Fort Walton Beach Resolution — 2009-45 - Establish Defined Plan after 1/10 — reading text

Contributions for the period beginning on the date the Participant commences participation under the Plan and ending on the date on which such Employee severs employment with the Employer or is no longer a member of a Covered Employment Classification, and such contributions shall be accounted for separately in his/ her Employer Contribution Account. Notwithstanding anything to the contrary herein, if so elected by the Employer in the Adoption Agreement, an Employee shall be required to make contributions as provided pursuant to Section 4. 03 or 4. 04 in order to be eligible for Employer Contributions to be made on his/ her behalf to the Plan. 4. 02 Forfeitures. All amounts forfeited by terminated Participants, pursuant to Section 7. 06, shall be allocated to a suspense account and used to reduce dollar for dollar Employer Contributions otherwise required under the Plan for the current Plan Year and succeeding Plan Years, if necessary. Forfeitures may first be used to pay the reasonable administrative expenses of the Plan, with any remainder being applied to reduce Employer Contributions. 4.03 Mandatory Participant Contributions. If the Employer so elects in the Adoption Agreement, each eligible Employee shall make contributions at a rate prescribed by the Employer or at any of a range of specified rates, as set forth by the Employer in the Adoption Agreement, as a requirement for his/ her participation in the Plan. Once an eligible Employee becomes a Participant, he/ she shall not thereafter have the right to discontinue or vary the rate of such Mandatory Participant Contributions. Such contributions shall be accounted for separately in the Participant Contribution Account. Such Account shall be at all times nonforfeitable by the Participant. 4  If the Employer so elects in the Adoption Agreement, the Mandatory Participant Contributions shall be picked up" by the Employer in accordance with Code section 414( h)(2). Any contribution picked- up under this Section shall be treated as an employer contribution in determining the tax treatment under the Code, and shall not be included as gross income of the Participant until it is distributed. 4. 04 Employer Matching Contributions of Voluntary Participant Contributions. If the Employer so elects in the Adoption Agreement, Employer Matching Contributions shall be made on behalf of an eligible Employee for a Plan Year only if the Employee agrees to make Voluntary Participant Contributions for that Plan Year. The rate of Employer Contributions shall, to the extent specified in the Adoption Agreement, be based upon the rate at which Voluntary Participant Contributions are made for that Plan Year. Employer Matching Contributions shall be accounted for separately in the Employer Contribution Account. 4.05 Voluntary Participant Contributions. If the Employer so elects in the Adoption Agreement, an eligible Employee may make after- tax voluntary ( unmatched) contributions under the Plan for any Plan Year in any amount up to twenty five percent ( 25%) of his/ her Earnings for such Plan Year. Matched and unmatched contributions shall be accounted for separately in the Participant's Voluntary Contribution Account. Such Account shall be at all times nonforfeitable by the Participant. 4.06 Deductible Employee Contributions. The Plan will not accept deductible employee contributions which are made for a taxable year beginning after December 31, 1986. Contributions made prior to that date will be maintained in a Deductible Employee Contribution Account. The Account will share in the gains and losses under the Plan in the same manner as described in Section 6. 06 of the Plan. Such Account shall be at all times nonforfeitable by the Participant. 4. 07 Military Service Contributions. Notwithstanding any provision of the Plan to the contrary, effective December 12, 1994, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with section 414( u) of the Code. Effective December 12, 1994, if the Employer has elected in the Adoption Agreement to make loans available to Participants, loan repayments will be suspended under the Plan as permitted under section 414( u)( 4) of the Code. 4. 08 Changes in Participant Election. A Participant may elect to change his/ her rate of Voluntary Participant Contributions at any time or during an election period as designated by the Employer. A Participant may discontinue such contributions at any time or during an election period as designated by the Employer. 4.09 Portability of Benefits. a) Unless otherwise elected by the Employer in the Adoption Agreement, the Plan will accept Participant ( which shall include, for purposes of this subsection, an Employee within the Covered Employment Classification whether or not he/ she has satisfied the minimum age and service requirements of Article III,) rollover contributions and/or direct rollovers of distributions (including after- tax contributions) made after December 31, 2001 that are eligible for rollover in accordance with Section 402( c), 403( a)(4), 403( b)(8), 408( d)( of the Code, from all of 3)( A)(ii), or 457( e)(16) the following types of plans: 1) A qualified plan described in Section 401 (a) or 403( a) of the Code; 2) An annuity contract described in Section 403( b) of the Code; 3) An eligible plan under Section 457( b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or a political subdivision of a state; and 5  4) An individual retirement account or annuity described in Section 408( a) or 408( b) of the Code (including SEPs, and SIMPLE IRAs after two years of participating in the SIMPLE IRA). b) Notwithstanding the foregoing, the Employer may reject the rollover contribution if it determines, in its discretion, that the form and nature of the distribution from the other plan does not satisfy the applicable requirements under the Code to make the transfer or rollover a nontaxable transaction to the Participant; c) For indirect rollover contributions, the amount distributed from such plan must be rolled over to this Plan no later than the sixtieth ( 60th) day after the distribution was made from the plan, unless otherwise waived by the IRS pursuant to Section 402( c)(3) of the Code. d) The amount transferred shall be deposited in the Trust and shall be credited to a Rollover Account. Such Account shall be one hundred percent ( 100%) vested in the Participant. e) The Plan will accept accumulated deductible employee contributions as defined in section 72( 0)( 5) of the Code that were distributed from a qualified retirement plan and transferred ( rolled a)( over) pursuant to section 402( c), 403( 3) of the Code. Notwithstanding 4), 403( b)( 8), or 408( d)( the above, this transferred ( rolled over) amount shall be deposited to the Trust and shall be credited to a Deductible Employee Contributions Account. Such Account shall be one- hundred percent (100%) vested in the Participant. f) A Participant may, upon approval by the Employer and the Plan Administrator, transfer his/ her interest in another plan maintained by the Employer that is qualified under section 401 (a) of the Code to this Plan, provided the transfer is effected through a one- time irrevocable written election made by the Participant. The amount transferred shall be deposited in the Trust and shall be credited to sources that maintain the same attributes as the plan from which they are transferred. Such transfer shall not reduce the accrued years or service credited to the Participant for purposes of vesting or eligibility for any Plan benefits or features. 4. 10 Return of Employer Contributions. Any contribution made by the Employer because of a mistake of fact must be returned to the Employer within one year of the date of contribution. LIMITATION ON ALLOCATIONS 5. 01 Participants Only in This Plan. a) If the Participant does not participate in, and has never participated in another qualified plan or a welfare benefit fund, as defined in section 419( e) of the Code, maintained by the Employer, or an individual medical account, as defined by section 4151( )( 2) of the Code, maintained by the Employer, which provides an Annual Addition, the amount of Annual Additions which may be credited to the Participant's Account for any Limitation Year will not exceed the lesser of the Maximum Permissible Amount or any other limitation contained in this Plan. If the Employer Contribution that would otherwise be contributed or allocated to the Participant's Account would cause the Annual Additions for the Limitation Year to exceed the Maximum Permissible Amount, the amount contributed or al- located will be reduced so that the Annual Additions for the Limitation Year will equal the Maximum Permissible Amount. b) Prior to determining the Participant's actual Compensation for the Limitation Year, the Employer may determine the Maximum Permissible Amount for a Participant on the basis of a reasonable estimation of the Participant's Compensation for the Limitation Year, uniformly determined for all Participants similarly situated.  c) As soon as is administratively feasible after the end of the Limitation Year, the Maximum Permissible Amount for the Limitation Year will be determined on the basis of the Participant's actual Compensa- tion for the Limitation Year. d) If,as a result of an inadvertent reasonable error in estimating the Maximum Permissible Amount for a Participant in accordance with Subsection ( b) or pursuant to Subsection ( c) or as a result of the allocation of forfeitures, there is an Excess Amount, the excess will be disposed of as follows: