2501_00001RESOLUTIONNO.2501
RESOLUTION ADOPTINGAMENDMENT TO
O City of Moses LakeDEFERREDCOMPENSATION PLAN
WHEREAS,the City of Moses Lake
Moses Lake(hereinafter"Employer")heretofore establishedthe Deferred Compensation Plan
(hereinafter "Plan");and
WHEREAS,theEmployer desires to amend the Plan to conform with the final and temporaryTreasuryregulationsunder§401(a)(9)of the Internal Revenue Code as published inthe Federal RegisteronApril17,2002,74 FR 18987;and
-WHEREAS,thisamendment shall supersede the provisions of the Plan to the extent those provisionsareinconsistentwiththeprovisionsofthisamendment.
NOWTHEREFORE,BE IT RESOLVED,that,effectiveas Indicated herein,the Employer herebyamendsthePlanasfollows:
PART I-Plan Document Amendment -Section 4.7 of the Plan is replaced in its entiretywiththefollowing:
"Section 4.7 Minimum Distribution Requirements.
(a)General Rules
(i)Effective Date.Unless an earlier effective date is specified in Part II below,the provisions ofthisarticlewillapplyforpurposesofdeterminingrequiredminimumdistributionsforcalendaryearsbeginningwiththe2003calendaryear.
(ii)Coordination with Minimum Distribution Requirements Previously in Effect.Ifthe Planspecifiesaneffectivedateofthisarticlethatisearlierthancalendaryearsbeginningwiththe2003calendaryear,required minimum distributions for 2002 under this articlewillbe determinedasfollows.Ifthe totalamount of2002 required minimum distributions underthe plan made to thedistributeepriortotheeffectivedateofthisarticleequalsorexceedstherequiredminimumdistributionsdeterminedunderthisarticle,then no additional distributions willbe required to bemadefor2002onoraftersuchdatetothedistributee.Ifthe totalamount of 2002 requiredminimumdistributionsundertheplanmadetothedistributeepriortotheeffectivedateofthisarticleislessthantheamountdeterminedunderthisarticle,then required minimum distributionsfor2002onandaftersuchdatewillbedeterminedsothatthetotalamountofrequiredminimumdistributionsfor2002madetothedistributeewillbetheamountdeterminedunderthisarticle.
(iii)Precedence.The requirements of thisarticle willtake precedence over any.inconsistentprovisionsoftheplan.
(iv)Requirements of Treasury Regulations incorporated.Alldistributions required underthisarticlewillbedeterminedandmadeinaccordancewiththeTreasuryregulationsundersection401(a)(9)ofthe Internal Revenue Code.
(v)TEFRA Section 242(b)(2)Elections.Notwithstanding the other provisions of thisarticle,distributions maybe made under a designation made before January 1,1984,in accordance withsection242(b)(2)ofthe Tax Equityand Fiscal Responsibility Act (TEFRA)and the provisions oftheplanthatrelatetosection242(b)(2)of TEFRA.
GOV457 Plan -1 -June 2002
(b)Time and Manner of Distribution.
(i)Required Beginning Date.The participant'sentire interest willbe distributed,or begin to be
distributed,tothe participant no later than the participant's required beginning date.
(ii)Death of Participant Before Distributions Begin.Iftheparticipant dies before distributions
begin,the participant's entire interest willbe distributed,or begin to be distributed,no later than
as follows:
(1)Ifthe participant's survivingspouse is the participant's sole designated beneficiary,then,
except as provided in the adoption agreement,distributions to the surviving spouse will begin
by December 31 of the calendar year immediately followingthe calendar year in which the
participant died,or by December 31 of the calendar year in which the participant would have
attained age 70½,if later.
(2)Ifthe participant's survivingspouse is not the participant's sole designated beneficiary,then,
exceptas provided in the adoption agreement,distributions to the designeted beneficiary will
begin by December 31 of the calendar year immediately followingthe calendaryear in which
the participant died.
(3)Ifthereis no designated beneficiary as of September 30 of the year followingtheyear of the
participant's death,the participant's entire interest willbe distributed by December 31 of the
calendar year containingthe fifthanniversary ofthe participant's death.
(4)If the participant's surviving spouse is the participant's sole designated beneficiary and the
surviving spouse dies after the participant but before distributions tothe survivingspouse .begin,this section 4.7(b)(ii),other than section 4.7(b)(ii)(1),willapply as ifthe surviving
spouse were the participant.
For purposes ofthis section 4.7(b)(ii)and section 4.7(d),unless section 4.7(b)(ii)(4)applies,
distributions are considered to begin on the participant's required beginning date.Ifsection
4.7(b)(ii)(4)applies,distributions are considered to begin on the date distributions are required to
begin to the surviving spouse under section 4.7(b)(ii)(1).Ifdistributions under an annuity
purchased from an insurance company irrevocably commencetothe participant before the
participants required beginning date (ortothe participant's surviving spouse before the date
distributions are required to begin to the surviving spouse under section 4,7(b)(ii)(1)),the date
distributions are considered to begin is the date distributions actually commence.
(iii)Forms of Distribution.Unless the participant's interest is distributed in the form of an annuity
purchased from an insurance companyor in a single sum on or before the required beginning
date,as of the first distribution calendar year distributions will be made in accordance with
sections 4.7(c)and 4.7(d)of this article.Ifthe participant's interest is distributed in the form of an
annuity purchased from an insurance company,distributions thereunder will be made in
accordance withthe requirements of section 401(a)(9)of the Code and the Treasury regulations.
(c)Required Minimum Distributions During Participant's Lifetime.
(i)Amount of Required Minimum Distribution For Each Distribution Calendar Year.During the
participant's lifetime,the minimum amount that willbe distributed for each distributioncalendar
year is the lesser of:
(1)the quotient obtainedby dividingthe participant's account balance by the distribution period in
the UriiformLifetimeTable set forth in section 1.401(a)(9)-9 of the Treasury regulations,using
the participant's age as of the participant's birthday Inthe distribution calendar year;or
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O (2)ifthe participant's sole designated beneficiary for the distributioncalendar year is theparticipant's spouse,the quotient obtainedby dividingtheparticipant's account balance bythenumberintheJointandLastSurvivorTablesetforthinsection1.401(a)(9)-9 of theTreasuryregulations,usingthe participant's and spouse's attained ages as of theparticipant's and spouse's birthdays in thedistribution calendar year.
(ii)Lifetime Required MinimumDistributions Continue Through Year of Participant's Death.Required minimumdistributions willbe determined under thissection 4.7(c)beginning withthefirstdistributioncalendaryearanduptoandincludingthedistributioncalendaryearthatincludestheparticipant's date ofdeath
(d)Required Minimum Distributions After Participant's Death.
(i)Death On or After Date Distributions Begin.
(1)Participant Survived by Designated Beneficiary.Ifthe participant dies on or after the datedistributionsbeginandthereisadesignatedbeneficiary,theminimum amount that willbedistributedforeachdistributioncalendaryearaftertheyearoftheparticipant's death is thequotientobtainedbydividingtheparticipant's account balance by the longer of the remaininglifeexpectancyoftheparticipantortheremaininglifeexpectancyoftheparticipant'sdesignatedbeneficiary,determined as follows:
(I)The participant's remaining lifeexpectancy is calculated using the age of the participantintheyearofdeath,reduced by one for each subsequent year.
(II)If the participant's surviving spouse is the participant's sole designated beneficiary,theremaininglifeexpectancyofthesurvivingspouseiscalculatedforeachdistributionOcalendaryearaftertheyearoftheparticipant's death using the surviving spouse's age asofthespouse's birthday in that year.For distribution calendaryears after the year of thesurvivingspouse's death,the remaining lifeexpectancy of thesurvivingspouse iscalculatedusingtheageofthesurvivingspouseasofthespouse's birthday in thecalendaryearofthespouse's death,reduced by one for each subsequent calendaryear.
(III)Ifthe participant's surviving spouse is not the participant's sole designated beneficiary,the designated beneficiary's remaining lifeexpectancyis calculated using theage of thebeneficiaryintheyearfollowingtheyearoftheparticipant's death,reduced by one foreachsubsequentyear.
(2)No Designated Beneficiary.If theparticipant dies onor after the date distributions beginandthereisnodesignatedbeneficiaryasofSeptember30oftheyearaftertheyearoftheparticipant's death,the minimumamount that willbe distributed for each distribution calendaryearaftertheyearoftheparticipant's death is thequotient obtainedby dividingtheparticipant's account balance by theparticipant's remaining life expectancycalculated usingtheageoftheparticipantintheyearofdeath,reduced by one for each subsequent year.
(ii)Death Before Date Distributions Begin.
(1)Participant Survived by Designated Beneficiary.Except as provided in thissection 4.7,iftheparticipantdiesbeforethedatedistributionsbeginandthereisadesignatedbeneficiary,theminimum amount that willbe distributed for each distribution calendar year afterthe yearoftheparticipant's death is thequotient obtained by dividing theparticipant's account balancebytheremaininglifeexpectancyoftheparticipant's designated beneficiary,determined asprovidedinsection4.7(d)(i).
(2)No Designated Beneficiary,ifthe participant dies before the date distributions begin andthereisnodesignated.beneficiary as of September 30 oftheyear followingthe year of the
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participant's death,distribution of theparticipant's entire interest willbe completed by
December 31 ofthecalendar year containingthefifthanniversaryofthe participant's death.
(3)Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required to
Begin.Ifthe participant dies before the date distributions begin,the partîcipant's surviving
spouse is theparticipant's sole designated beneficiary,and the survivingspouse dies before
distributions are required to begin to the surviving spouse under section 4.7(b)(ii)(1),this
section 4.7(d)(ii)willapply as ifthe survivingspouse were the participant.
(e)5-Year Rule
(i)Ifthe participant dies before distributions begin and thereis a designated beneficiary,distribution
to the designated beneficiary is not required to begin by the date specified in section 4.7(b)(ii)of
the plan,but the participant's entire interest willbe distributed to the designated beneficiary by
Decernber 31 ofthecalendar year containingthe fifthanniversary of the participant's death.If the
participant's surviving spouse is the participant's sole designated beneficiary and the surviving
spouse dies after theparticipant but before distributions to eitherthe participant or the surviving
spouse begin,this section willapply as ifthesurviving spouse were the participant.
(ii)Participants or beneficiaries may elect on an individual basis whether the 5-year rule in section
4.7(e)(i)or the lifeexpectancy rule in sections 4.7(b)(ii)and 4.7(d)(ii)of the plan applies to
distributions afterthe death of a participant who has a designated beneficiary.The election must
be made no later thanthe earlier of September 30 of the calendaryear in which distribution would
be required to begin under section 4.7(b)(ii)of the plan,or by September 30 of the calendar year
which contains the fifthanniversary ofthe participant's (or,if applicable,surviving spouse's)
death.Ifneither the participant nor beneficiary makes an election under this paragraph,
distributions willbe made in accordance with sections 4.7(b)(ii),4.7(d)(ii)and 4.7(e)(i)ofthe plan.
(iii)A designated beneficiary who is receiving payments under the 5-year rule in section4.7(e)(i)may
make a new electionto receive payments under the lifeexpectancyrule untilDecember 31,2003,
provided that all amounts that would have been required to be distributed under the life
expectancy rule for all distribution calendar years before 2004 are distributed by the earlier of
December 31,2003 or the end oftheS-year period.
(f)Definitions.
(i)Designated beneficiary.The individualwho is designated as the beneficiary under section 5.1 of
theplan and is the designated beneficiary under section401(a)(9)of the Internal Revenue Code
and section 1.401(a)(9)-1,Q&A-4,of theTreasury regulations.
(ii)Distribution calendar year.A calendar year for which a minimum distribution is required.For
distributions beginning before the participant's death,thefirst distribution calendar year is the
calendar year immediately preceding thecalendar year which contains theparticipant's required
beginning date.For distributions beginning afterthe participant's death,the first distribution
calendar year is the calendar year in whichdistributions are required to begin under section
4.7(b)(ii).The required minimum distribution for the participant's first distribution calendar year will
be made on or before the participant's required beginning date.The required minimum
distribution for other distribution calendar years,including the required minimum distribution for
the distribution calendar year in which the participant's required beginning date occurs,willbe
made on or before December 31 ofthat distribution calendaryear.
(iii)Life expectancy.Lifeexpectancyas computedby use of the Single LifeTable in section
1.401(a)(9)-9 of the Treasury regulations.
(iv)Participant's account balance.The accountbalance as ofthe last valuation date in the
calendar year immediately preceding the distribution calender year (valuationcalendar year)
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O increased by the amount of any contributions made and allocatedor forfeitures allocatedtotheaccountbalanceasofdatesinthevaluationcalendaryearafterthevaluationdateanddecreasedbydistributionsmadeinthevaluationcalendaryearafterthevaluationdate.The account balanceforthevaluationcalendaryearincludesanyamountsrolledoverortransferredtotheplaneitherinthevaluationcalendaryearorinthedistributioncalendaryearifdistributedortransferredinthevaluationcalendaryear.
(v)Required beginning date.The require beginning date means theApril1st followingthe later of(i)the calendar year inwhich the Participant attains age 70-1/2 or (ii)the calender year in whichtheParticipantretires.
PARTII-Plan Amendment Optional Effective Date
Section 1.Effective Date of Plan Amendment for Section 401(a)(9)Final and Temporary TreasuryRegulations.
Ifelected below,the provisions of thisamendment willapply as well for purposes,of determining requiredminimumdistributionsforthe2002distributioncalendaryear.
Option 1:Yes,this amendment willapply to the2002 distribution calendar year for
distributions that are made on or after ,2002.
Option 2:[3 No,this amendment willnotapply to the2002 distribution calendaryear.
Ifno option is selected,Option 2 shallbe deemed tobe selected.O IN WITNESS WHEREOF,the Employer has executed thisPlan Amendment this 10th day of
December ,2002 .
City of Moses Lake
(Name of Employer)
SEAL
by .
Its Mayor
(Title)
inance (TIIe)Director (Witness)
O
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