HomeMy Public PortalAboutResolution 1994-06-02 Amending the Deferred Compensation Plan for Employees of the Town of Fraser
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TOWN OF FRASER. . /
RESOLUTION NO. &, -..;} - C; '1
A RESOLUTION AMENDING THE DEFERRED COMPENSATION PLAN FOR EMPLOYEES
OF THE TOWN OF FRASER.
WHEREAS, the Board of Trustees of the Town of Fraser,
Colorado, by Resolution No. 1-1-90, adopted the Town of Fraser ,
1990 Deferred Compensation PIan, pursuant to Section 457 of the
Internal Revenue Code; and
WHEREAS, the Board of Trustees has determined that it is
necessary and desirable to update and amend certain elements of
said plan to make it available to all eligible employees of the
Town.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN
OF FRASER, COLORADO, THAT the Town of Fraser, 1990 Deferred
Compensation Plan is amended in its entirety to read as set forth
in the amended PIan which is attached to this Resolution as
Attachment 1 and incorporated herein by this reference, and said
amended PIan is hereby adopted by the Board of Trustees, .effective
June 1, 1994.
PASSED, ADOPTED AND APPROVED BY THE BOARD OF TRUSTEES OF THE TOWN
OF FRASER, COLORADO, THIS 1st day of June, 1994.
TRUSTEES OF THE
RASER, COLORADO
BY:
ATTEST:
( .S E A L ) Clerk
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Attachment 1
TOWN OF FRASER
DEFERRED COMPENSATION PLAN
UNDER CODE SECTION 457
OF THE INTERNAL REVENUE CODE
(As Amended Effective June 1, 1994)
I. Name and Purpose
The name of this pIan is the ~own of Fraser, 1990
Employee Deferred Compensation PIan (the "PIan"). Its purpose is
to provide certain employees employed by the Town of Fraser with
the opportunity to defer a portion of their base salary and/or
bonuses otherwise payable to them as employees by the Town during
the calendar year of 1990 and subsequent calendar years while
this Plan is in effect (herein referred to as "Plan Years") .
II. Effective Date
The PIan shall be effective as of January 1, 1990 and shall
terminate effective December 31, 1995.
III. Participants
Each person who is an employee of the Town on January 1 of a
Plan Year (an "Employee") shall be eligible to participate in the
Plan for that Plan Year. (Any Employee who elects to participate
in the Plan is hereafter called a "Participant".) The Town will
establish for each Participant a funded deferred compensation
account, as specified in Section V.
IV. Election of Deferral
(A) Each Employee shall be entitled to make an irrevo-
cable election (in the form of Exhibit A hereto), as
specified in Section VII, to defer any portion of
their base salary or bonuses up to $7,500 for each Plan
Year.
(B) Each such election shall include an irrevocable
election as to the period of deferral and the amount of
deferral, no later then December 15 of the Plan Year.
V. Deferred Compensation Accounts
A separate trust fund account shall be established and
maintained for each Participant. 100% of the base salary and/or
bonus deferred pursuant hereto by each Participant during the
period beginning January 1, 1990 and ending December 31, 1995,
shall be deposited into this trust fund account for the benefit
of the Participant within 15 days of the next scheduled pay date
after receipt of the election. The Participant shall decide
where the funds will be deposited and may direct the investment
of these funds, however, the Participant shall bear all invest-
ment risk, bank charges, commissions, etc., and shall receive all
interest or other gains associated with these funds. In
addition, these funds must be deposited or invested in accounts
and investments permitted by the state of Colorado, for local
governments.
VI. Method of Distribution of Deferred Compensation
(A) No distribution of a Participant's base salary
and/or bonus deferred pursuant hereto may be made
except as provided in this section VI.
(B) Subject to the provisions of section VIII, base
salary and/or bonus deferred pursuant hereto, shall be
payable in cash at the time and amount selected by the
Participant.
VII. Manner of Electinq Deferral
A Participant may elect to defer the base salary and/or
bonus payable to him for any Plan Year by giving written notice
to the Town which notice must be received by the Town prior to
December 15 of the Plan Year, and be in the form of Exhibit A
hereto (and otherwise in accordance with the Plan) and set forth
the Participant's irrevocable election as to:
(A) The amount of the Participant's base salary and/or
bonus for such Plan Year to be deferred; and
(B) The period of deferral, which may not end earlier
than January 1, 1991 nor later than December 31, 1995.
VIII. Distribution Upon Death
If any participant dies before receiving all amounts in his
trust account, the. unpaid amounts shall be paid to the Partici-
pant's surviving spouse or, if the Participant has no surviving
spouse, to the Participant's estate, with that payment to be made
at the time selected by the Participant. Notwithstanding the
foregoing, if a Participant's spouse fails to survive the
Participant by at least ten days, that spouse shall be deemed to
have predeceased the Participant for purposes hereof.
IX. Benefit Plans
The amount of each Participant's base salary and/or bonus
which he elects to defer under the PIan shall not be deemed to be
compensation for the purposes of calculating the amount of a
Participant's benefits or contributions under a pension plan or
retirement plan (qualified under Section 401 (a) of the Internal
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Revenue Code), the amount of life insurance payable under any
life insurance plan established or maintained by the Town, or.any
disability benefit payments payable under any disability plan
established or maintained by the Town, except to the extent
specifically provided in any such plan.
X. Participant's Riqhts
Establishment of the Plan shall not be construed as giving
any Participant the right to be retained in the Town's service or
employ or the right to receive any benefits not specifically
provided by the Plan. All funds paid or payable to the partici-
pant's trust accounts shall be the sole property of the Partici-
pant. These funds would be held in a trust capacity and are not
subject to the claims of the Town's general creditors.
XI. Non-alienabilitv and Non-transferabilitv
The rights of a Participant to the payment of deferred
compensation as provided in the Plan shall not be assigned, _
transferred, pledged or encumbered or be subject in any manner to
alienation or anticipation. No Participant may borrow against
his account. No account shall be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, charge, garnishment, execution, or levy of any kind,
whether voluntary or involuntary, including but not limited to
any liability which is for alimony or any other payments for the
support of a spouse or former spouse, or for any other relative
of any Participant.
XII. Administration
The administrator of this Plan shall be the Board of
Trustees of the Town, except as otherwise determined by such
Board of Trustees. Such Board shall have the authority to adopt
rules and regulations for carrying out the Plan and to interpret,
construe and implement the provisions hereof. Any decision or
interpretation of any provision of the Plan adopted by such Board
shall be final and conclusive. A Participant who is also a
member- of the Board of Trustees shall not participate in any
decisions involving any request made by him or relating in way
solely to his rights, duties and obligations as a Participant
under this Plan.
XIII. Amendment and Termination
The Plan may, at any time or from time to time, be amended,
modified or terminated by the Board of Trustees of the Town.
However, no amendment, modification or termination of the Plan
shall, without the consent of a Participant, adversely affect
such Participant's rights with respect to amounts then in his
account.
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XIV. General provisions
(A) Controlling Law. Except to the extent superseded
by federal law, the laws of the state of Colorado shall
be controlling in all matters relating to the Plan,
including construction and performance hereof.
(B) Captions. The captions of sections and paragraphs
of this Plan are for convenience of reference only and
shall not control or affect the meaning or construction
of any of its provisions.
(C) Facility of Payment. Any amounts payable hereun-
der to any person who is under legal disability or who,
to the judgment of the Town's Board of Trustees, is
unable to properly manage his financial affairs may be
paid to the legal representative of such person or may
be applied for the benefit of such person in any manner
which the Board of Trustees of the Town may select, and
any such payment shall be deemed to be payment for such
person's account and shall be a complete discharge of
all liability of the Town with respect to the amount so
paid.
(D) Withholding Payroll Taxes. To the extent required
by the laws in effect at the time compensation or
deferred compensation or deferred compensation payments
are made, the Town shall withhold from such compensa-
tion, or from deferred compensation payments made
hereunder, any taxes required, to be withheld for
federal, state of local government purposes.
(E) Administrative Expenses. All expense of adminis-
tering the Plan shall be borne by the Town and no part
thereof shall be charged against any Participant's
account or any amounts distributable hereunder.
(F) Any provision of this Plan prohibited by the law of
any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition without
invalidating the remaining provisions hereof.
(G) Except as otherwise expressly provided herein, no
member of the Board of Trustees of the Town, and no
employee or agent of the Town, shall have any liability
to any person, firm, or corporation based on or arising
out of the Plan except in the case of gross negligence
or fraud.
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IN WITNESS, WHEREOF, Town o~ser has caused~~is Plan to
be executed this I day of "4<<.../ ' 1*.
. ~SER
By. ,-
Ma
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EXHIBIT A
NOTICE OF ELECTION
TO:
In accordance with the provisions of the Town of Fraser 1990
Employee Deferred Compensation Plan. I hereby elect to defer
the portion of the base salary and/or bonus specified below that
would otherwise be payable to me for services as an employee of
the Town of Fraser, Colorado for the Plan Year beginning January
1 and ending December 31, 19__, with such deferral to be for the
period specified below.
Deferral Election for Base Salary and/or Bonus:
(1) Amount Of Deferral
Check
one
a) All future payments up to $7,500, until
further notified to cease.
b) $ , from my next paycheck(s).
c) Cease any further deferrals.
(2) Deferred until , 19__ (Date may be
'no earlier than January 1, 1991 and no later than
December 31, 1995, and must be the 15th or last day of
a month.)
All payments will be made in a lump sum on the date elected
above, or as otherwise directed by the Participant.
Employee
Date:
Received on the day of , 19 --' on
behalf of the Town of Fraser.
By:
C:\WP\RRH\FRASER\SEC-457.EXA