131.2012 Deferred Compensation RESOLUTION TO AMEND AND RESTATE DEFERRED COMPENSATION
PLAN FOR TOWN OF QUEENSBURY EMPLOYEES
RESOLUTION NO.: 131,2012
INTRODUCED BY: Mr.Anthony Metivier
WHO MOVED ITS ADOPTION
SECONDED BY: Mr. Tim Brewer
WHEREAS, the New York State Deferred Compensation Board (the "Board'), pursuant
to Section 5 of the New York State Finance Law ("Section 5") and the Regulations of the New
York State Deferred Compensation Board (the "Regulations"), has promulgated the Plan
Document of the Deferred Compensation Plan for Employees of the Town of Queensbury (the
"Model Plan") and offers the Model Plan for adoption by local employers, and
WHEREAS, the Town of Queensbury, pursuant to Section 5 and the Regulations, has
adopted and currently administers the Model Plan known as the Deferred Compensation Plan for
Employees of the Town of Queensbury, and
WHEREAS, effective August 26th, 2011 the Board amended the Model Plan to adopt
provisions:
• Reorganizing and updating sections to improve the overall readability and eliminate
unnecessary numerical references (annual limits) from the Model Plan document.
• Including employer elections within the plan document including: suspension of deferrals
following an unforeseeable emergency withdrawal, automatic distributions from small and
inactive accounts, loan design parameters and Roth deferrals and in-plan conversions are
permissive. The Model Plan document includes a Schedule A where the employer may
indicate the election of one or more of these provisions.
• Clarifying the first date a participant may make deferrals in compliance with Code Section
457(b) and timing requirements for any subsequent changes to deferral rates or allocations
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between pre-tax and after-tax deferrals.
• Clarifying compensation available for deferral for purposes of calculating contributions
and recognizes that employers use various methods in determining the order of deductions
taken before a deferral percentage is applied.
• Including provisions related to HEART Act of 2008 regarding treatment of differential
pay and qualifying distributions for active military service in compliance with the HEART Act,
including suspension of deferrals for six months following distribution.
• Making technical recognition of the waiver of RMDs for 2009.
• Clarifying that a beneficiary form must be received in good order to be considered valid.
• Clarifying that the Model Plan will only accept rollovers from Eligible Retirement Plans
comprised of pre-tax amounts and amounts may be rolled in by participants, beneficiaries
(other than inherited accounts) and alternate payees. Model Plans may roll account balances
out to Eligible Retirement Plans that include post-tax amounts if the receiving plan separately
accounts for them.
• Clarifying that a beneficiary of a deceased participant may roll a distribution directly to a
Roth IRA, in addition to plan participants.
• Including language allowing for future delivery of participant communications through
electronic means, where appropriate.
• Codifying that periodic and lump sum payments must be a minimum of$100 per payment,
unless the Committee selects a different minimum, and sets a maximum annual number of
partial distributions.
• Clarifying that the $50,000 loan limit includes the highest loan value in the last twelve
months from the Model Plan and other employer plans. Regarding participants who have
defaulted on a Plan loan, subsequent loans would not be allowed until defaulted loan is repaid.
Removes requirement that a participant must wait until the term of the original loan expires
before applying for a new loan, assuming the defaulted loan is repaid.
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• Providing guidance on the handling of the receipt of special proceeds such as SEC
settlements payable to former participants.
• Allowing a surviving spouse beneficiary to name a beneficiary on their account.
• Including the 5 year option for non-spousal beneficiaries to receive distributions and
makes distribution rules consistent for pre- and post-age 701/2 deaths.
• Allowing earlier distributions due to severance of employment as long as a balance of
$500 remains in the account for 45 days after a severance from employment.
• Providing that outstanding loans from another New York state 457(b) plan may be
allowed to be transferred or rolled in with a full account transfer.
• Removing the Power of Attorney Language since the acceptance of a power of attorney is
governed by State law and not required in the Model Plan document.
• Clarifying the requirement that Committee actions must be taken at a public meeting in
accordance with Article 7 of the Public Officers Law.
• Limiting indemnification to Committee Members only.
and
WHEREAS, the Board has offered for adoption the amended and restated Model Plan to
each Model Plan sponsored by a local employer in accordance with the Regulations, and
WHEREAS, upon due deliberation, the Town of Queensbury has concluded that it is
prudent and appropriate to amend the Deferred Compensation Plan for Employees of the Town of
Queensbury by adopting the amended Model Plan,
NOW, THEREFORE, BE IT
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RESOLVED, that the Queensbury Town Board hereby amends the Deferred
Compensation Plan for Employees of the Town of Queensury by adopting the amended Model
Plan effective August 26th, 2011, including the optional provisions in Schedule A, in the form
attached hereto as Exhibit A, and
BE IT FURTHER,
RESOLVED, that the Town Board authorizes and directs the Town Supervisor and/or
Town Budget Officer to sign any documentation and take all actions necessary to effectuate the
terms of this Resolution.
Duly adopted this 16th day of April, 2012, by the following vote:
AYES: Mr. Stec, Mr. Metivier, Mr. Montesi, Mr. Strough, Mr. Brewer
NOES: None
ABSENT: None
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