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~e$t1lutia1t af tl¡e 1ßaraugl¡ af QImtl'ret, ;N. YJ.
#05-349
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No.
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ADOPTING CHANGES TO AN EXISTING DEFERRED COMPENSATION PLAN
PURSUANT TO THE JOB CREATION AND WORKER ASSISTANCE ACT OF 2002
,
INTERNAL REVENUE CODE SECTION 457 REGULATIONS (INCLUDING CERTAIN
PROPOSED REVISIONS), INTERNAL REVENUE SERVICE REVENUE PROCEDURE
2004-56, AND INTERNAL REVENUE SERVICE REVENUE PROCEDURE 2004-12
Date of Adoption December 1, 2005
WHEREAS, the Borough of Carteret (hereinafter referred to as the "Employer") by resolution
adopted a Deferred Compensation Plan (hereinafter referred to as the "Plan") effective January I,
2006, for the purpose of making available to eligible employees the accrual of tax benefits under
a Section 457 Deferred Compensation Plan; and
WHEREAS, the Employer by resolution retained The Variable Annuity Life Insurance Company
("V ALIC") as the contractor under the Deferred Compensation Plan and executed a Service
Agreement with said contractor; and
WHEREAS, the Job Creation and Worker Assistance Act of 2002 amended Section 457 of the
Internal Revenue Code (the "Code"); and
WHEREAS, the Internal Revenue Service ("IRS") issued final Code Section 457 regulations on
July 11,2003 and proposed Code Section 415 regulations issued May 31,2005 that modified the
Code Section 457 regulations; and
WHEREAS, the IRS has issued model amendments (Revenue Procedure 2004-56) and guidance
regarding rollover contributions to ehgible retirement plans (Revenue Procedure 2004-12) that
apply to Section 457 Plans; and
WHEREAS, the IRS has set a deadhne of December 31, 2005, for State and local governmental
Section 457(b) plan sponsors to adopt or amend their plans to conform with the Code,
regulations, and interpretative guidance; and
WHEREAS, the Employer desires its Plan to conform with the changes in the Code, regulations,
and interpretative guidance; and
WHEREAS, the Employer desires to adopt an amended and restated Plan that conforms with the
changes in the Code, regulations, and interpretative guidance; and
WHEREAS, such amended and restated Plan sha1l Supersede the previously adopted Plan;
NOW, THEREFORE, BE IT RESOLVED that the Employer does hereby adopt the amended
and restated Plan prepared by V ALIC and assigned Plan Document identifier 55-PD_ V ALIC-
110305 by the Director of the Division of Local Governmental Services.
BE IT FURTHER RESOL VED that a certified copy of this resolution sha1l be forwarded to the
Director of the Division of Local Governmental Services.
Adopted this 1 ,t day of December, 2005
and certified as a true copy of the
original on December 2,2005.
KATHLEEN M. BARNEY, RMC/CMC
Municipal Clerk
COUNCILMAN YES
BELLINO X
DIAZ X
KRUM X
RECORD OF COUNCIL VOTE
NO NV A.B. COU1'iCILMAN
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' YES NO l\V A.H'--I
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x - Indicate Vote
AB - Absent
NY - Not Voting
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