HomeMy WebLinkAbout071-2012RESOLUTION NO. 71-2012
ADOPTING THE TOWN OF DANVILLE DEFERRED COMPENSATION PLAN, AS
AMENDED AND RESTATED EFFECTIVE JULY 1, 2012
WHEREAS, the Town of Danville adopted a 457(b) Governmental Deferred
Compensation Plan (the "Plan'), offered through Lincoln Financial Group, which Plan
was last amended in 2004; and
WHEREAS, it is appropriate to adopt an amended and restated Plan to reflect
applicable changes in federal law and to add Roth IRA's as an investment option under
the Plan; now, therefore, be it
RESOLVED, that the Danville Town Council adopts the Town's 457(b) Governmental
Deferred Compensation Plan, as amended and restated effective July 1, as set forth in
attached Exhibit 1 which is hereby incorporated into this resolution.
APPROVED by the Danville Town Council at a regular meeting on May 15, 2012 by the
following vote:
AYES Andersen, Arnerich, Stepper, Storer
NOES: None
ABSTAINED: None
ABSENT Doyle
MAYOR
APPROVED AS TO FORM: ATTEST: rl
l �(
CITY ATTORNEY CITY CLERK
r] Lincoln
Financial Group@
Town of Danville
Lincoln Alliance Program
457(b) Governmental
Deferred Compensation Plan
This document is not an IRS approved prototype and
Lincoln National Life Insurance Company (Lincoln Alliance'
Program) makes no guarantees or warranties, expressed
or implied, regarding the tax effects of this proposed language.
Lincoln Alliance Program recommends that the plan sponsor
and any participating employer consult legal counsel or a tax
advisor regarding the adoption of this plan.
The Lincoln National Life Insurance Company
1300 South Clinton Street
PO Box 2340
Fort Wayne, Indiana 46802
Phone 800- 4LINCOLN
(c) 2003 Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates
Form 32723 ALAO 11/06 Includes Automatic Rollovers of Distributions of Smaller Accounts
Lincoln Alliance Program 457(b) Governmental Deferred Compensation Plan EXHIBIT 1
Table of Contents
I. Introduction ....................... .................................................................................................................................................................. I
II . Definitions ............................................................................................................................................................. ..............................1
III. Administration .................................................................................................................................................... ..............................2
IV. Participation in the plan ..................................................................................................................................... ..............................2
V. Distribution procedures ....................................................................................................................................... ..............................4
VI. Form of distributions .......................................................................................................................................... ..............................5
VII. Leave of absence ................................................................. ...............................
VIII Amendment or termination of plan ................................. ...............................
IX . Relationship to other plans .................................................. ...............................
X . No Transfer in lieu of benefits ............................................... ...............................
............................... 5
..6
.......................... 6
......................................... ............................... 6
XI . Non - assignability ................................................................................................................................................ ..............................6
XII. Assets .................................................................................................................................................................. ..............................6
XIII Participation by administrative members ..................................................................................................... ..............................6
XIV. Employer participation .................... ...............................
.......................... ............................... 6
XV. Disclaimer with respect to investments ........................................................................................................... ..............................7
XVI. Plan -to -plan transfers ....................................................................................................................................... ..............................7
XVII. Protection under the Uniformed Services Employment and Reemployment Rights Act of 1994 ............ ..............................8
XVIII. Interpretation ................................................................................................................................................ ..............................8
XIX Participant Loans ............................................................................................................................................. ..............................8
Deferred Compensation Plan of
Town of Danville
I. Introduction
In accordance with the provisions of Town of Danville
(Citation to state or local law, board resolution, etc.
authorizing this deferred compensation plan), Town of
Danville the employer, hereby establishes the Town of
Danville 457(b) Deferred Compensation Plan ( "plan ")
pursuant to Section 457(b) of the Code.
This plan is an "eligible deferred compensation plan" as that
term is defined under Section 457(b) of the Code for
employers described in 457(e)(1)(A) of the Code, and is not
governed by Section 457(f) of the Code. The plan shall
operate independently of, and in addition to, any 457(f) plan
maintained by the employer and shall not constitute a
modification of any such 457(f) plan or any other deferred
compensation plan being maintained by the employer.
Nothing contained in this plan shall be deemed to constitute
an employment contract or agreement for services between a
participant and the employer nor shall it be deemed to give a
participant any right to be retained in the employ of, or
modify the terms of any employment contract or agreement
for services between a participant and the employer.
H. Definitions
2.01 Administrator shall mean the person or persons
appointed by the employer to administer the plan. If none is
appointed, the employer shall be deemed the administrator.
2.02 Beneficiary shall mean the persons or entities designated
by a participant who are entitled to benefits following the
participant's death pursuant to Section 5.02 or an alternate
payee as described in Section 5.08.
2.03 Code shall mean the Internal Revenue Code of 1986, as
amended, or any future United States internal revenue law.
References herein to specific Section numbers shall be
deemed to refer to corresponding provisions of any future
United States internal revenue law.
2.04 Compensation shall mean all payments made to an
employee by the employer as remuneration for services
rendered, including salaries and fees.
2.05 Employee shall mean any employee (including an elected
or appointed official) who performs services for and receives
any type of compensation from the employer (or any agency,
department, subdivision or instrumentality of the employer)
for whom services are rendered.
2.06 Employer shall mean Town of Danville.
2.07 Includible compensation shall mean, for purposes of the
limitation set forth in Section 4.02, compensation for services
performed for the employer as provided under 415(c)(3) of the
Code with respect to "participant's compensation." The
amount of includible compensation is determined without
regard to any community property laws.
2.08 Normal retirement age shall mean age 55. Normal
retirement age shall mean, the age that is on or after the earlier
of (1) age 65, (2) the age at which a participant has the right to
retire and receive, under the basic defined benefit pension plan
of the state, immediate retirement benefits without actuarial or
similar reduction or (3) the normal retirement age as described
in the employer's Money Purchase Plan. The normal
retirement age may not be later than age 70 ' / 2. Alternatively,
a plan may provide that a participant is allowed to designate a
normal retirement age within these ages which is deemed to
be made upon a catch -up election under Section 4.03.
2.09 Participant shall mean any employee who executes a
participation agreement with the administrator assenting to
the provisions of this plan, once the agreement has been
approved by the administrator. The administrator, if
otherwise eligible, may participate in the plan.
2.10 Participation agreement shall mean the agreement
executed and filed by an employee with the employer pursuant
to Section 4.0 1, in which the employee elects to become a
participant in the plan.
2.11 Plan year shall mean the calendar year.
2.12 Rollover shall mean a tax -free transfer of all or a portion
of an eligible rollover distribution amount from one eligible
retirement plan to another eligible plan pursuant Section
402(c) of the Code.
2.13 Severance from Employment shall mean the
participant's termination from service with the employer for
any reason, including death, disability, or retirement.
2.14 Total amount deferred shall mean, with respect to each
participant, the sum of all compensation deferred under the
plan, plus income or less loss thereon calculated in accordance
with Section 4.09 attributable to the investment options
designated in the participant's participation agreement(s)
under which such compensation was deferred and in any
subsequent election(s) to change investment options. Total
amount deferred shall include non - elective contributions as
described in Section 14.01. Except as otherwise specifically
indicated, total amount deferred shall include any rollover
amount held by the plan.
Lincoln Alliance Program 457(b) Governmental Deferred Compensation Plan
2.15 Unforeseeable emergency shall mean a severe financial
hardship of the participant or beneficiary resulting from an
illness or accident of the participant or beneficiary, the
participant's or beneficiary's spouse or the participant's or
beneficiary's dependent (as defined in Section 152(a) of the
Code); loss of the participant's or beneficiary's property due
to casualty including the need to rebuild a home following
damage to a home not otherwise covered by homeowner's
insurance; or other similar extraordinary and unforeseeable
circumstances arising as a result of events beyond the control
of the participant or the beneficiary. Examples of severe
financial hardship include (1) imminent foreclosure of or
eviction from the participant's or beneficiary's primary
residence, (2) the need to pay for medical expenses, including
non - refundable deductibles, as well as for the cost of
prescription drug medication, and (3) the need to pay for
funeral expenses of a spouse or a dependent (as defined in
Section 152(a) of the Code). The administrator shall
determine in its sole discretion whether a hardship to a
participant constitutes an unforeseeable emergency.
III. Administration
3.01 Administration
This plan shall be administered by the administrator, who
shall represent the employer in all matters concerning the
administration of this plan.
3.02 Appointment and termination of administrator
The Town of Danville shall be the administrator. The rights,
powers, privileges, and duties of the administrator shall pass
to each successor administrator as appointed by the employer.
3.03 Powers of the administrator
Subject to any applicable laws, the administrator shall have
full power and authority to adopt rules and regulations for the
administration of the plan, and to interpret, alter, amend, or
revoke any rules and regulations so adopted.
3.04 Actions of the administrator
Every action taken by the administrator shall be presumed to
be a fair and reasonable exercise of the authority vested in or
the duties imposed upon it. The administrator shall be
deemed to have exercised reasonable care, diligence and
prudence and to have acted impartially as to all persons
interested, unless the contrary be proven by affirmative
evidence. The administrator shall not be liable for amounts
payable under the plan.
3.05 Reports and records
For convenience and to facilitate the orderly administration of
the plan, the administrator shall maintain a deferred
compensation ledger account with respect to each participant.
3.06 Delegation of duties
Subject to any applicable laws and any approvals required by
the employer, the administrator may delegate any or all of its
powers and duties hereunder to another person, persons, or
entity, and may pay reasonable compensation for such services
as an administrative expense of the plan, to the extent such
compensation is not otherwise paid.
IV. Participation in the plan
4.01 Enrollment in the plan
(a) An employee may become a participant by executing a
participation agreement. Compensation will be deferred
for any calendar month only if a participation agreement
providing for such deferral is executed by the participant
and approved by the administrator or its designee before
the beginning of such month.
(b) A new employee may defer compensation payable in the
calendar month during which the participant first
becomes an employee if a participation agreement
providing for the deferral is entered into on or before the
first day on which the participant performs services for
the employer.
(c) By signing the participation agreement, the participant
elects to participate in this plan and consents to the
deferral by the employer and the amount specified in the
participation agreement from the participant's gross
compensation for each pay period.
4.02 Deferral limitations
Except as provided in Section 4.03 and 4.04, the maximum
that may be deferred under the plan for any taxable year of a
participant shall not exceed the lesser of (a) the scheduled
amount under Section 457(e)(15)(A) of the Code (as adjusted
for cost of living increases pursuant to Section 457(e)(1 5)(B)
of the Code) or (b) 100% of the participant's includible
compensation. Amounts contributed to this plan as rollover
distributions are not taken into account for purposes of the
deferral limit as set forth in this Section 4.02.
In the case of a person who participates in more than one
deferred compensation plan governed by Section 457(b) of the
Code, the limitations set forth in Sections 4.02, 4.03, and 4.04
shall apply to all such plans considered together. The
limitation of this Section 4.02 shall not apply to any qualified
governmental excess benefit arrangement (as defined in
Section 415(m)(3) of the Code), and benefits provided under
such an arrangement shall not be taken into account in
determining whether the plan is an eligible deferred
compensation plan.
4.03 Limited catch -up
Lincoln Alliance Program 457(b) Governmental Deferred Compensation Plan
For one or more of the participant's last three taxable years
ending before attaining normal retirement age under the plan,
the maximum deferral shall be the lesser of:
(a) Twice the dollar amount in effect under Section
457(e)(15) of the Code, or
(b) The sum of
(1) the limitations established for purposes of Section
4.02 of the plan for such taxable year (determined
without regard to this Section 4.03), plus
(2) so much of the limitation established under Section
4.02 for prior taxable years (beginning after
December 31, 1978 and during all or any portion of
which the participant was eligible to participate in
this plan) as has not theretofore been used under
Sections 4.02 or 4.03.
This limited catch -up is not available in the years in
which the participant's contribution limitation is greater
Under Section 4.04.
4.04 Age 50 Catch -up
Any participant who is age 50 before the end of the plan year
may make additional deferrals to the plan if their contributions
are otherwise limited by the application of Section 4.02 above.
Such additional deferrals shall be made in accordance with
Section 414(v) of the Code. This additional deferral is not
available in the years in which the participant's contribution
limitation is greater under Section 4.03.
4.05 Disallowing deferrals
The participant acknowledges the right of the administrator to
disallow deferral of compensation under the plan in excess of
the limitations stated above. However, the administrator shall
have no liability to a participant if the administrator fails to
disallow a deferral in excess of such limitations, if the
participant's participation agreement directed such deferral.
4.06 Modification of participation agreement .
A participant may modify the participation agreement with
respect to future amounts in accordance with Section 4.01 at
such time as authorized by the administrator.
4.07 Revocation of participation agreement
A participant, may at any time, revoke his agreement to defer
compensation by filing a written request for revocation with
the administrator on a form approved by the administrator, at
least 30 days prior to the effective date of the revocation.
However, his total amount deferred shall be distributed only
as provided in Articles V and VI.
4.08 Reinstatement of participation agreement
A participant who has experienced a leave of absence, as set
forth in Article VII, or revoked his participation agreement as
set forth in Section 4.07 above, may again execute a new
participation agreement to defer compensation not yet earned.
4.09 Choice of Investment
Income will be earned on amounts deferred under the plan in
accordance with the following procedure. The administrator
will, in its sole discretion, select certain investment options to
be made available for the investment of the total amount
deferred of each participant. These investment options may
include annuity contracts.
Each participant will designate on his participation
agreement, or other form as provided by the administrator, the
investment option or options in which his total amount
deferred will be invested. If the investment chosen by the
participant experiences a gain, the participant's benefits under
the plan likewise will reflect income for that period. If the
investment chosen by a participant experiences a loss, the
participant's benefits under the plan likewise will reflect a
loss for that period. The administrator may, from time to
time, change the investment options made available under the
plan and may invest such funds in a manner, as it deems
prudent. If the administrator eliminates a certain investment
option, all participants who had chosen that investment option
may select another investment option; participants shall have
no right to require the administrator to select or retain any
particular investment option; and the administrator may invest
in the investment funds of its own choosing. Aparticipant
may, from time to time, (whether before or after payments
have commenced under the plan) on such forms and in
accordance with such rules and procedures as the
administrator may, from time to time, prescribe, change his
choice of investment option. Any change with respect to
investment options made by either the administrator or a
participant, however, may affect only income to be earned
after that change.
4.10 Rollover
Rollover contributions are permitted to be made to the plan at
the discretion of the administrator. This plan may accept
amounts eligible under the Code for rollover to a Section
457(b) governmental plan, including rollovers from 401(a)
plans, 457(b) governmental plans, traditional IRAs and 403(b)
plans, as otherwise permitted by Section 402(c) or 408(d) of
the Code. Notwithstanding the preceding sentence, the plan
shall not accept rollover loans. This plan shall separately
account for rollovers from 401(a) plans, 403(b) plans, and
traditional IRAs. Amounts attributable to rollovers that are
maintained in separate accounts are permitted to be distributed
at any time even though distribution of other amounts, as
described in Article V, are restricted pursuant to 457(d)(1)(A)
of the Code.
4.11 Deferral of sick, vacation, and back pay
Lincoln Alliance Program 457(b) Governmental Deferred Compensation Plan
Subject to the employer's discretion, a participant may elect to
defer accumulated sick pay, accumulated vacation pay, and
back pay if a participation agreement is entered into before
the beginning of the month in which the amounts would
otherwise be paid or made available and the participant is an
employee in that month. In the case of accumulated sick pay,
vacation pay, or back pay that is payable before the
participant has a severance from employment, the
requirements of the preceding sentence are deemed to be
satisfied in the participation agreement providing for the
deferral is entered into before the amount is currently made
available. Any deferrals made under Section 4.11 are subject
to the maximum deferral limitations set forth under Section
4.02.
V. Distribution procedures
5.01 Commencement of Benefit
A Participant is permitted to receive a distribution from the
Plan as soon as administratively possible following his
severance from employment. Subject to the provisions of
Section 5.07 (Election to receive small amounts) and Section
5.05 (Required Minimum Distributions) a Participant (and
spouse, if applicable) that does not consent to a distribution
will be deemed to have deferred the Commencement of
Benefit to a later date. Such date will not be later than the
date defined in Section 5.04 (Required begin date).
All irrevocable elections to defer Commencement of Benefit
payments made prior to December 1, 2002 and defaulted
distributions (other than a defaulted distribution to an annuity
option) may be voided with respect to amounts not already
distributed at the election of the participant or beneficiary.
5.02 Survivor Benefits
In the event of a participant's death prior to the distribution of
all amounts of his total amount deferred, such remaining
amounts shall be paid to the participant's beneficiary
commencing not later than 90 days after the participant's
death. Such distribution shall be in the form of a single lump
sum payment or regularly scheduled payments, at the election
of the participant in the participation agreement or (if there is
no such election by the participant) of the beneficiary after the
participant's death but at least 30 days (or such lesser number
of days as the administrator may from time to time specify)
prior to the commencement of payments. Each participant
may designate in his participation agreement a beneficiary or
beneficiaries to receive any amounts which may be distributed
in the event of his death prior to the complete distribution of
the total amount deferred. A participant may change his
designation of beneficiaries at any time by filing a proper
application with the administrator. If no such designation is
in effect on a participant's death, or if the designated
beneficiary does not survive the participant by 30 days, the
participant's beneficiary shall be, in the following order, his
surviving spouse, child, parent, sibling in such priority order
and in equal shares if there is more than one individual in a
category, and then to any other persons determined in the sole
discretion of the administrator. Should the administrator
choose not to exercise such discretion, payment will be made
to the participant's estate. The plan administrator should
review the investment contract prior to exercising such
discretion.
5.03 - Reserved.
5.04 Required beginning date
The entire interest of the participant will be distributed, or
commence to be distributed, not later than April 1 following
the later of the calendar year in which the participant attains
age 70 1/2 or in the calendar year in which the participant
retires ( "required beginning date "), in amounts as determined
by Section 401(a)(9) of the Code and the Regulations
promulgated thereunder.
5.05 Required Minimum Distributions
The plan will apply the required minimum distribution rules
under Section 401(a)(9) of the Code and the Regulations
promulgated thereunder, notwithstanding any other provisions
of this plan to the contrary.
5.06 Unforeseeable Emergency
Notwithstanding any other provision herein, in the event of an
unforeseeable emergency as defined in Section 2.15 hereof, a
participant may make a request to the administrator for
payment of all or a portion of the total amount deferred to the
date of payment. If the application for payment is approved
by the administrator, payment will be made within 60 days
following such approval. Payment shall be limited strictly to
that amount reasonably necessary to meet the situation
constituting the unforeseeable emergency, including any
amounts necessary to pay any federal, state, or local income
taxes or penalties reasonably anticipated to result from such
distribution. Furthermore, payments may not be made to the
extent that a hardship is or may be relieved through
reimbursement or compensation by insurance or otherwise, by
liquidation of the participant's assets (to the extent such
liquidation does not itself cause severe financial hardship), or
by cessation of deferrals under the plan. Any remaining
amounts shall be paid in accordance with Articles V and VI of
the plan.
5.07 Election to receive small amounts
Notwithstanding the other provisions of this Article V, a
participant may elect to receive (or at the discretion of the
administrator, the plan may distribute to the participant
without the participant's consent) the full amount of the
participant's total amount deferred if (i) such total amount
deferred does not exceed the limitation under Section
411(a)(11)(A) of the Code, (ii) no amount has been deferred
under the plan with respect to such participant during the two -
year period ending on the date of the distribution, and (iii)
Lincoln Alliance Program 457(b) Governmental Deferred Compensation Plan
there has been no prior distribution under the plan to such
participant to which this Section 5.07 applied.
If the value of the participant's total amount deferred is equal
to or less than $5,000 (rollover contributions and earnings
thereon will be included in calculating the $5,000), the
administrator, as described above, may distribute the value of
the total amount deferred to the participant.
If the administrator chooses to distribute the total amount
deferred to the participant as described and limited in this
Section 5.07, 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, or 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
requirement of Code section 40 1 (a)(3 1)(B).
5.08 Qualified Domestic Relations Order
Payments from this plan will be made to an alternate payee
under a qualified domestic relations order, under the terms of
Section 414(p) of the Code, as applied by the administrator. If
so provided by the qualified domestic relations order,
distribution of the total amount deferred will be made to the
alternate payee within a reasonable period of time following
the date it is made available under the qualified domestic
relations order.
5.09 Service credit
A participant may direct the transfer of the account balance to
a governmental defined benefit plan for the purchase of
permissive service credits in accordance with Section
457(e)(17) of the Code.
5.10 Distribution of Excess Deferral
If a participant defers more than the maximum allowed under
Section 4.02 for a plan year, then as soon as administratively
practicable after the administrator determines that the limits
have been exceeded, the administrator shall distribute to the
participant the excess deferrals, plus income or less loss
attributable to such excess deferrals. The excess deferrals are
subject to income tax in the year of deferral. Earnings on the
excess deferrals are taxable for the year of distribution. If an
excess deferral is not corrected by distribution, the plan is an
ineligible plan under which benefits are taxable in accordance
with ineligible plan rules.
VI. Form of distributions
6.01 Distributions of amounts under Article V of the plan shall
conform to the requirements of this Article VI.
(a) Each participant may elect the settlement option and
payment period for payments to be made with respect to
each event described in Article V from among any
alternatives offered by the administrator. The settlement
options and payment periods available under the plan
shall be:
(1) a lump sum distribution;
(2) annual or more frequent (but not more frequently
than monthly) installments as nearly equal as
practicable over a definite period;
(3) a life annuity provided by an insurance company.
(b) If the total amount deferred is less than $5,000, or if a
participant has elected a settlement option for himself or
his beneficiary that requires installment or annuity
payments of less than $50 per month, determined as of
the day benefit payments are to commence, then
notwithstanding any election made pursuant to
subsection (a), the total amount deferred shall be paid to
the participant or his beneficiary in a single payment on
the date payments are to commence.
(c) Subject to the provisions of this Article VI, if a
participant does not effectively elect a settlement option
and payment period for benefits payable under Section
5.01 or 5.02, then such benefits shall be paid to the
participant or beneficiary in a lump sum.
6.02 Direct rollovers
A distributee may elect, at the time and in the manner
prescribed by the administrator, to have any portion of an
eligible rollover distribution paid directly to an eligible
retirement plan specified by the distributee in a direct rollover.
An eligible rollover distribution is 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 substantially equal
periodic payments (not less frequently than annually) made for
the life (or life expectancy) of the.distributee or the joint lives/
joint life expectancies of the 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; and the portion
of any distribution that is not includible in gross income
(determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities); and any
distribution made pursuant to an unforeseeable emergency
under Section 5.06.
VII. Leave of absence
Lincoln Alliance Program 457(b) Governmental Deferred Compensation Plan
7.01 If a participant is on an approved leave of absence from
the employer with compensation, or on approved leave of
absence without compensation for a period of not more than
three months (which period may be extended by the
employer), his participation in the plan may continue.
7.02 If a participant is on an approved leave of absence
without compensation and such leave of absence continues
beyond the period specified in Section 7.0 1, said participant
shall incur a severance from employment with the employer,
provided, however, that prior to the expiration of the period
specified in Section 7.0 1, said participant may request the
administrator to permit him to leave the funds previously
deferred in the plan. Upon termination of leave without pay
and return to active status, the participant may execute a new
participation agreement to be effective when permitted by the
plan.
VIII. Amendment or termination of plan
8.01 The employer may at any time terminate this plan. Upon
such termination, each participant in the plan will be deemed
to have revoked his agreement to defer future compensation as
provided in Section 4.07 as of the date of such termination.
Each participant's full compensation on a non - deferred basis
will thereupon be restored.
8.02 The employer may also amend the provisions of this plan
(including those provisions with respect to its duties and
responsibilities hereunder) at any time; provided, however,
that no amendment shall:
(a) Affect the amount of benefits which at the time of such
amendment shall have accrued for participants or
beneficiaries, to the extent of any compensation deferred
before the time of the amendment and income thereon
accrued to the date of the amendment, calculated in
accordance with Section 4.08; or
(b) Authorize or permit at any time any part of the amounts of
compensation deferred under the plan, the property and
rights purchased with such amounts, or the income
attributable to such amounts, property, or rights to be used
in any manner for, or diverted to, purposes other than for
the exclusive benefit ofparticipants and their
beneficiaries.
IX. Relationship to other plans
9.01 It is intended that, pursuant to Section 457 of the Code,
the amounts deferred under this plan will not be considered
current compensation for purposes of federal income taxation.
Such amounts will, however, be included as compensation to
the extent required under the Federal Insurance Contributions
Act (FICA).
X. No Transfer in lieu of benefits
10.01 Upon the occurrence of any event requiring the payment
of amounts under this plan, there shall be no transfer in kind
or assignment of any asset which the plan has acquired.
XI. Non - assignability
11.01 Except as provided in Section 5.08, it is agreed that
neither the participant, nor his beneficiary, nor any other
designator shall have any right to commute, sell, assign,
transfer, or otherwise convey the right to receive any
payments hereunder, which payments and right thereto are
expressly declared to be non - assignable and non - transferable;
nor shall any unpaid amounts be subject to attachment,
garnishment or execution, or be transferable by operation of
law in event of bankruptcy, or insolvency; except to the extent
otherwise required by law.
XII. Assets
12.01 The assets and income of this plan shall be held for the
exclusive benefit of the participants and beneficiaries. The
employer shall either adopt a trust under which all amounts of
compensation deferred under the plan, all property (including
annuity contracts) and rights purchased with such amounts,
and all income attributable to such amounts, property or rights,
will be held; or may deposit all such amounts deferred under
the plan into an annuity contract. In no event shall the
amounts so held or applied be subject to the rights or claims of
any creditor of the employer. Such assets may be used to pay
the reasonable expenses of the plan. Any assets remaining in
the trust or annuity after all plan obligations have been
fulfilled upon termination of the plan shall be returned to the
employer. The account balances, without earnings, of any
participant who cannot be located upon the termination of the
plan shall be returned to the employer and made payable to the
lost participant upon a claim being made by the participant.
XIII. Participation by administrative members
13.01 Any person designated as administrator who is
otherwise eligible may participate in the plan under the same
terms and conditions as apply to other participants but such
participant/administrator shall not have the power to
participate in any administrative action taken with respect to
his participation.
XIV. Employer participation
Lincoln Alliance Program 457(b) Governmental Deferred Compensation Plan
14.01 Notwithstanding any other provisions of this plan, the
employer may make non - elective contributions to this plan.
Non - elective contributions are contributions made by the
employer for the participant with respect to which the
participant does not have the choice to receive the
contribution in cash or property. These non - elective
contributions may be made to the plan, provided:
(a) Non - elective employer contributions are treated as being
made under an agreement entered into before the first day
of the calendar month, and
(b) Such non - elective employer contribution, when added to
all other compensation deferred under the plan, does not
exceed the maximum deferral permitted by Article IV.
XV. Disclaimer with respect to investments
15.01 The employer, the governing board and the
administrator, make no endorsement, guarantee or any other
representation and shall not be liable to the plan or to any
participant, beneficiary, or any other person with respect to
the financial soundness, investment performance, fitness, or
suitability (for meeting a participant's objectives, future
obligations under the plan, or any other purpose) of any
investment vehicle in which amounts deferred under the plan
are invested.
XVI. Plan -to -plan transfers
16.01 Post severance transfers:
A transfer to and from the plan and another eligible
governmental deferred compensation plan will be permitted
under the following circumstances:
(a) The other plan also provides for such transfers,
(b) The participant or beneficiary whose amounts deferred are
being transferred will have an amount deferred
immediately after the transfer at least equal to the amount
deferred with respect to that participant or beneficiary
immediately before the transfer, and
(c) In the case of a transfer for a participant, the participant
has had a severance from employment with the transferring
employer and is performing services for the entity
maintaining the receiving plan.
16.02 Transfers of all plan assets
Transfer of all assets of the plan to and from another eligible
governmental deferred compensation plan will be permitted
under the following circumstances:
(a) The transfer is between the plan and another plan in the
same State,
(b) All the assets of the transferring plan are transferred,
(c) The other eligible governmental deferred compensation
plan provides for the transfer or receipt, as applicable,
(d) The participant or beneficiary whose amounts deferred are
being transferred will have an amount deferred
immediately after the transfer at least equal to the amount
deferred with respect to that participant or beneficiary
immediately before the transfer, and
(e) The participants or beneficiaries whose deferred amounts
are being transferred are not eligible for additional annual
deferrals in the receiving plan unless they are performing
services for the entity maintaining the receiving plan,
including the employer if the plan is the receiving plan.
16.03 Transfer among plans of the employer
Transfer to and from the plan and another eligible
governmental deferred compensation plan of the employer
will be permitted under the following circumstances:
(a) For this purpose the employer is not treated as the same
employer if the participant's compensation is paid by
another entity,
(b) The other eligible governmental deferred compensation
plan provides for the transfer or receipt, as applicable,
(c) The participant or beneficiary whose amounts deferred are
being transferred will have an amount deferred
immediately after the transfer at least equal to the amount
deferred with respect to that participant or beneficiary
immediately before the transfer, and
(d) The participant or beneficiary whose deferred amounts are
being transferred is not eligible for additional annual
deferrals in the receiving plan unless he is performing
services for the entity maintaining the receiving plan,
including the employer if the plan is the receiving plan.
16.04 Administrative rules
The administrator shall prescribe such rules consistent with
the provisions of this Article concerning plan -to -plan transfers
as in its sole judgment it deems desirable for the orderly
administration of the plan, including, but not limited to, the
following:
(a) The administrator may require in its sole discretion that
some or all of such interest be transferred in cash or its
equivalent. Such amount shall be held, accounted for,
administered and otherwise treated in the same manner as
compensation deferred by the participant under the plan
including, without limitation, for purposes of Section 4.01,
Lincoln Alliance Program 457(b) Governmental Deferred Compensation Plan
except that only the amount, if any, transferred to this plan
which was deferred under the transferor plan in the taxable
year when transfer occurs shall be treated as compensation
deferred under the plan in such year for purposes of
Section 4.01, 4.02 and 4.03, and
(b) Such amount shall remain subject to, and shall be
administered in accordance with, any distribution
restrictions applicable under this receiving plan with
respect to such amount.
16.05 Application for transfer
If the conditions in Article XVI are met and the participant
wishes to transfer his account from the plan or an account of
another eligible deferred compensation governmental plan to
the plan, he shall complete any application form and/or other
documents as may be required by the administrator.
XVII. Protection under the Uniformed Services
Employment and Reemployment Rights Act of 1994
17.01 Notwithstanding any provision of this plan to the
contrary, contributions, payment of benefits, accrual of
benefits and service credit with respect to qualified military
service will be provided in accordance with Code Section
414(u).
XVIII. Interpretation
18.01 This plan shall be construed under the laws of the state
of California.
18.02 This plan is intended to be a deferred compensation plan
within the meaning of Section 457(b) of the Code for
employers defined in Section 457(e)(1)(A) of the Code, and
shall be interpreted so as to be consistent with such section
and all Regulations promulgated thereunder.
18.03 Word Usage
Words used herein in the singular shall include the plural and
the plural the singular where applicable, and one gender shall
include the other genders where appropriate.
18.04 Headings
The headings of Articles, Sections or other Subdivisions
hereof are included solely for convenience of reference, and if
there is any conflict between such heading and the text of the
plan, the text shall control.
XIX. Participant Loans
19.01 Loans
Availability of loans to participants:
(a) The employer elects to make loans available to participants
in this plan. A participant may apply for a loan from the
plan subject to the limitations as set forth in the plan's
written loan policy.
(b) The employer shall establish written guidelines governing
the granting and administration of loans. Loans are made
available to all eligible participants.
Lincoln Alliance Program 457(b) Governmental Deferred Compensation Plan
Notification of Adoption
This document is not an IRS approved prototype and Lincoln
Alliance Program makes no guarantees or warranties,
expressed or implied, regarding the tax effects of this
proposedlanguage.
By providing the information requested below, the employer
understands that Lincoln Alliance Program will advise the
adopting employer of any amendments made to this Lincoln
Alliance Program's sample document.
Town of Danville
510 La Gonda Way
Danville, CA 94526 -1742
TOD -001
EIN 94- 2834842
It is understood by the employer that:
(a) The employer must notify Lincoln Alliance Program
in writing of any changes in the information below,
and
(b) The employer must notify Lincoln Alliance Program
of any significant changes in the operation of its plan
(such as the adoption of another plan document or
termination of the plan), and
(c) This notification is merely a means by which Lincoln
Alliance Program can assist employers in keeping
their Lincoln Alliance Program documents updated
and does not guarantee that the employer's plan is in
compliance with IRS rules and Regulations.
The plan's original effective date is January 1, 2004. The plan has been restated/amended July 1, 2012.
Adopted this day of , in the year
By _
Title
Attest
By _
Title
Lincoln Alliance Program 457(b) Governmental Deferred Compensation Plan
This plan is intended to satisfy Section 457 of the Internal Revenue Code of 1986, which may be used in preparing deferred
compensation plans. In general, under a Section 457 plan, a participant may defer amounts of compensation (and income earned on
those deferrals) and avoid federal income taxation until those amounts are paid or otherwise made available to the participant.
You should review and, where appropriate, modify the plan in light of your particular needs and any applicable state or local laws. In
adopting a plan, you should also consider its coordination with the investment media to be used and with any retirement or other
benefit programs you maintain, as well as federal income tax reporting, withholding FICA, FUTA, and comparable state and local
obligations.
The plan is not intended to provide you with legal advice, nor should it be implemented without regard to your particular needs or any
applicable laws of your state. No state or federal government has passed on the legal sufficiency (including the conformity with
Section 457) of the plan document. The Lincoln National Life Insurance Company, its affiliates, and Lincoln Alliance Program are
not parties to any plan you adopt and do not assume any liability to any person or entity with respect to the adequacy of this plan
document for any purpose, or with respect to any tax or legal ramifications arising from its use. You should consult with your legal
counsel prior to adopting any deferred compensation plan.
Lincoln Alliance Program 457(b) Govemmental Deferred Compensation Plan
THE PENSION PROTECTION ACT OF 2006,
THE HEROES EARNINGS ASSISTANCE AND RELIEF TAX ACT OF 2008
THE PROVISION IN THE EMERGENCY ECONOMIC STABILIZATION ACT OF 2008 KNOWN
AS THE HEARTLAND DISASTER TAX RELIEF ACT OF 2008 AND
THE WORKER, RETIREE AND EMPLOYER RECOVERY ACT OF 2008
Plan Name: Town of Danville 457(b) Deferred Compensation Plan
EIN: 94- 2834842 REMITTER /PLAN: TOD -001
WHEREAS, the employer desires to amend the plan as provided herein in accordance with Section 8.02 of the plan
document to reflect the applicable provisions of the Pension Protection Act of 2006 (PPA), the Heroes Earnings
Assistance and Relief Tax Act of 2008 (HEART), the provision of the Emergency Economic Stabilization Act of 2008
(EESA) known as the Heartland Disaster Tax Relief Act of 2008, and the Worker, Retiree and Employer Recovery
Act of 2008 (WRERA). Except as otherwise provided, this amendment (amendment) is intended to provide good faith
compliance with the requirements of those provisions, and shall supersede any inconsistent provisions of the plan.
All terms in this amendment in italics are defined terms and will have the same meaning as provided in the plan
document unless provided otherwise herein;
WHEREAS, the employer has authorized its officers, and any one of them, to execute this amendment and to
complete such other matters, if any, such officer or officers believe necessary to effectuate this amendment,
NOW THEREFORE, the Lincoln Financial Group 457(b) Governmental Deferred Compensation Plan (hereinafter
together or separately the "plan document') shall be amended as follows, and is adopted by Town of Danville
(employer) as of the date provided next to the employer's signature hereto.
Lincoln Financial Group 457(b) Governmental Deferred Compensation Plan Document is hereby amended as
follows:
Section 2.04 entitled "Compensation" is hereby amended by the addition of the following paragraph to read
as follows:
"Effective for plan years beginning after December 31, 2008, compensation includes differential pay
received by employees who are called to active duty in the uniformed services. Differential pay is
compensation paid by the employer equal to the difference between the employee's compensation paid by
the employer and the employee's military compensation. This paragraph shall only apply if all employees
are receiving differential pay on a reasonably equivalent basis, are eligible to participate in the employer's
plan, and may make contributions based on the payments on reasonably equivalent terms:"
2. Effective for plan years beginning after December 31, 2006, Section 5.01 entitled "Commencement of Benefit" is
amended by the addition of the following paragraph to read as follows:
"Effective for distributions made after December 31, 2006, a special tax notice must be given to participants
requesting a distribution no less than 30 days and no more than 180 days before the date of the distribution."
3. Section 5.05 entitled "Required Minimum Distributions" is amended by the addition of the following paragraph
to read as follows:
"In accordance with the provisions of the Worker, Retiree and Employer Recovery Act of 2008, the plan hereby
suspends the required minimum distributions for plan participants or their beneficiaries for the 2009 calendar
year. However, on an individual basis, participants or beneficiaries shall have the right to continue their required
minimum distribution payments upon notice to the plan administrator. Any required minimum distribution
received for the 2009 calendar year may be rolled over to an individual retirement plan or annuity or other eligible
retirement plan within the time period permitted by law. The plan is not required to apply the direct rollover rules,
nor to provide the written notice and explanation of the direct rollover rights, nor apply the mandatory 20%
withholding which applies to an eligible rollover distribution. An indirect rollover contribution of the distribution
amount still may be made pursuant to the sixty (60) day rollover rule.
2009 457(b) Gov't PPA_HEART_EESA WRERA (32723) Page 10
If a participant has died prior to the distribution of his benefit beginning in accordance with the required minimum
distribution rules, then distribution of the participant's account must be completed within five (5) years after the
death of the participant. Special rules apply for the spouse of a deceased participant and an election may be
made to distribute the benefits over the lifetime or life expectancy of the designated beneficiary. In applying the
five (5) year rule, the relief allows the 2009 calendar year to be ignored. For beneficiaries of deceased
participants, 2009 will not be counted as part of the five (5) year period during which they must take a
distribution."
4. Section 5.06 entitled "Unforeseeable Emergency" is amended by the addition of the following paragraphs to
read as follows:
"(a) Notwithstanding any other provision herein, in the event of an unforeseeable emergency as
defined in Section 2.15, a participant may make a request to the plan administrator for payment of
all or a portion of the total amount deferred to the date of payment. If the application for payment is
approved by the plan administrator, payment will be made within 60 days following such approval.
Payment shall be limited strictly to that amount reasonably necessary to meet the situation
constituting the unforeseeable emergency, including any amounts necessary to pay any federal,
state, or local income taxes or penalties reasonably anticipated to result from such distribution..
Furthermore, payments may not be made to the extent that a hardship is or may be relieved
through reimbursement or compensation by insurance or otherwise, by liquidation of the
participant's assets (to the extent such liquidation does not itself cause severe financial hardship),
or by cessation of deferrals under the plan. Any remaining amounts shall be paid in accordance
with Articles V and VI of the plan.
(b) Notwithstanding the foregoing provisions of this Section 5.06, unforeseeable emergency
withdrawals shall be permitted to participants that meet the definition of a 'Qualified Disaster
Recovery Assistance Distribution.' A Qualified Disaster Recovery Assistance Distribution is a
distribution made from the plan on or after the Applicable Disaster Date and before January 1, 2010
to a Qualified Storm Damage Individual. Such distribution cannot exceed $100,000 per individual
and is exempt from the 10% federal income tax on early distributions and the mandatory 20%
federal tax withholding. Any distribution made will be included in the participant's gross income
ratably over a three (3) taxable year period, beginning with the year in which the distribution
occurred, unless the participant elects otherwise. A distribution made during the applicable time
period may qualify as a Qualified Disaster Recovery Assistance Distribution even if it is not made
as a result of the disaster, and different types of distributions (i.e., periodic payments, plan loan
offsets, hardship withdrawals, in- service withdrawals or required minimum distributions) may be
considered Qualified Disaster Recovery Assistance Distributions.
(1) The Applicable Disaster Date means the date on which severe storms, tornadoes and flooding occurred
in the designated counties in the Midwestern areas as declared by the President of the United States of
America on or after May 20, 2008 and before August 1, 2008 which entitled individuals to public assistance
from the federal government under the Emergency Economic Stabilization Act of 2008 (EESA) and its
provision entitled the Heartland Disaster Tax Relief Act of 2008 with respect to damages caused by such
disasters.
(2) A Qualified Storm Damage Individual is a participant whose principal residence on the Applicable
Disaster Date was located in the Midwestern Disaster Area and who incurred an economic loss as the result
of severe storms, flooding or tornadoes. A participant's principal residence is defined as the main home
where such participant lives most of the time. A temporary absence due to special circumstances such as
illness, education, business, military services, evacuation or vacation, will not change the definition of a
participant's principal residence. A complete list of affected counties in the Midwestern Disaster Area can be
found in IRS Publication 4492 -B.
(3) If permitted, the distribution may be repaid within .three (3) years to an IRA, a qualified plan, a
governmental Code Section 457(b) plan or a Code Section 403(b) plan in which the individual is a
participant provided such plan accepts a rollover contribution. Repayment does not have to be made to the
same plan from which the distribution was made. Participants who took a hardship distribution from a
457(b) plan to purchase a home in the Midwestern Disaster Area that was made six (6) months before the
Applicable Disaster Date and where the home was not purchased due to the disaster, may have re-
contributed such distribution to the plan and received favorable treatment provided such amounts were re-
contributed before March 4, 2009."
2009 457(b) Gov't PPA_HEART_EESA WRERA (32723) Page 11
5. Section 5.09 entitled "Service Credit' is deleted and replaced in its entirety as follows:
"A participant may direct the transfer of the account balance to a governmental defined benefit plan for the
purchase of permissive service credits in accordance with Section 457(e)(17) of the Code. Amounts from a
457(b) governmental plan may be transferred to a state or local defined benefit plan for the specific purpose of
purchasing service credits. It is the responsibility of the state or local defined benefit plan to determine whether it
will limit the purchase of service credit to "qualified service credit" as described in 415(n)(3)(A) or expand to
include "non- qualified service credit" as described in 415(n)(3)(C)."
6. Article V is amended to add a new Section 5.11 entitled "Payment for Certain Insurance" to read as follows:
"For distributions after December 31, 2006, a governmental plan may permit eligible retired public safety officers
to make an election to have direct payments for premiums made from an eligible retirement plan to an insurer for
qualified health insurance.premiums. Up to $3,000 of a distribution that meets the criteria is not included in the
retiree's gross income each tax year.
An eligible retired public safety officer is described as a retired or disabled public safety officer, including law
enforcement officers, firefighters, or rescue squad or ambulance crew.
A qualified health insurance premium means premiums for coverage for an eligible retired public safety officer, a
spouse and dependents by an accident or health insurance plan or qualified long -term care insurance contract."
Article V is amended to add a new Section 5.12 entitled "Periods of Qualified Active Military Service Treated as
Severance from Employment" to read as follows:
"Employees performing military service while on active duty for more than thirty (30) days will be considered to
have a severance from employment during any period the employee is performing service in the uniformed
services described in Code Section 3401(h)(2)(A)."
8. Section 6.02 entitled "Direct rollovers" is amended by the addition of the following paragraphs to read as
follows:
"Effective for distributions made after December 31, 2006, in the case of an eligible rollover distribution to a non -
spouse beneficiary, an eligible retirement plan is an individual retirement or individual retirement annuity as
defined in Code Sections 408(a) and 408(b). A direct rollover of a distribution by a non - spouse beneficiary is a
rollover of an eligible rollover distribution for purposes of Code Section 402(c) only. If an amount is distributed
from a plan and is received by a non- spouse beneficiary, the distribution is not eligible for rollover treatment.
For distributions made after December 31, 2007, an eligible retirement plan shall include a Roth IRA as
described in Code Section 408A; however, for taxable years beginning prior to January 1, 2010, the income
restrictions that apply to a rollover from a traditional IRA into a Roth IRA will continue to apply."
9. Article XVII entitled "Protection under the Uniformed Services Employment and Reemployment Rights Act of
1994" is deleted and replaced in its entirety as follows:
"Article XVII Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA)
17.01 Notwithstanding any provision of this plan to the contrary, contributions, benefits and service credit
with respect to qualified military service will be provided in accordance with Section 414(u) of the Code.
Also, if the written loan policy described in Section 19.01 so provides, loan repayments to be made by such
individuals may be suspended under this plan by the plan administrator as permitted under Section
414(u)(4) of the Code.
17.02 For benefit accrual purposes, the employer may elect to treat an employee who dies or becomes
disabled (as defined under the terms of the plan) while performing qualified military service with respect to
the employer maintaining the plan as an employee who had resumed employment in accordance with the
individual's reemployment rights under USERRA on the day preceding death or disability (as the case may
be) and terminated employment on the actual date of death or disability. In the case of any such treatment,
and subject to the following paragraphs, any full or partial compliance by such plan with respect to the
benefit accrual requirements with respect to such employee shall be treated as if such compliance were
required under USERRA.
2009 457(b) Gov't PPA_HEART_EESA WRERA (32723) Page 12
(a) With respect to the employer maintaining the retirement plan, all employees performing
qualified military service who died or become disabled as a result of performing qualified military
service, prior to reemployment by the employer, are to be credited with service and benefits on
reasonably equivalent terms.
(b) The amount of deferred compensation of an employee treated as reemployed on the day
before death or Disability shall be determined on the basis of the individual's average actual
employee contributions or employee elective deferrals for the lesser of (1) the twelve (12) month
period of Service with the employer immediately prior to qualified military service, or (2) if Service
with the employer is less than such twelve (12) month period, the actual length of continuous
Service with the Employer."
17.03 Employees performing military service while on active duty for more than thirty (30) days will be
considered to have a severance from employment during any period the employee is performing service in
the uniformed services described in Code Section 3401(h)(2)(A). If an employee who is a plan participant
elects to receive a distribution of elective deferrals under this provision, the participant may not make an
employee elective deferral or employee contribution during the six (6) month period beginning on the date of
the distribution.
17.04 An employee who receives a qualified reservist distribution may repay to an individual retirement plan
(in one or more contributions) the amount of the distribution at any time during the two (2) year period
beginning after the end of the active duty period. The dollar limitations that would otherwise apply to IRA
contributions will not apply to repayment contributions during such two (2) year period and no deduction is
allowed for any contribution made under this provision."
10. Article XIX entitled "Participant Loans" is amended by adding the following new subparagraph (c) to Section
19.01 to read as follows:
"(c) A Qualified Storm Damage Individual [as defined at subparagraph 5.06(b)(2) herein] may take a loan from
the plan that exceeds the maximum loan amount as referenced above at section 19.01(a). The maximum loan
amount available to such individual cannot exceed the lesser of $100,000 or 100% of the participant's vested
account balance when taken or added to any outstanding loan balance during the applicable period. The
applicable period is defined as the period beginning on October 3, 2008 and ending on December 31, 2009.
Additionally, any Qualified Storm Damage Individual who had outstanding loan repayments due on or after the
Applicable Disaster Date [as defined in subparagraph 5.06(b)(2)] and before January 1, 2010, may suspend
repayments for one (1) year upon notifying the plan administrator. Any such suspension will not cause the loan
to become a deemed distribution."
NOW THEREFORE, this amendment is hereby adopted as of date provided below.
Town of Danville
Employer
Date:
Signature of Officer
Typed or Printed Name & Title of Officer
2009 457(b) Gov't PPA_HEART_EESA WRERA (32723) Page 13
ROTH "GOOD FAITH" AMENDMENT PER
THE SMALL BUSINESS JOBS ACT OF 2010
PLAN NAME: Town of Danville 457(b) Deferred Compensation Plan
EIN:94- 2834842 REMITTER/PLAN: TOD -001
WHEREAS, the employer desires to amend the plan as provided herein in accordance with Section 8.02 of the plan
document to reflect the Roth provisions of the Small Business Jobs Act of 2010. Except as otherwise provided, this
amendment (amendment) is intended to provide good faith compliance with the requirements of those provisions,
and shall supersede any inconsistent provisions of the plan. All terms in this amendment in italics are defined terms
and will have the same meaning as provided in the plan document unless provided otherwise herein. The plan
administrator will administer roth deferrals in accordance with applicable regulations or other binding authority not
reflected in this amendment. Any applicable regulations or other binding authority shall supersede any contrary
provisions of this amendment.
WHEREAS, the employer has authorized its officers, and any one of them, to execute this amendment and to
complete such other matters, if any, such officer or officers believe necessary to effectuate this amendment;
NOW THEREFORE, the Lincoln Financial Group 457(b) Governmental Deferred Compensation Plan (plan
document) shall be amended as follows, and is adopted by Town of Danville (employer) as of the date provided next
to the employer's signature hereto:
1. The plan document is hereby amended to add Article XX, entitled "Roth Provisions ".
2. Article XX is amended to add a new Section 20.0 1, entitled "Effective Date" to read as follows:
"20.01 Effective Date
The effective date for the "Roth Provisions" is January 1, 2012.
As of the effective date, the plan will accept Roth deferrals made on behalf of participants. A participant's roth
deferrals will be allocated to a separate Individual Account defined as the roth deferral account maintained for
such roth deferral."
3. Article XX is amended to add a new Section 20.02, entitled "Roth Deferral" to read as follows:
"20.02 Roth Deferral
A roth deferral is a deferral that is:
1. Designated irrevocably by the participant at the time of the salary reduction election as a roth deferral that
is being made in lieu of all or a portion of the pre -tax deferrals the participant is otherwise eligible to make
under the plan, and
2. Treated by the employer as includible in the participant's income at the time the participant would have
received that amount in cash if the participant had not made a participation agreement.
3. Unless specifically stated otherwise, roth deferrals will be treated as deferral contributions for all purposes
under the plan.
Furthermore, the plan will maintain a record of the amount of roth deferrals in each participant's roth deferral
account. Contributions and withdrawals of roth deferrals will be credited and debited to the roth deferral
account maintained for each participant. No contributions other than roth deferrals and properly attributable
earnings will be credited to each participant's roth deferral account. Gains, losses, and other credits or charges
must be separately allocated on a reasonable and consistent basis to each participant's roth deferral account and
the participant's other accounts under the plan."
4. Article XX is amended to add a new Section 20.03, entitled "Direct Roth Rollovers from the Plan" to read as
follows:
"20.03 Notwithstanding the above, a direct rollover of a distribution from a roth deferral account under this
plan will only be made to another roth deferral account under an applicable retirement plan described in §
402A(e)(1) or to a Roth IRA described in § 408A, and only to the extent the rollover is permitted under the
rules of § 402(c).
Furthermore, the plan will not provide for a direct rollover (including an automatic rollover) for distributions
457(b) Gov't Roth Page 1
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from a participant's roth deferral account if the amount of the distributions that are eligible rollover
distributions are reasonably expected to total less than $200 during a plan year. In addition, any distribution
from a participant's roth deferral account is not taken into account in determining whether distributions from a
participant's other individual accounts are reasonably expected to total less than $200 during a plan year.
However, eligible rollover distributions from a participant's roth deferral account are taken into account in
determining whether the total amount of the participant's individual account balances under the plan exceeds
$1,000 for purposes of mandatory distributions from the plan."
5. Section 4. 10, entitled "Rollover" is amended by adding the following paragraphs:
"Notwithstanding the above, at the discretion of the administrator, a direct rollover of Roth Contribution is
permitted only if it is a direct rollover from another Roth elective deferral account under an applicable retirement
plan described in code section 402A(e)(1) and only to the extent the Roth rollover contribution is permitted under
the rules of code section 402(c).
Furthermore, an indirect or participant rollover of the taxable portion of a distribution from a Roth elective
deferral account to the plan is not permitted."
6. Section 5.06, entitled "Unforeseeable Emergency" is amended by adding the following paragraph:
"Notwithstanding the above, the plan will not permit an unforeseeable emergency distribution from
roth deferral account."
7. Section 19.01, entitled "Loans" is amended by adding the following paragraphs:
"Notwithstanding the above, the plan will not permit a participant loan from roth deferral account."
8. Section 5. 10, entitled "Distribution of Excess Deferral" is amended by adding the following paragraph:
"Notwithstanding the above, if the excess deferral for the plan year is composed of pre -tax deferrals and roth
deferrals, the affected participant may designated before March 1" which individual account will be used to
distribute the excess deferral. In the absence of the participant's election, the plan shall distribute pre -tax
deferrals first."
NOW THEREFORE, this amendment is hereby adopted as of date provided below.
Town of Danvill
Employer
Date:
Signature of Officer
Typed or Printed Name & Title of Officer
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