HomeMy WebLinkAbout2003 11 10 Regular 501 Resolution 2003-44 City Pension Plan
111003_ COMM _Regular_50 I_Approval]ension ]Iari _Resolution
Page I of3
COMMISSION AGENDA
ITEM 501
Consent
Information
Public Hearin2
Re~ular X
November 10. 2003
Meeting
MGR. ;1---/Dept.
REQUEST: City Manager requesting the Commission to approve the City Pension Plan
Resolution Number 2003-44.
PURPOSE:
This agenda item is needed to approve Pension Plan Documents incorporated in Resolution
Number 2003-44 for administration of the City's Defined Benefit Pension Plan,
CONSIDERA TIONS:
Prior to October 1, 2001 the City had a hybrid Defined BenefitJDefined Contribution (Floor Off
Set) Pension Plan.
During the year 2000 the City employees voted to adopt a full Defined Benefit Plan effective
October 1, 2000.
On December 9, 2002 the City Commission was presented with a revised set of pension
documents in Resolution 2002-39 for administration of the Defined Benefit Plan, The
Commission voted to delay approval of the resolution to incorporate suggested amendments,
On January 27,2003 agenda items H-l, H-2, H-3, H-4, and H-5 incorporating the issues raised at
the December 9,2003 meeting were presented to the Commission for approval as follows:
H-l Recommending the benchmark earnings rate for employee contributions remain at the
thirty-year treasury rate.
H-2 Confirming that the thirty-year benefit period begin with the initial date of employment
and is not floating, and recommending that this provision of the pension documents be
sustained,
H-3 a) Confirming that the cash out provisions of the plan documents are automatic rather
than elective and recommending that the automatic cash out provisions be sustained.
b) Confirming that the 2% annuity and 3% annuity are aggregated, and if the total does
not exceed $3,500 it is automatically distributed, and that the language in the pension
document be amended to clarify this point.
H-4 Recommending that contribution rates and plan assumptions remain unchanged until the
completion of fiscal period 2003.
H-5 Provided a detailed discussion of Section 12, providing for employees to purchase service
in other governmental units on a full actuarial basis; and Section 4, providing employees
who were not able to be included in the Defined Benefit Plan due to unique legal
complications (City Manager, Police Chief) to past service under the pension plan by
making the same contributions as other employees
These items were deleted from the January 27,2003 agenda for future consideration.
On July 21, 2003 the City Commission accepted recommendations of the City Actuaries to
reduce the earnings assumptions on contributions from 9% to 8% and to increase the retirement
age assumption from age 55 to 60, and incorporated those recommendations in the FY 04 Budget
approved by the Commission on September 22, 2003 completing action on item H-4 above.
Resolution 2003-44 addresses the issues contained in H-1, H-2, H-3, and H-5 as follows:
Changes the benchmark earnings rate for employee contributions from the published
thirty-year treasury rate to the published U.S. Department of Treasury Long Term (25
year) average rate until such time that a new recommended benchmark is recommended
and published by the Treasury Department as presented in H-1
Clarifies the provision that the thirty-year benefit period begins on the initial date of
employment and is not floating as presented in H-2
Clarifies the automatic cash-out provisions of the plan documents and clarifies that cash
out provisions of the 2% annuity and 3% annuity are aggregated, and if the total does not
exceed $3,500 it is automatically distributed as provided in H-3
Retains the provisions of Section 4 and Section 12 providing for the buy-in of prior
governmental service as provided in H-5.
FUNDING: No additional funding or increase in pension contribution rates are required to
implement Resolution 2003-44.
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The City Manager and Police Chief will be required to begin paying 11 % of their current
compensation into the fund plus a one time amount equal to the employee contribution amounts
they would have paid into the plan had they been paying into the plan from their initial date of
employment.
RECOMMENDA TIONS: It is recommended that the Commission approve Resolution 2003-
44 as amended.
ATTACHMENTS:
1, Summary of Plan Changes
2. Resolution Number 2003-44,
3. Revised Plan Documents
4, July 21, 2003 Workshop Minutes
5, January 27,2003 Commission Agenda Item (B-1, B-2, B-3, B-4, B-5) (without
attachments); and Minutes.
6. December 9,2002 regular Agenda Item "C" (without attachments); and Minutes.
COMMISSION ACTION:
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SUMMARY
OF
PLAN CHANGES
CITY OF WINTER SPRINGS
SUMMARY OF RETIREMENT PLAN CHANGES
11/3/03
1. Plan Merger (Effective 10/1/00)
A. Money Purchase Plan merged into Defined Benefit Plan.
B. Money Purchase Plan abolished.
C. Participant accounts and all other assets of the Money Purchase Plan
transferred to the Defined Benefit Plan, Participant accounts will be
available for distribution to the employee upon retirement. Participant
accounts earn interest at a rate equal to the 3D-year Treasury bond
rate, and effective October 1, 2003, the V,S. Treasury Department
long-term average rate or such other rate that may be approved by the
V.S, Treasury Department.
2. Excluded Employees - excluded employees include those whose customary
weekly employment is less than 29 hours, and those who participate in
another qualified plan maintained by the City (other than the Money Purchase
Pension Plan), A participant who becomes an excluded employee does not
accrue benefits attributable to the period he is excluded, but will receive credit
for vesting. An excluded employee who is not a plan participant but becomes
eligible will become a participant immediately upon satisfaction of eligibility
conditions, and years of service during the period the employee was excluded
will be credited for vesting,
3. City Contributions - the City makes such contributions as are required to
fund the plan on a sound actuarial basis, in accord with state law,
4. Employee Contributions - employees contribute 3% of compensation to the
retirement plan. Employee contributions are "picked up" by the City (i.e., they
are deducted from the employee's pay and paid to the retirement plan in pre-
tax dollars).
5. Benefit Formula - for service prior to 10/1/00, 2% of average compensation
multiplied by years of service, For service on and after 10/1/00, 3% of
average compensation multiplied by years of service, counting forward from
the date of initial participation in the Plan.
6. Lump Sum Payments - If the present value of a participant's benefit is less
than $3,500, the full amount will automatically be paid in a lump sum.
7. Year of Accrual Service - amended to provide for the purchase of prior
service with a federal, state or local government agency, provided the
employee pays the full actuarial cost of such service and will not receive a
benefit for such service under another pension plan. Also allows any
employee who has prior service with the City but did not make contributions
to the Money Purchase Plan or the Defined Benefit Plan to obtain credited
service under the Defined Benefit Plan by paying the required participant
contributions due under both plans for such service.
8. Floor-Offset Arrangement - repealed (this is the provision that reduced a
member's benefit under the defined benefit plan by the value of the benefit
accrued under the money purchase plan; since the money purchase plan has
been abolished, this provision is no longer needed).
9. 100% Vesting of Employee Contributions - employee contributions to the
defined benefit plan are 100% vested, and employees are entitled to receive a
refund of their employee contributions, plus interest at the 30-year Treasury
bond rate, and effective October 1,2003, the V,S. Treasury Department long-
term average rate or such other rate that may be approved by the V.S,
Treasury Department, upon termination of employment. Such a refund of
contributions is in lieu of any other benefit under the plan.
10. Rollover of Distributions -- the plan is amended to permit eligible rollover
distributions to be paid directly to an eligible rollover retirement plan, The
plan is also amended to provide for acceptance of rollover of an eligible
distribution from a qualified plan.
11. Miscellaneous - the plan is amended to incorporate vanous technical
amendments suggested by the City's former counsel.
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RESOLUTION NUMBER
2003-44
1113//03
RESOLUTION NO. 2003-44
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
WINTER SPRINGS, FLORIDA, MERGING THE MONEY PURCHASE
PENSION PLAN AND TRUST FOR EMPLOYEES OF THE CITY OF
WINTER SPRINGS INTO THE DEFINED BENEFIT PLAN AND TRUST
FOR EMPLOYEES OF THE CITY OF WINTER SPRINGS; AMENDING
THE WITNESSETH CLAUSE TO PROVIDE THAT THE RESTATED
DEFINED BENEFIT PLAN IS EFFECTIVE OCTOBER 1, 1997;
AMENDING ARTICLE I OF THE DEFINED BENEFIT PLAN TO
CLARIFY THE DEFINITION OF "EMPLOYEE"; AMENDING ARTICLE
II OF THE DEFINED BENEFIT PLAN TO DEFINE EMPLOYEES
EXCLUDED FROM THE PLAN AND TO PROVIDE FOR THE
INCLUSION OF EMPLOYEES WITH NON-CONTRIBUTING YEARS OF
SERVICE UNDER CERTAIN CIRCUMSTANCES; AMENDING
ARTICLE III OF THE DEFINED BENEFIT PLAN TO PROVIDE FOR
CITY CONTRIBUTIONS IN AN AMOUNT NECESSARY TO FUND THE
PLAN ON A SOUND ACTUARIAL BASIS, TO CLARIFY THE
LIMITATION ON ANNUAL BENEFITS, TO PROVIDE FOR USE OF
MORTALITY TABLES TO DETERMINE ACTUARIAL EQUIVALENTS,
TO CLARIFY THE MAXIMUM PERMISSIBLE AMOUNT OF ANNUAL
ADDITIONS, TO PROVIDE FOR A DEFINITION OF "APPLICABLE
MORTALITY TABLE", AND TO ELIMINATE SECTION 3.07;
AMENDING ARTICLE IV OF THE DEFINED BENEFIT PLAN TO
PROVIDE FOR A THREE PERCENT CONTRIBUTION BY
PARTICIPANTS, TO PROVIDE FOR DIRECT TRANSFER OF
ELIGIBLE ROLLOVER DISTRIBUTIONS, TO PROVIDE FOR THE
"PICK-UP" OF P ARTICIP ANT CONTRIBUTIONS BY THE
EMPLOYER, TO PROVIDE FOR THE TRANSFER OF THE
P ARTICIP ANT ACCOUNT BALANCE FROM THE MONEY PURCHASE
PENSION PLAN TO THE DEFINED BENEFIT PLAN AND TRUST, AND
TO PROVIDE FOR THE DISTRIBUTION OF SUCH ACCOUNT
BALANCE UPON NORMAL RETIREMENT; AMENDING ARTICLE V
OF THE DEFINED BENEFIT PLAN TO PROVIDE A THREE PERCENT
BENEFIT MULTIPLIER FOR SERVICE AFTER OCTOBER 1, 2000,
REVISING PROVISIONS RELATED TO ACCRUAL YEAR OF
SERVICE, AND DELETING THE FLOOR-OFFSET ARRANGEMENT;
AMENDING ARTICLE VI OF THE DEFINED BENEFIT PLAN TO
MODIFY THE AMOUNT PAYABLE TO A P ARTICIP ANT IN A LUMP
SUM UPON EARLY RETIREMENT; AMENDING ARTICLE VIII OF
THE DEFINED BENEFIT PLAN TO MODIFY THE AMOUNT OF DEFERRED VESTED PENSION PAYABLE TO A PARTICIPANT IN A
LUMP SUM, CREATING A NEW SECTION 8.05(B) TO PROVIDE FOR
ONE HUNDRED PERCENT VESTING OF REQUIRED PARTICIPANT
CONTRIBUTIONS, AND MAKING TECHNICAL AMENDMENTS;
AMENDING ARTICLE IX OF THE DEFINED BENEFIT PLAN TO
MODIFY THE AMOUNT PAYABLE IN A LUMP SUM TO A
PARTICIPANT'S SURVIVOR; AMENDING ARTICLE X OF THE
DEFINED BENEFIT PLAN TO MODIFY THE AMOUNT OF
NONFORFEITABLE ACCRUED BENEFIT ABOVE WHICH A
P ARTICIP ANT MUST CONSENT IN WRITING FOR ANY
DISTRIBUTION, AND MODIFYING THE AMOUNT OF ACCRUED
BENEFIT, NORMAL RETIREMENT BENEFIT, AND DEATH BENEFIT
PAYABLE TO A PARTICIPANT IN A LUMP SUM; AMENDING
ARTICLE XI OF THE DEFINED BENEFIT PLAN TO PERMIT THE
TRUSTEES TO ACCEPT TRANSFER OF ASSETS IN THE MONEY
PURCHASE PENSION PLAN; PROVIDING FOR CONFLICTS;
PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City Commission approved certain changes to the City's retirement
program for employees in July 2000 and September 2001; and
WHEREAS, the changes to the retirement program approved by the City Commission
require merging the Money Purchase Pension Plan and Trust for Employees of the City of
Winter Springs Plan and Trust with the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs, and amending provisions of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF WINTER SPRINGS, FLORIDA:
Section 1.
A. That the Money Purchase Pension Plan and Trust for Employees ofthe City of Winter
Springs be merged into the Defined Benefit Plan and Trust for the Employees of the City of
Winter Springs, effective October 1, 2000.
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B. That the Money Purchase Plan and Trust for Employees of the City of Winter Springs
cease to exist as of October 1,2000.
C. That upon the merger of the two plans, all participant accounts and all other assets of
the Money Purchase Plan and Trust for Employees of the City of Winter Springs, together with
earnings and interest thereon, be transferred to and become an integral part of the Defined
Benefit Plan and Trust for Employees of the City of Winter Springs; provided that said
participant accounts shall be available for distribution as permitted by the Defined Benefit Plan
and Trust for Employees of the City of Winter Springs.
Section 2.
That the Witnesseth Clause of the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs be amended as follows:
The City of Winter Springs establishescontinues, within this Trust Agreement, a
Plan for the administration and distribution of contributions made by the Employer for
the purpose of providing retirement benefits for eligible Employees. This Plan is an
amended plan, in restated form, the original plan being effective October 1. 1997 and this
restated Plan is also effective October 1. 1997 (except to the extent otherwise provided
herein). The provisions of this Plan apply solely to an Employee whose employment
with the Employer terminates on or after the Effective Date of the Plan. If an Employee's
employment with the Employer terminates prior to the Effective Date, that Employee is
not entitled to any benefit under the Plan.
Section 3.
That Section 1.06 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
1.06 "Employee" means any employee of the Employer. Individuals who
perform services for the Employer in any capacity other than as an Employee, determined
pursuant to the books and records of the Employer (e.g., independent contractors or
leased employees within the meaning of Code & 414(n), even if such individuals are
reclassified as Employees by any governmental agency (other than the Employer) or
iudicial decision), are not Employees for purposes of the Plan, and thus, are not eligible
to participate in the Plan.
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Section 4.
That Section 2.01 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
2.01 Eligibility. Each Employee (other than an Excluded Employee) becomes
a Participant in the Plan on the first day of the month (if employed on that date)
immediately following the date 6 months after his Employment Commencement Date.
"Employment Commencement Date" means the date on which the Employee first
performs an Hour of Service for the Employer.
(A) Excluded Employee
(1) An Employee is an Excluded Employee if his customary weekly
employment with the Employer is less than 29 hours. An Employee is an
Excluded Employee if he is actively participating (and "benefiting" within the
meaning of Treas. Reg. & 1.41 O(b )-3) in another qualified plan maintained by the
Employer other than the Money Purchase Pension Plan and Trust for Employees
of the City of Winter Springs, Florida (hereinafter referred to as the "Money
Purchase Plan").
(2) If a Participant has not incurred a Separation from Service but becomes an
Excluded Employee, then during the period such a Participant is an Excluded
Employee, the Participant will not accrue a benefit under the Plan attributable to
any period during which he is an Excluded Employee. However, during such
period of exclusion, the Participant. without regard to employment classification,
continues to receive credit for vesting under Article VIII for each included Year
of Service.
(3) If an Excluded Employee who is not a Participant becomes eligible to
participate in the Plan bv reason of a change in employment classification, he will
participate in the Plan immediately if he has satisfied the eligibilitv conditions of
SectiOn 2.01 and would have been a Participant had he not been an Excluded
Employee during his period of Service. Furthermore, the Plan takes into account
all of the Participant's included Years of Service with the Employer as an
Excluded Employee for purposes of vesting credit under Article VIII.
(B) Employees with Non-Contributing Service. Any Employee who completed Years
of Service prior to adoption of Resolution No. , but did not make contributions to this
Trust Fund or to the Money Purchase Plan, shall be credited with Years of Accrual
Service upon payment of the Required Participant Contributions due under this Plan and
the required participant contributions due under the Money Purchase Plan for such
servIce.
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Section 5.
That Section 3.01 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
3.01 Amount.
(A) The Employer alone will make the contributions required to fund the cost of the
benefits pro'/ided by this Plan. The Employer intends to make such contributions as are
necessary to fund the Plan on a sound actuarial basis, in accordance with applicable law.
(B) The Employer contributes to this Plan on the condition its contribution is not due
to a mistake of fact. The Trustee, upon written request from the Employer, must return to
the Employer the amount of the Employer's contribution made by the Employer by
mistake of fact. The Trustee will not return any portion of the Employer's contribution
under the provisions of this paragraph more than one year after the Employer made the
contribution by mistake of fact. Furthermore, the Trustee will not increase the amount of
the employer contribution returnable under this Section 3.01 for any earnings attributable
to the contribution, but the Trustee will decrease the Employer contribution returnable for
any losses attributable to it.
Section 6.
That Section 3.05 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
3.05 Limitation on Annual Benefit. A Participant's Annual Benefit payable at
any time within a Limitation Year may not exceed the limitations of this Section 3.05,
even if the benefit formula under the Plan would produce a greater Annual Benefit.
* * * * * * * * * *
(B) Commencement prior to age 62. If a Participant's Annual Benefit commences
prior to his attaining age 62, the Retirement Committee will adjust the $90,000 (or the
larger adjusted dollar amount) limitation of this Section 3.05 to the Actuarial Equivalent
of an Annual Benefit equal to such dollar limitation commencing at age 62. The
Actuarial Equivalent under the immediately preceding sentence may not be less than
$75,000 in the event a Participant's Annual Benefit commences at or after age 55. In the
event a Participant's Annual Benefit commences prior to age 55, the Actuarial Equivalent
will equal the greater of (1) the Actuarial Equivalent of a $75,000 Annual Benefit
commencing at age 55 or (2) the Actuarial Equivalent of a $90,000 (or larger adjusted
dollar amount) Annual Benefit commencing at age 62. To determine the Actuarial
Equivalent under this paragraph, the Retirement Committee will use an interest rate
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assumption equal to the greater of 5% per annum or the rate specified in Section 1.12 and
the Applicable Mortality Table.
(C) Commencement after age 65. If a Participant's Annual Benefit commences after
his attaining age 65, the Retirement Committee will adjust the $90,000 (or larger adjusted
dollar amount) limitation of this Section 3.05 to the Actuarial Equivalent of an Annual
Benefit equal to such dollar limitation commencing at age 65. To determine the
Actuarial Equivalent under this paragraph, the Retirement Committee will use an interest
rate assumption equal to the lesser of 5% per annum or the rate specified in Section 1.12
and the Applicable Mortality Table.
* * * * * * * * * *
(E) Adjustment for Years of ServiceIY ears of Participation Less Than 10. The
maximum j\nnual Benefit$90,000 (or such larger adiusted dollar amount) limitation
described in this Section 3.05 applies to a Participant who has completed at least 10
Years of Service with the Employer, for purposes of the 100% average Compensation
limitation and has eompleted at least 10 Years of Participation in the Plan, for purposes of
the dollar limitation. If a Participant has less than 1 0 Years of Service with the Employer
at the time benefits oommence, the Retirement Committee will multiply his 100%
a';erage Compensation limitatioFl by a fraction, the numerator of which is the number of
Years of Service (including fractional years) with the Employer and the denominator of
which is 10. If a Participant has less than 1 0 Years of Participation "in the Plan at the time
his benefits commence, the Retirement Committee will multiply his dollar limitation by a
fraction, the numerator of which is the number of Years of Participation (including
fractional years) in the Plan and the denominator of which is 10. The reductions
described in this paragraph will not reduce a Participant's maximum .^Jlnual Benefitdollar
limitation to less than one-tenth of the maximum Annual Benefitdollar limitation
determined without regard to the reductions.
(F) Alternate Forms of Payment. If the Trustee pays the Participant's benefit in a
form other than an Annual Benefit, the benefit paid may not exceed the Actuarial
Equivalent of the maximum Annual Benefit payable as a straight life annuity. To
determine the Actuarial Equivalent under this paragraph, the Retirement Committee will
use an interest rate assumption equal to the greater of 5% per annum or the rate specified
in Section 1.12 and the Applicable Mortality Table.
Section 7.
That Section 3.06 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
3.06 Definitions - Article III. The definitions in this Section 3.06 apply to the
limitation provisions of Part 2 of Article III. For purposes of Article III, the following
terms mean:
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(A) General Definitions.
**********
(4) Annual Addition. Annual Additions are the following amounts allocated
on behalf of a Participant for a Limitation Year, under a defined contribution plan
maintained by the Employer: (i) all Employer contributions; (ii) all forfeitures;
and (iii) all Employee contributions. Except to the extent provided in Treasury
regulations, Annual Additions include excess contributions described in Code
~401(k), excess aggregate contributions described in Code ~401(m), irrespective
of whether the plan distributes or forfeits such excess amounts. Excess deferrals
under Code ~402(g) are not Annual Additions unless distributed after the
correction period described in Code ~402(g). Amounts allocated after March 31,
1984, to an individual medical account (as defined in Code ~415(l)(2)) included
as part of a defined benefit plan maintained by the Employer also are Annual
Additions. Furthermore, Annual Additions include contributions paid or accrued
after December 31, 1985, for taxable years ending after December 31, 1985,
attributable to post-retirement medical benefits allocated to the separate account
ofa key employee (as defined in Code ~419A(d)(3)) under a welfare benefit fund
(Code ~419(e)) maintained by the Employer. For a Limitation Year, the Annual
Additions allocated on behalf of any Participant, to all defined contribution plans
maintained by the Employer, may not exceed the Maximum Permissible Amount.
The "Maximum Permissible Amount" is the lesser of (I) $30,000 (or, if greater,
one fourth of the defined benefit dollar limitation$30,000 amount as adjusted
under Code ~415(b)(1 )(}..)g), or (II) 25% of the Participant's Compensation for
the Limitation Year. If there is a short Limitation Year because of a change in
Limitation Year, the Retirement Committee will multiply the $30,000 limitation
(or larger limitation) on Annual Additions by the following fraction:
Number of months in the short Limitation Year
12,.
(5) Year of Service. .\ Plan Year during which an Employee completes at
least 1,000 Hours of Applicable Mortality Table. The Applicable Mortality Table
means the mortality table specified in Code & 417(e)(3) and set forth in Revenue
Ruling 95-6 (or any applicable subsequent pronouncement issued by Internal
Revenue Service.
Section 8.
That Section 3.07 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be eliminated.
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Section 9.
That Section 4.01 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
4.01 Participant Contributions. The Plan does not permit nor require Partioipant
contributions. Required Participant Contributions. The Plan did not permit nor require
Participant Contributions prior to October 1. 2000. Effective October 1. 2000, each
Participant is required to contribute 3% of Compensation to the Plan, which contribution
shall be considered the Required Participant Contribution. The required participant
contribution shall be deducted from each Participant's Compensation whenever such
Compensation is paid, and remitted to the Trustee. Required participant contributions
shall be considered an Employer "pick-up" contribution and shall be designated as
employer contributions pursuant to Section 414(h) of the Internal Revenue Code,
contingent upon the contributions being excluded from the Participant's gross income for
federal income tax purposes. For all other purposes of this Plan, such contributions shall
be considered Participant contributions.
Section 10.
That Section 4.02 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
4.02 Partioipant Rollover Contributions. The Plan does not permit Partioipant
rollover contributionsDirect Transfers of Eligible Rollover Distributions.
(A) General. This section applies to distributions made on or after October 1, 2002.
Notwithstanding any provision of the plan to the contrary that would otherwise limit a
distributee's election under this section, a distributee may elect. at the time and in the
manner prescribed by the board, to have any portion of an eligible rollover distribution
paid directly to an eligible retirement plan specified by the distribute in a direct rollover.
(B) Definitions.
(I) "Eligible rollover distribution" is any distribution of all or any portion of
the balance to the credit of the distributee, except that an eligible rollover
distribution does not include: any distribution that is one of a series of
substantially equal periodic payments (not less frequently than annually) made for
the life (or life expectancy) of the distribute or the joint lives (or joint life
expectancies) of the distribute and the distributee's designated Beneficiary, or for
a specified period of ten years or more: any distribution to the extent such
distribution is required under section 401(a)(9) of the Code: and the portion of
any distribution that is not includible in gross income. Any portion of any
distribution which would be includible in gross income will be an eligible rollover
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distribution if the distribution is made to an individual retirement account
described in section 408(a), to an individual retirement annuity described in
section 408(b) or to a qualified defined contribution plan described in section
401(a) or 403(a) that agrees to separately account for amounts so transferred,
including separately accounting for the portion of such distribution which is not
so includible.
(2) "Eligible retirement plan" is an individual retirement account described in
section 408(a) of the Code, an individual retirement annuity described in section
408(b) of the Code, an annuity plan described in section 403(a) of the Code, an
eligible deferred compensation plan described in section 457(b) of the Code
which is maintained by an eligible employer described in section 457(e)(I)(A) of
the Code and which agrees to separately account for amounts transferred into such
plan from this plan, an annuity contract described in section 403(b) of the Code,
or a qualified trust described in section 401(a) of the Code, that accepts the
distributee's eligible rollover distribution. This definition shall also apply in the
case of an eligible rollover distribution to the surviving spouse.
(3) "Distributee" includes an employee or former employee. In addition, the
employee's or former employee's surviving spouse is a distributee with regard to
the interest of the spouse.
(4) "Direct rollover" is a payment by the plan to the eligible retirement plan
specified by the distributee.
(C) Rollovers or Transfers into the Fund. On or after the effective date of Resolution,
the fund will accept member rollover cash contributions and/or direct cash rollovers of
distributions for the purchase of permissive service credit under the Plan, as follows:
(I) Direct Rollovers or Member Rollover Contributions from Other Plans.
The Plan will accept either a direct rollover of an eligible rollover distribution or a
member contribution of an eligible rollover distribution from a qualified plan
described in section 403(a) of the Code, from an annuity contract described in
section 403(b) of the Code, or from an eligible plan under section 457(b) of the
Code, which is maintained by a state, political subdivision of a state, or any
agency or instrumentality of a state or political subdivision of a state.
(2) Member Rollover Contributions from 401(a) Plans and IRAs. The Plan
will accept a member rollover contribution of the portion of a distribution from
qualified plan described in section 401(a) of the Code, or from an individual
retirement account or annuity described in section 408( a) or 408(b) of the Code,
that is eligible to be rolled over and would otherwise be includible in the
member's gross income.
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Section 11.
That a new Section 4.03 of the Defined Benefit Plan and Trust for Employees of the City
of Winter Springs be created to read as follows:
4.03 Participant Account Balance Transferred from Money Purchase Pension
Plan. A Participant's account balance transferred from the Money Purchase Pension Plan
and Trust for Employees of the City of Winter Springs pursuant to Resolution No.
shall become an integral part of this Trust Fund; provided that such account balance, plus
interest at a rate equal to the interest rate on 30-year Treasury securities as published in
the Internal Revenue Bulletin determined as of the calendar month preceding the first day
of the Plan year, and effective October 1. 2003, a rate equal to the U.S. Treasury
Department long-term average rate published on the last day of the calendar month
preceding the first day of the Plan year, or such other rate that may be approved by the
U.S. Treasury Department to replace the 30-vear Treasury bond rate as a benchmark for
calculating lump sum payouts from defined benefit plans, shall be available for
distribution to a Participant upon normal retirement.
Section 12.
That Section 5.02 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
5.02 Amount of Normal Retirement Pension/Accrued Benefit. The Annual
Benefit limitations of Article III apply to the determination of a Participant's normal
retirement pension and Accrued Benefit in the manner prescribed in Section 3.05(H).
(A) Normal Retirement Pension.
(1) Benefit Formula. A Participant's normal retirement pension equals 2% of
the Participant's Average Compensation multiplied by his Years of Accrual
Service for service prior to October 1. 2000, and 3% of the Participant' s Average
Compensation multiplied by his Years of Accrual Service for service on and after
October 1, 2000. The maximum number of Years of Accrual Service taken into
account in the normal retirement pension is 30, counting forward from the date of
initial participation.
(2) Average Compensation. Average Compensation is the average of the
Participant's Plan Compensation for the Averaging Period in the Participant's
Compensation History which results in the highest Average Compensation. A
Participant's Compensation History is the Participant's entire period of
employment with the Employer. The Averaging Period is 3 consecutive
Compensation periods (or the entire period of employment, if shorter). A
10
Compensation period is the 12-month period ending on the last day of the Plan
Year.
(B) Accrued Benefit. Subject to the Annual Benefit limitations of Article III, a
Participant's Accrued Benefit is the normal retirement pension accrued by the Participant
under the accrual formula provided in this paragraph (B).
(1) Method of Accrual. As of any date, a Participant's Accrued Benefit is his
normal retirement pension calculated as of the determination date, based on the
Years of Accrual Service credited as of such date.
(2) Year of Accrual Service. Years of Accrual Service are Years of Service as
determined under Section 8.06, including Years of Service completed prior to his
participation in the Plan. Any Employee who completed Years of Service prior to
the adoption of Resolution No. but did not make contributions to this Trust
Fund or to the Money Purchase Pension Plan shall be credited with Years of
Accrual Service upon payment of the Required Participant Contributions due
under this Plan and the required participant contributions due under the Money
Purchase Pension Plan for such service. Years of Accrual Service also include
"Years of Oualified Service". Years of Oualified Service means any or all years
of service performed by the Participant as an employee of the Government of the
United States, any State or political subdivision thereof or any agency or
instrumentality of any of the foregoing, other than the Employer, but only if all of
the following conditions are satisfied:
(a) the Participant makes a voluntary contribution to the Plan, in an amount
necessary to fund the benefit attributable to such Years of Oualified Service (as
determined by the actuary for the Plan, utilizing the actuarial definitions at 1.12)
and which does not exceed the amount necessary to fund the benefit attributable
to such Years of Oualified Service:
(b) the Participant makes the voluntary contribution described in paragraph
(a) above, in one lump sum payment to the Plan prior to receiving credit for such
Years of Qualified Service;
(c) the Participant's Accrued Benefit is either 100% Nonforfeitable at the time
he makes the voluntary contribution described in paragraph (a) above or will
become 100% Nonforfeitable immediately after receiving credit for such Years of
Qualified Service: and
(d) the crediting of such Years of Qualified Service must not cause the
Participant to receive a retirement benefit for the same Years of Oualified Service
under more than one retirement plan.
(3). Floor offset arrangement. The Employer also maintains the Money Purchase
Pension Plan and Trust for Employees of the City of\Vinter Springs, Florida (the "Money
11
Purchase Plan") and the Participants in this Plan also participate in the Money Purchase
Plan. The Retirement Committee 'NiB reduoe the Partioipant's '^1ccrued Benefit in this
Plan by the Actuarial Equivalent benefit derived from the portion of the Participant's
';ested acoount balanoe in the Money Purohase Plan attributable to employer
contributions and required participant contributions made pursuant to the terms of the
Money Purchase Plan (including any distributions and/or direot transfers made from the
account balance of suoh Participant prior to the benefit commencement date under this
Plan). The interest rate used to determine the '^1ctuarial Equivalent benefit derived from
the Money Purchase Plan is the rate specified in Section 1.12 of this Plan. '^1 mortality
assumption will not apply to determine the Actuarial Equivalent of distributions and/or
direct transfers made from the Participant's account balanoe in the Money Purchase Plan
nor to determine the '^1ctuarial Equivalent benefit from the Participant's vested acoount
balance in the Money Purchase Plan for the period prior to the benefit commencement
date under this Plan.
Section 13.
That Section 6.01 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
6.01 Eligibility for Early Retirement Pension. A Participant who has received
credit for at least 10 Years of J\ecrual Service (as defined in Section 8.06)and has
attained age 55 may elect an early retirement pension. A Participant who separates from
service after satisfying the service requirement but not the age requirement may elect to
receive an early retirement pension upon satisfying the age requirement. In addition, a
Participant who has completed 25 Years of .^1corual Service (as defined in Section 8.06)
may elect an early retirement pension. A Participant's early retirement pension is his
Nonforfeitable Accrued Benefit payable at Normal Retirement Date without actuarial
reduction for early commencement but only if benefits commence on or after the
Participant attains age 55. If an eligible Participant elects to commence his early
retirement pension prior to attaining age 55, such Participant's early retirement pension is
the Actuarial Equivalent of his Nonforfeitable Accrued Benefit payable at age 55.
Section 14.
That Section 6.02 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
6.02 Payment of Early Retirement Pension.
(aA) If the present value of the Participant's early retirement pension does not exceed
$~3,500, the Trustee will automatically pay the early retirement pension in lump
sum, as soon as administratively practicable after the Participant's Separation from
12
Service or, if later, after the Participant satisfies the eligibility requirements for an early
retirement pension.
(bB) If the present value of the Participant's early retirement pension exceeds
$~3,500, the Trustee will pay the early retirement pension in the form and as of the
date elected by the Participant. A participant may elect to commence his early retirement
pension as of the first day of any month during the period he is eligible for the early
retirement pension and after he has separated from Service. If the Participant fails to
designate a distribution date, then the Trustee will commence payment of the early
retirement pension in accordance with Article X.
Section 15.
That Section 8.03 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
8.03 Payment of Deferred Vested Pension.
(aA) If the present value of the Participant's deferred vested pension does not exceed
$~3,500, the Trustee will automatically pay the deferred vested pension in lump sum,
as soon as administratively practicable following the Participant's Separation from
Service. In no event may the distribution occur later than the 60th day following the
close of the Plan Year in which the Participant attains Normal Retirement Age.
(bB) If the present value of the Participant's deferred vested pension exceeds
$~3.500, the Trustee will pay the deferred vested pension in the form elected by the
Participant. A Participant may elect to commence his deferred vested pension after the
Participant's Normal Retirement Date. If the Participant fails to elect a distribution date,
then the Trustee will commence payment of the deferred vested pension in accordance
with Article X.
Section 16.
That a new Section 8.05(B) of the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs be created to read as follows:
8.05 Vesting Schedule.
**********
(B) 1 00% Vesting of Required Participant Contributions. Each Participant is
immediately 100% vested with respect to his Required Participant Contributions. A
Participant is entitled to receive a return of his Required Participant Contributions upon
termination of employment. together with simple interest at a rate equal to the interest
13
rate on 30-year Treasury secunbes as published in the Internal Revenue Bulletin
determined as of the calendar month preceding the first day of the Plan year, and
effective October 1. 2003, a rate equal to the U.S. Treasury Department long-term
average rate published on the last day of the calendar month preceding the first day of the
Plan year, or such other rate that may be approved by the U.S. Treasury Department to
replace the 30-year Treasury bond rate as a benchmark for calculating lump sum payouts
from defined benefit plans, in lieu of any other benefit under the Plan. In the event a
Participant dies while employed by the City, his Beneficiary shall be entitled to receive
his Required Participant Contributions, together with simple interest at a rate equal to the
interest rate on 30-year Treasury securities as published in the Internal Revenue Bulletin
determined as of the calendar month preceding the first day of the Plan year, and
effective October 1. 2003, a rate equal to the U.S. Treasury Department long-term
average rate published on the last day of the calendar month preceding the first day of the
Plan year, or such other rate that may be approved by the U.S. Treasury Department to
replace the 30-year Treasury bond rate as a benchmark for calculating lump sum payouts
from defined benefit plans, in lieu of any other benefit under the Plan.
Section 17.
That subsections (B), (C), and (D) of Section 8.05 of the Defined Benefit Plan and Trust
for Employees of the City of Winter Springs be redesignated as subsections (C), (D), and (E)
respectively, and that the first sentence of redesignated Section 8.05(C) is amended as follows:
8.05(BC) Vesting Schedule. Subject to Section 8.05(A) and Section 8.05(B), a
Participant's nonforfeitable percentage of his Accrued Benefit equals the percentage in
the following schedule:
Section 18.
That Section 8.08 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
8.08 Included Years of Service - Vesting. For purposes of determining "Years
of Service" under Section 8.06, the Plan takes into account all Years of Qualified Service
credited to a Participant pursuant to Section 5.02(B) and all Years of Service an
Employee completes with the Employer except:
(aA) Any Year of Service completed before a Break in Service, unless the Employee
completes a Year of Service after the Break in Service. This Break in Service rule will
not operate to recredit any Year of Service disregarded under clause (bB).
14
(aB) Any Year of Service completed before a Break in Service if the number of the
Participant's consecutive Breaks in Service equals of exceeds the greater of 5 or the
aggregate number of the Years of Service prior to the Break. This Break in Service rule
applies only if the Participant is 0% vested in his Accrued Benefit derived from Employer
contributions at the time he has a Break in Service. Furthermore, the aggregate number
of Years of Service before a Break in Service does not include any Years of Service not
required to be taken into account under this exception by reason of any prior Break in
Service. If the Retirement Committee Retirement Committee disregards the Participant's
Years of Service under this exception, the Plan forfeits his pre-Break in Service Accrued
Benefit.
(eC) Any Year of Service before the Plan Year in which the Participant attained the
age of 18.
Section 19.
That subsections (B) and (C) of Section 9.01 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
9.01 Preretirement Survivor Annuity - Eligibility. If a married Participant dies
prior to his annuity starting date, the Retirement Committee will direct the Trustee to
distribute to the Participant's surviving spouse a preretirement survivor annuity, unless
the Participant has a valid waiver election (as described in Section 9.02) in effect, or
unless the Participant and his spouse were not married throughout the one year period
ending on the date of his death.
* * * * * * * * * *
(B) Present Value Not Greater Than $~3,500. If the present value of the
preretirement survivor annuity is not greater than $~3.500, the Trustee will
automatically make the distribution in a lump sum, in lieu of the preretirement survivor
annuity. The distribution must occur on or before the annuity starting date.
(C) Surviving Spouse Elections. If the present value of the preretirement survivor
annuity exceeds $~3,500, the Participant's surviving spouse may elect to have the
Trustee commence payment of the preretirement survivor annuity as of the first day of
any month following the Participant's death, but not later than the applicable mandatory
distribution period described in Article X. A surviving spouse also may elect any form of
payment described in Article X, in lieu of the preretirement survivor annuity (other than a
joint and survivor annuity). In the absence of an election by the surviving spouse, the
15
Retirement Committee will direct the Trustee to distribute the preretirement survivor
annuity as soon as administratively practicable following the close of the Plan Year in
which the latest of the following events occurs: (1) the Participant's death; (2) the date the
Retirement Committee receives notification of or otherwise confirms the Participant's
death; or (3) the date the Participant would have attained Normal Retirement Age.
Section 20.
That subsection (A) of Section 10.01 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
10.01 Form of Benefit. Subject to the requirements of Section 10.02, the
Retirement Committee will direct the Trustee to pay a Participant his Nonforfeitable
Accrued Benefit in a form permitted under Section 10.05. Annuity payments will
continue until the last scheduled payment coincident with or immediately preceding the
date of the Participant's death or, if applicable, the date of his survivor's death.
(A) Consent. A Participant must consent, in writing, to any distribution described in
this Article X if the present value of the Participant's Nonforfeitable Accrued Benefit
exceeds $~3.500, and the distribution commences prior to the Participant's attaining
Normal Retirement Age. Furthermore, the Participant's spouse also must consent, in
writing, to any distribution for which Section 10.02 requires the spouse's consent. For
purposes of the consent requirements under this Article X, if the present value of the
Participant's Nonforfeitable Accrued Benefit, at the time of any distribution, exceeds
$~3,500, the Retirement Committee will treat that present value as exceeding
$~3.500 for purposes of all subsequent Plan distributions to the Participant.
Section 21.
That subsection (B) of Section 10.02 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
10.02 Qualified Joint and Survivor Annuity.
* * * * * * * * * *
(B) Present Value Not Greater Than $~3,500. If the present value of the
Participant's Accrued Benefit is not greater than $~3,500, the Trustee will
automatically pay the Participant's pension in a lump sum, in lieu of a qualified joint and
survivor annuity. The distribution must occur on or before the annuity starting date. The
consent requirements of this Article X do not apply to a Participant subject to this
paragraph.
Section 22.
16
That subsections (B) and (E) of Section 10.03 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
10.03 Commencement of Benefits. The Retirement Committee must direct the
Trustee to commence distribution of benefits in accordance with this Section 10.03,
subject to the mandatory distribution requirements of Section 10.06.
* * * * * * * * * *
(B) Distribution to Participant Who Separates from Service After Normal Retirement
Date. The Retirement Committee will direct the Trustee to commence distribution to the
Participant:
(1) Present Value of Normal Retirement Pension Not Exceeding $~3,500.
In lump sum, as soon as administratively practicable following the Participant's
separation from Service, but not later than the 60th day following the close of the
Plan Year in which that separation from Service occurs.
(2) Present Value of Normal Retirement Pension Exceeds $~3,500. In the
form and at the time elected by the Participant, as permitted under this Article X.
The Participant may elect to commence distribution as soon as administratively
practicable following separation from Service or as of the first day of any
subsequent month.
**********
(E) Death of the Participant. If the Participant had commenced distribution prior to
his death, the Retirement Committee will direct the Trustee to make distribution to the
Participant's Beneficiary in accordance with the distribution method in effect at the time
of death. If the deceased Participant had not commenced distribution, the Retirement
Committee will direct the Trustee to distribute the Participant's death benefit in
accordance with paragraph (1) or paragraph (2), whichever applies, subject to the
requirements of Article IX.
(1) Present Value of Death Benefit Does Not Exceed $~3,500. In lump
sum, as soon as administratively practicable following the date on which the
Retirement Committee receives notification of or otherwise confirms the
Participant's death.
(2) Present Value of Death Benefit Exceeds $~3,500. In the form and at
the time elected by the Participant or, if applicable by the Beneficiary, as
permitted under this Article X. Unless otherwise elected by the Participant and to
the extent permitted under Section 10.06, a Beneficiary may elect to commence
distribution of the Participant's death benefit as of the first day of any month
following the date the Retirement Committee receives notification of or otherwise
17
confirms the Participant's death. In addition to the other forms of distribution
available under this Article X, and to the extent permitted under Section 10.06, a
Beneficiary may elect to receive the Participant's death benefit in monthly,
quarterly or annual installments over a 5 year period, unless the Participant
elected otherwise. In the absence of an election, the Retirement Committee will
direct the Trustee to distribute the Participant's death benefit in five annual
installment payments commencing as soon as administratively practicable
following the end of the Plan Year that the Retirement Committee receives
notification of or otherwise confirms the Participant's death.
Section 22.
That the first paragraph of Section 10.07 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
10.07 Distributions Under Domestic Relations Orders. Nothing contained in this
Plan will prevent the Trustee, in accordance with the direction of the Retirement
Committee, from complying with the provisions of a qualified domestic relations order
(as defined in Code ~414(P)). The Retirement Committee may adopt any written
procedures relating to a qualified domestic relations order which the Retirement
Committee deems necessary for proper administration of the Plan. This~ Plan
specificallydoes not permits distribution to an alternate payee under a qualified domestic
relations order at any time, irrespective of whetheruntil the Participant has-attained~ his
earliest retirement age (as defined under Code ~414(p))under the Plan. '^1 distribution to
an alternate payee prior to the Participant's attainment of earliest retirement age is
available only if: (1) the order specifies distribution at that time or permits an agreement
between the Plan and the alternate payee to authorize an earlier distribution; and (2) if the
present value of the alternate payee's benefits under the Plan exoeeds $5,000, and the
order requires, the alternate payee consents to any distribution ocourring prior to the
Participant's attainment of earliest retirement age. Nothing in this Section 10.07 permits
a Participant a right to receive distribution at a time otherwise not permitted under the
Plan nor does it permit the alternate payee to receive a form of payment not permitted
under the Plan.
Section 23.
That the first paragraph of Section 11.05 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
11.05 Merger/Direct Transfers. The Trustee will not consent to, or be a party to,
any merger or consolidation with another plan, or to a transfer of assets or liabilities to
another plan, unless immediately after the merger, consolidation or transfer, the surviving
Plan provides each Participant a benefit equal to or greater than the benefit each
Participant would have received had the Plan terminated immediately before the merger
18
or consolidation or transfer. The Trustee possesses the specific authority to enter into
merger agreements or direct transfer of assets agreements with the trustees of other
retirement plans described in Code ~401(a), and to accept the direct transfer of plan
assets, or to transfer plan assets, as a party to any such agreement. If the Trustee accepts
a transfer of assets from other retirement plans described in Code ~401(a) (other than the
Money Purchase Plan) on behalf of a Participant, the Trustee shall utilize such assets to
provide additional Accrued Benefits for such Participant. The Trustee possesses the
specific authority to accept a transfer of assets of all or any portion of a Participant's
account in the Money Purchase Plan.
Section 24.
That this resolution shall supersede any and all conflicting provisions of any previously
adopted resolutions.
Section 25.
That should any section or provision of this resolution or any portion thereof, any
paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such
decision shall not affect the validity of the remainder hereof as a whole or part thereof other than
the part declared to be invalid.
Section 26.
That this resolution shall take effect as of October 1, 2000.
PASSED and ADOPTED this _ day of
, 2002.
MA YOR
ATTEST:
CITY CLERK
19
REVISED
PLAN DOCUMENT
DEFINED BENEFIT PLAN AND TRUST
FOR
EMPLOYEES OF THE
CITY OF WINTER SPRINGS
11/3/03 Revision
T ABLE OF CONTENTS
ARTICLE I - DEFINITIONS
1.01 "Plan"
1.02 "Employer"
1.03 "Trustee"
1.04 "Plan Administrator"
1.05 "Retirement Committee"
1.06 "Employee"
1.07 [Reserved]
1.08 "Participant"
1.09 "Beneficiary"
1.10 Compensation Definitions
1.11 "Accrued Benefit"
1.12 Actuarial Definitions and Related Rules.
1.13 "Plan Entry Date"
1.14 "Plan Year"
1.15 "Effective Date"
1.16 "Nonforfeitable"
1.17 "Accounting Date"
1.18 "Trust"
1.19 "Trust Fund"
1.20 "Nontransferable Annuity"
1.21 [Reserved]
1.22 "Code"
1.23 "Service"
1.24 Definitions and Special Rules Relating to Hours of Service
1.25 "Disability"
1.1
1.1
1.1
1.1
1.1
1.1
1.1
1.1
1.1
1.1
1.2
1.3
1.3
1.3
1.4
1.4
1.4
1.4
1.4
1.4
1.4
1.4
1.4
1.4
1.4
1.6
ARTICLE II - EMPLOYEE PARTICIPANTS
2.01 Eligibility
2.02 Break in Service - Eligibility
2.03 Participation upon Re-employment
2.1
2.1
2.1
2.1
ARTICLE III - EMPLOYER CONTRIBUTIONS
3.01 Amount
3.02 Determination of Contribution
3.03 Time of Payment of Contribution
3.04 Nonvested Accrued Benefit
3.05 Limitation on Annual Benefit
3.06 Definitions - Article III
3.07 Overall Limitations
3.1
3.1
3.1
3.1
3.1
3.1
3.3
3.6
ARTICLE IV - P ARTICIP ANT CONTRIBUTIONS 4.1
4.01 Participant Contributions 4.1
4.02 Participant Rollover Contributions 4.1
4.03 Participant Contributions Transferred from Money Purchase Pension Plan 4.1
ARTICLE V - NORMAL RETIREMENT BENEFIT 5.1
5.01 Normal Retirement Age/Normal Retirement Date 5.1
5.02 Amount of Normal Retirement Pension/Accrued Benefit 5.1
5.03 Normal Form of Benefit 5.2
5.04 Late Retirement 5.2
ARTICLE VI - EARLY RETIREMENT PENSION 6.1
6.0 I Eligibility for Early Retirement Pension 6.1
6.02 Payment of Early Retirement Pension 6.1
ARTICLE VII - DISABILITY PENSION 7.1
7.01 Disability Pension 7.1
ARTICLE VIII - DEFERRED VESTED PENSION - DEATH BENEFIT 8.1
8.01 Deferred Vested Pension 8.1
8.02 Amount of Deferred Vested Pension 8.1
8.03 Payment of Deferred Vested Pension 8.1
8.04 Pre-Retirement Death Benefit 8.1
8.05 Vesting Schedule 8.1
8.06 Year of Service - Vesting 8.2
8.07 Break in Service - Vesting 8.3
8.08 Included Years of Service - Vesting 8.3
8.09 Disregard of Accrued Benefit 8.3
ARTICLE IX - PRERETIREMENT SURVIVOR ANNUITY 9.1
9.01 Preretirement Survivor Annuity - Eligibility 9.1
9.02 Waiver Election - Preretirement Survivor Annuity 9.1
9.03 Reduction of Pension Benefits 9.2
ARTICLE X - PAYMENT OF ACCRUED BENEFIT - OPTIONAL FORMS OF
PAYMENT 10.1
10.01 Form of Benefit . 10.1
10.02 Qualified Joint and Survivor Annuity 10.2
10.03 Commencement of Benefits 10.2
10.04 Waiver Election - Qualified Joint and Survivor Annuity 10.4
10.05 Optional Forms of Distribution 10.4
10.06 Mandatory Distributions 10.5
10.07 Distributions Under Domestic Relations Orders 10.9
11
ARTICLE XI - MISCELLANEOUS PROVISIONS AFFECTING THE PAYMENT OF
BENEFITS 11.1
11.01 General 11.1
11.02 Nonduplication of Benefits 11.1
11.03 [Reserved] 11.1
11.04 No Disregard of Service 11.1
11.05 Merger/Direct Transfers 11.1
ARTICLE XII - OTHER PROVISIONS AFFECTING BENEFITS 12.1
12.01 Assignment or Alienation 12.1
12.02 [Reserved] 12.1
12.03 [Reserved] 12.1
12.04 Distribution Upon Termination of Trust 12.1
12.05 Overfunding 12.1
ARTICLE XIII - EMPLOYER ADMINISTRATIVE PROVISIONS 13.1
13.01 Information to Committee 13.1
13.02 No Liability 13.1
13.03 Indemnity of Plan Administrator and Committee 13.1
ARTICLE XIV - PARTICIPANT ADMINISTRATIVE PROVISIONS 14.1
14.01 Beneficiary Designation 14.1
14.02 No Beneficiary Designation/Death of Beneficiary 14.1
14.03 Personal Data to Committee 14.1
14.04 Address for Notification 14.1
14.05 Notice of Change in Terms 14.2
14.06 Litigation Against the Trust 14.2
14.07 Information Available 14.2
14.08 Appeal Procedure for Denial of Benefits 14.2
ARTICLE XV - RETIREMENT COMMITTEE - DUTIES WITH RESPECT TO
PARTICIPANTS' ACCRUED BENEFITS 15.1
15.01 Members' Compensation, Expenses 15.1
15.02 Term 15.1
15.03 Powers 15.1
15.04 General 15.1
15.05 Funding Policy 15.2
15.06 Manner of Action 15.2
15.07 Authorized Representative 15.2
15.08 Interested Member 15.2
15.09 Participant Records 15.2
15.10 Unclaimed Accrued Benefit - Procedure 15.2
ARTICLE XVI - TRUSTEE, POWERS AND DUTIES 16.1
16.01 Acceptance 16.1
III
16.02 Receipt of Contributions 16.1
16.03 Investment Powers 16.1
16.04 Records and Statements 16.3
16.05 Fees and Expenses From Fund 16.3
16.06 Parties to Litigation 16.3
16.07 Professional Agents 16.3
16.08 Distribution Directions 16.4
16.09 Third Party/Multiple Trustees 16.4
16.10 Resignation 16.4
16.11 Removal 16.4
16.12 Interim Duties and Successor Trustee 16.4
16.13 Valuation of Trust. 16.5
16.14 Limitation on Liability - If Investment Manager, Ancillary Trustee or
Independent Fiduciary Appointed 16.5
16.15 Investment in Group Trust Fund / Combined Trust 16.5
ARTICLE XVII - INVESTMENT IN INSURANCE OR ANNUITY CONTRACTS
17.01 Purchase of Life Insurance and Annuity Contracts
17.1
17.1
ARTICLE XVIII - MISCELLANEOUS
18.0 I Evidence
18.02 No Responsibility for Employer Action
18.03 Fiduciaries Not Insurers
18.04 Waiver of Notice
18.05 Successors
18.06 Word Usage
18.07 State Law
18.08 Employment Not Guaranteed
18.1
18.1
18.1
18.1
18.1
18.1
18.1
18.1
18.1
ARTICLE XIX - EXCLUSIVE BENEFIT, AMENDMENT, TERMINATION
19.01 Exclusive Benefit
19.02 Amendment By Employer
19.03 Discontinuance
19.04 Full Vesting on Termination
19.05 Termination
19.1
19.1
19.1
19.1
19.2
19.2
Article A - Appendix to Plan and Trust Agreement
Execution Page
19.3
19.4
IV
Defined Benefit Plan and Trust for
Employees of the City of Winter Springs
The City of Winter Springs, a municipality incorporated under the laws of the State of
Florida, makes this Agreement with the Board of Trustees of the City of Winter Springs, as Trustee.
WITNESSETH:
The City of Winter Springs establishescontinues, within this Trust Agreement, a Plan for the
administration and distribution of contributions made by the Employer fDr the purpose of providing
retirement benefits for eligible Employees. This Plan is an amended plan, in restated form, the
original plan being effective October I, 1997 and this restated Plan is also effective October I, 1997
(except to the extent otherwise provided herein). The provisions of this Plan apply solely to an
Employee whose employment with the Employer terminates on or after the Effective Date of the
Plan. If an Employee's employment with the Employer terminates prior to the Effective Date, that
Employee is not entitled to any benefit under the Plan.
Now, therefore, in consideration of their mutual covenants, the Employer and the Trustee
agree as follows:
ARTICLE I - DEFINITIONS
1.01 "Plan" means the retirement plan established by the Employer in the form of this
Agreement, designated as the Defined Benefit Plan and Trust for Employees of the City of Winter
Springs.
1.02 "Employer" means the City of Winter Springs.
1.03 "Trustee" means the Board of Trustees of the City of Winter Springs, or any successor
in office who in writing accepts the position of Trustee.
1.04 "Plan Administrator" is the Employer unless the Employer designates another person
to hold the position of Plan Administrator. In addition to his other duties, the Plan Administrator has
full responsibility for compliance with any reporting and disclosure rules applicable to the Plan.
1.05 "Retirement Committee" means the Board of Trustees ofthe City of Winter Springs,
or any successor who in writing accepts the position of the Retirement Committee.
1.06 "Employee" means any employee of the Employer. Individuals who perform services
for the Employer in any capacity other than as an Employee, determined pursuant to the books and
records of the Employer (e.g., independent contractors or leased employees within the meaning of
Code & 414(n), even ifsuch individuals are reclassified as Employees by any governmental agency
(other than the Employer) or iudicial decision), are not Employees for purposes of the Plan, and thus,
are not eligible to participate in the Plan.
1.1
1.07 [Reserved]
1.08 "Participant" is an Employee who is eligible to be and becomes a Participant in
accordance with the provisions of Section 2.01.
1.09 "Beneficiary" is a person designated by a Participant or by the Plan who is or may
become entitled to a benefit under the Plan. A Beneficiary who becomes entitled to a benefit under
the Plan remains a Beneficiary under the Plan until the Trustee has fully distributed his benefit to
him. A Beneficiary's right to (and the Plan Administrator's, the Retirement Committee's or a
Trustee's duty to provide to the Beneficiary) information or data concerning the Plan does not arise
until he first becomes entitled to receive a benefit under the Plan.
1.10 Compensation Definitions. Any reference in this Plan to Compensation is a reference
to the definition in this Section 1.10, unless the Plan reference specifies a modification to this
definition. The Retirement Committee will take into account only Compensation actually paid for the
relevant period.
(A) Total Compensation. "Total Compensation" means wages, salaries, and other amounts
received (whether or not paid in cash) for personal services actually rendered in the course of
employment with the Employer, but only to the extent included in gross income. This definition
includes, but is not limited to commissions, overtime pay and bonuses. With respect to the Plan
Years beginning prior to October 1, 1998, Total Compensation does not include elective
contributions. With respect to Plan Years beginning on and after October 1, 1998, Total
Compensation includes elective contributions. Total Compensation also does not include:
(1) Employer contributions to a plan of deferred compensation to the extent the
contributions are not included in the gross income of the Employee for the taxable year in
which contributed, on behalf of an Employee to a Simplified Employee Pension Plan to the
extent such contributions are excludible from the Employee's gross income, and any
distributions from a plan of deferred compensation, regardless of whether such amounts are
includible in the gross income of the Employee when distributed.
(2) Other amounts which receive special tax benefits, such as premiums for group term
life insurance (but only to the extent that the premiums are not includible in the gross income
of the Employee), or contributions made by an Employer towards the purchase of an annuity
contract described in Code ~403(b) (whether or not the contributions are excludible from the
gross income of the Employee).
(B) Plan Compensation. Plan Compensation means Total Compensation described in Section
1.10(A), except that Plan Compensation includes elective contributions for all Plan Years. Plan
Compensation applies to determine a Participant's benefit formula and Accrued Benefit under Article
V.
(C) Elective Contributions. Elective contributions are amounts excludible from the Employee's
gross income under Code ~~125, 402(e)(3), 402(h) or 403(b), and contributed by the Employer, at
1.2
the Employee's election, to a Code 9401 (k) arrangement, a Simplified Employee Pension, cafeteria
plan or tax-sheltered annuity. Elective contributions also include: (1) Compensation deferred under a
Code 9457 plan maintained by the Employer; and (2) Employee contributions "picked up" by the
Employer and, pursuant to Code ~414(h)(2), treated as Employer contributions.
(D) Limitations on Compensation.
(1) Compensation Limitation. For any Plan Year beginning after December 31, 1995, the
Retirement Committee must take into account no more Plan Compensation than the
Compensation Limitation prescribed by Code ~401 (a)(17). The Compensation Limitation is
$150,000 for the 1996 Plan Year. For Plan Years beginning after December 31, 1996, the
Compensation Limitation is the adjusted dollar amount determined in accordance with Code
~401(a)(17).
The Compensation Limitation in effect for any Plan Year (or for any 12-month
Compensation period) is the Compensation Limitation in effect at the beginning ofthat Plan
Year (or other 12-month period). For a Plan Year (or other Compensation measuring period)
ofless than 12 months, the Compensation Limitation is a prorated dollar amount, determined
by multiplying the Compensation Limitation by a fraction equal to the number of months in
the short period divided by 12.
(2) Average Compensation. When determining Average Compensation for a Plan Year
beginning after December 31, 1995, Compensation for any prior Compensation period is
subject to the Compensation Limitation in effect for that prior Compensation period, using
$150,000 as the Compensation Limit in effect for any prior Compensation period.
1.11 "Accrued Benefit" means the benefit determined under Article V.
1.12 Actuarial Definitions and Related Rules.
(A) Definitions.
(1) "Actuarial Equivalent" means a benefit of equal value computed by using the
following assumptions, subject to the requirements of this Section 1.12:
Pre- Retirement Interest: 8%
and Mortality: 1983 Group Annuity Mortality Table, Male Rates
Post-Retirement Set Back Two Years for Females
(2) "Present value" means the single sum Actuarial Equivalent of the Participant's
Accrued Benefit.
(3) "Actuary" means an enrolled actuary selected by the Retirement Committee to
provide actuarial services for the Plan.
1.3
(B) Interest Rate. When determining the amount of a Participant's distribution or the present
value of the Participant's Accrued Benefit, the interest rate used to make an Actuarial Equivalent
determination is the applicable interest rate specified in Section 1.12(A).
1.13 "Plan Entry Date" means the date(s), specified in Section 2.01.
1.14 "Plan Year" means the fiscal year ofthe Plan, a 12 consecutive month period ending
every September 30.
1.15 "Effective Date" of this Plan is October I, 1997.
1.16 "Nonforfeitable" means a Participant's or Beneficiary's unconditional claim, legally
enforceable against the Plan, to the Participant's Accrued Benefit.
1.17 "Accounting Date" is the first day of the Plan Year.
1.18 "Trust" means the separate Trust created under the Plan.
1.19 "Trust Fund" means all property of every kind held or acquired by the Trustee under
the Plan.
1.20 "Nontransferable Annuity" means an annuity which by its terms provides that it may
not be sold, assigned, discounted, pledged as collateral for a loan or security for the performance of
an obligation or for any purpose to any person other than the insurance company. If the Trustee
distributes an annuity contract, the contract must be a Nontransferable Annuity.
1.21 [Reserved]
1.22 "Code" means the Internal Revenue Code of 1986, as amended.
1.23 "Service" means any period of time the Employee is in the employ ofthe Employer,
including any period the Employee is on an unpaid leave of absence authorized by the Employer
under a uniform, nondiscriminatory policy applicable to all Employees. "Separation from Service"
means a separation from Service with the Employer maintaining this Plan.
1.24 Definitions and Special Rules Relating to Hours of Service
(A) Definition of Hours of Service. "Hour of Service" means:
(1) Each Hour of Service for which the Employer, either directly or indirectly, pays an
Employee, or for which the Employee is entitled to payment, for the performance of duties.
The Retirement Committee credits Hours of Service under this paragraph (1) to the
Employee for the computation period in which the Employee performs the duties,
irrespective of when paid;
1.4
(2) Each Hour of Service for back pay, irrespective of mitigation of damages, to which
the Employer has agreed or for which the Employee has received an award. The Retirement
Committee credits Hours of Service under this paragraph (2) to the Employee for the
computation period(s) to which the award or the agreement pertains rather than for the
computation period in which the award, agreement or payment is made; and
(3) Each Hour of Service for which the Employer, either directly or indirectly, pays an
Employee, or for which the Employee is entitled to payment (irrespective of whether the
employment relationship is terminated), for reasons other than for the performance of duties
during a computation period, such as leave of absence, vacation, holiday, sick leave, illness,
incapacity (including disability), layoff, jury duty or military duty. The Retirement
Committee will credit no more than 501 Hours of Service under this paragraph (3) to an
Employee on account of any single continuous period during which the Employee does not
perform any duties (whether or not such period occurs during a single computation period).
(4) Each Hour of Service the Employee is on an unpaid leave of absence authorized by
the Employer under a uniform, nondiscriminatory policy applicable to all Employees under
which the Employer specifically credits Hours of Service for such unpaid leave of absence.
The Retirement Committee will not credit an Hour of Service under more than one of the
above paragraphs. A computation period for purposes of this Section 1.24 is the Plan Year, Year of
Service period, Break in Service period or other period, as determined under the Plan provision for
which the Retirement Committee is measuring an Employee's Hours of Service. The Retirement
Committee will resolve any ambiguity with respect to the crediting of an Hour of Service in favor of
the Employee.
(B) Method of Crediting Hours of Service. The Retirement Committee will credit every
Employee with Hours of Service on the basis of the "actual" method. For purposes of the Plan,
"actual" method means the determination of Hours of Service from records of hours worked and
hours for which the Employer makes payment or for which payment is due from the Employer.
(C) Maternity/Paternity Leave. Solely for purposes of determining whether the Employee incurs
a Break in Service under any provision of this Plan, the Retirement Committee must credit Hours of
Service during an Employee's unpaid absence period due to maternity or paternity leave. The
Retirement Committee considers an Employee on maternity or paternity leave if the Employee's
absence is due to the Employee's pregnancy, the birth of the Employee's child, the placement with the
Employee of an adopted child, or the care of the Employee's child immediatel y following the child's
birth or placement. The Retirement Committee credits Hours of Service under this paragraph on the
basis of the number of Hours of Service the Employee would receive if he were paid during the
absence period or, if the Retirement Committee cannot determine the number of Hours of Service the
Employee would receive, on the basis of 8 hours per day during the absence period. The Retirement
Committee will credit only the number (not exceeding 50 I) of Hours of Service necessary to prevent
an Employee's Break in Service. The Retirement Committee credits all Hours of Service described
in this paragraph to the computation period in which the absence period begins or, if the Employee
does not need these Hours of Service to prevent a Break in Service in the computation period in
1.5
which his absence period begins, the Retirement Committee credits these Hours of Service to the
immediately following computation period.
1.25 "Disability" means a physical or mental condition of a Participant permitting such
Participant to be eligible for disability benefits under the Employer's long term disability program.
* * * * * * * * * * * * * * *
1.6
ARTICLE II - EMPLOYEE PARTICIPANTS
2.01 Eligibility. Each Employee (other than an Excluded Employee) becomes a Participant
in the Plan on the first day of the month (if employed on that date) immediately following the date 6
months after his Employment Commencement Date. "Employment Commencement Date" means
the date on which the Employee first performs an Hour of Service for the Employer.
(A) Excluded Employee
(1) An Employee is an Excluded Employee ifhis customary weekly employment with the
Employer is less than 29 hours. An Employee is an Excluded Employee if he is actively
participating (and "benefiting" within the meaning of Treas. Reg, & 1.410(b)-3) in another
qualified plan maintained by the Employer other than the Money Purchase Pension Plan and
Trust for Employees of the City of Winter Springs, Florida (hereinafter referred to as the
"Money Purchase Plan").
(2) If a Participant has not incurred a Separation from Service but becomes an Excluded
Employee, then during the period such a Participant is an Excluded Employee, the
Participant will not accrue a benefit under the Plan attributable to any period during which he
is an Excluded Employee. However, during such period of exclusion, the Participant,
without regard to employment classification, continues to receive credit for vesting under
Article VIII for each included Year of Service.
(3) If an Excluded Employee who is not a Participant becomes eligible to participate in
the Plan by reason of a change in employment classification, he will participate in the Plan
immediately ifhe has satisfied the eligibility conditions ofSectoin 2.01 and would have been
a Participant had he not been an Excluded Employee during his period of Service.
Furthermore, the Plan takes into account all of the Participant's included Years of Service
with the Employer as an Excluded Employee for purposes of vesting credit under Article
VIII.
(B) Employees with Non-Contributing Service. Any Employee who completed Years of Service
prior to adoption of Resolution No. , but did not make contributions to this Trust Fund or to the
Money Purchase Plan, shall be credited with Years of Accrual Service upon payment of the Required
Participant Contributions due under this Plan and the required participant contributions due under the
Money Purchase Plan for such service.
2.02 Break in Service - Eligibility. For purposes of participation in the Plan, the Plan does
not apply any Break in Service rule.
2.1
2.03 Participation upon Re-employment. A Participant whose employment terminates will
re-enter the Plan as a Participant on the date of his re-employment. An Employee who satisfies the
Plan's eligibility conditions but who terminates employment with the Employer prior to becoming a
Participant will become a Participant on the later of the Plan Entry Date on which he would have
entered the Plan had he not terminated employment or the date of his reemployment. Any Employee
who terminates employment prior to satisfying the Plan's eligibility conditions becomes a Participant
in accordance with the provisions of Section 2.01.
* * * * * * * * * * * * * * *
2.2
ARTICLE III - EMPLOYER CONTRIBUTIONS
Part I. Determination of Employer's Contributions.
3.01 Amount.
(A) The Employer alone will make the contributions required to fund the cost of the benefits
provided by this Plan. The Employer intends to make such contributions as are necessary to fund the
Plan on a sound actuarial basis, in accordance with applicable law.
(B) The Employer contributes to this Plan on the condition its contribution is not due to a mistake
of fact. The Trustee, upon written request from the Employer, must return to the Employer the
amount of the Employer's contribution made by the Employer by mistake of fact. The Trustee will
not return any portion of the Employer's contribution under the provisions of this paragraph more
than one year after the Employer made the contribution by mistake of fact. Furthermore, the Trustee
will not increase the amount of the Employer contribution returnable under this Section 3.01 for any
earnings attributable to the contribution, but the Trustee will decrease the Employer contribution
returnable for any losses attributable to it.
3.02 Determination of Contribution. The Employer, from its records and the reports of
the Actuary, will determine the amount of any contribution to be made by it to the Trust under the
terms of the Plan. In this regard, the Employer may place full reliance upon all reports, opinions,
tables, valuations, certificates and computations the Actuary furnishes the Employer.
3.03 Time of Payment of Contribution. The Employer shall make its contribution to the
Trustee not less frequently than in quarterly installments. However, contributions shall be
considered timely ifpaid to the Trustee within 90 days ofthe date that such payments are due.
3.04 Nonvested Accrued Benefit. The Trustee will retain in the Trust all amounts
representing the nonvested Accrued Benefit of Participants who have terminated employment. The
Employer will not use forfeited benefits to increase the benefits of other Participants but instead will
use the amounts to reduce its contribution for future Plan Years.
Part 2. Limitations on Annual Benefits.
3.05 Limitation on Annual Benefit. A Participant's Annual Benefit payable at any time
within a Limitation Year may not exceed the limitations of this Section 3.05, even if the benefit
formula under the Plan would produce a greater Annual Benefit.
(A) Commencement between ages 62 and 65. A Participant's Annual Benefit payable at an age
not less that 62 nor greater than 65, may not exceed the lesser of $90,000 (or such larger dollar
amount as the Commissioner of Internal Revenue may prescribe) or 100% of the Participant's
average Compensation for his high 3 consecutive Years of Service.
3.1
(B) Commencement prior to age 62. If a Participant's Annual Benefit commences prior to his
attaining age 62, the Retirement Committee will adjust the $90,000 (or the larger adjusted dollar
amount) limitation of this Section 3.05 to the Actuarial Equivalent of an Annual Benefit equal to
such dollar limitation commencing at age 62. The Actuarial Equivalent under the immediately
preceding sentence may not be less than $75,000 in the event a Participant's Annual Benefit
commences at or after age 55. In the event a Participant's Annual Benefit commences prior to age 55,
the Actuarial Equivalent will equal the greater of (1) the Actuarial Equivalent of a $75,000 Annual
Benefit commencing at age 55 or (2) the Actuarial Equivalent of a $90,000 (or larger adjusted dollar
amount) Annual Benefit commencing at age 62. To determine the Actuarial Equivalent under this
paragraph, the Retirement Committee will use an interest rate assumption equal to the greater of 5%
per annum or the rate specified in Section 1.12 and the Applicable Mortality Table.
(C) Commencement after age 65. If a Participant's Annual Benefit commences after his attaining
age 65, the Retirement Committee will adjust the $90,000 (or larger adjusted dollar amount)
limitation of this Section 3.05 to the Actuarial Equivalent of an Annual Benefit equal to such dollar
limitation commencing at age 65. To determine the Actuarial Equivalent under this paragraph, the
Retirement Committee will use an interest rate assumption equal to the lesser of 5% per annum or
the rate specified in Section 1.12 and the Applicable Mortality Table.
(D) [Reserved].
(E) Adjustment for Years ofServicelY ears of Participation Less Than 10. The maximum f....~.nual
Benefit$90,000 (or such larger adiusted dollar amount) limitation described in this Section 3.05
applies to a Participant who has completed at least 10 Years of Service with the Employer, f{)r
purposes of the 100% average Compensation limitation and has completed at least 10 Years of
Participation in the Plan, for purposes of the dollar limitation. If a Partioipant has less than 1 0 Years
of Service \vith the Employer at the time benefits commence, the Retirement Committee \vill
multiply his 100% a';erage Compensation limitation by a fraction, the numerator of which is the
number ofY cars of Service (including fractional years) with the Employer and the denominator of
v/hich is 10. If a Participant has less than 10 Years of Participation in the Plan at the time his benefits
commence, the Retirement Committee will multiply his dollar limitation by a fraction, the numerator
of which is the number of Years of Participation (including fractional years) in the Plan and the
denominator of which is 10. The reductions described in this paragraph will not reduce a
Participant's maximum f.nnual Befiefitdollar limitation to less than one-tenth of the maximum
f..nnual Benefitdollar limitation determined without regard to the reductions.
(F) Alternate Forms of Payment. If the Trustee pays the Participant's benefit in a form other than
an Annual Benefit, the benefit paid may not exceed the Actuarial Equivalent of the maximum
Annual Benefit payable as a straight life annuity. To determine the Actuarial Equivalent under this
paragraph, the Retirement Committee will use an interest rate assumption equal to the greater of 5%
per annum or the rate specified in Section 1.12 and the Applicable Mortality Table.
(G) Adjustments to Dollar Limitation. Any adjustment to the dollar limitation of this Section 3.05
does not take effect until the first day of the calendar year for which the Commissioner ofInternal
Revenue publishes the adjustment. The new limitation will apply to the Limitation Year ending with
3.2
or within the calendar year for which the Commissioner of Internal Revenue makes the adjustment.
(H) Application of Limitations. A Participant's Accrued Benefit payable at any time may not
exceed the applicable limitation under this Section 3.05. The Retirement Committee will apply the
limitations of this Section 3.05 (as reduced, if applicable, by Section 3.07) to the calculation of the
Participant's normal retirement pension prior to determining the Participant's Accrued Benefit.
3.06 Definitions - Article 111. The definitions in this Section 3.06 apply to the limitation
provisions of Part 2 of Article 111. For purposes of Article 1lI, the following terms mean:
(A) General Definitions.
(1) Annual Benefit. The Participant's retirement benefit (including any portion of the
Participant's retirement benefit payable to an alternate payee under a qualified domestic
relations order satisfying the requirements of Code S414(p)) attributable to Employer
contributions payable in the form of a straight life annuity or a qualified joint and survivor
annuity, with no ancillary benefits (other than the survivor annuity).
(2) Compensation. Total Compensation, as determined under Section 1.1 O(A).
(3) Limitation Year. The Plan Year. If the Employer amends the Limitation Year to a
different 12 consecutive month period, the new Limitation Year must begin on a date within
the Limitation Year for which the Employer makes the amendment, creating a short
Limitation Year.
(4) Annual Addition. Annual Additions are the following amounts allocated on behalf of
a Participant for a Limitation Year, under a defined contribution plan maintained by the
Employer: (i) all Employer contributions; (ii) all forfeitures; and (iii) all Employee
contributions. Except to the extent provided in Treasury regulations, Annual Additions
include excess contributions described in Code ~401(k), excess aggregate contributions
described in Code s401(m), irrespective of whether the plan distributes or forfeits such
excess amounts. Excess deferrals under Code S402(g) are not Annual Additions unless
distributed after the correction period described in Code g402(g). Amounts allocated after
March 31, 1984, to an individual medical account (as defined in Code ~415(1)(2)) included as
part of a defined benefit plan maintained by the Employer also are Annual Additions.
Furthermore, Annual Additions include contributions paid or accrued after December 31,
1985, for taxable years ending after December 31, 1985, attributable to post-retirement
medical benefits allocated to the separate account of a key employee (as defined in Code
~419A(d)(3)) under a welfare benefit fund (Code ~419(e)) maintained by the Employer. For a
Limitation Year, the Annual Additions allocated on behalf of any Participant, to all defined
contribution plans maintained by the Employer, may not exceed the Maximum Permissible
Amount. The "Maximum Permissible Amount" is the lesser of (1) $30,000 (or, if greater,
one f{)urth ofthe defined benefit dollar limitation$30,000 amount as adiusted under Code
~415(b)(1)(^)g), or (II) 25% of the Participant's Compensation for the Limitation Year. If
there is a short Limitation Year because of a change in Limitation Year, the Retirement
3.3
Committee will multiply the $30,000 limitation (or larger limitation) on Annual Additions by
the following fraction:
Number of months in the short Limitation Year
12.,.
(5) Year of Service. ,^.. Plan Year during '....hich an Employee completes at least 1,000
Hours of Applicable Mortality Table. The Applicable Mortality Table means the mortality
table specified in Code & 417(e)(3) and set forth in Revenue Ruling 95-6 (or any applicable
subsequent pronouncement issued by Internal Revenue Service.
(6) Year of Participation. A Year of Participation is a Year of Accrual Service, as
determined under Section 5.02, but only if the Plan is in existence for such Year of
Participation and the Participant is a Participant in the Plan at least one day in that Year of
Participation. If the Participant receives credit for only a partial Year of Participation under
Section 1.11, he will receive credit for only a partial year for purposes of the limitations of
this Article III. For any other defined benefit plan taken into account, A Year of Participation
is each accrual computation period for which: (a) the Participant receives credit for at least
the number of hours of service (or period of service, ifthe plan uses elapsed time) necessary
to accrue a benefit for that accrual computation period; and (b) the eligibility conditions of
the plan include the Participant as a participant in that plan on at least one day of that accrual
computation period. If the Employee satisfies the conditions described in clauses (a) and (b),
he will receive credit for a Year of Participation (or a partial Year of Participation, if
applicable) equal to the amount of benefit accrual service (computed to fractional parts of a
year) credited under that plan for the accrual computation period. A Participant receives
credit for a Year of Participation under another defined benefit plan only if the plan was
established no later than the last day of the accrual computation period to which the Year of
Participation relates. The Participant will not receive credit for more than one Year of
Participation under this paragraph (6) with respect to the same 12-month period.
(7) Employer. The Employer that adopts this Plan and any employers aggregated with the
Employer pursuant to Code ~9414(b), 414(c), 414(m) or 414(0). Solely for purposes of
applying the limitations of this Article Ill, the Retirement Committee will determine the
aggregated employers by modifYing Code 9~414(b) and (c) in accordance with Code
~415(h).
(8) Defined Benefit Plan. A retirement plan which does not provide for individual
accounts for Employer contributions. The Retirement Committee must treat as a single plan
all defined benefit plans maintained by the Employer, whether or not terminated.
(9) Defined Contribution Plan. A retirement plan which provides for an individual
account for each participant and for benefits based solely on the amount contributed to the
participant's account, and any income, expenses, gains and losses, and any forfeitures of
accounts of other participants which the plan may allocate to such participant's account. The
Retirement Committee must treat as a single plan all defined contribution plans maintained
3.4
by the Employer, whether or not terminated. For purposes of the limitations of this Article
III, the Retirement Committee will treat employee contributions made to a defined benefit
plan (including this Plan) maintained by the Employer as a separate defined contribution
plan. The Retirement Committee also will treat as a defined contribution plan an individual
medical account (as defined in Code S415(1)(2)) included as part of a defined benefit plan
maintained by the Employer and, for taxable years ending after December 31, 1985, a welfare
benefit fund under Code S419( e) maintained by the Employer to the extent there are post-
retirement medical benefits allocated to the separate account of a key employee (as defined in
Code ~419 A( d)(3)).
(B) Definitions Relating to Defined Benefit and Defined Contribution Plan Limitation.
(1) Defined Benefit Plan Fraction. The defined benefit plan faction is the Participant's
Projected Annual Benefit divided by the Overall DB limitation.
(a) The "Projected Annual Benefit" means the annual retirement benefit (adjusted to an
actuarially equivalent straight life annuity if the plan expresses such benefit in a form other
than a straight life annuity or qualified joint and survivor annuity) of the Participant under the
terms of the defined benefit plan assuming he continues employment until his normal
retirement age (or current age, iflater) as stated in the defined benefit plan, his compensation
continues at the same rate as in effect in the Limitation Year under consideration until the
date of his normal retirement age and all other relevant factors used to determine benefits
under the defined benefit plan remain constant as of the current Limitation Year for all future
Limitation Years.
(b) The "Overall DB Limitation" is the lesser of (i) 125% ofthe dollar limitation in effect
under Code ~415(b)(1 )(A) for the Limitation Year, or (ii) 140% of the Participant's average
Compensation for his high 3 consecutive Years of Service. The Overall DB Limitation
assumes the Participant has at least I 0 Years of Service or the Retirement Committee will
have at least 10 Years of Service at Normal Retirement Age. To determine whether the
Participant will have at least 10 Years of Service, the Retirement Committee may include the
year in which the Participant reaches Normal Retirement Age, but only if it reasonable to
anticipate he will receive credit for a Year of Service in that year. If a Participant fails to
satisfy this I 0 Years of Service requirement, the Retirement Committee will reduce the
denominator of the Participant's Overall DB Limitation in the same manner as described
under Section 3.05(E) with respect to reductions for less than 10 Years of Service. If the
Participant's Current Accrued Benefit (as described in Section 3.05) exceeds the applicable
dollar limitation in effect under Code ~415(b)( I )(A), the Participant's Overall DB Limitation
may not be less than 125% of that Current Accrued Benefit.
(2) Defined Contribution Plan Fraction. The defined contribution plan fraction is the
Participant's Aggregate Annual Additions divided by the Overall DC Limitation.
(a) The "Aggregate Annual Additions" equal the sum, as ofthe close of the Limitation
Year, of the Annual Additions to the Participant's Account under the defined contribution
3.5
planes).
(b) The "Overall DC Limitation" is the sum of the lesser of the following amounts
determined for the Limitation Year and for each prior Year of Service with the Employer: (i)
125% of the dollar limitation in effect under Code S415(c)(l)(A) for the Limitation Year
(determined without regard to the special dollar limitations for employee stock ownership
plans), or (ii) 35% of the Participant's Compensation for the Limitation Year.
3.07 Overall Limitations.
(.^..) Defined Contribution Plan Limitation. If the Employcr maintains a defincd contribution plan
(as defined in Scction 3.06), or has ever maintained a defined contribution plan \.vhich the Employer
has terminated, then the sum of the defined benefit plan fraction and the defined contribution plan
fraction for any Participant for any Limitation Year must not exceed 1.0. The Employer 'Nill reducc
the projeoted annual bencfit under this Plan to the extent neccssary to satisfy this 1.0 limitation.
* * * * * * * * * * * * * * *
3.6
ARTICLE IV - PARTICIPANT CONTRIBUTIONS
4.01 Participant Contributions. The Plan docs not permit nor require Participant
oontributions. Required Participant Contributions. The Plan did not permit nor require Participant
Contributions prior to October I, 2000. Effective October 1, 2000, each Participant is required to
contribute 3% of Compensation to the Plan, which contribution shall be considered the Required
Participant Contribution. The required participant contribution shall be deducted from each
Participant's Compensation whenever such Compensation is paid, and remitted to the Trustee.
Required participant contributions shall be considered an Employer "pick-up" contribution and shall
be designated as employer contributions pursuant to Section 414(h) of the Internal Revenue Code,
contingent upon the contributions being excluded from the Participant's gross income for federal
income tax purposes. For all other purposes of this Plan, such contributions shall be considered
Participant contributions.
4.02 Participant Rollo';er Contributions. The Plan does not permit Participant rollover
contributionsDirect Transfers of Eligible Rollover Distributions.
(A) General. This section applies to distributions made on or after October 1. 2002.
Notwithstanding any provision ofthe Plan to the contrary that would otherwise limit a distributee's
election under this section, a distributee may elect, at the time and in the manner prescribed by the
board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement
plan specified by the distribute in a direct rollover.
(B) Definitions.
(1) "Eligible rollover distribution" is any distribution of all or any portion of the balance
to the credit of the distributee, except that an eligible rollover distribution does not include:
any distribution that is one of a series of substantially equal periodic payments (not less
frequently than annually) made for the life (or life expectancy) of the distribute or the joint
lives (or ioint life expectancies) of the distribute and the distributee's designated Beneficiary,
or for a specified period often vears or more: anv distribution to the extent such distribution
is required under section 401 (a)(9) of the Code: and the portion of any distribution that is not
includible in gross income. Any portion of any distribution which would be includible in
gross income will be an eligible rollover distribution if the distribution is made to an
individual retirement account described in section 408(a), to an individual retirement annuity
described in section 408(b) or to a qualified defined contribution plan described in section
401(a) or 403(a) that agrees to separately account for amounts so transferred, including
separately accounting for the portion of such distribution which is not so includible.
(2) "Eligible retirement plan" is an individual retirement account described in section
408( a) of the Code, an individual retirement annuity described in section 408(b) of the Code,
an annuity plan described in section 403(a) of the Code, an eligible deferred compensation
plan described in section 457(b) of the Code which is maintained by an eligible employer
described in section 457(e)(])(A) of the Code and which agrees to separately account for
amounts transferred into such plan from this Plan, an annuity contract described in section
4.1
403(b) of the Code, or a qualified trust described in section 401(a) of the Code. that accepts
the distributee's eligible rollover distribution. This definition shall also apply in the case of
an eligible rollover distribution to the surviving spouse.
(3) "Distributee" includes an employee or former employee. In addition. the employee's
or former employee's surviving spouse is a distributee with regard to the interest of the
spouse.
(4) "Direct rollover" is a payment by the Plan to the eligible retirement plan specified by
the distributee.
(C) Rollovers or Transfers into the Fund. On or after the effective date of Resolution , the
fund will accept member rollover cash contributions and/or direct cash rollovers of distributions for
the purchase of permissive service credit under the Plan. as follows:
(I) Direct Rollovers or Member Rollover Contributions from Other Plans. The Plan will
accept either a direct rollover of an eligible rollover distribution or a member contribution of
an eligible rollover distribution from a qualified plan described in section 403( a) of the Code,
from an annuity contract described in section 403(b) of the Code, or from an eligible plan
under section 457(b) ofthe Code, which is maintained by a state, political subdivision of a
state, or any agency or instrumentality of a state or political subdivision of a state.
(2) Member Rollover Contributions from 401(a) Plans and lRAs. The Plan will accept a
member rollover contribution of the portion of a distribution from qualified plan described in
section 401(a) of the Code. or from an individual retirement account or annuity described in
section 408(a) or 408(b) of the Code, that is eligible to be rolled over and would otherwise be
includible in the member's gross income.
4.03 Participant Account Balance Transferred from Money Purchase Pension Plan. A
Participant's account balance transferred from the Money Purchase Pension Plan and Trust for
Employees of the City of Winter Springs pursuant to Resolution No. . shall become an integral
part ofthis Trust Fund: provided that such account balance, plus interest at a rate equal to the interest
rate on 30-year Treasury securities as published in the Internal Revenue Bulletin determined as of the
calendar month preceding the first day of the Plan year, and effective October 1.2003, a rate equal to
the interest rate on 30-year Treasury securities as published in the Internal Revenue Bulletin
determined as of the calendar month preceding the first day of the Plan year, and effective October I,
2003, a rate equal to the U.S. Treasury Department long-term average rate published on the last day
of the calendar month preceding the first day of the Plan year, or such other rate that may be
approved by the U.S. Treasury Department to replace the 30-year Treasurv bond rate as a benchmark
for calculating lump sum payouts from defined benefit plans. shall be available for distribution to a
Participant upon normal retirement.
* * * * * * * * * * * * * * *
4.2
ARTICLE V - NORMAL RETIREMENT BENEFIT
5.01 Normal Retirement AgelNormal Retirement Date.
(A) Normal Retirement Age. An Employee attains Normal Retirement Age on the date he attains
age 65.
(B) Normal Retirement Date. A Participant's Normal Retirement Date is the first day of the
month following the Participant's attainment of Normal Retirement Age. Each Participant who
retires on or after attaining the Normal Retirement Date receives a normal retirement pension.
5.02 Amount of Normal Retirement Pension/Accrued Benefit. The Annual Benefit
limitations of Article III apply to the determination of a Participant's normal retirement pension and
Accrued Benefit in the manner prescribed in Section 3.05(H).
(A) Normal Retirement Pension.
(1) Benefit Formula. A Participant's normal retirement pension equals 2% of the
Participant's Average Compensation multiplied by his Years of Accrual Service for service
prior to October L 2000, and 3% of the Participant's Average Compensation multiplied by
his Years of Accrual Service for service on and after October 1,2000. The maximum number
of Years of Accrual Service taken into account in the normal retirement pension is 30~
counting forward from the date of initial participation.
(2) Average Compensation. Average Compensation is the average of the Participant's
Plan Compensation for the Averaging Period in the Participant's Compensation History
which results in the highest Average Compensation. A Participant's Compensation History is
the Participant's entire period of employment with the Employer. The Averaging Period is 3
consecutive Compensation periods (or the entire period of employment, if shorter). A
Compensation period is the 12-month period ending on the last day of the Plan Year.
(B) Accrued Benefit. Subject to the Annual Benefit limitations of Article III, a Participant's
Accrued Benefit is the normal retirement pension accrued by the Participant under the accrual
formula provided in this paragraph (B).
(I) Method of Accrual. As of any date, a Participant's Accrued Benefit is his normal
retirement pension calculated as of the determination date, based on the Years of Accrual
Service credited as of such date.
(2) Year of Accrual Service. Years of Accrual Service are Years of Service as
determined under Section 8.06, including Years of Service completed prior to his
participation in the Plan. Any Employee who completed Years of Service prior to the
adoption of Resolution No. but did not make contributions to this Trust Fund or to the
Money Purchase Pension Plan shall be credited with Years of Accrual Service upon payment
of the Required Participant Contributions due under this Plan and the required participant
5.1
contributions due under the Money Purchase Pension Plan for such service. Years of
Accrual Service also include "Years of Qualified Service". Y ears of Qualified Service
means any or all years of service performed by the Participant as an employee of the
Government of the United States, any State or political subdivision thereof or any agency or
instrumentality of any of the foregoing, other than the Employer, but only if all of the
following conditions are satisfied:
(a) the Participant makes a voluntary contribution to the Plan, in an amount
necessary to fund the benefit attributable to such Years of Qualified Service (as
determined by the actuary for the Plan, utilizing the actuarial definitions at 1.12) and
which does not exceed the amount necessary to fund the benefit attributable to such
Years of Qualified Service:
(b) the Participant makes the voluntary contribution described in paragraph (a)
above, in one lump sum payment to the Plan prior to receiving credit for such Years
of Qualified Service:
(c) the Participant's Accrued Benefit is either 100% Nonforfeitable at the time he
makes the voluntary contribution described in paragraph (a) above or will become
100% Nonforfeitable immediately after receiving credit for such Years of Qualified
Service: and
(d) the crediting of such Years of Qualified Service must not cause the
Participant to receive a retirement benefit for the same Years of Qualified Service
under more than one retirement plan.
(3). Floor offset arrangement. The Employer also maintains the Money Purchase Pension
Plan and Trust for Employees of the City of\Vinter Springs, Florida (the "Money Purohase
Plan") and the Participants in this Plan also participate in the Money Purchase Plan. The
Retirement Committee will reduce the Participant's Accrued Benefit in this Plan by the
l\ctuarial Equivalent benefit derived from the portion of the Participant's vested account
balance in the Money Purchase Plan attributable to employer contributions and required
participant contributions made pursuant to the terms of the Money Purchase Plan (including
any distributions andJor direct transfers made from the account balance of such Participant
prior to the benefit commencement date under this Plan). The interest rate used to determine
the Actuarial Equivalent benefit derived from the Money Purchase Plan is the rate specified
in Section 1.12 of this Plan. .^~ mortality assumption will not apply to determine the Actuarial
Equivalent of distributions and/or direct transfers made from the Participant's account
balance in the Money Purchase Plan nor to determine the Actuarial Equivalent benefit from
the Participant's vested account balance in the Money Purchase Plan for the period prior to
the benefit oommencement date under this Plan.
5.03 Normal Form of Benefit. The Retirement Committee will compute a Participant's
normal retirement pension in the form of a straight life annuity. The Trustee will pay the Participant's
normal retirement pension in accordance with Article X.
5.2
5.04' Late Retirement.
(A) Actuarial Adjustment for Delayed Commencement/Accrual of Benefits After Normal
Retirement Date. A benefit commencing after Normal Retirement Date is the Actuarial Equivalent of
the Participant's Accrued Benefit payable as of the later of Normal Retirement Date or the last day of
the prior Plan Year. A Participant continues to accrue benefits after his Normal Retirement Date if
the Participant's Accrued Benefit would increase because of additional Service or Compensation. A
Participant's Accrued Benefit as of the end of each Plan Year following his Normal Retirement Date
is the greater of: (1) the normal retirement pension determined under the Plan, taking into account
Service and Compensation credited after Normal Retirement Date; or (2) the Accrued Benefit,
determined as of the later of Normal Retirement Date or the end of the prior Plan Year, actuarially
adjusted for late retirement.
* * * * * * * * * * * * * * *
5.3
ARTICLE VI - EARLY RETIREMENT PENSION
6.01 Eligibility for Early Retirement Pension. A Participant who has received credit for at
least 10 Years of Accrual Service (as defined in Section 8.06)and has attained age 55 may elect an
early retirement pension. A Participant who separates from service after satisfying the service
requirement but not the age requirement may elect to receive an early retirement pension upon
satisfying the age requirement. In addition, a Participant who has completed 25 Years of Accrual
Service (as defined in Section 8.06) may elect an early retirement pension. A Participant's early
retirement pension is his Nonforfeitable Accrued Benefit payable at Normal Retirement Date without
actuarial reduction for early commencement but only ifbenefits commence on or after the Participant
attains age 55. If an eligible Participant elects to commence his early retirement pension prior to
attaining age 55, such Participant's early retirement pension is the Actuarial Equivalent of his
Nonforfeitable Accrued Benefit payable at age 55.
6.02 Payment of Early Retirement Pension.
(aA) If the present value ofthe Participant's early retirement pension does not exceed $~3.500,
the Trustee will automatically pay the early retirement pension in lump sum, as soon as
administratively practicable after the Participant's Separation from Service or, if later, after the
Participant satisfies the eligibility requirements for an early retirement pension.
(bB) If the present value of the Participant's early retirement pension exceeds $~3,500, the
Trustee will pay the early retirement pension in the form and as of the date elected by the Participant.
A participant may elect to commence his early retirement pension as of the first day of any month
during the period he is eligible for the early retirement pension and after he has separated from
Service. If the Participant fails to designate a distribution date, then the Trustee will commence
payment of the early retirement pension in accordance with Article X.
* * * * * * * * * * * * * * *
6.1
ARTICLE VII - DISABILITY PENSION
7.01 Disability Pension. The Plan does not provide a disability pension. Disability
benefits are provided under the Employer's long term disability program.
* * * * * * * * * * * * * * *
7.1
ARTICLE VIII - DEFERRED VESTED PENSION - DEATH BENEFIT
8.01 Deferred Vested Pension. A Participant who, prior to his Normal Retirement Date,
terminates employment for any reason other than death, or eligibility for an early retirement pension,
will receive a deferred vested pension (assuming the Accrued Benefit of such Participant is not
entirely forfeitable).
8.02 Amount of Deferred Vested Pension. The Participant's deferred vested pension is the
Actuarial Equivalent of his Nonforfeitable Accrued Benefit payable at Normal Retirement Date.
8.03 Payment of Deferred Vested Pension.
(aA) If the present value of the Participant's deferred vested pension does not exceed $~3.500,
the Trustee will automatically pay the deferred vested pension in lump sum, as soon as
administratively practicable following the Participant's Separation from Service. In no event may the
distribution occur later than the 60th day following the close of the Plan Year in which the
Participant attains Normal Retirement Age.
(bB) If the present value of the Participant's deferred vested pension exceeds $~3.500, the
Trustee will pay the deferred vested pension in the form elected by the Participant. A Participant
may elect to commence his deferred vested pension after the Participant's Normal Retirement Date.
If the Participant fails to elect a distribution date, then the Trustee will commence payment of the
deferred vested pension in accordance with Article X.
8.04 Pre-Retirement Death Benefit. If a Participant dies prior to commencement of
a normal retirement pension, deferred vested pension or early retirement pension, his Beneficiary
will receive a death benefit equal to the present value of the Participant's Nonforfeitable Accrued
Benefit. The Trustee will make payment, or commence payment, of the deceased Participant's death
benefit in accordance with Articles IX and X.
8.05 Vesting Schedule.
(A) 100% Vesting Upon Certain Events. A Participant's Accrued Benefit is 100% Nonforfeitable
upon and after his attaining Normal Retirement Age (if employed on or after that date). A
Participant's Accrued Benefit is 100% Nonforfeitable if the Participant's separation from Service is a
result of death, disability or eligibility for an early retirement pension.
(B) I 00% Vesting of Required Participant Contributions. Each Participant is immediately 100%
vested with respect to his Required Participant Contributions. A Participant is entitled to receive a
return of his Required Participant Contributions upon termination of employment. together with
simple interest at a rate equal to the interest rate on 30-year Treasury securities as published in the
Internal Revenue Bulletin determined as of the calendar month preceding the first day of the Plan
year, and effective October 1.2003, a rate equal to the U.S. Treasury Department long-term average
rate published on the last day of the calendar month preceding the first day ofthe Plan year, or such
8.1
other rate that may be approved by the U.S. Treasury Department to replace the 30-year Treasury
bond rate as a benchmark for calculating lump sum payouts from defined benefit plans. in lieu of any
other benefit under the Plan. In the event a Participant dies while employed by the City, his
Beneficiary shall be entitled to receive his Required Participant Contributions, together with simple
interest at a rate equal to the interest rate on 30-year Treasury securities as published in the Internal
Revenue Bulletin determined as of the calendar month preceding the first day of the Plan year, and
effective October 1. 2003, a rate equal to the U.S. Treasury Department long-term average rate
published on the last day of the calendar month preceding the first dav of the Plan year, or such other
rate that may be approved by the u.s. Treasury Department to replace the 30-year Treasury bond
rate as a benchmark for calculating lump sum payouts from defined benefit plans. in lieu of any other
benefit under the Plan.
fBtfQ Vesting Schedule. Subject to Section 8.05(A) and Section 8.05(8), a Participant's
Nonforfeitable percentage in his Accrued Benefit equals the percentage in the following schedule:
Years of Service
Nonforfeitable
Percentage
Less than 3 ..........."............. None
3 ............................. 20%
4 ............................. 40%
5 ............................. 60%
6 ............................. 80%
7 or more . . . . . . . . . . . . . . . . . . . . .. 100%
fGtiill Amendment to Vesting Schedule. Though the Employer reserves the right to amend the
vesting schedule at any time, the Retirement Committee will not apply the amended vesting schedule
to reduce the Nonforfeitable percentage of any Participant's Accrued Benefit derived from Employer
contributions (determined as of the later of the date the Employer adopts the amendment, or the date
the amendment becomes effective) to a percentage less than the Nonforfeitable percentage computed
under the Plan without regard to the amendment. An amended vesting schedule will apply to a
Participant only if the Participant receives credit for at least one Hour of Service after the new
schedule becomes effective.
If the Employer makes a permissible amendment to the vesting schedule, each Participant
having at least 3 Years of Service with the Employer may elect to have the percentage of his
Nonforfeitable Accrued Benefit computed under the Plan without regard to the amendment. The
Participant must file his election with the Retirement Committee within 60 days of the latest of(l)
the Employer's adoption of the amendment; (2) the effective date of the amendment; or (3) his
receipt of a copy of the amendment. The Retirement Committee, as soon as practicable, must
forward a true copy of any amendment to the vesting schedule to each affected Participant, together
with an explanation of the effect ofthe amendment, the appropriate form upon which the Participant
may make an election to remain under the vesting schedule provided under the Plan prior to the
amendment and notice of the time within which the Participant must make an election to remain
under the prior vesting schedule. The vesting schedule election does not apply to a Participant if the
8.2
amended vesting schedule provides for vesting at least as rapid at all times as the vesting schedule in .
effect prior to the amendment.
tf)jili} Forfeiture for Cause. The Plan does not permit a forfeiture for cause.
8.06 Year of Service - Vesting. For purposes of vesting under Section 8.05, Year of
Service means any Plan Year during which an Employee completes not less than 1,000 Hours of
Service. A Year of Service includes any Year of Service earned prior to the Effective Date of the
Plan, except as provided in Section 8.08.
8.07 Break in Service - Vesting. For purposes of this Article VIII, a Participant incurs a
"Break in Service" if during any Plan Year he does not complete more than 500 Hours of Service
with the Employer.
8.08 Included Years of Service - Vesting. For purposes of determining "Years of Service"
under Section 8.06, the Plan takes into account all Years of Oualified Service credited to a
Participant pursuant to Section 5.02(B) and all Years of Service an Employee completes with the
Employer except:
(aA) Any Year of Service completed before a Break in Service, unless the Employee completes a
Year of Service after the Break in Service. This Break in Service rule will not operate to recredit any
Year of Service disregarded under clause (eB).
(&B) Any Year of Service completed before a Break in Service if the number of the Participant's
consecutive Breaks in Service equals of exceeds the greater of 5 or the aggregate number of the
Years of Service prior to the Break. This Break in Service rule applies only if the Participant is 0%
vested in his Accrued Benefit derived from Employer contributions at the time he has a Break in
Service. Furthermore, the aggregate number of Years of Service before a Break in Service does not
include any Years of Service not required to be taken into account under this exception by reason of
any prior Break in Service. If the Retirement Committee Retirement Committee disregards the
Participant's Years of Service under this exception, the Plan forfeits his pre-Break in Service
Accrued Benefit.
(eC) Any Year of Service before the Plan Year in which the Participant attained the age of 18.
8.09 Disregard of Accrued Benefit.
(A) Cash-Out Distribution. If a partially-vested Participant receives a cash-out payment of his
entire Nonforfeitable Accrued Benefit, the Retirement Committee will disregard the Participant's
Accrued Benefit determined as of the date of the cash-out distribution. A partially-vested Participant
who is re-employed by the Employer after receiving a cash-out distribution has the right to repay the
Trustee the Employer derived portion of the cash-out distribution he received, provided his
repayment right has not expired. The Participant's repayment must include interest at the rate
determined under Code ~411 (c )(2)(C) (or under a successor to that Code section), calculated from
the date of the cash-out distribution. A Participant's right to make repayment expires on the earlier
8.3
of: (1) the date 5 years after the Participant's first re-employment date with the Employer following
the cash-out distribution; or (2) the last day ofthe first Break in Service Period ending after the cash-
out distribution. A Break in Service Period is a period of 5 consecutive Plan Years in which the
Participant incurs a Break in Service.
(B) Restoration of Accrued Benefit. If, prior to the expiration of the repayment period, a
re-employed Participant makes repayment in accordance with the terms of this Section 8.09, the
Retirement Committee will restore the Participant's Accrued Benefit disregarded under this Section
8.09.
(C) 0% Vested Participant. A 0% vested Participant is a Participant whose Accrued Benefit is
entirely forfeitable at the time of his Separation from Service. Under the deemed cash-out rule, the
Retirement Committee will treat the 0% vested Participant as having received a cash-out distribution
on the date of the Participant's Separation from Service. For purposes of applying the restoration
provisions of this Section 8.09, the Retirement Committee will treat the 0% vested Participant as
repaying his cash-out "distribution" (plus the required interest) on the first date of his re-employment
with the Employer.
* * * * * * * * * * * * * * *
8.4
ARTICLE IX - PRERETIREMENT SURVIVOR ANNUITY
9.0 I Preretirement Survivor Annuity - Eligibility. If a married Participant dies prior to his
annuity starting date, the Retirement Committee will direct the Trustee to distribute to the
Participant's surviving spouse a preretirement survivor annuity, unless the Participant has a valid
waiver election (as described in Section 9.02) in effect, or unless the Participant and his spouse were
not married throughout the one year period ending on the date of his death.
(A) Preretirement Survivor Annuity - Defined. A preretirement survivor annuity is a straight life
annuity, payable no less frequently than annually, for the life of the surviving spouse.
(B) Present Value Not Greater Than $~3.500. If the present value of the preretirement
survivor annuity is not greater than $~3,500, the Trustee will automatically make the distribution
in a lump sum, in lieu of the preretirement survivor annuity. The distribution must occur on or before
the annuity starting date.
(C) Surviving Spouse Elections. If the present value of the preretirement survivor annuity
exceeds $~3.500, the Participant's surviving spouse may elect to have the Trustee commence
payment of the preretirement survivor annuity as of the first day of any month following the
Participant's death, but not later than the applicable mandatory distribution period described in
Article X. A surviving spouse also may elect any form of payment described in Article X, in lieu of
the preretirement survivor annuity (other than a joint and survivor annuity). In the absence of an
election by the surviving spouse, the Retirement Committee will direct the Trustee to distribute the
preretirement survivor annuity as soon as administratively practicable following the close ofthe Plan
Year in which the latest of the following events occurs: (1) the Participant's death; (2) the date the
Retirement Committee receives notification of or otherwise confirms the Participant's death; or (3)
the date the Participant would have attained Normal Retirement Age.
(D) Special Rules. If the Participant's surviving spouse dies prior to the commencement of the
preretirement survivor annuity, the Plan will not pay the preretirement survivor annuity and the
Retirement Committee will determine the Participant's death benefit pursuant to Section 8.04.
9.02 Waiver Election - Preretirement Survivor Annuity.
(A) Explanation of Waiver. The Retirement Committee must provide a written explanation of
the preretirement survivor annuity to each married Participant, within the following period which
ends last: (1) the period beginning on the first day of the Plan Year in which the Participant attains
age 32 and ending on the last day of the Plan Year in which the Participant attains age 34; or (2) a
reasonable period after an Employee becomes a Participant. A reasonable period described in clause
(2) is the period beginning one year before and ending one year after the Employee becomes a
Participant. If the Participant separates from Service before attaining age 35, clauses (1) and (2) do
not apply and the Retirement Committee must provide the written explanation within the period
beginning one year before and ending one year after the separation from Service. The written
explanation must describe, in a manner consistent with Treasury regulations, the terms and
conditions of the preretirement survivor annuity comparable to the explanation of the qualified joint
9.1
and survivor annuity required under Article X. The Plan does not limit the number of times the
Participant may revoke a waiver of the preretirement survivor annuity or make a new waiver during
the election period.
(B) Waiver Requirements. A Participant's waiver election of the preretirement survivor annuity
is not valid unless (I) the Participant makes the waiver election no earlier than the first day of the
Plan Year in which he attains age 35 and (2) the Participant's spouse (to whom the preretirement
survivor annuity is payable) satisfies the consent requirements described in Article X, except the
spouse need not consent to the form of benefit payable to the designated Beneficiary. The spouse's
consent to the waiver of the preretirement survivor annuity is irrevocable, unless the Participant
revokes the waiver election. Irrespective of the time of election requirement described in clause (1),
if the Participant separates from Service prior to the first day of the Plan Year in which he attains age
35, the Retirement Committee will accept a waiver election as respects the Participant's Accrued
Benefit attributable to his Service prior to his separation from Service. Furthermore, if a Participant
who has not separated from Service makes a valid waiver election, except for the timing requirement
of clause (1), the Retirement Committee will accept that election as valid, but only until the first day
of the Plan Year in which the Participant attains age 35. A waiver election described in this
paragraph is not valid unless made after the Participant has received the written explanation
described in this Section 9.02.
9.03 Reduction of Pension Benefits. The Trustee will not reduce a Participant's pension
benefits as a result of the preretirement survivor annuity coverage required under Section 9.01. The
Employer alone bears the cost of providing the preretirement survivor annuity.
* * * * * * * * * * * * * * *
9.2
ARTICLE X - PAYMENT OF ACCRUED BENEFIT -
OPTIONAL FORMS OF PAYMENT
10.01 Form of Benefit. Subject to the requirements of Section 10.02, the Retirement
Committee will direct the Trustee to pay a Participant his Nonforfeitable Accrued Benefit in a form
permitted under Section 10.05. Annuity payments will continue until the last scheduled payment
coincident with or immediately preceding the date ofthe Participant's death or, if applicable, the date
of his survivor's death.
(A) Consent. A Participant must consent, in writing, to any distribution described in this Article
X ifthe present value ofthe Participant's Nonforfeitable Accrued Benefit exceeds $~3.500, and
the distribution commences prior to the Participant's attaining Normal Retirement Age. Furthermore,
the Participant's spouse also must consent, in writing, to any distribution for which Section 10.02
requires the spouse's consent. For purposes ofthe consent requirements under this Article X, if the
present value of the Participant's Nonforfeitable Accrued Benefit, at the time of any distribution,
exceeds $~3.500, the Retirement Committee will treat that present value as exceeding
$~3.500 for purposes of all subsequent Plan distributions to the Participant.
(B) Annuity starting date/distribution date. The term "annuity starting date" means: (1) the first
day of the first period for which the Plan pays an amount as an annuity; or (2) for a distribution in
any other form, the date of the distribution. A distribution date is the date as of which the Plan
requires distribution or as of the date which the Participant (or Beneficiary) may elect to commence
distribution.
(C) Direct Rollover of Eligible Rollover Distribution. For distributions made after December 31,
1992, a Participant may elect, at the time and in the manner prescribed by the Retirement Committee,
to have any portion of his eligible rollover distribution paid directly to an eligible retirement plan
specified by the Participant in a direct rollover designation. For purposes of this Section 10.01 (C), a
Participant includes a Participant's surviving spouse and the Participant's spouse or former spouse
who is an alternate payee under a qualified domestic relations order.
The following definitions apply to this Section 10.01 (C):
(I) Eligible rollover distribution. An eligible rollover distribution is any distribution of all
or any portion of the balance to the credit ofthe Participant, except an eligible rollover distribution
does not include: any distribution which is one of a series of substantially equal periodic payments
(not less frequently than annually) made for the life (or life expectancy) of the Participant or the joint
li ves (or joint life expectancies) of the Participant and the Participant's designated beneficiary, or for
a specified period of ten years or more; any distribution to the extent required under Code
~401(a)(9); and the portion of any distribution which is not includible in gross income (determined
without regard to the exclusion of net unrealized appreciation with respect to employer securities).
(2) Eligible retirement plan. An eligible retirement plan is an individual retirement
account described in Code ~408( a), an individual retirement annuity described in Code ~40 I (b), an
10.1
annuity plan described in Code s403(a), or a qualified trust described in Code ~401(a), which
accepts the Participant's eligible rollover distribution. However, in the case of an eligible rollover
distribution to the surviving spouse, an eligible retirement plan is an individual retirement account or
individual retirement annuity.
(3) Direct rollover. A direct rollover is a payment by the Plan to the eligible retirement
plan specified by the distributee.
10.02 Qualified Joint and Survivor Annuity.
(A) Payment of Annuity Form. The Retirement Committee must direct the Trustee to distribute a
married or unmarried Participant's Nonforfeitable Accrued Benefit in the form of a qualified joint
and survivor annuity, unless the Participant makes a valid waiver election (described in Section
10.04) prior to the annuity starting date. If, as of the annuity starting date, the Participant is married,
a qualified joint and survivor annuity is an immediate annuity payable for the life ofthe Participant
and a survivor annuity payable for the remaining life of the Participant's surviving spouse which is
50% of the amount of the annuity payable during the life of the Participant. If, as of the annuity
starting date, the Participant is not married, a qualified joint and survivor annuity is an immediate life
annuity for the Participant. The qualified joint and survivor annuity will be the Actuarial Equivalent
of the Participant's Nonforfeitable Accrued Benefit and will provide monthly payments. The
Participant may elect to have annuity payments less frequently than monthly, but not less frequently
than annually.
(B) Present Value Not Greater Than $~3.500. If the present value of the Participant's
Accrued Benefit is not greater than $~3.500, the Trustee will automatically pay the Participant's
pension in a lump sum, in lieu of a qualified joint and survivor annuity. The distribution must occur
on or before the annuity starting date. The consent requirements of this Article X do not apply to a
Participant subject to this paragraph.
10.03 Commencement of Benefits. The Retirement Committee must direct the Trustee to
commence distribution of benefits in accordance with this Section 10.03, subject to the mandatory
distribution requirements of Section 10.06.
(A) Distribution to Participant Who Separates from Service Before Normal Retirement Date. The
Retirement Committee will direct the Trustee to commence distribution of the Participant's
Nonforfeitable Accrued Benefit in accordance with Article VI, VII or VIII, whichever applies.
(B) Distribution to Participant Who Separates from Service After Normal Retirement Date. The
Retirement Committee will direct the Trustee to commence distribution to the Participant:
(1) Present Value of Normal Retirement Pension Not Exceeding $~3,500. In lump
sum, as soon as administratively practicable following the Participant's separation from
Service, but not later than the 60th day following the close of the Plan Year in which that
separation from Service occurs.
10.2
(2) Present Value of Normal Retirement Pension Exceeds $~3,500. In the form and
at the time elected by the Participant, as permitted under this Article X. The Participant may
elect to commence distribution as soon as administratively practicable following separation
from Service or as of the first day of any subsequent month.
(C) Failure of Participant To Make an Election. Where the Participant has the right to elect the
form and timing of his pension, but has failed to make an election, the Retirement Committee will
direct the Trustee to commence distribution of the Participant's pension, in the form prescribed by
Section 10.02, as soon as administratively practicable following the later of: (1) the Participant's
attainment of Normal Retirement Age; or (2) the Participant's separation from Service. If, pursuant to
the Plan, the latest distribution date available to the Participant occurs earlier than the mandatory
distribution date described in this Section 10.03(C), the Retirement Committee will satisfy this
distribution requirement by purchasing, as soon as administratively practicable after the latest
applicable distribution date, a deferred Nontransferable Annuity which will commence the
Participant's pension at the mandatory distribution date.
(D) Notice to Participant. At least 30 days before the Participant's annuity starting date, the
Retirement Committee must provide a benefit notice to a Participant who is eligible to make a
distribution election under the Plan. The benefit notice must explain the optional forms of benefit in
the Plan, including the material features and relative values of those options, and the Participant's
right to defer distribution until he attains Normal Retirement Age.
(E) Death of the Participant. Ifthe Participant had commenced distribution prior to his death, the
Retirement Committee will direct the Trustee to make distribution to the Participant's Beneficiary in
accordance with the distribution method in effect at the time of death. If the deceased Participant had
not commenced distribution, the Retirement Committee will direct the Trustee to distribute the
Participant's death benefit in accordance with paragraph (1) or paragraph (2), whichever applies,
subject to the requirements of Article IX.
(1) Present Value of Death Benefit Does Not Exceed $~3500. In lump sum, as soon
as administratively practicable following the date on which the Retirement Committee
receives notification of or otherwise confirms the Participant's death.
(2) Present Value of Death Benefit Exceeds $~3,500. In the form and at the time
elected by the Participant or, if applicable by the Beneficiary, as permitted under this Article
X. Unless otherwise elected by the Participant and to the extent pennitted under Section
10.06, a Beneficiary may elect to commence distribution ofthe Participant's death benefit as
of the first day of any month following the date the Retirement Committee receives
notification of or otherwise confirms the Participant's death. In addition to the other forms of
distribution available under this Article X, and to the extent permitted under Section 10.06, a
Beneficiary may elect to receive the Participant's death benefit in monthly, quarterly or
annual installments over a 5 year period, unless the Participant elected otherwise. In the
absence of an election, the Retirement Committee will direct the Trustee to distribute the
Participant's death benefit in five annual installment payments commencing as soon as
10.3
administratively practicable following the end of the Plan Year that the Retirement
Committee receives notification of or otherwise confirms the Participant's death.
10.04 Waiver Election - Qualified Joint and Survivor Annuity.
(A) Explanation of Waiver. At least 30 days before the Participant's annuity starting date, the
Retirement Committee must provide the Participant a written explanation ofthe terms and conditions
of the qualified joint and survivor annuity, the Participant's right to make, and the effect of, an
election to waive the joint and survivor form of benefit, the rights of the Participant's spouse
regarding the waiver election and the Participant's right to make, and the effect of, a revocation of a
waiver election. The Plan does not limit the number oftimes the Participant may revoke a waiver of
the qualified joint and survivor annuity or make a new waiver during the election period.
(B) Waiver Requirements. A married Participant's waiver election is not valid unless (1) the
Participant's spouse (to whom the survivor annuity is payable under the qualified joint and survivor
annuity), after the Participant has received the written explanation described in this Section, has
consented in writing to the waiver election, the spouse's consent acknowledges the effect of the
election, and a notary public or the Plan Administrator (or his representative) witnesses the spouse's
consent, (2) the spouse consents to the alternate form of payment designated by the Participant or to
any change in that designated form of payment, and (3) unless the spouse is the Participant's sole
primary Beneficiary, the spouse consents to the Participant's Beneficiary designation or to any
change in the Participant's Beneficiary designation. The spouse's consent to a waiver of the qualified
joint and survivor annuity is irrevocable unless the Participant revokes the waiver election. The
spouse may execute a blanket consent to any form of payment designation or to any Beneficiary
designation made by the Participant, if the spouse acknowledges the right to limit that consent to a
specific designation but, in writing, waives that right.
The Retirement Committee may accept as valid a waiver election which does not satisfy the
spousal consent requirements if the Retirement Committee establishes the Participant does not have
a spouse, the Retirement Committee is not able to locate the Participant's spouse, the Participant is
legally separated or has been abandoned (within the meaning of State law) and the Participant has a
court order to that effect, or other circumstances exist under which the Secretary of the Treasury will
excuse the consent requirement. If the Participant's spouse is legally incompetent to give consent, the
spouse's legal guardian (even if the guardian is the Participant) may give consent.
10.05 Optional Forms of Distribution. The Retirement Committee will direct the Trustee to
pay the Participant's Nonforfeitable Accrued Benefit, as elected by the Participant or, if applicable,
by the Beneficiary, under one of the optional forms of distribution permitted under this Section
10.05, subject to the annuity distribution requirements of Section 10.02. The Beneficiary's election,
except as required by Article IX, is subject to any restrictions designated in writing by the Participant
and not revoked as of his date of death.
10.4
(A) Actuarial Equivalent Optional Forms. Any form of payment under this Section 1 0.05(A) must
satisfy the mandatory distribution requirements of Section 10.06 and must be the Actuarial
Equivalent of the Participant's Nonforfeitable Accrued Benefit.
The optional forms of distribution are:
(1) Installments. Payment in monthly, quarterly or annual installments over the life
expectancy of the Participant, or the joint life and last survivor expectancy of the Participant
and his designated Beneficiary.
(2) Life Annuity. A straight life annuity, payable no less frequently than annually, with
payment of the Participant's Accrued Benefit ending on the Participant's death.
(3) Life Annuity with Term Certain. A life annuity, payable no less frequently than
annually, with a term certain guaranteed. The term certain cannot exceed the Participant's life
expectancy, or the joint life and last survivor expectancy of the Participant and his designated
Beneficiary. If a Participant dies before the Trustee has made the guaranteed number of
payments, the Trustee will continue the balance of the payments to the Participant's
designated Beneficiary.
(4) Joint and Survivor Annuity. Ajoint life annuity payable for the life of the Participant,
with a survivor annuity payable for the remaining life of a designated Beneficiary which is a
specified percentage (either 75% or 100%) of the annuity payable during the Participant's
life.
10.06 Mandatory Distributions.
(A) Required Beginning Date. If any distribution commencement date described under the Plan,
either by Plan provision or by Participant election (or nonelection), is later than the Participant's
Required Beginning Date, the Retirement Committee instead must direct the Trustee to make
distribution to the Participant on the Participant's Required Beginning Date. A Participant's Required
Beginning Date is the April 1 following the close of the calendar year in which the Participant attains
age 70lh or, if later, April 1 following the close of the calendar year in which the Participant
separates from Service. A mandatory distribution at the Participant's Required Beginning Date will
be in the form of distribution required under Section 10.02 unless the Participant, pursuant to the
provisions of this Article X, makes a valid election to receive an alternative form of payment.
(B) Minimum Distribution Requirements for Participants. The Retirement Committee may not
direct the Trustee to distribute the Participant's Nonforfeitable Accrued Benefit, nor may the
Participant elect to have the Trustee distribute his Nonforfeitable Accrued Benefit, under a method of
payment which, as of the Required Beginning Date, does not satisfy the minimum distribution
requirements under Code ~401 (a)(9) and the applicable Treasury regulations.
10.5
(1) Minimum distribution for annuity distribution. An annuity distribution made to the
Participant to satisfy the minimum distribution requirements must meet all of the following
requirements:
(a) The periodic payment intervals under the annuity may not be longer than one
year.
(b) The distribution period must not exceed the life (or joint lives) of the
Participant and his designated Beneficiary (as determined under Article XIV, subject
to the requirements of the Code 9401 (a)(9) regulations), or a period certain not longer
than the life expectancy (or joint life expectancy) or the Participant and his
designated Beneficiary.
(c) The annuity does not recalculate life expectancy.
(d) The Participant or Beneficiary may not lengthen the period certain, if
applicable, even ifthe period certain is shorter than the maximum period permitted
under Code ~401 (a)(9).
(e) The payments are nonincreasing or increase only under the following
circumstances: (i) with any percentage increase in a specified and generally
recognized cost-of-living index; (ii) to take into account the reduction to the amount
of the participant's payments to provide a survivor benefit, but only upon the death of
the Beneficiary on whose life the annuity determines the survivor distribution period
and if the payments continue over the life of the Participant; (iii) to provide cash
refunds of Employee contributions upon the Participant's death; or (iv) because of an
increase in benefits under the Plan.
(f) If the annuity is a life annuity (or a life annuity with a period certain not
exceeding 20 years) the minimum distribution required by the Participant's Required
Beginning Date is one payment interval. Subsequent minimum distributions are the
payment intervals determined under the annuity, even if the second payment interval
occurs in the calendar year following the year in which the Required Beginning Date
occurs.
(g) If the annuity provides a period certain without a life contingency, or if a life
annuity with a period certain exceeding 20 years, the minimum distribution for each
calendar year subject to this Section 10.06, is the annual amount, determined by
totaling the periodic payments for a calendar year. The minimum distribution due by
the Participant's Required Beginning Date is the annual amount for the calendar year
preceding that Required Beginning Date. The minimum distribution for the calendar
year which includes the Required Beginning Date and for all subsequent calendar
years is the annual amount for that calendar year and the annuity must pay that
minimum distribution no later than December 31 of that calendar year.
10.6
(2) Minimum Distribution Incidental Death Benefit ("MDIB"). If the Participant's spouse
is not his designated Beneficiary, an annuity must satisfy the MDIB requirements of this
paragraph. If the annuity provides a period certain without a life contingency, the period
certain in effect as of the first distribution calendar year may not exceed the applicable period
determined under the maximum period certain table set forth in Treas. Reg. ~ 1.40 I (a)(9)-2. If
the annuity with a life contingency includes a period certain, the period certain at any time on
or after the Participant's Required Beginning Date also may not exceed the maximum period
certain determined under the table described in the immediately preceding sentence. If the
annuity is a joint and survivor annuity payable for the joint lives of the Participant and a
nonspouse Beneficiary, the survivor percentage in effect at any time on or after the
Participant's Required Beginning Date may not exceed the percentage determined under the
applicable percentage table set forth in Treas. Reg. ~ 1.401 (a)(9)-2. A joint and survivor
annuity under which the survivor percentage does not exceed 52% always satisfies this
paragraph. A life annuity payable to the Participant, without any period certain, is not subject
to the MDIB requirements of this paragraph.
(3) Additional Accruals. Benefits accruing to the Participant after his Required
Beginning Date constitute a separate component of an annuity distribution, beginning with
the first payment interval ending in the calendar year immediately following the calendar
year in which such amount accrues. The annuity starting date and form of distribution
commenced by the Required Beginning Date applies to the distribution ofthese additional
accruals, unless the Participant elects otherwise pursuant to his benefit options under the
Plan, and that election otherwise complies with these minimum distribution requirements. An
additional accrual includes any portion of the Participant's Accrued Benefit which becomes
Nonforfeitable during the applicable calendar year. '
(4) N onannuity Distributions. If the Participant elects an installment distribution directly
from the Trust, under which the method of payment is in the form of an individual account
distribution, the distribution method must satisfy the minimum distribution requirements
which apply to individual accounts, including the MDIB requirements which apply to
individual accounts, as determined under Code ~40 I (a)(9) and the applicable regulations. A
lump sum distribution made on or before a Participant's Required Beginning Date of his
entire Nonforfeitable Accrued Benefit under the Plan satisfies the minimum distribution
requirements. Furthermore, a lump sum payment of additional accruals, as described in the
immediately preceding paragraph, no later than the end of the first payment interval ending in
the calendar year immediately following the calendar year in which such amount accrues,
satisfies the minimum distribution requirements.
(C) Minimum Distribution Requirement for Beneficiaries. The method of distribution to the
Participant's Beneficiary must satisfy Code ~401(a)(9) and the applicable Treasury regulations.
(1) Death After the Required Beginning Date. If the Participant's death occurs after his
Required Beginning Date or, if earlier, the date the Participant commences an irrevocable
annuity, the method of payment to the Beneficiary must provide for completion of payment
10.7
over a period which does not exceed the payment period which had commenced for the
Participant.
(2) Death Before the Required Beginning Date. If the Participant's death occurs prior to
his Required Beginning Date, and the Participant has not commenced an irrevocable annuity,
the method of payment to the Beneficiary must provide for completion of payment over a
period not exceeding:
(a) 5 years after the date of the Participant's death (with payments completed by
. December 31 of the calendar year in which occurs the 5th anniversary of the
Participant's date of death); or
(b) if the Beneficiary is a designated Beneficiary, over the designated
Beneficiary's life or life expectancy.
The Retirement Committee will not direct payment over a period described in clause (b)
unless the Trustee will commence payment to the designated Beneficiary no later than the
December 31 following the close of the calendar year in which the Participant's death occurred or, if
later, and the designated Beneficiary is the Participant's surviving spouse, the December 31 of the
calendar year in which the Participant would have attained age 70Y2. The Retirement Committee
must use the unisex life expectancy multiples under Treas. Reg. ~ 1.72-9 for purposes of applying this
paragraph. An annuity distribution to the designated Beneficiary, whether directly from the Trust or
in the form of a Nontransferable Annuity Contract, satisfies clause (b) if the annuity satisfies the
minimum distribution requirements of Section 10.06(B), but applying paragraphs (f) and (g) of
Section 1O.06(B)(1) as follows: (i) the distribution calendar years applicable to the designated
Beneficiary are the calendar year in which benefits must commence under clause (b) of this Section
1 0.06(C)(2) and all subsequent calendar years; and (ii) the first payment interval under paragraph (f)
is due by the December 31 described in this Section 10.06(C)(2). A lump sum distribution to the
Beneficiary made no later than the date described in clause (a) of this Section I 0.06(C)(2) satisfies
these minimum distribution requirements.
In the case of a non annuity distribution to a designated Beneficiary, the Plan satisfies the
requirement of this Section 1 0.06(C) if the distribution method satisfies the minimum distribution
requirements applicable to individual accounts, as determined under Code S401 (a)(9) and the
applicable regulations, and the first minimum distribution occurs no later than the December 31
described in clause (2)(b) ofthis Section 10.06(C). The Retirement Committee will apply the post-
death minimum distribution rules by treating any amount paid to the Participant's child, which
becomes payable to the Participant's surviving spouse upon the child's attaining the age of majority,
as paid to the Participant's surviving spouse.
(D) Special Rules. The Retirement Committee, only upon the Participant's written request or, in
the case of a distribution described in Section 10.06(C), only upon the written request of the
Participant's spouse, will recalculate the applicable life expectancy period for purposes of calculating
the minimum distribution applicable to a distribution calendar year following the first distribution
10.8
calendar year. The Participant must make a recalculation election not later than his Required
Beginning Date. A surviving spouse must make a recalculation election no later than the December
31 date described in Section 10.06(C)(2). A recalculation election applicable to a joint life
expectancy payment, where the survivor is a nonspouse Beneficiary, may not take into account any
adjustment to any life expectancy other than the Participant's life expectancy, as prescribed by the
applicable regulations under Code 940 I (a)(9). In the absence of a recalculation election, the Plan
does not permit recalculation of the applicable life expectancy factor.
10.07 Distributions Under Domestic Relations Orders. Nothing contained in this Plan will
prevent the Trustee, in accordance with the direction of the Retirement Committee, from complying
with the provisions of a qualified domestic relations order (as defined in Code ~414(p )). The
Retirement Committee may adopt any written procedures relating to a qualified domestic relations
order which the Retirement Committee deems necessary for proper administration ofthe Plan. Thts~
Plan specificallydoes not permits distribution to an alternate payee under a qualified domestic
relations order at any timc, irrcspective of whetheruntil the Participant has-attainee~ his earliest
retirement age (as defined under Code ~414(p)) under the Plan. A distribution to an alternate payee
prior to the Participant's attainment of earliest retirement age is available only if: (1) the order
specifics distribution at that time or permits an agreement between the Plan and the alternate payee to
authorize an earlier distribution; and (2) if the present value of the alternate payee's benefits under
the Plan exceeds $5,000, and the order requires, the alternate payee consents to any distribution
occurring prior to the Participant's attainment of earliest retirement age. Nothing in this Section
10.07 permits a Participant a right to receive distribution at a time otherwise not permitted under the
Plan nor does it permit the alternate payee to receive a form of payment not permitted under the Plan.
For purposes of applying Articles IX and X, the Retirement Committee will treat a former
spouse as the Participant's spouse or surviving spouse to the extent provided under a qualified
domestic relations order. The survivor annuity requirements of Article IX and the joint and survivor
annuity requirements of Article X apply separately to the portion of the Participant's Nonforfeitable
Accrued Benefit subject to the qualified domestic relations order and to the portion of the
Participant's Nonforfeitable Accrued Benefit not subject to that order.
The Retirement Committee must establish reasonable procedures to determine the qualified
status of a domestic relations order. Upon receiving a domestic relations order, the Retirement
Committee promptly will notify the Participant and any alternate payee named in the order, in
writing, of the receipt of the order and the Plan's procedures for determining the qualified status of
the order. Within a reasonable period of time after receiving the domestic relations order, the
Retirement Committee must determine the qualified status of the order and must notify the
Participant and each alternate payee, in writing, of its determination. The Retirement Committee
must provide notice under this paragraph by mailing to the individual's address specified in the
domestic relations order, or in a manner consistent with applicable law.
If any portion of the Participant's Nonforfeitable Accrued Benefit is payable during the period
the Retirement Committee is making its determination of the qualified status of the domestic
relations order, the Retirement Committee must make a separate accounting of the amounts payable.
10.9
If the Retirement Committee determines the order is a qualified domestic relations order within 18
months of the date amounts first are payable following receipt of the order, the Retirement
Committee will direct the Trustee to distribute the payable amounts in accordance with the order. If
the Retirement Committee does not make its determination of the qualified status of the order within
the 18-month determination period, the Retirement Committee will direct the Trustee to distribute
the payable amounts in the manner the Plan would distribute if the order did not exist and will apply
the order prospectively if the Retirement Committee later determines the order is a qualified
domestic relations order.
The Trustee will make any payments or distributions required under this Section 10.07 by
separate benefit checks or other separate distribution to the alternate payee.
* * * * * * * * * * * * * * *
10.10
ARTICLE XI - MISCELLANEOUS PROVISIONS AFFECTING
THE PAYMENT OF BENEFITS
11.01 General. In general, the Trustee will make payment of any pension directly to the
Participant entitled to the payment. However, the Retirement Committee may instruct the Trustee to
purchase a Nontransferable Annuity contract from an insurance company. The Nontransferable
Annuity contract must provide pension and other benefits in an amount not less than the pension and
other benefits a Participant would receive under this Plan and otherwise must comply with the
requirements of this Plan. In the event the Trustee purchases a Nontransferable Annuity contract for
the benefit of a Participant, the Trustee either may assign the contract to the Participant or hold the
contract for the benefit of the Participant pursuant to the instructions of the Retirement Committee.
The Trustee also may purchase a Nontransferable Annuity contract for the benefit of a designated
Beneficiary, surviving spouse or alternate payee under a qualified domestic relations order (as
defined in Code ~414(p)) entitled to distribution of all or a portion of the Participant's Nonforfeitable
Accrued Benefit.
11.02 Nonduplication of Benefits. In the event the Trustee distributes any part or all of a
Participant's Accrued Benefit to him and the Participant later resumes active employment with the
Employer, the Trustee will compute the Participant's Accrued Benefit by taking into account all of
the Participant's Years of Accrual Service. However, the Trustee will offset the Participant's Accrued
Benefit so computed by the Participant's Accrued Benefit attributable to any distribution the Trustee
has made to the Participant (other than a cash-out distribution described in Article VIII). If the
distribution was a cash-out distribution, as described in Article VIII, the Trustee will offset the
Participant's Accrued Benefit by the Accrued Benefit disregarded under Section 8.09.
11.03 [Reserved].
11.04 No Disregard of Service. For purposes of computing Years of Service under Article
VIII, the Plan does not disregard Years of Service with respect to which a Participant has received a
distribution of his Accrued Benefit.
11.05 Merger/Direct Transfers. The Trustee will not consent to, or be a party to, any merger
or consolidation with another plan, or to a transfer of assets or liabilities to another plan, unless
immediately after the merger, consolidation or transfer, the surviving Plan provides each Participant
a benefit equal to or greater than the benefit each Participant would have received had the Plan
terminated immediately before the merger or consolidation or transfer. The Trustee possesses the
specific authority to enter into merger agreements or direct transfer of assets agreements with the
trustees of other retirement plans described in Code ~401(a), and to accept the direct transfer of plan
assets, or to transfer plan assets, as a party to any such agreement. If the Trustee accepts a transfer of
assets from other retirement plans described in Code ~401(a) (other than the Money Purchase Plan)
on behalf of a Participant, the Trustee shall utilize such assets to provide additional Accrued Benefits
for such Participant. The Trustee possesses the specific authority to accept a transfer of assets of all
or any portion of a Participant's account in the Monev Purchase Plan.
11.1
The Trustee may accept a direct transfer of plan assets on behalf of an Employee prior to the
date the Employee satisfies the Plan's eligibility conditions. If the Trustee accepts such a direct
transfer of plan assets, the Retirement Committee and Trustee will treat the Employee as a
Participant for all purposes of the Plan except the Employee will not accrue benefits until he actually
becomes a Participant in the Plan. If the Employee terminates employment with the Employer prior
to becoming a Participant, the Trustee will distribute his transferred assets to him as if they were
Employer-derived Accrued Benefits.
* * * * * * * * * * * * * * *
11.2
ARTICLE XII - OTHER PROVISIONS AFFECTING BENEFITS
12.01 Assignment or Alienation. Subject to Code ~414(p) (relating to qualified domestic
relations orders), neither a Participant nor a Beneficiary may anticipate assign or alienate (either at
law or in equity) any benefit provided under the Plan, and the Trustee will not recognize any such
anticipation, assignment or alienation. Furthermore, a benefit under the Plan is not subject to
attachment, garnishment, levy, execution or other legal or equitable process.
12.02 [Reserved]
12.03 [Reserved]
12.04 Distribution Upon Termination of Trust. If the Employer terminates the Plan, the
Trustee will determine the value ofthe Trust Fund as of the business day next following the date of
such termination.
(A) Allocation of Assets. Upon termination of the Plan, the Retirement Committee shall direct
the Trustee to allocate the assets of the Plan in a nondiscrimatory manner and in accordance with all
applicable regulations. Any residual assets remaining after satisfaction of all benefit liabilities shall
be distributed in accordance with Section 12.05.
12.05 Overfunding. If the Employer has overfunded the Plan at the time it terminates the
Plan, the Trustee must return the amount by which the Employer has overfunded the Plan to the
Employer, except to the extent the Plan allocates surplus assets to the Participants pursuant to written
procedures (including any necessary Plan amendments) adopted by the Employer incident to the
Plan's termination. The Employer must state by written request to the Trustee the amount of the
overfunding it wishes the Trustee to return to it after satisfying all liabilities under the terminated
Plan.
* * * * * * * * * * * * * * *
12.1
ARTICLE XIII - EMPLOYER ADMINISTRATIVE PROVISIONS
13.01 Information to Committee. The Employer must supply current information to the
Retirement Committee as to the name, date of birth, date of employment, annual compensation,
leaves of absence, Years of Service and date of termination of employment of each Employee who is,
or who will be eligible to become, a Participant under the Plan, together with any other information
which the Retirement Committee considers necessary. The Employer's records as to the current
information the Employer furnishes to the Retirement Committee are conclusive as to all persons.
13.02 No Liability. The Employer assumes no obligation or responsibility to any of its
Employees, Participants or Beneficiaries for any act of, or failure to act, on the part of its Retirement
Committee (unless the Employer is the Retirement Committee), the Trustee or the Plan
Administrator (unless the Employer is the Plan Administrator).
13.03 Indemnity of Plan Administrator and Committee. To the extent permitted under
applicable law, the Employer indemnifies and saves harmless the Plan Administrator, the members
of the Retirement Committee, and the Trustee, and each of them, from and against any and all loss
resulting from liability to which the Plan Administrator, the Retirement Committee, or the members
of the Retirement Committee and the Trustee may be subjected by reason of any act or conduct
(except willful misconduct or gross negligence) in their official capacities in the administration of
this Trust or Plan or both, including all expenses reasonably incurred in their defense, in case the
Employer fails to provide such defense.
* * * * * * * * * * * * * * *
13.1
ARTICLE XIV - PARTICIPANT ADMINISTRATIVE PROVISIONS
14.01 Beneficiary Designation. Any Participant may from time to time designate, in writing,
any person or persons, contingently or successively, to whom the Trustee will pay any applicable
death benefits under the Plan and the Participant may designate the form and method of payment.
The Retirement Committee will prescribe the form for the written designation of Beneficiary and,
upon the Participant's filing the form with the Retirement Committee, the form effectively revokes
all designations filed prior to that date by the same Participant. In the absence of spousal consent (as
required by Articles IX and X) to the Participant's Beneficiary designation, any waiver of the
qualified joint and survivor annuity or of the preretirement survivor annuity is not valid.
14.02 No Beneficiary Designation/Death of Beneficiary. If a Participant fails to name a
Beneficiary in accordance with Section 14.01, or if the Beneficiary named by a Participant
predeceases him, then the Trustee will pay the death benefit in accordance with Article X in the
following order of priority to:
(a) The Participant's surviving spouse;
(b) The Participant's surviving children, including adopted children, in equal shares;
(c) The Participant's surviving parents, in equal shares; or
(d) The legal representative of the Participant's estate.
If the Beneficiary does not predecease the Participant, but dies prior to distribution of his
share of the Participant's entire death benefit, the Trustee will pay the remaining death benefit to the
Beneficiary's estate unless the Participant's Beneficiary designation provides otherwise. The
Retirement Committee will direct the Trustee as to the method and to whom the Trustee will make
payment under this Section 14.02.
14.03 Personal Data to Committee. Each Participant and each Beneficiary of a deceased
Participant must furnish to the Retirement Committee such evidence, data or information as the
Retirement Committee considers necessary or desirable for the purpose of administering the Plan.
The provisions of this Plan are effective for the benefit of each Participant upon the condition
precedent that each Participant will furnish promptly full, true and complete evidence, data and
information when requested by the Retirement Committee, provided the Retirement Committee
advises each Participant of the effect of his failure to comply with its request.
14.04 Address for Notification. Each Participant and each Beneficiary of a deceased
Participant must file with the Retirement Committee from time to time, in writing, his post office
address and any change of post office address. Any communication, statement or notice addressed to
a Participant, or Beneficiary, at his last post office address filed with the Retirement Committee, or
as shown on the records of the Employer, binds the Participant, or Beneficiary, for all purposes of
this Plan.
14.1
14.05 Notice of Change in Terms. The Plan Administrator, within the time prescribed by
applicable law, must furnish all Participants and Beneficiaries a summary plan description and all
other information required by applicable law.
14.06 Litigation Against the Trust. A court of competent jurisdiction may authorize any
appropriate equitable relief to enforce any provisions of applicable law or the terms of the Plan. A
fiduciary may receive reimbursement of expenses properly and actually incurred in the performance
of his duties with the Plan.
14.07 Information Available. Any Participant in the Plan or any Beneficiary may examine
copies of the plan description, this Plan and Trust, or any other instrument under which the Plan was
established or is operated. The Plan Administrator will maintain all of the items listed in this Section
14.07 in his office, or in such other place or places as he may designate from time to time, for
examination during reasonable business hours. Upon the written request of a Participant or
Beneficiary the Plan Administrator must furnish him with a copy of any item listed in this Section
14.07. The Plan Administrator may make a reasonable charge to the requesting person for the copy
so furnished.
14.08 Appeal Procedure for Denial of Benefits. A Participant or a Beneficiary ("Claimant")
may file with the Retirement Committee a written claim for benefits, if the Participant or Beneficiary
determines the distribution procedures of the Plan have not provided him his proper Nonforfeitable
Accrued Benefit. The Retirement Committee must render a decision on the claim within 60 days of
the Claimant's written claim for benefits.
(A) Notice of Denial. The Plan Administrator must provide adequate notice in writing to any
Participant or to any Beneficiary ("Claimant") whose claim for benefits under the Plan the
Retirement Committee has denied. The Plan Administrator's notice of denial of benefits must
identify the name of each member of the Retirement Committee and the name and address of the
Retirement Committee member to whom the claimant may forward his appeal. The Plan
Administrator's notice to the Claimant must also set forth:
(1) The specific reason for the denial;
(2) Specific references to pertinent Plan provisions on which the Retirement Committee
based its denial;
(3) A description of any additional material and information needed for the Claimant to
perfect his claim and an explanation of why the material or information is needed; and
(4) That any appeal the Claimant wishes to make of the adverse determination must be in
writing to the Retirement Committee within 75 days after receipt ofthe Plan Administrator's
notice of denial of benefits. The Plan Administrator's notice must further advise the Claimant
that his failure to appeal the action to the Retirement Committee in writing within the 75-day
period will render the Retirement Committee's determination final, binding and conclusive.
14.2
(B) Appeal. If the Claimant should appeal to the Retirement Committee, he, or his duly
authorized representative, may submit, in writing, whatever issues and comments he, or his duly
authorized representative, feels are pertinent. The Claimant, or his duly authorized representative,
may review pertinent Plan documents. The Retirement Committee will re-examine all facts related to
the appeal and make a final determination as to whether the denial of benefits is justified under the
circumstances. The Retirement Committee must advise the Claimant of its decision within 60 days
of the Claimant's written request for review, unless special circumstances (such as a hearing) would
make the rendering of a decision within the 60-day limit unfeasible, but in no event may the
Retirement Committee render a decision respecting a denial for a claim for benefits later than 120
days after its receipt of a request for review.
* * * * * * * * * * * * * * *
14.3
ARTICLE XV - RETIREMENT COMMITTEE - DUTIES WITH RESPECT TO
PARTICIPANTS' ACCRUED BENEFITS
15.01 Members' Compensation, Expenses. The Employer must appoint an Retirement
Committee to administer the Plan, the members ofwhich mayor may not be Participants in the Plan,
or which may be the Plan Administrator acting alone. In the absence of an Retirement Committee
appointment, the Plan Administrator assumes the powers, duties and responsibilities of the
Retirement Committee. The members of the Retirement Committee will serve without compensation
for services as such, but the Employer will pay all expenses ofthe Retirement Committee, except to
the extent the Trust properly pays the expenses, pursuant to Article XVI.
15.02 Term. Each member of the Retirement Committee serves until the appointment of his
successor.
15.03 Powers. In case of a vacancy in the membership of the Retirement Committee, the
remaining members of the Retirement Committee may exercise any and all of the powers, authority,
duties and discretion conferred upon the Retirement Committee pending the filling of the vacancy.
15.04 General.
(A) Powers and duties. The Retirement Committee has the following powers and duties:
(1) To select a Secretary, who need not be a member of the Retirement Committee;
(2) To determine the rights of eligibility of an Employee to participate in the Plan, the
value of a Participant's Accrued Benefit and the Nonforfeitable percentage of each
Participant's Accrued Benefit;
(3) To adopt rules of procedure and regulations necessary for the proper and efficient
administration of the Plan provided the rules are not inconsistent with the terms of this
Agreement;
(4) To construe and enforce the terms ofthe Plan and the rules and regulations it adopts
including interpretation of the Plan documents and documents related to the Plan's operation
and the discretion to make factual determinations necessary to the proper administration of
the Plan;
(5) To direct the Trustee as respects the crediting and distribution of the Trust;
(6) To review and render decisions respecting a claim for (or denial of a claim for) a
benefit under the Plan;
(7) To furnish the Employer with information which the Employer may require for tax or
other purposes;
15.1
(8) To engage the service of agents whom it may deem advisable to assist it with the
performance of its duties;
(9) To engage the services of an Investment Manager or Managers, each of whom will
have full power and authority to manage, acquire or dispose (or direct the Trustee with
respect to acquisition or disposition) of any Plan asset under its control;
(10) To establish and maintain a funding standard account and to make credits and charges
to the account to the extent required by and in accordance with the provisions of the
applicable law.
The Retirement Committee will exercise all of its powers, duties and discretion under the
Plan in a uniform and nondiscriminatory manner.
15.05 Funding Policy. The Retirement Committee will review, not less often than annually,
all pertinent Employee information and Plan data in order to establish the funding policy of the Plan
and to determine the appropriate methods of carrying out the Plan's objectives. The Retirement
Committee must communicate periodically, as it deems appropriate, to the Trustee and to any Plan
Investment Manager the Plan's short-term and long-term financial needs so investment policy can be
coordinated with Plan financial requirements.
15.06 Manner of Action. The decision of a majority ofthe members appointed and qualified
controls.
15.07 Authorized Representative. The Retirement Committee may authorize anyone of
its members, or its Secretary, to sign on its behalf any notices, directions, applications, certificates,
consents, approvals, waivers, letters or other documents. The Retirement Committee must evidence
this authority by an instrument signed by all members and filed with the Trustee.
15.08 Interested Member. No member of the Retirement Committee may decide or
determine any matter concerning the distribution, nature or method of settlement of his own benefits
under the Plan, except in exercising an election available to that member in his capacity as a
Participant, unless the Plan Administrator is acting alone in the capacity of the Retirement
Committee.
15.09 Participant Records. The Retirement Committee will keep such records and will
prepare such reports concerning Participants' Accrued Benefits as applicable law and the Code
require. Upon a Participant's written request, the Retirement Committee will furnish, or will direct
the Plan Administrator to furnish, the Participant such information.
15.10 Unclaimed Accrued Benefit - Procedure. The Plan does not require either the Trustee
or the Retirement Committee to search for, or ascertain the whereabouts of, any Participant or
Beneficiary. At the time the Participant's or Beneficiary's benefit becomes distributable under the
Plan, the Retirement Committee, by certified or registered mail addressed to his last known address
of record with the Retirement Committee or the Employer, must notify any Participant, or
Beneficiary, that he is entitled to a distribution under this Plan. The notice must quote the provisions
15.2
of this Section 15.10 and otherwise must comply with the notice requirements of Article X. If the
Participant, or Beneficiary, fails to claim his distributive share or make his whereabouts known in
writing to the Retirement Committee within 6 months from the date of mailing of the notice, the
Retirement Committee will treat the Participant's or Beneficiary's unclaimed payable Accrued
Benefit as forfeited. The Employer will use the amounts representing the forfeited Accrued Benefit
to reduce its contribution for future Plan Years.
If a Participant or Beneficiary who has incurred a forfeiture of his Accrued Benefit under this
Section 15.10 makes a claim, at any time, for his forfeited Accrued Benefit, the Retirement
Committee must restore the Participant's or Beneficiary's forfeited Accrued Benefit. The Retirement
Committee must direct the Trustee to distribute the Participant's or Beneficiary's restored Accrued
Benefit as soon as administratively practicable following restoration ofthe forfeited Accrued Benefit,
subject to the consent requirements of Article X.
* * * * * * * * * * * * * * *
15.3
ARTICLE XVI - TRUSTEE, POWERS AND DUTIES
16.01 Acceptance. The Trustee accepts the Trust created under the Plan and agrees to
perform the obligations imposed.
16.02 Receipt of Contributions. The Trustee is accountable to the Employer for the funds
contributed to it by the Employer, but does not have any duty to see that the contributions received
comply with the provisions of the Plan. The Trustee is not obliged to collect any contributions from
the Employer, nor is obliged to see that funds deposited with it are deposited according to the
provisions of the Plan.
16.03 Investment Powers.
(A) Trustee Powers. The Trustee has full discretion and authority with regard to the investment of
the Trust Fund, except with respect to a Plan asset under the control or direction of a properly
appointed Investment Manager. The Trustee must coordinate its investment policy with Plan
financial needs as communicated to it by the Retirement Committee.
(1) Investment Powers. The Trustee is authorized and empowered, but not by way of
limitation, with the following powers, rights and duties:
(a) To invest any part or all of the Trust Fund in any common or preferred stocks,
open-end or closed-end mutual funds (including mutual funds for which the Trustee
or its affiliate serves as an investment advisor, sponsor, distributor, custodian,
transfer agent, administrator, registrar in any other capacity), put and call options
traded on a national exchange, United States retirement plan bonds, corporate bonds,
debentures, convertible debentures, commercial paper, U.S. Treasury bills, U.S.
Treasury notes and other direct or indirect obligations of the United States
Government or its agencies, improved or unimproved real estate situated in the
United States, limited partnerships, insurance contracts of any type, mortgages, notes
or other property of any kind, real or personal, to buy or sell options on common
stock on a nationally recognized exchange with or without holding the underlying
common stock, to buy and sell commodities, commodity options and contracts for the
future delivery of commodities, and to make any other investments the Trustee deems
appropriate, as a prudent man would do under like circumstances with due regard for
the purposes of this Plan. Any investment made or retained by the Trustee in good
faith is proper but must be of a kind constituting a diversification considered by law
suitable for trust investments.
(b) To retain in cash so much of the Trust Fund as it may deem advisable to
satisfY liquidity needs of the Plan and to deposit any cash held in the Trust Fund in a
bank account at reasonable interest.
( c) To invest, ifthe Trustee is a bank or similar financial institution supervised by
16.1
the United States or by a State, in any type of deposit of the Trustee (or of a bank
related to the Trustee within the meaning of Code ~414(b)) at a reasonable rate of
interest or in a common trust fund, as described in Code S584, or collective
investment fund, the provisions of which govern the investment of such assets and
which the Plan incorporates by this reference which the Trustee (or its affiliate, as
defined in Code ~ 1504) maintains exclusively for the collective investment of money
contributed by the bank (or the affiliate) in its capacity as trustee and which conforms
to the rules of the Comptroller of the Currency.
(d) To manage, sell, contract to sell, grant options to purchase, convey, exchange,
transfer, abandon, improve, repair, insure, lease for any term even though
commencing in the future or extending beyond the term of the Trust, and otherwise
deal with all property, real or personal, in such manner, for such considerations and
on such terms and conditions as the Trustee decides.
(e) To credit and distribute the Trust as directed by the Retirement Committee.
The Trustee is not obliged to inquire as to whether any payee or distributee is entitled
to any payment or whether the distribution is proper or within the terms of the Plan,
or as to the manner of making any payment or distribution. The Trustee is
accountable only to the Retirement Committee for any payment or distribution made
by it in good faith on the order or direction of the Retirement Committee.
(f) To borrow money, to assume indebtedness, extend mortgages and encumber
by mortgage or pledge.
(g) To compromise, contest, arbitrate or abandon claims and demands, in its
discretion.
(h) To have with respect to the Trust all of the rights of an individual owner,
including the power to give proxies, to participate in any voting trusts, mergers,
consolidations or liquidations, and to exercise or sell stock subscriptions or
conversion rights.
(i) To lease for oil, gas and other mineral purposes and to create mineral
severances by grant or reservation; to pool or unitize interests in oil, gas and other
minerals; and to enter into operating agreements and to execute division and transfer
orders.
(j) To hold any securities or other property in the name of the Trustee or its
nominee, with depositories or agent depositories or in another form as it may deem
best, with or without disclosing the trust relationship.
(k) To perform any and all other acts in its judgment necessary or appropriate for
the proper and advantageous management, investment and distribution ofthe Trust.
16.2
(1) To retain any funds or property subject to any dispute without liability for the
payment of interest, and to decline to make payment or delivery of the funds or
property until final adjudication is made by a court of competent jurisdiction.
(m) To file all tax returns required of the Trustee.
(n) To furnish to the Employer, the Plan Administrator and the Retirement
Committee an annual statement of account showing the condition of the Trust Fund
and all investments, receipts, disbursements and other transactions effected by the
Trustee during the Plan Year covered by the statement and also stating the assets of
the Trust held at the end of the Plan Year, which accounts are conclusive on all
persons, including the Employer, the Plan Administrator and the Retirement
Committee, except as to any act or transaction concerning which the Employer, the
Plan Administrator or the Retirement Committee files with the Trustee written
exceptions or objections within 90 days after the receipt of the accounts or for which
applicable law authorizes a longer period within which to object.
(0) To begin, maintain or defend any litigation necessary in connection with the
administration of the Plan, except that the Trustee is not obliged or required to do so
unless indemnified to its satisfaction.
(B) Participant Loans. This Plan does not permit loans to Participants or to Beneficiaries.
16.04 Records and Statements. The records of the Trustee pertaining to the Plan must be
open to the inspection of the Plan Administrator, the Retirement Committee and the Employer at all
reasonable times and may be audited from time to time by any person or persons as the Employer,
Plan Administrator or Retirement Committee may specify in writing. The Trustee must furnish the
Plan Administrator or Retirement Committee with whatever information relating to the Trust Fund
the Plan Administrator or Retirement Committee considers necessary.
16.05 Fees and Expenses From Fund. The Trustee will receive reasonable annual
compensation as may be agreed upon from time to time between the Employer and the Trustee. No
person who is receiving full pay from the Employer may receive compensation for services as
Trustee. The Trustee will pay from the Trust Fund all fees and expenses reasonably incurred by the
Plan, to the extent such fees and expenses are for the ordinary and necessary administration and
operation of the Plan, unless the Employer pays the fees and expenses. Any fee or expense paid,
directly or indirectly, by the Employer is not an Employer contribution to the Plan, provided the fee
or expense relates to the ordinary and necessary administration of the Fund.
16.06 Parties to Litigation. Except as otherwise provided by applicable law, no Participant,
or Beneficiary is a necessary party or is required to receive notice of process in any court proceeding
involving the Plan, the Trust Fund or any fiduciary of the Plan. Any final judgment entered in any
16.3
proceeding will be conclusive upon the Employer, the Plan Administrator, the Retirement
Committee, the Trustee, Participants and Beneficiaries.
16.07 Professional Agents. The Trustee may employ and pay from the Trust Fund
reasonable compensation to agents, attorneys, accountants and other persons to advise the Trustee as
in its opinion may be necessary. The Trustee may delegate to any agent, attorney, accountant or other
person selected by it any non-Trustee power or duty vested in it by the Plan, and the Trustee may act
or refrain from acting on the advice or opinion of any agent, attorney, accountant or other person so
selected.
16.08 Distribution Directions. The Trustee may make distribution under the Plan in cash or
property, or partly in each, at its fair market value as determined by the Trustee. For purposes of a
distribution to a Participant or to a Participant's designated Beneficiary or surviving spouse,
"property" includes a Nontransferable Annuity Contract, provided the contract satisfies the
requirements of this Plan. If no one claims a payment or distribution made from the Trust, the
Trustee must promptly notifY the Retirement Committee and then dispose of the payment in
accordance with the subsequent direction of the Retirement Committee.
16.09 Third Party/Multiple Trustees. No person dealing with the Trustee is obligated to see
to the proper application of any money paid or property delivered to the Trustee, or to inquire
whether the Trustee has acted pursuant to any of the terms of the Plan. Each person dealing with the
Trustee may act upon any notice, request or representation in writing by the Trustee, or by the
Trustee's duly authorized agent, and is not liable to any person in so acting. The certificate of the
Trustee that it is acting in accordance with the Plan will be conclusive in favor of any person relying
on the certificate. If more than two persons act as Trustee, a decision ofthe majority of such persons
controls with respect to any decision regarding the administration or investment ofthe Trust Fund or
any portion of the Trust Fund with respect to which such persons act as Trustee. However, the
signature of only one Trustee is necessary to effect any transaction on behalf of the Trust.
16.10 Resignation. The Trustee may resign its position at any time by giving 30 days
written notice in advance to the Employer and to the Retirement Committee. If the Employer fails to
appoint a successor Trustee within 60 days of its receipt of the Trustee's written notice of resignation,
the Trustee will treat the Employer as having appointed itself as Trustee and as having filed its
acceptance of appointment with the former Trustee.
16.11 Removal. The Employer, by giving 30 days written notice in advance to the Trustee,
may remove any Trustee. In the event of the resignation or removal of a Trustee, the Employer must
appoint a successor Trustee if it intends to continue the Plan. If two or more persons hold the
position of Trustee, in the event ofthe removal of one such person, during any period the selection of
a replacement is pending, or during any period such person is unable to serve for any reason, the
remaining person or persons will act as the Trustee.
16.12 Interim Duties and Successor Trustee. Each successor Trustee succeeds to the title to
the Trust vested in his predecessor by accepting in writing his appointment as successor Trustee and
16.4
by filing the acceptance with the former Trustee and the Retirement Committee without the signing
or filing of any further statement. The resigning or removed Trustee, upon receipt of acceptance in
writing of the Trust by the successor Trustee, must execute all documents and do all acts necessary to
vest the title of record in any successor Trustee. Each successor Trustee has and enjoys all of the
powers, both discretionary and ministerial, conferred under this Agreement upon his predecessor. A
successor Trustee is not personally liable for any act or failure to act of any predecessor Trustee,
except as required under applicable law. With the approval of the Employer and the Retirement
Committee, a successor Trustee, with respect to the Plan, may accept the account rendered and the
property delivered to it by a predecessor Trustee without incurring any liability or responsibility for
so doing.
16.13 Valuation of Trust. The Trustee must value the Trust Fund as of each Accounting
Date to determine the fair market value of the assets in the Trust. The Trustee also must value the
Trust Fund on such other dates as directed in writing by the Retirement Committee.
16.14 Limitation on Liability - If Investment Manager or Independent Fiduciary Appointed.
The Trustee is not liable for the acts or omissions of any Investment Manager the Retirement
Committee may appoint, nor is the Trustee under any obligation to invest or otherwise manage any
asset ofthe Plan which is subject to the management of a properly appointed Investment Manager. In
addition, any Investment Manager appointed by the Retirement Committee shall have the sole
responsibility for voting proxies for those assets of the Plan that it manages. The Retirement
Committee, the Trustee and any properly appointed Investment Manager may execute a letter
agreement as a part of this Plan delineating the duties, responsibilities and liabilities of the
Investment Manager with respect to any part of the Trust Fund under the control of the Investment
Manager.
16.15 Investment in Group Trust Fund / Combined Trust. At the Employer's discretion, the
Trustee, for collective investment purposes, may combine into one trust fund the Trust created under
this Plan with the Trust created under any other qualified retirement plan the Employer maintains.
However, the Trustee must maintain separate records of account for the assets of each Trust in order
to reflect properly each Participant's Accrued Benefit under the planes) in which he is a Participant.
* * * * * * * * * * * * * * *
16.5
ARTICLE XVII - INVESTMENT IN INSURANCE OR ANNUITY CONTRACTS
17.01 Purchase of Life Insurance and Annuity Contracts. The Plan does not provide
incidental life insurance benefits for Participants.
* * * * * * * * * * * * * * *
17.1
ARTICLE XVIII - MISCELLANEOUS
18.01 Evidence. Anyone required to give evidence under the terms of the Plan may do so by
certificate, affidavit, document or other information which the person to act in reliance may consider
pertinent, reliable and genuine, and to have been signed, made or presented by the proper party or
parties. Both the Retirement Committee and the Trustee are fully protected in acting and relying
upon any evidence described under the immediately preceding sentence.
18.02 No Responsibility for Employer Action. Neither the Trustee nor the Retirement
Committee has any obligation or responsibility with respect to any action required by the Plan to be
taken by the Employer, any Participant or eligible Employee, or for the failure of any of the above
persons to act or make any payment or contribution, or to otherwise provide any benefit
contemplated under this Plan. Furthermore, the Plan does not require the Trustee or the Retirement
Committee to collect any contribution required under the Plan, or to determine the correctness ofthe
amount of any Employer contribution. Neither the Trustee nor the Retirement Committee need
inquire into or be responsible for any action or failure to act on the part of the others, or on the part
of any other person who has any responsibility regarding the management, administration or
operation of the Plan, whether by the express terms of the Plan or by a separate agreement authorized
by the Plan or by the provisions of applicable law.
18.03 Fiduciaries Not Insurers. The Trustee, the Retirement Committee, the Plan
Administrator and the Employer do not guarantee, to any extent, the Trust Fund from loss or
depreciation. The Employer does not guarantee the payment of any money which may be or becomes
due to any person from the Trust Fund. The liability of the Retirement Committee and the Trustee to
make any payment from the Trust Fund at any time and all times is limited to the then available
assets of the Trust.
18.04 Waiver of Notice. Any person entitled to notice under the Plan may waive the notice,
unless applicable law specifically or impliedly prohibits such a waiver.
18.05 Successors. The Plan is binding upon all persons entitled to benefits under the Plan,
their respective heirs and legal representatives, upon the Employer, its successors and assigns, and
upon the Trustee, the Retirement Committee, the Plan Administrator and their successors.
18.06 Word Usage. Words used in the masculine also apply to the feminine where
applicable, and wherever the context of the Employer's Plan dictates, the plural includes the singular
and the singular includes the plural.
18.07 State Law. Florida law will determine all questions arising with respect to the
provisions of this Agreement.
18.08 Employment Not Guaranteed. Nothing contained in this Plan, or with respect to the
establishment of the Trust, or any modification or amendment to the Plan or Trust, or in the creation
of any Account, or the payment of any benefit, gives any Employee, Employee-Participant or any
18.1
Beneficiary any right to continue employment, any legal or equitable right against the Employer, or
Employee of the Employer, or against the Trustee, or its agents or employees, or against the Plan
Administrator, except as expressly provided by the Plan, the Trust, by a separate agreement or by
applicable law.
* * * * * * * * * * * * * * *
18.2
ARTICLE XIX - EXCLUSIVE BENEFIT, AMENDMENT, TERMINATION
19.0 I Exclusive Benefit. Except as provided under Article III and Article XlI, the Employer
has no beneficial interest in any asset of the Trust and no part of any asset in the Trust may ever
revert to or be repaid to an Employer, either directly or indirectly; nor prior to the satisfaction of all
liabilities with respect to the Participants and their Beneficiaries under the Plan, may any part of the
corpus or income of the Trust Fund, or any asset ofthe Trust, be (at any time) used for, or diverted
to, purposes other than the exclusive benefit of the Participants or their Beneficiaries. However, if
the Commissioner ofInternal Revenue, upon the Employer's request for initial approval of this Plan,
determines that the Trust created under the Plan is not a qualified trust exempt from Federal income
tax, then (and only then) the Trustee, upon written notice from the Employer, will return the
Employer's contributions (and increment attributable to the contributions) to the Employer. The
Trustee must make the return of the Employer contribution under this Section 19.0 I within one year
of a final disposition of the Employer's request for initial approval of the Plan. The Employer's Plan
and Trust will terminate upon the Trustee's return ofthe Employer's contributions.
19.02 Amendment By Employer.
(A) Amendment of Plan. The Employer has the right at any time and from time to time:
(1) To amend this Agreement in any manner it deems necessary or advisable in order to
qualify (or maintain qualification of) this Plan and the Trust created under it under the
provisions of the Code s401(a); and
(2) To amend this Agreement in any other manner.
No amendment may authorize or permit any of the Trust Fund (other than the part which is
required to pay administration expenses) to be used for or diverted to purposes other than for the
exclusive benefit of the Participants or their Beneficiaries or estates. No amendment may cause or
permit any portion of the Trust Fund to revert to or become the property of the Employer. The
Employer also may not make any amendment which affects the rights, duties or responsibilities of
the Trustee, the Plan Administrator or the Retirement Committee without the written consent of the
affected Trustee, the Plan Administrator or the affected member of the Retirement Committee. The
Employer must make all amendments in writing. Each amendment must state the date to which it is
either retroactively or prospectively effective.
19.03 Discontinuance. The Employer has the right, at any time, to suspend or discontinue its
contributions under the Plan, and to terminate, at any time, this Plan and the Trust created under this
Agreement. The Plan will terminate upon the first to occur of the following:
(a) The date terminated by action of the Employer; or
(b) The dissolution or merger of the Employer, unless the successor makes provision to
continue the Plan, in which event the successor must substitute itself as the Employer under
19.1
this Plan. Any termination of the Plan resulting from this paragraph (b) is not effective until
compliance with any applicable notice requirements.
19.04 Full Vesting on Termination. Upon either full or partial termination of the Plan, an
affected Participant's right to his Accrued Benefit is 100% Nonforfeitable, irrespective of the
Nonforfeitable percentage which otherwise would apply under Article VIII.
19.05 Termination.
(A) Procedure. Upon termination of the Plan, in order to liquidate the Trust, the Retirement
Committee shall either direct the Trustee to:
(a) distribute the present value of the Nonforfeitable Accrued Benefit of each Participant
in one lump sum; or
(b) distribute the Nonforfeitable Accrued Benefit of the Participants by purchasing a
deferred annuity contract for each Participant; or
(c) directly transfer the present value of the Nonforfeitable Accrued Benefit of each
Participant to another retirement plan described in Code s401(a); or
(d) utilize any combination of the methods referenced in clauses (a), (b) or (c) above, as
determined in the sole discretion of the Retirement Committee.
The Retirement Committee, shall by resolution, specify the method ofliquidating the Trust
upon termination of the Plan. The Trust will continue until the Trustee in accordance with the
direction of the Retirement Committee has distributed all of the benefits under the Plan.
(B) Freezing Plan/Mergers or Transfers. A resolution or amendment to freeze all future benefit
accrual but otherwise to continue maintenance of this Plan, is not a termination for purposes of this
Section 19.05. Furthermore, a merger or direct transfer described in Section 11.05 ofthe Plan is not a
termination for purposes of the special distribution provisions described in Section 19.05(A).
19.2
ARTICLE A
APPENDIX TO PLAN AND TRUST AGREEMENT
USERRA Model Amendment
Notwithstanding any provision of this Plan to the contrary, contributions, benefits and service
credit with respect to qualified military service will be provided in accordance with Code ~414(u).
19.3
IN WITNESS WHEREOF, the Employer and the Trustee have executed this Plan and Trust,
as modified herein, in Winter Springs, Florida this day of
2002.
EMPLOYER:
CITY OF WINTER SPRINGS
By:
Print
Print
Its
TRUSTEE:
BOARD OF TRUSTEES OF THE
CITY OF WINTER SPRINGS
By:
Print
Print
Its
19.4
JULY 21,2003
WORKSHOP MINUTES
CITY OF WINTER SPRINGS
MINUTES
CITY COMMISSION
WORKSHOP- JULY 21, 2003
PAGE20F8
Next, Ms. Prangoul then pointed out that "The State of Florida maintains a Website
where they estimate - revenues to us and two (2) of the revenue sources came in a bit
higher than we had anticipated - we can expect about $25,000.00 more in our
Communication Services Tax monies that ultimately get transferred to the General
Pund." Ms. Prangoul added, "Our Revenue Sharing increased by $85,000.00."
Employee Benefits:
Discussion ensued on issues related to the Pension Plan. Commissioner Edward
Martinez, Jr. asked, "What would happen if we went 8/60 to those that are approaching
the fifty-five (55) or very close to fifty-five (55) and would want to get out, once this Plan
goes into effect - are they going to be greatly affected?" Manager McLemore stated,
"No." Commissioner Martinez added, "I am concerned about the employees." Manager
McLemore added, "As long as you meet your financing requirements, the employees
won't be affected at all." Mayor Bush inquired, "If someone plans to retire at fifty-five
(55), and then the Commission passes this and raises it to sixty (60), how does it affect
the person who is still going to retire at fifty-five (55)?" Manager McLemore stated, "It
does not affect them."
Mayor Bush then said to Manager McLemore, "Based upon everything that you have
seen, your recommendation is still the same?" Manager McLemore stated, "Yes."
Mayor Bush then spoke about a recent Workshop where Commissioner Michael S. Blake
and a Consultant discussed issues related to Employee Benefits - Mayor Bush inquired,
"Did Commissioner Blake give him the questions that he wanted and did they give him
answers?" Manager McLemore responded, "That meeting has not taken place yet - we
have sent additional information to Commissioner Blake. I do not know what that has
done. At this point in time, there still has not been a meeting between Commissioner
Blake, the Actuary, and myself, which is what you had asked for."
Manager McLemore stated, "Your investment assumptions are demonstrating that they
are sound; and as long as you are willing to accept - the average at sixty (60), which your
Plan shows is a good, sound recommendation, and a thirty (30) year amortization, we
don't need to do anything. If you want to reduce the thirty (30) year amortization down
to a fifteen (15) year amortization, then we will have to increase the percentage of
contributions by 2 [percent]."
Deputy Mayor Robert S. Miller said, "I am comfortable that there is nothing really wrong
with sixty (60)." Commissioner Martinez stated, "Based on what I have heard tonight, I
don't have any objection with age sixty (60)." Commissioner Sally McGinnis stated, "I
~";,ree." Mayor Bush summarized that "The consensus is - eight percent (8%) and age
~ixty (60)."
JANUARY 27, 2003
COMMISSION AGENDA
REGULAR ITEMS
H-I H-2 H-3 H-4 AND H-5
, , , ,
(without attachments)
and
JANUARY 27, 2003 COMMISSION
MEETING MINUTES
3~
012703 REGULAR H 1 PENSION PLAN
Page I of2
COMMISSION AGENDA
ITEM
B-1
CONSENT
INFORMATIONAL
PUBLIC HEARING
REGULAR X
January 27,2003
Meeting
MG~ IDEPT
Authorization
REQUEST: City Manager requesting the City Commission to reconsider a decision made on
December 9, 2002 related to Regular Agenda item "C" amending the benchmark earnings rate
for employee contributions in the City Pension Plan from the thirty year Treasury to the twenty
year Treasury.
PURPOSE: This agenda item is needed to give the Commission the opportunity to reconsider
its decision on the above referenced interest rate policy based upon new information.
CONSIDERATIONS:
On December 9, 2002 the Commission approved Commissioner Blake's recommendation that
the interest payout on benchmark earnings on employee contributions be changed from the thirty
year treasury securities to twenty year treasury securities based upon its belief that its twenty
year security would be more reflective of reality.
Subsequent review by staff indicates that the Treasury Department discontinued the computation
and publication of 20 year treasury securities rates in December 1986 due to the discontinuance
of the issuance of the twenty year treasury bond.
Staff believes the interest rate applied to employee contribution must be benchmarked against a
credible published benchmark recognized by the financial community. The most often
recognized and published benchmark of earnings is the thirty year treasury and the ten year
treasury. The ten year treasury would actually lower current interest earnings. Based upon this
new information staff is recommending that the Commission reverse and reinstate the thirty year
treasury as the official eamings rate for employee contributions in the City's Pension Plan.
It should be noted that many pension plans do not provide any interest earnings for employee
contributions returned to employees.
012703 REGULAR H 1 PENSION PLAN
Page 2 of2
FUNDING: Not Applicable.
RECOMMENDATIONS:
It is recommended that the Commission adopt the thirty year treasury rate as the official earning
benchmark for employee contributions in the City's Pension Plan, and that the Pension Plan
Resolution (Number 2002-39) and the Pension Plan Document be amended accordingly.
ATTACHMENTS:
Donald Chapman Email of January 23,2003
COMMISSION ACTION:
012703 REGULAR H 2 PENSION PLAN
Page I of I
33
COMMISSION AGENDA
ITEM
H-2
CONSENT
INFORMATIONAL
PUBLIC HEARING
REGULAR X
January 27,2003
Meeting
MG~M /DEPT
Authorization
REQUEST: City Manager requesting the City Commission receive information regarding the
30 year benefit period in the proposed Pension Resolution.
PURPOSE: This agenda item is needed to answer a question asked by the City Commission
regarding the 30 year benefit period proposed in the updated Pension Resolution.
CONSIDERATIONS:
Question: At the December 9, 2002 Commission meeting the Commission asked if the 30 year
benefit period begins at the date of employment or the last 30 years worked.
Answer: The 30 year benefit period begins with the date of employment.
Recommendation: It is recommended that the provision be sustained as recommended in the
new Pension Plan Resolution and Plan Document.
FUNDING:
There are no funding impacts if the policy is sustained.
RECOMMENDATIONS:
It is recommended that the pension benefit period be sustained as recommended in Resolution
Number 2002-39 amending the City's Pension Plan Document.
ATTACHMENTS:
COMMISSION ACTION:
012703 REGULAR H 3 PENSION PLAN
Page 1 of2
3~
COMMISSION AGENDA
ITEM
H-3
CONSENT
INFORMATIONAL
PUBLIC HEARING
REGULAR X
January 27, 2003
Meeting
MGR~ ~ /DEPT
.. Authorization
REQUEST: City Manager requesting the City Commission receive information regarding the
cash-out provisions of the recommended Pension Plan Resolution and Plan Document.
PURPOSE: This agenda item is needed to clarify cash out provisions in the proposed Pension
Plan Resolution Number 2002-39, and Plan Document.
CONSIDERATIONS:
At the December 9, 2002 Commission meeting three questions were asked about cash out
provisions of the proposed Resolution as follows:
Question 1: Is the cash-out provision automatic or elective?
Answer: The cash-out provisions are automatic.
Recommendation: It is recommended that the recommended cash out provlSlon remam
automatic and that all applicable sections be amended to include the automatic provision.
Question 2: If an employee has 2% annuity and 3% annuity, are the cash out provisions
aggregated to $3,500 or allowed to accumulate to a total of $3,500 in each period?
Answer: The $3,500 limit is aggregated from the 2% period and the 3%.
Recommendation: It is recommended that the language be amended to clarify that it IS
aggregated.
..
012703 REGULAR H 3 PENSION PLAN
Page 2 of2
Question 3: If electives are allowed what is the time frame to make the elective, and how many
times do you have to make an elective?
Answer: Not applicable since the provision is automatic rather than elective.
Recommendation: It is recommended that the automatic ash out provision be sustained as
proposed.
FUNDING: Not Applicable.
RECOMMENDATIONS:
It is recommended that the automatic cash out provision be sustained as recommended.
ATTACHMENTS: None.
COMMISSION ACTION:
012703 REGULAR H 4 PENSION PLAN
Page I of2
J-r
COMMISSION AGENDA
ITEM
H-4
CONSENT
INFORMATIONAL
PUBLIC HEARING
REGULAR X
January 27,2003
Meeting
. MGR Rpt /DEPT
Authorization
REQUEST: City Manager requesting the City Commission to receive an updated report on the
financial status of the City's Pension Plan and to provide any directive it deems appropriate.
PURPOSE: This agenda item is needed to provide the Commission with an update of the
financial status of the City's Pension Plan and to fulfill annual audit requirements of the plan for
year ending September 30,2003.
CONSIDERATIONS:
The report proposed by the City's Pension Actuaries demonstrates the following:
A. Investment .has declined as a result of stock market activity.
B. However, there is no funding crisis in the plan at this time.
a. Contributions are on target for the current year. The goal was to achieve 100%
funding of the present value of accrued benefits in 15-17 years.
b. Today, the present yalue of vested accrued benefits is 68% funded after just 3
years experience; not as good as we had hoped, but none the less, a very healthy
funding of vested accrued benefits.
FUNDING: N/ A
RECOMMENDATIONS:
Based upon the report it is recommended that the City not take any actions relative to
contributions rates or actuarial assumptions upon which the plan is built until the completion of
financial period 2003, analyze the data from 2003, and make any changes indicated
012703 REGULAR H 4 PENSION PLAN
Page 2 of2
ATTACHMENTS:
COMMISSION ACTION:
f
. v
012703 REGULAR H 5 PENSION PLAN
Page I of5
J,
COMMISSION AGENDA
ITEM H-5
CONSENT
INFORMATIONAL
PUBLIC HEARING
REGULAR X
January 27,2003
,
Meeting
MGR P 11 /DEPT
Authorization
REQUEST: City Manager requesting the City Commission to approve Section 4 of
the proposed rewrite of the City's Pension Plan providing for the purchase of employee
benefits by City employees. .
PURPOSE: This agenda item is needed for the Commission to authorize pension plan
provisions that allow City employees to purchase pension plan benefits.
CONSIDERATIONS:
Buy Back and Buy In Provisions.
The recommended amendments attempted to address the issue of buy back and buy in
provision common to most pension plans, but silent in the City's plan documents.
Buy Back Provisions. Section 12 of the proposed pension resolution allows employees
who were not employees at the time the Floor Off-set defined benefit plan was adopted
by the City on October 1, 1997 to purchase years of prior governmental service in other
governmental organizations for which they did receive a benefit at the full actuarial basis,
including payment of all employee and employer contributions, interest assumptions
(9%), and past service liability costs. The intent of this recommendation is to allow
employees to voluntarily purchase pension benefits for years in which they were not able
to vest their previous governmental employment. This is common in governmental plans.
Buy In Provisions. Section 4 of the proposed pension plan resolution is intended to cure
a unique situation involving the City Manager and Police Chief who were stranded in the
system due to unique circumstances. This proposal created a dying class situation, that is
,
. ,.
012703 REGULAR H 5 PENSION PLAN
Page 2 of 5
a policy directed to cure a situation that when cured will go away. The members of the
dying class of employees are the City Manager and the Police Chief.
This unique situation arose from the following conditions.
1. When the City Manager and the Police Chief were recruited to the City the City did
not have a defined benefit plan. The City had a 401(a) money purchase defined
contribution plan that was limited to a 3% per year contribution from the City.
The City Manager desired to contribute more than 3% per year to a 401(a) money
purchase type plan due to the benefits offered by this type plan and elected to join the
International City Management 401(a) money purchase defined contribution plan.
The City provided the City Manager with the sum of 3% which the City Manager
could contribute to the I.C.M.A. Plan.
The City Manager chose the I.C.M.A. Plan because it allowed up to 20% of his
income to be contributed to the plan rather than being limited to the 3% of the City
plan. As planned, the City Manager chose to defer salary in order to invest
substantially more than 3% of salary to the I.C.M.A. Plan.
2. On October 1, 1997 the City Manager, in response to the Commission's directive,
prepared a new pension plan for City employees. The Floor Offset Plan was unique
in its design and provided for an efficient transition from a combined contribution
plan to a defined benefit plan. The attorney preparing the plan documents for the
Floor Offset Plan was asked to provide a means for the City Manager and Police
Chief to be able to buy into the plan at some future date.
This presented an interesting dilemma. The pension documents included all
employees in the plan. However, there was a Florida Law preventing employees
from being in two plans at one time, (i.e. 'anti-double dipping law"). As such, the
City Manager and Police Chief became non-contributing members of the plan. The
City Manager and Police Chief were included until su.ch time anticipated new Federal
Law removing these restrictions on multiple plan memberships would be enacted,
which was in 2001. The purpose of the new Federal law was to encourage savings
and diminish the Federal Governments role in assisting a growing retirement
population.
On October 1, 2000 the City Commission agreed to honor a referendum of City
employees to implement a full defined benefits pension plan. The same State Law
prevented the City Manager and Police Chief from benefiting under the plan.
On June 7, 2001 the Federal E.G.T.R.R.A., Economic Growth and Tax Relief
Reconciliation Act of 2001, was signed into law. As anticipated the law removed
barriers to private sector and Federal employees being involved in multiple plans as a
012703 REGULAR H 5 PENSION PLAN
Page 3 of5
measure of encouraging savings for retirement and reducing the Federal
Government's burden in providing for a growing retirement population.
On October 1,2001 the State law was changed to be consistent with the Federal Law,
removing the limitation on participation in multiple retirement plans.
The City's pension attorney and pension actuary were instructed to develop the
methodology for allowing the City Manager and Police Chief to be changed from a
non-contributing membership status to full membership status, and a methodology for
allowing employees with past governmental employment for which they received no
benefit to purchase benefits for those years in the City plan.
As explained previously, these two methods are provided for in the pension resolution
and are recommended as follows:
a) The City Manager and Police Chiefbe able to purchase years of service on
the same basis that all other employees were brought into the plan on
October 1, 1997 and October 1, 2000, but which was denied to them due to
a unique set of circumstances.
b) All employees be able to purchase benefits for prior years of governmental
service outside the City of Winter Springs for which they received no
benefit on a full actuarial basis.
,
. .
012703 REGULAR H 5 PENSION PLAN
Page 4 of 5
PERTINENT QUESTIONS
Question: . Why did the City Manger and Police Chief opt out of the City's 401(a) money
purchase defined contribution plan that was in effect when they joined the City?
Answer: The City's plan was very limited and one of the causes of excessive employee
turnover. The International City Management Association's 401(a) money purchase plan was
fully portable throughout the United States but most importantly allowed the City Manager and
Police Chief to invest much higher levels of their compensation in the 401(a) money purchase
defined contribution plan.
Question: Why didn't the City Manager and Police Chief just invest in both plans?
Answer: A State Law would not allow a governmental employee in Florida to be a member of
two plans.
Ouestion: When the City adopted the Floor Offset Plan on October 1, 1997 why didn't the City
Manager and Police Chief get out of the I.C.M.A. plan and join the City plan?
Answer: The new Floor Offset Defined Benefit Plan rolled employee contributions previously
paid in the old 401(a) money purchase plan into the new plan. Since the City Manager and
Police Chiefs 401(a) money purchase defined contribution plan contributions were paid into the
I.C.M.A. plan rather than the City 401(a) money purchase defined contribution plan, there was
no lawful way to roll these funds in the new Floor Offset Plan.
Additionally, since the City Manager was paying more money into the I.C.M.A. plan than the
City plan would allow and state law would not allow him to be in both plans at the same time.
Therefore, he had little choice but to remain in the I.C.M.A. plan until the law changed.
Question: Is the City being asked to make the City Manager and Police Chief financially whole
due to declining investment in their individual plans associated with the decline of the Stock
Market?
Answer: It is unfortunate this erroneous position was advanced in the December 9, 2002
Commission meeting. As explained before, the only reason the City Manager and Police Chief
were not included in the City's defined benefit plan was due to legal restrictions that were
removed on October 1,2001.
Question: If the City Manager and Police Chief had a choice to enter the defined benefit plan
and chose not to, why should they be allowed to join now?
Answer: As we explained, the City Manager and Police Chief did not have an opportunity to be
full members of the City's defined benefit plan due to Florida Law. That law has now changed
making it possible.
Question: Does a defined benefit plan shift the liability for funding shortfalls from employees
to the employers?
"
012703 REGULAR H 5 PENSION PLAN
Page 5 of 5
Answer: As far as the City of Winter Springs is concerned, this will not be the case if the City
Commission follows the City Manager and Pension Board of Trustees' recommendations
limiting the City's contribution to 8% of salary and having any shortfalls funded by increased
employee contributions.
Question: Will adding the City Manager and Police Chief to the pension plan increase the
pension plan past service liability?
Answer: Every time a new employee is added to the City's employment it increases the past
service liability in absolute number of dollars. However, it should not increase the proportional
past service liability since the new employee will be making contributions like all other
employees which are designed in the plan to keep the plan financially sound. Therefore, in the
case of the City Manager and Police Chief the absolute amount of the past service liability will
go up. However, proportionately it win not increase the burden of the past service liability
beyond that of any other new employee.
Question: Will inclusion of the City Manager and Police Chief in the City pension plan reduce
the financial soundness of the plan or cause the contribution rate to increase?
Answer: No, as shown in Tables 1 and 2 the inclusion of the City Manager and Police Chief
will have little impact on the soundness of the plan.
Additionally, if increases in employee contributions are required to overcome declining earnings
from the recent decline in the Stock Market, the City Manager and Police Chief will be required
to pay the same increases as any other employee.
FUNDING:
Funding for these additional provisions to the pension plan would be as described herein.
RECOMMENDATIONS:
It is recommended that the City Commission approve resolution Number 2002-39 and the City's
Pension Plan Documents providing employees the ability to purchase pension plan benefits.
ATTACHMENTS:
Attachment "A"
Attachment "B"
COMMISSION ACTION:
,
.
CITY OF WINTER SPRINGS
MINUTES
CITY COMMISSION
REGULAR MEETING - JANUARY 27, 2003
PAGE 190F23
REGULAR
32. H-l. Office Of The City Manager
Requesting The City Commission To Reconsider A Decision Made On December 9,
2002 Related To Regular Agenda Item "C" Amending The Benchmark Earnings
Rate For Employee Contributions In The City Pension Plan From The Thirty (30)
Year Treasury To The Twenty (20) Year Treasury.
As stated earlier in this Meeting, this Agenda Item was pulled from this evening's
Agenda as this Agenda Item "Will be discussed at our next Regular Meeting."
REGULAR
33. H-2. Office Of The City Manager
Requesting The City Commission Receive Information Regarding The 30 Year
Benefit Period In The Proposed Pension Resolution.
Also as stated earlier in the Meeting, this Agenda Item was pulled from this evening's
Agenda as this Agenda Item "Will be discussed at our next Regular Meeting."
REGULAR
34. H-3. Office Of The City Manager
Requesting The City Commission Receive Information Regarding The Cash-Out
Provisions Of The Recommended Pension Plan Resolution And Plan Document.
As stated earlier in this Meeting, this Agenda Item was also pulled from this evening's
Agenda as this Agenda Item "Will be discussed at our next Regular Meeting."
ADD-ON
REGULAR
35. H-4. Office Of The City Manager
Requesting The City Commission To Receive An Updated Report On The Financial
Status Of The City's Pension Plan And To Provide Any Directive It Deems
Appropriate.
As stated earlier in this Meeting, this Agenda Item was pulled from this evening's
Agenda as this Agenda Item "Will be discussed at our next Regular Meeting."
,.
CITY OF WINTER SPRINGS
MINUTES
CITY COMMISSION
REGULAR MEETING - JANUARY 27, 2003
PAGE 20 OF 23
ADD-ON
REGULAR
36. H-5. Office Of The City Manager
Requesting The City Commission To Approve Section 4 Of The Proposed Rewrite
Of The City's Pension Plan Providing For The Purchase Of Employee Benefits By
City Employees.
Again, as stated earlier in the Meeting, this Agenda Item was pulled from this evening's
Agenda as this Agenda Item "Will be discussed at our next Regular Meeting."
.:..:. AGENDA NOTE: THE FOLLOWING REPORTS WERE DISCUSSED IN
THE ORDER AS DOCUMENTED. .:. .:.
REPORTS
REPORTS
37. A. City Attorney - Anthony A. Garganese, Esquire
No Report.
REPORTS
38. B. City Manager - Ronald W. McLemore
No Report.
REPORTS
39. C. City Clerk - Andrea Lorenzo-Luaces
City Clerk Andrea Lorenzo-Luaces brought up that the City Commission had recently
agreed to have new photographs taken. With discussion, the Commission agreed to meet
at City Hall on Monday, February 3,2003 at 5:45 p.m. for a photo session. Mayor Bush
added, "You [Andrea Lorenzo-Luaces] will remind everybody a week ahead of time."
Secondly, City Clerk Lorenzo-Luaces mentioned that problems existed at two (2) City
precincts in the November 2002 Election, and asked if the City Commission desired to
have anything done. With discussion, Mayor Bush stated, "Why don't we ask the - Clerk
to check with the Supervisor of Elections, and see if she has made any plans to change
precincts in the future - do a little bit of inquiry, and let it go at that, and see what she
comes back with."
DECEMBER 9, 2002
COMMISSION AGENDA
REGULAR AGENDA ITEM "C"
(without attachments)
and
DECEMBER 9,2002
COMMISSION MEETING MINUTES
,..- ,
COMMISSION AGENDA
ITEM C
ICONSENT
INFORMATIONAL
PUBLIC HEARING
REGULAR X
./
Decem her 9,2002
Meeting
MGR (l./ /DEPT. ".c1~
Anthori7.ation
( )
REQUEST: The Pension Board of Trustees is Requesting the City Commission Approve
Resolution 2002-39 Merging the Money Purcha'se Plan into the Defined Benefit Plan and
Amending the Defined Benefit Plan.
PURPOSE: To Approve Resolution 2002-39 Amending the City of Winter Springs
Retirement Plan.
CONSIDERATIONS:
. Prior to 10/1/2000, the employees participated in both a defined contribution and a defined
benefit plan.
. During 2000, the employees voted to merge the defined contribution plan into the defined
benefit plan and increase their contribution from 2% to 3% effective 10/1/2000.
. Attached are the documents that reflect this change as well as other minor revisions as
detailed in the Summary of Retirement Plan Changes.
RECOMMENDATION:
Approve Resolution 2002-39 amending the City of Winter Springs Retirement Plan.
ATTACHMENTS:
. Summary of Retirement Plan Changes
. Resolution 2002-39
. Defined Benefit Plan and Trust for Employees of the City of Winter Springs
. Pension Board of Trustee's Draft Meeting Minutes 11/27/02
(~ . Actuarial Impact Statement dated 7/11/00
. Actuarial Impact Statement dated 2/28/00
()
COMMISSION ACTION:
CITY OF WINTER SPRINGS
MINUTES
CITY COMMISSION
REGULAR MEETING - DECEMBER 9, 2002
PAGE 170F29
The Meeting reconvened at 9:00 p.m.
REVISED
REGULAR
B. Community Development Department
Presents To The City Commission, The Preliminary And Final Engineering Site Plan
For The State Road 434 Retail Center Located On The West Side Of The Stone Gable
Mixed Use Community And The South Side Of State Road 434.
(This Agenda Item Will Not Be Discussed At This Meeting, But Will Be Discussed At
A Special Meeting To Be Held On Monday, December 16, 2002.)
As mentioned earlier in the Meeting, this Agenda Item will be discussed on Monday,
December 16,2002 at 6:30 p.m.
REGULAR
C. Board Of Trustees (Pension Board)
Requesting The City Commission Approve Resolution 2002-39 Merging The Money
Purchase Plan Into The Defined Benefit Plan And Amending The Defined Benefit
Plan.
Ms. Louise Frangoul, Finance Department Director introduced this Agenda Item, and the
City's Consultant Mr. Donald Chapman.
Mr. Donald D. Chapman, E.A., Retirement Plan Specialists, Inc., Post Office Box
622857, Oviedo, Florida: addressed the City Commission and reviewed information
related to this Agenda Item.
With discussion, Commissioner Blake suggested, "I would like to see a twenty (20) year
rate on that within the Plan document, that would probably be fairly easy to fix prior to
adoption."
Further discussion ensued on the "Lump sum payment issue - the $3,500.00 cap on that."
Mr. Chapman stated, "What this is is if somebody should terminate and have a small
vested benefit..." Commissioner Blake added, "These would be with contributions made
after October 1,2000, not the amounts rolled in." Mr. Chapman stated, "Let's talk about
just the present value of benefit - somebody is entitled to. You have a benefit that may
be twenty dollars ($20.00) a month. Say it is worth, present value when we do our
actuarial calculations, that benefit is worth $2,000.00. Okay. What we say is that person
can take that as a lump sum, the full $2,000.00..." Commissioner Blake said, ".. .At the
option of the beneficiary..." Mr. Chapman added, ".. .At the option of - right."
Commissioner Blake stated, "They are not required to take it out." Mr. Chapman
continued, "Yes, it is a minimum sum, everyone who has a lump sum less than
$3,500.00, they are automatically paid a..." Commissioner Blake said, ".. . Cashed
CITY OF WINTER SPRINGS
MINUTES
CITY COMMISSION
REGULAR MEETING - DECEMBER 9, 2002
PAGE 18 OF 29
out. . ." Mr. Chapman said, "A lump sum, you can cash them out - the purpose of that is -
you don't want to keep those records for all those years."
Further, Mr. Chapman then pointed out, "If somebody were over $3,500.00, then their
benefit is vested and they receive it in the form of a monthly benefit." Commissioner
Blake then stated, "If somebody leaves, their separation of service, and they were here
prior to October 1 st 2001, and including the balances prior to the plan date, the value of
those dollars plus the value that has accrued and that they are vested in after the Plan date
equals a present value of $4,500.00 - so it doesn't automatically cash out." Mr.
Chapman agreed and said, "It doesn't automatically cash out." Commissioner Blake then
commented that "They exercised their right to take out their pre-2000 cash contributions
that they have made, they take that out and suddenly now the present value of the
remaining benefit is only $2,000.00. Is it automatically cashed out at that point?" Mr.
Chapman responded, "I could see that being read that it could be, potentially if they..."
Commissioner Blake said, "...I don't want cans - it is either we do or we don't." Mr.
Chapman clarified, "Right now it would not be cashed out, I guess it would be held there,
because the full benefit was greater than..." Commissioner Blake then inquired, ".. . And
what is the window of time that they are able to cash out that portion that was rolled over
prior to 2000?" Mr. Chapman stated, "They make the election at the time they terminate
and they will be given the forms, they make the choices..." Commissioner Blake then
asked, "...Is it a one time election?" Mr. Chapman stated, "Usually it is, yes, at that
time." Commissioner Blake then said, "So, at that time, they would give up any current
cash rights to - those monies..." Mr. Chapman clarified, "It would be paid out in the
form of a benefit when they reach normal retirement age. They have the option at the
time they decide to terminate, and take - at that point, whether they want to take their
money or have it paid out later."
Commissioner Blake then stated, "We need to make sure this document states that and
we need to correct it if that is the case to be certain that if somebody does take that
election to take out their pre-2000 pre-document contributions and then that leaves us a
balance less than the $3,500.00 - that it is an automatic cash-out at that time also.
Because if we don't do that we leave it in there and how I read it when I went through
here, it is not required at that point in time - it is going to leave us potentially with some
of these small balances out there that we really don't want to spend the time and money
trying to administer over thirty (30) years, if that is what it is." Mr. Chapman stated,
"And that is something - we would need to take up with the Attorneys."
Discussion.
Commissioner Blake inquired ofMr. Chapman, "On the thirty (30) year issue, thirty (30)
year cap - if somebody works here for thirty-five (35) years and twenty (20) of those
years were at the two percent (2%) level prior to the date of the plan, and fifteen (15)
years were afterwards, which thirty (30) years count for a three percent (3%), versus two
percent (2%)."
.
CITY OF WINTER SPRINGS
MINUTES
CITY COMMISSION
REGULAR MEETING - DECEMBER 9, 2002
PAGE 190F29
Further, Commissioner Blake asked, "Is it your first thirty (30) years?" Mr. Chapman
responded, "The first thirty (30) years." Commissioner Blake then said, "And that is
stated clearly in here, in the document? I do not see it, and I would like to have a clear
reference of that." Additionally, Commissioner Blake said, "I would hope that we would
also at some point in time have a conversation about the status of the Plan, I understand
the Pension Board [Board of Trustees] - it goes before them - but I am specifically
concerned about the formula that we are currently using and the under funded status of
the Plan." Commissioner Blake added, "I think we need to have a Meeting that might go
over the current status, where we can look at potential funding requirements that we
might have going forward to bring that plan back into line." Mr. Chapman stated, "And
that will be forthcoming, within the next month."
Tape 3/Side A
"I WOULD LIKE TO MAKE A MOTION THAT WE APPROVE ITEM 'C.'"
MOTION BY COMMISSIONER MARTINEZ. MAYOR BUSH CLARIFIED THE
MOTION AS "MOTION TO APPROVE RESOLUTION 2002-39 AMENDING
THE CITY OF WINTER SPRINGS' RETIREMENT PLAN." SECONDED BY
COMMISSIONER McGINNIS. DISCUSSION.
COMMISSIONER BLAKE INQUIRED OF MANAGER McLEMORE, "IF THE
PLAN WERE TO BE AMENDED OR CHANGED PRIOR TO ADOPTION AS I
HAVE REQUESTED THAT IT BE AMENDED, WHERE YOU WOULD BE
REQUIRED TO PAY FOR THE FULL - PRESENT VALUE OF THE BENEFITS
THAT WOULD BE VESTED TO YOU, WHAT WOULD THE DOLLAR
AMOUNT BE REQUIRED FOR YOU TO PAY IN." DISCUSSION ENSUED ON
WHETHER THE PLAN SHOULD BE ADOPTED WITHOUT KNOWING THE
DOLLAR FIGURE BEING DISCUSSED.
COMMISSIONER BLAKE ADDED, "THERE ARE SEVERAL PARTS IN HERE
THAT NEED TO BE AMENDED, TO ADOPT THE PLAN AS IT IS WRITTEN
WOULD BE A MISTAKE AND WOULD COST THE CITY BIG DOLLARS
POTENTIALLY. WAIT TWO (2) MORE WEEKS, OR ONE MORE MONTH,
WHATEVER IT IS, COME BACK WITH THE INFORMATION AND COME
BACK WITH THE REVISIONS THAT MAKE THE PLAN WHAT WE NEED IT
TO BE."
"MY AMENDMENT TO IT WOULD BE TO POSTPONE THE DECISION
UNTIL JANUARY." AMENDMENT TO THE MOTION BY COMMISSIONER
MILLER. MAYOR BUSH POINTED OUT THAT "THE MOTION IS TO
POSTPONE THIS TO THE FIRST MEETING IN JANUARY." SECONDED BY
COMMISSIONER MARTINEZ. DISCUSSION.
CITY OF WINTER SPRINGS
MINUTES
CITY COMMISSION
REGULAR MEETING - DECEMBER 9, 2002
PAGE 20 OF 29
VOTE:
COMMISSIONER MILLER: AYE
COMMISSIONER BLAKE: AYE
COMMISSIONER MARTINEZ: AYE
COMMISSIONER McGINNIS: AYE
COMMISSIONER McLEOD: AYE
MOTION CARRIED.
REGULAR
D. Parks And Recreation Department
Requests That The City Commission Considers And Rejects The Winter Springs
Little League Proposal Regarding Concession Operations At Central Winds Park
And Authorize Staff To Go To Private Sector Again With A R.F.P.
As noted under Agenda Changes earlier in the Meeting, Mayor Bush stated that "The
Little League called today and indicated that - no representatives could be here tonight
and therefore asked this be postponed, so it will be on the January" Meeting Agenda.
REGULAR
E. Community Development Department
Recommends Approval Of A Request For A Variance By M.A. Garcia From
Sections 9-147., 9-157., 9-221., And 9-223. Of The City Code Of Ordinances.
Mr. John Baker, AICP, Current Planning Coordinator, Community Development
Department presented his introductory comments.
Mr. John Sikes, Civil Engineer, Blount Sikes & Associates, 3032 Mercy Drive, Orlando,
Florida: addressed the Commission.
Discussion.
"MOTION TO APPROVE PROVIDING THAT BEFORE APPROVAL AND
FINAL ENGINEERING THOSE NEIGHBORS IN OAK FOREST DO GIVE
THEIR APPROVAL." MOTION BY COMMISSIONER MARTINEZ.
SECONDED BY COMMISSIONER MILLER. DISCUSSION.
VOTE:
COMMISSIONER McGINNIS: AYE
COMMISSIONER BLAKE: AYE
COMMISSIONER MARTINEZ: AYE
COMMISSIONER McLEOD: AYE
COMMISSIONER MILLER: AYE
MOTION CARRIED.
11/04/2003 10:42 FAX 4076795655
AIR-PAK
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t. j
Air-Pak
PRODUCTS & SERVICES, INC. '
F~K C()VER SHEET
ll- Lfl ..03
Date:
To:
Attn:
1l1'Ld~
~~ VV\ L&d
~O/- 3~J-4-lS~
.
From:
Fax no.:
No. Of pages to follow, including cover sheet: ____
Our Fax Number: 407-679-5655
Notes:
.-,-
A HARD COPY OF THIS FAX WILL BE MAILED: YES J:J NCD c::::J
If the reader ol/his message is not the intended recipient or the employee. ar the agent resPQruible for deli\!ering rhis
com17ulI'Iicariol' ro the intended reciplenr, you are hereby notified that any distriburiQn. use or copying of rhis
communicarioll is prohibited. 1/ you have reuivcd this fax in error. please notify us immediately by relephone or
(407) 678-1847 and rerum tM o..;gillal message to lIS at the below address. ThankYlJu.
WebSite: http://III.ww.air-pakpsLcom
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E-mail: info@air.pakl.si.com
I
I
I
Fax Cover Shoo~ Ver 1097
2976 Forsyth Rd.
Winter Park, FL 32792
(407) 678-1847
11/04/2003 10:43 FAX 4076795655
AIR-PAK
@002
L. "::: ..., ·
Air-Pak
PRODUCTS & SERVICES, INC,
MEMORANDUM
To:
Mayor and Commission .........1 J
Commissioner David MCLeo~
November 10,2003 Regular Agenda Item 501- Pension Pian
,
October 31, 2003
From:
Subject
Date:
I am sorry that I am unable to attend the meeting.
However, I wanted to advise you of my desire to approve the pension documents as
presented in Regular Agenda Item 501. '
When this matter was before us on December 9, 2002 I opposed the adoption of the
documents due to my concerns with the provision that allowed the City Manager and
Police Chief to lbuy into the defined benefit plan.
I
My concern wa:.~ that they had an oppoI1unity tojoin the defined benefit plan when it was
started and that the City would be required to fund their contributions.
Since that time :r have had the opportunity to review this matter at length with the City
Manager. Based upon my review, I have come to realize that the City Manager :md
Police Chief did! not have the opportunity to join the defined benefit plan due tcd~gal
problems that have since been resolved. I have also come to realize that the City
Manager and P(Jlice Chiefwill begin paying the eleven percent contribution required of
all employees from the eleven percent that they are cWTently paying to the I.e.M.A. plan,
and that they will be required to fund their past service on the same basis as all other
employees, thus. creating no new contribution requirements on the City.
I
,
I have been advised that the City's Pension Attorney will be available at tl~e Commission
meeting to verify the legal problems that kept the City Manager and Polic~ Chief from
joining the defined benefit plan when it was started. The City's actuaries will be
available to verify the amount of money required to fund their past ServiCE;.
I
2976 FORSYTH RD. . WINTER PARK. FLORIDA 32792 . (407) 678-1847 . FAX (407) 679-5655
htto :/lwww.air-oaIcDsl.com
. .
<. ..
ADOPTED 11/10/03
RESOLUTION NO. 2003-44
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
WINTER SPRINGS, FLORIDA, MERGING THE MONEY PURCHASE
PENSION PLAN AND TRUST FOR EMPLOYEES OF THE CITY OF
WINTER SPRINGS INTO THE DEFINED BENEFIT PLAN AND TRUST
FOR EMPLOYEES OF THE CITY OF WINTER SPRINGS; AMENDING
THE WITNESSETH CLAUSE TO PROVIDE THAT THE RESTATED
DEFINED BENEFIT PLAN IS EFFECTIVE OCTOBER 1, 1997;
AMENDING ARTICLE I OF THE DEFINED BENEFIT PLAN TO
CLARIFY THE DEFINITION OF "EMPLOYEE"; AMENDING ARTICLE
n OF THE 'DEFINED BENEFIT PLAN TO DEFINE EMPLOYEES
EXCLUDED FROM THE PLAN AND TO PROVIDE FOR THE
INCLUSION OF EMPLOYEES WITH NON-CONTRIBUTING YEARS OF,
SERVICE UNDER CERTAIN CmCUMSTANCES; AMENDING
ARTICLE In OF THE DEFINED BENEFIT PLAN TO PROVIDE FOR
CITY CONTRIBUTIONS IN AN AMOUNT NECESSARY TO FUND THE
PLAN ON A SOUND ACTUARIAL BASIS, TO CLARIFY THE
LIMITATION ON ANNUAL BENEFITS, TO. PROVIDE FOR USE OF
MORTALITY TABLES TO DETERMINE ACTUARIAL EQUIVALENTS,
TO CLARIFY THE MAXIMUM PERMISSIBLE AMOUNT OF ANNUAL
ADDITIONS, TO PROVIDE FOR A DEFINITION OF "APPLICABLE
MORTALITY TABLE", AND TO ELIMINATE SECTION 3.07;
AMENDING ARTICLE IV OF THE DEFINED BENEFIT PLAN TO
PROVIDE FOR A THREE PERCENT CONTRIBUTION BY
PARTICIPANTS, TO PROVIDE FOR DIRECT TRANSFER OF
ELIGIBLE ROLLOVER DISTRIBUTIONS, TO PROVIDE FOR THE
"PICK-UP" OF PARTICIPANT CONTRIBUTIONS BY THE
EMPLOYER, TO PROVIDE FOR THE TRANSFER OF THE
PARTICIPANT ACCOUNT BALANCE FROM THE MONEY PURCHASE
PENSION PLAN TO THE DEFINED BENEFIT PLAN AND TRUST, AND
TO PROVIDE FOR THE DISTRIBUTION OF SUCH ACCOUNT
BALANCE UPON NORMAL RETIREMENT; AMENDING ARTICLE V
OF THE DEFINED BENEFIT PLAN TO PROVIDE A THREE PERCENT
BENEFIT MULTIPLIER FOR SERVICE AFTER OCTOBER 1, 2000,
REVISING PROVISIONS RELATED TO ACCRUAL YEAR OF'
SERVICE, AND DELETING THE FLOOR-OFFSET ARRANGEMENT;
AMENDING ARTICLE VI OF THE DEFINED BENEFIT PLAN TO
MODIFY THE AMOUNT PAYABLE TO A PARTICIPANT IN A LUMP
SUM UPON EARLY RETIREMENT; AMENDING ARTICLE VIn OF
THE DEFINED BENEFIT PLAN TO MODIFY THE AMOUNT OF
DEFERRED VESTED PENSION PAYABLE TO A PARTICIPANT IN A
LlJl"l'tp SUM, CREATiNG A NEW SECTiON 8.05{ti) TO PROVIDE FOR
ONE HUNDRED PERCENT VESTING OF REQUIRED PARTICIPANT
CONTRIBUTIONS, AND MAKING TECHNICAL AMENDMENTS;
AMENDING ARTICLE IX OF THE DEFINED BENEFIT PLAN TO
MODIFY THE AMOUNT PAYABLE IN A LUMP SUM TO A
PARTICIPANT'S SURVIVOR; AMENDING ARTICLE X OF THE
DEFINED BENEFIT PLAN TO MODIFY THE AMOUNT OF
NONFORFEITABLE 'ACCRUED BENEFIT ABOVE WHICH A
PARTICIPANT MUST CONSENT IN WRITING FOR, ANY
DISTRIBUTION, AND MODIFYING THE AMOUNT OF ACCRUED
BENEFIT, NORMAL RETIREMENT BENEFIT, AND DEATH BENEFIT
PAYABLE, TO A PARTICIPANT IN A LUMP SUM; AMENDING
ARTICLE XI OF THE DEFINED BENEFIT PLAN TO PERMIT THE
TRUSTEES TO ACCEPT TRANSFER OF ASSETS IN THE MONEY
PURCHASE PENSION PLAN; PROVIDING FOR CONFLICTS;
PROVII>.ING FOR SEVERABILITY; PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City Commission approved certain changes to the, City's retirement
program for employees in July 2000 and September 2001; and
WHEREAS, the changes to the retirement program approved by the City Commission
require merging the Money Purchase Pension Plan and Trust for Employees of the City of
Winter Springs Plan and Trust with the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs, and amending provisions of the Defined Benefit PlEin and Trust for
Employees of the City of Winter Springs;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF WINTER SPRINGS, FLORIDA:
Section 1.
A. That the Money Purchase Pension Plan and Trust for Employees of the City of Winter
Springs be merged into the Defined Benefit Plan and Trust for the Employees of the City of
Winter Springs, effective October 1, 2000.
2
."
B. That the Money Purchase Plan and Trust for Employees of the City of Winter Springs
cease to exist as of October 1, 2000.
C. That upon the merger of the two plans, all participant accounts and all other assets of
the Money. Purchase Plan and Trust for Employees of the City of Winter Springs, together with
earnings and interest thereon, be transferred' to and, become an 'integral part of the Defined
Benefit Plan and Trust for Employees' of the, City of Winter Springs; provided that said
participant ,accounts shall be available for distribution as permitted by the Defined Benefit Plan
and Trust for Employees of the City, of Winter Springs.
Section 2.
That the, Witnesseth Clause of the Defined Benefit Plan and Trust for Employees of the
City of Winter, Springs be amended as follows:
The City of Winter Springs establishes continues, within this Trust Agreement, a
Plan for the administration and distribution of contributions made by the Employer f-or
the purpose of providing retirement benefits for eligible Employees. This Plan is an
arnended,plan, in restated form, the original plan being effective October 1. 1997 and this
restated Plan: is a1sQ' effective October 1. 1997 (except ,to the extent othelWise provided
herein). The provisions 'of this Plan apply solely to an Employee whose employment
with the, Employer terminates on or after the Effective Date of the Plan. If an Employee's
emPloyment with the Employer terminates prior to the Effective Date, that Employee is
not entitled to any benefit under the Plan.
Section 3.
That Section J .06 of the Defined Benefit ,Plan and Trust for Employees of ,the City of
Winter Springs be,amended as follows:
1.06 "Employee" means any. employee of the Employer. Individuals who
perform services for the Employer in any capacity 'other than as an Employee, determined
pursuant to the books' and records of the Employer (e.g.. independent contractors or
leased ,employees within the meaning 'of Code S' 414(n), even if such individuals are
reclassified as Employees by any'govemmental agency'(other than the Emplover) or
iudicial decision). are riot Employees' for pUlposes of the ,Plan, and thus. are not eligible
to participate hi the Plan.
3
Section 4.
That Section 2.01 of the Defined Benefi,t Plan and Tru'st for Employees of the City of
Winter Springs be amended as follows:
'2.01 Eligibility. Each Employee-(other than an Excluded Employee) becomes
a Participant in the Plan' on the first day' of the month, (if' employed, on that date)
irrimediate1y following'the date 6 months after his Employment Commencement Date.
"Employment Commencement Date" means, -the date 'on which the Employee first
perfot'ms 'an Hour of Service for the,Employer.
(A) 'Excluded, Employee I
'. .(1) An Employee is an Excluded, Employee if his customary weekly
employment with the Employer.:is less than 29',hours. An Employee is an
Excluded Employee if he is actiyely participating (and "benefiting" within the
meaning of Treas. Reg. ~ 1.41O(b)-3) in another qualified plan maintained by the
Employer other than ,the Money ,Purchase Pension Plan and Trust for Employees
of the City of Winter Springs. Florida (hereinafter referred to as the "Money
Purchase Plan"'). ' '
(2) If a Participant has not incurred ,a Separation' from Service, but becomes an
Excluded Employee. then during the period such a Participant is an Excluded
Employee. the Participant will.not'accrue a benefit under the Plan attributable to
any period during which he is an Excluded Employee. However. during such
period of exclusion~ the ,Participant. without regard to' employment classification.
continues to receive credit for vesting under Article VIII for each included Year
of Service.
.(3) If an Excluded Employee who is not a Participant becomes eligible to
participate in the Plan by reason of a change in emp10vrnent classification. he will
participate in the Plan immediately ifhe has satisfied'the elilribilityconditions 'of
SectiOn 2.01 and would have been a Participant had he not been an Excluded
Employee during his period of Service. Furthennore. the Plan takes into account
all of the Participant's included Years of Service with the Emv10yer as an
Excluded Employee for purposes of vesting credit under Article VIII.
(B) .' Employees with Non-Contributing Service., Any Employee who completed Years
of Service prior to adoption of Resolution No. 2003-44. but did not make contributions to
, this Trust Fund, or to the .Money Purchase Plan.' shall be credited with Years of Accrual
Service upon payment of the Required Participant Contributions due under this Plan and
, the ,requited participant contributions due under the Money Purchase Plan for such
service.
4
Section 5.
That Section 3.01 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
3.01 Amount.
(A) The Employer alone will make the contributions required to fund the eost of the
benefits proyided by this Plan.' The' Employer intends to make such contributions as are
necessary to fund the Plan on a sound actuarial basis. in accordance with applicable law.
(B) The Employer contributes to this Plan on the condition its contribution is not due
'to a mistake offact. The Tr,ustee, upon written request from the Employer, must return to
the ,Employer the amount of the Employer's contribution made by the Employer by
mistake of fact. The Trustee will not return any portion of the Employer's contribution
under the provisions of this paragraph more than one year after the Employer made the
contribution hy mistake of fact. Furthermore, the Trustee will not increase the' amount of
the employer contribution returnable under this Section 3.01 for any earnings attributable
"to the contribution, but the Trustee will decrease the Employer contribution returnable for
any losses attributable to it.
Section 6. '
That Section 3 .05 of the Defined Benefit. Plan and Trust for Employees of the City of "
Winter Springs be amended as folloWs: '
3.05' Limitation on Annual Benefit. A Participant's Annual Benefit payable at
any time within a Limitation Year, may not exceed the limitations of this Section 3.05,
even if the benefit formula under the Plan would produce a greater Annual Benefit.
**********
(B) Commencement prior to age 62. If a Participant's Annual Benefit commences
'prior to his 'attaining age 62, the Retirement Committee will adjust the $90;000 (or the
larger adjusted dollar amount) limitation of this Section 3.05 to the Actuarial Equivalent
of an Annual Benefit equal to such, doH~ limitation commencing at age ,62. The
Actuarial' Equivalent under the immediately preceding sentence may not be,less than
$75,o.OO:m the event aPaI1jcipant's:Annual :Benefit commences at Or after age 55. In the
event a Participant's' Annual Benefit commences prior to age 55, the Actuarial Equivalent
will equal, the. greater ,of (1) the Actuarial Equivalent ofa $75,QOO Annual, Benefit
comnlencing at ,age S5 or (2) the, Actuarial ,Equivalent of,a$90,000 (or larger,adjusted
dollar amolJIlt) Annual Benefit commencing at age 62. To determine the Actuarial
Equivalent under this paragraph, the Retirement Committee will use an interest rate
5
:
assumption equal to the greater of 5% p~r annum or the rate specified in Section 1.12 and
the Applicable Mortality Table.
(C) Commencement after age 65. If a Participant's Annual Benefit commences after
, 'his attaining age 65, the Retirement Committee will adjust the $90,000 (or larger adjusted
dollar amount) limitation of this Section 3.05 to the Actuarial Equivalent of an Annual
Benefit "equal to .such dollar'limitation commencing at age 65. To determine the
Actuarial Equivalent under this paragraph,' the Retirement Committee will use an interest
rate assumption equal to the lesser of 5% per. annum or the, rate specified in Section 1.12
and the Applicable Mortality Table.
**********
(E) Adjustment for Years of Service/Y ears of Participation Less Than 10. The
ma:xinmm. ,Annual Benefit$90.000 (or such . larger 'adiusted dollar amount) limitation
describ~ in this, Section.l.05 'applies ,to a Participant-who has completed: at least 10
Years of Service with the Employer, foOT purposes of the 100%' flyerage,Compensation
limitation and has completed at.least 10 Yearn of Participati.on in the Plan, [-or purposes of
the dollar limitation. If a Participant has less than 10 Y cars: of Service "t/ith the Employer
at the time benefits commence, the, Retiremc.nt C011Hllitte~ 'Hill multiply his, 100%
average Compensation limitation by a fraotion, the numerator of which is the number of
Years of Servioe (including fractional years) with the Employer and the dooominator of
which is 10. .Ifa Participant has less than 10 Years of,Participatiori in the Plan at the time
his bene,fits commence, the Retirement Committee will multiply, his dollar limitation by a
fraction, the,numetator of which is, the number ,of Years of Particip.ation (including
fractional years) in ,the Plan ,and the denominator of which, is 10. The reductions
des~bed.in this paragraph will not reduce a Participant's maximum .f.,..m.ual Benefitdollar
limitation to less than one-tenth of the maximum Annual Benefitdollar limitation
determined without regard to the reductions.
(F) Alternate Forms of.Payment. If the Trustee pays the Participant's benefit in a
form other than ,an Annual Benefit, the benefit paid may not exceed the Actuarial
Equivalent. ,of the maximum Annual Benefit payable as a straight .life annuity. To
determine the Actuarial Equivalent under this paragraph, the Retirement Committee will
use an interest-rate assumption equal to'the greater of 5% per annum or the rate'specified
in Section 1.12 and the' Applicable Mortality Table.
Section 7.
That Section 3.06 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
,3.06 Definitions - Article III. The definitions in this Section 3.06 apply to the
limitation provisions of Part 2 of Article III. For purposes of Article III, the following
tenns mean:
6
(A) General Definitions.
**********
(4) Annual Addition. Annual Additions are the following amounts allocated
on behalf of a Participant for a Limitation Year, under a defined contribution plan
maintained by the Employer: (i) all Employer contributions; (ii) all forfeitures;
and (iii) all Employee contributions. Except to the extent provided in Treasury
regulations, Annual Additions include excess contributions described in Code
~401(k), excess aggregate contributions d~scribed in Code ~401(m), irrespective
, " ' of whether the plan distributes or forfeits such excess' amounts. Excess deferrals
. under, Code ~402(g) are not Annual Additions unless distributed after the
correction period described in Code ~402(g). Amounts allocated after March 31,
1984; to an individual medical account (as defined in Code ~415(l)(2)) included
as part of a defined benefit plan. mainta4Ied by' the Employer also are Annual
. Additions. Furthermore, Annual Additions include contributionS paid or accrued
after December 31, 1985, for taxable years ending after December 31, 1985,
attributable to ,post-retirement medical benefits allocated to the separate account
of a key'employee'(as defined in Code ~419A(d)(3)) under a welfare 'benefit fund
(Code ~419(e)) maintained by the Employer. For a Limitation Year, the Annual
Additions allocated on behalf .of any Participant, to all defined Contribution plans
maintained by the Employer, may not exceed the Maximum Permissible Amount.
The "Maximum Permissible Amount" is the lesser of (I) $30,000 (or, if greater,
.one fourth of the defined benefit dollar limitation$30.000 amount as adiusted
under Code ~415(b)(1)(A)g), or (II) 25% of the Participant's Compensation for
the Limitation Year. If there is a short Limitation Year because .of a change in
Limitation Year; the Retirement Committee will multiply the $30,000 limitation
(or larger limitation) .on Annual Additions by the following fraction:
Number of months in the short Limitation Year
12-:
(5) Year of Serviee. }.. Plan Year dur..ng which an Employee completes at
least 1,000 Hours of Applicable Mortality Table. The Applicable Mortality Table
means. the mortality table specified in Code & 417(e)(3) and set f.orth in Revenue
Ruling' 95-:6 (or any applicable 'subsequent pronouncement issued by Internal
Revenue Service.
Secti.on 8. '
That Section 3.07 of the Defined Benefit Plan and Trust for Employees .of the City of
Winter Springs ,be eliminated.
7
" <>"t~ ".... 0
u'Vv...~v~~ "/. .
That Section 4.01 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
4.01 ,P~eipant Contributions. The Plan docs not permit nOr require Participant
contributions; Required Participant Contributions. ' The Plan did not permit nor require
Participant' Contributions' prior to October 1. 2000. ,Effective October 1. 2000. each
Participant. is required, to contribute :3 % of Compensation to the Plan. which contribution
shall be considered the Required Participant Contribution. The required participant
contribution shall be deducted from' each Participant's Compensation whenever such
Compensation is paid. and remitted to the Trustee. Required participant contributions
shall be considered an Employer "pick-up~' contribution, and shall be designated as
employer contributionsplirsuant, to Section' 414(h). of the Internal. Revenue Code.
contingent upon the contributionS being excluded from the Participant's gross income for.
federal fucome'tax purposes.:. For all other purposes of this Plan. such ,contributions shall
be considered Participarttcolltributions.
Section 10.
That Section 4.02 of the Defined Benefit Plan. and Trust for Employees of the City of
Winter Springs be amended as follows:
4.02 Participant Rollover Contributions. The Plan docs not permit PartiCipant
rollover contributionsDirect Transfers of Eligible Rollover Distributions.
(A) 'General. This section applies to distributions made on or after October 1. 2002.
Notwithstanding any provision of the plan to the contrary that would othelWise limit a
distributee's election under this section. a distributee'may elect. at the time and in the
manner prescribedbv the board. to have any' portion 'of an eligible rollover distribution
paid directly to an eligible retirement plan specified 'by the distribute in a direct rollover.
(B) Definitions.
(1) "Eligible rollover distribution" is any distribution of all or any portion of
the balance to the credit of the distributee. except that an eligible rollover
distribution does not include: any distribution that is one of a series of
substantially equal periodic payments (not less frequently than annually) made for
the life (or life expectancy) of the distribute or the joint lives (or loint life
expectancies). of the distribute and the distributee's designated Beneficiary. or for
a specified period of ten years or more: any distribution to the extent such
distribution'is required ,under section 401(a)(9) of the Code: and the portion' of
any ,distribution that is not includible in gross income, Any portion' of any
,distribution which would be includible in gross income will be an eligible rollover
8
distrlb-ution if the .distribution is made to an individual retirement account
described in section 408(a). to an individual retirement annuity described in
section 408(b) or to a qualified defined contribution plan described in section
401(a) or 403(a) that agrees to separately account for amounts so transferred.
including separate1v accounting, for the portion of such distribution which is not
so'includible.
(2) . "Eligible retirement plan" is an individual retirement account described in
section 408( a). of the Code. an individual' retirement, annuity described in 'Section
408(b) of the Code. an annuity plan'described in section 403(a) of the Code. an
eligible deferred 'compensation ,plan described in' section 457(b) of the Code
which is maintained by an eligible employer described in section 457(e)(1)(A) of
the Code and which agrees to separately account for amounts transferred into such
plan 'from this plan. an annuity contract described in section 403(b) of the Code.
or a qualified trust described' in section 401(a) of the ,Code. that accepts the
distributee's eli~ible ,rollover distribution:., This defInition shall' also apply in the
case of an ,eligible rollover distribution to the surviving spouse., .
(3) "Distributee", includes: an employee or fonner employee; In addition. the
employee's: or former employee's surviving spouse is a distributee with re~ard.to
the interest of the spouse. '
(4) "Direct 'fOllover" is a paymenf by the plan to the eligible retirement plan
specified by the distributee; ,
(C) ~ollovers or Transfers into the Fund. On or after the effective date of Resolution
No. 2003-44. the fund wi:llaccept .member -rollover cash contributions and/or direct cash
rollovers of distributions for the purchase of permissive service credit under the Plan. as
follows:
(1) Direct Roll overs , or Meinber Rollover Contributions from Other Plans.
The Plan will accept either a direct rollover of an eligible rollover distribution or a
member contribution of an eligible rollover distribution from a qualified plan
desCribed in section 403(a) of the: Code. from an annuity contract described in
section 403 (b) of the Code. or from an eligible plan under section ,457(b) of the
Code. which is maintained bya state. political subdivision of a state. or any
agency or instrumentality of a state or political subdivision of a state.
(2) Member Rollover Contributions from 401(a) Plans and }RAs. The Plan
will accept a member rollover contribution of the portion of a distribution from
qualified plan described in section 401(a) of the Code. or from an individual
retirement account or annuity described in section 408( a) or 408(b) of the Code.
that is eligible to be rolled over and would otherwise be includible in the
member's gross income. '
9
~ . . .
Section 11.
That a new Section 4.03 of the Defined Benefit Plan and Trust for Employees of the City
of Winter Springs be created to read as follows:
4.03 Participant Account. Balance Transferred from Money Purchase Pension
Plan. A Participant's 'account balance transferred from the Money-Purchase, Pension Plan
and Trust-for Employees of the City of Winter. Springs pursuant to Resolution No. '2003-
44. shall become an integral part 'of this' Trust Fund: provided that such. account balance.
plus interest at a rate equal to the interest rate 'on 30-year Treasurv'securities as published
in the Internal Revenue Bulletin determined as, of the calendar month preceding'the first
day of the Plan year. and effective October 1. 2003. a rate equal to the U.S. Treasury
Department long-term average rate published on 'the last' day of the calendar', month
preceding.the first-day of the Plan year. or such other rate that may be approved by the
U.s. Treasury'Department to replace the 30-year TreaSury bond rate as a benchmark for
calculating lump sum, payouts from defined benefit plans. shall be part of the Accrued
Benefit payable to a Participant upon normal retirement. except as reduced in accordance
With Section 8.05.
Section 12.
., , That Section 5.02 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
5.02 Amount of Normal Retirement Pension/Accrued Benefit. The Annual
Benefit limitations of Arti.c1e III apply, to the determination of a Participant's normal
retirement pension and Accrued Benefit in the manner prescribed in Section 3.05(H).
, (A) Normal Retirement Pension. ,
(1) Benefit Formula. A Participant's normal retirement pension equals 2% of
the, Participant's Average Compensation multiplied by his Years of Accrual
Service for service prior to October 1.2000. and 3% of the Participant's Average
Compensation multiplied by his Years of Accrual Service for service on and after
October 1.2000. Such pension will be adjusted for any distribution in accordance
with Section 8.05. The maximum nUIt).ber of Years of Accrual Service taken ,into,
account in the. normal retiremept pension is 30. counting,forward from the ,date of
initial participation to include any purchased past service.
(2) Average Compensation. Average Compensation is the average of the
Participant's' Plan Compensation for, the Averaging Period in the Participant's
Compensation History which results in the highest Average Compensation. ' A
Participant's . Compensation History is th.e Participant's entire period, of
10
. . ~,
employment with the Employer. The Averaging Period is 3 consecutive
C9mpensation' periods (or the entire period of employment, if shorter). A
Compensation period is the 12-month period ending on the last day of the Plan,
Year.
(B) Accrued Benefit. Subject to the Annual Benefit limitations of Article III, a
Participant's Accrued Benefit is the normal retirement pension accrued by the Participant
under th.e accrual formula provided in this paragraph (B).
" ,
(1) ",Me~od o( Accrual. As of any date, a Participant's Accrued"Benefit is his
t:lO~al re~rement pensioI:1 calculated as of the determination date, based on the
y ear~ of Accrual Service credited as of such date.
(~) .' Year of Accrual Service: Years of Accrual Service are Years of Service as
deterrpined.UI1der Section. 8~06, jncJuding Y~arsof Service comp1eted,piior to his
participation in the, Plan., Any Employee who ,completed Years of Service prior to . .-.
the-adoption' of Resolution No. 2003-44' but did, not make contributions to this
Trust Fund or to the Money Purchase Pension Plan shall be credited with Years of
Accrual Service upon payment of the Required Participant Contributions, due
under. this Plan and the r.eqUired participant contributions due under the, Money
Purchase Pension Plan for such service. Years of Accrual Service also include
"Years of Qualified Service". Years of Qualified Service means any or all years
of service ,performed by the Participant as an employee, of the Government of the
United States. any State, or political subdivision thereof or any agency or
instrumentality of any of the foregoing. other than the Employer. but only if all of
the following,conditions are satisfied:
(a) , the Participant makes a voluntary contribution to the Plan. in an amount
, necessary to fund the benefit attributable to such Years of Qualified Service (as
determined by the actuary for the Plan. utilizing the actuarial definitions used for
plan :funding purposes) and which does not exceed the amount necessary to fund
the benefit attributable to such Years of Qualified Service:
(b) the 'Participant makes the voluntary contribution described in paragraph
.(a)ahove. in: one lump sum payinent to the Plan prior to receiving credit for such.
Years of Qualified Service:,
. "
(c) the Participant's Accrued Benefit is either 100% Nonforfeitable at the time
he makes. the voluntary contribution described ,in paragraph (a) above or will
become 100% Nonforfeitable illUl}ediately after, receiving credit for'such Years of
Oualified Service~, and ' '
(d) the crediting' of such Years ,of Qualified Service must not caus.e the
Participant to receive a retirement benefit for the same Years of Qualified Service
under more than one retirement plan.
11
t . .'
(3). floor offset arrangement. The Employer also maintains the Money Purchase
P~nsion Plan and Trust for Employo0s of the City of 'V inter Springs, Florida (the "Money
Purehooe Plan") and the Partioipants in this Plan also partioipate in the Money Purchase
Plan. The Retirement Committee ',',ill .:reduce the Participant's f..cerued Benefit in this
Plan by tho Actuarial Equivalent benefit deriyed from the portion of the Partioipant's
vested aCooURt billanoe in the Money Purehase Plan attributable to employer
contributions and required participWlt eontributions made purnuWlt to the tenns of the
Money Purohase Plan (including any distributions and/or direct transfers made from the
6oo0$t balanoe ,of such ,Particip~ prior .t9 the b.enefit oommencement date under this
Plan)." The interest rate used to detennine.thef..ctuarial Equiyalent benofit den'/ed froin
the Money Purchase, PJ~ is the rate ,speeifiecl'in Section 1.12, of this P1an~ /'.. mortality
'assumption will not apply to detOCmine thc,.f..ctUarial Equivalent of distributions and/-or
dirt?cttransf-ets:mooe from the Participant's accou~t balance, in the Money Purchase Plan
nor to dete~ne the .f..etuariaJ Equivalent benefit from the Participant's yested account
balance in the Money Purchoo~ Plan fi;>,r the period prior to the benefit commenoement
~:late ~derthis: Plan.
Section- 13.
That Section 6.01 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
6.01 , Eligibility for Early Retirement Pension. A Participant who has received
credit for at least 10 Years of j\ccrual Service (as defined in Section 8.06)~d has
, attained age:55 may elect an early retirement pension. A Participant who separates from
service after satisfying the service requirement but not the age requirement may elect to
receive an early retirement pension upon satisfying the age requirement. In addition, a
Participant who has completed :25 Years of Accrual Service (as defined in Section 8.06)
may elect an early retirement pension. A Participant's early retirement perision is his
Nonforfeitable Accrued Benefit payable at Normal Retirement Date without actuarial
reduction for early commencement but only if benefits commence on or after the
Participant attains age 55. If an eligible Participant elects to commence his early
retirement pension prior to attaining age 55, such Participant's early retirement pension is
the Actuarial Equivalent of his Nonforfeitable Accrued Benefit payable at age 55.
Section 14.
, ,
That Section 6.02 of the Defined Benefit Plan and Trust for ,Employees of the City of
Winter Springs be amended as follows:
6.02 Payment of Early Retirement Pension.
(ad) If the, present'value of the Participant's early retirement pension does not. exceed
$5;OOG3.500. the Trustee will automatically pay the early retirement pension,in lump
12
, . .-
sum, as soon as administratively practicable after the Participant's Separation from
Service or, if tater, after the Participant satisfies the eligibility requirements for an early
retirement pension.
(bID If the present value of the Participant's early retirement pension exceeds
$~3.500, the Trustee will pay the early retirement pension in the form and as of the
date elected by the Participant. A participant may elect to commence his early retirement
pension as of the first day of any month during the period he is eligible for the early
retirement pension and after he has separated from Service. If the Participant fails to
designate a distribution date, then the, Trustee will commence payment of the early
retirement pension in accordance with Article X.
Section 15.
That Section 8.03 of the Defined'BenefitPlan and Trust for Employees of the City of
Winter Springs be amended asJollows:,
8.03, Payment of Deferred Vested Pension.
(aA) If the present value of the Participant's deferred vested pension does not exceed
$~3.500, the Trustee will automatically pay the deferred vested pension in lump sum,
as soon as administratively practicable, following the Participant's Separation from
Service. In no event may the distribution occur later than the 60th day following the
close of the Plan Year in which the Participant attains Normal Retirement Age.
(bID If the present value of the Participant's deferred vested pension exceeds
$~3.500, the Trustee will pay the deferred vested pension in the form elected by the
Participant.' A Participant may elect to commence his deferred vested pension after the
Participant's Normal Retirement Date. ,If the Participant fails to elect a distribution date,
then the Trustee, will commence payment of the deferred vested pension in accordance
with Article X.
Section 16.
That a new. Section 8.05(B) of the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs be created to read as follows:
8.05 Vesting Schedule.
**********
(B) 100% Vesting of Required Participant Contributions. Each Participant is
immediately 100% vested with respect to his Required Participant Contributions. A
Participant is, entitled to receive a return of his Required Participant Contributions,
13
t . ~ ., .
contributed while a participant under the money pUrchase plan priOf to 'October 1. 2000.
upon termination of employment. together with simple ,interest at a fate' equal to the
interest rate on 30.year Treasury securities as published in the Internal Revenue Bulletin
determined as of the calendar month preceding the first 'day 'of the Plan year. and
effective October 1. 2003. a rate equal to the U.S. Treasury Department long-term
, ,
average rate published on the last day of the calendar month preceding the first day of the
Plan year. or such other rate that may be approved by the U.S. Treasury Department to
replace the 30-year Treasury bond rate as a benchmark for calculating lump sum payouts
from 'defined benefit plans. in ,lieu of any other benefit under the Plan. The amount
received as a distribution by the Participant shall be used 'to reduce the accrued benefit. if
any" at'his' normal retirement date. Required Participant contributions contributed on and
after October 1. 2000 are 100% vested ,and shall be included in, the deferred vested
benefit payable to the Participant upon normal retirement date.
Section 17.
That subsections (B), (C), and '(0) of Section 8.05 of the Defined Benefit Plan and Trust
for Employees of the City of Winter Springs be redesignated as subsections (C), (0), and (E)
respectively, and that the first sentence of redesignated Section 8.05(C) is amended as follows:
8.05(BC) Vesting Schedule. Subject to Section,8.05(A) and Section 8.05(B). a
Participant's nonforfeitable percentage' of his Accrued Benefit equals the percentage in
the following schedule:
Section 18.
That Section 8.08 of the' Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended ~ follows:
8.08 Included Years of Service - Vesting. For purposes of determining "Years
.'of-Service" under Section 8.06, the Plan takes into account all Years ofOualified Service
credited to a Participant pursuant to Section 5.02(B) and all Years of Service an
Employee completes with the Employer except:
'(aA) Any Year of Service completed before a Break in Service, unless the Employee
completes a Year of Service after the Break in Service. This Break in Service rule will
not operate to recredit any Year of Service disregarded under clause (bID.
(bID Any Year of Service completed before a Break in Service' if the number of the
Participant's consecutive Breaks in Service equals of exceeds the 'greater' of. 5 ,or the
14
'\ . ~.
aggregate number of the Years of Service prior to the Break. This Break.in Service rule
applies, only if the Participant is 0% vested in his Accrued Benefit derived from Employer,
c.ontributio;ns', at the time he has a Break in Service. Furthermore, the aggregate number
of Years of Service before a Break in Service does not include any Years of Service not
required to be taken into, account Under this exception by reason of any prior Break in
Service. If the Retirement Committee Retirement,Committee disregards the Participant's
Years of-Service under this exception, the Plan forfeits his pre-Break in Service Accrued
Benefit.
(eg Any Year of Service before the Plan Year in which the Participant attained the '
age of 18. '
Section:l9.
That subsections (B) and (C) of Section 9.01 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
9.01 Preretirement Survivor Annuity - Eligibility. If a married Participant dies
prior, to his annuity starting, date, the Retirement Committee will direct the Trustee to
distribute to the Participant's sUrviving ,spouse a preretirement survivor annuity, unless
the Participant has a valid waiver election (as described in Section 9.02) in effect, or
unless the Participant and his spouse were not married throughout the one year period
'ending on: the date of his death. '
*****,*****
(B) Present Value Not Greater Than $~3.500. If the present value of the
preretirement survivor annuity is not greater than $~3.500, the Trustee will
, automatically make the distribution in a lump sum, in lieu of the preretirement survivor
annuity. The distribution must occur on or before the annuity starting date.
(C) Surviving Spouse Elections. If the present value of the preretirement survivor
annuity exc,eeds $~3.500",the Participant's surviving spouse may elect to have the
Trustee commence payment of the preretirement survivor annuity as of the first day of
any month following the Participant's death, but not later than the applicable mandatory ,
distribution period described in Article X. A surviving spouse also may elect any form of
payment described in Article X, in lieu of the preretirement survivor annuity (other than a
joint and survivor annuity). In the absence of an election by the surviving spouse, the
Retirement Committee; will direct the Trustee to distribute ,the preretir~ent survivor
annuity- 'as soon as administratively practicable following the close of the Plan Year in
which tl1~ latest of the : following events occurs:' (1) the Participant's death; (4) the d.ate the
15
, . ~ ... It
Retirement.Committee receives notification of'or othelWise confirms the Participant's
death; or (3) the date the Participant would have attained Normal RetirementAge.
Section 20.
That subsection (A) of Section 10.01 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
10.01 ,Form' of Benefit. Subject to the requirements of Section :.10.02, the
Retirement Committee will direct the Trustee to pay a Participant his Nonforfeitable
Accrued Benefit in a form permitted under, Section 10.05. Annuity payments will
continue until the last scheduled payment coincident with or immediately preceding the
'date of the Participant's death or, if applicable, the date of his survivor's death.
(A) Consent. A Participant must consent, in writing, to any distribution described in
. , .:, : this Article X if the present value of the Participant's Nonforfeitable Accrued Benefit
exceeds $~3.500. and the distribution commences prior to the Participant's attaining
Normal"Retirement Age. Furthermore, the Participant's spouse :also must .consent, in
writing, to any distribution for which Section 10.02 requires the spouse's consent. For
purposes of the, consent requirements under this Article X, if the present value of the
Pamcipant's Nonforfeitable Accrued Benefit, at the time of any distribution, exceeds
$~3.500, the Retirement Committee will treat' that present value as exceeding,
$~3.500 for purposes of all subsequ'ent Plan distributions to the Participant.
Section 21.
That subsection (B) of'Section 10.02 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
10.02 Qualified'Joint and: Survivor Annuity. '
*. *. * '* * * * .*. * *
(B) Present Value Not Greater Than $~3.500. If the present value of the
Participant's 'Accrued ,Benefit, is . not greater than, $~3.500. the Trustee will
automatically,pay the Participant's pension in a lump sum, in lieu of a: qualified joint and
survivor annuity. The distribution must occur on or before the annuity starting date. The
cow;ent requirements. of this Article X, do not apply to a Participant. subject to thi~
paragraph.
Section 22:
16
.... "'" '"
That subsections (B) and (E) of Section 1 0.03 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
1 0.03 Commencement of Benefits. The Retirement Committee must direct the
Trustee to commence distribution of benefits in accordance with this Section 10.03,
subject to the mandatory distribution requirements of Section 1 0.06.
**********
(B) Distribution to Participant Who Separates from Service After Normal Retirement
Date. The Retirement Committee will direct the Trustee to 'commence distribution to the
Participant:
(1) Present Value ofNonnal Retirement Pension Not Exceeding $~3.500.
In lump sum, as soon as administratively practicable following the Participant's
separation from Service, but not later than the 60th day following the close of the
, Plan Year in which that separation from Service occurs.
(2) Present Value ofNonnal Retirement Pension Exceeds $~3.500. In the
form and at the time elected by the Participant, as permitted WIder this Article X.
The Participant may elect to commence distribution as soon as administratively
practicable following, separation from Service or as of the first day of any
subsequent month.
**********
(E) Death of the Participant. If the P~icipant had commenced distribution prior to
his death, the Retirement .committee will direct the Trustee to make distribution to the
Participant's Beneficiary in accordance with the distribution method in effect at the time
of death. If the deceased Participant had not commenced distribution, the Retirement
Committee will direct the Trustee to distribute the Participant's death benefit in
accordance with paragraph (1) or paragraph (2), whichever applies, subject to the
requirements of Article IX.
(1) Present Value of Death Benefit Does Not Exceed $~3.500. In lump
sum, as soon as administratively practicable following the date on which the
Retirement Committee receives notification of or otherwise confirms the
Participant's death.
(2) Present Value of Death Benefit Exceeds $.s,ooG3.500. In the form and at
the time elected by the Participant or, if applicable by the Beneficiary, as
permitted under this Article X. Unless otherwise elected by the Participant and to
the extent permitted under Section 10.06, a Beneficiary may elect to commence
distribution of the Participant's death benefit as of the first day of any month
following the date the Retirement Committee receives notification of or otherwise
confirms the Participant's death. In addition to the other fonns of distribution
17
l' ~~
available under this Article X,.,and to the extent permitted under Section 10.06, a
Beneficiary may elect to receive the Participant's death benefit in monthly,
quarterly or annual installments over a 5 year period, unless the Participant
elected otherwise. In the absence of an election, the Retirement Committee will
direct the Trustee to distribute the Participant's death benefit in five annual
, installment payments commencing as soon as administratively practicable
following the end of the Plan Year that the Retirement Committee receives
notification of or otherwise confirms the,Participant's death.
Section 22.
That the first paragraph of, Section 10.07 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
10.07 Distributions Under Domestic Relations Orders. Nothing contained in this
Plan will' prevent the Trustee, in accordance with the direction of the Retirement
Committee, from complying with the provisions of a qualified domestic relations order
(as defined' in Code ~414(P)). The Retirement Committee may adopt any written
procedures relating to a qualified domestic relations order which the Retirement
Committee deems necessary for proper administration of the Plan. Th~ Plan
spccificallydoes not permits distribution to an alternate payee under a qualified domestic
relations order at any time, irrespecti'le of whctheruntil the Participant h$-attaineEl~ his
earliest retirement age . (as defined under Code ~4l4(P)) under the Plan. j,^.. distribl:Ition to
an alternate payee prior to the Participant's attainment of earliest, retirement age is
a'/ailable only if: (1) the ardor speoifies distribution at that time or permits an agreement
between the Plan and the alternate payee to authorize an earlier distribution; and (2) if the
present value of the alternate payee's ,benefits Utider the Plan exoeeds $5,000, and the
order r~quires, the alternato payee oonsents to any distribution oocurring prior to the
Partioipant's attainment of earliest retirOOlent age'. Nothing in this Section 10.07 permits
a Participant a right to receive distribution at a time otherwise not permitted under the
Plan nor does it pennit the alternate, payee to receive a form of payment not pennitted
under the Plan.
Section 23.
That the first paragraph of Section 11.05 of the Defined Benefit Plan and Trust for
Employees of the City of Winter, Springs be amended as follows:
11.05 Merger/Direct Transfers. The Trustee will not cons'ent to, or be a party to,
any merger or consolidation with another plan, or to a transfer of assets or liabilities to
another plan, unless immediately after the merger, consolidation or transfer, the surviving
Plan provides each Participant a benefit equal to or greater than the benefit each
Participant would have received had the Plan tenninated immediately before the merger
or consolidation or transfer. The Trustee possesses the specific authority to enter into
18
, ~~ ,'"""
merger agreements or direct transfer of assets agreements with the trustees of other
retirement plans described in Code ~401(a), and to accept the direct transfer of plan
assets, or to transfer plan assets, as a party to any such agreement. If the Trustee accepts
a transfer of assets from other retirement plans described in Code ~40 1 ( a) (other than the
Money Purchase Plan) on behalf of a' Participant, the Trustee shall utilize such assets to
provide additional Accrued Benefits'for such Participant. The Trustee possesses the '
specific authority to accept a transfer of assets of all or any portion of a Participant's
account in the Money Purchase Plan.
Section 24. .
That this resolution shall supersede any and all conflicting provisions of any previously
adopted resolutions.
Section 25.
That should any section or provision, of this resolution or any portio"" thereof, any
paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid" such
decision shall not affect the validity of the rema.ihder hereof as a whole or part thereof other than
the part dec1ared:to be invalid. .
Section 26.
That this resolution shall take effect as of October 1, 2000.
PASSED and ADOPTED this 10th day of November
. 2001.
ATTEST:
.'
19
;c~
b
DEFINED BENEFIT PLAN AND TRUST
FOR
EMPLOYEES OF THE
CITY OF WINTER SPRINGS
November 10,2003 Restatement
As Amended by Resolution 2003-44
Adopted by the City of Winter Springs City Commission
November 10, 2003
"
TABLE OF CONTENTS
ARTICLE I - DEFINITIONS.................................................................................................... 1.1
1.0 I "Plan" ............................................................................................................. .............. 1.1
1.02 "Employer" ................................................................................................................... 1.1
1.03 "Trustee" ........ .............. ..................... .................................. ......................................... 1.1
1.04 "Plan Administrator" .................................................................................................... 1.1
1.05 "Retirement Committee: ................................... .................. .................................. ....... 1.1
1.06 "Employee" ........................................... ....................... ...................:............................ 1.1
1.07 [Reserved] ........................................................................... ......................................... 1.2
1.08 "Participant" ....................................................... .......................................................... 1.2
1.09 "Beneficiary" ................................................................ ................................................ 1.2
1.10 Compensation Definitions........................................................................................... 1.2
1.11 "Accrued Benefit" ........................................................................................................ 1.3
1.12 Actuarial Definitions and Related Rules.......... ......... ........ ........................................... 1.3
1.13 "Plan Entry Date" ..... ............. ......... ....... ......... ......................... ............................. ........ 1.4
1.14 "Plan Year" .................................................................................................................. 1.4
1.15 "Effective Date" ........................................................................................................... 1.4
1.16 "Nonforfeitable" ............................................................. ....................................... ~...... 1.4
1.17 "Accounting Date" ....................................................................................................... 1.4
1.18 "Trust" ....... ..................................... ............. ............... .............. ....... ...... ......... .............. 1.4
1.19 "Trust Fund" ..... ............... ..................................... .......... .................................. ............ 1.4
1.20 "Nontransferable Annuity" .....,....... .......................... ......... ..... ...................................... 1.4
1.21 [Reserved] ........ ................ .................................... .................................... .................... 1.4
1.22 "Code" ................ ...................... ........................................ ....... ..................................... 1.4
1.23 " Service"................................................................................................ .......... .............. 1.4
1.24 Definitions and Special Rules Relating to Hours of Service ....................................... 1.4
1.25 "Disability" .................... .................................... ...................... ..................;................... 1.6
ARTICLE II - EMPLOYEE PARTICIPANTS................. ........... ........... ........... ............... ....... 2.1
2.01 Eligibility..... ..... ........................................................................................................... 2.1
2.02 Break in Service - Eligibility........................................................................................2.1
2.03 Participation upon Re-employment ............ ................. ......................... ....................... 2.2
ARTICLE III - EMPLOYER CONTRIBUTIONS .................................................................. 3.1
3.01 Amount......................... .......... ........ ............... ...... ..... ....... ...... ...... ................. ..... .......... 3.1
3.02 Determination of Contribution.......................... ........... ....... ......................... ..... ........... 3.1
3.03 Time of Payment of Contribution ................................................................................ 3.1
3.04 Nonvested Accrued Benefit........................ ...... ........................................................... 3.1
3.05 Limitation on Annual Benefit ........................ .............. ............ ................. ,.................. 3.1
3.06 Definitions - Article III ................................... .................... ......................................... 3.3
ARTICLE IV - PARTICIPANT CONTRIBUTIONS.............................................................. 4.1
4.01 Required Participant Contributions..................... ...................... ................... ............ .... 4.1
4.02 Direct Transfers of Eligible Rollover Distributions..................................................... 4.1
4.03 Pat1icipant Contributions Transferred from Money Purchase Pension Plan ...............4.2
ARTICLE V - NORMAL RETIREMENT BENEFIT ............................................................ 5.1
5.0] Normal Retirement AgelNormal Retirement Date ...................................................... 5.1
5.02 Amount of Normal Retirement Pension/Accrued Benefit ........................................... 5.]
5.03 Normal Form of Benefit................................................................ ............................... 5.2
5.04 Late Retirement............................................................................................................ 5.2
ARTICLE VI - EARLY RETIREMENT PENSION ..............................................................6.1
6.01 Eligibility for Early Retirement Pension...................................................................... 6.1
6.02 Payment of Early Retirement Pension. ........................................................................ 6.1
ARTICLE VII - DISABILITY PENSION................................. ............ .................................. 7.1
7.01 Disability Pension........................................................................... ............................. 7.1
ARTICLE VIII - DEFERRED VESTED PENSION - DEATH BENEFIT ......................... 8.1
8.01 Deferred Vested Pension...................................................... ........................................ 8.1
8.02 Amount of Deferred Vested Pension ................................... ........................................ 8.1
8.03 Payment of Deferred Vested Pension........................... ............................. .................. 8.1
8.Q4 Pre-Retirement Death Benefit.. ................................................... ........ ......................... 8.1
8.05 Vesting Schedule........................ ...... ................................... ........................................ 8.1
8 .06 Year of Service - Vesting.............. .............. ......................... .............. ........ ............ ...... 8.3
8.07 Break in Service - Vesting ...........................................................:............................... 8.3
8.08 Included Years of Service - Vesting ............................................................................ 8.3
8.09 Disregard of Accrued Benefit ........... ............ ................ ..................... .............. ............ 8.3
ARTICLE IX - PRERETIREMENT SURVIVOR ANNUITy.............................................. 9.1
9.01 Preretirement Survivor Annuity - Eligibility............................................................... 9.1
9.02 Waiver Election - Preretirement Survivor Annuity..................................................... 9.1
9.03 Reduction of Pension Benefits.......................... .................... ........... ................ ............ 9.2
ARTICLE X - PAYMENT OF ACCRUED BENEFIT -
OPTIONAL FORMS OF PAYMENT ................................................................................. 10.1
1 0.01 Form of Benefit............. ................. ........... .................... ............................................. 10.1
10.02 Qualified Joint and Survivor Annuity ........................................................................ 10.2
10.03 Commencement of Benefits. ...................................................................................... 10.2
10.04 Waiver Election - Qualified Joint and Survivor Annuity .......................................... 10.4
10.05 Optional Forms of Distribution...... .......... ..... ............................ ............ ........ .....: ....... 10.4
10.06 Mandatory Distributions..................... .......................... ............................................. 10.5
10.07 Distributions Under Domestic Relations Orders ....................................................... 10.9
ARTICLE XI - MISCELLANEOUS PROVISIONS
AFFECTING THE PAYMENT OF BENEFITS .................................................................... 11.1
11.01 General............... ......... ............. ............... .................. ..... ..... ....... ........... ..................... 11.1
11.02 Nonduplication of Benefits ........................................................................................ 11.1
11
11.03 [Reserved] .................................................................................................................. 11.1
11.04 No Disregard of Service............................................................................................. 11.1
11.05 MergerlDirect Transfers................................. .................................................. .......... 11.1
ARTICLE XII - OTHER PROVISIONS AFFECTING BENEFITS ................................... 12.1
12.01 Assignment or Alienation............... ..................... ................. ..................................... 12.1
12.02 [Reserved].... .... ........ ........................................ .......... ................................................. 12.1
12.03 [Reserved].................................................................................................................. 12.1
12.04 Distribution Upon Termination of Trust.. .................................................................. 12.1
12.05 Overfunding............................................................................,.................................. 12.1
ARTICLE XIII - EMPLOYER ADMINISTRATIVE PROVISIONS .................................. 13.1
13.01 Information to Committee................................... ....... ................................. ............... 13.1
13.02 No Liability..... ............. .... ...... ........... ............. ...................... ......................... ............. 13.1
13.03 Indemnity of Plan Administrator and Committee...................................................... 13.1
ARTICLE XIV - PARTICIPANT ADMINISTRATIVE PROVISIONS .............................14.1
14.01 Beneficiary Designation.... .......... ........... ........ ......... ............. ........... ..... .......... ............ 14.1
14.02 No Beneficiary Designation/Death of Beneficiary..................................................... 14.1
14.03 Personal Data to Committee ...... ................. ............ ....... ......... ....................... ............ 14.1
14.04 Address for Notification .............. ................... ...... ..... ......................... ........... ............ 14.1
14.05 Notice of Change in Terms.................... ................ ............. .......... ............................. 14.2
14.06 Litigation Against the Trust ............. .... .............. ........ ......... ............. ........ .......... ........ 14.2
14.07 Information Available.................................. .......... ....................... ............................. 14.2
14.08 Appeal Procedure for Denial of Benefits................................................................... 14.2
ARTICLE XV - RETIREMENT COMMITTEE -
DUTIES WITH RESPECT TO PARTICIPANTS' ACCRUED BENEFITS ...................15.1
15.01 Members' Compensation, Expenses.. .............. .............................. ........ ........... ..... ..... 15.1
15. 02 Term........................................................................................................................... 15.1
15.03 Powers.............................. .............. .......................................................... ...... ............ 15.1
15.04 General................................... ...................... .............................................................. 15.1
15.05 Funding Policy....................................................... .................................... ................ 15.2
15.06 Manner of Action........ ..... .............. ....... ................ ............ ............. ............. ...... ......... 15.2
15.07 Authorized Representative......................... .......................................... ......... ............. 15.2
15.08 Interested Member ............................. ........................................ ................................ .15.2
15.09 Participant Records. ....... ........ ......................... ..................... ..................... .......... ....... 15.2
15.10 Unclaimed Accrued Benefit - Procedure ................................................................... 15.2
ARTICLE XVI - TRUSTEE, POWERS AND DUTIES ..................................................... 16.1
16.01 Acceptance....... ................................. ..... ........ ...... ............................................. ......... 16.1
16.02 Receipt of Contributions... ................... ........... ...................... ......... ......... ................ ... 16.1
16.03 Investment Powers ...................................... ....... ........... ...:.... ..................................... 16.1
16.04 Records and Statements ..................... ..... .............. ..... ......... ..... .......... .............. .......... 16.3
16.05 Fees and Expenses From Fund... .... ............ ................. ......... ............ .................... ...... 16.3
111
16.06 Parties to Litigation.................................................................................................... 16.3
16.07 Professional Agents ................................................................................................... 16.4
16.08 Distribution Directions............................................................................................... 16.4
16.09 Third Party/Multiple Trustees.............................. ...................................................... 16.4
16.10 Resignation.................................................. .............................................................. 16.4
16.11 Removal................. .............................................................. ...................................... 16.4
16.12 Interim Duties and Successor Trustee........................................................................ 16.5
16.13 Valuation of Trust. ................................... ................................ .................... ...... ........ 16.5
16.14 Limitation on Liability - If Investment Manager or
Independent Fiduciary Appointed ....................................................... ....................... 16.5
16.15 Investment in Group Trust Fund / Combined Trust................................................... 16.5
ARTICLE XVII - INVESTMENT IN INSURANCE OR ANNUITY CONTRACTS ..... 17.1
17.01 Purchase of Life Insurance and Annuity Contracts.................................................... 17.1
ARTICLE XVIII - MISCELLANEOUS............. .........................:.......................................... 18.1
18.01 Evidence....................................................................................................... .............. 18.1
18.02 No Responsibility for Employer Action ............................. ............... .................. ...... 18.1
18.03 Fiduciaries Not Insurers ............................................................................................. 18.1
18.04 Waiver of Notice................... ................................................... .................. ........ ........ 18.1
18.05 Successors............................................................................................................... ... 18.1
18.06 Word Usage............ ................................ ....... ..................... ............ ........................... 18.1
18.07 State Law......... .......... ...... ..... ...... ................. ........ ............. ........ ...... ......... ........ ........... 18.1
18.08 Employtllent Not Guaranteed....... ......... ..... ................. ...... ........ ................................. 18.1
ARTICLE XIX - EXCLUSIVE BENEFIT, AMENDMENT, TERMINATION................... 19.1
19.01 Exclusive Benefit ....................................................................................................... 19.1
19.02 Amendment By Employer.. .................... ........ ....... ...... ....... ....... ........................ ......... 19.1
19.03 Discontinuance..... ........... ......... ......... ... ......... ................... .... ... ......... ..... .......... .... ... .... 19.1
19.04 Full Vesting on Termination ...................................................................................... 19.2
19.05 Termination................................................................................................................ 19.2
Article A - Appendix to Plan and Trust Agreement .............................................................. 19.3
Execution Page..................................................................................... ......... ..... ..........:... ...... 19.4
IV
Defined Benefit Plan and Trust for
Employees of the City of Winter Springs
The City of Winter Springs, a municipality incorporated under the laws of the State of
Florida, makes this Agreement with the Board of Trustees of the City of Winter Springs, as Trustee.
WITNESSETH:
The City of Winter Springs continues, within this Trust Agreement, a Plan for the purpose of
providing retirement benefits for eligible Employees. This Plan is an amended plan, in restated form,
the original plan being effective October 1, 1997 and this restated Plan is also effective October 1,
1997 (except to the extent otherwise provided herein). The provisions of this Plan apply solely to an
Employee whose employment with the Employer terminates on or after the Effective Date of the
Plan. If an Employee's employment with the Employer terminates prior to the Effective Date, that
Employee is not entitled to any benefit under the Plan.
Now, therefore, in consideration of their mutual covenants, the Employer and the Trustee
agree as follows:
ARTICLE I - DEFINITIONS
1.01 "Plan" means the retirement plan established by the Employer in the form of this
Agreement, designated as the Defined Benefit Plan and Trust for Employees ofthe City of Winter
Springs.
1.02 "Employer" means the City of Winter Springs.
1.03 "Trustee" means the Board of Trustees ofthe City of Winter Springs, or any successor
in office who in writing accepts the position of Trustee.
1.04 "Plan Administrator" is the Employer unless the Employer designates another person
to hold the position of Plan Administrator. In addition to his other duties, the Plan Administrator has
full responsibility for compliance with any reporting and disclosure rules applicable to the Plan.
1.05 "Retirement Committee" means the Board of Trustees of the City of Winter Springs,
or any successor who in writing accepts the position of the Retirement Committee.
1.06 "Employee" means any employee of the Employer. Individuals who perform services
for the Employer in any capacity other than as an Employee, determined pursuant to the books and
records of the Employer (e.g., independent contractors or leased employees within the meaning of
Code ~ 414(n), even if such individuals are reclassified as Employees by any governmental agency
(other than the Employer) or judicial decision), are not Employees for purposes of the Plan, and thus,
are not eligible to participate in the Plan.
1.1
':'
1.07 (Reserved]
1.08 "Participant" is an Employee who is eligible to be and becomes a Participant in
accordance with the provisions of Section 2.01. .
1.09 "Beneficiary" is a person designated by a Participant or by the Plan who is or may
become entitled to a benefit under the Plan. A Beneficiary who becomes entitled to a benefit under
the Plan remains a Beneficiary under the Plan until the Trustee has fully distributed his benefit to
him. A Beneficiary's right to (and the Plan Administrator's, the Retirement Committee's or a
Trustee's duty to provide to the Beneficiary) information or data concerning the Plan does not arise
until he first becomes entitled to receive a benefit under the Plan.
1.10 Compensation Definitions. Any reference in this Plan to Compensation is a reference
to the definition in this Section 1.10, unless the Plan reference specifies a modification to this
definition. The Retirement Committee will take into account only Compensation actually paid for
the relevant period.
(A) Total Compensation. "Total Compensation" means wages, salaries, and other amounts
received (whether or not paid in cash) for personal services actually rendered in the course of
employment with the Employer, but only to the extent included in gross income. This definition
includes, but is not limited to commissions, overtime pay and bonuses. With respect to the Plan
Years beginning prior to October 1, 1998, Total Compensation does not include elective
contributions. With respect to Plan Years beginning on and after October 1, 1998, Total
Compensation includes elective contributions. Total Compensation also does not include:
(1 ) Employer contributions to a plan of deferred compensation to the extent the
contributions are not included in the gross income of the Employee for the taxable year in
which contributed, on behalf of an Employee to a Simplified Employee Pension Plan to the
extent such contributions are excludible from the Employee's gross income, and any
distributions from a plan of deferred compensation, regardless of whether such amounts are
includible in the gross income of the Employee when distributed.
(2) Other amounts which receive special tax benefits, such as premiums for group term
life insurance (but only to the extent that the premiums are not includible in the gross income
of the Employee), or contributions made by an Employer towards the purchase of an annuity
contract described in Code S403(b) (whether or not the contributions are excludible from the
gross income of the Employee).
(B) Plan Compensation. Plan Compensation means Total Compensation described in Section
1.10(A), except that Plan Compensation includes elective contributions for all Plan Years. Plan
Compensation applies to determine a Participant's benefit formula and Accrued Benefit under Article
V.
(C) Elective Contributions. Elective contributions are amounts excludible from the Employee's
gross income under Code SS125, 402(e)(3), 402(h) or 403(b), and contributed by the Employer, at
1.2
the Employee's election, to a Code S40 1 (k) arrangement, a Simpiified Employee Pension, cafeteria
plan or tax-sheltered annuity. Elective contributions also include: (1) Compensation deferred under
a Code S457 plan maintained by the Employer; and (2) Employee contributions "picked up" by the
Employer and, pursuant to Code S414(h)(2), treated as Employer contributions.
(D) Limitations on Compensation.
(1) Compensation Limitation. For any Plan Year beginning after December 31, 1995, the
Retirement Committee must take into account no more Plan Compensation than the
Compensation Limitation prescribed by Code S40 1 (a)( 17). The Compensation Limitation is
$150,000 for the 1996 Plan Year. For Plan Years beginning after December 31, 1996, the
Compensation Limitation is the adjusted dollar amount determined in accordance with Code
s401(a)(17).
The Compensation Limitation in effect for any Plan Year (or for any 12-month
Compensation period) is the Compensation Limitation in effect at the beginning ofthat Plan
Year (or other 12-month period). For a Plan Year (or other Compensation measuring period)
ofless than 12 months, the Compensation Limitation is a prorated dollar amount, determined
by multiplying the Compensation Limitation by a fraction equal to the number of months in
the short period divided by 12.
(2) Average Compensation. When determining Average Compensation for a Plan Year
beginning after December 31, 1995, Compensation for any prior Compensation period is
subject to the Compensation Limitation in effect for that prior Compensation period, using
$150,000 as the Compensation Limit in effect for any prior Compensation period.
1.11 "Accrued Benefit" means the benefit determined under Article V.
1.12 Actuarial Definitions and Related Rules.
(A) Definitions.
(1) "Actuarial Equivalent" means a benefit of equal value computed by using the
following assumptions, subject to the requirements of this Section 1.12:
Pre- Retirement Interest: 8%
and Mortality: 1983 Group Annuity Mortality Table, Male Rates
Post-Retirement Set Back Two Years for Females
(2) "Present value" means the single sum Actuarial Equivalent of the Participant's
Accrued Benefit.
(3) "Actuary" means an enrolled actuary selected by the Retirement Committee to
provide actuarial services for the Plan.
1.3
(B) Interest Rate. When determining the amount of a Participant's distribution or the present
value of the Participant's Accrued Benefit, the interest rate used to make an Actuarial Equivalent
determination is the applicable interest rate specified in Section 1.12(A).
1.13 "Plan Entry Date" means the date(s), specified in Section 2.01.
1.14 "Plan Year" means the fiscal year of the Plan, a 12 consecutive month period ending
every September 30.
1.15 "Effective Date" of this Plan is October 1, 1997.
1.16 "Nonforfeitable" means a Participant's or Beneficiary's unconditional claim, legally
enforceable against the Plan, to the Participant's Accrued Benefit.
1.17 "Accounting Date" is the first day of the Plan Year.
1.18 "Trust" means the separate Trust created under the Plan.
1.19 "Trust Fund" means all property of every kind held or acquired by the Trustee under
the Plan.
1.20 "Nontransferable Annuity" means an annuity which by its terms provides that it may
not be sold, assigned, discounted, pledged as collateral for a loan or security for the performance of
an obligation or for any purpose to any person other than the insurance company. If the Trustee
distributes an annuity contract, the contract must be a Nontransferable Annuity.
1.21 [Reserved]
1.22 "Code" means the Internal Revenue Code of 1986, as amended.
1.23 "Service" means any period of time the Employee is in the employ of the Employer,
including any period the Employee is on an unpaid leave of absence authorized by the Employer
under a uniform, nondiscriminatory policy applicable to all Employees. "Separation from Service"
means a separation from Service with the Employer maintaining this Plan.
1.24 Definitions and Special Rules Relating to Hours of Service
(A) Definition of Hours of Service. "Hour of Service" means:
(1) Each Hour of Service for which the Employer, either directly or indirectly, pays an
Employee, or for which the Employee is entitled to payment, for the performance of duties.
The Retirement Committee credits Hours of Service under this paragraph (1) to the
Employee for the computation period in which the Employee performs the duties,
irrespective of when paid;
1.4
(2) Each Hour of Service for back pay, irrespective of mitigation of damages, to which
the Employer has agreed or for which the Employee has received an award. The Retirement
Committee credits Hours of Service under this paragraph (2) to the Employee for the
computation period(s) to which the award or the agreement pertains rather than for the
computation period in which the award, agreement or payment is made; and
(3) Each Hour of Service for which the Employer, either directly or indirectly, pays an
Employee, or for which the Employee is entitled to payment (irrespective of whether the
employment relationship is terminated), for reasons other than for the performance of duties
during a computation period, such as leave of absence, vacation, holiday, sick leave, illness,
incapacity (including disability), layoff, jury duty or military duty. The Retirement
Committee will credit no more than 501 Hours of Service under this paragraph (3) to an
Employee on account of any single continuous period during which the Employee does not
perform any duties (whether or not such period occurs during a single computation period).
(4) Each Hour of Service the Employee is on an unpaid leave of absence authorized by
the Employer under a uniform, nondiscriminatory policy applicable to all Employees under
which the Employer specifically credits Hours of Service for such unpaid leave of absence.
The Retirement Committee will not credit an Hour of Service under more than one of the
above paragraphs. A computation period for purposes of this Section 1.24 is the Plan Year, Year of
Service period, Break in Service period or other period, as determined under the Plan provision for
which the Retirement Committee is measuring an Employee's Hours of Service. The Retiremel).t
Committee will resolve any ambiguity with respect to the crediting of an Hour of Service in favor of
the Employee.
(B) Method of Crediting Hours of Service. The Retirement Committee will credit every
Employee with Hours of Service on the basis of the "actual" method. For purposes of the Plan,
"actual" method means the determination of Hours of Service from records of hours worked and
hours for which the Employer makes payment or for which payment is due from the Employer.
(C) Maternity/Paternity Leave. Solely for purposes of determining whether the Employee incurs
a Break in Service under any provision of this Plan, the Retirement Committee must credit Hours of
Service during an Employee's unpaid absence period due to maternity or paternity leave. The
Retirement Committee considers an Employee on maternity or paternity leave if the Employee's
absence is due to the Employee's pregnancy, the birth of the Employee's child, the placement with the
Employee of an adopted child, or the care of the Employee's child immediately following the child's
birth or placement. The Retirement Committee credits Hours of Service under this paragraph on the
basis of the number of Hours of Service the Employee would receive if he were paid during the
absence period or, if the Retirement Committee cannot determine the number of Hours of Service the
Employee would receive, on the basis of8 hours per day during the absence period. The Retirement
Committee will credit only the number (not exceeding 501) of Hours of Service necessary to prevent
an Employee's Break in Service. The Retirement Committee credits all Hours of Service described
in this paragraph to the computation period in which the absence period begins or, if the Employee
does not need these Hours of Service to prevent a Break in Service in the computation period in
1.5
:'
which his absence period begins, the Retirement Committee credits these Hours of Service to the
immediately following computation period.
1.25 "Disability" means a physical or mental condition of a Participant permitting such
Participant to be eligible for disability benefits under the Employer's long term disability program.
* * * * * * * * * * * * * * *
1.6
ARTICLE II - EMPLOYEE PARTICIPANTS
2.01 Eligibility. Each Employee (other than an Excluded Employee) becomes a Participant
in the Plan on the first day of the month (if employed on that date) immediately following the date 6
months after his Employment Commencement Date. "Employment Commencement Date" means
the date on which the Employee first performs an Hour of Service for the Employer.
(A) Excluded Employee
(1) An Employee is an Excluded Employee ifhis customary weekly employment with the
Employer is less than 29 hours. An Employee is an Excluded Employee if he is actively
participating (and "benefiting" within the meaning of Treas. Reg. ~ 1.410(b)-3) in another
qualified plan maintained by the Employer other than the Money Purchase Pension Plan and
Trust for Employees of the City of Winter Springs, Florida (hereinafter referred to as the
"Money Purchase Plan").
(2) If a Participant has not incurred a Separation from Service but becomes an Excluded
Employee, then during the period such a Participant is an Excluded Employee, the
Participant will not accrue a benefit under the Plan attributable to any period during which he
is an Excluded Employee. However, during such period of exclusion, the Participant,
without regard to employment classification, continues to receive credit for vesting under
Article VIII for each included Year of Service.
(3) If an Excluded Employee who is not a Participant becomes eligible to participate in
the Plan by reason of a change in employment classification, he will participate in the Plan
immediately ifhe has satisfied the eligibility conditions of Section 2.01 and would have been
a Participant had he not been an Excluded Employee during his period of Service.
Furthermore, the Plan takes into account all of the Participant's included Years of Service
with the Employer as an Excluded Employee for purposes of vesting credit under Article
VIII.
(B) Employees with Non-Contributing Service. Any Employee who completed Years of Service
prior to adoption of Resolution No. 2003-44, but did not make contributions to this Trust Fund or to
the Money Purchase Plan, shall be credited with Years of Accrual Service upon payment of the
Required Participant Contributions due under this Plan and the required participant contributions due
under the Money Purchase Plan for such service.
2.02 Break in Service - Eligibility. For purposes of participation in the Plan, the Plan does
not apply any Break in Service rule.
2.1
"
2.03 Participation upon Re-employment. A Participant whose employment terminates will
re-enter the Plan as a Participant on the date of his re-employment. An Employee who satisfies the
Plan's eligibility conditions but who terminates employment with the Employer prior to becoming a
Participant will become a Participant on the later of the Plan Entry Date on which he would have
entered the Plan had he not terminated employment or the date of his reemployment. Any Employee
who terminates employment prior to satisfying the Plan's eligibility conditions becomes a Participant
in accordance with the provisions of Section 2.01.
* * * * * * * * * * * * * * *
2.2
ARTICLE III - EMPLOYER CONTRIBUTIONS
Part I. Determination of Employer's Contributions.
3.01 Amount.
(A) The Employer intends to make such contributions as are necessary to fund the Plan on a
sound actuarial basis, in accordance with applicable law.
(B) The Employer contributes to this Plan on the condition its contribution is not due to a mistake
of fact. The Trustee, upon written request from the Employer, must return to the Employer the
amount of the Employer's contribution made by the Employer by mistake of fact. The Trustee will
not return any portion of the Employer's contribution under the provisions of this paragraph more
than one year after the Employer made the contribution by mistake of fact. Furthermore, the Trustee
will not increase the amount of the Employer contribution returnable under this Section 3.01 for any
earnings attributable to the contribution, but the Trustee will decrease the Employer contribution
returnable for any losses attributable to it.
3.02 Determination of Contribution. The Employer, from its records and the reports of
the Actuary, will determine the amount of any contribution to be made by it to the Trust under the
terms of the Plan. In this regard, the Employer may place full reliance upon all reports, opinions,
tables, valuations, certificates and computations the Actuary furnishes the Employer.
3.03 Time of Payment of Contribution. The Employer shall make its contribution to the
Trustee not less frequently than in quarterly installments. However, contributions shall be
considered timely ifpaid to the Trustee within 90 days of the date that such payments are due.
3.04 Nonvested Accrued Benefit. The Trustee will retain in the Trust all amounts
representing the nonvested Accrued Benefit of Participants who have terminated employment. The
Employer will not use forfeited benefits to increase the benefits of other Participants but instead will
use the amounts to reduce its contribution for future Plan Years.
Part 2. Limitations on Annual Benefits.
3.05 Limitation on Annual Benefit. A Participant's Annual Benefit payable at any time
within a Limitation Year may not exceed the limitations of this Section 3.05, even if the benefit
formula under the Plan would produce a greater Annual Benefit.
(A) Commencement between ages 62 and 65. A Participant's Annual Benefit payable at an age
not less that 62 nor greater than 65, may not exceed the lesser of $90,000 (or such larger dollar
amount as the Commissioner of Internal Revenue may prescribe) or 100% of the Participant's
average Compensation for his high 3 consecutive Years of Service.
(B) Commencement prior to age 62. If a Participant's Annual Benefit commences prior to his
attaining age 62, the Retirement Committee will adjust the $90,000 (or the larger adjusted dollar
3.1
~
amount) limitation of this Section 3.05 to the Actuarial Equivalent of an Annual Benefit equal to
such dollar limitation commencing at age 62. The Actuarial Equivalent under the immediately
preceding sentence may not be less than $75,000 in the event a Participant's Annual Benefit
commences at or after age 55. In the event a Participant's Annual Benefit commences prior to age
55, the Actuarial Equivalent will equal the greater of (1) the Actuarial Equivalent of a $75,000
Annual Benefit commencing at age 55 or (2) the Actuarial Equivalent of a $90,000 (or larger
adjusted dollar amount) Annual Benefit commencing at age 62. To determine the Actuarial
Equivalent under this paragraph, the Retirement Committee will use an interest rate assumption
equal to the greater of 5% per annum or the rate specified in Section 1.12 and the Applicable
Mortality Table.
(C) Commencement after age 65. If a Participant's Annual Benefit commences after his attaining
age 65, the Retirement Committee will adjust the $90,000 (or larger adjusted dollar amount)
limitation of this Section 3.05 to the Actuarial Equivalent of an Annual Benefit equal to such dollar
limitation commencing at age 65. To determine the Actuarial Equivalent under this paragraph, the
Retirement Committee will use an interest rate assumption equal to the lesser of 5% per annum or
the rate specified in Section 1.12 and the Applicable Mortality Table.
(D) [Reserved].
(E) Adjustment for Years ofServiceN ears of Participation Less Than 10. The $90,000 (or such
larger adjusted dollar amount) limitation described in this Section 3.05 applies to a Participant who
has completed at least 10 Years of Participation in the Plan. If a Participant has less than 10 Years
of Participation in the Plan at the time his benefits commence, the Retirement Committee will
multiply his dollar limitation by a: fraction, the numerator of which is the number of Years of
Participation (including fractional years) in the Plan and the denominator of which is 10. The
reductions described in this paragraph will not reduce a Participant's maximum dollar limitation to
less than one-tenth of the maximum dollar limitation determined without regard to the reductions.
(F) Alternate Forms of Payment. If the Trustee pays the Participant's benefit in a form other than
an Annual Benefit, the benefit paid may not exceed the Actuarial Equivalent of the maximum
Annual Benefit payable as a straight life annuity. To determine the Actuarial Equivalent under this
paragraph, the Retirement Committee will use an interest rate assumption equal to the greater of 5%
per annum or the rate specified in Section 1.12 and the Applicable Mortality Table.
(G) Adjustments to Dollar Limitation. Any adjustment to the dollar limitation of this Section
3.05 does not take effect until the first day of the calendar year for which the Commissioner of
Internal Revenue publishes the adjustment. The new limitation will apply to the Limitation Year
ending with or within the calendar year for which the Commissioner of Internal Revenue makes the
adjustment.
(H) Application of Limitations. A Participant's Accrued Benefit payable at any time may not
exceed the applicable limitation under this Section 3.05. The Retirement Committee will apply the
limitations ofthis Section 3.05 (as reduced, if applicable, by Section 3.07) to the calculation ofthe
Participant's normal retirement pension prior to determining the Participant's Accrued Benefit.
3.2
3.06 Definitions - Article III. The definitions in this Section 3.06 apply to the limitation
provisions of Part 2 of Article III. For purposes of Article III, the following terms mean:
(A) General Definitions.
(1) Annual Benefit. The Participant's retirement benefit (including any portion of the
Participant's retirement benefit payable to an alternate payee under a qualified domestic
relations order satisfying the requirements of Code S414(p)) attributable to Employer
contributions payable in the form of a straight life annuity or a qualified joint and survivor
annuity, with no ancillary benefits (other than the survivor annuity).
(2) Compensation. Total Compensation, as determined under Section 1.1 O(A).
(3) Limitation Year. The Plan Year. If the Employer amends the Limitation Year to a
different 12 consecutive month period, the new Limitation Year must begin on a date within
the Limitation Year for which the Employer makes the amendment, creating a short
Limitation Year.
(4) Annual Addition. Annual Additions are the following amounts allocated on behalf of
a Participant for a Limitation Year, under a defined contribution plan maintained by the
Employer: (i) all Employer contributions; (ii) all forfeitures; and (iii) all Employee
contributions. Except to the extent provided in Treasury regulations, Annual Additions
include excess contributions described in Code S401(k), excess aggregate contributions
described in Code S40 I (m), irrespective of whether the plan distributes or forfeits such
excess amounts. Excess deferrals under Code S402(g) are not Annual Additions unless
distributed after the correction period described in Code S402(g). Amounts allocated after
March 31,1984, to an individual medical account (as defined in Code S415(1)(2)) included
as part of a defined benefit plan maintained by the Employer also are Annual Additions.
Furthermore, Annual Additions include contributions paid or accrued after December 31,
1985, for taxable years ending after December 31, 1985, attributable to post-retirement
medical benefits allocated to the separate account of a key employee (as defined in Code
S419A(d)(3)) under a welfare benefit fund (Code s419(e)) maintained by the Employer. For
a Limitation Year, the Annual Additions allocated on behalf of any Participant, to all defined
contribution plans maintained by the Employer, may not exceed the Maximum Permissible
Amount. The "Maximum Permissible Amount" is the lesser of en $30,000 (or, if greater, the
$30,000 amount as adjusted under Code S415(d), or (II) 25% of the Participant's
Compensation for the Limitation Year. If there is a short Limitation Year because of a
change in Limitation Year, the Retirement Committee will multiply the $30,000 limitation
(or larger limitation) on Annual Additions by the following fraction:
Number of months in the short Limitation Year
12
3.3
(5) Applicable Mortality Table. The Applicable Mortality Table means the mortality
table specified in Code S 417(e)(3) and set forth in Revenue Ruling 95-6 (or any applicable
subsequent pronouncement issued by Internal Revenue Service.
(6) Year of Participation. A Year of Participation is a Year of Accrual Service, as
determined under Section 5.02, but only if the Plan is in existence for such Year of
Participation and the Participant is a Participant in the Plan at least one day in that Year of
Participation. If the Participant receives credit for only a partial Year of Participation under
Section 1.11, he will receive credit for only a partial year for purposes of the limitations of
this Article III. For any other defined benefit plan taken into account, A Year of Participation
is each accrual computation period for which: (a) the Participant receives credit for at least
the number of hours of service (or period of service, if the plan uses elapsed time) necessary
to accrue a benefit for that accrual computation period; and (b) the eligibility conditions of
the plan include the Participant as a participant in that plan on at least one day of that accrual
computation period. If the Employee satisfies the conditions described in clauses (a) and (b),
he will receive credit for a Year of Participation (or a partial Year of Participation, if
applicable) equal to the amount of benefit accrual service (computed to fractional parts ofa
year) credited under that plan for the accrual computation period. A Participant receives
credit for a Year of Participation under another defined benefit plan only if the plan was
established no later than the last day ofthe accrual computation period to which the Year of
Participation relates. The Participant will not receive credit for more than one Year of
Participation under this paragraph (6) with respect to the same 12-month period.
(7) Employer. The Employer that adopts this Plan and any employers aggregated with
the Employer pursuant to Code SS414(b), 414(c), 414(m) or 414(0). Solely for purposes of
applying the limitations of this Article III, the Retirement Committee will determine the
aggregated employers by modifying Code SS414(b) and (c) in accordance with Code
S415(h).
(8) Defined Benefit Plan. A retirement plan which does not provide for individual
accounts for Employer contributions. The Retirement Committee must treat as a single plan
all defined benefit plans maintained by the Employer, whether or not terminated.
(9) Defined Contribution Plan. A retirement plan which provides for an individual
account for each participant and for benefits based solely on the amount contributed to the
participant's account, and any income, expenses, gains and losses, and any forfeitures of
accounts of other participants which the plan may allocate to such participant's account. The
Retirement Committee must treat as a single plan all defined contribution plans maintained
by the Employer, whether or not terminated. For purposes of the limitations of this Article
III, the Retirement Committee will treat employee contributions made to a defined benefit
plan (including this Plan) maintained by the Employer as a separate defined contribution
plan. The Retirement Committee also will treat as a defined contribution plan an individual
medical account (as defined in Code S415(1)(2)) included as part of a defined benefit plan
maintained by the Employer and, for taxable years ending after December 31, 1985, a welfare
benefit fund under Code s419(e) maintained by the Employer to the extent there are post-
retirement medical benefits allocated to the separate account of a key employee (as defined in
Code S419 A( d)(3)).
3.4
(B) Definitions Relating to Defined Benefit and Defined Contribution Plan Limitation.
(1) Defined Benefit Plan Fraction. The defined benefit plan faction is the Participant's
Projected Annual Benefit divided by the Overall DB limitation.
(a) The "Projected Annual Benefit" means the annual retirement benefit (adjusted to an
actuarially equivalent straight life annuity if the plan expresses such benefit in a form other
than a straight life annuity or qualified joint and survivor annuity) of the Participant under the
terms of the defined benefit plan assuming he continues employment until his normal
retirement age (or current age, iflater) as stated in the defined benefit plan, his compensation
continues at the same rate as in effect in the Limitation Year under consideration until the'
date of his normal retirement age and all other relevant factors used to determine benefits
under the defined benefit plan remain constant as ofthe current Limitation Year for all future
Limitation Years.
(b) The "Overall DB Limitation" is the lesser of (i) 125% of the dollar limitation in effect
under Code S415(b)(1)(A) for the Limitation Year, or (ii) 140% of the Participant's average
Compensation for his high 3 consecutive Years of Service. The Overall DB Limitation
assumes the Participant has at least 10 Years of Service or the Retirement Committee will
have at least laY ears of Service at Normal Retirement Age. To determine whether the
Participant will have at least laY ears of Service, the Retirement Committee may include the
year in which the Participant reaches Normal Retirement Age, but only if it reasonable to
anticipate he will receive credit for a Year of Service in that year. If a Participant fails to
satisfy this 10 Years of Service requirement, the Retirement Committee will reduce the
denominator of the Participant's Overall DB Limitation in the same manner as described
under Section 3.05(E) with respect to reductions for less than 10 Years of Service. If the
Participant's Current Accrued Benefit (as described in Section 3.05) exceeds the applicable
dollar limitation in effect under Code S415(b)(1 )(A), the Participant's Overall DB Limitation
may not be less than 125% of that Current Accrued Benefit.
(2) Defined Contribution Plan Fraction. The defined contribution plan fraction is the
Participant's Aggregate Annual Additions divided by the Overall DC Limitation.
(a) The "Aggregate Annual Additions" equal the sum, as of the close of the Limitation
Year, of the Annual Additions to the Participant's Account under the defined contribution
planes).
(b) The "Overall DC Limitation" is the sum of the lesser of the following amounts
determined for the Limitation Year and for each prior Year of Service with the Employer: (i)
125% of the dollar limitation in effect under Code S415(c)(1)(A) for the Limitation Year
(determined without regard to the special dollar limitations for employee stock ownership
plans), or (ii) 35% ofthe Participant's Compensation for the Limitation Year.
* * * * * * * * * * * * * * *
3.5
ARTICLE IV - PARTICIPANT CONTRIBUTIONS
4.01 Required Participant Contributions. The Plan did not permit nor require Participant
Contributions prior to October 1, 2000. Effective October I, 2000, each Participant is required to
contribute 3% of Compensation to the Plan, which contribution shall be considered the Required
Participant Contribution. The required participant contribution shall be deducted from each
Participant's Compensation whenever such Compensation is paid, and remitted to the Trustee.
Required participant contributions shall be considered an Employer "pick-up" contribution and shall
be designated as employer contributions pursuant to Section 414(h) of the Internal Revenue Code,
contingent upon the contributions being excluded from the Participant's gross income for federal
income tax purposes. For all other purposes of this Plan, such contributions shall be considered
Participant contributions.
4.02 Direct Transfers of Eligible Rollover Distributions.
, (A) General. This section applies to distributions made on or after October I, 2002.
Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee's
election under this section, a distributee may elect, at the time and in the manner prescribed by the
board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement
plan specified by the distribute in a direct rollover.
(B) Definitions.
(1) "Eligible rollover distribution" is any distribution of all or any portion of the balance
to the credit of the distributee, except that an eligible rollover distribution does not include:
any distribution that is one of a series of substantially equal periodic payments (not less
frequently than annually) made for the life (or life expectancy) of the distribute or the joint
lives (or joint life expectancies) of the distribute and the distributee's designated Beneficiary,
or for a specified period often years or more; any distribution to the extent such distribution
is required under section 40 1 (a)(9) of the Code; and the portion of any distribution that is not
includible in gross income. Any portion of any distribution which would be includible in
gross income will be an eligible rollover distribution if the distribution is made to an
individual retirement account described in section 408(a), to an individual retirement annuity
described in section 408(b) or to a qualified defined contribution plan described in section
401(a) or 403(a) that agrees to separately account for amounts so transferred, including
separately accounting for the portion of such distribution which is not so includible.
(2) "Eligible retirement plan" is an individual retirement account described in section
408( a) of the Code, an individual retirement annuity described in section 408(b) of the Code,
an annuity plan described in section 403(a) ofthe Code, an eligible deferred compensation
plan described in section 457(b) of the Code which is maintained by an eligible employer
described in section 457(e)(I)(A) of the Code and which agrees to separately account for
amounts transferred into such plan from this Plan, an annuity contract described in section
403(b) ofthe Code, or a qualified trust described in section 401(a) of the Code, that accepts
4.1
the distributee's eligible rollover distribution. This definition shall also apply in the case of
an eligible rollover distribution to the surviving spouse.
(3)' "Distributee" includes an employee or former employee. In addition, the employee's
or former employee's surviving spouse is a distributee with regard to the interest of the
spouse.
(4) "Direct rollover" is a payment by the Plan to the eligible retirement plan specified by
the distributee.
(C) Rollovers or Transfers into the Fund. On or after the effective date of Resolution No. 2003-
44, the fund will accept member rollover cash contributions and/or direct cash rollovers of
distributions for the purchase of permissive service credit under the Plan, as follows:
(I) Direct Rollovers or Member Rollover Contributions from Other Plans. The Plan will
accept either a direct rollover of an eligible rollover distribution or a member contribution of
an eligible rollover distribution from a qualified plan described in section 403(a) of the Code,
from an annuity contract described in section 403(b) of the Code, or from an eligible plan
under section 457(b) of the Code, which is maintained by a state, political subdivision of a
state, or any agency or instrumentality of a state or political subdivision of a state.
(2) Member Rollover Contributions from 401(a) Plans and IRAs. The Plan will accept a
member rollover contribution ofthe portion of a distribution from qualified plan described in
section 401 (a) ofthe Code, or from an individual retirement account or annuity described in
section 408(a) or 408(b) of the Code, that is eligible to be rolled over and would otherwise be
includible in the member's gross income.
4.03 Participant Account Balance Transferred from Money Purchase Pension Plan. A
Participant's account balance transferred from the Money Purchase Pension Plan and Trust for
Employees of the City of Winter Springs pursuant to Resolution No. 2003-44, shall become an
integral part of this Trust Fund; provided that such account balance, plus interest at a rate equal to the
interest rate on 30-year Treasury securities as published in the Internal Revenue Bulletin determined
as of the calendar month preceding the first day of the Plan year, and effective October 1, 2003, a
rate equal to the U.S. Treasury Department long-term average rate published on the last day of the
calendar month preceding the first day of the Plan year, or such other rate that may be approved by
the U.S. Treasury Department to replace the 30-year Treasury bond rate as a benchmark for
calculating lump sum payouts from defined benefit plans, shall be part of the Accrued Benefit
payable to a Participant upon normal retirement, except as reduced in accordance with Section 8.05.
* * * * * * * * * * * * * * *
4.2
ARTICLE V - NORMAL RETIREMENT BENEFIT
5.01 Normal Retirement Age/Normal Retirement Date.
(A) Normal Retirement Age. An Employee attains Normal Retirement Age on the date he attains
age 65.
(B) Normal Retirement Date. A Participant's Normal Retirement Date is the first day of the
month following the Participant's attainment of Normal Retirement Age. Each Participant who
retires on or after attaining the Normal Retirement Date receives a normal retirement pension.
5.02 Amount of Normal Retirement Pension/Accrued Benefit. The Annual Benefit
limitations of Article III apply to the determination of a Participant's normal retirement pension and
Accrued Benefit in the manner prescribed in Section 3.05(H).
(A) Normal Retirement Pension.
(1) Benefit Formula. A Participant's normal retirement pension equals 2% of the
Participant's Average Compensation multiplied by his Years of Accrual Service for service
prior to October 1,2000, and 3% of the Participant's Average Compensation multiplied by
his Years of Accrual Service for service on and after October 1,2000. Such pension will be
adjusted for any distribution in accordance with Section 8.05. The maximum number of
Years of Accrual Service taken into account in the normal retirement pension is 30, counting
forward from the date of initial participation to include any purchased past service.
(2) Average Compensation. Average Compensation is the average of the Participant's
Plan Compensation for the Averaging Period in the Participant's Compensation History
which results in the highest Average Compensation. A Participant's Compensation History is
the Participant's entire period of employment with the Employer. The Averaging Period is 3
consecutive Compensation periods (or the entire period of employment, if shorter). A
Compensation period is the 12-month period ending on the last day of the Plan Year.
(B) Accrued Benefit. Subject to the Annual Benefit limitations of Article III, a Participant's
Accrued Benefit is the normal retirement pension accrued by the Participant under the accrual
formula provided in this paragraph (B).
(1) Method of Accrual. As of any date, a Participant's Accrued Benefit is his normal
retirement pension calculated as of the determination date, based on the Years of Accrual
Service credited as of such date.
(2) Year of Accrual Service. Years of Accrual Service are Years of Service as
determined under Section 8.06, including Years of Service completed prior to his
participation in the Plan. Any Employee who completed Years of Service prior to the
adoption of Resolution No. 2003-44 but did not make contributions to this Trust Fund or to
the Money Purchase Pension Plan shall be credited with Years of Accrual Service upon
5.1
payment of the Required Participant Contributions due under this Plan and the required
participant contributions due under the Money Purchase Pension Plan for such service.
Years of Accrual Service also include "Years of Qualified Service". Years of Qualified
Service means any or all years of service performed by the Participant as an employee ofthe
Government of the United States, any State or political subdivision thereof or any agency or
instrumentality of any of the foregoing, other than the Employer, but only if all of the
following conditions are satisfied:
(a) the Pat1icipant makes a voluntary contribution to the Plan, in an amount
necessary to fund the benefit attributable to such Years of Oualified Service (as
determined by the actuary for the Plan, utilizing the actuarial definitions used for plan
funding purposes) and which does not exceed the amount necessary to fund the
benefit attributable to such Years of Oualified Service;
(b) the Participant makes the voluntary contribution described in paragraph (a)
above, in one lump sum payment to the Plan prior to receiving credit for such Years
of Oualified Service;
(c) the Participant's Accrued Benefit is either 100% Nonforfeitable at the time he
makes the voluntary contribution described in paragraph (3) above or will become
100% Nonforfeitable immediately after receiving credit for such Years ofOualified
Service: and
(d) the crediting of such Years of Qualified Service must not cause the
Participant to receive a retirement benefit for the same Years of Qualified Service
under more than one retirement plan.
5.03 Normal Form of Benefit. The Retirement Committee will compute a Participant's
normal retirement pension in the form of a straight life annuity. The Trustee will pay the
Participant's normal retirement pension in accordance with Article X.
5.04 Late Retirement.
(A) Actuarial Adjustment for Delayed Commencement! Accrual of Benefits After Normal
Retirement Date. A benefit commencing after Normal Retirement Date is the Actuarial Equivalent
of the Participant's Accrued Benefit payable as of the later of Normal Retirement Date or the last day
ofthe prior Plan Year. A Participant continues to accrue benefits after his Normal Retirement Date
if the Participant's Accrued Benefit would increase because of additional Service or Compensation.
A Participant's Accrued Benefit as of the end of each Plan Year following his Normal Retirement
Date is the greater of: (1) the normal retirement pension determined under the Plan, taking into
account Service and Compensation credited after Normal Retirement Date; or (2) the Accrued
Benefit, determined as of the later of Normal Retirement Date or the end of the prior Plan Year,
actuarially adjusted for late retirement.
* * * * * * * * * * * * * * *
5.2
ARTICLE VI - EARLY RETIREMENT PENSION
6.01 Eligibility for Early Retirement Pension. A Participant who has received credit for at
least I 0 Years of Service (as defined in Section 8.06) and has attained age 55 may elect an early
retirement pension. A Participant who separates from service after satisfying the service requirement
but not the age requirement may elect to receive an early retirement pension upon satisfying the age
requirement. In addition, a Participant who has completed 25 Years of Service (as defined in Section
8.06) may elect an early retirement pension. A Participant's early retirement pension is his
Nonforfeitable Accrued Benefit payable at Normal Retirement Date without actuarial reduction for
early commencement but only ifbenefits commence on or after the Participant attains age 55. If an
eligible Participant elects to commence his early retirement pension prior to attaining age 55, such
Participant's early retirement pension is the Actuarial Equivalent of his Nonforfeitable Accrued
Benefit payable at age 55.
6.02 Payment of Early Retirement Pension.
(A) If the present value ofthe Participant's early retirement pension does not exceed $3,500, the
Trustee will automatically pay the early retirement pension in lump sum, as soon as administratively
practicable after the Participant's Separation from Service or, iflater, after the Participant satisfies the
eligibility requirements for an early retirement pension.
(B) Ifthe present value ofthe Participant's early retirement pension exceeds $3,500, the Trustee
will pay the early retirement pension in the form and as of the date elected by the Participant. A
participant may elect to commence his early retirement pension as of the first day of any month
during the period he is eligible for the early retirement pension and after he has separated from
Service. If the Participant fails to designate a distribution date, then the Trustee will commence
payment of the early retirement pension in accordance witl1 Article X.
* * * * * * * * * * * * * * *
6.1
ARTICLE VII - DISABILITY PENSION
7.01 Disability Pension. The Plan does not provide a disability pension. Disability
benefits are provided under the Employer's long term disability program.
* * * * * * * * * * * * * * *
7.1
ARTICLE VIII - DEFERRED VESTED PENSION - DEATH BENEFIT
8.01 Deferred Vested Pension. A Participant who, prior to his Normal Retirement Date,
terminates employment for any reason other than death, or eligibility for an early retirement pension,
will receive a deferred vested pension (assuming the Accrued Benefit of such Participant is not
entirely forfeitable).
8.02 Amount of Deferred Vested Pension. The Participant's deferred vested pension is the
Actuarial Equivalent of his Nonforfeitable Accrued Benefit payable at Normal Retirement Date.
8.03 Payment of Deferred Vested Pension.
(A) If the present value ofthe Participant's deferred vested pension does not exceed $3,500, the
Trustee will automatically pay the deferred vested pension in lump sum, as soon as administratively
practicable following the Participant's Separation from Service. In no event may the distribution
occur later than the 60th day following the close of the Plan Year in which the Participant attains
Normal Retirement Age.
(B) If the present value of the Participant's deferred vested pension exceeds $3,500, the Trustee
will pay the deferred vested pension in the form elected by the Participant. A Participant may elect
to commence his deferred vested pension after the Participant's Normal Retirement Date. If the
Participant fails to elect a distribution date, then the Trustee will commence payment of the deferred
vested pension in accordance with Article X.
8.04 Pre-Retirement Death Benefit. If a Participant dies prior to commencement of
a normal retirement pension, deferred vested pension or early retirement pension, his Beneficiary
will receive a death benefit equal to the present value ofthe Participant's Nonforfeitable Accrued
Benefit. The Trustee will make payment, or commence payment, ofthe deceased Participant's death
benefit in accordance with Articles IX and X.
8.05 Vesting Schedule.
(A) 100% Vesting Upon Certain Events. A Participant's Accrued Benefit is 100% Nonforfeitable
upon and after his attaining Normal Retirement Age (if employed on or after that date). A
Participant's Accrued Benefit is 100% Nonforfeitable ifthe Participant's separation from Service is a
result of death, disability or eligibility for an early retirement pension.
(B) I 00% Vesting of Required Participant Contributions. Each Participant is immediately 100%
vested with respect to his Required Participant Contributions. A Participant is entitled to receive a
return of his Required Participant Contributions, contributed while a participant under the money
purchase plan prior to October I, 2000, upon termination of employment, together with simple
interest at a rate equal to the interest rate on 30-year Treasury securities as published in the Internal
Revenue Bulletin determined as ofthe calendar month preceding the first day ofthe Plan year, and
effective October 1, 2003, a rate equal to the U.S. Treasury Department long-term average rate
8.1
published on the last day ofthe calendar month preceding the first day of the Plan year, or such other
rate that maybe approved by the U.S. Treasury Department to replace the 30-yearTreasurybond fate
as a benchmark for calculating lump sum payouts from defined benefit plans, in lieu of any other
benefit under the Plan. The amount received as a distribution by the Participant shall be used to
reduce the accrued benefit, if any, at his normal retirement date. Required Participant contributions
contributed on and after October 1, 2000 are 100% vested and shall be included in the deferred
vested benefit payable to the Participant upon normal retirement date.
(C) Vesting Schedule. Subject to Section 8.05(A) and Section 8.05(B), a Participant's
Nonforfeitable percentage in his Accrued Benefit equals the percentage in the following schedule:
Years of Service
Nonforfeitable
Percentage
Less than 3 ......................................................... None
3 . . .. .. . . . .. .. . . . . . . . . .. . . . . . . .. .. . ... . ..... .. .. .. ..... . . . . . .. . . . .. .. . . ... 20%
4 ......................................................................... 40%
5 ........... ................................................... ...... ..... 600/0
6 .. .. ... ... .... .. . .. .. .. .. . . . .. .. .... . . .. .... .. .. . .. .. .. .. . .. .. .. .. .. .. ... 800/0
7 or more ............................................................1000/0
(D) Amendment to Vesting Schedule. Though the Employer reserves the right to amend the
vesting schedule at any time, the Retirement Committee will not apply the amended vesting schedule
to reduce the Nonforfeitable percentage of any Participant's Accrued Benefit derived from Employer
contributions (determined as of the later of the date the Employer adopts the amendment, or the date
the amendment becomes effective) to a percentage less than the Nonforfeitable percentage computed
under the Plan without regard to the amendment. An amended vesting schedule will apply to a
Participant only if the Participant receives credit for at least one Hour of Service after the new
schedule becomes effective.
If the Employer makes a permissible amendment to the vesting schedule, each Participant
having at least 3 Years of Service with the Employer may elect to have the percentage of his
Nonforfeitable Accrued Benefit computed under the Plan without regard to the amendment. The
Participant must file his election with the Retirement Committee within 60 days of the latest of (1)
the Employer's adoption of the amendment; (2) the effective date of the amendment; or (3) his
receipt of a copy of the amendment. The Retirement Committee, as soon as practicable, must
forward a true copy of any amendment to the vesting schedule to each affected Participant, together
with an explanation ofthe effect ofthe amendment, the appropri'ate form upon which the Participant
may make an election to remain under the vesting schedule provided under the Plan prior to the
amendment and notice of the time within which the Participant must make an election to remain
under the prior vesting schedule. The vesting schedule election does not apply to a Participant if the
amended vesting schedule provides for vesting at least as rapid at all times as the vesting schedule in
effect prior to the amendment.
(E) Forfeiture for Cause. The Plan does not permit a forfeiture for cause.
8.2
8.06 Year of Service - Vesting. For purposes of vesting under Section 8.05, Year of
Service means any Plan Year during which an Employee completes not less than 1,000 Hours of
Service. A Year of Service includes any Year of Service earned prior to the Effective Date of the
Plan, except as provided in Section 8.08. '
8.07 Break in Service - Vesting. For purposes of this Article VIII, a Participant incurs a
"Break in Service" if during any Plan Year he does not complete more than 500 Hours of Service
with the Employer.
8.08 Included Years of Service - Vesting. For purposes of determining "Years of Service"
under Section 8.06, the Plan takes into account all Years of Qualified Service credited to a
Participant pursuant to Section 5.02(B) and all Years of Service an Employee completes with the
Employer except:
(A) Any Year of Service completed before a Break in Service, unless the Employee completes a
YeaT of Service after the Break in Service. This Break in Service rule will not operate to recredit any
Year of Service disregarded under clause (B).
(B) Any Year of Service completed before a Break in Service if the number of the Participant's
consecutive Breaks in Service equals of exceeds the greater of 5 or the aggregate number of the
Years of Service prior to the Break. This Break in Service rule applies only if the Participant is 0%
vested in his Accrued Benefit derived from Employer contributions at the time he has a Break in
Service. Furthermore, the aggregate number of Years of Service before a Break in Service does not
include any Years of Service not required to be taken into account under this exception by reason of
any prior Break in Service. If the Retirement Committee Retirement Committee disregards the
Participant's Years of Service under this exception, the Plan forfeits his pre-Break in Service
Accrued Benefit.
(C) Any Year of Service before the Plan Year in which the P~rticipant attained the age of 18.
8.09 Disregard of Accrued Benefit.
(A) Cash-Out Distribution. If a partially-vested Participant receives a cash-out payment of his
entire Nonforfeitable Accrued Benefit, the Retirement Committee will disregard the Participant's
Accrued Benefit determined as of the date of the cash-out distribution. A partially-vested Participant
who is re-employed by the Employer after receiving a cash-out distribution has the right to repay the
Trustee the Employer derived portion of the cash-out distribution he received, provided his
repayment right has not expired. The Participant's repayment must include interest at the rate
determined under Code S411 (c )(2)(C) (or under a successor to that Code section), calculated from
the date of the cash-out distribution. A Participant's right to make repayment expires on the earlier
of: (1) the date 5 years after the Participant's first re-employment date with the Employer following
the cash-out distribution; or (2) the last day of the first Break in Service Period ending after the cash-
out distribution. A Break in Service Period is a period of 5 consecutive Plan Years in which the
Participant incurs a Break in Service.
8.3
(B) Restoration of Accrued Benefit. If, prior to the expiration of the repayment period, a
re-employed Participant makes repayment in accordance with the terms of this Section 8.09, the
Retirement Committee will restore the Participant's Accrued Benefit disregarded under this Section
8.09.
(C) 0% Vested Participant. A 0% vested Participant is a Participant whose Accrued Benefit is
entirely forfeitable at the time of his Separation from Service. Under the deemed cash-out rule, the
Retirement Committee will treat the 0% vested Participant as having received a cash-out distribution
on the date of the Participant's Separation from Service. For purposes of applying the restoration
provisions of this Section 8.09, the Retirement Committee will treat the 0% vested Participant as
repaying his cash-out "distribution" (plus the required interest) on the first date of his re-employment
with the Employer.
* '* * * * * * * * * * * * * *
8.4
ARTICLE IX - PRERETIREMENT SURVIVOR ANNUITY
9.01 Preretirement Survivor Annuity - Eligibility. Ifa married Participant dies prior to his
annuity starting date, the Retirement Committee will direct the Trustee to distribute to the
Participant's surviving spouse a preretirement survivor annuity, unless the Participant has a valid
waiver election (as described in Section 9.02) in effect, or unless the Participant and his spouse were
not married throughout the one year period ending on the date of his death.
(A) Preretirement Survivor Annuity - Defined. A preretirement survivor annuity is a straight life
annuity, payable no less frequently than annually, for the life of the surviving spouse.
(B) Present Value Not Greater Than $3,500. If the present value of the preretirement survivor
annuity is not greater than $3,500, the Trustee will automatically make the distribution in a lump
sum, in lieu of the preretirement survivor annuity. The distribution must occur on or before the
annuity starting date.
, (C) Surviving Spouse Elections. If the present value of the preretirement survivor annuity
exceeds $3,500, the Participant's surviving spouse may elect to have the Trustee commence payment
of the preretirement survivor annuity as of the first day of any month following the Participant's
death, but not later than the applicable mandatory distribution period described in Article X. A
surviving spouse also may elect any form of payment described in Article X, in lieu of the
preretirement survivor annuity (other than a joint and survivor annuity). In the absence of an election
by the surviving spouse, the Retirement Committee will direct the Trustee to distribute the
preretirement survivor annuity as soon as administratively practicable following the close of the Plan
Year in which the latest of the following events occurs: (1) the Participant's death; (2) the date the
Retirement Committee receives notification of or otherwise confirms the Participant's death; or (3)
the date the Participant would have attained Normal Retirement Age.
(D) Special Rules. If the Participant's surviving spouse dies prior to the commencement of the
preretirement survivor annuity, the Plan will not pay the preretirement survivor annuity and the
Retirement Committee will determirie the Participant's death benefit pursuant to Section 8.04.
9.02 Waiver Election - Preretirement Survivor Annuity.
(A) Explanation of Waiver. The Retirement Committee must provide a written explanation of
the preretirement survivor annuity to each married Participant, within the following period which
ends last: (1) the period beginning on the first day of the Plan Year in which the Participant attains
age 32 and ending on the last day ofthe Plan Year in which the Participant attains age 34; or (2) a
reasonable period after an Employee becomes a Participant. A reasonable period described in clause
(2) is the period beginning one year before and ending one year after the Employee becomes a
Participant. lfthe Participant separates from Service before attaining age 35, clauses (1) and (2) do
not apply and the Retirement Committee must provide the written explanation within the period
beginning one year before and ending one year after the separation from Service. The written
explanation must describe, in a manner consistent with Treasury regulations, the terms and
conditions of the preretirement survivor annuity comparable to the explanation of the qualified joint
9.1
and survivor annuity required under Article X. The Plan does not limit the number of times the
Participant may revoke a waiver ofthe preretirement survivor annuity or make a new waiver during
the election period.
(B) Waiver Requirements. A Participant's waiver election of the preretirement survivor annuity
is not valid unless (1) the Participant makes the waiver election no earlier than the first day of the
Plan Year in which he attains age 35 and (2) the Participant's spouse (to whom the preretirement
survivor annuity is payable) satisfies the consent requirements described in Article X, except the
spouse need not consent to the form of benefit payable to the designated Beneficiary. The spouse's
consent to the waiver of the preretirement survivor annuity is irrevocable, unless the Participant
revokes the waiver election. Irrespective ofthe time of election requirement described in clause (1),
ifthe Participant separates from Service prior to the first day of the Plan Year in which he attains age
35, the Retirement Committee will accept a waiver election as respects the Participant's Accrued
Benefit attributable to his Service prior to his separation from Service. Furthermore, if a Participant
who has not separated from Service makes a valid waiver election, except for the timing requirement
of clause (1), the Retirement Committee will accept that election as valid, but only until the first day
of the Plan Year in which the Participant attains age 35. A waiver election described in this
paragraph is not valid unless made after the Participant has received the written explanation
described in this Section 9.02.
9.03 Reduction of Pension Benefits. The Trustee will not reduce a Participant's pension
benefits as a result of the preretirement survivor annuity coverage required under Section 9.01. The
Employer alone bears the cost of providing the preretirement survivor annuity.
* * * * * * * * * * * * * * *
9.2
ARTICLE X - PAYMENT OF ACCRUED BENEFIT -
OPTIONAL FORMS OF PAYMENT
10.01 Form of Benefit. Subject to the requirements of Section 10.02, the Retirement
Committee will direct the Trustee to pay a Participant his Nonforfeitable Accrued Benefit in a form
permitted under Section 10.05. Annuity payments will continue until the last scheduled payment
coincident with or immediately preceding the date ofthe Participant's death or, if applicable, the date
of his survivor's death.
(A) Consent. A Participant must consent, in writing, to any distribution described in this Article
X if the present value of the Participant's Nonforfeitable Accrued Benefit exceeds $3,500, and the
distribution commences prior to the Participant's attaining Normal Retirement Age. Furthermore, the
Participant's spouse also must consent, in writing, to any distribution for which Section 10.02
requires the spouse's consent. For purposes of the consent requirements under this Article X, ifthe
present value of the Participant's Nonforfeitable Accrued Benefit, at the time of any distribution,
exceeds $3,500, the Retirement Committee will treat that present value as exceeding $3,500 for
purposes of all subsequent Plan distributions to the Participant. .
(B) Annuity starting dateldistribution date. The term "annuity starting date" means: (1) the first
day of the first period for which the Plan pays an amount as an annuity; or (2) for a distribution in
any other form, the date of the distribution~ A distribution date is the date as of which the Plan
requires distribution or as of the date which the Participant (or Beneficiary) may elect to commence
distribution.
(C) Direct Rollover of Eligible Rollover Distribution. For distributions made after December 31,
1992, a Participant may elect, at the time and in the manner prescribed by the Retirement Committee,
to have any portion of his eligible rollover distribution paid directly to an eligible retirement plan
specified by the Participant in a direct rollover designation. For purposes of this Section 10.01 (C), a
. Participant includes a Participant's surviving spouse and the Participant's spouse or former spouse
who is an alternate payee under a qualified domestic relations order.
The following definitions apply to this Section 10.01 (C):
(1) Eligible rollover distribution. An eligible rollover distribution is any distribution of
all or any portion of the balance to the credit of the Participant, except an eligible rollover
distribution does not include: any distribution which is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (orJife expectancy) of the Participant
or the joint lives (or joint life expectancies) of the Participant and the Participant's designated
beneficiary, or for a specified period of ten years or more; any distribution to the extent required
under Code S40 1 (a)(9); and the portion of any distribution which is not includible in gross income
(determined without regard to the exclusion of net unrealized appreciation with respect to employer
securities).
10.1
(2) Eligible retirement plan. An eligible retirement plan is an individual retirement
account described in Code S408( a), an individual retirement annuity described in Code S40 I (b), an
annuity plan described in Code s403(a), or a qualified trust described in Code s401(a), which
accepts the Participant's eligible rollover distribution. However, in the case of an eligible rollover
distribution to the surviving spouse, an eligible retirement plan is an individual retirement account or
individual retirement annuity.
(3) Direct rollover. A direct rollover is a payment by the Plan to the eligible retirement
plan specified by the distributee.
10.02 Qualified Joint and Survivor Annuity.
(A) Payment of Annuity Form. The Retirement Committee must direct the Trustee to distribute a
married or unmarried Participant's Nonforfeitable Accrued Benefit in the form of a qualified joint
and survivor annuity, unless the Participant makes a valid waiver election (described in Section
10.04) prior to the annuity starting date. If, as ofthe annuity starting date, the Participant is married,
a qualified joint and survivor annuity is an immediate annuity payable for the life of the Participant
and a survivor annuity payable for the remaining life of the Participant's surviving spouse which is
50% of the amount of the, annuity payable during the life of the Participant. If, as of the annuity
starting date, the Participant is not married, a qualified joint and survivor annuity is an immediate life
annuity for the Participant. The qualified joint and survivor annuity will be the Actuarial Equivalent
of the Participant's Nonforfeitable Accrued Benefit and will provide monthly payments. The
Participant may elect to have annuity payments less frequently than monthly, but not less frequently
than annually.
(B) Present Value Not Greater Than $3,500. If the present value of the Participant's Accrued
Benefit is not greater than $3,500, the Trustee will automatically pay the Participant's pension in a
lump sum, in lieu of a qualified joint and survivor annuity. The distribution must occur on or before
the annuity starting date. The consent requirements of this Article X do not apply to a Participant
subject to this paragraph.
10.03 Commencement of Benefits. The Retirement Committee must direct the Trustee to
commence distribution of benefits in accordance with this Section 10.03, subject to the mandatory
distribution requirements of Section 10.06.
(A) Distribution to Participant Who Separates from Service Before Normal Retirement Date. The
Retirement Committee will direct the Trustee to commence distribution of the Participant's
Nonforfeitable Accrued Benefit in accordance with Article VI, VII or VIII, whichever applies.
(B) Distribution to Participant Who Separates from Service After Normal Retirement Date. The
Retirement Committee will direct the Trustee to commence distribution to the Participant:
(1) Present Value of Normal Retirement Pension Not Exceeding $3,500. In lump sum, as
soon as administratively practicable following the Participant's separation from Service, but
10.2
not later than the 60th day following the close ofthe Plan Year in which that separation from
Service occurs.
(2) Present Value of Nanna 1 Retirement Pension Exceeds $3,500. In the fonn and at the
time elected by the Participant, as pennitted under this Article X. The Participant may elect
to commence distribution as soon as administratively practicable following separation from
Service or as of the first day of any subsequent month.
(C) Failure of Participant To Make an Election. Where the Participant has the right to elect the
fonn and timing of his pension, but has failed to make an election, the Retirement Committee will
direct the Trustee to commence distribution of the Participant's pension, in the fonn prescribed by
Section 10.02, as soon as administratively practicable following the later of: (I) the Participant's
attainment ofNonnal Retirement Age; or (2) the Participant's separation from Service. If, pursuant
to the Plan, the latest distribution date available to the Participant occurs earlier than the mandatory
distribution date described.in this Section 10.03(C), the Retirement Committee will satisfy this
distribution requirement by purchasing, as soon as administratively practicable after the latest
applicable distribution date, a deferred Nontransferable Annuity which will commence the
Participant's pension at the mandatory distribution date.
(D) Notice to Participant. At least 30 days before the Participant's annuity starting date, the
Retirement Committee must provide a benefit notice to a Participant who is eligible to make a
distribution election under the Plan. The benefit notice must explain the optional fonns of benefit in
the Plan, including the material features and relative values of those options, and the Participant's
right to defer distribution until he attains Nonnal Retirement Age.
(E) Death of the Participant. If the Participant had commenced distribution prior to his death, the
Retirement Committee will direct the Trustee to make distribution to the Participant's Beneficiary in
accordance with the distribution method in effect at the time of death. If the deceased Participant
had not commenced distribution, the Retirement Committee will direct the Trustee to distribute the
Participant's death benefit in accordance with paragraph (1) or paragraph (2), whichever applies,
subject to the requirements of Article IX.
(1) Present Value of Death Benefit Does Not Exceed $3,500. In lump sum, as soon as
administratively practicable following the date on which the Retirement Committee receives
notification of or otherwise confinns the Participant's death.
(2) Present Value of Death Benefit Exceeds $3,500. In the form and at the time elected
by the Participant or, if applicable by the Beneficiary, as pennitted under this Article X.
Unless otherwise elected by the Participant and to the extent permitted under Section 10.06, a
Beneficiary may elect to commence distribution of the Participant's death benefit as of the
first day of any month following the date the Retirement Committee receives notification of
or otherwise confinns the Participant's death. In addition to the other fonns of distribution
available under this Article X, and to the extent permitted under Section 10.06, a Beneficiary
may elect to receive the Participant's death benefit in monthly, quarterly or annual
10.3
installments over a 5 year period, unless the Participant elected otherwise. In the absence of
an election, the Retirement Committee will direct the Trustee to distribute the Participant's
death benefit in five annual installment payments commencing as soon as administratively
practicable following the end of the Plan Year that the Retirement Committee receives
notification of or otherwise confirms the Participant's death.
10.04 Waiver Election - Qualified Joint and Survivor Annuity.
(A) Explanation of Waiver. At least 30 days before the Participant's annuity starting date, the
Retirement Committee must provide the Participant a written explanation of the terms and conditions
of the qualified joint and survivor annuity, the Participant's right to make, and the effect of, an
election to waive the joint and survivor form of benefit, the rights of the Participant's spouse
regarding the waiver election and the Participant's right to make, and the effect of, a revocation of a
waiver election. The Plan does not limit the number oftimes the Participant may revoke a waiver of
the qualified joint and survivor annuity or make a new waiver during the election period.
(B) Waiver Requirements. A married Participant's waiver election is not valid unless (1) the
Participant's spouse (to whom the survivor annuity is payable under the qualified joint and survivor
annuity), after the Participant has received the written explanation described in this Section, has
consented in writing to the waiver election, the spouse's consent acknowledges the effect of the
election, and a notary public or the Plan Administrator (or his representative) witnesses the spouse's
consent, (2) the spouse consents, to the alternate form of payment designated by the Participant or to
any change in that designated form of payment, and (3) unless the spouse is the Participant's sole
primary Beneficiary, the spouse consents to the Participant's Beneficiary designation or to any
change in the Participant's Beneficiary designation. The spouse's consent to a waiver of the qualified
joint and survivor annuity is irrevocable unless the Participant revokes the waiver election. The
spouse may execute a blanket consent to any form of payment designation or to any Beneficiary
designation made by the Participant, if the spouse acknowledges the right to limit that consent to a
specific designation but, in writing, waives that right.
The Retirement Committee may accept as valid a waiver election which does not satisfy the
spousal consent requirements ifthe Retirement Committee establishes the Participant does not have
a spouse, the Retirement Committee is not able to locate the Participant's spouse, the Participant is
legally separated or has been abandoned (within the meaning of State law) and the Participant has a
court order to that effect, or other circumstances exist under which the Secretary of the Treasury will
excuse the consent requirement. Ifthe Participant's spouse is legally incompetent to give consent,
the spouse's legal guardian (even ifthe guardian is the Participant) may give consent.
10.05 Optional Forms of Distribution. The Retirement Committee will direct the Trustee to
pay the Participant's Nonforfeitable Accrued Benefit, as elected by the Participant or, if applicable,
by the Beneficiary, under one of the optional forms of distribution permitted under this Section
10.05, subject to the annuity distribution requirements of Section 10.02. The Beneficiary's election,
except as required by Article IX, is subject to any restrictions designated in writing by the Participant
and not revoked as of his date of death.
10.4
(A) Actuarial Equivalent Optional Forms. Any form of payment under this Section 10.05(A)
must satisfy the mandatory distribution requirements of Section 10.06 and must be the Actuarial
Equivalent of the Participant's Nonforfeitable Accrued Benefit.
The optional forms of distribution are:
(I) Installments. Payment in monthly, quarterly or annual installments over the life
expectancy of the Participant, or the joint life and last survivor expectancy ofthe Participant
and his designated Beneficiary.
(2) Life Annuity. A straight life annuity, payable no less frequently than annually, with
payment of the Participant's Accrued Benefit ending on the Participant's death.
(3) Life AnImity with Term Certain. A life annuity, payable no less frequently than
annually, with a term certain guaranteed. The. term certain cannot exceed the Participant's
life expectancy, or the joint life and last survivor expectancy of the Participant and his
designated Beneficiary. If a Participant dies before the Trustee has made the guaranteed
number of payments, the Trustee will continue the balance of the payments to the
Participant's designated Beneficiary.
(4) Joint and Survivor Annuity. A joint life annuity payable for the life of the
Participant, with a survivor annuity payable for the remaining life of a designated Beneficiary
which is a specified percentage (either 75% or 100%) of the annuity payable during the
Participant's life.
10.06 Mandatory Distributions.
(A) Required Beginning Date. If any distribution commencement date described under the Plan,
either by Plan provision or by Participant election (or nonelection), is later than -the Participant's
Required Beginning Date, the Retirement Committee instead must direct the Trustee to make
distribution to the Participant on the Participant's Required Beginning Date. A Participant's Required
Beginning Date is the April 1 following the close of the calendar year in which the Participant attains
age 70Y2 or, if later, April I following the close of the calendar year in which the Participant
separates from Service. A mandatory distribution at the Participant's Required Beginning Date will
be in the form of distribution required under Section 10.02 unless the Participant, pursuant to the
provisions of this Article X, makes a valid election to receive an alternative form of payment.
(B) Minimum Distribution Requirements for Participants. The Retirement Committee may not
direct the Trustee to distribute the Participant's Nonforfeitable Accrued Benefit, nor may the
Participant elect to have the Trustee distribute his Nonforfeitable Accrued Benefit, under a method of
payment which, as of the Required Beginning Date, does not satisfy the minimum distribution
requirements under Code ~401(a)(9) and the applicable Treasury regulations.
10.5
(1) Minimum distribution for annuity distribution. An annuity distribution made to the
Participant to satisfy the minimum distribution requirements must meet all of the following
requirements:
(a) The periodic payment intervals under the annuity may not be longer than one
year.
(b) The distribution period must not exceed the life (or joint lives) of the
Participant and his designated Beneficiary (as determined under Article XIV, subject
to the requirements of the Code g401 (a)(9) regulations), or a period certain not longer
than the life expectancy (or joint life expectancy) or the Participant and his
designated Beneficiary.
(c) The annuity does not recalculate life expectancy.
(d) The Participant or Beneficiary may not lengthen the period certain, if
applicable, even ifthe period certain is shorter than the maximum period permitted
under Code g401(a)(9).
(e) The payments are nonincreasing or increase only under the following
circumstances: (i) with any percentage increase in a specified and generally
recognized cost-of-living index; (ii) to take into account the reduction to the amount
of the participant's payments to provide a survivor benefit, but only upon the death of
the Beneficiary on whose life the annuity determines the survivor distribution period
and if the payments continue over the life of the Participant; (iii) to provide cash
refunds of Employee contributions upon the Participant's death; or (iv) because of an
increase in benefits under the Plan.
(f) If the annuity is a life annuity (or a life annuity with a period certain not
exceeding 20 years) the minimum distribution required by the Participant's Required
Beginning Date is one payment interval. Subsequent minimum distributions are the
payment intervals determined under the annuity, even ifthe second payment interval
occurs in the calendar year following the year in which the Required Beginning Date
occurs.
(g) If the annuity provides a period certain without a life contingency, or if a life
annuity with a period certain exceeding 20 years, the minimum distribution for each
calendar year subject to this Section 10.06, is the annual amount, determined by
totaling the periodic payments for a calendar year. The minimum distribution due by
the Participant's Required Beginning Date is the annual amount for the calendar year
preceding that Required Beginning Date. The minimum distribution for the calendar
year which includes the Required Beginning Date and for all subsequent calendar
years is the annual amount for that calendar year and the annuity must pay that
minimum distribution no later than December 31 of that calendar year.
10.6
(2) Minimum Distribution Incidental Death Benefit ("MDIB"). Ifthe Participant's spouse
is not his designated Beneficiary, an annuity must satisfy the MDIB requirements of this
paragraph. If the annuity provides a period certain without a life contingency, the period
certain in effect as of the first distribution calendar year may not exceed the applicable period
determined under the maximum period certain table set forth in Treas. Reg. S 1.401(a)(9)-2.
If the annuity with a life contingency includes a period certain, the period certain at any time
on or after the Participant's Required Beginning Date also may not exceed the maximum
period certain determined under the table described in the immediately preceding sentence.
If the annuity is ajoint and survivor annuity payable for the joint lives of the Participant and
a nonspouse Beneficiary, the survivor percentage in effect at any time on or after the
Participant's Required Beginning Date may not exceed the percentage determined under the
applicable percentage table set forth in Treas. Reg. s1.401(a)(9)-2. A joint and survivor
annuity under which the survivor percentage does not exceed 52% always satisfies this
paragraph. A life annuity payable to the Participant, without any period certain, is not subject
to the MDIBrequirements of this paragraph. .
(3) Additional Accruals. Benefits accruing, to the Participant after his Required
Beginning Date constitute a separate component of an annuity distribution, beginning with
the first payment interval ending in the calendar year immediately following the calendar
year in which such amount accrues. The annuity starting date and form of distribution
commenced by the Required Beginning Date applies to the distribution of these additional
accruals, unless the Participant elects otherwise pursuant to his benefit options 'under the
Plan, and that election otherwise complies with these minimum distribution requirements.
An additional accrual includes any portion of the Participant's Accrued Benefit which
becomes Nonforfeitable during the applicable calendar year.
(4) Nonannuity Distributions. If the Participant elects an installment distribution directly
from the Trust, under which the method of payment is in the form of an individual account
distribution, the distribution method must satisfy the minimum distribution requirements
which apply to individual accounts, including the MDIB requirements which apply to
individual accounts, as determined under Code ~40 I (a)(9) and the applicable regulations. A
lump sum distribution made on or before a Participant's Required Beginning Date of his
entire Nonforfeitable Accrued Benefit under the Plan satisfies the minimum distribution
requirements. Furthermore, a lump sum payment of additional accruals, as described in the
immediately preceding paragraph, no later than the end of the first payment interval ending in
the calendar year immediately following the calendar year in which such amount accrues,
satisfies the minimum distribution requirements.
(C) Minimum Distribution Requirement for Beneficiaries. The method of distribution to the
Participant's Beneficiary must satisfy Code s401(a)(9) and the applicable Treasury regulations.
(I) , Death After the Required Beginning Date. If the Participant's death occurs after his
Required Beginning Date or, if earlier, the date the Participant commences an irrevocable
annuity, the method of payment to the Beneficiary must provide for completion of payment
10.7
over a period which does not exceed the payment period which had commenced for the
Participant.
(2) Death Before the Required Beginning Date. If the Participant's death occurs prior to
his Required Beginning Date, and the Participant has not commenced an irrevocable annuity,
the method of payment to the Beneficiary must provide for completion of payment over a
period not exceeding:
(a) 5 years after the date ofthe Participant's death (with payments completed by
December 31 of the calendar year in which occurs the 5th anniversary of the
Participant's date of death); or
(b) if the Beneficiary is a designated Beneficiary, over the designated
Beneficiary's life or life expectancy.
The Retirement Committee will not direct payment over a period described in clause (b)
unless the Trustee will commence payment to the designated Beneficiary no later than the
December 31 following the close of the calendar year in which the Participant's death occurred or, if
later, and the designated Beneficiary is the Participant's surviving spouse, the December 31 of the
calendar year in which the Participant would have attained age 70Y2. The Retirement Committee
must use the unisex life expectancy multiples under Treas. Reg. S 1.72-9 for purposes of applying this
paragraph. An annuity distribution to the designated Beneficiary, whether directly from the Trust or
in the form of a Nontransferable Annuity Contract, satisfies clause (b) if the annuity satisfies the
minimum distribution requirements of Section 10.06(B), but applying paragraphs (f) and (g) of
Section 1O.06(B)(1) as follows: (i) the distribution calendar years applicable to the designated
Beneficiary are the calendar year in which benefits must commence under clause (b) ofthis Section
1 0.06(C)(2) and all subsequent calendar years; and (ii) the first payment interval under paragraph (f)
is due by the December 31 described in this Section 10.06(C)(2). A lump sum distribution to the
Beneficiary made no later than the date described in clause (a) of this Section 10.06(C)(2) satisfies
these minimum distribution requirements.
In the case of a nonannuity distribution to a designated Beneficiary, the Plan satisfies the
requirement of this Section 10.06(C) if the distribution method satisfies the minimum distribution
requirements applicable to individual accounts, as determined under Code s401(a)(9) and the
applicable regulations, and the first minimum distribution occurs no later than the December 31
described in clause (2)(b) ofthis Section 10.06(C). The Retirement Committee will apply the post-
death minimum distribution rules by treating any amount paid to the Participant's child, which
becomes payable to the Participant's surviving spouse upon the child's attaining the age of majority,
as paid to the Participant's surviving spouse.
(D) Special Rules. The Retirement Committee, only upon the Participant's written request or, in
the case of a distribution described in Section 10.06(C), only upon the written request of the
Participant's spouse, will recalculate the applicable life expectancy period for purposes of calculating
the minimum distribution applicable to a distribution calendar year following the first distribution
10.8
calendar year. The Participant must make a recalculation election not later than his Required
Beginning Date. A surviving spouse must make a recalculation election no later than the December
31 date described in Section 10.06(C)(2). A recalculation election applicable to a joint life
expectancy payment, where the survivor is a nonspouse Beneficiary, may not take into account any
adjustment to any life expectancy other than the Participant's life expectancy, as prescribed by the
applicable regulations under Code 9401 (a )(9). In the absence of a recalculation election, the Plan
does not permit recalculation of the applicabl~ life expectancy factor.
10.07 Distributions Under Domestic Relations Orders. Nothing contained in this Plan will
prevent the Trustee, in accordance with the direction of the Retirement Committee, from complying
with the provisions of a qualified domestic relations order (as defined in Code 9414(p)). The
Retirement Committee may adopt any written procedures relating to a qualified domestic relations
order which the Retirement Committee deems necessary for proper administration ofthe Plan. The
Plan does not permit distribution to an alternate payee under a qualified domestic relations order
until the Participant attains his earliest retirement age (as defined under Code 9414(p)) under the
Plan. Nothing in this Section 10.07 permits a Participant a right to receive distribution at a time
otherwise not permitted under the Plan nor does it permit the alternate payee to receive a form of
payment not permitted under the Plan.
For purposes of applying Articles IX and X, the Retirement Committee will treat a former
spouse as the Participant's spouse or surviving spouse to the extent provided under a qualified
domestic relations order. The survivor annuity requirements of Article IX and the joint and survivor
annuity requirements of Article X apply separately to the portion of the Participant's Nonforfeitable
Accrued Benefit subject to the qualified domestic relations order and to the portion of the
Participant's Nonforfeitable Accrued Benefit not subject to that order.
The Retirement Committee must establish reasonable procedures to determine the qualified
status of a domestic relations order. Upon receiving a domestic relations order, the Retirement
Committee promptly will notify the Participant and any alternate payee named in the order, in
writing, of the receipt of the order and the Plan's procedures for determining the qualified status of
the order. Within a reasonable period of time after receiving the domestic relations order, the
Retirement Committee must determine the qualified status of the order and must notify the
Participant and each alternate payee, in writing, of its determination. The Retirement Committee
must provide notice under this paragraph by mailing to the individual's address specified in the
domestic relations order, or in a manner consistent with applicable law.
If any portion ofthe Participant's Nonforfeitable Accrued Benefit is payable during the period
the Retirement Committee is making its determination of the qualified status of the domestic
relations order, the Retirement Committee must make a separate accounting of the amounts payable.
Ifthe Retirement Committee determines the order is a qualified domestic relations order within 18
months of the date amounts first are payable following receipt of the order, the Retirement
Committee will direct the Trustee to distribute the payable amounts in accordance with the order. If
the Retirement Committee does not make its determination of the qualified status of the, order within
the 18-month determination period, the Retirement Committee will direct the Trustee to distribute
10.9
the payable amounts in the manner the Plan would distribute ifthe order did not exist and will apply
the order prospectively if the Retirement Committee later determines the order is a qualified
domestic relations order.
The Trustee will make any payments or distributions required under this Section 10.07 by
separate benefit checks or other separate distribution to the alternate payee.
* * * * * * * * * * * * * * *
10.10
ARTICLE Xl - MISCELLANEOUS PROVISIONS AFFECTING
THE PAYMENT OF BENEFITS
11.01 General. In general, the Trustee will make payment of any pension directly to the
Participant entitled to the payment. However, the Retirement Committee may instruct the Trustee to
purchase a Nontransferable Annuity contract from an insurance company. The Nontransferable
Annuity contract must provide pension and other benefits in an amount not less than the pension and
other benefits a Participant would receive under this Plan and otherwise must comply with the
requirements of this Plan. In the event the Trustee purchases a Nontransferable Annuity contract for
the benefit of a Participant, the Trustee either may assign the contract to the Participant or hold the
contract for the benefit of the Participant pursuant to the instructions of the Retirement Committee.
The Trustee also may purchase a Nontransferable Annuity contract for the benefit of a designated
Beneficiary, surviving spouse or alternate payee under a qualified domestic relations order (as
defined in Code ~414(p)) entitled to distribution of all or a portion of the Participant's Nonforfeitable
Accrued Benefit.
11.02 N onduplication of Benefits. In the event the Trustee distributes any part or all of a
Participant's Accrued Benefit to him and the Participant later resumes active employment with the
Employer, the Trustee will compute the Participant's Accrued Benefit by taking into account all of
the Participant's Years of Accrual Service. However, the Trustee will offset the Participant's Accrued
Benefit so computed by the Participant's Accrued Benefit attributable to any distribution the Trustee
has made to the Participant (other than a cash-out distribution described in Article VIII). If the
distribution was a cash-out distribution, as described in Article VIII, the Trustee will offset the
Participant's Accrued Benefit by the Accrued Benefit disregarded under Section 8.09.
11.03 [Reserved].
11.04 No Disregard of Service. For purposes of computing Years of Service under Article
VIII, the Plan does not disregard Years of Service with respect to which a Participant has received a
distribution of his Accrued Benefit.
11.05 MergerlDirect Transfers. The Trustee will not consent to, or be a party to, any merger
or consolidation with another plan, or to a transfer of assets or liabilities to another plan, unless
immediately after the merger, consolidation or transfer, the surviving Plan provides each Participant
a benefit equal to or greater than the benefit each Participant would have received had the Plan
terminated immediately before the merger or consolidation or transfer. The Trustee possesses the
specific authority to enter into merger agreements or direct transfer of assets agreements with the
trustees of other retirement plans described in Code ~40 1 (a), and to accept the direct transfer of plan
assets, or to transfer plan assets, as a party to any such agreement. If the Trustee accepts a transfer of
assets from other retirement plans described in Code ~401(a) (other than the Money Purchase Plan)
on behalf of a Participant, the Trustee shall utilize such assets to provide additional Accrued Benefits
for such Participant. The Trustee possesses the specific authority to accept a transfer of assets of all
or any portion of a Participant's account in the Money Purchase Plan.
11.1
The Trustee may accept a direct transfer of plan assets on behalf of an Employee prior to the
date the Employee satisfies the Plan's eligibility conditions. If the Trustee accepts such a direct
transfer of plan assets, the Retirement Committee and Trustee will treat the Employee as a
Participant for all purposes ofthe Plan except the Employee will not accrue benefits until he actually
becomes a Participant in the Plan. Ifthe Employee terminates employment with the Employer prior
to becoming a Participant, the Trustee will distribute his transferred assets to him as if they were
Employer-derived Accrued Benefits.
* * * * * * * * * * * * * * *
11.2
ARTICLE XII - OTHER PROVISIONS AFFECTING BENEFITS
12.01 Assignment or Alienation. Subject to Code S414(p) (relating to qualified domestic
relations orders), neither a Participant nor a Beneficiary may anticipate assign or alienate (either at
law or in equity) any benefit provided under the Plan, and the Trustee will not recognize any such
anticipation, assignment or alienation. Furthermore, a benefit under the Plan is not subjeCt to
attachment, garnishment, levy, execution or other legal or equitable process.
12.02 [Reserved]
12.03 [Reserved]
12.04 Distribution Upon Termination of Trust. If the Employer terminates the Plan, the
Trustee will determine the value of the Trust Fund as of the business day next following the date of
such termination.
(A) Allocation of Assets. Upon termination of-the Plan, the Retirement Committee shall direct
the Trustee to allocate the assets of the Plan in a nondiscriminatory manner and in accordance with
all applicable regulations. Any residual assets remaining after satisfaction of all benefit liabilities
shall be distributed in accordance with Section 12.05.
12.05 Overfunding. If the Employer has overfunded the Plan at the time it terminates the
Plan, the Trustee must return the amount by which the Employer has overfunded the Plan to the
Employer, except to the extent the Plan allocates surplus assets to the Participants pursuant to written
procedures (including any necessary Plan amendments) adopted by the Employer incident to the
Plan's termination. The Employer must state by written request to the Trustee the amount of the
overfunding it wishes the Trustee to return to it after satisfying all liabilities under the terminated
flan. -
* * * * * * * * * * * * * * *
12.1
ARTICLE XIII - EMPLOYER ADMINISTRATIVE PROVISIONS
13.01 Information to Committee. The Employer must supply current information to the
Retirement Committee as to the name, date of birth, date of employment, annual compensation,
leaves of absence, Years of Service and date of termination of employment of each Employee who is,
or who will be eligible to become, a Participant under the Plan, together with any other information
which the Retirement Committee considers necessary. The Employer's records as to the current
information the Employer furnishes to the Retirement Committee are conclusive as to all persons.
13.02 No Liability. The Employer assumes no obligation or responsibility to any of its
Employees, Participants or Beneficiaries for any act of, or failure to act, on the part of its Retirement
Committee (unless the Employer is the Retirement Committee), the Trustee or the Plan
Administrator (unless the Employer is the Plan Administrator).
13.03 Indemnity of Plan Administrator and Committee. To the extent permitted under
applicable law, the Employer indemnifies and saves harmless the Plan Administrator, the members
of the Retirement Committee, and the Trustee, and each ofthem, from and against any and all loss
resulting from liability to which the Plan Administrator, the Retirement Committee, or the members
of the Retirement Committee and the Trustee may be subjected by reason of any act or conduct
(except willful misconduct or gross negligence) in their official capacities in the administration of
this Trust or Plan or both, including all expenses reasonably incurred in their defense, in case the
Employer fails to provide such defense.
* * * * * * * * * * * * * * *
13.1
ARTICLE XIV - PARTICIPANT ADMINISTRATIVE PROVISIONS
14.01 Beneficiary Designation. Any Participant may from time to time designate, in
writing, any person or persons, contingently or successively, to whom the Trustee will pay any
applicable death benefits under the Plan and the Participant may designate the form and method of
payment. The Retirement Committee will prescribe the form for the written designation of
Beneficiary and, upon the Participant's filing the form with the Retirement Committee, the form
effectively revokes all designations filed prior to that date by the same Participant. In the absence of
spousal consent (as required by Articles IX and X) to the Participant's Beneficiary designation, any
waiver of the qualified joint and survivor annuity or of the preretirement survivor annuity is not
valid.
14.02 No Beneficiary Designation/Death of Beneficiary. If a Participant fails to name a
Beneficiary in accordance with Section 14.01, or if the Beneficiary named by'a Participant
predeceases him, then the Trustee will pay the death benefit in accordance with Article X in the
following order of priority to:
(a) The Participant's surviving spouse;
(b) The Participant's surviving children, including adopted children, in equal shares;
(c) The Participant's surviving parents, in equal shares; or
(d) The legal representative of the Participant's estate.
If the Beneficiary does not predecease the Participant, but dies prior to distribution of his
share of the Participant's entire death benefit, the Trustee will pay the remaining death benefit to the
Beneficiary's estate unless the Participant's Beneficiary designation provides otherwise. The
Retirement Committee will direct the Trustee as to the method and to whom the Trustee will make
payment under this Section 14.02.
14.03 Personal Data to Committee. Each Participant and each Beneficiary of a deceased
Participant must furnish to the Retirement Committee such evidence, data or information as the
Retirement Committee considers necessary or desirable for the purpose of administering the Plan.
The provisions of this Plan are effective for the benefit of each Participant upon the condition
precedent that each Participant will furnish promptly full, true and complete evidence, data and
information when requested by the Retirement Committee, provided the Retirement Committee
advises each Participant of the effect of his failure to comply with its request.
14.04 Address for Notification. Each Participant and each Beneficiary of a deceased
Participant must file with the Retirement Committee from time to time, in writing, his post office
address and any change of post office address. Any communication, statement or notice addressed to
a Participant, or Beneficiary, at his last post office address filed with the Retirement Committee, or
as shown on the records of the Employer, binds the Participant, or Beneficiary, for all purposes of
this Plan.
14.1
14.05 Notice of Change in Terms. The Plan Administrator, within the time prescribed by
applicable law, must furnish all Participants and Beneficiaries a summary plan description and all
other information required by applicable law.
14.06 Litigation Against the Trust. A court of competent jurisdiction may authorize any
appropriate equitable relief to enforce any provisions of applicable law or the terms ofthe Plan. A
fiduciary may receive reimbursement of expenses properly and actually incurred in the performance
of his duties with the Plan.
14.07 Information Available. Any Participant in the Plan or any Beneficiary may examine
copies ofthe plan description, this Plan and Trust, or any other instrument under which the Plan was
established or is operated. The Plan Administrator will maintain all of the items listed in this Section
14.07 in his office, or in such other place or places as he may designate from time to time, for
examination during reasonable business hours. Upon the written request of a Participant or
Beneficiary the Plan Administrator must furnish him with a copy of any item listed in this Section
14.07. The Plan Administrator may make a reasonable charge to the requesting person for the copy
so furnished.
14.08 Appeal Procedure for Denial of Benefits. A Participant or a Beneficiary ("Claimant")
may file with the Retirement Committee a written claim for benefits, if the Participant or Beneficiary
determines the distribution procedures of the Plan have not provided him his proper Nonforfeitable
Accrued Benefit. The Retirement Committee must render a decision on the claim within 60 days of
the Claimant's written claim for benefits.
(A) Notice of Denial. The Plan Administrator must provide adequate notice in writing to any
Participant or to any Beneficiary ("Claimant") whose claim for benefits under the Plan the
Retirement Committee has denied. The Plan Administrator's notice of denial of benefits must
identify the name of each member of the Retirement Committee and the name and address of the
Retirement Committee member to whom the claimant may forward his appeal. The Plan
Administrator's notice to the Claimant must also set forth:
(I) The specific reason for the denial;
(2) Specific references to pertinent Plan provisions on which the Retirement Committee
based its denial;
(3) A description of any additional material and information needed for the Claimant to
perfect his claim and an explanation of why the material or information is needed; and
(4) That any appeal the Claimant wishes to make of the adverse determination must be in
writing to the Retirement Committee within 75 days after receipt ofthe Plan Administrator's
notice of denial of benefits. The Plan Administrator's notice must further advise the
Claimant that his failure to appeal the action to the Retirement Committee in writing within
14.2
the 75-day period will render the Retirement Committee's determination final, binding and
conclusive.
(B) Appeal. If the Claimant should appeal to the Retirement Committee, he, or his duly
authorized representative, may submit, in writing, whatever issues and comments he, or his duly
authorized representative, feels are pertinent. The Claimant, or his duly authorized representative,
may review pertinent Plan documents. The Retirement Committee will re-examine all facts related
to the appeal and make a final determination as to whether the denial of benefits is justified under the
circumstances. The Retirement Committee must advise the Claimant of its decision within 60 days
of the Claimant's written request for review, unless special circumstances (such as a hearing) would
make the rendering of a decision within the 60-day limit unfeasible, but in no event may the
Retirement Committee render a decision respecting a denial for a claim for benefits later than 120
days after its receipt of a request for review.
* * * * * * * * * * * * * * *
14.3
ARTICLE XV - RETIREMENT COMMITTEE - DUTIES WITH RESPECT TO
P ARTICIP ANTS' ACCRUED BENEFITS
15.01 Members' Compensation, Expenses. The Employer must appoint an Retirement
Committee to administer the Plan, the members ofwhich mayor may not be Participants in the Plan,
or which may be the Plan Administrator acting alone. In the absence of an Retirement Committee
appointment, the Plan Administrator assumes the powers, duties and responsibilities of the
Retirement Committee. The members of the Retirement Committee will serve without
compensation for services as such, but the Employer will pay all expenses of the Retirement
Committee, except to the extent the Trust properly pays the expenses, pursuant to Article XVI.
15.02 Term. Each member ofthe Retirement Committee serves until the appointment of his
successor.
15.03 Powers. In case of a vacancy in the membership of the Retirement Committee, the
remaining members ofthe Retirement Committee may exercise any and all ofthe powers, authority,
duties and discretion conferred upon the Retirement Committee pending the filling of the vacancy.
15.04 General.
(A) Powers and duties. The Retirement Committee has the following powers and duties:
(1) To select a Secretary, who need not be a member ofthe Retirement Committee;
(2) To determine the rights of eligibility of an Employee to participate in the Plan, the
value of a Participant's Accrued Benefit and the Nonforfeitable percentage of each
Participant's Accrued Benefit;
(3) To adopt rules of procedure and regulations necessary for the proper and efficient
administration of the Plan provided the rules are not inconsistent with the terms of this
Agreement;
(4) To construe and enforce the terms of the Plan and the rules and regulations it adopts
including interpretation of the Plan documents and documents related to the Plan's operation
and the discretion to make factual determinations necessary to the proper administration of
the Plan;
(5) To direct the Trustee as respects the crediting and distribution of the Trust;
(6) To review and render decisions respecting a claim for (or denial of a claim for) a
benefit under the Plan;
(7) To furnish the Employer with information which the Employer may require for tax or
other purposes;
15.1
(8) To engage the service of agents whom it may deem advisable to assist it with the
perfonnance of its duties;
(9) To engage the services of an Investment Manager or Managers, each of whom will
have full power and authority to manage, acquire or dispose (or direct the Trustee with
respect to acquisition or disposition) of any Plan asset under its control;
(10) To establish and maintain a funding standard account and to make credits and charges
to the account to the extent required by and in accordance with the provisions of the
applicable law.
The Retirement Committee will exercise all of its powers, duties and discretion under the
Plan in a uniform and nondiscriminatory manner.
15.05 Funding Policy. The Retirement Committee will review, not less often than annually,
all pertinent Employee information and Plan data in order to establish the funding policy of the Plan
and to determine the appropriate methods of carrying out the Plan's objectives. The Retirement
Committee must communicate periodically, as it deems appropriate, to the Trustee and to any Plan
Investment Manager the Plan's short-term and long-term financial needs so investment policy can be
coordinated with Plan financial requirements.
15.06 Manner of Action. The decision of a majority of the members appointed and
qualified controls.
15.07 Authorized Representative. The Retirement Committee may authorize anyone of
its members, or its Secretary, to sign on its behalf any notices, directions, applications, certificates,
consents, approvals, waivers, letters or other documents. The Retirement Committee must evidence
this authority by an instrument signed by all members and filed with the Trustee.
15.08 Interested Member. No member of the Retirement Committee may decide or
determine any matter concerning the distribution, nature or method of settlement of his own benefits
under the Plan, except in exercising an election available to that member in his capacity as a
Participant, unless the Plan Administrator is acting alone in the capacity of the Retirement
Committee.
15.09 Participant Records. The Retirement Committee will keep such records and will
prepare such reports concerning Participants' Accrued Benefits as applicable law and the Code
require. Upon a Participant's written request, the Retirement Committee will furnish, or will direct
the Plan Administrator to furnish, the Participant such information.
15.10 Unclaimed Accrued Benefit - Procedure. The Plan does not require either the Trustee
or the Retirement' Committee to search for, or ascertain the whereabouts of, any Participant or
Beneficiary. At the time the Participant's or Beneficiary's benefit becomes distributable under the
Plan, the Retirement Committee, by certified or registered mail addressed to his last known address
of record with the Retirement Committee or the Employer, must notify any Participant, or
Beneficiary, that he is entitled to a distribution under this Plan. The notice must quote the provisions
15.2
of this Section 15.10 and otherwise must comply with the notice requirements of Article X. If the
Participant, or Beneficiary, fails to claim his distributive share or make his whereabouts known in
writing to the Retirement Committee within 6 months from the date of mailing of the notice, the
Retirement Committee will treat the Participant's or Beneficiary's unclaimed payable Accrued
Benefit as forfeited. The Employer will use the amounts representing the forfeited Accrued Benefit
to reduce its contribution for future Plan Years.
If a Participant or Beneficiary who has incurred a forfeiture of his Accrued Benefit under this
Section 15.1 0 makes a claim, at any time, for his forfeited Accrued Benefit, the Retirement
Committee must restore the Participant's or Beneficiary's forfeited Accrued Benefit. The Retirement
Committee must direct the Trustee to distribute the Participant's or Beneficiary's restored Accrued
Benefit as soon as administratively practicable following restoration of the forfeited Accrued Benefit,
subject to the consent requirements of Article X.
,~ * * * * * * * * * * * * * *
15.3
ARTICLE XVI - TRUSTEE, POWERS AND DUTIES
16.01 Acceptance. The Trustee accepts the Trust created under the Plan and agrees to
perform the obligations imposed.
16.02 Receipt of Contributions. The Trustee is accountable to the Employer for the funds
contributed to it by the Employer, but does not have any duty to see that the contributions received
comply with the provisions ofthe Plan. The Trustee is not obliged to collect any contributions from
the Employer, nor is obliged to see that funds deposited with it are deposited according to the
provisions of the Plan.
16.03 Investment Powers.
(A) Trustee Powers. The Trustee has full discretion and authority with regard to the investment
of the Trust Fund, except with respect to a Plan asset under the control or direction of a properly
appointed Investment Manager. The Trustee must coordinate its investment policy with Plan
financial needs as communicated to it by the'Retirement Committee.
(1) Investment Powers. The Trustee is authorized and empowered, but not by way of
limitation, with the following powers, rights and duties:
(a) To invest any part or all ofthe Trust Fund in any common or preferred stocks,
open-end or closed-end mutual funds (including mutual funds for which the Trustee
or its affiliate serves as an investment advisor, sponsor, distributor, custodian,
transfer agent, administrator, registrar in any other capacity), put and call options
traded on a national exchange, United States retirement plan bonds, corporate bonds,
debentures, convertible debentures, commercial paper, u.s. Treasury bills, U.S.
Treasury notes and other direct or indirect obligations of the United States
Government or its agencies, improved or unimproved real estate situated in the
United States, limited partnerships, insurance contracts of any type, mortgages, notes
or other property of any kind, real or personal, to buy or sell options on common
stock on a nationally recognized exchange with or without holding the underlying
common stock, to buy and sell commodities, commodity options and contracts for the
future delivery of commodities, and to make any other investments the Trustee deems
appropriate, as a prudent man would do under like circumstances with due regard for
the purposes of this Plan. Any investment made or retained by the Trustee in good
faith is proper but must be of a kind constituting a diversification considered by law
suitable for trust investments.
(b) To retain in cash so much of the Trust Fund as it may deem advisable to
satisfy liquidity needs of the Plan and to deposit any cash held in the Trust Fund in a
bank account at reasonable interest.
16.1-
(c) )'0 invest, ifthe Trustee is a bank or similar financial institution supervised by
the United States or by a State, in any type of deposit of the Trustee (or of a bank
related to the Trustee within the meaning of Code 9414(b)) at a reasonable rate of
interest or in a common trust fund, as described in Code 9584, or collective
investment fund, the provisions of which govern the investment of such assets and
which the Plan incorporates by this reference which the Trustee (or its affiliate, as
defined in Code 91504) maintains exclusively for the collective investment of money
contributed by the bank (or the affiliate) in its capacity as trustee and which conforms
to the rules of the Comptroller of the Currency.
(d) To manage, sell, contract to sell, grant options to purchase, convey, exchange,
transfer, abandon, improve, repair, insure, lease for any term even though
commencing in the future or extending beyond the term of the Trust, and otherwise
deal with all property, real or personal, in such manner, for such considerations and
on such terms and conditions as the Trustee decides.
(e) To credit and distribute the Trust as directed by the Retirement Committee.
The Trustee is not obliged to inquire as to whether any payee or distributee is entitled
to any payment or whether the distribution is proper or within the terms of the Plan,
or as to the manner of making any payment or distribution. The Trustee is
accountable only to the Retirement Committee for any payment or distribution made
by it in good faith on the order or direction of the Retirement Committee.
(f) To borrow money, to assume indebtedness, extend mortgages and encumber
by mortgage or pledge.
(g) To compromise, contest, arbitrate or abandon claims and demands, in its
discretion.
(h) To have with respect to the Trust all of the rights of an individual owner,
including the power to give proxies, to participate in any voting trusts, mergers,
consolidations or liquidations, and to exercise or sell stock subscriptions or
conversion rights.
(i) To lease for oil, gas and other mineral purposes and to create mineral
severances by grant or reservation; to pool or unitize interests in oil, gas and other
minerals; and to enter into operating agreements and to execute division and transfer
orders.
(j) To hold any securities or other property in the name of the Trustee or its
nominee, with depositories or agent depositories or in another form as it may deem
best, with or without disclosing the trust relationship.
16.2
(k) To perform any and all other acts in its judgment necessary or appropriate for
the proper and advantageous management, investment and distribution of the Trust.
(1) To retain any funds or property subject to any dispute without liability for the
payment of interest, and to decline to make payment or delivery of the funds or
property until final adjudication is made by a court of competent jurisdiction.
(m) To file all tax returns required of the Trustee.
(n) To furnish to the Employer, the Plan Administrator and the Retirement
Committee an annual statement of account showing the condition of the Trust Fund
and all investments, receipts, disbursements and other transactions effected by the
Trustee during the Plan Year covered by the statement and also stating the assets of
the Trust held at the end of the Plan Year, which accounts are conclusive on all
,.. persons, including the Employer, the Plan Administrator and the Retirement
Committee, except as to any act or transaction concerning which the Employer, the
Plan Administrator or the Retirement Committee files with the Trustee written
exceptions or objections within 90 days after the receipt of the accounts or for which
applicable law authorizes a longer period within which to object.
(0) To begin, maintain or defend any litigation necessary in connection with the
administration of the Plan, except that the Trustee is not obliged or required to do so
unless indemnified to its satisfaction.
(B) Participant Loans. This Plan does not permit loans to Participants or to Beneficiaries.
16.04 Records and Statements. The records of the Trustee pertaining to the Plan must be
open to the inspection ofthe Plan Administrator, the Retirement Committee and the Employer at all
reasonable times and may be audited from time to time by any person or persons as the Employer,
Plan Administrator or Retirement Committee may specify in writing. The Trustee must furnish the
Plan Administrator or Retirement Committee with whatever information relating to the Trust Fund
the Plan Administrator or Retirement Committee considers necessary.
16.05 Fees and Expenses From Fund. The Trustee will receive reasonable annual
compensation as may be agreed upon from time to time between the Employer and the Trustee. No
person who is receiving full pay from the Employer may receive compensation for services as
Trustee. The Trustee will pay from the Trust Fund all fees and expenses reasonably incurred by the
Plan, to the extent such fees and expenses are for the ordinary and necessary administration and
operation of the Plan, unless the Employer pays the fees and expenses. Any fee or expense paid,
directly or indirectly, by the Employer is not an Employer contribution to the Plan, provided the fee
or expense r:elates to the ordinary and necessary administration of the Fund.
16.06 Parties to Litigation. Except as otherwise provided by applicable law, no Participant,
or Beneficiary is a necessary party or is required to receive notice of process in any court proceeding
16.3
involving the Plan, the Trust Fund or any fiduciary of the Plan. Any final judgment entered in any
proceeding will be conclusive upon the Employer, the Plan Administrator, the Retirement
Committee, the Trustee, Participants and Beneficiaries.
16.07 Professional Agents. The Trustee may employ and pay from the Trust Fund
reasonable compensation to agents, attorneys, accountants and other persons to advise the Trustee as
in its opinion may be necessary. The Trustee may delegate to any agent, attorney, accountant or
other person selected by it any non-Trustee power or duty vested in it by the Plan, and the Trustee
may act or refrain from acting on the advice or opinion of any agent, attorney, accountant or other
person so selected.
16.08 Distribution Directions. The Trustee may make distribution under the Plan in cash or
property, or partly in each, at its fair market value as determined by the Trustee. For purposes of a
distribution to a Participant or to a Participant's designated Beneficiary or surviving spouse,
"property" includes a Nontransferable Annuity Contract, provided the contract satisfies the
requirements of this Plan. If no one claims a payment or distribution made from the Trust, the
Trustee must promptly notify the Retirement Committee and then dispose of the payment in
accordance with the subsequent direction of the Retirement Committee.
16.09 Third PartylMultiple Trustees. No person dealing with the Trustee is obligated to see
to the proper application of any money paid or property delivered to the Trustee, or to inquire
whether the Trustee has acted pursuant to any ofthe terms of the Plan. Each person dealing with the
Trustee may act upon any notice, request or representation in writing by the Trustee, or by the
Trustee's duly authorized agent, and is not liable to any person in so acting. The certificate of the
Trustee that it is acting in accordance with the Plan will be conclusive in favor of any person relying
on the certificate. If more than two persons act as Trustee, a decision ofthe majority of such persons
controls with respect to any decision regarding the administration or investment ofthe Trust Fund or
any portion of the Trust Fund with respect to which such persons act as Trustee. However, the
signature of only one Trustee is necessary to effect any transaction on behalf of the Trust.
16.10 Resignation. The Trustee may resign its position at any time by giving 30 days
written notice in advance to the Employer and to the Retirement Committee. If the Employer fails to
appoint a successor Trustee within 60 days of its receipt of the Trustee's written notice of resignation,
the Trustee will treat the Employer as having appointed itself as Trustee and as having filed its
acceptance of appointment with the former Trustee.
16.11 Removal. The Employer, by giving 30 days written notice in advance to the Trustee,
may remove any Trustee. In the event of the resignation or removal of a Trustee, the Employer must
appoint a successor Trustee if it intends to continue the Plan. If two or more persons hold the
position of Trustee, in the event of the removal of one such person, during any period the selection of
a replacement is pending, or during any period such person is unable to serve for any reason, the
remaining person or persons will act as the Trustee.
16.4
16.12 Interim Duties and Successor Trustee. Each successor Trustee succeeds to the title to
the Trust vested in his predecessor by accepting in writing his appointment as successor Trustee and
by filing the acceptance with the former Trustee and the Retirement Committee without the signing
or filing of any further statement. The resigning or removed Trustee, upon receipt of acceptance in
writing ofthe Trust by the successor Trustee, must execute all documents and do all acts necessary to
vest the title of record in any successor Trustee. Each successor Trustee has and enjoys all of the
powers, both discretionary and ministerial, conferred under this Agreement upon his predecessor. A
successor Trustee is not personally liable for any act or failure to act of any predecessor Trustee,
except as required under applicable law. With the approval of the Employer and the Retirement
Committee, a successor Trustee, with respect to the Plan, may accept the account rendered and the
property delivered to it by a predecessor Trustee without incurring any liability or responsibility for
so doing.
16.13 Valuation of Trust. The Trustee must value the Trust Fund as of each Accounting
Date to determine the fair market value ofthe assets in the Trust. The Trustee also must value the
Trust Fund on such other dates as directed in writing by the Retirement Committee.
16.14 Limitation on Liability - If Investment Manager or Independent Fiduciary Appointed.
The Trustee is not liable for the acts or omissions of any Investment Manager the Retirement
Committee may appoint, nor is the Trustee under any obligation to invest or otherwise manage any
asset of the Plan which is subject to the management of a properly appointed Investment Manager.
In addition, any Investment Manager appointed by the Retirement Committee shall have the sole
responsibility for voting proxies for those assets of the Plan that it manages. The Retirement
Committee, the Trustee and any properly appointed Investment Manager may execute a letter
agreement as a part of this Plan delineating the duties, responsibilities and liabilities of the
Investment Manager with respect to any part of the Trust Fund under the control of the Investment
Manager.
16.15 Investment in Group Trust Fund 1 Combined Trust. At the Employer's discretion, the
Trustee, for collective investment purposes, may combine into one trust fund the Trust created under
this Plan with the Trust created under any other qualified retirement plan the Employer maintains.
However, the Trustee must maintain separate records of account for the assets of each Trust in order
to reflect properly each Participant's Accrued Benefit under the planes) in which he is a Participant.
* * * * * * * * * * * * * * *
16.5
ARTICLE XVII - INVESTMENT IN INSURANCE OR ANNUITY CONTRACTS
17.01 Purchase of Life Insurance and Annuity Contracts. The Plan does not provide
incidenta1life insurance benefits for Participants.
* * * * * * * * * * * * * * *
17.1
ARTICLE XVIII - MISCELLANEOUS
18.01 Evidence. Anyone required to give evidence under the terms of the Plan may do so
by certificate, affidavit, document or other information which the person to act in reliance may
consider pertinent, reliable and genuine, and to have been signed, made or presented by the proper
party or parties. Both the Retirement Committee and the Trustee are fully protected in acting and
relying upon any evidence described under the immediately preceding sentence.
18.02 No Responsibility for Employer Action. Neither the Trustee nor the Retirement
Committee has any obligation or responsibility with respect to any action required by the Plan to be
taken by the Employer, any Participant or eligible Employee, or for the failure of any of the above
persons to act or make any payment or contribution, or to otherwise provide any benefit
contemplated under this Plan. Furthermore, the Plan does not require the Trustee or the Retirement
Committee to collect any contribution required under the Plan, or to determine the correctness of the
amount of any Employer contribution. Neither the Trustee nor the Retirement Committee need
inquire into or be responsible for any action or failure to act on the part of the others, or on the part
of any other person who has any responsibility regarding the management, administration or
operation ofthe Plan, whether by the express terms ofthe Plan or by a separate agreement authorized
by the Plan or by the provisions of applicable law.
18.03 Fiduciaries Not Insurers. The Trustee, the Retirement Committee, the Plan
Administrator and the Employer do not guarantee, to any extent, the Trust Fund from loss or
depreciation. 'The Employer does not guarantee the payment of any money which may be or
becomes due to any person from the Trust Fund. The liability of the Retirement Committee and the
Trustee to make any payment from the Trust Fund at any time and all times is limited to the then
available assets of the Trust.
18.04 Waiver of Notice. Any person entitled to notice under the Plan may waive the notice,
unless applicable law specifically or impliedly prohibits such a waiver.
18.05 Successors. The Plan is binding upon all persons entitled to benefits under the Plan,
their respective heirs and legal representatives, upon the Employer, its successors and assigns, and
upon the Trustee, the Retirement Committee, the Plan Administrator and their successors.
18.06 Word Usage. Words used in the masculine also apply to the feminine where
applicable, and wherever the context of the Employer's Plan dictates, the plural includes the singular
and the singular includes the plural.
18.07 State Law. Florida law will determine all questions arising with respect to the
provisions of this Agreement.
18.08 Employment Not Guaranteed. Nothing contained in this Plan, or with respect to the
establishment of the Trust, or any modification or amendment to the Plan or Trust, or in the creation
of any Account, or the payment of any benefit, gives any Employee, Employee-Participant or any
18.1
Beneficiary any right to continue employment, any legal or equitable right against the Employer, or
Employee of the Employer, or against the Trustee, or its agents or employees, or against the Plan
Administrator, except as expressly provided by the Plan, the Trust, by a separate agreement or by
applicable law.
* * * * * * * * * * * * * * *
18.2
ARTICLE XIX - EXCLUSIVE BENEFIT, AMENDMENT, TERMINATION
. 19.01 Exclusive Benefit. Except as provided under Article III and Article XII, the Employer
has no beneficial interest in any asset of the Trust and no part of any asset in the Trust may ever
revert to or be repaid to an Employer, either directly or indirectly; nor prior to the satisfaction of all
liabilities with respect to the Participants and their Beneficiaries under the Plan, may any part of the
corpus or income of the Trust Fund, or any asset of the Trust, be (at any time) used for, or diverted
to, purposes other than the exclusive benefit of the Participants or their Beneficiaries. However, if
the Commissioner of Internal Revenue, upon the Employer's request for initial approval of this Plan,
determines that the Trust created under the Plan is not a qualified trust exempt from Federal income
tax, then (and only then) the Trustee, upon written notice from the Employer, will return the
Employer's contributions (and increment attributable to the contributions) to the Employer. The
Trustee must make the return of the Employer contribution under this Section 19.01 within one year
of a final disposition of the Employer's request for initial approval of the Plan. The Employer's Plan
and Trust will terminate upon the Trustee's return of the Employer's contributions.
19.02 Amendment By Employer.
(A) Amendment of Plan. The Employer has the right at any time and from time to time:
(1) To amend this Agreement in any manner it deems necessary or advisable in order to
qualify (or maintain qualification of) this Plan and the Trust created under it under the
provisions of the Code s401(a); and
(2) To amend this Agreement in any other manner.
No amendment may authorize or permit any of the Trust Fund (other than the part which is
required to pay administration expenses) to be used for or diverted to purposes other than for the
exclusive benefit of the Participants or their Beneficiaries or estates. No amendment may cause or
permit any portion of the Trust Fund to revert to or become the property of the Employer. The
Employer also may not make any amendment which affects the rights, duties or responsibilities of
the Trustee, the Plan Administrator or the Retirement Committee without the written consent of the
affected Trustee, the Plan Administrator or the affected member ofthe Retirement Committee. The
Employer must make all amendments in writing. Each amendment must state the date to which it is
either retroactively or prospectively effective.
19.03 Discontinuance. The Employer has the right, at any time, to suspend or discontinue
its contributions under the Plan, and to terminate, at any time, this Plan and the Trust created under
this Agreement. The Plan will terminate upon the first to occur of the following:
(a) The date terminated by action of the Employer; or
(b) The dissolution or merger of the Employer, unless the successor makes provision to
continue the Plan, in which event the successor must substitute itself as the Employer under
19.1
this Plan. Any termination ofthe Plan resulting from this paragraph (b) is not effective until
compliance with any applicable notice requirements.
19.04 Full Vesting on Termination. Upon either full or partial termination of the Plan, an
affected Participant's right to his Accrued Benefit is 100% Nonforfeitable, irrespective of the
Nonforfeitable percentage which otherwise would apply under Article VIII.
19.05 Termination.
(A) Procedure. Upon termination of the Plan, in order to liquidate the Trust, the Retirement
Committee shaU either direct the Trustee to:
(a) distribute the present value of the Nonforfeitable Accrued Benefit of each Participant
in one lump sum; or
(b) distribute the Nonforfeitable Accrued Benefit of the Participants by purchasing a
deferred annuity contract for each Participant; or
(c) directly transfer the present value of the Nonforfeitable Accrued Benefit of each
Participant to another retirement plan described in Code S401 (a); or
(d) utilize any combination of the methods referenced in clauses (a), (b) or (c) above, as
determined in the sole discretion ofthe Retirement Committee.
The Retirement Committee, shall by resolution, specify the method ofliquidating the Trust
upon termination of the Plan. The Trust will continue until the Trustee in accordance with the
direction of the Retirement Committee has distributed all of the benefits under the Plan.
(B) Freezing Plan/Mergers or Transfers. A resolution or amendment to freeze all future benefit
accrual but otherwise to continue maintenance of this Plan, is not a termination for purposes of this
Section 19.05. Furthermore, a merger or direct transfer described in Section 11.05 ofthe Plan is not
a termination for purposes of the special distribution provisions described in Section 19.05(A).
19.2
ARTICLE A
APPENDIX TO PLAN AND TRUST AGREEMENT
USERRA Model Amendment
Notwithstanding any provision ofthis Plan to the contrary, contributions,'benefits and service
credit with respect to qualified military service will be provided in accordance with Code S414(u).
19.3
IN WITNESS WHEREOF, the Employer and the Trustee have executed this Plan and Trust,
as modified herein, in Winter Springs, Florida this 10th day of November
2003.
EMPLOYER:
CITY OF WINTER SPRINGS
)~
By:
Print Andrea Lorenzo~Luaces
Print John F. Bush
Its Mayor
.,:.:..~--"/
TRUSTEE:
BOARD OF TRUSTEES OF THE
C~GS
By:
Print ~'\jb~~ Lu~ .' \...v.~~
Print
Rob0rf- Mt,Pey
Ck;;'/?tQY]
Its
19.4
CITY OF WINTER SPRINGS
SUMMARY OF RETIREMENT PLAN CHANGES
11/1 0103
1.' Plan Merger (Effective 10/1/00)
A. Money Purchase Plan merged into Defined Benefit Plan.
B. Money Purchase Plan abolished.
C. Participant accounts and all other assets of the Money Purchase Plan
transferred to the Defined Benefit 'Plan. Participant accounts will be
available for distribution to the employee upon retirement. Participant
accounts earn interest at a rate equal to the 30-year Treasury bond
rate, and effective October 1, 2003, the U.S. Treasury Department
long-term average rate or such other rate that may be approved by the
U.S. Treasury Department.
2. Excluded Employees - excluded employees include those whose customary
weekly employment is less than 29 hours, and those who participate in
another qualified plan maintained by the City (other than the Money Purchase
Pension Plan). A participant who becomes an excluded employee does not
accrue benefits attributable to the period he is excluded, but will receive credit
for vesting. An excluded employee who is not a plan participant but becomes
eligible will become a participant immediately upon satisfaction of eligibility
conditions, and years of service during the period the employee was excluded
will be credited for vesting.
3. City Contributions - the City makes such contributions as are required to
fund the plan on a sound actuarial basis, in accord with state law.
4. Employee Contributions - employees contribute 3% of compensation to the
retirement plan. Employee contributions are "picked up" by the City (i.e., they
are deducted from the employee's pay and paid to the retirement plan in pre-
tax dollars).
5. Benefit Formula - for service prior to 10/1/00, 2% of average compensation
multiplied by years of service. For service on and after 1011/00, 3% of
average compensation multiplied by years of service, counting forward from
the date of initial participation in the Plan.
6. Lump Sum Payments - If the present value of a participant's benefit is less
than $3,500, the full amount will automatically be paid in a lump sum.
7 . Year of Accrual Service - amended to provide for the purchase of prior
service with a federal, state or local government agency, provided the
employee pays the full actuarial cost of such service and will not receive a
benefit for such service under another pension plan. Also allows any
employee who has prior service with the City but did not make contributions
to the Money Purchase Plan or the Defined Benefit Plan to obtain credited
service under the Defined Benefit Plan by paying the required participant
contributions due under both plans for such service.
8. Floor-Offset Arrangement - repealed (this is the provision that reduced a
member's benefit under the defined benefit plan by the value of the benefit
accrued under the money purchase plan; since the money purchase plan has
been abolished, this provision is no longer needed).
9. 100% Vesting of Employee Contributions - employee contributions to the
defined benefit plan made on and after October I, 2000 are 100% vested, and
such employee contributions, plus interest at the 30-year Treasury bond rate,
and effective October 1, 2003, the U.S. Treasury Department long-term
average rate or such other rate that may be approved by the U.S. Treasury
Department, are included in the deferred vested benefit payable at the normal
retirement date. An employee may receive a refund of employee
contributions made to the money purchase plan prior to October 1, 2000, with
interest, upon termination of empl~yment, and any such refund will be used to
reduce the accrued benefit, if any, at normal retirement date.
10. Rollover of Distributions -- the plan is amended to permit eligible rollover
distributions to be paid directly to an eligible rollover retirement plan. The
plan is also amended to provide for acceptance of rollover of an eligible
distribution from a qualified plan.
11. Miscellaneous - the plan is amended to incorporate vanous technical
amendments suggested by the City's former counsel.
2
ADOPTED 11/10103
RESOLUTION NO. 2003-44
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
WINTER SPRINGS, FLORIDA, MERGING THE MONEY PURCHASE
PENSION PLAN AND TRUST FOR EMPLOYEES OF THE CITY OF
WINTER SPRINGS INTO THE DEFINED BENEFIT PLAN AND TRUST
FOR EMPLOYEES OF THE CITY OF WINTER SPRINGS; AMENDING
THE WITNESSETH CLAUSE TO PROVIDE THAT THE RESTATED
DEFINED BENEFIT PLAN IS EFFECTIVE OCTOBER 1, 1997;
AMENDING ARTICLE I OF THE DEFINED BENEFIT PLAN TO
CLARIFY THE DEFINITION OF "EMPLOYEE"; AMENDING ARTICLE
II OF THE DEFINED BENEFIT PLAN TO DEFINE EMPLOYEES
EXCLUDED FROM THE PLAN AND TO PROVIDE FOR THE
INCLUSION OF EMPLOYEES WITH NON-CONTRIBUTING YEARS OF
SERVICE UNDER CERTAIN CIRCUMSTANCES; AMENDING
ARTICLE III OF THE DEFINED BENEFIT PLAN TO PROVIDE FOR
CITY CONTRIBUTIONS IN AN AMOUNT NECESSARY TO FUND THE
PLAN ON A SOUND ACTUARIAL BASIS, TO CLARIFY THE
LIMITATION ON ANNUAL BENEFITS, TO PROVIDE FOR USE OF
MORTALITY TABLES TO DETERMINE ACTUARIAL EQUIVALENTS,
TO CLARIFY THE MAXIMUM PERMISSIBLE AMOUNT OF ANNUAL
ADDITIONS, TO PROVIDE FOR A DEFINITION OF "APPLICABLE
MORTALITY TABLE", AND TO ELIMINATE SECTION 3.07;
AMENDING ARTICLE IV OF THE DEFINED BENEFIT PLAN TO
PROVIDE FOR A THREE PERCENT CONTRIBUTION BY
PARTICIPANTS, TO PROVIDE FOR DIRECT TRANSFER OF
ELIGIBLE ROLLOVER DISTRIBUTIONS, TO PROVIDE FOR THE
"PICK-UP" OF P ARTICIP ANT CONTRIBUTIONS BY THE
EMPLOYER, TO PROVIDE FOR THE TRANSFER OF THE
PARTICIPANT ACCOUNT BALANCE FROM THE MONEY PURCHASE
PENSION PLAN TO THE DEFINED BENEFIT PLAN AND TlRUST, AND
TO PROVIDE FOR THE DISTRIBUTION OF SUCH ACCOUNT
BALANCE UPON NORMAL RETIREMENT; AMENDING ARTICLE V
OF THE DEFINED BENEFIT PLAN TO PROVIDE A THREE PERCENT
BENEFIT MULTIPLIER FOR SERVICE AFTER OCTOBER 1, 2000,
REVISING PROVISIONS RELATED TO ACCRUAL YEAR OF
SERVICE, AND DELETING THE FLOOR-OFFSET ARRANGEMENT;
AMENDING ARTICLE VI OF THE DEFINED BENEFIT PLAN TO
MODIFY THE AMOUNT PAYABLE TO A PARTICIPANT IN A LUMP
SUM UPON EARLY RETIREMENT; AMENDING ARTICLE VIII OF
THE DEFINED BENEFIT PLAN TO MODIFY THE AMOUNT OF
DEFERRED VESTED PENSION PAYABLE TO A PARTICIPANT IN A
LUMP SUM, CREATING A NEW SECTION 8.05(B) TO PROVIDE FOR
ONE HUNDRED PERCENT VESTING OF REQUIRED PARTICIPANT
CONTRIBUTIONS, AND MAKING TECHNICAL AMENDMENTS;
AMENDING ARTICLE IX OF THE DEFINED BENEFIT PLAN TO
MODIFY THE AMOUNT PAYABLE IN A LUMP SUM TO A
P ARTICIP ANT'S SURVIVOR; AMENDING ARTICLE X OF THE
DEFINED BENEFIT PLAN TO MODIFY THE AMOUNT OF
NONFORFEIT ABLE ACCRUED BENEFIT ABOVE WHICH A
PARTICIPANT MUST CONSENT IN WRITING FOR ANY
DISTRIBUTION, AND MODIFYING THE AMOUNT OF ACCRUED
BENEFIT, NORMAL RETIREMENT BENEFIT, AND DEATH BENEFIT
PAYABLE TO A PARTICIPANT IN A LUMP SUM; AMENDING
ARTICLE XI OF THE DEFINED BENEFIT PLAN TO PERMIT THE
TRUSTEES TO ACCEPT TRANSFER OF ASSETS IN THE MONEY
PURCHASE PENSION PLAN; PROVIDING FOR CONFLICTS;
PROVIDING FOR SEVERABILITY;PROVID][NG AN EFFECTIVE
DATE.
WHEREAS, the City Commission approved certain changes to the City's retirement
program for employees in July 2000 and September 2001; and
WHEREAS, the changes to the retirement program approved by the City Commission
require merging the Money Purchase Pension Plan and Trust for Employees of the City of
Winter Springs Plan and Trust with the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs, and amending provisions of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF WINTER SPRINGS, FLORIDA:
Section 1.
A. That the Money Purchase Pension Plan and Trust for Employees of the City of Winter
Springs be merged into the Defined Benefit Plan and Trust for the Employees of the City of
Winter Springs, effective October 1, 2000.
2
B. That the Money Purchase Plan and Trust tor Employees ofthe City of Winter Springs
cease to exist as of October 1, 2000.
C. That upon the merger of the two plans, all participant accounts and all other assets of
the Money Purchase Plan and Trust for Employees of the City of Winter Springs, together with
earnings and interest thereon, be transferred to and become an integral part of the Defined
Benefit Plan and Trust for Employees of the City of Winter Springs; provided that said
participant accounts shall be available for distribution as permitted by the Defined Benefit Plan
and Trust for Employees of the City of Winter Springs.
Section 2.
That the Witnesseth Clause of the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs be amended as follows:
The City of Winter Springs establishescontinues, within this Trust Agreement, a
Plan for the administration and distribution of contributions made by the Employer f{)r
the purpose of providing retirement benefits for eligible Employees. This Plan is an
amended,plan. in restated form. the original plan being effective October 1. 1997 and this
restated Plan is also effective October 1. 1997 (except to the extent otherwise provided
herein). The provisions of this Plan apply solely to an Employee whose employment
with the Employer terminates on or after the Effective Date of the Plan. If an Employee's
employment with the Employer terminates prior to the Effective Date, that Employee is
not entitled to any benefit under the Plan.
Section 3.
That Section 1.06 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
1.06 "Employee" means any employee of the Employer. Individuals who
perform services for the Employer in any capacity other than as an Emplovee. determined
pursuant to the books and records of the Emplover (e.g.. independent contractors or
leased employees within the meaning of Code S 414(n). even if such individuals are
reclassified as Employees by any governmental agency (other than the Employer) or
iudicial decision). are not Employees for purposes of the Plan. and thus. are not eligible
to participate in the Plan.
3
Section 4.
That Section 2.01 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
2.01 Eligibility. Each Employee (other than an Excluded Employee) becomes
a Participant in the Plan on the first day of the month (if employed on that date)
immediately following the date 6 months after his Employment Commencement Date.
"Employment Commencement Date" means the date on which the Employee first
performs an Hour of Service for the Employer.
(A) Excluded Employee
(1 ) An Employee is an Excluded Employee if his customary weekly
"employment with..the Employer is less than 29 hours. An Employee is an
Excluded Employee if he is actively participating (and "benefiting" within the
meaning of Treas. Reg. ~ 1.41 O(b )-3) in another qualified plan maintained by the
Employer other than the Money Purchase Pension Plan and Trust for Employees
of the City of Winter Springs. Florida (hereinafter referred to as the "Money
Purchase Plan").
(2) If a Participant has not incurred a Separation from Service but becomes an
Excluded Employee. then during the period such a Participant is an Excluded
Employee, the Participant will not accrue a benefit under the Plan attributable to
any period during which he is an Excluded Employee. However. during such
period of exclusion, the Participant. without regard to employment classification,
continues to receive credit for vesting under Article VIII for each included Year
of Service.
(3) If an Excluded Employee who is not a Participant becomes eligible to
participate in the Plan by reason of a change in employment classification, he will
participate in the Plan immediately if he has satisfied the eligibility conditions of
SectiOn 2.01 and would have been a Participant had he not been an Excluded
Employee during his period of Service. Furthermore, the Plan takes into account
all of the Participant's included Years of Service with the Employer as an
Excluded Employee for purposes of vesting credit under Article VIII.
(B) Employees with Non-Contributing Service. Any Employee who completed Years
of Service prior to adoption of Resolution No. 2003-44, but did not make contributions to
this Trust Fund or to the Money Purchase Plan, shall be credited with Years of Accrual
Service upon payment of the Required Participant Contributions due under this Plan and
the. required participant contributions due under the Money Purchase Plan for such
servIce.
4
Section 5.
That Section 3.01 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
3.01 Amount.
(A) The Employer alone '.",ill make the contributions required to fund the cost of the
benefits provided by this Plan. The Employer intends to make such contributions as are
necessary to fund the Plan on a sound actuarial basis. in accordance with applicable law.
(B) The Employer contributes to this Plan on the condition its contribution is not due
to a mistake of fact. The Trustee, upon written request from the Employer, must return to
the Employer the amount of the Employer's contribution made by the Employer by
mistake of fact. The Trustee will not return any portion of the Employer's contribution
under the provisions of this paragraph more than one year after the Employer made the
contribution by mistake of fact. Furthermore, the Trustee will not increase the amount of
the employer contribution returnable under this Section 3.01 for any earnings attributable
to the contribution, but the Trustee will decrease the Employer contribution returnable for
any losses attributable to it.
Section 6.
That Section 3.05 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
3.05 Limitation on Annual Benefit. A Participant's Annual Benefit payable at
any time within a Limitation Year may not exceed the limitations of this Section 3.05,
even if the benefit formula under the Plan would produce a greater" Annual Benefit.
**********
(B) Commencement prior to age 62. If a Participant's Annual Benefit commences
prior to his attaining age 62, the Retirement Committee will adjust the $90,000 (or the
larger adjusted dollar amount) limitation of this Section 3.05 to the Actuarial Equivalent
of an Annual Benefit equal to such, dollar limitation commencing at age 62. The
Actuarial Equivalent under the immediately preceding sentence may not be less than
$75,000 in the event a Participant's Annual Benefit commences at or after age 55. In the
event a Participant's Annual Benefit commences prior to age 55, the Actuarial Equivalent
will equal the greater of (1) the Actuarial Equivalent of a $75,000 Annual Benefit
commencing at age 55 or (2) the Actuarial Equivalent of a $90,000 (or larger adjusted
dollar amount) Annual Benefit commencing at age 62. To determine the Actuarial
Equivalent under this paragraph, the Retirement Committee will use an interest rate
5
assumption equal to the greater of 5% per annum or the rate specified in Section 1.12 and
the Applicable Mortality Table.
(C) Commencement after age 65. If a Participant's Annual Benefit commences after
his attaining age 65, the Retirement Committee will adjust the $90,000 (or larger adjusted
dollar amount) limitation of this Section 3.05 to the Actuarial Equivalent of an Annual
Benefit equal to such dollar limitation commencing at age 65. To determine the
Actuarial Equivalent under this paragraph, the Retirement Committee will use an interest
rate assumption equal to the lesser of 5% per annum or the rate specified in Section 1.12
and the Applicable Mortality Table.
**********
(E) Adjustment for Years of ServiceN ears of Participation Less Than 10. The
maximum .^..nnual Bcncfit$90.000 (or such larger adiusted dollar amount) limitation
. ..described in this Section 3.05 applies to a Participant who has completed at least 10.
Years of Service \-'1ith the Employer, for purposes of the 100% average Compensation
limitation and has completed atleast 10 Years of Participation in the Plan, f-or purposes of
the dollar limitation. If a Participant has less than 10 Years of Service with the Employer
at the time benefits commence, the Retirement Committee will multiply his 100%
average Compensation limitation by a fraction, the numerator of which is the number of
Years of Service (including fractional years) '.vith the Employer and the denominator of
which is 10. If a Participant has less than 10 Years of Participation in the Plan at the time
his benefits commence, the Retirement Committee will multiply his dollar limitation by a
fraction, the numerator of which is the number of Years of Participation (including
fractional years) in the Plan and the denominator of which is 10. The reductions
described in this paragraph will not reduce a Participant's maximum .^....~..nual Benefitdollar
limitation to less than one-tenth of the maximum "^....~ual Benefitdollar limitation
determined without regard to the reductions.
(F) Alternate Forms of Payment. If the Trustee pays the Participant's benefit in a
form other than an Annual Benefit, the benefit paid may not exceed the Actuarial
Equivalent of the maximum Annual Benefit payable as a straight life annuity. To
determine the Actuarial Equivalent under this paragraph, the Retirement Committee will
use an interest rate assumption equal to the greater of 5% per annum or the rate specified
in Section 1.12 and the Applicable Mortality Table.
Section 7.
That Section 3.06 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follo.s:
3.06 Definitions - Article III. The definitions in this Section 3.06 apply to the
limitation provisions of Part 2 of Article III. For purposes of Article III, the following
terms mean:
6
(A) General DetInitions.
* * * * * * * * * *
(4) Annual Addition. Annual Additions are the following amounts allocated
on behalf of a Participant for a Limitation Year, under a defined contribution plan
maintained by the Employer: (i) all Employer contributions; (ii) all forfeitures;
and (iii) all Employee contributions. Except to the extent provided in Treasury
regulations, Annual Additions include excess contributions described in Code
g401(k), excess aggregate contributions described in Code g401(m), irrespective
of whether the plan distributes or forfeits such excess' amounts. Excess deferrals
under Code g402(g) are not Annual Additions unless distributed after the
correction period described in Code g402(g). Amounts allocated after March 31,
1984, to an individual medical account (as defined in Code S415(1)(2)) included
as part of a defined benefit plan, maintained by the Employer also are Annual
Additions. F.urthermore, Annual Additions include contributions paid or.accrued
after December 31, 1985, for taxable years ending after December 31, 1985,
attributable to post-retirement medical benefits allocated to the separate account
of a key employee (as defined in Code g419 A( d)(3)) under a welfare' benefit fund
(Code g419(e)) maintained by the Employer. For a Limitation Year, the Annual
Additions allocated on behalf of any Participant, to all defined contribution plans
maintained by the Employer, may not exceed the Maximum Permissible Amount.
The "Maximum Permissible Amount" is the lesser of (I) $30,000 (or, if greater,
one fourth of the defined benefit dollar limitation$30.000 amount as adiusted
under Code g415(b)(I)(A)g), or (II) 25% of the Participant's 'Compensation for
the Limitation Year. If there is a short Limitation Year because of a change in
Limitation Year, the Retirement Committee will multiply the $30,000 limitation
(or larger limitation) on Annual Additions by the following fraction:
Number of months in the short Limitation Year
12",
(5) Year of Service. A Plan Year during which an Employee completes at
least 1,000 Hours of Applicable Mortality Table. The Applicable Mortality Table
means the mortality table specified in Code & 417(e)(3) and set forth in Revenue
Ruling 95-6 (or any applicable subsequent pronouncement issued by Internal
Revenue Service.
Section 8.
That Section 3.07 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be eliminated.
7
Section 9.
That Section 4.01 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
4.01 Participant Contributions. The Plan does not permit nor require Participant
contributions. Required Participant Contributions. The Plan did not permit nor require
Participant Contributions prior to October 1. 2000. Effective October I. 2000. each
Participant is required to contribute 3% of Compensation to the Plan. which contribution
shall be considered the Required Participant Contribution. The required participant
contribution shall be deducted from' each Participant's Compensation whenever such
Compensation is paid. and remitted to the Trustee. Required participant contributions
shall be considered an Employer "pick-up" contribution and shall be designated as
employer contributions pursuant to Section 414(h) of the Internal Revenue Code.
contingent upon the contributions being excluded .from. the ,Participant's. gross income for
federal income tax purposes. For all other purposes of this Plan. such contributions shall
be considered Participant contributions.
Section 10.
That Section 4.02 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
4.02 Participant Rollover Contributions. The Plan does not permit Participant
rollo';er contributionsDirect Transfers of Eligible Rollover Distributions.
(A) General. This section applies to distributions made on or after October L 2002.
Notwithstanding any provision of the plan to the contrary that would otherwise limit a
distributee's election under this section. a distributee may elect. at the time and in the
manner prescribed by the board. to have any portion of an eligible rollover distribution
paid directly to an eligible retirement plan specified by the distribute in a direct rollover.
(B) Definitions.
(1) "Eligible rollover distribution" is any distribution of all or any portion of
the balance to the credit of the distributee. except that an eligible rollover
distribution does not include: any distribution that is one of a series of
substantially equal periodic payments (not less frequently than annually) made for
the life (or life expectancy) of the distribute or the ioint lives (or ioint life
expectancies) of the distribute and the distributee's designated Beneficiary. or for
a specified period of ten years or more: any distribution to the extent such
distribution is required under section 401(a)(9) of the Code: and the portion of
any distribution that is not includible in gross income. Any portion of any
distribution which would be includible in gross income will be an eligible rollover
8
distribution if the distribution is made to an individual retirement account
described in section 408( a). to an individual retirement annuity described in
section 408(b) or to a qualified defined contribution plan described in section
401(a) or 403(a) that agrees to separately account for amounts so transferred.
including separately accounting for the portion of such distribution which is not
so includible.
(2) "Eligible retirement plan" is an individual retirement account described in
section 408(a) of the Code. an individual retirement annuity described in section
408(b) of the Code. an annuity plan described in section 403(a) of the Code. an
eligible deferred compensation plan described in section 457(b) of the Code
which is maintained by an eligible employer described in section 457(e)(1 )(A) of
the Code and which agrees to separately account for amounts transferred into such
plan from this plan. an annuity contract described in section 403(b) of the Code.
or a qualified trust described in section 401(a) of the Code. that accepts the
distributee's eligible rollover distribution.-, This definition shall also apply in the
case of an eligible rollover distribution to the surviving spouse.
(3) . "Distributee" includes an employee or former employee. In addition. the
employee's or former employee's surviving spouse is a distributee with regard to
the interest of the spouse.
(4) "Direct rollover" is a payment by the plan to the eligible retirement plan
specified by the distributee;
(C) Rollovers or Transfers into the Fund. On or after the effective date of Resolution
No. 2003-44. the fund will accept member rollover cash contributions and/or direct cash
rollovers of distributions for the purchase of permissive service credit under the Plan. as
follows:
(1 ) Direct Rollovers or Member Rollover Contributions from Other Plans.
The Plan will accept either a direct rollover of an eligible rollover distribution or a
member contribution of an eligible rollover distribution from a qualified plan
described in section 403(a) of the Code. from an annuity contract described in
section 403(b) of the Code. or from an eligible plan under section 457(b) of the
Code. which is maintained by a state. political subdivision of a state. or any
agency or instrumentality of a state or political subdivision of a state.
(2) Member Rollover Contributions from 401(a) Plans and IRAs. The Plan
will accept a member rollover contribution of the portion of a distribution from
qualified plan described in section 401(a) of the Code. or from an individual
retirement account or annuity described in section 408(a) or 408(b) of the Code.
that is eligible to be rolled over and would otherwise be includible in the
member's gross income.
9
Section 11.
That a new Section 4.03 of the Defined Benefit Plan and Trust for Employees of the City
of Winter Springs be created to read as follows:
4.03 Participant Account Balance Transferred from Money Purchase Pension
Plan. A Participant's account balance transferred from the Money Purchase Pension Plan
and Trust for Employees of the City of Winter Springs pursuant to Resolution No. 2003-
44. shall become an integral part of this Trust Fund: provided that such account balance.
plus interest at a rate equal to the interest rate on 30-year Treasury securities as published
in the Internal Revenue Bulletin determined as of the calendar month preceding the first
day of the Plan year. and effective October L 2003. a rate equal to the U.S. Treasury
Department long-term average rate published on the last day of the calendar month
preceding the first. day of the Plan year. or such other rate that may be approved by the
U.S. Treasury Department to replace the 30-vear Treasury bond rate as a benchmark for
calculating lump sum payouts from defined benefit plans. shall be part of the Accrued
Benefit payable to a Participant upon normal retirement. except as reduced in accordance
with Section 8.05.
Section 12.
That Section 5.02 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
5.02 Amount of Normal Retirement Pension/Accrued Benefit. The Annual
Benefit limitations of Article III apply to the determination of a Participant's normal
retirement pension and Accrued Benefit in the manner prescribed in Section 3.05(H).
(A) Normal Retirement Pension.
(1) Benefit Formula. A Participant's normal retirement pension equals 2% of
the Participant's Average Compensation multiplied by his Years of Accrual
Service for service prior to October L 2000. and 3% of the Participant's Average
Compensation multiplied by his Years of Accrual Service for service on and after
October 1. 2000. Such pension will be adiusted for any distribution in accordance
with Section 8.05. The maximum number ofYe,ars of Accrual Service taken into
account in the normal retirement pension is 30. counting forward from the date of
initial participation to include any purchased past service.
(2) Average Compensation. Average Compensation is the average of the
Participant's Plan Compensation for the Averaging Period in the Participant's
Compensation History which results in the highest Average Compensation. A
Participant's Compensation History is the Participant's entire period of
10
employment with the Employer. The Averaging Period is 3 consecutive
Compensation periods (or the entire period of employment, if shorter). A
Compensation period is the 12-month period ending on the last day of the Plan
Year.
(B) Accrued Benefit. Subject to the Annual Benefit limitations of Article III, a
Participant's Accrued Benefit is the normal retirement pension accrued by the Participant
under the accrual fomiula provided in this paragraph (B).
(1) Method of Accrual. As of any date, a Participant's Accrued Benefit is his
normal retirement pension calculated as of the determination date, based on the
Years of Accrual Service credited as of such date.
(2) Year of Accrual Service. Years of Accrual Service are Years of Service as
detennined under Section 8.06, including Years of Service completed prior to his
,participation-in theJ?lan. Any Employee who completed Years of Service prior to
the adoption' of Resolution No. 2003-44 but did not make contributions to this
Trust Fund or to the Money Purchase Pension Plan shall be credited with Years of
Accrual Service upon payment of the Required Participant Contributions due
under this Plan and the required participant contributions due under the Money
Purchase Pension Plan for such service. Years of Accrual Service also include
"Years of Qualified Service" . Years of Qualified Service means any or all years
of service performed by the Participant as an employee of the Government of the
United States. any State or political subdivision thereof or any agency or
instrumentality of any of the foregoing. other than the Employer. but only if all of
the following conditions are satisfied:
(a) the Participant makes a voluntary contribution to the Plan. in an amount
necessary to fund the benefit attributable to such Years of Qualified Service (as
determined by the actuary for the Plan. utilizing the actuarial definitions used for
?lan funding purposes) and which does not exceed the amount necessary to fund
the benefit attributable to such Years of Qualified Service;
(b) the Participant makes the voluntary contribution described in paragraph
(a) above. in one lump sum payment to the Plan prior to receiving credit for such
Years of Qualified Service:
, ( c) the Participant's Accrued Benefit is either 100% Nonforfeitable at the time
he makes the voluntary contribution described in paragraph (a) above or will
become 100% Nonforfeitable immediately after receiving credit for such Years of
Qualified Service; and
(d) the crediting of such Years of Qualified Service must not cause the
Participant to receive a retirement benefit for the same Years of Qualified Service
under more than one retirement plan.
11
~j y. t ioor onset arrangement. The Employer also maintains the Money Purchase
Ponsion Plan and Trust for Employees of the City of'.Vintor Springs, Florida (the "Money
Purchasc Plan") and the Participants in this Plan also participate in the Money Purchase
Plan. The Retirement Committee '.vill reduce the Participant's Accrued Benefit in this
Plan by the }I.ctuarial Equivalent benefit derived from the portion of the Participant's
vested account balance in the Money Purchase Plan attrioutable to employer
contributions and required participant contributions made pursuant to the terms of the
Money Purchase Plan (including any distributions and/or direct transfers made from the
account balance of such Participant prior to the b.enefit commencement date under this
Plan). . The interest rate used to determine the Actuarial Equivalent benefit derived from
the Money Purchase Plan is the rate specified in Section fl2 of this Plan. ,^.. mortality
assumption will not apply to determine the Actuarial Equivalent of distributions and/or
direct transfers made from the Participant's account balancc in the Money Purchase Plan
nor to detcrmine the Actuarial Equivalent benefit from the Participant's vested account
bulance in the Money Purchase Plan for the period prior to the benefit commencement
date under this Plan.
Section 13.
That Section 6.01 ofthe Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
6.01 Eligibility for Early Retirement Pension. A Participant who has received
credit for at least 10 Years of Accrual Service (as defined in Section 8.06)and has
attained age 55 may elect an early retirement pension. A Participant who separates from
service after satisfying the service requirement but not the age requirement may elect to
receive an early retirement pension upon satisfying the age requirement. In addition, a
Participant who has completed 25 Years of ,\ccrual Service (as defined in Section 8.06)
may elect an early retirement pension. A Participant's early retirement pension is his
Nonforfeitable Accrued Benefit payable at Normal Retirement Date without actuarial
reduction for early commencement but only if benefits commence on or after the
Participant attains age 55. If an eligible Participant elects to commence his early
retirement pension prior to attaining age 55, such Participant's early retirement pension is
the Actuarial Equivalent of his Nonforfeitable Accrued Benefit payable at age 55.
Section 14.
That Section 6.02 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
6.02 Payment of Early Retirement Pension.
(aA) If the present value of the Participant's early retirement pension does not exceed
$~3.500, the Trustee will automatically pay the early retirement pension in lump
12
sum, as soon as administratively practicable after the Participant's Separation from
Service or, if later, after the Participant satisfies the eligibility requirements for an early
retirement pension.
(bB) If the present value of the Participant's early retirement pension exceeds
$~3.500, the Trustee will pay the early retirement pension in the form and as of the
date elected by the Participant. A participant may elect to commence his early retirement
pension as of the first day of any month during the period he is eligible for the early
retirement pension and after he has separated from Service. If the Participant fails to
designate a distribution date, then the Trustee will commence payment of the early
retirement pension in accordance with Article X.
Section 15.
That Section 8.03 of the DefinedBenefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
8.03 Paym~nt of Deferred Vested Pension.
(aA) If the present value of the Participant's deferred vested pension does not exceed
$~3.500, the Trustee will automatically pay the deferred vested pension in lump sum,
as soon as administratively practicable following the Participant's Separation from
Service. In no event may the distribution occur later than the 60th day following the
close of the Plan Year in which the Participant attains Normal Retirement Age.
(bB) If the present value of the Participant's deferred vested pension exceeds
$~3.500, the Trustee will pay the deferred vested pension in the form elected by the
Participant. A Participant may elect to commence his deferred vested pension after the
Participant's Normal Retirement Date. If the Participant fails to elect a distribution date,
then the Trustee will commence payment of the deferred vested pension in accordance
with Article X.
Section 16.
That a new Section 8.05(B) of the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs be created to read as follows:
8.05 Vesting Schedule.
**********
(B) 100% Vesting of Required Participant Contributions. Each Participant is
immediately 100% vested with respect to his Required Participant Contributions. A
Participant is entitled to receive a return of his Required Participant Contributions.
13
contributed while a participant under the money purchase plan prior to October I. 2000.
upon termination of employment. together with simple interest at a rate equal to the
interest rate on 30-year Treasury securities as published in the Internal Revenue Bulletin
determined as of the calendar month preceding the first day of the Plan year. and
effective October 1. 2003. a rate equal to the U.S. Treasury Department long-term
average rate published on the last day of the calendar month preceding the first day of the
Plan year. or such other rate that may be approved by the U.S. Treasury Department to
replace the 30-year Treasury bond rate as a benchmark for calculating lump sum payouts
from defined benefit plans. in lieu of any other benefit under the Plan. The amount
received asa distribution by the Participant shall be used to reduce the accrued benefit. if
any. at his normal retirement date. Required Participant contributions contributed on and
after October I. 2000 are 100% vested and shall be incl~ded in the deferred vested
benefit payable to the Participant upon normal retirement date.
Section 17.
That subsections (B), (C), and (D) of Section 8.05 of the Defined Benefit Plan and Trust
for Employees of the City of Winter Springs be redesignated as subsections (C), (D), and (E)
respectively, and that the first sentence of redesignated Section 8.05(C) is amended as follows:
8.05(BC) Vesting Schedule. Subject to Section 8.05(A) and Section 8.05(B), a
Participant's nonforfeitable percentage of his Accrued Benefit equals the percentage in
the following schedule:
Section 18.
That Section 8.08 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
8.08 Included Years of Service - Vesting. For purposes of determining "Years
of Service" under Section 8.06, the Plan takes into account all Years of Qualified Service
credited to a Participant pursuant to Section 5.02(B) and all Years of Service an
Employee completes with the Employer except:
(aA) Any Year of Service completed before a Break in Service, unless the Employee
completes a Year of Service after the Break in Service. This Break in Service rule will
not operate to recredit any Year of Service disregarded under clause (bB).
(bB) Any Year of Service completed before a Break in Service if the number of the
Participant's consecutive Breaks in Service equals of exceeds the greater of 5 or the
14
aggregate number of the Years of Service prior to the Break. This Break in Service rule
applies only if the Participant is 0% vested in his Accrued Benefit derived from Employer
contributions at the time he has a Break in Service. Furthermore, the aggregate number
of Years of Service before a Break in Service does not include any Years of Service not
required to be taken into account under this exception by reason of any prior Break in
Service. If the Retirement Committee Retirement Committee disregards the Participant's
Years of Service under this exception, the Plan forfeits his pre-Break in Service Accrued
Benefit.
(eC) Any Year of Service before the Plan Year in which the Participant attained the
age of 18.
Section] 9.
That subsections (B) and (C) of Section 9.01 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
9.01 Preretirement Survivor Annuity - Eligibility. If a married Participant dies
prior to his annuity starting date, the Retirement Committee will direct the Trustee to
distribute to the Participant's surviving spouse a preretirement survivor annuity, unless
the Participant has a valid waiver election (as described in Section 9.02) in effect, or
unless the Participant and his spouse were not married throughout the one year period
ending on the date of his death.
**********
(B) Present Value Not Greater Than $~3.500. If the present value of the
preretirement survivor annuity is not greater than $~3.500, the Trustee will
automatically make the distribution in a lump sum, in lieu of the preretirement survivor
annuity. The distribution must occur on or before the annuity starting date.
(C) Surviving Spouse Elections. If the present value of the preretirement survivor
annuity exceeds $~3.500, the Participant's surviving spouse may elect to have the
Trustee commence payment of the preretirement survivor annuity as of the first day of
any month following the Participant's death, but not later than the applicable mandatory
distribution period described in Article X. A surviving spouse also may elect any form of
payment described in Article X, in lieu ofthe preretirement survivor annuity (other than a
joint and survivor annuity). In the absence of an election by the surviving spouse, the
Retirement Committee will direct the Trustee to distribute the preretirement survivor
annuity as soon as administratively practicable following the close of the Plan Year in
which the latest of the following events occurs: (1) the Participant's death; (2) the date the
15
Retirement, Committee receives notification of or otherwise confirms the Participant's
death; or (3) the date the Participant would have attained Normal Retirement Age.
Section 20.
That subsection (A) of Section 10.01 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
10.01 Form of Benefit. Subject to the requirements of Section 10.02, the
Retirement Committee will direct the Trustee to pay a Participant his Nonforfeitable
Accrued Benefit in a form permitted under Section 10.05. Annuity payments will
continue until the last scheduled payment coincident with or immediately preceding the
date of the Participant's death or, if applicable, the date of his survivor's death.
(A) Consent. A Participant must consent, in writing, to any distribution described in
this Article X if the present value of the Participant's Nonforfeitable Accrued Benefit
exceeds $~3.500, and the distribution commences prior to the Participant's attaining
Normal Retirement Age. Furthermore, the Participant's spouse also must consent, in
writing, to any distribution for which Section 10.02 requires the spouse's consent. For
purposes of the consent requirements under this Article X, if the present value of the
Participant's Nonforfeitable Accrued Benefit, at the time of any distribution, exceeds
$~3.500, the Retirement Committee will treat that present value as exceeding
$~3.500 for purposes of all subsequent Plan distributions to the Participant.
Section 21.
That subsection (B) of Section 10.02 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
10.02 Qualified Joint and Survivor Annuity.
**********
(B) Present Value Not Greater Than $~3.500. If the present value of the
Participant's Accrued Benefit is, not greater than $~3.500, the Trustee will
automatically pay the Participant's pension in a lump sum, in lieu of a qualified joint and
survivor annuity. The distribution must occur on or before the annuity starting date. The
consent requirements of this Article X do not apply to a Participant subject to this
paragraph.
Section 22.
16
That subsections (B) and (E) of Section i 0.03 of the Defined Benefit Pian and Trust for
Employees of the City of Winter Springs be amended as follows:
10.03 Commencement of Benefits. The Retirement Committee must direct the
Trustee to commence distribution of benefits in accordance with this Section 10.03,
subject to the mandatory distribution requirements of Section 10.06.
* * * * * * * * * *
(B) Distribution to Participant Who Separates from Service After Normal Retirement
Date. The Retirement Committee will direct the Trustee to commerice distribution to the
Participant:
(1) Present Value of Normal Retirement Pension Not Exceeding $~3.500.
.In lump sum, as soon as administratively practicable following the Participant's
separation from Service, but not later than the 60th day following the close of the
Plan Year in which that separation from Service occurs.
(2) Present Value of Normal Retirement Pension Exceeds $~3.500. In the
form and at the time elected by the Participant, as permitted under this Article X.
The Participant may elect to commence distribution as soon as administratively
practicable following separation from Service or as of the first day of any
subsequent month.
**********
(E) Death of the Participant. If the Participant had commenced distribution prior to
his death, the Retirement Committee will direct the Trustee to make distribution to the
Participant's Beneficiary in accordance with the distribution method in effect at the time
of death. If the deceased Participant had not commenced distribution, the Retirement
Committee will direct the Trustee to distribute the Participant's death benefit in
accordance with paragraph (1) or paragraph (2), whichever applies, subject to the
requirements of Article IX.
(1) Present Value of Death Benefit Does Not Exceed $~3.500. In lump
sum, as soon as administratively practicable following the date on which the
Retirement Committee receives notification of or otherwise confirms the
Participant's death.
(2) Present Value of Death Benefit Exceeds $~3.500. In the form and at
the time elected by the Participant or, if applicable by the Beneficiary, as
permitted under this Article X. Unless otherwise elected by the Participant and to
the extent permitted under Section 10.06, a Beneficiary may elect to commence
distribution of the Participant's death benefit as of the first day of any month
following the date the Retirement Committee receives notification of or otherwise
confirms the Participant's death. In addition to the other forms of distribution
11
'1.11 1.1' ...,'1"""1;}," 1. .1. .. ',,1 1,-.. " 1AA'
aVUllUO!e unut:r LfllS Arnele A, ana W lilt: eXlem pennHleo unoer ,:,ecnon 1 v.vo, a
Beneficiary may eject to receive the Participant's death benefit in monthly,
quarterly or annual installments over a 5 year period, unless the Participant
elected otherwise. In the absence of an election, the Retirement Committee will
direct the Trustee to distribute the Participant's death benefit in five annual
installment payments commencing as soon as administratively practicable
following the end of the Plan Year that the Retirement Committee receives
notification of or otherwise confirms the Participant's death.
Section 22.
That the first paragraph of Section 10.07 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
10.07 Distributions Under Domestic Relations Orders. Nothing contained in this
Plan will prevent the Trustee, in accordance with the direction of the Retirement
Committee, from complying with the provisions of a qualified domestic relations order
(as defined in Code g414(p)). The Retirement Committee may adopt any written
procedures relating to a qualified domestic relations order which the Retirement
Committee deems necessary for proper administration of the Plan. Thts~ Plan
specificallydoes not permits distribution to an alternate payee under a qualified domestic
relations order at any time, irrespective of whetheruntil the Participant has-attainee~ his
earliest retirement age (as defined under Code g414(p)) under the Plan. }.. distribution to
an alternate payce prior to the Participant's attainmcnt of earliest retircment age is
available only if: (1) the order specifies distribution at that time or permits an agreement
between the Plan and thc alternate payee to authorize an earlier distribution; and (2) if the
present value of the alternate payee's benefits undcr the Plan exceeds $5,000, and the
order requires, the alternate payee consents to any distribution occurring prior to the
Participant's attainment of earliest retirement age. Nothing in this Section 10.07 permits
a Participant a right to receive distribution at a time otherwise not permitted under the
Plan nor does it permit the alternate payee to receive a form of payment not permitted
under the Plan.
Section 23.
That the first paragraph of Section 11.05 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
11.05 Merger/Direct Transfers. The Trustee will not consent to, or be a party to,
any merger or consolidation with another plan, or to a transfer of assets or liabilities to
another plan, unless immediately after the merger, consolidation or transfer, the surviving
Plan provides each Participant a benefit equal to or greater than the benefit each
Participant would have received had the Plan terminated immediately before the merger
or consolidation or transfer. The Trustee possesses the specific authority to enter into
18
merger agreements or direct transfer of assets agreements with the trustees of other
retirement plans described in Code S401 (a), and to accept the direct transfer of plan
assets, or to transfer plan assets, as a party to any such agreement. If the Trustee accepts
a transfer of assets from other retirement plans described in Code 940 I (a) (other than the
Money Purchase Plan) on behalf of a Participant, the Trustee shall utilize such assets to
provide additional Accrued Benefits for such Participant. The Trustee possesses the
specific authority to accept a transfer of assets of all or any portion of a Participant's
account in the Money Purchase Plan.
Section 24.
. That this resolution shall supersede any and all conflicting provisions of any previously
adopted resolutions.
Section 25.
That should any section or provision of this resolution or any portion thereof, any
paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such
decision shall not affect the validity of the remainder hereof as a whole or part thereof other than
the part declared to be invalid. '
Section 26.
That this resolution shall take effect as of October 1, 2000.
PASSED and ADOPTED this 10th day of November
, 2003.
ATTEST:
19
Message
Page 1 of I
Andrea'Lorenzo-luaces
From: Jim Linn OIinn@lIw-law.com]
Sent: Monday, December 22,20035:32 PM
To: Andrea Lorenzo-Iuaces
Subject: Retirement Plan Revision
Andrea - the final resolution and retirement plan document, as amended and adopted on 11/10/03, are attached,
Please call me if you have any questions.
Jim Linn
James W, Linn
Lewis, Longman & Walker, P.A.
Post Office Box 10788
Tallahassee, FL 32302
(850) 222-5702
(850) 224-9242 (Facsimile)
THE INFORMATION CONTAINED IN THIS ELECTRONIC MESSAGE IS ATTORNEY WORK PRODUCT AND
ATTORNEY/CLIENT PRIVILEGED AND CONFIDENTIAL INFORMATION INTENDED ONLY FOR THE USE OF
THE INDIVIDUAL OR ENTITY NAMED ABOVE. IF THE READER OF THIS MESSAGE IS NOT THE
INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION OR
COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS
COMMUNICATION IN ERROR, PLEASE IMMEDIATELY NOTIFY US BY TELEPHONE OR E-MAIL AND
DELETE THIS MESSAGE. THANK YOU.
12/31/2003
DEEINED. BENEFIT PLAN AND TRUST
FOR'
EMPLOYEES OF THE
CITY OF WINTER SPRINGS',
November 10, 2003 Restatement
As Amended by Resolution 2003-44
Adopted by the City of Winter Springs City Commission
Novembed 0, 2003 '
--,
~Jv ~r ~1
-1">- lYlO(03
C:'0 ~~..-;'SS: f>-
t-t~~~'1
y
__J
TABLE OFCONTENTS'
ARTICLE I - DEFINITIONS
LO 1 "Plan"
1.02 "Employer"
1.03 "Trustee"
1.04 . "Plan Administrator"
1.05 "Retirement Committee!Y .
1.06 "Employee"
1_07 [Reserved]
1.08 "Participant"
1.09 "Beneficiary"
1.10 Compensation Definitions
Ul "Accrued Benefit"
U2 Actuarial Definitions and Related Rules.
Ll3 "Plan Entry Date"
U4 "Plan Year"
U5 "Effective Date"
1.16 "Nonforfeitable"
1.17" Accounting bate"
1.18 "Trust"
1.19 "Trust Fund"
1.20 ''Nontransferable Annuity"
121 [Reserved}
1.22 "Code"
1.23 "Service"
1.24 Definitions and Special Rules Relating to Hours of Service
1.25 "Disability"
1.1
1.1
1.1
U
1.1
U
U
Ll
1.1
1.1
1.2
13
13
13
1.4
1.4
1.4
1.4
1.4
1.4
1.4
1.4
1.4
1.4
1.4
1.6
ARTICLE II - EMPLOYEE PARTICIPANTS
2.01 Eligibility
2.02 Break in Service - Eligibility
2.03 Participation upon Re-employment
2.1
2.1
2.1
2.1
ARTICLE ill - EMPLOYER CONTRIBUTIONS
3.01 Amount
3.02 Determination of Contribution
3.03 Time of Payment ofContnbution
3.04 Nonvested Accrued Benefit
3.05 Limitation on Annual Benefit
3.06 Definitions - Article ill
3.07 Overall Limitations
3.1
3.1
3.1
3.1
3.1
3.1
3.3
3.6
ARTICLE IV - PARTICIPANT CONTRIBUTIONS 4.1
4.01 Participant Contributions 4.1
4.02 Participant Rollover Contnbutions 4.1
4.03 Participant Contnoutions Transferred from Money Pun:hase Pension Plan 4.1
ARTICLE V - NORMAL RETIREMENT BENEFIT 5.1
5.01 Normal Retirement Age/Normal Retirement Date 5.1
5.02 Amount of Normal Retirement Pension! Accrued Benefit 5.1
5.03 Normal Form of Benefit . 5.2
5.04 Late Retirement 5.2
ARTICLE VI - EARLY RETIREMENT PENSION 6.1
6.01 EligJoility for Early Retirement Pension 6. I
6.02 Payment of Early Retirement Pension 6.1
ARTICLE vn - DISABILITY PENSION 7.1
7.01 Disability Pension 7.1
ARTICLE VIII - DEFERRED VESTED PENSION - DEATII BENEFIT 8.1
8.01 Deferred Vested Pension 8.1
8.02 Amount of Deferred Vested Pension 8.1
8.03 Payment of Deferred Vested Pension 8.1
8.04 Pre-Retirement Death Benefit 8.1
8.05 Vesting Schedule 8.1
8.06 Year of Service-Vesting 8.2
8.07 Break in Service - Vesting 8.3
8.08 Included Years ofService-- Vesting 8.3
8.09 Disregard of Accrued Benefit 8.3 .
ARTICLE IX - PRERETIREMENT SURVIVOR ANNUITY '9.1
9.01 Preretirement Survivor Annuity - Eligibility 9.1
9.02 Waiver Election - Preretirement Survivor Annuity 9.1
9.03 Reduction of Pension Benefits 9.2
ARTICLE X - PAYMENT OF ACCRUED BENEFIT - OPTIONAL FORMS OF
PAYMENT 10.1
10.01 Form of Benefit 10.1
10.02 Qualified Joint and Survivor Annuity 10.2
10.03 Commencement of Benefits 10.2
10.04 WaiverElection - Qualified Joint and Survivor Annuity 10.4
10.05 OptionaL Forms of Distribution 10.4
10.06 Mandatory Distributions 10.5
10.01 Distributions Under Domestic Relations Orders 10.9
II
ARTICLE XI' - MISCElLANEOUS, PROVISIONS AFFECTING THE PAYMENT OF
BENEFITS 11.1
11.01 General ILl
11.02 Nonduplication of Benefits 11.1
I 1.03 [Reserved] ILl
11.04 No Disregard of Service ILl
11.05 MergerlDirectTransfers. I I.I
ARTICLE XII -OTIIER PROVISIONS AFFECTING BENEFITS 12.1
12.01 AssignmentorAlienation 12.1
12.02 [Reserved] 12.1
12.03 [Reserved] 12.1
12.04 Distnbution Upon Termination' of Trust 12.1
12.05 Overfunding 12. I
ARTICLE XIII - EMPLOYER ADMINISTRATIVE PROVISIONS 13.1
13.01 Infonnation to Committee 13.1
13.02 No Liability 13.1
13.03 Indemnity of Plan Administrator and Committee 13.1
ARTICLE XIV - PARTICIPANT ADMINISTRATIVE PROVISIONS 14.1
14.0 I Beneficiary Designation 14.1
14.02 No Beneficiary DesignationlDeath of Beneficiary, 14.1
14.03 Personal Data to Committee 14.1
14.04 Address for Notification 14.1
14.05 Notice of Change in Terms 14.2
14.06 Litigation Against the Tmst 14.2
14.07 Information Available 14.2
14.08 Appeal Procedure for Denial of Benefits 14.2
ARTICLE XV - RETIREMENT COMMITTEE - DUTIES WITH RESPECT TO
PARTICIPANTS' ACCRUED BENEFITS 15.1
15.01 Members' Compensation, Expenses 15.1
15.02 Term 15.1
15.03 Powers 15.1
15.04 General 15.1
15.05 Funding Policy 15.2
15.06 Manner of Action 15.2
15.07 Authorized Representative 15.2
15.08 Interested Member 15.2
15.09 Participant Records 15.2
15.10 Unclaimed AccmedBenefit-Procedure 15.2
ARTICLE XVI - TRUSTEE, POWERS AND DUTIES 16.1
16.01 Acceptance 16.1
III
16.02 Receipt of Contnbutions 16.1
16.03 Investment Powers 16.1
16.04 Records and Statements 16.3
16.05 Fees and Expenses From Fund 16.3
16.06 Parties to Litigation 16.3
16.07 Professional Agents 16.3
16.08 Distnbution Directions 16.4.
16.09 Third Party/Multiple Trustees 16.4
16.10 Resignation' 16.4
16.11 Removal 16.4
16.12 Interim Duties and Successor Trustee 16.4
16.13 Valuation of Trust. 16.5
16.14 Limitation on Liability - If Investment Manager, Ancillary Trustee CJr
Independent Fiduciary Appointed 16.5
16.15 Investment in Group Trust Fund / Combined Trost 16.5
ARTICLE XVII - INVESTMENT IN INSURANCE OR ANNUTIY CONTRACTS
17.01 Purchase of Life Insurance and Annuity Contracts
11-1
17.1
ARTICLE XVITI - MISCELLANEOUS
18.01 Evidence
18.02 No, Responsibility for Employer Action
18.03 Fiduciaries Not Insurers
18.04 Waiver of Notice
18.05 Successors
18.06 Word Usage
18.07 State Law
18.08 Employment Not Guaranteed
18.1
18.1
18.1
18.1
18.1
18.1
18.1'
18.1
18.1
ARTICLE XIX - EXCLUSIVE BENEFIT, AMENDMENT, TERMINATION
19.01 Exclusive Benefit
19.02 Amendment By Employer
19.03 Discontinuance
19.04 Full Vesting on Termination
19.05 Termination
19. I
19.1
19.1
19.1
19.2
19.2
Article A - Appendix to Plan and Trust Agreement
Execution Page-
19.3
19-.4
IV
Defined Benefit Plan and Trust for
Employees of the City of Winter Springs
The City of Winter Springs, a municipality incorporated under the laws of the State of
Florida, makes this Agreement with the Board of Trustees of the City of Winter Springs, as Trustee.
WITNESSETH:
The City of Winter Springsestflbl ishescontinues. within this Trust Agreement. a Plan forthe
admillisffiltioft and dist:rib~tioft of eOfltribtttioflS made by the Employer fer Ule..purpose-of providing
retirement benefits for eligible Employees. This Plan is an amended plan. in restated form. the
original plan being effective October 1. 1997 and this restated Plan is also effective October 1. 1997
(exceot to the extent otherwise provided herein). The provisions of this Plan apply solely to an
Employee whose employment with the Employer terminates on or after the Effective Date of the
Plan. If an Employee's employment with the Employer terminates prior to the Effective Date. that
Employee is not entitled to any benefit under the Plan.
Now, therefore, in consideration of their mutual covenants, the Employer and the Trustee
agree as follows:
ARTICLE I - DEFINITIONS
1.01 "Plan" means the retirement plan established by the Employer in the form of this
Agreement, designated as the Defined Benefit Plan and Trust for Employees of the City of Winter
Springs.
1.02 "Employer" means the City of Winter Springs.
1.03 "Trustee" means the Board of Trustees of the City of Winter Springs, or any succ~ssor
in office who in writing accepts the position of Trustee.
1.04 "Plan Administrator" is the Employer unless the Employer designates another person
to hold the position of Plan Administrator. In addition to his other duties, the Plan Administrator has
full responsibility for compliance with any reporting and disclosW'e rules applicable to the Plan.
1.05 "Retirement Committee" means the Board of Trustees of the City of Winter Springs,
or any successor who in writing accepts the position of the Retirement Committee.
1.06 "Employee" means any employee of the Employer. Individuals who perform services
for the Employer in any capacity other than as, an Emplovee; determined pursuant to the: books and .
records of the Employer (e.g.. independent contractors or leased employees within the meaning of
Code & 414(n). even ifsuch individuals are reclassified as Employees by any governmental agency
(other than the Employer) or iudicial decision). are not Employees for purposes of the Plan. and thus.
are not eligible to participate in the Plan. .
l.l
I.OT [Reserved}
1.08 "Participant" is an Employee who is eligible to be and becomes a Participant in
accordance with the provisions of Section 2.01.
1.09 "Beneficiary" is a person designated by a Participant or by the Plan who is or may
become entitled to a benefit WIder the Plan. A Beneficiary who becomes entitled to a benefit WIder:
the Plan remains a Beneficiary WIder the Plan until the Trustee has fully distributed his benefit to
him. A Beneficiary's right to (and the Plan Administrator's, the Retirement Committee's or a
Trustee's duty to provide to the Beneficiary) infurmation ordata concerning the Plan does not arise
until he first becomes entitled to receive-a benefit under the Plan.
1.10 Compensation Definitions. Any reference in this Plan to Compensation is areferenre
to the definition in this Section 1.1 0, wlless the Plan reference specifies a modification to this
definition. The Retirement Committee will take into account only Compensation actually paid forthe
relevant period.
(A) Total Compensation. "Total Compensation" means wages, salaries, and other amounts
received (whether or not paid in cash) for personal services actually rendered in the course of
employment with the Employer, but only to the extent included in gross income. This definition
includes, but is not limited to commissions, overtime pay and bonuses. With respect to the Plan
Years beginning prior to October I, 1998, Total Compensation does not include elective
contributions. With respect to Plan Years beginning on and after October 1, 1998, Total
Compensation includes elective contributions. Total Compensation also does not include:
(I) Employer contributions to a plan of deferred compensation to the extent, the
contributions are not included in the gross income of the Employee for the taxable year in
which contributed, on behalf of an Employee to a Simplified Employee Pension Plan to the
extent such contributions are excludible from the Employee's gross income, and any
distributions from a plan of deferred compensation, regardless of whet her such amounts are
includible in the gross income of the Employee when distributed.
(2) Other amounts which receive special tax benefits, such as premiums for group tenn
life insurance (but only to the extent that the premiums are not includible in the gross income
of the Employee), or contributions made by an Employer towards the purchase of an annuity
contract described in Code 9403(b) (whether or not the contributions are excludible from the
gross income of the Employee).
(B) Plan Compensation. Plan Compensation means Total Compensation described in Section
LIO(A), except that Plan Compensation includes elective contributions for all Plan Years. Plan
Compensation applies. to determinea-Participant's benefit fonnulaandAccruedBenefit under Article'
V.
(C) Elective Contributions. Elective contributions are amounts excludible from the Employee's
gross income under Code 99125, 402(e)(3), 402(h) or403(b), and contributed by the Employer, at
1.2
the Employee's election, to a Code ~40 I (k) arrangement, a Simplified Employee Pension, cafeteria
plan or lax-sheltered annuity. Elective contnbutions also include: (1) Compensation deferred undera
Code ~457 plan maintained by the Employer; and (2) Employee contributions "picked up" by the '
Employer and. pursuant to Code ~414(h)(2), treated as Employer contributions.
(D) Limitations on Compensation.
(I) Compensation Limitation. For any Plan Year beginning after December 3 I, 1995, the
Retirement Committee must take into account no more Plan Compensation than the
Compensation Limitation prescribed by Code g401 (a)( 17). TheCompensationLimitarion is
$150,000 for the 1996 Plan Year. ForPlan Years beginning after December 31,1996. the
Compensation Limitation is the adjusted dollar amount determined in accordance with Code,
g401 (a)(1 7).
The Compensatiorr Limitation in effect for any Plan . Year (or for any lZ-month
Compensation period) is the Compensation Limitation in effect at the beginning of that Plan
Y ear ( oTother lZ-month period). Fora Plan Y ear ( or other Compensation measuring period)
of/ess than 12 months, the Compensation Limitation is a prorated dollar amount, determined
by multiplying the Compensation Limitation by a fraction equal to the number of months in
the short period divided by 12.
(2) Average Compensation. When determining Average Compensation for a Plan Year
beginning after December 31,1995, Compensation for any prior Compensation period is
subject to the Compensation Limitation in effect for that prior Compensation period, using
$150,000 as the Compensation Limit in effect for any prior Compensation period.
1.1 I "Accrued Benefit" means the benefit determined under Article V.
1.12 Actuarial Definitions and Related Rules.
(A) Definitions.
(1) "Actuarial Equivalent" means a benefit of equal value computed by using the
following assumptions, subject to the requirements of this Section 1.12:
Pre-Retirement Interest: 8%
and Mortality: 1983 Group Annuity Mortality Table, Male Rates
Post-Retirement Set Back Two Years for Females
(2) "Present value" means the single sum Actuarial Equivalent of the Participant's
Accroed:Benefit
(3) "Actuary" means an enrolled actuary selected by the Retirement Committee to
provide actuarial services fOT the Plan.
1.3
(B) Interest Rate. When determining the amolUlt of a participant's distribution orthe present
value of the. Participant's Accrued: Benefit. the interest rate used to make-an Actuarial Equivalent
determination is the applicable interest rate specified in Section U2(A).
1.13 "Plan Entry Date" means the date(s), specified in Section 2.01.
1.14 ' "Plan Year" means the fiscal year of the Plan, a 12 consecutive month period ending
every September 30.
lJ 5 "Effective Date" of this Pian is October I, 1997.
1.16 "Nonforfeitable" means a Participant's or Beneficiary's unconditional claim, legally
enforceable against the Plan, to the Participant's Accrued Benefit.
1.17 " Accounting Date" is the first day of the Plan Year.
1.18 "Trust" means the separate Trust created lUIderthe Plan.
1.19 "Trust Fund" means all property of every kind held or acquired by the Trustee under
the Plan.
1.20 "Nontransferable Annuity" means an annuity which by its terms provides that it may
not be sold, assigned, discounted, pledged as collateral for a loan or security for the performance of
an obligation or for any purpose to any person other than the insurance company. If the Trustee
distributes an annuity contract, the contract.must be a Nontransferable Annuity.
1.21 [Reserved]
1.22 "Code" means the Internal Revenue Code of 1986, as amended.
1.23 "Service" means any period of time the Employee is in the employ of the Employer,
including any period the Employee is on an unpaid leave of absence authorized by the Employer
under a uniform, nondiscriminatory policy applicable to all Employees. "Separation from Service"
means a separation from Service with the Employer maintaining this Plan.
1.24 Definitions and Special Rules Relating to Hours of Service
. (A) Definition of Hours of Service. "Hour of Service" means:
(1) . Each Hour of Service for: which the Employer, either: directly or indirectly, pays:an.
Employee, or forwhich the Employee is entitled to payment, for the performance of duties.
The Retirement Committee credits Hours of Service under this paragraph (1) to the
Employee for the computation period in which the Employee performs the duties,
irrespective of when paid;
1.4
(2) Each Hour of Service for back pay, irrespective of mitigation of damages, to which
the Employer has agreed orforwhich.the,Employee has received an award., The Retirement
Committee credits Hours of Service under this paragraph (2) to the Employee for the
computation period( s) to which the. award or the agreement pertains rather than:. for the.
computation period in which the aw~ agreement or payment is made; and '
(3) Each Hour of Service for which the Employer, either directly or indirectly, pays an
Employee,. or for which the Employee is entitled to' payment (irrespective of whether the
employment relationship is terminated), foneasonsotherthan for the perfonnance of duties
during a computation period; such as leave of absence, vacation; holiday, sick leave, illness,
incapacity (including disabilitY). layoff, jury duty or military duty. The Retirement
Committee will credit no more than 501 Hours of Service under this paragraph (3) to an
Employee on account of any single continuous period during which the Employee does not
perfonn any duties (whetherornot such period occurs during a single computation period).
(4) Each Hour of Service the Employee is on an unpaid leave of absence authorized by
the Employer under a,unifonn, nondiscriminatory policy applicable to all Employees under
which the Employer specifically credits Hours of Service for such unpaid leave of absence.
The Retirement Committee will not credit an Hour of Service under more than one of the
above paragraphs. A computation period for purposes of this Section 1.24 is the Plan Year, Year of
Service period, Break in Service period or other period, as determined under the Plan provision for
which the Retirement Committee is measuring an Employee's Hours of Service. The Retirement
Committee will resolve any ambiguity with respect to the crediting of an Hour of Service in favor of '
the Employee.
(B) Method of Crediting Hours of Service. The Retirement Committee will credit every
Employee with Hours of Service on the basis of the "actual" method. For purposes of the Plan,
"actual" method means the determination of Hours of Service from records of hours worked and
hours for which the Employer makes payment or for which payment is due from the Employer.
(C) MaternitylPaternity Leave. Solely for purposes of determining whether the Employee incurs
a Break in Service under any provision of this Plan, the Retirement Committee must credit Hours of
Service during an Employee's unpaid absence period due to maternity or paternity leave. The
Retirement Committee considers an Employee on maternity or paternity leave if the Employee's
absence is due to the Employee's pregnancy, the birth of the Employee's child, the placement with the
Employee of an adopted child. or the care of the Employee's child immediately following the child's
birth or placement. The Retirement Committee credits Hours of Service under this paragraph on the
basis of the number of Hours of Service the Employee would receive if he were paid during. the,
absence period or, if the Retirement Committee cannot detennine the nuinber of Hours of Service the
Employee would receive, on the.basisof 8. hours per day during the absence period. The Retirement .
Committee will credit only the number (not exceeding 501) of Hours of Service necessary to prevent
an Employee's Break in Service. The Retirement Committee credits all Hours of Service described
in this paragraph to the computation period in which the absence period begins or, if the Employee
does not need these Hours of Service to prevent a Break in Service in the computation period in
1.5
which his absence period begins. the Retirement Committee credits theseHows of Service to the
immediately followingcomputation:period.. -
1.25 "Disability" means a physical or mental condition of aParticipantpermitting:such:
Participant to be eligible for disability benefits WIder the Employer's long,termdisabiIity progr.un_-
. . . . . . . . . . . * . * *
1.6
ARTICLE II - EMPLOYEE PARTICIPANTS
2.0 I Eligibility. Each Employee (other than an Excluded Employee) becomes a Participant
in the Plan on the first day of the month (if employed on that date) immediately following the date 6
months after his Employment Commencement Date. "Employment Commencement Date" means
the date on which the Employee first performs an Hour of Service for the,Employer.
(A) Excluded Emoloyee
(I) An Employee.is an Excluded Emoloyeeifhis customarv weekly emolovrnent with the.
Employer is less than 29 hours.' An Employee is an Excluded Employee if he is actively,
participatine (and "'benefitin~" within the meanine ofTreas. ReI!- & 1.41O(b)-3) in another
Qualified planmaintained by the Employer other than the Monev Purchase Pension Plan and.
Trust for Employees of the City of Winter Springs. Florida (hereinafter referred to as the
"'Money Purchase Plan").
(2) If a Participant has not incurred a Seoaration from Service but becomes an Excluded
Employee. then during the period such a Participant is an Excluded Employee. the.
Participant will not accrue a benefit under the Plan attributable to any period during which he
is an Excluded Employee. However. during such period of exclusion. the Participant.
without regard to employment classification. continues to receive credit for vesting under
Article VlII for each included Year of Service.
(3) If an Excluded Employee who is not a Participant becomes eligible to participate in
the Plan by reason of a change in emplovment classification. he will participate in the Plan
immediately ifhe has satisfied the eligibility conditions ofSectoin 2,0 I and would have heen'
a Participant had he not been an Excluded Employee during his period of Service.
Furthermore. the Plan takes into account all of the Participant's inclllded Years of Service
with the Employer as an Excluded Employee for PUl'Poses of vesting credit under Article
VIII.
(m Employees with Non-Contributing Service. Any Emplovee who completed Years of Service
prior to adoption of Resolution No. 2003-44. but did not make contributions to this Trust Fund or to
the Money Purchase Plan. shall be credited with Years of Accrual Service upon payment of the
ReQuired Participant Contributions due under this Plan and the reQuired particil'ant contributions due
under the Monev Purchase Plan for such service.
2.02 Break in Service - Eligibility. For purposes of participationin the Plan, the Plan does
not apply any Break in Service rule.
21
2.03 Participation upon Re-employment. A Partic.ipfu/t whose employment terminates will
re-enter the Plan as a Participant on the date of his re-employment.An Employee who satisfies the
Plan's eligibility conditions but who terminates employment with the Employer prior to becoming a
Participant will become a. Participant on the. later of the Plan Entry Date on which he would have
entered the Plan had he not terminated employment orthedate:ofhis reemployment.:. Any Employee ",
who terminates employment prior to satisfying the Plan's eligibility conditions becomes a Participant
in accordance with the provisions of Section 2.01.
. . * . . . . . . . . . . . .
2.2
ARTICLE m - EMPLOYER. CONfRlBUITONS
Part I. Determination of Employers Contributions.
3.01 AmoUllt-
fAL-The EJHfllayentla8e "NilI lHake die eaHtmnHi68s ftlEJtHFeS 1:'8 itms tile east ahhe Inmefifs
flftl'lideEl by tIlis PlaA. .The Employer: intends to make such contributions as are necessary to ftmd the
Plan on a sound actuarial basis. in accordance with aoolicable law.
~The Employer contributes to this Plan on the condition its contribution is not due.to amistake
of fact. The Trustee, upon written request from the Employer, must return to the Employer the
. amount of the Employer's contribution made by the Employer by mistake of fact. The Trustee will
not return any portion of the Employer's contribution under the, provisions of this paragraph more
than one year after the Employer. made the contribution by mistakeoffact. FurthermoTe.r the Trustee
will not increase the amount of the Employer contribution returnable under this Section 3.0 I forany
earnings attributable to the contribution, ,but the Trustee will decrease the Employer contribution
returnable for any losses attributable to it.
3.02 Determination of Contribution. The Employer, from its records and the reports of
the Actuary, will determine the amount of any contribution to be made by it to the Trust under the
terms of the Plan. In this regard, the Employer may place full reliance upon all reports, opinions,
tables, valuations, certificates and computations the Actuary furnishes the Employer.
3.03 Time of Payment of Contribution. The Employer shall make its contribution to the
Trustee not less frequently than in quarterly installments. However, contributions shall. be
considered timely if paid to the Trustee within 90 days of the date that such payments are due.
3.04 Nonvested Accrued Benefit. The Trustee will retain in the Trust all amounts
representing the nonvested Accrued Benefit of Participants who have terminated employment. The
Employer will not use forfeited benefits to increase the benefits of other Participants but instead will
use the amounts to reduce its contribution for future Plan Years.
Part 2. Limitations on Annual Benefits.
3.05 Limitation on Annual Benefit. A Participant's Annual Benefit payable at any time
within a Limitation Year may not exceed the, limitations of this Section 3.05, even if the benefit
formula under the Plan would produce a greater Annual Benefit.
(A) Commencement between ages 62 and 65. A Participant's Annual Benefit payable at an age
not less that 62 nor.greater than 65, may not exceed the lesser of $90,000 (or such larger dollar .
amount as the Commissioner of Internal Revenue may prescribe) or 100% of the Participant's
average Compensation for his high 3 consecutive Years of Service.
3.1
Delelled:.The Employ.ralon" wiD make ,
the contributions required to fund the cost
~~ provide<!_~_this Plan:.. .__~
(B) Commencement prior to age.62. Ifa.Participant'sAmmal Benefitconnnences priorto his .
attaining age 6~ the Retirement.Committee will adjust the' $90,000 (orthe largerluljusted dollar
amount) limitation of this Section J.05 t(} the Actuarial Equivalent of an Annual Benefit equal t(}
such dollar limitation connnencing at age 62... The.Actuarial Equivalent: underthe-innnediately
preceding sentence may not be less than $75,000 in the event a-Participant's Annuai.Benefit
commences at or after age 55. In the event a Participant's Annual,Benefit commences priort(}age55,
the Actuarial Equivalent will equal the-gn:aterof (I) theActuarial Equivalent of a $75;000 Annual.
Benefit commencing at age 55 or (2) the Actuarial Equivalent of a $90,000 (orlargeradjusted dollar
amount) Annual Benefit commencing at age.62. To determine the Actuarial Equivalent wuier:this
paragraph, the Retirement Committee will use an'interest rate assumption equal to the greaterof5%
per annum or the rate specified in Section 1.12 and the Aoolicable Mortality Table,
(C) Commencement after age 65. If a Participant's Annual Benefit commences after hi~attaining
age 65; the Retirement Committee_ will adjust the. $90,000 (or larger adjusted dollar amount)
limitation of this Section 3 .05 to the Actuarial Equivalent of an Annual Benefit equalto such dollar.
limitation commencing at age 65. To determine the Actuarial Equivalent under this paragraph, the
Retirement Committee will use an interest rate assumption equal to the lesser of 5% per annum or
the rate specified in Section 1.12 and the Applicable Mortality Table.
(D) [Reserved].
(E) Adjustment for Years ofServicelY ears of Participation Less Than 10. The mllXimum 1\.fUlual
Benefit$90.000 (or such larger adiusted dollar amount) limitation described in this Section 3.05
applies to a Participant who has completed at least 10 Years of Service with the Employer, for
IH:Jrposes ef the 1 OO~<' a'/erage Cempeflsatiofl limitatiofl aAd has completed at least 10 Years of
Participation in the Plan, fer pl:lrpeses of the dollar limitatiofl. If a Participant has less thafl 10 Years
of Service with the Employer at the time benefits commeflce, the Retirement Committee will
multiply his 100g<. a'/erage CompeAsatioA limitatioA by a fmction, the numerator of which is the
nl:lmber of Years of Service (including fractional years) '.vith the Employer eAd the denomiAetor of
.....hich is 10. If a Participant has less than 10 Years of Participation in the Plan at the time his benefits
commence, the Retirement Committee will multiply his dollar limitation by a fraction, the numerator
. of which is the number of Years of Participation (including fractional years) in the Plan and the
denominator of which is 10. The reductions described in this paragraph will not reduce a
Participant's maximum f.nAtilll Benefitdollar limitation to less than one-tenth of the maximum
A.-moo! Benefitdollar limitation determined without regard to the reductions.
(F) AlternateF orms of Payment. If theTrustee pays the Participant's benefit in a form other than
an Annual Benefit, the benefit paid may not exceed the Actuarial Equivalent of the maximum
Annual Benefit payable as a straight life annuity. To determine the Actuarial Equivalent under this
paragraph, the Retirement Committee will use an interest rate assumption equal to the greater of 5%
per annum-or the ratespecifJed in Section 1.12 and the Applicable Mortalitv- Table.
(G) Adjustments to Dollar Limitation. Any adjustment to the dollar limitation of this Section 3.05
does not take effect until the first day of the calendar year for which the Commissioner of Internal
Revenue publishes the adjustment. The new limitation will apply to the Limitation Year ending with
3.2
or within the calendar year for which the Commissioner ofIntemal Revenue makes the adjUSbnent.
(H) Application of Limitations_ A Participant's Accrued Benefit payable at any ti~ may not '
exceed the applicable limitation under this-Section 3.05~ The Retirement Committee: will apply the
limitations of this Section 3.05 (as reduced. if applicable. by Section 3.07) to the calculation of the
Participant's normal retirement pension prior to detennining the Participant's Accrued Benefit.
3.06 Definitions - Article ID. The definitions in this Section 3.06 apply to the limitation
provisions of PartZ, of Article ill. Forpmposes.of ArticleIII., the following terms mean:
(A) General Definitions.
(I) Annual Benefit. The Participant's retirement benefit (including any portion of the'
Participant's retirement benefit payable'to an alternate payee'undera qualified domestic
relations order satisfying: the requirements' of- Code, ~414(p))' attributable to Employer'
contributions payable in the fonn of a straight life annuity ora qualified joint and survivor
annuity. with no ancillary benefits (other than the survivor annuity).
(2) Compensation. Total Compensation, as determined under Section 1.I0(A).
(3) Limitation Year. The Plan Year. If the Employer amends the Limitation Year to a
different 12 consecutive month period, the new Limitation Year must begin on a date within
the Limitation Year for which the Employer makes the amendment,. creating a short
Limitation Year.
(4) Annual Addition. Annual Additions are the following amounts allocated on behalf of
a Participant for a Limitation Year, under a defined contribution plan maintained by the
Employer: (i) all Employer contributions; (ii) all forfeitures; arid (iii) all Employee
contributions. Except to the extent provided in Treasury regulations, Annual Additions
include excess contributions described in Code S401 (k), excess aggregate contributions
described in Code S40 1 (m), irrespective of whether the plan distributes or forfeits such
excess amounts. Excess deferrals under Code S402(g) are not Annual Additions unless
distributed after the correction period described in Code S402(g). Amounts allocated after
March 31, 1984, to an individual medical account (as defined in Code S415(1)(2)) included as
part of a defined benefit plan maintained by the Employer also are Annual Additions.
Furthermore. Annual Additions include contributions paid or accrued after December 31,
1985, for taxable years ending after December 31, 1985, attributable to post-retirement
medical benefits allocated to the separate account of a key employee (as defined in Code
~419A(d)(3)) under a welfare benefit fund (Code ~419(e))maintained by the Employer. Fora
Limitation Year, the Annual Additions allocated on behalf of any Participant, to'all defined
contribution plans-maintained by the Employer, may not exceed the Maximum-Permissible'
Amount. The "Maximum Permissible Amount" is the lesser of (1) $30,000 (or, if greater,
one fourth of the defined benefit dollar limitation$30,OOO amount as adiusted under Code
S415(b)( 1 )(;\)4). or (II) 25% of the Participant's Compensation for the Limitation Year. If
there is a short Limitation Year because of a change in Limitation Year, the Retirement
3.3
CommitteewiJl multipIythe$30,OOO Iiinitation (orIargedimitation)onAnnuaI Additionsby .
the following fiaction:
Numberof.monthsin.tre short Limitation: Year',
12",
( 5) Year af 8en'iee. A PIaH Year eu~ "lfhieR- BHERtfJleyee e.)"'IJd~~ et"Je!t';t-j ;999
, Mat:lfs af Armlicable Mortality Table. TheApplicclble Mortality Table means the mortality
table specified in Code & 417( e)(3) and set forth in Revenue Ruling 95-6 ( or anv auolicable,
subsequent pronouncement issued by Internal ReverIUe:'Service~ '
(6) Year of Participation. A Year of Participation is a Year of Accrual Service, as
determined under Section 5.02, but only if the' Plan is in' ex istence for such Year of
Participation and the Participant is a Participant in the Plan at least one day in that Year of
Participation. If the Participant receives creditforonlya partialYearofparticipation'under
Section 1.11, he will receive credit for only a partial year for purposes of the limitations of
this Article m. For any other defined benefit plan ta,ken into account, A Year of Participation
is each accrual computation period for which: (a) the Participant receives credit for at least
the number of hours of service (or period ofservice', if the plan uses elapsed time) necessary
to accrue a benefit for that accrual computation period; and (b) the eligibility conditions of
the plan include the Participant as a participant in that plan on at least one day ofthat accrual
computation period. If the Employee satisfies the conditions described in clauses (a) and (b),
he will receive credit for a Year of Participation (or a partial Year of Participation. if
applicable) equal to the amount of benefit accrual s,ervice (computed to fmctional parts of a
year) credited under that plan for the accrual computation period. A Participant receives
credit for a Year of Participation under another d,~fined benefit ,plan only if the plan was
established no later than the last day of the accrual computation period to which theY ear of
Participation relates. The Participant will not receive' credit for more than one Year of
Participation under this pamgraph (6) with respect to the same 12-month period.
(7) Employer. The Employer that adopts this Plan and any employers aggregated with the
Employer pursuant to Code SS414(b), 414(c), 414(m) or 414(0). Solely for purposes of
applying the limitations of this Article Ill, the Retirement Committee will detennine the
aggregated employers by modif)'ing Code SS4l4(b) and (c) in accordance with Code
~415(h).
(8) Defined Benefit Plan. A retirement plan which does not provide for individual
accounts for Employer contributions. The Retirement Committee must treat as a single plan
all defined benefit plans maintained by the Employer, whether or not terminated.
(9) 'Defined Contribution: Plan. A i'etin:rnent plan whiCh. provides.for an individual
account for each participant and for benefits based solely on the amount contributed to the
participant's account, and any income, expenses, gains 'and losses, and any forfeitures of
accounts of other participants which the' plan may aliI ocate to such participant's account. The
Retirement Committee must treat as a single plan all defined contribution plans maintained
3.4
by the Employer. whether or not terminated. For purposes of the limitations of this Article
ill, the Retirement Committee. will treat employee contributions made. to a defined benefit
plan (including this-Plan) maintained by the Employer as a separate defined contribution,
pian. The Retirement Committee also will treat as adefinedcontribution-planan:individual
medical account (as definedin Code_~415(1)(2)) included as;partof a defined benefit plan.
maintained by the Employer and. for,taxableyearsendingafterDecember.31.1985. a welfare
benefit fund under Code: ~4-19( e) maintained.by the Employer;~o the extent there:are:post-.
retirement medical benefits allocated to the separate.account of a key employee ( as ~in
Code ~4-19A(d)(3))_
(B) , Definitions Relatingto Defined Benefitand DefinedContributionPlan IimitatioIL
(I) Defined Benefit Plan Fraction, The defined benefit planfuction isthe.Participant's
Projected Annual Benefit divided by the Overall DBJimitation:
(a) The "Projected Annual Benefit" means the annual retirement benefit (adjusted to an
actuarially equivalent straight life annuity if the plan expresses such benefit in a form other
than a straight life annuity or qualified joint and survivor annuity) of the Participant under the
terms of the defined benefit plan assuming he continues employment until his normal
retirement age (or current age, iflater) as stated in the defined benefit plan, his compensation
continues at the same rate as in effect in the Limitation Year under consideration until the
date of his normal.retirement age and all other relevant factors used, to determine benefits
under the defined benefit plan remain constant as of the current Limitation Year for all future
Limitation Years.
(b) The "Overall DB Limitation" is the lesser of (i) 125% of the dollar limitation in effect
under Code ~415(b)(1 )(A) for the Limitation Year, or (ii) 140% of the Participant's average
Compensation for his high '3 consecutive Years of Service. The Overall DB Limitation
assumes the Participant has at least 1 0 Years of Service or the Retirement Committee will
have at least 10 Years of Service at Normal Retirement Age. To determine whether the
Participant will have at least 10 Years of Service, the Retirement Committee may include the
year in which the Participant reaches Normal Retirement Age, but only if it reasonable to
anticipate he will receive credit for a Year of Service in that year. If a Participant fails to
satisfy this 10 Years of Service requirement, the Retirement Committee will reduce the
denominator of the Participant's Overall DB Limitation in the same manner as described
under Section 3.05(E) with respect to reductions for less than 10 Years of Service. If the
Participant's Current Accrued Benefit (as described in Section 3.05) exceeds the applicable
dollar limitation in effect under Code ~415(b)( I )(A), the Participant's Overall DB Limitation
may not be less than 125% of that Current Accrued BenefiL
(2) Defined Contribution Plan Fraction. The defined contribution. plan. fraction. is. the . ,
Participant's Aggregate Annual Additions divided by the Overall DC Limitation.
(a) The "Aggregate Annual Additions" equal the sum, as of the close of the Limjtation
Year, of the Annual Additions to the Participant's Account under the defined contribution
3.5
plan(s).
(b) The "Overall- DC Limitation" is the sum of the lesser of the, following amounts-
detemrinedfortheLimitation: Yearand fureachpriorYearofService.with.the:Employer:(i)
125% of the dollar limitation in effectunder Code:~415(c)(I)(A)for the.Limitation.:Year:
(determined without regard to the special dollar limitations for employee stock ownership
plans). .or (ii) 35% of the Participant's Compensatiorr.furthe:Limitation:Year~
3.07 OVefllll LiHHteaetlS. .
(A) Defiftetl CeMrHltttieft PIM Limitfltieft. If ilie EiHpleyet' t1tltifttfl:ins Ii tlefiflea eeftB1BtKiefl pIM..,
(os tlefifletl ift8eerieft3.0e), erRftS eyerffloifltflifteso sehfletl eefltriBtitiefl fllofl "';RiaR tRe ~ffI,,18Yet'
h8S teRflift8tee, theft the stlfflef the eeHflee beflekt ",18ft fFaetiefl 8fte the eefifletl 8efltfllnltfeft ",18ft
fuletien fer lHIY PaftieipeHt fer wty LimitfHiieft Year. HIUSt flat exeeeal.O.. The.Eatf'leyet'\';i11 Fe9Hee-
the J'ftl:ieele8B1lflttal, 8eftekt ttluier this Plftft te the ellteRtseoosrwyte satisfy this 1.0 liHBmaea . .
. . * . .. .. * * . . * * *
3.6
ARTICLE N - P ARTICIP ANT CONfRIBUTIONS
4.01 ,Plirtiei~8flt Cefltriblitiens. The PI8fl dees Bet peffflitfter. feEjliire P9ftiei~8flt .
eootrilnt!:ieH3, Required Participant Contributions. The Plan did not oemrit norreauireParticioant
Contributions prior to October I. 2000. Effective October I. 2000. each Participant is reauired to
contribute 3% of Compensation to the Plan. which contribution shall be considered the Reauired
Particioant Contn1mtion: Thereauired participant contribution- shall be- deducted' fiuJn'each
Participant's Compensation whenever such Comvensation. is oaid. and remitted to the Trustee.
Required participant contributions shall be considered an Employer '''pick...up" contribution and shall
be designated as employer contributions mmmantto Section 4]4{h) ofthdnternalRevenue.Code..
contingent upon the contributions being excluded from. theParticioant' s gross, income for federal
income tax purposes. For all other DUrooses of this PI~ such contributions shall be considered .
Particioant contributions.
4,02 ' PaftieipeRt. Relle.{et"C8HtRlnlfieB5~ The Plm. flees aatf'efftJit-PllFiiai"IlBt'f8118\'e!" .
eefltributieHsDirect Transfers of Eligible Rollover Distributions,
(A) General. This section applies to distributions made on or after October I. 2002.
Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee's
election under this section. a distributee may elect. at the time and in the manner prescribed by the
board. to have any portion of an eligible rollover distribution paid directly to an eligible retirement
plan specified by the distribute in a direct rollover.
(m Definitions.
(I) "Eligible rollover distribution:' is any distribution of all or any portion of the balance'
to the credit of the distributee. except that an eligible rollover distribution does not include:
any distribution that is one of a ,series of substantially eaual periodic payments (not less
freauently than annually) made for the life (or life expectancy) of the distribute or the ioint
lives (or ioint life expectancies) of the distribute and the distributee's designated Beneficiary.
or for a specified period often years or more: anv distribution to the extent such distribution
is required under section 40] (a)(9) of the Code: and the portion of any distribution that is not
includible in gross income. Any portion of any distribution which would be includible in
gross income will be an eligible rollover distribution if the distribution is .made to an
individual retirement account described in section 408(a). to an individual retirement annuity
descnbed in section 408(b) or to a aualified defined contribution olan described in section
401(a) or 403(a) that agrees to separately account for amounts so transferred. including
separately accounting for the portion of such distribution which is, not so includible. .
(2) ""Eligible retirement plan" is an individual retirement account described in section
408( a) of the Code. an individual. n..>tirement annuity described in section 408lb} of the, Code. .
an annuity plan described in section 403(a) of the Code. an eligible deferred comoensation
plan described in section 457(b) of the Code which is maintained by an eligible employer
described in section 457(e)(1)(A) of the Code and which agrees to separately account for,
amounts transferred into such plan from this Plan. an annuity contract described in section
4.1
. i ~Parricipant (: ontributions.- The-:
: Plan does 001 permit oor I'CllpIire I
p....ti,;~~d ,,,ubib.4R-. _._._J
403(b) of the Code. or a aualified trust descn'bed in section 40 I (a} of the Code. that accents
the distributee's eligible rollover distribution. This definition shalLalso apply in the case.of
an elil!ible- rollover distribution to the- surviviJt2.s00use:-
(3) "Distributee" incl udes an employee or formeremoloyeec.Jnaddition.theenwloyee!s '
or former emplovee's surviving spouse is a distributee.withregardto the. interest of the
spouse;
(4) "Direct rolloveeis a oayment bv the Plan to the eligible retirement plansoecified bv
the distnlnrtee.
(c) Rolloversor Transfers into the Fund. On orafter-the effective date of Resolution-No; 2003<-
44. the fund will acceot member rollover cash contnbutions and/or direct cash. rollovers of
distributions for the purchase of permissive service credit under the Plan. as follows:
(l) Direct Rollovers or Member Rollover Contributions from Other Plans. The Plan will
accept either a direct rollover of an eligible rollover distribution or a member-contribution of
an eligible rollover distribution from a Qualified plan described in section 403(a) of the Code.
from an annuity contract described in section 403(b) of the Code. or from an eligible plan
under section 457(b) of the Code. which is maintained by a state. political subdivision of a
state. or any agency or instrumentality of a state or political subdivision of a state.
(2) Member Rollover Contributions from 40 l( a) Plans and mAs. The Plan will accept a
member rollover contribution of the portion of a distribution from Qualified plan described in
section 40 l( a) of the Code. or from an individual retirement account or annuity described in
section 408( a) or 408(b) onhe Code. that is eligible to be rolled over and would otherwise be
includible in the member's gross income.
4.03 Participant Account Balance Transferred from Money Purchase Pension Plan. A
Participant's account balance transferred from the Money Purchase Pension Plan and Trust for
Employees of the City of Winter Springs pursuant to Resolution No. 2003.44. shall become an
, integral part ofthis Trust Fund: provided that such account balance. plus interest at a rate equal to the
interest rate on 30-yearTreasury securities as published in the Internal Revenue Bulletin determined
as of the calendar month preceding the first day of the Plan year. and effective October 1. 2003. a
rate eaual to the U.S. TreasurvDeoartment long~term average rate published on the last day of the
calendar month preceding the first day of the Plan year. or such other rate-that may beaomovedby
the. U.S. Treasurv Department to replace the 3D-year Treasurv bond rate as a benchmark for
calculating lump sum payouts from defined benefit plans. shall be part of the Accrued Benefit
pavable to a Participant upon normal retirement. exceot as reduced in accordance with Section 8.05.
* * * * * * . * * . . .. ~ .
4.2
ARTICLE V - NORMAL RETIREMENT BENEFff"
5.01 Nonnal Retirement AgeINonnaJ Retirement Date.
(A) NonnalRetirementA~ An Employee attains Normal RetirementAge:on the.date.heattains
age 65.
(B) Normal Retirement Date.. A Participant's Normal Retirement Date is the filSt day of the
month following: tbe:Participant's. attainment.of Normal Retirement Age;.. Each Participant who
retires on orafterattainingth~ Normal Retirement: Date: receives a nomml.dUcue&U pemion;"
5.02 AmOWlt of Normal Retirement Pension/Accrued, Benefit. The Annual Benefit
limitations of Article.m apply to thedetennination of a Participant's normal retirement pension and
AccruedBenefit in the manner prescribed in Section 3.05(H).
(A) Normal Retirement Pension.
(I) Benefit Fonnula.. A Participant's normal retirement pension equals 2% of the
Participant's Average Compensation multiplied by his Years of Accrual Service for service
prior to October 1. 2000. and 3% of the Participant's Average Compensation multiplied bv
his Years of Accrual Service for service on and after October 1. 2000. Such pension will be
adiusted for any distribution in accordance with Section 8.05. The maximum number of
Years of Accrual Service taken into account in the normal retirement pension is 30. counting
forward from the date of initial participation to include any purchased past service.
(2) A verage Compensation. Average Compensation. is the average of the Participant's,
Plan Compensation for the Averaging Period in the Participant's Compensation History
which results in the highest Average Compensation. A Participant's Compensation History is
the Participant's entire period of employment with the Employer. The Averaging Period is 3
consecutive Compensation periods (or the entire period of employment, if shorter). A
Compensation period is the 12-month period ending on the last day of the Plan Year.
(B) Accrued Benefit. Subject to the Annual Benefit limitations of Article Ill, a Participant's
Accrued Benefit is the nonnal retirement pension accrued by the Participant under the accrual
formula provided in this paragraph (B).
(1) Method of Accrual. As of any date, a Participant's Accrued Benefit is his normal
retirement pension calculated as of the determination date, based on the Years of Accrual
Service credited as of such date.
(2) Year of Accrual Service.. Years of Accrual Service are Years of Service as . ,
determined under Section 8.06, including Years of Service completed prior to his
participation in the Plan. Any Emplovee who comoleted Years of Service prior to the
adoption of Resolution No. 2003-44 but did not make contributions to this Trust Fund or to
the Monev Purchase Pension Plan shall be credited with Years of Accrual Service upon
5.1
payment 'of the Required Participant Cantnbutians due under this Plan and the reauired
participant cantributians due under the Manev Purchase Pensian Plan far such service.
Yeavs 'of Accrual Service-ills<> include-"Years ofOualif"ted Service!'. Yeavs of OuaIif"ted
Service means anv or all vears of service oenonnoo by tire Particimmt asan employee of the
Gavernment-of the United States. anv State or ooliticaJ subdivision thereof or any agency or
instrumentality of any 'of the foree,.oing. other than the Emplaver. but anlv if all of tiN::
followiVlt! COnd~tiOi1S are satisfied: . .
la) the Participant makes a volulJltaD')' contnlrutioo to the Plan. in an amount
necessary to - fund the benefit. attributable to such Years of OuaIified Service .~ as
determined bv the.actuarv for thePlan..lllili7i~ the actuarial definitions used for plan
funding puroases) and which does nat exceed the amaunt necessarv to fund the
benefit attnoutabJe ta such Years of Qualified Service:
lb) the Participant makes the voluntary contrilnJtj01l described in parngraph (a)
above. in 'one IUI11D sum pavment ta the Plan oriorta receivilU! credit for such Years
of Qualified Service;
Ie) the Participant's Accrued. Benefit is either 100% Nonforfeitable at the time he
makes the valuntary cantributian described in parngrnoh (a) above 'or will become
100% Nonforfeitable immediately after receiving credit for such Years of Qualified
Service: and
(d) the crediting of such Years 'of Qualified Service must not cause the
,Participant to receive a retirement benefit far the same Years afOualified Service
under more than one retirement Dlan.
(3). Floor offset affilllgement.' The Employer also maintains the MOney Purehase Pension,
Plan and Trust for Employees of the City of Winter S~rings, Florida (the "Money Pl:Ifehase
Plan") and the Participants in this Plan also ~artiei~ate in the Money Purchase Plan. The
Retirement Committee will redl:lce the Participant's f.cerued Benefit in this Plan by the
.^.etl;larial Et)l:Ii,'alent benefit derived from the portion of the Participant's vested aceount
balanee in the Money Pur-ehase Plan attribl:ltable to employer contributions and required
participant contribHtions made pl:lfSHant to the terms efthe Money Pl:Irehose Plan (inell:lding
&BY disfribtitiens and/or direct tFll:RSfem made frem the aeeel:lftt blllanee of sHeh Partieiflant
,marta the 9eHefit eaRIfAeReeRIeflt Elate HRElerthis PlllfI). The iRteFest FIlte HseEl ta deteRHifle
the Aetuarial Eql:livalent benefit derived fr-tlm the MORey Pl:Irehase Plan is the FIlte specified
in Sectian 1.12 of this Plan. f. mortality ossl:lmption will net apply to eetermine the Aeworial '
EEjui',aleHt of distril'llltioHs aHdlor direct tFllHsfers made, frem the PartieiJ'laflt's aeootmt
balanee in the },{oRey Pl:Irehese Plan nor to E1etermine the :\ettlOnel EEluivaleRt benefit fftlm
tha PaJtieip8J1t's 'lasted aeeol:lntealanoo in the Maney Purehase Plan fer the fleried prier to .;
the beRefit eommeReemeRt Elate llflder this PlaR. '
,. .--
. . . .. .. ~ . . ... . . . . .. .. ... ..,....... .
5.03, Normal Form 'of Benefit. The Retirement Committee will. ~ompute a Participant's.
narmalretirernent pension in theronn of a straight life annuity. The Trustee willpay the Participant's
5.2
Deleted: (3) , Fioor-offset ammgemenL'
The Employer also maintains the Money .
Purchase Pension Plan and Trust fur
Employees oflhe City ofWimcrSprings,
Florida (the "Money Purchase Plan") and
the Participants in this Plan also
-participate in the Money Purchase Plan.
The Retirement Comminee will reduce the
Participant's Accrued Benefit in this Plan
by the Actuarial Equivalent benefit
derived from the ponion of the
Participant's vested account balance in the
Money Purchase Plan annbutable to
employer contributions and required
participant contnbutions made pursuant to
the 'erms of the Money Purchase Plan
(including any distributions and/or direct
transfers made from the account balance
of such Participant prier to the benefit
commencement date under this P~). The
interest rate used to detennine the
Actuarial Equivalent benefit derived from
the ~oney P.urchase Plan is the rate
specified in Section -J. 12 oflhis Plan. A
mortality assumption will not apply to
detennine the Actuarial Equivalent of
distnbuiions and/or direct transfers made
from the Participant's account balance in
the Money Purchase Plan nor to detennine
the Actuarial Equivalent benefit,from the
Participant's vested account balance in the - ,
Money Purch:r;e Plan for the period prior
to the benefit commencement date under
this Plan.'
normal retirement pension in accordance with Article X.
5.04 Late Retirement~
(A) Actuarial Adjustmel1t for Delayed Commencement/Accrual of Benefits After Normal
Retirement Date. A benefit commencing after Normal Retirement Date is the Actuarial Equivalent of
the Participant's Accrued Benefit payable as of the laterofNormal RetirementDat~orthe last day of
the prior Plan Year. A Participant continues to accrue benefits after his Normal Retirement Date if
the Participant's Accrued Benefit would increase because of additional Service or Compensation. A
Participant's Accrued Benefitas of the end of each Plan Yearfollowing.his Normal RetirementDate
is the greater of: (1) the normal retirement pension determined-under the PI~ taking,into account
Service and Compensation credited after Normal Retirement Date; or (2) the Accrued Benefit.
determined as of the later of Normal Retirement Date or the end of the prior Plan Year, actuarially
adjusted for late retirement.
. . . . . . . . . . . . . . .
5.3
ARTICLE. VI _. EARLY RETIREMENT PENSION
6.01 Eligibility for Early RetirementPension. A Participant who has-received credit for at
leaSt 10 YeaIS ofAeemal Service-Cas defined in Section8.06)amihas attained.age:.55'ma.y e1ectan
early retirement pension. A Participant who separates from service after satisfying: the. service,
requirement but not the age requirement may elect to receive an early retirement pension upon
satisiYing the agerequire:ment.ln addition. a Participant who has completed 25 Years of .....eeRJBI.
Service (as defined in Section 8.06) may elect an' early retirement pension. A Participant's early
retirement pension'ischis Nonforfeitable AccroedBem:fitpayableatNonna1:RetirementDatecwithout.
actuarial recluctiorrforearlycmmn~u"Q..eul butonly'~b'-Ullul1~w.e.orroraf'lI:l".dIC:"Pmti..,;p4IJ1 ,
attains age 55. If an eligible Participant elects- to commence.ms.early retirement pension-prior to
attaining age 55. such Participant's early retirement pension is the Actuarial Equivalent of his
Nonforfeitable Accrued Benefit payable atage 55.
6.02 Payment of Early RetirementPensiolt_.
(aA) If the present value of the:Participant's early ,i:ti.r.......u1 pemion:doesoot c:x.ceed.~}.500..
the Trustee will automaticallv pay the early retirement pension in lump sum, as soon as
administratively practicable after the Participant's Separation from Service or. if later, after the
Participant satisfies the eligibility requirements for an early retirement pension.
(bm If the present value of the Participant's early retirement pension exceeds $~3.500, the
Trustee will pay the early retirement pension in the form and as of the date elected by the Participant.
A participant may elect to commence his early retirement pension as of the first day of any month
during the period he is eligible for the early retirement pension and after he has separated from
Service. If the Participant fails to designate, a distribution date, then the Trustee will commence
payment of the early retirement pension in accordance with Article X.
* * * * * * * * * * * * * * *
6.1
ARTICLE VIr - DISABILII'YPENSION,
7.01 DiSability. PensiOlL The. PIan::.does not provide. adisalnlity: pension..' Disability
benefits, are.provided.under: the Employer's long. term disability program.:
. . . .. . . . . . '. .. ..
7.1
ARTICLE vm - DEFERRED VESTED PENSION - DEAlH BENEFIT
8.0 I Deferred Vested Pension. A Participant who. prior to hisNormaJ Retirement Date,
terminates employment for any reason other than death, or eligibility foran early retirement pension,
will receive a deferred, vested pension (asswning the Accrued Benefit of such Participant is not
entirely forfeitable).
8.02 Amowtt of Deferred Vested Pension. The Participant's deferred vested pension is the
Actuarial Equivalent of his Nonforfcitable.AccroedJkuefitpayableatNonnal.Retirement:Date-.
8.03 Payment of Deferred Vested Pension.
(itA) If the present value of the Participant's deferred vested pension does not exceed~3.500.
the Trustee will automaticallv pay the deferred vested pension in lump sum, as soon as
administratively practicable following the Participant's Separation from Service. In no event may the
distribution occur later than the 60th day following the close of the Plan Year in which the
Participant attains Normal Retirement Age.
(em If the present value of the Participant's deferred vested pension exceeds $~3.500, the
Trustee will pay the deferred vested pension in the form elected by the Participant. A Participant
may elect to commence his deferred vested pension after the Participant's Normal Retirement Date.
If the Participant fails to elect a distribution date, then the Trustee wilLcommence payment of the
deferred vested pension in accordance with ArticleX.
8.04 Pre-Retirement Death Benefit. If a Participant dies prior to commencement of
a normal retirement pension, deferred vested pension or early retirement pension, his Beneficiary
will receive a death benefit equal to the present value of the Participant's Nonforfeitable Accrued
Benefit. The Trustee will make payment, or commence payment, of the deceased Participant's death
benefit in accordance with Articles IX and X.
8.05 Vesting Schedule.
(A) 100% Vesting Upon Certain Events. A Participant's Accrued Benefit is 100% Nonforfeitable
upon and after his attaining Normal Retirement Age (if employed on or after that date). A
Participant's Accrued Benefit is 100% Nonforfeitableif the Participant's separation fium Service is a
result of death, disability or eligibility for an early retirement pension.
(B) 100% Vesting of Required Participant Contributions. Each Participant is immediatelv 100%
vested with respect to his Required Participant Contributions. A Participant is entitled to receive a
return of his Required Participant Contributions. contributed while a participant under the money .
purchase plan prior to October 1. 2000. upon termination of emplovment. together with simple
interest at a rate equal to the interest rate on 3D-year Treasury securities as published in the Internal
Revenue Bulletin determined as of the calendar month preceding the first day of the Plan year. and
effective October 1. 2003. a rate equal to the U.S. Treasury Department long-term average rate
8.1
published on the last day ofthe calendar month precedin~thdlrst day of the Plan year~ orsuch other
rate that may be approved bv the U.S. TreasurvDepartmentto replace the30-yearTreasurv bond rate
as a benchmark for calculating lump' sum payouts from defined- benefit plans. in lieu-of any other
benefit under the Plan. TI1e amount received asa distribution by theParticimmtshallbeused to
reduce the accrued benefit. if any. at his normal retirement date. Reauired,Particinant contributions
contnouted on and after October 1. 2000 are 100% vested and shall be incJudedin the deferred
vested benefit pavable to the Particinant upon normal retirement date;
fIijfQ Vesting Schedule. Subject to Section 8.05(A) and Section 8.05(B). a Participant's
Nonforfeitable percentage.in his Accmed,Bem:fitequals the.pen:entage,inthe.following,schedule:.
Years of Service
Nonforfeitable
Percentage'
Less than 3 ....................... .None
3 ............................. 200/0
4.............................400/0
5 ............................. 600/0
6 ............................. 800/0
7 or more .. . . . . . . . . . . . . . . . . . . .. 100%
fGlli2) Amendment to Vesting Schedule. Though the Employer reserves the right to amend the
vesting schedule at any time, the Retirement Committee will notapp ly the amended vesting schedule
to reduce the Nonforfeitable percentage of any Participant's Accrued Benefit derived from Employer
contributions (determined as of the later of the date the Employer adopts the amendment. or the date
the amendment becomes effective) to a percentage less than the Nonforfeitable percentage computed
under the Plan without regard to the amendment. An amended vesting schedule will apply to a
Participant only if the Participant receives credit for at least one Hour of Service after the new
schedule becomes effective.
If the Employer makes a pemlissible amendment to the vesting schedule, each Participant
having at least 3 Years of Service with the Employer may elect to have the percentage of his
Nonforfeitable Accrued Benefit computed under the Plan without regard to the amendment. The
Participant must file his election with the Retirement Committee within 60 days of the latest of (I)
the Employer's adoption of the amendment; (2) the effective date of the amendment; or (3) his
receipt of a copy of the amendment. The Retirement Committee, as soon as practicable, must
fOIWard a true copy of any amendment to the vesting schedule to each affected Participant, together
with an explanation of the effect of the amendment, the appropriate form upon which the Participant
may make an election to remain under the vesting schedule provided under the Plan prior to the
amendment and notice of the time within which the Participant must make an election to remain
under the prior vesting schedule. The vesting schedule election does notapply to a Participant if the,
amended vesting schedule provides for vesting at least as rapid at all times as the vesting schedule in
effect prior to the amendment.
~ Forfeiture for Cause. The. p'lan doc::s n()tpermit a forfeiture for cause~
8.2
. ~~I!l~_______. .J
C~!~t~~(C>= _.=~=_. .~.._~'J
~....... _(D) _ -.----'l
8.06 Year of Service - Vesting. , For purposes of vesting. under Section 8,05, Year of
Service means- any Plan YeaF during which an EmpIDyee completGnot less-than 1.000. Hours- of.
Service.. A Year of Service,includes any Year of Serviceeamed. prior.to the.Effecti:veDate of the.
PIan. except as provided.in Section 8.08.
8.0T Break in Service - Vesting. For-purposes of this Article VIII.: a Participantincms a
"Break in Service" if during any Plan Year he does not complete,more than 500 Hours of Service
with the Employer.
8.08 Included Y ears of Serv ice - Vesting. For purposes of determining "Years of Service"
under Section 8.06. the Plan takes into account all Years of Qualified Service credited to a, .
Particioant oursuant to Section 5.02(B) and all Years of Service an Employee completes with the
Employer except
(aA) Any Year of Service completed before a Break in Service, unless the Employee completes a
Year of Service after the Break in Service. This Break in Service role will not operate to rec:reditany
Year of Service disregarded under clause (bm.
(b~) Any Year of Service completed before a Break in Service if the number of the Participant's
consecutive Breaks in Service equals of exceeds the greater of 5 or the aggregate number of the
Years of Service prior to the Break. This Break in Service rule applies only if the Participant is 0%
vested in his Accrued Benefit derived from Employer contributions at the time he has a Break in
Service. Furthermore. the aggregate number of Years of Service before a Break in Service does not
include any Years of Service not required to be taken into account under this exception by reason of
any prior Break in Service. If the Retirement Committee Retirement Committee disregards. the,
Participant's Years of Service under this exception, the Plan forfeits his pre-Break .in Service
Accrued Benefit.
(6h) Any Year of Service before the Plan Year in which the Participant attained the age of 18.
8.09 Disregard of Accrued Benefit.
(A) Cash-Out Distribution. If a partially-vested Participant receives a cash-out payment of his
entire Nonforfeitable Accrued Benefit, the Retirement Committee will disregard the Participant's'
Accrued Benefit determined as of the date- of the cash-out distribution. A partially-vested Participant
who is re-employed by the Employer after receiving a cash-out distribution has the right to repay the
Trustee the Employer derived portion of the cash-out distribution he received, provided his
repayment right has not expired. The Participant's repayment must include interest at the rate
determined under Cod~ ~411(c)(2)(C) (or under a successor to that Code section). calculated from
the date of the cash-out distribution. A Participant's right to make repayment expires on the earlier' ,
of: (1) the date 5 years after the Participant's'first re-employment date with the Employer following
the cash-out distribution; or (2) the last day of the first Break in Service Period ending aft~rthe cash-
out distribution. A Break in Service Period isa period of 5 consecutive Plan Years in which the
Participant incurs a Break in Service.
8.3
(B) Restoration of Accrued Benefit If. prior-to the expiration of tile- repayment. period.- a.
re~mployed Participant makes- repayment in accordance with the terms of this Section- &09, the.
Retirement Committee wlll restoretheParticipant's Accrued Benefitdis.q;<odt,dunder1his Section
8.09.
(C) 0% Vested ParticipanL A 0% vested Participantis,a Participant whoseAccroed Benefit is,
entirely forfeitable at the time of his Separation from Service. Underthedeemedcas\H}ut rule, the
Retirement Committee willtreat.the.O% v~'ted Participant as having received a cash-out distnbution
on the date of the Participant's Separation'from-Service. Forpurposes of-applying the restoration
provisions of this Section 8.09, the Retirement Committee will treat the 0% vested Participant as
repaying his cas\H}ut "distribution" (plus the required interest) on tile first date ofhis re-employment
with the Employer.
* * * * * * * * * * * * * * *
8.4
ARTICLE IX - PRERETIREMENT SURVIVOR ANNUITY
~.O 1 Preretirement Survivor Annuity - Eligibility. If a married Participant dies prior tl> his '
annuity starting date. the Retirement Committee. will direct the Trustee to distribute: to the
Participant's surviving spouse a preretirement survivor annuity, unless the Participant has a valid
waiver election (as described in Section 9 .02) in effect. or unless the.Participant and his spouse were
not married throughout the one yeaTperiod endingon.the date-ofhis.death;
(A) Ple.etin;mentSurvivorAnnuity -Defined; A preretirement survivor annuity is a straight life
annuity, payable no less frequently than annually, for the life of the. surviving. spouse:..
(B) Present Value Not Greater Than ~3.500. If the present value of the p,,;,,:tiIOllent
survivor annuity is not greater than $~3.500, the Trustee will automatically make the distribution
in a lump sum, in lieu of the preretirement survivor annuity. The distribution must OCCUTon orbefore
the annuity starting date.
(C) Surviving Spouse Elections. If the present value of the preretirement survivor annuity
exceeds ~3.500, the Participant's surviving spouse may elect to have the Trustee commence
payment of the preretirement survivor annuity as of the first day of any month following the
Participant's death, but not later than the applicable mandatory distribution period described in
Article X. A surviving spouse also may elect any form of payment described in Article X, in lieu of
the preretirement survivor annuity (other than a joint and survivor annuity), In the absence of an
election by the surviving spouse, the Retirement Committee will direct the Trustee to distribute the
preretirement survivor annuity as soon as administratively practicable following the close of the Plan
Year in which the latest of the following events occurs: (I) the Participant's death; (2) the date the
Retirement Committee receives notification of or otherwise confirms the Participant's death; or,(3)'
the date the Participant would have attained Normal Retirement Age.
(D) Special Ru]es. If the Participant's surviving spouse dies prior to the commencement of the
preretirement survivor annuity, the Plan will not pay the preretirement survivor annuity and the
Retirement Committee will determine the Participant's death benefit pursuant to Section 8.04.
9.02 Waiver E]ection - Preretirement Survivor Annuity.
(A) Exp]anation of Waiver. The Retirement Committee must provide a written explanation of
the preretirement survivor annuity to each married Participant, within the following period which
ends last: (I) the period beginning on the first day of the Plan Year in which the Participant attains
age 32 and ending on the last day of the Plan Year in which the Participant attains age 34; or (2) a
reasonable period after an Employee becomes a Participant. A reasonable period described in clause
(2) is the period beginning one year before and ending one year after the Employee becomes a
Participant. If the Participant separates from Service before attaining age 35"clauses (1) and (2)do '.
not apply and the Retirement Committee must provide the written explanation within the period
beginning one year before and ending one year after the separation from Service. The written
explanation must describe, in a manner consistent with Treasury regulations, the terms and
conditions of the preretirement survivor annuitycomparab]e to the explanation of the qualified joint
9.1
and survivor annuity required under Article X The- Pfarr does not limit the: number of times the. -
Participant may revoke a waiver of the pn::lI;;tin:;lnent swvivorammity onnakea new waiver during
the eJection period"
(B) WaiVel" Requirements. A Participant's waiver election of thepn:retirementsunrivorannuity
is not valid unless (1) the.Participant makes the waiver election no earlier than the first day of the
Plan Year in which he attains age 35 and (2) the Participant's spouse-(to whomthe-p.en::t;..;mott
survivor annuity is payable) satisfies the consent requirements described in Article X. except the
spouse need not consent to the form'ofbenefit payable to the designated Beneficiary. The_spouse's
consent to the waiver of the pn;;n:.t;"'lU~t survivor annuity is.irrevocable;,.uniess the: Participant
revokes the waiver election. Irrespective of the tinie of election requirement described.in clause.( 1). '
if the Participant separates from Service prior to the first day of the Plan Year in which he attains age
35, the Retirement Committee will accept a waiver election as respects the Participant's Accrued
Benefit attributable to his Service prior to his separation from Service. Furthermore, if a Participant
who has not separated from Service makes a valid waiver electio~ exceptforthe timing requirement
of clause (1). the Retirement Committee will accept that election as valid, but only until the first day
of the Plan Year in which the Participant attains age 35. A waiver election described in this
paragraph is not valid unless made after the Participant has received the written explanation
described in this Section 9.02.
9.03 Reduction of Pension Benefits. The Trustee will not reduce a Participant's pension
benefits as a result of the preretirement survivor annuity coverage required under Section 9.01. The
Employer alone bears the cost of providing the preretirement survivor annuity_
. . .'. . * .. . . . . . . '.
9.2
ARTICLE X - PAYMENT OF ACCRUED BENEFIT -
OPTIONAL FORMS- OF PAYMENT
10.01 Form of Benefit. Subjectto the requirements of Section: 10.02,.. the. Retirement
Committee will direct the Trustee to pay a Participant his Nonforfeitable Accrued Benefit in aJorm
permitted UDder Section- 10.05. Annuitypaymeots will continue:.w1til the:last:scheduled.payment
coincident with or immediately preceding the date of the Participant's death or.if applicabl~ the date
ofhis survivors,dead1..
(A) Consent. A Participant must consen~ in writin~to any distributiondescnbed in thisArticIe
X if the present value of the Participant's Nonforfeitable Accrued Benefit aceeds~3500. and,
the distribution commences prior to the Participant's attaining Normal Retirement Age. Furthermore.
the Participant's spouseaIso mustconsent:. in writin~ to any distribution'forwhich Section 10,02.
requires the spouse's consenLForpurposes of the:consentrequirements under this Article- X. if the, .
present value of the Participant's Nonforfeitable Accrued Benefi~ at the time of any distribution.
aceeds ~3.500. the Retirement Committee. will treat that present value.. as ac~
~3.500 for purposes of all subsequent Plan distributions to the Participant.
(B) Annuity starting date/distribution date. The term "annuity starting date" means: (1) the first
day of the first period for which the Plan pays an amount as an annuity; or (2) for a distribution in
any other form, the date of the distribution. A distribution date is the date as of which the Plan
requires distribution pr as of the date which the Participant (or Beneficiary) may elect to commence
distribution.
(C) Direct Rollover of Eligible Rollover Distribution. Fordistnbutionsmade after December31,
1992, a Participant may elect, at the time and in the manner prescribed by the Retirement Committee,
to have any portion of his eligible rollover distribution paid directly to an eligible retirement plan
specified by the Participant in a direct rollover designation. For purposes of this Section I 0.01(C), a
Participant includes a Participant's surviving spouse and the Participant's spouse or former spouse
who is an alternate payee under a qualified domestic relations order.
The following definitions apply to this Section 10.01 (C):
(1) Eligible rollover distribution. An eligible rollover distribution is any distribution of all
or any portion of the balance to the credit of the Participan~ acept an eligible rollover distribution
does not include: any distribution which is one of a series of substantially equal periodic payments
(not less frequently than annually) made for the life (or life expectancy) of the Participant or the joint
lives (or joint life expectancies) of the Participant and the Participant's designated beneficiary, or for
a specified period of ten years or more; any distribution to the extent required under Code
940 I (a)(9); and the portion of any distribution which is not includible in gross income.( determined. ,
without regard to the exclusion of netunrealized appreciation with respect to employer securities).
(2) Eligible retirement plan. An -eligible retirement plan is an individua~ retirement
account described in Code 9408(a). an individual retirement annuity described in Code 9401 (b). an
tOJ
annuity plan described in Code ~403(a).ora qualified trusrdescribed irrCode ~40I(a).whicb
accepts-the Participant's eligible rollover distribution. However; in the case of an eligible rollover
distribution to the,surviving spouse,. aneligibleretiremem.plan is an:individuaLldU~acanmt:or
individual retirement annuity.
(3) Direct.rollover. A din:ctrolloveri5 apayment:by"tbe::Pbn:totbe.-digible:ldUaw:u1..'
plan specified by the'distributee;:
10.02 Qualified. Joint'and:Sm:vivorAnnurty:
(A) Payment of Annuity Form; The Retirement Committee must direct the Trustee to distributea.
married or unmarried Participant's Nonforfeitable Accrued Benefit in the form of-a qualifiedjoint.
and survivor annuity, wiess the Participant: makes a validwaiverelection:( described. in. Section:
I OJ~) prior to the annuity starting.dare-. If, as of the annuity starting'date;.thetParticipanti5 mafried;.
a qualified joint and survivor annuity is an immediate annuity payableforthe life of the Participant ,
and a survivor annuity payable for-the remainingJife of the,Participant's surviving.spouse.whichis
50% of the amount of the annuity payable during the life of the Participant. If, as of the annuity
starting date, the Participant is not married. a qualified joint and survivor annuity is an immediate life
annuity for the Participant. The qualified joint and survivor annuity.will be the Actuarial Equivalent
of the Participant's Nonforfeitable Accrued Benefit and will provide monthly payments. The
Participant may elect to have annuity payments less frequently than monthly, but not less frequently
than annually.
(B) Present Value Not Greater Than $~3.500. If.the present value of the Participant's
Accrued Benefit is not greater than $~3.500, the Trustee will automatically pay the Participant's
pension in a lump sum, in lieu of a qualified joint and survivor annuity. The distribution must occur
on or before the annuity starting date. The consent requirements of this Article X do not apply to a
Participant subject to this paragraph.
10.03 Commencement of Benefits. The Retirement Committee must direct the Trustee to
commence distribution of benefits in accordance with this Section 10.03, subject to the mandatory
distribution requirements of Section 10.06.
(A) Distribution to Participant Who Separates from Service Before Normal Retirement Date. The
Retirement Committee will direct the Trustee to commence distribution of the Participant's
Nonforfeitable Accrued Benefit in accordance with Article VI, VII or VIII, whichever applies.
(B) Distribution to Participant Who Separates from Service After Normal Retirement Date. The
Retirement-Committee will direct the Trustee to commence distribution ,to the Participant:
(1) Present Value of Normal Retirement Pension Not Exceeding ~3.500. In lump
sum, as soon as administratively practicable following the Participant's separation from
Service, but not later, than the 60th day following the close of the Plan Y eari,n which that
separation from Service occurs.
10.2
(2) Present ValueofNonnal Rc:ti'~UlelJtPensionEx.ceeds ~3500. In the form and.
at the time elected by the Participant. as permitted under this Article X The Participant may .
elect to commence distnbution:as soon as, administratively prncticablefollowingsepamtion
from Service OT as of the first day of any subsequent month.
(C) Failure of Participant' To Make'an Election: Where-theParti..jp'Ullhasthe-rigbt.toelectth~
form and timing of his pension, but has failed to make an election; the Retirement Committee will,
direct the Trustee.to commence distribution of the; Participant's pension;, in the fonn prescribed by
Section 10.02., as soon as adlllin.i:ttJati"e1y practicable. foJlowing:thdaterof::-(1) the,PaIti..iJTcWt's
attainment of Normal Retirement Age; OT (2) the Participant's separation from Servi~n: pUISUaDt to
the Plan. the latest distribution date available to the Participant occurs' earlier than the mandatory
distribution date described in this Section lO.03(C), the Retirement Committee wiJlsatisfy this
distribution requirement. by purchasing,. as soon as' aJlJJilJ~batively. pnlCticable afterthe latest
applicable distribution date;. a. deferred: Noubaru.ferable-Annuity which will commc:m:e-:- the '
Participant's pension at the mandatory distribution date, '
(D) Notice to Participant. At least 30 days before the Participant's annuity starting date, the
Retirement Committee must provide a benefit notice to a Participant who is eligible to make a
distribution election under the Plan. The benefit notice must explain the optional forms of benefit in
the Plan, including the material features and relative values of those options, and the Participant's
right to defer distribution until he attains Normal Retirement Age.
(E) Death of the Participant. If the Participant had commenced distribution prior to his death, the
Retirement Committee will direct the Trustee to make distribution to the Participant's Beneficiary in
accordance with the distribution method in effect at the time of death. If the deceased Participant had,
not commenced distribution, the Retirement Committee will direct the Trustee to distribute the'
Participant's death benefit in accordance with paragraph (1) or paragraph (2), whichever applies,
subject to the requirements of Article IX.
(1) Present Value of Death Benefit Does Not Exceed $~3.500. In lump sum, as soon
as administratively practicable following the date on, which the Retirement Committee'
receives notification of or othelWise confirms the Participant's death.
(2) Present Value of Death Benefit Exceeds $5;G003500. In the fonn and at the time
elected by the Participant or, if applicable by the Beneficiary, as permitted under this Article
X. Unless othelWise elected by the Participant and to the extent permitted under Section
10.06, a Beneficiary may elect to commence distribution of the Participant's death benefit as
of the first day of any month following the date the Retirement Committee receives
notification of or othelWise confirms the Participant's death. In addition to the other forms of
distribution available under this Article X. and to the extent permitted under Section 10.06, a .
Beneficiary may elect to receive the Participant's death benefit in monthly, quarterly or
annual installments over a 5 year period, unless the Participant elected othelWise. In the
absence of an election, the Retirement Committee will direct the Trustee to distribute the,
Participant's death benefit in five annual installment payments commencing'as soon as
10.3
administratively practicable: following:. the: end of the~ Plan: Yeartbat:the Ret:irerneDt:.
Committee receives notifiCation of Of' otherwise confirms' the Participant's death-.
I 0.04- Waiver Election - Qualified.Joint and Survivor Amwity,. .
(A) Explanation of Waiver: At least'30 days before'the-Pmtic.ipauis:ammity:.starting.date;tIr
Retirement COllulliueemustprovide the Participanta written explanation-ofthe-te:rrnsandconditions-
of the qualified joint and survivor. annuity. the, 'Participant's' right to make. and the effect of,. an .
election to waive the joint and sur.vivorfomrof-lrenefit;. the:rigbts oftbe-,Pa.ti,,;pant's'~
regarding the waiver election and the:Participant'sright to make. and the.effectof".a.re.vocation of a
waiver election. The Plan does not limitthe numberoftimes theParticipantrnayrevolre'a.waiverof
the qualified joint and survivor annuity or make a new waiver during theelection'period.
(B) WaiverRequ.i..;:m..ub. A married:Participant's waiver dectiorr is; DOt"vali<lunless (I) the:
Participant's spouse (to whom the survivor annuity is payable underthe:quaJifiedjointand,survivor
annuity). after the Participant has received the written explanation- described.in this Sectio~ has,
consented in writing to the waiver election. the spouse's consent acknowledges the effect of the
election. and a notary public or the Plan Administrator(or his representative) witnesses the spouse's
consent, (2) the spouse consents to the alternate form of payment designated by the Participant or to
any change in that designated form of payment, and (3) unless the spouse is the Participant's sole
primary Beneficiary, the spouse consents to the Participant's Beneficiary designation or to any
change in the Participant's Beneficiary designation. The spouse's consent to a waiver of the qualified
joint and survivor annuity is irrevocable unless the Participant revokes the waiver election. The
spouse may execute a blanket consent to any form of payment designation or to any Beneficiary
designation made by the Participant, if the spouse acknowledges the right to limit that consent to a .
specific designation but, in writing; waives that right.
The Retirement Committee may acceptas valid a waiver election which does not satisfy the
spousal consent requirements if the Retirement Committee establishes the Participant does not have
a spouse, the Retirement Committee is not able to locate the Participant's spouse, the Participant is
legally separated or has been abandoned (within the meaning of State law) and the Participant has a
, court order to that effect, or other circumstances ex ist under which the Secretary of the Treasury will
excuse the consent requirement. If the Participant's spouse is legally incompetent to give consent, the
spouse's legal guardian (even if the guardian is the Participant) may giveconsenL
10.05 Optional Forms of Distribution. The Retirement Committee will direct the Trustee to
pay the Participant's Nonforfeitable Accrued Benefit, as elected by the Participant or, if applicable,
by the Beneficiary, under one of the optional forms of distribution permitted under this Section
10.05, subject to the annuity distribution requirements of Section 10.02. The Beneficiary's election,
except as required by Article IX. is subject to any restrictions designated in writing by the Participant
and not revoked as of his date of death.
10.4
(A) Actuarial EquivalentOptionalFo~. Any furmofpaymenttwdt:I this Section- 10 .05(A)rnost'
satisfy the mandatory distribution requirements. of Section- ',10.06-' and must be the. Actuarial.
Equivalent of the Participant's NonforfeitableAccmed.Bendit:.
The optional forms of distribution are:
(1) Installments: Payment in monthly. quarterly or annual installments. over the: life
expectmc.y pf the:Participant,.orthe:joilrt.life:andlastsurvivor.expectmc.yof the,Participant.
, and his designated,Beneficiat:y:.
(2) Life Annuity. A straight life.annuity. payable no less frequently than annually. with
payment of the Participant's Accrued Benefit ending on the Parti6pant's death.,
(3) Life Annuity with Term CertaitL. A life. annuity. payable:.no less frequently than .
annually. with a term certain guaranteed.The term certain cannot exceedthe Participant's life
expectancy .or thejoint life and last survivor expectancy of theParticipantandhis designated_
Beneficiary. If a Participant dies before the Trustee has made the guaranteed number of
payments. the Trustee will continue the balance of the payments to the Participant's
designated Beneficiary.
(4) Joint and Survivor Annuity. Ajoint life annuity payable for the life of the Participant,
with a survivor annuity payable for the remaining life of a designated Beneficiary which is a
specified percentage (either 75% or 100%) of the annuity payable during the Participant's,
life.
10.06 Mandatory Distributions. .
(A) Required Beginning Date. If any distribution commencement date described under the Plan,
either by Plan provision or by Participant election (or nonelection), is later than the Participant's
Required Beginning Date, the Retirement Committee instead must dire,ct the Trustee to make
distribution to the Participant on the Participant's Required Beginning Date: A Participant's Required'
Beginning Date is the April I following the close ofthe calendar year in which the Participant attains
age 70Y2 or, if later, April I following the close of the calendar year in which the Participant
separates from Service. A mandatory distribution at the Participant's Required Beginning Date will
be in the form of distribution required under Section 10.02 unless the Participant. pursuant to the
provisions of this Article X, makes a valid election to receive an alternative fonn of payment.
(B) Minimum Distribution Requirements for Participants. The Retirement Committee may not
direct the Trustee to distribute the Panicipant's Nonforfeitable Accrued Benefit, nor may the
Participant elect to'have the T rusteedistribute his Nonforfeitable Accrued Benefit. under a method of . ,
payment which. as of the Required Beginning Date. does not satisfy the minimum distribution
requirements under Code *401 (a)(9) and the applicable Treasury regulations.
10.5
(1 ) Minimmrrdi~b ibutiulI furammity di~bibutiuILAn:amm:itydi:ob ibutiUII made to the'
Participant to satisfy the-lllwimwndistribution I~Clleots-mustmeetall of the fonowing. .
requirements:
(a) The periodic payment intervals under: the annuity may not belonger-than one
year.
(b) The.. distribution ,period, JJIUSt..notex.ceed..the.life(or joint: lives) of the..
Participantamt~desigrr.rtPtl~{asdde..a.ined.~ArticleJffi[.,subject:;
to the requirements of the Code ~40 1 (a)(9) regulations)..oraperiod.certain not lon~
than the, life' expectancy (or joint life~ expectancy) or the. Pa1ti~p<wt ,and his.
designated Beneficiary.
(c) The:annuity does not recalcu1ate..lifeexpectancy."
(d) The. Participant or Beneficiary may, not.lengtben,cthe_period. certaio;.-if
applicable, even if the period certain is shorter than the maximum period permitted
under Code ~40I(a)(9).
(e) The payments are nonincreasing or increase only under the following
circumstances: (i) with any percentage increase in a specified and generally
recognized cost-of-living index; (ii) to take into account the reduction to the amount
of the participant's payments to provide a survivor benefit, but only upon the death of
the Beneficial)' on whose I ife the annuity determines the survivor distribution period
and if the payments continu,e over the life of the Participant; (iii) to provide cash.
refunds of Employee contlibutions upon the Participant's death; or (iv) becauseofan
increase in benefits under the Plan.
(t) If the annuity is a life annuity (or a life annuity with a period certain not
exceeding 20 years) the minimum distribution required by the Participant's Required
Beginning Date is one payment interval. Subsequent minimum distributions are the
payment intervals determined under the al1nuity, even if the second payment interval
occurs in the calendar year following the year in which th(! Required Beginning Date
occurs.
(g) If the annuity provides a period certain without a life contingency, or if a life
annuity with a period certain exceeding 20 years, the minimum distribution for each
calendar year subject to this Section 10.06, is the annual amount; determined by
totaling the periodic payments for a calendar year. The minimum distribution due by
. the Participant's RequiredBegintringDate is the annual amount for the calendar year.
preceding that Required Beginning Date. The minimum distribution for the calendar
year which includes the Required Beginning Date and for all subsequent calendar
years is the annual amount for that calendar year and the' annuity must pay that
minimum distribution no later than December 31 of that calendar year.
10.6
(2) Minimum Distribution IncideotalDeatbBe:ne:fit("MDIB"pftheParticipant's spouse:.
is not his designated BenefiCiary, an annuity must sarisi)' the MOm requirements ()f this.
paragraph. If the annuity provides a period certain; without a life contingency,. the period
certain in effect as of the first distnbution calendar year may not exceed the applicableperiod'
determined under the maximum period certain table set forth in Treas; Reg. S 1.40 I (a)(9~2. If
the annuity with a lifecontingency includes a period certain,thepe:riodcertain'atanytirne-orr
or after the Participant's Required BeginningDate also may not exceed the maximum period
certain dctamillcd, under.the'tabledescribed irrtheimmediatelypreceding, sentence, Ifthe:.
, annuity is a joint' and survivorllJll1Uity-payable:-fo~joint-lives-:ofthe:Participant'and:a
nonspouse Beneficiary. the survivor percentage: in effect aLany time on, or. after the.
Participant's Required Beginning Date may not exceed thepercentagedete. IIlilled underthe:
applicable percentage table set forth in Treas. Reg. S 1.40 I (a)(9)-2. A joint and survivor
annuity under which the survivor percentage: does not exceed.52% always ,satisfies this '
parngraph~ A lifeannuityJTclY3:ble:to'thePartic:ipant;..withoutanyperiod: certain;.. is notsubject: '
to the MDIB requirements of this paragraph.
(3) Additional Accruals. Benefits accruing to the Participant after his. Required
Beginning Date constitute a separate component of an annuity distribution, beginning with
the first payment interval ending in the calendar year immediately following the calendar
year in which such amount accrues. The annuity starting date and form of distribution
commenced by the Required Beginning Date applies to the distribution of these additional
accruals, unless the Participant elects otherwise pursuant to his benefit options under the
Plan, and that election otherwise complies with these minimum distribution requirements. An
additional accrual includes any portion of the Participant's Accrued Benefit which becomes
Nonforfeitable during the applicable calendar year.
(4) Nonannuity Distributions; If the Participant elects an installment distribution directly
from the Trust, under which the method of payment is in the form of an individual account
distribution, the distribution method must satisfy the minimum distribution requirements
which apply to individual accounts, including the MDIB requirements which apply to
individual accounts, as determined urider Code g40 I (a)(9) and the applicable regulations. A'
lump sum distribution made on or before a Participant's Required Beginning Date of his
entire Nonforfeitable Accrued' Benefit under the Plan satisfies the minimum distribution
requirements. Furthermore, a lump sum payment of additional accruals, as described in the
immediately preceding paragraph, no laterthan the end of the first payment interval ending in
the calendar year immediately following the calendar year in which such amount accrues,
satisfies the minimum distribution requirements.
(C) Minimum Distribution Requirement for Beneficiaries. The method of distribution to the
Participant's Beneficiary must satisfy Code 9401 (a)(~) and the applicable Treasury regulations. .
(I) Death After the Required Beginning Date. If the Participant's death occurs after his
Required Beginning Date or, if earlier, the date the Participant commences an irrevocable,
annuity, the method of payment to the Beneficiary must provide for completion of payment
10.7
over a period- which does not exceed. the..payme:nt:period..which:bad.commenced.fortbe::
Participant..
(2) Death Before.the Required BeginningDate;..!fthe:I!articipant'sdeath OCCUIS'priorto ,
his Required BeginningDate~.and the Participanthasnotcommencedan irrevocable amruity;
the method of paymenUo the-Beneficiarymustprovideforcompletion'ofpayrnent"overa:
period not exceeding:
(a) 5 yt:ars;a.fter.tIre:date:of'theJJ.a:rticij:r.mt's:deatk(w;itb:pa:yments"'oomJ)leted:by"
December 31 of the, calendar year in w hicb. occurs the. 5th anniVersal}' of the.,
Participant's date of death); or
(b) if the Beneficiary is a designated. Beneficiary,: over the. designated..
Beneficiary's life orlife ex~y_
The Retirement Committee will not direct. payment over a period described.in clause-(b)
unless the Trustee will commence payment to the designated Beneficiary no later than the,
December 31 following the close of the calendar year in which the Participant's death occurred or, if
later, and the designated Beneficiary is the Participant's surviving spouse, the December 31 of the
calendar year in which the Participant would have attained age 7012. The Retirement Committee
must use the unisex life expectancy multiples under Treas. Reg. S 1.72-9 for purposes of applying this
paragraph. An annuity distribution to the designated Beneficiary, whether directly from the Trust or
in the fonn of a Nontransferable Annuity Contract, satisfies clause (b) if the annuity satisfies the
minimum distribution requirements of Section 1O.06(B), but applying paragraphs (t) and (g) of
Section 1O.06(B)(I) as follows: (i) the distribution calendar years applicable to the designated
Beneficiary are the calendar year in. which benefits must commence under clause (b) of this Section
1 0.06(C)(2) and all subsequent calendar years; and (ii) the first payment interval under paragraph'(f)
is due by the December 31 described in this Section 10.06(C)(2). A lump sum distribution to the
Beneficiary made no later than the date described in clause (a) of this Section 1O.06(C)(2) satisfies
these minimum distribution requirements.
In the case of a nonannuity distribution to a designated Beneficiary, the Plan satisfies the
requirement of this Section 1O.06(C) if the distribution method satisfies the minimum distribution
requirements applicable to individual aCcounts, as determined under Code s401(a)(9) and the
applicable regulations, and the first minimum distribution occurs no later than the December 31
described in clause (2)(b) of this Section 1 0.06(C). The Retirement Committee will apply the post-
death minimum distribution rules by treating any amount paid to the Participant's child, which
becomes payable to the Participant's surviving spouse upon'the child's attaining the 'age of majority,
as paid to the Participant's surviving spouse.
(D) Special Rules. The Retirement Committee, only upon the Participant's written request or, in
the case of a distribution described in Section 1O.06(C), only upon the written request of the
Participant's spouse, will recalculate the applicable life expectancy period.forpurposes of calculating
the minimum distribution applicable to a distribution calendar year following the first distribution
10.8
calendar year. The Participant must make lr recalculation election not 'lateT'tharr his Required
Beginning Date. Aswviving spouse ,must make a recalculation'electionno,laterthanthe December.
31 date descnlJed. in Section 10.06(C)(2). ArecaIcuIation election applicable. to a..jointlife.
expectancy paymem..,where the survivor is a nonspouse Beneficiary, may not take. into accOlmtany'
adjustment to any life expectancy other than the Participant's life expectancy, as prescribed by the
applicable.regulatiODS,under:Code.~.40 I (a)(9)-, In the.absence..of a.recalculation e1ection;..the..Plan.
does not permit recalculation of the applicable: life expectancy factor.
. 10.07' DistnlmtionsUnderDomestii:::RelationsOrders-.Nothingcontaiucalintbis-Planwill
prevent the Trustee, in accordance. with the. direction of the. Retirement,Committee.from complying.
with the provisions of a qualified domestic relations order (as defined in Code g4-l4(p)). The
Retirement Cammittee may adapt any written procedures relating ta a qualified damestic relatians,
order-which the Retirement Committee;deemsm:cessaryforproper.~ati.onofthe:PiaK.~
Plan speeifieallydoes not permits.' distribution to an. alternate payee: under a: qualified. domestic. .
relations order at WI)' time, irreSf:leeh"e €If wfteM1erontil the Participant ft&s-attai~, his earliest
retirement age (as defined. under Code g414(p)) underthe Plan. .J>. tlisBilntheR te IHl &:IteftHtte.JHlyee" .
prier ta tfte PaftieipaRt's attaiRmeRt af earliest retiremeRt age is a'..ailable aRly if: (1) the arder
speeifies tlisHlbtttieft at that time ar pefHlits WI &greemeRt betweeR tftePllitlWltl the &:Itefllate payee te
autherize 8n earlier eistributien; and (2) if the J'lFesent "alue ef the alternate payee's benefits l:JReer
the Plan exceeds $5,000, ane the ereer requires, the alternate payee censents te any distributien
oeeHmng J'lrior to the PartieiJ'laRt's attainment ef earliest retirement age. Nething in this Sectien
10.07 permits a Participant a right te receive distributien at a time atheIWise nat permitted under the
P.!an nar daes it permit the alternate payee ta receive a farm af payment nat permitted under the Plan.
For purpases of applying Articles IX and X, the Retirement Committee will treat a former,
spause as the Participant's spause ar surviving spause ta the extent provided under a, qualified
damestic relatians order. The survivar annuity requirements of Article IX and the jaint and survivar
annuity requirements ef Article X apply separately to the portien efthe Participant's Nenferfeitable
Accrued Benefit subject ta the qualified damestic relatiens erder and ta the partien of the
Participant's Nenferfeitable Accrued Benefit nat subject te that erder.
The Retirement Cammittee must establish reasenable pracedures ta determine the qualified
status af a damestic relatians erder. Upan receiving a damestic relatians arder, the Retirement
. Cammittee promptly will notify the Participant. and any alternate payee named in the order, in
writing, of the receipt of the order and the Plan's procedures for determining the qualified status of
the order. Within a reasanable peried ef time after receiving the demestic relatians arder, the
Retirement Cammittee must determine the qualified status af the arder and must netify the
Participant and each alternate payee, in writing, of its determination. The Retirement Committee
must provide notice under this paragraph by mailing to the individual's address specified in the
domestic relations order"or in a manner consistent with applicable law.
If any partian af the Participant's Nanfarfeitable Accrued Benefit is payable during the peried
the Retirement Committee is making its determinatian af the qualified status af the damestic
relatians order, the Retirement Committee must make a separate accounting afthe amounts payable.
10.9
If the RetirementCoIlIlIlitlcedtta minQ. the ordt:ris a qualifiahiomestic'n:lations-orderwithirr 18
months. of the date amounts- fust are payable following receipt- of the order. the Retirement
Committee will direct the. Trustee.to distribute:the.payable:amountsinacco~with:the.order::If
the Retirement Committee.does not make. its determination of the. qualified status of the onk:r:.within
the I8-month determination perio~ the Retirement Committee will directthe.Tmsteeto distribute
the payable amounts in the.llJiUWQ thePlanwoulddistributciftbe:orderdid.lIOtexist and.wiJl.appIy,
the order prospectively if the Retirement Committee: later: determines' the.' order is a qualified
domestic relations order_
The Trustee wiu make. any payments or distributions required under: this, Section lO.OTby .
separate benefit checks or other separate distribution to the alternate: payee-.
. . . . . . . . . . . . . . .
10.10
ARTICLE XI - MISCELLANEOUS PROVISIONS AFFECI1NG
THE PAYMENT OF BENEFITS.
1 LOI General. In general, theTrustee.wiJ] rnak~payment of any pension directly to the'
Participant entitled to the payment. However, the RetirementCommitteemay iilstructthe:Trusteeto
purchase a Nontransferable Annuity contract from an. insurance company. The Nontransferable
Annuity contractmostprovidepensionand other kJlcfj~ irrarramountnot'IeSs.than1he-pensionand
other benefits a Participlint would receive under this Plan and otherwise must comply with the
requirements of this. Plan. In the event the TiusteepurchasesaNontransferable Annuity contract for
the benefitofa,Participant;.the: Trustee.:either.:may assign:the'contractto:theParticipantorboldtbe.
contract for the benefit of the Participant pursuant to the.;instructioosof the:Retireme:ntCommittee;.
The Trustee also may purcbasea Nontransferable Annuitycontract'forthe.benefit of a designated
Beneficiary, surviving spouse or'altemate payee under a qualified domestic relations order (as
defined in Code ~414(p)) entitledto distribution'of all ora portionofthe:Participant's'Nonforfcitable
Accroed Benefit.
11.02 Nonduplication of Benefits. In the event the Trosteedistributes any part orall ofa
Participant's Accrued Benefit to him and the Participant later resumes active employment with the
Employer, the Trustee will compute the Participant's Accrued Benefit by taking into account all of
the Participant's Years of Accrual Service. However, the Trustee wil I offset the Participant's Accrued
Benefit so computed by the Participant's Accrued Benefit attributable to any distribution the Trustee
has made to the Participant (other than a cash-out distribution described in Article VIlI). If the
distribution was a cash-out distribution. as described in Article. VIII, the Trustee will offset the
Participant's Accrued Benefit by the Accrued Benefit disregarded under Section 8.09.
11.03 [Reserved}.
11.04 No Disregard of Service. For purposes of computing Years of Service under Article
VIII, the Plan does not disregard Years of Service with respecUo which a Participant has received a
distribution of his Accrued Benefit.
11.05 Merger/Direct Transfers. The Trustee will not consent to, or be a party to, any merger'
or consolidation with another plan, or to a transfer of assets or liabilities to another plan, unless
immediately after the merger, consolidation or transfer, the surviving Plan provides each Participant
a benefit equal to or greater than the benefit each Participant would have received had the Plan
terminated immediately before the merger or consolidation or transfer. The T rostee possesses the
specific authority to enter into merger agreements or direct transfer of assets agreements with the
trustees of other retirement plans described in Code 940 I (a), and to accept the direct transfer of plan
assets, or to transfer plan assets, as a party to any such agreement. If the Trustee accepts a transfer of
assets from other retirement plans described in Code ~40 I (a) (other than the Monev Purchase Plan)
on behalf of a Participant, the Trustee shall utilize such assets to provide additional Accrued Benefits '.
for such Participant. The Trustee possesses the specific authority to accept a transfer ofassets of all
or anv portion of a Participant's account in the Monev Purchase Plan.
IJ.l
The Trustee may accept a direct transferof planassers,on behaJfofanEmployeepriOTto the'
date the Employee satisfies the Plan's eligibility conditions:. Ifthe-; Trustee: accepts such a'direct
transfer of plan assets, the- Retirement Committee' and 'Frustee' will treat the Employee- as a-
Participant for aUpwposesof the-PlanexcepttheEmployeewilJ notaccrue'benefits:untJl]leactually
becomes a Participant. in thePlan.Ifthe'Employeetenninates,employment~w:ith;the,Employerprior .
to becoming a Participant,. the. Trustee will distribute his transferred.assets to him as if they were
EmpJoyer-derived Accroed Benefits:
. ~ . ~ ~ . ~ . ~ . . ~ ~ ~ ~
11.2
ARTICLE xn - OTHER PROVISIONS AFFECTING BENEFITS
12..01 Assignment orAlie:oation~. Subjectto Code.~414(p),(relating..to qualified- domestic..
relations orders), neithera.ParticipaDtnoraBeneficiaIy mayanticipate.assignor:alienate:( e:ither:at_
law or in equity) any benefit provided W1derthePlan,.and the Trustee will not recognize any such
anticipati~assignment or alienation...Furthennore,.. a.benefiL WJder::the: PIan. is not subject to ,
attachment.. garnishment,: levy, execution or other. legal or equitable. process.. . '
12..02 [Reserved)
1203 [Reserved]
12..04- Distribution Upon T erfu;"liltioo'of Trust:. If the:Employer. k:lluuliltctthe:J:llan;:.the..
Trustee will determine:the value:of theTrust'Fund,as of the. business day nextJollowing the:date.of. .
such termination.
(A) Allocation of Assets. Upon termination of the Plan, the Retirement Committee shall direct
the Trustee to allocate the assets of the Plan in a nondiscrimatory manner and in accordance with all
applicable regulations. Any residual assets remaining after satisfaction of all benefit liabilities shall
be distnbuted in accordance with Section 12.05.
12.05 Overfunding. If the Employer has overfunded the Plan at the time it terminates the
Plan, the Trustee must return the amount by which the Employer has overfunded the Plan to the
Employer, except to the extent the Plan allocates surplus asset" to the Participants pursuant to written
procedures (including any necessary Plan amendments) adopted by the Employer incident to the,
Plan's termination. The Employer must state by written request to the Trustee the amount of the
overfunding it wishes the Trustee to return to it after satisfying all liabilities under the terminated
Plan.
. . * * . *'. * . * . . . . .
12.1
ARTICLE xm - EMPLOYER ADMINISTRA:TIVE PROVISIONS
13.01 Iofonnation:to COu1J.uith=... 'IlieEmpfoyermust:supply. cum:ut:infOIJIJation:to the::
Retirement Committee as to the name...date:.of birth.date..ofemploym~annual..compensation;.._
leaves of absence. Y ears of Service and date of termination of employment ofeachEmploye:e.who ~
or-who will be eligible..tobecome; aParticipant.underthePlan.- togetbe:nvith'ariyotber.infom.ation:
which the' Retirement Committee considers necessary.. The Employetsrecords as. to the current
information the Employerfumishesto the.Ret:ireme:ntCommittee.are.conclusive as to all. persons.
13.02 No Liability. The Employer assumes no obligation or responsibility to any of its .
Employees. Participants or Beneficiaries for any act of. or failure to act..onthepartof its,Retirement
Committee (unless the Employer is the Retirement Committee). the Trustee or the Plan
Administrator( unless the.Employer'is tbe.Plan:AdministratoJ1:.:
13.03 Indemnity of Plan Administrator and Commjtt~. To the: extent permitted. under
applicable law. the Employer indemnifies and saves harmless the Plan Administrator..themembers '
of the Retirement Committee. and the Trustee. and each of them. from and against any and all loss
resulting from liability to which the Plan Administrator. the Retirement Committee. or the memben>
of the Retirement Committee and the Trustee may be subjected by reason of any act or conduct
(except willful misconduct or gross negligence) in their official capacities in the administration of
this Trust or Plan or both, including all expenses reasonably incurred in their defense, in case the
Employer fails to provide such defense.
. ... . . . . . . . . . . . .
13.1
ARTICLE XIV - PARTICIPANT ADMINISTRATIVE PROVISIONS
14.0 I Beneficiary Designation. Any Participant may from time-to time- designate; in writing;. ,
any person or persons. contingently or successively, to whom the:Trm;tee:will pay.any applicable~'
death benefits under the Plan and the Participant may designatethefonn and method of payment..
The Retirement Committee will prescnl>e the form for the written designation of Beneficiary and.-
upon the- Participant'sofilingtheform.with theRdi,..mentCuflu"itta;;; thefomreffectivelyrevokes:
all designations filed priOTtO that date by the. same Participant.lntheabsence of spousal consent (as.
required by Articles IX and X) to the Participant's Beneficiary designation..any waiver of the
qualifiedjoint and survivorannuity orof the.v,......liL"llu;;uLsurvivur annwty:iS'not:valid.... '
14.02 No Beneficiary Designation/Death of Beneficiary. IfaParticipant fails to name:a.
Beneficiary in accordance with Section 14.01, or if the Beneficiary named by a .Participant
predeceases him. then the Trustee'will pay the death benefibrr,acl,;unJan=-'with ArticleX,inthe'
following orderofpriorityto:--
(a) The Participant's surviving spouse;
(b) The Participant's surviving children, including adopted children. in equal shares;
(c) The Participant's surviving parents, in equal shares; or
(d) The legal representative of the ParticipanCs estate.
If the Beneficiary does not predecease the Participant. but.dies prior to distribution of his
share of the Participant's entire death benefit. the Trustee will pay the remaining death benefit to the '
Beneficiary's estate unless the ,Participant's Beneficiary designation provides otherwise. The
Retirement Committee will direct the Trustee as to the method and to whom' the Trustee wiH make
payment under this Section 14.02.
14.03 Personal Data to Committee. Each Participant and each Beneficiary of a deceased
Participant must furnish to the Retirement Committee such evidence, daJa or information as the'
Retirement Committee considers necessary or desirable for the purpose of administering the Plan.
The provisions of this Plan are effective for the benefit of each Participant upon the condition
precedent that each Participant will furnish promptly full, true and complete evidence. data and
information when requested by the Retirement Committee, provided the Retirement Committee
advises each Participant of the effect of his failure to comply with its request.
14.04 Address for Notification. Each Participant and each, Beneficiary of a deceased
Participant must file with the Retirement Committee from time to time, in writing. his post office
address and any change of post office address. Any communication. statement ornotice addressed to' '
a Participant. or Beneficiary. at his last post office address filed with the Retirement Committee, or
as shown on the records of the Employer, binds the Participant, or Beneficiary, for all purposes of
this Plan.
14.1
14.05 Notice'of Change. in Terms. The Plan Administrator,....withm:thetime prescribed by: .
applicable law, mustfumish all Participants and.Beneficiaries a summary:-plan description:and, alL
other information required by applicable-law.
14.06 Litigation Against the' Trust... A court of competentjurisdiction.may. authorize any ,
appropriate equitable: relief to enforcecany provisions of applicable.law or the terms of the.P.IliILA..
fiduciary may n:ceive-reimbmsementof~~plUpgt,. andactuaUy IIJ,"wn:dm:the,pgfvtullUAoC.
of his duties with the Plan..
14.07" InfonnationAwilable'..AIl}rParticipant:iit:the:Plan:or:any::Bem:ficiaJymayexamine:
copies of the plan description, this Plan and Trust,. or any other instrument under. whichthePlanwas
established oTis operated- The Plan- Administratorwill,maintain'aJl of the' items listedirrthisSection
14.07 in his office, or in such other place oT:places as he may designate from"timeto time, for
examination dwing reasonable business hoUlS. Uporrthe written" request' of a Participant or
Beneficiary the Plan' Administrntormustfumishhirrrwith a copy-of anyitem'listedjntlris:Sectiorr.
14.07. The Plan Adnrinistratonnay make a reasonable charge to therequestingpersonforthe copy
so furnished.
14.08 Appeal Procedure fOI'Denial of Benefits. A Participant ora Beneficiary ("Claimant")
may file with the Retirement Committee a written claim for benefits, if the Participant or Beneficiary ,
determines the distribution procedures of the Plan have not provided him his proper Nonforfeitable
Accrued Benefit. The Retirement Committee must render a decision on the claim within 60 days of
the Claimant's written claim for benefits.
(A) , Notice of Denial. The Plan Administrator must provide adequate notice in writing to any,
Participant or to any Beneficiary ("Claimant") whose claim for benefits under the Plan .the
Retirement Committee has denied. The Plan Administrator's notice of denial of benefits must
identify the name of each member of the Retirement Committee and the name and address of the
Retirement Committee member to whom the claimant may forward his appeal. The Plan
Administrator's notice to the Claimant must also set forth:
(1) The specific reason for the denial;
(2) Specific references to pertinent Plan provisions on which the Retirement Committee
based its denial;
(3) A description of any additional material and information needed for the Claimant to
perfect his claim and an explanation of why the material or information is needed; and
(4)' That any appeal the Claimant wishes to make of the adverse determination must be in
writing to the Retirement Committee within 75 days after-receipt of the Plan Administrator's
notice of denial of benefits. The Plan Administrator's notice must further advise the Claimant
that his failure to appeal the action to the Retirement Committee in writing within the 75-day
period will render the Retirement Committee's determination fina~ binding and conclusive.
14.2
(B) AppeaL If the Claimant should appeal to the Retirement Committee. he.' or his duly
authorized representative,. may submit., in writing. whatever: issues and comments he,..or his' duly
authorized representative,. feels.are pertinent. The.Claimant, OF his-duly authorized representative,. ,
may review pertinentPIan docurnents_The.RetirementCoIllJlJitleewill re.~allfuctsreIatedto
the appeal and makeaJinaI.determination as to whether the denial. ofbenefitsc isjustified..under.the.
circumstances. The Retirement Committee must advise the Claimant of its decision within 60 days
of the Claimant's writtenre:questforreview. Wlless special ciJl';W1~(suchas a hearing) ,would
make the rendering of a decision within the 60-day limit, unfeasible,. but in'no event may the
Retirement Committee:render:adecision respecting;a.denial, fora claimforbenefits later than 120
days after-its receipt of a request:forreview:
. . . . . . . . . . . . . . *
14.3
ARTICLE XV - RETIR.El\ifENT COMMIJ 1.1:1: _. DU 111:.:)' WITH'.RESPEcr TO
PARTICIPANTS' ACCRUED-,~
15.01 Members' Compensation;. EXpenses". TJie Employer.lIl1lStappoint:.an .RetiieJneat;
Conunittee to administer:the."PIan,:.tbemembers ofwhich:may,ormaynotbe.Participantsin:ttJePJan;:.
or which may be the PIan:Administratoractingalone;. In the absence ,of an Retirement Committee
appointment,:. the: Plan Adullui.:.trator asswDeS'the:powers;c.duties: and.,n:sponsibilities. of. the:-
Retirement.Committee.:The.members'oftheRetirementColwl.i(ta:"wiILservewithout,cofll}~on: '
for-services assuch;..butthe Fmployerwillpayallexpenses oftheR:etirementCoIIIDIitta;except.to.
the:extentthe: Trustproperlypa.ys.the:~pmsuant~to :ArticleXVL '.
15.02 Term. Eachmembex:ofthe Retirement Committee.senresuntilthe.appointmentofhis .
successor.
15.03 POWeIS_ In case.ofa,vacanc.y in::the:membership of~Retire1m:nt Committee;..the:
remaining members of the Retirement.Committee;may exercise any andall of the:powers. authority.,
duties anddiscretion conferred.upon:the,Retirement Committee.pending,the:fillingofthe. vacancy.
15.04 General.
(A) Powers and duties. The Retirement Committee has the following powers and duties:
(1) To select a Secretary, who need not be a member of the Retirement Committee;
(2) To determine the rights of eligibility of an Employee to participate in the Plan, the
value of a Participant's Accrued Benefit and the Nonforfeitable percentage of each
Participant's Accrued Benefit;
(3) To adopt rules of procedure and regulations necessary for the proper and efficient
administration of the Plan provided the rules are not inconsistent with the terms of this
Agreement;
(4) To construe and enforce the terms ofthe Plan and the rules and regulations it adopts
including interpretation of the Plan documents and documents related to the Plan's operation
and the discretion to make factual determinations necessary to the proper administration of
the Plan;
(5) To direct the Trustee as respects the crediting and distribution of the Trust;
(6) To review and render decisions respecting a claim for (or denial of a claim for) a
benefit under the Plan;
(7) To furnish the Employer with information which the Employer may require for tax or
other purposes;
15.1
(8) To engage. the. service. ofagcnts whom it may deem advisable. to assistit with the
petfolllI<1l1",e ofits duties;
(9) To engage:the:ser:vices.ofan.Investmcnt:Mimagerodllfa~ each:o[whomwiIL
have full power and authority to' manage; acqu:ire'ontispose.(or;direct:the: Trustee:with- . .
respect to acquisition or disposition) of any Plan: asset under: its control;.
(10) To establish and maintain a fundingstandantaccount andto make.credits and charges
to the: acanmt:.to. the:em:nt:lajWnrl.:by am:I:in: ~I<hwu;:'with;the:-provisions'ofthe:.
, appIicable:Iaw_
The Retirement Committee will exercise all of its powers. duties and discretion under: the.
PJan in a uniform and nondiscriminatory manner:.
15 .05 FWldingl~oIicy.TheRetirementCommittee.willreview. notless often than amwally.
all pertinent Employee information and Plandatain order:to establish the funding policy of the Plan
and to determine the appropriate methods of carrying .out the Plan's objectives. The Retirement
Committee must communicate periodically, as it deems appropriate. to the Trustee and to any Plan
Investment Manager the Plan's short-term and long-term financial needs so investment policy can be
coordinated with Plan financial requirement...
15.06 Manner of Action. The decision ofa majority of the members appointed and qualified
controls.
15.07 Authorized Representative. The Retirement Committee may authorize anyone of
its members, or its Secretary, to sign'on its behalf any notices, directions, applications, certificates,
consents, approvals; waivers, letters or other documents. The Retirement Committee must evidence
this authority by an instrument signed by all members and filed with the Trustee.
15.08 Interested Member. No member of the Retirement Committee may decide or
determine any matter concerning the distribution, nature or method of settlement of his own benefits
under the Plan, except in exercising an election available to that member in his capacity as a
Participant, unless the Plan Administrator is acting alone in the capacity of. the Retirement
Committee.
15.09 Participant Records. The Retirement Committee will keep such records and will
prepare such reports concerning Participants' Accrued Benefits as applicable law and the Code
require. Upon a Participant's written request, the Retirement Committee will furnish, or will direct
the Plan Administrator to furnish, the Participant such infonnation.
15.10 UnclaimedAccrued Benefit - Procedure. The Plan does not require either the Trustee
or the Retirement Committee to search for. or ascertain the whereabouts of. any Participant or .
Beneficiary. At the time the Participant's or Beneficiary's benefit becomes distributable under the
Plan, the Retirement Committee, by certified or registered mail addressed to his last known address
of record with the Retirement Committee. or the Employer, must notify any Participant... or
Beneficiary, that he is entitled to a distribution under this Plan. The notice must quote the provisions
15.2
oftlris Section 15:10 and otherwise must comply with the notice requirements of Article x: If the
Parti~ or BeneficiaIy.. fails to claim his distributive.share onnakehis whereabouts known. in-
writing to the Retirement Committee within 6 months from the date of mailing of the notic~ the .
Retirement Committee will treat the. Participant's. or Beneficiary's unclaimed. pay.lble: Accmed
Benefitas forfeited. The Employer-will use the amountsrepreserrting:tdorfeitedAccmedBerrefit"
to reduce its contribution for future.Plan Years.
If a Participant or Beneficiary who has incurred a forfeiture,of his Accrued Benefit under-this
Section 15.10 makes a claim; at any time; forhis forfeired: Accrued . Benefit; the' Retirement'
Committee mustrestorethe'Participanfs or:Benehc:iary's.forfcitedAccrued.BenefiLThe:R.etin:ment
Committee must direct the, Trustee to distribute, the Participant's or Beneficiary's restored Accrued.
Benefit as soon as administratively prncticable followingresmration of the forfeitedAccrued.Bene:fi~ '
subject to the consent requirements of Article X
. . . . . . . . . . . . . . .
15.3
ARTICl.E XVI - TRUSTEE; ,POWERS AND DUTIES
16.01 Acceptance.. The Trustee:accepts the Tiust,created:.under:-thePIan:,and:.agn:es.to
perfumrthe obligations imposetL
16.02, Receipt of Contributions., The.Trustee..is accountable::to the.Employerforthe:fimds
contributed to it by the Employer, but does nothaveany duty to see that the contributions received,
comply with the.provisions ofthe'PliuLTheTmstee.is.not obliged to collectany contributions from'
the Employer;,noris obliged to seethat.-funds- deposited:witlrit:a:re:depoi!.ited.~diu!T-to-the:
provisions of the PlaIL
16.03 Investment Powers.
(A) T rustee:-Power!t. TheTrustee,has full discretionand authority with reganho the inVestment of~
the Trust Fund. except with respect to a Plan' asset under the control or direction of a properly
appointed Investment Manager. The Trustee must coordinate its invesbnent policy with Plan
financial needs as communicated to it by the Retirement Committee.
(1) Investment Powers. The Trustee is authorized and empowered, but not by way of
limitation, with the following powers, rights and duties:
(a) To invest any part or all of the Trust Fund in any common or preferred stocks,
open-end or closed-end mutual funds (including mutual funds for which the Trustee
or its affiliate serves as an investment advisor, sponsor, distributor, custodian,
transfer agent, administrator, registrar in any other capacity), put and call options
traded on a national exchange, United States retirement plan bonds, corporate bonds,
debentures, convertible debentures, commercial paper, U.S. Treasury bills, U.S.
Treasury notes and other direct or indirect obligations of the United States
Government or its agencies, improved or unimproved real estate situated in the
United States, limited partnerships, insurance contracts of any type, mortgages, notes
or other property of any kind, real or personal, to buy or sell options on common'
stock on a nationally recognized exchange with or without holding the underlying
common stock, to buy and sell commodities, commodity options and contracts for the
future delivery of commodities, and to make any other investments the Trustee deems
appropriate. as a prudent man would do under like circumstances with due regard for
the purposes of this Plan. Any investment made or retained by the Trustee in good
faith is-proper but must be of a kind constituting a diversification considered by law
suitable for trust investments.
(b) To retain in cash so much of the Trust Fund, as it may deem advisable to- .
satisfy liquidity needs of the Plan and to deposit anycash held in the Trust Fund in a
bank account at reasonable interest.
(c) To invest. if the Trustee is a bank or similar financial institution supervised by
16.1
the United States orby a State;, in any type of depositoftheTiustee(orof a bank
related to the Trustee within the meaning,ofCode ~414(b)) at a reasonable rate of
interest or in a. common trust. fund.. as . described in' Code: ~584, or. collective.
investment fund. the provisions. of which govern the.investmentofsuch assets and
which the,Plan incorporates by this reference which.the Trustee (or its affiliate, as
defined in Codes15()4.)maintainsexclusively forthecollectiveinvestmentofmoney:
contributed by the bank (or the affitiate) in itS cipacityas trustee:and which conforms
to the rules of the Comptroller of the Currency.
(d) To manage.. sell, contract to sell, grant options to purchase, convey, exchange,
transfer, abandon, improve, repair; insure, lease. for any term even though
commencing in the future or extending beyond the term of the Trust, and otherwise
deal with all property, real or personal,. in such manner, for such considerations and
on such tennsand conditions as the Trustee.decides.
(e) To credit and distribute the Trust as directed by the,Retirement Committee.
The Trustee is not obliged to inquire as to whether any payee or distributee is entitled
to any payment or whether the distribution is proper or within the terms of the Plan,
or as to the manner of making any payment or distribution. The Trustee is
accountable only to the Retirement Committee for any payment or distribution made
by it in good faith on the order or direction of the Retirement Committee.
(t) To borrow money, to assume indebtedness, extend mortgilges and encumber
by mortgage or pledge.
(g) To compromise, contes~ arbitrate or abandon claims and demands, in its
discretion.
(h) To have with respect to the Trust all of the rights of an individual owner,
including the power to give proxies, to participate in any voting trusts, mergers,
consolidations or . liquidations, and to exercise or sell stock subscriptions or
conversion rights.
(i) To lease for oil, gas and other mineral purposes and to create mineral
severances by grant or reservation; to pool or unitize interests in oil, gas and other ,
minerals; and to enter into operating agreements and to execute division and transfer
orders-.
(j) To hold any securities or other property in the name of the Trustee or its
, nominee, with depositories or agent depositories or in another fonnas it may deem
best, with or without disclosing the trust relationship.
(k) To perform any and all other acts in its judgment necessary or appropriate for,
the proper and advantageous management, investment and distribution of the Trust.
16.2
(I) To retain any funds or property subject to any dispute without liability for the
payment' of i~ and to decline: to make paymem-ontdivery of the: funds. or
property until final adjudication is made by acourrofcompetentjurisdiction:.
(m) To file all tax returns.required oftheTiostee:
(n) To furnish to the .Employer, the Plan, Administrator' and the Retirement
Committee an:annualstatement'ofaccountshowing:the'\,;UllditiulI.ofthe:Trust:Fund: '
and all investments, receipts,. disbursements and.other transactions effected..by the.
Trostee during the Plan-Y car covered by the statement and also stating the assets of
the Trost held at the end of the Plan Year, which accounts are conclusive on all
persons; including the Employer" the: Plan Administrator and the Retirement,
COllllllilta;. excepras'to al1yact:ortransactiorrconceming.whidrthe:Employe:r;:the _
Plan Administrator or the Retirement Committee files with the Trustee written
exceptionsorobjections within 90 daysafterthe,receipt of the:accounts orforwhich
applicable law authorizes a longer period within which to object.
(0) To begin, maintain or defend any litigation necessary in connection with the
administration of the Plan, except that the Trustee is not obliged or required to do so
unless indemnified to its satisfaction.
(B) Participant Loans. This Plan does not permit loans to Participants or to Beneficiaries.
16.04 Records and Statements. The, records of the Trustee pertaining to the Plan mustbe,
open to the inspection of the PlanAdministrator, the Retirement Committee and the Employer at all
reasonable times and may be audited from time to time by any person or persons as the Employer,
Plan Administrator or Retirement Committee may specify in writing. The Trustee must furnish the
Plan Administrator or Retirement Committee with whatever information relating to the Trust Fund
the Plan Administrator or Retirement Committee considers necessary.
16.05 Fees and Expenses From Fund. The Trustee will receive reasonable annual
compensation as may be agreed upon from time to time between the Employer and the Trustee. No
person who is receiving full pay from the Employer may receive compensation for services as
Trustee. The Trustee will pay from the Trust Fund all fees and expenses reasonably incurred by the
Plan, to the extent such fees and expenses are for the ordinary and necessary administration and
operation of the Plan, 'unless the Employer pays the fees and expenses. Any fee or expense paid,
directly or indirectly, by the Employer is not an Employer contribution to the Plan, provided the fee
or expense relates to the ordinary and necessary administration of the Fund.
16.06 Parties to Litigation. Except as otherwise provided by applicable law, no Participant,
or Beneficiary is a necessary party oris required to receive notice of process in any court proceeding
involving the Plan, the Trost Fund or any fiduciary of the Plan. Any final judgment entered in any,
16.3
proceeding- will be conclusive upon- the: Emptoyer;.the:PIan: Ad:mini~batur;.,the:Rdi..Ql1enr .
Committe~the T rustee;.Participants, andrBeneficiaries-_.
16.07 Professional Agents::. The Trustee may employ and pay- from the: Trust Eumt
reasonable compensation to agents, attorneys, accountants:and other persons to advise theTrostee as,
in its opinionmaybenecessary:The. Tiustee.maydelegateto3DYagent;.~;aa:ountantorotber: ,
person selected by it any, non,..Trustee power-orduty vestedin.itbythePlan,..andtheTrusteemay~'
orrefrainfrom:acting:on:tbe:ad.vice.oropinimr.ofany.agent;. attome:YraccOUJ$Dt.or:ot:be:r:personsn
selected..
16:08 Distribution DirectioDS. TheT rustee maymake:distributionunder-the-.Planmcasll"Or '
property, or partly in each, at its fair. market value as determined by the Trustee,. For purposes of a
distribution' to a. Participant:.or: to a. Participant's. ,designated..'Beneficiary or. sur:viv.ingc~_
"property" includes, a :Nontramferable. Ammity: Contract,.,' provided. the:. contract satisfies tbe:' .
requirements of this Plan. If no one. claims a,payment onlistribution'made',from: the"Trust;:tbe:
Trustee. must promptly. notify the: Retirement:'Committee: and then dispose: of ,the. paymentm..
accordance with the subsequent direction of the Retirement Committee.
16.09 Third PartylMultiple Trustees. No person dealing with the Trustee is obligated to see
to the proper application of any money paid or property delivered to the Trustee, or to inquire
whether the Trustee has acted pursuant to any of the terms of the Plan. Each person dealing with the
Trustee may act upon any notice, request or representation in writing by the Trustee, or by the
Trustee's duly authorized agent. and is not liable to any person in so acting. The certificate of the
Trustee that it is acting in accordance with the Plan will be conclusive in favor of any person relying
on the certificate. If more than two persons act as Trustee, a decision of the majority of such persons,
controls with respect to any decision regarding the administration or investment of the Trust Fund or '
any portion of the Trust Fund with respect to which such persons act as Trustee. ,However, the
signature of only one Trustee is necessary to effect any transaction on behalf of the Trust.
16.10 Resignation. The Trustee may resign its position at any time by giving 30 days
written notice in advance to the Employer and to the Retirement Committee. If the Employer fails to'
appoint a successor Trustee within 60 days of its receipt of the Trustee's written notice of resignation,
the Trustee will treat the Employer as having appointed itself as Trustee and as having filed its
acceptance of appointment with the former Trustee.
16.11 Removal. The Employer, by giving 30 days written notice in advance to the Trustee,
may remove any Trustee. In the event of the resignation or removal of a Trustee, the Employer must
appoint a successor Trustee if it intends to continue the Plan, If two or more persons hold the
position of Trustee, in the event of the removal of one such person, during any period the selection or
a replacement is pending,. or during any period such person is unable. 10 serve. for. any reason.- the..' .
remaining person or persons will act as the Trustee.
16.12 Interim Duties and Successor Trustee. Each successor Trustee succeeds to the title to
the Trust vested in his.predecessor by accepting in writing his appointment as successor Trustee and
16.4
by filing the ac=v!<w\;ewith thefumrer T mstee and the Rdin;;I1I~lllCOllwuth=.withoutthesigning. -,
or filing of any further statement. The resigning or- removed T ruste~ upon: receipt of acceptance in .
writing of the TruSt by the successor Trustee;: mustexecute,all docwnents anddoallacts.trer.P.<t-.aty to.
vest the title of recont in any successor Trustee. Each successor T.rusteechas and.enjoys all.of .the. .
powers, both discretionary and ministerial. conferred under this Agreement upon his predecessor. A .'
successor Trustee is not personally liable: for any ,act or failure. to act of any. predecessorT~.
except as required under applicable: law. With the:'applOval of the' Employer'and., the:Retirement'
Committee. a successor Trustee,.,with respect to the~Ian.-may accept the:account renderedand..the.
property delivered to it by a predecessorTrustee:withoutincurringany tiabiJityOI n;~pull:;ibiJityfuT'
so doing.
J 6.13 Valuation of Trust. The Trustee must value the Trust Fund as of each: Accounting
Date to determine the fairmarket value of the assets in.the Trust. The Trustee.also must:value..tl1e:
, Trust Fund on such other dates as directed in writing by the,RetirementCommittee:
16.14- Limitation on Liability - Iflnvestrnent Manager or Independent Fiduciary Appointed..
The Trustee is not liable for the acts or omissions of any Investment Manager the Retirement
Committee may appoint. nor is the Trustee under any obligation to invest or otherwise manage any
asset of the Plan which is subject to the management of a properly appointed Investment Manager. In
addition, any Investment Manager appointed by the Retirement Committee shall have the sole
responsibility for voting proxies for those assets of the Plan that it manages. The Retirement
Committee, the Trustee and any properly appointed Investment Manager may execute a letter
agreement as a part of this Plan delineating the duties, responsibilities an~ liabilities of the
Investment Manager with respect to any part of the Trust Fund under the control of the.Investment
Manager.
16:15 Investment in Group Trust Fund / Combined Trust. At the Employer's discretion, the
Trustee, for collective investment purposes, may combine into one trust fund the Trust created under
this Plan with the Trust created under any other qualified retirement plan the Employer maintains.
However, the Trustee must maintain separate records of account for the assets of each Trust in order
, to reflect properly each Participant's Accrued Benefit under the plan(s) in which he is a Participant.
* * * * * * * * * * * * * * *
16.5
ARTICLE XVII - INVESTMENT IN INSURANCE OR. ANNUTIY CONTRAcrS
17.01 PwclJase. of Life Insurance and Ammity Cont:racts. The Plan-does not provide
incidental life ioStmUlce-benefits forParticipants.
. . . . . . . . . . ... . . .
17.1
ARTICLE. XVIII - MISCELLANEOUS,
18.01 Evi~o11C:n:quiredto:give:evidena:DIJdm:tbe:tl:mJS;of~Iammr:ydos(lby
certificate, affidavit;.:document:orother:information"whiclrthe,personto actinreliance:ma.ycomide1::'
pertinent, reliable and genuine,..and to have.been, signed,.made,or presented by theproper,party or'
parties_ Both; the..Retirement:COmminee..and. the;Tmstee: are fully.protectedm.acting:and.relying;
upon any evidence described underthe.immediateLypreceding:senrence...
18.02 No Rbpun.:.ihility fur'Employer-Action: Neither the Tiustee:nor:-:the: Retirement
Committee has any obligation or responsibility with respect to anyaction:required.by the Plan to be.
taken by the Employer, any Participant or eligible. Employee, 'orfor;thefailure of any. of the above'
persons to act or make any payment or contribution; or to otherwise provide any benefit
comemplated.under.tbis Plan:...Ewthermo:re;.the:Plarrdoes.iIot:require:the Trustee.:or:the:Retirement.
Committee to collect any contribution.required.underthe:Plan;:orto:detennine the'collectnessof the:: .
amount of any Employer contribution. Neither the Trustee' nor-the Retirement Committee:.need..
inquire into or be responsible:for any action or failure,to act.on the part of the others,. or on the:part
of any other person who has any responsibility regarding the management, administration or
operation of the Plan.whether by the express terms of the Plan or by a separate agreement authorized
by the Plan or by the provisions of applicable law.
18.03 Fiduciaries Not Insurers. The Trustee, the Retirement Committee, the Plan
Administrator and the Employer do not guarantee, to any extent, the Trust Fund from loss or
depreciation. The Employer does not guarantee the payment of any money which may be or becomes
due to any person from the Trust Fund. The liability of the Retirement Committee and the Trustee to
make any payment from the Trust Fund at any time and all times is limited to the then available,
assets of the Trust.
18.04 Waiver of Notice. Any person entitled to notice under the Plan may waive the notice,
unless applicable law specifically or impliedly prohibits such a waiver.
18.05 Successors. The Plan is binding upon all persons entitled to benefits under the Plan,'
their respective heirs and legal representatives, upon the Employer, its successors and assigns, and
upon the Trustee, the Retirement Committee, the Plan Administrator and their successors.
18.06 Word Usage. Words used in the masculine also apply to the feminine where.
applicable, and wherever the context of the Employer's Plan dictates, the plural includes the singular
and the singular includes the plural.
18.07 State Law. Florida law will determine all questions arising with respect to the
provisions of this AgreemenL
18.08 Employment Not Guaranteed. Nothing contained in thisP]an, or with respect to the
establishment of theT rust, or any modification or amendment to the Plan or Trust, or in the creatwn
of any Account, or the payment of any benefit, gives any Employee, Employee-Participant or any
18.1
Beneficiary any righttocontinm:empf~ any legal orequitable'rightagainst the Employer; or-
Employee of the Employer; or against the Trustee, or its agents or employees, or against the Plan
Administrator;. except as expressly provided.bythe:'PIao.-the:Trust,..by aseparate:3&~orby
applicable, law.
* * * * * * * * * * ~ * * * *
18.2
ARTICLE XIX - EXCLUSIVE BENEFIT~ AMENDMENT. TERMINATION
19.01 ExclusiveBenefit. ExceptasprovidedunderArticlemand:Article~.tbe>Employer.
has no beneficial interest in any asset of the Trust and no part of any asset in_ the Trost may ever.
revert to or be repaid to an Employer, either directly or indirectly; nor'prior to the satisfaction of all
I iabil ities with respect to t~Participants and theirBeneficiaries underthe:"PIan, may:anypartofth~
corpus or income of the Trust Fund, orany asset ofthe Trust, be (at any time) used-for; ordiverted
to, purposes other than the exclusive benefit of the Participants or their Beneficiaries. However, if
the Comrnissioneroflntemal Revenue, upon-the Employer's requestforinitial i:lJ'PJUvcd ofthis:PIan;.
determines that the Trust created under the PIan.is not aqualifiedtrust.exemptfrom Federalincome:
tax. then (and only then) the Trustee. upon written notice from the Employer, will return the
Employer's contributions (and increment attributable to the' contributions) to the'Employer. The
Trustee must make the return of the Employer contribution under:this Section 19;01 within:one.year
of a final disposition'oftheEmployer's requestforinitial approval ofthe:-Plarr.:The:Emptoyer'sPlarr'
and Trust will terminate upon the Trustee's return of the Employer's contributions.
19.02 Amendment By Employer.
(A) Amendment of Plan. The Employer has the right at any time and from time to time:
(1) To amend this Agreement in any manner it deems necessary or advisable in order to
qualify (or maintain qualification of) this Plan and the Trust created under it under the
provisions of the Code ~401(a): and
(2) To amend this Agreement in any other manner.
No amendment may authorize or permit any of the Trust Fund (other than the part which is
required to pay administration expenses) to be used for or diverted to purposes other than for the
exclusive benefit of the Participants or their Beneficiaries or estates. No amendment may cause or
- permit any portion of the Trust Fund to revert to or become the property of the Employer. The
Employer also may not make any amendmerit which affects the rights, duties or responsibilities of"
the Trustee, the Plan Administrator or the Retirement Committee without the written consent of the
affected Trustee, the Plan Administrator or the affected member of the Retirement Committee. The
Employer must make all amendments in writing. Each amendment must state the date to which it is
either retroactively or prospectively effective.
19.03 Discontinuance. The Employer has the right, at any time, to suspend or discontinue its
contributions under the Plan, and to tenninate, at anytime, this Plan and the Trust created under this
Agreement. The Plan will terminate upon the first to occur of the following:
(a) The date terminated by action of the Employer; or
(b) The dissolution or merger of the Employer, unless the successor makes provision to
continue the Plan, in which event the successor must substitute itself as the Employer under
19.1
this Plan: Any to mi.mllion'ofthe'Pbmresnlting:frointhis-paragmplr(b)'is:noteffective:uotil.
compliance with any applicable.notice.requirement&.. '
19.04 Full V esting,on-Tetlui.u.cdiolL Upon either::full.or:partialtenrrirrnrion.ofthe:~am
affected Participant's right to his Accmed.Benefit:is 100% Nonforfeitable;.. im:spective of the
Nonforfeitable:pg. ~ ,Iagrwhich: otfu:r:wise:wouldappfjr:lJJIder.c ArticleVIlL'
19.05 Ternrinarion'_
(A) Procedure. Upon tennination.of the.PI~in order to liquid"tPthe.Iruslr-the:Ret:ireme:ot.
Committee shalleitherd.irect the:Trustee,to: .,
(a) distnbute:the:presentvalueoftlre-NulJful'fcitabh:.Aa:med:Bene6t:ofeach:Partic;ipant:.
in one: lump'sum;.or
(b) distribute the Nonforfeitable Accrued.Benefit of the Participants by purchasing'a.
deferred annuity contract for each Participant; or
(c) , directly transfer the present value of the Nonforfeitable Accrued Benefit of each
Participant to another retirement plan described in Code g401(a); or
(d) utilize any combination of the methods referenced in clauses (a), (b) or (c) above, as
determined in the sole discretion of the Retirement Committee.
The Retirement Committee, shall by resolution, specify the method of liquidating the Trust,
upon termination of the Plan. The Trust will continue until the Trustee in accordance with the
direction of the Retirement Committee has distributed all of the benefits under the Plan. '
(B) Freezing PlanlMergers or Transfers. A resolution or amendment to freeze all future benefit
accrual but otherwise to continue maintenance of this Plan, is not a termination for purposes of this
Section 19.05. Furthermore, a merger or direct transfer described in Section 11.05 of the Plan is not a'
termination for purposes of the special distribution provisions described in Section 19.05(A).
19.2
ARTICLE A .
APPENDIX TO PLAN AND TRUST AGREEMENT
USERRA Model Amendmenr
Notwithstanding any provision of this Plan to the contrary, contributions~ benefits and service
credit with I~pg.;t tu qualified military service:Wlll be'providedin.accOrdance:wittrCode-~) 4{u),
19.3
IN WITNESSWHEREOF.theEmployerandtheTrusteehaveexecuted this Plan and Trost.
as modified herein. in WinterSprin:gs.Florida this . day of
2003.
EMPLOYER:
CITY OF WINTER SPRINGS.
By' 7t-), ~
Print
Print
Its
TRUSTEE:
BOARD OF TRUSTEES OF THE
CITY OF WINTER SPRINGS
By:
Print
Print
Its .
19.4
AS AMENOED"ANO"ADOPTEIJI IlJO/OJ
RESOLUTIO'N:NO'. 2fMB.44..
A RESOLUTIO'N OF- TIlE, CITY COMMISSION O'F TBE:" CITY O'F ,
WINTER SPRINGS~ FLO'RIDA,.MERGING. THE MO'NEY PURCHASE
PENSION PLAN AND TRUST FOR. EMPLOYEES O'F" TIlE CITY OF' ,
WINTER SPRINGS INTO THE: DEHNED'BENEBT:,PEAN AND TaUS'I:'.
FO'R EMPLO'YEES O'F:THE-C'ITY"O'FWINTER'SPRlNGS;' AMENDIN&
THE WITNESSETH CLAUSK TO' PRO'VIDE- THAT THK'RESTATED
DEFINED BENEFIT PLAN IS, EFFECTIVE OCTOBER 1~ 1997;,
AMENDING ARTICLE I OF THE DEFINED BENEFIT PLAN TO'
CLARIFY THE DEFINITIO'N O'F""EMPLO'YEEr; AMENDING ARTICLE .
n O'F THE DEFINED' BENEFIT" PLAN TO' DEFINE- EMPLOYEES-
EXCLUDED FROM THE PLAN AND TO" PRO'VIDE, FO'R THE
INCLUSIO'N O'FEMPLO'YEES WITHNO'N-CO'NTRIBUTINGYKARS.O'Y'
SERVICE UNDER CERTAIN CIRCUMSTANCES; AMENDING
ARTICLE ill OF THE DEFINED BENEFIT PLAN TO' PROVIDE FO'R
CITY CO'NTRIBUTIO'NS IN AN AMOUNT NECESSARY TO' FUND THE
PLAN O'N A SO'UND ACTUARIAL BASIS, TO CLARIFY tHE
LIMITATIO'N O'N ANNUAL BENEFITS, TO' PROVIDE FOR USE OF
MO'RT ALITY TABLES TO' DETERMINE ACTUARIAL EQUIVALENTS, ,
TO CLARIFY TIlE MAXIMUM PERMISSIBLE AMO'UNT O'F ANNUAL
ADDITIONS, TO' PROVIDE FO'R A DEFlNlTIO'N OF ""APPLICABLE "
MORTALITY TABLE", AND TO'. ELIMINATE SECTION 3.07;
AMENDING ARTICLE IV" O'F THE DEFINED BENEFIT PLAN TO':'
PROVIDE FOR A THREE 'PERCENT CONTRIBUTION" BY" "
P ARTICIP ANTS, TO' PROVIDE FOR DIRECT TRANSFER O'F
ELIGIBLE ROLLOVER DISTRIBUTIONS, TO PROVIDE FOR THE
"PICK-UP" OF PARTICIPANT CONTRIBUTIO'NS BY THE
EMPLO'YER, TO' PROVIDE FOR THE TRANSFER OF THE
P ARTICIP ANT ACCOUNT BALANCE FROM THE MONEY PURCHASE
PENSION PLAN TO' THE DEFINED BENEFIT PLAN AND TRUST, AND
TO PROVIDE FOR THE DISTRIBUTION OF SUCH ACCOUNT
BALANCE UPON NORMAL RETIREMENT; AMENDING ARTICLE V
OF THE DEFINED BENEFIT PLAN TO PROVIDE A THREE PERCENT
BENEFIT MULTIPLIER FOR SERVICE AFTER OCTO'BER 1, 2000,
REVISING PRO'VISIONS RELATED TO' ACCRUAL YEAR O'F
SERVICE, AND DELETING THE FLO'O'R-OFFSET ARRANGEMENT; ,
AMENDING ARTICLE VI OF THE DEFINED BENEFIT PLAN TO'"
MO'DlFY THE AMOUNT PAYABLE TO' A PARTICIPANT IN A LUMP
SUM UPON EARLY RETIREMENT; AMENDING ARTICLE Vlll OF '
THE DEFINED BENEFIT PLAN TO MODIFY THE AMOUNT O'F
DEFERRED VESTED PENSIO'N PAYABLE TO' A PARTICIPANT IN A
LUMP SUM, CREATING A NEW SECTIO'N 8.05(B) TO' PRO'VIDE FO'R
ONE HUNDRED PERCENTvESIING OF REQIJIREo..P.AKIlCIPANT
CONTRIBUTIONS~ . AND , MAKING. TECHNICAL.., AMENDMENTS;::, .
AMENDING. ARTICLE IX OF THE DEFINED BENEFIT. PLAN.' TO- .
MODIFY THE. AMOUNT' PAYABI..K: IN A. LUMP' SUM TO' A
PARTICIPANT'S SURVIVOR; AMENDING ARTICLE X OF THE'
DEFINED BENEFIT PLAN TO MODIFY TIlE AMOUNT OF
NONFORFEITABLE ACCRUED BENEFIT ABOV-E.' WHICH'. A,
PARTICIPANT" 'MUST CONSENT' IN. WRITING " FOR' ANY
DISTRIBUTION~AND. MODIFYING THE.. AMOUNT OF ACCRUED:,
B~: NORMAL..IlEIIREMENTBENEFIT;'AND'D.EAl'K,R:N.D:lT,. '
PAYABLE TO A PARTICIPANT IN A LUMP SUM;' AMENDING
ARTICLE XI OF THE DEFINED BENEFIT. PLAN TO PERMIT THE". .,'
TRUSTEES TO ACCEPT' TRANSFER.OF' ASSETS 'IN ,THE MONEY
PURCHASE: PENSION.. PLAN;. 'PROVIDING> FOR: "CONFLICTS;:'
PROVIDING FOR: SEVERABn.ITY;:.. PROVIDING AN-, EFFECTIVE,"
DATE.
WHEREAS, the City Commission approved certain changes to the City's retirement
program for employees in July 2000 and September 2001; and
WHEREAS, the changes to the retirement program approved by the City Commission'
, require merging the Money Purchase Pension Plan and Trust for Employees of the City of
Winter Springs Plan and Trust with the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs; and amending provisions of the Defined Benefit Plan ,and Trust for
Employees of the City of Winter Springs;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF WINTER SPRINGS, FLORIDA:
Section 1.
A. That the Money Purchase Pension Plan and Trust' for Employees of the City of Winter
Springs be- merged into ~ Defined Benefit Plan and Trust for the- Employees of the- City of
Winter Springs, effective October 1,2000,
B. That the Money Purchase Plan and Trust for Employees of the City of Winter Springs
cease to exist as of October I, 2000.'
2
C. That upon the merger of the two plans. all. participant accounts and.aIl other-assets, of
the Money Purcl1ase Plan aodTmst fo~EmpIo.yees..ofthe City ofWinter-Spriogs,..togetherwitb;
earnings and interest thereon. be transferred to and become an' integral part of the Defined
Benefit Plan and. Trost. for Employees. of the; City of Winter- Springs; provided. that. said... ,
vdlli..ip-.wt aa:ounts' sball. be:avaiIable:.fordishibutiuo:. as ~tk;d..by' tire:-'Ddim:d.Bem:fit PIan--
and Trust for Employees of the City.'ofWinterspnngs,
Section 2.
That the Witnesseth. ClauSe. of the Defined. BenefitPlalnind Trust:forEmployees-of the
City of Winter Springs be amended as follows:
The City of Winter Springs establishescontinues. within this Trust Agreement.. a
Plan for the odmiflisfmtiOfl afld Elistrfflutiafl af eafltrfflutiafls made by tJle Emplayer fer
the purpose of providing retirement benefits for eligible Employees. This Plan is an
amended plan. in restated form. the original plan being effective October 1. 1997 and this
restated Plan is also effective October 1. 1997 (except to the extent otherwise provided
herein). The provisions of this Plan apply solely to an Employee whose employment
with the Employer terminates on or after the Effective Date of the Plan. If an Employee's
employment with the Employer terminates prior to the Effective Date. that Employee is
not entitled to any benefit under the Plan.
Section 3.
That Section 1.06 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
1.06 "Employee" means any employee of the Employer. Individuals who
perform services for the Employer in any capacity other than as an Employee. determined
pursuant to the books and records of the Emplover (e.g.. independent contractors or
leased employees within the meaning of Code & 414(n). even if such indiyiduals are
reclassified as Employees by any goyernmental agency (other than the Employer) or
iudicial decision). are not Employees for purooses of the Plan. and thus. are not eligible
to participate in the Plan.
Section 4.
3
That Sectiorr2.0Iof the DeffiIClUIeI1~ lffiIn.amtTmst:.fur::EinpIoyee!Eof.tbe:.c-rly of
Winn:r-Springs be. "nYPl'llfpdas follo~
2.01 Eligibility. Each Employee.fother, than an' Excluded.EmoIoveet. ~mes'
a Participant in the .Plan on the' first. day of the month- (if employed on that-, date)
imm....i"tpJy following: the,date..6 ~,a:fu:r bis-~'COmnt.."..=ucnt...I>an:=.
"Employment Commencement Date" means..the: date.. on: which: the, Employee:'first.
pel fUlllo an Hom:-ofSetvia:;fortheEmployc:r.::.'
fA) Excluded Empfoyee. .
(l) An Emplovee is. an Excluded. Emplovee if his. custOITlllJ'V weekly'
employment with the. Emolover'is less than 29 hours.. An Employee. is an,
Excluded. Emoloyee. if he. is actively oarticiDatinl!. (and. 'jrenefitirte". within the: . '
meaning ofTreas. Reg., & 1.410(b)-3) in anotheraua.Jifiedplarrmaintainedbv the:,
Emoloyer other than the Monev Purchase Pension Plan and Trust for Emolovees
of the City of Winter Smings. Rorida: (hereinafter. referred to as the- "Monev
Purchase. Plan").
(2) . If a Participant has not incurred a Separation from Service but becomes an
Excluded Emplovee. then 'during the period such a Participant ,is an Excluded
Employee. the Participant will not accrue a benefit under the Plan attributable to
any period during which he is an Excluded Emoloyee. However.. during such
period of exclusion. the Participant. without regard to employment classification.,
continues to receive credit for vesting under Article VIII for each included Year
of Service.
(3) If an Excluded Employee who is not a Participant becomes eligible to
participate in the Plan by reason of a change in employment classification. he will
participate in the Plan immediately if he has satisfied the eligibility conditions of
SectiOn 2.01 and would have been a Participant had he not been an Excluded
Employee during his period of Service. Furthermore. the Plan takes into account
all of the Participant's included Years of Service with the Employer as an
Excluded Employee for purposes of vesting credit under Article VIII.
(B) Emoloyees with Non-Contributine Service. Anv Employee who comoleted Years
of Service prior to adoption of Resolution No. 2003-44. but did not make contributions to
this Trust Fund or to the Money Purchase Plan. shall be credited with Years of Accrual
Service upon payment of the Reouired Participant Contributions due under this Plan and
the required participant contributions due under the Money Purchase Plan for such
servIce.
Section 5.
4
That Section 3.01 of the Defined Benefit Plan and TruSt for Employees of the. City of
Winter Springs be amended as follows:'
3.01 Amount.
ID-.The~Iayer &:Iefte ..ill HUtIte the eeaWilltttiel'lB FeeJtHft'lft ta fitful the s8!ltafths. .
b......h~ yo ~ . i6eEt.~ this PlIHe . TheEopfoyerintends:to:makesuch:contributiOlJS:'as-are:.
necessary tofund:thePIan'on'asoundactuarial basis..inaccmdam:e:withamrlicabldaw_" .,
ml-The Employer contnoutes to this Plan on the condition its.contnlmtion is not due
to a mistake of fact. The Trustee, upon written request from the Employer; must retumto.,
the Employer the amount 'of the: Employer's contribution: made, by. the; Employer. by
mistake. of fact:.. The. Trustee: will . not retumcany' portion of'the, Employer's contribution:
under the provisions of this paragraph more' than. one year after the Employermade,the:
contnbution' by mistake of fact:.. Furthermon;"the Trustee will' Dot increase. the. amount.of
the employer contribution returnable under this Section 3.01 foranyearnings attnbutable
to the contribution, but the Trustee will decrease the Employer contribution retwnable for
any losses attributable to it. '
Section 6.
That Section 3.05 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as foHows:
3.05 Limitation on Annual. Benefit. A Participant's Annual Benefit payable at
any time within a-Limitation Year may not exceed the limitations of this Section 3.05,
even if the benefit formula under the Plan would produce a greater Annual Benefit.
**********
(B) Commencement prior to age 62. If a Participant's Annual Benefit commences
prior to his attaining age 62, the Retirement Committee will adjust the $90,000 (or the
larger adjusted dollar amount) limitation of this Section 3.05 to the Actuarial Equivalent
of an Annual Benefit equal to such dollar limitation commencing at age 62. The
Actuarial Equivalent under the immediately preceding sentence may not be less than
$75,000 in the event a Participant's Annual Benefit commences at or after age -55. In the
event a Participant's Annual Benefit commences prior to age 55"the Actuarial Equivalent
will equal the greater of (1) the Actuarial Equivalent of a $75,000 Annual Benefit
commencing at age 55 or (2) the Actuarial Equivalent of a $90,000 (or larger adjusted
dollar amount) Annual Benefit commencing at age 62. To determine the Actuarial
Equivalent under this paragraph, the Retirement Committee will use an interest rate'
assumption equal to the greater of 5% per annum or the rate specifiedin-Section 1.12and
the Aoolicable Mortalitv Table.
5
(C) Comm~aIl:afterage..65:: I(a.Participant's AmmalBem:fit.ialUlIll...,~ after.-:.
his.attainingage 65, the Retirt:ment COlwmttee will' adjust the.$90,OOO (or larger adjusted .
dollar amoUDt) limitationof'this section 3:.o5'to, the.Actuarial Ei:pri.valent:ofao:Ammal
Benefit equal to such dollar limitation commencing: at age.. 65~ To determine.. the:'
Actuarial Equivalent under this paragraph; theRetirementCollllmt~ will usearrirrterest:.
rate assumption, equal to t:he::Iesserof 5%.per:ammm::orthe:mtI:;specified.mSecrimrl.l2.
and the AooliCabIe MortalitY T able~
... ....'...... ....
(E) Adjustment for Years of ServicefYears of Participation Less Than: 10_, ,The;.
Rlltl{iRltlRl AHBueI Beflefit$90.000 (or such lamer' adjusted dollar'amount) 'imtt<ttion
described in' this Section.'J"05' applies: to a:Participaot:who has: completed at,least10
Years of SefViee :with the EHtple-yer, ferJltlfl'6se8 ef tke:u lQQq<. llV~CempeB9&tieB-
liHlitatieB ed, hIlS seHlpISfetl at least 19 Y SIllS ef Participation:in the Pllin;..fer JHU'Jlsses sf
the dellltf' liHlitB!isB., If a P9ltieiJJlI:Bt kS5 less then 19 YeftfS sf Ssn-ie:e with the EHlpls:l'er '
at the riRle beRefits eSHlffleRse, the ,.Rf:b.~mefttCSRlRlittee will fRtlltiply IHs l{)Qq{,
&ytlmge CSRlpeRSarieB liRlittHieR ey a ffaekeR, ~e RttffleFBter sf whieh is the RtllMSr sf ..
Years af Service (iRell:ldiflg fmetioRal years) '.vith the EmployeraR8 the deRemiRater of,
whish is 10. If a Participant has less than 10 Years of Participation in the Plan at the time
his benefits commence, the Retirement Committee will multiply his dollar limitation by a
fraction, the numerator of which is the number of Years of Participation (including
fractional years) in the Plan and the denominator of which is 10. The reductions
described in this paragraph will not reduce a Participant's maximum ARfltlal BeRefitdollar
limitation to less than one-tenth of the maximum Al1fltl&l Bettefitdollar'lirnitation
determined without regard to the reductions.
(F) Alternate Forms of Payment. If the Trustee pays the Participant's benefit in a
form other than an Annual Benefit, the benefit paid may not exceed the Actuarial
Equivalent of the maximum Annual Benefit payable as a straight life annuity. To
determine the Actuarial Equivalent under this paragraph, the Retirement Committee will
use an interest rate assumption equal to the greater of 5% per annum or the rate specified
in Section 1.12 and the Applicable Mortalitv Table.
Section 7.
That Section 3.06 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
3.06 . Definitions - Article Ill. The definitions in this Section 3:06 apply to the
limitation provisions of Part 2 of Article m. For purposes.of Article III, the following
terms mean:
(A) General Definitions..,
6
* * * *. * * * *, * *
(4-) Annual.Addition.. Annual Additions.an::the~fulIowing amounts allocated.
on behalf of aParticipant fora,I.imitation: Year;.. undt:r:a:definP.d' contriburion'.plan:'
maintained.by the Empfoyer.- (i) all Employer-contributions;' (ii)aU' forfeitures;..
and (iii) all EmploY<:e contributions. Except to the extent, provided in Treasury
regulations,.. Ammal. AdditionS, include. excess:. contributions', described .in:, Code:.
~40 1 (k). excess aggregate contributions, described in Code ~40 1 (m).. irrespective.. : '
ofwhethcrtbe:pIan mslIibu:tQ,.OI. fo..fab .sucb~excess.ammmtsi.' Excess deferrals'
under Code. ~402(g). are.. rmtAnnuaL Additions. mrless:. distributed:. 'after: t:lte.
correction period, descn'bed inCOde~402(g). Amounts allocated. afteT-Man:h31.
1984. to an individual medical account (as defineti-in Code ~415(1)(2)) included
as part of a defined' benefit'plan maintained, by the. Employer"also are Annual,
Additions, Furthermon;...Annual. Additions. include:contributionspaid:onccmed.
after. December- Jl~ 1985. for taxable.. years:ending:-.a:fter December 31~ 1985~
attributable. to post-retirement"medical. bcldib. allocated:to the~ separate account: '
of a key employee;(as defmed.inCode.~419A(d)(3)}UDder a:.welfare. benefit.fund.
(Code ~419(e)) maintained by the Employer. Fora Limitation' Year. the Annual
Additions allocated on behalf of any Participant. to all defined contribution plans .
maintained by the Employer, may not exceed the Maximum Permissible Amount.
The "Maximum Permissible Amount" is the lesser of (I) $30,000 (or, if greater.
one fourtA of the defined benefit dollar limitfitioR$30.000 amount as adiusted
under Code S415(e)(l)(;\)g), or (II) 25% of the Participant's Compensation for
the Limitation Year. If there is a short Linritation Year because of a change in-
Limitation Year, the Retirement Committee will multiply the $30,000 limitation
(or larger limitation) on Annual Additions by the following fraction:
Number of months in the short Limitation Year
12~
(5) Year of Serviee. 1\ Plan Year 8uriRg ""flieh fiR Employee eompletes at
least 1,000 Hours of Applicable Mortality Table. The Aoplicable Mortalitv Table
means the mortality table specified in Code & 417(e)(3) and set forth in Revenue
Ruling 95-6 (or any applicable subsequent pronouncement issued bv Internal
Revenue Service.
Section 8.
That Section 3.07 of the Defined Benefit Plan and Trust fOJ" Employees of the City of
. Winter Springs be eliminated. '
Section 9.,
7
That Section .4.0 1 of the: Defii1ed. Benefit:.Plaiund, Trust:: ffir.EnpfoyetS oftl1e.:CIty of
WDm:r:-Springs be :un~edas. fuUows:::
4.01 PBRioiJ31lftt CeHtftlmtiem_ The PIOB flees Bet. P(}lI.Wt BeY. Rlquft.: Pafti...:t"~ "
eefflribMiefF.f.;RemriredParticToant'ContributionS. . The.P'arrditf:nor l1ermit'norrequire-". .'
Partici1)3lItCoJItributiomprior-to October:' I;... 2000. Effect:Ne:October~L 2000.: ~,
Particioant is remlired to contribute 3% of Comoensation.to'the Plan. which contribution "
shall re' considered the:, Required PattiCiUdUt- contribUtion: The- reouired- participant,
contribution shall. be deducted from'eacll'Partici~s Comoensati(]Jl: whenever such:. '
Comoensation is oaid. and' remitted 'to the TiUstee. . Required particiuant contributiotlS' .
shall be considered an Emplover "'oick-up" contribution, and 'shall be designated..as._.
emplover contnbutions. pursuanT. to Section 414(h) of the IntemalRevenue:' Code.:..
contingent uDon thecontributions.,beiiJg excluded from the: Particioant's gross-incomefor'
federal income: tax OUflJoses: . For all. other-oumoses of this. Plan. such',contributions.shalt..
be considered Particimmt.contributions.,.
Section 10.,
That Section 4.02 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
4.02 Participant R-ellever Cef!tributicms. THe PlaR' dees' Het flefffiit P-artieipam
mlle't'er eeHtribtltitlHsDirect Transfers of Eligible Rollover Distributions.
(A) General. This section applies to distributions made on or after October L 2002.
Notwithstanding anv provision of the plan to the contrary that would otherwise limit a
distributee's election under this section. a distributee mav elect at the time and in the
manner prescribed by the board, to have anv portion of an eligible rollover distribution
paid directlv to an eligible retirement plan specified bv the distribute in a direct rollover.
(B) Definitions.
(J) "Eligible rollover distribution" is anv distribution of all or anv portion of
the balance to the credit of the distributee. exceot that an eligible rollover.
distribution does not include: any distribution that is one of a series, of
substantiallv equal periodic payments (not less frequently than annually) made for
the life (or life expectancy) of the distribute or the ioint lives (or ioint life
expectancies) of the.distribute and the distributee's designated Beneficiary. or for
a specified period of ten vears or more: any distribution to the extent such
distribution is reQuired under section 401(a)(9) of the Code~ and the portion of
anv distribution that is not includible in gross income. Anv portion of anv
distribution which would be includible in gross income will be an eligible rollover
distribution if the distribution is made to an individual retirement account
described in section 408/a). to an individual retirement annuity described in
8
',1- ~i""'I;';jHU.IC""ba;:;::,.---1
Tbe.PlandDcs not pamitaor:tapD=. :'
. P"'",r;.,;pa.4~~':':""'--'.___;
section 408(b) or to a Qualified defined. contnbution plan descnbed, in section
401(a) or 403(a) that agrees to separately account. for amounts. so transferred:.
including separately accounting-forthe. portion of such distribution which: is not
so includible.
(2) ....Eligible retirementpfan~ is an individual retirement account described in:,
section 408( a) of the. Code.; .an' individual retirementanm:ritv- described'iJi.section: '
408(b) of the Code. an annuity plan descnbed in section.403(a) of the Code. an. '
eligible dd'..1I at . comoensationpfarr described, in' sectiorr 457(b) of': the' Code .'
which is maintained by an elig..'bie' emmoverdescribecl in section 4-57(e)(I){A)' of ~
the Code and which atrreeS to seoaratelv account forarnounts transferrectinto such -.
plan from this plan. an annuity contract described in section 403(b) of the. Code..
or a Qualified trust described' in section 40 I (a) of the Code.' that. accepts. the
distributees eligible:rollovenlistribution. This deiinitiorrshall also,amJIy ,in the.. .
case of an eligible rolloverdistributionto. the surviving,snollSe.
(3) "-oistributee~includes an ernolovee or former: ernolovee.;. In addition. the.'
employee's or formerempfoyee>s surviving spouse isa distributee wittr'remrrd.to.
the interest of the spouse.
(4) "Direct rollover" is a payment bv the plan to the eligible retirement plan
specified by the distributee.
(C) Rollovers or Transfers into ,the Fund. On or after the effective date of Resolution
No. 2003-44. the fund will accept member rollover cash contributions and/or direct cash
roll overs of distributions for the purchase of oermissive service credit under the Plan. as
follows:
(l) Direct Rollovers or Member Rollover Contributions from Other Plans.
The Plan will accept either a direct rollover of an eligible rollover distribution or a
member contribution of an eligible rollover distribution from a Qualified plan
described in section 403(a) of the Code. from an annuity contract described in
section 403(b) of the Code. or from an eligible plan under section 457(b) of the
Code. which is maintained bv a state. political subdivision of a state. or any
agency or instrumentality of a state or political subdivision of a state.
(2) Member Rollover Contributions from 401(a) Plans and 1RAs. The Plan
will accept a member rollover contribution of the portion of a distribution from
Qualified olan described in section 401(a) of the Code. or from an individual
retirement account or annuity described in section 408(a) or 408(b) of the Code.
that is eligible to be rolled over. and would otherwise be includible in, the
member's grOSS income..
Section 11.
9
That.a new Section:4-.01 oft:be:DefiiIedBendit:PlanamL TiusLfui.Empfoya:s-oftbeCity.
ofWmterSprings be:created.to n:ad:as follows:.
4.03 - Particinant Account Balance. Transferred- frorn'Memev PtirchasecPensiorr
Plan. A Participant's account:balaiIce.transfem:d.fromtbeMOnev:Pm:cbase:PensiOn:PIan. ',_,
and Trust for Emploveesof the City of Winter-Snri1U!S Dursuant to Resohition No~ 2003~,
44-. shall become 'an-irrte1!t3Ioart of this',TrustFiimE' movided.thatsuch'acco1J11t",balaiIc~'
olus interest at'a rate'eQ'ua.l.to'theinten:stI"llte'oo;3{}.vear.Trc:asurV.securitiesas,oubIiShed ' .
in the- Internal Revenue- Bulletin determined as of the calendar-month orecedingthe first'
day of the ,Plan year. and effective October I. 2003. a ,rate ,eQUal to the U,S. Treasurv,
Deoartment long4erm average rate -oublished on'the- last day of the 'calendar-month
preceding, the first day of the P Ian year; or' such' other: rate'that may be aooroved. by the:;,
U.S. TreasurvDeoartmentto-reolace the 30~vear Treasury bond-rate asa benchmark for
calculating lumo- sum oavoutsfrom: defined benefit plans~ shall be part of the Accroed.
Benefit oayable to aParticioant uoonnonnal retiremeitt.exceot asreduced,inaccordance:...
with Section 8.05.
Section 12.
That Section 5.02 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
5.02 Amount of Normal Retirement Pension! Accrued Benefit. The Annual
Benefit limitations of Article ill apply to the determination of a Participant's normal
retirement pension and Accrued Benefit in the manner prescribed in Section 3.05(H).
(A) Normal Retirement Pension.
(1) Benefit Formula. A Participant's normal retirement pension equals 2% of
the Participant's Average Compensation multiplied by his Years of Accrual
Service for service prior to October I. 2000. and 3% of the Participant's Average
Compensation multiplied by his Years of Accrual Service for service on and after
October 1. 2000. Such pension will be adiusted for any distribution in accordance
with Section 8.05. The maximum number-of Years of Accroal Service taken into
account in the normal retirement pension is 30. counting forward from the date of
initial participation to include any ourchased oast service.
(2)' Average Compensation. Average Compensation is the average of the
Participanfs Plan Compensation for the Averaging Period in the Participant's
Compensation History which results in the highest Average Compensation. A
Participant's Compensation History is the Participant's entire period of
employment with the Employer. ,The Averaging Period is 3 consecutive
Compensation periods (or the entire period of employment. if shorter). A
IO
Compensation period is the II-month period ending on the last day of the Plan
Year.
(B) Accrued BenefiL Subject to the Annual Benefit limitations of Article m. a
Participant's Accrued Benefit is the normal retirement pension accrued by the Participant
under the accrual formula provided in this paragraph (B).
( I) Method of Accrual. As of any date, a Participant's Accrued Benefit is his
normal retirement pension calcuIated.as of the determination:_ date;- based on the
Years..of Accrual Service:cn:ditedas' of Such date:. .'
(2) Year of Accrual Service. Years of Accrual Service are Years of Service as
determined WIder Section 8.06, including Years of Service completed prior t9 his, .
participation in the Plan. Any Employee who completed Y ears of Service arior to.
the adoption of Resolution No. 2003-44 but did not make contributions to this
Trust FWld oTto the Money Purchase Pension-Plan shall be credited with Years of
Accrual Service uoon oayment of the Reauired Particioant Contributions due
under this Plan and. the required participant contnbutions due under the Monev
Purchase Pension Plan for such service. Years of Accrual service also include
....years ofOualitied.Service". Years of Qualified Service means any or all years
of service perfomled bv the Participant as an emp.lovee of the Government of the
United States. any State or political subdivision thereof or any agency or
instrumentality of any of the foregoing. other than the Employer. but onlv if all of
the following conditions are satisfied:-
fa) ,the Participant-makes a voluntary contribution to the Plan. in an,amount
necessarv to fund the benefit attributable to such Years of Qualified Service (as
determined by the actuary for the Plan. utilizing the actuarial definitions used for
plan fundingoUTDoses) and which does not exceed the amount necessary to fund
the benefit attributable to such Years of Qualified Service:
(b) the Participant makes the voluntarv contribution described in paragraph
(a) above. in one lump sum payment to the Plan prior to receiving credit for such
Years of Qualified Service:
ec) the Particioant's Accrued Benefit is either 100% Nonforfeitable at the time
he makes the voluntary contnbution described in paragraoh (a) above or will
become 100% Nonforfeitable immediate Iv after receiving credit for such Years of
Oualified Service: and
Cd) the crediting of such Years of Qualified Service must not cause the
Particinant to receive a retirement benefit for the same Years of Oualified Service _
under more than one retirement plan.
(3). Fleer affset ItfFlHlgemoot. The ElBfllayer else ffiaiHtains tHe MeRey Ptlrehase
PeRsiaR VI&It &Ita Tflist fer ElHflleyees ef",e City ef WiBter 8priogs, Fleriae (tHe "MeBey
11
Pttreha5e PIe") ea die PaAieipams iH this PI&R alsa paRieipate iH the MaHey ~,
Pie. The R-etiremeRt Cemmittee will Feftttee die PaRieip8flt's ;\et!flled BeRefit iH this, .
PIe by the i\emarial EtJtHwleHtBeBefit tlerivetl &em the paRiaH af the PaAieipet's,
vested aeeaH:ftt Balmee iH the MaBey P~e PI8fI IHtribttmble te OOlfllayer--
eaBHibtttiaHs aRa Feqtiiretl partieip&Rt eeBHiButieBs mllEie ptJfStHlBt ta. die teffftS af the.
MaH~ Pttrehase PI8fI (ifleltidiHg !H1Y disHi"utiaRs ana/af' a~et H'Ilmfef:'l maae ffem the'
aeeEltwt Beleaee ef stteh Ptutteil'SBt. priar ta the Betteflt eefBIBeBeemt!Bt 8&te. e6er dHs
PI!H1). The iflteFestffttel:tSe8 te aeteffftiRe die AeRtilriaI EEltHvaIeRt BeReftt 8eft";e8 frem
the MaBey PttreJ:utse PI8fl, is die lIKe spee:ified iH &eet:iaB U 2 af this PIllB.., .\ maftBlity
asStHBJftieH will Bet apply' te fief. . P.the.~:Etpftvele&t af aisUHnlt:ieftS &JHtIeF."' ,
tHreet ffitHsfeF3 maae,&em the Pftftieip8:Ht's aeeatlRt "allwee iflthe MaHey PttFehase PI8fI '.
Ror to detef8lffie the .t..-etuarialEqtiivaleHt beRefit from the PartieipftRt's .tested aeeOtmt .
Balmee iH the MaHey PttFeh&se PI&R fer the peFied}Jfiaf' 16 the Bi!ftefit eelHHli!ReetReM'
Eiete wttler dHs PIBB. .
Section B.
That Section 6.01 of the Defined Benefit Plan andTrust for Employees of the CIty of
Winter Springs be amended as follows:
6.01 Eligibility for Early Retirement Pension. A Participant who has received
credit for at least 10 YearS of Aeel1:lal Service (as'defined in Section 8.06)and has
attained age 55 may elect an early retirement pension.' A Particip~nt who separates from
service after satisfYing the service requirement but not the age requirement may elect to
receive an early retirement pension upon satisfYing the age requirement. In additi9n, a
Participant who has completed 25 Years of .'\eeroal Service (as defined in Section 8,06)
may elect an early retirement pension. A Participant's early re~rement ,pension is his
Nonforfeitable Accrued Benefrtpayable at 'Normal Retirement Date without actuarial
reduction for early commencement but only if benefits commence on or after the
Participant attains age 55. , If an eligible Participant elects to commence his early
retirement pension prior to attaining age 55, such Participant's early retirement pension is
the Actuarial Equivalent of his Nonforfeitable Accrued Benefit payable at age 55.
Section 14.
That Section 6.02 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
6.02 Payment of Early Retirement Pension.
(a,A) If the present value of the Participant's early retirement pension does not exceed
$~3500,the Trustee will automaticallv pay the early retirement pension in lump
sum, as soon as administratively practicable after the Participant's Separation from
12
Service or. if later. after the:Participant satisfies.theeligibtlity requirements for an early
retiremmtpension.
(bID If the present; value: oftbe: Part:icipaD(s early. lau~, pcnsion:~ exceeds
~3500, the Trustee. win paythe~early-retirement'pension.in.tfreofumrall(tasorthe:
date elected by the Participant. A participant may elect to commence his early I etil emenL
pension as of the first day of any mOnth during:the_period he. is:eJigibte fortbeeady_
retirement pension and after he, bas separated.-fromService... If. the Participant_fails, to "
designate: 3' .distributimr. ~ then:- ,tbc:'Tmsb:e:', will: .cu~[.pa:yment:of"the-'. -early"
lai..;..~ poouMOIrnnu:coldlwu:;;w:ith:Article.JC.. '
Section 15.
That Section~8~03'ofthe.Defined:BenefitPlan;amiImst:foiEmployees-ofthe.Cityof: .
Winter Springs-be amended as follows:
8.03 Payment ofDefem:dVested Pension;:
(&d) If the present value ,of the Participant's deferred vested pension does not exceed
$~3.500, the Trustee will automaticallv pay the deferred vested pension in lump sum,
as soon as administratively practicable following the Participant's Separation from
Service. In no event may the distribution occur later than the 60th day following the
close of the Plan Year in which the Participant attains Normal Retirement Age.
(bID If the present value- of the Participant's deferred vested pension exceeds
~3500.theTrustee will pay the deferred vested pension-in the form elected by the'
Participant. A Participant may-elect to commence his deferred vested pension after'the,
Participant's Normal Retirement Date, If the Participant fails to elect a distribution date,
then the Trustee will commence payment of the deferred vested pension in accordance
with Article X.
Section 16.
That a new Section 8.05(B) of the Defined Benefit Plan and Trust for Employees of the
City of Winter-Springs be created to read as follows:
8.05 Vesting Schedule.
**********
(8) 100% Vestin~ of Required Participant Contributions. Each Participant is
immediately 100% vested with respect to his Reauired Participant Contributions. A'
Participant is entitled to receive a return. of his Required Participant Contributions.
contributed while a participant under the money purchase plan prior to October 1. 2000.
13
uoon kJlllillation 'of emolovrnent.. together with simule .interest. ata.rate:~eQualto the:..
interest rate on 30-vearTreasmv securities as.oublishedin.theInternal Revenue' Bulletin., .'
determined as of the calendar month orecedim! the: first: day of: the Plan vear.;.,and::
effective. October- 1-.200:1;':'30 rate equaltotbe.' U:S.: Treasury IkDartmcm: 1000000.o.tcrm'
average rateoublished on the' last day of the calendar-month orecedinl! the firstdav of-the:
Plan year. OT'such otherratc that may beaooroved by the D.S, Treasury' Deoartment.to..
replace the 30-vearTrea.sur:v bond rate'as:a bem:mnarldoTcalculatimdlDDIT.'sumoavouts: '
from defined benefit. plans. in lieu of any other benefit wuter the 'PIan_ The: amount.
received'as a disb ibutioD bvthe:Particioant'shall'beused:toreduce'theaccmedbenefit if'.
anv. at hisnonnalreti:rement'datetReauiredParticioant:culIb'ibutions,contributedon:and:! '.'
after October' I. 2000 are. 100% vested. and, shall' be included, in the "deferred vested' ,
benefit pavable. to the Participantuoon normal retirement date.. .'
Section 17..
That subsections (B), (C),.and (D) of Section 8.05 of the Defined Benefit Plan and Trost
for Employees of the City of Winter .springs be redesignated as subsections (C), (D), and (E)
respectively, and that the first sentence of redesignated Section 8.05(C) is amended as follows:
,8.05(Bg Vesting Schedule. Subject to Section 8.05(A) and Section 8.05(8). a
Participant's nonforfeitable percentage of his Accrued Benefit equals tlte percentage in
the following schedule:
Section 18.
That Section 8.08 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
8.08 Included Years of Service - Vesting. For purposes of determining "Years
of Service" Wlder Section 8.06, the Plan takes into account all Years of Qualified Service
credited to a Particioant DUrsuant to Section 5.02(8) and all Years of Service an
Employee completes with the Employer except:
(aA) Any Year of Service completed before a Break in Service; unless the Employee
completes a Year of Service after the Break in Service. This Break in Service rule will
not operate to recredit any Year of Service disregarded under clause (&!D..
(b~) Any Year of Service completed before a Break in Service if the number of the
Participant's consecutive. Breaks in Service equals of exceeds. the greater of 5' or the
aggregate number of the Years of Service prior to the Break. This Break in Service rule
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applies only if the P8rticipaDt.is ,0% vested:,in:hisAccruedBenefitderivedtromEnployer... ,
contributions at the time he has a. Break in. Service. Fmtherrnon; the aggregate: number- .
of Years of Serv.ice before a:.Break in,.St:r.W:e.does.notincludeany yeats of Service. not:
required to be taken: into accoUDtumfer::tbis. exa:ptimrby- reasOIt:ofany' priorBreak:.in:.
Service.. If the,RetirementConunitta:;-.Retire:ment' CO(lIInilkl;.disl~UJ:s. the:PatbUp-.w1's.
Years of Service under this exception; the Plan furfeits his pre'-Break in Service Accrued
BenefiL
(~ Any Year:of SCr:vice:'befure::the:J.JIan:.Yeariu:~whicb~the; P:ciI.~.wt:"lt;.;.d.tbe:'
age..ofl8_
Section- 19.
That subsections (B) and (C) ofSection'9.01 of the Defined.BenentPlim"and Trost for
Employees of the City of Winter Springs be amended as follows:
9.01 Preretirement Survivor Annuity .. Eligibility. If a married Participant dies
prior to his annuity starting date, the Retirement Committee will, direcUhe Trustee to
distribute to the Participant's surviving spouse a preretirement survivor annuity, unless
the Participant has a valid waiver election (as described in Section 9.02) in effect, or
unless the Participant and his spouse were not married throughout the one year period
ending on the date of his death.
**********
(B) Present Value Not Greater Than $~3.500. If the present value of the
preretirement survivor annuity is not greater than $~3.500, the Trustee will
automaticallv make the distribution in a lump sum, in lieu of the preretirement survivor
annuity. The distribution must occur on or before the annuity starting date.
(C) Surviving Spouse Elections. If the present value of the preretirement survivor
annuity exceeds ~3.500, the Participant's surviving spouse may elect to have the
Trustee commence payment of the preretirement survivor annuity as of the first day of
any month following the Participant's death, but not later than the applicable mandatory
distribution period described in Article X. A surviving spouse also.may elect any form ofcpayment described in Article X. in lieu of the preretirement survivor annuity (other than a
joint and survivor annuity). In the absence of an election by the surviving spouse, the
Retirement Committee will direct the Trustee to distribute the preretirement survivor
annuity as soon as administratively practicable following the close of the Plan Year in'
which the latest of the following events occurs: (1) the Participant's death; (2) the date the
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Retirement. CollllllinEe.n:a:iYes notitlcatioD:: of,or otber.wiSe.:e:m, r.im..; tIi&::.~'
death; or (3) thedate:the 'Partic:ipant'would,baveattainCd:NOrmal:&:tin.I~Age.:.
Section In.
That subsection (A) ofSectiOlJ' H}:Ol oftheDefined'13enefit"Plananci-Tmstfor: '
Employees of the City of Winter: Springs. be amended' ufoUows:.' " ,
10.01 FOrm:' of Benefit.._ Subjt:ct. to:~tbe:: lapWo;uK;llts:, of-, Section-lO.Oz,;.. tDe:.: . .
Retirement Committee \'\I'ill direct: the: Tiusree:-to paya. Participant" hiS Nonforfeitable,
Accrued Benefit in a fonn: permitted under Sectiorr. 10.05., Annuity payments ,will
continue unttl' the last scheduled paynient'coiocidentwith or immediately' pla;eding' the.:, ,
date of the,Participant~lHleath.or... if applicable,.:the.date:ofbissurvivors death....
(A) Consent. A Participant must consent;in'writing;_to anydistribution:dQUibcd.irr
this Article X if the present value. of the Participant's Nonforfeitable.Accrued.Benefit:
exceeds ~3.500. and the distribution commell':es priorto the Participant's attaiuillg
Normal Retirement Age. . Furthermore. the Participant's spouse. also must conSent;. in
writing. to any distnlmtion for which Section 10.02, requires. the spouse's consent. For
purposes of the consent requirements under this Article X, if the present value of the
Participant's Nonforfeitable Accrued Benefit, at the time. of any distribution, exceeds
~3.500. the Retirement Committee will treat that present value as exceeding
~3.500 for purposes of all subsequent Plan distributions to the Participant.
Section 21.
That subsection (B) of Section 10.02 of the Defined Benefit Plan and Trust for h
Employees ofthe City of Winter Springs be amended as follows:
10.02 Qualified Joint and Survivor Annuity.
**********
(B) Prese.nt Value Not Greater Than $:5;GOO3.500. If the present value of the
Participant's Accrued Benefit is not greater than ~3.500. the Trustee will
automaticallv pay the Participant's pension in a lump sum, in lieu of a qualified joint and
survivor annuity. The distribution must occur on or before the annuity starting date. The
consent requirements- of this Article X do not apply to a Participant subject to this
paragraph.
, Section 22.
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Thatsubsectiom(B) and (E) of Section 10.03 of the Defiited Benefit PIanandTrustfor
Employees.of the City of Winter Springsbeamended.as-follows:
10.03 Commencement"of Benefits: The Retirement' <::ulllluitta.:must:directthe:
Trustee to commence: distribUtion' of benefitS irraccordance with this Section:-,}O.03,'
subjecLto tbemaudatoJYdistribution.~~b,ofSectimrIO~06.
. *' *' *,,*,*,*,..*, *"
(B) Distribution to Participant Who Separates from'Service:AfterNormal RetU~ '"
Date. . The Retirement Committee. will direct the Trustee::to commence. distnbution to the:
Participant: ,
(I) Present Value:ofNonnalRetirementPensionNotExceeding ~3500,=
In lump'sum;.as soon as administratively practicable. fulJowing"the: Participant's'
separation from Service.. but not later than the 60th day. following.the.:C1ose of the:
Plan Year in which.thatseparation from Service occurs.
(2) Present Value of Normal Retirement Pension E)(ceeds~3.500.' In the
form and at the time elected by the Participant, as,permitted under this Article X.
The Participant may elect to commence distribution as soon as administratively
practicable following separation from Service or as of the first day of any
subsequent month.
..........
(E) Death of the Participant. If the Participant had commenced distribution. prior to'
his death, the Retirement Committee will direct the Trustee to make distribution to'the
Participant's Beneficiary in accordance with the distribution method in effect at the time
of death. If the deceased Participant had not commenced distribution, the Retirement
Committee will direct the Trustee to. distribute the Participant's death benefit in
accordance with paragraph (1) or paragraph (2), whichever applies, subject to the
requirements of Article IX.
(1) Present Value of Death Benefit Does Not Exceed $:S,0003.500. In lump
sum, as soon as administratively practicable following the date on which the
Retirement Committee receives notification of or otherwise confirms the
Participant's death.
(2) Present Value of Death Benefit Exceeds $:S;GOOJ.500: In the form and at
the time elected by the Participant or, if applicable by the Beneficiary; as
permitted under this Article X. Unless otherwise elected by the Participant and to
the extent permitted under Section 10.06, a Beneficiary may e1ect'to commence
distribution of the Participant's death benefit as of the first day of any month .
following the date the Retirement Committee receives notification of or otherwise
confirms the Participant's death. In addition to the other forms of distribution
11
available. undcr:,this; Article.Xrand. to:.tIie'extent pamitted:, uoder.section,,1 O.06~ a '
Beneficiary maY' elect to receive the' Participant'S' death berrefit in' monthly;.
quarterly or"amrual imtallments. over a 5 yem:period,. unless- the Participant., '
elected otherwise.. In' the. absem:e:.ofan: election;. the. Retirement:Cu.uuillttt:e::wilt
direct the Trustee to distribute the' Participant's' death benefit in. five . annual:
installment payments, commencing' as soon: as adminiStratively. practicabfe
following the. eml. of. the~. PImi:- Year:tbat: tbe:~~....d:: C........;u-=; receives:. .
notification. of or otherwise.confirms theJ>.articipant'Scdeath.: '
Section 'ZL .
That thefustpaxagraph. of Section 10 .OT 'of the, ,DefiDed:. Benefit PIan: and. Trust .fer .
Employees of the: City ofWinter.Springs be.amended asfollows~
10.07 Distributions Under. Domestic,Rdations' Ordi::rs:. Nothingcontaim:d.in:tbis,'
Plan will prevent the Trustee,.. in accordance: with the: direction of the. Retirement.
Committee, from complying with.the provisions' of a qualified domestic relations order
(as defined in Code ~414{p)). The Retirement Committee may adopt any Written
procedures relating to a qualified domestic relations order which the Retirement
Committee deems necessary for proper administration of the Plan. Thts~ Plan
sfleeifieallydoes not permits distribution to an alternate payee under a qualified domestic
relations order at aRY time, irrespeetive €If whethel'Until the Participant flas.-attaine6~ his
earliest retirement age (as defined under Code ~414(p)) under the Plan. 1'. distriel:ltieRto
1m alternate payee prier to the PartieipaRt's attaiRmeHt of earliest retiremeHt age is
available only if: (1) the order speeiiies distributien at that time €IT peffl'lits aRagreemeRt
betweeR the PllmaRa the alternate flaree t6 al:lthonze aR earlier aistribl:ltioR; aRd (2) if the
flreseRt ,>,all:le €If the alternate payee's benefits under the Plan exceeds $5,000, aRa the
order r-equires, the alternate payee consonts to aoy distribution oeel:lrriRg flrier to the
Participant's attaiflffleRt of earliest retiremeRt age. Nothing in this Section 10.07 permits
a Participant a right to receive distribution at a time otherwise not permitted under the
Plan nor does it permit the alternate payee to receive a form of payment not permitted
under the Plan.
Section 23.
That the first paragraph of Section 11.05 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
1 L05 Merger/Direct TranSfers. The Trustee will not consent to, or be a party to,.
any merger or conSolidation with another plan, or to a transfer of assets or liabilities to
another plan, unless immediately after the merger, consolidation or transfer, the surviving
Plan provides each Participant a benefit equal to or greater than the benefit each
Participant would have received had thePlantenninated.immediately before the merger
or consolidation or transfer. The Trustee possesses the specific authority to enter into
18
merger agn:ements onlirect:tmnsfer:of assetscagreements with the;,trustees of other: " "
retirement plans described:in:Code g40 l( a). amho acceptthe'direct transferof plan' '.
assets. or to. tIansfer plan.assets;.. as. aparty;to any..sw:h,agn:am:nt:.If theTrusteeaccepts. ,
a transfer of assets from:other:retirement.plansdescribed m:Codec gAOl( a) (ather-than. the ,
Monev Purchase'PIan).on-behalfof aParticipan~ the Trustee:'shall utilize.sucbassets to
provide additional Accrued Benefits forsuclr Participant: ~ Trustee Dossesses: the.
soeci&authoritv.to: acceot:a:tnmsfer:of assets of aU Qr'a:ny,D<JrtiOl1'o.faP.ar:ticioant:s
accountin the Monev Purchase Plan:.
Sectiorr2.4:_
That this resolution: shall supersede:any amhlt cOnfll~provisiODS of any previously.
adopted..resolutions",. ,
Section'25:
That sho.uld any section' or provision o.f this resolution- or any portion thereof. any
paragraph. sentence. or word be declared by a court of competent jurisdiction to. be invalid, such
decisian shall nat affect the validity af the remainder hereof as a whole or part thereof ather than
the part declared to. be invalid.
Sectio.n 26.
That this resalutio.n shall take effect as of October 1. 2000. .
PASSED and ADOPTED this _ day of
,2003.
~?~
MA R
ATTEST: '
CITY CLERK.. ,
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