HomeMy WebLinkAboutCSDOC Resolution 1998 - 0020RESOLUTION NO.98-20
APPROVING AMENDMENT TO DEFERRED COMPENSATION
PLAN FOR OFFICERS AND EMPLOYEES
A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS OF
COUNTY SANITATION DISTRICTS NOS.1,2,3,5,6,7,11,13
AND 14 OF ORANGE COUNTY,CALIFORNIA APPROVING
THIRD AMENDMENT TO DEFERRED COMPENSATION PLAN
FOR THE OFFICERS AND EMPLOYEES OF THE DISTRICTS
LAAA A A A A LA ALA A A
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”);by Resolution No.95-80,adopted by the Boards of Directors
on July 26,1995,the Districts approved and adopted the First Amendment to the Plan;
and by Resolution No.98-07,adopted by the Boards of Directors oh March 25,1998,
the Districts approved and adopted the Second Amendment to the Plan;and,
WHEREAS,the Boards of Directors desire to amend the Plan in order to allow
the Districts’officers and employees to invest in any annuity plan and program that
would be in full conformance with the laws and regulations of the Internal Revenue
Service;and,
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 further 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 June 24,1998.
THIRD 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 County Sanitation Districts of Orange County,California (the “Districts”)approved
and adopted a revised deferred compensation plan,known as “the County Sanitation Districts
of Orange County,California Deferred Compensation Plan as Amended 1994”;
WHEREAS,by Resolution No.95-80,adopted by the Boards of Directors on July 26,
1995,the Districts approved and adopted a first amendment to the plan (the “First
Amendment”),to permit greater flexibility in plan distribution elections and to clarify certain
provisions of the plan;
WHEREAS,by Resolution No.98-07,adopted by the Boards of Directors on March 25,
1998,the Districts approved and adopted a second amendment to the plan (the “Second
Amendment”),to conform the plan to Internal Revenue Code section 457 requirements set
forth in P.L.104-1 88 (the County Sanitation Districts of Orange County,California Deferred
Compensation Plan as Amended 1994,as amended by the First Amendment and the Second
Amendment,shall hereinafter be referred to as the “Plan”);
WHEREAS,section 457 of the Internal Revenue Code has been further amended to
permit more flexibility in small account withdrawals under Internal Revenue Code section 457
deferred compensation plans;
WHEREAS,by Resolution No.98-08,adopted by the Boards of Directors on April 22,
1998,the Districts repealed their deferred compensation program (the “Program”)providing
matching and non-matching funds for executive management,management,professional and
supervisory employees;
WHEREAS,the Districts have determined to afford Plan Participants the opportunity to
choose among different Plan providers,including those that may offer annuities that conform
to tax law requirements but that are inconsistent with the structure of the Plan;and
WHEREAS,the Boards of Directors desire to further amend the Plan to comply with
Internal Revenue Code section 457 as amended,to eliminate references to matching and
non-matching funds under the repealed Program,and to expand the annuity distribution
options available to Plan Participants;
THEREFORE,pursuant to Resolution No28-20__,adopted by the Boards of Directors
on 06/24/98
,1998,the Districts do hereby amend the Plan as follows:
1.Sections 10.1.IA(1)and 10.2.IA(1)of the Plan,having to do with distributions to the
Participant following termination of employment,are hereby amended so as to (a)
permit,in addition to the other payment options expressed therein,payment pursuant to
2092-700
64459
CSD Draft No.1
June18,1998 1
an annuity that is offered by a Plan provider providing services to the Districts and that
is structured so as to comply with all applicable provisions of the Internal Revenue
Code,the Treasury Department Regulations,and all other applicable laws,and (b)
permit an annuity payment option to be exercised in combination with a lump-sum
payment option,on the same terms as Sections 10.1.1 and 10.2.1 provide with respect
to the combination of a lump-sum payment option with any of the other permitted
payment options.
2.Section 10.6.2A,subparagraphs (1)and (2),having to do with distributions to
beneficiaries following the death of the Participant,are hereby amended so as to (a)
permit,in addition to the other payment options expressed therein,payment pursuant to
an annuity that is offered by a Plan provider providing services to the Districts and that
is structured so as to comply with all applicable provisions of the Internal Revenue
Code,the Treasury Department Regulations,and all other applicable laws,and (b)
permit an annuity payment option to be exercised in combination with a lump-sum
payment option,on the same terms as Section 10.6.2 provides with respect to the
combination of a lump-sum payment option with any of the other permitted payment
options.
3.Notwithstanding Section 10.7.1 of the Plan to the contrary,with respect to any annuity
payment option elected pursuant to Sections 10.1.IA(1),10.2.IA(1),10.6.2A(1),or
10.6.2A(2),life expectancy may be calculated in any manner permitted by the Internal
Revenue Code,the Treasury Department Regulations,and all other applicable tax
laws.
4.Sections 10.4 and 10.7.3 of the Plan are hereby amended to delete the $3500 figure as
the maximum account balance,as expressed therein,and to substitute therefor an
amount equal to the maximum amount permitted under Internal Revenue Code Section
457 at the time of the withdrawal.
5.Section 13 of the Plan is hereby amended to require notice as described therein to be
made to the attention of the Director of Human Resources.
6.All references in the Plan to matching and non-matching funds are hereby deleted.
7.The Plan shall continue in full force and effect except as expressly amended herein.
2092-700
64459
CSD Draft No.1
Junel8,1998 2
STATE OF CALIFORNIA )
)SS.
COUNTYOF ORANGE )
I,PENNY M.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.98-20 was passed and adopted at a regular
meeting of said Boards on the 24th day of June,1998,by the following vote,to wit:
AYES:Steve Anderson;George Brown;John Collins;Barry Denes;
Shirley Dettloff;Harry M.Dotson;Burnie Dunlap;Norman Z.
Eckenrode;Jan Flory;John M.Gulhxson;Mark Leyes;Patsy
Marshall;Pat McGuigan;Darryl G.Miller;Eva Minor-Bradford;
Mark A.Murphy;John E.Noyes;Arthur Perry;Anna L.Piercy;
Margie L.Rice;Thomas R.Saltarelli;Christina M.Shea;Todd
Spitzer;William G.Steiner;Dave Sullivan;Charles E.Sylvia;Bob
Zemel
NOES:None
ABSENT:None
IN WITNESS WHEREOF,I have hereunto set my hand and affixed the official
seal of County Sanitation District No.I on behalf of itself and Districts Nos.2,3,5,6,7,
11,13 and 14 of Orange County,California,this 24th day of June,1998.
Penny M.K~1j,Secret4~
Boards of Directors,COunty Sanitation
Districts Nos.1,2,3~5,6,7,11,13 and 14 of
Orange County,California 1.
H:\wp.dt&admin\BS\FORMS\1 998\F12.20.doc