BVFD Service Award ProgramBLAIR FIRE AND RESCUE VOLUNTEERS'
SERVICE AWARD PROGRAM
Introduction and Parties
The Blair Fire and Rescue Volunteers' Service Award Program (the "Plan"),
established as of October 1, 2008, by and between the City of Blair (hereinafter referred
to as the "City") on behalf of the Blair Fire and Rescue Volunteers, a Nebraska non-
profit corporation, and the City Treasurer of the City of Blair (hereinafter referred to as
the "Trustee"), is hereby restated to incorporate all amendments to the Plan that have
been adopted through October 1, 2013.
WITNESSETH:
ARTICLE 1
PURPOSE
1.1 Establishment of Plan. The City of Blair established this Plan effective
October 1, 2008. The terms of this amendment and restatement of the Plan and Trust
are effective October 1, 2013.
1.2 Purpose. The primary purpose of the Plan is to provide for the payment of
service award benefits which reward the length of service of certain volunteer
firefighters of the Blair Fire and Rescue Volunteers. The Plan and Trust are designed to
comply with the Volunteer Emergency Responders Recruitment and Retention Act as
set forth in the State of Nebraska Statutes, and are intended to meet the requirements
of Section 457(e)(11) of the Internal Revenue Code of 1986, as the same may be
amended, as said section applies to length of service award plans.
1.3 Exclusive Benefit. This Plan and Trust are established and shall be
maintained for the sole and exclusive benefit of those Participants who are eligible to
participate under the Plan and for the benefit of Beneficiaries of such Participants in the
event of their death. Notwithstanding any provision in the Plan to the contrary, the Plan
and Trust and the assets of the Plan shall be subject to such restrictions and claims as
may from time to time be established under the Plan or Trust, as the same may be
amended, and the provisions of the Volunteer Emergency Responders Recruitment and
Retention Act as the same from time to time may be amended. To the extent the
Volunteer Emergency Responders Recruitment and Retention Act permits or requires
the plan assets to 'be subject to the City's creditors, the City shall have the right to
revoke the Trust provided hereunder.
ARTICLE II
DEFINITIONS AND CONSTRUCTION
The following words and phrases when used in this Plan, unless the context
clearly indicates otherwise, shall have the following meanings:
2.1 "Annual Account." Annual Account means a separate account established
under the Plan for each Year of Service in which the Plan is maintained and to which is
credited all funds, from whatever source, furnished for the purpose of providing Plan
benefits to Participants for each such Year of Service.
2.2 "Beneficiary." Beneficiary means the person or persons designated by the
Participant, in writing and filed with the City before the Participant's death who shall
receive any benefits payable under the Plan in the event of the Participant's death.
2.3 "Board of Directors." Board of Directors means the City Council of the
City of Blair, Nebraska.
2.4 "Certification Administrator." Certification Administrator means a member
of the Volunteer Department designated by the Volunteer Department, who shall be
confirmed and approved by the Board of Directors, and whose duties are set forth in
Article VII.
2.5 "City." City means the City of Blair, a political subdivision of the State of
Nebraska.
2.6 "Participant." Participant means a Volunteer Emergency Responder
whose name is placed on the Certification List for a Year of Service in accordance with
Article III, and who continues to have rights or contingent rights to benefits payable
under this Plan.
2.7 "Trust Fund." Trust Fund means the trust fund established hereunder to
provide for the payment of the benefits specified in the Plan.
2.8 "Vested." Vested means the nonforfeitable portion of a Participant's
interest in the Plan.
2.9 "Volunteer Department." Volunteer Department means the Blair Fire and
Rescue Volunteers.
2.10 "Volunteer Emergency Responders Recruitment and Retention Act."
Volunteer Emergency Responders Recruitment and Retention Act means the Act set
forth in Sections 35-1301 to 35-1330 of the Nebraska Revised Statutes.
2.11 "Volunteer Emergency Responder." Volunteer Emergency Responder
means any person who has been approved by the duly constituted authority in control of
the Blair Fire and Rescue Volunteers as a volunteer member of the Volunteer
Department who is performing service as a firefighter, as part of a rescue squad, or both
in the protection of life or property from fire or other emergency, accident, or calamity in
connection with which the services of the Volunteer Department are required.
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A Volunteer Emergency Responder must be a person who meets the
requirements necessary to qualify as a bona fide volunteer as described in Internal
Revenue Code section 457(e)(11)(B)(i) and who, on behalf of and at the request or with
the permission of the City and/or Volunteer Department, engages in activities related to
fire protection, fire suppression, or emergency response for the purpose of protecting
human life, health, or property. Any person who is employed as a paid member of the
Volunteer Department and who receives retirement benefits in connection with such
employment shall not be eligible to participate in the Plan.
2.12 "Year of Vesting Service." Year of Vesting Service means a Year of
Service during which a Volunteer Emergency Responder is credited with at least fifty
(50) points during such Year of Service in accordance with Section 3.1. In determining
whether a Participant has completed a Year of Vesting Service, points shall be awarded
to Volunteer Emergency Responders in accordance with Sections 3.1(a) through (g). A
Participant's total Years of Vesting Service shall be determined by aggregating all
periods of service performed by the Participant as a Volunteer Emergency Responder.
2.13 "Year of Service." Year of Service means the twelve (12) month period
beginning on each October 1 and ending on each September 30.
ARTICLE III
PARTICIPATION IN PLAN
3.1 Eligibility. A Volunteer Emergency Responder will become a Participant
for each Year of Service in which such Volunteer Emergency Responder's name is
placed on the Certification List and approved by the Board of Directors or the Volunteer
Department for such Year of Service. A Volunteer Emergency Responder's name shall
be placed on the Certification List for a Year of Service if such Volunteer Emergency
Responder is credited with at least fifty (50) points during such Year of Service as
determined by the Certification Administrator. Points shall be awarded to Volunteer
Emergency Responders in accordance with the following:
(a) A fixed amount of twenty-five (25) points shall be awarded to a Volunteer
Emergency Responder for responding to ten percent (10%) or more of the
emergency response calls of the Volunteer Department which are (1) dispatched
from his or her assigned station or company during a Year of Service and (2)
relevant to the appropriate duty category of the person. An emergency response
call shall mean any dispatch involving an emergency activity that a Volunteer
Emergency Responder is directed to do by the chief of the Volunteer
Department, the chief of the Volunteer Department's ambulance service, or
persons authorized to act for the chiefs. No points shall be awarded for
responding to less than ten percent (10%) of the emergency response calls.
(b) For participation in training courses, a maximum total of not more than
twenty-five (25) points may be awarded on the following basis:
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(1) For courses under twenty (20) hours duration: one (1) point shall
be awarded per two hours of training, with a maximum of five (5)
points awarded per course;
(2) For courses of between twenty (20) hours and forty (40) hours
duration: five (5) points shall be awarded, plus one (1) point
awarded for each hour of training after the first twenty (20) hours,
with a maximum of ten (10) points awarded per course; and
(3) For courses over forty (40) hours duration: fifteen (15) points shall
be awarded per course.
(c) Drills shall mean regular monthly drills used for instructional and
educational purposes, as well as mock emergency response exercises to
evaluate the efficiency or performance by the personnel of a Volunteer
Department. Each drill shall last at least two (2) hours. One (1) point shall be
awarded per drill. For participation in drills, a maximum total of not more than
twenty (20) points shall be awarded.
(d) For attendance at an official meeting of the Volunteer Department or
mutual aid organization, one (1) point shall be awarded per meeting up to a
maximum total of not more than ten (10) points.
(e) A fixed award of ten (10) points shall be awarded for completion of a term
in one of the following elected or appointed positions: (1) an elected or
appointed position defined in the Volunteer Department's constitution or bylaws;
(2) an elected or appointed position of a mutual aid organization; or (3) an
elected office of the Nebraska State Volunteer Emergency Responder's
Association or other organized associations dealing with emergency response
services in Nebraska; provided, however, no more than ten (10) points shall be
awarded under this Section 3.1(e) for any Year of Service.
(f) For participation in activities of fire prevention communicated to public,
open house, speaking engagements on behalf of the Volunteer Department,
presenting fire or rescue equipment at a parade or other public event, attendance
at the Nebraska State Volunteer Emergency Responder's Association
Convention, attendance at a City meeting on behalf of the Volunteer Department,
or other activities related to emergency services not covered in this subsection,
one (1) point shall be awarded per activity, but no more than one (1) point shall
be awarded per day, up to a maximum total of not more than ten (10) points.
(g) Activities which may qualify a person to receive points in more than one of
the categories described in Sections 3.1(a) through (f) shall only be credited in
one category as determined by the Certification Administrator.
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ARTICLE IV
CONTRIBUTIONS AND ALLOCATIONS
4.1 Establishment of Annual Accounts. The City shall establish an Annual
Account for each Year of Service in which the Plan is in operation. Contributions made
to the Plan for a Year of Service shall be credited to the Annual Account established for
such Year of Service.
4.2 Establishment of Participants' Annual Accounts. The Trustee shall create
and maintain a separate account in the name of each Participant for each Year of
Service in which a Participant satisfies the requirements of Section 3.1, and such
account shall be known as the Participant's Annual Account for such Year of Service.
Each such Participant's Annual Account shall be adjusted as of the last day of each
Year of Service or at more frequent valuation dates as may be established by the City.
The Trustee shall not be required to maintain separate investments for any account.
4.3 Contributions to Annual Account. Subject to Section 4.6, the City shall
appropriate for the Annual Account for each Year of Service in which the Plan is in
existence an amount to be determined by the Board of Directors. To the extent funds
are available, the total amount of all contributions made to an Annual Account for any
Year of Service shall not be less than $100 multiplied by the number of Participants
listed on the Certification List for the Year of Service covered by such Annual Account;
and, the amount of contributions allocated to a Participant's Annual Account for any
Year of Service shall not be less than $100, plus earnings thereon.
4.4 Allocation to Participant's Accounts. The contribution made to an Annual
Account for a Year of Service shall be divided equally, and allocated equally, to the
Participant Annual Accounts of those Participants who are on the Certification List for
such Year of Service.
4.5 Adjustment of Participant Annual Accounts. As of the last day of each
Year of Service or at more frequent valuation dates as may be established by the City,
the Trust Fund and each Participant's Annual Account shall be adjusted to fair market
value to reflect income and losses, and depreciation and appreciation of the Trust
assets directly in proportion to the net credit balances of each Participant's Annual
Account as of such time; provided, however, each Participant's Annual Account, as of
such valuation date, shall be further adjusted by reducing such Participant's Annual
Account for any forfeitures arising under this Plan, and for any distributions made from
such Participant's Annual Accounts from such immediately preceding valuation date.
The allocable net income, gain or loss to each Participant's Annual Accounts is the net
income (or net loss), including the increase or decrease in the fair market value of
assets credited to such Participant's Annual Accounts, since the last valuation date.
Notwithstanding the foregoing, the City and Trustee may agree in writing to revise rules
for the adjustment and valuation of the Trust Fund and the Participant's Annual
Accounts.
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4.6 Limitations on Allocations to Annual Account. The total amount of all
contributions made to an Annual Account for any Year of Service shall not exceed
$3,000, as adjusted, from time to time by state and federal law, multiplied by the
number of Participants listed on the Certification List for the Year of Service covered by
such Annual Account. The amount of contributions allocated to a Participant's Annual
Account for any Year of Service shall not exceed $3,000, as adjusted, from time to time
by state and federal law, plus earnings thereon.
4.7 Limitations on Liability. Neither the City nor the Volunteer Department
shall incur any obligation or liability with regard to contributions made to an Annual
Account for any Year of Service beyond the amount of contributions allocated and
actually made to such Annual Account.
ARTICLE V
VESTED RIGHTS OF PARTICIPANTS
5.1 Participant's Vested Rights. The allocation of a portion of the contribution
to a Participant's Annual Account shall not give any Participant any Vested right to all or
any portion of the amounts so allocated. Except as hereinafter specifically provided, the
Vested right of a Participant to amounts allocated to each of his Participant Annual
Accounts from contributions, adjusted by subsequent income, losses, appreciation and
depreciation thereof, shall depend solely on the total Years of Vesting Service
completed by the Volunteer Emergency Responder, according to the following
schedules.
Prior to October 1, 2013:
Years of Service
Less than 3 years
3 years
4 years
5 years or more
Beginning on and after October 1, 2013:
Years of Service
Less than 3 years
3 years
Vested Percentage
0%
50%
75%
100%
Vested Percentage
0%
100%
Upon becoming 100% vested in accordance with the applicable above schedule,
the Participant shall have a nonforfeitable interest in his Participant's Annual Accounts
established for each Year of Service in which such Participant is listed on the
Certification List each such Year of Service. Such Participant's Vested interest shall be
a proportionate equal share with all other Participants listed on the Certification List for a
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Year of Service in the principal amount of all contributions deposited into the Annual
Account for such Year of Service and all income derived therefrom.
Notwithstanding the foregoing provisions, effective October 1, 2013, all amounts
allocated to a Participant's Annual Accounts, adjusted by subsequent income, losses,
appreciation, and depreciation thereof shall become fully vested and nonforfeitable
upon the date that a Participant attains age sixty-five (65) if such Participant is then on
the Volunteer Department's Certification List.
5.2 Failure to Complete a Year of Service Due to Military Service or Disability.
If a Volunteer Emergency Responder fails to qualify as a Participant for any Year of
Service, and such failure was due to a period during the Year of Service in the Armed
Forces of the United States upon active duty, or to an injury or disability incurred by the
Volunteer Emergency Responder and directly related to the Volunteer Emergency
Responder's duties or activities as a Volunteer Emergency Responder, then for
purposes of determining the Participant's vested right to his Participant Annual Account
for such Year of Service, such Volunteer Emergency Responder shall be deemed to
have completed a Year of Vesting Service for such Year of Service.
5.3 Death or Termination of Plan. Notwithstanding the provisions of Section
5.1, all amounts credited to a Participant's Annual Accounts, adjusted by subsequent
income, losses, appreciation, and depreciation thereof, shall become fully vested and
nonforfeitable upon such Participant's death if he or she dies in the course of his or her
services as a Volunteer Emergency Responder or as a result of injuries directly related
to his or her duties or activities as a Volunteer Emergency Responder, or upon total
discontinuance of contributions to the Plan or termination of the Plan for any reason.
5.4 Permanent Disability. Notwithstanding the provisions of Section 5.1, if a
Participant suffers a permanent disability resulting from an injury incurred by the
Participant and directly related to the Participant's duties or activities as a Volunteer
Emergency Responder which disqualifies the Participant from further service as a
Volunteer Emergency Responder, then at the time the disability is confirmed and
certified to the City, the Participant shall become fully vested in each of the Participant's
Annual Accounts for all Years of Service in which such Participant is listed on the
Certification List.
5.5 Forfeitures. Forfeitures of the non -vested portion of Participant's Annual
Accounts shall be held as an unallocated portion of the Trust Fund and will be credited
with a proportional share of the total investment earnings or loss and depreciation of the
Trust Fund. Such unallocated portion of the Trust Fund shall be used to finance the
cost of operating the Plan or reduce the City's current or future contributions to the Plan.
A Participant who fails to become fully vested in his Plan benefits shall forfeit the non -
vested portion of his Plan benefits upon the earlier of:
(a) the Participant's death;
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(b) the later of the date set forth in Section 6.1(a) or Section 6.1(b); or
(c) the date that the Participant is no longer a Volunteer Emergency
Responder by reason of resignation, disqualification, or other termination
as a volunteer member of the Volunteer Department.
ARTICLE VI
PAYMENT OF BENEFITS
6.1 Service Award Benefit Payments Generally. A Participant's Vested
benefits provided under the Plan shall be paid, or begin to be paid, to such Participant
on his or her Distribution Date. A Participant's Distribution Date is the later of:
(a) the date the Participant attains the age of sixty-five (65); or
(b) the first day of the first Year of Service after the first Year of Service in
which the Participant was not on the Volunteer Department's Certification List.
6.2 Payment of Benefits Upon Participant's Death. A Participant's Beneficiary
shall be entitled to a payment of benefits under the Plan if the Participant dies:
(a) in the course of his active service as a Volunteer Emergency Responder;
(b) as the result of injuries directly related to his duties or activities as a
Volunteer Emergency Responder; or
(c) before attaining the age of sixty-five (65), provided that such Participant
would have been entitled to receive a distribution had he lived until age sixty-five
(65).
Payment of benefits under this Section 6.2 will be made to the Participant's
Beneficiary as soon as practicable following the Participant's death.
6.3 Death Benefit After Benefits Have Commenced. If a Participant dies after
he has started to receive benefits under the Plan under Section 6.4(b), then upon the
Participant's death, the Participant's Beneficiary will receive the remaining balance, if
any, of the Participant's Annual Accounts in any form permitted under Section 6.4.
6.4 Form of Benefit Payment. A Participant or Beneficiary who is entitled to a
distribution under the Plan may elect to receive benefits in one of the following forms:
(a) a lump sum cash payment; or
(b) semiannual or annual cash payments for a period not to exceed the life
expectancy of the Participant or Beneficiary and continuing until the Participant's
Annual Accounts are exhausted.
1.1
An election to receive a distribution in one of the forms described above must be
made before the Participant or Beneficiary, as the case may be, becomes entitled to a
distribution.
6.5 Designation of Beneficiary.
(a) By completing and delivering to the City a written form provided for this
purpose, a Participant may designate a Beneficiary or Beneficiaries and
contingent Beneficiary or Beneficiaries to receive death benefits, if any, payable
under the Plan. The designation of a Beneficiary or contingent Beneficiary may
be changed at any time. A designation or change in Beneficiary or contingent
Beneficiary will be effective only if duly executed by the Participant and received
by the City prior to the Participant's death.
(b) If no Beneficiary shall have been designated by the Participant, or, if no
designated Beneficiary shall have survived the Participant, the death benefit, if
any, shall be paid to the deceased Participant's estate in a lump sum payment.
6.6 Distributions to Comply with Act. In all events, the time and method of
distribution of a Participant's or Beneficiary's benefits under this Plan shall be in
accordance with the Volunteer Emergency Responders Recruitment and Retention Act.
6.7 Withholding of Taxes. Distributions from the Plan shall be subject to all
tax payment and withholding requirements of federal, state and local tax laws, and the
City shall withhold from the Participant's Annual Account and remit to the proper
governmental agency all income, FICA, or other taxes which are required to be withheld
from such distribution.
ARTICLE VII
ADMINISTRATION
7.1 Appointment of Certification Administrator. The Volunteer Department
shall designate a member of the Volunteer Department to serve as the Certification
Administrator. The designation of such member as the Certification Administrator shall
be confirmed and approved by the Board of Directors.
7.2 Specific Duties of the Certification Administrator. In addition to those
duties provided elsewhere under this Plan, it shall be the duty of the Certification
Administrator to:
(a) keep and maintain records on the activities of all Volunteer Emergency
Responders and Participants and award points for the activities as set forth in
Section 3.1;
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(b) provide written notice to each Volunteer Emergency Responder and
Participant of the total points he or she has accumulated during each six (6)
month period (in accordance with Section 3.1) in which the Plan is in operation;
(c) provide a written report to the Board of Directors, no later than thirty (30)
days following each Year of Service during which the Plan is in existence,
specifying the name of each Volunteer Emergency Responder, the number of
points accumulated by each Volunteer Emergency Responder during the Year of
Service, and the names of those Volunteer Emergency Responders who have
qualified as Participants for such Year of Service;
(d) at the time of the filing of the report described in Section 7.2(c), provide to
each Volunteer Emergency Responder whose name does not appear on the
Certification List for such Year of Service, a written notice of such fact by first-
class United States mail, postage prepaid; and
(e) comply with any other requirements set forth in the Volunteer Emergency
Responders Recruitment and Retention Act, as the same may be amended, from
time to time.
7.3 General Powers and Duties of the City. The City shall administer the
Plan, shall supervise the general operation of the Plan, and shall be responsible for the
general administration of the Plan except for such specific administrative functions
which are, or which may be, delegated by ordinance or statute. The City shall have
such general duties and discretionary powers as may be necessary or appropriate to
discharge their specific duties and to administer the Plan, including, but not limited to,
the following:
(a) to determine eligibility;
(b) to determine all questions of fact as to age, Years of Service, disability,
contribution amounts, and similar items based upon Plan records;
(c) to adopt rules of procedure and regulations necessary or appropriate for
the proper and efficient administration of the Plan;
(d) to determine all questions arising in the interpretation of the Plan,
including the amount and timing of benefit payments from the Plan and all such
determinations shall be conclusive and binding on all persons to the extent
provided by law;
(e) to correct any underpaid or overpaid benefit from the Plan, including the
power to order and offset or adjustment of future benefit payments to recover any
such overpayment; and
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(f) to do all things necessary or proper pursuant to the duty of administrating
the Plan and supervising its operations.
All administrative powers necessary or appropriate to operate the Plan shall be
vested exclusively with the City unless otherwise specifically provided by this Plan or
delegated by the City to a third party pursuant to Section 7.4.
7.4 Administrative Services Agreement. The City may enter into an
administrative services agreement with an appropriate organization authorized to
conduct business in Nebraska to administer the Plan; provided, however, no such
agreement shall be entered into unless it will result in administrative economy and will
be in the best interests of the City, the Volunteer Department, and the Participants. In
the event that the City enters into an administrative services agreement under this
Section 7.4, such agreement shall provide:
(a) that the organization shall make all disbursements under the contract or
contracts issued by it, such disbursements to be made in such manner and
amounts as directed by the City in conducting the service award benefit program,
whether on account of disability, death, the termination of a program, or the
attainment of the appropriate age by a qualifying participant;
(b) that the organization shall include with each disbursement a statement
showing the gross payment, any taxes withheld, and the net amount paid and an
annual statement of account;
(c) that the organization shall furnish to the City a statement of all
disbursements and withholdings as stipulated in the agreement on at least an
annual basis, as agreed by the parties;
(d) hold -harmless clauses protecting each party thereto from the negligent
acts of the other or for any loss or claim against one party resulting from release
of incorrect or misleading information furnished by the other party;
(e) for the right of the City, either directly or through independent auditors, to
examine and audit the organization's records and accounts relating to
disbursements made under the agreement;
(f) protection to the City against assignment of the agreement or the
subletting of work done or services furnished under the agreement;
(g) for termination of the agreement; and
(h) such other terms as may be agreed upon and which the City determines
to be in the best interest of the City and the Participants.
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7.5 Approval of Certification List. The Board of Directors, no earlier than forty-
five (45) days nor later than sixty (60) days after the end of each Year of Service
following the first Year of Service during which the Plan has been established, shall
formally approve and certify the list of those Volunteer Emergency Responders who
have qualified as Participants for such Year of Service.
7.6 Volunteer Appeal, A Volunteer Emergency Responder, whose name does
not appear on the Certification List approved by the Board of Directors (in accordance
with Section 7.5) for any Year of Service, may, within fifteen (15) days after the filing of
the report, appeal in writing to the Board of Directors to have his or her name added to
the Certification List by filing the same with the Chairperson of the Board of Directors.
Such appeal under this Section 7.6 shall set out the basis upon which the Volunteer
Emergency Responder believes he or she should be placed upon the Certification List
for such Year of Service and shall specify whether or not a public hearing is requested.
If the Volunteer Emergency Responder requests a public hearing, the Board of
Directors shall hold a public hearing on the appeal prior to or upon the date upon which
the Certification List is approved. The Board of Directors shall designate an appropriate
person to investigate the appeal and report on its merits to the Board which shall, by
majority vote, add the name of the Volunteer Emergency Responder to the Certification
List for such Year of Service if there is sufficient evidence to indicate that the individual
performed sufficient activities or services to qualify as a Participant during the prior Year
of Service. The Volunteer Emergency Responder may appeal the decision of the Board
of Directors to the district court of the county in which the Volunteer Emergency
Responder resides.
7.7 Claims Administration. Subject to final review and hearing by the Board of
Directors, the City shall make all determinations as to the right of any Participant or
Beneficiary to receive benefits under this Plan. Any denial of a claim for benefits shall
be stated in writing and delivered or mailed to the claimant, and such notice shall afford
a reasonable opportunity to any Participant or Beneficiary whose claim for Plan benefits
has been denied for a review of the decision denying the claim.
7.8 Disclosures to Participants. The City shall, within thirty (30) days after the
adoption of the Plan, provide all Volunteer Emergency Responders with a Summary of
the Plan's provisions. Such Summary shall include:
(a) the Plan's provisions relating to participation and the requirements for
being eligible to become a Participant;
(b) the manner in which vested interests in a Participant's Annual Accounts
are obtained;
(c) the amount of all contributions made to the Annual Account;
(d) any other information relating to participation in the Plan as required by
the Volunteer Emergency Responders Recruitment and Retention Act; and
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(e) any other information deemed necessary or appropriate in connection with
the Plan.
The City shall provide a copy of the Summary to each new Volunteer Emergency
Responder and to any applicant for membership to the Volunteer Department.
The City shall also provide written notice of any material modification to the Plan
to all Participants within thirty (30) days after the adoption of such material modification.
The City shall, no later than December 1s' of each year following the end of the
first full Year of Service after the adoption of the Plan, provide each Participant listed in
the Certification List for that Year of Service a summary and copy of the relevant
documents relating to the contributions to the Annual Account for such Year of Service.
By each subsequent December 1St, the City shall provide each Participant who appears
for the first time in the Certification List for the immediately preceding Year of Service
with the same information.
All documents relating to the Plan, Certification Lists, Annual Accounts, the
investment of the Trust Fund, the contributions made to the Annual Accounts and the
income derived therefrom and the identity of the administrator of the Annual Accounts
shall be public records within the meaning of Section 84-712.01 of the Nebraska
Revised Statutes.
7.9 Establishment of Procedures. Procedures shall be developed in
connection with the tallying, recording, verifying, and auditing of points earned by
Volunteer Emergency Responders, or in connection with any other matter necessary or
appropriate to administer the Plan.
7.10 Liability Limited. In administering the Plan, neither the Board of Directors,
nor any member thereof, nor the City and its officers and employees, or any other
person, or any financial institution or investment management firms with which the City
contracts, shall be liable for any acts of omission or commission, except for his, her, or
its own individual, willful, and intentional malfeasance or misfeasance. The City, and its
officers and employees, shall be entitled to rely conclusively on all tables, valuations,
certificates, opinions, and reports which shall be furnished by any accountant, trustee,
insurance company, counsel, or other expert who shall be employed or engaged by the
City.
ARTICLE VIII
TRUST FUND
8.1 Trust Fund. This Plan and Trust creates and establishes a trust fund
required to be kept and maintained by the City pursuant to Section 35-1324 of the
Nebraska Revised Statutes. All contributions hereunder shall be paid to the Trustee
and held and administered by the Trustee (to the extent custody of Plan assets is not
held by others pursuant to Section 8.3) as a single trust fund. The trust fund is intended
to be a grantor trust, within the meaning of subtitle A, chapter 1, subchapter J, part I,
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subpart E of the Internal Revenue Code of 1986, of which the City is the grantor. To the
extent the plan assets are subject to the City's creditors, the City shall have the right to
revoke the Trust provided hereunder.
8.2 Trust Assets. The Plan assets held hereunder may be paid to Participants
and Beneficiaries out of the general assets of the City if permitted under the Volunteer
Emergency Responders Recruitment and Retention Act, or out of any trust medium or
other funding medium permitted under the Volunteer Emergency Responders
Recruitment and Retention Act. Notwithstanding any provision in the Plan to the
contrary, the Plan and Trust and the assets of the Plan shall be subject to the claims of
creditors of the City in the event of the insolvency or bankruptcy of the City, and the
provisions of the Volunteer Emergency Responders Recruitment and Retention Act, as
the same from time to time may be amended. The interest of any Participant or
Beneficiary shall not be alienable by the Participant or his or her Beneficiary, either by
assignment or by any other method, and shall not be subject to be taken by his or her
creditors by any process whatsoever.
8.3 Plan Investments. Investment of the Trust Fund shall be under the
general direction of the City, except as delegated to an investment committee created
by (and reporting to) the City to so act on its behalf or to a qualified financial institution.
All assets held in the Trust Fund shall be invested in certificates of deposit, in time
deposits, and in any securities in which the state investment officer is authorized to
invest pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds
Investment Act and as provided in the authorized investment guidelines of the Nebraska
Investment Council in effect on the date the investment is made. The City may execute
an agreement with the Trustee, as part of the Trust, containing such conditions,
limitations, and other provisions deemed appropriate before the Trustee will follow any
direction as respects the investment and re -investment of any part of the Trust Fund.
8.4 Trustee Powers and Duties. The Trustee shall act as official custodian of
the cash, securities, and other assets of the Trust Fund and shall provide adequate safe
deposit facilities for the preservation of such assets subject to the direction of the City,
and shall receive all contributions made to the Plan and provide for all transfers of cash
and money necessary for investment of the Trust Fund. The Trustee shall keep and
maintain adequate records of the investments of the Trust Fund. The Trustee shall, to
the extent required by the City, furnish a surety bond payable to the Plan and/or City in
such amount as may be acceptable to the City insuring its duties and responsibilities
hereunder. The cost of any such bond shall be paid by the City. The Trustee shall
assist the City in the preparation of all reports and documents required by law or as
otherwise required in administering the Plan, but shall have no further duty to account or
report except as may be specifically required by law.
8.5 Powers of Trustee. The Trustee shall have the following powers, rights,
and duties in addition to those vested in it elsewhere in the Plan or by law:
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(a) to purchase or subscribe for any securities or other property and to retain
the same in trust;
(b) to sell, exchange, convey, transfer or otherwise dispose of any securities
or other property held by the Trustee, by private contract or at public auction. No
person dealing with the Trustee shall be bound to see to the application of the
purchase money or to inquire into the validity, expediency, or propriety of any
such sale or other disposition;
(c) to vote any stocks, bonds or other securities; to give general or special
proxies or powers of attorney with or without power of substitution; to exercise
any conversion privileges, subscription rights or other options, and to make any
payments incidental thereto; to oppose or to consent to, or otherwise participate
in, corporate reorganizations or other changes affecting corporate securities; to
pay any assessments or charges in connection therewith; and generally to
exercise any of the powers of an owner with respect to stocks, bonds, securities
or other property held as part of the Trust Fund;
(d) to cause any securities or other property held as part of the Trust Fund, to
be registered in the name of the Trustee or in the name of the Trustee's nominee;
(e) to borrow or raise money for the purpose of the Trust in such amount, and
upon such terms and conditions as the Trustee shall deem advisable; for any
sums so borrowed, to issue its promissory note as Trustee; to secure the
repayment thereof by pledging all, or any part, of the Trust Fund; and no person
lending money to the Trustee shall be bound to see to the application of the
money loaned or to inquire into the validity, expediency or propriety of any such
borrowing;
(f) to make, execute, acknowledge and deliver any and all deeds,
assignments, conveyances, and any and all other instruments that may be
necessary or appropriate to carry out the powers herein granted;
(g) to settle, compromise, abandon, or submit to arbitration, any claims,
debts, or damages due or owing to, or from, the Trust Fund; to commence or
defend suits or legal or administrative proceedings; and to represent the Trust
Fund in all suits, legal and administrative proceedings;
(h) to employ suitable agents and counsel (who may be counsel to the City),
and pay their reasonable expenses and compensation; and
(i) to do all such acts, take all such proceedings, and exercise all such rights
and privileges, although not specifically mentioned herein, as the Trustee may
deem necessary to administer the Trust Fund and to carry out the purposes of
this Trust.
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8.6 Expenses. All reasonable expenses of the Plan and Trust, including fees
for legal services rendered to the Plan and Trust, shall be paid from the unallocated
account established pursuant to Section 5.5, and to the extent such expenses are not
paid from such unallocated account, they shall be paid from the assets of the Plan
unless such expenses are paid by the City.
8.7 Resignation and Removal of Trustee.
(a) Resignation. The Trustee may resign at any time by at least thirty (30)
days' written notice to the City effective as of the date specified in such notice.
(b) Removal. The City may remove the Trustee at any time by at least thirty
(30) days' written notice to the Trustee, effective as of the date specified in such
notice.
(c) Appointment of Successor Trustee. Prior to the effective date of such
resignation or removal of the Trustee, the City shall appoint a successor Trustee
eligible to act as Trustee under the provisions of the Code by written instrument
delivered to the Trustee with the acceptance of the successor Trustee endorsed
thereon.
(d) Transfer to Successor Trustee. Upon the resignation of the Trustee as
provided in Section 8.7(a) or upon the removal of the Trustee as provided in
Section 8.7(b), the Trustee shall, as of the effective date thereof, deliver to the
City and to the successor trustee a statement of account, and as soon as
practicable thereafter shall transfer and deliver to the successor trustee the full
amount of each Participant's Annual Account, either in cash or other assets
thereof, in the discretion of the Trustee, together with such records as the
Trustee shall deem reasonably necessary for administration of the Plan by a
successor trustee. Upon receiving written receipt from the successor trustee, the
Trustee shall be discharged as Trustee hereunder without further liability to any
person or to the City. The Trustee shall be under no duty whatsoever to make
inquiry as to the power and authority of any successor trustee so designated to
act, or as to the validity or exempt status of the trust instrument under which any
successor trustee so designated shall act, and the Trustee shall not be subject to
any liability whatsoever from any person for delivering the assets of each
Participant's Annual Account to the successor trustee so designated. Prior to
transfer of assets held under this Plan and Trust to the successor trustee, the
Trustee may reserve such reasonable amount as the Trustee shall deem
necessary to provide for expenses incurred in the settlement of the Trustee's
accounts or theretofore incurred, and any sums chargeable against the Trustee
for which the Trustee may be liable, but if the sums so reserved are not sufficient
for such purposes, the Trustee shall be entitled to reimbursement for any
deficiency from the successor trustee. Should the funds reserved be in excess of
those actually needed for the purposes for which reserved, such excess shall be
subsequently delivered to the successor trustee.
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8.8 Limitation of Trustee Liability Upon Appointment of Investment Manager.
The Trustee shall not be liable for the acts or omissions of any investment manager, nor
shall the Trustee be under any obligation to inquire into, invest or otherwise manage
any asset of the Plan which is subject to the management of an investment manager.
ARTICLE IX
AMENDMENT, TERMINATION OF PLAN, AND MERGER
9.1 Amendment. The City shall have the right to amend this Plan in any and
all respects at any time and from time to time; provided, however, (1) that no
amendment shall increase the duties or liabilities of the Trustee without the Trustee's
written consent; and (2) that no amendment shall deprive any Participant or any
Beneficiary of a deceased Participant of any of the benefits to which he or she is entitled
under this Plan with respect to contributions previously made.
Any such amendment shall be by resolution of the Board of Directors, a copy of
which shall be filed with the Trustee, and the Participants shall be notified if any
substantial provisions of this Plan are changed by amendment.
9.2 Discontinuance of Contributions/Termination of Plan. The City shall have
the right to terminate this Plan or discontinue its contributions at any time. Any such
discontinuation or termination shall be by resolution of the Board of Directors. The Plan
and Trust shall also terminate upon the City's complete discontinuance of contributions
to the Plan.
9.3 Distribution Upon Discontinuance or Termination. Upon termination of the
Plan by the City or the discontinuance of contributions, the Trustee shall make the
allocations and revaluations as of the end of the Year of Service coincident with or next
following such termination or discontinuance. The City shall then direct the Trustee to
make distribution of such benefits to each Participant or Beneficiary as if each
Participant or Beneficiary satisfied the requirements of Article VI, and each affected
Participant will become fully vested in his or her benefits under the Plan. All appropriate
accounting provisions of the Plan will continue to apply until the benefits of all affected
Participants or Beneficiaries have been distributed to them.
9.4 Annexation Merger, or Consolidation. If the City ceases to exist due to an
annexation, merger, or consolidation of the City with another city, village, or fire
protection district which has an existing plan established pursuant to the Volunteer
Emergency Responders Recruitment and Retention Act, the Annual Accounts and
Certification Lists of the City shall be transferred and merged with the Annual Accounts
and Certification Lists of the other city, village, or fire protection district. The prior
participation of Volunteer Emergency Responders in the Plan shall be treated as if the
participation had been in the program of the other city, village, or fire protection district.
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If the City ceases to exist due to an annexation, merger, or consolidation of the
City with another city, village, or fire protection district which does not maintain a plan
under the Volunteer Emergency Responders Recruitment and Retention Act, each
person listed on the Certification Lists for all Years of Service completed prior to the
date upon which the City ceases to exist shall be deemed to have a fully vested interest
in each of his or her Participant's Annual Accounts for the Years of Service in which he
or she was listed on the Certification List, and such person shall be entitled to receive a
benefit under the Plan as if he or she satisfied the requirements of Article VI.
ARTICLE X
MISCELLANEOUS PROVISIONS
10.1 Non -Alienation of Benefits. To the extent required under the Volunteer
Emergency Responders Recruitment and Retention Act, none of the benefits payable
under the Plan will be subject to execution, garnishment, attachment or assignment
under the bankruptcy laws or otherwise be subject to the claims of any creditor of any
Participant, or Beneficiary, nor will any Participant or Beneficiary have a right to
alienate, anticipate, commute, pledge, encumber or assign such benefits; provided,
however, notwithstanding any provision in the Plan to the contrary, the City may amend
the Plan to make such benefits subject to the claims of the City's creditors to the extent
permitted under the Volunteer Emergency Responders Recruitment and Retention Act.
10.2 Plan Not a Contract of Employment. The Plan shall not be deemed to
constitute a contract or agreement between the City and/or the Volunteer Department
and any Volunteer Emergency Responder, or be a consideration for the employment of
any Volunteer Emergency Responder. Nothing in the Plan shall give any Volunteer
Emergency Responder the right to employment with the City and/or the Volunteer
Department.
10.3 Workers' Compensation. A Volunteer Emergency Responder's
participation in, and the receipt of benefits under, the Plan shall not for that cause alone
alter the Volunteer Emergency Responder's relationship to the City and/or the Volunteer
Department as being one of a volunteer (as defined in the Volunteer Emergency
Responders Recruitment and Retention Act) for purposes of the Nebraska Workers'
Compensation Act.
10.4 Compliance With State and Federal Law. Notwithstanding anything herein
to the contrary, the Plan shall be administered in a manner necessary to comply with
the requirements under the Volunteer Emergency Responders Recruitment and
Retention Act, and Internal Revenue Code section 457(e)(11).
10.5 Invalidity of Certain Provisions. If any provision of this Plan shall be held
invalid or unenforceable, such invalidity or unenforceability shall not affect any other
provision hereof, and the Plan shall be construed and enforced as if such provision had
not been included.
10.6 Additional Limitations. In case it becomes impossible to perform any act
under this Plan, that act shall be performed which, in the judgment of the City will most
nearly carry out the intent and purposes of this Plan, and all parties to this Plan or in any
way interested shall be bound by any act performed under such conditions.
10.7 Counterparts. This Plan and Trust may be executed in two or more
counterparts, any one of which will be an original without reference to the other.
10.8 Plan Construed as a Whole. The provisions of the Plan shall be construed
as a whole in such manner as to carry out the provisions of the Plan and shall not be
construed separately without relation to the context.
IN WITNESS WHEREOF, the City of Blair has caused this restated Plan and
Trust to be adopted and executed by its duly authorized officer, effective October 1,
2013, and the Trustee has executed this Plan and Trust this day of
-0 r -r I 12013.
DOCS/902060.2
CITY OF BLAIR
Printed Name Title
C1CITY TREASURER,
Trustee
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Prinl4dName Title