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2008-20
A RESOLUTION
AUTHORIZING THE FIRST AMENDMENT TO THE CITY OF LAKEWOOD AMENDED AND RESTATED DEFERRED COMPENSATION PLAN AND TRUST AGREEMENT
WHEREAS, the City of Lakewood adopted the City of Lakewood Deferred Compensation Plan and Trust Agreement, ("Plan") December 14, 1998; and,
WHEREAS the City of Lakewood amended and restated the Plan, effective January 1, 2007; and,
WHEREAS, the City of Lakewood desires to amend the Plan to incorporate tax law changes from the 2006 Pension Protection Act.
NOW, THEREFORE, BE IT RESOVLED by the City Council of the City of Lakewood, Colorado, that:
SECTION 1. The Plan, at ARTICLE VI., TRUST AND INVESTMENT OF ACCOUNTS, Section 6.8, ("Transfers"), paragraph (b) ("Outgoing Transfers"), shall be amended in its entirety to read as follows:
(b) Outgoing Transfers: An amount may be transferred to any Eligible Rollover
Plan maintained by another employer, and charged to a Participant's Account
under this Plan, if (i) the Participant has separated from service with the
Employer and become an employee of the other employer, (ii) the other employer's
plan, or the custodian's IRA, as the case may be, provides that such transfer
will be accepted, and (iii) the Participant and the employers and/or custodians
have signed such agreements as are necessary to assure that the Employer's liability
to pay benefits to the Participant has been discharged and assumed by the other
employer or custodian. An Eligible Rollover Plan, for the purposes of this paragraph,
means any defined contribution plan, defined benefit plan, annuity contract
described in Code §403(b), individual retirement account (IRA) or annuity
described in Code §§ 408(a) or (b), or Roth IRA described in Code
§ 408A, and any eligible plan under Code §457(b) 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 which agrees to separately
account for amounts transferred into such plan from this Plan. The Employer
may require such documentation from the other plan as it deems necessary to
effectuate the transfer, to confirm that such plan is an eligible deferred compensation
plan within the meaning of Section 457 of the Code, and to assure that transfers
are provided for under such plan. Such transfers shall be made only under such
circumstances as are permitted under Section 457 of the Code and the regulations
thereunder.
SECTION 2. The Plan, at ARTICLE VII., BENEFITS, Section 7.5 ("Unforeseeable
Emergencies"), shall be amended in its entirety to read as follows:
7.5 Unforeseeable Emergencies:
(a) In the event an unforeseeable emergency occurs, a Participant may apply to the Board to receive that part of the value of his/her Account that is reasonably needed to satisfy the emergency need. If such an application is approved by the Board, the Participant shall be paid only such amount as the Board deems necessary to meet the emergency need, but payment shall not be made to the extent that the financial hardship may be relieved through cessation of deferral under the Plan, insurance or other reimbursement, or liquidation of other assets to the extent such liquidation would not itself cause severe financial hardship.
(b) An unforeseeable emergency shall be deemed to involve only circumstances of severe financial hardship to the Participant, or to the spouse, dependent or Beneficiary of the Participant, resulting from a sudden unexpected illness, accident, or disability, loss of property due to casualty, imminent foreclosure of, or eviction from, a primary residence, the need to pay for medical expenses (including non refundable deductibles and prescription medicine), and the need to pay funeral expenses for a family member, or other similar and extraordinary unforeseeable circumstances arising as a result of events beyond the control of the Participant, or of the spouse, dependent or Beneficiary of the Participant, as the case may be. The need to send a child to college or to purchase a new home shall not be considered unforeseeable emergencies. The determination as to whether such an unforeseeable emergency exists shall be based on the merits of each individual case.
SECTION 3. The Plan, at a new Section 7.8 ("Distributions for Health and
Long-Term Care Insurance") is hereby added to ARTICLE VII., BENEFITS, to
read in its entirety as follows:
7.8 Distributions for Health and Long-Term Care Insurance:
Retired Participants who were employed as sworn police officers of the City
of Lakewood may direct the Plan Administrator to remit up to $3,000 each year
from their Account to pay the cost of qualified health insurance and/or long-term
care insurance, subject to applicable limitations imposed under Code §
402 and the Treasury Regulations thereunder. In order to be eligible for health
and long-term care insurance distributions, a Participant must be separated
from service with the Employer by reason of Disability or attainment of Normal
Retirement Age under the Plan. The Plan Administrator must remit such insurance
payments directly to the insurance provider. The $3,000 annual limitation limits
the total distributions from all retirement plans in which a Participant has
an account.
INTRODUCED, READ AND ADOPTED by a vote of 11 For and 0 Against at a regular meting of the City Council on January 14, 2008, at 7 o'clock p.m. at the Lakewood Civic Center, 480 South Allison Parkway, Lakewood, Colorado.
Bob Murphy, Mayor
ATTEST:
Margy Greer, City Clerk
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