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ORDINANCE NO. Q 2 º ª
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, ANNOUNCING ITS INTENTION TO INLCUDE A NUMBER OF
NEW PROVISIONS IN THE CITY'S DEFERRED COMPENSATION PLAN
DOCUMENT, ADOPTED UNDER ORDINANCE NO. 3644, AS AMENDED, TO
BE REWRITTEN OR AMENDED AND APPROVED NO LATER THAN
DECEMBER 31,2002
WHEREAS, Auburn City Council, at its regular meeting of June 15, 1981,
adopted Ordinance 3644 which adopted a deferred compensation plan for the
City of Auburn; and
WHEREAS, the Economic Growth and Tax Relief Reconciliation Act
(EGTRRA) of 2001 has provided a number of enhancements to Section 457 of
the Internal Revenue Code; and
WHEREAS, these enhancements, if adopted, are beneficial to the City of
Auburn; and
WHEREAS, adoption of these enhancements makes it necessary to
restate the Plan under Section 457 of the Internal Revenue Code; and
WHEREAS, these enhancements become effective and should be made
available to employees on January 1, 2002; and
WHEREAS, the deferred compensation providers must be prepared to
provide to City of Auburn customers, on January 1, 2002, the enhancements
the City of Auburn chooses to include in its deferred compensation plan; and
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November, 13,2001
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WHEREAS, the City of Auburn needs to let its providers know the City's
intentions, so they will have lead time to implement those intentions; and
WHEREAS, guidance from the federal government and its agencies
continues to be forthcoming, and the formal plan language does not have to be
completed until December 31,2002, and the specific wording of the plan should
be reviewed by appropriate legal counsel for proper wording, prior to
acceptance as an ordinance.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON DOES ORDAIN AS FOLLOWS:
Section 1. Purpose: The purpose of this Ordinance is to define the
City of Auburn intention to include the following enhancements to its deferred
compensation plan under Section 457 of the Internal Revenue Code:
1. Permit maximum regular deferral limit in accordance with EGTRRA
provisions.
2. Allow eligible contributors who turn age 50 or over during the
calendar year to contribute an additional amount, above the
maximum as stated in the provisions of #1 above, into the plan for
all years except during the three years prior to normal retirement
age while they are utilizing the regular Section 457 catch up
provision, in accordance with EGTRRA provisions.
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November, 13,2001
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3. Permit plan assets to remain tax deferred until actually distributed
from the plan, treat all current irrevocable elections as null and void,
and allow non-spouse beneficiaries to take distributions over his/her
life expectancy rather than 15 years, in accordance with EGTRRA
provisions.
4. Allow 457 plan participants to request a trustee-to-trustee transfer of
assets from their 457 accounts to a government defined benefit plan
for the purchase of permissible service credit, in accordance with
EGTRRA provisions.
5. Permit the plan to accept rollover contributions, at any time, from
other types of employer-sponsored plans, including 401 (a), 401 (k),
and 403(b) plans and IRAs, in accordance with EGTRRA
provisions.
6. Permit the plan to accept qualified domestic relations orders
pursuant to amended IRC section 414(p)(11) to transfer all or a
portion of the participant's account to the alternate payee pursuant
to divorce and allow for immediate payments to alternate payees
and tax report such distributions to former spouse alternate payees,
in accordance with EGTRRA provisions.
Section 2. Constitutionalitv or Invaliditv: If any section, subsection,
clause, phrase, or sentence of this Ordinance is, for any reason, held to be
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November, 13,2001
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invalid or unconstitutional, the remaining portions of this ordinance shall remain
in force and effect.
Section 3. Implementation: The Mayor is hereby authorized to
implement such administrative procedures as may be necessary to carry out
the directives of this legislation.
Section 4. Effective Date: This Ordinance shall take effect and be in
force five (5) days from and after its passage, approval, and publication as
provided by law.
INTRODUCED: November 19, 2001
PASSED: November 19, 2001
APPROVED: November 19, 2001
Q~~~q\ lác~
CHARLES A. BOOTH
MAYOR
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November, 13, 2001
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AT.T. EST: . \ 1 (J 1
Á~!d~
Óanielle E. Daskam,
City Clerk
~~FORM:
/Michael J. Reynolds,
City Attorney
Published: / / Ie; 5/0 I
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Ordinance 5609
November, 13, 2001
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