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2010-50RESOLUTION NO. 2010-50 COUNCIL MEMBER ABBOTT INTRODUCED THE FOLLOWING RESOLUTION: BE IT RESOLVED BY THE MAYOR AND THE CITY COUNCIL OF BLAIR, NEBRASKA: 1. Adoption of Amendment of the City of Blair, Nebraska Civilian Employees' Pension Plan: NOW, BE IT RESOLVED, that the City shall amend and it hereby does adopt an Amendment to the City of Blair, Nebraska Civilian Employees' Pension Plan (the "Civilian Plan ") in the form of the Amendment document attached hereto and by this reference fully incorporated herein. The purpose of said Amendment is to adopt certain changes enacted under the Pension Protection Act of 2006, the Heroes Earnings Assistance and Relief Tax Act of 2008, and the Worker, Retiree, and Employer Recovery Act of 2008. 2. Adoption of Amendment of the City of Blair, Nebraska Blair Police Retirement Plan and Trust: NOW, BE IT RESOLVED, that the City shall amend and it hereby does adopt an Amendment to the City of Blair, Nebraska Blair Police Retirement Plan and Trust (the "Police Plan ") in the form of the Amendment document attached hereto and by this reference fully incorporated herein. The purpose of said Amendment is to adopt certain changes enacted under the Pension Protection Act of 2006, the Heroes Earnings Assistance and Relief Tax Act of 2008, and the Worker, Retiree, and Employer Recovery Act of 2008. Authorizations: NOW, THEREFORE, BE IT FURTHER RESOLVED, that the Mayor and other appropriate elected officials and officers of the City of Blair shall be, and they hereby are, authorized to do all things necessary to carry out and accomplish the foregoing Resolutions, including the execution of any document or amendment which may be necessary or appropriate to amend and administer the aforesaid Plans, including such actions as may be necessary or appropriate to achieve and maintain tax qualification of the aforesaid Plans under Section 401(a) of the Internal Revenue Code of 1986, as amended. COUNCIL MEMBER ABBOTT MOVED THAT THE RESOLUTION ION BE ADOPTED AS READ, WHICH SAID MOTION WAS SECONDED BY COUNCIL MEMBER JENSEN. UPON ROLL CALL, COUNCIL MEMBERS SHEPARD, STEWART, FANOELE, CHRISTIANSEN, KEPHART, JENSEN, WOLFF AND ABBOTT VOTING "AYE" AND COUNCIL MEMBERS NONE VOTING "NAY ", THE MAYOR DECLARED THE FOREGOING RESOLUTION PASSED AND APPROVED THIS 23RD DAY OF NOVEMBER, 2010. 11 11 1 111 " 111 111-010� i . a � . . 11 B %JE E. REALPH, MAYOR BREN R WHEELER CITY CLER (SEAL) STATE OF NEBRASKA ) ) :ss: WASHINGTON COUNTY ) BRENDA R. WHEELER, hereby certifies that she is the duly appointed, qualified and acting City Clerk of the City of Blair, Nebraska, and that the above and foregoing Resolution was passed and adopted at a regular meeting of the Mayor and City Council of said City, held on the 23rd day of November, 2010. BREN AMENDMENT CITY OF BLAIR, NEBRASKA BLAIR POLICE RETIREMENT PLAN AND TRUST The City of Blair, Nebraska Blair Police Retirement Plan and Trust (the "Plan "), as amended and restated effective January 1, 2008, is hereby further amended in accordance with the provisions of this Amendment to incorporate requirements under the Pension Protection Act of 2006, the Heroes Earnings Assistance and Relief Tax Act of 2008, and the Worker, Retiree and Employer Recovery Act of 2008. Section 3.6 of the Plan is hereby amended and replaced in its entirety to provide as follows: "3.6 Eligible Rollover Distributions Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee's election under this Section, a distributee may elect, at the time and in the manner prescribed by the Retirement Committee, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. For purposes of this Section 3.6, the following definitions shall apply: (1) Eligible Rollover Distribution: An eligible rollover distribution is any distribution of all or any portion of the balance of the Participant's Nonforfeitable Accrued Benefit that is credited to 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 portion of a distribution to the extent such distribution is a required minimum distribution under Section 401(a)(9) of the Internal Revenue Code; any hardship distribution (if permitted by the Plan); and any portion of a distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities). For purposes of this Section 3.6, a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after -tax employee contributions or other amounts which are not includible in gross income. However, such portion may be transferred only to an individual retirement account or annuity described in Sections 408(a) or 408(b) of the Internal Revenue Code, or to a qualified plan described in Sections 401(a) or 403(b) of the Internal Revenue Code that provides for a separate account for amounts so transferred (and earnings thereon), including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. An eligible rollover distribution to a non - spouse Designated Beneficiary must be made by a direct trustee -to- trustee transfer. A distribution of amounts which are 2009 RMDs or Extended RMDs (both as defined in Section 13.2(d) of the Plan) shall be treated as an eligible rollover distribution in 2009. (2) Eligible Retirement Plan: An eligible retirement plan is an individual retirement account described in Section 408(a) of the Internal Revenue Code, an individual retirement annuity described in Section 408(b) of the Internal Revenue Code, an annuity plan described in Section 403(a) of the Internal Revenue Code, an annuity contract described in Section 403(b) of the Internal Revenue Code, an eligible plan under Section 457(b) of the Internal Revenue Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state, or a qualified trust described in Section 401(a) of the Internal Revenue Code that accepts the distributee's eligible rollover distribution 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 relations order, as defined in Section 414(p) of the Internal Revenue Code. For purposes of a distribution on behalf of a Designated Beneficiary who is not a spouse or former spouse of the Participant, "Eligible Retirement Plan" shall mean an individual retirement account described in Section 408(a) of the Internal Revenue Code or an individual retirement annuity described in Section 408(b) of the Internal Revenue Code established for the purpose of receiving a distribution on behalf of the Designated Beneficiary and that will be treated as an inherited IRA pursuant to the provisions of Section 402(c)(11) of the Internal Revenue Code. For distributions made after December 31, 2007, an "Eligible Retirement Plan" shall include a Roth IRA described in Section 408A of the Internal Revenue Code. (3) - Distributee: A distributee includes a Participant or former Participant, and the Participant's surviving spouse or former spouse who is an alternate payee under a qualified domestic relations order, as defined in Section 414(p) of the Internal Revenue Code. Effective January 1, 2007, "Distributee" shall also include a Participant's Designated Beneficiary who is not the Participant's surviving spouse or former spouse, including a trust that qualifies as a Designated Beneficiary under.Section 401(a)(9)(E) of the Internal Revenue Code. (4) Direct Rollover. A direct rollover is a payment by the Plan to the eligible retirement plan specified by the distributee." 2 Distributions which are not subject to the foregoing may commence less than thirty (30) days after notice to the distributee is given, provided that (i) the Retirement Committee clearly informs the distributee that the distributee has a right to a period of at least thirty (30) days after receiving the notice to consider the decision of whether or not to elect a distribution (and, if applicable, a particular option), and (ii) the distributee, after receiving the notice, affirmatively elects a distribution). The last paragraph of Section 4.3 of the Plan is hereby amended and replaced in its entirety to provide as follows: "Notwithstanding any provision of this Plan to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with Section 414(u) of the Internal Revenue Code. Beginning January 1, 2009, any Participant who receives differential wage payments as defined in Section 3401(h)(2) of the Internal Revenue Code that are paid to a Participant by the Employer during a period of qualified military service shall, for purposes of this Plan, be considered as an Employee, the wage differential payment shall be treated as Compensation, and the Participant shall be eligible to make Employee Contributions or Voluntary Contributions and to receive allocations of Matching Employer Contributions with respect to such Compensation that is attributable to the wage differential payments. The Plan shall not be treated as failing to meet the requirements of any provisions described in Section 414(u)(1)(C) of the Internal Revenue Code by reason of any contribution to the Plan that is based on the differential wage payment; provided, however, this exception applies only if all Employees of the Employer performing service in the uniformed services described in Section 3401(h)(2)(A) of the Internal Revenue Code are entitled to receive differential wage payments on reasonably equivalent terms and, if eligible to participate in the Plan or any other retirement plan of the Employer, to make contributions based on the differential wage payments on reasonably equivalent terms." Section 9.01 of the Plan is hereby amended by the addition of the following provisions to the end of such Section: "For purposes of the death benefit provided under the Plan, in the case of a death of a Participant occurring on or after January 1, 2007, while performing qualified military service (as defined in Section 414(u) of the 3 Internal Revenue Code), the Participant's Beneficiary(ies) shall be entitled to any additional death benefit (other than accrued benefits relating to the period of qualified military service) provided under the Plan as if the Participant had returned to employment and then incurred a Termination of Employment on account of the Participant's death." W Section 13.2 of the Plan is hereby amended by the addition of a new subparagraph (d) at the end of such Section 13.2 as follows: "(d) No Required Minimum Distributions for 2009 Notwithstanding the foregoing requirements of this Section 13.2 of the Plan, a Participant or Beneficiary who would have been required to receive minimum distributions for 2009 but for the enactment of Section 401(a)(9)(H) of the Internal Revenue Code ( "2009 RMDs "), and who would have satisfied that requirement by receiving distributions that are (1) equal to the 2009 RMDs or (2) one or more payments in a series of substantially equal distributions (that include the 2009 RMDs) made at least annually and expected to last for the life (or life expectancy) of the Participant, the joint lives (or joint life expectancy) of the Participant and the Participant's Designated Beneficiary, or for a period of at least 10 years ( "Extended 2009 RMDs "), will receive those distributions for 2009 unless the Participant or Beneficiary chooses not to receive such distributions. Participants and Beneficiaries described in the preceding sentence will be given the opportunity to elect to receive the distribution described in the preceding sentence. In addition, notwithstanding Section 3.6 of the Plan, and solely for the purposes of applying the direct rollover provisions of the Plan, 2009 RMDs and Extended 2009 RMDs, will be treated as Eligible Rollover Distributions." 0 n ,• _ _ ��� l the ll_._ L. U b y e %d,4; +ice► -% r%f n new w Se tin 13 Wi 11 f Iicle X! I! o1 the Plan is I ICI eby al I ( ende d by a is auiuvi I vi a 1- as follows: "13.15 Consent to Distributions and Waiver of Certain Notice Periods for Distributions Any distribution to a Participant under this Plan which requires such Participant's consent, shall not be made until the required consent is provided by the Participant. A Participant shall be informed of his or her right to defer receipt of the distribution and such other information and disclosures that may be required under the Income Tax Regulations to the Code. If a Participant fails to consent, it shall be deemed an election to defer the commencement of payment of any benefits. However, any election to defer the receipt of benefits shall not apply with respect to distributions which are required under Section 13.2 M of the Plan. A distribution may commence after any required notice is given provided that: (i) the Plan Administrator clearly informs the Participant that the Participant has a right to a period of at least thirty (30) days after receiving the notice to consider the decision of whether or not to elect a distribution (and, if applicable, a particular distribution option), and (ii) the Participant, after receiving notice, affirmatively requests a distribution." VI. The foregoing amendments to the Plan shall supersede the existing provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment. The remaining terms and provisions of the Plan are hereby confirmed and ratified in all respects except insofar as the foregoing provisions of this Amendment amend the same. IN WITNESS WHEREOF, the City of Blair, Nebraska, as Employer, has caused this Amendment to the Plan to be executed by its duly authorized official, and the Trustee has caused this Amendment to be executed this day of C)'4 C , 2010. THE CITY OF BLAIR, NEBRASKA, Employer By. kN' � 'Cial Title: TREASURER OF THE CITY OF BLAIR, NEBRASKA, Trustee DOCS/1003599.1 5 AMENDMENT TO THE CITY OF BLAIR, NEBRASKA CIVILIAN EMPLOYEES' PENSION PLAN The City of Blair, Nebraska Civilian Employees' Pension Plan (the "Plan "), as amended and restated effective January 1, 2008, is hereby further amended in accordance with the provisions of this Amendment to incorporate requirements under the Pension Protection Act of 2006, the Heroes Earnings Assistance and Relief Tax Act of 2008, and the Worker, Retiree and Employer Recovery Act of 2008.. Section 6.01(C) of the Plan is hereby amended and replaced in its entirety to provide as follows: "(C) Direct Rollover of Eligible Rollover Distributions. A Participant or other distributee may elect, at the time and in the manner prescribed by the Advisory Committee, to have any portion of his Eligible Rollover Distribution paid directly to an Eligible Retirement Plan specified by the distributee in a Direct Rollover. For purposes of this Section 6.01(C), the following definitions apply: (1) "Eligible Rollover Distribution" means any distribution of all or any portion of the balance of the Participant's Nonforfeitable Accrued Benefit that is credited to 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 portion of a distribution to the extent such distribution is a required minimum distribution under Code § 401(a)(9); any hardship distribution (if permitted by the Plan); and any portion of a distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities). For purposes of this Section 6.01(C), a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after -tax employee contributions or other amounts which are not includible in gross income. However, .such portion may be tr ansfer red o nly to any i� �dividual retirement account or annuity described in Code §§ 408(a) or 408(b), or to a qualified plan described in Code §§ 401(a) or 403(b) that provides for a separate account for amounts so transferred (and earnings thereon), including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. An eligible rollover distribution to a non - spouse Designated Beneficiary must be made by a direct trustee -to- trustee transfer. A distribution of amounts which are 2009 RMDs or Extended RMDs (both as defined in Section 6.02(E) of the Plan) shall be treated as an eligible rollover distribution in 2009. (2) . "Eligible Retirement Plan" is an individual retirement account described in Code § 408(a), an individual retirement annuity described in Code § 408(b), an annuity plan described in Code § 403(a), an annuity contract described in Code § 403(b), an eligible plan under Code § 457(b) which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state, or a qualified trust described in Code § 401(a) that accepts the distributee's eligible rollover distribution 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 relations order, as defined in Code § 414(p). For purposes of a distribution on behalf of a Designated Beneficiary who is not a spouse or former spouse of the Participant, "Eligible Retirement Plan" shall mean an individual retirement account described in Code § 408(a) or an individual retirement annuity described in Code § 408(b) established for the purpose of receiving a distribution on behalf of the Designated Beneficiary and that will be treated as an inherited IRA pursuant to the provisions of Code § 402(c)(11). For distributions made after December 31, 2007, an "Eligible Retirement Plan" shall include a Roth IRA described in Code § 408A. (3) "Distributee" includes a Participant or former Participant, and the Participant's surviving spouse or former spouse who is an alternate payee under a qualified domestic relations order, as defined in Code § 414(p). Effective January 1, 2007, "Distributee" shall also include a Participant's Designated Beneficiary (as defined in Section 6.02(D)(1)) who is not the Participant's surviving spouse or former spouse, including a trust that qualifies as a Designated Beneficiary under Code § 401(a)(9)(E). (4) "Direct Rollover" is a payment by the Plan to the eligible retirement plan specified by the distributee." Section 6.02 of the Plan is hereby amended by the addition of a new subparagraph (E) at the end of such Section 6.02 as follows: "(E) No Required Minimum Distributions for 2009. Notwithstanding the foregoing requirements of this Section 6.02 of the Plan, a Participant or Beneficiary who would have been required to receive minimum distributions for 2009 but for the enactment of Code § 401(a)(9)(H) ( "2009 RMDs "), and who Would have satisfied that requirement by receiving .distributions that are (1) equal to the 2009 RMDs or (2) one or more payments in a series of substantially equal distributions (that include the 2009 RMDs) made at least annually and expected to last for the life (or life expectancy) of the Participant, the joint lives (or joint life expectancy) of the Participant and the Participant's Designated Beneficiary, or for a period of at least 10 years ( "Extended 2009 RMDs "), will receive those distributions for 2009 unless the Participant or Beneficiary chooses not to receive such distributions. Participants and Beneficiaries described in the preceding sentence will be given the opportunity to elect to receive the distribution described in the preceding sentence. In addition, notwithstanding Section 6.01(C) of the Plan, and solely for the purposes of applying the direct rollover provisions of the Plan, 2009 RMDs and Extended 2009 RMDs, will be treated as Eligible Rollover Distributions." 2 Section 6.04 of the Plan is hereby amended by the addition of the following provisions to the end of such Section: "For purposes of the death benefit provided under the Plan, in the case of a death of a Participant occurring on or after January 1, 2007, while performing qualified military service (as defined in Code § 414(u)), the Participant's Beneficiary(ies) shall be entitled to any additional death benefit (other than accrued benefits relating to the period of qualified military service) provided under the Plan as if the Participant had returned' to employment and then incurred a Separation from Service on account of the Participant's death." IV. Article VI of the Plan is hereby amended by the addition of a new Section 6.06 as follows: "6.06 Consent to Distribution and Waiver of Certain Notice Periods for Distributions. Any distribution to a Participant under this Plan which requires such Participant's consent, shall not be made until the required consent is provided by the Participant. A Participant shall be informed of his or her right to defer receipt of the distribution and such other information and disclosures that may be required under the Income Tax Regulations to the Code. If a Participant fails to consent, it shall be deemed an election to defer the commencement of payment of any benefits. However, any election to defer the receipt of benefits shall not apply with respect to distributions which are required under Section 6.02 of the Plan. A distribution may commence after any required notice is given provided that: (i) the Plan Administrator clearly informs the Participant that the Participant has a right to a period of at least thirty (30) days after receiving the notice to consider the decision of whether or not to elect a distribution (and, if applicable, a particular distribution option), and (ii) the Participant, after receiving notice, affirmatively requests a distribution." 0 Sec ...1'..... of d nn 1' J. L. . -. nl� in �r� �i n �r A A �1 r%A r v��nne�i -1 1 1�'Q FYI +IYG +\ / +f1 nrt irin -me Sectio 1 1 1 . V V of U IC r Ian IJ hVI G b y a lueu a1 1u 1'c�Nia.,UU 1 n pis �:� nn vLy iv N� v v ��.., u., follows: "11.09 Qualified Military Service /Treatment of Differential Wage Payments. Notwithstanding any provision of this Plan to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with Code § 414(u). Beginning January 1, 2009, any Participant who receives differential wage payments as defined in Code § 3401(h)(2) that are paid to a Participant by the Employer during a period of qualified military service shall, for purposes of this Plan, be considered as an Employee, the wage differential payment shall be treated as Compensation, and the Participant shall be eligible to make Participant Required Contributions or Voluntary Contributions and to receive 3 allocations of Employer Contributions with respect to such Compensation that is attributable to the wage differential payments. The Plan shall not be treated as failing to meet the requirements of any provisions described in Code § 414(u)(1)(C) by reason of any contribution to the Plan that is based on the differential wage payment; provided, however, this exception applies only if all Employees of the Employer performing service in the. uniformed services described in Code § 3401(h)(2)(A) are entitled to receive differential wage payments on reasonably equivalent terms and, if eligible to participate in the Plan or any other retirement plan of the Employer, to make contributions based on the differential wage payments on reasonably equivalent terms." VI. The foregoing amendments to the Plan shall supersede the existing provisions of the . Plan to the extent those provisions are inconsistent with the provisions of this Amendment. The remaining terms and provisions of the Plan are hereby confirmed and ratified in all respects except insofar as the foregoing provisions of this Amendment amend the same. IN WITNESS WHEREOF, the City of Blair, Nebraska, as Employer, has caused this Amendment to the Plan to be executed by its duly authorized official, and the Trustee has caused this Amendment to be executed this 3 day of o V , 2010. THE CITY OF BLAIR, NEBRASKA, Employer By: Official Title: TREASURER OF THE CITY OF BLAIR, NEBRASKA, Trustee By: DOCS/1003562.1 12