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HomeMy WebLinkAbout16-98 RESOLUTION NO. 16-98 A RESOLUTION of the City Council of the City of Port Angeles, Washington, relating to a Deferred Compensation plan under IRS regulations 401(a) and 457. WHEREAS, the City has employees rendering valuable services; and WHEREAS, the establishment of a deferred compensation plan benefits employees by providing funds for retirement and funds for their beneficiaries in the event of death; and WHEREAS, as the Internal Revenue Service provides regulations to establish deferred compensation plans for public employees under Sections 457 and 401(a); NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Angeles that the City of Port Angeles hereby establishes a deferred compensation plan (the Plan) in the form of the Aetna Life Insurance and Annuity and Company pursuant to the specific provisions of the Variable Annuity Contract and the City's Deferred Compensation Plan Document (copy attached hereto), which Plan shall be maintained for the exclusive benefit of eligible employees and their beneficiaries; and BE IT FURTHER RESOLVED that the City hereby executes the Aetna Variable Annuity Contract establishing a 457 and a 401 (a) Deferred Compensation Plan; and BE IT FuRTHER RESOLVED that the City hereby agrees to serve as trustee under the Plan Document; and BE IT FURTHER RESOLVED that the City's Human Resources Manager shall be the coordinator of the Plan; shall receive necessary reports, notices, etc., from Aetna Deferred Insurance Company; and 'II BE IT FURTHER RESOLVED that the City hereby authorizes Robert Coons, Human Resources Manager, to execute all necessary agreements with the Aetna Life Insurance and Annuity Company incidental to the administration of the Plan.. P AS SED by the City Council of the City of Port Angeles, Washington, this 4th day of August, 1998. ATTEST: t~ f3. \~ .~ Gary ~~ un,~or b~~ ,Lr~ Becky 1. U ,. y Cler APPROVED AS TO FORM: ~~ 08189 DEFERRED COMPENSATION PLAN DOCUMENT ARTICLE I. INTRODUCTION The Employer he~b'l establishes the Employer s Deferred Compens8tJOn Plan, hereinafter referre,1to as the .Plan:' The Plan consists of t":e provis!orls set fonn in this document. . The orimary pt.Irpose of this Plan is to provide retirement Income and otlier deferred benefits to the Employees cf the Employer In accordance with the provisions 01 Section 457 of the Intemal Revef,ue Code of 1986. as amended (the .Code"). This Plan shall be an agreement solely between the Employer and participating Employees. ARTICLE II. DEFINITIONS Sect/on 2.01 Account: The bookkeeoing aCCOunt maintained for each Participant reflecting the cu- mulative amount of the Participant's Deferred Com. pensation, Including any income, gains. loSSeS, or increases or decreases in market value attributable to the Emproy.;r's investment of Ihe Participant's Deferrr.d Compensatior.. and further reflecting any distributions to the Particioant or the Participan1's Beneficiary end any lees or Expenses charged against suen Participant's Deferred Compensation. Section 2.02 Administrator: The person or persons named to carry out certain nondisc~tionary ad- minisl rative functions under1he Plan, as hereinafter described. The Employer may remove any person as Administrator upon 60 d.dys' advance notice in writing to such person, In which case the Employer shall nr-me another person or persons to act as Administrator. The Administrator may resign upon 60 days' advanee notice in writing to the Employer. ir"l which case the Emplo~( 6I1all name another person or persons to act as Administrator. Section 2.03 BeneficIary: The person or persons desig- nated by the Participant in his Joinder Agreement who Shill receive any beneNs payable hereunder in the event ot the Par1icipant's death. In tt'le event that the Participant names two or mOle Beneficiaries, each Beneficiary shall be enl'tled to equal shares of the benefits payable at the Participant's deat.,"" un- 1&$$ otherwise provided in the Participant's Joinder Agreement. If no beneficiary i$ designated in the Joinder Agreement, If the Oesignated Beneficiary predeceases the Participant. or if the designated Beneficiary does not survive the Participant for a period of fifteen (15) days. then the estate of the Participant shall be the Beneficiary. Section 2.04 Deferred Compensation: The amount of Normal Compensation otherwise payable to the Participant which the Participant ar.d the Employer mutually agree to defer nereunder, any amount credited to a Participant's Account by reason of a transfer under section 6.03. or any other amount whIch the Employer agrees to creditto a Participant's Account. SectIon 2.05 Employ..: An~' individual who provides $9rvicesfor the Employer, whether as an employee of tnl; Emptoyer or as an independent conlractor. and who has been d~sigr:ated by Ih9 Employ~r as eligible to participate in the Plan. Section 2.06 Includible Compensation: The amount of an Employee's compensation from the Empfoyerfor a taxable Velar lhal is attributable to services per- formea tor the Employer and that is includible in tile Employee's gross income for the taxable year for federal income talC purposes; ,such term does not include any amount excludable from gross income under this Plan or any otMr plan described in Section 4S7(b) of the Code or any other amount excludable from gross income fer feceral income tax purposes. Includible Compensation snail be deter- mined without regard to any community proPliIrty laws. Section 2.07 Joinder Agreement: An agreement en. tered into between an Employee and the Employer, including any amendments or modifications thereof. Such agreement shall tix the amount o~ Oeferred Compensation, specify a preference among the Investmentaltemauves designated by tile Employer. designate the employee's 8~l1e1iciary or Beneficia. ries. atld incorporate the tsrrr:s, conaitlons, and provisions o' tf:e Plan by reference. Section 2.08 Normal Compensation: The amount of compensation which would be payable 10 a Partici- pant by the employer for e taKable year if no Joinder Agreement were in effect to defer compensation underthis Plan. Settion 2.09 Normal Retirement Age: Age 70.1/2. un- less the Participant has el9cted an alternate Normal Retirement Age by written instrument delivered to the Aaministrator crior to Separation from Service. A Participai'lt'6 Normal Retirement Age determines the pe:ioc during which a Participant may Lt.i1i~e the catch-up limita.tion of Section 5.02 hereunder. Once a Participant has to any extent utilized the catch-up limitation of Section 5.02. his/her Normal Retire- ment age may not be changed. A Participant's a:terrate Normal Reliremem Age may not oe earller than the earliest date that tho Participant will become eligible to rei ire and receive unreduced retire ment benefits cnclerthe Employer's basic retirement plan covering the Participant and may not be later tJ'I8n 1he date the Participant will attain age 70-1/2. If a Participant continues employ- ment after attaining age 70-1/2, not navlng previ. ously elected en alternate Normal Retirement Age. the PartiCipant's Mernale Normal Retirement Age shall not belaterthaIl the mandatory retiremsnt age, if any. estab!lshed by the Employer, Clr the age at which the Participant actuatllo' separates from ser- vice il the Employer has no mandat:;lry retirement age. If ~he Participant will not become eligible to receive benefit~ under a basic retirement plan maintained by the Employgr, the Participant's alter- nate Nonnel Retire ment Age may not be eartierthan age 55 and may not be laltar than age 70-112. Section 2,1 0 Participant: Any Employeewho has Joined the Plan pursuant to the requirem~nls of Article IV. Section 2.11 Pion V..r: Tt-:e calendar year. S.otlon 2.12 Retirement: The first date upon which tlOth of the icllowing shall ha....e occurred with reSl'4!ct to a panlcipant: SsparatIO,'l trom Service and attain- menl Of age 65. Se(1Uon 2.13 Separation from Service: Se...erance of the Participant's employment with the Employer wh~h constitutes a .seoaratlon f(om service" withi:'l the I'l"eanlngot Section 402(e)(4)(A}(iii} ofthe Code. In general. a Participant shall ba deemed to have severed his employment with th" Employer tor pur- poses of this Plsl'l when, in accordance with the established practices of the Employer, the emj:lloy- menl relationShip is considerea to have actuall)i terminated, In the case of a P~rticipant who IS aI1 independentcontractorofthe Employer. Separation from Service Shall be deemed to Mve occurreCl when the Participant's contract w"Jder which ser- vices are performed has compt4iltely expired and terminated, there is no foreseeable possibirity thai the Employer will renew the contraot or ente r into a now contract forthe Participant's selVices, and it ilS not anticipated that the Particioant will become an Employee ot the Employer. ARTICLE III. ADMINISTRA TlON Section 3.01 Dulles of Employer: The Employer shall h avelhe authority to make all dilScretionary decisions aHectinQ the rights or benefits of Participants which may be reQuired in the administration of this Plan. Section 3.02 Dutlea of Administrator: The Adminis- trator, as agent for the Employer, shall perfcrm nondiscretIonary aClministrative functions In eon- l'Ieetion with the Plan. inclUding the maintenance of ?i!1rt~ipant&' Accounls. lhe provision of periodic repor1s of the status of each Account. and the disbursement of benefits on behalf of the Employer In aCCOroance with the provisions of this Plan. ARTICLE IV. PARTICIPATION IN THE PLAN Section 4.01 Initial Participation: An Employee may become a Participant cy enlering into a Joinder Agreement prior to the beginning of the calendar month In whIch the Joinder Agreement is to become effective to defer comp4!nsation not yel earned_ Section 4.02 Amendment of Joinder Agreement: A Partieipant may amend an executed Joinder Agreemenllo c:hangf$ the emount of compensation not yet earned whiCh is to be deferred (inciuding thlil reduction of such future deferrals to ~9ro) or to change tlls investment preference ($ubject to $I.lch restnctions as may result from the nature or terms of any investment made oy the Employer). Stich amendment shall become effective 8S of the begin- ning of the calendar month cemmeneing after itle date the amendment is executed- A Participant may at anytime amend his Joinder Agreementto change the designated Beneficiary, and such amendment shalt become effective ilT.medlately, ARTIClE V, LIMITATIONS ON DEFERRALS Section 5.01 Norm.l Limitation: Except as provided in section $.02, the maximum amount of Deferred Compel\Sation tor any Participant for any taxable year shall not el(ee~ thQ '6sser at $7,500.00 or 33- 113 ):)ereent ot the Participanrs Includible Compen- sation for the taxable year. This limitation will ordi. na rily be equivalent to the lesser of $7,500.00 or 25 percent 01 ttlll Participanl's Normsl Compensation. Section 5.02 Catch-Up Limitation: For e.Ch of the last ;hree (3) ta~l!bie y.ears of a Perticipant ending be- ,or. ,hiS attalnmen. of Normal Retirement Age, tne maximum amount of Deferred Compensa!ion shall be the lesser of: (1) S 1 S .0000 r (2) the Sum of (i> the Normal L!mitaticn for the taxable year, and (ii) the Normal Llmltallon for each prior taxable Y9ar of the Partjcipant oommencin g atter 1 978 lelS$ the amount of the Participant's 09ferred Compensation for such prior taxable years, A f;Mr taxable year shall be taken into account uncer the preceding sentence only if (i) the Pan::clpa'1t was eligible to participate in the Plan for such year (or in any other eligible deferred compensation plan establlsh~d under Section 457 of the Code which is properly taken lOto account purs1.lant to regulations under section 457), and (ii} compensatron (if any) deferred under the Plan (or such other plan) was subject to the deferral limitations set forth 1:'1 Section 5.01. Section 5.03 Other Plans: The amount excludable from a P..rticipant'$ gross income under this Plan Or any other eligibl; deferred comoensation plan under section 4!:17 of the Code shall not exceed $7.500.00 (or Such greater a 'nount allowed under Section 5.02 of the Plan). less any amount 9)(oluded from gross income unoer section 403(b), 402(a)(8), or 402 (h)(l)(B) 01 tt'.e COCle. or any amdUrll with re$pectto which a oeduction i$ allowable by r&ason of a contribution to an organization described in section 501(c)(16) of the Code. ARTICL.E Vl.lNVESiMENTS AND ACCOUNT VALUes section 6.01 Investment of Deferred CompensatIon: All investments of Participant's Deferred Compen- sation made by the Emoloyer. incluQing all property and rights purchaSed with such amounts and all income attributablli thereto. shall be the sole prop- erty Of the Employer and shall not be held in trust for Participants or as collateral sQClJrity for the fulfillment of the Employer'S Obligations under the Plan. Such property shall be subject to the claims of general creditors of the Employer, ar.d no Pal1ic:ipant or Beneficiary shall have any vested IntltrelSt or secured or preferreo ~osition with respect to such property or have any c:1:!llm against the Employer except as a genaraf ereditor. Section 6.02 Crediting of Accounts: The Participant's Account shall reflect the amooJnt and value of the investments or other property Obtained by the Em- ployer through the investment of the Panioipanrs Deferred Compensation. It is anticipated that the Emp1oyftr'S investmenls with respect to a Partici- pant will conform to the investment preference speCified in the Partic:panl's Joinder Agreement, but nothing herein shall be construed to require the Employer to make Bny particular ,nvestment of a Particip8~t'S Deferred Compensation. Each Partici- pant $hall receiv~~nodic reports, not less frequently than annually, sr.owir.g the then-current value of his Account. Section 6.03 Transfers: is) Incoming Trali$fel'$: A transfer may be accepted from an eligible deferred compensation plan maintained by anotheremplo~'er and orediteO to a Participant's Account under the Plan it (i) the Participant nas separated from service with that employer and become an Employee of the Employer. and (u) the other employer's p!an pro- vides 1M at such transfer will be made. The Employer may reqUire such documentation from the prede- cessor plan as it deems necessary to effeCluate the transfer, to confirm that $uch plsn is aM eligIble defe:rea compGnsation plan within the meatling of Section 457 Of the COde. andto assureth,? ttransfers are provided for under such plan. The Employer may refuse to accept a transfer jn tt1a form of assets oth~~ than cash, unless the Employer an.j the Administrator agree to hold such ottler usets unoer the pran. Any such transferred amount snall not be treated as a deferral subject to the jimitations of ArtiCle V, except that, rOr purposes of applying the limitations of Sections 5.01 and !5.02, an amount dererred during any taxable year under the plan from WhiCh the transfer is accepted shall be tre8t~ 8S if it has t:)Qen deferred undelth;.g Plan during sucn taxable year and compensation paid by the trllr.sferor employer shall bo treated as ifit had been paid by the Employer. (b) OutgoIng Trar.sfers: MamOllnt may be !Tans. ferred to an eiigible deferred compensation pran maintained by another employer, and charged [0 a Partielpant's Aocoul'lt under this Plan. if (i) the Par- ticipant nas separated from service with the Em- .oloyer and become an employee of the other em- plover, (Ii) the ether employers plan provides that such transfer will be accepted, and (Hi) th& Partici- pant and the emp:oyers have signed such agree- ments as areneCe$sary to as so re that the EmplOyer's liability to pay benefits to the PartIcipant has been discharged ana assumed by the other employer. The Employer may require sllch documenra:Jon from the other plan as it deems necessary to effec- tuate the transfer. to confirm that such plan IS an eligible deferred compensation pian within the meaning 01 section 457 of tile Code, and to ass~re that transfers are provjded for under such plan. Such tl'ansfers shall be made only under 6veh circumstances a$ are permitted under section 451 of the Code and the regulations lhe~eunder. Section 6.04 Employer LIability: In no event shaJlthe Employer'S liability to pay benefits to a Participant under Articl~ VI ixceed the value of the amounts credited to the Participant's Account; the Employer snair not be liabre for losses arising from aeprecis. Fon or shrinksge in the value of any ir'\vestments acquired urtder !hiS Plan. ARTICLE VII. BENEFITS Section 7.01 Retirement Benefits and Election on Separation from Service: Except as ottlerwise provided in this Article VII, the distribution of a Participam's Account shall commence 8S of April 1 of the c81enoar year after the Plan Year of the Participant's Retirement, and the distribution 01 such Retirement benefrts shall be made in accordance with one of the payment options described In Sec. tion 7.02. N otwit hSfanding the foregoing, the Pert id. pant may irrevocably elect within 60 days following Separation from Service 10 have the distribution cf benefits commence On a fixed or determinable date otMr than that described in the preoeding se~tence which i:s at least 60 days after the date such election is delivered in writing to the Employer and for.... arded to the Administrator, but not lallir iMn April 1 of the year fofJowing the year of the Participanfs Retire- ment or attainment 01 age 70.1/2. whichever is later. SKtlon 7.02 Payment Options: As provided in Sections 7.01, 7.04, and 7.05. a PartieJeant or Beneficiary may elect to have the value of Ihe Participant's Account distriboted in accordar.ce with one ot the f~lowing payment op~lons, prOVided that such op- t:on IS ccnSlster.t WIt" the limitations set torth in Section 7.03: (a) E qual monthly. :J uarterly. semi.annual or annual payment, in an amOUnt chosen by the PartiCipant. COoli~\Jtng until his Account ,5 exhausted: (b) One lump-surr. payme'lt; (e) ApprOXimately equal monthly, quarterly, $emi- annual or annual paymel'Ots calcuJa1ec;l to continue for a period certain :::hosen by the PartiCipant (d) Annual Payments equal to the minimum dilSttlbutions required un(jer Section 401 (a)(9) of I"e Code over the Pfe expectancy of the Participant or over the life expectancies of the Participant and hislher Beneficiary. (e) Paym$ots equalto payments made ty the iSsuer of a retirerr..!nt annuity pOlicy acquired by the Employer. (f) Any other payment option elected by Ihe Participant and agreli<l to by me Employer and Administrator, provided that such option must provide for substamiallyononincreasing payments for any perloa after the latest benefit commencement as:e under Section 7.01. A PartiCipant's Or Beneficiary's Elle~ion ot a payment option must be made at ieast 30 days before the paymont of ber.efits Is to commence. If a Participant or Benerlciary fail$ to make a timely electic'l of a payment option. benefits shall be paid month~i under optior. (c) above for a periOd of five years. Section 7.03 Limitation on Options: No payment option may be selected by a Particioan! or BenQticiary under Sections 7.02,7.04. or 7.05 ur:Je$$ it satisfies the requirements ot Sections 40 1 (a)(9) and 457{d)(2) of the Code. inCludi:'lg that payments commencing before tM death ot tr,e Pert'cipant shall satISfy the it1cident3: death tlenefits n;quirement unoer Section 457(d)(2)(B)(i)(I). Unless otherwise elected by lt1e PartiCipant. a,1 detsrminations under Section 401 (a)(9) shall be mada without :eealculation of life expectancie4. Section 7.04 Po.t.retirement Death Benefits: (a) Should tne Participant die arter nel$he nas begun io receive benefits llilder a payment option, the remaining payments, if any, under the payment option shall be payable to the Participant's BenefK;ialy commenc- ing within lhe 30-day period comme~olng with the 61st Clay atter the P3rticipant"s deatn, ur,less the Beneficiary elects payment under a different pay. ment option that is available under Section 7.02 withln60days of the Participant's death. AnYc:l!ffer~nr payment option electea by a Beneficiary under this section must J)rovide fOf payments at a rate that is at least as rapid as under ~e payment option that was app~icabre to the Participant. In no event shall the Employer or Adminislrator oe liable to the Beneficiary for the amount of any payment made in the name of the Participanr berore the AdmlnlSlratcr re!:elves proof of death ot the Participant. (0) If th6 deSignated Beneficiary does not continue to live ror the remaining period of paymenls under the payment option. then the commuted va!ue of any remaining payments t,;nderthe payment option shall ...---......--. .-.-.......-.. .-.. ... .--- - -.. bGl paid In a lump sum to the eatale of the Bene/i. ciary. In 11'1" flv"nt that thea Participant's eslate is lhe Benaficiary, the commute<l value of any remaining payments under the payment option shalt be paiC110 the eSlale in a lump sum. Section 7,05 Pre-retlrement Death Benefits: (a) Should the Participant die before he/she has begun to receive the benefits provided by Section 701, tne value of the Participant's Account shall be payable to the Beneficiary commencing wilt1:n lhe 3D-day period ccmmencing on the 91st day after the Particlpanrs death. Unless the BeneficIary irrevocably ~Iects a d,fferent fixed or determinable benefit COrr,- mencement date within 90 days of the PartiCipant's death. Such benefit comm6ncement date shall be not later than the later of (i) December 31 of the year following the year of the Participant's death, or (ii) if the Benefici ary is IIle Participant's spouse, December 31 of the yeer in which the Participant would have attained ege 70-112. (b) Unless a Beneficiary elects a different payment cpliOl'l prior to the benefit commenOQment date, aeatn benefits under this Section shall bli! paid in approximately equal annual installments over five years, or over $uch shorter period as may be neces- sary to assure that the amount of any annual install- ment IS not less than 53.500. A Beneficiary shatl be treated as if he/she were a Participant for purposes of determining the payment options available u~ r Section 7.02. provtcled. however, that the payment option chosen by the Beneficiary must provide for payments to the Beneficiary over a p~Hiod nO longer than the life expectancy of Ihe Ben9ficiary, and provided Ihat such period may not exceed fifteen (15) years if the BeneficIary is not t119 Participant's spouse. {c) in the event that the Beneficiary dies before the paymer.1 of death benefits has commenced or been completed, the remaining value of the Participant's Account shall be paid to the estate of the 8er,eficiary in a lump sum. In the event that the Participant's estate is the Beneficiary, payment shall be made to the esta:e in a lump sum. Section 7.06 Unfor..eeoble Emergencies: (a) In the event an unforeseeable emergency occurs. a Per- ticipant may apply to tne Employer to receive that part of the vaiue of his Account that is reasonably needed to satisfy the emergency need. It suen an appllcat;on is apprOVed by the Employer, the Partici- pant shall be paid only such amount as the Employer deems necessary to meet the omergency need. but payment shall not be made to the exlenl that the financial hardship may be relieved through cessa- tion of deferral UnQer the Plan. insurance or other reimbursement. or liquidation of otner assets to tI1e E'lxtenl6uch liquidation wou Id not itself c~use severe finaneial hardship. (b) An unforeseeable emergency shall be deemed to tnvolve only circumstances of severe linancial hardShip to the Participant resulting from a sudden unexpected illness. eecident, or disability of the Participant or of a dependent las defineo in $eetion 152(a) of the Code) of the Pal1lcipant, los5 of the Participant's property due to casualty. or other simi- lar and extraordinary unfore5eeabfe Circumstances arising as a resYlt of events beyond the control of the Participant. The need to send a Participan,'s child to college or to purchase a new home shall not be considered unforeseeable emergencies. The ceter- minatlor. as to whether s~lch an unforese~abie €fmQrg":iCY exjGIS snail b. b.UlQd on the mQrll. of 6ach indiVidual caS6. Section 7.07 Transitional Rule lor Pre-'989 Senefit Elections: In :ne event that. prlorto January 11989, B Participant or BenefiCiary has commenced re- ceiving benefits under a payment option or has irrevocably elected a payment option or benefit commencement date. then that payment option or election shall remain h effect notvlithstand:r'I~ any otMer pro\llsior. of this Plan. ARTICLE VIII. NON-ASSIGNABILITY Section 8.01 In General~ Except as provid;d in See lion 8.02. "0 Participant or Beneficiary shall have any right to commute, sell, assign, pledge. transfer or otherwise rNnvey or encumber the right to receive any paymenlS hereunder, whien paymenlSand rights are exoressly declared to be non. assignable and nor'1rtransferatlle. s.ctlon 8.02 Domestic Relations Orders: (a) Allow- ance of Transfers: To the 9ltlent rGQui,ed uroder a final judgment, decree, or order (including approval of a pro perty settle ment agreement) made pursuant to a state domestic relations law. any portlOCl of a PartiCipant's Account may be paid or S;1 aside for payment to 8 spouse, lormer spouse, or child of the Part:cipant. Where necessary to ca.rry oullhe terms of such an order, a separate AecolJnt shall be established with respect to the spouse. former spouse, or child who shall be entitled to make investment selections with respect thereto In the same manner as the Participant: any amount 90 set aside for a spou.w, former spouse, or child shall be paid out In a lump sum at the earliest date lhat benefits may be paid to the Participant, unl~H the order directs a different time or form of payment. Nothing in tr.is Section shall be construed to autho. rize any amount to be distributed llnder the Plan at a time or in a form that is nor permitted under Section 457 of the Code. Any payment made to a person olnar than the Participant pursuant to this Section shall be r..duced by reqUIred Income tax Withhold. ing: the fact 1hat payment is made to a oerson other than tt1e Participant may not prevent such payment from oeing includible in tM gross Income of the Participant for withholding and incorn& tax reporting purposes. (b) Release from Uability 10 Participant: The Emptoyer's liability to pay benefits to a PartIcipant shall be reduced to the extent that amounts have been paid or set aside for paymenl to 8. spouse. former spouse. or child pursuant to paragraph (8.) of this SectiOn. No such traMier shall be eHect\Jated unless the Employer or Administrator has been provided with Satisfactory evidence lhat the Em- ployer and the Administrator ere released from any fUrlher Claim by the Panicipant With respect to such amounts. The Participant shall be deemed to have released the Employer and the Administrator from any Claim with respect to suCh amounts, in any case in wl"ich (i) the Employer or Administrator has been served with legal process or otherwise joined in a proceeding relating to sueh transfer, (ii) the Partici- pant has been notifiGd of the pendency of such pnx:eeding in the manner prescribed by the Jaw of the jurisdiction in which the proceeding is pending for ~e/'VIce of prooess in such action or by mail from the Employer or Administrator 10 the ~articioant's .,. ... ~ last kr,own mailing address. .and (iii) the Pertici- pant fa;i8 to obtain an order 01 thlil court 1rI the proceeolng relieving the errploy~r or Administra- tor from the obligation to co:nply w;tl1 the Judg- ment. \1ecree, or order. (e) Participation in Legal Proceedings: The Em- ployer and Administrator shall not be cOligated to defend against or set aside ar:y judgment, decree. or order described in paragrapn (a) or any legal order relating to th~ garnishment of a Participant's benefits, unless the full expense of SIJCh legal action is borne by the Participant. In the ever.t that me ParllCipanl's actiOfl (orinaction i nonetheless cause~ the Emp!oyer or Administratorto incur such e~n$li. the amount of the expense may be charQed against the Participant's Account and lhereby reduce the Employer's obligation to pay oene/its to the PartiCi- pant. In the course Of any proceeding relating to divorce, separation, or chiid SlJpport, the Empfoyer and Admlnlstretor shall be aLrthorized to disclose information relating to the Partic;ipant', Account to thQ Participant's Spouse, formar spouse, or child (including the legal representativ9S of the spouse. former spouse. or ef':lIdl, or to a COUr1, ARTICLE IX. RELATIONSHIP TO OTHER PLANS ANO EMPLOYMENT AGREEMENTS This plan serves in addition to ar.y other retiremltnt. pe~sion. or oenefit plan or system presently in 8xi$tence or hereinafter established for the benefit of the Employer'S employees, and par1icipation hereunder shall not affect benefits recei'lable LInder any St!ch plan or system. Nothing contained in this Plan shall be deemed to constitute I!In employment contract or agreement between any Partici- pant and the Employer or 10 give any PartiCipant the right to be retained in Ihe employ of the Employer. Nor shall anything herein be construed to modily thE! terms of any employment contract or agreement between a Participant and t1'.,e Employer. ARTICLE X. AMENOMENT OR TERMINATION OF PLAN The Employer may at a~y (irr.e amend thi3 Plan prOVided that it transmits Sl.ICh amendrr.ent in wnting lothe Admi~istra. tor at least 30 days DnOr te the effective date 01 the amend- ment. The consent of the ,6,dministrator sha:l not be required in order for Such amandme:it to become effective, b"t the Administrator shall be under no obligation to cQniinue aCling as Administrator hereundlilr if it disapproves of such 8mlind. ment. The Employer may at any t.me terminate this piart. The Administrator may at ar.y time propose an amQnd. ment to the Plan by 2!"1 instrument In writing transmitted 10 tne Employer at least 30 O'ays before the effective date of the amendment. Such amendment shall become effective un. 'ess. within such 30-day perIOd, the Employer notifies the Administretor in Writing thaI it disapproves such amenoment, in which case such amendment st1all not become effective. In the evenl of such disapproval, the Administrator shall be under no obligation to continue acting as Adminislrator hereunder, If this Plan do~mQnt constitutes an amendment and rsstatemenl of the Plan as prelliOllsly adopted by the Employer. the amendments contained herein shall become effect!ve on January', , 989. and ti1e lerms of the preceding Plan document shall remain in effect through December 31. 1988. Except as may be reQuireo to mainlain the status of the Pt8n as an eligible del erre d compensation plan undGr Section 457 of the Code Or to comply with other appticablela'Ns. no amendment or termination of the Plan shall divest any Participant of any nghts witn respect to compensation de- ferred before the date of the amendment cr termination. ARTICLE XI. APPL.ICABLE LAW This Plan snail be construed unoer the laws of the state where the Employer is IccatQc .and is established with the intent that it meet the reculrements of an'eltglble deterred compensation plan- under Section 457 of the Code, as amended, The provisions of this P!an shall be interpreted wnareverpossible in conformitywlll'1thElriiquir8~nts oftrlat s;ction. ARTICLE XII. Any notice 10 a oarty of this plan docu menl s'1all be given at the fast address provrded in '....riting from one ::)srty to another party. Any notice sL.JCM rT:elled shall be d;termir:ed to hav9 b~n received by such party.