§ 62-159. Contributions.

(a)

Deferral elections. A participant may, subject to the limits in subsections (b)—(f) of this section, elect, in a time and manner determined by the plan administrator, to defer a portion of his compensation. Any such election shall be effective as soon as practicable, but in no event earlier than the first day of the month beginning after the election is received by the plan administrator. All compensation deferred by a participant under the plan shall be allocated to the participant's contribution account and shall be transferred to the trust within a period that is reasonable for the proper administration of the participant's account.

(b)

Designated Roth contributions. Each participant may elect to make designated Roth Contributions in a manner determined by the plan administrator; provided, however, that a participant shall not make a Roth contribution to the plan for any plan year to the extent such Roth contribution would exceed the limitations of section 62-159(b).

(1)

This subsection will apply to designated Roth contributions beginning January 1, 2015.

(i)

As of the effective date under subsection (1), the plan will accept elective deferrals designated as Roth contributions made on behalf of participants. A participant's designated Roth contributions will be allocated to a separate account maintained for such deferrals as described in subsection (2).

(ii)

Unless specifically stated otherwise, designated Roth contributions will be treated as elective deferrals for all purposes under the plan.

(2)

Contributions and withdrawals of designated Roth contributions will be credited and debited to the Roth contribution account maintained for each participant.

(i)

The plan will maintain a record of the amount of designated Roth contributions in each participant's Roth contribution account.

(ii)

Gains, losses and other credits or charges must be separately allocated on a reasonable and consistent basis to each participant's Roth contribution account and the participant's other accounts under the plan.

(iii)

No contributions other than designated Roth contributions and properly attributable earnings will be credited to each participant's Roth contribution account.

(3)

A designated Roth contribution is an elective deferral that is:

(i)

Designated irrevocably by the participant at the time of the deferral election as a Roth contribution that is being made in lieu of all or a portion of the pre-tax deferrals the participant is otherwise eligible to make under the plan; and

(ii)

Treated by the city as includible in the participant's income at the time the participant would have received that amount in cash if the participant had not made a deferral election.

(c)

Normal deferral limitation. Except as provided in subsections (b)—(f) of this section, the maximum amount a participant may defer under this plan for any taxable year shall not exceed the lesser of:

(1)

The applicable dollar amount as adjusted in accordance with the provisions of section 457(e)(15) of the code; or

(2)

One hundred percent of the participant's compensation for the plan year less the amounts the participant deferred for the plan year under this plan and any retirement plan sponsored by the city and by any reductions during the plan year pursuant to a cafeteria plan under section 125 of the code or a qualified transportation fringe under section 132(f) of the code.

(d)

Additional deferrals. In addition to amounts deferred under subsection (a) of this section, a participant who meets the requirements of subsection (d), (e) and/or (f) of this section may defer additional amounts in accordance with the terms of those subsections; provided, however, that a participant who meets the requirements of both subsections (d), (e) and (f) may only defer additional amounts under the subsection which results in the greatest additional deferral.

(e)

Catch-up contributions for participants age 50 and over. Subject to the provisions of subsection (c) of this section, a participant who will attain the age of 50 (for qualified police and firefighters, participants who will attain the age of 40) before the close of the plan year and has deferred the maximum amount permitted by subsection (c) of this section, may defer an additional amount under the plan not to exceed the lesser of:

(1)

The applicable dollar amount as adjusted under section 414(v)(2) of the code; or

(2)

The participant's compensation for the plan year less the amount the participant deferred for the plan year under subsection (c) of this section.

(f)

Special catch-up contributions during last three years. Subject to the provisions of subsection (c) of this section, for each one of the participant's last three taxable years ending before his normal retirement age, the participant's deferrals under the plan shall not exceed the lesser of:

(1)

Twice the limit under subsection (c)(1) of this section; or

(2)

The sum of: (i) the amount determined under subsection (c) of this section for the taxable year; and (ii) the underutilized limitation for any prior taxable year determined as provided in proposed Treasury Reg. § 1.457-4(c)(3) as may be amended from time to time. A prior taxable year shall be taken into account only if the participant was eligible to participate in the plan for such year (or in any other eligible deferred compensation plan established under section 457(b) of the code which is properly taken into account pursuant to regulations under section 457), and compensation, if any, deferred under the plan, or such other plan, was subject to the maximum deferral limits of section 457(b)(2) of the code.

(g)

Return of excess deferrals. In no event shall the sum of a participant's deferrals under this plan for a plan year and his deferrals for the plan year under all other plans maintained by the city meeting the requirements of section 457(b) of the code, if any, exceed the maximum amount the participant can defer for the plan year in accordance with the provisions of this section. If the sum of a participant's deferrals for a plan year under this plan and all other plans maintained by the city meeting the requirements of section 457(b) of the code, if any, exceeds the maximum amount the participant can defer for the plan year in accordance with the provisions of this section, the plan shall distribute to the participant his excess deferral, together with any net income allocable to the excess deferral.

(1)

If a participant defers amounts during a plan year under a plan meeting the requirements of section 457(b) maintained by an employer other than the city, and those deferrals, when added to the amounts the participant defers under this plan for the plan year, exceed the amounts the participant may defer pursuant to subsections (b)(1) and (c)—(f) of this section, the participant may allocate all or a portion of such excess deferrals to this plan. In that event, the plan shall distribute the allocated excess deferrals, together with any net income allocable to such excess deferral, to the participant. However, the plan may return the excess deferrals and allocated net income to the participant but shall not be required to unless the participant notifies the plan administrator, in a time and manner determined by the plan administrator, of the amount of excess deferrals allocated to this plan.

(2)

Any distribution of excess deferrals under this subsection (g) shall be made as soon as administratively practicable following the determination that the participant's deferral is an excess deferral.

(h)

Change in deferral election. A participant may elect to increase, subject to the deferral limits in subsections (b)—(f) of this section, or to suspend or to decrease the amount of his deferral on the first day of any payroll period. Any such election shall be made in a time and manner prior to the start of such payroll period as the plan administrator shall determine.

(i)

Military service. Notwithstanding any provisions of this plan to the contrary, contributions and benefits with respect to a participant's qualified service in the uniformed services of the United States will be provided in accordance with section 414(u) of the code. Additionally, participants who die or become disabled while on active duty military service shall be treated as though re-employed as an employee the day before the participant became disabled or died, and then either died a non-duty death while employed or became disabled from a non-duty disability.

(j)

Portability of contributions. The plan will accept participant rollover contributions and direct rollovers of distributions made after December 31, 2001, that are eligible for rollover in accordance with sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii) or 457(e)(16)(including 457 Roth contributions) of the code from the following types of plans:

(1)

Qualified plans described in section 401(a) or 403(a) of the code;

(2)

Annuity contracts described in section 403(b) of the code;

(3)

Eligible plans under section 457(b) of the code which are maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state;

(4)

Another Roth contribution account under an applicable retirement plan described in 402(A) and only to the extent the rollover is permitted under the rules of 402(c) and section 1.402A-2 of the Treasury regulations. The plan administrator or other responsible party must provide the plan with a statement indicating the first year of the five-taxable-year period and the portion of the rollover distribution that is attributable to investment in the contract under code § 72 or a statement that the distribution is a qualified distribution; and

(5)

Individual retirement accounts or annuities described in section 408(a) or 408(b) of the code (including SEPs, and SIMPLE IRAs after two years of participating in the SIMPLE IRA).

The amount distributed from such plan must be rolled over to this plan no later than the 60th day after distribution was made from the plan, unless otherwise waived by the IRS pursuant to section 402(c)(3) of the code. Any amounts transferred to the plan pursuant to the provisions of this subsection (i) shall be allocated to the participant's rollover account and shall be transferred to the trust within a period that is reasonable for the proper administration of the participant's account.

(k)

In-Plan Roth Rollovers (Conversions). An "in-plan Roth transfer" is a distribution from a participant's plan account, other than a designated Roth account, that is rolled over to the participant's designated Roth account in the same plan pursuant to code section 402A(c)(4).

(1)

Any vested amount held in a plan account is eligible for an in-plan Roth transfer.

(2)

The amount converted in an in-plan rollover is subject to tax in the current tax year.

(Ord. No. 4319-11, § 1, 2-22-2011; Ord. No. 4544-15, § 3, 4-27-2015)