CCR2002051COMMON COUNCIL -CITY OF MUSKEG0
RESOLUTION #51-2002
RESOLUTION AMENDING THE CITY OF MUSKEG0
EMPLOYEE DEFERRED COMPENSATION PLAN
(Equitable Life Assurance Society of the United States)
WHEREAS, The Common Council adopted Resolution #174-82 entitled “Resolution
Confirming the City of Muskego Employee Deferred Compensation Plan” on September 14,
1982; and amended the Plan on November 12, 1991, and
WHEREAS, The attached Amendment of the Plan reflects certain provisions of the
Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) which have been
recommended for adoption by representatives of The Equitable; and
WHEREAS, The Finance Committee has reviewed the Amendment and recommended
approval subject to review by the City Attorney; and
WHEREAS, Atty. Alan Levy of Lindner & Marsack has reviewed the Amendment and
recommended adoption.
NOW, THEREFORE, BE IT RESOLVED, That the Common Council of the City of Muskego,
upon the recommendation of the Finance Committee, does hereby approve the Amendment
of the City of Muskego Employee Deferred Compensation Plan as attached.
DATED THIS 26th DAY OF Februarv 2002.
SPONSORED BY:
FINANCE COMMITTEE
Ald. Mark Slocomb
Ald. David Sanders
Ald. Nancy Salentine
This is to certify that this is a true and accurate copy of Resolution #51-2002 which was
adopted by the Common Council of the City of Muskego.
0 0202/jm
? C k-Treasurer
1.
2.
3.
4.
5.
Amendment of the City of Muskego Employee Deferred Compensation Plan
(Equitable Life Assurance Society of the United States)
Adoption and effective date of amendment.
This Amendment of the Plan is adopted to reflect certain
provisions of the Economic Growth and Tax Relief Reconciliation
Act of 2001, P.L. No. 107-16 (EGTRRA”). This amendment is
intended as good faith compliance with the requirements of
EGTRRA and guidance issued thereunder. Except as otherwise
provided, this Amendment shall be effective as of the first day of
the first plan year beginning after December 31,2001.
Supersession of inconsistent provisions.
This Amendment shall supersede the provisions of the Plan
to the extent those provisions are inconsistent with the provisions of
this Amendment.
SECTION 3. LIMITATIONS ON CONTRIBUTIONS
No participant shall be permitted to have deferrals made
under this Plan in excess of the dollar limitation contained in
Section 457 of the Code in effect for such taxable year
SECTION 4. QUALIFIED DOMESTIC RELATIONS ORDERS
No benefit or interest under this Plan will be subject to
assignment or alienation, either voluntarily or involuntarily. The
preceding sentence also applies to the creation, assignment, or
recognition of a right to any benefit payable with respect to a
Participant pursuant to a domestic relations order, unless such
order is determined to be a Qualified Domestic Relations Order,
as defined in Section 414 (p) of the Code entered after January 1,
2002.
SECTION 5. DIRECT ROLLOVERS TO OTHER ELIGIBLE
RETIREMENT PLANS
Notwithstanding anything to the contrary in this Plan and
effective for distributions made after December 31, 2001. ”direct
rollovers” of “eligible rollover distributions” may be made to an
“eligible retirement plan” as those terms are defined in the Code
after its amendment by EGTRRA.
Amendment - Employee Deferred Compensation Plan Page 2
February, 2002
6.
An eligible retirement plan includes a qualified plan under Section
401 of the Code, an individual retirement arrangement under
Section 408 of the Code, an annuity contract described in section
403(b) of the Code, another 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. 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 Relations Order, as defined in Section 414(p) of
the Code. Any amount that is distributed on account of hardship
shall not be an eligible rollover distribution and the distributee may
not elect to have any portion of such a distribution paid directly to
an eligible retirement plan.
SECTION 6. ROLLOVERS FROM OTHER ELIGIBLE
RETIREMENT PLANS
The plan will accept, and separately account for, direct
rollovers, andlor rollover contributions made by Participants, of
distributions made after December 31,2001, from the types of
plans specified herein.
Direct Rollovers:
The plan will accept a direct rollover of an eligible rollover
distribution from:
a qualified plan described in Section 401(a) or 403(a) of the Code,
excluding after-tax employee contributions.
an annuity contract described in Section 403(b) of the Code,
excluding after-tax employee contributions.
another 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.
Participant Rollover Contributions from Other Plans:
The plan will accept contribution of an eligible rollover distribution
from a Participant from:
a qualified plan described in Section 401(a) of the Code.
Amendment - Employee Deferred Compensation Plan Page 3
February, 2002
an annuity contract described in Section 403(b) of the Code.
another 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.
Participant Rollover Contributions from IRAs:
The plan will accept a Participant rollover contribution of the
portion of a distribution from an individual retirement account or
annuity described in Section 408(a) or 408(b) of the Code that is
eligible to be rolled over and would otherwise be includible in gross
income.
Effective Date of Direct Rollover and Participant Rollover
Contribution Provisions -- January 1, 2002.
CityHalIClerkTreasurer: PEDCam020402
LINDNER&MARSACK, S.C.
Anornevc at I.aw
Lknnir G. Lindner
Gary A. Marrack
Donald J. Cairns
Alan M. Lcvy
John E. Dma
Roben E. Schreiber, Jr.
wind WiSbom
Ltra M. Bcrgenen John R. Jkubiak
Jonlhan T. Swain Douglas M. feldman Timothy J. Schumm
Jams R. Scan
Thomas W. Mackenzie
Laurie A. Pelcnen Belhany C. McCurdy
David C. McKone
Febmary 2 1,2002
Ms. Jean K. Marenda, CMC
Clerk-Treasurer
City of Muskego
W 182 S8200 Racine Avenue
P.O. Box 149
Muskego, WI 53 150
Re: Deferred Compensation Plan
Dear Ms. Marenda:
Jon Swain asked me to review your February 19, 2002 inquiry about EGTRRA
amendments to the City of Muskego’s Deferred Compensation Plan.
We would agree with the proposal by The Equitable. The suggested interim amendments
comply with and implement the new EGTRRA options as generously as those topics allow. The
Internal Revenue Service has announced it will accept these changes while it prepares and
published it own regulations. With IRS saying it does not expect to accept and pass upon any
plan’s EGTRRA amendments for at least four years, the employer’s only choices are interim
amendments like these, or substantial delay in capitalizing on these tax advantages. We see no
reason to accept the delay.
We find the proposed interim amendments technically acceptable and administratively
optimal for maximization of the new tax law in favor of employees and their beneficiaries. We
recommend this adoption.
Should there be any further questions about any of this, please feel free to contact us at
any time.
Very truly yours,
cc: Jon T Swain
AMLImf
411 East Wisconsin Avenue, Suite 1000 -Milwaukee, WI 53202 414-273-3910 Fax 414-2736522
w.lindner-marsack.com