HomeMy WebLinkAbout20073787.tiff RESOLUTION
RE: APPROVE AMENDMENT TO 401(K)SAVINGS PLAN AND AUTHORIZE CHAIR TO SIGN
- PRINCIPAL FINANCIAL GROUP
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS,the Board has been presented with an Amendment to the 401(K)Savings Plan
between the County of Weld, State of Colorado, by and through the Board of County
Commissioners of Weld County, and Principal Financial Group, effective July 1, 2007, with further
terms and conditions being as stated in said amendment, and
WHEREAS,after review,the Board deems it advisable to approve said amendment, a copy
of which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the Amendment to the 401(K) Savings Plan between the County of Weld,
State of Colorado, by and through the Board of County Commissioners of Weld County, and
Principal Financial Group be, and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized to
sign said amendment.
The above and foregoing Resolution was,on motion duly made and seconded, adopted by
the following vote on the 17th day of December A.D., 2007, nunc pro tunc July 1, 2007.
BOARD OF COUNTY COMMISSIONERS
� / E IS D COUNTY, COLORADO
ATTEST: fAaf�� 1p „ u�
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d E. Long, Chair
Weld County Clerk to the Board.. 40 ` .
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llian HHJe Pro-Tem
BY: (Yd •
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De y CI the Board �` V
William F. Garcia
APP EXCUSED
Robert D. Masden
jG` unty Attorney 'tin e/!-_
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Date of signature: lL
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2007-3787
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2007 INTERIM AMENDMENT TO COMPLY WITH
THE FINAL REGULATIONS UNDER CODE SECTIONS 415
AND 402A AND THE AMENDMENTS TO
THE FINAL REGULATIONS UNDER CODE SECTION 411(d)
This amendment of the Plan is adopted to comply with the requirements of the final regulations
under Code Sections 415 and 402A, and the amendments to the final regulations under Code
Section 411(d). This amendment is to be construed in accordance with such regulations. This
amendment shall continue to apply to the Plan, including the Plan as later amended, until such
provisions are integrated into the Plan or the provisions of this amendment are specifically
amended.
This amendment shall supersede any previous amendment and the provisions of the Plan to the
extent those provisions are inconsistent with the provisions of this amendment.
WELD COUNTY 401(K) SAVINGS PLAN
The Plan named above gives the undersigned the right to amend it at any time. According to that
right, the Plan is amended as follows:
FINAL REGULATIONS UNDER CODE SECTION 415
Except as otherwise provided, the provisions of the following sections shall be effective as of the
first day of the first Limitation Year beginning on or after July 1, 2007.
DEFINITIONS
This section modifies the DEFINITIONS SECTION of Article I.
Modification of the Definition of ANNUAL COMPENSATION. The definition of Annual
Compensation, if applicable, is modified effective as of the first day of the first Plan Year
beginning on or after July 1, 2007 as follows:
If the Compensation Year, Plan Year, and Limitation Year (as defined in the CONTRIBUTION
LIMITATION SECTION of Article III) are the same, Annual Compensation shall include amounts
earned but not paid during the Compensation Year solely because of the timing of pay periods
and pay dates, provided the amounts are paid during the first few weeks of the next
Compensation Year, the amounts are included on a uniform and consistent basis with respect to
all similarly situated Employees, and no Compensation is included in more than one
Compensation Year.
The final regulations allow this modification if the plan sponsor so chooses. This is an optional
change that is allowed but is not required by the final regulations. Mark the box below if this
modification is not to apply:
❑ Such amounts shall not be included.
Modification of the Definition of COMPENSATION. The definition of Compensation is modified
effective as of the first day of the first Plan Year beginning on or after July 1, 2007 as follows:
If the definition of earnings in the definition of Compensation is defined as "wages, salaries, and
fees for professional services, ,"the definition of earnings is modified as follows:
"Earnings" in this definition means wages, salaries, and fees for professional services and other
amounts received (without regard to whether or not an amount is paid in cash)for personal services
Subtype 110218 1 000070 (366947)
2007-3787
actually rendered in the course of employment with the Employer maintaining the Plan to the extent
that the amounts are includible in gross income (including, but not limited to, commissions paid to
salespersons, compensation for services on the basis of a percentage of profits, commissions on
insurance premiums, tips, bonuses, fringe benefits, and reimbursements or other expense
allowances under a nonaccountable plan (as described in section 1.62-2(c) of the regulations)), and
excluding the following:
(a) employer contributions (other than elective contributions described in Code Section
402(e)(3), 408(k)(6), 408(p)(2)(A)(i), or 457(b)) to a plan of deferred compensation
(including a simplified employee pension described in Code Section 408(k) or a
simple retirement account described in Code Section 408(p), and whether or not
qualified) to the extent such contributions are not includible in the Employee's gross
income for the taxable year in which contributed, and any distributions (whether or not
includible in gross income when distributed) from a plan of deferred compensation
(whether or not qualified);
(b) amounts realized from the exercise of a nonstatutory stock option (that is, an option
other than a statutory stock option as defined in section 1.421-1(b)of the regulations),
or when restricted stock (or property) held by the Employee either becomes freely
transferable or is no longer subject to a substantial risk of forfeiture;
(c) amounts realized from the sale, exchange or other disposition of stock acquired under
a statutory stock option;
(d) other amounts that receive special tax benefits, such as premiums for group-term life
insurance (but only to the extent that the premiums are not includible in the gross
income of the Employee and are not salary reduction amounts that are described in
Code Section 125); and
(e) other items of remuneration that are similar to any of the items listed in (a) through (d)
above.
The final regulations also allow (a) above to be further modified if the plan sponsor so chooses.
This is an optional change that is allowed but is not required by the final regulations. Mark the
box below if this modification is to apply:
❑ (a) above is modified to not exclude amounts received during the year by an
Employee pursuant to a nonqualified unfunded deferred compensation plan to the
extent includible in gross income.
In addition, Compensation is modified as follows:
Except as provided herein, Compensation for a specified period is the Compensation actually
paid or made available(or if earlier, includible in gross income)during such period.
Subtype 110218 2 000070 (366947)
Compensation for a Plan Year shall also include Compensation paid by the later of 2 1/2 months
after an Employee's Severance from Employment with the Employer maintaining the Plan or the
end of the Plan Year that includes the date of the Employee's Severance from Employment with
the Employer maintaining the Plan, if the payment is regular Compensation for services during
the Employee's regular working hours, or Compensation for services outside the Employee's
regular working hours (such as overtime or shift differential), commissions, bonuses, or other
similar payments, and, absent a Severance from Employment, the payments would have been
paid to the Employee while the Employee continued in employment with the Employer.
The final regulations also allow other types of post-severance Compensation to be included if
the plan sponsor so chooses. This is an optional change that is allowed but is not required by
the final regulations. Mark the box below to include these other types of post-severance
Compensation:
•❑ Compensation for a Plan Year shall also include Compensation paid by the later
of 2 1/2 months after an Employee's Severance from Employment with the
Employer maintaining the Plan or the end of the Plan Year that includes the date
of the Employee's Severance from Employment with the Employer maintaining
the Plan, if: (i) the payment is for unused accrued bona fide sick, vacation or
other leave that the Employee would have been able to use if employment had
continued; or (ii) the payment is received by the Employee pursuant to a
nonqualified unfunded deferred compensation plan and would have been paid at
the same time if employment had continued, but only to the extent includible in
gross income.
Any payments not described above shall not be considered Compensation if paid after Severance
from Employment, even if they are paid.by the later of 2 1/2 months after the date of Severance
from Employment or the end of the Plan Year that includes the date of Severance from
Employment, except, payments to an individual who does not currently perform services for the
Employer by reason of qualified military service (within the meaning of Code Section 414(u)(1)) to
the extent these payments do not exceed the amounts the individual would have received if the
individual had continued to perform services for the Employer rather than entering qualified
military service.
The final regulations also provide another exception to the post-severance Compensation rules.
This is an optional change that is allowed but is not required by the final regulations. Mark the
box below and the applicable selection to include this type of post-severance Compensation:
❑ Compensation shall also include post-severance Compensation paid to a
Participant who is permanently and totally disabled, as defined in Code Section
22(e)(3), provided the condition below is met. Select one of the following:
❑ Salary continuation applies to all Participants who are permanently and totally
disabled for a fixed or determinable period.
❑ The Participant was not a highly compensated employee, as defined in Code
Section 414(q), immediately before becoming disabled.
Back pay, within the meaning of section 1.415(c)-2(g)(8) of the regulations, shall be treated as
Compensation for the Plan Year to which the back pay relates to the extent the back pay
represents wages and compensation that would otherwise be included in this definition.
Compensation paid or made available during a specified period shall include amounts that would
otherwise be included in Compensation but for an election under Code Section 125(a), 132(f)(4),
402(e)(3), 402(h)(1)(B), 402(k), or 457(b). Compensation shall also include employee
contributions "picked up" by a governmental entity and, pursuant to Code Section 414(h)(2),
treated as Employer contributions.
Subtype 110218 3 000070 (366947)
For Plan Years beginning on or after January 1, 2002, the annual Compensation of each
Participant taken into account in determining contributions and allocations for any determination
period (the period over which Compensation is determined) shall not exceed $200,000, as
adjusted for cost-of-living increases in accordance with Code Section 401(a)(17)(B). The cost-of-
living adjustment in effect for a calendar year applies to any determination period beginning with
or within such calendar year.
Modification of the Definition of PREDECESSOR EMPLOYER. The definition of Predecessor
Employer is modified by striking the words"means a firm" from the first sentence and substituting
in lieu thereof "means, except for purposes of the CONTRIBUTION LIMITATION SECTION of
Article III, a firm."
Modification of the Definition of SEVERANCE FROM EMPLOYMENT. If the Plan includes a
definition of Severance from Employment in Article I, the definition of Severance from
Employment is modified by striking the first sentence and substituting in lieu thereof the following:
Severance from Employment means, except for purposes of the CONTRIBUTION LIMITATION
SECTION of Article III, an Employee has ceased to be an Employee.
If the Plan does not include a definition of Severance from Employment in Article I, the following
definition of Severance from Employment is added:
Severance from Employment means, except for purposes of the CONTRIBUTION LIMITATION
SECTION of Article III, an Employee has ceased to be an Employee. The Plan Administrator shall
determine if a Severance from Employment has occurred in accordance with section 1.401(k)-
1(d)(2) of the regulations.
CONTRIBUTION LIMITATION
This section strikes the CONTRIBUTION LIMITATION SECTION of Article III, and substitutes in
lieu thereof the following:
SECTION 3.03 (3.04, if applicable)--CONTRIBUTION LIMITATION.
Contributions to the Plan shall be limited in accordance with Code Section 415 and the regulations
thereunder. The limitations of this section shall apply to Limitation Years beginning on or after
July 1, 2007, except as otherwise provided herein.
(a) Definitions. For the purpose of determining the contribution limitation set forth in this
section, the following terms are defined:
Annual Additions means the sum of the following amounts credited to a Participant's
account for the Limitation Year:
(1) employer contributions;
(2) employee contributions; and
(3) forfeitures.
Annual Additions to a defined contribution plan, as defined in section 1.415(c)-
1(a)(2)(i) of the regulations, shall also include the following:
(4) mandatory employee contributions, as defined in Code Section 411(c)(2)(C)
and section 1.411(c)-1(c)(4)of the regulations, to a defined benefit plan;
Subtype 110218 4 000070 (366947)
(5) contributions allocated to any individual medical benefit account, as defined in
Code Section 415(1)(2), which is part of a pension or annuity plan maintained
by the Employer;
(6) amounts attributable to post-retirement medical benefits, allocated to the
separate account of a key employee, as defined in Code Section 419A(d)(3),
under a welfare benefit fund, as defined in Code Section 419(e), maintained by
the Employer; and
(7) annual additions under an annuity contract described in Code Section 403(b).
Compensation means whichever of the following applies:
If Compensation is currently defined as "wages within the meaning of Code Section
3401(a) and all other payments ," Compensation means wages, within the
meaning of Code Section 3401(a), and all other payments of compensation to an
employee by the Employer (in the course of the Employer's trade or business) for
which the Employer is required to furnish the employee a written statement under
Code Sections 6041(d), 6051(a)(3), and 6052. Compensation shall be determined
without regard to any rules under Code Section 3401(a) that limit the remuneration
included in wages based on the nature or location of the employment or the services
performed (such as the exception for agricultural labor in Code Section 3401(a)(2)).
The type of compensation that is reported in the "Wages, Tips and Other
Compensation" box on Form W-2 satisfies this definition.
If Compensation is currently defined as "wages within the meaning of Code Section
• 3401(a) for the purposes of income tax withholding ... ," Compensation means
wages within the meaning of Code Section 3401(a) for the purposes of income tax
withholding at the source but determined without regard to any rules that limit the
remuneration included in wages based on the nature or location of the employment or
the services performed (such as the exception for agricultural labor in Code Section
3401(a)(2)).
If Compensation is currently defined as "wages, salaries, and fees for professional
services ," Compensation means wages, salaries, and fees for professional
services and other amounts received (without regard to whether or not an amount is
paid in cash)for personal services actually rendered in the course of employment with
the Employer maintaining the plan to the extent that the amounts are includible in
gross income (including, but not limited to, commissions paid to salespersons,
compensation for services on the basis of a percentage of profits, commissions on
insurance premiums, tips, bonuses, fringe benefits, and reimbursements or other
expense allowances under a nonaccountable plan (as described in section 1.62-2(c)
of the regulations)), and excluding the following:
(1) employer contributions (other than elective contributions described in Code
Section 402(e)(3), 408(k)(6), 408(p)(2)(A)(i), or 457(b)) to a plan of deferred
compensation (including a simplified employee pension described in Code
Section 408(k) or a simple retirement account described in Code Section
408(p), and whether or not qualified) to the extent such contributions are not
includible in the employee's gross income for the taxable year in which
contributed, and any distributions (whether or not includible in gross income
when distributed) from a plan of deferred compensation (whether or not
qualified);
(2) amounts realized from the exercise of a nonstatutory stock option (that is, an
option other than a statutory stock option as defined in section 1.421-1(b) of
the regulations), or when restricted stock (or property) held by the employee
either becomes freely transferable or is no longer subject to a substantial risk
of forfeiture;
Subtype 110218 5 000070 (366947)
(3) amounts realized from the sale, exchange or other disposition of stock
acquired under a statutory stock option;
(4) other amounts that receive special tax benefits, such as premiums for group-
term life insurance (but only to the extent that the premiums are not includible
in the gross income of the employee and are not salary reduction amounts that
are described in Code Section 125); and
(5) other items of remuneration that are similar to any of the items listed in (1)
through (4) above.
The final regulations also allow (1) above to be further modified if the plan sponsor so chooses.
This is an optional change that is allowed but is not required by the final regulations. Mark the
box below if this modification is to apply:
(1) above is modified to not exclude amounts received during the year by an
employee pursuant to a nonqualified unfunded deferred compensation plan to the
extent includible in gross income.
For any Self-employed Individual, Compensation means Earned Income.
Except as provided herein, Compensation for a Limitation Year is the Compensation
actually paid or made available (or if earlier, includible in gross income) during such
Limitation Year. Compensation for a Limitation Year shall include amounts earned
but not paid during the Limitation Year solely because of the timing of pay periods and
pay dates, provided the amounts are paid during the first few weeks of the next
Limitation Year, the amounts are included on a uniform and consistent basis with
respect to all similarly situated employees, and no Compensation is included in more
than one Limitation Year.
The final regulations allow this modification if the plan sponsor so chooses. This is an optional
change that is allowed but is not required by the final regulations. Mark the box below if this
modification is not to apply:
❑ Such amounts shall not be included.
Compensation for a Limitation Year shall also include Compensation paid by the later
of 2 1/2 months after an employee's Severance from Employment with the Employer
maintaining the plan or the end of the Limitation Year that includes the date of the
employee's Severance from Employment with the Employer maintaining the plan, if
the payment is regular Compensation for services during the employee's regular
working hours, or Compensation for services outside the employee's regular working
hours (such as overtime or shift differential), commissions, bonuses, or other similar
payments, and, absent a Severance from Employment, the payments would have
been paid to the employee while the employee continued in employment with the
Employer.
Subtype 110218 6 000070 (366947)
The final regulations also allow other types of post-severance Compensation to be included if the
plan sponsor so chooses. This is an optional change that is allowed but is not required by the
final regulations. Mark the box below to include these other types of post-severance
Compensation:
❑ Compensation for a Limitation Year shall also include Compensation paid by the
later of 2 1/2 months after an employee's Severance from Employment with the
Employer maintaining the plan or the end of the Limitation Year that includes the
date of the employee's Severance from Employment with the Employer
maintaining the plan, if: (i) the payment is for unused accrued bona fide sick,
vacation or other leave that the Employee would have been able to use if
employment had continued; or (H) the payment is received by the Employee
pursuant to a nonqualified unfunded deferred compensation plan and would have
been paid at the same time if employment had continued, but only to the extent
includible in gross income.
Any payments not described above shall not be considered Compensation if paid
after Severance from Employment, even if they are paid by the later of 2 1/2 months
after the date of Severance from Employment or the end of the Limitation Year that
includes the date of Severance from Employment, except, payments to an individual
who does not currently perform services for the Employer by reason of qualified
military service (within the meaning of Code Section 414(u)(1)) to the extent these
payments do not exceed the amounts the individual would have received if the
individual had continued to perform services for the Employer rather than entering
qualified military service.
The final regulations also provide another exception to the post-severance Compensation rules.
This is an optional change that is allowed but is not required by the final regulations. Mark the
box below and the applicable selection to include this type of post-severance Compensation:
❑ Compensation shall also include post-severance Compensation paid to a
Participant who is permanently and totally disabled, as defined in Code Section
22(e)(3), provided the condition below is met. Select one of the following:
❑ Salary continuation applies to all Participants who are permanently and totally
disabled for a fixed or determinable period.
❑ The Participant was not a highly compensated employee, as defined in Code
Section 414(q), immediately before becoming disabled.
Back pay, within the meaning of section 1.415(c)-2(g)(8) of the regulations, shall be
treated as Compensation for the Limitation Year to which the back pay relates to the
extent the back pay represents wages and compensation that would otherwise be
included in this definition.
Compensation paid or made available during such Limitation Year shall include
amounts that would otherwise be included in Compensation but for an election under
Code Section 125(a), 132(f)(4), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b).
Compensation shall not include amounts paid as Compensation to a nonresident
alien, as defined in Code Section 7701(b)(1)(B), who is not a Participant in the Plan to
the extent the Compensation is excludible from gross income and is not effectively
connected with the conduct of a trade or business within the United States.
Defined Contribution Dollar Limitation means, effective for Limitation Years
beginning after December 31, 2001, $40,000, automatically adjusted under Code
Section 415(d), effective January 1 of each year, as published in the Internal Revenue
Subtype 110218 7 000070 (366947)
Bulletin. The new limitation shall apply to Limitation Years ending with or within the
calendar year of the date of the adjustment, but a Participant's Annual Additions for a
Limitation Year cannot exceed the currently applicable dollar limitation (as in effect
before the January 1 adjustment) prior to January 1. However, after a January 1
adjustment is made, Annual Additions for the entire Limitation Year are permitted to
reflect the dollar limitation as adjusted on January 1.
Employer means the employer that adopts this Plan, and all members of a controlled
group of corporations (as defined in Code Section 414(b) as modified by Code
Section 415(h)), all commonly controlled trades or businesses (as defined in Code
Section 414(c), as modified, except in the case of a brother-sister group of trades or
businesses under common control, by Code Section 415(h)), or affiliated service
groups (as defined in Code Section 414(m)) of which the adopting employer is a part,
and any other entity required to be aggregated with the employer pursuant to Code
Section 414(o).
Limitation Year means the consecutive 12-month period defined in the
CONTRIBUTION LIMITATION SECTION of Article III that was struck by this
amendment. If the Limitation Year is other than the calendar year, execution of this
Plan (or any amendment to this Plan changing the Limitation Year) constitutes the
Employer's adoption of a written resolution electing the Limitation Year. If the
Limitation Year is amended to a different consecutive 12-month period, the new
Limitation Year must begin on a date within the Limitation Year in which the
amendment is made.
Maximum Annual Addition means, for Limitation Years beginning on or after
• January 1, 2002, except for catch-up contributions described in Code Section 414(v),
the Annual Addition that may be contributed or allocated to a Participant's Account
under the Plan for any Limitation Year. This amount shall not exceed the lesser of:
(1) The Defined Contribution Dollar Limitation, or
(2) 100 percent of the Participant's Compensation for the Limitation Year.
A Participant's Compensation for a Limitation Year shall not include Compensation in
excess of the limitation under Code Section 401(a)(17) that is in effect for the
calendar year in which the Limitation Year begins.
The compensation limitation referred to in (2) shall not apply to an individual medical
benefit account (as defined in Code Section 415(1); or a post-retirement medical
benefits account for a key employee (as defined in Code Section 419A(d)(1)).
If a short Limitation Year is created because of an amendment changing the
Limitation Year to a different consecutive 12-month period, the Maximum Annual
Addition will not exceed the Defined Contribution Dollar Limitation multiplied by the
following fraction:
Number of months (including any fractional parts of a month)
in the short Limitation Year
12
If the Plan is terminated as of a date other than the last day of the Limitation Year, the
Plan is treated as if the Plan was amended to change the Limitation Year and create
a short Limitation Year ending on the date the Plan is terminated.
If a short Limitation Year is created, the limitation under Code Section 401(a)(17) shall
be prorated in the same manner as the Defined Contribution Dollar Limitation.
Subtype 110218 8 000070 (366947)
Predecessor Employer means, with respect to a Participant, a former employer if
the Employer maintains a plan that provides a benefit which the Participant accrued
while performing services for the former employer. Predecessor Employer also
means, with respect to a Participant, a former entity that antedates the Employer if,
under the facts and circumstances, the Employer constitutes a continuation of all or a
portion of the trade or business of the former entity.
Severance from Employment means an employee has ceased to be an employee
of the Employer maintaining the plan. An employee does not have a Severance from
Employment if, in connection with a change of employment, the employee's new
employer maintains the plan with respect to the employee.
(b) If the Participant does not participate in another defined contribution plan, as defined
in section 1.415(c)-1(a)(2)(i) of the regulations (without regard to whether the plan(s)
have been terminated) maintained by the Employer, the amount of Annual Additions
that may be credited to the Participant's Account for any Limitation Year shall not
exceed the lesser of the Maximum Annual Addition or any other limitation contained in
this Plan. If the Employer Contribution that would otherwise be contributed or
allocated to the Participant's Account would cause the Annual Additions for the
Limitation Year to exceed the Maximum Annual Addition, the amount contributed or
allocated shall be reduced so that the Annual Additions for the Limitation Year will
equal the Maximum Annual Addition.
(c) If, in addition to this Plan, the Participant is covered under another defined
contribution plan, as defined in section 1.415(c)-1(a)(2)(i) of the regulations, (without
regard to whether the plan(s) have been terminated) maintained by the Employer that
provides an Annual Addition during any Limitation Year, the Annual Additions that
may be credited to a Participant's Account under this Plan for any such Limitation
Year will not exceed the Maximum Annual Addition, reduced by the Annual Additions
credited to a Participant's account under the other defined contribution plan(s) for the
same Limitation Year. If the Annual Additions with respect to the Participant under
the other defined contribution plan(s) maintained by the Employer are less than the
Maximum Annual Addition, and the Employer Contribution that would otherwise be
contributed or allocated to the Participant's Account under this Plan would cause the
Annual Additions for the Limitation Year to exceed this limitation, the amount
contributed or allocated will be reduced so that the Annual Additions under all such
plans and funds for the Limitation Year will equal the Maximum Annual Addition. If
the Annual Additions with respect to the Participant under the other defined
contribution plan(s) in the aggregate are equal to or greater than the Maximum
Annual Addition, no amount will be contributed or allocated to the Participant's
Account under this Plan for the Limitation Year.
(d) The limitation of this section shall be determined and applied taking into account the
rules in subparagraph (e) below.
(e) Other Rules
(1) Aggregating Plans. For purposes of applying the limitations of this section for
a Limitation Year, all defined contribution plans (as defined in section 1.415(c)-
1(a)(2)(i) of the regulations and without regard to whether the plan(s) have
been terminated) ever maintained by the Employer and all defined contribution
plans of a Predecessor Employer (in the Limitation Year in which such
Predecessor Employer is created) under which a Participant receives Annual
Additions are treated as one defined contribution plan.
(2) Break-up of Affiliated Employers. The Annual Additions under a formerly
affiliated plan (as defined in section 1.415(f)-1(b)(2)(ii) of the regulations) of the
Employer are taken into account for purposes of applying the limitations of this
section for the Limitation Year in which the cessation of affiliation took place.
Subtype 110218 9 000070 (366947)
(3) Previously Unaqqreqated Plans. The limitations of this section are not
exceeded for the first Limitation Year in which two or more existing plans,
which previously were not required to be aggregated pursuant to section
1.415(f) of the regulations, are aggregated, provided that no Annual Additions
are credited to a Participant after the date on which the plans are required to
be aggregated if the Annual Additions already credited to the Participant in the
existing plans equal or exceed the Maximum Annual Addition.
(4) Aegregation with Multiemployer Plan. If the Employer maintains a
multiemployer plan, as defined in Code Section 414(f), and the multiemployer
plan so provides, only the Annual Additions under the multiemployer plan that
are provided by the Employer shall be treated as Annual Additions provided
under a plan maintained by the Employer for purposes of this section.
EXCESS AMOUNTS
This section modifies the EXCESS AMOUNTS SECTION of Article III.
Modification of the Definition of CONTRIBUTION PERCENTAGE. The definition of
Contribution Percentage, if applicable, is modified effective as of the first day of the first Plan Year
beginning on or after July 1, 2007 as follows:
If the Plan Year and Limitation Year (as defined in the CONTRIBUTION LIMITATION SECTION
of Article III) are the same, Compensation for the Plan Year shall include amounts earned but not
paid during the Plan Year solely because of the timing of pay periods and pay dates, provided the
amounts are paid during the first few weeks of the next Plan Year, the amounts are included on a
uniform and consistent basis with respect to all similarly situated Employees, and no
Compensation is included in more than one Plan Year.
Modification of the Definition of DEFERRAL PERCENTAGE. The definition of Deferral
Percentage is modified effective as of the first day of the first Plan Year beginning on or after July
1, 2007 as follows:
If the Plan Year and Limitation Year (as defined in CONTRIBUTION LIMITATION SECTION of
Article III) are the same, Compensation for the Plan Year shall include amounts earned but not
paid during the Plan Year solely because of the timing of pay periods and pay dates, provided the
amounts are paid during the first few weeks of the next Plan Year, the amounts are included on a
uniform and consistent basis with respect to all similarly situated Employees, and no
Compensation is included in more than one Plan Year.
The final regulations allow these modifications if the plan sponsor so chooses. This is an optional
change that is allowed but is not required by the final regulations. Mark the box below if this
modification is not to apply:
❑ Such amounts shall not be included.
Subtype 110218 10 000070 (366947)
FINAL REGULATIONS UNDER CODE SECTION 402A
The provisions of the following sections shall be effective for taxable years beginning on or after
January 1, 2006.
DIRECT ROLLOVERS OF PLAN DISTRIBUTIONS
Modification of the Definition of ELIGIBLE RETIREMENT PLAN. The definition of Eligible
Retirement Plan is modified as follows:
If any portion of an Eligible Rollover Distribution is attributable to payments or distributions from a
designated Roth account, an Eligible Retirement Plan with respect to such portion shall also include
another designated Roth account of such individual under an annuity plan described in Code
Section 403(b).
Modification of the Definition of ELIGIBLE ROLLOVER DISTRIBUTION. The definition of
Eligible Rollover Distribution is modified as follows:
A portion of a distribution shall not fail to be an Eligible Rollover Distribution merely because the
portion consists of the portion of a designated Roth account that is not includible in a Participant's
gross income. However, for taxable years beginning on or after January 1, 2006, such portion may
be transferred only to a Roth IRA described in Code Section 408A or to a designated Roth account
under another plan that agrees to separately account for amounts so transferred, including
separately accounting for the portion of such distribution which is includible in gross income and the
portion of such distribution which is not so includible.
In determining if any distribution(s) that includes any portion of a designated Roth account is
reasonably expected to total less than $200 during a year, the following applies: (i) any portion of
the distribution from the designated Roth account shall not be treated as an Eligible Rollover
Distribution if it is reasonably expected to total less than $200 during a year and (ii) the balance of
the distribution, if any, shall not be treated as an Eligible Rollover Distribution if it is reasonably
expected to total less than $200 during a year. In addition, for taxable years beginning on or after
January 1, 2006, a designated Roth account and all other accounts under the Plan shall be treated
as accounts held under two separate plans and shall not be combined in determining a mandatory
distribution of an Eligible Rollover Distribution greater than $1,000 in the DIRECT ROLLOVERS
SECTION of Article X.
ROTH ELECTIVE DEFERRAL CONTRIBUTIONS
Modification of the Definition of ROTH ELECTIVE DEFERRAL CONTRIBUTIONS. The
definition of Roth Elective Deferral Contributions in the DEFINITIONS SECTION of Article I, if
applicable, is modified as follows:
Roth Elective Deferral Contributions means a Participant's Elective Deferral Contributions that
are not excludible from the Participant's gross income at the time deferred and have been
irrevocably designated as Roth Elective Deferral Contributions by the Participant in his elective
deferral agreement. Whether an Elective Deferral Contribution is not excludible from a Participant's
gross income will be determined in accordance with section 1.401(k)-1(f)(2) of the regulations. In
the case of a Self-employed Individual, an Elective Deferral Contribution is not excludible from
gross income only if the individual does not claim a deduction for such amount.
The definition of Roth Elective Deferral Contributions in the EXCESS AMOUNTS SECTION of
Article III, if applicable, is modified as follows:
Roth Elective Deferral Contributions means a participant's Elective Deferral Contributions that
are not excludible from the participant's gross income at the time deferred and have been
irrevocably designated as Roth Elective Deferral Contributions by the participant in his elective
deferral agreement. Whether an Elective Deferral Contribution is not excludible from a
Subtype 110218 11 000070 (366947)
participant's gross income will be determined in accordance with section 1.40(k)-1(f)(2) of the
regulations. In the case of a self-employed individual, an Elective Deferral Contribution is not
excludible from gross income only if the individual does not claim a deduction for such amount.
ROLLOVER CONTRIBUTIONS
Modifications to Direct Rollovers and Participant Rollover Contributions from Other Plans.
If the Plan permits a Participant to designate his Elective Deferral Contributions as Roth Elective
Deferrals Contributions and accepts a direct rollover of an Eligible Rollover Distribution from an
annuity contract described in Code Section 403(b), the direct rollover provisions are modified as
follows:
The Plan provisions regarding the direct rollover of an Eligible Rollover Distribution from an
annuity contract described in Code Section 403(b) shall be modified to include any portion of a
designated Roth account.
If the Plan permits a Participant to designate his Elective Deferral Contributions as Roth Elective
Deferrals Contributions and accepts a Participant contribution of an Eligible Rollover Distribution
from an annuity contract described in Code Section 403(b), the Participant rollover provisions are
modified as follows:
The Plan provisions regarding the Participant contribution of an Eligible Rollover Distribution from
an annuity contract described in Code Section 403(b) shall be modified to include distributions of
a designated Roth account only to the extent such amount would otherwise be includible in a
Participant's gross income.
AMENDMENTS TO SECTION 1.411(d)-3 OF THE REGULATIONS
The provisions of the following section are effective for Plan Years beginning on or after January
1, 2007.
AMENDMENTS
This section modifies the AMENDMENTS SECTION of Article X, by striking the last sentence in
the third paragraph and by striking the last paragraph in such section and substituting in lieu
thereof the following:
An amendment shall not decrease a Participant's vested interest in the Plan. If an amendment to
the Plan (a deemed amendment in the case of a change in top-heavy status of the Plan, if
applicable) changes the computation of the percentage used to determine that portion of a
Participant's Account attributable to Employer Contributions which is nonforfeitable(whether directly
or indirectly), in the case of an Employee who is a Participant as of the later of the date such
amendment or change is adopted or the date it becomes effective, the nonforfeitable percentage
(determined as of such date) of such Employee's right to his Account attributable to Employer
Contributions shall not be less than the percentage computed under the Plan without regard to such
amendment or change. Furthermore, each Participant or former Participant
(c) who has completed at least three Years of Service on the date the election period
described below ends (five Years of Service if the Participant does not have at least
one Hour of Service in a Plan Year beginning after December 31, 1988)and
(d) whose nonforfeitable percentage will be determined on any date after the date of the
change
may elect, during the election period, to have the nonforfeitable percentage of his Account that
results from Employer Contributions determined without regard to the amendment. This election
may not be revoked. If after the Plan is changed, the Participant's nonforfeitable percentage will
at all times be as great as it would have been if the change had not been made, no election
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needs to be provided. The election period shall begin no later than the date the Plan amendment
is adopted (deemed adopted in the case of a change in the top-heavy status of the Plan, if
applicable) and end no earlier than the 60th day after the latest of the date the amendment is
adopted (deemed adopted, if applicable) or becomes effective, or the date the Participant is issued
written notice of the amendment (deemed amendment, if applicable) by the Employer or the Plan
Administrator.
For an amendment adopted after August 9, 2006, with respect to a Participant's Account
attributable to Employer Contributions accrued as of the later of the adoption or effective date of the
amendment and earnings, the vested percentage of the Participant will be the greater of the vested
percentage under the old vesting schedule or the vested percentage under the new vesting
schedule.
This amendment is made an integral part of the aforesaid Plan and is controlling over the terms of
said Plan with respect to the particular items addressed expressly therein. All other provisions of
the Plan remain unchanged and controlling.
Unless otherwise stated on any page of this amendment, eligibility for benefits and the amount of
any benefits payable to or on behalf of an individual who is an Inactive Participant on the effective
date(s) stated above, shall be determined according to the provisions of the aforesaid Plan as in
effect on the day before he became an Inactive Participant.
Signing this amendment, the undersigned, as plan sponsor, has made the decision to adopt this
plan amendment. The undersigned is acting in reliance on their own discretion and on the legal
and tax advice of their own advisors, and not that of any member of the Principal Financial Group
or any representative of a member company of the Principal Financial Group.
Signed this 17th day of December ,2007
For the Em loyer . I
By: •
Toner=
Title
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