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HomeMy Public PortalAboutResolution 1994-06-02 Amending the Deferred Compensation Plan for Employees of the Town of Fraser ---- - 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 I --- 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 2 ýÿ ---- -- -- 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. 3 -- -- --- ýÿ 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. 4 ýÿ --- -- IN WITNESS, WHEREOF, Town o~ser has caused~~is Plan to be executed this I day of "4<<.../ ' 1*. . ~SER By. ,- Ma 5 C:\WP\RRM\FRASER\SEC-457.IRC 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