HomeMy WebLinkAboutItem 04 Retirement Plan Amendment and Restatement
SPRINGFIELD
CITY COUNCIL
Meeting Date:
Meeting Type:
Department:
Staff Contact:
Staff Phone No:
Estimated Time:
July 2, 2007
Regular
Human Resourcesco;t
Ardis Belknap
726-3786
Consent Calendar
AGENDA ITEM SUMMARY
ITEM TITLE: RETIREMENT PLAN AMENDMENT AND RESTATEMENT
ACTION REQUESTED: Adoption of the following resolution:
A RESOLUTION OF THE CITY OF SPRINGFIELD AMENDING AND
REST A TING THE CITY OF SPRINGFIELD, OREGON RETIREMENT
PLAN,
ISSUE STATEMENT: Whether the Retirement Plan should be amended and restated to conform to
agreements previously entered into by the City with Springfield Police
Association (SPA) and nonunion police officers who are active participants in
the Retirement Plan.
ATTACHMENTS: Attachment A - Resolution
Attachment B - City of Springfield, OR Retirement Plan, 2007 Restatement
DISCUSSION:
The Retirement Plan establishes a City-funded credit for SPA and nonunion police officers that causes
the plan benefits to be "equal to or better" (ETOB) than Oregon Public Employees Retirement Plan
Benefits. The City has entered into agreements with SPA, and nonunion police officers who are active
participants in the Retirement Plan, to change their benefits in the Retirement Plan as follows:
. Employees may no longer make voluntary contributions. .
· City-funded credits to the accounts of police officers change from the sliding ETOB amount to a
set 12.8% of Monthly Earnings. City-funded credits to the accounts of SPA members who are not
police officers are reduced by 1 % of Monthly Earnings. These changes apply retroactively to
Monthly Earnings earned after July 31, 2005, but apply only to employees who are active -
participants in the Retirement Plan after June 30, 2006.
· The benefits for six non-sworn employees (Records Keepers and Dispatchers) were reduced by
the above changes. The City agreed with SPA that these employees would not have a reduction in
their benefit if they remained employed at the City for at least the next five years. To offset the
reduction, each year that these six employees are active employees of the City from 2007 through
2011, they will receive an additional City-funded credit specified in the attached Retirement Plan
on Page 14. .
· If an employee terminates after attaining age 50, interest credits will drop from 9% to 6% during
the 2d and 3d years after terminating, to 4% during the 4th and 5th years, and then to 0%. Before
this change, accounts were credited with 9% interest until withdrawn.
· An employee must withdraw the employee's accounts by one year after terminating employment if
the employee terminates before age 50 and by five years after terminating employment if the
employee terminates after attaining age 50. Before this change, an employee was not required to
withdraw the employee's accounts until the year after the employee attained age 70-1/2.
· The above changes to the interest rate and the date by which employees must withdraw their
accounts apply only to employees who actively participate in the Retirement Plan after June 30,
2006.
FINANCIAL
IMP ACT:
Based on these negotiated changes it is calculated that the City will reduce future costs by $1.1 million.
The City is contractually obligated to change benefits as described above.
SPRINGFIELD
NO. 2007-
A RESOLUTION OF THE CITY OF SPRINGFIELD AMENDING AND REST A TING THE
CITY OF SPRINGFIELD, OREGON RETIREMENT PLAN.
WHEREAS, the City of Springfield adopted the May 2005 Restatement of the City of
Springfield, Oregon Retirement Plan (the Retirement Plan); and
WHEREAS, the City of Springfield desires to amend and restate the Retirement Plan as
amended to date;
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Springfield
that the City adopts the 2006 Restatement of the Retirement Plan effective July 1, 2006, and
directs the City Manager to execute the 2006 Restatement.
ADOPTED by the Common Council and approved by the Mayor of the City of
Springfield this 2nd day of July, 2007.
ADOPTED by a vote of
for and
against.
Mayor
ATTEST:
City Recorder
Reviewed and Approved as to Form:
Office of City Attorney
,2007
~ttachment A
RESOLUTION NO. 2007-
CITY OF SPRINGFIELD, OREGON RETIREMENT PLAN
2007 Restatement
Effective July 1, 2007
Adopted July 2, 2007
HERSHNER HUNTER llP
ATTORNEYS
PO Box 1475. Eugene, Oregon 9'{440
541-686-8511
fax 541,344-2025
Attachment B
SECTION 1.
SECTION 2.
SECTION 3.
SECTION 4.
SECTION 5.
SECTION 6.
SECTION 7.
SECTION 8.
SECTION 9.
SECTION 10.
SECTION 11.
SECTION 12.
SECTION 13.
SECTION 14.
SECTION 15.
CITY OF SPRINGFIELD, OREGON RETIREMENT PLAN
Table of Contents
Page
PURPOSE; EFFECTIVE DATE; GOVERNMENTAL PLAN 2
DEFINITIONS 3
ELIGIBILITY AND PARTICIPATION 7
CONTRIBUTIONS 9
CREDITS FOR SERVICE 11
ADDITIONAL BENEFIT TO MATCH PERS BENEFIT INCREASES 17
DISABILITY CREDITS FOR TRANSFERRED PARTICIPANTS 21
VETERANS' REEMPLOYMENT RIGHTS 23
VESTING 25
DISTRIBUTION OF BENEFITS 26
LIMITS ON BENEFITS AND CONSIDERED COMPENSATION 33
RIGHTS AND DUTIES OF PLAN ADMINISTRATOR 36
AMENDMENT; TERMINATION; EXCLUSIVE BENEFIT 38
CLAIMS PROCEDURE 40
MISCELLANEOUS 41
Page i--RETIREMENT PLAN
CITY OF SPRINGFIELD, OREGON RETIREMENT PLAN
PARTY:
CITY OF SPRINGFIELD, OREGON, an Oregon municipality (Employer)
RECITALS:
A. This Plan is a continuation of the City of Springfield, Oregon Retirement Plan last
restated May 2, 2005, and last amended by a First Amendment dated December 27,2005. This Plan
was originally adopted effective May 1, 1963, as the City of Springfield, Oregon Future Service
Plan.
B. The following plans of the Employer are adopted as part of, and incorporated into,
this Plan for the purpose of determining under ORS 237.620(4) whether the Employer provides
retirement benefits to its Public Safety Employees that are equal to or better than the benefits that
would be provided to them under the Oregon Public Employees Retirement System:
1. Death benefit plans and accidental death and dismemberment plans;
2. Health benefit plans (including without limitation medical, dental, and vision
plans);
3. Plans to pay part of retirees' premiums for health care coverage provided
through the Employer, including without limitation plans under a collective bargaining agreement
or personnel policies;
4. Disability income plans; and
5. Plans to cash-out, in connection with termination of employment, all or part
of the value of accrued sick leave, accrued vacation, or other accrued paid time off, including
without limitation plans under a collective bargaining agreement or personnel policies.
No Participant, beneficiary of a Participant, or other person shall acquire a right, contractual or
otherwise, to the benefits provided by the above plans by reason of the above adoption and
incorporation.
Page l--RETIREMENT PLAN
SECTION 1.
PURPOSE; EFFECTIVE DATE; GOVERNMENTAL PLAN
1.1. PURPOSE. The purpose of this Plan is to provide certain of the Employees
of the Employer with funds on their retirement in the form of a cash balance plan.
1.2. EFFECTIVE DATE. This 2007 Restatement is effective July 1,2007.
1.3 . GOVERNMENTAL PLAN. This Plan is intended to be a governmental plan
as defined in IRC Section 414( d).
Page 2--RETlREMENT PLAN
SECTION 2.
DEFINITIONS
2.1. Accounts: The accounts maintained under the Plan for Participants, which
consist of the following accounts:
a. Employee Required Contribution Account: A Participant's account
attributable to required contributions made to the Plan pursuant to the predecessor plan.
b. Employer Additional Contribution Account: A Participant's Employer
Additional Contribution Account described in Section 5.1.
c. Employer Contribution Account: A Participant's Employer Contribution
Account described in Section 5.1. or 7.
d. Pick-up Account: A Participant's Pick-up Account described in Section 5.1.
e. V oluntary Contribution Account: A Participant's Voluntary Contribution
Account described in Section 4.3.
Effective August 1,2005, the then-existing Pick-up Account of each Participant whose Employer
Additional Contribution Account is credited under Section 5.1.a. and who on July 1, 2006, is an
Employee and a SPA Member shall be renamed "Employer Additional Contribution Account." The
Plan Administrator may establish separate subsidiary Accounts as the Plan Administrator deems
appropriate.
2.2. Accrued Benefit: .
a. A Participant's Accrued Benefit consists of the undistributed sum of the
following, as reduced under Section 2.2.b. below:
(1) The balance, if any, as of December 31,1997, of the Participant's
Accounts (which shall include the credited rate of return on those Accounts for the period July 1,
1997, through December 31, 1997, at the applicable rates provided in Section 7.3 as stated
immediately before the January 20, 1998, restatement of the Plan); and
(2) The sum, as of the date benefits are determined under the Plan, of
credits to the Participant's Accounts under Section 5.1. for calendar months after December 31,
1997.
b. For purposes of determining a Participant's Accrued Benefit:
Page 3--RETIREMENT PLAN
(1) The balance, if any, as of December 31, 1997, of each of the
Participant's Employer Additional Contribution Account, Employer Contribution Account, and
Pick-up Account shall be reduced by the amount of contributions (and the attributable credited rate
of return for all periods, whether before 1998 or after 1997) allocated to the Account for the months
described in Section 2.2.b.(2)(a) or 2.2.b.(2)(b) below that occurred before January 1, 1998; and
(2) The sum of credits to each of the Participant's Accounts under Section
5.1. for calendar months after December 31, 1997, shall be reduced by the amount of credits to the
Account under anyone or more of Sections 5.1.a., 5.1.b., 5.1.c., and 5.1.e. (and the attributable
credited rate of return under Section 5.1.d.) for the following months that occur or occurred after
December 31, 1997:
(a) Months on any day of which the Participant IS or was
employed by the Employer in a PERS or OPSRP Eligible Position; and
(b) Months for any part of which the Participant has been
provided, for service with the Employer, i) creditable service, or contributions to the Participant's
member account, under the Oregon Public Employees Retirement System or ii) retirement credit,
or contributions to the Participant's employee account, under the Oregon Public Service Retirement
Plan, including periods for which such creditable service, retirement credit, or contributions are not
provided because of the 600 hours requirement for membership or the six-month waiting period for
membership.
For this purpose, any credit under Section 5.1.a.(6) (about credits for changes to certain Participants'
benefits) as of a June 30 shall be treated as a credit for that June if on that June 30 the Participant
is or was employed by the Employer in a PERS or OPSRP Eligible Position or if that June is a
month described in Section 2.2.b.(2)(b) above.
2.3. 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.
2.4. Early Retirement Age: Fifty years of age for Public Safety Employees and
fifty-five years of age for all other employees, with twenty-five years of service with the City of
Springfield.
2.5. Employee: Any employee of the Employer.
2.6. Employer: CITY OF SPRINGFIELD, OREGON.
2.7. Employment Commencement Date: The first day on which the Employee is
employed by the Employer.
Page 4-- RETIREMENT PLAN
2.8. Insurance Company: For distributions before June 10, 1998, Pacific Life
Insurance Company. For distributions after June 9, 1998, First Colony Life Insurance Company.
2.9.
IRC: The Internal Revenue Code of 1986, as amended.
2.10. Monthly Earnings: Regular salary and wages of the Participant not including
bonuses, overtime pay, or other special allowances or compensation. However, for a Public Safety
Employee, Monthly Earnings means regular salary and wages of the Participant, and overtime pay
and other special allowances and compensation.
2.11. Normal Retirement Age: Fifty-five (55) years of age for Public Safety
Employees and sixty (60) years of age for all other Employees.
2.12. ORS: Oregon Revised Statutes, as amended.
2.13. Oregon Public Employees Retirement System: The retirement system under
ORS chapter 23 8 and excluding the Oregon Public Service Retirement Plan; except that for purposes
of recital B. above "Oregon Public Employees Retirement System" means the retirement system
under ORS chapter 238 and the Oregon Public Service Retirement Plan and for purposes of
Sections 5.1.b. and 5.1.e. "Oregon Public Employees Retirement System" has the same meaning as
the "system" as used in ORS 237.620(4).
2.14. Oregon Public Service Retirement Plan: The pension program under ORS
chapter 238A and the individual account program under ORS chapter 238A or either.
2.15. Participant: Any person who has met the requirements to become a
Participant stated in Section 3.2. and who remains eligible under Section 3.1. to participate in the
Plan, and any individual for whom an Employer Contribution Account' is established under
Section 7.
2.16. PERS or OPSRP Eligible Position: Position eligible for membership in the
Oregon Public Employees Retirement System or the Oregon Public Service Retirement Plan,
determined without regard to the 600 hours requirement for membership and the six-month waiting
period for membership.
2.17. Plan: The Retirement Plan embodied herein.
2.18. Plan Administrator: The Employer named above including any committee
established by it to perform the functions of the Plan Administrator.
2.19.
Plan Name: CITY OF SPRINGFIELD, OREGON RETIREMENT PLAN.
2.20.
of June.
Plan Year: Each consecutive twelve (12) month period ending on the last day
Page 5--RETIREMENT PLAN
2.21. Policy: Group Retirement Policy G-9214 issued to the Employer by Pacific
Life Insurance Company or any other policy or policies purchased by the Employer to provide
benefits under the Plan:
2.22. Public Safety Employee: A firefighter or police officer as those terms are
defined in ORS 237.610.
2.23.
is rehired.
Reemployment Commencement Date: The first day on which the Participant
2.24. Severance of Employment: Permanent termination of employment for any
cause, whether at the request ofthe Employer or the Employee.
2.25. SPA Member or a SPA Member: Included in the collective bargaining unit
represented by Springfield Police Association.
2.26. Tier One Participant: A Participant who is both an Employee and a SPA
Member on any date after June 30, 2006, or who on July 1,2006, is (1) an Employee, (2) a police
officer, as that term is defined in ORS 237.610, (3) not a SPA Member, and (4) not employed by the
Employer in a PERS or OPSRP Eligible Position. A Participant who is a Tier One Participant will
remain a Tier One Participant for all future periods. For example, assume that a Participant is both
an Employee and a SPA Member on July 1,2006, and that on July 1,2008, the Participant ceases
to be a SPA Member and continues as an Employee until June 30, 20 I O. The Participant is a Tier
One Participant for all periods after June 30, 2006.
2.27. Trust: The separate Trust Agreement providing a funding mechanism for the
Plan.
2.28. Trust Fund: The assets held under the Trust.
2.29. Trustee: The Trustee under the Trust Agreement.
Page 6--RETIREMENT PLAN
SECTION 3.
ELIGIBILITY AND PARTICIPATION
3.1. PERSONS ELIGIBLE TO PAR TICIP ATE. The following persons are
eligible to participate in the Plan:
a. The following Employees while employed full-time by the Employer (as
determined in the Employer's sole discretion):
(1) Employees who are SPA Members and who were last hired by the
Employer before April 1, 1996, and are not employed by the Employer in a PERS or OPSRP
Eligible Position.
(2) Police officers, as that term is defined in ORS237.6l0, who are not
SPA Members and are not employed by the Employer in a PERS or OPSRP Eligible Position.
b. The following former Employees who have a Disability, but only with respect
to the crediting provided (a) in Section 5.I.a. to the former Employees' Employer Contribution
Accounts for the period described in Section 5 .I.c. and (b) in Section 5 .I.d.:
(1) Any former Employee who immediately before the former Employee's
last Severance of Employment was a Participant in the Plan and was described in Section 3.I.a.
above.
(2) Any former Employee who as of December 31,1997, qualified for
credits under Section 4.6 as stated immediately before the January 20, 1998, restatement of the Plan.
c. Individuals for whom Employer Contribution Accounts are established under
Section 7., but only with respect to the crediting provided (a) in Section 7. to the individuals'
Employer Contribution Accounts for the periods described in Section 7. and (b) in Section 5.I.d.
d. Any former Employee who has transferred to another public employer and
has elected under ORS 236.620, as in effect with respect to the Employee, to continue to participate
under this Plan, but only for the period allowed by ORS 236.620 as in effect with respect to the
Employee.
e. Any person who is not eligible to participate in the Plan under Section 3.I.a.,
3 .l.b., 3 .l.c., or 3 .I.d. above and who has an Accrued Benefit, but only with respect to the crediting
provided in Section 5.I.d.
f. No leased employee, as defined In IRC Section 414(n), IS eligible to
participate in the Plan.
Page 7-- RETIREMENT PLAN
3.2. WHEN PARTICIPATION BEGINS. An Employee who is eligible to
participate in the Plan shall become a Participant on the first day of the calendar month coincident
with or next following the date on which the Employee completes six (6) consecutive months of
employment with the Employer measured from the Employee's Employment Commencement Date
(or from the Employee's Reemployment Commencement Date, ifthe Employee incurs a Severance
of Employment and is rehired). However, a Participant who incurs a Severance of Employment and:
,
a. Is rehired and has an Accrued Benefit under the Plan when rehired shall, if
eligible to participate in the Plan, become a Participant as ofthe date ofthe rehire; or
b. Is reinstated to the Participant's position as a matter oflegal right or is recalled
consistent with Employer policies, shall for the purpose of this Section 3.2. have the period between
the Participant's Severance of Employment and reinstatement or recall treated as a period of
employment with the Employer.
3.3. NOTICE TO ELIGIBLE EMPLOYEES. The Employer shall notify all
Employees who are eligible to participate in the Plan and shall provide or make available to them
a form of designation of beneficiary and an enrollment form.
Page 8--RETIREMENT PLAN
SECTION 4. f
CONTRIBUTIONS
4.1. ADMINISTERED ON PLAN YEAR BASIS. This Plan shall be administered
on a Plan Year basis.
4.2. EMPLOYEE FUNDED PICK-UP CONTRIBUTIONS; EMPLOYER
CONTRIBUTIONS.
a. Effective for Monthly Earnings earned after June 30, 1999, which shall
include paid leave taken after June 30, 1999, each Participant not included in a collective bargaining
. unit represented by Springfield Police Association or International Association of Firefighters Local
No. 1395 shall contribute six percent (6%) of the Participant's Monthly Earnings to the Plan, which
shall be credited to the Participant's Pick-up Account as (i) part of the seven percent (7%) of the
Participant's Monthly Earnings to be credited to the Participant's Pick-up Account as provided in
Section 5.1.a.(1) or (ii) the six percent (6%) ofthe Participant's Monthly Earnings to be credited to
the Participant's Pick-up Account as provided in Section 5.l.a.(3). However, on behalf of each such
Participant, the Employer will pick up the Participant's required six percent (6%) contribution.
(1) Such contributions are deemed to be "picked up" for purposes ofIRC
Section 4l4(h)(2) ("pick-up contributions").
(2) Such pick-up contributions shall not relieve such Participants of the
obligation to contribute six percent (6%) of their Monthly Earnings. Such pick-up contributions
shall be made on a compensation reduction basis, so that each such Participant's compensation
remaining after the pick-up contribution shall be as reduced by the amount of the pick-up
contribution.
(3) Such Participants' compensation reported on Form W-2 for income
tax purposes shall be as reduced by the amount of such pick-up contributions.
The Employer reserves the right to require that the amount to be credited to such a Participant's
Employer Additional Contribution Account be funded pursuant to a salary reduction arrangement,
and the amount shall be so funded to the extent required in such an arrangement.
b. The Employer shall at least annually contribute tothe Plan the additional
amounts, if any, required to fund the benefits provided under the Plan, other than the benefits
provided under Section 6. that have not been distributed, as determined at least annually by the
Plan's actuary. .
c. Any former Employee eligible to participate in this Plan as provided in
Section 3.1.d. shall contribute six percent (6%) of the Participant's Monthly Earnings to the Plan as
provided in Section 4.2.a. if and only if the Employee was requi~ed to make such contribution
Page 9--RETIREMENT PLAN
immediately before the Employee's transfer described in ORS 236.610. The employer of any former
Employee eligible to participate in this Plan as provided in Section 3 .I.d. shall contribute to the Plan
the additional amounts, if any, required to fund the benefits provided under the Plan with respect to
the former Employee, as determined from time to time by the Plan Administrator.
4.3. EMPLOYEE VOLUNTARY CONTRIBUTIONS. AnyParticipantmaymake
voluntary contributions to the Plan for any calend.ar month, not to exceed 10% of the Participant's
Monthly Earnings for the month. However:
a. A Participant may not make voluntary contributions to the Plan for any month
on any day of which the Participant is employed by the Employer in a PERS or OPSRP Eligible
Position; and
b. No Participant may make voluntary contributions to the Plan on or after the
effective date of this 2007 Restatement.
The contributions shall be credited to the Participant's Voluntary Contribution Account. Within
thirty (30) days after the end of each Plan Year or at any time immediately before benefits are to be
distributed pursuant to Section 10., a Participant may withdraw, by submitting written notice to the
Plan Administrator, the amount of the Participant's Voluntary Contribution Account. The Plan
Administrator shall distribute the Voluntary Contribution Account to the Participant within thirty
(30) days after receiving the written notice.
4.4. DEPOSIT OF CONTRIBUTIONS. Contributions shall be added to the Policy
or to the Trust Fund as determined by the Employer.
Page 10nRETIREMENT PLAN
SECTION 5.
CREDITS FOR SERVICE
5.1. CREDITS AFTER 1997. For periods after December 31, 1997, Participants'
Accounts shall be credited only as provided in this Section 5.1., Section 4.3., or Section 7.
a. (1) FOR MONTHLY EARNINGS AFTER 1997 AND BEFORE
AUGUST 2005. For each calendar month after December 31, 1997, and before August 1,2005,
there shall be credited to each Participant's Employer Contribution Account and Pick-up Account
the following percentages of the Participant's Monthly Earnings for that month:
.lfthe Participant is described
in a row in this column:
A full-time Public Safety
Employee
A full-time Employee who is
a Police Dfspatcher or
Property Controller
A full-time Employee who is
not a Public Safety Employee,
Police Dispatcher, or Property
Controller
Credit to the Participant's
Employer Contribution
Account the percentage
stated in the corresponding
row in this column:
Credit to the Participant's
Pick-up Account the
percentage stated in the
corresponding row in this
colulfln:
7%
The percentage in Section
5.1.b.
10%
7%
7%
7%
(2) SPECIAL RULE FOR A PARTICIPANT WHO WAS NOT AN
EMPLOYEE ON JULY 1, 2006. Section 5.1.a.( 1) above will be applied to a Participant who was
not an Employee on July 1,2006, by replacing "AUGUST 2005" with "JULY 2006" and replacing
"August 1,2005" with "July 1,2006".
(3) FOR MONTHLY EARNINGS AFTER JULY 2005. For each
calendar month after July 31, 2005, there shall be credited to each Participant's Employer
Page 11--RETIREMENT PLAN
Contribution Account, Employer Additional Contribution Account, and Pick-up Account the
following percentages of the Participant's Monthly Earnings for that month, but only if the
Participant was an Employee on July 1,2006.
Credit to the
Participant's
Employer
Contribution Account
the percentage stated
in the corresponding
row in this column:
If the Participant is
described in a row in
this column:
Credit to the
Participant's
Employer Additional
Contribution Account
the percentage stated
in the corresponding
row in this column:
Credit to the
Participant's Pick-up
Account the
percentage stated in
the corresponding
row in this column:
A full-time Public 12.8%
Safety Employee
who is eligible to
participate in the
Plan by reason of
Section 3.l.a.(l)
(about SPA
Members)
A full-time Public 12.8%
Safety Employee
who is eligible to
participate in the
Plan by reason of
Section 3.1.a.(2)
(about non-union
. police officers):
A full-time 10%
Employee who is a
Police Dispatcher or
Property Controller
A full-time 7%
Employee who is not
a Public Safety
Employee, Police
Dispatcher, or
Property Controller
6%
0%
6%
6%
0%
6%
0%
0%
(4) TRANSITION RULE FOR DISABLED PARTICIPANTS. Despite
the above provisions of this Section 5 .1.a., credits pursuant to Section 5 .l.c. (about disability credits)
to the Employer Contribution Account of a Participant whose date of Disability and Severance of
Employment both occur after June 30, 1990, and before July 1,2006, and who was classified as a
Public Safety Employee as of the date of the Disability, shall be at the percentage in Section 5.I.b.
as of the date of the Disability.
Page 12--RETIREMENT PLAN
(5) APPLICABLE RULES.
(a) STATUS AS A FULL-TIME EMPLOYEE. Whether a
Participant is'a full-time Employee shall be determined in the Employer's sole discretion.
(b) PARTICIPANTS INELIGIBLE. Participants shall be
ineligible for the crediting provided in this Section 5 .l.a. to the extent provided in Section 3.1.
(c) PARTICIPANT SUBJECT TO ORS 236.620. Any Participant
described in Section 3 .1.d. shall be treated as described in the row in the first column of the above
tables that the Plan Administrator determines is appropriate for the Participant under ORS 236.620.
If a Participant was entitled by reason of ORS 236.620 to credits under this Section 5 .l.a. for July
2005:
(i) Credits under this Section 5.I.a. to which the
Participant is entitled by reason ofORS 236.620 for calendar months after July 31, 2005, will be
made as provided in Section 5.1.a.(1) above and not as provided in Section 5.1.a.(2) or 5.1.a.(3)
above; and
(ii) Section 5.1.a.(1) above will be applied to the
Participant by deleting both "AND BEFORE AUGUST 2005" and "and before August 1,2005,"
therefrom.
(d) MONTHLY EARNINGS FOR JULY AND AUGUST 2005.
This 5.1.a.(5)(d) applies to any Participant who is entitled to credits under Section 5.1.a.(1) for the
Participant's July 2005 Monthly Earnings and under Section 5.1.a.(3) for the Participant's August
2005 Monthly Earnings. The Participant's Monthly Earnings for July 2005 are the Participant's
Monthly Earnings earned for the payroll period July 1,2005, through July 31, 2005 (with a regular
payday of August 5, 2005). The Participant's Monthly Earnings for August 2005 are the
Participant's Monthly Earnings earned for the payroll period August I, 2005, through August 31,
2005 (with a regular payday of September 5, 2005).
(6) FOR CHANGES TO CERTAIN PARTICIPANTS' BENEFITS.
Pursuant to paragraph 5 of the Memorandum of Agreement between the Employer and Springfield
Police Association for the term July 1,2006, through June 30,2008, relating to Article 20 of the
collective bargaining agreement between them for that term, and also pursuant to agreements
between the Employer and each Participant named below who is not covered by that Memorandum
of Agreement, the following amounts shall be credited to the following Participants' Employer
Additional Contribution Accounts, except that this credit as of any June 30 will be made only if on
Page I3--RETIREMENT PLAN
that June 30 the Participant (a) is a full-time Employee and either a SPA Member or a Public Safety
Employee and (b) is not employed by the Employer in a PERS or OPSRP Eligible Position:
Amount to credit as June 30 afthis calendar year
Participant 2007 2008 2009 2010 2011
Sharon Ransdell $2,376 $2,566 $2,771 $2,993 $3,233
Kimberly Charboneau $2,376 $2,566 $2,771 $2,993 $3,233
Suzanne Cushman $3,888 $4,199 $4,535 $4,898 $5,290
Tracy Neal $3,888 $4,199 $4,535 $4,898 $5,290
Monica Hildebrand $4,104 $4,432 $4,787 $5,170 $5,583
Dawn Hansen $4,320 $4,666 $5,039 $5,442 $5,877
Such credit as of any June 30 is in addition to such credit as of any prior June 30. For example, if
. Sharon Ransdell becomes entitled to such credit as of June 30 of each of 2007 through 2011, her
total such credit will be $13,939.
b. ETOB PERCENTAGE. The percentage in this Section 5.1.b. is the additional
percentage required to cause the retirement benefits provided by the Employer to Participants who
are Public Safety Employees to be "equal to or better than" the benefits which would be provided
to them under the Oregon Public Employees Retirement System. Such determination of
comparability shall be made by the Plan's actqary, giving consideration to all employee benefits
provided to Public Safety Employees by the Employer and not limited to benefits provided under
the Plan.
c. DISABILITY CREDITS. If a Participant suffers or suffered a Disability
before attaining age sixty (60) and while an Employee and while not employed by the Employer in
a PERS or OPSRP Eligible Position, the crediting provided in Section 5.1.a. to the Participant's
Employer Contribution Account for the periods described below in this Section 5 .I.c. shall be based
on the Participant's Monthly Earnings, and the crediting percentage rate provided in Section 5.1.a.
to the Participant's Employer Contribution Account, as of the date of the Disability and shall be
made for the period beginning on the date the Employee is determined to have a Disability and
terminating on the earliest of:
(1) The date the Participant attains age sixty (60); or
(2) The date of the Participant's death; or
(3) The date the Employee is no longer suffering a Disability.
For purposes of the Plan, a Participant's "Accrued Benefit pursuant to Section 5.1.c." means the
Participant's (a) credits provided in Section 5.1.a. to the Participant's Employer Contribution
Page 14:-RETIREMENT PLAN
Accountpursuant to this Section 5.l.c. and the credits thereon provided in Section 5.l.d. and (b)
credits under Section 4.6 as stated immediately before the January 20, 1998, restatement of the Plan
and the credited rate of return thereon through December 31,1997, as provided in Section 7.3 as
stated immediately before the January 20, 1998, restatement of the Plan and in Section 2.2.a.(1).
d. CREDITED RATE OF RETURN.
(1) GENERAL RULE. Except as provided in this Section 5.1.d., as of
the last day of each Plan Year there shall be cred ited to each of the Accounts of each Participant a
rate of return of nine percent (9%) per annum.
(2) FOR TIER ONE PARTICIPANTS, STARTING ONE YEAR AFTER
SEVERANCE. The credited rates of return provided in this Section 5.l.d.(2) apply to Tier One
Participants and apply to the calendar month that includes the first annual anniversary of the
Participant's Severance of Employment and to all later periods, but do not apply to a Participant's
Accrued Benefit pursuant to Section 5.1.c.
(a) SEVERANCE BEFORE 50TH BIRTHDA Y. If the
Participant's Severance of Employment occurs before the Participant's fiftieth (50th) birthday, the
credited rate of return is zero percent (0%) per annum. For example, if the Participant's Severance
of Employment occurs on July 28, 2007, and before the Participant's fiftieth (50th) birthday, the rate
of return credited to the Participant's Accounts will be zero percent (0%) per annum beginning on
July 1,2008.
(b) SEVERANCE ON OR AFTER 50TH BIRTHDAY. If the
Participant's Severance of Employment occurs on or after the Participant's fiftieth (50th) birthday,
the credited rate of return is six percent (6%) per annum for the first twenty-four (24) calendar
months after such last calendar month, four percent (4%) per annum for the next twenty-four (24)
calendar months, and zero percent (0%) per annum thereafter. For example, if the Participant's
Severance of Employment occurs on July 28, 2007, and on or after the Participant's fiftieth (50th)
birthday, the rate of return credited' to the Participant's Accounts will be six percent (6%) per annum
from July 1,2008 through June 30, 2010; four percent (4%) per annum from July 1,2010 through
June 30, 2012; and zero percent (0%) per annum for all periods after June 30, 2012.
(3) FOR POST-JUNE 30, 1994, CREDITS FOR CERTAIN
PARTICIPANTS. Except as provided in Section 5.l.d.(2) above and Section 5.l.d.(4) below, the
credited rate of return shall be eight percent (8%) per annum on the portion of any Participant's
Accounts that is attributable to allocations or credits made as of dates after June 30, 1994 (and the
credited rate of return thereon), for Monthly Earnings earned by the Participant as neither a Public
Safety Employee nor as an Employee represented by Springfield Police Association.
(4) FOR ACCOUNTS UNDER SECTION 7. The credited rate of return
shall be seven percent (7%) per annum on Employer Contribution Accounts established under
Section 7.
.\
I
Page 15--RETIREMENT PLAN
(5) FOR PLAN YEAR ENDING ruNE 30, 1998. For the Plan Year
ending June 30, 1998, the credited rate of return under this Section 5 .1.d. shall be made only for the
period January 1, 1998, through June 30, 1998, and shall not accrue on the portion of the Account
that consists of the credited rate of return on the Account for the period July 1, 1997, through
December 31,1997, as provided in Section 2.2.a.(l).
(6) FOR DISTRIBUTED AMOUNTS. Any portion of a Participant's
Accounts distributed to the Participant also shall be credited as provided in this Section 5.1.d.
through the last calendar month ending before the date of the distribution.
e. BENEFIT INCREASES TO SATISFY ETOB REQUIREMENT. If an
actuary for the Oregon Public Employees Retirement Board informs the Employer, in connection
with a determination by PERB under ORS 237 .620( 4) of whether the Employer provides retirement
benefits to its police officers and firefighters that are equal to or better than the benefits that would
be provided to them under the Oregon Public Employees Retirement System, that the Employer will
fail to comply with the requirements ofORS 237.620(4) unless the Employer provides increased
retirement benefits, the Employer will determine whether the increased retirement benefits will be
provided by (1) increasing the credited rate of return on any part of one or more Accounts,
(2) increasing Employer-funded credits (other than the credited rate of return) to one or more
Accounts, or (3) a combination of both, and the Employer will amend the Plan to reflect this
determination by the Employer.
Page 16--RETIREMENT PLAN
SECTION 6.
ADDITIONAL BENEFIT TO MATCH PERS BENEFIT INCREASES
6.1. PURPOSE. This Section 6. implements the requirement that the Employer
provide increases in benefits for certain Public Safety Employees that are equal to or the actuarial
equivalent of certain increases in benefits under Oregon Public Employees Retirement System
granted in 1991 and 1995 to certain police officers and firefighters. That requirement and those
increases are provided in ORS 237.635 and 237.637 and in 1991 Oregon Laws chapter 796 and 1995
Oregon Laws chapter 569.
6.2. EXTENT OF BENEFIT. This Section 6. applies to, and only to, the Eligible
Payments of the Eligible Portion of the Accrued Benefit of an Eligible Employee.
a. Eligible Payments are all payments made after December 31, 1990, other
than:
(1) Payments that would have been made before January 1, 1991, but for
the Employee's or beneficiary's election to defer distribution, as determined in the discretion of the
Plan Administrator.
(2) Payments with respect to an Eligible Employee whose last Severance
of Employment occurred before January 1, 1991, other than periodic payments made under an
annuity contract purchased from the Insurance Company. Whether a payment is periodic shall be
determined in the discretion of the Plan Administrator.
b. The Eligible Portion is the part of the Accrued Benefit attributable to
allocations or credits made with respect to employment as a Public Safety Employee and the credited
rate of return thereon, but excluding any part of the Accrued Benefit attributable to the Participant's
Voluntary Contribution Account. However:
(1) With respect to Accrued Benefit the distribution of which is deferred
at the Employee's election, the Eligible Portion excludes earnings credited for periods after the
calendar month in which occurred or occurs the latter of the Employee's Severance of Employment
and the date the Employee attains age 50 (including periods after the Employee is rehired except,
if the Employee again becomes a Public Safety Employee before the Employee attains age 50,
periods after the Employee again becomes a Public Safety Employee).
(2) With respect to Accrued Benefit the distribution of which is deferred
at the beneficiary's election, the Eligible Portion excludes earnings credited for periods after the
calendar month in which occurred or occurs the Employee's death.
c. An Eligible Employee is any Employee who before July 14, 1995, was a
Participant in this Plan as a Public Safety Employee and whose last Severance of Employment
Page 17 --RETIREMENT PLAN
-:J
occurred or occurs while the Employee is a Public Safety Employee and either occurred before
January 1, 1991, for a reason other than the Employee's death or occurred or occurs after
December 31, 1990, for any reason.
6.3. DISTRIBUTION OF BENEFIT. Upon distribution of an Eligible Employee's
Accrued Benefit in a calendar year in which distributions under this Plan are not exempt from
Oregon personal income taxation, the amount of the distribution shall be increased by the greater
of the following amounts:
a. The amount determined by multiplying the Eligible Payments ofthe Eligible
Portion of the Employee's Accrued Benefit by the following percentage:
If the Employee's months of participation at
the Employee's last Severance of Employment
are:
The percentage is:
Less than 120
At least 120 but not 240
At least 240 but not 300
300 or more
o percent
1 percent
2-1/2 percent
4 percent
b. The amount determined by multiplying the Eligible Payments ofthe Eligible
Portion of the Employee's Accrued Benefit by the percentage determined under the following
formula:
(0/.91) -1) x the Employee's months of participation before October L ]991
the Employee's months of participation
For purposes of this Section 6.3., the Employee shall be credited with a month of participation for
each calendar month for which a contribution was made, or for which a credit under Section 5.l.a.
is made, on behalf of the Employee as a Public Safety Employee to the Employee's Employer
Contribution Account. However, months of participation shall not be credited for months for which
credits are made under Section 5 .l.a. by reason of Section 5 .l.c. or were made under Section 4.6 as
stated immediately before the January 20, 1998, restatement of the Plan.
6.4.
ALTERNATE PAYEES. Despite Section 6.3. above:
a. The amount by which the distribution to an alternate payee is to be increased
shall not be determined or paid before the Employee's Severance of Employment;
b. No increase shall be paid (even after the Employee's Severance of
Employment) with respect to a lump sum distribution (including a direct rollover) made to an
alternate payee before the Employee's Severance of Employment; and
Page 18--RETIREMENT PLAN
c. The amount of the increase in the distribution to an alternate payee with
respect to distributions previously made shall be distributed in the following forms, without interest
for delayed payment:
(1) In a lump sum distribution if the benefit is attributable to monthly
payments previously made under an annuity.
(2) As a supplement to the annuity if the increase is attributable to
monthly payments to be made in the future under a previously started annuity.
6.5. ADJUSTMENT FOR CHANGES IN TAX RATE. The decimal.91 in the
formula in Section 6.3.b. shall automatically be adjusted as provided in this Section 6.5. to reflect
changes in the maximum Oregon personal income tax rate imposed upon individuals who are full-
year residents of Oregon. An increase in such rate by x percentage points shall cause such decimal
to be reduced by x 100ths, and a reduction in such rate by x percentage points shall cause such
decimal to be increased by x 100ths. For example, following are the decimals that correspond to
particular rates:
If the rate is:
7 percent
8 percent
9 percent
10 percent
11 percent
The decimal is:
.93
.92
.91
.90
.89
Any such change in the decimal shall be effective only for distributions made on or after the
effective date of the change in such rate. No amount distributed to a Participant or beneficiary
before the change is implemented may be recovered from any person or offset against any
undistributed benefit of any person to account for any such change.
6.6. FUNDING. The benefits provided in this Section 6. shall be funded first from
the assets ofthe Plan and, ifthe assets are inadequate, from contributions by the Employer made by
the time the benefits are to be distributed.
6.7. INTEGRATION WITH PERS. The benefits provided under this Section 6.
shall not apply with respect to any portion of an Eligible Employee's Accrued Benefit transferred
to the Oregon Public Employees Retirement System or the Oregon Public Service Retirement Plan
or the payment of which is assumed or made by the Oregon Public Employees Retirement System
or the Oregon Public Service Retirement Plan.
6.8. CHANGE OF BENEFIT. The benefits provided under this Section 6. may
be reduced, eliminated, or changed by amendment of this Plan, with respect to service performed
before or after the amendment:
Page 19--RETIREMENT PLAN
a. To the extent a court of competent jurisdiction determines that the Employer
is not required to implement one or more of the provisions ofORS 237.635 and 237.637,1991
Oregon Laws chapter 796, and 1995 Oregon Laws chapter 569 that by their terms apply to the
Employer.
b. To the extent a court of competent jurisdiction or the Employer determines
that any of the benefits, or the aggregate benefits, provided under this Section 6. are more than is
required to implement the provisions ofORS 237.635 and 237.637, 1991 Oregon Laws chapter 796,
and 1995 Oregon Laws chapter 569.
c. As the Employer determines appropriate to respond to any law modifying any
requirement ofORS 237.635 and 237.637, 1991 Oregon Laws chapter 796, and 1995 Oregon Laws
chapter 569. '
The Employer also may by amendment of this Plan change the manner in which the Employer
implements the requirement described in Section 6.1. with respect to service performed before or
after the amendment, even though such change may reduce or eliminate the benefits provided under
this Section 6. for all or some Employees.
Any such benefits that are reduced, eliminated, or changed after they have been distributed may not
be recovered from any person or offset against any undistributed benefit of any person to account
for any such reduction, elimination, or change.
Page 20nRETIREMENT PLAN
SECTION 7.
DISABILITY CREDITS FOR TRANSFERRED PARTICIPANTS
7.1. TRANSFERRED ACCOUNTS. Any amount transferred to this Plan under
Section 1 0.2.f.(1) of the September 2002 Restatement of the City of Springfield, Oregon Money
Purchase Pension Plan (providing for the transfer to this Plan of participants' accrued benefit
pursuant to Section 4.5. of such Pension Plan) shall be credited, as of the date it is received by this
Plan, to the Employer Contribution Account under this Plan in the name of the participant in such
Pension Plan whose accrued benefit is so transferred to this Plan.
7.2.
DISABILITY CREDITS.
a. In the case of any individual who was entitled under Section 4.5. of such
Pension Plan to a contribution in August 2002 for July 2002, there shall be credited to an Employer
Contribution Account under this Plan in the name of the individual, for each calendar month
provided in this Section 7.2.a., seven percent (7%) of the individual's Monthly Earnings as of the
date the individual became Disabled. For this purpose, Charlotte Green's Monthly Earnings as of
the date she became Disabled shall be the amount her Monthly Earnings would have been for June
2001 if she had been employed full-time by the Employer duringthat month in her posit,ion with the
Employer during that month. Such crediting shall be made for each calendar month beginning after
July 31,2002, and before the earliest of:
(1) The date the individual attains age sixty (60);
(2) The date of the individual's death; or
(3) The date the individual is no longer Disabled.
The amount of such credit for the last such calendar month shall be prorated based on the number
of days in such calendar month before the event described above ending the individual's right to such
credit.
b. If a participant or former participant in such Pension Plan:
(1) Becomes Disabled prior to attaining age sixty (60) as a result of an
illness or injury that occurred before April 1,2002;
(2) Is not entitled to credits under Section 7.2.a. above;
(3) Does not become a member of the Oregon Public Employees
Retirement System (PERS) under an integration contract entered into in 2002 between the Employer
and the Oregon Public Employees Retirement Board (on behalf ofPERS) pursuant to the provisions
of Oregon Revised Statutes 238.035 and ORS 238.680; and
Page 21--RETIREMENT PLAN
(4) Would be entitled to contributions under Section 4.5. of such Pension
Plan but for Section 10.2.b. of the September 2002 Restatement of such Pension Plan (providing for
cessation of such contributions for periods after July 31, 2002),
there shall be credited to an ~mployer Contribution Account to be established for the participant,
for each calendar month provided in this Section 7.2.b., seven percent (7%) of the participant's
Monthly Earnings as of the date the participant became Disabled. Such crediting shall be made
during the period commencing on the date the participant is determined to be Disabled and
terminating on the earliest of:
(a) The date the participant attains age sixty (60);
(b) The date of the participant's death; or
(c) The date the participant is no longer Disabled.
The amount of such credit for the last such calendar month shall be prorated based on the number
of days in such calendar month before the event described above ending the participant's right to
such credit.
c. For purposes of this Section 7.2. and Section 13.1.b.(3), an individual is
"Disabled" ifthe individual suffers a condition of mind or body resulting from illness or injury that
permanently and wholly prevents the individual from performing any occupation for which the
individual is reasonably suited by education or training. In determining whether an individual is
Disabled, the Plan Administrator may rely upon the certification of a medical examiner satisfactory
to the Employer to the effect that the individual is Disabled. In determining whether an individual
is Disabled and the administration ofthis definition, the Employer and the Plan Administrator shall,
to the fullest possible extent, afford similar treatment to all individuals who are similarly situated.
d. For purposes of the Plan, a Participant's "Accrued Benefit pursuant to
Section 7." means the Participant's credits provided in this Section 7. to the Participant's Employer
Contribution Account and the credits thereon provided in Section5.l.d.
Page 22--RETIREMENT PLAN
SECTION 8.
VETERANS' REEMPLOYMENT RIGHTS
8.1. APPLICATION AND DEFINITION. This Section 8. applies despite any
other provision of this Plan. For purposes of this Section 8., qualified military service means any
service in the uniformed services (as defined in chapter 43 of title 38, United States Code ("Chapter
43")) by any individual if the individual is entitled to reemployment rights under Chapter 43 with
respect to such service.
8.2. SERVICE, BENEFIT, AND CONTRIBUTION REQUIREMENTS. The
Employer shall be treated as meeting the requirements of Chapter 43 only if each of the following
requirements is met:
a. An individual reemployed under Chapter 43 is treated with respect to this Plan
as not having incurred a break in service with the Employer by reason of the individual's period of
qualified military service.
b. Each period of qualified military service served by an individual is, upon
reemployment under Chapter 43, deemed with respect to this Plan to constitute service with the
Employer for the purpose of determining the accrual of benefits under this Plan.
c. An individual reemployed under Chapter 43 is entitled to accrued benefits that
are contingent on the making of, or derived from, employee contributions only to the extent the
individual makes payment under this Plan with respect to the employee contributions.
(1) No such payment may exceed the amount the individual would have
been permitted or required to contribute had the individual remained continuously employed by the
Employer throughout the period of qualified military service.
(2) Any payment under this Plan shall be made during the period
beginning with the date of reemployment and whose duration is 3 times the period of the qualified
military service (but not greater than 5 years).
8.3. ALLOCATION OF EARNINGS. No provision of Chapter 43 or this
Section 8. shall be construed as requiring any crediting of earnings to an Employee with respect to
any contribution before the contribution is actually made.
8.4. YEAR TO WHICH CONTRIBUTION LIMITS APPLY. If any contribution
is made by an Employee under this Plan and the contribution is required by reason of the Employee's
rights under Chapter 43 resulting from qualified military service:
a. The contribution shall not be subject to any otherwise applicable limitation
in IRC Section 415 and Section 11., and shall not be taken into account in applying those I imitations
Page 23--RETIREMENT PLAN
to other contributions or benefits under this Plan or any other plan, for the year in which the
contribution is made.
b. The contribution shall be subject to the limitations in IRC Section 415 and
Section 11. for the year to which the contribution relates (in accordance with rules prescribed by the
Secretary of the Treasury).
For purposes ofthis Section 8.4., any employee contribution made under Section 8.5. shall be treated
as required by reason of the Employee's rights under Chapter 43.
8.5. MAKE-UP OF EMPLOYEE CONTRIBUTIONS. Ifan Employee is entitled
to the benefits of Chapter 43 with respect to employee contributions under this Plan, the Employer
shall be treated as meeting the requirements of Chapter 43 with respect to the employee
contributions only ifthe Employer permits the Employee to make additional employee contributions
under this Plan (in the amount determined under Section 8.6. or such lesser amount as is elected by
the Employee) during the period that begins on the date' of the reemployment ofthe Employee with
the Employer and has the same length as the lesser of:
a.
such rights; and
The product on and the period of qualified military service that resulted in
b.
5 years.
8.6. LIMITS ON MAKE-UP OF EMPLOYEE CONTRIBUTIONS. The amount
determined under this Section 8.6. is the maximum amount of the employee contributions that the
Employee would have been permitted to make under this Plan in accordance with the limitations in
IRC Section 415 and Section 11. during the period of qualified military service ifthe Employee had
continued to be employed by the Employer during such period and received compensation as
determined under Section 8.7. Proper adjustment shall be made to the amount determined under the
preceding sentence for any employee contributions actually made during the period of such qualified
military service.
8.7. DEEMED COMPENSATION DURING QUALIFIED MILITARY
SERVICE. For purposes ofIRC Section 4I5(c)(3) and Section I1.1.c., an Employee who is in
qualified military service shall be treated as receiving compensation from the Employer during the
period of qualified military service equal to:
a. The compensation the Employee would have received during that period if
the Employee were not in qualified military service, determined based on the rate of pay the
Employee would have received from the Employer but for absence during that period; or
b. If the compensation the Employee would have received during that period was
not reasonably certain, the Employee's average compensation from the Employer during the
I2-month period immediately preceding the qualified military service (or, if shorter, the period of
employment immediately preceding the qualified military service).
Page 24--RETIREMENT PLAN
SECTION 9.
VESTING
9.1. VESTING. Each Participant shall have a fully vested and nonforfeitable
interest in the Participant's Pick-up Account, Employer Additional Contribution Account, Employee
Required Contribution Account, and Voluntary Contribution Account. Each Participant shall have
a fully vested and nonforfeitable interest in the Participant's Employer Contribution Account in the
event of the Participant's death, Disability, or attainment of Early Retirement Age or Normal
Retirement Age or upon completing sixty (60) months of participation in the Plan and/or in the City
of Springfield, Oregon Money Purchase Pension Plan; except that each Participant shall have a fully
vested and nonforfeitable interest in any Employer Contribution Account established for the
Participant under Section 7. A month of participation for purposes of this Section 9.1. shall be
credited for:
a. Each calendar month before January 1, 1998, for which a contribution was
made on behalf of the Participant pursuant to Section 4.2.a. as stated immediately before the
January 20, 1998, restatement of the Plan;
b. Each calendar month after December 31, 1997, for which a credit is made on
behalf of the Participant pursuant to Section 5.l.a. as stated in and after the January 20, 1998,
restatement of the Plan; and
c. Each calendar month for which a contribution was made on behalf of the
Participant pursuant to Section 4.2.a. of the City of Springfield, Oregon Money Purchase Pension
Plan.
9.2. FORFEITURE. Upon a Participant's Severance of Employment, the
nonvested portion of the Participant's Employer Contribution Account shall be forfeited. The
amount forfeited shall not be applied to increase the benefits of any Participant or beneficiary. If
the Participant is rehired, months of participation for purposes of Section 9.1. shall include only
months of participation completed after the Participant's Reemployment Commencement Date unless
the Participant:
a. Is reinstated to the Participant's position as a matter of legal right; or
b. Is recalled consistent with Employer policies.
Page 25--RETIREMENT PLAN
SECTION 10.
DISTRIBUTION OF BENEFITS
10.1. GENERAL. Benefits under the Plan shall be distributed as provided in this
Section 10. No claim for benefits need be made.
10.2. UPON SEVERANCE OF EMPLOYMENT. Upon Severance of Employment
of a Participant other than by death, the Plan Administrator shall cause the Participant's vested
Accrued Benefit (not including any Accrued Benefit pursuant to Section 5.1.c. or 7.) to be
distributed to the Participant as soon as administratively feasible; provided, however, that
distribution of all but not less than all of such vested Accrued Benefit ofa Participant who upon
Severance of Employment has a fully vested interest in the Participant's Employer Contribution
Account may at the election of the Participant be deferred:
a. If the Participant was a Tier One Participant:
(1) Until the first (1 st) annual anniversary ofthe Participant's Severance
of Employment (unless earlier distribution is required pursuant to Section 1 OJ .), if the Participant's
Severance of Employment occurs before the Participant's fiftieth (50th) birthday.
(2) Until the fifth (5th) annual anniversary of the Participant's Severance
of Employment (unless earlier distribution is required pursuant to Section 10.3., 10.7., or 10.8.), if
the Participant's Severance of Employment occurs on or after the Participant's fiftieth (50th)
birthday.
b. If the Participant was not a Tier One Participant, until required to be
distributed pursuant to Section 10.3., 10.7., or 10.8.
10.3. UPON DEA TH. 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 of the portion of such vested Accrued
Benefit (not including any Accrued Benefit pursuant to Section 5 .1.c. or 7.) the beneficiary of which
is the Participant's surviving spouse may at the election of such spouse be deferred:
a. If the Participant was a Tier One Participant who died on or after the
Participant's fiftieth (50th) birthday, until the fifth (5th) annual anniversary of the Participant's
Severance of Employment (unless earlier distribution is required pursuant to this Section 10.3. or
Section 10.8.), but, as provided in Section 5.1.d.(2), the credited rate of r.eturn on the Participant's
Accounts will be zero percent (0%) per annum starting with the calendar month that includes the
first annual anniversary of the Participant's Severance of Employment if the Participant's Severance
of Employment occurred before the Participant's fiftieth (50th) birthday.
Page 26--RETIREMENT PLAN
b. If the Participant was not a Tier One Participant, until required to be
distributed pursuant to this Section 10.3. or Section 10.8.
. 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 and
who survive the Participant or, ifno beneficiary has been so selected or survives the Participant, the
surviving spouse of the Participant or, if no beneficiary has been so selected or survives the
Participant 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 10.3. 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.
10.4. FORM OF DISTRIBUTION. Upon the first to occur of:
(i) Severance of Employment (unless the Participant or beneficiary has elected
pursuant to Section 10.2. or Section 10.3. to defer distribution),
(ii) The end of the deferral elected pursuant to Section 10.2. or Section 10.3., or
(iii) The death of a Participant after Severance of Employment (unless the
beneficiary has elected pursuant to Section 10.3. to defer distribution),
the Plan Administrator shall cause the Participant's vested Accrued Benefit (not including any
Accrued Benefit pursuant to Section 5.1.c. or 7.) to be distributed to the Participant or the
Participant's beneficiary, as the case may be, in such one (1) ofthe following methods of distribution
(or in a combination of a lump sum distribution and one (1) of the other 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
(1 20th) such payment. If the Participant (or beneficiary, where the Normal Benefit Form is elected
by the beneficiary) dies prior to receipt of all such payments, any remaining payments shall be made
to the Participant's beneficiary (or the beneficiary's beneficiary, where the Normal Benefit Form is
elected by the beneficiary).
c. Any other form of annuity or installment option then available from the
Insurance Company; provided, however, that any such form of benefit shall be determined and made
Page 27--RETIREMENT PLAN
in accordance with regulations issued under IRC Section 40 1 (a)(9), including the minimum
distribution incidental benefit requirements of Treasury Regulation Section 1 A01(a)(9)-2.
The amount of the monthly payments to be provided by any annuity purchase or installment option
pursuant to this Section 1004. shall be determined based on applying the sum of the Participant's
vested Accrued Benefit (not including any Accrued Benefit pursuant to Section 5.1.c. or 7.) and any
benefit provided under Section 6. as the premium at the annuity purchase rate then made available
to the Plan by the Insurance Company.
10.5. DISTRIBUTION OF DISABILITY CREDITS. 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 5.1.c. or 7. 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 10A.a., 10A.b., or 10A.c. (or in a combination of
a lump sum distribution and one of the methods of distribution described in Section 10.4.b. or
10A.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 10.5. shall be determined based on applying the sum of such Accrued
Benefit and any benefit provided under Section 6. as the premium at the annuity purchase rate then
made available to the Plan by the Insurance Company.
10.6. LUMP SUM FOR SMALL DISTRIBUTIONS. Despite Sections lOA. and
10.5. above, any portion of the benefit that the Participant or beneficiary elects to be distributed in
the form of an annuity or installment option shall be distributed in a lump sum if that portion is less
than the minimum required by the Insurance Company to purchase an annuity or installment .
contract.
10.7. LA TEST DATE FOR DISTRIBUTION. A Participant shall receive, no later
than April 1st of the following calendar year, a distribution of the Participant's vested Accrued
Benefit as of the end of the calendar year in which the Participant attains age seventy and one-half
(70-112) or retires, whichever is later. Any allocations or credits to the Participant's Accounts after
that date shall be distributed in a lump sum as soon as practicable as of the end of the Plan Year in
each succeeding calendar year.
10.8. STATUTORY REQUIRED DISTRIBUTION RULES. This Section 10.8.
applies only to the extent this Section 10.8. requires a distribution to be made earlier than otherwise
required under this Plan and overrides any distribution options in this Plan inconsistent with IRC
Section 401(a)(9).
a. Despite any other provision of this Plan, the entire interest of each Participant:
(1) Will be distributed to the Participant no later than the Required
Beginning Date; or
Page 28--RETIREMENT PLAN
f
(2) WiH be distributed, beginning not later than the Required Beginning
Date, in accordance with Treasury regulations, over the life of the Participant or over the lives of
the Participant and a Designated Beneficiary (or over a period not extending beyond the life
expectancy ofthe Participant or the life expectancy of the Participant and a Designated Beneficiary).
b. If the distribution of the Participant's interest has begun in accordance with
Section 1 0.8.a.(2) and the Participant dies before the Participant's entire interest has been distributed
to the Participant, the remaining portion of the Participant's interest will be distributed at least as
rapidly as under the method of distributions being made under Section 10.8.a.(2) as of the date of
the Participant's death.
c. If a Participant dies before the distribution of the Participant's interest has
begun in accordance with Section 1 0.8.a.(2), the entire interest of the Participant will be distributed
within 5 years after the death of the Participant. However, the 5-year rule does not apply to any
portion of the Participant's interest payable to (or for the benefit of) a Designated Beneficiary; and
not later than 1 year after the date of the Participant's death or such later date as may be prescribed
by Treasury regulations distributions (in accordance with Treasury regulations) of such portion shaH
begin over the life of the Designated Beneficiary (or over a period not extending beyond the life
expectancy of the Designated Beneficiary).
d. With respect to a Designated Beneficiary who is the Participant's surviving
spouse:
(1) The date on which the distributions are required to begin for purposes
of the exception to the 5-year rule in Section 10.8.c. shall not be earlier than the date on which the
Participant would have attained age 70 ;/2; and
(2) If the surviving spouse dies before the distributions to the spouse
begin, Sections 10.8.b. and 10.8.c. shaH be applied as if the spouse were the Participant.
e. For purposes of this Section 10.8.:
(1) "Required Beginning Date" means April 1 of the calendar year
following the calendar year in which the Participant retires or attains age 70 ;/2, whichever occurs
later.
(2) "Designated Beneficiary" means any individual designated as a
beneficiary by the Participant.
(3) Any distribution required under the incidental death benefit
requirements of IRe Section 401(a) shall be treated as a distribution required under this
Section 10.8.
Page 29--RETIREMENT PLAN
f. Despite any contrary provision of the Plan, the Plan will apply the minimum
distribution requirements ofIRC Section 40 1 (a )(9) in accordance with the following proposed, final,
and temporary Treasury regulations:
(1) With respect to distributions made for calendar years beginning before
January 1,2002, the regulations under IRe Section 401 (a)(9) that were proposed in 1987, including
Proposed Treasury Regulation Section 1.401 (a)(9)-2.
(2) With respect to distributions made for calendar years beginning on or
after January 1,2002, Treasury Regulation Sections 1.401(a)(9)-1 through 1.401 (a)(9)-9, and also
Treasury Regulation Section 1.401 (a)(9)-6T for the period it applies.
10.9. DIRECT ROLLOVER. Despite any other provision ofthe Plan that would
otherwise limit a distributee's election under this Section 10., Section 4.3., or Section 6., a distributee
may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion
of an eligible rollover distribution paid directly to an eligible retirement plan specified by the
distributee in a direct rollover. The following definitions shall apply to this Section 10.9.:
a. Eligible rollover distribution: An eligible rollover distribution is any
distribution of all or any portion of the balance to the credit of the distributee, except that an eligible
rollover distribution does not include: any distribution that is one of a series of substantially equal
periodic payments (not less frequently than annually) made for the life (or life expectancy) of the
distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's
designated beneficiary, or for a specified period often years or more; any distribution to the extent
such distribution is required under IRC Section 40] (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. Effective for distributions made after December 31, 1998, and before January], 2002,
an eligible rollover distribution does not include any hardship distribution described in IRC Section
401 (k)(2)(B)(i)(IV). Effective for distributions made after December 31,2001, an eligible rollover
distribution does not include any distribution made upon hardship of the employee. Effective for
distributions made after December 3],2001, a portion of a distribution shall not fail to be an eligible
rollover distribution merely because' the portion consists of after-tax employee contributions which
are not includible in gross income. However, such portion may be transferred only to an individual
retirement account or annuity described in IRC Section 408(a) or (b), or to a qualified defined
contribution plan described in IRC Section 401(a) or 403(a) that agrees to separately account for
amounts so transferred, including separately accounting for the portion of such distribution which
is includible in gross income and the portion of such distribution which is not so includible.
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. Effective for
Page 30--RETIREMENT PLAN
distributions made after December 31,2001, an eligible retirement plan shall also mean an annuity
contract described in IRC Section 403(b) and an eligible plan under IRC Section 457(b) which is
maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or
political subdivision of a state and which agrees to separately account for amounts transferred into
such plan from this Plan. However, in the case of an eligible rollover distribution made before
January 1, 2002, 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.
10.10. AUTOMATIC ROLLOVERS. Despite any contrary provision of this Plan,
the Plan Administratorwill cause any eligible rollover distribution described in this Section 10.10.
to be paid in a direct rollover to an individual retirement plan designated by the Plan Administrator
and will notify the Participant in writing (either separately or as part of the notice under IRC Section
402(f)) that the distribution may be transferred to another individual retirement plan. An eligible
rollover distribution is described in this Section 10.10. if:
a. The distribution (1) is made after December 31,2005, (2) is more than $1,000,
(3) is made with respect to a Participant before the later of the Participant's 62d birthday or the
Participant's Normal Retirement Age, and (4) may be made without the Participant's consent; and
b. The Participant does not elect to have the distribution paid directly to an
eligible retirement plan specified by the Participant in a direct rollover or to receive the distribution
directly.
The definitions in Section 10.9. apply to this Section 10.10. An individual retirement plan is an
individual retirement account described in IRC Section 408(a) or an individual retirement annuity
described in IRC Section 408(b).
1 0.11. ALTERNATE PAYEE. 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:
a. In the form of a lump sum distribution no later than the date required by
Treasury regulations under IRC Section 401 (a)(9); or
Page 31--RETIREMENT PLAN
b. Upon such earlier date, and in such other form, as is provided or allowed by
the order and ORS 237.600.
10.12. DEATH OF ALTERNATE PAYEE. Upon the death of an alternate payee
under a qualified domestic relations order, the Plan Administrator shall cause any undistributed
portion of the vested benefit of the alternate payee to be distributed, as soon as administratively
feasible, in the form ofa 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. If the order
specifies the alternate payee's beneficiary, the person or persons so specified shall be treated as the
person or .persons last selected by the alternate payee on a form of designation of beneficiary
furnished by the Plan Administrator. 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 40 1 (a)(9).
Page 32--RETIREMENT PLAN
SECTION 11.
LIMITS ON BENEFITS AND CONSIDERED COMPENSATION
11.1. LIMIT ON BENEFITS. Despite any other provisions of this Plan:
a. The benefits, contributions, and other additions under this Plan shall not
exceed the limitations imposed by IRCSection 415.
b. With respect to the portion of this Plan that is a defined benefit plan for
purposes ofIRC Section 415, the maximum annual benefit which may be provided under this Plan
will be $90,000 ($160,000 for Limitation Years ending after December 31, 2001). Except as
provided in IRC Section 415(f)(3) (regarding multiemployer plans), which is effective for Limitation
Years beginning after December 31, 2001, in the case of any participant in more than one such
defined benefit plan of the employer (within the meaning ofIRC Sections 414(b), (c), (m) and (0)
and 415(h)), all such plans shall be treated as one plan, and the maximum annual benefit which may
be provided to the participant under this Plan as provided above shall be reduced by the amount of
the aggregate of the annual benefits provided to the participant under such other plans.
c. With respect to any portion of this Plan that is a defined contribution plan for
purposes ofIRC Section 415, the annual addition to any participant's accounts shall not exceed the
lesser of $30,000 or 25% of the participant's compensation (for Limitation Years beginning after
December 31,2001, the lesser of $40,000 or 100% of the participant's compensation). In the case
of any participant in more than one such defined contribution plan of the employer (within the
meaning ofIRC Sections 414(b), (c), (m), and (0) and 415(h)), all such plans shall be treated as one
plan, and the maximum annual addition to the participant's accounts under this Plan as provided
above shall be reduced by the aggregate of the amount of the annual additions to the participant's
accounts under such other plans.
d. For limitation years beginning before January 1,2000, in any case in which
an individual is a participant in both the portion of this Plan that is a defined benefit plan for
purposes of IRC Section 415 and any portion of this Plan that is a defined contribution plan for
purposes of IRC Section 415, the sum of the defined benefit plan fraction (within the meaning of
IRC Section 415(e)) for this Plan and the defined contribution plan fraction (within the meaning of
IRC Section 415(e)) for this Plan for any year may not exceed 1.0. Ifsuch sum would otherwise
exceed 1.0 for such individual, the projected annual benefit of such individual under this Plan shall
be reduced to the extent necessary for such sum not to exceed 1.0.
e. For limitation years beginning before January 1,2000, in any case in which
an individual is a participant in both this Plan and also another defined contribution plan or another
defined benefit plan of the employer (within the meaning ofIRC Sections 414(b), (c), (m), and (0)
and 415(h)), all defined benefit plans of such employer shall be treated as one plan, and all defined
contribution plans of such employer shall be treated as one plan, and the sum ofthe defined benefit
plan fraction (within the meaning ofIRC Section 415(e)) for such aggregate defined benefit plans
Page 33--RETIREMENT PLAN
and the defined contribution plan fraction (within the meaning ofIRC Section 415(e)) for such
aggregate defined contribution plans for any year may not exceed 1.0. If such sum would otherwise
exceed 1.0 for such individual, the projected annual benefit of such ind ividual under this Plan shall
be reduced to the extent necessary for such sum not to exceed 1.0.
f. The limitations in this Section 11.1. shall be applied according to adjustments
in and the provisions oflRC Sections 415 and 41 9A(d) and Treasury regulations thereunder, which
are incorporated into this Plan by this reference.
g. For purposes of applying IRC Section 415 to this Plan:
(1) "Compensation" means wages within the meaning of IRC Section
3401(a) (for purposes of income tax withholding at source) but determined without regard to any
rules that limit the remuneration included in wages based on the nature or location of the
employment or the services performed (such as the exception for agricultural labor in IRC Section
340 1 (a)(2)). Compensation also includes:
(a) Effective for years beginning after December 31, 1997, any
elective deferral (as defined in IRC Section 402(g)(3)) contributed by the Employer and any amount
contributed or deferred by the Employer at the election of the Employe~ and not includable in the
gross income of the Employee by reason ofIRC Section 125 or 457.
(b) Effective for years beginning after December 31, 2000, any
amount contributed or deferred by the Employer at the election of the Employee and not includable
in the gross income of the Employee by reason ofIRC Section 132(f)(4).
(c) Effective for additional elective deferrals made after
December 31,2001, any additional elective deferral under IRC Section 414(v) contributed by the
Employer.
(2) The limitation year shall be the Plan Year.
(3) The adjustments described in IRC Section 415(b )(2)(B), (C), and (D)
will be made by ignoring mortality decrement to the extent a forfeiture does not occur upon death
and as follows:
(a) The adjustment described inIRC Section415(b)(2)(B)will be
made using (i) the interest rate and mortality table used to determine the annuity purchase rate then
made available to this Plan by the Insurance Company or (ii) 5% interest and the mortality table
prescribed pursuant to IRC Section 415(b )(2)(E)(v), whichever produces the greater annual benefit.
(b) The adjustments described in IRC Section 415(b )(2)(C) and
(D) will be made using (i) the interest rate and mortality table used to determine the annuity
purchase rate then made available to this Plan by the Insurance Company or (ii) 5% interest and the
Page 34--RETIREMENT PLAN
mortality table prescribed pursuant to IRC Section 415(b )(2)(E)(v), whichever produces the lesser
annual benefit.
For limitation years beginning before January I, 2000, the above prOVISIOns of this
Section 11.I.g.(3) shall be applied by substituting "the mortality table used to determine the annuity
purchase rate then made available to this Plan by the Insurance Company" for "the mortality table
prescribed pursuant to IRC Section 415(b )(2)(E)(v)" wherever such latter phrase appears. The
mortality table prescribed pursuant to IRC Section 415(b )(2)(E)(v) is, for distributions with annuity
starting dates before December 31, 2002, the table prescribed in Revenue Ruling 95-6 and, for
distributions with annuity starting dates on'or after December 31,2002, the table prescribed in
Revenue Ruling 2001-62.
11.2. LIMIT ON CONSIDERED COMPENSATION. The annual compensation
taken into account for each Participant in determining benefit accruals provided under this Plan for
any Plan Year is limited to the annual compensation limit under IRC Section 401 (a)(17) ($150,000
for Plan Years beginning after December 31, 1993, and before January 1, 2002; and $200,000 for
Plan Years beginning after December 31, 2001), as adjusted for increases in the cost of living in
accordance with IRC Section 401(a)(17). The requirements ofIRC Section 401(a)(17) and the
Treasury regulations thereunder are incorporated into this Plan by this reference.
Page 35--RETIREMENT PLAN
SECTION 12.
RIGHTS AND DUTIES OF PLAN ADMINISTRATOR
12.1. PLAN ADMINISTRATOR. The administration of the Plan shall be in the
Plan Administrator who shall be deemed the named fiduciary.
12.2. GENERAL DUTIES OF PLAN ADMINISTRATOR. The Plan
Administrator shall discharge its duties solely in the interest of the Participants and beneficiaries and
for the exclusive purpose of providing benefits to Participants and their beneficiaries and defraying
reasonable expenses of administering the Plan.
12.3. INSPECTION OF RECORDS. The Plan Administrator shall keep on file a
copy of this agreement, including any subsequent amendments, for examination by the Participants
at reasonable times. Any Participant shall have the right, either in person or by agent or attorney,
to inspect the books and records relating to the Plan excluding records pertaining to the individual
account or interest of other Participants at any reasonable time and place. A Participant shall be
entitled upon request to receive within a reasonable time from the Plan Administrator a statement
setting forth the amount ofthe Participant's Accrued Benefit to date, if any, and a statement of the
amounts credited or allocable to such Participant's individual accounts.
12.4. INTERPRETATION. The Plan Administrator shall have the power to
construe and interpret this Plan and to determine all questions that shall arise under this Plan. The
Plan Administrator shall apply this Plan to Participants described in Section 3.1.d. and their
employers as the Plan Administrator determines is appropriate to implement the requirements of
ORS 236.620. The decision ofthe 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. NOTICE. In any matter in which the Plan Administrator may be required to
take any action under the Plan, the Plan Administrator shall not be obligated to take such action
unless and until reasonable notice shall have been received by the Plan Administrator of the
necessity to so act.
12.6. LEGAL COUNSEL. The Plan Administrator may consult with legal counsel
(who mayor may not be counsel for the Employer) concerning any question which arises under the
Plan, 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.
12.7. EXPENSES. The Plan Administrator shall pay for or direct payment for
administrative expenses, including legal, actuarial, accounting, and other administrative expenses,
from funds accumulated in the Plan.
Page 36--RETIREMENT PLAN
a. The Plan Administrator is authorized to cause payment from the Trust Fund
of all the Trustee's expenses, taxes, and charges (includit1g fees of its accountants, actuaries,
attorneys, other specialists, and agents) incurred in connection with the administration, management,
investment, protection, and distribution of the Trust Fund.
b. The Plan Administrator is authorized to cause payment from the Trust Fund
and the Policy of all expenses of the Plan Administrator. Such expenses shall include any expenses
incident to the functioning of the Plan Administrator, including but not limited to fees of
accountants, actuaries, attorneys, other specialists, and agents, and other costs of administering the
Plan.
c. To the extent that the Plan Administrator does not cause payment to be made,
the Employer may directly pay all the Trustee's expenses, taxes, and charges and all expenses ofthe
Plan Administrator.
12.8. DOMESTIC RELA TIONS ORDERS. Pursuant to authority granted in ORS
237.600 (regarding decrees, orders, or agreements entered or modified on or after January I, 1994),
the Plan Administrator prescribes that no benefit under this Plan may be paid to an alternate payee
under the terms of a court decree or order or court-approved property settlement agreement
("Order") until after the date the Plan Administrator receives a copy of the Order and such additional
information and documentation as satisfies the Plan Administrator:
a. That the copy is a true copy of the Order.
b. That the Order is, within the meaning of ORS 237.600, a court decree of
annulment or dissolution of marriage or of separation, or a court order or court-approved property
settlement agreement incident to such a decree.
c. Of the extent to which the terms of the Order expressly provide for payment
of a benefit under this Plan to an alternate payee.
d. Of any other fact or matter required for the Plan Administrator to:
(1) Determine the application of ORS 237.600 to the Order or the extent
to which the Order applies to this Plan.
(2) Comply with the Order or with ORS 237.600.
(3) Administer this Plan under the terms of the Order.
Page 37--RETIREMENT PLAN
! [ ) "'I
SECTION 13.
AMENDMENT; TERMINATION; EXCLUSIVE BENEFIT
13.1. AMENDMENT. The Employer expects to continue this Plan indefinitely,
but nevertheless reserves the right at any time or times to amend this Plan to any extent and in any
manner that the Employer may deem advisable by:
a.
amendment; or
Resolution of the Common Council of the Employer making such
b. A document signed by the City Manager of the Employer making such
amendment, but the City Manager may amend this Plan only to:
(1) Change the designation of the Insurance Company in Section 2.8.;
(2) , Clarify this Plan;
(3) Make such changes to Section 7. and the provisions of this Plan
relating to ~ection 7. as the City Manager deems helpful or appropriate to provide credits for
participants or former participants in the City of Springfield, Oregon Money Purchase Pension Plan
who (a) become Disabled prior to attaining age sixty (60) as a result of an illness or injury that
occurred before Aprill, 2002 and (b) are described in Section 7.2.b.(3) and 7.2.b.(4);
(4) Facilitate the administration of this Plan; or
(5) Make changes adapting this Plan to the requirements of law, changes
in law, or the terms of a collective bargaining agreement,
all as determined in the discretion ofthe City Manager, provided that no amendment shall (a) have
the effect of vesting in the Employer any interest in any property held subject to the Trust or the Plan
or (b) 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.
13.2. DISCONTINUANCE OF CONTRIBUTIONS AND TERMINATION OF
PLAN. The Employer has established the Plan with the bona fide intention and expectation that it
will be able 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.
Page 38--RETIREMENT PL1\N
.. j J ~ ...
13.3. NOTICE OF TERMINATION. The Plan hereby created shall terminate upon
delivery to the Plan Administrator of a notice of termination executed by the Employer specifying
the date as of which the Plan shall terminate.
13.4. VESTING ON TERMINATION. In the event of a termination or partial
termination of the Plan, all affected Participants shall have a fully vested and nonforfeitable interest
in their Accrued Benefit and benefits provided under Section 6.
13.5. EXCLUSIVE BENEFIT. Except as otherwise provided in this Plan, in no
event shall the principal or income of this Plan be paid to or revert to the Employer or be used for
any purpose whatsoever other than for the exclusive benefit of the Participants or their beneficiaries.
13.6. REVERSION ON TERMINATION. In the eventofa termination ofthis Plan
any amounts remaining after satisfaction of all liabilities to the Participants and beneficiaries shall
revert to the Employer.
Page 39--RETIREMENT PLAN
..... I , ~
SECTION 14.
CLAIMS PROCEDURE
14.1. CLAIMS. Upon the request of a Participant or beneficiary, or by action of
the Plan Administrator, the Plan Administrator shall provide claim forms to any Participant or his
beneficiary who becomes entitled to benefits under the Plan because of retirement, Disability, death
or Severance of Employment for any other reason. Such claim form shall be complete9 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. ,REVIEW. Within sixty (60) days after receipt of notice of denial ofthe 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 ofthe 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 40--RETIREMENT PLAN
.~ j I <1
SECTION 15.
MISCELLANEOUS
15.1. NOT A CONTRACT. The adoption and maintenance of the Plan shall not
be deemed to be a contract between the Employer and any Employee. Nothing in the Plan shall be
deemed to give any Employee the right to be retained in the employ ofthe Employer or to interfere
with the right of the Employer to discharge any Employee at any time. Nothing in the Plan shall be
deemed to give the Employer the right to require any Employee to remain in its employ, nor shall
it interfere with the Employee's right to terminate the Employee's employment at any time.
15.2. GOVERNING LAW. This Plan shall in all respects be construed according
to the laws of the State of Oregon, except as modified in Section 15.6.
15.3. BENEFITS PAYABLE SOLELY FROM THE PLAN. All benefits payable
under the Plan shall be paid or provided for solely from the Plan assets and the Employer assumes
no liability or responsibility therefor.
15.4. ANTI-ALIENA TION. No Participant shall have power to alienate, transfer,
assign, anticipate, mortgage or otherwise encumber either the Participant's interest in this Plan or
in any other property held under the Trust or the Policy for the Participant's benefit under the terms
of this Plan. No interest of a Participant in the Plan or in any other property held under the Trust or
the Policy for the Participant's benefit shall be subject to garnishment, attachment or other seizure
or sequestration for the payment of debts, judgments, alimony or separate maintenance owed by such
Participant or be transferred by operation oflaw in the event of bankruptcy, insolvency or otherwise
except pursuant to a qualified domestic relations order described in IRC Section 414(p).
15.5. DISABILITY. If any person to whom a benefit is payable under the Plan is
an infant, or if the Plan Administrator determines that any person to whom such benefit is payable
is incompetent by reason of physical or mental disability, the Plan Administrator shall have the
power to cause the payments becoming due to such person to be made to another for his benefit
without responsibility for the Plan Administrator to see to the application of such payments. Any
payment made pursuant to such powers shall as to such payment operate as a complete discharge
of the Plan Administrator.
15.6. QUALIFIED PLAN. 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 plan.
15.7. GENDER AND NUMBER. Whenever any words are used in the Plan 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 in the Plan
in the singular or plural form, they shall be construed as though they were also used in the other
form in all cases where they would so apply.
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'~J r ~~
15.8. EGTRRA. The provisions in this Plan that reflect provisions ofthe Economic
Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA") are intended as good faith
compliance with the requirements ofEGTRRA and are to be construed in accordance with EGTRRA
and guidance issued thereunder.
15.9. NOTICES. Unless otherwise specifically provided in the Plan, any notices
required or permitted to be given under the terms ofthis Plan, or by law, shall be in writing and may
be given by personal delivery or certified mail, return receipt requested, directed to the parties at the
addresses shown on the Plan records, or such other address as a party may designate in writing prior
to the time of giving such notice. Unless otherwise provided in the Plan, any notice given shall be
effective when actually received or if given by certified mail, then seventy-two (72) hours after the
deposit of such notice in the United States mail with postage prepaid.
15.10. TABLE OF CONTENTS AND CAPTIONS. The Table of Contents and the
captions are inserted only for convenience and have no substantive effect.
15.11. COUNTERPARTS. This Plan may be executed in several counterparts, and
each shall be an original without reference to the others.
DATED: July 2, 2007.
CITY OF SPRINGFIELD, OREGON
By:
City Manager
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