HomeMy WebLinkAbout1057_OkMRFTULSA COUNTY CLERK - PAT KEY
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OF OWASSO
ORDINANCE 1057
AN ORDINANCE AMENDING THE EMPLOYEE RETIREMENT SYSTEM, DEFINED
CONTRIBUTION PLAN FOR THE CITY OF OWASSO, OKLAHOMA BY ADOPTING A
REVISED AND RESTATED RETIREMENT PLAN; PROVIDING RETIREMENT BENEFITS FOR
ELIGIBLE EMPLOYEES OF THE CITY OF OWASSO, OKLAHOMA; PROVIDING FOR
PURPOSE AND ORGANIZATION; PROVIDING FOR DEFINITIONS; PROVIDING FOR
ELIGIBILITY AND PARTICIPATION; PROVIDING FOR NON - ALIENATION OF BENEFITS;
LOSS OF BENEFITS FOR CAUSE AND LIMITATIONS OF BENEFITS; PROVIDING FOR
EMPLOYER AND EMPLOYEE CONTRIBUTIONS; PROVIDING FOR ACCOUNTING,
ALLOCATION, AND VALUATION; PROVIDING BENEFITS; PROVIDING FOR REQUIRED
NOTICE; PROVIDING FOR AMENDMENTS AND TERMINATION; PROVIDING FOR
TRANSFER TO AND FROM OTHER PLANS; CREATING A RETIREMENT COMMITTEE AND
PROVIDING FOR POWERS, DUTIES, AND RIGHTS OF RETIREMENT COMMITTEE;
PROVIDING FOR PAYMENT OF CERTAIN OBLIGATIONS; PROVIDING FOR DURATION
AND PAYMENT OF EXPENSES; PROVIDING FOR EFFECTIVE DATE; PROVIDING FOR
VESTING SCHEDULES; PROVIDING FOR A FUND TO FINANCE THE SYSTEM TO BE
POOLED WITH OTHER INCORPORATED CITIES, TOWNS AND THEIR AGENCIES AND
INSTRUMENTALITIES FOR PURPOSES OF ADMINISTRATION, MANAGEMENT, AND
INVESTMENT AS PART OF THE OKLAHOMA MUNICIPAL RETIREMENT FUND;
PROVIDING FOR PAYMENT OF ALL CONTRIBUTIONS UNDER THE SYSTEM TO THE
OKLAHOMA MUNICIPAL RETIREMENT FUND FOR MANAGEMENT AND INVESTMENT;
PROVIDING FOR REPEALER AND SEVERABILITY; ADOPTING THOSE AMENDMENTS
MANDATED BY THE INTERNAL REVENUE CODE.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA,
THAT TO WIT:
Section 1. That pursuant to the authority conferred by the laws of the State of
Oklahoma, and for the purpose of encouraging continuity and meritorious service on the part of
City employees and thereby promote public efficiency, there is hereby authorized created,
established, and approved and adopted, effective as of October 1, 2015, the amended and
restated Plan designated "Employee Retirement System of the City of Owasso, Oklahoma,
Defined Contribution Plan," (hereinafter called System), an executed counterpart of which is
marked Exhibit "A" (Joinder Agreement) and Exhibit 'B" (amended and restated plan) and
attached hereto as part hereof.
Section 2. FUND. A fund is hereby provided for the exclusive use and benefit of the
persons entitled to benefits under the System. All contributions to such fund shall be paid over to
and received in trust for such purpose by the City. Such Fund shall be pooled for purposes of
management and investment with similar funds of other incorporated cities, towns, and
municipal trusts in the State of Oklahoma as a part of the Oklahoma Municipal Retirement Fund
in accordance with the trust agreement of the Oklahoma Municipal Retirement Fund, a public
trust. The City shall hold such contributions in the form received, and from time to time pay over
and transfer the same to the Oklahoma Municipal Retirement Fund, as duly authorized and
directed by the Board of Trustees. The Fund shall be nonfiscal and shall not be considered in
computing any levy when the annual estimate is made to the County Excise Board.
Section 3. APPROPRIATIONS. The City of Owasso, Oklahoma, is hereby authorized to
incur the necessary expenses for the establishment, operation, and administration of the System,
and to appropriate and pay the same. In addition, the City of Owasso, Oklahoma, is hereby
authorized to appropriate annually such amounts as are required in addition to employee
contributions to maintain the System and the Fund in accordance with the provisions of the
Defined Contribution Plan. Any appropriation so made to maintain the System and Fund shall
be for deferred wages or salaries, and for the payment of necessary expenses of operation and
administration to be transferred to the trustees of the Oklahoma Municipal Retirement Fund for
such purposes and shall be paid into the Fund when available, to be duly transferred to the
Oklahoma Municipal Retirement Fund.
Section 4. EXECUTION. The Mayor and City Clerk be and they are each hereby
authorized and directed to execute (in counterparts, each of which shall constitute an original)
the System instrument, and to do all other acts and things necessary, advisable, and proper to
put said System and related trust into full force and effect, and to make such changes therein as
may be necessary to qualify the same under Sections 401(a) and 501(a) of the Internal Revenue
Code of the United States. The counterpart attached hereto as Exhibit "A" and Exhibit "B ",
which has been duly executed as aforesaid simultaneously with the passage of this Ordinance
and made a part hereof, is hereby ratified and confirmed in all respects.
This Committee is hereby authorized and directed to proceed immediately on behalf of
the City of Owasso, Oklahoma, to pool and combine the Fund into the Oklahoma Municipal
Retirement Fund as a part thereof, with similar funds of such other cities and towns, for purposes
of pooled management and investment.
Section 5. REPEALER. Any Ordinance inconsistent with the terms and provisions of this
Ordinance is hereby repealed, provided, however, that such repeal shall be only to the extent
of such inconsistency and in all other respects this Ordinance shall be cumulative of other
ordinances regulating and governing the subject matter covered by this Ordinance.
Section 6. SEVERABILITY. If, regardless of cause, any section, subsection, paragraph,
sentence or clause of this Ordinance, including the System as set forth in Exhibit "A" and Exhibit
"B ", is held invalid or to be unconstitutional, the remaining sections, subsections, paragraphs,
sentences, or clauses shall continue in full force and effect and shall be construed thereafter as
being the entire provisions of this Ordinance.
OF 0'
ti�� 9sN
OFFICIAL 0
L
ATTEST:
Sherry Bisho6%City Clerk
(SEAL)
APPROVED AS TO FORM:
L
Julie ombardi, City Attorney
PASSED AND APPROVED this 181n day of August, 2015.
Jeri o erly, Mayor
Exhibit A
OKLAHOMA MUNICIPAL RETIREMENT FUND
MASTER DEFINED CONTRIBUTION PLAN
JOINDER AGREEMENT
City of Owasso, a city, town, agency, instrumentality, or public trust located in the State of Oklahoma, with
its principal office at Owasso, hereby establishes a Defined Contribution Plan to be known as City of
Owasso Plan (the "Plan ") in the form of the Oklahoma Municipal Retirement Fund Master Defined
Contribution Plan.
Except as otherwise provided herein, the definitions in Article II of the Plan apply.
1. Dates.
[ ] This instrument is a new Plan effective _ (date may not be prior to Plan Year of the date of
execution).
[ X ] This instrument is an amendment, restatement and continuation of the Previous Plan, which was
originally effective July 1, 1992. The effective date of this Joinder Agreement is October 1, 2015
(date may not be prior to Plan Year of the date of execution), except as otherwise stated in the Plan
and the Joinder Agreement
2. Employee.
The word "Employee" shall mean:
[ X ] Any person, other than a Leased Employee, who, on or after the Effective Date, is considered to be
a regular full -time employee in accordance with the Employer's standard personnel policies and
practices, and is receiving remuneration for such services rendered to the Employer (including any
elected official and any appointed officer or employee of any department of the Employer, whether
governmental or proprietary in nature), including persons on Authorized Leave of Absence.
Employees shall not include independent contractors. Elected members of the City Council shall
not be considered to be Employees solely by reason of their holding such office.
[ ] Any person, other than a Leased Employee, who, on or after the Effective Date, is considered to be
a regular employee in accordance with the Employer's standard personnel policies and practices
(including part -time, seasonal and temporary employees), and is receiving remuneration for such
services rendered to the Employer (including any elected official and any appointed officer or
employee of any department of the Employer, whether governmental or proprietary in nature),
including persons on Authorized Leave of Absence. Employees shall not include independent
contractors. Elected members of the City Council shall not be considered to be Employees solely
by reason of their holding such office.
[ ] Any person who, [ ] on or after the Effective Date, [ ] as of , holds the position of:
[ ] City Manager, City or Town Administrator, President, Chief Executive Officer, General
Manager, or District Manager, as applicable.
[ ] Assistant City Manager [ ] Chief of Police [ ] Fire Chief
[ ] Department Head or Department Manager
[ ] Finance Director or Chief Financial Officer
[ ] General Counsel or Municipal Attorney [ ] Municipal Judge
[ ] (specify position)
The word "Employee" shall not include:
[) Any person who is currently accruing benefits under any other state or local retirement system.
[ ] Any person in the following position and who is covered under another retirement program or
system approved by the City:
[ j City Manager, City or Town Administrator, President, Chief Executive Officer, General
Manager, or District Manager, as applicable.
[ ] Assistant City Manager [ ] Chief of Police [ ] Fire Chief
[ ] Department Head or Department Manager
[ j Finance Director or Chief Financial Officer
[ ] General Counsel or Municipal Attorney [ ] Municipal Judge
[ ] (specify position)
[ ] Any person who.
3. Entry Date.
Eligible Employees shall commence participation in the Plan: (Select only one)
[ ] months (any number of months up to twelve) after the later of the Employee's Employment
Commencement Date or the date the definition of Employee in Section 2 hereof was met, provided
that the individual has met the definition of Employee in Section 2 hereof throughout such period.
[ X ] On the Employee's Employment Commencement Date. (If the Employer has opted out of
Old Age and Disability Insurance (OADI), this option must be elected).
4. Definition of Compensation.
Compensation shall exclude the item(s) listed below:
[ ] No exclusions.
[ X ] Overtime pay.
[ X ] Bonuses.
[ X ] Commissions.
[ ] Longevity Pay.
[ X ] Severance pay.
X ] Fringe benefits, expense reimbursements, deferred compensation and welfare benefits.
[ X ] Accrued vacation or sick leave paid upon termination of employment and moving expenses.
[ ] Other:
5. Plan Design.
The Employer hereby elects the following Plan design:
[ ] Pick -up Option. Each Employee shall be required to contribute to the Plan _% of his or her
Compensation. These contributions shall be picked up and assumed by the Employer and paid to
the Fund in lieu of contributions by the Participant. No Participant shall have the option of
receiving the contributed amounts directly as Compensation.
[ X ] Thrift Plan Option.
[ X ] A Participant may elect to contribute to the Plan for each Valuation Period an amount which
is at least 1 %, but no more than 2.00% of his Compensation ( "Mandatory Contributions ").
Mandatory Contributions shall be made by payroll deductions. A Participant shall authorize
such deductions in writing on forms approved by, and filed with the Committee.
[ X ] The Employer shall contribute to the Fund an amount equal to 50 % of the total Mandatory
Contributions contributed by Participants.
The Employer contribution shall be allocated in the proportion which the Mandatory Contributions
of each such Participant for such Valuation Period bear to the total Mandatory Contributions
contributed by all such Participants for such Valuation Period. Forfeitures attributable to Employer
contributions under the Thrift Plan Option of this Section 5 shall be used to reduce Employer
contributions under such Option.
[ ] Fixed Option. The Employer shall contribute to the Fund an amount equal to % of the total
covered Compensation of all Participants for the Valuation Period. The Employer contribution
shall be allocated in the proportion which the Compensation of each such Participant for such
Valuation Period bears to the Compensation paid to all such Participants for such Valuation Period.
[ ] Variable Option.
[ ] The Employer intends to make a contribution to the Plan for the benefit of the Participants
for each Valuation Period. The contribution may be varied from year to year by the
Employer. (Select one option below)
[ ] Option A: The Employer contribution shall be allocated in the proportion that each
such Participant's total points awarded bear to the total points awarded to all
Participants with respect to such year. A Participant shall be awarded one point for
each Year of Service.
[ ] Option B: The Employer contribution shall be allocated in the proportion which the
Compensation of each such Participant for such Valuation Period bears to the
Compensation paid to all such Participants for such Valuation Period.
[ ] Option C: A combination of Options A and B in the following ratios: _% for
Option A, and _ % for Option B.
Exhibit A Page 2
[ ] 401(k) Option.
(This Option available only if elected prior to May 1, 1986)
[ ] Participant Deferral Elections shall be allowed under the provisions of Section 4.8 of the
Plan. Participants shall be allowed to defer no more than %n of their Compensation for each
election period.
[ ] Section 4.8(d) of the Plan ( "Roth Elective Deferrals ") shall apply to contributions after
(enter a date later than January 1, 2006, but not earlier than the date the Roth option was
initially adopted), and the Plan will accept a direct rollover from another Roth elective
deferral account under an applicable retirement plan as described in Code Section
402A(e)(1).
[ ] Matching Contribution Option. The Employer shall contribute to the Fund an amount equal to
_% of the Participant's contributions under the Employer's Section 457(b) Deferred
Compensation Plan. The Employer matching contribution shall be limited to _% of the
Participant's Compensation. Forfeitures attributable to Employer matching contributions under
this Matching Contribution Option of Section 5 shall be used to reduce Employer matching
contributions under such Option.
[ ] No Employer Contribution Option.
6. Other Participant Contribution Options.
X ] Voluntary Nondeductible Contributions by Participants shall be allowed under the
provisions of Section 4.4 of the Plan. Notwithstanding anything to the contrary herein and in
the related Oklahoma Municipal Retirement Fund Master Defined Contribution Plan, a
Participant may not withdraw Voluntary Nondeductible Contributions if he has requested
a participant loan or has an established Loan Account.
[ ] A Participant may not withdraw Voluntary Nondeductible Contributions.
[ ] Participants shall not contribute to the Plan.
7. Self- Directed Investments.
[ X ] Are permitted.
( ] Are not permitted.
8. Allocation of Forfeitures Available.
Forfeitures of Employer contributions attributable to the Fixed Option or Variable Option under Section
5 hereof:
[ ] Shall be added to Employer contribution under such Option.
[ X ] Shall reduce the Employer contribution under such Option.
9. Service for Worker's Compensation Period.
If a Participant is on an Authorized Leave of Absence and is receiving worker's compensation during
such Authorized Leave of Absence, such Participant
[ X ] shall be credited with Service for such period for purposes of vesting only and not for purposes of
allocations of Employer Contributions.
(] shall not be credited with Service for such period.
Exhibit A Page 3
10. Vesting.
For purposes of vesting under Section 6.4 of the Plan, the Employer hereby elects the following Option:
[ ] Option A
Years of Service
less than 1
at least 1 but less than 2
at least but less than 3
at least 3 but less than 4
at least 4 but less than 5
at least 5 but less than 6
at least 6 but less than 7
at least 7 but less than 8
at least 8 but less than 9
at least 9 but less than 10
10 or more
[ ] Option C
Years of Service
less than 5
at least but less than 6
at least 6 but less than 7
at least 7 but less than 8
at least 8 but less than 9
at least 9 but less than 10
10 or more
[ X ] Option E
Vested
Percentage
0%
10%
20%
30%
40 %n
50%
60%
70%
80%
90%
100%
Vested
Percentage
0%
50 %n
60%
70%
80%
90%
100%
Forfeited
Percentaee
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Forfeited
Percentaee
100 %
50%
40%
30 %
20%
10 %g
0 %g
[ ] Option B
Years of Service
Less than 3
at least 3 but less than 4
at least 4 but less than 5
at least 5 but less than 6
at least 6 but less than 7
7 or more
[ ] Option D
Years of Service
Immediate 100% Vesting
Vested
Percentage
0%
20%
40%
60%
80%
100%
Vested
Percentaee
100%
Forfeited
Percentaee
100%
80%
60 %
40%
20 %g
0%
Forfeited
Percentaee
0%
The Schedule indicated below (the sum of the Vested Percentage and Forfeited Percentage at each Year of Service must equal
100 %) the vesting schedule must be at least as favorable as one of the safe harbor pre -ERISA schedules. The safe harbor vesting
schedules are:
a. '15-year cliff vesting schedule: The plan provides that a participant is fully vested after 15 years of creditable service
(service can be based on years of employment, years of participation, or other creditable years of service).
b. 20 -year graded vesting schedule: The plan provides that a participant is fully vested based on a graded vesting
schedule of 5 to 20 years of creditable service (service can be based on years of employment, years of participation, or
other creditable years of service).
c. 20-year cliff vestinp, schedule for Qualified public safety employees: 'fi a plan provides that a participant is fully vested
after 20 years of creditable service (service can be based on years of employment, years of participation, or other
creditable years of service). This safe harbor would be available only with respect to the vesting schedule applicable
to a group in which substantially all of the participants are qualified public safety employees (within the meaning of
Section 72(t)(10)(B)).
Option F
To comply with the Internal Revenue Service Regulations promulgated pursuant to the Code
Section 3121(b)(7)(F), Participants who are part -time, seasonal or temporary Employees will have
immediate vesting.
Exhibit A Page 4
Vested
Forfeited
Years of Service
Percentage
Percentaee
less than 1
0
100%
at least 1 but less than 2
0%
100%
at least 2 but less than 3
40%
60%
at least 3 but less than 4
60%
40 %
at least 4 but less than 5
80%
20 %
at least 5 but less than 6
100%
0 %
at least 6 but less than 7
%g
%
at least 7 but less than 8
%
%
at least 8 but less than 9
%
%
at least 9 but less than 10
%
%
10 or more
%
%g
Option F
To comply with the Internal Revenue Service Regulations promulgated pursuant to the Code
Section 3121(b)(7)(F), Participants who are part -time, seasonal or temporary Employees will have
immediate vesting.
Exhibit A Page 4
(If this Option F is elected, one of the other Options above must also be elected for Participants
who are not part -time, seasonal or temporary Employees).
11. Participant Loans.
[ X ] Participant loans shall be offered pursuant to Section 6.14 of the Plan. Provided, however,
notwithstanding the provisions in Section 6.14(a) of the Oklahoma Municipal Retirement
Fund Master Defined Contribution Plan, at such time as it is determined that a Participant
is to receive a loan from the Plan, the loan shall be made from the Participant's applicable
Account in the order and precedence indicated hereafter and such amount shall be
deemed to be credited to the Participant's Loan Account with a corresponding debit to
occur to his Account as of the first day of the month in which such loan occurs: (i) an
Account holding Employer contributions, including "rollover contributions" (other than
Deferred Compensation Contributions, if applicable); (ii) an Account holding Deferred
Compensation Contributions, if applicable; (iii) an account holding Participant
Mandatory Employee contributions; (iv) an account holding Participant Nondeductible
contributions and (v) an Account holding contributions picked up and assumed by the
Employer pursuant to Section 4.7 of this Plan.
[ ] Participant loans shall not be offered.
12. Direct Transfer to Other Retirement Plan.
[ X ] Direct transfer of a Participant's accounts to another defined contribution plan sponsored by the
Employer is not permitted.
[ ] The Accounts of any Participant who (i) is 100% vested in his Accounts in this Plan; (ii) has
ceased to be eligible for participation in this Plan; and (iii) who becomes eligible for participation
in another defined contribution retirement plan sponsored by the Employer (the "Other Retirement
Plan "), shall be directly transferred to the Other Retirement Plan as soon as practicable after the
Plan Administrator provides written direction to the Trustee to such effect in a form acceptable to
the Trustee.
13. Valuation Date. Except with respect to any Special Valuation Date determined in accordance with
Section 5.10, the Valuation Date for the Plan shall be:
[ ] Monthly: Midnight on the last work day of the calendar month.
[ ] Weekly: Midnight on the last work day of the calendar week.
[XI Daily: Beginning effective on the first date reasonably available to the Oklahoma
Municipal Retirement Fund, on each business day of the Plan Year for which Plan assets
are valued on an established market.
Exhibit A Page 5
14. The Employer has consulted with and been advised by its attorney concerning the meaning of the
provisions of the Plan and the effect of entry into the Plan.
IN WITNESS WHEREOF the City of Owasso has caused its corporate seal to be affixed hereto and this
instrument to be duly executed in its name and behalf by its duly authorized officers this _1.0 day of
U s ao15,
City of Owasso
BY IA YsS¢
AA
15. The foregoing Joind r Agreement is hereby approved by the Oklahoma Municipal Retirement Fund this
y day of '90L5'.
Attest:
'N%A
OKLAHOMA MUNIICCCI'�P /�AL RETIREMENT FUND
Title:
Require4, is0o%uresP This Joinder Agreement is to be used only with the Oklahoma Municipal
Retirement• ,4,' ,I Defined Contribution Plan. Failure to properly complete this Joinder Agreement
may result in failure of the Plan to qualify under Code Section 401(a). In accordance with IRS Rev. Proc.
2011 -49, the Volume Submitter Practitioner who has obtained Internal Revenue Service approval of the
Oklahoma Municipal Retirement Fund Master Defined Contribution Plan has authority under the Plan
document to amend the Plan on behalf of adopting employers for certain changes in the Code, regulations,
revenue rulings, other statements published by the Internal Revenue Service, including model, sample or
other required good faith amendments. The Volume Submitter Practitioner will inform adopting
employers of any such amendments or of the discontinuance or abandonment of the volume submitter
plan document. The name, address and telephone number of the Volume Submitter Practitioner are:
McAfee & Taft A Professional Corporation, 211 N. Robinson, Oklahoma City, OK 73102, telephone
(405) 552 -2231. Any inquiries by the adopting employer regarding the adoption of the Plan, the meaning
of Plan provisions, or the effect of the Internal Revenue Service advisory letter on the volume submitter
plan may be directed to the Volume Submitter Practitioner.
Exhibit A Page 6
OKLAHOMA MUNICIPAL RETIREMENT FUND
MASTER DEFINED CONTRIBUTION PLAN
2015 version
0
OKLAHOMA MUNICIPAL RETIREMENT FUND
MASTER DEFINED CONTRIBUTION PLAN
TABLE OF CONTENTS
Page
ARTICLE 1. PURPOSE AND ORGANIZATION .,^°°..°°-~.°^°-..~_.~~.°~^.^.._..~.. 1~1
ll Purpose '-r urnoxe ~—`~^^^`^~^—~^^^^^ ............. ^,. ............................................
..,....l'�
1.2 Parties
—.~...`~.~'~..—,.`~.~.—~.—,..^....—^...---.,...^.^.^..—��-}
ARTICLE 11.
DEFINITIONS AND CONSTRUCTION
.^._..°.~..^,.....^-.....°~~.°.�X-1
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2l T)��odinoo
u
(\
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��v,onot
(b\
` '
�uQn��nxro���ebor
---v .....
(c)
/&mmomo&s\ Forfeited ............ ..................................
~............ —...^....—..}T`l
�D
,��
��d*����
��_~^,,,,,.^.~~~,,,,,,,,^,^~_,~~,.^....^......D^l
/e>
Authorized Leave of Absence ,....—..'_.,^~~~..^^.--.--....}�'l
0D)*mnofiui*xy.......................................................
................... ...... ....................... ��l
hh
`"
��u������ ~~~—^^--^^--``~^`—~~^^`^^^~`^--^^--.~..,.Jl-}
(&)
Catch-Up Cootri6otoos— ....................................
............................................ {-2
(D
Catch-Up Contribution Account ..... ..........................................
..................... l`2
00
City Council ........................................... ......................
.......... ......... ................
(8j
` `
��udo —'-^^^^`~~^^^—^^^^~—``~^~~^^--^^^~~`^^`~~~~...~.--'{1-2
0
,,
�vm��� ~~~,^^,.`,,,'^,~,,^`~__`,,_,'~,,—^~^^..~—.~.
1I-2
(m)
Compensation ..................................... ....................
.......................................... 1-2
(o)
Deductible Participant C0ahr[6otioo...—.....—....^..—.~...'.^^.\}-3
(v)
Deferred Compensation Contributions ...........
.......... ..................................... {1`]
(o\
`^'
I�i�a�Di�v
'...................................... ......................................................................
1\'3
(u\
`^'
8f��cdvu��ut� `^^—^~^^^—`---~^~`^^~---`^—``~^--.......—.{T^3
hdEmployer
.............................................................................................................
11-3
(s)
]ko,ploynuuut Commencement Datw.—,........^,...^^—.—....^..—.
11-3
A\
Entry Date ....................................................................
-............ ....... ............. I-3
h6Forfeiture `-/
^^^^`~^—~^~^^~^^~^^—~`^—'~`~~`-^^^
................................ JT`3
�
, /
�� ,. ............ ,,,._^,,..^__,,^,^ ...........................
............... . ..... ........... 11-3
(Nv)
Investment Manager —,. ......................................
......................... ........ ........ l}-4
(x)
Investment Options ... —^~~^`—``~^^ ........................................
.......... ........ 11-4
�
°,
���� ��
/«�r*�/n ,..^--...--`~.^—`.^~^—'.^.~..~^....--...]T-4
bdLeased
Employee .........................................................................
^.................. T1`4
(aa)
Limitation Year ,...—~~.~^--,...^—.,^--..^~^`~^~—^^^—~~......
(bb)
Loan Account .............. ......... ................
...... .^^^—~^--``~~^^.~—~^^
(cc)
Mandatory Contributions ............. ...................
...................... ........................ 11-4
(dd)
Municipality .......~`^~^^^^^^^~—~^^^—~^^~—~^^^~—`^``^^^`^^~.
(ox)
Municipality Contribution Account .........................
.............. ......... .............. T1-j
+
2.2
(gg) Oklahoma Municipal Retirement Fund . ...............................
(hh) Participant..... .........................-................ ...............................
(ii) Participant Contribution Accounts ........ ...............................
(jj) Participant Deductible Contribution Account .....................
(kk) Participant Deferred Compensation Contribution Account
(11) Participant Mandatory Contribution Account ....................
(mm) Participant Nondeductible Contribution Account ...............
(nn) Participant Rollover Account ................. ...............................
(oo) Participant Roth Contribution Account ...............................
(pp) Participation ............................................. ...............................
(qq) Period(s) of Service or Service ................ ...............................
(rr) Pick -Up Contributions ............................. ...............................
(ss) Pick -Up Contributions Account ............. ...............................
(tt) Plan ............................................................ ...............................
(no) Plan Administrator .................................. ...............................
(vv) Plan Year .................................................. ...............................
(") Previous Plan ............................................ ...............................
(xx) Retirement ................................................ ...............................
(yy) Roth Contributions .................................. ...............................
(zz) Trust Service Provider ............................ ...............................
(aaa) Trustee ...................................................... ...............................
(bbb) Valuation Date .......................................... ...............................
(ccc) Valuation Period ...................................... ...............................
Cnnstrnction
................................ .-
ARTICLE III. ELIGIBILITY AND PARTICIPATION ........................... ..........................III -I
3.1
Eligibility ............. ................................................... ... ................. ........................... ........
III -1
3.2
Entry Date ..................................... ........ .........................................................................
III -1
3.3
Re- employment of Former Participants .......................................... ...............................
III -1
3.4
Re- employment of Retired or Fully Vested Participants ................ ...............................
III -1
ARTICLE
IV. CONTRIBUTIONS ............................................................. ...........................IV
-1
4.1
Contributions by Employer .................... .................. ......................................................
IV -1
4.2
Required Participant Contributions .......................... ......................................................
IV -1
4.3
Mandatory Contributions, ............. ..................................................................... ..........
IV-1
4.4
Voluntary Nondeductible Contributions by Participants .................... ...........................IV
-1
4.5
Change of Rate of Voluntary Nondeductible Contributions by Participant ..................
IV- 1
4.6
Participant Contributions Nonforfeitable .......................................................... .............
IV -2
4.7
Pick -Up Contributions .................................... ............................................. ..................
IV -2
4.8
Deferred Compensation Contributions .................. ........................................................
IV -2
ARTICLE V. ACCOUNTING, ALLOCATION AND VALUATION . ............................... V -1
5.1 Accounts .......................................................................................... ............................... V -1
5.2 Eligibility for Allocation .................................................................. ............................... V -1
5.3 Allocation of Contribution .............................................................. ............................... V -1
5.4 Allocation of Amounts Forfeited ..................................................... ............................... V -1
-ii-
5.5
Value of Account ............................................................................. ...............................
V -1
5.6
Allocation of Investment Earnings and Losses ................................ ...............................
V -1
5.7
Accounting for Participants' Contributions ..................................... ...............................
V -1
5.8
Accounting for Statement of Account ............................................. ...............................
V -1
5.9
Time of Adjustment ......................................................................... ...............................
V -2
5.10
Special Valuation Date .................................................................... ...............................
V -2
5.11
Limitation on Allocation of Employer Contributions. ............ .......................................
V -2
5.12
Investment Options .......................................................................... ...............................
V -5
ARTICLEVI.
BENEFITS ..........................
VI
............................................................................
-1
6.1
Retirement or Disability ..................... ...:................................ ..... ......... ........................
..VI -1
6.2
Deferred Retirement ............................................................................ ...........................VI
-1
63
Death of a Participant ......... ..............................................................................
.............. VI -I
6.4
Termination for Other Reasons - Vested Percentage .................... ............ . ....
... ............. VI -I
6.5
Initial Distribution Date .................................................................. ...............................
VI -1
6.6
Determination of Amounts Forfeited .............................................. ............................-
VI-I
6.7
Participant Contribution Accounts ...............................................................
.................. VI -I
6.8
Withdrawals from Participant's Contribution Accounts ................. ...............................
VI -2
6.9
Withdrawals from Participant's Mandatory Contribution Account ...............................
VI -3
6.10
Methods of Distribution ...................................................................... ...........................VI
-3
6.11
Designation of Beneficiary .......................................................... . .. ...................--
..... -VI -3
6.12
Loss of Benefits for Cause .............................................................. ...............................
VI -4
6.13
Payments Under a Qualified Domestic Relations Order ................ ...............................
VI -4
6.14
Loans to Participants ............................. ..................................................... ....................
VI -5
6.15
Required Minimum Distributions .......... ......................................................................
..VI -7
6.16
Withdrawals from Participant Rollover Account .............................. ..........................VI
-11
6.17
Forfeiture of Benefits .................. .................................................................................
VI -11
ARTICLEVII.
NOTICES ..................................................................... ...............................
VII -I
7.1
Notice to Oklahoma Municipal Retirement Fund ............................ .............................
VII -1
7.2
Subsequent Notices ................... ............. .......................................................................
VII -1
7.3
Copy of Notice ................................................... ...........................................
.. .............. VII -1
7.4
Reliance Upon Notice ...... .................. ....................... ....................... .............
................ VII -1
ARTICLE VIII. AMENDMENT AND TERMINATION.. .......... ................................... VIII-1
8.1 Termination of Plan ...................................................................... ............................... VIII -1
8.2 Suspension and Discontinuance of Contributions ....................... ............................... VIII -1
8.3 Liquidation of "Trust Fund ............................................................ ............................... VIII -1
8.4 Amendments ................................................................................ ............................... VIII -1
8.5 Authority of Volume Submitter Practitioner to Amend for Adopting Employers ..... VIII -2
ARTICLE IX. EMPLOYMENT TRANSFERS ...................................................... .............. IX -1
9.1 Transfers from This Plan ...................................................... .............. ...........................IX -1
9.2 Transfers to This Plan ......................... ..................................... .............................. ........ Ix- I
9.3 Notice of Transfers .................. ... ...................................... .......... ........ ........ ................... IX -2
9.4 Transfer from Other Qualified Plans .................................... ................................. ........ IX -2
-I H-
9.5
Rollover Contributions ........................................................................
...........................IX -2
9.6
Transfer to Other Qualified Plans.... ... ............. ...................................
.................... IX-3
9.7
Rollover to Another Plan or IRA ........................................................
...........................IX -3
9.8
Requirements for Rollover by Individuals ....................................
................................. IX -4
9.9
Transfers From Another Qualified Plan ...... ..................................................................
IX -5
9.10
Procedures ..................................... ....................... ........................................................
..IX -5
ARTICLE X. ADMINISTRATION ............................... ............................... .. .. ........... .... ... . .. X -t
10.1
Administration ................................................................................. ...............................
X -1
10.2
Bonds ............................................................................................... ...............................
X -3
10.3
Benefit Payments ............................................................................. ...............................
X -4
10.4
Abandonment of Benefits ................................................................ ...............................
X -4
10.5
Benefits Payable to Incompetents .................................................... ...............................
X -4
ARTICLEXI. GENERAL ........................................................................... ...........................XI
-1
11.1
USERRA .... ........................................................................ .......................................
..... XI -1
11.2
Not Contract Between Employer and Participant ......... .................... .............................
XI -1
11.3
Payment of Fees ....................................................... ......................................................
XI- 1
11.4
Governing Law ............................................................................... ...............................
XI -1
11.5
Counterpart Execution .............................................................. .. ................................
.... XI -I
11.6
Severability ......................................................................................... ...........................XI
-I
11.7
Spendthrift Provisions ............................ ....... ......... .............. ..........................................
XI- 1
11.8
Maximum Duration ............................................................................. ...........................XI
-2
11.9
Number and Gender ............................................................................ ...........................XI
-2
11.10
Compensation and Expenses of Administration ............................. ...............................
XI -2
11.11
Incorporation of Trust Agreement .................................................. ...............................
XI -2
11.12
Mistake of Fact ............................................................................... ...............................
XI -2
11.13
Written Notices ................................................................................... ...........................XI
-3
-iv-
ARTICLE I.
Purpose and Organization
1.1 Purpose: The purpose of this Plan is to encourage the loyalty and continuity of service
of the Participants, to provide retirement benefits for all eligible Employees of the Employer, as
hereinafter defined, who complete a period of faithful service and become eligible hereunder,
and to qualify the Plan under Section 401(a) and 501(a) of the Code. The benefits provided by
this Plan will be paid from a Fund established by the Employer and will be in addition to the
benefits Employees are entitled to receive under any other programs of the Employer and from
the Federal Social Security Act.
This Plan and the separate related Fund forming a part hereof are established and shall be
maintained for the exclusive benefit of the eligible Employees of the Employer and their
beneficiaries. The design type of this Plan is a profit sharing plan. To the extent this Plan is a
governmental retiree benefit plan under Section 401(a)(24) of the Code, and prior to the
termination of the Plan and satisfaction of all liabilities of the Plan, no part of the corpus or
income of the Fund shall be used for, or diverted to, purposes other than for the exclusive benefit
of the Plan participants and their beneficiaries.
1.2 Parties: The Oklahoma Municipal Retirement Fund hereby adopts and establishes this
Plan for the benefit of Employees of those Employers, as defined herein, formed, chartered or
incorporated under the laws of the State of Oklahoma, who wish to adopt it by executing a
Joinder Agreement which incorporates this Plan by reference.
I -I
ARTICLE 1I.
Definitions and Construction
2.1 Definitions: Where the following words and phrases appear in this Plan, they shall have
the respective meanings set forth below, unless their context clearly indicates to the contrary:
(a) Account: One or more of several records maintained to record the interest in the
Plan of each Participant and Beneficiary, and shall include any or all, where appropriate, of the
following: (i) Municipality Contribution Account, (ii) Participant Deductible Contribution
Account, (iii) Participant Deferred Compensation Contribution Account, (iv) Participant
Mandatory Contribution Account, (v) Participant Nondeductible Contribution Account,
(vi) Participant Roth Contribution Account, (vii) Pick -Up Contribution Account,
(viii) Participant Rollover Account, (ix) Catch -Up Contribution Account, and (x) Loan Account.
(b) Adjustment Factor: The cost of living adjustment factor prescribed by the
Secretary of the Treasury under Section 415(d) of the Code for years beginning after December
31, 1987, as applied to such items and in such manner as the Secretary shall provide.
(c) Amount(s) Forfeited: That portion of a terminated Participant's Municipality
Contribution Account to which such Participant is not entitled because of insufficient Service.
(d) Authorized Agent: The City Clerk of the Employer or such other person
designated by the Employer to carry out the efficient operation of the Plan at the local level.
(e) Authorized Leave of Absence: Any absence authorized by the Employer under
the Employer's standard personnel practices applied to all persons under similar circumstances in
a uniform manner, including any required military service during which a Participant's re-
employment rights are protected by law; provided that he resumes employment with the
Employer within the applicable time period established by the Employer or by law.
(f) Beneficiary: Any person or entity designated or deemed designated by a
Participant as provided in Section 6.11 hereof.
(g) Break in Service: The expiration of ninety (90) days from the date the
Participant last performed Service for the Employer for which such Participant was entitled to
wages as defined in Section 3121(a) of the Code unless the Participant is on Authorized Leave of
Absence. If a Participant does not resume employment with the Employer upon the expiration of
an Authorized Leave of Absence, the Participant will be deemed to be absent from work on the
first day of his Authorized Leave of Absence for purposes of determining if the Participant has a
Break in Service.
For determining the amounts to be forfeited from a Participant's account under
Section 6.6, any periods of employment with the Employer during which the Participant was not
considered an Employee under the Plan shall not be considered as a Break in Service that causes
a forfeiture unless the Participant was covered under a state retirement system or any other
program outside the Oklahoma Municipal Retirement Fund System.
II -1
(h) Catch -Up Contributions: A Participant's contributions described in Section
4.8(c) herein.
(i) Catch -Up Contribution Account: The Account maintained for a Participant in
which any Catch -Up Contributions are recorded.
(j) City Council: The City Council or Board of Trustees of the Employer or other
duly qualified and acting governing authority of the Employer.
(k) Code: The Internal Revenue Code of 1986, as amended from time to time.
(1) Committee: The City Council of the Municipality, which shall act as the Plan
Administrator of the Plan as provided for under Article X hereof.
(m) Compensation: Compensation means wages for federal income tax withholding
purposes, as defined under Code §3401(a), plus all other payments to an Employee in the course of
the Employer's trade or business, for which the Employer must furnish the Employee a written
statement under Code § §6041, 6051 and 6052, but determined without regard to any rules that
limit the remuneration included in wages based on the nature or location of the employment or
services performed (such as the exception for agricultural labor in Code §3401(a)(2)). The
Employer in its Joinder Agreement may specify modifications to the definition of Compensation,
for purposes of contribution allocations under the Plan. For purposes of determining a
Participant's compensation, any election by such Participant to reduce his regular cash
remuneration under Code Sections 125, 40l(k), 414(h), 403(b) or 457 shall be disregarded.
(1) Limitations. Notwithstanding anything herein to the contrary, for Plan
Years commencing after December 31, 1988 and before January 1, 1994, the annual Compensation
of each Participant taken into account under the Plan for any Plan Year shall not exceed $200,000,
as adjusted by the Secretary of the Treasury at the same time and in the same manner as under
Section 415(d) of the Code. In addition to other applicable limitations set forth in the Plan, and
notwithstanding any other provision of the Plan to the contrary, for Plan Years beginning on or
after January 1, 1994, the annual Compensation of each employee taken into account under the
Plan shall not exceed the Omnibus Budget Reconciliation Act of 199' ) ( "OBRA '93 ") annual
compensation limit. The OBRA '93 annual compensation limit is $150,000, as adjusted by the
Commissioner for increases in the cost of living in accordance with Section 401 (a)(I 7)(B) of the
Code. The cost -of- living adjustment in effect for a calendar year applies to any period, not
exceeding 12 months, over which compensation is determined (determination period) beginning in
such calendar year. If a determination period consists of fewer than 12 months, the OBRA '93
annual compensation limit will be multiplied by a fraction, the numerator of which is the number
of months in the determination period, and the denominator of which is 12.
The annual compensation of each Participant taken into account in determining
allocations for any Plan Year beginning after December 31, 2001, shall not exceed $200,000, as
adjusted for cost -of- living increases in accordance with Section 401(a)(17)(B) of the Code.
Annual compensation means compensation during the Plan Year or such other consecutive
12 -month period over which compensation is otherwise determined under the Plan (the
determination period). The cost-of-living, adjustment in effect for a calendar year applies to
annual compensation for the determination period that begins with or within such calendar year.
11 -2
If compensation for a period of less than 12 months is used for a plan year, then the otherwise
applicable compensation limit is reduced in the same proportion as the reduction in the 12 -month
period. If a determination period consists of fewer than 12 months, the annual compensation
limit will be multiplied by a fraction, the numerator of which is the number of months in the
determination period, and the denominator of which is 12.
If Compensation for any prior determination period is taken into account in
determining an employee's benefits accruing in the current Plan Year, the Compensation for that
prior determination period is subject to applicable amoral compensation limit in effect for that prior
determination period.
For limitation years beginning on and after January 1, 2001, for purposes of
applying the limitations described in this Subsection 2.1(m), Compensation paid or made
available during such limitation years shall include elective amounts that are not includible in the
gross income of the Employee by reason of Section 132(f)(4) of the Code.
(n) Deductible Participant Contribution: Prior to January 1, 1987, the amount a
Participant may voluntarily contribute to the Plan which could not exceed the lesser of $2,000 (or
such higher limit as allowed by the Code), or 100% of Compensation, and is deductible from
gross income by the Participant pursuant to the Code. No Deductible Participant Contributions
may be made after January 1, 1987.
(o) Deferred Compensation Contributions: A Participant's contributions described
in Section 4.8 herein and credited to his Participant Deferred Compensation Contribution
Account.
(p) Disability: A physical or mental condition which, in the judgment of the
Committee, totally and presumably permanently prevents a Participant from engaging in any
substantial gainful employment with the Employer. A determination of such disability shall be
based upon competent medical evidence.
(q) Effective Date: The later of. (a) the date specified in the Joinder Agreement; or
(b) the first day on which the Plan has a Participant.
(r) Employer: A Municipality chartered, incorporated or formed under the laws of
the State of Oklahoma which executes the Joinder Agreement.
(s) Employment Commencement Date: The first day of the first pay period during
which the Participant receives wages as defined in Section 3121(a) of the Code from the
Employer.
(t) Entry Date: The date an Employee becomes a Participant
(u) Forfeiture: The portion of a Participant's Accounts which becomes forfeitable
pursuant to Section 6.6 hereof.
(v) Fund: The fund established to provide the benefits under the Plan for the
exclusive benefit of the Participants included in the Plan, and which will be pooled with similar
II -3
funds of other incorporated cities and towns of Oklahoma as a part of the Oklahoma Municipal
Retirement Fund, for purposes of pooled management and investment.
Ov) Investment Manager: A person who is either (i) registered as an investment
adviser under the Investment Advisers Act of 1940, (ii) a bank, as defined in the Investment
Advisers Act of 1940, or (iii) an insurance company qualified to perform investment
management services under the laws of more than one state.
(x) Investment Options: Any of those investment options selected by the
Committee in accordance with Section 5.12 hereof.
(y) Joinder Agreement: The agreement by which the Employer adopts this Plan and
Fund as its Plan and Fund.
(z) Leased Employee: Any person (other than an employee of the recipient) who
pursuant to an agreement between the recipient and any other person ("leasing organization ") has
performed services for the recipient (or for the recipient and related persons determined in
accordance with Section 414(n)(6) of the Code) on a substantially full time basis for a period of
at least one year, and such services are performed under primary direction or control by the
recipient. Contributions or benefits provided a leased employee by the leasing organization
which are attributable to services performed for the recipient employer shall be treated as
provided by the recipient employer.
A leased employee shall not be considered an employee of the recipient if: (I) such
employee is covered by a money purchase pension plan providing: (1) a nonintegrated employer
contribution rate of at least 10% of compensation, as defined in Section 415(c)(3) of the Code, but
including amounts contributed pursuant to a salary reduction agreement which are excludable from
the employee's gross income under Section 125, Section 402(e)(3), Section 402(h)(1)(13) or Section
403(b) of the Code, (2) immediate participation, and (3) full and immediate vesting; and (ii) leased
employees do not constitute more than 20% of the recipient's nonlughly compensated work force.
(aa) Limitation Year: The twelve (12) consecutive month period ending on June 30th
of each year. If the Limitation Year is amended to a different twelve (12) consecutive month
period, the new Limitation Year must begin on a date within the Limitation Year in which the
amendment is made.
(bb) Loan Account: A Participant's Separate Account established in the event he
desires to make a loan from his applicable Account as provided in Section 6.14 herein.
(cc) Mandatory Contributions: Contributions, if elected by the Employer in the
Joinder Agreement, which Participants are required to make in order to participate in the Plan.
(dd) Municipality: (1) each and every incorporated municipality in the State of
Oklahoma; (2) public trusts having municipalities as a beneficiaries; (3) interlocal cooperatives
created pursuant to 74 Oklahoma Statutes, Sections 1001, et seq., between municipalities and /or
their public trust, and; (4) any other legal entity comprising a municipal authority as that term is
used in Chapter 48 of Title 11 Oklahoma statutes, which has adopted the Plan and/or which has
become a participant in the related trust according to the terms herein.
II -4
(ee) Municipality Contribution Account: The account maintained for a Participant
in which his share of the contributions of the Employer and the Amounts Forfeited and any
adjustments relating thereto are recorded.
(ff) Normal Retirement Date: The first day of the month occurring on or next
following the date a Participant attains sixty -five (65) years of age.
(gg) Oklahoma Municipal Retirement Fund: The trust created in accordance with
Sections 48 -101 et seq., of Title 11, Oklahoma Statutes 1981, to combine pension and retirement
funds in incorporated cities and towns of Oklahoma for purposes of management and investment,
represented by and acting through its Board of Trustees.
(hh) Participant: Any Employee or former Employee who meets the eligibility
requirements and is covered under the Plana
(ii) Participant Contribution Accounts: All of the following Accounts:
(i) Participant Deductible Contribution Account, (ii) Participant Deferred Compensation
Contribution Account, (iii) Participant Nondeductible Contribution Account, (iv) Catch -Up
Contribution Account, (v) Pick -Up Contributions Account, (vi) Participant Mandatory
Contributions Account, (vii) Participant Rollover Account, and (viii) Participant Roth
Contribution Account.
0j) Participant Deductible Contribution Account: The Account maintained for a
Participant in which his Deductible Participant Contributions and adjustments relating thereto are
recorded.
(kk) Participant Deferred Compensation Contribution Account: The Account
maintained for a Participant in which his Deferred Compensation Contributions resulting from
the Participant's election tinder Section 4.8 of the Plan and adjustments thereto are recorded.
(11) Participant Mandatory Contribution Account: The Account maintained for a
Participant in which his Mandatory Contributions and adjustments relating thereto are recorded.
(mm) Participant Nondeductible Contribution Account: The Account maintained
for a Participant in which his voluntary nondeductible contributions and adjustments relating
thereto are recorded.
(nn) Participant Rollover Account: The Account maintained for a Participant in
which any Rollover Contributions are recorded.
(oo) Participant Roth Contribution Account: The Account maintained for a
Participant in which any Roth Contributions are recorded.
(pp) Participation: The period commencing as of the date an Employee became a
Participant and ending on the date the final distributions of all the Account balances are made.
Ii -5
(qq) Period(s) of Service or Service:
(1) A Participant's last continuous period during which the Participant was an
Employee of the Employer and /or any other Municipality prior to the earlier of his Retirement or
Break in Service.
G) Service includes employment with a Municipality other than the
Employer prior to the time that the other Municipality adopted the Plan if the other
Municipality credits a participant's past service under its retirement plan; and
(ii) Service for the Employer does not include employment with any
Municipality if that service would not be included under the Municipality's Plan.
(2) Concurrent employment with more than one Municipality shall be credited
as only one period of service.
(3) Any Authorized Leave of Absence shall not be considered as interrupting
continuity of employment, provided the Employee returns within the period of authorized
absence. Until such time as the City Council shall adopt rules to the contrary, credit for Service
with the Employer shall be granted for any period of Authorized Leave of Absence during which
the Employee's fiili Compensation is continued and contributions to the Fund are continued at
the same rate and made by or for him, but credit for Service with the Employer shall not be
granted for any period of authorized, nonpaid absence due to illness, union leave, military
service, or any other reason, unless arrangements are made with the City Council for the
Employee's continued participation and for contributions to be continued at the same rate and
made by him or on his behalf during such absence. Provided, however, if a Participant is on an
Authorized Leave of Absence and is receiving worker's compensation during such Authorized
Leave of Absence, and if the Employer so elects in the Joinder Agreement, such Participant shall
be credited with Service for such period for purposes of vesting only (and not for purposes of
allocation of Employer Contributions).
(4) The expiration of the term of office of an elected official shall not be
considered as interrupting continuity of employment, provided the official is re- elected for a
consecutive terns.
(5) Any reference in this Plan to the number of years of Service of a Participant
shall include fractional portions of a year.
(6) With respect to a Participant who was previously 100% vested in any other
Municipality's qualified retirement plan prior to becoming a Participant in this Plan, such
Participant's "Service" for purposes of determining years of service for vesting under this Plan
shall include the Participant's last continuous period during which the Participant was an employee
of the other Municipality.
(rr) Pick -Up Contributions: The Employer's contributions described in Section 4.7
hereof and credited to his Pick -Up Contribution Account.
1I -6
(ss) Pick -Up Contributions Account: The account maintained for a Participant in
which his share of Pick -Up Contributions are recorded.
(tt) Plan: The Oklahoma Municipal Retirement Fund Master Defined Contribution
Plan set forth herein, and all subsequent amendments.
(uu) Plan Administrator: The persons who administer the Plan pursuant to the
provisions of Article X hereof.
(w) Plan Year: Means the twelve (12) consecutive month period ending June 30th of
each year. The initial or final Plan Year may be less than a twelve (12) consecutive month
period.
(ww) Previous Plan: The terms and provisions in the prior instruments governing the
Employer's qualified defined contribution retirement plan and related trust, and applying before
the Effective Date hereof, or any other date expressly specified herein if different from the
Effective Date, which prior instruments are amended, restated and superseded by this instrument.
(xx) Retirement: Termination of employment upon a Participant's attaining age 65.
(yy) Roth Contributions: A Participant's contributions described in Section 4.8(d)
herein and credited to his Participant Roth Contribution Account.
(zz) Trust Service Provider: The person appointed by the Trustee to supervise
operation of the Oklahoma Municipal Retirement Fund and to assist participating Municipalities
in the adoption and operation of the Plan.
(aaa) Trustee: The Trustees appointed pursuant to the Trust Indenture establishing the
Oklahoma Municipal Retirement Fund.
(bbb) Valuation Date: The date specified in Section 13 of the Joinder Agreement and
any Special Valuation Dates determined in accordance with Section 5.10.
(ece) Valuation Period: The period of time between two successive Valuation Dates.
2.2 Construction: The masculine gender, where appearing in the Plan, shall be deemed to
include the feminine gender, unless the context clearly indicates to the contrary. The words
"hereof" "herein," "hereunder" and other similar compounds of the word "herein" shall mean
and refer to the entire Plan, not to any particular provision or section.
II -7
ARTICLE III.
Eligibility and Participation
3.1 Eligibility: An Employee, as defined in the Joinder Agreement, who has satisfied all the
requirements set forth in the Joinder Agreement shall be eligible to participate in the Plan. Any
person who has been classified by the Employer as an independent contractor and has had his
compensation reported to the Internal Revenue Service on Form 1099 but who has been
reclassified as an "employee" (other than by the Employer) shall not be considered as an eligible
Employee who can participate under this Plan; provided, if the Employer does reclassify such
worker as an "Employee," for purposes of this Plan, such reclassification shall only be
prospective from the date that the Employee is notified by the Employer of such reclassification.
3.2 Entry Date: The participation of an Employee eligible to become a Participant shall
continence on the earliest date permitted by the Employer in the Joinder Agreement.
3.3 Re- employment of Former Participants: Subject to'Section 3.4, if a Participant incurs
a Break in Service and is subsequently re- employed by the Employer, the Participant shall not
receive any credit for his previous Period of Service with the Employer and such Participant
shall be treated in the same manner as a person who has not previously been employed by any
Municipality.
3.4 Re- employment of Retired or Fully Vested Participants: If a retired or fully vested
Participant is re- employed by the Employer, no distributions shall be made from the Plan during
the period of such re- employment. Periods of Service prior to such Participant's retirement or
termination of service, as applicable, shall count as Periods of Service for purposes of
determining such Participant's vested interest in his Municipality Contribution Account.
11I -1
ARTICLE IV.
Contributions
4.1 Contributions by Employer: The Employer shall make such contributions as set forth
in the Joinder Agreement. Such contributions shall be made from the operating revenue of the
current taxable year or from accumulated revenue or surplus, as appropriate. The contribution
shall be detennined by written action of the Employer stating the amount of such contribution,
and by the payment of such stated amount to the Trustee monthly. Upon execution of the
Joinder Agreement, the Employer will contribute one Dollar ($1.00) to establish the Fund. Any
Participant who received Compensation from the Employer during the Valuation Period shall
share in the Employer's contribution for the Valuation Period, even if not employed on the last
day of the Valuation Period.
All Participant contributions shall be transmitted monthly to the Trustee after being
withheld by the Employer. The Trustee shall hold all such contributions, subject to the provisions
of the Plan and Fund, and no part of these contributions shall be used for, or diverted to, any other
purpose.
4.2 Required Participant Contributions: If the Employer so elects in the Joinder
Agreement, Participants shall not be required to contribute to the Plan.
4.3 Mandatory Contributions: If the Employer so elects in the Joinder Agreement, a
Participant shall contribute to the Plan for each Plan Year the percentage of his Compensation set
forth in the Joinder Agreement. Mandatory Contributions shall be made by payroll deductions.
The Participant shall authorize such deductions in writing on fonns approved by, and filed with,
the Committee.
4.4 Voluntary Nondeductible Contributions by Participants: Subject to the limitations of
Sections 5.11 and to such rules of uniform application as the Committee may adopt, each
Participant may elect to make nondeductible contributions to the Plan. The contributions of such
Participant after the Effective Date may be by payroll deduction, which the Participant shall
authorize the Employer to make on written authorization forms designated by and filed with the
Committee, or by cash payments by such Participant to the Trustee. The authorization to make
contributions by payroll deductions shall be effective on the first day following the Committee's
receipt of the payroll deduction authorization. In addition, a Participant may make Rollover
Contributions notwithstanding the percentage limitations in the first sentence of this Section or
the cash payment requirement of the second sentence of this Section.
4.5 Change of Rate of Voluntary Nondeductible Contributions by Participant: The
Participant may change his rate of payroll deduction at any time between the minimum and
maximum rates specified in Section 4.4, or he may discontinue his payroll deductions at any
time. Any change of rate or discontinuance of payroll deductions shall be effective on the first
payday following the receipt of written notice thereof by the Committee; provided, however, that
not more than one change or discontinuance shall be made within a calendar month unless
otherwise stated by the Committee.
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The Participant must furnish the Committee at the time of any Participant Contribution or
payroll deduction authorization an election designating the contribution as a Mandatory
Contribution, Deductible Participant Contribution, or a Voluntary Nondeductible Contribution.
4.6 Participant Contributions Nonforfeitable: Each Participant who contributes hereunder
shall have a nonforfeitable vested interest in that portion of the value of his own contributions
not theretofore previously withdrawn by him.
4.7 Pick -Up Contributions: If the Employer elects in the Joinder Agreement, all
Participants shall be required as a condition of employment to make the contributions specified
in the Joinder Agreement. These contributions shall be picked up and assumed by the Employer
and paid to the Fund in lieu of contributions by the Participant. Such contributions shall be
designated as Employer contributions for federal income tax purposes. Each Participant's
Compensation will be reduced by the amount paid to the Fund by the Employer in lieu of the
required contribution by the Participant. These contributions shall be excluded from the
Participant's gross income for federal income tax purposes and from wages for purposes of
withholding under Sections 3401 through 3404 of the Code in the taxable year in which
contributed. No Participant shall have the option of receiving the contributed amounts directly
as Compensation. Contributions made by the Employer under this election shall be designated
as Participant contributions for purposes of vesting, determining Participant rights and
Participant Compensation. [In order for the Employer to have reliance on whether the Pick -Up
Contributions comply with Section 414(h)(2) of the Code, the Employer must obtain a private
letter ruling from the Internal Revenue Service.]
4.8 Deferred Compensation Contributions: If the Employer elects in the Joinder
Agreement and if such Employer adopted a cash or deferred feature before May 7, 1986, the
following provisions shall apply:
(a) Deferred Compensation Contributions under Code Section 401(k): A
Participant, by written notice to the Plan Administrator, may elect to make a Deferred
Compensation Contribution to the Plan rather than receive Compensation to which the
Participant would otherwise be entitled during the period immediately following such election.
Subject to the limitations of this Section 4.8 and Section 5.11, a Participant's Deferred
Compensation Contribution may be any whole percentage of his Compensation, but in no case
shall a Participant's Deferred Compensation Contribution election exceed the percentage set forth
in the Joinder Agreement. Such election shall be binding until the Participant, by written notice to
the Plan Administrator, modifies or discontinues his Deferred Compensation Contribution. A
Participant's initial election, or modification or discontinuance shall be effective as soon as
administratively practicable following the Plan Administrator's receipt of the Participant's written
notice of election, modification or discontinuance, and shall remain in effect until modified or
terminated. Provided, not more than one change or discontinuance shall be made within a calendar
month unless otherwise stated by the Committee.
Employer contributions made pursuant to this Section 4.8 shall be credited to the
Participant's Participant Deferred Compensation Account. All such Employer contributions shall
IV -2
be paid to the Trustee as soon as practicable following the retention of such amounts by the
Employer from the Participant's Compensation.
(b) Dollar Limitation on Deferred Compensation Contributions:
(i) General Rule. No Participant shall be permitted to make Deferred
Compensation Contributions during any calendar year in excess of the dollar limitation contained
in Section 402(g) of the Code (including, if applicable, the dollar limitation on Catch -Up
Contributions defined in Section 414(v) of the Code) in effect as of the beginning of the taxable
year as adjusted under Section 402(g)(4) of the Code (hereafter referred to as "Excess Elective
Deferrals "). In the case of a Participant who is age 50 or over by the end of the taxable year, the
dollar limitation described in the preceding sentence includes the amount of Deferred
Compensation Contributions that can be Catch -Up Contributions. In the event a Catch -Up
Contribution eligible Participant makes Excess Elective Deferrals, the Plan Administrator shall
cause such Participant's Deferred Compensation Contributions to be recharacterized as Catch -Up
Contributions to the extent necessary to either (i) exhaust his Excess Elective Deferrals, and/or
(ii) increase his Catch -Up Contributions to the applicable limit under Section 414(v) of the Code
for the Plan Year.
(ii) Recharacterization to Meet Limits of Section 402(8) of the Code. In
the event a Participant's Deferred Compensation Contributions for a Plan Year do not equal the
maximum Contributions that may be made under the Plan during that Plan Year for any reason,
the Participant's Catch -Up Contributions for such Plan Year shall be recharacterized as Deferred
Compensation Contributions for all purposes to the extent necessary to increase his Deferred
Compensation Contributions to equal such maximum for such Plan Year.
(iii) Corrective Distributions.
a. General. Notwithstanding any other provision of the Plan to the
contrary, Excess Elective Deferrals (remaining after recharacterization as
discussed above) and income and loss allocable thereto for the applicable calendar
year trust be distributed no later than April 15 following the calendar year in
which Excess Elective Deferrals are incurred to avoid penalty, to Participants who
have Excess Elective Deferrals for the preceding calendar year. Provided that,
Excess Elective Deferrals to be distributed for a taxable year will be reduced by
Excess Contributions previously distributed for the Plan Year beginning in such
taxable year. For years beginning after 2005, distribution of Excess Elective
Deferrals for a year shall be made first from the Participant's Account holding
Deferred Compensation Contributions, to the extent Deferred Compensation
Contributions were made for the year, unless the Participant specifies otherwise.
b. Calculation of Income Allocable to Excess Elective Deferrals.
The Plan Administrator shall use the method provided in Section 5.6 herein for
computing the income allocable to corrective distributions pursuant to this
Section. Excess Elective Deferrals are determined on a date that is no more than
seven (7) days before the distribution. For the Plan Year beginning in 2007,
income or loss allocable to the period between the end of the taxable year and the
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date of distribution ( "gap period ") must be taken into account for corrective
distributions. For Plan Years beginning after 2007, income or loss applicable to
the gap will not be taken into account for corrective distributions.
(c) Catch -up Contributions: For Plan Years begimung after December 31, 2001,
all employees who are eligible to make Deferred Compensation Contributions under this Plan
and who have attained age 50 before the close of the employee's taxable year shall be eligible to
make Catch -Up Contributions in accordance with, and subject to the limitations of Section
414(v) of the Code. Catch -Up Contributions are Deferred Compensation Contributions made to
the Plan that are in excess of an otherwise applicable Plan limit and that are made by Participants
who are age 50 or over by the end of their taxable years. An otherwise applicable Plan limit is a
limit in the Plan that applies to Deferred Compensation Contributions without regard to Catch -
Up Contributions, such as the limit on Annual Additions and the Code Section 402(g) limit.
Such Catch -Up Contributions shall not be taken into account for purposes of the provisions of
the Plan implementing the required limitations of Sections 402(g) and 415 of the Code. The Plan
shall not be treated as failing to satisfy the provisions of the Plan implementing the requirements
of Section 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416 of the Code, as applicable, by
reason of the making of such Catch -Up Contributions.
(d) Roth Elective Deferrals:
(i) General Application.
(1) If elected by the Employer in the Joinder Agreement, this
Subsection (d) will apply to Contributions beginning with the effective date specified in the
adoption agreement but in no event before the first day of the first taxable year beginning on or
after January 1, 2006.
(2) As of the effective date under Subsection (1), the Plan will accept
Roth elective deferrals made on behalf of Participants. A Participant's Roth elective deferrals
will be allocated to a separate account maintained for such deferrals as described in Subsection
(ii).
(3) Unless specifically stated otherwise, Roth elective deferrals will be
treated as elective deferrals for all purposes under the Plan.
(ii) Separate Accounting.
(1) Contributions and withdrawals of Roth elective deferrals will be
credited and debited to the Roth elective deferral account maintained for each Participant.
(2) The Plan will maintain a record of the amount of Roth elective
deferrals in each Participant's account.
(3) Gains, tosses, and other credits or charges must be separately
allocated on a reasonable and consistent basis to each Participant's Roth elective deferral account
and the Participant's other accounts under the Plan.
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(4) No contributions other than Roth elective deferrals and properly
attributable earnings will be credited to each Participant's Roth elective deferral account.
(iii) Direct Rollovers.
(1) Notwithstanding Section 9.5, a direct rollover of a distribution
from a Roth elective deferral account under the Plan will only be made to another Roth elective
deferral account under an applicable retirement plan described in § 402A(e)(1) or to a Roth IRA
described in Code Section 408A, and only to the extent the rollover is permitted under the rules
of Code Section 402(e).
(2) Notwithstanding Section 9.5, if elected by the Employer in the
Joinder Agreement, the Plan will accept a rollover contribution to a Roth elective deferral
account only if it is a direct rollover from another Roth elective deferral account under an
applicable retirement plan described in Code Section 402A(e)(1) and only to the extent the
rollover is permitted under the rules of Code Section 402(c).
(3) The Plan will not provide for a direct rollover (including an
automatic rollover) for distributions from a Participant's Roth elective deferral account if the
amount of the distributions that are eligible rollover distributions are reasonably expected to total
less than $200 during a year. In addition, any distribution from a Participant's Roth elective
deferral account is not taken into account in determining whether distributions from a
Participant's other accounts are reasonably expected to total less than $200 during a year.
However, eligible rollover distributions from a Participant's Roth elective deferral account are
taken into account in determining whether the total amount of the Participant's account balances
under the Plan exceeds $1,000 for purposes of mandatory distributions from the plan.
deferral that is:
(iv) Definition.
(1) Roth Elective Deferrals. A Roth elective deferral is an elective
a. Designated irrevocably by the Participant at the time of the
cash or deferred election as a Roth elective deferral that is being made in lieu of
all or a portion of the pre -tax elective deferrals the Participant is otherwise
eligible to make under the plan; and
b. Treated by the Employer as includible in the Participant's
income at the time the Participant would have received that amount in cash if the
Participant had not made a cash or deferred election.
IV -5
ARTICLE V.
Accounting, Allocation and Valuation
5.1 Accounts: The Committee shall maintain a separate Municipality Contribution Account,
Participant Nondeductible Contribution Account, Participant Mandatory Contribution Account,
Participant Deductible Contribution Account, Participant Rollover Account, Participant Deferred
Compensation Contribution Account, Catch -Up Contribution Account, Pick -Up Contributions
Account and Loan Account as necessary for each Participant. A separate sub - account for each
such Account shall be maintained for each Investment Option offered in accordance with Section
5.12. All such Accounts shall be credited or debited as herein provided.
5.2 Eligibility for Allocation: Employer contributions together with Amounts Forfeited as
of the Valuation Date shall be allocated to the Municipality Contribution Accounts of
Participants.
5.3 Allocation of Contribution: The Employer contributions, together with Amounts
Forfeited as of the prior Valuation Date shall be allocated in the manner elected by the Employer
in the Joinder Agreement,
5.4 Allocation of Amounts Forfeited: No Amount Forfeited attributable to the contribution
of one Employer adopting this Plan may be allocated for the benefit of Participants of the Plan of
any other adopting Employer.
5.5 Value of Account: The value of a Participant's Account is equal to the sum of all
contributions, earnings or losses, and other additions credited to the Account, less all
distributions (including distributions to Beneficiaries and to alternate payees and also including
disbursement of Plan loan proceeds), forfeitures, expenses and other charges against the Account
as of a Valuation Date or other relevant date. For purposes of a distribution under the Plan, the
value of a Participant's Account balance is its value as of the Valuation Date immediately
preceding the date of the distribution. The value of a Participant's Account is the fair market
value of the assets in the account.
5.6 Allocation of Investment Earnings and Losses: As of each Valuation Date, the
Accounts will be adjusted to reflect the earnings and losses since the last Valuation Date.
Earnings or losses will be allocated using the daily valuation method so that earnings or losses
will be allocated on each day of the Plan Year for which Plan assets are valued on an established
market.
5.7 Accounting for Participants' Contributions: Contributions by or on behalf of each
Participant shall be credited to his Participant Nondeductible Contribution Account, Participant
Mandatory Contribution Account, Participant Deductible Contribution Account, Catch -Up
Contribution Account, Pick -Up Contribution Account, or Participant Deferred Compensation
Contribution Account as deposited with the Trustee.
5.8 Accounting for Statement of Account: As soon as is administratively feasible, the
Committee shall present to each Participant a statement of such Participant's Accounts, at least
annually, showing the balances at the beginning of the reported period, any changes during the
reported period, the balances at the end of the reported period, and such other information as the
V -1
Committee may detenmine. However, neither the maintenance of accounts, the allocations to
Accounts, nor the statements of account shall operate to vest in any Participant any right or
interest in or to the Fund except as the Plan specifically provides herein.
5.9 Time of Adjustment: Each adjustment required by this Article V shall be deemed to
have been made at the times specified in this Article V, regardless of the dates of actual entries
or receipts by the Trustee of contributions for such Plan Year.
5.10 Special Valuation Date: If the Committee determines that a substantial change in the
value of any Investment Fund has occurred since the last Valuation Date, the Committee may,
prior to the next Valuation Date, establish one or more Special Valuation Dates and determine
the adjustment required to make the total net credit balance in the Accounts of the then
Participants equal to the then market value of the total assets of the Fund, Such adjustments shall
be made consistent with the procedure specified in Section 5.5. Having determined such
adjustment, all distributions which are to be made as of or after such special Valuation Date, but
prior to the next succeeding Valuation Date or Special Valuation Date, shall be made as if the net
credit balances in all Accounts had actually been credited or debited to reflect the adjustment
provided by this Section.
5.11 Limitation on Allocation of Employer Contributions: The following provisions will
be applicable in determining if the Plan and the Employer contributions thereto satisfy the
requirements of Section 415 of the Code and the regulations thereunder. Except to the extent
permitted under Section 4.8(c) of this Plan and Section 414(v) of the Code, if applicable, the
Amaral Additions that may be contributed or allocated to a Participant's Accounts under the Plan
for any limitation year shall not exceed the Maximum Permissible Amount.
(a) Definitions: For the purposes of this Section the following definitions shall be
applicable:
0) Annual Additions: For purposes of the Plan, "Annual Additions" shall
mean the amount allocated to a Participant's Account during the Limitation Year that constitutes:
(1) Employer contributions,
(2) Employee Deferred Compensation Contributions or Roth
Contributions (excluding excess deferrals that are distributed in accordance with Treas. Reg.
§ 1.402(g)- 1(e)(2) or (3)),
(3) Forfeitures, and
(4) Amounts allocated to an individual medical account, as defined in
Section 415(1)(2) of the Code, which is part of a pension or annuity plan maintained by the
Employer are treated as annual additions to a defined contribution plan; and amounts derived
from contribution plans or accrued after December 31, 1985, and taxable years ending after such
date, which are attributable to post - retirement medical benefits, allocated to the separate account
of a key employee, as defined in Section 419(A)(d)(3) of the Code, under a welfare benefit fund,
as defined in Section 419(e) of the Code, maintained by the Employer are treated as annual
addition to a defined contribution plan.
V -2
Annual additions for purposes of Code § 415 shall not include restorative payments. A
restorative payment is a payment made to restore losses to a Plan resulting from actions by a
fiduciary for which there is reasonable risk of liability for breach of a fiduciary duty under
federal or state law, where participants who are similarly situated are treated similarly with
respect to the payments. Generally, payments are restorative payments only if the payments are
made in order to restore some or all of the Plan's losses due to an action (or a failure to act) that
creates a reasonable risk of liability for such a breach of fiduciary duty (other than a breach of
fiduciary duty arising from failure to remit contributions to the Plan). This includes payments to
a plan made pursuant to a court - approved settlement, to restore losses to a qualified defined
contribution plan on account of the breach of fiduciary duty (other than a breach of fiduciary
duty arising from failure to remit contributions to the Plan). Payments made to the Plan to make
up for losses due merely to market fluctuations and other payments that are not made on account
of a reasonable risk of liability for breach of a fiduciary duty are not restorative payments and
generally constitute contributions that are considered annual additions.
Annual additions for purposes of Code § 415 shall not include: (1) The direct transfer of a
benefit or employee contributions from a qualified plan to this Plan; (2) rollover contributions (as
described in Code §§ 401(a)(31), 402(c)(1), 403(a)(4), 403(6)(8), 408(4)(3), and 457(e)(16));
(3) repayments of loans made to a participant from the Plan; and (4) repayments of amounts
described in Code § 411(a)(7)(B) (in accordance with Code § 411(a)(7)(C)) and Code
§ 411(a)(3)(D), as well as Employer restorations of benefits that are required pursuant to such
repayments.
1£ in addition to this Plan, the Participant is covered under another qualified plan which is a
defined contribution plan maintained by the Employer, a welfare benefit fund, as defined in
Section 419(e) of the Code maintained by the Employer, or an individual medical benefit
account, as defined in Section 415(1)(2) of the Code maintained by the Employer, which
provides for Annual. Additions during any Limitation Year, then the Annual Additions which
may be credited to a Participant's Account under this Plan for any such Limitation Year will not
exceed the Maximum Permissible Amount reduced by the Annual Additions credited to a
Participant's Account under the other plans and welfare benefit funds for the saine Limitation
Year. If the Annual Additions with respect to the Participant under other defined contribution
plans and welfare benefit plans maintained by the Employer are less than the Maximum
Permissible Amount and the Employer contribution that would otherwise be contributed or
allocated to the Participant's Account under this Plan would cause the Annual Additions for the
Limitation Year to exceed this limitation, the amount contributed or allocated will be reduced so
that the Annual Additions cinder all such plans and funds for the Limitation Year will equal the
Maximurn Permissible Amount. If the Amoral Additions with respect to the Participant under
such other defined contribution plans and welfare benefit funds in the aggregate are equal to or
greater than the Maximum Permissible amount, no excess amount will be contributed or
allocated to a Participant's Account under this Plan for the Limitation Year.
(ii) Actual Compensation: The words "Actual Compensation" shall mean a
Participant's wages, salaries, and fees for professional services and other amounts received
without regard to whether or not an amount is paid in cash for personal services actually
rendered in the course of employment with the Employer, to the extent that the amounts are
ineludible in gross income (or to the extent amounts deferred at the election of the Employee
V -3
would be includible in gross income but for the rules of Sections 125, 132 (for limitation years
beginning after December 31, 2001), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b) of the Code).
These amounts include, but are not limited to, commissions paid salesmen, compensation for
services on the basis of a percentage of profits, commissions on insurance premiums, tips and
bonuses, fringe benefits, and reimbursements or other expense allowances under a
nonaccountable plan as described in Treas. Reg. §1.62- 2(c)). For years beginning after
December 31, 2008, (i) an individual receiving a differential wage payment, as defined by Code
§3401(h)(2), is treated as an employee of the employer making the payment, (ii) the differential
wage payment is treated as Actual Compensation, and (iii) the Plan is not treated as failing to
meet the requirements of any provision described in Code §414(u)(1)(C) by reason of any
contribution or benefit which is based on the differential wage payment.
For purposes of applying the limitations described in Section 5.11 of the Plan, Compensation
paid or made available during such limitation years shall include elective amounts that are not
includable in the gross income of the employee by reason of Code Section 132(f)(4).
Actual Compensation shall be adjusted, as set forth herein, for the following types of
compensation paid after a Participant's severance from employment with the Employer
maintaining the Plan (or any other entity that is treated as the Employer pursuant to Code
§ 414(b), (c), (m) or (o)). However, amounts described in Subsections (a) and (b) below may
only be included in Actual Compensation to the extent such amounts are paid by the later of 2%x
months after severance from employment or by the end of the limitation year that includes the
date of such severance from employment. Any other payment of compensation paid after
severance of employment that is not described in the following types of compensation is not
considered Actual Compensation within the meaning of Code § 415(c)(3), even if payment is
made within the time period specified above.
(b) Regular Pay: Actual Compensation shall include regular pay after severance of
employment if
(1) The payment is regular compensation for services during the Participant's
regular working hours, or compensation for services outside the Participant's regular working
hours (such as overtime or shift differential), commissions, bonuses, or other similar payments;
and
(2) The payment would have been paid to the Participant prior to a severance
from employment if the Participant had continued in employment with the Employer.
(c) Leave Cashouts and Deferred Compensation: Leave cashouts shall not be
included in Actual Compensation. In addition, deferred compensation shall be included in
Actual Compensation.
(d) Salary Continuation Payments for Disabled Participants: Actual
Compensation does not include compensation paid to a Participant who is permanently and
totally disabled (as defined in Code § 22(e)(3)).
(i) Excess Amount: The words "Excess Amount" shall mean the excess of
the Participant's Annual Additions for the applicable Limitation Year over the Maximum
V -4
Permissible Amount.
(ii) Maximum Permissible Amount: The words "Maximum Permissible
Amount" shall mean for the applicable Limitation Year, the "maximum permissible amount"
(except for Employee Catch -Up Contributions under Section 414(v) of the Code) which may be
contributed or allocated to or made with respect to any Participant which amount shall be the
lesser of:
(1) $40,000, as adjusted for cost -of- living under Code Section 415(d)
the "Defined Contribution Dollar Limitation," or
(2) 100% of the Participant's Actual Compensation for the Limitation
Year.
The compensation limitation referred to above shall not apply to: any contribution for medical
benefits (within the meaning of Section 419A(0(2) of the Code) after separation from service
which is otherwise treated as an Annual Addition, or any amount otherwise treated as an Annual
Addition wider Section 415(1)(1) of the Code.
(e) Determination of Excess: If an excess amount was allocated to a Participant on
an allocation date of this Plan which coincides with an allocation date of another plan, the excess
amount attributed to this Plan will be the product of (1) the total excess amount allocated as of
such date times (2) the ratio of (i) the Annual Additions allocated to the Participant for the
Limitation Year as of such date under this Plan to (ii) the total Annual Additions allocated to the
Participant for the Limitation Year as of such date under this and all other qualified plans which
are defined contribution plans.
(f) Treatment of Excess: Notwithstanding any provision of the Plan to the contrary,
if the annual additions (within the meaning of Code § 415) are exceeded for any participant, then
the Plan may be able to correct such excess in accordance with the Employee Plans Compliance
Resolution System (EPCRS) as set forth in Revenue Procedure 2013 -12 or any superseding
guidance, including, but not limited to, the preamble of the final § 415 regulations. However,
EPCRS may not be available in all situations.
5.12 Investment Options:
(a) Self- Directed: If the Employer elects in the Joinder Agreement, each Participant
in the Plan is hereby given the specific authority to direct the investment of all or any portion of
his Accounts in one or more Investment Options provided under this Plan in accordance with the
procedures established by the Committee. If a Participant does not designate an Investment
Option for his Accounts, his Accounts will be invested in the Balanced Fund or such other
Investment Option as may be designated by the Trustees. For purposes of this Section, the
Participants shall be exercising full investment control, discretion, authority and fiduciary
responsibility as provided in this Plan of the investments in such Participants' applicable
Accounts.
V -5
(b) Non - Self - Directed: If the Employer does not elect in the Joinder Agreement to
allow self - directed investments, all Accounts will be invested in the Balanced Fund or such other
Investment Option as may be designated by the Trustees.
V -6
ARTICLE VI.
Benefits
6.1 Retirement or Disability: If a Participant's employment with the Employer is
terminated when he attains age sixty -five (65), or if a Participant's employment is terminated at
an earlier age as the result of a Disability, he shall be entitled to receive the entire amount of his
Municipality Contribution Account.
6.2 Deferred Retirement: If a Participant, with the consent of the Employer, shall continue
in active employment following his Normal Retirement Date, he shall continue to participate
under the Plan. Upon actual retirement, such Participant shall be entitled to receive the entire
amount of his Municipality Contribution Account as of his actual retirement date.
6.3 Death of a Participant: Upon the death of a Participant, his Beneficiary shall be entitled
to receive the entire amount of his Municipality Contribution Account and Participant
Contribution Accounts as of the date of his death. In the case of a death occurring on or after
January l; 2007, if a Participant dies while performing qualified military service (as defined in
Code § 414(u)), the survivors of the Participant are entitled to any additional benefits (other than
benefit accruals relating to the period of qualified military service) provided under the Plan as if
the Participant had resumed and then terminated employment on account of death.
6.4 Termination for Other Reasons - Vested Percentage: If a Participant's employment
with the Employer is terminated before his Normal Retirement Date for any reason other than
Disability or death, except as provided in Section 6.12 hereof, he shall be entitled to an amount
equal to the vested percentage of his Municipality Contribution Account. Such vested
percentage shall be determined as of the date of termination in accordance with the election of
the Employer in the Joinder Agreement.
6.5 Initial Distribution Date: The date of initial distribution ( "Initial Distribution Date ") of
a Participant whose employment is terminated and provided that the Participant requests a
distribution, shall be as soon as practicable following his termination of employment and he shall
be entitled to the vested percentage of his Accounts on such Initial Distribution Date payable in
accordance with the provisions of Section 6.10. The portion of the Employer's contribution, the
Amounts Forfeited or the periodic adjustment which is allocated to a Participant terminated for the
reasons specified in Section 6.4 after such Initial Distribution Date shall be payable in accordance
with the method utilized under Section 6.10 as soon as practicable.
6.6 Determination of Amounts Forfeited: Upon a distribution pursuant to Section 6.4 or if
the Participant incurs a Break in Service, the forfeited percentage of a Participant's Municipality
Contribution Account, if any, shall be deducted from the Participant's Account. Such Amounts
Forfeited shall become available for allocation in accordance with Item 8 of the Joinder
Agreement as of the end of the calendar quarter following the Valuation Period in which the
terminated Participant forfeited such amounts.
6.7 Participant Contribution Accounts: A Participant shall be fully vested in his
Participant Contribution Accounts at all times. A Participant's Contribution Account balances
shall be paid to him in connection with the distribution to him of the vested portion of his
Vi -I
Municipality Contribution Account on or after his Initial Distribution Date. Such distributions
shall be made in accordance with Section 6.10 and Section 6.8.
6.8 Withdrawals from Participant's Contribution Accounts: In accordance with the
provisions hereof, a Participant may withdraw all or any part of his Participant Contribution
accounts by filing a written application with the Administrator. Such withdrawal shall be
effective no sooner than thirty (30) (unless waived by the Participant) but not later than ninety
(90) days after the Participant's receipt from the Plan Administrator of a rollover notice required
by Code Section 402(f), A Participant who withdraws all or part of his Participant Contribution
Account balances shall not forfeit his proportionate share of net income, gains and profits, if any,
for the Valuation Periods previously allocated to his Participant Contribution Accounts, nor any
portion of his Municipality Contribution Account but the Participant's Contribution Accounts
shall not share (to the extent of any withdrawals) in any net income for the Valuation Period in
which the withdrawal occurs. For any distribution notice issued in Plan Years beginning after
December 31, 2006, any reference to the 90 -day maximum notice period prior to distribution in
applying the notice requirements of Code § §402(f) (the rollover notice), or 411(a)(11)
(Participant's consent to distribution) will become 180 days.
(a) Participant Deductible Contribution Account: If allowed in the Joinder
Agreement, a Participant may withdraw all or any part of his Participant Deductible Contribution
Account (but not to exceed the amount in his Participant Deductible Contribution Account at the
time of withdrawal) by filing a written application with the Plan Administrator. Such withdrawal
may be made no more often than once a year. If at the time of the withdrawal the Participant has
not attained age 59%2 or is not disabled, the Participant will be subject to a federal income tax
penalty unless such withdrawal is rolled over to a qualified plan or individual retirement account
within sixty (60) days of the date of distribution.
(b) Participant Nondeductible Contribution Account: A Participant may withdraw
all or any part of his Participant Nondeductible Contribution Account by filing a written
application with the Plan Administrator.
(c) Participant Deferred Compensation Contribution Account: Notwithstanding
any other provision of this Plan, no amount in a Participant's Deferred Contribution Account may
be distributed to a Participant earlier than such Participant's retirement, death, Disability, or
severance from employment. The above distribution requirements shall be strictly interpreted by
the Plan Administrator to conform with the requirements of Section 401(k) of the Code and future
amendments or Internal Revenue Service interpretations thereof. If a Participant is allowed to
withdraw from his Participant Deferred Compensation Contribution Account, the provisions of the
first paragraph of this Section 6.8 shall apply to such withdrawals. Notwithstanding the foregoing,
for purposes of Code §401(k)(2)(B)(i)(I), effective January 1, 2009, an individual is treated as
having been severed from employment during any period the individual is performing service in
the uniformed services described in Code §3401(h)(2)(A). If an individual elects to receive a
distribution by reason of severance from employment, death or disability, the individual may not
make an elective deferral or employee contribution during the 6 -month period beginning on the
date of the distribution.
VI -2
(d) Pielc -up Contribution Account: Notwithstanding any other provision of this
Plan, no amount in a Participant's Pick -Up Contribution Account may be distributed to a
Participant earlier than such Participant's retirement, death, Disability, or separation from
service. If a Participant is allowed to withdraw from his Pick -Up Contribution Account, the
provisions of the first paragraph of this Section 6.8 shall apply.
6.9 Withdrawals from Participant's Mandatory Contribution Account: A Participant
may not withdraw any portion of his Participant Mandatory Contribution Account prior to the
termination of his employment. Such account balances will be paid at the same time and in the
same manner as such Participant's Municipality Contribution Account,
6.10 Methods of Distribution: On and after each Participant's Initial Distribution Date, after
all adjustments to his Accounts required as of such date shall have been made, distribution of his
share shall be made to or for the benefit of the Participant or, in case of his death, to or for the
benefit of his Beneficiary, by one of the following methods, as determined by the Committee:
(a) a lump sum distribution;
(b) an installment distribution consisting of approximately equal installments for a term
not exceeding ten (10) years;
(c) an installment distribution consisting of approximately equal installments for a term
not extending beyond the joint life expectancy (as calculated in accordance with Income Tax
Regulation section 1.72 -9) on the Initial Distribution Date of the Participant and his spouse;
(d) periodic distributions as designated by the Participant or Beneficiary; or
(e) purchase of an annuity.
Commencement of payments under the method of distribution selected shall be as of the initial
Distribution Date of the Participant, provided that for administrative convenience, such
conunencement may be delayed as reasonably necessary but in no event for more than sixty (60)
days after a reasonable time for all administrative calculations, allocations and accounting
operations necessary to determine the amount of the distribution. The Committee, in its sole
discretion, may accelerate the payment of any unpaid installments. If a former Participant
receiving installment payments dies prior to the receipt by him of the full amount to be paid to him
fi•om his Participant Accounts, the remaining installments shall be paid to his Beneficiary. Under
no circumstance may a method of payment be elected that would be expected to cause more than
fifty percent (50 %) of the present value of any series of payments to go to a person other than the
Participant.
6.11 Designation of Beneficiary: Each Participant shall designate his Beneficiary on a form
provided by the Committee and such designation may include primary and contingent
Beneficiaries. If Participant designates more than one Beneficiary, each shall share equally
unless the Participant specifies a different allocation. The designation may be changed at any
time by filing a new form with the Committee. In the absence of such written designation, the
surviving spouse, if any, of the Participant shall be deemed to be the designated Beneficiary, and
otherwise the estate of such Participant. Further, the written designation of the Participant's
VI -3
spouse may be voided upon divorce of the Participant if required by applicable state law. In all
events, the date of determination of a Participant's Beneficiary shall be the date of death of a
Participant. Production of a certified copy of the death certificate of any Participant or other
persons shall be sufficient evidence of death, and the Committee shall be fully protected in
relying thereon.
6.12 Loss of Benefits for Cause: [Reserved]
6.13 Payments Under a Qualified Domestic Relations Order:
(a) The Municipality shall follow the terms of any "Qualified Domestic Relations
Order" as defined in Subsection (b) below issued with respect to a Participant where such
Qualified Domestic Relations Order grants to an "Alternate Payee" rights in the benefit of the
Participant.
(b) The term "Qualified Domestic Relations Order" means an order issued by the
District Court of the State of Oklahoma pursuant to the domestic relations laws of the State of
Oklahoma which relates to the provision of marital property rights to a spouse or former spouse of
a Participant and which creates or recognizes the existence of an Alternate Payee's right to, or
assigns to an Alternate Payee the right to receive a portion of the benefits payable with respect to a
Participant of the Plan.
(c) To qualify as an Alternate Payee, a spouse or former spouse must have been
married to the Participant for a period of not less than thirty (30) continuous months immediately
preceding the commencement of the proceedings from which the Qualified Domestic Relations
Order issues.
(d) A Qualified Domestic Relations Order is valid and binding on the Trustees and the
Participant only if it meets the requirements of this Section.
(e) A Qualified Domestic Relations Order shall clearly specify:
1) the name, social security number, and last -known mailing address (if any)
of the Participant, and the name and mailing address of the alternative payee covered by the order;
2) the amount or percentage of the Participant's benefits to be paid by the Plan
to the Alternate Payee;
3) the characterization of the benefit as to marital property rights, and whether
the benefit ceases upon the death or remarriage of the Alternate Payee; and,
4) each plan to which such order applies.
(f) A Qualified Domestic Relations Order meets the requirements of this Section only
if such order:
1) does not require the Plan to provide any type or form of benefit, or any
option not otherwise provided under the Plan;
VI -4
2) does not require the Plan to provide increased benefits; and,
3) does not require the payment of benefits to an Alternate Payee which are
required to be paid to another Alternate Payee pursuant to another order previously determined to
be a Qualified Domestic Relations Order, or an order recognized by the Plan as a valid order prior
to the effective date of the Plan.
(g) A Qualified Domestic Relations Order shall not require payment of benefits to an
Alternate Payee prior to the actual retirement date or withdrawal of the related member.
(h) In the event a Qualified Domestic Relations Order requires the benefits payable to
an Alternate Payee to tenninate upon the remarriage of said Alternate Payee, the Plan shall
terminate said benefit only upon the receipt of a certified copy of a marriage license, or a copy of a
certified order issued by the Court that originally issued said Qualified Domestic Relations Order
declaring the remarriage of said Alternate Payee.
(i) This Section of the Plan shall not be subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA), 29 U.S.C.A. Section 1001, et seq., as amended
from time to time, or rules and regulations promulgated thereunder, and court cases interpreting
said Act.
(j) Effective on or after April 6, 2007, a domestic relations order that otherwise
satisfies the requirements for a QDRO will not fail to be a QDRO: (i) solely because the order is
issued after, or revises, another domestic relations order or QDRO; or (ii) solely because of the
time at which the order is issued, including issuance after the annuity starting date.
(1:) The Board of Trustees of the Oklahoma Municipal Retirement Fund shall
promulgate such rules as are necessary to implement the provisions of this Section.
(1) An Alternate Payee who has acquired beneficiary rights pursuant to a valid
Qualified Domestic Relations Order must fully comply with all provisions of the rules promulgated
by the Trustees pursuant to this Section in order to continue receiving his or her benefits.
(m) Nothing in this Section shall grant a spouse or former spouse of a Participant any
property rights in the benefits of any Participant except as specifically authorized for Qualified
Domestic Relations Orders, and no spousal consent shall be required for a Participant to elect or
change elections pertaining to a benefit payable under this Plan.
6.14 Loans to Participants:
(a) General: The Committee, in its sole discretion, may direct Trustees to make
loans to Participants upon the written direction and application of the Participant who desires to
effect such loan, up to 50% of the vested balance of a Participant's Accounts. All such loans
(i) shall not be made available to Highly Compensated Employees (as defined in Section 414(q)
of the Code) in an amount greater than the amount made available to other Employees, (ii) shall
be available to all Participants on a nondiscriminatory basis, (iii) shall be made available in an
amount equal to the lesser of 50% of the borrowing Participant's vested Benefit in his Account
or $50,000, (iv) shall bear a reasonable rate of interest which will be established by the
VI-5
Committee, (v) shall be secured by the borrowing Participant's Benefit account balance
attributable to his Account, (vi) shall be amortized and repaid in level payments of principal and
interest made not less frequently than monthly over the term of the loan, (vii) shall be repaid by
payroll reduction while the Participant is employed; (viii) shall accelerate and be due in full on
the date a Participant terminates employment with the Employer; (ix) shall not be less than
$1,000 in amount each; and (x) shall be made upon such other reasonable terms which the
Committee shall designate, such terms being applied in a nondiscriminatory fashion; provided, in
no event shall any loan have a term in excess of five years. There shall not be more than one
loan outstanding at any time with respect to a Participant. No Participant who has borrowed
from the Plan may make another loan until the previous loan has been fully repaid. Outstanding
loans are not subject to refinancing by a new loan. Upon direction by the Committee, and
subject to Subsection (c) below, the Trustees may foreclose upon such Participant's interest in
his Account in the event of default. A loan to a Participant, when added to the outstanding
balance of all other loans to the Participant from the Plan and other plans sponsored by the
Employer, cannot exceed $50,000, reduced by the excess of the highest outstanding balance of
loans from the Plan (and all other plans sponsored by the Employer) during the one -year period
ending on the day before the date the loan is made over the outstanding balance of the loans from
the Plan on the date the loan is made. No distribution of a Benefit shall be made to any
Participant, Beneficiary or the estate of a Participant unless and until all unpaid loans made by
the Plan to such Participant together with accrued interest have been paid in full. In determining
if any of the foregoing limitations regarding the making of loans to Participants, loans made
under all other plans (i) sponsored by the Employer and (ii) qualified under Sections 401(a) and
501(a) of the Code will be considered. All costs and expenses of any loan will be charged to the
applicable Accounts of the Participant.
(b) Establishment of Loan Account: At such time as it is determined that a
Participant is to receive a loan from the Plan, the loan shall be made from the Participant's
applicable Account in the order and precedence indicated hereafter and such amount shall be
deemed to be credited to the Participant's Loan Account with a corresponding debit to occur to
his Account: (i) first, an Account holding Employer contributions, including "rollover
contributions" (other than Deferred Compensation Contributions, if applicable); (ii) second, an
Account holding Deferred Compensation Contributions, if applicable; and (iii) third, an Account
holding contributions picked up and assumed by the Employer pursuant to Section 4.7 of this
Plan. All interest payments to be made pursuant to the terms and provisions of the loan shall be
credited to the applicable Account in such a manner so that the Loan Account will reflect unpaid
principal and interest from time to time. The earnings attributable to the Loan Account shall be
allocable only to the Loan Account of such Participant and shall not be considered as general
earnings of the Trust Fund to be allocated to the other Participants therein as provided herein.
Other than for the limited purposes of establishing a separate account for the allocation of the
interest thereto, a Participant's Loan Account shall, for all other purposes, be considered as part
of his applicable Account.
(c) Foreclosure of Loan Account: The Trustees may foreclose upon such
Participant's interest in his Account in the event of default under the loan made to the Participant
under this Section.
VI -6
(d) Special Restrictions on Foreclosure: In the event of default under a loan made
under this Section, foreclosure under the promissory note evidencing such loan and attachment
of the Participant's interest in his applicable Accounts shall occur within a reasonable time
following the event of default; provided, with respect to any portion of a loan secured by
amounts governed under Section 401(k) of the Code, if applicable, foreclosure on such 401(k)
amounts shall not occur until the occurrence of an event described under Section 401(k) of the
Code which would otherwise permit a distribution to be made from the Plan.
(e) Establishment of Loan Program: The Trustees are hereby authorized and
directed to establish a "loan program" (the "Loan Program ") and the Trustees are further
authorized to delegate to the Committee the duties and responsibilities with regard to the
implementation of the Loan Program as adopted by the Trustees for and on behalf of the PIan.
The Loan Program shall be considered to be a part of this Plan for the purposes stated in the
Loan Program.
(f) Loan Account: The words "Loan Account" shall mean a Participant's separate
Account established in the event he desires to make a loan from his applicable Account as
provided in this Section 6.14,
6.15 Required Minimum Distributions: The provisions of this Section 6.15 will apply for
purposes of determining Required Minimum Distributions for distribution calendar years
beginning with the 200" ) calendar year, as well as Required Minimum Distributions for the 2002
Distribution Calendar Years that are made on or after August 1, 2002. The requirements of this
Section will take precedence over any inconsistent provisions of the Plan. All distributions
required under this Section will be determined and made in accordance with the Treasury
regulations under Section 401(a)(9) and the minimum distribution incidental benefit requirement
of Section 401(a)(9)(G) of the Internal Revenue Code. Notwithstanding the other provisions of
this Section, distributions may be made under a designation made before January 1, 1984, in
accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and
the provisions of the Plan that relate to Section 242(b)(2) of TEFRA.
(a) Limits on Distribution Periods: As of the first distribution calendar year,
distributions, if not made in a single -sum, may only be made over one of the following periods
(or a combination thereof): (1) the life of the participant; (2) the life of the participant and a
designated beneficiary; (3) a period certain not extending beyond the life expectancy of the
participant; or (4) a period certain not extending beyond the joint and last survivor expectancy of
the participant and a designated beneficiary.
(b) Time and Manner of Distribution:
(i) 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. For purposes of this Section, the '`Required Beginning Date" of a Participant is
the April 1 of the calendar year following the later of the calendar year in which the Participant
attains age 70'/ or the calendar year in which the Participant retires.
VI -7
(ii) Death of Participant Before Distributions Begin. If the Participant dies
before distributions begin, the Participant's entire interest will be distributed, or begin to be
distributed, no later than as follows:
(1) If the Participant's surviving spouse is the Participant's sole
designated Beneficiary, then, distributions to the surviving spouse will begin by December 31 of
the calendar year immediately following the calendar year in which the Participant died, or by
December 31 of the calendar year in which the Participant would have attained age 70%2, if later.
(2) If the Participant's surviving spouse is not the Participant's sole
designated Beneficiary, then, distributions to the designated Beneficiary will begin by 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, the Participant's entire interest will be distributed
by December 31 of the calendar year containing the fifth anniversary of the Participant's death.
(4) If the Participant's surviving spouse is the Participant's sole
designated Beneficiary and the surviving spouse dies after the Participant but before distributions
to the surviving spouse begin, this Subsection (ii), other than Subsection (ii)(1), will apply as if
the surviving spouse were the Participant.
For purposes of this Subsection (ii) and Subsection (d), unless Subsection (ii)(1) applies,
distributions are considered to begin on the Participant's Required Beginning Date. If
Subsection (ii)(1) applies, distributions are considered to begin on the date distributions are
required to begin to the surviving spouse tinder Subsection (ii)(4). If distributions under an
annuity purchased from an insurance company irrevocably commence to the Participant before
the Participant's Required Beginning Date (or to the Participant's surviving spouse before the
date distributions are required to begin to the surviving spouse under Subsection (ii)(4)), the date
distributions are considered to begin is the date distributions actually commence.
(iii) Forms of Distribution. Unless the Participant's interest is distributed in
the form of an annuity purchased from an insurance company or in a single sum on or before the
Required Beginning Date, as of the first distribution calendar year distributions will be made in
accordance with Subsections (c) and (d) of this Section. If the Participant's interest is distributed
in the form of an annuity purchased from an insurance company, distributions thereunder will be
made in accordance with the requirements of Section 401(a)(9) of the Code and the Treasury
regulations.
(c) Required Minimum Distributions During Participant's Lifetime:
(i) Amount of Required Minimum Distribution For Each Distribution
Calendar Year. During the Participant's lifetime, the minimum amount that will be distributed
for each distribution calendar year is the lesser of:
(1) the quotient obtained by dividing the Participant's Account balance
by the distribution period in the Uniform Lifetime Table set forth in Section 1.401(a)(9) -9,
VI-8
Q &A -2, of the Treasury regulations, using the Participant's age as of the Participant's birthday in
the distribution calendar year; or
(2) if the Participant's sole designated Beneficiary for the distribution
calendar year is the Participant's spouse, the quotient obtained by dividing the Participant's
Account balance by the number in the Joint and Last Survivor Table set forth in Section
1.401(a)(9) -9, Q &A -3, of the Treasury regulations, using the Participant's and spouse's attained
ages as of the Participant's and spouse's birthdays in the distribution calendar year.
(ii) Lifetime Required Minimum Distributions Continue Through Year of
Participant's Death. Required minimum distributions will be determined under this Subsection
(c) beginning with the first distribution calendar year and up to and including the distribution
calendar year that includes the Participant's date of death.
(d) Required Minimum Distributions After Participant's Death:
(i) Death On or After Date Distributions Begin.
(1) Participant Survived by Designated Beneficiary. If the
Participant dies on or after the date distributions begin and there is a designated Beneficiary, the
minimrun arnotmt that will be distributed 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
longer of the remaining life expectancy of the Participant or the remaining life expectancy of the
Participant's designated Beneficiary, determined as follows:
a. The Participant's remaining life expectancy is calculated
using the age of the Participant in the year of death, reduced by one for each subsequent year.
b. If the Participant's surviving spouse is the Participant's sole
designated Beneficiary, the remaining life expectancy of the surviving spouse is calculated for
each distribution calendar year after the year of the Participant's death using the surviving
spouse's age as of the spouse's birthday in that year. For distribution calendar years after the
year of the surviving spouse's death, the remaining life expectancy of the surviving spouse is
calculated using the age of the surviving spouse as of the spouse's birthday in the calendar year
of the spouse's death, reduced by one for each subsequent calendar year.
C. If the Participant's surviving spouse is not the Participant's
sole designated Beneficiary, the designated Beneficiary's remaining life expectancy 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 year.
(2) No Designated Beneficiary. If the Participant dies on or after the
date distributions begin and there is no designated Beneficiary as of September 30 of the year
after the year of the Participant's death, the minimum amount that will be distributed 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 year of death, reduced by one for each
subsequent year.
VI -9
(ii) Death Before Date Distributions Begin.
(1) Participant Survived by Designated Beneficiary. If the
Participant dies before the date distributions begin and there is a designated Beneficiary, the
minimum amount that will be distributed 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
remaining life expectancy of the Participant's designated Beneficiary, determined as provided in
Subsection (i).
(2) No Designated Beneficiary. If the Participant dies before the date
distributions begin and there is no designated Beneficiary as of September 30 of the year
following the year of the Participant's death, distribution of the Participant's entire interest will
be completed by December 31 of the calendar year containing the fifth anniversary of the
Participant's death.
(3) Death of 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 Beneficiary, and the surviving
spouse dies before distributions are required to begin to the surviving spouse under Subsection
(b)(ii)(1), this Section 6.15(ii) will apply as if the surviving spouse were the Participant.
(e) Definitions:
(i) Designated Beneficiary. The individual who is designated as the
Beneficiary under Section 6.11 of the Plan and is the designated Beneficiary under Section
401(a)(9) of the Internal Revenue Code and Section 1.401(a)(9) -4 of the Treasury regulations.
(ii) Distribution Calendar Year. A Calendar Year for which a minimum
distribution is required. For distributions beginning before the Participant's death, the first
Distribution Calendar Year is the calendar year immediately preceding the Calendar Year which
contains the Participant's Required Beginning Date. For distributions beginning after the
Participant's death, the first Distribution Calendar Year is the calendar year in which
distributions are required to begin under Subsection (b)(H). The Required Minimum Distribution
for the Participant's first Distribution Calendar Year will be made on or before the Participant's
Required Beginning Date. The Required Minimum Distribution for other Distribution Calendar
Years, including the Required Minimum Distribution for the Distribution Calendar Year in
which the Participant's Required Beginning Date occurs, will be made on or before December 31
of that distribution calendar year.
(iii) Life Expectancy. Life Expectancy as computed by use of the Single Life
Table in Section 1.401(a)(9) -9, Q &A -1 of the Treasury regulations.
(iv) Participant's Account Balance. The Account Balance as of the last
valuation date in the calendar year immediately preceding the distribution calendar year
(valuation calendar year) increased by the amount of any contributions made and allocated or
forfeitures allocated to the Account Balance as of dates in the valuation calendar year after the
valuation date and decreased by distributions made in the valuation calendar year after the
valuation date. The Account Balance for the valuation calendar year includes any amounts
VI -10
rolled over or transferred to the Plan either in the valuation calendar year or in the distribution
calendar year if distributed or transferred in the valuation calendar year.
(f) Waiver of 2009 Required Distributions: Notwithstanding the preceding
subsections of this Article, a Participant or Beneficiary who would have been required to receive
Required Minimum Distributions for 2009 but for the enactment of Section 401(a)(9)(H) of the
Code ( "2009 RMDs "), and who would have satisfied that requirement by receiving distributions
that are (1) equal to the 2009 RMDs or (2) one or more payments in a series of substantially
equal distributions (that include the 2009 RMDs) made at least annually and expected to last for
the life (or life expectancy) of the Participant, the joint lives (or joint life expectancy) of the
Participant and the Participant's designated Beneficiary, or for a period of at least 10 years
(`Extended 2009 RMDs "), will receive those distributions for 2009 unless the Participant or
Beneficiary chooses not to receive such distributions. Participants and Beneficiaries described in
the preceding sentence will be given the opportunity to elect to stop receiving the distributions
described in the preceding sentence. A direct rollover will be offered only for distributions that
would be eligible rollover distributions without regard to Section 401(a)(9)(H).
6.16 Withdrawals from Participant Rollover Account: A Participant may request and
receive a distribution from his Participant Rollover Account at any time, even if he or she has not
terminated employment, unless the rollover was from a defined benefit retirement plan
sponsored by the Employer.
6.17 Forfeiture of Benefits: [Reserved]
V1 -11
ARTICLE VII.
Notices
7.1 Notice to Oklahoma Municipal Retirement Fund: As soon as practicable after a
Participant ceases to be in the employ of the Employer, the Committee shall give written notice
to the Oklahoma Municipal Retirement Fund. The notice shall include such of the following
information and directions as are necessary or advisable under circumstances:
(a) name and address of the Participant;
(b) reason he ceased to be in the Employer's employ;
(c) name and address of the Beneficiary or Beneficiaries in case of Participant's
death;
(d) percentage or amount to which such Participant is entitled in case of termination
of employment;
(e) time, manner and amount of payments to be made to such Participant; and
(f) information required to complete the Trustee's Withholding Election Form.
As soon as practicable after the Committee learns of the death of a Participant, it shall give like
notice to the Oklahoma Municipal Retirement Fund.
7.2 Subsequent Notices: At any time and from time to time after giving the notice as
provided for in Section 7.1, the Committee may modify such original notice or any subsequent
notice by means of a further written notice or notices to the Oklahoma Municipal Retirement
Fund, but any action taken or payments made by the Oklahoma Municipal Retirement Fund
pursuant to a prior notice shall not be affected by a subsequent notice.
7.3 Copy of Notice: A copy of each notice provided for in Sections 7.1 and 7.2 shall be
mailed by the Committee to the Participant or to each Beneficiary involved, as the case may be,
but if, for any reason, such copy is not sent or received, that fact shall not affect the validity of
any notice to the Oklahoma Municipal Retirement Fund nor the validity of any action taken or
payment made pursuant thereto.
7.4 Reliance Upon Notice: Upon receipt of any notice as provided in this Article VII, the
Oklahoma Municipal Retirement Fund shall promptly take whatever action and make whatever
payments are called for therein, it being intended that the Oklahoma Municipal Retirement Fund
may rely upon the information and directions in such notice absolutely and without question.
However, the Oklahoma Municipal Retirement Fund may call to the attention of the Committee
any error or oversight which the Oklahoma Municipal Retirement Fund believes to exist in any
notice.
VII -1
ARTICLE VIII.
Amendment and Termination
8.1 Termination of Plan: The Employer may at any time, effective as specified, terminate
the Plan and may direct and require the Oklahoma Municipal Retirement Fund to liquidate the
Fund. In the event the Employer shall for any reason cease to exist, the Plan shall terminate and
the Fund shall be liquidated. In the event of the termination, partial termination, or complete
discontinuance of contributions hereunder, the Account balances of each Participant will become
nonforfeitable.
8.2 Suspension and Discontinuance of Contributions: If the governing body of the
Employer decides it is impossible or inadvisable to continue to make contributions to the Plan, it
shall have the power by appropriate resolution or decision to:
(a) suspend contributions to the Plan;
(b) discontinue contributions to the Plan; or
(c) terminate the PIan.
Suspension shall be a temporary cessation of contributions and shall not constitute or require a
termination of the Plan. A discontinuance of contributions shall not constitute a formal
termination of the Plan and shall not preclude later contributions but all Municipality
Contribution Accounts not theretofore fully vested shall become fully vested in the respective
Participants notwithstanding the provisions of Section 6.4. In such event, Employees who
become eligible to enter the Plan subsequent to the discontinuance shall receive no benefits.
After the date of a discontinuance of contributions, the Trust shall remain in existence as
provided in this Section 8.2 and the provisions of the Plan and Trust shall remain in force. A
certified copy of such decision or resolution shall be delivered to the Oklahoma Municipal
Retirement Fund, and as soon as possible thereafter the Oklahoma Municipal Retirement Fund
shall send or deliver to each Participant or Beneficiary concerned a copy thereof.
8.3 Liquidation of Trust fund: Upon a complete termination or upon a partial termination
of the Plan, unless the Employer's successor shall elect to continue the Plan, the Accounts of all
Participants and Beneficiaries shall thereupon be and become frilly vested. Upon a complete
termination, the Oklahoma Municipal Retirement Fund shall convert the proportionate interest of
such Participants and Beneficiaries in the Trust Fund to cash and, after deducting all charges and
expenses, the Oklahoma Municipal Retirement Fund shall adjust the balances of such Accounts
as provided in Section 5.5 treating the termination date as the current Valuation Date.
Thereafter, the Oklahoma Municipal Retirement Fund shall distribute as soon as
administratively feasible the amount to the credit of each such Participant and Beneficiary as the
Committee shall direct.
8.4 Amendments: Each Employer agrees to adopt any amendments to this Plan which are
necessary for an initial or continued determination that the Plan is a qualified, tax exempt plan
under Sections 401(a) and 501(a) of the Code. Any such amendments will be an amendment of
the Employer's separate Plan if approved by the Trustee. The Employer may amend its separate
VIII -1
Plan in any respect and at any time, subject to the limitations of the Plan, by amendment of or
addition to the Joinder Agreement. However, the Oklahoma Municipal Retirement Fund
reserves the right to approve all Employer amendments.
8.5 Authority of Volume Submitter Practitioner to Amend for Adopting Employers:
The Volume Submitter Practitioner (the "Practitioner ") will amend the Plan on behalf of all
adopting employers, including those employers who have adopted the Plan prior to this amended
and restated Plan, for changes in the Code, regulations, revenue rulings, other statements
published by the Internal Revenue Service, including model, sample or other required good faith
amendments, but only if their adoption will not cause the Plan to be individually designed, and
for corrections of prior approved plans. These amendments will be applied to all employers who
have adopted the Plan. An employer will not be considered to have an individually designed plan
merely because the employer amends administrative provisions of the trust or custodial account
document (such as provisions relating to investments and the duties of trustees), provided the
amended provisions are not in conflict with any other provision of the plan and do not cause the
plan to fail to qualify under Section 401(a) of the Code. For this purpose, an amendment
includes modification of the language of the trust or custodial account document and the addition
of overriding language.
The Practitioner will no longer have the authority to amend the plan on behalf of any adopting
employer as of either: (1) the date the Internal Revenue Service requires the employer to file
Form 5300 as an individually designed plan as a result of an employer amendment to the Plan to
incorporate a type of plan not allowable in the Volume Submitter program, as described in Rev.
Proc. 2011 -49, or (2) as of the date the Plan is otherwise considered an individually designed
plan due to the nature and extent of the amendments. If the Employer is required to obtain a
determination letter for any reason in order to maintain reliance on the advisory letter, the
Practitioner's authority to amend the Plan on behalf of the adopting employer is conditioned on
the Plan receiving a favorable determination letter.
The Practitioner will maintain, or have maintained on its behalf, a record of the employers that
have adopted the Plan, and the Practitioner will make reasonable and diligent efforts to ensure
that adopting employers have actually received and are aware of all Plan amendments and that
such employers adopt new documents when necessary. This Section supersedes other provisions
of the Plan to the extent those other provisions are inconsistent with this Section.
VIII -2
ARTICLE IX.
Employment Transfers
9.1 Transfers from This Plan:
(a) To Another Category with This Employer: If a Participant is employed by the
Employer and is transferred to employment with this Employer but under another department,
classification or category, so that he is no longer eligible to participate in this Plan, such
participation shall thereupon cease and his Account balance shall remain in the Fund and will
continue to accrue interest but he will not continue to accrue Service for the purpose of
additional vesting credit for benefits under this Plan. However, if an Employee participates in
any other plan sponsored by the Employer within the Fund, he or she will continue to accrue
service under this Plan for vesting purposes only.
(b) To Another Municipality: If a Participant's employment by the Employer is
terminated by virtue of his transfer to employment with another Municipality, his membership in
this Plan shall thereupon cease and he shall be subject to the following rules and requirements
relating to this Plan and his right and benefits hereunder, to -wit:
(i) if he is fully vested under this Plan as of the date of such employment
transfer, he shall be entitled to take any distribution, full or partial, without any effect on his
current vesting status; or
(ii) if he is not fully vested under this Plan as of the date of such employment
transfer, and Ile is, immediately upon such transfer of employment, covered by the retirement
system under which such other Municipality participates in the Oklahoma Municipal Retirement
Fund, he will continue to accrue Service for the purpose of additional vesting credit for benefits
under this Plan. However, upon any distribution (that would not be optional to an active
employee), full or partial, vesting will stop and any unvested balance, if any, will be forfeited.
9.2 Transfers to This Plan:
(a) From Another Category with This Employer: If a person becomes a
Participant immediately upon his transfer from full -time, regular employment with this Employer
under another department, classification or category where he is ineligible for membership only
because of the type of such employment, his Service accrued by virtue of such prior employment
shall not be counted in determining his vesting credit for benefits hereunder.
(b) From Another Municipality: If a person becomes a Participant immediately
upon his transfer from full -time, regular employment with a Municipality other than this
Employer, his Service accrued by virtue of such prior employment shall be counted in
determining his vesting credit for benefits hereunder, and he shall also be subject to all the other
provisions of this Plan. A Participant's eligibility for membership under this Plan will be
determined by applying the eligibility requirements in the Joinder Agreement as though the date
which his credited Service from the other Municipality began was his date of employment with
this Employer. Service from such prior employment will however be ignored in its entirety upon
any distribution from that Municipality, full or partial, if taken prior to its full vesting.
IX -1
(c) Previously Fully Vested With Another Municipality: With respect to a
Participant who was previously 100% vested in any other Municipality's qualified retirement
plan prior to becoming a Participant in this Plan, such Participant's "Service" for purposes of
determining years of service for vesting under this Plan shall include the Participant's last
continuous period during which the Participant was an employee of the other Municipality.
9.3 Notice of Transfers: Immediately after any transfer of employment referred to in
Sections 9.1 or 9.2, the transferred Participant shall give written notice of such transfer to the
Authorized Agent on a form furnished by the Authorized Agent. Such Participant shall not be
penalized, however, for failure to give such notice. The Authorized Agent shall give immediate
notice in writing of such transfers to the Trust Service Provider and the Committee.
9.4 Transfer from Other Qualified Plans: The Employer may cause to be transferred to
the Oklahoma Municipal Retirement Fund all or any of the assets held in respect to any plan or
trust which satisfied the applicable requirements of the Code relating to qualified plans and
trusts, which is maintained by the Employer for the benefit of its Employees. Any such assets so
transferred shall be accompanied by written instructions from the Employer, or the trustee or
custodian or the individual holding such assets, setting forth the Participants for whose benefit
such assets have been transferred and showing separately the respective contributions by the
Employer and by the Participants and the current value of the assets attributable thereto. Upon
receipt of such assets and instructions the Oklahoma Municipal Retirement Fund shall thereafter
proceed in accordance with the provisions of the Fund.
9.5 Rollover Contributions: A Participant who is or was entitled to receive an eligible
rollover distribution, as defined in Code Section 402(c)(4) and Treasury Regulations issued
thereunder, from a qualified plan described in Section 401(a) or 403(a) of the Code (including
after -tax employee contributions), an annuity contract described in Section 403(b) of the Code
(including after -tax employee contributions, or 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 political subdivision of a state, or an individual retirement account may elect to
contribute all or any portion of such distribution to the Trust directly from such qualified plan,
annuity contract or eligible plan, or within 60 days of receipt of such distribution to the
Participant. Rollover Contributions shall only be made in the form of cash, or, if and to the
extent permitted by the Employer with the consent of the Trustee, promissory notes evidencing a
plan loan to the Participant; provided, however, that Rollover Contributions shall only be
permitted in the form of promissory notes if the Plan otherwise provides for loans.
The Committee shall develop such procedures and require such information from
Participants as it deems necessary to ensure that amounts contributed under this Section 9.5 meet
the requirements for tax - deferred rollovers established by this Section 9.5 and by Code Section
402(c). No Rollover Contributions may be made to the Plan until approved by the Committee.
If a Rollover Contribution made under this Section 9.5 is later determined by the
Administrator not to have met the requirements of this Section 9.5 or of the Code or Treasury
regulations, then, within a reasonable time after such determination is made, the amounts then
held in the Trust attributable to such Rollover Contribution shall be distributed to the Employee.
IX -2
A Participant's Rollover Contributions Account shall be subject to the terms of the Plan
except as otherwise provided in this Section 9.5.
Notwithstanding any other provision of this Section 9.5, the Employer may direct the
Trustee not to accept Rollover contributions.
9.6 Transfer to Other Qualified Plans: The Employer, by written direction to the
Oklahoma Municipal Retirement Fund, may transfer some or all of the assets held under the
Fund to another plan or trust meeting the requirements of the Code relating to qualified plans and
trusts. In the case of any merger or consolidation with, or transfer of assets and liabilities to, any
other plan, provisions shall be made so that each Participant in the Plan on the date thereof (if the
Plan then terminated) would receive a benefit immediately after the merger, consolidation or
transfer which is equal to or greater than the benefit he would have been entitled to receive
immediately prior to the merger, consolidation or transfer (if the Plan had then terminated).
9.7 Rollover to Another PIan or IRA: Notwithstanding any provision of the Plan to the
contrary that would otherwise limit a Distributee's election under this Section, a Distributee may
elect, at the time and in the manner prescribed by the Committee, to have any portion of an
Eligible Rollover Distribution paid directly to an Eligible Retirement Plan specified by the
Distributee in a Direct Rollover. The Committee shall establish procedures for implementing
such Direct Rollover distribution.
(a) Definitions: For purposes of this Section 9.7, the following definitions shall
apply:
W "Eligible Rollover Distribution ": An "Eligible Rollover Distribution" is
any distribution of all or any portion of the balance to the credit of the Distributee, except that an
Eligible Rollover Distribution does not include: any distribution that is one of a series of
substantially equal periodic payments (not less frequently than annually) made for the life (or life
expectancy) of the Distributee or the joint lives (or joint life expectancies) of the Distributee and
the Distributee's designated Beneficiary, or for a specified period of 10 years or more; any
distribution to the extent such distribution is required under Section 401(a)(9) of the Code; the
portion of any distribution that is not includable in gross income (determined without regard to
the exclusion for net unrealized appreciation with respect to Employer Stock); and any
distributions attributable to a hardship. With respect to distributions made after December 31,
2001, for purposes of the direct rollover provisions in Section 9.7 of the Plan, a portion of a
distribution shall not fail to be an eligible rollover distribution merely because the portion
consists of after -tax employee contributions which are not includible in gross income. However,
such portion may be transferred only to (i) an individual retirement account or annuity described
in Section 408(x) or (b) of the Code or, effective for distributions on or after January 1, 2008, a
Roth individual retirement account of annuity described in Section 408A of the Code, or (ii) a
qualified defined contribution plan described in Section 401(a) or 403(a) of the Code that agrees
to separately account for amounts so transferred, including separately accounting for the portion
of such distribution which is includible in gross income and the portion of such distribution
which is not so includible.
(ii) "Eligible Retirement Plan ": An "Eligible Retirement Plan" is an
individual retirement account described in Section 408(a) of the Code, an individual retirement
IX -3
annuity described in Section 408(b) of the Code, an armuity plan described in Section 403(a) of
the Code, or a qualified trust described in Section 401(a) of the Code, an annuity contract
described in Section 403(b) of the Code and 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 political subdivision of a state and which agrees to separately account for amounts
transferred into such plan from. this Plan; or, effective January 1, 2008, a Roth IRA described in
Code Section 408A(b), that accepts the Distributee's Eligible Rollover Distribution. However,
in the case of an Eligible Rollover Distribution to the surviving spouse or a Participant's
surviving Beneficiary, an Eligible Retirement Plan is an individual retirement account or
individual retirement annuity. The definition of Eligible Retirement Plan shall also apply in the
case of a distribution to a surviving spouse, or to a spouse or former spouse who is the alternate
payee under a qualified domestic relation order, as defined in Section 414(p) of the Code. If any
portion of an Eligible Rollover Distribution is attributable to payments or distributions from a
designated Roth account, an Eligible Retirement Plan with respect to such portion shall include
only another designated Roth account of the individual from whose account the payments or
distributions were made, or a Roth IRA of such individual. In the case of a nonspouse
beneficiary, the direct rollover may be made only to an individual retirement account or annuity
described in Code Section 408(a) or 408(b) ( "IRA ") that is established on behalf of the
designated Beneficiary and that will be treated as an inherited IRA pursuant to the provisions of
Code Section 402(c)(ii). Further, the determination of any required minimum distribution under
Code Section 401(a)(9) that is ineligible for rollover shall, be made in accordance with IRS
Notice 2007 -7, Q &A 17 and 18, 2007 -5 I.R.B. 395.
(iii) "Distributee ": A "Distributee" includes a Participant or former
Participant. In addition, the Participant's spouse or former Participant's surviving spouse or
surviving Beneficiary (effective January 1, 2007) and the Participant's or former Participant's
spouse or former spouse who is the alternate payee under a qualified domestic relations order, as
defined in Section 414(p) of the Code, are distributees with regard to the interest of the spouse or
former spouse.
(iv) "Direct Rollover ": A "Direct Rollover" is a payment by the Plan directly
to the Eligible Retirement Plan specified by the Distributee.
9.8 Requirements for Rollover by Individuals: An Employee (whether or not a Participant
under this Plan), who, as a result of a termination of another plan qualified under Section 401(a)
of the Code, a termination of employment, disability or attainment of age 59%2 years, has had
distributed to him his entire interest in a plan which meets the requirements of Section 401(a) of
the Code (hereinafter referred to as the "Other Plan ") may, in accordance with procedures
approved by the Committee, transfer all or any part of the distribution received from the Other
Plan to the Trustees under this Plan, provided the following conditions are met:
(a) the transfer occurs on or before the 60th day following his receipt of the
distribution from the Other Plan, or, if such distribution had previously been deposited in an
individual retirement account (as defined in Section 408 of the Code), the transfer occurs on or
before the 60th day following his receipt of such distribution, plus earnings thereon from such
individual retirement account;
IX -4
(b) the distribution from the Other Plan qualifies as a lump sum distribution within
the meaning of Subsection 402(e)(4)(A) of the Code or is a result of a termination of another
plan qualified under Section 401(a) of the Code; and
(c) the amount transferred shall not exceed the distribution he received from the
Other Plan, less the amount, if any, considered contributed by him in accordance with Subsection
402(e)(4)(D)(i) of the Code, plus earnings thereon during the period, if any, in which the amount
was held in an individual retirement account.
9.9 Transfers From Another Qualified Plan:
(a) With respect to an Employee (whether or not a Participant under this Plan), who
has an undistributed account balance in another plan which meets the requirements of Section
401(a) of the Code (hereinafter referred to as the 'Other Plan "), the Committee may, in its sole
discretion, approve a direct transfer of such account balance from the Other Plan to the Trustees
under this Plan.
(b) If the Plan receives a direct transfer (by merger or otherwise) of elective
contributions (or amounts treated as elective contributions) under a plan with a Section 401(k)
arrangement, the distribution restrictions of Sections 401(k)(2) and (10) of the Code continue to
apply to those transferred elective contributions.
9.10 Procedures: With respect to transfers under either Section 9.8 or 9.9 herein, the
Committee shall develop such procedures, and may require such information from an Employee
or the fiduciaries of the Other Plan desiring to make such a transfer, as it deems necessary or
desirable to determine that the proposed transfer will meet requirements of this Article and the
law. Upon approval by the Committee, the amount transferred shall be deposited in the Trust
Fund and shall be credited to a Rollover Account established in the Employee's name. Such
Account shall be 100% vested in and nonforfeitable by the Employee, shall share in increases
and decreases thereon determined in accordance with the Plan, but shall not share in Employer
Contributions or Forfeitures. Upon termination of employment, the total amount of Employee's
Participant Rollover Account shall be distributed as part of his Benefit.
IX -5
ARTICLE X.
Administration
10.1 Administration: The Plan shall be administered by the Committee which is hereby
created and established and which shall be composed of the members of the City Council of the
Employer. The duties of the Committee shall be performed without compensation other than the
compensation, if any, which they receive as officers of the Employer unless additional
compensation is specifically provided for by action of the City Council. Any usual and
reasonable expenses incurred by the Committee in the administration of this Fund and Plan shall
be paid by the Employer.
(a) Committee: The Committee shall have such powers as may be necessary to
discharge its duties hereunder and under the document creating the Oklahoma Municipal
Retirement Fund, and under the contract for the pooling of the Fund with similar funds of other
Municipalities. Such power's shall include but not be limited to the following power's and duties:
(1) to delegate to, specify, direct, and supervise the performance of duties of
the Authorized Agent, as the agent of the Employer and Committee in matters relating to the
Plan, the Fund, and the Oklahoma Municipal Retirement Fund, including but not limited to, the
duties set forth below in Subsection 10.1(b) and including any duties of the Employer under the
Plan, or as set forth in this Subsection 10.1(a);
(2) acting by direction to the Authorized Agent to file a petition for
nomination, or otherwise nominate, and cause the ballot for the election of Trustees of the
Oklahoma Municipal Retirement Fund;
(3) to construe and interpret the Plan and resolve any ambiguities with respect
to any of the terms and provisions thereof as written and as applied to the operation of the Plan;
(4) to decide all questions of eligibility and determine the amount, manner and
time of payment of any benefits hereunder;
(5) to prescribe procedures to be followed by Participants in filing
applications for benefits;
(6) to make a determination as to the right of any person to a benefit and to
afford any person dissatisfied with such determination the right to a hearing thereon;
(7) to receive from the Employer, the Trustees, the Trust Service Provider and
the Authorized Agent, such information as shall be necessary for the proper administration of the
Plan;
(S) to prepare and distribute, in such manner as it determines to be
appropriate, information explaining the Plan;
(9) to furnish the Employer, upon request, such annual reports with respect to
the administration of the Plan as are reasonable and appropriate;
2015.05.06 Clean ONfRF'5faster Defined CoirtriDnlion Plan (2015).doc X -1
(10) to receive and review reports from the auditor appointed by the Trustees,
the City Treasurer and City Auditors, of the financial condition of the Fund;
(11) to have full power, to manage and control, the Plan and Fund and to
authorize in writing, all payments from the Fund by written direction of the Authorized Agent, or
otherwise;
(12) to sue in any court of competent jurisdiction for the enforcement of any
contract, claim or other right, and to defend against or to compromise, settle or otherwise dispose
of any claim or suit against the Employer, the Plan, or the City Treasurer, as Treasurer of the
Plan; and
(1 to appoint such person or persons as necessary to perform the following:
a. to receive and separately account for, payments, appropriations,
apportiomnents, allocations, payroll deductions, and any other assets, which are for, or
consist of contributions or assets under the Plan for the Fund, which are made by the
Employer, the Participants, or from any other source;
b. to transfer, remit, pay over and deliver, upon the written direction of
the Authorized Agent, as soon as practicable after his receipt thereof, all such
contributions and assets, to the Oklahoma Municipal Retirement Fund for management
and investment;
c, to keep as evidence and permanent records, all such written directions
of the Authorized Agent for such transfers and disbursements, maintain accurate accounts
and records of such receipts, transfers and disbursements, and keep such other records
and furnish such information and advice to the Employer, the City Council, the
Conunittee and the Authorized Agent as may be necessary and proper for the
performance of such duties in coordinating the administration and operation of the Plan;
d. maintain such records including vital statistics on health, age, sex,
birth, death, Compensation and length of Service of all the Participants of the Employer
or their beneficiaries who are included in the Plan or who are, or may become eligible for
such inclusion, as are necessary for the proper administration of the Plan, and furnish
such information as is requested by the Authorized Agent, or is requested by the
Administrator;
e. notify the Authorized Agent when any Participant is eligible for
Retirement under the Plan; and
f attend meetings of the Committee while matters pertaining to the Plan,
the Employees or their beneficiaries are under consideration.
The Committee shall have no power to waive or fail to apply any requirements of
eligibility for a Benefit under the Plan. The Committee may adopt such rules, regulations and
actuarial tables as it deems necessary or desirable to administer the Plan. All such rules,
2015.05.06 Clean OMRFtYlnster Defined Contributinn Plat (2015).dac X_2
regulations and decisions shall be uniformly and consistently applied to all Employees in similar
circumstances.
Any such rule or decision which is not inconsistent with the provisions of the Plan shall
be conclusive and binding upon all .persons affected by it and there shall be no appeal from any
ruling by the Committee which is within its authority.
When making a determination or calculation, the Committee shall be entitled to rely upon
information furnished by the Trustees, the Trust Service Provider, the Employer, the Authorized
Agent, the legal counsel of the Employer, or the actuary for the Plan.
(b) Authorized Agent: An Authorized Agent shall be designated in writing by the
Committee and shall act as the agent of the Employer (but not the agent of the Trustees or the
Trust Service Provider of the Oklahoma Municipal Retirement Fund) in matters pertaining to the
Plan, the Fund and the Oklahoma Municipal Retirement Fund, to centralize in one person the
local administration and coordination thereof, and to file payroll and contribution information, to
file claims, forms and applications for Participants, and to advise Participants, the Employer and
the Committee. The Authorized Agent, under the control and direction of the Committee, shall
have such general duties as the Employer and the Committee may deem necessary and proper for
such purposes, which duties shall include but not be limited to, the following:
(1) to coordinate the deduction of Participant contributions and to see that
Employer and Participant contributions are properly received and forwarded promptly to the
Oklahoma Municipal Retirement Fund for management and investment;
(2) to forward any communications directed to Participants and beneficiaries
by the Trustees, the Trust Service Provider or the Oklahoma Municipal Retirement Fund;
(3) to lend assistance to Participants and beneficiaries in filing applications for
benefits, and in communicating with the Employer, the Committee and the Trustees or the Trust
Service Provider of the Oklahoma Municipal Retirement Fund and to forward such
communications to the addressees;
(4) to assist the Committee in determining whether or not Employees are
eligible for participation in the Plan;
(5) to certify at the direction of the Committee that a Participant is on an
authorized leave of absence, paid or unpaid; and
(6) to file at the direction of the Committee a petition or nomination, and cast
a ballot for election of Trustees of the Oklahoma Municipal Retirement Fund.
(c) Plan Counselor: The Committee of the Employer shall appoint the legal advisor
of the Employer and the Committee, and such legal advisor shall represent them in any legal
matters, proceedings, or litigation.
10.2 Bonds: No bond to secure the performance of administrative duties in the operation of
the Plan and Fund, shall be required of any persons or organizations unless required by law, or
2015.05.06 Clean OWFMnster DeJiuod Contribution Plan (201S).doc X -3
unless required by the Trust Indenture establishing The Oklahoma Municipal Retirement Fund,
or unless required by the Employer for any persons or organizations engaged in the
administration of the Plan. If such a bond is required by law, the Trustees or the Employer, the
premiums therefor shall be paid as expenses of the Oklahoma Municipal Retirement Fund as to
its members, agents, employees, Municipal Retirement Fund, or as expenses of the Employer as
to the administration of the Plan. Any agents, officials or Employees of the Employer engaged
in the administration of the Plan shall be covered as to the performance of such administrative
duties, by any official or other bond covering their regular duties otherwise.
10.3 Benefit Payments: All benefits are to be paid pursuant to the provisions of the Plan out
of the applicable portion of the Oklahoma Municipal Retirement Fund.
10.4 Abandonment of Benefits:
(a) If, anytime following the date either of a Participant or Beneficiary of a deceased
Participant becomes entitled to receive any non - deferred benefits under the Plan, then, if the
whereabouts of such Participant or Beneficiary is unknown, the benefits may be forfeited in certain
limited circumstances as provided hereafter. If the Committee has mailed to the Participant or
Beneficiary notice of the present right to receive benefits, and the Committee mails such notice
again after one year, then, if no claim has been received by the second anniversary of the first
mailing of the notice, the Accounts representing unclaimed Benefits (including those holding
Employee contributions) can be forfeited pursuant to Section 5.4 herein.
(b) Each Participant and Beneficiary shall file with the Committee, from time to time in
writing, their post office address and each change of post office address, if any, and the Committee
shall not be obliged to search for or ascertain the whereabouts of any Participant or Beneficiary.
Any communication addressed to a Participant or Beneficiary at their last post office address filed
with the Committee, or if no such address was filed, then at their last post office address as shown
on the Employer's records, shall be binding on the Participant and the Beneficiary for all purposes
of the Plan and Trust.
(c) In the event that the whereabouts of a lost Participant, or lost Beneficiary of a
deceased Participant, ever becomes known to the Committee, and either of such parties makes a
claim for benefits, the Committee shall, if the Plan is in existence, reinstate any Benefits which have
been previously forfeited to satisfy such claim; provided, the amount reinstated shall, in any event,
be equal to the amount of the forfeited benefit unadjusted by any increases or decreases under
Section 5.6 herein occurring after such forfeitures were allocated. Reinstated Forfeitures shall be
satisfied from the following sources in the priority indicated: (i) unallocated Forfeitures,
(ii) unallocated Fund increases, or (iii) Employer contributions which the Employer shall make if
necessary to satisfy such reinstatement. For purposes of this Subsection (c), the limitations under
Section 415 of the Code shall not apply.
10.5 Benefits Payable to Incompetents: Any payments due hereunder to a minor or other
person tinder legal disability may be made, at the discretion of the Committee, (i) to a parent,
spouse, relative by blood or marriage, or (ii) the legal representative of the said person. The
Committee shall not be required to see to the application of any such payment, and the payee's
2015.05.06 Clean OtNRF d4nster Defnetl Cmttribttliat Plan (20I5).doe X -4
receipt shall be a full and final discharge of all responsibility hereunder of the Employer, the
Committee and the Trustees.
2015.05.06 Clean 0MRFNIaskr D�jned Contribution Plan (2015).dnc X -5
ARTICLE XI.
General
11.1 USERRA: Notwithstanding any provision of this 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. A Participant retuning
from military service shall not be entitled to catch -up on Pick -Up Contributions missed during
such military service.
11.2 Not Contract Between Employer and Participant: Neither the creation of this Plan,
nor any amendment to it, nor the creation of any fund, nor the payment of benefits hereunder
shall be construed as giving any legal or equitable right to any Participant against the Employer
or against the Oklahoma Municipal Retirement Fund, except as provided herein, and all
liabilities under this Plan shall be satisfied, if at all, only out of the Fund held by the Oklahoma
Municipal Retirement Fund. Participation in the Plan shall not give any Participant any right to
be retained in the employ of the Employer, and the Employer hereby expressly retains the right
to hire and discharge any Participant at any time with or without cause, as if this Plan had not
been adopted, and any such discharged Participant shall have only such rights or interests in the
Fund as may be specified herein.
11.3 Payment of Fees: The Employer shall pay a fee in an amount determined and revised
from time to time by the Oklahoma Municipal Retirement Fund.
11.4 Governing Law: The validity, construction and administration of this Plan shall be
determined under the laws of the State of Oklahoma.
11.5 Counterpart Execution: This Plan may be executed in two or more counterparts, as
may be all amendments thereto be executed, and any one of the executed copies shall be deemed
an original.
11.6 Severability: Every provision of this Agreement is intended to be severable. If any term
or provision hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity
shall not affect the validity of the remainder of this Plan.
11.7 Spendthrift Provisions: Benefits payable under this Plan shall not be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge,
garnishment, execution or levy of any kind, either voluntary or involuntary, including any such
liability which is for alimony or other payments for the support of a spouse or former spouse, or
for any other support of a spouse or former spouse, or for any other relative of the Employee,
prior to actually being received by the person entitled to the benefit under the terms of the Plan;
and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge or
otherwise dispose of any right to benefits payable hereunder, shall be void. The Fund shall not
in any manner be liable for, or subject to, the debts, contracts, liabilities, engagements or torts of
any person entitled to benefits hereuider. The preceding provisions shall not apply to the
creation, assignment or recognition of a right to any benefit payable with respect to a Participant
pursuant to a domestic relations order, and does not preclude the Oklahoma Municipal
XI -1
Retirement Fund from complying with a court order requiring deduction from the benefits of a
Participant in pay status for alimony and support payments.
11.8 Maximum Duration: Nothing herein shall be construed to suspend the power of
alienation or prevent the vesting of the interest of any person in the Plan for a longer period than
the duration of the lives of the designated Beneficiaries of a particular interest therein in being at
the time such designation becomes irrevocable, plus twenty -one (21) years; if any provisions
shall be held to violate a rule or law against restraints on alienation or remote vesting, the Plan
shall not be vitiated thereby, but the Plan, or the portion of the Plan thus affected, shall
immediately be distributed to those entitled as their interest shall then appear.
11.9 Number and Gender: Pronouns and other similar words used herein in the masculine
gender shall be read as the feminine gender where appropriate; pronouns and other similar words
used herein in the neuter gender shall be read as the masculine or feminine gender where
appropriate; and the singular form of words shall be read as the plural where appropriate.
11.10 Compensation and Expenses of Administration: If a Trustee, a member of Oklahoma
Municipal Retirement Fund, or a member of the Committee is an Employee of the Employer, he
shall serve without any additional compensation. The Employer may pay all or part of the
expenses of administration of the Plan, including the compensation and expenses of the Trustee,
and any other expenses incurred at the direction of the Oklahoma Municipal Retirement Fund,
including, without limitation, fees of actuaries, accountants, attorneys, investment managers,
investment advisors and other specialists, and any other costs of administering the Plan. To the
extent that any of such expenses are not paid by the Employer, such expenses shall be paid by
the Oklahoma Municipal Retirement Fund out of the Fund. In addition, the Plan or Trustees
shall be authorized to charge to a Participant's Account any direct expenses it incurs in
connection with such Account, which shall include by example, and not by limitation, expenses
resulting from a Participant's QDRO, bankruptcy or default on a Plan loan, and expenses
incurred in attempting to locate a Participant. Trustees shall have the power under this Section in
their sole discretion to determine the items and amounts thereof which should equitably and
reasonably be charged to a particular Account. If such charges exceed the balance in a
Participant's Accounts, the excess shall be charged to the general Trust Fund.
11.11 Incorporation of Trust Agreement: The provisions of the Trust Indenture Establishing
the Oklahoma Municipal Retirement Fund are incorporated into and made a part of this Plan.
11.12 Mistake of Fact: All contributions to the Plan are made subject to the correctness of the
amount. In the event a contribution is made to the Plan and Trust by the Employer under a
mistake of fact concerning the correctness of such contribution, then the Oklahoma Municipal
Retirement Fund shall return such portion of such contribution which is in excess of the amount
that would have been contributed had there not occurred a mistake of fact within one year after
the payment of the contribution to the Oklahoma Municipal Retirement Fund.
In the case of amounts returned pursuant to this Section 11.12, no earnings attributable to
such amounts may be returned to the Employer, but losses attributable thereto shall reduce the
amount returned, and no such return shall reduce the balance of any Participant's Municipality
XI -2
Contribution Accounts to less than the balance which would have been credited thereto had such
amount not been contributed.
11.13 Written Notices: Any reference herein to written notices or documents or notices or
elections in writing shall be deemed to include any method of conununication acceptable to the
Oklahoma Municipal Retirement Fund.
XI -3
IN WITNESS WI•IEREOF, and as conclusive evidence of the adoption of the foregoing
instrument comprising the Plan, the Oklahoma Municipal Retirement Fund, has caused its
corporate seal to be affixed hereto and these presents to be duly executed in its name and behalf
by its proper officers thereunto authorized this 24th day of AprIl , 2015 .
OKLAHOMA MUNICIPAL
{ /RETIREMENT
STATE OF OKLAHOMA )
) ss.
COUNTY OF OKLAHOMA )
BEFO 1,� the undersned a Notary Public i nd fors id County and State, on this
day of�,2 , personally appeare I �, to me known to
be the identical person who subscribed the name of the ORIahorfia Municipal Retirement Fund, a
municipal corporation, to the foregoing instrument as its Chairperson and acknowledged to me
that he executed the same as his free and voluntary act and deed and as the free and voluntary act
and deed of such corporation, for the uses and purposes therein set forth.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, the day and year last above
written.
Not ry Public
My Commission Expi res: r
Ue' 01. c lq My Commission No.:
kRA 0TAR- Y- &BA4,)--------- I
A JO MAUREEN ELUOTT
r Notary Pub4o
I. State ofO
kkhoma
Commission !106006411 ExpUea 8101 0 n
_ _____ ____ _______ _______ _ _ _ _ __
McAFEE ITAFT
A P R O F E 5 5 1 0 N A L C O R P 0 R A T I O N
10TH FLOOR - TWO LEADERSHIP SQUARE
211 NORTH ROBINSON • OKLAHOMA CITY, OK 73102 -7103
(405) 235 -9621 • FAX (405) 235 -0439
N w V,mcafeetaft.com
MEMORANDUM
TO: Oklahoma Municipal Retirement Fund
FROM: McAfee & Taft A Professional Corporation
(John A. Papahronis)
DATE: May 7, 2015
RE: Oklahoma Municipal Retirement Fund Master Defined Contribution Plan and
Joinder Agreement— Summary of Material Changes
The following summary compares the current version of the Oklahoma Municipal
Retirement Fund Master Defined Contribution Plan and Joinder Agreement with the version
recently approved by the Internal Revenue Service:
A. Master Defined Contribution Plan
Sec.
Feature
Current Version
Newiv- Approved Version
L I
Purpose
States the purpose of the Plan.
Adds IRS required sentence that
the type of plan is a "profit
sharing plan."
4.4
Voluntary
Administrative rules for
Removed domiciled in Oklahoma.
Nondeductible
voluntary nondeductible rules.
Contributions
by Participants
4.8(a)
Deferred
Administrative rules for 401(k}
Adds more specificity to
Compensation
contributions.
administration rules for 401(k)
Contributions
elections.
4.8(b)
Dollar
IRS rules for limitations on
Update to language in order to
Limitation on
401(k) deferrals.
fully reflect regulations.
Deferred
Compensation
Contributions
5.5
Valuation of
Administrative rules for valuing
Updated for daily accounting
Account
a participant's account.
system.
OKL AI iONiA CITY TULSA
5.6
Allocation of
Administrative rules for
Updated for daily accounting
Investment
allocating earnings and losses.
system.
Earnings and
Losses
6.5
Initial
Administrative rules for timing
Updated for daily accounting
Distribution
of distribution requests.
system.
Date
6.8
Withdrawals
Administrative rules for timing
Revised to correct for IRS notice
from
of distribution requests.
requirements.
Participant's
Contribution
Accounts
6.8(d)
Pick -up
None.
IRS required language that
contribution
provides that pick -up cannot be
account
withdrawn before termination of
employment.
6.10(e)
Methods of
None.
Added purchase of an annuity
Distribution
alternative.
6.11
Designation of
Does not address voiding of
Provides that beneficiary desig-
Beneficiary
beneficiary designation by
nation may be voided upon
divorce.
divorce under state law.
6.12
Loss of
Participant can lose benefits for
Deleted per IRS request and
Benefits for
Cause.
reserved.
Cause
6.14(b)
Loans to
Administrative rules for timing
Updated for daily accounting
Participants
to establish a loan account.
system.
6.15
Required
Required IRS provisions
Modifications of language per IRS
Minimum
regarding required distributions
request.
Distributions
upon termination of employ-
ment after attainment of age
70' /z.
6.17
Forfeiture of
Oklahoma Statute regarding a
Deleted per IRS request and
Benefits
participant's loss of retirement
reserved,
benefits due to certain causes.
8.5
Authority of
Describes authority of volume
Adds language to clarify that
volume
submitter practitioner.
amendment to trust will not
submitter
necessarily cause plan to become
practitioner
individually designed.
9.1(a)
Transfer to
Addresses changes in employ-
Adds sentence that employee will
another
ment classification of
continue to accrue vesting service
category.
employee.
if employee participates in another
retirement plan of the employer.
9.1(b)
Transfers from
Rules for transfer of parti-
Conforms language to plan admin-
Plan
cipant's employment to another
istration.
Multiple options for common
municipality.
9.2(b)
Transfers to
Provides that when person
Added language to clarify that
Adds additional possible exclusions
Plan
transfers to this Plan from
prior service does not count if
for "Longevity Pay," and accrued
another municipality, prior
participant received distribution
vacation and sick leave paid upon
service counts,
from prior retirement plan.
10.3
Benefit
Administrative rules for benefit
Removes specific requirement of
Added (i) Matching Contribution
Payments
payment authority.
Committee direction.
11.13
Written Notices
None.
Adds new section to describe
Contribution Option."
5.
Thrift Plan
acceptable communication
Forfeitures used to make employer
Option
methods in a daily accounting
contributions.
5.
Fixed Option
System.
B. Joinder Agreement
Sec. I
Feature
Old Version
Newly- Approved Version
2.
Employee
Blank line for variations.
Multiple options for common
variations.
4.
Compensation
Allows the Employer to exclude
Adds additional possible exclusions
certain items from the definition
for "Longevity Pay," and accrued
of Compensation.
vacation and sick leave paid upon
termination of employment.
5.
Plan Design
Included pick -up option, thrift
Added (i) Matching Contribution
plan option, fixed option,
Option and (ii) "No Employer
variable option, 401(k) option
Contribution Option."
5.
Thrift Plan
Forfeitures allocated as
Forfeitures used to make employer
Option
contributions.
contributions.
5.
Fixed Option
Forfeitures allocated as
Reference to Forfeitures deleted
and Variable
contributions.
because addressed in Section 8,
Option
8.
Allocation of
Addresses forfeiture allocations.
Specifies that forfeitures under
Forfeitures
Fixed Option or Variable Option
are allocated in accordance with
selected option.
10.
Vesting
Offered standard options and
Added (i) 100% immediate vesting
individualized alternative,
alternative, and (ii) individualized
alternative, is now subject to IRS
safe harbor guidelines.
12.
Direct Transfer
Not addressed.
Added options for (i) direct
to Other
transfers to other defined
Retirement Plan
contribution plan sponsored by
employer not permitted, and (ii)
direct transfer permitted.
13.
Valuation Date
No options specified.
Provides for the following options:
(i) monthly, (ii) weekly, and (iii)
daily. Will offer daily option only
and when available.
End of Joinder
Adds IRS required disclosure for
Volume Submitter documents.
Weekly
Group
CITY OF OWASSOILEGALS
ATTN: MARSHA HENSLEY
PO BOX 180
OWASSO, OK 74055
Broken Mmw Ledger - Coweta American
O.vesso ROWS, • Wagoner Tdbune
Send Springs Leader - Skiatook Journal
Tulsa Business Is Legal News
OKLAHOMA WEEKLY GROUP
P.O. BOX 26472
RICHMOND, VA 23261 -6472
Account Number
1015023
Date
August 26, 2015
Date
Category
Description
Ad Size
Total Cost
08IM2015
Legal Notices
ORD NO. 1057
2 x 142.00 CL
181.76
sgna2
Published In the August Reporter, Owasso, Tulsa Coun-
N.Oklaho ma, August 26,2015.
CITY OF OWASSO
ORDINANCE 107
NOW COUNCIL
LOF THE CITY BE IT ORDAIED By OF OWA SON OKLAHOMA
THAT TO WIT:
Sectioa 1. That pursuant to the authority conferred by
the laws of the State Of Oklahoma, and for the purpose of
encouraging continuity and meritorious service on the
Part of City employees and thereby promote public effl-
clency, there is hereby authorized created, established,
and approved and adopted, effective as of October 1,
2015, the amended and restated Plan designated Em-
ployee Retirement System of the City of Owasso, Oklaho.
ma, Defined Contribution Plan,' (hereinafter called Sye-
tem), an executed counterpart of which Is marked Ex-
hibif'A" (Joinder Agreement) and Exhibit "B" (amend-
ed and restated plan) and attached hereto as part hereaf.
56atlan2. FUND. A fund is hereby provided for the
exclusive use and benefit of the persons entitled to tiers,
fits under the System. All contributions to such fund
shall be paid over to am received in trust for such Mr-
page by the City. Such Fund shall be pooled for Purposes
Of management and Investment with similar funds of
other Incorporated cities, towns, and municipal trusts In
the State of Oklahoma as a part of the Oklahoma Munici-
Pal Retirement Fund In accordance with the trust agree-
ment of the Oklahoma Municipal Retirement Fund, a
Public trust. The City shall hold wch contributions In
Me form received, and from time to time pay over and
transfer the same to the Oklahoma Municipal Retire-
ment Fund, as duly authorized and directed by the Board
of Trustees. The Fund shall be nonfiscol and shall not be
considered In computing any levy when the annual esb.
mat is made to the County Excise Board.
Section 3. APPROPRIATIONS. The City of Owasso,
Oklahoma, is hereby authorized to Incur the necessary
expenses for the establishment, operation, and adminis-
tration of the System, and to appropriate and ppy the
same. In addition, the City of Owasso, Oklahoma, is
hereby authorized W appropriate annually such amounts
as are required in addition to employee contributions to
maintain me System and the Fund In accordance with
the provisions of the Defined Contribution Plan. Any .p
Propriation so made to maintain the System and Fund
shall be for deterred wages or salaries, and for the Pay-
ment of necessary expenses of operation and administra.
tion to be transferred to the trustees of the Oklahoma
Municipal Retirement Fund for such purposes and shall
be paid into the Fund when available, to be duly trans-
ferred to the Oklahoma Municipal Retirement Fund.
Section 1. EXECUTION. The Mayor and City Clerk be
and they are each hereby authorized and directed to exe-
cute (In counterparts, each of which shall constitute an
original) the System instrument, and to do all other acts
and things necessary, advisable, and proper to put Sold
System and related trust Into full force and effect, and to
make such changes therein as may he necessary to qual-
s °m to) and Sella) of the in-
Code of the United States. The counter-
hereto as Exhibit 'A" and Exhibit 'B',
duly executed as aforesaid simultaneous -
:sage of this Ordinance and made a part
v Man ona comOme me Fund into the Okla-
MO Municipal Retirement Fund as a part thereof, with
nilar funds of such other cities and towns, far purposes
Pooled management and Investment.
58CHan 5 . REPEALER. Any Ordinance Inconsistent
with the terms and provisions of this Ordinance is hereby
ghoma Statutes 1971 and
reaeoled, provided, however, that such repeal shall be
only to the extent of such Inconsistency and in all other
'ublication
respects this Ordinance shall be cumulative of other or-
dinances regulating and governing the subject matter
Iles with all other
complies
covered by this Ordinance.
Section 6. SEVERABILITY. If, regardless of cause,
legal representative of
any section, subsection, paragraph, sentence or Clause of
this Ordinance, Including the System as set forth in Ex-
a, a Weekly newspaper of
hibit "A' and Exhibit '13', is held invalid or to be uncon-
stnutionol, the remaining sections, subsections, par.-
a newspaper qualified to
graphs, sentences, or clauses shall continue in full force
and effect and shall be construed thereafter as being the
entire provisions of this Ordinance.
ad publications as
PASSED AND APPROVED this 18th day of August, 2015.
ghoma Statutes 1971 and
IV Jeri Moberly, Mayor
ATTEST: 7Y Sherry Bishop, City Clerk
Iles with all other
complies
APPROVED AS TO FORM:
1W Julie Lombardi. Cif Aria ne
with reference to legal
publications. That said notice, a true copy of which is attached
hereto was published in the regular edition of said newspaper
during the period and time of publication and not in a
08/26/2015
Newspaper reference: 0000150402 r 10 P e °0 � �,
"7o U`0e
0
t ° o
8
No. OBOD9339
o EXIS. B/1WE016 °
�Cy� IN AND p° Q';
FOR , °0e� ®�
a
Sworn to and subscribed before me this date r O.,
Notary Public
My Commission expires: / /r _ /�l
A BILL. PLEASE PAY FROM INVOICE. THANK YOU
CITY OF OWASSO /LEGALS
ATTN: MARSHA HENSLEY
PO BOX 180
OWASSO, OK 74055
Weekly
Group
Broken Mmw Ledger - Cdaela Amencan
Owasso Reporter - Wagoner Tribune
Send Spriips Leader - SMefapk J..rrwl
Tulsa Business A Legal News
OKLAHOMA WEEKLY GROUP
P.O. BOX 26472
RICHMOND, VA23261 -6472
AMENDED PUBLISHER AFFIDAVIT
Account Number
1015023
Date
August 26, 2015
Date Category Description Ad Size Total Cost
082612015 Legal Notices ORD NO. 1057
150902
Published In the Owasso Reporter, Owosso, Tulsa Coun-
ty. Oklahoma, August 26, 2015.
CITY OF OWASSO
ORDINANCE 1057
AN ORDINANCE AMENDING THE EMPLOYEE
RETIREMENT SYSTEM, DEFINED CONTRIBU-
TION PLAN FOR THE CITY OF OWASSO, OKLAHO-
MA BY ADOPTING A REVISED AND RESTATED
RETIREMENT PLAN; PROVIDING RETIREMENT
BENEFITS FOR ELIGIBLE EMPLOYEES OF THE
CITY OF OWASSO, OKLAHOMA; PROVIDING FOR
PURPOSE AND ORGANIZATION; PROVIDING
FOR DEFINITIONS; PROVIDING FOR ELIGIBILI-
OF
ING, ALLOCATION, AND VALUATION; PKDyiD-
ING BENEFITS; PROVIDING FOR REQUIRED NO-
TICE; PROVIDING FOR AMENDMENTS AND TER-
MINATION; PROVIDING FOR TRANSFER TO
AND FROM OTHER PLANS; CREATING A RE-
TIREMENT COMMITTEE AND PROVIDING FOR
POWERS, DUTIES, AND RIGHTS OF RETIRE-
MENT COMMITTEE; PROVIDING FOR PAY.
MENT OF CERTAIN OBLIGATIONS; PROVIDING
FOR DURATION AND PAYMENT OF EXPENSES;
PROVIDING FOR EFFECTIVE DATE; PROVID-
ING FOR VESTING SCHEDULES; PROVIDING
FOR A FUND TO FINANCE THE SYSTEM TO BE
POOLED WITH OTHER INCORPORATED CITIES,
TOWNS AND THEIR AGENCIES AND INSTRU-
MENTALITIES FOR PURPOSES OF ADMINISTRA-
TION, MANAGEMENT, AND INVESTMENT As
PART OF THE OKLAHOMA MUNICIPAL RETIRE-
MENT FUND; PROVIDING FOR PAYMENT OF
ALL CONTRIBUTIONS UNDER THE SYSTEM TO
THE OKLAHOMA MUNICIPAL RETIREMENT
FUND FOR MANAGEMENT AND INVESTMENT;
PROVIDING FOR REPEALER AND
SEVERABILITY; ADOPTING THOSE AMEND.
MENTS MANDATED BY THE INTERNAL REVE-
NUE CODE.
NOW, THEREFORE, BE IT ORDAINED BY THE
COUNCIL OF THE CITY OF OWASSO, OKLAHOMA,
THAT TO WIT:
Section 1. That Pursuant to the authority conferred by
the laws of the State of Oklahoma, and for the Purpose of
encouraging continuity and meritorious service an the
part of City employees and thereby promote Public effi-
ciency, there is hereby authorized created, established,
and approved and adopted, effective as of October 1,
2015, the amended and restated Plan designated 'Em-
ployee Retirement System of the City of Owasso, Oklaho-
ma, Defined Contribution Plan,' (hereinafter called Sys-
tem), an executed counterpart of which is marked Ex-
hibit "A- (Joinder Agreement) and Exhibit 'B' (amend-
ed and restated plan) and attached hereto as Part hereof.
with the terms and Provisions of this Ordinance Is hereby
repealed, Provided, however, that such repeal shall be
only to the extent of such Inconsistency and in all other
respects this Ordinance shall be cumulative of other or-
dimmes regulating and governing the nubiect matter
covered by this Ordinance.
2 x 142.00 CL 181.76
' Publication
Section 6. SEVERABILITY. It, regardless of Cause,
I a legal representative Of
any section, subsection, paragraph, sentence or clause of
this Ordinance, including the System as set forth in Ex-
hibit 'A" and Exhibit -W, Is held Invalid or to be uncon-
ma, a Weekly newspaper of
Stitutional, the remaining sections, subsections, Para-
graphs, sentences, or clauses shall continue In full force
ia, a newspaper qualified to
and effect and shall be construed thereafter as being the
entire provisions of this Ordinance.
i and publications as
PASSED AND APPROVED this IBM day of August, 2015.
) klahoma Statutes 1971
/s/ Jeri Moberly, Mayor
and
ATTEST: /L Sherry Bishop, City Clerk
APPROVED AS TO FORM:
ld complies With all Other
FUND. A fund Is hereby provided for the
e and benefit of the persons eni(Hetl io bene-
he System. All contributions to such tend
I aver to and received in trust for such Pur-
City. Such Fund shall be pool etl for Purposes
lent and investment with similar funds of
orated cities, towns, and municipal trusts In
Oklahoma as a Part of the Oklahoma M.M&
at Fund in accordance with the trust agree -
Oklahoma Municipal Retirement Fund, a
The City shall hold such contributions in
mlved, and from time to time pay over and
r same To the Oklahoma Municipal Retire -
as duly authorized and directed by the Board
The Fund shall be mrinscal and shalt not be LL.
n computing any levy when the annual esti-
!e to the County Excise Board.
Section 3. APPROPRIATIONS. The City of Owasso,
Oklahoma, Is hereby authorized to incur the necessary
expenses for the establishment, operation, and adminis-
tration of the System, and to appropriate and pev the
same. In addition, the City of Owasso, Oklahoma, is
hereby authorized to appropriate annually such amounts
as are required in addition to employee contributions to
mnfntnin the SvOpm and the Fund in accordance with
Shall be for deferred wages or salaries, one mr me Pay-
ment of necessary expenses of operation and administra-
tion to be transferred to the trustees of the Oklahoma
Municipal Retirement Fund for such purposes and shall
be paid Into the Fund when available, to be duly trans -
ferred to the Oklahoma Municipal Retirement Fund.
Section 4 EXECUTION. The Mayor and City Clerk be
and they are each hereby authorized and directed to exe-
cute (In counterearts, each of which shall constitute an
ariainan the System instrument, and to do all other acts
and things neceS9arv, advisable, and Proper to put said
System and related trust into full force and effect, and to
make such changes therein as may he necessary to qual-
ify the some under sections 401(a) antl 501(a) of Me In-
ternal Revenue Code of the United States. The counter -
Part attached hereto as Exhibit 'A" and Exhibit 'B',
to
n)ctwl Retirement Fund as a part thereof, wnn
nes of such other cities and towns, for Purposes
management and Investment.
Section S. REPEALER. Any Ordinance inconsistent
of Oklahoma with reference to legal
publications. That said notice, a true copy of which is attached
hereto was published in the regular edition of said newspaper
during the period and time of publication and not in a
0826/2015
''tKNeewspaper reference: 0000150402 "ta111111 •
�4
1104 W_
J&/vi t5 r-
012010780 F
Sworn to and subscribed before me this date:
I
Notary Public
My Commission expires: '
PLEASE PAY FROM INVOICE. THANK YOU
ncyA
ify Witiout Limits.
TO: The Honorable Mayor and City Council
City of Owasso
FROM: Michele Dempster
Human Resources Director
SUBJECT: OkMRF Ordinance 1057
DATE: August 11, 2015
BACKGROUND:
APpRO
V1Fp By CoUty
Avti 19 yob
Oklahoma Municipal Retirement Fund (OkMRF), the retirement plan for non - police and fire
employees, requires the City Council acting as the OkMRF Retirement Committee to approve
plan updates and amendments.
Last April the Council approved Resolution 2015 -07 approving an Amended and Restated
OkMRF Trust Indenture. In excess of the required 2/3 of participating cities approved the
changes to the Trust Indenture, allowing OkMRF to proceed with Master Plan and Joinder
Agreement changes necessary to implement daily valuations for the Defined Contribution plan.
Proposed Ordinance 1057 incorporates these changes into Owasso's Master Plan document
and Joinder Agreement.
Approval of Ordinance 1057 provides the following changes /plan enhancements to employees:
• Separation of Defined Contribution fund investments from Defined Benefits fund
investments, for daily investment and valuation versus monthly investment and
valuation, as well as more frequent liquidation of funds
• Recording of accruals and balances as units or dollars
• Allows for plan participants to request and be charged for specialized services, i.e.
loans, investment advice, brokerage fees, etc.
• Modifies language to add securities or investments permissible under applicable law
• IRS required language changes /updates to maintain the plan documents in
compliance
RECOMMENDATION:
Staff recommends approval of Ordinance 1057, amending the Oklahoma Municipal Retirement
Fund Joinder Agreement and the Oklahoma Municipal Retirement Master Defined Contribution
Plan document.
ATTACHMENTS:
Ordinance 1057
OkMRF Master Defined Contribution Plan Joinder Agreement
OkMRF Master Defined Contribution Plan
Summary of Changes