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HomeMy WebLinkAbout1996 09 09 Regular Item F ~, ~- COMMISSION AGENDA ITEM F REGULAR X CONSENT INFORMATIONAL September 9. 1996 Meeting ~_. ) - MGR. Aut' orization REQUEST: The General Services Department requests that the City Commission adopt the Eighth Amendment to the City of Winter Springs amended and restated Money Purchase Pension Plan and Trust for the employees of the City of Winter Springs, Florida, effective October 01, 1996. PURPOSE: The purpose of this agenda item is to allow the City Commission to adopt the Eighth Amendment to the amended and restated Money Purchase Pension Plan and Trust for the employees of the City of Winter Springs, Florida. CONSIDERA TIONS: 1. On April 30, 1996, the City Commission adopted an amended Employee's Pension Plan. 2. The amended plan does the following: * Increases the employer's contribution from six percent (6%) to seven percent (7%) of gross pay for the Fiscal Year 1997. * Requires that each participant contribute one percent (] %) of gross pay for Fiscal Year 1997. * Effective date is October 01, ] 996 /~ .~.\ September 9, 1996 AGENDA ITEM 1.... Page 2 'l, 3. The effects of the "Pick-Up" provisions as defined in City Attorney Tom Lang's letter ofJuly 29, 1996 are as follows: a. Employee contributions are pre-tax for Federal Income Tax purposes. This means that the employee contribution is reduced by the employee's marginal tax rate. b. Social Security Tax must still be paid by the employer and employee on the gross amount of the employee contribution. c. The employee contribution is discounted by the employee's marginal tax rate as authorized by Section 414(h)(2) of the Federal Income Tax Code. d. The effect is that the employee's contribution of one percent (1 %) for Fiscal Year 1997 and two percent (2%) for Fiscal Year 1998, is going to decrease by an amount equivalent to the employee's marginal tax rate. For example, an employee whose marginal tax rate is twenty percent (20%), will have his/her pay decreased by one percent less .20 or .80%. e. The effect of this ruling is that all employee contributions will be taxable upon departure from the City and both employer and employee contributions will be taxable after the vesting schedules engage after four (4) years or upon retirement from the City. f Employee contributions will be eligible for tax-free rollover into an IRA if the employee so chooses. 4. The potential disadvantages of the plan are: a. Additional complication of subjecting employee contribution to Social Security but not to Income Tax. b. If the City sponsors a "Section 457" Plan, which it does in PEBSCO, the employee's contribution does not count as part of their "includible compensation", Currently, the City limits contributions to twenty-five percent (25%) up to $7,500 maximum. The employee contribution will compound this amount. Combined employer pension and 457 plan contributions cannot exceed thirty- three and a third (33%%) of gross pay. The pension attorney is currently checking to determine if the City or the employee has responsibility to control this amount. '," September 9, 1996 AGENDA ITEM l Page 3 c. Since employee's contributions are not considered compensation for Federal Income Tax reporting purposes (IRS Form W-2), the employees level of benefit under Group Disability, Workers Compensation, and Life Insurance will decrease if those benefits are paid according to the employee's gross pay. The City of Winter Springs has no City sponsored Group Disability and Life Insurance benefits, and Life Insurance is $10,000 across the board. The only benefit that will be affected is Worker's Compensation which is one hundred percent (100%) of pay. ISSUES: 1. Does the City Commission desire to adopt the "Pick-Up" provision recommended by the Pension Board of Trustees and Pension Board attorney? 2. If not, then what type of plans does the City Commission desire? There are no other options offered by the Board of Pension Trustees. FUNDING: Funding requirements are approximately: 80% General Fund 20% Enterprise Funds City 7% Contribution Employee 1 % Contribution City 7% Contribution Employee 1 % Contribution FY97 $243,120 $ 34,720 $60,780 $ 8,680 IMPLEMENTA TION SCHEDULE: October 01, 1996 September 9, 1996 AGENDA ITEM..L Page 4 RECOMMENDA TIONS: That the City Commission adopt the Eighth Amendment to the amended and restated Money Purchase Pension Plan and Trust for the employees of the City of Winter Springs, Florida effective October 01, 1996. ATTACHMENTS: a. Approved Agenda Item of April 30, 1996. b. Eighth Amendment c. Attorney Tom Lang's letter of July 29,1996. d. Commission Action of April 30, 1996 COMMISSION ACTION: , COMMISSION AGENDA ITEM II REGULAR X CONSENT INFORMATIONAL April 30. 1996 Special Meeting MGR 'fvjI{ IDEP Authorization REQUEST: The City Manager requesting the City Commission consider alternatives for increasing the defined contribution of the City Pension Plan from 6% per year to 10% per year. PURPOSE: The purpose of this Commission Item is for the City ~ommission to elect an alternative for improving the City Pension System. CONSIDERA TIONS: The City Manager was mandated by the Commission to develop recommendations for improving the City's retirement plan, In response to the Manager's direction, the General Services Department conducted pension surveys of all fifty-one (51) cities in Florida with Defined Contribution Plans. Data was also obtained from the 1995 Florida Local Government Retirement System Annual Report prepared by the Department of Management Services Division of Retirement, and the International City Management Association. Based on our survey data, the average contribution of cities in Florida with defined contribution plans is 9.2% with 7% contributed by cities and 2.2% by employees. According to International City ManagemeIlt Association representatives, the national average is approximately 10% for total contributions. I.C.M.A. did not have comparative information on the mix of employee and employer contributions in the 10% figure. ......, ,. " April 30, 1996 Special Meeting AGENDA ITEM Page 2 On April 23, 1996, the City Pension Board voted unanimously to recommend the City Commission increase the defined contribution of the plan from a 6% employer contribution to a 10% employer contribution as quickly as economically feasible. The alternative for a split employer/employee contribution was rejected for the following reasons: 1, The split employee/employer contributions would result in the increased cost and complexity of two separate accounting systems to account for the City contribution and employee contribution. 2. Cost of changing the plan: Attorney costs for rewriting the plan for the split alternative is estimated to be between $5,000 - $7,500 as compared to $500 for increasing the employer contributions from 6% to 10%. Allocation costs would be $100 higher in the employer/employee contribution plan. The Investment Management Fee would remain the same. 3. Low employee morale resulting from a mandatory employee contribution. 4. Overall Simplification and Ease of Administration: The straight City contribution plan would be less complex to administer because City contributions would not require two accounting systems, investment systems, new plan documents, etc. ISSUES: The issues that need to be addressed are as follows: 1. Does the Commission desire to adopt the Pension Board's recommendation to increase the City contribution rate for the Pension Fund from 6% to 10% as rapidly as possible, 2. If the Commission decides to adopt the Pension Board's recommendation, which of the following schedules does it desire to follow: a, 1 % increase for four (4) years, b. 2% increase for two (2) years, c. 4% increase in year one. -, . ~' " .{il~..~..,~.~:1...\~.. ., ,..:.' , ~.. .:... ......... ...;.\,..... :..;'..;.'",.;~.~1Ir:;1l;.l~1;1 April 30, 1996 Special Meeting AGENDA ITEM Page 3 3. If the Commission decides not to adopt the Pension Board's recommendation of a City contribution of 10%, what City/employee contribution combination does it desire? The alternatives are: Employee City Total a. 1% 9% 10% b. 2% 8% 10 % c. 3% 7% 10% d. 4% 6% 10% I am in agreement with the recommendations of the Pension Committee for the following reasons: In general, the 10% City contribution rate is the simplest to understand and administer. The primary objective of the City in changing the plan is to offer a better benefits package to help recruit and retain employees. Currently, the City's turnover rate of 19% is unacceptable. While the cost of retraining, leave, and pension benefit payments upon voluntary termination have not been determined, it is surely costing the City unacceptable levels of financial and productivity losses. The City's pension has been so far below that of other cities, I am truly uncomfortable in asking our employees to help us play catch up. FUNDING: Based on current contribution formulas, the funding requirements are as follows: $43,400 per 1 % of contributions plus expenses, identified in Option A and B. The funding requirements are option A, increasing the City contribution from 6% to 10% and Option B, employer/employee contributions, ^, April 30, 1996 Special Meeting AGENDA ITEM Page 4 Funding will be split between the General Funds, and the Enterprise Funds approximately as follows: General 80% Enterprise Funds 20% RECOMMENDATION: The City Manager recommends that the Commission approve increasing the employer contribution from 6% to 10%. If the Commission approves the 10% employer contribution option, the City Manager recommends the 4% increase be implemented; 2% in Fiscal Year 1996/97, and 2% in Fiscal Year 1997/98. If the Commission approves a split contribution alternative, the alternative be fully implemented in Fiscal Year 1996/97. IMPLEMENTA TION SCHEDULE: Same as presented in the recommendation. ATTACHMENTS: 1. Option A - City Contributions. 2. Option B - Employer/Employee Contributions. COMMISSION ACTION: " < ., . &;. . . OPTION A ~loyer Contribution Plan Current 6% ($260,400) + ITIwosed 4% ($173,600) Total 10% ($434,000) Attorney Fees $500.00 (One time fee) " , .~, .r > , ... OPTION B City Contribution (CC)/Employee Contribution (EC) 9%/1 % 8%/2% 7%/3% 6%/4% CC CC CC CC $390,700 $347,300 $303,900 $260,500 EC EC EC EC $ 43,400 $ 86,800 $130,200 $173,600 Total $434,100 $434,100 $434,100 $434,100 Attorney Fees $ 7,500 $ 7,500 $ 7,500 $ 7,500 . ~ ~ " ~~? 12~~~ MON_J, 7 :_.u..YAX 1 407 422 8262 A L M & C l4J 001 p ~r~~~. f FAX TRANSMITTAL COVER SHEET ~ JUL 3 0 1996 DATE: 7-~ Cf -q(,o # CITY OF WINTER SPRINGS City Manager FROM: I OM ~ . . ALLEN, LANG, MO SON & CUROTIO, PA 340 NORTH ORANGE AVENUE PHONE: (407) 422-8250 POST OFFICE BOX 3628 FAX: (407) 422-8262 ORLANDO, FLORIDA 32802 .KfSY\.. M c. LeWLOv-~' TO: ATTN: FAX NO.: ~ ~ 7 -- (pq j d- RE: DOCUMENT DESCRIPTION: NO. OF PAGES (INCLUDING COVER SHEET): ORIGINAL WILL: BE SENT REGULAR 11AIL BE SENT VIA OVERNIGHT BE AVAILABLE FOR PIC~-UP K BE SENT VIA COURIER NOT BE SENT MESSAGE: IF PROBLEMS WITH TRANSMISSIONr PLEASE CALL: (407) 422-8250 CONFIDENTIALITY NOTICE . THE DOCUMENTS ACCOMPANYING THIS FACSIMILE TRANSMISSION CONTAIN PRIVILEGED AND CONFIDENTIAL I~FORMATION INTENDED ONLY FOR THE USE OF THE INDIVIDUAL TO WHOM ADDRESSED. IF THE READER OF THIS DOCU- MENT IS NOT THE ADDRESSEEr OR THE EMPLOYEE OR AGENT RESPONSIBLE TO DELIVER IT TO THE ADDRESSEE r .YOU ARE HEREBY NOTIFIED THAT ANY COPYING, DISCLOSURE, DISSEMINATION OR DISTRIBUTION OF THESE DOCUMENTS OR THEIR CONTENTS TO ANYONE OTHER THAN THE ADDRESSEE, IS . STRICTLY PROHIBITED. IF YOU HAVE RECEIVED' THIS COMMUNICATION DUE TO TRANSMISSION ERROR, PLEASE, IMMEDIATELY NOTIFY THE SENDER BY' TELEPHONE, AND RETURN THE ORIGINAL DOCUMENTS TO US AT OUR ,ABOVE ADDRESS VIA THE' U.S. POSTAL SERVICE. THANK YOU. .......~~-::.... ...L -':Vl -':"M V..U... ..", l..o ilJ. Q(, V ~uu~ ~;t i=- ( ALLEN, LANG, MORRISON & CUROTTO. P..A. .A..T1'OR"i'EYS.A..T LAW 340 NORTH ORANGE: AVENUe: ORl.ANCO, F1..0RIOA 32801-1611 POST OF'F'ICE 80X 3628 ORLANOO, F'LORICA 32802-3628 TELEPHONE: (407) 422-6250 F'AX (407) 422-8262 July 29, 1996 Mr. Ron McLemore, City Manager 1126 East state Route 434 winter springs, Florida 32708 Re: Pension Plan Amendment Dear Mr. McLemore: Enclosed you will find the amendment needed for the winter Springs plan. It basically increases the employer's contribution from 6% of pay to 7% of pay, and requires that each participant contribute 1% of pay. . The effective date is October 1, 1996, the start of the next plan year. It is not clear to me that the Commissioners wanted to wait until October 1, but that is my best reading of the minutes in the context of the recommendations made by the pension board (which were to increase the employer contributions by 2% effective October 1,1996). The amendments basically bring the terminology of the document into line with the new account for each participant that will be needed to keep track of the required employee contributions and the earnings and losses allocated thereto; separate accounting is needed because the employee contributions (as adjusted for earnings or losses) are fully vested at all times, rather than being subject 'to the plan's vesting schedule. We assumed the City would want to try to make the employee contributions pre-tax for federal income tax purposes rather than after-tax. The enclosed amendment attempts to achieve this end. Social security taxes still must be paid by the employer and the employee on the amount of the employee contributions, however. This bit of income tax sleight-of-hand is provided by section 414(h) (2) just for governments sponsoring qualified plans. If the governmental sponsor states it is "picking up" the employees' contributions and if the employees do not have the option of taking those dollars home rather than having them contributed to the plan, then the contributions are free of current income tax tot he employees because for tax purposes the dollars are employer contributions. (Employer contributions to a tax-qualified plan, such as the City's 6% contribution, ordinarily do not cause current FROM l-jn7-d?~-R?S? 'l7-?Q-<lR no;, 17 "M "Il? 4' .~ Mr. Ron McLemore, city Manager July 29, 1996 Page 2 taxable income to employees.) But they still are "employee" contributions for purposes of the rule that employee contributions are fully vested at all times. The result is that an employee's take-home pay is going to go down less than a full one percent starting October 1, 1996 - a happy bit of news to report to employees. This is because an employee's pay is lowered by one percent before the employer applies the withholding tax tables. So the income tax withholding per paycheck will drop (causing take-home pay to increase), partially offsetting the one percent reduction. An employee whose income tax withholding is at a 20% rate, for example, has his pay decreased by one percent but the tax withholding drops by 20% of one percent, so the net is that the employee's take-home pay goes down by only eight-tenths of one percent. This "pick-up" treatment also means the employees will not be receiving complicated distributions at retirement or other termination of employment consisting of mostly taxable funds and some non-taxable return of after-tax dollars. (This was a factor in favor of having the overall contribution increase consist solely of City contributions, when the proposal was presented to the Commissioners.) Because the required employee contributions are treated as employer contributions for tax purposes, all of the amounts distributed will be taxable income to the employees (but as usual will be capable of a tax-free rollover into an IRA if the participant chooses to do so). The only disadvantages to the pick-up treatment, as compared to having the contributions come from after-tax dollars by subtracting one percent of salary from each paycheck just like other salary deductions, seem to be: . The complication of having funds that are subject to Social Security tax but not to income tax withholding . If the city sponsors a "section 457" plan for one or more of its employees, the contributions do not count as part of their "includible compensation" for purposes of the rule that no more than one-third of an employee's includible compensation can be contributed to such a plan during a particular year . Because the contributions would not be part of the employees' compensation for purposes of federal income tax reporting (IRS Form W-2), it is possible that the level of coverage enjoyed by the employee under a group disability, life insurance or ?~OM !-407-422-8262 07-29-96 05: 17 PM P03 ;; ~. Mr. Ron McLemore, city Manager July 29, 1996 Page 3 workers' compensation program would go down a bit (to the extent those benefits are paid according to the employees' compensation level, if the definition of compensation in such a program is keyed off of the definition for income tax purposes) . On balance, we recommend the use of the "pick up" provision that has been inc1uded in the enclosed amendment. Very s, Thomas F. Lang TFL/jka Enclosures FROM [-407-422-826? ". ".:;:~;::~.' ~.:.:~~ .' .; "-::.:: :-:. ':'~<_:':..f '.:~~!fr:~;.:~::~: ::~~...:.' ;~':'::f~: .~~~~{}~;: ';:;':~?;;~~F'i;~;."7::=";~ < ;.; ::-;;:.~;~'" ;~;> ,:. :~I~;;-;:~:.:.~;:67'::"~:~~'~.~;~Jf~~~~~C!<~?~~~~~1~~~~:S:~ .--_':"'::'-"-"~':':"'" ~UUi) .. , , '>0 EIGHTH &~NDMENT TO THE AMENDED AND RESTATED MONEY PURCHASE PENSION PLAN AND TRUST FOR EMPLOYEES OF THE CITY OF WINTER SPRINGS, FLORIDA THE CITY OF WINTER SPRINGS, FLORIDA, a municipality incorpo- rated under the laws of the State of Florida, and the BOARD OF TRUSTEES of the Amended and Restated Money Purchase Pension Plan and Trust for Employees of City of Winter Springs (the "Plan") hereby agree this day of , 1996 to amend the Plan as follows, effective October 1, 1996: 1. The references to "Employer Contribution Account" are changed to "account" in the following places: a. Section 4.03 b. Section 6.01 c. Section 6.02(a) d. Section 6.02 (e) (ii) e. Section 6.02(g) f. Section 6.02 (h) g. Section 6.03(a) h. Section 6.03 (b) i. Section 6.05(b) j. Section 6.05{d) k. Section 6.05(h) 2. Section 1.02 is amended to read: 1.02 "Annual Addition" means the sum of the follow- ing amounts credited to a participant's account for a Limitation Year: ' (a) Employee contributions; (b) Employer contributions; and (c) Amounts allocated to an individual medical ac- count (as defined in Code Section 415 (l) (2)) that is part of any defined benefit plan maintained by the Employer. "ROM 1-407-422-8262 - ";j;;'{'fE~'f":?~i~~:3~1~~~~i9;h~:!:;~~;~f:5:~~~~;~~~~;;1f;?ji:~~;W~lf~ig~~;~~i~;t~{:;~1~'[i~~~T~~[ii~J~1. . ' . ~ ~." ,::;l~~ ,'. ~~~',~~::' UI/;;:~/~O lYlUl~ il:iq ~AA i qUi q22 B202 ,~M& C @006 .. ", .t_ 3. The last sentence of Section 1.05 is deleted. 4. Section 1.07 is amended to read: 1.07 "Compensation" means total compensation paid or accrued by the Employer to an Employee during his pe- riod of participation in a Plan Year, including regular salary and wages, overtime pay, bonuses, commissions and compensation used to pay employee contributions required by Section 3.03 (even though such contributions are picked up by the Employer for federal income tax pur- poses pursuant to that Section). 5. Section 1.13A is added immediately following Section 1.13, to read: 1.13A "Employee Contribution Account" means the ac- count established and maintained by the Trustee for each Participant with respect to his total interest in the Plan and Trust attributable to the partic{pant's contri- butions made under Section 3.03. 6. Section 1.17 is amended to read: 1.17 "Forfeiture" means that portion of a Participant's Employer Contribution Account that is not vested, and occurs on the earlier of: (a) the distribution of the entire Employee Contribution Account and the entire vested portion of the Employer Contribution Account, or (b) the last day of the Plan Year in which the participant incurs five (5) consecutive one-year Breaks in Service (as defined in Section 1.04). 7. Section 1.37 is amended to read: 1.37 "Vested Interest" means that portion of a participant's Employer Contribution Account that is non- forfeitable and the participant's entire Employee Contribution Account. " '::~.~:~.:~;~~.;;~> FROM 1-407-42?-8?62 ? "gj:,~:,j:,i;~\;;i.;1"~,5;;,~[;!~t::,"~i;~~i0,l~~~;~!,LtP;i:":",!;~"~\"~~1;~:;~";~~:~j;;i~~~j;!f;~;!:i~il,,f, ,.' . 07/29/96 .MON-=7:_1_~AX ~.~_~2~_~_2~_.___AL.1L& C --:0'__"-'-;-'" .. 0" ' ~- 8. The caption to Article III is amended to read: ARTICLE III CONTRIBUTIONS 9. Section 3.01(i} is amended by deleting "six perc~nt (6%)" and replacing it with "seven percent (7%)". 10. Section 3.03 is added to Article III, to read: 3.03 bmount of Employee Contributions. (a) Each Participant is required to contribute one percent (1%) of his or her Compensation to this Plan. No Participant shall have the right to discontinue or vary the rate of such contributions. ,No Rarticipant shall have the option of receiving the contributed amounts directly rather than having the contributed amounts paid into the Plan. (b) The Employer hereby elects to "pick up" (within the meaning of section 414(h) (2) of the Code) on behalf of each Participant the contributions required by the foregoing paragraph. 11. Section 4.01(a) is amended to read: (a) The Trustee shall establish and maintain an Employee Contribution AGcount and an Employer Contribution Account in the name of each Participant, to which shall be credited as of each Anniversary Date all amounts allocated to the Participant as hereinafter set forth. 12. Section 4.02(a) is amended to read: (a) Notwithstanding anything to the contrary con- tained in this Plan, the Annual Addition (as defined in Section 1.02) to a Participant's account for a Plan Year shall not exceed the lesser of $30,000 (or such greater amount as may be determined by the Secretary of the Treasu~y) or twenty-five percent (25%) of the' Participant's Adjusted Compensation for that Plan Year. For purposes of this limitation, all defined contribu- tion plans maintained by the Employer shall be consid- ered one plan, and "Adjusted Compensation" shall mean the participant's Compensation less the amount of the 3 ?ROM 1-407-422-8262 0'7-29-96 05: 1'7 PM . .... .,: ,," ", " ", : ~;, ,.:. .' ~. ~).:.'" 'ji,)':-- . ; .' :~':J.:):.>;'::~:';r..i>'~I~\! ~?~';D''//lt~~;~f~~~i~:L~ ::"::',., ::;~.~ ;~ .~:~. >: -.: . . .. . ~007 PO'7 "":.,";i" ;. UI/~~/~tl MON 17:15 FAX 1 407 422 ~_.26 2_____A L. M~ C "', ,A:- (It. Participant's contributions made pursuant to Section 3.03. 13. The last sentence of 6.02(c) is amended to read: In the event a Participant separates from service with the Employer prior to the beginning of the above elec- tion period, the election period as to that Participant shall begin on the date ~f such separation from service. 14. Section 6.04(a) is amended to read: (a) The benefits payable under this Plan to a Terminated Participant (as defined in Section 1.32) shall consist of the vested portion of his Employer Contribution Account (as defined in Section 1.14 and de- termined as of the next Valuation Date) and his entire Employee Contribution Account (as defined -in Section 1.13A and determined as of the next Valuation Date). 15. All of that part of Section 6.04(b) that precedes the schedule set forth therein is amended to read: (b) The nonforfeitable portion of a Participant's Employer Contribution Account shall be a percentage of the total amount credited to his Employer Contribution Account, determined on the basis of the nurrber of the Participant's Years of Service with the Employer (excluding service prior to age eighteen (18)), accord- ing to the following schedule: 16. The first sentence of Section 6.04(c) is amended to read: (c) The Terminated Participant's Employee Contribution Account and the vested portion of his Employer Contribution Account shall be distributed in accordance with Section 6.05, except that a Cash Out (as defined in Section 1.05) may be made to a Terminated Participant from his Vested Interest after such Participant terminates employment with the Employer, notwithstanding the fact that the Participant may not have incurred a Break in Service. 17. Section 6.04(f) (ii) is amended to read: (ii) In the case of a Participant who did not have any vested interest in his Employer Contribution Account, Years of Service before his Break in Service FROM 1-407-422-8262 A : ~:'~~,-" :.~,i~', '~.:,',!.",;-.-, '.r.;::,!..:~,..:,,'~-_~~,"J~'.".::~~".':'..:,~,;~ ..~~:,.:.<.i.;,':..i,._:'.:.,..',:..,~,.,;,'~.::;,~;,'_.,;.'./ .:\: ::.:::;:; -; :,,'! ':::: l;":,<'\:ij: ... o' . . r '_' ~ ...~"..",.. '::I~..'~.~:;.~~~:", '1~''l''':r:'~' ::::::.:.. :. ::';' .~.~ ','" ~;":~::-(~ - .'.~ . :. 07-29-95 05: 17 PM .. ". ~,,'.. .. ,,~.... ;:" , @008 .' i f i r. , pos " .:j 07/29/96 MON 17:16 FAX 1 407 422 8262 A L M & C @Q09 ; '~'. r \.~. ..... ~ shall not be taken into account if the number of his consecutive Breaks in Service equals or exceeds the greater of (A) five (5), or (B) the aggregate number of his pre-break Years of Service; 16. Section 6.04(g) is amended to read: (g) Separate Employer Contribution Accounts shall be maintained for prebreak contributions (if not dis- tributed pursuant to Section 6.04(c)) and post-break contributions made by the Employer on behalf of Former participants who are rehired before incurring five (5) consecutive Breaks in Service, and both accounts will share in the earnings and losses of the Plan. Except as herein amended, the Plan shall remain unchanged and continue in full force and effect. Signed, sealed and delivered in the presence of: AS TO ~HE EMPLOYER: (SEAL ) CITY OF WINTER SPRINGS By: Title: Date: AS TO THE TRUSTEE: BOARD OF TRUSTEES By: Title: Date: (S EAL) c; ?ROM [-407-422-8262 ::: ';;, ';,~:' -: .~~ :; .~: /LI'>z:~..:;~"::' ..:;...:....~ :~ .w.~ ~ ," : . .; "',1"..;-: :." 07-29-96 05: 17 PM PO 9 ~ . J -:.. , .~. :''': 7..:-".'.~ 7'" ~.\~:~:~~: ~{~:;'~I~::~~.~1C::~ ..... ...