HomeMy WebLinkAbout24-221 Resolution No. 24-221
RESOLUTION
APPROVING THE ADOPTION AGREEMENT OF SECTION 457(b) DEFERRED
COMPENSATION PLAN AND BASIC PLAN DOCUMENT FOR PUBLIC EMPLOYEES
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS,
that the Adoption Agreement Section 457(b) Deferred Compensation Plan and Basic Plan
Document for Public Employees from Benefit Plans Plus, LLC, effective January 1, 2024, is
hereby adopted and approved by the City Council of the City of Elgin.
s/David J. Kaptain
David J. Kaptain, Mayor
Presented: September 25, 2024
Adopted: September 25, 2024
Vote: Yeas: 9 Nays: 0
Attest:
s/ Kimberly Dewis
Kimberly Dewis, City Clerk
ADOPTION AGREEMENT
SECTION 457(b)DEFERRED COMPENSATION PLAN
NOTE:This Plan(Adoption Agreement and Basic Plan Document)has not been approved by the Internal Revenue Service. It
must be reviewed by qualified counsel to ensure that it is appropriate for its intended use.
The undersigned adopting employer hereby adopts this Plan. The Plan is intended to qualify as an"eligible deferred
compensation plan"within the meaning of Code section 457(b). The Plan shall consist of this Adoption Agreement,its related
Basic Plan Document and any related Appendix and Addendum to the Adoption Agreement. Unless otherwise indicated,all
Section references are to Sections in the Basic Plan Document.
COMPANY INFORMATION
1. Name of adopting employer(Plan Sponsor):City of Elgin
2. Address: 150 Dexter Ct.
3. City:Elgin 4.State:IL 5.Zip:60120
6. Phone number:847-931-6049 7.Fax number:
S. Plan Sponsor EIN:36-6005862
9. Plan Sponsor fiscal year end: 12/31
10. State of organization of Plan Sponsor:Illinois
11. The term"Employer"includes the Plan Sponsor.
PLAN INFORMATION
A. GENERAL INFORMATION
1. Plan name: a.City of Elgin Deferred Compensation Plan for Public Employees
b.
2. Effective Date:
2a. Original effective date of Plan: 10/12/1979
2b. Is this a restatement of a previously-adopted plan?
® Yes 0 No
2c. If A.2b is"Yes",effective date of Plan restatement:01/01/2024.
NOTE: If A.2b is"No",the Effective Date shall be the date specified in A.2a,otherwise the date specified in A.2c;
provided,however,that when a provision of the Plan states another effective date,such stated specific effective date
shall apply as to that provision.
3. Plan Year means each 12-consecutive month period ending on 12/3 .(e.g.December 31).
NOTE:The Plan Year should correspond to the Participant's taxable year which in most cases is the calendar year.
Plan Type
4. Type of Plan:
i. ❑ Plan maintained by a tax-exempt entity within the meaning of Code section 457(ex1XB).
ii. ® Governmental flan maintained by a state or related entity within the meaning of Code section 457(ex1XA).
Plan Features
5. Employer/Employee contributions permitted(check all that apply):
a. 0 Matching Contributions.
b. 0 Nonelective Contributions.
c. ® Participant Deferral Contributions.
d. ® If A.5c is selected and the Plan is a Governmental Plan,Roth Deferrals are permitted.
e. If Roth Deferrals are permitted,enter the effective date of the Roth Deferrals:01/01/2011 (no earlier than Januar)
1,2011).
Compensation
6. Defmition of Compensation(check all that apply):
a. ® Base salary.
b. ® The additional pay specified in A.7.
7. If A.6.b is selected,enter the additional pay:Hourly Pay.ON ertime.Sick Pay.Vacation Pay.Back Pay including_
Settlement Payments
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8a. Are there any exclusions from the definition of Compensation:
O Yes ® No
8b. If A.Sa is"Yes",enter the exclusions from the definition of Compensation:
8c. Exclude pay earned before participation in Plan from defmition of Compensation:
® Yes ❑ No
Unless"No"is checked,Compensation shall include only that compensation which is actually paid to the Participant by
the Company during that part of the Plan Year the Participant is eligible to participate in the Plan. Otherwise,
Compensation shall include that compensation which is actually paid to the Participant by the Company during the Plan
Year.
B. ELIGIBILITY
Eligible Employee
NOTE: If the Plan is not a Governmental Plan,participation in the Plan must be limited to a select group of
management or highly compensated employees within the meaning of Title I of the ERISA.
1. Subject to the conditions and limitations of B.2 through B.4,the term Eligible Employee shall include Employees who
are also(check all that apply):
a. 0 Officers of the Company in the following positions:
b. ❑ Other management or highly compensated employees in the following classifications/positions:
c. 0 Employees listed in an appendix to the Adoption Agreement.
d. 0 All Employees except:
e. ® All Employees.
NOTE:Only a Governmental Plan may select B.1.d or B.1.e.
2. Indicate whether an independent contractor may participate in the Plan:
❑ Yes ® No
Eligible Employee-Other
3. In addition to the requirements in B.1,the following additional conditions must be met in order for an Employee to
become an Eligible Employee(check all that apply):
a. 0 Must be approved by the Chief Executive Officer of the Plan Sponsor.
b. 0 Must be approved by the Chief Executive Officer of the Employee's employing entity.
c. 0 Must be approved by the Board of the Plan Sponsor.
d. 0 Must be approved by the Board of the Employee's employing entity.
c. ❑ Other requirements listed in B.4.
4. I f B.3.e is selected,enter other requirements:
Requirements for Participation
An Eligible Employee shall become eligible to participate in the Plan upon meeting the following conditions in B.5
through B.6:
5. Minimum service requirement for an Eligible Employee to become eligible to be a Participant in the Plan:
i. ® None.
ii. 0 Completion of:
iii. 0 Other:
6. Frequency of entry dates:
i. 0 first day of each calendar month
ii. 0 first day of each plan quarter
iii. 0 first day of the first month and seventh month of the Plan Year
iv. ❑ first day of the Plan Year
v. ® Other:Immediately
Modifications
7a. Indicate whether there are any modifications to the requirements specified in B.1 -B.6
0 Yes No
7b. If B.7a is"Yes",specify the modifications:
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C. ELECTIONS/CONTRIBI"PIONS
la. If A.5c is selected(Participant Deferrals permitted),minimum Participant contribution:None
lb. If A.5c is selected(Participant Deferrals permitted),maximum Participant contribution:one hundred percent(100%1.
2. If A.5c is selected(Participant Deferrals permitted),a Participant may defer accumulated sick pa),accumulated
vacation pay,and back pay:
® Yes ❑ No
Matching Contributions
3. If A.5a is"Yes"(matching contributions are permitted),specify method to allocate matching contributions(Section
5.01(b)):
i. ❑ Pursuant to the formula specified in C.4.
ii. 0 An amount and allocation formula as determined by the Company.
4. If A.5a is"Yes"(matching contributions are permitted),and C.3.i is selected,indicate the formula to allocate such
contributions:
5. If A.5a is"Yes"(matching contributions are permitted),indicate any requirements that must be met in the applicable
Plan Year to receive an allocation of such contributions:
NOTE:If C.5 is blank or"None",there are no additional requirements for a Participant to receive an allocation of
matching contributions.
Nonelective Contributions
6. If A.5b is"Yes"(nonelective contributions are permitted),specify method to allocate nonelective contributions
(Section 5.01(b)):
i. 0 In the ratio that each Participant's Compensation bears to the Compensation of all eligible Participants.
ii. 0 Pursuant to the formula specified in C.7.
iii. 0 An amount and allocation formula as determined by the Company.
7. If A.5b is"Yes"(nonelective contributions are permitted)and C.6.ii is selected,indicate the formula to allocate such
contributions:
8. If A.5b is"Yes"(nonelective contributions are permitted),indicate any requirements that must be met in the applicable
Plan Year to receive an allocation of such contributions:
NOTE:If C.8 is blank or"None",there are no additional requirements for a Participant to receive an allocation of
nonelective contributions.
Transfers/Rollovers
9. Transfers/rollover contributions are permitted(Section 5.03 and 5.04):
® Yes ❑ No
NOTE:If the Plan is not a Governmental Plan and C.9 is"Yes",Section 5.03 shall apply.If the Plan is a
Governmental Plan and C.9 is"Yes",Section 5.03 and 5.04 shall apply.
D. EARNINGS/FRUST
Earnings
1. A Participant's Accounts shall be credited with earnings in the following manner:
i. 0 Fixed rate specified in D.2.
ii. 0 Predetermined investment(s)specified in an appendix to the Adoption Agreement
iii. m Predetermined investment(s)as specified by the Plan Administrator.
n. 0 Mid-term applicable federal rate(as defined pursuant to Code section 1274(d))for January I of the calendar
year.
NOTE:If the Plan is a Governmental Plan,D.1 must be a predetermined investment.
2 If D.l.i(fixed rate)is selected,specify the rate:
NOTE:If the rate specified in D.2 is a published rate,and the entry in D.2 does not specify when the rate is
redetermined,such rate shall be redetermined at the beginning of each Plan Year.
3. If D.I.ii or D.1.iii(predetermined investments)is selected,specify the extent to which a Participant may choose among
the predetermined investments:
i. 0 A Participant may not choose among predetermined investments.
ii ® As of each Valuation Date.
iii. 0 As of the first day of each Plan Year.
iv. 0 Pursuant to Plan Administrator procedures.
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4a. If D.1.ii or D.I.iii(predetermined investments)is selected and D.3.ii,D.3.iii or D.3.iv is selected(Participant direction
is allowed),the Plan provides conditions and/or limitations to the Participant's right to select investments:
❑ Yes ® No
4b. If D.l.ii or D.1.iii(predetermined investments)is selected and D.3.ii,D.3.iii or D.3.iv is selected(Participant direction
is allowed)and D.4a is"Yes",enter the conditions and/or limitations:
Grantor Trust
5. If the Plan is not a Governmental Plan,specify the extent to which the Company shall establish a grantor trust to pre-
fund its obligations for benefits hereunder(Section 7.02(a)):
i 0 No grantor trust shall be established.
ii. 0 The Company may,in its sole discretion,establish a grantor trust.
iii. 0 The Company shall establish a grantor trust.
NOTE:If the Plan is a Governmental Plan,the Plan shall establish a Trust pursuant to Section 7.02(b).
Valuation Date
6a. Enter Valuation Date:
i. 0 Last day of Plan Year
ii. ❑ I,ast day of each Plan quarter
iii. 0 Last day of each month
iv. m Each business day
v. 0 Other
6b. If D.6a.v is selected,enter the Valuation Date: (Must be at least annuall)).
E. VESTING FOR COMPANY CONTRIBUTIONS
Vesting Service Rules
1. Indicate the method of determining vesting service:
NOTE:Unless otherwise specified in E.1,a Participant shall earn one year of vesting service for each calendar year in
which he is credited with 1,000 hours of service with the Employer.
Vesting Exceptions
2. Provide for full vesting for a Participant who Terminates employment with the Employer after attainment of Normal
Retirement Age while an Employee(Section 5.06):
❑ Yes ❑ No
3. Provide for full vesting for a Participant who Terminates employment with the Employer due to death while an
Employee(Section 5.06):
❑ Yes ❑ No
4. Provide for full vesting for a Participant who Terminates employment with the Employer due to disability while an
Employee(Section 5.06):
❑ Yes 0 No
5a. Provide for full vesting for a Participant upon the circumstances described in E.5b(Section 5.06):
❑ Yes 0 No
Sb. If E.Sa is"Yes",describe the other circumstances:
6a. Company contribution vesting schedule:
❑ 100% 0 3-7 Year Graded 0 2-6 Year Graded ❑ 1-5 Year Graded 0 1-4 Year Graded 0 5 Year Cliff 0 3
Year Cliff 0 2 Year Cliff 0 Other 0 Pursuant to another plan.
NOTE:If the amount of compensation deferred under the Plan during the taxable year is subject to a vesting schedule,
the amount of compensation deferred that is taken into account as a Deferral in the taxable year in which the
contribution vests must be adjusted to reflect gain or loss allocable to the compensation deferred until the contribution
vests.
6b. If E.6a is"Other",enter other vesting schedule:
6c. If E.6a is"Pursuant to another plan",enter name of other plan:
Special Forfeiture Provisions
7a. Provide for special forfeiture provisions(Section 5.06(c)):
❑ Yes ® No
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7b. If E.7a is"Yes",describe any event that shall result in a complete forfeiture of that portion of the Participant's Account
specified in E.7c:
NOTE:If the amount of compensation deferred under the plan during the taxable year is subject to a substantial risk of
forfeiture,the amount of compensation deferred that is taken into account as an annual deferral in the taxable year in
which the substantial risk of forfeiture lapses must be adjusted to reflect gain or loss allocable to the compensation
deferred until the substantial risk of forfeiture lapses.
7c. If E.7a is"Yes",a Participant meeting the conditions of E.7b shall forfeit the following portion of his or her Account
even if such Account is otherwise fully vested:
F. DISTRIBUTIONS
NOTE:All distributions are subject to the minimum distribution requirements of Code section 401(ax9).
Normal Retirement
I. Normal Retirement Age means Attainment of age:55 with 8 Years of Service.
NOTE:Normal Retirement Age must be on or after the earlier of:(i)age 65,or(ii)the age at which Participants have
the right to retire under a basic defined benefit pension plan of the Employer(or money purchase plan if no defined
benefit plan).An earlier age may apply for eligible plans of qualified police or firefighters.The age selected may not be
later than age 70-1/2.
I inrc of I'a,ment for Reasons other than Death
2. Benefits may not commence later than the date specified below(Section 6.01):
i. 0 The earlier of the Required Beginning Date or the number of years specified in F.3 after the Participant's
Termination.
ii. ® The earlier of the Required Beginning Date or Normal Retirement Age.
iii. 0 Required Beginning Date.
NOTE:If F.2.ii is selected,payment may not be made earlier than that specified in Section 6.01.
3. If F.2.i is selected(number of years after Termination),enter the number years after the Participant's Termination
during which benefits must commence(Section 6.01):
NOTE:If zero is entered in F.3,distributions shall commence on the 61st day following the distribution event.
Form of Payment for Reasons other than Death
4a. Optional forms of payment payable for reasons other than death of the Participant(check all that apply):
i. ® A single lump sum payment.
ii. ❑ Annual installment payments for a period of years(payable on an annual basis)which extends for no longer
than the number of years specified in F.4b.
iii. ® Other optional form of benefit specified in F.4c.
4b. If F.4a.ii(annual installments)is selected,enter the maximum number of years over which payments may be made:
NOTE:May not extend beyond the life expectancy of the Participant and Beneficiary.
4c. If F.4a.iii(Other)is selected,describe other optional form of benefit:partial lump sum payments and installment
payments.
Payment on Participant Death
5. Distributions on account of the death of the Participant shall be made in accordance with one of the following payment
forms(Section 6.05):
i. ® Pay entire remaining Account by end of the first calendar year following the date of death.
ii. 0 Participant's Beneficiary shall be entitled to make any elections as to timing and form of distribution as were
available to the Participant at the time of death subject to the minimum distribution requirements of Code section
401(ax9).
Unforeseeable Emergency
6a. A Participant may receive a distribution upon the occurrence of an unforeseeable emergency(Section 6.04):
Yes 0 No
6b. If F.6a is"Yes",A.5c(Participant Deferral Contributions)is selected,the Plan is a Governmental Plan,and Roth
Deferrals are permitted,permit unforeseeable emergency distributions from Roth Deferral Accounts:
i. ® Yes
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ii. 0 Yes-But only if the withdrawal from the Roth Deferral Account qualifies as a"qualified distribution"within
the meaning of Code section 402A(d)(2).
iii. 0 No
Small Distributions
7. A Participant may make a one-time election to receive a distribution of a small balance($5,000 or less)as permitted by
Code section 457(eX9XA)(Section 6.03):
® Yes 0 No
\lcdium of Payment
8. Medium of distribution from the Plan:
i. ® Cash only
ii. 0 Cash or in-kind
iii. ❑ In-kind only
Transfers
9a. Specify whether transfers may be made to another plan(Section 6.08):
® Yes 0 No
NOTE:A transfer shall only be permitted to the extent that it is permissible in accordance with Code section
457(ex10)and Treas.Reg.section 1.457-10(b).
NOTE:Governmental Plans are also subject to the direct rollover rules in Section 6.09.
9b. If the Plan is a Governmental Plan,specify whether service credit transfers may be made to another defined benefit
governmental plan(Section 6.10):
® Yes 0 No
Death or Disability during Qualified Military Service
10a. For benefit accrual purposes,a Participant that dies or becomes disabled while performing qualified military service
will be treated as if he had been employed by the Company on the day preceding death or disability and terminated
employment on the day of death or disability pursuant to Code section 414(u)(9),Notice 2010-5 and any superseding
guidance(Section 6.12):
® Yes 0 No
10b. If F.10a is"Yes",enter the effective date:01/01/2007(must be on or after January 1,2007).
Loans/Inservice
11. If the Plan is a Governmental Plan,specify whether Participant loans may be made(Section 6.13):
® Yes 0 No
12. If the Plan is a Governmental Plan and C.9 permits rollover contributions,specify whether a Participant may receive an
inservice withdrawal of his rollover Account(Section 6.07).
® Yes ❑ No
13. Specify whether a Participant may receive an inservice withdrawal of his Account upon attainment of age 70-1/2:
® Yes 0 No
2009 Required Minimum Distributions
14a. If the Plan is a Governmental Plan,indicate the extent to which participants and beneficiaries have an election to
receive distributions that include 2009 RMDs.
i. ® Default to continue 2009 RMDs.
ii. 0 Default to discontinue 2009 RMDs.
iii. 0 Other:
NOTE:If"Other"is selected,the below provisions will not apply except to the extent specified.
14b. Direct Rollovers of 2009 RMDs.For purposes of the direct rollover provisions of the Plan,the following will also be
treated as eligible rollover distributions in 2009:
i. ® None.2009 RMDs will not be treated as eligible rollover distributions in 2009.
ii. ❑ 2009 RMDs only.
iii. 0 Extended 2009 RMDs only.
i'. 0 2009 RMDs and Extended 2009 RMDs.
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G. PLAN OPERATIONS
Plan Administration
la. Designation of Plan Administrator(Section 7.01):
i. ® Plan Sponsor
ii. ❑ Committee appointed by Plan Sponsor
iii. ❑ Other
lb. If G.la.iii is selected,Name of Plan Administrator:
2a. Type of indemnification for the Plan Administrator(and if applicable,the Trustee):
L ® Standard according to Section 7.03.
ii. ❑ Custom.
2b. If G.2a.ii(Custom)is selected,indemnification for the Plan Administrator(and if applicable,the Trustee)is provided
pursuant to an Addendum to the Adoption Agreement.
H. MISCELLANEOUS
Failure to properly fill out the Adoption Agreement may result in the failure of the Plan to achieve its intended tax consequences
and may further result in significant tax penalties.
The Plan shall consist of this Adoption Agreement, its related Basic Plan Document#457B and any related Appendix and
Addendum to the Adoption Agreement.
The undersigned agree to be bound by the terms of this Adoption Agreement and Basic Plan Document and acknowledge
receipt of same. The Plan Sponsor caused this Plan to be executed this day of ,2024.
CITY OF ELGIN:
Signature:
Print Name:
Title/Position:
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ADDENDUM TO THE ADOPTION AGREEMENT
The following custom language is provided:
Deferral modifications are permitted per pay period.
Normal Retirement Age for qualified police or firefighters is age 50 with 20 Years of Service.
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Benefit Plans Plus,HA
BASIC PLAN DOCUMENT#457B
Copyright 2002-2023 All Rights Reserved.
BENEFIT PLANS PLUS,LLC
TABLE OF CONTENTS
ARTICLE 1.INTRODUCTION 1
Section 1.01 Plan 1
Section 1.02 Application of Plan 1
ARTICLE 2.DEFINITIONS 2
ARTICLE 3.PARTICIPATION 5
Section 3.01 Participation 5
Section 3.02 Transfers/Terminations 5
Section 3.03 Procedures for Admission . 5
ARTICLE 4.ELECTIONS 6
Section 4.01 Deferral Elections 6
Section 4.02 Election Procedures 6
ARTICLE 5.ACCOUNTS/BENEFITS . 7
Section 5.01 Establishment of Accounts 7
Section 5.02 Limitations 7
Section 5.03 Transfers 9
Section 5.04 Governmental Plan Rollovers 9
Section 5.05 Eamings/Expenses 10
Section 5.06 Vesting 10
Section 5.07 Forfeitures 11
ARTICLE 6.DISTRIBUTIONS 12
Section 6.01 Time of Distribution 12
Section 6.02 Form of Distribution 12
Section 6.03 Small Distributions 12
Section 6.04 Unforeseeable Emergencies 13
Section 6.05 Death 13
Section 6.06 Withholding 14
Section 6.07 Distribution From Rollover Account 14
Section 6.08 Transfers 14
Section 6.09 Direct Rollovers-Governmental Plans 14
Section 610 Service Credit Transfers 15
Section 6.11 Qualified Health Insurance Premiums for Retired Public Safety Officers 15
Section 6.12 Death or Disability During Qualified Military Service. . .15
Section 6.13 Loans 15
Section 6.14 Refunds/Indemnification 17
Section 6.15 Claims Procedure 17
Section 6.16 Minor or Legally Incompetent Payee 18
Section 6.17 Missing Payee 18
Section 6.18 2009 Required Minimum Distributions 18
ARTICLE 7.PLAN ADMINISTRATION 19
Section 7.01 Plan Administrator 19
Section 7.02 Funded Status 20
Section 7.03 Indemnification 21
Section 7.04 Communications 21
ARTICLE 8 AMENDMENT AND TERMINATION 22
Section 8.01 Amendment/Termination 22
ARTICLE 9.MISCELLANEOUS 23
Section 9.01 Nonalienation of Benefits 23
Section 9.02 QDRO 23
Section 9.03 No Right to Employment 23
Section 9.04 Governing Law 23
Section 9.05 Tax Effect 23
Section 9.06 Assignment 23
Section 9.07 Severability of Provisions 23
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Section 9.08 Headings and Captions 24
Section 9.09 Gender and Number 24
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ARTICLE I INTRODUCTION
ARTICLE 1 INTRODUCTION
Section 1.01 PLAN
This document("Basic Plan Document")and its related Adoption Agreement are intended to provide deferred
compensation for Eligible Employees of the Company. This Plan is intended to constitute an"eligible deferred compensation
plan"within the meaning of Code section 457(b)and,if the Plan is not a Governmental Plan,a top hat plan within the meaning of
ERISA sections 201(2),301(aX3)and 401(aX1).The provisions of this Plan are intended to comply with requirements of Code
section 457 in form and operation and shall be interpreted in a manner consistent with such Code section and regulations or
guidance promulgated pursuant thereto.
Section 1.02 APPLICATION OF PLAN
Except as otherwise specifically provided herein,the provisions of this Plan shall apply to those individuals who arc
Eligible Employees of the Company on or after the Effective Date. Except as otherwise specifically provided for herein,the
rights and benefits,if any,of former Eligible Employees of the Company whose employment terminated prior to the Effective
Date,shall be determined under the provisions of the Plan,as in effect from time to time prior to that date.
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ARTICLE 2 DEFINITIONS
ARTICLE 2 DEFINITIONS
"Account"means the book entry account maintained with respect to each Participant pursuant to Article 5.
"Adoption Agreement"means the document executed in conjunction with this Basic Plan Document that contains the
optional features selected by the Plan Sponsor.
"Beneficiary"means the person or persons designated by the Participant to receive distributions from the Participant's
Account after the Participant's death. Upon enrollment,the Participant shall designate a Beneficiary to receive distributions
from the Participant's Account in the event of the Participant's death. A Participant may change his or her designated
Beneficiary at any time. A Participant may designate any person or persons as Beneficiaries.Unless otherwise provided in the
Beneficiary designation form,each designated Beneficiary shall be entitled to equal shares of the benefits payable after the
Participant's death. If the Participant fails to designate a Beneficiary,or if no designated Beneficiary survives the Participant for
a period of fifteen(15)days,then the Participant's surviving spouse shall be the Beneficiary.If the Participant has no surviving
spouse,or if the surviving spouse does not survive the Participant for a period of fifteen(15)days,then the estate of the
Participant shall be the Beneficiary.
"Code"means the Internal Revenue Code of 1986,as amended from time to time.
"Company"means the Plan Sponsor and any other entity that has adopted the Plan with the approval of the Plan
Sponsor.
"Compensation"shall have the meaning set forth in the Adoption Agreement.Compensation for an independent
contractor shall include payment by the Company to the independent contractor.Effective for Plan Years beginning after
December 31,2008,Compensation shall include differential wage payments(as defined in Code section 3401(h)(2))pursuant to
Code section 414(uxl2),Notice 2010-5 and any superseding guidance.
"Deferral"means,the amount of Compensation deferred,whether by salary reduction or by employer contribution.The
amount of Compensation deferred under the Plan is taken into account as an annual deferral in the taxable year of the Participant
in which deferred,or,if later,the year in which the amount of Compensation deferred is no longer subject to a substantial risk of
forfeiture.The term"Deferral"shall not include transfers and rollovers from another plan described in Article 5.To the extent
provided in the Adoption Agreement,a Participant may also defer accumulated sick pay,accumulated vacation pay,and back
pay.
If the amount of Compensation deferred under the Plan during a taxable year is not subject to a substantial risk of
forfeiture,the amount taken into account as an annual deferral is not adjusted to reflect gain or loss allocable to the compensation
deferred.If,however,the amount of Compensation deferred under the Plan during the taxable year is subject to a substantial risk
of forfeiture,the amount of Compensation deferred that is taken into account as an annual deferral in the taxable year in which
the substantial risk of forfeiture lapses must be adjusted to reflect gain or loss allocable to the Compensation deferred until the
substantial risk of forfeiture lapses.
"Deferral Agreement"means the agreement between an Employer and a Participant,including any amendments
thereto,which specifies the amount of Deferrals to be made by the Employee.Each Deferral Agreement or amendment thereto
shall be made or confirmed in writing under procedures established by the Plan Administrator.
"Effective Date"shall have the meaning set forth in the Adoption Agreement.
"Eligible Deferred Compensation Plan"means a plan maintained by any employer that constitutes an"eligible deferred
compensation plan"within the meaning of Code section 457 and that has at all relevant times included the deferral limitations set
forth in section 457(b).
"Eligible Employee"means any Employee employed by or performing services for the Company,subject to the
modifications and exclusions described in the Adoption Agreement.If the Plan is not a Governmental Plan,it is intended that
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ARTICLE 2 DEFINITIONS
participation in the Plan be limited to a select group of management or highly compensated employees within the meaning of
Title 1 of the Employee Retirement Income Security Act.If an individual is subsequently reclassified as,or determined to be,an
Employee by a court,the Internal Revenue Service or any other governmental agency or authority,or if the Company is required
to reclassify such individual an Employee as a result of such reclassification determination(including any reclassification by the
Company in settlement of any claim or action relating to such individual's employment status),such individual shall not become
an Eligible Employee by reason of such reclassification or determination.
An individual who becomes employed by the Employer in a transaction between the Employer and another entity that
is a stock or asset acquisition,merger,or other similar transaction involving a change in the employer of the employees of the
trade or business shall not become eligible to participate in the Plan until the Plan Sponsor specifically authorizes such
participation.
"Employee"means(i)any individual who is employed by the Employer and(ii)any independent contractor who
performs services for the Employer within the meaning of Treas.Reg. 1.457-(2Xe).Effective for Plan Years beginning after
December 31,2008,a Participant receiving differential wage payments(as defined in Code section 340100(2))shall be treated as
an Employee of the Employer making the payment pursuant to Code section 414(u)(12),Notice 2010-5 and any superseding
guidance.
"Employer"means the Company or any other employer required to be aggregated with the Company under Code
sections 414(b),(c),(m)or(o);provided,however,that"Employer"shall not include any entity or unincorporated trade or
business prior to the date on which such entity,trade or business satisfies the affiliation or control tests described above.An
Employer is limited to an entity that is a State or a Tax-Exempt Entity.The term"Employer"does not include a church as defined
in Code section 3121(wx3XA),a qualified church-controlled organization as defined in Code section 3121(wX3XB),or the
Federal government or any agency or instrumentality thereof.
"ERISA"means the Employee Retirement Income Security Act of 1974,all amendments thereto and all federal
regulations promulgated pursuant thereto.
"Governmental Plan"means a Plan maintained by a State.The Plan shall be considered to be a Governmental Plan only
to the extent provided in the Adoption Agreement.
"Includible Compensation"means,with respect to the taxable year,the Participant's compensation,as defined in Code
section 415(c)(3). Includible Compensation shall be determined without regard to any community property laws.
"Normal Retirement Age"shall have the meaning set forth in the Adoption Agreement For purposes of the special
Code section 457 catch-up in Section 5.02(c),an entity sponsoring more than one eligible plan may not permit a Participant to
have more than one Normal Retirement Age under the eligible plans it sponsors.
"Participant"means an Eligible Employee who participates in the Plan in accordance with Articles 3 and 4.
"Plan Administrator"means the person(s)designated pursuant to the Adoption Agreement and Section 7.01.
"Plan Sponsor"means the entity described in the Adoption Agreement.
"Plan Year"means the 12-consecutive month period described in the Adoption Agreement.
"Pre-tax Deferral"means Deferrals that are not includible in the Participant's gross income at the time deferred.
"Pre-tax Deferral Account"means so much of a Participant's Account as consists of a Participant's Pre-Tax Deferrals
(and corresponding earnings)made to the Plan.
"Required Beginning Date"means April 1st of the calendar year following the calendar year of a Participant's
attainment of age 70-1/2 or Termination,whichever is later.
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ARTICLE 2 DEFINITIONS
"Roth Deferral"means an Deferral that is:(a)designated irrevocably by the Participant at the time of the cash or
deferred election as a Roth Deferral that is being made in lieu of all or a portion of the Pre-tax Deferrals the Participant is
otherwise eligible to make under the Plan;and(b)treated by the Company as includible in the Participant's income at the time the
Participant would have received that amount in cash if the Participant had not made a cash or deferred election.Except as
otherwise provided,Roth Deferrals shall be subject to the same conditions and limitations as apply to Deferrals.
"Roth Deferral Account"means so much of a Participant's Account as consists of a Participant's Roth Deferrals(and
corresponding earnings)made to the Plan.The Plan will maintain a record of the amount of Roth Deferrals in each Participant's
Roth Deferral Account.
"State"means a state(treating the District of Columbia as a state as provided under Code section 7701(a)(10)),a
political subdivision of a state,and any agency or instrumentality of a state.
"Tax-Exempt Entity"means includes any organization exempt from tax under subtitle A of the Internal Revenue Code,
except that a governmental unit(including an international governmental organization)is not a tax-exempt entity.
"Termination"and"Termination of Employment"means:
(a) Employee.The cessation of an Employee's active employment with an Employer.
(b) Independent Contractor An independent contractor is considered to have a Termination upon the expiration
of the contract(or in the case of more than one contract,all contracts)under which services are performed if the expiration
constitutes a good-faith and complete termination of the contractual relationship.
"Trust Agreement"means in the case of a Governmental Plan,the written agreement(or declaration)made by and
between the Employer and the Trustee under which the Trust Fund is maintained.
"Trust Fund"means in the case of a Governmental Plan,the trust fund or custodial account(to the extent permitted
under Code section 457(g)and Treas.Reg.section 1.457-8)created under and subject to the Trust Agreement.
"Trustee"means in the case of a Governmental Plan,the trustee or custodian duly appointed and currently serving
under the Trust Agreement.In the case of a Plan maintained by a Tax-Exempt Entity,the trustee duly appointed and currently
serving under the grantor trust.
"Valuation Date"shall have the meaning set forth in the Adoption Agreement.
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ARTICLE 3 PARTICIPATION
ARTICLE 3 PARTICIPATION
Section 3.01 PARTICIPATION
Each Eligible Employee as of the Effective Date who was eligible to participate in the Plan immediately prior to the
Effective Date shall be a Participant eligible to participate in the Plan pursuant to Article 4 on the Effective Date. Each other
Eligible Employee who was not a Participant in the Plan prior to the Effective Date shall become a Participant eligible to
participate pursuant to Article 4 on the date specified in the Adoption Agreement;provided that he is an Eligible Employee on
such date.
Section 3.02 TRANSFERS/TERMINATIONS
If a change in job classification,Termination or a transfer results in an individual no longer qualifying as an Eligible
Employee,such Employee shall cease to be a Participant for purposes of Articles 4 and 5(or shall not become eligible to become
a Participant)as of the first day of the month immediately succeeding such change of job classification or transfer;or in the case
of a Termination,the effective date of the Termination. Should such Employee again qualify as an Eligible Employee or if an
Employee who was not previously an Eligible Employee becomes an Eligible Employee,he shall become a Participant on the
first day of the month following the later of the effective date of such subsequent change of status or the date the Employee meets
the eligibility requirements of this Article 3.
Section 3.03 PROCEDURES FOR ADMISSION
The Plan Administrator shall prescribe such forms and may require such data from Participants as are reasonably
required to enroll a Participant in the Plan or to effectuate any Participant elections.The Plan Administrator may impose other
limitations and/or conditions with respect to participation in the Plan on Eligible Employees who commence or recommence
participation in the Plan pursuant to Section 3.02.
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ARTICLE 4 ELECTIONS
ARTICLE 4 ELECTIONS
Section 4.01 DEFERRAL ELECTIONS
This Section shall apply only to the extent that the Adoption Agreement permits Participant Deferrals.
(a) Compensation.A Deferral Agreement shall become effective no earlier than the later of the Effective Date or
first day of the calendar month following the month in which the agreement is made.A new Employee may defer Compensation
payable in the calendar month during which the Participant first becomes an Employee if an agreement providing for the Deferral
is entered into on or before the first day on which the Participant performs services for the Employer.
(b) Roth Deferrals.If the Plan is a Governmental Plan and to the extent provided in the Adoption Agreement,
Participants shall be eligible to irrevocably designate some or all of their Deferrals as either Pre-tax Deferrals or Roth Deferrals.
All elections shall be subject to the same election procedures,limits on modifications and other terms and conditions on elections
as specified in the Plan.If Roth Deferrals are not permitted,all Deferrals shall be designated as Pre-tax Deferrals.
(c) Sick,Vacation and Back Pay.To the extent provided in the Adoption Agreement,a Participant may also
defer accumulated sick pay,accumulated vacation pay,and back pay.Such elections may be deferred for any calendar month
only if an agreement providing for the Deferral is entered into before the beginning of the month in which the amounts would
otherwise be paid or made available and the Participant an Employee on the date the amounts would otherwise be paid or made
available.For purposes of section 457,Compensation that would otherwise be paid for a payroll period that begins before
severance from employment is treated as an amount that would otherwise be paid or made available before an Employee has a
severance from employment.
Section 4.02 ELECTION PROCEDURES
Each Participant may execute elections pursuant to this Article 4 in the form and manner prescribed by the Plan
Administrator. The Plan Administrator shall provide each Participant with the forms necessary to make such elections.
Notwithstanding the foregoing,a Participant shall be eligible to make elections only to the extent such elections are permitted in
the Adoption Agreement and relate to contributions and/or benefits for which the Participant has met the eligibility requirements
of Article 3.The Adoption Agreement may provide additional conditions and/or limitations on Participant elections.
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ARTICLES ACCOUNTS/BENEFITS
ARTICLE 5 ACCOUNTS/BENEFITS
Section 5.01 ESTABLISHMENT OF ACCOUNTS
(a) Accounts.The Plan Administrator shall establish and maintain a book entry account on behalf of each
Participant to the extent necessary to account for benefits provided hereunder. Each such book entry account shall reflect the
aggregate of Participant and/or Company contributions and investment experience attributable to each such book entry account
based upon the investment experience/plan expenses described in Section 5.05 below. Each book entry account shall also
reflect any reductions due to expense charges applied to,and distributions made from,each such account.If the Plan is not a
Governmental Plan,such account(s)shall be simply an unsecured claim against the general assets of the Company and a
Participant shall have no interest in such account,which is established merely as an accounting convenience.For purposes of this
Subsection,"Participant"shall mean an Eligible Employee who has met the eligibility requirements of Article 3.
(b) Employer Contributions. To the extent provided in the Adoption Agreement,the Company may,in its sole
discretion,make additional credits to the Account of any Participant either as matching or other non-elective contributions.
Except as otherwise provided,any such additional credits shall be treated as Deferrals for all purposes of the Plan.Deferrals may
be made for former Employees with respect to compensation described in§ 1.415(c)-2(eX3Xii)(relating to certain compensation
paid within 2-1/2 months following severance from employment),compensation described in§ 1.415(c)-2(gx4)(relating to
compensation paid to Participants who are permanently and totally disabled),and compensation relating to qualified military
service under section 4I4(u).
(c) Contribution to Trust Fund.If the Plan is a Governmental Plan,Deferrals by the Participant under the Plan
shall be transferred to the Trust Fund within a period that is not longer than is reasonable for the proper administration of the
Participant's Account.For this purpose,Deferrals shall be treated as contributed within a period that is not longer than is
reasonable for the proper administration if the contribution is made to the Trust Fund within 15 business days following the end
of the month in which the amount would otherwise have been paid to the Participant.Effective as provided in Internal Revenue
Service Revenue Ruling 2011-1 (as modified by Revenue Service Notice 2012-6 and any superseding guidance),to the extent
that the Plan's trust is a part of any group trust(within the meaning of Internal Revenue Service Revenue Rulings 81-100 and
2011-1),such group trust may invest in the accounts and plans described in Internal Revenue Service Revenue Ruling 2011-1;
provided,that requirements of such ruling and superseding guidance are met.
(d) USERRA.An Employee whose employment is interrupted by qualified military service under Code section
414(u)or who is on a leave of absence for qualified military service under Code section 414(u)may elect to make additional
Deferrals and receive allocations of Company contributions,if any,upon resumption of employment with the Employer equal to
the maximum Deferrals that the Employee could have elected during that period(or received if Company contributions)if the
Employee's employment with the Employer had continued(at the same level of Compensation)without the interruption or leave,
reduced by the Deferrals,if any,actually made for the Employee during the period of the interruption or leave.This right applies
for five years following the resumption of employment(or,if sooner,for a period equal to three times the period of the
interruption or leave).
Section 5.02 LIMITATIONS
(a) General Limitation. Except as provided in Subsection(b)and(c),a Participant's Deferrals for a taxable year
shall not exceed the lesser of:
(I) S15,000(or such greater dollar limit as may be in effect under Code section 457(e));or
(2) One hundred percent(100%)of the Participant's Includible Compensation for the calendar year.
(b) Age 50 Catch-Up.If the Plan is a Governmental Plan,a Participant who will attain age 50 or more by the end
of the calendar year is permitted to elect an additional amount of Deferrals pursuant to Code section 414(v),up to the maximum
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ARTICLES ACCOUNTS/BENEFITS
age 50 catch-up amount for the year.The maximum dollar amount of the age 50 catch-up Deferrals for a year is$5,000,adjusted
for cost-of-living after 2006 to the extent provided under the Code.The Age 50 Catch-up described in this Subsection does not
apply for any taxable year for which a higher limitation applies under the special Code section 457 catch-up under Section
5.02(c).
(c) Catch-up Limitation. If the applicable year is one of a Participant's last 3 calendar years ending before the
year in which the Participant attains Normal Retirement Age and the amount determined under this Subsection(c)exceeds the
amount computed under Subsection(a)and if a Governmental Plan Subsection(b),then the annual Deferral limit under this
Section 5.02 shall be the lesser of:
(1) An amount equal to 2 times the Subsection(aXI)applicable dollar amount for such year;or
(2) The sum of:
(A) An amount equal to(x)the aggregate Subsection(a)limit for the current year plus each
prior calendar year beginning after December 31,2001 during which the Participant was an Eligible Employee under the Plan,
minus(y)the aggregate amount of Compensation that the Participant deferred under the Plan during such years,plus
(B) An amount equal to(x)the aggregate limit referred to in Code section 457(b)(2)for each
prior calendar year beginning after December 31, 1978 and before January 1,2002 during which the Participant was an Eligible
Employee,minus(y)the aggregate contributions to Pre-2002 Coordination Plans for such years.
The amounts under this Subsection 5.02(c)shall be determmed in accordance with Treas.Reg.section 1.457-4(c)(3).
(d) Participant Covered By More Than One Eligible Plan.If the Participant is or has been a participant in one or
more other eligible plans within the meaning of section 457(b)of the Code,then this Plan and all such other plans shall be
considered as one plan for purposes of applying the foregoing limitations of this Section 5.02.For this purpose,the Plan
Administrator shall take into account any other such eligible plan maintained by the Employer and shall also take into account
any other such eligible plan for which the Administrator receives from the Participant sufficient information concerning his or her
participation in such other plan.
(e) Pre-Participation Years.In applying Subsection(c),a year shall be taken into account only if(i)the
Participant was eligible to participate in the Plan during all or a portion of the year and(ii)Compensation deferred,if any,under
the Plan during the year was subject to the basic annual limitation described in Subsection(a)or any other plan ceiling required
by section 457(b)of the Code.
(f) Pre-2002 Coordination Plans.For purposes of Subsection(c)(2)(B)(y),"contributions to Pre-2002
Coordination Plans"means any employer contribution,salary reduction or elective contribution under any other eligible Code
section 457(b)plan,or a salary reduction or elective contribution under any Code section 401(k)qualified cash or deferred
arrangement,Code section 402(hx1XB)simplified employee pension(SARSEP),Code section 403(b)annuity contract,and
Code section 408(p)simple retirement account,or under any plan for which a deduction is allowed because of a contribution to
an organization described in section 501(cX18)of the Code,including plans,arrangements or accounts maintained by the
Employer or any employer for whom the Participant performed services.However,the contributions for any calendar year are
only taken into account for purposes of Subsection(cX2)(B)(y)to the extent that the total of such contributions does not exceed
the aggregate limit referred to in section 457(b)(2)of the Code for that year.
(g) Disregard Excess Deferral.For purposes of Subsections(a),(b)and(c),an individual is treated as not having
deferred compensation under a plan for a prior taxable year to the extent excess Deferrals under the Plan are distributed,as
described in Subsection(h).To the extent that the combined deferrals for pre-2002 years exceeded the maximum deferral
limitations,the amount is treated as an excess Deferral for those prior years.
(h) Correction of Excess Deferrals.If the annual Deferral on behalf of a Participant for any calendar year exceeds
the limitations described above,or the annual Deferral on behalf of a Participant for any calendar year exceeds the limitations
described above when combined with other amounts deferred by the Participant under another eligible deferred compensation
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ARTICLE S ACCOUNTS/BENEFITS
plan under Code section 457(b)for which the Participant provides information that is accepted by the Plan Administrator,then
the annual Deferral,to the extent in excess of the applicable limitation(adjusted for any income or loss in value,if any,allocable
thereto),shall be distributed to the Participant as soon as administratively feasible.If the annual Deferral made on behalf of a
Participant for any calendar year exceeds the limitations described above and the Plan is not a Governmental Plan the excess
(adjusted for any income or loss in value,if any,allocable thereto),shall be distributed to the Participant no later than April 15 of
the subsequent taxable year.If the vesting of a Participant's Account pursuant to Section 5.06 may cause the limitations of this
Section to be exceeded,the Plan Administrator may elect to defer such vesting and/or refund or reduce Deferrals.
Section 5.03 TRANSFERS
This Section shall apply to the extent that the Adoption Agreement permits transfers from Eligible Deferred
Compensation Plans.At the direction of the Company,the Plan Administrator may accept a transfer of assets to the Plan as
provided in this Section.Such a transfer is permitted only if the other plan provides for such direct transfer.The Plan
Administrator may require in its sole discretion that the transfer be in cash or other property acceptable to the Plan Administrator
and may require such documentation from the other plan as it deems necessary to effectuate the transfer.A transfer shall only be
permitted to the extent that it is permissible in accordance with Code section 457(e)(10)and Treas.Reg.section 1.457-10(b)
Section 5.04 GOVERNMENTAL PLAN ROLLOVERS
This Section shall apply only to the extent that the Plan is a Governmental Plan and the Adoption Agreement permits
rollovers.
(a) In General.A Participant(or in the discretion of the Plan Administrator an Eligible Employee)who is an
Employee and who is entitled to receive an eligible rollover distribution from another eligible retirement plan may request to
have all or a portion of the eligible rollover distribution paid to the Plan.The Plan Administrator may require such documentation
from the distributing plan as it deems necessary to effectuate the rollover in accordance with Code section 402 and to confirm
that such plan is an eligible retirement plan within the meaning of Code section 402(c)(8)(B).
To the extent permitted by the Plan Administrator,to the extent the Plan permits Roth Deferrals and to the extent
permitted by Code section 402A(c),Notice 2010-84 and any superseding guidance,a distribution from the Plan other than from a
designated Roth Account that is an eligible rollover distribution(as defined in Code section 408A(e))may be rolled over to a
designated Roth Account maintained under this Plan for the benefit of the individual to whom the distribution is made.
(b) Eligible Rollover Distribution.
(1) For purposes of Subsection(a),an eligible rollover distribution means any distribution of all or any
portion of a Participant's benefit under another eligible retirement plan,except that an eligible rollover distribution does not
include(A)any installment payment for a period of 10 years or more,(B)any distribution made as a result of an unforeseeable
emergency or other distribution which is made upon hardship of the employee,or(C)for any other distribution,the portion,if
any,of the distribution that is a required minimum distribution under Code section 401(ax9).
(2) In addition,an eligible retirement plan means an individual retirement account described in Code
section 408(a),an individual retirement annuity described in Code section 408(b),a qualified trust described in Code section
401(a),an annuity plan described in Code section 403(a)or 403(b),or an eligible governmental plan described in Code section
457(b),that accepts the eligible rollover distribution.
(3) If the Plan permits Roth Deferrals,the Plan may accept a rollover contribution to a Roth Deferral
Account only if it is a direct rollover from another Roth deferral account under an applicable retirement plan described in Code
section 402A(e)(1)and only to the extent the rollover is permitted under the rules of Code section 402(c).
(c) Separate Accounting.The Plan shall establish and maintain for the Participant a separate Account for any
eligible rollover distribution paid to the Plan from any eligible retirement plan that is not an eligible governmental plan under
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ARTICLES ACCOUNTSBENEFITS
Code section 457(b).In addition,the Plan shall establish and maintam for the Participant a separate Account for any eligible
rollover distribution paid to the Plan from any eligible retirement plan that is an eligible governmental plan under Code section
457(b).
Section 5.05 EARNINGS/EXPENSES
(a) Earnings.A Participant's Accounts shall be credited with earnings in the manner specified in the Adoption
Agreement.The Plan Administrator shall credit investment experience to each Participant's Account as of each Valuation Date
specified in the Adoption Agreement.Except as provided in Subsection(c),if the Adoption Agreement provides for
predetermined investments,such investments are to be used for measurement purposes only and there is no obligation for the
Plan Administrator or Company to set aside,fund or actually purchase any investments.
(b) Expenses.The expenses of administering the Plan,including(i)expenses incurred by the Plan Administrator
in the administration of the Plan,(ii)fees and expenses approved by the Plan Administrator for investment advisory,custodial,
recordkeeping,and other plan administration and communication services,and(iii)any other expenses or charges allocable to the
Plan that have been approved by the Plan Administrator may be charged,at the discretion of the Plan Administrator,to
Participants'Account balances. If amounts are deposited into an account or trust owned by the Employer,brokerage fees,
transfer taxes,and any other costs incident to the purchase or sale of securities or other investments shall be deemed to be part of
the cost of such securities or mvestments or deducted in computing the sales proceeds therefrom and shall be accounted for
accordingly.
(c) Governmental Plan.If the Plan is a Governmental Plan,the eamings/losses shall be determined with respect
to the Participant's allocable share of the earnings and losses of the Trust Fund.
Section 5.06 VESTING
(a) A Participant shall have a fully vested and nonforfeitable interest in his Accounts relating to Participant
contributions
(b) Subject to the provisions of Section 5.02(h),the Participant's interest in his Accounts relating to Company
contributions shall vest based on his years of vesting service in accordance with the terms of the Adoption Agreement.
For purposes of the Adoption Agreement,"3-7 Year Graded","2-6 Year Graded","1-5 Year Graded","1-4 Year
Graded","5 Year Cliff","3 Year Cliff"and"2 Year Cliff"shall be determined in accordance with the following schedules:
Years of Vestmg Service Vesting Percentage
"3-7 Year Graded":
Less than Three Years 0%
Three Years but less than Four Years 20%
Four Years but less than Five Years 40%
Five Years but less than Six Years 60%
Six Years but less than Seven Years 80%
Seven or More Years 100%
"2-6 Year Graded":
Less than Two Years 0%
Two Years but less than Three Years 20%
Three Years but less than Four Years 40%
Four Years but less than Five Years 60%
Five Years but less than Six Years 80%
Six or More Years 100%
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ARTICLES ACCOUNTS/BENEFITS
"1-5 Year Graded":
Less than One Year 0%
One Year but less than Two Years 20%
Two Years but less than Three Years 40%
Three Years but less than Four Years 60%
Four Years but less than Five Years 80%
Five or More Years 100%
"1-4 Year Graded":
Less than One Year 0%
One Year but less than Two Years 25%
Two Year but less than Three Years 50%
Three Years but less than Four Years 75%
Four or More Years 100%
"5 Year Cliff":
Less than Five Years 0%
Five or More Years 100%
"3 Year Cliff":
Less than Three Years 0%
Three or More Years 100%
"2 Year Cliff":
Less than Two Years 0%
Two or More Years 100%
In addition,the Adoption Agreement may provide that a Participant will become fully(100%)vested upon:(i)his attainment of
Normal Retirement Age while an Employee,(ii)his death while an Employee,(iii)his suffering a disability while an Employee,
or(iv)other event as specified in the Adoption Agreement.
(c) Special Forfeitures.Notwithstanding any provision to the contrary,a Participant shall also forfeit his or her
Account pursuant to any special forfeiture provisions in the Adoption Agreement.Such special forfeiture provisions may include,
without limitation,a provision requiring complete forfeiture of Participant's Account upon the occurrence of a specified event.
Section 5.07 FORFEITURES
(a) Non Governmental Plan.If the Plan is not a Governmental Plan,all forfeitures shall revert to the Company.
(b) Governmental Plan.If the Plan is a Governmental Plan,forfeitures shall be used to reduce Company
contributions or to pay Plan expenses.
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ARTICLE 6 DISTRIBUTIONS
ARTICLE 6 DISTRIBUTIONS
Section 6.01 TIME OF DISTRIBUTI.QN
(a) Non Governmental Plan.If the Plan is not a Governmental Plan and except as provided in Sections 6.03 and
6.04,benefits shall commence no earlier than the sixty-first(61st)day following:(i)the date of the Participant's Termination or,
(ii)if earlier and so provided in the Adoption Agreement,the date the Participant attains age 70-1/2. Not later than sixty(60)
days following the date the Participant becomes eligible to commence distributions,the Participant may elect a commencement
date for all of the Participant's Account balance. A Participant's election of a benefit commencement date under this Section
shall be irrevocable,provided,however,the Participant may,at least 30 days prior to such commencement date,elect a deferred
commencement date as permitted under Code section 457(eX9)(B). Any Participant who has made such a second election of a
deferred commencement date may not thereafter revoke or modify that election. Benefits may not commence later than the date
specified in the Adoption Agreement.
(b) Governmental Plan.If the Plan is a Governmental Plan and except as provided in Sections 6.03,6.04 and
6.07,upon(i)Termination or(ii)if earlier and so provided in the Adoption Agreement,the date the Participant attains age
70-1/2,a Participant shall be entitled to receive a distribution of his or her Account under any form of distribution permitted
under Section 6.02 commencing at the date elected by the Participant.Benefits may not commence later than the date specified m
the Adoption Agreement.
(c) Participants Receiving Differential Wage Payments During Service in the Uniformed Service.A Participant
receiving differential wage payments(as defined in Code section 3401(hx2))shall be treated as having Terminated from
employment during any period of services described in Code section 3401(hX2XA).If a Participant elects to receive a
distribution by reason of this paragraph,the Participant may not make a Participant Contribution during the 6-month period
beginning on the date of distribution.
(d) Ordering Rule.The Plan Administrator shall determine the ordering rule for distributions;provided that such
ordering rule is nondiscriminatory.Such ordering rule may provide that the Participant or Beneficiary may elect to have
payments made first or last from his Roth Deferral Account and any other Account.
Section 6.02 FORM OF DISTRIBUTION
(a) In General.A Participant's benefit under the Plan may only be paid in the forms and medium specified in the
Adoption Agreement and permitted under Code section 457 and regulations promulgated thereunder.No election of a distribution
form under this Section may be made or changed after the commencement date for such distribution form. If an election is not
made prior to the date benefits commence under Section 6.01,distributions shall be made in a single lump sum payment as soon
as practicable thereafter.
(b) Limitations.No distribution option may be selected by a Participant or Beneficiary under this Article 6 unless
it satisfies the requirements of Code sections 401(aX9)and 457(d).
(c) Cash Outs. The Plan Administrator reserves the right to adopt guidelines under which Account balances
below a specified level may be distributed in a lump sum upon Termination or at a deferred commencement date and to establish
minimum amounts of installment payments.
Section 6.03 SMALL DISTRIBUTIONS
To the extent provided in the Adoption Agreement,the Plan Administrator reserves the right,subject to the limitations
of Code section 457(eX9XA),to establish uniform guidelines under which all or a portion of a Participant's Account balances
may be distributed in a lump sum before the Participant's Termination,and either with or without the Participant's consent,
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ARTICLE 6 DISTRIBUTIONS
provided that(i)the amount of the distribution does not exceed$5,000(or the dollar limit under Code section 411(ax11),if
greater),(ii)no Deferral has been credited to the Participant's Account in the preceding twenty-four(24)months,and(iii)no
prior payment has been made to the Participant under this Section.
Section 6.04 UNFORESEEABLE EMERGENCIES
(a) In General If the Participant has an unforeseeable emergency before retirement or other Termination,the
Participant may elect to receive a lump sum distribution equal to the amount requested or,if less,the maximum amount
determined by the Plan Administrator to be permitted to be distributed under this Section.
(b) Unforeseeable Emergency Defined.An unforeseeable emergency is defined as a severe financial hardship of
the Participant resulting from:
(I) an illness or accident of the Participant,the Participant's spouse,the Participant's Beneficiary,or the
Participant's dependent(as defined in Code section 152 determined without regard to Code section 152(b)(1),(b)(2)and
(dX I)(B));
(2) loss of the Participant'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);
(3) the need to pay for the funeral expenses of the Participant's spouse,Beneficiary or dependent(as
defined in Code section 152 determined without regard to Code section 152(bx1),(bX2)and(d)(1)(B));
(4) or other similar extraordinary and unforeseeable circumstances arismg as a result of events beyond
the control of the Participant.
For example,the imminent foreclosure of or eviction from the Participant's primary residence may constitute an unforeseeable
emergency.In addition,the need to pay for medical expenses,including non-refundable deductibles,the cost of prescription drug
medication,and other similar situations,such as those described in Revenue Ruling 2010-27(significant water damage from a
water leak and funeral expenses for an adult child who is not a dependent;credit card debt is not considered unforeseeable),may
constitute an unforeseeable emergency.Except as otherwise specifically provided in this Section,neither the purchase of a home
nor the payment of college tuition is an unforeseeable emergency.
(c) Unforeseeable Emergency Distribution Standard.A distribution on account of unforeseeable emergency may
not be made to the extent that such emergency is or may be relieved through reimbursement or compensation from insurance or
otherwise,by liquidation of the Participant's assets,to the extent the liquidation of such assets would not itself cause severe
fmancial hardship,or by cessation of deferrals under the Plan.
(d) Distribution Necessary to Satisfy Emergency Need.Distributions because of an unforeseeable emergency
may not exceed the amount reasonably necessary to satisfy the emergency need(which may include any amounts necessary to
pay any federal,state,or local income taxes or penalties reasonably anticipated to result from the distribution).
Section 6.05 DEATH
(a) In General.Payments to the Participant's Beneficiary shall be subject to the election procedures in Section
6.01 and shall be made in the time and form specified in the Adoption Agreement.
(b) Death Benefits Under USERRA.Effective January 1,2007,if the Adoption Agreement specifies the Plan is a
Governmental Plan,and a Participant dies while performing qualified military service(as defined in Code section 414(u)),the
survivors of the Participant are entitled to any additional benefits(other than benefit accruals relating to the period of qualified
military service)provided under the plan had the Participant resumed and then Terminated employment on account of death
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ARTICLE 6 DISTRIBUTIONS
pursuant to Code section 401(a)(37),Notice 2010-5 and any superseding guidance.For example,this may include full vesting for
death while an Employee under Section 5.06(b)if provided under the Adoption Agreement.
Section 6.06 WITHHOLDING
To the extent required by applicable law,income and other taxes shall be withheld from each payment,and payments
shall be made reported to the appropriate governmental agency or agencies.
Section 6.07 DISTRIBUTIONS FROM ROLLOVER ACCOUNT
If the Plan is a Governmental Plan and a Participant has a separate Account attributable to rollover contributions to the
Plan,the Participant may at any time elect to receive a distribution of all or any portion of the amount held in the rollover
Account to the extent provided in the Adoption Agreement.
Section 6.08 TRANSFERS
This Section shall apply to the extent that the Adoption Agreement permits transfers to another Eligible Deferred
Compensation Plan.At the direction of the Company,the Plan Administrator may transfer assets to the other Plan as provided in
this Section.Such a transfer is permitted only if the other plan provides for such direct transfer.The Plan Administrator may
require such documentation from the other plan as it deems necessary to effectuate the transfer.A transfer shall only be permitted
to the extent that it is permissible in accordance with Code section 457(e)(10)and Treas.Reg.section 1.457-10(b).
Section 6.09 DIRECT ROLLOVERS-GOVERNMENTAL PLANS
(a) In General.This Section shall only apply to a Governmental Plan.A Participant,the surviving spouse of a
Participant(or a Participant's former spouse who is the alternate payee under a domestic relations order,as defined in Code
section 414(p)),or a non-spouse beneficiary who is entitled to an eligible rollover distribution may elect,at the time and in the
manner prescribed by the Plan Administrator,to have all or any portion of the distribution paid directly to an eligible retirement
plan specified by the Participant in a direct rollover.A non-spouse beneficiary must be a designated beneficiary within the
meaning of Code section 401(a)(9)(E)and such direct rollovers shall be subject to the terms and conditions of IRS Notice 2007-7
and superseding guidance,including but not limited to the provision in Q&A-17 regarding required mmimum distributions.
(b) Eligible Rollover Distribution.For purposes of this Section,an eligible rollover distribution means any
distribution of all or any portion of a Participant's Account,except that an eligible rollover distribution does not include(1)any
installment payment for a period of 10 years or more(2)any distribution made as a result of an unforeseeable emergency,or(3)
for any other distribution,the portion,if any,of the distribution that is a required minimum distribution under Code section
401(ax9).In addition,an eligible retirement plan means an individual retirement account described in Code section 408(a),an
individual retirement annuity described in Code section 408(b),a qualified trust described in Code section 401(a),an annuity plan
described m Code section 403(a)or 403(b),an eligible governmental plan described in Code section 457(b),or a Roth IRA
(subject to Code sections 408A(cx3XB)and 457(e)(16))that accepts the eligible rollover distribution.
If any portion of an eligible rollover distribution is attributable to payments or distributions from a Roth Deferral
Account,an eligible retirement plan shall only include another Roth deferral account under an applicable retirement plan
described in Code section 402A(e)(l)or to a Roth IRA described in Code section 408A and only to the extent the rollover is
permitted under the rules of Code section 402(c).
(c) Mandatory Rollover.In the event of a mandatory distribution greater than$1,000 in accordance with the
provisions of Sections 6.02 and 6.03,if the Participant does not elect to have such distribution paid directly to an eligible
retirement plan specified by the Participant in a direct rollover or to receive the distribution directly,then the Plan Administrator
will pay the distribution in a direct rollover to an individual retirement plan designated by the Plan Administrator.
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ARTICLE 6 DISTRIBUTIONS
Section 6.10 SERVICE CREDIT TRANSFERS
(a) This Section shall only apply to a Governmental Plan.If permitted in the Adoption Agreement and a
Participant is also a participant in a tax-qualified defined benefit governmental plan(as defined in Code section 414(d))that
provides for the acceptance of plan-to-plan transfers with respect to the Participant,then the Participant may elect to have any
portion of the Participant's Account transferred to the defined benefit governmental plan.A transfer under this Section may be
made before the Participant has Terminated.
(b) A transfer may be made under Section only if the transfer is either for the purchase of permissive service
credit(as defined in Code section 415(nx3)(A))under the receiving defined benefit governmental plan or a repayment to which
Code section 415 does not apply by reason of Code section 415(kX3)
Section 6.11 QUALIFIED HEALTH INSURANCE PREMIUMS FOR RETIRED PUBLIC SAFETY OFFICERS
If the Adoption Agreement specifies that the Plan is a Governmental Plan,the Plan Administrator may allow retired
public safety officers to elect to have distributions used to pay for qualified health insurance premiums as provided in Code
section 402(1).Such distributions shall be subject to the terms and conditions of IRS Notice 2007-7 and superseding guidance.
Section 6.12 DEATH OR DISABILITY DURING QUALIFIED MILITARY SERVICE
If provided in the Adoption Agreement,a Participant that dies or becomes disabled while performing qualified military
service(as defined in Code section 414(u))will be treated as if he had been employed by the Company on the day preceding
death or disability and Terminated employment on the day of death or disability and receive benefit accruals related to the period
of qualified military service as provided under Code section 414(u)(8),subject to paragraphs(a)and(b)below:
(a) All Participants eligible for benefits under the Plan by reason of this section shall be provided benefits on
reasonably equivalent terms.
(b) For the purposes of applying Code section 414(u)(8)(C),a Participant's contributions shall be determined
based on the Participant's average actual contributions for:
(I) the 12-month period of service with the Employer immediately prior to qualified military service,
or
(2) if service with the Employer is less than such 12-month period,the actual length of continuous
service with the employer.
Section 6.13 LOANS
(a) In General.If the Plan is a Governmental Plan and if the Adoption Agreement so provides,a Participant who
is an Employee may apply for and receive a loan from his or her Account as provided in this Section.Any such loan may not be
for an amount less than the minimum amount specified by the Administrator.If not specified by the Plan Administrator,the
minimum loan amount shall be$1,000.
(b) Maximum Loan Amount.No loan to a Participant hereunder may exceed the lesser of:(x)S50,000,reduced
by the greater of(i)the outstanding balance on any loan from the Plan to the Participant on the date the loan is made or(ii)the
highest outstanding balance on loans from the Plan to the Participant during the one-year period ending on the day before the date
the loan is approved by the Plan Administrator(not taking into account any payments made during such one-year period),or(y)
one half of the value of the Participant's vested Account(as of the Valuation Date immediately preceding the date on which such
Copyright 2002-2023 Benefit Plans Plus,LLC 15
ARTICLE 6 DISTRIBUTIONS
loan is approved by the Plan Administrator).For purposes of this Subsection,any loan from any other plan maintained by a
participating employer shall be treated as if it were a loan made from the Plan,and the Participant's vested interest under any such
other plan shall be considered a vested interest under this Plan;provided,however,that the provisions of this Subsection shall not
be applied so as to allow the amount of a loan under this Section to exceed the amount that would otherwise be permitted in the
absence of this Subsection.
(c) Terms of Loan.The terms of the loan shall:
(1) require level amortization with payments not less frequently than quarterly throughout the
repayment period,except that alternative arrangements for repayment may apply in the event that the borrower is on a bona fide
unpaid leave of absence for a period not to exceed one year for leaves other than a qualified military leave within the meaning of
Code section 414(u)or for the duration of a leave which is due to qualified military service;
(2) require that the loan be repaid within five years unless the Participant certifies in writing to the Plan
Administrator that the loan is to be used to acquire any dwelling unit which within a reasonable time is to be used(determined at
the time the loan is made)as a principal residence of the Participant;and
(3) provide for interest at a rate equal to one percentage point above the prime rate as published in the
Wall Street Journal on the first business day of the month in which the loan is approved by the Plan Administrator.
(d) Security for Loan;Default.
(I) Security.Any loan to a Participant under the Plan shall be secured by the pledge of the portion of
the Participant's interest in the Plan invested in such loan.
(2) Default.In the event that a Participant fails to make a loan payment under this Section within 90
days after the date such payment is due,a default on the loan shall occur.In the event of such default,(i)all remaining payments
on the loan shall be immediately due and payable,(ii)effective as of the first day of the calendar month next following the month
in which any such loan default occurs,the interest rate for such loan shall be(if higher than the rate otherwise applicable)the rate
being charged on loans from the Plan that are approved by the Plan Administrator in the month in which such default occurs,(iii)
no contributions shall be made on such Participant's behalf prior to the first payroll period that follows by 12 calendar months the
date of repayment in full of such loan,and(iv)the Participant shall be permanently ineligible for any future loans from the Plan.
In the case of any default on a loan to a Participant,the Plan Administrator shall apply the portion of the Participant's interest in
the Plan held as security for the loan in satisfaction of the loan on the date of Termination.In addition,the Plan Administrator
shall take any legal action it shall consider necessary or appropriate to enforce collection of the unpaid loan,with the costs of any
legal proceeding or collection to be charged to the Account of the Participant.
(e) Death.Notwithstanding anything elsewhere in the Plan to the contrary,in the event a loan is outstanding
hereunder on the date of a Participant's death,his or her estate shall be his or her Beneficiary as to the portion of his or her
interest in the Plan invested in such loan(with the Beneficiary or Beneficiaries as to the remainder of his or her interest in the
Plan to be determined in accordance with otherwise applicable provisions of the Plan).
(f) Repayment.The Participant may be required,as a condition to receiving a loan,to enter into an irrevocable
agreement authorizing the Employer to make payroll deductions from his or her Compensation as long as the Participant is an
Employee and to transfer such payroll deduction amounts to the Trustee in payment of such loan plus interest.Repayments of a
loan shall be made by payroll deduction of equal amounts(comprised of both principal and interest)from each paycheck,with
the first such deduction to be made as soon as practicable after the loan funds arc disbursed;provided however,that a Participant
may prepay the entire outstanding balance of his loan at any time(but may not make a partial prepayment);and provided,further,
that if any payroll deductions cannot be made in full because a Participant is on an unpaid leave of absence or is no longer
employed by a participating employer(that has consented to make payroll deductions for this purpose)or the Participant's
paycheck is insufficient for any other reason,the Participant shall pay directly to the Plan the full amount that would have been
deducted from the Participant's paycheck,with such payment to be made by the last business day of the calendar month in which
the amount would have been deducted.
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ARTICLE 6 DISTRIBUTIONS
Section 6.14 REFUNDS/INDEMNIFICATION
If the Plan Administrator determines that any person has directly or indirectly received excess payments under the Plan,
the Plan Administrator shall notify such person and such person shall repay such excess amount as soon as possible,but in no
event later than 30 days after the date of notification.A person receiving excess payments shall indemnify and reimburse the
Company for any liability the Company may incur for making such payments.If a person fails to timely repay an excess amount
and/or make sufficient indemnification,the Plan Administrator may:(i)to the extent permitted by applicable law,offset the
person's salary or wages,and/or(ii)offset other benefits payable hereunder.
Section 6.15 CLAIMS PROCEDURE
(a) If the Adoption Agreement specifies that the Plan is a Governmental Plan,claims procedures shall be
established by the policies and procedures of the Plan Administrator and/or Company and any other applicable law.
(b) If the Adoption Agreement specifies that the Plan maintained by a tax-exempt entity,claims procedures shall
be established by the policies and procedures of the Plan Administrator and/or Company in conformance with ERISA section 503
and comply with the provisions below.
(I) Application for Benefits. A Participant or any other person entitled to benefits from the Plan(a
"Claimant")may apply for such benefits by completing and filing a claim with the Plan Administrator. Any such claim shall be
in writing and shall include all information and evidence that the Plan Administrator deems necessary to properly evaluate the
merit of and to make any necessary determinations on a claim for benefits. The Plan Administrator may request any additional
information necessary to evaluate the claim.
(2) Timing of Notice of Denied Claim.The Plan Administrator shall notify the Claimant of any
adverse benefit determination within a reasonable period of time,but not later than 90 days(45 days if the claim relates to a
disability determination)after receipt of the claim.This period may be extended one time by the Plan for up to 90 days(30
additional days if the claim relates to a disability determination),provided that the Plan Administrator both determines that such
an extension is necessary due to matters beyond the control of the Plan and notifies the Claimant,prior to the expiration of the
initial review period,of the circumstances requiring the extension of time and the date by which the Plan expects to render a
decision.If the claim relates to a disability determination,the period for making the determination may be extended for up to an
additional 30 days if the Plan Administrator notifies the Claimant prior to the expiration of the first 30-day extension period.
(3) Content of Notice of Denied Claim. If a claim is wholly or partially denied,the Plan
Administrator shall provide the Claimant with a written notice identifying(I)the reason or reasons for such denial,(2)the
pertinent Plan provisions on which the denial is based,(3)any material or information needed to grant the claim and an
explanation of why the additional information is necessary,and(4)an explanation of the steps that the Claimant must take if he
wishes to appeal the denial including a statement that the Claimant may bring a civil action under ERISA.
(4) Appeals of Denied Claim. If a Claimant wishes to appeal the denial of a claim,he shall file a
written appeal with the Plan Administrator on or before the 60th day(180th day if the claim relates to a disability determination)
after he receives the Plan Administrator's written notice that the claim has been wholly or partially denied. The written appeal
shall identify both the grounds and specific Plan provisions upon which the appeal is based. The Claimant shall be provided,
upon request and free of charge,documents and other information relevant to his claim. A written appeal may also include any
comments,statements or documents that the Claimant may desire to provide. The Plan Administrator shall consider the merits
of the Claimant's written presentations,the merits of any facts or evidence in support of the denial of benefits,and such other
facts and circumstances as the Plan Administrator may deem relevant. The Claimant shall lose the right to appeal if the appeal
is not timely made. The Plan Administrator shall ordinarily rule on an appeal within 60 days(45 days if the claim relates to a
disability determination). However,if special circumstances require an extension and the Plan Administrator furnishes the
Claimant with a written extension notice during the initial period,the Plan Administrator may take up to 120 days(90 days if the
claim relates to a disability determination)to rule on an appeal.
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ARTICLE 6 DISTRIBUTIONS
(5) Denial of Appeal. If an appeal is wholly or partially denied,the Plan Administrator shall provide
the Claimant with a notice identifying(1)the reason or reasons for such denial,(2)the pertinent Plan provisions on which the
denial is based,(3)a statement that the Claimant is entitled to receive,upon request and free of charge,reasonable access to,and
copies of,all documents,records,and other information relevant to the Claimant's claim for benefits,and(4)a statement
describing the Claimant's right to bring an action under section 502(a)of ERISA.The determination rendered by the Plan
Administrator shall be binding upon all parties.
(6) Determinations of Disability. If the claim relates to a disability determination,determinations of
the flan Administrator shall include the information required under applicable United States Department of Labor regulations.
Section 6.16 MINOR OR LEGALLY INCOMPETENT PAYEE
If a distribution is to be made to an individual who is either a minor or legally incompetent,the Plan Administrator may
direct that such distribution be paid to the legal guardian. If a distribution is to be made to a minor and there is no legal
guardian,payment may be made to a parent of such minor or a responsible adult with whom the minor maintains his residence,or
to the custodian for such minor under the Uniform Transfer to Minors Act,if such is permitted by the laws of the state in which
such minor resides. Such payment shall fully discharge the Plan Administrator and the Company from further liability on
account thereof.
Section 6.17 MISSING PAYEE
If the Plan Administrator is unable to make payment to any Participant or other person to whom a payment is due under
the Plan because it cannot ascertain the identity or whereabouts of such Participants or other person after reasonable efforts have
been made to identify or locate such person,such payment and all subsequent payments otherwise due to such Participant or
other person shall be forfeited one year after the date any such payment first became due.
Section 6.18 2009 REQUIRED MINIMUM DISTRIBUTIONS
Notwithstanding other provisions of the Plan to the contrary;to the extent provided by the Adoption Agreement and by
Code section 401(a)(9),IRS Notice 2009-82 and any superseding guidance,a participant or beneficiary who would have been
required to receive 2009 RMDs or Extended 2009 RMDs will receive those distributions for 2009 unless the participant or
beneficiary chooses not to receive such distributions.Participants and beneficiaries described in the preceding sentence will be
given the opportunity to elect to stop receiving the distributions described in the preceding sentence.
(a) In addition,notwithstanding other provisions of the Plan to the contrary,and solely for purposes of applying
the direct rollover provisions of the Plan,certain additional distributions in 2009,as chosen above,will be treated as eligible
rollover distributions.
(b) Defmitions:
(1) "2009 RMDs"are required minimum distributions for 2009 but for the enactment of section
401(a)(9)(H)of the Code;
(2) "Extended 2009 RMDs"are one or more payments in a series of substantially equal distributions
(that include the 2009 RMDs)made at least annually and expected to last for the life(or life expectancy)of the participant,the
joint lives(or joint life expectancy)of the participant and the participant's designated beneficiary,or for a period of at least 10
years.
Copyright 2002-2023 Benefit Plans Plus,LLC 18
ARTICLE 7 PLAN ADMINISTRATION
ARTICLE 7 PLAN ADMINISTRATION
Section 7.01 PLAN ADMINISTRATOR
(a) Designation. The Plan Administrator shall be specified in the Adoption Agreement. In the absence of a
designation in the Adoption Agreement,the Plan Sponsor shall be the Plan Administrator. If a Committee is designated as the
Plan Administrator,the Committee shall consist of one or more individuals who may be Employees appointed by the Plan
Sponsor and the Committee shall elect a chairman and may adopt such rules and procedures as it deems desirable. The
Committee may also take action with or without formal meetings and may authorize one or more individuals,who may or may
not be members of the Committee,to execute documents in its behalf.
(b) Authority and Responsibility of the Plan Administrator. The Plan Administrator shall be the Plan
"administrator"as such term is defined in section 3(16)of ERISA,and as such shall have total and complete discretionary power
and authority:
(i) to make factual determinations,to construe and interpret the provisions of the Plan,to correct
defects and resolve ambiguities and inconsistencies therein and to supply omissions thereto. Any construction,interpretation or
application of the Plan by the Plan Administrator shall be final,conclusive and binding;
(ii) to determine the amount,form or timing of benefits payable hereunder and the recipient thereof and
to resolve any claim for benefits in accordance with Article 6;
(iii) to determine the amount and manner of any allocations and/or benefit accruals hereunder;
(iv) to maintain and preserve records relating to Participants,former Participants,and their
Beneficiaries and alternate payees;
(v) to prepare and furnish to Participants,Beneficiaries and alternate payees all information and notices
required under applicable law or the provisions of this Plan;
(vi) to prepare and file or publish with the Secretary of Labor,the Secretary of the Treasury,their
delegates and all other appropriate government officials all reports and other information required under law to be so filed or
published;
(vii) to approve and enforce any loan hereunder including the repayment thereof;
(viii) to provide directions to the trustee of a trust established in conjunction with this Plan(if any)with
respect to timing and methods of benefit payment,valuations at dates other than regular valuation dates and on all other matters
where called for in the Plan or requested by the trustee;
(ix) to hire such professional assistants and consultants as it,in its sole discretion,deems necessary'or
advisable;and shall be entitled,to the extent permitted by law,to rely conclusively on all tables,valuations,certificates,opinions
and reports which are furnished by same;
(x) to determine all questions of the eligibility of Employees and of the status of rights of Participants,
Beneficiaries and alternate payees;
(xi) to adjust Accounts in order to correct errors or omissions;
(xii) to determine the status and effect of any domestic relations order and to take such action as the Plan
Administrator deems appropriate in light of such domestic relations order;
Copyright 2002-2023 Benefit Plans Plus,LLC 19
ARTICLE 7 PLAN ADMINISTRATION
(xiii) to retain records on elections and waivers by Participants,their spouses and their Beneficiaries and
alternate payees;
(c) Procedures. The Plan Administrator may adopt such rules and procedures as it deems necessary,desirable,
or appropriate for the administration of the Plan,including but not limited to,procedures relating to requirements for advance
notice of any election or modification of an election,minimum and maximum amount of contributions,the types of compensation
that may be deferred,the minimum amounts or percentages that may be allocated among investment options,and the timing and
frequency of changes to investment elections.When making a determination or calculation,the Plan Administrator shall be
entitled to rely upon information furnished to it. The Plan Administrator's decisions shall be binding and conclusive as to all
parties
(d) Allocation of Duties and Responsibilities. The Plan Administrator may designate other persons to carry out
any of his duties and responsibilities under the Plan
(e) Compensation.The Plan Administrator shall serve without compensation for its services.
(l) Expenses.All direct expenses of the Plan,the Plan Administrator and any other person in furtherance of their
duties hereunder shall be paid or reimbursed by the Company.
(g) Allocation of Fiduciary Duties.A Plan fiduciary shall have only those specific powers,duties,responsibilities
and obligations as are explicitly given him under the Plan. It is intended that each fiduciary shall not be responsible for any act
or failure to act of another fiduciary. A fiduciary may serve in more than one fiduciary capacity with respect to the Plan.
Section 7.02 FUNDED STATUS
(a) Unfunded Plan.This Subsection applies if the Plan is not a Governmental Plan.The Plan is intended to
constitute an unfunded plan. Any amount due and payable pursuant to the terms of the Plan shall be paid out of the general
assets of the Company except to the extent that it is paid from a grantor trust. All assets of the Plan shall be subject to the
claims of creditors of the Company. Participants and Beneficiaries shall not have an interest in any specific asset of the
Company or in any specific asset held in a grantor trust or a Company account established as a result of participation in this Plan.
Except as may be provided under the terms of a grantor trust,the Company shall have no obligation to set aside any funds for the
purpose of making any benefit payments under this Plan. Nothing contained herein shall give any Participant any rights that are
greater than those of an unsecured creditor of the Company with respect to any unpaid amount as to which the Participant has a
vested interest. No action taken pursuant to the terms of this Plan shall be construed to create a funded arrangement,a plan
asset,or fiduciary relationship among the Company,its designee and a Participant or Beneficiary.
(b) Trust Fund.This Subsection applies if the Plan is a Governmental Plan.
(I) Assets Held in Trust.All contributions,all property and rights purchased with such amounts,and
all income attributable to such amounts,property,or rights shall be held and invested in the Trust Fund in accordance with this
Plan and the Trust Agreement.The Trust Fund,and any subtrust established under the Plan,shall be established pursuant to a
written agreement.The Trustee shall ensure that all investments,amounts,property,and rights held under the Trust Fund are held
for the exclusive benefit of Participants and their Beneficiaries.The Trust Fund shall be held in trust pursuant to the Trust
Agreement for the exclusive benefit of Participants and their Beneficiaries and defraying reasonable expenses of the Plan and of
the Trust Fund.It shall be impossible,prior to the satisfaction of all liabilities with respect to Participants and their Beneficiaries,
for any part of the assets and income of the Trust Fund to be used for,or diverted to,purposes other than for the exclusive benefit
of Participants and their Beneficiaries
(2) Custodial Accounts and Annuity Contracts.For purposes of the trust requirement of this Subsection
(b),custodial accounts and annuity contracts described in Code section 401(f)that satisfy the requirements of Treas.Reg.
1.457-8(a)(3)are treated as trusts under rules similar to the rules of Code section 401(f).
Copyright 2002-2023 Benefit Plans Plus,LLC 20
ARTICLE 7 PLAN ADMINISTRATION
(3) Creditors.Except as expressly provided in the Plan,the interests of each Participant or Beneficiary
under the Plan are not subject to the claims of the Participant's or Beneficiary's creditors.
(4) IRS Levy.the Plan Administrator may pay from a Participant's or Beneficiary's Account balance
the amount that the Plan Administrator fords is lawfully demanded under a levy issued by the Internal Revenue Service with
respect to that Participant or Beneficiary or is sought to be collected by the United States Government under a judgment resulting
from an unpaid tax assessment against the Participant or Beneficiary.
(5) Mistaken Contributions.If any contribution(or any portion of a contribution)is made to the Plan
by a good faith mistake of fact,then within one year after the payment of the contribution,and upon receipt in good order of a
proper request approved by the Plan Administrator,the amount of the mistaken contribution(adjusted for any income or loss in
value,if any,allocable thereto)shall be returned directly to the Participant or,to the extent required or permitted by the Plan
Administrator,to the Employer.
Section 7.03 INDEMNIFICATION
Unless otherwise provided in the Adoption Agreement,the Company shall indemnify and hold harmless any person
serving as the Plan Administrator and,if applicable,the Trustee(and their delegates)from all claims,liabilities,losses,damages
and expenses,including reasonable attorneys'fees and expenses,incurred by such persons in connection with their duties
hereunder to the extent not covered by insurance,except when the same is due to such person's own gross negligence,willful
misconduct,lack of good faith,or breach of its fiduciary duties under this Plan.
Section 7.04 COMMUNICATIONS
All enrollments,elections,designations,applications and other communications by or from an employee,Participant,
Beneficiary,or legal representative of any such person regarding that person's rights under the Plan shall be made in the form and
manner established by the Plan Administrator. Neither the Plan Administrator nor the Company shall be required to give effect
to any such communication that is not made on the prescribed form and in the prescribed manner and that does not contain all
information called for on the prescribed form.
Copyright 2002-2023 Benefit Plans Plus,LLC 21
ARTICLE 8 AMENDMENT AND TERMINATION
ARTICLE 8 AMENDMENT AND TERMINATION
Section 8.01 AMENDMENT/TERMINATION
The provisions of the Plan may be amended and or terminated in writing at any time and from time to time by the Plan
Sponsor.Notwithstanding the foregoing,an amendment/termination shall have no effect to the extent that it impermissibly
accelerates a benefit payment or otherwise does not comply with Code section 457 and the regulations promulgated thereunder.
Distributions may be made upon termination of the Plan to the extent such payments comply with Treas.Reg.section
1.457-10(a).No amendment or termination specified in this Article 8 shall result in a reduction or forfeiture of a Participant's
Account unless such reduction or forfeiture is expressly provided under the terms of the Plan.
Copyright 2002-2023 Benefit Plans Plus,LLC 22
ARTICLE 9 MISCELLANEOUS
ARTICLE 9 MISCELLANEOUS
Section 9.01 NONALIENATION OF BENEFITS
No Participant or Beneficiary shall have the right to alienate,anticipate,commute,pledge,encumber or assign any of
the benefits or payments which he may expect to receive,contingently or otherwise,under the Plan.
Section 9.02 ODRO
Notwithstanding Section 9.01,if a judgment,decree or order(including approval of a property settlement agreement)
that relates to the provision of child support,alimony payments,or the marital property rights of a spouse or former spouse,child,
or other dependent of a Participant is made pursuant to the domestic relations law of any state("domestic relations order"),then
the amount of the Participant's Account shall be paid in the manner and to the person or persons so directed in the domestic
relations order.Such payment shall be made without regard to whether the Participant is eligible for a distribution of benefits
under the Plan.The Plan Administrator shall establish reasonable procedures for determining the status of any such decree or
order and for effectuating distribution pursuant to the domestic relations order.
Section 9 03 NO RIGHT TO EMPLOYMENT
Nothing contained in this Plan shall be construed as a contract of employment between the Company and the
Participant,or as a right of any Employee to continue in the employment of the Company,or as a limitation of the right of the
Company to discharge any of its Employees,with or without cause.
Section 9.04 GOVERNING LAW
The Plan shall be construed in accordance with and governed by the laws of the state or commonwealth of organization
of the Plan Sponsor to the extent not preempted by Federal law.
Section 9.05 TAX EFFECT
The Company does not represent or guarantee that any particular federal,state or local income,payroll,personal
property or other tax consequence will result from participation in this Plan. A Participant should consult with professional tax
advisors to determine the tax consequences of his or her participation Furthermore,the Company does not represent or
guarantee investment returns with respect to any predetermined investment options and shall not be required to restore any loss
which may result from such investment or lack of investment.
Section 9.06 ASSIGNMENT
The Company may transfer,assign or encumber any of its rights,privileges,duties or obligations under this
Agreement.
Section 9.07 SEVERABILITY OF PROVISIONS
If any provision of the Plan shall be held invalid or unenforceable,such invalidity or unenforceability shall not affect
any other provisions hereof,and the Plan shall be construed and enforced as if such provisions had not been included
Copyright 2002-2023 Benefit Plans Plus,I.I,C 23
ARTICLE 9 MISCELLANEOUS
Section 9.08 HEADINGS AND CAPTIONS
The headings and captions herein are provided for reference and convenience only,shall not be considered part of the
Plan,and shall not be employed in the construction of the Plan.
Section 9.09 GENDER AND NUMBER
Except where otherwise clearly indicated by context,the masculine and the neuter shall include the feminine and the
neuter,the singular shall include the plural,and vice-versa.
Copyright 2002-2023 Benefit Plans Plus,LAC 24
CITY OF ELGIN DEFERRED COMPENSATION PLAN FOR PUBLIC EMPLOYEES
LOAN PROCEDURES
This document contains important information about the procedures for obtaining a loan from the Plan.The
following rules shall apply to the loan program:
Procedure for Applying for a Loan. If you are an active Participant in the City of Elfin Deferred
Compensation Plan for Public Emplovees,you may apply for a loan from the Plan. You must complete a
loan application form and submit the completed form and supporting materials to the Plan Administrator.
All loan applications will be reviewed on a uniform and nondiscriminatory basis and your loan will be
approved if the Plan Administrator determines that you have the ability to repay the loan and that the loan
is adequately secured. Loan application forms may be obtained from the Plan Administrator.
Administration of the Plan Loan Program. The Plan loan program is administered by the Plan
Administrator.
Promissory Note. If your loan is approved,you will be required to sign a promissory note.
Type and Amount of Loan. The Plan does not restrict the purposes for which loans may be made.
However,the Plan does set maximum and minimum limits on the amount of a loan.
Maximum Amount of Loan. A loan cannot be greater than 50%of the vested accrued benefit under the
Plan. Additionally,the loan cannot exceed$50,000,reduced by the excess(if any),of the highest
outstanding balance of loans from the Plan during the 12-month period ending on the day before the date a
new loan is made,over the outstanding balance of loans from the Plan on the date the new loan is made.
Repayment. Loans must be paid in equal payments over a period not extending beyond five years from the
date of the loan;unless you certify in writing to the Plan Administrator that the loan is to be used to acquire
any dwelling unit then the loan term cannot extend beyond 30 years(determined at the time the loan is
made)as your principal residence.If you go on a leave of absence or go on active service in the military,
you may be able to suspend loan repayments. Please contact the Plan Administrator to determine whether
your leave of absence qualifies.You must repay a loan in accordance with the repayment schedule or you
may repay the loan in full. Partial early loan payoffs are not permitted.The loan will become payable in
full on your termination of employment.
Maximum Number of Loans. The maximum number of loans outstanding at any one time is one.
Minimum Loan Amount.The minimum loan amount is$1,000.
Interest Rate. This Plan uses the prime interest rate listed in The Wall Street Journal plus 0.5%. However,
you may qualify for a lower interest rate if you are on active duty in the military.If you are on active duty,
please contact the Plan Administrator to determine whether you qualify for the lower interest rate.
Collateral. Your vested accrued benefit under the Plan will serve as collateral for the loan. However,a
maximum of 50%of your vested accrued benefit may be used as collateral.
Payroll Deduction. Payments will be made through payroll deduction from each regular paycheck.
Fees. The Plan charges a loan processing fee of$ . This amount will be deducted from the
proceeds of the loan.
Default. Your loan will be in default if a scheduled payment becomes 90 days overdue. Upon default,the
entire balance of the loan will be immediately due and entire balance be a treated as a taxable distribution
to you. In addition,your vested accrued benefit may be reduced by the amount of the outstanding principal
and interest on the loan. In other cases,this offset will not occur until you are entitled to receive benefits
(for example,upon your termination of employment).
If applicable-Coronavirus-related loans. The following provisions only apply to qualified individuals
who satisfy one of the following criteria:(1)they were diagnosed with the virus SARS-CoV-2 or with
coronavirus disease 2019(referred to collectively as COVID-19)by a test approved by the Centers for
Disease Control and Prevention(including a test authorized under the Federal Food,Drug,and Cosmetic
Act);(2)their spouse or their dependent was diagnosed with COVID-19 by a test approved by the Centers
for Disease Control and Prevention(including a test authorized under the Federal Food,Drug,and
Cosmetic Act);or(3)they have experienced adverse fmancial consequences because:(i)they,their spouse,
or a member of their household was quarantined,furloughed or laid off,or had work hours reduced due to
COVID-19;(ii)they,their spouse,or a member of their household was unable to work due to lack of
childcare due to COVID-19;(iii)a business owned or operated by them,their spouse,or a member of their
household closed or reduced hours due to COVID-19;or(iv)they,their spouse,or a member of their
household had a reduction in pay(or self-employment income)due to COVID-19 or had a job offer
rescinded or start date for a job delayed due to COVID-19.
• Coronavirus-related loans are available for qualified individuals from March 27,2020 through
September 22,2020.A coronavirus-related loan may be up to the lesser of:(i) 100%of the vested
account balance under the Plan;or(ii)$100,000 minus the difference between the highest
outstanding balance of loans in the past 12 months and the outstanding balance of loans from the
Plan on the date the loan is made.
• Qualified individuals may use 100%of their vested account balance as collateral for coronavirus-
related loans.
• Qualified individuals impacted by the coronavirus may suspend any loan payment due by
December 31,2020 for up to one year.Interest on the loan will continue to accrue during this
suspension.The loan end date and maximum term will be adjusted accordingly.
• Qualified individuals impacted by the coronavirus will not be in default for missing a scheduled
payment from March 27,2020 through December 31,2020.Interest on the loan will continue to
accrue and the loan end date and maximum term will be adjusted accordingly.
CITY OF ELGIN DEFERRED COMPENSATION PLAN FOR PUBLIC EMPLOYEES
PROCEDURES FOR DETERMINING THE
QUALIFIED STATUS OF A DOMESTIC RELATIONS ORDER
1. Upon receipt of a written notice of a domestic relations order("DRO"),the Plan Administrator will,within
a reasonable amount of time,send a written notice of receipt of the order as well as a copy of these
procedures to the affected participant,each named alternate payee and any legal counsel representing the
parties.
2. Upon receipt of the DRO,the Plan Administrator will separately account for,and will place a freeze on,the
participant's benefit which would be payable to the alternate payee as if the DRO is qualified. The freeze
will remain on the participant's benefit until the earlier of:(i) 18 months from the date the benefit was
frozen,(ii)the date the distribution is made to the alternate payee,(iii)the date the Plan Administrator
receives a court order releasing the participant's benefit from the freeze,or(iv)as of the end of the 30 day
appeal period specified in Paragraph 5 if no appeal is filed within such period. In no event will a
participant's benefit be frozen for longer than 18 months. If the DRO is not found to be qualified within
the period specified above,the Plan Administrator will remove the freeze on the participant's benefit and
may treat the participant's benefit as if there had been no DRO.
3. After receipt of the DRO,the Plan Administrator will determine whether the order is qualified by
ascertaining whether the order meets all of the statutory requirements,the requirements set forth in any
procedures established by the Plan Administrator and by using the attached checklist. The determination
and notification under this Paragraph 3 will be made within a reasonable period to be fixed by the Plan
Administrator.
4. If the Plan Administrator determines that the DRO meets the requirements set forth in Paragraph 3 and is a
qualified domestic relations order("QDRO"),the Plan Administrator will notify in writing the affected
participant,each named alternate payee and any legal counsel representing the parties. The Plan
Administrator will create an account in the name of each alternate payee,if necessary,and shall arrange for
the benefits to be paid to the alternate payee in accordance with the QDRO. The following rules shall
apply to the account of the Alternate Payee:
(a) Distribution. The Plan Administrator may distribute the benefit of an alternate payee
before to the date the participant has a termination of employment or prior to the date the participant attains
his earliest retirement age.
(b) Investment Funds. If the DRO does not specify the participant's accounts or investment
funds to be set aside to an alternate payee,any amount transferable under the DRO,other than amounts
used as security for a plan loan,will be segregated on a pro rata basis.
(c) Default Rules. Unless a QDRO provides to the contrary:
(1) Investment Returns. An alternate payee will be credited with the same rate of
gain/loss as the account of the participant from the effective date of the account division to the date the
order is processed by the plan.
(2) Death Benefits. An alternate payee has the right to designate a beneficiary who
shall receive benefits payable to an alternate payee which have not been distributed at the time of the
alternate payee's death.
(3) Investment Direction. An alternate payee has the right to direct the investment
of its account created by the QDRO in the same manner as the participant.
(d) Loans. An alternate payee in not permitted to make a loan from the plan.
5. If the Plan Administrator determines that the DRO does not meet the requirements set forth in Paragraph 3,
the Plan Administrator will notify in writing the affected participant,each named alternate payee and any
legal counsel representing the parties. The notification will include the reasons why the DRO does not
meet the requirements of Paragraph 3. The affected participant or alternate payee may file a claim with
the Plan Administrator for a review of the Plan Administrator's determination under Paragraph 3,in
accordance with the Plan's procedures for the filing and review of claims,except that any such claim must
be filed with the Plan Administrator within 30 days after the date such participant or alternate payee
receives written notice of the Plan Administrator's determination under Paragraph 3.
6. These Procedures may be amended at any time.
CITY OF ELGIN DEFERRED COMPENSATION PLAN FOR PUBLIC EMPLOYEES
QUALIFIED DOMESTIC RELATIONS ORDER CHECKLIST
1. Does the order specify that it is made in accordance with a state domestic relations law?
[ ] Yes
[ ] No. Required Changes:
Comments. A QDRO may take the form of a judgment,decree,or court order(including a court approval
of a property settlement agreement)made pursuant to a state domestic relations law(including community
property law). It must relate to the provision of a child support,alimony or material property rights to a
spouse(present or former),child,or other dependent of the participant.
2. Does the order specify the plan or plans to which it applies?
[ ] Yes
[ ] No. Required Changes:
Comments. A QDRO must clearly specify each plan to which it applies. If multiple plans are specified,
the order of payment should be included if appropriate,e.g.,which of the plans should be used for
satisfying specific obligations.
3. Does the order specify the plan participant and each alternate payee by name,social security number and
mailing address(or does the Plan Administrator have reason to know the participant's/alternate payee's
address)?
[ ] Yes
[ ] No. Required Changes:
Comments. A QDRO must specify the name and address of the participant and each alternate payee.The
last known mailing address(if any)is sufficient.
4. Does the order create or recognize the alternate payee's right to all or part of the participant's benefits under
the plan?
[ ] Yes
[ ] No. Required Changes:
Comments. A QDRO must create or recognize the existence of an alternate payee's right to,or assign to
an alternate payee the right to,receive all or a portion of the benefits payable with respect to a participant
under a plan.
5. Does the order specify the amount or percentage of the participant's benefit to be paid by the plan to each
alternate payee and the date on which such determination is made(or clearly designate the manner to
determine the amount or percentage)?
[ ] Yes
[ ] No. Required Changes:
Comments. A QDRO must clearly specify the amount or percentage of the participant's benefits to be
paid to each alternate payee,or the manner in which this can be determined.
If the order relates to a defined contribution plan,the order must provide how gains and losses accrued
between the account division date and the date the order is processed are to be allocated between the
participant and the alternate payee.
6. Is it clear that the total benefits payable to the alternate payees do not exceed the value of the participant's
benefit less any amount used as security for a loan?
[ ] Yes
[ ] No. Required Changes:
Comments. A QDRO cannot require a plan to provide increased benefits or pay amounts in excess of the
participant's liquid assets.
7. Are all benefit payments and the timing of distributions provided for in the order consistent with the types
or forms of benefits or options provided under the Plan or required to be offered by law?
[ ] Yes
[ ] No. Required Changes:
Comments. The QDRO may specify when the benefit should be paid to the alternate payee. The QDRO
may also provide for payments to be made in other permissible forms as directed by the order and as
permitted under the plan.
8. Is the order consistent with all other QDROs received by the Plan with respect to the participant?
[ ] Not applicable
[ ] Yes
[ ] No. Required Changes:
Comments. A QDRO cannot require benefits to be paid to an alternate payee that are required to be paid
to another alternate payee under a prior QDRO.
9. Is the order free of any unnecessary conditions,obligations or representations that would appear to bind the
Plan Administrator if it approved the order?
[ ] Yes
[ ] No. Required Changes:
Comments. If the order includes conditions,obligations or representations applicable to the Plan
Administrator that are not required for an order to be a QDRO,but which may impose liability or
unacceptable administrative burdens on the Plan Administrator,the order will be rejected.
Date:
TO:
Participant
Attorney for Participant
Alternate Payee
Attorney for Alternate Payee
Re: Domestic Relations Order submitted to the
City of Elgin Deferred Compensation Plan for Public Employees
OPTION-DRAFT
We have received the proposed domestic relations order submitted in your correspondence of
. This order will be evaluated in accordance with the terms of the enclosed qualified
domestic relations order procedures.
OPTION-FINAL
We have received the domestic relations order submitted in your correspondence of
This order will be evaluated in accordance with the terms of the enclosed qualified domestic
relations order procedures. Please note that Paragraph 2 of the enclosed procedures provides
that the Plan administrator will separately account for,and will place a freeze on,the
participant's benefit which would be payable to the alternate payee as if the order is qualified.
If you have any questions,please call.
Very truly yours,
Plan Administrator
Date:
TO:
Participant
Attorney for Participant
Alternate Payee
Attorney for Alternate Payee
Re: Domestic Relations Order submitted to the
City of Elgin Deferred Compensation Plan for Public Employees
OPTION -ACCEPT DRAFT
We have determined that the proposed domestic relations order submitted in your
correspondence of would be accepted by the plan as a qualified domestic relations
order. This determination is subject to the receipt of a valid, final domestic relations order in
the same form as presented.
OPTION -ACCEPT FINAL
We have determined that the domestic relations order submitted in your correspondence of
will be accepted by the plan as a qualified domestic relations order. Please contact the
undersigned for further information about the payment of benefits to the alternate payee.
OPTION-ACCEPT
Acceptance of the domestic relations order relates solely to the division of the participant's
benefit in the plan. Nothing contained herein shall be construed as a representation or warranty
by the Plan Administrator or any other party as to any particular legal or tax effect other than that
specified in the preceding sentence. The Plan Administrator accepts no duty or responsibility in
addition to that required of it by applicable law.
OPTION - DENY
We have determined that the domestic relations order submitted in your correspondence of
will not be accepted by the plan as a qualified domestic relations order.
Please review the enclosed qualified domestic relations order procedures for more information.
If you have any questions, please call.
Very truly yours,
Plan Administrator