03-1412 ICMA CIty Manager 457 Deferred Compensation Plan

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'- 2.15 Normal Retirement Age: Age 70-1/2. unless the Panicipant has elected an alternate Normal Retire- l1lCIH Age by wrirren insrrun1ent delivered to the Administrator prior to J Severance Event. A Participant's Norma] Rcrirement Age detennines the period during which a Participant may utilize the 457 Catch-Up Dollar Limitation of Section 5.02(b) hereunder. Once a Panicipant has to any extent utilized the catch-up limitation of Section 5.02(b), his Normal Retirement Age may not be changed. " , A Participant's alrernate Normal Retirement Age may not be carlier than the earliest date that the Participant will become eligible to retire 3nd receive unreduced retirement benefits under the Employer's basic retire- ment plan covering the Panicipant and may not be later than the date the Participant will attain age 70-1/2. If a Panicipant continues employment after attaining age 70-1/2, not having previously elected alrernate Normal Retirement Age, the Participant's alternate Normal Retitement Age shall not be later than the mandatory retirement age, if any, established by the Employer, or the age at which the Participant actually has a Severance Event if the Employer has no mandatory retirement age. If the Participant will not become eligible to receive benefits under a basic retirement plan maintained by the Employer, the Participant's alrernate Normal Retirement Age may not be earlier than age 55 and may not be later than age 70-1/2. 2.16 Participant: Any Employee who has joined the Plan pursuant to the requirements of Article IV. 2.17 Percentage Limitation: Prior to January 1,2002, the Percentage Limitation means 33 1/3 percent of the panicipant's Includible Compensation for the taxable year, which will ordinarily be equivalent to the lesser of the Dollar Limitation in effect for the taxable year or 25 percent of the Participant's Normal Com- pensation. After December 31, 2001, the Percentage Limitation means 100 percent of the participant's Includible Compensation for the taxable year, which will ordinarily be equivalent to the lesser of the Dollar Limitation in effect for the taxable year or 50 percent of the Participant's Normal Compensation. 2.18 Plan Year: The calendar year. 2.19 Retirement: The first date upon which both of the following shall have occurred with respect to a participant: Severance Event and attainment of age 65. 2.20 Severance Event: Prior to January 1, 2002, severance of the Participant's employment with the Em- ployer that constitllles a "separation from service" within the meaning of Section 402(e)(4)(D)(iii) of the Code. After December 31, 2001, a Severance Event means a severance of the Participant's employment with the Employer within the meaning of Section 457(d)(1)(A)(ii) of the Code. In general, a Participant shall be deemed to have experienced a Severance Event for purposes of this Plan when, in accordance with the established practices of the Employer, the employment relationship is consid- ered to have actually terminated. In the case of a Participant who is an independent contractor of the Em- ployer, a Severance Event shall be deemed to have occurred when the Participant's contract under which services are performed has completely expired and terminated, there is no foreseeable possibility that the Employer will renew the contract or enter into a new contract for the Participant's services, and it is not anticipated that the Participant will become an Employee of the Employer, or such other events as may be permitted under the Code. 2.21 Trllst: The Trust created under Article VI of the Plan which shall consist of all compensation deferred under the Plan, plus any income and gains thereon, less any losses, expenses and distributions to Participants and Beneficiaries. 4