HomeMy WebLinkAboutResolutions - 2021.10.13 - 34928fro.AKLANDF�-
C O U N T Y M I C H I G AN
BOARD OF COMMISSIONERS
October 13, 2021
MISCELLANEOUS RESOLUTION #21-402
Sponsored By: Kristen Nelson
IN RE: Deferred Compensation 457(b) Plan Amendment and Restatement
Chairperson and Members of the Board:
WHEREAS under the authority of Public Law 95-600 Revenue Act of 1978, Oakland County established a
Deferred Compensation 457(b) Plan for eligible employees effective May 4, 1978 per MR48898; and
WHEREAS the Deferred Compensation 457(b) Plan ("Plan") is governed by the Oakland County Retirement
and Deferred Compensation Board ("Retirement Board"); and
WHEREAS the Retirement Board has approved the restated Plan to be effective retroactively as of January 1,
2020, to reflect the past operations of the Plan; and
WHEREAS the material changes are as follows:
Article II — Definitions has been updated to include terms pertaining to a Roth source within the Plan;
Section 3.5 was updated to reflect that a Plan Participant's election to decrease contributions to the Plan will
take effect immediately following receipt of a revised Deferral Agreement;
Section 4.3 was updated to remove obsolete language regarding 457 contribution limits;
Section 5.5 was added pursuant to the IRS Voluntary Closing Agreement and permits in-service distributions to
PINE employees that have attained age 59'/;
Article VI — Roth Provisions was added to allow the County to implement a Roth source tinder the Plan, if it so
desires;
Section 12.3 was updated to remove unnecessary language; and
Article XV — Signatures was updated to require signatures from the County, Plan Administrator, and Retirement
Board; and
WHEREAS the amendments herein do not change benefit levels provided by the County or result in any
additional costs to the County.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners adopts the
amended and restated Deferred Compensation Plan, effective January 1, 2020, as set forth in the attached
document.
Chairperson, the following Commissioners arc sponsoring the foregoing Resolution: Kristen Nelson.
fDate: October 13, 2021
David Woodward, Commissioner
Date: October 14, 2021
Hilarie Chambers, Deputy County Executive II
Date: October 14, 2021
Lisa Brown, County Clerk / Register of Deeds
COMMITTEE TRACKING
2021-10-05 Legislative Affairs & Government Operations - recommend to Board
2021-10-13 full Board
VOTE TRACKING
Motioned by Commissioner Gary McGillivray seconded by Commissioner Christine Long to adopt the attached
Resolution: Deterred Compensation 457(b) Plan Amendment and Restatement.
Yes: David Woodward, Michael Spisz, Karen Joliat, Kristen Nelson, Eileen Kowall, Christine Long, Philip
Weipert, Gwen Markham, Angela Powell, Thomas Kuhn, Charles Moss, Marcia Gershenson, Adam L.
Kochenderfer, Yolanda Smith Charles, Charles Cavell, Penny Luebs, Janet Jackson, Gary McGillivray,
Robert Hoffinan (19)
No: None (0)
Abstain: None (0)
Absent: Commissioner Miller III, Commissioner Gingell (2)
The Motion Passed.
ATTACIIMENTS
HR - 457(b) Deferred Comp Plan Oct. 2019 restatement_ clean (7.29 2021)
HR - 457(b) Deferred Comp Plan Oct. 2019 restatement_ redline (729.2021)
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, 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 October 13, 2021,
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 Circuit Court at Pontiac,
Michigan on Friday, October 11, 2021.
Lisa Brown, Oakland County Clerk /Register of Deeds
DRAFT Dated July 29, 2021
..Eli. FfILMOD MA,
Restated Resolution
January 1, 2020
DRAFT Dated July 29, 2021
TABLE OF CONTENTS
ARTICLEI - INTRODUCTION....................................................................................................
1
ARTICLE
II - DEFINITIONS.......................................................................................................
1
2.1
Account............................................................................................................................
1
2.2
Alternate Payee................................................................................................................
1
2.3
Beneficiary .......................................................................................................................1
2.4
Code.................................................................................................................................
1
2.5
Compensation...................................................................................................................2
2.6
Contributions....................................................................................................................2
2.7
County_ ...... ..................................................................... .................................
............. 2
2.8
Deferral Agreement..........................................................................................................
2
2.9
Deferred Compensation....................................................................................................
2
2.10
Designated Roth Account.................................................................................................
2
2.11
Effective Date...................................................................................................................
2
2.12
Employee..........................................................................................................................2
2.13
Entry Date........................................................................................................................
3
2.14
Includible Compensation..................................................................................................
3
2.15
Matching Contribution.....................................................................................................3
2.16
Normal Retirement Age...................................................................................................
3
2.17
Participant.........................................................................................................................3
2.18
Plan...................................................................................................................................3
2.19
Plan Administrator...........................................................................................................
3
2.20
Plan Year..........................................................................................................................4
2.21
Pre -Tax Account..............................................................................................................
4
2.22
Qualified Domestic Relations Order or"QDRO............... ...............................................
4
2.23
Qualified Roth Contribution Program..............................................................................
4
2.24
Retirement Board.............................................................................................................
4
2.25
Severance from Employment...........................................................................................
4
2.26
Roth Elective Deferral......................................................................................................
4
2.27
Trust.................................................................................................................................
4
2.28
Trustee..............................................................................................................................4
2.29
USERRA..........................................................................................................................5
2.30
Valuation Date..................................................................................................................
5
ARTICLE
III -ELIGIBILITY AND PARTICIPATION..............................................................
5
3.1
Eligibility..........................................................................................................................5
3.2
Procedure for and Effect of Admission............................................................................
5
3.3
Time for Contributions to Begin......................................................................................
5
3.4
Contributions Made Promptly..........................................................................................
6
3.5
Modification of Deferral Agreement................................................................................
6
3.6
Cancellation of Deferral Agreement................................................................................
6
3.7
Leave of Absence.............................................................................................................
6
3.8
Disability..........................................................................................................................6
3.9
Deferral of Sick, Vacation, and Back Pay Under Plan .....................................................
6
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DRAFT Dated July 29, 2021
ARTICLE IV - CONTRIBUTIONS AND LIMITATIONS ...............
4.1 Employee Deferral General Limitations ...............................
42 Special Section 457 Catch-up ...............................................
4.3 Catch -Up Contributions for Individuals Age 50 and Older..
4A 401(a) Matching Contributions .............................................
4.5 Special Rules......................................._................................
4.6 Correction of Excess Deferrals .............................................
4.7 Protection of Persons Who Serve In Uniformed Service......
ARTICLE V -DISTRIBUTIONS...................................................
5.1 Benefit Distributions.........................................................
5.2 Benefit Commencement Date ...........................................
5.3 Forms of Distribution........................................................
5A Minimum Distribution Rules . ...........................................
5.5 In-service Withdrawals.....................................................
5.6 Hardship Distributions......................................................
5.7 Definition of Unforeseeable Emergency. . ...... ..............
5.8 Unforeseeable Emergency Distribution Standard .............
5.9 Distribution Necessary to Satisfy Emergency Need.........
5.10 Plan Administrator Must Determine Hardship .................
5.11 Rollover Distributions.......................................................
ARTICLE VI —ROTH PROVISIONS ............................
6.1
Roth Elective Deferrals .....................................
6.2
Separate Accounting .........................................
6.3
Direct Rollovers ................................................
6.4
Loans from Designated Roth Accounts ............
ARTICLE VII - DEATH BENEFITS ...............................
7.1 Form and Amount of Death Benefits .................
7.2 Beneficiary Designation .....................................
.......................................... 14
.......................................... 14
.......................................... 14
.......................................... 14
.......................................... 15
........................................... 15
........................................... 15
........................................... 16
ARTICLE V1II—QUALIFIED DOMESTIC RELATIONS ORDERS ........................................ 17
8.1 Qualified Domestic Relations Orders............................................................................ 17
ARTICLE IX —PLAN LOANS....................................................................................
9.1
Loans..............................................................................................................
92
Maximum Amount of Loan............................................................................
9.3
Terms of the Loan..........................................................................................
9.4
Security for Loan; Default..............................................._.............................
9.5
Repayment......................................................................................................
18
18
18
18
19
20
ARTICLE X — TRANSFERS AMONG PLANS OF THE COUNTY; ROLLOVERS INTO THE
PLAN............................................................................................................................................ 20
10.1 Incoming Transfers........................................................................................................ 20
10.2 Rollovers........................................................................................................................20
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DRAFT Dated July 29, 2021
ARTICLEX I - TRUST................................................................................................................
21
11.1 General...........................................................................................................................21
11.2 Custodial Accounts and Annuity Contracts...................................................................
21
11.3 Trustee Powers...............................................................................................................
21
ARTICLE XII - INVESTMENT POWERS................................................................................
22
12.1 Investment Powers.........................................................................................................
22
12.2 Self Directed Investments. .. .................. ........................................................................
22
12.3 Investment Manager.......................................................................................................
23
12.4 Statutory Authorities......................................................................................................
23
ARTICLE X I I1- PLAN ADMINISTRATOR POWER AND DUTIES ..................................... 23
13.1 Duties and Responsibilities............................................................................................ 23
13.2 Binding Action............................................................................................................... 24
13.3 Cost.................................................................................................................................24
ARTICLE XIV - PLAN ADMINISTRATION...........................................................................
24
14.1
Non-Assignability..........................................................................................................24
14.2
IRS Levy........................................................................................................................
24
14.3
Payments to Minors and Incompetents..........................................................................
25
14.4
Procedure When Distributee Cannot Be Located . ............... ..........................................
25
14.5
Tax Benefits. . ..................................... ...........................................................................
25
14.6
Rights of Participants.....................................................................................................
25
14.7
Tennination or Amendment. ............................................ .............................................
25
14.8
Conformity with Internal Revenue Code Section 457...................................................
25
14.9
Employment...................................................................................................................26
14.10
Construction...................................................................................................................26
14.11
Binding Contract............................................................................................................
26
14.12
Plan Expenses.................................................................................................................
26
14.13
Right to Suspend Benefits and Correct Errors...............................................................
26
14.14
Reliance on Electronic Instructions, Directions, Signatures, Contracts and Records....
27
14.15
Communications from Participants................................................................................
27
14.16
Communications to Participants.....................................................................................
27
14.17
Time Periods..................................................................................................................
28
14.18
Reliance on Data and Consents......................................................................................
28
14.19
Tax Consequences..........................................................................................................
28
14.20
Withholding; Payroll Taxes...........................................................................................
28
14.21
Equal Access to Benefits, Rights and Features..............................................................
28
14.22
Entire Agreement...........................................................................................................
29
14.23
Claims Procedures..........................................................................................................
29
14.24
Claim Review Procedure................................................................................................
30
ARTICLE XV - SIGNATURES....
... 32
iii
DRAFT Dated -July 29, 2021
457(h) DEFERRED COMPENSATION PLAN
Oakland County (the "Employer") hereby amends and restates the
Oakland County 457(b) Deferred Compensation Plan (the "Plan") effective as of the
1st day of January, 2020, unless an earlier date is provided herein.
ARTICLE I - INTRODUCTION
It is intended that this Plan and any related Trust Agreement be interpreted and
construed as a plan designed to constitute a governmental unit eligible deferred
compensation plan within the meaning of section 457(b) of the Internal Revenue Code of
1986, as amended, the regulations issued thereunder and other applicable law.
The purpose of the Plan is to attract and hold certain Employees and other parties
related to the Employer and permit eligible Employees to enter into agreements with the
Employer which will provide for payments upon retirement, termination or death.
ARTICLE I I —DEFINITIONS
The following terms when used herein shall have the following meanings:
2.1 Account shall mean the bookkeeping account maintained with respect to each
Participant which reflects the value of the Deferred Compensation credited to the
Participant, the earnings or loss of the Trust (net of Trust expenses) allocable to
the Participant, any transfers for the Participant's benefit, and any distributions
made to the Participant, Participant's Beneficiary, or Alternate Payee. If a
Participant has more than one (1) Beneficiary at the time of the Participant's
death, then a separate Account shall be maintained for each Beneficiary. A
Participant's Account shall include any accounts established under Article X.
2.2 Alternate Payee means a person who is or was the spouse of the Participant or is
the child of the Participant to the extent that such person has rights under a court
order that the Plan Administrator has determined to be a Qualified Domestic
Relations Order as described in Treas. Reg. Section 1.457-10(c), or any successor
regulation or guidance.
2.3 Beneficiary shall mean the person or persons designated by the Participant in
accordance with Section 6.2 to receive distributions from the Participant's
Account after the Participant's death.
2.4 Code means the Internal Revenue Code of 1986, as amended. Reference to a
specific Code section shall include such section, any valid Treasury Regulation
promulgated thereunder, and any comparable provision of any future legislation
amending supplementing or superseding such section.
I
DRAFT Dated July 29, 2021
2.5 Compensation means all compensation for services to the Employer, including
salary, wages, fees, commissions, bonuses, and overtime pay, that is includible in
the Employee's gross income for the calendar year.
2.6 Contributions mean Employee Contributions and (if any) Employer contributions
deferred under the Plan according to the provisions of the Plan. Contributions
shall not be reduced because of the Participant's attainment of any age.
Contributions shall be made according to the payroll methods of, and at such
times as may be determined by, the Employer.
2.7 County shall mean Oakland County, Michigan.
2.8 Deferral Amement means an agreement entered into between an Employee and
the County, as may be amended or modified from time to time, that specifies the
amount of Deferred Compensation, specifies a preference among the investment
options provided under the Plan, names the Employee's Beneficiary or
Beneficiaries, and incorporates the terms, conditions, and provisions of the Plan
by reference.
2.9 Deferred Comnensation means the amount of Compensation otherwise payable to
the Participant that the Participant and the Employer agree to defer according to
the provisions of the Plan and any other amount which the Employer agrees to
credit to a Participant's Account. The amount or value of the Participant's
Deferred Compensation is the amount or value of the Participant's Account
(including any rights purchased under the Account). Deferred Compensation may
also refer to the right under this Plan of the Participant or Beneficiary to receive a
Distribution of all or any portion of the Account.
2.10 Designated Roth Account shall mean the bookkeeping account established and
maintained to record the Participant's Roth Elected Deferrals, rollovers from
designated Roth account(s) under other eligible retirement plans, and the income
gains and losses thereon. Unless specifically stated otherwise, all references in
the Plan to a Participant's Account shall includ a Participant's Designated Roth
Account.
2.11 Effective Date for this restatement means the date that the County Board of
Commissioners adopted this restatement unless otherwise indicated herein. The
original effective date of the Plan was April 5, 1979.
2.12 Employee shall mean a natural person characterized by the Plan Administrator, in
its sole and absolute discretion, as a "full-time eligible Employee" or "part-time
eligible Employee" as such is defined in the County's Merit System Rules.
Employee shall include natural persons who are covered by a collective
bargaining agreement. Employee shall not include part-time non -eligible or leased
employees (as defined by Code Section 414(n)), or individuals determined by the
2
DRAFT Dated July 29, 2021
County considering Internal Revenue Service and Department of Labor guidelines
for defining independent contractors, and as may be amended and/or modified
from time to time) even if such individuals are subsequently deemed to be the
County's common law employees. Also, Employee shall not include Circuit
Court, District Court, and Probate Court Judges first elected or appointed on or
after April 1, 1997.
2.13 Entry Date shall mean for each individual the date that such individual is
characterized by the Plan Administrator as an Employee.
2.14 Includible Compensation means an Employee's actual wages that are reported in
box 1 of Form W-2 for a year for services to the Employer, but subject to a
maximum of $200,000 (or such higher maximum as may apply under section
40t(a)(17) of the Code), as adjusted thereunder from time to time, and increased
(up to the dollar maximum) by any compensation reduction election under
Section 125, 132(f), 401(k), 403(b), or 457(b) of the Code.
2.15 Matching Contribution shall mean a voluntary contribution made by the County
on behalf of a Participant; as a result of the Participant's contribution into his or
her account maintained under this Plan.
2.16 Normal Retirement Age shall mean any age the Participant declares his/her
Normal Retirement Age in writing with the Plan Administrator prior to his/her
Severance from Employment; however, the Participant must at least reach age 55
with 25 years of service or age 60 with 8 years of service. Some represented
Employees' bargaining agreements may include a different definition of Normal
Retirement Age. Under no circumstances shall a Participant's Normal Retirement
Age under this 457(b) Plan be later than the age of 72 , and/or as modified by IRS
regulations. Participants may only make one election to declare their Normal
Retirement Age with the Plan Administrator, and any election made by a
Participant applies with respect to all 457(b) plans sponsored by the County.
2.17 Participant shall mean an Employee who is currently deferring Compensation, or
who has previously deferred Compensation to the Plan by salary reduction and
who has not received a distribution of his or her entire benefit under the Plan.
2.18 Plan shall mean this 457(b) Deferred Compensation Plan for Oakland County, as
such may be amended from time to time.
2.19 Plan Administrator shall be the individual holding the position of Retirement
Administrator, or in his or her absence, the Manager of Human Resources, or as
appropriately appointed by the County in accordance with the County's policies
and protocols.
3
DRAFT Dated July 29, 2021
2.20 Plan Year means the 12-month period commencing January 1 and ending
December 31.
221 Pre -Tax Account shall mean the bookkeeping account established and maintained
to record the portion of the Participant's Account attributable to amounts other than
Roth Elective Deferrals, rollovers from designated Roth account(s) under other
eligible retirement plans, and the income gains and losses thereon. Unless
specifically stated otherwise, all references in the Plan to a Participant's Account
shall include a Participant's Pre -Tax Account.
2.22 Oualified Domestic Relations Order or "ODRO" means any judgment, decree or
order as defined in Code Section 414(p).
2.23 Oualified Roth Contribution Profram means a program described in paragraph (1)
of Code Section 402A(b), under which a Participant may make Roth Elective
Deferrals in lieu of all or a portion of the elective deferrals the Participant is
otherwise eligible to make under the Plan.
2.24 Retirement Board shall mean the Oakland County Retirement and Deferred
Compensation Board.
2.25 Severance from Employment means a voluntary or involuntary termination of
employment or expiration of all contractual relationships with the County for any
reason including death or disability, or for no reason. For purposes of the
foregoing sentence, an approved leave of absence by an Employee shall not
constitute a Severance from Employment.
2.26 Roth Elective Deferral means deferred Includible Compensation contributed by a
Participant pursuant to Section 6.1, which amounts are:
(1) irrevocably designated by the Participant as a Roth Elective Deferral that is
being made in lieu of all or a portion of the pre-tax deferrals the Participant is
otherwise eligible to make under the Plan; and
(2) treated by the County as includible in the Participant's income at the time the
Participant otherwise would have received that amount as Includible
Compensation.
2.27 Trust shall mean all of the assets of the Plan held in trust pursuant to the terms of
this Plan or any separate written agreement made by and between the County and
the Trustee under which the Trust is maintained.
2.28 Trustee shall mean effective March 23, 2018, the Oakland County Retirement and
Deferred Compensation Board.
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DRAFT Dated July 29, 2021
2.29 USERRA means the Uniformed Services Employment and Reemployment Rights
Act of 1994, as amended (Public Law No. 103-353).
2.30 Valuation Date shall mean the date provided for valuing Plan Accounts as
specified by the Trustee.
ARTICLE III —ELIGIBILITY AND PARTICIPATION
3.1 Eligibility. All Eeligible Employees can participate in the Plan by completing,
executing, and delivering a Deferral Agreement and all other instruments and
forms required by the Plan Administrator. Each present Participant shall continue
to be a Participant in the Plan. Any other Employee who is classified as an
eligible Employee as of the Effective Date shall be eligible to participate in the
Plan on lire Effective Date. Any Employee who is not eligible to participate in the
Plan as of the Effective Date shall be eligible to participate in the Plan upon
classification as an eligible Employee.
3.2 Procedure for and Effect of Admission. Any eligible Employee who elects to
become a Participant shall complete a Deferral Agreement by written or other
means as prescribed by the Plan Administrator. The Plan Administrator reserves
the right to reject any Deferral Agreement which does not conform with uniform,
non-discriminatory procedures it shall prescribe and advise the E-eligible
Employee of the appropriate method of correction. By becoming a Participant,
such eligible Employee shall for all purposes be deemed to have assented to the
terms and provisions of this Plan and to all amendments thereto.
The Plan Administrator may establish a minimum deferral amount, and may
change such minimums from time to time. The participation election shall also
include designation of investment funds and a designation of Beneficiary. Any
such election shall remain in effect until a new election is filed. When entering
into or amending his or her Deferral Agreement, the Participant trust agree to
defer not more than the maximum amount provided by Article IV.
3.3 Time for Contributions to Begin. Contributions will be deferred for any calendar
month only if a Deferral Agreement providing for the deferral has been entered
into before the beginning of the month, with the first of such contributions being
made as soon as administratively feasible thereafter. IIowever, for a new
employee, Compensation may be deferred for the calendar month during which
the Participant first becomes an Employee if a Deferral Agreement providing for
the deferral is entered into on or before the first day on which he or she performs
services for the Employer, and the first of such contributions will be made as soon
as administratively feasible after the Employee receives his or her first paycheck.
5
DRAEiT Dated July 29, 2021
3.4 Contributions Made Promptly. Deferred Compensation by a Participant under the
Plan shall be transferred to the Trust within a period that is not longer than is
reasonable for the proper administration of the Participant's Account.
3.5 Modification of Deferral Agreement. Subject to the other provisions of the Plan
and the Plan Administrator's discretion, a Participant may increase his or her
Deferred Compensation at any time in the month prior to the effective date of the
revised Deferral Agreement. A Participant may elect to decrease his or her
Deferred Compensation effective immediately following execution of a revised
Deferral Agreement indicating the corresponding decrease in Deferred
Compensation.
3.6 Cancellation of Deferral Agreement. In accordance with procedures established
by the Plan Administrator, a Participant may cancel his or her Deferral Agreement
at any time. The cancellation shall he effective as soon as administratively
feeasible after the Employee notifies the Plan Administrator of his or her election
to cancel the Deferral Agreement.
3.7 Leave of Absence. Unless a Deferral Agreement is otherwise revised, if a
Participant is absent from work by leave of absence, his or her Contributions shall
continue to the extent that he or she continues to receive Compensation from the
County.
3.8 Disability. A disabled Participant may makeContributions during any portion of
the period of his or her disability to the extent that he or she has actual
Compensation (not imputed compensation and not disability benefits) from which
to make Contributions and has not had a Severance from Employment.
3.9 Deferral of Sick, Vacation, and Back Pav Under Plan. A Participant may elect to
defer accumulated sick pay, accumulated vacation pay, and back pay under the
Plan, provided that these amounts may be deferred for any calendar month only if
an agreement providing for the deferral is entered into before the beginning of the
month in which the amounts would otherwise be paid or made available and the
Participant is an eligible Employee in that month.
DRAFT Dated July 29, 2021
ARTICLE IV — CONTRIBUTIONS AND LIMITATIONS
4.1 Emolovee Deferral General Limitations. Except as provided in section 4.2, the
maximum Deferred Compensation amount under the Plan for any Participant for
the taxable year shall not exceed the lesser of (i) the applicable dollar amount
within the meaning of Code Sections 457(b)(2)(A) and 457(e)(l5)(A) as adjusted
for the cost -of -living in accordance with Code Section 457(e)(15)(B) for such
taxable year; or (ii) 100% of the Participant's Includible Compensation for such
taxable year.
4.2 Special Section 457 Catch-up. Notwithstanding any provision in Section 4.1 to
the contrary, with respect to any one or more of the three (3) taxable years ending
before the date of the Participant's Normal Retirement Age, a Participant may
elect to have Deferred Compensation contributed to the Plan in an amount not to
exceed the lesser of:
(a) Twice the dollar amount in effect for such taxable year under Code
Section 457(e)(15), or
(b) The amount of the Participant's "Underutilized Limitation" for the
Participant's taxable year, as determined pursuant to Treas. Reg. Section
1.457-4(c)(3)(ii) and any successor regulations or guidance of similar
import.
A Participant may elect to apply the 457(b) catch-up limitation under the Plan
only once, regardless of whether the full amount of the limitation is utilized or
whether the limitation is utilized for all three years.
4.3 Catch -Up Contributions for Individuals Aee 50 and Older. Any Participant who
is projected to attain age 50 before the end of a calendar year (or such other date
as the Treasury Department may require by regulations) may elect to have
additional Deferred Compensation contributed to the Plan in an amount not to
exceed the catch-up limit under Code Section 414(v) for the taxable year.
Notwithstanding the foregoing, this paragraph shall not apply for any taxable year
for which a higher limitation under the special Section 457 catch-up described in
Section 4.2 applies to such Participant, to the extent required by applicable statute
or regulations.
4.4 401(a) Matchlne Contributions. Annually, the County shall decide, in its sole
discretion, whether sufficient funds exist to make Matching Contributions into a
separate 401(a) match account of each eligible Employee, with such Matching
Contribution not to exceed the general limitation described in Section 4.1 and the
457(b) catch-up limitations described in Section 4.2. The County shall have
exclusive discretion to decide whether sufficient funds exist to make a Matching
7
DRAFT Dated July 29, 2021
Contribution in any given year. If the County determines that sufficient funds do
exist, the Matching Contribution shall be at the rate established by the County for
non -represented employees, and for represented employees at a rate established in
the bargaining agreement between the County and the Union representing the
respective employees. Any such Matching Contributions shall be credited to the
appropriate Participants' 401(a) match source maintained under the County's
401(a) Plan. The County may make Matching Contributions at any time
permitted by law and regulation. In addition, the County shall also have the
ability, subject to the general limitation described in Section 4.1 and the 457(b)
catch-up limitations described in Section 4.2, to make voluntary discretionary
contributions, in any amount it determines, into Participants' Accounts
maintained under this Plan.
4.5 Special Rules. For purpose of this Article 4, the following rules shall apply:
(a) Participants covered by snore than one (1) eligible 457(b) plan. If a
Participant is or has been a participant in one (1) or more other eligible
457(b) plans (as defined by Code Section 457(b)), then this Plan and all
such other 457(b) plans shall be considered as one (1) plan for purposes of
applying the foregoing limitations of this Article 4. For this propose, the
Plan Administrator shall take into account any other such eligible plans
maintained by the County and shall also take into account any other such
eligible plans for which the Plan Administrator receives from the
Participant sufficient information concerning his or her participation in
such other plan.
(b) Pre -Participation Years. In applying Section 4.2, a year shall be taken
into account only if (i) the Participant was eligible to participate in the
Plan during all or a portion of the year; and (ii) Compensation deferred, if
any, under the Plan during the year was subject to the limitations
described in Section 4.1 or any other Plan limit required by Code section
457(b).
(c) Pre-2002 Coordination Years. For purposes of Section 4 2(b),
"contributions to Pre-2002 Coordination Plans" shall mean any employer
contribution, salary reduction or elective contribution under any Code
section 401(k) qualified cash or deferred arrangement, Code section
402(h)(1)(B) simplified employee pension (SARSEP), Code section
403(b) annuity contract, and Code section 408(p) simple retirement
account, or under any plan for which a deduction is allowed because of a
contribution to an organization described in Code section 501(c)(18),
including plans, arrangements or accounts maintained by the County or
any employer for whom the Participant performed services. However, the
contributions for any calendar year are only taken into account for
8
DRAFT Dated July 29, 2021
purposes of Section 4.2(b) to the extent that the total of such contributions
does not exceed the aggregate limit referred to in Code section 457(b)(2)
for that year. In applying the section 457(b)(2)(B) limitation for includible
compensation for years prior to 2002, the limitation is 33% of the
Participant's compensation includible in gross income.
(d) Disregard Excess Deferral. For purposes of Sections 4.1, 4.2 and 4.3, an
individual is treated as not having deferred compensation under a plan for
a prior taxable year to the extent excess deferrals under the plan are
distributed, as described in Section 4.6. To the extent that the combined
deferrals for pre-2002 years exceeded the maximum deferral limitations,
the amount is treated as an excess deferral.
4.6 Correction of Excess Deferrals. If the Deferred Compensation on behalf of a
Participant for any calendar year exceeds the limitations described in Sections 4.1,
4.2 and 4.3, or the Deferred Compensation on behalf of a Participant for any
calendar year exceeds the limitations described above when combined with other
amounts deferred by the Participant under another eligible deferred compensation
plan under Code Section 457(b) for which the Participant provides information
that is accepted by the Plan Administrator, then the Deferred Compensation, to
the extent in excess of the applicable limitation adjusted for any income or loss in
value, if any, allocable thereto, shall be distributed to the Participant.
4.7 Protection of Persons Who Serve In Uniformed Service. A Participant whose
employment with the County is interrupted by qualified military service under
Code Section 414(u) or who is on a leave of absence for qualified military service
under Code Section 414(u) may elect to have additional Deferred Compensation
made upon the resumption of employment with the County equal to the maximum
Deferred Compensation that the Participant could have elected during that period
if the Participant's employment with the County had continued (at the same level
of Compensation) without interruption or leave, reduced by Deferred
Compensation, if any, actually made for the Participant during the period of
qualified military service. This right applies for five (5) years following the
resumption of employment (or, if sooner, for a period equal to three (3) times the
period of the interruption or leave).
ARTICLE V —DISTRIBUTIONS
5.1 Benefit Distributions. Upon a bona fide Severance from Employment with the
County, a Participant shall be entitled to receive a distribution of his or her
Account balance under a form of distribution permitted under Section 5.3, and
such distribution shall commence at the date provided in Section 5.2. A
Participant on a leave of absence shall not be deemed to have had a Severance
from Employment until the leave of absence expires and the Participant separates
from employment with the County.
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5.2 Benefit Commencement Date. In accordance with and subject to Code Section
401(a) (9) and Section 5.4, a Participant (or his or her Beneficiary) after a bona
fide Severance from Employment with the County shall be permitted to elect to
receive a distribution from his or her Account. The election shall be made in
accordance with procedures established by the Plan Administrator. Actual
distributions shall be made as soon as administratively practicable after a
Participant's proper election.
5.3 Forms of Distribution. In coordination with an election to commence benefits
under Section 5.2, a Participant (or Beneficiary) shall elect to receive payment in
one of the following distribution forms:
(a) lump sum payment;
(b) installment payments; or
(c) any other option permitted by the Plan Administrator, in its sole and
absolute discretion.
5.4 Minimum Distribution Rules.
(a) General Rules.
(1) The entire interest of the Participant will be distributed, or
commence to be distributed, not later than April 1 following the later of the
calendar year in which the Participant attains age 72 years or the calendar year in
which the Participant retires; (referred to herein as the "Required Beginning
Date)."
(b) Limitation of Distribution.
(1) Notwithstanding any other provision of the Plan, distributions shall
be made in a form under which:
(i) The amount distributed each year, commencing with the Required
Beginning Date, must be at least the level amount determined by applying
the Participant's entire interest to the purchase of an annuity contract
commencing payments at least annually on or before the Required
Beginning Date;
(ii) if provision is made for the payment of a portion of the benefits to
a Beneficiary, the amount payable to the Participant will be paid at times
specified by the Secretary of the Treasury, which are not later than the
times determine under regulations issued pursuant to section 401(a)(9)(G)
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of the Code pertaining to the minimum distribution incidental benefit
requirements; and
(iii) any amount not distributed to the Participant during his or her life
will be distributed after the death of the Participant, at least as rapidly as
the method being used as of the date of death.
(2) If distribution first commences after the Participant's death, the
Participant's entire interest must be distributed over a period not to exceed (i) the
Beneficiary's life or life expectancy, if the Beneficiary is the Participant's
surviving spouse and if distributions commence on or before the date the deceased
Participant would have attained age 70 '/2 years, (ii) the life expectancy of the
Beneficiary, if the Beneficiary is not the Participant's surviving spouse and if
distributions commence within one (1) year of the date of the Participant's death
in equal or substantially equal payments, or (iii) the lesser of five (5) years from
the date of the Participant's death or the Beneficiary's life expectancy, if
subsection (b)(i) and (ii) of this paragraph are inapplicable. For purposes of this
subsection, any amount paid to a child of the Participant will be treated as if it had
been paid to the surviving spouse if the remainder of the interest becomes payable
to the surviving spouse when the child reaches the age of majority.
(3) The Plan will apply the minimum distribution requirements of
Code Section 401(a)(9) pursuant to Treasury Regulations section 1.401(a)(9)-1
through 1.401(a)(9)-6,. Thereafter, distributions under the Plan shall be made in
accordance with the requirements of section 401(a) (9) of the Code, including the
incidental death benefits requirement of section 401(a) (9), and Treasury
Regulations Sections 1.401(a) (9)-1 through 1.401(a) (9)-9, and such Code and
Treasury Regulation provisions shall override any distribution options under the
Plan that are inconsistent with such provisions. For purposes of this section, life
expectancies will be computed by use of the expected return multiples as
published in the applicable Treasury Regulations, using the calculation methods
required therein, and as described in the applicable regulations under section
401(a)(9) of the Code.
5.5 In-service Withdrawals. A Participant who (1) has attained age 59'/2 and (2)
ceases to be an eligible Employee as defined at Section 2.12 herein, may elect to
take an in-service withdrawal of all or a portion of his or her Account balance.
Any such withdrawal shall be made in accordance with the Plan's established
procedures.
5.6 Hardshin Distributions. If, before his or her Severance from Employment, the
Participant has an unforeseeable emergency that is approved by the Plan
Administrator as satisfying Section 5.7, the Participant (but not a Beneficiary or
Alternate Payee) is entitled to receive a hardship Distribution (as a cash lump
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DRAFT Dated July 29, 2021
sum) of the amount determined by the Plan Administrator to be the amount that is
reasonably needed to satisfy the emergency need.
5.7 Definition of Unforeseeable Emereenev. An unforeseeable emergency means a
severe financial hardship of the Participant resulting from:
(a) An illness or accident of the Participant or his Spouse or dependent (as
defined in section 152(a) of the Code);
(b) Loss of the Participant's or Beneficiary's property due to casualty; or
(c) Other similar extraordinary and unforeseeable circumstances arising as a
result of events beyond the control of the Participant or Beneficiary. The
imminent foreclosure of or eviction from the Participant's primary
residence, the need to pay for medical expenses, including non-refundable
deductibles, as well as for the cost of prescription drug medication or the
need to pay for the funeral expenses of a spouse or dependent may
constitute an unforeseeable emergency. Except in extraordinary
circumstances, the purchase of a home and the payment of college tuition
are not unforeseeable emergencies under this section.
5.8 Unforeseeable Emeraencv Distribution Standard. Whether a Participant or
Beneficiary is faced with an unforeseeable emergency, as defined in Section 5.7,
permitting a Distribution under this Article V is to be determined based on the
relevant facts and circumstances of each case, but, in any case, a Distribution on
account of unforeseeable emergency may not be made to the extent that such
emergency is or may be relieved through reimbursement or compensation from
insurance or otherwise; by liquidation of the Participant's assets, to the extent the
liquidation of such assets would not itself cause severe financial hardship; or by
cessation of deferrals under the Plan.
5.9 Distribution Necessary to Satisfv Erneraencv Need. Distributions because of an
unforeseeable emergency must be limited to the amount reasonably necessary to
satisfy the emergency need (which may include any amounts necessary to pay any
federal, state, or local income taxes or penalties reasonably anticipated to result
from the Distribution).
5.10 Plan Administrator Must Determine Hardship. The Plan Administrator must
determine whether the circumstances of the Participant constitute an
unforeseeable emergency within the meaning of Section 5.7. Following a
uniform procedure, the Plan Administrator's determination shall consider any
facts or conditions deemed necessary or advisable by the Plan Administrator, and
the Participant shall be required to submit any evidence of his circumstances that
the Plan Administrator requires. The determination as to whether the Participant's
circumstances are a case of hardship shall be based on the facts of each case;
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provided, however, that all determinations as to hardship shall be uniformly and
consistently made according to the provisions of the Plan for all Participants in
similar circumstances. The Plan Administrator may require that any statement
made as part of a claim for a hardship Distribution be made under penalties of
perjury. The Plan Administrator may (but need not) require that any statement
made as part of a claim for a hardship Distribution be signed in the presence of a
notary public.
5.41 Rollover Distributions.
(a) A Participant or the surviving spouse of a Participant (or a Participant's
former spouse who is an Alternate Payee under a Qualified Domestic
Relations Order) who is entitled to an eligible rollover distribution may
elect, at the time and in the manner prescribed in the sole and absolute
discretion of the Plan Administrator, to have all or any portion of the
distribution paid directly to an eligible retirement plan specified by the
Participant in a direct rollover. The Plan Administrator may require any
documentation that it deems necessary to effectuate the rollover.
(b) Distributions to Inherited Individual Retirement Plan of Nonspouse
Beneficiary. With respect to any portion of a distribution made after
December 31, 2009 to an individual who is the designated beneficiary (as
defined by Code Section 40 1 (a)(9)(13)) of a deceased Participant and who
is not the surviving spouse of the deceased Participant, if a direct rollover
is made to an individual retirement plan (as defined in Code Section
402(c)(8)(13)(i) and (ii)) of the non -spouse designated beneficiary, such
individual retirement plan shall be treated as an inherited individual
retirement account or inherited individual retirement annuity, pursuant to
Code Section 401(c)(11).
(c) For purposes of this Section 5.11, an eligible rollover distribution means
any distribution of all or any portion of a Participant's Account, except
that an eligible rollover distribution does not include (i) any installment
payment under Section 5.3 for a period of over ten (10) years or more; (d)
any distribution made under Section 5.6 as a result of an unforeseeable
emergency; or (iii) for any other distribution, if any of the distribution is a
required minimum distribution under Code section 401(a)(9). An eligible
retirement plan means an individual retirement account described in Code
section 408(a), an individual retirement annuity described in Code section
408(b), a qualified trust described in Code section 401(a), an annuity plan
described in Code sections 403(a) or 403(b), or an eligible governmental
plan described in Code section 457(b), that accepts eligible rollover
distributions.
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(d) Upon the transfer of assets pursuant to this Section 5.11, the Plan's
liability to pay benefits to the Participant or Beneficiary under the Plan
shall be discharged to the extent of the amount transferred on behalf of the
Participant or Beneficiary. The Plan Administrator may require such
documentation from the receiving plan as it deems appropriate or
necessary to effectuate the transfer.
ARTICLE VI —ROTH PROVISIONS
6.1 Roth Elective Deferrals.
(a) As of the effective date of the County's election to offer Designated Roth
Accounts under the Plan, a Participant shall be permitted to make Roth
Elective Deferrals of Includible Compensation in such amount or
percentage as may be specified by the Participant in his or her Deferral
Agreement.
(b) Unless specifically stated otherwise, a Paricipant's Roth Elective Deferrals
will be treated as Deferred Compensation for all purposes under thie Plan
and will be allocated to a separate Designated Roth Account maintained
for such deferrals as defined herein.
6.2 Separate Accounting.
(a) Contributions and withdrawals of Roth Elective Deferrals and rollovers
from a designated Roth account under another eligible retirement plan will
be credited and debited to a Participant's Designated Roth Account.
(b) The Plan will maintain a record of the amount of Roth Elective Deferrals
and rollovers from a designated Roth account under another eligible
retirement plan in each Participant's Designated Roth Account.
(c) Gains, losses, and other credits or charges must be separately allocated on
a consistent basis to each Participant's Designated Roth Account and Pre -
Tax Account under the Plan.
(d) No Contributions other than Roth Elective Deferrals and rollovers from a
designated Roth account under another eligible retirement plan and
properly attributable earnings thereon will be credited to each Participant's
Designated Roth Account.
6.3 Direct Rollovers.
(a) Notwithstanding anything to the contrary in the Plan, a direct rollover of a
distribution from a Designated Roth Account under the Plan shall be made
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only to another designated Roth account under an eligible retirement plan
described in Code Section 402A(e)(1) or to a Roth IRA described in Code
Section 408A, and only to the extent that the rollover is permitted under
the rules of Section 402(c) of the Code.
(b) Unless otherwise specified herein, the Plan will accept a rollover
contribution to a Designated Roth Account only if it is a direct rollover
from another designated Roth account under an eligible retirement plan
described in Section 402A(e)(1) of the Code.
(c) Eligible rollover distributions from a Participant's Designated Roth
Account are taken into account in determining whether the total amount of
the Participant's Account balance under the Plan exceeds $1,000 for
purposes of mandatory distributions from the Plan.
6.4 Loans from Designated Roth Accounts. A Participant's Designated Roth Account
balance can be included to determine a Participant loan amount under Article IX.
However, unless otherwise specified, Designated Roth Account funds will not be
available as a source for loans under the Plan.
ARTICLE VII DEATH BENEFITS
7.1 Form and Amount of Death Benefits. Upon the death of a Participant, death
benefits shall be payable as follows:
(a) Death Prior to Benefit Commencement Date. If a Participant's death
occurs before his or her benefit commencement date, his or her
Beneficiary shall elect a benefit commencement date that is no later than
the later of (i) December 31 of the year following the year of the
Participant's death if distributions are to be made in installments, (ii) for
non -installment distributions, the December 31 of the fifth year following
the year of the Participant's death or (iii) if the Beneficiary is the
Participant's spouse, December 31 of the year in which the Participant
would have attained age 70Yz. A Beneficiary may elect to receive
distribution in a single lump sum, in installments based on life expectancy,
or as a rollover distribution in accordance with Section 5.11, provided,
however, that a method of distribution must satisfy the requirements of
Code Sections 401(a)(9) and 457(d)(2) and applicable Treasury
Regulations thereunder. In the event that the Participant's estate is the
Beneficiary, payment shall be made to the estate in a lump sum. If the
Beneficiary survives the Participant but dies before the payment of death
benefits has commenced or been completed, the remaining balance of the
Account shall be paid to the beneficiary designated by the Beneficiary,
and if no such beneficiary was designated, then to the Beneficiary's estate.
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Any payment under this paragraph shall be made in a manner consistent
with such procedures adopted by the Plan Administrator.
(b) Death After Benefit Commencement Date. If a Participant's death occurs
after lie/she has begun to receive benefits under a benefit payment option,
the remaining payments, if any, shall be payable to the Participant's
Beneficiary in a single lump sum or as a rollover distribution in
accordance with Section 5.11, with such payment being made as soon as
administratively practicable following the Participant's death. In no event
shall the County or Plan Administrator be liable to the Beneficiary for the
amount of any payment made in the name of the Participant before the
Plan Administrator receives proof of death of the Participant. If the
Beneficiary dies before completion of such payments, the remaining
balance of the Account shall be paid to the beneficiary designated by the
Beneficiary, and if no such beneficiary was designated, then to the
Beneficiary's estate. Any payment under this paragraph shall be made in
a manner consistent with such procedures adopted by the Plan
Administrator.
7.2 Benefciary Des4mation.
(a) ha General. The Participant shall file with the Plan Administrator a
designation of primary and contingent Beneficiary which shall indicate the
person or persons who shall receive benefits payable under this Plan upon
the Participant's death. In the case of multiple Beneficiaries, unless
otherwise provided in the Beneficiary designation form, each designated
Beneficiary who survives the Participant shall be entitled to an equal share
of the benefit payable after the Participant's death. The Participant accepts
and acknowledges the burden for executing and filing a proper Beneficiary
designation with the Plan Administrator.
(b) Change in Beneficiary Designation. Any change in Beneficiary
designation shall become effective only upon receipt of the form by the
Plan Administrator whether or not the Participant is living at the time of
such receipt. Any change of Beneficiary designation filed in proper form
with the Plan Administrator shall revoke all prior Beneficiary
designations.
(c) Adequacv of Beneficiary Designatiura. The Plan Administrator shall
detennine the acceptability of a Beneficiary designation or change of
Beneficiary designation. The Plan Administrator shall notify the
Participant if the Beneficiary designation is not acceptable and inform the
Participant of the method of correction. A corrected Beneficiary
designation shall be effective as of the date on which the Participant first
attempts to designate such individual.
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(d) Death Without Benefciaiv Designation. If the Participant fails to
designate a Beneficiary or if every Beneficiary designated by the
Participant has predeceased the Participant, the Participant's default
beneficiary will be (a) the Participant's surviving spouse, if any, or (b) if
there is no surviving spouse, the Participant's estate.
(e) Presumption that a Designation is Revoked by Divorce. In the event of a
divorce, it is presumed that the Participant intended to revoke any
designation of his divorced spouse as the Participant's designated
Beneficiary, unless
(i) The Judgment of Divorce affirmatively states that the divorced
spouse will remain the designated Beneficiary, or
(ii) A Qualified Domestic Relations Order affirmatively states that the
divorced spouse will remain the designated Beneficiary, or
(iii) The Participant completes a new designation of Beneficiary after
entry of the Judgment of Divorce, which names the divorced
spouse as the Participant's designated Beneficiary.
ARTICLE VIII — QUALIFIED DOMESTIC RELATIONS ORDERS
8.1 Oualified Domestic Relations Orders. The County and the Plan Administrator
shall comply with any "Qualified Domestic Relations Order" as defined in Code
Section 414(p) (a "QDRO"), including an order requiring the distribution of a
Participant's benefits to an Alternate Payee in advance of the general rules for
distributions set forth herein. To the extent required in a QDRO, any portion of a
Participant's benefits may be paid to (or a portion of a Participant's Account may
be set aside for the benefit of) the Participant's spouse, former spouse or other
Alternate Payee. Upon receipt of notification of any judgment, decree or order
which relates to the provision of child support, alimony payments, or marital
property rights of a spouse, former spouse, child, or other dependent of a
Participant and which is made pursuant to a state domestic relations and/or
community property law ("Court Order"), the Plan Administrator shall, within a
reasonable period after receipt of such Court Order, determine whether it satisfies
the requirements of a QDRO.
(a) Segregation of Account, Payment. The Plan Administrator may segregate
in a separate account in the Plan, the amounts which would be payable to
the Alternate Payee pursuant to a QDRO. Such amounts may be paid to
the Alternate Payee in advance of the general distribution rules under this
Plan.
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(b) Status, Rights and Privileges of Alternate Payees. Except as otherwise
provided herein, an Alternate Payee shall have the status and rights of a
Beneficiary under this Plan to the exclusion of all other rights associated
with Participants under this Plan, including the right to receive payment
under the terms of the QDRO at the time and manner specified in such
QDRO (provided, however, that such payment may not be made in a form
which is not available to Participants under the Plan), and the right to
direct the manner in which Plan amounts allocated to such Alternate Payee
are invested.
(c) QDRO Expenses. Any expense related to the administration of a QDRO
shall be assessed against the Participant's Account, unless otherwise
specified pursuant to the terms of a QDRO.
ARTICLE IX — PLAN LOANS
9.1 Loans. A Participant who is an active Employee of the County may apply for and
receive a loan from his or her Account as provided in this Article IX. As
determined in the sole and absolute discretion of the Plan Administrator, loans
shall not be made in an amount less than two thousand dollars ($2,000.00). A
Participant shall not be permitted to have more than two (2) loans outstanding at
any time. Loans shall be made in accordance with procedures established in the
sole and absolute discretion of the Plan Administrator.
9.2 Maximum Amount of Loan. No loan to a Participant may exceed the lesser of:
(a) $50,000, reduced by the excess in any of the outstanding balance on any loan
from the Plan to the Participant during the one-year period ending on the day
before the date the loan is made over the outstanding balance of loans from the
Plan on the date such loan was made (not taking into account any payments made
during such one-year period), or (b) the greater of (i) one half of the present value
of the Participant's Account balance (as of the Valuation Date immediately
preceding the date on which the loan is approved by the Plan Administrator), or
Gi) $10,000.00.
For purposes of this Section 9.2, any loan from any other plan maintained by the
County shall be treated as if it were a loan made from the Plan, and the
Participant's interest under any such other plan shall be considered an interest
under this Plan; provided however, that the provisions of this paragraph shall not
be applied so as to allow the amount of a loan under this Section 9.2 to exceed
the amount that would otherwise be permitted in the absence of this paragraph.
9.3 Terms of the Loan. The terms of the loan shall:
(a) require level amortization with payments not less frequently than quarterly
throughout the repayment period, except that alternative arrangements for
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repayment may apply in the event that the borrower is on a bona fide
unpaid leave of absence for a period not to exceed one (1) year for leaves
other than a qualified military leave within the meaning of Code section
414(u) or for the duration of a leave which is due to qualified military
service;
(b) require that the loan be repaid within five (5) years unless the Participant
certifies in writing to the Plan Administrator that the loan is to be used to
acquire any dwelling unit which within a reasonable period of time (as
determined in the sole and absolute discretion of the Plan Administrator)
is to be used (determined at the time the loan is made) as the principal
residence of the Participant; and
(c) provide for a reasonable rate of interest to be determined in the sole and
absolute discretion of the Plan Administrator.
9.4 Security for Loan; Default.
(a) Seeurih,. Any loan to a Participant under the Plan shall be secured by the
pledge of the portion of the Participant's interest in the Plan invested in
such loan.
(b) Default. Effective as of March 23, 2018, in the event that a Participant
fails to make a loan payment under this Article 8 by the end of the quarter
following the quarter in which such payment is due, a default on the loan
shall occur. In the event of such a default: (i) all remaining payments on
the loan shall be immediately due and payable; and (ii) the Participant
shall be permanently ineligible for any future loans from the Plan until
such time as the Participant repays the full amount of the defaulted loan
plus all accrued interest. In case of any default on a loan to a Participant,
the Plan Administrator shall apply the portion of the Participant's interest
in the Plan held as security for the loan in satisfaction of the loan on the
date of Severance from Employment with the County. In addition, the
Plan Administrator shall take any legal action it shall consider necessary
or appropriate to enforce collection of the unpaid loan, with the costs of
any legal proceeding or collection to be charged to the Account of the
Participant.
(c) Death. Notwithstanding any other provision of the Plan to the contrary, in
the event a loan is outstanding hereunder on the date of a Participant's
death, his or her estate shall be his or her Beneficiary as to the portion of
his or her interest in the Plan invested in such loan (with the Beneficiary or
Beneficiaries as to the remainder of his or her interest in the Plan to be
determined in accordance with the otherwise applicable provisions of the
Plan).
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9.5 Repavment. In the sole and absolute discretion of the Plan Administrator, a
Participant may be required, as a condition to receiving a loan, to comply with
certain arrangements prescribed by the Plan Administrator. Repayments of a loan
shall be made in equal amounts (comprised of both principal and interest) with the
first payment to be made as soon as practicable after the loan funds are disbursed;
provided however, in the sole and absolute discretion of the Plan Administrator, a
Participant may prepay the entire outstanding balance of his or her loan at any
time. Loan repayments shall be characterized as self -directed investments in
accordance with Section 12.2.
ARTICLE X — TRANSFERS AMONG PLANS OF THE COUNTY;
ROLLOVERS INTO THE PLAN
10.1 Incoming Transfers. Subject to the requirements of Code Section 457(e)(10), any
Treasury Regulations issued thereunder, and the procedures established by the
Plan Administrator, effective as of April 1, 2008 the Trust may accept a transfer
from another eligible deferred compensation plan maintained by the County and
credit such transfer to a Participant's Account under the Plan if such transfer
complies with the following rules:
(a) The County's other plan provides that such transfer will be made;
(b) The Participant whose deferred amounts are being transferred will have an
amount immediately after the transfer at least equal to the deferred amount
immediately before the transfer; and
(c) The Participant whose deferred amounts are being transferred is not
eligible for additional annual deferrals in the Plan unless the Participant is
an eligible Employee.
10.2 Rollovers. An eligible rollover distribution, excluding any portion that consists of
after-tax contributions or Roth deferrals, may be accepted from an eligible
retirement plan and credited to a Participant's Account under the Plan. The Plan
Administrator may require such documentation from the distributing plan as it
deems necessary to effectuate the rollover in accordance with Section 402 of the
Code and to confine that such plan is an eligible retirement plan within the
meaning of Section 402(c)(8)(B) of the Code. The Plan shall separately account
(in one or more separate accounts) for eligible rollover distributions from any
eligible retirement plan.
(a) Definitions:
(i) An eligible rollover distribution means any distribution of all or
any portion of a Participant's benefit under another eligible
retirement plan, except that an eligible rollover distribution does
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DRAFT Dated July 29, 2021
not include (1) any installment payment for a period of ten (10)
years or more, (2) any distribution made as a result of an
unforeseeable emergency or other distribution which is made upon
a hardship, or (3) for any other distribution, the portion, if any, of
the distribution that is a required minimum distribution under Code
Section 401(a)(9).
(ii) An eligible retirement plan means an individual retirement account
described in Code Section 408(a), an individual retirement annuity
described in Code Section 408(b), a qualified trust described in
Code Section 401(a), an annuity plan described in Code Sections
403(a) or 403(b), or an eligible governmental plan described in
Code Section 457(b).
ARTICLE XI - TRUST
11.1 General. All contributions and transfers to the Plan, all property and rights
purchased with such amounts, and all income attributable to such amounts, shall
be held and invested in the Trust in accordance with the terms of this Article and
Article 11, unless a separate written Trust Agreement that constitutes a valid trust
under the laws of the State of Michigan is adopted. As of March 26, 2018, the
Oakland County Retirement and Deferred Compensation Board is the Trustee of
the Trust. The Trustee shall ensure that all investments, amounts, property, and
other rights held under the Trust are held for the exclusive benefit of the
Participants and their Beneficiaries and to defray any reasonable expenses of the
Plan and/or the Trust. It shall be impossible, prior to the satisfaction of all
liabilities with respect to the Participants and their Beneficiaries, for any part of
the assets and income of the Trust to be used for, or diverted to, purposes other
than for the exclusive benefit of the Participants and their Beneficiaries.
11.2 Custodial Accounts and Annuitv Contracts. If assets are held in a custodial
account or annuity contract, the term "Trust Agreement' shall also mean the
custodial account agreement or annuity contract.
11.3 Trustee Powers.
(a) The Trustee bas full discretion and authority to invest and re -invest the
assets of the Plan in accordance with Article XII.
(b) In exercising its discretionary authority with respect to the management of
the assets of the Plan, the Trustee shall exercise the care, skill, prudence
and diligence, under the circumstances then prevailing, that an individual
of prudence acting in a like capacity and familiar with such matters would
use in the conduct of an enterprise of like character and similar objectives.
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(c) The Oakland County Retirement and Deferred Compensation Board may
retain the services of (i) investment counsel to advise the Retirement
Board in the making and disposition of investments; (ii) record keepers
and tbird-party administrators to provide recordkeeping services for the
assets of the Plan; (iii) custodians; (iv) legal counsel, and (v) such other
advisors that the Retirement Board determines are necessary or prudent to
engage in exercising its authority as Trustee.
ARTICLE XII —INVESTMENT POWERS
12.1 Investment Powers. In accordance with the Investment Policy Statement adopted
by the Retirement Board, the Trustee shall have full discretion and authority to
invest the Trust's assets, except with respect to assets under the control or
direction of an investment manager or with respect to assets subject to Section
12.2.
12.2 Self Directed Investments. To the extent that a Participant's Account has been
designated as self -directed, a Participant may, subject to procedures established
and applied in a uniform, nondiscriminatory manner; elect to direct the Trustee to
invest his or her Account in specific assets or funds. In the absence of an election,
Participant Accounts shall be invested in an "age based lifestyle fund" to be
selected in the sole and absolute discretion of the Retirement Board.
The portion of a Participant's Account which is self -directed by the Participant
shall not share in Trust net earnings or net losses, but shall be charged or credited
as appropriate with net earnings, losses, appreciation and depreciation attributable
to such investment activities directly related to the Participant Account that is
self -directed.
The Trustee shall follow the directions given by a Participant subject to the
limitations contained in this Plan. Neither the Trustee nor any other person shall
be under a duty to question any direction of the Participant, or make any
suggestions to the Participant in connection with any direction. The Trustee shall
comply as promptly as practicable with directions given by a Participant.
All self -directed Participant Accounts shall be subject to the following limitations:
(a) The Retirement Board or Trustee shall not be responsible or liable for any
loss or expense which may arise from or result from the compliance with
any Participant direction, nor shall the Board or Trustee be liable for any
loss or expense which may result from either the Board's or the Trustee's
refusal or failure to comply with any Participant direction.
(b) The Retirement Board shall establish rules and procedures limiting the
investment vehicles which may be selected by Participants, provided
22
DRAFT Dated July 29, 2021
however, that such rules and procedures shall be applied in a uniform and
nondiscriminatory manner. The Retirement Board shall have the express
power to refuse any investment direction which would be administratively
burdensome or which the Retirement Board believes, in its sole and
absolute discretion, would constitute a prohibited transaction as defined in
Code section 4975, which would generate unrelated business income or
unrelated debt financed income to the Plan or would otherwise be
improper by virtue of any applicable law.
(c) All expenses incurred by the Trust or Plan pursuant to a Participant's
investment directions, including but not limited to brokerage fees, transfer
taxes, state and federal income taxes arising from unrelated business
taxable income or any other tax of any kind whatsoever which may be
levied or assessed under existing or future laws upon or in respect to a
Participant's investment directions or any other incidental expenses shall
be paid solely with funds from the Account of such Participant.
(d) No Participant shall have the right to elect to have the Trustee purchase an
insurance contract on his or her life for his or her Account, except those
certain life insurance contracts purchased prior to January 1, 1989.
12.3 Investment Manner. In the event that the Trustee appoints an investment
manager for all or a portion of the Trust, the following shall apply:
(a) The investment manager shall have the sole responsibility, duty and power
to manage and direct the Trust assets assigned to it.
(b) The investment manager may exercise his authority through procedures
agreed upon with the Trustee and in accordance with all applicable laws.
12.4 Statutory Authorities. Notwithstanding any other provision of the Plan to the
contrary, the Trust's assets shall be invested in accordance with the applicable
provisions of Code section 457 (and the regulations thereunder) and Michigan
Compiled Laws sections 38.1132-38.1141 (Public Employee Retirement System
Investment Act; Public Act 314 of 1965, as amended).
ARTICLE XIII — PLAN ADMINISTRATOR POWER AND DUTIES
13.1 Duties and Responsibilities. The powers, duties and responsibilities of the Plan
Administrator, in its sole and absolute discretion, with respect to the
administration of the Plan, shall include but not be limited to the following:
(a) To determine and authorize payment of Plan benefits;
23
DRAFT Dated July 29, 2021
(b) To make, amend and enforce all necessary rules and regulations regarding
the Plan's administration;
(c) To resolve any and all issues and problems as may arise in connection
with the interpretation, construction and administration of the Plan;
(d) To direct the recordkeeper to invest Plan assets in accordance with each
Participant's directions and the Plan's terms;
(e) To ensure that the Plan complies with all Federal, State and local statutory
and regulatory agency requirements;
(f) To cause the preparation and tiling of all required agency reports;
(g) To establish and maintain appropriate books and records for the Plan;
(h) To draft and disseminate inforniation regarding the Plan;
(i) To manage other duties assigned to him or her by the Retirement Board.
13.2 Bindinu Action. Any decision or action of the Plan Administrator concerning or
in respect to any issue or problem arising out of or in connection with the
construction, interpretation, administration and application of the Plan, including
any rules and regulations promulgated hereunder, may, in the Retirement Board's
sole discretion be appealable to the Retirement Board.
13.3 Cost. The Plan Administrator shall pay Plan costs as authorized by the
Retirement Board in accordance with Section 14.12.
ARTICLE XIV — PLAN ADMINISTRATION
14.1 Non-Assivability. Except as provided in Sections 14.2 and Article Vlll, the
interests of each Participant or Beneficiary under the Plan are not subject to
claims of the Participant's or Beneficiary's creditors; and neither the Participant
nor any Beneficiary shall have any right to sell, assign, transfer, or otherwise
convey the right to receive any payments hereunder or any interest under the Plan,
which payments and interest are expressly declared to be non -assignable and non-
transferable.
14.2 IRS Levy. The Plan Administrator may pay from a Participant's or Beneficiary's
Account the amount that the Plan Administrator finds is lawfully demanded under
a levy issued by the Internal Revenue Service with respect to that Participant or
Beneficiary or is sought to be collected by the United States Government under a
judgment resulting from an unpaid tax assessment against the Participant or
Beneficiary.
24
DRAFT Dated July 29, 2021
14.3 Payments to Minors and Incompetents. If a Participant or Beneficiary entitled to
receive any benefits hereunder is a minor or is adjudged to be legally incapable of
giving valid receipt and discharge for such benefits, or is deemed so by the Plan
Administrator (in its sole and absolute discretion), benefits will be paid to such
person as legally designated for the benefit of such Participant or Beneficiary.
Such payments shall be considered a payment to such Participant or Beneficiary
and shall, to the extent made, be deemed a complete discharge of any liability for
such payments under the Plan.
14.4 Procedure When Distributee Cannot Be Located. The Plan Administrator shall
make all reasonable attempts to determine the identity and address of a Participant
or a Participant's Beneficiary entitled to benefits under the Plan. For this purpose,
a reasonable attempt means (a) the mailing by certified mail of a notice to the last
known address shown on the County's or the Plan Administrator's records, (b)
notification sent to any governmental authority with a forwarding program, (c) a
search of public records using free electronic search tools, and (d) if
circumstances warrant it, use a cormuercial locater service, with the cost of such
service being charged to the Participant's account. If the Plan Administrator is
unable to locate a person entitled to benefits hereunder, or if there has been no
claim made for the benefits, the Participant's Account shall remain in the Plan.
Any distribution check that was not cashed shall be deposited into the
Participant's account to be held until the Participant, or if the Participant is
deceased, the Participant's Beneficiary can be located.
14.5 Tax Benefits. The County does not and shall not guarantee any tax benefits or
advantages under the Plan.
14.6 Riuhts of Participants. Each Employee, upon having elected to become a
Participant, shall be deemed to have assented to the terms and conditions of the
Plan. Each Participant shall at reasonable times be allowed to examine his or her
particular Account to determine its status and condition.
14.7 Termination or Amendment. Subject to the applicable requirements of the Code
and laws of the State of Michigan, the County reserves the right at any time to
amend or terminate the Plan without the consent of any Participant or Beneficiary.
Except as may be required to maintain the status of the Plan as an eligible
deferred compensation plan under Code Section 457 or to comply with other
applicable laws, no amendment, modification or termination shall impair any
individual's right to benefits under the Plan or expand the County's obligation to
provide benefits with respect to amounts previously credited to Participants'
Accounts.
14.8 Conformity with Internal Revenue Code Section 457. The Plan shall be operated
and administered consistent with Code Section 457 and all applicable regulations.
25
DRAFT Dated July 29, 2021
Such authorities shall be controlling as to any inadvertent inconsistencies which
may occur in the Plan's provisions.
14.9 Emnlovment. Nothing contained in this Plan shall be deemed to give any
Participant or Employee the right to be retained in the service of the County or to
interfere with any right of the County to discharge any Participant or Employee at
any time regardless of the effect which such discharge shall have upon him or her
as a Participant in the Plan.
14.10 Construction. The Plan shall be construed under the laws of the State of
Michigan and in conformity with the requirements of Code Section 457 and all
regulations thereunder applicable to eligible deferred compensation plans. Article
headings are for convenience only and shall not be considered as part of the terms
and provisions of the Plan. Words in the masculine gender shall include the
feminine, and the singular shall include the plural, and vice versa, unless
otherwise qualified by the context.
14.11 Bindin¢ Contract. The terms of the Plan, as duly amended from time to time,
shall constitute a contract between each Participant and the County and shall be
binding, as applicable, upon their heirs, administrators, trustees, successors,
assigns, and Beneficiaries.
14.12 Plan Exnenses. The expenses of administering the Plan and Trust, including (i)
expenses incurred by the Retirement Board in the administration of the Plan and
Trust, (ii) fees and expenses approved by the Retirement Board for investment
advisory, custodial, recordkeeping, and other Plan administration and
communication services, and (iii) any other expenses or charges allocable to the
Plan or the Trust that have been approved by the Retirement Board shall be
charged to the Trust; provided however, the Retirement Board, in its sole and
absolute discretion, may charge an individual Participant's Account for expenses
incurred by the Plan on behalf of the Participant (including, but not limited to,
expenses incurred by the Plan in determining the status of a Qualified Domestic
Relations Order or in preparation of loan documents). Brokerage fees, transfer
taxes, and any other costs incident to the purchase or sale by the Trust of
securities or other investments shall be deemed to be part of the cost of such
securities or investments or deducted in computing the sales proceeds therefrom
and shall be accounted for accordingly.
14.13 Rieht to Susoend Benefits and Correct Errors. The Plan Administrator shall take
such steps as are considered necessary and appropriate to remedy any inequity
that results from incorrect information received or communicated in good faith or
as the consequence of an administrative error. The Plan Administrator may
suspend the payment until satisfied as to the correctness of the payment or the
person to receive the payment or to allow filing in any court of competent
jurisdiction of a suit in such form as the Plan Administrator considers appropriate
26
DRAFT Dated July 29, 2021
for a legal determination of the benefits to be paid and the persons to receive
them. The Plan Administrator specifically reserves the right to correct errors of
every sort, and the Participant hereby agrees as Participant or on behalf of any
Beneficiary or Beneficiaries to any method of error correction as the Plan
Administrator shall specify. The objective of any such method of error correction
shall be, to the extent reasonably possible, to adjust the Account of the Participant
by reversing transactions or taking other actions to approach the situation that
would have existed if the error had not been made. In the course of correcting an
error, any amounts that are removed from a Participant's account and not owed to
a Participant shall be allocated to a suspense account and used to offset future
Employer contributions. The Plan Administrator shall also be authorized to
recover any payment made in error including the right to make deductions from
future benefits.
14.14 Reliance on Electronic Instructions, Directions, Signatures, Contracts and
Records. For all purposes under the Plan, the Plan Administrator and the County
may (but are not required to) give the same effect to electronic instructions,
directions, signatures, contracts, records or similar communications (collectively,
"records and signatures") as it would give to written records and signatures, and
the Plan Administrator's and the County's actions in so doing shall be protected
to the same extent as if such electronic records and signatures were, in fact, in
written form. Any such electronic records and signatures shall be retained and
provided by the Plan Administrator and/or the County in accordance with
applicable law. For all purposes under the Plan, the term "electronic" or
"electronically" shall mean relating to technology having electrical, digital,
magnetic, wireless, optical, electromagnetic, or similar capabilities.
14.15 Communications from Participants. All enrollments, elections, designations,
applications and other communications by or from an Employee, Participant,
Beneficiary, or legal representative of any such person regarding that person's
rights under the Plan shall be made in the form and manner established by the
Plan Administrator and shall be deemed to have been made and delivered only
upon actual receipt by the person designated by the Plan Administrator to receive
such communication. Neither the Plan Administrator nor the County shall be
required to give effect to any such communication that is not made on the
prescribed form and in the prescribed manner and that does not contain all
information called for on the prescribed form. The County shall promptly furnish
the Plan Administrator or its designee a copy of any such communication that is
delivered or transmitted to the County.
14.16 Communications to Participants. All notices, statements, reports, and other
communications from the Plan Administrator or the County to any Employee,
Participant, Beneficiary, or legal representative of any such person shall be
deemed to have been duly given when delivered electronically, or when mailed by
27
DRAFT Dated July 29, 2021
first class mail, to such person at his or her last mailing address appearing on the
Plan's records.
14.17 Time Periods. As necessary or desirable to facilitate the proper administration of
the Plan and consistent with the requirements of Code section 457, the Plan
Administrator may further restrict the time periods during which a Participant or
Beneficiary is required to make any election under the Plan, including the making
or amending of a Deferred Compensation Agreement, the making or amending of
investment option selections, the election of distribution commencement dates or
distribution forms.
14.18 Reliance on Data and Consents. The County, the Plan Administrator, and all
other persons or entities associated with the operation of the Plan, the
administration management of its assets, and the provision of benefits thereunder,
may reasonably rely on the truth, accuracy and completeness of all data provided
by a Participant, and/or Beneficiary, including, without limitation, data with
respect to age, health and marital status. Furthermore, the County, the Plan
Administrator, and all persons identified above may reasonably rely on all
consents, elections and designations tiled with the Plan or those associated with
the administration operation of the Plan by any Participant or Beneficiary, or the
legal representatives of such persons without duty to inquire into the genuineness
of any such consent, election or designation. None of the aforementioned persons
or entities associated with the administration of the Plan, its assets and the
benefits provided under the Plan shall have any duty to inquire into any such data,
and all may rely on such data being current to the date of reference. It shall be the
duty of the Participant or Beneficiary to advise the appropriate parties of any
change in such data. The Plan Administrator shall not be liable for the
consequences of such change in data.
14.19 Tax Consequences. The County does not represent or guarantee that any
particular Federal or State income, estate, payroll, personal property or other tax
consequences will occur because of the Participant's or Beneficiary's
participation in this Plan. The Participant shall be responsible to obtain
appropriate advice regarding all questions related to Federal, State or local
income, estate, payroll, personal property or other tax consequences arising from
participation in this Plan.
14.20 Withholding; Pavroll Taxes. The trustee or custodian shall be entitled to
withhold from payments or benefits hereunder any income tax or payroll taxes
required to be withheld from such payments under local, state or federal law.
14.21 Equal Access to Benefits, Rights and Features. Any determination made by the
County with respect to the availability of benefits, rights and features under this
Plan shall apply on a non-discriminatory basis allowing equal access for all
DRAFT Dated July 29, 2021
Participants; provided, however, that such access may be limited by the terms of a
collective bargaining agreement or individual employment contract.
14.22 Entire Agreement. This Plan and all properly adopted amendments to the Plan
shall govern the provision of deferred compensation benefits pursuant to Code
Section 457(b). No other instrument, communication statement of any sort shall
modify this Plan in any way or be relief upon the parties to this Agreement.
14.23 Claims Procedures. Any person claiming a benefit, requesting an interpretation or
ruling under the Plan, or requesting information under the Plan, shall present his
or her request in writing to the Plan Administrator. Any dispute over payment
from Accounts under the Plan shall be resolved by the Plan Administrator
pursuant to its written claims procedures. Such claims procedures shall comply
with applicable state and local laws including, but not limited to, civil service
rules and applicable collective bargaining agreements.
(a) Initial Claim. In order to request a benefit (a "Claim"), a Participant or
Beneficiary under the Plan (a "Claimant") or his duly authorized
representative must file such Claim in accordance with procedures
established by the Plan Administrator.
(b) Initial Decision.
(i) Time Limit. The Plan Administrator shall decide upon a Claim
and notify the Claimant of the decision within a reasonable period
of time after receipt of a Claim; provided however, that such
period shall in no event exceed ninety (90) days, unless special
circumstances require an extension of time for processing. If such
an extension of time for processing is required, then the Claimant
shall, prior to the termination of the initial ninety (90) day period,
be furnished a written notice indicating such special circumstances
and the date by which the Plan Administrator expects to render a
decision. In the case of an extension, the Claimant shall receive a
written determination regarding the Claim no later than ninety (90)
days after the end of the initial ninety (90) day period.
(ii) Notice of Denial. If the Claim is wholly or partially denied, then
the Plan Administrator shall furnish to the Claimant, within the
time limit applicable under subparagreaph (b)(i) above, a written
notice setting forth in a manner calculated to be understood by the
Claimant:
(A) The specific reason or reasons for such denial;
we
DRAFT Dated July 29, 2021
(B) Specific reference to the pertinent Plan provisions on which
the denial is based;
(C) A description of any additional material or information
necessary for the Claimant to perfect his Claim and an
explanation of why such material or information is
necessary; and
(D) Appropriate information as to the steps to be taken if the
Claimant wishes to submit his Claim for review pursuant to
Section 14.24, including notice of the applicable time limits
set forth in Section 14.24(c)(1).
14.24 Claim Review Procedure.
(a) Claimant's Rights. If a Claim is wholly or partially denied under Section
14.23, the Claimant or his duly authorized representative shall have the
following rights:
(i) To obtain, subject to subparagraph (b) below, a full and fair
review;
(ii) To obtain, upon request and free of charge, reasonable access to,
and copies of, all documents, records and other information
relevant to the Claimant's Claim;
(iii) To submit written comments, documents, records and other
information relating to the Claim; and
(iv) For a review that takes into account all comments, documents,
records and other information submitted by the Claimant relating
to the Claim, without regard to whether the information was
submitted or considered in the initial benefit determination.
(b) Request for Review.
(i) Filing. To obtain a review pursuant to subparagraph (a) above, a
Claimant entitled to a review or his duly authorized representative
shall, subject to subparagraph (b)(ii) below, request a review (a
"Request for Review") in accordance with procedures established
by the Plan Administrator.
(ii) Time Limits for Requesting a Review. A Request for Review must
be mailed or delivered within sixty (60) days after receipt by the
Claimant of the written notice of the initial denial of the Claim.
30
DRAFT Dated July 29, 2021
(c) Decision on Review.
(i) Time Limit.
(A) If, pursuant to subparagraph (b) above, a review is
requested, the Plan Administrator shall make a decision
regarding the Request for Review and notify the Claimant
of the decision within a reasonable period of time after the
receipt of the request; provided however that such period
shall in no event exceed one hundred eighty (180) days,
unless special circumstances require an extension of time
for processing. If such an extension of time for processing
is required, then the Claimant shall, prior to the termination
of the initial one hundred eighty (180) day period, be
furnished a written notice indicating the special
circumstances and the date by which the Plan
Administrator expects to render a decision. In the case of
an extension, the Claimant shall receive a written
determination regarding the Request for Review no later
than sixty (60) days after the end of the initial one hundred
eighty (180) day period.
(ii) Notice of Decision. The Plan Administrator shall furnish to the
Claimant, within the time limit applicable under subparagraph (c)
(i) above, a written notice setting forth in a manner calculated to be
understood by the Claimant:
(A) The specific reason or reasons for the decision on review;
(B) Specific reference to the pertinent Plan provisions on which
the decision on review is based;
(C) A statement that the Claimant is entitled to receive, upon
request and free of charge, reasonable access to, and copies
of, all documents, records, and other information relevant
to the Claimant's Claim; and
(D) A statement describing any voluntary appeal procedures
that may be offered by the Plan and the Claimant's right to
obtain the information about such procedures.
31
DRAFT Dated July 29, 2021
ARTICLE XV — SIGNATURES
This Plan document, as amended and restated, is signed on this day of
, 2021.
OAKLAND COUNTY:
10
PLAN ADMINISTRATOR:
By:
OAKLAND COUNTY RETIREMENT AND
DEFERRED COMPENSATION BOARD:
By:
32
DRAFT Dated July 29, 2021
OAKLAND COUNTY
457(b) DEFERRED COMPENSATION PLAN
Restated Resolution
DRAFT Dated July 29, 2021
TABLE OF CONTENTS
ARTICLEI - INTRODUCTION.............................................................................................
I
ARTICLE B — DEFINITIONS .................... ..... .............. .... ........
........... ..........._ ............._ .. - I
21 Account ............ ......................... ......... ....... .... .__.. ........
.................... ... ..................1
22 Alternate Payee ......................... ...._ .................... ...... ...._
.................. ................... 1
23 Beneficiary..._ ............................. ...... ....... ..... ...................
.... ..... ...... .. ............... .._ l
2.15 Code ................... ..... .................................
_......................_................ !2
2.i6 Compensation ................. __.......................................................................................2
2.o7 Contributions ................. ....................... ..._....................................................
........2
2.7g County
...................... ........ .......... ..........
......................... ........ .
' 9 Deferred Compensation .... .................................. .............
....... ......... ------- ...... ........ .. ..2
2.10 Cle .a,-rat:d Ro44 i,couo:
_'.tl Effective Date...........................................................................................................
2
2.121 Employee.................................................................................................................2
2.132 Entry Date...............................................................................................................
2
2.1 !3 IncludibleCompensation .................._........ _ ..........................
........ ;?2
2.194 MatchingContribution ..............................................................................................
2
2.I65 Normal Retirement Age ...................._... ........................ ...... ..............
..... ...... ........ 3
2.176 Participant .................... ..._ ....................... ... .................................................
_. 3
2.147 Plan ........ .......................... ............................... .... .................. .. ... ......
............... ......3
2.19,9 Plan Administrator ......... .......................... ... ............................. _ ..........................
2.:'OtWlan Year ...................... _.... ............. .......... ___ ... .................. ................................
15
............... ................................................................
.......................... ... J
'..'3 Domestic Relations Order or"QDRO...................................._
........... �3
—'
_Qualified
7 9..I o,:ol_Jcd 1i�?a _w!itd aain': Pratt: ni.....................
.. ............ .. ..... .. ...... .....
Severance from Employment....._ .. .... ............... ..... ....... .._.................
..... ........ ....... `3
22r,2 L.'nii-. Pltt-.;v; ; t.IiJ'[el...................................................... .................
.... ..... .................. !
227 .................. ...... ....................................................... ... ...................
............ ....... _3
-'Trust
22�3 Trustee ............... ................................. ................................. ......................
....... ....... ... 53
2.2,'4 USERRA.................... _ _ ...................................................... ._..
.... .................. .. ,3
2.;025Valuation Date...........................................................................................................
-3
ARTICLE BI — ELIGIBILITY AND PARTICIPATION........................................................
"i4
3.1
Eligibility........_ . .......................... .................................. __.................................
`4
3.2
Procedure for and Effect of Admission..................................................................
N4
3.3
Time for Contributions to Begin.... ...... ...................................................................
54
3.4
Contributions Made Promptly ........... ........ ......................... ...... ........................
... ...... .,4
3.5
Modification of Deferral Agreement ......... . .... .... .. ............................
_ .................. n4
3.6
Cancellation of Deferral Agreement...... ........... ... ... ................. .......
.. . ................... o-4
3.7
Leave of Absence .......... ........ ............................._..........................
.................... os
3.8
Disability ........................... _............ ........... .......................... ..........
. .................... "5
3.9
Deferral of Sick, Vacation, and Back Pay Under Plan ..............................................
a5
Formatted _Font. Times New Roman
DRAFT Dated July 29, 2021
ARTICLE IV —CONTRIBUTIONS AND LIMITATIONS ....................... .... .............
... ......... 75
4.1
Employee Deferral General Limitations...................................................................
75
4.2
Special Section 457 Catch-up . .... ... ................ ........ ...... .................. .... .........
... ........... 7s
4.3
Catch -Up Contributions for Individuals Age 50 and Older . .............. ...
............... . 7-5
4.4
401(a) Matching Contributions................................................................................
=6
4.5
Special Rules..........................................................................................................
86
4.6
Correction of Excess Deferrals . ... .... .............................. ............. ................................'t�
47
Protection of Persons Who Serve In Uniformed Service ..............................................
y7
ARTICLEV
—DISTRIBUTIONS...................................................._..................
........_........... °7
5.1
Benefit Distributions................................................................................................
:�
5.2
Benefit Commencement Date . ... .................. ........ .... ................ ..... ..
...... .......... .. 11i8
5.3
Forms of Distribution............................................................................................
108
5A
Minimum Distribution Rules ..... ...................... .......................... ..........
....... .... ...... Ii18
5.5
,+,andtatoaL.................................................................................................
I
r•
Hardship Distributions.................................................................................................
i 19
5.76
Definition of Unforeseeable Emergency .................. ......_................. ...
................... 1_4
5.S7
Unforeseeable Emergency Distribution Standard......... — ..........................................
120
5.v8
Distribution Necessary to Satisfy Emergency Need ........ ._.......................................
1 ^0
.5. ttl9
i lcn Administrator Must Determine IIardship............................................................
L'.0
5.1.0
Rollover Distributions..........................................................................................
130
ARTICLE VI—Rrti1i
..... ...... ......... ..... .. ... .... ( e
�; T ,�, trv; li nr isi•, r,�t' �: �; troth �,: C�o'�.t, L; ... ..
AP-TILq a `.'il - DEATH BENEFITS......................................................... ........................ 1 I
76.1 Form and Amount of Death Benefits . ............. ..... ........................ .................... .... 15I-
76.2 Beneficiary Designation ....... ........................... .......................... ................... _... 14=
ARTICLE VIE —QUALIFIED DOMESTIC RELATIONS ORDERS ........ ...... .....................
1 ?5
,7.I Qualified Domestic Relations Orders .. ....................... ...__......................
...... .......... I?3
ARTICLEV-III - PLAN LOANS.........................................................................................
1 �13
',g 1 Loans..... .. ......................... ..................... .............. ....... — ....... . ......................
IS3
98 ^_ Maximum Amount of Loan ....... ... .......................... ........................... ....................
. 184
5.3 Tennis of the Loan . ..................... .................................................. — .....................
1 ;4
r,9.4 Security for Loan; Default ........ ..... ..................... ... ......................... ......................
1e4
;5.5 Repayment ... ..... ......................... ... .................. .............................. ... .....
...... .........i,it-s
ARTICLE IX— TRANSFERS AMONG PLANS OF THE t'u_Uh. I ` EL,,WLGYER,
ROLLOVERS INTO THE PLAN .......... _......................... _.... ................. ....................
-'u.1 Incoming Transfers ..................... _.... ............... . ?It-1-5
ittq.2 Rollovers ... ....................... _................ .......... .... ..... ............ ...... .................... 10TS
DRAFT Dated July 29, 2021
ARTICLEXI -TRUST ...................................................................... ...............................
' 16
1 "0.1 General. ... .................. ................... .......................................... ....... .... .. . . .........
21€,
1 102 Custodial Accounts and Annuity Contracts . .................................. ..................... .......
216
1 I0.3 Trustee Powers . ......................... ................ ................. .................. ................... ......
216
ARTICLE XII - INVESTMENT POWERS.......................................................................
_--I-,'-
1.^ l-A Investment Powers._................................................................................................
_-1?
1 -1.2 Self Directed Investments .............
Ln--.3 Investment Manager...................................................................................................34-9
114.4 Statutory Authorities . ...................... .......................................................... .:.............
' ;}g
ARTICLE XIII - PLAN ADMINISTRATOR POWER AND DUTIES ................................
"'_t-I-S
1i=.1 Duties and Responsibilities........................................................................................
1 4
1;2.2 Binding Action......................................................................................................
2.1 P
132.3 Cost .................. ......................... ......................................... .....................................
a, La
ARTICLE XII:II-PLAN ADMINISTRATION....................................................................
. -1
1=:3.1 Non-Assignability..._.............................................................................................
_4A
1 13.2 IRS Levy . ...... ....................... ....................................... ..................... ................... ...
1 43.3 Payments to Minors and Incompetents................................................................
1-4.4 Procedure When Disttibutee Cannot Be Located........... _.......................................
144.5 Tax Benefits . .......................... ._.................. ................. ... .........................................
250
143.6 Rights of Participants...........................................................................................
2.6
11:0 Termination or Amendment.........................................................................................
2so
1-3.9 Conformity with Intermit Revenue Code Section 457........ .... ..................................
2'44
144.9 Employment . ........... .. ..................................... .........................................
2n0
14 3.10Constmcti(in .........................................................................................................
2t-A
1;3.1113inding Contract ................ ................... ..................... .............................................
14
12PlanExpenses ....................... ... ................. ...................... .................. ............... ._.....
2o l
1-3. 131tight to Suspend Benefits and Correct Errors........................................................
21+
1 13. 14Reliance on Electronic Instructions, Directions, Signatures, Contracts and Records..
271
I43.15Commmnications from Participants ........ ..._................ ...........................................
2_%3
I Al. 16Communications; to Participants ................. ............................................................2
i2
1 Q3.17Time Periods........................_........................................................_.....................
2'12
1- .1gReliance on Data and Consents...............................................................................
2 2
1�13.19Tax Consequences ... .............. ...... ..................................... ... .... ................ ............
2,;2
I- 4.20Withholding; Payroll Taxes....................................................................................
2t,.l
'
1-3.21Equal Access to Benefits, Rights and Features ...... .... .............. ................. ._........
2;9
1 g3.22Enfirc Agreement....................................................................................................
2��3
I d323Claims Procedures......................................................................................... .....2%
I !3.24Ctaim Review Procedure.......................................................................................
_1�12-1
ARTICLE XIV -SIGNATURES ..............
iii
DRAFT Dated July 29, 2021
457(h) DEFERRED COMPENSATION PLAN
Oakland County (the "Employer") hereby amends and restates the
Oakland County 457(b) Deferred Compensation Plan (the 'Plan") effective as of thcis I"
23"i-day of .,m, ;n,Ock>ar, 20_2p W, unless an earlier date is provided herein.
ARTICLE I - INTRODUCTION
It is intended that this Plan and any related Trust Agreement be interpreted and
construed as a plan designed to constitute a governmental unit eligible deferred
compensation plan within the meaning of section 457(b) of the Internal Revenue Code of
1986, as amended, the regulations issued thereunder and other applicable law.
The purpose of the Plan is to attract and hold certain Employees and other parties
related to the Employer and permit eligible Employees to enter into agreements with the
Employer which will provide for payments upon retirement, termination or death.
ARTICLE 11 —DEFINITIONS
the following terms when used herein shall have the following meanings
21 Account shall mean the bookkeeping account maintained with respect to each
Participant which reflects the value of the Deferred Compensation credited to the
Participant, the earnings or loss of the Trust (net of Trust expenses) allocable to
the Participant, any transfers for the Participant's benefit, and any distributions
made to the Participant, Participant's Beneficiary, or Alternate Payee. If a
Participant has more than one (1) Beneficiary at the time of the Participant's
death, then a separate Account shall be maintained for cacti Beneficiary. A
Participant's Account shall include any accounts established under Article'(9.
2.2 Alternate Payee means a person who is or was the spouse of the Participant or is
the child of the Participant to the extent that such person has rights under a court
order that the Plan Administrator has determined to be a Qualified Domestic
Relations Order as described in Treas. Reg. Section 1.457-10(c), or any successor
regulation or guidance.
2.3 Beneficiary shall mean the person or persons designated by the Participant in
accordance with Section 6.2 to receive distributions from the Participant's
Account after the Participant's death.
4 Boord ha .. man -the n^ fiord (oa ry Retirement and Defence Formatted: Indent: Lon 0.5", No bullets or numbering
2.-S_' r Code means the Internal Revenue Code of 1986, as amended. Reference to a
specific Code section shall include such section, any valid Treasury Regulation
DRAFT Dated July 29, 2021
promulgated thereunder, and any comparable provision of any future legislation
amending supplementing or superseding such section.
2:42. � Comnensation means all compensation for services to the Employer, including
salary, wages, fees, commissions, bonuses, and overtime pay, that is includible in
the Employee's gross income for the calendar year.
?.y2^ Contributions mean Employee Contributions and (if any) Employer contributions
deferred under the Plan according to the provisions of the Plan. Contributions
shall not be reduced because of the Participant's attainment of any age.
Contributions shall be made according to the payroll methods of, and at such
times as may be determined by, the Employer.
=.8, _? County shall mean Oakland County, Michigan.
t.S t,<1_i:,0, Ai;' �aU."�=_�'t:_':P, m;_fti �_tlxitL :b::S" 'b'.0 C"A0 cen do LiYi s10 C'id:; Formatted: Heading
1-1_—_'
::li Onwa'i .., lI;:} i, _ .a`illlt'j Vo ti[uu _ioi iv_-c:f C, ibt'
:`PtYlSin DI,,, i 1cd 10,1::! Itf 1'IDI, !i:a:�A iil:. �Illi;Iu Pc,C'"t lscHOif LIA t_V
2.9 Deferred Commensation means the amount of Compensation otherwise payable to
the Participant that the Participant and the Employer agree to defer according to
the provisions of the Plan and any other amount which the Employer agrees to
credit to a Participant's Account. The amount or value of the Participant's
Deferred Compensation is the amount or value of the Participant's Account
(including any rights purchased under the Account). Deferred Compensation may
also refer to the right under this Plan of the Participant or Beneficiary to receive a
Distribution of all or any portion of the Account.
2.10 F,, _ .'+:'r:`ta:i t,,d he ..I.
=1.ce�, R:i �,
Oa_ , 1, o-u'.v:ni tsidDGsa:_�t
fit—'
:::_rim •t�;_<i ,:.eco;
i �!:.� I art:.'f:r:f �t �:> R,;:'I l-
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is,flrr; e.s
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2.11 Effective Date for this restatement means the date that the County Board of
Commissioners adopted this restatement unless otherwise indicated herein. The
original effective date of the Plan was April 5, 1979
2.12 6.niplo�ec shall mean a natural person characterized by the Plan Administrator, in
its sole and absolute discretion, as a "full-time eligible Employee" or "part-time
eligible Employee" as such is defined in the County's Merit System Rules.
DRAFT Dated July 29, 2021
Employee shall include natural persons who are covered by a collective
bargaining agreement. Employee shall not include part-time non -eligible or leased
employees (as defined by Code Section 414(n)), or individuals determined by the
County considering Internal Revenue Service and Department of Labor guidelines
for defining independent contractors, and as may be amended and/or modified
from time to time) even if such individuals are subsequently deemed to be the
County's conmron law employees. Also, Employee shall not include Circuit
Court, District Court, and Probate Court Judges first elected or appointed on or
after April 1, 1997.
2.13 Entry Date shall mean for each individual the date that such individual is
characterized by the Plan Administrator as an Employee.
2.14 Includible Compensation means an Employee's actual wages that are reported in
box l of Form W-2 for a year for services to the Employer, but subject to a
maximum of $200,000 (or such higher maximum as may apply under section
401(a)(17) of the Code), as adjusted thereunder from time to time, and increased
(up to the dollar maximum) by any compensation reduction election under
Section 125, 132(f), 401(k). 403(b), or 457(b) ofthe Code.
2.15 Matching Contribution shall mean a voluntary contribution made by the County
on behalf of a Participants as a result of the Participant's contribution into his or
her account maintained under this Plan.
2.16 Normal Retirement Age shall mean any age the Participant declares his/her
Normal Retirement Age in writing with the Plan Administrator prior to his/her
Severance from Employment; however, the Participant must at least reach age 55
with 25 years of service or age 60 with 8 years of service. Some represented
Employees' bargaining agreements may include a different definition of Normal
Retirement Age. Under no circumstances shall a Participant's Normal Retirement
Age under this 457(b) Plan be later than the age of 7 , and/or as modified by
IRS regulations. Participants may only make one election to declare their Normal
Retirement Age with the Plan Administrator, and any election made by a
Participant applies with respect to all 457(b) plans sponsored by the County.
2.17 Particmant shall mean an Employee who is currently deferring Compensation, or
who has previously deferred Compensation to the Plan by salary reduction and
who has not received a distribution of his or her entire benefit under the Plan.
2 18 Plan shall mean this 457(b) Deferred Compensation Plan for Oakland County, as
such may be amended from time to time.
2.19 Plan Administrator shall be the individual holding the position of Retirement
Administrator, or in his or tier absence, the Manager of Human Resources, or as
DRAFT Dated July 29, 2021
appropriately appointed by the County in accordance with the County's policies
and protocols.
2.20 Plan Year means the I2-month period commencing January I and ending
December 31.
"" Aqua„i _.------
I'i'C-Cd'" _._. _. ...?If. � r; .. �,r:,f r.,,c6;i�C-d dlld In lnet8:6C(i^ __ Formatted: Heading 2
wuiu .dr r tliao
;`cie') l:.. io!lu,<a' r4_
,.!M.O gra- Rqe-;," ,.I ,d h_c it_._,,ri.• :::!rn _..:cd lu;.:., a,crc„n_ . Ur, h;,,.
=•.rI m, lade :I No tic Prarc".i'i:?•_rrra:
?-I-1'.=_' Oualified Domestic Relations Order or "ODRO" means any judgment,
decree or order as defined in Code Section 414(p).
_s _tt_uli!!cdRotl,.!:.rrih;p.u,n°i.t"!!n ice:,nya`,:c:.�a�c.:csc_t__uJ_ara.�i_r,�hllt
0 odk S,"C i.t .:02At it: pnc..JI vd". :` :: u:. i�.h, rr
L7, icrrtic it iini_ ri atl n'x;r;iuc
othgrr�rcie)i*ib;c to nmk,_the fi',w
ho_;u;; doll tn�;n ,Ire U''. Lntd n,i,_r ^ru;'ttitf 'i'I?., rred- - Formatted: Heading 2
{bn,ncnratuan Ecicd. ..
Severance from Enmlovmeit means a voluntary or involuntary
termination of employment or expiration of all contractual relationships with the
County for any reason including death or disability, or for no reason. For
proposes of the foregoing sentence, an approved leave of absence by an Employee
shall not constitute a Severance from Employment.
v, R tttr .Icciicc _- :tl m: in_, _f_rre_t_t _ r_di:,-F C', n Cr,tc Gor-. o, 11 i`i r' L`
i.S_nrci;rt Intry cnr :o ;icchnu n I. o.h b:h:anuu;it; "n:
{11 rn.: oisbly .t�r�. e_i,c�l .+r�'ho P�ric
cir itna_tc :u Gr.;. ,ar_ n,xar.i dAC r-i -, J,: :>ioaoL
_ -' `=� sc .•_-'__- m ,qai< u,1,ia ti' q_n,ri
d�n_I;a !rn ':nc'tadii-6_ ;:r iw i'; ::<I'an r's :.r::_nc Ii dt•__i; fnh
id�Cr.tfi ,-,rC;! h:r• a;r r,i :?;r: ..;ra.,�e;' !:r:;mirhd,�
2'—d- -_ Trust shall mean all of the assets of the Plan held in trust pursuant to the
terns of this Plan or any separate written agreement made by and between the
County and the Trustee under which the Trust is maintained.
DRAFT Dated July 29, 2021
3.. "_4'.'i� Trustee shall mean effective March 23, 2018, the Oakland County
Retirement and Deferred Compensation Board.
USERRA means the Unifomred Services Employment and Reemployment
Rights Act of 1994. as.na _u_;; (Public Law No. 103-353).
dam:'. 30 Valuation Date shall mean the date provided for valuing Plan Accounts as
specified by the Trustee.
ARTICLE III -ELIGIBILITY AND PARTICIPATION
3.1 Eligibility. All Ee_tigible Employees can participate in the Plan by completing,
executing, and delivering- Ih:cr*_e %.-i a:ri_ra .:nd all oih_ €the instruments and
fornis required by the PL n Administrator. Each present Participant shall continue
to be a Participant in the Plan. Any other Employee who is classified as an
eligible Employee as of the Effective Date shall be eligible to participate in the
Plan on the Effective Date. Any Employee who is not eligible to participate in the
Plan as of the Effective Date shall be eligible to participate in the Plan upon
classification as an eligible Employee.
3.2 Procedure for and Effect of Admission. Any eligible Employee who elects to
become a Participant shall complete a Deferra_ean.;atien Agreement by
written or other means as prescribed by the Plan Administrator. The Plan
Administrator reserves the right to reject any Deferr._:e_'. Ccn�z-sa"^n
Agreement which does not conform with uniform, non-discriminatory procedures
it shall prescribe and advise the Ekligible Employee of the appropriate method of
correction. By becoming a Participant, such eligible Employee shall for all
purposes be deemed to have assented to the terms and provisions of this Plan and
to all amendments thereto.
The PLin Administrator may establish a minimum deferral amount, and may
change such minimums from time to time. The participation election shall also
include designation of investment funds and a designation of Beneticiary. Any
such election shall remain in effect until a new election is filed. When entering
into or amending his or her Defemi,ed o ion Agreement, the Participant
must agree to deter not more than the maximum amount provided by Article lV.
3.3 Time for Contributions to Begin. Contributions will be deferred for any calendar
month only if a Deferr l ':-C=empp€:}satie t Agreement providing for the deferral
has been entered into before the beginning of the month, with the first of such
contributions being made as soon as administratively feasible rU, after th3.
hegitinmg ofo-�^ ^ •th. However, for a new employee, Compensation may be
deferred for the calendar month during which the Participant first becomes an
Employee if a Defcrr_e�..nr Agreement providing for the deferral is
entered into on m before the first day on which he c ,hc performs services for the
DRAFT Dated July 29, 2021
Employer, and the first of such contributions will be made as soon as
administratively feasible after the Employee receives his or her first paycheck.
3.4 Contributions Made Promptly. Deferred Compensation by a Participant under the
Plan shall be transferred to the Trust within a period that is not longer than is
reasonable for the proper administration of die Participant's Account.
3.5 Modification of Deferral Agreement. Subject to the other provisions of the Plan
and the Plan Administrator's discretion, a Participant may �uuracdre* a his or
her Deferred CompensationAgreei: er# at any time in the month prior to the
effective date of the nwi.,ed dDefen-al a_igrccment.--_i pnr_t_Ipact ;17�:`.. cl_: i,?
exe'se hi, : r' hrr Dcretsrd _C=on�e�is_ icir cCtectv_mn_ed-aely f.tl1,;.:,in•
�utior �:Fu .evisn! I).a.tt _2 _lgrcment nu lca:ir�_ tl__-_'_csoordi�c� dc;�ca.v
i:: i �.aG: t'ec: i' s:❑2'JiG9LUu
3.6 Cancellation of Deferral Agreement. In accordance with procedures established
by the Plan Administrator, a Participant may cancel his or her Deferr._ed
Agreement at any time. The cancellation shall be effective as soon
as administratively fecasible after the Employee uoti_ __, mac i inu_ `diranisi-_ilpr
,fedmtels his or her election to rid _hc Deferr_I_ed-c-onmensatien Agreement.
3.7 Leave of Absence. Unless a Deferr,,_.d-Gerop�:aRmf Agreement is otherwise
revised, if a Participant is absent from work by leave of absence, his or her
Dc -�^'�''. �^- �'a'�,at-c-- ontributions shall continue to the extent that he or she
PMPu._s_t.• r_r, ivy Compensation_rom-_b, ups.
3.8 Disability. A disabled Participant may make--Def�-� t�xpensat+rrn
Contributions during any portion of the period of his or her disability to the extent
that he or she has actual Compensation (not imputed compensation and not
disability benefits) from which to make—B�f�rre"a�'"nsation Contributions
and has not had a Severance from Employment.
3.9 Deferral of Sick, Vacation, and Back Pav Under Plan. A Participant may elect to
defer accumulated sick pay, accumulated vacation pay, and back pay under the
Plan, provided that these amounts may be deferred for any calendar month only if
an agreement providing for the deferral is entered into before the beginning of the
month in which the amounts would otherwise be paid or made available and the
Participant is an ehjJ!!, Zmployee in that month.
DRAFT Dated July 29, 2021
ARTICLE IV — CONTRIBUTIONS AND LIAHTATIONS
4.1 Emmlovice Deferral General Limitations. Except as provided in section 4.2, the
maximum Deferred Compensation amount under the Plan for any Participant for
the taxable year shall not exceed the lesser of (i) the applicable dollar amount
within the meaning of Code Sections 457(b)(2)(A) and 457(e)(15)(A) as adjusted
for the cost -of -living in accordance with Code Section 457(e)(15)(B) for such
taxable year; or (ii) 100% of the Participant's Includible Compensation for such
taxable year.
4.2 Snecial Section 457 Catch-uu. Notwithstanding any provision in Section 4.1 to
the contrary, with respect to any one or men e of the three (3) taxable years ending
before the date of the Participant's Normal Retirement Age, a Participant may
elect to have Deferred Compensation contributed to the Plan in an amount not to
exceed the lesser of:
(a) Twice the dollar amount in effect for such taxable year under Code
Section 457(c)(15), or
(b) The amount of the Participant's "Underutilized Limitation" for the
Participant's taxable year, as determined pursuant to Treas. Reg. Section
1.4574(c)(3)(ii) and any successor regulations or guidance of similar
import.
A Participant may elect to apply the 457(b) catch-up limitation under the Plan
only once, regardless of whether the full amount of the limitation is utilized or
whether the limitation is utilized for all three years.
43 Catch-Un Contributions for individuals Aee 50 and Older. Any Participant who
is projected to attain age 50 before the end of a calendar year (or such other date
as the Treasury Department may require by regulations) may elect to have
additional Deferred Compensation contributed to the Plan in an amount not to
exceed the catch-up limit under Code Section 414(v) for the taxable year.—Tl4 -
inaximain amount , f, ble-yeiir to =tea;
,..�rTv) is ..s
cn-�n n���n� as Af'-z:2Qh r.e4'c nn r «,r
crwt -iaf'' �Gode- `). Notwithstanding the
foregoing, this paragraph shall not apply for any taxable year for which a higher
damnation under the special Section 457 catch-up described in Section 4.2 applies
to such Participant, to the extent required by applicable statute or regulations.
44 401(a) Matchnm-, Contributions. Amorally, the County shall decide, in its sole
discretion, whether sufficient funds exist to make Matching Contributions into a
separate 401(a) match account of each eligible Employee, with such Matching
DRAFT Dated July 29, 2021
Contribution not to exceed the general limitation described in Section 4.1 and the
457(b) catch-up limitations described in Section 4.2. The County shall have
exclusive discretion to decide whether sufficient fiords exist to make a Matching
Contribution in any given year. If the County determines that sufficient funds do
exist, the Matching Contribution shall be at the rate established by die County for
non -represented employees, and for represented employees at a rate established in
the bargaining agreement between the County and the Union representing the
respective employees. Any such Matching Contributions shall be credited to the
appropriate Participants' 401(a) match source maintained under the County's
401(a) Plan. The County may make Matching Contributions at any time
permitted by law and regulation. in addition, the County shall also have the
ability, subject to the general limitation described in Section 4.1 and the 457(b)
catch-up limitations described in Section 42, to crake voluntary discretionary
contributions, in any amount it determines, into Participants' Accounts
maintained under this Plan.
4.5 Special Rules. For purpose of this Article 4, the following rules shall apply'
(a) Participants rovered by more than one (1) eligible 457(h) plan. If a
Participant is or has been a participant in one (1) or more other eligible
457(b) plans (as defined by Code Section 457(b)), then this Plan and all
such other 457(b) plans shall be considered as one (1) plan for purposes of
applying the foregoing limitations of this Article 4. For this purpose, the
Plan Administrator shall take into account any other such eligible plans
maintained by the County and shalt also take into account any other such
eligible plans for which the Plan Administrator receives from the
Participant sufficient information concerning his m her participation in
such other plan.
(b) Pre-Partugianon Teas. In applying Section 42, a year shall be taken
into account only if (i) the Participant was eligible to participate in the
Plan during all or a portion of the year; and (ii) Compensation deferred, if
any, under the Plan during the year was subject to the limitations
described in Section 4.1 or any other Plan limit requited by Code section
457(b).
(c) Pre-2002 C'ooidnnation )ems. For purposes of Section 4.2(b),
"contributions to Prc-2002 Coordination Plans" shall mean any employer
contribution, salary reduction or elective contribution under any Code
section 401(k) qualified cash or deferred arrangement, Code section
402(h)(1)(B) simplified employee pension (SARSEP), Code section
403(b) annuity contract, and Code section 408(p) simple retirement
account, or under any plan for which a deduction is allowed because of a
contribution to an organization described in Code section 501(c)(18),
DRAFT Dated July 29, 2021
including plans, arrangomcots or accounts maintained by the County or
any employer for whom the Participant performed services. However, the
contributions for any calendar year are only taken into account for
purposes of Section 4.2(b) to the extent that the total of such contributions
does not exceed the aggregate limit referred to in Code section 457(b)(2)
for that year. In applying the section 457(b)(2)(B) limitation for includible
compensation for years prior to 2002, the limitation is 33% of the
Participant's compensation includible in gross income.
(d) Disregard Excess Deferral. For purposes of Sections 4.1, 4.2 and 4.3, an
individual is treated as not having deferred compensation under a plan for
a prior taxable year to the extent excess deferrals under the plan are
distributed, as described in Section 4.6. To the extent that the combined
deferrals for pre-2002 years exceeded the maximum deferral limitations,
the amount is treated as an excess deferral.
4.6 Correction of Excess Deferrals. If the Deferred Compensation on behalf of a
Participant for any calendar year exceeds the limitations described in Sections 4.1,
42 and 4.3, or the Deferred Compensation on behalf of a Participant for any
calendar year exceeds the limitations described above when combined with other
amounts deferred by the Participant under another eligible deferred compensation
plan under Code Section 457(b) for which the Participant provides information
that is accepted by the Plan Administrator, then the Deferred Compensation, to
the extent in excess of the applicable limitation adjusted for any income or loss in
value, if any, allocable thereto, shall be distributed to the Participant.
4.7 Protection of Persons Who Serve In Uniformed Service. A Participant whose
employment with the County is interrupted by qualified military service under
Code Section 414(u) or who is on a leave of absence for qualified military service
under Code Section 414(u) may elect to have additional Deferred Compensation
made upon the resumption of employment with the County equal to the maximum
Deferred Compensation that the Participant could have elected during that period
if the Participant's employment with the County had continued (at the same level
of Compensation) without interruption or leave, reduced by Deferred
Compensation, if any, actually made for the Participant during the period of
l io't mi l_ta_; rc; v.r„_iute�. This right applies for five (5) years
following the resumption of employment (or, if sooner, for a period equal to three
(3) times the period of the interruption or leave).
ARTICLE V — DI STRI BUI IONS
5.1 Benefit Distributions. Upon ,-�,r.n, 5•g Severance from Employment with the
County, a Participant shall be entitled to receive a distribution of his or her
Account balance corder a form of distribution pemutted under Section 5.3, and
such distribution shall commence at the date provided in Section 5.2. A
DRAFT Dated July 29, 2021
Participant on a leave of absence shall not be deemed to have had a Severance
from Employment until the leave of absence expires and the Participant separates
from employment with the County.
5.2 Benefit C'omarencement Date. In accordance with and subject to Code Section
401(a) (9) and Section 5.4, a Participant (or his or her Beneficiary) after i b_;
Uc' Severance from Employment with the County shall be permitted to elect to
receive a distribution from his or her Account. The election shall be made in
accordance with procedures established by the Plan Administrator. Actual
distributions shall be made as soon as administratively practicable after a
Participant's proper election.
53 Forms of Distribution. In coordination with an election to commence benefits
under Section 5.2, a Participant (or Beneficiary) shall elect to receive payment in
one of the following distribution forms:
(a) lump sum payment;
(b) installment payments: or
(c) any other option i1�_�ri!tdzl.,tgthzted by the Plan Administrator, in its sole
and absolute discretion.
5A Minimum Distribution Rules.
(a) General Rules.
(1) The entire interest of the Participant will be distributed, or
conunenec to be distributed, not later than April 1 following the later of the
calendar year in which the Participant attains age 72 years or the calendar year in
which the Participant retires, (referred to herein as the "Required Beginning
Date)."
(b) Limitation of Distribution.
(1) Notwithstanding any other provision of the Plan, distributions shall
be made in a form under which:
(i) The amount distributed each year, commencing with the Required
Beginning Date, must be at least the level amount determined by applying
the Participant's entire interest to the purchase of an annuity contract
commencing payments at least annually on or before the Required
Beginning Date;
10
DRAFT Dated July 29, 2021
(it) if provision is made for the payment of a portion of the benefits to
a Beneficiary, the amount payable to the Participant will be paid at times
specified by the Secretary of the Treasury, which are not later than the
times determine under regulations issued pursuant to section 401(a)(9)(G)
of the Code pertaining to the minimum distribution incidental benefit
requirements; and
(iii) any amount not distributed to the Participant during his or her life
will be distributed after the death of the Participant, at least as rapidly as
the method being used as of the date ol'death.
(2) If distribution first commences after the Paticiparres death, the
Participant's entire interest must be distributed over a period not to exceed (i) the
Beneficiary's life or life expectancy, if the Beneficiary is the Participant's
surviving spouse and if distributions commence on or before the date the deceased
Participant would have attained age 70 V. years, (ii) the life expectancy of the
Beneficiary, if the Beneficiary is not the Participant's surviving spouse and if
distributions commence within one (1) year of the date of the Participant's death
in equal or substantially equal payments, m (iii) the lesser of five (5) years from
the date of the Participant's death or the Beneficiary's life expectancy, if
subsection (b)(i) and (ii) of this paragraph are inapplicable. For purposes of this
subsection, any amount paid to a child of the Participant will be treated as if it had
been paid to the surviving spouse if the remainder of the interest becomes payable
to the surviving spouse when the child reaches the age of majority.
(3) The Plan will apply the minimum distribution requirements of
Code Section 401(a)(9) pursuant to Treasury Regulations section t.401(a)(9)-1
through 1.401(a)(9)-6,. Thereafter, distributions under the Plan shall be made in
accordance with the requirements of section 401(a) (9) of the Code, including the
incidental death benefits requirement of section 401(a) (9), and Treasury
Regulations Sections 1.401(a) (9)-1 through 1.401(a) (9)-9, and such Code and
Treasury Regulation provisions shall override any distribution options under the
Plan that are inconsistent with such provisions. For purposes of this section, life
expectancies will be computed by use of the expected return multiples as
published in the applicable Treasury Regulations, using the calculation methods
required therein, and as described in the applicable regulations under section
401(a)(9) of the Code.
-0:C'ol :rS-'!;ki: tut!.t �::! Y.:II 'l� ,��r.L�n ,_i lur __, 11"J '!ricz c ._
nv'd '11,dl in I i-It 11;-
11
DRAFT Dated July 29, 2021
Hardshin Distributions. If, before his or her Severance from Employment, the
Participant has an unforeseeable emergency that is approved by the H2;i
Administrator as satisfying Section 5.?6, the Participant (but not a Beneficiary or
Alternate Payee) is entitled to receive a hardship Distribution (as a cash lump
sum) of the amount determined by the P.i Administrator to be the amount that is
reasonably needed to satisfy the emergency need.
3.69 Definition of Unforeseeable Emereencv. An unforeseeable emergency means a
severe financial hardship of the Participant resulting from:
(a) An illness or accident of the Participant or his Spouse or dependent (as
defined in section 152(a) of the Code);
(b) Loss of the Participant's or Beneficiary's property due to casualty; or
(c) Other similar extraordinary and unforeseeable circumstances arising as a
result of events beyond the control of the Participant or Beneficiary. The
imminent foreclosure of or eviction from the Participant's primary
residence, the need to pay for medical expenses, including non-reflmdable
deductibles, as well as for the cost of prescription drug medication or the
need to pay for the funeral expenses of a spouse or dependent may
constitute an unforeseeable emergency. Except in extraordinary
circumstances, the purchase of a home and the payment of college tuition
we not unforeseeable emergencies under this section.
Unforeseeable Emerecncv Distribution Standard. Whether a Participant or
Beneficiary is faced with an unforeseeable emergency, as defined in Section SJC,
permitting a Distribution under this Article V is to be determined based on the
relevant facts and circumstances of each case, but, in any case, a Distribution on
account of unforeseeable emergency may not be made to the extent that such
emergency is or may be relieved through reimbursement or compensation from
insurance or otherwise; by liquidation of the Participant's assets, to the extent the
liquidation of such assets would not itself cause severe financial hardship; or by
cessation of deferrals under the Plan.
5,V '? Distribution Necessary to Satisfv Emerecncv Need Distributions because of an
unforeseeable emergency must be limited to the amount reasonably necessary to
satisfy the emergency need (which may include any amounts necessary to pay any
federal, state, or local income taxes or penalties reasonably anticipated to result
from the Distribution).
Administrator Mod Determine Hardship. The I!,,in Administrator must
determine whether the circumstances of the Participant constitute an
unforeseeable emergency within the meaning of Section 5.7 Following a
uniform procedure, the_ Pi;u� Administrator's determination shall consider any
12
DRAFT Dated July 29, 2021
facts or conditions deemed necessary or advisable by the Pkin Administrator, and
the Participant shall be required to submit any evidence of his circumstances that
the ='man Admunistrator requires. The determination as to whether the Participant's
circumstances are a case of hardship shall be based on the facts of each case;
provided, however, that all determinations as to hardship shall be uniformly and
consistently made according to the provisions of the Plan for all Participants in
similar circumstances. The NanAdministrator may require that any statement
made as part of a claim for a hardship Distribution be made under penalties of
perjury. The R.m_Administrator may (but need not) require that any statement
made as part of a claim for a hardship Distribution be signed in the presence of a
notary public.
Rollover Distributions.
(a) A Participant or the surviving spouse of a Participant (or a Participant's
former spouse who is an Alternate Payee under a Qualified Domestic
Relations Order) who is entitled to an eligible rollover distribution may
elect, at the time and in the manner prescribed in the sole and absolute
discretion of the Plan Administrator, to have all or any portion of the
distribution paid directly to an eligible retirement plan specified by the
Participant in a direct rollover. The Plan Administrator may require any
documentation that it deers necessary to effectuate the rollover.
(b) Distributions to Inherited Individual Retirement Plan of Nonspouse
Beneficiaty. With respect to any portion of a distribution made after
December 31, 2009 to an individual who is the destgnated beneficiary (as
defined by Code Section 401(a)(9)(Ef of a deceased Participant and who
is not the surviving spouse of the.d_�, , ;,d Participant, if a direct rollover
is made to an individual retirement plan (as defined in Code Section
402(c)(8)(B)(i) and (it)) of the non -spouse designated beneficiary, such
individual retirement plan shall be treated as an inherited individual
retirement account or inherited individual retirement annuity, pursuant to
Code Section 401(c)(1 1).
(c) For purposes of this Section 5.1 _0, an eligible rollover distribution means
any distribution of all or any portion of a Participant's Account, except
that an eligible rollover distribution does not include (i) any installment
payment under Section 5.3 for a period of over ten (10) years or more; (it)
any distribution made under Section 5.6 as a result of an unforeseeable
emergency; or (iii) for any other distribution, if any of the distribution is a
required minimum distribution under Code section 401(a)(9). An eligible
retirement plan means an individual retirement account described in Code
section 408(a), ail individual retirement annuity described in Code section
408(b), a qualified trust described in Code section 401(a), an annuity plan
13
DRAFT Dated July 29, 2021
described in Code sections 403(a) m 403(b), or an eligible governmental
plan described in Code section 457(b), that accepts eligible rollover
distributions.
(d) Upon the transfer of assets pursuant to this Section 5.110, the Plan's
liability to pay benefits to the Participant or Beneficiary under the Plan
shall be discharged to the extent of the amount transferred on behalf of the
Participant or Beneficiary. The Plan Administrator may require such
documentation from the receiving plan as it deems appropriate or
necessary to effectuate the transfer.
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\s it Ii,e af.e,:, .Zlc tit ,111 Ir (tlei
,l e;; t:,a•_rrtt�t t Plan, l::;t'ai.i %.1 shall he _itD d Dt 't_Ly_R„I_!
aq IW�,,-..r'r` arn.(`i;rnl i'I'ht, a
I J. U61C�n ,;lt ai;.dfli iajett Utt1•', ]'11 U;❑, •tl;'t!?; [__ DCh. 1:,t'9
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for src't; :L-;cn:l:, c� d:;il n:J ItcI CSG.
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k: I _rl�d ;tntit �L_r:)LLat_
a r_'__t' ot!i1, tn_titi ii_—i, =1e•: rit;. ` of mll,
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iwl ._a_,i.,.__.-a: ch_i, tri:l,i l r.fr_it i', -Ii)caicd ot:
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tl In... 111:1,. 1,::'i Pkr .,,0 t � •ti l;,r nr. •. � ,.. I` r _. II`" ti(:{"t;d}. .o::1 ro i 1 iru,f .
.d.: R.t,l :ut':,I,,.t •ad-, „mOiher :y_:h:. ,:lt,. ratj, dr
otnl:`i., •C.:bu1:I:Ie - t_. m_a tlt.,;ann-=l 1:. _, tc,l:_ %• ;n ci:__�: l_!-Ge �naat ;
14
DRAFT Dated July 29, 2021
vir'+'i '.�uii�r •..
_Vi_ltt,; _1s._ur_,I l:tilo,+�r_:i
ird.t ti• it.:t., �, ;�r�sii:aea Fo:il,i,_enunt tmds'i Ile dart be made•
n_r_, aa•d!?,'t __ _I'ai ,r+.!� _iin(_r• li;`tt_trt to
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iatit
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Au•__,x,:_u s; c�_.l mtn,l r,t,W to d;.:crl:tininu ,+; 1'I_:I c! the t:>!_1 aar(-_ ! t
_} .oh.-. i)nl_t 7.:.:.+a_,'=�! 3„-h •1r: eg.. ?r I'.a 6cmngi'c 7 tcsif7sa__ i'..th .fit ,_m(
d::ci:rru .._ ilaii i:ip::nt L!_,n _.,n_Ist:wl
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a;^y DEATH BENEFITS
647. _! Fonn and Amount of Death Benefits. Upon the death of a Participant, death
benefits shall be payable as follows.
(a) Death Prior to Bencyit Conmlencemrnt Date. If a Participant's death
occurs before Ills or her benefit commencement date, his or her
Beneficiary shall elect a benefit commencement date that is no later than
the later of (i) December 3l of the year following the year of the
Participant's death if distributions are to be made in installments, (f) fnr
non -installment distributions, the December 31 of the fifth year following
the year of the Participant's death or (iii) if the Beneficiary is the
Participant's spouse, December 31 of the year in which the Participant
would have attained age M4. A Beneficiary may elect to receive
distribution in a single lump sum, in installments based on life expectancy,
or as a rollover distribution in accordance with Section 5.1 -0, provided,
however, that a method of distribution must satisfy the requirements of
Code Sections 401(a)(9) and 457(d)(2) and applicable Treasury
Regulations thereunder. In the event that the Participant's estate is the
Beneficiary, payment shall be made to the estate in a lump sum, if the
Beneficiary survives the Participant but dies before the payment of death
IS
DRAFT Dated July 29, 2021
benefits has commenced or been completed, the remaumng balance of the
Account shall be paid to the beneficiary designated by the Beneficiary,
and if no such beneficiary was designated, then to the Beneficiary's estate.
Any payment under this paragraph shall be made in a manner consistent
with such procedures adopted by the Plan Administrator.
(b) Death After Benefit Commencement Date. If a Participant's death occurs
after he/she has begun to receive benefits under a benefit payment option,
the remaining payments, if any, shall be payable to the Participant's
Beneficiary in a single lump sum or as a rollover distribution in
accordance with Section 5.1_0, with such payment being made as soon as
administratively practicable following the Participant's death. in no event
shall the County or Plan Administrator be liable to the Beneficiary for the
amount of any payment made in the name of the Participant before the
Plan Administrator receives proof of death of the Participant. If the
Beneficiary dies before completion of such payments, the remaining
balance of the Account shall be paid to the beneficuiiy designated by the
Beneficiary, and if no such beneficiary was designated, then to the
Beneficiary's estate. Any payment under this paragraph shall be made in
a manner consistent with such procedures adopted by the Plan
Administrator.
,i 27't Beneficiary Designation.
(a) In General. The Participant shall file with the Plan Administrator a
designation of primary and contingent Beneficiary which shall indicate the
person or persons who shall receive benefits payable under this Plan upon
the Participant's death. hi the case of multiple Beneficiaries, unless
otherwise provided in the Beneficiary designation form, each designated
Beneficiary who survives the Participant shall be entitled to an equal share
of the benefit payable after the Participant's death. The Participant accepts
and acknowledges the burden for executing and filing a proper Beneficiary
designation with the Plan Administrator.
(b) Change in Benefciarr Designation. Any change in Beneficiary
designation shall become effective only upon receipt of the form by the
Plan Administrator whether or not the Participant is living at the time of
such receipt. Any change of Beneficiary designation filed in proper form
with the Plan Administrator shall revoke all prior Beneficiary
designations.
tc1 ,ldeyuacl, of Benefeiary Designation. The Plan Administrator shall
determine the acceptability of a Beneficiary designation or change of
Beneficiary designation. The Plan Administrator shall notify the
Participant if the Beneficiary designation is not acceptable and inform the
16
DRAFT Dated July 29, 2021
Participant of the method of correction. A corrected Beneficiary
designation shall be effective as of the date on which the Participant first
attempts to designate such individual.
(d) Death Without Benejiciary Designation. if the Participant fails to
designate a Beneficiary or if every Beneficiary designated by the
Participant has predeceased the Participant, the Participant's default
beneficiary will be (a) the Participant's surviving spouse, if any, or (b) if
there is no surviving spouse, the Participant's estate.
(e) Presumption that a Designation is Revoked by Divorce. In the event of a
divorce, it is presumed that the Participant intended to revoke any
designation of his divorced spouse as the Participant's designated
Beneficiary, unless
(1) The Judgment of Divorce affirmatively states that the divorced
spouse will remain the designated Beneficiary, or
(ii) An—T4� , Domestic Relations Order affirmatively
states that the divorced spouse will remain the designated
Beneficiary, or
(iii) The Participant completes a new designation of Beneficiary after
entry of the Judgment of Divorce, which names the divorced
spouse as the Participant's designated Beneficiary.
VQ—QUALIFIED DOMESTIC RELATIONS ORDERS
I Oualified Domestic Relations Orders. The •_�,_., r and the Plan
Administrator shall comply with any "Qualified Domestic Relations Order" as
defined in Code Section 414(p) (a "QDRO"), including an order requiring the
distribution of a Participant's benefits to an Alternate Payee in advance of the
general mlcs for distributions set forth herein. To the extent required in a QDRO,
any portion of a Participant's benefits may be paid to (or a portion of a
Participant's Account may be set aside for the benetit of) the Participant's spouse,
former spouse or other .Alternate Payee. Upon receipt of notification of any
judgment, decree or order which relates to the provision of child support, alimony
payments, or marital property rights of a spouse, former spouse, child, or other
dependent of a Participant and which is made pursuant to a state domestic
relations and/or commmnity property law ("Court Order"), the Plan Administrator
shall, within a reasonable period after receipt of such Court Order, determine
whether it satisfies the requirements of a QDRO.
(a) Segregation of Account, /'gvmett. The Plan Administrator may segregate
in a separate account in the Plan, the amounts which would be payable to
17
DRAFT Dated July 29, 2021
the Alternate Payee pursuant to a QDRO. Such amounts may be paid to
the Alternate Payee in advance of the general distribution rules under this
Plan.
(b) Status, Rights and Privileges of Alternate Pavees. Except as otherwise
provided herein, an Alternate Payee shall have the status and rights of a
Beneficiary under this Plan to the exclusion of all other rights associated
with Participants under ties Plan, including the right to receive payment
under the terms of the QDRO at the time and manner specified in such
QDRO (Provided, however, that such payment may not be made in a form
which is not available to Participants under the Plan), and the right to
direct the manner in which Plan amounts allocated to such Alternate Payee
are invested.
(c) QDRO Expenses. Any expense related to the administration of a QDRO
shall be assessed against the Participant's Account._nt
ARAI'�-[ ter V-H F:_IRTiCLE d—PLAN LOANS
949,i Loans. A Participant who is an active Employee of the County may apply for and
receive a loan from his or her Account as provided in this Article ��8. As
determined in the sole and absolute discretion of the Plan Administrator, loans
shall not be made in an amount less than two thousand dollars ($2,000.00). A
Participant shall not be permitted to have more than two (2) loans outstanding at
any time. Loans shall be made in accordance with procedures established in the
sole and absolute discretion of the Plan Administrator.
Maximum Amount of T.nm. No loan to a Participant may exceed the lesser of:
(a) $50,000, reduced by the excess to any of the outstanding balance on any loan
from the Plan to the Participant during the one-year period ending on the day
before the date the loan is made over the outstanding balance of loans from the
Plan on the date such loan was made (not tatting into account any payments made
during such one-year period), or (b) the greater of (1) one half of the present value
of the Participant's Account balance (as of the Valuation Date immediately
preceding the date on which the loan is approved by the Plan Administrator), or
(n) $10,000.00.
For purposes of this Section 9').2, any loan from any other plan maintained by
the County shall be treated as if it were a loan made from the Plan, and the
Participant's interest under any such other plan shall be considered an interest
under this Plan; provided however, that the provisions of this paragraph shall not
be applied so as to allow the amount of a loan under this Section 8' t 2 to exceed
the amount that would otherwise be permitted in the absence of this paragraph.
18
DRAFT Dated July 29, 2021
94}) 3 Ternns of the Loan. The terms of the loan shall:
(a) require level amortization with payments not less frequently than quarterly
throughout the repayment period, except that alternative arrangements for
repayment may apply in the event that the borrower is on a bona tide
unpaid leave of absence for a period not to exceed one (1) year for leaves
other than a qualified military leave within the meaning of Code section
414(u) or for the duration of a leave which is due to qualified military
service;
(b) require that the loan be repaid within five (5) years unless the Participant
certifies in writing to the Plan Administrator that the loan is to be used to
acquire any dwelling unit which within a reasonable period of time (as
determined in the sole and absolute discretion of the Plan Administrator)
is to be used (determined at the time the loan is made) as the principal
residence of the Participant; and
(c) provide for a reasonable rate of interest to be determined in the sole and
absolute discretion of the Plan Administrator.
g: 9 4 Security for Loan: Default.
(a) Security. Any loan to a Participant under the Plan shall be secured by the
pledge of the portion of the Participant's interest in the Plan invested in
such loan.
(b) Default. Effective as of March 23, 2018, in the event that a Participant
fails to make a loan payment under this Article 8 by the end of the quarter
following the quarter in which such payment is due, a default on the loan
shall occur. In the event of such a default: (i) all remaining payments on
the loan shall be immediately due and payable; and (ii) the Participant
shall be permanently ineligible for any future loans from the Plan until
such time as the Participant repays the full amount of the defaulted loan
plus all accrued interest. In case of any default on a loan to a Participant,
the Plan Administrator shall apply the portion of the Participant's interest
in the Plan held as security for the loan in satisfaction of the loan on the
date of Severance from Employment with the County. In addition, the
Plan Administrator shall take any legal action it shall consider necessary
or appropriate to enforce collection of the unpaid loan, with the costs of
any legal proceeding or collection to be charged to the Account of the
Participant.
(c) Death. Notwithstanding any other provision of the Plan to the contrary, in
the event a loan is outstanding hereunder on the date of a Participant's
death, his or her estate shall be his or her Beneficiary as to the portion of
19
DRAFT Dated July 29, 2021
his or her interest in the Plan invested in such loan (with the Beneficiary or
Beneficiaries as to the remainder of his or her interest in the Plan to be
determined in accordance with the otherwise applicable provisions of the
Plan).
8-5t, � Renavment. to the sole and absolute discretion of the Plan Administrator, a
Participant may be required, as a condition to receiving a loan, to comply with
certain arrangements prescribed by the Plan Administrator. Repayments of a loan
shall be made in equal amounts (comprised of both principal and interest) with the
first payment to be made as soon as practicable after the loan Rinds are disbursed;
provided however, to the sole and absolute discretion of the Plan Administrator, a
Participant may prepay the entire outstanding balance of his or her loan at any
time. Loan repayments shall be characterized as self -directed investments in
accordance with Section 1:_1.2.
ARTICLE-Tk.Mk'i E ,'t Pi X — TRANSFERS AMONG PLANS OF THE
ROLLOVERS INTO THE PLAN
4-1-1 0 i Incomine Transfers. Subject to the requirements of Code Section 457(e)(10), any
Treasury Regulations issued thereunder, and the procedures established by the
Plan Administrator, effective as of April I, 2008 the i_ eatY an n a ink, trat,trat,.. may
accept a transfer from another eligible deferred compensation plan maintained by
the t'�»_(.,_Fmplayc^r and credit such transfer to a Participant's Account under the
Plan if such transfer complies with the following rules:
(a) The Employer ?:n.ty, other plan provides that such transfer will be
made;
(b) The Participant whose deferred amounts are being transferred will have an
amount immediately after the transfer at least equal to the deferred amount
mmrediately before the transfer; and
(c) The Participant whose deferred amounts are being transferred is not
eligible for additional annual deferrals in the Plan unless the Participant is
9.20 ;.Rollovers. An eligible rollover distribution, excluding any portion that consists of
after-tax contributions or Roth deferrals, may be accepted from an eligible
retirement plan and credited to a Participant's Account under the Plan. The Plan
Administrator may require such documentation from the distributing plan as it
deems necessary to effectuate the rollover in accordance with Section 402 of the
Code and to confirm that such plan is an eligible retirement plan within the
meaning of Section 402(c)(8)(B) of the Code. The Plan shall separately account
20
DRAFT Dated July 29, 2021
(in one or more separate accounts) for eligible rollover distributions from any
eligible retirement plan.
(a) Definitions:
(i) An eligible rollover distribution means any distribution of all or
any portion of a Participant's benefit under another eligible
retirement plan, except that an eligible rollover distribution does
not include (1) any installment payment for a period of ten (10)
years or more, (2) any distribution made as a result of an
unforeseeable emergency or other distribution which is made upon
a hardship, or (3) for any other distribution, the portion, if any, of
the distribution that is a required minimum distribution under Code
Section 401(a)(9).
(ri) Art eligible retirement plan means an individual retirement account
described in Code Section 408(a), an individual retirement annuity
described in Code Section 408(b), a qualified trust described in
Code Section 401(a), an annuity plan described in Code Sections
403(a) or 403(b), or an eligible governmental plan described in
Code Section 457(b).
A#UT-iCLEXA€VTR ':'',-F-TRUST
4+1, i :__1 General. All contributions and transfers to the Plan, all property and rights
purchased with such amounts, and all income attributable to such amounts, shall
be held and invested in the Trust in accordance with the terns of this Article and
Article 11, unless a separate written Trust Agreement that constitutes a valid trust
under the laws of the State of Michigan is adopted. As of March 26, 2018, the
Oakland County Retirement and Deferred Compensation Board is the Trustee or
The Trustee shall ensure that all investments, amounts, property, and
other rights held under the Trust are held for the exclusive benefit of the
Participants and their Beneficiaries and to defray any reasonable expenses of the
Plan and/or the Trust. It shall be impossible, prior to the satisfaction of all
liabilities with respect to the Participants and their Beneficiaries, for any part of
the assets and income of the Trust to be used for, or diverted to, purposes other
than for the exclusive benefit of the Participants and their Beneficiaries.
44-21Custodial Accounts and Annuitv Contracts. If assets are held in a
custodial account or annuity contract, the term "Trust Agreement" shall also mean
the custodial account agreement or annuity contract.
U)-q -1 Trustee Powers
21
DRAFT Dated July 29, 2021
(a) The Trustce has full discretion and authority to invest and re -invest the
assets of the Plan in accordance with Article 1:1'44.
(b) in exercising its discretionary authority with respect to the management of
the assets of the Plan, the Trustee shall exercise the care, skill, prudence
and diligence, under the circumstances then prevailing, that an individual
of prudence acting in a like capacity and familiar with such matters would
use in the conduct of an enterprise of like character and similar objectives.
(c) The Oakland County Retirement and Deferred Compensation Board may
..aci th= _ . p � a , _� empoay (i) investment counsel to advise the
Perin, _o_Board in the making and disposition of investments; (ii) record
keepers and third -party administrators to provide recordkceping services
for the assets of the Plan; (iii) custodians; (tv) legal counsel, and (v) such
other advisors that the Board determines are necessary or
prudent to engage in exercising its authority as Trustee.
% d"E iC 1.. INVESTMENT POWERS
,T' -i__:_ _ _ Investment Powers. hi accordance with the Investment Policy Statement
prepay, id,c.ucd by the P, 1;, i �-m Board, the Trustee shall have loll discretion and
authority to invest the Trust's assets, except with respect to assets under the
control or direction of an investment manager or with respect to assets subject to
Section l31?.
I-1-2. _' 2 Self Directed investments. To the extent that a Participant's Account has
been designated as self -directed, a Participant may, subject to procedures
established and applied in a uniform, nondiscriminatory manner; elect to direct
the Trustee to invest his of her Account in specific assets or funds. hr the absence
of an election, Participant Accounts shall be invested in an "age based lifestyle
fund" to be selected in the sole and absolute discretion of the "- �.i rr, n; m Board.
The portion of a Participant's Account which is self directed by the Participant
shall not share in 'frost net earnings or net losses, but shall be charged or credited
as appropriate with net earnings, losses, appreciation and depreciation attributable
to such investment activities directly related to the Participant Account that is
self -directed.
The Trustee shalt follow the directions given by a Participant subject to the
limitations contained in this Plan. Neither the Trustee nor arry other person shall
be wider a duty to question any direction of the Participant, or make any
suggestions to the Participant in connection with any direction. The Trustee shall
comply as promptly as practicable with directions given by a Participant.
All self -directed Participant Accounts shall be subject to the following limitations:
22
DRAFT Dated July 29, 2021
(a) The h._ti:_Board or Trustee shall not be responsible or liable for any
loss or expense which may arise from or result from the compliance with
any Participant direction, not shall the Board or Trustee be liable for any
loss or expense which may result from either the Board's or the Trustee's
refusal or failure to comply with any Participant direction.
(b) The !:I_�nzm v, Board shall establish rules and procedures limiting the
investment vehicles which may be selected by Participants, provided
however, that such rules and procedures shalt be applied in a uniform and
nondiscriminatory manner. The Board shall have the express
power to refuse any investment direction which would be administratively
burdensome or which the i,_',i r,.c Board believes, in its sole and
absolute discretion, would constitute a prohibited transaction as defined to
Code section 4975, which would generate unrelated business income or
unrelated debt financed income to the Plan in would otherwise be
improper by virtue of any applicable law.
(c) All expenses incurred by the Trust or Plan pursuant to a Participant's
investment directions, including but not limited to brokerage fees, transfer
taxes, state and federal income taxes arising from unrelated business
taxable income or any other tax of any kind whatsoever which may be
levied or assessed under existing or future laws upon or in respect to a
Participant's Divestment directions or any other incidental expenses shall
be paid solely with funds from the Account of such Participant
(d) No Participant shall have the right to elect to have the Trustee purchase an
insurance contract on his or her life for his or her Account, except those
certain life insurance contracts purchased prior to January t, 1989
-f tL 1 _1 Investment Manager. In the event that the Trustee appoints an investment
manager for all or a portion of the Trust, the following shall apply
Fa) T,e nlan-,lc-tminis*A.^ll-ANk{yfhe-44r �. o`'-�tx�;;a - and ;IF
tltertk4e4hat�nttxetbetvas;�T`.:zFrve-
b ; I_The investment manager shall have the sole responsibility, duty and power
to manage and direct the Trust I..,_ assigned to ii1noi.
_The investment manager may exercise his authority through procedures
agreed upon with the Trustee and in accordance with all applicable laws.
44-.411-' _ Statutory Authorities. Notwithstanding any other provision of the Plan to
the contrary, the Trust's assets shall be invested in accordance with the applicable
provisions of Code section 457 (and the regulations thereunder) and Michigan
23
DRAFT Dated July 29, 2021
Compiled Laws sections 38.1132-38.1141 (Public Employee Retirement System
Investment Act; Public Act 314 of 19f-75, a= .u_:mdx_).
A 4r'�'T,t��--.-, �,a,�T z' �'-°.-}±,R I BG"LE _NDIJ — PLAN ADMINISTRATOR POWER AND
DUTIES
4-24: A,1 Duties and Resnonsibillhes o! -the Plan 4dnarat �4o—the
Ad „i_';a�.,=*a ,�fr" ^ ^` t1w42fr The powers, duties and responsibilities of the Plan
Administrator, in' its sole and absolute discretion, with , respect to the
administration of the Plan, shall include but not be limited to the following:
(a) To determine and authorize payment of Plan benefits;
(b) To make, amend and enforce all necessary rules and regulations regarding
the Plan's administration;
(c) To resolve any and all issues and problems as may arise in connection
with the interpretation, construction and administration of the Plan;
(d) To direct the recordkeeper to invest Plan assets in accordance with each
Participant's directions and the Plari s tens;
(e) To ensure that the Plan complies with all Federal, State and local statutory
and regulatory agency requirements;
(1) To cause the preparation and tiling of all required agency reports;
(g) To establish and maintahi appropriate books and records for the Plan;
(h) To drat} and disseminate information regarding the Plan-,
(i) To manage other duties assigned to him or bet by the R•;: s: r-„�nc-Board.
41r;_- Binduie Action. Any decision or action of the Plan Administrator
concerning or in respect to any issue or problem arising out of of in connection
with the construction, interpretation, administration and application of the Plan,
including any rules and regulations promulgated hereunder, may, in the
-'.rLi_�_:nct,, Board's sole discretion be appealable to the i__i�<<,r-_�.: Board.
1,2-3: Cost. The Plan Administrator shall pay Plan costs as
o cyj)o,_;cd•'�.�aTn-R„^' by the (' t,mn , � Board in accordance with Section
14. < "J.
I s —PLAN ADMINISTRATION
24
DRAFT Dated July 29, 2021
4441-I.: Non-Assieuability. Except as provided in Sections 1.1-12 and Article VII ,
the interests of each Participant or Beneficiary under the Plan are not subject to
claims of the Participant's or Beneficiary's creditors; and neither the Participant
nor any Beneficiary shall have any right to sell, assign, transfer, or otherwise
convey the light to receive any payments hereunder or any interest under the Plan,
which payments and interest are expressly declared to be non -assignable and non-
transferable.
kt:21d i FRS Lew_ IVea- '' +...,a „ Seeii o 1x. , «_he Plan Administrator may
pay from a Participant's or Beneficiary's Account the amount that the Plan
Administrator finds is lawfully demanded under a levy issued by the Internal
Revenue Service with respect to that Participant or Beneficiary or is sought to be
collected by the United States Govermnent under a judgment resulting from an
unpaid tax assessment against the Participant or Beneficiary.
4-3.31 L, Pavments to Minors and Inconnetents. If a Participant or Beneficiary
entitled to receive any benefits hereunder is a minor or is adjudged to be legally
incapable of giving valid receipt and discharge for such benefits, or is deemed so
by the Plan Administrator (m its sole and absolute discretion), benefits will be
paid to such person as the Plan ea„: ^ ^1y-ie_cli;_designatcr for the
benefit of such Participant or Beneficiary. Such payments shall be considered a
payment to such Participant or Beneficiary and shall, to the extent made, be
deemed a complete discharge of any liabifity for such payments under the Plan.
13-1-t,J Procedure When Distributee Cannot Be Located. The Plan Administrator
shall make all reasonable attempts to determine the identity and address of a
Participant or a Participant's Beneficiary entitled to benefits under the Plan. For
this purpose, a reasonable attempt means (a) the mailing by certified mail of a
notice to the last known address shown on the County's or die Plan
Administrator's records, (b) notification sent to any governmental authority with a
forwarding program, (c) a search of public records using free electronic search
tools, and (d) if circumstances warrant it, use a conmiercial locater service, with
the cost of such service being charged to the Participant's account If the Plan
Administrator is unable to locate a person entitled to benefits hereunder, or if
there has been no claim made for the benefits, the Participant's Account shall
remain in the Plan. Any distribution check that was not cashed shall be deposited
into the Participant's account to be held until the Participant, or if the Participant
is deceased, the Participant's Beneficiary can be located.
441-; 1 _i. _ Tax Benefits. The County does not and shalt not guarantee any tax
benefits or advantages under the Plan.
4-1,6 s i, Riehts of Particinants. Each Employee, upon having elected to become a
Participant, shall be deemed to have assented to the terms and conditions of the
25
DRAFT Dated July 29, 2021
Plan. Each Participant shall at reasonable times be allowed to examine his or her
particular Account to determine its status and condition.
', 3-,71; % Termmation or Amendment. Subject to the applicable requirements of the
Code and laws of the State of Michigan, the County reserves the right at any time
to amend or terminate the Plan without the consent of any Participant or
Beneficiary. Except as may be required to maintain the status of the Plan as an
eligible deferred compensation plan under Code Section 457 or to comply with
other applicable laws, no amendment, modification or termination shall impair
any individual's right to benefits under the Plan or expand the County's obligation
to provide benefits with respect to amounts previously credited to Participants'
Accounts.
4-3-91 i `, Conformity with Internal Revenue Code Section 457. The Plan shall be
operated and administered consistent with Code Section 457 and all applicable
regulations. Such authorities shall be controlling as to any inadvertent
inconsistencies which may occur in the Plan's provisions.
}-�,<t -Employment. Nothing contained in this Plan shall be deemed to give any
Participant or Employee the right to be retained in the service of the County or to
interfere with any right of the County to discharge any Participant or Employee at
any time regardless of the effect which such discharge shall have upon him or her
as a Participant in the Plan.
-13-1A1- lu Construction. The Plan shall be construed under the laws of the State of
Michigan and in conformity with the requirements of Code Section 457 and all
regulations thereunder applicable to eligible deferred compensation plans. Article
headings are for convenience only and shall not be considered as part of the terms
and provisions of the Plan. Words in the masculine gender shall include the
feminine, and the singular shall include the plural, and vice versa, unless
otherwise qualified by the context.
!A 11 H_- I Binding Contract. The terms of the Plan, as duly amended from time to
time, shall constitute a contract between each Participant and the County and shall
be binding, as applicable, upon their heirs, administrators, trustees, successors,
assigns, and Beneficiaries.
k3-I-211 - Plan Expenses The expenses of administering the Plan and Trust,
including (i) expenses incurred by the llcmcm,,,rd Board in the administration of
the Plan and Trust, (it) fees and expenses approved by the t?-::�<:� r.; Board for
investment advisory, custodial, recordkeeping, and other Plan administration and
communication services, and (iii) any other expenses or charges allocable to the
Plan or the Trust that have been approved by the _ a Board shall be
charged to the Trust; provided however, the ? _,,wn. Board, in its sole and
absolute discretion, may charge an individual Participant's Account for expenses
26
DRAFT Dated July 29, 2021
incurred by the Plan on behalf of the Participant (including, but not limited to,
expenses incurred by the Plan in determining the status of a Qualified Domestic
Relations Order or in preparation of loan documents). Brokerage fees, transfer
taxes, and any other costs incident to the purchase or sale by the Trust of
securities or other investments shall be deemed to be part of the cost of such
securities or investments or deducted in computing the sales proceeds therefrom
and shall be accounted for accordingly.
!M1- 1 Right to Suspend Benefits and Correct Errors. The Plan Administrator
shall take such steps as are considered necessary and appropriate to remedy any
inequity that results from incorrect information received or communicated in good
faith or as the consequence of an administrative error. The Plan Administrator
may suspend the payment until satisfied as to the correctness of the payment or
the person to receive the payment or to allow filing in any court of competent
jurisdiction of a suit in such form as the Plan Administrator considers appropriate
for a legal determination of the benefits to be paid and the persons to receive
them. The Plan Administrator specifically reserves the right to correct errors of
every sort, and the Participant hereby agrees as Participant or on behalf of any
Beneficiary or Beneficiaries to any method of error correction as the Plan
Administrator shall specify The objective of any such method of error correction
shall be, to the extent reasonably possible, to adjust the Account of the Participant
by reversing transactions or taking other actions to approach the situation that
would have existed if the error had not been made. In the course of correcting an
error, any amounts that are removed from a Participant's account and not owed to
a Participant shall be allocated to a suspense account and used to offset future
Employer contributions. The Plan Administrator shall also be authorized to
recover any payment made in error including the right to make deductions from
future benefits.
,'.d Reliance on Electronic Instructions, Directions, Signatures, Contracts and
Records. For all purposes under the Plan, the Plan Administrator and the County
may (but are not required to) give the same effect to electronic instructions,
directions, signatures, contracts, records or similar communications (collectively,
"records and signatures") as it would give to written records and signatures, and
the Plan Administrator's and the County's actions in so doing shall be protected
to the same extent as if such electronic records and signatures were, in fact, in
written form. Any such electronic records and signatures shall be retained and
provided by the Plan Administrator and/or the County in accordance with
applicable law. For all purposes under the Plan, the term "electronic" or
"electronically" shall mean relating to technology having electrical, digital,
magnetic, wireless, optical, electromagnetic, or similar capabilities.
43,4414.i:- _ Communications from Participants. All enrollments, elections,
designations, applications and other communications by or from an Employee,
27
DRAFT Dated July 29, 2021
Participant, Beneficiary, or legal representative of any such person regarding that
person's rights under the Plan shall be made in the form and manner established
by the Plan Administrator and shall be deemed to have been made and delivered
only upon actual receipt by the person designated by the Plan Administrator to
receive such communication. Neither the Plan Administrator nor the County shall
be required to give effect to any such communication that is not made on the
prescribed form and in the prescribed manner and that does not contain all
information called for on the prescribed form. The County shall promptly furnish
the Plan Administrator or its designee a copy of any such communication that is
delivered or transmitted to the County.
1-3, 161- I�, Communications to Participants. All notices, statements, reports, and
other communications from the Plan Administrator or the County to any
Employee, Participant, Beneficiary, or legal representative of any such person
shall be deemed to have been duly given when delivered electronically, or when
mailed by first class mail, to such person at his or her last mailing address
appearing on the Plan's records.
'-. 7i 7 Time Periods. As necessary or desirable to facilitate the proper
administration of the Plan and consistent with the requirements of Code section
457, the Plan Administrator may further restrict the time periods during which a
Participant or Beneficiary is required to make any election under the Plan,
including the making or aruendmg of a Deferred Compensation Agreement, the
making or amending of investment option selections, the election of distribution
commencement dates or distribution forms.
-1-3:-t-8I i,, Reliance on Data and Consents. The County, the Plan Administrator, and
all other persons or entities associated with the operation of the Plan, the
adrimustration management of its assets, and the provision of benefits thereunder,
may reasonably rely on the truth, accuracy and completeness of all data provided
by a Participant, and/or Beneficiary, including, without limitation, data with
respect to age, health and marital status. Furthermore, the County, the Plan
Administrator, and all persons identified above may reasonably rely on all
consents, elections and designations filed with the Plan or those associated with
the administration operation of the Plan by any Participant or Beneficiary, or the
rl_representatives of such persons without duty to inquire into the genuineness
of any such consent, election or designation. None of the aforementioned persons
or entities associated with the admmistrationopoottion of the Plan, its assets and
the benefits provided under the Plan shall have any duty to inquire into any such
data, and all may rely on such data being current to the date of reference. It shall
be the duty of the Participant or Beneficiary to advise the appropriate parties of
any change in such data. The Plan Administrator shall not be liable for the
consequences of such change in data.
28
DRAFT Dated July 29, 2021
i B Tax Conseuuences. SAtb�e., n�f `='.ic:' '?.'-.3-4The
County does not represent or guarantee that any particular Federal or State
income, estate, payroll, personal property or other tax consequences will occur
because of the Participant's or Beneficiary's participation in this Plan. The
Participant shall be responsible to obtain appropriate advice regarding all
questions related to Federal, State or local income, estate, payroll, personal
property or other tax consequences arisrug from partictpation in this Plan
?.?o i t '+', Withholding: Pavroll Taxes. The trustee or custodian shall be entitled to
withhold from payments or benefits hereunder any income tax or payroll taxes
required to be withheld from such payments under local, state or federal law.'
4--� _t - : i Eoual Access to Benefits. Riehts and Features. .Any determination made
by the County with respect to the availability of benefits, rights and features under
this Plan shall apply on a non-discriminatory basis allowing equal access for all
Participants: provided, however, that such access may be limited by the terms of a
collective bargaining agreement or individual employment contract.
Entire Aa-ccment. This Plan and all properly adopted amendments to the
Plan shall govem the provision of deferred compensation benefits pursuant to
Code Section 457(b). No other instrument, communication statement of any sort
shall modify this Plan in any way or be relief upon the parties to this Agreement.
4 -.°-31 Claims Procedures. Any person claiming a benefit, requesting an
interpretation or ruling under the Plan, or requesting information under the Plan,
shall present his or her request in wntmg to the Plan Administrator. Any dispute
over payment from Accounts under the Plan shall be resolved by the Plan
Administrator pursuant to its written claims procedures Such claims procedures
shall comply with applicable state_ s,i tw r laws including, but not limited to,
civil service rifles and applicable collective bargaining agreements.
(a) Initial Clams. In order to request a benefit to "Claim"), a Participant or
Beneficiary under the Plan (a "Claimant") or his duly authorized
representative must file such Clams in accordance with procedures
established by the Plan Administrator.
(b) Initial Decision
(i) Time Limit. The Plan Administrator shall decide upon a Claim
and notify the Claimant of the decision within a reasonable period
of time after receipt of a Claim; provided however, that such
period shall in no event exceed ninety (90) days, unless special
circumstances require an extension of time for processing. if such
an extension of time for processing is required, then the Claimant
shall, prior to the termination of the initial ninety (90) day period,
29
DRAFT Dated July 29, 2021
be furnished a written notice indicating such special circumstances
and the date by which the Plan Administrator expects to render a
decision. In the case of an extension, the Claimant shall receive a
written determination regarding the Claim no later than ninety (90)
days after the end of the initial ninety (90) day period.
(ii) Notice of Denial. If time Claim is wholly or partially denied, then
the Plan Administrator shall furnish to the Claimant, within the
time limit applicable under w'-)E__; u_:pi; ;'_164) above, a written
notice setting forth in a manner calculated to be understood by the
Claimant:
(A) The specific reason or reasons for such denial;
(B) Specific reference to the pertinent Plan provisions on which
the denial is based;
(C) A description of any additional material or information
necessary for the Claimant to perfect his Claim and an
explanation of why such material m information is
necessary; and
(D) Appropriate information as to the steps to be taken if the
Claimant wishes to submit his Claim for review pursuant to
Section 1-3.2R-, including notice of the applicable time
limits set forth in Section 1_-12iW(c)(1).
1 !4.24 Claim Review Procedure.
(a) Claimant's Rights. If a Claim is wbolly or partially denied under Section
1"t3.214, the Claimant or his duly authorized representative shall have the
following rights:
(1) To obtain, subject to Brae_;_ "(b) below, a full and fair
review;
(ii) To obtain, upon request and free of charge, reasonable access to,
and copies of, all documents, records and other information
relevant to the Claimant's Claim;
(rii) To submit written comments, documents, records and other
information relating to the Claim; and
(iv) For a review that takes into account all comments, documents,
records and other information submitted by the Claimant relating
30
DRAFT Dated July 29, 2021
to the Claim, without regard to whether the information was
submitted or considered in the initial benefit determination.
(b) Regaest jbr Review.
(i) Filing. To obtain a review pursuant to _u_,- r�h (a) above, a
Claimant entitled to a review or his duly authorized representative
shall, subject to rul_tgi; _. ��=t I_�(i_2) below, tcqucst a review (a
"Request for Review") in accordance with procedures established
by the Plan Administrator.
(ii) Time Limits for Requesting a Review. A Request for Review must
be mailed or delivered within sixty (60) days after receipt by the
Claimant of the written notice of the initial denial of the Claim.
(c) DeCIS70a nn Review.
(i) Time Limit.
(A) If, pursuant to (b) above, a review is
requested, the Plan Administrator shall make a decision
regarding the Request for Review and notify the Claimant
of the decision within a reasonable period of time after the
receipt of the request; provided however that such period
shall in no event exceed one hundred eighty (180) days,
unless special circumstances require an extension of time
for processing. If such an extension of time for processing
is required, then the Claimant shall, prior to the termination
of the initial one hundred eighty (I80) day period, be
furnished a written notice indicating the special
circumstances and the date by which the Plan
Administrator expects to render a decision. In the case of
an extension, the Claimant shall receive a written
determination regarding the Request for Review no later
than sixty (60) days after the end of the initial one hundred
eighty (180) day period.
(ii) Notice of Decision. The Plan Administrator shall furnish to the
Claimant, within the time limit applicable under w,':r r�:;qd: (�
(if) above, a written notice setting forth in a manner calculated to
be understood by the Claimant:
(A) The specific reason or reasons for the decision on review;
31
DRAFT Dated July 29, 2021
(B) Specific reference to the pertinent Plan provisions on which
the decision on review is based;
(C) A statement that the Claimant is entitled to receive, upon
request and free of charge, reasonable access to, and copies
of, all documents, records, and other information relevant
to the Claimant's Claim; and
(D) A statement describing any voluntary appeal procedures
that may be offered by the Plan and the Claimant's right to
obtain the information about such procedures.
,,RT0i'Y,: '\V—SIGNATURES
This Plan document. a :+ in-lidtd,:_r,; „t:+teq, is signed on ill,, .:!.:y +:t
n}'
BOA ^444 OAKLAND COUNTY:
By:
PLAN ADMINISTRATOR:
By:
OAKLAND COUNTY RETIREMENT AND
DEFERRED COMPENSATION BOARD:
Bv:
32