432.98
RESOLUTION AMENDING AND RESTATING THE
DEFERRED COMPENSATION PLAN
RESOLUTION NO.: 432.98
INTRODUCED BY: MR. DOUGLAS IRISH
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 Regulations of the New York State
Deferred Compensation Board (the 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 Board, 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, Section 457 of the Internal Revenue Code, as amended (the Code), was recently
amended by the Small Business Job Protection Act of 1996 to require that amounts held pursuant to
eligible deferred compensation plans such as the Model Plan must be held in trust for the exclusive
benefit of participants and their beneficiaries, and
WHEREAS, Section 457(e)(9) of the Code was recently amended by the Taxpayer Relief Act
of 1997 to increase the maximum elective distribution amount for small accounts from $3,500 to
$5,000, and
WHEREAS, effective September 3, 1997, the Board amended and restated the Model Plan to
require that amounts held pursuant to eligible deferred compensation plans such as the Model Plan
must be held in trust for the exclusive benefit of participants and their beneficiaries and to make other
miscellaneous modifications to the Model Plan, and
WHEREAS, effective April 1, 1998, the Board again amended and restated the Model Plan in
the form set forth in Exhibit A to increase the maximum elective distribution amount for small accounts
from $3,500 to $5,000, to permit the deferred compensation committee of a Model Plan to direct the
transfer of the account balances of Participants whose employment is being transferred to another
employer permitted to adopt an eligible deferred compensation plan pursuant to Section 457 of the
Code or, alternatively, to permit such Participants to each elect to transfer their account balances, to
the eligible deferred compensation plan of the Participants’ new employer, and to clarify that each
Participant may take into account the portion of the annual deferred compensation limitation that the
Participant did not utilize under any eligible deferred compensation plan adopted pursuant to Section
457 of the Code for the purpose of determining such Participant’s catch-up contribution limitation with
respect to the Model Plan adopted by the Participant’s employer, 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, the Town Board has determined that FMB Trust of Baltimore, Maryland will
serve as Trustee pursuant to the proposed Trust Agreement until such time, if any, as one or more
successor trustee(s) are appointed in accordance with the Regulations, and
WHEREAS, upon due deliberation, the Town Board 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 and restated Model Plan,
NOW, THEREFORE BE IT
RESOLVED, that the Town Board of the Town of Queensbury hereby amends the Deferred
2
Compensation Plan for Employees of the Town of Queensbury effective January 1, 1999 by adopting
the amended and restated Model Plan effective April 1, 1998 in the form attached hereto as Exhibit A,
and
BE IT FURTHER,
RESOLVED, that the Town Board has selected FMB Trust of Baltimore, Maryland to serve
as Trustee pursuant to the proposed Trust Agreement, which will be implemented in substantially the
form attached hereto as Exhibit B.
IN WITNESS WHEREOF, the undersigned have executed this Resolution in Warren County,
th
New York, this 16 day of November, 1998, and directed that it be filed as appropriate.
th
Duly adopted this 16 day of November, 1998 by the following vote:
BY: _Yes______________________________________
FRED CHAMPAGNE, SUPERVISOR
__Yes_____________________________________
DOUG IRISH, COUNCILPERSON
__Yes________________________________
RICHARD MERRILL, COUNCILPERSON
__Yes____________________________________
PLINEY TUCKER, COUNCILPERSON
___Yes____________________________________
THEODORE TURNER, COUNCILPERSON
3