Resolution 2599
,\"
\.,.
'-'
RESOLUTION NO. 2599
2
3
A RESOLUTION OF THE SOUTH TAHOE PUBLIC UTILITY DISTRICT
AUTHORIZING AMENDMENT TO THE DISTRICT'S PENSION PLAN
BE IT RESOLVED by the Board of Directors of the South
4
Tahoe Public Utility District, County of El Dorado, State of
5
6
7
8
9
10
11
12
13
14
15
California, as follows:
WHEREAS, the South Tahoe Public Utility District Board of
Directors has entered into the MOU dated 7/1/94 - 7/3/96 with the
International Union of Operating Engineers', Stationary Local 39.
WHEREAS, Section 2, Item B states: liThe District agrees
to amend the Plan Document adding provisions which will allow
participant loans from individual accounts in the Pension Plan."
THEREFORE, be it resolved that the South Tahoe Public
Utility District:,. Board of Directors authorizes the trustees to
amend Sections 6.2 (c), 7.4, 9.2 (c), and Article VIII of the South
Tahoe Public Utility District Pension Plan to provide participant
]6 loans.
17 PASSED AND ADOPTED at a duly held regular meeting of the Board
18 of Directors of the South Tahoe Public Utility District on July 21,
]9 1994, by the following vote:
20 AYES: Strohm, Mason, Wallace, Jones, Mosbacher
2] NOES: None
22 ABSENT: None
23
24
25
26
27
28
~u~
DUANE WALLACE, PRESIDENT OF THE BOARD
SOUTH TAHOE PUBLIC UTILITY DISTRICT
ATTEST:
KATHY
SOUTH
.' .
~
,
~
Amendment to the
South Tahoe Public utility District
Pension Plan
This Amendment to the South Tahoe Public utility District Pension
Plan (the Plan) is made and entered into this 21st day of Jalv
1994
WHEREAS, the parties hereto entered into this Plan effective
July 1, 1968; and
WHEREAS, it is the desire of the parties hereto to amend said
Plan effective June 30, 1994, as hereinafter provided; and
WHEREAS, any such amendment will not adversely affect the
benefits already accrued as of the adoption date of this
Amendment to the Participants under said Plan; and
THEREFORE, Sections 6.2(e), 7.11, 9.2(c) will be added and
Article VIII will be amended as follows:
Section 6.2(e) -
Any security interest held by the Plan
by reason of an outstanding loan to the
Participant or Former Participant shall
be taken into account in determining the
amount of the Pre-Retirement Survivor
Annuity.
~
Section 7.4 -
Loans to Participants
(a) The Trustee may, in the Trustee's
discretion, make loans to Participants
and Beneficiaries under the following
circumstances: (1) loans shall be made
available to all Participants and
Beneficiaries on a reasonably equivalent
basis; (2) loans shall not be made
available to Highly Compensated
Employees in an amount greater than the
amount made available to other
Participants and Beneficiaries; (3)
loans shall bear a reasonable rate of
interest; (4) loans shall be adequately
secured; and (5) shall provide for
repayment over a reasonable period of
time.
(b) Loans made pursuant to this Section
(when added to the outstanding balance
of all other loans made by the Plan to
the Participant) shall be limited to the
lesser of:
~
~
'~
(1) $50,000 reduced by the excess (if
any) of the highest outstanding balance
of loans from the Plan to the
Participant during the one year period
ending on the day before the date on
which such loan is made, over the
outstanding balance of loans from the
Plan to the Participant on the date on
which such loan was made, or
~
(2) one-half (1/2) of the present value
of the non-forfeitable accrued benefit
of the Participant under the Plan.
For purposes of this limit, all plans of
the Employer shall be considered one plan.
Additionally, with respect to any loan made
prior to January 1, 1987, the $50,000 limit
specified in (1) above shall be unreduced.
~
(c) Loans shall provide for level
amortization with payments to be made
not less frequently than quarterly over
a period not to exceed five (5) years.
However, loans used to acquire any
dwelling unit which,to within a
reasonable time, is to be used
(determined at the time the loan is
made) as a principal residence of the
Participant shall provide for periodic
repayment over a reasonable period of
time that may exceed five (5) years.
Notwithstanding the foregoing, loans
made prior to January 1, 1987 which are
used to acquire, construct, reconstruct
or SUbstantially rehabilitate any
dwelling unit which, within a reasonable
period of time is to be used (determined
at the time the loan is made) as a
principal residence or the Participant
or a member of his family (within the
meaning of Code Section 267(c) (4)) may
provide for periodic repayment over a
reasonable period of time that may
exceed five (5) years. Additionally,
loans made prior to January 1, 1987, may
provide for periodic payments which are
made less frequently than quarterly and
which do not necessarily result in level
amortization.
~
. .
~
c
(d) Any loan made pursuant to this
section after August 18, 1985 where the
Vested interest of the Participant is
used to secure such loan shall require
the written consent of the Participant's
spouse in a manner consistent with
Section 6.5(a). Such written consent
must be obtained within the 90-day
period prior to the date the loan is
made. However, no spousal consent shall
be required under this paragraph if the
total accrued benefit subject to the
security is not in excess of $3,500.
(e) Any loans granted or renewed on or
after the last day of the first Plan
Year beginning after December 31, 1988
shall be made pursuant to a Participant
loan program. Such loan program shall
be established in writing and must
include, but need not be limited to, the
following:
(1) the identity of the person or
positions
\.,
(2) a procedure for applying for loans;
(3) the basis on which loans will be
approved or denied;
(4) limitations, if any, on the types
and amounts of loans of'fered;
(5) the procedure under the program for
determining a reasonable rate of
interest;
(6) the types of collateral which may
secure a Participant loan; and
(7) the events constituting default and
the steps that will be taken to preserve
Plan assets.
\..,
Such Participant loan program shall be
contained in a separate written document
which, when properly executed, is hereby
incorporated by reference and made a part of
the Plan. Furthermore, such Participant loan
program may be modified or amended in writing
from time to time without the necessity of
amending this Section.
~
\.,
\.,
"
.>>~ .;-.
Section 9.2(c) -
(c) This provision shall not apply to
the extent a Participant or Beneficiary
is indebted to the Plan, as a result of
a loan from the Plan. At the time a
distribution is to be made to or for a
Participant's or Beneficiary's benefit,
such proportion of the amount
distributed as shall be applied against
or used to discharge such loan
indebtedness. Prior to making a
payment, however, the Participant or
Beneficiary must be given written notice
by the Administrator that such loan
indebtedness is to be so paid in whole
or part from his Participant's Account.
If the Participant or Beneficiary does
not agree that the loan indebtedness is
a valid claim against his Vested
Participant's Account, he shall be
entitled to a review of the validity of
the claim in accordance with procedures
provided in Sections 2.12 and 2.13.
Article VIII -
will be known as:
AMENDMENT, TERMINATION, MERGERS AND
LOANS
IN WITNESS WHEREOF, the Corporation and Trustees have hereunder
affixed their signatures at
this 21st day of July. 1994
By:
GU1AJ0t G)fJ.~_
Title:
President. Board of Directors
TRUSTEES
tAl/~ ~
Rbbert G. aer, General Manager
"~/iY)Al yYIc~CvJ)r~_
Rhonda McFarlane, Finance Officer
~ W~A <vyy\Ct41....^-..-
Nancy Hus mann, Human Resources Director