Res 04-408
RESOLUTION NO.
04-408
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF FEDERAL WAY, WASHINGTON, AMENDING THE
CITY'S DEFERRED COMPENSATION PLAN (AMENDS
NO . 90 - 2 8 , 97 - 2 4 1 and 02 - 3 57) .
NAME OF EMPLOYER: CITY OF FEDERAL WAY, WASHINGTON
EMPLOYER PLAN NUMBER: 3350
WHEREAS, the City of Federal Way ("City") has employees
rendering valuable services; and
WHEREAS,
pursuant to Resolution No.
9 a - 2 8 amended by
Resolution No. 97-241 and Resolution No. 02-357 the City Council
established a deferred compensation plan for such employees that
serves
the
interest
of
the
City
by
enabling
it
to
provide
reasonable retirement security for its employees,
by providing
increased flexibility in its personnel management system, and by
assisting in the attraction and retention of competent personnel;
and
WHEREAS, the City has determined that the continuance of
the deferred compensation plan will serve these objectives; and
WHEREAS,
amendments to the Internal Revenue Code have
been enacted that require changes to the structure of and allow
enhancements of the benefits of the deferred compensation plan;
Res. # 04-40,8 Page 1
ORIGINAL
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL
WAY HEREBY RESOLVES AS FOLLOWS:
Section
1.
Plan Form.
The
City hereby amends
and
restates the deferred compensation plan (the "Plan") in the form of
the ICMA Retirement Corporation Deferred Compensation Plan and
Trust, a copy of which is attached hereto and incorporated herein
by this reference.
Section 2.
plan Assets.
The assets of the Plan shall be
held in trust, with the City serving as trustee, for the exclusive
benefit of the Plan participants and their beneficiaries, and the
assets shall not be diverted to any other purpose.
The Trustee's
beneficial ownership of Plan assets held in the ICMA Retirement
Trust shall be held for the further exclusive benefit of the Plan
participants and their beneficiaries.
Section 3.
Plan Loans.
The Plan will not permit loans.
Section 4.
Plan Trustee.
The City hereby agrees to
serve as Trustee under the Plan.
Section 5.
Severability.
If any section,
sentence,
clause or phrase of this resolution should be held to be invalid or
unconstitutional
by
a
court
of
competent
jurisdiction,
such
invalidity or unconstitutionality shall not affect the validity or
constitutionality of any other section, sentence, clause or phrase
of this resolution.
Res. # 04-408, Page 2
Section 6.
Ratification.
Any act consistent with the
authority and prior to the effective date of the resolution is
hereby ratified and affirmed.
Sect ion 7.
Effecti ve Date.
In accordance wi th the
changes in the Internal Revenue Code, certain provisions of the
code shall be effective retroactively to January 1, 2002.
RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON, this
17th day of
February
, 2004.
MA
APPROVED AS TO FORM:
) - /I
1~~ â, ;i4:A¿~~~
CITY ATTORNEY, Patricia A. Richardson
FILED WITH THE CITY CLERK: 01/28/04
PASSED BY THE CITY COUNCIL:02/17/04
RESOLUTION NO. 04-408
K:\Resolution\DeferredCMP2004\2002-00S
Res. # 04-408, Page 3
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I C M A R E T I R E M E N T C O R P O R A T I O N
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ICMA RETIREMENT CORPORATI
The Public Sector E xp ert
457 Plan and Trust Document
DEFERRED COMPENSATION PLAN TRUST
As Amended and Restated Effective January 1, 2002
Article I. Purpose
The Employer hereby establishes the Employer's Deferred Compensation Plan and Trust,
hereafter referred to as the "Plan." The Plan consists of the provisions set forth in this
document.
The primary purpose of this Plan is to provide retirement income and other deferred benefits
to the Employees of the Employer and the Employees' Beneficiaries in accordance with the
provisions of Section 457 of the Internal Revenue Code of 1986, as amended (the "Code
This Plan shall be an agreement solely between the Employer and participating Employees.
The Plan and Trust forming a part hereof are established and shall be maintained for the
exclusive benefit of Participants and their Beneficiaries. No part of the corpus or income of
the Trust shall revert to the Employer or be used for or diverted to purposes other than the
exclusive benefit of Participants and their Beneficiaries.
Article II. Definitions
2.01 Account: The bookkeeping account maintained for each Participant reflecting the
cumulative amount of the Participant's Deferred Compensation, including any income,
gains, losses, or increases or decreases in market value attributable to the Employer's
investment of the Participant's Deferred Compensation, and further reflecting any
distributions to the Participant or the Participants Beneficiary and any fees or expenses
charged against such Participant's Deferred Compensation.
2.02 Accounting Date: Each business day that the New York Stock Exchange is open for
trading, as provided in Section 6.06 for valuing the Trust's assets.
2.03 Administrator: The person or persons named to carry out certain nondiscretionary
administrative functions under the Plan, as hereinafter described. The Employer may
remove any person as Administrator upon 60 days' advance notice in writing to such person,
in which case the Employer shall name another person or persons to act as Administrator.
The Administrator may resign upon 60 days' advance notice in writing to the Employer, in
which case the Employer shall name another person or persons to act as Administrator.
2.04 Automatic Distribution Date: April 1 of the calendar year after the Plan Year the
Participant attains age 70 -1/2 or, if later, has a Severance Event.
2.05 Beneficiary: The person or persons designated by the Participant in his or her Joinder
Agreement who shall receive any benefits payable hereunder in the event of the Participant's
death. In the event that the Participant names two or more Beneficiaries, each Beneficiary
shall be entitled to equal shares of the benefits payable at the Participant's death, unless
otherwise provided in the Participant's Joinder Agreement. If no beneficiary is designated in
the Joinder Agreement, if the Designated Beneficiary predeceases the Participant, or if the
designated Beneficiary does not survive the Participant for a period of fifteen (15) days, then
1
457 Plan and Trust Document
the estate of the Participant shall be the Beneficiary. If a married Participant resides in a
community or marital property state, the Participant shall be responsible for obtaining
appropriate consent of his or her spouse in the event the Participant designates someone
other than his or her spouse as Beneficiary. The preceding sentence shall not apply with
respect to a Deemed IRA under Article IX.
2.06 Deemed IRA: A separate account or annuity se P l established under the Plan that complies
with the requirements of Section 408(q) of the Code and any regulations promulgated
thereunder.
2.07 Deferred Compensation: The amount of Includible Compensation otherwise payable
to the Participant which the Participant and the Employer mutually agree to defer
hereunder, any amount credited to a Participant's Account by reason of a transfer under
Section 6.09 or 6.10, a rollover under Section 6.11, or any other amount which the
Employer agrees to credit to a Participant's Account.
2.08 Dollar Limitation: The applicable dollar amount within the meaning of Section
457(b)(2)(A) of the Code, as adjusted for the cost -of- living in accordance with Section
457(e)(15) of the Code.
2.09 Employee: Any individual who provides services for the Employer, whether as an
employee of the Employer or as an independent contractor, and who has been designated by
the Employer as eligible to participate in the Plan.
2.10 Employer: which is a political
subdivision, agency or instrumentality of the [State /Commonwealth] of
described in Section 457(e) (1) (A) of the Code.
2.11 457 Catch -Up Dollar Limitation: Twice the Dollar Limitation.
2.12 Includible Compensation: Includible Compensation of a Participant means the
"Participant's compensation," as defined in Section 415(c)(3) of the Code, for services
performed for the Employer. Includible Compensation shall be determined without regard
to any community property laws. Includible Compensation shall include any pre -tax
contributions to an integral part trust of the employer providing retiree health care benefits.
2.13 Joinder Agreement: An agreement entered into between an Employee and the
Employer, including any amendments or modifications thereof. Such agreement shall fix the
amount of Deferred Compensation, specify a preference among the investment alternatives
designated by the Employer, designate the Employee's Beneficiary or Beneficiaries, and
incorporate the terms, conditions, and provisions of the Plan by reference.
2.14 Normal Limitation: The maximum amount of Deferred Compensation for any
Participant for any taxable year (other than amounts referred to in Sections 6.09, 6.10, and
6.11).
2.15 Normal Retirement Age: Age 70 -1/2, unless the Participant has elected an alternate
Normal Retirement Age by written instrument delivered to the Administrator prior to a
Severance Event. A Participant's Normal Retirement Age determines the period during
2
457 Plan and Trust Document
which a Participant may utilize the 457 Catch -Up Dollar Limitation of Section 5.02(b)
hereunder. Once a Participant has to any extent utilized the catch -up limitation of Section
5.02(b), his Normal Retirement Age may not be changed.
A Participant's alternate Normal Retirement Age may not be earlier than the earliest date
that the Participant will become eligible to retire and receive immediate, unreduced
retirement benefits under the Employer's basic defined benefit retirement plan covering the
Participant (or a money purchase pension plan in which the Participant also participates if
the Participant is not eligible to participate in a defined benefit plan), and may not be later
than the date the Participant will attain age 70 -1/2. If a Participant continues employment
after attaining age 70 -1/2, not having previously elected an alternate Normal Retirement
Age, the Participant's alternate Normal Retirement Age shall not be later than the mandatory
retirement age, if any, established by the Employer, or the age at which the Participant
actually has a Severance Event if the Employer has no mandatory retirement age. If the
Participant will not become eligible to receive benefits under a basic defined benefit
retirement plan (or money purchase pension plan, if applicable) maintained by the
Employer, the Participant's alternate Normal Retirement Age may not be earlier than 65 and
may not be later than age 70-1/2.
In the event the Plan has Participants that include qualified police or firefighters (as defined
under Section 415 b 2 H ii I of the Code), a normal retirement a may be designated
g
for such qualified police or firefighters that is not earlier than age 40 or later than age 70 -1/2.
Alternatively, qualified police or firefighters may be permitted to designate a normal
retirement age that is between age 40 and age 70 -1/2.
2.16 Participant: Any Employee who has joined the Plan pursuant to the requirements of
Article IV. For purposes of section 6.11 of the Plan, the term Participant includes a former
Employee of the Employer.
2.17 Percentage Limitation: 100 percent of the participant's Includible Compensation
available to be contributed as Deferred Compensation for the taxable year.
2.18 Plan Year: The calendar year.
2.19 Retirement: The first date upon which both of the following shall have occurred with
respect to a participant: Severance Event and attainment of age 65.
2.20 Severance Event: A severance of the Participant's employment with the Employer
within the meaning of Section 457(d)(1)(A)(ii) of the Code.
In general, a Participant shall be deemed to have experienced a Severance Event for purposes
of this Plan when, in accordance with the established practices of the Employer, the
employment relationship is considered to have actually terminated. In the case of a
Participant who is an independent contractor of the Employer, a Severance Event shall be
deemed to have occurred when the Participant's contract under which services are performed
has completely expired and terminated, there is no foreseeable possibility that the Employer
will renew the contract or enter into a new contract for the Participant's services, and it is not
anticipated that the Participant will become an Employee of the Employer, or such other
events as may be permitted under the Code.
3
457 Plan and Trust Document
2.21 Trust: The Trust created under Article VI of the Plan which shall consist of all
compensation deferred under the Plan, plus any income and gains thereon, less any losses,
expenses and distributions to Participants and Beneficiaries.
Article III. Administration
3.01 Duties of the Employer: The Employer shall have the authority to make all
discretionary decisions affecting the rights or benefits of Participants which may be required
in the administration of this Plan. The Employer's decisions shall be afforded the maximum
deference permitted by applicable law.
3.02 Duties of Administrator: The Administrator, as agent for the Employer, shall
perform nondiscretionary administrative functions in connection with the Plan, including
the maintenance of Participants' Accounts, the provision of periodic reports of the status of
each Account, and the disbursement of benefits on behalf of the Employer in accordance
with the provisions of this Plan.
Article IV. Participation in the Plan
4.01 Initial Participation: An Employee may become a Participant by entering into a
Joinder Agreement prior to the beginning of the calendar month in which the Joinder
Agreement is to become effective to defer compensation not yet earned, or such other date as
may be permitted under the Code. A new employee may defer compensation in the calendar
month during which he or she first becomes an employee if a Joinder Agreement is entered
into on or before the first day on which the employee performs services for the Employer.
4.02 Amendment of Joinder Agreement: A Participant may amend an executed Joinder
Agreement to change the amount of Includible Compensation not yet earned which is to be
deferred (including the reduction of such future deferrals to zero). Such amendment shall
become effective as of the beginning of the calendar month commencing after the date the
amendment is executed, or such other date as may be permitted under the Code. A
Participant may at any time amend his or her Joinder Agreement to change the designated
Beneficiary, and such amendment shall become effective immediately.
Article V. Limitations on Deferrals
5.01 Normal Limitation: Except as provided in Section 5.02, the maximum amount of
Deferred Compensation for any Participant for any taxable year, shall not exceed the lesser of
the Dollar Limitation or the Percentage Limitation.
5.02 Catch -Up Limitations:
(a) Catch -up Contributions for Participants Age 50 and Over: A Participant who has
attained the age of 50 before the close of the Plan Year, and with respect to
whom no other elective deferrals may be made to the Plan for the Plan Year by
reason of the Normal Limitation of Section 5.01, may enter into a Joinder
Agreement to make elective deferrals in addition to those permitted by the
Normal Limitation in an amount not to exceed the lesser of (1) the applicable
4
457 Plan and Trust Document
dollar amount as defined in Section 414(v)(2)(B) of the Code, as adjusted for the
cost -of- living in accordance with Section 414(v)(2)(C) of the Code, or (2) the
excess (if any) of (i) the Participant's compensation (as defined in Section
415 (c) (3) of the Code) for the year, over (ii) any other elective deferrals of the
Participant for such year which are made without regard to this Section 5.02(a).
An additional contribution made pursuant to this Section 5.02(a) shall not, with
respect to the year in which the contribution is made, be subject to any otherwise
applicable limitation contained in Section 5.01 above, or be taken into account
in applying such limitation to other contributions or benefits under the Plan or
any other plan. This Section 5.02(a) shall not apply in any year to which a
higher limit under Section 5.02(b) applies.
(b) Last Three Years Catch -up Contribution: For each of the last three (3) taxable
years for a Participant ending before his or her attainment of Normal Retirement
Age, the maximum amount of Deferred Compensation shall be the lesser of: (1)
the 457 Catch -Up Dollar Limitation, or (2) the sum of (i) the Normal
Limitation for the taxable year, and (ii) the Normal Limitation for each prior
taxable year of the Participant commencing after 1978 less the amount of the
Participant's Deferred Compensation for such prior taxable years. A prior
taxable year shall be taken into account under the preceding sentence only if (x)
the Participant was eligible to participate in the Plan for such year, and (y)
compensation (if any) deferred under the Plan (or such other plan) was subject to
the Normal Limitation.
5.03 Sick, Vacation and Back Pay: If the Employer so elects, a Participant may defer all
or a portion of the value of the Participant's accumulated sick pay, accumulated vacation pay
and /or back pay, provided that such deferral does not cause total deferrals on behalf of the
Participant to exceed the Dollar Limitation or Percentage Limitation (including any Catch-
up Dollar Limitation) for the year of deferral. The election to defer such sick, vacation
and /or back pay must be made pursuant to a Joinder Agreement entered into before the
beginning of the month in which the amounts would otherwise be paid or made available to
the Participant, and the Participant must be an Employee in that month. In the case of sick,
vacation and back pay that is payable before the Participant has a Severance Event, the
preceding requirements are deemed to be satisfied if the Joinder Agreement providing for the
deferral is entered into before the amount is currently available.
5.04 Other Plans: Notwithstanding any provision of the Plan to the contrary, the
amount excludible from a Participant's gross income under this Plan or any other eligible
deferred compensation plan under Section 457(b) of the Code shall not exceed the limits set
forth in Sections 457(b) and 414(v) of the Code.
5.05 Excess Deferrals: Any amount that exceeds the maximum Dollar Limitation or
Percentage Limitation (including any applicable Catch -Up Dollar Limitation) for a taxable
year, shall constitute an excess deferral for that taxable year. Any excess deferral shall be
distributed in accordance with the requirements for excess deferrals under the Code and
Section 1.457 -4(e) of the Income Tax Regulations.
5
457 Plan and Trust Document
Article VI. Trust and Investment of Accounts
6.01 Investment of Deferred Compensation: A Trust is hereby created to hold all the
assets of the Plan (except Deemed IRA contributions and earnings thereon held pursuant to
P g P
Article IX) for the exclusive benefit of Participants and Beneficiaries, except that expenses
and taxes may be paid from the Trust as provided in Section 6.03. The trustee shall be the
Employer or such other person that agrees to act in that capacity hereunder.
6.02 Investment Powers: The trustee or the Administrator, acting as agent for the trustee,
shall have the powers listed in this Section with respect to investment of Trust assets, except
to the extent that the investment of Trust assets is directed by Participants, pursuant to
Section 6.05.
(a) To invest and reinvest the Trust without distinction between principal and
income in common or preferred stocks, shares of regulated investment companies
and other mutual funds, bonds, loans, notes, debentures, certificates of deposit,
contracts with insurance companies including but not limited to insurance,
individual or group annuity, deposit administration, guaranteed interest
contracts, and deposits at reasonable rates of interest at banking institutions
including but not limited to savings accounts and certificates of deposit. Assets
of the Trust may be invested in securities that involve a higher degree of risk than
investments that have demonstrated their investment performance over an
extended period of time.
(b) To invest and reinvest all or any part of the assets of the Trust in any common,
collective or commingled trust fund that is maintained by a bank or other
institution and that is available to Employee plans described under Sections 457
or 401 of the Code, or any successor provisions thereto, and during the period of
time that an investment through any such medium shall exist, to the extent of
participation of the Plans the declaration of trust of such commonly collective, or
commingled trust fund shall constitute a part of this Plan.
(c) To invest and reinvest all or any part of the assets of the Trust in any group
annuity, deposit administration or guaranteed interest contract issued by an
insurance company or other financial institution on a commingled or collective
basis with the assets of any other 457 plan or trust qualified under Section 401(a)
of the Code or any other plan described in Section 401(a)(24) of the Code, and
such contract may be held or issued in the name of the Administrator, or such
custodian as the Administrator may appoint, as agent and nominee for the
Employer. During the period that an investment through any such contract shall
exist, to the extent of participation of the Plan, the terms and conditions of such
contract shall constitute a part of the Plan.
(d) To hold cash awaiting investment and to keep such portion of the Trust in cash
or cash balances, without liability for interest, in such amounts as may from time
to time be deemed to be reasonable and necessary to meet obligations under the
Plan or otherwise to be in the best interests of the Plan.
6
457 Plan and Trust Document
(e) To hold, to authorize the holding of, and to register any investment to the Trust
in the name of the Plan, the Employer, or any nominee or agent of any of the
foregoing, including the Administrator, or in bearer form, to deposit or arrange
for the deposit of securities in a qualified central depository even though, when
so deposited, such securities may be merged and held in bulk in the name of the
nominee of such depository with other securities deposited therein by any other
person, and to organize corporations or trusts under the laws of any jurisdiction
for the purpose of acquiring or holding title to any property for the Trust, all
with or without the addition of words or other action to indicate that property is
held in a fiduciary or representative capacity but the books and records of the
Plan shall at all times show that all such investments are part of the Trust.
(0 Upon such terms as may be deemed advisable by the Employer or the
Administrator, as the case may be, for the protection of the interests of the Plan
or for the preservation of the value of an investment, to exercise and enforce by
suit for legal or equitable remedies or by other action, or to waive any right or
claim on behalf of the Plan or any default in any obligation owing to the Plan, to
renew, extend the time for payment of, agree to a reduction in the rate of interest
on, or agree to any other modification or change in the terms of any obligation
owing to the Plan, to settle, compromise, adjust, or submit to arbitration any
claim or right in favor of or against the Plans to exercise and enforce any and all
rights of foreclosure, bid for property in foreclosure, and take a deed in lieu of
foreclosure with or without paying consideration therefor, to commence or
defend suits or other legal proceedings whenever any interest of the Plan requires
it, and to represent the Plan in all suits or legal proceedings in any court of law or
equity or before any body or tribunal.
(g) To employ suitable consultants, depositories, agents, and legal counsel on behalf
of the Plan.
(h) To open and maintain any bank account or accounts in the name of the Plan, the
Employer, or any nominee or agent of the foregoing, including the
Administrator, in any bank or banks.
(i) To do any and all other acts that may be deemed necessary to carry out any of
the powers set forth herein.
6.03 Taxes and Expenses: All taxes of any and all kinds whatsoever that may be levied or
assessed under existing or future laws upon the Plan, or in respect to the Trust, or the
income thereof, and all commissions or acquisitions or dispositions of securities and
similar expenses of investment and reinvestment of the Trust, shall be paid from the
Trust. Such reasonable compensation of the Administrator, as may be agreed upon
from time to time by the Employer and the Administrator, and reimbursement for
reasonable expenses incurred by the Administrator in performance of its duties
hereunder (including but not limited to fees for legal, accounting, investment and
custodial services) shall also be paid from the Trust.
7
457 Plan and Trust Document
6.04 Payment of Benefits: The payment of benefits from the Trust in accordance with
the terms of the Plan may be made by the Administrator, or by any custodian or other
person so authorized by the Employer to make such disbursement. The Administrator,
custodian or other person shall not be liable with respect to any distribution of Trust assets
made at the direction of the Employer.
6.05 Investment Funds: In accordance with uniform and nondiscriminatory rules
established by the Employer and the Administrator, the Participant may direct his or her
Accounts to be invested in one (1) or more investment funds available under the Plan;
provided, however, that the Participant's investment directions shall not violate any
investment restrictions established by the Employer. Neither the Employer, the
Administrator, nor any other person shall be liable for any losses incurred by virtue of
following such directions or with any reasonable administrative delay in implementing such
directions.
6.06 Valuation of Accounts: As of each Accounting Date, the Plan assets held in each
investment fund offered shall be valued at fair market value and the investment income and
gains or losses for each fund shall be determined. Such investment income and gains or
losses shall be allocated proportionately among all Account balances on a fund -by -fund basis.
The allocation shall be in the proportion that each such Account balance as of the
immediately preceding Accounting Date bears to the total of all such Account balances as of
that Accounting Date. For purposes of this Article, all Account balances include the
Account balances of all Participants and Beneficiaries.
6.07 Participant Loan Accounts: Participant Loan Accounts shall be invested in
accordance with Section 8.03 of the Plan. Such Accounts shall not share in any investment
income and gains or losses of the investment funds described in Sections 6.05 and 6.06.
6.08 Crediting of Accounts: The Participant's Account shall reflect the amount and value
of the investments or other property obtained by the Employer through the investment of
the Participant's Deferred Compensation pursuant to Sections 6.05 and 6.06. It is
anticipated that the Employer's investments with respect to a Participant will conform to the
investment preference specified in the Participant's Joinder Agreement, but nothing herein
shall be construed to require the Employer to make any particular investment of a
Participant's Deferred Compensation. Each Participant shall receive periodic reports, not
less frequently than annually, showing the then current value of his or her Account.
6.09 Post Severance Transfers Among Eligible Deferred Compensation Plans:
(a) Incoming Transfers: A transfer may be accepted from an eligible deferred
compensation plan maintained by another employer and credited to a
Participant's or Beneficiary's Account under the Plan if: (i) in the case of a
transfer for a Participant, the Participant has had a Severance Event with that
employer and become an Employee of the Employer; (ii) the other employer's
plan provides that such transfer will be made; and (iii) the Participant or
Beneficiary whose deferred amounts are being transferred will have an amount
immediately after the transfer at least equal to the deferred amount immediately
before the transfer. The Employer may require such documentation from the
predecessor plan as it deems necessary to effectuate the transfer in accordance
8
457 Plan and Trust Document
with Section 457(e)(10) of the Code, to confirm that such plan is an eligible
deferred compensation plan within the meaning of Section 457(b) of the Code,
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 and the Administrator agree to hold such other assets under the Plan.
(b) Outgoing Transfers: An amount may be transferred to an eligible deferred
compensation plan maintained by another employer, and charged to a
Participant's or Beneficiary's Account under this Plan, if: (i) in the case of a
transfer for a Participant, the Participant has a Severance Event with the
Employer and becomes an employee of the other employer; (ii) the other
employer's plan provides that such transfer will be accepted; (iii) the Participant
or Beneficiary and the employers have signed such agreements as are necessary to
assure that the Employer's liability to pay benefits to the Participant has been
discharged and assumed by the other employer; and (iv) the Participant or
Beneficiary whose deferred amounts are being transferred will have an amount
immediately after the transfer at least equal to the deferred amount immediately
before the transfer. The Employer may require such documentation from the
other plan as it deems necessary to effectuate the transfer, to confirm that such
plan is an eligible deferred compensation plan within the meaning of Section
457(b) of the Code, and to assure that transfers are provided for under such plan.
Such transfers shall be made only under such circumstances as are permitted
under Section 457 of the Code and the regulations thereunder.
6.10 Transfers Among Eligible Deferred Compensation Plans of the Employer:
(a) Incoming Transfers. A transfer may be accepted from another eligible deferred
compensation plan maintained by the Employer and credited to a Participant's or
Beneficiary's Account under the Plan if: (i) the Employer's other plan provides
that such transfer will be made; (ii) the Participant or Beneficiary whose deferred
amounts are being transferred will have an amount immediately after the transfer
at least equal to the deferred amount immediately before the transfer; and (iii) the
Participant or Beneficiary whose deferred amounts are being transferred is not
eligible for additional annual deferrals in the Plan unless the Participant or
Beneficiary is performing services for the Employer.
(b) Outgoing Transfers. A transfer may be accepted from another eligible deferred
compensation plan maintained by the Employer and credited to a Participant's or
Beneficiary's Account under the Plan if: (i) the Employer's other plan provides
that such transfer will be accepted; (ii) the Participant or Beneficiary whose
deferred amounts are being transferred will have an amount immediately after the
transfer at least equal to the deferred amount immediately before the transfer; and
(iii) the Participant or Beneficiary whose deferred amounts are being transferred is
not eligible for additional annual deferrals in the Employer's other eligible
deferred compensation plan unless the Participant or Beneficiary is performing
services for the Employer.
9
457 Plan and Trust Document
6.11 Eligible Rollover Distributions:
(a) Incoming Rollovers: An eligible rollover distribution may be accepted from an
eligible retirement plan and credited to a Participant's Account under the Plan.
The Employer may require such documentation from the distributing plan as it
deems necessary to effectuate the rollover in accordance with Section 402 of the
Code and to confirm that such plan is an eligible retirement plan within the
meaning of Section 402(c)(8)(B) of the Code. The Plan shall separately account
(in one or more separate accounts) for eligible rollover distributions from any
eligible retirement plan that is not an eligible deferred compensation plan
described in
d Section 457(b) of the maintained 57() e Code mai to ned b an eligible governmental
Y g g
employer described in Section 457(e)(1)(A) of Code.
(b) Outgoing Rollovers: Notwithstanding any provision of the Plan to the contrary
that would otherwise limit a distributee's election under this Section, a
distributee may elect, at the time and in the manner prescribed by the
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.
(c) Definitions:
(1) Eligible Rollover Distribution: An eligible rollover distribution is any
distribution of all or any portion of the balance to the credit of the
distributee, except that an eligible rollover distribution does not
include: any distribution that is one of a series of substantially equal
periodic payments (not less frequently than annually) made for the life
(or life expectancy) of the distributee or the joint lives (or joint life
expectancies) of the distributee and the distributee's designated
beneficiary, or for a specified period of ten years or more; any
distribution to the extent such distribution is required under Sections
401(a)(9) and 457(d)(2) of the Code; and any distribution made as a
result of an unforeseeable emergency of the employee. For purposes of
distributions from other eligible retirement plans rolled over into this
Plan, the term eligible rollover distribution shall not include 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).
()Eli
gible Retirement Plan: An eligible retirement plan is an individual
retirement account described in Section 408(a) of the Code, an
individual retirement annuity described in Section 408(b) of the Code,
an annuity plan described in Sections 403(a) or 403(b) of the Code, a
qualified trust described in Section 401(a) of the Code, or an eligible
deferred compensation plan described in Section 457(b) of the Code
which is maintained by an eligible governmental employer described in
Section 457(e)(1)(A) of the Code, that accepts the distributee's eligible
rollover distribution.
10
i
457 Plan and Trust Document
(3) 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 Section 414(p) of the Code, are distributees with regard to
the interest of the spouse or former spouse.
(4) Direct Rollover: A direct rollover is a payment by the plan to the
eligible retirement plan specified by the distributee.
6.12 Trustee to Trustee Transfers to Purchase Permissive Service Credit: All or a
portion of a Participant's Account may be transferred directly to the trustee of a defined
benefit governmental plan (as defined in Section 414(d) of the Code) if such transfer is (A)
for the purchase of permissive service credit (as defined in Section 415(n)(3)(A) of the Code)
under such plan, or (B) a repayment to which Section 415 of the Code does not apply by
reason of subsection (k)(3) thereof, within the meaning of Section 457(e)(17) of the Code.
6.13 Treatment of Distributions of Amounts Previously Rolled Over From 401(a) and
403(b) Plans and IRAs. For purposes of Section 72(t) of the Code, a distribution from this
Plan shall be treated as a distribution from a qualified retirement plan described in Section
4974(c)(1) of the Code to the extent that such distribution is attributable to an amount
transferred to an eligible deferred compensation plan from a qualified retirement plan (as
defined in Section 4974(c) of the Code).
6.13 Employer Liability: In no event shall the Employer's liability to pay benefits to a
Participant under this Plan exceed the value of the amounts credited to the Participant's
Account; neither the Employer nor the Administrator shall be liable for losses arising from
depreciation or shrinkage in the value of any investments acquired under this Plan.
Article VII. Benefits
7.01 Retirement Benefits and Election on Severance Event:
(a) General Rule: Except as otherwise provided in this Article VII, the distribution
of a Participants Account shall commence as of a Participant's Automatic
Distribution Date, and the distribution of such benefits shall be made in
accordance with one of the payment options described in Section 7.02.
Notwithstanding the foregoing, but subject to the following paragraphs of this
Section 7.01, the Participant may elect following a Severance Event to have the
distribution of benefits commence on a fixed determinable date other than that
described in the preceding sentence, but not later than April 1 of the year
following the year of the Participant's Retirement or attainment of age 70 -1/2,
whichever is later. The Participant's right to change his or her election with
respect to commencement of the distribution of benefits shall not be restrained
by this Section 7.01. Notwithstanding the foregoing, the Administrator, in order
to ensure the orderly administration of this provision, may establish a deadline
after which such election to defer the commencement of distribution of benefits
shall not be allowed.
11
457 Plan and Trust Document
(b) Loans: Notwithstanding the foregoing provisions of this Section 7.01, no
election to defer the commencement of benefits after a Severance Event shall
operate to defer the distribution of any amount in the Participant's Loan
Account in the event of a default of the Participant's loan.
7.02 Payment Options: As provided .Ol
d d in Sections 7.04 and .0
Ym P p 7.01, 7 7 5, a Participant may
elect to have value of the Participant's Account distributed in accordance with one of the
following payment options, provided that such option is consistent with the limitations set
forth in Section 7.03.
(a) Equal monthly, quarterly, semi -annual or annual payments in an amount
chosen by the Participant, continuing until his or her Account is exhausted;
(b) One lump -sum payment;
(c) Approximately equal monthly, quarterly, semi annual or annual payments,
calculated to continue for a period certain chosen by the Participant.
(d) Annual Payments equal to the minimum distributions required under Section
401(a)(9) of the Code, including the incidental death benefit requirements of
Section 401 (a) (9) (G), over the life expectancy of the Participant or over the life
expectancies of the Participant and his or her Beneficiary.
(e) Payments equal to payments made by the issuer of a retirement annuity policy
acquired by the Employer.
(f) A split distribution under which payments under options (a), (b), (c) or (e)
commence or are made at the same time, as elected by the Participant under
Section 7.01, provided that all payments commence (or are made) by the latest
benefit commencement date under Section 7.01.
(g) Any other payment option elected by the Participant and agreed to by the
Employer and Administrator.
A Participant's selection of a payment option made after December 31, 1995, under
Subsections (a), (c), or (g) above may include the selection of an automatic annual cost -of-
living increase. Such increase will be based on the rise in the Consumer Price Index for All
Urban Consumers (CPI -U) from the third quarter of the last year in which a cost -of- living
increase was provided to the third quarter of the current year. Any increase will be made in
periodic payment checks beginning the following January.
7.03 Limitation on Options: No payment option may be selected by a Participant under
subsections 7.02(a) or (c) unless the amount of any installment is not less than $100. No
payment option may be selected by a Participant under Sections 7.02, 7.04, or 7.05 unless it
satisfies the requirements of Sections 401(a)(9) and 457(d)(2) of the Code, including that
payments commencing before the death of the Participant shall satisfy the incidental death
benefit requirements under Section 401(a)(9)(G).
12
457 Plan and Trust Document
7.04 Post Retirement Death Benefits:
(a) Should the Participant die after he /she has begun to receive benefits under a
payment option, the remaining payments, if any, under the payment option shall
continue until the Administrator receives notice of the Participant's death. Upon
notification of the Participant's death, benefits shall be payable to the
Participant's Beneficiary commencing not later than December 31 of the year
following the year of the Participant's death, provided that the Beneficiary may
elect to begin benefits earlier than that date.
(b) In the event that the Beneficiary dies before the payment of death benefits has
commenced or been completed, the remaining value of the Participant's Account
shall be paid to the estate of the Beneficiary in a lump sum. In the event that the
Participant's estate is the Beneficiary, payment shall be made to the estate in a
lump sum.
7.05 Pre Retirement Death Benefits:
(a) Should the Participant die before he or she has begun to receive the benefits
provided by Section 7.01, the value of the Participant's Account shall be payable
to the Beneficiary commencing not later than December 31 of the year following
the year of the Participant's death, provided that the Beneficiary may elect to
begin benefits earlier than that date.
(b) In the event that the Beneficiary dies before the payment of death benefits has
commenced or been completed, the remaining value of the Participant's Account
shall be paid to the estate of the Beneficiary in a lump sum. In the event that the
Participant's estate is the Beneficiary, payment shall be made to the estate in a
lump sum.
7.06 Unforeseeable Emergencies:
(a) In the event an unforeseeable emergency occurs, a Participant or Beneficiary may
apply to the Employer to receive that part of the value of his or her Account that
is reasonably needed to satisfy the emergency need. If such an application is
approved by the Employer, the Participant or Beneficiary shall be paid only such
amount as the Employer deems necessary to meet the emergency need, but
payment shall not be made to the extent that the financial hardship may be
relieved through cessation of deferral under the Plan, insurance or other
reimbursement, or liquidation of other assets to the extent such liquidation
would not itself cause severe financial hardship.
(b) An unforeseeable emergency shall be deemed to involve only circumstances of
severe financial hardship to the Participant or Beneficiary resulting from a sudden
unexpected illness, accident, or disability of the Participant, Beneficiary, or of the
spouse or dependent (as defined in Section 152(a) of the Code) of the Participant
or Beneficiary, loss of the Participant's or Beneficiary's property due to casualty
(including the need to rebuild a home following damage to a home not otherwise
covered by homeowner's insurance, e.g., as a result of a natural disaster), or other
13
457 Plan and Trust Document
similar and extraordinary unforeseeable circumstances arising as a result of events
beyond the control of the Participant or Beneficiary. The imminent foreclosure
of or eviction from the Participant's or Beneficiary's primary residence may
constitute an unforeseeable emergency. In addition, the need to pay for medical
Il i expenses, including non refundable deductibles, as well as for the cost of
prescription drug medication may constitute an unforeseeable emergency. The
need to pay for the funeral expenses of a spouse or a dependent (as defined in
Section 152(a)) of the Code may also constitute an unforeseeable emergency.
Absent extraordinary circumstances, the need to send a Participant's or
Beneficiary's child to college or to purchase a new home shall not be considered
!!i?. unforeseeable emergencies. The determination as to whether such an
unforeseeable emergency exists shall be based on the merits of each individual
case.
7.07 De Minimis Accounts: Notwithstanding the foregoing provisions of this Article, if
j!' the value of a Participant's Account is less than $1,000, the Participant's Account shall be
I! paid to the Participant in a single lump sum distribution, provided that (a) no amount has
I;r. been deferred under the Plan with respect to the Participant during the 2 -year period ending
on the date of the distribution and (b) there has been no prior distribution under the Plan to
the Participant pursuant to this Section 7.07. If the value of the Participant's Account is at
least $1,000 but not more than the dollar limit under Section 411(a)(11)(A) of the Code and
(a) no amount has been deferred under the Plan with respect to the Participant during the 2-
year period ending on the date of the distribution and (b) there has been no prior
distribution under the Plan to the Participant pursuant to this Section 7.07, the Participant
may elect to receive his or her entire Account. Such distribution shall be made in a lump
Ji, sum.
!;w
Article VIII. Loans to Participants
v 8.01 Availability, of Loans to Participants:
(a) The Employer may elect to make loans available to Participants in this Plan. If
the Employer has elected to make loans available to Participants, a Participant
may apply for a loan from the Plan subject to the limitations and other provisions
of this Article. However, no loans are available from Deemed IRAs.
(b) The Employer shall establish written guidelines governing the granting of loans,
!'!I provided that such guidelines are approved by the Administrator and are not
inconsistent with the provisions of this Article, and that loans are made available
to all Participants on a reasonably equivalent basis.
8.02 Terms and Conditions of Loans to Participants:
Any loan by the Plan to a Participant under Section 8.01 of the Plan shall satisfy the
following requirements:
I (a) Availability. Loans shall be made available to all Participants on a reasonably
equivalent basis.
14
457 Plan and Trust Document 1
(b) Interest Rate. Loans must be adequately secured and bear a reasonable interest
rate.
(c) Loan Limit. No Participant loan shall exceed the present value of the
Participant's Account.
(d) Foreclosure. In the event of default on any installment payment, the outstanding
balance of the loan shall be a deemed distribution. In such event, an actual
distribution of a plan loan offset amount will not occur until a distributable event
occurs in the Plan.
(e) Reduction of Account. Notwithstanding any other provision of this Plan, the
portion of the Participant's Account balance used as a security interest held by
the Plan by reason of a loan outstanding to the Participant shall be taken into
account for purposes of determining the amount of the Account balance payable
at the time of death or distribution, but only if the reduction is used as
repayment of the loan.
(f) Amount of Loan. At the time the loan is made, the principal amount of the loan
plus the outstanding balance (principal plus accrued interest) due on any other
outstanding loans to the Participant from the Plan and from all other plans of the
Employer that are either eligible deferred compensation plans described in
section 457(b) of the Code or qualified employer plans under Section 72(p)(4) of
the Code shall not exceed the lesser of:
(1) $50,000, reduced by the excess (if any) of
(a) The highest outstanding balance of loans from the Plan during
the one (1) year period ending on the day before the date on which the
loan is made, over
(b) The outstanding balance of loans from the Plan on the date on
which such loan is made; or
(2) One -half of the value of the Participant's interest in all of his or her
Accounts under this Plan.
15
I 457 Plan and Trust Document
(g) Application for Loan. The Participant must give the Employer adequate written
notice, as determined by the Employer, of the amount and desired time for
receiving a loan. No more than one (1) loan may be made by the Plan to a
Participant's in any calendar year No loan shall be approved if an existing loan
I from the Plan to the Participant is in default to any extent.
(h) Length of Loan. Any loan issued shall require the Participant to repay the loan
in substantially equal installments of principal and interest, at least monthly, over
1 a period that does not exceed five (5) years from the date of the loan; provided,
however, that if the proceeds of the loan are applied by the Participant to acquire
any dwelling unit that is to be used within a reasonable time (determined at the
time of the loan is made) after the loan is made as the principal residence of the
Participant, the five (5) year limit shall not apply. In this event, the period of
f repayment shall not exceed a reasonable period determined by the Employer.
Principal installments and interest payments otherwise due may be suspended for
up to one (1) year during an authorized leave of absence, if the promissory note
so provides, but not beyond the original term permitted under this subsection
(h), with a revised payment schedule (within such term) instituted at the end of
such period of suspension.
(i) Prepayment. The Participant shall be permitted to repay the loan in whole or in
part at any time prior to maturity, without penalty.
(j) Promissory Note. The loan shall be evidenced by a promissory note executed by
the Participant and delivered to the Employer, and shall bear interest at a
reasonable rate determined by the Employer.
(k) Security. The loan shall be secured by an assignment of the participant's right,
title and interest in and to his or her Account.
(1) Assignment or Pledge. For the purposes of paragraphs (f) and (g), assignment or
pledge of any portion of the Participant's interest in the Plan and a loan, pledge,
or assignment with respect to any insurance contract purchased under the Plan,
will be treated as a loan.
T
(m) Other Terms and Conditions. The Employer shall fix such other terms and
conditions of the loan as it deems necessary to comply with legal requirements, to
maintain the qualification of the Plan and Trust under Section 457 of the Code,
or to prevent the treatment of the loan for tax purposes as a distribution to the
1 Participant.
The Employer, in its discretion for any reason, may also fix other terms and conditions of the
Hi loan, including, but not limited to, the provision of grace periods following an event of
default, not inconsistent with the provisions of this Article and Section 72(p) of the Code,
and any applicable regulations thereunder.
I
i
16
1
i
� 457 Plan and Trust Document �
8.03 Participant Loan Accounts:
(a) Upon approval of a loan to a Par_ticipant by the Employer, an amount not in
excess of the loan shall be transferred from the Participant's other investment
fund(s), described in Section 6.05 of the Plan, to the Participant's Loan Aecount
as of the Accounting Date immediately preceding the agreed upon date on which
the loan is to be made.
(b) The assets of a Participant s Loan Account may be invested and reinvested only
in promissory notes received by the Plan from the �Participant as consideration for
a loan permitted by Section 8.01 of the Plan or in cash. Uninvested cash
balances in a Participant s Loan Account shall not bear interest. Neither the
Employer, the Administrator, nor any other person shall be liable for any loss, or
by reason of any breack, that results from the Participant's exercise of such
control.
(c) Repayment of principal and payment of interest shall be made by payroll
deduction or, where repayment cannot be made by payroll deduction, by check,
and shall be invested in one (1) or more other investment funds, in accordance
with Section 6.05 of the Plan, as of the next Accounting Date after payment
thereof to the Trust. The amount so invested shall be deducted from the
Farticipant's Loan Account.
(d) The Employer shall have the authority to establish other reasonable rules, not
inconsistent with the provisions of the Plan, governing the establishment and
maintenance of Participant Loan Accounts.
Article IX. Deemed IRAs
9.01 General: This Article IX of the Plan reflects section 602 of the Economic Growth
and Tax Relief Reconciliation Act of 2001 ("EGTRRA"), as amended by the Job Creation
and Worker Assistance Act of 2002. This Article is intended as good faith compliance with
the requirements of EGTRRA and is to be construed in accordance with EGTRRA and
guidance issued thereunder. This Article IX shall supercede the provisions of the Plan to the
extent that those provisions are inconsistent with the provisions of this Article IX.
Effective for Plan Years beginning after December 31, 2002, the Employer may elect to
allow Employees to make voluntary employee contributions to a separat� account or annuity
established under the Plan that complies with the requirements of Section 408(q) of the
Code and any regulations promulgated thereunder (a "Deemed IRA"). The Plan shall
establish a separate account for the designated Deemed IRA contributions of each Employee
and any earnings properly allocable to the contributions, and maintain separate
recordkeeping with respect to each such Deemed IRA.
9.02 Voluntary Employee Contributions: For purposes of this Article, a voluntary
employee contribution means any contribution (other than a mandatory contribution within
the meaning of Section 411(c)(2) of the Code) that is made by the Employee and which the
17
� 457 Plan and Trust Document •
Employee has designated, at or prior to the time of making the contribution, as a
contribution to which this Article applies.
9.03 Deemed IRA Trust Requirements: This Article shall satisfy the trust requirement
under Section 408(q) of the Code and the regulations thereto. IRAs established pursuant to
this Article shall be held in one or more trusts or custodial accounts (the "Deemed IRA
Trusts"), which shall be separate from the Trust established under the Plan to hold
contributions other than Deemed IRA contributions. The Deemed IRA Trusts sha11 satisfy
the applicable requirements of Sections 408 and 408A of the Code, which requirements are
set forth in section 9.05 and 9.06, respectively, and shall be established with a trustee or
custodian meeting the requirements of Section 408(a){2) of the Code ("Deemed IRA
Trustee"). To the extent that the assets of any Deemed IRAs established pursuant to this
Article are held in a Deemed IRA Trust satisfying the requirements of this Section 9.03, such
Deemed IRA Trust, and any amendments thereto, is hereby adopted as a trust maintained
under this Plan with respect to the assets held therein, and the provisions of such Deemed
IRA Trust shall control so long as any assets of any Deemed IRA are held thereunder.
9.04 Reporting Duties: The Deemed IRA Trustee shall be subject to the reporting
requirements of Section 408(i) of the Code with respect to all Deemed IRAs that are
established and maintained under the Plan.
9.05 Deemed Traditional IRA Requirements: Deemed IRAs established in the form of
traditional IRAs shall satisfy the following requirements:
(a) Exclusive Benefit. The Deemed IRA account shall �be established for the exclusive
benefit of an Employee or his or her Beneficiaries.
(b) Maximum Annual Contributions.
(1) Except in the case of a rollover contribution (as permitted by Sections 402(c),
402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10), 408(d)(3) and 457(e)(16) of the
Code), no contributions will be accepted unless they are in cash, and the total of
such contributions shall not exceed:
$3,000 for any taxable year beginning in 2002 through 2004;
$4,000 for any taxable year beginning in 2005 through 2007; and
$5,000 for any taxable year beginning in 2008 and years thereafter.
After 2008, the limit will be adjusted by the Secretary of the Treasury for
cost-of-living increases under Section 219(b)(5)(C) of the Code. Such
adjustments will be in multiples of $500.
(2) In the case of an Employee who is 50 or older, the annual cash contribution
limit is increased by:
$500 for any taxable year beginning in 2002 through 2005; and
$1,000 for any taxable year beginning in 2006 and years thereafter.
(3) No contributions will be accepted under a SIMPLE IRA plan established by
any employer pursuant to Section 408(p) of the Code. Also, no transfer or
:
• 457 Plan and Trust Document •
rollover of funds attributable to contributions made by a particular employer
under its SIMPLE IRA plan will be accepted from a SIMPLE IRA, that is, an
IRA used in conjunction with a SIMPLE IRA plan, prior to the expiration of the
2-year period beginning on the date the Employee first participated in that
employer's SIMPLE IRA plan.
(c) Collectibles. If the Deemed IRA Trust acquires collectibles within the
meaning of Section 408(m) of the Code after December 31, 1981, Deemed IRA Trust
assets will be treated as a distribution in an amount equal to the cost of such collectibles.
(d) Life Insurance Contracts. No part of the Deemed IRA Trust funds will
be invested in life insurance contracts.
(e) Minimum Rec�uired Distributions.
(1) Notwithstanding any provision of this Deemed IRA to the
contrary, the distribution of the Employee's interest in the account sha11
be made in accordance with the requirements o€Section 408(a)(6) of the
Code and the regulations thereunder, the provisions of which are herein
incorporated by reference. If distributions are made from an annuity
contract purchased from an insurance company, distributions thereunder
must satisfy the requirements of Q&A-4 of section 1.401(a)(9)-6T of the
Temporary Income T� Regulations, rather than paragraphs (2), (3) and
(4) below and section 9.05(�. The required minimum distributions
calculated for this IRA may be withdrawn from another IRtI of the
Employee in accordance with Q&A-9 of section 1.408-8 of the Income
Tax Regulations.
(2) The entire value of the account of the Employee for whose benefit
the account is maintained will commence to be distributed no later than
the first day of April following the calendar year in which such Employee
attains age 70-1/2 (the "required beginning date") over the life of such
Employee or the lives of such Employee and his or her Beneficiary.
(3) The amount to be distributed each year, beginning with the
calendar year in which the Employee attains age 70-1/2 and continuing
through the year of death, shall not be less than the quotient obtained by
dividing the value of the IRA (as determined under section 9.05(�(3)) as
of the end of the preceding year by the distribution period in the Uniform
Lifetime Table in Q&A-2 of section 1.401(a) (9)-9 of the Income Taac
Regulations, using the Employee's age as of his or her birthday in the year.
However, if the Employee's sole Beneficiary is his or her surviving spouse
and such spouse is more than 10 years younger than the Employee, then
the distribution period is determined under the Joint and Last Survivor
Table in Q&A-3 of section 1.401(a) (9)-9 of the Income Tax Regulations,
using the ages as of the Employee's and spouse's birthdays in the year.
(4) The required minimum distribution for the year the Employee
attains age 70-1/2 can be made as late as April 1 of the following year.
19
� 457 Plan and Trust Document •
The required minimum distribution for any other year must be made by
the end of such year.
(fl Distribution Upon Death.
(1) Death On or After Re�uired Be�i Date. If the Employee dies
on or after the required beginning date, the remaining portion of his or
her interest will be distributed at least as rapidly as follows:
(A) If the Beneficiary is someone other than the Employee's
surviving spouse, the remaining interest will be distributed over
the remaining life expectancy of the Beneficiary, with such life
expectancy determined using the Beneficiary's age as of his or her
birthday in the year following the year of the Employee's death, or
over the period described in paragraph (1) (C) below if longer.
(B) If the Employee's sole Beneficiary is the Employee's
surviving spouse, the remaining interest will be distributed over
such spouse's life or over the period described in paragraph (1)(C)
below if longer. Any interest remaining after such spouse's death
will be distributed over such spouse's remaining life expectancy
determined using the spouse's age as of his or her birthday in the
year of the spouse's death, or, if the distributions are being made
over the period described in paragraph (1) (C) below, over such
period.
(C} If there is no Beneficiary, or if applicable by operation of
paragraph (1)(A) or (1)(B) above, the remaining interest will be
distributed over the Employee's remaining life expectancy
determined in the year of the Employee's death.
(D) The amount to be distributed each year under paragraph .
(1)(A), (B) or (C), beginning with the calendar year following the
calendar year of the Employee's death, is the quotient obtained by
dividing the value of the IRA as of the end of the preceding year
by the remaining life expectancy specified in such paragraph. Life
expectancy is determined using the Single Life Table in Q&A-1 of
section 1.401(a)(9)-9 of the Income Single Life Tax Regulations.
If distributions are being made to a surviving spouse as the sole Beneficiaty,
such spouse's remaining life expectancy for a year is the number in the
Single Life Table corresponding to such spouse�s age in the year. In all .
other cases, remaining life expectancy for a year is the number in the Single
Life Table corresponding to the Beneficiary's or Employee's age in the year
specified in paragraph (1)(A), (B) or (C) and reduced by 1 for each
subsequent year.
(2) Death Before Required Beginning Date. If the Employee dies before
the required beginning date, his or her entire interest will be distributed at
least as rapidly as follows:
�
• 457 Plan and Trust Document �
(A) If the Beneficiary is someone other than the Employee's
surviving spouse, the entire interest will be distributed, starting by
the end of the calendar year following the calendar year of the
Employee's death, over the remaining life expectancy of the
Beneficiary, with such life expectancy determined using the age of
the Beneficiary as of his or her birthday in the year following the
year of the Employee's death, or, if elected, in accordance with
paragraph (2)(C) below.
(B) If the Employee's sole Beneficiary is the Employee's surviving
spouse, the entire interest will be distributed, starting by the end of
the calendar year following the calendar year af the Employee's
death (or by the end of the calendar year in which the Etr►ployee
would have attained age 70-1/2, if later), over such spouse's life, or,
if elected, in accordance with paragraph (2) (C) below. If the
surviving spouse dies before distributions are required to begin, the
remaining interest will be distributed, starting by the end of the
calendar year following the calendar year of the spouse's death, over
the spouse's Beneficiary's remaining life expectancy determined
using such Beneficiary's age as of his or her birthday in the year
following the death of the spouse, or, if elected, will be distributed
in accordance with paragraph (2)(C) below. If the surviving spouse
dies after distributions are required to begin, any remaining interest
will be distributed over the spouse's remaining life expectancy
determined using the spouse's age as of his or her birthday in the
year of the spouse's death.
(C) If there is no Beneficiary, or if applicable by operation of
paragraph (2)(A) or (2)(B) above, the entire interesr will be
distri6uted by the end of the calendar year containing the fifth
anniversary of the Beneficiary's death (or of the spouse's death in
the case of the surviving spouse's death before distributions are
required to begin under paragraph (2)(B) above).
(D) The amount to be distributed each year under paragraph
(2)(A) or (B) is the quotient obtained by dividing the value of the
IRA as of the end of the preceding year by the remaining life
expectancy specified in such paragraph. Life expectancy is
determined using the Single Life Table in Q&A-1 of section
1.401(a) (9)-9 of the Income Tax Regulations. If distributions are
being made to a surviving spouse as the sole Beneficiary, such
spouse's remaining life expectancy for a year is the number in the
Single Life Table corresponding to the Beneficiary's age in the year
specified in paragraph (2) (A) or (B) and reduced by 1 for each
subsequent year.
(E) The "value" of the IRA includes the amount of any
outstanding rollover, transfer and recharacterization under Q&As-
7 and -8 of section 1.408-8 of the Income Tax Regulations.
21
� 457 Plan and Trust Document •
(F) If the sole Beneficiary is the Employee's surviving spouse, the
spouse may elect to treat the IRA as his or her own IRA. This
election will be deemed to have been made if such surviving spouse
makes a contribution to the IRA or fails to take required
distributions as a Beneficiary.
(g) Nonforfeitable. The interest of an Employee in the balance in his or her
Deemed IRA account is nonforfeitable at all times.
(h) Re�orting The Deemed IRA Trustee of a Deemed Traditional IRA shall
furnish annual calendar-year reports concerning the status of the Deemed IRA account
and such information concerning required minimum distributions as is prescribed by the
Commissioner of Internal Revenue.
(i) Substitution of Deemed IRA Trustee. If the Deemed IRA Trustee is a non-
bank trustee or custodian, the non-bank trustee or custodian shall substitute another
trustee or custodian if the non-bank trustee or custodian receives notice from the
Commissioner of �nternal Revenue that such substitution is required because it has failed
to comply with the requirements of section 1.408-2(e) of the Income T� Regulations.
9.06 Deemed Roth IRA Requirements: Deemed IRAs established in the form of Roth
IRAs shall satisfy the following requirements:
(a) Exclusive Benefit. The Deemed Roth IRA shall be established for the
exclusive benefit of an Employee or his or her Beneficiaries.
(b) Maximum Annual Contributions.
(1) Maximum Permissible Amount. Except in the case of a qualified
rollover contribution or a recharacterization (as defined in (6) below), no
contribution will be accepted unless it is in cash and the total of such
contributions to all the Employee's Roth IRAs for a taxable year does not
exceed the applicable amount (as defined in (2) below), or the Employee's
compensation (as defined in (8) below), if less, for that taxable year. The
contribution described in the previous sentence that may not exceed the
lesser of the applicable amount or the Employee's compensation is referred
to as a"regular contribution." A"qualified rollover contribution" is a
rollover contribution that meets the requirements of section 408(d)(3) of
the Code, except the one-rollover-per-year rule of section 408(d)(3)(B) does
not apply if the rollover contribution is from an IRA other than a Roth IRA
(a "nonRoth IRA"). Contributions may be limited under (3) through (5)
6elow.
22
� 457 Plan and Trust Document •
(2) Apolicable Amount. The applicable amount is determined under
(A) or (B) below:
(A) If the Employee is under age 50, the applicable amount
is --
$3,000 for any taxable year beginning in 2002 through 2004,
$4,000 for any t�able year beginning in 2005 through 2007 and
$5,000 for any t�able year beginning in 2008 and years thereafter.
(B) If the Employee is 50 or older, the applicable amount is --
$3,500 for any taxable year beginning in 2002 through 2004,
$4,500 for any taxable year beginning in 2005, $5,000 for any
taxable year beginning in 2006 through 2007 and $6,000 for any
taxable year beginning in 2008 and years therea.fter.
After 2008, the limits in paragraph (2)(A) and (B) above will be adjusted by
the Secretary of the Treasury for cost-of-living increases under Section
219(b)(5)(C) of the Code. Such adjustments will be in multiples of $500.
(3) Re�ular Contribution Limit. If (A) and/or (B) below apply, the
maxirrium regular contribution that can be made to all the Employee's Roth
IRAs for a taxable year is the smaller amount determined under (A) or (B).
(A) The maximum regular contribution is phased out ratably
between certain levels of modified adjusted gross income ("modified
AGI," defined in (7) below) in accordance with the following table:
Filing Status Full Phase-out No
Contribution Range Contributiori
Single or Head
of Household
Joint Return
or Qualifying
Widower
Married-
Separate Return
$95,000 or
Modified AGI
Between $95,000
and $110,000
$110,000
or more
$150,000 or less
$0
Between $150,000
and $160,000
Between $0
and $10,000
$1 G0,000
or more
$10,000
or more
If the Employee's modified AGI for a taxable year is in the phase-
out range, the maximum regular contribution determined under
this table for that t�able year is rounded up to the next multiple
of $10 and is not reduced below $200.
23
� 457 Plan and Trust Document �
(B) If the Employee makes regular contributions to both Roth
and nonRoth IRAs for a taxable year, the maximum regular
contribution that can be made to all the Employee's Roth IRAs for
that ta.xable year is reduced by the regular contributions made to
the Employee's nonRoth IRAs for the taxable year.
(4) Oualified Rollover Contribution Limit. A rollover from a nonRoth
IRA cannot be made to this IRA if, for the year the amount is distributed
from the nonRoth IRA; (i) the Employee is married and files a separate
return, (ii) the Employee is not married and has modified AGI in excess of
$100,000 or (iii) the Employee is married and together the Employee and
the Employee's spouse have modified AGI in excess of $100,000. For
purposes of the preceding sentence, a husband and wife are not treated as
married for a taxable year if they have lived apart at all times during that
ta�cable year and file separate returns for the taxable year.
(5) SIMPLE IRA Limits. No contributions will be accepted under a
SIMPLE IRA plan established by any employer pursuant to Section 408(p)
of the Code. Also, no transfer or rollover of funds attributable to
contributions made by a particular employer under its SIMPLE IRA plan will
be accepted from a SIMPLE IRA, that is, an IRA used in conjunction with a
SIMPLE IRA plan, prior to the expiration of the 2-year period beginning on
the date the Employee first participated in that employer's SIMPLE IRA
plan.
(6) Recharacterization. A regular contribution to a nonRoth IRA may °
be recharacterized pursuant to the rules in section 1.408A-5 of the Income
Tax Regulations as a regular contribution to this IRA, subject to the limits
in (3) above.
(7) Modified AGI. For purposes of (3) and (4) above, an Employee's
modified AGI for a t�able year is defined in Section 408A(c)(3)(C)(i) of
the Code and does not include any amount included in adjusted gross
income as a result of a rollover from a nonRoth IRA (a "conversion").
(8) Compensation. For purposes of (1) above, compensation is defined
as wages, salaries, professional fees, or other amounts derived from or
received for personal services actually rendered (including, but not limited
to commissions paid salesmen, compensation for services on the basis of a
percentage of profits, commissions on insurance premiums, tips, and
bonuses) and includes earned income, as defined in Section 401(c)(2) of the
Code (reduced by the deduction the self-employed individual takes for
contributions made to a self-employed retirement plan). For purposes of
this definition, Section 401(c)(2) of the Code shall be applied as if the term
trade or business for purposes of section 1402 included service described in
subsection (c) (6). Compensation does not include amounts derived from or
received as earnings or profits from groperty (including but not limited to
interest and dividends) or amounts not includible in gross income.
Compensation also does not include any amount received as a pension or
annuiry or as deferred compensation. The term "compensation" shall
24
� 457 Plan and Trust Document •
include any amount includible in the Employee's gross income under
Section 71 of the Code with respect to a divorce or separation instrument
described in subparagraph (A) of Section 71(b)(2) of the Code. In the case
of a married Employee filing a joint return, the greater compensation of his
or her spouse is treated as his or her own compensation, but only to the
extent that such spouse's compensation is not being used for purposes of
the spouse making a contribution to a Roth IRA or a deductible
contribution to a nonRoth IRA.
(c) Collectibles. If the Deemed IRA Trust acquires collectibles within the
meaning of Section 408(m) of the Code after December 31, 1981, Deemed IRA Trust
assets will be treated as a distribution in an amount equal to the cost of such collectibles.
(d) Life Insurance Contracts. No part of the Deemed IRA Trust funds will
be invested in life insurance contracts.
(e) Distributfons Before Death. No amount is required to be distributed prior
to the death of the Employee for whose benefit the account was originally established.
(� Minimum Rec�uired Distributions.
(1) Notwithstanding any provision of this IRA to the contrary, the
distribution of the Employee's interest in the account shall be made in
accordance with the requirements of Section 408(a)(6) of the Code, as
modified by section 408A(c)(5), and the regulations thereunder, the
provisions of which are herein incorporated by reference. If distributions are
made from an annuity contract purchased from an insurance company,
distributions thereunder must satisfy the requirements of section 1.401(a)(9)-
6T of the Temporary Income Tax Regulations (taking into account Section
408A(c)(5) of the Code), rather than the distribution rules in paragraphs (2),
(3) and (4) below.
(2) Upon the death of the Employee, his or her entire interest will be
distributed at least as rapidly as follows:
(A) If the Beneficiary is someone other than the Employee's
surviving spouse, the entire interest will be distributed, starting by
the end of the calendar year following the calendar year of the
Employee's death, over the remaining life expectanry of the
Beneficiary, with such life expectancy determined using the age of
the beneficiary as of his or her birthday in the year following the
year of the Employee's death, or, if elected, in accordance with
paragraph (2)(C) below.
(B) If the Employee's sole Beneficiary is the Employee's
surviving spouse, the entire interest will be distributed, starting by
the end of the calendar year following the calendar year of the
Employee's death (or by the end of the calendar year in which the
Employee would have attained age 70-1/2, if later), over such
spouse's life, or, if elected, in accordance with paragraph (2)(C)
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� 457 Plan and Trus� Document �
below. If the surviving spouse dies before distributions are required
to begin, the remaining interest will be distributed, starting by the
end of the calendar year following the calendar year of the spouse's
death, over the spouse's Beneficiary's remaining life expectancy
determined using such Beneficiary's age as of his or her birthday in
the year following the death of the spouse, or, if elected, will be
distributed in accordance with paragraph (2)(C) below. If the
surviving spouse dies after distributions are required to begin, any
remaining interest will be distributed over the spouse's remaining
life expectancy determined using the spouse's age as of his or her
birthday in the year of the spouse's death.
(C) If there is no Beneficiary, or if applicable by operation of
paragraph (2)(A) or (2)(B) above, the entire interest will be
distributed by the end of the calendar year containing the fifth
anniversary of the Employee's death (or of the spouse's death in the
case of the surviving spouse's death before distributions are required
to begin under paragraph (2)(B) above).
(D) The amount to be distributed each year under paragraph
(2) (A) or (B) is the quotient obtained by dividing the value of the
IRA as of the end of the preceding year by the remaining life
expectancy specified in such paragraph. Life expectancy is
determined using the Single Life Table in Q&A-1 of section
1.401(a)(9)-9 of the Income Tax Regulations. If distributions are
being made to a surviving spouse as the sole Beneficiary, such
spouse's remaining life expectancy for a year is the number in the
Single Life Table corresponding to such spouse's age in the year. In
a11 other cases, remaining life expectancy for a year is the number in
the Single Life Table corresponding to the Beneficiary's age in the
year specified in paragraph (2)(A) or (B) and reduced by 1 for each
subsequent year.
(3) The "value" of the IRA includes the amount of any outstanding
rollover, transfer and recharacterization under Q&As-7 and -8 of section
1.408-8 of the Income Ta.�c Regulations.
(4) If the sole Beneficiary is the Employee's surviving spouse, the spouse
may elect to treat the IRA as his or her own IRA. This election will be
deemed to have been made if such surviving spouse makes a contribution to
the IRA or fails to take required distributions as a Beneficiary.
(g) Nonforfeitable. The interest of an Employee in the balance in his or her
account is nonforfeitable at all times.
(h) Re�ortin�. The Deemed IRA Trustee of a Deemed Roth IRA shall
furnish annual calendar-year reports concerning the status of the Deemed IRA account
and such information concerning required minimum distributions as is prescribed by the
Commissioner of Internal Revenue.
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� 457 Plan and Trust Document •
(i) Substitution of Deemed IRA Trustee. If the Deemed IRA Trustee is a
non-bank trustee or custodian, the non-bank trustee or custodian shall substitute another
trustee or custodian if the non-bank trustee or custodian receives notice &om the
Commissioner of Internal Revenue that such substitution is required because it has failed
to comply with the requirements of section 1.408-2(e) of the Income T� Regulations.
Article X. Non-Assignability
10.01 General: Except as provided in Article VIII and Section 10.02, no Participant or
Beneficiary shall have any right to commute, sell, assign, pledge, transfer or otherwise convey
or encumber the right to receive any payments hereunder, which payments and rights are
expressly declared to be non-assignable and non-transferable.
10.02 Domestic Relations Orders:
(a) Allowance of Transfers: To the extent required under a final judgment, decree,
or order (including approval of a properry settlement agreement) that (i) relates
to the provision of child support, alimony payments, or marital property rights
and (ii) is made pursuant to a state domestic relations law, and (iii) is permitted
under Sections 414(p)(11) and (12) of the Code, any portion of a Participant s
Account may be paid or set aside for payment to a spouse, former spouse, child,
or other dependent of the Participant (an "Alternate Payee"). Where necessary to
carry out the terms of such an order, a separate Account sha11 be established with
respect to the Alternate Payee who shall be entitled to make investment selections
with respect thereto in the same manner as the Participant. Any amount so set
aside for an Alternate Payee sha11 be paid in accordance with the form and timing
of payment specified in the order. Nothing in this Section shall be construed to
authorize any amount to be distributed under the Plan at a time or in a form that
is not permitted under Section 457(b) of the Code and is explicidy permitted
under the uniform procedures described in Section 10.2(d) below. Any payment
made to a person pursuant to this Section shall be reduced by any required
income tax withholding.
(b) Release from Liabiliry to Participant: The Employer's liability to pay benefits to
a Participant shall be reduced to the extent that amounts have been paid or set
aside for payment to an Alternate Payee to paragraph (a) of this Section and the
Participant and his or her Beneficiaries shall be deemed to have released the
Employer and the Plan Administrator from any claim with respect to such
amounts.
� (c) Participation in Legal Proceedings: The Employer and Administrator shall not
be obligated to defend against or set aside any judgement, decree, or order
described in paragraph (a) or any legal order relating to the garnishment of a
Participant's benefits, unless the full expense of such legal action is borne by the
Participant. In the event that the Participant's action (or inaction) nonetheless
causes the Employer or Administrator to incur such expense, the amount of the
expense may be charged against the Participant's Account and thereby reduce the
Employer's obligation to pay benefits to the Participant. In the course of any
27
� 457 Plan and Trust Document �
proceeding relating to divorce, separation, or child support, the Employer and
Administrator shall be authorized to disclose information relating to the
Participant's Account to the Alternate Payee (including the legal representatives
of the Alternate Payee), or to a court.
(d) Determination of Validity of Domestic Relations Orders: The Administrator
shall establish uniform procedures for determining the validity of any domestic
relations order. The Administrator's determinations under such procedures shall
be conclusive and binding on all parties and shall be afforded the maximum
amount of deference permitted by law.
Article XI. Relationship to other Plans and Employrnent Agreements
This Plan serves in addition to any other retirement, pension, or benefit plan or system
presently in existence or hereinafter established for the benefit of the Employer's employees,
and participation hereunder shall not affect benefits receivable under any such plan or
system. Nothing contained in this Plan shall be deemed to constitute an employment
contract or agreement between any Participant and the Employer or to give any Participant
the right to be retained in the employ of the Employer. Nor shall anything herein be
construed to modify the terms of any employment contract or agreement between a
Participant and the Employer.
Article XII. Amendment or Termination of Plan
The Emplo�rer rnay at any time amend this Plan provided that it transmits such amendment
in writing to the Administrator at least 30 days prior to the effective date of the amendment.
The consent of the Administrator sha11 not be required in order for such amendment to
become effective, but the Administrator shall be under no obligation to continue acting as
Administrator hereunder if it disapproves of such amendment. -
The Administrator may at any time propose an amendment to the Plan by an instrument in
writing transmitted to the Employer at least 30 days before the effective date of the
amendment. Such amendment shall become effective unless, within such 30-day period, the
Employer notifies the Administrator in writing that it disapproves such amendment, in
which case such amendment shall not become effective. In the event of such disapproval, the
Administrator shall be under no obligation to continue acting as Administrator hereunder.
The Employer may at any time terminate this Plan. In the event of termination, assets of the
Plan shall be distributed to Participants and Beneficiaries as soon as administratively
practicable following termination of the Plan. Alternatively, assets of the Plan may be
transferred to an eligible deferred compensation plan maintained by another eligible
governmental employer within the same State if (i) all assets held by the Plan (other than
Deemed IRAs) are transferred; (ii) the receiving plan provides for the receipt of transfers; (iii)
the Participants and Beneficiaries whose deferred amounts are being transferred will have an
amount immediately after the transfer at least equal to the deferred amount immediately
before the transfer; and (iv) the Participants or Beneficiaries whose deferred amounts are
being transferred is not eligible for additional annual deferrals in the Plan unless the
Participants or Beneficiaries are performing services for the employer maintaining the
receiving plan.
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� 457 Plan and Trust Document �
Except as may be required to maintain the status of the Plan as an eligible deferred
compensation plan under Section 457(b) of the Code or to comply with other applicable
laws, no amendment or termination of the Plan shall divest any Participant of any rights
with respect to compensation deferred before the date of the amendment or termination.
Article XIII. Applicable Law
This Plan and Trust shall be construed under the laws of the state where the Employer is
located and is established with the intent that it meet the requirements of an "eligible
deferred compensation plan" under Section 457(b) of the Code, as amended. The provisions
of this Plan and Trust shall be interpreted wherever possible in conformiry with the
requirements of that Section of the Code.
In addition, notwithstanding any provision of the Plan to the contrary, the Plan shall be
administered in compliance with the requirements of Section 414(u) of the Code.
Article XIV. Gender and Number
The masculine pronoun, whenever used herein, shall include the feminine pronoun, and the
singular shall include the plural, except where the context requires otherwise.
Q�
• 457 Plan and Trust Document �
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� 457 Plan and Trust Document •
DECLARATION
OF TRUST
This Declaration of Trust (the "Group Trust Agreement") is made as of the 19th day of
May, 2001, by VantageTrust Company, which declares itself to be the sole Trustee of the
trust hereby created.
WHEREAS, the ICMA Retirement Trust was created as a vehicle for the commingling of
the assets of governmental plans and governmental units described in Section 818(a)(6) of
the Internal Revenue Code of 1986, as amended, pursuant to a Declaration of Trust dated
October 4, 1982, as subsequently amended, a copy of which is attached hereto and
incorporated by reference as set out below (the "ICMA Declaration"); and
WHEREAS, the trust created hereunder (the "Group Trust") is intended to meet the
requirements of Revenue Ruling 81-100, 1981-1 C. B. 326, and is established as a common
trust fund within the meaning of Section 391:1 of Title 35 of the New Hampshire Revis.ed
Statutes Annotated, to accept and hold for investment purposes the assets of the Deferred
Compensation and Qualified Plans held by and through the ICMA Retirement Trust.
NOW, THEREFORE, the Group Trust is created by the execution of this Declaration of
Trust by the Trustee and is established with respect to each Deferred Compensation and
Qualified Plan by the transfer to the Trustee of such Plan's assets in the ICMA Retirement
Trust, by the Trustees thereof, in accord with the following provisions:
1. Incorporation of ICMA Declaration by Reference; ICMA By-Laws. Except as
otherwise provided in this Group Trust Agreement, and to the extent not
inconsistent herewith, all provisions of the ICMA Declaration are incorporated
herein by reference and made a part hereof, to be read by substituting the Group
Trust for the Retirement Trust and the Trustee for the Board of Trustees
referenced therein. In this respect, unless the context clearly indicates otherwise,
all capitalized terms used herein and defined in the ICMA Declaration have the
meanings assigned to them in the ICMA Declaration. In addition, the By-Laws
of the ICMA Retirement Trust, as the same may be amended from time-to-time,
are adopted as the By-Laws of the Group Trust to the extent not inconsistent
with the terms of this Group Trust Agreement.
Notwithstanding the foregoing, the terms of the ICMA Declaration and By-Laws
are further modified with respect to the Group Trust created hereunder, as
follows:
(a) any reporting, distribution, or other obligation of the Group Trust
vis-�-vis any Deferred Compensation Plan, Qualified Plan, Public
Employer, Public Employer Trustee, or Employer Trust shall be
deemed satisfied to the extent that such obligation is undertaken by
31
� 457 Plan and Trust Document �
(b) the ICMA Retirement Trust (in which case the obligation of the
Group Trust shall run to the ICMA Retirement Trust); and
(b) all provisions dealing with the number, qualification, election, term
and nomination of Trustees shall not apply, and all other provisions
relating to trustees (including, but not limited to, resignation and
removal) shall be interpreted in a manner consistent with the
appointment of a single corporate trustee.
2. Compliance with Revenue Procedure 81-100. The'requirements of Revenue
Procedure 81-100 are applicable to the Group Trust as follows:
(a) Pursuant to the terms of this Group Trust Agreement and Article X
of the By-Laws, investment in the Group Trust is limited to assets of
Deferred Compensation and Qualified Plans, investing through the
ICMA Retirement Trust.
(b) Pursuant to the By-Laws, the Group Trust is adopted as a part of
each Qualified Plan that invests herein through the ICMA
Retirement Trust.
(c) In accord with the By-Laws, that part of the Group Trust's corpus or
income which equitably belongs to any Deferred Compensation and
Qualified Plan may not be used for or diverted to any purposes other
than for the exclusive benefit of the Plan's employees or their
beneficiaries who are entitled to benefits under such Plan.
(d) In accord with the By-Laws, no Deferred Compensation Plan or
Qualified Plan may assign any or part of its equity or interest in the
Group Trust, and any purported assignment of such equity or
interest shall be void.
3. Governing Law. Except as otherwise required by federal, state or local law, this
Declaration of Trust (including the ICMA Declaration to the extent
incorporated herein) and the Group Trust created hereunder shall be construed
and determined in accordance with applicable laws of the State of New
Hampshire.
4. Judicial Proceedings. The Trustee may at any time initiate an action or
proceeding in the appropriate state or federal courts within or outside the state of
New Hampshire far the, settlement of its accounts or for the determination of
any question of construction which may arise or for instructions.
32
� 457 Plan and Trust Document �
IN WITNESS WHEREOF, the Trustee has executed this Declaration of Trust as of the day
and year first above written.
VANTAGETRUST COMPANY
.� �'��' ���
�
B
Name: Paul F. Gallagher
Tide: Assistant Secretary
33