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HomeMy WebLinkAbout5221 ORDINANCE NO. 5221 ~ 6 ~' AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON AMENDING ORDINANCE NO. 3644, REGARDING THE DEFERRED COMPENSATION PLAN FOR THE CITY OF AUBURN. WHEREAS, the Auburn City Council at its regular meeting of June 15, 1981, adopted Ordinance No. 3644 which adopted a deferred compensation plan for the City of Auburn; and WHEREAS, the City of Auburn deems it necessary to restate the Plan under Section 457 of the Internal Revenue Code; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Purpose. The purpose of this Ordinance is to amend Ordinance No. 3644 as set forth in Exhibit "A" attached hereto in order to restate and adopt the plan under Section 457 of the Internal Revenue Code. Section 2. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Section 3. This Ordinance shall take effect and be in force five (5) days from and after its passage, approval and publication, as provided by law. DATED this ,.'5' ~ day of April, 1999. CITY OF AUBURN, WASHINGTON CHARLES A. BOOTH MAYOR ATTEST: Danielle E. Dasklm, City Clerk APPROVED AS TO FORM: Michael J. Reynolds City Attorney EXHIBIT A City of Auburn Deferred Compensation Plan Article 1 - Introduction The City of Auburn hereby adopts its Deferred Compensation Plan effective /~ t'0'/,E//1999. The Employer intends for this Plan to qualify for favorable ta~reatment 457 of the under Section Internal Revenue Code. Article 1 - Definitions 1.01 APPROVED INSTITUTION: Any insurance company, bank, or other financial institution approved by the Plan Administrator to provide annuity contracts, trust accounts, or custodial accounts to the Participants under the Plan. 1.02 BENEFICIARY. Any person or entity designated by the Participant to receive benefits payable after the death of the Participant. Any such designation shall be in writing delivered to the Plan Administrator before the death of the Participant, and shall revoke all prior designations. If the Participant has not designated a Beneficiary, or if no designated Beneficiary survives the Participant, then the Beneficiary is the Participant's estate. A Beneficiary is deemed not to have survived the Participant if he or she dies within 30 days after the Participant. A beneficiary designation may be joint or contingent or both. Unless otherwise stated, joint Beneficiaries are entitled to equal shares. A contingent Beneficiary is entitled to a benefit only if there is no surviving primary Beneficiary. A benefit election made by a Participant may be binding on any such Beneficiary subject to the right of a Beneficiary to defer payments to the extent permitted under Section 5.06. 1.03 CODE: The Internal Revenue Code of 1986, as amended, or any future United States internal revenue law. 1.04 COMMITTEE: Compensation Committee hereinafter referred to as "Committee," established by Ordinance No. 3644 of the City of Auburn. "Committee" shall mean an administrative unit consisting of three persons appointed from time to time by the Employer which shall have the duties defined in this Plan. 1.05 COMPENSATION: The total annual remuneration for employment payable by the Employer that would be included in the federal gross income of the Participant. 1.06 DEFERRAL AGREEMENT: A written agreement between the Employer and a Participant under which a designated amount of Compensation not yet earned will be deferred in accordance with the provisions of the Plan. 1.07 ELIGIBLE INDIVIDUAL: Any individual eligible employee of the Employer or any individual performing services for the Employer either by appointment or election, who performs services for the Employer on a regular and continuing basis for which compensation is paid. 1.08 EMPLOYER: City of Auburn 1.09 INCLUDIBLE COMPENSATION: That amount of Compensation includible in the Participant's federal gross income, determined without regard to any community property laws, Includible Compensation does not include deferrals under this Plan or any other amounts excludable from the Participant's gross income under other provisions of the Code. 1.10 INVESTMENT PRODUCT: Any product offered through an Approved institution and authorized by the Plan Administrator for investment of a Deferred Compensation Account, provided that such product conforms to the requirements prescribed by law. 1.11 NORMAL RETIREMENT AGE: The Normal Retirement Age is age 70¼ unless another age is determined as follows: (a) At any time or times prior to Separation from Service and prior to any use of the Catch-up Limitation provision of Section 3.03, the Participant may elect for his or her Normal Retirement Age to be any age which is (i) not earlier than the earliest age at which the Participant has the right to retire and receive unreduced retirement benefits from the Employer's basic pension plan, and (ii) not later than age 70¼. Any such election shall be made by the Participant in writing delivered to the Plan Administrator. (b) If a Participant continues in the service of the Employer after age 70¼ and has not used the Catch-up Limitation provision of Section 3.03, then his or her Normal Retirement Age is his or her actual date of Separation of Service or any earlier age which the Participant may elect prior to any use of the Catch-up Limitation. Any such election shall be made by the Participant in writing delivered to the Plan Administrator. (c) Once a Participant has to any extent utilized the Catch-up Limitation of Section 3.03, such Participant's Normal Retirement Age shall be determined solely by reference to that age used for purposes of Section 3.03, and may not thereafter by changed. 1.12 PARTICIPANT: Any Eligible Individual who enrolls in the Plan under Article II. 1.13 PLAN: This Deferred Compensation Plan, as set forth in this document, as the same is now or may hereafter be amended or restated. 1.14 PLAN ADMINISTRATOR: The Plan Administrator shall be the "Committee." 1.15 PLAN YEAR: The calendar year. 1.16 SEPARATION FROM SERVICE: The termination of such employee's employment with the Employer. Article II - Participation in the Plan 2.01 ENROLLMENT IN THE PLAN: Any Eligible Individual may become a Participant in the Plan by entering into a Deferral Agreement. Compensation will be deferred only after a Deferral Agreement is executed by the Participant and approved by the Plan Administrator. 2.02 MODIFICATION OF DEFERRAL AGREEMENT: A Participant may change the amount deferred with respect to Compensation not yet earned by entering into a new Deferral Agreement. Any such change will be effective the next pay period provided that the information is received two weeks prior and that such new Deferral Agreement is executed by the Participant and approved by the Plan Administrator. 2.03 REVOCATION OF DEFERRAL AGREEMENT: A Participant may discontinue deferrals with respect to Compensation not yet earned by revoking the existing Deferral Agreement. The Participant must notify the Plan Administrator of such revocation in writing. Any such revocation is effective and the Participant's full Compensation will be restored in the month following the month in which the Plan Administrator receives such written notice. 2.04 RENEWED PARTICIPATION: A Participant who has ceased to be an active Participant on account of a revocation of his or her Deferral Agreement or a Separation from Service may again become an active Participant in the Plan under Section 2.01 at any time he or she is an Eligible Individual. Article III - Deferrals Limits 3.01 MINIMUM DEFERRAL: The minimum amount, which may be deferred under any Deferral Agreement, is $25.00 per month. 3.02 MAXIMUM ANNUAL DEFERRAL: Except as provided in Section 3.03, the maximum amount which may be deferred under the Plan for any taxable year of the Participant is the lesser of.' (a) the dollar limit of Code Section 457(b)(2)(A) adjusted for inflation in the same manner as under Code Section 415(d)in $500 increments ($8,000 for 1998); or (b) 33V3 % of the Includible Compensation of the Participant for the year. 3.03 CATCH-UP LIMITATION: The maximum amount which may be deferred under the Plan for each of the last three taxable years of the Participant ending prior to but not including the year the Participant attains Normal Retirement Age is the lesser of: (a) $15,000; or (b) the sum of the Normal Limitation set forth in Section 3.02 plus the Prior Underutilized Limitation described in Section 3.04. A participant may elect to utilize the Catch-up Limitation with respect to only one Normal Retirement Age in this Plan or any other similar plan notwithstanding the fact that the Participant may have utilized the Catch-up Limitation in less than all of the three eligible years. 3.04 PRIOR UNDERUTILIZED LIMITATION: The Prior Underutilized Limitation is so much of the Normal Limitation which has been underutilized in all prior taxable years since January 1, 1979, provided that: (a) during any portion of that taxable year, the Participant was eligible to participate in the Plan or any similar plan of the same Employer or of another state or local government employer in the same state; and (b) during that taxable year, the Plan or similar plan was subject to Code Section 457. 3.05 COORDINATION WITH OTHER DEFERRALS: The Limitations of Sections 3.02 and 3.03 are reduced by any amounts excluded from the Participant's gross income for such taxable year as: (a) contributions to a tax sheltered annuity contract or custodial account described in Code Section 403(b); (b) elective contributions under a cash or deferred arrangement described in Code Section 401 (k); (c) elective contributions under a salary reduction Simplified Employee Pension (SEP) Plan described in Code Section 408(k); (d) elective contributions to an individual retirement arrangement (IRA) under a Savings Incentive Match Plan for Employees (SIMPLE) described in Code Section 408(p); or (e) deductible contributions to an employee trust described in Code Section 501©(18). In addition, the dollar limitations of Sections 3.02(a) and 3.03(a) above are reduced by an amounts deferred for such taxable year under any other Code Section 457 plan. 3.06 COMPENSATION AT PRESENT VALUE. For the purpose of applying the limits of this Article III, compensation deferred under any plan shall be taken into account at its present value in the year allocated to the Participant or in such later year in which it becomes vested. 3.07 ADJUSTMENT OF DEFERRAL AGREEMENTS. The Plan Administrator may adjust any Deferral Agreement to disallow any deferral of Compensation under the Plan in excess of the limitations stated above. However, neither the Employer nor the Plan Administrator shall be held liable to a Participant if the Plan Administrator fails to disallow an excess deferral elected under any Deferral Agreement. Article IV- Deferred Compensation Accounts 4.01 ACCOUNTS ESTABLISHED. The Employer shall establish a Deferred Compensation Account for each Participant. Each Deferred Compensation Account shall be part of an annuity contract, trust, or custodial account with an Approved Institution meeting the requirements of Code Section 457(g) and held for the exclusive benefit of the Participants and Beneficiaries. The assets of any Deferred Compensation Account may not be used for or diverted to any purposes other than the provision of benefits under the Plan. 4.02 ELECTIVE DEFERRALS. The Employer shall deposit the amount deferred under a Deferral Agreement to the Deferred Compensation Account of the Participant as soon as practicable following the date on which such amount would have otherwise been paid to the Participant in the absence of the Deferral Agreement. 4.04 INCOME AND LOSS ON ACCOUNTS. The Deferred Compensation Account of each Participant shall be adjusted for the net income, gains, and losses realized by such Account. 4.05 INVESTMENT OF ACCOUNTS. Pursuant to procedures established by the Plan Administrator, each Participant may from time to time designate the Investment Product in which his or her Deferred Compensation Account will be invested. The Employer and Plan Administrator shall not be responsible for the investment or performance results of any Investment Product. The Plan Administrator may from time to time change the Investment Product(s) available under the Plan. The Participants shall have no right to require the Administrator to select or retain any Investment Product. If the Administrator eliminates an Investment Product, the Plan Administrator may require all amounts invested in that option to be reinvested in another Investment Product available under the Plan. If at any time a Participant fails to designate the Investment Product(s) in which his or her Deferred Compensation Account is to be invested or re-invested, then the Plan Administrator may make such designation. Article V- Benefits 5.01 AMOUNT OF BENEFITS. The benefits payable under the Plan to a Participant or his or her Beneficiary shall equal the balance in the Participant's Deferred Compensation Account. After benefits commence, the Participant's Deferred Compensation Account shall continue to be adjusted for the net income, gains, or losses realized by such Account. 5.02 RESTRICTIONS ON DISTRIBUTIONS. No benefits or other amounts will be payable under this Plan to a Participant or his or her Beneficiary earlier than: (a) the calendar year in which the Participant attains age 70¼; (b) the Participant's Separation from Service with the Employer; or (c) an Unforeseeable Emergency of the Participant as provided in Article VI. 5.03 FORM OF BENEFITS. Unless otherwise elected under this provision, benefits under the Plan shall be paid in the form of a lump sum. If the Deferred Compensation Account of a Participant is greater than $5,000, then, subject to the requirements of Article IV, the Participant or Beneficiary may elect to have benefits paid in any alternative form of payment available to the Participant from the Approved Institution holding the Deferred Compensation Account. To the extend permitted by the Approved Institution, the Participant may also elect to receive benefits in the form of an in-kind distribution of the assets of the Deferred Compensation Account. Any such elections must be made at least thirty (30) days prior to the date payments are to begin. 5.04 COMMENCEMENT OF BENEFITS. Benefits under the Plan shall normally be payable sixty (60) days after the close of the Plan Year in which the Participant has a Separation from Service; provided, however, the Participant may irrevocable elect, sixty (60) calendar days prior to such normal or any deferred commencement date, to defer the beginning of such payments, or any portion of such payments, to a later fixed and determinable date provided that it is no later than sixty (60) days after the end of the Plan Year in which the Participant will attain Normal Retirement Age. Only one such election may be made following the normal commencement date. 5.05 MINIMUM DISTRIBUTIONS DURING LIFE. The Required Beginning Date for a Participant is April 1 following the later of the calendar year in which the Participant attains age 70¼ or the calendar year of the Participant's Separation from Service. No later than the Required Beginning Date: (a) the entire Deferred Compensation Account of a Participant must be paid in full; or (b) distributions from the Deferred Compensation Account of a Participant must begin in the form of periodic payments made at least annual (i) for the life of the Participant or as joint and survivor payments to the Participant and the Beneficiary, or (ii) over a period certain not to exceed the life expectancy of the Participant or the joint and last survivor expectancy of the Participant and Beneficiary. All distributions made hereunder shall be made in accordance with the requirements of Code Section 401 (a)(9), including the incidental death benefit requirements of Code Section 401 (a)(9)(G), and the regulations thereunder, including the minimum distribution incidental benefit requirements of Section 1.401 (a)(9)-2 of the Proposed Income Tax Regulations. 5.06 MINIMUM DISTRIBUTIONS AFTER DEATH. If a Participant dies after the Required Beginning Date or after payments begin irrevocably (subject to acceleration), the remaining portion of the Deferred Compensation Account of the Participant must continue to be distributed at least as rapidly as under the method of distribution being used prior to the Participant's death. All payments made after the death of the Participant must continue to meet the incidental death benefit requirements of Code Section 401 (a)(9)(G) and Section 1.401 (a)(9)-2 of the Proposed Income Tax Regulations. If a Participant dies before the Required Beginning Date and before payments begin irrevocably, the Deferred Compensation Account of the Participant must be paid either: (a) in full by December 31 of the fifth calendar year after the Participanrs death; or (b) if the Participant's spouse is not the sole Beneficiary, over a period certain not greater than fifteen (15) years and not greater than the life expectancy of the Beneficiary, with payments beginning by December 31 of the first calendar year after the Participanrs death; or (c) if the Participanrs spouse is the sole Beneficiary, over the life of the spouse Beneficiary or over a period certain not greater than the life expectancy of the spouse Beneficiary, with payments beginning by December 31 of the later of the first calendar year after the Participant's death or the calendar year in which the Participant would have attained age 70¼. 5.07 LIFE EXPECTANCY CALCULATIONS. For the purpose of Sections 5.05 and 5.06, life expectancies are computed using the expected return multiples in Tables V and VI of Section 1.72-9 of the Income Tax Regulations. The life expectancies of the Participant and a spouse Beneficiary shall be recalculated annually unless periodic payments for a fixed period begin irrevocably (subject to acceleration) by the date payments are required to begin. The life expectancy of any other Beneficiary may not be recalculated. Any life expectancy which is not being recalculated shall be determined using the attained age of the individual in the calendar year in which payments are required to begin or in any eadier year in which payments begin irrevocably, and any payment calculations for subsequent years shall be based on such life expectancy reduced by one for each calendar year which has elapsed since the calendar year such life expectancy was first determined. 5.08 SUBSTANTIALLY EQUAL BENEFIT PAYMENTS. If benefits under the Plan are payable to a Participant or Beneficiary over a period of more than one year, such payments must be made at least annually and must not increase or may increase only as provided in Q&A F-3 of Section 1.401 (a)(9)-1 of the Proposed Income Tax Regulations. Article VI - Withdrawals for Unforeseeable Emergencies 6.01 WITHDRAWALS FOR UNFORESEEABLE EMERGENCY. The Participant may withdraw an amount from his or her Deferred Compensation Account to the extent that the Plan Administrator determines that such amount is reasonably necessary to satisfy an unforeseeable emergency of the Participant. The emergency need must be one that cannot reasonably be relieved through reimbursement or compensation by insurance or otherwise, liquidation of the assets of the Participant or those of the Participant's spouse or minor children (to the extent that such a liquidation would not itself cause severe financial hardship), other distributions or loans from any employer plan, cessation of elective or voluntary contributions to any employer plan, or borrowing from banks, credit unions, or other commercial sources, or any combination of the foregoing. 6.02 UNFORESEEABLE EMERGENCY DEFINED. For purposes of this Article VI, the term "unforeseeable emergency" means a severe financial hardship caused by a sudden and unexpected illness or accident incurred by the Participant or the Participant's spouse or dependent (as defined in Code Section 152(a)), loss of the Participant's property due to casualty, or other similar extraordinary and unforeseeable circumstances arising from events beyond the Participant's control. This does not include foreseeable expenditures normally budgetable, such as the purchase of a home or automobile or school expenses, nor does it include a divorce or separation. 6.03 EFFECT ON BENEFITS. A withdrawal for an unforeseeable emergency may be made before or after benefits under Article IV, however, the terms of an optional form of payment may limit the availability of such a withdrawal. In no event shall the amount of a withdrawal for unforeseeable emergency exceed the balance in the Deferred Compensation Account at the time of withdrawal, and any remaining benefits payable from the Deferred Compensation Account will be appropriately reduced to reflect the withdrawal. Article VIII - Plan to Plan Transfers 8.01 TRANSFERS ACCEPTED. This Plan shall accept transfers of a Participant's deferred compensation account from another eligible plan of deferred compensation under Section 457 of the Code and maintained by another employer, provided that such amount is not includible in the Participant's income at any time prior to such transfer. Any such transfer shall be in cash or in such form as the Plan Administrator may determine acceptable. Any amounts transferred to the Plan shall be held and administered under the terms of this Plan. 8.02 TRANSFERS PERMITTED. A Participant who has had a Separation from Service and is employed by or performs services for another employee may elect to have his or her Deferred Compensation Account transferred to an eligible plan of deferred compensation maintained by such employer under Section 457 of the Code, provided such other plan accepts such transfers. The Participant's election to transfer must be made prior to the date benefits would otherwise become payable under this Plan as a result of Separation from Service. Article IX - Administration 9.01 DUTIES OF THE PLAN ADMINISTRATOR. The Plan Administrator, the "Committee," shall represent the Employer in all matters concerning the administration of this Plan. The Plan Administrator shall have full power and authority: (a) to adopt rules and regulations for the administration of the Plan, provided they are not inconsistent with the provisions of the Plan, Code Section 457 or any Treasury regulations promulgated thereunder or any other applicable law: (b) to interpret, alter, amend, or revoke any rules and regulations so adopted; (c) to enter into contracts on behalf of the Employer with respect to this Plan; (d) to enter into Deferral Agreements on behalf of the Employer; (e) to make discretionary decisions under this Plan; (f) to demand satisfactory proof of the occurrence of any event that is a condition precedent to the payment of any benefit under the Plan; (g) to perform any and all administrative duties under this Plan; and (h) to make any determinations under the Plan in the sole discretion of the Plan Administrator. Except as expressly provided herein, every action taken by the Committee shall be final and binding on all parties, and shall be presumed to be a fair and reasonable exercise of the authority vested in or the duties imposed upon the Plan Administrator. The Committee shall be deemed to have exercised reasonable care, diligence, and prudence and to have acted impartially as to all persons interested, unless the contrary be proven by affirmative evidence. The Plan Administrator shall not be liable for amounts payable under the Plan. 9.02 CONFLICTS OF INTEREST. The Plan Administrator, or any individual acting on behalf of the Plan Administrator, may also be a Participant in the Plan, but such individual shall not be entitled to participate in discretionary decisions relating to such individual's own participation in the Plan. 9.03 ADMINISTRATIVE COSTS. The internal costs related to any Investment Pool shall be charged to those Deferred Compensation Accounts which invest in it. Other administrative costs of the Plan may be paid by the Employer, or if not, shall be charged to the Deferred Compensation Accounts on a pro rata basis. 9.04 CLAIM PROCEDURES. Claims for benefits under the Plan shall be filed with the Plan Administrator in writing on such forms as the Plan Administrator may designate. The Plan Administrator shall furnish the claimant with written notice of the disposition of his or her claim within ninety (90) days. If special circumstances require and timely notice is given by the Plan Administrator to the claimant, the period for response may be extended for an additional ninety (90) days. If the claim is denied, such notice shall set forth the reasons for the denial, cite pertinent provisions of the Plan, describe the claim review procedures, and, where appropriate, provide and explanation of how the claim may be perfected. 9.05 CLAIM REVIEW PROCEDURES. If a claim has been denied in whole or in part under Section 9.04, the claimant or his or her authorized representative may request that the Plan Administrator give further consideration to such claim by filing a written request for review within sixty (60) days of receipt of the notice of denial. Such request shall include a written statement of the reasons why the claimant believes the denial to have been in error, and shall include any and all evidence in support of the claim. The Plan Administrator shall notify the claimant of the final decision on his or her claim in writing within sixty (60) days of the receipt of the request for review. If special circumstances require and timely notice is given by the Plan Administrator to the claimant, the period for a final decision may be extended for an additional sixty (60) days. The notice shall set forth the reasons for the final decision and cite pertinent provisions of the Plan. Article X - Assignment of Benefits 10.01 ASSIGNMENTS PROHIBITED. No Participant or Beneficiary shall have any right to commute, sell, assign, pledge, transfer, or otherwise convey or encumber the right to benefits under this Plan, which benefits are expressly declared to be unassignable and non-transferable, and any attempt to do so shall be void. The benefits under this Plan shall not be subject to attachment, garnishment, or execution for the payment of any debts, judgments, alimony, or separate maintenance owed by the Participant or Beneficiary, or be transferable by operation of law in the event of bankruptcy or insolvency, to the fullest extent permitted by law. Article XI - Plan Assets All Deferred Compensation Accounts under the Plan, and all property and rights which may be purchased with such Accounts, and all income attributable to such Accounts, shall remain (until made available to the Participant or Beneficiary) solely the property and rights of the Plan and shall not be subject to the claim of general creditors of the Employer. Article XII - Amendment or Termination of Plan 12.01 AMENDMENT OR TERMINATION. The Employer may amend or terminate the Plan at any time; provided, however, no termination or amendment shall affect the rights of a Participant or Beneficiary to the balance in his or her Deferred Compensation Account. 12.02 EFFECT OF TERMINATION. Upon any termination of the Plan, the Participants in the Plan will be deemed to have withdrawn from the Plan as of the date of such termination and each Deferral Agreement shall be canceled. The full Compensation of all Participants will be thereupon restored on a non-deferred basis. The Plan Administrator shall not distribute Plan benefits at the time of such termination; but shall retain all Deferred Compensation Accounts until benefits are payable under the terms of Article V or Article VI of the Plan. Article XIII - Relationship to other Plans It is intended that, pursuant to Section 457 of the Code, Compensation deferred under the Plan will not be considered current compensation for purposes of Federal income taxation. Such amounts will, however, be included as compensation to the extent required under the Federal Insurance Contributions Act (FICA). Payments under this Plan will supplement retirement and death benefits under the Employer's group insurance and retirement plans, if any. Article XIV - Interpretation 14.01 CONSISTENCY WITH SECTION 457. This Plan is intended to be an eligible deferred compensation plan within the meaning of Section 457 of the Code, and shall be interpreted so as to be consistent with such Code Section and all regulations promulgated thereunder. 14.02 NOT EMPLOYMENT CONTRACT. Nothing contained in this Plan shall be deemed to constitute an employment contract or agreement for services between the Participant and the Employer nor shall it be deemed to give a Participant any right to be retained in the employ of, or under contract to, the Employer. Nothing herein shall be construed to modify the terms of any employment contract or agreement for services between a Participant and the Employer other than to modify the time for payment of Compensation deferred under this Plan. 14.03 INVESTMENTS NOT GUARANTEED. The Employer, the Plan Administrator, and their agents, employees, or representatives, do not make any endorsement, guarantee, or any other representation, and shall not be liable to the Plan or to any Participant, Beneficiary, or any other person, with respect to the financial soundness, investment performance, fitness, or suitability of any Investment Product offered under the Plan. 14.04 NUMBER AND GENDER. Words used herein in the singular shall include the plural and the plural the singular where applicable, and one gender or the neuter shall include the other gender or the neuter where appropriate. 14.05 HEADINGS. The headings of articles, sections, or other subdivisions hereof are included solely for convenience of reference, and if there is any conflict between such headings and the text of the Plan, the text shall control. 14.06 STATE LAW. The Plan shall be construed under the laws of Washington. IN WITNESS WHEREOF, the Employer has caused this Plan to be executed by its duly authorized officer(s) on the 5th day of April , 19 99 Witness: City of Auburn: .~_~~ Title: City Clerk Title: Mayor