HomeMy WebLinkAbout20032997.tiff RESOLUTION
RE: APPROVE AMENDMENTS TO WELD COUNTY 401K 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 Amendments to the Weld County 401K
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,with 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 401K 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 27th day of October, A.D., 2003.
BOA OF COUNTY COMMISSIONERS
WEL C LINTY, COLO DO
ATTEST: �a�tji/
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Weld County Clerk t =` ''a.►` �� Robert D. M en, Pro-Tem
BY: �� �d _+,�?! A 1
Deputy Clerk to t Nft
APP D AS M: st-t 7R11
Willia H. Jerk
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Glenn Vaada
Date of signature: /fa
2003-2997
PE0021
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Principal Spokane Principal Life
Pension Center Insurance Company
Financial Retirement and
Group Investor Services
October 2003
Ms Jewel Vaughn
Weld County Annuity Contract Number (3)66947
915 10th Street
P. O. Box 758
Greeley, CO 80632-0758
RE WELD COUNTY 401(K) SAVINGS PLAN
Dear Ms. Vaughn
Keeping your retirement plan updated to comply with new laws is very
important. —
Your plan needs to be updated to include certain changes regarding Minimum
Required Distributions (MRDs) . We've also provided an amendment to your
plan inserting a new section within Article IX. Descriptions of the
changes are listed below.
Minimum Required Distributions
Final regulations regarding MRDs for defined contribution plans became
effective with calendar year 2003 distributions. The following changes
are some of the highlights of the final regulations:
• The life expectancy rule will be the default for designated
beneficiaries for all distributions. Participants and beneficiaries
will have the option to elect the 5-year rule.
• Designated beneficiaries currently covered under the 5-year rule can
elect to switch to the life expectancy rule.
• In determining the amount to be distributed under the life
expectancy rule, the account balance will not include contributions
allocated in the year, but made after the end of the year.
Transaction Processing
Enclosed is an amendment to your plan inserting a new section titled
Transaction Processing. We've also re-numbered the sections immediately
following the change to correspond accordingly, if applicable.
The Transaction Processing amendment clarifies a participant's right to
direct investments and request distributions from the plan. The new
section benefits you by explaining that transactions will be processed
when administratively practical. Additionally, this change may reduce the
instances a blackout notice must be given to your participants as required
by the Sarbanes-Oxley Act.
Enclosed is the following information:
• Model Amendment for MRD
• Transaction Processing Amendment
P.O. Box 8600, Waterloo, IA 50704-8600 2003-2997
F822PN5
Principal Spokane Principal Life
Pension Center Insurance Company
Financial Retirement and
Group Investor Services
Ms Jewel Vaughn
Page 2
October 2003
Please sign, date, and fax a copy of the signed signature pages to the
number below as soon as possible. The MRD amendment must be signed n0
later than December 31, 2003. You'll want to file the originals with your
plan documents.
As always, you can contact me if you have any questions.
Sincerely
Nancy C. Kelly
Client Service Associate
Retirement and Investor Services
Phone (509) 324-7733
cc Masoud S Shirazi
Retirement Services Office - Denver
Amy Jackson
30 2357
P.O. Box 8600, Waterloo, IA 50704-8600
F822PN-5
MODEL AMENDMENT TO COMPLY WITH THE 401(a) (9) FINAL AND
TEMPORARY REGULATIONS
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 by adopting the model
amendment set forth below.
The plan's existing minimum distribution provisions are superseded to the
extent they are inconsistent with the provisions of this model amendment,
but those provisions that are not inconsistent (such as the plan's
definition of required beginning date) shall be retained. The plan's
minimum distribution provisions are amended as follows:
ARTICLE VII. MINIMUM DISTRIBUTION REQUIREMENTS.
Section 1. General Rules
1.1. Effective Date. The provisions of this article will apply for
purposes of determining required minimum distributions for
calendar years beginning with the 2003 calendar year.
1.2. Coordination with Minimum Distribution Requirements Previously in
Effect. This amendment is not effective until calendar years
beginning with the 2003 calendar year, therefore, no coordination
i required.
1.3. Precendence. The requirements of this article will take
precedence over any inconsistent provisions of the plan.
1.4. Requirements of Treasury Regulations Incorporated. All
distributions required under this article will be determined and
made in accordance with the Treasury regulations under section
401(a) (9) of the Internal Revenue Code.
1.5. TEFRA Section 242(b) (2) Elections. Notwithstanding the other
provisions of this article, distributions may be made under a
designation made before January 1, 1984, in accordance with
section 242(b) (2) of the Tax Equity and Fiscal Responsibility Act
(TEFRA) and the provisions of the plan that relate to section
242(b) (2) of TEFRA.
Section 2. Time and Manner of Distribution.
2.1. Required Beginning Date. The participant's entire interest will
be distributed, or begin to be distributed, to the participant no
Subtype 101006 Minimum Required Distribution 1 (3)66947
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Financial
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F599PN-1 Des Moines,IA 50392-0001
later than the participant's required beginning date.
2.2. Death of Participant Before Distributions Begin. If the
participant dies before distributions begin, the participant's
entire interest will be distributed, or begin to be distributed,
no later than as follows:
(a) If the participant's surviving spouse is the participant's
sole designated beneficiary, then distributions to the
surviving spouse will begin by Decemeber 31 of the calendar
year immediately following the calendar year in which the
participant would have attained age 70 1/2 if later, except
to the extent that an election is made to receive
distributions in accordance with the 5-year rule. Under the
5-year rule, the participant's entire interest will be
distributed to the designated beneficiary by December 31 of
the calendar year containing the fifth anniversary of the
participant's death.
(b) If the participant's surviving spouse is not the
participant's sole designated beneficiary, then distributions
will begin by December 31 of the calendar year immediately
following the calendar year in which the Participant died,
except to the extent that an election is made to receive
distributions in accordance with the 5-year rule. Under the
5-year rule, the participant's entire interest will be
distributed to the designated beneficiary by December of the
calendar year containing the fifth anniversary of the
participant's death.
(c) If there is no designated beneficiary as of September 30 of
the year following the year of the participant's death, the
participant's entire interest will be distributed by December
31 of the calendar year containing the fifth anniversary of
the participant's death.
(d) If the participant's surviving spouse is the participant's
sole designated beneficiary and the surviving spouse dies
after the participant but before distributions to the
surviving spouse begin, this section 2.2, other than section
2.2(a) , will apply as if the surviving spouse were the
participant.
For purposes of this section 2.2. and section 4, unless section
2.2(d) applies, distributions are considered to begin on the
participant's required beginning date. If section 2.2(d) applies,
distributions are considered to begin on the date distributions
are required to begin to the surviving spouse under section
2.2(a) . If distributions under an annuity purchased from an
insurance company irrevocably commence to the participant before
Subtype 101006 Minimum Required Distribution 2 (3)66947
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financial
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F599PN-1 Des Moines,IA 50392-0001
the participant's required beginning date (or to the participant's
surviving spouse before the date distributions are required begin
to the surviving spouse under section 2.2(a)) , the date
distributions are considered to begin is the date distributions
actually commence.
2.3. Forms of Distribution. Unless the participant's interest is
distributed in the form of an annuity purchased from an insurance
company or in a single sum on or before the required beginning
date, as of the first distribution calendar year distributions
will be made in accordance with sections 3 and 4 of this article.
If the participant's interest is distributed in the form of an
annuity purchased from an insurance company, distributions
thereunder will be made in accordance with the requirements of
section 401(a) (9) of the Code and the Treasury regulations.
Section 3. Required Minimum Distributions During Participant's Lifetime.
3.1. Amount of Required Minimum Distribution For Each Distribution
Calendar Year. During the participant's lifetime, the minimum
amount that will distributed for each distribution calendar year
is the lesser of:
(a) the quotient obtained by dividing the participant's account
balance by the distribution period in the Uniform Lifetime
Table set forth in section 1.401(a) (9)-9 of the Treasury
regulations, using the participant's age as of the
participant's birthday in the distribution calendar year; or
(b) if the participant's sole designated beneficiary for the
distribution calendar year is the participant's spouse, the
quotient obtained by dividing the participant's account
balance by the number in the Joint and Last Survivor Table
set forth in section 1.401(a) (9)-9 of the Treasury
regulations, using the participant's and spouse's attained
ages as of the participant's and spouse's birthdays in the
distribution calendar year.
3.2. Lifetime Required Minimum Distributions Continue Through Year of
Participant's Death. Required minimum distributions will be
determined under this section 3 beginning with the first
distribution calendar year and up to and including the
distribution calendar year that includes the participant's date of
death.
Section 4. Required Minimum Distributions After Participant's Death.
4.1. Death On or After Date Distributions Begin.
(a) Participant Survived by Designated Beneficiary. If the
Subtype 101006 Minimum Required Distribution 3 (3)66947
Principal'
Financial
Group
Des Moines,IA 50392-0001
F599PN-1
participant dies on or after the date distributions begin and
there is a designated beneficiary, the minimum amount that
will be distributed for each distribution calendar year after
the year of the participant's death is the quotient obtained
by dividing the participant's account balance by the longer
of the remaining life expectancy of the participant or the
remaining life expectancy of the participant's designated
beneficiary, determined as follows:
(1) The participant's remaining life expectancy is
calculated using the age of the participant in the year
of death, reduced by one for each subsequent year.
(2) If the participant's surviving spouse is the
participant's sole designated beneficiary, the remaining
life expectancy of the surviving spouse is calculated
for each distribution calendar year after the year of
the participant's death using the surviving spouse's age
as of the spouse's birthday in that year. For
distribution calendar years after the year of the
surviving spouse's death, the remaining life expectancy
of the surviving spouse is calculated using the age of
the surviving spouse as of the spouse's birthday in the
calendar year of the spouse's death, reduced by one for
each subsequent calendar year.
(3) If the participant's surviving spouse is not the
participant's sole designated beneficiary, the
designated beneficiary's remaining life expectancy is
calculated using the age of the beneficiary in the year
following the year of the participant's death, reduced
by one for each subsequent year.
(b) No Designated Beneficiary. If the participant dies on or
after the date distributions begin and there is no designated
beneficiary as of September 30 of the year after the year of
the participant's death, the minimum amount that will be
distributed for each distribution calendar year after the
year of the participant's death is the quotient obtained by
dividing the participant's account balance by the
participant's remaining life expectancy calculated using the
age of the participant in the year of death, reduced by one
for each subsequent year.
4.2. Death Before Date Distributions Begin.
(a) Participant Survived by Designated Beneficary. If the
participant dies before the date distributions begin and
there is a designated beneficiary, the minimum amount that
will be distributed for each distribution calendar year after
Subtype 101006 Minimum Required Distribution 4 (3)66947
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F599PN-1 Des Moines,IA 50392-0001
the year of the participant'sdeath is the quotient obtained
by dividing the participant's account balance by the
remaining life expectancy of the participant's designated
beneficiary, determined as provided in section 4.1, except to
the extent that an election is made to receive distributions
in accordance with the 5-year rule. Under the 5-year rule,
the participant's entire interest will be distributed to the
designated beneficiary by December 31 of the calendar year
containing the fifth anniversary of the participant's death.
(b) No Designated Beneficiary. If the participant dies before
the date distributions begin and there is no designated
beneficiary as of September 30 of the year following the year
of the participant's death, distribution of the participant's
entire interest will be completed by December 31 of the
calendar year containing the fifth anniversary of the
participant's death.
(c) Death of Surviving Spouse Before Distributions to Surviving
Spouse Are Required to Begin. If the participant dies before
the date distributions begin, the participant's surviving
spouse is the participant's sole designated beneficiary, and
the surviving spouse dies before the distributions are
required to begin to the surviving spouse under section
2.2(a) , this section 4.2 will apply as if the surviving
spouse were the participant.
Section 5. Definitions.
5.1. Designated beneficiary. The individual who is designated as the
beneficiary under the BENEFICIARY SECTION of Article X of the plan
and is the designated beneficiary under section 401(a) (9) of the
Internal Revenue Code and section 1.401(a) (9)-1, Q&A-4, of the
Treasury regulations.
Subtype 101006 Minimum Required Distribution 5 (3)66947
Principal
Financial
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F599PN-1 Des Moines,IA 50392-0001
5.2. Distribution calendar year. A calendar year for which a minimum
distribution is required. For distributions beginning before the
participant's death, the first distribution calendar year is the
calender year immediately preceding the calendar year which
contains the participant's required beginning date. For
distributions beginning after the participant's death, the first
distribution calendar year is the calendar year in which
distributions are required to begin under section 2.2. The
required minimum distribution for the participant's first
distribution calendar year will be made on or before the
participant's required beginning date. The required minimum
distribution for other distribution calendar years, including the
required minimum distribution for the distribution year in which
the participant's required beginning date occurs, will be made on
or before December 31 of that distribution calendar year.
5.3. Life expectancy. Life expectancy as computed by use of the Single
Life Table in section 1.401(a) (9)-9 of the Treasury regulations.
5.4. Participant's account balance. The account balance as of the last
valuation date in the calendar year immediately preceding the
distribution calendar year (valuation calendar year) increased by
the amount of any contributions made and allocated or forfeitures
allocated to the account balance as of dates in the valuation
calendar year after the valuation date and decreased by
distributions made in the valuation year after the valuation date.
The account balance for the valuation calendar year includes any
amounts rolled over or transferred to the plan either in the
valuation calendar year or in the distribution calendar year if
distributed or transferred in the valuation calendar year.
5.5. Required beginning date. The date specified in the DEFINITIONS
SECTION of Article VII of the plan.
Section 6. Election to Allow Participants or Beneficiaries to Elect
5-Year Rule.
Participants or beneficiaries may elect on an individual basis
whether the 5-year rule or the life expectancy rule in sections
2.2 and 4.2 of Article VII of the plan applies to distributions
after the death of a participant who has a designated beneficiary.
The election must be made no later than the earlier of September
30 of the calendar year in which distribution would be required to
begin under section 2.2 of Article VII of the plan, or by
September 30 of the calendar year which contains the fifth
anniversary of the participant's (or, if applicable, surviving
spouse's) death. If neither the participant nor beneficiary makes
an election under this paragraph, distributions will be made in
accordance with the life expectancy rule under sections 2.2 and
Subtype 101006 Minimum Required Distribution 6 (3)66947
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F599PN-1 Des Manes,IA 50392-0001
4.2 of Article VII of the plan.
Section 7. Election to Allow Designated Beneficiary Receiving
Distributions Under 5-Year Rule to Elect Life Expectancy Distributions.
A designated beneficary who is receiving payments under the 5-year
rule may make a new election to receive payments under the life
expectancy rule until December 31, 2003, provided that all amounts
that would have been required to be distributed under the life
expectancy rule for all distribution calendar years before 2004
are distributed by the earlier of December 31, 2003 or the end of
the 5-year period.
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 bacame an Inactive Participant.
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 o-f�7 ���amember company of the Principal Financial Group.
Signed this O1 / day of k.--/` , 2003
For t e Employer,
By C`,e_ WQ
David E. Long, Chair ///�
CI 6 CI 4). 4L7mi 55/Ule,RS
Busin s Title
Subtype 101006 Minimum Required Distribution 7 (3)66947
Principal'
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F599PN.1 Des Moines,IA 50392-0001
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AMENDMENT TO ADD TRANSACTION PROCESSING SECTION
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 effective as of the signature date below, as follows:
By adding to the Table of Contents the following Section 9.07:
Section 9.07 Transaction Processing
By adding the following Section 9.07 to Article IX:
SECTION 9.07--TRANSACTION PROCESSING.
Transactions (including, but not limited to, investment directions, trades, loans, and
distributions) shall be processed as soon as administratively practicable after proper
directions are received from the Participant or such other parties. No guarantee is
made by the Plan, Plan Administer, Insurer, or Employer that such transactions will
be processed on a daily or other basis, and no guarantee is made in any respect
regarding the processing time of such transactions.
Nothwithstanding any other provision of the Plan, the Employer or the Plan
Administrator reserves the right to not value an investment option on any given
Valuation Date for any reason deemed appropriate by the Employer or the Plan
Administrator. Administrative practicality will be determined by legitimate business
factors (including, but not limited to, failure of systems or computer programs,
failure of the means of the transmission of data, force majeure, the failure of a
service provider to timely receive values or prices, and correction for errors or
omissions or the errors or omissions of any service provider) and in no event will be
deemed to be less than 14 days. The processing date of a transaction shall be
binding for all purposes of the Plan and considered the applicable Valuation Date for
any transaction.
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.
Subtype 101006 Transaction Processing 1 (3-66947)
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 datels) 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.
Signed this /7 day of (2.-U %,--le.-7c „,)&U3.
For the E �oyern
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By Da id E. L2h � + // dyniviSSIM S
Title PM lb R 1 U' WP au-n Y�
Subtype 101006 Transaction Processing 2 (3-66947)
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