HomeMy WebLinkAbout079-05RESOLUTION NO. 79-2005
APPROVING AN AMENDMENT TO THE TOWN OF DANVILLE DEFERRED
COMPENSATION PLAN
WHEREAS, the Town of Danville (the "Town") has employees currently participating in a
Section 457IRC, Deferred Compensation retirement savings plan administered by Lincoln
Life; and
WHEREAS, the plan must be modified to address IRS requirements on automatic rollovers
and distributions of small accounts; now, therefore, be it
RESOLVED, that the Danville Town Council approves the amendment to the Town of
Deferred Compensation Plan set forth in attached Exhibit 1 which is hereby
incorporated into this resolution; and, be it further
RESOLVED, that the Town Manager is hereby authorized to execute all necessary
documents prepared by Lincoln Life necessary to implement 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,
APPROVED AS TO FORM:
Andersen, Arnerich, Shimansky
CITY CLERK
2005 AMENDMENT
457(b) Governmental Deferred Compensation Plan Document (Form 32723) Concerning
Automatic RoHovers of Distributions of Smaller Accounts
THIS AMENDMENT to the TOWN OF DANVILLE 457(b) Deferred Compensation Plan (the
"plan") is effective as of March 28, 2005 pursuant to the requirements of Code Section
401(a)(31)(B);
WHEREAS, employer desires to amend the plan as provided herein and in accordance with
Section 8.02 of the plan document to meet the requirements of Code Section 401(a)(31)(B) as set
forth in the Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA") and the
Internal Revenue Service Notice 2005-5. All terms in this Amendment in italics are defined
terms and will have the same meaning as provided in theplan Unless provided o. therwise herein;
THEREFORE, theplan is hereby amended as follows:
Section 5.07 is amended by adding the following paragraphs at the end thereof:
If the value of the participant's total amount deferred is equal to or less than $1,000
(rollover contributions and earnings thereon will be included in calculating the $1,000),
the administrator, as described above, Shall distribute the value of the total amount
deferred to' the participant.
If the total amount deferred equals or exceeds $1,000 as described and limited in this
Section 5.07, and if the participant does not elect to have such distribution paid directly
to an eligible retirement plan specified by the participant in a direct rollover in
accordance with Section 6.02, and if the participant does not elect to receive the
distribution directly in a lump sum, then the administrator will direct the investment
provider to pay the distribution in a direct rollover to an individual retirement account
designated by the administrator pursuant to the requirements of Code section
401(a)(31)(B). ·
NOW THEREFORE~ this Amendment is hereby adopted as of the date provided below.
Employer: TOWN OF DANVILLE
Date:
Joseph A. Calabrigo
Town Manager
EXHIBIT 1