Source: http://www.ncompliance.com/guest_employerplandoc.aspx?EmployerID=72
Timestamp: 2014-11-28 02:56:29
Document Index: 381931735

Matched Legal Cases: ['§1', '§1', '§ 1', '§ 1', '§ 1', '§ 1', '§ 1', '§ 1', '§ 1', '§ 1']

Mukilteo School District No. 6, Snohomish County, Washington (the "Employer") Also known as Mukilteo School District Hereinafter Mukilteo Anticipated Effective Date: No later than 12/31/2008.
Mukilteo-specific information applied/applies to this Plan during the period from 11/24/2008 until A New Plan Document Iteration is Adopted.
Mukilteo-specific information for this Plan was last updated 11/25/2008.
Explanation of changes made from the previous Plan Document version for Mukilteo: Version 9 adopted by the Board on 11-24-2008.
(a) Effective Date: The effective date of this Plan Document is the date on which it was adopted by the Board of Directors for Mukilteo, which was: 11/24/2008
(b) Applicability Date for Optional Features 1.1(a), (b), (c), (d), (f), (g), (h), (i), (j), (m), and (n): The earlier of 11/24/2008 and 1/1/2009.
(c) Date Carruth Compliance Consulting, Inc. ("CCC") will begin administering Optional Features 1.1(a), (b), (c), (d), (f), (g), (h), (i), (j), (m), and (n): The latter of 11/24/2008 and 1/1/2009
(e) Date Carruth Compliance Consulting, Inc. ("CCC") will begin administering Optional Features 1.1(e), (k), and (l): The latter of 9/25/2007 and 7/25/2008 (the date Mukilteo became or becomes a CCC Full Service or Transitional Agreement Client).
(a) Initial List of Vendors Holding Active and Inactive Payroll Slots: By holding either an Active or Inactive Payroll Slot in the Plan, a Vendor is eligible to receive current Contributions under the Plan. However, only Vendors Holding Active Payroll Slots are eligible to enroll new Participants one-at-a-time. Vendors Holding Inactive Payroll Slots may continue to receive current Contributions from Participants already making Contributions to the Vendor, but must enroll a sufficient number of new Participants all at one time to reach 5 active contributors to become eligible to enroll new Participants one-by-one. The initial lists of Vendors to Hold Active and Inactive Payroll Slots were specified by Mukilteo using criteria chosen by Mukilteo. Upon adoption of this Plan Document the selected Vendors were or will be contacted by CCC to secure Hold Harmless Agreements, Information Sharing Agreements, specimen copies of annuity contracts and custodial account agreements, and general public Vendor information for the CCC website. Only those Vendors that enter into Hold Harmless and Information Sharing Agreements with Mukilteo, either indirectly via CCC umbrella agreements or directly via Vendor agreements designating CCC as agent for Mukilteo, provide specimen copies of their annuity contracts and/or custodial account agreements, and provide general public Vendor information for the CCC website were or will be actually granted Payroll Slots on the initial list of Vendors Holding Payroll Slots under the new 403(b) Regulations. The list of all Vendors with Payroll Slots for all CCC client employers is maintained on the CCC website at the Internet address below, is kept current whenever new employers and/or Vendors are added and/or removed, and the list for Mukilteo contained therein is hereby incorporated by reference:
www.ncompliance.com/guest_employervendors.aspx?EmployerID=72
(i) Enter into Hold Harmless and Information Sharing Agreements with Mukilteo, either indirectly via Umbrella Agreements between Vendor and Carruth Compliance Consulting, Inc. ("CCC") or directly via Vendor Agreements that specify CCC as agent for Mukilteo;
(iii) Provide basic information (for example: contact details, any contribution minimums, links to forms, etc.) requested by CCC for inclusion on the CCC website section dedicated to Mukilteo;
(iv) Submit Salary Reduction Agreements for 5 Employees of Mukilteo, along with documentation that Vendor accounts have been established and will accept contributions on behalf of the corresponding Employees.
(vi) Notwithstanding Sections 1.3(b)(i) through 1.3(b)(v) above, the Executive Director, Business Services has the authority to grant an Active Payroll Slot to a Vendor and/or remove an Active Payroll Slot from a Vendor.
(a) Employer: Mukilteo shall be responsible for providing meaningful notification that all of its Employees are eligible for participation in the Plan, to ensure that employees have at least an annual effective opportunity to make, revoke, or modify a deferral election, to maintain on file currently applicable Salary Reduction Agreements for all Participants, to remit Contributions to Vendors in a timely manner, to provide payroll and human resources data to CCC as necessary for monitoring contributions for compliance, and to perform other plan administration functions as directed by CCC.
(b) Third Party Administrator: Carruth Compliance Consulting, Inc. ("CCC") provides compliance assurance and certain plan communication and administration services to Mukilteo on a contractual basis. As such, CCC shall be responsible for monitoring contributions for compliance with contribution limits, for providing draft eligibility notification announcements to Mukilteo at least annually, for maintaining Hold Harmless and Information Sharing Agreements with Vendors associated with the Plan, and to provide Plan information to Employees, Participants, and Vendors in a dedicated section of the CCC website at the following Internet address:
www.ncompliance.com/guest_employerplan.aspx?EmployerID=72 (c) Plan Administrator: The Plan Administrator, an Employee of Mukilteo, shall be responsible for ensuring that responsibilities of Mukilteo under the Plan are properly performed. The Plan Administrator shall be the Employee of Mukilteo holding the administrative position specified below:
(d) CCC Coordinator: The CCC Coordinator, an Employee of Mukilteo, shall be the conduit for all communications between Mukilteo and CCC and shall ensure that the Plan Administrator and other CCC Contacts (also Employees of Mukilteo) are appropriately informed about Plan responsibilities. The Plan Administrator may, but need not be, the CCC Coordinator. The CCC Coordinator shall be the Employee of Mukilteo holding the administrative position specified below:
(e) Vendor: Each Vendor associated with the Plan shall be responsible for ensuring that all Investment Arrangements provided by Vendor comply with Section 403(b) of the Code and for complying with the terms of the Hold Harmless and Information Sharing Agreements between Vendor and Mukilteo, such agreements being either indirect via CCC umbrella agreements or directly via Vendor agreements that designates CCC as responsible party on behalf of Mukilteo. Also, Vendor shall be responsible for providing basic public information requested by CCC for inclusion on the CCC website, such CCC requested information to be used for the purposes of proper administration of the Plan and providing information to Employees about the Vendor's products, services, and local contacts. Finally, Vendor shall be responsible for collecting and maintaining Beneficiary information, via Vendor enrollment forms and Beneficiary change forms.
(f) Participant: Participants shall be responsible for establishing Investment Arrangements with Vendors before submitting Salary Reduction Agreements to Mukilteo to initiate deferrals, for submitting revised Salary Reduction Agreements to modify or cancel existing Salary Reduction Agreements, and for carefully reviewing requirements for all contemplated transactions, including Hardship Distributions and Loans. Neither Mukilteo nor CCC will provide advice to Employees regarding investment options, nor can either Mukilteo or CCC be held responsible for poor investment choices made by Participants.
The Plan is funded through one or more annuity contracts and/or custodial accounts described in Section 403(b) of the Code and authorized by Mukilteo (hereinafter, the “Investment Arrangements”) offered by Vendors selected by Mukilteo ("Vendors"). Vendors maintain lists of Investment Arrangements available for Participant investments in the Plan for Mukilteo. CCC maintains a list of Vendors associated with the Plan for Mukilteo in various capacities. The list of Vendors associated with the Plan for Mukilteo is kept current and updated by CCC whenever Vendor-to-CCC, Vendor-to-employer, and/or employer-to-CCC relationships change, at the following Internet address, which is hereby incorporated by reference:
www.ncompliance.com/guest_employervendors.aspx?EmployerID=72 Purchase payments under the Investment Arrangements generally are made pursuant to participating employees' salary reduction agreements and may also include Employer Contributions as specified in Section 4 of this document.
The Plan Administrator shall be the Employee of Mukilteo holding the administrative position specified below:
A nontransferable contract as defined in Section 403(b)(1) of the Code, established for each Participant by Mukilteo, or by each Participant individually, that is issued by an insurance company qualified to issue annuities in the State of Washington and that includes payment in the form of an annuity.
An Oregon Corporation under contract with Mukilteo to serve as Third Party Administrator for the Plan and provide various compliance assurance, plan communication, and plan administration services to Mukilteo. In particular, CCC is responsible for maintaining this Plan Document and incorporating changes in applicable sections of the Internal Revenue Code, Treasury Regulations, Revenue Procedures, Revenue Rulings, and other regulatory activity.
Does the Plan for Mukilteo allow Age 50 Catch-up Elective Deferral Contributions? Yes
Does the Plan for Mukilteo allow the Special Section 403(b) Catch-up Limitation for Employees with 15 Years of Service? Yes
All cash compensation for services to Mukilteo, including salary, wages, fees, commissions, bonuses, and overtime pay, that is includible in the Employee's gross income for the calendar year, plus amounts that would be cash compensation for services to Mukilteo includible in the Employee's gross income for the calendar year but for a compensation reduction election under section 125, 132(f), 401(k), 403(b), or 457(b) of the Code (including an election under Section 3 made to reduce compensation in order to have Elective Deferrals under the Plan).
The exchange of some portion of an Account Balance held by one Vendor Associated with the Plan into an Account of a different Vendor Associated with the Plan that is eligible to receive Exchanges, Transfers, and/or Rollover Contributions into the Plan, as described in Treas. Reg. §1.403(b)-4(c)(3). Does the Plan for Mukilteo allow Contract and Custodial Account Exchanges? Yes
Does the Plan for Mukilteo allow Employer Contributions? Yes
Does the Plan for Mukilteo allow Employer Discretionary Contributions? Yes
Does the Plan for Mukilteo currently involve Employer Discretionary Contributions? Yes
Does the Plan for Mukilteo allow Employer Matching Contributions? No
Does the Plan for Mukilteo currently involve Employer Matching Contributions? No
Does the Plan for Mukilteo allow Employer Post-Severance Contributions? No
Does the Plan for Mukilteo currently involve Employer Post-Severance Contributions? No 2.15 CUSTODIAL ACCOUNT.
The group or individual custodial account or accounts, as defined in section 403(b)(7) of the Code, established for each Participant by Mukilteo, or by each Participant individually, to hold assets of the Plan.
Does the Plan for Mukilteo allow Designated Roth Contributions? No
Does the Plan for Mukilteo allow Direct Rollover Contributions To the Plan? Yes
at the election of the Participant in lieu of receiving cash compensation. Elective Deferrals include pre-tax salary reduction contributions and may or may not include Designated Roth Contributions, at the election of Mukilteo.
Each individual, whether appointed or elected, who is a common law employee of Mukilteo performing services for a public school as an employee of Mukilteo. This definition is not applicable unless the employee’s compensation for performing services for a public school is paid by Mukilteo. Further, a person occupying an elective or appointive public office is not an employee performing services for a public school unless such office is one to which an individual is elected or appointed only if the individual has received training, or is experienced, in the field of education. A public office includes any elective or appointive office of a State or local government.
Also known as Mukilteo School District Herein appearing as Mukilteo Notwithstanding anything herein to the contrary, with the consent of Mukilteo and Insurer (or Trustee, if applicable), any Affiliated Employer may adopt this Plan and all of the provisions hereof, and participate herein and be known as a Participating Employer, by a properly executed document evidencing said intent and will of such Participating Employer.
Contributions made to the Plan by Mukilteo, without reduction to the Participant's salary, and not subject to any requirements that the Participant make Elective Deferrals. Such contributions, if permitted under the Plan and properly authorized by Mukilteo, may, at the election of Mukilteo, be made in any form and at any time otherwise permitted under the Code and under supplemental documentation of Mukilteo.
Contributions made to the Plan by Mukilteo, without reduction to the Participant's salary, but subject to certain requirements that the Participant make Elective Deferrals. Such contributions, if permitted under the Plan and properly authorized by Mukilteo, shall be made in a form and at a time permitted under the Code and specified under supplemental documentation of Mukilteo.
The Annuity Contracts or Custodial Accounts issued for funding amounts held under the Plan and specifically approved by Mukilteo for use under the Plan.
A Vendor that received at least one 90-24 Transfer under the Plan prior to 9/25/2007, but that has not received Contributions into any Account for any Participant under the Plan for Mukilteo since 12/31/2004.
A distribution that satisfies the “safe harbor” standards with respect to establishing an immediate and heavy financial need under Treas. Reg. §1.401(k)-1(d)(3)(iii)(B) and, except as the Vendor specifically agrees to administer under another permitted standard, satisfying the lack of other resources requirement (under Treas. Reg. 1.401(k)-1(d)(3)(iv)(E)) including the Vendor notifying Mukilteo of the withdrawal in order for Mukilteo to implement the resulting 6-month suspension of the Participant’s right to make Elective Deferrals under the Plan or any other Plan of Mukilteo. Does the Plan for Mukilteo allow Hardship Distributions? Yes
An Employee’s actual wages in box 1 of Form W-2 for a year for services to Mukilteo, but subject to a maximum of $200,000 (or such higher maximum as may apply under Section 401(a)(17) of the Code) and increased (up to the dollar maximum) by any compensation reduction election under section 125, 132(f), 401(k), 403(b), or 457(b) of the Code (including any Elective Deferral under the Plan). The amount of Includible Compensation is determined without regard to any community property laws. It is important to note that Includible Compensation for the purposes of Code Section 415(c) is the amount of compensation which is received from Mukilteo and which is includible in gross income for the most recent period (ending not later than the close of the taxable year) which may be counted as one year of service, and which precedes the taxable year by no more than five years.
The agreements between a Vendor and Mukilteo or a Participant that constitutes or governs a Custodial Account or an Annuity Contract.
An Annuity Contract or Custodial Account issued in an exchange permitted under Rev. Rul. 90-24 after 9/24/2007 and before 1/1/2009 and provided by a Vendor that neither is eligible to receive contributions as part of the plan nor has an Information Sharing Agreement with Mukilteo as of 1/1/2009, either indirectly via umbrella CCC agreement or directly via Vendor agreement that designate CCC as an agent for Mukilteo and information sharing party on behalf of Mukilteo.
A Vendor whose only connection with Mukilteo Plan involves Intermediate Contracts. An Intermediate Vendor has not received contributions in the Plan since 12/31/2004, is not eligible to receive contributions in the Plan beginning 1/1/2009, has not entered into an Information Sharing Agreement with Mukilteo by 12/31/2008, either indirectly via umbrella CCC agreements or directly via agreements that designate CCC as an agent for Mukilteo and information sharing party on behalf of Mukilteo, but has received Contract Exchanges, Plan-to-Plan Transfers Into, and/or Rollover Contributions Into the Plan between 9/25/2007 and 12/31/2008.
An Annuity Contract or a Custodial Account offered by a Vendor that Mukilteo has designated as a Vendor Associated with the Plan. CCC shall maintain an ongoing list of all Vendors Associated with the Plan. Participants may select one or more Investment Arrangements on a Salary Reduction Agreement specified by Mukilteo, and shall be solely responsible for directing the Vendor of the Investment Arrangement as to their investment selections within the Investment Arrangement. The Vendors shall be responsible for administering the terms of their respective Annuity Contracts and/or Custodial Accounts.
An Account that has received contributions under the Plan between 1/1/2005 and 12/31/2008 and is maintained by a Vendor that has not received Contributions into any Account for any Participant under the Plan for Mukilteo since 12/31/2008.
403(b) Plan of Mukilteo School District No. 6, Snohomish County, Washington.
A direct transfer from a 403(b) plan of a different employer into the 403(b) Plan for Mukilteo, as authorized by § 1.403(b)-10(b)(3) of the Income Tax Regulations.
Does the Plan for Mukilteo allow Plan-to-Plan Transfers To the Plan? Yes
A direct transfer fromthe 403(b) Plan for Mukilteo into the 403(b) plan of a different employer, as authorized by § 1.403(b)-10(b)(3) of the Income Tax Regulations.
Does the Plan for Mukilteo allow Plan-to-Plan Transfers From the Plan? Yes
Mukilteo and any other entity which is under common control with Mukilteo under Section 414(b) or (c)) of the Code. For this purpose, Mukilteo shall determine which entities are Related Employers based on a reasonable, good faith standard and taking into account the special rules applicable under Notice 89-23, 1989-1 C.B. 654.
Does the Plan for Mukilteo allow Eligible Rollover Contributions to the Plan? Yes
See Designated Roth Contributions in Section 2.16. Does the Plan for Mukilteo allow Roth Contributions? No
A legal agreement between Mukilteo and a Participant that specifies the amount by which the Participant's salary is to be reduced, the Vendor or Vendors to which contributions are to be remitted, and other pertinent information required for proper administration of the Plan. The Salary Reduction Agreement for the Plan is available online at the following Internet address, and is included by reference:
www.ncompliance.com/guest_employersra.aspx?EmployerID=72 2.50 SEVERANCE FROM EMPLOYMENT.
For purpose of the Plan, Severance from Employment means Severance from Employment with Mukilteo and any Related Entity. However, a Severance from Employment also occurs on any date on which an Employee ceases to be an employee of a public school, even though the Employee may continue to be employed by a Related Employer that is another unit of the State or local government that is not a public school or in a capacity that is not employment with a public school (e.g., ceasing to be an employee performing services for a public school but continuing to work for the same State or local government employer).
An organization under contract with Mukilteo to provide various compliance assurance, plan communication, and plan administration services to Mukilteo. Carruth Compliance Consulting, Inc. ("CCC") serves as Third Party Administrator for this Plan.
Number of active contributors required to gain an Active Payroll Slot in the Plan for Mukilteo: 5
Monthly contribution amount sufficient to grant a new Active Payroll Slot, irrespective of the number of applicants involved, in the Plan for Mukilteo: $N/A Number of active contributors required to maintain an Active Payroll Slot in the Plan for Mukilteo: 5 Number of months Vendors are given to restore an Inactive Payroll Slot to Active status in the Plan for Mukilteo: N/A
Number of months Participants are given to select a new Vendor with an Active Payroll Slot after Inactive Payroll Slot waiting period has expired in the Plan for Mukilteo: N/A
Number of active contributors required to retain a Payroll Slot of either type in the Plan for Mukilteo: 1
(a) Vendors Holding Payroll Slots: These Vendors are eligible to receive current contributions under the Plan. Such Vendors are generally divided into two groups: 1) Vendors Holding "Active" Payroll Slots; and 2) Vendors Holding "Inactive" Payroll Slots. Vendors Holding Active Payroll Slots are eligible to enroll new Participants one-at-a-time, whereas Vendors Holding Inactive Payroll Slots must enroll a sufficient number of new Participants to reach the 5 Participants required to gain an Active Payroll Slot. The list of Vendors Holding Active and Inactive Payroll Slots is maintained by CCC on behalf of Mukilteo and rules for gaining or losing a Payroll Slot are included in this Plan Document in Section 1.3. Only those Vendors that enter into Hold Harmless and Information Sharing Agreements with Mukilteo, either indirectly via CCC umbrella agreements or directly via Vendor agreements designating CCC as agent for Mukilteo, provide specimen copies of their annuity contracts and/or custodial account agreements, and provide general public Vendor information for the CCC website will be allowed to Hold a Payroll Slot of either type. The current list of Vendors with Payroll Slots in the Plan is available on the web at the following Internet address, and is included herein by reference:
www.ncompliance.com/guest_employervendors.aspx?EmployerID=72 (b) Vendors Eligible to Receive Exchanges and Transfers: All Vendors holding Payroll Slots are eligible to receive contract exchanges within the Plan, plan-to-plan transfers into the Plan, and Rollover Contributions into the Plan. Vendors that do not hold Payroll Slots become eligible to receive contract exchanges within the Plan, plan-to-plan transfers into the Plan, and Rollover Contributions into the Plan upon entering into Hold Harmless and Information Sharing Agreements with Mukilteo, either indirectly via umbrella CCC agreements or directly via agreements that designate CCC as an agent for Mukilteo and as an information sharing party on behalf of Mukilteo. The list of such Vendors is maintained and kept current by CCC on behalf of Mukilteo at the following Internet address:
www.ncompliance.com/guest_employervendors.aspx?EmployerID=72 (c) Orphaned Vendors: A good-faith effort must be made by CCC to contact these Vendors and request that they enter into Hold Harmless and Information Sharing Agreements with Mukilteo, either indirectly via umbrella CCC agreements or directly via agreements that designate CCC as an agent for Mukilteo and information sharing party on behalf of Mukilteo. The list of such Vendors is maintained and kept current by CCC on behalf of Mukilteo in the same list specified above in Section 2.53(b).
(c) Intermediate Vendors: To the extent CCC or Mukilteo is aware of Intermediate Vendors, a good-faith effort must be made by CCC to contact these Vendors and request that they enter into Hold Harmless and Information Sharing Agreements with Mukilteo, either indirectly via umbrella CCC agreements or directly via agreements that designate CCC as an agent for Mukilteo and information sharing party on behalf of Mukilteo. In any event, Mukilteo is to notify Employees of their eligibility under Section 8.03 of Rev. Proc. 2007-71 to re-exchange back into the Plan by 6/30/2009 if an inappropriate exchange, transfer, and/or rollover was processed into an Account of an Intermediate Vendor.
Each Employee shall be eligible to participate in the Plan and elect to have Elective Deferrals made on his or her behalf hereunder immediately upon becoming employed by Mukilteo. Eligible Employees shall be provided notice of the opportunity to have Elective Deferrals contributed on their behalf, of the opportunity to start, stop, or change the amount of such deferrals, and of any limitations on such opportunities, at least once in any Plan Year. A Participant shall at all times have a fully vested and nonforfeitable interest in his or her Account attributable to Elective Deferrals
Internet address for the Plan Salary Reduction Agreement for Mukilteo: www.ncompliance.com/guest_employersra.aspx?EmployerID=72
Mukilteo required minimum monthly contribution per selected Vendor: $25.00
Number of Salary Reduction Agreements allowed by Mukilteo per participant per year: Mukilteo does not limit the number of Salary Reduction Agreements a Participant may submit per year.
Number of Vendors Mukilteo Employees may select for Elective Deferrals at any given time: 2
Are Mukilteo Employees allowed to specify a % of Salary for Elective Deferrals? Yes 3.4 CHANGE IN ELECTIVE DEFERRALS ELECTION
Special Rules for Mukilteo Participants regarding Salary Reduction Agreement submission deadlines: Salary Reduction Agreements must be submitted to the District Office by the District's Payroll cutoff date for the given month. A change in the Beneficiary designation must be requested by the Participant on a Vendor Beneficiary Change form submitted directly to the Vendor and shall take effect when the election is accepted by the Vendor. The Salary Reduction Agreement for the Plan is available online at the following Internet address, and is included by reference:
www.ncompliancencompliance.com/guest_employersra.aspx?EmployerID=72 3.5 BENEFICIARY DESIGNATIONS
Mukilteo may, but need not, allow Designated Roth Contributions, subject to Section 402A.
Does the Plan for Mukilteo allow Roth Contributions? No
For purposes of Elective Deferrals to the plan, Compensation shall mean regular or base salary or wages paid by Mukilteo to an Employee for services rendered as an Employee and includible in gross income during the most recent period (ending not later than the close of the taxable year) which may be counted as one year of full-time equivalent service, and which precedes the taxable year by no more than five years. Effective for Limitation Years beginning on or after 1/1/2005, Compensation shall include Compensation paid within 2-1/2 months after severance from employment if such Compensation would have been paid if the Participant had continued employment, or if for bona fide sick, vacation, or other leave. The amount of Compensation taken into account under this Plan for any Employee for any Plan Year shall not exceed the maximum amount permitted under Section 401(17) for such Plan Year, although this restriction places no further limit on Elective Deferrals.
Does the Plan for Mukilteo allow Employer In-Service Contributions of any kind? Yes (a) Employer Discretionary Contributions. This Plan may include Employer Discretionary Contributions. If the Plan includes such contributions, Mukilteo shall determine, in its sole discretion, the amount of such contributions, if any, to be made to the Plan for each Plan Year. All Employer Contributions are results of collective bargaining agreements or individual agreements and the terms of such agreements are hereby incorporated by reference.
Does the Plan for Mukilteo currently involve Employer Discretionary Contributions? Yes (b) Employer Matching Contributions. This Plan may include Employer Matching Contributions. If the Plan includes such contributions, the associated policies are generally included in collective bargaining agreements or individual agreements and the terms of such agreements are hereby incorporated by reference.
Does the Plan for Mukilteo currently involve Employer Matching Contributions? No 4.2 EMPLOYER POST-SEVERANCE CONTRIBUTIONS.
Does the Plan for Mukilteo currently involve Employer Post-Severance Contributions? No 4.3 COMPENSATION FOR EMPLOYER CONTRIBUTIONS.
If the Plan allows Employer Contributions, for purposes of Employer Contributions to the Plan, Compensation shall mean regular or base salary or wages paid by Mukilteo to an Employee for services rendered as an Employee and includible in gross income during the most recent period (ending not later than the close of the taxable year) which may be counted as one year of full-time equivalent service, and which precedes the taxable year by no more than five years. Effective for Limitation Years beginning on or after 1/1/2005, Compensation shall include Compensation paid within 2-1/2 months after severance from employment if such Compensation would have been paid if the Participant had continued employment, or if for bona fide sick, vacation, or other leave. The amount of Compensation taken into account under this Plan for any Employee for any Plan Year shall not exceed the maximum amount permitted under Section 401(a)(17) for such Plan Year, although this restriction places no further limit on Annual Additions.
CCC shall be responsible for determining that these limits are satisfied as long as CCC is under contract with Mukilteo to provide compliance assurance services.
Because Mukilteo is a qualified organization (within the meaning of § 1.403(b)-4(c)(3)(ii) of the Income Tax Regulations), the applicable dollar amount under Section 5.2 for any “qualified employee” may be increased (to the extent provided in this Plan Document and Individual Agreements) by the least of:
(2) The total Elective Deferrals made for the employee by the qualified organization for prior years. For purposes of this Section 5.3, a “qualified employee” means an employee who has completed at least 15 years of service taking into account only employment with Mukilteo. Does the Plan for Mukilteo allow the Special Section 403(b) Catch-up Limitation for Employees with 15 Years of Service? Yes 5.4 AGE 50 CATCH-UP ELECTIVE DEFERRAL CONTRIBUTIONS.
An Employee whose employment is interrupted by qualified military service under Section 414(u) of the Code or who is on a leave of absence for qualified military service under Section 414(u) of the Code may elect to make additional Elective Deferrals upon resumption of employment with Mukilteo equal to the maximum Elective Deferrals that the Employee could have elected during that period if the Employee’s employment with Mukilteo had continued (at the same level of Compensation) without the interruption or leave, reduced by the Elective Deferrals, if any, actually made for the Employee during the period of the interruption or leave. Except to the extent provided under Section 414(u) of the Code, this right applies for five years following the resumption of employment (or, if sooner, for a period equal to three times the period of the interruption or leave).
Does the Plan for Mukilteo allow Loans? Yes
If loans are allowed under the Plan, each Vendor is responsible for all information reporting and tax withholding required by applicable federal and state law in connection with distributions and loans. To minimize the instances in which Participants have taxable income as a result of loans from the Plan, the Administrator and TPA shall take such steps as may be appropriate to coordinate the limitations on loans set forth in Section 6.3, including the collection of information from Vendors, and transmission of information requested by any Vendor, concerning the outstanding balance of any loans made to a Participant under the Plan or any other plan of Mukilteo. The Administrator or TPA shall also take such steps as may be appropriate to collect information from Vendors, and transmission of information to any Vendor, concerning any failure by a Participant to repay timely any loans made to a Participant under the Plan or any other plan of Mukilteo.
For purposes of this Section 6.3, any loan from any other plan maintained by Mukilteo and any Related Employer shall be treated as if it were a loan made from the Plan, and the Participant’s vested interest under any such other plan shall be considered a vested interest under this Plan; provided, however, that the provisions of this paragraph shall not be applied so as to allow the amount of a loan to exceed the amount that would otherwise be permitted in the absence of this paragraph.
Does the Plan for Mukilteo allow In-Service Distributions from Rollover Accounts? Yes
Does the Plan for Mukilteo allow Hardship Distributions? Yes
the Plan. (b) If Hardship Distributions are allowed under the Plan, the Individual Agreements shall provide for the exchange of information among Mukilteo, TPA, and the Vendors to the extent necessary to implement the Individual Agreements, including, in the case of a Hardship Distribution that is automatically deemed to be necessary to satisfy the Participant’s financial need (pursuant to § 1.401(k)- 1(d)(3)(iv)(E) of the Income Tax Regulations), the Vendor notifying Mukilteo of the withdrawal in order for Mukilteo to implement the resulting 6-month suspension of the Participant’s right to make Elective Deferrals under the
Plan. In addition, in the case of a Hardship Distribution that is not automatically deemed to be necessary to satisfy the financial need (pursuant to § 1.401(k)-1(d)(3)(iii)(B) of the Income Tax Regulations), the Vendor shall obtain information from Mukilteo or CCC to determine the amount of any plan loans and rollover accounts that are available to the Participant under the Plan to satisfy the financial need.
These are optional Plan features and may or may not be available. Does the Plan for Mukilteo allow Eligible Rollover Contributions to the Plan? Yes
(a) If Plan-to-Plan Transfers To the Plan are allowed, at the direction of Mukilteo, for a class of Employees who are participants or beneficiaries in another plan under Section 403(b) of the Code, the Administrator or CCC may permit a transfer of assets to the Plan for Mukilteo as provided in this Section 9.2. Such a transfer is permitted only if the other plan provides for the direct transfer of each person’s entire interest therein to the Plan and the participant is an employee or former employee of Mukilteo. The Administrator and any Vendor accepting such transferred amounts may require that the transfer be in cash or other property acceptable to it. The Administrator or any Vendor accepting such transferred amounts may require such documentation from the other plan as it deems necessary to effectuate the transfer in accordance with § 1.403(b)-10(b)(3) of the Income Tax Regulations and to confirm that the other plan is a plan that satisfies Section 403(b) of the Code.
(a) If Plan-to-Plan Transfers From the Plan for Mukilteo are allowed, Participants and Beneficiaries may elect to have all or any portion of their Account Balance transferred to another plan that satisfies Section 403(b) of the Code in accordance with § 1.403(b)-10(b)(3) of the Income Tax Regulations. A transfer is permitted under this Section 9.3(a) only if the Participants or Beneficiaries are employees or former employees of the employer (or the business of the employer) under the receiving plan and the other plan provides for the acceptance of plan-to-plan transfers with respect to the Participants and Beneficiaries and for each Participant and Beneficiary to have an amount deferred under the other plan immediately after the transfer at least equal to the amount transferred.
(b) If Plan-to-Plan Transfers From the Plan for Mukilteo are allowed, the receiving plan must provide that, to the extent any amount transferred is subject to any distribution restrictions required under Section 403(b) of the Code, the receiving plan shall impose restrictions on distributions to the Participant or Beneficiary whose assets are transferred that are not less stringent than those imposed under the Plan for Mukilteo. In addition, if the transfer does not constitute a complete transfer of the Participant’s or Beneficiary’s interest in the Plan for Mukilteo, the receiving plan shall treat the amount transferred as a continuation of a pro rata portion of the Participant’s or Beneficiary’s interest in the Plan for Mukilteo (e.g., a pro rata portion of the Participant’s or Beneficiary’s interest in any after-tax employee contributions).
(c) If Plan-to-Plan Transfers From the Plan are allowed, upon the transfer of assets under this Section 9.3, the Mukilteo Plan’s liability to pay benefits to the Participant or Beneficiary under the Plan for Mukilteo shall be discharged to the extent of the amount so transferred for the Participant or Beneficiary. The Administrator or CCC may require such documentation from the receiving plan as it deems appropriate or necessary to comply with this Section 9.3 (for example, to confirm that the receiving plan satisfies Section 403(b) of the Code and to assure that the transfer is permitted under the receiving plan) or to effectuate the transfer pursuant to § 1.403(b)-10(b)(3) of the Income Tax Regulations.
Does the Plan for Mukilteo allow Contract and Custodial Account Exchanges? Yes
(d) If Exchanges Within the Plan are allowed, Mukilteo enters into an agreement with the receiving Vendor (either indirectly via a CCC Umbrella Agreement or directly via a Vendor Agreement that designates CCC as the information sharing party on behalf of Mukilteo) for the other contract or custodial account under which CCC and the Vendor will from time to time in the future provide each other with the following information:
(1) Information necessary for the resulting contract or custodial account, or any other contract or custodial accounts to which contributions have been made by Mukilteo, to satisfy Section 403(b) of the Code, including the following: (i) CCC providing information as to whether the Participant’s employment with Mukilteo is continuing, and notifying the Vendor when the Participant has had a Severance from Employment (for purposes of the distribution restrictions in Section 7.1); (ii) the Vendor notifying CCC of any Hardship Distributions under Section 7.5 if the withdrawal results in a 6-month suspension of the Participant’s right to make Elective Deferrals under the Plan; and (iii) the Vendor providing information to CCC concerning the Participant’s or Beneficiary’s section 403(b) contracts or custodial accounts or qualified employer plan benefits (to enable CCC to determine the amount of any plan loans and any rollover accounts that are available to the Participant under the Plan in order to satisfy the financial need under the hardship withdrawal rules of Section 7.5); and
(2) Information necessary in order for the resulting contract or custodial account and any other contract or custodial account to which contributions have been made for the Participant by Mukilteo to satisfy other tax requirements, including the following: (i) the amount of any plan loan that is outstanding to the Participant in order for CCC to determine whether an additional plan loan satisfies the loan limitations of Section 6.3, so that any such additional loan is not a deemed distribution under Section 72(p)(1); and (ii) information concerning the Participant’s or Beneficiary’s after-tax employee contributions in order for CCC to determine the extent to which a distribution is includible in gross income.
(e) If Exchanges Within the Plan are allowed, if any Vendor ceases to be eligible to receive Contributions under the Plan, Mukilteo will enter into an information sharing agreement as described in Section 9.4(d) to the extent the contract of Mukilteo with the Vendor does not provide for the exchange of information described in Section 9.4(d)(1) and (2).
Does the Plan for Mukilteo allow Permissive Service Credit Transfers? Yes
Mukilteo has adopted the Plan with the intention and expectation that contributions will be continued indefinitely. However, Mukilteo has no obligation or liability whatsoever to maintain the Plan for any length of time and may discontinue contributions under the Plan at any time without any liability hereunder for any such discontinuance.
Mukilteo reserves the authority to amend or terminate this Plan at any time.
Mukilteo may provide that, in connection with a termination of the Plan and subject to any restrictions contained in the Individual Agreements, all Accounts will be distributed, provided that Mukilteo and any Related Employer on the date of termination do not make contributions to an alternative section 403(b) contract that is not part of the Plan during the period beginning on the date of plan termination and ending 12 months after the distribution of all assets from the Plan, except as permitted by the Income Tax Regulations.
If any contribution (or any portion of a contribution) is made to the Plan by a good faith mistake of fact, then within one year after the payment of the contribution, and upon receipt in good order of a proper request approved by the Administrator or CCC, the amount of the mistaken contribution (adjusted for any income or loss in value, if any, allocable thereto) shall be returned directly to the Participant or, to the extent required or permitted by the Administrator or CCC, to Mukilteo.
The Administrator or CCC shall make all reasonable attempts to determine the identity and address of a Participant or a Participant's Beneficiary entitled to benefits under the Plan. For this purpose, a reasonable attempt means (a) the mailing by certified mail of a notice to the last known address shown on records for Mukilteo or records for CCC, (b) notification sent to the Social Security Administration or the Pension Benefit Guaranty Corporation (under their program to identify payees under retirement plans), and (c) the payee has not responded within 6 months.
All Employees shall provide Mukilteo and any life insurance company that issues an Annuity Contract hereunder and any custodian of a Custodial Account established under the Plan, with any information that may be needed for the proper and lawful operation and administration of the Plan; including, but not limited to, appropriate evidence of the Employee's age and marital status, his current address, the current address of his spouse, and the current address of any other Beneficiary. 12.15 NO RIGHT OTHER THAN PROVIDED BY PLAN.
The establishment of this Plan and the purchase of any Annuity Contract or establishment of a Custodial Account under the Plan shall not be construed as giving to any Participant or Beneficiary or any other person any legal or equitable right against Mukilteo or its representatives, except as is expressly provided by this Plan. Under no circumstances shall this Plan constitute or modify a contract of employment or in any way obligate Mukilteo to continue the services of any Employee.
The terms of the Plan include this Plan document, the terms of the Investment Arrangements, and applicable salary reduction agreements. The terms of this Plan document may limit rights under the Investment Arrangement if Mukilteo has provided the relevant Vendors with written notice of such limitations. 12.20 AMENDMENT OR TERMINATION.
Mukilteo reserves the right to amend or terminate the Plan at any time, provided that no amendment or termination of the Plan may cause or result in the following: (i) amounts held under the Plan to be used for, or diverted to, purposes other than the exclusive benefit of Participants and Beneficiaries, (ii) a reduction in the amount of benefits accrued by or the amount credited to the Account of any Participant, (iii) a reduction in any Participant’s vested percentage in that portion of the Participant’s account attributable to Employer Contributions, if any, made before the day such amendment is adopted or becomes effective, whichever is later, (iv) the elimination or reduction of any optional form of distribution or benefit, or (v) any early retirement benefit provided by the Plan. The amendment or termination of the Plan may not enlarge or modify the contractual obligations of any Vendor. Mukilteo may in its sole discretion, by action in advance or by inaction and subsequent ratification, temporarily or permanently waive any Plan limitation or requirement, or portion thereof. Section 13 - Amendments
As amendments are made to this Plan Document general template, they will be appropriately annotated in numbered items of this Section 13, along with beginning and ending dates to which the amendments apply. Also, a complete chronological listing of copies of all Plan Documents that have ever applied to the Plan is maintained by CCC on the CCC website section dedicated to Mukilteo.