03-1412 ICMA CIty Manager 457 Deferred Compensation Plan

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distributee and the distributee's dcsignatl'tl beneficiary, or for a specifIed period of ten yeus or more; any distribution to the extent such distribution is required undt'f Sec- tions 40 I (a)(9) and 457(d)(2) of the Code; and any distribution made as a result of an unforeseeable emergency of the employee. For purposes of disrributions from orher eligible retirement plans rolled over into this Plan, the term eligible rollover distribu- tion shall not include the portion of any distribution that is nor includible in gross incOIne (determined without regard to the exclusion fOf net unrealized appreciation with respect to employer securities). (2) Eligible Rerirement Plan: An eligible retirement plan is an individual rerirement account described in Secrion 408(a) of the Code, an individual rerirement annuiry described in Section 408(b) of rhe Code, an annuiry plan described in Secrions 403(a) or 403(b) of the Code, a qualified trusr described in Secrion 401 (a) of the Code, or an eligible deferred compensation plan described in Secrion 457(b) of the Code which is maintained by an eligible governmental employer described in Section 457(e)(1)(A) of the Code, that accepts the distributee's eligible rollover distribution. (3) Distributee: A distributee includes an employee or former employee. In addition, the employee's or former employee's surviving spouse and the employee's or former em- ployee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Section 414(1') of the Code, are distributees with regard ro the interest of the spouse or former spouse. (4) Direct Rollover: A direct rollover is a payment by the plan ro the eligible retirement plan specified by the distributee. 6.11 Trustee-to- Trustee Transfers to Purchase Permissive Service Credit: Allor a portion of a Parrici- pant's Account may be transferred direcrly ro rhe trustee of a defined benefir governmental plan (as defined in Section 414(d) of rhe Code) if such transfer is (A) for the purchase of permissive service credit (as defined in Section 415(n)(3)(A) of the Code) under such plan, or (B) a repayment ro which Section 415 of the Code does not apply by reason of subsection (k)(3) thereof, within the meaning of Section 457(e)(17) of the Code. 6.12 Treatment of Distributions of Amounts Previously Rolled Over From 401 (a) and 403(b) Plans and lRAs. For purposes of Section 72(t) of the Code, a distribution from this Plan shall be treated as a distribution from a qualified retirement plan described in Section 4974(c)(1) of the Code to the extent that such distribution is atrributable ro an amount transferred ro an eligible deferred compensation plan from a qualified retirement plan (as defined in Section 4974(c) of the Code). 6.13 Deemed lRAs: Effective for Plan Years beginning after December 31, 2002, the Employer may elect to allow Employees ro make voluntary employee contributions to a separate account or annuity established under the Plan that complies with the requirements of Code section 408(q) and any regulations promul- gated thereunder. Such accounts or annuities shall meet the applicable requirements of Code sections 408 or 408A and shall be rreated as an individual retirement plan that is not part of rhe Plan. 6.14 Employer Liability: In no event shall the Employer's liability to pay benefits to a Participant under this Plan exceed the value of the amounts credited ro the Participant's Account; neither the Employer nor the Administraror shall be liable for losses arising from depreciation or shrinkage in the value of any invest- ments acquired under this Plan. 10