HomeMy WebLinkAboutResolutions - R-11-003 - 02/21/2011 - PROVIDE FOR ROTH 457 K AMENDMENT TO DEFERRED COMPRESOLUTION NO. R-11-003
ROTH 457 AMENDMENT
SMALL BUSINESS JOBS ACT OF 2010 ("SBJA")
ARTICLE 1
PREAMBLE
1.1 Adoption and effective date of amendment. This amendment of the Plan is adopted to reflect
amended Code Section 402A, as enacted by the Small Business Jobs Act of 2010 ("SBJA"). This
amendment is intended as a good faith compliance with the requirements of the Act and guidance
issued there under, and shall be interpreted in a manner consistent with such guidance. The
amendment shall be effective as of the date indicated below.
1.2 Employer's Election. As of the effective date, the Employer adopts the provisions as elected under
Article II. These provisions will remain in effect until a document incorporating the provisions of
"SBJA" is adopted or if the provisions become obsolete.
1.3 Supersession of inconsistent provisions. This amendment shall supersede the provisions of the Plan
to the extent those provisions are inconsistent with the provisions of this amendment.
ARTICLE II
ADOPTION AGREEMENT ELECTIONS
2.1 Effective Date. Roth Elective Deferrals are permitted under the Plan as of February 21, 2011.
2.2 Unforeseeable Emergency. A Participant may receive a distribution from their Roth Elective
Deferral account in the event of an unforeseeable emergency.
ARTICLE III
ROTH ELECTIVE DEFERRALS
3.1 Roth Elective Deferrals are permitted. The Plan's definitions and terms shall be amended as
follows to allow for Roth Elective Deferrals as of the effective date entered at 2.1 Roth Elective
Deferrals shall be treated in the same manner as Elective Deferrals for all Plan purposes. The
Employer may, in operation, implement deferral election procedures provided such procedures are
communicated to Participants and permit Participants to modify their elections at least once each
Plan Year.
3.2 Elective Deferrals. For years beginning after January 1, 2011, the term "Elective Deferrals"
includes Pre-tax Elective Deferrals and Roth Elective Deferrals.
3.3 Pre -Tax Elective Deferrals. "Pre -Tax Elective Deferrals" means a Participant's Elective Deferrals,
which are not includible in the Participant's gross income at the time deferred and have been
irrevocably designated as Pre -Tax Elective Deferrals by the Participant his or her deferral election.
A Participant's Pre -Tax Elective Deferrals will be separately accounted for, as will gains and losses
attributable to those Pre -Tax Elective Deferrals.
3.4 Roth Elective Deferrals. "Roth Elective Deferrals" means a Participant's Elective Deferrals that are
includible in the Participant's gross income at the time deferred and has been irrevocably
designated as Roth Elective Deferrals by the Participant in his or her deferral election. A
Participant's Roth Elective Deferrals will be separately accounted for, as will gains and losses
attributable to those Roth Elective Deferrals. The plan must also maintain a record of a
Participant's investment in the contract (i.e., designated Roth contributions that have not been
distributed). Roth Elective Deferrals are not considered Employee Contributions for Plan purposes.
3.5 Ordering Rules for Distributions. The Administrator operationally may implement an ordering rule
procedure for withdrawals from a Participant's accounts attributable to Pre -Tax Elective Deferrals
or Roth Elective Deferrals. Such ordering rules may specify whether the Pre -Tax Elective Deferrals
or Roth Elective Deferrals are distributed first. Furthermore, such procedure may permit the
Participant to elect which type of Elective Deferrals shall be distributed first.
3.6 Corrective distributions attributable to Roth Elective Deferrals. For any Plan Year in which a
Participant may make both Roth Elective Deferrals and Pre -Tax Elective Deferrals, the
Administrator operationally may implement an ordering rule procedure for the distribution of
Excess Deferrals (Code Section 402(g)), and Excess Annual Additions (Code Section 415). Such
ordering rules may specify whether the Pre -Tax Elective Deferrals or Roth Elective Deferrals are
distributed first, to the extent such type of Elective Deferrals was made for the year. Furthermore,
such procedure may permit the Participant to elect which type of Elective Deferrals shall be
distributed first.
3.7 Operational Compliance. The Plan Administrator will administer Roth Elective Deferrals in
accordance with applicable regulations or other binding authority not reflected in this amendment.
Any applicable regulations or other binding authority shall supersede any contrary provisions of this
amendment. Total contributions to the Elective Deferral account will not exceed the annual
deferral limit plus any applicable catch-up provision.
PASSED and APPROVED this 21" day of February, 2011.
VOTING AYE: Santi, Glab, Schaefer, Blake, Winner, Peterson, Condon.
VOTING NAY: None.
ABSENT: None.
NOT VOTING: None.
ABSTAINING: None.
d! �G Mayor
ATTEST:
\n.�)v U i
Ci CleFk
This amendment has, been executed this 21s` day of February, 2011.
Name of Plan: CITY OF MCHENRY 457 PLAN
Security Benefit Plan # 612444
CITY OF MCHENRY
By:Its Mayor
Date signed: February 21, 2011
CERTIFICATE OF RESOLUTION
WHEREAS, the City Clerk for the City of McHenry hereby certifies that Resolution No. R-91-023
was duly adopted by the City Council on September 18, 1991 establishing a deferred compensation program
for employees of the City of McHenry, and that such resolution was modified by Resolution No R-01-015 on
May 30, 2001 providing for the addition of one provider of service to the City's previously adopted deferred
compensation program, and such resolutions have not been modified or rescinded:
RESOLVED, that the Roth 457 Amendment of the 457 Deferred Compensation Plan for the City
of McHenry, effective February 21, 2011, presented at this meeting to the City Council is hereby approved and
adopted and that the proper representatives for the City of McHenry are hereby authorized and directed to
execute and deliver to the Administrator of the Plan one or more counterparts of the amendment.
RESOLVED, that the proper representatives of the Employer shall act as soon as possible to notify
Participants of the Plan of the adoption of this Amendment and of the changes presented at this meeting to the
Board, which form is hereby approved.
The undersigned further certifies that attached hereto is a true copy of the Amendment as approved and
adopted in the foregoing resolution.
Name of Plan:
CITY OF MCHENRY 457 PLAN
Security Benefit Plan # 612444
CITY OF MCH�NRY
By: Its Mayor
Date signed. FEBRUARY 21 .2011
ATTEST:
GAR City Clerk