HomeMy WebLinkAbout20050952.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 March 28, 2005, 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 16th day of March A.D., 2005.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST: giernaliti ,T IZA„J
William H. Jerke, Chair
Weld County Clerk to the Board
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Deputy Clem to the Board
Da ' E. Long
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Principal
Financial
Group
March 10, 2005
Jewel Vaughn
WELD COUNTY 401(K) SAVINGS PLAN
P. O. Box 758
Greeley, CO 80632-0758
RE: Contract Number 3-66947
Dear Ms. Vaughn:
The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA)requires that mandatory
distributions over$1,000 be rolled into an IRA,unless the participant elects otherwise. Distributions
less than $1,000 can be automatically paid in cash.
On September 28, 2004, the Department of Labor(DOL) issued final regulations that give safe harbor
rules plan sponsors can follow to meet the requirements. The automatic rollover rules apply to small
amount distributions beginning March 28,2005.
What this means to you
Because you maintain a custom plan document, you need to take the following four actions. Each is
explained in more detail below.
❑ 1. Review your options and choose an IRA provider.
❑ 2. Review, sign, and send to us a Rollover IRA Agreement.
❑ 3. Review, sign, and promptly return the enclosed plan amendment to us.
❑ 4. Finalize and distribute a Notice to Participants and send a copy to us.
❑ 1. Choose an IRA provider
Principal Bank Safe Harbor IRASA°
We have a solution that meets the DOL safe harbor requirements and makes it easy for you to manage
automatic rollovers.At Principal Bank the rollover IRA will be invested in a savings account that is
insured by the FDIC. It will allow for a seamless transfer of funds,making it easy for you to manage
automatic rollovers.
A Principal Bank Safe Harbor IRA offers your former participants a tax-sheltered vehicle that's
flexible and easily transferable. Principal Bank offers 24/7 online banking,a competitive interest rate,
`round-the-clock telephone access to personal bankers,and a low cost. The IRA annual expense
charge to participants is $15.00.
For more information,including the most current interest rate on a Principal Bank Safe Harbor IRA,
enter this URL in your Internet browser: https://secure02.principal.com/bank/safeharbor.
If your plan currently allows for automatic rollovers to Princor Financial Services Corporation,those
retirement funds will remain at Princor®. However,Princor will not accept new rollovers after
March 27,2005.
Choose a different provider for rollover amounts.
You may choose an IRA provider outside the Principal Financial Group'. Please let us know if this is
your decision and send us a copy of your IRA Agreement with the provider. We will need to work
with you to obtain the information needed to process your future rollover distributions.
O 2. Sign a Rollover IRA Agreement
An IRA agreement with Principal Bank and return envelope are included with this letter. If you
choose Principal Bank as your IRA provider,please sign and return the agreement right away.
If you choose an IRA provider other than Principal Bank,disregard the enclosed agreement. Instead,
send us a copy of your IRA Agreement with the alternate provider.
IMPORTANT: If we do not have a signed IRA agreement(either with us or another provider)on file
by March 28,2005,we will be unable to process small amount distributions from your plan.
❑ 3. Amendment to your plan document
Your plan must be amended to allow for the automatic rollover of small amounts. Enclosed is the
amendment draft for your careful review and signature. Please return a copy of the signed and dated
amendment to me.
❑ 4. Notice to Participants
The DOL safe harbor also requires that you notify participants about this law change.The enclosed
sample Notice to Plan Participants serves as a Summary of Material Modification. Complete the
information at the bottom and specify whom a participant may contact at your office for additional
information. If you choose an IRA provider other than Principal Bank,be sure to draft a Notice
accordingly.
Please distribute a copy of the Notice to all participants and all new employees until your booklet is
updated. Also,send us a copy of the Notice you distribute. We need information from the notice to
update your booklet. As always,when a participant ends employment,he or she will also receive a
benefit event package from us with more detailed information.
Questions?
Thank you for your continued business. We are confident these changes will provide the flexibility
and options that you need for your retirement program. If you have any questions,please contact your
local representative or me.
Sincerely, l, '
DEE SCHRADER
SR CLIENT SERVICE ASSOCIATE
Phone: 509-324-7736
Fax: 515-362-2263
Enclosures
Insurance products issued by Principal Life Insurance Company. Mutual funds and other securities
products offered through Princor Financial Services Corporation, 800-547-7754,Member SIPC. Bank
Products offered through Principal Bank, Member FDIC. Principal Life, Princor and Principal Bank are
members of the Principal Financial Group, Des Moines IA 50392.
Mutual funds and all other securities products are not insured by the FDIC; are not obligations or deposits
for Principal Bank nor guaranteed by Principal Bank;and are subject to investment risks, including
possible loss of the principal invested.
PO Box 2000,Mason City,IA 50402-2000 (800)988-7766,EXT.47736 www.principal.com
•
Principal Principal Life Insurance Company
Des Moines, IA 50392-0001
Financial 1-800-986-3343 Rollover IRA Agreement for
Group www.principal.com
A member of the Principal Financial Group® Mandatory Distributions
General Information
This Rollover IRA Agreement for Mandatory Distributions (this "Agreement") is between the undersigned Plan Fiduciary
("you", "your") and Principal Bank, a federal savings bank g ("we", "us", "our"). You and we are the "Parties" to this
Agreement. Each of the Parties may be referred to separately as a "Party". This agreement is effective on the date you
sign it.
The Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA") requires that mandatory distributions
greater than $1,000 be automatically rolled to an individual retirement account (an "IRA"), unless the participant elects
otherwise. The final Department of Labor ("DOL") regulations issued in September 2004 require plan fiduciaries to
establish a written agreement with an individual retirement plan provider to receive the rollover funds. With this written
agreement you hereby select Principal Bank as the IRA provider for the Plan named below(the"Plan").
Investment of rollover funds
The mandatory distributions shall be invested in Principal Bank Safe Harbor IRAs (each a "Principal Bank IRA")
designed to preserve principal and provide liquidity. The deposit investment we offer pursuant to this Agreement is a
savings account. The Principal Bank IRA is not, and cannot be, a self-directed IRA. Distributions must be in the form of
cash only. Distributions or IRA assets in the form of non-deposit investments such as property, annuities, stocks, bonds
and government, municipal or United States Treasury securities will not be accepted. Upon the transfer of a mandatory
distribution to us on behalf of any participant, the participant will become the owner of the Principal Bank IRA and all
rights and privileges of said participant will be governed by the Traditional Individual Retirement Custodial Account
Custodial Booklet, the Terms and Conditions, the Schedule of Fees and the Truth-In-Savings Disclosure for the
Principal Bank IRA, all which may be amended by us from time to time(collectively, the"Disclosure Documents").
Fees and expenses of rollover funds
Fees and expenses assessed against the Principal Bank IRAs shall not exceed the amounts charged by us for
comparable IRAs established with us for distributions other than automatic rollovers. Each owner of a Principal Bank
IRA will be charged an annual custodial fee as described in the Disclosure Documents. Additional expenses, if any, are
outlined in the Disclosure Documents.
Designation of IRA Provider
You hereby designate Principal Bank as the IRA provider for the automatic rollover of mandatory distributions greater
than $1,000 for the Plan. As provided by the DOL regulations, you may rely an this Agreement as meeting the safe
harbor regulations. Your plan fiduciary responsibility with respect to a mandatory rollover ends when the funds are
placed in a Principal Bank IRA pursuant to this Agreement. You hereby authorize the release of any and all information
necessary to establish and maintain the Principal Bank IRAs for your plan participants. The transfer to us of any assets
of the Plan from Principal Life Insurance Company to any other entity is dependent on information provided by you. We
will not be responsible for the receipt and acceptance of plan assets or any improper performance of, or failure to
perform, any service due, in whole or in part, to receipt of no, or incomplete or incorrect, data needed to perform.
Status
Nothing in this Agreement, nor in the opening of Principal Bank IRAs as contemplated by this Agreement, makes us a
party to, or a fiduciary or administrator regarding, the Plan.
Termination of this Agreement
This Agreement may be terminated by either Party upon 30 days' written notice. In order to terminate this Agreement,
you shall also provide 30 days' written notice to Principal Life Insurance Company. Any such termination shall have no
effect on any Principal Bank IRAs established prior to the effective date of such termination.
Subtype 100802 Page 1 of 2 01/2005
Dispute Resolution
If the Parties have a dispute regarding this Agreement, any rights, duties or obligations granted or arising under this
Agreement, or any transaction made under this Agreement, they will try in good faith to resolve all such disputes through
negotiation or mediation. If the Parties do not resolve their differences that way, they will do so through arbitration. All
arbitration proceedings shall be conducted in accordance with the rules of the American Arbitration Association, subject
to this Agreement. The results of an arbitration proceeding shall be final and binding. Any and all right to seek remedies
in court, including the right to a jury trial, are expressly waived. It is specifically agreed that if negotiation and mediation
are not successful, arbitration conducted in accordance with this Agreement shall be the exclusive method to resolve
disputes and provide appropriate remedies. The site of the arbitration shall be the capital city of the State, unless the
Parties agree to another location. Any award rendered in an arbitration proceeding shall be binding and enforceable.
Judgment on any award or other remedy given by the arbitrators may be rendered in any court of the State or any court
of the United States sitting in the State. The Parties agree to accept the jurisdiction of such courts and service of
process. Any objection to the jurisdiction of any such court is expressly waived.
Miscellaneous
This Agreement sets out the entire understanding of the Parties with respect to the matters described herein. It
supercedes and cancels any and all prior agreements, understandings and representations between the Parties,
whether written or oral, relating to these matters. Neither this Agreement nor any right, title, interest or performance with
regard to this Agreement may be assigned without the written consent of the other Party. We may, however, assign our
rights, duties and obligations under this Agreement to an affiliate without your consent. This Agreement may only be
amended by the written agreement of both Parties. Notices provided under this Agreement must be in writing and may
be provided via mail, overnight courier or facsimile to the addresses set forth below or such other addresses provided
from time by the Parties.
Signatures
IN WITNESS WHEREOF, the Parties hereby execute this Agreement as of the date first written above.
Plan Name Contract Number/Plan ID
WELD COUNTY 401 (K) SAVINGS PLAN 3-66947
Plan Fiduciary Printed Name Plan Fiduciary Title
&Qi Ili ken A Q.-4u-c eAll•uz, 3d Wald £1" 4i,rrarsat-le/Is
Plan Fiduciary Signature Date
X T74A--- 3- i6 -Or
Notice Information
Telephone Number FAX Number State in w ' h this gresigned by you("State")
no'Ara -rod° 97o - - °zv t
U
On behalf of Principal Bank:
X 44.frALL, 61444.5474t4}.
President and CEO
Notice Information
Principal Bank Principal Life Insurance Company
711 High Street 711 High Street
Des Moines, IA 50392 Des Moines, IA 50392
Phone Number: (800)672-3343 Telephone Number: (800) 543-4015
FAX Number: (515)883-9158
Subtype 100802 Page 2 of 2 01/2005
GOOD FAITH AMENDMENT TO COMPLY WITH CODE SECTION 401(a)(31)(B) AS
AMENDED BY THE ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF
2001 (EGTRRA)
This amendment of the Plan is adopted to reflect certain provisions of the Economic Growth
and Tax Relief Reconciliation Act of 2001 (EGTRRA). This amendment is intended as good
faith compliance with the requirements of EGTRRA and is to be construed in accordance
with EGTRRA and guidance issued thereunder. This amendment shall be effective as of
March 28, 2005. 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 good faith
compliance EGTRRA amendment provisions are specifically amended.
This amendment shall supersede any previous good faith compliance EGTRRA amendment
and the provisions of the Plan to the extent those provisions are inconsistent with the
provisions of this amendment.
Plan Name: WELD COUNTY 401(K) SAVINGS PLAN
The Plan named above gives the Employer the right to amend it at any time. According to
that right, the Plan is amended as follows:
AUTOMATIC ROLLOVERS
In the event of a mandatory distribution greater than $1,000 in accordance with the small
amounts payment provisions of Article VIII or the SMALL AMOUNTS SECTION of Article X,
if the Participant does not elect Ito have such distribution paid directly to an Eligible
Retirement Plan specified by the Participant in a Direct Rollover or to receive the distribution
directly in accordance with the DIRECT ROLLOVERS SECTION of Article X, then the Plan
Administrator will pay the distribution in a Direct Rollover to an individual retirement plan
designated by the Plan Administrator. In the event of any other small amounts payment to
a Distributee in accordance with the small amounts payment provisions of Article VIII or the
SMALL AMOUNTS SECTION of Article X, if the Distributee does not elect to have such
distribution paid directly to an Eligible Retirement Plan specified by the Distributee in a
Direct Rollover or to receive the distribution directly in accordance with the DIRECT
ROLLOVERS SECTION of Article X, then the Plan Administrator will pay the distribution to
the Distributee.
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 herein. All other
provisions of the Plan remain unchanged and controlling-.
Signing this amendment, the Employer, as plan sponsor, has made the decision to adopt
this plan amendment. The Employer is acting in reliance on its own discretion and on the
legal and tax advice of its 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 /6 day of 0/j/fj6
For the Employer
By t-M/ A
R /� ono
y
l`n ,2 ad We/a/ L'o £nnn s s,wr a tit s
Title
Subtype 110218 1 Group Annuity Contract No.: 3-66947
Notice to Plan Participants
Retirement Benefits Law Change
A recent change in the law may affect how retirement benefits are paid to you if you
should terminate employment with us.
Once you terminate employment, plan provisions may entitle you to a distribution (refer
to your plan booklet for details). The new law states that if the present value of the
benefit is between $1,000 and $5,000, and you don't choose how to receive it, the
benefit must be rolled over to an IRA.*
There are two ways you can choose to receive your distribution:
• Direct Rollover to an IRA or another qualified retirement plan. This allows you to
keep the retirement benefit tax deferred.
• Paid in cash. This option is subject to 20% federal tax withholding and generally a
penalty tax if you are under age 59 'A.
Once you terminate employment, you will receive forms to complete that explain your
distribution options. If you do not complete and return these forms within 60 days,
your distribution will be paid based on its value.
If the present value is between $1,000 and $5,000, the benefit will be rolled directly into
a Principal Bank Safe Harbor IRAs"' established for you that is designed to preserve
principal and provide liquidity. The deposit investment is a savings account. Your IRA
account will be charged a small annual expense charge. Once the benefit is rolled over
into an IRA, you will receive information from Principal Bank.
*If the present value is less than $1,000, it will be paid in cash.
For additional information about the Principal Bank Safe Harbor IRA and associated
fees, contact:
.TCwc( I' (Name of contact at employer's office)
J/S /o ms -r U (Address)
Gaet1sv. Co 8-"Phone)
f70 - .ESL — y000 x y,,3/
Insurance products issued by Principal Life Insurance Company. Bank products offered through Principal
Bank, Member FDIC. Principal Life and Principal Bank are members of the Principal Financial Group, Des
Moines IA 50392.
Subtype 101115 Group Annuity Contract No.: 3-66947
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