HomeMy WebLinkAbout20000212 RESOLUTION
RE: APPROVE GOOD FAITH COMPLIANCE AMENDMENT TO 401K SAVINGS PLAN
FOR ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001 AND
AUTHORIZE CHAIR TO SIGN
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 a Good Faith Compliance Amendment
to the 401K Saving Plan for Economic Growth and Tax Relief Reconciliation Act of 2001 from
the County of Weld, State of Colorado, by and through the Board of County Commissioners of
Weld County, on behalf of the Personnel Department, to Principal Financial Group,
commencing January 1, 2002, with further terms and conditions being as stated in said plan
amendment, and
WHEREAS, after review, the Board deems it advisable to approve said plan
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 Good Faith Compliance Amendment to the 401K Savings Plan
for Economic Growth and Tax Relief Reconciliation Act of 2001 from the County of Weld, State
of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of
the Personnel Department, to 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 plan 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., 2001.
BOARD OF C UNTY COMMISSIONERS
���� E WELD CO TY, COLORADO
ATTEST: �� ��'[/�
a M. J. ile, Ch it
Weld County Clerk to the f ,v r3
•
, f y� lenn Vaa em BY: IDeputy Clerk to the Boat' ` f✓
Wi erk
APP ED AS M: C Oce
vi E. Long(
11
ount a Aherc(ey
Robert D. Masden
Date of signature: /-1d
2001-3442
'tC PE0019
GOOD FAITH COMPLIANCE AMENDMENT FOR 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. Except as otherwise provided, this
amendment shall be effective as of the first day of the first Plan Year beginning after
December 31, 2001.
This amendment shall supersede 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 Employer the right to amend it at any time. According to
that right, the Plan is amended as follows:
INCREASE IN COMPENSATION LIMIT
For Plan Years beginning on and after January 1, 2002, the annual Compensation of each
Participant taken into account for determining all benefits provided under the Plan for any
determination period shall not exceed $200,000, as adjusted for increases in the cost-of-
living 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 in such calendar
year.
If Compensation for any prior determination period is taken into account in determining a
Participant's contributions or benefits for the current Plan Year, the Compensation for such
prior determination period is subject to the applicable annual compensation limit in effect for
that determination period. For this purpose, in determining contributions or benefits in Plan
Years beginning on or after January 1, 2002, the annual Compensation limit in effect for
determination periods beginning before that date is 5200,000.
LIMITATIONS ON CONTRIBUTIONS
Effective date. This section shall be effective for Limitation Years beginning after December
31, 2001.
Maximum Annual Addition. Except to the extent permitted in the Catch-up Contributions
section of this amendment that provides for catch-up contributions under EGTRRA section
631 and Code Section 414(v), if applicable, the Annual Addition that may be contributed or
allocated to a Participant's Account under the Plan for any Limitation Year shall not exceed
the lesser of:
a) 540,000, as adjusted for increases in the cost-of-living under Code Section 415(d), or
b) 100 percent of the Participant's Compensation, for the Limitation Year.
The compensation limitation referred to in (b) shall not apply to any contribution for medical
benefits after separation from service (within the meaning of Code Section 401(h) or
419A(f)(2)) which is otherwise treated as an Annual Addition.
2001-3442
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Elective Deferral Limits. The cap (or the choice to not include a cap) on Elective Deferral
Contributions will not change, unless otherwise specified below.
a) ❑ (Increase the cap.) Increase the cap on Elective Deferral Contributions to
% of Compensation.
b) ' (Remove the cap.) The cap on Elective Deferral Contributions shall no longer apply.
c) ❑ (Add a cap.) The Plan does not currently cap Elective Deferral Contributions. A
Participant may not defer more than _ % of his Compensation for (Select one.)
i) ❑ for the Plan Year.
ii) ❑ for the pay period.
iii) ❑ for the month.
ELECTIVE DEFERRALS — CONTRIBUTION LIMITATION
No Participant shall be permitted to have Elective Deferral Contributions, as defined in the
EXCESS AMOUNTS Section, made under this Plan, or any other qualified plan maintained by
us, during any taxable year in excess of the dollar limitation contained in Code Section
402(g) in effect for such taxable year, except to the extent permitted in the Catch-up
Contributions section of this amendment that provides for catch-up contributions under
EGTRRA section 631 and Code Section 414(v), if applicable.
CATCH-UP CONTRIBUTIONS
Effective Date. This section shall apply to Contributions received after December 31, 2001.
Catch-up Contributions. All employees who are eligible to make Elective Deferral
Contributions under this Plan and who have attained age 50 before the close of the Plan
Year shall be eligible to make catch-up contributions in accordance with, and subject to the
limitations of, Code Section 414(v), unless otherwise specified below. Such catch-up
contributions shall not be taken into account for purposes of the provisions of the Plan
implementing the required limitations of Code Sections 402(g) and 415. The Plan shall not
be treated as failing to satisfy the provisions of the Plan implementing the requirements of
Code Section 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416, as applicable, by reason of
the making of such catch-up contributions.
a) ❑ Catch-up Contributions are not permitted.
DIRECT ROLLOVERS OF PLAN DISTRIBUTIONS
Effective date. This section shall apply to distributions made after December 31, 2001.
Modification of definition of Eligible Retirement Plan. For purposes of the DIRECT
ROLLOVER Section, an Eligible Retirement Plan shall also mean an annuity contract
described in Code Section 403(b) and an eligible plan under Code Section 457(b) which is
maintained by a state, political subdivision of a state, or any agency or instrumentality of a
state or political subdivision of a state and which agrees to separately account for amounts
transferred into such plan from this Plan. The definition of Eligible Retirement Plan shall also
Subtype 101006 EGTRRA-1 2 Group Annuity No. GA 3-66947
apply in the case of a distribution to a surviving spouse, or to a spouse or former spouse
who is the alternate payee under a qualified domestic relations order, as defined in Code
Section 414(p).
Modification of definition of Eligible Rollover Distribution to exclude hardship distributions.
For purposes of the DIRECT ROLLOVER Section, any amount that is distributed on account
of hardship shall not be an Eligible Rollover Distribution and the Distributee may not elect to
have any portion of such a distribution paid directly to an Eligible Retirement Plan.
Modification of definition of Eligible Rollover Distribution to include after-tax employee
contributions. For purposes of the DIRECT ROLLOVER Section, a portion of a distribution
shall not fail to be an Eligible Rollover Distribution merely because the portion consists of
after-tax employee contributions which are not includible in gross income. However, such
portion may be transferred only to an individual retirement account or individual retirement
annuity described in Code Section 408(a) or (b), or to a qualified defined contribution plan
described in Code Section 401(a) or 403(a) 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.
ROLLOVERS FROM OTHER PLANS
The Plan will accept Participant Rollover Contributions and/or direct rollovers of distributions
made after December 31, 2001 from the types of plans specified below beginning January
1, 2002. The Plan will accept all of the following sources of rollovers, unless otherwise
specified in (a) below.
Direct Rollovers
The Plan will accept a direct rollover of an Eligible Rollover Distribution from:
i) a qualified plan described in Code Section 401(a) or 403(a), including after-tax
employee contributions.
ii) an annuity contract described in Code Section 403(b), excluding after-tax employee
contributions.
iii) an eligible plan under Code Section 457(b) which is maintained by a state, political
subdivision of a state, or any agency or instrumentality of a state or political
subdivision of a state.
Participant Rollover Contributions from Other Plans
The Plan will accept a Participant contribution of an Eligible Rollover Distribution from:
i) a qualified plan described in Code Section 401(a) or 403(a).
ii) an annuity contract described in Code Section 403(b).
Hi) an eligible plan under Code Section 457(b) which is maintained by a state, political
subdivision of a state, or any agency or instrumentality of a state or political
subdivision of a state.
Participant Rollover Contributions from IRAs
The Plan will accept a Participant Rollover Contribution of the portion of a distribution
from an individual retirement account or individual retirement annuity described in Code
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Section 408(a) or (b) that is eligible to be rolled over and would otherwise be includible
in gross income.
(Select (a) if you want to allow only certain sources of rollovers.)
a) ❑ The Plan will accept Participant Rollover Contributions and/or direct rollovers of
distributions made after December 31, 2001 from the types of plans specified below
beginning January 1, 2002. (Select any that apply.)
Direct Rollovers
The Plan will accept a direct rollover of an Eligible Rollover Distribution from:
i) ❑ a qualified plan described in Code Section 401(a) or 403(a), including after-tax
employee contributions.
ii) ❑ a qualified plan described in Code Section 401(a) or 403(a), excluding after-tax
employee contributions. (Cannot select if (i) is selected.)
iii) ❑ an annuity contract described in Code Section 403(b), excluding after-tax employee
contributions.
iv) ❑ an eligible plan under Code Section 457(b) which is maintained by a state, political
subdivision of a state, or any agency or instrumentality of a state or political subdivision
of a state.
Participant Rollover Contributions from Other Plans
The Plan will accept a Participant contribution of an Eligible Rollover Distribution from:
i) ❑ a qualified plan described in Code Section 401(a) or 403(a).
ii) ❑ an annuity contract described in Code Section 403(b).
iii) El an eligible plan under Code Section 457(b) which is maintained by a state, political
subdivision of a state, or any agency or instrumentality of a state or political subdivision
of a state.
Participant Rollover Contributions from IRAs
The Plan will accept a Participant Rollover Contribution of the portion of a distribution from
an individual retirement account or individual retirement annuity described in Code Section
408(a) or (b) that is eligible to be rolled over and would otherwise be includible in gross
income, unless otherwise specified below.
i) ❑ Participant Rollover Contributions from IRAs are not permitted.
ROLLOVERS DISREGARDED IN INVOLUNTARY CASH-OUTS
Rollover Contributions will be included in determining the value of account balances for
involuntary distributions, unless otherwise specified below. (NOTE: Can only select (a) if
the Plan is not subject to the qualified joint and survivor annuity requirements of Code
Sections 401(a)(11) and 417.)
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a) ❑ Rollover Contributions are excluded in determining the value of the Participant's
nonforfeitable balance for purposes of the Plan's involuntary cash-out rules for
distributions made after (No earlier than
December 37, 2001.) with respect to Participants who separated from service after
. (The date may be earlier than December 31,
2001.)
REPEAL OF MULTIPLE USE TEST
The multiple use test described in Treasury Regulation section 1.401(m)-2 and the EXCESS
AMOUNTS Section shall not apply for Plan Years beginning after December 31, 2001.
DISTRIBUTION UPON SEVERANCE FROM EMPLOYMENT
Effective date. This section shall apply for distributions due to severance from employment
occurring after December 31, 2001 and distributions that are processed after December 31,
2001 regardless of when the severance from employment occurred.
New distributable event — Distribution Upon Severance From Employment. A Participant's
Elective Deferral Contributions, Qualified Nonelective Contributions, Qualified Matching
Contributions, and earnings attributable to these Contributions shall be distributed on
account of the Participant's severance from employment. However, such a distribution shall
be subject to the other provisions of the Plan regarding distributions, other than provisions
that require a separation from service before such amounts may be distributed.
Signed this 1 71-h day of Harps
b r ' 9991 •
By
M.J Geile (/(2//7/aCC
Chair Rnard Walt' rniinry rn mscsioners
Title
Subtype 101006 EGTRRA-1 5 Group Annuity No. GA 3-66947
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