Item O3
...
Revised 2/95
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: April 19-20. 2000
Bulk Item: Yes [8J No D
Division: County Administrator
Department: County Administrator
AGENDA ITEM WORDING: Approval of resolution allowinQ The Variable Annuity Life
Insurance Company Nalic), an alternative provider of a Qualified deferred compensation
plan. to offer their plan to county employees and approval of the necessary documents
to accomplish same.
ITEM BACKGROUND: The Employee Relations Committee has reQuested additional
investment options to PEBSCO for several years. We contacted 62 providers of
Deferred Compensation Plans and had responses from six providers.
PREVIOUS RELEVANT BOCC ACTION: Approval of Ordinance 037-1998 on the 12th
day of November 1998, allowinc the County Administrator to necotiate with providers of
deferred compensation plans.
STAFF RECOMMENDATION: Approval
TOTAL COST: None
BUDGETED: Yes D No D
COST TO COUNTY: Minimal administrative assistance for scheduling locations for Valic
to meeting with employees and accounting for participant contribution.
AMOUNT PER MONTH
YEAR
APPROVED BY: COUNTY ATTY D OMB/PURCHASING D RISK MANAGEMENT D
REVENUE PRODUCING: No XX
DIVISION DIRECTOR APPROVA~~ - :..../~?O 0..,
James L. Roberts
DOCUMENTATION: INCLUDED: x TO FOLLOW: D NOT REQUIRED: D
DISPOSITION:
AGENDA ITEM #:
1,03
...
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract #
Contract with:The Variable Annuity Life Effective Date: When executed
Insurance Company. (Valic)
Expiration Date:None
Contract Purpose/Description:To provide deferred compensation to county employees in
compliance with section 457b of the Internal Revenue Code of 1986. as amended.
Attached: Administrative Services Agreement: Employer Appointment of Agent &
Amendment to Deferred Compensation Plan (Governmental Employer).and Portfolio Director
Plus Group Master Application
Contract Manager:Sheila A. Barker
(Name)
~P*,
4462
(Ext. )
(Department)
HR
for BOCC meeting on April 19-20 2000
Agenda Deadline: Anril 5 2000
CONTRACT COSTS
Total Dollar Value of Contract: $Nothing to Current Year Portion: $
County
Budgeted? YesD No C8J Account Codes: _-_-_-_
Grant: $
County Match: $
- - -
----
- - -
----
- - -
----
ADDITIONAL COSTS
Estimated Ongoing Costs: $Minimal/yr For: Administrative services for scheduling
location for Valic to meet with employees and
accounting for participant contribution.
(Not included in dollar value above) (el!:. maintenance, utilities, ianitorial, salaries, etc.)
CONTRACT REVIEW
Date In
Division Director .,;~/,..,
wanagement 4/3 \ 0 (:)
O.M.B./P~ing 4/31 tJO
County Attorney 3/,3//00
Changes
Needed ~
YesDN~ ---L -~ --
YesDNoIT 0,. L)~ ~~a""","
YesDNo~ <z?r--0- ~i{>tVL
Yes~D ~/k:I--
Comments:
Date Out
:1/3-/.,
'+/3 \00
V/iJD
V}JjPV
OMB Form Revised 9/11195 MCP #2
~
APR-04-00 15,32 FROM,MONROE COUNTY ATTY OFFICE 10,3052823518
PAGE
1/1
Board of County Commissioners
RESOLUTION NO. -:000
A RESOLUTION APPROVING TIlE VARIABLE ANNUITY WE INSVRANCE COMPANY (VALle).
AN ALTERNATIVE PROVIDER OF A QVAUFIED DEFERRED COMPENSATION PLAN. TO
OFFER THEm PLAN TO COUNTY EMPLOYEES.
WHEREAS, the MOJltOt County Board of COWlty Commissionen &idted the County Administrator the
right to neioriate with providers of deferred compensation plans by passage of ()rdinance No. 03 7-1998,
WHEREAS, the County Administrator bas selected a provider who$e pIan is qualified uncler section
4S7(b) ofth.e Internal Revenue Code of 1986, as amended. Said section provides for the deferral of Income for
income tax PUfPOses until the income is actually receiVed by the participant, but is not deferred for social securiry
coveraGe.
WHEREAS, the Monroe County Board of County Commissioners grant approval to sign the necessary
documents to allow Valle to become a deferred compenSltion provider to Mtinroe County Employees. This
resolution shall become effectiv~ when said documentS are tully executed.
PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a
reiU!ar meeting of said Board held on the 191& day of April, 2000.
Mayor Shirley Freeman
<":O!lUmSS10ner Wi1he1ntiDa Harvey
Commissioner Gecnp NellIent
COmmissioner Mary Kay KeJdJ
Commissioner Nora Williams
(S~L)
ATTEST: Danny L. KOlbage, Clerk
COMMISSIONERS
BOARD OF COUNTY
OF MONROE COUNTY, FLORIDA
By:
(DepUtY Clerk)
(Mayor)
...
.......,-
,
.,
,
\.
Form 2678
(Rev. June 1997)
Department of the Treasury -Internal Revenue Service
Employer Appointment of Agent
Under Section 3504 of the Internal Revenue Code
(For use by employers or payers)
, OMS Number
1545-0748
1. To
Director
Am::: 1" of n
Service Center
Instructions
Employer or Payer: Please complete
this form and give it to the agent.
Agent: Please attach a letter request-
ing authority to do either all that is
required of the employer for wages you
pay on the employer's behalf or all that is
required of the payer for requirements of
backup withholding. (See applicable
Revenue Procedures 70-6 or 84-33.)
Forward both the letter of request and
Form 2678 to the Director of the Internal
Revenue Service Center where you file
your returns. (See reverse side for
addresses.)
3. Employer's or Payer's address (Number and street. city. town or post office. State
and ZIP code) 5/00 {l~ /2-l:::>,
J<l?1 we>r FL ~50<! 0
/
Note: Rev. Proc. 70-6 is available in Publication 1271 and Rev. Proc. 84-33 is available in
Publication 1272,
2. Employer's or Payer's name
/Jt ())Jf(Ot c1Ju tv ~1-
4. Employer identification m6{ler
S"Cj- 0000 7'19
5. Agent's name
Variable Annuity Life Insurance Co.
7. Agent's employer identification number
74-1625348
8. Effective for (Check the box or boxes that apply)
[K] Employment taxes (Rev. Proc. 70-6)
D Backup withholding (Rev. Proc. 84-33)
Under section 3504 of the Internal Revenue Code,
please authorize this agent to do all that is required
under (Check the one(s) that apply)
D Chapter 21 (FICA)
D Chapter 22 (Railroad Retirement)
[iJ Chapter 24-
[Xl Withholding and/or
D Backup withholding
D Chapter 25 (General Provisions) of Subtitle C
The agent named above has been appointed either
to pay wages for employers and/or report and
deposit backup withholding amounts for payers.
This appointment is effective on the date shown
in Item 10.
It is understood that the agent and the employer or
payer are subject to all provisions of law and
regulations (including penalties) which apply to
employers or payers.
6. Agent's address (Number and street, city, town or post office, State and ZIP code)
P.O. Box 3206
Houston, TX 77253-3206
9. If filing under Rev, Proc.
70-6, does this apply to
all employees?
liJ Yes D No
Signature of employer or payer
10. Effective date of appointment by
employer or payer
if /2c/r0
Date
x
Title of signing official (Indicate whether the person signing is an owner,
partner, member of firm, fiduciary, or a corporate officer.)
For Internal Revenue Service Use Only
Effective date granted
by IRS ~
-- For the Paperwork Reduction Act Notice, please see the back of this form,
Catalog Number 187700
Form 2678 (Rev. 6-97)
...
\
Paperwork Reduction Act Notice
We ask for this information to carry out the Internal Revenue laws of the United States. We need it to
ensure that taxpayers are complying with these laws and to allow us to figure and collect the right
amount of tax, You are required to give us this information. The time needed to complete this form will
vary depending on individual circumstances. The estimated average time is: 30 minutes. If you have
comments concerning the accuracy of this time estimate or suggestions for making this form more
simple, we would be happy to hear from you. You can write to the Tax Form Committee, We~:ern Area
Distribution Center, Rancho Cordova, CA 95743-0001. DO NOT send this form to this addre~5. Instead,
send it to the Director of the Internal Revenue Service Center where you file your returns.
File with the
Internal Revenue
Service Center at:
Holtsville, NY 00501
Andover, MA 05501
Philadelphia, PA 19255
Atlanta, GA 39901
Cincinnati, OH 45999
Austin, TX 73301
Ogden, UT 84201
Kansas City, MO 64999
Fresno, CA 93888
Memphis, TN 37501
Form 2678 (Rev 6-97)
\
.,.
5YALIC
* An American Gcncml G.)mp:.my
ADMINISTRATIVE SERVICES AGREEMENT
This Agreement is made and entered into by and between 'ON~~If/T
(the "Employer") and The Variable Annuity Life Insurance Company ("V ALIC' , a Texas corporation.
on this _ day of ').ao-:o
ARTICLE I - PURPOSE
The Employer maintains a deferred compensation plan (the "Plan"). In the interest of economy and efficiency. the
Employer deems it desirable to contract for administrative services pertaining to accounting for deferrals. disburse-
ments of funds, proper reporting to participants and the Internal Revenue Service. and withholding of taxes. if applica-
ble. Therefore. the Employer designates V ALIC its agent to perform the services outlined in this agreement and
deposit income tax amounts as required by law. V ALIC's undertaking to provide administrative services hereunder is
limited to those amounts of deferred compensation under the Plan that the Employer has invested in annuity contracts
issued by V ALIC.
ARTICLE II - DEFINITIONS
As used in this agreement. the following definitions shall apply unless the context indicates otherwise:
2.1 Agent - The Variable Annuity Life Insurance Company ("V ALIC").
2.2 Annuity Contract - The group or individual annuity contract between the Employer and V ALIC.
2.3 Employer - 4/t)A/I4::IlTCeJUN72!-
Employer Name
5(00 ~e-I1-O,
Employer Address
f~
We;~ Ft.--
,
2.4 Participant - An employee or independent contractor of the Employer electing to participate in the Plan.
2.5 Plan - The -rJ1 OJ{ R.a:;;; ~ __ Deferred Compensation Plan.
Name of Plan ~
(check.one)elow):
a. --.:::-" a 457(b) or "eligible" deferred compensation plan described under section 457 of the Internal
Revenue Code of 1986, as amended.
b._ a 457(f) or "ineligible" deferred compensation plan sponsored by a tax exempt or
governmental organization.
c. a non-qualified (top hat) deferred compensation plan sponsored by a for-profit organization.
ARTICLE III - RESPONSIBILITIES OF EMPLOYER
3.1 The Employer shall complete and sign all forms necessary for V ALIC's appointment as agent with the
Internal Revenue Service. or where applicable, those forms that release V ALIC of said appointment.
3.2 The Employer shall notify V ALIC in writing of all Participant information requested by V ALIC. including.
but not limited to, age. social security number and beneficiary information.
3.3 The Employer shall direct V ALIC to make benefit payments under the Plan in accordance with the annuity
option specified by the Employer and shall supply V ALIC with the amount of the account to be distributed.
3.4 The Employer shall be responsible for approval of all requests for unforeseeable emergency withdrawals
under the Plan and direct V ALIC to make approved disbursements in amounts specified by the Employer.
PBINPR/PR ) 194
VA- 7 J3 VER 5196
'4
,
,
5VALIC
* An AmcnCi.l1l Gcncfi.tl Comri.UW
ARTICLE IV - VALIC RESPONSIBILITIES
4.]
4.2
V ALIC shall furnish a Notice of Receipt of Premium to Employer within 7 days of receiving funds.
V ALIC shall furnish quarterly confirmation statements of accounts showing activity for the period and the
total value of each Participant's account(s) to (check one below):
V Participants; or
a.
b.
the Emp]oyer.
4.3 V ALIC shall compute and deduct income taxes required by law to be withheld for all distributions.
(check one ~):
a. V Yes. This option is only available if you checked 2.5(a). (proceed to 4.4)
b.
No (proceed to Article VI)
Only for Required Distributions (complete 4.6 and proceed to Article VI/)
c.
4.4 V ALIC shall issue the disbursements in accordance with the provisions of the Annuity Contract and the Plan
at the direction of and in amounts specified by the Emp]oyer. Such disbursements shall be made payable and mailed to
participants. This does not apply if 4.3(b) was checked.
4.5 Disbursements shall be made from the account maintained by V ALIC on behalf of the Emp]oyer in accor-
dance with the terms of the Annuity Contract and the Plan, provided, however, that if the Employer terminates the
Annuity Contract, V ALIC shall be obligated to make disbursements only to the extent that funds are still available in
the account of the Employer.
4.6 V ALIC shall compute and deduct income taxes required by law to be withheld from distributions from the
Plan as may be specified below by the Employer. A report of such withheld taxes will be forwarded by V ALIC to the
Internal Revenue ~ervice within the time prescribed by law. This only applies if you checked 2.5(a).
a. / Federal income taxes
(Specify one only):
wage bracket method for all distributions.
/
b. ,lor
flat 28% rate for all distributions.
wage bracket method for required distributions only.
flat 28% rate for required distributions only.
fJ-/J/J /..., C--fl- 6 L. G-
State income taxes
(Specify one only):
wage bracket method for all distributions.
current percentage rate specified by state law for all distributions.
wage bracket method for required distributions only.
current percentage rate specified by state law for required distributions only.
Employer agrees to furnish V ALIC a properly completed Withholding Allowance Certificate (Form W-4) for
each Participant receiving a disbursement subject to the wage bracket method of withholding. V ALIC will not
withhold Federal income tax for any employee who claims an exemption from withholding on Form W-4 by
indicating no tax liability for the preceding year and none expected for the current year.
PRNPRIPR 11~4
VA-1P VER ~I%
2
4.7 V ALIC shall furnish to each Participant tax reporting formes) required by the applicable taxing authority
including a statement of gross amounts paid to the Participant and the amount of federal, state and local income tax
withheld by V ALIC, if any.
4.8 V ALIC shall furnish to the Employer, if applicable, annual and semi-annual reports for The Variable Annuity
Life Insurance Company Separate Account(s) for distribution to Participants.
4.9 V ALIC shall establish and maintain records of notifications from Employer concerning Participants who are
to receive disbursements, gross payments under the Agreement, amounts of federal, state and local income withheld by
V ALIC on behalf of the Employer and reports of such income and deposits filed with the appropriate governmental
agencies by V ALIC on behalf of the Employer.
ARTICLE V - MISCELLANEOUS
5.1 Term. This Agreement shall become effective immediately upon execution and shall remain in force until ter-
minated by either party as provided below.
5.2 Termination. This Agreement may be terminated by either party upon sixty (60) days written notice to the
other party of the intent to terminate. Upon any such termination, Agent shall deliver to the Employer all records and
reports required by this Agreement.
5.3 Information. V ALIC relies on the information provided to it by the Employer or participant, and V ALIC will
not be responsible for claims resulting from the use by V ALIC of any incorrect or misleading information provided to
it by the Employer or participant.
5.4 Assignment. This Agreement may not be assigned without the written consent of the other party.
5.5 Amendment. The parties may amend this Agreement only in writing. Any such amendment must be approved
by the President or a Vice President of Agent and a person authorized to act on behalf of Employer.
5.6 Notice. Any notice provided for herein shall be in writing and shall be deemed to have been given when
received by personal delivery or United States mail addressed to the Employer at the address given in section 2.3 or to
V ALIC at the address below:
Customer Service
The Variable Annuity Life Insurance Company
2929 Allen Parkway .
Houston, TX 77019
5.7 Governing Law. The laws of the state of Texas shall govern the rights and obligations of the parties under this
Agreement.
5.8 Entire Agreement. This Agreement and any written amendments hereto constitute the entire agreement of the
parties. This Agreement shall supersede all previous communications, representations or agreements, either oral or
written, between the parties.
5.9 No Cost to Emplover. The services rendered by V ALIC pursuant to this Agreement shall be performed with-
out additional cost to the Employer other than administrative and sales charges provided for in the Annuity Contract.
PB/NPRlPR 11'14
VA-713 VER 5/96
3
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5VALIC
* An AmcriCi.Ul Gcncml Cumpany
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed to be effective as of the date hereinabove.
EMPLOYER:
Name
By:
Signature
Name and Tille
HOME OFFICE:
BY
THE VARIABLE ANNUITY LIFE :UZ
INSURANCE COMPANY /H.T
By:
ARTICLE VI - EMPLOYER NOTICE OF WITHHOLDING
(Signature required ifitem 4.3b was selected)
Notice is hereby given by the Employer that all disbursements under the above referenced Plan shall be made by
V ALIC to Employer in accordance with the annuity contract(s) entered into between V ALIC and the Employer under
the Plan in such amounts and at such times as Employer specifies in writing to V ALIC. V ALIC is hereby released
from the responsibility, if any, of withholding federal and state income taxes from all disbursements made to Employer
under the above referenced Plan.
EMPLOYER:
~')t.~
N"V X
BY:~ X r
ARTICLE VII - EMPLOYER NOTICE OF WITHHOLDING
(Signature required ifitem 4.3c was selected)
Notice is hereby given by the Employer that all disbursements under the above referenced Plan shall be made by
V ALIC to Employer in accordance with the annuity contract(s) entered into between V ALIC and the Employer under
the Plan in such amounts and at such times as Employer specifies in writing to V ALIC. V ALIC is hereby released
from the responsibility, if any, of withholding federal and state income taxes from in-service and lump sum termination
disbursements made to Employer under the above referenced Plan. V ALIC shall be responsible for withholding fed-
eral and state income taxes from required distributions as outlined in section 4.5 of the agreement.
EMPLOYER:
_f){)< )c )t
BY:~X ~ ~
PBINPRlPR 1/94
VA-7 L\ VER 5196
4
...
AMENDMENT TO DEFERRED COMPENSATION PLAN
(Governmental Employer)
I.
INTRODUcnON
IJ1 ()1Vf!;<.;~ WvN'1
(hereln:uter. the: .. Em:)lo\"er . J iu:reo\' I:x~"utes lillS J.mencime:nt In conne:ctlon Wllh to":':
(herein:uter. the "rIm I pU~lJ.1m to sl:l:tlon 'i 1';"' III UIl: intc:m:1l Rc:vcnue Lode or I "%. a:. 3Il1endt.-u (rhe .'Cude.').
II. PLAN ELEcnONS
2.01 Effective: Dare: :Check onel
~ amendment is executed in connection "1th a new PUn and the enecti\'e d:1te is
o This is an amendment to an existing Pl.m. which was esablished dfecti\'e:
The etfecti\'e date ot this amendment IS
~ / / !7,--(JO G)
2.02 E.,<clusi\'e: Be:ne:~t. Amounts held under rhis Pl.m snall be held in trwt. In annuity contr:1ctS. or in one or more C'~-:odial
accounts tor ti:: e.''tcusi\'e bene:rit ot" Plm pm:.:ipants and their bc:nericiaries as d~scribed in section 3.01. (ChecK onel
~'L! ."nn1t'm~nt IS t':\,"'llllt'd III rnlll:,',7101/ WII;' II 111"'" I'hlll t'st,lblisl,t'a ,~r,.rtiz't' nil or II"" .~I/~lSt .!O. /9%.
this option III/1St b,' Sl'Il-t.'utl
o t'-:o. S"l'tlCI, 5.0/ sl,o/if /1111 .1/'1'11' III fl,,,. i'~~;j. ifd,ilo/,tlnll u ,..I"('/I'll. tI,.. i"~~1/ If'fli' n'ql/lrt'tlfrt;,rr I/IIU'IfI/IIft'1II tr. .':lIIZII''':V I. 1999.
2.03 Distribution ,mhout p:Jrrlcip:mt's conse:nt, :imall OlccOUnts of cert3in inaai,'e: ~:Jl'ticipanrs may be: distributed
without the participants' consent as described in section 3.02. (Check onel
a Yes. if the row amount pa~"3ble ro a p:uticipant under the Plan does not o:ccc:d
(insnr IIn tlllltlunt "p to S5.ooo).
~on 3.02 slJaD 1I0t "pply tfJ tltis I'!.:II.
2.04 Parricip:tnt's d~nn tn nocci\'t' dimihminn or' :tccnunt h:tbnCl!. :\ participant mayelc:a to rc:ccivc: a distribution
ofhis or her aa:ount babncc::IS described in section 3.03. (Olcck one)
~if the roed amount pa~"3b~e to a p:uticipant under the: Plan does not aceed ?OO 0
finsm an amOllnt lip to S5.ooo).
o No. S<<non 3.03 shllii 1I0t Ilpp(V 10 this I':"m.
1.05 (rreync1ble: d..~lon. (Cht.'Ck uncI TIll: adJition.u dl:L"lIOn (() dder comntl:n~a.::':'1.:l1t llt'ba.:ndits as described in ~cction 3.04
is available to pmicipants.
~
o No. SmiDn 3.04 shaD IIOt npp(v to this P!rn.
III. PLAN PROVISIONS
3.01 Notwith~t:lndin~ :lnv "rnvi~ion nf the: Phn to th~ cnntl':uv. if th~ Emnlon'r ~o decrs under ~ectinn 2.02:
(a) A5 of the J..m: of this amendment. all amounts currmdv or thLTC::lfte:r held undt.'" rhe: Plan. includins amounts dc:fcm:d and ~':lminss
or other aealmuJouions attributable then:tn. ~hal1 be: hdd for the: adusi\o.: bcnc:t1t of Plan p:Jl'ticipants and bc:ncDciarics (i) in annuity
cont~ ur Iii) in trust m in one or more custodial ;KXOUllts pursu;ant to one Ot man: SL-p:ar;ate: wrincn InsuumcnU. Any s~
annuity contr:lCt. trwt. or I:ustodial ac.:uunt must satisfY the: rcquimnc:nrs of section 4')iCg)(I) of the CuJc. For purpoS&."S of t,hlS
amendment. the: terms .'participant" and .'b.:nc:h~;' shall be understOO\i to mer:1!so to contingent bt.-nc:ticQroCS and/or spouses.. tor-
mer spouses.. or childn:n at. participants rl'r whose benc:tit amounts are ~ns: held under the: Plan pursuant to me cenns of a domestiC
rdacions order which has lll..'l:n rt.~nizL-d under the te:rms of the: Plan. ..
(b) In adoptin!! this amendmenr. the: Emplowr im:\,abh. rcnounct."S. un b.:hJlf of the Emplover. itS successors or :rs assigns. any dum or
right whier. it ma,' have rctalllL-U III 11M: amllUnts hdd ~1ndc.T the Pl.lll t(lr II" .l\vn ncnctit or tt)r rhe benetit of its .:=tors. .n1is ;lmend-
ment shaii ":o~stitute IIlStruculln to the: il>,uer or ;l1l\'.:tilOuin' col1tmas rur.:hJS&.-u under the Plan to r~'COrd u:'On its ~rds that such
contr:1cts. .1:;: ndd b,' the Empill\'I.'r ri,r tria.: exciusi,'~ benctit of partlcio.lnts .md benericiarit.'S. Anv discrenol131": ~uthontv n:scr\'ed 10
Ihe Emplo"c:r lor to :1m' :tdmllll~lr:ltor or .ldmin~tr:1t1\'C committCCI unda.:r :n.: PI.II\ or undcr :In\" :mnuin' conn-...."t neld under the Pbn.
to the c::uent tne exetCI~ thcr~'tl( would Otne"",\/: be mconsistcnt \\;ch troIS .tmendment. shall h.: c:ltem~cd lor ::'Ie cu:lusivc bl:nerit of
Plan parn.::canfs ~rid bc:nerici:lii~'S. ;\n\' h..uer' nt. an annuity l:ontr:1a ridd under the Plan shall ha\'C no ;lutho~n' to ~y :lnv amoums
from sucn .:o~rr:1ctS to all\' CtcditoJ' ot the: Employer. .lnd sh311 ha\'l: no dun' to mquire into che: \.aJidi~' at ;In\' ~ bv t~e:.Empl~r
or by an acmlnisrl'2tOr or :ldmini~tr:1tiw ..:ommlnl.~ lor distribution at .amounts tOr the: bc:ncrit ot'lI p:uticip:uu or a ~I~' under
rbePlan. .c _ :....._ , ___ '.__' ....
..
...
k) Amounts held under me Plm pursUJnt to me prca:a1ng p~h )nail Ulnunuc to DC sUDlcct to i'lm promoitions ~nst JSSIEl1ment.
.1lien2uon. amicipauon. ~On\'e\"mc:e. or encumDr:mc:e ot. m\' t\-pc 0\' J oJrtICloant or OenericQr.~ except :IS, othen\1~ orO\1UCQ Wluc:r
the Plm. . .
Idl In me event or' J n:cUQt 0\' .1 D.1ltIClOmt rllr J rr:mstcr tel J pim under wnlch Jnlounts arc not hdd in the mmner d~:n[)(...ci In
p~ph 1.11. )uch tr.mster ~h.ui be pernmtcu Onl\' l'llmenme pennlttl'O 0\' me Plan ami appiicaolc: law. In no c:\'ent mJ\' me CmpIO\'I.T
cause such J tr:msrer to De mJQe. except :\t me request or 3 partlcipmt.
1.(.') Rcsponslbilit\. tor the '>Cit:CtIon ur In\,estment .utCrn3t1VCS lor PI.ul =ts sn3il be ret:um:u Iw rhe Empio\'er. and the Emplo\'er sh3il h3\'e
rhe ncin to modin' me selection or Investment ;UtemJtlvcs rmm nme to time. Howe\'er. pJrtlciomts md bcnericiJrics m3Y JJiocue
.uno~ts held in theU' Jccounts Dr nthen\'l~e crCOJted tor rhelr benerir under rhe Pl:tn amon!:! 'the il1\'cstment :Utem:1t1vt:.S sc:iecteri
by the Empio\'cr. md the r.mplo\'er ~h:tll wuse such ;lmOunts to Oc ~u .lilocm:d within J rl':lSonJblc: time after the. rcc:eIOt ot'D:1ItICIOmt
IIlstructlons. or mJ\' instrUCT ril.: I))ucr. r rustee. Dr cusrcxiJ.1Il to .1~(Cpt ~uLh :tlloclllon II1StruCUOns dircah' tram r-;1Itlclpmts .1IlU
benerici:rries :IS rcpresenctl\.cs or'the r.mpio\'cr,
3.02 Distrihution wirhout D;lrr;cip3nt.s con~ent, If the Emplm.t"r ~n dects under ~ecrion 2.0~, rhe Tnt:!1 :!mount D:!V3ble TO :!
particip;lnT under rhe P1.m m3\' he distrihured to the p;lrtlcip:lI1r Without hi~ or her consent if:
(3l such :unount docs not exceed the dollJr limit under scction 411 (.1)( II HAluf the Code (or such Icsser :unount :IS may be elected b\.
the Employer under section 2.03). md
(bl n~ ;lmounr h:lS been deterred under the Plan with respect to rhe pJrricipmt durin~ rhc t\vo-yeJr period cnding on the d:1te
ut the dimibution. J.lld
Ic) rhere h.l5 DI.'Cn nil pnor distribUTIon under the 1'1.1Il 1Il rhe 1'.lrtlCIPJ.Ill unu.:r rhls scc.;Tlon .~.02 lit under scction 3.03.
\.0] P.lrTlCI['l:lIH~ l.il'crilln rn fl'C!.'iw di,tnhutll>l1. If rill' hnl'lon.r "I dl'~I~ undl.'r 'l'UlOn 2.04, .1 \1:lftlcil,anf m:1\' dect to
recc"'!.' :1 disrrihuTlon 01' the ror:11 .Immlllt n:I\,;lblc [(l him or her under rhe PI:1I1 Ir:
(a) such :unounc docs not excc:cd the dollar limit under seCtion 411 (a)( 11 )(Al of the Code (or such lesser amount as may be elected by
the Emplo~'Cr under sc:crion 2.04). and
(b) n~ amo~nt .has ~'Cn dd~Trcd under the Pbn with <<:speet to the parricipmt during the t\vo-ycr period ending on the: d:lte
ot the dlStnbutlon. and .
(e) then: has "'.'en no prior distribution under the Plan to Ihe pJrticipant under this sc.'Ction 3.03 or under section 3.02.
3.04 IrreYOC3ble election. If the EmplQyer ~o elects under section' Ot;. norwithst:lndinc :! puticip:lnt's prior ir~C:lble election to
defer payment of 3f\Y or 311 Jmounts under this Phn 3S provided by section 4t;7 of the Code :lnd the Trcsurv ~btions
rhereunder. ;lny ~uch p:!rT1Cip3nt m3\' decr to defer commencement of distributions under this Phn it:
(a) the election is m:zde ..uter :unounrs mJ\' he ;1\'Jibble under rhe Pl.1Il1ll Jccordmce with sealon 4;7(11)(1 HAl of the Code. and before
Lommencement ot' such distrihutions. ..lI\d
(bl there: h;1S bc:en no prior c:lt.'Ction by ~uc.;h pJ.nicipJnt under this section .i.04.
.3.05 Deterral limit;ltion. Th(' l11:1ximum amOUnt Ih:u In:!\' he ddcrred under the Phn wirh re~pect to ;lny r:trticip:Jnt tor :mv
t.'1XJble \'C:1r sh:lIl he :1diusted for cosc-nt:'li\'inV 1l1cre:lses in accord3nce with section 457(1.')( I S) of the Code.
Signed by:
Name (printed):
lidc:
Employer's nJme:
On the
d.lv nt'
. 1 C)
RM
VA to7lltl,ft
..
/J1 0 1111< o~ lLJv flI])~
DEFERRED COMPENSATION PLAN
ARTICLE I. INTRODUCTION
The (tloJvtbr;;-C1, V ~ (the "Employe"') hereby estabUshes
the Deferred Compensation Plan, hereinafter referred to as the "Plan".
The Plan is intended to be an eligible deferred compensation plan under section 457 of the
Internal Revenue Code of 1986, as amended. The primary purpose of this Plan is to attract and retain
qualified personnel by permitting them to provide for benefits in the event of their retirement or death.
Nothing contained in this Plan shall be deemed to constitute an employment agreement between
any Participant and the Employer and nothing contained herein shall be deemed to give any Participant
any right to be retained in the employ of the Employer.
ARTICLE II. DEFINmONS
2.01 Account: The bookkeeping account maintained for each Participant reflecting the cumulative
amount of each Participanfs Deferred Compensation, including any income, gains, losses, or
increases or decreases in market value attributable to the Employer's investment of the
Participanfs Deferred Compensation, and further reflecting any distributions to the Participant
or the Beneficiary and any fees or expenses charged against the Participant's Deferred
Compensation.
2.02 Avreement A Deferred Compensation Agreement entered into between a Participant and the
Employer and any amendments or modifications thereof. Such Agreement shall fix the amount
of Deferred Compensation, establish the time when the payment of benefits shall commence,
specify the Participant's investment selection with respect to his Deferred Compensation,
designate the Employee's Beneficiary or Beneficiaries and incorporate the terms, conditions, and
provisions of this Plan by reference.
2.03 Annuity Contract: A group fixed, variable or combination fixed and variable annuity contract
issued by The Variable Annuity Ufe Insurance Company (VALlC) or by any other licensed life
insurance company. and approved for sale in this State, which provides for periodic payments
at regular intervals, whether for a periOd certain or during one or more lives.
2.04 Beneficiary: The Beneficiary or Beneficiaries designated by the Participant in his Agreement
who shall receive any benefits payable hereunder in the event of the Participanfs death. If more
than one designated Beneficiary survives the Participant, payments shall be made equally to the
surviving Beneficiaries, unless otherwise provided in the Agreement. If no Beneficiary is
designated in the Agreement, if the designated Beneficiary predeceases the Participant, or if no
designated Beneficiary survives the Participant for a period of fifteen (15) days, then the estate
of the Participant shall be the Beneficiary. However, a Participant may designate a contingent
Beneficiary (or Beneficiaries) who shall become the Beneficiary under this Plan in the event that
the primary Beneficiary does not survive the Participant for a period of 15 days.
..
2.05 ~: The Internal Revenue Code of 1986, as amended.
2.06 Contractor. The Variable Annuity Life Insurance Company (VALlC) or such other entity as the
Employer designates to perform administrative services under this Plan.
2.07 Deferred ComDensation: The amount of Normal Compensation otherwise payable to. the
Participant which the Participant and the Employer mutually agree to defer hereunder, any
amount credited to a Participant's Account by reason of a transfer under section 8.01, or any
other amount which the Employer agrees to credit to a Participant's Account, and which does not
exceed the Maximum Limitation.
2.08 Em Dlovee: Any individual, whether appointed, elected or under contract, providing services for
the Employer for which compensation is paid.
2.09 EmDloyer: The
/110 AI /Lo E
COUNTY
/
2.10 Includible Compensation: The amount of compensation payable to a Participant from the
Employer which is includible in the Participant's gross income for federal income tax purposes.
Such term does not include any amount excludible from gross income under this Plan or any
other plan described in section 457(b) of the Code or any other amount excludible from gross
income for federal income tax purposes. Includible gross income shall be determined without
regard to any community property laws.
2.11 Maximum limitation: The maximum amount that may be deferred under this Plan for the
taxable year of a Participant. Such amount shall be either the Normal Limitation or Catch-Up
Limitation, whichever is applicable.
(a) NORMAL LIMITATION: The maximum amount deferred shall not exceed the lesser of
$7,500 or 33-1/3% of Includible Compensation (ordinarily this shall be the equivalent of
the lesser of $7,500 or 25% of Normal Compensation).
(b) CATCH-UP LIMITATION: For each one of the last three (3) taxable years of a Participant
ending before the Participant's attainment of Normal Retirement Age, the maximum
amount deferred for each such year shall be the lesser of
(1) $15,000; or
(2) the sum of the Normal Limitation, plus that portion of the Normal Limitation not
used in each of the prior taxable years of the Participant commencing after 1978
in which (i) the Participant was eligible to participate in this Plan or the plan of
another employer, and (Ii) compensation deferred under this Plan (or such other
plan) was subject to the deferral limitations set forth in this section.
A Participant may utilize the Catch-Up Limitation only if he has not previously utilized it
with respect to a different Normal Retirement Age under this Plan or any other plan.
(c) OTHER PlANS: The amount exdudibJe from a Participant's gross income for any taxable
year under this Plan or any other plan under section 457(b) of the Code shall not exceed
$7,500 (or such greater amount allowed under paragraph (b) of this section) less any
amount exduded from gross income under sections 403(b), 402(a)(8), or 402(h)(1)(8) of
the Code, or any amount with respect to which a deduction is allowable by reason of a
contribution to an organization under section 501(c)(18) of the Code.
2.12 Nonnal ComDensation: The amount of compensation which would be payable to a Participant
.QOC 1/90 Page 2
by the Employer if no Agreement were in effect to defer compensation under this Plan.
2.13 Nonnal Retirement Age: Age 70-1/2, unless the Participant has elected an alternative Normal
Retirement Age by written instrument delivered to the Employer prior to Separation from Service.
A Participant's Normal Retirement Age determines the period during which a Participant may
utilize the Catch-Up Limitation of section 2.11(b) hereunder.
Once a Participant has to any extent utilized the Catch-Up Limitation of section 2.11(b), his
Normal Retirement Age may not be changed.
A Participant's alternative Normal Retirement Age may not be earlier than the earliest date that
the Participant will become eligible to retire and receive unreduced retirement benefits under the
employer'S basic retirement plan covering that Participant and may not be later than the calendar
year in which the Participant attains age 70-112.
If a Participant continues employment after attaining age 70-1/2 not having previously elected
an alternative Nonnal Retirement Age. the Participant's alternative Normal Retirement Age shall
not be later than the mandatory retirement age, if any, established by the Employer or the age
at which the Participant actually separates from service if the Employer has no mandatory
retirement age.
If the Participant will not be eligible to receive benefits under a basic retirement plan maintained
by the Employer, the Participant's Normal Retirement Age may not be earlier than attainment of
age 55 and may not be later than the calendar year in which the Participant attains age 70-112.
2.14 Particioant Any Employee who has enrolled in this Plan pursuant to the requirements of Article
IV.
2.15 Plan Year: The calendar year.
2.16 Retirement: The first date upon which each of the following shall have occurred: Separation
from Service and attainment of age 65.
2.17 Seoaration from Service: Severance of the Participant's employment with the employer within
the meaning of section 402(e)(4)(A)(iii) of the Code.
QDC1ffiO P~e3
-4
ARTICLE III. ADMINISTRATION
3.01 This Plan shall be administered by a Committee (the "Committee") of one or more persons
appointed by the Employer. The Committee shall act as the agent of the Employer in all matters
concerning the administration of this Plan. The Committee shall have full power to adopt, amend,
and revoke such rules and regulations consistent with and as may be necessary to implement
this Plan, to enter contracts on behalf of the Employer under this Plan. and to make discretionary
decisions affecting the rights or benefits of Participants under section 6.06 of this Plan.
3.02 Any Employee who is charged with administrative responsibilities hereunder may participate in
the Plan under the same te""s and conditions as apply to other Employees. However. he shall
not have the power to partiCipate in discretionary action taken with respect to his participation
under section 6.06 of this Plan.
3.03 The Employer may enter into an agreement with a Contractor to provide nondiscretionary
administrative services under this Plan for the convenience of the Employer including, but not
limited to. the enrollment of Employees as Participants. the maintenance of Accounts and other
records. the making of periodic reports to Participants. and the disbursement of benefits to
Participants.
ODC 1/90 Page 4
..
ARTICLE IV. PARTICIPATION IN THE PLAN
4.01 Ar1 Employee becomes a Participant when he has executed and entered into an Agreement with
the Employer.
4.02 Ar1 Employee may become a Participant as of the first day of any calendar month by entering !nto
an Agreement with respect to compensation not yet earned. A new Employee may become a
Participant on the first day of employment by entering into an Agreement on or before the first
day of employment with respect to compensation not yet earned.
4.03 The Agreement shall defer compensation not yet earned. and each Agreement must be made
on or before the beginning of the month in which it is to become effective or on or before the first
day of employment. with respect to a new employee.
4.04 At the time of entering into or amending an Agreement hereunder. a Participant must agree to
defer a minimum amount per month as specified by the Committee.
4.05 A Participant may not amend or modify an executed Agreement to change the amount of
Deferred Compensation except with respect to compensation to be earned in the subsequent
calendar month and provided that notice is given prior to the beginning of the month for which
such change is to be effective. A Participant may change the Beneficiary designated in his
Agreement at any time by giving notice to the Employer.
4.06 A Participant may revoke his Agreement and thereafter be restored to his Normal Compensation
in the subsequent calendar month, by giving notice to the Employer prior to the beginning of the
month for which such revocation is to be effective.
4.07 A Participant who returns to active service with the Employer after a Separation from Service,
or who has revoked his Agreement under section 4.06, may again become an active Participant
by executing a new Agreement with the Employer prior to the beginning of the calendar month
as to which it is to be effective.
4.08 Compensation may continue to be deferred under this Plan with respect to a Participant who is
on an approved leave of absence from the Employer with compensation. and all of the rules of
this Article shall apply with respect to making, amending or revoking any Agreement for such a
Participant. If a Participant is absent from work without compensation for a period of not more
than six months, whether by reason of illness. strike, lockout. shutdown or otherwise. his
Agreement will remain in effect and compensation will again be deferred thereunder when he
returns to work.
ODC 1/90 Page 5
-4
ARTICLE V. INVESTMENT OF DEFERRED COMPENSATION
5.01 For the purposes of satisfying its obligation to provide benefits under this Plan. the Employer may
invest the amount of compensation deferred by each Participant in Annuity Contracts as
specified in Participants' Agreements. However. nothing in this section shall require the
Employer to invest Deferred Compensation in any particUlar form of investment. All Annuity
Contracts and other investments held by the Employer with respect to this Plan, including all
property or rights purchased with Deferred Compensation and all income attributable thereto,
shall be the sole property of the Employer, and shall not be held in trust for Participants or as
collateral or security for the fulfillment of the Employer's obligation under this Plan. Any such
investments shall be subject to the claims of all creditors of the Employer. and no Participant or
Beneficiary shall have any vested interest or secured or preferred position with respect to such
investments or have any claim against the Employer except as a general creditor.
5.02 The benefits paid to a Participant or Beneficiary pursuant to Article VI of this Plan shall be based
upon the value of the Participant's Account. In no event shall the Employer's liability to pay
benefits exceed the value of the Participant's Account, and the Employer shall not be liable for
losses arising from depreciation or shrinkage in tile value of any investments acquired under this
Plan.
5.03 Each Participant shall receive periodic reports. not less frequently than annually, showing the
then-current value of his Account.
ODC 1/90 Page 6
-4
ARTICLE VI. BENEFITS
RETIREMENT BENEFITS AND ELECTION ON SEPARATION FROM SERVICE
6.01 Except as otherwise provided in this Article. the distribution of a Participant's Account shall
commence April 1 of the calendar year following the calendar year of the Participal"!t's
Retirement, and such distributions shall be made in accordance with one of the payment options
described in section 6.02. Notwithstanding the foregoing, the Participant may irrevocably elect
within 60 days following Separation from Service to have the distribution of such Retirement
benefits commence on the first day of a specified calendar month that is (i) no earlier than 61
days after the Participant's Separation from Service or 30 days after the election is made,
whichever is later. and (ii) no later than April 1 of the calendar year following the year of the
Participant's Retirement or attainment of age 70-1/2, whichever is later. A Participant's election
of a benefit commencement date that is made in his Agreement prior to Separation from Service
may be changed at any time up until the 60th day following the Participant's Separation from
Service, after which the election shall become irrevocable, provided, however, that if the
designated benefit commencement date has passed prior to the Participant's Separation from
Service, the election shall have no effect, and the benefit commencement date shall be
determined under the first sentence of this section.
PAYMENT OPTIONS
6.02 A Participant (or a Beneficiary as provided in section 6.05) may elect to have the value of the
Participant's Account distributed in accordance with one of the following payment options
provided that such option is consistent with the limitations set forth in section 6.03:
(a) Life Annuity;
(b) Life Annuity with 60,120, or 180
monthly payments guaranteed;
(c) Unit Refund Life Annuity;
(d) Joint and Last Survivor Annuity (spouse only);
(e) Lump Sum;
(f) Term Certain Annuity with 36, 48, 60. 72, 84. 96, 108, 120,
132, 144, 156. 168. or 180 monthly payments guaranteed;
(g) Any other method of payment agreed upon
between Participant and Employer.
The election of a payment option must be made at least 30 days before the payment of benefits
is to commence. If a Participant fails to make a timely election of a payment option, benefits shall
be paid under a life Annuity with 120 monthly payments guaranteed.
UMITATION ON OPTIONS
6.03 No payment option may be selected by the Participant (or a Beneficiary) unless it satisfies the
requirements of Code sections 401 (a)(9) and 457(Ct)(2), including that payments commencing
before the death of the Participant shall satisfy (i) the incidental death requirement under Code
section 457(d)(2)(B)(i)(I), and (ii) the substantially non increasing requirement of Code section
457(d)(2)(C). For purposes of determining required distributions under section 401 (a)(9) of the
ODC 1/90 Page 7
-4
Code, and applicable regulations. in the event no recalculation election is made, life expectancy
of a Participant and his spouse will be recalculated (except in the case of a life annuity), but no
more than once each year.
POST -RETIREMENT DEATH BENEFITS
6.04 Should the Participant die after he has begun to receive benefits under a payment option, the
guaranteed or remaining payments, if any, under the payment option shall be payable to the
Participant's Beneficiary commencing with the first payment due after the death of the Participant.
Payment to the Participant's Beneficiary must be made at least as rapidly as under the method
of distribution in effect at the time of the Participant's death. If the Beneficiary does not continue
to live for the remaining period of payments under the payment option, then the remaining
benefits under the payment option shall be paid to the Beneficiary's estate. In no event shall the
Employer be liable for any payments made in the name of the Participant or a Beneficiary before
the Employer or its agent receives proof of the death of the Participant or Beneficiary.
PRE-RETIREMENT DEATH BENEFITS
6.05 Should the Participant die before he has begun to receive benefits under section 6.01, a death
benefit equal to the value of the Participant's Account shall be payable to the Beneficiary
commencing on the 61st day following the Participant's death, unless the Beneficiary elects a
later commencement date within 60 days of the Participant's death. Such benefit
commencement date shall not be later than that permitted under sections 401 (a)(9), 457(d)(2)
of the Code, and the regulations thereunder. Such death benefit shall be paid in a lump sum
unless the Beneficiary makes a timely election of a different payment option. The payment
option chosen by the Beneficiary must provide for payments to the Beneficiary over a period no
longer than the life or life expectancy of the Beneficiary, provided that such period may not
exceed 15 years if the Beneficiary is not the Participants spouse. Should the Beneficiary die
before the completion of payments under the payment option, the value of the remaining
payments under the payment option shall be paid to the estate of the Beneficiary.
UNFORESEEABLE EMERGENCY WITHDRAWALS
6.06 Except as provided in this section, no amount shall be distributable to a Participant or Beneficiary
prior to the Participant's Separation from Service. In the event of an unforeseeable emergency
before or after Separation from Service or the commencement of Retirement Benefits, a
Participant may apply to the Employer to receive that part of the value of his Account which is
reasonably needed to satisfy the emergency needs. If such application for withdrawal is
approved by the Employer, the Employer shall pay the Participant such value as the Employer
deems necessary to meet the emergency needs. An unforeseeable emergency involves only
circumstances of sudden and unexpected illness or accident of the Participant or a dependent,
loss of property due to casualty, or other similar extraordinary or unforeseeable circumstance
arising as a result of events beyond the control of the Participant which would cause severe
financial hardship to the Participant if early withdrawal were not permitted. Payment may not be
made to the extent that such hardship is or may be relieved by other financial resources
available to the Participant, including insurance reimbursement, cessation of deferrals under this
Plan or liquidation of other assets, to the extent the liquidation of such assets would not itself
cause severe financial hardship. Unforeseeable emergencies do not include the need to send
a child to college or the desire to purchase a home.
- aDC 1/90 Page 8
-4
TRANSITIONAL RULE FOR PRE-1989 BENEFIT ELECTIONS
6.07 In the event that prior to January 1, 1989. a Participant or Beneficiary has commenced receiving
benefits under a payment option or has irrevocably elected a payment option or benefit
commencement date. that payment option or election shall remain in effect notwithstanding any
other provision of this Plan.
ODe 1/90 Page 9
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ARTICLE VII. NON-ASSIGNABILITY
IN GENERAL
7.01 Except as provided in section 7.02, no Participant or Beneticiary shall have any right to commute,
sell, assign, pledge, transfer or otherwise conveyor encumber the right to receive any payments
hereunder, which payments and rights are expressly declared to be non-assignable and
non-transferable.
DOMESTIC RELATIONS ORDERS
7.02 (a) Allowance of Transfers: To the extent required under a final judgment, decree, or order
(including approval of a property settlement agreement) made pursuant to a state domestic
relations law. any portion of a Participant's Account may be paid or set aside for payment to a
spouse, former spouse, or child of the Participant. Where necessary to carry out the terms of
such an order, a separate Account may be established with respect to the spouse, former
spouse, or child who shall be entitled to make investment selections with respect thereto in the
same manner as the Participant; any amount so set aside for a spouse, former spouse, or child
shall be paid out in a lump sum at the earliest date that benefits may be paid to the Participant,
unless the order directs a different time or form of payment. Where the final judgment, decree
or order does not define a form or time of payment that is available under this Plan, the Employer
or Contractor shall have the right to interpret the final judgment, decree or order in a manner that
is oonsistent with the terms of this Plan. Nothing in this section shall be construed to authorize
any amount to be distributed under this Plan at a time or in a form that is not permitted under
section 457 of the Code. Any payment made to a person other than the Participant pursuant to
this section shaD be reduced by required income tax withholding; the fact that payment is made
to a person other than the Participant may not prevent such payment from being includible In the
gross income of the Participant for withholding and income tax reporting purposes.
(b) Release from liability to ParticiDant The Employer's liability to pay benefits to a
Participant shaU be reduced to the extent that amounts have been paid or set aside for payment
to a spouse, former spouse, or child pursuant to paragraph (a) of this section. No such transfer
shall be effectuated unless the Employer or Contractor has been provided with satisfactory
evidence that the Employer and the Contractor are released from any further claim by the
Participant with respect to such amounts. The Participant shall be deemed to have released the
Employer and the Contractor from any claim with respect to such amounts, in any case in which
(i) the Employer or Contractor has been served with legal process or otherwise joined in a
proceeding relating to such transfer, (ii) the Participant has been notified of the pendency of such
proceeding in the manner prescribed by the law of the jurisdiction in which the proceeding is
pending for service of process in such action or by mail from the Employer or Contractor to the
Participant's last known mailing address, and (Hi) the Participant fails to obtain an order of the
court in the prOceeding relieving the Employer or Contractor from the obligation to comply with
the judgment, decree, or order. The Participant shall also be deemed to have released the
Employer or Contractor if the Participant has consented to the transfer pursuant to the terms of
a property settlement agreement and/or a final judgment, decree, or order as described in
paragraph (a).
(c) ParticiDation in L8Qal Proceedings: The Employer and the Contractor shall not be
obligated to defend against or set aside any judgment, decree, or order described in paragraph
(a) or any legal order relating to the garnishment of a Participant's benefits, unless the full
expense of such legal action is bome by the Participant. In the event that the Participant's action
(or inaction) nonetheless causes the Employer or Contractor to incur such expense, the amount
of the expense may be charged against the Participant's Account and thereby reduce the
Employer's obligation to pay benefits to the Participant. In the course of any proceeding relating
ODe 1/90
Page 10
-4
ODe 1/90
to divorce, separation. or child support. the Employer and Contractor shall be authorized to
disclose information relating to the Participant's Account to the Participant's spouse. former
spouse, or child (including the legal representatives of the spouse. former spouse. or child), or
to a court.
Page 11
ARTICLE VIII. TRANSFERS
TRANSFERS FROM OTHER PLANS
8.01 This Plan shall accept amounts deferred by an individual under another eligible deferred
compensation plan pursuant to section 457 of the Code. Any such transferred amount shall not
be treated as a deferral subject to the limitations of section 2.11, except that, for purposes of
applying the limit of section 2.11, an amount deferred during any taxable year under the plan
from which the transfer is accepted shall be treated as if it had been deferred under this Plan
during such taxable year and compensation paid by the transferor employer shall be treated as
if it had been paid by the Employer.
TRANSFERS TO OTHER PLANS
8.02 A Participant may elect to have any portion of the amount payable to him transferred to another
eligible deferred compensation plan. This election must be made before the earliest date that
deferred amounts would otherwise be payable to the Participant under this Plan.
ODe 1/90 Page 12
ARTICLE IX. AMENDMENT OR TERMINATION OF PLAN
The Employer may at any time amend or terminate this Plan. provided. however, that such amendment
or termination shall not impair the rights of Participants or their Beneficiaries with respect to any
compensation deferred before the date of the amendment or termination of this Plan except as the same
may apply to maintaining the privileged tax status of the Plan. Participants shall thereafter receive ~heir
Normal Compensation and benefits shall be paid as provided in Article VI.
If this Plan document constitutes an amendment and restatement of the Plan as previously adopted by
the Employer, the amendments contained herein shall be effective as of
and the terms of the preceding plan document shall remain in effect through
ARTICLE X. RELATIONSHIP TO OTHER PLANS
This Plan serves in addition to any other retirement, pension or benefit plan or system presently in
existence or hereinafter established.
ARTICLE XI. APPLICABLE LAW
This Plan shall be construed under the laws of the State of
IN WITNESS WHEREOF, the Employer has caused this Plan to be signed by its duly authorized officers,
on this _ day of . 19_.
EFFECTIVE the _ day of
,19_.
x
By:
TITLE:
ATTEST:
By:
ODe 1/90
Page 13
DEFERRED COMPENSATION AGREEMENT
This Agreement is made by and between
_ ("Participant").
("Employer") and
The parties agree to and acknowledge the following:
A. The Participant confirms that he has received a copy of the Employer's Deferred Compensation
Plan and has reviewed and understands all of the terms, provisions, and conditions of the Plan, all of which
are hereby incorporated into this Agreement.
B. Commencing . 19_, the Participant agrees to defer the right to receive compensation
to the extent of $ (per ) in retum for the benefits specified in the Plan and this Agreement
authorizes the Employer to so reduce his compensation.
C. The Participant's benefits under the Plan shall be based upon the amounts credited to the
Participant's Account, which shall reflect the Employer's investment of the Participant's Deferred
Compensation. For this purpose. the Participant requests that the Employer invest the Participant's Deferred
Compensation under a group annuity contract issued by The Variable Annuity life Insurance Company to
be allocated as follows: _% fixed; _% variable (specify desired percentages).
D. The Participant elects the following date for the commencement of benefits after Separation from
Service: . The Participant may change this election at any time up until 60 days following
Separation from Service, at which time the election shall become irrevocable. The date selected may be (I)
no earlier than the 61st day following the Participant's Separation from Service with the Employer, and (II) no
later than April 1 of the year following the year in which the Participant attains age 70-1/2 or Separates from
Service with the Employer, whichever is later.
E. The Participant's benefits shall be paid under a payment option available under the Plan that is
selected by the Participant at least 30 days before the benefit commencement date.
F. The Participant designates the following Beneficiary (or Beneficiaries) in accordance with Article
VI of the Plan (specify full~, relationship, and address):
Primary:
Contingent:
Dated this _ day of
.19__
Employer:
By:
Title:
Participant
Name:
Address:
SS#:
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vALle
I An AME~~ERAL Company
Portfolio Director Plus Group Master Application'
For use with all plan types mUI NQDA
THE VARIABLE ANNUITY LIFE INSURANCE COMPANY
APPLICANT - ~ployer OR 0 Other:
Name: lJ1(Y1/teoe-Cdv 11/7''1
Tax ID #: Phone:
Address: -S 10 () ~ /2..D
City: K.1?J We:57"State: H
TYPE OF PLAN (choose one)
o 403(b) Voluntary Deferred Annuity
o 403(b) State Optional Retirement Plan
o 403(~yer Retirement Plan
~~mpensation Plan (choose one):
[]lo4Si(b) Public Employer 0457(b) Private Non-Profit
o Other:
o 401 (a) or 403(a) Employer Retirement Plan
0401 (a) or 403(a) Self Employed Retirement Plan
o Other:
Name of Plan: I'l1 cJ1/ ~IV 'f=
TYPE OF ORGANIZATION (choose one)
o PS - Public Educational Institutions
o NP - Non-Profit Organizations (choose one):
0501 (c)(3) - Attach IRS determination letter 0 Other
g ~- Private For-Profit Organizations
~GOV - State and Local Governments
o SELF - Self Employed Individuals
Nature of Business:
REPLACEMENT (Complete if applicable)
o This a replacement of an existing group contract.
Company: Policy #(s):
STATEMENTS AND AGREEMENTS
A current prospectus for the Company's Separate Account for the contract
was provided with this application. Also, a current prospectus was provided
for each Fund selected in this plan. The prospectus for the Separate Account
provides sales expenses and other data. It is understood that annuity
payments (and termination values, if any) provided by the contract
applied for are variable and not guaranteed as to dollar amount when
based on the Investment experience of the Company's Separate Account.
It is understood and agreed that the investment options under the contract
will be limited to those options selected on this form, except as otherwise
indicated on the application or modified by agreement between the Company
and the Applicant, and will be subject to any other limitations described in
the contract. I hereby acknowledge that I have read and understand the
following information provided on the Information and Instructions page:
· Fraud Warning (if applicable)
· Receipt of Premium Pay~ents Prior to Establishing an Account
Dated at (City, State) ~ wes,
X
Zip: "330tf-C
Applicant Signature
Date
Applicant Title Employer Client #
Rep: I 0 do 0 do not have reason to believe this is a replacement contract.
. licensed Agent/Registered-RepresentaHve Signature
Date. .
State License #
Licensed Agent/Registered Representative (print name)
PRIMARY INVESTMENT OPTIONS A maximum of thirty (30) variable
funds may be chosen by the group contract owner, which must include at
least one money market fund (see Receipt of Premium Payments Prior to
Esta.blishing an Account section). For group contract owners who do not
select investment options below, the investment options available under the
contract shall be the Primary Investment Options.
~GSPC Stock Index
jGSPC Growth
American General International Growth
merican General International Value
American General Large Cap Growth
~American General Large Cap Value
.2\American General Mid Cap Growth
jmerican General Mid Cap Value
merican General Small Cap Growth
American General Small Cap Value
ounders Growth
Wutnam Global Growth
~tnam New Opportunities
~cudder Growth and Income
memPleton International
. Rowe Price Small-Cap Stock
Vanguard/Windsor II
American General Balanced
~Vanguard/Wellington
Wmerican General Domestic Bond
~GSPC Science & Technology
American General Socially Responsible
merican General Money Market
o American General Conservative Growth Lifestyle
o American General Growth Lifestyle
o American General Moderate Growth Lifestyle
ADDITIONAL OPTIONS These may be selected by the employer in
addition to, or in place of, those listed above for Employer-Sponsored Plans.
o AGSPC International Equities
o AGSPC MidCap Index
o AGSPC Small Cap Index
~GSPC Growth & Income
American Century - Twentieth Century Ultra
Dreyfus Small Cap Portfolio
o Neuberger&Berman Guardian Trust
Mutnam OTC & Emerging Growth
, 0 Templeton Foreign - Class 1
o AGSPC Capital Conservation
o AGSPC Government Securities
o AGSPC International Government Bond
o American General Core Bond
o American General High Yield Bond
o American General Strategic Bond
o Vanguard Fixed Income Securities - Long-Term Corporate Portfolio
o Vanguard Fixed Income Securities - Long-Term U.S. Treasury Portfolio
o AGSPC Social Awareness
o AGSPC Money Market
..2}j'anguard LifeStrategy Conservative Growth Portfolio
~anguard LifeStrategy Growth Portfolio
~gUard LifeStrategy Moderate Growth Portfolio
GSPC Asset Allocation
Templeton Asset Allocation
FIXED INVESTMENT OPTIONS AVAILABLE UNDER THE CONTRACT
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Information and Instructions
FRAUD WARNING
In some states we are required to advise you of the following: Any
person who knowingly intends to defraud or facilitates a fraud against an
insurer by submitting an application or filing a false claim, or makes an
incomplete or deceptive statement of a material fact, may be guilty of
insurance fraud.
Florida Residents Only: Any person who knowingly and with intent to
injure, defraud or deceive any insurer, files a statement of claim or an
application containing any false, incomplete or misleading information, is
guilty of a felony of the third degree.
New Jersey Residents Only: Any person who includes any false or
misleading information on an application for an insurance policy is subject
to criminal and civil penalties.
.i
Colorado, Kentucky and Pennsylvania Residents Only: Any person who
knowingly and with intent to defraud any insurance company or other
person files an application for insurance or statement of claim containing
. any materially false information or conceals for the purpose of misleading,
information concerning any fact material thereto, commits a fraudulent
insurance act, which is a crime and subjects each person to criminal and
civil penalties.
PREMIUM PAYMENT PROCESSING
VALlC has established certain standards for group premium remittances
and premium processing instructions to facilitate efficient processing
of premium payments. Premium processing instructions should be
provided before or concurrent with the group premium remittance.
The instructions and remittance should be in balance. VALlC's standards
may require that premium processing instructions be provided in one of
several approved electronic formats, depending upon the number of
participants included in the remittance.
RECEIPT OF PREMIUM PAYMENTS PRIOR TO ESTABLISHING AN ACCOUNT
If we receive Purchase Payments for a participant before we receive the
participant's application or enrollment form, we will not be able to establish
a permanent account for that participant. Under those circumstances, we
will take one of the following actions: -
Return Purchase Payments. If we do not have the particjpant's name,
address or social security number, we will return the Purchase Payment to
you unless this information is immediately provided to us. .
Employer-Directed Account. If we have your participant's name, address
and social security number and we have entered into an Employer-Directed
Account Agreement with you, generally we will deposit the Purchase
Payment in an "Employer Directed" account invested in the Money Market
Division selected. The participant may not transfer these amounts until
VALlC has received a completed application or enrollment form.
Starter Account. If we have the participant's name, address and social
security number, but we do not have an Employer-Directed Account
Agreement, we will deposit the Purchase Payment in a "starter" account
invested in the Money Market Division selected. We will send the
participant follow-up letters requesting the information necessary to
complete the application, including the participant's allocation instructions.
Unless a completed application or enrollment form is received by us within
105 days of establishment of the starter account, the account balance,
including earnings will be returned to you. VALlC will not be nisponsible
for any adverse tax consequences to the participant that may result from
the return of the participant's contributions.
VALlC HOME OFFICE
2929 Allen Parkway. Houston, TX 77019
Call1-800-44-VALlC for customer assistance.