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Home My WebLink AboutResolution 02-175-CCResolution Number 2002-175—CC RESOLUTION ADOPTING AMENDMENT TO DEFERRED COMPENSATION PLAN WHEREAS, the Grant County Commissioners (hereinafter "Employer") heretofore established the Deferred Compensation Plan ( hereinafter "Plan"), and WHEREAS, the Employer desires to amend the Plan to conform with the final and temporary Treasury regulations under §401(a)(9) of the Internal Revenue Code as published in the Federal Register on April 17, 2002, 74 FR 18987; and WHEREAS, this amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this amendment. NOW THEREFORE, BE IT RESOLVED, that, effective as indicated herein, the Employer hereby amends the Plan as follows: PART I — Plan Document Amendment — Section 4.7 of the Plan is replaced in its entirety with the following: "Section 4.7 Minimum Distribution Requirements. (a) General Rules (i) Effective Date. Unless an earlier effective date is specified in Part II below, the provisions of this article will apply for purposes of determining required minimum distributions for calendar years beginning with the 2003 calendar year. (ii) Coordination with Minimum Distribution Requirements Previously in Effect. If the Plan specifies an effective date of this article that is earlier than calendar years beginning with the 2003 calendar year, required minimum distributions for 2002 under this article will be determined as follows. If the total amount of 2002 required minimum distributions under the plan made to the distributee prior to the effective date of this article equals or exceeds the required minimum distributions determined under this article, then no additional distributions will be required to be made for 2002 on or after such date to the distributee. If the total amount of 2002 required minimum distributions under the plan made to the distributee prior to the effective date of this article is less than the amount determined under this article, then required minimum distributions for 2002 on and after such date will be determined so that the total amount of required minimum distributions for 2002 made to the distributee will be the amount determined under this article. (iii) Precedence. The requirements of this article will take precedence over any inconsistent provisions of the plan. (iv) Requirements of Treasury Regulations Incorporated. All distributions required under this article will be determined and made in accordance with the Treasury regulations under section 401(a)(9) of the Internal Revenue Code. (v) TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions of this article, distributions may be made under a designation made before January 1, 1984, in accordance with section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the plan that relate to section 242(b)(2) of TEFRA GOV 457 Plan - 1 - June 2002 (2) if the participant's sole designated beneficiary for the distribution calendar year is the participant's spouse, the quotient obtained by dividing the participant's account balance by the number in the Joint and Last Survivor Table set forth in section 1.401(a)(9)-9 of the Treasury regulations, using the participant's and spouse's attained ages as of the participant's and spouse's birthdays in the distribution calendar year. (ii) Lifetime Required Minimum Distributions Continue Through Year of Participant's Death. Required minimum distributions will be determined under this section 4.7(c) beginning with the first distribution calendar year and up to and including the distribution calendar year that includes the participant's date of death (d) Required Minimum Distributions After Participant's Death. (i) Death On or After Date Distributions Begin. (1) Participant Survived by Designated Beneficiary. If the participant dies on or after the date distributions begin and there is a designated beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the participant's death is the quotient obtained by dividing the participant's account balance by the longer of the remaining life expectancy of the participant or the remaining life expectancy of the participant's designated beneficiary, determined as follows: The participant's remaining life expectancy is calculated using the age of the participant in the year of death, reduced by one for each subsequent year. (II) If the participant's surviving spouse is the participant's sole designated beneficiary, the remaining life expectancy of the surviving spouse is calculated for each distribution calendar year after the year of the participant's death using the surviving spouse's age as of the spouse's birthday in that year. For distribution calendar years after the year of the surviving spouse's death, the remaining life expectancy of the surviving spouse is calculated using the age of the surviving spouse as of the spouse's birthday in the calendar year of the spouse's death, reduced by one for each subsequent calendar year. (III) If the participant's surviving spouse is not the participant's sole designated beneficiary, the designated beneficiary's remaining life expectancy is calculated using the age of the beneficiary in the year following the year of the participant's death, reduced by one for each subsequent year. (2) No Designated Beneficiary. If the participant dies on or after the date distributions begin and there is no designated beneficiary as of September 30 of the year after the year of the participant's death, the minimum amount that will be distributed for each distribution calendar year after the year of the participant's death is the quotient obtained by dividing the participant's account balance by the participant's remaining life expectancy calculated using the age of the participant in the year of death, reduced by one for each subsequent year. (ii) Death Before Date Distributions Begin. (1) Participant Survived by Designated Beneficiary. Except as provided in this section 4.7, if the participant dies before the date distributions begin and there is a designated beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the participant's death is the quotient obtained by dividing the participant's account balance by the remaining life expectancy of the participant's designated beneficiary, determined as provided in section 4.7(d)(i). (2) No Designated Beneficiary. If the participant dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year following the year of the -3 . increased by the amount of any contributions made and allocated or forfeitures allocated to the account balance as of dates in the valuation calendar year after the valuation date and decreased by distributions made in the valuation calendar year after the valuation date. The account balance for the valuation calendar year includes any amounts rolled over or transferred to the plan either in the valuation calendar year or in the distribution calendar year if distributed or transferred in the valuation calendar year. (v) Required beginning date. The require beginning date means the April 1st following the later of (i) the calendar year in which the Participant attains age 70-1/2 or (ii) the calendar year in which the Participant retires. PART II — Plan Amendment Optional Effective Date Section 1. Effective Date of Plan Amendment for Section 401(a)(9) Final and Temporary Treasury Regulations. If elected below, the provisions of this amendment will apply as well for purposes of determining required minimum distributions for the 2002 distribution calendar vear. Option 1: ❑ Yes, this amendment will apply to the 2002 distribution calendar year for distributions that are made on or after 2002. Option 2: ® No, this amendment will not apply to the 2002 distribution calendar year. if no option is selected, Option 2 shall be deemed to be selected. IN WITNESS WHEREOF, the Employer has executed this Plan Amendment this 6th day of November , 2002 SEAL Attest: Clerk of the Board (Title) (arr ness) 3 (Title)