Public Agency Retirement System / Retirement Plan 99City of La Quinta
Public Agency Retirement System
Supplementary Retirement Plan
July 20, 1999
PLAN DOCUMENT
FLL CEWARS_SRKCLIEWTS UIMaWWO MW(VUMun 3).Uc
TABLE OF CONTENTS
Article
Page
I.
Recitals
3
II.
Definitions
4
III.
Eligible Employees
9
IV.
Benefits
10
V.
Contributions
20
VI.
Investments
21
VII.
Vesting
22
VIII.
Administration
23
IX.
Miscellaneous
24
FLL CEWAR-_ CLIEW&LLQuIN~ Coa (Verson 3)O
E
ARTICLE I
RECITALS
WHEREAS, the City of La Quinta ("Employer") has adopted the California Public
Employees Retirement System ("PERS"), a tax qualified retirement plan
maintained by the State of California for the benefit of eligible employees, and
WHEREAS, the Employer has determined it is in the best interest of the
Employer to provide supplemental retirement benefits to employees who
participate in PERS and who meet the age, service and other requirements
specified herein,
NOW THEREFORE IT IS:
RESOLVED, the provisions contained herein, hereafter called the City of La
Quinta Public Agency Retirement System Supplementary Retirement Plan
("Supplement')" are adopted along with the provisions of the Public Agency
Retirement System Trust ('Trust') to provide supplemental retirement benefits to
eligible employees of the Employer. These benefits shall be in addition to the
benefits employees would otherwise receive from PERS, further,
RESOLVED, the provisions of the Supplement and Trust shall establish multiple
trusts of that single plan.
F"NCEWRRS_SRHCUENTSLLepWnl IW Mo OM(Ve 3).tl
ARTICLE 11
DEFINITIONS
2.1 'Plan Administrator' means the individual designated by the Employer to
act on behalf of the Employer in all matters relating to the Supplement and
the Trust.
2.2 'Beneficiary' means any person or persons, other than the Employer or the
Trustee, designated by a Participant to receive any benefits which may be
due upon the Participant's death. The Beneficiary of a married Participant
shall be the Spouse of the Participant and may not be changed unless
Spousal Consent is obtained.
2.3 'Code' means the Internal Revenue Code.
2.4 'Compensation' means all compensation for the Plan Year paid in cash by
the Employer to an Eligible Employee for personal services. This definition
of "Compensation" shall be subject to the following:
(a) Compensation shall not include any amounts paid by reason of services
performed on or after the date on which an Employee ceases to be an
Employee.
(b) Compensation shall not include, with respect to any Employee, in any
Plan Year (or such other applicable period specifically designated in this
Supplement), any compensation in excess of $200,000 as adjusted, in
Plan Years beginning before January 1, 1994 and no more than
$150,000 (as adjusted) in Plan Years beginning on or after that date.
(c) For purposes of the Highly Compensated Employee and Family member
definition:
(1) Compensation shall mean total compensation as defined herein
without regard to contributions made under Sections 125, 402(e)(3),
402(h)(1)(B) and, in the case of employer contributions made
pursuant to a salary reduction agreement, 403(b) of the Code.
(2) Compensation paid to a Participant for any Plan Year shall include all
Compensation for that Plan Year paid to any Family Member
(hereafter defined) who is a Participant in this Supplement during
such Plan Year.
F:UNCEWMSSRRCLIENTSLLaWi Vl. Oo .l(Vents 3)E 4
(3) For purposes of applying the annual compensation limit under
Section 401(a)(17) of the Code, the family unit of an Employee,
who is either a 5% owner or is both a highly compensated
employee and one of the ten most highly compensated employees,
will be treated as a single employee with one compensation, and
except for the purpose of determining Compensation below the
plan's integration level, if applicable, the annual compensation limit
will be allocated among the members of the family unit. The
allocation will be made by allocating a portion of the total amount to
be allocated to the Employee which is the same ratio to the total
amount to be allocated as the ratio that the Compensation of the
Employee bears to the total Compensation of all the Employees
who are aggregated for purposes of this section. For this purpose,
a family unit is the Employee who is a 5% owner or one of the ten
most highly compensated Employees, the Employee's Spouse, and
the Employee's lineal descendants who have not attained age 19
before the close of the year.
'Highly Compensated Employee' means any Employee who performed
service for the Employer during the Determination Year who is described in
one or more of the following groups:
(A) a 5% owner, as defined in Section 416(I)(A)(iii) of the Code at any
time during the Determination Year or in the Look Back Year, or
(B) receives compensation in excess of $75,000, (indexed in accordance
with Section 415(d) of the Code) during the Look Back Year, or
(C)received compensation from an Employer in excess of $50,000
(indexed in accordance with Section 415(d) of the Code) during the
Look Back Year and is a member of the top paid group for the Look
Back Year,
(D)is an officer, within the meaning of Section 416(i) of the Code during
the Look Back Year and who receives compensation in the Look Back
Year greater than 50% of the dollar limitation in effect under Section
415(b)(1)(A) for the calendar year in which the Look Back Year
begins, or
(E) is both described in paragraph (B), (C), or (D) above when these
paragraphs are modified to substitute the Determination Year for the
Look Back Year and one of the 100 employees who receives the
most compensation from the Employer during the Determination Year.
The Determination Year is the Plan Year for which determination of who is
highly compensated is being made.
FIWIC WARS_SRMLIENTS WWMWIW �v (Ven 3). o CJ
'Look Back Year' is the 12 month period immediately preceding the
determination Year.
The top paid group consists of the top 20% of Employees ranked on the
basis of compensation received during the year. For purposes of
determining the number of employees in the top paid group, employees
described in Section 414(q)(8) and Q. & A. 9(b) of Section 1.414(q)-IT of
the regulations are excluded.
The number of officers is limited to 50 (or, if lesser, the greater of 3
employees or 10% of employees) excluding those employees who may be
excluded in determining the top paid group.
When no officer has compensation in excess of 50% of the Section
415(b)(1)(A) limit, the highest paid officer is treated as highly
compensated.
Compensation is compensation within the meaning of Section 415(c)(3)
including elective or salary reduction contributions to a cafeteria plan,
cash or deferred arrangement or tax-sheltered annuity.
Employers aggregated under Section 414(b), (c), (m) or (o) shall be
treated as a single employer.
'Family Member' shall mean an Employee who is, on any one day of the
Plan Year, a spouse, lineal ascendant, lineal descendant, or a spouse of
an ascendant or descendant, including a legally adopted individual, of an
individual who during the Plan Year was:
(A) an active or former Employee and a five percent (5%) owner within
the meaning of Section 416(i)(1)(13)(i) of the Code and the
regulations thereunder, or
(B) one of the ten most highly paid Highly Compensated Employees.
2.5 'Effective Date' means July 20, 1999.
2.6 'Eligible Employee' means any Employee who, pursuant to the provisions of
Article III, is eligible for benefits under this supplement.
2.7 'Employee' means an employee of the Employer.
2.8 'Employer' means the City of La Quinta, a public agency that has adopted
this Supplement subject to the terms of the Trust.
F:LL NCEWRRS_SRMUENTSLLepuMeWlw Ooo eM(Vml 3)tloc
2.9 'Final Pay' means the 1998-99 annual Compensation subject to PERS
deductions.
2.10 'Hour of Service' means:
(a) Each hour for which an Employee is paid, or entitled to payment, for the
performance of duties for the Employer during the applicable Plan Year.
(1) Each hour for which an Employee is paid, or entitled to payment, by
the Employer (irrespective of whether the employment relationship
has terminated) on account of a period of time during which no
duties are performed due to vacation, holiday, illness, disability,
layoff, jury duty, military duty or a paid leave of absence during the
applicable Plan Year.
(2) For purposes of paragraph (1) above a leave of absence shall
include the absence of an Employee due to pregnancy of the
Employee, birth of a child of the Employee, placement of a child with
the Employee in connection with the adoption of such child by the
Employee or the caring for such child for a period beginning
immediately following such birth or placement. If the normal number
of Hours of Service cannot be determined for an Employee who is
on sick leave or absence as described in this paragraph (2) then
eight Hours of Service for each day while the Employee is absent
shall be used.
(b) Each hour for which back pay, irrespective of mitigation of damages, is
either awarded or agreed to by the Employer.
2.11 'Normal Form of Benefit' means an annuity paid in equal fixed monthly
payments over the life of the Participant.
2.12 'Normal Retirement Age' means age 55.
2.13 'Optional Form of Benefit' means an annuity paid in equal fixed monthly
payments over the life of the Participant and with equal fixed monthly
payments continued over the life of the designated Beneficiary if the
Beneficiary is living at the death of the Participant.
2.14 'PARS' means the Public Agency Retirement System.
2.15 'Participant' means an Eligible Employee who has retired under PERS.
2.16 'PERS' means the California Public Employees' Retirement System.
FLL CEW S SRMCLIENTSLL WMeW OacuneM(V.n 33,t 7
2.17 'Plan Year' means a period of twelve (12) consecutive months
commencing July 1 and ending June 30.
2.18 'Public Agency' means a State, a political subdivision of a State, and any
agency or instrumentality of a State or political subdivision of a State.
2.19 'Spouse' means the person to whom the Participant is married as of the
earlier of the date on which the Participant's benefits commence or the
date of the Participant's death. To the extent provided in any qualified
domestic relations order a Participant's former Spouse may be treated as
the surviving Spouse for purposes of this Supplement.
2.20 'Spousal Consent' means a written election signed by the Spouse to name
someone other than the Spouse as Beneficiary and which names the non -
Spouse Beneficiary. Such written election shall be witnessed by a Plan
representative designated by the Administrator or a notary public and shall
acknowledge the effect of such election on the rights of the Spouse.
2.21 'Supplement' means the City of La Quinta Public Agency Retirement
System Supplementary Retirement Plan as adopted by the Employer on
the Effective Date, the provisions of which are contained herein.
2.22 'Trust' means the Public Agency Retirement System Trust.
2.23 'Trustee' means the trustee of the Trust.
2.24 'Year of Service' means a period of twelve (12) consecutive months
coinciding with the Plan Year.
F.LL CE MS SR CLIENTS�MPIM Ooa O(VeMb 3). o
ARTICLE III
ELIGIBLE EMPLOYEES
3.1 An Employee shall be eligible to receive benefits under this Supplement if
he:
(a) is the City Clerk employed by the Employer as of July 20, 1999,
(b) is at least fifty (50) years of age;
(c) is eligible to retire under PERS;
(d) has completed at least five (5) or more years of full-time employment
with the Employer;
(e) has terminated employment with the Employer on or before September
15, 1999; and
(f) has applied for benefits under this Supplement.
3.2 An Employee shall not be eligible to receive benefits under this Supplement
if he is accruing credit for benefits under another defined benefit plan to
which the Employer contributes.
3.3 An Employee shall begin participation the first of the month following the
time he becomes eligible for benefits under this Article III. .
F%L CEN _SRRCLIENT�uMMPIm Cu.O(Verson 3).o 9
ARTICLE IV
BENEFITS
4.1 Subject to the provisions of Section 4.3, the monthly amount of benefit shall
be equal to
the Normal Form of Benefit which is equivalent to a lump -sum
contribution of $39,229.52 upon resignation from the Employer or
$8,785.80 paid annually for five years upon resignation from the
employer (hereafter, the "Supplemental Benefit").
4.2 Form of Payment
(a) The Supplemental Benefit shall be paid in the Normal Form of Benefit.
(b) At the option of the Participant, the Supplemental Benefit shall be paid in
an Optional Form of Benefit.
(c) At the option of the Participant, and with the agreement of the
Administrator, and upon completion of a form provided by the
Administrator, the Benefit shall be paid in any other form which is
actuarially equivalent to the Normal Form of Benefit.
(d) The Participant's election of a form of benefit shall become irrevocable
upon the Participant's retirement.
(e) The Participant's designation of a Beneficiary for a benefit paid in the
Optional Form of Benefit shall become irrevocable upon the Participant's
retirement.
4.3 The monthly benefit payable to a Participant under this Supplement at any
time will not exceed:
(a) $7,500 (the "Dollar Limitation") or
(b) 100% of the Participant's average monthly compensation as defined in
Section 1.415-2(d) of the Income Tax Regulations during the three
consecutive calendar years when the total compensation paid to him
was the highest (the "Compensation Limitation") subject to the following:
F:%P CE ARS_SRMCLIEWMLL Me 1. OocuneM N-n S). 10
(1) The maximum shall apply to the pension payable to the Participant
either as a joint and survivor pension or pursuant to an option where
the contingent annuitant is the Participant's spouse; but if the pension
is payable in a form other than the foregoing and other than the
single -life pension, the maximum shall apply to the single -life pension
which is the actuarial equivalent of such pension.
(2) If benefits begin prior to a Participant's Social Security Retirement
Age (as defined in Code Section 415(b)(8)), the Dollar Limitation
applicable to such pension shall be equal to the actuarial equivalent
of the Dollar Limitation where the Dollar Limitation is deemed to be a
pension commencing at the Participant's Social Security Retirement
Age.
(3) If a pension begins after age 65, the maximum Dollar Limitation shall
be the actuarial equivalent of the Dollar Limitation where the Dollar
Limitation is deemed to be a pension commencing at Social Security
Retirement Age. Solely for the purposes of this subsection (3) and
subsection (2) above, the interest rate assumption shall be equal to
5%.
(4) If the Participant has fewer than 10 years of plan participation, the
Dollar Limitation and the $10,000 minimum limitation shall be
multiplied by a fraction, the numerator of which is the number of years
(computed to fractional parts of a year) of participation, and the
denominator of which is 10. If the Participant has fewer than 10
Years of Service the Compensation Limitation shall be multiplied by a
fraction, the numerator being the Participant's Years of Service
(computed to fractional parts of a year) divided by a denominator of
10.
(5) For all purposes of this Plan, the maximum Dollar Limitation of $7,500
shall be automatically increased as permitted by Treasury Department
regulations to reflect cost -of -living adjustments. As a result of such an
adjustment, a pension which had been limited by the provisions of this
Section in a previous Plan Year may be increased with respect to
future payments to the lesser of the adjusted Dollar Limitation amount
or the amount of pension which would have been payable under this
plan without regard to the provisions of this Section 4.3.
Notwithstanding the foregoing, the otherwise permissible annual benefits may
be further reduced to the extent necessary, as determined by the Employer, to
prevent disqualification under Section 415 of the Internal Revenue Code
which imposes the following additional limitations on the benefits payable to
Participants who may also be participating in another tax qualified pension
plan of the Employer.
F:%t CE ARS_SMCLIENTS IMWI. Coc (Venbn 3).tl 11
If the Employer maintains, or at any time maintained, a qualified defined
contribution plan covering any Participant, the sum of the Participant's Defined
Benefit Fraction and Defined Contribution Fraction will not exceed 1.0 for any
Limitation Year (Plan Year).
For purposes of this section Compensation shall mean all of each
Participant's compensation (as that term is defined in Code 415(c)(3)).
For any Self -Employed Individual covered under the Supplement,
compensation will mean Earned Income. Compensation includes only
that compensation which is actually paid to, or included in the gross
income of, the Participant during the "applicable period". For this purpose,
except as specified to the contrary elsewhere in this document, the
applicable period will be the Plan Year unless applicable law mandates a
different period, in which case the applicable period will be such legally
required period.
The annual compensation of each Participant taken into account under
the Supplement for any year will not exceed $150,000, as adjusted by the
Treasury Secretary at the same time and in the same manner as under
Code 415(d), except that the dollar increase in effect on January 1 of any
calendar year is effective for years beginning in such calendar year. If
compensation is determined on a period of time that contains fewer than
12 calendar months, then the annual compensation limit is an amount
equal to the annual compensation limit for the calendar year in which the
compensation period begins multiplied by the ratio obtained by dividing
the number of full months in the period by 12.
In determining the compensation of a Participant for purposes of this limit,
the rules of Code 414(q)(6) will apply, except in applying these rules,
"family" will include only the Participant's spouse and any lineal
descendants of the Participant who have not attained age 19 before the
close of the year. If, as a result of the application of these rules, the
adjusted $150,000 limit is exceeded, then (except for determining the
portion of compensation up to the integration level), the limit will be
prorated among the affected individual's compensation determined under
this section before this limit is applied.
If compensation for any prior plan year is taken into account in
determining the employee's contributions or benefits for the current year,
the compensation for such year is subject to the applicable annual
compensation limit in effect for that prior year.
Defined Benefit Fraction: A fraction, the numerator of which is the sum of
the Participant's projected annual benefits under all the defined benefit
F: CEWRRS_S LIEWS%e UM~Doa (Vmn 3).E c 12
plans (whether or not terminated) maintained by the Employer, and the
denominator of which is the lesser of 125% of the dollar limit determined
for the Limitation Year under Code 415(b) and (d) or 140% of the highest
average compensation, including any adjustments under Code 415(b).
Notwithstanding the above, if the Participant was a Participant as of the
first day of the first Limitation Year beginning after December 31, 1986, in
one or more defined benefit plans maintained by the Employer that were
in existence on May 6, 1986, the denominator of this fraction will not be
less than 125% of the sum of the annual benefits under such plans that
the Participant had accrued as of the close of the last Limitation Year
beginning before January 1,1987, disregarding any changes in the terms
and conditions of the plan after May 5, 1986. The preceding sentence
applies only if the defined benefit plans individually and in the aggregate
satisfied Code 415 for all Limitation Years beginning before January 1,
1987.
Defined Contribution Dollar Limitation: $30,000 or if greater, one-fourth of
the defined benefit dollar limitation of Code 415(b)(1) as in effect for the
Limitation Year.
Defined Contribution Fraction: A fraction, the numerator of which is the
sum of the Annual Additions to the Participant's account under all the
defined contribution plans (whether or not terminated) maintained by the
Employer for the current and all prior Limitation Years (including the
Annual Additions attributable to the Participant's nondeductible employee
contributions to all defined benefit plans, whether or not terminated,
maintained by the Employer, and the Annual Additions attributable to all
welfare benefit funds, as defined in Code 419(e), and individual medical
accounts, as defined in Code 415(1)(2), maintained by the Employer), and
the denominator of which is the sum of the maximum aggregate amounts
for the current and all prior Limitation Years of service with the Employer
(regardless of whether a defined contribution plan was maintained by the
Employer). The maximum aggregate amount in any Limitation Year is the
lesser of 125% of the dollar limitation determined under Code 415(b) and
(d) in effect under Code 415(c)(1)(A) or 35% of the Participant's
compensation for such year.
If the Employee was a Participant as of the end of the first day of the first
Limitation Year beginning after December 31,1986 in one or more defined
contribution plans maintained by the Employer that were in existence on
May 6, 1986, the numerator of this fraction will be adjusted if the sum of
this fraction and the Defined Benefit Fraction would otherwise exceed 1.0
under the terms of this plan. Under the adjustment, an amount equal to
the product of (i) the excess of the sum of the fractions over 1.0 times (ii)
the denominator of this fraction, will be permanently subtracted from the
F:LL NCEWARS_SRMLIENTSLL¢CuIMN WO 00(Verabn 3)U 13
numerator of this fraction. The adjustment is calculated using the
fractions as they would be computed as of the end of the last Limitation
Year beginning before January 1, 1987, and is regarding any changes in
terms and conditions made after May 5, 1986, but using the 415 limitation
applicable to the first Limitation Year beginning on or after January 1,
1987.
Employer: For purposes of this Article, Employer will mean the employer
named herein and all members of a controlled group of corporations (as
defined in Code 414(b) as modified by 415(h), all commonly controlled
trades or businesses (as defined in 414(c) as modified by 415(h) or
affiliated service groups (as defined in 414(m) of which the Employer is a
part, and any other entity required to be aggregated with the Employer
pursuant to regulations under 414(o).
For purposes of the above limitation, all defined benefit plans of the Employer,
whether or not terminated, are to be treated as one defined benefit plan and
all defined contribution plans of the Employer, whether or not terminated, are
to be treated as one defined contribution plan.
(c) The annual benefit to which any Participant may be entitled to receive
in the form of a straight life annuity, shall not exceed the lesser of
$90,000 or 100% of the participant's highest three consecutive years
average compensation (or fewer, if the participant does not have three
consecutive years).
(d) If a retirement benefit in any form other than a straight life annuity is
offered, or if the Participant contributes or makes rollover contributions,
then this benefit must be adjusted to a straight life annuity, beginning at
the same age, which is the actuarial equivalent of such benefit. In
order to determine actuarial equivalence of different forms of benefit
payments, the interest rate assumption may not be less than the
greater of 5 percent of the rate specified in the plan for determining
actuarial equivalent for the particular form of retirement benefit.
(e) If a retirement benefit is provided at or after age 62 but prior to the
Participant's Social Security retirement age ("SSRA") then the benefit
may not exceed an annual benefit of $90,000 reduced by (i) in the case
of a participant whose SSRA is 65 , 5/9 of 1 % for each month by which
benefits commence before the month in which the participant attains
age 65, or (ii) in the case of a Participant whose SSRA is greater than
65, 5/9 of 1 % for each of the first 36 months and 5/12 of 1 % for each
additional month (up to 24) by which benefits commence before the
month in which the Participant attains SSRA. If the benefit began
before age 62, the benefit must be limited to the actuarial equivalence
of the Participant's limitation for benefits commencing at age 62, with
the reduced dollar limitation for such benefits further reduced for each
month by which benefits commence before the month in which the
Participant attains age 62. In order to determine actuarial equivalence
for this purpose, the interest rate assumption used may not be less than
the greater of 5% or the rate specified herein for determining actuarial
equivalence for early retirement. SSRA is age 65 if the Participant was
born before 1/1/38, age 66 if born before 1/1/55, and age 67 if born
after 12/31/54.
(f) If benefits commence after Social Security retirement age ("SSRA"), the
maximum dollar limitation on such benefit may be increased to an
amount that is actuarially equivalent to the maximum dollar limitation on
a benefit commencing at SSRA. The increased maximum benefit,
however, must not exceed 100 percent of the Participant's high 3 year
average compensation. The interest rate assumption used to
determine actuarial equivalence for this purpose must be the lesser of
5% of the rate specified for determining actuarial equivalence herein for
retirement after SSRA, and mortality may not be taken into account if
there is no forfeiture upon death.
(g) The limitations on benefits of Section 415(b) of the Code shall not apply
where the total annual benefits payable to a Participant under this
defined benefit plan and all other defined benefit plans of the Employer
do not exceed $10,000 in the aggregate. Where a plan provides the
$10,000 minimum limitation, the plan must provide that the minimum
limitation is not applicable for a Participant whose employer maintains
or has maintained a defined contribution plan in which such Employee
participated. For purposes of the $10,000 minimum limitations the
limitations shall be divided by a fraction which shall be: years of service
with the employer as of and including the current limitation year divided
by 10 and for purposes of the maximum dollar limitation the amount
shall be multiplied by a fraction which shall be: years of participation
with the employer as of, and including the current limitation year divided
by 10.
4.4 Actuarial Equivalence
(a) For the purpose of establishing actuarial equivalence between the
Normal and Optional Form of benefit, the monthly amount of benefit
payable under an Optional Form of Benefit shall be a fixed percentage
of the monthly amount of benefit payable under the Normal Form of
Benefit, as determined by the following table:
F:LLANCEWr1RS__SP%0.1EIRSYIeOUYMaNIen UoameM (Vdsion 3).doc 15
Age of
Participant
Participant naming a Beneficiary under Optional Form of Benefit
(percentage payable)
Age of Beneficiary
35
40
45
50
55
83.76%
84.87%
86.24%
87.85%
56
82.71 %
83.83%
85.23%
86.90%
57
81.60%
82.74%
84.17%
85.89%
58
80.45%
81.60%
83.05%
84.82%
59
79.23%
80.39%
81.87%
83.68%
60
77.96%
79.13%
80.63%
82.48%
61
76.63%
77.80%
79.31%
81.19%
62
75.22%
76.40%
77.92%
79.83%
63
73.76%
74.93%
76.46%
78.40%
64
72.20%
73.40%
74.93%
76.89%
65
70.63%
71.80%
73.33%
75.30%
66
68.98%
70.13%
71.66%
73.63%
67
67.27%
68.41%
69.93%
71.90%
68
65.50%
66.63%
68.14%
70.11%
69
63.69%
64.80%
66.29%
68.25%
70
61.84%
62.93%
64.40%
66.35%
55
60
65
70
89.66%
91.58%
93.48%
95.22%
88.80%
90.83%
92.86%
94.75%
87.87%
90.01 %
92.18%
94.23%
86.87%
89.13%
91.44%
93.65%
85.90%
88.17%
90.64%
93.02%
84.67%
87.14%
89.76%
92.31%
83.45%
86.03%
88.30%
91.53%
82.15%
84.83%
87.74%
90.67%
80.77%
83.54%
86.60%
89.72%
79.30%
82.16%
85.36%
88.68%
77.75%
80.69%
84.02%
87.54%
76.12%
79.13%
82.59%
86.30%
74.41%
77.48%
81.06%
84.95%
72.62%
75.75%
79.43%
83.51%
70.77%
73.94%
77.72%
81.97%
68.86%
72.06%
75.92%
80.33%
Percentages
shall be
determined by
month of age
using straight-line
interpolation
between the
figures provided
therein.
(b) For the purposes of establishing actuarial equivalence between the
Normal Form of Benefit and other forms of benefit, as determined
under 4.2(c), the mortality assumption shall be 1983 GAM with 6.00%
interest per annum and 6.00% load, and the interest assumption shall
be 6.00% per annum. The present value of benefits shall be equal
based on these assumptions.
4.5 An employee who is a Participant will have his entire interest distributed in
accordance with Section 401(a)(9) of the Code. A Participant's entire
interest will be:
(a) Distributed commencing not later than the required beginning date (in
accordance with Internal Revenue Service regulations) and must be
made over one of the following periods (or a combination thereof):
(1) the life of the Participant,
(2) the lives of the Participant and a designated Beneficiary,
FLLAN AR$_SRMLIENT$LLepuMeWln Oowert(Ven 3)Uoc
M
(3) a period not extending beyond the life expectancy of the Participant,
or
(4) a period not extending beyond the life expectancy of the Participant
and a designated Beneficiary.
(b) The required beginning date for purposes of this Section shall be the
April 1st of the calendar year following the later of:
(1) the calendar year in which the Participant attains age 701/2, or
(2) the calendar year in which the Participant retires.
(c) For purposes of this Article, life expectancy of the Participant and life
expectancy of the Participant and designated Beneficiary will be
computed using the return multiples contained in Section 1.72-9 of the
Income Tax Regulations. A Participant's life expectancy (and his
Spouse's life expectancy) may not be recalculated.
(d) Distribution of a Participant's interest will be made in accordance with
Section 401(a)(9) of the Code and the provisions of such Code section
will supersede any provision which may be inconsistent with such Code
section.
(e) If distribution is considered to have commenced in accordance with the
Regulations before the Participant's death, the remaining interest will be
distributed as least as rapidly as under the method of distribution being
used as of the date of the Participant's death. If the Participant dies
before the time when distribution is considered to have commenced in
accordance with the Regulations, the method of distribution shall satisfy
the following requirements: (a) any remaining portion of the Participant's
interest that is not payable to a beneficiary designated by the Participant
will be distributed within five years after the Participant's death; and (b)
any portion of the Participant's interest that is payable to a beneficiary
designated by the Participant will be distributed either (i) within five
years after the Participant's death, or (ii) over the life of the beneficiary
or over a period certain not to extend beyond the life expectancy of the
beneficiary, commencing not later than the end of the calendar year
following the calendar year in which the Participant died (or, if the
designated beneficiary is the Participant's surviving spouse,
commencing not later than the end of the calendar year following the
calendar year in which the Participant would have attained age 701/2).
4.6 Distributions made to a Participant's designated Beneficiary under this Plan
shall be incidental to the primary purpose of providing benefits to
F.LL CEWMS_SWCLIEWSUQWM WM OC .M(V.Wn 3).d 17
Participants and such distributions will be made in accordance with Section
401(a)(9) of the Code.
4.7 In no event shall the annuity commencement date of a Participant who
becomes entitled to benefits under this Supplement be later than the 60th
day after the close of the Plan Year in which the latest of the following
events occurs:
(a) The Participant reaches his normal retirement date;
(b) The Participant qualifies for permanent and total disability;
(c) The Participant terminates employment with the Employer.
Notwithstanding the above, a Participant may make written application to
the Administrator for a deferred annuity commencement date which may be
the first day of any month subsequent to the latest date specified in (a), (b)
or (c) above but in no event will such date be later than the required
beginning date specified in this Article.
4.8 Direct Rollovers
(a) This section applies to all distributions made on or after January 1,
1993. Notwithstanding any provision of the plan to the contrary that
would otherwise limit a distributee's election under this plan, a
distributee may elect, at the time and in the manner prescribed by the
Plan Administrator, to have any portion of an eligible rollover
distribution paid directly to an eligible retirement plan specified by the
distributee in a direct rollover.
(b) Definitions
(i.) 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 ten years or more; any
distribution to the extent such distribution is required under Section
401(a)(9) of the Internal Revenue Code; and the portion of any
distribution that is not includible in gross income (determined
without regard to the exclusion for net unrealized appreciation with
respect to employer securities).
F:V CE~S_SRMCLIENTSLL UMo -W(Vents3).E 18
(ii.) Eligible retirement plan: An eligible retirement plan is an individual
retirement account described in Section 408(a) of the Code, an
individual retirement annuity described in Section 408(b) of the
Code, an annuity plan described in Section 403(a) of the Code, or
a qualified trust described in Section 401(a) of the Code that
accepts the distributee's eligible rollover distribution. However, in
the case of an eligible rollover distribution to the surviving spouse,
an eligible retirement plan is an individual retirement account or an
individual retirement annuity.
(iii.) Distributee: A distributee includes an Employee or former
Employee. In addition, the Employee's or the former Employee's
surviving spouse and the Employee's or former Employee's spouse
or former spouse who is the alternate payee under a qualified
domestic relations order, 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 to the
eligible retirement plan specified by the distributee.
4.9 All defined contribution plans (including voluntary employee contribution
accounts in a defined benefit plan) and key employee accounts under a
welfare benefit plan described in Section 419 of the Internal Revenue Code,
as well as employer contributions allocated to an IRA of Employee, whether
or not terminated, will be treated as one defined contribution plan for
purposes of the limitations under Section 415(c) of the Code.
If the Employer is a member of a controlled group of corporations or
commonly controlled trades or businesses, or a member of an affiliated
service group, within the meaning of Sections 414(b), (c), or (m) and 415(g)
and (h) of the Code, all such employers shall be treated as a single
employer for purposes of the Plan's application of the Code Section 415
limitations.
F LLANCE SSR CUEMSLLe(]uIMa~ CocumeM (V..bn 3),E 19
ARTICLE V
CONTRIBUTIONS
5.1 Forfeitures arising under the Supplement shall be applied to reduce
Employer contributions.
5.2 All assets shall be held and used for the exclusive benefit of Eligible
Employees and their Beneficiaries.
F.llANCEWMS SMCLIENTSLL QO WW OociureM(V.W 3�. o 20
ARTICLE VI
INVESTMENTS
6.1 Investment of Trust assets shall be governed by the following provisions as
indicated by the initials of the Plan Administrator:
(a) Yes No Pursuant to Section 4.1(a)(2) of the Trust, the
Administrator hereby appoints the Trustee as the fiduciary with respect to
the authority and duty to direct the investment and management of all Trust
assets.
(b) Yes_ Now Pursuant to Section 4.1(a)(2) of the Trust, and subject to
the acceptance of the Trustee, the Administrator hereby appoints
as the fiduciary with respect to the authority and duty to direct the
investment and management of all Trust assets. The following statement of
investment policy shall govern the investment of the Trust assets, subject to
the acceptance of such assets by the Trustee:
(c) Yes_ No/75'�� Pursuant to Section 4.1(a)(2) of the Trust, the
Administrator shall remain the fiduciary with respect to the authority and duty
to direct the investment and management of all Trust assets. The following
statement of investment policy shall govern the investment of the Trust
assets, subject to the acceptance of such assets by the Trustee:
F%P CBPRRS_$ LIEaR5 UlMaWwDocu (Vmbn3). o 21
ARTICLE VII
VESTING
7.1 Each Participant shall have a nonforfeitable right to his benefit under this
Supplement upon meeting the requirements of Article III.
7.2 If the Plan's vesting schedule is amended or the Plan is amended in any
way that directly or indirectly affects the computation of a Participant's
nonforfeitable percentage, or if the Plan is deemed amended by an
automatic change to or from a top heavy vesting schedule, each Participant
with at least three years of service with the Employer may elect within a
reasonable period after the adoption of the amendment or change to have
his nonforfeitable percentage computed under the Plan without regard to
such amendment or change Election Period. The period during which the
election may be made will begin with the date the amendment is adopted or
deemed to be made and will end on the latest of:
i.) 60 days after the amendment is adopted;
ii.) 60 days after the amendment becomes effective; or
iii.) 60 days after the Participant is issued written notice of the
amendment by the Employer or Plan Administrator.
7.3 A top heavy vesting schedule shall mean: A vesting schedule under which
an employee who has completed 3 years of service with the Employer has
a nonforfeitable right to 100% of his accrued benefit.
s:�nns_Srs LIeursu.ow aTleo �(VeMW 3).m 22
ARTICLE Vill
ADMINISTRATION
8.1 The Employer shall designate an individual to serve as the Plan
Administrator. The Plan Administrator shall act on behalf of the Employer in
all matters relating to the Supplement and Trust, and any subsequent
Supplements permitted by this Plan.
8.2 The Plan Administrator shall keep accurate books and records with respect
to Participants, their service with the Employer and their compensation and
shall certify the same to the Trustee.
8.3 The Plan Administrator, in interpreting any provision of this Supplement or
in making any judgment or determination with respect to any person
hereunder, shall apply uniform rules in a like manner to all persons under
similar conditions.
8.4 In any case where the provisions of this Supplement require the consent or
approval of the Plan Administrator of an election or request made by an
Employee, Participant or Beneficiary, the Plan Administrator shall act on
such election or request as promptly as shall be reasonable in the
circumstances.
8.5 The Trustee shall advise the Plan Administrator of any changes in
applicable law, regulations or proposed regulations which require the
Employer to amend the Supplement or otherwise take action to maintain
the qualified status of the Supplement.
c LLAN ARS_SR CLIEN1�WMaTlm oocu (VOMW 3).E 23
ARTICLE IX
MISCELLANEOUS
9.1 Attachment and Assignment of Benefits
(a) To the maximum extent permitted by law, the benefits or payments
herein provided shall not in any way be liable to attachment,
garnishment or other process, or be seized, taken, appropriated or
applied by any legal or equitable process, to pay any debt or liability of
any Participant. Except as otherwise permitted by law or by an order,
decree or judgment issued pursuant to a Qualified Domestic Relations
Order, benefits or payments under this Supplement may not be
assigned. In the event of any conflict between provisions of this
Supplement and the terms of any description issued in conjunction with
the Supplement, the provisions of this Supplement shall control.
(b) For purposes of this Supplement a "Qualified Domestic Relations Order"
means a domestic relations order (as specified below) which creates or
recognizes the existence of an alternate payee's (any spouse, former
spouse, child or other dependent of a Participant) right to, or assigns to
an alternate payee the right to, receive all or a portion of the benefits
payable to a Participant. A domestic relations order means any
judgment, decree or order (including approval of a property settlement
agreement) which relates to the provision of child support, alimony
payments, or marital property rights to a spouse, former spouse, child or
other dependent of a Participant and is made pursuant to a state
domestic relations order. Such order (a) must clearly specify (1) the
name and last known mailing address (if any) of the Participant and the
alternate payee covered by the order, (2) the amount or percentage of
the Participant's benefit to be paid by the Supplement to each alternate
payee, or the manner in which such amount or percentage is to be
determined, (3) the number of payments or period to which such order
applies, and (4) the name of each plan to which such order applies, and
(b) must not require (1) the Supplement to provide any type or form of
benefits, or any option, not otherwise provided under the Supplement, or
(2) provide increased benefits, and (3) the payment of benefits to an
alternate payee which are required to be paid to another alternate payee
under another previously Qualified Domestic Relations Order. The
provisions relating to the establishment of a Qualified Domestic
Relations Order and the payment of any benefits to an alternate payee
shall be applied in the method and manner which is consistent with
Section 414(p) of the Code.
F:LL CEWARS-3RCLIEW&S uiMAWW Dmi (Vme 3)-o
24
9.2 As used herein, the masculine shall include feminine and the singular shall
include the plural, where applicable.
9.3 The Employer shall have the right to amend this Supplement. No
amendment, however, shall reduce a Participant's accrued benefit. Such
amendments shall not be effective until received and acknowledged by the
Trust and the Trust Administrator.
Executed this .3elday of 19�%, at , California.
Signature of Plan Administrator
7-Aou44zs p 6eAo oese
Name of Plan Administrator
C � �y ✓f�a na
Title of Administrator
Name of Employer
1rc0EMiEliNT&TRUST OFFICER
r
F:LLANCE~S SP%CLIENFS\Lapulnla\Plan DotumxM (Vwabn 3�.Eoc
25
AMENDMENT TO THE
LA QUINTA
PARS SUPPLEMENTARY RETIREMENT PLAN
The City of La Quinta PARS Supplementary Retirement Plan as amended and restated as
of July 20, 1999 is hereby amended as follows:
1. Effective January 1, 2002 (except as otherwise provided), the following
Appendix B is added to read as follows:
"APPENDIX B
GOOD FAITH EGTRRA COMPLIANCE
B.1. Adoption and Effective Date of Appendix B.
This Appendix B is adopted to reflect certain provisions of the Economic Growth and Tax Relief
Reconciliation Act of 2001 ("EGTRRA"). This Appendix B is intended as good faith
compliance with the requirements of EGTRRA and is to be construed in accordance with
EGTRRA and guidance issued thereunder. Except as otherwise provided, this Appendix B shall
be effective as of the first day of the first Plan Year beginning after December 31, 2001. This
Appendix B shall supersede the provisions of the Plan and Appendix A to the extent those
provisions are inconsistent with the provisions of this Appendix B.
B.2. New Mortality Table.
Notwithstanding any other Plan provisions to the contrary, the applicable mortality table used for
purposes of adjusting any benefit or limitation under Section 415(b)(2)(B), (C), or (D) of the
Code is the table prescribed in Rev. Rul. 2001-62. Such table shall not be used for any other
purpose under the Plan. This Section B.2 shall apply to distributions with annuity starting dates
on or after December 31, 2002.
B.3. Increase in Compensation Limit.
The annual compensation of each Member taken into account in determining benefit accruals in
any Plan Year beginning after December 31, 2001 shall not exceed $200,000. 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 $200,000 limit on annual compensation described in this Section B.3 shall be
adjusted for cost -of -living increases in accordance with Section 401(a)(17)(B) of the Code. 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.
NB 1 :574818.5
For purposes of determining benefit accruals in a Plan Year beginning after December 31, 2001,
the annual compensation limit described in this Section B.3 for determination periods beginning
before January 1, 2002 shall be $150,000 for any determination period beginning in 1996 or
earlier; $160,000 for any determination period beginning in 1997, 1998, or 1999; and $170,000
for any determination period beginning in 2000 or 2001.
Notwithstanding the foregoing, this Section B.3 shall not apply to any Member eligible for a
higher limit on annual compensation under the transition rule described in Section 1.401(a)(17)-
1(d)(4)(ii) of the Treasury Regulations.
B.4. Modification of Definition of Eligible Retirement Plan.
For purposes of the direct rollover provisions in the Plan, an eligible retirement plan shall also
mean 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. 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. This Section BA shall apply to distributions made after
December 31, 2001.
B.5. Increase in Benefits Limit.
(a) This Section B.5 shall be effective for Limitation Years ending after December 31, 2001.
Notwithstanding the foregoing, this Section B.5 shall not apply to any Member eligible for
higher limit on benefits under the special rule described in Section 415(b)(10) of the Code.
(b) Benefit increases resulting from the increase in the limitations of Section 415(b) of the
Code shall be provided to all Employees participating in the Plan who have one hour of service
on or after the first day of the first Limitation Year ending after December 31, 2001.
(c) The Annual Benefit payable with respect to a Member under the Plan for any Limitation
Year shall not exceed the maximum permissible benefit.
(d) Definitions.
(i) Defined benefit dollar limitation. The "defined benefit dollar limitation" is
$160,000, as adjusted, effective January 1 of each year, under Section 415(d) of the Code in such
manner as the Secretary shall prescribe, and payable in the form of a straight life annuity. A
limitation as adjusted under Section 415(d) will apply to Limitation Years ending with or within
the calendar year for which the adjustment applies.
(ii) Maximum permissible benefit. The "maximum permissible benefit" is the
defined benefit dollar limitation (adjusted where required, as provided in (A) and, if applicable,
in (B) or (C) below).
NB 1:574818.5 2
(A) If the Member has fewer than ten Years of Participation in the Plan, the defined
benefit dollar limitation shall be multiplied by a fraction, (i) the numerator of which is the
number of full and partial Years of Participation in the Plan and (ii) the denominator of which is
ten.
(B) If the Annual Benefit of a Member begins prior to age 62, the defined benefit
dollar limitation applicable to the Member at such earlier age is an Annual Benefit payable in the
form of a straight life annuity beginning at the earlier age that is the actuarial equivalent of the
defined benefit dollar limitation applicable to the Member at age 62 (adjusted under (A) above, if
required). The defined benefit dollar limitation applicable at an age prior to age 62 is determined
as the lesser of (i) the actuarial equivalent (at such age) of the defined benefit dollar limitation
computed using the interest rate and mortality table (or other tabular factor) specified in the plan
for early retirement calculations and (ii) the actuarial equivalent (at such age) of the defined
benefit dollar limitation computed using a five percent interest rate and the applicable mortality
table. Any decrease in the defined benefit dollar limitation determined in accordance with this
paragraph (B) shall not reflect a mortality decrement if benefits are not forfeited upon the death
of the Member. If any benefits are forfeited upon death, the full mortality decrement is taken
into account.
(C) If the benefit of a Member begins after the Member attains age 65, the defined
benefit dollar limitation applicable to the Member at the later age is the Annual Benefit payable
in the form of a straight life annuity beginning at the later age that is actuarially equivalent to the
defined benefit dollar limitation applicable to the Member at age 65 (adjusted under (A) above, if
required). The actuarial equivalent of the defined benefit dollar limitation applicable at an age
after age 65 is determined as (i) the lesser of the actuarial equivalent (at such age) of the defined
benefit dollar limitation computed using the interest rate and mortality table (or other tabular
factor) specified in the Plan for late retirement benefits, and (ii) the actuarial equivalent (at such
age) of the defined benefit dollar limitation computed using a five percent interest rate
assumption and the applicable mortality table. For these purposes, mortality between age 65 and
the age at which benefits commence shall be ignored."
NB 1:574818.5 3
2. Effective January 1, 2003, the following Appendix C is added to read as follows:
"APPENDIX C
MINIMUM DISTRIBUTION REQUIREMENTS
C.I. Adoption and Effective Date of Appendix C.
This Appendix C is adopted to reflect the final Treasury Regulations promulgated under
Section 401(a)(9) of the Code. Except as otherwise provided, this Appendix C shall apply for
purposes of determining required minimum distributions for calendar years beginning with the
2003 calendar year. This Appendix C shall supersede the provisions of the Plan and Appendix A
to the extent those provisions are inconsistent with the provisions of this Appendix C.
All distributions required under this Appendix C will be determined and made in accordance
with the Treasury Regulations promulgated under Section 401(a)(9) of the Code.
Notwithstanding the other provisions of this Appendix C, 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.
C.2. Time and Manner of Distribution.
(a) Required Beginning Date. The Member's entire interest will be distributed, or begin to
be distributed, to the Member no later than the Member's Required Beginning Date.
(b) Death of Member Before Distributions Begin. If the Member dies before distributions
begin, the Member's entire interest will be distributed, or begin to be distributed, no later than as
follows:
(i) If the Member's surviving spouse is the Member'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 Member died, or by December 31 of the
calendar year in which the Member would have attained age 70V2, if later.
(ii) If the Member's surviving spouse is not the Member'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 Member died.
(iii) If there is no Designated Beneficiary as of September 30 of the year following the
year of the Member's death, the Member's entire interest will be distributed by December 31 of
the calendar year containing the fifth anniversary of the Member's death.
(iv) If the Member's surviving spouse is the Member's sole Designated Beneficiary
and the surviving spouse dies after the Member but before distributions to the surviving spouse
begin, this Section C.2(b), other than Section C.2(b)(i), will apply as if the surviving spouse were
the Member.
NB 1:574818.5 4
For purposes of this Section C.2(b) and Section C.5, distributions are considered to begin on the
Member's Required Beginning Date (or, if Section C.2(b)(iv) applies, the date distributions are
required to begin to the surviving spouse under Section C.2(b)(i)). If annuity payments
irrevocably commence to the Member before the Member's Required Beginning Date (or to the
Member's surviving spouse before the date distributions are required to begin to the surviving
spouse under Section C.2(b)(i)), the date distributions are considered to begin is the date
distributions actually commence.
(c) Form of Distribution. Unless the Member'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 Sections C.3, CA and C.5 of this Appendix C. If the Member'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. Any part of the Member's interest which is in the form of an
individual account described in Section 414(k) of the Code will be distributed in a manner
satisfying the requirements of Section 401(a)(9) of the Code and the Treasury Regulations that
apply to individual accounts.
C.3. Determination of Amount to be Distributed Each Year.
(a) General Annuity Requirements. If the Member's interest is paid in the form of annuity
distributions under the Plan, payments under the annuity will satisfy the following requirements:
(1) the annuity distributions will be paid in periodic payments made at intervals not
longer than one year;
(ii) the distribution period will be over a life (or lives) or over a period certain not
longer than the period described in Section CA or C.5;
(iii) once payments have begun over a period certain, the period certain will not be
changed even if the period certain is shorter than the maximum permitted;
(iv) payments will either be nonincreasing or increase only as follows:
(A) by an annual percentage increase that does not exceed the annual percentage
increase in a cost -of -living index that is based on prices of all items and issued by the Bureau of
Labor Statistics;
(B) to the extent of the reduction in the amount of the Member's payments to provide
for a survivor benefit upon death, but only if the beneficiary whose life was being used to
determine the distribution period described in Section CA dies or is no longer the Member's
Beneficiary pursuant to a qualified domestic relations order within the meaning of Section
414(p) ;
(C) to provide cash refunds of employee contributions upon the Member's death; or
(D) to pay increased benefits that result from a plan amendment.
NB 1:574818.5 5
(b) Amount Required to be Distributed by Required Beginning Date. The amount that
must be distributed on or before the Member's Required Beginning Date (or, if the Member dies
before distributions begin, the date distributions are required to begin under Section C.2(b)(i) or
C.2(b)(ii)) is the payment that is required for one payment interval. The second payment need
not be made until the end of the next payment interval even if that payment interval ends in the
next calendar year. Payment intervals are the periods for which payments are received, e.g., bi-
monthly, monthly, semi-annually, or annually. All of the Member's benefit accruals as of the
last day of the first Distribution Calendar Year will be included in the calculation of the amount
of the annuity payments for payment intervals ending on or after the Member's Required
Beginning Date.
(c) Additional Accruals After First Distribution Calendar Year. Any additional benefits
accruing to the Member in a calendar year after the first Distribution Calendar Year will be
distributed beginning with the first payment interval ending in the calendar year immediately
following the calendar year in which such amount accrues.
(d) Election to Allow Members or Beneficiaries to Elect 5-Year Rule. Members or
Beneficiaries may elect on an individual basis whether the 5-year rule or the life expectancy rule
in Sections C.2(b) and C.5 of this Appendix C applies to distributions after the death of a
Member who has a Designated Beneficiary. The election must be made no later than the earlier
of September 30 of the calendar year in which distribution would be required to begin under
Section C.2(b) of this Appendix C, or by September 30 of the calendar year which contains the
fifth anniversary of the Member's (or, if applicable, surviving spouse's) death. If neither the
Member nor Beneficiary makes an election under this paragraph, distributions will be made in
accordance with Sections C.2(b) or C.5 of this Appendix C.
CA. Requirements For Annuity Distributions That Commence During Member's
Lifetime.
(a) Joint Life Annuities Where the Beneficiary Is Not the Member's Spouse. If the
Member's interest is being distributed in the form of a joint and survivor annuity for the joint
lives of the Member and a nonspouse Beneficiary, annuity payments to be made on or after the
Member's Required Beginning Date to the Designated Beneficiary after the Member's death
must not at any time exceed the applicable percentage of the annuity payment for such period
that would have been payable to the Member using the table set forth in Q&A-2 of Section
1.401(a)(9)-6T of the Treasury Regulations. If the form of distribution combines a joint and
survivor annuity for the joint lives of the Member and a nonspouse Beneficiary and a period
certain annuity, the requirement in the preceding sentence will apply to annuity payments to be
made to the Designated Beneficiary after the expiration of the period certain.
(b) Period Certain Annuities. Unless the Member's spouse is the sole Designated
Beneficiary and the form of distribution is a period certain and no life annuity, the period certain
for an annuity distribution commencing during the Member's lifetime may not exceed the
applicable distribution period for the Member under the Uniform Lifetime Table set forth in
Section 1.401(a)(9)-9 of the Treasury Regulations for the calendar year that contains the annuity
starting date. If the annuity starting date precedes the year in which the Member reaches age 70,
the applicable distribution period for the Member is the distribution period for age 70 under the
NB 1:574818.5 6
Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of the Treasury Regulations plus the
excess of 70 over the age of the Member as of the Member's birthday in the year that contains
the annuity starting date. If the Member's spouse is the Member's sole Designated Beneficiary
and the form of distribution is a period certain and no life annuity, the period certain may not
exceed the longer of the Member's applicable distribution period, as determined under this
Section CA(b), or the joint life and last survivor expectancy of the Member and the Member's
spouse as determined under the Joint and Last Survivor Table set forth in Section 1.401(a)(9)-9
of the Treasury Regulations, using the Member's and spouse's attained ages as of the Member's
and spouse's birthdays in the calendar year that contains the annuity starting date.
(c) Election to Allow Designated Beneficiary Receiving Distributions Under 5-Year
Rule to Elect Life Expectancy Distributions. A Designated Beneficiary who is receiving
payments under the 5-year rule may make a new election to receive payments under the life
expectancy rule until December 31, 2003, provided that all amounts that would have been
required to be distributed under the life expectancy rule for all Distribution Calendar Years
before 2004 are distributed by the earlier of December 31, 2003 or the end of the 5-year period.
C.5. Requirements For Minimum Distributions Where Member Dies Before Date
Distributions Begin.
(a) Member Survived by Designated Beneficiary. Except as otherwise provided, if the
Member dies before the date distribution of his or her interest begins and there is a Designated
Beneficiary, the Member's entire interest will be distributed, beginning no later than the time
described in Section C.2(b)(i) or C.2(b)(ii), over the life of the Designated Beneficiary or over a
period certain not exceeding:
(i) unless the annuity starting date is before the first Distribution Calendar Year, the
life expectancy of the Designated Beneficiary determined using the Beneficiary's age as of the
Beneficiary's birthday in the calendar year immediately following the calendar year of the
Member's death; or
(ii) if the annuity starting date is before the first Distribution Calendar Year, the life
expectancy of the Designated Beneficiary determined using the Beneficiary's age as of the
Beneficiary's birthday in the calendar year that contains the annuity starting date.
(b) No Designated Beneficiary. If the Member dies before the date distributions begin and
there is no Designated Beneficiary as of September 30 of the year following the year of the
Member's death, distribution of the Member's entire interest will be completed by December 31
of the calendar year containing the fifth anniversary of the Member's death.
(c) Death of Surviving Spouse Before Distributions to Surviving Spouse Begin. If the
Member dies before the date distribution of his or her interest begins, the Member's surviving
spouse is the Member's sole Designated Beneficiary, and the surviving spouse dies before
distributions to the surviving spouse begin, this Section C.5 will apply as if the surviving spouse
were the Member, except that the time by which distributions must begin will be determined
without regard to Section C.2(b)(i) .
NB 1:574818.5 7
C.6. Definitions.
(a) Designated Beneficiary. The individual who is designated as the Beneficiary consistent
with the terms of the Plan and is the Designated Beneficiary under Section 401(a)(9) of the Code
and Section 1.401(a)(9)-1, Q&A-4, of the Treasury Regulations.
(b) Distribution Calendar Year. A calendar year for which a minimum distribution is
required. For distributions beginning before the Member's death, the first Distribution Calendar
Year is the calendar year immediately preceding the calendar year which contains the Member's
Required Beginning Date. For distributions beginning after the Member's death, the first
Distribution Calendar Year is the calendar year in which distributions are required to begin under
Section C.2(b).
(c) Life Expectancy. Life expectancy as computed by use of the Single Life Table in
Section 1.401(a)(9)-9 of the Treasury Regulations.
(d) Required Beginning Date. The April 1 of the calendar year following the later
of either the calendar year in which the employee attains age 70V2 or the calendar year in
which the employee retires."
Executed this 5 day of /70-3 , 2003.
City of La Quinta
Y
Name: Thomas P. Genovese
Title: City Manager
NB 1:574818.5 8
City of La Quinta
Public Agency Retirement System
Supplementary Retirement Plan
July 20, 1999
PLAN DOCUMENT
F:\LANCE\PARS_SRP\CLIENTS\LaQuinta\Plan Document (Version 3).doc
TABLE OF CONTENTS
Article
Page
I.
Recitals
3
II.
Definitions
4
III.
Eligible Employees
9
IV.
Benefits
10
V.
Contributions
20
VI.
Investments
21
VII.
Vesting
22
VIII.
Administration
23
IX.
Miscellaneous
24
F:\LANCE\PARS_SRP\CLIENTS\LaQuinta\Plan Document (Version 3).doc 2
ARTICLE I
RECITALS
WHEREAS, the City of La Quinta ("Employer") has adopted the California Public
Employees Retirement System ("PERS"), a tax qualified retirement plan
maintained by the State of California for the benefit of eligible employees, and
WHEREAS, the Employer has determined it is in the best interest of the
Employer to provide supplemental retirement benefits to employees who
participate in PERS and who meet the age, service and other requirements
specified herein,
NOW THEREFORE IT IS:
RESOLVED, the provisions contained herein, hereafter called the City of La
Quinta Public Agency Retirement System Supplementary Retirement Plan
("Supplement") are adopted along with the provisions of the Public Agency
Retirement System Trust ("Trust") to provide supplemental retirement benefits to
eligible employees of the Employer. These benefits shall be in addition to the
benefits employees would otherwise receive from PERS, further,
RESOLVED, the provisions of the Supplement and Trust shall establish multiple
trusts of that single plan.
F:\LANCE\PARS_SRP\CLIENTS\LaQuinta\Plan Document (Version 3).doc 3
ARTICLE 11
DEFINITIONS
2.1 'Plan Administrator' means the individual designated by the Employer to
act on behalf of the Employer in all matters relating to the Supplement and
the Trust.
2.2 'Beneficiary' means any person or persons, other than the Employer or the
Trustee, designated by a Participant to receive any benefits which may be
due upon the Participant's death. The Beneficiary of a married Participant
shall be the Spouse of the Participant and may not be changed unless
Spousal Consent is obtained.
2.3 'Code' means the Internal Revenue Code.
2.4 'Compensation' means all compensation for the Plan Year paid in cash by
the Employer to an Eligible Employee for personal services. This definition
of "Compensation" shall be subject to the following:
(a) Compensation shall not include any amounts paid by reason of services
performed on or after the date on which an Employee ceases to be an
Employee.
(b) Compensation shall not include, with respect to any Employee, in any
Plan Year (or such other applicable period specifically designated in this
Supplement), any compensation in excess of $200,000 as adjusted, in
Plan Years beginning before January 1, 1994 and no more than
$150,000 (as adjusted) in Plan Years beginning on or after that date.
(c) For purposes of the Highly Compensated Employee and Family member
definition:
(1) Compensation shall mean total compensation as defined herein
without regard to contributions made under Sections 125, 402(e)(3),
402(h)(1)(B) and, in the case of employer contributions made
pursuant to a salary reduction agreement, 403(b) of the Code.
(2) Compensation paid to a Participant for any Plan Year shall include all
Compensation for that Plan Year paid to any Family Member
(hereafter defined) who is a Participant in this Supplement during
such Plan Year.
F:\LANCE\PARS_SRP\CLIENTS\LaQuinta\Plan Document (Version 3).doc 4
(3) For purposes of applying the annual compensation limit under
Section 401(a)(17) of the Code, the family unit of an Employee,
who is either a 5% owner or is both a highly compensated
employee and one of the ten most highly compensated employees,
will be treated as a single employee with one compensation, and
except for the purpose of determining Compensation below the
plan's integration level, if applicable, the annual compensation limit
will be allocated among the members of the family unit. The
allocation will be made by allocating a portion of the total amount to
be allocated to the Employee which is the same ratio to the total
amount to be allocated as the ratio that the Compensation of the
Employee bears to the total Compensation of all the Employees
who are aggregated for purposes of this section. For this purpose,
a family unit is the Employee who is a 5% owner or one of the ten
most highly compensated Employees, the Employee's Spouse, and
the Employee's lineal descendants who have not attained age 19
before the close of the year.
'Highly Compensated Employee' means any Employee who performed
service for the Employer during the Determination Year who is described in
one or more of the following groups:
(A) a 5% owner, as defined in Section 416(I)(A)(iii) of the Code at any
time during the Determination Year or in the Look Back Year, or
(B) receives compensation in excess of $75,000, (indexed in accordance
with Section 415(d) of the Code) during the Look Back Year, or
(C) received compensation from an Employer in excess of $50,000
(indexed in accordance with Section 415(d) of the Code) during the
Look Back Year and is a member of the top paid group for the Look
Back Year,
(D) is an officer, within the meaning of Section 416(i) of the Code during
the Look Back Year and who receives compensation in the Look Back
Year greater than 50% of the dollar limitation in effect under Section
415(b)(1)(A) for the calendar year in which the Look Back Year
begins, or
(E) is both described in paragraph (B), (C), or (D) above when these
paragraphs are modified to substitute the Determination Year for the
Look Back Year and one of the 100 employees who receives the
most compensation from the Employer during the Determination Year.
The Determination Year is the Plan Year for which determination of who is
highly compensated is being made.
F:\LANCE\PARS_SRP\CLIENTS\LaQuinta\Plan Document (Version 3).doc CJ
'Look Back Year' is the 12 month period immediately preceding the
determination Year.
The top paid group consists of the top 20% of Employees ranked on the
basis of compensation received during the year. For purposes of
determining the number of employees in the top paid group, employees
described in Section 414(q)(8) and Q. & A. 9(b) of Section 1.414(q)-IT of
the regulations are excluded.
The number of officers is limited to 50 (or, if lesser, the greater of 3
employees or 10% of employees) excluding those employees who may be
excluded in determining the top paid group.
When no officer has compensation in excess of 50% of the Section
415(b)(1)(A) limit, the highest paid officer is treated as highly
compensated.
Compensation is compensation within the meaning of Section 415(c)(3)
including elective or salary reduction contributions to a cafeteria plan,
cash or deferred arrangement or tax-sheltered annuity.
Employers aggregated under Section 414(b), (c), (m) or (o) shall be
treated as a single employer.
'Family Member' shall mean an Employee who is, on any one day of the
Plan Year, a spouse, lineal ascendant, lineal descendant, or a spouse of
an ascendant or descendant, including a legally adopted individual, of an
individual who during the Plan Year was:
(A) an active or former Employee and a five percent (5%) owner within
the meaning of Section 416(i)(1)(B)(i) of the Code and the
regulations thereunder, or
(B) one of the ten most highly paid Highly Compensated Employees.
2.5 'Effective Date' means July 20, 1999.
2.6 'Eligible Employee' means any Employee who, pursuant to the provisions of
Article III, is eligible for benefits under this supplement.
2.7 'Employee' means an employee of the Employer.
2.8 'Employer' means the City of La Quinta, a public agency that has adopted
this Supplement subject to the terms of the Trust.
F:\LANCE\PARS_SRP\CLIENTS\LaQuinta\Plan Document (Version 3).doc 6
2.9 'Final Pay' means the 1998-99 annual Compensation subject to PERS
deductions.
2.10 'Hour of Service' means:
(a) Each hour for which an Employee is paid, or entitled to payment, for the
performance of duties for the Employer during the applicable Plan Year.
(1) Each hour for which an Employee is paid, or entitled to payment, by
the Employer (irrespective of whether the employment relationship
has terminated) on account of a period of time during which no
duties are performed due to vacation, holiday, illness, disability,
layoff, jury duty, military duty or a paid leave of absence during the
applicable Plan Year.
(2) For purposes of paragraph (1) above a leave of absence shall
include the absence of an Employee due to pregnancy of the
Employee, birth of a child of the Employee, placement of a child with
the Employee in connection with the adoption of such child by the
Employee or the caring for such child for a period beginning
immediately following such birth or placement. If the normal number
of Hours of Service cannot be determined for an Employee who is
on sick leave or absence as described in this paragraph (2) then
eight Hours of Service for each day while the Employee is absent
shall be used.
(b) Each hour for which back pay, irrespective of mitigation of damages, is
either awarded or agreed to by the Employer.
2.11 'Normal Form of Benefit' means an annuity paid in equal fixed monthly
payments over the life of the Participant.
2.12 'Normal Retirement Age' means age 55.
2.13 'Optional Form of Benefit' means an annuity paid in equal fixed monthly
payments over the life of the Participant and with equal fixed monthly
payments continued over the life of the designated Beneficiary if the
Beneficiary is living at the death of the Participant.
2.14 'PARS' means the Public Agency Retirement System.
2.15 'Participant' means an Eligible Employee who has retired under PERS.
2.16 'PERS' means the California Public Employees' Retirement System.
F:\LANCE\PARS_SRP\CLIENTS\LaQuinta\Plan Document (Version 3).doc 7
2.17 'Plan Year' means a period of twelve (12) consecutive months
commencing July 1 and ending June 30.
2.18 'Public Agency' means a State, a political subdivision of a State, and any
agency or instrumentality of a State or political subdivision of a State.
2.19 'Spouse' means the person to whom the Participant is married as of the
earlier of the date on which the Participant's benefits commence or the
date of the Participant's death. To the extent provided in any qualified
domestic relations order a Participant's former Spouse may be treated as
the surviving Spouse for purposes of this Supplement.
2.20 'Spousal Consent' means a written election signed by the Spouse to name
someone other than the Spouse as Beneficiary and which names the non -
Spouse Beneficiary. Such written election shall be witnessed by a Plan
representative designated by the Administrator or a notary public and shall
acknowledge the effect of such election on the rights of the Spouse.
2.21 'Supplement' means the City of La Quinta Public Agency Retirement
System Supplementary Retirement Plan as adopted by the Employer on
the Effective Date, the provisions of which are contained herein.
2.22 'Trust' means the Public Agency Retirement System Trust.
2.23 'Trustee' means the trustee of the Trust.
2.24 'Year of Service' means a period of twelve (12) consecutive months
coinciding with the Plan Year.
F:\LANCE\PARS_SRP\CLIENTS\LaQuinta\Plan Document (Version 3).doc 8
ARTICLE III
ELIGIBLE EMPLOYEES
3.1 An Employee shall be eligible to receive benefits under this Supplement if
he:
(a) is the City Clerk employed by the Employer as of July 20, 1999,
(b) is at least fifty (50) years of age;
(c) is eligible to retire under PERS;
(d) has completed at least five (5) or more years of full-time employment
with the Employer;
(e) has terminated employment with the Employer on or before September
15, 1999; and
(f) has applied for benefits under this Supplement.
3.2 An Employee shall not be eligible to receive benefits under this Supplement
if he is accruing credit for benefits under another defined benefit plan to
which the Employer contributes.
3.3 An Employee shall begin participation the first of the month following the
time he becomes eligible for benefits under this Article III.
F:\LANCE\PARS_SRP\CLIENTS\LaQuinta\Plan Document (Version 3).doc 9
ARTICLE IV
BENEFITS
4.1 Subject to the provisions of Section 4.3, the monthly amount of benefit shall
be equal to
the Normal Form of Benefit which is equivalent to a lump -sum
contribution of $39,229.52 upon resignation from the Employer or
$8,785.80 paid annually for five years upon resignation from the
employer (hereafter, the "Supplemental Benefit").
4.2 Form of Payment
(a) The Supplemental Benefit shall be paid in the Normal Form of Benefit.
(b) At the option of the Participant, the Supplemental Benefit shall be paid in
an Optional Form of Benefit.
(c) At the option of the Participant, and with the agreement of the
Administrator, and upon completion of a form provided by the
Administrator, the Benefit shall be paid in any other form which is
actuarially equivalent to the Normal Form of Benefit.
(d) The Participant's election of a form of benefit shall become irrevocable
upon the Participant's retirement.
(e) The Participant's designation of a Beneficiary for a benefit paid in the
Optional Form of Benefit shall become irrevocable upon the Participant's
retirement.
4.3 The monthly benefit payable to a Participant under this Supplement at any
time will not exceed:
(a) $7,500 (the "Dollar Limitation") or
(b) 100% of the Participant's average monthly compensation as defined in
Section 1.415-2(d) of the Income Tax Regulations during the three
consecutive calendar years when the total compensation paid to him
was the highest (the "Compensation Limitation") subject to the following:
F:\LANCE\PARS_SRP\CLIENTS\LaQuinta\Plan Document(Vemion 3).doc 10
(1) The maximum shall apply to the pension payable to the Participant
either as a joint and survivor pension or pursuant to an option where
the contingent annuitant is the Participant's spouse; but if the pension
is payable in a form other than the foregoing and other than the
single -life pension, the maximum shall apply to the single -life pension
which is the actuarial equivalent of such pension.
(2) If benefits begin prior to a Participant's Social Security Retirement
Age (as defined in Code Section 415(b)(8)), the Dollar Limitation
applicable to such pension shall be equal to the actuarial equivalent
of the Dollar Limitation where the Dollar Limitation is deemed to be a
pension commencing at the Participant's Social Security Retirement
Age.
(3) If a pension begins after age 65, the maximum Dollar Limitation shall
be the actuarial equivalent of the Dollar Limitation where the Dollar
Limitation is deemed to be a pension commencing at Social Security
Retirement Age. Solely for the purposes of this subsection (3) and
subsection (2) above, the interest rate assumption shall be equal to
5%.
(4) If the Participant has fewer than 10 years of plan participation, the
Dollar Limitation and the $10,000 minimum limitation shall be
multiplied by a fraction, the numerator of which is the number of years
(computed to fractional parts of a year) of participation, and the
denominator of which is 10. If the Participant has fewer than 10
Years of Service the Compensation Limitation shall be multiplied by a
fraction, the numerator being the Participant's Years of Service
(computed to fractional parts of a year) divided by a denominator of
10.
(5) For all purposes of this Plan, the maximum Dollar Limitation of $7,500
shall be automatically increased as permitted by Treasury Department
regulations to reflect cost -of -living adjustments. As a result of such an
adjustment, a pension which had been limited by the provisions of this
Section in a previous Plan Year may be increased with respect to
future payments to the lesser of the adjusted Dollar Limitation amount
or the amount of pension which would have been payable under this
plan without regard to the provisions of this Section 4.3.
Notwithstanding the foregoing, the otherwise permissible annual benefits may
be further reduced to the extent necessary, as determined by the Employer, to
prevent disqualification under Section 415 of the Internal Revenue Code
which imposes the following additional limitations on the benefits payable to
Participants who may also be participating in another tax qualified pension
plan of the Employer.
F:\LANCE\PARS_SRP\CLIENTS\LaQuinta\Plan Document (Version 3).doc 11
If the Employer maintains, or at any time maintained, a qualified defined
contribution plan covering any Participant, the sum of the Participant's Defined
Benefit Fraction and Defined Contribution Fraction will not exceed 1.0 for any
Limitation Year (Plan Year).
For purposes of this section Compensation shall mean all of each
Participant's compensation (as that term is defined in Code 415(c)(3)).
For any Self -Employed Individual covered under the Supplement,
compensation will mean Earned Income. Compensation includes only
that compensation which is actually paid to, or included in the gross
income of, the Participant during the "applicable period". For this purpose,
except as specified to the contrary elsewhere in this document, the
applicable period will be the Plan Year unless applicable law mandates a
different period, in which case the applicable period will be such legally
required period.
The annual compensation of each Participant taken into account under
the Supplement for any year will not exceed $150,000, as adjusted by the
Treasury Secretary at the same time and in the same manner as under
Code 415(d), except that the dollar increase in effect on January 1 of any
calendar year is effective for years beginning in such calendar year. If
compensation is determined on a period of time that contains fewer than
12 calendar months, then the annual compensation limit is an amount
equal to the annual compensation limit for the calendar year in which the
compensation period begins multiplied by the ratio obtained by dividing
the number of full months in the period by 12.
In determining the compensation of a Participant for purposes of this limit,
the rules of Code 414(q)(6) will apply, except in applying these rules,
"family" will include only the Participant's spouse and any lineal
descendants of the Participant who have not attained age 19 before the
close of the year. If, as a result of the application of these rules, the
adjusted $150,000 limit is exceeded, then (except for determining the
portion of compensation up to the integration level), the limit will be
prorated among the affected individual's compensation determined under
this section before this limit is applied.
If compensation for any prior plan year is taken into account in
determining the employee's contributions or benefits for the current year,
the compensation for such year is subject to the applicable annual
compensation limit in effect for that prior year.
Defined Benefit Fraction: A fraction, the numerator of which is the sum of
the Participant's projected annual benefits under all the defined benefit
FALANCE\PARS_SRP\CLIENTS\LaQuinta\Plan Document (Version 3).doc 12
plans (whether or not terminated) maintained by the Employer, and the
denominator of which is the lesser of 125% of the dollar limit determined
for the Limitation Year under Code 415(b) and (d) or 140% of the highest
average compensation, including any adjustments under Code 415(b).
Notwithstanding the above, if the Participant was a Participant as of the
first day of the first Limitation Year beginning after December 31, 1986, in
one or more defined benefit plans maintained by the Employer that were
in existence on May 6, 1986, the denominator of this fraction will not be
less than 125% of the sum of the annual benefits under such plans that
the Participant had accrued as of the close of the last Limitation Year
beginning before January 1,1987, disregarding any changes in the terms
and conditions of the plan after May 5, 1986. The preceding sentence
applies only if the defined benefit plans individually and in the aggregate
satisfied Code 415 for all Limitation Years beginning before January 1,
1987.
Defined Contribution Dollar Limitation: $30,000 or if greater, one-fourth of
the defined benefit dollar limitation of Code 415(b)(1) as in effect for the
Limitation Year.
Defined Contribution Fraction: A fraction, the numerator of which is the
sum of the Annual Additions to the Participant's account under all the
defined contribution plans (whether or not terminated) maintained by the
Employer for the current and all prior Limitation Years (including the
Annual Additions attributable to the Participant's nondeductible employee
contributions to all defined benefit plans, whether or not terminated,
maintained by the Employer, and the Annual Additions attributable to all
welfare benefit funds, as defined in Code 419(e), and individual medical
accounts, as defined in Code 415(1)(2), maintained by the Employer), and
the denominator of which is the sum of the maximum aggregate amounts
for the current and all prior Limitation Years of service with the Employer
(regardless of whether a defined contribution plan was maintained by the
Employer). The maximum aggregate amount in any Limitation Year is the
lesser of 125% of the dollar limitation determined under Code 415(b) and
(d) in effect under Code 415(c)(1)(A) or 35% of the Participant's
compensation for such year.
If the Employee was a Participant as of the end of the first day of the first
Limitation Year beginning after December 31,1986 in one or more defined
contribution plans maintained by' the Employer that were in existence on
May 6, 1986, the numerator of this fraction will be adjusted if the sum of
this fraction and the Defined Benefit Fraction would otherwise exceed 1.0
under the terms of this plan. Under the adjustment, an amount equal to
the product of (i) the excess of the sum of the fractions over 1.0 times (ii)
the denominator of this fraction, will be permanently subtracted from the
F:\LANCE\PARS_SRP\CLIENTS\LaQuinta\Plan Document (Version 3).doc 13
numerator of this fraction. The adjustment is calculated using the
fractions as they would be computed as of the end of the last Limitation
Year beginning before January 1, 1987, and is regarding any changes in
terms and conditions made after May 5, 1986, but using the 415 limitation
applicable to the first Limitation Year beginning on or after January 1,
1987.
Employer: For purposes of this Article, Employer will mean the employer
named herein and all members of a controlled group of corporations (as
defined in Code 414(b) as modified by 415(h), all commonly controlled
trades or businesses (as defined in 414(c) as modified by 415(h) or
affiliated service groups (as defined in 414(m) of which the Employer is a
part, and any other entity required to be aggregated with the Employer
pursuant to regulations under 414(o).
For purposes of the above limitation, all defined benefit plans of the Employer,
whether or not terminated, are to be treated as one defined benefit plan and
all defined contribution plans of the Employer, whether or not terminated, are
to be treated as one defined contribution plan.
(c) The annual benefit to which any Participant may be entitled to receive
in the form of a straight life annuity, shall not exceed the lesser of
$90,000 or 100% of the participant's highest three consecutive years
average compensation (or fewer, if the participant does not have three
consecutive years).
(d) If a retirement benefit in any form other than a straight life annuity is
offered, or if the Participant contributes or makes rollover contributions,
then this benefit must be adjusted to a straight life annuity, beginning at
the same age, which is the actuarial equivalent of such benefit. In
order to determine actuarial equivalence of different forms of benefit
payments, the interest rate assumption may not be less than the
greater of 5 percent of the rate specified in the plan for determining
actuarial equivalent for the particular form of retirement benefit.
(e) If a retirement benefit is provided at or after age 62 but prior to the
Participant's Social Security retirement age ("SSRA") then the benefit
may not exceed an annual benefit of $90,000 reduced by (i) in the case
of a participant whose SSRA is 65 , 5/9 of 1 % for each month by which
benefits commence before the month in which the participant attains
age 65, or (ii) in the case of a Participant whose SSRA is greater than
65, 5/9 of 1 % for each of the first 36 months and 5/12 of 1 % for each
additional month (up to 24) by which benefits commence before the
month in which the Participant attains SSRA. If the benefit began
before age 62, the benefit must be limited to the actuarial equivalence
F:\LANCE\PARS_SRP\CLIENTS\LaQuinta\Plan Document (Version 3).doc 14
of the Participant's limitation for benefits commencing at age 62, with
the reduced dollar limitation for such benefits further reduced for each
month by which benefits commence before the month in which the
Participant attains age 62. In order to determine actuarial equivalence
for this purpose, the interest rate assumption used may not be less than
the greater of 5% or the rate specified herein for determining actuarial
equivalence for early retirement. SSRA is age 65 if the Participant was
born before 1 /1 /38, age 66 if born before 1 /1 /55, and age 67 if born
after 12/31 /54.
(f) If benefits commence after Social Security retirement age ("SSRA"), the
maximum dollar limitation on such benefit may be increased to an
amount that is actuarially equivalent to the maximum dollar limitation on
a benefit commencing at SSRA. The increased maximum benefit,
however, must not exceed 100 percent of the Participant's high 3 year
average compensation. The interest rate assumption used to
determine actuarial equivalence for this purpose must be the lesser of
5% of the rate specified for determining actuarial equivalence herein for
retirement after SSRA, and mortality may not be taken into account if
there is no forfeiture upon death.
(g) The limitations on benefits of Section 415(b) of the Code shall not apply
where the total annual benefits payable to a Participant under this
defined benefit plan and all other defined benefit plans of the Employer
do not exceed $10,000 in the aggregate. Where a plan provides the
$10,000 minimum limitation, the plan must provide that the minimum
limitation is not applicable for a Participant whose employer maintains
or has maintained a defined contribution plan in which such Employee
participated. For purposes of the $10,000 minimum limitations the
limitations shall be divided by a fraction which shall be: years of service
with the employer as of and including the current limitation year divided
by 10 and for purposes of the maximum dollar limitation the amount
shall be multiplied by a fraction which shall be: years of participation
with the employer as of, and including the current limitation year divided
by 10.
4.4 Actuarial Equivalence
(a) For the purpose of establishing actuarial equivalence between the
Normal and Optional Form of benefit, the monthly amount of benefit
payable under an Optional Form of Benefit shall be a fixed percentage
of the monthly amount of benefit payable under the Normal Form of
Benefit, as determined by the following table:
F \LANCE\PARS_SRP\CLIENTS\LaQuinta\Plan Document (Version 3).doc 15
55
56
57
58
59
60
61
Participant naming a Beneficiary under Optional Form of Benefit
(percentage payable)
Age of Beneficiary
35 40 45 50 55 60 65 70
83.76%
82.71 %
81.60%
80.45%
79.23%
77.96%
76.63%
62
75.22%
Age of
Participant 63
73.76%
64
72.20%
65
70.63%
66
68.98%
67
67.27%
68
65.50%
69
63.69%
70
61.84%
84.87%
83.83%
82.74%
81.60%
80.39%
79.13%
77.80%
76.40%
74.93%
73.40%
71.80%
70.13%
68.41 %
66.63%
64.80%
62.93%
86.24%
85.23%
84.17%
83.05%
81.87%
80.63%
79.31 %
77.92%
76.46%
74.93%
73.33%
71.66%
69.93%
68.14%
66.29%
64.40 %
87.85%
86.90%
85.89%
84.82%
83.68%
82.48%
81.19%
79.83%
78.40%
76.89%
75.30%
73.63%
71.90%
70.11 %
68.25%
66.35%
89.66%
88.80%
87.87%
86.87%
85.90%
84.67%
83.45%
82.15%
80.77%
79.30%
77.75%
76.12%
74.41 %
72.62%
70.77%
68.86%
91.58%
93.48%
95.22%
90.83%
92.86%
94.75%
90.01 %
92.18%
94.23%
89.13%
91.44%
93.65%
88.17%
90.64%
93.02%
87.14%
89.76%
92.31 %
86.03%
88.30%
91.53%
84.83%
83.54%
82.16%
80.69%
79.13%
77.48%
75.75%
73.94%
72.06%
87.74%
86.60%
85.36%
84.02%
82.59%
81.06%
79.43%
77.72%
75.92%
90.67%
89.72%
88.68%
87.54%
86.30%
84.95%
83.51 %
81.97%
80.33%
Percentages
shall be
determined by
month of age
using straight-line
interpolation
between the
figures provided
therein.
(b) For the purposes of establishing actuarial equivalence between the
Normal Form of Benefit and other forms of benefit, as determined
under 4.2(c), the mortality assumption shall be 1983 GAM with 6.00%
interest per annum and 6.00% load, and the interest assumption shall
be 6.00% per annum. The present value of benefits shall be equal
based on these assumptions.
4.5 An employee who is a Participant will have his entire interest distributed in
accordance with Section 401(a)(9) of the Code. A Participant's entire
interest will be:
(a) Distributed commencing not later than the required beginning date (in
accordance with Internal Revenue Service regulations) and must be
made over one of the following periods (or a combination thereof):
(1) the life of the Participant,
(2) the lives of the Participant and a designated Beneficiary,
F:\LANCE\PARS_SRP\CLIENTS\Laduinta\Plan Document (Version 3).doc 16
(3) a period not extending beyond the life expectancy of the Participant,
or
(4) a period not extending beyond the life expectancy of the Participant
and a designated Beneficiary.
(b) The required beginning date for purposes of this Section shall be the
April 1 st of the calendar year following the later of:
(1) the calendar year in which the Participant attains age 701/2, or
(2) the calendar year in which the Participant retires.
(c) For purposes of this Article, life expectancy of the Participant and life
expectancy of the Participant and designated Beneficiary will be
computed using the return multiples contained in Section 1.72-9 of the
Income Tax Regulations. A Participant's life expectancy (and his
Spouse's life expectancy) may not be recalculated.
(d) Distribution of a Participant's interest will be made in accordance with
Section 401(a)(9) of the Code and the provisions of such Code section
will supersede any provision which may be inconsistent with such Code
section.
(e) If distribution is considered to have commenced in accordance with the
Regulations before the Participant's death, the remaining interest will be
distributed as least as rapidly as under the method of distribution being
used as of the date of the Participant's death. If the Participant dies
before the time when distribution is considered to have commenced in
accordance with the Regulations, the method of distribution shall satisfy
the following requirements: (a) any remaining portion of the Participant's
interest that is not payable to a beneficiary designated by the Participant
will be distributed within five years after the Participant's death; and (b)
any portion of the Participant's interest that is payable to a beneficiary
designated by the Participant will be distributed either (i) within five
years after the Participant's death, or (ii) over the life of the beneficiary
or over a period certain not to extend beyond the life expectancy of the
beneficiary, commencing not later than the end of the calendar year
following the calendar year in which the Participant died (or, if the
designated beneficiary is the Participant's surviving spouse,
commencing not later than the end of the calendar year following the
calendar year in which the Participant would have attained age 701/2).
4.6 Distributions made to a Participant's designated Beneficiary under this Plan
shall be incidental to the primary purpose of providing benefits to
FALANCE\PARS_SRP\CLIENTS\LaQuinta\Plan Document (Version 3).doc 17
Participants and such distributions will be made in accordance with Section
401(a)(9) of the Code.
4.7 In no event shall the annuity commencement date of a Participant who
becomes entitled to benefits under this Supplement be later than the 60th
day after the close of the Plan Year in which the latest of the following
events occurs:
(a) The Participant reaches his normal retirement date;
(b) The Participant qualifies for permanent and total disability;
(c) The Participant terminates employment with the Employer.
Notwithstanding the above, a Participant may make written application to
the Administrator for a deferred annuity commencement date which may be
the first day of any month subsequent to the latest date specified in (a), (b)
or (c) above but in no event will such date be later than the required
beginning date specified in this Article.
4.8 Direct Rollovers
(a) This section applies to all distributions made on or after January 1,
1993. Notwithstanding any provision of the plan to the contrary that
would otherwise limit a distributee's election under this plan, a
distributee may elect, at the time and in the manner prescribed by the
Plan Administrator, to have any portion of an eligible rollover
distribution paid directly to an eligible retirement plan specified by the
distributee in a direct rollover.
(b) Definitions
(i.) 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 ten years or more; any
distribution to the extent such distribution is required under Section
401(a)(9) of the Internal Revenue Code; and the portion of any
distribution that is not includible in gross income (determined
without regard to the exclusion for net unrealized appreciation with
respect to employer securities).
F:\LANCE\PARS_SRP\CLIENTS\LaOuinta\Plan Document (Version 3).cloc 18
(ii.) Eligible retirement plan: An eligible retirement plan is an individual
retirement account described in Section 408(a) of the Code, an
individual retirement annuity described in Section 408(b) of the
Code, an annuity plan described in Section 403(a) of the Code, or
a qualified trust described in Section 401(a) of the Code that
accepts the distributee's eligible rollover distribution. However, in
the case of an eligible rollover distribution to the surviving spouse,
an eligible retirement plan is an individual retirement account or an
individual retirement annuity.
(iii.) Distributee: A distributee includes an Employee or former
Employee. In addition, the Employee's or the former Employee's
surviving spouse and the Employee's or former Employee's spouse
or former spouse who is the alternate payee under a qualified
domestic relations order, 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 to the
eligible retirement plan specified by the distributee.
4.9 All defined contribution plans (including voluntary employee contribution
accounts in a defined benefit plan) and key employee accounts under a
welfare benefit plan described in Section 419 of the Internal Revenue Code,
as well as employer contributions allocated to an IRA of Employee, whether
or not terminated, will be treated as one defined contribution plan for
purposes of the limitations under Section 415(c) of the Code.
If the Employer is a member of a controlled group of corporations or
commonly controlled trades or businesses, or a member of an affiliated
service group, within the meaning of Sections 414(b), (c), or (m) and 415(g)
and (h) of the Code, all such employers shall be treated as a single
employer for purposes of the Plan's application of the Code Section 415
limitations.
F:\LANCE\PARS_SRP\CLIENTS\LaQuinta\Plan Document (Version 3).Wc 19
ARTICLE V
CONTRIBUTIONS
5.1 Forfeitures arising under the Supplement shall be applied to reduce
Employer contributions.
5.2 All assets shall be held and used for the exclusive benefit of Eligible
Employees and their Beneficiaries.
F:\LANCE\PARS_SRP\CLIENTS\LaQuinta\Plan Document (Version 3).doc 20
ARTICLE VI
INVESTMENTS
6.1 Investment of Trust assets shall be governed by the following provisions as
indicated by the initials of the Plan Administrator:
(a) Yes ` -' No Pursuant to Section 4.1(a)(2) of the Trust, the
Administrator hereby appoints the Trustee as the fiduciary with respect to
the authority and duty to direct the investment and management of all Trust
assets.
(b) Yes No�� Pursuant to Section 4.1(a)(2) of the Trust, and subject to
the acceptance of the Trustee, the Administrator hereby appoints
as the fiduciary with respect to the authority and duty to direct the
investment and management of all Trust assets. The following statement of
investment policy shall govern the investment of the Trust assets, subject to
the acceptance of such assets by the Trustee:
(c) Yes Now'`--/ Pursuant to Section 4.1(a)(2) of the Trust, the
Administrator shall remain the fiduciary with respect to the authority and duty
to direct the investment and management of all Trust assets. The following
statement of investment policy shall govern the investment of the Trust
assets, subject to the acceptance of such assets by the Trustee:
F:\LANCE\PARS_SRP\CLIENTS\LaQuinta\Plan Document (Version 3).doc L1
ARTICLE VII
VESTING
7.1 Each Participant shall have a nonforfeitable right to his benefit under this
Supplement upon meeting the requirements of Article III.
7.2 If the Plan's vesting schedule is amended or the Plan is amended in any
way that directly or indirectly affects the computation of a Participant's
nonforfeitable percentage, or if the Plan is deemed amended by an
automatic change to or from a top heavy vesting schedule, each Participant
with at least three years of service with the Employer may elect within a
reasonable period after the adoption of the amendment or change to have
his nonforfeitable percentage computed under the Plan without regard to
such amendment or change Election Period. The period during which the
election may be made will begin with the date the amendment is adopted or
deemed to be made and will end on the latest of:
i.) 60 days after the amendment is adopted;
ii.) 60 days after the amendment becomes effective; or
iii.) 60 days after the Participant is issued written notice of the
amendment by the Employer or Plan Administrator.
7.3 A top heavy vesting schedule shall mean: A vesting schedule under which
an employee who has completed 3 years of service with the Employer has
a nonforfeitable right to 100% of his accrued benefit.
F:\LANCE\PARS_SRP\CLIENTS\LaQulnta\Plan Document (Version 3).doc 22
ARTICLE VIII
ADMINISTRATION
8.1 The Employer shall designate an individual to serve as the Plan
Administrator. The Plan Administrator shall act on behalf of the Employer in
all matters relating to the Supplement and Trust, and any subsequent
Supplements permitted by this Plan.
8.2 The Plan Administrator shall keep accurate books and records with respect
to Participants, their service with the Employer and their compensation and
shall certify the same to the Trustee.
8.3 The Plan Administrator, in interpreting any provision of this Supplement or
in making any judgment or determination with respect to any person
hereunder, shall apply uniform rules in a like manner to all persons under
similar conditions.
8.4 In any case where the provisions of this Supplement require the consent or
approval of the Plan Administrator of an election or request made by an
Employee, Participant or Beneficiary, the Plan Administrator shall act on
such election or request as promptly as shall be reasonable in the
circumstances.
8.5 The Trustee shall advise the Plan Administrator of any changes in
applicable law, regulations or proposed regulations which require the
Employer to amend the Supplement or otherwise take action to maintain
the qualified status of the Supplement.
F:\LANCE\PARS_SRP\CLIENTS\LaQuinta\Plan Document (Version 3).doc 23
ARTICLE IX
MISCELLANEOUS
9.1 Attachment and Assignment of Benefits
(a) To the maximum extent permitted by law, the benefits or payments
herein provided shall not in any way be liable to attachment,
garnishment or other process, or be seized, taken, appropriated or
applied by any legal or equitable process, to pay any debt or liability of
any Participant. Except as otherwise permitted by law or by an order,
decree or judgment issued pursuant to a Qualified Domestic Relations
Order, benefits or payments under this Supplement may not be
assigned. In the event of any conflict between provisions of this
Supplement and the terms of any description issued in conjunction with
the Supplement, the provisions of this Supplement shall control.
(b) For purposes of this Supplement a "Qualified Domestic Relations Order"
means a domestic relations order (as specified below) which creates or
recognizes the existence of an alternate payee's (any spouse, former
spouse, child or other dependent of a Participant) right to, or assigns to
an alternate payee the right to, receive all or a portion of the benefits
payable to a Participant. A domestic relations order means any
judgment, decree or order (including approval of a property settlement
agreement) which relates to the provision of child support, alimony
payments, or marital property rights to a spouse, former spouse, child or
other dependent of a Participant and is made pursuant to a state
domestic relations order. Such order (a) must clearly specify (1) the
name and last known mailing address (if any) of the Participant and the
alternate payee covered by the order, (2) the amount or percentage of
the Participant's benefit to be paid by the Supplement to each alternate
payee, or the manner in which such amount or percentage is to be
determined, (3) the number of payments or period to which such order
applies, and (4) the name of each plan to which such order applies, and
(b) must not require (1) the Supplement to provide any type or form of
benefits, or any option, not otherwise provided under the Supplement, or
(2) provide increased benefits, and (3) the payment of benefits to an
alternate payee which are required to be paid to another alternate payee
under another previously Qualified Domestic Relations Order. The
provisions relating to the establishment of a Qualified Domestic
Relations Order and the payment of any benefits to an alternate payee
shall be applied in the method and manner which is consistent with
Section 414(p) of the Code.
F:\LANCE\PARS_SRP\CLIENTS\LaDuinta\Plan Document (Version 3).doc 24
9.2 As used herein, the masculine shall include feminine and the singular shall
include the plural, where applicable.
9.3 The Employer shall have the right to amend this Supplement. No
amendment, however, shall reduce a Participant's accrued benefit. Such
amendments shall not be effective until received and acknowledged by the
Trust and the Trust Administrator.
Executed this Ytllday of , 19 '-) 7, at California.
Signature of Plan Administrator
7-Aot ia5 19 6ena ✓-eSe
Name of Plan Administrator
G.-1y "Verna I-Cr
Title of Administrator
La 0 /IiL-/k
Name of Employer
Suture of Trustee
FyR4 MiLTMI". l''F1'.'i:�ai� ` .i 'a & IAVST 0F?9 : E f I
F:\LANCE\PARS_SRP\CLIENTS\LaDuinta\Plan Document (Version 3).doc 25
Public Agency Retirement System
TRUST AGREEMENT
Version 4
August 22, 1994
Copyright C 1992 PHASE II SYSTEMS. All rights reserved. Reproduction in part or whole is prohibited.
Py. I LANCE\PARS\DOC UM EN*nCURR_DOC\TRST4. W K4(22-AUG-94)
PUBLIC AGENCY RETIREMENT SYSTEM TRUST
Huntington Beach City School District and State Center Community College District (hereinafter referred
to as Employer") do hereby adopt the following Retirement Plan Trust.
ARTICLE I
ELECTIVE PROVISIONS
1.1 Initial Deposit
In establishment of this Trust, the Employer has paid to Trustee the sum of at least One Thousand
Dollars ($1,000.00) as its initial contribution.
1.2 Effective Date
The effective date of this Trust is July 1, 1991.
1.3 Trustee
The Trustee is Imperial Trust Company or any successor(s) as named in any amendment hereto.
PB I LANCE\PARS\DOCUMEN1'\CURR_DOC\'I'RST4. WK4(22-AUG-94)
ARTICLE II
PRELIMINARY MATTERS
2.1 The Trust
This trust and the related Public Agency Retirement System are all parts of a single, integrated
employee benefit system. The Trust's fiscal year shall be the Plan Year as the same may be changed
from time to time.
2.2 Definition of Terms
In construing the terms of this Trust, words and terms defined in the Plan shall, when used herein,
have the same meaning as in the Plan, unless the context of this Trust clearly indicates otherwise.
2.3 Purpose
This Trust is created for the purpose of receiving contributions made under the Plan; accumulating,
managing and investing those contributions; and providing benefits to the Participants of the Plan or
their Beneficiaries. This Trust may also be a complete amendment and restatement of its
predecessor, if any, pursuant to Section 3.
This Trust is intended to evidence the Trust portion of an employee's retirement plan(s) and trust,
established by the adopting Employer for the benefit of eligible employees and to qualify as a
qualified employees' retirement trust under the appropriate provisions of the Internal Revenue
Code.
2.4 Reversion
In the event the Plan is terminated, the vested interest of any participant shall not be diminished or
adversely affected. Except as may be provided in this Trust or the Plan, such termination shall not
vest in the adopting Employer any corpus or income under the Trust, nor permit the Plan to
discriminate as to coverage, or as to allocation of contributions or earnings, in favor of employees
who are officers, shareholders, or highly compensated, nor cause the trust to loose its exemption
pursuant to Code Section 501 (a). No modification, amendment or termination of the Plan shall be
construed a termination of the Trust so as to require the Trustee to make a distribution of any of
the Trust assets to any Participant, unless otherwise expressly provided pursuant to written
instructions from the Administrator.
If any Employer participating in this Trust adopts a retirement plan whose assets are maintained in
this trust and makes application to the Internal Revenue Service, within one year from the date of
adoption of such Plan, for a determination that such plan is a qualified plan under Section 401 (a) of
the Internal Revenue Code, and if such plan is determined by the Internal Revenue Service not to
be a qualified plan, then all contributions and investment income attributable to such plan shall be
returned to the Employer upon application to the Trustee.
2.5 Adoption by Other Employers
Notwithstanding anything to the contrary, any other Employer whether an affiliate or subsidiary or
not, may adopt this Trust and all of the provisions hereof, and participate herein and be known as
an adopting Employer, by a properly executed document evidencing said intent.
pK. 2 LANCE\PARSVDOCUMENTVCURR_DOCATRST4_ W K4(22-AUG-94)
ARTICLE HI
GENERAL ADMINISTRATION
3.1 Selection of Trustee
The initial two adopting Employers, by a unanimous vote, may appoint any individual, individuals,
institution or combination thereof to serve as Trustee. The Trustee so appointed, or any successor
Trustee appointed pursuant to a two-thirds vote of the Participating Employers, shall be deemed to
have accepted this Trust and to have agreed to carry out all of the provisions hereof.
3.2 Conflict with Plan
If the provisions of this Trust conflict with the provisions of the Plan, the Plan provisions shall be
followed.
3.3 The Administrator
Each adopting Employer shall designate an individual or a position to serve as the Administrator.
The Administrator shall act on behalf of the Employer in all matters relating to this Plan and Trust.
The Employer shall keep accurate books and records with respect to its Employees, their service
with the Employer and their Compensation and shall certify the same to the Administrator.
3.4 Directions to -Trustee
All directions to the Trustee from the Administrator must be in writing and need be signed by only
one Administrator. For all purposes of this Trust, "direction" shall include any certification,
notice, authorization, application or instruction of the Administrator and/or Trustee appropriately
communicated. Direction shall be implied if the Administrator, having knowledge of the Trustee's
intentions, fail to file written objection at least 30 days prior to the completion of procedures
contemplated.
The Trustee may request directions or clarification of directions received and may delay acting
until clarification is received. In the absence of timely received direction or clarification, or if the
Trustee considers any direction to be a violation of the Trust, the Employees Retirement Security
Act, the Code, or any local law, the Trustee shall in its sole discretion take appropriate action, or
refuse to act upon a direction, without incurring liability to the Administrator or participants for
such action or failure to act.
3.5 Resignation or Removal of Trustee
The Trustee may resign at any time by giving at least ninety (90) days prior written notice to the
Administrator. The adopting Employer may remove the Trustee by giving at least ninety (90) days
prior written notice to the Trustee and withdrawing from the PARS Trust. In either case, the
Employer's appointment of a successor Trustee will vest the successor Trustee with title to the
withdrawing participation employer's Trust Fund Assets upon acceptance of such appointment.
pg. 3 LANCE\PARS\DOCUMENT\CURR_DOC\TRST4. W K4(22-AUG-94)
3.6 Co -Trustees
Where there is more than one Trustee, a majority of such Trustees shall be vested with the right to
make any decision, undertake any action or execute any documents affecting this Trust without the
approval of the dissenting Trustees. In the event there are co -Trustees, any directions (as defined
in Section 3.4) need to be executed by only one of the co -Trustees.
3.7 Trust Administrator
The Trust shall appoint a Trust Administrator to perform such administrative services as deemed
necessary by the Trustee, on behalf of, and at the direction of the Trustee.
3.8 Resignation or Removal of Trust Administrator
The Trust Administrator may resign at any time by giving at least one hundred twenty (120) days
written notice. The adopting Employers, by a two-thirds majority vote, may remove the Trust
Administrator by giving at least one hundred twenty (120) days written notice to the Trust
Administrator and to the Trustee.
3.9 Trust Fund
The contributions received by the Trustee from each adopting Employer shall be held and
administered pursuant to the terms hereof without distinction between income and principal and
without liability for the payment of interest thereon except as expressly provided herein.
pg, 4 LANCE\PARS\DOCUMENTICURR_DOC\TRST4. WK4(22-AUG-94)
ARTICLE IV
THE TRUSTEE
4.1 Investments
a) Fiduciary withth Respect to Investments
Except as herein provided, the Administrator shall be the Fiduciary with respect to the
authority and duty to direct the investment and management (including the power to direct the
acquisition and disposition) of the Trust Assets:
1) The adopting Employer may, by resolution of its governing body, terminate the
Administrator's right to direct the investment and management of all or any portion of the
Trust Assets by transferring to the Trustee or an Investment Manager the authority and
duty to direct the investment and management of all or any portion of the Trust Assets, as
the case may be.
2) The Employer may, but need not, by appropriate Administrator action appoint the Trustee
or an Investment Manager to direct the investment and management including the power to
to acquire and dispose of) of all or any portion of the Trust Assets.
b) A certified copy of any such Governing Body resolution or Administrator action pursuant to
Section 4.1 b) of this Trust shall be delivered to the Trustee, whereupon the Trustee or
Investment Manager, as the case may be, shall assume fiduciary responsibility with respect to
the investment and management of such Trust Assets. Any transfer of investment authority to
the Trustee or to an Investment Manager may be revoked upon receipt by the Trustee of a
notice from either the adopting Employer through its governing body or the Administrator, as
the case may be. The appointment, selection and retention of a qualified Investment manager
shall be solely the responsibility of the Administrator or the adopting Employer, as the case
may be. The Trustee is to rely upon the fact that said Investment Manager is authorized to
direct the investment and management of the assets of the aforesaid Trust until such time as
the adopting Employer, or Administrator, as the case may be, shall notify the Trustee in
writing that another Investment Manager has been appointed in the place and stead of the
of the Investment Manager named, or, in the alternative, that the Investment Manager named
has been removed.
c) When Trustee is not Directing Investments
During such period or periods of time, if any, as the Administrator or an Investment Manager
is authorized to direct the investment and management of the Trust Assets, the Trustee shall
(subject to the overriding limitations hereinafter set forth) effect and change investment of the
Trust Fund as directed in writing by the Administrator, or Investment Manager, as the case
may be, and shall neither effect nor change any such investments without such direction and
shall have no right, duty or responsibility to recommend investments or investment changes.
The following provision shall govern the Trustee during such period or periods.
1) So long as the Administrator retains or reacquires full power and responsibility to direct
the Trustee with respect to the investment and management of all or any portion of the
assets of the Trust Fund, the Trustee shall not be liable nor responsible for losses or
unfavorable results arising from the Trustee's compliance with proper directions of the
Administrator which are made in accordance with the terms of the Plan and this Trust and
which are not contrary to the provisions of any applicable federal or state statute
regulating such investment and management of the assets of an employee benefit trust.
2) In the event that an Investment Manager is given full authority and responsibility with
respect to the investment and management of the Trust Assets, the Trustee or the
Administrator shall not be liable or responsible in any way for any losses or other
unfavorable results arising from the Trustee's compliance with investment or
management directions received by the Trustee from the Investment Manager.
pg_ 5 LANCEVPARSVDOCUMENTICURR_DOCATRST4. W K4(22-AUG-94)
3) All directions concerning investments made by the Administrator or the Investment
Manager shall be signed by the authorized person or persons acting on behalf of the
Administrator or the Investment Manager, as the case may be.
4) The Trustee shall be entitled to rely upon directions which the Trustee receives. The
Trustee shall be under no duty to question any directions of the Investment Manager or
Administrator nor to review any securities or other property of the Trust constituting
assets thereof with respect to which an Investment Manager has investment responsibility,
nor to make any suggestions to such Investment Manager in connection therewith. The
Trustee shall, as promptly as possible, comply with any written directions given by the
Administrator or an Investment Manager hereunder. The Trustee shall not be liable, in
any manner nor for any reason, for the making or retention of any investment pursuant to
such directions, nor shall the Trustee be liable for its failure to invest any of all of the
Trust Funds in the absence of such written directions.
5) During such period of time, if any, as the Administrator or an Investment Manager is
authorized to direct the Trustee, the Trustee shall have no obligation to determine the
existence of any conversion, redemption, exchange, subscription or other right relating
to any securities purchased of which notice was given prior to the purchase of such
securities, and shall have no obligation to exercise any such right unless the Trustee
is informed of the existence of the right and is instructed to exercise such right, in
writing, by the Administrator or the Investment Manager, as the case may be, within a
reasonable time prior to the expiration of such right.
6) In any event, neither the Administrator nor any Investment Manager referred to above
shall direct the purchase, sale or retention of any assets of the Trust Fund if such
directions are not in compliance with the applicable provisions of the Act and any
regulations or rulings issued thereunder.
4.2 Trustee Fees
As may be agreed upon from time to time by the adopting Employer and Trustee, the Trustee will
be paid reasonable compensation for services rendered or reimbursed for expenses properly and
actually incurred in the performance of duties with respect to the Trust.
In the absence of specific arrangement for such payments, any fee or other compensation or
reimbursed expenses shall be withdrawn by the Trustee from the Trust, unless paid by the adopting
Employer. Such compensation shall include accounting, legal and administrative services rendered
by or to the Trustee unless specifically excluded by appropriate written agreement.
To the extent that the Trustee fees are to be charged against Participant contributions, the
adopting Employer shall so advise each Participant.
pg 6 LANCE\PARS\DOCUMENT\CURR_DOC\TRST4. WK4(22-AUG-94)
4.3 Contributions
The adopting Employer shall make all of its contributions to the Trustee, and shall also transmit all
contributions of its Participants, as may be required or allowed by the Plan. Such contributions
shall be in cash. All contributions shall be paid to the Trustee for investment and reinvestment
pursuant to the terms of this Trust Agreement. The Trustee shall not have any duty to determine
or inquire whether any contributions to the Trust made to the Trustee by any adopting Employer
are in compliance with the Plan; nor shall the Trustee have any duty or authority to compute any
amount to be paid to the Trustee by any adopting Employer; nor shall the Trustee be responsible
for the collection or adequacy of the Trust to meet and discharge liabilities under the Plan.
4.4 Directing Investments
Except as provided in Section 4.1 a), the Administrator shall have the power to direct the
investments of all monies held by Trustee and constituting part of the Trust Fund hereunder.
However, pending any investment directions, such cash in the Trust Fund in an amount as is
reasonable in the discretion of the Trustee shall be deposited in an interest -bearing account,
which may be an interest -bearing account of Trustee.
4.5 Purchase -of-Contracts
The Trustee shall purchase individual or group insurance, annuity, preliminary term, group
pension, and variable annuity contracts in accordance with the directions of the Administrator.
4.6 Records
The Trustee shall maintain accurate records and detailed accounts of all investments, receipts,
disbursements and other transactions hereunder. Such records shall be available at all
reasonable times for inspection by the Administrator or its designated consultants and the
Employer or its authorized representative. The Trustee shall, at the direction of the Administrator,
submit to the Administrator or its designated consultants such valuations, reports or other
information as the Administrator or its designated consultants may reasonably require.
4.7 Statements
The Trustee shall render to the Administrator, as soon as practicable after each Plan Year, a
statement of its accounts pursuant to this Section 4.7 on the basis of the Trust's established
accounting period. If Trustee is a bank, it shall render the statement within sixty (60) days after
the Plan Year end. If the Trustee maintains separate accounts for each Participant, it shall also
render to each Participant an annual statement of his Participant Account.
The Administrator may approve such statements either by written notice or by failure to express
objections to such statement by written notice delivered to the Trustee within 90 days from the
date the statement is delivered to the Administrator. Upon approval, the Trustee shall be
released and discharged as to all matters and items set forth in such statement as if such account
had been settled and allowed by a decree from a court of competent jurisdiction.
4.8 Pooled Funds
The assets of this Trust may be pooled in a fund for employee benefit plans maintained by the
Trustee for any other retirement plan or may be pooled with the assets of any other retirement
plan maintained by an adopting Employer, or both.
pg 7 LANCE\PARS\DOCUMENT\CURR_DOC\TRST4. WK4(22-AUG-94)
4.9 Delegation of Duties
The adopting Employer, or the Administrator, or both, may at any time retain the Trustee as their
agent to perform any act, keep any records or accounts and make any computations which are
required of the Employer, or the Administrator by this Trust or the Plan. The Trustee may be
compensated for such retention and such retention shall not be deemed to be contrary to this
Trust.
4.10 General_ Authority
Subject to the Fiduciary provisions of this Trust, the Fiduciary responsible for investment and
management of the Trust Assets shall have full power and authority to invest and reinvest all or
any portion of the Trust Fund in any investment permitted by the laws of the State in which the
Trustee administers this Trust, including, without limiting the generality of the terms thereof, the
power:
a) To invest in bonds, notes, mortgages, commercial paper, preferred stock and common
stock: other securities (including puts, calls and stock options), rights and obligations; any
real or personal property; insurance company contracts; shares or certificates of
participation issued by investment companies, investment trusts and mutual funds; grant
options to purchase any real or personal property upon such terms and conditions as
Trustee deems proper.
b) To agree with an insurer for the insurer's investment of any part or all of the trust fund or
for the investment in one or more of the insurer's separate Accounts or other funds, and to
deposit with such insurer all amounts so agreed upon.
c) To agree with an insurer for the conversion of any part or all of the trust fund annuities for
the benefit of the trust fund into annuities for the benefit of Participants upon their
retirement.
d) To retain any investment for such period of time as Fiduciary deems appropriate and to sell
the same, at either public or private sale, at such time or times and on such terms and
conditions as to credit or otherwise as the Fiduciary may deem appropriate.
e) To renew or extend the time of payment of any obligation due or becoming due.
f) To borrow money, with or without giving security; and to borrow on contracts.
g) To consent to or participate in any plan for the reorganization, consolidation or merger of
any corporation of which any security is held for the Trust; to pay any and all calls and
assessments imposed upon the owners of such securities as a condition of their
participation therein; and to consent to any contract, lease, mortgage, purchase or sale of
property by or between such corporation and any other corporation or person.
h) To compromise, arbitrate or otherwise adjust or settle claims in favor of or against the Trust
and to deliver or accept in either total or partial satisfaction of any indebtedness or other
obligation any property; and to continue to hold for such period of time as the Trustee
deems appropriate any property so received.
i) To vote any stock or other security held for the Trust and to execute and deliver any
proxies or powers of attorney to such person or persons as the Trustee deems proper,
granting to such person or persons such power and authority with relation to any property
or securities at any time held for the Trust, provided, however, that, irrespective of whether
the Trustee has been designated as the fiduciary responsible for investment and
management of the Trust Assets, the powers enumerated in this subparagraph 0) shall be
exercised by the Trustee unless the Trustee shall receive written notice to the contrary
from the Administrator or other Fiduciary responsible for directing the investments.
Pg 8 LANCEPARS�DOCUMENTTURR DOCARST4. WK4(22-AUG-94)
j) To sue or defend in connection with any and all securities or property at any time received
or held for the Trust, and all costs and attorney's fees in connection therewith shall be
charged against the Trust.
k) To lease real and/or personal property held for the Trust for such term or terms, and upon
such conditions, as the Trustee deems appropriate.
1) To cause any securities held for the Trustee to be registered and to carry any such
securities in the name of a nominee or nominees.
m) To hold in cash such portion of the Trust Fund as it may deem necessary for the ordinary
administration of the Trust and the disbursement of funds as directed from time to time by
the Administrator, and for the temporary investment of such cash pending the receipt
thereto, by depositing such cash immediately upon receipt in any type of interest bearing
account, including, but not limited to, bank savings accounts and/or Time Certificates of
Deposit maintained at any commercial and/or savings department of any bank (including
the Trustee if the Trustee also is a banking institution), subject to the rules and regulations
governing such deposits and without regard to the amount of such deposit.
n) To effect any agreement with an Insurer which the Trustee deems necessary to carry out
the purposes of this Trust and to pay all premiums on contracts held hereunder.
4.11 Distributions
a) All benefits payable pursuant to the Plan shall be paid out of the assets of this Trust by the
Trustee pursuant to the direction of the Administrator. The Trustee shall, from time to time,
upon the written direction of the Administrator, make distributions from the Trust Fund to or
for the benefit of such persons, in such manner, in such form(s), in such amounts and for
such purposes as may be specified in such directions. The Trustee at the direction of the
Administrator may make any distribution required to be made by it hereunder by delivering
to the Administrator or its authorized designee:
1) Its check payable to the person to whom such distribution is to be made, for delivery
to such person; or
2) Its check payable to an insurer for the benefit of such person, for delivery by such
insurer; or
3) Insurance Contracts held on the life of the Participant to whom or with respect to
whom the distribution is being made, for redelivery to the person to whom such
distribution is to be made; provided that any contract distributed shall be endorsed as
non -transferable.
b) In directing the Trustee to make distributions, the Administrator shall follow the provisions
of the Plan and shall not direct that any distribution be made either during the existence or
upon discontinuance of the Plan, which would cause any part of the Trust Fund to be used
for or diverted to purposes other than as provided in the Plan and this Trust. In no event
shall the Trustee have any responsibility respecting the application of such distributions,
nor for determining or inquiring into whether such distributions are in accordance with
the Plan.
pg. 9 LANCEU'ARSVDOCUMENT\CURR DOCA7'RST4 WK4(22-AUG-94)
ARTICLE V
FIDUCIARY RESPONSIBILITIES
5.1 More -Than One Fiduciary Capacity
Any one or more of the named or identified Fiduciaries with respect to this Trust and the Plan
may, to the extent required thereby or as directed by the Employer and/or Administrator pursuant
to this Trust and the Plan, serve in more than one Fiduciary capacity with respect to this Trust and
the Plan.
5.2 Fiduciary Discharge of Duties
Except as otherwise provided in the Code, each Fiduciary shall discharge such Fiduciary's duties
with respect to this Trust and the Plan solely in the interest of the Participants and Beneficiaries:
a) For the exclusive purpose of:
1) providing benefits to Participants and their Beneficiaries, and
2) defraying reasonable expenses of administering the Plan.
b) With the care, skill, prudence, and diligence under the circumstances then prevailing that a
prudent man acting in a like capacity and familiar with such matters would use in the
conduct of an enterprise of like character and with like aims.
c) By diversifying the investments of the Plan and this Trust so as to minimize the risk of large
losses, unless under the circumstances it is clearly prudent not to do so.
5.3 Prohibited Transactions
Except as hereinafter set forth, each Fiduciary with respect to this Trust shall not cause this Trust
to engage in any or all of the prohibited transactions set forth in Section 406(a) of the ERISA
retirement security act ("Act"). However, the foregoing limitations shall not apply with respect to
any conditional or unconditional exemption or variance granted under Section 408 of the Act
and/or Section 4975 of the Code (whichever shall be relevant) and/or under any regulation
promulgated thereunder and/or any proper interpretation of the Congressional Conference
Committee Joint Explanation of the Pension Reform Act of 1974 as applicable to governmental
plans and/or any administrative pronouncement so long as the same shall not be abrogated by
subsequent legislation, regulations, court decisions, rulings and procedures.
5.4 No Foreign Situs
Except as authorized by applicable Labor Regulations, no Fiduciary shall maintain the indicia of
ownership on any Trust Assets of the Plan or this Trust outside the jurisdiction of the district
courts of the United States.
5.5 Limitations on Fiduciary Responsibility
To the extent permitted by the Act:
a) No Fiduciary shall be liable with respect to a breach of fiduciary duty by any other fiduciary
if such breach was committed before such person became a fiduciary or after such person
ceased to be a fiduciary.
b) Each Fiduciary shall bear only such liability for breach of any fiduciary responsibility as is
imposed by the Act; and the inclusion in this Trust and the Plan of provisions comparable
to those in the Act and/or the Code is intended for the information and guidance of the
parties hereto and all fiduciaries and not to increase such fiduciaries' liabilities,
pg. 10 LANCE\PARS\DOCUMENT\CURR, DOCTRST4. WK4(22-AUG-94)
responsibilities, duties and obligations by reason of such inclusion, except as required by
the Act or the Code.
c) The Employer shall indemnify and hold harmless the members of the governing body, the
Administrator, the Trustee (except if Trustee is a bank, trust company or similar institution)
and any other persons to whom any fiduciary responsibility with respect to this Trust and
the Plan is allocated or delegated from, and against any and all liabilities, costs and
expenses incurred by such persons as a result of any act, or omission to act, in connection
with the performance of such person' duties, responsibilities and obligations under this
Trust, the plan and under the Act, other than such liabilities, costs and expenses as may
result from the negligence, gross negligence, bad faith, willful misconduct and/or criminal
acts of such persons.
5.6 Indemnification of Trustee
The adopting Employer agrees to indemnify the Trustee against, and to hold the Trustee harmless
from, all liabilities and claims (including reasonable a«orney's fees and expenses in defending
against such liabilities and claims) against the Trustee as a result of any breach of fiduciary
responsibility by a Fiduciary other than the Trustee unless the Trustee participates knowingly in
such breach, knowingly undertakes to conceal such breach, has actual knowledge of such
breach and fails to take reasonable remedial action to remedy such breach or, through its gross
negligence in performing its own specific fiduciary responsibilities, has enabled such other
fiduciary to commit a breach of the latter's fiduciary responsibilities.
5.7 Indemnification of Employer
The Trustee agrees to indemnify the Employer against, and to hold the Employer harmless from,
all liabilities and claims (including reasonable attorneys' fees and expenses in defending against
such liabilities and claims) against the Employer as a result of any breach of fiduciary responsibility
by a fiduciary other than the Trustee where the Trustee participates knowingly in such a breach,
knowingly undertakes to conceal such breach, has actual knowledge of such breach and fails to
take reasonable action to remedy such breach, or through its negligence in performing its own
specific fiduciary responsibilities has enabled such other fiduciary to commit a breach of the
latter's fiduciary responsibilities.
P6. 11 LANCE\PARS\DOCUMENT\CURR_ DOC\TRST4. WK4(22-AUG-94)
ARTICLE VI
AMENDMENT, TERMINATION & MERGER
6.1 Permanence
It is the expectation of the Employer that this Trust, and the permanency of contributions
hereunder, will be continued indefinitely, but continuance of this Trust and of the Plan is not
assumed as a contractual obligation of the Employer. This Trust may be amended or terminated
only as provided in this Trust.
6.2 Amendments
a) A two-thirds majority of the Employers acting through the Administrators shall have the
right to amend this Trust from time to time, and to similarly amend or cancel any
amendments. A copy of all amendments shall be delivered to the Trustee and
Administrators promptly as each is made.
b) Such amendments shall be set forth in an instrument in writing executed by the amending
party and the Trustee. Any amendment may be current, retroactive or prospective,
provided, however, that no amendment shall:
1) Cause any of the assets of this Trust to be used for or diverted to purposes other than
for the exclusive benefit of Participants, retired Participants or their joint annuitants
and their Beneficiaries who have an interest in this Trust or for the purpose of
defraying the reasonable expenses of administering this Trust.
2) Have any retroactive effect so as to reduce the Benefits of any Participant under this
Trust to the date the amendment is adopted, except that such changes may be made
as may be required to permit this Trust to meet the requirements of the Act and Code.
3) Create or effect any discrimination prohibited by the Code in favor of Participants who
are highly compensated, who are officers of the Employer.
4) Change or modify the duties, powers or liabilities of the Trustee hereunder without its
consent.
5) Permit the assets of this Trust to be used for the benefit of any other Plan of the
Employer unless the Employer agrees to such use.
6.3 Termination
The Employers shall have the right to terminate this Trust by a unanimous vote of all members
acting through the Administrators and by delivering written notice of termination to Trustee. A
termination by the Employer of its Plan shall not, in itself, effect a termination of this Trust. Upon
any termination of the Plan, the Trust Fund shall be distributed by the Trustee as and when
directed by the Administrator. From and after the date of such termination of the Plan and until
final distribution of the Trust Fund, the Trustee shall continue to have all the powers provided
pK, 12 LANCE\PARSVDOCUMENTVCURR_DOCATRST4. WK4(22-AUG-94)
herein as are necessary or expedient for the orderly liquidation and distribution of the Trust
Fund and this Trust shall continue until all Participants' Accounts have been completely
distributed to or for the benefit of the Participants or their Beneficiaries in accordance with the
Plan.
6.4 Fund Recovery
Except as hereinafter provided, the assets of the Plan and this Trust shall never inure to the
benefit of the Employer and the same shall be held for the exclusive purposes of providing
benefits to Participants in this Trust and their beneficiaries and defraying reasonable expenses
of administering this Trust. The sole exception to the foregoing is as follows:
a) Mistake of Fact
In the case of a contribution which is made by the Employer by a mistake of fact, that
portion of the contribution relating to the mistake of fact (exclusive of any earnings or less
any trust losses attributable thereto) may be returned to the Employer, provided such
return occurs within one (1) year after discovery by the Employer of the mistake.
If any repayment is payable to the Employer, then, as a condition to such repayment, and only if
requested by Trustee, the Employer shall execute, acknowledge and deliver to the Trustee its
written undertaking, in form satisfactory to the Trustee, to indemnify, defend and hold the Trustee
harmless from all claims, actions, demands or liabilities arising in connection with such repayment.
6.5 Transfers from Other Qualified Plans
Notwithstanding any other provision hereof, there may be transferred to the Trustee, upon
direction of the Administrator, all or any of the assets held (whether by a Trustee, custodian or
otherwise) on behalf of any other plan which satisfied the applicable requirements of Section 401
of the Code, and which is maintained for the benefit of any persons who are or are about to
become Participants in the Employer's Plan.
pg. 13 LANCEVPARSV1)0CUMENTVCURR_DOCATRSI'4 WK4(22-AUG-94)
ARTICLE VII
MISCELLANEOUS PROVISIONS
7.1 Third Persons
All persons dealing with the Trustee are released from inquiring into the decisions or authority of
the Trustee and from seeing to the application of any securities or other property paid or delivered
to the Trustee.
7.2 Nonalienation
The balances in a Participant's Employer Contribution Account may not be assigned or alienated,
except that he may voluntarily and revocably assign up to ten percent (10%) of the balances in
his Accounts once he is receiving distribution, so long as the assignment or alienation is not for
the purpose of defraying Plan administration costs. For purposes of this Section, a garnishment
or levy is not considered to be a voluntary assignment, and a loan to the Participant, or his
Beneficiary in the event of the Participant's death, shall not be treated as an assignment or
alienation if such loan is secured by the Participant's nonforfeitable Employer Contribution
Account, and is not a prohibited transaction within the meaning of Section 4975 of the Code.
7.3 Saving Clause
In the event any provision of this Trust is held illegal or invalid for any reason, said illegality or
invalidity shall not affect the remaining parts of the Trust Agreement, but this instrument shall be
construed and enforced as if said provision had never been included.
7.4 Applicable _Law
This Trust shall be construed, administered and governed under the Act and the Code; and to the
extent any of the provisions of this Trust and/or the Plan are inconsistent with the Act and/or the
Code, the provisions of the Act and/or Code shall control. This Trust shall be construed,
administered and governed by the laws of the State in which the Trustee administers this Trust,
but only to the extent the laws of such State have not been superseded, or are not inconsistent
with the Act and the Code. In the event, however, that any provision is susceptible to more than
one interpretation, such interpretation shall be given thereto as is consistent with this Trust and
the Plan being a qualified retirement Trust and Plan within the meaning of the Act and the Code.
7.5 Joinder of Parties
In any action or other judicial proceedings affecting this Trust, it shall be necessary to join as
parties only the Trustee, the Administrator, and the Employer. No Participant or other persons
having any interest in this Trust shall be entitled to any Notice or service of process unless
otherwise required by law. Any judgment entered in such a proceeding or action shall be binding
on all persons claiming under this Trust, provided, however, that nothing in this Trust shall be
construed as to deprive a Participant of such Participant's right to seek adjudication of such
Participant's rights under the Act.
pg_ 14 LANCE\PARSVD0CUMENTACURR_DOCATRST4 WK4(22-AUG-94)
7.6 Employment of Counsel
The Trustee may consult with legal counsel (who may be counsel for the Trustee or Employer).
7.7 Gender and Number
Words used in the masculine, feminine or neuter gender shall each be deemed to refer to the other
whenever the context so requires; and words used in the singular or plural number shall each be
deemed to refer to the other whenever the context so requires.
7.8 Headings
Headings used in this Trust are inserted for convenience of reference only and any conflict between
such headings and the text shall be resolved in favor of the text.
7.9 Counterparts
This Trust may be executed in an original and any number of counterparts by the Employer and the
Trustee, each of which shall be deemed to be an original of the one and the same instrument.
IN WITNESS WHEREOF, two-thirds of the participating employers as required by Section 6.2, and Trustee
have executed this Trust by their duly authorized agents on this 19 day of October,-' 1 994
ACKNOWLEDGED AND ACCEPTED this 19 day of October, 1994
The Bank of California
TRUSTEE
BG��"I
Y
hn DiMalanta, Senior Vice President
By: �\J�j
Ilona (Lonnie) Gartner, Vice Pres., Trust Officer
By:
Phase II Systems
TRUST ADMINISTRATOR
M.C. Jonbon, President
pg. 15 LANCE\PARS\DOCUMENTTCURR DOC\TRST4 WK4(22-AUG-94)