HomeMy WebLinkAbout861426.tiff RESOLUTION
RE: APPROVAL OF AMENDMENTS TO THE WELD COUNTY 401 (K) SAVINGS
PLAN AND AUTHORIZATION FOR THE CHAIRMAN TO SIGN SAME
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 of County Commissioners of Weld County
approved a 401 (K) Savings Plan on October 29 , 1984 , to be
effective January 1 , 1985 , and
WHEREAS, the 401 (K) Savings Plan was submitted to the
Internal Revenue Service for a determination letter, and
WHEREAS, the Internal Revenue Service indicated in a
letter dated September 12 , 1986 that in order to process Weld
County' s request, certain amendments to the 401 (K) Savings Plan
must be made, and
WHEREAS, said amendments were approved by the Board on
September 22, 1986 , and
WHEREAS, the Internal Revenue Service, upon further
review, has indicated only portions of the amendments are
necessary and staff recommends rescinding those amendments
passed September 22 , 1986 , and
WHEREAS, the required revised amendments, attached hereto
and incorporated herein by reference, have been prepared and
are recommended for Board approval.
NOW, THEREFORE, BE IT RESOLVED by the Board of County
Commissioners of Weld County, Colorado that the aforementioned
amendment to the 401 (K) Savings Plan, approved on September 22 ,
1986 be, and hereby are, rescinded.
BE IT FURTHER RESOLVED by the Board of County
Commissioners that the revised amendments, attached hereto and
incorporated herein, are hereby approved.
BE IT FURTHER RESOLVED by the Board of County Commissioners
that the Chairman be, and hereby is, authorized to sign same.
IIIIIIIIII
861426
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 1st day of
October, A.D. , 1986.
`�` BOARD OF COUNTY COMMISSIONERS
ATTEST: l GtA.ytotni WELD COUNTY, COLORADO
Weld County Clerk and Recorder • _;„
and Clerk to the Board J-cqu R,i ee , n-on Chairman
'
0
L �IK-c-2J 1Jt1L6J G. ;:. iw. . Lai, .' Tem
D puty County erk
APPROVED AS TO FORM: e R. :ran ner
Le: " /
C. W. Kirby
-h,.;l, County Attorney / � hi �t
Fr - ' lar
AMENDMENT NO. 1
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
January 1, 1985,
by striking the following:
Page 23
Page 24
Page 26
and substituting the following, dated 1-1-85:
Page 23
Page 24
Page 26
The provisions contained on any page which is substituted in or is
added to the Plan by this amendment are a part of the Plan as fully as if
they were recited over the signature(s) below.
By executing this amendment, the Employer acknowledges having counseled
to the extent necessary with selected legal and tax advisors regarding the
amendment's legal and tax implications.
Executed this 1st day of October , 19 86 •
WELD COUNTY
B -- \
-- airman, Board County Commissioners
Title
•
(66947)
AMEND. NO. 1 PAGE DTD. 1-1-85 CODE A; REPL. PAGE DTD. All Prior
required and optional employee contributions to which such
employer contributions were geared shall be reduced in proportion.
If, for the Limitation Year, the Participant has an Annual
Addition under more than one defined contribution plan or welfare
benefit fund maintained by the Employer, any reduction above shall
be made first to the profit sharing plans, then to all other such
plans and, if necessary, by reducing first those that were most
recently established. The annual addition to the welfare benefit
fund shall be limited last.
SECTION 3.04--SALARY DEFERRAL LIMITATION.
(a) For the purpose of determining the salary deferral limits set forth in
this section, the following terms are defined:
Actual Deferral Percentage means, for a group of Active Participants
with respect to a Plan Year, the average of the Deferral Ratios of each
of the Active Participants within such group.
Deferral Ratio means, for an Active Participant with respect to a Plan
Year, the amount of Salary Deferral Contributions divided by his
Compensation taken into account for that Plan Year. Only Employer
Contributions that satisfy the nonforfeitability and withdrawal
limitations of Code Section 401(k) may be used in computing the
Deferral Ratio.
Highly Compensated Employee means any Active Participant who receives,
with respect to the Compensation taken into account for that Plan Year,
more Compensation than two-thirds of all Active Participants.
(b) As of the end of any Plan Year, one of the following tests must be met:
(1) 150% test. The Actual Deferral Percentage for the group of Highly
Compensated Employees is not more than the Actual Deferral Per-
centage for all other Active Participants multiplied by 1.5.
(2) 250%-3% difference test. The Actual Deferral Percentage for the
group of Highly Compensated Employees is not more than the Actual
Deferral Percentage for all other Active Participants multiplied
by 2.5 and the difference between the Actual Deferral Percentages
is not more than 3.
ARTICLE III 23 (66947)
AMEND. NO. 1 PAGE DTD. 1-1-85 CODE A; REPL. PAGE DTD. All Prior
The wording on this page has been deleted.
ARTICLE III 24 (66947)
AMEND. NO. 1 PAGE DTD. 1-1-85, CODE A; REPL. PAGE DTD. All Prior
ARTICLE V
BENEFITS
SECTION 5.01--RETIREMENT BENEFITS.
On a Participant's Retirement Date, his Vested Account shall be
distributed to him according to the provisions of Article VI.
SECTION 5.02--DEATH BENEFITS.
If a Participant dies before his Retirement Date, his Vested Account
shall be distributed according to the provisions of Article VI.
SECTION 5.03--VESTED BENEFITS.
An Inactive Participant's Vested Account shall be held for him until
the earlier of his Retirement Date or death and shall then be applied as
described in the preceding sections of Article V. However, the Participant
may receive an earlier distribution under this section.
Unless the Plan Administrator directs otherwise, if after a Participant
ceases to be an Employee and before again becoming an Employee, his Account
resulting from Employer Contributions is not more than $3,500, his Vested
Account will be paid to him in a single sum.
An Inactive Participant may elect to receive a distribution of his Vested
Account after he ceases to be an Employee. However, if he is reemployed, he
will not be entitled to a distribution until a subsequent termination of
employment. A distribution under this paragraph will be a retirement benefit
and shall be distributed to the Participant according to the provisions of
Article VI.
Some or all of an Inactive Participant's Vested Account may be trans-
ferred directly to the trustee, named fiduciary or insurer under the retire-
ment plan of the Inactive Participant's current employer if the following
requirements are met: the Inactive Participant would be eligible to receive
a distribution of the amount transferred at the time the transfer is to
occur; the amount transferred, if distributed to the Participant, would
qualify as a rollover contribution which the Code permits to be transferred
to a plan that meets the requirements of Code Section 401(a); the current
employer's plan meets the requirements of Code Section 401(a) . The
Participant must request the transfer in writing, and the trustee, named
fiduciary or insurer under the plan must be willing to accept such a
transfer. Such transferred amount shall be treated as a distribution under
this Plan.
ARTICLE V 26
(66947)
— Department of the Treasury --
Interna1-Reirenue Service —�
1100 COMMERCE ST . CODE 431 In reply refer to: 75160056
DALLAS TX 75242 NOV . 04, 1986 LTR 835AU
84-6000813P
00222
3
WELD COUNTY <Wit..�
915 10TH ST
GREELEY CO 80631 r' T
N0V 61986
M7^-ii.:LEY. C'OL.O.
District Office Code and
Case Serial Humber : 846084071 EP
Name of Plan: Weld County 401 K Savings Plan
Application Form: 5301
Date Adopted : Oct. 29, 1984
Date Amended: 092286
Employer Identification Humber: 84-6000813
Plan Number : 005
File Humber : 840014827
Dear Applicant:
Based on the information supplied, we have made a favorable
determination on your application identified above. Please keep
this letter in your permanent records .
Continued qualification of the plan will depend on its effect in
operation under its present form. (See section 1 .401-1 (b) (3) of the
Income Tax Regulations . ) The status of the plan in operation will be
reviewed periodically.
The enclosed document describes some events that could occur after
you receive this letter that would automatically nullify it without
specific notice from\ us . The document also explains how operation of
the plan may affect a favorable determination letter, and contains
information about filing requirements.
This letter relates only to the status of your plan under the
Internal Revenue Code . It is not a determination regarding the
effect of other Federal or local statutes . •
This determination is subject to your adoption of the proposed
amendments submitted in your or your representative 's letter dated
100286 . The proposed amendments should be
adopted on or before the date prescribed by the regulations under
Code section 401 (b) .
The following four pages were filmed in November 10, 1986, Communications.
..memo, nevel,ue aerv,ce
75160056
NOV. 04, 1986 LTR 835AU
84-6000813P
00223
WELD COUNTY
915 10TH ST
GREELEY CO 80631
This determination does not apply to any year in which the plan fails
to meet either subparagraph Ca) or Cb) of section 410 (b) ( 1 ) and the
deferral percentagetest of section 401 (k) (3) of the . code .
If you have any questions, please contact E P Tech Assistor at
214-767-1204.
Glenn Cagle
District Director
Enclosures :
Publication 794
LMSA 645
Department of the Treasury Introduction the classification test untler
Thispublicationpoints out some operational
erage410(b )(B) but the plan fail. e , _u:
Internal Revenue Service erage requirements in c '
features that may affect the qualified status of no longer apply to tics plan fr h t st-r tai:
your employee benefit plan, and provides infor- cease to apply when the defer: .• roru'a<,
mation on the reporting requirements for your Publication 794 plan. arises.
(Rev. March 1985) A plan is ct ii,„S.,ad as r
How to Use a Favorable quirements for the whole plan year if it lane,
the requirements on at least one day of ernin
Favorable Determination Letter quarter of that year.
A favorable determination letter gives the em- 2) Allocation of forfeitures. employee 'fan
Determination ployer a basis for deducting contributions to an over results in the allocation c 'ogle
employee benefit plan.Whether a plan qualifies cipally to officers, sharehold rya. and i Hy
is determined from the information in the writ- compensated employees, a faros„ore d:'"'
Letter ten plan document and the supporting informa- nation letter will cease to apply
tion submitted by the employer. A favorable
determination letter indicates that the terms of 3) Amendments to the plan. A f‘grab'-sat',
the plan conform to the requirements of section mination letter may no longer _p;:.l; It 'he:^ ir. r;
401(a)of the Internal Revenue Code.The actual change in a statute, a regulaboe or e r..vs:
operation of the plan determines whether it will ruling applicable to the qualification I .!,. v'r-r
continue to qualify. If the determination letter no longer apo!:es tO
Generally, a plan qualifies in operation if it is the plan, the plan must be amended to compiy
maintained according to the terms on which the with the new requirements to maint�, its qu:[ii
favorable determination letter was issued. How- fied status. However, the determinatior: '�etlLar
How-
ever,conditions may develop in operation that will continue to apply for years befog. 'he f:r:'.:
five date of the statute, regulation. or •e
do not follow the written plan document, and •re^.c.
they may jeopardize the plan's qualification. ruling.
Generally,if a regulation changes. air
Conditions Adversely Affecting ment must be adopted by the end of the first
a Favorable Determination Letter plan year beginning after the adoption date nl
the regulation Generally, if a revenue quint
Examples of common operational features changes,the amendment must be adopt'-d H.
that adversely affect a favorable determination the end of the first plan year beginning °t.: i,
are: publication date of the revenue ruli nn _!_!,.-
amendment must be effective nut I,il .r
1) Not meeting coverage requirements. If a first day of the first plan ye inn.
plan satisfies the coverage requirements of sec- the revenue ruling is publish,. : i!;.,.
tion 410,when the favorable determination let- certain requirements are sane,=FA, tn.' tii
ter is received, by meeting either the
retropercentage test under section 410(b)(1)(A)or ment may be adopted Furth y
close of that year. For further '''o-sum,' c
p� troactive amendments, see Pi lol. .r2ii
/O 1982-1 C.B.61.' ' 8nt r=
TAXES Reporting Requirements
Most plan administrators or e:n,ployec. r, •r
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U.S. Department of Labor Office of Pension and Welfare Be efit f am:
Washington, D . 20210
I A'
To: Administrators of Employee Pension
and Welfare Benefit Plans
The Employee Retirement Income Security Act of 1974 (ERISA)
requires administrators of employee pension benefit plans
(pension, profit sharing and other plans that provide retire-
ment income to employees or result in a deferral of income by
employees for periods extending to the termination of covered
employment or beyond) , and employee welfare benefit plans
(medical , surgical, hospital, sickness, accident , disability,
death, unemployment, vacation, training, scholarship funds,
prepaid legal services , etc. ) to meet certain reporting and
disclosure requirements. Within 120 days after a new plan comes
into existence , plan administrators are to file a summary plan
description (SPD) with the Secretary of Labor. A summary plan
description also must be provided to each plan participant and
beneficiary within 120 days after the establishment of a plan.
However, certain fully insured welfare plans with tt ve.r than ' 0i::
participants are exempt from the requirement to ti, z1( turnar
plan description with the Secretary.
For further information about the summary pia: i ::)= an:;
other reporting and disclosure requirements of I 'SP. c.',nt art
the nearest Area Office of the Labor Department: ' ,, Of;:ice of
Pension and Welfare Benefit Programs (see list on reverse side) .
Alan D. Lebowitz
Acting Administrator
Office of Pension and
Welfare Benefit Programs
OPWBP 515 ( 4/85 )
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