HomeMy WebLinkAbout1985 Ordinance No. 085I
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ORDINA N:E NO .fl
SER IES OF 19 85
DY Alll'HORITY
COU i'C IL BILL NO . 88.1
IITTRODOCED DY COUi'CI L
MEMBER HI G)IIY
AN ORDINAi'CE ELOC'rt NG AND APP LYING TO WITHDRAW CE RTAIN EMPLO YE ES OF
TH E POLI CE DEPAR'IM EITT OF THE C l d OF ENGL El'/000 , COLO RADO , FRCM THE
FIRE AND PO LICE PENS ION ASSOCIATION AND ELOCTI NG 00T TO PART I C I PATE
FOR THEM IN /\N Y s rAT EJ,/!DE PENS ION PLAN PURSIJIIITT TO C .R.S .
31-3 0-100 1 e t. seq ., AND , IN LI EU TH EREOF , ESTAB LI SHING A MON EY
PURCHAS E PLA N FOR ALL POLICE OFF ICERS HIRED BY TH E C I TY OF
ENGLEl'iOOO ON OR AFTER APRI L 8 , 1S7 8 ; AND APPROVING A CC>m'RACT
BE'JWEEN rnE CI TY OF ENGLEJ.o/OOD AND '!'HE ENGL EJ.o/000 POLIC"'. ASSOCI AT IO N
RE-ENF ~llC ING THE MON EY PURCHAS E Pl.JIN AS A NO N-NEOOT IABLE SUBJcx:'r OF
COLLOC'I' I VE 13ARGA INI NG , AND DECLARING AN EMERGEi'C Y.
WH ER EAS , the City of Eng lewood , Co lorado , ha s p r e v i ousl y
joined a nd been a member o f the Fi re a nd Po l i c e Aen s i o n
As soc ia tion , 720 S'ou t h Colora do Bou leva r d , SU i t e 800 , De nver ,
Col orado 802 22 (her e inaf t e r "FPPA"); and
WHEREAS , t he City of Englewood des i res a nd her eby e l ect s t o
estrtbl i s h a mone y pur chase pl a n i n l 1e u o f any statewide pens i o n
p l a n pur suant to C.R .S . 31-30 -1001 e t seq. fo r a ll pol ice officer s
hired on or a fte r Apr i l 8 , 1978 ; a ~
WHER EAS , t he Ci ty ,,f Eng lewood p r ev i ously passed its
reso lut ion of i nte nt to wi th.:lr aw f ran t he Fi re and Pol ice Pe nsion
Assoc i ation , pur sua n t to C .R.S. 31-30 -100 1 (2) (b) and pur s ua nt t o
FPPA rul es ; and
WHEl ll~S , the Ci t y of Englewood has c a npl i e<l wi th a ll
peel inent provi s ions o f the Colorado Revised Statutes re l a ting
thereto ; and
WHEREAS , the Ci ty of Englewood has conpl i ed with a ll
pe r tinen t prov i s i o n s of the Hane Rule 01a r ter and the Englewo od
Mun ir.ipal Code ; and
\~I F.REAS , this ordinan ce has been submitted to the FPPA; and
WHERl::AS , the Ci ty of Englewood and the affected police
officers and the Englewood Poli .e As soc iat ion have expressly agreed
that establist-cnent of and participation in a money purchase plan ,
arw:1 any pa rt or manne r of pa rtic i pation therein , i s a
non-negotiable subject in collective barga ining, and the affected
police officers and the Englewood Police Association have agreed
that such non-negotia ble s t a tus is provide:l by their contractual
agreement even to the extent, if any , not provided by the Hane Ru le
Char ter of the City of Englewood , and they have requested that <.did
non -negotiable status be affirme:l and enbodied by contrar.t and
addit ionally by the terms of this ordinance; and
WHEREAS , the City Attorney of the City of Englewood has
certifi ed by letter to the FPPI\ that he has r ev i ewed the proposed
money pu r chase plan and finds it to be in canplia nc e with
applicable state law; and
WHEREAS , the FPPI\ ilas informal the City of Englewood , the
Englewood Police Association and the affecte:l police officers that
the e l ection could proceed ; and
WHEREAS , a pre -election mee ting was canpleted with a
representative o[ E'PPA, the Englewoo-l Police As soc i ation, t he
affected pol ice officers and the Ci tf of Englewood by a representa -
ti ve of In ternational City Manag e rs ' Associa tion fvbney Purchase
Plan ; aOO
WHEREAS , full disclosure statement r e lating to and canparing
and contrasting t.'ie FPPA pension pla n with the proposed money
purchase plan has or will be fl le:l with the FPPI\ no late r than
September 1, 1985, pursuant to a pplicable FPPA rules , and said
s ta tement has been approved by the FPPA; and
WHERl::AS , a copy of. the disclosure statement has been reviewed
ar,J found wholly satisfactory by the Englewood Police Asso ciat ion
anu the affected police officers, and copies have been hand -
del i veted or mailed to each newly hired and affected police
offi cer; and
WHEREAS , tne Englewood Police Association , the affecte,l
police officers , any a nd a'· police off icers of the City 0f
Engle wood .ere informed tha , the election was t o be October 15
through 17 , 19 85 , and each ne wl y hired and affected police officer
was informed of the e l ection all.l its dates , and all such notice wa s
a minimllll of ten days pr ior thereto ; al"k.i
WHEREAS , the City of Engl"!wood , the Englewow Police
Association and the a ffected poli c e officers .ere informed that
they , or any of then , could request and receive a public meeting
with a n FPPA r e p resenta t ive to discuss the propo sed money purcha se
pla n a oo the FPPA pens ion plan , a oo said P'Jb lic rreeti ng , i f
r equested , was cooo ucted mor e tha n ten d ays prior to the e l ection;
aoo
WHE RE'.AS , t he election was cond ucted on October 15 t h r ough 17 ,
1985 ; and
WHERE'.AS , a t least s i xty-five percent (65 %) of the affected
manbers of t he Englewood Po l ice As socia t i on aoo Englewood Pol ice
Department a pproved the estab li shme nt of the proposed money
pu r ,:hase pl a n at election ; and
WHERE'.AS , e nac tment of this ordinance wil l be for the benefit
of anpl oyees and will pr ovide fu nd s fo r t heir r etiranen t and funds
fo r thei r beneficiaries in t he event o f death ; and
l'0-1 , TH EREFORE , BE IT ORDA IN ED BY THE CITY COU OC LL OF THE
cr•ry OF ENQ.E"'100D , COLORADO , AS FOLLCA-1S :
Sect i on 1. '!he City Co un cil he reby fi nd s and approves as
facts the prov i sions of t he 11 Wii ERF.AS " c l auses he rein set forth .
Section 2 . '!he City of Englewood here by withdraws anpl oyees
fo r theEnglewood Police Department hired by t he City o f Englewood
on or after Apri l 8 , 1978 fran the Fi r e and Pol ice Pens i on
As s ocia t i on, s aid wi t hd r awa l t o be effecti ve as of Decanber 31 ,
1985 .
Sect i on 3 . '!he City of Englewood he reb y e l ects a s of
Decanbe r 31, 198 5 not to pa rticipat<a for anployees of the Englewood
Po lice Depar bnent hired by the City o( Englewcod on or after April
8 , 1978 in a ny statewi de pe nsion plan pursua nt t o C.R.S . 31-30-1 00 1
~~-
Sect i on 4. '!h e City of Enc:lewood he reby agrees to enter in to
the ICMA Ret i renent Co r po r atio,1 Prototype M:lncy Pu r chase Plan and
Trus t Adopt ion Ag r eanent (he r einafter "Plan and Trust "), attached
he r eto as Exhibit A, and author i zes execuL ion by the Mayor and
attesta tion by the City Clerk , "'1 i ch agreanent is to be effective
as of January 1 , 1986 .
Section 5. '!he City of Eng l ewcod hereby e s tabl i shes a money
purc hase plan in the form of t he 1O1A Reciranent Cocporation
Pr oto type M:ln e y Purd1ase Pl a n a nd Tr ust attached as Exhibit B,
whi ch Pl an and Trust is to be eHective a s o f Janua ry 1, 19 86 .
Section 6. Participat ion in the Pl an a rd Trust shall on l y be
by uniformed , sworn , police officer enployees of the Englewood
Polic e Depa rbnent h ired by the City of Englewood on or afte r Apri l
8 , 1978 .
Section 7. '11le Plan ard Trust i s established ard shall be
maintained for the exclusive benef it of e ligible enployees ard
th ei r beneficiaries ,
Section 8 . '11le terms of thf' Pl a n ard Trust , the
est abl~f a nd participation in a mone y purchase plan , ard
any part or ma nne r of part icipa t ion therein a r e non -negot i a ble
subjects in collective ba rg aini ng .
Section 9 . '11le Ci ty of Englewood he re by agrees to enter into
a contract w1 t h the Englewood Police As sociation in wh ich the
parties reaf f irm by legally b irding agreeme nt that t he t e rms of the
Pl a n and Trust , the establishment of ard participation i n sa i d
money purchase pla n , and a ny part or ma nne r of pa rticipati on
the r e in , a r e non negotiable subj ects in collect i ve bargai ning . A
copy of said contract i s attached hereto as Exh i bit c , ard the
Mayor is hereby a uthor i ,a to execute ard the City Clerk to attest
the same .
Section 10 . '11le anployer a nd aTiployee contributions to the
Plan and 1'rust shall be absolute ly limited as fo llows , any
prov is ion in any pertinent agreenent notwi thstard ing:
Empl oyer contri butions --e i ght pe r cent (8%)
Empl oyee c ontr i butions --eight percent (8%)
Section 11 . '11le Depa r tme nt of finance of the City of
Elig le~thorizecl to rece i ve Eron the fPPA as soon a s
possible after DecaTi ber 31 , 1985 , but in no even t more than si x
months Eron the eff ec ti ve da t e of c ustody , t ogether with the ne t
earnings o f such funds , def ined as ac tual e arnings , l ess actual
admi n i strat ive ex penses a rd expens e s connec ted with the withd r awal.
Sect ion 12 . '11le r efurded mone ys at set forth in the pr ev ious
Section shall be used as cont ibutions to the Plan a nd Trust .
Section 13 . Upon t he effecti ve date of withdrawal Eran fPPA ,
the Cityof!hglewood sha ll be l iabl e for t he payment of a ll
benefits the n ves ted und e r the prov i sions of C.R.S. 31-30-1006 .
Section 14 . 'Ih e provisions of t i1i s o rd inance shall hav e no
effect upon po7:1ce off icers h ired prior t o April 8 , 1978 , and sa id
police dficer s shall rBTiai n with Englewood Po l ice Officers '
Pens i on i-!an .
I
section 15. 'l11e City council sha ll hold a publ ic hearing on
t hi s Ordinance , before f inal passay e , at 7 :30 p.m. on Decenber 2 ,
19 85 in City council Chambers, 3400 S. Elati , Englewood , COlorado
80110 , at whi ch time the public arxl a ny affected person may state
his or her views arxl position rela ting ther eto. At said public
hear i ng , the cOOll\unicati oM arxl posi t ion of arxl agreenents between
the City arxl Englewood Police Association, arxl the legal opinion of
the Ci ty Atto rney shall be d uly incorporated into the record .
section 16 . 'l11e Director of Fi nance, ex officio City Clerk-
Tr easurer, o f the Ci ty of Englewood , COlotad o, i s hereby directed
to fo r thwi th f i le a c ertified copy of this Ordinance with the Fire
an:l Poli ce Pens i on As sociation, 720 Sou th Col orado Boulevard , Suite
800 , Denve r, COlo r ad o 80222.
section 17 . City council hereby firxls , determi nes arxl
declares t hat t his Ordi nance is necessary for the inmediate
preser vation of the public peace , health , safety arxl ..elfar e in
that i t has to be enacted and in effect prior t o January 1, 198 6 .
Introduced , read i n full , and passed on first r eading on the
18th day o f NOvenber , 1985 .
Published as a Bill fo r an Ordinance on the 20 t h day of
Novenber , 1985 .
Read by title and passed on final reading as a n energency
ordi nance on the 2nd day of Decenbe r , 1985 .
Published by title as Ord inance No. J: 1=• Series of 1985 , on
the 4th day of Decenoer , 1985 .
ss-/' ?~pa a~ · e L . 'otis , Mayor
1 , Glry R. Higbee , ex officio Ci ty Clerk-Treas ur e r o f the
City of Engl ewood , COlorado , her e by certify that the above and
foregoing is a t rue arxl conpl ete copy of the Ordinance P.9ssed on
final reading and published by title as Ordinance No . ;f._5-, Series
of 19 85 .
JCJ\1A
REflREl\
OORPORATIO ..
PROTOTYPE MONEY PURCHASE PLAN & TRUST
ADOPTION AGREEMENT
The Employer hereby establishes a Money Purchu1 Plan & Trust to be known u t
City of F.nqlewood Police Pension Pl;.,, (The "Plan") In the form of lhe ICMA Rltlr nt '
<N"'-ofplan)
Corporation Prototype Money Purchase f'la~ and Trust . ·
This Plan Is an amendment and restatement of an existing defin&d contribution pension plan. D Yes I!! No
If yes , please specify the name of the defined contribution pension plan which thla Plan hereby amends and
restates :------~-----------------------------
A. EMPLOYER : Ci ty of F.r,glewood
B. THE EFFECTIVE D ATE of the Plan shall be the first
da y of th e Plan Ye ar during wh ic h the Employer adopts
th~ Plan , unless an alternate Effective Date is hereby
specified J a n uAry l, _1_9_6_6 ______ _
C . THE PLA N YEA9 shall be 11e cale nda r year , unless
s n alte rn ate Pl an Year is h ?reby s pecified :
0 . ELIGI BILI TY R EQUIREMENTS
1. The following group or groups of Employees are
el igible tor part,cipat,on in the Plan :
--All Employee~
__ Al l Full -time Employees
__ Salaried Employees
__ Non-union Employees
__ Management Employees
__ Public Sa fety Employees
__ Gene ral Empl oyees
__ Othe r (specify below)
r,1) p a );c e offi r-crsb i re d after
Ao r il 7 1 1 97 8
2 . The Employe r he reby waives the requiremenl of a
six -month pe riod of service fo r part ici pants
c; Ye s Kl No
11 t h•s ¥1-·arve r i!i e lecl ed , ii sh all a pply to ell
employe e~ y.1\hr n t he Co v e re d Employ ment
Cl as~1 !1c at 1cm
3 A m m1m u m a91• requirPme nt I!, he 1e by 6pec 1lied for
el1 a 1~i1 :1y to p art1:1 p r11t 1 hc m inimum agp req uire
me"n1 ,~ :>l (not l o e xcee d a ge 24'h )
W11 a• N '/. 11 nn m 1n 1m um a gr is decla red
•· Normal Retirement Age shall be _;:.55:;_ __ _
If a d ifferent Normal Retirement Age Is established
tor one or more groups ot employees , please
specify :
Age Group
E. CONTRIBUTION PROVISIONS
1. The Employer shall contribute on behalf ct each
Particlp•nl 8 % ct Earning , tor the
Pl an Year (•ub)ect to the limttation• ot Section 4 .09
of the Plan).
2 . ") Each Participant Is required to contribute __
__ .a___% of Earnings for the Plan Vear es a
condition of participat ion . (Wr ite "O" tt no contri bu ·
lion is requ ired .)
b) The Employe, he reby ele c1s to "p ie • u p" 1•10
MandatoryfRequired Part ic ip ant Cont ribution I
I.':, Ye s u
3 . E&ch Part icipa nt may ma '<e a Vol unt ary Pa n,c1r
Contribu1io n as deltne d ir-Section 2 .34 o! the F-
s ub ject to t ~e hmitat•on s of Secti on , 04 an d t. .
of the Pla n . ~: Ye f [. N :,
Ea:h Pa n1c ipan1 may ma i E: a Oe juct1M, Emr 'ri ,t·'
Co n1r1bu1ion es de11ned in Sec tion 2 O& o1 thr-Pw·
t;u biec t 10 the l1mita1 ions cl Secti on 4 .0 5 ol the P11,~
p: \'e, : : 1;
EXH IB IT A
5 . Emplo yer contributions and Employee 00ntrlbL>-
tI o ns , ii any , 1hall be contributed to the Truat in ac-
cordance wilt, the following peymont achedule :
Per me t ·, ----------
Earnings , wh ich fonn the basis tor computing Employ-
e r con lribut ions and Employee contributions , H ,.
~uired , ere defined as the Participant's base aalL ,-or
es, before applying any salary reduction agreed
1, : t th e Part icipant pursuant tu a plan described In
Sec 1,ons 457 or ◄03 (b) of the Code, plus the following
(ch eck wh ic hever Is applicable , H any):
0 Overtime
0 Bon uses
C' Employer contributions (other than salary roduc-
t,on amounts) under Sect i~n 457 of the Code
Other eX1r aord inary remuneration
G VEST ING PROVISION S
T he Employer here by spec fies the following ve sting
s che dule , subjec1 t o , ) the minimum ves ti ng requ ire -
m e nts as noted an 1 2) the concurrence of th e Plan
Adm1 nIstr ator.
Ye ars of Spec ified M inimum
Se rvi ce Perct,nl Vesting
C ompleted Vesting Requ ir ements••
Ze ro __JL_'M, No mini mum
O ne _a_% No minimum
Two _Jl.___% No mini mum
Three _Q_% No minimum
Fo ur ~% Not la ss than 40%
F,ve _0_'11, Ne~ le ss than 45%
S ix o r Mor e _2Q_% Not less than 50%
Seven or more ~% N o, le ss than 60%
E1 gti1 or more ~% Not le ss t han 70 %
N 1•1,: or m:,re _fil._% Nol fe ss t ha n 80%
Te-n o !" mo re lJ..L % Nol less th an 90%
f;K,\·t X)()t)'JW'1"X XX X~l)DX>ll\,':XX UJ411l\Xl(H>l>IW'I~
(' 'lh1:st m inim um vesllng requi,emen ts conform to
t hr: IHS s Four-r-on)· Sch~d ul?, w hich 1s 1he mo st re •
s11 1c t1 ve schedul e f rir wh ich en advance determ ma llo n
ruling for quahl1 cn i10n wil l be issued by th e IRS v.•I 1hout
e p re •te~1 tor nond 1scumm ahon)
-I . INVESTMENT OPTION (check one)
Tho following applies to Employer Contribution, and
Mandatory EmployH Contrtb Iona , Alf Voluntary
Employee Contrtbutiona and 0..ductlble Employee
Contrtbutlon1 (DEC1) are not aubject to 1n,u111111nt
rntrictiona.
D A Participant may d irect h lllher ln119stmont only In
an lnvoatmont option which provides a guarantee
of prtnclpaf.
D A Participant may d irect his/her Investment of not
more than 'Iii In an fnvestmoril option
which does not provide any guarantee of principal.
tlll A Participant may d irect hlslh-w Investment, with-
out restriction, among various Investment options
avaflable under t~• Trust.
D Specify any other lnvostmenl rest rictions :
I . WITttDRAWAL UPON SEPARATION
1. Upon separat io n from service fo r reas on other tha n
death, Disability o r attainment of Normal Retirement
Age , the Pertlc ipanl may elect to commence rece iv-
ing benefits from the following accounts , wil ho ut
regard to age :
a) Employe r Contributi on Account (No nlortellable In-
terest) [ll Yes D No
b) Partic ipant Contribution ~--.aunt (if applicable)
~ Ye s D N o
c) Portable Benefit• Accounl Ci! Yes D No
2. If "no" to any ot the above , the earliest age Is
___ , al which the Emp loy e r v.·i ll a llo w a d is-
tribut ion from the Employe-r Con tr i but io1 A ccount ,
th e Portable Ben efits Ac counl. end /o r !he Part 1c1-
pa nt Contri but ion Acco unt. if applt cable
3 . No1 withstand 1ng Section 1(2) ab::>ve . 2 d 1s1 r1bu 11011
shall be made pu rsu an l to Sec1 1o'i 8 0 5 of the Pieri .
De M in imis Accounts. F urt her, the. Pii 1 iciparu sha 1r
be ent itled to ma~e a rol1C'\ve r c 011 !rio ..1 :1on p :.ir su a·11
to Se cl 1or B.0 3 ol the Pia,,
J . Loans are pe n "'illed undr · l he Plan a ~ p•ov1dE'J ,•1
Art ic le XI t· Ye s : N1,
K . The Employe: hereby attem thet H la• unit ol atete
or local governm ent or an agency or IMtrum•ntalily
ol one or more unhs of state or local govemment and
that H hu th e authority under at•~• Md local law, .o
adopt • llloMy Purchue Plan.
L. TIie Employer hereby appoint, 1h11 1c1111, Ret irelt
Corporation u the Plan Admlnl,trator pu•ouant t e
terms and condttlona of Iha ICIIIA Pf\OTO -
MONEY PURCHASE PLAN & TRUST.
The 1,mployer hereby agrHa to Iha p,oylalona 0 1
Plan and Trust . -
In Wrt nes.s Whereof, the Employer hereby causes this Agreement to be executed on 1h11
__________ day of _______ 18 ____ _
EMPLOYER Accepted: ICMA RETIREMENT CORPORATION
By: _______________ _ By: _______________ _
Trt le : _______________ _ Tille: _______________ _
Atte st: Attest : _______________ _
4 /84
I
ADDENDUM TO '.l!E CITY OF DlGLD<l'OOD
ro:.1c1 : PENSION Pl.\N
(IOIA MONL"i PURCl!ASE PLAN)
Beginning balances of each errployee's account will be determinecl as
follows:
Meanings:
FPPA -the State wide plan aaninisterecS by the Fire and Police
Pension Association established in CRS 31-30-1001, !:I' SEQ,
Mand a tory Participant Contribution Account -shall be in reference
to the amount contributed to the FPPA plan by each errployee.
fht)loyee Contribution Account -shall irean the account established
for each employee contribution wi thin the IOIA plan.
Dnployer Contribution Account -shall rrean the errp loyer contribution
account established within the IOIA plan for each e,ployee as a
result of employer contribution.
The mandat ory participant contributi on account shall be credited to the
employee contribution account with an a:rount equal to the total mrount of
contributi on s paid by t he em p loyee to the FPPA, up through December 31,
19 85 .
An amount equa l to the total contributions in the mandatory participant
contribution account sha ll be credited to the employer contribution
account.
Any excess amounts refunded to the plan by the FPPA which are not
allocated in the above iranner sha ll be allocate:! as follows:
Fi fty percent of all interest earnings shall be divided a,rong all
empl oyee contribution accounts based upon each eJl)loyees ratio of
contributions to the total iraooatory participant contributions made
through Dec:enber 31, 1985. An am:,unt e,ua l to the interest earnings
d iv ided among all enployee contribution a ccounts shall be credited to
thl! employer contribution account. _,,..
lnact i ve police empl oyee (employer contri b uti ons) and forfeited
funds shall be creci ted to:
a . the Ci ty ma y us e the excess funds to pay for any and all
st artup c osts assoc i ated ~·i th the !CMA police money purchase
pl a n .
b . any mo nies ren.:i ininq s ha ll bC' credi ted t o the Cng l e wood
Po l ice olC t,i re· pt?nS io;i f und f or the p...irpo ~es of reducing the
pen sion pl an unfundE-0 liot i l ity.
POI I CE PLW OOCUMI:NT
-------ICMA Rernemenl Corpora11on
1'able of Content•
ICMA Retireir.ent Corporation
Prototype Money Purch••• Plan and Truat
Title
PURPOSE
II DEFINITIONS
2 . 0 1 Accounting Cate
2 . 02 Adopt.ion Agruement
2 .03 Beneficiary
2.04 Break In Service
2.05 Code
2.06 Compensation
2.07 Covere d £mpit.,yr.lE!nt Classification
2 .08 Deductible tmployee CC'ntribution AccC'unt
2.09 Disability
2.10 Earn ings
Effect ive Date
£:npl C'lyee
Er.i ploye r
1:.mp loyer Cl,n tribution Account
Limi t atic,n Yea r
2 . JI
2. l 2
2 . I J
2.14
2.15
2. 16
2.17
2. l B
2.19
2.20
2. 21
2. 22
2. 2J
2. 24
2 . 25
2 . 26
2. 21
2. 2B
2. 29
2. JO
2. JI
Nt,nf o rf ei table I n terest 2
No r ma l Retirement Age
1-'art ic ipant
p,,rt lC ipant CC1ntribution Account
r art1c ipant Lo an Account
Period of Separation
Period of Serv ice
Period of Severance
Plan
P i an Admin istra tor
P l .ain Year
Po rtab l e Benef its Account
PrC'ltotype Plan
Qua lified Beneficiary
Qualified Joint and Survivor Annuity
Re-employed I ndi vidual
2 . 3 2 Suspense Ac count
2.3) Tru st.
2. 34 VC'lluntary Con tribution Account
I l l PA RTICIPATION
3 .0 1 Ser v i ce
J. 0 2
J .OJ
Aqo
Re-employed I nd 1v 1dual
EXHIBIT B
4
4
4
4
4
4
I
·--------------ICMA Retiremen1 Corporallor ,
IV
4.01
4 .02
4.0)
4.04
4.05
4.06
4 .07
4 .08
4.0?
4.JO
4 .11
4 .12
4 .ll
4.14
4. JS
V
5 .01
5.02
5.0)
5 .04
5.05
5.06
5. 07
VI
6.01
6.02
6.0)
6.04
6 .05
6.06
6.07
VII
7 .01
7.02
Vlll
8.01
8.02
8.0)
8.04
&.05
8.06
8 .07
COfl lRI BUT JON S
employer Ccm tributions
rorfe i turer.
HandatC'ry P1rticip1nt Con t ribution•
Volunta ry Participant Contribution•
Deductible Employee (ontributiona
Payment Clf Participant Contribution ■
Ch ang e& in Voluntary Contribution ■
Pc-rtability of B ene fit ■
Lir:t ita ti,:,n on Annual Addition
1',nnual Addit.iCln
s
5
5
5
5
6
6
6
7
7
Elimi nat ion of ExC'e £s Annual Addition s 7
Short Limi t a t.io n Year 8
Pa rt icipant in Other Defined CC'ntribution Plan, 8
Par:ic1pa nt in Defined Benefit Plan 8
Definitions f C'r sections 4.13 and 4.14 B
TRU ST l\llD IHVESTMENT OF ACCOUNTS 9
Tru6 t 9
I nvestment Powers 10
Taxes an ci Expen s es 12
Payment of Benefits 13
I nvestment Fund!. 13
Valuation of Ac count\.., 13
Pa rticipa nt Lot11n Accounts 13
VESTING 1)
v est.1ng schedule 13
s e rvice After Bre ok In Service l l
Prior service of Re -employed Individual 13
Upon Normal Retirement Age 14
Upo n Deoth or Di s ob!lity 14
Forfeitures 14
Reinsta teme n t of Forfeiture& 14
BE NEFITS CLAIM 14
Claim of Benefits 14
Appeal Procedure 14
COM.~ENCI:P.ENT OF BENEFITS l ~
Normal Commencemen t of Benefits J !,
El ec tive cc:,mrnenct~ment of Bene{ its l S
Rc:,l lc:,v e r to An C\the r Pl a n 1 S
t..atest C("lmmencPment of Benefits 1 5
o~ M1ni mif-Acc ou nts 1 6
W1t.hdrawlll o f v o l u n tary Cont.ributions 16
\.i 1thdrawal of D<>duc:t.ib le tmployee ContributiC\nS 1 6
-~------------------ICMA Retirement Corporallon •
IX
9.01
9.02
9.03
9 .04
X
10.01
10.02
10.03
10 .04
10 .os
XI
11.01
11.0 2
11.Cl
XII
1 2 .01
1 4 .02
1 2 .0 3
1 2.04
1 2.o s
1 2.06
XIII
13 .01
13 .02
13 .03
13 .04
13.0S
13 .06
XIV
14.01
14 .02
14.03
14 .04
14 .0S
14 .06
14. 07
14 .0 B
1 4 . 0 9
1 4 .10
14 . I l
DEATH BEN ErI Tb
Pre-re tirement Death Benefit•
Pos t-retire ment Death Benefits
Qual i fied Ben e ficia ry
Surv i ving Spouse
MODES or DISTRIBUTION or BENEFITS
Normal Mode of Diotribution
Elective MC'cie ot 0 i&tribution
Qua ii f i e d ..J o int and Sur v ivor Annuity Contract
El ect i on of Mo de
Limita t i on on Par t icipa nt
LO ANS TO PhRTICI PA NTS
J\va ilab ility o f LOans to Participcnts
Terms a n d Condi t.ions of Loans to Par t icipant&
Par t i cip n t. Lo a n Accounts
PLhN AMEl>DMEN T • TE IS.M INATION AN D OPTION AL PP.OVISIDNS
Am e ndme:n t b y Emp l o ye r
Am e nd me n t t o vest ing Sc ne dule
Te r r.ii n a tion b y Emp l o ye r
Discon t inua nce of Cont ri b ut ion s
A.m encirr,ent b y J C~~ Ret ireme nt Corpo ra tio n
Optiona l Pr o vis i o n s
AO MINI ST RAT I O!l
Powers o f the Employe r
Duties of the P l a n Ad minis trator
Pi:otectio n of t he Em ploye r
Prot ection of P la n Admi ni s t rator
Res i gn a t ion o r Re mova l o f Pla n Ad mini strator
No Te r mina tion Pe na l ty
MISCELLA NEOUS
Nc ng uar a nt ee of Empl oy me nt
Rig h ts t o Trust. As se ts
No na l ienat i on o f Be n e f i ts
N~nf o rf e ita b il i t y of Bene f i ts
I n compen t~nc y of Paye e
l nat:i l i t>' t o Locate Payee
Me r g e r s , C~ns ol 1d a t 1ons , and T ra n sf e r o f Assets
Emr.,lc,y er Rec o rd !.
ComrTH,n l y Contr ol l~d Empl oyers
Ge nd~r a nd Num~cr
Ap:!:c a b l t: Ls,,_,
16
16
16
17
17
17
17
18
18
19
19
1 9
19
20
2 1
22
22
2 2
2 2
2 2
22
2;
2 3
23
2 3
2 4
24
2~
2 4
24
24
24
25
2,
25
26
26
26
26
26
26
I
I
I. PURPOSE
ICMA Relircment Corporation -
ICM/\ RETI REHENT CORPORATIO N
PROTOTYPE HONEY PUR CHASE FUIN AND TRUST
The Employer hereby adoptg thi• Plan and Trust t o provide fund&. for ita
Employee•• retirement, and to provide fund1 for the r Beneficiariea in
the event of death. The ben~fit& provided in this f.an ahall be paid
frcim t he Trui.t. The Plan and the Trust forming a part hereof are
ad opted and &hall be maint.ained for the exclusive benefit c,f eligible
Emplc.,yee& and their Be ne f icieriea. Exc~pt a,s provided in Section 12. 03,
no p&rt of the Trust. &h all revert to the Employl!r or be u&ed for or
diver ted t o rurposes otht>r than the exclusive benefit of Employees and
their Beneficiaries.
II. DEFINITIONS
2.01 Acco unting Date. The las t wo rking day of each calendar month.
2 .0 2 Adoption Agreeme nt . 11 resol ution of the governing b o d y of the
Employer which ado pts the Prototy pe Plon end elects a mo ng the
variou s a lternatives provided thereunder. anci ,.1h i ch upo n
eKecut1on by t.he Err.ployer a nd a ccepta nce b y the IC/1.A Re tiremen t
Corporation become s a n integr a l part of t.he Plan.
2.0 3 Be n ef i c iary . The pe r s c,n or persons designated b y the Pa rticipar.t
who 6 hall recei v e any benefits payable here unde r in t he e vent o f
t.he Part ic ipant I s d eath. The designatiC'n <'f s uch Beneficiary
shall b e i n .... ·riting t o t h e Plan Adm ini strator .
2.04 Bre ak I n Service . A twe l ve (12) c onsecut ive ino nth Peri od of
Seve rance .
2.05 Code. The Inte rnal Revenue Code of 1954, as amended from time to
tiine.
2. 06 Compensation. Wages end other compensa tion paid or made
available to an Employee, either before or after he /she be comes a
Participant , for personal &e rvices rendered in the c our se of
employment ••1th the Employer, tha t the Employe r is r eq u ired to
report f or fede ral income ta x p urposes on lnt.erna j. Revenue
Service Fo r m W-2. or any subst itute successo r f o r r.i.
2.0 7 Covered Emp loy ment Cla ssi ficati on. Th e gr o up o r gn,ups of
t mi:,loye es e ligible t o p a r t i cipate in the Pl an a s specified in t he
Em p loyer• s AdoptlC'n Agreement.
2.08 Deductible tm p lC'ye e Co n tr ibutiC'n Account . A separate Participant
ac count ...,hi ch c f'nta lns v ci luntar-y c ontribJ t i o ns which are i nten ded
t u b e d e du c ti b le u nd~r Se c tiC'n 2191 a ) of the Code . Such a cc ou nt
sh al l a ls0 inc lude any r ealized a nd u n r e a lized ge.i ns a nd l os!:i e f.
a l loca ble t o l!.u ch c o n t r1b ut H •ns , l e!>s a n y a mc,u nts d istri bu t ed t o
t he Pa rt1 c1pant c,r h 1 s/he r Bnwfici ar-y f rom s uch a c c ount.
____________________ ICMA Rel11cme n1 Corpo raticn -
2 ,09 Di••bility . 1) Occu p otic,nal Diubility meana £ 1 i&o bility -•
~ c....-e r eli ulting in o n incapac i t y to pr,rf C\rm a Lsi g ned d ut ie ,
e nd expected , wi t h reasonable medical proba b ility, to exi•t fur
at le .. t one year. 2) Total Dhobility mean, inability tc
e ngage in any &ub!i.tantial gainful •ctivity by rea,on Clf any
me dic ally dete r.-minable physical or mental i mpairme nt whlch can tie I
expected to res ult in death or which ha ■ lasted or can be
e xpe cted to last for • pericid not 1••• than twelve (12) anonth s. ,
'rhe Bo a r d of Directors of the Fire and Po lice PensiC'ln As&ociation ~
o f Co lorado has the aole powe r to determine eligibility for
r et ireme nt ~v ~ Di s 111b i l i ty , whether Total or OCcupationo l , for any
Par ticipant '., the Plan.
2 .10 Ea r ni n gs . The b a s e s alary o r wages, plus other items elected by
the Emp l o yer i n the Ad option Agreement. paid or ma de available
b y f.ht Em plc.,y er to a Participant for personal serv ice& rende red
i n the cour 6e o f e mp l oyme nt with the Employer . Earn i ng s s · .tll be
d etermined be f o re a ppl ying ony &alary reduct i on ogre e d to by the
Participa n t pu r s uant to a pli!l n desc r i bed in Sections 457 or
403(bl c f the c o de .
2.11 Effec tive Date . The fir st di!ly ot the Plan Year d u ri ng wh ich t h e
Err,p loyer a do pt& t he P l a n, unles s the Emp l oyer elec ts in t he
)\dopt.i on Agre e ment a n a l t e rnate da te aS the Effe c tiv e Da te of the
P l a n .
2.1 2
2 .13
2.14
2.15
2.1 6
Employe e . An y indiv i d ua l who pe rf o r ms se r vi c e s f o r the Employe r,
excl u ding i ndef,e nden-:. c o ntract ors .
t mp l oye r. The u nit of &t a te o r loca l g o vernmen t o r a n agency e r
in s trume ntality of o ne or mo re states or loca l g overnme nts whi c·h
executes the Ado p t i on Ag re eme nt .
Emp l o ~e r Contri b ut ion A.c count. A s epara t e acc o\1 nt ma inta ine d for
a Pa r tic ipant cons i sti ng o f hi &/her a l l ocabl e s h are o f Emp loye r
contributions ... .:i ea rni ngs of the Tru st. p lan for f e i tures a n d
reel ize d and u n realized gain s and losses alloc able to s uc h
account, l ess any am o unts d istributed t o t he Pe rt i C'ipant e r
hi,/he r Be nefic i a r y fr om &u c h acccunt .
Limitation Ye a r . Th e Limita tion Year is the 1 2-con sec u t i ve mo nth
pe ri o d for which Compe n s a tion i s c a lcul4t ed for p urpose 0 t
d eterrr.1 n1 ng t he c ont ri bution l1.m1tat1on s unde r Sec t1 C1n 4 09 or I
t he Plan. The Limitat i o n Year &hall be the Plan Year.
No n f orfe itabl~ Intere s t. The int e r est of t he Pa r t ic i p ant Clr
h i !./her Bene fic i ar y (....,•h ic hever is a ppl i c a bl 2) in t ha t pe r::e n tage
c f his/her Empl oyer Con tri but i on Acc o unt be lance which h llS ve s t ed
pursu a nt t o hrticle Vl. A Part icipa n t &he .l l , a t a ll time , ha·,e a
Nonfc,rfe ita ble J n te r es t i n h i s/her entire Participa n t
Con t ributiC'ln . P0 rta b lt Bf'ne fi t s , Vo l untar y Con tributi c,n , .rn d
Oed uc t1blt.' tm~l 0y c P Contr1b1..t1on Ac c ountf,.
I
,--------------------ICMA Re!ircmen! Corpora11 on --
the Adopti C'ln 1'q re ~ment.
2.18 Participant. An tmp l<'yeo whu 5 ati s f ier. the requirement, C\f
Article JIJ, who is a member of the covered Employment
Clas&ifieatiC'ln, ind who makea mandatory contribut iona if required
under tho Ad option Agreement.
2.19 Participant Contribution Account. A separ ate account ma intained
for eit!ich Participa nt ccm &istin9 of hia/her mandatory
c,mtributions and e arning & of the Trust and adjustment s for
withdrawals, and r e alize d and unrealized qains and losses
at.trib utable theretC". lf a Participant is required/allowed to
mak'! b o th r:i andatC"ry and VC'luntary contributions, a Voluntary
Contri ~ution Account shall al so be maintained.
2.20 Participant Loan Account. A separ ate investment account
established for the purpose of making and investi ng in loans to
the Pa rticipant. Su c h a cco u nt 6hall include t he am o unts
tran sferred pur s ua nt. to Section 11.OJ(a) of the Plan, p lus
accrued in te r est , less repayments of principal andpa yments of
interest. Any loa n made to a Partic ipa nt sha l l be made only from
suc h a c count.
2 .21 Period of Sepa r a tion. A pe riod o f time commenci ng ...,i th the date
an Employee s«.>parates from se rvice a nd ending \,,'i t h the date such
Empl o yee resumes empl oyment wit.h the Er.iployer.
2.22 Peri od of Service . f o r purposes of de ter mining a n Employee's
in!ial o r c on~i nuej eligibility to p tirticipa te in the Plan or
hi s/her vested interest in his /her Emp loyer Con trib ut ion Account,
a n Employe e s hal l be credited for the t ime period c ommenc ing "-ith
his /her tir&t day of e mployment and ending on the date a Period
of Severance begins . A Period of Servic e for the se p urposes
inc ludes any Perio d of Separation of les s than twelve (1:2)
conse cutive months . Jn the ca se of a n Employee who se pa rates
from service and later resumes employmen'.. with the Employe r. the
Period of Service prior t o his /her re sumption of em p loyment shal l
be Dggregated on ly if such Employee is a Re-employed individua l .
2 .. 23 Period of Severance. A period o f time commencing with t he
e a rlie r of :
(a 1 ":.he date an Em p l o yee 6eparate & fr om service by rea sor, of
quitting. r et1 remen t, death, or di sr.h arge or
(b) the ciat e twelve (12) months after the d ate a n Employ e l.!
sep.arete 1, from s e r v ice, end en ding , in the case of a n
Empll1y ee who s epar a tes from &e rv1.ce by reason other t h a n
dt-att-, wi th the, dat f' suc h Emp h1yee re s um es employrr,en t wit h
t h~ t m~l o rer.
2.2~ P la n . Thls Prot0type J'llan a s m0difi c d a nd d«.>ti,.il e d in t he
AdC'p t i o n h g r et-m~nt .
2.2 ~ Pl6 n hdrr,1nu trn tnr. Tht• l C'MI, ~e t1n .. mt·nt Cor po rati c.-r ,
ICMA Retncrnent Cor ;)oration
2.26 Pla:1 Ye ar. A calend er year, unles!» the Cr.1plt1y~r t!lect& anNher
12-mon th period under the AdC'lpt ion Agreement.
2. 27 Port.able Bene f i t.s Account. A separate Participant account which
conta ins • 11 qualifying rollover distribution• from enottit!r plan,
pursuant to Se ction 4 .08 C'lf the P l an. Such account 6hall be •t
times nonforfeitable by the Participant.
2.28 Prototype Plan. The International City Management Association
Retirement Corpo ration Prototype Honey Purchase Pl an and 'trust.
2 .29 Qualified Beneficiary. Any individual who 1) was a dependent of
the Participant or the Participant's surviving spouse for any two
of the last five taxa ble y e ars. or 2) is a former &p-:>u&e of the
Participant. l f a child• s parents are divorced, and the child is
a dependen t of either or both Cl{ the divorced parents, then the
ch i ld shall b e treated as a dependent of each divor ced parent.
2.30 Qualified Joint and Survivor Annu ity. A nontran sfe rable
guara n teed annuity c on tract purcha s ed by the application of a
part of o r the ent ire interest of the Part ic ipa nt in the Pla n.
that p r ov i d es annuity p a yments to a nd duri ng the life of t he
Partic ipant , and su rv ivo r annuity paym~nts, in a n a m~unt e q ua l tCI
not le !>s than 5 0 percent , no r mo re tha n 100 percent, Clf the
annuity p a yment s 1.,i,y a b le to the Pa rt i c ipa n t d uri ng his/her life,
to and duri n g the li!e o f his /her s urviving eligible spo use , it
a n y, after his /her d eath. An elig i ble spouse shal l be the person
to ~·h orn the Part.ic iptin t. wa ~ mar r ied on the ann u :ty :=t a ring date.
2.31 Re -employed Ind ividual. A person wh o , aft.er h a vi ng se parated
fr o m ~ervice, resumes employment:
2. 32
2. 3 3
Ca) with a n No nforfeitable Interest in his/her .Employer
Con t ri b u t i o n Account , or
{b) with no such No n forfeit able Interest, a nd who resumes such
e mpl o yment either (i) befor e a Bre a k In Se rvice o r (ii)
af ter a Bre ak In Service but before hi s/h e r laste&t Period
of Severance equals or exce eds hi s/he r Per ic-:i o f Se rvice.
Su spe n s Accc,ur.t. An ac count ma in tai ne d e s a par t ~f t he Tr u s t
whi ch contain s a ny e x cess a nnual a ddit i on £. or fC'":'fe i tu res.
Tru s t. The Tru st c reated unde r Article V of the Pl a n whi c h shal)I
c onsist of a ll of t he a ssets o f the Pla n d e rived fr om Em p l oyer
a nd Partic1pan t contr i b u ti ons undE.-r the Pla n , pl u s a ny i nc o me
a ndgai ns t he r e~n . l eb & a ny l os s e s, expenses a nd dist ri bu ti ons t o
Pa rticipants a nd B"n e ficiar i e s.
2 .34 Vo luntary Con tri but 1 C'n Ac c ciun t. A s epar a te Part i cipo n t a c c o u nt
wh ic h c o ntair,~ v o l un t ary c on tri bu u o ns whi ch ere no t d ed uctiblP
und£--r Se-c ti <'n 2 19 1.!II l'f the I n te r n a l Rev enue Cod e . Suc h a cc o u n t
&h a JJ a lu., includt-,n y re a l ize d a nd u n r e a l i zE'd g a i ns a nd l o !>S t'f.
a l h 1c a t1l t-' u , h u :-t i l .. 'ntri b ut H 1n~. l E't,S a ny a rn n unts d 1 t.t r1buted t n
ICMA Rcln c mcnl Coq ,o ral ion
the P1rticip•nt t'r his/her Be neficiary from such a ccou nt.
Ill PARTICIPATION
3.01 Service. Except •s prtw ide d in Section ■ 3.02 and 3.03 of the
Plan, •n tmployee withing t.he Covered tmpluyrnent Classi0fication
who has comp loted • six (6, mo nth Period of Serv ice shall
participate on the first da·; of the firat calundar quarter after
such service requirement is ••tisfied. The Employer may elect in
the Adoption Agreement to waive the six--month Period of Service.
3.02 Ag e . The Emp loyer may de sign11tc a mini mum age requirement, not
to exct!ed 24 1/2. fC'lr participation. Such age, if any, shall be
d !!!clared in the Ad o ption Agreement.
3.03 Re-emplC"yed Ind ividual. A Re-employed tndivid ulll s hall
participate in the Plan upo n re-employment or the date dt·:sc ribed
in Sections 3.01 end 3.02 of the Plan, whichever is later.
JV CO NTRI BUT lO~S
4.01 Emp lt.-ye r Con t ributions. FC\r ea ch Pla n Year, the F:m ployet will
contr ibute t o the Trust an a mount whi ch is d eterm1ned in
a cc ordance with the Ado ptiC\n Agreement. The Emp loye r I s fu l l
c on tribution for any Plan Year sha ll be d ue and p ai d not later
than thirty (3 0 1 wo rking da ys a fter the cl o~e of the Plan Year.
4.02 Fo rfe itur es. .t.11 a mounts forfeited b y terminate d Partic ipan ts,
pursuant t o Section 6.06 of the Plan, s hall be used to r educe
Employer cont ri b utions f C'l r the follo'lt:ing Plan Ye rl r a nd succeeding
Pla n Yea r s, if ne c ·&s acy.
4.03 Man C.atory P a rti c ipant Contributions. If the Empl o yer so elects
in the Adoption AgrL ·ent , each Partici p ant shal l make
contributions equal t.v the designated percentage of his/he r
Earnings a s a condition of his /her participation in t he Pl an .
Such con t ri b u tions sha ll be accounte d for s epara~ely i n t.he
Participant Contribution Acc ount . Such a ccount shall be at all
times nonforfeitable b y the -Participant.
4 .04 Voluntary Pa rt icipant Contribu tion s . I f the Employer 6 0 eleets
in the Adoption Agreement, a Participant may ma ke \'o lur.tary
contn.bu tions un der t he Plan f o r any Plan Year in any a mou n:. up
to 10 percent of his /her Compe nsation for such Pl a n Ye ar. Such
contri butions &hal 1 be accounted for &ep a rately i1. the Voluntarr
Contribu tion Account . Such account shall be at a ll tir.ies
nC"n f or f e 1ta b l~ by t he Partici p ant. No twith£.ta ndi ng t he
f ore g o ing, no P erticipant 6hal l b e a llowed to make v oluntary
contributi on!'. unde r thi s ?lan is he/&he is coverf>d unde r a no the r
qu al 1f1ed pl a n ma 1nte 1 nb d by the Empl o}er which al l ow!. vo iun tery
cont r1 bu~ion & the r ~under.
4 .05 Deduc ti ble Em plC"yt>e Contribution s. lf t ht> Employer &C" ele c:i:.[i :!.n
the ~d o pt 1on Ag re em e nt, a Pa rtic 1pnnt fflby f o r e a c h yPa r pr1 0 r r 0
t h~ YP.6r t 1t•/5t,•• att.un !. a ac-70 J /2 vC'l)ur,t e r ily c ont r1 liu t e Lo tt ,r
,--------------------ICMA Rel11crnen1 Cor porat ,on
4.06
Tru &t an emou nt nC1t to e>cct!~d tho le&ser C"f hil>/her Compensation
or $2 ,000 (or suc h larger am o unt permitted a& • d e duct iC"'n by the
Code ). Contributions made pursuant to this S~ctiC"n 4.0!, are
intended to b e d e ductible by Participants under Section 219(a) of
the Co de. A contribuiton by a Participant shall be credited to
hi&/her Deductible Employee Contribution Account and amount& 101
credited &hall be 100 percent veated and nonrorfeitable at all
times .
Payrnent of Participant Contribut ion&. Participant contribution&.
"1het.her rr,andatory C"r voluntary. shall be ma de by pay rC1 ll
d e duction and shall be c o ntributed to the Tru&t e s bpecified in
the Ad opt ,.m Agreeme nt.
4.07 Chonges in Vo luntary Contributions . A Par t icipant ma y elect to
change his/her vo luntary contribution rate , provid~d thot only
one &u c h change &hall be allowed durinq any Plan Year. A
Port icipa nt may di&continue voluntary contribu tions at an y t ime.
Once a Partic:ipant has dis c ontinued &uch CC'lntri but.ions , hl?/She
may not resume voluntary c ontribu tions for six ca lend ar month&.
4.08 Po rta bi lity C'lf Be ne fit s . An Employee wi thin t he c overe d
Employme nt Cl a ~s i f icotion , wh e the r or no t he /she has r.6ti sf ied
the minimum age and se rv ice r eq u i r eme nt s of Arti c le Ill, ... ay
tran sfer (roll over) his/her in te rest in a plan qualified unde r
Sections 40 1 (a) or 4 03 (1'!) of the Code to thi s Plan, prc,vided:
(a) The d i s tri bu t.ic,n is Ill on accc,unt of terrr,i n ati o n o r
d i s cvn t 1nua nc e of t he pla n o r (2) t he di s tribution
re p r esen t s a l ump sum dis t ribution which b e comes payable on
acco u n t of the Empl o yee I s sepa rati on fr om s e rvice, d e ath ,
Di sability or after the Employee at t a ins ag e 59 1 /2,
(b) The a mo ·.Jnt di stributed from the plan is trans fe rred to thi s
Plan nc. late r than U l t" 6 0 th day 111fter di stribution wa s made
t com t he plan,
(cl Th e distribution constituted thE! Em p l o ye e ' o entire interest
in the pl an a nd was distribute d with in one taxable year to
the E:mployee,
(d ) Th e a mou :1t tr a n sf erred to t his Pltn d o e s n o t inc lud e a ny
a mo un t s c o n t ri buted by the Emplc,y ee to t he plan , a n d
(e) Th e Em p loye e wa& not an Own e :-Emp lci ye e u nd e r s u c h pla n
wit t-,in t he me an ing o f Se c t i on 40 l(a ) (l) o! t he Code .
Such tra n&f e r (r 0ll over) mc,y a lso b e thr oug h a n Ind i v id u a l
Reti r em er.t Pla n q uaj i fi~d und ".!r Section 408 of t he In te r n a l
Reve nue Cc.•dc .~re• the Ind i vidua l Re tireme n t Pla n ...,,H, u~e d a s a
condu i t '; · --r p lan bn d the tran s f er i s made i n
a L-. . t-wit h t h£-r ul e b p t c-,v id e d a t (a ) thrt"u gh (e ) 0! t hi 5
para gr a ph a nd thE tra ns fer d tie b not inc ludt-a ny pe r t.o nal
c on t t i b u t1 or,!, <'r ebrr11nys there on t he Par t i c 1 pb 1t ma y ll1.1ve mad e
t o t t1t• J n d1•:1d u a l Rt-t 1rem1:nt P l a,1.
I
r--------------------IC M A Ae l11emen1 Corporat 1C ,n
The am r"unt tren ~f e rre d shall be de pos ited in the Trust and 1,hall
be credited to • PC'r table Benefits Account. Such •ccount , ..111
be 100 percent ve&ted in the Employee.
4.09 Limita tion on Annual Addition. The annual addition to•
Participant' & accounts for a Limitation Year a hall not exceed
his/her m11ximum annual addition , which a ha ll be the le sser of :
(a1 Twenty-five percent of auch Par t ici p ant'& Compensation
during the Li:nitation Year, or
(bl The amC1unt perm1.tted under the Code Section 415 (c) (U (A). as
ad ju&ted from time to time under Code Sectic,n 415 (di ( l) and
Trea s. ~eg. l.415-6(d). and in effect for the calendar year
in which the Li m1 tat ion Year end&.
4.10 Annual Additi o n. The annual addition to a Pt!.rticipant'& accounts
for a Li m1tatiun Year &ha ll be the 1um of :
(a l £r.iployer c on tributions and forfeiture ,. plus am o u nts
reapplied pursu a nt tu Section 4 .11 of the Plan, and
(bl The le s s e r C\f (l) a Partici pant's contributions (other th!lln
De d uc t ibl e Employee Contr1.buti ti nsl in excess of 6 percent of
his /her Com pensat 1on ; or (21 one-ha~f of the Part i -:ipant's
contribu t1C'ns l o t.h e r th a n Deducti b le Employee
Co n trib uti on s).
A "qualifying r o llove r dis t r ibution" describe d in Section 4.08 of
the Plan shal l n o t be considered as a nnual ad d itiC'ln o f a Participant.
4 .11 El iminati on of Excess Annual Additions. Any annual a ddition in
exce ss of the limitations C'lf Section 4.09 of the Plan shal •. be
eliminated in the follow1.ng C'rder :
(a) First, voluntary contributions (other than Deductible
Employee Contributions) and next, if ne cess ary. any
mandatory contributions . including any earnings and gai ns ,
minus any losses attributable thereto , to the extent
necessary to prevent a n excess a nnual a ddi ti on, shall be
r e t ·1r m:d t o the Participant.
(b) If nece ss ary. then, nex t , Employe r contributions a nd
forf e itures cred ited t o the Participant•& a c c ount for the
Limite t i C'l n Yea r. including any earning& and g ain s . mi n u s a n y
losse s e t tr1bu t able t hereto, to the extent n,!ces s arr t o
prev~n t a n e>c e ~b annual addition, s hall b e ~ea l locate j ~"
t he Sus pen r.e Ac c ount a nd &hall be reapp lied :u reduce
d J}la r -f o r -dtil lar Emp l o yer CC'lntrib u tion s oth~r1oo•ir.~ r eg dre d
t o b e ma dt f c r the nl-xt Limitation Year a nd :.uc cec-d.in g
Lirni ta t.i c•n }'ea r 5,, if nece 6 bary.
ICMA Rr.11re1ne ,1 Cor~oration
◄.l i Sht'r t Lirnitation Year. No twithstandinq an y thing to the contrary
in Se ,;tion IL09 of tht! Plan, if o 5 h or t L1mitatil,n Year i s
created becaus e of an a mendme nt changing tht! Limitation Ye•r to •
different 12-con,e cutive mc,nt.h periud, the maximum a nnual
additiun for the short Limitetion Year shall be the leu,e r of:
(a) The a mo unt de s c,.ibed in. Section 4.09(b) tht· Plan for
Limitation Year multiplied Ly the follo\.~OJ fi ·action :
number of mo nths in the
shC'lrt Limitation Year
12
or
{b) Twe nty-fi ve percent of the Participant 1 6 CC"mpensotion for
the short Lim; tat.ion Year.
4.13 Participant in Othe r Defined Con tributi on Plans.
Nc.,th\.d t hsta nding an y other p rovir.ion in this Plan, if any annual
a ddi tions are al l ocated u nde r any other Defi ned Contribution
Plan s maintained by the Employe r with re spect to a Parti cipa nt in
thi s Plan , and the annual a ddit i ons to the Part ic i pant 's acco,.mts
under all of t he Defined CC'lntribution Plans, trea ted as a single
plan, ~ou ld . bu t for this Sect i on 4 .13, exceed h i s/he r maximum
annu a l add ition f o r a Limitation Year, then hi s /her annual
a ddit ions shall b e reduced first in accC\rdance ~:ith such other
Plans (if t t1ey p r o vide for such r edu c tion in this situati onl , a nd
then to th~ extent neces s ary i n a ccordance ~·ith Sec~ion <.1 1 of
the Plan.
4.14 Participant i n De fin ed Be nefit Plan . l f a Participa n t h as at a ny
time been a participan t in any De fined Bene fit Plan maintai ne d by
the Em ployer, then for a ny Limi tatiC'n Yea r, the sum of the
Defined Benefit Plan Fr action and the Defined Contr ibuti o n .
Fra c tion 6hall not e,c ceed 1 .0. If thi s limitation would b e
exceeded, then the Partici pant 's projecte,j annual b enef it under
the Oef1.ned Senefit Plan shal l be re duced in a c c ordanc=: with the
terms there o f t o the extent necessary to &atis fy the 1 .0
limitation de1&cribec! in thi s Sec tion 4.14. If such Pla n d oe s not
provde for such redu c-tion or if the 1.0 limi tation is still
exceeded lifter the r ed u ctiC'n, an n ual a dditions sha l l b e reduced
t o the extent ne cessarr in the manner d es cri bed i ri Sec:1on 4.11
of the Pldn .
4 .1 5 Defin i tion s fC'r S ec ti o n s 4 .13 and 4 .14. f C\r purpose s of Scct i onE I
4 .13 end 4.14 of the Plan, the f ol lowi ng d e fi n iti o ns "PFly :
f:i ) "Defi ne □ C(l n t ribu ti on Pl an'' and "Defined Be n e f it Fla n " shal l
s h a ll ha\•t· the me aning s 6Ct f C'rt h in Sect i o n 41 ~(kl c-f the
Code a nd t he.~ r egulat ion s thereund e r .
l b) "De f ined Bene f it Pl e n fract i C'ln'' f C'r any Limitation Year
6hall mea n a trac t1 0n <'f :
------------------ICM/, Retucm ent Co, )Oration
of a Par:1dpa11t, as dctir:e d in Section l.415-7(h) (cl
of rcqulatil,n r.. end any successc.,r regulatJon&, under
•ll Oetinrd Bene fit Plans 11ver rnaintain'!d by the
Employer. deter 1'nined as t,f the close of tho Limitation
Year, and odJu&t e d under Section 41S(b) (2) of the Code,
if epplicoble 1 end
(2) The denominator of which is the ies&er ofa
(Al Tne product of l. 2~ multiplied by the dollar
limitation in effect for such Limitation Year
•Jnder Sect.ion 415 (cl 11) (A) of the Code; or
(Bl The product of 1.4 multiplied by the amo unt which
rriay be takon into accou nt under Section
415(c)ll)f8) of the Code ~ith re spect to the
Par t icipant under such Pla ns fc,r the Limi tation
Ve ar .
V TRUST AN D INVESTMENT OF ACCOUNTS
5,01 Trust. A Trust i s hereby created to h ol d al l C'lf the assets <'f
the Pla n f o r the exclusive benefit C'lf Part icipants and
Be ne fi c iaries. ex cept that e xpenses and taxe s ma y be paid fr om
the Trust a s pro vided in Se ct ic.m 5.03. Th e Emp l o yer shall be the
trustee.
5.0 2 Inve s tment r o we r s. The £Tnpl oye r or the Pla n Administrator,
acti ng a s a gent f C'l r the Empl o yer , shall have the po\,,,·e rs listed in
th is Section ~.c,:i "''i th r e s pe ct to in ves -:.r.-,e n: C'lf Tr ust. assetsd,
except t o the extent that the i nves t me n t o f Trust asse:s is
con t r olled by Participants pursuant to Sect ion ll .03 of the Pl ar..
(a) To inves t a nd reinvest the Trust ""ithout dis t i n ction
betwet>n princ ipal and income i n eny form of ta n gi b l e or
in t angibl e property, real, persC1nal. or rr,ixi:,d . a n ,j whe reve r
situated, inc ludi ng. but n o t by ""ay of limitat ion, COrt\;il t"n or
preferred stocks, shares of reg ulated inve s t ment c omp anies
and other mutual fun ds, bonds, loans. note s , d ebe ntures,
mo rtgageE, certificates of d epos i t, interest, or
participbtion , equipment tru st certificate s, co rr~"fl e r c !.al
paper inc l udi ng but not limi ted to parti cipat i on in f'Oo le d
commercio l p a pe r a ccounts, contracts ••1i t h i nsurance
comp ani ef inc luding bu t n ot limited t o in sur an =e, i n ::!.vi due:
or group a nnu ity , d e p t'sit a dmin ist re t i C"n, a nd guara n:e eC
intere 6 t c cnt ra c ts, d epos its at re asonab l e ra t es of i r.tere-s-:.
at ba nk1ng i n !;.1.i tu t ion s in c lu ding b u t n o t l i rT,ited t n ! 6\'!.:-.c;n,
acc0u n t s a nd c e r t ifica tes o f depo s i t , and l 'the r f o :-ms c f
sccu r1 t1e!:, n r 1nv Pstrne nts C"f a n y k1nd . c la !:s , ci r e r.e r , cte r
wha t snP ver an d r e>p rC &C'nt ing intere s t ~ in e n)' f c-rrr, of
entt>r p r1 !:>e, "''h':'r e v ('r it rna y b e l0cate d , o r gani ;e d C'r
ope rnt cd \r,,'it h 1n o r wi thou t the Unite d States o f Arr,e nc .!I,
whe t he r 6U C"h 1n ve s t l'Tlcnts are inc ome rr C1 duc1n g C"r n L•t,
"'ll h l'U:. bC'1 t10 l 1m!tl!d 1n e n~• r e 1,pect b)' E.t atutt:-c-r CC"U r t
r ulf' 4'1 C(?("l ~l l>ll p f t1 11y )UTH,d 1 c ti C"n I"('\,,' or h e rt.•b l!t-r l l
(bl
(cl
ICMA Re 11re1m,n1 C o , porntion
ft"rcc pu r p o rting to limit C'r <.'therwi&l" t1fftct LUCh
jnve ~tmcnts. A~6cts of the Tru&t may be inveht ed in
secur it1es L'r new ventures that invc,lvc • hiqh r.r degree or·
ris k than inV<'6tments thet have demcm&tratcd their I
inver,t ment perfcrmi,,rce c;,ve r •n extended period C'lf time.
To invest and reinvest oll or any part of the assets of the
Trust in any common. col lective o,r commingled trust fund
that is maintained by a bank o,r other institutic,n and th•t
is available to employee plan5 qualified under Section 401
of the Code. t'r any successor prt1vis ions theretc-. and during
the period of time that an investment through any such
medium shall exist. to the extent f':\f participatio n of the
Plan. the declaration of trust of cuc h comm o n, collective,
or commingled trust fun d shall constitute o part C'lf this
Plan.
To invest and reinve st all or any part of the a sse ts of the
Tru s t in any group annu i ty, deposit a dministration or
g u arante ed i n terest c or.tract i ssu e d t.:, an in su r ance compa ny
on a c o ,n;~Jngled or collec tive basis wi ":.h the a sse ts of any
ti ther plan or trust. c;ualified unde r ~\e c t i on 40 1 (al (24) of
the Cod e , and such c ont ract may be he ld or l &5 ued in the
n a me o f the Plan Ad m1ni s trator, o r 6 u c h c1 . • ~1 an a s the
Pla n A:::hr.inist rat o r may a p po in t . a s a g e nt and m•minee for the
Empl oye r. Du ring the period that an inve st.me n: thr o ugh any
s u c h cont r ac t sha l; exis t , t o the extent of participat i o n of .
t he Plan, the terms a nC c ondit ion s of s uch c C1n :.ra c t shall
c onsu t ute a p a rt of the Plan .
(d) To p u r c ha ~e r o r t inte re sts in real prope rty o r in mo rtgages
,,,~ rea l p n 1pe rt r, wherever suc h rea l property may be
s ituate d, tanci to delegate t o a pro p erty manager or the
h o lde r or h o lde rs c,f a ma jority interest in s uch real
prope rty or mo rtgage C"n real property the management and
o pe ration of any port i n:ere s t in such rea l prc.1pe rty o r
mortgage &.
(el
lfl
To hold ca s h awaiting ir,ve s tment and to kee p such por tion of
th!! Tru st in cash or cash balances, without l i ab ility for
i nt e r es t. in such a mo u nts as may from time t o time be deemed
t C'I be reaso nable and nec essary to meet obliga tions und e r the
Pla n o r oth e rwise t o be i n t he be s t interests of th e Plan. I
T ,:, r e tain. manage , operate, a dm inister , d ivide , subd ivide.
p 6 rt1t i o n , mo r t g age, pl e dge, i mp r ove. a l t e r, de mo li s h,
r c.-m o del , r epa i r , ll nd deve lop in o ny manne r a n y pro per ty ,
r ea l or pc r ~on a l , he ld i n the Tru s t. t o le ase suc h p r o perty
f ,:,r any p e r 1 0d C',( t i me , and to gra nt o pti o n s t 0 £Pll.
e)(c hang t·, l ~c1 !>C , o r 0the nds e dis p os e c•f any su ch p r o pe rty,
1,,,•1tho ut rt:-•Jard tc • r est r i c tl o n s a ppli c ab le t P fi du c iari e s Cir
othe r s a nd ~·1t.hc-u: th<' opprC1val of any c ourt .
(g) TP E,E-ll f r ,1 ca i h n r c :-p rh t, r c>d eefTI , excha n a t-f <'r oth~r
pr n rtC'r ty , Ct •~1 v<>~•. t r an !ft•r , t •r o t he r wH,f> d1 t.~C"!>P c•f a r y
J O
,----------------------IC:MA Retucment Corporation -
property h eld in the TnH,t. in any m.s nner .and at any timt, by
privatt> ct,nt.roct l'r at public oucti<m or otherwise, and nu
othe r p e rson Lhall be b0 und to see to the application ot the
purchase ffil'ney or to inquire into the validity , expediency,
or prC'lpriety of any such s ale t"r other dispot.ition.
(h) To enter into contract& for or to make commitments either
alone or in companv with others to purchaso l'r &el l •t any
future date any property acquired for the Tru&t .
(1) Tc, vote or to refrain from VC'lting ,my s.tocks, bDnds, or
other secur1t1es held in the Trust , to exerci_e any other
right appurtenant to any &ecuritic!; o r other propezty held
in the Trust , to give general or &pecial proxies or p<'wer&
of a t t o rne y with o r without. power t.'f &ubstitut.ion with
respect. to suc h 6ecurities and Cit.her propert.y, to exerciE.e
any conversion privil~dqes, subscr1pt.1on rights, or other
options or pr1viledges with respect to such securities and
othe r property and make any payments incide n tal the reto, and
generelly t o exercise, personally o r by general or limi ted
p o we r of atto rne \•, any o f the po .... ·ers o f a n o .... ner with
r espec t t.l, stoc k 6 , b o ndr., securities, o r other pr ope rry h eld
i n t he Trust a t a ny time .
(j) To o ppose o r cc,nsent t c, and participate in a n)' o rg a nizati on,
re o:-gun i zation . consolidat 1on , me rc:;e r. combination,
r eaCJustrnc-n t of finance!:i , .:-r s 1mildr arrangeme nt \.1 ith
r espec t t o a n y c ,•rpl•ra ti C1n , c0mpany C"r assl'C la tion. an t of
U 1e !-''Cu r 1t1e!:i of \.."h 1ch are h e ld in the Tru s t, to d o a ny
a ct. \..'it.h reference t h1:-reto, includ ing t hE.> exe rci se 0f
opti 0r1s , the making of a g reement s o r su bsc ri pt 1c-n s and the
paymen t o f expenses , a sr.e ssments, or &u bsc riptllms that may
be d et'rred ne cessa r y or ddv 1 sable i n c on necti cm t h ere\.'ith ,
and t o b ccept, h o ld, and r eta i n il!ln y securitie s o r other
prope rty that may be &o acquired.
(k) To d epos it. a ny prc-,perty held in the Trust ,,..,ith a ny
pro te C'tive , re o rganization, or similar cor..m 1ttee, and to
d elegate d i&cretionary powe r theretC'I a nd t o p ay and a g ree to
p a y p ar t of its expense s an d compensa t ion and any
a sses sme n ts l evied with n H-j . .:t t.o any such pr C'pcr ty so
d epc,s i t ed .
(1) 'I l' h o ld, t0 authe'\r izc t he h o lding of, a nd t t' r eg i ste r a n y
i nvestment t o th e Tru s t in the name of t.h e Pl a n , the
Employe r, C'r a ny nc-minee o r agent of !\ny of the f o r ,?g0 ing,
incl uc'lin9 t.ht-Plan Adm 1nist r ator, o r J..n b ea•e r for,..., t o
d e p0r1t 0r a rr angt! f o r the depos it cf securn1es i n a
q uali f lcd c<>nt ra : d ~p0 !.i t u ry even t hough , wh,:-r. 6l' fi~FCl Si t c ::,
5uch F-C C'Ur 1 t1<.>1, may be me rge d and h eld in ti ulk 1n :~,e n am e
o f t ht! nc-m 1 n~c-o f 6uch d e p o !ioi t o ry wit h othf::r r.ec uc i • 1 es
d epCl ~ ll E-d t hc·r c1n b ;,· a ny other pe r !.on , a nd t o C'rgan1 ze
CC'l r~c,rauorii r-r tru !:i tf. un d e r the 1.,,., . .., of a ny Ju r 1 F.dict i 0n
f ,,r tt,,. 1 u rr "~" l'f t1 c ri tu r1 n4 L•r h l 1lct 1ng t1tlr t c, an y
t>t ··1•1·1 t,· f c•~ tt ,,. '!r u !.t, a l w1 t 1, l 'r ..,.1t hClut t h1• a dd lt1 o n 0 f
ll
--------------------ICMA Re111ement Cor 11orati n -
5.03
wCl rd s o r o the r a c tiC'ln t o indi c ate that prt'p?rty i• held in •
fiduciary '-'t r epre!.r 11tative capac .1.ty , but t.he boc.,k & and
record !> of t h e P lon &hall •t all time & &hc,w that all &uch
inve s tme nts are part cif the Trust.
(m) Upon &uch terms a& may be deeme~ advisable by the Z:mployer
or the Plan Administrator, a& the case may be, for the I
protection Ctf the interests of the Plen or ft'r the
pre6ervation of the value of an investment, to exl!rcise and
enforce by suit for legal or equitable remedios or by c.,ther
action, or to wa i ve any right or claim on br.half of the Pla
or any d e fault in any obligation owing to the Plan, tC'
renew . e,ct.end the t i me to payment of, agree to a reduction
in the rate of inte re s t on, or agree to any other
mo dificat ion or change in the terms of eny obligation owing
to the Plan, to &e t tle, compromise, adju s t. or submit to
ar b itrat i o n a ny c la i m or right in fa vor of or against the
Ple n, to exe rci se and enfC'lrce any and all rights of
f o r ec l os ure . bid f o r p roperty in foreclo5ure, end take a
d ee d i n l ieu of f o reclosure with or witho ut pay ing
c o n si de r at i on t he r e f or . the c c,mme1n:e or d ef end suits o r
o t he r l eg al proceed ings whene ver a ny inte r es ~ c f t he Plan
r eq c1 re ~ i t, a nd to re p r esent the Plan in a l l s ui ts <.•r l e g a l
proceedi n q!i in a ny c o ur t o f law o r equ i ty c.•r be f o r e a ny b C1dy
o r tri bunal .
(n) T o e mp l oy suitabl e c o n s ulta nt s . depos ito ri ,'!s, agents, ,ind
l eq a l c ounsel on b e hal f of the Plan.
(o ) To rr,~kt.•, ex~cu t e , ac kn C1 wl edgo , anci de l i ver a n y a nd a ll
Ceed s , le ase s , mo r t 9a ge6 , conv ey a n c es , c on t r.acts , wa ivP.r s,
r eleases , or o the r i n ~trume nts i n writi n g ne ces s ary or
proper f or t he a c compl i s hm e nt of any of t h e f o r e going
p o 1,,•e r s .
(p) T o open a nd ma i n t ai n any bank accoun t or accoun ts i n the
name of t he P la n , the Employe r , or any nominee or agent of
the f o r eg o i ng, i n clud ing the Pl a n Adm i n i s trato r * i n a ny ban k
or b a nks .
(q) T o d o any a nd a ll othe r a c t s that may be d eemed neces~ary t o
carry o ut a ny o f the powe r s 6 e t f o r th herein , prc,v i ded that. all
such i nvest.men tr, c C'm p )y wi t h t he r equ irem ents o{ C .R .S. 31-30-
1012(5 ) (supp. !9 e ll .
Taxe s a nd [xpentes. All t axes o f a ny a nd al l k ind s wha_soe ve r I
tha t. may be l ev i ed C'lr a s&essed unde r e xi r.t1 n g or f utu r e l a 1,,•s upo
o r i n r e!:>pect t c, the T r u !:.t, or t he incC'mc the ret'lf, a r,d ,dl
commi s !.1C1n!:-0r a cqu 1 s 1tions c,r di s p C'l s i ti t'n h of se c ur 1tie ~ e nd
6 i rni l c,r expe nst>s c•f investment a nd r e 1nvestmen t o f the Tr u!>t ,
&hal l lw pa l d tr C'l r 1 the 1'r u !'.:.t . Su c h re a !>t.•n a ble c o mpens a t1C1n o {
the P l !!i n Adn 1n btrat C'r , a s may bP a greed upC'l n fr om tine tC\ timlJ
b1 · t h•~ LmJ•JPyP r 11rnd t.,e Plan Adm1ni s t r ator , a nd re i mbuu,..,me n t f o r
r ea sN,l!II l P 1-x1 •1•1 1~t-r J nc urrrd by t he Pl a rt Adrni n1 &t r a t C"r i r
pe rf c,r m<111 c-,, l •t l t! dut H•f )wre u r1d<'r (1 n c l ud 1ng bu t n<.•t l mi t ed ~,.
I
ICMA Re 11rcm ,m1 C o rporati, ,n
fee s fC'r legal, eccc.,untinq, inver.tment and custodial t.ervices}
1,hall alf,o be paid frC"m the Trust.
5 .04 Payment uf Bttnefit•. The p•)'•ment l'f benefits fn\m the Trust in
accurdance with the terms of the Plan may be made by the Plan
Ad ministrator, or by any custodi•n t'r othAr person so a,uthorized
by the Employer to maike such disbursement. The Plan
Admini&tratoC, custodian or other person shal l not be liable w(th
re&pe ct to any distribution l'f Trust assets made at the direction
of the En-,ployer.
5.05 Investment rund s . ln accordance with rules establi&ht!d by the
employer and the Plan Adminir.trator, the Partici pant may direct
his/her accounts to be invested in one C'r more i nvestment funds
&\'&1l able unde r the Plan, provided . however, that the
Participa n t.' s investment directions shall n c,t viola te any
inve !>tme nt r efitrictions i.peci fied i n the Ad o ption h greemen t.
S.06 Valuati on C'lf Accounts . As of each Accounti ng Date. the Trust
a ssets held in each inves tment fund offer~d shall b e valued ftt
fair ma rke t value and the investment income and goins or los&es
for each fu nd shal l be determined. Such investment income and
gains l\r losr.e c, fcir each f und shall be allocated pr opor:ionately
among all account balance s on a fun d -by-fund ba s is. The
alloca:ion shbll be in the proportion t hat each sueh a ccoun:
balance as of the i rrur,ediately pre ced ing Ae count i ng Date bears to
the tot a l of al l sueh accciunt balances, less am oun!.s h e ld in
Participa nt Lo an Accounts, a!:> of that Accounting Da te. For
purpo se s of this Arti cle, all a ccC1 unt balances inclu:!e lil the
a ccount bala nces of all Participants and Benefi ciaries and (li)
the Suspe nse Ac:cC1un :..
S.07 Participa n t Loan Accounts . Participant Loari Ac counts shal l be
inveE.ted in a cco rdance with Section 11.03 of the Plan. Suc h
accounts shall nci t sha re in any inve s tment income and gain s or
l osses of the investment tunds des c ri bed in Section 5.05 of the
Plan.
VI VESTING
f,,01 Vesti ng Sched ule. A Participant shall have a Nonf or feitabl e
In terest in the perccnthge of hi s/her E ph\yP r Contribution
Account d £-term1.nod pursuant t o the S chedule elected in the
Ad option Ag r eem€:n t.
6.02 Servic e Afte r Break in Service . Jf a Par:ici pant (\..'hether o r not
a Re-r!fnployt-d Jndiv1dual l r esumes empl C"\'ment af ter a Break in
Servi •:e. any t.ub!:.equ•;nt Pe n 0 d Cl! Ser\'ice &hall b e dis re gar d ed i n
deter,rn ning he No:•f o rfeita b le Jnterest in his /he r t mp l oye r
Cont r ibuti on 1.c cr-,u n!. accrued prior t 0 &uch Break 1n Se rv ice .
6 .03 Prior Service o f Re -employed Ind ivi dual. If a Pe rt icipant i6 a
Re~tmr l0yed Jnd i\'i cual . the Pe ri0d of Servicc-prit•r t o hi s/her
6t-pc'lrat 1c•n f :·c,rr bl'r V t c f" bhc1l l l>f' a ggregated i n d t>terrn111ng thf'
Nc-rd l1 rft!1la l .'1• J ntert:-~l 111 h1b/t1l•r t mployt-r \ont r1 h .1 t1c,n Ac cc,un t
l3
,-·-------------------IC MA Re1,rcrn e n1 Corporation -
.,:-crucd after hi6/her re -e mr loyment.
6.04 flpon Normal Retirement Ago. Notwith standing Secti<.•n 6.0J of the
Plan. a Participant ghall have a N•.mft"rfeitable Interest in
his/her entire £mployer Contribution Account, which ha& not been
previously f orfeited pun;uant to Section 6.06 of thtt Pl.an, if
he/&he is employed C'n or after hi&/her Normal Retirernent Age.
No forfeiture t.hall ari&e thereafter under fection 6.06 of the
Pl an.
G.05 Upon Death or Disability. Notwith&tanding Section 6.01 of the
Plan, in the cv~nt of Di s ability or d eath, a Participant &hall
have a Nonfc.,rf ei table Interest in his/her entire EmplO)'e r
Cont r ibution Account which ha& not bettn for f eited previou s ly
p u r s uant to S ection 6.06 of the Plan.
6.06 Forfeiture s . Except a s pro vided in Sections 6.04 and 6.05 of the
Plan, a Participant who separa tes from &,?rvice prior to obta i ning
fu ll ve s ting s h all f o rfeit that perce nt&lJe of his /he r Employer
Con t ri bution Acc ount ba l 1.1nce which has not veste d a s of the date
such Parti cipant r eceives distribution of the entire
Nonf o rf e itable J nterest in hi s/her Employer Contribution Account
pur su a n t t o a n elec tion under Sections 8 .02 and 8.03 of the Plan.
Suc h f o rt e it ures shall be all oc ated in t he manner described jn
Sec tion 4.02 o f t he Pl a n .
6.07 Rein stateme n t of r or fcltur e s . I f the Par t icipant r etu r ns t o the
e mployment o f the Enp l oye r before incurriny a Break i n Se r v ice,
any a~o unts f orfe 1 ted p u rsuant tC' Se ction 6.06 of the P lan shall
be r ei n steted to the Partic1pant 's Er.iploye r Contr ibutiC'n Ac count
withi n a r easona t;l e time at te r re payment by the Participa nt of
the a.m oun t o f t he distributi o n. Su ch repayment must be znade
b e fore t he earlier o f:
(a ) The ~-':e two y ea rs after t he date of r es u mpt i on of
empl oyment, o r
(b ) The c o nclu s i on o ! a Break in Se rvice after such resumption
of em p l o },•ment.
VII BENEFITS CL~lM
7.01 Claim of Bene f i t s.. A Participant, Emp loyee "r Benefic ia ry shall
n o tify the Plan Adrr.i nif,trator i n "(iting of a claim o f b enefit s
u nde r the pjan. The P lan Adm i nis r a t.or shall take suc h ste ps a s
may be ne ccr,!>ary t o fa cili tate t 1,<-payment o f suc h bene fit s to
the Partic.1}'.,a nt, Er--ploye e or i:\e nP.ficiary.
7.02 Ap peal Pr oc ed ur e. If a n y clai m f o r bene fiu, is. d en i ed by tte
Plan Adr.ilnu,tratc..r, t he Pla n Ad min i strator £hall no ti fy th e
cl ai mant i n ""r .1 t 1n g of tiuch den i al , 6tati ng f Qrth t.he 6pec 1 fic
r ea son s a nd ·i tl n g rr•ference t Q 1;peci f ic p rovisi o n : o f the Pl a n
u p on \,1h1ch the d N,idj i r, LtH,f'd. An a ppe a l p c dnd ,";I ( Lixty (6 0 1
da p , oftt•r n ·r <:Jf,t l 1 ! th<: n t•Lificdt.1 0 n of de nial &t"1 o ll be
l4
ICM/\ Rc tircmc ·11 Corpora11on -
granted. a n d Lai d nCttificath,n 1,hall adv11,e th" claimant uf the
a ppc nl pr oce dur r. The claunant ma\• fil e tht! appe al with the
Employer, ..,.ho1>t! deci&itrn 1ohall be final, to th~ extent •llowed y
the l•w .
VIII COMMENCEMENT or BENErJTS
8 .01 No rrnal Cc,mmencement c,f Ben e fits. The di&tribution of •
Parti c ipant'li accounts shall commence Bixty (60) days after the
closu o f the Plan Ye ar during which one of the following events
occur£, ~·h1cheve r i& la t er :
(a) The Participant o btain s age 65 or No rmal Retirement Age,
~hichever is earlier, C"r
(b) The Participa n,·. £Cpara tes from se r vice.
No twiths.tandi ng the fo rego ing, the Pa rticipant rr,ay elect, at a .
time prior t t' the corn.-n enceme nt of di st ributi o n described this
Sectio n 8 .01. t o h a v e di 6 tribut1 ons c om.'llenc e provided in Sect :i rm
8 .0} o f the Plan.
8.02 .Ele ct i ve Co:nmen-::ement C"f Bene fit s. No t 1,1ithstanding Sec t.ion 8.01
of the P l an , a f•ar t.icipant who retire s , be c C"mes Di sable d or
separates fr um :;erv ice f o r any other r easor,. may elect by written
n o tice t o the Plan Administrator to ha ve the distribu tion of
b ene fit ~ comme nce on a date earlier Cir l ate r t han that described
i n Sect1on S.0 l of t he Plan. provided th at such e arlier
distri but i on con.p l1es ,dth the age rest ricti ons, if an~•.
Gpec i !ied in the hd o ption Ag ree ment. The .E mp loye r shall place n c;,
r estri c tion s on benef i ts pay abl e upo n a ttai nment of N"rmal
Ret ireme nt Age . Disa bil i ty o r deau,. A Participant's election
6hal ! be r evocab l~ &nd may be a me nded by the Par tici pa nt.
8.03 Rollover t.o An othe r Plan. Not"''ithstanding Section 8.02 of the
P l a n , a ny Partici p11nt wh o ter-ninates e mp loyment and subsequently
be corr.es em ployed \rr,11 th a nl,ther u nit of 6t&t e o r l ocal g overnment.
or an agency or instrume ntality of one o r mo re states or local
governments, &hall be entitled t o r ec<!ive a d i6trit:uti o n of the
No ntor fe itabl e Inte res t in al l o f h is/her accou n ts for purpC'ls es
o f mak in g a r ollover c ont ribution , to t he maximu;:i extent
perrr,itte d u nde r the Code , t o t he n e w Employer 's p la n , provided
that t he new Employer certifies t o t he Plan Adrr,ini st rator t hat
its p lan provide6 f or the a cceptance of a "guali fyir:g r ollove r
di std b ution ...
B .04 La test CC'l mme n c eme nt of Benefits. No t"'·i ths t andi ng Section e. 02 of
t he P)an , th~ da,tr1but 1 o n c-! a P art icipan t 's acc o u n t must
c ommCc'r ,ct~ nc,t l ater than the end of l ) the taxable yea r in "''h ;ch
the Purt 1c1 pant atta1n s a 0e 70 )/2. C\r 2) if lat er., the year i n
wh i ch tlw Pnrt1 c 1yan t a c tually r et i r es.
l '.,
ICM A Rcl11ern ,m1 Cor :-i ora1 ,on -
8.05 De l•hn imu t, Accounts. Notwith6landinq thP fc,r e g c,inq in thi&
Article VJ lJ, • P"rticipe n t wh o incur& a Break in Se rvice end "'1ho
h a s • COr.\hi ncd baler.ce c.,f less than $5.000 in a!l c,f his/her
a·.c o unt s , t.h all be paid hh./he r lump r.um value \olit h in 60 days
Aft er the Dreak in Ser vice.
8.06
8.07
lo:ithdrawal of Voluntary Cont ributit'ns . A Participant rn•ay upon I
written request 1o·:..thdraw • part of or the full amount of his/her
Vo luntary Contribution Account. Such withdrawc1l1 may be made •t
any t !::-e, provided that no more thnn two such withdrawal& may be
rnade du1 ing any Plan VP.or.
Withdrawal of Deductible Empl oyee Contributions. A ParticiF•nt
may upon written request withdraw a par t of or the full amount of
his/her Deductible Em p loyee contribution Ac cou n t. Participants
""ill incur a penalty tax for prematur~ distribution if a
w1ttdrawal vcc ur 6 prio:t· t o Disability, death or attainment of age
59 ·,12.
IX DEATH BENE,!T S
9.01 Pre -reti r ement De at h Be n e fi!.s . Shou l d the Participant di e befC1re
benefits h ave comme nced. a Be nefi c iary othe r than the
Participant 's surv 1v in ,J r.pouse o r a Qualified Beneficiary , must
r ece iv,: pa yment o ( the Participant •s ent ire Ac cC1u nt ba lances
""it.h in f ive years C'lf the Partic ipa nt's death. Jf benefits ere
pa yable t o a surv i vi n g spCl u se on account of t he Participan t's
d e ath, a nd the S'Jr v 1 v1ng SpCl use d i es bef C'l re b ene(i-:.s ha ve
commc>nce d , a Be n e ficiary othe r t han a Qualified Be ne fi ciary must
r eceive paymen t of the P~rt1c 1par-.t ' s e nti r e Accou n t balances
""ithi r. f1v e y e a rs rf the s urviv ,ng spouse's deat h. Un less the
Beneficiary e l ects otherwise . p!lCl r to the time dis tribution i s
to b e made , t he Fart icipant' s entire AccC'lunt b alances shall be
pai d in a lump sum on the la st day of t he fi tty-ninth mo n t h after
the d e ath of the P n rtici pa nt o r sur viv ing spouse , ""h icheve r is
a pplica b l e .
9.02 Post-r '"ire ment Death Benefits. Should the Participant die after
he/she h,is begun r!'ceiving bene fit payment s, a Be neficiary other
t :i a n t he Partir.ipant 1 s surviving &pouse or a Qua ~ifie d
Be neficiary sh a ll receive the remaining Particip3nt' s a ccount
~ala n c es , if a ny i s payable, withi n f ive years of the
Participa :i t 's death. If benefit s have commen c ed to a 6urviving
&p ouse o n !!c count of the Pa r ticipant 's death, a Benefi ciary oth erl
than a Qualified Be neficiary s hall re ceive the r ~ma ining
Participant's ac count ba lance , if a ny i s pa y a ble , \o'i t h in f ive
ye a rs of t · e su r viv 1ng spo u se ' 6 d eath . NOt\o·i th s t anding th P
f or egoi ng , !i u c h Be n pticia r y may ele c t t o contJ n u e tne p ayme n t
schedule i f p a\'ment has cClmmenced tC'I the Partjc i pant (C'l r h i s/h e r
&u r v ivi n g !i p o use , if a pplicabl e) und e r a p e ri o d ce rta i n not
extend 1 nq bey o nd l l t h e l if e expe c tancy of t he Pclr ti cipant , 2 )
t h e Jl"'lnt lif e ex~c t ancy cif the Pa r ticipant a nd h1 s/her &p o u se,
1f ma rri ed , l'•r 3) th~ l ife e )(pectan cy o f the sur v i ving s p o use, if
a p J.,l 1c ,at.,l ,•.
J L
I
I
ICMA Rellrement Corporatic,n
9.0) Qualified 8 C'nefic1ary. Wh<'tl1cr bcmt-fit p1yrnent10 have convnenc1d
or not, if • QuolifH:ri 01 •uf'ticiary commences to receive
distribution withi11 t1nu y~ar ~f the death Df the Participant <.•r
the Partic1pant'G t J rviving ~pouse, if applicable, the
dir.tribution may be rnttde over a period which ia not longe r than
the gre ater of:
la) Five yt!arc afttir the d e ath of the Participant or his/her
&urviving &pouu,. if applicable, or
(bl The life ~>C l'<'C tancy of an individual with an age equal to
the agu of tho Par ticipa nt Cir hi&/her surviving &pC'luse, 1 t
applicable. at the time c.,t d~ath.
Notwithsta nding the foreg o ing, a Quali f i e d Beneficiary who is
und<!r the a ge of 22 at the time of the death of the Participant
or hi &/her &urviving spouse. if a pplicable, need not commence
distribution prior to a ttainment of age 22. further, if the
Qualifie d Bene ficiary is permanen t ly a nd t l',tally Di ~abled,
distributi o n may b e made over a period which i& not longer than
t h e greater of 11 the period d escribed in ~ubsection s (a I and Cb)
o! thi s Sec tion 9.03 o r 2) the life t=xpectancy of the
Be ne t i ciary.
If the di s tribution does n ot comme nce ...,ithin one year of the
deinh of t t-,e Pa r ticipant or hi s/h er surviving spou se , if
a pplicable (or in the ca se of the Qualified Ben e ficiary under age
22 . -..·ithi n l•n~ y e a r of his/he r attainment 0! oge 22), then the
d1 stri buiton &hal l b e mad e with i n f ive yea r s of t he death of the
Partici pa nt oi-hi s/her s urvi v ing spo use, i f appli-:able (o r in the
case of a Qualified Be neficiaq• u nder a ge 22, -..·ith in five y e ars
of his /h e r a tta iru-ent o f ftg e 22).
Unless the Be neficiary elects otherwise, such distribution &hall
be made in o lump sum on the last day of the calendar month
immediat e ly preceding the required distribution date. Thi s
Section 9.03 Gholl be inapplicable unless Sec t icn 4 0 1 (al 191 of
the Code is ame nded to permit the provisio n s set forth herE<in.
Unle ss a nd unt il such a mendmen ts ere made, Sect."·n 9.01 a nc.1 9.02
of the P l en shall apply a s if no B2neficiory were a Qualifi !d
Bent ficiar }'·
S.Jrviving S p o u !.e. A surviving spouse of a Participant ma.,. ell?.c t
to co,~e;1c~ ben ef it s a r, provided i n Art.i cle VIII , a s though
he /she wer~ the Participan t , a nd may elect t o have b enefi ts
distribute d in a nr manner provided fer in Arti c le X. Fo r
purpose& of t h i s Secti on 9.04 , a surviving spo use i s a
Be ne ficiar y \<.·ho wa s married t o the Par t icipa nt on t hP d ate C'l f t he
Partici pant 's d ebth .
X MODES or Dl S T RIBU1 J,Jt; or Bf:NEf ]TS
10.0 1 No r mal Ho:fo· o f 01~tr 1bu t1 on. A Participa n t wh o i r. e n titl C!d tC'I a
d1 s tr1bu t1 011 p u r suant t u SPction~ 8.01 ore.:, o f t hP Pla n ~r wh l•
i ~ r f:'qu 1rC:-o t t • r1 .. c 1•1vt• dlt,tr1buti o 11 !)ll r &utt nt t o Sec-:1011 8.04 of
Jl
10.02
ICMA Ac11rcme n1 Corporalion
the Plan, &hall receive approximatoly equ.11 payment6 over the
life e•po ctanc-y of the Participant. C"C if fflftrried at the time th•,
distributjon comm~nce11, then C'IVer the j oint life exf>@ctancy of
the Participan t and hi s /her apou,e. Nt'twith&tanding t he
foregoing, the Pa rticipant may elect:. an al ternate mode of
distributi on eg provided i n Section 10.02 of the Plan. • I
E:lectivo Mode of Di&trib~tio n. ~ P,articipant may revocebly ele-:
to have hu;./her accounts dir.t r ibu t;:e d in a ny one of the followin9
modes:
(a) Equal Paymenu,. Equal monthly. quarterly . semi -~nnual . or
annual payments in an amount chosen y tho P«ir ticipant
cont.inu1ng until the account& a re exhaust a r1.,
(b) Lump Sum. A l ump sum payment.
(c) Period Certain. Approximately ••qu al n-.o ,·.t.hly. quarterly,
semi-annual, or annual payments ~ calculated to continue for
a period certain cho sen by the Participant.
(d) Retirem~nt Annuity. 1'. pare. of or the entire account
balances ~.ppl ie d to purcha r,e a single premium annuity
contrc,,ct •,.·hi ch shall b'! di s tributed to the Participant. A
joint and survivl,r annuity shall be one of the annuity
options provided under any such contract.
(e) Other . Any other s equence of &,.t ',·ment s requested by the
Participant. and agreed to by t)\J? r lan Administrator.
10.03 Quali fied J oint an d Survi vor Annuity Contra c t .
(a) If a Participant wh o hl:ls a n eligible spouse requests a
distribution unde r the Plan in thP form of a life annuity
contract on or after the first d J , o f the month in whic h
he/lihe att ai ns a ge 55, then &uc ! ,·(,ntract &hall be a
Qualif ied Joint and Survivor 1'.n nu1.ty contract.
(b) >. Partic1.pant may elect , ot any time prior to the
commencement of distributiC'lns unde r the Pla n, not to have
the provi sion s of subsection (a) of this Section 10.03
a pply . Such a n election must be made in writing and fi led
with t he Employer. Th e Employer shall provide the
Participant a t l e a s t 12 3 mo nths prio r t o his /her attainment I
of No rm al Retirement Age or. if late r, t'ln or a bout the date
he /s h e becomes a Partic ipant in the Pl an , with a written
noti fi c ation, in non t echni c a l t e rm s , g enerally explaining
the term& a nd C("lndi tion s o f the Qualified Joi n t and Surviv0 r
Annui t y c0ntract. t he a vaila bil ity of the elec tion, and t he
fi nancial effect of a n electio n. with further d et ail s
a vaila b )c u p C'n written reque!>t. The not.ificiation may be
g ivPn by p os ting a g ener al nt'ltice . Tht> Parti ci pant &hal l
h av e a t l~a!.t 90 da~·& aft.er receiving the written
expl a nat i ~n in which to make a n election or r ~q ueb t furth e r
dtt a ll b, a nd, 1f f u r t h t-r dett11l 6 a re r equcE>t l'Cl, h e/t.hf' sha lJ
1 8
-------------------ICMA Retirement Corporation
he ..,e •n additi onal 90 t1 ays efter Guch detail, are pcC'vlded
in whic h to make an e l e ctit'n .
An election describe d above may be revoked in writing by •
Participant at any time prior to the commencement of
distributions under the Plan. After auch an election is
revoked, another election may be made at any time prior to
the commencement of benefite . _
(c) Not.with standing the foregoing provisiO")S, a Qualified Joint
and Survh1t'r Annuity contract may prt',,1de that a surviving
a pOu1e to whom annuity benefits a r e o t herwise payablf" under
r.ubGection (a) t'f this Section 10.0l tr,ay elect to have
b ~,·tef it& paid in any other form permitted under Section
1<.i .02 of the Plan. At the written request of &uch a
survi v ing &pouse. the Employer "will furnish such spouse,
within a reaso nable time after the reques t, with • "written
explanatiC'ln. in nontechnical lar,gua gt::, of tho survivor
annui t y and any ot.her form of payment that mey be selected.
This explanation will state the financ ia l effect of each
for m o f payment .
1 0.04 El ection of Modf", A Participant's election of a payment option
must be mad e a t l~ast 30 days before the p a yment of benefits i&
to commence .
10 .05 Limi tation on Participant. Up on attainment of age 70 1/2 , the
payment C'lpti o n cho sen b y the Partic ipant mu st provide f or
pa yme nt s ovi!r a pe ri od not longer tha n the l ife or life
e xpec tancy of the Parti c ipant , or, in c ase t he Partici pant is
marri e d , t hen o ve r the jc i nt live s or life e xpec t anc y of t he
Participant and h is/he r s pouse .
XI LOANS TO PARTICPANTS
11.01 Availability o f Loan s t o Participant&.
(a) If the Employer ha r, elected in the Adopt ion Agreement to
1nake l oan s avai lab!e to Participant, a Participan t in ay a p ply
for a loan from the Plan subject to t he limitations and
othe r provis ions o f this Article XI.
(bl The Employer sh a ll e s tablis h written guideline& g overning
the granting c,f loa ns , provided theit s uch g ui d e line s e re
ap pro ved b y the Plan Admini5trator and ere nt't inconsiste n t
""''ith the provisions of this Article XI , eno that l oan s ar e
ma de availab le t o a l l Partici pan t s o n a r easo:1a b ly
equi va lent b a si s .
19
ICMA Rein< rn en l Co , pora ,on
11.02 Te r ms and Cc.,nd1tit'n 5 <'f Loans tt, Participant•. An y lo.in by tho
Pla n to a Pe rticipant under s ~ctiC'n lJ .Ol of the Plan s hal l
&ati s fy the f o lh1'"'1n9 requ i rements i
(a) Ar'IC'lunt t'f Loan. At the time the loa n is made, the pricip•l
a mc;,unt C,\f the lo•n plus the C'IUt&tanding balance (princip•l
plus a ccrued interest) due "" any other outstanding loana I
the Participant from the Plan and from any other plans of
the Employer that art qualified under Secticm 401 lo l of th
Cod e &hall not exceed t.he l •~ast of (1) $50,000 , or 12; the
gre ater of (i) $10,000 o z-.1.i J one-half of the va l \i e-of the
Part i cipant ' & Nonfc-rf ei t •1')1.e Interest in all of hi<i fl'r
accounts ur,der this Pla n except hi&/her Oe d u.:-: ible £rrp lc-yee
Account , t1 r (3) the value of the Partiicpant.1 s
Nonforfeit abl e Interest in t'l is/her Dnployer Conti-ibution,
P4rtir:ipa n t Contribution , .,.,.d Po rtable Ben efi ts accounts.
(b) Ap plica tion for Loan. The Part ic-i p ant n.u s \. :-tive t h e
£m p l ◊ye r adequate written no ir.e, a s deterr.i ir ed by the
Em p loye r, of the am o unt and de s ired time for receiving a
loan. No more than one loan ma y be ma de by the Pla n to a
Pa r t1 c i pant i .. , "'ny Plan Yee.1·. No loan shall be approved if
a n existi ng . <. -.1 from the Pl6 ,, t o the Participant i s in
d 1:d ault t o a :,•. eKtent.
(c) Le ng th of Lt,an. The Participant s hal l be r e qui red t.o re r,ay
t he l oan i n apprcix i mate l y equal in s tellme nt s of pr inc ipa l
a nd i n!er es t over a period t hat d oes no t e x c e ed fi v e years;
pro v i ded , h o wever, t ha t if the prote e ci s of t he l oan are
a ppl ied by the Pa rticipant tci acqui r e , c o n s t ruct,
r e c ons t r uct, or s ubs tentially reha b ilitate any d welling u ni\
tha t i s t o be ur.e d within a rea s on a ble time after t he l oan
i s mad e as the principal re sid ence of the Participant or of
a me mb e r of hi&/her !ami ly, the five ye ar limit shall not
a ppl y . I n this e vent , the per iod of r epa yme n t shall not
exc ead a rE::a s o na b l e period d ete r mined b y the Emp loyer .
Pr i ncipal in sta llments and interest payment s othen.·ise due
may be su s pended during an a uthorized lea ve of absen ce, if
t he promi ssory note 110 provi des , but not b e yond the original
term permitted under this subsecti on (cl, with a revised
payment schedule (w ithin such term) instituted at the end of
suc h period of s u spension .
(d) Ac c e Jeration. The maturit y o f the l o an sha ll be
a c c ele r a t e d . and the principal a mo unt of the loan, t oge t h e :I
with a ll a c crue d interest. shall i mme diatel}' become due ,
,,:he n t he Pa r t icipant. either 11) r ece ives a di s tr i buti◊n !re.
hi s EmpJt.,y e r Con tr i b ut i o n Ac c o unt, Pa rtic 1 p a n t Con t r 1bu ti or
Ac coun t, C"r Porta b le Ben e f its 1..cc oun t ; or (2 ) inc u r s a Br ea ..
i n Se r v i c~.
(el Pr epaymen t. Tn r~ Parti c ipant £h a ll bt-pe r "Tl i tted t C" re pa ·,· the,
l o11 n 1 n wh 1..1 l f' 0 1 i n p art a t a n y t im{! pri or t o ma t u r ity,
w1t ht1 U':. P"l ,a l t y .
2 0
I
IC MA Ret 11 11rnent Co, porat,:,n
({) Note. 1'hl' loan 1,h all be, Pvidcnc-cd by • pr umissory nC\t•
executed by the Part i cipant and d e livered to the e mployer,
and &h all bear intore&t at a rea &o n.,ble rate d~termi ned by
the tmployer.
(9) Security. The loan Eh all be secured by an as1i9mnent of the
Participant•• right, title and intere1t in and to ~i 11 /her
Employer Contribution Ac count, t.o t.he ext{trt vested,
Participant Contr i butio11 Account , end Portable Benefit s
Acc ount.
(h) Default. In the event that • loan made 1.:0 a Participant i s
1n d e fau l t and the Employer dete rmines thei t it is necessary
for a d is tribut ion t o be rn ade under the Plan in order to
cure Guch default. the Emp loyer. with notice to the
Pa rt ici p ant, &he .'U c ause r, d !.stribu tion "":o be ma d e on behalf
o f the Par tic ipa nt under the Plan. wh ich &hall be applied by
the tmployer to t he unpaid balance of t he lo.:1 n , i n cludin9
accrued interest . Such di&tribution s hn ll be charged
a ga i nst the Par ti cipant'& Volun tary Contribution Account,
his /her Partici pant Con tribut ion Ac c oun t, his/her Portable
Benefits Acco unt, and his /he r Nonforfeitable Interest. i n
h i s/he r emp l oyer CC1nt r ibu tiC1 n Accoun-:.. f ollowing separation
from service. in tha t o rder of priority .
(i} Othe r Te rm s end Conrlitiors. The E'mploye r s hal l fiK such
other terms and c onjitio11s of t.he l oa n as it deems necessary
t C" comp~y with legbl rc::gu:..rements, t o main ta in the
qu a l ific at :.on c,f thti Plan and Trust u nder Se ct i on 4 0 1 (a) of
t he Cocic . or t o pre vt nt the treatment of the loan f o r tax
p u rpose s as a di s tribution t o the Participant. The
tmploye r, in it6 discretion for any 1·e ason, mar fix o t he r
t erms and c onditions of the loan, no t inconsist.ent with the
provis i on of t his hrti c l e XI.
11.03 P art icipant Lo an Account s
(a) Up on a ppr oval o ! a \o~n to a Participant by the £mp loy er. a n
a mo unt not in eKce s & of t he loan shall b'! tra n s ferred from
the Participant 's other inv e6trnent fund I 6) • d escribed i n
Se ction 5.05 o f the Plan , to the Participant's Lo an Ac cou nt
a£ o{ t he Acco u n t ing Da te im:r,e1iately preceding t he a g reed
upon date o n whic h t he l oa n 1.s t o b e made.
(b) The a sse ts of a Par ticipa nt'c; Loar. Accoun t may b e i n\'este d
a nd r-e1nvested on l y in p r omis&ory n otes re ceived by the Pla r
fr om the Participant a s cons ideration fo r a loa ,, permit te d
by Section ll ,O l o f the Pl a n c.,r in c o sh . Uninvested ca s~,
bale nce s in a Pll rt1cipant 1 s Loan Ac c ount sh al l nC\t bear
intcr c!;t. NC\ p c r s C'l n wh o it otherwise a fidu ci ar y c,f t he
Plan &hall b~ liable for a n y lo&&, o r by rea son Clf a n~·
brea ch . t h u t re bu l t~ fr om the Participant•, exe r cise uf &u ch
c c,nt r o l.
(c) R('raym<·n: c,f p n r:npa l and pa y m1;:>nt Cl f int e n ~r.t &han t>e moot
J l
ICMA Re t11cincnt Corporat 11..1 ,
by payroll d o du C'tion and shall be inve &ted in C\ne or mC\re
oth~r inver,tment funds, in accordanct-with Se ct ic,n ~-0~ of
the Plan, a& c,f the next 1'ccounting Date after p.1yment
thereof to the Trust. The aml,unt so invested &hall be
deducted frC'm the Participant•• Loan Account.
(d) The Employn shall have the authority to .. tablish other
reasonable rules, nC'lt incC'ln&istent with the provisio ns of
the Plan, gvverning the establishment and 1nainte nanc.,,, o •f
Participant Wan Accounts.
Xll -PLI\N AHENDl<ENT, TERMINJ\TIDN /IND DPTJ nNAL PROVISIONS
12.01 Amendment by Em p loyer . The Employer reserve s t t ... ;..·~'i , (. subject
to Section 12.02 ot the Plan . and subj ec t to e.pp n w by 65\ of
all Participants, to •~nd the Plan from time to llm~ b y .a i t.her1
1) Filing an am e nded Adoption Agreement. ""ith the: lCM.I,
Retirement Co rporation t o change ar.y provision previously
elected by i t , or
2) Conti nui ng the Plan in t he f o rm of an amended and restated
Plan a nd Trust in any manner it cC1 ns iders a ppropria te .
Ho we ver , Parti.cipant account balances shall nut be
tra nsfe rr ed to such a mended a nd res t ated tru st until the
Em pl~ye r certif i es t o the Plan Adm in istrator tha : the
a mended and re s t a ted Plan a nd Tr us t CC'lnti m.ic?s to meet the
r equi r ements of a qualified plan u nde r the Code .
12.02 lvnendmen t t o v est ing Schedule . If the Employ e r, upC'ln approval b y
65\ of a ll pa rticipa nts, am ends the vesting s c hed::le . a ny
Participant may within 60 days a fter t he amendment effective date
or the date of written notification o f the Plan a men d ment,
whichever is later. e l ect to hav e his /her Nonfor fei table Interest
computed without r egard to such am endment. If such election is
made , t he vest ing sched ule on future c o ntz-ibutiC1ns shall also be
computed •·ithout regard to such ame noment. In any ca se , such
amendme nt shall not reduce the Non forfe i table Interest ... 1f eny
Participant eccrued e s of the de te of the amendment or the
effective date of the amen dment, whichever i& late r .
12.03 Terminat ion b y Em p l oye r . The Employer ma;, nc,t term ina te thi s
Plen.
12 . :)4 Discontinuance of Contributi on s. A permanent di sc o ntinua nce of
contri butions t o the P lan by the Employer. u n les 6 a n a me nded and
resta ted Plan j s esta b l ished . s ha ll cons t itute a Plan
termination. a nd is p r o hi o ited by Section 12.0 3 o f this Pl e n .
12.05 Am e ndment by J C-~A Ret iremen t CC1rp C1 ra t .. ThP I C~K Re t irement
Cor poretion mi,y nC'lt a mend t his Plan.
12.06 OptiC'l nal Prcw u ,i0nE>. Any prov i s i C'ln whi cn is opt10nal u ndP r thi s
Plar1 bhll ll hl•Crirnt• c ff t>c tlve 1f a no C'lnly if Joint l y a grc.-t-d l C'I by
the Cmrh•y"r a r,o th<.' JC'Mh FI E>tlremt:r.t CC"r pr,rat 1 o n .
22
I
ICMA Reli 11 •ma n1 Corpora1i1m -
UIJ IIDMINISTAATI ON
13.01 Po wers or th~ Em p l o y er. The employer •hell h•vtt the follc-wing
pC1we r s a nd dut ie b:
I)
21
'lo appC'int and remove , with or withuut cau1n1, the Plan
Admini t.trator,
To amend or terminate the Plan purauant tc, the provi1ion1 of
Ar t icle Xtt,
3) To appoin-:. • committee to facilitate admini stration of the
Plan and ccmmunications to Participant.&,
41 To decide all quenions of eligibility 11 t n r Plan
part i cipation and 2) upon appeal by any Par tic ipant .
Fr•loyee, or Bene ficiary, for the payment •~f 1-tenefits,
5} To engi!li ge an independent qualified public eccountant, when
r e q ui r e d to do so by law , to pre pare annually the audited
financial &tatemtnt ,:. of the Plan's operationsr
6) Tei t ake all action s and t o cC'mm un icate to the Plan
Adm i r.i s trator in writing all necessary information to carry
out the t e r ms o{ t he Plan and Trust; and
7) T o not ify t he P lan Ad ministrotC'lr in writing of t he
t e r minat ion o f t he Pl an .
13.02 Duties of the Plan Ad mi n i s trator . The Plan Admi n istrator 6ht.l l
have t he f o llo"''ing p o we r s and duti es :
1) To con s true and interpret the provi s ions of the Plan;
2} To maintain and provide such reports, schedules,
d es criptiong , and individual accour: statements ag are
re q uired by law; and to furnish to t h e Employer, upon
reque gt, copies of any or all such a1a t erials, and further,
to make copies of such instruments, reports, descriptions,
and statement s as are required by low available for
ex amination b y Pa rticipa ntr. and 6 \.l Ch of their te!neficiarie s
wh o are or may be entitled to be r.efits under the Pla n in
su c h p l a c e s and in such manner as require d by law.
3 ) To obt e i n from the Employer such info rmati on a s s hall b e
nece ssary for the proper a d ministration of the Plan;
4) 'T c, d e term i ne the am o unt, manner. and time of paymen t of
b e ne f its he r eunde r :
!>l To a ppo 1 n t a nd retain i&uch age nt £, counse l, a nd 1ccountant1:,
f C'l r the purpo£e of pr o perly admi n i£tering the Plon;
6 ) 1u di1.,t r ibut e t h,.. a tM•t b C'f thf> Tru s.t p ur s uan t t o Se c ti on
2 3
13.03
13.04
ICMA Re111eme n1 Corporation
!>.O l of the Plani a nd
7) TL' pay expenses frC\m the Trust pursua nt to Secticin !,.03 of
the P lan, and
81
for or required by law.
TC" do such other act& reasonably required to admin.iater ti
Plan in accordance with. it.a provisiona or aa may be provi
Protection of the Employer. The Employer shall not be liable r
the acts or o mi&&ions of the Plan Administrator. but only to the
extent that such a c t& or omi&&ions do nc c result from tho
Employer's failure to provide accurate or timely information a&
required C'r nece ss ary for proper admin istratit,n o f the Plan.
Pr C'te ction of t.he Plan Ad ministrator. The Plan A.-\mini&trator may
r ely upon any c e rt i ficate , n o tice or direction purporting to have
bee n signe d on behalf of the Employer \o'lllch the Plan
Adm ini strator b el iev es to have been signed bv a duly designated
official of the Employer.
13.05 Resignatil,n or Rem oval of Plan l\d mi ni &t rator. The Plan
Adm inistra tc.,r may r esign a t any time et fec t ive upon &ix ty (~0)
day s prior wr itten nC'tice to the Employe r. The Plan
Adm ini s tra tor ma y be re move d by the Emp loyer e t a ny time upon
sixty (60 ) da ys prior written not ic e t o t he Pla n Ad minist rator.
Upcm the r es ignation or removal o f t he Plan Ad min i s trator, the
Emp l oye r ma y , if it GO elects , a ppoint a successor Pla n
Administ rator h avi ng such powe r s a nd duties as ma y be a.greed upon
b y th£> Emp l oye r and any such Plan Admin istrator ; othen .. ·i se, the
Emp loye r shall a s sume the pt"wes a nd dutie s of the former Plan
Ad mnis trator a ny any Tru st as s ets former ly invested b y or held i n
the name o f the Plan Admin istrator sha ll be re tu rned to the
Emp l oye r in cash or property, a t fair ma r ket value, except that
the r etur n of Tru st a s sets invested in a contre c t issued by an
in sJr a nce c om pany shall be governed by t.he t erms of tha t
contra ct.
13.06 No Termination Pena l ty. "!ile Plan Ad ministro tor shall ha ve n o
authorit y or discreti on to impose any terrnin ation pe n alty upon
its remo va l .
XII' HISCELU NCOU S
14 .0 1 No nguora ntee of Employment. Nothing c ontaine d in t hi6 Pl a n 6hEI
be constru e d a s a con tr ac t of e mp l oynent bet ween the Ertiplt"ye r t
a ny £Tr,ployeE.·, or a t e ri ght of a ny E,np loyee t o b e c c-nti nued in
the e rrr,loymc.-nt <.•f the Employer. a ~ a limitet i c,n cif t he ri':!h t o!
the tm~loy c r t 0 d i sc harge a ny of its Employees , "''ith o r "''ithout
C 6 U !.C .
14 .02 Rig h ts t t' Tru 6 t ~s set&. No Empl oy'"!e or &en e fic ia ry i&hi,l l have
a ny rig h t t.<.•, c,r 1ntere!>t in, a ny a s s e t 5 of the Tr u s t upcin
te rr , n.)t i on p f hi!../ht!'r f'mp l C'y rnfln t <.•r C'ltherwi 5c. exc e r t a s.
pr c-v 1dc•d fr 0m tl ffll• tc.1 t 1mt! u nde r thl 5 f lan, a nd tht-n only t<.• t he
24
ICMA Aelirernen1 Corpora :ion
exte nt of the benefit, payable under tht-Plan to suc-h E:mpluyee or
Benefi c-iery out of the e&&et& Ot the Trust. All payments of
b e ne f its •• provide d for in thia Plan ,hall be tnadk solely out of
the asLe ts of the Trust and none of the fiduciarie, chall be
l i able therefor in eny manner.
14.03 Nonalienetion o't Benefits. Except •• provided in Section 8.01 of
the Plan, benefit& payable under thia Plan shall not be subject
in any manner to anticipation. alienation, sale, transfer,
Ar.£ignrnent, pledge, encumbrance, charge, qarnishment, ex~cution,
o. l evy of any kind, either voluntary ('Ir involuntary, prior to
•(.l ually being received by the person entitled to the benefit
u nde r the terms of the Plan1 and any at tempt to anticipate ,
o l !e nate, sell, transfer, assign, .pledge, encumber, charge or
u the rwi&e dh,po&e of any right to benefit& payable hereunder,
G J l be voi d. The Trust ghall not. in any manne r be liable for,
,n s u bjec t to, the debts, contracts, liabilities. engagements or
t.o rt.s of any perso n entitled to benefits hereunder .
NC\t withstanding the above, amounts may be paid from a
P t\r ticipa n t' s accounts pursuant to a court order requiring
d e d uctions from a Participant's benefit payments hereunder, but
'-n l y if such deduction& are for alimcmy o r child suppo rt and only
if the Participant I s benefit payme nts have commenced under the
te rrr.s of the Pl an.
14.04 Non forfeitability of Benefits . Sub j eet onl y to the speci f ic
provisions of thi s Pl an. nothing shal l be deeme d to dive s t a
Participant of hi s/he r rig ht to the Nonforfeitabl e Interest to
"''h i ch he /s he becomes entitled in accordance with the provisions
of t he Plan.
14.05 Incompeten c y of Pa.yee . In the event any benefit is payable to a
minor or incompetent, to a person o therwise under legal
disability. or to a person who, in the s o le judgeme nt of the .
Employer, i& by reason of advanced age. illness. or other
phy6ical or snental incapacity incapable of handling the
disposition of his/her propery, the Emplo)>er inay ap ·•y the wh o le
or any part of guch bene~it d i rectly to the care, < fort,
niaintenanc~. 5upport, education, or use of such pers on or pay or
distribute the whole or any part of such benefit t o:
(a) The pare n t of &uch per son;
(bl . The guardian, CC'mmitt.ee, or othe r legol re present ati ve . or
other legal representative, where ver appointed, of such
pcr6on ;
l e} The per son wit h whom such pe rs o n resi de~;
(d } Any person ha v ing the care a nd c ontro l of 1>uch pcrson i or
fe} Such pe r st•n pe rE-onolly.
1h~ r e ce i ~t o f the· pe r son t o wht,m a ny su ch payment
,.:..,-.--------------------ICMA Re11reme111 Corporation-· ,
dh.tribution i • •o rnade shell be full end complete dir,charge
therefor .
14.06 Inability to Loeate Payee. Anything to the contk'ary herein
notwith,tanding, if the E.mplC"yer ii unable, after reasonable
effort, to locate any Participant or Beneficiary to who1n an
amount is payable hereunder, such amount 1hall be forfeited and
held in the Trust for application again•t the next aucceeding ·
Employer contribution or contributions required to be siade
hereunder. Notwithstanding the foregoing, however, auch a mount
&hall be rein&tated, by rneana of an additional Employer
contribution, if and when a claim for the forfeited amount is
&ubsequently made by the Participant or Beneficiory or if the
Employer receives proof of d e ath of such person, aatiafactory to
the Employer. Any benefits lost by reason of es c heat under
app licable state law ghall be congidered for feited and &hall not
be reinstated.
14.07 :1 ergers, Consolidationc . and Transfers of Assets. The Plan st\all
not be merged intt'I or consolida ... ed with any other plan.
14.08 Employer Records. Rect1rds of the Employ,?r as to an Employee's or
Participant 's Period of Service. termination of service and the
reas o n there fo r, leaves of absence, reemp loyment, Earnirir1s and
Co mpe n s ation will b e con c lusive on all persons, unless c. ermined
t o be i n corre ct.
14 .09 Commo nly Co ntr o lled Employer s. For all p u rposes of th i s "l an,
t.h e ter m Emp l o ye r s ha l l include:
(a) All corpo ration s that are members of a controlled groUp of
corporations (within the me aning of Code Seciotn 1563(al,
determined "1ithout regard to Code Section 1563(a) (4) and
(el (31 (Cl I that include& the Employeri and
(b) All t rades or businesses (whether or not incorporated) that
are under common control (within the meaning of Code Section
414(cl) with the Employer,
14.10 Gender ""d Number. The snasculine pronoun, whenever used herein,
shall ir1clude the feminine pronoun, and the aingular &hall
include ·~h e plural, except where the context require& otherwise.
14.11 l\pplicable La w. The Plan shall be con s trued under the laws of
t he State ~here the Employer is located and is established with
the intent t~~': it meets the requireme .,ts as a Honey Purch o s e
Plen under Se c tion 40 l (a) of the Code . The provisio ns of this
P ia n E.hall b e inte rprete d whenever p o £sible in conformity with
t he r eq uir ements o f t he Co de .
2 6
THIS AGREEMENT is intended by the unde_rsigned to be a
conlract binding on and inuring to the benefit of the parties
her eto , their members, employees, administrators, successors and
assigns.
Th e parties are the City of Englewood (hereinafter "the
Cit y ") , by its Mayor and with the approval of the City Council , and
the Englewood Police Association ("the Association"), by its duly
elec ted a nd authorized representative.
This Agreement is effective upon the date of the last to
affix hi s or her signature hereon and is enforceable by c ivil
action fo r declar atory judgment, injunctive relie.', and any and a 1
damages a nd other relief of any kind available in the District
Cour t of the County of Arapahoe pursuant to the Colorado Revised
Stat utes and the Co lorado Rules of Civil Procedure. The contract
is therein enforceable and is binding upon the parties during any
period after the effective date, which peri od does not violate any
applicable rule against perp~tuities.
Tt,e pa rties , in consideration of the mutual covenants and
stipu l a tions set out herein, agree as foll ow s:
Secti on I -----
ThE parties ha v e desi r ed to withdraw police officers of the
City of Englewood hired after April 8, 1978 from the Fire a nd
Police Pe nsion Ass ocia tion (FPP/\) and to join them in a new).y
establi shed money pur c has e plan,
The mon ey purchase plan shall o,, t he ICMA Ret.ir ement
Corpo ration Prototype Money Purchase Pla~ and Trust (hereinafter
"Pla n and Trust"), a nd the parti e s hereb;, ag r ee to tak e all
nece s s a~y steps to establish suc h a plan.
Section Ill
Th e parties hereby agree and stipulate that the Englewo od
Home Rule Char t er co nclusively pcr,1ies and sets forth tha t the
ICM A Retireme n t Cor pora tion Money Purch~se Pla 11 an J Trust is st ate
regu l ated a s t hat ter m is used iri th e Home Rule Charter, Se ctio n 137:5 .
Sect io n I V
The parties her eb y ag re e and stipulate that the ~ng l ewood
Hom o Hu le Cha rter conclusively provides and sets fort h th at the
I CMA Het ireruent Co rpo ra t ion Mo ney Purch a se Plan and TrJs t is a
non -n ~1oti 1b le sub j e..:t o( collective b argaini ng .
.,
Sectio n V
Th e parties hereby waive all right, if an y , pursuant to the
Englewood Home Rule Charter and/or Colorado Re vised Statutes, to
mak e an y claim or allegation to each othe r or in any forum
what ever that the Plan and Trust is a negotiable subject of
collective bargaining.
Section VI
Th e parties hereby contractually bind the mselves and each
othe r and agree that, even to the exte nt that the Englewood Home
Rul e Charter and/or Colorado Rev ised Statutes do not control or
have a ny effect , the Pl.an and Trust is a no n-negotiable s u bject
of colle ctive bargaining.
Sect ion VII
Th e parties here by wa ive al l r i ght , if any , no matt e r how
created or based , to make any claim or alleg ation t o each other
or in an y for um whateve r that the Pl a n and Trust is a negotiable
s ubject o f c ollective bargaining .
Se ction VIII
Th e part i es expressly bind the ir me mbe rs , em pl oyees and
g overnir.g bodies , representatives and office r s t o t he t erms of
th is agreemen t.
SO AGREED.
Engl ewoo d Po lice Associat ion
By _______ _,,P~r~e~s-1-d~e-n~t--
Date,
City of Englewood
By --.,c-=-,--,--,----,,,-,-,--,----,,,,,-,,,.,,..,,,--Eu gene L. Otis , Mayor
Date :