HomeMy WebLinkAboutMemo RESOLUTION NO. 8532
OF THE
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
AMENDING DISTRICT'S PENSION PLAN AND
AUTHORIZING APPROPRIATE SIGNATURE
WHEREAS , the Truckee Donner Public Utility District adopted a
defined benefit pension plan on August 15 , 1983 ; and
WHEREAS , changes and clarifications as required by the Internal
Revenue Service , TERFA, and the Retirement Equity Act of 1984 ,
were adopted by Resolution No. 8476 on December 17 , 1984 ; and
WHEREAS , a third amendment to the District ' s pension plan is
necessary in order to bring the plan into compliance with the
Retirement Equity Act of 1984 and the Tax Reform Act of 1984 ; and
WHEREAS , the Board of Directors of the Truckee Donner Public
Utility District has determined it to be in the best interest of
the District to amend its present pension plan;
NOW , THEREFORE , BE IT RESOLVED by the Board of Directors as
follows :
1 . That the pension plan adopted August 15 , 1983 and
amended December 17 , 1984 , be changed in accordance
with the third amendment , copy of which is attached
hereto and made a part hereof.
2 . That the President of the Board be authorized to
execute said amendment .
PASSED AND ADOPTED by the Board of Directors of the Truckee
Donner Public Utility District at a meeting duly called and held
on the 19th day of August , 1985 , by the following roll call vote :
AYES : Cooley, Corbett, Hamilton, Maass & Duffy
NOES : None
ABSENT : None
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
ATTEST :
Susan Ford , Deputy District Clerk
THIRD AMENDMENT
TO THE
TRUCKEE-DONNER PUBLIC UTILITY DISTRICT
DEFINED BENEFIT PENSION PLAN
TRUCKEE-DONNER PUBLIC UTILITY DISTRICT, hereby amends the Defined Benefit Pension
Plan, which was adopted by said Employer on August 15, 1983. The Employer by these
amendments has updated said plan to the requirements of the Internal Revenue
Service and the Department of Labor as of the effective of this amendment, which
is January 1, 1984.
Section C, Subsection 2(b) of the Joinder Agreement shall be changed to read:
(x) minimum age of 25 until January 1, 1985, when the minimum age shall become 21 .
Section D, Subsections (a) through (cc) of the Joinder Agreement shall be replaced
by the following: —'
(a) (x) Compensation (as that term is defined in Article 1.8) for the limitation
year ending with or within the Plan Year.
(b) ( ) Compensation (as that term is defined in Article 1.8) for the limitation
year ending with or within the Plan Year, excluding Bonuses paid to Key Employees,
as defined in Article 1.19, which are disregarded for Plan Contribution purposes
by Board of Directors Resolution.
Section G, Subsection 4(a) of the Joinder ,Agreement shall be changed to read:
( ) Years of service prior to age 18
The first sentence of Section K 1 of the Joinder Agreement shall be amended to
read as follows: —'
The Benefit Accrual Computational Period shall be the 12 consecutive-month period
commencing on Date of Hire and each anniversary of the Date of Hire.
Article 1.2 of the Plan shall be changed to read as follows:
1.2 Accrued Benefit Derived from Mandatory Participant Contributions means the
Accrued Benefit derived from accumulated contributions made by a Participant under
the Plan as of any applicable date, accumulated at 5% interest per annum, and
multiplied by a factor of 10%, which yields an annual benefit in the form of a
single life annuity commencing at Normal Retirement Age.
The Accrued Benefit derived from Employer contributions is the excess, if any, of
the Participant's total Accrued Benefit as of any applicable date over the Accrued
Benefit derived from Mandatory Participant Contributions as of such date.
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�.-. For purposes of computing an employees right to his accrued benefit derived ,from
Employer contributions, Years of Service and Breaks in Service shall be measured
by reference to the same 12-month period commencing on the date an employee first
performs an Hour of Service and each subsequent 12-month period will commence on
the anniversary of such date.
Article 1.6 shall be changed to read:
1.6 Break in Service means (i) for the purposes of participation, the eligibility
computational period in which an employee does not complete more than 500 Hours of
Service, (ii) for the purposes of vesting, the vesting computational period in
which an employee does not complete more than 500 Hours of Service, and (iii) for
the purposes of benefit accrual, the benefit accrual computational period in which
an employee does not complete more than 500 Hours of Service.
Article 1.9 shall be changed to read:
1 .9 Compensation means a Participant's earned income, wages, salaries, and fees
for professional services and other amounts received for personal services
actually rendered in the course of employment with the Employer maintaining this
Plan (including, but not limited to, commissions paid to salesman, compensation
for services on the basis of a percentage of profits, commissions on insurance
premiums, tips and bonuses), and excluding the following:
(a) Employer contributions to a plan of deferred compensation which are not
includible in the Employee's gross income for the taxable year in which
contributed, or employer contributions under a simplified employee pension plan to
the extent such contributions are deductible by the Employee, or any distributions
from a plan of deferred compensation;
(b) Amounts realized from the exercise of a non-qualified stock option, or when
restricted stock (or property) held by the Employee either becomes freely
transferable or is no longer subject to a substantial risk or forfeiture;
(c) Amounts realized from the sale, exchange or other disposition of stock
acquired under a qualified stock option; and
(d) other amounts which received special tax benefits, or contributions made by
the employer towards the purchase of an annuity described in Section 403(b) of the
Code.
For the purposes of applying the limitations of this article, compensation for a
limitation year is the compensation actually paid or includible in gross income
during such year.
The first sentence of Article 1.10 b shall be changed to read:
Vesting Computational Period means the 12 consecutive-month period commencing with
the date an Employee first performs an Hour of Service for the Employer (Date of
Hire) and each anniversary of the Date of Hire, and, during which an Employee must
complete a Year of Service for vesting purposes.
Article 1.10 c shall be changed to read:
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Benefit Computational Period means the ,period set forth in Section K of the
Joinder Agreement.
Article 1.14 shall be changed to read:
1.14 Employee means any individual employed by the Employer, including any
individual employed by any other Employer required to be aggregated under Section
414(b), (c), (m), or (n) of the Code. Individuals who are non-resident aliens and
who do not have any income which is subject to U. S. Income Taxes shall be
excluded.
Article 1.18 a shall be changed to include the following sentence:
"Hours of Service will be credited for employment with other members of an
affiliated service group, a controlled group of corporations, or a group of trades
or businesses under common control, of which the adopting Employer is a member."
Article 1.18 f shall be added as follows:
Solely for purposes of determining whether a Break in Service, as defined in
Article 1.7, for participation and vesting purposes has occurred in a
computational period, an individual who is absent from work for maternity or
paternity reasons shall receive credit for the hours of service which would
otherwise have been credited to such individual but for such absence, or in any
case in which such hours cannot be determined, 8 hours of service per day of such
absence. For purposes of this paragraph, an absence from work for maternity or
paternity reasons means an absence (i) by reason of the pregnancy of the
individual, (ii) by reason of a birth of a child of the individual, (iii) by
reason of the placement of a child with the individual in connection with the
adoption of such child by such individual, or (iv) for purposes of caring for such
child for a period beginning immediately following such birth or placement. The
hours of service credited under this paragraph shall be credited (i) in the
computation period in which the absence begins if the crediting is necessary to
prevent a Break in Service in the period, or (ii) in all other cases, in the
following computational period.
Article 1.36 of the Plan shall be added:
Key Employee means an Employee or Former Employee who, at any time during the
current Plan Year of any of the 4 preceeding Plan Years is or was (i) an officer
of the Employer having an annual compensation greater than 150% of the dollar
limit on annual additions with respect to any such Plan Year, (ii) 1 of the 10
Employees having annual compensation from the Employer of more than the dollar
limit on annual additions with respect to any such Plan Year and owning the
largest interests in the Employer, (iii) a 5 % owner of the Employer, or (iv) a 1%
owner of the Employer having an annual compensation from the Employer of more than
$150,000. The definition of a Key Employee shall include all beneficiaries of any
Key Employee as defined above.
Article 2.2LU shall be changed to read:
(b) Former Participants. A Former Participant shall become a Participant
immediately upon his return to the employ of the Employer, if such Former
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Participant had a non-forfeitable right to any portion of his benefits derived
from Employer contributions at the time of his severance from service. A Former
Participant who did not have a nonforfeitable right to any portion of the accrued
benefit derived from Employer contributions at the time of termination from
service will be considered a new Employee, for eligibility purposes, if the number
of consecutive one year Breaks in Service equals or exceeds the greater of 5 or
the aggregate number of years of service before such breaks in service. If such
Former Participant's Years of Service before separation from service may not be
disregarded pursuant to the preceding sentence, such Former Participant shall
participate immediately upon re-employment.
A portion of Article 3.6 shall be changed to read:
"In the event of any conflict between the terms of this Plan and the terms of any
Insurance Contract issued hereunder, the provisions of this Plan shall prevail.
All Insurance Contracts shall be acquired, held, and administered in accordance
with the following conditions:"
(c) Dividends and Other Credits. Any payments by the insurer on account of credits
such as dividends, experience rating credits, or surrender or cancellation credits
shall be applied within the taxable year of the Employer in which received or with
the next succeeding taxable year, toward the next premiums due before any further
Employer contributions are so applied.
Article 4E shall be replaced in its entirety by the following:
The following Top-Heavy Provisions shall become effective in any Year in which the
Plan is determined to be a Top-Heavy Plan. For Plans not in existence on July 1,
1982, these provisions are effective for Plan Years beginning after 1982. For all
other Plans, these provisions are effective for Plan Years Beginning after 1983.
4.1 Determination of Top-Heavy:
(a) The Plan will be considered a Top-Heavy Plan for the year if as of the last
day of the preceding year, (i) the present value of Accrued Benefits of
Participants who are Key Employees (as defined in Article 1.22 of this Plan)
exceeds 60v of the present value of the Accrued Benefits of all Participants (the
"60% Test"), or (ii) the Plan is part of a required aggregation group (within the
meaning of Section 416(g) of the Code) and the required aggregation group is
Top-Heavy. However, and notwithstanding the results of the 60% Test, the Plan
shall not be considered a Top-Heavy Plan for any Year in which the Plan is a part
of a required or permissive aggregation group which is not Top-Heavy. For the
purposes of making the "60% Test" for any Plan Year, Accrued Benefits shall be
those amounts calculated as of the last day of the preceding Plan Year and the
present value of those amounts shall be based on the actuarial assumptions set
forth in Section N of the Joinder Agreement. For the purposes of determining the
Accrued Benefit for any employee, such present value shall be increased by the
aggregate distributions made with respect to such employee under the Plan during a
5-year period ending on the determination date.
(b) For the purposes of this Plan: (1) Each Plan of the Employer which is required
to be included in an aggregation group shall be treated as Top-Heavy if such group
�--- is Top-Heavy. (2) A Required Aggregation Group shall ::lean each Plan of the
Employer in which a key employee is a participant, plus, each other plan of the
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J
Employer which enables any Plan in which a key employee is a participant to meet
r� the requirements of Code Sections 401(a)(4) or 410. (3) A Permissive Aggregation
Group shall mean an aggregation group which allows the Employer to treat any Plan
not required to be included in an aggregation group, as set forth in (2) above, as
being part of such a group if such group would continue to meet the requirements
of Code Sections 401(a)(4) and 410 with said Plan being taken into account.
(c) SRecial Rules: (1) The date for determining the present value of Accrued
Benefits for all Participants for Top-Heavy purposes for the first Plan Year shall
be the last day of the preceding year. (2) Any Rollover Contribution initiated by
an Employee and made after December 31 , 1983, shall not be taken into account for
the purposes of determining whether this Plan is a Top-Heavy Plan. (3) If any
Participant is a non-key Employee for any Plan Year, but such individual was a key
Employee for any prior Plan Year, the Accrued Benefit for such Participant shall
not be taken into account. (4) For the purposes of computing the aggregate
limitation on benefits and contributions for an Employee who participates in
defined benefit and defined contribution plans maintained by the Employer which
are Top-Heavy Plans, paragraphs (2)(B) and (3)(B) of Code Section 415(e) shall be
applied by substituting 1.0 for 1.25.
4.2 Minimum Allocations:
(a) Notwithstanding the provisions of Article 1.1, for any year during which the
Plan is deemed a Top-Heavy Plan, the minimum Normal Monthly Retirement Benefit for
a Participant terminating employment at or after age 65, and the minimum Accrued
Benefit, payable at Normal Retirement Date, for a Participant whose service is
severed prior thereto with entitlement to a pension, shall be equal to the highest
of (i) 20 of his Average Monthly Compensation during his 5 highest paid
consecutive Years of Service multiplied by (ii) each of the first 10 years of his
credited service after December 31, 1983, in which the Plan is a Top-Heavy Plan.
(b) Participants eligible to receive the minimum accrued benefit set forth under
4.2(a) above shall be those participants who have completed at least 1,000 Hours
of Service for an Accrual Computational Period. Furthermore, non-key Employees who
have been (i) excluded from participation merely because their compensation is !
less than a stated amount, or (ii) been excluded from the Plan because a failure '
to make 'Mandatory Participant Contributions, must receive the minimum accrued
benefit.
(c) the provisions in this Article 4.2, shall not apply to any Participant to the
extent that the Participant is covered under any other Plan or Plans of the
Employer and the minimum allocation or benefit requirement applicable to this
Top-Heavy Plan is met in the other Plan or Plans.
(d) All accruals derived from Employer Contributions, whether or not attributable
to years for which the Plan is Top-Heavy, may be used in computing whether the
minimum accrual requirements of this Article 4.2 are satisfied.
4.3 Minimum Vesting:
Notwithstanding the provisions of Section G of the Joinder Agreement, in the event
this Plan becomes a Top-Heavy Plan, the vested percentage of each employee who is
a Participant while the Plan is a Top-Heavy Plan, in his Accrued Monthly
Retirement Benefit, shall not be less than the percentage determined in accordance
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with the following table:
r
Years of Service Vested Percentage
Less than 2 0%
2 but less than 3 20%
3 but less than 4 407.
4 but less than 5 60%
5 but less than 6 80%
6 or more 100%
4.4 Compensation Limitation:
For any year in which the Plan is a Top-Heavy Plan, the maximum Annual
Compensation of any Employee shall be limited to $200,000 for the purposes of this
Plan, or such higher amount as may be established by regulations or by the
Secretary of the Treasury under Section 416(d) of the Code.
4.5 Change in Top-Heavy Status:
If the Plan becomes a Top-Heavy Plan and subsequently ceases to be such, the
vesting schedule in paragraph 4.4 shall continue to apply in determining the
vested Accrued Benefit of any Participant who had at least 5 Years of Service as
of the Plan Year end in the last year of Top-Heavyness. For other Participants,
said schedule shall apply only to their Accrued Benefit as of such Plan Year end.
4.6 Distributions to Key Employees:
For any year in which the Plan is a Tog-?Heavy Plan, any benefits to which a
Participant who is a Key Employee is entitled shall commence not later than than
the Participant's taxable year in which he attains age 70 1/2, whether or not he
has severed service in such year. If a benefit distribution under the Plan is
made to a Key Employee before he attains age 59 1/2, and during a year in which
the Plan is a Top-Heavy Plan, the Participant shall be advised by the Committee
that an additional income tax may be imposed equal to 10% of the portion of the
amount so received which is included in his gross income for such taxable year,
unless such distribution is made on account of death or disability.
Article 5.2 b shall be changed to read:
(b) Former Participants. A Former Participant who had a nonforfeitable right to
all or a portion of his benefits derived from Employer Contributions at the time
of his severance from service shall receive credit for all Years of Service prior
to his Break in Service upon completing a Year of Service after his return to the
employ of the Employer. A Former Participant who did not have a nonforfeitable
right to any portion of his benefits derived from Employer contributions at the
time of his severance from service shall receive credit for Years of Service prior
to his Break in Service if (i) he completes a Year of Service after his return to
the employ of the Employer, and (ii) the number of consecutive Breaks in Service
does not exceed the greater of 5 or the aggregate number of Years of Service
before such Break in Service.
The following paragraph shall be added to the end of Article 6.9 a :
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Any increase in the $90,000 limitation stated above shall not be effective until
January 1st of the year for which such increase is established by regulations or
by the Secretary of the Treasury.
Article 7 shall be replaced in its entirely AL the followinjq:
7.1 General:
The Committee shall direct the Trustee to make payment of any benefit provided
under Article 6 and in accordance with Article 7 herein, in the event of death,
disability, termination of employment, plan termination, or at normal retirement
a,,e. :A qualified domestic relations order, as defined in Section 414(p) of the
Code, shall not cause payment of any benefit to be made from this Plan at an
earlier date than specified above.
The method of distribution of a benefit shall be as elected by the Participant, or
by his Beneficiary in the event of the Participant's death, and in accordance with
the following Articles:
7.2 Benefit Payable As An Annuity:
(a) A Participant who has not yet attained his Early or Normal Retirement Date, or
who is not married on the date benefits are to commence, shall be provided a
nonthly annuity payable in the Normal Annuity Form as provided in the Joinder
Agreement, unless another form of benefit is elected in accordance with Article
7.5 within a 90 day period prior to his benefit commencement date.
(b) A Participant who is married on the date benefits commence, and (i) begins to
receive payments under the Plan on or after his Normal Retirement Date, (ii) dies
on or after his Normal Retirement Date while still working for the Employer, or
(iii) separates from service on or after his Normal Retirement Date, and, after
satisfying the eligibility requirements for the payment of benefits under the Plan
dies prior to beginning to receive such benefits, shall be provided a Qualified
Joint P Survivor Annuity as described in Article 7.3, unless the Participant and
his or her spouse elect otherwise in accordance with Article 7.4.
(c) A Participant who is married and who separates from service prior to attaining
his Normal Retirement Date shall be provided a Qualified Joint & Survivor Annuity
as described in Article 7.3, unless the Participant and his or her spouse elect
otherwise in accordance with Article 7.4. A Participant who is married and who
dies prior to attaining his Normal Retirement Date, shall be provided a Qualified
Preretirement Survivor Annuity as described in Article 7.3, unless the Participant
and his or her spouse elect otherwise in accordance with Article 7.4.
(d) Nothing in this Article shall be construed in such a way as to deprive a
Participant and his or her spouse or Beneficiary of a higher benefit than required
under this Article, if, in the absence of this Article, the Participant and his or
her spouse or Beneficiary would have been entitled to such higher benefit.
7.3 Qualified Joint and Survivor Annuity:
r (a) A Qualified Joint & Survivor Annuity is an annuity for the life of the
Participant with a survivor annuity for the life of the spouse which is not less
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1
than SO percent and not more than 100 percent of the amount of the annuity which
is payable during the joint lives of the Participant and the spouse and which is
the actuarial equivalent of the normal form of benefit, or, if greater, any
optional form of benefit.
(b) A Qualified Preretirement Survivor Annuity is an annuity for the lifetime of
the Participant's surviving spouse, which is not less than the payment the spouse
would have received if: (i) in the case of a Participant who dies after attaining
the earliest retirement age under the Plan, the Participant had retired with an
immediate Qualified Joint & Survivor Annuity on the day before death occured, or,
(ii) in the case of a Participant who dies on or before the earliest retirement
age, the participant had (1) separated from service on the date of death, (2)
survived to the earliest retirement date, (3) retired with an immediate Qualified
Joint & Survivor Benefit at the earliest retirement age, or (4) died on the day
after the earliest retirement age. Payment of a benefit under this Article will
not be required any sooner than the earliest retirement age unless the surviving
spouse elects a later date. The earliest retirement age is defined as the
earliest date on which the Participant could elect to receive retirement
benefits.
7.4 Qualified Joint and Survivor Annuity Election:
(a) Information. The Committee shall provide to each Participant (i) in the case
of a Qualified Preretirement Survivor Annuity, at his date of entry into the Plan
and again at such later dates as the Committee deems proper, and (ii) in the case
of a Qualified Joint & Survivor Annuity, within a reasonable period of time before
the annuity starting date, a written description in non-technical language of (i)
the terms and conditions of the Qualified Preretirement Survivor Annuity or
Qualified Joint & Survivor Annuity, (ii) the Participant's right to make, and the
effect of, an election to waive the Joint & Survivor Annuity form of benefit,
(iii) the rights of the Participant's spouse, and (iv) the right to sake, and the
effect of, a revocation of an election.
(b) Spouse (surviving spouse). The spouse or surviving spouse of the Participant,
provided that a former spouse will be treated as the spouse or surviving spouse to
the extent provided under a qualified domestic relations order as described in
Section 414(p) of the Code.
(c) Qualified Joint & Survivor Annuity Elections. The Participant and his or her
legal spouse, will be entitled to elect to waive payment of benefits from the Plan
in the form of a Qualified Joint & Survivor Annuity and to elect an alternative
form of payment from among those available under the Plan. The election period
shall begin 90 days prior to the annuity starting date. Any election to waive a
Qualified Joint & Survivor Annuity and to receive in its place an alternative form
of benefit payment, must be signed in the presence of either (i) a notary public,
or (ii) a plan representative. Any election made pursuant to the above may be
revoked, and a different election made without limit as to the number of times.
(d) ualified Preretirement Survivor Annuity Elections. The Participant and his or
her legal spouse, will be entitled to elect to waive payment of benefits from the
Plan in the form of a Qualified Preretirement Survivor Annuity and to elect an
alternative form of payment from among those available under the Plan. The
election period shall begin on the first day of the Plan Year in which the
Participant attains age 35 and end on the date of the Participant's death. Tf the
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Participant separates from service prior to the first day of the Plan Year in
�. which age 35 is attained, with respect to benefits accrued prior to separation,
the election period shall begin on the date of separation. Any election to waive
payment of benefits in the form of a Qualified Preretirement Survivor Annuity and
to receive in its place an alternative form of benefit payment, must be signed in
the presence of either (i) a notary public, or (ii) a plan representative. Any
election made pursuant to the above may be revoked, and a different election made
without limit as to the number of times.
(e) Election by the Surviving Spouse. Notwithstanding the anything to the contrary
in this Article, in acknowledgement of the possible inflexibility of any elections
which may have been made by the Participant and his or her spouse, or in the
absence of any election to waive any Qualified Survivor Annuity, the surviving
spouse, at her option if requested in writing, shall have the right to revoke any
election previously made and make a new election, or to waive payment of benefits
in the form of a Qualified Survivor Annuity and make a new election, during a
period which begins 90 days prior to the benefit commencement date, unless the
Participant and his or her spouse have made an irrevocable election. Any waiver
or election made by the surviving spouse pursuant to this paragraph, shall be
signed in the presence of either (i) a notary public, or (ii) a plan
representative.
7.5 22tional Forms of Benefits:
Subject to Article 7.4, Participants may elect in writing to have their benefit
paid in one of the optional forms of payment which shall be the Actuarial
Equivalent of the Normal Form: (i) A lump sum distribution in cash; (ii) A lump
sum distribution in kind, if available on a non-discriminatory basis; (iii)
Substantially equal installments in cash, paid at least annually, not to exceed
the life expectance of the Participant or his Beneficiary; or (iv) An annuity
payable under any form which is available to the Plan, and which is in compliance
with the Code. Any annuity contract distributed from this Plan shall be
nontransferable.
A Beneficiary shall have the same election rights as the Participant with respect
to benefits which are payable due to the death of the Participant. A Participant
shall have the right to receive a distribution of any Life Insurance contracts in
force on his life, including any cash values held under said contracts, as a part
of his distribution.
7.6 Benefit Commencement Date:
(a) General Rule. The Committee shall determine the date on which payment of
benefits shall begin in accordance with the following policies: (i) Payment of any
part of the Participant's vested Employer Contribution Account shall not occur if
a severance from service has not taken place; (ii) Total Payment of a
Participant's benefit shall not take place until all unpaid Participant loans made
by the Plan to the Participant have been paid in full; (iii) Payment of the
Participant's benefit will be completed as soon as is administratively possible
after the close of the Plan Year in which the Participant incurs a Break in
Service.
(b) Latest Date of Payment. Notwithstanding the above, unless a Participant elects
otherwise, payment of a Participant's benefits shall begin no later than the 60th
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day after the close of the Plan Year in which the latest of the following occur:
(i) The date on which the Participant attains Normal Retirement Age; (ii) The
Participant reaches the loth anniversary of the date his participation in the Plan
commenced; (iii) The Participant service with the Employer is severed.
(c) Qualification for Early Retirement Benefit. Furthermore, if this Plan provides
for payment of an early retirement benefit, a Participant who satisfies the
service requirement for such early retirement benefit, but incurs a severance from
service (with any nonforfeitable right to an accrued benefit) before satisfying
the age requirement for payment of such early retirement benefit, is entitled upon
satisfaction of such age requirement to receive a benefit not less than the
benefit to which he would be entitled at the normal retirement age, actuarially
reduced under regulations prescribed by the Secretary of the Treasury, providing,
however, the benefit has not previously been paid to the Participant.
(d) Special Distribution Rules. Notwithstanding any provisions of Article 7 to the
contrary, the entire interest of a participant must be distributed either (i) not
later than the first day of April following the calendar year in which he attains
70 1/2, or (ii) in the case of an Employee other than a 57 owner of the Employer
(as described in Section 416(1) of the Code) not later than the first day of April
following the calendar year in which the Participant separates from service,
whichever is later.
If the Participant's entire interest is to be distributed in other than a
lump-sum, then the amount to be distributed each year must be at least an amount
equal to the quotient obtained by dividing the Participant's entire interest by
the life expectancy of the Participant and designated Beneficiary. Life expectancy
and joint and last survivor expectancy are computed by the use of the return
multiples contained in Section 1.72-9 of the Code. For purposes of this
computation, a Participant's life expectancy may be recalculated no more
frequently than annually, however, the life expectancy of a non-spouse Beneficiary
may not be recalculated. If the Participant's spouse is not the designated
Beneficiary, the method of distribution selected must assure that at least 50% of
the present value of the amount available for distribution is paid within the life
expectancy of the Participant.
If the Participant dies after distribution of his interest has commenced, the
remaining portion of such interest will continue to be distributed at least as
rapidly as under the method of distribution being used prior to the Participant's
death. If the Participant dies before distribution of his interest commences, the
Participant's entire interest will be distributed no later than 5 years after the
Participant's death except to the extent that an election is made to receive
distributions in accordance with the following: (i) if any portion of the
Participant's interest is payable to a designated Beneficiary, distributions may
be made in substantially equal installments over the life or life expectancy of
the designated Beneficiary commencing no later than 1 year after the Participant's
death; (ii) if the designated Beneficiary is the surviving spouse, the date
distributions are required to begin in accordance with (i) above shall not be
earlier than the date on which the Participant would have attained age 70 1/2,
and, if the spouse dies before payments be-in, subsequent distributions shall be
made as if the spouse had been the Participant. For the purposes of (i) and (ii)
above, payments will be calculated by use of the return multiples specified in
Section 1.72-9 of the Code. Life expectancy of the surviving spouse may be
recalculated annually. In the case of any other designated Beneficiary, life
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expectancy will be calculated at the time payment first commences and payments for
r. any 12-consecutive month period will be based on such life expectancy minus the
number of whole years passed since distribution first commenced.
7.7 Cash Out Provision; Repayment of Prior Distribution:
(a) Notwithstanding anything herein to the contrary, the Committee, in its sole
discretion, may distribute the benefit of a Participant in cash lump sum if
requested by a Participant, or without the Participant's consent if the
distribution (i) is made due to severance from service of the Participant, (ii)
constitutes the full value of the Participant's interest in the Plan, and (iii)
does not exceed $1,750 or such other amount as prescribed in regulations by the
Secretary of the Treasury or his delegate.
(b) In the event a Participant has received a distribution of benefits upon his
severance from service, and subsequently resumes employment covered by this Plan,
he shall have the right to repay the amount distributed plus interest at the rate
of 5% per annum compounded annually (or such other rate as may be specified by the
Secretary of the Treasury) from the date of distribution to the date of
repayment. The Participant shall have the right to repay such distribution within
the 2 year period following such resumption of employment, or prior to incurring 5
consecutive one-year breaks in service, whichever is earlier. Upon repayment as
set forth above, the full Accrued Retirement Benefit shall be restored. If such
repayment is not made, the Normal Monthly Retirement Benefit shall be reduced by
the Actuarial Equivalent of the Normal Monthly Retirement Benefit that could have
been provided by the amount distributed as a result of such severance from
service.
7.8 Payment to Minor or Incompetent:
In the event that any amount is payable to a minor or other legally incompetent
person, such payment shall be made for the benefit of such minor or other
incompetent person in any of the following ways as the Committee in its sole
discretion shall determine: (i) Directly to such person; (ii) To the legally
appointed guardian or conservator of such person; (iii) To the Superior Court
which has jurisdiction over the county of residence of such minor or incompetent
person; (iv) By the Trustee using such benefit for such person's care and
support.
The Committee shall not be required to see the proper application of any such
payment made, and any payment made shall be a complete discharge of liability
therefore under the Plan.
Article 12.5 shall be changed to read:
The interest of a Participant in the Plan and the Trust Fund or any Insurance
Contract shall not be subject to assignment, or transfer, or otherwise alienable,
either by the voluntary or involuntary act of such Participant, or by operation of
the law, nor shall it be subject to attachment, execution, garnishment,
sequestration, or other seizure under any legal equitable or other process, except
that this prohibition shall not apply to (i) any domestic relations order which is
determined to be a qualified domestic relations order as defined in Section 414(p)
•^ of the Code, or any other domestic relations order entered into prior to January
1, 1985, that concerns the division of any benefit payments when they may become
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payable in accordance with the terms of this Plan, or (ii) any loan made to a
�-� Participant or his Beneficiary under Article 12.11 to the ,extent that such loan is
secured by the nonforfeitable interest of the Participant in his account(s).
IN WITNESS WHEREOF, TRUCKEE-DONNER PUBLIC UTILITY DISTRICT has caused this
Amendment to be executed by its authorized Officer and the Trustees have accepted
said amendment and further confirm the Plan and Trust agreement in all other
respects as restated by this amendment.
Dated this day of 1985
i
l
Pr dent of e Board
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I