HomeMy WebLinkAbout124-98RESOLUTION NO. 124-98
AMENDING THE TOWN OF DANVILLE
MONEY PURCHASE PENSION PLAN AND TRUST AGREEMENT
WHEREAS, on July 1, 1984, the Town of Danville first established a Defined Contribution
Money Purchase Pension Plan (the Plan) to provide retirement benefits for Town employees, in
accordance with Internal Revenue Code section 401 (a); and
WHEREAS, on June 17, 1997, the Town Council approved modification to the Plan to update
and clarify language in the Plan, and to bring the Plan in compliance with existing policies and
procedures; and
WHEREAS, the Uniformed Services Employment and Reemployment Act requires pension
plans to allow employees who have taken a leave for military service to receive certain pension
benefits that they would have received but for the employee' s absence during military service;
and
WHEREAS, the Small Business Job Protection Act allows employers to delete language
previously required in their pension plans relating to family members of highly compensated
employees; and
WHEREAS, the proposed change does not affect the Town's financial obligations; now,
therefore, be it
RESOLVED, that the Danville Town Council approve adding Section 3.04 of the Town of
Danville Defined Contribution Money Purchase Pension Plan to read as follows:
"SECTION 3.04 Qualified Military Service. Notwithstanding any provision to
this Plan to the contrary, contributions, benefits and service credit with respect to
qualified military service will be provided in accordance with Code Section
414(u)"; and be it further
RESOLVED, that the Danville Town Council approve deleting the following language
from Section 5.07(e)(ii) of the Town of Danville Defined Contribution Money Purchase
Pension Plan:
"Effective for Plan'Years beginning 'before December'31, 1996, in determining
the Section 415 Compensation of a Participant for purposes of this limitation, an
Employee who is a family member of (i) a five-percent owner as defined in
Section 414(q)(3) of the Code, or (ii) one or more of the ten most highly
compensated employees during the year as defined in Section 414(q) of the Code,
shall be treated along with the Participant described in (i) and (ii) above as one
Employee.
The term "Family member" means the Spouse of the Participant and any lineal
descendants of the Participant who have not attained age nineteen (19) before the
close of the year. If as a result of these rules, the $150,000 limit is exceeded, the
limitation shall be prorated among the Participant and his or her family members
in proportion to each one' s Section 415 Compensation as determined prior to the
application of this limitation."
APPROVED by the Danville Town Council at a regular meeting on August 4, 1998, by the
following vote:
AYES: Waldo,
NOES: None
ABSTAINED: None
ABSENT: None
Arnerich, Doyle,
Greenberg, Shimansky
MAYOR
CITY ATTO~EY
ATTEST:
CITY CLERK
PAGE 2 OF RESOLUTION NO. 124-98