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AUL Pension Protection Act Amendment 457/HR 0 Governmental PENSION PROTECTION ACT AMENDMENT FOR 457(b)PLAN City of Carmel, Indiana and Carmel Clay Department of Parks and Recreation, as Employer sponsor("Employer"), adopts this Amendment to the Deferred Compensation Plan of the City of Carmel. Indiana("Plan"). RECITALS Recent law changes, including the Pension Protection Act of 2006 ("PPA"), affect the Plan; and The Plan gives the Employer the authority to make amendments to the Plan, and the Employer wishes to update the Plan for law changes currently in effect. The Employer therefore amends the Plan by adding the following provisions to the Plan: ARTICLE I PREAMBLE 1.1 Adoption and 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 Articles of this Amendment, except those Articles which the Employer specifically elects not to adopt. 1.4 Construction. Any "Section" reference in this Amendment refers only to 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 the Plan article, section or other numbering designations. ARTICLE II DEFINITION OF UNFORESEEABLE EMERGENCY 2.1 Application. Effective for taxable years beginning after December 31, 2001, this Article II applies only if the Plan permits a distribution to a Participant on account of an unforeseeable emergency. 2.2 Definition of unforeseeable emergency. An unforeseeable emergency is a severe financial hardship of a Participant or Beneficiary resulting from: (1) illness or accident of the Participant, the Participant's Beneficiary, or the Participant's or Beneficiary's spouse or dependent (as defined in Code §152, and, for taxable years beginning on or after January I, 2005, without regard to Code §152(b)(1), (b)(2), and (d)(1)(B)); (2) loss of the Participant's or Beneficiary's property due to casualty; (3) the need to pay for the funeral expenses of the Participant's or Beneficiary's spouse or dependent (as defined in Code §152, and, for taxable years beginning on or after January 1, 2005, without regard to Code §I52(b)(1). (b)(2), and (d)(1)(B)); or (4) other similar extraordinary and unforeseeable circumstances arising from events beyond the Participant's or Beneficiary's control. 2.3 Definition of Beneficiary. The Participant's Beneficiary is a person who a Participant designates and who is or may become entitled to a Participant's Plan account upon the Participant's death. 2008 OneAmerica Financial Partners, Inc. Page 1 of 6 G76040 457(b) Governmental ARTICLE III DEFERRALS FROM POST-SEVERANCE COMPENSATION 3.1 Post-severance deferrals limited to Post-Severance Compensation. For taxable years beginning after December 31, 2001, deferrals are permitted from an amount received following Severance from Employment only if the amount is Post-Severance Compensation as defined in Section 3.2. 3.2 Post-Severance Compensation defined. Post-Severance Compensation for purposes of this Article III includes the amounts described in (a) and, if elected, (b) below, paid after a Participant's Severance from Employment with the Employer, but only to the extent such amounts are paid by the later of 21/2 months after Severance from Employment or the end of the calendar year that includes the date of such Severance from Employment. The Employer, by its election in this Amendment, also may elect to include in the definition of Post-Severance Compensation the amounts described in (c) or(d)below, or both. (a) Regular pay. Post-Severance Compensation includes regular pay after Severance of Employment if: (i) the payment is regular compensation for services during the Participant's regular working hours, or compensation for services outside the Participant's regular working hours (such as overtime or shift differential), commissions, bonuses, or other similar payments; and (ii) the payment would have been paid to the Participant prior to a Severance from Employment if the Participant had continued in employment with the Employer. (b) Leave cashouts and deferred compensation. Post-Severance Compensation does not include (unless the Employer elects in (b)(1) below to include all of the amounts described in this (b)) leave cashouts if those amounts would have been included in the definition of Compensation if they were paid prior to the Participant's Severance from Employment, and the amounts are payment for unused accrued bona fide sick, vacation, or other leave, but only if the Participant would have been able to use the leave if employment had continued. In addition, Post-Severance Compensation includes payments of deferred compensation if the compensation would have been included in the definition of Compensation if it had been paid prior to the Participant's Severance from Employment, and the compensation is received pursuant to a nonqualified unfunded deferred compensation plan,but only if the payment would have been paid at the same time if the Participant had continued in employment with the Employer and only to the extent that the payment is includible in the Participant's gross income. IX] (1) Election to include leave cashouts and deferred compensation. The Employer elects to include all of the amounts described in this(b) as Post-Severance Compensation. (c) Salary continuation payments for military service Participants. Post-Severance Compensation does not include (unless the Employer elects (c)(1) below to include all of the amounts described in this (c)) payments to an individual who does not currently perform services for the Employer by reason of Qualified Military Service (as described in Code§414(u)(I)) to the extent those payments do not exceed the amounts the individual would have received if the individual had continued to perform services for the Employer rather than entering Qualified Military Service. IX) (1) Election to include salary continuation payments for military service Participants. The Employer elects to include all of the amounts described in this (c) as Post-Severance Compensation. (d) Salary continuation payments for disabled Participants. Post-Severance does not include Compensation paid to a Participant who is permanently and totally disabled (as defined in Code © 2008 OneAmerica Financial Partners, Inc. Page 2 of 6 G76040 457(6) Governmental §22(e)(3)) (unless the Employer elects (d)(l)below to include all of the amounts described in this (d)). If elected, this provision will apply either only to non-highly compensated Participants or to all Participants for the fixed or determinable period specified in Section 3.2(d)(1)(ii)below. I 1 (1) Election to include salary continuation payments for disabled Participants. The Employer elects to include all of the amounts described in this (d) as Post-Severance Compensation. In addition, this provision will apply as follows (Choose only one of(i) or I I (i) Non-highly compensated only. This provision applies only to disabled employees who are non-highly compensated employees immediately before becoming disabled. I (ii) Fixed or determinable period. This provision applies to all employees who are permanently and totally disabled, for the following period: (e.g.,for a period of two years from the date of the disability) 3.3 Limitation on Post-Severance Compensation. Any payment of Compensation paid after Severance of Employment that is not described in Section 3.2(a), (b), (c) or(d) above is not Post- Severance Compensation, even if payment is made by the later of 21/2 months after Severance from Employment or by the end of the calendar year that includes the date of such Severance of Employment. ARTICLE IV QUALIFIED DOMESTIC RELATIONS ORDERS 4.1 Application. Effective April 6, 2007, this Article IV applies only if the Plan permits a distribution pursuant to a qualified domestic relations order("QDRO"). 4.2 Permissible QDROs. A domestic relations order that otherwise satisfies the requirements for a QDRO will not fail to be a QDRO: (i) solely because the order is issued after, or revises, another domestic relations order or QDRO; or(ii) solely because of the time at which the order is issued, including issuance after the annuity starting date or after the Participant's death. 4.3 Other QDRO requirements apply. A domestic relations order described in Section 4.1 is subject to the same requirements and protections that apply to QDROs. ARTICLE V PARTICIPANT DISTRIBUTION NOTIFICATION 5.1 180-day notification period. For any distribution notice issued in plan years beginning after December 31, 2006, any reference to the 90-day maximum notice period prior to distribution in applying the notice requirements of Code §402(1) (the rollover notice relating to an eligible rollover distribution), means 180 days. ARTICLE VI DIRECT ROLLOVER OF NON-SPOUSE BENEFICIARY DISTRIBUTION 6.1 Non-spouse beneficiary rollover right. For distributions after December 31, 2006, a non-spouse beneficiary who is a "designated beneficiary" under Code §401(a)(9)(E) and the regulations thereunder, by a direct trustee-to-trustee transfer ("direct rollover"), may roll over all or any portion of his/her distribution to an individual retirement account (including a Roth IRA) the beneficiary establishes for purposes of receiving the distribution. In order to be able to roll over the distribution, the distribution otherwise must satisfy the definition of an eligible rollover distribution. © 2008 OneAmerica Financial Partners, Inc. Page 3 of 6 G76040 457(b) Governmental 6.2 Certain requirements not applicable. Although a non-spouse beneficiary may roll over directly a distribution as provided in Section 6.1, the distribution is not subject to the direct rollover requirements of Code §401(a)(31), the notice requirements of Code §402(f) or the mandatory withholding requirements of Code §3405(c). If a non-spouse beneficiary receives a distribution from the Plan, the distribution is not eligible for a"60-day"rollover. 6.3 Trust beneficiary. If the Participant's named beneficiary is a trust, the Plan may make a direct rollover to an individual retirement account on behalf of the trust, provided the trust satisfies the requirements to be a designated beneficiary within the meaning of Code §401(a)(9)(E). 6.4 Required minimum distributions not eligible for rollover. A non-spouse beneficiary may not roll over an amount which is a required minimum distribution, as determined under applicable Treasury regulations and other IRS guidance. 6.5 Mandatory default rollover not applicable. The mandatory default rollover provisions of the Plan under Code §401(a)(31)(13), relating to mandatory distributions (of an eligible rollover distribution) greater than $1,000, do not apply to distributions to a non-spouse beneficiary. ARTICLE VII STATUTORY HURRICANE RELIEF 7.1 Qualified Hurricane Distribution. A Participant may take a Qualified Hurricane Distribution, provided that the aggregate amount of Qualified Hurricane Distributions received by a Participant for any taxable year (from all plans maintained by the Employer, including any member of any controlled group that includes the Employer)may not exceed $100,000. (a) Repayment of distribution. If the Plan permits rollover contributions, a Participant who receives a Qualified Hurricane Distribution, at any time during the 3-year period beginning on the day after receipt of the distribution, may make one or more contributions to the Plan, as rollover contributions, in an aggregate amount not to exceed the amount of such distribution. (b) Definition of Qualified Hurricane Distribution. A "Qualified Hurricane Distribution" means a distribution defined in Code §1400Q(a)(4)(A), which does not exceed the amount limitation described in this Section 7.1. 7.2 Recontribution of home purchase withdrawal. If the Plan permits rollover contributions, a Participant who received a Qualified Distribution (relating to a hardship distribution to purchase or construct a principal residence in an applicable hurricane disaster area),but who, on account of the hurricane, did not use the funds to purchase or construct a principal residence, may make one or more contributions to the Plan, as rollover contributions, during the Applicable Period, in an aggregate amount not to exceed the amount of such Qualified Distribution. (a) Definition of Qualified Distribution. A "Qualified Distribution" for purposes of this Section 7.2 means any qualified Katrina distribution,any qualified Rita distribution, and any qualified Wilma distribution,as defined in Code §14000(b)(2). (b) Definition of Applicable Period. The "Applicable Period" for purposes of this Section 7.2 means the applicable period as defined in Code §14000(b)(3). 7.3 Increased loan limit and repayment extension. Notwithstanding the loan limitation that otherwise would apply, the Plan will determine the loan limit under Code §72(p)(2)(A) for a loan to a Qualified Individual made during the Applicable Period by substituting "$100,000" for "$50,000," and by substituting "the present value of the nonforfeitable accrued benefit of the © 2008 OneAmerica Financial Partners, Inc. Page 4 of 6 G76040 457(b) Governmental employee under the Plan" for "one-half of the present value of the nonforfeitable accrued benefit of the employee under the Plan." (a) Extension of certain repayments. If a Qualified Individual has an outstanding loan from the Plan on or after the Qualified Beginning Date, then: (i) if the date for any repayment of such loan occurs during the period beginning on the Qualified Beginning Date and ending on December 31, 2006, the due date is extended for one year; (ii) the Plan will adjust any subsequent repayments to reflect the extension of the due date under (i) and any interest accrued during the extension; and (iii) the Plan will disregard the period of extension described in (i) in determining the 5-year period and the loan term under Code §72(p)(2)(B) or(C). (b) Definition of Qualified Individual. A "Qualified Individual" for purposes of this Section 7.3 means any qualified individual as defined in Code §I4000(c)(3). (c) Definition of Applicable Period. The "Applicable Period" for purposes of this Section 7.3 means the applicable period as defined in Code §I4000(c)(4). (d) Definition of Qualified Beginning Date. The "Qualified Beginning Date" for purposes of this Section 7.3 means the qualified beginning date as defined in Code §1400Q(c)(4). J Election to permit Statutory Hurricane Relief. ARTICLE VIII HEALTH AND LONG-TERM CARE INSURANCE DISTRIBUTIONS 8.1 Election to deduct from distribution. For distributions in taxable years beginning after December 31, 2006, an Eligible Retired Public Safety Officer may elect annually for that taxable year to have the Plan deduct an amount from a distribution which the Eligible Retired Public Safety Officer otherwise would receive and include in income. The plan will pay such deducted amounts directly to the provider as described in Section 8.2, to pay qualified health insurance premiums. 8.2 Direct payment. The Plan will pay directly to the provider of the accident or health insurance plan or qualified long-term care insurance contract the amounts the Eligible Retired Public Safety Officer has elected to have deducted from the distribution. Such amounts may not exceed the lesser of $3,000 or the amount the Participant paid for such taxable year for qualified health insurance premiums, and which otherwise complies with Code §402(1). 8.3 Definitions. (a) Eligible retired public safety officer. An "Eligible Retired Public Safety Officer" is an individual who, by reason of disability or attainment of normal retirement age, is separated from service as a Public Safety Officer with the Employer. (b) Public safety officer. A "Public Safety Officer" has the same meaning as in Section 1204(9)(A) of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 37966(9)(A)). (c) Qualified health insurance premiums. The term "qualified health insurance premiums" means premiums for coverage for the Eligible Retired Public Safety Officer, his/her spouse, and dependents, by an accident or health insurance plan or qualified long-term care insurance contract (as defined in Code§7702B(b)). j Election to permit health and long-term care insurance distributions. © 2008 OneAmerica Financial Partners, Inc. Page 5 of 6 G76040 457(b) Governmental ARTICLE IX DIRECT ROLLOVER TO ROTH 9.1 Roth IRA rollover. For distributions made after December 31, 2007, a Participant may elect to roll over directly an eligible rollover distribution to a Roth IRA described in Code §408A(b). Except as provided in this Amendment, the Plan remains unchanged and in full force and effect. The Employer has executed this Amendment on CITY OF CARMEL, INDIANA By: [Print Name, Title] CARMEL CLAY DEPARTMENT OF PARKS AND RECREATION By: [Print Name, Title] Signature Page Attached © 2008 OneAmerica Financial Partners, Inc. Page 6 of 6 G76040 457(b) CITY OF CARMEL, INDIANA By and through its Board of Public Works and Safety James ma d residing Officer Date /9// l- 9—i3 Mary Ann ur e, Board Member Date ' 1/ 4 it 3 Lori Wa, tso , oard Member Date • (MA CA. 7113 iana Cordray, IA €, Clerk-Treasurer Date