Resolution 142-1997
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RESOLUTION NO. 142 -1997
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WHEREAS, the undersigned Employer, Monroe County, Florida~.ls'-'he o~r oe
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one or more life insurance policies issued to it by Commonwealth Life Insurance
A RESOLUTION OF THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA.
AUTHORIZING THE ESTABLISHMENT OF CUSTODIAL
ACCOUNT AND LIFE INSURANCE TRANSFER
AUTHORIZATION
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Company, Kentucky Commonwealth Life Insurance Company, Peoples Security Life
Insurance Company, or Providian Life and Health Insurance Company (the "Policies")
in connection with the deferred compensation plan it maintains for its employees (the
"Plan") pursuant to Section 457 of the Internal Revenue Code of 1986, as amended (the
"Code"); and
WHEREAS, as a result of an amendment to the Code, all assets and income of
the Plan must be held in a trust, custodial account or annuity contract; and
WHEREAS, the Plan has been amended to reflect the changes required by the
amendment to the Code; and
WHEREAS, the Employer desires to adopt the Code Custodial Account (the
"Custodial Account") to hold assets, other than annuity contracts, which will provide
benefits for the participants and beneficiaries; and
WHEREAS, as a result of the amendment ot the Code, the Employer desires to
transfer ownership of the Policies to Bank One Trust Company, N.A. (the "Custodian") for
the exclusive benefit of the Plan's participants and beneficiaries; NOW THEREFORE
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE
COUNTY, FLORIDA that
Section 1.
The Employer, Monroe County, Florida, hereby accepts the Code
Custodial Account Agreement. adopts the Custodial Account. a copy of which is
attached and incorporated as Exhibit A, authorizes transfers of ownership to the Policies
to the Custodian. and designates the Custodian as the beneficiary to the Policies. The
Employer's address and contact person are:
Monroe County Board of County Commissioners
Sandra Carlile, Finance Director
P.O. Box 1980
Key West. FL 33041-1980
PASSED AND ADOPTED by the Board of County Commissioners of Monroe
County, Florida, at a regular meeting of the Board held on the 20th day of
May
. 1997.
Mayor Douglass
Mayor Pro Tem London
Commissioner Harvey
Commissioner Freeman
Commissioner Reich
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BY~ .
Depu ClerK
By
ATTEST: DANNY L. KOLHAGE, CLERK
B
aa/resord2/insuranc
ESTABLISHMENT OF CUSTODIAL ACCOUNT AND LIFE INSURANCE
TRANSFER AUTHORIZATION
WHEREAS, the undersigned Employer is the owner of one or more life insurance
policies issued to it by Commonwealth Life Insurance Company, Kentucky
Commonwealth Life Insurance Company, Peoples Security Life Insurance Company, or
Providian Life and Health Insurance Company (the "Policies") in connection with the
deferred compensation plan it maintains for its employees (the "Plan") pursuant to
Section 457 of the Internal Revenue Code of 1986, as amended (the "Code"); and
WHEREAS, as a result of an amendment to the Code, all assets and income of the Plan
must be held in a trust, custodial account or annuity contract; and
WHEREAS, the Plan has been amended to reflect the changes required by the
amendment to the Code; and
WHEREAS, the Employer desires to adopt the Code Custodial Account (the "Custodial
Account") to hold assets, other than annuity contracts, which will provide benefits for the
participants and beneficiaries; and
WHEREAS, as a result of the amendment to the Code, the Employer desires to transfer
ownership of the Policies to Bank One Trust Company, N.A. (the "Custodian") for the
exclusive benefit of the Plan's participants and beneficiaries;
NOW THEREFORE, the undersigned Employer hereby accepts the Code Custodial
Account Agreement, adopts the Custodial Account, authorizes transfer of ownership to
the Policies to the Custodian, and designates the Custodian as the beneficiary to the
Policies. MONROE COUNTY BOARD OF LOUNTY COAA
SANDRA CARLILE
FINANCE OIRECTOR
PO BOX 1980
**
KEY WEST, FL
EMPLOYER:
330411980
BY:
TITLE:
DATE:
DC-2948-A
EXHIBIT "A"
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NATIONAL ASSOCIATION OF COUNTIES
DEFERRED COMPENSATION PROGRAM
THE DEFERRED COMPENSATION PLAN FOR PUBLIC EMPLOYEES
AMENDMENT.1 TO PLAN DOCUMENT
WHEREAS EMPLOYER executed the above referenced Plan Document; and
WHEREAS, effective January 1, 1997, EMPLOYER desires to amend the Plan
Document as follows:
1. The first sentence of Article I, Section 1.01 (n) is hereby deleted and replaced
with the following:
SEPARATION FROM SERVICE means Separation From Service as used in IRC
Section 402 (d)(4)(A)(iii), and on account of the PARTICIPANT'S death or
retirement.
2. ARTICLE II, Section 2.04 is hereby deleted and replaced with the following:
2.04. Except as provided in Section 2.05, the maximum deferred amount under
the PLAN for the PARTICIPANfS taxable year shall not exceed the lesser of (a)
$7,500 (as adjusted by the Secretary of the Treasury) or (b) 33 1/3% of the
PARTICIPANfS Includible Compensation as provided in IRC Section 457.
3. ARTICLE II, Section 2.06 is amended by replacing "402(a)(8)" with "402(e)(3)"
and by adding, in the third line "or (k)" following "402(h)(1)(B)".
4. Article II is hereby amended by the addition of the following Section:
2.07 Notwithstanding the precedLng provisions of Article II, a P ARTICIP ANT who
is entitled to reemployment pursuant to the terms of the Uniformed Services
Employment and Reemployment Act of 1994 (USERRA) may defer an additional
amount under the PLAN as provided in that act for the years of his or her service
in the uniformed services (as defined in USERRA). Any such deferrals will not be
subject to the limits set forth above in the year in which deferred, but will be
subject to the limits for the year to which such deferrals relate.
5. ARTICLE VII, Section 7.02 is hereby deleted and replaced with the following:
7.02. The EMPLOYER shall use the PARTICIPANfS or Beneficiary's investment
specifications so as to determine the value of the deferred account maintained
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with respect to the P ARTICIP ANT as if the deferred amounts had been invested
according to such specifications; provided, however, that only upon approval
from EMPLOYER and Administrator may a PARTICIPANT allocate an amount
greater than 25% of the total deferrals of the P ARTICIP ANT to a life insurance
option.
6. ARTICLE VII, Section 7.04 is hereby deleted and replaced with the following:
7.04. All assets of the PLAN, including all deferred amounts, property and rights
purchased with deferred amounts, and all income attributable to such deferred
amounts, property or rights, shall (until made available to the PARTICIPANT or
Beneficiary) be held in a trust, custodial account or annuity contract described
in IRC Section 457(g) for the exclusive benefit of the PARTICIPANTS and their
beneficiaries.
7. ARTICLE VIII, Section 8.01 is hereby deleted and replaced with the following:
8.01. Commencement of Distributions: The PARTICIPANT may elect the time at
which distributions under the PLAN are to commence by designating the month
and year during which the first distribution is to be made. The earliest distribution
commencement date that may be elected by the P ARTICIP ANT shall be the
earlier of:
(a) thirty-one (31) days after Administrator is notified of
PARTICIPANT'S separation from service or the date the PARTICIPANT
separates from service, whichever is later; or
(b) the date on which the PARTICIPANT attains age 70 1/2 or
terminates deferrals under this PLAN, whichever is later.
At least thirty (30) days prior to the date on which a P ARTICIP ANT is eligible for
benefits to commence under the PLAN, the EMPLOYER shall notify the
ADMINISTRATOR in writing, mailed to the ADMINISTRATOR'S Home Office, of the
PARTICIPANTS eligibility.
The P ARTICIP ANT shall make such election no later than the earlier of:
(a) thirty (30) days following the date Administrator is notified of
PARTICIPANT'S separation from Service, or
(b) thirty (30) days following attainment of age 70.
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Benefits payable to the P ARTICIP ANT will be the equivalent of the total benefits
that would have been created had the deferred amounts been invested as
specified by the PARTICIPANT.
The date elected for commencement of distributions (lithe E/ected
Commencement Date") shall be not later than the Mandatory
Commencement Date, which shall be the later of:
(a) April 1 of the calendar year following the calendar year in
which the P ARTICIP ANT attains age 70 1/2: or
(b) April 1 of the calendar year following the calendar year in
which the PARTICIPANT separates from service with the EMPLOYER.
The Elected Commencement Date may be postponed, once, following the
PARTICIPANT's separation from service, if the PARTICIPANT files an election
designating a new date for benefits to begin, prior to the original Elected
Commencement Date. Failure to file an election with the Administrator within
the appropriate time period will result in the Administrator beginning distributions
one hundred and eighty (180) days following the date the PARTICIPANT
separated from service or the date the Administrator is notified of PARTICIPANT'S
separation from service, whichever is later.
8. ARTICLE VIII, is hereby amended by the addition of the following Section:
8.05 In service distribution - $3,500 or less: If the total amount payable to a
P ART/CIP ANT under the PLAN is $3,500 or less, the P ARTICIP ANT may elect to
receive such amount before separation of service (or the PLAN may distribute
such amount without the P ARTICIP ANfS consent) if -
(a) no amount has been deferred under the PLAN with respect to
such P ARTICIP ANT during the two year period ending on the date
of distribution, and - ~ -
(b) there has been no prior distribution under the PLAN to such
PARTICIPANT to which this Section applied.
9. ARTICLE X is hereby amended by the addition of the following Section:
10.07 All assets of the Plan, including all deferred amounts, property and rights
purchased with deferred amounts, and all income attributable to such deferred
amounts, property or rights, other than assets held in annuity contracts, will be
held in a custodial account described in IRC Section 457(g). Such amounts will
be held in a common fund with the assets of other Section 457 Plans. Such
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custodial account shall be held by the custodian thereof for the exclusive
benefit of the P ARTICIP ANTS and Beneficiaries of this and other Section 457 Plans
and the assets may not be diverted to any other use. The Administrator shall be
the agent of the EMPLOYER for purposes of providing direction to the custodian
of the custodial account from time to time as to the investment of the funds
held in the account, the transfer of assets to or from the account and all other
matters. A copy of the Section 457 Custodial Account Agreement which
describes the duties of the custodian is attached hereto as Exhibit A and is
incorporated herein by reference.
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