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HomeMy WebLinkAbout08-94 RESOLUTION NO. 8-94 A RESOLUTION of the City Council of the City of Port Angeles, Washington, approving IDS Financial Services and Great West Life Insurance as companies offering deferred Compensation program investment options for City employees. WHEREAS, the City has a desire to enhance the investment options for employee retirement security, as part of the comprehensive benefit package offered by the City; and WHEREAS, the City of Port Angeles currently offers a deferred compensation plan through the International City Managers Association (ICMA); and WHEREAS, through a formal evaluation process, the City has selected two additional companies to offer deferred compensation programs to City employees; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Angeles as follows: Section 1. The City of Port Angeles City Council approves IDS Financial Services and Great West Life Insurance Company to offer City employees a deferred compensation plan and authorizes the City Manager to sign and execute the necessary documents to make the plan(s) effective. Section 2. The City of Port Angeles adopts the attached deferred compensation plan document as the official terms and conditions of the City's deferred compensation plan for ICMA, Great West Life, and IDS Financial Services. Section 3. The Human Resources Office shall be the coordinator for the deferred compensation plan(s) and shall receive the various reports, notices, and correspondence, and shall assist employees with the enrollment process on a periodic basis. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the 19th day of July, 1994. M A Y O ~ ' ATTEST: B--eck~'J~-~on, ~itY Clerk APPR~AS TO FORM: Craig D.\Knutson, City At~-%orney 08/89 DEFERRED COMPENSATION PLAN DOCUMENT ARTICLE L INTRODUCTION and who has been d.~si§~,ated by the Employer as The Employer herebyestablishesthe Employer'sDelrerred eligible to participate in the Plan. Compensation Plan, hereinafter referre,~j lo as the ~Plan." Section 2.06 includible Compensation: The amount of The Plan consists of the provisions set forll3 in this docum en~. an Employee's compensation from the Employer for 'The primary purpose of this Plan is to provide retirement a taxable year ~hat is at;ributable to services per- formed for the Employer and that is includible in t~he i~ccma ;,nd ether ~leferred benefits to the Employees cf the Emp!oyee's gross income for the ~axable year for Employer in accordance with the pmvisions of Section 457 of th e (ntemeJI Raver, ua Code of 1 §~6, as amended (the'Code") federal income tax purposes; such term does not ' include any amount excludable from g~'oss income This Plan shall be an agreement solely between the under this PIan or any oil',er plan described i~ Employer and participating Employees. Section 457(b) cf the Code or any other amount excludable from gross income/ct fee oral income tax purposes. Includible Compensation snell be deter- ARTICLE II. DEFINITIONS mined without regard to any community property laws. Seclfon 2.01 Account: The bookkeeping account maintained for each Padicipant reflecting the cu- Section 2.07 Jolnder Agreement: An agreement en- mulative amount of the Part;clpant's Deferred Com. tere~ into between ar~ Employee and the Employer, pensation, including any income, gains, losses, or including any amendmenm or modifications thereof. increases or decreases in market value attributable Such agreemer, t shaJl fix the amount of Del'erred to the Employer's investment of the Particip&nt'S Comper~sation, specify a preference among the Deferrc-.d Compensation, and turther reflecting any tnvestmentalternatives designated by the Emproyer, distributions to the Participant or the Participant's designate the Employee's Beneficiary or Benefic~a- Genefidary and any Ieee or expenses charged rios, and incorporate the terms, conaittons, and against such Participant's Del'erred Compensation. provisions of the Plan by reference. Section 2.02 Administrator: The person or persons Section 2.08 Normal Compensation: The amount ol named to carry out certain nondiscretionary ad- compensation which would be payabie to a Partici- ministrativa functions under lne Plan, as hereinafter pant by the Employ/er for a taxable year if no Joinder clescribed. The Employer may remove any person Agreement were in effect to defer compensation as Administrator upon 60 days' advance notice in under ~his Plan. writing to such person, In which case the Employer shall nsma another person or persons to act as Section 2.09 Normal Retirement Age: Age 70.1/2, un- Administrator. The Admir~istrator may resign upon less the Participant has eiected an alternate Normal 60 days' a~lvance notice in writing to tl~e Employer, Retiremen~ Age by wdtten inmrument delivered to i~ which case the Employer sh;~l{ name another the A(3ministretor orior to Separation from Service. person or persons to act as Administrator. A Participant's Normal Retirement,Age determines the period during which a PArticipant may utilize the Section 2.03 Beneficiary: The person or persons desig- catch-up limitation Of Section 5.02 ~ereunder. Once nated by the Participant in his Joinder Agreement a Participant has to a~y extent utilized the catch-up who Sh~ll receive any benefits payablehereunderin limitation of Section 5.02, his/her Normal Retire- the event of the Participant's death. In tl~e event that meat age may not be changeO. the Participant names two or more Beneficiaries, eac~ Beneficiary shell be ent,'tled to equal shares of A Participant'S alternate Normal Retirement Age [he benefits payable at the Participant's death, un- may not be e~rl[er ~han the e~liest date that the less otherwise provided in the Participant's Jolnder Participant will become eligible to retire and receive unreduce(~ retire meat benefits ~naer~he Employer's Agreement. If no beneficiary is designated in the Joinder Agreement, If the Designated Beneficia.n/ basic retirement plan covering the P~rticipant Sn<~ predeceases ~he Participant, or il' the designated may not be later tna~, the clare tl~e Participant will Beneficiary does not survive the Parlicipant for a attain age 70-1/2. If a Participant continues employ- period of fifteen (I5) days, then the estate of the meat after attaining age 70-112, ~ot saving pravi- Participant shall be the Beneficial. ously e!ected an alternate N~rmal Retirement Age, ;,he Participant's alternate Normal Ret. iremertt Age Section 2.04 Deferred Compensation: The amount cf shall not be later the)the manOato~' retirement age, Normal Compensation otherwise p;~yal31e to the if any, estabhshed by the Employer, or the age at Padlcipant which the Participant ac, d the Employe~ which the Participant actuaIly separates from se~- mutually agree to defer hereun(:ter, a~y amount vfce if the Employer has no mandatory retirement credite~i to a Participant's Account by reason of a age. If ',he Participan~ will riot become eligible to transfer under section 6,03, or any other amount receive benefits under a i~asic retirement plan which the Employeragrees ~o credit to a Participant's maintained by the Employer, the Part.:ipant's alter- Account. nam Normal Retirement Age may not De earlier than Sectfon 2.05 Employee; Any indivtdua~ who provides age 55 and may not be Iater than age 70-1/2, services for the Employer, whether as an employee Section 2.10 Participant: A ny Employee wac has joined of the Employer or as an independen! conlractor, the Plan pursuan~ to the re~uJrem~'nls o~ Article IV. ~ection 2.11 PJun Year: The celenclar year, Section 5.02 Catch. Up Limitation: For each ct the test Section 2.12 Retirement: The first date upon which both ~hree (3) taxable years of a Participant en~3ing be- of the ~cllowin{~ shall have Occurred with respeCt t'o fore his affainment of NormaJ Retirement Age, me a participant: Separation from Service and attain- maximum amount of Deferred Compensation sha~l ment Of age 65. be the lesser of: (1) $1S,000 or (2) the sum of (i) the Iqormal Limitation for the laxable year, and (ii) the Section 2,15 Separation from Service: Severance cf Norma! Limitation for each prior taxable year of the the Participant's employment with the Empi(~yer Participam commencing alter 1978 lessthe amount whicl~ co~tilutes a "separation from service" wi[hi,~ of the Participant's Deferred Compensation for aucln the meaning Of Section 402(e)(4)(A)(iii)or,he Cede. prior taxable years, A prior taxable year shall be In general, a Participant sh~{I be cieemed to have taken into account under the p~'ececling sentence severed his employment with the Employer tot pur- only if fi) the Pa,.tfCil:ant was eligible to participate in poses of this Plan when, in accordance with the the Plan for Such year ~or in any other eligible establishe(~ practices of the Employer, the employ- deferrecl compensation plan established under ment relationship is consiclereo [o have actually Section 457 of the Code which isproperly tab;eh into terrninaled. In Ihe ~se of a Parficipan~ who is ~ account pursuant to,~egulations under section 457), independentcontractorofthe Employer, Sepayat~cn ane (ii) compensation {if any) deferred under the from Service Shall be deeme(l to nave occurre0 Plan (crsuch other plan) wes subjectlo the deferral when the Participant's contract u.~der which sar- Jimitations set forth in Section 5.01. vices a~e performed has completely expired an~ terminate~i, there is no foreseeable possibility thai Section 5,03 Other Plans: The amount excludable ~rom the EmplOyer will renew the contract or enter into a a P&rt;cipant's gross income under this Plan or any new contract forthe Padicipant's sen/ices, and it is other efigible deferre~ comoen~atior~ plan under not anticipated that the Participant will become an section 457 ct the Code shall not excee~ $7,500.00 Employee cl the Employer. (or such greater a mount allowed under Section 502 of the Plan). [~ss an.y ~mount exoluded from gross income uncler section 403(b), 402(a)(8), or 402 ARTICLE III. ADMINISTRATION [h)(1)(B) of t~',e Cocle, or any amount wilh respect to which a (~eduction is ~,llowable by rea. son o~ a Section 3.01 Duties of Employer: The Employer ~hal[ contribution to an organiz~ttion described in section havetheeuthoritytomak~ ali discretior~ry decisions 501(c)(18) o[ tr~e Code. affectin~ the dghts or benefits of P~trticipan~ which may be required in the administration of this Plain. ARTICLE VI, INVESTMENTS AND ACCOUNT VALUES Section 3.02 Dutle~ of Administrator: The Adminis- trator, as agent for ~e Employer, shall perfcrm Section 6.01 Investment of Delerred Compensation: nondl$cretfonary administrative functions in con- All investments of Padicip&nt's Deferred Compen- nection with the PJan, including the maintenance of sation maae by the Employer, inclucl, ing ali property Participants' Acc~unls, the provision ct periodic anti rights purchased with Such amounts and ail reports of the status of each Account, and the income attributa01e thereto, shall be the sole prop- ¢~isbursement of benefits on Dehal! of the Employer e~y of the Employer and shall not be held in trust for in acc0rclance with the provisions of th]~ Plan. Participants or as collateral security forthe fulfillment of the Employer's obligations under the Plan. Such ARTICLE IV. PARTICIPATION IN THE PLAN property shall be subject lo the claims of general SecUon 4.01 tnttlal Participation: An Employee may creclitors of the Employer, end no Participant or bec~me a Pa rticipani by ante ring into a Jcinder Beneticiary shalthave any vesled interesl or secured or preferrea positio~ wire respect to such property or Agreement prior to the beginning of the ca{procter month In whfchthe Joinder ~,greeme~nt is to become have any claim agains~ the Empk~yer except e.s a effective to defer compensation not yel earner, genstar creditor. Section 4.02 Amendment of doinder Agreement: A Section 6.02 Crediting ct Accounts: The Participant's Pa~icipant may amend an executed Joinder Account shall reflect tl~e amount and value of the Agreement to change the amount of compensation investments cr other property obtained by the Em- not yet earned which is to be defferred (including the ployer through the inYestment of the Participant's reduction of such future deferrals lo zero) or to Deferred Compensation. It is anticipaleci that the change his investment preference (subiect to such Empioyer's investments with respect to a Psrticl- restrictions as may resultfrom[he nature or ~ermsof pant will conform to the investment pre~erence any investment made Dy the Employer), Such specified in the Participant's Joinaer Agreement, amer~dme~t Shall become effective as of the begin- but nothing herein shall be construed to require the ning of the calendar month ¢cmmenclng after t~e Employer to make any pa~icular investment of a date the ~mendment is executed. A Participant may Participam'a Deferred Compensation, Each Partici- at a~y ~[me amend ~{s Joinde r Agreement to change pant shall receive periodic reports, not less frequently t~e designated Beneficiary, and s,jch amendment than annually, showing the then-current value of his shall become effective immediately. Account. ARTICLE V, LIMITATION~ ON DEFERRAL~ Section 5,03 TrartBfer~; fa) Incoming Translate: A !ransfer may be accepted from an eligible deferred Section S,0! Normal Limitation: Except as provided in compensation plan maintaine~ byanother employer section 5,02, the maximum amount of DelerreO and cre(tite(~ to a Pa~cipant'$ Account under the Compensation for any Participant for any taxable Plan if fi) the Participant nas separated from service year shal! not exceecl the I~sser of $7,500.00 or 33- with that employe~ and become an Employee ol the 173 percent of the Participant's Includible Compen- Employer. and (ii) the other employer's p!an pro- sation for the taxable year. This limitation will ordi- rides that such transfer will be made, The Employer narily be equivalent to the lesser of $7,500.00 or 25 may require suc~ documentation f~m the prede- percent of the Participants Normal Compensation. cessor p~an as it deems necessary fo effectuate the transfer, to confirm that such plan is aP eligible following paymert! options, provided that such deferre~ compensation p!&n within the moa;king o! t!on is ccnsister, t w;th the limitations set forth in Section 457 Of the Code, and to assure the t transfe rs Section 7.03: are provided for under such plan. The Employer may refuse to accept a transfer in the form of asse!s (a) Equ~l momhl'/,; uarterlyo semi-annual or ~tn~ual othe." than cash, unless the Employer anti the paymentsinanar~oun[chose~lbytt'lePartlcipant, Administrator agree to hold such otnerassets under conti~.utng until his Account is exhausted; the Pie, n, A~¥ such transferred amount snnil not 0e (b) One ,~mp-sum payme,~t; treated as a deferral subject to the iimitat~(,,ns of Artic'Ie V, except that, for purposes of applying the (c) Approximately equal montl31y, quarteriy, ~erni- limitations of Sections 5.(}1 and 5.02, an amount annual or annual p~yrnents calculated to deferred during any taxable year under the plan continue for a pedod certain cho.~en by the _ from wtqich the transfer is accepted shall be treated Pad[cipant, as il~ it has been deferred under th;s Pla, n dur ng such ta,xableyearandcompensationpaidDythetrac, sferor {d) Annual Payments equal to the mir~imum employer shall betreated as if it had been paid bythe distributions required under Section 401 (a)(9} (31 Employer, the Code over the ~fe expecta:cy of the Participant or over the life expectar'cies bt the (b) Outgoing Transfers: An amount may be trans. Participant and his/her Beneficiary. tarred to an eligible deferred compensation pran (e) Payments equalto payments made by[he issuer maintained by another employer, and charged to a of a retirement annuity policy acouired by the Participant's Account under this Plan, it (i.~ t~,e Par- · tlc;pant nas separated from service with tl~e Em- Employer. ~Ioyer and become an employee of the other em- (f) Any other payment opt!on electea by the ploye~, ([i) the other employer's plan provides that Participant and agreed to by the Employer anti such transfer will be accepted, and (iii) the Partioi- Adminis~.rator, ~;rOvJded that such option must pant and the employers have signed such agree- pro,.,iclet(~r substantiallyno~i;~crea$ing payments mentsasarenecessarytoassurett~attheEmpioyer's for any perloa after the latest benetit liability to pay benefits to the Participant has been commencement (:eta under Section 7.01. discharged encl assumed by the other employer. The Employer may require such documenta',Jon A Particil~ant's or Beneficia?y's election of a from the other plan as ~t deems necessary to after- payment (3pt~on must be made at ~east 30 says tuate the transfer, to c, onfirm that such plan is an before the payment of benefits Is to commence. eligible deferred conlpensation pian within the If a Padicipant or Benet'~ciary fails to make a meaning of section 457 of the Code, and to assure t!mely electlo,~ of a payment option, benefits that transfers sro provided for under such plan, shall be paid mor~thl¥ undue optioc~ ~'c) above for Sucl~ transfers shall be made only under s~Ch a perioc~ of five years. circumstances as are permitted under section 457 of the Code and the regulations the,-eunder. Section 7.03 Limitation on Options: Nc payment option Section 6.(14 Employer Liability: In no event shall the may be selected by a Participant or Beneficiary Employer's liabilily to pay benefits to a Participant ur, der Sec[ions 7.02, 7.04. or 7.05 u~less it satisfies unde~ Article VI exceed the value c~f the amounts the requirements of Sections 401 (a)(~) ~nd 457(d)(2) credited to the Participant's Accounl; t~e Employer of the Code, inc~udh'3,g that payments commencing shal; not be lial31e for losses arising 1rom (3eprecie- before ~l~e ~teath ~1: the Part!cil3ant shall satisfy the lion or shr[nka§e in the value ct any i~vestments i,~cident~Ideath ~3enefitsmquirementunaerSection acquired uqdet'.his Plan. 4§7(d)(~)~,B)(i)(I). Unless otherwise elected by tl~e Participant, ail determinations under Section 401 (a)(9) shall be made without recalculation of life ARTICLE VII, BENEFITS expectancies. Section 7.01 Retirement Benefits and Election on Section 7.04 Poet-retirement Death Benefits; (~) Should Separation from Se~tce: Except as otherwise tt~eParticip~ntclie~fter ne/~hel3~sbe~ur~to~eceive provi0ecl in trois Article VJJ, the distri0iJlion of a be~elit$ under a payment option, the remaining Participant's Account Sh~ll commence as of April 1 payments, if any, uno, er fha payment option si3all be of tl~e calenda~ year after the Plan Year of the payable to the Participant's I~enefloie, ry cornmenc- PartiCipant'S Retirement, and t~edistribution ofsuc~ lng within the 30-day perioc~ commencing with the Retirement benefits shall be made in accardance 61st any after ~he Participant'e death, ur,less the with one of the payment options described in Sec- Beneficiary e!ec~s payment under a different pay- lion 7.02. Notwithstanding the foregoing, the Partlci- ment option ~hat [.~ a¥~i!able under Section 7.02 pant may irrevocably elect within 60 days following within60 days of the Participant's death. Any0iEerent Separa~ior~ from Service to have the distribution cf paymen~ oplton electeci by a Beneficiary uncler this benefits commence on a tixed or Ceterminable Cate section must ~)rovJde for payments at a rate lhat is at ot~at than that described fn the pre,~eding se'~tence least as rap,d as u~der ~e payment optio~ that was which is al leas160 days after the date such election ai)pficabte to the Partici[3ar~t. In no event shall the is delivered ;n writing to t~e Employer and for'warded Employer orAdminislrator i:)e liable to the Beneficiary tO the Administrator, but not ~ater ~ban Al~ri[ 1 of tl~e for the amount of any 1:~3¥ment rnac~e in the name of year following the year of the Pa~icipant's Retire- the Participant before ',he Administrator receives meat orattalnmentot age 70-1/2. whict3everislater, proc! of death cl the Parlicil3ant. Section 7.02 PaymentOptions:As provided in Sectio,~s (D) If the designaled Beneficiary does no~ continue 7.01, 7.04, and 7.05, a ParticJoant or Beneficiary to live ~or the remaining period of payments under may elect to have the value of the Pa rticipant's the payment option, then the cornmuted va!ue of any Account 0istrib~ted in accordance wire one cf the remaining payments ur~lerthe p~ymen! option shall be paid in a lump sum to the eslate of the Benefi- ruination as to whether such an unloreseeable ciary. In tl~e oven! that the Participant's eslate is the emergo,'~cy exi$le Shall be basso on ~he merits Beneficiary, the commuted value of any remaining each individual cass, payments under the payment option shelf be paid to the estate in a lump sum, Section 7.07 Transit{oriel Rule for Pre-1989 Senefit Elections: In :Re event tP~at, prior to January 1 1989, Section 7,0$ Pre-retirement Death Benefits: (a) Should a Participant or Beneficiary has commsnced re- the Participant die before he/she has begun to ceivlng base,ils under a paymenf option o`' has receive the benefits provided by Section 7 01, the irrevocably elecled a payment option or benefit value of the Participant's Account shall be payable commencement date, then that payment o!otlon or tO the Beneticiary commencing with!n Ihe 30-day election shelf remain iq effect notwithsfand',ng any periocl commencing on the 91st clay a/tot the cther prowsior~ of this Plan. Participant's death, unless the Beneficiary irrevocably e/eC:S a d;fferent fixed or determir~able benefit corr~- mencement date within 90 days of the PartiCipant's ARTICLE VIII'. NON-ASSIGNABILITY death, Such benefit commencement date shall be Section 8.01 In General: Excep[ as provided in Section not later than the laterof (ii December 31 of {he year 8.02, no Particit:ant or Beneficiary shall have any following the ye;ar of the Participant's death, or (ii) i~' right to commute, sell, assign, pledge, transfer or the Beneficiaryis Ihs Participator's spouse, Decemt3er otherwise convey or encumber the right to receive 31 o~ the year in which the Part~c;pa. nl would have anypayments hereuncler, whion paymentsand rights attained age 70-1/2. are expressly declared to be non-assignable and (b) Unless a Beneliciary elects a different payment no~-transferat31e. optlo~ prior to the benefit commencement date, Section 8.02 Domestic Relations Orders: (a) Allow- cJeatn beneirits under this Section shall be paid in anco of Transfers: To the extent re0uired under a appro×imateJy equal annual installments over ~ive final judgment, decree, or or, er (including a. pprovsl years, or over such shorter period aa may De neces, of a pro~erty set, tie rnent agreement) made pursuant s~ry to a. ssum that the amount of any annual ir~stall- to a state domestic relations law, any portion of a meat is not less than $3,500. A Beneficiary ahat113e Parlicipant's Account may be paid or set aside for treated as if he/she were a Participant for purposes payment to a spouse, tormer spouse, or child of the of determir, ing the payment ~ptions available under Partlcipant. Where necessary tO carry out the terms Section 7.02, provided, however, thatthe paynqen: of such a~ order, a separate Account shall be option chosen by the Beneficiary must provide for established with respect to the spouse, former paymsntstothe Beneficiary overaperiod no ~onger spouse, or c~ild who alkali be entitled to make l~an the life expectancy ct the Eienef~ciary, and investment selections with respect thereto in the provided thai such period may not exceed fifteen sa, me mane, er as the Participant; any arnounl so set (1:5) years if the Beneficiary is not t~e Participant's aside for a spouse, former spouse, or child shall be spouse, paid out in a lump sum at. the earliest date that (c) ~n the event t~at the Beneficiary dies before the benefits may be paid to the Participant, unless tho payme~,t of death bene~ts has commenced or been order directs a different time or form of payment. completed, the remaining value of Ihs Participant's Nothing in thls Section shall be construed to autho- ACCOUnt shatl be paid to the estate of the Beneficiary rize any amount to be distributes under the Plan at in a ~ump sum. In the event that the Participants a time cr in a form that i$ not permitted under Section estate is the Beneficiary, payment shall be made to 457 of :he Cocie, Any payment made to a person the estate in a lump sum. other than 1he Participant pursuant to this Section shall be reduced by required income tax withhold- Section 7.0e Unforeseeable Emergencies: (a) In the lng; the fact that payment is made to a carson otb. er event an u~fo~eseeable emergency occurs, ~ Par- than tr~e Participant may not prevent such payment ticipant may apply to the Employer to receive that from Doing includible in the gross income of the part of the value of his Account that is reasonably Part;cipant to,- withholding and income tax reporting needed to satisfy the emergency need. I1' such an purposes. application is approved by the Employer, the Partici- pentshallbepaidonlysuchamourttastheErnployer (b) Refe-~$e from Liabitity to P~rticipant; The deems necessary to meetthe emergency need, but Employer's liability to pay benefits to a Participant payment Shall no: be made to the extent that the sh~ll be reduced to the extent that ~,mo~Jnts have financial hardship may be refieved throu§h cessa- been paid or set aside for payment to a. spouse, tics cf deferral under tlqe PlAn, insurance or other I'orme r spouse, or child pursuant to paragraph (a) of reimbursement, or liquidation of other assets to the this Section. No such tran.~fer shall be effectuated extentsuch liquidation would not itself cause severe unless the Employer or AdminLstrator has been financial hardship, provided with satisfactory eviclence that the Em- I~[oyer ancl the Administrator are released from any (b) An unforeseeable emergency shall be deemect turther claim by the Participant with respect to such tO involve only circumstances of severe financial amounts. The ~articipant sheJI be deemed to have hardship to the Participant resulting from a suctden released the Employer and t~e Admir, istrator from unexpected illness, accident, or c~isability of the any ciaim wits respect to such amounts, in any case Participant or of a dependent (as ciefined in Seclion in whicl~ ti) the Employer or Administrator has 13eon 15~(a) of the Code) of the P~rticipant, loss of the served wi~ legal process or otherwise joined in a Participant's prop erbj due to casualty, or other simi- proceeding relating to such transfer, (ii) the Part[cF let and extraordinary unforeseeabre circumstances pant has been notified o~ the pendency of such arising es a result pi events beyond thecontrot of the proceeding in t.~e manner prescribed by t~e Jaw of Participant. The need to send a Participant's child to the juriscliction in which the proceeding ia pending college or to purchase a new home shall not be for.se~,~'ic~e of process in such action or by mail from considered unforeseeable emergencies. Thede~er- the £mp~oyer or Administrator lo the ~artJcJpant's last known mailing address, and (iii.') the Pertici- ARTICLE X. AMENDMENT OR TERMINATION OF PLAN pant fai~s to obtain an crder of the court m the proceeding re~;eving the Employer or Administra- The Employer may at any dme amend this Plan provided tot from the obligation to comply with the judg- that it transmits s~cl~ smen,'Jment in writingto the Administra, meat, decree, or order, for at leas~, 30 days prior tc the effective (late of thte amend- ment. The consent of the Administrator sh ~-;I ~ot be required (c) Parlicipatton in Legal Proceedings; The Em- in order for sur..J3 a, mendment to become effective, but the ployer and Administrator shall not be obligated to Administrator sba I be under no ob ga~ on to continue acting defend against or se/aside a~y judgment, decree, as Administrator hereunder if it disapproves of such amend- cr order described in paragraph {a} or any legal meat. The Employer may at Any t~me terminate this Plan. order relating tO the garnishment of a Participant's The Administrator may st any time propose an amend. benefits, unless the full expense ot such legal action merit to the Plan by an instrument i~1 writing transmitted lo the is borne by the Participant. In the ever~t that the Employer at least 30 c~ays before the effective date of the Pacticipanrsaction torinaction)nonethelesscause~ amendment. Such amendment shall become effective un. the EmptoyerorAdministratortoincursuchexpense, !ess, wilhin such 30-day period, the Employer notifies the the amount of the expense may be charged against Administrato~ in writing tl~a[ it d!sappro,,,'es such amendment, the Participant's Account and Ihereby reduce lhe in which case such amendment shall not become effective. Employer's 0b!igation to pay benefits to the Psrttci- In [he event ol such disapproval, the Administrator shall be pant. In the course of any proceeding relating to under no obligation to continue acting as Administrator Qivorce, sepacation, or child s~Jpport, the Employer hereunder, if this Plan document constitutes an amendment and Administrator shall be authorized to disclose and restatement of the Plan es previoLtsly adopted by the inlorm=~tion rearing to the PartlciDant's Account to Employer, the amendments ~ontained herein shall become the Participant's spouse, former spouse, or child effective on January 1,1989, and tine terms el the preceding (inclucling trte legal representatives of the Spouse, Plan document shall remain in effect ~hrough December 31. former spouse, or ch, l~dl, or to ~ court, 1988, ARTICLE iX. RELATIONSHIP TO OTHER PLANS AND Excepl as may De required to maintain the ststus of Ihe Plan a s an eligible delerred compensation plan under Section EMPLOYMENT AGREEMENTS 457 of the Code or to comply with other a~pticable laws, no This plan serves in addilion to any other retirement, amendment or termination ct the Plan shatl divest any pension, or 0enefi! plan or system presentiy in existence or P~rticipant 0l any rights wis respect to compensation cle- hereinatter established for the benelit of the Employer's lerred before the (:late of the amendment or termination. employees, and participation hereunder shall not affect benefits receivable under any such plan or system. Nothing ARTICLE XL APPLICABLE LAW contained in lt~is ~=lan shall be deemed to constitute an This Plan snail be construed under the laws of t~e state employment contract of agreement 13et'ween any Partici- wrmre the Empioyer is rccated and is estat~Iished with the panl ~nd the Employer or to give any Part;cipant the right intent that it meet [he recu~remenls o1' an "eligible deferred to be retained in the employ of .*.he Employer. Nor shalt Anything herein i3e construed to modify the ~erms of ~ny comc~ensation plan~ under Section 457 of the Code, as eml=loyment contract er agreement between a Participant amended. The ,orovisicns of this PIan shall be interpreted and the Employer. wherever possible in Cdr, fortuity w~t.b ~he requirements o[that se etlon, ARTICLE Xlh Any notice to a oarty of this plan ~ocument s~all be given st the last address provided in writing from one 9arty to another party. Any notice such mailed sh~tll be determined to hay9 been received by such party.