HomeMy WebLinkAbout052-02RESOLUTION NO. 52-2002
APPROVING AMENDMENTS TO THE TOWN OF DANVILLE MONEY
PURCHASE PENSION PLAN AND TRUST
WHEREAS, the Town of Danville adopted its Money Purchase Pension Plan and Trust (the
"Plan") in July 1996; and
WHEREAS, the Town's Plan was approved by the Internal Revenue Service in 1998 as fully
complying with all applicable federal laws; and
WHEREAS, changes in federal law now necessitate amendments to the Town's plan in order to
fully comply with federal law; now, therefore, be it
RESOLVED, that the Danville Town Council approves the amendments to the Town of
Danville Money Purchase Pension Plan and Trust set forth in attached Exhibit 1 which is hereby
incorporated into this resolution.
APPROVED by the Danville Town Council at a regular meeting on June 4, 2002 by the
following vote:
AYES:
NOES: None
ABSTAINED:None
ABSENT: Arner±ch
Waldo, Doyle, Greenberg, Shimansky
APPROVED AS TO FORM:
CITY ATTORNEY
ATTEST:
CITY CLERK
CHANGES TO PENSION PLAN
The following changes to the Town of Danville's existing Money Purchase Plan and Trust are
shown in redline/strikeout format:
· Section 1.06 "Compensation." Add the following language: "In the case of a
Participant who first became a participant in the Plan before July 1, !996,200L the OBRA '93
annual compensation limit shall not apply to the extent the amount of Compensation which is
allowed to be taken into account under the Plan would be reduced below the amount which was
allowed to be taken into account under the Plan as in effect on July 1, 1993.
Effective January 1, 2002, the annual compensation of any Participant taken into
account pursuant to this definition shall not exceed the limit set forth in Section 401(a)(17),
as adiusted by the Secretary of the Treasury for increased in the cost of living."
· Section 1.24 Change to read as follows: "Restatement Date" shall mean July 1,
..... 2001.
· Section 5.07 "Definitions" Change the following definitions to read as follows:
(d) "Maximum Permissible Amount". For a Limitation Year, the Maximum Permissible
Amount with respect to any Participant shall be the lesser of (1)~.~,~e~n nnn w-r^~ ..~ ~,-~--~-,* ..... v..~
.~ .......the dollar ............. in effect mnderhm~t set forth in Code Section 415(b~(1)(A_a~4ff
· me Cede), as adjusted, or (2) 100 percent (25 percent, immediately prior to January 1, 2002)
of the Participant's Section 415 Compensation for the Limitation Year.
(e)(ii~) A Participant's Section 415 Compensation taken into account for purposes of this
Section shall not exceed one h.:m~ed c,n., ,k ...... ~ .~..no~ t~ ~n ann
.... ~ .............. , ....,~the limit set forth in
Code Section 401(a)(17), as adjusted by the Secretary of Treasury at the same time and in the
same manner as under Section 415(d) of the Code, except ,k~, .... : ......... ,h:o~. ~o ...., ~
,~,,1*;,.~o .,c · ~ n nan ohM1 h ...... A~A *.. +~ .... * 1 ...... * ~...1G.I~ ^t · 1 n nnn 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) or (ii) above as one Employee.
· ARTICLE VI change to read as follows:
"Effective January 1, 2002, the Plan, at the direction of and in the discretion of the
Plan Administrator, shall accept the following types of rollovers:
~aj Direct Rollovers. A direct rollover of an Eligible Rollover
Distribution from:
(1} a qualified plan described in Section 401(a) or 403(a) of the Code;
2~ an annuity contract described in Section 403(b) of the Code; or
(3J 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.
(bi Participant Rollover Contributions from Other Plans. A Participant
contribution of an Eligible Rollover Distribution from:
1~ a qualified plan described in Section 401(a) or 403(a) of the Code;
2~ an annuity contract described in Section 403(b} of the Code; or
3~ 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."
· Section 8.10 "Involuntary Cash Outs." Change to read as follows:
"Notwithstanding any other provision of this Article, if the present value of a Participant's entire
nonforfeitable interest in his or her Account at the time of his or her termination of employment
does not exceed $3,500,5,000, the Plan Administrator shall direct the Trustee to distribute such
benefit to the Participant or his or her designated Beneficiary in a lump sum. Effective January
1, 2002, the value of a Participant's entire nonforfeitable interest in his or her Account
shall be determined without regard to that portion of the Account that is attributable to
rollover contributions (and earnings allocable thereto) within the meaning of Section
402(c), 403(a)(4). 403(b](8}. 408(d}(3](A](ii}. and 457(e](16} of the Code."
· Section 8.12(a) Change to read as follows: "Eligible Rollover Distribution shall
mcan 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
a series of substantially equal periodic payments (not less frequently than annually) made for the
life (or life expectancy) of the Distributee or the joint lives (or joint life expectancies) of the
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Distributee 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; m~d the portion of any distribution that is not includable in gross income_, and effective
July 1, 2000, a hardshil~ distribution from the Plan, if applicable.
· Section 8.12(b) Change to read as follows: "Eligible Retirement Plan shall mean
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 annuity contract described in Section 403(b) of the Code (effective
January 1, 2002), a government Iran described in Section 457 of the Plan (effective January
1, 2002)~_or a qualified trust described in Section 401(a) of the Code, that accepts the
Distributee's Eligible Rollover Distribution. However, in the case of an Eligible Rollover
Distribution to the surviving Spouse~ made l~rior to January 1, 2002, an Eligible Retirement
Plan shall mean an individual retirement account or individual retirement annuity."
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