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HomeMy Public PortalAbout09950REPEALED BY NO. 10440 O R D I N A N C E NO. 9950 AN ORDINANCE repealing Ordinance No. 9891 adopted June 13, 1996 and enacting a new Ordinance in lieu thereof on the same subject, establishing an amended and restated Deferred Compensation Plan and Trust for employees of the Metropolitan St. Louis Sewer District. BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT: Section One: Ordinance No. 9891 adopted June 13, 1996, is hereby repealed, without, however, altering or extinguishing the legal rights and obligations established by such Ordinance. Section Two: There is hereby established a restated and amended Deferred Compensation Plan to comply with amendments to Section 457 of the Internal Revenue Code of 1986, as amended and to incorporate Trust provisions in the plan document so that plan assets are held in trust for the exclusive benefit of participants and their beneficiaries as required under Section 1448 of the Small Business Job Protection Act of 1996 ("H.R. 3448"). This Ordinance is effective August 20, 1996. METROPOLITAN ST. LOUIS SEWER DISTRICT DEFERRED COMPENSATION PLAN Section 1: Purpose. The primary purpose of this restated Metropolitan St. Louis Sewer District Deferred Compensation Plan ("Plan") is to benefit those employees of the Metropolitan St. Louis Sewer District who elect to participate by permitting them to defer a portion of their compensation in order to provide for retirement benefits and certain other contingencies such as death, disability, loans, and unforeseeable emergencies. In addition, this Ordinance establishes a Trust to hold all of the assets and income of the Plan. Section 2. Definitions. For purposes of this Plan, certain terms shall have the following meanings: 2.1 "Administrator" shall mean the committee appointed by the Employer pursuant to Section 11. 2.2 "Beneficiary" means the person or legal entity named by a Participant, in accordance with procedures established by the Administrator, to receive any payments payable under the Plan in the event of the death of the Participant. In the manner and within the limits prescribed by the Administrator, a Participant may designate more than one Beneficiary to share a benefit or to receive a benefit if one or more other Beneficiaries should die before such benefit becomes payable. Except as otherwise provided herein, if no Beneficiary is named, or if no named Beneficiary is living or in existence at the time a benefit is payable, the estate of the deceased Participant shall be the Beneficiary. A Participant may change or revoke a Beneficiary designation at any time without the consent of the Beneficiary, by filing with the administrator a new Beneficiary designation. Any change of Beneficiary designation shall revoke all prior Beneficiary designations made by that Participant. 2.3 "Benefit Settlement Election Form" shall mean the form on which a Participant or his Beneficiary selects the form in which his Book Account shall be paid and when payment shall commence if the automatic provisions of Section 6.2 of the Plan do not apply. 2.4 "Book Account" shall mean the separate bookkeeping account established for each Participant and shall be composed of all Sub-Book Accounts held for a Participant. -3- SL01 0034845.07 May 15, 2014 2.5 "Code" shall mean the Internal Revenue Code of 1986, as amended. 2.6 "Contribution" shall mean the Compensation deferred by Participants during each pay period and paid over to the Trustee hereunder. 2.7 "Compensation" shall mean only compensation paid to the Participant by the Employer and which is attributable to services performed for the Employer as reported on Form W-2 and shall include amounts paid for overtime. For purposes of this Plan, compensation shall include any single sum payment for accrued but unused either sick leave or vacation, or both for purposes of the "underutilization" provisions of Sections 2, 16 and 4.2. 2.8 "Disability" shall mean a physical or mental condition which renders the Participant incapable of continuing in the employment of the Employer. An Employee shall be deemed to be disabled when certified by a physician licensed by the state of Missouri who is acceptable to the Employer. 2.9 "Effective Date " shall mean the effective date specified in the adopting ordinance. 2.10 "Eligible Plan" shall mean a plan which satisfies the provisions of Code Section 457. 2.11 "Employee" shall mean any individual performing services for the Employer as an Employee. 2.12 "Employer" shall mean the Metropolitan St. Louis Sewer District. -4- SL01 0034845.07 May 15, 2014 2.13 "Entry Date" shall mean January 1st, April 1st, July 1st, and October 1st of each year. 2.14 "Includable Compensation" shall mean Compensation for services performed for the Employer which is currently includable in gross income, taking into account the provisions of Code Section 457 and Chapter 1, Subtitle A of the Internal Revenue Code of 1986, as amended. 2.15 "Investment" shall mean each of the properties in which a Participant's deferred Compensation may be invested as indicated by the Participant on the Participation Agreement executed by him. The term "Investment" shall include by way of example but not by way of limitation, the collective funds created by the 1995 Amended and Restated Declaration of Trust -- American Express Collective Investment Funds for Employee Benefits Trusts. Any assets of the Employer held pursuant to this Plan and added to any of said collective funds at any time, shall be subject to all of the provisions of said Declaration of Trust as amended from time to time. 2.16 "Normal Retirement Age" means either of the following dates: (i) the first day of the month coinciding with or next following a person's fifty-fifth (55) birthday and completion of sixty (60) months of Continuous Service; or (ii) the first day of any month selected by the Participant following his Separation from Service on which benefits commence, provided the Participant has eighty (80) points on the day on which he has a Separation from Service; -5- SL01 0034845.07 May 15, 2014 provided the Participant notifies the Assistant Administrator in writing prior to the calendar year in which the Participant intends to utilize the "underutilization" provision of Section 4.2. Such writing shall advise the Assistant Administrator that such prospective date shall be deemed the Participant's Normal Retirement Age for purposes of determining his/her maximum deferral amount under the "underutilization" provision of Section 4.2 of this Plan. If a Participant fails to make such written designation, his Normal Retirement Age shall mean his sixty-fifth (65) birthday. For purposes of this section "points" shall have the same meaning as the definition included in Section 1.28 of the Metropolitan St. Louis Sewer District Employees' Pension Plan. 2.17 "Participant" shall mean any Employee who becomes covered under this Plan in accordance with the terms of Section 3. "Former Participant" shall mean a Participant who has separated from service with the employer but who has a balance remaining in his Book Account. 2.18 "Participation Agreement" shall mean the election form on which an Employee agrees to defer his Compensation or to indicate a change in investment instruction. The Participation Agreement may also be referred to as the "Enrollment/Change Form." 2.19 "Plan Ceiling Amount" shall mean the lesser of; a. $7,500, or b. 33-1/3% of the Participant's Includable Compensation (which is generally equal to 25% of the Participant's Compensation) for the taxable year, -6- SL01 0034845.07 May 15, 2014 reduced by the amount, if any, which is excludable from the Participant's Federal gross income for that taxable year because of a contribution made to (i) an annuity arrangement described in Code Section 403(b), (ii) a qualified cash or deferred arrangement described in Code Section 401(k)(2), (iii) a simplified employee pension plan described in Code Section 408(k), or (iv) an employee-funded pension plan described in Code Section 501(c)(18). For purposes of this Section, the $7,500 limit shall be adjusted from time-to-time as provided in Section 1447 of H.R. 3448 as finally enacted. 2.20 "Plan Year" shall mean the calendar year. 2.21 "Required Beginning Date" means the later of (i) April 1 of the calendar year immediately following the calendar year in which the Participant attains age 70-1/2 or (ii) April 1 of the calendar year following the calendar year in which the Employee separates from service after attaining Normal Retirement Age. 2.22 "Retirement" shall mean a severance of the Employer-Employee relationship with the Employer on or after attaining Normal Retirement Age. 2.23 "Separation From Service" shall mean a severance of the Employer-Employee relationship with the Employer because of death, Disability, Retirement, resignation or discharge within the meaning of Code Section 402(e)(4)(A)(iii). 2.24 "Settlement Date" shall mean the Valuation Date coinciding with or next preceding the date on which a distribution is made to a Participant or his Beneficiary from the Participant's Book Account. 2.25 "Sub-Book Account" shall mean the interest of a Participant in an Investment of the Trust Fund. Compensation deferred under the Plan may be further -7- SL01 0034845.07 May 15, 2014 segregated into contributions made before January 1, 1990, and contributions made after that date if the Administrator so elects. 2.26 "Trust" shall mean the trust established under Section 15 et seq of this Ordinance. 2.27 "Trustee" shall mean the Trustees of the Employer as constituted from time to time. 2.28 "Trust Fund" shall mean the aggregate amounts of Contributions transferred to the Trust established hereunder. It shall include the income, gains and losses both realized or unrealized which accrue thereon and any property in which such Contributions are invested. 2.29 "Transferee Eligible Plan" shall mean an Eligible Plan to which amounts deferred under this Plan are transferred. 2.30 "Valuation Date" shall mean December 31 of each calendar year and any other date or dates as may be specified by the Administrator. Section 3. Eligibility. 3.1 Any Employee is eligible to become a Participant in the Plan provided he irrevocably elects to reduce and defer his Compensation by signing a Participation Agreement. 3.2 Any eligible Employee may quarterly elect to participate in the Plan by agreeing to reduce his Compensation provided such election is irrevocably made on the Participation Agreement designated by the Employer and delivered to the Administrator at least -8- SL01 0034845.07 May 15, 2014 thirty (30) days prior to the next following Entry Date to which the deferral election applies. In the case of an individual who is employed after the Effective Date of this Plan, however, such Employee shall have an option to elect to defer some portion of his Compensation provided such election is irrevocably made on or before the first day the Employee begins to perform services for the Employer. An Employee's election to defer Compensation shall apply only to Compensation which is earned and which becomes payable after the Employee has effectively executed and delivered to the Administrator a Participation Agreement. 3.3 A Participant may revoke his election to participate in the Plan and to discontinue deferral of his Compensation by delivering to the Administrator written notice thirty (30) days prior to the pay period to which the revocation shall be effective; provided, however, once a Participant has revoked his election to participate, he may not reinstate his election until the next Entry Date and then only if an effective Participation Agreement is delivered to the Administrator at least thirty (30) days prior to the Entry Date to which the reinstated election applies. 3.4 A Participant may change the amount of Compensation he/she wishes to defer by delivering a new Participation Agreement to the Administrator on each of the following dates with respect to Compensation earned on and after the date indicated: DELIVER NEW PARTICIPATION AGREEMENT TO ADMINISTRATOR BEFORE WITH RESPECT TO COMPENSATION EARNED ON AND AFTER December 1 January 1 March 1 April 1 June 1 July 1 -9- SL01 0034845.07 May 15, 2014 September 1 October 1 If the Participant does not deliver a new Participation Agreement to the Administrator on the required date indicated above, his/her then current Participation Agreement shall constitute an affirmative ratification of the then effective Participation Agreement. 3.5 Each Participant of the Plan may on the Participation Agreement (also referred to as the "Enrollment/Change Form") executed by him/her, select and designate in a percentage amount or absolute dollar increments, that portion of his/her Contribution which is to be invested in the various Investments made available from time to time under the Plan. If a Participant fails to designate the Investment in which his/her Contribution should be invested on the Participation Agreement, his/her Contribution shall be invested by the Trustee in its sole discretion and subject to the Trust provision hereinafter. 3.6 On a monthly basis, a Participant may alter or change the allocation of his/her Book Account among various Investments. To implement a change in Investments, the Participant shall comply with the administrative procedures required by the Administrator as amended from time-to-time. 3.7 A Participant's failure to execute a new Participation Agreement on or before March 1, June 1, September 1, and December 1 shall constitute an affirmative ratification of his/her then effective Participation Agreement. Section 4. Maximum Deferral Amount. 4.1 Except as provided in Section 4.2, the maximum amount of Compensation that a Participant may defer during the Participant's taxable year shall not exceed the Plan Ceiling Amount. -10- SL01 0034845.07 May 15, 2014 4.2 A Participant may make a one-time election to defer in one (1) or more of each of the last three (3) taxable years of the Participant ending before the Participant attains Normal Retirement Age, the lesser of; a. $15,000, reduced by the amount, if any, which is excludable from the Participant's Federal gross income for that taxable year because of a contribution made to (i) an annuity arrangement described in Code Section 403(b), (ii) a qualified cash or deferred arrangement described in Code Section 401(k)(2), (iii) a simplified employee pension plan described in Code Section 408(k), or (iv) an employee-funded pension plan described in Code Section 501(c)(18). The aforesaid $15,000 amount shall be subject to the same adjustment, if any, permitted under Section 1447 of H.R. 3448. b. The underutilized limitation. For purposes of this section the "underutilized limitation" shall mean the sum of; (i) The Plan Ceiling Amount for the taxable year of the Participant, plus (ii) The Plan Ceiling Amount for any prior taxable year or years less the amount of Compensation deferred under the Plan for such prior taxable year or years. A prior taxable year shall be taken into account under subsection 4.2(b)(ii) only if; -11- SL01 0034845.07 May 15, 2014 (A) It began after December 31, 1978. (B) The Participant was eligible during all or any portion of the taxable year to participate in this Plan, and (C) The Compensation deferred (if any) under the Plan during the taxable year was subject to the Plan Ceiling Amount. If during the three (3) taxable years of the Participant prior to attaining Normal Retirement Age, a Participant increases his deferral as provided herein and does not have a Separation From Service on his Normal Retirement Age, in taxable years subsequent to attaining Normal Retirement Age, the Participant may continue to defer Compensation in an amount which does not exceed the Plan Ceiling Amount. Section 5. Book Accounts. 5.1 The Administrator shall open and maintain a separate bookkeeping account in the name of each Participant and shall credit to such Book Account that amount of Compensation which the Participant elects to defer. 5.2 As of the close of business on the Valuation Date, the Administrator shall determine the fair market value of each Investment of the Fund which shall reflect all additions to, income earned or loss realized or unrealized by each Investment since the last Valuation Date. The income, gains or losses reflected in such valuation shall be allocated among the Participants' Sub-Book Account in each Investment in the proportion which the value of each Participant's Sub-Book Account in the respective Investment at the end of the preceding Valuation Date (increased by additional amounts of deferred Compensation and -12- SL01 0034845.07 May 15, 2014 decreased by any distributions) bears to the aggregate value of all interest in such Investment as of the end of the preceding Valuation Date. A Participant's Book Account shall consist of the sum of all Sub-Book Accounts maintained for the Participant. 5.3 Subject to the provisions of Section 13.1, a Participant's interest in his Book Account shall be 100% vested. Section 6. Benefits. 6.1 Except as provided in Sections 6.8, 7, 8 benefits under this Plan shall be payable only in the event of Separation from Service. The benefit payable under the Plan shall be the amount credited to the Participant's Book Account determined as of the Settlement Date. 6.2 Subject to the provisions of Section 6.7 and in compliance with the provisions of Section 6.4 of this Plan, a Participant's Book Account shall be paid either in the form of (i) an annuity; (ii) in equal annual installments (not to exceed fifteen); (iii) in a single lump sum, or (iv) in such other form of distribution mutually agreed to by the distributee and the Plan Administrator. The Participant may express a preference for a form of distribution but the actual form of distribution shall be subject to the approval of the Administrator. Distribution of a Participant's Book Account shall commence sixty (60) days after a Participant has a Separation from Service for any reason. Subject to the provisions of Sections 6.5 and 6.6, a Participant or his Beneficiary, as the case may be, may request a benefit commencement date later than sixty (60) days after a Separation from Service. Such a request regarding form of payment and the benefit commencement date shall be made on a Benefit Settlement Request Form delivered to the Administrator not later than thirty (30) days after the Participant has a Separation from Service for any reason and before payment commences. If no request form is filed within such thirty (30) day period, the Participant's -13- SL01 0034845.07 May 15, 2014 Book Account shall be distributed ninety (90) days after the Participant has a Separation from Service in a single sum. 6.3 A Benefit Settlement Request Form which requests a postponed benefit commencement date as provided in Section 6.2 shall be irrevocable upon delivery to the Administrator. If a postponed benefit commencement date is requested, the Participant, or Former Participant, need not select the method of payment or if one is requested may change the method requested until the date thirty (30) days preceding the date upon which payments are to commence. Any form of benefit distribution requested by the Participant, or Former Participant under this Section 6.3 shall be indicated on a Benefit Settlement Request Form submitted to the Administrator and shall be subject to approval or disapproval of the Administrator. 6.4 Without regard to any other provision of this Plan, no Participant's request to receive benefits hereunder shall be effective unless pursuant to such request, benefits will commence no later than the Required Beginning Date. Further, all distributions under this Plan shall be made in accordance with Code Section 401(a)(9) and the Income Tax Regulations promulgated thereunder and the provisions of Code Section 401(a)(9) shall be deemed to override any distribution option in this Plan which is inconsistent therewith. 6.5 Subject to the provisions of Section 6.2, the Benefit Settlement Request Form shall permit a Participant or Former Participant (not a Beneficiary) to elect any one of the following optional forms of settlement in lieu of a single sum payment; a. Straight Life Annuity - a monthly annuity payable for as long as the recipient lives. -14- SL01 0034845.07 May 15, 2014 b. Period Certain and Life Annuity - a monthly annuity payable for as long as the recipient lives. If the recipient dies before receiving payments for the certain period (60, 120, 180 months as selected by the recipient in the Benefit Settlement Request Form) any remaining payments for the balance of the period certain shall be paid to the recipient's beneficiary in a lump sum. c. Installments - substantially equal annual installments (not to exceed fifteen), the first of which is payable on the benefit commencement date selected by the Participant and subsequent payments of which shall be made on each anniversary of such benefit commencement date until the full amount is distributed. Interest on any deferred payments shall be paid at an average rate equal to the ninety (90) day U.S. Treasury Bill rate determined on a daily weighted average basis during the period between installment payments. d. Such other form of distribution mutually agreed to by the Participant or Former Participant and the Plan Administrator. Any form of settlement requested and approved hereunder must be one that insures that as of the date on which distribution commences, (a) the projected amount payable to a Participant or Former Participant during his life expectancy exceeds two-thirds (2/3) of the maximum amount that would have been payable to the Participant or Former Participant if no provision were made for payment to a Beneficiary; and (b) any amount not distributed to the Participant during his life shall be distributed after the Participant's death in a form at least as rapidly as the payment method applicable during the life of the Participant. If a Participant or Former Participant dies before benefits have commenced, his Book Account shall either (i) be paid to -15- SL01 0034845.07 May 15, 2014 his Beneficiary in a single sum on a postponed payment date selected by the Beneficiary or (ii) in three (3) annual installments commencing on a date sixty (60) days after the Participant's death. 6.6 If a Participant or Former Participant dies after benefits commence and before the entire deferred amount is paid to the Participant, the entire amount deferred must be paid to the Beneficiary over; a. The life of the Beneficiary (or any shorter period) if the Beneficiary is the Participant's surviving spouse, or b. In a single sum if the Beneficiary is not the Participant's surviving spouse. In all events, the benefit payable to a spousal beneficiary shall commence on or before the later of (i) December 31 of the calendar year immediately following the calendar year in which the Participant died and (ii) December 31 of the calendar year in which the Participant would have attained age 70-1/2. The benefit payable to a nonspousal beneficiary shall commence no later than December 31 of the calendar year immediately following the calendar year which contains the Participant's date of death. 6.7 If the value of a Participant's Book Account on the Settlement Date is less than twenty-five hundred dollars ($2,500), the full amount shall be paid to the Participant or his Beneficiary in a single lump sum within sixty (60) days after the Participant has a Separation from Service. 6.8 If (a) the value of a Participant's Book Account does not exceed $3,500, (b) the Participant has not contributed any portion of his Compensation to the Plan within the two year period ending on the date of distribution, and (3) the Participant has not personally -16- SL01 0034845.07 May 15, 2014 received a distribution from the Trust Fund under this Section 6.8, the Participant may elect to receive his Book Account or the Administrator may distribute the amount in the Participant's Book Account without the Participant's consent. A separation from service shall not be required under this section. Section 7. Hardship. In the event a Participant incurs an unforeseeable emergency, the Participant may apply to the Assistant Administrator for a lump sum distribution of part or all of his Book Account as of the last Settlement Date. For purposes of this emergency withdrawal option, an unforeseeable emergency shall mean severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant or of a dependent (as defined in Section 152(a) of the Code) of the Participant, loss of the Participant's property due to casualty or 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 and circumstances, but an unforeseeable emergency shall not include the need to send a Participant's child to college or the desire to purchase a residence. A distribution of a Participant's Book Account shall not be permitted to the extent that such unforeseeable emergency may be relieved; (i) through reimbursement or compensation by insurance or otherwise; (ii) by liquidation of the Participant's assets, to the extent the liquidation of such assets would not itself cause severe financial hardship, or (iii) by cessation of deferrals under the Plan. -17- SL01 0034845.07 May 15, 2014 The final determination of whether a Participant has an unforeseeable emergency, for which a distribution is permitted under this Plan, shall be made by the Administrator. Section 8. Loans. 8.1 Upon proper application by a Participant, the Administrator, as administrator of the loan program, in accordance with a uniform and nondiscriminatory policy, shall direct the Trustee to make a loan or loans to such Participant. All loans shall comply with the following terms and conditions: (a) Loan Requirements (1) Loans shall be made available to all Participants on a reasonably equivalent basis. (2) Loans must be adequately secured and bear a reasonable rate of interest commensurate with the prevailing interest rate charged by persons in the business of lending money in St. Louis, Missouri which would be made under similar circumstances and as determined by the Administrator. (b) Loan Limits. No loan to any Participant shall be made to the extent that such loan when added to the outstanding balance of all other loans to the Participant would exceed the lesser of: (1) $50,000, reduced by the excess (if any) of the highest outstanding balance of loans during the one year period ending -18- SL01 0034845.07 May 15, 2014 on the day before the loan is made over the outstanding balance of the loans from the Plan on the date the loan is made, or (2) 1/2 the present value of the Participant's Book Account. For purposes of the above limitation, all loans from all Plans of the Employer are to be aggregated. Furthermore, any loan shall by its terms require that repayment (principal and interest) be amortized in level payments, not less frequently than quarterly, over a period not extending beyond five (5) years from the date of the loan, unless such loan is used to acquire a dwelling unit which within a reasonable time (determined at the time the loan is made) will be used as the principal residence of the Participant. (c) Repayment of Loans. Loans shall be repaid through payroll deductions. A Participant may repay the balance due on a loan or loans at any time in any amount. Upon a Participant's termination of employment, the entire loan balance shall become due and payable immediately and shall be offset against any distribution due to the Participant from his/her Book Account. (d) Security. Each loan shall be secured by an assignment of the Participant's Book Account in the Plan and by the Participant's collateral promissory note for the amount of the loan, including interest thereon, payable to the order of the Trustee. If the Participant's Book Account is deemed subject to the requirements of Sections 401(a)(11) and 417 of the Code or comparable provisions, a Participant must obtain the consent of his or her spouse (if any) to assign his Book Account balance as security for the loan. Spousal consent shall be obtained no earlier than the beginning of the 90-day period that ends on the date on which the loan is to be so secured. The consent must be in writing, must acknowledge the fact of the -19- SL01 0034845.07 May 15, 2014 loan, and must be witnessed by a Plan representative or a notary public. Such consent shall thereafter be binding with respect to the consenting spouse, or any subsequent spouse with respect to that loan. A new consent shall be required if the Book Account balance is used as security for renegotiation, extension, renewal or other revision of the loan. Notwithstanding the preceding paragraph, no consent need be obtained in the event the total amount assigned does not exceed $3,500 (or such other amount as prescribed by applicable law) or if the Participant has no spouse or the Participant's spouse cannot be located. In the latter event, the Participant must certify on a form provided by the Administrator that he has no spouse or that his spouse cannot be located in order to assign his accounts as security for a loan. If a valid spousal consent has been obtained in accordance with the above paragraph, then, notwithstanding any other provision of this Plan, the portion of the Participant's vested Book Account balance used as a security interest held by the Plan by reason of a loan outstanding to the Participant shall be taken into account for purposes of determining the amount of the Book Account balances payable at the time of death or distribution, but only if the reduction is used as repayment of the loan. If less than one-hundred percent (100%) of the Participant's vested Book Account balance (determined without regard to the preceding sentence) is payable to the Participant's surviving spouse, then the Book Account balance shall be adjusted by first reducing the vested Book Account balance by the amount of the security used as repayment of the loan, and then determining the benefit payable to the surviving spouse. (e) Minimum Loan. The minimum amount of any loan shall be $1,000.00 -20- SL01 0034845.07 May 15, 2014 (f) Order of Investment Liquidation. The funds necessary to provide a loan under this Section shall be obtained in accordance with rules established by the Administrator. (g) Investment of Loan Payments. The investment of loan repayments shall be made in accordance with rules established by the Administrator. (h) Loan Applications. Loans shall be made as of any Valuation Date or such other date as established by the Administrator. The Employer may establish rules regarding when a Participant must file a loan application in order to receive his loan as of such Valuation Date. (i) Loan Fees. A Participant will be charged a loan fee as specified by the Administrator. (j) Number of Loans Outstanding. Only one loan may be requested during any month. Only two loans may be outstanding at any time. 8.2 This provision shall become effective on the date established by the Administrator, but in no event prior to January 1, 1997. Section 9. Plan to Plan Transfers a. In the event a Participant has a Separation from Service and commences employment with another entity which maintains an Eligible Plan, Section 6 of this Plan shall -21- SL01 0034845.07 May 15, 2014 not apply and amount deferred by the Participant under this Plan shall automatically be transferred to the Transferee Eligible plan if; (i) the Participant has a Separation from Service with the Employer in order to accept employment with the entity described hereinabove; and (ii) the Participant (or Former Participant as the case may be) elects to participate in the Transferee Eligible Plan not later than thirty (30) days after the date on which he has a Separation from Service with the Employer. b. If a Participant elects to transfer his Book Account, or any portion thereof, to a Transferee Eligible Plan, he shall notify the Administrator in writing no later than the date on which he has a Separation of Service. Within thirty (30) days of the aforementioned date, the Participant (or Former Participant as the case may be) shall provide evidence of his participation in the Transferee Eligible Plan. If such evidence is satisfactory to the Administrator of this Plan, the Administrator shall transfer his Book Account (or any portion thereof as directed by the Participant) to the administrator of the Transferee Eligible Plan. c. This Plan shall accept transfers of amounts deferred by an Employee under another Eligible Plan, provided such amounts are received directly from the administrator of the other Eligible Plan and the deferred amount is transferred in cash or cash equivalents. -22- SL01 0034845.07 May 15, 2014 Section 10. Nonassignability The interest of any person in this Plan or in any distribution to be made under the Plan shall not be assignable either by voluntary or involuntary assignment or by operation of law, including, but not by way of limitation, execution, levy, garnishment, attachment, pledge, or in any other manner, but excluding devolution by death or transfer due to mental incompetency, and no right or interest of any person in the Plan or in a Book Account shall be liable for, or subject to, any obligation or liability of such person. Section 11. Plan Administration 11.1 The Plan shall be administered by a committee of four persons; The General Counsel, Secretary-Treasurer, the Director of Personnel and the Director of Administration of the Employer. The committee of four shall be referred to as the Administrator; a subcommittee consisting of the Director of Personnel and the Director of Administration shall be referred to as the Assistant Administrator. The Administrator shall act as the agent of the Employer in administering the Plan and shall be solely responsible for its operation and enforcement. All decisions of the Administrator shall be conclusive and binding on all persons. 11.2 The Administrator shall have such duties and powers as may be necessary to discharge its duties hereunder, including, by way of example but not by way of limitation, the following; (a) To construe and interpret the provisions of the Plan; (b) To decide all questions of eligibility and participation hereunder; -23- SL01 0034845.07 May 15, 2014 (c) To prescribe such rules and procedures as are consistent with the provisions of the Plan and as are deemed necessary and proper by the Administrator; (d) To prepare and distribute, in such manner as the Administrator determines to be appropriate, information explaining the Plan; (e) To receive from the Employer and from Participants such information as shall be necessary for the proper administration of the Plan; (f) To maintain and furnish to the Employer, upon request, such reports with respect to the Administration of the Plan as are reasonable and appropriate; (g) To file with any state or federal authorities or agencies such records and reports as may be required by law regarding the Plan; (h) To make recommendations to the Employer regarding the employment of agents, attorneys, accountants, consultants or other persons for such purposes as the Administrator considers necessary or desirable; (i) To review on an annual or periodic basis the performance of investment alternatives offered under the Plan; (j) To add or delete investment alternatives offered under the Plan; -24- SL01 0034845.07 May 15, 2014 (k) Make recommendations to the Employer regarding institution of legal action regarding matters pertaining to the Plan; (l) Maintain and be custodian of all records, including financial records, relating to the Plan or to the Plan Participants; and (m) To do all such acts, take all such action and exercise all such rights, although not specifically mentioned herein, as the Administrator may deem necessary or convenient to administer this Plan and to carry out the purposes of this Plan. 11.3 Any Employee who is a member of the administrative committee may participate in the Plan but may not participate in any discretionary action taken in connection with his participation. 11.4 The Administrator may contract with an agent or agents to implement the Plan and to perform some or all administrative services in connection therewith. All contracts for service shall be executed in the same manner as other contracts between the District and third parties. 11.5 The general administrative expenses shall be paid by the Employer. Any expenses incurred in connection with the selection of an Investment or an optional form of settlement under Section 6.5, however, shall be borne by the Participant or his Beneficiary, as the case may be. For purposes of this Section, general administrative expenses shall include by way of example but not by way of limitation, legal and accounting expenses. Section 12. Claims Procedures -25- SL01 0034845.07 May 15, 2014 a. If a Participant or his Beneficiary believes that he is entitled to a benefit under this Plan such Participant or Beneficiary shall file with the Assistant Administrator a written claim for benefit on such forms and with such documentation as the Assistant Administrator shall prescribe. b. The Assistant Administrator shall consider and decide any claim filed pursuant to (a), above, promptly upon receipt. A claim shall be allowed only to the extent determined by the Assistant Administrator. If such claim is denied, in part or in full, the Assistant Administrator shall notify the claimant in writing of such decision within 60 days after the receipt of the claim. Such notice shall advise the claimant, in language calculated to be understood by him, of the following; (i) the specific reason or reasons for the denial of the claim; (ii) the pertinent Plan provision or provisions on which the denial is based; (iii) a description of any additional material or information which will permit the claimant to perfect the claim, together with an explanation of why such material or information is necessary; and (iv) an explanation of the claim review procedure provided by (c), below. c. If a claimant receives notice that his claim for benefits has been denied in whole or in part, he or his duly authorized representative may, within 60 days after receipt of notice of such denial; -26- SL01 0034845.07 May 15, 2014 (i) Make written application for a review of the decision. Such application shall be made on a form specified by the Assistant Administrator and shall be delivered to the Assistant Administrator. (ii) Review documents in the possession of the Assistant Administrator which are pertinent to the decision under review. (iii) Submit, in writing, issues and comments on the decision under review. d. If review of a decision is requested pursuant to (c)(1), above, such review shall be made by the Administrator who shall review all relevant documents and other matters, including matters submitted by the claimant. The decision on review shall be made within 60 days after the receipt by the Assistant Administrator of the request for review, or within 60 days after the date on which the claimant submits written issues and comments pursuant to (c)(iii) above, whichever is later. The decision on review shall be in writing, shall include the specific reasons for the decision, including references to pertinent Plan provisions on which the decision is based, shall be written in a manner calculated to be understood by the claimant, and shall be final. Section 13. Plan Amendment & Termination 13.1 The Employer reserves the right to amend the Plan in whole or in part from time to time, by the enactment of an ordinance by its Board of Trustees and the execution of a formal amendment to the Plan, provided that any such amendment shall not cause the Plan to become disqualified under Section 457 of the Code or any other Section -27- SL01 0034845.07 May 15, 2014 thereof. No amendment shall have the effect of reducing or affecting the value of any Participant's Book Account or any Participant's rights which have accrued under the Plan prior to the amendment or termination of the Plan. The Employer intends to continue the Plan indefinitely but reserves the right to terminate it at any time. The Plan may be terminated by the enactment of an ordinance by the Employer's Board of Trustees and the execution of a formal amendment to the Plan. Section 14. Payment of Contributions 14.1 The Employer shall pay over to the Trustee the contributions made to it by the Participants of the Plan. 14.2 Payment of the Contributions to the Trustee shall be made by the Employer not later than three (3) business days after the end of the pay period to which the Contributions relate. 14.3 Payment of the Contribution shall be in the form of cash, stocks, bonds, notes or other marketable securities. Section 15. Trust Fund. The Trustee shall accept and receive all Contributions of cash, stock, bonds, notes, or marketable securities delivered to it from time to time by the Employer, if acceptable to the Trustee. Subject to the provisions of Section 3.5, the Trustee shall hold, invest, reinvest, manage and administer all such Contributions and the increment, increase, earnings and income thereof as a Trust Fund for the exclusive benefit of the Participants of the Plan. -28- SL01 0034845.07 May 15, 2014 Section 16 - Earnings of Trust Fund. All income and earnings of the Trust Fund shall be accumulated by the Trustee and held, invested and reinvested as part of the principal of said Trust Fund. No part of such income and earnings shall be applied otherwise than for the benefit of the Participants of the Plan, and their beneficiaries, named, or provided for, in the Plan. Section 17 - Acceptance of Contributions. The Trustee shall add to the principal of the Trust Fund, as originally constituted, all subsequent Contributions made by the Employer in accordance with the Plan, but the Trustee shall be under no duty to inquire as to the correctness of the amounts paid by the Employer, or the value of the property contributed, nor to bring proceedings or otherwise seek to enforce payment of Contributions from the Employer. Section 18 - Investment Powers of Trustee. Subject to the provisions of Section 3.5 above, the Trustee shall have the powers described in this section. The Trustee may, to the extent prudent, under all of the circumstances, retain part of the funds of the Trust Fund in a cash reserve or in time deposits, savings deposits or certificates of deposit so as to enable the Trustee to meet the liabilities payable under the Plan. The Trustee shall have full power and authority to manage and control the Trust Fund and to sell, exchange, lease (for terms extending beyond the termination of the Trust, or otherwise), grant options on, rent, mortgage, pledge, assign, transfer or otherwise dispose of all or any part thereof, upon such terms and conditions as the Trustee may see fit. The Trustee may invest and reinvest all or any part of the Trust Fund in such securities, domestic or foreign, including stocks, common or preferred, debentures, shares -29- SL01 0034845.07 May 15, 2014 or participation in any common trust fund, insurance company contracts, shares or participation, in any pooled investment fund issued by any investment company, insurance company, or by any other issuer, bonds, notes, securities or other property (real and/or personal), as the Trustee may, in the Trustee's absolute discretion, select, and the Trustee may make and change such investments from time to time, according to the Trustee's discretion. Section 19 - Trustee's Determination of Principal and Income. The Trustee shall have full power to determine, in computing the earnings of the Trust for the purpose of the determinations required by the Plan, whether any money or other property coming into the Trustee's hands, concerning which there may be any doubt, shall be considered as part of the principal or income of the Trust Fund, and to apportion between such principal and income any loss or expenditure in connection with the Trust, in such manner as the Trustee may deem just and equitable. Section 20 - Other Powers of Trustee. In addition to such other powers as are herein otherwise conferred upon the Trustee, the Trustee is authorized and empowered to the extent not inconsistent with Section 3.5 herein above: (a) To employ such agents and counsel as may be reasonably necessary in managing, protecting and administering the Trust, and to pay such agents and counsel reasonable compensation. Any legal counsel shall be of the Trustee's own selection and may be of counsel to the Trustee, in the Trustee's individual capacity, or of counsel to the Employer. -30- SL01 0034845.07 May 15, 2014 (b) To borrow money from any lender, upon such terms, for such periods of time, at such rates of interest, and upon the giving of such collateral, as the Trustee may determine. (c) To register any securities or any property held by the Trustee in the Trustee's name, or in the name of his nominee, with or without disclosure that the same are held in a fiduciary capacity, to take or keep the same unregistered, and to retain the same or any part thereof in such manner that title thereto will pass by delivery; provided, however, that on the books and records of the Trustee, such investments shall be shown to be part of the Trust Fund and no such registration or holding, as herein provided, shall relieve the Trustee of liability for the safe custody and proper disposition of such investments, in accordance with the terms and provisions hereof. (d) To vote any stocks, bonds or other securities of any company, or other issuer, at any time held in the Trust Fund, and to give general or special proxies or powers of attorney, with or without substitutions, with respect thereto; to consent to, participate in, and take any action in connection with, reorganizations; recapitalizations, consolidations, mergers, liquidations and similar transactions with respect to issuers of securities constituting assets of the Trust, and to receive and retain any securities resulting from any such transactions; to deposit the securities of any issuers in any voting trust or with any protective or like committee, or trustee, and to exercise any subscription rights, conversion, or other rights or privileges, with respect to any securities in the Trust Fund. (e) To adjust, compromise or otherwise settle any obligation or liability due to, or from the Trustee, as Trustee hereunder, including any claim that may be asserted for taxes under present or future laws, state or federal, or to enforce or contest the same by appropriate legal procedures; but the Trustee shall not be required to institute or continue litigation unless the Trustee is in possession of funds adequate for that purpose, or unless the -31- SL01 0034845.07 May 15, 2014 Trustee is indemnified to the Trustee's satisfaction by the Employer with respect to the Trustee's counsel fees and all other expenses, costs and liabilities to which, in the Trustee's judgment, the Trustee may be subjected by any such action; provided, however, that the Trustee shall have no power or authority to deviate from such directions as the Employer may give to the Trustee with respect to payment of money, either as to amount or the time or times of such payments, or as to the persons entitled thereto. Section 21 - Disbursements. Disbursements of the funds of this Trust shall be made by the Trustee only to, or for the benefit of, the Participants of the Plan, or their beneficiaries, and only at the time, in the amount, and in the manner prescribed by written instructions from the Employer, delivered by the Employer to the Trustee. The Trustee shall be under no obligation to check or verify the correctness of the instructions given to the Trustee by the Employer, the Trustee's only duty being to follow the directions of the Employer. Section 22 - Transfers to Other Trusts. Upon written instructions of the Employer delivered to the Trustee, the Trustee shall transfer funds held hereunder to any other trust, which is now or hereafter may be utilized by the Employer to fund benefits previously funded by this Trust. The Trustee shall be under no obligation to check or verify the correctness of the instructions given to the Trustee by the Employer, the Trustee's only liability being to follow the directions of the Employer. Section 23 - Authority of Trustee. The Trustee shall have exclusive authority and complete discretion with respect to the investment, management and control of the assets of the Trust. Notwithstanding the -32- SL01 0034845.07 May 15, 2014 foregoing, the Employer may appoint an investment manager who shall have the authority to direct the Trustee with respect to the management (including the manner in which to vote securities), acquisition or disposition of any assets in the Trust Fund. Any investment manager shall be either an investment advisor registered as such under the Investment Advisors Act of 1940 or a bank, as defined in that Act. Any investment manager shall certify in writing to the Trustee that it is qualified to act in such capacity under the preceding sentence, shall accept its appointment as an investment manager, shall acknowledge that it is a fiduciary under this Trust and the Plan, and shall undertake to perform the duties imposed on it under this Section. The Employer shall certify to the Trustee (a) that it has appointed the investment manager, and (b) that there has been duly delegated to the investment manager all of the powers and authorities required to be exercised by it under the Trust. The Trustee may continue to rely upon all certifications, agreements and undertakings under this Section unless otherwise modified in writing by the Employer or the Investment Manager as the case may be. Section 24 - Assets to be Maintained in the United States. The Trustee shall not permit the indicia of ownership of any of the assets of the Trust to be maintained at a location outside the jurisdiction of the district courts of the United States. Section 25 - Breach of Duty by Fiduciary Other than Trustee. The Employer shall indemnify the Trustee against all liabilities and claims (including reasonable attorney's fees and expenses in defending against such liabilities and claims) against the Trustee arising from any breach of fiduciary responsibility by a fiduciary other than the Trustee unless the Trustee knowingly participates in such breach, knowingly undertakes to conceal such breach, has actual knowledge of such breach or, through the -33- SL01 0034845.07 May 15, 2014 Trustee's negligence, has enabled such other fiduciary to commit a breach of the latter's fiduciary responsibilities. Section 26 - Reliance on Instructions. The Trustee shall not be obligated or required to determine whether any instructions issued to the Trustee by the Employer are, in fact, so issued in accordance with the terms of this Plan, or the powers and duties thereunder of the Employer, but may rely absolutely on written instructions signed by the Employer. Section 27 - Records. The Trustee shall keep accurate and detailed accounts of all investments, receipts and disbursements, and other transactions relating to the administration of the Trust Fund. The Trustee shall, within 60 days after the close of each Plan Year, render to the Employer an account of the Trustee's administration of the Trust for the Plan Year. Section 28 - Limitations on Claims. As between the Trustee and persons dealing with the Trustee in any manner regarding the Plan or the Trust, the claims of such persons shall be limited to the assets of the Trust, and the Trustee shall not be responsible for any claims in connection therewith. Section 29 - Reliance on Information from the Employer. The Trustee, and any expert assistant engaged by the Trustee, shall be fully protected in relying upon information furnished by the Employer which is required for the -34- SL01 0034845.07 May 15, 2014 purpose of the administration and operation of the Plan and the Trust created hereunder, and shall not be liable for any action taken, or omitted, in reliance on such information. Section 30 - Trustee Authorized to Act. No person dealing with the Trustee shall be required to make inquiry as to the authority of the Trustee to do any act which the Trustee may do hereunder; any such person shall be entitled, conclusively, to assume that the Trustee is properly authorized to do any act which he purports to do hereunder, and any such person shall be under no liability to any person, whomsoever, for any act done hereunder pursuant to the written direction of the Trustee. Any such person may conclusively assume that the Trustee has full power and authority to receive and give receipt for any money or property becoming due and payable to the Trustee, and no such person shall be bound to inquire as to the disposition or application of any money or property paid or delivered to the Trustee, or paid or delivered in accordance with the written direction of the Trustee. Section 31 - Termination. This Trust shall be irrevocable. In case of the termination of the Plan, then the assets of this Trust shall be distributed, as provided in said Plan, subject to any and all amendments to said Plan which may have theretofore become effective. In case of such termination, the Trustee shall liquidate the assets of the Trust and disburse the same to, or for the exclusive benefit of the Participants (or their Beneficiaries) in such Plan, in the manner contemplated in the Plan, but subject to the designation by the Employer of the particular individuals entitled to receive payment under the Plan and the amount of payments thereunder. In no event shall any part of the principal or income of the Trust be paid to, or for the benefit of, the Employer, except as provided under the Plan from time to time. -35- SL01 0034845.07 May 15, 2014 Section 32 - Resignation. The Trustee may resign at any time by giving sixty (60) days written notice to the Employer; provided that the Employer may accept such resignation at any time within such sixty (60) day period that the Employer may fix. Upon such resignation becoming effective, the Trustee shall perform all acts necessary to transfer the assets of this Trust to such successor Trustee, as the Employer shall appoint and designate. Section 33 - Removal of Trustee. The Employer may remove the Trustee at any time by giving sixty (60) days written notice to the Trustee. Upon such removal becoming effective, the Trustee shall perform all acts necessary to transfer the assets of this Trust to such successor Trustee as the Employer shall appoint and designate. Section 34 - Vacancies. In the event of any vacancy in the trusteeship of this Trust, at any time, whether by reason of the resignation of the then incumbent Trustee, the removal of the Trustee, or any other cause, the Employer shall designate and appoint a successor Trustee. Any such successor Trustee shall have all the powers herein conferred upon the original Trustee. Section 35 - Payment of Administration Expenses. The expenses of administration of this Trust shall be paid by the Employer. Section 36 - Payment of Taxes. -36- SL01 0034845.07 May 15, 2014 All taxes which may be imposed upon the Trust shall be considered as an expense of, and shall be paid from the Trust, and, until so paid, shall constitute a lien upon the assets of the Trust, without any right of repayment from, or recourse against, the Employer or the Trustee. Section 37 - Acceptance of Trust Provisions. The Trustee, by executing an Acceptance of Trusteeship shall be deemed to have accepted the foregoing terms and conditions and to have agreed to carry out the provisions thereof to be performed by the Trustee. Section 38 - General Provisions. 38.1 In construing the text of this Plan, the masculine shall include the feminine, and the singular shall include the plural and the plural the singular wherever the context shall plainly so require. 38.2 This Plan is intended to meet the requirements for qualification under Section 457 of the Code. Any modification or amendment to the Plan may be made by the Employer, retroactively if necessary, to establish and maintain such qualification. 38.3 Any reference herein to any section of the Code or to any other statute or law shall be deemed to include any successor statute or law of similar import. 38.4 This Plan shall be governed and construed in accordance with the Code and, to the extent they are not inconsistent therewith, the laws of the State of Missouri. -37- SL01 0034845.07 May 15, 2014 Section Three. By the enactment of this Ordinance, the Trustees of The Metropolitan St. Louis Sewer District hereby accept their appointments as Trustees of The Metropolitan St. Louis Sewer District Deferred Compensation Plan pursuant to Section 2.27 of said Plan. Section Four: The amendments set out in this ordinance shall be effective on August 20, 1996. -38- SL01 0034845.07 May 15, 2014 The foregoing Ordinance was adopted September 12, 1996.