10-146 Resolution No. 10-146
RESOLUTION
RATIFYING THE EXECUTION OF A FIRST AMENDMENT TO THE
ELGIN 457 GOVERNMENTAL DEFERRED COMPENSATION PLAN & TRUST
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that it
hereby ratifies and approves the execution of a First Amendment to the Elgin 457 Governmental
Deferred Compensation Plan&Trust by Sean R. Stegall,City Manager,a copy of which is attached
hereto and made a part hereof.
s/Ed Schock
Ed Schock, Mayor
Presented: July 14, 2010
Adopted: July 14, 2010
Vote: Yeas: 7 Nays: 0
Attest:
s/Diane Robertson
Diane Robertson, City Clerk
FIRST AMENDMENT TO THE
ELGIN 457 GOVERNMENTAL DEFERRED COMPENSATION PLAN& TRUST
Permit Outstanding Loans to be Rolled Into the Plan
WHEREAS, the City of Elgin ("Elgin") maintains the Elgin 457 Governmental Deferred
Compensation Plan &Trust(the "Plan") for the benefit of its eligible employees;
WHEREAS, Article XII of the Plan provides that Elgin may amend the Plan; and
WHEREAS, the City Council recently terminated the Elgin Nonunion Money Purchase Plan
(the"MPP") and whereby certain participants under the MPP had outstanding loans with respect to their
accounts;
WHEREAS, that the City Council via Resolution dated May 26, 2010, authorized the City
Manager to make such other changes or take such other actions deemed necessary or desirable and in
the best interests of Elgin, or as may be recommended by legal counsel to Elgin to effectuate the
termination of the MPP;
WHEREAS, if Elgin amends this Plan to accept rollovers from the MPP which contain
outstanding loans under the MPP, those affected participants will not have negative tax consequences
triggered with respect to the distribution of any such loans; and
WHEREAS, the City Manager now deems it desirable to amend the Plan to permit such loan
rollovers in this specific circumstance.
NOW THEREFORE, the Plan is hereby amended, effective as of June 1, 2010, by adding the
following sentences immediately at the end of paragraph(a)of Section 6.11 of the Plan:
"Notwithstanding anything to the contrary, if a Participant is rolling into the Plan his or her prior
account balance under the Elgin Nonunion Money Purchase Plan and such account balance has
an associated outstanding loan connected thereto, solely with respect to a rollover from the Elgin
Nonunion Money Purchase Plan into this Plan, the Employer will accept such rollover with the
outstanding loan intact and administer such accepted loan until its full repayment.
Notwithstanding the outstanding loan accepted which shall run its course under this Plan, any
other loan requested by the Participant is subject to the provisions of Article VIII. Other than
the situation of the Elgin Nonunion Money Purchase Plan set forth above, this Plan shall not
accept any outstanding loans in connection with any rollover."
IN WITNESS WHEREOF, the City Manager who_ s designated the authority to execute this
First Amendment hereby affixes his signature as of this ;2 " day of June,2010.
111 -4k7,ir