed pursuant to Section 11.3, Section 11.7, Section 11.8, or Section 11.9. 11.3 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 11.3, Section 11.7, or Section 11.8. 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 11.3 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. 11.4 Upon the first to occur of: 0) Severance of Employment (unless the Participant or beneficiary has elected pursuant to Section 11.2 or Section 11.3 to defer distribution), Oi) The end of the deferral elected pursuant to Section 11.2 or Section 11.3, or Page 19--RET/REMENT PLAN Attachment 1-21 (iii) The death of a Participant after Severance of Employment (unless the beneficiary has elected pursuant to Section 11.3 to defer distribution), . the Plan Administrator shall cause the Participant's vested Accrued Benefit (not including any Accrued Benefit pursuant to Section 4.6) to be distributed to the Participant or the Participant's beneficiary, as the case may be, in such one (1) of the following methods of distribution as the Participant or the Participant's beneficiary, as the case may be, elects in writing to receive: - a. A lump sum distribution. 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 under the' PoliCY; provided, however, that any such form of benefit shall be determined and made in accordance with regulations issued under IRe Section 401 (a)(9), including the minimum distribution incidental benefit requirements of Treasury Regulation Section 1.401 (a)(9)-2. . d. The amount of the monthly payments to be provided by any annuity purchase or installment option pursuant to this Section 11.4 shall be determined based on applying the sum of the Participant's vested Accrued Benefit (not including any Accrued Benefit pursuant to Section 4.6) as the premium at the annuity purchase 'rate then in effect under the Policy. 11.5 Upon the earlier of (1) the date the Participant attains age sixty-five (65) or (2) the date of the Participant's death, the Plan Administrator shall cause the Participant's Accrued Benefit pursuant to Section 4.6 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 described in Section 11.4 a., b. or 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 11.5 shall be determined based on applying the sum of the Participant's Accrued Benefit pursuant to Section 4.6 as the premium at the annuity purchase rate then in effect under the Policy. Page 20--RETIREMENT PLAN . Attachment 1-2~ . 11 .6 A Participant who has accrued a past service benefit as provided in Secti<::m 5, shall be eligible to receive, as an additional benefit hereunder, 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. 11 .7 Distributions under Section 11 will be made in accordance with the regulations under IRC Section 401 (a)(9), including Treasury Regulation Section 1.401 (a)(9)-2, and according to the incidental death benefit requirement in IRC Section 401 (a){9){G). For purposes of Section 11: a. The life expectancy of a Participant and a Participant's spouse (other than in the case of a life annuity) shall be redetermined, but not more frequently than annually and in accordance with the rules as may be prescribed by the Secretary of Treasury and Regulations. b. Life expectancy and joint and last survivor expectancy shall be computed using the return multiples of Treasury Regulation 1.72-9. 11.8 This Section 11.8 shall apply despite any other provIsion of Section 11, but shall apply only to the extent this Section 11.8 requires an amount to be distributed for purposes of IRC Section 401 (a){9) earlier than otherwise required in Section 11. . . a. If the distribution of a Participant's interest has begun in accordance with the methods selected under this Section and the Participant dies before the entire interest has been distributed to the Participant, the remaining portion of such interest shall be distributed at least as rapidly as under the method of distribution selected under this Section as of the date of the Participant's death. b. If a Participant dies before a Participant has begun to receive any distributions of the Participant's interest under the Plan, the Participant's death benefit shall be distributed to the Participant's beneficiaries within five (5) years after the Participant's death. Notwithstanding the foregoing, the five (5) year distribution requirement shall not apply to any portion of the deceased Participant's interest which is payable to or for the benefit of a designated beneficiary. In such event such portion shall be distributed over the life of such designated beneficiary (or over a period not extending beyond the life expectancy of such designated beneficiary) provided such distribution begins not later than one (1) year after the date of the Participant's death, or such later date as may be prescribed by the Secretary of Treasury in regulations. If the Participant's spouse is the Participant's beneficiary, then the requirement that the distributions commence within one (1) year of a Participant's death shall not apply. In lieu thereof, such distribution must commence no later than the date on which the deceased Participant would have attained age seventy and one half (70-1 /2). If the surviving spouse dies before the distribution to such spouse begins, . Page 21--RETIREMENT PLAN Attachment 1-23 then the five (5) year distribution requirement shall apply as if the spouse were the Participant. . 11.9 Despite any other provision of the Plan, and except as otherwise provided in this Section 11.9, a Participant shall receive, no later than April 1 st of the following calendar year, a lump sum distribution of the Participant's interest as of the end of the calendar year in which the Participant (1) attains age seventy and one-half (70-1/2) or (i) retires, whichever is later. Any allocations to the account. of the Participant subsequent to that date shall be distributed, in a lump sum, as soon as practicable as of the end orthe Plan Year in each succeeding calendar year. The following transition rules shall a'pply to the foregoing: a. A Participant who attains age seventy and one-half (70-1 /2) before January 1, 1988 shall receive a distribution in accordance with subpart (1) or (2) below: (1) Not a five percent (5 %) owner. The required beginning date of a Participant who is not a five percent (5 %) owner is the first day of April of the calendar year following the calendar year in which the later of retirement or attainment of age seventy and one-half (70-1/2) occurs. (2) Five percent (5%) owner. The required beginning date of a Participant who is a five percent (5 %) owner during any year beginning after December 31, 1979 is the first day of April following the later of: . (a) The calendar year in which the Participant attains age seventy and one-half (70-1/2), or (b) The earlier of the calendar year with or within which ends the Plan Year in which the Participant becomes a five percent (5%) owner or the calendar year in ~hich the Participant retires. The reql!ired beginning date of a Participant who is not a five percent (5 %) owner who attains age seventy and one-half (70-1/2) during 1988 and who has not retired as of January 1, 1989 is April 1, 1990. b. Five percent (5 %) owner. A Participant is treated as a five percent (5%) owner for purposes of this subsection if such Participant is a five percent (5%) owner as defined in IRe Section 416(i) (determined in accordance with Section 416 but without regard to whether the Plan is top heavy) at any time during the Plan Year ending with or within the calendar year in which such owner attains age sixty-six and one-half (66-1/2) or any subsequent Plan Year. Page 22--RET1REMENT PLAN . Attachment 1-24 . c. Once distributions have begun to a five percent (5 %) owner under this section, they must continue to be distributed, even if the Participant ceases to be a five percent (5 %) owner in any subsequent Plan Year. d. The provisions of the foregoing shall not apply to any Participant who made a valid election under Section 242(b) of the Tax Equity and Fiscal Responsibility Act of 1984; provided, however, that for calendar years beginning after December 31, 1988, such distributions must meet the minimum distribution incidental benefit requirements in Treasu,ry Regulation Section 1.401 (a){9)-2. 11.10 Despite any other provision of the Plan that would otherwise limit a distributee's election under this Section 11, 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: . 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 described in IRC Section 401 (a), that accepts the distributee's eligible rollover distribution. 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. . Page 23--RETIREMENT PLAN Attachment 1-25 d. Direct rollover: A direct rollover is a payment by the Plan to the eligible retirement plan specified by the distributee. . 11.11 Upon Severance of Employment of a 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 form 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. 11.12 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 beneficiary 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). 11 .1'3 The provision in Section 11 .2 allowing certain Participants to elect . to defer distribution does not apply to any Participant: a. Whose Severance of Employment occurs or occurred on or before the Transfer Date as determined under Section 18.1; b. Whose Severance of Employment is not or was not because of Disability and does not or did not occur on or after attainment of Early Retirement Age or Normal Retirement Age; and c. Who upon Severance of Employment would not be in the Remaining Group as defined in Section 18.2 if the Remaining Group were determined by substituting the date of the Participant's Severance of Employment for "June 30, 1993" where it appears in the definition of the Remaining Group in Section 18.2. Page 24--RETIREMENT PLAN . Attachment 1-26 SECTION 12 . RIGHTS AND DUTIES OF PLAN ADMINISTRATOR 12.1 The administration of the Plan shall be in the Plan Administrator who shall be deemed the named fiduciary. 12.2 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. 12.3 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 contribution to date, if any, and a statement of the amount of funds credited or allocable to such Participant's individual accounts. . 12.4 The Plan Administrator shall have the power to construe and interpret this Plan and to determine all questions that shall arise hereunder. 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. 12.5 In any matter in which the Plan Administrator may be required to take any action hereunder, 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. 12.6 The Plan Administrator may consult with legal counsel {who may or may not be counsel for the Employer} concerning any question which arises hereunder, 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. . Page 25--RETIREMENT PLAN Attachment 1-27 12.7 If the Plan Administrator consists of more than one person a majority must agree to act, either at a meeting or in writing; provided, however, that the Plan Administrator may authorize one member to execute documents or take action on behalf of the Plan. 12.8 . The Plan Administrator shall pay for administrative expenses, including legal, actuarial, accounting and administrative expenses from funds accumulated in the Plan. Page 26--RETIREMENT PLAN Attachment 1-28 . . . SECTION 13 . AMENDMENT. TERMINATION AND BENEFIT LIMITATION 13.1 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 hereunder without the written consent of the Plan Administrator first being obtained. . 13.2 No Plan amendment may be made changing the vesting schedule hereunder 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. 13.3 The Employer has established the Plan with the bona fide intention and expectation that it will be able to make 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. 13.4 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. 13.5 In the event of a termination or partial termination of the Plan, all Participants shall have a fully vested and nonforfeitable interest in their Accrued Benefit. . Page 27--RETIREMENT PLAN Attachment 1..29 13.6 Notwithstanding any other provIsion in this Plan, the benefits provided by the Employer's contributions for Participants whose anticipated annual . benefit provided by such contribution will exceed One Thousand Five Hundred Dollars ($1,500), but applicable only to the twenty-five (25) highest paid employees as of the time of the establishment of this Plan (including any such highest paid Employees who are not Participants at that time, but may later become Participants) shall be subject to the following conditions: a. Benefits shall be paid in full which have been provided by the Employer's contributions not exceeding the larger of the following amounts: (1) Twenty Thousand Dollars ($20,000); or (2) an amount equal to twenty percent (20%) of the first Fifty Thousand Dollars ($50,000) of the Participant's average regular annual compensation multiplied by the number of years between the date of the establishment of this Plan and (i) the date that the Plan terminates, or (ij) if benefits become payable to a Participant described in this paragraph within ten (10) years after the date of the' establishment of this Plan, the date the benefits of such Participant first became payable (if before the date of the termination of this Plan), or (iii) if benefits become payable to a Participant described in this paragraph after the Plan has been in effect for ten (10) years if the full current costs of the Plan for the first ten (10) years have not been met or the full current costs have not been met on the date referred to in (i) and (ii) above, the date of the failure to meet the full current costs. b. If (1), this Plan is terminated within ten (10) years after the establishment of this Plan, or (2), the benefits of any of the Participants described in Section 13.6 become payable within ten (10) years after the establishment of this Plan or (3), the benefits of any of the Participants described in Section 13.6 above become payable after this Plan has been in effect for ten (10) years and, at the time such benefits become payable, the full current costs for the first ten (10) years have not been met, the benefits which any of the Participants described in Section 13.6 may receive from the Employer's contributions shall not exceed the benefits set forth in Section 13.6 a. above. This limitation shall cease to be effective at such time, at or after the expiration of ten (10) years from the date of the establishment of this Plan, as the full current costs of the Plan have first been met. . c. If a Participant to whom this Section 13.6 applies leaves the employ of the Employer or withdraws from participation in this Plan, the benefits which the Participant may receive from the Employer's contributions shall not at any time, within the first ten (10) years after the date of the establishment of this Plan, exceed the benefits set forth in Section 13.6 a. above. If, at the end of ten (10) years after the date of the establishment of this Plan, the full current costs of the first ten (10) years have not been met, the benefits such Participant may receive from Employer's contributions shall not exceed the benefits set forth in Section 13.6 a. above until the first time the full current costs of this Plan have been met. Page 28--RETIREMENT PLAN . Attachment 1-30 . . . d. The conditions set forth in this Section 13.6 above shall not restrict the full payment of any death or survivor's benefits on behalf of a Participant who dies while this Plan is in full effect and its full current cost has been met. e. The conditions set forth in this Section 13.6 above shall not restrict the payment in annuity form called for by this Plan for any retired Participant while this Plan is in full effect and its full current costs have been me!. f. In the event of termination of this Plan within the period described in Section 13.6 b. above, distributions to the unretired Participants, other than the Participants described in this Section 13.6 shall include an equitable apportionment among such other Participants of all excess benefits purchased by Employer contributions for the Participants described in this Section 13.6 in the following manner to each such Participant in the ratio that the current actuarial benefit then attributable to him bears to the total current actuarial benefits for all Participants under this Plan, or such other apportionment that shall also be uniform and non-discriminatory. g. Notwithstanding any other provisions of the Plan, if this Plan is amended and on or before ten (10) years from the effective date of such amendment the Plan is terminated, the pension benefits for any Participant who is a highly compensated employee of the Employer as of the effective date of such amendment and whose pension benefits would exceed One Thousand Five Hundred ($1,500) per year, or its 'actuarial equivalent under the provisions of the Plan as amended shall not exceed the larger of the following amounts or their actuarial equivalent: (1) Twenty Thousand Dollars ($20,000); (2) the pension benefits which would have been provided under the Plan as it existed on the day preceding such amendment, if such Plan had been terminated on that date, plus an amount computed by multiplying the number of years for which current costs of the Plan after the effective date of such amendment are met by either (i) Twenty percent (20%) of the Participant's annual compensation, or (ii) Ten Thousand Dollars ($10,000), whichever is smaller; or (3) the pension benefits provided by the Plan as it existed on the day preceding the effective date of such amendment, if such Plan had continued without cl]ange. h. If at any time prior to ten (10) years from the effective date of such amendment the contributions by the Employer under the Plan are insufficient to meet the full current cost of the Plan, the amount used to pay pension benefits under the Plan for any Participant or former Participant who is among the twenty-five (25) most highly paid employees of the Employer as of the effective date of such amendment shall not exceed the amount which could have been used to pay such benefits if the Plan had been terminated at such time. This restriction shall continue until such time as Employer contributions shall be, sufficient to meet the full current cost of the Plan. For the purpose of this subparagraph, the full current cost of the Plan shall be deemed to have been met if the Employer contributions are sufficient to Page 29--RETIREMENT PLAN Attachment 1-31 cover the normal cost of the Plan plus interest on the unfunded cost of benefits attributable to service prior to the effective date of such amendment or if the assets of the Plan at market value are sufficient to cover the cost of benefits attributable to service prior to the time this Section would otherwise come into effect. i. Despite any other provision in this Section 13.6, in the event that any of the restrictions contained in this Section 13.6 become operative because of the retirement or termination of a Participant, but not because of the termination of the Plan, the Plan Administrator may make payments to a Participant as if this Section did not exist provided that adequate security in the opinion of the Plan Administrator is obtained from the Participant to repay such excess payments if such Plan is terminated prior to ten (10) years from the effective date of such amendment. In addition, the above limitations shall not be deemed to restrict the payment of full benefits under this Plan while the Plan remains in effect and its full current costs have been met provided such current costs continue to be met. j. This Section 13.6 is included in this Agreement to conform to the requirements of Treasury Regulation Section 1.401-4(c) or any substitute th~refore and shall apply until such regulations are no longer effective and applicable. Page 30--RETIREMENT PLAN Attachment 1-32 . . . . . . SECTION 14 CLAIMS PROCEDURE 14.1 Upon the request of a Participant or ben_eficiary, or by action of the Plan Administrator, the Plan Administrator shall provide claim forms to any Participant or his beneficiary wlio becomes entitled to benefits hereunder 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, if any, 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. 14.2 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 comments must be submitted in writing to the Plan Administrator. Such issues and comments 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 reviewl 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 31--RETIREMENT PLAN Attachment 1-33 SECTION 15 VOLUNTARY CONTRIBUTIONS . 15.1 Any Participant may make contributions to the Plan, provided, however, that the aggregate contributions of a Participant for any month shall not exceed 10% of the Participant's Monthly Earnings for such month. Such contributions shall be allocated to the Participant's Voluntary Contribution Account. 15.2 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 11, a Participant may withdraw, by submitting written notice to the Plan Administrator, the lesser of the amount in Participant's Voluntary Contribution Account or the total of the Participant's contributions. The Plan Administrator shall distribute the Voluntary Contribution Account to the Participant within thirty (30) days after receipt of the written notice. ,15.3 Such voluntary contribution shall become immediately fully vested and shall not be forfeited under any circumstances. Contributions to the Plan made by a Participant shall be forthwith credited to the Participant's Voluntary Contribution Account. Except as herein modified, voluntary contributions of Participants shall be subject to the terms and provisions of this Plan, shall be administered in the same manner as other Plan assets, and shall not restrict the operation of the Plan as if it were a single fund. . Page 32--RETIREMENT PLAN . Attachment 1-34 . . . SECTION 16 MISCELLANEOUS 16.1 The adoption and maintena_nce of the Plan shall not be deemed to be a contract between the Employer and any Employee. Nothing herein contained shall be deemed to give any Employee the right to be retained in th~ employ of the Employer or to interfere with the right of the Employer to discharge any Employee at any time. Nothing herein contained 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. 16.2 This Plan shall in all respects be construed according to the laws of the State of Oregon, except as modified in Section 16.6. 16.3 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. 16.4 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 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 Policy for the Participant's benefit shall be subject to garnishment, attachment or other 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). 16.5 If any person to whom a benefit is payable hereunder 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. 16.6 The terms of this Plan shall be interpreted and administered in a manner consistent with the requirements of the IRC in order that the Plan may qualify as a qualified Employee Benefit Plan. Page 33--RETIREMENT PLAN Attachment 1-35 16.7 Whenever any words are used herein in the masculine, 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 herein 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. 16.8 Unless otherwise specifically provided herein, 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 herein, 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. 16.9 This Plan may be executed in several counterparts, and each shall be an original without reference to the others. Page 34--RETIREMENT PLAN Attachment 1-36 . . . . . . SECTION 17 INTEGRATION WITH THE OREGON PUBLIC EMPLOYES' RETIREMENT SYSTEM 17.1 Provisions rela~ing to Firefighters and Eligible Firefighters as those terms are defined in Exhibit A are as follows: a. A Firefighter who was not an Eligible Firefighter in the Plan as of June 30, 1991 shall be ineligible to participate in the Plan. Effective July 1, 1991, a Firefighter shall no longer be eligible to accrue any benefits under this Plan, except as provided in this Section 17. b. If an Eligible Firefighter elects to obtain PERS Current Service Credit, the following shall apply: (i) The Eligible Firefighter's Employee Required Contribution Account and Pick-up Account, each determined as of June 30, 1990, shall be transferred to PERS as soon as practicable and as is consistent with Exhibit A. (ii) The Employer shall continue to make contributions to the Pick-up Account under the Plan from July 1, 1990 to the date upon which the Employer begins to transmit such contributions to PERS on a regular basis; such contributions shall be transferred to PERS as soon as practicable and as is consistent with Exhibit A. (iii) The Employer Contribution Account determined as of June 30, 19~0 plus Employer contributions to such account as determined by the Plan's actuary from the period July 1, 1990 up to the date which the City begins to transmit contributions to PERS on a regular basis, calculated under the provisions of this Plan, shall be transferred to PERS as soon as is practicable and as is consistent with Exhibit A. (iv) A portion of the Employer's past service liability reserve applicable to such Eligible Firefighters, determined as of June 30, 1991 by the Plan's actuary, shall be transferred to PERS as soon as is practicable and as is consistent with Exhibit A. (v) All such accounts shall be credited with earnings thereon through June 30, 1991 at rates provided for herein and shall be credited with earnings subsequent to such date until the date on which assets are received by PERS in an amount to be calculated by the actuary for the Plan and as is consistent with Exhibit A. Page 35--RETIREMENT PLAN Attachment 1-37 c. If an Eligible Firefighter elects not to obtain PERS Current Service Credit the following shall apply: . (i) The Eligible Firefighter's Pick-up Account attributable to contributions from July 1, 1990 up the date which the Employer begins to transmit contributions to PERS on a regular basis shall be transferred to PERS as soon as practicable and as is consistent with Exhibit A. (ii) Employer Contributions to the Employer Contribution Account as determined by the Plan's actuary for the period from July 1, 1990 up to the date upon which the Employer begins to transmit contributions to PERS on a regular basis, calculated under the provisions of this Plan, shall be transferred to PERS as soon as practicable and as is consistent with Exhibit A. (iii) A portion of the Employer's past service liability reserve applicable to such Eligible Firefighters, determined as of June 30, 1991 by the Plan's actuary, shall be transferred to PERS as soon as is practicable and is consistent with Exhibit A. (iv) All such accounts shall be credited with earnings thereon through June 30, 1991 at rates provided for herein and shall be credited with earnings subsequent to such date until the date on which assets are received by PERS in an amount to be calculated by the actuary for the Plan and as is consistent with Exhibit A. . 17.2 Provisions relating to Management Employees and Eligible Management Employees as those terms are defined in Exhibit B are as follows: a. A Management Employee who was not an Eligible Management Employee in the Plan as of June 3D, 1991 shall be ineligible to participate in the Plan. Effective July 1, 1991 a Management Employee shall no longer be eligible to accrue any benefits under this Plan, except as provided in this Section 17. b. If an Eligible Management Employee elects to obtain PERS Current Service credit, the following shall apply. (i) The Eligible Management Employee's Employee Required Contribution Account and Pick-up Account, each determined as of June 30, 1990, shall be transferred to PERS as soon as I practicable and as is consistent with Exhibit B. (ii) The Employer shall continue to make contributions to the Pick-up Account under the Plan from July 1, 1990 to the date upon which the Employer begins to transmit such contributions to PERS on a regular basis, such Page 36--RETIREMENT PLAN . Attachment 1-38 contributions shall be transferred to PERS as soon as practicable and as is consistent . with Exhibit B. (iii) The Employer Contribution Account determined as of June 30, 1990 plus Employer contributions to such account as determined by the Plan's actuary from the period July 1, 1990 up to the date which the City begins to transmit contributions to PERS on a regular basis, calculated under the provisions of this Plan, shall be transferred to PERS as soon as is practicable and as is consistent with Exhibit B. (iv) A portion of the Employer's past service liability reserve applicable to such Eligible Management Employees determined as of June 30, 1991 shall be transferred to PERS as soon as is practicable and as is consistent with Exhibit B. (v) All such accounts shall be credited with earnings thereon through June 30, 1991 at rates provided for herein and shall be credited with earnings subsequent to such date until the date on which assets are received by PERS in an amount to be calculated by the actuary for the Plan and as is consistent with Exhibit, B. . c. If an Eligible Management Employee elects not to obtain PERS Current Service Credit the following shall apply: (i) The Eligible Management Employee's Pick-up Account attributable to contributions from July 1, 1990 up the date which the Employer begins to transmit contributions to PERS on a regular basis shall be transferred to PERS as soon as practicable and as is consistent with Exhibit B. (ii) Employer Contributions to the Employer Contribution Account as determined by the Plan's actuary for the period from July 1, 1990 up to the date upon which the Employer begins to transmit contributions to PERS on a regular basis, cal~ulated under the provisions of this Plan, shall be transferred to PERS as soon as practicable and is consistent with Exhibit B. (iii) A portion of the Employer's past service liability reserve applicable to such Eligible Management Employees, determined as of June 30, 1991 by the Plan's actuary, shall be transferred to PERS as soon as is practicable and is consistent with Exhibit B. (iv) All such accounts shall be credited with earnings thereon through June 30, 1991 at rates provided for herein and shall be credited with earnings subsequent to such date until the date on which assets are received by PERS in an . Page 37--RETIREMENT PLAN Attachment 1-39 amount to be calculated by the actuary for the Plan and as is consistent with Exhibit B. . . Page 38.,.-RETIREMENT PLAN . Attachment 1-40 . . . SECTION 18 TRANSFER TO MONEY PURCHASE PENSION PLAN 18.1 The Transfer Date is a convenient date selected by the Plan Administrator that is as soon as administratively feasible after receipt of the Internal Revenue Service's approval of this Section 18, but no earlier than June 30, 1995. The following shall occur as of the Transfer Date: a. The amount of the reserve fund specified in Section 7.4 as of June 30, 1995 shall be divided between the Transfer Group and the Remaining Group in proportion to the aggregate Accrued Benefit of each such group as of June 30, 1995. Terms used in this Section 18.1 a. are defined in Section 18.2. b. The portion of the reserve fund divided as provided in Section 18.1 a. for the Transfer Group shall be reduced by the amount required to credit to the accounts of members of such group the applicable minimum credited rates of return specified in Section 7.3 for the period July 1, 1995 through the Transfer Date, after first funding such crediting with such group's share of earnings under the Policy for the period July 1, 1995 through the Transfer Date. The amount required to so credit such accounts and such group's share of earnings under the Policy shall be determined in the discretion of the Plan Administrator and by determining the membership of such group on any day during the period July 1, 1995 through the Transfer Date as provided in Section 18.2 but by substituting such day for "June 30, 1995". c. The portion of the reserve fund divided for the Transfer Group as provided in Section 18.1 a., but as reduced under Section 18.1 b., shall be further divided among the members of such group (determining such group as of the Transfer Date) who are Employees of the Employer on June 30, 1995 in proportion to each such _member's months of participation in the Plan as of June 30, 1995. The portion of the reserve fund so divided for each such member shall be allocated to such member's Pick-up Account as additional past service credit. For this purpose a month of participation shall be credited to a member for each month for which a contribution is made on behalf of the member pursuant to Section 4.2 a. d. The accounts of members of the Transfer Group shall be credited with the applicable minimum credited rates of return specified in Section 7.3 through the Transfer Date; and the amount of each such account shall then be transferred to the City of Springfield, Oregon Money Purchase Pension Plan and be maintained in accounts thereunder as provided in Section 12.3 of such Plan. For this purpose the Transfer Group shall be determined as provided in Section 18.2 but by substituting Page 39--RETIREMENT PLAN Attachment 1-41 "the Transfer Date" for "June 30, 1995". Upon such transfer such members and their beneficiaries shall have no further rights under this Plan. . 18.2 "The amount of the reserve fund specified in Section 7.4 as of June 30, 1995" shall be the estimate thereof determined in the discretion of the Plan Administrator and as if the applicable minimum credited rates of return specified in Section 7.3 were credited to accounts through June 30, 1995. "The Remaining Group" comprises all persons in any of the following groups as of June 30, 1995: a. Public Safety Employees. b. Employees in the collective bargaining unit represented by Springfield Police Association. c. City Attorney and Assistant City Attorneys. d. Former Employees who immediately before Severance of, Employment were in any of the preceding groups. e. Beneficiaries of deceased Participants who immediately before death were in any of the preceding groups. f. Alternate payees under qualified domestic relations orders with respect to Participants who on the date of such order were in any of the preceding groups. . g. Employees and former Employees not in any of the preceding groups whose date of Disability is before July 1, 1995. "The Transfer Group" comprises each person with an account in the Plan as of June 30, 1995 who is not in the Remaining Group. "The aggregate Accrued Benefit of each such group as of June 30, 1995" shall be determined in the discretion of the Plan Administrator and as if the applicable minimum credited rates of return specified in Section 7.3 were credited to accounts Page 40--RETIREMENT PLAN . Attachment 1-42 . . . through June 30, 1995 and shall be the sum of the Accrued Benefit as of June 30, 1995 of each member of such group. DATED this _ day of , 1995. EMPLOYER: CITY OF SPRINGFIELD, OREGON By: City Manager Page 41--RETIREMENT PLAN Attachment 1-43 . TIllS CONTRACf is made between the PUBLIC EMPLOYES RETIREMENT BOARD (hereinafter referred to as the Board) on behalf of the PUBLIC EMPLOYES RETIREMENT SYSTEM (hereinafter referred to as PERS) and the CITY OF SPRINGFIELD (hereinafter referred to as the City), for the purpose of integrating the City"of Springfield, Oregon, Retirement Plan (hereinafter referred to as the City's Plan), as maintained on behalf of the City's firefighters represented by the International Association of Firefighters Local #1395 (hereinafterreferred to as the Firefighters), into PERS pursuant to the provisions of ORS 237.051. The City's Plan is also a party to this contract. This contract is effective July 1, 1991, but shall have no effect until: (1) No less than t\yo-thirds of the current Firefighters who participate in the City's Plan have duly approved said integration pursuant to ORS 237.051. Two-thirds of the current Firefighters did approve such integration on June 16, 1991. (2) The contract has been approved by the City, the City's Plan and by the Board. lliEREFORE, the parties agree t,hat: . (1) Definitions for purposes of this contract: (a) Firefighter means any person employed by the City whose duties involve fire fighting, and who is represented by the International Association of Firefighters Local #1395. (b) Eligible Firefighter means a Firefighter who was an active participant in the City's Plan as of June 30, 1991. (c) Current Service is the number of years of membership as used for purposes of retirement allowance calculation in ORS 237.147. Current Service, as used in this contract, will also be used to determine employe eligibility for benefits under ORS 237.011,237.109,237.111,237.121,237.153,237,171, and 237.248. (d) Probationary Period is the time worked by a Firefighter with the City prior to becoming a participant in the City's Plan or any predecessor plan. . ors:J:913003 Paec J EXH 1 P fT ^ Attachment 1-44 . (2) Effective July I, 1991 the City ',l,'ill begin participation in PERS for all Eligible Firefighters. To the extent described in this contract, Eligible Firefighters shall be covered by and begin participation in PERS and shall have all rights, benefits, and obligations provided by O?-S 237.001, through ORS 237.320 and of ORS 237.610 through ORS 237.640. A Firefighter who was an active employe but was not an active participant in the City's Plan as ot June 30, 1991, shall become a member of PERS pursuant to the provisions of ORS 237.011. A former employe who was a Firefighter but was not an active participant in the City's Plan as of June 30, 1991, shall not become a member of PERS due to the provisions of this con tract. A Firefighter who becomes a memqer of PERS because of the provisions of this contract will continue to be a member of PERS during continued employment with the City, in a management position. (3) For an Eligible Firefighter, Current Service under PERS shall include all years and months of service beginning July I, 1990. . For a Firefighter who was not an active participant in the City's Plan as of the Effective Date of this contract, Current Service under PERS shall commence on the date of PERS membership pursuant to ORS 237.011. (4) An Eligible Firefighter may elect to obtain PERS Current Service credit for the number of years and months of participation in the City's Plan prior to July I, 1990, from the later of May I, 1963, or the date of participation in the City's Plan or any predecessor plan. If an Eligible Firefighter makes such an election, the Employee Required Contribution Account and the Pid,"Up Account, as defined in the City's Plan, shall be paid to PERS by the City's Plan and credited to the employee pursuant to ORS 237.001 through ORS 237.320, and ORS 237.610 through ORS 237.640. . An Eligible Firefighter making such an election shall, by his or her election, permanently and irrevocably waive all rights to the Employer Contribution Account, as defined in the City's Plan. The Employer Contribution Account shall be paid to PERS by the City's Plan and treated as an employer contribution to PERS pursuant to ORS 237.001 through ORS 237.320, and ORS 237.610 through ORS 237.640. . I All Eligible Firefighters shall be notified of the proposed integration and of their right to elect to obtain PERS Current Service credit for service prior to July I, 1990. Such election shall be made in writing to the City, in a manner prescribed by the Ciry. The City shall ors:]:913003 P:lf'C '2 Attachment 1-45 offer Eligible Firefighters such election within 30 days after the date on which this contract . is signed by all parties. Eligible Firefighters must file their election with the City within 30 days after its receipt. An Eligible Firefighter who fails to file an election within the prescribed time limits shall be considered to have elected not to obtain Current Service credit for periods prior to July) 1990. The City agrees that it shall make reasonable efforts to inform Eligible Firefighters of the provisions of this contract. (5) Eligible Firefighters making the election described in Section (4) may apply for Current Service credit for the Probationary Period as described in ORS 237.117 if the Firefighter meets the qualifications described in that statute. For purposes of applying ORS 237.117, the employe rate shall be considered to be 6.00% of subject salary, and the employer rate shall be considered to be the rate specified in Section (15) of this contract. (6) Eligible Firefighters who were enrolled in the City's Plan, or any predecessor plan on May I, 1963, and who elect to make the transfer described in Section (4) of this contract, shall be entitled to a prior service benefit as described in ORS 237.081 for periods of emplo)'T.!1ent with the City before May I, 1963, to a maximum of 20 such years. . (7) Eligible Firefighters who do not elect to make the transfer described in Section (4) of this contract, shall be entitled to service credit under PERS for the years and months of participation in the City's Plan, or any predecessor plan, only for purposes of ORS 237.011, 237.109,237.111,237.121,237.171, and 237.248. (8) Nothing in this contract nor any action taken under this contract shall reduce or impair the benefits which former employes of the City, who left City employment as Firefighters and who are currently receiving benefits from the City's Plan, would have' received had the integration not been effected. (9) Fonner employes receiving retirement benefits from the City's Plan shall continue to receive benefits from the City's Plan. Any benefits due to former employes from the City's Plan as of June 30, 1991 shall remain the liability of the City's Plan. . ()r~'l.Q I,M, P,,,,. "' Attachment 1-46 , .' (10) The City will extend the use of accumulated unused sick leave to increase benefits, effective January 1, 1993, in accordance with ORS 237.153 for those persons receiving a benefit under ORS 237.001 through ORS 237.320. The maximum accumulation of eight hours per month worked under ORS 237.153(2)(a) shall be computed considering only tbose months for which the Firefighter has been granted PERS prior and/or Current Service credit. (11) The Board has caused a financial and actuarial investigation of this integration to be made, the cost of which has been borne by the City. Such investigation detennined the actuarial present value of projected benefits of current employes and of accrued benefits for former employes who have terminated with a vested interest, current assets, and any unfunded actuarial liability of the previous plan. (12) The City will furnish PERS with payroll and personnel information to establish salary history, years of service, member account balances, and other such information deemed to be necessary by the Board to integrate the City's Plan into PERS, within 150 after the date on which this contract is signed. . (13) . The City agrees that it is solely responsible to inform all Firefighters of the integration. PERS accepts no responsibility for any liability that arises from the City's failure to Worm Firefighters of the integration. PERS accepts no liability due to claims made by Firefighters who retired prior to June 30, 1991, and who were represented by the International Association of firefighters Local #1395. PERS accepts no liability due to claims by Firefighters who terminated employment with the City prior toJune 30, 1991, and who were represented by the International A.ssociation of Firefighters Local # 1395 at the time of tennination from City employment, and who are due future benefits from the City's Plan. (14) The City's Plan will transfer assets in one or more payments to the City's employer account in PERS not later than the later of 30 days after receipt of the favorable Internal Revenue Service determination letter as described in Section (16), or June 30, 1993. The amount of the transfer will equal the sum of the following accounts for all Eligible Firefighters: . (a) Employee Required Contribution Account as of June 30, 1990, if the Eligible Firefighter makes the election in Section (4), ' ~~r,I,n , ''lfV\, n.. ^" ,~ Attachment 147 (b) Pick-up Contribution Account as of June 30, 1990, if the Eligible Firefighter . makes the election in Section (4), (c) Pick-up Contribu tions for all Eligible Firefighters for the period from July I, 1990 up to the date upon which the City begins to transmit contributions to PERS on a regular basis, (d) Employer Contribution Account as of June 30, 1990, if the Eligible Firefighter makes the election in Section (4), (e) Employer deposits to the Employer Contribution Account as determined by the City's actuary for the 'period from July 1, 1990 up to the date upon which the City begins to transmit contributions to PERS on a regular basis, calculated under the provisions of the City's Plan, (f) The portion of the City's Past Service Liability Reserve as of June 30, 1991, determined for Eligible Firefighters, and (g) Interest on all accounts and contributions through June 30, 1991 at rates adopted for the City's Plan. The members' individual accounts will be established as of the date the City begins to . transmit contributions to PERS on a regular basis. The funds to establish the PERS member accounts will be transferred from the City's employer account in PERS. The City's actuary will perform all of the aforementioned calculations to determine the account balances and sJ-Jpply a complete documentation to the City. The City's Plan agrees that it will assume the liability for required interest credited to PERS member accounts from July I, 1991 until the date on which assets are received by PERS. In accordance with ORS 237.271 through 237.28~, such interest will be credited at the rate that PERS actually distributes to PERS member accounts, guaranteed as a minimum rate of 8% per annum. Such amounts will be transferred from the City's employer account to the individual PERS member accounts. PERS will distribute interest to the PERS employer account on assets paid to PERS by the City's Plan in proportion to the number of days the assets are held by PERS. The transfer of assets described in this section is in addition to the obligation of the City to make employer contributions under ORS 237.081 after the asset transfer is completed. . ors:J:9J3003 P,l\!C 5 Attachment 1-48 . (15) The initial employer contribution rate pursuant to ORS 237.081 will be 14.11 % of the members' total gross salary as defined in ORS 237.003 and ORS 237.075. The City's employer contribution rate may be revised to reflect the transfer of assets to PERS as determned by the Board's actuary in accordance with employe elections made und~~ Section (4) of this contract. (16) The City agrees to request a detennination by the Internal Revenue Service within 90 days after the date on which this contract is signed regarding the effect on PERS and the City's Plan qualifications of having employees elect to transfer their accounts as described in Section (4) of this contract, and the effect of the permanent waivers of all rights to the Employer Contributio!l Account. If the Internal Revenue Service determines that such transfers and waivers do not disqualify PERS or the City's Plan, all provisions of this contract shall be in effect as of the Effective Date. If the Internal Revenue Service determines th~t such transfers and waivers do disqualify PERS or the City's Plan, this contract shall be null and void. . If this contract is held to be null and void, Firefighters shall become members of PERS as of July 1, 1990, as provided in ORS 237.620. Such membership shall automatically be effective on tbe 6th working day following receipt by the Board of the Internal Revenue Service determination of invalidity. #-t~e Oregon P-~bli~-E~;;o~~s Retirement System -----13ia--}Jj~A-- for the City of Springfield I [!)I-.Cj~ ~-~te -L~_Z~_~ Date C~~l ---------- ------------------~------------- for the City of Springfield, Oregon Retire~t Pl n &~~~;;i~~~~-R~;i~ement System /--1'- 1'b1- --------------- Date . ..!.~ I.~ :,.fz. Date 1'lr~'1' q 11()()'l, p~ Of. () Attachment 1-49 . TIUS CONTRACT is made between the PUBLIC EMPLOYES RETIREMENT BOARD (hereinafter referred to as the Board) on behalf of the PUBLIC EMPLOYES RE1'1REMENT SYSTEM (hereinafter referred to as PERS) and the CITY OF SPRJNGFIELD (hereinafter referred to as the City), for the purpose of integrating the City of Springfield, Oregon, Retirement Plan (hereinafter referred to as the Cit)"s Plan), as maintained on behalf of the City's firefighter employes who are classified by the City as management employes (hereinafter referred to as the Management Employes), into PERS pursuant to the provisions of ORS 237.051. The City's Plan is also a party to this contract. This contract is effective July 1, 1991, but shall have noeffect until: (i) , No less than tv.'o-thirds of the current l\1anagement Employes who participate in the City's Plan have duly approved said integration pursuant to ORS 237.051. Two- thirds of the current firefighter Management Employes did approve such integration on November 27, 1991. (2) The, contract has been approved by the City, the City's Plan and by the Board. . TIIEREFORE, the parties agree that: (1) Definitions for purposes of this contract (a) Management Employe means any person employed by the City whose duties involve fir:efighting, and who is classified as a management employe as of June 30, 1991. - (b) Eligiblc Management Employc means a Management Employe who was an active participant in the City's Plan as of June 30, 1991. (c) Current Service is the number of years of membership as used for purposes of retirement allowance calculation in ORS 237.147. Current Service, as used in this contract, will also be used to determine employe eligibility for benefits under ORS 237.011,237.109,237.111,237.121,237.153,237.171, and 237.248: (d) Probationary Period is the time worked by a Management Employe v.~th the City prior to becoming a participant in the City's Plan or any predecessor plan. . "r<.1.011.Mtl P"np;EXH1BIT B Attachment 1-50 . . , 0 (2) Effective July 1, 1991 the City will begin participation in PERS for all eligible Management Employes. To the extent described in this contract, Eligible Management Employes shall be covered by and begin participation in PERS and shall have all rights, benefits, and obligations provided by ORS 237.001 through ORS 237.320 and of ORS 237:610 through ORS 237.640. A Management Employe who was an active employe but was not an active participant in the City's Plan as of June 30, 1991, shall become a member of PERS pursuant to the provisions of ORS 237.011. A former employe who was a Management Employe but was not an active participant in the City's Plan as of June 30, 1991, shall not become a member of PERS due to the provisions of this contract. (3) For an Eligible Management Employe, Current Service under PERS shall include all years and months of service beginning July 1, 1990. For a Management Employe who was not an active participant in tbe City's Plan as of tbe Effective Date of this contract, Current Service under PERS shall commence on the date of PERS membership pursuant to ORS 237.01 i. (4) , An Eligible Management Employe may elect to obtain PERS Current Service credit for the number of years and months of participation in the City's Plan prior to July 1, 1990, from the later of May 1, 1963, or the date of participation in the City's Plan or any predecessor plan. If an Eligible Management Employe makes such an election, the Employee Required Contribution Account and the Pick.Llp Account, as defined in the City's Plan, shall be paid 10 PERS by the City's Plan and credited to the employee pursuant to ORS 237.001 through ORS 237.320, and ORS 237.610 through ORS 237.640. An Eligible Management Employe making such an election shall, by his or her election, permanently and irrevocably waive all rights to the Employer Contribution Account, as defined in the City's Plan. The Employer Contribution Account shall be paid to PERS by the City's Plan and treated as an employer contribution to PERS pursuant to ORS 237.001 through ORS 237.320, and ORS 237.610 through ORS 237.640. All Eligible Management Employes shall be notified of the proposed integration and of their right to elect to obtain PERS Current Service credit for service prior to July 1, 1990. Such election shall be made in writing to the City, in a manner prescribed by the City. The . City shall offer Eligible Management Employes s.uch election within 30 days after the date " r< . 1. 0 , ,()()j Attachment 1-51 P~"t> ? on which this contract is signed by all parties. Eligible Management Employes must file . their election with the City v,1thin 30 days after its receipt. An Eligible Management Employe who fails to file an election within ~he prescribed time limits shall be considered to have elected not to obtain Current Service credit for periods prior.to July,11990. The City agrees that it shall make reasonable efforts to inform Eligible Management Employes of the provisions of this contract. (5) Eligible Management Employes making the election described in Section (4) may apply for Current Service credit for the Probationary Period as described in ORS 237.117 if the Management Employe meets the qualifications described in that statute. For purposes of applying ORS 237.117, the employe rate shall be considered to be 6.00% of subject salary, and the employer rate shall be considered to be the rate specified in Section (15) of this contract. (6) Eligible Management Employes who were enrolled in the City's Plan, or any predecessor plan on May I, 1963, and who elect to make the transfer described in Section (4) of this contract, shall be entitled to a prior service benefit as described in ORS 237.081 for periods of employment with the City before May 1, 1963, to a maximum of 20 such . years. (7) Eligible Management Employes who do not elect to make the transfer described in section (4) of this contract, shall be entitled to service credit under PERS for the years and months of participation in the City's Plan, or any predecessor plan, only for purposes of ORS 237.011,237.109,237.111,237.121,237.171, and 237.248. (8) Nothing in this contract nor any action taken under this contract shall reduce or impair the benefits which former employes of the City, who left City employment as Management Employes and who are currently receiving benefits from the City's Plan, would have received had the integration not been effected. (9) Former employes receiving retirement benefits from the City's Plan shall continue to receive benefits from the City's Plan. Any benefits due to former employes from the City's Plan as of June 30, 1991 shall remain the liability of the City's Plan. . Attachment 1-52 . (10)' The City will extend the use of accumulated unused sick leave to increase benefits, effective January 1,1993, in accordance with ORS 237.153 for those persons receiving a benefits under ORS 237.001 through ORS 237.320. The maximum accumulation of eight hours per month worked under ORS 237.153(2)(a) shall be computed considering only those months for which the Management Employe has been granted PERS prior and/or Current Service credit. (11) The Board has caused a financial and actuarial investigation of this integration to be made, the cost of which has been borne by the City. Such investigation determined the actuarial present value of projected benefits of current employes and of accrued benefits for fanner employes who have terminated with a vested interest, current assets, and any unfunded actuarial liability of the previous plan. (12) The City will furnish PERS with payroll and personnel information to establish salary history, years of service, member account balances, and other such information deemed tobe necessary by the Board to integrate the City's Plan into PERS, within 150 after the date on which this contract is signed. . (13) The City agrees that it is solely responsible to inform all :Management Employes of the integration. PERS accepts no responsibility for any liability that arises from the City's failure to inform Management Employes of the integration. PERS accepts no liability due to claims made by Management Employes who retired prior to June 30, 1991. PERS accepts no liabilit)' due to claims by Management Employes who terminated from employment with the City prior to June 30, 1991, and who are due future - benefits from the City's Plan. (14) The City's Plan will transfer assets in one or more payments to the City's employer account in PERS not later than the later of 30 days after receipt of the favorable Internal Revenue SerVice determination letter as described in Section (16), or June 30, 1993. The amount of the transfer will equal the sum of the following accounts for all Eligible Management Employes: (a) Employee Required Contribution Account as of June 30, 1990, if the Eligible Management Employe makes the election in Section (4), . (b) Pick-up Contribution Account as of June 30, 1990, if the Eligible Management Employe makes the election in Section (4), - ._., "'....,...,... I 'P"'L . _ ~ Attachment 1-53 '(c) Pick-up Contributions for all Eligible Management Employes for the period . from July I, 1990 up to the date upon which the City begins to transmit contributions to PERS on a regular basis, (d) Employer Contribution Account as of June 30, 1990, if the Eligible " Management Employe makes the election in Section (4), (e) Employer deposits to the Employer Contribution Account as determined by the City's actuary for the period from July I, 1990 up to the date upon which the City begins to transmit contributions to PERS on a regular basis, calculated under the provisions of the City's Plan, (f) The portion of the City's Past Service Liability Reserve as of June 30, 1991, determined for Eligible Management Employes, and (g) Interest on all accounts and contributions through June 30, 1991 at rates adopted for the City's Plan. The members' individual accounts will be established as of the date the City begins to transmit contributions to PERS on a regular basis. The funds to establish the PERS member accounts will be transferred from the City's employer ;;ccount in PERS. The City's actuary will perform all of the aforementioned calculations to determine the account . balances and supply a complete documentation to the City. The City's Plan agrees that it will assume the liability for required interest credited to, PERS member accounts from July I, 1991 until the date on which assets are received by PERS. In accordance with ORS 237.271 through 237.285, such interest will be credited at the rate that PERS actually distributes to PERS member accounts, guaranteed as a minimum rate of 8% per annum. Such amounts will be transferred from the City's employer account to the individual PERS member accounts. PERS will distribute interest to the PERS employer account on assets paid to PERS by the City's Plan in proportion to the number of days the assets are held by PERS. The transfer of assets described in this section is in addition to the obligation of the City to make employer contributions under ORS 237.081 after the asset transfer is completed. (15) The initial employer contribution rate pursuant to ORS 237.081 will be 14.11 %of the members' total gross salary as defined in ORS 237.003 and ORS 237.075. . M<:;:l,Ql1MJ 'P~ 0" <; Attachment 1-54 . The City's employer contribution rate may be revised (0 reflect the transfer of assets to PERS as determined by the Board's actuary in accordance with employe elections made under Section (4) of this contract. (16).. The City agrees to request a determination by the Internal Revenue Service within 90 days after the date on which this contract is signed regarding the effect on PERS and the City's Plan qualifications of having employees elect to transfer their accounts as described in Section (4) of this contract, and the effect of the permanent waivers of all rights to the Employer Contribution Account. If the Internal Revenue Service determines that such transfers and waivers do not disqualify PERS or the City's Plan, all provisions of this contract shall be in effect as of the Effective Date. If the Internal Revenue Service determines that such transfers and waivers do disqualify PERS or the City's Plan, this contract shall be null and void. . If this contract is held to be null and void, Management Employes who have not waived PERS participation as described in Section (17) sball become members of PERS as of July 1, 1990, as provided in ORS 237.620. Sucb membership shall automatically be effective on tbe 6tb working day following receipt by the Board of tbe Internal Revenue Service determination of invalidity. (17) In lieu of any other rights or benefits under this contract, an Eligible Management Employe may irrevocably elect to waive all rights to participation in PERS, and remain a participant in the City's Plan as amended effective July I, 1990, to meet the standards of determination of ORS 237.620(4)., . ,ft~csJ2 - u' _u ' v?r th~ S~on PUblic;;zmPlov s Retirement System (3{fl/J/;,1- - \.. ., ______________~t'~~~- __ _ _________ . for the City of Springfield t~~--~j~_______ :Il:~ ~,fZ;=t~~,R_elire en Plan for the o~ Public Employes Retirement System !jLL[,(~2- I Date _!~:_~-~~ " Date ), /1., 72z _______t__u___ Date .I.:/'I.~r ~ Date . ors:l:911004 P,. ...> (, Attachment 1-55 U 1, 1; " ".) 1 .. ..).j L1Jl UJ- Sj'j'L!J .~~ C In ,\TTUH\l::l l.iJ 00 1 Post-It'- t;rand fax transmittal memo 7671 TO,j From Co, Dept. Phone Ii SPRINGFIELD NO. 94-91 . Fax # ~ A RESOLUTION OF THE CITY OF SPRINGFIELD, REGARDING CITY PICK-UP OF NONUNION EMPLOYEE SIX PERCENT CONTRIBUTION REQUIREMENT TO EMPLOYEE RETIREMENT PLANS. WHEREAS, certain employees of the city of Springfield, Oregon (the city) are members of the Oregon Public Employes' Retirement system (PERS); and WHEREAS, ORS 237.071 generally requires members of PERS to contribute to PERS six percent of their salary; and ~nEREAS, ORS 237.075 allows the city to agree to pick up the employee contributions required by ORS 237.071 and thereby to make contributions to PERS in lieu of such employee contributions and in addition to employees' compensation; and WHEREAS, the City has agreed to so pick up such employee contributions to PERSi and ~ WnEREAS, the city has established the City of springfield, Oregon Eetirement Plan (the Retirement Plan); and WHEREAS, the city makes pick-up contributions under section 4.2 b. of the Retirement Plan equal to 6% or 7% of actively participating employees' Monthly Earnings and in addition to employees' compensation; and . WHEREAS, the city contemplates establishing the city of springfield, oregon Money Purchase pension Plan (the Pension Plan) and making pick-up contributions thereto equal to 6% or 7% of actively participating employees' Monthly Earnings and in addition to employ.ees' compensation; and WHEREAS, Oregon constitution Article IX, section 10, subsection (1), requires employees of the City who will receive a retirement benefit from PERS, the Retirement Plan, or the Pension Plan to contribute thereto six percent of their salary or gross wage; and ~ ~nEREAS, Oregon constitution Article IX, section 10, subsection (2), allows the city to contract before January 1, 1995 to make contributions to PERS, the Retirement Plan, and the Pension Plan to relieve employees of their obligation to contribute six percent; and WHEREAS, the City desires to contract to make contributions to PERS, the Retirement Plan, and the Pension Plan, in addition to 4It ,employees' compensation, to relieve certain nonrepresented employees of their obligation to contribute six percent of their salary or gross wage earned during the period from December 19, 1994 through June 30, 1996; "-"'\, W ~ r~. P"t'" r"~ t~~./~~. -.' ~ ~ r' ,;/ ~ ~ ~~ .,r Attachment 1-56 '. . .I. . ~! ! ~ J 1\. \ ,.. 1 -tuUU_ 'I . ~' NOW, THEREFORE, be it resolved by City of Springfield that: section 1. Effective December 19, 1994, for compensation earned on or after December 19, 1994 by employees of the city who are not in a collective bargaining unit at the time the compensation is earned: . ~ . '-' (a) On behalf of each employee who is or becomes a member of PERS or a participant in the Retirement Plan or the Pension Plan, the employee contributions required by ORS 237.071 and Oregon Constitution Article IX, section 10, subsection (I), although designated as employee contributions, will be paid by the city to such retirement plan ,of which the employee is a member or participant, in lieu of such contributions by the employee. The employee does not have the option of choosing to receive the contributed amounts directly, and paying the employee contribution directly, instead of having the contributed amounts paid by the city to such retirement plan. Such contributions are deemed to be Jrpicked up" for purposes of Internal Revenue Code 54l4(h) (2) (lIpick-up contributions"). (b) For employees hired or rehired by the city before December 31, 1994, but only while thereafter continuously employed by the City, and only with respect to compensation earned during the period from December 19, 1994 to and including June 30, 1996: (1) Such pick-up contributions shall relieve the employees of the obligations imposed by ORS 237.071 and Oregon Constitution Article IX, section 10, subsection (1). (2) Such pick-up contributions will be made in addition to the employees' compensation, so that each employee's compensation remaining after the pick-up contribution is not reduced as a result of the pick-up contribution. (3) If such pick-up contributions to the Retirement Plan or the Pension Plan exceed the current level of the city's pick-up contributions under section 4.2 b. of the Retirement Plan, such excess shall offset the amounts, if any, required to be contributed by the city under Section 4.2 a. of the Retirement Plan or the comparable section of the Pension Plan. (4) The provisions of subsections (a) and (b) of this section 1. are in consideration of an employee's employment with the City during the remainder of 1994, excluding December 31, 1994, and are part of the employee's contract of employment with the city. Such provisions of this resolution as part of such contract may not be changed except as agreed to by the City and the employee. The city may not terminate the employee, change the employee's status, reduce the employee's hours, or terminate or prevent the employee's membership or participation in PERS, the Retirement Plan, or the Pension Plan, for the purpose of avoiding such provisions of this resolution as part of such contract. Attachment 1-57 ~ ~ ~ ~. ;. ... J. \_ J ...) 1 J 1.J.) ~ " ...... i .1 1 . \! .1 \"J 1'\ _ , I:. .1 ~ UUJ . (5) The city's obligations under this section 1. may be satisfied by pick-up contributions by the City to any retirement system or plan established now or in the future by law, charter, ordinance or resolution and of which the employee is or becomes a member or any system or plan offered now or in the future by-the city and from which the employee will receive a retirement benefit, provided that such pick-up contributions shall be made as otherwise provided in this Section 1. Such pick-up contrib~tions shall be made to a,system or plan other than PERS, the Ret1rement Plan, or the PenS10n Plan only pursuant to an ordinance or resolution by the city. (c) Where subsection (b) of this section 1. does net apply: (1) Such pick-up contributions shall not relieve the employees of the obligations imposed by ORS 237.071 and Oregon Constitution Article IX, section 10, subsection (1). . (2) Such pick-up contributions will be made on a compensation reduction basis, so that each employee's compensation remaining after the pick-up contribution will be as reduced by the amount of the pick-up contribution. . (3) Employees' reported compensation on the W-2 form for tax purposes will be reduced by the amount of such pick-up contributions. (d) During periods for which such pick-up contributions on behalf of an employee are to be made to the Retirement Plan, the Pension Plan, or any other retirement plan other than PERS, for compensation earned by the employee during periods for whiCh contributions on behalf of the employee would not be made under section 4.2 a. of the Retirement Plan (if the employee were participating in the Retirement Plan) because the employee is not a full-time employee within the meaning of the Retirement Plan as it is stated prior to the date of this resolution: (1) Subsection (a) of this section 1. shall apply only to compensation earned by the employee on or after January 1, 1995; and (2) Subsection (b) of this section 1. shall not apply to the employee. (e) During periods for which such pick-up contributions on behalf of an employee are to be made to PERS, for compensation earned by the employee during periods for which 4It contributions by or on behalf of the employee would not be made under ORS 237.071 or ORS 237.075 (as applied on December 7, 1994) Attachment 1-58 . -" '-' . v . v ,. j i j ~ \ j i \ J I" "I. l ~ uu.. .. ,". . ~ because the employee is not "an employee who is an a,ctive member of the system" within the meaning of ORS 237.071 (as applied on December 7, 1994). (1) Subsection (a) of this section 1. shall apply only to compensation earned by the employee on or after January 1, 1995; and (2) Subsection (b) of this section 1. shall not apply to the employee. Section 2. If during any period an employee :has an account or membership in more than one of PERS, the Retirement Plan, the Pension Plan, or other retirement plan offered by the City, the provisions of this resolution other than this section 2. shall apply with respect to compensation earned by the employee during such period by treating the employee as having ~n account or membership in only the plan to which the City makes contributions, other than pick-up contributions, on behalf of the employee for such period or, if the city does not make such contributions for such period, the plan in which the employee has most recently established an account or become a member. Section 3. The city's obligations under this resolution to contribute amounts to PERS, the Retirement Plan, and the Pension Plan shall be limited by the limitations on annual additions provided in Internal Revenue Code ~415 and by the limitation in Internal Revenue Code S401(a) (17) on compensation that may be taken into account under such retirement plans. Any amount the city would be required by this resolution to contribute to such retirement plans except for this Section 3. shall be contributed by the city to another retirement system or plan that is not subject to such requirements of the Internal Revenue Code. Section 4. The Retirement Plan is hereby amended to accept - the contributions required by Oregon constitution Aiticle IX, section 10, subsection (1), and permitted by section 10, subsection (2), thereof; to provide that the pick-up contributions required by this resolution shall not be reduced by amounts forfeited; and to conform to the provisions of this resolution. The part of such contributions not qualifying as pick-up contributions under Internal Revenue Code S414(h) (2) shall be added to an Employee Required contribution Account for each affected employee. The part of such contributions qualifying as pick-up contributions under Internal Revenue Code S414(h) (2) shall be added to a Pick-up Account for each affected employee. Section 5. The city Manager is directed to reflect in the document for the Retirement Plan the amendment to the Retirement Plan made by this resolution and to present such revised document to the Common Council. Attachment 1-59 V 1, 1 I ' ;;;.) 1.j : .);, \..11 ~ UF :)J'J'LV '. H CJ 11 .-\1IUI<.\1:.1 ~ UU5 - .-" . ~ / . v Section 6. This resolution does not affect the Retirement Plan or the Pension Plan with respect to amounts contributed thereto and picked up by the city under Internal Revenue Code S414(h) (2) in excess of the employee contributions required by Oregon Constitution Article IX, section 10, subsection (1), whether such amounts are picked up in addition to compensation or on a compensation reduction basis. section 7. Except as expressly provided in this resolution, nothing in this resolution shall be deemed to give any employee the right to be retained in the employ of the City or to interfere with the right of the city to discharge any employee at any time. section 8. If the requirement of Oregon Constitution Article IX, section 10, subsection (1), that employees contribute six percent of their salary or gross wage is determined in the opinion of counsel for the city or by a court having competent jurisdiction to be invalid as applied to any employee of the city, this resolution shall nevertheless apply for periods prior to such determination as if such requirement were valid. section 9. If any provision of this resolution is held invalid ,for any reason by a court or administrative body having competent jurisdiction, the remaining provisions shall remain . valid and in full force and effect. ~ Adopted by the Common Council and approved by the Mayor of the city of Springfield, Oregon this 19th day of December, 1994. ADOPTED by a vote of 4 for and 1 against. ~LtC\M~At Mayor \ ATTEST: fl,' J ..J!ftLtl /J J:tt:-t, tL.-. city Recorder -. . - ...... .. ", . '.' . . .' f~~.. : "'" - r ;'. ....' . ..... ' " / :~;r:::;,' ~1AJ+VJ~ ~,::;:,:, . ,,_nj~?f '.,_,_ , ........-' , " "\ -{ 'iA~ IOP",!- I ~\'.-,.:.'-/, ; <~,>~~:.:~,;~;~U).".- . ~; Attachment 1-60 . MONEY PURCHASE PENSION PLAN OF . CITY OF SPRINGFIELD, OREGON HERSHNER, HUNTER, MOULTON, ANDREWS & NEILL I . Eugene, Oregon Attachment 2-1 CITY OF SPRINGFIELD, OREGON MONEY PURCHASE PENSION PLAN . Table of Contents Pace SECTION 1 PURPOSE AND EFFECTIVE DATE 1 SECTION 2 DEFINITIONS 2 SECTION 3 ELIGIBILITY AND PARTICIPATION 6 SECTION 4 CONTRIBUTIONS 8 SECTION 5 V ALUA TION OF ACCOUNTS 10 SECTION 6 VESTI N G 13 SECTION 7 LIMIT A TION ON ADDITIONS 14 SECTION 8 MERGER 19 SECTION 9 DISTRIBUTION OF BENEFITS 20 . SECTION 10 ADMINISTRA TION 26 SECTION 11 AMENDMENT AND TERMINATION 29 SECTION 12 ACCEPT ANCE OF ASSETS FROM OTHER PLANS 30 SECTION 13 CLAIMS PROCEDURE 32 SECTION 14 MISCELLANEOUS 33 i--MONEY PURCHASE PENSION PLAN . .,~; ; 'Attachment 2-2 . . . CITY OF SPRINGFIELD, OREGON MONEY PURCHASE PENSION PLAN PARTY: CITY OF SPRINGFIELD, OREGON, an Oregon municipality (Employer) SECTION 1 PURPOSE AND EFFECTIVE DATE 1 .1 The purpose of this Plan is to create a profit sharing plan which is intended to provide certain employees of the Employer with fumds upon their retirement. 1.2 The effective date of this Plan is July 1, 1995. 1.3 This Plan is intended to be a governmental plan as defined in IRC Section 414(d) and pursuant to IRC Section 401 (a)(27)(B) is designated a profit sharing plan. Page 1--MONEY PURCHASE PENSION PLAN Attachment 2-3 SECTION 2 DEFINITIONS 2.1 Accrued Benefit: The balance of all of the Participant's accounts as of the prior Valuation Date plus amounts contributed or transferred to the Plan on behalf of the Participant since the prior Valuation Date and not included in such balance. 2.2 Compensation: Compensation shall mean regular salary and wages of the Participant not including bonuses, overtime pay, or other special allowances or compensation. The annual Compensation of each Participant taken into account under the Plan for any year shall not exceed Two Hundred Thousand Dollars ($200,000), as adjusted by the Secretary of Treasury at the same time and in the same manner as under IRC Section 415(d). In determining the Compensation of a Participant for purposes of this limitation, the rules of IRC Section 414(q) shall apply, except in applying such rules, the term "family" shall include only the spouse of the Participant and any lineal descendants of the Participant who have not attained age nineteen (19) before the close of the year. If, as a result of the application of such rules, the Two Hundred Thousand Dollar ($200,0001 limitation (as adjusted) is exceeded, then the limitation shall be prorated among the affected individuals in proportion to each such individual's Compensation as determined under this Section prior to the application of this limitation. In addition to other applicable limitations set forth in the Plan, and despite any other provision of the Plan, for Plan Years beginning on or after January 1, 1994, the annual compensation of each Employee taken into account under the Plan shall not exceed the OBRA '93 annual compensation limit. The OBRA '93 annual compensation limit is $150,000, as adjusted by the Commissioner for increases in the cost of living in accordance with IRC Section 401 (a)( 17)(B). The cost-of-living adjustment in effect for a calendar year applies to any period, not exceeding twelve (12) months, over which compensation is determined (determination period) beginning in such calendar year. If a determination period consists of fewer than twelve (121 months, the OBRA '93 annual compensation limit will be multiplied by a fraction, the numerator of which is the number of months in the determination period, and the denominator of which is twelve (12). For Plan Years beginning on or after January 1, 1994, any reference in this Plan to the limitation under Section 401 (a)( 171 of the Code shall mean the OBRA '93 annual compensation limit set forth in this provision. If compensation for any prior determination period is taken into account in determining an Employee's benefits accruing in the current Plan Year, the compensation for that prior determination period is subject to the OBRA '93 annual compensation limit in effect for that prior determination period. For this purpose, for determination periods beginning before the Page 2--MONEY PURCHASE PENSION PLAN Attachment 2-4 . . . first day of the first Plan Year beginning on or after January 1, 1994, the OBRA '93 . annual compensation limit is $150,000. 2.3 Disability: A condition of mind or body resulting from illness or injury that permanently and wholly prevents the Participant from performance of any occupation for which,the Participant is reasonably suited by education or training. In dete'rmining whether a Participant is disabled, the Plan Administrator may rely upon the certification of a medical examiner satisfactory to the Employer to the effect that the Participant is permanently disabled. In determining Disability and the administration of this definition, the Employer and the Plan Administrator shall, to the fullest possible extent, afford similar treatment to all Participants who are similarly situated. . . 2.4 Early Retirement Age: Fifty-five (55) years of age, with twenty-five (25) years of service with the City of Springfield. 2.5 Employee: Any employee of the Employer maintaining the Plan or of any other Employer required to be aggregated with such Employer under IRC Section 414(b), (c), (m) or (0) if such other entity has adopted this Plan as a participating employer. Except as provided in Section 3, the term Employee shall , include any leased employee deemed to be an Employee of the Employer described in the preceding sentence, as otherwise provided in IRC Section 414(n) or (0). The term "leased employee" means any person (other than an employee of the recipient) who, pursuant to an agreement between the recipient and any other person ("leasing organization"), has performed services for the recipient (or for the recipient and related persons determined in accordance with such IRC Section 414(n)(6)), on a substantially full-time basis for a period of at least one year, and such services are of a type historically performed by employees in the business field of the recipient employer. Contributions or benefits provided a leased employee by the lea~ing organization which are attributable to services performed for the recipient employer shall be treated as provided by the recipient employer. A leased employee shall not be considered an employee of the recipient if: (i) such employee is covered by a money purchase pension plan providing: (1) a nonintegrated employer contribution rate of at least ten percent (10%) of Compensation, as defined in IRC Section 415(c)(3)', but including amounts contributed by the Employer pursuant to a salary reduction agreement which are excludable from the Employee's gross income under IRC Sections 125, 402(e)(3), 402(h) or 403(b), (2) immediate participation, and (3) full and immediate vesting; and (ii) leased employees do not constitute more than twenty percent (20%) of the recipient's nonhighly compensated work force. 2.6 Employer: CITY OF SPRINGFIELD, OREGON. In addition, for purposes of determining the annual addition limitation contained in Section 7, the term Employer shall mean all employers included in (1) a controlled group of corporations, (2) trades or businesses which are under common control, (3) aftiliated service Page 3--MONEY PURCHASE PENSION PLAN Attachment 2-5 groups, and (4) any other entity required to be aggregated with the Employer pursuant to IRC .Section 414(0), all as defined in IRC Section 414 and regulations issued . thereunder (as modified by IRC Section 415(h) and regulations issued thereunderf. All employees of such entities shall be treated as employed by a single employer for such purposes. 2.7 Employer Contribution Account: The Participant's account a~ described in Section 4.2 a. 2.8 Employment Commencement Date: The first day on which the Employee is employed by the Employer., 2.9 Entry Date: The first day of the month coincident with or next following the date upon which the Employee has met the eligibility requirements of Section 3.1. The Entry Date for any Employee who has satisfied such requirement on July 1, 1995 shall be July 1, 1995. 2.10 IRC: The Internal Revenue Code of 1986, as amended. 2.11 Limitation Year: The Plan Year. 2.12 Monthly Earnings: The Participant's Compensation determined on a monthly basis. 2.13 Normal Retirement Age: Sixty (60) years of age. . 2.14 Participant: Any person who under Section 3 or Section 4.5 is eligible to participate in the Plan and receive contributions hereunder and any person who was so eligible and who has an Accrued Benefit under the Plan. 2.15 Pick-up Account: The Participant's account as described in Section 4.2 b~ or c. 2.16 Plan: The Money Purchase Pension Plan embodied herein. 2.17 Plan Administrator: The Employer named above including any committee established by it to perform the functions of the Plan Administrator hereunder. 2.18 Plan Name: CITY OF SPRINGFIELD, OREGON MONEY PURCHASE PENSION PLAN. 2.19 Plan Year: Each consecutive twelve (12) month period ending on the last day of June. Page 4--MONEY PURCHASE PENSION PLAN . Attachment 2-6 . . . 2.20 Policy: A group retirement policy issued by PaciJic Mutual Life Insurance Company or any other policy purchased by the Employer to hold the amounts in Participants' accounts described in Section 12.3. 2.21 Public Safety Employee: A firefighter or police officer as those terms are defined in Oregon Revised Statutes 237.610. 2.22 Reemployment Commencement Date: The first day on which the Participant is rehired. 2.23 Severance of Employment: Permanent termination of employment for any cause, whether at the request of the Employer or Employee. ' 2.24 Trust: The separate Trust Agreement providing a funding mechanism for the Plan. 2.25 Trustee: The Trustees under the Trust Agreement. 2.26 Valuation Date: The last day of the Plan Year then ending, or any other date determined in the sole discretion of the Plan Administrator. Page 5--MONEY PURCHASE PENSION PLAN Attachment 2-7 SECTION 3 ELIGIBILITY AND PARTICIPATION . 3.1 In order to be initially eligible to participate in th.e Plan, an Employee must have completed six (6) consecutive months of employment with the Employer measured from the Employee's Employment Commencement Date and either be employed full time (as determined in the sole discretion of the Employer) by the Employer or be the Presiding Municipal Court Judge. 3.2 An Employee shall enter the Plan and become a Participant on the Employee's Entry Date. 3.3 The Employer shall notify all Employees who are eligible to participate in the Plan and shall provide or make available to such Employees a form of designation of beneficiary. 3.4 A Participant shall be eligible to receive contributions hereunder only if the Participant remains an Employee. 3.5 Upon Severance of Employment, the Participant shall cease to be eligible to 'receive an allocation of contribution hereunder and the rights of such . Participant or the Participant's beneficiary shall be limited to receive payment from the Participant's Accrued Benefit as hereinafter set forth. 3.6 If a Participant incurs a Severance of Employment and is rehired, such former Participant must once again meet the eligibility requirements of Section 3.1 measured from the former Participant's Reemployment Commencement Date before resuming participation in the Plan. Upon completion of the eligibility requirements of Section 3.1, the Participant shall enter the Plan on the Participant's Entry Date subsequent to the Participant's Reemployment Commel}cement Date. In addition, if a Participant has incurred a Severance of Employment and (a) is rehired and has an Accrued Benefit under the Plan, (b) is reinstated to the Participant's position as a matter of legal right, or (c) is recalled consistent with Employer policies, such Participant shall immediately be eligible to receive an allocation of contribution hereunder as of the date of such rehire, reinstatement, or recall. 3.7 Notwithstanding the above: a. No leased employee, as defined in Section 2, employee included in the collective bargaining unit represented by the Springfield Police Association, Page 6--MONEY PURCHASE PENSION PLAN . Attachment 2-8 . . . Public Safety Employee, City Attorney, or Assistant City Attorney shall be eligible to participate in the Plan. b. No Employee shall be initially eligible to participate in the Plan or to receive contributions hereunder while the employee is an active member (within the . meaning of Oregon Revised Statutes 237.003) of the Oregon Public Employes' Retirement System with respect to the Employee's employment with the Employer. Page 7--MONEY PURCHASE PENSION PLAN Attachment 2-9 SECTION 4 CONTRIBUTIONS . 4.1 This Plan shall be administered on a Plan Year basis. 4.2 The Employer shall cause to be contributed to the Plan on behalf of each Participant each month a sum equal to the following: a. An Employer contribution to be allocated to the Participant's Employer Contribution Account equal to seven' percent (7%) of the Participant's Monthly Earnings for each Participant who is a full-time employee (as determined in the sole discretion of the Employer) and for the Presiding Municipal Court Judge. b. For Participants for whom Section 4.2 a. requires a contribution, an additional Employer contribution to be allocated to the Participant's Pick-up Account based on the Participant's Monthly Earnings as follows: Monthlv EarninQs Contribution Percentage Less than $1,500 Equal to or more than $1,500 6% 7% . c. An additional Employer contribution to be allocated to the Participant's Pick-up Account equal to the excess, if any, of: (i) Six percent of the Participant's monthly salary or gross wage (within the meaning of Oregon Constitution Article IX, Section 10) over (ii) The amount contributed on behalf of the Participant under Section 4.2 b. 4.3 Except as otherwise provided for herein, in no event shall the principal or income of the Plan or Trust be paid to or revert to the Employer or be used for any purpose whatsoever other than for the exclusive benefit of the Participants of the Plan or their beneficiaries. 4.4 No amount forfeited by a Participant as hereinafter provided shall be applied to increase the benefits of any Participant or beneficiary. Amounts so forfeited shall reduce pro tanto the amount of the Employer's contribution next falling due under the provisions of the Plan as provided in Section 4.2 a. to the extent such Employer contributions are not pick-up contributions as provided in Section 4.6 a., and Page 8--MONEY PURCHASE PENSION PLAN . Attachment 2-10 . . . shall be allocated as part of the Employer contribution to be allocated as provided in Section 4.2 a. 4.5 Despite the provisions of Section 3, if a Participant suffers a Disability prior to attaining age sixty (601 the Employer shall continue to make contributions as provided in Section 4.2 a. based on the Monthly Earnings of the Participant as of the date of such Disability. Such contribution shall be made during the period commencing on the date the Employee is determined to have a Disability and terminating on the earlier of: a. The date the Participant attains age sixty (60); or b. The date of the Participant's death; or c. The date the Employee is no longer suffering a Disability. All such contributions shall be allocated to the Employer Contribution Account. 4.6 Section 4.2 is subject to the following: a. Tt'le contributions required by Section 4.2 a. are intended to be pick-up contributions as permitted 'in IRC Section 414(h)(2) to the extent of the excess described in Section 1 .b. (3) of Exhibit A. The contributions required by Section 4:2 b. and c. that are allocated to Pick-up Accounts are intended to be pick-up contributions as permitted in IRC Section 414(h)(2), and are made under a salary reduction arrangement to the extent provided in Exhibit A or in a collective bargaining agreement or to the extent required by Oregon Constitution Article IX, Section 10. b. earned before: Section 4.2 c. does not apply to monthly salary or gross wage (i) July 1, 1997 by Participants who are ,in a collective bargaining unit at the time the monthly salary or gross wage is earned. I (ii) July 1, 1996 by Participants who are not: in a collective bargaining unit at the time the monthly salary or gross wage is earned and who are hired or rehired by the Employer before December 31, 1994, but only while thereafter continuously employed by the Employer and only while Section 4.2 a. requires a contribution with respect to the Participant's Monthly Earnings. Page 9--MONEY PURCHASE PENSION PLAN Attachment 2-11 SECTION 5 VALUATION OF ACCOUNTS . 5.1 As of each Valuation Date, the assets of the Trust shall be valued at the then current fair market value. In the determination of the fair market value of the assets of the Trust, the Plan Administrator shall use customary methods of valuation and sources of information. The Plan Administrator shall incur no liability for any valuation made in good faith. 5.2 As of each Valuation Date, the Policy shall be valued at the then current fair market value. In the determination of the fair market value of the Policy, the Plan Administrator shall use customary methods of valuation and sources of information. The Plan Administrator shall incur no liability for any valuation made in good faith. 5.3 As of each Valuation Date, the Plan Administrator shall allocate to each of the accounts of the Participants, other than the Employer Contribution Account and the accounts described in Section 12.3, the following: a. The net income or net loss of the account accrued or actually realized or'suffered since the last Valuation Date. . b. The unrealized net increase or net decrease in the fair market value of the assets of the account since the last Valuation Date. 5.4 As of each Valuation Date, the Plan Administrator shall allocate among the accounts described in Section 12.3 the following: a. The net income or net loss of the POlicy accrued or actually realized or suffered since the last Valuation Date. b. The unrealized net increase or net decrease in the fair market value of the Policy since the last Valuation Date. This allocation shall be made in the ratio that the balance of each Participant's Employer Contribution Account at the preceding Valuation Date bears to the balance of all Participants' Employer Contribution Accounts (determined in the same manner as for each individual Participant) at the preceding Valuation Date. However, for the first Valuation Date such balances shall be at the first Valuation Date. Page 1 Q--MONEY PURCHASE PENSION PLAN . Attachment 2-12 5.5 As of each Valuation Date, the Plan Administrator shall allocate . among .the Employer Contribution Accounts of the Participants the following: a. The net income or net loss of the Trust accrued or actually realized or suffered since the last Valuation Date and not allocated under Section 5.3 or Section 5.4. . . b. The unrealized net increase or net decrease in the fair market value of the assets of the Trust since the last Valuation Date and not allocated under Section 5.3 or Section 5.4. This allocation shall be made in the ratio that the balance of each Participant's Employer Contribution Account at the preceding Valuation Date bears to the balance of all Participants' Employer Contribution Accounts (determined in the same manner as for each individual Participant) at the preceding Valuation Date. However, for the first Valuation Date such balances shall be at the first Valuation Date. 5.6 As of each Valuation Date the Plan Administrator shall allocate among the accounts of the Participants the expenses of the Plan Administrator and committee since the last Valuation Date and the compensation, expenses, taxes and charges of the Trustee since the last Valuation Date. This allocation shall be made in the ratio that the balance of each Participant's account at the preceding Valuation Date bears to the balance of all Participants' accounts (determined in the same manner as .for each individual Participant) at the preceding Valuation Date. However, for the first Valuation Date such balances shall be at the first Valuation Date. Compensation, expenses, taxes and charges of the Trustee shall be allocated only among accounts other than the accounts described in Section 12.3. Compensation, expenses, taxes and charges that the Plan Administrator determines are attributable to Participants' ability to direct the investment of accounts other than the Employer Contribution Accounts and the accounts described in Section 12.3 shall be allocated only among accounts other than the Employer Contribution Accounts and the accounts described in Section 12.3. Expenses of the Plan Administrator and committee that the Plan Administrator determines are attributable to pccounts other than the accounts described in Section 12.3, or only to the accounts described in Section 12.3, shall be allocated only among such accounts to which the expenses are attributable. ! 5.7 Each Participant shall direct the investment of tMe Participant's accounts, other than the Employer Contribution Account and the accbunts described I in Section 12.3, among the investment alternatives made available by the Plan Administrator to the Participants. Such investment decision shall be donveyed to the Plan Administrator who may adopt procedures permitting Participants to convey their investment instructions directly to the transfer agent or any collective i~vestment fund made available to the Participants. The Plan Administrator may, frorp time to time, Page 11--MONEY PURCHASE PENSION PLAN Attachment 2-13 establish uniform, nondiscretionary rules with respect to the frequency or times at which ohanges in the investment media available to Participants may be made. The . Plan Administrator may also provide that if no election is made by a Participant, a default election will occur. . Page 12,-MONEY PURCHASE PENSION PLAN . Attachment 2-14 . . . SECTION 6 VESTING 6.1 Each Participant shall have a fully vested and nonforfeitable interest in the balance of the Participant's Employer Contribution Account upon completion of sixty (60) months of participation in the Plan and/or the City of Springfield, Oregon Retirement Plan. A month of participation, for purposes of this Section 6, shall be credited for each month in which a contribution is or has been made on behalf of the Participant pursuant to Section 4.2 a. of the Plan or pursuant to Section 4.2 a. of the City of Springfield, Oregon Retirement Plan. Each Participant shall have a fully vested and nonforfeitable interest in the balances of the Participant's Employee Required Contribution Account, Pick-up Account, and Voluntary Contribution Account. ' 6.2 If a former Participant in the Plan or in the City of Springfield, Oregon Retirement Plan incurs or has incurred a Severance of Employment and is or has been rehired such Participant shall, despite Section 6.1, have a fully vested interest in the balance of the Participant's Employer Contribution Account attributable to contributions made after rehire only upon completion of sixty (60) months of participation in the Plan and/or the City of Springfield, Oregon Retirement Plan, measured' from the former Participant's Reemployment Commencement Date; provided, however, that if the Participant is or has been reinstated to the Participant's position as a matter of legal right, or recalled consistent with Employer policies, such Participant shall be credited with all months of participation in the Plan including service prior to the Severance of Employment preceding such reinstatement or recall. 6.3 In the event of death, Disability or attainment of Early Retirement Age or Normal Retirement Age, the Participant's Employer Contribution Account shall become fully vested. , 6.4 If a Participant incurs a Severance of Employme~t the unvested portion of the Participant's account shall be forfeited. Forfeitures shall be applied to reduce the funding of Employer contributions as described in Section 4.4. 6.5 If, after a good faith effort by the Plan Administrator to locate a Participant or Participant's beneficiary I such Participant or beneficiary cannot be located, then the vested account balance of said Participant shall be forfeited as of the end of the Plan Year in which such determination is made. If, at any time prior to the termination and final distribution of benefits under the Plan, a former Participant or the Participant's beneficiary asserts a claim to such benefits, the :vested account balance shall be reinstated and paid to the claimant. Page 13--MONEY PURCHASE PENSION PLAN Attachment 2-15 SECTION 7 LIMITATION ON ADDITIONS . 7.1 Despit~ any other provIsion of the Plan, the maximum annual addition to the account of any Participant in any limitation Year shall not exceed the lesser of: a. Thirty Thousand Dollars ($30,000), adjusted for increases (not to exceed one-fourth (1 14th) of the defined benefit limitation provided under IRC Section 415(b)(1) as is in effect for the applicable limitation Year) in the cost of living as permitted under regulations issued by the Secretary of Treasury or his delegate. b. Twenty-five percent (25%) of the Participant's compensation for the year; provided, however, that such compensation limitation shall not include any contribution for medical benefits within the meaning of IRC Section 401 (h) or 419A(f)(2) which is otherwise treated as an annual addition under IRe Section 415(1)(1) or 419A(d)(2). 7.2 Annual addition means the sum for any Limitation Year of: a. Employer contributions, forfeitures, and . b. Employee contributions; provided, however, that annual additions for any limitation Year beginning before January 1, 1987 shall not be recomputed to treat all Employee contributions as annual additions, and c. Amounts allocated, after March 31, 1984, to an individual medical account, as defined in IRC Section 415(1)(2), which is part of a pension or annuity plan maintained by the Employer. In addition, amounts derived from contributions paid or accrued aftef December 31, 1985, in taxable years ending after such date, which are attributable to post-retirement medical benefits, allocated to the separate account of a Key Employee, as defined in IRC Section 419A(d)(3), under a welfare benefit fund, as defined in IRC Section 419(e), maintained by the Employer. d. Section 408(k). Allocations under a simplified employee pension plan defined in IRC 7.3 For the purposes of the limitations set forth in this Section, all defined contribution Plans of the Employer shall be treated as one defined contribution Plan. Page 14--MONEY PURCHASE PENSION PLAN . Attachment 2-16 7.4 If the Employer maintains, or has maintained a defined benefit plan, . in no event shall the sum of a. and b. as follows exceed one (1): a. A fraction, the numerator of which is the projected] annual benefit under all qualified defined benefit plans of the Employer (whether or not terminated) as at the end of a Plan Year and the denominator of which is the lesser of: (1) The product of 1.25, multiplied by the dollar limitation in effect in IRC Section 415(b) and (d) and in effect under IRC Section 415(c)(1 )(A) for such Plan Year (adjusted for increases in the cost of living as permitted under regulations issued by the Secretary of Treasury or his delegate). (2) The product of 1.4, multiplied by one hundred percent (100%) of the Participant's highest average compensation for the three (3) consecutive Plan Years that produce the highest average. For purposes of the foregoing, projected annual benefits shall mean the annual retirement benefit (adjusted to an actuarially equivalent straight life annuity if such benefit is expressed in a form other than a straight life annuity or qualified joint and survivor annuity) to which the Participant would be entitled under the terms of the plan assuming: . (1) The Participant would continue employment until Normal Retirement Age under the Plan (or current age, if later), and (2) The Participant's compensation for the current Limitation Year and all other relevant factors used to determine benefits under the Plan will remain constant for all future Limitation Years. b. A fraction, the numerator of which is the sum of annual additions to the Participant's account under all qualified defined contribution plans maintained by the Employer for the current and all prior Limitation Years (including annual additions attributable to the Participant's nondeductible Employee contributions to all defined benefit plans, whether or not terminated, maintained by the Employer, and the annual additions attributable all welfare benefit plans, as defined in IRC Section 419(e), and individual medical accounts, as defined in IRC Section 415(1)(2) maintained by the Employer) and the denominator of which is the lesser of the following amounts determined for the Plan Year and each prior Plan Year of Service with the Employer: (1) The product of 1.25, multiplied' by the dollar limitation determined under IRC Section 415(b) and (d) and in effect under IRC Section 415(c)( 1 HA) for such Plan Year (adjusted for increases in the cost of living as permitted under regulations issued by the Secretary of Treasury or his delegate . Page 15--MONEY PURCHASE PENSION PLAN Attachment 2-17 determined without regard to any special limitation for an employee stock ownership plan), o.r . (2) The product of 1.4, multiplied by tw~nty-five percent (25 %) of the Participant's compensation for such Plan Year. If the sum of the foregoing would exceed one (1), but for an automatic freeze or reduction of the rate of benefit accrual, then a Participant's accrued benefit under such qualified defined benefit plans shall be frozen or reduced to the extent necessary to ensure that the sum of the foregoing does not exceed one (1). If such plans do not provide for such a freeze or reduction then the annual additions under this Plan shall be reduced until the sum of the foregoing does not exceed one (1). c. Notwithstanding the above, if the Participant was a Participant as of the first day of the first Limitation Year, beginning after December 31, 1986, in one or more defined benefit plans maintained by the Employer which were in existence on May 6, 1986, the denominator of the fraction referred to in Section 7.4 a. will not be less than one hundred twenty five percent (125 %) of the sum of the annual benefits under such plans which the Participant had accrued as of the close of the last Limitation Year beginning before January 1, 1987, disregarding any changes in the terms and conditions of the Plan after May 5, 1986. The preceding sentence applies only if the defined benefit plans individually and in the aggregate satisfy the requirements of IRC Section 415 for all Limitation Years beginning before January 1, 1987. " . d. If the Participant was a Participant as of the end of the first day of the first Limitation Year beginning after December 31, 1986, in one or more defined contribution plans maintained by the Employer which were in existence on May 6, 1986, the numerator of the fraction described in Paragraph 7.4 b. will be adjusted if the sum of this fraction and the defined contribution fraction would otherwise exceed 1.0 under the terms of this Plan. Under the adjustment, an amount equal to the product of (1) the excess of the sum of the 'fraction over 1.0 times (2) the denomin?tor of this fraction, will be permanently subtracted from the numerator of the fraction. The adjustment is calculated using the fractions as they would be computed as of the end of the last Limitation Year beginning before January 1, 1987, and disregarding any changes in the terms and conditions of the Plan made after May 6, 1986, but using IRC Section 415 limitation applicable to the first Limitation Year, beginning on or after January 1, 1987. 7.5 If, as a result of the allocation of forfeitures, a reasonable error in estimating a Participant's annual compensation, or such other reason as is permitted under Treasury Regulation Section 1.41 5-6(b) (6) the annual addition for a Participant would exceed the limitations contained herein, the amount of such excess shall be allocated or reallocated to other Participant's accounts. Any estimation of Page 16--MONEY PURCHASE PENSION PLAN . Attachment 2-18 . . . compensation shall be uniformly determined and as soon as administratively possible after the end of the Limitation Year and the maximum permissible benefit shall be determined based on actual compensation. Such allocation or reallocation shall be made in the same manner as contributions are allocated hereunder. However, if such allocation or reallocation would exceed the limitations contained in this Section for all such Participants, then the excess amount shall be held un allocated in a suspense account for the limitation Year and allocated and reallocated in the next limitation Year to all Participants in the Plan before any Employer contributions, and Employee contributions which would constitute annual additions may be made to the Plan for that Limitation Year. In no event shall any excess amounts held in such suspense account be distributed to Participants or former Participants. No allocation of gains or losses shall be allocated to the suspense account. If the excess is wholly or partially attributable to Employee contributions, such amount shall be first refunded. 7.6 For purposes of this Section, compensation shall mean the Participant's wages, salaries, fees for professional services and other amounts paid or made available to the Participant for personal services actually rendered in the course of employment with the Employer to the extent includable in the gross taxable income of the Participant (including, but not limited to, commissions paid salesmen, compensation for services on the basis of a percentage of profits, commissions on insurance premiums, tips, bonuses, fringe benefits, reimbursements and expense allowances). Such term shall also include: , a. of IRe Section earned income thereunder), In the case of a Participant who is an Employee within the meaning 401 (c)(1) and the regulations issued thereunder, the Participant's (as described in IRC Section 401 (c)(21 and the regulations issued b. Amounts described in IRC Section 104(a)(31, 1 05(a) and 105(h), but only to the extent that these amounts are includable in the gross income of the Employee, c. Amounts paid or reimbursed by the Employer for moving expenses incurred by an Employee, only to the extent that these amounts are not deductible by the Employee under IRC Section 217, I d. The value of a nonqualified stock option granted to an Employee by the Employer, but only to the extent that the value of the option is includable in the gross income of the Employee for the taxable year in which granted, and e. The amount includable in the gross income of an Employee upon making the election descri.bed in IRC Section 83(b). I Page 17--MONEY PURCHASE PENSION PLAN Attachment 2-19 For purposes of the foregoing, foreign earned income shall be included as required under regulations issued under IRC Section 415. The term Compensation shall not, however, include the following: . a. Employer contributions to a plan of deferred compensation to the extent that, before the application of IRC Section 415 limitations to that plan, the cOfltributions are not includable in the gross income of the Participant for the taxable year in which contributed. b. Employer contributions made on behalf of a Participant to a simplified employee pension described in IRC Section 408(k) within the taxable year in which contributed, to the extent such contributions are deductible by the Participant under IRC Section 219(b)(7). c. Any distributions from a plan of deferred compensation regardless of whether such amounts are includable in the gross income of the Participant when distributed; provided, however, any amounts received by the Participant pursuant to an unfunded nonqualified plan may be considered as compensation in the year such amounts are includable in the gross income of the Participant. d. Amounts realized from the exercise of a nonqualified stock option, or when restricted stock (or property) held by a Participant either becomes freely transferable or is no longer subject to a substantial risk of forfeiture. e. Amounts realized by a Participant from the sale, exchange or other disposition of stock acquired under a qualified stock option. . f. Other amounts which receive special tax benefits such as premiums for group term life insurance (but only to the extent that the premiums are not includable in the gross income of the Participant) or contributions made by the Employer (whether or not under a salary reduction agreement) toward the purchase of an annuity contract described in IRC Section 403(b) (whether or not the contributions are excludable from the gross income of the Participant). g. Participant Elective Contributions under any plan qualified under IRC Section 401 (k). 7.7 If a short Limitation Year is created because of an amendment to the Plan changing the Limitation Year to a different twelve (12) consecutive month period, the maximum permissible amount shall not exceed the defined contribution dollar limitation multiplied by the following fraction: Number of months in short Limitation Year divided by twelve (12). Page 18--MONEY PURCHASE PENSION PLAN . Attachment 2-20 . . . SECTION 8 MERGER 8.1 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 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). Page 19--MONEY PURCHASE PENSION PLAN Attachment 2-21 SECTION 9 DISTRIBUTION OF BENEFITS . 9.1 Benefits under the Plan shall be distributed as provided in this Section 9. No claim for benefits need be made. 9.2 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 whose Severance of Employment is because of Disability or occurs on or after attainment of Early Retirement Age or Normal Retirement Age may at the election of the Participant be deferred until required to be distributed pursuant to Section 9.3, Section 9.5, Section 9.6, or Section 9.7. 9.3 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 9.3, Section 9.5, or Section 9.6. 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 9.3 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. 9.4 Upon the first to occur of: (i) Severance of Employment (unless the Participant or beneficiary has elected pursuant to Section 9.2 or Section 9.3 to defer distribution), (ii) The end of the deferral elected pursuant to Section 9.2 or Section 9.3, or Page 20--MONEY PURCHASE PENSION PLAN . Attachment 2-22 (iii) The death of a Participant after Severance of Employment (unless . the beneficiary has elected pursuant to Section 9.3 to defer distribution), the Plan Administrator shall cause the Participant's vested Accrued Benefit (not including any Accrued Benefit pursuant to Section 4.5) to be distributed to the Participant or the Participant's beneficiary, as the case may be, in the form of a lump sum distribution; provided, however, that the Participant or the Particip~nt's beneficiary, as the case may be, may, upon written election, elect to receive the Participant's vested Accrued Benefit attributable to the Participant's accounts described in Section 12.3 in one (1) of the following methods of distribution: a. A lump sum distribution. ., 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 Pa~ticipant (or beneficiary, where the Normal Benefit Form is elected by the beneficiary) dies prior to receipt of all such payments, any rema:ining 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 under the Policy; 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. d. The amount of the monthly payments to be provided by any annuity purchase or installment option pursuant to this Section 9.4 shall be determined based on applying the sum of the Participant's vested Accru~d Benefit attributable to the Participant's accounts described in Section 12.3 as the premium at the annuity purchase rate then in effect under the Policy. : Any Accrued Benefit of the Participant pursuant to Section 4.5 shall be distributed to the Participant or the Participant's beneficiary in the form of a lump sum distribution upon the earlier of (1) the date the Participant attains age sixty-five (65) or (2) the date of the Participant's death. 9.5 Distributions under Section 9 will be made in accordance with the regulations under IRC Section 401 (a)(9), including Treasury Regulation Section . Page 21--MONEY PURCHASE PENSION PLAN Attachment 2-23 1.401 (a)(9)-2, and according to the incidental death benefit requirement in IRC Section 401 (a)(9)(G). For purposes of Section 9: . a. The life expectancy of a Participant and a Participant's spouse (other than in the case of a life annuity) shall be redetermined, but not more frequently than-annually and in accordance with the rules as may be prescribed by the Secretary of Treasury and Regulations. b. Life expectancy and joint and last survivor expectancy shall be computed using the return multiples of Treasury Regulation 1.72-9. 9.6 This Section 9.6 shall apply despite any other provision of Section 9, but shall apply only to the extent this Section 9.6 requires an amount to be distributed for purposes of IRC Section 401 (a)(9) earlier than otherwise' required in Section 9. a. If the distribution of a Participant's interest has begun in accordance with the methods selected under this Section and the ,Participant dies before the entire interest has been distributed to the Participant, the remaining portion of such interest shall be distributed at least as rapidly as un,der the method of distribution selected under this Section as of the date of the Participant's death. b. If a Participant dies before a Participant has begun to receive any distributions ofthe Participant's interest under the Plan, the Participant's death benefit . shall be distributed to the Participant's beneficiaries within five (5) years after the Participant's death. Notwithstanding the foregoing, the five (5) year distribution requirement shall not apply to any portion of the deceased Participant's interest which is payable to or for the benefit of a designated beneficiary. In such event such portion shall be distributed over the life of such designated beneficiary (or over a period not extending beyond the life expectancy of such designated beneficiary) provided such distribution begins not later than one (1) year after the date of the Participant's death, or such later date as may be prescribed by the Secretary of Treasury in regulations. If the Participant's spouse is the Participant's beneficiary, then the requirement that the distributions commence within one (1) year of a Participant's death shall not apply. In lieu thereof, such distribution must commence no later than the date on which the deceased Participant would have attained age seventy and one half (70-1 /2). If the surviving spouse dies before the distribution to such spouse begins, , then the five (5) year distribution requirement shall apply as if the spouse were the Participant. 9.7 Despite any other provision of the Plan, and except as otherwise provided in this Section 9.7, a Participant shall receive, no later than April 1st of the following calendar year, a lump sum distribution of the Participant's interest as of the end of the calendar year in which the Participant (1) attains age seventy and one-half Page 22--MONEY PURCHASE PENSION PLAN . Attachment 2-24 . . . (70-1/2) or (2) retires, whichever is later. Any allocations to the account of the Participant subsequent to 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. The following transition rules shall apply to the foregoing: a. A Participant who attains age seventy and one-half (70-1 /2) before January 1, 1988 shall receive a distribution in accordance with su_bpart (1) or (2) below: (1) Not a five percent (5 %) owner. The required beginning date of a Participant who is not a five percent (5 %) owner is the first day of April of the calendar year following the calendar year in which the later of retirement or attainment of age seventy and one-half (70 1/2) occurs. (2) Five percent (5 %) owner. The required beginning date of a Participant who is a five percent (5 %) owner during any year beginning after December 31, 1979 is the first day of April following the later of: (a) The calendar year in which the Participant attains age seventy and one-half (70-1/2), or (b) The earlier of the calendar year with or within which ends the Plan Year in which the Participant becomes a five percent (5 %) owner or the calendar year in which the Participant retires. The required beginning date of a Participant who is not a five percent (5 %) owner who attains age seventy and one-half (70-1/2) during 1988 and who has not retired as of January 1, 1989 is April 1, 1990. b. Five percent (5%) owner. A Participant is treated as a five percent (5%) owner for purposes of this subsection if such Participant is a five percent (5%) owner as defined in IRC Section 416(i) (determined in accordance with Section 416 but without regard to whether the Plan is top heavy) at any tim? durin,g the Plan Year ending with or within the calendar year in which such owner attains age sixty-six and one-half (66-1/2) or any subsequent Plan Year. c. Once distributions have begun to a five percent (5 %) owner under this section, they must continue to be distributed, even if the Participant ceases to be a five percent (5 %) owner in any subsequent Plan Year. d. The provisions of the foregoing shall not apply to any Participant who made a valid election under Section 242(b) of the Tax Equity and Fiscal Responsibility Act of 1984; provided, however, that for calendar years :beginning after Page 23--MONEY PURCHASE PENSION PLAN Attachment 2-25 December 31, 1988, such distributions must meet the minimum distribution incidental benefit.requirements in Treasury Regulation Section 1.401 (a)(9)-2. . 9.8 Despite any other provision of the Plan that would otherwise limit a distributee's election under this Section 9, 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: 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 trus't described in IRC Section 401 (a), that accepts the distributee's eligible rollover distribution. 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. 9.9 Upon Severance of Employment of a 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 form of a lump sum distribution Page 24--MONEY PURCHASE PENSION PLAN . Attachment 2-26 . . . to the alternate payee. Despite the foregoing, such vested benefit shalll be distributed in the form of a lump sum distribution no later than the date requir1ed by Treasury regulations under IRC Section 401 (a)(9) or upon such earlier date provided under the order. 9.10 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 beneficiary 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 25--MONEY PURCHASE PENSION PLAN Attachment 2-27 SECTION 10 ADMINISTRA TION . 10.1 The Employer may delegate its responsibility as Plan Administrator to a committee to administer the Plan. Any member may resign by delivering his written resignation to the Employer and to the committee. Vacancies in the committee arising by resignation, death, removal, or otherwise, may be filled by the Employer. The committee, if appointed, shall be deemed the Named Fiduciary and if not appointed the Employer shall be the Named Fiduciary. 10.2 The Plan Administrator shall administer the Plan in accordance with its terms and shall have all powers necessary to carry out the provisions of the Plan. The Plan Administrator shall determine all questions arising in the administration, interpretation, and application of this Plan. Any such determination by the Plan Administrator shall be conclusive and binding upon all persons. The Plan Administrator, in making its determinations, shall follow uniform rules which shall be consistently applied so that all Participants similarly situated will be treated alike. The Plan Administrator may also at its discretion: 'a. Appoint and employ an administrator to advise the Plan . Administrator to the extent necessary on allocations, to prepare such reports and returns as may from time to time on the operation and performance of the Plan. b. opinion audit. Employed a Certified Public Accountant to annually prepare an c. Employ counsel who may also be counsel for the Employer, to render legal advice and such other persons to render such other advice it may deem necessary to administer the Plan. d. Appoint or employ, or both, such other persons to perform such other specialized services as it may deem necessary to efficiently administer the Plan. The words "appoint or appointment" as used in this section shall mean a contracting for services whereby the Plan Administrator delegates part or all of its fiduciary duties to the appointee. An appointment or employment under this section may occur only after a majority of the Plan Administrator, if appointed, shall agree, by a vote at a meeting, or by writing if there is not meeting, that such appointment or employment is necessary for the efficient administration of the Plan. The Plan Administrator shall not be liable for any Page 26--MONEY PURCHASE PENSION PLAN . Attachment 2-28 . acts taken in good faith by it in relying upon opinions, reports or other services provided by persons properly and prudently appointed by the Plan Administrator. 10.3 The committee shall act by a majority of its members at the time in office, and such action may be taken either by a vote at a meeting, or in writing without a meeting. The committee may authorize anyone or more of its members to execute any document or documents 'on beh~lf of the committee. 10.4 The Plan Administrator shall keep a record of all its proceedings and acts, and shall keep all such books of account, records, and other data as may be necessary for proper administration of the Plan. The committee, shall notify the Employer of any action taken by the committee, and when required, shall notify any other interested person or persons. Such records, books of account, and other data shall be preserved by the Plan Administrator for a minimum of six (6) years dating fror;n their preparation or filing with state or federal tax authorities, whichever is later. . 10.5 Unless otherwise determined by the Employer, the members of the committee shall serve without compensation for service. The Plan Administrator and committee are authorized to cause payment from the Trust Fund of all the Trustees' compensation, 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. The Plan Administrator and committee are authorized to cause payment from the Trust 'Fund and the Policy of all expenses of the Plan Administrator and committee. Such expenses shall include any expenses incident to the functioning of the Plan Administrator and committee, including, but not limited to, fees of accountants, actuaries, attorneys, other specialists and agents, and other costs of administering the Plan. To the extent that the Plan Administrator and committee do not cause payment to be made, the Employer may directly pay all the Trustees' compensation, expenses, taxes and charges and all expenses, of the Plan Administrator and committee. 10.6 The Plan Administra~or shall not be liable for any loss to the Plan resulting from the purchase, retention or sale of any Plan assets, provided that the I Plan Administrator shall have discharged its duties with respect to the Plan solely in the interest of the participants and beneficiaries, and with care, skill; prudence and diligence appropriate under the then prevailing circumstances in accordance with the terms and conditions set forth in this Plan. 10.7 The responsibility of each member of the committee is limited to those powers and the performance of those duties assigned to it in this section. Each member of the committee shall have no responsibility for the acts or omissions of any other fiduciary of this Plan unless: . Page 27--MONEY PURCHASE PENSION PLAN Attachment 2-29 a. The committee member knowingly participates in such act or omission and has made no reasonable effort to prevent such act or omission, and has . knowingly tried to conceal such act or omission, knowing such act or omis~i6n to be a breach of conduct, or b. The committee member, by not discharging the member's duties in the manner described in Section 10.6, enable's another fiduciary to commit a breach of conduct, or c. The committee member has knowledge of a breach of conduct by another fiduciary and makes no reasonable effort under the circumstances to remedy such breach of conduct. 10.8 The Employer shall indemnify each member of the committee against any claim, loss, damage, expense or liability arising from any action or failure to act, except when the same is judicially determined to be due to the act or omission in bad faith of such member. . Page 28--MONEY PURCHASE PENSION PLAN . Attachment 2-30 . . . SECTION 11 AMENDMENT AND TERMINATION 11.1 The Employer expects to continue this Plan indefinitely, but nevertheless reserves the right at-any time or times to amend this Plah to any extent and in any manner that the Employer may deem advisable by resolution of the Common Council of the Employer making such amendment, 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 the Trust or the Plan; or (b) shall cause or permit any property held subject to the Trust or the Plan to be diverted to purposes other than the exclusive benefit of the present or future Participants and their beneficiaries. 11.2 The Employer has established the Plan with the bona fide intention and expectation that it will be able to make 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. 11.3 The Plan hereby created shall terminate upon the date specified for the termination in a resolution of the Common Council of the Employer terminating the Plan. 11.4 In the event of a curtailment, termination or partial termination of . the Plan, all affected Participants shall have a fully vested and nonforfeitable interest in their Accrued Benefit. Despite any other provision of the Plan, if (1) a termination of the Plan occurs prior to the end of a Plan Year, no Participant shall be entitled to an allocation of Employer contribution for that Plan Year, or (2) a reduction in the required contribution occur.? prior to the end of a Plan Year, no Participant shall be entitled to an allocation of Employer Contribution for that Plan Year greater than the reduced amount determined under the Plan amendment causing such reduction. Page 29--MONEY PURCHASE PENSION PLAN Attachment 2-31 SECTION 12 ACCEPTANCE OF ASSETS FROM OTHER PLANS . 12.1 Except as provided in this section, no assets may be transferred or rolled over to this Plan from any other plan qualified under IRC Section 401 (a). 12.2 The Plan Administrator, in the Plan Administrator's sole discretion, may accept a transfer of all or any part of assets, subject to any associated liabilities, directly from the City of Springfield, Oregon Retirement Plan made other than as a direct rollover (as defined in Section 9). 12.3 Amounts received by the Trustee pursuant to this section shall be maintained in the following accounts: Amounts received in a transfer from the following account under the City of Springfield. Oregon Retirement Plan Shall be maintained in the following account under this Plan on behalf of the Participant Employer Contribution Account PM Employer Contribution Account Pick-up Account PM Pick-up Account . Employee Required Contribution Account PM Employee Required Contribution Account Voluntary Contribution Account PM Voluntary Contribution Account Any reference herein to accounts described in Section 12.3 means the accounts under this Plan named in the right column above. 12.4 Amounts in Participants' accounts described in Section 12.3 shall be held .in the Policy. 12.5 As of the Transfer Date described in Section 18 of the City of Springfield, Oregon Retirement Plan, and annually thereafter on a convenient date selected annually by the Plan Administrator, any Participant with an account described in the left column below may elect to transfer twenty-five percent (25 %), fifty percent (50%), seventy-five percent (75 %), or one hundred percent (100%1 of the amount in such account to the corresponding account described in the right column below: Page 30--MONEY PURCHASE PENSION PLAN . Attachment 2-32 . . . Amounts held in the following account under . this Plan on behalf of a Participant May be transferred to the following account under this Plan on behalf of the Participant PM Pick-up Account Pick-up Account PM Employee Require.d Contribution Account Employee Required Contribution Account PM Voluntary Contribution Account Voluntary Contribution Account Any amount so transferred shall for the first three months after the transfer not be invested in the Income Accumulation Fund offered by Wells Fargo Bank, N.A., any other stable value fund, or any money market fund. Such election and transfer shall be made under procedures implemented by the Plan Administrator. 12.6 Each Participant shall vest in the Participant's PM Employer Contribution Account only as provided in Section 6 for vesting in the Participant's Employer Contribution Account. Each Participant shall have a fully vested and nonforfeitable interest in the balances of the Participant's PM Employee Required Contribution Account, PM Pick-up Account, and PM Voluntary Contribution Account. Page 31--MONEY PURCHASE PENSION PLAN Attachment 2-33 SECTION 13 CLAIMS PROCEDURE 13.1 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 hereunder because of retirement, Disability, death or Severance of Employment for any other reason. Such claim form shall be completed and sub01itted 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, if any, 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. 13.2 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 comments must be submitted in writing to the Plan Administrator. Such issues and comments 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 32--MONEY PURCHASE PENSION PLAN Attachment 2-34 . . . . . . SECTION 14 MISCELLANEOUS 14.J The adoption and maintenance of the Plan shall not be deemed to be a contract between the Employer and any Employee. Nothing herein contained 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 herein contained 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 his employment at any time. 14.2 This Plan shall in all respects be construed according to the laws of the State of Oregon, except as modified in Section 14.5. 14.3 All benefits payable under the Plan shall be paid or provided for solely from the Trust or the Policy and the Employer assumes. no liability or responsibility therefor. 14.4 No Participant shall have power to alienate, transfer, assign, anticipate, mortgage or otherwise encumber either the Participant's interest in the Trust or the Policy or in any other property held by the Trustee for the Participant's benefit under the terms of this Trust. No interest of a Participant in the Trust or the Policy or in any other property held by the Trustee for the Participant's benefit shall be subject to garnishment, attachment or other 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. This Section shall not apply to a qualified dor;nestic relations order as defined in IRC Section 414(p). 14.5 The terms of this Plan shall be interpreted and administered in a manner consistent with the requirements of the IRC in order that the P1lan may qualify as a qualified Employee benefit Plan. 14.6 Whenever any words are used herein in the masculine, 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 herein in the singular or plural form, they shall be construed as though!they were also used in the other fOfm in all cases where they would so apply. 14.7 It is intended that the Plan and Trust and the Policy will qualify as tax exempt under the provisions of Sections 401 (a) and 501 (a) of the IRC. If the Page 33--MONEY PURCHASE PENSION PLAN Attachment 2-35 Commissioner of Internal Revenue determines that the Plan is not initially qualified under the Internal Revenue Code, any contribution made incident to that initial . qualification by the Employer shall be returned to the Employer within one (1) year after the date the initial qualification is denied, but only if the application for the qualification is made by the time prescribed by law for filing the Employer's return for the taxable year in which the Plan is adopted, or such later date as the Secretary of Treasury may prescribe. 14.8 Unless otherwise specifically provided herein, 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 herein, 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. 14.9 This Plan may be executed in several counterparts, and each shall be an original without reference to the others. DATED this day of , 1995. EMPLOYER: . CITY OF SPRINGFIELD, OREGON By: City Manager Page 34--MONEY PURCHASE PENSION PLAN . Attachment 2-36 Post.It'" brand fax transmittal memo 7671 From ~ SPRINGFIELD NO. 94-91 A RESOLUTION OF THE CITY OF SPRINGFIELD, REGARDING C!ITY PICK-UP OF NONtniION D1PLOYEE SIX PERCENT CONTRIBUTION REQUI~ENT TO EMPLOYEE RETIREMENT PLANS. . WHEREAS, certain employees of the city of sp~ingfield, Oregon (the city) are members of the Oregon Public Employest Retirement system (PERS)i and WHEREAS, ORS 237.071 generally requires members of PERS to contribute to PERS six percent of their salarYi and i wnEREAS, ORS 237.075 allows the city to agre~ to pick up the employee contributions required .by ORS 237.071 and thereby to make contributions to PERS in lieu of such employee:contributions and in addition to employeest compensation; and wtiEREAS, the City has agreed to so pick up smch employee contributions to.PERSi and wnEREAS, the city has established the city of springfield, . Oregon ~etirement Plan (the Retirement Plan) i and WHEREAS, the city makes pick-up contributions under section 4.2 b. of the Retirement Plan equal to 6% or 7% of ~ctively participating employees' Monthly Earnings and in addition to employees' compensation; and ' ~ . ~ WHEREAS, the city contemplates establishing the city of springfield, Oregon Money Purchase Pension Plan (the Pension Plan) and making pick-up contributions thereto equal to 6% or 7% of actively participating employees' Monthly Earnings and in"addition to employees' compensation; and WHEREASt Oregon Constitution Article IX, section la, subsection (1), requires employees of the city who ,will receive a retirement benefit from PERS, the Retirement Plan, or the Pension Plan to contribute thereto six percent of their salary or gross wage; and wtiEREASt Oregon Constitution Article IX, section lO, . . ' subsectlon (2), allows the Clty to contract before January 1, 1995 to make contributions to PERS, the Retirement Plan; and the Pension Plan to relieve employees of their obligation to contribute six percent; and ! , I WHEREAS, the city desires to contract to make contributions to PERS, the Retirement Plan, and the Pension Plani in addition to employees' compensation, to relieve certain nonrepresented employees of their obligation to contribute six percent of their salary or gross wage earned during the period from: December 19, 1994 through June 30, 1996; l::Y ~."H ~ IT A.... Attachment 2-37 \... 4..4 ". ..11 J l.il . .' \. 1 J j \! j lJl\. \ L 1 BUU': .# . ~ NOW, THEREFORE, be it resolved by City of Springfield that: section 1. Effective December 19, 1994, for compensation earned on or after December 19, 1994 by employees of the city who are not in a collective bargaining unit at the time the compensation is earned: (a) On behalf of each employee who is or becomes a member of PERS or a participant in the Retirement Plan or the Pension Plan, the employee contributions required by ORS 237.071 and Oregon Constitution Article IX, section 10, subsection (1), although designated as employee contributions, will be paid by the city to such retirement plan of which the employee is a member or participant, in lieu of such contributions by the employee. The employee does not have the option of choosing to receive the contributed amounts directly, and paying the employee contribution directly, instead of having the contributed amounts paid by the city to such retirement plan. Such contributions are deemed to be "picked Upll for purposes of Internal Revenue Code S414(h) (2) ("pick-up contributions"). (b) For employees hired or rehired by the city before December 31, 1994, but only while thereafter continuously employed by the city, and only with respect to compensation earned during . the period from December 19, 1994 to and including June 30, 1996: ~ (1) Such pick-Up contributions shall relieve the employees of the obligations imposed by ORS 237.071 and Oregon Constitution ArtiCle IX, section 10, subsection (1). (2) Such piCk-Up contributions will be made in addition to the employees' compensation, so that each employee's compensation remaining after the piCk-Up contribution is not reduced as a result of the pick-up contribution. (3) If such piCk-Up contributions to the Retirement Plan or the Pension Plan exceed the current level of the city's pick-up contributions under section 4.2 b. of the Retirement Plan, such excess shall offset the amounts, if any, required to be contributed by the City under section 4.2 a. of the Retirement Plan or the comparable section of the Pension Plan. '-" (4) The provisions of subsections (a) and (b) of this section 1. are in consideration of an employee's employment with the city during the remainder of 1994, excluding December 31, 1994, and are part of the employee's contract of employment with the city. Such provisions of this resolution as part of such contract may not be changed except as agreed to by the City and the employee. The city may not terminate the employee, change . the employee's status, reduce the employee's hours, or terminate or prevent the employee's membership or participation in PERS, the Retirement Plan, or the Pension Plan, for the purpose of avoiding such provisions of this resolution as part of such contract. Attachment 2-38 . '-' . '-'" . ~ ~.... 1..,.1.1 .\.l...\...IJ\.'1"~l ~ UU.l -. . i (5) The City's obligations under this section 1. may be satisfied by pick-up contributions by the City to any retirement system or plan established now or in the future by law, charter, ordinance or resolution and of which the employee is or becomes a member or any system or plan offered now or in the future by.the city and from which the employee will receive a retirement benefit, provided that such pick-up contributions shall be made as otherwise provided in this Section 1. Such pick-up contributions shall be made to a system or plan other than PERS, the Retirement Plan, or the Pension Plan only pursu~nt to an ordinance or resolution by the city. apply: (c) Where subsection (b) of this section 1. does net I (1) Such pick-up contributions shall not relieve the employees of the obligations imposed by ORS 237.071 and Oregon Constitution Article IX, section 10, subsection (1)... (2) Such pick-up contributions will be made on a compensation reduction basis, so that each ernployee~s compensation remaining after the pick-up contribution will be as reduced by the amount of the pick-up contribution. . (3) Employees' reported compensation on the W-2 form for tax purposes will be reduced by the amount.of such pick-up contributions. i (d) During periods for which such pick-up contributions on behalf of an employee are to be made to the Retirement Plan, the Pension Plan, or any other retirement plan other than PERS, for compensation earned by the employee during periods for which contributions on behalf of the employee would not be made under Section 4.2 a. of the Retirement Plan (if the employee were participating in the Retirement Plan) :because the employee is not a full-time employee within the rnea~ing of the Retirement Plan as it is stated prior to the date of this resolution: . (1) Subsection (a) of this section 1. shall apply only to compensation earned by the employee on or after January 1, 1995; and (2) Subsection (b) of this Section~l. shall not apply to the employee. (e) During periods for which such pick-~p contributions on behalf of an employee are to be made to PERS, for compensation earned by the employee during periods for which contributions by or on behalf of the employee would not be made under ORS 237.071 or ORS 237.075 (as applied on December 7, 1994) Attachment 2-39 /. '-" ~ ~ ..J .i, ..I. . ~ .j \~J..1 J \,j "J I 1.1J . .. \....1 J j . \. J J l) l\ \ t", 1 ~UU.. . because the employee is not "an employee who is an active member of the system" within the meaning of ORS 237.071 (as applied on December 7, 1994). (1) Subsection (a) of this section 1. sh~ll apply only to compensation earned by the employee on or after January 1, 1995; and (2) Subsection (b) of this section 1. shall not apply to the employee. ' section 2. If during any period an employee has an account or membership in more than one of PERS, the Retirement Plan, the Pension Plan, or other retirement plan offered by the city, the provisions of this resolution other than this section 2. shall apply with respect to compensation earned by the employee during such period by treating the employee as having an account or membership in only the plan to which the City makes contributions, other than pick-up contributions, on behalf of the employee for such period or, if the city does not make such contributions for such period, the plan in which the employee has most recently established an account or become a member. section 3. The city's obligations under this resolution to . contribute amounts to PERS, the Retirement Plan, and the Pension Plan shall be limited by the limitations on annual additions provided in Internal Revenue Code S415 and by the limitation in Internal Revenue Code ~401(a) (17) on compensation that may be taken into account under such retirement plans. Any amount the city would be required by this resolution to contribute to such retirement plans except for this section 3. shall be contributed by the city to another retirement system or plan that is not subject to such requirements of the Internal Revenu'e Code. section 4. The Retirement Plan is hereby amended to accept the contributions required by Oregon constitution Article IX, section 10, subsection (1), and permitted by section 10, subsection (2), thereof; to provide that the pick-up contributions required by this resolution shall not be reduced by amounts forfeited; and to conform to the provisions of this resolution. The part of such contributions not qualifying as pick-up contributions under Internal Revenue Code ~414(h) (2) shall be added to an Employee Required Contribution Account for each affected employee. The part of such contributions qualifying as pick-up contributions under Internal Revenue Code ~414(h) (2) shall be added to a pick-up Account for each affected employee. Section 5. The city Manager is directed to reflect in the document for the Retirement Plan the amendment to the Retirement . Plan made by this resolution and to present such revised document to the Common Council. Attachment 2-40 . ./ V . ~ . ,-",i Uld7,:!;; 1~;;)1> (111 UF SI'FlD (In: .\TrUK\1::1 ~ 003 - ,iI.' . "'": , , I . I section 6. This resolution does not affect the Retirement Plan or the Pension Plan with respect to amounts contributed thereto and picked up by the city under Internal Revenue Code S414(h) (2) in excess of the employee contributions required by Oregon Constitution Article IX, section 10, subsection (1), whether such amounts are picked up in addition to compensation or on a compensation reduction basis. section 7. Except as expressly provided in this resolution, nothing in this resolution shall be deemed to give any employee the right to be retained in the employ of the city or to interfere with the right of the city to discharge any employee at anytime. section 8. If the requirement of Oregon cons'titution Article IX, section 10, subsection (1), that employees contribute six percent of their salary or gross wage is determ~ned in the opinion of counsel for the city or by a court having competent jurisdiction to be invalid as applied to any employ~e of the city, this resolution shall nevertheless apply for period~ prior to such determination as if such requirement were valid. section 9. If any provision of this resolut~on is held invalid.for any reason by a court or administrative body having competent jurisdiction, the remaining provisions sh~ll remain valid and in full force and effect. , Adopted by the Common Council and approved by the Mayor of the City of Springfield, Oregon this 19th day of December, 1994. ADOPTED by a vote of 4 for and 1 agai'nst. ~~\M~J&t' Mayor \ : I I , ATTEST: Jrt tIt /J kt. tL_ -. city Recorder . '.. . ~ . . ,~~.. /.... -;: i:";': ....:' ',.! ..... .~. . . (~~.~~.;:;t _ /!~--_. - -~-~.~ i. ::;:.:. . JO _JJ.i~ir ...,.....--.;;. .' .; ,r 1-\' ^~-I'OD;'...!-y t,.. i':-. '-,'I..' \ ~ _: l ~ .'"""\ I I . " ..- ('...,....:" ~..>.:..:>~.:}~:i~L.D ~ . 1 .. . Att~chment 2-41 . MONEY PURCHASE PENSION PLAN TRUST OF . CITY OF SPRINGFIELD, OREGON . HERSHNER, HUNTER, MOULTON, ANDREWS & NEILL Eugene, Oregon : I Attachment 3-1 CITY OF SPRINGFIELD, OREGON MONEY PURCHASE PENSION PLAN TRUST Table of Contents Page SECTION 1 TRUST, TRUSTEES AND TRUST FUND. . . . . . . . . . . . .. 1 SECTION 2 CONTRIBUTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3 SECTION 3 PAYMENTS FROM TRUST FUND . . . . . . . . . . . . . . . . .. 4 SECTION 4 ADMINISTRATION OF TRUST FUND ............... 6 SECTION 5 ACCOUNTS AND REPORTS OF TRUSTEES . . . . . . . . . .. 11 SECTION 6 SUCCESSION OF TRUSTEE. . . . . . . . . . . . . . . . . . . . .. 12 SECTION 7 AMENDMENT OR TERMINATION . . . . . . . . . . . . . . . . .. 14 SECTION 8 MISCELLANEOUS ............................ 16 Page i--MONEY PURCHASE PENSION PLAN TRUST Attachment 3-2 . . . . .. . CITY OF SPRINGFIELD, OREGON MONEY PURCHASE PENSION PLAN TRUST PARTIES-: CITY OF SPRINGFIELD, OREGON, an Oregon Municipality (Employer) WELLS FARGO BANK, N.A., a national banking association (Trustees) RECITALS: A. The Employer maintains the City of Springfield, Oregon Money Purchase Pension Plan (the "Plan") for the benefit of its eligible employees. B. It is the intent of the Employer to execute this Trust Agreement in conjunction with the establishment of the City of Springfield, Oregon Money Purchase Pension Plan which will be executed contemporaneously with this Trust Agreement. SECTION 1 TRUST. TRUSTEES AND TRUST FUND 1.1 Trust. This Agreement and the Trust evidenced hereby, as amended from time to time, shall be known as the City of Springfield, Oregon Money Purchase Pension Plan Trust (the "Trust"), and is hereby intended by the Employer to carry out the purposes of the Plan. 1.2 Trustees. Wells Fargo Bank, and its successor or successors, are hereby designated as the Trustees, to hold, receive, invest, administer and distribute the Trust Fund in accordance with the Trust, the provisions of which shall solely govern the powers, duties and responsibilities of the Trustees, and nothing contained in the Plan, either expressly or by implication, shall impose any additional pqwers, duties or responsibilities upon the Trustees. The duties and responsibilities of the Trustee shall be solely those set forth in this Trust Agreement, and the Trustee shall not be a named fiduciary under the Plan and. shall not have the authority to interpret the Plan. Page 1--MONEY PURCHASE PENSION PLAN TRUST Attachment 3-3 1 .3 Trust Fund. The assets held under the Trust, collectively, are herein referred to as the "Trust Fund" and shall consist of contributions received by the Trustees, investments and reinvestments thereof, and the earnings and income thereon, less disbursements therefrom. Except as herein otherwise provided, title to the assets of the Trust Fund shall at all times be vested in the Trustees, subject to the right of the Trustees to hold title in bearer form or in the name of the nominee, and the interest of others in the Trust Fund shall be only the right to have such assets received, held, . invested, administered and distributed in accordanc-e with the provisions of the Trust. 1.4 Plan. The Trust Fund shall be a funding vehicle for the City of Springfield, Oregon Money Purchase Pension Plan (the "Plan"). 1.5 Plan Administrator. The Employer named above including any committee established by it to perform the functions of the Plan Administrator. Page 2--MONEY PURCHASE PENSION PLAN TRUST Attachment 3-4 . . . . . . SECTION 2 CONTRIBUTIONS 2.1 Duties of Trustees Regardina Contributions. All contributions made under the Plan shall be delivered to the Trustees. The Trustees shall be accountable for all contributions received by them, but shall have no duty to require any contributions to be made to them, or to determine whether contributions received comply with the Plan or with any resolution of the Common Council of the Employer providing therefor. 2.2 Limitation on Reversions. The Employer has no beneficial interest in the Trust Fund and no part of the Trust Fund shall ever revert or be repaid to the Employer directly or indirectly, provided, however, that: (a) If a contribution or any portion thereof is made by the Employer through a mistake of fact, the Trustees shall, upon written request o,f the Employer, return the contribution or such portion (reduced by any losses attributable thereto) within one year after the date of contribution to the Trustees. , (b) If the deductibility of any contribution under Section 404 of the Internal Revenue Code of 1986 (the "Code") is disallowed, then an amount equal to the amount disallowed (less any losses attributable thereto) shall be returned to the Employer upon written request within one year after such disallowance. Page 3--MONEY PURCHASE PENSION PLAN TRUST Attachment 3-5 SECTION 3 PAYMENTS FROM TRUST FUND 3.1 Distribution Directives. The Plan provides for t~e appointment of a Plan Administrator to serve as a named fiduciary and administrator. If said appointed Plan Administrator is other than the Trustees, then distributions shall be made from the Trust Fund by the Trustees to such persons or other entities, in such manner, at such times, in such amounts and for such purposes as the Plan Administrator shall direct. The Trustees shall also discontinue .or stop distributions from the Trust Fund in accordance with the direction of the Plan Administrator. The Trustees shall have no responsibility to monitor the application of distributions so made or to ascertain whether the directions of the Plan Administrator comply with the terms of the Plan. The Trustees shalf not be liable for any distribution made by them in good faith without actual or constructive notice or knowledge of the changed status or condition of a distributee. If any payment is not claimed, the Trustees shall notify the Plan Administrator. 3.2 Warrantv of Emplover. The Employer warrants that no improper direction will be issued to the Trustees by it (or by the Plan Administrator, if other than the Trustees), and that the Plan will be administered only in accordance with its terms. 3.3 Compensation and Expenses. No fee or compensation shall be paid to any individual Trustee who is an employee of the Employer for services performed as a Trustee, but any other person or entity acting as a Trustee shall be entitled to reasonable compensation for services rendered as may be agreed upon from time to time by the Employer and the Trustee. The Trustees are authorized to payor reimburse the Trustees for all the Trustees' compensation, 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. The Trl"lstees are authorized to payor reimburse the Plan Administrator and committee for all expenses of the Plan Administrator and committee. Such expenses shall include any expenses incident to the functioning of the Plan Administrator and committee, including, but not limited to, fees of accountants, actuaries, attorneys, other specialists and agents, and other costs of administering the Plan. To the extent that the Trustee does not make such payments, the Employer may directly pay all the Trustees' compensation, expenses, taxes and charges and all expenses of the Plan Administrator and committee. 3.4 Withholdinq of Taxes. The Trustee shall make distributions or transfers from the Trust specified in written directions from the Plan Administrator. The Trustee is authorized, to the extent required under applicable law, to withhold from Page 4--MONEY PURCHASE PENSION PLAN TRUST Attachment 3-6 . . . . . . distributions to any payee an amount that the Trustee determines is necessary to cover federal and state taxes, and the Trustee is required to withhold such amounts if so directed by the Plan Administrator. The Trustee shall be under no liability for making any distribution or transfer pursuant to the direction of the Plan Administrator (including amounts withheld pursuant to the previous sentence). The Plan Administrator shall furnish to the Trustee all information necessary to carry out such withholding, or, if such information is not provided to the Trustee, the Plan Administrator shall hold the Trustee harmless from and indemnify it for any liability and related expenses from improper withholding. 3.5 Interest Non-Transferable. No Participant shall have any right to sell, assign, pledge, hypothecate, anticipate or in any way create a lien upon any part of the Trust Fund. No interest in the Trust Fund shall be assignable in or by operation of law, or be liable in any way for the debts or defaults of Participants, their beneficiaries, spouses, or heirs-at-Iaw, whether to the Employer or to others or for any claims for alimony or for the support of the spouse of a Participant. or beneficiary; except that the Trustees shall distribute a Participant's benefits under the Plan, or any portion thereof, in accordance with the terms of any domestic relatio'ns order which is determined by the Plan Administrator to be a qualified domestic relations order described in Section 414(p) of the Code. 3.6 Overoavments. If any distribution shall be determined to have been excessive or improper, and the distributee thereof shall fail, upon request, to make repayment-to the Trustees of such overpayment, then the Trustees shall deduct the amount of any overpayment from any other distributions thereafter payable to such distributee. 3.7' Dispute as to Payments. In the event that any dispute shall arise as to whether any distribution shall be made by the Trustees, or to whom any distribution shall be made, the Trustees may withhold such payment until such dispute shall have been resolved. Page 5--MONEY PURCHASE PENSION PLAN TRUST Attachment 3-7 SECTION 4 ADMINISTRATION OF TRUST FUND . 4.1 Manaoement and Control of Trust Fund. Except as provided in this Section 4.1, the Plan Administrator shall have all power over and responsibility for the management, disposition and investment of the Trust assets, and the Trustee shall comply with proper written directions of the Plan Administrator concerning those assets. Except as otherwise provided in this agreement, the Trustee shall have no duty or responsibility to review, initiate action, or make recommendations regarding Trust assets and shall retain assets until directed in writing by the Plan Administrator to dispose of them. Notwithstanding the foregoing, Participants and/or their beneficiaries shall have the power to invest their own accounts pursuant to the Plan. Such investments shall be only those permitted by the Plan Administrator. Participants or beneficiaries shall exercise such power by giving written directions to the Plan Administrator with respect to investments and changes of investments of their respective accounts. Once the Plan Administrator has determined that the directions are proper under the Plan, it shall promptly transmit those directions to the Trustee. In the absence of directions from a Participant, the Plan Administrator shall direct the investment of the Participant's accounts. The Trustee shall have no duty or responsibility to review or make recommendations regarding investments made at the direction of the Plan Administrator. The authority, discretion and responsibility of assets subject to the investment control of the Plan Administrator may be delegated to one or more Investment Managers as provided in Section 4.4 hereof. . 4.2 Investment of Funds. Subject to directions received under Section 4.1: (a) The Trustees may invest and reinvest the Trust Fund without distinction between principal and income, in obligations of the United States Government and/or in other classifications of investment such as bonds, notes, deben- . - tures, mortgages, equipment trusts, investment trusts, collective trust funds, or voting trust certificates, preferred or common stocks (which term shall include shares of investment companies registered under the Investment Company Act of 1940), or other securities or property of any kind, real or personal, either within or without the State of Oregon, without limitation by reason of any state statute or local rule of law regarding investment of trust funds. (b) The Trustees may invest any portion of the Trust Fund in a savings account, other bank account or deposit (including such an account or deposit with any corporate trustee, including Wells Fargo Bank, or with a fiduciary or party in interest) which bears a reasonable rate of interest, and in cash or accounts or deposits which Page 6--MONEY PURCHASE PENSION PLAN TRUST . Attachment 3-8 do not bear interest for only such limited time as is necessary pending investment, . reinvestment or payment of benefits. (c) Notwithstanding any provision of this Trust all or any part of the assets may be invested in any collective investment trust then qualified for tax exemption under Section 584 of the Code, or amendments thereof, which is then maintained by any bank or trust company then acting as a trustee, co-trustee, or agent for the Trustees hereunder. The provisions of the document governing such collective investment trust, as amended from time to time, shall govern any investment therein, and are hereby made a part of this Trust. (d) The Trustees may cause any part or all of the assets of this Trust to be commingled solely for purposes of investment with the assets of any other pension or profit sharing trust of the Employer exempt from taxation under Section 501 (a) and described in Section 401 (a) of the Code as from time to time amended, provided that if said other pension or profit sharing trust or portion thereof becomes disqualified for tax exemption under Section 501 (a) of the Code, the commingled assets of this Trust shall cease to be part of said disqualified trust and shall be immediately transferred to a separate trust fund created to receive the assets of this Trust, and provided further that the records of this Trust and such other trusts shall indicate the true ownership, by percentages, or otherwise, of the total commingled assets of such trusts. . 4.3. Trustees' Administrative Powers. Except as otherwise provided elsewhere in the Trust, the Trustees shall have the following powers, rights and duties in addition to those provided elsewhere in the Trust or by law: (a) to retain, manage, improve, repair, insure, operate and control any asset of the Trust Fund; (b) to sell, exchange, convey, transfer, partition, grant options with respect to, lease for any term (even though such term extends beyond the duration of this Trust or commences in the future), mortgage, pledge, abandon, or otherwise deal with or dispose of any asset of the Trust Fund in. such manner, for such consideration and upon such terms and conditions as the Trustees shall determine and no person dealing with the Trustees shall be required to monitor the application of the purchase money or to inquire into the validity, expediency or propriety of any such sale or other disposition; , (c) to employ such accountants, actuaries, attorneys and agents as may be reasonably necessary in collecting, managing, administering, ilnvesting, distri- buting and protecting the Trust Fund or the assets thereof; . Page 7--MONEY PURCHASE PENSION PLAN TRUST Attachment 3-9 (d) to settle, submit to arbitration, compromise, contest, prosecute or abandon claims and demands in favor of or against the Trust Fund; . (e) to borrow or raise monies for the purpose of the Trust Fund (except from themselves, the Employer, a fiduciary or any party in interest) in such amount, and upon such terms and conditions as the Trustees deem advisable, and for any sum so borrowed to issue its promissory note as Trustees and secure the repayment thereof by pledging or mortgaging all or any part of the Trust Fund upon such terms and conditions as the Trustees may deem desirable; and no person lending money to the Trustees shall be bound to monitor the application of the money loaned or inquire into the validity, expediency or propriety of any such borrowing; (f) to vote any corporate stock either in person or by proxy for any purpose; to exercise any conversion privilege, subscription right or any other right or option given. to the Trustees as the owner of any asset of the Trust Fund and to make any payments incidental thereto; to consent to, to dissent from and to oppose or take any action in connection with, and receive and retain any securities resulting from any reorganization, consolidation, merger, readjustment of the financial structure, sale, lease or other disposition of the assets of any corporation or other organization, the securities of which may be an asset of the Trust Fund; (g) to organize and incorporate (or participate in the organization or incorporation of) under the laws of any state, a corporation for the purpose of acquiring and holding title to any property which the Trustees are authorized to acquire for the Trust Fund and to exercise with respect thereto any of the powers, rights and duties they have with respect to other assets of the Trust Fund; . (h) to cause any asset of the Trust Fund to be issued, held or registered in its name or in the name of its nominee, or in such form that title will pass by delivery, provided the records of the Trustees shall indicate the true ownership of such asset; and (i) to exercise any of the powers and rights of an individual owner with respect to any property orthe Trust Fund and to perform any 'and all other acts in their judgment necessary or appropriate for the proper administration of the Trust Fund, although such powers, rights and acts are not specifically enumerated in the Trust; provided, however, that the Trustees or discretionary fiduciary shall not enter into any transaction which is prohibited by the Code or the regulations promulgated thereunder. Notwithstanding any other provIsion of the Plan or Trust Agreement, or any agreement between any named fiduciary and Investment Manager, the voting of proxies for securities held by the Trust is the responsibility of the party or parties to whom investment management authority over the securities has been allocated. For Page 8--MONEY PURCHASE PENSION PLAN TRUST . Attachment 3-10 . . . this purpose, investment management authority over securities allocated to Participants' accounts other than the Employer Contribution Accounts shall be deemed to be allocated to the Plan Administrator. Except with respect to securities for which the Trustee has investment management authority, the Trustee is not responsible for the voting of proxies. With respect to securities over which the Trustee does not have investment management authority, the Trustee shall make its best effort to timely deliver proxies to the party which it reasonably believes to have investment management authority over such securities. The Trustee may use agents, including the ADP Financial Information Services, Inc. or its successors or assigns, to effect such delivery. Trustee shall not be responsible to ascertain whether, or how, the proxies were subsequently voted or disposed of and shall bear no liability for the actions or inactions of parties responsible to vote proxies. In the event investment management authority over any securities is transferred from the Trustee to a named fiduciary or Investment Manager, such transfer of authority shall inclwde the transfer of the power and responsibility to vote proxies under that. party's investment management authority, unless the Trustee agrees in writing to retain investment management power and responsibility to vote proxies. 4.4 Appointment of Investment Manager. (a) The Employer, through its Common Council, may appoint one or more Investment Managers (as defined below) to manage and direct the investment of all or any specified portion of the Trust Fund, and which Investment Manager, during the. term and to the extent of such appointment, may direct the Trustees in writing in the exercise of their investment powers. The Employer shall certify in writing the appointment, the id.entity and the discharge of any Investment Manager. (b) Each Investment Manager appointee shall acknowledge in writing the person's or entity's status as a fiduciary with respect to the Plan. (c) The Trustees shall not be liable for the acts or omissions of any such Investment Manager or be under any obligation to invest or otherwise manage any assets of the Trust Fund which are subject to the management of any such Investment Manager, other than as directed by the Investment Manager. (d) The term "Investment Manager" shall mean: :(i) a registered investment adviser under the Investment Advisers Act of 1940; (ii) a bank as defined in the Investment Advisers Act of 1940; or (iii) an insurance company qualified under the laws of more than one state to manage, acquire and dispose of plan assets. 4.5 Trustees' Reliance Upon Counsel and Accountants. The Trustees may consult with counselor accountants (who may be counselor accountants for the Employer) in respect of any of their duties or obligations hereunder arid the opinion of such counsel with. respect to legal matters and of such accountant ;with respect to Page 9--MONEY PURCHASE PENSION PLAN TRUST Attachment 3-11 accounting matters shall be full and complete authorization in respect of any action taken b.y the Trustees in good faith and in accordance therewith. . . Page 10--MONEY PURCHASE PENSION PLAN TRUST . Attachment 3-12 . . . SECTION 5 ACCOUNTS AND REPORTS OF TRUSTEES 5.1 Records and Accounts of Trustees. The Trustees shall maintain accurate and detailed records and accounts of all transactions of the Trust with respect to the Plan, which shall be available at all reasonable times for inspection or audit by any person designated by the Employer and which shall be retained as required by applicable law. ' 5.2 Fiscal Year. The fiscal year of the Trust shall begin on each July 1 and end on the next following June 30. 5.3 Annual Accounting. As of the last day of each fiscal year, the Trustees shall determine for the period then ended the sum of the net earnings or losses of the Trust Fund (including the net adjustments in the value of the Trust FUlild), which shall reflect interest, dividends, the increment on United States of America Savings Bonds and similar securities, gains or losses realized from the sale, exchange or collection of assets, other income received and appreciation or depreciation in the fair market value of assets, administration expenses, taxes and charges paid. To the extent any part of the Trust Fund is invested in a mutual fund, the earnings or losses of the Trust Fund may be deterrnined and allocated by the Plan Administrator in accordance with the procedures established by such mutual fund. The Plan Administrator may approve such account by written notice of approval delivered to the Trustee or by failure to express objections to such account delivered to the Trustee in writing within sixty (60) days from the date upon which the account was delivered to the Plan Administrator. The account shall be deemed approved upon receipt by the Trustee of the Plan Administrator's written approval of the account or upon the passage of the sixty day period of time, except for any matters covered by written objections that have been delivered to the Trustee by the Plan Administrator and for which the Trustee has not given an explanation or made an adjustment satisfactory to the Plan Administrator. 5.4 Annual Reports. If requested by the Employer, the Trustees shall submit an annual written report setting forth such information as may be necessary to enable the Employer to comply with the provisions of the Plan and applicable law, including the time limits contained therein. 5.5 Final Report. In the event that the Trustees shall resign or be removed, the Employer shall each have the right to request, and the Trustees shall submit within a reasonable period of time after such request, a final accounting and report as to the assets and liabilities of the Trust Fund. Page 11--MONEY PURCHASE PENSION PLAN TRUST Attachment 3-13 SECTION 6 SUCCESSION OF TRUSTEE . 6.1 Resignation of Trustee. Any Trustee may resign as a Trustee hereunder at any time upon delivering a written notice of such resignation, to take effect 30 days after the delivery thereof to the Employer (unless the Employer shall accept shorter notice). 6.2 Removal of Trustee. Any Trustee may be removed by the Employer by delivering to the Trustee so removed a copy of a notice of such removal. Such removal shall take effect at the date specified in such notice, which shall not be less than 30 days after delivery of such notice (unless a successor Trustee shall have been earlier appointed by the Employer). 6.3 Aooointment of Successor Trustee. Whenever any Trustee shall die, resign or be removed, the Employer may appoint a successor Trustee. Such appointee may qualify such appointmert by delivering a written acceptance to the Employer. Any such successor Trustee appointed by the Employer may be either an individual or a bank or trust company, as co-trustee or as sole trustee. 6.4. Succession to Trust Fund Assets. The title to all property held hereunder . shall vest in any successor Trustee acting pursuant to the provisions hereof without the execution or filing of any further instrument, but the resigning or removed Trustee shall execute all instruments and do all acts necessary to vest title in the successor Trustee. Each successor Trustee shall have, exercise and enjoy all of the powers, both discretionary and ministerial, herein conferred upon the predecessor Trustee. No successor Trustee shall be obliged to examine or review the accounts, records, and acts of or property delivered by any predecessor Trustee and shall not be responsible for any action or omission to act on the part of any previous Trustee. 0.5 Continuation of Trust. In no event shall the death, legal disability, resignation or removal of all of the Trustees terminate this Trust, but the Employer shall have the duty of forthwith appointing a successor Trustee or Trustees in accordance with Section 6.3 hereof to carry out the terms of this Trust. 6.6 Continuance of Trustees' Powers in Event of Termination of the Trust. In the event of the termination of this Trust, as provided herein, the Trustees shall dispose of the Trust Fund in accordance with the directions of the Plan Administrator. Until the final distribution of the Trust Fund, the Trustees shall continue to have all powers provided hereunder as necessary or expedient for the orderly liquidation and distribution of the Trust Fund. No part of the Trust Fund shall be used for or diverted Page 12--MONEY PURCHASE PENSION PLAN TRUST . Attachment 3-14 . . . into purposes other than the payment of expenses properly chargeable to the Trust Fund and payments of benefits to Plan Participants and their beneficiaries except as provided in Section 2.2. Page 13--MONEY PURCHASE PENSION PLAN TRUST Attachment 3-15 SECTION 7 AMENDMENT OR TERMINATION . 7.1 Amendment to Conform with Law. The Employer reserves the right to a-mend this Trust, retroactively or otherwise, in any manner which its Common Council deems necessary or advisable for the purpose of conforming the Trust to Sections 401 or 501 of the Code, as amended from time to time, or to any other present or future Federal or State law relating to plans or trusts of this or similar nature, or to the regulations promulgated thereunder. 7.2 Other Amendments and Termination. The Employer also reserves the right to amend this Trust at any time in any manner which it deems desirable, including but not by way of limitation to change any provision relating to the distribution or payment, or both, of any assets of this Trust. The Employer further reserves the right to terminate this Trust at any time and for any reason by resolution of its Common Council. 7.3 Form of Action. The termination or amendment of this Trust shall be accomplished by an instrument in writing signed by a duly authorized officer or officers of the Employer certifying that such action has been authorized and directed by resolution of the Common Council of the Employer and filed with the Trustees. . 7.4 Limitations on Amendments. The provisions of this Section are subject to and limited by the following restrictions: (a) Except as otherwise provided in Section 2.2, no amendment shall operate. either directly or indirectly to give the Employer any interest whatsoever in any funds or property held by the Trustees under the terms hereof, or to permit corpus or income of the Trust Fund to be used for or diverted to purposes other than the exclusive benefit of persons who are at any time on or after the date hereof Participants and the beneficiaries of such persons. (b) Except to the extent necessary to produce conformity to the laws and regulations described in Section 7.1, no amendment shall operate either directly or indirectly to deprive any Participant of the nonforfeitable interest in the Participant's accrued benefit as it is constituted at the time of the amendment. (c) No amendment shall operate to cause the merger, consolidation, or transfer of assets or liabilities of this Trust to -any other trust, unless each Participant would (if such other trust were then terminated) receive a benefit immediately after the merger, consolidation or transfer which is not less than the Page 14--MONEY PURCHASE PENSION PLAN TRUST . Attachment 3-16 . . - -, ' Page 15--MONEY PURCHASE PENSION PLAN TRUST Attachment 3-17 SECTION 8 MISCELLANEOUS . 8.1 Controlling Law. To the exteflt not preempted by the laws of the United States of America, the laws of the State of California shall be the controlling state law in matters relating to the administrative powers and duties of the Trustee. However, the laws of the State of Oregon shall be the controlling state law in matters relating to the rights of Participants, beneficiaries, and alternate payees under the Plan. 8.2 Employer Action. Any action required or permitted to be taken by the Employer, except those which the Trust requires to be taken by the Common Council of the Employer, may be taken on behalf of the Employer by any officer of the Employer so authorized. 8.3 Severabilitv. If any provision of the Trust shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but the Trust shall be construed and enforced as if said illegal and invalid provision had never been inserted herein. 8.4 Protection of Persons Dealing with the Trust. No person dealing with the Trustees shall be required or entitled to monitor the application of any money paid or . properly delivered to the Trustees, or determine whether or not the Trustees are acting pursuant to authorities granted to them hereunder or to authorizations or directions herein required. 8.5 Tax Exemptions of Trust. The Trust is hereby designated as constituting a part of a plan intended to qualify under Section 401 (a) and to be tax exempt under Section 501 (a) of the Code. Until advised otherwise, the Trustees may presume that the Trust is so qualified and tax exempt. 8.6 Participants and Beneficiaries to Have No Interest in the Employer by Reason of the Trust. Neither the creation of the Trust nor anything contained in the Trust shall be construed as giving any person or employee of the Employer any equity or interest in the assets, business, or affairs of the Employer. 8.7 Gender and Plurals. Whenever the context requires or permits, the gender and number of words shall be interchangeable. 8.8 Counterparts. The Trust may be executed counterparts, each of whiCh shall be considered an original. in any number of Page 16--MONEY PURCHASE PENSION PLAN TRUST . Attachment 3-18 . . . 8.9 Terms. Each term used herein shall be given a meaning as defined in the Plan unless either express modifying language or the context shall clearly require otherwise. However nothing in the Plan shall be deemed to increase the duties of the Trustees beyond those described in this Trust Agreement. 8.10 Inconsistencv. Anything in the Plan that is inconsistent with this Trust shall not modify the rights and duties of the Trustees under the terms of this Trust Agreement. 8.11 Dispute Resolution. With the consent of the Employer's liability insurance carrier, any dispute under this Agreement shall be resolved by submission of the issue to the American Arbitration Association. Expenses of the arbitration shall be paid as decided by the arbitrator. 8.12 Indemnification. The Employer shall indemnify and hold harmless the Trustee, its officers, employees, and agents from and against all liabilities, losses, Hexpenses; and claims (including reasonable attorneys' fees and costs of defense) arising out of (1) the acts or omissions to act with respect to the Plan by persons unrelated to the Trustee ("unrelated persons"), (2) the Trustee's action or inaction with respect to the Plan resulting from reliance on the action or inaction of unrelated persons, including directions to invest or otherwise deal with plan assets, or (3) any violation by any unrelated person of the provisions of the Internal Revenue Code or the regulations thereunder. The Trustee shall not be entitled to indemnification for any liability arising out of Trustee's negligence or misconduct. Expenses incurred by the Trustee which it believes to be the subject of indemnification under this Agreement shall be paid by the Employer upon the Trustee's request, however, the Trustee will repay such amounts plus interest thereon at the legal rate from the date of such. payment in the event that, in the final decision of arbitrator (or court, if applicable), the expenses are not subject to indemnification hereunder. 8.13 Reservation of Statutory Rights. Nothing herein shall be construed as a waiver of any rights which the Employer may have under the Oregon Tort Claims Act (ORS 30.260-300). EMPLOYER: CITY OF SPRINGFIELD, OREGON Dated: By: City Manager Page 17--MONEY PURCHASE PENSION PLAN TRUST Attachment 3-19 Dated: Dated: TRUSTEE: WELLS FARGO BANK, N.A. By: By: Page 18--MONEY PURCHASE PENSION PLAN TRUST Attachment 3-20 . . .