HomeMy WebLinkAboutResolution 97-050 03/03/1997 RESOLUTION NO. 97-50 N.C.S.
of the City of Petaluma, California
RESOLUTION AMENDING TFIE CITY OF PETALUMA DEFERRED COMPENSATION
PLAN TO CONFORM W[TH CHANGES IN FEDERAL LAW REQUIRED BY THE SMALL
BUSINESS PROTECTION ACT OF 1.996
WHEREAS, the City of Petaluma established a Deterred Compensation Plan for its
employees in 1981; and
WHEREAS, Legislative changes modified the Rules governing Deferred Compensation
Plans through the Small Business Job Protection Act of 1996; and
WHEREAS, the City of Petaluma is required to amend its Plan Documents in order to be
in compliance with the Act;
NOW THEREFORE BE IT RESOLVED, that the City of Petaluma's Deferred
Compensation Plan is amended as attached and that the City Manager is authorized to sign such
amendment.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
Council of the City of Petaluma eta (Regular) (A~~l{8)fl~ meeting fO~
on the ...:3~d day of ............._M~CCh..............................., 19._97. by the ~
following vote:
City Attorney
AYES: Read, Keller, Stompe, Torliatt, Maguire,. Vice Mayor Hamilton, b7ayor Hilligoss
NOES: None
ASSENT: N ne y/n/J!
ATTEST: .~~'..._........_/.~(~a
City Clerk Mayor
oo~mcit F;tn.._....._._
ca io-as Hrs. No....97._S Y........... N.c.S.
3/3/97
Attachment
DEFERRED COIv1PENSATION PLAN
amended
ARTICLE I
General
1.1 The "Name" of this Plan is the City of Petaluma Deferred Compensation Plan, referred to
throughout this document as the "Plan". It has been adopted pursuant to Resolution 9040 N.C.S.
and is effective as of such date.
1.2 The primary purpose of this Plan is to permit full-time employees of the City of
Petaluma to enter into an agreement which will provide for deferral of payment of a portion of
their current compensation until death, retirement, termination of employment, or other event, in
accordance with the provisions..of Section 457 of the Internal Revenue Code of 1986, with other
applicable provisions of such Code, and in accordance with the General Statutes of the State of
California.
1.3 It is intended that the Plan shall qualify as an Eligible Deferred Compensation
Plan with in the meaning of Section 457(b) of the Code sponsored by an Eligible Governmental
Employer.
1.4 The Employer does not and cannot represent or guarantee that any particular
federal or state income, payroll or other tax consequence will occur by reason of participation in
this Plan. A Participant should consult with his or her own attorney or other representative
regarding all tax or other consequences of participation in this Plan.
~leso 97-5U TICS
ARTICLE 2
Definitions
For purposes of this Plan, the following words and phrases shall have the meaning set forth
below:
2.1 "Administrator" means the Employer or its duly authorized designee for that
purpose who shall exercise the discretion or other functions given to the Employer under the
terms of the Plan.
2.2 "Adjusted" means adjusted for the cost of living at the time and in the manner as
prescribed under section 457(e)(1 S) of the Code.
2.3 "Annuity Contracts" means an annuity contract (fixed and/or variable) issued by
Hartford Life Insurance Company.
2.4 "Beneficiary" means any person designated by the Participant to receive an
annuity, death benefit, or other benefit under the provisions of this Plan, by reason of such
Participant's_death.
2.5 "Code" means the Internal Revenue Code of 1986, as amended.
2.6 "Compensation" means the total of all wages or salaries which are paid by the
Employer to, or for the benefit of, an Employee for services rendered, calculated without
deduction for any portion thereof deferred under the provisions of this Plan or for any amounts
contributed to any program established pursuant to Code Sections 403(6), 401(k), 408(k)(6), or
501(c)(18).
2.7 "Deferred Compensation" means that portion of an Employee's compensation
which said Employee has elected to defer in accordance with the provisions of this Plan.
2.8 "Deferred Retirement Date" means the date beyond the Normal Retirement Date
specified in Section 2.14 designated by the Participant. Such date shall not exceed the earlier of
(i) the Employer's mandatory retirement age (if applicable), or (ii) the date on which the
Participant incurs a Teanination of Employment.
2.9 "Eligible Deferred Compensation Plan" has the meaning given it by the Internal
Revenue Code Section 457(6) and the regulations thereunder.
2.10 "Eligible Governmental Employer" means a State, political subdivision of a State,
and any agency or instrumentality of a State or political subdivision of a State.
2.11 "Employer" means the City of Petaluma..
peso q"1-50 NCS
2.12 "Employee" means any individual defined as eligible by standards set forth by the
Employer. A copy of such standards is attached as Exhibit A and incorporated as if fully set
forth.
2.13 "Includible Compensation" means compensation from the Employer that is
currently includible in gross income for federal income tax purposes (i.e., taxable income).
2.14 "Normal Retirement Date" means the date a Participant retires pursuant to the
Employer's Retirement Plan without reduced benefits. (Retirement program administration can
answer specific questions).
2.15 "Participant" means any individual who performs services for the Employer either
as an Employee as defined in Section 2.12 or as an independent contractor, who elects to
participate in this Plan or who has unpaid benefits due under the Plan, as well as any separated
employee or beneficiary who has unpaid benefits due under the Plan.
2.16 "Participation Agreement" means an agreement filed by an Employeeao elect or
modify participation in the Plan.
2. ] 7 "Participation Account" means the bookkeeping account to which there is
credited the Participant's Deferred Compensation, together with any interest, dividends, gains,
losses, or the Gke thereon.
2..18 "Plan Yeaz" means the calendar year during which the Plan becomes effective,
and each succeeding year during the existence of this Plan.
2. l9 "Termination of Employment" means in the case of an Employee, separation
from service within the meaning ofSection 402(e)(4)(D) of the Code or on account of the
Participant's death or retirement, or in the case of an independent contractor, the expiration of the
contract (or, in the case of more than one contract, all contracts) under which services are
performed for the Employer.
r~es~ `~~-5U NCS
ARTICLE 3
Operation of Plan
3.1 Participation. Any Employee may elect to become a Participant in the Plan and
to defer payment of part of his compensation not yet earned by executing a written Participation
Agreement and filing it with the Employer.
3.2 Participation Agreement. The Administrator shall establish a form of
Participation Agreement which shall contain, among other provisions, a provision whereby the
Participant specifies:
(a) that portion of his/her Compensation which is to be deferred.
(b) his/her investment preference; however, the Employer reserves the right
to disapprove the Participant's selection.
(c) a Beneficiary or Beneficiaries, including one or more contingent
Beneficiaries, to receive any benefits which may be payable under this Plan or on the death
of the Participant.
(d) that his salary, wage or other compensation is as set forth in any salary
ordinance or otherwise without deductions for amounts deferred under the provisions of
this plan.
(e) that the participant together with his heirs, successors, and assigns, holds
harmless the Employer from any liability hereunder for all acts performed in good faith,
including acts relating to the investment of deferred amounts and/or the Employee's
investment preference hereunder.
(f) a payment option and method of payment (monthly, quarterly,
semi-annually or annually) if applicable. The option and method of payment selected may
be changed at any time prior to the earliest distribution date for benefits provided in the
Plan for a Participant and may not thereafter be modified.
3.3 Agreement Effective Date. If the Participation Agreement is received prior to
the 15th of the month, it will take effect on the first pay day of following month. If received on
or after the i 5th, it will take effect on the first pay day of the second month following.
Thereafter, during each employment year in which the Employee is a Participant in the Plan, that
portion of his said Compensation which is specified by the Employee in the Participation
Agreement shall be deferred and paid in accordance with the provisions of this Plan.
R~ s~ 97 - so ~1c.s
3.4 Amendment of Participation Agreement. The Participant may revoke his election
to participate and may change the amount of Compensation to be deferred, or his' investment
preference, by signing and filing with the Employer a written revocation or amendment, on a
form approved by the Administrator. Any such revocation or amendment shall be effective
.prospectively only, beginning with the first pay period of the subsequent month.
3.5 Reeular Contributions. The regular contribution is the amount of compensation
which may be deferred by a Participant subject to the following limitations:
(a) Calendar Year Maximum. The maximum amount a Participant may defer
during a calendar year shall not exceed the lesser of (i) $7,500 (as Adjusted), or (ii) 33-
l/3% ofthe Participant's Includible Compensation (typically 25% of the Participant's gross
taxable income from the Employer).
(b) Pay Period Maximum. The maximum amount a Participant may defer
during a pay period, when combined with previous deferrals during the calendar year, shall
not exceed the lesser of (i) $7,500 (as Adjusted) or (ii) 33-1/3% of the Participant's year
to date Includible Compensation (typically 25% of the Participant's year-to-date gross
taxable income from the Employer).
(c) Pay Period Minimum. The minimum amount a Participant may defer is
$25 per biweekly pay period.
3.6 Catch-Up Contributions. A Participant may defer an additional amount under
this "catch-up provision", for one or more of the last three calendar years ending before attaining
the Participant's Normal or Deferred Retirement Date as defined in Sections 2.8 and 2.14. The
use of "catch-up" is subject to the following restrictions:
(a) The maximum amount a Participant may defer each calendar year shall
not exceed the lesser of these two amounts:
(1) $15,000 minus the regular contribution, br
(2) any Employer provided compensation eligible for deferral that was
not deferred for any prior taxable year which began after December 31,
1978.
(b) To use "catch-up", a Participant must declare a retirement age, which
may be any age at or after which the Participant qualified for Normal Retirement eligibility, but
no later than age 70-1/2. This declaration does not compel retirement.
(c) The "catch-up" provision may not be used during the calendar year that
the Participant ceases to be an Employee.
ReSU 9 '1 - 5U N C S
(d) The "catch-up" provision may be used only once by any Participant,
whether under this Plan or any other eligible Deferred Compensation Plan.
(e) Participants may continue to make regular contributions after they are no
longer eligible to use "catch-up".
[3.7 Em~lover Contributions. Nothing in this Plan prohibits the Employer from
making deposits to a Participant's Participation Account as additional compensation for services
rendered, subject to the Participant's regular contribution limits.]
i~eso . 9"I - 50 t~CS
ARTICLE 4
Investment Responsibilities
The Employer shall defer payment of Participant compensation in the amount specified in each
Participation Agreement filed with the Employer.
4.1 Investment of the Deferred Amount. The deferred amount shall be held for the
exclusive benefit of Participants and their Beneficiaries under one or more Annuity Contracts
which may provide for guaranteed. rates of interest or variable investment options.
4.2 Employer's Investment Rights. The Employer may, but is not required to, invest
amounts equal to the deferred compensation credited to a Participation Account in accordance
with his or her requests. However, the Employer shall be under no obligation to invest the
deferred amount in the manner specified and shall retain the right to approve or disapprove
investment requests made by the Participant at the time of enrollment or change in enrollment.
4.3 Amendment of Investment Preference. The Participant may amend his statement
of investment preference by filing with the Employer a signed amendment on a form approved by
the Administrator. Such amendment will, unless specifically stated otherwise, applyonly to
future amounts deferred under the Plan.
4.4 Investment Disclaimer. Any action by the Employer in investing funds, or
approving any such investment of funds, shall not be considered to be either an endorsement or a
guarantee of any investment; nor shall it be considered to attest to the financial soundness or the
suitability of any im~estment for the purpose of meeting future obligations as provided under the
distribution guidelines given below.
4:5 Statements. The Employer will cause to be issued statements periodically to
reflect the actual earnings, gains, contributions and losses posted to the Participation Accounts.
t~eso. q~-5v Ncs
ARTICLE 5
Distributions
Code Section 457 and the applicable regulations determine the Participant's eligibility for
distributions and options available.
5.1 Eligibility. Distribution may be taken under any of the following circumstances:
(a) Retirement;
(b) Sepazation from service within the meaning of Sections 1.457-?(h)(2)
and (3) ofthe Income Tax regulations;
(c) Participant's death;
(d) Approval of request for emergency withdrawal;
(e) Attainment of age 70-1/2, whether or not still employed.
5.2 Distribution and Deferral. Distribution must follow the. minimum distribution
requirements of Sections 401(a)(9) and 457(d) of the Code and the regulations thereunder as
they may be amended from time,to time. There is a substantial penalty (federal excise tax) for
not satisfying the minunum distributionrequirements.
Upon becoming eligible in accordance with Section 5.1 hereof, distribution is
subject to the following guidelines:
(a) A Participant may elect to commence distribution in accordance
with the distribution schedulesset forth at Section 5.3 hereof: Unless the Participant fails to
make any election or if the Participant:elects apostponed distribution;commencement date
pursuant to Section 5.2(b) below, the Participant's Participation Account shall be, or shall
commence to be, distributed not later than sixty (60) days after the close of the Plan Year in
which the Participant's Participation Account becomes eligible for distribution. If a Participant
fails to make anyelection, distribution hall commence in accordance with Section 5:5 hereof.
(b) A Participanrmay elect to postpone the commencement date specified in
the election,made>pursuant;to Section 52(a) to a laterdate if (i) such postponemenT;election'is
made~prior to the original commencement date specified in the election made pursuant to Section
5.2(a), and (ii) no other postponement election has been made pursuant to this Section 5.2(b);
provided further;.tfiaba.Participant may change the form of payment elected at any time that isat
least sixty (60) days prior to the date on which payments willcommence.
tie so `3 ~1- 5 0 ~
(c) A Participant may,elect.fo postpone distribution, even after using the
"'catch-up" provision.
(d) If eligibility'for distribution,is on account;ofthe Participant's death,
distribution shall commence in accordance with Section 5:8'hereof.
(e) Notwithstanding any provision of the Plan o the contrary, distribution
must commence no later than April,",l st following,the later of (i) ahe'~calendar year in which the
Participant attains age 70-1/2 or (ii) the calendar year,in which the Participant separates from
service, and must be completed by the Participant's allowable lifeexpectancy, defined as the
single orjoint (spousal) life.,expectancy as set forth inthe ife annuity actuarial tables (Code
Section.72 and regulations thereunder).
5..3 DistributiontSchedule.,Fxcept in the event.ofthe.Participant's death, the full
amount credited.to the Partigipant's Participation Account (ihcliading earnings and net gain or
loss); less;any federal or State'income tax required fo be withheld, sha1T be distributed as
instructed by the Participant, following one of the following distribution schedules:
Option 1: 'Lump sum payment, A lump sum;
Option 2.. Pavrnents for a specified period. ,Amounts payable in substantially
non-increasing:installments over a~period offive'(5) to thirty (30) years, but not in excess
of the Participant's allowable Gfe expectancy;
Option 3. Life annuirv. Anannuiry payable during the lifetime of the Participant;
Option 4. Life annuity with period certain ,guaranteed-. An annuity payable.
during the;lifetime of the`Participant, or his Beneficiary; with the;guarantee that if at the
Participant's death paymentshave.not been made for the guaranteed period as elected,
payments will continue,to the Beneficiary. The guaranteed period to be elected must be
either ten (10) or fifteenti(15) years if the Beneficiazy is not a~spousal Beneficiary. ,For a
spousal Beneficiary, the guaranteed period to be elected may be either ten (10), fifteen
(15) ortwenty (20) yeazs but!may not exceed the life expecfancy of the Participant and his
gpousal',Beneficiary; or
Obtion5, Joint andlsurvivorannuity. An annuity payment during the lifetime•of
the Participant apd a spousal'Beneficiary of the Participant.
5.4 Participation Accounts Not Exceeding$3 500. Notwithstanding any provision of
the Plan,to the contrary,if the total amount of a Participant's Participation Account under the
Plan does not `exceed'~$3,SOQ'the Participant may elect to receive (or the Employer may elect to
pay to the Participant without the.Participant's.consent) the total.amount in a lump sum payable
within 60 days ofsuch`election; ro~ded, however'such amountmay be distributed pursuant to
this Section 5.4 only if: (a) no'.amount'has'been deferred under'the Plan with respect to such
Rego g~: 5~ ~S
1
Participant :during the two-year period ending on the; date'of the distribution, and (b) there has
been no-prior distribution under the Planto such Participanfto which this Section 5.4 applied.
5.5 Default Distribution Schedule. If the Participant fails to elect a paymenf option
for any event which causes amounts to become available under the Plan, the Participant shall be
deemed to have elected, pursuantto Section 5.2(b):hereof, to postpone distribution of his benefit
until the year in which the Participant attains age 70 '/z . Upon such Participant's attainment of
age 70 ''/z, payments shall commence for a specified period of ten (10) years as provided for in
Option 2. Notwithstanding the foregoing,, Participation:Accounts not exceeding 53,500 shall be
subject to earlierdistribution+++ia+accordance with Section 5.4 hereof.
5.6 Method of Payment Options. If the Participant has elected a payment option
requiring installment payments, the Participant may also elect to have such payment made either
monthly, quarterly,.semi-annually orannually.
5.7 Income'Tax Reporting Amounts paid to a Participant shall be reported on
appropriate tax reporting forms to a Participant as wages subject to withholding for federal
income taxes. '
5.8 Distribution Schedule"In The Event of the Participant's Death. In the event of the
Participant's death, the full,amount credited.to the Participant's~Participation.Account (including
earnings and net gain or loss), lessany federal or State income tax required to be withheld, shall
be distributed:according to.,the following requirements:
(a) If distribution has commenced prior to the death of the Participant, the
balance of a Participant's Participation Account shall be paid to the Beneficiary in
accordance with the payment option: already selected'by the Participant so that the
remaining distribution will be effected at least as rapidly as under the method of payment
used before the Participant's death.
(b) If ttie distribution has not commenced prior'to the death of the
Participant, anon-spousal beneficiary may take distribution under Options 1, ? or 4 above
over a maximurri of l 9 yeaTS}.commencing no later than one year afterthe date of the
Participant's death.
A spousal beneficiary may defei.distributiop no later than the year the.deceased
Participarit'would'have reached age 70-1%2 and may take distribution under Options 1, 2, 3
or4 above for a period;not exceeding his/her own life:expectancy.
(c) If the Beneficiary failsto make such"selection, payments shall be made to
'the Beneficiary in accordance withahe Option 2 over a 10 year period.
'The Employer shall process distribution requests immediately upon receipt of all required
forms
Ipso. q~-5o Hies
5.9 Emersencv-Distribution. NotwithsfaFiding;any other provisions of this Plan, a
Participant may apply for a lump sum withdrawal of funds-from the Plan under certain emergency
conditions: The'Employerwill evaluate,the regiiest"for conformity with its interpretation of the
applicable regulations.
The Participant must-.satisfy the Employer that all of the following conditions are
met before the Employer may authorize the emergency withdrawal:
(a) Major unexpected and unreimfiurseable expenses exist that were not
foreseeable and are beyond the Employee's control;
(b) The unforeseeable emergency event: involves the Participant, or his/her
spouse or any dependentwho qualifies under Section 152(a) of the Code;
(c) The financialburden created must beitheaegal'obligation of the
Participant;
(d) All otherfinancial sources, such as insurance payments and attempts to
obtain loans, have6een exhausted;
(e) All.assets must be_ -liquidated except-where liquidation would itself cause
severe financial hardship;
(f) The,arnounf of the requested withdrawal is limited to the amount necessary
to meetthe financial emergency; and
(g) Great financial hazdship will occur if the withdrawal is not permitted.
Examples of hardship dreumstances include-major property loss and catastrophic illness of
spouse or dependents..
Wthdrawalsrare not authorized for expenses related to the.death or illness of any other
family member, or for budgetable`expenses such as automobile or college costs, a home down
payrnent;,or'expenses relative to divorce. proceedings.
Any remaimng'benefits shall;be paid upon retirement, termination:of employment, or death
in accordance withahis Article 5.
The decision of the Employer concerning Emergency Withdrawals shall be final as to "all
Participants
R~~. 9 - 50 ~ ~S
ARTICLE 6
Beneficiarv~
6.1 Desianation. Each Participant,has the right, by written notice filed with the
Employer, to designate one or more beneficiaries to receive any benefits payable under this Plan
in the event of the Participant's death prior to the. complete distribution of benefits. The
Participant accepfs and acknowledges that he has the burden for executing and filing, with the
Employer, a proper beneficiary designation form.
The form for this purpose shall be provided bythe Employer. It is not binding on the
Employer until it is signed, filed with the Employer by the Participant, and accepted by the
Employer.
If no such designation isineffect upon the Participant's death, or if no designated
beneficiary survives the Participant, the beneficiary shall be 4he estate.
If no estate executor or administrator is appointed and qualified within one hundred twenty
(i20) days after the Participant's death;-.the. payment may be made first, to a surviving spouse,
second, to a surviving child or children, and third, to a surviving pazent or parents.
Reso.9~-5o Ncs
ARTICLE Z
Non=Assi_pna6ility
Neither the Participant nor the, Participant's beneficiary nor any other designee, shall have
any right to commute, sell, assign;,pledge; hypothecate; transfer,.o; otherwise convey the right to
receive any payments hereunder; which payments and right thereto are expressly declared to be
nonassignable and-nontransferable.
Except to the,extent;otherwise provided by law,-no paymentsshall be subject to
attachment; garnishment or execution, or be transferable in3he event of bankruptcy or
insolvency.
- Ile.SO. ~1'l ~ 50 tJ CS
ARTICLE 8
Plan Transfers
Code Section 457 and the applicable regulations permit transfers of plan interests when the
Participant changes employers.
8.1 Transfers In. The full value of a Participation Account may be accepted from
another Eligible Deferred Compensation Plan maintained by another employer and credited to the
Participant's Participation Account under this Plan, if
(a) The Participant has separated from service with that employer and
become an Employee;
(b) The other employer's plan provides that such transfer can be made.
As it deems necessary, the Employer may require such documentation from the
predecessor plan to effect the transfer, to•confirm that such plan is an Eligible Deferred
Compensation Plan within. the meaning of Code Section 457 and to assure that transfers are
provided for under such•plan.
The Employer may refuse to accept a transfer in the form of assets other than cash, unless
the Employer agrees to hold_such other°assets under the Plan.
Any amounts transferred that had been,deferred during prior calendar yeazs will not be
subject to current calendar year deferral limitations.
8.2 Transfers Out. The fiill value of a Participation Account may be transferred to
another Eligible Deferred Compensation Plan maintained by another employer, iE
(a) The Participant has separated from service with the Employer and
become an employee of the other employer;
(b) The other employer's plan provides that such transfer will be accepted;
and
(c) The Participant and the employer have signed such agreements as are
necessary to assure thaithe Employer's liability to pay benefits to the
Participant has been discharged and assumed by the other employer.
As it deems necessary, the Employermay require such documentation from the other plan
to effect the transfer, to confirm that such plan is an Eligible Deferred Compensation Plan within
the meaning of Code Section 457 and to assure.that transfers aze provided for under such plan.
~eso. q~- Sa NC.~
Such transfers shall be made only under such circumstances as aze permitted under Code Section
457 and.the applicable regulations.
Reso.q~-So AGS
ARTICLE 9
Administrafion.and Acdduntine
9.1 Administration by Emslover. This Elan: hall be administered by the Employer, .
which shall prescribe such forms;: and:adopf such rules and regulations as are necessary to carry
out the purposes of the Plan: The Employer may employ investment: counsel to provide advice
concerning categories of investment; investment guidelines'and investment policy; provided;
however, that the advice or recommendations of any such investment counsel shall not be binding
on the Employer; which shallmake;the final determination concerning investment categories,
investment guidelines and policies.
The:Employei may contract-with afinanciapy responsible independent contractor to
administer and coordinate the Plan:under the direction of the Employer. The Administrator shall
have the right.to designate a PIan.Coordinator or other party of its.choice to perform such
services under this agreement as:niay be mutually agreed to between the Administrator and the
Plan Coordinator or otherparty. Notwithstanding anyrother provisions to the contrary, the
Administrator agrees that:it shall be solely responsible to the Employer for any and all services
performed by a subcontractor, assignee, or designee under this agreement.
9.2 Admutistrative Costs. The Employer shalLdetermirte, in a manner deemed fair
and equitable, the administrative costs associated with°the withholding:ofDeferred Compensation
amounts pursuant to this plan,or in making investments or otherwise administering or
implementing the Plan. The Employer may withhold or collect; orhave withheld or collected,
such costs, in such manner as he deems=equitable either (1)$om the compensation deferred
pursuant to the Plan, the income produced-from the compensation defen•ed pursuant to the Plan,
the income produced from anyinvestment, whether or.not augmented, or (2) from the
organization receiving such investment where required by lawto collect therefrom or, if not so
required, where mutually satisfactory YO such'organization and the Administrator. The
Administratormay remit ordirect the remission of appropriate amounts so withheld or collected
to the Employer.
Reno. ~il-5o NC.S
ARTICLE' 10
Amendments
10.:1 Ri~htsto Amend.;Modifv and Terminafe, The'Employermay at any time modify
orternunate the:Plan'by notifying Participants of such action. 'The Employee shall not have the
.right to reduce or affect tfie-value ofiany Participant's account or any rights accnied under the
Plan prior to modification or,ternunation:
10;2 Conformation. The Employer shall amend and interpret the Plan to the extent:
necessary to conform to the requirements of Code Section-457 and any other applicable law,
regulation or ruling, including,~amendments that are retroactive: In the event the Plan is deemed
by the Internal Revenue Service tabe adm~nis"tei`ed in a manner inconsistent with Code Secti~r.
457, the Employershall.correct such inconsistency within the period,provided in Code Section
457(bl.
103 Elan Termination. Iiithe:event of the termination of;the Plan, distribution of
benefits shall be:made;to;Participanfs aiiS'beneficiaries pursuant to the distribution guidelines in
Section 5 or the transferprovisions of Section 8.
• Reno. 9~-5o WIGS
ARTICLE 11
Exclusive-Benefit
1.1.1 All amounts of,compensation deferred under: the Plan, all,property and rights
purchased.withsuch amounts; and alI?_income~attributable to'auch amounts, property orrights
shall be held in trustor under one or more annuitycontracts:described in Section 401(f) of the
Code. Except as,may otherwise be permittedor requued by law, no assets or income of the Plan
shall be used'for; or diverted to; purposes.other than forthe exclusive purpose of providing
benefits for Participants and their Beneficiaries or defraying reasonable expenses of
admuustration of the Plan.
~eso. 9~ ~ 56 NGS
ARTICLE 12
Miscellaneous
12. I Retirement System Inte
cag
lion. Benefits payableby, and deductions for
Employee contributions to, any tetitement system of the Employer shall be computed without
reference to amounts deferred pursuant to this Plan.
12.2 Employment. Neitherthe establishment of tfie,Elan.nor "any modification thereof;
nor the establishment of any account, northe payment,ofanybenefits, shall be construed as
,giving to any Participant.orother persorr.any legal or equitalile'riglrt against the Employer except
as herein provided;,and, in no event, shall'the terms or employment of any Employee lie modified
or in any way affected hereby..
123: Successors and Assigns. The Plan shall be binding upon and shall inure to the
benefit of the Employer, its successors and assigns, all Participants and Beneficiaries and their
heirs and legal representatives.
12.4 ~ Written Notice. Any notice or other communication required or pernitted under
the Planshall be in writing; and if duetted' fo the Employer shall besentao the designated office
of the Employer, and; if directed to a'Parficipant onto a Beneficiary, shall be sent to such
Participant or Beneficiary at his last~known address as itappeazs on the Employer's record.
12.5 Total A Bement. Tlvs Elan and theParticipation Agreement; and any
subsequently adopted amendmentahereof ;shall constitute the total:agreement or contract
between the Employer and the-.Participant regardingthe Plan. No_ oral statement regarding the
Plan may be relied upon by the Participant:
:12.6 Gender. As used'herein the masculine shall include the neuter and the feminine.
where appropriate.
12.7 Controlling Law. This Plan is creatediand shall be construed, administered and
interpreted in accordance with'Section 457::of the Code and'the regulationsthereunder and under
the lawsof the State: of domicile of the Employer as the same shall be at the,time,any dispute or _
issue is.raised. If;any portion of this Planis held illegal, invalid orunenforceable, the legality,
validity and enforceability of the remainder shallbe;unaffecfed:
Resc>. 9l - 5~ NC S.
L\' WITi\fESS WI~REOF;,the; Employer has executed this Plan document this.
day of ~o ~`/o-~ , 19 y:~
(Nameof Employer)
SEr1L
Its _ - 2,
(Title)
fittest:
Title Witness)
r APProve`
dlas to orm
~r
'~?i i%
City ,attorney
City Clerk
ileso. 9~-5o Nc,~
~IN~ W~~~~ITNESS WHERHOF; the~Employer has executed this Plan document this
day of r/y,P,l~f' ~ , 197
ame ofEmployer)
SEAL
b
y
Its CIT(
(Title)
Attest:
Title (Witness)
'EXHIBIT A
'`Employee'' means any full-tune pernanentemployee;.whose,Memorandum of Understanding or
CompensatiodPlan-.authorizes par[icpation^in the'Plarr.
Re~.9~-so NHS