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HomeMy WebLinkAbout1996 01_Municipal Retirement Fund_1996.01.26N i APPENDIX "A" RESOLUTION NO. l0 A RESOLUTION OF THE BOARD OF TRUSTEES OF THE OKLAHOMA MUNICIPAL RETIREMENT FUND APPROVING A PROPOSED AMENDMENT TO THE TRUST INDENTURE CREATING THE OKLAHOMA MUNICIPAL RETIREMENT FUND, A PUBLIC TRUST, AND AUTHORIZING SUBMISSION OF THE AMENDMENT TO ALL PARTICIPATING EMPLOYERS FOR APPROVAL. THE AMENDMENT AUTHORIZES EACH EMPLOYER TO PROVIDE FOR PARTICIPANT LOANS WITHIN THEIR RETIREMENT SYSTEM. WHEREAS, the Board of Trustees has determined it desirable and appropriate for employers under the Oklahoma Municipal Retirement Fund to authorize participant loans from their retirement systems; and, WHEREAS, in order to authorize such loans it will be necessary to amend the Trust Indenture of the Oklahoma Municipal Retirement Fund, a public trust, to grant enabling authority for such loans. NOW, THEREFORE, BE IT RESOLVED by the Board of Trustees of the Oklahoma Municipal Retirement Fund that the proposed amendment allowing employers to authorize participant loans, as set forth in the attached Appendix "A" is hereby approved, and the Trust Administrator is hereby directed to submit this proposed amendment to the participating employers for their approval as provided in Article XVI of the Trust Indenture. This amendment becoming effective upon approval by at least two - thirds (2/3) of the employers participating on the date of adoption of this resolution. ** *END * ** The foregoing Resolution was duly adopted and approved by the Chairman and Board of Trustees of the Oklahoma Municipal Retirement Fund on the a(o'� day of � , 19�, after compliance with notice requirements of the Open Meeting Law (25 OSA, Sections 301, et seq.) CHAIRMAN ATTEST: �,U lh(.fJd SECRETARY Approved as to form and legality on TRUST ATTORNEY 0 APPENDIX "A" 9.3(1) Exemption of Assets -- Restraints on Alienation- - Exceptions. Except as otherwise provided in this Trust Indenture, the assets of the Trust shall be exempt from legal process, and distributions payable from the Trust assets 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 of involuntary, but excluding devolution by death or mental incompetency, including any such liability which is for alimony or other payments for the support of a spouse or former spouse or any otherwise relative of the Employee, prior to actually being received by the person entitled to the benefit under the terms of the System. 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 Trustee and Trust assets shall not in any manner be liable for, or subject to the debts, contracts, liabilities, engagements, or torts of any person entitled to benefits hereunder. None of the System benefits or Trust assets shall be considered an asset of the Employee in the event of his divorce, insolvency, or bankruptcy. 9.3(2) Qualified Domestic Relations Orders: (a) The provisions of 9.3(1) of this Section shall not prohibit a Qualified Domestic Relations Order as provided pursuant to this subsection. (b) The term "Qualified Domestic Relations Order" means an order issued by the District Court of this State 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 member 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 member of the System. (c) To qualify as an alternate payee, a spouse or former spouse must have been married to the related member 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 related member only if it meets the requirements of this subsection. (e) A qualified domestic order shall clearly specify: 1) The name, social security number, and last -known mailing address (if any) of the member, and the name, social security number, and mailing address of the alternative payee covered by the order; 2) The amount or percentage of the member's benefits to be paid by the System 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 order meets the requirements of this subsection only if such order: (1) Does not require the System to provide any type or form of benefit, or any option not otherwise provided under the System; (2) Does not require the System 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 System as a valid order prior to the effective date of this amendment. (g) A Qualified Domestic Relation Order shall not require payment of benefits to an alternate payee prior to the actual retirement date of the related member. (h) The obligation of the System to pay an alternate payee pursuant to a qualified domestic order shall cease upon the death of the related member. (i) In the event a Qualified Domestic Relations Order requires the benefits payable to an alternate payee to terminate upon the remarriage of said alternate payee, the System 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 order declaring the remarriage of said alternate payee. (j) This subsection shall not be subject to the provision 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. (k) The Board of Trustees of the Oklahoma Municipal Retirement Fund shall promulgate such rules as are necessary to implement the provisions of this subsection. (1) An alternate payee who has acquired beneficiary rights pursuant to a valid qualified domestic order must fully comply with all provisions of the rules promulgated by the.Trustees pursuant to this subsection in order to continue receiving his or her benefits. (m) Nothing in this section shall grant a spouse or former spouse of a member any property rights in the benefits of any member of this System except as specifically authorized for Qualified Domestic Relations Orders, and no spousal consent shall be required for a member to elect or change elections pertaining to a benefit payable under this System. 9,3(3) Loans Secured by Participants Accrued Non - Forfeitable Benefits. Where specifically authorized by the employer's System, a loan may be made to a participant from the Trust, and such loan shall not be treated or construed as an assignment or alienation prohibited by this Section if such loan is secured by the participant's accrued, non - forfeitable benefit under the Plan, and satisfies the applicable requirements of the Plan and the Internal Revenue Code of 1986, as amended (including Section 72, and applicable amendments thereto).