FOURTH AMENDMENT TO THE CITY OF CLEARWATER MONEY PURCHASE PENSION PLAN
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FOURTH AMENDMENT
TO THE
CITY OF CLEARWATER
MONEY PURCHASE PENSION PLAN
This Fourth Amendment to the City of Clearwater Money Purchase Pension Plan is
made and entered into this /7 <-f.-- day of _~~ , 2000, but is effective for all
purposes as of November 1, 1999, by the City of Clearwater (the "City").
WIT N E SSE T H:
WHEREAS, the City has previously adopted the City of Clearwater Money Purchase
Pension Plan (the "Plan"); and
WHEREAS, pursuant to the terms of the Plan the City is authorized and empowered
to amend the Plan; and
WHEREAS, the City deems it advisable and in the best interest of Participants to
amend the Plan.
NOW, THEREFORE, the Plan is hereby amended by the addition of a new article to
the end thereof, to read as follows:
ARTICLE XIII
Loans to Participants
13.1 Availability of Loans.
(a) The Plan Administrator, in accordance with its uniform
nondiscriminatory .policy, may direct the Trustee, upon application of a Participant
who is actively employed by the Employer, to make a loan to such Participant out of
his vested Accounts upon application of the Participant based upon the Participant's
immediate and heavy financial need (which shall be limited to the criteria set forth in
paragraph (e) below). Any such loan to a Participant shall be considered a
Participant directed investment under Article XI and without limitation shall be
subject to the provisions of Article XI.
(b) All loans must be requested in writing on an application approved by
the Plan Administrator and signed by the Participant. The Employer must review
and approve the application.
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Cc- - 27:( . DC
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FOURTH AMENDMENT TO
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MONEY PURCHASE PENSION PLAN
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(c) The amount advanced, when added to the outstanding balance of all
other loans to the Participant from this Plan or any other qualified retirement plan
adopted by the Employer, may not exceed the lesser of:
(1) $50,000, reduced by the excess, if any, of:
(A) the Participant's highest aggregate outstanding balance
of all loans from the Plan (or any other qualified retirement plan
adopted by the Participant's Employer) during the one (1) year period
ending on the day before the date on which the loan is made, over
(B) the aggregate outstanding balance of all loans from the
Plan (or any other qualified retirement plan adopted by the
Participant's Employer) on the date on which the loan is made; or
(2) 50% of the vested balance of the Participant's Accounts.
(d) The minimum amount that may be borrowed by the Participant shall be
$1,000.00.
(e) A loan will be authorized only in the event of an immediate and heavy
financial need. An immediate and heavy financial need shall be deemed to include
(1) expenses of medical care (as defined in Section 213(d) of the
Code) incurred by the Participant or his spouse or other
dependents (as defined in Section 152 of the Code) or necessary
for such persons to obtain such medical care,
(2) payments (other than mortgage payments) directly related to the
purchase of the Participant's principal residence,
(3) payment of tuition and related educational fees for the next 12
months of post-secondary education for the Participant or his
spouse, children or other dependents,
(4) payments necessary to prevent the eviction of the Participant
from his principal residence or the foreclosure on the mortgage of
such residence, or
(5) such other events as may be prescribed by the Commissioner of
the Internal Revenue Service in revenue rulings, notices and
other documents of general applicability.
(f) A single loan may be outstanding at any time. After a loan has been
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FOURTH AMENDMENT TO
CITY OF CLEARWATER
MONEY PURCHASE PENSION PLAN
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fully repaid, a new loan may not be made to the borrower for at least 30 days after
the final payment has been made with respect to the prior loan.
(g) Notwithstanding the foregoing, no Participant shall be entitled to
borrow an amount that the Plan Administrator determines could not be adequately
secured by the portion of such Participant's Accounts that is permitted to be held as
security pursuant to applicable Department of Labor Regulations.
(h) Any out-of-pocket legal and administrative costs incurred by the
Trustee as a result of a loan, or application for a loan, shall be paid by the
Participant who received or applied for such loan.
13.2 Time and Manner of ReDayment. Any loan made under this Article XIII
shall be repayable to the Trust at such times and in such manner as may be
provided by the Administrator, subject to the following limitations:
(a) Each loan shall be secured by 50% of the vested interest of the
Participant in his Accounts. The Administrator shall not accept any other form of
security. Each Participant shall agree to have each required loan payment
deducted from his pay and remitted to the Trustee.
(b) Each loan shall bear interest at a reasonable rate and shall provide for
substantially level amortization of principal and interest no less frequently than
quarterly. The interest rate charged shall be comparable to the rate charged by
commercial lending institutions in the region in which the Employer is located for
comparable loans as determined by the Plan Administrator at the time the loan is
approved.
(c) Each loan shall be repaid within a specified period of time. Such
period shall not be less than twelve (12) months, nor shall such period exceed five
(5) years, unless the loan is used to acquire the principal residence of the
Participant.
13.3 Default. In the event of default, the Trustee, at the direction of the
Administrator, may proceed to collect said loan with any legal remedy available,
including reducing the amount of any distribution permitted under Article VIII by the
amount of any such loan that may be due and owing as of the date of distribution or
any other action that may be permitted by law. "Events of Default" shall include any
failure to make a payment of principal or interest attributable to the loan when due;
failure to perform or to comply with any obligations imposed by any agreement
executed by the Borrower securing his loan obligation; and any other conditions or
requirements set forth within a promissory note or security agreement that may be
required in order to ensure that the terms of the loan are consistent with
commercially reasonable practices.
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FOURTH AMENDMENT TO
CITY OF CLEARWATER
MONEY PURCHASE PENSION PLAN
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IN WITNESS WHEREOF, this Fourth Amendment has been entered into and is
effective as of the date first set forth above.
Countersigned:
Approved as to form:
p~ K. Akin, City Attorney
fJP
CITY F CLEARWATER, FLORIDA
By:
Attest:
Michael J. Roberto, City Manager
hia E. Goudeau, City Clerk