HomeMy WebLinkAboutResolutions - 2000.01.27 - 26009January 27, 2000
MISCELLANEOUS RESOLUTION # 00010
BY: PERSONNEL commyrrEE, THOMAS A. LAW, CHAIRPERSON
IN RE: DEFINED CONTRIBUTION RETIREMENT PLAN RESOLUTION AMENDMENT
- NONDISCRIMINATION TESTING FOR HIGHLY COMPENSATED EMPLOYEES
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS the County of Oakland established the Oakland County Employees
Retirement System under authority of Section 12(A) of Act 156, P.A. of 1851, as amended;
and
WHEREAS the County of Oakland established a defined contribution part by
Miscellaneous Resolution 94185; and
WHEREAS the Congress of the United States passed the Tax Reform Act of 1997
that suggested that governmental employers amend their plans to remove references to
nondiscrimination testing in order to avoid nondiscrimination testing and operational
noncompliance with the plan provisions and, further, plans must be amended to comply
with the change in law due to TRA-97 by the close of the 2000 plan year; and
WHEREAS the County of Oakland wishes to continue to keep its retirement system
and its rules in compliance with the Federal statutes.
NOW THEREFORE BE IT RESOLVED that the Board of Commissioners amend the
Defined Contribution part of the Oakland County Employees Retirement Resolution by
deleting in its entirety Section 3(n)(1) and (2) as follows:
(n) Employee means any person employed by the County.
(1) "Highly Compensated Employees" ("HCE") include highly compensated
active employees and highly compensated former employees. A highly compensated
active employee includes any employee who performs service for the Employer
during the "Determination Year" and who, during the "Look-Back Year:" (I) received
compensation greater than seventy-five thousand and 00/100 dollars ($75,000.00)
(As adjusted by Code Section 415(d), (ii) received compensation greater than fifty
thousand and 00/100 dollars ($50,000.00) (As adjusted by Code Section 415(d))
and was a Member of the "top-paid group" for such year; or (iii) was an officer of
the employer and received compensation during such year that is greater than fifty
percent (50%) of the dollar limitation in effect under Code Section 415(b)(1)(A).
(2) The term highly compensated employee includes: (I) employees who
are both described in the preceding sentence if the term "determination year" is
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sufficient to demonstrate satisfaction of the ACP test.
(7) The determination and treatment of the contribution percentage of any
Member shall satisfy such other requirements as may be prescribed by the
Secretary of the Treasury.
(8) Definitions for the purposes of this section:
(I) "Aggregate Limit" means the sum of (a) 125 percent of the ACP of Non-
HCEs and (b) the lesser of 200% or two plus the ACP.
(ii) "Average Contribution Percentage" means the average of the
Contribution Percentages of the Eligible Members in a group.
(iii) "Contribution Percentage" means the ratio (expressed as a percentage)
of the Member's Contribution Percentage Amounts to the Member's Compensation
for the Plan Year (whether or not the employee was a Member for the entire Plan
Year).
(iv) "Contribution Percentage Amounts" means the Employee Contributions
for the Member for the Plan Year.
(v) "Eligible Member" means any employee who is eligible to make an
Employee Contribution.
(vi) "Employee Contribution" means any contribution made to this
Retirement System by or on behalf of a Member that is included in the Member's
gross income in the year in which made and that is maintained under a separate
account to which earnings and losses are allocated.
(vii) "Matching Contributions" means an employer contribution made to this
or any other defined contribution plan on behalf of a Member on account of an
Employee Contribution made by such Member, or on account of a Member's
Elective Deferral, under a plan maintained by the employer.
(9) (I) Notwithstanding any other provision of this Retirement System, Excess
Aggregate Contributions, plus any income and minus any loss allocable thereto,
shall be distributed no later than the last day of each Plan Year to Members to
whose accounts such Excess Aggregate Contributions were allocated for the
preceding Plan Year. Excess Aggregate Contributions of Members who are subject
to the family aggregation rules shall be allocated among family Members in
proportion to the Member of each family Member that is combined to determine
the combined ACP. If such Excess Aggregate Contributions are distributed more
than 2 1/2 months after the last day of the Plan Year in which such excess amounts
arose, a ten (10) percent excise tax shall be paid by the County as to those
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amounts. Such excise tax shell nof be paid or reimbursed by the Retirement
System. Excess Aggregate Contributions shall be treated as annual additions.
(ii) Determination of income or loss: Excess Aggregate Contributions shall
be adjusted for any income or loss up to the date of distribution. If the income or
loss allocable to Excess Aggregate Contributions can not be calculated on a daily
basis, same shall be the sum of: (1) income or loss allocable to the Member's
Employee Contribution Account for the Plan Year multiplied by a fraction, the
numerator of which is such Member's Excess Aggregate Contributions for the year
and the denominator is the Member's Account Balance(s) attributable to
Contribution Percentage Amounts without regard to any income or loss occurring
during such Plan Year; and (2) ten percent of the amount determined under (1)
multiplied by the number of whole calendar months between the end of the Plan
Year and the date of distribution, counting the month of distribution if
distribution occurs after the 15th of such month.
(iii) Accounting for Excess Aggregate Contributions: Excess Aggregate
Contributions shall be distributed from the Member's Employee Contribution
Account.
(iv) "Excess Aggregate Contributions" means for any Plan Year, the excess
of:
(1) the aggregate Contribution Percentage amounts taken into account in
computing the numerator of the contribution percentage actually made on behalf
of HCEs for such Plan Year, over
(2) the maximum Contribution Percentage amounts permitted by the ACP
Test (determined by reducing contributions made on behalf of HCEs in order of
their contribution percentages beginning with the highest of such percentages).
Mr. Chairperson, on behalf of the Personnel Committee, I move the
adoption of the foregoing resolutions, subject to the approval of the State
County Pension Plan Committee.
PERSONNEL COMMITTEE
Personnel Committee Vote:
Motion carried on unanimous roll call vote with Gregory absent.
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HE FORE((. prpe-
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.,JvAs Pa son. County Executive Date
Resolution #00010 January 27, 2000
Moved by Law supported by McPherson the resolution be adopted.
AYES: Law, McCulloch, McPherson, Melton, Millard, Moffitt, Obrecht, Palmer,
Patterson, Schmid, Sever, Taub, Amos, Appel, Causey-Mitchell, Colasanti, Coleman,
Buckley, Dingeldey, Douglas, Galloway, Garfield, Gregory. (23)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, G. William Caddell, Clerk of the County of Oakland, do hereby certify that the
foregoing resolution is a true and accurate copy of a resolution adopted by the
Oakland County Board of Commissioners on January 27, 2000 with the original
record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the
County of Oakland at Pontiac, Michigan this 27t4 day pt. January, 2000.
G. William Caddell, County Clerk