HomeMy WebLinkAbout980301.tiff RESOLUTION
RE: APPROVE GROUP ANNUITY CONTRACT AMENDMENT TO 457 PLAN 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 Group Annuity Contract Amendment
to 457 Plan between the County of Weld, State of Colorado, by and through the Board of
County Commissioners of Weld County, on behalf of the Department of Finance, and Great
West Life and Annuity Insurance Company, 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 Group Annuity Contract Amendment to 457 Plan between the
County of Weld, State of Colorado, by and through the Board of County Commissioners of
Weld County, on behalf of the Department of Finance, and Great West Life and Annuity
Insurance Company 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 18th day of February, A.D., 1998.
BOARD OF COUNTY COMMISSIONERS
• WELD COUNTY, COLORADO
ATTEST: D�% $-� EXCUSED
Constt
e L. Harbert, Chair
Weld County ≥l 'tti9 a: 4// tL2 / -17
` W. H. Webster, Pro-Tem /
BY: .. r.� fir"':--: ��► fy ,�
Deputy Clerk t.�ti="y� -r
Geor a Baxter
ROV D A ORM:
Dale . Hall
unty At rney � � lf/S 7cryt__
arbara J. Kirkmeyer
980301
(?L : ,C/ le FI0027
Group Annuity Contract Amendment
The Deferred Compensation Plan (the °Plan") to which a Group Annuity Contract is offered by Great-
West Life &Annuity Insurance Company("GWL&A') hereby represents the following;
1. The Plan is not funded by an annuity contract described in Section 403(b) of the Internal
Revenue Code of 1986, as amended (the"Code").
2. No employee contributions to the Plan will be invested by the Plan in securities of the employer
or its controlled or commonly controlled entities.
3. The Plan is for the "exclusive benefit" of the employees and beneficiaries and the purpose of the
Plan is the distribution of funds accumulated under the Plan to employees or their beneficiaries.
4. The Plan understands and agrees that in the event the Plan documents should contain any
provision that would not permit GWL&A to interpret the Plan as being for the "exclusive benefit"
of participants, GWL&A will not permit the Plan to continue participation in the Group Annuity
Contract.
5. No part of the assets of the Plan shall be used or diverted to any purpose other than for the
benefit of the employees or their beneficiaries prior to the satisfaction of all the Plan's liabilities
to the employees and beneficiaries; however, to the extent necessary to retain qualification
under Section 457 of the Code, prior to the earlier of (a) the Plan assets being placed in trust
pursuant to Section 457(g) or (2) January 1, 1999, these assets shall remain subject to the
claims of the general creditors of the employer.
6. Any request to withdraw assets from the Group Annuity Contract is subject to the requirements in
paragraph 7 below, must be in writing and must detail the reasons for the withdrawal. In
honoring any withdrawal request, GWL&A may rely on any written statement it reasonably
believes is submitted in good faith by the Plan.
7. The assets of the Plan may not be withdrawn from the Group Annuity Contract except for the
following purposes;
a. To pay benefits to an employee participating in a 457 Plan;
b. To transfer assets to the 457 Plan's trustee, custodian, annuity provider or other person,
as applicable, designated by the sponsoring employer in case the contract is terminated
or a withdrawal is made for the purpose of using another investment provider or
investment arrangement;
c. To distribute Plan assets to participating employees in the event the Plan is terminated
pursuant to a plan of liquidation;
d. To reimburse an employer for any 457 Plan benefits that the employer may have paid
out of its assets, or to correct an excess deferral or other mistaken investment under the
contract;
e. Prior to the earlier of(1)the Plan assets being placed in trust pursuant to Section 457(g),
or(2) January 1, 1999,to transfer Plan assets to a trustee in bankruptcy in the event of
the employer's insolvency or bankruptcy or to any other agent independent of the
employer authorized to act in such proceedings; or
457 er letter_doc
280301
f. Prior to the earlier of(1)the Plan assets being placed in trust pursuant to Section 457(g),
or (2) January 1, 1999, to satisfy the claims of the employees general creditors in the
event of the employer's insolvency or bankruptcy.
g. For purposes of this e. and f. of this paragraph 7, `insolvency" shall mean a
circumstance in which the employer is unable to pay its debts as they become due, or is
subject to a pending proceeding under the United States Bankruptcy Code. A
withdrawal based on a claim of insolvency must be based on a determination made by
the highest governing body of the employer, as well as its highest executive officer,
after notice of a public hearing has been given and a public hearing has been held on
the subject of the employer's insolvency.
8. Unless plan assets have already been placed in trust pursuant to Section 457(g),the Plan agrees
that disclosure will be provided to all participants which prominently states that, until the earlier
of(1)the plan assets being placed in trust pursuant to Section 457(g), or(2) January 1, 1999, (a)
the amounts allocated to the Group Annuity Contract will be subject to the claims of the
employees general creditors as required by the Code, and (b) the potential risks (including
access by general creditors of the employer to Plan assets; of investing in the 457 Plan.
Weld County Defe ed Com ensation P,I 111 1ylk,„
Na a of Group Policyholder
By: 3.
Name: Constance L. Harbert =r
Title: Chair, Board of Weld Count tfia issigpga$k
February 18, 1998 w `9 ,
457 er letter.doc
** TOTAL PAGE.05 4*
2803?1
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