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HomeMy WebLinkAboutAUL HEART and WRERA Amendment for 457/HR • jl HEART/WRERA Amendment—457(b) HEART AND WRERA AMENDMENT FOR 457(b) PLAN ARTICLE 1 PREAMBLE 1.1 Effective date of Amendment. The Employer adopts this Amendment to the Plan to reflect recent law changes. This Amendment is effective as indicated below for the respective provisions. 1.2 Superseding of inconsistent provisions. This Amendment supersedes the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment. 1.3 Employer's election. The Employer adopts all the default provisions of this Amendment except as otherwise elected in Article II. 1.4 Construction. Except as otherwise provided in this Amendment, any reference to "Section' in this Amendment refers only to sections within this Amendment, and is not a reference to the Plan. The Article and Section numbering in this Amendment is solely for purposes of this Amendment, and does not relate to any Plan article, section or other numbering designations. 1.5 Effect of restatement of Plan. If the Employer restates the Plan,then this Amendment shall remain in effect after such restatement unless the provisions in this Amendment are restated or otherwise become obsolete (e.g., if the Plan is restated onto a plan document which incorporates these provisions). ARTICLE II EMPLOYER ELECTIONS The Employer only needs to complete the questions in Sections 2.2 through 2.3 below in order to override the default provisions set forth below. 2.1 Default Provisions. Unless the Employer elects otherwise in this Article, the following defaults will apply: a. Continued benefit accruals pursuant to the Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART Act) are not provided. b. Differential wage payments are treated as Compensation for all Plan benefit purposes. c. The Plan does not permit distributions pursuant to the HEART Act on account of "deemed" severance of employment. d. Requirement Minimum Distributions (RMDs) for 2009 were continued pursuant to Amendment Section 4.2 for Participants or Beneficiaries receiving automatic installments unless they elected not to receive such distributions. Required Minimum Distributions (RMDs) for 2009 were suspended pursuant to Amendment Section 4.1 for all other Participants or Beneficiaries unless they elected to receive such distributions. 2.2 HEART ACT provisions (Article Ill). Continued benefit accruals. Amendment Section 3.2 will not apply unless elected below: a. [ ] The provisions of Amendment Section 3.2 apply effective as of: (select one) 2008 OneArnerica Financial Partners, Inc. Page I of 5 G76040 457(b) HEART/WRERA Amendment—457(b) 1. [ ] the first day of the 2007 Plan Year 2. [ ] (may not be earlier than the first day of the 2007 Plan Year). However, the provisions no longer apply effective as of: (select if applicable) 3. [ Differential pay. Differential wage payments (as described in Amendment Section 3.3) will be treated, for Plan Years beginning after December 31, 2009, as compensation for all Plan benefit purposes unless b. is elected below: b. [ ] In lieu of the above default provision, the employer elects the following (select all that apply; these selections do not affect the operation of Amendment Section 3.3(ii)): 1. [ ] the inclusion is effective for Plan Years beginning after (may not be earlier than December 31,2008). 2. [ ] the inclusion only applies to Compensation for purposes of Elective Deferrals. Distributions for deemed severance of employment. The Plan does not permit distributions pursuant to Amendment Section 3.4 unless otherwise elected below: c. [ ] The Plan permits such distributions effective as of (may not be earlier than January 1, 2007). 2.3 WRERA (RMD waivers for 2009). The provisions of Amendment Section 4.1 and 4.2 as described in Section 2.1.d. apply unless otherwise elected below: a. [ ] The provisions of Amendment Section 4.1 apply (RMDs are suspended unless a Participant or Beneficiary elects otherwise). b. [ ] The provisions of Amendment Section 4.2 apply (RMDs continued unless otherwise elected by a Participant or Beneficiary). c. [ ] RMDs continued in accordance with the terms of the Plan without regard to this Amendment (i.e.,no election available to Participants or Beneficiaries). d. [ ] Other For purposes of Amendment Section 4.3, a Governmental Eligible 457 Plan will also treat the following as eligible rollover distributions in 2009: (If no election is made, then a direct rollover will be offered only for distributions that would be eligible rollover distributions without regard to Code §401(a)(9)(H)): e. [ ] 2009 RMDs and Extended 2009 RMDs (both as defined in Article IV of this Amendment). f. [ ] 2009 RMDs (as defined in Article IV of this Amendment) but only if paid with an additional amount that is an eligible rollover distribution without regard to Code §401(a)(9)(H). ARTICLE III HEART ACT PROVISIONS 3.1 Death benefits. In the case of a death occurring on or after January 1, 2007, if a Participant in a Governmental Eligible 457 Plan dies while performing qualified military service (as defined in Code §414(u)),the Participant's Beneficiary is entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the Plan as if the Participant had resumed employment and then terminated employment on account of death. Moreover, the Plan will credit the Participant's qualified military service as service for vesting purposes, as though the Participant had resumed employment under USERRA immediately prior to the Participant's death. © 2008 OneAmerica Financial Partners, Inc. Page 2 of 5 G76040 457(b) HEART/W RERA Amendment—457(b) 3.2 Benefit accrual. If the Employer elects in Amendment Section 2.2 to apply this Section 3.2, then effective as of the date specified in Amendment Section 2.2, for benefit accrual purposes, the Plan treats an individual who dies or becomes disabled (as defined under the terms of the Plan) while performing qualified military service with respect to the Employer as if the individual 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. a. Determination of benefits. The Plan will determine the amount of employee contributions and the amount of elective deferrals of an individual treated as reemployed under this Section 3.2 for purposes of applying paragraph Code §414(u)(8)(C) on the basis of the individual's average actual employee contributions or elective deferrals for the lesser of: (i) the 12-month period of service with the Employer immediately prior to qualified military service; or (ii) the actual length of continuous service with the Employer. 3.3 Differential wage payments. For years beginning after December 31, 2008: (i) an individual receiving a differential wage payment,as defined by Code §3401(h)(2), is treated as an employee of the employer making the payment; (ii) the differential wage payment is treated as compensation for purposes of Code §415(c)(3) and Treas. Reg. §1.415(c)-2 (e.g., for purposes of Code §415, including the definition of post-severance compensation for deferral purposes under Treas. Reg. §1.457-4(d)(1)); and (iii) the Plan is not treated as failing to meet the requirements of any provision described in Code §414(u)(1)(C) (or corresponding plan provisions) by reason of any contribution or benefit which is based on the differential wage payment. The Plan Administrator operationally may determine, for purposes of the provisions described in Code §414(u)(1)(C), whether to take into account any deferrals, and if applicable, any matching contributions, attributable to differential wages. Differential wage payments (as described herein) will also be considered compensation for all Plan purposes unless otherwise elected at Amendment Section 2.2. Section 3.3(iii) above applies only if all employees of the Employer performing service in the uniformed services described in Code §3401(h)(2)(A) are entitled to receive differential wage payments (as defined in Code §3401(h)(2)) on reasonably equivalent terms and, if eligible to participate in a retirement plan maintained by the Employer, to make contributions based on the payments on reasonably equivalent terms (taking into account Code §§410(b)(3), (4),and(5)). 3.4 Deemed Severance. Notwithstanding Section 3.3(i), if a Participant performs service in the uniformed services (as defined in Code §414(u)(12)(B)) on active duty for a period of more than 30 days, the Participant will be deemed to have a severance from employment solely for purposes of eligibility for distribution of amounts not subject to Code §412. However, the Plan will not distribute such a Participant's account on account of this deemed severance unless the Participant specifically elects to receive a benefit distribution hereunder. If a Participant elects to receive a distribution on account of this deemed severance, then the individual may not make an elective deferral or employee contribution during the 6-month period beginning on the date of the distribution. If a Participant would be entitled to a distribution on account of a deemed severance, and a distribution on account of another Plan provision (such as a qualified reservist distribution), then the other Plan provision will control and the 6-month suspension will not apply. © 2008 OneAmerica Financial Partners, Inc. Page 3 of 5 G76040 457(b) HEART/WRERA Amendment—457(b) ARTICLE IV WAIVER OF 2009 REQUIRED DISTRIBUTIONS 4.1 Suspension of RMDs unless otherwise elected by Participant. This paragraph does not apply if the Employer elected Amendment Section 2.3 b, c, or d. Notwithstanding the provisions of the Plan relating to required minimum distributions under Code§401(a)(9), a Participant or Beneficiary who • would have been required to receive required minimum distributions for 2009 but for the enactment of Code §401(a)(9)(H) ("2009 RMDs"), and who would have satisfied that requirement by receiving distributions that are(1) equal to the 2009 RMDs or(2) one or more payments in a series of substantially equal distributions (that include the 2009 RMDs) made at least annually and expected to last for the life (or life expectancy) of the Participant, the joint lives (or joint life expectancy) of the Participant and the Participant's designated Beneficiary, or for a period of at least 10 years ("Extended 2009 RMDs"), will not receive those distributions for 2009 unless the Participant or Beneficiary chooses to receive such distributions. Participants and Beneficiaries described in the preceding sentence will be given the opportunity to elect to receive the distributions described in the preceding sentence. 4.2 Continuation of RMDs unless otherwise elected by Participant. This paragraph does not apply if Amendment Section 2.3 a, c, or d is selected. Notwithstanding the provisions of the Plan relating to required minimum distributions under Code §401(a)(9), a Participant or Beneficiary who would have been required to receive required minimum distributions for 2009 but for the enactment of Code §401(a)(9)(H) ("2009 RMDs"), and who would have satisfied that requirement by receiving distributions that are (1) equal to the 2009 RMDs or (2) one or more payments in a series of substantially equal distributions (that include the 2009 RMDs) made at least annually and expected to last for the life (or life expectancy) of the Participant, the joint lives (or joint life expectancy) of the Participant and the Participant's designated Beneficiary, or for a period of at least 10 years ("Extended 2009 RMDs"), will receive those distributions for 2009 unless the Participant or Beneficiary chooses not to receive such distributions. Participants and Beneficiaries described in the preceding sentence will be given the opportunity to elect to stop receiving the distributions described in the preceding sentence. 4.3 Direct Rollovers. Notwithstanding the provisions of the Plan relating to required minimum distributions under Code §401(a)(9), and solely for purposes of applying the direct rollover provisions applicable to an Employer sponsoring a Governmental Eligible 457 Plan, certain additional distributions in 2009, as elected by the Employer in Amendment Section 2.3, will be treated as eligible rollover distributions. If no election is made by the Employer in Amendment Section 2.3, then a direct rollover will be offered only for distributions that would be eligible rollover distributions without regard to Code §401(a)(9)(H). ARTICLE V PARTICIPANT ELECTION OF TIME AND METHOD 5.1 Participant Election of Time and Method. The Employer in the Adoption Agreement must elect whether to permit Participants to elect the timing and method of distribution of their Account in accordance with Plan Section 4.02. The Plan Administrator must consent to the specific terms of any such Participant election and the Plan Administrator in its sole discretion may withhold consent. Subject to the foregoing conditions, a Participant: (1) may elect to postpone distribution of his/her Account beyond the time the Employer has elected in its Adoption Agreement, to any fixed or determinable date including, but not beyond, the Participant's required beginning date; and (2) may elect the method of payment. Effective as of the date this Plan amendment is adopted, a Participant may elect the timing and method of payment of his/her Account prior to the date the © 2008 OneAmerica Financial Partners,Inc. Page 4 of 5 G76040 457(b) HEART/WRERA Amendment—457(b) Plan Administrator or Trustee first would commence payment of the Participant's Account in accordance with the Adoption Agreement. The Plan Administrator must furnish to the Participant a form for the Participant to elect the time and a method of payment. 2 This Amendment has been executed this � day of ��-al-1 ,203 . U I Name of Plan: Deferred Compensation Plan of the City of Carmel, Indiana Name of Employer: City oofCa/rmel,Indiana By: di/U P/ (/Y U' EMPLOYER Name of Employer: Carmel Clay Department of Parks and Recreation By: EMPLOYER Signature Page Attached © 2008 OneAmerica Financial Partners, Inc. Page 5 of 5 G76040 457(b) CITY OF CARMEL, INDIANA By and through its Board of Public Works and Safety // Jap s Brainard, Presiding Officer Dat��7 Mary A Burke, Board Member Date Lori Wats oard Member Date ATTEST:Qda d/A (9 Diana'Cordray, IAMC;9flerk-Treasurer Date