HomeMy WebLinkAboutR-2118 - Amending the City of Marysville Hartford Deferred Compensation PlanRESOLUTION ::J-II 8"
A resolution amending the City of Marysville Hartford Deferred Compensation
.Plan.
City of MarysvilleWHEREAS,the __--="-'=.L--="---"~=_:..:::.::.;:::.:::..._
(hereinafter 'Employe!")heretofore established the II ar tf gp~Ill<f Q r red Com pensa ti 0 n
Plan
WHEREAS,the Employer desires to amend the Plan to conform with the final 457 Treasury regulations
('regulations')issued in July 2003;and
WHEREAS,this amendment is intended as good faith compliance with the requirements of the regulations,
and
NOW THEREFORE,BE IT RESOLVED,that,effective JC0'YAtlt'1 (ZC¥!i.the Employer hereby
amends the Plan by:J I
A.replacing section 2.3 with the following:
n 2.3 Agreement Effective Date
In general,an Employee must complete and file with the Employer a Participation Agreement prior to the
month deferrals begin.Notwithstanding this requirement,the Employer may establish a cutoff date for
receiving Participation Agreements as long as the cutoff is no later than the deadline provided in section
1.457-4{b)ofthe final 457 regulations and the cutoff date is applied in a nondiscriminatory manner.
Thereafter,during each month 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."
B.deleting the following portion of section 2.6 and renumbering section 2.6{d)and-2.6{e)as 2.6{c)and
2.6{d)respectively:
'(c)The pre-retrement cetch-up provision may not be used dUring the calendar year that the Participant
ceases to be an Employee.'.
C.replacing section 4.2,7.2 and 7.3 with the following:
'4.2 Unforeseeable Emergency Distribution
A Participant may apply for a lump sum withdrawal of funds from the Plan in the event of an unforeseeable
emergency.The Employer will evaluate the request for conformity with its interpretation of the applicable
regulations.The decision of the Employer concerning whether an unforeseen emergency exists shall be
final.
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An unforeseeable emergency is a severe financi~ard~hiP of the Participant orBeneficiary resulting from
an illness or accident of the Participant or Beneficiary,the Participant's or Beneficiary's spouse,or the
Participant's orBeneficiary's dependent (as defined in Code section 152(a));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 ofa natural disaster);or other similar
extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the
participant or the beneficiary.
Examples of unforeseeable emergencies include (1)imminentforeclosure oforeviction from the
Participant's or Beneficiary's primary residence,(2)the need to pay for medical expenses (including non-
refundable deductibles),as well as for the cost of prescription drug medication and (3)the need to pay for
the funeral expenses ofa spouse ora dependent (as defined in Code section 152(a)).Note that the
purchase ofa home and the payment of college tuition are typically not unforeseeable emerqeneies ..
The Participant must satisfy the Employer that the facts and circumstances of his or her situation fall within
the definition of unforeseeable emergency.A distribution on account of an unforeseeable emergency may
not be made to the extent the emergency is or may be relieved through reimbursement orcompensation
from insurance or otherwise by liquidation of the Participant's assets (to the extent liquidation would not
itself cause severe financial hardship)or by cessation of deferrals under the Plan.'
"7.2 Transfers In
All or a portion of an Employee's benefit may be transferred from another Eligible Deferred Compensation
Plan maintained by the Employer or another eligible governmental employer and credited to the
Participant's Account under this Plan as long as the transferor plan provides that such transfer can be
made and
(a)the transfer is from a plan of another employer and the Employee has severed employment with
such other employer;or.
(b)the transfer is made between eligible governmental plans sponsored by the Employer;or
(c)the entire plan's assets are transferred from another eligible govemmental plan in the same state.
As it deems necessary,the Employer may require such documentation from the transferor plan to effect the
transfer,to confirm that such plan is an Eligible Deferred Compensation Plan within the meaning of Code
Section 457(b)and to ensure 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 in trust under the Plan.
Any amounts transferred that have been deferred during the current calendar year will be considered
deferrals subject to current calendar year deferrallimitalion.
If a transfer,occurring on or after January 1,2002,is associated with a distributable event and the
Employee is eligible to receive an eligible rollover distribution as defined in Section 402(c)(4)of the Code,
such transfer·will be considered a Rollover Contribution subject to the provisions of Section 2.8.'
Government 457Plan Amendment 09/03
Final457 Treasury Regulations
2
"7.3 Transfers Out
All or a portion ofa Participant Account may be transferred to another Eligible Deferred Compensation Plan
maintained by another eligible-governmental employer as long as the transferee plan provides that
transfers can be made and
(a)
(b)
(c)
the transfer is to a plan of another employer and the Employee has severed employment;or
the transfer is made between eligible governmental plans sponsorfYthe Employer;or
the entire plan's assets are transferred to another eligible governmental plan in the same state.
Upon the completion of the transfer,the Plan and Employer are discharged of any liability to the Participant
to pay amounts so transferred.
As it deems necessary,the Employer may 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(b)and to ensure that transfers are provided for under such plan.Such transfers shall be made
only under such circumstances as are permitted under Code Section 457 and the applicable regulations.
If a transfer,occurring on or after January 1,2002,is associated with a distributable event and the
distribution is an eligible rollover distribution as defined Section 402(c)(4)of the Code,such transfer will be
considered a Direct Rollover SUbject to the provisions of Section 7.1.'
IN WITNESS WHEREOF,the Employer has executed this Plan Amendment this
12ft,dayof ,\a n''\6\,cl-o .,2001_.
';,'
City of MarysvilleBY:~~
Mayor
~EST/AUTHENTICATED:
M~
APPROVED AS TO FORM:
;:J!t-d--rol-i(Lv»ef
Marysville City Attorney
Government 457 Plan Amendment 09103
Final 457 Treasury Regulations
3
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