Resolution 2581
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RESOLUTION NO. 2581
A RESOLUTION OF THE BOARD OF DIRECTORS OF
SOUTH TAHOE PUBLIC UTILITY DISTRICT
APPROVING A DEFERRED COMPENSATION PLAN DOCUMENT
FOR THE EMPLOYEES OF SOUTH TAHOE PUBLIC UTILITY DISTRICT
BE IT RESOLVED, by the Board of Directors of the South
Tahoe Public Utility District, County of El Dorado, state of
California, as follows:
WHEREAS, the Deferred compensation Plan, hereinafter
9 referred to as the Plan, has been established for the benefit of
10 the South Tahoe Public Utility District employees; and
II
WHEREAS the Board of Directors desires the Plan be in
12 conformance with California Government Code S 53212-53214, and as
13 provided in section 457 of the Internal Revenue Code of 1986.
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NOW THEREFORE BE IT RESOLVED, by the Board of Directors
15 of South Tahoe Public Utility District, a public agency in the
16 County of El Dorado, State of California as follows:
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The Board of Directors adopts the attached Plan
18 Document establishing the Deferred Compensation Plan for the
19 District's employees; and
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The attached Plan Document re-states and supersedes all
2] previous Plan documents
22 September 1, 1977.
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since the Plan's original adoption on
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Resolution No. 2581 - Page 2
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4 PASSED AND ADOPTED at a duly held Regular Meeting of
5 the Board of Directors of the South Tahoe Public utility District
6 on the 18th day of November, 1993 by the following vote:
7 AYES: Directors Pierini, Mosbacher, Mason, Wallace
8 NOES: None
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None (One
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LOU PIERINI, CHAIRMAN OF THE BOARD
SOUTH TAHOE PUBLIC UTILITY DISTRICT
ABSENT:
ATTEST:Ytd: a ~~
PAT A. MAMATH, LERK OF BOARD
SOUTH TAHOE PUBLIC UTILITY DISTRICT
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Resolution No. 2581
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SOUTH TAHOE PUBLIC UTILITY DISTRICT
DEFERRED COMPENSATION PLAN
Chapter 01
PLAN ESTABLISHED
01-01 Plan Established, In accordance
with the provisions of Sections 53212-
53214 of California government code,
and as provided in Section 457 of the
Internal Revenue Code of 1986, the
South Tahoe Public Utility District
{"District"} establishes the South
Tahoe Public Utility District Deferred
Compensation Plan {"Plan"} for its
employees, Nothing contained in this
Plan shall be deemed to constitute an
employment agreement between the
participant and employer and nothing
contained herein shall be deemed to
give a participant any right to be
retained in the employment of the
District.
This Plan document amends, re-states
and supersedes all previous plan
documents since the Plan's original
adoption on September 1, 1977.
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Chapter 02
DEFINITIONS
02-01 Employer. "Employer" means the
South Tahoe Public Utility District, a
public entity within the State of
California, as described in Section
1.457-2{c} {2} of the final regulations
promulgated under Section 457 of the
Internal Revenue Code of 1986,
02-02 Compensation. "Compensation"
means all payments made to a public
employee by the employer as
remuneration for services rendered.
02-03 Deferred Compensation.
"Deferred Compensation" means the
amount of the participant's
compensation which the participant and
the employer shall mutually agree
{prior 'to the date on which such
compensation is earned} will be
deferred.
02 - 04 Accumulated Deferrals.
"Accumulated Deferrals" means
compensation deferred under the Plan,
adjusted until date of payment by
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income received, increases or decreases
in investment value, fees and any prior
distributions made.
02-05 Participation Agreement,
"Participation Agreement" means the
agreement executed and filed by an
eligible employee with the employer
pursuant to Chapter 04, in which the
eligible employee elects to become a
participant in the Plan,
02-06 Separation from Service.
"Separation {or separates} from
Service" means "separation from
service" as that term is interpreted
for the purposes of Section 402
{e} {4} {A} {iii} of the Internal Revenue
Code and refers to the severance of the
participant's employment with the
employer. A participant will be deemed
to have severed his or her employment
as of the date of his or her last
payroll.
02-07 Participant. "Participant" means
any eligible employee of the employer
who executes a participation agreement
with the Committee assenting to the
provisions of this plan, once the
agreement has been approved by the
Committee or its designee,
02-08 Beneficiary. "Beneficiary" means
a beneficiary of a participant, a
participant's estate, or any other
person whose interest in the plan is
derived from the participant.
02-09 Committee. "Committee" means the
Committee for deferred compensation
appointed by the District
Administrator{s} .
02-10 Eligible Employee. "Eligible
Employee" means any person who is
employed by and recei ves any type of
compensation from the employer for whom
services are rendered, and who is a
full time or permanent part-time
regular employee working in a position
authorized and has completed six months
of employment.
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02-11 District AdministratorCs) .
"District Administrator (s)" means the
person(s) so appointed by the
Employer's Board of Directors.
02-12 Plan Year. "Plan Year" shall be
the calendar year ending December 31.
02-13 Open Enrollment Period. "Open
Enrollment Period" means any period of
time during which eligible employees
may enroll in the Plan, Open
Enrollment periods shall be designated
at least annually, at the sole
discretion of the Committee.
Chapter 03
ADMINISTRATION
03-01 Administered by Committee.
plan shall be administered by
Committee which shall represent
employer in all matters concerning
administration of this plan.
This
the
the
the
03-02 Committee to adopt rules and
regulations. The Committee shall have
full power and authority to adopt rules
and regulations for the administration
of the Plan, and to interpret, alter,
amend, or revoke any rules and
regulations so adopted.
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03-03 Committee action fair and
reasonable. Every action taken by the
Committee shall be presumed to be a
fair and reasonable exercise of the
authority vested in or the duties
imposed upon it. The Committee and its
individual members shall be deemed to
have exercised reasonable care,
diligence and prudence and to have
acted impartially as to all persons
interested, unless the contrary may be
proven by affirmative evidence.
03-04 Committee
accoun ts . To
administration
Committee shall
maintained a
ledger account
participant.
to maintain records of
facilitate an orderly
of the Plan, the
maintain or cause to be
deferred compensation
with respect to each
03-05 Deferred Compensation Fund. All
deferred compensation hereunder may be
paid into a special fund created in the
treasury of the District called the
"deferred compensation fund". All
costs of administration and staffing of
the plan, expenses of the Committee,
and such other amounts determined by
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the Committee and permitted by law, may
be paid as necessary out of the
deferred compensation fund. Amounts in
the deferred compensation fund may be
invested as directed by the Committee.
All accumulated deferrals payable to
participants or their respective
beneficiary or beneficiaries shall be
paid from the deferred compensation
fund unless otherwise paid.
Chapter 04
PARTICIPATION IN THE PLAN
04-01 Enrollment. Enrollment in the
plan,
(1) An eligible employee may become
a participant by executing a
participation agreement. Compensation
will be deferred for any payroll period
only if a participation agreement
providing for such deferral is executed
by the participant and approved by the
Committee or its designee before the
beginning of the month in which payroll
period ends.
(2) In signing the participation
agreement, the participant elects to
participate in this plan and consents
to the employer deferring the amount
specified in the participation
agreement from the participant's gross
compensation for each pay period. The
amount specified must equal at least
ten dollars per pay period and shall
continue until changed or revoked
pursuant to paragraph 04-06 or 04..07 of
this plan.
04-02 Plan to Plan Transfers.
(1) Transfers to the Plan: If a
participant was formerly a participant
in an eligible state deferred
compensation plan (within the meaning
of Section 457 of the Internal Revenue
Code and the regulations thereunder),
and if such plan permits the direct
transfer of the participant's interest
therein to the plan, then the plan
shall accept assets representing the
value of such interest; provided,
however, the Committee may require in
its sole discretion that some or all of
such interest be transferred in cash or
its equivalent. Such amount shall be
held, accounted for, administered and
otherwise treated in the same manner as
compensation deferred by the
participant under the plan except that:
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(a) Only the amount, if any,
transferred to this plan which was
deferred under the transferor plan in
the taxable year when transfer occurs
shall be treated as compensation
deferred under the Plan in such year,
(b) No amount may be transferred to
this plan as of the time when such
amount is paid or made available under
the Section 457 Plan of the
participant's prior employer,
(2) Transfers from the Plan: The
amounts credited to the account of a
former participant in the Plan may be
transferred to another eligible
deferred compensation plan (within the
meaning of Section 457 of the Internal
Revenue Code and the regulations
thereunder) and in which the former
participant currently participates, and
if such plan provides for the
acceptance of such amounts. The only
rollovers or transfers allowable under
Section 457 of the Internal Revenue
Code are from one eligible Section 457
plan to another eligible Section 457
plan,
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If a participant, prior to making a
final election under Chap. 04-11(2)
regarding the method of payment,
accepts employment with an employer who
offers an eligible Section 457 plan,
and the participant becomes a
participant in that plan, then
accumulated deferrals may, at the
election of the participant and after
written notice to the Committee, be
transferred to the other plan, provided
that plan provides for the acceptance
of such transfers.
(3) Application for Transfer: If the
conditions in subsections (1) and (2)
of this section are met and the
participant wishes to transfer his/her
account, he/she shall complete any
application form and/or other documents
as may be required by the
administrator.
(4) Administrative Rules: The
Committee shall prescribe such rules
consistent with the provisions of
subsections (1) and (2) of this section
concerning plan-to-plan transfers as in
its sole judgment it deems desirable
for the orderly administration of the
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Plan,
04-03 Deferral Limitation.
(1) Except as provided in
Chap. 04-04, relating to catch-up, the
maximum that may be deferred under the
Plan for any taxable year of a
participant shall not exceed the lesser
of seven thousand five hundred dollars
or thirty-three and one-third percent
of the participant's includable
compensation, each reduced:
(a) By any amount excludable
from the participant's gross income for
that taxable year under Section 403(b)
of the Internal Revenue Code; and
(b) By any amount:
(i) Excluded from gross
income under Section 402(a) (8) or 402
(h) (1) (B) of the Internal Revenue code
(relating to a Participant's elective
deferrals to simplified employee
pensions) for that taxable year;
(ii) For which a
deduction is allowable for that taxable
year by reason of a contribution to an
organization described in Section 501
(c) (18) of the Internal Revenue Code
(relating to pension trusts created
before June 25, 1959, forming part of a
plan for payment of benefits under a
pension plan funded only by
contributions of employees); or
(iii) Which is deferred
by a participant under Section 401(k)
of the Internal Revenue code (relating
to qualified cash or deferred
arrangement) during that taxable year;
and
(c) By any amount the
participant contributes to any other
Section 457 of the Internal Revenue
Code (relating to deferred compensation
plan (s)) during the taxable year,
(2) "Includible Compensation" for
the purposes of this sections means
includable compensation as defined in
Section 457 (e) (5) of the Internal
Revenue Code and as further defined by
Treasury Department Regulation 1,457-
2(e) (2) interpreting that section, and
is determined without regard to
community property laws. Includible
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compensation for a taxable year
includes only compensation from the
employer that is attributable to
services performed for the employer and
that is includible in the participant's
gross income for the taxable year for
federal income tax purposes.
Accordingly, a participant's includible
compensation for a taxable year does
not include an amount payable by the
employer that is excludable from the
employee's gross income under:
(a) Section 457 of the Internal
Revenue Code;
Section 403(b) of the Internal
Code (relating to annuity
purchased by Section
of the Internal Revenue Code,
to organizations or public
(b)
Revenue
contracts
SOl (c) (3)
(relating
schools) ;
(c) Section l05(d) of the Internal
Revenue Code (relating to wage
continuation plans) ;
(d) Section 9ll of the Internal
Revenue Code (relating to citizens or
residents of the united States living
abroad) ;
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(e) Section 402 (a) (8) or
402 (h) (l) (B) of the Internal Revenue
Code (relating to simplified employee
pensions) ;
(f) Section SOl (c) (l8) of the
Internal Revenue Code (relating to
certain pension trusts); or
(g) Section 40l(k) of the Internal
Revenue Code (relating to qualified
cash or deferred arrangements) ,
(3) In computing includible
compensation, total gross compensation
as shown on District earnings
statements must be reduced by:
(a) Section 4l4(h) of the Internal
Revenue Code, before tax contributions
to retirement plans; and
(b) Any Section l25 of the
Internal Revenue code, contributions to
cafeteria plans (including those which
include such items as dependent care
salary reduction plans) before
excluding the items listed in
subsection (2) (a) through (g) of this
section.
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04-04 Catch-up provision. For one or
more of the participant's last three
taxable years ending before attaining
normal retirement age under the plan,
the maximum deferral shall be lesser
of:
(l) Fifteen thousand dollars for
the taxable year, reduced in the same
manner as the seven thousand five
hundred dollars limitation is reduced
in Chap. 04-03, or
(2) the sum of:
(a) the limitations
established for purposes of Chap. 04-03
of the Plan for the taxable year
(determined without regard to this
section), plus
(b) So much of the
limitation established under Chap. 04-
03 for taxable years before the taxable
year as has not theretofore been used
under Chap. 04-03 or Chap. 04-04. A
prior taxable year shall be taken into
account only if:
(i)
December 3l, 1978;
It begins after
(ii) The participant was
eligible to participate in the Plan
during all or any portion of the
taxable year, and;
(i i i) Compensa t ion
deferred (if any) under the Plan during
the taxable year was subject to a
maximum limitation (as established
under Chap. 04-03).
A prior taxable year includes a
taxable year in which the participant
was eligible to participate in an
eligible plan sponsored by another
enti ty . In no event can the
participant elect to have the catch-up
provision apply more than once whether
or not the full catch-up had been
utilized.
"Normal retirement age, II as
herein, means the range of ages:
used
Ending not later than age seventy
and one-half; and or is still employed
at the age designated in writing by the
participant.
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Beginning not earlier than the
earliest age at which the participant
has the right to retire under a
District authorized pension for which
the participant is eligible without
consent of the District and under which
the participant will receive immediate
retirement benefits without actuarial
adjustment due to retirement prior to
some later specified age in a District
authorized pension plan.
This catch-up provision may not be
used in the year in which the
participant attains age 70 l/2, and may
not be used in any year thereafter.
04-05 Committee may disallow deferral.
The participant acknowledges the right
of the Committee to disallow deferral
of compensation under the Plan in
excess of the limitations in Chap. 04-
03 and 04-04. However, the Committee
shall have no duty to assure that
amounts deferred are in compliance with
such limitations.
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04-06 Modification of deferral or
investment option (s) . A participant
may change his/her deferral amount
during an open enrollment period,
Changes in the amount of the deferral
must equal at least five dollars per
pay period. Investmnt changes may be
made at any time subject to the terms
of the investment provider(s) ,
Beneficiaries who are entitled to
receive accumulated deferrals may
change investment 'options not more than
four times per year.
A change shall be effective for any
calendar month only if the participant
signs a new participation agreement
which is approved by the beginning of
that calendar month. The Committee
reserves the right to defer the
effective date of any change.
During the payout process, the
Committee may periodically liquidate
mutual fund shares in the amounts
necessary to meet distribution
requirements for a six month period.
04-07 Suspension and Reinstatement of
Deferral.
SUSPENSION.
time direct
A participant may at any
that deferrals under the
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participant's participation agreement
cease by completing the proper form and
filing it with the Committee no later
than the last day of the payroll period
prior to the payroll period during
which the deferrals are to cease;
however, accumulated deferrals shall
only be paid as provided in Chap. 04-09
through 04-14.
REINSTATEMENT, A participant who has
directed the cessation of deferrals may
resume deferrals for any calendar month
commencing no sooner than the month
following the close of the next open
enrollment period by executing a new
participation agreement to defer
compensation. The waiting period shall
not apply to participants who are on
leave without pay as discussed in Chap.
06-01 nor shall it apply in those
instances where deferrals are stopped
due to deferral limitations described
in Chap, 04-03 and 04-04.
04-08 Investment Options. Each
participant shall designate on his/her
participation agreement the investment
option (s) in which he/she wishes to
have invested. The investment option(s)
shall be selected from those options
made available for this purpose from
time to time by the Committee, in its
sole discretion.
The Committee may make
available as options for investment;
(1) A fixed rate investment or pool
of investments.
(2) Specified mutual fund shares;
or
(3) Fixed or variable life
insurance, or other options permitted
by law and selected by the Committee.
In the event that a selected investment
option experiences a loss, the
participant's accumulated deferrals
payable hereunder shall likewise
reflect a loss, rather than income, for
the period.
Nothing in this section shall
require the employer to invest any
amount in the investments selected and
whether or not the employer so invests,
no participant shall have any right,
title, or interest in the amounts
deferred or assets so invested.
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04 -09 Designation of beneficiaries.
Each participant shall have the right
to designate a beneficiary or
beneficiaries to receive accumulated
deferrals in the event of participant's
death. If no such designation is in
effect on a participant's death, the
beneficiary shall be the surviving
spouse, then the beneficiary shall be
the participant's estate. A participant
may change his/her beneficiary
designation at any time by filing a
change of beneficiary form with the
Committee. A participant may also
change his/her beneficiary designation
by completing the beneficiary
designation portion of a participation
agreement form,
The participant may name:
(I) A designated organization or
person (including without limitation
his/her unborn or later adopted
children). If unborn or later adopted
children are to be included, the
designation must so indicate. The date
of birth must be furnished for any
living person who is named and who is
under the age of eighteen.
(2) His or her estate;
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(3) A trust which is in existence,
or which is to be established under the
participant's last will, For an
existing trust, the participant must
provide the name of the trust and the
date it was established.
The participant may name
beneficiaries in addition
beneficiaries. Any named
must have a tax ID. number
security number.
contingent
to primary
beneficiary
or a social
04-10 Distribution to participant after
separation from service. After
separation from service, accumulated
deferrals shall be paid to the
participant in one or more installments
as elected by the participant pursuant
to Chap. 04-11.
04-11 Distribution in the event of
death of participant or beneficiary.
(1) Should the participant die at any
time, accumulated deferrals shall be
paid to the beneficiary or
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beneficiaries designated by the
participant pursuant to Chap. 04-09.
The accumulated deferrals shall be paid
out as provided in Chap. 04-09 through
04-14. If no beneficiary is designated
as provided in the participation
agreement, or if the designated
beneficiary does not survive a period
of thirty days, then a lump sum or
series of payments shall be paid, in
accordance with Chap. 04-09 through 04-
13, to the surviving spouse, or if
none, a lump sum shall be paid to the
estate of the participant.
(2) In the event a beneficiary
survives the participant by thirty days
and becomes entitled to receive the
accumulated deferrals, accumulated
deferrals shall become payable to the
beneficiary's estate on the twenty-
fifth day of the second month following
the beneficiary's death, unless
accumulated deferrals are being paid in
the form of an annuity, in which case
the disposition of the remaining amount
shall be determined by the annuity
contract Such annuity contracts shall
be issued pursuant to the rules set
forth in Chap, 04-14.
04-12 Elections Regarding Distribution.
Each parti.cipant (or in the event of
death, each beneficiary other than an
organization, estate, or trust) shall
elect when his/her payout will begin
and the payout period.
(I) Election regarding time of
payment. The election regarding the
time when payment will begin shall be
made when a participant separates from
service (or dies, having separated from
service and having previously elected
when payment will begin). Once made,
the election regarding when payout will
begin is irrevocable as to the
participant or beneficiary making the
election.
The election regarding when payment
will begin:
(a) By a participant who
separates from service other than by
reason of death, must be made not later
than sixty days after separation from
service. Payment may begin on the
central payroll date nearest the
twenty-fifth day of the month in which
an election is filed with the Committee
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on forms provided for that purpose and
payment must begin within the time
prescribed by Chap. 04-14.
(b) By a beneficiary, other than an
organization, estate or trust, where
the participant was not already
recei ving payments, must be made not
later than sixty days after the
participant's death. Payment may begin
on the central payroll date nearest the
twenty-fifth day of the month in which
the election is filed with the
Committee on forms provided for that
purpose, and payment must begin within
the time prescribed by Chap. 04-14.
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(2) Election regarding method of
payment, The participant (or
beneficiary other than an organization,
estate or trust) who makes an election
regarding the date payment will begin,
may also elect the period over which
payments will be made. The payout
period election may be made either at
the time he/she elects a beginning date
for payout or at any time not later
than sixty days prior to the date
payout is to begin, Once having made
this election, the participant (or
beneficiary, other than an
organization, estate, or trust) may
change the payout period election not
later than sixty days prior to the date
payout is to begin.
Such a beneficiary may also make this
election where the participant was
already receiving payments but, as
provided in Chap. 04-13 (3) (a), must
receive distribution at least as
rapidly as it was being distributed to
the participant. Such a beneficiary
must make the payout period election
not later than sixty days after the
death of the participant and payout
will be suspended following the
participant's death until the
beneficiary either makes a payout
period election or begins receiving
payment as provided in subsection (4)
of this section, Provided, if the
participant was receiving payout in the
form of an annuity contract, then the
successor's right shall be limited by
the terms of that contract.
(3) How elections are made. A
participant or beneficiary makes
elections allowed under this section by
completing and filing applicable
\.,.
payment request
Committee.
forms
with
the
(4) Consequences in absence of a
timely election regarding time of
payment. Absence of a t~mely election
regarding when payout ~s to begin,
payout will begin on the payroll date
nearest the twenty-fifth day of the
month following the month in which the
election period ends, and will be made
in a lump sum if the accumulated
deferrals as of the end of the election
period are less than twenty-five
thousand dollars or, if the accumulated
deferrals are twenty-five thousand
dollars or more, in the form of a
lifetime annuity with a 15 year certain
period or:
(a) As may be necessary under
the minimum payout requirements of
Section 457 (d) (2) (B) (i) (I) of the
Internal Revenue Code, requiring
amounts to be paid not later than as
determined under Section 401 (a) (9) (G)
of the Internal Revenue Code; or
(b) As ~ay be necessary under
Section 457 (d) (2) (B) (i) (Il) of the
Internal Revenue Code, requiring
amounts not distributed to the
participant during his/her life to be
distributed at least as rapidly as they
were being distributed as of the
participants death.
(5) Effects of certain employment
changes, Transfers from the Plan are
allowed in the circumstances described
in Chap. 04-02 (2).
(6) Consequences in absence of a
timely election regarding method of
payment. In the absence of a timely
election regarding the period of time
over which payment will be made,
payment will be made in the manner
described in subsection (4) of this
section.
(7) Payment to an organization,
estate, or trust. Any amount payable
to an organization, estate, or trust
shall be paid in a lump sum as
prescribed in Chap. 04-14 (3).
04-13 Investment mode election. Each
participant shall designate on his
participation agreement his selected
investment mode. Such designation
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shall continue unless changed pursuant
to this section, The investment mode
shall be selected from those modes made
available for this purpose from time to
time by the Committee, in its sole
discretion.
The Committee may make available as
modes for investment:
(I) a fixed rate of interest product
or
(2) specified mutual fund shares,
deposits with a credit union, savings
and loan association, bank, or mutual
savings bank, life insurance, shares of
an investment company, or fixed and/or
variable annuities or other modes
permitted by law and selected by the
Committee.
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The Committee may from time to time
change the available modes for
investment. In the event that the
selected investment mode experiences a
loss, the participant's accumulated
deferrals payable hereunder shall
likewise reflect loss, rather than
income, for the period. Nothing in
this section shall require the employer
to invest any amount in the investments
and if the employer should so invest,
no participant shall have any right,
title, or interest in the assets so
invested.
04-14 Distribution of deferrals.
(I) General Rule. Assuming a
timely election is allowed and has been
made pursuant to Chap. 04-11, payment
will be made in at least annual,
substantially non-increasing amounts,
Payments are also subject to
limitations in subsections (2) through
(5) of this section,
(2) Distribution to participant. A
participant must either:
(a) Receive his/her entire interest
prior to the latest of:
(i) The April 1st immediately
following the close of the plan year in
which the participant attains age
seventy and one-half; or
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(ii) The
immediately following the
plan year in which the
separates from services
employer; or
April 1st
close of the
participant
wi th the
(b) Begin receiving his/her
interest not later than the time
specified in (a) of this subsection and
receive it over a period not longer
than either:
(i) The life of the
participant;
(ii) The life of the
participant and a beneficiary
designated by the participant;
(iii) The life
expectancy of the participant; or
(iv) The life expectancy
of the participant and a designated
beneficiary.
Payment must be sufficiently rapid
to satisfy the requirements of Section
457 (d) (2) (B) (i) (I) and Section 401
(a) (9) (G) of the Internal Revenue Code,
Provided that, until tables are issued
by the Secretary of the Treasury, if
provision is made for the payment of a
portion of the accumulated deferrals to
a beneficiary, the amount payable to
the participant must actuarially
exceed two-thirds of the maximum amount
payable to the participant had no
provision been made for payments to the
beneficiary (determined as of the
commencement of the distribution) .
Once payments to a participant
begin, the participant may accelerate
the payment schedule only in the event
of an unforeseeable emergency and
subject to the provisions of Chap. 05
regarding such emergencies.
(3) Distribution to beneficiaries,
{a} When distribution begins
prior to the participant's death, then
payout must be made at least as rapidly
as it was being made to the
participant, When the beneficiary is
an organization, estate or trust, then
payment will be payable in a lump sum
on the twenty-fifth day of the second
month following the participant's
death.
8
\.,
(b) When distribution does not begin
prior to the participant's death, and
is to be made:
(i) To an organization, estate or
trust, then payment will be payable in
one lump sum on the twenty-fifth day of
the second month following the
participant's death,
(H) To a living beneficiary
designated by the participant other
than the participant's surviving
spouse, and, by election, not to begin
within one year of the participant's
death, then the payment must be made
within five years of the participant's
death;
(Hi) To a living beneficiary
designated by the participant other
than the participant's surviving
spouse, and, by election, beginning
within one year of the participant's
death, then payment must be made within
fifteen years of the participant's
death;
\.,
(iv) To the participant's surviving
spouse, whether as designated
beneficiary, or by default, then
payment must begin prior to the April
1st immediately following the later of
the close of the plan year in which the
participant would have attained age
seventy and one-half or, if later, the
year in which the participant separated
from services, and payment may be made
over the lifetime of the surviving
spouse or over a period not longer than
the life expectancy of the surviving
spouse.
(4) For purposes of this section,
life expectancies will be computed by
use of the expected return multiples in
Treasury Department Regulation 1.72 - 9
or, if distribution is to be effected
through a contract issued by an
insurance company, by use of the
mortality tables of such company.
Where payment is being made over the
joint lives of the participant and the
participant's surviving spouse, the
life expectancy of the participant and
the participant's surviving spouse may
be recalculated annually,
(5) Notwithstanding anything in this
Plan to the contrary, distributions
from the Plan will be made in
compliance with the minimum
\.,
distribution rules of Section 457(d) (2)
of the Internal Revenue Code, and in
compliance with Treasury Department
Regulations issued under Sections
401 (a) (9) and 457 (d) (2) of the
Internal Revenue Code.
Chapter 05
UNFORESEEABLE EMERGENCY
05-01 Unforeseeable Emergency.
Notwithstanding any other prOV1S1ons in
Plan Chap. 01 through 15, in the event
of an unforeseeable emergency, a
participant or beneficiary entitled to
accumulated deferrals may request the
Committee to payout a portion of
accumulated deferrals, If the
application for payment is approved by
the Committee, payment will be made
within sixty days following such an
approval. The amount paid shall be
limited strictly to that amount
reasonably necessary to satisfy the
emergency need.
For purposes of this Plan, an
unforeseeable emergency shall be severe
financial hardship to the participant
resulting from:
(1) A sudden and unexpected illness
or accident of the participant or of a
dependent (as defined in Section 152{a)
of the Internal Revenue Code) of the
participant,
(2) Loss of the participant's
property due to casualty, or
(3) Other similar extraordinary and
unforeseeable circumstances arising as
a result of events beyond the control
of the participant.
The circumstances that will constitute
an unforeseeable emergency will depend
upon the facts of each case, but in any
case, payment shall not be made to the
extent that such hardship is or may be
relieved
(a) through reimbursement or
compensation by insurance or otherwise;
(b) by liquidation of the
participant's assets, to the extent
liquidation of such assets would not
itself cause severe financial hardship,
or (c) by cessation of deferrals
under the plan. Examples of what shall
9
~
not be considered to be unforeseeable
emergencies include the need to send a
participant's child to college or the
desire to purchase a home.
Chapter 06
LEAVE OF ABSENCE
06-01 Leave of
participant is on
absence from
participation in
continue.
Absence. If a
an approved leave of
the employer,
this plan shall
Chapter 07
AMENDMENT OR TERMI:NATI:ON OF THE PLAN
07-01 Termination of Plan. The
employer or the Committee may at any
time terminate this Plan. Upon such
termination, accumulated deferrals will
be paid pursuant to Chap. 04 of the
Plan, The participant's deferrals will
cease.
\.
07-02 Amendment of Plan. The
Committee may also amend the
provisions of this Plan at any time:
Provided, however, that no amendment
shall affect the rights of the
participants or their beneficiaries
regarding accumulated deferrals at the
time of the amendment.
Chapter 08
RELATI:ONSHI:P TO OTHER PLANS
08-01 Retirement and Social Security
not Reduced. It is intended that
pursuant to Section 457 of the
Internal Revenue Code, the amount of
deferred compensation will not be
considered as current compensation for
purposes of federal income taxation.
Such amounts will, however, be
included as compensation in
determining benefits or rights under
the employer's group insurance, other
retirement plans and FICA, Payments
under this Plan will supplement
retirement and death benefits payable
under the employer's group insurance
and other retirement plans.
\.
Chapter 09
TRANSFER IN LIEU OF CASH
09-01 Assets in Lieu of Cash. Upon
the occurrence of any event requiring
the payment of accumulated deferrals
under this Plan, the Committee may, in
its sole discretion, elect to honor a
request from the participant to
substitute the transfer in kind and
assignment of any asset which the
employer has acquired at fair market
value.
Chapter 10
NON-ASSI:GNABI:LITY CLAUSE
10-01 Accumulated Deferrals not
Assignable. It is agreed that neither
the participant, nor the participant's
beneficiaries, nor any other designee,
shall have any right to commute, sell,
assign, transfer, or otherwise convey
the right to receive any payments
hereunder, which payments and right
thereto are expressly declared to be
non-assignable and nontransferable; and
in the event of attempt to assign or
transfer, the employer shall have no
further liability hereunder, nor shall
any unpaid accumulated deferrals be
subject to attachment, garnishment or
execution, or be transferable by
operation of law in event of
bankruptcy, insolvency, except to the
extent otherwise required by law,
Chapter 11
ASSETS
11-01 Plan Assets. All amounts of
compensation deferred under the Plan,
all property and rights to property
(including right as a beneficiary of a
contract providing life insurance
protection) purchased with such
amounts, property or rights to property
shall remain (until paid or made
available to the participant or the
participant's beneficiary or
beneficiaries under the Plan) solely
the property and rights of the
employer, (without being restricted to
the benefits under the Plan) and shall
be subject only to the claims of
general creditors of the employer.
10
\.,
Chapter 12
PARTICIPATION BY COMMITTEE MEMBERS
12-01 Participation by Committee
Members. Members of the Committee, who
are otherwise eligible, may participate
in the Plan under the same terms and
conditions as apply to other
participants, but an individual member
shall not participate in any committee
action taken with respect to that
member's participation.
Chapter 13
EMPLOYER PARTICIPATION
13-01 Employer Contributions. The
employer may, pursuant to a changed or
new participation agreement filed by a
participant as specified in Chapters
04-06 or 04-07, add additional deferred
compensation for services to be
rendered by the employee to the
employer during any calendar month,
provided:
\.,
(1) The employee has elected to have
such additional compensation deferred,
invested, and distributed, pursuant to
this Plan, prior to the calendar month
in which the compensation is earned;
and
(2) Such additional deferred
compensation, when added to all other
deferred compensation under the Plan,
does not exceed the maximum deferral
permitted by Chapter 04,
Chapter 14
INVESTMENT RESPONSIBILITY
14-01 Investment Responsibility. The
employer may, but is not required to,
invest funds held pursuant to
participation agreements between
participants and the employer in
accordance with the requests made by
each participant, The Committee shall
retain the right to approve or
disapprove such investment requests.
Any action by the Committee in
investing funds, or approving of any
such investment of funds, shall not be
considered to be either an endorsement
or guarantee of any investment, nor
shall it be considered to attest to
financial soundness or the suitability
of any investment for the purpose of
'-
meeting future obligations,
Chapter 15
COMMITTEE POWERS
15-01 Plan Prevails. In the event
form or other document used
administering this Plan, including
not limited to enrollment forms
marketing materials, conflict with
terms of the Plan, the terms of
Plan shall prevail,
any
in
but
and
the
the
15-02 Decision Binding. The Committee
is authorized to determine any matters
concerning the rights of any
participant under this Plan and such
determination shall be binding on the
participant and any beneficiary
thereof.
15-03 Committee to Interpret. The
Committee is authorized to construe
this Plan and resolve any ambiguity in
the Plan. The Plan and any form or
other document used in administering
the Plan shall be interpreted, and this
Plan shall be administered, so as to
comply \.lith Sections 457 of the
Internal Revenue Code and the
regulations of the Treasury Department
promulgated thereunder.
15-04 Tax Status not Guaranteed. The
Committee does not represent or
guarantee that any particular federal
or state income, payroll, personal
property or other tax consequence will
occur because of the participant's
participation in this Plan. The
participant should consult with the
participant's own representative
regarding all questions of federal or
state income, payroll, personal
property, or other tax consequences
arising from participation in this
Plan.
15-05 Committee May Require Court
Order. The Committee or the employer,
if in doubt concerning the correctness
of their action in making a payment of
accumulated deferrals, may suspend
payment until satisfied as to the
correctness of the payment or the
person to receive the payment or to
allow the filing in any state court of
11
\..,
competent jurisdiction of a civil
action seeking a determination of the
amounts to be paid and the persons to
receive them, The Committee and the
employer shall comply with the final
orders of the court in any such suit
and the participant, for the
participant and the participant's
beneficiary or beneficiaries, consents
to be bound thereby. Whenever payment
of accumulated deferrals is suspended
pursuant to this section, the time for
a participant or beneficiary making any
election under Chap, 04 -11 shall not
begin until amount(s) and person(s)
entitled are determined either by
written agreement of all parties
concerned or by a court judgment that
has become final,
15-06 Delegation of Authority. The
Committee may delegate its functions to
be performed under this Plan to any
designee with legal authority to
perform such functions,
Chapter 16
APPLICABLE LAW
\.
16-01 Plan to conform to state law.
This Plan shall be construed under the
laws of the State of California.
16-02 Plan to conform to federal law.
This Plan is intended to be an eligible
state deferred compensation plan within
the meaning of Section 457 of the
Internal Revenue Code, and Treasury
Department Regulation 1.457-2 (a), and
shall be interpreted accordingly,
*******************
*******************
PASSED AND ADOPTED at a duly held Regular Meeting of the Board of Directors of the
South Tahoe Public Utility District on the 18th day of November, 1993 by the following
vote:
AYES:
NOES:
ABSENT:
ATTEST:
.f/xi: a #;?~
PAT A. MAMATH, CLERK OF BOARD
SOUTH TAHOE PUBLIC UTILITY DISTRICT
'-'
12
/}
~~PlA.,';;'
C--LOU PIERIN , PRESIDENT OF THE BOARD
SOUTH TAHOE PUBLIC UTILITY DISTRICT