HomeMy WebLinkAboutbocc.res.137.2008RESOLUTION OF THE BOARD OF COUNTY COMNIISSIOP
OF PTTKIN COUNTY, COLORADO,
AMENDING AND RESTATING 1'HE PITHIN COUNTY
PUBLIC EMPLOYEES' RETIItEMENT PLAN
RESOLUTION NO. ~ 3'7 -2008
RECITALS
1. Pitkin County (hereinafter the "County") entered into and executed the Pitkin County Public
Employees' Retirement Plan (hereinafter the "Plan"), effective January 1, 1983.
2. Section 10.4 ofthe Plan provides in part as follows:
"At any time the County may amend this plan and trust by action of the [Retirement] Board
with the approval of the County Boazd of Commissioners ..."
3. The County now desires to amend the Plan to comply with statutory and regulatory changes
since it last amended the Plan.
NOW, THEREFORE, BE IT RESOLVED by the Boazd of County Commissioners of Pitkin
County, Colorado, that the County hereby amends the Plan by adoption of the attached restated
Pitkin County Public Employees' Retirement Plan, as amended effective January 1, 2008.
INTRODUCED, READ, AND ADOPTED ON DECEMBER 17, 2008.
BOARD OF COUNTY CONIMISSIONERS
OF PTTHIN COUNTY, COLORADO
By: ~~
Jac atf eld, Chair an
Date: /~'/~-0~
MANAGER APPROVAL:
~~,
Hilary FI~tc4er, County Manager
APPROVED AS TO FORM:
PITHIN COUNTY PUBLIC
EMPLOYEES' RETIREMENT PLAN
AS AMENDED EFFECTIVE JANUARY 1, 2008
TAX15364312
t
TABLE OF CONTENTS
ARTICLE 1 NAME AND PURPOSE OF PLAN AND TRUST
ARTICLE 2 DEFINITIONS....
ARTICLE 3 PARTICIPATION ................................
3.1. WHO MAY BECOME A PARTICIPANT
3.2. EFFECT OF A BREAK IN SERVICE.......
.......................................... 1
.......................................... 4
.......................................... 4
.......................................... 4
ARTICLE 4 CONTRIBUTIONS ................................................................................
4.1. DETERMINATION OF CONTRIBUTION BY THE COUNTY ...............
4.2. DETERMINATION OF PARTICIPANTS TO SHARE IN COUNTY
CONTRIBUTION .........................................................................................
4.3. ROLLOVER CONTRIBUTIONS ................................................................
4.4. LIMITATION ON ANNUAL ADDTI'IONS ................................................
4.5. RETURN OF COUNTY CONTRIBUTIONS .............................................
4.6. COUNTY'S OBLIGATIONS ......................................................................
........... 4
........... 4
........... 4
........... 4
........... 4
........... 7
........... 7
ARTICLE 5 DETERMINATION AND VESTING OF PARTICIPANTS' ACCOUNTS ........ 7
5.1. DETERMINATION OF PARTICIPANTS' ACCOUNTS ................................... ....... 7
5.2. VESTING OF PARTICIPANTS' ACCOUNTS ................................................... ....... 8
53. FULL VESTING UPON TERMINATION OF PLAN ......................................... ....... 9
5.4. SERVICE INCLUDED IN DETERMINATION OF VESTED ACCOUNTS ..... ....... 9
5.5. EFFECT OF BREAK IN SERVICE ON VESTING ............................................. ....... 9
ARTICLE 6 RETIREMENT DATE--DESIGNATION OF BENEFICIARY ............................ 9
6.1. RETIItEMENT DATE .................................................................................................. 9
6.2. DESIGNATION OF BENEFICIARY ........................................................................ 10
6.3. PARTICIPANT OR BENEFICIARY WHOSE WHEREABOUTS ARE UNKNOWN
..................................................................................................................................... ] 0
ARTICLE 7 DISTRIBUTION FROM TRUST FUND ....................................................... ...... 11
7.1. WHEN ACCOUNTS BECOME DISTRIBUTABLE AND EFFECT OF
DISTRIBUTION ................................................................................................... ...... 11
7.2. DISTRIBUTION OF ACCOUNTS ...................................................................... ...... 11
7.3. MINIMUM DISTRIBUTIONS ............................................................................ ...... 13
7.4. DISPOSITION OF FORFEITABLE ACCOUNT ON TERMINATION OF
EMPLOYMENT ................................................................................................... ...... 18
7.5. ASSIGNMENT OF BENEFTI'S ........................................................................... ...... 18
7.6. LOANS TO PARTICIPANTS .............................................................................. ...... 19
7.7. QUALIFIED DOMESTIC RELATIONS ORDERS ............................................ ...... 19
ARTICLE 8 ADMINISTRATION ...................................................................................... ...... 21
8. l. APPOINTMENT OF BOARD ............................................................................. ...... 21
8.2. ORGANIZATION AND OPERATION OF BOARD .......................................... ...... 22
TAX\536431.2
8.3. INFORMATION TO BE MADE AVAILABLE TO BOARD .............................. .... 22
8.4. GENERAL DUTIES AND POWERS OF BOARD ............................................... .... 22
8.5. EMPLOYMENT OF ADVISERS AND PERSONS TO CARRY OUT
RESPONSiBILITIES ............................................................................................. .... 22
8.6. KEEPING OF RECORDS ...................................................................................... .... 22
8.7. COMPENSATION AND EXPENSES ................................................................... .... 23
8.8. CLAIMS PROCEDURE ......................................................................................... .... 23
ARTICLE 9 POWERS AND DUTIES OF THE TRUSTEE ................................................ .... 24
9.1. INVESTMENT OF TRUST N'[JND ....................................................................... .... 24
9.2. ADMINISTRATNE POWERS OF THE TRUSTEE ............................................ .... 25
9.3. ADVICE OF COUNSEL ........................................................................................ .... 26
9.4. RECORDS AND ACCOUNTS OF THE TRUSTEE ............................................ .... 26
9.5. APPOIIV'TMENT, RESIGNATION, REMOVAL AND SUBSTTI'UTION OF
TRUSTEE ............................................................................................................... .... 27
9.6. APPOINTMENT OF TRUSTEE--ACCEPTANCE IN WRITING ....................... .... 27
9.7. INVESTMENT MANAGER .................................................................................. .... 27
ARTICLE 10 CONTTNUANCE, TERMINATION, AND AMENDMENT OF PLAN AND
TRUST .............................................................................................................. 28
10.1. TERMINATTON OF PLAN AND TRUST ................................................................ 28
] 0.2. MERGER, CONSOLIDATION, OR TRANSFER OF ASSETS OR LIABILITIES
OF THE PLAN ........................................................................................................... 28
]03. DISTRI$UTTON UPON TERMINATION OF TRUST ............................................ 28
10.4. AMENDMENTS TO PLAN AND TRUST ............................................................... 29
ARTICLE 11 MISCELLANEOUS
11.1. ,
I 1.2.
113.
11.4.
11.5.
I 1.6.
............................................................................
BENEFITS TO BE PROVIDED SOLELY FROM THE TRUST FUND .,..
NOTICES FROM PARTICIPANTS TO BE FILED WTI'H BOARD..........
TEXT TO CONTROL ...................................................................................
SEVERABILiTY ...........................................................................................
JURISDICTION ............................................................................................
PLAN FOR EXCLUSNE BENEFIT OF PARTICIPANTS: REVERSION
PROHIB TI'ED ................................................................................................
.......... 29
.,........ 29
.......... 29
,......... 29
......... 29
......... 29
29
TAX1536431.2
ARTICLE i '
NAME AND PURPOSE OF PLAN AND TRUST
The County, by execution of this agreement, amends and restates a qualified money purchase
plan and trust, to be known as ttte Pitkin County Public Employees' Retirement Plan to provide
retirement benefits for its employees. The plan and trust fund are created for the exclusive
beneFit of employee-participants and their beneficiaries. The plan is intended to qualify under
Section 401(a) of the Code, and the trust created under the plan is intended to be exempt under
Section 501(a) of the Code.
ARTICLE 2
DEFINTI'IONS
When used herein, the following words shall have the following meanings, unless the context
clearly indicates otherwise:
2.1 "Account," unless otherwise indicated, means a participant's entire interest in the trust
fund created by the County's contributions and the income, expenses, gains, and losses
attributable to such contributions.
2.2 `Beneficiazy" means the person who, under this Plan, becomes entitled to receive a
PaRicipant's Account upon his death.
2.3 "Break in Service" for purposes of vesting means a period of severance of 45 days or
longer.
2.4 `Board" means the Pitkin County Public Employees' Retirement Board.
2.5 "Code" means the Intemal Revenue Code of 1986, as it presently is constituted, as it may
be amended, or any successor statute of similaz purpose.
2.6 "Compensation" means the total of all salaries, wages, overtime, bonuses, and other
similar compensation paid to a PaRicipant by the County for personal services rendered during
the year.
Effective for Plan Years beginning before January 1, 1996, and on or after January 1,
2002, the annual Compensation of each Participant taken into account under the Plan for any
year shall not exceed $20Q000, as adjusted for cost-of-living increases in accordance with
Section 401(a)(17)(B) of the Code (cunently $230,000 in 2008). For Plan Years beginning on or
after January 1, 1996, and before Januazy 1, 2002, the annual Compensation of each Emp(oyee
taken into account under the Plan did not exceed $150,000, as adjusted by the Secretary for
increases in the cost of living in accordance with Section 401(a)(17)(B) of the Code. For any
Participant who became a Participant on or before December 31, 1995, the maximum annual
Compensation will be the adjusted annual Compensation amount allowed to be take~ into
account under the Plan as of July I, 1993, which shall not be less than $235,840, and shall be
1
TAX1536431.2
adjusted by the Secretary of the Treasury for increases in cost of living in accordance with
Secuon 401(a)(17)(B) of the Code (currently $345,000 in 2008).
Annua] Compensation means compensation during the Plan Yeaz or such other
consecutive IZ-month period over which Compensation is otherwise determined (the
determination period). The cost-of-living adjustment in effect for a calendaz yeaz applies to any
period, not exceeding 12 months, over which Compensation is determined that begins in the
calendar year. If a detetmination period consists of fewer than 12 months, the annual
Compensation ]imit will be multiplied by a fraction, the numerator of which is the number of
months in the determination period, and the denominator of which is IZ.
2.7 "County" means Pitkin County, Colorado, a political subdivision of the State of
Colorado.
2.8 "Effective Date" of this Plan means January 1, 1983. "Effective Date" of this r~;stated
plan means January 1, 2008, except as otherwise expressly provided in this Plan or under the
requirements of law.
2.9 "Employee" means any person now or hereafter in the employ of the County, including
elected officials of the County, but excluding part-time and seasonal employees, independen[
contractors and leased employees.
For pucposes of the Plan and this Section 2.9, "part-time employee" means any person
whose customary employment is for not more than 20 hours in any one week. "Seasonal
employee" means any person whose customary employment is for not more than five months in
any calendar year. "I.eased employee" means for Plan Years beginning afrer December 31,
1996, any person (other than an Employee of the County) who has performed services for the
County (ot for the County and related persons as determined under Section 414(n)(6) of the
Code) under an agreement between the County and the leasing organization on a substantially
full-time basis for a period of at least one year and the services are performed under the primary
direction or control of the County. Any leased employee will be treated as an employee of the
County for purposes of this Plan and any contributions or benefits provided by the leasing
organizations that are attributable to the services performed for the County will be treated as
provided under a plan maintained by the County, provided, however, that a leased employee will
not be treated as employed by the County if the leased employee is covered by a money purchase
pension plan maintained by the leasing organization that provides [a] a nonintegrated employer
contribution oF at least 10% of compensation, as deFined in Section 415(c)(3) of the Code,
including amounts contributed pursuant to a salary reduction agreement that are excludable from
the employee's gross income under Sections ]25, 132(fl(4), 402(e)(3), 402(h)(1)(B) or 403(b) of
the Code; [b] immediate participation (unless the individual has had compensation of less than
$1,000 in each of the preceding four plan years ending with the current Plan Year); and [c] full
and immediate vesting. In addition, leased employees may not constitute more than 20 percent
of the County's non-highly compensated employees.
2.10 "Norma] Retirement Date" means the earlier of: (i) the date a Participant attains age 65,
provided, however, that for a Participant who becomes a PaRicipant after attaining age 6Q
TAX~53fi431.2
"Normal Retirement Date" means the date such Participant has completed a five-year Period of
Service; or (ii) the date a Participant becomes 100% vested in his account pursuant to Section
5.2[b].
2.11 "Participant" means any Employee who has become a Participant under this Plan.
Participation shall cease upon distribution of a Participant's entire vested Account and forfeiture
of a Participant's entire nonvested Account after (or if a Participant has no vested Account then
upon) termination of employment because of retirement, death, total disability, or termination of
employment for any other reason.
2.12 "Period of Service" means a period beginning on the date a Participant's employment or
reemployment by the County as an Employee commences and ending on the date a Period of
Severance begins. Such term shall also include any Period of Service performed by such
Employee for any other govemment entity participating in a reciprocal or cooperating
arrangement with the County whereby County employees would be credited with service under
such govemment entity's retirement program. Effective for reinstatement of employment
initiated afrer December 12, 1994, notwithstanding any provision of this Plan to the contrary,
contributions, benefits and service credit with respect to QualiFied Military Service will be
provided in accordance with Code Section 414(u).
2.13 "Period of Severance" means a period beginning on the date a Participant's employment
as an Employee terminates for any reason and ending on the date the ParticipanYs reemployment
as an Employee commences.
2.14 "Plan" and "Plan and Trust" mean the money purchase plan and 7ust set forth in and by
this document and all subsequent amendments to it.
2.15 "Plan Year" means the calendar yeaz and this shall be the fiscal year of the trust
established under this Plan.
2.16 "Qualified Military Service" means any service in the uniformed services (as defined in
Chapter 43 of Title 38, United States Code) by an individual if such individual is entitled to
reemployment rights under such chapter with respect to such service.
2.17 "Total Disability° means a Participant's inability as a result of sickness, accidental bodily
injury, or similar circumstances to work at such Participant's job for a period in excess of six
months. Such inability shall be determined by the County Manager after consultation with
appropriate medical sources.
2.18 "Trustee" means the person or persons appointed by the Board as the 7ustee of the trust
fund established by this Plan and Trust and any duly appointed and qualified successor trustee.
2.19 "Trust Fund" means the assets of the trust established by this Plan and Trust from which
the benefits under this Plan shall be paid and shall include all income of any nature eamed by the
fund and all changes in fair market value.
2.20 The masculine gender shall include the feminine, and the singular shall include the plural.
3
TAX15364311
ARTICLE 3
PARTICIPATION
3.L WHO MAY BECOME A PARTICIPANT': As of the Effective Date of this Amended
and Restated Plan, all Employees of the County who have completed a Period of Service oF six
months or longer shall be enrolled as Participants of this Plan. Any new Employee of the County
shall be enrolled as a Participant of this Plan as of the first day of the pay period during which he
has completed a Period of 5ervice of six months.
3.2. EFFECT OF A BREAK IN SERVICE: For purposes of determining eligibility to
participate, service before a$reak in Service shall not be counted.
ARTICLE 4
CONTRTBUTIONS
4.1. DETERMIIVATION OF CONTRIBUTION BY THE COUNTY: The County shall make
contributions to the Trust Fund for calendar year 1983 for each Participant equal to 12.26% of
each Participant's compensation for such yeaz. Thereafter, the County shall make contributions
for each year for each Participant equal to 14% ]ess a percentage amount deteanined as follows:
estimated total cost of premiums for life insurance, accidenta] death and dismemberment,
survivor and disability coverage divided by estimated tota] compensation of a]! Participants for
such yeac Any forfeitures caused by termination of employment that are in excess of plan
expenses shall be applied to reduce County contributions. The County shall make payment of its
contribuuons within 10 days after the end of each month. The County's contribution for any
Plan Year shall be paid to the Trustee and shall become a part of the Trust Pund. Such
contribution shall be made in cash.
4.2. DETERMINATION OF PARTICIl'ANTS TO SHARE IN COUNTY CONTRIBUTION:
A Participant wil] be entitled to his share in the con[ribution of the County for any Plan Year.
4.3. ROLLOVER CONTRIBUTIONS: The Plan may, afrer publication of rollover
contribution procedures by the Board, accept participant rollover contributions and/or direct
rollovers of distributions made afrer December 31, 2001, from a q~alified plan described in
Sections 401(a) or 403(a) of the Code; an annuity contract described in Section 403{b) of the
Code; or an eligible plan under Section 457(b) of the Code which is maintained by a state,
political subdivision of a state, or any agency or instrumentality of a state or political subdivision
of a state; and may, afrer publication of rollover contribution procedures by the BoaYd, accept a
participant rollover contribution of the portion of a distribution from an individual retirement
account or annuity described in Sections 408(a) or 408(b) of the Code that is eligible to be rolled
over and would otherwise be includible in gross income.
4.4. LIMTTATION ON ANNUAL ADDTfIONS:
[a] Definitions: For purposes of this Section 4.4, the following terms will be defined as
follows:
4
TAX~536431.2
[1] "Annual addition" means the sum of the County contributions and forfeitures
allocated to a ParticipanYs Account during any limitation yeaz. Annual additions
will not include [A] catch-up contributions made in accordance with Section
414(v) of the Code; [B] a restorative payment (as defined in Section 1.415(c)-
1(b)(2)(ii)(C) of the Treasury Regulations); [C] excess deferrals that are
distributed in accordance with Section 1.402(g)-1(e)(2) or (3) of the Treasury
Regulations; [D] rollover contributions described in Sections 402(c)(1), 403(a)(4),
403(b)(8), 408(d)(3) and 457(e)(16) of the Code; [E] a direct transfer of a benefit
or employee contributions from a qualified plan to this plan; [D] repayments of
loans made to a Participant from the Plan; [E] repayments of contributions to a
govemment pian (as described in Section 415(k)(3) of the Code), as well as
employer restoration of benefits that are required pursuant to the repayments; and
[F] Employee conuibutions to a qualified cost of living arrangement within the
meaning of Section 415(k)(2)(B) of the Code. Any excess amount used to reduce
County contributions under this Section will be treated as annual additions for
such limitation year.
[2] "Compensation" for purposes of limiting annual additions and combined benefits
and contributions under this Section, means a ParticipanYs eamed income, wages,
salaries, fees for professional service and other amounts received for personal
services actually rendered in the course of employment with the County
(including, but not limited to, commissions paid salesmen, compensation for
services on the basis of a percentage of profits, commissions on insurance
premiums, tips, and bonuses) and excluding the following:
[A] County contributions to a plan of deferred compensa[ion to the extent
contributions are not included in gross income of the Employee for the
taxable yeaz in which contributed;
[B] County confributions on behalf of an Employee to a Simplified Employee
Pension Plan to the extent such contributions are deductible under Section
219(b)(7) of the Code;
[C] any distributio~s from a plan of deferred compensation whether or not
includable in the gross income of the Employee when distributed; or
[D] other amoun[s which receive special tax benefits, or contributions made by
the County (whether or not under a salary reduction agreement) towazds
the purchase of a 403(b) annuity contract (whether or not the contributions
are excludable from the gross income of the employee).
For purposes of this Section 4.4, compensation for a limitation year includes only
the compensation that is actually paid to the Participant during the limi[ation year
and compensation that is includable in the ParticipanYs gross income during the
limitation year. "Compensation" for purposes of this paragraph shall include
Participant salary defenal contributions described in Section 402(g)(3) of the
5
TAX~5364311
Code, any amounts which are not included in the ParticipanYs gross income by
reason of Sections 125 (cafeteria plans) and 457 (deferrals to govemmental plans)
of the Code, anQ, for Limitation Years beginning after January 1, 2001, elecuve
amounts that are not includable in the gross income of the Participant by reason of
Section 132(fl(4). Deemed Section 1Z5 compensation (within the meaning of
Section 1,415{c)-2(g)(6)(ii) of the Treasury Regulations) wil] not be counted for
purposes of determining amounts not included in the ParticipanYs gross income
by reason of Section 125 of the Code). For limitation yeazs beginning on or after
January 1, 2005, payments made within two-and-one-half months after a
ParticipanYs severance from employment (within the meaning of Section
401(k)(2)(B)(i)(I) of the Code) will constitute compensation under this paragraph
iF such payments would have been paid to the Participant prior to and absent his
or her severance from employment and if such payments represent:
[I] remuneration for services performed by the Participant during the ParticipanY s
regular working hours; [II] remuneration for services performed by the
Participant outside the Participant's regalar working hours; [III] commissions;
[IV] bonuses or similaz remuneration; and [V] accrued bona fide sick, vacation, or
other leave, but only if the Participant would have been able to use the leave if he
or she had conunued employment. Payments not described above in jI] through
[V] of the preceding sentence do not constitute "Compensation" under this
paragraph even if paid within two-and-one-half months following a ParticipanYs
severance from employment except for payments to an individual not currently
perForming services for the County by reason of Qualified Military Service to the
extent such payments do not exceed the amounts the individua] would have
received if the individual had continued to perform services for the County in lieu
of entering Qualified Military Service.
(3] "Limitation year" means the Plan Yeaz.
[b] Limitaqon on Annual Addition: If the annual addition [o the account of any Participant
attributable to a11 defined contribution plans (including money purchase pension plans,
and profit-sharing plans, of the County), would exceed the lesser of
[1] For limitation yeazs beginning before January ], 2002, the lesser of: [A] the
greater of $30,000 (as adjusted for cost of living increases by the Secretary of the
Treasury as of each Januazy I for any limitation yeaz ending during such catendar
year), or [B] 25% of such ParticipanYs compensation; or
[2] For Limitation Years beginning after December 31, 2001, notwithstanding catch-
up contribuuons permitted under Secpon 414(v) of the Code, the lesser of
[A] $40,000, as adjusted cost of living increases under Section 415(d) of the
Code, or [B] 100%o of such Participant's compensation (except that the limit
referred to in this [b](2][B] shall not apply to any contribution for medical
benefits afrer a ParticipanYs separation from service within the meaning of
Sections 401(h) or 419A(fl(2) of the Code which otherwise would be treated as an
annua] addition), then the excess amount will be disposed of in accordance with
6
TAX\536431.2
the Employee Plans Compliance Resolution System, as set focth in Revenue
Procedure 2006-27, or any superseding guidance, including, but not limited to, the
preamble of the final regulations issued under Section 415 of the Code.
4.5. RETURN OF COUNTY CONTRIBUTIONS: A contribution by the County to the Plan
shall be retumed to the County, at the County's discretion, under any of the following
circumstances:
[a] If a contribution is made by the County by a mistake of fact, including a mistaken excess
contribution, within one year of its payment to the Plan; or
[b] If qualification of the Plan is denied, within one year after the date of denial of
qualification of the Plan.
The County shall state by written request to the Trustee the amount of the contribution to be
retumed and the reason for such retum. Such amount shall not include any earnings attributable
to the contribution and shall be reduced by any losses attributable to the contribution. Upon
sending such request to the Trustee, the County simultaneously shall send to the Board a copy of
the request. The Trustee shall retum such contribution to the County immediately upon receipt
of the written request by the County. All contributions by the County to the Plan are declared to
be condiuoned upon the qualification of the Plan under Section 401 of the Code.
4.6. COUNTY'S OBLIGATIONS: The adoption and continuance of the Plan shall not be
deemed to constitute a contract between the County and any Employee or Participant, nor to be a
consideration for, or inducement or condition of, the employment of any person. Nothing in this
Plan shall be deemed to give any Employee or Participant the right to be retained in the employ
of the County, or to interfere with the right of the County to dischazge any Employee at any time,
nor shall it be deemed to give the County the right to require [he Employee to remain in its
employ, nor shall it interfere with the right of any Employee to terminate his employment at any
time.
ARTICLE 5
DETERMINATION AND VESTING OF
PARTICIPANTS' ACCOUNTS
5.1. DETERMINATION OF PARTICIPANTS' ACCOUNTS:
[a] Particioants' Accounts: The Board shall maintain an Account for each Participant
showing the dollar value of his current Account in the Trust Fund, as of each valuation
date, attributable to any contributions made by the County and posted to the Participant's
Account and net eamings on such contributions. The Board shall distribute, or cause to
be distributed, to each Participant at least annually a written statement setting forth the
current value of such Participant's Account and such other information as the Board shall
determine.
TAX~536431.2
[b) Valuation:
[1] Valuation Dates: The valuation dates of tha Trust Fund shall be each business
day of the Plan Year.
[2] Valuation of Participant Accounts: As of each Valuation Da[e net eamings,
losses, and changes in the fair market value of each separate investment fund available
under the Plan will be compu[ed and allocated on an investment fund basis to the
Participants in the ratio that the tota] dollar value of the interest (whether or not vested) of
each Participant in each investment fund, including the por[ions resutting from posted
contributions, bears to the aggregate dollaz value of all such Participants in each
investment fund as of the last previous valuation date,
[c] Allocation of County Contributions and Forfeitures: At least annually as of the last day in
each Plan Yeaz, and more frequently as the Board may determine, the Board shall
allocate to the Accounts of Participants any amounts contributed by the County to the
Trust Fund for the period then ended in the manner provided in Section 4.1. Forfeitures
used to reduce County contributions shal] be allocated along with County contributions.
[d] Suspense Account for Unallocated Forfeitures: In the event that the amount of forfeitures
used to reduce the County's contributions and to be allocated to any Participant's
Account would exceed the annual addiUOn limitations, a sepazate suspense account shall
be established to hold such unallocated forfeitures for any year or years provided that:
[1] no County contributions may be made at any time when their allocation would be
precluded by Secaon 415 of the Code;
[2] investme~t gains and losses and other income are not a]]ocated to the suspense
account; and
[3] the amounts in the suspense account are allocated under Section 5.1[c] as of each
al]ocation date on which forfeitures may be allocated until the suspense account is
exhausted.
In the event of Plan ternunation, the balance of such suspense account may reveR to the County.
5.2. VESTING OF PARTICIPANTS' ACCOUNTS:
[a] General Rules: If any Participant reaches his Normal Retirement Date, dies, or suffers
total disability while employed by the County, his entire Account shall become fully
vested without regard to the length of the Period of Service such Participant has had with
the County. Any Account, whether vested or forfeitable, shal] become payable to a
PaRicipant or his beneficiaries only to the extent provided in this Plan. A Participant who
has designated a beneficiary and who dies shall cease to have any interest in this Plan or
in his Account, and his beneficiary shall become entitied to distribution of the
Participant's Account under this Plan and not as a result of any transfer of [he interest or
Account.
TAX153643L2
[b] Vestine Schedule: Except as provided in Section 3.2 a Participant shall be vested in the
portion of his Account attributable to County contributions in accordance with the
following schedule:
Period of Service
I.ess than 6 months
6 months or more liut less
than 1 year
1 year or more but less
than 2 years
2 years or more but less
than 3 yeazs
3 years or more but less
than 4 years
4 years or more but less
than 5 yeazs
5 yeazs or more
Percentage of Account
Which is Vested
0
50%
60%
70%
80%
90%
100%
[c] Limitations on Vestine: Any amount returned to the County under Section 4.4 shall not
be considered a forfeiture in violation of this Section 5.2 even if a resulting adjugttnent is
made to a Participant's Account that is partly or entirely vested.
5.3. FULL VESTING UPON TERMINATION OF PLAN: Upon the termination or partial
termination of this Plan, the Accounts of all Par[icipants affected, as of the date such termination
or partial terminalion occurred, shall be fully vested. The temporary suspension of County
contributions shall not constitute a termination or partial termination of this Plan and shall not
require full vesting.
5.4. SERVICE INCLUDED IN DETERMINATION OF VESTED ACCOUNTS: All Periods
of Service with the County shall be included for purposes of defermining a Participant's vested
Account under Section 5.2, except any Periods of Service excluded by reason of a break in
service under Section 5.5.
5.5. EFFECT OF BREAK IN SERVICE ON VESTING: With respect to a Participant's
Account attributable to County contributions made after any Break in Service, the percentage
fltat is vested shall be computed without regard to any Period of Service before the Break in
Service.
ARTICLE 6
RETIREMENT DATE--DESIGNATION OF BENEFICIARY
6.1. RETIREMENT DATE: The Normal Retirement Date for each Participant shall be the
earlier of (i) the attainment of age sixty-five (65), provided, however, that the Normal Retirement
TAX\536431.2
Date for each Participant who becomes a Participant at an age above sixty (60) years shall be the
date coinciding with the date that such PaRicipant has completed a five-year Period of Service;
or (ii) the date a Participant becomes 100%o vested in his account pursuant to Section 5.2[b].
Any Participant may retire on or after his Normal Retirement Date. The reurement of any
Participant may be deferred, and during such deferment such Participant shall continue in full
participation in the Plan and Trust Fund.
6.2. DESIGNATION OF BENEFICIARY: Each Participant shall designate a beneficiary to
receive his Account in the Trust Fund upon his death on the form prescribed by and delivered to
tl~e Board. The Participant shall have the right to change or revoke a designation at any time by
filing a new designation or notice of revocation with the Board. No notice to any beneficiary nor
consent by any beneficiary shall be required to effect any change of designation or revocation. If
a Participant fails to designate a beneficiary before his death, or if no designated beneficiary
survives the Participant, the Boazd shall direct the Trustee to pay his Account in the Trust Fund
first to his surviving spouse, if any, next to his descendants by right of representation, if any, or if
none, then to his personal representative. If no personz] representative has been appointed, if
actual notice of such is given to the Board within 60 days after the ParticipanYs death, and if his
Account does not exceed the minimum amount for which any applicabte ta~c release is required,
or for which a personal representative must be appointed under app]icable state law, the Board
may direct the Trustee to pay his Account to such person as may be entitled to it under the laws
of the state where such Participant was domiciled at the date of his death. In such case, the
Board may require such proof of right or identity from such person as the Board may deem
necessary. If his Account exceeds the minimum amount for which any applicable tax release is
required, or for which a personal repiesentative must be appointed under applicable state ]aw, the
Board may direct the Trustee to establish a custodial account for such Participant in a federally
insured bank for purposes of holding such ParticipanYs Account until such time as the Trustee is
notified tha[ a persona] representative has been appointed. For purposes of this Section 6.2,
representation means division of a ParticipanYs Account into as many shares as thare are, at the
date on which the Account becomes distributable, surviving descendants in the neazest degree of
kinship and deceased descendants in the same degree who left descendants who survive such
deceased descendants, each surviving descendant in the neazest degrae receiving one share and
the share of each deceased descendant in the same degree being divided among his descendants
in the same manner. '
6.3. PARTICIPANT OR BENEFICIARY WHOSE WHEREABOUTS ARE LTNKNOWN: In
the case of any Participant or beneficiary whose whereabouts are unknown, the Board shall
norify such Participant or beneficiary at his last known address by certified mail with retum
receipt requested advising him of his right to a pending distribution. If the Participant or
beneficiary cannot be located in this manner, the Board shall direct the Trustee to forfeit the
Account and apply the forfeited amount to reduce County contributions in accordance with
Section 4.1. If a claim for forfeited banefits is subsequently made by the Par[icipant or
beneficiary, the amount forfeited, unadjusted for eamings or interest, shall be restored by means
of a County contribution.
10
TAX~536431.2
ARTICLE 7
DISTRIBUTION FROM TRUST FUND
7.1. WHEN ACCOUNTS BECOME DISTRIBUTABLE AND EFFECT OF
DISTRIBUTION: If a Participant terminates employment for any reason, his vested Account
shall be distributable under Section 7.2. When his Account becomes distributable, such
Participant shal] cease to have any further interest or participation in the Trust Fund or any
subsequent accruals or contributions to ihe Trust Fund except the right to receive distribution of
the value of his Account.
7.2. DISTRIBUTION OF ACCOUNTS:
[a] Distribution Uoon Retirement, Death Total Disability or Termination of Emolovment
If a Participant's Account becomes distributable upon his termination of employment
with the County because of retirement, death, total disability or temunation of
employment for any reason, the Trustee shall pay to him the value of his vested Account
as detemuned under Section 51[b] as of the Valuation Date coincident with or next
preceding the date of distribuuon. The distribution shall be made not later than [1] 180
days afrer the Participant's termination of employment or [2] 90 days afrer the date the
determination letter is issued by the Internal Revenue Service with respect to Amendment
Number Three to the Plan, whichever is later. Distribution must be made not later than
April 1 of the calendar year following the calendar year during which the Participant
attains age 70~/x or actually retires, whichever is later. If a Participant's Account becomes
distributable because of his death, or if a Participant dies before his entire Account
balance has been distributed, his beneficiary shall receive in one single sum cash
payment, no later than 180 days afrer the Participant's death, an amount equal to the
remaining value of the Pazticipant's vested Account as of the Valuation Date coincident
with or next preceding the dis[ribution.
[b] Elieible Rollover Distributions
[1] General Rule: Notwithstanding any provision of the Plan to the contrary that
otherwise would limit a Participant's distribution election under this Article, a
Participant may elect, at the time and in the manner prescribed by the Boazd, to
have any portion in an eligible rollover distribution paid direcdy to an eligible
retirement plan specified by the Participant in a direct rollover.
[2] Definitions:Eligible rollover distribution: An eligible rollover distribution is any
distribution of all or any portion of the balance to the credit of the
Participant, except that an eligible rollover distribution does not include
[i] any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or life
expectancy) of the distributee or the joint lives (or joint life expectancies)
of the distributee and the distributee's designated beneficiary, or for a
specified period of ten years or more; [ii] any distribution to the extent
11
TAX1536431.2
such distribution is required under Section 401(a)(9) of the Code; [iii~ the
portion of any distribution that is not includable in gross income
(detemuned without regard to the exclusion for net uniealized
appreciation with respect to amployer securities); and (iv] any distribution
that is made upon the hardship of the Employee. A portion of a
distribution shall not fai] to be an eligible rollover distribution merely
because tha portion consists of after-tax employee contributions which are
not incladible in gross income. However, such portion may be transferred
only to an individual retirement account or annuity described in Sections
408(a) or 408(b) of the Code, or to a qualified defined contribution plan
described in Sections 40](a) or 403{a) of the Code that agrees to
separately account for amounts so transferred, including separately
accounting for the poRion of such distribution which is includible in gross
income and the portion of such distribution which is not so includible.
[B) Eligible retirement plan: An eligible retirement plan is an individual
retirement account described in Section 408(a) of the Code, an individual
retirement annuity described in Section 408(b) of the Code, an annuity
plan described in Section 403(a) of the Code, an annuity contract
described in Section 403(b) of the Code, a qualified trust described in
Section 401(a) of the Code, that accepts the distributee's eligible rollover
distribution, or an eligible deferred compensation plan described in
Section 457(b) of the Code which is maintained by an eligible employer
described in Section 457(e){])(A) of the Code and which agrees to
separately account for amounts transferred into such plan from this plan.
In the case of an eligible roltover distribution to a surviving spouse, an
eligible retirement plan has the same definition as above.
[C] Distributee: A distributee includes an Employee or former Employee. In
addition, the Employee's or former Employee's surviving spouse and the
Employee's or former Employee's spouse or former spouse who is the
altemate payee under a qualified domestic relations order, as defined in
Section 414(p) of the Code, are distributees with regard to the interest of
the spouse or former spouse. Solely with respect to an. eligible retirement
plan which is an individual retirement account described in Section 408(a)
of the Code or an individual retirement annuity described in Section
408(b) of the Code, effective January 1, 2007, a distributee also will
include the ParticipanY s non-spouse Beneficiary.
[D] Direct rollover: A direct rollover is a payment by the Plan to the eligible
retirement plan specified by the distribute.
[3] Procedures: The Board may establish procedures for the distribution of eligible
rollover distributions, including any ]imitations on the amount eligible for a
rollover distribution, to Yhe extent permitted by law.
12
TAX15364311
[c] Mandatorv Distributions: In the event of a mandatory distribution greater than $1,000 in
accordance with the provisions of Section 7.2[a], if the PaRicipant does not elect to have
such distribution paid directly to an eligible retirement plan specified by the Participant in
a direct rollover or to receive the distribution directly in accordance with Section 7.2,
then the Plan Administrator will pay the distribution in a direct rollover to an individual
retirement plan designated by the Plan Administrator.
7.3. MINIMUM DISTRIBUTIONS: Notwithstanding any other provisions of this Article, the
following distribution rules will apply:
[a] General Rules:
[1] The Plan will apply the minimum distribuuon requirements of Section 401(a)(9)
of the Code in accordance with the regulations under Section 401(a)(9) of the
Code and the minimum distribution incidental benefit requirement of Section
401(a)(9)(G) of the Code.
[2] Limits on Distribution Periods. As of the first distribution calendar year,
distributions to a Participant, if not made in a single sum, may only be made over
one of the following periods:
[A] the life of the Participant;
[B] the joint lives of the Participant and a designated Beneficiary;
[C] a period ceRain not extending beyond the life expectancy of the
Participant; or
[D] a pedod certain not extending beyond the joint life and last survivor
expectancy of the Participant and a designated Beneficiazy.
[b] Time and Manner of Distribution:
[1] 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.
[2] Death of Participant Before Distributions Begin: If the Participant dies before
distributions begin, the Participant's entire Account will be distributed, or begin
to be distributed, no later than as follows:
[A] If the Participant's surviving spouse is the ParticipanYs sole designated
Beneficiuy, then, distributions to the surviving spouse may, but aze not
required to, begin by December 31 of the cale~dar year immediately
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~/z, if later. Alternatively, tlte Participant's entire interest
13
TAX~53643 L2
will be distributed to the designated Beneficiary by December 31 of the
calendar yeaz containing the fifth anniversary of the ParticipanYs death. If
the surviving spouse dies after the Participant, but before distributions to
either the Participant or the surviving spouse begins, this alternative will
apply as if the surviving spouse were the Participant.
[B] Distributions to the designated Beneficiary may, but are not required to,
begin by December 31 of the calendar year immediately following the
calendar year in which the Participant died. Altematively, the
PaRicipanYs entire interest will be distributed to the designated
Beneficiary by December 31 of the calendar yeaz containing the fifth
anniversary of the ParticipanYs death.
~C] If there is no designated Beneficiary as of September 30 of the year
following the year of the ParticipanYs death, the Participant's entire
interest wi11 be distributed by December 31 of the calendar year containing
the fifth anniversary of the ParticipanYs death.
~D] If the ParticipanYs surviving spouse is the ParticipanYs sole designated
Beneficiary and the surviving spouse dies after the Participant but before
distributions to the surviving spouse are required to begin, this Section
7.3[b][2], other than Section 73[b][2~[A], will apply as if the surviving
spouse were the Participant.
For purposes of this Section 7.3[b][2] and Section 73[d], unless Section
73[b][2][D] applies, distributions are considered to begin on the Participant's
required beginning date. If Section 73[b][2][D] applies, distributions are
considered to begin on the date distributions are required to begin to the surviving
spouse under Section 73[b][2][A]. 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 73[b][2)[A] the date distributions are considered to begin is the date
distributions actually commence.
Participants and Beneficiaries may elect on an individua] basis whether the five-
year rule or the life expectancy rule applies to distributions afrer the death of a
Participant who has a designated Beneficiary. The election must be made no later
than the earlier of September 30 of the calendar year in which the distribution
would be required under the life expectancy rule, or by September 30 of the
calendar yeaz that contains the fifth anniversary of the Participant's (or, if
applicable, the surviving spouse's) death. If neither the Participant nor
Beneficiary makes an election, distributions will be made in accordance with the
five-year rule.
14
TAX1536431.2
[3] Forms of Distribution: Unless the Participant's interest is distributed i~ 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 7.3[c] and 7.3[d]. If the
ParticipanYs 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 regulations.
[c] Reauired Minimum Distributions During Particinant's Lifetime:
[1] Amount of Required Minimum Disuibution For Each Distribution Calendar Year:
During the ParticipanYs lifetime, the minimum amount that wili be distributed for
each distdbution calendar year is the lesser of:
[A] [he quotient obtained by dividing the Participant's Account balance by the
distribution period in the Uniform Lifetime Table set forth in Treasury
Regulation Section 1.401(a)(9)-9, Q&A-2, using ttte Participant's age as
of the Participant's birthday in the distribution calendar year; or
[B] if the Participant's sole designated Beneficiary for the distribution
calendar yeaz 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 Treasury Regulation Section 1.401(a)(9)-9,
Q&A-3, using the Participant's and spouse's attained ages as of the
ParticipanYs and spouse's birthdays in the distribution calendar year.
[2) Lifetime Required Minimum Distributions Continue Through Yeaz of
Participant's Death: Required minimum distributions will be determined under
this Section 73[c] beginning with the first distribution calendar year and
continuing up to, and including, the distribution calendar year that includes the
Participant's date of death. Required Minimum Distributions Afrer Particioant's
Death:
[ 1] Death On or Afrer Date Distributions Begin:
[A] Participant Survived by Designated Beneficiazy: If the Participant dies on
or afrer the date distributions begin and there is a designated Beneficiazy,
the minimum amount that will be distributed for each distribution calendaz
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:
[i] The Participant's remaining life expectancy is calculated using the
age of the Participant in the year of death, reduced by one for each
subsequentyear.
15
TAX\53643L2
[ii] 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 yeaz of the Participant's death using the surviving
spouse's age as of the spouse's birthday in that year. For
disfibuAOn calendaz 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 o£ the spouse's death, reduced by one
for each subsequant calendar year.
[iii) If the ParticipanYs surviving spouse is not the ParticipanYs 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 ParticipanYs death, reduced by one
for each subsequent yeaz.
[B] No Designated Beneficiary: If the Participant dies on or after the date
distributions begin and there is no designated Beneficiary as of the
September 30 of the year afrer the year of the ParticipanYs death, the
minimum amount that will be distributed for each distribution calendar
year after the year of the ParticipanYs death is the quotient obtained by
dividing the ParticipanYs Account balance by the PaRicipanYs remaining
life expectancy calculated using the age of the Participant in the year of
death, reduced by one for each subsequent year.
[2] Death Before Date Distributions Begin:
[A] Participant Survived by Designated BeneFiciary: If the Participant dies
before the date distributions begin and there is a designated Beneficiary,
the minimum amouqt that will be disuibuted 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 ParticipanYs designated Beneficiazy, determined as
provided in Section 7.3[d][1]. Altema6vely, the distribution to the
designated Beneficiazy is not required to begin by the date above if the
entire interest is distributed to the designated Beneficiary by the
December 31 of the calendar year containing the fifth anniversary of the
Participant's death. If the Participant's surviving spouse is the
ParticipanYs sole designated Beneficiary, and the surviving spouse dies
after the Participant but before distributions to either the Participant or the
surviving spouse begin, this alternative will apply as of the surviving
spouse were the Participant.
Participants and Beneficiaries may elect on an individual basis whether the
five-year rule or the life expectancy rules applies to distributions after the
l6
TAX~5364312
death of a Participant who has a designated Beneficiary. The election
must be made no later than the earlier of September 30 of the calendar
year in which the distribution would be required under the life expectancy
rule, or by September 30 of the calendar year that contains the fifth
anniversary of tlte ParticipanYs (ot, if applicable, the surviving spouse's)
death. If neither the Participant or Beneficiary makes an election,
distributions will be made in accordance with the five-year rule.
[B] 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 yeaz 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 ParticipanYs death.
[C] Death of Surviving Spouse Before Distributions to Surviving 5pouse Are
Required [o Begin: If the Participant dies before the date distributions
begitt, the Participant's surviving spouse is [he Participant's sole
designated Beneficiary, and the surviving spouse dies before distributions
are required to begin to the surviving spouse under Section 73[b][2][A],
this Section 7.3[d][2] will apply as if the surviving spouse were the
Participant.
[e] Definitions:
[1] Designated Beneficiary: The individual who is designated by the Participant (or
the ParticipanYs surviving spouse) as the Beneficiary of the Participant's Account
under the Plan and who is the designated Beneficiary under Section 401(a)(9) of
the Code and Treasury Regulation Section 1.401(a)(9)-4.
[2] 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 73(b)[2].
The required minimum distribution for the ParticipanPs 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
31 of that distribution calendar year.
[3] Life Expectancy: Life expectancy as computed by use of the single life table in
Treasury Regulation Section 1.401(a)(9)-9, Q&A-1.
17
TAX153643 L2
[4] Participant's Account Balance: The Account balance as of the last valuation date
in the calendar yeaz immediately preceding the distribution calendaz yeaz
(valuation calendar year) increased by the amount of any contributions made and
allocated or forfeitures allocated to the Account 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 distribu[ion calendar year if
distributed or vansferred in the valuation calendar year.
[5] Required Beginning Date: The required beginning date of a Participant is April 1
of the calendar year following the later of the calendar year in which the
Participant attains age 70Ys or the calendar yeaz in which the Participant retires.
[t] TEFRA Section 242(bl(2) Elections:
[1] Notwithstanding the other requirements of this Section 73, distributions may be
made under a designation made before 7anuary 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) of TEFRA.
[g] Transition Rules:
[]] Required minimum distribuuons on or after January I, 2003, were made pursuant
to this Section 73.
[2] Required minimum distributions for calendar year 2002 were made in accordance
with the 2001 Proposed Regulations.
7.4. DISPOSITION OF FORFEITABLE ACCOUNT ON TERMINATION OF
EMPLOYMENT: If a Participant's employment is terminated for any reason other than
retirement, death, or tota] disability, while any part of his Account in the Trust Fund is
forFeitable, then that poRion of his Account which is forfeitable shall be forfeited by him upon
distribution of his vested Account. Any amount forfeited shall remain in the Trust Fund and
shall be applied to the payment of Plan expenses with any excess applied to reduce the County
contributions for the Plan Year in which it is forfeited as provided under Section 4.1. A
Participant who terminates employment with no vested Account will be deemed to have received
a distribution as of the date the Participant termioates employment and the Participant's
nonvested Account will be forfeited as of the date the Participant terminates employment.
7.5. ASSIGNMENT OF BENEFITS: Except for benefits payable in accordance with the
terms of a Qualified Domestic Reladons Order, all amounts payable by the Trustee shal] be paid
only to the person entitled to t6em, and all such payments shall be paid directly to such person
and not to any other person or corporation. Such payments shall not be subject to the claim of
any creditor of a Participant, nor shall such payments be taken in execution by attachment or
garnishment or by any other legal or equitable proceedings. No person shall have any dght to
alienate, anticipate, commute, pledge, enwmber, or assign any payments or bene£its that he may
]8
TAX~536431.2
expect to receive, contingently or o[herwise, under this Plan, except the right to designate a
beneficiary or beneficiaries; provided, that this Section shall not affect, restrict, or abridge any
right of setoff or lien which the trust may have by law.
7.6. LOANS TO PARTICIPANTS:
[a] General Rules: The Board, in accordance with a uniform and non-discriminatory policy,
may direct the Trustee [o make a loan to any Participant who makes a written request for
a loan in accordance with the loan policies adopted by the Board. Procedures and rules
regarding Participant loans will be promulgated by the Boazd. No loan to a Participant
may exceed one half of the Participant's vested Account balance. In addition, a loan,
when added to the outstanding balance of all other loans to the Participant from this and
any other qualified Plan maintained by the County, may not exceed $50,000 less the
excess of the highest outstanding balance of loans from the Plan during the one-year
period ending on the day before suc6 loan is made over the outstanding balance of loans
from the Plan on the day such loan is made.
For purposes of the loan limits described above, all plans of the County will be treated as
one plan. An assignment or pledge of any portion of the Participant's interest in the Plan
and any loan, pledge, or assignment of any insurance contract purchased under the Plan
will be treated as a loan under this Section.
[b) Securitv and Interest: All loans will be adequately secured and will beaz a rate of interest
to be deterrnined by the Board that shall be considered reasonable on the date the loan~
was made. A Participant loan will be considered an investment of the Account of the
Participant requesting the loan and interest paid on a loan will be allocated to the Account
of the Participant-borrower.
[c] Repayment of L,oan: Any loan must be repaid in level payments of principal a~d interest
at least quarterly within the term of the loan or on the occurrence of an event that renders
the Participant's Account distributable, whichever occurs first. If a Participant does not
repay a loan within the time prescribed, in addition to enforcing payment through any
legal remedy, the Board may instruct the Trustee to deduct the total amount of the loan
and any unpaid interest due on it from the PaRicipant's Account when the Account
becomes distributable under the Plan. The term of the loan may not extend beyond five
years from the date of the loan unless the loan is used to acquire a dwelling unit which
within a reasonable time (determined at the time the loan is made) will be used as the
principal residence of the Participant. Loans will be suspended as perntitted under Code
Section 414(u).
7.7. QUALIFIED DOMESTIC RELATIONS ORDERS:
[a] Definitions:
[1] "Altemate payee" means any spouse, former spouse, child, or other dependent of
a Participant who is recognized by a Qualified Domestic Relations Order as
19
TAX~5364312
having a right to receive all, or a portion of, the benefits payable under a plan with
respect to the Participant.
[2] "Earliest Retirement Age" means, for purposes of this Section only, the earlier of
[i] the date the Participant is entitled to a distribution under the Plan or [ii] [he
]ater of the date the Participant attains age 50 or the earliest date on which the
Participant could begin receiving benefits under the Plan if the Participant
sepazated from service.
[3] "Qualified Domestic Relations Order" means an order that creates or recognizes
the existence of an altemate payee's right to, or assigns to an altemate payee the
right to, receive al] or a portion of the benefits otherwise payable to a Participant
under the Plan. A Quatified Domestic Rela[ions OTder includes any judgment,
decree, or order (including approval of a property settlement agreement) that
relates to the provision of child support, alimony payments, or mazital property
rights to a spouse, former spouse, child, or other dependent of a Participant, and is
made pursuant to a State domestic relations law (including a community property
law). To qualify, the Domestic Relations Order must:
[A] clearly state the name and last known mailing address of the Participant
and the name and mailing address of each alternative payee covered by the
order,
[B] clearly state the amount or percentage of the Participant's benefits to be
paid by the Plan to each alternate payee, or the manner in which the
amount or percentage is to be determined;
[C] cleazly state the number of payments or period to which the order applies;
[D] identify each Plan to which the order applies;
[E] not require the Plan to provide any type or form of benefits, or any option,
not otherwise provided under the Plan;
[F] not require the Plan to provide increased benefits (determined on the basis
of actuarial value); and
[G] not require the paymen[ of benefits to an altemate payee that are required
to be paid to another altemate payee under another order previously
determined to be a Qualified Domestic Relations Order.
[b] Pavment of Benefits Under a Oualified Domestic Relations Order: Section 7.5 will not
apply to prevent payment of benefits to an altemate payee under the terms of a Qualified
Domestic Relations Order. In the case of any distribution before a Patticipant has
separated from service, a Qualified Domestic Relations Order will not fail to meet the
requirements of subparagraph [E] above solely because the Order requires that payment
of benefits be made to an alternate payee [A] on or after the date the Participant attains
20
TAX~536431.2
the Earliest Retirement Age, [B] as if the participant had retired on the date on which
such payment is to begin under the Order, and [C] in any form in which benefits may be
paid under the Plan to the Participant. Notwithstanding any other provision of this Plan,
payment of benefits to an Alternate Payee may be made at the time prescribed in the
Qualified Domestic Relations Order. A person who is an altemate payee under a
Qualified Domesuc Relations Order will be considered a Beneficiary under the Plan.
[c] Procedures: The Board will establish reasonable procedures for determining the qualified
status of a domestic relations ordec The procedures:
[1] will be in writing;
[2] will provide that each person specified in a Qualified Domestic Relations Order as
entitled to payment of plan benefits will be noufied of the procedures promptly
upon receipt of the order by the Plan; and
[3] will permit an altemate payee to designate a representative for receipt of copies of
notices that are sent to the altemate payee.
Within a reasonable period of time afrer receipt of an Order, the Boazd will
determine whether the order is a Qualified Domestic Relations Order and notify
the Participant and each alternate payee of the determination. During any period
in which the issue of whether a domestic relations order is a Quatified Domestic
Relations Order is being determined, the Board will segregate, in a separate
account, any otherwise distributable amounts that would have been payable to the
altemate payee during the period if the order had been determined to be a
Qualified Domestic Relations Order. If, within 18 months the order is determined
not to be a Qualified Domestic Relations Order or the issue as to whether the
order is a Qualified Domestic Relations Order is not resolved, then the Board will
pay the segregated amounts to the person or persons who would have been
entitled to those amounts if there had been no order. If the Board acts in
accordance with the provisions of the Plan, then the Plan's obligation to the
Participant and each alternate payee is discharged to the extent of any payment
made.
ARTICLE S
ADMINISTRATION
8.1. APPOINTMENT OF BOARD: The Boazd shall consist of 5 members with staggered
4-yeaz terms. One member shall be the County Treasurer of Pitkin County. Two of the
members shall be nonelected County employees elected by participating employees under
procedures specified by the Board of County Commissioners and the other two members shall be
registered electors of the County appointed by the Board of County Commissioners. The Board
of County Commissioners may remove any Board member other than the County Treasurer for
failure to discharge his official duties and responsibilities as defined in the plan. Any vacancy
21
TAX15364312
occurring on the Board because of resignation, removal or daath shall be filled for the remainder
of the term of such member by appointment by the Board of County Commissioners.
8.2. ORGANIZATION AND OPERATION OF BOARD: The Board may adopt such
procedures as it deems desirable for the conduct of its afFairs, provided, however, that the
following rules and procedures shall apply:
(a] The Board shall act only by a majority vote of the entire Board, such action to be
properly documented in writing and filed with the County Clerk and Recorder.
[b] The Boazd shall meet at least quarterly. All meetings of the Board shall be open to the
Employees and to the public.
[c] The Board shall comply with all applicable State, Local and Federal laws.
[d] The Boazd shall furnish each Plan Participant with a report of the value of his Account,
including earnings, at least annually.
[e] The Board shall annually report to the Employees the status, including contributions and
disbursements, of each account defined in this Plan.
8.3. INFORMATION TO BE MADE AVAILABLE TO BOARD: To enable the Board [o
perform all of its duties under the Plan, the County shall provide the Boazd with access to the
information that is available in County records for each Employee as [he Boazd may require.
Information not in the County records may be obtained from the participants. The Board, and
the County may rely on and shall not be liable because of any information that an Employee
provides, either directly or indirectly.
8.4. GENERAL DUTIES AND POWERS OF BOARD: The Board shall decide all questions
arising in the administration, interpretation, and application of the Plan and Trust, including all
questions relating to eligibility, vesting, and distribution, except as may be reserved under this
Plan to the County or the Boazd of County Commissioners. The Board from time to time shall
direct the Trustee concerning the payments to be made oat of the Trust Fund pursuant to the
Plan. All notices, directions, information, and other communications to and from the Board shall
be in writing.
8.5. EMPLOYMENT OF ADVISERS AND PERSONS TO CARRY OUT
RESPONSTBILTI'IES: The Board may employ one or more persons to render advice with regard
to any responsibility the Board has under the Plan and may employ one or more persons to carry
out any of his responsibilities under the Plan.
8.6. KEEPING OF RECORDS: The Board shall keep a record of all of its proceedings and
shall keep al] such books of account, records, and other data as may be necessary or advisable in
its judgment for the administration of this Plan and Trust, including records to reflect the affairs
of this Plan, to determine the amount of vested and/or forfeitable interests of the respecuve
Participants, and to determine the amount of all benefi[s payable under this Plan. The Board
shall maintain separate accounts for each Participant as provided under Section 5.1. Subject to
TAX~536431.2
22
the requirements of law, any person dealing with the Board may rely on, and shall incur no
liability in relying on, a cer[ificate or memorandum in writing signed by the Board as evidence of
any action taken or resolution adopted by the Board.
8.7. COMPENSATION AND EXPENSES:
[a) General: A(1 Plan expenses shall be paid by the Plan first by application of forfeitures
under Section 7.4; second by application of net eamings on Plan investments, and then
from County contributions; provided, however, that the County, in its discretion, may
elect to pay directly all or any part of such Plan expenses.
[b] Comnensation and Expenses of Boazd and Trustees: No Board Member or Trustee shall
receive any compensation from the Plan, except for reimbursement of expenses properly
and actually incurted.
[c] Comuensation of Trustee: A Trustee who is not a full-time Employee of the County shall
be entitled to such compensation for its services as the Board and the Trustee mutually
shall determine.
[d] Comoensation of Persons Retained or Emploved bv Fiduciazv: The compensation of all
agents, counsel, or other persons retained or employed by the Board or by the Trustee ,
shall be determined by the Board of Trustees provided that a person who is a full-time
employee of the County shall receive no compensation from the Plan.
8.8. CLAIMS PROCEDURE:
[a] Filine and Initial Determination of Claim: Any Participant, beneficiary, or his duly
authorized representative may file a daim for a Plan benefit to which the claimant
believes that he is entitled. Such a claim must be in writing and delivered to the Board in
person or by certified mail, postage prepaid. Within 90 days after receipt of such claim,
the Board shall send to the claimant by certified mail, postage prepaid, notice of the
granting or denying, in whole or in paR, of such claim, unless special circumstances
require an extension of time for processing the claim. In no event may the extension
exceed 90 days from the end of the initial period. If such extension is necessary, the
claimant will be given a written notice to this effect prior to the expiration of the initial
90-day period. The Board shall have full discretion to deny or grant a claim in whole or
in part. If notice of the denial of a claim is not fumished in accordance with this
paragraph [a], the claim shall be deemed denied and the claiman[ shall be permitted to
exercise his right of review pursuant to paragraphs [c] and [d] of this Section.
[b] Dutv of Board Upon Denial of Claim: The Board shall provide to every claimant who is
denied a claim for benefits written notice setting forth in a manner calculated to be
understood by the claimant:
[1] the specific reason or reasons for the denial:
[2] specific reference to pertinent Plan provisions on which the denial is based;
23
TAX~5364312
[3] a descripUon of any additiona] material or information necessary for the claimant
to perfect the claim and an explanation of why such material is necessary; and
[4] an explanation of the Plan's claim review procedure.
(c] Request for Review of Claim Denial: Within 60 days after receipt by the claimant of
written notification oF the denial in whole or in part of his claim, the claimant or his duly
authorized representative, npon written application to the Board in person or by certified
mail, postage prepaid, may request a review of such denial, may review pertinent
documents, and may submit issues and comments in writing. Upon its receipt of the
request for review, the Board shall noqfy the Board of County Commissioners of the
request.
[d] Claims Reviewer: Upon its receipt of notice of a request for review, the Board of County
Commissioners shalt appoint a person other than the Board to be the claims reviewer.
The Board shal] deliver to the claims reviewer al] documents pertinent to the review. The
claims reviewer shall make a prompt decision on the review. The decision on review
shall be written in a manner calculated to be understood by the claimant, and shail
include specific reasons for the decision and specific references to the pertinent Plan
provisions on which the decision is based. The decision on review shall be made not
later than 60 days after the Board's receipt of a request for a review, unless special
circumstances require an extension of time for processing, in which case a decision shall
be rendered not later than 120 days after receipt of a request for review. If such extension
is necessary, the claimant shall be given written notice of the extension prior to the
expiration of the initia] 60-day period. If notice of the decision on the review is not
furnished in accordance with this paragraph [d], the claim shall be deemed denied and the
claimant shall be permitted to exercise his right to legal remedy pursuant to paragraph [e]
of this Section.
[e] L.eeal Remed~: Afrer exhaustion of the claims procedure as provided under this Plan,
nothing shal] prevent any person from pursuing any other legal remedy.
ARTICLE 9
POWERS AND DUTIES OF THE TRUSTEE
9.1. INVESTMENT OF TRUST FUND:
[a] Duties of Trustee: The duty of tlte Trustee is to hold in trust the funds it receives. The
Trustee shall have exclusive authority and discretion to manage and control the assets of
the Plan and to manage, invest and reinvest the Trust Fund and the income &om it under
this article, without distinction between principal and income. The Trustee shall be
responsible only for the sums it actually receives as Trustee. The Trustee shall have no
duty to collect any sums from the Board.
[b] Powers of Trustee: The Trustee shall have the power to invest and/or reinvest any and a11
money or property of any description at any time held by it and constituting a part of the
24
TAX\536431.2
Trust Fund, without previous application to, or subsequent ratification of, any courE,
tribunal or commission, or any federal or state govemmental agency. The Trustees shall
be govemed by the standard for investments prescribed in Colorado Revised Statutes
Section 15-1-304. The Trustee may invest in real property and all interests in real
property, in bonds, notes, debentures, mortgages, commercial paper, preferred stocks,
common stocks, or ot6er securities, rights, obligations or pcoperty, real or personal,
including shares or certificates of participation issued by regulated investment companies
or regulated investment trusts, shazes or units of participation in qualified common trust
funds, in qualified pooled funds, or in pooled investment funds of an insurance company
qualified to do business in the state; provided, however, that the aggregate amount
invested in cocporate stocks or corporate bonds, notes or debentures that are convertible
into corporate stock or in investment trust shares, shall not exceed the limit specified in
CRS 24-51-206(3).
[c] Participant Investment Directions
[1] General Rules. Each Participant may direct investment of their Account in
categories of investments pemutted by law and in accordance with the rules and
procedures for Participant investment direction established by the Board. The
rules may specify the percentage of a Participant's Account that may be invested
at the Participant's direction, and any portion of a Participant's Account that will
remain subject to investment direction by the Board. The Board and the Trustee
will be under no duty to question any inveshnent direction by a Participant, or to
make suggestions to the Par[icipant with respect to Participant directed
investments. If a Participant fails to direct the Trustee as to the investment of any
portion of the Participant's Account, that portion of the Account will be invested
at the Board's discretion until effective investment directions are received. The
right to direct investments under this Section will be the sole and exclusive
investment power granted to Participants. The exercise of investment direction by
a Participant will not cause the Participant to be a Fiduciary, and neither the
Trustee, Board, nor the County will be liable for any loss that results from
exercise of inves[ment direction by a Participant.
[2] Investment Funds. The Trustee may offer investment funds tttat may include
fixed income obligations, such as savings accounts, certificates of deposit, and
fixed income government and corporate obligations. The investment categories
also may include common stock, real property, notes, mortgages, commercial
paper, preferred stocks, mutual funds, or other securities, rights, obligations, or
property, real or personal, including shares of cer[ificates of participation issued
by regulated investment trusts and shares or units of participation in qualified
common trust funds or pooled funds. Participant Accounts in invesUnent
categories offered by the Trustee may be commingled. Investment categories
may not include collectibles within the meaning of Code Section 408(m).
9.2. ADMINISTRATIVE POWERS OF THE TRUSTEE: Subject to the requirements
imposed by law, the Trustee shall have all powers necessary or advisable to carry out the
25
TAX~536431.2
provisions of this Plan and Trust and all inherent, implied, and statutory powers now or
subsequently provided by law, including specifically the power to do any of the following:
[a] to cause any securities or other property to be registered and held in its name as Trustee,
or in the name of one or more of its nominees, without disclosing the Fiduciary capacity,
or to keep the same in unregistered form payable to bearer;
[b] to sell, grant options to sell, exchange, pledge, encumber, mortgage, deed in trust, or use
any otherform of hypothecation, or otherwise dispose of the whole or any part of the
Trust Fund on such terms and for such property or cash, or part cash and credit, as it may
deem best to retain, hold, maintain, or continue any securities or investrnents which it
may hold as part of the Trust Fund for such length of time as it may deem advisable; and
generally, in all respects, to do all things and exercise each and every right, power and
privilege in connection with and in relation to the Trust Fund as could be done, exercised
or executed by an individua] holding and owning such property in absolute and
unconditional ownership;
[c] to abandon, compromise, contest, and arbiuate claims and demands; to institute,
compmmise, and defend actions by law (but without obligation to do so); in connection
with such powers, to employ counsel as the Trustee shall deem advisable; and to exercise
such powers all at the risk and expense of [he Trust Fund;
[d] to borrow money for this Trust upon such terms and conditions as the Trustee shall deem
advisable, and to secure the repayment of such by the mortgage or pledge of any assets of
the Trust Fund;
[e~ to vote in person or by proxy any shares of stock or rights held in the Trust Fund; to
participate in and to exchange securities or other property in reorganization, liquidation,
or dissolution of any corpotation, the securities of which are held in the Trust Fund; and
[t] to pay any amount due on any Ioan or advance made to the Trust Fund, to charge against
and pay from the Trust Fund all taxes of any nature levied, assessed, or imposed upon the
Trust Fund, and to pay al] reasonable expenses and attorney fees necessarily incurred by
the Trustee with respect to any of the foregoing matters.
9.3. ADVICE OF COUNSEL: The Trustee may consult with lega] counsel, who may be
counsel for the County, or Trustee's own counsel, with respect to the meaning or construction of
the Plan and Trust or Trustee's obligations or duties. The Trustee shall be protected from any
responsibility with respect to any action taken or omitted by it in good faith pursuant to the
advice of such counsel, to the extent permitted by law.
9.4. RECORDS AND ACCOLTNTS OF THE TRUSTEE: The Trustee shall keep all the
records and accounts that may be necessazy in the administration and conduct of this Trust. The
Trus[ee's records and accounts shall be open to inspection by the County and the Board at all
reasonable times during business hours. Al] income, profits, recoveries, contributions,
forFeitures, and any and all moneys, securities, and propenies of any kind at any cime received or
held by the Trustee shall be held for investment purposes as a commingled Trust Fund. Separate
26
TA7C~5364312
accounts or records may be maintained for operational and accounting purposes, but no such
account or record shall be considered as segregating any funds or property from any other funds
or property contained in the commingled fund, except as otherv/ise provided. Afrer the close of
each yeaz of the Trust, the Trustee shall render to the County and the Board a statement of assets
and liabilities of the Trust Fund for such year.
9.5. APPOINTMENT, RESIGNATION. REMOVAL AND SUBSTTTUTION OF TRUSTEE:
The Board may serve as Trustee or may appoint a Tntstee or Trustees, each of which shall hold
office until resignauon or removal by the Board. The Trustee may resign at any time upon 30
days' written notice to the Board. The Trustee may be removed at any time by the Board upon
30 days' written notice to the Trustee with or without cause. Upon resignation or removal of the
Trustee, the Board, shall appoint a successor trustee which shall have the same powers and duties
as are conferred upon the Trustee appointed under this Plan. The resigning or removed Trustee
shall deliver to its successor trustee all proper[y of the Trust Fund, less a reasonable amount
necessary to provide for its compensation, expenses, and any taues or advances chargeable or
payable out of the Trust Fund. If the Tmstee is an individual, death shall be treated as a
resignation, effective immediately. If any corporate Trustee at any time shall be merged or
consolidated with, or shall sell or transfer substantially all of its assets and business to another
corporation, whether state or federal, or shall be reorganized or reincorporated in any manner,
then the resulting or acquiring corporation shall be substituted for such corporate Trustee without
the execution of any instrument and without any action upon the part of the Board, any
Participant or beneficiary, or any other person having or claiming to have an in[erest in the Trust
Fund or under the Plan.
9.6. APPOINTMENT OF TRUSTEE-ACCEPTANCE IN WRTI'ING: The Trustee shall
accept its appointment as soon as practical by executing this Plan or by delivering a signed
document to the Board. The Board shal( appoint a new Trustee if the Trustee fails to accept its
appointment in writing.
9J. INVESTMENT MANAGER: If the Board so directs, the Trustee shall appoint an
Investment Manager to assume powers or responsibilities for the investment and management of
assets of the Plan. The Investment Manager shall assume full liability for all duties and powers
assigned to him and shall be subject to the fiduciary standards and responsibilities imposed by
law. The Trustees shall not be liable for acts or omissions of the Investment Manager nor shall
the Trustees be under an obligation to manage any assets of the Plan that aze subject to the
management of an Investment Manager. Nothing in this paragraph shall relieve any Trustees of
any liability under the Plan for any act or omission of the Trus[ees. The Investment Manager
sha11 be a fiduciary [a] who has the power to manage, acquire, or dispose of any assets of a Plan;
[b] who is [1] registered as an investment adviser under [he Investment Advisers Act of 1940;
[2] a bank, as defined in that Act; or [3] an insurance company qualified to perform services
described in [a] under the laws of more than one state; and [c] who has acknowledged in writing
that he is a fiduciary with respect to the Plan.
ARTICLE 10
27
TAXl53fi431.2
CONTINUANCE, TERMINATION, AND
AMENDMENT OF PLAN AND TRUST
10.1. TERMINATION OF PLAN AND TRUST:
[a] General Rules: The expectauon of the County is to continue this Plan and Trust
indefinitely, but the continuance of the Plan and Trust is not assumed as a contractual
obligation by the County, and the right is reserved to the County, by action of the Boazd
of County Commissioners, to terminate this Plan and/or Trust in whole or in part at any
time. Such termination by the County in no event sha11 have the effect of revesting any
part of the Trust Fund in the County. Notice of such termination shall be given to [he
Trustee and the Board in the form of an inswment in writing executed by the County
pursuant to the action of the Board of County Commissioners. In its discretion the Board
may request a favorable determination letter from the Internal Revenue Service stating
that the prior qualified status of the Plan has not been affected by such termination.
Termination of the Plan and/or Trust shall take effect as of the date of the delivery of the
notice of termination and favorable determination ]etter, if obtained, to the Trustee.
[b] Termination of Plan and Continuance of Trust: The County, by action of the Board of
County Commissioners, may terminate this Plan but retain the assets of the Trust Fund
and pay them under the terms of the Plan as if no Plan termination had occurred. In its
discretion the Board may request a favorable determinauon letter from the Intemal
Revenue Service stating that the prior qualified status of the Plan and Trust has not been
affected by the termination. The termination of the Plan shall take effect as of the date
specified by the Board of County Commissioners. If the Plan is terminated under this
paragraph, the Trust shall conunue until the earlier of such time as all assets of the Trust
are distributed, or the Board of County Commissioners terminates the Trus[ under
Section 101[a].
10.2. MERGER. CONSOLIDATION, OR TRANSFER OF ASSETS OR LTABILITTES OF
THE PLAN: The Board of County Commissioners may merge or consolidate this Plan with flny
other plan or may transfer the assets or liabilities of the Plan to or from any other plan.
Afrer approval by the Internal Revenue Service, the $oazd of County Commissioners transferred
to a qualified defined contribution plan established by the Roaring Fork Transportation Authority
the Account of any Participant who transferred employment from the County to the Roaring Fork
TranspoRation Authority, including the unvested portion. Thereafter, each such Participant's
Account was subject to the terms of the Roaring Fork Transportation Authority Plan, After such
transfer, such Participant ceased to have any further interest or participation in the Trust Fund or
any subsequent accruals or contributions to the Trust Fund. Such transfer did not result in a
partia] termination of the Plan.
10.3. DISTRIBUTION UPON TERMINATION OF TRUST: If the Trust is tertninated under
this article, the Trustee shall determine the value of the Tr¢st Fund and of the respective interests
of the Participants and beneficiaries under Article 5 as of the business day next following the
28
TAX~536431.2
date of such termination. The Trustee then shall transfer to each Participant or beneficiary the
net balance of the Participant's Account.
10.4. AMENDMENTS TO PLAN AND TRUST: At any time the County may amend this
Plan and Trust by action of the Boazd with the approval of the County Board of Commissioners,
provided that no ameadment shall cause the Trust Fund to be diverted to purposes other than for
the exclusive benefit of the Participants and their beneficiaries. No amendmen[ shall decrease
the vested interest of any Participant. Notwithstanding anything in this Plan and Trust to the
contrary, the Plan and Trust may be amended at any time to conform to the provisions and
requirements of federal and state law with respect to employees' uusts or any amendments to
such laws or regulations or rulings issued pursuant to them. No such amendment shal] be
considered prejudicial to the interest of any Participant or beneficiary under this Plan.
ARTICLE 11
MISCELLANEOUS
i l.l. BENEFITS TO BE PROVIDED SOLELY FROM THE TRUST FUND: All benefits
payable under this Plan shall be paid or provided solely from the Trust Fund, and the County
assumes no liability or responsibility for payment of benefits.
ll.2. NOTICES FROM PARTICIPANTS TO BE FILED WTTH BOARD: Whenever
provision is made in the Plan that a PaRicipant may exercise any option or election or designate
any beneficiary, the action of such Par[icipant shall be evidenced by a written notice signed by
the Participant and delivered to the Board in person or by certified mail. If a form is fumished
by the Board for such purpose, a Participant shall give written notice of his exercise of any
option or election or of his designation of any beneficiary on the form provided for such purpose.
Written notice shall not be effective until received by [he Board.
113. TEXT TO CONTROL: The headings of articles and sections are included solely for
convenience of reference. If any conflict between any heading and the text of this Plan and Trust
exists, the text shall control.
11.4. SEVERABILITY: If any provision of this Plan and Trust is illegal or invalid for any
reason, such illegality or invalidity shall not affect the remaining provisions. On the contrary,
such remaining provisions shall be fully severable, and this Plan and Trust shall be construed and
enforced as if such illegal or invalid provisions never had been inserted in this Plan and Trust.
11.5. JURISDICTION: This Plan shall be construed and administered under the laws of the
State of Colorado when the laws of that jurisdiction are not in conflict with federal substantive
law.
11.6. PLAN FOR EXCLUSNE BENEFIT OF PARTICIPANTS: REVERSION
PROHIBITED: This Plan and Trust has been established for the exdusive benefit of the
Participants and their beneficiaries. Under no circumstances shall any funds contributed to or
held by the Trustee at any time revert to or be used by or enjoyed by the County, excep[ to the
extent perntitted by law.
29
TAX\5364312
IN WITNESS WHEREOF, the parties to this agreement have executed this document by
their duly authorized officers, this ~~~ day of d u-~`-" 2008.
(Corporate
S~ 1;~ PITKIN COUNTY, COLORADO
i:t11. ~
~COBAa''
ST: BY~ "'"~
I
i
J ,,( 1',
S etary
/ !
P1TKIN COUNTY PUBLIC EMPLOYEE3'
RETIREMENT BOARD
By: ~l/y!?. ~~%'C~
Chairman
TRUSTEE: PITKIN COUNTY EMPLOYEES'
REITREMENT BOARD
gy; ~~yL ~~'%;~
Chairman
30
TAX~536431.2