HomeMy WebLinkAbout7 Pension Plan AgendayItem # 7
1W
To: Board of Directors
From: Peter Holzmeister
Date: November 26, 2003
Subject: Pension plan amendment
Why this matter is before the board: This matter involves amending the
District's defined benefit pension plan. Only the board is authorized to amend
the pension plan.
History: For many years the District has offered a defined benefit pension plan
to the hourly wage employees. The board of directors of the District serves as
Trustee for the plan. The Wayne Richardson Company in Sacramento
administers the plan.
The pension plan must conform to the laws enacted by the Federal government
and to the rules and regulations promulgated by the Internal Revenue Service.
From time to time the law changes and we must then amend the pension plan
accordingly.
New information: Attached is information provided by Ron Richardson
describing the need to amend our pension plan because new requirements in
Federal law. Ron will attend the December 3 board meeting to describe the
changes and answer questions.
Recommendation: I recommend that the board adopt the resolution approving
the restated pension plan documents.
I expect to receive the draft resolution from Ron Richardson on Monday and will
forward it to you.
tF
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NOV 26 2003 9: 14AM HP LASERJET 3200 p. 1
WAYNE RICHARDSON COMPANY, INC.
— -- Benefits & Financial Consultants --
November 26, 2003
Peter L.Holzmeister, General Manager
Truckee Donner Public Utility District
PCB Box 309
Truckee CA 96160-0309
Subject: Restatement of Pension Plan Documents
Dear Peter,
Enclosed are the following items for adoption and execution by the Board of Directors:
J 1 Two copies of a Plan document/trust agreement for the purpose of continued compliance
with federal laws passed in the`90s. Both copies must be signed for the District,and by the
Plan Trustees on the last page,
2. Two copies of an EGTRRA amendment bringing the plan into compliance with the Tax
Reform Act of 2001.Both copies must be signed for the District and by the Plan Trustees on
the last-pagc.
3. Two copies of IRS Forms 5307,and 2848. Both copies must be signed and dated.
V 4. Two copies of a Summary Plan Description—Please give one copy to Mike Connell.
5. Funding Policy and Method
6. A sample Board Resolution fo,your use.
7. A Statement covering our services in the design of GUST compliant Plan documents.
Please return one copy of the Plan documentitrost agreement,the EGTRRA amendment,forms
5307 and 2848 and a check oayable_to Internal Revenue Service in the amount of$AOO.
I ain available to attend cither December Board Meeting.Please don't hesitate to call if you nave
any questions.
Warm personal regards,
Ronald B, Richardson,
President
i
161 Lanfranco Circle - Sacramento CA 95835 (916) 419-9615 Fax 419-8617
NOV 26 2003 9: 14AM HP LRSERJET 3200 Fi
rp., 5307 Application for Determination for Adopters of OMB No.1545.0200
(Rav,September 2001) Master or Prototype or Volume Submitter Plans For IRS Use Only
DopyrumnlalneTreesuy (Under sanctions 401 fit)and 501(a)of the Internal RervenusCode)
rnerna Revenue Semce
Review the Pracedurad Requirements Checkllat on a e 4 before submitting this application-
la Name of plan source,(employer A silgie-omployer plan) 7b Employaridenolhadon number
Truckee Donner Public Utility District 94-6001449
Number,street,and room w suite no.(Ira P.O.box,ace instructions.) 1e Employers tax year ends--Enter(MM)
11570 Donner Pass Road 12/31
day state _ ZIP made Id Telephone number
Truckee CA 96161 530-587-3896
2a Person to foment B rem'elnformalign is needed.(See insbvcdona;(if Form 2044,Power of Attorney 1e Faxnumber
and Declamation of Representative,or other written designation is at'aCheb,check box and do nut 530-587-5056
complete the rest of if Is line,) _ ► ® _
Name
Number,street,and room or suite no.(If a P.O.box,we instuetions.7 2b Telephone rumba,
City State ZIP code 2c Fax number
3a Determination requested for(enter applicable rwmber(s)in the box and fill in required Information).(See irstmctions.)
Enter 1 for Initial Qualification-Date plan signed ►
r�
2 Ertter 2 for a request after initial Qualification
T - Date amendment signed ►
Date amendment effective ► 01/01/2001
I Enter 3 for Standardized Plans(See instructions)
b Has the plan received a determination letter? Yes C! No I
Date of letter ► J uly 31, 1984 _
If"Yes"submit a copy of the latest bettor and subsaquert amendments.
Number ofamendments ► _ 9
Ir"%li submit all prior plans)and/or adoption agreement(s).(See instructions.)
c Have interested parties been given the required notification of this appiication?(See Instructions) Yes FXJ No ^
d Does the plan have a cash or deferred arrangement(section 401(k))? Yes _
No ��
a Does the plan have matching contributions(section 401(m))? . . . . . . Yes No [X!
If Does the plan have after-tax employee voluntary contributions(section 401(m))7 . . . . . . . . Yes No (J
g Does the plan provide fordispariry In contributions or benefits that is intended to meet the permitted _
disparity requirements ofsectan401(1)? . - . Yes ❑ No
4a Name of plan(Plan name may not exceed 66 characters,including spaces.):
Truckee Danner Public Utility District Defined Benefit Plan
D01 b Enter 3-digit plan number 01/01/1972 of Enter plan%original effective date(MMDDYYYY)
12(31 c Enter date pan year ends(MMDD) _ 3B a Enter number of participant(See instructions-)
type 5 Indicate of plan by entering the number from the list below'
14 1-profit-sharingard/or401(k)
L 2-money purchase
3--target benefit
4-defined benefit but rot cash balance
Under penaioes of perjury,I declare that I have examined this applicallen,incllncludin accompanying statements and schedules.and to the best of my knowledge
and belief It is true.Correct.and complete.
print Name ► Ties P.
star tore ► Date ►
Far Paperwork Reduction Act Notice,sae separste Instruceans. Form 5307(Ray.9.2001)
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NOV 26 2003 9: 14AM HP LRSERJET 3200 p. 3
Form 5307(Rev.e4001) Page 2
Yes No
68 Is the employer a member of an affiliated service group? X
b Is the employer a member of a controlled group of corporations or a group of trades or businesses under common
control? . . . . . . . . . . . . . . . X
If a and/or b above is"Yes,"complete required statement(see instructions).
7a Is this a master or prototype plan?. . . . . . . . . . . . . . . . . . . . ! X
If"Yes,"Date of Opinion Letter ► Serial Number Is,
'--'---- --------- ----'--------'-.--`--
b is this an approved volume submitter plan? . . . . . X
If"Yes"Date of Advisory Letter ► __—_-41/17/2002 Serial Number ►.._ _ VS322489
c Are there modifications to the volume submittal plan or are there addenda to the adoption agreement?. X
!`"Yes;attach a fist of the modifications and seethe instructions under What to File and Who May Not File.
d Are there any"Other"boxes selected in the adoption agreement? . . . . . . . . . . X
Be Isthisagovemmental plan? . . . . . . X
If"Yes,"is the plan a state level plan?. . . . . . . . . . . . . . . . . X
to Is this a nonelecting church plan? . . . . . . , . . X
c is this a collectively bargained plan?(See Regulations section 1.410(b)-g) . . . . . . . . . . . . X
d Is this a section 412(i)plan? . . . . . X
i
9a Do you maintain any other qualified purls under section 4DI(a)? . . . . . . . . , X
If"Yes,"attach required statement in the instructions for line ga
If"No"skip to line 9d.
In Do you maintain another plan of the same type(i.e., both this plan and the other plan are defined contribution
plans or both are defined benefit plans)that covers non-key employees who are also covered under this pan? X
If'Yes,'when the plan is top-heavy,do the non-key employees covered under both plans receive the required
top-heavy minimum contribution or benefit under.
(1)This plan? _
(2)The other plan? . . . . . . . . . . . . . . . . .
c If this is a defined contribution plan,do you maintain a damned benefit plan(or if this is a defined benefit plan, I`
do you maintain a defined contribution plan)that covers non-key employees who are also covered under tnis
plan?. . . . . . . . . . . . . . . . . . . . . . . . X
If"Yes,"when the plan Is top-heavy,do non-key employees covered under both plans receive,
(1)the top-heavy minimum benefit under the defined benefit plan? . . . . . . . X
(2)at least a 50A minimum contribution under the defined contribution play? . . . . . . . . . X
(3)the minimum benefit offset by benefits provided by the defined contribution plan? . . . . . X
(4)benefits under both plans that,using a comparability aralysis,are at least equal to the minimum benefit?
(See instructions.) . . . . . . . . . ,; X
d Does the plan prevent the possibility that the section 415 limitations will..be exceeded for any employee who is `
(or was)a participant in this plan and any other plan of the employer? )(
Miscellaneous
N/A Yes No
10a Does any amendment to the plan reduce or eliminate any section 411(d)(6)protected benefit including an y(.
amendmer adopted after September 6,2000,to eliminate a joint and survivor annuity forth of benefit?
(See instructions.) . . . . . . . . . X
toAre trust earnings and losses allocated on the basis of account balances in a defined contribution plan? X
If%to,"attach a statement explaining how they are allocated.
c Is this plan or trust currently under examination or is any issue related to this plan or trust currently pending
before.
• The Internal Revenue Service, X
• The Department of Labor, . . . . . X
• The Pension Benefit Guaranty Corporation,or . . . . . . . . . . . . . . . . X
• Any court X
If"Yes;'attach a statement explaining the issues involved,the contact person's name(IRS Agent,DOL
Investigator,etc.)and their telephone number.Do not answer"Yss"if the plan has been submitted under
the Voluntary Compliance Program of the Employee Plans Compliance Resolution System(EPCRS .
Fortn 5307(Rev.94001)
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NOV 26 2003 9: 14AM HP LASERJET 3200 P, 4
Form 5307(Rev,94001) Pace 3
Optional determination request regarding the ratio percentage test A determination regarding the average benefit test may
be requested by attaching Schedule 0(Form 5300).
11 Is this a request for a determination regarding the ratio percentage test of Rags.section 1.410(b)-2(b)(2)or a request Yes No
for a determination regarding one of the special requirements of Rags.section 1.410(b}-2(b)(5),(6),or(7)? X
If"Yes,"complete only lines 11a through 11 n for a ratio percentage test determination,or complete only
line l to for a determination regarding one of the special requirements.
If"No"sup to line 12.
a Is this plan disaggregated into two or more separate plans that are not 401(k),401(m),or profit-sharing plans?
If'Yes,"seethe instructions and attach separate scheduias for each disaggregated(onion _
b Does the employer receive services from any leased employees as defined in section 414(n)?
c Coverage date(Mf DCYYYY).See instructions fur inserting date . . . . .
d Total number of employees include self-employed individuals)(employer-wide)
a Statutory and regulatory exclusions under this plan(do not count an employee more than once):
(1) Number of employees excluded because of minimum age or years of service required , . . . .
(2) Number of employees excluded because of inclusion Ina collective bargaining unit
(3) Number of employees excluded because they terminated employment with less than 501 hours
of service and were not employed on last day of plan year . . . . . . . . . . . . .
(4) Number of employees excluded because employed by other qualified separate lines of business
(OSLOBs) . . . , . . . . . . . -
(5) Number of employees excluded because they were nonresident aliens with no earned income
from sources within the United States . . . . . . . . . . . . . . . .
IF Total statutory and regulatory exclusions(add lines 11e(1)through 1le(5)) . . . . . .
g Nonexdudable employees(subtract line 11f from line 11d) . . . . . .
In Number of nonexciudable employees on line 1 tg who are highly compensated employees(HCEs) . . .
1 Number of nonexcludable HCEs on line I h benefiting under the plan . . . . . . . . . . .
f Number of nonexclud able employees who are ,onhigh iy compensated employees(NHCEs)(subtract
line 11 h from fine 11g) . . . . . . . . .
k Number of nonexcludable NHCEs on line f 11 benefiting under the plan . . . . . . . . . .
Ratio percentage(See Instructions.) . . . . . . . . . . . . . .
m Enter the ratio percentage for the following,if applicable:
(1) Section 401(k)part of the plan . . . . . .
(2) Section 401(m)part of the plan
Yes No
n Are the results online i ti or 11 m based on the aggregated coverage of more than one plan?
If"Yes;attach a statement shaving the names,plan numbers, EINs,and bene9valiocation formulas of the other plans.
All aggregated plans should be filed concurrently. _
o If the plan satisfied coverage using one of the special requirements of Regulations section 1,410(b)-2(b)(5),(6),or(7),enter
the!alter from the list below that identifies the special requirement:
A-1.410(1p)-2(b)(5"o NHCEs employed
B-1,410(b)-2(b)(6)r—No HCEs benefit
C-1.410(b)-2(b)(7)--Collectively bargained only
Optional determination request regarding the nondiscrimination deslgn-bassd safe harbors of section 401(a)(4).
Section 401(k)and/or section 401(m)plans that do not contain a provision for discretionary comdbutions
should not complete this line.
Ves No
12 Is this a request for a determination regarding a design-based safe harbor under section 401(a)(4)? X _
If"Yes,"complete the following:
Design-based nondiscrimination safe harbors:
a Does the plan provide for disparky in contributions or benefits that is intended to meet the permitted disparity
requirements of section 401(I)? . . . . . . . . . . X _
If"Yes,"answer line 121b.Otierwiss,skip to line 12c-
b Do the provisions of the plan ensure that the overall permitted disparity limits will not be exceeded?. . .
c Enter the letter("A"-"O")from the list below that identifies the safe harbor intended to be satisfied ► D
A-1.401(a)(4)-2(b)(2)defined contribution(DC)plan with uniform allocation formula
8-1.401(a)(4)-3(b)(3)unit credit defined benefit(DB)plan E-1.401(a)(4}3(b)(5)insurance account
C--1.401(a)(4)-3(b)(4)(i)(CNi)unit credit DB fractional,•ule plan F-1.40t(a)(AlAb)(3)target henefit plan
D-1.401(a)(4)-3(b)(40(C)(2)flat benefit DB plan G-1.401(s)(4)-6(c)(3)(iii)(b)cash balance plan
of List the plan section(s)that satisfy the safe harbor(including,if applicable,the permitted disparity requirements)
here:Article 5.1(a) on page 19
Farm 5307(Rev.9-2001)
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NOV 26 2003 9: 15nN HP LRSERJET 3200 p 5
Form 2848 Power of Attorney OMe Na. 1545-0150
(Rev.January2002) and declaration of Representative For IRS use Only
Received by,
Depaztrent C the Treasu7
"temal revenue S.,v ► See the separate instructions. Name
Taiaphone
Power of Attorney(Type or print.) Funcuen _
1 Taxpayer information.Taxpayer(s)must sign and date this form on page 2, line 9. Dale i
Taxpayer narri and address Social security numbers) Employer identification
number
Truckee Donner Public Utility District 94-6001449
11570 Donner Pass Road
Truckee, CA 96161 Daytime telephone number Plan number(if app'icable)
530.587-3696 001
hereby appoints)the following representatives)as attomey(s)-in-fact:
2 Representative(s)must sign and date this farm on page 2, Part It.
Name and address GAF No. NIA
Ronald B. Richardson Telephone No- 916-419-8615
---
1 Lantranco Circle Sacramento CA 95635 Fax No. 916-419-•-8617
_ ---- ----- -- -------- -
Check if new:Address ® Telephone No, 19
Name and address CAF No.
Telephone No.
-------------------------
Fax No.
Check if new:Address❑ Telephone No. ❑
Name and address CAF No. N/A
Michele Lellouche
1660 Prudential Drive Telephone No. {g04) 399-5888___--•.
Jacksonville, FL 32207 Fax No. --- (904) 399-55511------
Check if new:Address❑ Telephone No. ❑
to represent the taxpayer(s)before the Internal Revenue Service for the following tax matters:
3 Tax matters
Type of Tax(Income, Employment, Excise, etc.) Tax Form Number Years)or
or Civil Penalty(See the instructions for line 3.) (1040, 941, 720, etc.) Periods)
Qualification of Employee Benefit Plan Form 5307 IRS Determination Letter
4 Specific use not recorded on Centralized Authorization File(CAF). If the power of attorney is for a specific use not recorded
on CAF,check this box.See the instructions for Line 4.Specific uses not recorded on CAF. . ►❑
5 Acts authorized. The representatives are authorized to receive and inspect confidential tax information and to perform any
and all acts that I (we) can perform with respect to the tax matters described on line 3, for example, the authority to sign any
agreements, consents, or other documents. The authority does not include the power to receive refund checks (see line 6
oelow),the power to substitute another representative, the authority to execute a request for a tax return, or a consent to
disclose tax information unless specifically added below, or the power to sign certain returns. See the instructions for Line
5.Acts authorized.
List any specific additions or deletions to the acts otherwise authorized in this power of attorney: Michele Lellouche
----------
is restricted to Volume Submitter plan language quallfication
- - -------------------- ----------- - -
Note: In general, an unenrolied preparer of tax returns cannot sign any document for a taxpayer. See Revenue Procedure 81-38,
printed as Pub. 470, for more information.
Note: The tax matters partner of a partnership is not permitted to authorize representatives to perform certain acts- See the separate
Instructions for more information.
6 Receipt of refund checks. If you want to authorize a representative named online 2 to receive,BUT NOT TO ENDORSE
OR CASH, refund checks, initial here and list the name of that representative below.
Name of representative to receive refund check(s) ►
For Paperwork Reduction and Privacy Act Notice,see the separate instructions. Form 2848 (Rev.1-2002)
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NOV 26 2003 9: 15AM HP LASER,7ET 3200 p 6
Farm 2848(Rev.1-2002) Pacre2
7 Notices and communications.Original notices and other written communications will be sent to ,you and a copy to the
first,representative listed on line 2 unless you check one c r more of the boxes below.
a If you want the first representative listed on line 2 to receive the original,and yourse'f a copy,of such notices or
communications,check this box . . . . . . . . . . . - ►❑
to If you also want the second representative listed to receive a copy of such notices aid communications,check this box. ►
c If you do not want any notices or communications sent to your representative(s),check this box ►❑
8 Retentiontrevoeation of prior power(s)of attorney.The filing of this power of attorney automatically revokes all earlier
power(•;of attorney on file with the Internal Revenue Service for the same tax met--en;and years or perious covered by
this document. If you do not want to revoke a prior power of attorney,check here. . . . . . . . . . ►❑
YOU MUST ATTACH A COPY OF ANY POWER OF ATTORNEY YOU WANT TO REMAIN IN EFFECT
8 Signature of taxpayer(s). If a tax matter concerns a joint return,both husband and wife must sign if joint representation is
requested,otherwise, see the instructions, If signed by a ccrporale officer, partner, guard an, tax matters partner,executor,
receiver,administrator, or trustee on behalf of the taxpayer, I certify that I have the authority to execute this form on behalf
of the taxpayer.
► IF NOT SIGNED AND DATED, THIS POWER OF ATTORNEY WILL BE RETURNED.
_...-------"--._------'-'---"---- ------------ --- — -- --'------- --- ----_.----"------.
Signature Date 'itle (if applicable)
Print Name
— —' --------- -----•---- —' _.. — — — ---- -- ...
Signature Date Title [if applicable)
—"--- --'-"'--------------- --- ---
Print Name
Declaration of Representative
Caution; Students with a special order to represent taxpayers in Qualified Law[income Taxpayer Clinics or the Student Tax Olive
Program,see the separate instructions for Part it.
Under penalties of perjury,I declare that:
• I am not currently under suspension or disbarment from practice before the Internal Revenue Service;
• I am aware of regulations contained in Treasury Department Circular No.230(31 CFR,Part 10),as amended,concerning
the practice of attorneys,certified public accountants,enrolled agents,enrolled actuaries,and others;
• i am authorized to represent the taxpayer(s)identified in Part I for the tax matters)specified there;and
• I am one of the following:
a Attorney—a member in good standing of the bar of the highest court of the jurisdiction shown below..
b Certified Public Accountant—duly cualif'.ad to practice as a certified public accountant.in the jurisdiction shown below.
c Enrolled Agent-enrolled as an agent under the regdremehls of Treasury Department Circular No. 230,
d Officer—a bona fide officer of the taxpayer's organization.
e Full-Time Employee—a fuf:time employee of the taxpayer.
f Family Members member of the taxpayers immediate family(:.a.,spouse,parent,child,brother,or sister).
g Enrolled Actuary—enrolled as an actuary by the Joint Board for the Enrollment of Actuaries under 29 U.S.C. 1242(the
authority to practice before the Service is limited by section I0.3(d)(i)of Treasury Department Circular No.230).
Is Unenroiled Return Preparer—an unenrolled return preparer under section 10.7(c)t?)(viii)of Treasury Department Circular No.230,
► IF THIS DECLARATION OF REPRESENTATIVE IS NOT SIGNED AND DATED,THE POWER OF ATTORNEY WILL
BE RETURNED.
Designation—Insert Jurisdiction(state)or '..
above letter(a—h) Enrollment Card No. Signature Date
C A. [
a FL 07/01/01
x
Form 2848 (Roo.1-2002)
T
TRUCKEE DONNER PUBLIC UTILITY DISTRICT DEFINED BENEFIT PLAN RUCKEE DONNER PUBLIC UTILITY DISTRICT DEFINED BENEFIT PLAN
AND ALL SUPPORTING FORMS HAVE BEEN PRODUCED FOR
RONALD B.RICHARDSON
WAYNE RICHARDSON COMPANY,INC.
Copyright 2003 Sur-Gard Corbel
All Rights Reserved
..__ ..... _-- __ .....___ ...... Ili
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TABLE OF CONTENTS 5.5 DEATH BENEFITS._.......__......... ...... .......................... ....................23
ARTICLE 1 5.6 TERMINATION OF EMPLOYMENT BEFORE RETIREMENT.......................................25
DEFINITIONS 5.7 DISTRIBUTION OF BENEFITS........._........ ................ ............-.............---27
5.8 DISTRIBUTION OF BENEFITS UPON DEATH............................. 33
ARTICLE 11
ADMINISTRATION 5.9 TIME OF SEGREGATION OR DISTRIBUTION._.........._........._................___...........37
5.10 DISTRIBUTION FOR MINOR OR INCOMPETENT BENEFICIARY...-......................37
2.1 POWERS AND RESPONSIBILITIES OF THE EMPLOYER.........._.......___....._.........12 1 5.11 LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN..................................37
2.2 DESIGNATION OF ADMINISTRATIVE AUTHORITY... .............................12 5,12 EFFECT OF SOCIAL SECURITY ACT............. . ................................---.....-.38
2.3 POWERS AND DUTIES OF THE ADMINISTRATOR..........__ ..........................A3
5,13 QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION............---...................38
2A RECORDS AND REPORTS................. ............................14
2.5 APPOINTMENT OF ADVISERS............. ...................... .........14 5.14 LIMITATION OF BENEFITS ON TERMINATION............_..........._......_._......_......._._.38
2.6 PAYMENT OF EXPENSES...................... . .................... 14 ARTICLE VI
2.7 CLAIMS PROCEDURE....................... .................... ........14 CODE SECTION 415 LIMITATIONS
2.8 CLAIMS REVIEW PROCEDURE....._.............. ............................... ...............-15 6,1 ANNUAL BENEFIT............--......... . ....... ............ ......39
6.2 MAXIMUM ANNUAL BENEFIT.....-..........-
ARTICLE III ............. ....................40
ELIGIBILITY 6,3 ADJUSTMENTS TO ANNUAL BENEFIT AND LIMITATIONS ,............. ..................41
3.1 CONDITIONS OF ELIGIBILITY........_..._.. 6A ANNUAL BENEFIT NOT IN EXCESS OF$10,000....... -...........................----42
. ......... ...... .......... ........15
6,5 PARTICIPATION OR SERVICE REDUCTIONS......
12 EFFECTIVE DATE OF PARTICIPATION......................... ......... 15 .......................................43
3.3 DETERMINATION OF ELIGIBILITY................................ 16 6.6 ELIMINATION OF MULTIPLE PLAN REDUCTION....... ..........................-......43
3A TERMINATION OF ELIGIBILITY...._........ ....... ................. ............16
ARTICLE VII
15 REHIRED EMPLOYEES AND BREAKS IN SERVICE.................................................16 TRUSTEE
3.6 ELECTION NOT TO PARTICIPATE.._..._........._ ................... ..........17 T1 BASIC RESPONSIBILITIES OF THE TRUSTEE._................._.........._.......................43
ARTICLE IV 7.2 INVESTMENT POWERS AND DUTIES OF THE TRUSTEE.......................................44
CONTRIBUTION AND VALUATION 7.3 OTHER POWERS OF THE TRUSTEE................. ...........................--.........44
7.4 LOANS TO PARTICIPANTS.................... ............................ ....46
4.1 PAYMENT OF CONTRIBUTIONS.._.__..........
........--. ........ ...........17
4.2 ACTUARIAL METHODS..._......._.......... ...............................................17 T5 DUTIES OF THE TRUSTEE REGARDING PAYMENTS...__-... ..........-..................48
4.3 ROLLOVERS AND PLAN-TO-PLAN TRANSFERS FROM QUALIFIED PLANS..........18 T6 TRUSTEE'S COMPENSATION AND EXPENSES AND TAXES..................................48
T7 ANNUAL REPORT OF THE TRUSTEE................ ...... ...............................48
4A QUALIFIED MILITARY SERVICE........_................................... 19
7.8 AUDIT... ......................... . .........................................49
ARTICLE V T9 RESIGNATION,REMOVAL AND SUCCESSION OF TRUSTEE........................ ...50
BENEFITS
7,10 TRANSFER OF INTEREST........._.......
.... ....... ......... ............... .............50
6.1 RETIREMENT BENEFITS..
.................. .....20 7,11 TRUSTEE INDEMNIFICATION..................... 51
5.2 MINIMUM BENEFIT REQUIREMENT FOR TOP HEAVY PLAN...._._-...................-.....21 7.12 DIRECT ROLLOVER....... ..........
. ........--................. ............51
5.3 PAYMENT OF RETIREMENT BENEFITS........_..._........._........................................23
5.4 DISABILITY RETIREMENT BENEFITS.-......... ........................................23
........... ----------
ARTICLE Vill TRUCKEE DONNER PUBLIC UTILITY DISTRICT DEFINED BENEFIT PLAN
PLAN AMENDMENT
8.1 AMENDMENT.................. .......... m THIS AGREEMENT,hereby made and entered into this day of
by and between Truckee Donner Public Utility District
(herein referred to as the"Employer")and Joseph R.Aguera,J.Ronald Hernig,James A.
ARTICLE IX Maass,Patricia S.Sutton and Nelson Van Gunny(herein referred to as the"Trustee").
PLAN TERMINATION
WITNESSETH
91 TERMINATION....... ..........
9.2 LIMITATION OF BENEFITS ON PLAN TERMINATION....._......... ............... ...53 WHEREAS,the Employer heretofore established a Pension Plan and Trust
effective 01/01/1972,(hereinafter called the"Effective Date*)known as Truckee Donner Public
ARTICLE X Utility District Defined Benefit Plan(herein referred to as the"Plan")in recognition of the
MERGER,CONSOLIDATION OR TRANSFER OF ASSETS contribution made to its successful operation by its employees and for the exclusive benefit of
its eligible employees;and
10.1 REQUIREMENTS.........._...... ....... ................54 WHEREAS,such Plan was amended as of January 1,1987;and
ARTICLE XI
WHEREAS,under the terms of the Plan,the Employer has the ability to amend
TOP HEAVY the Plan,provided the Trustee joins in such amendment if the provisions of the Plan affecting
11.1 TOP HEAVY PLAN REQUIREMENTS.........._ .......................................54 the Trustee are amended;
11.2 DETERMINATION OF TOP HEAVY STATUS... ......................--.54 NOW,THEREFORE,effective 01/01/2001,except as otherwise provided,the
Employer and the Trustee in accordance with the provisions of the Plan pertaining to
ARTICLE XII amendments thereof,hereby amend the Plan in its entirely and restate the Plan to provide as
MISCELLANEOUS follows:
12A PARTICIPANT'S RIGHTS.._....._...... .......................... ..............57 ARTICLE I
DEFINITIONS
12,2 ALIENATION..........._..............._....... .58
1.1 'Accrued Benefit"means the retirement benefit a Participant would receive at
12.3 CONSTRUCTION OF PLAN...... ..............-........................................-...59 Normal Retirement Date based on the retirement benefit formula set forth in Section 5.1 of the
12.4 GENDER AND NUMBER..........._........__.............---...........-.............. ......59 I Plan,multiplied by a fraction,not greater than one(1),the numerator of which is the Participant's
12.5 LEGAL ACTION........... .......... ............................. ..........-..............-59 total number of Years of Service and the denominator of which is the aggregate number of Years
of Service the Participant would have accumulated if the Participant continued employment until
12.6 PROHIBITION AGAINST DIVERSION OF FUNDS._..._ .................... .........-59 Normal Retirement Age.
�
121 EMPLOYER'S AND TRUSTEE'S PROTECTIVE CLAUSE............... ...................,60 When determining a Participants Accrued Benefit,the refirernent benefit projected
12.8 INSURER'S PROTECTIVE CLAUSE......................................................... .......60
to be provided pursuant to the retirement benefit formula in Section 5.1 is the monthly benefit to
12.9 RECEIPT AND RELEASE FOR PAYMENTS....................... ........-..................60 which the Participant would be entitled if the Participant continued to earn until Normal Retirement
Age the same rate of Average Monthly Compensation upon which the Participant's retirement
12.10 ACTION BY THE EMPLOYER........._-....... ........ ......... ................-, ---60 benefit formula is based.This rate of Average Monthly Compensation is computed on the basis of
12,11 NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY....---.................�60 Average Monthly Compensation taken into amount under the Plan(but not to exceed the ten years
of service immediately preceding the determination).
12,12 HEADINGS.............-......... ...... ................-61
12.13 APPROVAL BY INTERNAL REVENUE SERVICE......._ ....... ............61 For Plan Years beginning before Code Section 411 is applicable hereto,a
12.14 UNIFORMITY............. ........... ..................... .......�61 Participant's Accrued Benefit shall be the greater of that provided by the Plan,or 1/2 of the benefit
which would have accrued had the provisions of this Section been in effect.In the event the
Accrued Benefit as of the effective date of Code Section 411 is less than that provided by this
Section,such difference shall be accrued pursuant to this Section.
Notwithstanding anything herein to the contrary,a Participant's Accrued Benefit
attributable to the retirement benefit formula at the close of any Plan Year coinciding with or next
following the Participant's attainment of Normal Retirement Age shall be equal to the monthly
—------ —------
retirement benefit formula determined pursuant to Section 5.1(d)based upon service and Average
distribution for the period beginning with the effective date and ending one year
Monthly Compensation determined at the close of any such Plan Year.
after the adoption date.
Notwithstanding the above,a Participant's Accrued Benefit derived from Employer In the case of a distribution(other than nondecreasing life annuities payable for a
contributions shall not be less than the minimum Accrued Benefit,if any,provided pursuant to i period not less than the life of a Participant or,in the case of a Pre-Retirement Survivor Annuity,
Section 5.2.
the life of the surviving spouse)that was made in a Plan Year beginning after December 31, 1994,
and before the later of(1)the adoption date of an amendment that changes the interest rate or the
1.2 "Act*means the Employee Retirement Income Security Act of 1974,as it may be
amended from time to time. mortality table assumptions,or(2)January 1,1998,the calculation shall be made by using the
interest rate determined under the regulations of the Pension Benefit Guaranty Corporation for
determining the present value of a Imp sum distribution on plan termination that were in effect on
1.3 'Actuarial Equivalent"means,effective January 1,1998,a form of benefit differing September 1,1993,and using the provisions of the Plan as in effect on the day before December
in time,period,or manner of payment from a specific benefit provided under the Plan but having 8.1994;but only ff such provisions of the Plan met the requirements of Code Section 417(e)(3)and
the same value when computed using Pre-Retirement Table:None;Post-Rebrement Table:1983
Group Annuity Mortality and Pre-Retirement Interest:7%;Post-Refirement Interest:7%. Regulation 1.417(e)-1(d)as in effect on the day before December 8,1994.
Notwithstanding the foregoing,effective with the later of(1)the adoption(Jets of an In the event this Section is amended,the Actuarial Equivalent of a Participant's
Accrued Benefit on or after the date of change shall be determined(unless otherwise permitted by
amendment that changes the interest rate or the mortality table assumptions,or(2)January 1,
law or Regulation)as the greater of(1)the Actuarial Equivalent of the Accrued Benefit as of the
1998,the mortality table and the interest rate for the purposes of determining an Actuarial date of change computed on the old basis,or(2)the Actuarial Equivalent of the total Accrued
Equivalent amount(other than nondecreasing life annutes payable for a period not less than the
life of a Participant or,in the case of a Pre-Retirement Survivor Annuity,the life of the surviving Benefit computed on the new basis.
spouse)shelf be the'Applicable Mortality Table"and the*Applicable Interest Rate"described
below.However,if prior to such effective date,the Plan used an interest rate other than the 1.4 "Administrator"means the Employer unless another person or entity has been
Pension Benefit Guaranty Corporation interest rate(or an interest rate or rates based on the designated by the Employer pursuant to Section 2.2 to administer the Plan on behalf of the
Pension Benefit Guaranty Corporation interest rate)in determining the present value of a Employer.
Participant's Accrued Benefit,the mortality table and the interest rate for the purposes of 1.5 "Affiliated Employer"means any corporation which is a member of a controlled
determining an Actuarial Equivalent amount(other than nondecreasing life annuities payable for a group of corporations(as defined in Code Section 414(b))which includes the Employer;any
period not less than the life of a Participant or,in the case of a Pre-Retirement Survivor Annuity,
the life of the surviving spouse)shall be the mortality table and the interest rate specified above trade or business(whether or not incorporated)which is under common control(as defined in
the"Applicable Mortality Table'and the"Applicable interesti
or Code Section 414(c))with the Employer;any organization(whether or not incorporated)which
Rate"described below,whichever s a member of an affiliated service group(as defined in Code Section 414(m))which includes
produces the greater benefit: the Employer;and any other entity required to be aggregated with the Employer pursuant to
Regulations under Code Section 414(0).
(a) The"Applicable Mortality Table'means the table prescribed by the
Secretary of the Treasury.Such table shall be based on the prevailing
1.6 "Aggregate Account'means,with respect to each Participant,the value of all
commissioner's standard table(described in Code Section 807(d)(5)(A))used to accounts maintained on behalf of a Participant,whether attributable to Employer or Employee
determine reserves for group annuity contracts issued on the date as of which contributions,used to determine Top Heavy Plan status under the provisions of a defined
present value is being determined(without regard to any other subparagraph of contribution plan included in any Aggregation Group(as defined in Section 11.2).
Code Section 807(d)(5)).
1.7 'Anniversary Date'means January I of each year.
(b) The"Applicable Interest Rate'means the annual rate of interest on
30-year Treasury securities determined as of the first day of the Plan Year during 1.8 "Annuity Starting Date"means,with respect to any Participant,the first day of the
which the Annuity Starting Date occurs.However,except as provided in first period for which an amount is paid as an annuity,or,in the case of a benefit not payable in
Regulations,if a Plan amendment(including this amendment and restatement)
the form of an annuity,the first day on which all events have occurred which entitles the
changes the time for determining the"Applicable Interest Rate"(including an
Participant to such benefit.
indirect change as a result of a change in the Plan Year),any distribution for which
the Annuity Starting Date occurs in the one-year period commencing at the time the "Average Monthly Compensation'means the monthly Compensation of a
after the adoption
Plan amendment is effective(if the amendment is effective on or fte 1�9
date)must use the interest rate as provided under the terms of the Plan after the Participant averaged over the 3 consecutive Calendar Years from date of employment,including
periods prior to the Effective Date of the Plan,which produce the highest monthly average.If a
effective date of the amendment,determined at either the date for determining the Participant has less than 3 consecutive Calendar Years of service from date of employment to
interest rate before the amendment or the date for determining the interest rate after
the amendment,whichever results in the larger distribution.If the Plan amendment date of termination,the Participant's Average Monthly Compensation will be based on the
is adopted retroactively(that is,the amendment is effective prior to the adoption Participant's monthly Compensation during the Participant's months of service from date of
employment to date of termination.Compensation subsequent to termination of participation
date),the Plan Must use the interest rate determination date resulting in the larger pursuant to Section 3.4 shall not be recognized.
2 3
110 "Beneficiary"means the person(or entity)designated as provided in Section 5.5 any conflict between the terms of this Plan and the terms of any contract purchased hereunder,
to receive the benefits which are payable under the Plan upon or after the death of a Participant, the Plan provisions shall control.
1,11 *Code"means the Internal Revenue Code of 1986,as amended or replaced from
time to time. 1.14 'Earliest Retirement Age'means the earliest date on which,under the Plan,the
Participant could elect to receive retirement benefits.
1.12 "Compensation*with respect to any Participant means such Participant's wages 1.15 "Early Retirement Date'means the date(prior to the Normal Retirement Date)on
for the Calendar Year ending with or within the Plan Year within the meaning of Code Section
3401(a)(for the purposes of income tax withholding at the source)but determined without which a Participant or Former Participant attains age 55,and has completed at least Ten Years
of Service with the Employer(Early Retirement Age).A Participant shall become fully Vested
regard to any rules that limit the remuneration included in wages based an the nature or location
of the employment of the services performed(such as the exception for agricultural labor in upon satisfying this requirement if still employed at Early Retirement Age,
Code Section 3401(a)(2)).Notwithstanding the foregoing,if compensation for any prior A Former Participant who separates from service after satisfying the service
determination period is taken into account in determining a Participant's benefits for the current
Plan Year,Compensation means compensation determined pursuant to the terms of the Plan requirement for Early Retirement and who thereafter reaches the age requirement contained
then in effect. herein shall be entitled to receive benefits under this Plan.
1.16 "Eligible Employee"means any Employee.
For purposes of this Section,the determination of Compensation shall be made ads
Employees of Affiliated Employers shall not be eligible to participate in this Plan
(a) including amounts which are contributed by the Employer unless such Affiliated Employers have specifically adopted this Plan in writing.
pursuant to a salary reduction agreement and which are not includible in the Employees classified by the Employer as Independent contractors who are
gross income of the Participant under Code Sections 125,132(f)(4)for Calendar
subsequently determined by the Internal Revenue Service to be Employees shall not be Eligible
Years beginning after December 31,2000,402(e)(3),402(h)(1)(B),403(b)or
Employees.
457(b),and Employee contributions described in Code Section 414(h)(2)that are
treated as Employer contributions. 1.17 "Employee"means any person who is employed by the Employer or Affiliated
Employer,and excludes any person who is employed as an independent contractor.Employee
Compensation in excess of$150,000(or such other amount provided in the
shall include Leased Employees within the meaning of Code Sections 414(n)(2)and 414(o)(2)
Code)shall be disregarded.Such amount shall be adjusted for increases in the cost of living in unless such Leased Employees are covered by a plan described in Code Section 414(n)(5)and
accordance with Code Section 401(a)(1 7)(B),except that the dollar increase in effect on such Leased Employees do not constitute more than 20%of the recipient's non-highly
January 1 of any calendar year shall be effective for the Calendar Years beginning with such compensated work force.
calendar year.If Compensation for any prior determination period is taken into account in
determining a Participant's benefits for the current Plan Year,the compensation for such poor
1,18 'Employer'means Truckee Donner Public Utility District and any successor
determination period is subject to the applicable annual compensation limit in effect for that poor which shall maintain this Plan;and any predecessor which has maintained this Plan.The
period.For this purpose,in determining benefits in Plan Years beginning on or after January 1, Employer is a governmental employer,with principal offices in the State of California.
1989,the annual compensation limit in effect for determination periods beginning before that
date is$200,000(or such other amount as adjusted for increases in the cost of living in 1.19 "Fiduciary'means any person who(a)exercises any discretionary authority or
accordance with Code Section 415(d)for determination periods beginning on or after January 1, discretionary control respecting management of the Plan or exercises any authority or control
1989 and in accordance with Code Section 401(a)(I 7)(B)for determination periods beginning respecting management or disposition of its assets,(b)renders investment advice for a fee or
on or after January 1,1994).For determination periods beginning prior to January 1,1989,the
any or has any authority or responsibility to do so,or(c)has any discretionary authority or
$200,000 limit shall apply only to Top Heavy Plan Years and shall not be adjusted.For other compensation,direct or indirect,with respect to any monies or other property of the Plan
short Calendar Year the Compensation limit shall be an amount equal to the Compensation limit discretionary responsibility in the administration of the Plan.
for the calendar year in which the Calendar Year begins multiplied by the ratio obtained by
dividing the number of full months in the short Calendar Year by twelve(12). 1.20 'Fiscal Year"means the Employer's accounting year of 12 months commencing
For Plan Years beginning after December 31, 1996,for purposes of determining on January I of each year and ending the following December 31.
Compensation,the family member aggregation rules Of Code Section 401 aftl 7)and Code 1.21 "Former Participant'means a person who has been a Participant,but who has
Section 414(q)(6)(as in effect prior to the Small Business Job Protection Act of 1996)are ceased to be a Participant for any reason.
eliminated.In determining Average Monthly Compensation,the elimination of the family
member aggregation rules are treated as having been in effect for earlier years,
122 '415 Compensation"with respect to any Participant means such Participant's
1.13 "Contract"or'Policy"means any life insurance policy,retirement income policy wages for the Calendar Year ending with or within the Plan Year within the meaning of Code
or annuity contract(group or individual)issued pursuant to the terms of the Plan,In the event of Section 3401(a)(for the purposes of income tax withholding at the source)but determined
without regard to any rules that limit the remuneration included in wages based on the nature or
4
------ -------- - --------------- ------------------
location of the employment or the services performed(such as the exception for agricultural
labor In Code Section 3401(a)(2)).
1.24 "Highly Compensated Participant"means any Highly Compensated Employee
For"limitation years"beginning after December 31,1997,for purposes of this who is eligible to participate in the component of the Plan being tested.
Section,the determination of"415 Compensation"shall include any elective deferral(as defined 1.25 'Hour of Service"means(1)each hour for which an Employee is directly or
in Code Section 402(g)(3)),and any amount which is contributed or deferred by the Employer at indirectly compensated or entitled to compensation by the Employer for the performance of
the election of the Participant and which is not includible in the gross income of the Participant duties(these hours will be credited to the Employee for the computation period in which the
by reason of Code Sections 125,132(f)(4)for'limitation years"beginning after December 31, duties are performed);(2)each hour for which an Employee is directly or indirectly
2000 or 457. compensated or entitled to compensation by the Employer(irrespective of whether the
employment relationship has terminated)for reasons other than performance of duties(such as
1.23 "Highly Compensated Employee"means,for Plan Years beginning after vacation,holidays,sickness,jury duty,disability,lay-off,military duty or leave of absence)
December 31,1996,an Employee described in Code Section 414(q)and the Regulations during the applicable computation period(these hours will be calculated and credited pursuant
thereunder,and generally means any Employee who: to Department of Labor regulation 2530.200b-2 which is incorporated herein by reference);
(3)each hour for which back pay is awarded or agreed to by the Employer without regard to
(a) was a"five percent owner"as defined in Section 1.27(c)at any mitigation of damages(these hours will be credited to the Employee for the computation period
time during the"determination year"or"look-back year"or or periods to which the award or agreement pertains rather than the computation period in
which the award,agreement or payment is made).The same Hours of Service shall not be
(b) for the"look-back year"had"415 Compensation"from the credited both under(1)or(2),as the case may be,and under(3).
Employer in excess of$80,000.The$80,000 amount is adjusted at the same
time and In the same manner as under Code Section 415(d),except that the Notwithstanding(2)above,(I)no more than 501 Hours of Service are required to
base period is the calendar quarter ending September 30,1996. be credited to an Employee on account of any single continuous period during which the
Employee performs no duties(whether or not such period occurs in a single computation
The"determination year"means the Plan Year for which testing is being period);(ii)an hour for which an Employee is directly or indirectly paid,or entitled to payment,
performed,and the"look-back year"means the immediately preceding twelve(12)month on account of a period during which no duties are performed is not required to be credited to the
peon' Employee if such payment is made or due under a plan maintained solely for the purpose of
complying with applicable worker's compensation,or unemployment compensation or disability
A highly compensated former Employee is based r t the rules applicable a to
PP insurance laws;and(iii)Hours of Service are not required to be credited for a payment which
determining Highly Compensated Employee status as in effect for the"determination year,"in solely reimburses an Employee for medical or medically related expenses incurred by the
accordance with Regulation 1.414(q)-lT,A-4 and IRS Notice 97-45(or any superseding Employee.
guidance).
j For purposes of(2)above,a payment shall be deemed to be made by or due
In determining whether an Employee is a Highly Compensated Employee for a from the Employer regardless of whether such payment is made by or due from the Employer
Plan Year beginning in 1997,the amendments to Code Section 414(q)stated above are treated directly,or indirectly through,among others,a trust fund,or insurer,to which the Employer
as having been in effect for years beginning in 1996, contributes or pays premiums and regardless of whether contributions made or due to the trust
fund,insurer,or other entity are for the benefit of particular Employees or are on behalf of a
For purposes of this Section,for Plan Years beginning prior to January 1, 1998, group of Employees in the aggregate.
the determination of"415 Compensation"shall he made by including amounts that would
otherwise be excluded from a Participant's gross income by reason of the application of Code For purposes of this Section,Hours of Service will be credited for employment
Sections 125,402(e)(3),402(h)(1)(6),and,in the case of Employer contributions made with other Affiliated Employers.The provisions of Department of Labor regulations
pursuant to a salary reduction agreement,Code Section 403(b). 2530.200b-2(b)and(c)are incorporated herein by reference.
In determining who is a Highly Compensated Employee,Employees who are 1.26 "Investment Manager"means an entity that(a)has the power to manage,
non-resident aliens and who received no earned income(within the meaning of Code acquire,or dispose of Plan assets and(b)acknowledges fiduciary responsibility to the Plan in
Section 91l(d)(2))from the Employer constituting United States source income within the writing.Such entity must be a person,firm,or corporation registered as an investment adviser
meaning of Code Section 861(a)(3)shall not be treated as Employees.Additionally,all Affiliated under the Investment Advisers Act of 1940,a bank,or an insurance company.
Employers shall be taken into account as a single employer and Leased Employees within the
meaning of Code Sections 414(n)(2)and 414(0)(2)shall be considered Employees unless such 1.27 "Key Employee"means an Employee as defined in Code Section 416(i)and the
Leased Employees are covered by a plan described in Code Section 414(n)(5)and are not Regulations thereunder.Generally,any Employee or former Employee(as well as each of the
covered in any qualified plan maintained by the Employer.The exclusion of Leased Employees Employee's or former Employee's Beneficiaries)is considered a Key Employee if the Employee,
for this purpose shall be applied on a uniform and consistent basis for all of the Employer's at any time during the Plan Year that contains the"Determination Date"or any of the preceding retirement plans.Highly Compensated Former Employees shall be treated as Highly 9
9 Y four(4)Plan Years,has been included in one of the following categories:
Compensated Employees without regard to whether they performed services during the
"determination year."
6
(a) an officer of the Employer(as that term is defined within the which are attributable to services performed for the recipient Employer shall be treated as
meaning of the Regulations under Code Section 416)having annual'415 provided by the recipient Employer.Furthermore,Compensation for a Leased Employee shall
Compensation"greater than 50 percent of the amount in effect under Code only include Compensation from the leasing organization that is attributable to services
Section 415(b)(1)(A)for any such Plan Year. performed for the recipient Employer.A Leased Employee shall not be considered an Employee
(b) one of the ten employees having annual°415 Compensation"from of the recipient Employer:
the Employer for a Plan Year greater than the dollar limitation in effect under (a) if such employee is covered by a money purchase pension plan
Code Section 415(c)(1)(A)for the calendar year in which such Plan Year ends providing:
and owning(or considered as owning within the meaning of Code Section 318)
both more than one-half percent interest and the largest interests in the (1) a nonintegrated employer contribution rate of at least 10%of
Employer, compensation,as defined in Code Section 415(c)(3),but,for Plan Years
beginning prior to January 1,1998,including amounts which are
(c) a"five percent owner'of the Employer."Five percent owner" contributed by the Employer pursuant to a salary reduction agreement
means any person who owns(or is considered as owning within the meaning of and which are not includible in the gross income of the Participant under
Code Section 318)more than five percent(5%of the outstanding stook of the Code Sections 125,402(e)(3),A02(h)(1)(B),403(b)or 457(b),and
Employer or stock possessing more than five percent(5%)of the total combined Employee contributions described in Code Section 4 r 457(b that are
voting power of all stock of the Employer or,in the case of an unincorporated treated as Employer contributions,and,for Plan Years beginning riot to
business,an g g p
y person who owns more than five percent e o n the capital n January 1,2001,excluding amounts that are not includible in gross
profits interest in the Employer.In determining percentage ownership hereunder, income under Code Section 132(f)(4);
employers that would otherwise be aggregated under Code Sections 414(b),(c),
(m)and(o)shall be treated as separate employers. (2) immediate participation
(tl) a"one percent owner"of the Employer having an annual"415 (3) full and Immediate vesting;and
Compensation"from the Employer of more than$150,000."One percent owner"
means any person who owns(or is considered as owning within the meaning of (b) if Leased Employees do not constitute more than 20%of the
Code Section 318)more than one percent(1%)of the outstanding stock of the recipient Employer's nonhigfily compensated work force.
Employer or stock possessing more than one percent(1%)of the total combined
voting power of all stock of the Employer or,in the case of an unincorporated 1,30 "Non-Highly Compensated Participant"means,for Plan Years beginning after
business,any person who owns more than one percent(1%)of the capital or December 31,1996,any Participant who is not a Highly Compensated Employee.
profits interest in the Employer.In determining percentage ownership hereunder,
employers that would otherwise be aggregated under Code Sections 414(b),(c), 1.31 "Non-Key Employee"means any Employee or former Employee(and such
(m)and(0)shall be treated as separate employers.However,in determining Employee's or former Employee's Beneficiaries)who is not,and has never been a Key
whether an individual has"415 Compensation"of more than$150,000,"415 Employee.
Compensation"from each employer required to be aggregated under Code
Sections 414(b),(c),(m)and(a)shall be taken into account. 1.32 "Normal Retirement Age"means the Participant's 65th birthday.A Participant
shall become fully Vested in the Participant's Normal Retirement Benefit upon attaining Normal
For purposes of this Section,the determination of"415 Compensation"shall be Retirement Age.
made by including amounts which are contributed by the Employer pursuant to a salary
reduction agreement and which are not includible in the gross income of the Participant under 1.33 "Normal Retirement Date"means the Participant's Normal Retirement Age.
Code Sections 125,132(f)(4)for Calendar Years beginning after December 31,2000,402(e)(3),
402(h)(1)(B),403(b)or 457(b),and Employee contributions described in Code Section 414(h)(2) 1.34 "1-Year Break in Service"means the applicable computation period during which
that are treated as Employer contributions. an Employee has not completed more than 500 Hours of Service with the Employer.Further,
solely for the purpose of determining whether a Participant has incurred a 1-Year Break in
1,28 "Late Retirement Date"means a Participant's actual Retirement Date after Service,Hours of Service shall be recognized for"authorized leaves of absence"and"maternity
having reached Normal Retirement Date. and paternit
y y eaves of absence-"Years of Service and 1-Year Breaks in Service shall be
L measured on the same computation period,29 "leased Employee"means,for Plan Years beginning after December 31, 1996, ''
any person(other than an Employee of the recipient Employer)who pursuant to an agreement "Authorized leave of absence"means an unpaid,temporary cessation from
between the recipient Employer and any other person or entity("leasing organization")has active employment with the Employer pursuant to an established nondiscriminatory policy,
performed services for the recipient(or for the recipient and related persons determined in whether occasioned by illness,military service,or any other reason.
accordance with Code Section 414(n)(6))on a substantially full time basis for a period of at least
one year,and such services are performed under primary direction or control by the recipient A"maternity or paternity leave of absence"means,for Plan Years beginning after
Employer.Contributions or benefits provided a Leased Employee by the leasing organization December 31,1984,an absence from work for any period by reason of the Employee's
8 9
pregnancy,birth of the Employee's child,placement of a child with the Employee in connection regard to the age increase factor and as if the early retirement age under Section 216(I)(2)of
with the adoption of such child,or any absence for the purpose of caring for such child for a such Act were 62,
period immediately following such birth or placement.For this purpose,Hours of Service shall
be credited for the computation period in which the absence from work begins,only if credit 1 45 "Terminated Participant"means a person who has been a Participant,but whose
therefore is necessary to prevent the Employee from incurring a 1-Year Break in Service,or,in employment has been terminated other than by death,Total and Permanent Disability or
any other case,in the immediately following computation period.The Hours of Service credited retirement.
for a"maternity or paternity leave of absence'shall be those which would normally have been
credited but for such absence,or,in any case in which the Administrator is unable to determine 1.46 "Top Heavy Plan"means a plan described in Section 11.2(a).
such hours normally credited,eight(8)Hours of Service per day.The total Hours of Service
required to be credited for a"maternity or paternity leave of absence"shall not exceed the 1.47 "Top Heavy Plan Year"means a Plan Year during which the Plan is a Top Heavy
number of Hours of Service needed to prevent the Employee from incurring a 1-Year Break in Plan.
Service.
1,48 "Total and Permanent Disability"means a physical or mental condition of a
1.35 "Participant"means any Eligible Employee who participates in the Plan and has Participant resulting from bodily injury,disease,or mental disorder which renders such
not for any reason become ineligible to participate further in the Plan. Participant incapable of continuing usual and customary employment with the Employer.The
disability of a Participant shall be determined by a licensed physician chosen by the
1.36 "Participant's Transfer/Rollover Account"means the account established and Administrator.The determination shall be applied uniformly to all Participants,
maintained by the Administrator for each Participant with respect to the total interest in the Plan
resulting from amounts transferred to this Plan from a direct plan-to-plan transfer and/or with 1.49 "Trustee'means the person or entity named as trustee herein or in any separate
respect to such Participant's interest in the Plan resulting from amounts transferred from another trust forming a part of this Plan,and any successors.
qualified plan or"conduit"Individual Retirement Account in accordance with Section 4.3.
1.50 'Trust Fund"means the assets of the Plan and Trust as the same shall exist from
A separate accounting shall be maintained with respect to that portion of the time to time.
Participant's Transfer/Rollover Account attributable to transfers(within the meaning of Code
Section 414(I))and"rollovers." 1.51 "Vested'means the portion of a Participant's benefits under the Plan that are
1.37 "Plan"means this instrument,including all amendments thereto. nonforfebable.
1.52 "Year of Service"means the computation period of twelve(12)consecutive
1.38 "Plan Year"means the Plan's accounting year of twelve(12)months months,herein set forth,during which an Employee has at least 1000 Hours of Service.
commencing on January 1 of each year and ending the following December 31.
For purposes of eligibility for participation,the Initial computation period shall
1.39 "Pre-Retirement Survivor Annuity"means an immediate annuity for the life of the begin with the date on which the Employee first performs an Hour of Service.The participation
surviving spouse of a Participant who dies prior to the Participant's Annuity Starting Date. computation period beginning after a 1-Year Break in Service shall be measured from the date
on which an Employee again performs an Hour of Service.The participation computation period
1.40 'Present Value of Accrued Benefit'means the Actuarial Equivalent lump-sum shall shift to the Plan Year which includes the anniversary of the date on which the Employee
regoing, ! first performed an Hour of Service.An Employee who is credited with the required Hours of
amount of a Participant's Accrued Benefit at date of valuation.Notwithstanding the fo
the Present Value of Accrued Benefit for the determination of Top Heavy Plan status shall be Service in both the initial computation period(or the computation period beginning after a
made exclusively pursuant to the provisions of Section 11.2.
1-Year Break in Service)and the Plan Year which includes the anniversary of the date on which
the Employee first performed an Hour of Service,shall be credited with two(2)Years of Service
t.41 "Regulation"means the Income Tax Regulations as promulgated by the for purposes of eligibility to participate.
Secretary of the Treasury or a delegate of the Secretary of the Treasury,and as amended from
time to time. For vesting purposes,the computation periods shall be the Plan Year,including
1.42 "Retired Participant"means a person who has been a Participant,but who has periods prior to the Effective Date of the Plan.
become entitled to retirement benefits under the Plan. The computation period shall be the Plan Year if not otherwise set forth herein.
1.43 "Retirement Date"means the date as of which a Participant retires for reasons Notwithstanding the foregoing,for any short Plan Year,the determination of
other than Total and Permanent Disability,whether such retirement occurs on a Participant's whether an Employee has completed a Year of Service shall be made in accordance with
Normal Retirement Date,Early or Late Retirement Date(see Section 5.1). Department of Labor regulation 2530.203-2(c).However,in determining whether an Employee has
completed a Year of Service for benefit accrual purposes or for purposes of Section 5.1(a)in the
1.44 "Social Security Retirement Age"means the age used as the retirement age short Plan Year,the number of the Hours of Service required shall be proportionately reduced
under Section 216(I)of the Social Security Act,except that such section shall be applied without based on the number of full months in the short Plan Year.
10
Years of Service with any Affiliated Employer shall be recognized.
determination by the Administrator shall be conclusive and binding upon all persons.The
Administrator may establish procedures,correct any defect,supply any information,or reconcile
ARTICLE 11
any inconsistency in such manner and to such extent as shall be deemed necessary or
ADMINISTRATION advisable to carry out the purpose of the Plan:provided,however,that any procedure,
discretionary act,interpretation Or construction shall be done in a nondiscriminatory manner
2.1 POWERS AND RESPONSIBILITIES OF THE EMPLOYER based upon uniform principles consistently applied and shall be consistent with the intent that
the Plan shall continue to be deemed a qualified plan under the terms of Code Section 401(a),
(a) In addition to the general powers and responsibilities Otherwise
provided for in this Plan,the Employer shall be empowered to appoint and and shall comply with the terms of the Act and all regulations issued pursuant thereto.The
Administrator shall have all powers necessary or appropriate to accomplish the Administrators
remove the Trustee and the Administrator from time to time as it deems duties under the Plan.
necessary for the proper administration of the Plan to ensure that the Plan is
being operated for the exclusive benefit of the Participants and their Beneficiaries The Administrator shall be charged with the duties of the general administration
in accordance with the terms of the Plan,the Code,and the Act.The Employer of the Plan as set forth under the terms of the Plan,including,but not limited to,the following:
may appoint counsel specialists,advisers,agents(including any nonfiduciary
agent)and other persons as the Employer deems necessary or desirable in (a) the discretion to determine all questions relating to the eligibility of
connection with the exercise of its fiduciary duties under this Plan.The Employer
may compensate such agents or advisers from the assets of the Plan as fiduciaryEmployees to participate or remain a Participant hereunder and to receive
benefits under the Plan;
expenses(but not including any business(sailor)expenses of the Employer),to
the extent not paid by the Employer, (b) to compute,certify,and direct the Trustee with respect to the
(b) The Employer shall establish a'funding policy and method,"i.e.,it amount and the kind of benefits to which any Participant shall be entitled
hereunder;
shall determine whether the Plan has a short run need for liquidity haq,,to pay
benefits)or whether liquidity is a long run goal and investment growth(and (c) to authorize and direct the Trustee with respect to all discretionary
stability of same)is a more current need,or shall appoint a qualified person to do or otherwise directed disbursements from the Trust:
so,The Employer or its delegate shall communicate such needs and goals to the
Trustee,who shall coordinate such Plan needs with its investment policy.The
(d) to maintain all necessary records for the administration of the
communication of such a'funding policy and method'shall not,however,
Plan;
constitute a directive to the Trustee as to the investment of the Trust Funds.
Such"funding policy and method'shall be consistent with the objectives of this
Plan and with the requirements of Title I of the Act. (a) to interpret the provisions of the Plan and to make and publish
(c) The Employer shall periodically review the performance of any such rules for regulation of the Plan as are consistent with the terms hereof;
Fiduciary or other person to whom duties have been delegated or allocated by it (f) to determine the size and type of any Contract to be purchased
from any insurer and to designate the insurer from which such Contract shall be
under the provisions of this Plan or pursuant to procedures established
purchased,All Policies shall be issued on a uniform basis as of each Anniversary
hereunder.This requirement may be satisfied by formal periodic review by the Date with respect to all Participants under similar circumstances;
Employer or by a qualified person specifically designated by the Employer,
through day-to-day conduct and evaluation,or through other appropriate ways. (g) to compute and certify to the Employer and to the Trustee from
2�2 DESIGNATION OF ADMINISTRATIVE AUTHORITY time to time the sums of money necessary or desirable to be contributed to the
Plan;
The Employer shall be the Administrator.The Employer may appoint any person,
mn to consult with the Employer and the Trustee regarding the short
including,but not limited to,the Employees of the Employer,to perform the duties of the and long-term liquidity needs of the Plan in order that the Trustee can exercise
Administrator,Any person so appointed shall signify acceptance by filing written acceptance
any investment discretion in a manner designed to accomplish specific
with the Employer.Upon the resignation or removal of any individual performing the duties of
the Administrator,the Employer may designate a successor. objectives;
2.3 POWERS AND DUTIES OF THE ADMINISTRATOR (I) to prepare and implement a procedure for notifying Participants
and Beneficiaries of their rights to elect joint and survivor annuities and
Pre-Retirement Survivor Annuities as required by the Act and regulations
The primary responsibility of the Administrator is to administer the Plan for the thereunder;
exclusive benefit of the Participants and their Beneficiaries,subject to the specific terms of the
Plan.The Administrator shall administer the Plan in accordance with its terms and shall have
0) to determine the validity of,and take appropriate action with
the power and discretion to construe the terms of the Plan and to determine all questions arising
in connection with the administration,interpretation,and application of the Plan.Any such respect to,any qualified domestic relations order received by it:and
12 13
1
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(k) to assist any Participant regarding the Participant's rights, and arguments in support of the claim.At the hearing(or prior thereto upon five(5)business
benefits,or elections available under the Plan. days written notice to the Administrator)the claimant or the claimant's representative shall have
an opportunity to review all documents in the possession of the Administrator which are
2.4 RECORDS AND REPORTS pertinent to the claim at issue and its disallowance.Either the claimant or the Administrator may
cause a court reporter to attend the hearing and record the proceedings.In such event,a
The Administrator shall keep a record of all actions taken and shall keep all other complete written transcript of the proceedings shall be furnished to both parties by the court
books of account,records,policies,and other data that may be necessary for proper reporter.The full expense of any such court reporter and such transcripts shall be borne by the
administration of the Plan and shall be responsible for supplying all information and reports to party causing the court reporter to attend the hearing.A final decision as to the allowance of the
the Internal Revenue Service,Department of Labor,Participants,Beneficiaries and others as claim shall be made by the Administrator within sixty(60)days of receipt of the appeal(unless
required by law.
there has been an extension of sixty(60)days due to special circumstances,provided the delay
and the special circumstances occasioning it are communicated to the claimant within the Sixty
2,5 APPOINTMENT OF ADVISERS
(60)day period).Such communication shall be written in a manner calculated to be understood
The Administrator,or the Trustee with the consent of the Administrator,may by the claimant and shall include specific reasons for the decision and specific references to the
pertinent Plan provisions on which the decision is based.
appoint counsel,specialists,advisers,agents(including nonfiduciary agents)and other persons
as the Administrator or the Trustee deems necessary or desirable in connection with the
ARTICLE III
administration of this Plan,including but not limited to agents and advisers to assist with the
ELIGIBILITY
administration and management of the Plan,and thereby to provide,among such other duties
as the Administrator may appoint,assistance with maintaining Plan records and the providing of 3A CONDITIONS OF ELIGIBILITY
Investment information to the Plan's investment fiduciaries.
Any Eligible Employee who has completed one(1)Year of Service shall be
2.6 PAYMENT OF EXPENSES eligible to participate hereunder as of the date such Employee has satisfied such requirements.
by amendment and restatement shall continue to participate in the Plan.
All expenses of administration may be paid out of the Trust Fund unless paid However,any Employee who was a Participant in the Plan prior to the effective date of this
the Employer.Such expenses shall include any expenses incident to the functioning of the
Administrator,or any person or persons retained or appointed by any named Fiduciary incident 3.2 EFFECTIVE DATE OF PARTICIPATION
to the exercise of their duties under the Plan,including,but not limited to,fees of accountants,
counsel,investment Managers,and other specialists and their agents,the costs of any bonds An Eligible Employee shall become a Participant effective as of the date on
required pursuant to Act Section 412,and other costs of administering the Plan.Until paid,the which the Employee satisfies the eligibility requirements of Section 3 1,
expenses shall constitute a liability of the Trust Fund.
3.3 DETERMINATION OF ELIGIBILITY
2,7 CLAIMS PROCEDURE
The Administrator shalt determine the eligibility of each Employee for participation in
Claims for benefits under the Plan may be filed in writing with the Administrator. the Plan based upon information furnished by the Employer.Such determination shall be
Written notice of the disposition of a claim shall be furnished to the claimant within ninety(90) conclusive and binding upon all persons,as long as the same is made pursuant to the Plan and the
days after the application is filed,or such period as is required by applicable law or Department Act,Such determination shall be subject to review pursuant to Section 2.8.
of Labor regulation.In the event the claim is denied,the reasons for the denial shall be
Specifically set forth in the notice in language calculated to be understood by the claimant, 3A TERMINATION OF ELIGIBILITY
pertinent provisions of the Plan shall be cited,and,where appropriate,an explanation as to how
the claimant can perfect the claim will be provided.In addition,the claimant shall be furnished In the event a Participant shall go from a classification of an Eligible Employee to an
with an explanation of the Plan's claims review procedure. ineligible Employee,such Former Participant shall continue to vest in the Plan for each Year of
Service completed while a noriefigible Employee,until such time as the Former Participant's
2.8 CLAIMS REVIEW PROCEDURE Accrued Benefit shall be forfeited or distributed pursuant to the terms of the Plan.
Any Employee,former Employee,or Beneficiary of either,who has been denied 3.5 REHIRED EMPLOYEES AND BREAKS IN SERVICE
a benefit by a decision of the Administrator pursuant to Section 2.7 shall be entitled to request
the Administrator to give further consideration to a claim by filing with the Administrator a written (a) If any Participant becomes a Former Participant due to severance
request for a hearing.Such request,together with a written statement of the reasons why the from employment with the Employer and is reemployed by the Employer before a
claimant believes the claim should be allowed,shall be filed with the Administrator no later than 1-Year Break in Service occurs,the Former Participant shall become a
sixty(60)days after receipt of the written notification provided for in Section 2.7.The Participant as of the reemployment date.
Administrator shall then conduct a hearing within the next sixty(60)days,at which the claimant
may be represented by an attorney or any other representative of such claimant's choosing and (b) If any Participant becomes a Former Participant due to severance
expense and at which the claimant shall have an opportunity to submit written and oral evidence from employment with the Employer and is reemployed after a 1-Year Break in
14 15
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Service has occurred,Years of Service shall include years of Service prior to the j ARTICLE IV
1-Year Break in Service subject to the following rules: CONTRIBUTION AND VALUATION
(1) In the case of a Former Participant who under the Plan does not 4.1 PAYMENT OF CONTRIBUTIONS
have anonforfeitable right to any interest in the Plan resulting from
Employer contributions,Years of Service before a period of 1-Year Break No contribution shall be required under the Plan from any Participant.The
in Service will not be taken into account if the number of consecutive Employer shall pay to the Trustee from time to time such amounts in cash as the Administrator and
i-Year Breaks in Service equal or exceed the greater of(A)five(5)or Employer shall determine to be necessary to provide the benefits under the Plan determined by the
(B)the aggregate number of pre-break Years of Service.Such aggregate application of accepted actuarial methods and assumptions.The method of funding shall be
number of Years of Service will not include any Years of Service consistent with Plan objectives.
disregarded under the preceding sentence by reason of prior 1-Year
Breaks in Service. 4.2 ACTUARIAL METHODS
(2) A Former Participant who has not had Years of Service before a In establishing the liabilities under the Plan and contributions thereto,the enrolled
1-Year Break in Service disregarded pursuant to(1)above,shall actuary will use such methods and assumptions as will reasonably reflect the cost of the benefits.
participate in the Plan as of the date of reemployment The Plan assets are to be valued on the last day of the Plan Year(or on any other date determined
by the Administrator)using any reasonable method of valuation that takes into account fair market
(c) If any Participant becomes a Former Participant due to severance value pursuant to Regulations.There must be an actuarial valuation of the Plan at least once every
of employment with the Employer and again becomes a Participant,such year.
renewed participation shall not result in duplication of benefits.Accordingly,if
such Participant has received a distribution of a Vested Accrued Benefit under L3 ROLLOVERS AND PLAN-TO-PLAN TRANSFERS FROM QUALIFIED PLANS
the Plan by reason of prior participation(and such distribution has not been
repaid to the Plan with Interest within a period of the earlier of hive(5)years after (a) With the consent of the Administrator,amounts may be
the first date on which the Participant Is subsequently reemployed by the transferred(within the meaning of Code Section 414(I))to this Plan from other
Employer or the close of the first period of five(5)consecutive 1-Year Breaks in tax qualified plans under Code Section 401(a)by Eligible Employees,provided
Service commencing after the distribution),the Participant's Accrued Benefit shall the trust from which such funds are transferred permits the transfer to be made
be reduced by the Actuarial Equivalent(at the date of distribution)of the Present and the transfer will not jeopardize the tax exempt status of the Plan or Trust or
Value of the Accrued Benefit as of the date of distribution.Any repayment by a create adverse tax consequences for the Employer.Prior to accepting any
Participant shall be equal to the total of: transfers to which this Section applies,the Administrator may require an opinion
of counsel that the amounts to be transferred meet the requirements of this
(1) the amount of the distribution, - Section.The amounts transferred shall be considered an additional Accrued
Benefit and set up in a separate account herein referred to as a Participant's
(2) interest on such distribution compounded annually at the rate of five Transfer/Rollover Account.Furthermore,for vesting purposes,the Participant's
percent(5%)per annum from the date of distribution to the date of portion of the Participant's Transfer/Rollover Account attributable to any transfer
repayment or to the last day of the first Plan Year ending on or after shall be subject to Section 5.6(b).
December 31,1987,if earlier,and
Except as permitted by Regulations(including Regulation
(3) interest on the sum of(1)and(2)above compounded annually at 1.411(d)-4),amounts attributable to elective contributions(as defined In
the rate of one-hundred-twenty percent(120%)of the federal mid-term rate Regulation 1.401(k)-1(g)(3)),including amounts treated as elective contributions,
(as in effect under Code Section 1274 for the first month of a Plan Year) which are transferred from another qualified plan in a plan-to-plan transfer(other
from the beginning of the first Plan Year beginning after December 31,1987 than a direct rollover)shall be subject to the distribution limitations provided for in
or the date of distribution,whichever Is later,to the date of repayment. Regulation 7.401(k)-1(tl).
3.6 ELECTION NOT TO PARTICIPATE (b) With the consent of the Administrator,the Plan may accept a
"rollover"by Eligible Employees,provided the"rollover"will not jeopardize the tax
An Employee,for Plan years beginning or after the later of the adoption date exempt status of the Plan or create adverse tax consequences for the Employer.
effective date of this amendment and restatement,may,,subject to the approval of the Employerr,, Prior to accepting any"rollovers"to which this Section applies,the Administrator
elect voluntarily not to participate in the Plan.The election not to participate must be irrevocable may require the Employee to establish(by providing opinion of counsel or
and communicated to the Employer,in writing,within a reasonable period of time before the otherwise)that the amounts to be rolled over to this Plan meet the requirements
beginning of the first Plan Year. of this Section.The amounts rolled over shall be set up in a separate account
herein referred to as a"Participant's Transfer/Rollover Account"Such account
shall be fully Vested at all times and shall not be subject to forfeiture for any
reason.
16 17
a transfer)shall only be permitted If it will not result in the elimination or reduction
For purposes of this Section,the term"qualified plan"shall mean of any"Section 411(d)(6)protected benefit"as described in Section 8.1.
any tax qualified plan under Code Section 401(a),or,any other plans from which
distributions are eligible to be rolled over into this Plan pursuant to the Code.The 4A QUALIFIED MILITARY SERVICE
term"rollover"means:it amounts transferred to this Plan directly from another
qualified plan;(it)distributions received by an Employee from other'qualified Notwithstanding any provision of this Plan to the contrary,effective
plans"which are eligible for tax-free rollover to a"qualified plan"and which are December 12, 1994,contributions,benefits and service will be provided in accordance with
transferred by the Employee to this Plan within sixty(60)days following receipt Code Section 414(u).
thereof;(ill)amounts transferred to this Plan from a conduit individual retirement
account provided that the conduit individual retirement account has no assets ARTICLE V
other than assets which(A)were previously distributed to the Employee by BENEFITS
another'qualified plan,"(B)were eligible for tax-free rollover to a"qualified plan" !
and(C)were deposited in such conduit individual retirement account within sixty 5.1 RETIREMENT BENEFITS
(60)days of receipt thereof;(iv)amounts distributed to the Employee from a
conduit individual retirement account meeting the requirements of clause (a) The amount of monthly retirement benefit to be provided for each
hii)above,and transferred by the Employee to this Plan within sixty(60)days of ! Participant who retires on the Participant's Normal Retirement Date shall be equal
receipt thereof from such conduit individual retirement account;and(v)any other to the Participant's Accrued Benefit(herein called the Participant's Normal
amounts which are eligible to be rolled over to this Plan pursuant to the Code. Retirement Benefit),A Participant's Accrued Benefit is based on a retirement benefit
formula equal to 40%of such Participant's Average Monthly Compensation,plus
(ru Amounts in t Participant's of this Plan and
Account shall be wnhel .5%of Average Monthly Compensation for each year of service in excess of 20
by the Trustee pursuant to the provisions of this Plan antl may not.be withdrawn years at Normal Retirement Age,computed to the nearest cent.For Participants
by,or distributed to the Participant,in whole or in part,except as provided in who are projected to have earned less than 20 Years of Service as of the end of the
paragraph(d)of this Section.The Trustee shall have no duty or responsibility to Plan Year in which they attain Normal Retirement Age,the percentage above shall
inquire as to the propriety of the amount,value or type of assets transferred,nor be reduced by one-twentieth for each such Year of Service less than 20 at age 65.
to conduct any due diligence with respect to such assets;provided,however,that
such assets are otherwise eligible to be held by the Trustee under the terms of The"Normal Retirement Benefit"of each Participant shall not be
this Plan. less than the largest periodic benefit that would have been payable to the
Participant upon separation from service at or prior to Normal Retirement Age under
(d) At such date when the Participant the Participant's Beneficiary the Plan exclusive of social security supplements,premiums an disability or term
shall be entitled to receive benefits,the Participant's Transfer(RolloverAccourit insurance,and the value of disability benefits not in excess of the"Normal
shall be used to provide additional benefits to the Participant or the Participant's Retirement Benefit"For purposes of comparing periodic benefits in the same form,
Beneficiary.Additionally,the Administrator,at the election of the Participant,shall commencing prior to and at Normal Retirement Age,the greater benefit is
direct the Trustee to distribute all or a portion of the amount credited to the determined by converting the benefit payable prior to Normal Retirement Age into
Participant's Transfer/Rollover Account(other than any direct or indirect transfers the same form of annuity benefit payable at Normal Retirement Age and comparing
as that term is defined and interpreted under Code Section 401(a)(11)and the the amount of such annuity payments.In the case of a Top Heavy Plan,the
Regulations thereunder)from a defined benefit plan,money purchase plan "Normal Retirement Benefit"shall not be smaller than the minimum benefit to which
(Including a target benefit plan),stock bonus or profit sharing plan-Any the Employee is entitled under Section 5.2.
distributions of amounts held in a Participant's Transfer/Rollover Account shall be
made in a manner which is consistent with and satisfies the provisions of Section ! (b) A Participant may elect to retire on an Early Retirement Date.In the
57,including,but not limited to,all notice and consent requirements of Code event that a Participant makes such an election,such Participant shall be entitled to
Sections 417 and 411(a)(11)and the Regulations thereunder.Furthermore,such receive an Early Retirement Benefit equal to the Participant's Accrued Benefit
amounts shall be considered as part of a Participant's benefit in determining payable at the Participant's Normal Retirement Date.However,if a Participant so
whether an involuntary cash-out of benefits without Participant consent may be ejects,such Participant may receive payment of an Early Retirement Benefit
made. commencing on the first day of the month coinciding with or next following the
Participant's Early Retirement Date,which Early Retirement Benefit shall equal the
(e) The Administrator may direct that Employee transfers and greater of(1)the Participant's Accrued Benefit reduced by 1/151h for each of the
rollovers made after a Valuation Date segregated into separate account for first five(5)years and 1/30th for each of the next five(5)years and reduced
each Participant until such time as the allocations pursuantt to this Plan have ! actuarially for each additional year thereafter that the first day of the month on which
been made,at which time they may remain segregated or be invested as part of the Participant's Early Retirement Benefit commences precedes the Participant's
the general Trust Fund. Normal Retirement Date,or(2)the Actuarial Equivalent of the Participant's Accrued
Benefit if such benefit is distributed in a form other than a nondecreasing life annuity
(f) .Notwithstanding anything herein to the contrary,a transfer directly payable for a period not less than the Irfe of such Participant.
to this Plan from another qualified plan(or a transaction having the effect of such
18 9
(c) The Normal Retirement Benefit payable to a Participant pursuant to Participant.Furthermore,such minimum benefit shall be provided regardless of
this Section 5A shall be a monthly pension commencing on the Participant's whether such Non-Key Employee is employed on a specified date.
Retirement Date and continuing for life.However,the form of distribution of such
benefit shall be determined pursuant to the provisions of Section 5.7. (c) For purposes of this Section,Years of Service for any Plan Year
beginning before January 1,1984,or for any Plan Year during which the Plan was
(d) At the request of a Participant,the Participant may be continued in not a Top Heavy Plan shall be disregarded.
employment beyond Normal Retirement Dale.In such event,upon request the
Participant may commence receiving the payment of the Participant's monthly fall For purposes of this Section,"415 Compensation"for any"limitation
retirement benefits provided for in the Plan as though the Participant had actually year"ending in a Plan Year which began prior to January 1,1984,subsequent to
retired on the Participant's Normal Retirement Date.At the close of each Plan Year the last"limitation year"during which the Plan is a Top Heavy Plan,or in which the
prior to the Participant's actual Retirement Date,such Participant shall be entitled to Participant failed to complete a Year of Service,shall be disregarded.
a monthly retirement benefit payable each subsequent Plan Year equal to the
greater of(1)the Participant's monthly retirement benefit determined at the close of (a) For the purposes of this Section,"415 Compensation"in excess of
the prior Plan Year,or(2)the Participant's Accrued Benefit determined at the close $150,000(or such other amount provided in the Code)shall be disregarded.
of the Plan Year,offset by the actuarial value(determined pursuant to Section 1.3) Such amount shall be adjusted for increases in the cost of living in accordance
of the total benefit distributions made by the close of the Plan Year. with Code Section 401(a)(17)(B),except that the dollar increase in effect on
January 1 of any calendar year shall be effective for the Calendar Year beginning
Except with respect to a'five(5)percent owner,"a Participant's with such calendar year.If"415 Compensation'for any prior determination
Accrued Benefit is actuarially increased to take into account the period after age period is taken into account in determining a Participant's minimum benefit for the
70 1/2 in which the Participant does not receive any benefits under the Plan.The current Plan Year,the"415 Compensation"for such determination period is
actuarial increase begins on the April 1 following the calendar year in which the subject to the applicable annual"415 Compensation"limit in effect for that prior
Participant attains age 70 112(January 1,1997 in the case of a Participant who period.For this purpose,in determining the minimum benefit in Plan Years
allained age 70 112 prior to 1996),and ends on the date on which benefits beginning on or after January 1,1989,the annual"415 Compensation"limit in
commence after retirement in an amount sufficient to satisfy Code effect for determination periods beginning before that date is$200,000(or such
Section 401(a)(9). other amount as adjusted for increases in the cost of living in accordance with
Code Section 415(d)for determination periods beginning on or after January 1,
The amount of actuarial increase payable as of the end of the period 1989,and in accordance with Code Section 401(a)(17)(B)for determination
for actuarial increases must be no less than the Actuarial Equivalent of the periods beginning on or after January 1,1994).For determination periods
Participant's retirement benefits that would have been payable as of the date the beginning prior to January 1,1989,the$200,000 limit shall apply only for Top
actuarial increase must commence plus the Actuarial Equivalent of additional Heavy Plan Years and shall not be adjusted.For any short Calendar Year the
benefits accrued after that dale,reduced by the Actuarial Equivalent of any "415 Compensation"limit shall be an amount equal to the"415 Compensation"
distributions made after that date.The actuarial increase is generally the same limit for the calendar year in which the Calendar Year begins multiplied by the
as,and not in addition to,the actuarial increase required for that same period ratio obtained by dividing the number of full months in the short Calendar Year by
under Code Section 411 to reflect the delay in payments after normal retirement, twelve(12).
except that the actuarial increase required under Code Section 401(a)(9)(C)must
be provided even during the period during which a Participant is in Act (f) If Section 5.1(c)provides for the Normal Retirement Benefit to be
Section 203(e)(3)(B)service. paid In a form other than a single life annuity,the Accrued Benefit under this
Section shall be the Actuarial Equivalent of the minimum Accrued Benefit under
5.2 MINIMUM BENEFIT REQUIREMENT FOR TOP HEAVY PLAN (a)above pursuant to Section 1.3.
(a) The minimum Accrued Benefit derived from Employer contributions (9) If payment of the minimum Accrued Benefit commences at a date
to be provided under this Section for each Non-Key Employee who is a Participant other than Normal Retirement Date,the minimum Accrued Benefit shall be the
during a Top Heavy Plan Year shall equal the product of(1)one-twelfth(1/12Ih)of Actuarial Equivalent of the minimum Accrued Benefit commencing at Normal
"415 Compensation"averaged over the five(5)consecutive 9imitation years"(or Retirement Date pursuant to Section 1.3.
actual number of"limitation years,"if Jess)which produce the highest average,and
(2)the lesser of h)two percent(2%)multiplied by Years of Service,or(ii)twenty (h) If a Non-Key Employee participates in this Plan and a defined
percent(20%),expressed as a single life annuity. contribution plan included in a Required Aggregation Group which is top heavy,the
(b) For purposes of providing the minimum benefit under Code minimum benefits shall be provided under this Plan.
Section 416,a Non-Key Employee who is not a Participant solely because(1)such (i) To the extent required to be nonforfeitable under Section 5.6,the
Employee's Compensation is below a stated amount or(2)such Employee declined minimum Accrued Benefit under this Section may not be forfeited under Code
to make mandatory contributions If required)to the Plan will be considered to be a Section 411(a)(3)(B)or Code Section 411(a)(3)(D).
20 21
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5.3 PAYMENT OF RETIREMENT BENEFITS
of the Anniversary Date Coinciding with or next following the date of the
When a Participant retires,the Administrator shall immediately take pursuant to the Participants death.
Plan all necessary steps and execute all required documents to cause the payment of the (c) The Administrator may require such proper proof of death and such
Participant's Accrued Benefit pursuant to the Plan. evidence of the right of any person to receive the death benefit payable as a result
of the death of a Participant as the Administrator may deem desirable.The
5.4 DISABILITY RETIREMENT BENEFITS
Administrators determination of death and the right of any person to receive
(a) If a Participant becomes Totally and Permanently Disabled pursuant payment shall be conclusive,
to Section 1.48 prior to retirement or separation from service,and such condition (d) Unless otherwise elected in the manner prescribed in Section 5.8,
continues for a period of six(6)consecutive months and by reason thereof such
Participant's status as an Employee ceases,then said disabled Participant shall be the Beneficiary of the death benefit shall be the Participant's surviving spouse,who
shall receive such benefit in the form of a Pre-Retirement Survivor Annuity pursuant
entitled to receive the Actuarial Equivalent of the Participant's Accrued Benefit In to Section 5.8.Except,however,the Participant may designate a Beneficiary other
the event of a Participant's Total and Permanent Disability,the Administrator shall than the spouse if:
direct the Trustee to commence payment of the benefits payable hereunder
pursuant to the provisions of Sections 5.7 and 5.9 as though the Participant had
(1) the Participant and the Participant's spouse have validly waived the
retired. Pre-Retirement Survivor Annuity in the manner prescribed in Section 5.8,
(b) The benefit payable pursuant to(a)above shall be Computed as of and the spouse has waived the right to be the Participant's Beneficiary,or
the Anniversary Date subsequent to termination of employment.
(2) the Participant is legally separated or has been abandoned(within
the meaning of local law)and the Participant has a court order to such effect
(c) In the event of the Terminated Participant's Total and Permanent (and there is no qualified domestic relations order which provides
Disability subsequent to termination of employment,the Terminated Participant(or otherwise),or
the Terminated Participant's Beneficiary)shall receive the Actuarial Equivalent of
such Terminated Participant's Vested Accrued Benefit pursuant to the provisions of
Sections 5.7 and 5.9 as though the Terminated Participant had retired. (3) the Participant has no spouse,or
5.5 DEATH BENEFITS (4) the spouse cannot be located.
(a) If a Participant dies prior to the Participant's Retirement Date,such In such event,the designation of a Beneficiary shall be made on a
form satisfactory to the Administrator,A Participant may at any time revoke a
Participant's Beneficiary shall receive a death benefit equal to the Actuarial designation of a Beneficiary or change a Beneficiary by filing written(or in such
Equivalent of the Accrued Benefit determined as of the Anniversary Date i other form as permitted by the Internal Revenue Service)notice of such revocation
subsequent to or Coinciding with the date of death.
or change with the Administrator.However,the Participants spouse must again
Consent in writing(or in such other form as permitted by the Internal Revenue
hn Death benefits payable by reason of the death of a Participant or a Service)to any change in Beneficiary unless the original consent acknowledged
Retired Participant shall be paid to such Participant's Beneficiary in accordance with that the spouse had the right to limit consent only to a specific Beneficiary and that
the following provisions:
the spouse voluntarily elected to relinquish such right.In the event no valid
designation of Beneficiary exists,or if the Beneficiary is not alive,at the time of the
(1) Upon the death of a Participant subsequent to the Participant's Participant's death,the death benefit shall be payable to the Participant's estate.
Retirement Date,but prior to the Annuity Starting Date,the Participant's Additionally,if the Beneficiary does not predecease the Participant,but nice prior to
Beneficiary shall be entitled to a death benefit in an amount equal to the the distribution of the death benefit,the death benefit will be paid to the
Actuarial Equivalent of the benefit the Participant would have received at the
Beneficiary's estate.
Participant's Retirement Date.
(e) The benefit payable under this Section shall be paid pursuant to the
(2) Upon the death of a Participant subsequent to the Annuity Starling provisions of Sections 5.8 and 5,9.
Date,the Participant's Beneficiary shall be entitled to whatever death benefit
may be available under the settlement arrangements pursuant to which the
Participant's benefit is made payable, h) In no event shall the death benefit payable to a surviving spouse be
less than the Actuarial Equivalent of the"minimum spouse's death benefit."
(3) In the event of a Terminated Participant's death subsequent to the (g) For the purposes of this Section,the'minimum spouse's death
Participant's termination of employment,the Participant's Beneficiary shall
benefit"means a death benefit for a Vested married Participant payable in the form
receive the Present Value of such Participant's Vested Accrued Benefit as
of a Pre-Retirement Survivor Annuity.Such annuity Payments shall be equal to the
22
23
II
amount which would be payable as a survivor annuity under the joint and survivor
annuity provisions of the Plan if: That portion of a Terminated Participant's Accrued Benefit that is not
Vested shall become a forfeiture on the last day of the Plan Year in which the
(1) in the case of a Participant who dies after the Earliest Retirement Participant incurs five(5)consecutive 1-Year Breaks in Service.
Age,such Participant had retired with an immediate joint and survivor
annuity on the day before the Participant's date of death,or (b) The Vested portion of any Participant's Accrued Benefit shall be a
percentage of the Participant's Accrued Benefit determined on the basis of the
(2) in the case of a Participant who dies on or before the Earliest Participant's number of Years of Service according to the following schedule:
Retirement Age,such Participant had:
Vesting Schedule
(i) separated from service on the earlier of the actual time of Years of Service Percentage
separation or the date of death, 1 10%
2 20
(t) survived to the Earliest Retirement Age, 3 30
4 40%
(III) retired with an immediate joint and survivor annuity at the 5 60%
Earliest Retirement Age based on the Participant's Vested Accrued 6 80
Benefit on dale of death,and 7 100
(iv) died on the day after the day on which said Participant would (c) Notwithstanding the vesting provided for in paragraph(b)above,for
have attained the Earliest Retirement Age. any Top Heavy Plan Year,the Vested potion of the Accrued Benefit of any
Participant who has an Hour of Service after the Plan becomes top heavy shall be a
(h) Any security interest held by the Plan by reason of an outstanding percentage of the Participant's Accrued Benefit determined on the basis of the
loan to the Participant or Former Participant shall be taken into account in Participants number of Years of Service according to the following schedule:
determining the amount of the Pre-Retirement Survivor Annuity.
If in any subsequent Plan Year,the Plan ceases to be a Top
5.6 TERMINATION OF EMPLOYMENT BEFORE RETIREMENT Heavy Plan,the Administrator shall revert to the vesting schedule in effect before
this Plan became a Top Heavy Plan.Any such reversion shall be treated as a
(a) Payment to a Former Participant of the Vested portion of such Plan amendment pursuant to the terms of the Plan.
Former Participant's Accrued Benefit,unless such Former Participant otherwise
elects,shall begin not later than the 60th day after the close of the Plan Year in (d) Notwithstanding the vesting schedule above,the Vested
which the latest of the following events occurs:(1)the date on which the Participant percentage of a Participant's Accrued Benefit shall not be less than the Vested
attains the earlier of age 65 or the Normal Retirement Age specified herein;(2)the percentage attained as of the later of the effective date or adoption date of this
10th anniversary of the year in which the Participant commenced participation in the amendment and restatement.
Plan;or(3)the date the Participant terminates service with the Employer.
However,the Administrator shall,at the election of the Participant, (e) The computation of a Participant's nonforfeitable percentage of
p such Participant's interest in the Plan shall not be reduced as the result of any
direct earlier payment of the Vested portion of the Participant's Accrued Benefit. direct or indirect amendment to this Plan.In the event that the Plan is amended
Any distribution under this paragraph shall be made in a manner which is consistent to change or modify any vesting schedule,or if the Plan is amended in any way
with and satisfies the provisions of Section 5.7,including,but not limited to,notice that directly or indirectly affects the computation of the Participant's nonforfeitable
and consent requirements of Code Sections 417 and 411(a)(11)and the percentage,or if the Plan is deemed amended by an automatic change to a top
Regulations thereunder, heavy vesting schedule,then each Participant with at least three(3)Years of
Service as of the expiration date of the election period may elect to have such
However,for Plan Years beginning after August 5,1997,the Participant's nonforentable percentage computed under the Plan without regard
Administrator shall direct the earlier payment of the entire Vested portion of the to such amendment or change.If a Participant fails to make such election,then
Present Value of Accrued Benefit,but only if it does not exceed$5,000($3.500 for such Participant shall be subject to the new vesting schedule.The Participant's
Plan Years beginning prior to August 6,1997)and,if the distribution is made prior election period shall commence on the adoption date of the amendment and
to October 17,2000,has never exceeded$5,000($3,500 for Plan Years beginning shall end sixty(60)days after the latest of:
prior to August 6,1997)at the time of any prior distribution.
it) the adoption date of the amendment,
That portion of a Terminated Participant's Accrued Benefit that is
forfeited shall be used only to reduce future costs of the Plan at such time as it (2) the effective date of the amendment,or
becomes a forfeiture.
24 25
(3) the date the Participant receives written notice of the amendment will be treated as the spouse or surviving spouse and a current spouse will
from the Employer or Administrator. not be treated as the spouse or surviving spouse to the extent provided
under a qualified domestic relations order as described in Code Section
5.7 DISTRIBUTION OF BENEFITS 414(p)
(a)(1) Unless otherwise elected as provided below,a Participant who is (5) With regard to the election,the Administrator shall provide to the
manned on the Annuity Starting Date and who does not die before the Annuity Participant no less than thirty(30)days and no more than ninety(90)days
Starting Date shall receive the value of all of such Participant's benefits in the form before the Annuity Starting Date a written(or in such other form as
of a joint and survivor annuity.The joint and survivor annuity is an annuity that permitted by the Interval Revenue Service)explanation of:
commences immediately and shall be the Actuarial Equivalent of a single life
annuity.Such joint and survivor benefits following the Participant's death shall (i) the terms and conditions of the joint and survivor annuity,
continue to the spouse during the spouse's lifetime at a rate equal to fifty percent
(50%)of the rate at which such benefits were payable to the Participant.This joint (it) the Participant's right to make,and the effect of,an election
and fifty percent(50%)survivor annuity shall be considered the designated qualified to waive the joint and survivor annuity,
joint and survivor annuity and automatic form of payment for the purposes of this
Plan.An unmarred Participant shall receive the value of such Participant's benefit (iii) the right of the Participant's spouse to consent to any
in the form of a life annuity.Such unmarried Participant,however,may elect in election to waive the joint and survivor annuity,and
writing to waive the life annuity.The election must comply with the provisions of this
Section as if it were an election to waive the joint and survivor annuity by a marred (iv) the right of the Participant to revoke such election,and the
Participant,but without the spousal consent requirement.The joint and survivor effect of such revocation,
annuity and the life annuity form of distribution shall be the Actuarial Equivalent of j
the benefits due the Participant. (6) Notwithstanding the above,with respect to distributions made
after December 31, 1996,if the Participant elects(with spousal consent,if
(2) Any electron to waive the joint and survivor annuity must be made by applicable)to waive the requirement that the explanation be provided at
the Participant in writing(of in such other form as permitted by the Internal least thirty(30)days before the Annuity Starting Date,the election period
Revenue Service)during the election period and be consented to in witting shall be extended to the thirtieth(301h)day after the date on which such
(or in such other form as permitted by the Internal Revenue Service)by the explanation is provided to the Participant,unless the thirty(30)day period
Participant's spouse.If the spouse is legally incompetent to give consent, is waived pursuant to the following provisions.
the Spouse's legal guardian,even if such guardian is the Participant,may
give consent.Such election shall designate a Beneficiary(or a form of Any distribution provided for in this Section 5.7 may commence
benefits)that may not be changed without spousal consent(unless the less than thirty(30)days after the notice required by Code
consent of the spouse expressly permits designations by the Participant Section 417(a)(3)is given provided the following requirements are
without the requirement of further consent by the spouse).Such spouse's satisfied:
consent shall be irrevocable and must acknowledge the effect of such
election and be witnessed by a Plan representative or a notary public.Such (i) the Administrator clearly informs the Participant that the
consent shall not be required if it is established to the satisfaction of the Participant has a fight to a period of thirty(30)days after receiving
Administrator that the required consent cannot be obtained because there is the notice to consider whether to waive the joint and survivor annuity
no spouse,the spouse cannot be located,or other circumstances that may _ and t elect(with spousal consent)to a form of distribution other
be prescribed by Regulations.The election made by the Participant and than o joint and survivor annuity;
consented to by such Participant's spouse may be revoked by the
Participant in writing(or in such other form as permitted by the Internal (ii) the Participant is permitted to revoke an affirmative
Revenue Service)without the consent of the spouse at any time during the distribution election at least until the Annuity Starting Date,or,if
election period.A revocation of a prior election shall cause the Participant's later,al any time prior to the expiration of the seven(7)day period
benefits lobe distributed as a joint and survivor annuity.The number of that begins the day after the explanation of the joint and survivor
revocations shall not be limited.Any new election must comply with the annuity is provided to the Participant;
requirements of this paragraph.A former spouse's waiver shall not be
binding on a new spouse. (III) the Annuity Starting Date is after the dale that the
explanation of the joint and survivor annuity is provided to the
(3) The election period to waive the joint and survivor annuity shall be Participant.However,the Annuity Starting Dale may be before the
the ninety(90)day period ending on the Annuity Stating Date. date that any affirmative distribution election is made by the
Participant and before the date that the distribution is permitted to
spouse
For purposes of this Section,spouse or surviving spouse means the commence under(iv)below;and
spouse or surviving spouse of the Participant,provided that a former spouse '
(iv) distribution in accordance with the affirmative election does
not commence before the expiration of the seven(7)day period that (10) Reduced monthly pension payable over the life of the Participant
begins the day after the explanation of the joint and survivor annuity and the life of the Participant's designated Beneficiary(75%joint and
is provided to the Participant. survivor annuity).
(b) In the event a married Participant duly elects pursuant to paragraph
a 2 01) Reduced monthly pension payable over the life of the Participant
( )( )above not to receive benefits in the form of a joint and survivor annuity,of if and the Ids of the Participant's designated Beneficiary(100%joint and
such Participant is not married,in the form of a fife annuity,the Administrator, survivor annuity).
pursuant to the election of the Participant,shall direct the Trustee to distribute to a
Participant or such Participant's Beneficiary an amount which is the Actuarial However,any such annuity may not be in any form that will provide for
Equivalent of the monthly retirement benefit provided in Section 51(c)in one or payments over a period extending beyond either the life of the Participant
more of the following methods: (or the lives of the Participant and the Participant's designated Beneficiary)
or the life expectancy of the Participant(or the life expectancy of the
(1) One lump-sum payment in cash. Participant and the Participant's designated Beneficiary).
(2) Payments over a period certain in monthly,quarterly,semiannual,or (c) The present value of a Participant's joint and survivor annuity
annual cash installments.The period over which such payment is to be tlerived from Employer and Employee contributions may not,for Plan Years
made shall not extend beyond the Participant's life expectancy(or the life beginning after August 5,1997,be paid without the Participant's and the
expectancy of the Participant and the Participant's designated Beneficiary). ! Participant's spouse's written(or in such form as permitted by the Internal
Revenue Service)consent if the value exceeds$5,000($3,500 for Plan Years
(3) Monthly pension payable over the life of the Participant. beginning prior to August 6, 1997)or,if the distribution is made prior to
October 17,2000,has ever exceeded$5,000($3,500 for Plan Years beginning
(4) Reduced monthly pension payable over the life of the Participant, October
to August 6,1997)at the time of any prior distribution and the benefit is
with the provision that,if a Retired Participant dies prior to the completion of "immediately distributable."However,spousal consent is not required if the
sixty(60)monthly payments,such monthly payments shall be continued to distribution will be made in the form of a joint and survivor annuity and the benefit the Retired Participant's designated Beneficiary until the monthly payments is"immediately distributable."A benefit is"immediately distributable"if any part of
l
made to the Retired Participant and to the Beneficiary shall total sixty(60). I the benefit could be distributed to the Participant(or surviving spouse)before the
Reduced monthly pension payable over the life of the Participant,
Participant attains(or would have attained if not deceased)the later of the
with
the provision that,if a Retired Participant Normal Retirement Age or age 62.Any consent required by thispant dies prior to the completion of Section 5.7(c)must be obtained not more than ninety(90)days before
120 monthly payments,such monthly payments shall be continued to the commencement of the distribution and shall be made in a manner consistent with
Retired Participant's designated Beneficiary until the monthly payments Section 5.7(a)(2}.
made to the Retired Participant and to the Beneficiary shall total 120.
If,for Plan Years beginning after August 5,1997,the value of the
(6) Reduced monthly pension payable over the life of the Participant, Participant's benefit derived from Employer and Employee contributions does not
with the provision that,if a Retired Participant dies prior to the completion of exceed$5,000($3,500 for Plan Years beginning prior to August 6, 1997)and,if
Retired Participant's designated Beneficiary until the monthly payments
180 monthly payments,such monthly payments shall be continued the the distribution is made prior to October 17,2000,has never exceeded$5,000
ts ($3,500 for Plan Years beginning prior to August 6, 1997)at the time of any prior
made to the Retired Participant and to the Beneficiary shall total 180. distribution,then the Administrator shall direct the Trustee to immediately
distribute such benefit in a lump sum without the Participant's and the
(7) Reduced monthly pension payable over the life of the Participant, Participant's spouse's written consent.No distribution may be made under the
with the provision that,if a Retired Participant dies prior to the completion of I preceding sentence after the Annuity Starting Date unless the Participant and the
240 monthly payments,such monthly payments shall be continued to the Participant's spouse consent in writing(or in such form as permitted by the
Retired Participant's designated Benefidary until the monthly payments Internal Revenue Service)to such distribution.
made to the Retired Participant and to the Beneficiary shall total 240.
(d) The following rules will apply to the consent requirements set forth In
an Reduced monthly pension payable over the life of the%j Participant
and the I of uithe Participant's designated Beneficiary(50%Joint and subsection(c):
an
survivor annuity). (1) No consent shall be valid unless the Participant has received a
general description of the material features and an explanation of the
and the life Reduced monthly pens payable over the life of the Participant relative values of the optional forms of benefit available under the Plan that
survivor annuity).an the Participant'sd designated Beneficiary(66 2/3%joint and would satisfy the notice requirements of Code Section 417.
28 29
I
(2) The Participant must be informed of the right to defer receipt of the
distribution.If a Participant fails to consent,A shall be deemed an election to Alternatively,distributions to a Participant must begin no later than the
defer the commencement of payment of any benefit.However,any election applicable April 1st as determined under the preceding paragraph and must
to defer the receipt of benefits shall not apply with respect to distributions be made over the life of the Participant(or the lives of the Participant and
which are required under Section 5.7(e). the Participant's designated Beneficiary)or the life expectancy of the
Participant(or the life expectancies of the Participant and the Participant's
(3) Notice of the rights specified under this paragraph shall be provided designated Beneficiary)in accordance with Regulations,
no less than thirty(30)days and no more than ninety(90)days before the
Annuity Starting Date. (2) Distributions to a Participant and the Participants Beneficiaries shall
Notwithstanding the above,the Annuity Starting Date may be a date prior
only be made in accordance with the incidental death benefit requirements to the date the explanation is provided to the Participant Ifthe distribution of Code Section 401(a)(9)(G)and the Regulations thereunder.
does not commence until at least thirty(30)days after such explanation is With respect to distributions under the Plan made for calendar years
provided,subject to the waiver of the thirty(30)day period as provided for in With
on or after January 1,2001,the Plan will apply the minimum distribution
Section 5.7(a)(6). requirements of Code Section 401(a)(9)In accordance with the Regulations under
Code Section 401(a)(9)that were proposed on January 17,2001,notwithstanding
(4) W dtten(or such other form as permitted by the Internal Revenue any provision of the Plan to the contrary.This amendment shall continue in effect
Service)consent of the Participant to the distribution must not be made until the end of the last calendar year beginning before the effective date of final
before the Participant receives the notice and must not be made more than Regulations under Code Section 401(a)(9)or such other date specified in guidance
ninety(90)days before the Annuity Starting Dale. published by the Internal Revenue Service.
(5) No consent shall be valid if a significant detriment is imposed under �I (f) For purposes of this Section,the life expectancy of a Participant and
the Plan on any Participant who does not consent to the distribution. a Participant's spouse(other than in the case of a life annuity)may,at the election
of the Participant or the Participant's spouse,be redetermined in accordance with
Any such distribution may commence less than thirty(30)days, Regulations.The election,once made,shall be irrevocable.If no election is made
subject to Section 5.7(a)(5),after the notice required under Regulation by the time distributions must commence,then the life expectancy of the Participant
1.411(a)-11(c)is given,provided that:(1)the Administrator clew 'informs the
and the Participant's spouse shall not be subject to recalculation.Life expectancy
Participant that the Participant has right to a period of at least thirty( days
after receiving the notice to consider
elect
and joint and last survivor expectancy shall be computed using the return multiples
the decision of whether or not to elect a in Tables V and VI of Regulation 1.72-9.
distribution(and,it applicable,a particular distribution option),and(2)the
Participant,after receiving the notice,affirmatively elects adistribution. - (9) Subject to the spouse's right of consent afforded under the Plan,the
restrictions imposed by this Section shall not apply if a Participant has,Prior to
(o Notwithstanding be any provision in the Plan to the contrary,the January 1,1984,made a written designation to have retirement benefits paid in an
underthe la a Participant's benefits made on or after January h ll be whether afternative method acceptable under Code Section 401(a)(9)as in effect prior to the
under the Plan or through the purchase of an annuity contract,shall comply
made in enactment of the Tax Equity and Fiscal Responsibility Act of 1982.
accordance with the following requirements and shall otherwise comply with Code i
Section 401(a)(9)and the Regulations thereunder(including Regulation (h) All annuity Contracts under this Plan shall be non-transferable when
1A01(a)(9)-2),the provisions of which are incorporated herein by reference: distributed.Furthermore,the terms of any annuity Contract purchased and
O
1 A Participant's benefits seals be distributed or must begin to e t dismantled to a Participant or spouse shall comply with all of the requirements of the
distributed not later than the April 1st of the calendar year following the Plan.
calendar year in which the Participant attains age 70 1/2.Such distribution 5.8 DISTRIBUTION OF BENEFITS UPON DEATH
shall be equal to or greater than any required distribution.However,a
Participant who is not a"five(5)percent owner"and who attains age 70 112 (a) Unless otherwise elected as provided below,a Vested Participant
in or after a calendar year that begins after the later of(i)December 31, who dies before the Annuity Starting Dale and who has a surviving spouse shall
1998,or(ii)the adoption date of an amendment eliminating the required have the death benefit paid to the surviving spouse in the form of a Pre-Retirement
distribution provided in the first sentence of this paragraph,provided that the Survivor Annuity.The Participant's spouse may direct that payment of the
adoption date is later than the last day of any remedial amendment Pre-Retirement Survivor Annuity commence within a reasonable period after the
period that applies to the Plan for changes under the Small Business Job Participant's death(but not later than the month in which the Participant would have
Protection Act of 199Q shall have such benefits distributed must begin to attained the Earliest Retirement Age under the Plan If the Participant dies on or
later
be distributed not later than the April 1 of the calendar yearr fallowing the before the Earliest Retirement Age).If the spouse does not so direct,payment of
thecalendar
the calendar year in which thee entlar year in which the Participant retires.Participant attains age 70 1/2,or such benefit will commence at the time the Participant would have attained the later
30 31
of Normal Retirement Age or age 62.However,the spouse may elect a later For purposes of applying this Section 5.8(d),a reasonable period
commencement date,subject to the rules specked in Section 5.8(g). ending after the enumerated events described in paragraphs(2),(3)and(4)is the
end of the two(2)year period beginning one(1)year prior to the date the applicable
(b) Any election to waive the Pre-Retirement Survivor Annuity before event occurs,and ending one(1)year after that date.
the Participants death must be made by the Participant in writing(or in such other
form as permitted by the Internal Revenue Service)during the election period and (a) If the present value of the Pre-Retirement Survivor Annuity
shall require the spouses irrevocable consent in the same manner provided for in derived from Employer and Employee contributions does not exceed$5,000
Section 5.7(Bene Further,the spouse's consent must acknowledge the e specific ($3,500 for Plan Years beginning prior to August 6,1997)and,if the distribution
nonspouse Beneficiary.Notwithstanding the foregoing,the nonspouse Beneficiary is made prior to October 17,2000,has never exceeded$5,000($3,500 for Plan
used not be acknowledged,provided the consent of the spouse acknowledges that Years beginning prior to August 6,1997)at the time of any prior distribution,then
the spouse has the right to limit consent onlyto a specific Beneficiary and that the the Administrator shall direct the immediate distribution of the present value of
spouse voluntarily elects to relinquish such right. the Pre-Retirement Survivor Annuity to the Participant's spouse.No distribution
may be made under the preceding sentence after the Annuity Starting Date
(c) The election period to waive the Pre-Retirement Survivor Annuity unless the spouse consents in wrifing(or in such other form as permitted by the
shall begin on the first day of the Plan Year in which the Participant attains age Internal Revenue Service)to such distribution.If the value exceeds$5,000
thirty-five(35)and antl on the dale of the Participants death.An earlier waiver(with ($3,500 for Plan Years beginning prior to August 6, 1997)or,If the distribution is
spousal consent)may be made provided a written(or in such other form as made prior to October 17,2000,has ever exceeded$5,000($3,500 for Plan
permitted by the Internal Revenue Service)explanation of the Pre-Retirement Years beginning prior to August 6,1997)at the time of any prior distribution,then
Survivor Annuity is given to the Participant and such waiver becomes invalid at the an immediate distribution of the entire amount of the Pre-Retirerner t Survivor
beginning of the Plan Year in which the Participant turns age thirty-five(35),In the Annuity may be made to the surviving spouse,provided such surviving spouse
event a Vested Participant separates from service prior to the beginning of the consents in writing(or in such other form as permitted by the Internal Revenue
election period,the election period shall begin on the date of such separation from Service)to such distribution.Any consent required under this paragraph must be
service- obtained not more than ninety(90)days before commencement of the
(d) With regard to the election,the Administrator shall provide each distribution and shall be made in a manner consistent with Section 5.7(a)(2),
Participant within the applicable period,with respect to such Participant(and The present value in this regard shall be determined as provided
consistent with Regulations),a written(or in such other form as permitted by the in Section 1,40.Notwithstanding the foregoing,the present value of the
Internal Revenue Service)explanation of the Pre-Retirement Survivor Annuity Pre-Retirement Survivor Annuity shall be determined as provided in Section 1.40.
containing comparable infornation to that required pursuant to Section 5.7(a)(5), j
For the purposes of this paragraph,the term"applicable period"means,with (f)(1) To the extent the death benefit is not paid mine form old
respect to a Participant,whichever of the following periods ends last - Pre-Retirement Survivor Annuity,it shall be paid to the Participant's Beneficiary in
one of the following methods,as elected by the Participant(or if no election has
Pa rticipant attains age thirty-two(32)and ending with the close of the Plan The period beginning with the first day of the Plan Year which the been made prior to the Participant's death,by the Participant's Beneficiary):
Pa
Year preceding the Plan Year in which the Participant attains age thirty-five (i) One lump-sum payment in cash.
(35);
2 (it) Payment in monthly,quarterly,semi-annual,or annual cash
O A reasonable period after the individual becomes a Participant; installments over a period to be determined by the Participant or the
Participant's Beneficiary.After periodic installments commence,the
(3) A reasonable period ending after the Plan no longer fully subsidizes Beneficiary shall have the right to direct the Trustee to reduce the
the cost of the Pre-Retirement Survivor Annuity with respect to the period over which such periodic installments shall be made,and the
Participant: Trustee shall adjust the cash amount of such periodic installments
(4) A reasonable period ending after Code Section 401 left 1)applies to accordingly.
the Participant;or (ill) Monthly pension payable over the I fe of the Participant's
Beneficiary.
(5) A reasonable period after separation from service in the case of a
Participant who separates before attaining age thirty-five(35).For this (iv) Reduced monthly pension payable ension a able over the life of the
purpose,the Administrator must provide the explanation beginning one(1) Participant's designated Beneficiary,with the provision that,if the
year before the separation from service and ending one(1)year after such Participant's designated Beneficiary dies prior to the completion of
separation.If such a Participant thereafter returns to employment with the 60 monthly payments,such monthly payments shall be continued to
Employer,the applicable period for such Participant shall be redetermined. the Participant's beneficiary until the monthly payments made to the
I
32 33
— _ --------- --- -------
Participants designated Beneficiary and the Participant's beneficiary
shall total 60, (g) Notwithstanding any provision in the Plan to the contrary,
distributions upon the death of a Participant shall be made in accordance with the
(v) Reduced monthly pension payable over the life of the following requirements and shall otherwise comply with Code Section 401(a)(9)
Participant's designated Beneficiary,with the provision that,if the and the Regulations thereunder.If it is determined,pursuant to Regulations,that
Participant's designated Beneficiary dies prior to the completion of the distribution of a Participant's interest has begun and the Participant dies
120 monthly payments,such monthly payments shall be continued before the entire interest has been distributed,the remaining portion of such
to the Participant's beneficiary until the monthly payments made to interest shall be distributed at least as rapidly as under the method of distribution
the Participant's designated Beneficiary and the Participant's selected pursuant to Section 5.7 as of the date of death. If a Participant dies
beneficiary shall total 720. before receiving any distributions of the interest in the Plan or before distributions
are deemed to have begun pursuant to Regulations,then the death benefit shall
(vi) Reduced monthly pension payable over the life of the be distributed to the Participant's Beneficiaries by December 31 at of the calendar
Participant's designated Beneficiary,with the provision that,if the year in which the fifth anniversary of the Participant's date of death occurs.
Participant's designated Beneficiary dies prior to the completion of
180 monthly payments,such monthly payments shall be continued However,in the event that the Participant's spouse(determined as
to the Participant's beneficiary until the monthly payments made to of the date of the Participant's death)is the designated Beneficiary,then in lieu of
the Participant's designated Beneficiary and the Participant's the preceding rules,distributions must be made over the life of the spouse(or over
beneficiary shall total 180. a period not extending beyond the fife expectancy of the spouse)and must
commence on or before the later of:(1)December 31 st of the calendar year
twit) Reduced monthly pension payable over the of the immediately following the calendar year in which the Participant died;or
Participant's designated Beneficiary,with the provisioonn that,if the (2)December 31st of the calendar year in which the Participant would have
Participants designated Beneficiary dies prior to the completion of attained age 70 112.If the surviving spouse dies before distributions to such spouse
240 monthly payments,such monthly payments shall be continued begin,then the 5-year distribution requirement of this Section shall apply as if the
to the Participant's beneficiary until the monthly payments made to spouse was the Participant.
the Participant's designated Beneficiary and the Participant's
beneficiary shall total 240 (h) For purposes of this Section,the life expectancy of a Participant
and a Participant's spouse(other than in the case of a life annuity)may,at the
(vnq Reduced monthly pension payable over the Iae of the election of the Participant or the Participant's spouse,be redetermined in
Participant's designated Beneficiary and the life of the Participant's accordance with Regulations.The election,once made,shall be irrevocable.If no
beneficiary(50%joint and survivor annuity). election is made by the time distributions must commence,then the life
expectancy of the Participant and the Participant's spouse shall not be subject to
(ix) Reduced monthly pension payable over the life of the recalculation.Life expectancy and joint and last survivor expectancy shall be
Participant's designated Beneficiary and the iife of the Participant's beneficiary(66 2/3%joint and survivor annuity). computed using the return multiples in Tables V and VI of Regulation 1.72-9.
(I) For purposes of this Section,any amount paid to a child of the
Pa Reduced monthly pension payable over the of the Participant will be treated as if it had been paid to the surviving spouse if the
Participant's designated Beneficiary and the life of thee Participant's amount becomes payable to the surviving spouse when the child reaches the
beneficiary{75%joint and survivor annuity). age of majority.
{xi) Reduced monthly pension payable over the life of the Q) Subject to the spouse's right of consent afforded under the Plan,the
Participant's designated Beneficiary and the life of the Participant's restrictions imposed by this Section shall not apply if a Participant has,prior to
beneficiary(100%joint and survivor annuity). January 1,1984,made a written designation to have death benefits paid in an
alternative method acceptable under Code Section 401(a)(9)as in effect prior to the
(2) In the event the death benefit payable pursuant to Section 5.5 is enactment of the Tax Equity and Fiscal Responsibility Act of 1982.
payable in installments,then,upon the death of the Participant,the
Administrator may direct the Trustee to segregate the death benefit into a 5.9 TIME OF SEGREGATION OR DISTRIBUTION
separate account,and the Trustee shall invest such segregated account
separately,and the funds accumulated in such account shall be used for the Except as limited by Sections 5.7 and 5.8,whenever the Trustee is to make a
payment of the installments. I, distribution or to commence a series of payments the distribution or series of payments may be
made or begun on such date or as soon thereafter as is practicable.However,unless a Former
(3) Notwithstanding the above,if the death benefit payable pursuant to Participant elects in writing to defer the receipt of benefits(such election may not result in a death
Section 5.5 is payable in an annuity,payments shall be subject to the rules benefit that is more than incidental),the payment of benefits shall begin not later than the sixtieth
specified in Section 6.8(g). (60th)day after the close of the Plan Year in which the latest of the following events occurs:(a)the
34
35
date on which the Participant attains the earlier of age 65 or the Normal Retirement Age specified order."Furthermore,a distribution to an"alternate payee"shall be permitted if such distribution is
herein;(b)the tenth(1 Old)anniversary of the year in which the Participant commenced authorized by a"qualified domestic relations order,"even 9 the affected Participant has not
participation in the Plan;or(c)the date the Participant terminates service with the Employer. separated from service and has not reached the Earliest Retirement Age.For the purposes of this
Notwithstanding the foregoing,the failure of a Participant and,If applicable,the
Section,"alternate payee"and'qualified domestic relations order"shall have the meaning set forth
under Code Section 414(p).
Participant's spouse,to consent to a distribution that is"immediately distributable"(within the
meaning of Section 5.7),shall be deemed to be an election to defer commencement of payment of 5.14 LIMITATION OF BENEFITS ON TERMINATION
any benefit sufficient to satisfy this Section.
5.10 DISTRIBUTION FOR MINOR OR INCOMPETENT BENEFICIARY (a) Benefits distributed to any of the twenty-five(25)Highly
Compensated Participants with the greatest compensation in the current or prior
In the event a distribution is to be made to a minor or incompetent Beneficiary,then year are restricted such that the monthly payments are no greater than an amountequal to the monthly payment that would be made on behalf of such individual
the Administrator may direct that such distribution be paid to the legal guardian,or if none in the under a straight life annuity that is the Actuarial Equivalent of the Sum of the
case of a minor Beneficiary,to a parent of such Beneficiary or a responsible adult with whom the individual's Accrued Benefit,the individual's other benefits under the Plan(other
Beneficiary maintains residence,or to the custodian for such Beneficiary under the Uniform Gift to than a social security supplement within the meaning of Regulation
Minors Act or Gift to Minors Act,if such is permitted by the laws of the slate in which said 1.411(a}7(c)(4)(ii)),and the amount the individual is entitled to receive under a
Beneficiary resides.Such a payment to the legal guardian,custodian or parent of a minor social security supplement.However,the limitation of this Section 5.14 shall not
Beneficiary shall fully discharge the Trustee,Employer,and Plan from further liability on account thereof. apply if:
5.11 LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN (1) after payment of the benefit to an individual described above,the
value of Plan assets equals or exceeds one-hundred-ten percent(I10%)of
the value of current liabilities,as defined in Code Section 412d)(7);
In the event that all,or any portion,of the distribution payable to a Participant or
Beneficiary hereunder shall,at the later of the Participant's attainment of age 62 or Normal (2) the value of the benefits for an individual described above is less
Retirement Age,remain unpaid solely by reason of the inability of the Administrator,after than 1 percent of the value of current liabilities before distribution;or
sending a registered letter,return receipt requested,to the last known address,and after further
diligent effort,to ascertain the whereabouts of such Participant or Beneficiary,the amount so (3) the value of the benefits payable under the Plan to an individual
distributable shall be forfeited and shall be used to reduce the cost of the Plan.Notwithstanding described above does not exceed$5,000($3,500 for Plan Years beginning
the foregoing,effective O11O1/2001,or if later,the adoption date of this amendment and prior to August 6, 1997).
restatement,ff the value of a Participant's Vested benefit derived from Employer and Employee
contributions does not exceed$5,000($3,500 for Plan Years beginning prior to August 6.1997), (tr) For purposes of this Section,benefit includes loans in excess of the
then the amount distributable may,in the sole discretion of the Administrator,either be treated amount set forth in Code Section 72(p)(2)(A),any periodic income,any withdrawal
as a forfeiture,or be paid directly to an individual retirement account described in Code values payable to a living Participant,and any death benefits not provided for by
Section 408(a)or an individual retirement annuity described in Code Section 408(b)at the time insurance on the individual's life.
it is determined that the whereabouts of the Participant or the Participant's Beneficiary cannot
be ascertained.in the event a Participant or Beneficiary is located subsequent to the benefit (c) An individual's otherwise restricted benefit may be distributed in full
being forfeited,such benefit shall be restored unadjusted for earnings or losses.However, to the affected individual if,prior to receipt of the restricted amount,the individual
regardless of the preceding,a benefit which is lost by reason of escheat under applicable state enters into a written agreement with the Administrator to secure repayment to the
law is not treated as a forfeiture for purposes of this Section nor as an impermissable forfeiture Plan of the restricted amount.The restricted amount is the excess of the amounts
under the Code, distributed to the individual(accumulated with reasonable interest)over the
amounts that could have been distributed to the individual under the straight life
5.12 EFFECT OF SOCIAL SECURITY ACT annuity described above(accumulated with reasonable interest).The individual
Benefits being paid to a Participant or Beneficiary under the terms of the Plan may may secure repayment of the restricted amount upon distribution by:
not be decreased by reason of any post-separation Social Security benefit increases or by the (1) entering into an agreement for promptly depositing in escrow with an
increase of the Social Security wage base under Title 11 of the Social Security Act.Benefits to which acceptable depositary,property having a fair market value equal to at least
a Former Participant has a Vested interest may not be decreased by reason of an increase in a one-hundred-twenty-five percent(125%)of the restricted amount;
benefit level or wage base under The It of the Social Security Act.
5.13 QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION (2) providing a bank letter of credit in an amount equal to at least
one-hundred percent(100%)of the restricted amount;or
Ali rights and benefits,including elections,provided to a Participant in this Plan shall
be subject to the rights afforded to any"alternate payee"under a"qualified domestic relationsI,
36 37 '..
(3) posting a bond equal to at least one-hundred percent(100%)of the (c) Notwithstanding anything In this Article to the contrary,if the Plan
restricted amount.The bond must be furnished by an insurance company, was in existence on May 6,1986,and had complied at all times with the
bonding company or other surety for federal bonds. requirements of Code Section 415,the maximum"annual benefit"for any
individual who is a Participant as of the first day of the"limitation year"beginning
(d) The escrow arrangement may permit an individual to withdraw from after December 31,1986,shall not be less than the"current accrued benefit."
escrow amounts in excess of one-hundred-twenty-five percent(125%)of the "Current accrued benefit"shalt mean a Participant's Accrued Benefit under the
restricted amount.If the market value of the property in an escrow account falls Plan,determined as if the Participant had separated from service as of the close
below one-hundred-ten percent(110%)of the remaining restricted amount,the of the Iasi"limitation year"beginning before January 1,1987,when expressed as
individual must deposit additional property to bring the value of the property held by an annual benefit within the meaning of Code Section 415(b)(2).In determining
the depositary up to one-hundred-twenty-five percent(125%)of the restricted the amount of a Participant's"current accrued benefit,"the following shall be
amount.The escrow arrangement may provide that the individual has the right to disregarded:(1)any change in the terms and conditions of the Plan after
receive any income from the property placed in escrow,subject to the individual's May 5, 1986;and(2)any cost of living adjustment occurring after May 5, 1986.
obligation to deposit additional property,as set forth in the preceding sentence.
(d) The dollar limitation under Code Section 415(b)(1)(A)stated in
(a) A surety or bank may release any liability on a bond or letter of credit paragraph(a)(1)above shall be adjusted annually as provided in Code
in excess of one-hundred percent(100%)of the restricted amount. Section 415(d)pursuant to the Regulations.The adjusted limitation is effective as
of January tat of each calendar year and is applicable to"limitation years"ending
(f) If the Administrator certifies to the depositary,surety or bank that the with or within that calendar year.
individual(or the individual's estate)is no longer obligated to repay any restricted
amount,a depositary may deliver to the individual any property held under an (a) The limitation stated in paragraph(a)(2)above for Participants
escrow arrangement,and a surety or bank may release any liability on an - who have separated from service with anon-forteitable right to an Accruedindividual's bond or letter of credit. Benefit shall be automatically adjusted by multiplying such limitation by the cost-
of-living adjustment factor prescribed by the Secretary of the Treasury under
ARTICLE VI Code Section 415(tl)in such manner as the Secretary shall prescribe.The
CODE SECTION 415 LIMITATIONS adjusted limitation shall apply to"limitation years"ending with or within the
6.1 ANNUAL BENEFIT
calendar year of the date of the adjustment.
i
(f) For the purpose of this Article,all qualified defined benefit plans
For purposes of this Article,effective January 1,2000,"annual benefit"means (whether terminated or not)ever maintained by the Employer shall be treated as
the benefit payable annually under the terms of the Plan(exclusive of any benefit not required to one defined benefit plan,and all qualified defined contribution plans(whether
be considered for purposes of applying the limitations of Code Section 415 to the Plan)payable terminated or not)ever maintained by the Employer shall be treated as one
in the form of a straight life annuity with no ancillary benefits.If the benefit under the Plan is defined contribution plan.
payable in any other form,the"annual benefit"shall be adjusted to the equivalent of a straight
life annuity pursuant to Section 6.3(c). If a Participant is,or has ever been,a participant in more than one
defined benefit plan maintained by the Employer,the sum of the Participant's
6.2 MAXIMUM ANNUAL BENEFIT _ "annual benefits"from all such plans may not exceed the maximum"annual
benefit"of this Section 6.2.Where the Participant's Employer-provided benefits
(a) Notwithstanding"annual b the foregoing and subject to the exceptions under all defined benefit plans ever maintained by the Employer(determined as
below,the maximum"annual benefit"payable to a Participant under this Plan in of the same age)would exceed the maximum"annual benefit"applicable at that
any"limitation year"shall equal the lesser of:(1)$90,000 payable as a straight age,the Employer will reduce the rate of accrual in this Plan to the extent
life annuity,or(2)one hundred percent(100°!°)of the Participant's"415 necessary so that the total"annual benefit"payable at any time under such plans
Compensation"averaged over the three consecutive"limitation years"(or actual will not exceed the maximum"annual benefit."
number of"limitation years"for Employees who have been employed for less
than three consecutive"limitation years")during which the Employee had the (g) For the purpose of this Article,if the Employer is a member of a
greatest aggregate"415 Compensation"from the Employer. controlled group of corporations,trades or businesses under common control(as
defined by Code Section 1563(a)or Code Section 414(b)and(c)as modified by
(b) For purposes of applying the All
of Code Section 415,the Code Section 415(h))or is a member of an affiliated service group(as defined by
"limitation year"shade the Calendar Year.All limitations
qualified plans maintained by the Code Section 414(m)),all Employees of such Employers shall be considered to
Employer must use the same"limitation year."If the"limitation year"is amendetl be employed by a single Employer.
to a different twelve(12)consecutive month period,the new"limitation year"
must begin on a date within the"limitation year"in which the amendment is (h) If this is a plan described In Code Section 413(c)(other than a
made. plan described in Code Section 413(f)),then all of the benefits or contributions
attributable to a Participant from all of the Employers maintaining this Plan shall
313 39
be taken into account in applying the limits of this Article with respect to such (d) For purposes of Sections 6.1,6.3(a)and 6.3(b),no adjustments
Participant,Furthermore,in applying the limitations of this Article with respect to under Code Section 415(d)shall be taken into account before the"limitation
such a Participant,the total"415 Compensation"received by the Participant from I
I year"for which such adjustment first takes effect.
all of the Employers maintaining the Plan shall be taken into account.
(i) Notwithstanding anything contained in this Article to the contra (a) For purposes of Section 6,1,no actuarial adjustment to the benefit
ry, is required for(1)the value of a qualified joint and survivor annuity,(2)benefits
the limitations,adjustments and other requirements prescribed in this Article shall that are not directly related to retirement benefits(such as a qualified disability
at all limes comply with the provisions of Code Section 415 and the Regulations benefit,pre-retirement death benefits,and post-retirement medical benefits),and
thereunder. (3)the value of post-retirement cost-of-living increases made in accordance with
Code Section 415(d)and Regulation 1.415-3(c)(2)(iii).The"annual benefit"does
6.3 ADJUSTMENTS TO ANNUAL BENEFIT AND LIMITATIONS not include any benefits attributable to Employee contributions or rollover
contributions,or the assets transferred from a qualified plan that was not
(a) If the"annual benefit"begins before the Participant's Social maintained by the Employer.
Security Retirement Age,but on or after age 62,the$90,000 limitation shall be
reduced by:(1)in the case of a Participant whose Social Security Retirement 6.4 ANNUAL BENEFIT NOT IN EXCESS OF$10,000
Age is 65,5/9 of 1%for each month by which benefits commence before the
month in which the Participant attains age 65,or(2)in the case of a Participant This Plan may pay an"annual benefit"to any Participant in excess of the
whose Social Security Retirement Age is greater than 65,519 of 1%for each of Participant's maximum"annual benefit"if the"annual benefit"derived from Employer
the first 36 months and 5/12 of 1%for each additional.month(up to 24)by which contributions under this Plan and all other defined benefit plans maintained by the Employer
benefits commence before the month in which the Participant attains Social does not in the aggregate exceed$10,000 for the"limitation year"or for any prior"limitation
Security Retirement Age.If the"annual benefit"begins before age 62,the year"and.the Employer has not at any time maintained a defined contribution plan,a welfare
$90,000 limitation shall be the actuarial equivalent of the Participant's limitation benefit fund under which amounts attributable to post-retirement medical benefits are allocated
for benefits commencing at age 62,reduced for each month by which benefits [o separate accounts of key employees(as defined in Code Section 419(A)(d)(3)),or an
commence before the month in which the Participant attains age 62. individual medical account in which the Participant participated.For purposes of this paragraph,
if this Plan provides for voluntary or mandatory Employee contributions,such contributions will
In order to determine actuarial equivalence for this purpose,the not be considered a separate defined contribution plan maintained by the Employer.
lesser of the equivalent amount computed using the Plan interest rate and Plan
mortality table(or other tabular factor)and the amount computed using five 6.5 PARTICIPATION OR SERVICE REDUCTIONS
percent(5%)interest and the"Applicable Mortality Table"shall be used.The
mortality decrement shall be ignored to the extent that a forfeiture does not occur If a Participant has less than ten(10)years of participation in the Plan at the time
at death. - the Participant begins to receive benefits under the Plan,the limitations in Sections 6.2(a)(1)
and 6.3 shall be reduced by multiplying such limitations by a fraction(a)the numerator of which
(b) If the"annual benefit"begins after the Participant's Social Security is the number of years of participation(or part thereof)in the Plan and(b)the denominator of
Retirement Age the$90,000 limitation shall be increased so that it is the actuarial which is ten(10),provided,however,that said fraction shall in no event be less than 1/10th.The
equivalent of the$90,000 limitation at the Participant's Social Security Retirement limitations of Sections 6.2(a)(2)and 6.4 shall be reduced in the same manner except the
Age. In order to determine actuarial equivalence for this purpose,the lesser of preceding sentence shall be applied with respect to years of service with the Employer rather
the equivalent amount computed using the Plan interest rate and Plan mortality than years of participation in the Plan.
table(or other tabular factor)used for actuarial equivalence for late retirement
benefits under the Plan and the equivalent annual amount computed using five 6.6 ELIMINATION OF MULTIPLE PLAN REDUCTION
percent(5%)and the"Applicable Mortality Table"shall be used.The mortality
decrement shall be ignored to the extent that a forfeiture does not occur at death. Effective as of the first day of the first"limitation year"beginning on or after
January 1,2000(the"effective date"),and notwithstanding any other provision of the Plan,the
{c) For purposes of adjusting the"annual benefit"to a straight life Accrued Benefit for any Participant shall be determined without applying the limitations of Code
annuity,the equivalent"annual benefit"shall be the greater of the equivalent Section 415(e)as in effect on the day immediately prior to the"effective date."
"annual benefit"computed using the Plan interest rate and Plan mortality table
(or other tabular factor)and the equivalent"annual benefit"computed using five ARTICLE VII
percent(5%)interest rate assumption and the"Applicable Mortality Table."If the TRUSTEE
"annual benefit'is paid in a form other than a nondecreasing life annuity payable
for a period not less than the life of a Participant or,in the case of a 7.1 BASIC RESPONSIBILITIES OF THE TRUSTEE
Pre-Retirement Survivor Annuity,the life of the surviving spouse,the"Applicable
Interest Rate"shall be substituted for five percent(5%)In the preceding
sentence. (a) The Trustee shall have the following categories of responsibilities:
40 41
(1) Consistent with the"funding policy and method"determined by the (b) The Trustee may employ a bank or trust company pursuant to the
Employer,to invest,manage,and control the Plan assets subject, terms of its usual and customary bank agency agreement,under which the duties
however,to the direction of the Employer or an Investment Manager if the of such bank or trust company shall be of a custodial,clerical and record-keeping
Trustee should appoint such manager as to all or a portion of the assets nature.
of the Plan;
(2) At the direction of the Administrator,to pay benefits required 7.3 OTHER POWERS OF THE TRUSTEE
under the Plan to be paid to Participants,or,in the event of their death,to The Trustee,in addition to all powers and authorities under common law,
[heir Beneficiaries;and statutory authority,including the Act,and other provisions of the Plan,shall have the following
powers and authorities,to be exercised in the Trustee's sole discretion:
(3) To maintain records of receipts and disbursements and furnish to
the Employer and/or Administrator for each Plan Year a written annual (a) To purchase,or subscribe for,any securities or other property and
report pursuant to Section 7.7. to retain the same.In conjunction with the purchase of securities,margin
(b) In the event that the Trustee shell be directed by the Employer,or accounts may be opened and maintained;
an Investment Manager with respect to the investment of any or all Plan assets, (b) To sell,exchange,convey,transfer,grant options to purchase,or
the Trustee shall have no liability with respect to the investment of such assets, otherwise dispose of any securities or other property held by the Trustee,by
but shall be responsible only to execute such investment instructions as so private contract or at public auction.No person dealing with the Trustee shall be
directed. - bound to see to the application of the purchase money or to inquire into the
validity,expediency,or propriety of any such sale or other disposition,with or
(1) The Trustee shall be entitled to rely fully on the written(or other without advertisement;
form acceptable to the Administrator and the Trustee,including,but not
limited to,voice recorded)instructions of the Employer,or any Fiduciary (c) To vote upon any stocks,bonds,or other securities;to give
or nonfiduciary agent of the Employer,in the discharge of such duties, general or special proxies or powers of attorney with or without power of
and shall not be liable for any loss or other liability,resulting from such substitution;to exercise any conversion privileges,subscription rights or other
direction(or lack of direction)of the Investment of any part of the Plan options,and to make any payments incidental thereto;to oppose,or to consent
assets. to,or otherwise participate in,corporate reorganizations or other changes
affecting corporate securities,and to delegate discretionary powers,and to pay
(2) The Trustee may delegate the duty of executing such instructions any assessments or charges in connection therewith;and generally to exercise
to any nonfiduciary agent,which may be an affiliate of the Trustee or any any of the powers of an owner with respect to stacks,bonds,securities,or other
Plan representative. property.However,the Trustee shall not vote proxies relating to securities for
which it has not been assigned full investment management responsibilities.In
(c) If there shall be more than one Trustee,they shall act by a those cases where another party has such investment authority or discretion,the
majority of their number,but may authorize one or more of them to sign papers Trustee will deliver all proxies to said party who will then have full responsibility
on their behalf. for voting those proxies;
7.2 INVESTMENT POWERS AND DUTIES OF THE TRUSTEE (d) To cause any securities or other property to be registered in the
Trustee's own name,in the name of one or more of the Trustee's nominees,in a
(a) The Trustee shall invest and reinvest the Trust Fund to keep the clearing corporation,in a depository,or in book entry form or in bearer form,but
Trust Fund invested without distinction between principal and income and in such the books and records of the Trustee shall at all times show that all such
securities or property,real or personal,wherever situated,as the Trustee shall investments are part of the Trust Fund;
deem advisable,including,but not limited to,stocks,common of preferred,
open-end or closed-end mutual funds,bonds and other evidences of (e) To borrow or raise money for the purposes of the Plan in such
indebtedness or ownership,and real estate or any interest therein.The Trustee amount,and upon such terms and conditions,as the Trustee shall deem
shall at all times in making investments of the Trust Fund consider,among other advisable;and for any sum so borrowed,to issue a promissory note as Trustee,
factors,the short and long-term financial needs of the Plan on the basis of and to secure the repayment thereof by pledging all,or any part,of the Trust
information furnished by the Employee In making such investments,the Trustee Fund;and no person lending money to the Trustee shall be bound to see to the
shall not be restricted to securities or other property of the character expressly application of the money lent or to inquire into the validity,expediency,or
authorized by the applicable law for trust investments;however,the Trustee shall propriety of any borrowing;
give due regard to any limitations imposed by the Code or the Act so that at all
times the Plan may qualify as a qualified Pension Plan and Trust. (f) To keep such portion of the Trust Fund in cash or cash balances
as the Trustee may,from time to time,deem to be in the best interests of the
Plan,without liability for interest thereon;
42 43
__...-..... _.......— __—__.. _ _------._ ...-... ......-.- ........_ ... --- L.."-_ ....... ....._ ___ -_
i'
( such investments or accounts or any printed assets of the two or more trusts in
advisable
To accept and retain for such time as the Trustee may deem any securities or other property received or acquired as Trustee accordance with their respective interests;
hereunder,whether or not such securities or other property would normally be (r) To do all such acts and exercise all such rights and privileges,
purchased as investments hereunder; although not specifically mentioned herein,as the Trustee may deem necessary
to carry out the purposes of the Plan.
(h) To make,execute,acknowledge,and deliver any and all
documents of transfer and conveyance and any and all other instruments that 7A LOANS TO PARTICIPANTS
may be necessary or appropriate to carry out the powers herein granted;
(a) The Trustee may,in the Trustee's discretion,make loans to
(I) To settle,compromise,or submit to arbitration any claims,debts, Participants and Beneficiaries under the following circumstances:(1)loans shall
or damages due or owing to or from the Plan,to commence or defend suits or only be available to satisfy a Participant's obligation to an alternate payee under
legal or administrative proceedings,and to represent the Plan in all suits and a Qualified Domestic Relations Order,(2)loans shall be made available to all
legal and administrative proceedings; Participants and Beneficiaries on a reasonably equivalent basis;(3)loans shall
not be made available to Highly Compensated Employees in an amount greater
Q) To employ suitable agents and counsel and to pay[heir than the amount made available to other Participants and Beneficiaries;(4)loans
reasonable expenses and compensation,and such agent or counsel may or may shall bear a reasonable rate of interest;(5)loans shall be adequately secured;
not be agent or counsel for the Employer; and(6)loans shall provide for periodic repayment over a reasonable period of
me.
(k) To apply for and procure from responsible insurance companies, '
to be selected by the Administrator,as an investment of the Trust Fund such (b) Loans made pursuant to this Section(when added to the
annuity,or other Contracts(on the life of any Participant)as the Administrator outstanding balance of all other loans made by the Plan to the Participant)may,
shall deem proper;to exercise,at any time or from time to time,whatever rights in accordance with a uniform and nondiscriminatory policy established by the
and privileges may be granted under such annuity,or other Contracts;to collect, Administrator,be limited to the lesser of:
receive,and settle for the proceeds of all such annuity or other Contracts as and
when entitled to do so under the provisions thereof; (1) $25,000 reduced by the excess(if any)of the highest outstanding
balance of loans from the Plan to the Participant during the one year
(I) To invest funds of the Trust in time deposits or savings accounts period ending on the day before the date on which such loan is matle,
bearing a reasonable rate of interest or in cash or cash balances without liability over the outstanding balance of loans from the Plan to the Participant on
for interest thereon; the date on which such loan was made,or
(m) To Invest in Treasury Bills and other forms of United States (2) one-half(V2)of the present value of the non-forfeitable accrued
government obligations; benefit of the Participant under the Plan.
(n) To invest in shares of investment companies registered under the For purposes of this limit,all plans of the Employer shall be
Investment Company Act of 1940; considered one plan.Additionally,with respect to any loan made prior to January
(o) To sell,purchase and acquire put or call options if the options are 1,1987,the$25,000 limit specified in(1)above shall be announced.
traded on and purchased through a national securities exchange registered Notwithstanding the above,if the Participant is an affected
under the Securities Exchange Act of 1934,as amended,or,if the options are individual under Section 5.14,the total of all the affected individual's outstanding
not traded on a national securities exchange,are guaranteed by a member firm loans will not exceed the amount that such affected individual would be entitled
of the New York Stock Exchange regardless of whether such options are to under Section 5.14.
covered;
(c) Loans shall provide for level amortization with payments to be
(p) To deposit monies in federally insured savings accounts or made not less frequently than quarterly over a period not to exceed five(5)
certificates of deposit in banks or savings and loan associations; years..
(q) To pool all or any of the Trust Fund,from time to time,with assets (d) Any loan made pursuant to this Section after August 18,1985,
belonging to any other qualified employee pension benefit trust created by the where the Vested interest of the Participant is used to secure such loan shall
Employer or any Affiliated Employer,and to commingle such assets and make require the written(or such other form as permitted by the Internal Revenue
joint or common investments and carry joint accounts on behalf of this Plan and Service)consent of the Participant's spouse in a manner consistent with Section
Trust and such other trust or trusts,allocating undivided shares or Interests In 5.7(a)(2).Such written(or such other form as permitted by the Internal Revenue
Service)consent must be obtained within the ninety(90)day period prior to the
44 45
_._ ...._.—...__—— ..... .....__ .._.. —_. _. ._..... _.......----_ —----- i_ _._.... .. _ _....__
date the loan is made.Any security interest held by the Plan by reason of an 7.6 TRUSTEE'S COMPENSATION AND EXPENSES AND TAXES
outstanding loan to the Participant shall be taken into account in determining the
amount of the death benefit or the Pre-Retirement Survivor Annuity.However,no The Trustee shall be paid such reasonable compensation as set forth in the
spousal consent shall be required under this paragraph K the total accrued Trustee's fee schedule(if the Trustee has such a schedule)or as agreed upon in writing by the
benefit subject to the security is not in excess of$5,000 1$3,500 for Plan Years Employer and the Trustee.However,an individual serving as Trustee who already receives
beginning prior to August 6, 1997), full-time pay from the Employer shall not receive compensation from the Plan.In addition,the
Trustee shall be reimbursed for any reasonable expenses,including reasonable counsel fees
(e) Any loans granted or renewed shall be made pursuant to a incurred by it as Trustee.Such compensation and expenses shall be paid from the Trust Fund
Participant loan program.Such loan program shall be established in writing and unless paid or advanced by the Employer.All taxes of any kind whatsoever that may be levied
must include,but need not be limited to,the following: unless
assessed under existing or future laws upon,or in respect of,the Trust Fund or the income
(1) the identity of the person or positions authorized to administer the thereof,shall be paid from the Trust Fund.
Participant loan program; 7.7 ANNUAL REPORT OF THE TRUSTEE
(2) a procedure for applying for(oens; (a) Within a reasonable period of time after the later of the
Anniversary Date or receipt of the Employer contribution for each Plan Year,the
(3) the basis on which loans will be approved or denied; Trustee,or its agent,shall furnish to the Employer and Administrator a written
statement of account with respect to the Plan Year for which such contribution
(4) limitations,if any,on the types and amounts of loans offered, was made setting forth:
including what constitutes a hardship or financial need;
(5) the procedure under the program for determining a reasonable (1) the net income,or loss,of the Trust Fund;
rate of interest; 12) the gains,or losses,realized by the Trust Fund upon sales or
other disposition of the assets;
(6) the types of collateral which may secure a Participant loan;and
(7) the events constituting default and the steps that will be taken to (3) the Increase,or decrease,In the value of the Trust Fund;
preserve Plan assets. (4) all payments and distributions made from the Trust Fund;and
Such Participant loan program shall be contained in a separate (5) such further information as the Trustee and/or Administrator
written document which,when properly executed,is hereby incorporated by deems appropriate.
reference and made a part of the Plan.Furthermore,such Participant loan
program may be modified or amended in writing from time to time without the (b) The Employer,promptly upon its receipt of each such statement of
necessity of amending this Section. account,shall acknowledge receipt thereof in writing and advise the Trustee
and/or Administrator of its approval or disapproval thereof.Failure by the
(f) Notwithstanding anything in this Plan to the contrary,if a Employer to disapprove any such statement of account within thirty(30)days
Participant or Beneficiary defaults on a loan made pursuant to this Section,then after its receipt thereof shall be deemed an approval thereof.The approval by the
the loan default will be a distributable event to the extent permitted by the Code Employer of any statement of account shall be binding on the Employer and the
and Regulations. Trustee as to all matters contained in the statement to the same extent as if the
account of the Trustee had been settled by judgment or decree in an action for a
(g) Notwithstanding anything in this Section to the contrary,any loans judicial settlement of its account in a court of competent jurisdiction in which the
made prior to the date this amendment and restatement is adopted shall be Trustee,the Employer and all persons having or claiming an interest in the Plan
subject to the terms of the plan in effect at the time such loan was made. were parties.However,nothing contained in this Section shall deprive the
7.5 DUTIES OF THE TRUSTEE REGARDING PAYMENTS Trustee of its right to have its accounts judicially settled if the Trustee so desires.
7.8 AUDIT
At the direction of the Administrator,the Trustee shall,from time to time,in
accordance with the terms of the Plan,make payments out of the Trust Fund.The Trustee shall III (a) If an audit of the Plan's records shall be required by the Act and
not be responsible in any way for the application of such payments, the regulations thereunder for any Plan Year,the Administrator shall direct the
Trustee to engage on behalf of all Participants an independent qualified public
accountant for that purpose.Such accountant shall,after an audit of the books
and records of the Plan in accordance with generally accepted auditing
standards,within a reasonable fiend after the close of the Plan Year,furnish to
46 47
the Administrator and the Trustee a report of the audit setting forth the approval by the Employer of annual statements of account shall apply to any
accountant's opinion as to whether any statements,schedules or lists that are special statement of account rendered hereunder
required by Act Section 103 or the Secrets of Labor to be filed with the Plan's p e er provided
and approval by the Employer
Secretary of any such special statement m the manner providetl is Section 7.7 shall have
annual report,are presented fairly in conformity with generally accepted the same effect upon the statement as the Employer's approval of an annual
accounting principles applied consistently, statement of account.No successor to the Trustee shall have any duty or
responsibility to investigate the acts or transactions of any predecessor who has
(b) All auditing and accounting fees shall be an expense of and may, rendered all statements of account required by Section 7.7 and this
at the election of the Employer,be paid from the Trust Fund- subparagraph.
(c) If some or all of the information necessary to enable the 7.10 TRANSFER OF INTEREST
Administrator to comply with Act Section 103 is maintained by a bank,insurance
company,or similar institution,regulated,supervised,and subject to periodic Notwithstanding any other provision contained in this Plan,the Trustee at the
examination by a state or federal agency,then it shall transmit and certify the direction of the Administrator shall transfer the Vested interest,if any,of a Participant to another
accuracy of that information to the Administrator as provided in Act Section trust forming part of a pension.,profit sharing or stock bonus plan maintained by such
103(b)within one hundred twenty(120)days after the end of the Plan Year or Participant's new employer and represented by said employer in writing as meeting the
such other date as may be prescribed under regulations of the Secretary of requirements of Code Section 401(a),provided that the trust to which such transfers are made
Labor.
- permits the transfer to be made,
7.9 RESIGNATION,REMOVAL AND SUCCESSION OF TRUSTEE - 7.11 TRUSTEE INDEMNIFICATION
(a) Unless otherwise agreed to_by both the Trustee and the Employer, The Employer agrees to indemnify and hold harmless the Trustee against any
a Trustee may resign at any time by delivering to the Employer,at least thirty and all claims,losses,damages,expenses and liabilities the Trustee may incur in the exercise
(30)days before its effective sate,a written notice of resignation. and performance of the Trustee's power and duties hereunder,unless the same are determined
to be due to gross negligence or willful misconduct.
(b) Unless otherwise agreed to by both the Trustee and the Employer,
the Employer may remove a Trustee at any time by delivering to the Trustee,at 7.12 DIRECT ROLLOVER
least thirty(30)days before its effective date,a written notice of such Trustee's
removal (a) Notwithstanding any provision of the Plan to the contrary that
would otherwise limit a"tlistributee's"election under this Section,a'distributed"
(c) Upon the death,resignation,incapacity,or removal of any may elect,at the time and in the manner prescribed by the Administrator,to have
Trustee,a successor may be appointed by the Employer;and such successor, any portion of an"eligible rollover disMbution"that is equal to at(east$500 paid
upon accepting such appointment in writing and delivering same to the Employer, directly to an"eligible retirement plan"specified by the"distributes"in a"direct
shall,without further act,become vested with all the powers and responsibilities I rollover."
of the predecessor as if such successor had been originally narned as a Trustee
herein.Until such a successor is appointed,the remaining Trustee or Trustees (b) For purposes of this Section the following definitions shall apply:
shall have full authority to act under the terms of the Plan.
(1) An"eligible rollover distribution"is any distribution of all or any
(d) The Employer may designate one more successors prior to the portion of the balance to the credit of the"distributes,'except that an
death,resignation,incapacity,or removal of a Trustee.
ee.In the event a successor "eligible rollover distribution'does not include:any distribution that is one
is so designated by the Employer and accepts such designation,the successor of a series of substantially equal periodic payments(not less frequently
shall,without further act,become vested with all the powers and responsibilities I than annually)made for the life(or life expectancy)of the"distributed"or
of the predecessor as if such successor had been originally named as Trustee the joint lives(or joint life expectancies)of the"distributee"and the
herein immediately upon the death,resignation,incapacity,or removal of the "tlistributee's"designated beneficiary,or for a specified period of ten
predecessor. years or more;any distribution to the extent such distribution is required
under Code Section 401(a)(9);the portion of any other distribution that Is
(e) Whenever any Trustee hereunder closes to serve as such,the not includible in gross income(determined without regard to the exclusion
Trustee shall furnish to the Employer and Administrator a written statement of for net unrealized appreciation with respect to employer securities);any
account with respect to the portion of the Plan Year during which the individual or hardship distribution described In Code Section 401(kh2)(8)b)(IV)made
entity served as Trustee.This statement shall be either(i)included as part of the after December 31, 1999;and any other distribution that is reasonably
annual statement of account for the Plan Year required under Section 7,7 or expected to total less than$200 during a year.
(it)set forth in a special statement.Any such special statement of account should
be rendered to the Employer no later than the due date of the annual statement 1, (2) An"eligible retirement plan"is an individual retirement account
of account for the Plan Year.The procedures set forth in Section 7.7 for the described in Code Section 408(a),an individual retirement annuity
48 i 49
i
described in Code Section 408(b),an annuity plan described in Code the Plan Year in which the amendment takes effect is less than sixty percent
Section 403(a),or a qualified trust described in Code Section 401(a),that (60%),including the amount of the unfunded current liability under the Plan
accepts the"distrlbutee's""eligible rollover distribution."However,in the attributable to the amendment,the amendment shall not take effect until the
case of an"eligible rollover distribution"to the surviving spouse,an Employer(or any member of a controlled group which includes the Employer)
"eligible retirement plan"is an individual retirement account or individual provides security to the Plan.The form and amount of such security shall satisfy
retirement annuity. the requirements of Code Section 40 1(a)(29)(B)and(C).Such security may be
(3) A"tlistributee°includes an Employee or former Employee.In released provided the requirements of Code Section 401(a)(29)(D)are satisfied.
addition,the Employee's or former Employee's surviving spouse and the ARTICLE IX
Employee's or former Employee's spouse or former spouse who is the PLAN TERMINATION
alternate payee under a qualified domestic relations order,as defined in
Code Section 414(p),are"distributees"with regard to the interest of the 9.1 TERMINATION
spouse or former spouse.
(a) The Employer shall have the right to terminate the Plan by
(4) A"direct rollover"is a payment by the Plan to the"eligible delivering to the Trustee and Administrator written notice of such termination.
retirement plan"specified by the"tlistributee." Upon any termination(full or partial),all amounts shall be allocated in
accordance with the provisions hereof and the Accrued Benefit,to the extent
ARTICLE funded as of such date,of each affected Participant shall become fully Vested
PLAN AMENDMENT and shall not thereafter be subject to forfeiture.However,Participants who were
not fully Vested at the time they received a complete distribution of their benefits
8.1 AMENDMENT prior to the date of termination,shall not become entitled to any additional
benefits on account of Plan termination.The preceding sentence does not apply
(a) The Employer shall have the right at any time to amend this Plan. to Participants affected by a partial termination by operation of law.Upon full
subject to the limitations of this Section.However,any amendment which affects termination of the Plan,the Employer shall direct the distribution of the assets in
the rights,duties or responsibilities of the Trustee or Administrator may only be the Trust Fund to the Participants in a manner which is consistent with Section
made with the Trustee's or Administrator's written consent.Any such amendment 5.7.In such case,the Trustee shall distribute the assets to the remaining
shall become effective as provided therein upon its execution,The Trustee shall Participants in the Plan and to retired Participants in cash or through the
not be required to execute any such amendment unless the amendment affects purchase of irrevocable deferred commitments from an insurer,subject to
the duties of the Trustee hereunder. i provision for expenses of administration or liquidation.Such distributions shall be
' allocated In the following order to the extent of the sufficiency of such assets,
(b) No amendment to the Plan shall be effective if it authorizes or basing such allocation on the Accrued Benefit for each such Participant at the
permits any part of the Trust Fund(other than such part as is required to pay date of termination of the Plan:
taxes and administration expenses)to be used for or diverted to any purpose
other than for the exclusive benefit of the Participants or their Beneficiaries or (1) to provide pensions to retired Participants who have retired under
estates;or causes any reduction in the Accrued Benefit of any Participant the Plan prior to its termination without reference to the order of
(except to the extent permitted under Code Section 412(c)(8));or causes or retirement;
permits any portion of the Trust Fund to revert to or become property of the
Employer. 12) to provide Normal Retirement Benefits to Participants who have
reached their Normal Retirement Dates but have not retired on the date of
(c) Except as permitted by Regulations,no Plan amendment or termination,without reference to the order in which they shall have
transaction having the effect of a Plan amendment(such as a merger,plan reached their Normal Retirement Date;
transfer or similar transaction)shall be effective to the extent it eliminates or
reduces any"Section 411(d)(6)protected benefit"or adds or modifies conditions (3) to provide Normal Retirement Benefits to Participants who have
relating to"Section 411(d)(6)protected benefits"which results in a further not yet reached their Normal Retirement Date on the date of termination,
restriction on such benefit unless such"Section 411(d)(6)protected benefits"are without reference to the order in which they will reach their Normal R D
preserved with respect to benefits accrued as of the later of the adoption date or Retirement ate.Such benefits will be based upon Accrued Benefits as
effective date of the amendment."Section 411(d)(6)protected benefits"are the date termination.The balance,if any,of the assets due to
benefits described in Code Section 411(d)(6)(A),early retirement benefits and erroneous actuarial computation held by the Trust Fund after such
retirement-type subsidies,and optional forms of benefit. allocation shall be returned to the Employer,but only after the satisfaction
(d) If this Plan is amended and an effect of such amendment is to of all liabilities with respect to Participants and pensions under the Plan.
�.
Increase current liability(as defined In Code Section 401(a)(29)(E))under the
Plan for a Plan Year,and the funded current liability percentage of the Plan for
50 51
9.2 LIMITATION OF BENEFITS ON PLAN TERMINATION
( 'Aggregation Group"means either a Required Aggregation Group
In the event of Plan termination,the benefit any Highly Compensated or a Permissive Aggregation Group as hereinafter determined.
Participant or any highly compensated former employee shall
toabenefit be limited to a benefit that is
nondiscriminatory under Code Section 401(a)(4).
(1) Required Aggregation Group:In determining a Required
ARTICLE X Aggregation Group hereunder,each plan of the Employer in which a Key
Employee is a participant in the Plan Year containing the Determination
MERGER,CONSOLIDATION OR TRANSFER OF ASSETS Date or any of the four preceding Plan Years,and each other plan of the
Employer which enables any plan in which a Key Employee participates t0.1 REQUIREMENTS to meet the requirements of Code Sections 401(a)(4)or 410,will be
Before this Plan can be merged or consolidated with any other qualified plan or required to be aggregated.Such group shall be known as a RequiredAggregation Group.
its assets or liabilities transferred to any other qualified plan,the Administrator must secure(and
file with the Secretary of Treasury at least thirty(30)days beforehand)a certification from a In the case of a Required Aggregation Group,each plan in the group will
government-enrolled actuary that the benefits which would be received by a Participant of this be considered a Top Heavy Plan if the Required Aggregation Group is a
Plan,in the event of a termination of the Plan immediately after such transfer,merger or Top Heavy Group.No plan in the Required Aggregation Group will be
consolidation,are at(east equal to the benefits the Participant would have received if the Plan considered a Top Heavy Plan if the Required Aggregation Group is not a
had terminated immediately before the transfer,merger or consolidation,and such transfer, Top Heavy Group.
merger or consolidation does not otherwise result in the elimination or reduction of any"Section
411(d)(6)protected benefits"as described in Section 6.1. (2) Permissive Aggregation Group:The Employer may also include
any other plan not required to be included in the Required Aggregation
ARTICLE XI Group,provided the resulting group,taken as a whole,would continue to
TOP HEAVY ! satisfy the provisions of Code Sections 401(a)(4)and 410.Such group
11.1 TOP HEAVY PLAN REQUIREMENTS
shall be known as a Permissive Aggregation Group.
In the case of a Permissive Aggregation Group,only a plan that is part of
For any Top Heavy Plan Year,the Plan shall provide the special vesting the Required Aggregation Group will be considered a Top Heavy Plan if
requirements of Code Section 416(b)pursuant to Section 5.6 of the Plan and the special the Permissive Aggregation Group is a Top Heavy Group.No plan in the
minimum benefft requirements of Code Section 416(e)pursuant to Section 5.2 of the Plan. Permissive Aggregation Group will be considered a Top Heavy Plan if the
11.2 DETERMINATION OF TOP HEAVY STATUS
Permissive Aggregation Group is not a Top Heavy Group.
(3) Only those plans of the Employer in which the Determination
(a) This Plan shall be a Top Heavy Plan for any Plan Year in which, Dates fall within the same calendar year shall be aggregated in order to
as of the Determination Date,(1)the Present Value of Accrued Benefits of Key determine whether such plans are Top Heavy Pians.
Employees and(2)the sum of the Aggregate Accounts of Key Employees under
this Plan and ail plans of an Aggregation Group,exceeds sixty percent(60%)of (4) An Aggregation Group shall include any terminated plan of the
the Present Value of Accrued Benefits and the Aggregate Accounts of all Key Employer if it was maintained within the last five(5)years ending on the
and Non-Key Employees under this Plan and all plans of an Aggregation Group, Determination Date.
If any Participant is a Non-Key Employee for any Plan Year,but (d) "Determination Date"means(a)the last day of the preceding Plan
such Participant was a Key Employee for any prior Plan Year,such Participant's Year,or(b)in the case of the first Plan Year,the last day of such Plan Year.
Present Value of Accrued Benefit and/or Aggregate Account balance shall not be
taken into account for purposes of determining whether this Plan is a Top Heavy (e) Present Value of Accrued Benefit:In the case of a defined benefit
Plan(or whether any Aggregation Group which includes this Plan is a Top Heavy plan,a Participant's Present Value of Accrued Benefit shall be determined:
Group).in addition,if a Participant or Former Participant has not performed any
services for any Employer maintaining the Plan at any time during the five year (1) in the case of a Participant other than a Key Employee,using the
period ending on the Determination Date,any accrued benefit for such single accrual method used for all plans of the Employer and Affiliated
Participant or Former Participant shall not be taken into account for the purposes Employers,or it no such single method exists,using a method which
of determining whether this Plan is a Top Heavy Plan, results in benefits accruing not more rapidly than the slowest accrual rate
permitted under Code Section 411 b 1 C.
(b) Aggregate Account:A Participant's Aggregate Account as of the i
Determination Date shall be determined under applicable provisions of the
defined contribution plan used in determining Top Heavy Plan status.
52 53
(2) as of the most recent"actuarial valuation date,"which is the most
recent valuation date within a twelve(12)month period ending on the (4) with respect to unrelated rollovers and plan-to-plan transfers(ones
Determination Date. which are both initiated by the Employee and made from a plan
maintained by one employer to a'plan maintained by another employer),if
(3) -for the first Plan Year,as if(a)the Participant terminated service this Plan provides the relievers or plan-to-plan transfers,it shall always
as of the Determination Date;or(b)the Participant terminated service as consider such rollovers or plan-to-plan transfers as a distribution for the
of the actuarial valuation date,but taking into account the estimated
Accrued Benefits as of the Determination Date. purposes this Section.If this Plan is the plan accepting such rollovers
or pan-to-plan
an transfers,it shall not consider such rollovers or
plan-to-plan transfers accepted after December 31,1983,as part of the
(4) for the second Plan Year,the Accrued Benefit taken into account Participant's Present Value of Accrued Benefit.However,rollovers or
for a current Participant must not be less than the Accrued Benefit taken plan-to-plan transfers accepted prior to January 1, 1984 shall be
into account for the first Plan Year unless the ter is attributable to considered as part of the Participant's Present Value of Accrued Benefit.
using an estimate of the Accrued Benefit as off the Determination Date for
the first Plan Year and using the actual Accrued Benefit for the second (5) with respect to related rollovers and plan-to-plan transfers(ones
Plan Year. either not initiated by the Employee or made to a plan maintained by the
same employer),if this Plan provides the rollovers or plan-to-plan
(5) for any other Plan Year,as if the Participant terminated service as I transfers,it shall not be counted as a distribution for purposes of this
of the actuarial valuation date. Section.If this Plan is the plan accepting such rollovers or plan-m-plan
transfers,it shall consider such rollovers or plan-to-plan transfers as part
(6) the actuarial valuation date must be the same date used for of the Participant's Present Value of Accrued Benefit,irrespective of the
computing the defined benefit plan minimum funding costs,regardless of whether a valuation is performed that Plan Year. date on which such rollovers or plan-to-plan transfers are accepted.
(6) for the purposes of determining whether two employers are to be
(7) by not taking into account proportional subsidies. treated as the same employer in(4)and(5)above,all employers
aggregated under Code Section 414(b),(c),(in)or(a)are treated as the
(8) by taking into account nonproportional subsidies. same employer.
(f) The calculation of a Participant's_Present Value of Accrued Benefit (g) "Top Heavy Group"means an Aggregation Group in which,as of
as of a Determination Dale shall be the sum of: the Determination Date,the sum of:
(i) the Present Value of Accrued Benefit using the actuarial (1) the Present Value of Accrued Benefits of Key Employees under all
assumptions of Section 1.3,which assumptions shall be identical for all defined benefit plans included in the group,and
defined benefit plans being tested for Top Heavy Plan status.
(2) the Aggregate Accounts of Key Employees under all defined
(2) any Plan distributions made within the Plan Year that includes the contribution plans included in the group,
Determination Date or within the four(4)preceding Plan Years.However,
in the case of distributions made after the valuation date and prior to the exceeds sixty percent(fill%)of a similar sum determined for all
Determination Date,such distributions are not included as distributions for Participants.
top heavy purposes to the extent that such distributions are already
included in the Participant's Present Value of Accrued Benefit as of the ARTICLE XII
valuation date.Notwithstanding anything herein to the contrary,all MISCELLANEOUS
distributions,including distributions made prior to January 1, 1984,and
distributions under a terminated plan which if it had not been terminated li 12A PARTICIPANT'S RIGHTS
would have been required to be included in an Aggregation Group,will be
counted Further,benefits paid on account of death,to the extent such This Plan shall not be deemed to constitute a contract between the Employer and
benefits do not exceed the Present Value of Accrued Benefits existing any Participant or to be a consideration or an inducement for the employment of any Participant
immediately prior to death,shall be treated as distributions for the or Employee.Nothing contained in this Plan shaft be deemed to give any Participant or
purposes of this paragraph. Employee the right to be retained in the service of the Employer or to interfere with the right of
the Employer to discharge any Participant or Employee at any time regardless of the effect
(3) any Employee contributions,whether voluntary or mandatory. which such discharge shalt have upon the Employee as a Participant of this Plan.
However,amounts attributable to tax deductible Qualified Voluntary
Employee Contributions shall not be considered to be a part of the
Participant's Present Value of Accrued Benefit.
54 55
12.2 ALIENATION pre-retirement survivor annuity is in effect in accordance with the
(a) Subject to the exceptions provided below,and a5 otherwise requirements of Code Section 417(a),
permitted by the Code and the Act,no benefit which shall be payable out of the (2) such spouse is ordered or required in such judgment,order,
Trust Fund to any person(including a Participant or the Participant's Beneficiary) decree or settlement to pay an amount to the Plan in connection with a
shall be subject in any manner to anticipation,alienation,sale,transfer, vioiaGon of fiduciary duties,or
assignment,pledge,encumbrance,or charge,and any attempt to anticipate,
alienate,sell,transfer,assign,pledge,encumber,or charge the same shall be (3) in such judgment,order,decree or settlement,such spouse
void;and no such benefit shall in any manner be liable for,or subject to,the retains the right to receive the survivor annuity under a qualified joint and
debts,contracts,liabilities,engagements,or torts of any such person,nor shall it j survivor annuity provided pursuant to Code Section 401(a)(11)(A)(i)and
be subject to attachment or legal process for or against such person,and the under a qualified pre-retirement survivor annuity provided pursuant to
same shall not be recognized by the Trustee,except to such extent as may be Code Section 401(a)(11)(A)(II).
required by law.
(o) Subsection(a)shall not apply to the extent a Participant or 12.3 CONSTRUCTION OF PLAN
Beneficiary is indebted to the Plan,by reason of a loan made pursuant to This Plan and Trust shall be construed and enforced according to the Code,the
Section 7.4.At the time a distribution is to be made to or for a Participant's or Act and the laws of the State of California,other than its laws respecting choice of law,to the
Beneficiary's benefit,such proportion of the amount to be distributed as shall extent not pre-empted by the Act.
equal such indebtedness shall be paid to the Plan,to apply against or discharge
such indebtedness.Prior to making a payment,however,the Participant or 12.4 GENDER AND NUMBER
Beneficiary must be given written notice by the Administrator that such
indebtedness is to be so paid in whole or part from the Participant's Accrued Wherever any words are used herein in the masculine,feminine or neuter
Benefit.If the Participant or Beneficiary does not agree that the indebtedness is a gentler,they shall be construed as though they were also used in another gentler in all cases
valid claim against the Vested Participant's Accrued Benefit,the Participant or where they would so apply,and whenever any words are used herein in the singular or plural
Beneficiary shall be entitled to a review of the validity of the claim in accordance form,they shall be construed as though they were also used in the other form in all cases where
with procedures provided in Sections 2.7 and 2.8. they would so apply.
(c) Subsection(a)shall not apply to a"qualified domestic relations 12.5 LEGAL ACTION
order"defined in Code Section 414(p),and those other domestic relations orders
permitted to be so treated by the Administrator under the provisions of the in the event any claim,suit,or proceeding is brought regarding the Trust andlor
Retirement Equity Act of 1984.The Administrator shall establish a written i Plan established hereunder to which the Trustee,the Employer or the Administrator may be a
procedure to determine the qualified status of domestic relations orders and to party,and such claim,suit,or proceeding is resolved in favor of the Trustee,the Employer or
administer distributions under such qualified orders.Further,to the extent the Administrator,they shall be entitled to be reimbursed from the Trust Fund for any and all
provided under a"qualified domestic relations order,"a former spouse of a costs,allorney's fees,and other expenses pertaining thereto incurred by them for which they
Participant shall be treated as the spouse or surviving spouse for all purposes shall have become liable.
under the Plan.
(it) Subsection(a)shall not apply to an offset to a Participant's 12.6 PROHIBITION AGAINST DIVERSION OF FUNDS
accrued benefit against an amount that the Participant is ordered or required to (a} Except as provided below and otherwise specifically permitted by
pay the Plan with respect to a judgment,order,or decree issued,or a settlement law,it shall be impossible by operation of the Plan or of the Trust,by termination
entered into,on or after August 5, 1997,in accordance with Code Sections of either,by power of revocation or amendment,by the happening of any
401(a)(13)(C)and(D).In a case In which the survivor annuity requirements of contingency,by collateral arrangement or by any other means,for any part of the
Code Section 401(a)(11)apply with respect to distributions from the Plan to the corpus or income of any Trust Fund maintained pursuant to the Plan or any funds
Participant,if the Participant has a spouse at the time at which the offset is to be contributed thereto to be used for,or diverted to,purposes other than the
made: exclusive benefit of Participants,Former Participants,or their Beneficiaries.
(1) either such spouse has consented in writing to such offset and (b) in the event the Employer shall make an excessive contribution
such consent is witnessed by a notary public or representative of the Plan under a mistake of fact pursuant to Act Section 403(c)(2)(A),the Employer may
(or it is established to the satisfaction of Pi representative that such demand repayment of such excessive contribution at any time within one(1)year
Code Section 417(a consent may not ( obtained by reason o of circumstances described in following the time of payment and the Trustees shall return such amount to the
)(2)(B)),or an election to waive the right of the Employer within the one(1)year period.Earnings of the Plan attributable to the
Spouse to either a qualified joint and survivor annuity or a qualified contributions may not be returned to the Employer but any losses attributable
thereto must reduce the amount so returned.
56 57
the provisions of the Plan,authorizing or providing for such direction,information or action.
12.7 EMPLOYER'S AND TRUSTEE'S PROTECTIVE CLAUSE
Furthermore,each named Fiduciary may rely upon any such direction,information or action of
another named Fiduciary as being proper under the Plan,and is not required under the Plan to
The Employer,Administrator and Trustee,and their successors,shall not be 3, inquire into the propriety of any such direction,information or action.It is intended under the
responsible for the validity of any Contract issued hereunder or for the failure on the part of the Plan that each named Fiduciary shall be responsible for the proper exercise of its own powers,
insurer to make payments provided by any such Contract,or for the action of any person which duties,responsibilities and obligations under the Plan as specified or allocated herein.No
may delay payment or render a Contract null and void or unenforceable in whole or in part. named Fiduciary shall guarantee the Trust Fund in any manner against investment loss or
depreciation in asset value.Any person or group may serve in more than one Fiduciary
I2.8 INSURERS PROTECTIVE CLAUSE capacity.
Except as otherwise agreed upon in writing between the Employer and the 12.12 HEADINGS
insurer,an insurer which issues any Contracts hereunder shall not have any responsibility for
the validity of this Plan or for the tax or legal aspects of this Plan.The insurer shall be protected The headings and subheadings of this Plan have been inserted for convenience
and held harmless in acting in accordance with any written direction of the Trustee,and shall of reference and are to be ignored in any construction of the provisions hereof.
have no duty to see to the application of any funds paid to the Trustee,nor be required to
question any actions directed by the Trustee.Regardless of any provision of this Plan,the 12.13 APPROVAL BY INTERNAL REVENUE SERVICE
insurer shall not be required to take or permit any action or allow any benefit or privilege
contrary to the terms of any Contract which it issues hereunder,or the rules of the insurer. i Notwithstanding anything herein to the contrary,if,pursuant to an application for
qualification filed by or on behalf of the Plan by the time prescribed by law for filing the
12.9 RECEIPT AND RELEASE FOR PAYMENTS Employers return for the taxable year in which the Plan is adopted,or such later date that the
Secretary of the Treasury may prescribe,the Commissioner of Internal Revenue Service or the
Any payment to any Participant,the Participant's legal representative, Commissioner's delegate should determine that the Plan does not initially qualify as a
Beneficiary,or to any guardian or committee appointed for such Participant or Beneficiary in tax-exempt plan under Code Sections 401 and 501,and such determination is not contested,or
accordance with the provisions of the Plan,shall,to the extent thereof,be in full satisfaction of if contested,is finally upheld,then if the Plan is a new plan,it shall be void do initio and all
all claims hereunder against the Trustee and the Employer,either of whom may require such amounts contributed to the Plan by the Employer,less expenses paid,shaft be returned within
Participant,legal representative,Beneficiary,guardian or committee,as a condition precedent one(1)year and the Plan shall terminate,and the Trustee shall be discharged from all further
to such payment,to execute a receipt and release thereof in such form as shall be determined obligations.if the disqualification relates to an amended plan,then the Plan shall operate as if it
by the Trustee or Employer, had not been amended.
12.10 ACTION BY THE EMPLOYER 12.14 UNIFORMITY
Whenever the Employer under the terms of the Plan is permitted or required to Ail provisions of this Plan shall be interpreted and applied in a uniform,
do or perform any act or matter or thing,it shall be done and performed by a person duly nondiscriminatory manner.In the event of any conflict between the terms of this Plan and any
authorized by its legally constituted authority.
Contract purchased hereunder,the Plan provisions shall control.
12.11 NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY
The"named Fiduciaries*of this Plan are(1)the Employer,(2)the Administrator,
(3)the Trustee,and(4)any Investment Manager appointed hereunder.The named Fiduciaries
shall have only those specific powers,duties,responsibilities,and obligations as are specifically
given them under the Plan,including,but not limited to,any agreement allocating of delegating
their responsibilities,the terms of which are incorporated herein by reference.In general,the
Employer shall have the sole responsibility for making the contributions provided for under
Section 4.1;and shall have the authority to appoint and remove the Trustee and the
Administrator:to formulate the Plan's"funding policy and method":and to amend or terminate,
in whole or in part,the Plan.The Administrator shall have the sole responsibility for the
administration of the Plan,including,but not limited to,the items specified at Article 11 of the
Plan,as the same may be allocated or delegated thereunder.The Trustee shall have the sole
responsibility of management of the assets held under the Trust,except to the extent directed
pursuant to Article 11 or with respect to those assets,the management of which has been
assigned to an Investment Manager,who shall be solely responsible for the management of the
assets assigned to it,all as specifically provided in the Plan.Each named Fiduciary warrants
that any directions given,information furnished,or action taken by it shall be in accordance with i
58 59
---- --------- ------------- - - ---------
-----------
above written, IN WITNESS WHEREOF,this Plan has been executed the day and year first CERTIFICATE OF CORPORATE RESOLUTION
Truckee Donner Public Utility District
The undersigned Secretary of Truckee Donner Public Utility District(the
Corporation)hereby certifies that the following resolutions were duty adopted by the board of
directors of the Corporation on_,and that such resolutions have not
By been modified or rescinded as of the date hereof:
EMPLOYER
RESOLVED,that the farm of amended Pension Plan and Trust effective January
Title 1,2001,presented to this meeting is hereby approved and adopted and that the proper officers
Joseph R.Aquera,J.Ronald Hemig,James of the Corporation are hereby authorized and directed to execute and deliver to the Trustee of
A.Maass,Patricia S.Sutton and Nelson the Plan one of more counterparts of the Plan.
Van Gunny RESOLVED,that Joseph R.Aguera,J.Ronald Hemig,James A.Maass,Patricia
S.Sutton,and Nelson Van Gundy are confirmed as Trustees of the Pension Plan and Trust.
BY that for purposes of the limitations on contributions and benefits
TRUSTEE under the Plan, prescribed by Section 415 of the Internal Revenue Code,the"limitation year"
TRUSTEE shall be the Calendar Year.
RESOLVED,that the proper officers of the Corporation shall act as soon as
possible to notify the employees of the Corporation of the adoption of the Pension Plan by
TRUSTEE delivering to each employee a copy of the summary description of the Plan in the form of the
Summary Plan Description presented to this meeting,which form is hereby approved.
The undersigned further certifies that attached hereto as Exhibits A,6 and C,
TRUSTEE respectively,are true copies of Truckee Donner Public Utility District Defined Benefit Plan as
amended and restated,Summary Plan Description and Funding Policy and Method approved
TRUSTEE and adopted in the foregoing resolutions.
Secretary
Date
i
60
- --------- - --------
_ -
TRUCKEE DONNER PUBLIC UTILITY DISTRICT DEFINED BENEFIT PLAN
FUNDING POLICY AND METHOD
A pension benefit plan las defined in the Employee Retirement Income Security
Act of 1974)has been adopted by the company for the purpose of rewarding long and loyal
service to the company by providing to employees additional financial security at retirement.
Incidental benefits are provided in the case of disability,death or other termination of
employment.
Since the principal purpose of the plan is to provide benefits at normal retirement
age,the principal goal of the investment of the funds in the plan should be both security and ,
long-term stability with moderate growth commensurate with the anticipated retirement dates of
participants.Investments,other than"fixed dollar"investments,should be included among the
plan's investments to prevent erosion by inflation.However,investments should be sufficiently
liquid to enable the plan,on short notice,to make some distributions in the event of the death or
disability of a participant.
i
AMENDMENT 0F THE PLAN FOR EGTRRA
AND REVENUE RULING 2081-62
AMENDMENT NUMBER ONE T0
TRUCKEED(}NNER PUBLIC UTILITY DISTRICT DEFINED BENEFIT PLAN
AMENDMENT OF THE PLAN FOR EGTRRA
AND REVENUE RULING 2001-62
AMENDMENT NUMBER ONE TO
TRUCKEE DONNER PUBLIC UTILITY DISTRICT DEFINED BENEFIT PLAN
BY THIS AGREEMENT, Truckee Donner Public Utility District Defined Benefit
Plan (herein referred to as the Plan) is hereby amended as follows:
ARTICLE I
PREAMBLE
1.1 Adoption and effective date of amendment. This amendment of the Plan is adopted to
reflect certain provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001
(EGTRRA) and the model amendment of Revenue Ruling 2001-62. This amendment is
intended as good faith compliance with the requirements of EGTRRA and the model
amendment of Revenue Ruling 2001-62 and is to be construed in accordance with EGTRRA
and the model amendment of Revenue Ruling 2001-62 and guidance issued thereunder. Except
as otherwise provided, this amendment shall be effective as of the first day of the first Plan Year
beginning after December 31, 2001.
1.2 Supersession of inconsistent provisions. This amendment shall supersede the
provisions of the Plan to the extent those provisions are inconsistent with the provisions of this
amendment.
ARTICLE II
INCREASE IN COMPENSATION LIMIT
2.1 Increase in limit. The annual Compensation of each Participant taken into account in
determining benefit accruals in any Plan Year beginning after December 31, 2001, shall not
exceed $200,000. Annual Compensation means Compensation during the Plan Year or such
other consecutive 12-month period over which Compensation is otherwise determined under the
Plan (the determination period).
2.2 Cost-of-living adjustment. The $200,000 limit on annual Compensation in Section 2.1
above shall be adjusted for cost-of-living increases in accordance with Code Section
401(a)(1 7)(B). The cost-of-living adjustment in effect for a calendar year applies to annual
Compensation for the determination period that begins with or within such calendar year.
ARTICLE III
MODIFICATION OF TOP-HEAVY RULES
3.1 Effective date. This Article shall apply for purposes of determining whether the Plan is a
Top Heavy plan under Code Section 416(g) for Plan Years beginning after December 31, 2001,
and whether the Plan satisfies the minimum benefits requirements of Code Section 416(c) for
such years. This Article amends Article XI of the Plan.
3.2 Determination of top-heavy status.
(a) Key Employee. Key Employee means any Employee or former Employee
(including any deceased Employee) who at any time during the Plan Year that includes
the determination date was an officer of the Employer having annual Compensation
greater than $130,000 (as adjusted under Code Section 416(i)(1) for Plan Years
1
beginning after December 31, 2002), a 5-percent owner of the Employer, or a 1-percent
owner of the Employer having annual Compensation of more than $150,000. For this
purpose, annual Compensation means compensation within the meaning of Code
Section 415(c)(3). The determination of who is a Key Employee will be made in
accordance with Code Section 416(i)(1) and the applicable regulations and other
guidance of general applicability issued thereunder.
(b) Determination of present values and amounts. This section (b) shall
apply for purposes of determining the present values of accrued benefits and the
amounts of account balances of Employees as of the determination date.
(1) Distributions during year ending on the determination date. The present
values of accrued benefits and the amounts of account balances of an Employee
as of the determination date shall be increased by the distributions made with
respect to the Employee under the Plan and any plan aggregated with the Plan
under Code Section 416(g)(2) during the 1-year period ending on the
determination date. The preceding sentence shall also apply to distributions
under a terminated plan which, had it not been terminated, would have been
aggregated with the Plan under Code Section 416(g)(2)(A)(i). In the case of a
distribution made for a reason other than separation from service, death, or
disability, this provision shall be applied by substituting "5-year period" for "1-year
period."
(2) Employees not performing services during year ending on the
determination date. The accrued benefits and accounts of any individual who
has not performed services for the Employer during the 1-year period ending on
the determination date shall not be taken into account.
3.3 Minimum benefits. For purposes of satisfying the minimum benefit requirements of
Code Section 416(c)(1) and the Plan, in determining years of service with the Employer, any
service with the Employer shall be disregarded to the extent that such service occurs during a
Plan Year when the Plan benefits (within the meaning of Code Section 410(b)) no Key
Employee or former Key Employee.
ARTICLE IV
DIRECT ROLLOVERS OF PLAN DISTRIBUTIONS
4.1 Effective date. This Article shall apply to distributions made after December 31, 2001.
4.2 Modification of definition of eligible retirement plan. For purposes of the direct rollover
provisions in Section 7.12 p.49 of the Plan, an eligible retirement plan shall also mean an
annuity contract described in Code Section 403(b) and an eligible plan under Code
Section 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 definition of eligible
retirement plan shall also apply in the case of a distribution to a surviving spouse, or to a spouse
or former spouse who is the alternate payee under a qualified domestic relation order, as
defined in Code Section 414(p).
2
ARTICLE V
ROLLOVERS FROM OTHER PLANS
The Administrator, operationally and on a nondiscriminatory basis, may limit the source
of rollover contributions that may be accepted by this Plan.
ARTICLE VI
MODEL AMENDMENT UNDER REVENUE RULING 2001-62
APPLICABLE MORTALITY TABLE
6.1 Effective date. This Article shall apply to distributions with Annuity Starting Dates on or
after January 1, 2002.
6.2 Notwithstanding any other Plan provisions to the contrary, the Applicable Mortality Table
used for purposes of adjusting any benefit or limitation under Code Section 415(b)(2)(B), (C), or
(D) as set forth in Section 6.3 p.40 of the Plan and the Applicable Mortality Table used for
purposes of satisfying the requirements of Code Section 417(e) as set forth in Section 1.3 p.2 is
the table prescribed in Rev. Rui. 2001-62.
6.3 For any distribution with an Annuity Starting Date on or after the effective date of this
Article and before the adoption date of this Article, if application of the amendment as of the
Annuity Starting Date would have caused a reduction in the amount of any distribution, such
reduction is not reflected in any payments made before the adoption date of this Article.
However, the amount of any such reduction that is required under Code Section 415(b)(2)(B)
must be reflected actuarially over any remaining payments to the Participant.
3
. ................... .. ..
IN WITNESS WHEREOF, this Amendment has been executed this day
of
Truckee Donner Public Utility District
By
EMPLOYER
Title
Joseph R. Aguera, J. Ronald Hemig, James
A. Maass, Patricia S. Sutton and Nelson
Van Gundy
By
TRUSTEE
TRUSTEE
TRUSTEE
TRUSTEE
TRUSTEE
4
TABLE OF CONTENTS
INTRODUCTION TO YOUR PLAN
ARTICLE I
PARTICIPATION IN THE PLAN
Am I eligible to participate in the Plan? ......................................................................
When am I eligible to participate in the Plan?....................................................................._1
Whenis my Entry Date?...__....... ..........-........................_........ .................................2
Does all my service with the Employer count for purposes of Plan eligibility?.............................2
What happens if I'm a participant,terminate employment and then I'm rehired?.................
ARTICLE II
DETERMINATION OF BENEFITS
What kind of Plan is this?_........_....._......... 3
What is my Normal Retirement Benefit?....... ........ 3
TRUCKEE DONNER PUBLIC UTILITY DISTRICT DEFINED BENEFIT PLAN HOW much wilt I be paid when I retire?......... ......._...... ..................._4
What compensation is used to calamine my Plan benefits? .........................................5
SUMMARY PLAN DESCRIPTION How is my Average Monthly Compensation determined?........ ......................... ..........5
May I roll over payments from other retirement plans or IRAs?.__........_.................................5
ARTICLE III
RETIREMENT BENEFITS
What benefits will I receive at normal retirement?.......-....._ ........
What benefits will I receive at early retirement?......._............. .............................. .......6
What benefits will I receive at late retirement? 6
What happens if I leave the Employer's workforce before I retire?............... 7
What is my vested interest in my Accrued Benefit?.........._....__._...__..... ..........................
How do I determine my Years of Service for vesting purposes?........... ........ ......____ _7
Does all my service count for vesting purposes?....._ ....... ........... 8
As a veteran,will my military service count as service with the Employer?........_......._...... 8
What happens to my non-vested benefits if I'm rehired?.............................................................8
What happens to forfeitures?....._ ................................................. 8
ARTICLE IV
DISABILITY BENEFITS
Him is disability defined?_........-....,.... ........... .......... .......... 9
What happens if I become disabled?_............ ......... ..............
ARTICLE V
Are there any exceptions to the general rule?.. ......... .......... 7 FORM OF BENEFIT PAYMENT
Can the Plan be amended?..................................
How will my benefits be paid?_.............._................ 9 ...................
May I elect another form of benefit?............................... What happens if the Plan is terminated?...__....................... ...................... 18
10 Are my benefits guaranteed?......_..........................................
May I delay the receipt of benefits?......._..........._......._........... ....18
'11 How do I submit a claim for Plan benefits?..............................................................._........18
ARTICLE VI I, What if my benefits are denied?.... ............................... ............__.................... ..... 19
DEATH BENEFITS What is the Claims Review Procedure?........ ........._..................20
What happens if I die while working for the Employer?..__....._...__..._.............................. What are my rights as a Plan participant?_...
.......................__...........22
Who is the beneficiary of my death benefit?.............-........................................ What can I do if I have questions or my rights are violated?...-
................ ...23
How will the death benefit be paid to my beneficiary? .........-............12
When must the last payment be made to my beneficiary?........................................................13 ARTICLE X11
GENERAL INFORMATION ABOUT THE PLAN
What happens if I'm a participant,terminate employment and the before receiving all
General Plan Information......_..._.
mybenefits?................................................. . ...............................23
13 Employer Information.. ........-................................................. ............................. ........24
ARTICLE Vil Administrator Information._._...._........_.._.......__........._.......
. .......___....................24
IN-SERVICE DISTRIBUTIONS Trustee Information....._...__ ........................................ . .......................24
Service of Legal Process.._..........._....
Can I withdraw money from my account while working? .................... 14 ................ ..........25
Do I have to waive any benefits in order to receive an in-service distribution?._,.........._ 14
ARTICLE Vill
TAX TREATMENT OF DISTRIBUTIONS
What are my tax consequences when I receive a distribution from the Plan?......._......_..........14
Can I reduce or defer tax on my distribution?...
..........14
ARTICLE IX
HOURS OF SERVICE
What is an Hour of Service?................. ...................................... ...........................15
How are Hours of Service credited?......._ ...................
ARTICLE X
LOANS
May I borrow money from the Plan?-........................_.................... 15
What are the loan rules and requirements?...........................................
ARTICLE XI
PROTECTED BENEFITS AND CLAIMS PROCEDURES
Is my benefit protecteri....... ............................... ....................................... 17
TRUCKEE DONNER PUBLIC UTILITY DISTRICT DEFINED BENEFIT PLAN
consecutive months of employment,you will have Completed a Year of Service at the end of any
SUMMARY PLAN DESCRIPTION following Plan Year during which you were credited with at least 1000 Hours of Service,
INTRODUCTION TO YOUR PLAN For purposes of determining whether you have completed a Year of Service where the
computation period is based upon a short Plan Year,your Administrator will notify you of the
'Plan')has been adopted to number of the Hours of Service that are required and the method of calculating a Year of
Truckee Dormer Public Utility District Defined Benefit Plan
Service-
provide you with additional income for retirement,This Summary Plan Description('SPD')
contains valuable information regarding when you may become eligible to participate under the You should review the Article in this SPD entitled"HOURS OF SERVICE"for an
Plan,your Plan benefits,your distribution options,and many other features of the Plan.You
explanation of an Hour of Service.
should take the time to read this SPD to get a better understanding of your rights and
obligations under the Plan.
When Is my Entry Date?
We have attempted to answer most of the questions YOU May have regarding your You may begin participating under the Plan once you have satisfied the eligibility
benefits in the Plan.If this SPD does not answer all of your questions,please contact the requirements The Administrator may request that you Complete contain paperwork related to
Administrator.The name and address of the Administrator can be found in the Article of this I
SPD entitled'General Information About The Plan." i your Plan participation.In addition,special rules may apply if you terminate em
ployment and are
then rehired.If you have questions about the timing of your Plan participation,please Contact
This SPD describes the Plan's benefits and obligations as contained in the legal Plan the Administrator,
document,which governs the operation of the Plan.The Plan document is written in much more
technical and precise language.If the non-technical language under this SPD and the technical, Your Entry Date will be the day you meet the eligibility requirements,
legal language of the Plan document conflict,the Plan document always governs.If you wish to Does all my service with the Employer count for purposes of Plan eligibility?
receive a copy of the legal Plan document,please contact the Administrator.
This SPD describes the current provisions of the Plan,as designed to comply with In determining whether you satisfy the minimum service conditions required to
applicable legal requirements.The Plan is Subject to federal laws,such as ERISA the participate under the Plan,all service you perform for us will generally be counted.However,
Employee Retirement Income Security Act),the Internal Revenue Code and other federal and
there are some exceptions to this general rule.
state laws which may affect your rights.The provisions of the Plan are subject to revision due to Break in Service rules,If you terminate employment and are rehired,you may"lose"
a change in laws or due to pronouncements by the Internal Revenue Service(IRS)or credit for prior service under the Plan's Break in Service rules.While these eligibility Break in
Department of Labor(DOL).We may also amend or terminate this Plan.If the provisions of the
Plan that are described in this SPD change,we will notify you. Service rules may delay you from participating in the Plan,they will never cause you to lose any
benefits to which you have already become entitled to.
ARTICLE I
PARTICIPATION IN THE PLAN For eligibility purposes,you will have a Break in Service if you complete less than 501
Hours of Service during the computation period used to determine whether you have a Year of
Am I eligible to participate in the Plan? Service.However,if you are absent from work for certain leaves of absence such as maternity
or paternity leave,you may be credited with 501 Hours of Service to prevent a Break in Service.
You are eligible to participate in the Plan once you satisfy the Plan's eligibility conditions Five-year Break in Service rule,The five-year Break in Service rule applies on y to y
described in the next question. I to to 11
nonvestecl(0%vested)participants.If you are totally norivested in your benefits resulting from
When am I eligible to participate in the Plan? our contributions and you have five consecutive Breaks in Service(as defined above),all the
service you earned before the 5-year period no longer counts for eligibility purposes.Thus,if
you return to employment after incurring five consecutive Breaks in Service,you would have to
You will be eligible to participate in the Plan once you satisfy the requirements below. resatisfy any minimum service requirements under the Plan.However,if you have benefits
However,you will actually enter the Plan once you reach the Entry Date as described in the under the Plan resulting from Our contributions which are vested,you do not lose any rights to
next question. those benefits under these rules.
You will be eligible to participate in the Plan if you have completed one(1)Year of
Service. If you are a veteran and are reemployed under the Uniformed Services Employment and
Reemployment Rights Act of 1994,your qualified military service may be considered service
You will have completed a Year of Service if,at the end of your first twelve consecutive with us.If you may be affected by this law,ask your Administrator for further details.
you have not been credited with at least 1000 Hours of Service by the end of your
Service.If
months Of employment with us,you have been credited with at least 1000 Hours a Olive
r first twelve i
2
What happens if I'm a participant,terminate employment and then I'm rehired? Your Accrued Benefit is that portion of your"Normal Retirement Benefit"you have
y earned as of a particular date.It equals your"Normal Retirement Benefit"multiplied by your
If you are no longer a participant because you terminated employment,add are rehired accrual fraction.
you will continue to participate in the Plan in the same manner as if your termination had not Your accrual fraction(which may not be greater than one(1))equals your Years of
occurred but only if your service prior to your reemployment has not been lost under the Plan's
eligibility Break in Service rules. Service completed as of the date of computation divided by your Years of Service you would
have if you remain employed until your Normal Retirement Age.You will earn a Year of Service
if you are not eligible to participate because your service with us has been lost under the for each Plan Year,including years prior to the Effective Date of the Plan,during which youcompleted 1000 Hours of Service.
eligibility Break in Service rules,then you will again be required to meet the eligibility
requirements to become a participant. In addition to the calculations set forth above,your Accrued Benefit will be subject to the
following rules and limitations:
ARTICLE If
DETERMINATION OF BENEFITS (a) If you are still employed after reaching your Normal Retirement Age,you will
What kind of Plan is this? continue to accrue benefits based upon your service and Average Monthly
Compensation determined at the close of any Plan Year coinciding with or following your
This Plan is a type of qualified retirement plan commonly referred to as a Defined Benefit Normal Retirement Age.
Pension Plan(DBP).The DBP will provide you with a retirement benefit for life unless you,and your spouse if you are married elect otherwise.The amount of your retirement payments are O If you become a participant again following a severance of employment with us
and a distribution of your vested Accrued Benefit has been made,you may restore your
based upon your"Normal Retirement Benefit"explained in the next question. Accrued Benefit provided you repay such distribution with interest prior to the earlier of
five(5)years after your date of reemployment or the close of your first period of five(5)
Each year we are required to contribute an amount to the Plan which is actuarially consecutive 1-Year Breaks in Service commencing after the distribution.Otherwise,your
determined.The amount of the contribution may vary from year to year,depending on,for Accruetl Benefit will be reduced by the actuarial equivalent of your Accrued Benefit
example,participant turnover,benefit payments,and investment gains or losses of the trust distributed to you.Your Administrator will advise you of the amount to be repaid
fund.The law requires that an independent professional,called an"enrolled actuary,"certify that including interest,
we are meeting minimum funding requirements.If we fail to meet minimum funding
requirements,we can be subject to penalties (c) When the Plan Year is a short year,the number of the Hours of Service required
will be proportionately reduced based on the number of full months in the short Plan
What is my"Norma[Retirement Benefit"? Year.
At your Normal Retirement Date,you will be entitled to a monthly benefit which is called (d) Your Accrued Benefit will not be less than the minimum Accrued Benefit,if any,
your"Normal Retirement Benefit"The amount you actually receive at your Normal Retirement provided in the Article of this SPD entitled"YOUR PLAN'S TOP HEAVY RULES."
Date is your Accrued Benefit which is explained in the question"How much will I be paid when
retire?"found in this Article. For benefit accrual purposes,you will have a Break in Service if you Complete less than
501 Hours of Service during a Plan Year.However,if you are absent from work for certain
Your"Normal Retirement Benefit"will be determined based on a retirement benefit leaves of absence such as maternity or paternity leave,you may be credited with 501 Hours of
formula equal to 40%of your Average Monthly Compensation,plus''/:of 1%of your Average Service to prevent a Break in Service.
Monthly Compensation for each year in excess of 20 years at Normal Retirement Date,
computed to the nearest cent.However,ff your projected Years of Service as of the end of the
Plan Year in which you attain your Normal Retirement Age are less than 20 at age 65,the What compensation is used to determine m Plan benefits?
percentage of your Average Monthly Compensation will be reduced by one-twentieth for each y
Year of Service less than 20 at age 65,For purposes of calculating your retirement benefit For the purposes of the Plan,compensation has a special meaning.Compensation is
under this formula,Year of Service means a Plan Year,including periods prior to the Effective defined as your total compensation that is subject to income tax,that is,all of your
Date of the Plan,during which you complete 1000 Hours of Service. compensation paid to you by us during a Calendar Year ending with or within the Plan Year,but
How much will I be paid when i retire? including your salary reduction contributions to any plan or arrangement maintained
At your Normal Retirement Date,you will be entitled to your"Normal Retirement by your Employer.
Benefit"However,the amount you actually receive each month is the amount of your"Normal How is my Average Monthly Compensation determined?
Retirement Benefit"you have earned(or accrued)while employed with us.This amount Is your
Accrued Benefit. Your"Normal Retirement Benefit"is based on average monthly compensation,
3 4
"Average Monthly Compensation"means your compensation converted to a monthly If you retire on or after your Early Retirement Date,you will be entitled to receive your
amount and then averaged over the 3 consecutive Calendar Years from your late of Accrued Benefit which will be paid at your Normal Retirement Date,unless you elect to receive
employment to your date of termination,including periods prior to the Effective Date of the Plan, it earlier.
which produce the highest monthly average.If you have less than 3 consecutive Calendar
Years of service from your date of employment to your date of termination,your Average If you elect to receive your Accrued Benefit prior to your Normal Retirement Date,you
Monthly Compensation will be based on your monthly compensation from your late of will receive an Accrued Benefit equal to the greater of your Accrued Benefit at your Normal
employment to your date of termination. Retirement Date reduced by 1/15th for each of the first five(5)years and then 1f30th for each of
the next five(5)years and reduced actuarially for each additional year thereafter that the
May I"roll over"payments from other retirement plans or IRAs? I commencement of your Early Retirement Benefit precedes your Normal Retirement Date,OR
the actuarial equivalent of your Accrued Benefit payable at your Normal Retirement Date if such
At the discretion of the an dAdmistributions
if you are r Eligible Employee,you may be benefit is distributed in a form other than a nondecreasing life annuity payable for a perfect not
permitted to deposit into the Plan distributions you have received from other plans and certain less than your life expectancy.
IRAs.Such a deposit is called a"rollover"and may result in tax savings to you.You may ask
your prior plan administrator or trustee to directly transfer(a"direct rollover")to this Plan all or a What benefits will I receive at late retirement?
portion of any amount which you are entitled to receive as a distribution from a prior plan.
Alternatively,if you received a distribution from a prior plan,you may elect to deposit any You may remain employed past your Plan's Normal Retirement Date and retire instead
amount eligible for rollover within 60 days of your receipt of the distribution.You should consult on your Late Retirement Date.Your Late Retirement Date is the date you choose to retire after
qualified counsel to determine if a transfer or rollover is in your best interest. first reaching your Normal Retirement Date.Payment of your benefits will begin as soon as
administratively feasible following your actual Retirement Date,although you have the option to
Your rollover will be placed in a separate account called a"participant's Vansfer/rollover begin receiving your accrued retirement even though you remain employed with us past your
account."You will always be 100%vested(your ownership rights)in"rollovers"and"direct Normal Retirement Date.
rollovers."This means that you will always be entitled to all of your transfer or rollover
contributions.Rollover contributions will be affected by any investment gains or losses. The benefit you will receive at your Late Retirement Date will be equal to the benefits
you have earned or"accrued"through your Normal Retirement Date,plus additional benefits
You may withdraw the amounts in your"participant's transtenrollovereccount"at any time. you have accruetl for service after your Normal Retirement Date.
ARTICLE ill What happens if I leave the Employer's workforce before I retire?
RETIREMENT BENEFITS The Plan is designed to encourage you to slay with us until retirement.Payment of your
Accrued Benefit under the Plan is available upon your death,disability or retirement.
What benefits will I receive at normal retirement?
If your employment terminates for reasons other than those fisted above,you will be
Youwill be entitled to all your benefits under the Plan when you reach your Normal entitled to receive only your vested percentage(your ownership rights)of your Accrued Benefit.
Retirementt Age.Payment of your benefits,whether you terminate employment with us or not,
will begin as soon as administratively feasible following your Normal Retirement Date. You may elect to have the present value of your vested benefit distributed to you as
soon as administratively feasible following your termination of employment.However,if the
Your Normal Retirement Date is your Normal Retirement Age. present value of your vested benefit is less than a certain dollar threshold,a distribution will be
made to you within a reasonable time after you terminate employment.(See the question"How
You will attain your Normal Retirement Age when you reach your 65th birthday. will my benefits be paitl?"found in the Article of this SPD entitled"FORM OF BENEFIT
PAYMENT"for an explanation of the dollar threshold.)
What benefits will I receive at early retirement? j
You will be entitled to all your benefits under the Plan when you reach your Early What is my vested interest in my Accrued Benefit?
Retirement Date.Payment of your early retirement benefits will,at your election,begin as soon Your vested percentage in your Accrued Benefit is determined under the following
as administratively feasible following your Early Retirement Date if you choose to retire on such date. schedule and is based on vesting Years of Service.You will always,however,be 100%vested
upon your Early or Normal Retirement Age,
Your Early Retirement Date is the first day of the month following the late you have
attained age 55 and completed Ten Years of Service with us.You will have completed a Year of
Service if you are credited with 1000 Hours of Service during a Plan Year,even if you were not -
employed on the first or last day of the Plan Year.You may elect to retire when you reach your
Early Retirement Date.
5 6
Vesting Schedule
Years of Service Percentage What happens to my non-vested benefit,If I'm rehired?
1 10%
2 20%
If you were not vested of you were Only partially vested in your Accrued Benefit when
3 30% you left,then the non-vested portion of your Accrued Benefit will be forfeited if you do not return
4 40% to service with us before having 5 consecutive 1-Year Breaks in Service,
5 60%
6 80% If you become a participant again following a severance of employment with us and a
7 100%
distribution of your vested Accrued Benefit has been made,you may restore your Accrued
Benefit provided you repay such distribution with interest prior to the earlier of five(5)years
under the Plan
Your vested percentage will not be less than your vested percentage
after your date of reemployment or the close of your first period of five(5)consecutive 1-Year before this amendment and restatement.
Breaks in Service commencing after the distribution.Otherwise,your Accrued Benefit will be
reduced by the actuarial equivalent at your Accrued Benefit distributed to you.Your
Your vested benefit will normally be distributed to YOU OF your beneficiary upon your Administrator will advise you of the amount to be repaid,including interest.
death,disability or retirement.
How do I determine my Years of Service for vesting purposes? What happens to forfeitures?
The non-vested portion of a terminated participants Accrued Benefit remains in the Plan
To earn a Year of Service,you must be credited with at least 1000 Hours of Service i
during any Plan Year.(See the Article in this SPD entitled-HOURS OF SERVICE-for an and is called a forfeiture.Forfeitures will be used to reduce our contributions to the Plan,but
only after the Accrued Benefit becomes a forfeiture,(See the preceding question for an
explanation of Hour of Service).The Plan contains specific rules for crediting Hours of Service explanation of forfeitures and when they Occur.)
for vesting purposes,The Administrator will track your service and will credit you with a Year of
Service for each Plan Year in which you are credited with the required Hours of Service,in
ARTICLE IV
accordance with the terms of the Plan.If you have any questions regarding your vesting service, DISABILITY BENEFITS
you should contact the Administrator. i
Ds all My service count for vesting purposes? How Is disability defined?
Does
In calculating your vested percentage,all service you Perform for us will generally be Under the Plan,disability is defined as a physical or mental condition resulting from
bodily injury,disease,or mental disorder which renders you incapable of continuing your us
ual counted.However,there are some exceptions to this general rule.
and customary employment with us.Your disability will be determined by a licensed physician
Break in Service rules,If you terminate employment and are rehired,you may"lose" chosen by the Administrator.
credit for prior service under the Plan's Break in Service rules.
What happens if I become disabled?
For vesting purposes,you will have a Break in Service if you complete less than 501
Hours of Service during the computation period used to determine whether you have a Year of If you become disabled while a participant and your condition continues for a period of
Service.However,if you are absent from work for certain leaves of absence such as maternity six months,you will receive a disability benefit equal to an actuarial equivalent of your Accrued
Benefit payable at your Normal Retirement Date.
or paternity leave,you may be credited with 501 Hours of Service to prevent a Break in Service.
If you become disabled while a participant,you will be entitled to 100%at your Accrued
Five-year Break in Service rule.The five-year Break in Service rule applies only to totally Benefit.Payment of your disability benefits will be made to you as if you had retired.However,if
nonvested(10%vested)participants.If YOU are totally nonvested in your benefits resulting from the value of your vested benefit is less than a certain dollar threshold,a distribution will be made
our contributions and you have five consecutive Breaks in Service(as defined above),all the
to you within a reasonable time after you terminate employment,(See the next question"How
service you earned before the 5-year period no longer counts for vesting purposes.Thus,if you
Service,you will will my benefits be paid?"for an explanation of the dollar threshold.)
return to employment after incurring five consecutive Breaks in Se be treated as a
new employee(with no prior service)for purposes of determining your vested percentage under
the Plan.However,if you have benefits under the Plan resulting from our contributions which ARTICLE V
FORM OF BENEFIT PAYMENT
are vested,you do not lose any rights to those benefits under these rules.
As a veteran,will my military service count as service with the Employer? How will my benefits be paid?
There are various methods by which benefits may be distributed to you from the Plan.
If you are a veteran and are reemployed under the Uniformed Services Employment and The method depends on your marital status,as well as the elections you and your spouse
Reemployment Rights Act of 1994,your qualified military service may be considered service
make.Alt methods of distribution,however,have equivalent values.The rules under this Article
with us.If you may be affected by this law,ask your Administrator for further details.
6
apply to all distributions you will receive from the Plan,whether by reason of retirement, a reduced monthly pension payable over your life with a guarantee that you and your
termination,or any other event which may result in a distribution of benefits, designated beneficiary together will receive a total of at least 180 monthly payments,
If you are married on the date your benefits are to begin,you will automatically receive a a reduced monthly pension payable over your life with a guarantee that you and your
joint and 50%survivor annuity,unless you otherwise elect.This means that you will receive designated beneficiary together will receive a total of at least 240 monthly payments.
payments for your life,and upon your death,your spouse will receive a monthly benefit for life
equal to 50%of the monthly benefit you were receiving at the time of your death.it should be a reduced month)noted that a joint and survivor annuity may provide a tower monthly benefit than other forms of y pension payable over your life and upon your death,a monthly
payment.You should find out the differences before making such election. amount equal to 50%of the amount payable during your life will be paid to your
designated beneficiary(50%joint and survivor annuity).
If you are not married on the date your benefits are to begin,you will automatically monthly receive a life annuity,which means you will receive payments for as long as you live. a reduced mon y pension payable over your life and upon your death,a monthly
amount squat to 66 2/3%of the amount payable during your life will be paid to your
However,regardless of the preceding,if your vested benefit under the Plan does not designated beneficiary(66 2/3%joint and survivor annuity).
exceed$5,000,then the Administrator will direct the Trustee to distribute your benefit to you in a
single lump-sum payment as soon as possible following the event that entitles you to a • a reduced monthly pension payable over your life and upon your death,a monthly
tlistribution, amount equal to 75%of the amount payable during your life will be paid to your
designated beneficiary(75%joint and survivor annuity).
If your vested benefit under the Plan exceeds$5,000,then you(and your spouse,if you
are married)must consent to the tlistribution before it may be made.Also,if you want the • a reduced monthly pension payable over your life and upon your death,a monthly
distribution to be in a form other than an annuity payment,you(and your spouse,if you are amount equal to 100%of the amount payable during your life will be paid to your
married)must first waive the annuity form of payment, designated beneficiary(100%joint and survivor annuity).
May I elect another form of benefit? May I delay the receipt of benefits?
When you are about to receive any distribution,the Administrator will explain the joint Yes,you may delay the receipt of benefits unless a distribution is required to be made,
and survivor annuity or the life annuity to you in greater detail.You will be given the option of as explained earlier,because your vested benefit under the Plan does not exceed$5,000.
waiving the joint and survivor annuity or the life annuity form of payment during the 90 day However,in addition to the benefit payment mentioned above,there are rules which require that
period before the annuity is to begin.IF YOU ARE MARRIED,YOUR SPOUSE MUST certain minimum distributions be made from the Plan_Generally,these minimum distributions
IRREVOCABLY CONSENT IN WRITING TO THE WAIVER IN THE PRESENCE OF A must begin not later than the April 1 at following the year in which you reach age 70 112,
NOTARY OR A PLAN REPRESENTATIVE.You may revoke any waiver.The Administrator will However,if you are not a 5%owner and reach the age of 70 1/2 after the later of 1998 or the
provide you with forms to make these elections.Since your spouse participates in these date we adopt an amendment to the Plan to eliminate the age 70 1/2 required distribution,these
elections,you must immediately inform the Administrator of any change in your marital status. required distributions must begin not later than the later of the April 1st following the end of the
j year in which you reach age 70 1/2 or retire.You should see the Administrator If you feet you
If you and your spouse elect not to take a joint and survivor annuity,or if you are not may be affected by these rules.
married when your benefits are scheduled to begin and have elected not to take a life annuity,
you may area to receive your benefits in an alternative form of payment.This payment may be ARTICLE VI
made in one of the following methods: DEATH BENEFITS
• a single lump-sum payment in cash. What happens if I the while working for the Employer?
installments over a period of not more than our a If you die while working for us, our beneficiary will receiv• y assumed life expectancy(or your Y ry e a death benefit equal to the
and your beneficiary's assumed life expectancies). actuarial equivalent of your Accrued Benefit.
• a monthly pension payable over your life. �i Who is the beneficiary of my death benefit?
• a reduced monthly pension payable over your life with a If you are married at the time of your death,your spouse will be the beneficiary of the
guarantee that you and your death benefit,unless an election is made to change the beneficiary.IF YOU WISH TO
designated beneficiary together will receive a total of at least 60 monthly payments. DESIGNATE A BENEFICIARY OTHER THAN YOUR SPOUSE,HOWEVER,YOUR SPOUSE
• a reduced monthly pension payable over your life with a guarantee that you and your MUST IRREVOCABLY CONSENT TO WAIVE ANY RIGHT TO THE DEATH BENEFIT.YOUR
SPOUSE'S CONSENT MUST BE IN WRITING,BE WITNESSED BY A NOTARY OR A PLAN
designated beneficiary together will receive a total of at least 120 monthly payments. REPRESENTATIVE AND ACKNOWLEDGE THE SPECIFIC NONSPOUSE BENEFICIARY,
9
10
If you are married and you change your designation,your spouse must again consent to a reduced monthly pension payable over your designated beneficiary's life with a
the change, guarantee that your designated beneficiary and his or her beneficiary together will
If you are not married the
the time of your death,you may designate the beneficiary on a receive a total of at least 120 monthly payments.
form to be supplied to you by the Administrator a reduced monthly
pension payable over your designated beneficiary's Life with a
How will the death benefit be paid to my beneficiary? guarantee that your designated beneficiary and his or her beneficiary together will
receive a total of at least 180 monthly payments.
The death benefit payable to your spouse will be in the form of an annuity,that is,
Periodic payments over the life of your spouse. a reduced monthly pension payable over your designated beneficiary's life with a
guarantee that your designated beneficiary and his or her beneficiary together will
You may waive this form of distribution.Generally,the period during which you and your receive a total of at least 240 monthly payments,
spouse may waive this survivor annuity begins as of the first day of the Plan Year in which you h)d reduced monthly en
reach age 35 and ends when you die.The Administrator must provide you with a detailed a red y p sion payable over your designated beneficiary's life and upon
explanation of the annuity.This explanation must be given to you during the period of time his or tier death,a monthly amount equal to 50%of the amount payable during your
beginning on the first day of the Plan Year in which you will reach age 32 and ending on the first designated beneficiary's life will be paid to his or her beneficiary joint and 50%survivor
day of the Plan Year in which you reach age 35. annuity).
It is,therefore,important that you inform the Administrator when you reach age 32 so a reduced monthly pension payable over your designated beneficiary's life and upon
that you may receive this information. his or her death,a monthly amount equal to 66 2(3%of the amount payable during your
designated beneficiary's life will be paid to his or her beneficiary joint and 66 2/3%
Under a special rule,you and your spouse may waive the survivor annuity form of survivor annuity).
payment any time before you turn age 35.However,any waiver will become invalid at the
beginning of the Plan Year in which you turn age 35,and you and your spouse will be required a reduced monthly pension payable over your designated beneficiary's life and upon
to make another waiver. his or her death,a monthly amount equal to 75%of the amount payable during your
designated beneficiary's life will be paid to his or her beneficiary joint and 75%survivor
If no valid waiver is in effect,the death benefit payable to your spouse will be in the form annuity),
of a survivor annuity,that is,periodic payments over the life of your spouse.Your spouse may
You death
installments,provided your spouse consents in writing to this alternative form. a reduced monthly pension payable over your designated beneficiary's life and upon
direct that payments begin within a reasonable period of time after your death.Y
benefit may be distributed in an alternative method,such as a single lump sum or in his or her death,a monthly amount equal to 100%of the amount payable during your
designated beneficiary's life will be paid to his or her beneficiary joint and 100%survivor
annuity).
If your spouse has validly waived any right to the death benefit in the manner outlined
above,your spouse cannot be located,or you are not married at the time of your death,then When must the last payment be made to my beneficiary?
your death benefit will be paid to the beneficiary of your own choosing in an alternative method
such as a single lump sum or in installments.You may designate the beneficiary on a form to be Regardless of the method of distribution selected,your entire death benefit must be paid
supplied to you by the Administrator. to your beneficiaries within five years after your death.However,9 your spouse is your
designated beneficiary,then payment of your death benefit may be delayed until the year in
The payment of your death benefit may be paid in one of the following alternative forms: which you would have attained age 70 112.Minimum distributions must then be made over a
period which does not exceed your spouse's life expectancy.
• a single lump-sum payment in cash.
Since your spouse has certain rights in the death benefit,you should immediately report
• equal monthly,quarterly,semi-annual,or annual cash installments over a period to any change in your marital status to the Administrator.
be determined by you or your beneficiary.
What happens if I'm a participant,terminate employment and die before receiving all
• a monthly pension payable over your beneficiarys life(straight life annuity). my benefits?
• a reduced monthly pension payable over your designated beneficiary's life with a If you terminate employment with us and subsequently die,your designated beneficiary
guarantee that your designated beneficiary and his or her beneficiary together will will be entitled to the vested percentage of your remaining Accrued Benefit at the time of your
receive a total of at least 60 monthly payments, death.However,if you are receiving an annuity at the time of your death,your designated
beneficiary,if any,will be entitled to any remaining payments according to the annuity contract.
12
ARTICLE Vil another form of benefit?"found in the Article of this SPD entitled"FORM OF BENEFIT
IN-SERVICE DISTRIBUTIONS PAYMENT"for an explanation of how to waive the annuity form of payment.)
Can I withdraw money from my account while working? WHENEVER YOU RECEIVE A DISTRIBUTION,THE ADMINISTRATOR WILL
DELIVER TO YOU A MORE DETAILED EXPLANATION OF THESE OPTIONS,HOWEVER,
You are entitled to receive a pre-retirement distribution of your"participant's THE RULES WHICH DETERMINE WHETHER YOU QUALIFY FOR FAVORABLE TAX
transfer/rollover account'at any time.This distribution is made at your election. TREATMENT ARE VERY COMPLEX.YOU SHOULD CONSULT WITH QUALIFIED TAX
Do I have to waive an benefits in order to receive an in- COUNSEL BEFORE MAKING A CHOICE.
Y service distribution?
If you wish to receive an in- ARTICLE IX
Y service distribution from your"participant's transfer/rollover waive the HOURS OF SERVICE
account"in a single payment,you(and your spouse,if you are married)must first waive the
annuity form of payment.(See the question"How will my benefits be paid?"found in the Article What is an Hour of Service?
of this SPD entitled"FORM OF BENEFIT PAYMENT"for an explanation of how to waive the
annuity form of payment.) You will be credited with an Hour of Service for:
ARTICLE Vili (a) each hour for which you are directly or indirectly compensated by us for the
TAX TREATMENT OF DISTRIBUTIONS performance of duties during the Plan Year;
What are my tax consequences when 1 receive a distribution from the Plan? (b) each hour for which you are directly or indirectly compensated by us for reasons
Generally,you must include any Plan distribution in your taxable income other than performance of duties(such as vacation,holidays,sickness,disability,lay-off,
which you receive the distribution.The tax treatment may also depend on your age
e when you the year in military duty,jury duty or leave of absence during the Plan Year);and
receive the distribution.
(c) each hour for back pay awarded or agreed to by us.
Can I reduce or defer tax on my distribution? You will not be credited for the same Hours of Service both under(a)or(b),as the case
You may reduce,or defer entirely,the tax due on your distribution through use of one of may be,and under(c).
the following methods:
How are Hours of Service credited?
(a) The rollover of all or a portion of the distribution to a traditional Individual- You will be credited with your actual Hours of Service.
Retirement Account(IRA)or another qualified employer plan.This will result in no tax
being due until you begin withdrawing funds from the traditional IRA or other qualified ARTICLE X
employer plan.The rollover of the distribution,however,MUST be made within strict LOANS
time frames(normally,within 60 days after you receive your distribution).Under certain
circumstances all or a portion of a distribution may not qualify for this rollover treatment. May I borrow money from the Plan?
In addition,most distributions will be subject to mandatory federal income tax I
withholding at a rate of 20,This will reduce the amount you actually receive.For this Yes.You may request a participant loan for the purpose of satisfying reason,if you wish to roll over all or a portion of your distribution amount,the direct ' y g your obligation to
transfer option described in paragraph(b)below would be the better choice. an alternate payee under a Qualified Domestic Relations Order.Application forms are provided
by the Administrator.Your ability to obtain a participant loan depends on several factors.The
Administrator will determine whether you satisfy these factors.
(b) For most distributions,you may request that a direct transfer of all or a portion of
a distribution be made to either a traditional Individual Retirement Account(IRA)or What are the loan rules and requirements?
another qualified employer plan willing to accept the transfer.A direct transfer will result
in no tax being due until you withdraw funds from the traditional IRA or other qualified There are various rules and requirements that apply for any loan which are outlined in
employer plan.Like the rollover,under certain circumstances all or a portion of the this question. In addition,we have established a written loan program which explains these
amount to be distributed may not quality for this direct transfer,e.g.,a distribution of less than$200 will not be eligible for a direct transfer.If you elect to actuallyrequirements in more detail,You can request a copy of the loan program from the Administrator.
receive the Generally,the rules for loans include the following:
distribution rather than request a direct transfer,then in most cases 2f y of the
distribution amount will be withheld for federal income tax purposes.if you decide to Loans are available to Participants on a reasonably equivalent basis.Loans will be
directly transfer all or t portion of yourty for of p amount,you(and your spouse,if you made to participants who are creditworthy.The Administrator may request that you
are married)must first waive the annuity form of payment(Sae the question"May i elect provide additional information,such as financial statements,tax returns and credit
reports to make this determination.
13 14
• All loans must be adequately secured.You must sign a promissory note along with a ARTICLE XI
PROTECTED BENEFITS AND CLAIMS PROCEDURES
loan pledge.Generally,you must use your vested Accrued Benefit as security for the
loan,provided the outstanding balance of all your loans does not exceed 50%of your Is my benefit protected?
vested Accrued Benefit.In certain cases,the Administrator may require you to provide
additional collateral to receive a loan. As a general rule,your interest in your Accrued Benefit,including your vested interest,
may not be alienated.This means that your interest may not be sold,used as collateral for a
• You will be charged a reasonable rate of interest for any loan received from the Plan. j loan(other than a Plan loan),given away or otherwise transferred.in addition,your creditors
The Administrator will determine a reasonable interest rate by reviewing the interest may not attach,garnish or otherwise interfere with your Accrued Benefit,
rates charged for similar types of loans by other lenders.
Are there any exceptions to the general rule?
• if approved,your loan will provide for level amortization with payments to be made
not less frequently than quarterly.Generally,the term of the loan may not exceed five(5) There are two exceptions to this general rule.The Administrator must honor a"qualified
years.However,if the loan is for the purchase of your principal residence,the domestic relations order."A"qualified domestic relations order"is defined as a decree or order
Administrator may permit a longer repayment period.Unless approved by the issued by a court that obligates you to pay child support or alimony,or otherwise allocates a
Administrator,you must repay your loan through payroll deduction.if you have an portion of your assets in the Plan to your spouse,former spouse,child or other dependent,if a
unpaid leave of absence or go on military leave while you have an outstanding loan, qualified domestic relations order is received by the Atlminislrator,all or a portion of your
please contact the Administrator to find out your repayment options. benefits may be used to satisfy the obligation.The Administrator will determine the validity of
any domestic relations order received.You and your beneficiaries can obtain,without charge,a
• The amount the Plan may loan to you is limited by rules under the Internal Revenue copy of the QUALIFIED DOMESTIC RELATIONS ORDER PROCEDURE from the
Code.All loans,when added to the outstanding balance of all other loans from the Plan, Administrator.
will be limited to the lesser of: j
The second exception applies if you are involved with the Plan's administration.If you
(a) $25,000 reduced by the excess,if any,of your highest outstanding balance of are found liable for any action that adversely affects the Plan,the Administrator can offset your
loans from the Plan during the one-year period prior to the date of the loan over your benefits by the amount you are ordered or required by a court to pay the Plan.All or a portion of
current outstanding balance of loans or your benefits may be used to satisfy any such obligation to the Plan.
(b) 1(2 of your vested Accrued Benefit, Can the Plan be amended?
The$25,000 limit stated in(a)above will not be reduced for loans made on or before Yes.We have the right to amend the Plan at any time.in no event,however,will any
December 31,1986. amendment authorize or permit any part of the Plan assets to be used for purposes other than
the exclusive benefit of participants or their beneficiaries.Additionally,no amendment will cause
If you are one of the highest compensated active or former employees,your loans may any reduction in your Accrued Benefit,
be further restricted.Your Administrator can provide you with more details if you are
affected. What happens if the Plan is terminated?
Your spouse generally must consent to any loan before it can be made if you use Although we intend to maintain h y 9 the Plan indefinitely,contributions
we reserve the right la terminate the
your vested Interest as security for the loan. Plan at any time.Upon termination,no further contributions will be made to the Plan and you will
become 100%vested in your Accrued Benefit(to the extent funded as of such date of
• If you fail to make payments when they are due under the terms of the loan,you will termination).We may direct that either:
be considered to be"in default."The Trustee will consider your loan to be in default if
any scheduled loan repayment is not made by the end of the calendar quarter following (a) benefits be distributed to you in any manner permitted by the Plan as soon as
the calendar quarter in which the missed payment was due.The Plan would then have practicable;or
authority to lake all reasonable actions to collect the balance owing on the loan.This
could include filing a lawsuit or foreclosing on the security for the loan.Under certain (b) the Trust created by the Plan be continued and benefits be distributed to you or
circumstances,a loan that is in default may be considered a distribution from the Plan, your beneficiaries as if the Plan had not terminated.(See the question"How will my
and could result in taxable income to you.In any event,your failure to repay a loan will benefits be paidT found in the Article of this SPD entitled"FORM OF BENEFIT
reduce the benefit you would otherwise be entitled to from the Plan. PAYMENT.')
Upon termination of the Plan,the assets of the trust will be divided among participants
and beneficiaries in accordance with the following priorities:
15 16
I
to provide benefitsformer participants who have rallied under fee Plan prior to
its termination without reference
time and the date by which the Plan expects to render a decision,If,prior to the end of the first
its nce to the order of retirement. 30-day extension period,the Administrator determines that,due to matters beyond the control of
to provide benefits
the Plan,a decision cannot be rendered within that extension period,the period for making the
Da te but have not reread on
participants who have reached their Normal Retirement determination may be extended for up to an additional 30 days,provided that the Administrator
Da the date of termination,without reference to the order in notifies you,prior to the expiration of the first 30-day extension period,of the circumstances
which they will have reached their Normal Retirement Date. requiring the extension and the date as of which the plan expects to render a decision.In the
case of any such extension,the notice of extension will specifically explain the standards on
(c) to provide benefits to participants who have not reached their Normal Retirement which entitlement to a benefit is based,the unresolved issues that prevent a decision on the
Date on the date of termination,without reference to the order that each participant will claim,and the additional information needed to resolve those issues,and you will be afforded at
attain Normal Retirement Date.The benefit will be based on your Accrued Benefit at the least 45 days within which to provide the specified information.
time of termination.
Any excess funds will revert to us. The Administrator's written or electronic notification of any adverse benefit determination
must contain the following information:
Are my benefits guaranteed?
(a) The specific reason or reasons for the adverse determination.
No.Your pension benefits under the Plan are not insured by the Pension Benefit (b} Reference to the specific Plan provisions on which the determination is based.
Guaranty Corporation(PBGC),a Federal insurance agency,because the insurance provisions
of ERISA are not applicable to the Plan,if the Plan terminates without enough money to pay all
benefits,then the assets of the trust will be divided among participants and beneficiaries in (c) A description of any additional material or information necessary for you to
accordance with the priorities established above. perfect the claim and an explanation of why such material or information is necessary.
How do I submit a claim for Plan benefits? (d) Appropriate information as to the steps to be taken if you or your beneficiary want
to submit your claim for review.
Benefits will be paid to you and your beneficiaries without the necessity of formal claims. (e) In the case of disability benefits:
However,if you think an error has been made in determining your benefits,then you or your
beneficiaries may make a request for any Plan benefits to which you believe you are entitled. I (1) if an internal rule,guideline,protocol,or other similar criterion was relied
Any such request should be in writing and should be made to the Administrator. upon in making the adverse determination,either the specific rule,guideline,
If the Administrator determines the claim is valid,then you will receive a statement protocol,or other similar criterion;or a statement that such rule,guideline,
describing the amount of benefit,the method or methods of payment,the timing of distributions protocol,or other similar criterion was relied upon in making the adverse
and other information relevant to the payment of the benefit. determination and that a copy of the rule,guideline,protocol,or other similar
criterion will be provided to you free of charge upon request.
What if my benefits are denied? -
(2) If the adverse benefit determination is based on a medical necessity or
Your request for Plan benefits will be considered a claim for Plan benefits,and it will be experimental treatment or similar exclusion or limit,either an explanation of the
subject to a full and fair review,If your claim is wholly or partially denied,the Administrator will specific or clinical judgment for the determination,applying the terms of the Plan
provide you with a written or electronic notification of the Plan's adverse determination.This to your medical circumstances,or a statement that such explanation will be
written or electronic notification must be provided to you within a reasonable period of time,but provided to you free of charge upon request.
not later than 90 days after the receipt of your claim by the Administrator,unless the If your claim has been denied,and you want to submit your claim for review,you must
Administrator determines that special circumstances require an extension of time for processing follow the Claims Review Procedure in the next question.
your claim.If the Administrator determines that an extension of time for processing is required,
written notice of the extension will be furnished to you prior to the termination of the'
90 daya p y initial What is the Claims Review Procedure?
period.In ex event will such extension exceed a l clout of 90 da s from the end of such
initial period.The extension notice will indicate the special circumstances requiring an extension Upon the denial of your claim for benefits,you may file your claim for review,in writing,
of time and the date by which the Plan expects to render the benefit determination. with the Administrator.
In the case of a claim for disability benefits,the Administrator will provide you with (a) YOU MUST FILE THE CLAIM FOR REVIEW NO LATER THAN 60 DAYS
written or electronic notification of the Plan's adverse benefit determination within a reasonable AFTER YOU HAVE RECEIVED WRITTEN OR ELECTRONIC NOTIFICATION OF AN
Period of time,but not later than 45 days after receipt of the claim by the Plan.This period may ADVERSE BENEFIT DETERMINATION.
be extended by the Plan for up to 30 days,provided that the Administrator both determines that
such an extension is necessary due to matters beyond the control of the Plan and notifies you,
prior to the expiration of the Initial 45 day period,of the circumstances requiring the extension of
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HOWEVER,IF YOUR CLAIM IS FOR DISABILITY BENEFITS,YOU MUST FILE (b) Reference to the specific Plan provisions on which the benefit determination is
THE CLAIM FOR REVIEW NO LATER THAN 180 DAYS FOLLOWING RECEIPT OF based.
NOTIFICATION OF AN ADVERSE BENEFIT DETERMINATION.
C A statement that you are entitled to receive,upon request and free of charge,
raising to your claim for benefits.You may submit written comments,documents,records,and other information reasonable access to,and copies of,all documents,records,and other information
rel relevant to your claim for benefits.
(e) You will be provided,upon request and free of charge,reasonable access to,and (tl) in the case of disability benefits:
copies of,all documents,records,and other information relevant to your claim for
benefits. (1) if an internal rule,guideline,protocol,or other similar criterion was relied
into
upon in making the adverse determination,either the specific rule,guideline,
Your claim for review must be given full and fair review.This review will take protocol,or other similar criterion:or a statement that such rule,guideline,
into account all comments,documents,records,and other information submitted you protocol,or other similar criterion was relied upon in making the adverse
considered in the initial benefit determination.
relating to your claim,without regard whether such information was submitted orr determination and that a copy of the rule,guideline,protocol,or other similar
criterion will be provided to you free of charge upon request.
In addition to the Claims Review Procedure above,if your claim is for disability benefits, (2j If the adverse benefit determination then the Claims Review Procedure provides that: a mination is based on a medical necessity or
experimental treatment or similar exclusion or limit,either an explanation of the
a specific or clinical judgment for the determination,applying the terms of the Plan
O Your claim will be reviewed without deference to the initial adverse benefit to your medical circumstances,or a statement that such explanation will be
determination.and the review will be conducted by an appropriate named fiduciary of the provided to you free of charge upon request.
Plan who is neither the individual who made the adverse benefit determination that is the
subject of the appeal,nor the subordinate of such individual. If benefits are provided or administered b an insurance company,
Y' p y,insurance service,or
other similar organization which is subject to regulation under the insurance laws,the claims
or In deciding an appeal of any adverse benefit determination that It based in whole procedure relating to those benefits may provide for review.If so,that company,service,or
or part on medical judgment,the appropriate named fiduciary will consult with a health organization will be the entity to which claims are addressed.Ask the Administrator if you have
care professional who has appropriate training and experience in the field of medicine involved in the medical judgment. any questions regarding the proper person or entity to address claims.
(e) Any medical or vocational experts whose advice was obtained on behalf of the If you have a claim for benefits which is denied upon review,in whole or in part,you may
file suit in a state or Federal court.
Plan in connection with your adverse benefit determination will be identified,without
regard to whether the advice was relied upon in making the benefit tlefermination. What are my rights as a Plan participant?
(d) The health care professional engaged for purposes of a consultation under(b) As a participant in the Plan you are entitled to certain rights and protections under the
above will be an individual who is neither an individual who was consulted in connection Employee Retirement Income Security Act of 1974("ERISA")-ERISA provides that all Plan
with the adverse benefit determination that is the subject of the appeal,nor the participants are entitled to:
subordinate of any such individual.
The Administrator will provide you with written or electronic notification of the Plan's (a) Examine,without charge,at the Administrator's office and at other specified
benefit determination on review.The Administrator must provide you with notification of this locations,all documents governing the Plan,including insurance contracts and collective
bargaining agreements,and a copy of the latest annual report(Form 5500 Series)filed
denial within 60 days after the Administrator's receipt of your written claim for review,unless the
Administrator determines that special circumstances require n by the Plan with the U.S.Department of Labor and available at the Public Disclosure
q a extension of time for processing I
g Room of the Employee Benefits Security Administration.
your claim.if the Administrator determines that an extension of time for processing is required,
written notice of the extension will be furnished to you prior to the termination of the initial 60
day period.In no event will such extension exceed a period of 60 days from the end of the initial h7 Obtain,upon written request to the Administrator,copies of documents governing
t
period.The extension notice will indicate the special circumstances requiring an extension of the operation of the Plan,including insurance contracts and collective bargaining
time and the dale by which the Plan expects to render the determination on review.However,if agreements,and copies of the latest annual report(Form 5500 Series)and updated
your claim relates to disability benefits,then 45 days will apply instead of 60 days in the summary plan description.The Administrator may make a reasonable charge for the
preceding sentences.in the case of an adverse benefit determination,the notification will set copies,
forth:
(c) Receive a summary of the Plan's annual financial report.The Administrator is
(a) The specific reason or reasons for the adverse determination, required by law to furnish each participant with a copy of this summary annual report.
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(d) Obtain a statement telling you whether you have a right to receive a pension at I,I.
Normal Retirement Age and,if so,what your benefits would be at Normal Retirement General Plan Information
Age if you stop working under the Plan now.If you do not have a right to a pension
benefit,the statement will tell you how many years you have to work to get a right to a Truckee Donner Public Utility District Defined Benefit Plan is the name of the Plan.
pension.THIS STATEMENT MUST BE REQUESTED IN WRITING AND IS NOT
REQUIRED TO BE GIVEN MORE THAN ONCE EVERY TWELVE(12)MONTHS.The We have assigned Plan Number 001 to the Plan.
Plan must provide this statement free of charge.
In addition to creating rights for Plan participants,ERISA imposes duties upon the The amended and restated provisions of the Plan become effective on 01/01/2001.
people who are responsible for the operation of the Plan.These people called"fiduciaries"of The Plan's records are maintained on a twelve-month period of time.This is known as
the Plan,have a duty to operate the Plan prudently and in the interest of you and other Plan the Plan Year.The Plan Year begins on January 1 and ends on December 31.
participants and beneficiaries.No one,including your Employer or any other person,may fire
you or otherwise discriminate against you in any way to prevent you from obtaining a pension
benefit or exercising your rights under ERISA. Certain valuations and distributions are made on the Anniversary Date of the Plan.This
sate is December 31.
If your claim for a pension benefit is denied or ignored,in whole or in part,you have a The contributions made to the Plan will be held and invested by the Trustee of the Plan,
right to know why this was done,to obtain copies of documents relating to the decision without
charge,and to appeal any denial,all within certain time schedules. The Plan and Trust will be governed by the laws of the State of California.
Under ERISA,there are steps you can take to enforce the above rights.For instance,if Benefits provided by the Plan are NOT insured by the Pension Benefit Guaranty
you request materials from the Plan and do not receive them within 30 days,you may file suit in Corporation(PBGC)because the insurance provisions under the Employee Retirement Income
a Federal court.In such a case,the court may require the Administrator to provide the materials Security Act(ERISA)are not applicable to the Plan,
and pay you up to$110.00 a day until you receive the materials,unless the materials were not
sent because of reasons beyond the control of the Administrator. Employer Information
If you have a claim for benefits which is denied or ignored,in whole or in part,you may ! Your Employer's name,address and identification number are:
file suit in a state or Federal court.In addition,if you disagree with the Plan's decision or lack
thereof concerning the qualified status of a domestic relations order or a medical child support ee Donner Public Utility District
order,you may file suit in Federal court. Truckee
Donner Pass Road
If it should happen that the Plan's fiduciaries misuse the Plan's money,or if you are Truckee,California 96161
discriminated against for asserting 94-6001449
9 g your rights,you may seek assistance from the U.S.
Department of Labor,or you may file suit in a Federal court.The court will decide who should Administrator Information
Pay court costs and legal fees.If you are successful,the court may order the person you have
sued to pay these costs and fees.If you lose,the court may order you to pay these costs and The Administrator is responsible for the day-to-day administration and operation of the
fees if,for example,it finds your claim is frivolous. Plan.For example,the Administrator maintains the Plan records,including
your benefit
information, you with the forms you n to complete for Plan participation and directs
What can I do If I have questions or my rights are violated? of your
the payment of yourr time.
benefit at the appropriate time.The Administrator will also allow you to
If y questions about the Plan,an ,you should contact the review the formal Plan document and certain other materials related to the Plan. If you have any
Y e Administrator.If you questions about the Plan and your participation,you should contact the Administrator.The
have any questions about this statement or about your rights under ERISA,or if you need Administrator may designate another person or persons to perform some duties of the
assistance in obtaining documents from the Administrator,you should contact the nearest office Administrator.
of the Employee Benefits Security Administration,U.S.Department of Labor,listed in the
telephone directory or the Division of Technical Assistance and Inquiries,Employee Benefits
Security Administration,U.S.Department of Labor,200 Constitution Avenue,N.W.,Washington, The Administrator has the complete power,in its sore discretion,to determine all
D.C.20210.You may also obtain certain publications about our rights and responsibilities questions arising in connection with the administration,interpretation,and application tof he
Y 9 P Plan(and any related documents and upon all policies).Any such determination by the
under ERISA by tailing the publications hotline of Employee Benefits Security Administration. Administrator is conclusive and binding upon all persons.
ARTICLE XII
GENERAL INFORMATION ABOUT THE PLAN
There is certain general information which you may need to know about the Plan.This
information has been summarized for you in this Article.
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The name,address and business telephone number of the Administrator are:
Truckee Donner Public Utility District
11570 Donner Pass Road
Truckee,California 96161
530-587-3896
Trustee Information
All money that is contributed to the Plan is held in a trust fund.The Trustee is
responsible for the safekeeping of the trust fund.The trust fund established by the Trustee will
be the funding medium used for the accumulation of assets from which benefits will be
distributed.
The names of the Plan's Trustees are:
Joseph R.Agues Trustee
J.Ronald Hemig,Trustee
James A.Maass,Trustee
Patricia S.Sutton,Trustee
Nelson Van Gundy,Trustee
The Trustees shall collectively be referred to as Trustee throughout
Description. this Summary Plan
i
The principal place of business of the Plan's Trustee is:
11570 Donner Pass Road
Truckee,California 96161
Service of Legal Process
The name and address of the Plan's agent for service of legal process are:
Truckee Donner Public Utility District
11570 Donner Pass Road
Truckee,California 96161
Service of legal process may also be made upon the Trustee or Administrator.
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