HomeMy WebLinkAboutResolution 95-080RESOLUTION NO.95-80
APPROVING AMENDMENT TO DEFERRED COMPENSATION
PLAN FOR OFFICERS AND EMPLOYEES
A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS OF
COUNTY SANITATION DISTRICTS NOS.1,2,3,5,6,7,II,13,
AND 14 OF ORANGE COUNTY,CALIFORNIA,APPROVING
FIRST AMENDMENT TO DEFERRED COMPENSATION PLAN
FOR THE OFFICERS AND EMPLOYEES OF THE DISTRICTS
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WHEREAS,by Resolution No.94-39,adopted by the Boards of Directors on April 13,
1994,the Districts approved and adopted the County Sanitation Districts of Orange County,
California Deferred Compensation Plan as Amended 1994 (hereinafter referred to as the
“Plan”);and,
WHEREAS,the Boards of Directors desire to amend the Plan to permit greater flexibility
in plan distribution elections,to clarify certain provisions of the Plan,and to comply with certain
recent Internal Revenue Service interpretations.
NOW,THEREFORE,the Boards of Directors of County Sanitation Districts Nos.1,2,3,
5,6,7,11,13,and 14 of Orange County,California,
DO HEREBY RESOLVE,DETERMINE AND ORDER:
Section 1 That the County Sanitation Districts of Orange County,California
Deferred Compensation Plan as Amended 1994 is hereby amended as set forth in Exhibit “A,”
attached hereto and incorporated herein by reference as though set forth herein at length,and
as so amended shall remain in effect until further amended or terminated by Resolution of the
Boards of Directors.
PASSED AND ADOPTED at a regular meeting held July 26
,
1995.
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FIRST AMENDMENT TO COUNTY SANITATION DISTRICTS OF ORANGE COUNTY,
CALIFORNIA DEFERRED COMPENSATION PLAN AS AMENDED 1994
WHEREAS,by Resolution No.94-39,adopted by the Boards of Directors on
April 13,1994,the Districts approved and adopted a revised deferred compensation
plan,i.e.,the County Sanitation Districts of Orange County,California Deferred
Compensation Plan as Amended 1994 (the “Plan”);
WHEREAS,the Boards of Directors desire to amend the Plan to permit greater
flexibility in plan distribution elections and to clarify certain provisions of the Plan;
THEREFORE,pursuant to Resolution No.95-80,adopted by the Boards of
Directors on July 26
,
1995 the County Sanitation Districts of Orange County,
California do hereby amend the Plan as follows:
1.Section 3.16 of the Plan is hereby deleted in its entirety and the following
language is hereby inserted in its place and stead:
“Required Beginning Date’shall mean the latest date that distributions are
permitted to commence under Section 10.3.”
2.Section 10.1 of the Plan is hereby deleted in its entirety and the following
language is hereby inserted in its place and stead:
“10.1 Termination of Employment by Retirement The Participant is eligible to
receive distributions of benefits,with respect to retirement,after the
Participant has met the requirements for Normal Retirement and has
retired from service with the Employer.The Participant may submit to the
Employer an application for distribution of benefits under the Plan as early
as the date he notifies the Employer of his intended retirement and as late
as thirty (30)days following the actual date of termination of employment
due to retirement.Pursuant to such application,the Participant shall elect
one of the benefits payment options described below.Such election shall
become irrevocable upon the lapse of the thirtieth (30th)day following
termination of employment with the Employer due to retirement.
Following the Participant’s termination of employment due to retirement
and the receipt of such application,the Employer shall pay to the
Participant one of the following benefits (expressed in terms of both
payment option and commencement date)as elected by the Participant:
PAYMENT OPTION -
(a)Consecutive equal monthly payments over a period of 36
1•
EXHIBIT “A”
months to 180 months,as determined by the Participant;
provided,however,that any such period may not extend
beyond the life expectancy of the Participant or the joint life
and last survivor expectancy of the Participant and the
Participant’s Category A Beneficiary.(This payment option
may be satisfied through annuity distributions.)
(b)Consecutive equal monthly payments for the life of the
Participant or for the lives of the Participant and his Category
A Beneficiary.(This payment option may be satisfied
through annuity distributions.)
(c)A single payment equal to the balance of the Participant’s
Investment Account.
(d)A single lump-sum payment in an amount to be determined
by the Participant,with the remainder of the Participant’s
Investment Account to be paid under either payment option
(a)or payment option (b)above.
COMMENCEMENT DATE OPTION
(a)The first day of the third calendar month following the month
in which termination of employment occurs,or
(b)The first day of a later month as designated by the
Participant.
In the case of payment option (d)above,the lump sum must be
paid on the same date that the first payment over time is paid.
DELAYED PAYMENT ELECTION OPTION -
The irrevocable election which must be submitted to the Employer
no later than thirty (30)days following termination of employment
with the Employer due to retirement may specify the elected
commencement date option only,deferring the election as to the
particular payment option.In such case,the Participant must later
submit an election as to the payment option.Such later election
must be submitted no later than thirty (30)days before the
previously elected commencement date and shall become
irrevocable on the date thirty (30)days before such previously
elected commencement date.Should the Participant fail to timely
submit a separate payment option election hereunder,the
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Employer shall pay the sum in the Participant’s Investment Account
to the Participant according to payment option (C)above,on the
previously elected commencement date.
The foregoing options are limited by,and these payments shall be made
subject to,the provisions of Sections 10.3,10.5,10.6 and 10.7 hereof.
The total amount of any benefits paid pursuant to payment options (a)
through (d)above shall not exceed the sum of the amounts deferred by
the Participant,as adjusted for any earnings or losses thereon.
Should the Participant fail to elect one of the benefits hereunder by way of
an application for retirement benefits filed with the Employer within thirty
(30)days after retirement,the Employer shall pay the sum in the
Participant’s Investment Account according to the “Benefit A”election
previously made pursuant to either the Participation Agreement or a
modification thereof.However,if there is no such previous election,then
the Employer shall pay the sum in the Participant’s Investment Account
according to payment option (c)above on the Required Beginning Date.”
3.Subsection 10.6.2 of the Plan is hereby deleted in its entirety and the following
language is hereby inserted in its place and stead:
“10.6.2 When Participant Dies either before the Required Beginning Date
or before Distributions Have Bequn If a Participant dies either
before the Required Beginning Date or before distribution of his
Investment Accou.nt has begun,and,if any portion of the
Investment Account is payable to (or for the benefit of)a Category
A or B Beneficiary,then the Employer shall pay such portion as
follows -
CATEGORY A BENEFICIARIES
(1)if the Category A Beneficiary is other than the
surviving spouse the portion of the Investment Account
payable to such beneficiary shall be distributed according to
one of the following options:
(a)Consecutive equal monthly payments over a
period of 36 months to 60 months (but not
exceeding the life expectancy of the Category
A Beneficiary);
(b)A single lump-sum payment;or
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(c)A single lump-sum payment in an amount to be
determined by the Participant,with the
remainder of the Participant’s Investment
Account to be paid under payment option (a).
Such distributions shall begin on the date designated
by either the Participant or,if permitted by the
Participant,the Category A Beneficiary,but in no
event later than December 31 of the calendar year
immediately following the calendar year in which the
Participant dies.If payment is made under payment
option (c)above,the lump sum must be paid on the
same date that the first payment over time is paid.
(2)if the Category A Beneficiary is the surviving spouse of
the Participant the portion of the Investment Account
payable to the surviving spouse shall be distributed
according to one of the following options:
(a)Consecutive equal monthly payments over a
period not to extend beyond the life expectancy
of the surviving spouse:
(b)A single lump-sum payment;or
(C)A single lump-sum payment in an amount to be
determined by the Participant,with the
remainder of the Participant’s Investment
Account to be paid under payment option (a).
Such distributions shall begin on the date designated
by either the Participant or,if permitted by the
Participant,the surviving spouse,but in no event later
than the later of (I)December 31 of the calendar year
immediately following the calendar year in which the
Participant dies,and (ii)December 31 of the calendar
year in which the Participant would have attained age
70Y2.Notwithstanding the foregoing,however,if as of
the date of the Participant’s death,both the surviving
spouse and another are Category A Beneficiaries,
then distributions shall begin on or before December
31 of the calendar year immediately following the
calendar year in which the Participant dies.If
payment is made under payment option (c)above,the
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lump sum must be paid on the same date that the first
payment over time is paid.
CATEGORY B BENEFICIARIES
(3)if the beneficiary is a Category B Beneficiary which is a
validly existing legal entity (such as a charitable foundation
or the estate of the Participant),the portion of the Investment
Account payable to such beneficiary shall be distributed as a
lump sum on the first day of the third calendar month
following the month in which the death of the Participant
occurs.
All elections (as to both payment option and commencement date)
to be made under this Subsection 10.6.2(1 )(2)shall be made by the
Participant pursuant to either the “Benefit C”provisions of the
Participation Agreement or a later written election delivered to the
Employer before the death of the Participant.Notwithstanding the
foregoing,however,the Participant,in the Participation Agreement
or such later written election,may specify that,following the death
of the Participant,the Category A Beneficiary may elect,subject to
the foregoing limitations,the form of payments and the
commencement date of distributions.Any such beneficiary
election,however,must be in the form of an irrevocab’e written
election filed with the Employer no later than ninety (90)days
following the date of death of the Participant.In the absence of any
such timely election,the portion of the Investment Account payable
to such Category A Beneficiary shall be distributed to him in a lump
sum on the first day of the fifth calendar month following the month
in which the death of the Participant occurs.
If a Category A Beneficiary dies within six months of the date of the
Participant’s death and before the entire portion of the Investment
Account allocated to him has been paid pursuant to this Subsection
10.6.2,then the remainder of such portion shall be paid to the
contingent beneficiary,if any,designated by the Participant in either
the Participation Agreement or a later written election delivered to
the Employer before the Participant’s death.If there is no such
contingent beneficiary,or if the Category A Beneficiary dies more
than six months after the date of the Participant’s death and before
the entire portion of the Investment Account allocated to him has
been paid pursuant to this Subsection 10.6.2,then the remainder of
such portion shall be paid to the estate of the deceased Category A
Beneficiary.Any payment under this paragraph shall be made in a
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lump sum on the first day of the third calendar month following the
month in which the death of the Category A Beneficiary occurs.
The Participant may designate a trust as his beneficiary under the
Plan.However,in that case,any beneficiary of the trust,who is
eligible to receive trust distributions on account of payments from
the Plan,shall be deemed to be a Category A Beneficiary under the
Plan.(For example)if the Participant designates as his beneficiary
a trust of which his surviving spouse is the life beneficiary,and
elects ‘ifetime payments under option (2)(a)above,then for the
purpose of this Subsection 10.6.2,the surviving spouse shall be
deemed to be the Category A Beneficiary,and the terms of this
subsection shall be applied by basing distributions on the life
expectancy of the surviving spouse.)Notwithstanding the
foregoing,however,a trust may only be designated as a beneficiary
(and the beneficiary of the trust will only be deemed to be a
Category A Beneficiary)if,as of the later of the date that the
Participant submits to the Employer the election in which the trust is
named as a beneficiary or the Required Beginning Date,and as of
all subsequent periods during which the trust is named as a
beneficiary of the Plan,all of the following conditions are met:(1)
the trust is a valid trust under state law,(2)the trust is irrevocable,
(3)the beneficiaries of the.trust can be identified from the trust
instrument,and (4)a copy of the trust instrument has been
provided to the Employer.”
4.Section 12 of the Plan is hereby deleted in its entirety and the following language
is hereby inserted in its place and stead:
“12:Assignments and Transfers
12.1.Consistent with Section 8 above,no one,including the Participant,his
beneficiary or designee,or any other person,shall have any right to
commute,sell,assign,transfer,or otherwise convey the right to receive
any payments hereunder,which payments and right thereto are expressly
declared to be non-assignable and non-transferable.The Employer shaU
have no liability to either the Participant or a purported assignee or
transferee,on account of any attempted assignment or transfer.In
addition,except to the extent otherwise provided by law,no interest of the
Participant in the Plan shall be subject to attachment,garnishment or
execution,or be transferrable by operation of law,whether due to
bankruptcy,insolvency,liquidation for the benefit of creditors,or any other
cause.
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12.2 Notwithstanding the foregoing,however,the amounts deferred by a former
Participant may be transferred to another Internal Revenue Code section,
457 eligible deferred compensation plan of which the former Participant
has become a participant,if the following conditions are met:
(1)the plan to which the former Participant wishes to transfer
amounts deferred is located within the State of California;
(2)the plan receiving such amounts provides for the acceptance
of such amounts;
(3)the employer accepting the transfer funds gives written
notice of its agreement to accept such transfer and assumes
liability therefor;and
(4)the Participant provides a written release to the Employer
releasing the Employer from any claim or liability under the
Plan after the date such transfer of funds occurs.
If a Participant separates from service in order to accept employment with
another entity which permits the Participant to participate in a section 457
eligible deferred compensation plan,and if the four conditions enumerated
above are met,payout of benefits will not commence upon separation
from service,notwithstanding any other provision of the Plan,and
amounts previously deferred will automatically be transferred to that other
entity’s section 457 eligible deferred compensation plan,to be credited to
the Participant’s account.
12.3 A Participant,who was formerly employed by another public agency
located within the State of California,may transfer,to the Plan,funds from
•an Internal Revenue Code section 457 eligible deferred compensation
plan maintained by that former employer,if that eligible deferred
compensation plan permits transfers to other section 457 eligible deferred
compensation plans and if the Participant complies with all applicable
terms and conditions of the transferring plan in effectuating the transfer.”
5.The Plan shall continue in full force and effect except as expressly amended
herein.
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STATE OF CALIFORNIA)
)SS.
COUNTY OF ORANGE
I,PENNY KYLE,Secretary of the Boards of Directors of County Sanitation
Districts Nos.1,2,3,5,6,7,11,13 and 14 of Orange County,California,do
hereby certify that the foregoing Resolution No.95-80 was passed and adopted at
a regular meeting of said Boards on the 26th day of July,1995,by the following
vote,to wit:
AYES:George Brown,John C.Cox,Jr.,Jan Debay,Barry Denes,
Shirley Dettloff,Norman Z.Eckenrode,James M.Ferryman,
James H.Flora,Don R.Griffin,John M.Gullixson,Barry
Hammond,Victor Leipzig,Wally Linn,Mark A.Murphy,Margie
L.Rice,Thomas R.Saltarelli,Sal A.Sapien,George Scott,
Sheldon S.Singer,William G.Steiner,Peer A.Swan,Charles E.
Sylvia,Daniel T.Welch,Bob Zemel
NOES:None
ABSENT:Cecilia L.Age,Burnie Dunlap,Pat McGuigan,Glenn Parker,
Julie Sa
~N WITNESS WHEREOF,I have hereunto set my hand and affixed the official
seal of County Sanitation District No.1 on behalf of itself and Districts Nos.2,3,
5,6,7,11,13 and 14 of Orange County,California,this 26th day of July,1995.
Pe~
yle,Set~~
Boards of Dire t rs,nty Sanitation
Districts Nos.1,2,3,5,6,7,11,13 and
14 of Orange County,California
J:\WPDOC\BS\FORMS\95\F1 2.80