03-1412 ICMA CIty Manager 457 Deferred Compensation Plan

Home Browse Search

. -- ""-_._-~.__.--_._---- (h) Last Three Years Catch-up Contribution: For each of the last three (3) taxable years for a Partici- pant <.:nding bdc.HC his or her attainment of Normal Retirement Age, the n1axin1um amount of Deferred Compensation shall bc the lesser of (1) the 457 Cltch-Up Dollar Limitarion, or (2) the sum of (i) the Normal Limitation for the taxable year. and (ii) the Normal Limitation for each prior t:lxablc year of the Participant commencing after 1978 less the arTIOllnt of the Partici- pant's Deferred Compensation for such prior taxable ycars. A prior taxable year shall be taken into account under the preceding sentence only if (x) the Participant was eligible to participate in the Plan for such year (or in any other eligible deferred compensation plan established under Section 457(b) of the Code which is properly taken into account pursuant to regulations under Section 457), and (y) compensation (if any) deferred under the Plan (or such other plan) was subject to the Normal Limitation. 5.03 Other Plans: Notwithstanding any provision of the Plan to the contrary, the amount excludible from a Participants gross income under this Plan or any other eligible deferred compensation plan under Section 457(b) of the Code shall not exceed the limits set forth in Sections 457(b) and 414(v) of the Code. Prior to January I, 2002, the limits under Section 457(b) of the Code described in the first sentence of this Section 5.03 shall be further reduced by any amount excluded from gross income under Sections 401 (k), 402(e)(3), 402(h)(1)(B), and 403(b) of the Code, or any amount with respect to which a deduction is allowable by reason of a contribution to an organization described in Section 501 (c)(18) of the Code. Article VI. Trust and Investment of Accounts 6.01 Investment of Deferred Compensation: A Trust is hereby created to hold all the assets of the Plan for the exclusive benefit of Participants and Beneficiaries, except that expenses and taxes may be paid from the Trust as provided in Section 6.03. The trustee shall be the Employer or such other person that agrees to act in that capacity hereunder. 6.02 Investment Powers: The trustee or the Administrator, acting as agent for the trustee, shall have the powers listed in this Section with respect to investment of Trust assets, except to the extent that the invest- ment of Trust assets is directed by Participants, pursuant to Section 6.05. (a) To invest and reinvest the Trust without distinction between principal and income in common or preferted stocks, shares of regulated investment companies and other mutual funds, bonds, loans, notes, debentures, certificates of deposit, contracts with insurance companies including but not limited to insurance, individual or group annuity, deposit administration. guaranteed interest contracts, and deposits at reasonable rates of interest at banking institutions including but not limited to savings accounts and certificates of deposit. Assets of the Trust may be invested in securities that involve a higher degree of risk than investments that have demonstrated their investment performance over an extended period of time. (b) To invest and reinvest all or any part of the assets of the Trust in any common, collective or commingled trust fund that is maintained by a bank or other institution and that is available to Employee plans described under Sections 457 or 401 of the Code, or any successor provisions thereto, and during the period of time that an investment through any such medium shall exist, to the extent of participation of the Plans the declaration of trust of such commonly collective, or commingled trust fund shall constitute a part of this Plan. 6