Title
K. Amendment to Agreement with Nationwide (Resolution)
Resolution amending the Village's 457 Plan Agreement with Nationwide to allow Qualified Domestic Relations Orders to be executed.
Body
WHEREAS, EMPLOYER executed the above referenced Plan Document, as amended: and
WHEREAS, effective _____________, EMPLOYER now desires to further amend the plan document.
1. The following Article XIII is hereby added:
ARTICLE XIII
13.01 When the PLAN received a judgement, decree or order entered or enforceable pursuant to local domestic relations marital property law ("domestic relations order"), and relating to the property rights of a PARTICIPANT's present or former spouse, child or other dependent ("ALTERNATE PAYEE"), then:
(a) The ADMINISTRATOR shall promptly notify the PARTICIPANT and ALTERNATE PAYEE of the receipt of such order, and
(b) The EMPLOYER, within a reasonable time, shall determine the validity of the domestic relations order as set forth in this Article. Once a determination as to the validity of the domestic relations order is made, the ADMINISTRATOR shall notify the PARTICIPANT and ALTERNATE PAYEE of such determination.
13.02 A valid domestic relations order must be a judgement, decree, order, or approval of marital property settlement relating to: (1) the property rights of the ALTERNATE PAYEE; and (2) is an order made pursuant to state domestic relations law (including community property law), which relates to the property rights of the ALTERNATE PAYEE. In addition, the domestic relations order must:
(a) Create or recognize the existence of, or assign to an ALTERNATE PAYEE a claim for a portion of any benefits that actually become payable to a PARTICIPANT under the PLAN.
(b) Clearly specify the following information:
(i) The name, social security number, and last known mailing address of the PARTICIPANT and ALTERNATE PAYEE covered by the domestic relations order;
(ii) The amount or percentage, or the manner to be used in determining the amount or percentage, of the PARTICIPANT's benefit to be paid by the PLAN to the ALTERNATE PAYEE;
(iii) The number of payments or period to which the order applies; and
(iv) The applicability of the order to the PLAN.
13.03 When the EMPLOYER has determined that a valid domestic relations order applies to a PARTICIPANT's account, the EMPLOYER shall notify the ADMINISTRATOR and provide the ADMINISTRATOR with all pertinent information regarding the domestic relations order, including the information set forth in Section 13.02. The EMPLOYER shall direct the ADMINISTRATOR to comply with the domestic relations order and specify the value or benefit of the PARTICIPANT's account to which the ALTERNATE PAYEE is entitled. Once the ADMINISTRATOR has received from the EMPLOYER the required information and direction, the ADMINISTRATOR shall establish a separate account for the ALTERNATE PAYEE and place the value or benefit of the PARTICIPANT's account in the ALTERNATE PAYEE's account as requested by the EMPLOYER.
13.04 The ALTERNATE PAYEE is entitled to receive distributions immediately upon the establishment of his or her account under Section 13.03, and commencement of distributions must begin no later than April 1st following the year in which the ATLERNATE PAYEE attains age 70 ½, in accordance with the terms of Section 8.02. Distributions made to an ALTERNATE PAYEE are reported as taxable income to the ALTERNATE PAYEE. State taxes, if applicable, and Federal taxes will be withheld from any distribution on the ALTERNATE PAYEE's account based upon the tax withholding elections of the ALTERNATE PAYEE. The ALTERNATE PAYEE may not make any contributions to an account established under Section 13.03. The ALTERNATE PAYEE is permitted to name beneficiaries to his or her account and exercise exchanges among the funding options as permitted by the PLAN and the investment providers under the PLAN.
IN WITNESS WHEREOF, the undersigned has executed this Amendment this _______ day of ______________, 20___.
_________________________________________
(Name of Employer)
By: ______________________________________