Loading...
077.97 RESOLUTION AMENDING TOWN OF QUEENSBURY DEFERRED COMPENSATION PLAN FOR TOWN EMPLOYEES RESOLUTION NO.: 77.97 INTRODUCED BY: Mrs. Carol Pulver WHO MOVED ITS ADOPTION SECONDED BY: Mr. Theodore Turner 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 Rules and Regulations of the New York State Deferred Compensation Board (the "Rules and Regulations"), has promulgated the Model 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 Rules and Regulations, has adopted and currently administers the Model Plan in a form known as the Deferred Compensation Plan for Employees of the Town of Queensbury, and WHEREAS, Section 457 of the Internal Revenue Code was recently amended by the Small Business Job Protection Act of 1996 to allow eligible deferred compensation plans such as the Model Plan to provide additional deferral opportunities for certain veterans of the military service pursuant to the provisions of the Uniformed Services Employment and Reemployment Rights Act of 1994 and, effective for plan years beginning after December 31, 1996, to provide (i) for maximum deferral amounts to increase with cost-of-living adjustments, (ii) for increased flexibility in distribution elections and (iii) for in-service withdrawals of small inactive account balances, and WHEREAS, the Board has recently amended and restated the Model Plan, effective January 1, 1997, by adopting the amendments set forth below, and has offered such amendments for adoption by each Model Plan currently sponsored by a local employer in accordance with the Rules, 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 such amendments to the Model Plan as are indicated below, NOW, THEREFORE, BE IT RESOLVED, that the Town of Queensbury hereby amends the Deferred Compensation Plan for Employees of the Town of Queensbury by adopting the amendments to the Model Plan effective January 1, 1997, which amendments read as follows: In the case of a Participant who continues to work beyond age 70 and 1/2 and who, upon the attainment of age 70 and 1/2, had not made the catchup election provided for under Section 3.2(b)(i), the Normal Retirement Age shall be the age designated by the Participant, which shall not be later than the age at which the Participant Separates from Service with the Employer. Notwithstanding anything in the Plan to the contrary, the Participant's designation of a Normal Retirement Age under Section 3.2(b)(i) shall not control the date that payment of his or her benefits shall commence pursuant to Section 7. 1.21 "Separation from Service" or "Separates from Service" means a separation from the service of the Employer within the meaning of the Treasury Regulations promulgated under Section 457 of the Code including, but not limited to, Treasury Regulation Section 1.457-2(h)(2) and USERRA. 1.26 "USERRA" means the provisions of the Uniformed Services Employment and Reemployments Rights Act of 1994 contained in chapter 43 of title 38 of the United States Code. (a) Subject to Section 3.2(c), the amount that may be deferred by a Participant for any Year shall be a minimum of $260 and shall not exceed the lesser of: (i) $7,500, or such other greater amount as may be permitted pursuant to Section 457(e)(15) of the Code, or (ii) 33 1/3% of the Participant's Compensation for the Year. (b) Notwithstanding the limitation provided for in Section 3.2(a): (i) a Participant may file an election in the manner provided by the Board to have the catch-up limitation set forth in this Section 3.2(b)(i) apply to the determination of the maximum amount that may be deferred during one or more of the last 3 Years ending before attainment of the Participant's Normal Retirement Age. Subject to Section 3.2(c), if the catch-up limitation is elected, the maximum amount that may be deferred for each of the Years covered by the election shall not exceed the lesser of: (A) $15,000, or (B) the sum of the limitations provided for in Section 3.2(a) for all Years the Participant was eligible to participate in the Plan, minus the aggregate amount actually deferred for such Years. A Participant may not elect to have this Section 3.2(b)(i) apply more than once, whether or not the Participant rejoins the Plan after retirement; and (ii) any Participant who is entitled to reemployment rights pursuant to USERRA and who is so reemployed in accordance with the provisions of such law may elect to make such additional deferrals as are permitted by USERRA. (c) The limitations os Sections 3.2(a) and 3.2(b)(i) shall be reduced by any amount excluded from the Participant's gross income for the applicable Year under Sections 402(a)(8), 402(h)(1)(B), 403(b), 457(a) and 501(c)(18) of the Code, under any plan maintained by the Employer or any other employer and as provided by any other applicable provisions of law. SECTION 6. WITHDRAWALS FOR UNFORESEEABLE EMERGENCIES; WITHDRAWALS OF SMALL ACCOUNTS 6.3 A Participant with respect to whom the total amount payable under the Plan does not exceed $3,500 may elect at any time to receive a lump sum distribution of his or her Account at least 60 days following such election, provided that: (i) there has been no Amount Deferred by such Participant during the two year period ending on the date of distribution, and (ii) there has been no prior distribution elected by such Participant pursuant to this Section 6.3. 7.4 (a) In the case of the Participant's death or Separation from Service with the Employer, a distribution election under Section 7.3 must be made by the payee prior to the 20th day following the date of such death or Separation from Service and prior to the date that payments commence pursuant to the provisions of this Section 7. Such election shall specify the form of payment described in Section 7.3 elected by the Participant and the date on which payments shall commence. Such date must be after the end of the period specified above for making such election; provided, however, that, consistent with the requirements of Section 401(a)(9) of the Code and effective January 1, 1989, such payments to a Participant shall commence no later than (i) April 1st of the Year following the Year (i) in which the Participant attains age 70 and 1/2,or (ii) in which the Participant retires. election made pursuant to this Section 7.4(a) may not be changed or revoked; provided, however, that a Participant may elect to postpone the commencement date specified in the election made pursuant to this Section 7.4(a) to a later date if (i) such postponement election is made prior to the original commencement date specified in the election made pursuant to this Section 7.4(a), and (ii) no other postponement election has been made pursuant to this sentence; provided further that a Participant may change the form of payment elected at any time that is at least 60 days prior to the date on which payments will commence. If an election under this Section 7.4(a) is not timely made, then upon the Participant's death or Separation from Service, payment shall be made in one lump cash sum within 30 days after the expiration of the period in which to make an election with respect to such death or Separation from Service; provided however, that in no case may any such payment under this Section 7.4(a) commence later than April 1st of the Year following the Year in which the Participant attains age 70 and 1/2 or retires, whichever is later. (b) Effective January 1, 1989, if a Participant dies before distribution of his or her interest has commenced, distribution to any Beneficiary of the Participant's entire interest under the Plan shall be made on or before the December 31st of the Year which contains the fifth anniversary of the date of such Participant's death; provided however, at the Beneficiary's irrevocable election, duly filed with the Administrative Service Agency before the applicable commencement date set forth in the following sentence, any distribution to a Beneficiary may be made over the life of the Beneficiary or over a period not extending beyond the life expectancy of the Beneficiary; and provided further that any such distribution may not be paid over a period exceeding 15 years (or the life expectancy of the Surviving Spouse if such spouse is the Beneficiary). Such distribution shall commence not later than the December 31st of the Year immediately following the Year in which the Participant died, or in the event such Beneficiary is the Participant's Surviving Spouse, on or before the December 31st of the Year in which such Participant would have attained age 70 and 1/2, if later (or, in either case, on any later date prescribed by the Treasury Regulations). If such Participant's Surviving Spouse dies after the Participant's death but before distributions to such Surviving Spouse commence, this provision shall be applied to required payment of any further benefits as if such Surviving Spouse were the Participant. IN WITNESS WHEREOF , the undersigned have executed this Resolution in Warren County, New York this 3rd day of February, 1997 and directed that it be filed as appropriate. Present: Mrs. Pulver Mrs. Monahan Mr. Turner Mr. Champagne Absent: Mrs. Goedert