HomeMy WebLinkAboutResolution 04-019-CCBOARD OF COUNTY COMMISSIONERS
Grant County, Washington
RESOLUTION ADOPTING AMENDMENT TO RESOLUTION No. 04 -01q -CC
DEFERRED COMPENSATION PLAN
WHEREAS, Grant County passed resolution number 03 -167 -CC on December 22, 2003
titled, "Resolution Adopting Amendment to Deferred Compensation Plan," this resolution is
hereby repealed in its entirety; and
WHEREAS, that Resolution 03 -167 -CC is repealed in its entirety, to correct a Hartford
Life Insurance Company administrative error that incorrectly lists an amendment not applicable
to the Grant County Deferred Compensation Plan; and
WHEREAS, pursuant to chapter 48.62 RCW, local government entities, including Grant
County, have the authority to establish the Deferred Compensation Plan; and
WHEREAS, the Board of County Commissioners ("BOCC"), as the duly elected
governing body of the Grant County, is the "governing body" of Grant County within the
contemplation of chapter 48.62 RCW; and
WHEREAS, the Employer desires to amend the Plan to conform with the final 457
Treasury regulations ("regulations") issued in July 2003; and
WHEREAS, this amendment is intended as good faith compliance with the requirements
of the regulations, and
NOW THEREFORE, BE IT RESOLVED THAT effective January 1, 2004 the
Employer hereby amends the Plan by:
A. replacing section 2.3 with the following:
"2.3 Agreement Effective Date
In general, an Employee must complete and file with the Employer a Participation
Agreement prior to the month deferrals begin. Notwithstanding this requirement, the
Employer may establish a cutoff date for receiving Participation Agreements as long as
the cutoff is no later than the deadline provided in section 1.457-4(b) of the final 457
regulations and the cutoff date is applied in a nondiscriminatory manner. Thereafter,
during each month in which the Employee is a Participant in the Plan, that portion of his
said Compensation which is specified by the Employee in the Participation Agreement,
shall be deferred and paid in accordance with the provisions of this Plan."
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B. deleting the following portion of section 2.6 and renumbering section 2.6(d) and 2.6(e) as
2.6(c) and 2.6(d) respectively:
"(c) The pre -retirement catch-up provision may not be used during the calendar year that
the Participant ceases to be an Employee."
C. replacing section 4.2, 7.2 and 7.3 with the following:
"4.2 Unforeseeable Emergency Distribution
A Participant may apply for a lump sum withdrawal of funds from the Plan in the event
of an unforeseeable emergency. The Employer will evaluate the request for conformity
with its interpretation of the applicable regulations. The decision of the Employer
concerning whether an unforeseen emergency exists shall be final.
An unforeseeable emergency is a severe financial hardship of the Participant or
Beneficiary resulting from an illness or accident of the Participant or Beneficiary, the
Participant's or Beneficiary's spouse, or the Participant's or Beneficiary's dependent (as
defined in Code section 152(a)); loss of the Participant's or Beneficiary's property due to
casualty (including the need to rebuild a home following damage to a home not otherwise
covered by homeowner's insurance, e.g., as a result of a natural disaster); or other similar
extraordinary and unforeseeable circumstances arising as a result of events beyond the
control of the participant or the beneficiary.
Examples of unforeseeable emergencies include (1) imminent foreclosure of or eviction
from the Participant's or Beneficiary's primary residence, (2) the need to pay for medical
expenses (including non- refundable deductibles), as well as for the cost of prescription
drug medication and (3) the need to pay for the funeral expenses of a spouse or a
dependent (as defined in Code section 152(a))_ Note that the purchase of a home and the
payment of college tuition are typically not unforeseeable emergencies.
The Participant must satisfy the Employer that the facts and circumstances of his or her
situation fall within the definition of unforeseeable emergency. A distribution on account
of an unforeseeable emergency may not be made to the extent the emergency is or may
be relieved through reimbursement or compensation from insurance or otherwise by
liquidation of the Participant's assets (to the extent liquidation would not itself cause
severe financial hardship) or by cessation of deferrals under the Plan."
"7.2 Transfers In
All or a portion of an Employee's benefit may be transferred from another Eligible
Deferred Compensation Plan maintained by the Employer or another eligible
governmental employer and credited to the Participant's Account under this Plan as long
as the transferor plan provides that such transfer can be made and
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(a) the transfer is from a plan of another employer and the Employee has severed
employment with such other employer; or
(b) the transfer is made between eligible governmental plans sponsored by the
Employer: or
(c) the entire plan's assets are transferred from another eligible governmental plan in
the same state,
As it deems necessary, the Employer may require such documentation from the transferor
plan to effect the transfer, to confirm that such plan is an Eligible Deferred Compensation
Plan within the meaning of Code Section 457(b) and to ensure that transfers are provided
for under such plan.
The Employer may refuse to accept a transfer in the form of assets other than cash, unless
the Employer agrees to hold such other assets in trust under the Plan.
Any amounts transferred that have been deferred during the current calendar year will be
considered deferrals subject to current calendar year deferral limitation.
If a transfer, occurring on or after January 1, 2002, is associated with a distributable event
and the Employee is eligible to receive an eligible rollover distribution as defined in
Section 402(c)(4) of the Code, such transfer will be considered a Rollover Contribution
subject to the provisions of Section 2.8."
"7.3 Transfers Out
All or a portion of a Participant Account may be transferred to another Eligible Deferred
Compensation Plan maintained by another eligible governmental employer as long as the
transferee plan provides that transfers can be made and
(a) the transfer is to a plan of another employer and the Employee has severed
employment; or
(b) the transfer is made between eligible governmental plans sponsored by the
Employer; or
(c) the entire plan's assets are transferred to another eligible governmental plan in the
same state.
Upon the completion of the transfer, the Plan and Employer are discharged of any
liability to the Participant to pay amounts so transferred.
As it deems necessary, the Employer may require such documentation from the other
plan to effect the transfer, to confirm that such plan is an Eligible Deferred Compensation
Plan within the meaning of Code Section 457(b) and to ensure that transfers are provided
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for under such plan. Such transfers shall be made only under such circumstances as are
permitted under Code Section 457 and the applicable regulations.
If a transfer, occurring on or after January 1, 2002, is associated with a distributable event
and the distribution is an eligible rollover distribution as defined Section 402(c)(4) of the
Code, such transfer will be considered a Direct Rollover subject to the provisions of
Section 7.1
IN WITNESS WHEREOF, the Employer has executed this Plan Amendment this
9th day of laxaefy; 2004.
February
BOARD OF COUNTY COMMISSIONERS
Yea Nay Abstain GRANT COUNTY, WASHINGTON
LeRoy .—A I I i s o n', C air
ATTEST: l' El El
Tim Snea , Me ber
Clerk of the Board 1
�Y
Deborah Kay Moe, Member
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