HomeMy WebLinkAbout077-05RESOLUTION NO. 77-2005
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 July 5, 2005 by the
following vote:
AYES: Doyle,
NOES: None
ABSTAINED: None
ABSENT: None
Stepper,
Andersen, Arnerich, Shimansky
MAYOR
APPROVED AS TO FORM:
CITY CLERK
Town of Danville
· Money Purchase Plan and Trust Agreement
(As Amended and Restated effective July 1, 2001)
THIS AGREEMENT, made and entered into this __ day of , , by and
between Town of Danville organized under the laws of the State of Califomia with principal
offices at Danville, Califomia (hereinafter called the "Employer") and the Town Manager· and
the finance director (hereinafter referred to as the Trustees):
WITNESSETH:
That at a meeting of the Town Council held on the 5th day of July, 2005, certain amendments to
the Money Purchase Plan and Trust were ratified authorized and direCted:
Now, therefore, it is agreed by and between the parties hereto that the aforementioned Money
Purchase Plan and Trust Agreement be and it is hereby amended effective March 28, 2005 as
follows:
1. Section 8.03 is restated to read as follows:
Failure to Elect a Form of Distribution. If a Participant has failed to elect a form
of distribution under Section 8.02 or section 8.12 and the present value of the
Participant's entire nonforfeitable interest in his or her Account at the time of his
or her termination of employment equals or exceeds $I,000 and does not exceed
$5,000, the Plan Administrator shall direct the Trustee to distribute such benefit
into an individual retirement account described in Section 408(a) of the Code
designated by the Plan Administrator pursuant to the requirements of Section
401(a)(31)(B) of the Code.
Section 8.10 is restated to read as follows:
Involuntary Cash Outs. -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 $1,000, 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 from
January 1, 2002 to March 28, 2005 only, 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.
EXHIBIT 1