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HomeMy WebLinkAbout2007-0817 S:\Our Do uments\0rdinanceM7\2-0RD Deferred Compensation.do ORDINANCE NO. ga&07- AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND NATIONWIDE RETIREMENT SOLUTIONS FOR THE ADMINISTRATION OF A DEFERRED COMPENSATION PLAN (457 PLAN), IN ACCORDANCE WITH ARTICLE 11 OF THE MEET AND CONFER CONTRACT BETWEEN THE CITY OF DENTON AND THE DENTON FIRE FIGHTERS ASSOCIATION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City has reviewed provisions of the deferred compensation plan provided by Nationwide Retirement Solutions and has determined that such a plan is permitted under Section 457 of the Internal Revenue Code; and WHEREAS, the City Council has approved Article 11 of the meet and confer contract between the City of Denton and the Fire Fighters Association, which allows Fire Department personnel and newly classified Fire Department personnel the option to enroll in an alternative deferred compensation program under conditional review of the plan; and WHEREAS, the provision in Article I stipulates the addition of an alternate deferred compensation plan by Nationwide Retirement Solutions must not bear additional expense on the City and must not change the asset management fees paid by employees participating in the existing deferred compensation plan with the tntemational City/County Management Association Retirement Corporation (ICMA-RC); and WHEREAS, the City has found no changes will occur to the asset management fees paid by employees participating in the ICMA-RC plan as a result of the addition of the Nationwide Retirement Solutions plan and the City will not assume additional expenses for providing this plan; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council hereby approves the Nationwide Retirement Solutions contract, attached hereto, between the City of Denton and Nationwide Retirement Solutions, and the City Manager is hereby authorized to execute the agreement on behalf of the City. SECTION 2. The City Manager, or his designee, is authorized to exercise all rights and duties of the City of Denton under the Agreement. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. 'y SAOu? Documcnlsv0rdinancesv07Q-0RD Defen'ed CompensationAm PASSED AND APPROVED this the / l /bay of 26 az 12007. ATTEST: JENNIFER WALTERS, CITY SECRETARY BY) f=O- APP?OVEDti TLEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: C /1% PE . McNEILL, MAYOR Page 2 of 2 Deferred Compensation Plan Administration Agreement This Administration Agreement ("Agreement") is effective this / 7 day of %/ / by and between Nationwide Retirement Solutions, Inc., a wholly owned subsidiary of NFS Distributor , In c., and a Delaware Corporation (hereinafter "Nationwide" or "Ad ipistrato and the City or County or any of its agencies, departments, subdivisions or instrumentalities of/j�l/ D/91O j2_ hereinafter referred to as EMPLOYER. WHEREAS, EMPLOYER, pursuant to and in compliance with Internal Revenue Code Section 457, has established a Deferred Compensation Plan, hereinafter referred to as PLAN, which permits EMPLOYER and its employees to enjoy the advantages derived from Section 457 of the Internal Revenue Code of 1986, as amended; and WHEREAS, the intent of the Program is to assist Employers and their employees in establishing an increased measure of financial security by providing for additional retirement income through the deferral of before -tax dollars and the reduction of current income tax liability thus offsetting the effects of Inflation or their ultimate retirement benefits, WHEREAS, EMPLOYER desires to utilize Nationwide in connection with the administration of the PLAN: and WHEREAS, Nationwide desires to provide such services subject to the terms and conditions set forth herein: Now therefore, EMPLOYER and Nationwide agree as follows: 1. SELECTION OF A DEFERRED COMPENSATION PROGRAM The Plan makes available to the Employer a third party administrator and investment and insurance products which, as a result of a careful evaluation of administrative abilities and experience, and the combination of costs, benefits, and services, provide a quality deferred compensation program. 2. DESIGNATION AND REGULATORY CONSIDERATIONS 3. EMPLOYER designates Nationwide as an Administrator for deferred compensation funds EMPLOYER has agreed to sponsor the Program and has selected and contracted with an independent plan administrator, Nationwide, eminently qualified to accept and fulfill the responsibility for all administrative requirements necessary for the successful operation of the Program. The Employer hereby accepts Nationwide to act as Program Administrator in fulfilling the administrative and marketing requirements of its Plan and the Program. Nationwide has represented and warranted to EMPLOYER that the Program and the Plans adopted thereunder meet all necessary criteria for approval by all federal and state regulatory authorities governing such programs. Employer has determined that it is an "eligible employer" as that term is defined in Section 457(e)(1)(A) of the IRC. A. EMPLOYER Employer may terminate this Agreement upon 90 days' written notice to Nationwide without cause. B. NATIONWIDE If the Employer fails to agree, whether by act or omission, to the terms and conditions for participation in the Program, Nationwide shall have the right to terminate this Agreement upon 90 days' written notice to the M:\Corp\2038\020/Nationwide Master Administration Agreement.doc DC-4055-1106 In[) Employer; provided, however, the Employer may cure the default or omission within 90 days immediately following the date of said notice. 4. DEFAULT In the event the Agreement is terminated for "Cause" (which shall mean the failure of either party to perform any or all of its obligations as defined herein); the non -defaulting party shall give the defaulting party written notice, specifying the particulars of the default. If such default is not cured within sixty (60) days from the date in which notice of default is given, the non -defaulting party may terminate the Agreement effective thirty (30) days after the end of the sixty (60) day period. 5. INVESTMENT OPTIONS Nationwide agrees to accept deferred compensation plan funds for investment in the investment options as mutually agreeable to the parties. EMPLOYER agrees to accept the terms and conditions of the insurance and investment company contracts as represented by Administrator pursuant to the operation of this Program. EMPLOYER agrees to assist the Administrator, as necessary, in the development of comprehensive investment and service specifications. A. Participants will be permitted to change their investment options as often as they wish, however, they shall be subject to any applicable penalty or charge or restriction imposed for such change. 6. ESTABLISHMENT OF ACCOUNTS A. ENROLLMENT SERVICES Nationwide agrees to process, or arrange to have processed, the enrollment of eligible employees who elect to participate in the Plans. Nationwide agrees to provide informational and promotional material pursuant to the Plan for distribution to employees of EMPLOYER. EMPLOYER agrees to allow and facilitate the periodic distribution of such material to employees and to disseminate promotional and communication materials as provided to it for employee distribution; It is mutually understood and agreed that EMPLOYER has designated Nationwide to act as its Agent in fulfilling certain of the administrative and marketing requirements of this Agreement. B. DEFERRALS The minimum participant deferral per pay period shall be not less than $10.00 or 1% (one -percent) of participant's salary. C. EMPLOYER agrees to: 1. Provide Administrator its full cooperation and support in administering the necessary deferral system for employee contributions; and notify Nationwide in writing, within fourteen (14) business days of a Participant's separation from service, including retirement, with an Employer. 2. Name An EMPLOYER official or committee to act as Contract Administrator on behalf of the EMPLOYER on all material matters relating to activities of the Program. 3. Recognize that such tax -deferred savings benefits will act as incentives for employees to voluntarily set aside and invest portions of their current income to meet their future financial requirements and supplement their retirement income. 4. Recognize that through the adoption of the Administrator's Program, all such regulatory, operational, administrative and other Program management responsibilities are assumed by Administrator on -2- M:\Corp\2038\020/Nationwide Master Administration Agreement.doc DC-4055-1106 IN] behalf of the EMPLOYER, in accordance with the Plan document, and certain responsibilities have been and may be delegated by Employer to Nationwide as Administrator; and 5. Recognize the important contribution of the Administrator's technical expertise in the design, implementation and administration of a Program established and administered in compliance with all applicable regulatory jurisdictions. 6. Recognize the benefits of Administrator's establishment of a functional administrative system on behalf of EMPLOYERS to administer the Program. 7. Enact the necessary resolution/court order to adopt the Administrator's Plan Agreement and to establish its Deferred Compensation Program for its employees. 8. Cause appropriate deductions to be made from such payroll(s) as may be applicable and send the funds representing the total participant deferrals to Nationwide. 9. Arrange for representatives of Nationwide to conduct enrollment meetings with the Employer's employees. 10. Accept the terms and conditions of the investment media and, if applicable, insurance contracts issued to the EMPLOYER pursuant to the Plan adopted by the Employer; 11. Use the Nationwide Plan document, promotional materials, and other forms provided to it as a participant under the Program in connection with the Nationwide Plan; 12. Select among the payout options available under the Program. 13. Notify Nationwide immediately as to any decrease in a participant's includible compensation or any increase in any pre-tax salary reduction. 14. Provide to Nationwide in such electronic or magnetic media designated by Nationwide, a deferral listing with respect to participant sub -accounts to include not less than the following: Name of participant Social security number of participant Amount to be credited to participant's sub-account(s) 15. Funds may be sent by wire transfer, through an automated clearinghouse or by check in accordance with written instructions provided by Nationwide. Failure to follow the written instructions provided by Nationwide may result in delay of posting to Participant accounts. 16. Authorize Nationwide to act upon instruction given by Participants pursuant to their personal identification number (PIN), such PINS can be used to obtain certain services as designated by Nationwide. D. The Administrator agrees to: 1. Establish a sub -account for each Participant. 2. Post and credit the amounts sent by EMPLOYER to the sub-account(s) of Participants in accordance with the latest written instructions on file with Nationwide. 7. PARTICIPANT SERVICES Administrator agrees to: A. Establish the overall Program, its funding options and administrative operations so as to comply with other regulatory authorities, including state statutes, constitutional restrictions and other appropriate authorities. -3- M:\Corp\2038\020/Nationwide Master Administration Agreemenl.doc DC-4055-1106 [nl] B. Provide Employer with a Deferred Compensation Plan Agreement and necessary agreements for execution with its participating employees, which is and will be maintained in compliance with the provisions of the IRC. C. Provide EMPLOYER with such technical assistance as is necessary to implement the Program in accordance with the needs and objectives of the EMPLOYER'S individual requirements. D. Provide an administrative support system to facilitate employee deferrals, reconciliations, disbursements to the investment media, maintenance of the individual and Employer account records, provide periodic statements and coordinate employee distributions, and assure proper tax reporting systems. E. Provide such accounting and internal controls systems as are necessary to provide Employer with those reports specified in this Agreement, to meet the Employer's individual financial reporting requirements. F. Provide an interactive voice response (IVR) toll free telephone number which shall be operative 24 hours per day, 7 days per week (less normal maintenance time) for the IVR, and for live Participant Service Representatives, Monday through Friday, 8 a.m. - 9 p.m. Eastern time, each business day. Using this number participants may obtain information about participant accounts. EMPLOYER authorizes Nationwide to honor instructions, which may be submitted by participants using this number, either via the IVR, or to a live representative. Participant instructions may be in such form and content as may be mutually agreed to by Nationwide and EMPLOYER. G. As payor, compute and deduct from any disbursements made by Nationwide under the Plan all appropriate federal and State income taxes required by law to be withheld from plan distributions and also furnish to all participants receiving payments or benefits from the Program, appropriate tax reporting forms. H. Provide deferral limit testing services to Employer subject to the following: (1.) Nationwide shall accept or reject participant election forms; (2.) Nationwide shall not be responsible for monitoring deferrals to section 403(b), 401(a), 414(h) plans or other plans referenced by IRC (3.) Nationwide will not be responsible for monitoring interplan coordination should Employer offer more the one (1) section 457 plan. I. Provide Plan Participants unlimited opportunities to increase (within limitations of Sec. 457) or decrease deferral amounts. All requests to increase or decrease deferral amounts will be processed by Nationwide within five (5) business days of receipt of the request and will be effective as soon as administratively practical by EMPLOYER. J. Establish and maintain individual participant account records and calculate daily valuations of participant account. Such records shall contain the participant's social security number, the allocation of participant deferrals to the Program products available under the Plan, the participant's address, the participant's birth date, the participant's beneficiary designation, and any other data necessary for administration of the participant's account. K. Provide Plan Participants opportunities to redirect future deferral amounts to any other Investment Product offered by the Plan. All requests will be processed within five (5) business days of receipt and the deferral will be effective with the next following pay period. L. Provide Participants the daily ability to exchange existing account balances from one investment option offered by the Plan to another (except for the limitation described in Section 5A above). Exchange requests for mutual funds will be processed with the fund being "sold" by the date following the date Nationwide receives such instructions and will be effective in the new fund not later than the day following Nationwide's receipt of funds from the "sold" fund. -4- M:\Corp\2038\020/Nationwide Master Administration Agreement.doc DC-4055-1106 [nl] 8. M. Provide Participants, if they request, a fund prospectus and an annual report for each mutual fund offered by the Plan. Specific mutual fund prospectuses and other relevant information is to be provided by each respective mutual fund or other investment provider upon request by Nationwide or a participant. N. Provide Participants consolidated quarterly statements reflecting the Account balances as of each March 31, June 30, September 30, and December 31 ("Statement of Account"). The Statement of Account shall indicate the deferred amounts received and processed by Nationwide for each such participant, the account value of each investment by such participant, the total account value (including earnings or losses with respect thereto) of each such participant's account at the end of the period. An individual Statement of Account shall be mailed to each participant in a sealed envelope as promptly as possible but no later than thirty (30) days following the end of each calendar year quarterly period. Participants shall be informed that they must notify Nationwide within thirty (30) days of receipt of their statements or confirmation of their investments, to report any errors to Nationwide. Nationwide will not be liable for any errors not reported within this time frame. O. Provide the following reports to the Employer on a timely basis as follows: (1.) Nationwide shall provide Employer, within thirty (30) days following the end of each calendar year quarterly period, with a calendar year quarterly Plan statement, produced as a by-product of the participant statements ("Entity Statement"), summarizing all participant activity that transpired during the reporting period: and (2.) Quarterly summaries to Employer, within thirty (30) days after the end of each calendar year quarterly reporting period (March 31, June 30, September 30 and December 31), indicating the total deferred funds allocated to each investment or insurance option under the Plan ("Financial Activity Confirmation Statement"); and (3.) Calendar year quarterly Surrender Audit Reports, to Employer within thirty (30) days following the end of each calendar year quarterly reporting period, showing by participant, Social Security number, the total amount surrendered by fund and the date of such surrenders. The type of withdrawal (for example, annuity purchase, payments due to termination of employment, and unforeseeable emergency withdrawal), will be indicated by a two -digit reason code P. Maintain, for a reasonable time, the records necessary to produce the above mentioned reports, and agrees that all records shall be the property of EMPLOYER. EMPLOYER agrees that all related computer tapes, disks and programs shall remain the property of Nationwide. A. Nationwide will assist the Participant in preparing the necessary forms to select his/her distribution option. B. Participants electing a payment of a lump sum amount will receive distribution of their account within ten (10) business days of the earliest day permitted by the Plan. However, Nationwide shall initiate the processing of all approved emergency/hardship requests upon receipt. C. Nationwide will provide necessary forms and process payments from the Participant's account, to the company selected by the Plan to provide annuity options to Participants. Participant will be required to submit properly completed forms to Nationwide in a time frame necessary to effectuate the "payment begin date" requested by Participant. D. All payment options are available for all investment options. All distributions will be made pro-rata from each of the Participant's investment options. E. Nationwide will be responsible for preparing and filing all reports required by federal and state taxing authorities through the effective date of the Agreement's termination. -5- M:\Corp\2038\020/Nationwide Master Administration Agreement.doc DC-4055-1106 [nl] 9. TERMINATION Upon the effective date of termination of this Agreement, the following shall occur A. Nationwide will no longer accept deferrals. B. Nationwide will provide EMPLOYER a copy of all records relating to Participant sub -accounts, in hard copy or such other form as mutually agreed upon between Nationwide and EMPLOYER, within one hundred twenty (120) days after the effective date of termination. C. Accounts in distribution will be transferred to EMPLOYER or its designee in accordance with the time frame described above. 10. CONFIDENTIALITY Nationwide agrees that all information supplied to and all work processed or completed by Nationwide shall be kept confidential and will not be disclosed except as required by law. 11. PRIVITY OF CONTRACT Nationwide and Plan Participants shall have no privity of contract with each other. 12. TITLE AND OWNERSHIP In accordance with the provisions of Internal Revenue Code Section 457, all account(s) established under this Agreement shall be held in the name of EMPLOYER, or by a Trustee/Custodian with a multi -employer "omnibus account" for the benefit of participants, in accordance with the Plan. 13. CIRCUMSTANCES EXCUSING PERFORMANCE A. Neither party to the Contract shall be in default by reason of failure to perform in accordance with its terms, including but not limited to the administrative and marketing services set forth in this Agreement, if such failure arises out of causes beyond reasonable control and without fault or negligence on their part. Such causes may include, but are not limited to, acts of God or public enemy, acts of the government in either its sovereign or contractual capacity, fires, floods, epidemics, quarantine or restrictions, freight embargoes, and unusually severe weather. Neither party shall be responsible for performing all or that portion of services precluded by the foregoing events for such period of time as EMPLOYER or Administrator are precluded from performing such services in the normal course of business. Nationwide shall not be liable for lost profits, losses, damage or injury, including without limitation, special or consequential damages, resulting in whole or part from the foregoing events. "Acts of God" are defined as acts, events, happenings or occurrences due exclusively to natural causes and inevitable accident or disaster, exclusive from all human intervention. 14. INDEMNIFICATION Nationwide agrees to defend, indemnify, and hold harmless the EMPLOYER, its officials, employees, and agents from all loss, cost, and expense arising out of any loss or injury sustained by anyone in connection with Nationwide's acts, errors, or omissions, or any of those of its officers, agents, or employees, whether such act is authorized by this Agreement or not; and shall pay for any and all damages to EMPLOYER's property and funds of the EMPLOYER, or loss or theft of such property or funds. The Provisions of this Article do not apply to any damage or loss caused solely by the acts, errors, or omissions of the EMPLOYER, its officials, employees, or agents. -6- M:\Corp\2038\020/Nationwide Master Administration Agreement.doc DC-4055-1106 IN] 15. ATTORNEYS' FEES Each party agrees that in the event of a claim, arbitration, or lawsuit filed by a party to this Agreement, each party shall be responsible for its own attorneys' fees and/or any costs or expenses related to the bringing or defense of any such claim, arbitration, or lawsuit. 16. CONTRACT TERM This agreement is effective until terminated in accordance with Section 3 above. 17. ASSIGNABILITY No party to this Agreement shall assign the same without the express written consent of the other party, which consent shall not to be unreasonably withheld. This provision shall not restrict Nationwide's right to delegate certain services to an agent, including any affiliate. Unless agreed to by the parties, no such assignment shall relieve any party to this Agreement of any duties or responsibilities herein. 18. PARTIES BOUND This Agreement and the provisions thereof shall be binding upon and shall inure to the benefit of the successors and assigns of the respective parties. 19. APPLICABLE LAW This Agreement shall be construed in accordance with the laws operating within the State of Texas. 20. UNLAWFUL PROVISIONS In the event any provisions of this Agreement shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts of the Agreement, but the same shall be construed and enforced as if said illegal or invalid provisions had never been inserted herein. Notwithstanding anything contained herein to the contrary, no party to this Agreement will be required to perform or render any services hereunder, the performance or rendition of which would be in violation of any laws relating thereto. 21. MODIFICATION This writing is intended both as the final expression of the Agreement between the parties and as a complete statement of the terms of the Agreement. No modification of this Agreement shall be effective unless and until such modification is evidenced by a writing signed by both parties. 22. NO WAIVER The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver of that provision or of any other provision in the Agreement and neither party may, at any time, enforce the provision previously waived, unless a modification to this Agreement has been executed. 23. SEVERABILITY The provisions of this Agreement are severable, and, if for any reason a clause, sentence, paragraph, or other part of this Agreement shall be determined to be invalid by a court or federal or state EMPLOYER, board, or commission having jurisdiction over the subject matter thereof, such invalidity shall not affect other provisions of this Agreement which can be given effect without the invalid provision. 24. NOTICES All notices and demands to be given under this Agreement by one party to another shall be given by certified or United States mail, addressed to the party to be notified or upon whom a demand is being made, at the addresses set forth in this Agreement or such other place as either party may, from time to time, designate in -7- WCorp\2038\020/Nationwide Master Administration Agreement.doc DC-4055-1106 [nl] writing to the other party. Notice shall be deemed received on the earlier of, 3 days from the date of mailing, or the day the notice is actually received by the party to whom the notice was sent. If to Nationwide: Nationwide Retirement Solutions, Inc. Attention: President 5900 Parkwood Drive Dublin, Ohio 43016 If to EMPLOYER: IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective on the date first written above. EMPLOYER By: Date: % /0% ILi AS TO FORM: kT FORNEY ''!! {;i= t%__NTON, TEXAS -8- M:\Corp\2038\020/Nationwide Master Administration Agreement.doc DC-4055-1106 [nl] Nationwi Retirement Solutions, Inc. By: La&�A Date: NATIONWIDE RETIREMENT SOLUTIONS, INC. DEFERRED COMPENSATION PLAN FOR PUBLIC EMPLOYEES 457(b) GOVERNMENTAL PLAN DOCUMENT Effective January 1, 2006 The Plan consists of the Provisions set forth in this document, and am- loan amendments which are incorporated as if fully rewritten herein, and, is applicable to each Public Emplovee who elects to Participate in the Plan. The Plan is effective as to each such Pubhc Employee upon the date he becomes a Participant by entering into and filing with the Administrator the Participation Agreement referred to herein. ARTICLE I Definitions 1.01. The following* terms shall, for purposes of this Plan, have the meaning set forth below. (a) ADMINISTRATOR means Nationwide Retirement Solutions, Inc. (r) ACCOUNT BALANCE means the bookkeeping account maintained with respect to each Participant which reflects the value of the deferred Compensation credired to the Participant, including the Participant's Annual Deferrals, the earnings or losses of the Participant's account (net applicable account expenses and fees) allocable to the Participant. The Account Balance includes any Plan Sponsor contributions under Section 4-01, anv Eligible Rollover Accounts(s), M.N. plan -to -plan transfers, and any account established for a Beneficiary- after a Participant's death. If a Participant has more than one Designated Beneficiary at the time of the Participant's death, then a separate account shall he established and maintained for each Beneficiary. (c) ALTERNATE PAYEE means a person entitled to receive a benefit under the Plan through a Domestic Relations Order, as defined in IRC Section 414(In)(8). (d) ANNUAL DEFERRAL means the amount of Compensation deferred by a Participant during a calendar vear of Compensation and ant- contributions by the Plan Sponsor to the Participant's account. (e) BENEFICIARY means the person(s) properly designated by a Participant under Section 8.01 Designation of Beneficiary, or, if none, the Participant's estate, which is entitled to receive benefits raider the Plan after the death of the Participant. (f) COMPENSATION means all cash compensation for services to the Plan Sponsor, including salarv, wages, fees, commissions, bonuses, and overripe pav that is includible in the Public Emplovee's gross income for the calendar vear, plus amounts that would be cash Compensation for services to the Plan Sponsor includible in the Public Employee's gross income for the calendar vear hot for a ComPensation reduction election under IRC Sections 125, 132(f), 401(k), 4030n), or 4570n), including an election to defer Compensation under .article 11 Election to Defer Compensation of the Plan. (g) ELIGIBLE RETIREMENT PLAN means an individual retirement account described in IRC Section 408(1), individual retirement annuity described in IRC Section 408(3), a qualified trust described in IRC Section 401(1), un anntut- plan described in IRC Section 403(a) or 403(b), or air eligible governmental plan described in IRC Section 457(b). © Nndomcide Retirement Solu[ions, Inc. 1 Consolidnmd Standard 457 Plan 457(b) Grn-evnmen[al Plan Dxumen[ NRI-0103AO-0306 (It) ELIGIBLE ROLLOVER ACCOUNT means the separate bookkeeping account(s) maintained by the Administrator within the Plan for a Participant for amounts of eligible rollover contributions under Section 6.01 Eligible Rollover Contributions to the Plan. (i) ELIGIBLE ROLLOVER DISTRIBUTION means an Eligible Rollover Distribution as defined in IRC Section 402(c)(4), including Eligible Rollover Distributions to a surviving Spouse under IRC Section 402(c)(9). O INCLUDIBLE COMPENSATION means a Public Emplovee's actual wages un box 1 of Form N-2 fora given vear for services performed for the Plan Sponsor, but subject to a maximum of S200,000 (or such higher maximum as may apply under IRC Section 401(e)(17)) and increased (up to the dollar maximum) by any Compensation reduction election under IRC Sections 125, 132(f), 401(k), 4030n), or 457(h), including an election to defer Compensation under Section 2.02 Election Required for Participation. (k) INDEPENDENT CONTRACTOR means anv person receiving anv type of Compensation from the Plan Sponsor or any of its agencies, departments, subdivisions or instrumentalities for which services are rendered pursuant to one or more written or oral contracts, if such a person is not a Public Emplovec. (1) IRC means the Internal Revenue Code of 1986, as now in effect or as hereafter amended. All citations to sections of the Code are to suchh-sections as they mac from time to time be amended or renumbered. (m) NORMAL RETIREMENT AGE means any age that is on or after the earlier of age 65 or the age at which Participants have the right to retire and receive, under the basic defined benefit pension plan of the emplover (or a tnonev purchase plan in which the Participant also participates if the Participant is not eligible to participate in a defined benefit plan), immediate retirement benefits without actuarial or similar reduction because of retirement before some later specified age. However, the Normal Retirement ,Age shall not be later than age 70'/2. Alternatively, a Plan may provide that a Participant is allowed to designate a Normal Retirement Age within these ages. For purposes of the special Section 457 catch-up in Section 3.03 Special Section 457 Catch-up Luniration, an entity sponsorlLg more than one eligible plan shall not permit a Participant to have more than one Normal Retirement Age under the eligible plans it sponsors. Special Rule for Eligible Plans of Qualified Police or Firefighters. An eligible plan with Participants that include qualified police or firefighters as defined under IRC Section 415(3)(2)(H)(ii)(I) may designate a Normal Retirement Age for such qualified police and firefighters that is earner than the earliest Normal Retirement Age designated under the general rule above, but in no event may the Normal Retirement Age be earlier than age 40. Alternariveiv, a Plan mac allow a qualified police or firefighter Participant to designate a Normal Retirement Age that is between age 40 and agek70 t/z. (n) PARTICIPANT means an individual who is currenth- deferring Compensation or who has previously deferred Compensation under the Plan by salary- reduction and who has not received a distribution of his entire .Account Balance under the Plan. Only individuals who perform services for the Plan Sponsor as a Public Employee or Independent Contractor may defer Compensation under the Plan. O Kitio,i,,& Rm,,i,ent Solutions. Inc. Consolidated Stnndnrd 457 Plan 457(b) Govemmattal Plan Document (o) PARTICIPATION AGREEMENT means the application to enroll and participate in the Plan that is completed ba the Public Employee and provided to the Administrator. The Participation A(nreennent form for this purpose shall be provided by the Administrator and will have no effect until it is signed, filed with the Administrator be the Participant, and accepted be the Administrator prior to the Participant's death. (p) PLAN means the Plan for Public Employees as set forth in this plan document and as it may be amended from time to time. (q) PLAN SPONSOR means the counn., numicipalin-, or other instrumentality of the State, which is an efigible governmental employer pursuant to MC Section 457(e)(1), for which services are performed by Public Employees, and which participates in this Plan. (r) PLAN YEAR means- the calendar year in which the Plan becomes effective, and each succecdix„* calendar year during the existence of the Plan. (s) PUBLIC EMPLOYEE means am- person who receives any type of Compensation from the Plan Sponsor for services rendered to the Plan Sponsor (including, but not limited to, elected or appointed officials and salaried employees). (t) SEVERANCE FROM EMPLOYMENT means the date on which the Participant dies, retires or otherwise has a Severance from Employment with the Plan Sponsor. An Independent Contractor is considered to have a Severance from Employment with the Plan Sponsor upon the expiration of the contract (or in the case of more than one contract, all contracts) under which services are performed for the Plan Sponsor if the expiration constitutes a good -faith and complete termination of the contractual relationship. An Independent Contractor shall not be considered Severed from Employment with the Plan Sponsor, and shall not receive anv benefits hereunder unless (i) at least 12 months have expired since the date on which the last contract pursuant to which the Independent Contractor provided anv services to the Plan Sponsor was terminated, and (it) the Independent Contractor has performed no services for the Plan Sponsor during the 12-month period referred to herein either as an Independent Contractor or Public Employee. (u) SPOUSE means a person of the opposite sex who is a husband or wife, as defined under'fitle 28, Chapter 15, Section t738 of the United States Code. (v) VALUATION DATE means each business day/the last day of the calendar month the last day of the calendar quarter/each December 31. 1.02 Gender and Plurals. Whenever used herein, the masculine gender shall include the feminine and the singular shall include the plural unless the provisions of the Plan specifically require a different construction. ARTICLE II Election to Defer Compensation 2.01 Eligibility to Participate. Each Public Employee shall be eligible to participate in the Plan and defer Compensation hereunder immediately upon becoming employed by the Plan Sponsor. 2.02 Election Required for Participation. A Public Employee may elect to become a Participant by executing a Participation Agreement and consenting to defer a portion of his Compensation be a 3 Naeon atde HCtlrCmC11t SVInt10nS, Inc. Consoh6red Snndad 457 Plnn 457(b) G... . .. 1'Inn Document reduction of salan- of the Annual Deferral amount specified in the Participation Agreement, shollm" it, and filing it with the Administrator. A Public Emplovee, by filing the Participation Agreement with the Administrator, agrees to he bound by all the terms and conditions of the Plan. Tire Admnistrator may establish a muhimum deferral amount, and mac change such minimum deferral amounts from time to time. The Participation Agreement shall also include designation of utvestment specifications and a designation of Beuefician-. Failure of the Participant to properh- execute the Participation Agreement will cause auv designation of Beneficiary thereon to he invalid. Anv Beneficiarv- election shall remain in effect until the Participant files an executed amendment with the Administrator pursuant to Section 2.05 Amendment of Participation Elections. 2.03 Information Provided by the Participant. Each Public Employee enroll ng in the Plan should provide to the Plan Sponsor at the time of initial enrollment, and later if there are any changes, am - information necessary or advisable for the Plan Sponsor to administer the Plan, including, without lunhitation, whether the Public Employee is a Participant in anv other eligtible plan under IRC 457(b). 2.04 Commencement of Participation. A Public Emplovee shall become a Participant as soon as administratively practicable following the date the Public Emplovee files a Participation .Agreement pursuant to Section 2.02 Election Required for Participation, or is participating as otherwise permitted hn- law. Such election shall become effective no earlier than the calendar month following the month in which the election is made. However, a new Public Emplovee may defer Compensation payable in the calendar month during which the Participant first becomes a Public Emplovee if a Participation Agreement providing for the deferral is entered into on or before the first day on which the Participant performs services for the Plan Sponsor. 2.05 Amendment of Participation Elections. Subject to other provisions of the Plan, a Participant may at am- time revise his participation election, including changes to his investment direction and changes to his Designated Beneficiary. Changes to the investment direction shall take effect once accepted be the Administrator. 2.06 Amendment of Annual Deferral Election. A Participant mac revoke an election to participate and mac amend the amount of Compensation to he deferred by filing with the Administrator a revocation or amendment on a form and in the procedural manner approved by the Administrator. Anv amendment wlhich increases or decreases the amount of Annual Deferrals for anv pay period shall he effective only if all agreement providing for such an amendment is entered into before the beginning of the month in which the par- period commences. Am- revocation or amendment of the Annual Deferrals shall he effective prospectively only. Any amendment of the _Annual Deferrals, tudess die election specifies a later effective date, shall take effect as of the first day of the next following month or as soon as adminisrrauvel}- practicable, if later. 2.07 Leaves of Absence. Unless a deferral election is otherwise revised, if a Participant is absent from work by leave of absence, Annual Deferrals under the Plan shall continue to the extent that Compensation continues. 2.08 Participant Disability. A disabled Participant may elect to defer Compensation during auv portion of a period of disability to the extent the Participant has actual Compensation (not imputed compensation and not disabilin- henefirs) from which to defer to the Plan and his not had a Severance from Emplovment, as detennnhed by the Plan Sponsor. 2.09 Protection of Persons Who Serve in a Uniformed Service. A Public Employee whose emplon-went is interrupted by qualified military service under IRC Section 414(u) or who is on a leave of absence for qualified military service under IRC Section 414(u) may elect to make additional © Nntionodde Runranent Solutions. Inc. G nssolidn[ed Standard 457 Plan 457(b) Gocemmcntal Plan Document Annual Deferrals upon resumption of emplovment with the Plan Sponsor equal to the maximum Annual Deferrals that the Public Emplovee could have elected during that period if the Public Employee's emplovment with the Plan Sponsor had{ominned (at the same level of Compensation) without the ruerruprion or leave, reduced by the Annual Deferrals, if amp, actuallv made for the Public Emplovee during the period of the ittemiption or leave. This right applies for five (5) vears following the resumption of employment (or, if sooner, for a period equal to three time., the period of the interruption or leave). ARTICLE III Limitations on Amounts Deferred 3.01 Basic Annual Limitation. The maximum amount of the :annual Deferral mnder the Plan for enN calendar year shall not exceed the lesser of (i) the Basic Annual Limitation or (i) the Participant's Includible Compensation for the calendar year_ The Applicable Dollar :Amounris the amount established under IRC Section 457(c)(15) applicable as set forth below: 2002 S11,000 2003 S 12,000 2004 S 13,000 2005: S 14,000 2006: S 15,000, adjusted for cost-of-hvitw after 2006 to the extent provided under IRC Section 415(d). 3.02 Age 50 Catch-up Annual Deferral Contributions. A Participant who will attain age 50 or more bN the end of the calendar year is pertmitted to elect an additional amount of Annual Deferrals, up to the maximum :Age 50 Catch-up Annual Deferrals- for the Near. The maximum dollar amount of the Age 50 Catch-up Annual Deferrals for a year is as follows: 2002 S1,000 2003 S2,000 2004 S3,000 2005: $4,000 2006: $5,000, adjusted for cost -of -living after 2006 to the extent provided under the IRC. 303 Special Section 457 Catch-up Limitation. If the applicable Near is one of a Participant's last 3 calendar vears ending before the vear in which the Participant attains Normal Retirement Age and the amount determined under this Section 3.03 exceeds the amount computed under Sections 3.01 Basic Annual Limitation, and 3.02 Age 50 Catch-up Annual Deferral Contributions, then the !Annual Deferral limit under this Section 3.03 shall be the lesser of: (a) An amount equal to 2 times the Section 3.01 Basic Annual Limitation for such vear, or Sn) 'The sum of: (1) _An amount equal to (_A) the aggregate Section 3.01 Basic Annual Limitation limit for the current vear plus each prior calendar vear beginning after December 31, 2001 during which the Participant was a Public Employee under the Plan, minus (B) the aggregate amount of Compensation that the Participant deferred under the Plan during such years, plus © Natinmelde 2eecement Solutions, Inc. CoosuGdated Standard 457 Plan 457(b) Govemmemnl Plao Document (2) An amount equal to (A) the aggregate hinit referred to in IRC Section 457(b)(2) for each prior calendar vein beginning after December 31, 1978 and before January- L, 2002 during which the Participant was a Public-Emplovee, deternned without regard to Section 3.02 Age 50 Catch-up Annual Deferral Contributions, and this Section 3.03, tninus (B) the 11 aggregate contributions to Pre-2002 Coordination Plans for such years. However, in no event can the a... �regate deferred amounts and contributions be more than the Participant's Compensation for the calendar year. 3.04 Special Rules. For purposes of this .Article III, the following rules shall apply: (a) Participant Covered By More Than One Eligible Plan. If the Participant is or has been a Participant it one or more other eligible plans within the meaning of IRC Section 457(b) for a given year, then this Plan and all such other plans shall be considered as one plan for purposes of applying the foregoing litmitations of this Article III. For this purpose, the Plan Sponsor shall take into account any other such eligible plan established by the Plan Sponsor. (h) Pre- Participation Years. In apph-ing Section 3.03 Special Section 457 Catch-up Limitation, a prior year shall be taken into account only if (i) the Participant was eh ible to participate in the 13hin during all or a portion of the vear and (i) Compensation deferred, if anv, under the Plan during the near was subject to the Basic Annual Limtation described in Section 3.01 or anv other plan ceiling required by IRC Section 4570n). (c) Pre-2002 Coordination Years. For purposes of Section 3.03(b)(2)(I3), "Contributions to Pre- 2002 Coordination Plans" means am- Plan Sponsor contribution, salary reduction or elective contribution under anv other eligible IRC Section 457(n) plan, or a Satan- reduction or elective contribution under anv IRC Section 401(k) qualified cash or deferred arrangement, IRC Section 402(h)(1)(I3) simplified employee pension (SARSFI)), IRC Section 403(b) annuity contract, and IRC Section 403(p) simple retirement account, or under anv plan for which a deduction is allowed because of a contribution to an organization described in IRC Section 501(c)(18), including plans, arrangements or accounts maintained by the Plan Sponsor or any emplover for whom the Participant performed services. However, the contributions for anv calendar vear are onIv taken into account for purposes of Section 3.03(b)(2)(13) to the extent that the total of such contributions does not exceed the aggregate Limit referred to in IRC Section 457(b)(2) for the year. (d) Disregard Excess Deferral. For purposes of Sections 3.01 Basic Annual Limitation, 3.02 Age 50 Catchup Annual Deferral Contributions, and 3.03 Special Section 457 Catch-up Limitation, an individual is treated as not having deferred Compensation under the plan for a prior taxable vear to the extent Excess Deferrals under the Plan are distributed, as described in Section 3.05. To the extent that the combined deferrals for pre-2002 years exceeded the maximum deferral imitations, the amount is treated as a Correction of Excess Deferrals under Section 3.05 for those prior years. 3.05 Correction of Excess Deferrals. (a) If Annual Deferrals credited to a Participant's Account Balance during the current Plan Year exceed the limitations described above as determined by the Plan Sponsor, the Administrator shall return the excess as directed by the Plan Sponsor as soon as adinuristratively practicable after the Administrator is notified that there is an Excess Deferral. © Nauonmi& Rrtimment Solutions, Inc. Consolid=d Smdaal 457 Plan 457(b) Gocemmcnul Pin Donunent (1)) If the Annual Deferral on behalf of a Participant for any calendar Year exceeds the limitations described above as determined by the Plan Sponsor, or the Annual Deferral on behalf of a Participant for any calendar Year exceeds the limitations described above when combined with other amounts deferred by the Participant under another eligible deferred compensation plan pursuant to IRC Section 457(b) then the Annual Deferral, to the extent in excess of the applicable limitation (adjusted for anv income or loss in value, if any, allocable thereto), shall be distributed as soon as administratively practicable by the Administranx at the detertnination and direction of the Plan Sponsor. 3.06 Deferrals After Severance from Employment, Including Sick, Vacation, and Back Pay Under an Eligible Plan. A Participant who has not had a Severance from Employment mac elect to defer accumulated sick Pay, accumulated vacation pay, and back pay under an eligible plan. Such amounts may he deferred for any calendar month only if an agreement providing; for the deferral is entered into before the beginning of the month in which the amounts would otherwise be paid or made available and the Participant is a Public Emplovee on the date the amounts would otherwise be paid or made avaikible, in accordance with Section 2.02 Election Required for Participation, and Section 2.04 Commencement of Participation. In addition, to the extent permitted by law, deferrals may he made for former Public Employees with respect to Compensation described in Treason- Regulation Section 1.415(c)-2(e)(3)(ii) (relating to certain Compensation paid within 2 '/2 months following Severance from Employment), Compensation described in Treasury Regmlation Section 1.415(c)-2(g,.)(4) (relating to Compensation paid to Participants who are permanently and totally disabled), and Compensation relating to qualified military service under IRC Section 414(11). ARTICLE IV Plan Sponsor Contributions 4.01 The Plan Sponsor mac contribute to the Plan for Participants. Plan Sponsor contributions shall vest at the time such contributions are made. For purposes of administering Sections 3.01 Basic Annual Limitation, 3.02 Age 50 Catch-up Annual Deferral CornrrlbmlOns, and 3.03 Special Section 457 Catch-up Limitation, Plan Sponsor contributions shall apph- toward the maximum deferral hints in the Plan Year that such contributions are made. ARTICLE V Distribution of Benefits 5.01 Benefit Distributions at Retirement or Other Severance from Employment. Except for In - Service Distributions from Eligible Rollover Accounts under Section 5.05, Unforeseeable Emergencv withdrawals under Section 5.09, and Nioluntary In -Service Smaller Account Distributions under Section 5.10, or otherwise specificallv allowed by the Plan, distributions from the Plan may not be made to a Participant earlier than: (a) the calendar Year m which the Participant attains age 70 V2; or (b) the calendar vear in which the Participant retires or otherwise has a Severance from Employment. All irrevocable elections of a benefit commencement date by a Participant or a Benefician- made prior to Jarman- 1, 2002 and defaulted distributions (other than a defaulted distribution to an annuin- option) may he voided at the election of die Participant or the Beneficiary. © Nariumcide Rctimm3rz Solutions, Inc. Consolidated Staulurd 457 Plan 457(b) Govenvnenral Plnn Documetrz 5.02 Election of Benefit Commencement Date. A Participant may elect to commence distribution of benefits at am- time after retirement or other Severance from Employment, as determined and confirmed by the Plan Sponsor by a notice filed with the Administrator before the date on which benefits are to commence. However, in no event may distribution of benefits commence later than the date described in Section 5.04(b) Required Beginning Date. 5.03 Forms of Distribution — Benefit Payment Options. Benefits shall be paid in accordance with the payment option elected by the Participant. Payment, method of pavment, and settlement options are available as provided by each of the available investment specifications. The Participant shall elect tine method of pavment based upon the options then available under the Plan, including but not limited to lump sum distributions, periodic pavment by fixed amount, periodic pavment 1w fixed time period, partial lump sum pavment or purchased annwn-. A Participant or Benefician- who has chosen a pavment option, other than the purchased annuity- option, shall have the ability to change his paYMent option subject to any restrictions or limitations unposed he the Plan, the Administrator, in investment option provider, any regulator agena-, or as otherwise required by law. 5.04 Required Minimum Distributions. All distributions under the Plan must comph- with IRC Section 401(a)(9) and the regulations issued thereunder. The provisions of this Section 5.04 will apph- for purposes of determi nung required minimum distributions for calendar nears beginning with the 2003 calendar year. The term Designated Benefician- as used in this Section 5.04 shall have the meaning set forth in Treasure- Regulation Section 1.401(a)(9)4. (a) Requirements of Treasury Regulations Incorporated into Plan. All distributions required under this Section 5.04 will be determined and made in accordance with the Treasun- Regulations under promulgated under IRC Section 401(a)(9). (h) Required Beginning Date. The Participant's entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant's required beginning date, which is to begin no later than April 1 following the calendar year in which the Participant attains age 70 t/s or has a Severance from Emplovment, whichever is later. (c) Death of Participant before Distributions Begin. If the Participant dies before distributions begin, the Participant's entire interest will he distributed, or burin to he distributed, no -later than as follows: (1) If the Participant's Surviving Spouse is the Participant's sole Designated Benefician, distributions to the surviving Spouse will begin by December 31 of the calendar year immediately following the calendar near in which the Participant dies, or by December 31 of the calendar year in which the Participant would have attained age 70 Yz, if later. (2) If the Participant's surviving Spouse is not the Participant's sole Designated Benefician-, distributions to the Designated Benefician- will begin Inc December 31 of the calendar Year immediately following the calendar year in which the Participant died. (3) If there is no Designated Beneficiary as of September 30 of the year following the year of the Participant's death, and there are no other Designated Beneficiaries, the Participant's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant's death. © Natiomeide Retimmcnt Solutions, lie. Cnnsoiidnted Standard 457 Plan 437(b) Goceaimental Plan Documrnr (4) If the Participant's surviving Spouse is the Participant's sole Designated Beneficiary and the suviving Spouse dies after the Participant but before distributions to the sumvhig Spouse begin, this Section 5.04 will apply as if the surviving Spouse were the Participant. (d) Required Minimum Distributions during Participant's Lifetime. During the Participant's lifetime, the tiiininum amount that will be distributed for each distribution caleudar tear is the lesser of: (1) the quotient obtained by dividing die Participant's Account Balance I)v the distribution period ii the Uniform Lifetime Table set forth in Section 1.401(1)(9)-9 of the Treasur- Regulations, usi ig the Participant's age as of the Participant's birthday in the distribution calendar vear; or (2) if the Participant's sole Designated Beneficiarc for the distribution calendar vear is the Participant's Spouse, the quotient obtained be dividing the Participant's Account Balance be the number in the joi it and Last Survivor "fable set forth in Section L401(a)(9)-9 of the Treasun' Regulations, using the Participant's and Spouse's attained ages as of the Participant's and Spouse's bithdays in the distribution calendar Years. (e) Death On of After Date Distributions Begin and Participant Survived by Designated Beneficiary. (1) If the Participant cues on or after the date' distributions burin and there is a Designated Beneficiary, the mininnun amount that will he distributed for each distribution calendar vear after the vear of the Participant's death is the quotient obtained by dividing the Participant's Account Balance by the longer of the remaining life expectancy of the Participant or the remaining life expectancy of the Participant's Designated Beneficiary, determined as follows: The Participant's remaining fife expectancy is calculated using the age of the Participant in the vear of death, reduced by one for each subsequent vear. (2) If the Participant's surviving Spouse is the Participant's sole Designated Beneficiarc, the remairu ig fife expectancy of the surviving Spouse is calculated for each distribution calendar vear after the vear of the Participant's death using the surviving Spouse's age as of the Spouse's birthdav in that year. For distribution calendar years after the year of the surviving Spouse's death, the remaining life expectancv of the sumiving Spouse is calculated using the age of the surviving Spouse as of the Spouse's hithday in the calendar year of the Spouse's death, reduced by one for each subsequent calendar year. (3) .If the Participant's surviving Spouse is not the Participant's sole Designated Beneficiary, the Designated Beuefician's remaining life expectancv is calculated using the age of the Beneficiary- in the year following the year of the Participant's death, reduced by one for each subsequent tear. (4) No Designated Beneficiary-. If the Participant dies on or after the dare distributions begin and there is no Designated Beneficiary as of September 30 of the year after the vear of the Participant's death, the minimum amount that will be distributed, in accordance with Section 8.01 Acceptance of Beneficiary, Designation by Adnninistrator, for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account Balance by the Participant's remaining life expectancy calculated using the age of the Participant in the vear of death, reduced by one for each subsequent vear. © Nauonwidc Re6,em,, t Solutions, Inc. Con, iGdated .S'rmdn,d 437 Plnn 457(b) Govemmenml Plan Document (f) Death before Date Distributions Begin and Participant Survived by Designated Beneficiary. If the Participant dies before the date distributions begun and there is a Designated 11 Beneficiary, the nninunum amount that will he distributed for each distribution calendar pear after the Year of the Participant's death is the quotient obtained hx dividing the Participant's Account Balance bx the remaining life expecnunn- of the Participant's Designated Benefrcian-. (1) No Designated Benefcian-. If the Participant dies before the date distributions begun and there is no Desitimnated Benefrcian. as of September 30 of the Year following the Year of the Participant's death, distribution, in accordance with Section 8.01 Acceptance of Benefician- Designation by Administrator, of the Participant's entire interest will be completed hx December 31 of the calendar vear containing the fifth anniversary of the Participant's death. (g) Death of the Surviving Spouse before Distributions to Surviving Spouse are Required to Begin. If the Participant dies before the date distributions begin, the Participant's surviving Spouse is the Participant's sole Designated Benefcian-, and the surviving Spouse dies before distributions are required to begun, this Section 5.04 will apply as if the surviving Spouse were the Participant. (h) Election of Payment Option. If a Participant or Beneficiary fails to elect a payment option that meets the requirements of IRC Section 401(a)(9), the Administrator will initiate such a distribution. A Participant or Beneficiary who has chosen a payment option, other than an annuiy option, shall have the ability to change his or her payment option. 5.05 Order of Priorities. This Section 5.05 has been prepared in accordance with 'Treasury Regndations promulgated under IRC Section 401(c)(9). To the extent there is a conflict between Section 5.04 or this Section 5.05 and the IRC, the provisions of the IRC and applicable Treasury Regulations shall prevail. For am- calendar vear, a Benefrcian- max elect distribution of a greater amount (not to exceed tine amount of the remaining Account Balance in hell of the amount calculated using the formula set forth in Section 5.04. 5.06 Death Benefit Distributions. If the Participant dies before the benefits to which he is entitled under the Plan have been paid or exhausted, then the remaining benefits payable under the Plan shall he paid to his Designated Benefrcian. 'fine Beneficiary shall have the right to elect the time and form of distribution of such benefits, subject to the Limitations set forth in the Plan. 5.07 Amount of Account Balance. Except as provided in Section 5.03 Forms of Distribution, the amount of anv payment under this Article V shall he based on the amount of the Account Balance on the preceding Valuation Date. 5.08 In -Service Distributions from Eligible Rollover Accounts. If a Participant has an Eligible Rollover Account attributable to eligible rollover contributions to the Plan, the Participant mac at any time elect to receive a distribution of all or any portion of the amount held in the Eligible Rollover _Account. 5.09 Unforeseeable Emergency Distributions. (a) Distribution. If the Participant has an Unforeseeable Emergency before retirement or other Severance from Employment, the Participant mac elect to receive a lump sum distribution equal to the amount requested or, if less, the maximum amount determined by the Administrator to he permitted to be distributed under this Section 5.09. © Nnciumvidc liedremait Sduriuns, Inc 10 Conmlidated Smndnrd 457 Plvn 457(b) Gucecnmenml Plnn DoOnn [ (b) Unforeseeable Emergency Defined. An Unforeseeable Emergency is defined as a severe financial hardship of the Participant resulting from: All illness or accident of tire Participant, the Participant's Spouse, or the Participant's dependent (as defined in IRC Section 152(a)); loss of the Participant's property due to casuals- (including the need to rebuild a home following damage to a home not otherwise covered by homeowner's insurance, e.g., as a result of a natural disaster); the need to pav for the frineral expenses of the Participant's Spouse or dependent (AS defined in IRC Section 152(a)); or other similar exnraordinan- and unforeseeable circumstances arising AS a result of events bevond the control of the Participant, or as otherwise permitted by law. For example, the hmnninent foreclosure of or eviction from the Participant's priman- residenee nnay constitute an Unforeseeable Emergency. In addition, the need to pav for medical expenses, including nun -refundable deductibles, as well as for the cost of prescription drug medication, may constitute an Unforeseeable Emergency. Except as othervise specifically provided in this Section 5.09, neither the purchase of a home nor the pavmenr of college tuition is an Unforeseeable Ennergenc�. (c) Unforeseeable Emergency Distribution Standard. A distribution on account of Unforeseeable Emergency may not be made to the extent that such emergency is or may be relieved through reimbursement or compensation from insurance or otherwise, by liquidation of the Participant's assets, to the extent the liquidation of such assets would not itself cause severe financial hardship, or by cessation of deferrals under the Plan, or as otherwise permitted by law. (d) Distribution Necessary to Satisfy Emergency Need. Distributions because of an Unforeseeable Emergency mac not exceed the amount reasonably necessary to satisf}- the emergency need (which may include any amounts necessary to pat- any federal, state, or local income taxes or penalties reasonably anticipated to result from the distribution). 5.10 Voluntary In -Service Smaller Account Distributions. A Participant who is an active Public Employee of the Plan Sponsor mac request to receive a distribution of the combined total Annual Deferrals under the Plan if the following requirements are met: (a) The Participant's total Annual Deferrals in the Account Balance under the Plan does not exceed S5,000 (or the dollar limit under IRC Section 411 (a)(11), if greater); and (b) The Participant has not previously received a voluntan- in-service smaller account distribution under the Plan; and (c) There have been no Annual Deferrals under the Plan with respect to the Participant during the nvo-year period ending on the date of the hi -service distribution. ARTICLE VI Eligible Rollovers and Plan -to -Plan Transfers 6.01 Eligible Rollover Contributions to the Plan. (a) Incoming Rollover Contributions. A Participant who is a Public Emplovee and who is entitled to receive an Eligible Rollover Distribution from another Eligible Retirement Plan may request to have all or a portion of the Eligible Rollover Distribution paid to the Plan, provided, (1) the Eligible Rollover Distribution is made entirely in the form of U.S. dollars, and, 6-) Nadomdde Roiremcnt Solutions, Inc 11 Gmsohdamd Smnd:md 457 Plnn 457(b) Governmental Plan Docmnem (2) the Participant demonstrates to the Administrator's satisfaction that the amount is a qualifying Eligible Rollover Distribution under IRC Sections 402(c)(4), 403(a)(4), or 408(d)(3). (b) Definition of Eligible Rollover Distribution. For purposes of Section 6.01(a) Incoming Rollover Contributions, an Eligible Rollover Distribution means any contribution of all or into portion of a Participant's benefit under another Eligible Retirement Plan to the Plan, except that an Eligible Rollover Distribution does not include: (1) any instalhnemt payment for a period of 10 years or more, (2) any distribution made as a result of an Unforeseeable Emetgencv, or (3) For anv other distribution, the portion, if anv, of the distribution that is a required tnininnun distribution under IRC Section 401(a)(9). (c) Separate Account for Eligible Rollover Contributions. The Plan shall establish and maintain for the Participant an Eligible Rollover Account for anv Eligible Rollover Distribution paid to the Plan from anv Eligible Retirement Plan that is not an eligible governmental plan under IRC Section 457(b). In addition, the Plain shall establish and minnttin for the Participant an Eligible Rollover Account for anv Eligible Rollover Distribution paid to the Plan from any Eligible Retirement Plan that is an eligible governmental plan under IRC Section 457(b). 6.02 Permissive Rollovers to an Eligible Retirement Plan. A Participant or the surviving Spouse of it Participant (or a Participant's former Spouse who is the Alternate Pavec under a Domestic Relations Order, as defined in IRC Section 414(p)) who is entitled to an Eligible Rollover Distribution may elect, at the time and in the manner prescribed by the Administrator, to have all or am- portion of the distribution paid directly to an Eligrible Retirement Plan specified bi the Participant in it direct rollover. 6.03 Plan -to -Plan Transfers to the Plan of Eligible Governmental 457(b) Assets. (a) Permissive Plan -to -Plan Transfers. At the direction of the Plan Sponsor, the Administrator may permit a class of Participants who are Participants in another eligible governmental IRC Section 457(h) Plan to transfer assets to the Plan as provided herein. Stich it transfer is permitted only if the other Plan provides for the direct transfer of each Participant's interest therein to the Plan. Transfers from other eligible deferred compensation Plans (as defined in IRC Section 457) to the Plan will he accepted at the Participant's request if such transfers are in cash. (h) Effect of Transfers on Annual Deferral Limitations. Any such transferred amount shall not he subject to the linutations of Section 3.01 Basic Annual Limitation, 3.02 Age 50 Catch-up Annual Deferral Contributions, and 3.03 Special Section 457 Catch-up Limitation, as an Annual Deferral, provided however, that the actual amount deferred during the calendar vear under both Plans shall he taken into account in calculating the maximum Annual Deferral for that year. The amount so transferred shall he credited to the Participant's Account Balance and shall be held, accounted for, administered, and otherwise treated in the same manner as an Annual Deferral by the Participant under the Plan. (c) Required Documentation for Transfers to the Plan. The Administrator may require such documentation from the other Plan as it deems necessary to effectuate the transfer in accordance Z3 Nationwide Retirement Solutions, Inc 12 Cnnvolidated Snndud 457 Plan 457(b) Goeemmenml Plan Document with IRC Section 457(e)(10) and Treasury Regulation Section 1.457-10(b) and to confirm that die other Plan is an eligible governmental plan as defined in Treasury Regulation 1.457-2(f). 6.04 Plan -to -Plan Transfers from the Plan to another Eligible Governmental 457(b) Plan. (a) Outgoing Plan -to -Plan Transfers Pursuant to Severance of Employment At the direction of the Plan Sponsor, the Administrator may permit a class of Participants and Beneficiaries to elect to have all or any portion of their Account Balance transferred to another eligible governmental plan within the meaning of IRC Section 457(b) and Treas. Reg. 1.457 2(o. A transfer is permitted under this Section 6.04(a) for a Parricipant only if the Participant has had it Severance front Employment with the Plan Sponsor and is a Public Emplovee of the entity- that maintains the other eligible governmental 4570)) Plan. Further, a transfer is pertitted under this Section 6.04(1) onit- if the other eligible governmental 457(b) plan provides for the acceptance of plan -to -plan transfers with respect to the Participants and Beneficiaries and for each Participant and Beneficiary to have an amount deferred under the other plan immediately after the transfer at least equal to the amount transferred. (b) Outgoing Plan -to -Plan Transfers While Employed. If the Plan Sponsor offers an eligible governmental 457(b) plan other than the Plan, and such other plan accepts transfers, the Participant may transfer the Account Balance in cash from the Plan to the other plan. (c) Limitation of Liability. Upon the transfer of assets under this Section 6.04, the Plau's liability to pay benefits to the Participant or Beneficiar- under this Plan shall be discharged to the extent of the amount so transferred for the Participant or Beneficiary. The Administrator may require such documentation from the receiving plan as it deenhs appropriate or necessary to comply with this Section 6.04 (for example, to confirm that the receiving plan is a❑ eligible governmental plan under paragraph (a) of this Section 6.04, and to assure that the transfer is permitted under the receiving plan) or to effectuate the transfer pursuant to Treas. Reg. 1.457-10(b). 6.05 - Permissive Service Credit Transfers. (a) If a Participant or Beneficiar* is also a Participant in a tax -qualified defnhed benefit governmental plan (as defined in IRC Section 414(d)) that provides for the acceptance of plan -to -plan transfers with respect to the Participant or Beneficiary, then the Participant or Beneficiary may elect to have am. portion of the Participant's or Beneficiary's Account Balance transferred to the defined benefit governmental plan. A transfer under this Section 6.05(a) will not be treated as a distribution and, therefore, may be made before the Participant has had a Severance from Employment. (b) A transfer may be made under Section 6.05(a) only if the transfer is either for the purchase of permissive service credits (as defined in section 415(n)(3)(A)) under the receiving defined benefit governmental plan or a repayment to which IRC Section 415 does not apply by reason of IRC Section 415(k)(3). ARTICLE VII Domestic Relations Orders 7.01 Receipt of Domestic Relations Orders. When the Plan Sponsor, Administrator, or Plan receives a Domestic Relations Order (DRO), judgment, decree, or order (including approval of a propern, settlement agreement) that relates to the provision of child support, alimony payments, or the marital © Nadonuide Retirement Solutions, Inc 13 Conssilidated Standard 457 1'1au 457(b) Gocernmenml Plan Documin propern- rights of a Spouse or former Spouse, child, or other dependent of a Participant is made pursuant to the domestic relations law of any State, then the amount of the Participant's Account Balance shall be paid in the manner and to the person or persons so directed in the DRO as the Alternate Payee. Such payment shall be made without regard to whether the Participant is eligible for a distribution of benefits under the Plan. The Administrator shall establish reasonable procedures for determining the stains of any such decree or order and for effecmatuhti distribution pursuant to the DRO. Upon receipt of a DRO: (a) The Administrator shall notify the Participant and Alternate Payee of the receipt of the DRO, and (b) Within a reasonable tune, the Administrator will follow the procedures adopted by the Plan Sponsor to determine the vandin- of the DRO. In the event the Administrator believes that the DRO is acceptable, it will process the DRO in accordance with the Administrator's procedures. If the DRO dues not appear to he acceptable, the Administrator may contact the Plain Sponsor for a final determination and uhstruction regarding final disposition of the DRO. 7.02 Validity of a DRO. For purposes of this Article VII, a valid DRO is a jud. tent, decree, order, or approval of a marital propern- settlement made pursuant to a state domestic relations law (including communin- property law), relating to the propern- rights of a Participant and Alternate Payee. In addition, the DRO must. (a) Create or recognize the existence of the right of an Alternate Pavee to all or a portion of the benefits payable with respect to a Participant under the Plan; (b) Clearly specify the following information: (I) The name and last known mailing address of the Participant and Alternate Payee covered by the DRO; and (2) The amount or percentage, or the manner in which the amount or percentage is to be determined, of the Participant's benefits to he paid to the Alternate Paver, and (3) The number of payments or period to which the DRO applies; and (4) The Plan to which such DRO applies. (c) Provide a form of payment to the .Alternate Payee that is permitted under the Plan; and, (d) Not require the payment of benefits to an Alternate Payee which are required by a prior DRO to be paid to another Alternate Payee. 7.03 Processing of a DRO. If it has been determined that a DRO applies to a Participant's account, unless specifically directed otherwise by the Plan Sponsor, the Administrator shall comply with the DRO. The Administrator may place a restrictive hold on a Participant's Account Balance while it determines the validity of, and/or processes a DRO. The Administrator shall establish a separate Account Balance for the Alternate Pavee and transfer the assipmed value or benefit from the Participant's account into the Alternate Pavee's separate Account Balance. © Nntiomcide Retirement Solutions, Inc 14 Consohdamd Smndard 457 Plan 457(b) Go,,,,mental Plmt Document 7.04 Rights of an Alternate Payee to Receive Distributions. The Alternate Pavee is entitled to receive distributions immediately upon the establishment of the separate Account Balance pursuant to Section 7.03 Processing of a DRO. Commencement of distributions must begun no later than April 1" following the vear in which the Alternate Payee attains age 70 Yz. Distributions made to an Alternate Payee are reported as taxable income to the Alternate Payee in the calendar year in which the distributions are received by the Alternate Pavee. State taxes, if applicable, and federal taxes will be withheld from anv distribution on the Alternate Payee's Account Balance based upon the tax withholding elections of the Alternate Pavee. The Alternate Pavee mac not make anv contributions to the account but is permitted to designate Beneficiaries for the Account Balance and to exercise exchanges among the investment options as permitted by the Plan. 7.05 No Liability for Prior Distributions. In the event that it is determined that a DRO is valid and the Participant has begun receiving distributions from the Plan, the Alternate Pavee must commence distributions within sixn- (60) days following the date the DRO is determined to be valid. The Administrator shall only process a DRO to the extent possible based upon the then current value or benefit in the Participant's .Account Balance. ARTICLE VIII Designation of BENEFICIARY 8.01 Acceptance of Beneficiary Designation by Administrator. The Participant shall have the right to File with the Administrator, a signed, written benefician- or change of beneficiary form designating the person or persons who shall receive the benefits pavable under the Plan in the event of the Participant's death. If the Participant dies without having a valid benefician- form on file, the benefits will be paid to the Participant's estate or as otherwise required by applicable state law. A change in the Beneficiary designation shall take effect when the election is accepted bn- the Administrator, and must be on a form and in the procedural manner approved by the Administrator. 8.03 Participant Obligation to File Beneficiary Designation Form. The Participant accepts and acknowledges that he has the burden of executing and filing with the Administrator prior to the Participant's death a proper beneficiary- designation forth. ARTICLE IX Investment of Deferred Amounts 9.01 Designation for Investment. Deferred Compensation amounts shall he delivered by the Plan Sponsor to the Administrator or its designated agent for investment pursuant to the Participant's, Beneficiares, or Alternate Payee's investment specifications. 9.03 Participant's Investment Specifications. The Plan Sponsor shall use the Participant's, Beneficiary's, or _Alternate Payee's investment specifications to determine the value of anv deferred compensation account and/or Eligible Rollover Account maintained with respect to the Participant as if the amounts had been invested according to such specifications. Amy change in the investment direction, whether it applies to amounts previously deferred, contributed, rolled over, or transferred, or amounts to be deferred, contributed, rolled over, or transferred in the future, shall only be effective prospectively and shall be effective on a date consistent with, in conformance with, and subject to any restrictions, limitations, or fees imposed by [lie Plan Sponsor, the Administrator, an investment option provider, anv regulatory, agency, or as otherwise required by law. © Nndonwide ons, Inc 15 Quteohd.=d Staudaed 457 Plan 457(b) Governmental Plan Documen After the death of the Participant, the Participant's Designated Benefician- shall have the right to amend the Participant's, or the Beneficiarv's, own investment direction bt- signing and filing with the Administrator an amendment on a form and in the procedural manner approved by the Administrator. Am- change in an investment direction by a Benefieiar- shall be effective or a date consistent with, in conformance with, and subject to am- restrictions, limitations, or fees imposed Iry the Plan Sponsor, the Administrator, an investment option provider, anv rcgulaton, 1wencv, or as otherwise required by law. 9.03 Participant Account Credits and Debits. All interest, dividends, charges for premiums and administrative expenses, and changes in value due to market fluctuations applicable to each Participant's Account Balance shall be credited or debited to the account. All dividends will be reinvested in the associated investment ()prior. 9.04 Limitations on Transfers and Exchanges. The Plan Sponsor and the Administrator may adopt rules and procedures to govern Participant elections and directions concerning a Participant's, Benefician-'s, or Alternate Payee's investment specifications and man- impose limitations or transfers and exchanges from one investment option with the Plan to another. These rules and procedures shall be in addition to anv established by investment providers to the Plan. The Plan Sponsor and the Administrator may decline to implement any 'investment instructions for a Participant, Berefician-, or Alternate Pavice where rhev deem appropriare. ARTICLE X Administration of Plan 10.01 Exclusive Benefit of Participants and Beneficiaries. The Plan Sponsor may at anv time amend, modifv or terminate the Plan under Section 13.01 Amendment and Termination, without the consent of the Participant (or am- Benefician- or Alternate Payee thereof); provided, however, that the assets of the Plan shall be held for the exclusive benefit of Participants and Beneficiaries at all titres. 10.02 No Third Party Interest in Plan. Auv companies that may issue arc policies, contracts, or other forms of investment media used by the Plan Sponsor or specified by the Participant, are not parties to this Plan and such companies shall have no responsibility- or accounenbilin- to am- Participant, Benefieiar-, or Alternate Payee with regard to the operation of this Plan. 10.03 Tax Consequences of Participation in Plan. The Plan Sponsor and the Administrator do not represent or guarantee that any particular Federal or State income, payroll, personal propern-, or other tax consequence will occur because of participation in this Plan. The Participant, Beneficiary, or alternate Pavee should consult with his own representative regarding all questions of Federal and Stare income, payroll, personal property-, or other tax consequences arising from participation in this Plan. 10.04 Appointment of Agents. The Admiristrator shall have the power to appoint agents to act for and in the adnninistration of this Plan and to select depositories for the assets of this Plan. 10.05 Construction. This Plan shall be construed, administered, and enforced according to the Constitution, laws of the state in which the Plan Sponsor resides, and the IRC. 10.06 Total Agreement. This Plan and anv properly adopted amendment or modification shall construee the total agreement or contract between the Plan Sponsor and the Participant regarding the Plan. No oral statement regarding the Plan may lie relied upon hp the Participant. 'I) hatiumcid. Itedmment Soli nuns, Inc. 16 CunsoGdntnl Stm,derd 457 Mini 437(b) Gn-ernmentel Pl,,n Dnannent 10.07 Effect of Adopted Plan Amendment. This Plan and auv properly adopted amendment or modification shall he buidnn7 on the parties hereto and their respective heirs, administrators, trustees, successors, and assimiees and oil all Participants, Beneficiaries, and Alternate Pavees. ARTICLE XI Authority of Plan Sponsor and Administrator 11.01 Authority Binding on Participants, Beneficiaries, and Alternate Payees. The Plan Sponsor, the Administrator, or their respective agents shall he authorized to resolve anv questions of fact necessary to decide the Participant's right under this Plan and such decision shall be binding on the Participant, Beneficiarv, and any Alternate Pavee, provided, however, that assets of the Plan shall he held for the exclusive henefrt of Participants and Beneficiaries at all times. 11.02 Authority to Interpret Plan. The Plan Sponsor, the Administrator, or their respective agents shall he authorized to construe the Plan and to resolve any ambiguin- in the Plan. 11M3 Investment Losses. The Participant specifically agrees not to seek recovery against the Plan Sponsor, the Administrator or anv other employee, contractee, or agent of the Kill Sponsor or Administrator for anv loss sustained by a Parricipant, a Beneficiary, or an Alternate P;o ee for the non-performance of their duties, negligence, or am- other misconduct of the above -named persons, except that this paragraph shall not excuse fraud or wrongftd taking by anv person. 11.03 Suspension of Benefit Payments. The Plan Sponsor, the Administrator, or their respective agents, if in doubt concerning the correctness of their action in making a pavment of a benefit, may suspend the pavment until satisfied as to the correctness of the pavnhent or the identity- of the person to receive the pavment or allow the filing in anv State court of competent jurisdiction, a suit in such form as thev consider appropriate for a legal determination of the benefits to he paid and the persons to receive them. The Plan Sponsor shall comply with the final orders of the court in an%- such suit and all Participants, Beneficiaries, and Alternate Pavees consent to he bound thereby insofar as it affects the benefits payable under this Plan or the method or manner of payment. 11.05 Hold Harmless. The Plan Sponsor, the Administrator, and their respective agrents are hereby held harmless from all court costs and all clahns for the attornev's fees arising frotn any action brought bi tiny Parricipant, Beneficiarv, or Alternate Payee under this Plan or to enforce his rights under this Plan, including auv amendment, modification or termination hereof. 11.06 Litigation. The Administrator shall not he required to participate it, any litigation concerning the Plan except upon written denhand from the Plan Sponsor. The Adnnhhisnrator mac compromise, adjust or effect settlement of litigation when specifically instructed to do so by tine Plan Sponsor. 11.07 Exclusive Benefit of Participants and Beneficiaries. Notwithstanding anv contrary provision of the Plan, including anv annuity contract issued under the Plan, in accordance with IRC Section 457(g), all amounts of Compensation deferred pursuant to the Plan, all property' and rights purchased With such amounts, and all income attributable to such account, property-, or rights shall he held for the exclusive benefit of Participants and Beneficiaries under the Plan and shall he held in a trust, ih an annuity- contract, as defined in IRC Section 401(0, or in one or more custodial accounts. For purposes of this paragraph: (a) a trust must he established under the Plan pursuant to a written agreement that constitutes a valid nest under the law of the state in which the Plan Sponsor is located, C Nationwide Retirement Solutions, Inc. 17 Consolidated Standard 457 flan 457(b) Gocemmennl Ph, Document (b) an annuin� contract shall be issued by an insurance compam- qualified to do business in the state where the contract was issued and tnav not include am- life, health or accident, propern- casualn- or liability insurance contract, and (c) the custodian of anv custodial account created pursuant to this Plan must be a bank, as described in IRC Section 408(n), or a person who meets the non -bank trustee requirements of paragraphs (2)-(0) of Section 1.408-2(e) of the Income Tax Regulations relating to the use of non -bank trustees. ARTICLE XII Miscellaneous 12.01 Non -Assignability. Except as provided in Article VII and Section 12.02 IRS Levi-, the interests of each Participant and Beneficiary under the Plan are not subject to the claims of the Participant's or Beneficiin-'s creditors; and neither the Participant nor any Beneficiary shall have anv right to sell, assign, transfer, or otherwise convev the right to receive any payments hereunder or anv interest under the Plan, which pavments and interest are expressh- declared to be non -assignable and non- transferable. Furthermore, in accordance Section 522 of the Bankruptcy Abuse Protection and Consumer Protection Act of 2005 (`the Act"), retirement funds that are in a fund that is exempt from taxation under IRC Section 457 may be exempted from an individual's property- estate for purposes of the act. 12.02 IRS Levy. Notwithstanding Section 12.01 Nun -Assignability-, the Administrator may pay from a Participant's, Benefrciar-'s, or Alternate Payee's Account Balance the amount that the Adrnitnistrator finds is lawfully demanded under a levy issued by the Internal Revenue Service with respect to that Participant, Beneficiarv, or Alternate Payee or is sought to be collected by the United States Government under a judgment resulting from an unpaid tax assessment against the Participant, Beneficiarv, or Alternate Pavee. 12.03 Mistaken Contributions. If any contribution (or anv portion of a contribution) is made to the Plan by a good faith mistake of fact, then within one vear after the payment of the contribution, and upon receipt in good order of a proper request approved by the Administrator, the amount of the mistaken contribution (adjusted for any income or loss in value, if any, allocable thereto) shall be returned directly to the Participant or, to the extent required or permitted by the Administrator, to the Employer. ARTICLE XIII Amendment and Termination 13.01 Amendment and Termination. The Plan Sponsor may at any time modify, annelid, suspend, or terminate the Plan m whole or in part (including retroactive amendments) or cease deferring Compensation pursuant to the Plan for some or all Participants. In the event of such an action, the Plan Sponsor shall deliver to each affected Participant a notice of such modification, amendment, or termination or a notice that it shall cease deferring Compensation; provided, however, that the Plan Sponsor shall not have the right to reduce or affect the value of am- Participant's Account Balance or any rights accrued under the Plan prior to such modification, amendment, termination, or cessation. 13.02 No Effect of Plan on Employment of Participants. Neither the establishment of the Plan nor any modification thereof, nor the establishment of an account, nor anv agreement between the Plan Sponsor and the Administrator nor the payment of any benefits, shall be construed as giving to anv Participant or other person any legal or equitable right against the Plan Sponsor except as herein © Natirnnvid, Retirement Solutions, Inc 18 Cunsolidnted Standard 157 Plan 457(b) Go,em, aual Plan Document provided, and ni no event shall the terms of employment of the Public Employee, Independent Contractor, or Participaor be modified or in anv wav affected. 13.03 Interpretation. This Plan is intended to be an eligible deferred compensation Plan under IRC Section 457, and shall be i iterpreted and adirmtistered ur a manner consistent with the IRC. This Plan mar' be amended to the extent that it may be necessarc to conform the Plan to the requirements of IRC Section 457 and any other applicable laxv, regulation, or mltaig, utcluding amendments that are retroactive to the effective date of the Plan. 11, the event that the Plan is deemed by the Internal Revenue Service to be administered ur a manner inconsistent with the Internal Revenue Code, the Plan Sponsor shall correct such administration. © Nationwide Retirement Solutions, Inc 19 Gvxolidated S,m da,d 457 Plan 457(b) Governmental Plan Document ARTICLE XIV Prior Plan If the Plan Sponsor has already accepted and adopted the Plan (the "Prior Plan'), as defined by IRC Section 457, then the Plan Sponsor attends that this Plan shall amend and restate the Prior Plan. In such event, this Plan shall apply to all Participants in the Prior Plan on the effective date hereof, and also to each Public Employee who elects to participate in this Plan on and after the effective date hereof. ARTICLE XV Effective Date This Plan shall be effective on the date and year written below. IN WITNESS WHEREOF, the undersititted has executed this Plan this / dayr,f i ai00% Bv: (sifmamxe) C�ora�2, daonpheJ1 (printed name) �i/fU Q�12 (a (title/role) I Please retain this copy for your records. O Nationwide Fteriremart Solutions, Inc 70 Consolidated Smndard 457 Ilan 4570b) Governmental Plan Document ARTICLE XIV Prior Plan If the Plan Sponsor has aheedv accepted and adopted the Plan (the "Prior Plan"), as defined by IRC Section 457, then the Plan Sponsor intends that this Plan shall intend and restate the Prior Plan_ In such event, this Plan shall apple to all Participants in the Prior Plan on the effective date hereof, and also to each Public Eiriplovee who elects to participate in this Plan on and after the effective date hereof. ARTICLE XV Effective Date This Plan shall be effective on die date and vear written below. IN WITNESS WHEREOF, the undersigned has executed this Plan this /71/7 davof /�ti/%�/� I—R©Q / Bv: (silnhature) George L. dalkabe-/l (printed name) (title/role) V (Plan Name) (J r,-. d _ 0/tiro/�5a�/�n APPROVED AS TO FORM: / - CITY ATTORNEY PI-9 r 6'/ n CITY OF DENTON, TEXAS r BY: /. Please tear out this page and return to Nationwide Retirement Solutions. © N. w,,n,ide Retirement Solutions, Inc. 1 Consolidated Stnndnrd 457 Plan 457(b) Gos-emmennl Plan Document