The URL can be used to link to this page

Home My WebLink AboutOCSD 03-32RESOLUTION NO. OCSD 03-32 AMENDING DISTRICT'S EXECUTIVE MONEY PURCHASE PENSION PLAN AND TRUST (THIRD AMENDMENT) A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT APPROVING THE THIRD AMENDMENT TO THE DISTRICT'S EXECUTIVE MONEY PURCHASE PENSION PLAN AND TRUST WHEREAS, the Board of Directors of District, on October 28, 1998, approved an Executive Money Purchase Pension Plan and Trust, as authorized by United States Internal Revenue Code Section 401 (a); and WHEREAS, pursuant to the provisions of Section 9.1, the Board of Directors of the Employer (the "Board") has the authority to amend the Plan document; and WHEREAS, the Internal Revenue Service has issued regulations requiring the amendment of the Plan to reflect the requirements of Section 401 (a)(9) of the Internal Revenue Code of 1986, as amended (the "401 (a)(9) Requirements"). NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: That the Third Amendment to the District's Executive Money Purchase Pension Plan and Trust be, and hereby is, approved and adopted in the form attached hereto as Exhibit "A". PASSED AND ADOPTED at a regular meeting held December 17, 2003. . \ :~ . ..: > . )_ .. '-.. . /,· . . . , '\ I' ~' \~ '•· ....,.,.....-I ' ,..-1,, ~:!·~.: ·~~.~.:_._:_-_ Vice (3f;air · , , ;· '"-' · . . ' (-·11 \ '\ I . J. .... . >. \. WS&S -TLW:pj:12/11/03:#178548 TIDRD AMENDMENT TO ORANGE COUNTY SANITATION DISTRICT EXECUTIVE MONEY PURCHASE PENSION PLAN AND TRUST This Third Amendment (the "Amendment") to the Orange County Sanitation District Executive Money Purchase Pension Plan and Trust (the "Plan") is approved this 17th day of December, 2003 by the Orange County Sanitation District (the "Employer"), the sponsoring employer of the Plan. The District's Executive Money Purchase Pension Plan and Trust is amended as follows: The following new Article 12 shall be added after Article 11: ARTICLE XII REQUIRED MINIMUM DISTRIBUTIONS Section 12.1 -General Rules a. Effective Date. The provisions of this Article will apply for purposes of determining required minimum distributions for calendar years beginning with the 2003 calendar year. b. Precedence. The requirements of this Article will take precedence over any inconsistent provisions of the Plan. c. Requirements of Treasury Regulations Incorporated. All distributions required under this Article will be determined and made in accordance with the Treasury regulations under Section 40l(a)(9) of the Code. d. TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions of this Article, distributions may be made under a designation made before January 1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the Plan that relate to Section 242(b)(2) ofTEFRA. Section 12.2 -Time and Manner of Distribution. a. Required Beginning Date. The Participant's entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant's required beginning date. b. Death of Participant Before Distributions Begin. If the Participant dies before distributions begin, the Participant's entire interest will be distributed, or begin to be distributed, no later than as follows: (i) If the Participant's Surviving Spouse is the Participant's sole designated beneficiary, then subject to paragraph (v) below distributions to the Surviving Spouse will begin by December 31 of the calendar year immediately WS&S -TLW:pj: 10/11/03:# 178550 1 following the calendar year in which the Participant died, or by December 31 of the calendar year in which the Participant would have attained age 70 1/2, iflater. (ii) If the Participant's Surviving Spouse is not the Participant's sole designated beneficiary, then subject to paragraph (v) below distributions to the designated beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died. (iii) If there is no designated beneficiary as of September 30 of the year following the year of the Participant's death, the Participant's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant's death. (iv) If the Participant's Surviving Spouse is the Participant's sole designated beneficiary and the Surviving Spouse dies after the Participant but before distributions to the Surviving Spouse begin, this Section 12.Z(b), other than Section 12.2(b)(i), will apply as if the Surviving Spouse were the Participant. (v) If the Participant dies before distributions begin and there is a designated beneficiary, distribution to the designated beneficiary is not required to begin by the date specified in paragraphs (i) or (ii) above if the Participant's entire interest is distributed to the designated beneficiary by December 31 of the calendar year containing the fifth anniversary of the Participant's death. For purposes of this Section 12.2(b) and Section 12.4, unless Section 12.2(b)(iv) applies, distributions are considered to begin on the Participant's required beginning date. If Section 12.2(b)(iv) applies, distributions are considered to begin on the date distributions are required to begin to the Surviving Spouse under Section 12.2(b)(i). If distributions under an annuity purchased from an insurance company irrevocably commence to the Participant before the Participant's required beginning date (or to the Participant's Surviving Spouse before the date distributions are required to begin to the Surviving Spouse under Section 12.2(b)(i)), the date distributions are considered to begin is the date distributions actually commence. c. Forms of Distribution. Unless the Participant's interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the required beginning date, as of the first distribution calendar year distributions will be made in accordance with Sections 12.3 and 12.4 of this Article. If the Participant's interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Section 401(a)(9) of the Code and the Treasury regulations. Section 12.3 -Required Minimum Distributions During Participant's Lifetime a. Amount of Required Minimum Distribution For Each Distribution Calendar Year. During the Participant's lifetime, the minimum amount that will be distributed for each distribution calendar year is the lesser of: WS&S -TLW:pj: 10/l 1/03:#178550 2 (i) the quotient obtained by dividing the Participant's Account balance by the distribution period in the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of the Treasury regulations, using the Participant's age as of the Participant's birthday in the distribution calendar year; or (ii) if the Participant's sole designated beneficiary for the distribution calendar year is the Participant's Spouse, the quotient obtained by dividing the Participant's Account balance by the number in the Joint and Last Survivor Table set forth in Section 1.40l(a)(9)-9 of the Treasury regulations, using the Participant's and Spouse's attained ages as of the Participant's and Spouse's birthdays in the distribution calendar year. b. Lifetime Required Minimum Distributions Continue Through Year of Participant's Death. Required minimum distributions will be determined under this Section 12.3 beginning with the first distribution calendar year and up to and including the distribution calendar year that includes the Participant's date of death. Section 12.4 -Required Minimum Distributions After Participant's Death a. Death On or After Date Distributions Begin. (i) Participant Survived by Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is a designated beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account balance by the longer of the remaining life expectancy of the Participant or the remaining life expectancy of the Participant's designated beneficiary, determined as follows: (a) The Participant's remaining life expectancy is calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. (b) If the Participant's Surviving Spouse is the Participant's sole designated beneficiary, the remaining life expectancy of the Surviving Spouse is calculated for each distribution calendar year after the year of the Participant's death using the Surviving Spouse's age as of the Spouse's birthday in that year. For distribution calendar years after the year of the Surviving Spouse's death, the remaining life expectancy of the Surviving Spouse is calculated using the age of the Surviving Spouse as of the Spouse's birthday in the calendar year of the Spouse's death, reduced by one for each subsequent calendar year. ( c) If the Participant's Surviving Spouse is not the Participant's sole designated beneficiary, the designated beneficiary's remaining life expectancy is calculated using the age of the beneficiary in the year following the year of the Participant's death, reduced by one for each subsequent year. WS&S -TL W :pj: I 011 l 103:#178550 3 u • (ii) No Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is no designated beneficiary as of September 30 of the year after the year of the Participant's death, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account balance by the Participant's remaining life expectancy calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. b. Death Before Date Distributions Begin. (i) Participant Survived by Designated Beneficiary. The minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account balance by the remaining life expectancy of the Participant's designated beneficiary, determined as provided in Section 12.4(a). (ii) No Designated Beneficiary. If the Participant dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year following the year of the Participant's death, distribution of the Participant's entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Participant's death. (iii) Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required to Begin. If the Participant dies before the date distributions begin, the Participant's Surviving Spouse is the Participant's sole designated beneficiary, and the Surviving Spouse dies before distributions are required to begin to the Surviving Spouse under Section 12.2(a)(i), this Section 12.4(b) will apply as if the Surviving Spouse were the Participant. Section 12.5 -Definitions a. Designated Beneficiary. The individual who is designated as the Beneficiary as provided in Section 2.4 and is the designated beneficiary under Section 40l(a)(9) of the Code and Section l.40l(a)(9)-l, Q&A-4, of the Treasury regulations. b. Distribution calendar year. A calendar year for which a minimum distribution is required. For distributions beginning before the Participant's death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the Participant's required beginning date. For distributions beginning after the Participant's death, the first distribution calendar year is the calendar year in which distributions are required to begin under Section 12.2(b). The required minimum distribution for the Participant's first distribution calendar year will be made on or before the Participant's required beginning date. The required minimum distribution for other distribution calendar years, including the required minimum distribution for the distribution calendar year in which the Participant's required beginning date occurs, will be made on or before December 3 1 of that distribution calendar year. c. Life expectancy. Life expectancy as computed by use of the Single Life Table in Section 1.401(a)(9)-9 of the Treasury regulations. WS&S -TLW:pj: 10/11103:#178550 4 ... . .,, d. Participant's account balance. The Account balance as of the last valuation date in the calendar year immediately preceding the distribution calendar year (valuation calendar year) increased by the amount of any contributions made and allocated or forfeitures allocated to the Account balance as of dates in the valuation calendar year after the valuation date and decreased by distributions made in the valuation calendar year after the valuation date. The Account balance for the valuation calendar year includes any amounts rolled over or transferred to the Plan either in the valuation calendar year or in the distribution calendar year if distributed or transferred in the valuation calendar year. e. Required beginning date. The April 1 of the calendar year following the later of (i) the calendar year in which the employee attains age 70 Yi, or (ii) the calendar year in which the employee retires. ( b I· ! :· ~ PASSED AND ADOPTED at a regular meeting held December 17, 2.00J · ,.., ': ' ( ...J "\ . ,',, ___ :fL_.,,..·'-"-'-~----»~M~ Vice Chair ·' . 1 • .. • -, J '· ,. ....: '.) WS&S-TLW:pj:l0/11/03:#178550 5 '·