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1995-32018-Resolution No. 84-001 Recorded 1/11/198495-32018 BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON A Resolution Approving the Deferred Compensation Plan For Deschutes County * .r US Employees. JAN I RESOLUTION NO. 84-001 MARY SUE PENUOLLOW, CO. CLERK WHEREAS, Deschutes County has maintained a deferred compen- sation option for employees through the Benjamin Franklin Savings and Loan Association, where employees could defer a portion of their salary; and WHEREAS, that plan provided no alternative options to time certificates purchased with such compensation; and WHEREAS, no official plan document had ever been adopted by Deschutes County for the maintenance of its deferred compensation program; and WHEREAS, ORS Chapter 294 provides for deferred compensation funds to be invested at the option of the County, and any lawful investment in accordance with ORS 294.035 which include the options set out in the attached Deferrerd Compensation Plan For Deschutes County Employees; and WHEREAS, the plan having been reviewed by the auditor and found to be in conformance with Section 457 of the Internal Revenue Code of 1954, as amended; now, therefore, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, as follows: Section 1. That the Deferred Compensation Plan For Deschutes County Employees, marked Exhibit "A", attached hereto and by this reference incorporated herein, be adopted as the deferred compensation plan for Deschutes County employees. Section 2. That when construing the Deferred Compensation Plan For Deschutes County Employees, that it be interpreted and administered as an eligible State deferred compensation plan within the meaning of Section 457 of the Internal Revenue Code of 1954, as amended, and State of Oregon law relating to deferred compensation plans for deferred compensation programs for -p counties, as defined in ORS Chapter 294. Kly- 1 - RESOLUTION NO. 84-001 S� vol 51 FAoE 487 DATED this -89day of , 1983. BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON M"'� ze-6�t�� — ALBS A. YOUNG, Chair n ATTEST: & ju-4Q P� Recording Secretary 2 - RESOLUTION NO. 84-001 , Commissioner LAURENCE A. TUTTLa, Commissioner EXHIBIT A VOL 51 PAGE 488 DEFERRED COMPENSATION PLAN FOR DESCHUTES COUNTY EMPLOYEES ARTICLE I GENERAL Section 1.01 Plan Establishied. Deschutes County hereby established the Deschutes County deferred Compensation Plan, (hereinafter called the "Plan"). The Plan consists of the provision set forth in this document and participation agreement and is applicable to each county employee who elects to participate in the Plan. The Plan is effective as to each county employee upon the date the employee becomes a "PARTICIPANT" by signing the filing the Participation Agreement referred to herein with the Administrator. This Plan is effective upon execution. Section 1.02 Purpose. The purpose of this Plan is to assist the Deschutes County in attracting and retaining qualified individuals by offering them the opportunity to defer compensation until retirement or other occasion for distribution of benefits as provided herein. It is intended that this Plan be an "eligible State deferred compensation Plan" in the meaning of §457 of the Internal Revenue Code of 1954, as amended, and that it be administered in a manner which is consistent with the requirements of that statute so that the federal income taxation of compensation deferred hereunder may be deferred until the compensation and any income attributable thereto is paid or otherwise made available under the terms of this Plan. The EMPLOYER does not represent or guarantee that any particular Federal or State income, payroll, personal pro- perty, or other tax consequence will occur because of the PARTICIPANT'S participation in this Plan. The PARTICIPANT should consult with a certified public accountant, legal counsel or other tax consultant regarding all questions of Federal or State income, payroll, personal property, or other tax consequences arising from participation in this Plan. - 1 - VOL 51 Fain 489 Participation in this Plan by PUBLIC EMPLOYEE shall not be construed to give a contract of employment to the PUBLIC EMPLOYEE or to alter or amend an existing employment contract of the PUBLIC EMPLOYEE nor shall participation in this Plan be construed as affording the PUBLIC EMPLOYEE any representation or guarantee regarding the PUBLIC EMPLOYEE'S continued employment. Should it appear to the EMPLOYER that this Plan has been administered in any respect in a manner inconsistent with the requirements of 5457 of the Internal Revenue Code of 1954, the EMPLOYER, in its sole discretion, may require any PARTICIPANT to assist in correcting the inconsistency. However, the Plan is established solely for the convenience of PARTICIPANTS, to utilize or not at their discretion, and the EMPLOYER assumes no liability to any person for any adverse consequences arising in any manner from the person's particpation in this Plan, from the Plan's operation, or from the EMPLOYER'S administration of the Plan. Section 1.03 Definitions. As used in this Plan, the following mean: Administrator - The advisory committee authorized in 54.01 of this Plan; however, when the Plan or rules and regulations require filing documents or posting notice with the Administrator, Administrator means the personnel direc- tor or the director's designee. Annuity Contract - Any annuity contract entered into by the EMPLOYER for the purpose of accumulating assets and to pay annuities or other benefits to satisfy liabilities incurred under the terms of this Plan. Beneficiary - The person properly designated by a PARTICIPANT to receive the PARTICIPANT'S benefit in accor- dance with requirements of this Plan. Code - The Internal Revenue Code of 1954, as amended. Compensation - All payments to a'PUBLIC EMPLOYEE by the EMPLOYER as renumeration for services rendered, including salaries, fees, and the like. Employer - Deschutes County or any of its agencies, departments, subdivisions or instrumentalities, for whom services are performed by a PARTICIPANT. - 2 - Includible Compensation - For the purposes of the limi- tations on deferral, compensation for services performed which (taking into account amounts deferred under Code §457 and §403 (b) is currently includible in gross taxable income. Insurance Company - Any company, corporation or other entity with whom the EMPLOYER enters into an annuity contract. Early Retirement Age - Age 50 Years. Normal Retirement Age - Age 62 Years. Participant - Any PUBLIC EMPLOYEE who participates under this Plan by signing the Participation Agreement. Participation Agreement - The application to the Administrator to participate in the Plan which is also entitled "Consent to Compensation Change." Public Employee - Any person including elected or appointed officials receiving any type of compensation from the Deschutes County or any of its agencies, departments, subdivisions or instrumentalities for whom services are ren- dered, specifically including salaried employees, but not including independent contractors. Termination - Permanent separation from service with the EMPLOYER for absence from policies and any reason, except for a temporary leave of service authorized pursuant to the personnel practices of the EMPLOYER. ARTICLE II DEFERRAL OF COMPENSATION Section 2.01 Agreement Required. Compensation will be deferred for any calendar month only.if a participation agreement providing for such deferral is entered into and filed with the Administrator before the beginning of such month and at least five working days before the next regu- larly scheduled pay day. The participation agreement shall provided by the EMPLOYER and signed by which the, - 3 - be on a written form the PARTICIPANT on VOL 5$ PARTICIPANT shall specify the amount of compensation the PARTICIPANT wishes to defer and the time at which the PARTICIPANT wishes to begin deferring compensation. The Participation Agreement shall be attached to the PARTICIPANT'S copy of the Plan and is incorporated herein by reference as if set forth in full. Section 2.02 Time of Initial Election. A PARTICIPANT may first begin deferring compensation 1) within either of the first two calendar months beginning after the date on which the PARTICIPANT becomes a PUBLIC EMPLOYEE; 2) for those people who are already employees, within either of the first who calendar months after this Plan is in effect; or 3) at quarterly intervals as authorized in §2.06. Section 2.03 Election to Participate. Upon signing the Participation Agreement, the PARTICIPANT elects to par- ticipate in this Plan and consents to the EMPLOYER deferring the amount specified in the Participation Agreement from the PARTICIPANT'S gross compensation for each pay period. The dollard amount deferred ("deferred amount") must equal at least $12.50 per bi-weekly pay period. Section 2.04 When Election Effective. The election to participate shall be effective only for pay periods com- mencing during the first month after the date on which the Participation Agreement is filed with the Administrator. Section 2.05 Discontinuance or Resumption of Deferral of Compensation. Once a PARTICIPANT has commenced deferral of compensation the PARTICIPATE may stop deferral at any time by filing a written withdrawal of the Participation Agreement with the Administrator prior to the beginning of the first pay period for which no compensation is to be deferred. However, the payment of amounts previously deferred shall be made only as provided herein. The form of written withdrawal shall be prescribed by the Administrator. Having stopped deferral, the PARTICIPANT may resume deferral as provided in §2.02(3) and §2.06. - 4 - vol, 51 pry_ 499 Section 2.06 Opening Membership or Changing Amount Deferred. A PUBLIC EMPLOYEE who elects to defer compen- sation under §2.02(3) may elect to begin deferring compen- sation or a PARTICIPANT who is deferring compensation hereunder may change the amount of compensation to be deferred effective as of the 1st day of any month by filing a Participation Agreement with the Administrator before the 1st day of Said Month in which the change is to be effective and at least five working days before the next regularly scheduled pay day. NOTICE TO ALL PARTICIPANTS TO READ THESE PROVISIONS PROVIDING DEFERRAL LIMITATIONS AND "CATCH-UP" DEFERRALS UNDER THE PLAN. Section 2.07 Ordinary Maximum Deferal Amounts. Except as provided in §2.08, the maximum amount that may be deferred under the Plan for the PARTICIPANT'S taxable year shall not exceed the lesser of (a) $7,500 or (b) 33 1/3% of the PARTICIPANT'S inlcudible compensation, as provided in Code §457. Section 2.08 Maximum Deferral Amounts For Three Years Prior to Retirement Age. For one or more of the PARTICIPANT'S last three taxable years ending before the PARTICIPANT attains normal retirement age under the Plan, the maximum deferral shall be the lesser of (a) $15,000 or (b) the sum of 1) the Plan ceiling established for the pur- poses of §2.07 of the Plan for the taxable year (determined without regard to this section), plus 2) so much of the Plan ceiling established under §2.07 for taxable years before the taxable year as has not theretofore been used under §2.07 or §2.08 as provided in Code §457. Section 2.09 Participation in Other Plans. If a PARTICIPANT participates in an eligible State deferred com- pensation plan (in the meaning of Code §457) other than this Plan, the PARTICIPANT may not defer an amount of compen- sation under this Plan during a taxable - 5 - VOL 51 nA!_�r- 493 year which would result in the total compensation deferred under this Plan and all other such plans exceeding $7,500 (as modified by any adjustment provided under §2.08). Section 2.10 Application of Sections 2.07 - 2.09. In applying Section 2.07, 2.08 and 2.09 an amount excluded by any PARTICIPANT during a taxable year under Code §403 (b) shall be treated as an amount deferred under an eligible state deferred compensation plan. Section 2.11 Deposit of Roll Overs. A PARTICIPANT may also deposit in his or her deferred account amounts "rolled over" from other eligible state deferred compensation plans if the following conditions are met: 1) The other plan is in Oregon: 2) The other plan allows such amounts to be transferred; and 3) If an employee shifts from the County to another government entity with a plan, his rollover is com- pulsory, i.e., no distribution for termination of service. Such funds shall be invested under the same contract and subject to the same conditions as amounts deferred from com- pensation as described in §3.02. ARTICLE III DISPOSITION AND INVESTMENT OF AMOUNTS DEFERRED Section 3.01 Deposit of Funds by Employer. When a PARTICIPANT has agreed to defer compensation as provided in Article II, above, then for each pay period during the time the PARTICIPANT has specified, the amount the PARTICIPANT has deferred will be subtracted from the amount of the com- pensation otherwise due from the EMPLOYER for the period. The EMPLOYER shall deposit an amount equal to the amount deferred into a deposit fund established for the EMPLOYER pursuant to group annuity contracts entered into by the EMPLOYER. va 51 PA'T These group annuity contracts shall be acquired by the EMPLOYER solely as a convenient means of accumulating the funds necessary to meet the EMPLOYER'S liabilities to a. PARTICIPANT which are incurred from time to time pursuant to this Plan. Section 3.02 Investment Specification. The PARTICIPANT may specify a particular group annuity contract under which the PARTICIPANT wishes to have the deferred compensation invested. The EMPLOYER shall only be required to use such investment specification as an index for determining the benefits to be paid pursuat to Article V. The EMPLOYER shall be under no obligation to invest the deferred amount in the investment specification. All contracts for invest- ment of assets of the Plan shall be registered in the name of the EMPLOYER, which shall be the owner of the assets. Section 3.03 PARTICIPANTS Have No Rights to Property Created by Group Annuity Contract. Neither this Plan nor the group annuity contract shall in any manner or respect create a trust for the benefit of any person, and no person who has deferred compensation under this Plan shall have any right or interest in the rights or proerty created by the group annuity contract. Such rights and property, all amounts of compensation deferred under this Plan, all property and rights purchased with such amounts and all income attributable to such amounts, property, or rights shall remain (until made available to a PARTICIPANT or a beneficiary) solely the pro- perty and rights of the EMPLOYER (without being restricted to the provision of benefits under this Plan) subject only to the claims of the EMPLOYERS'S general creditors. Section 3.04 Charges to PARTICIPANT'S Deferred Account. All interest, dividends, charges for premiums and admi- nistrative expenses, or other fees imposed on the EMPLOYER by the annuity contract of this Plan and changes in value due to market fluctuations that would be applicable to each PARTICIPANT'S deferred account had the deferred amount been invested in - 7 - VOL 51 PACE 495 accordance with the PARTICIPANT'S investment specification shall be credited or debited to the account as they occur. Although the PARTICIPANT has no control over the account, all credits to the PARTICIPANT'S account shall be subject to and measured as if invested in the PARTICIPANT'S than effec- tive investment specification. All reports to the PARTICIPANT shall be based on fair market value as of the reporting date, as if the deferred amount had been invested according to the PARTICIPANT'S investment specification. All debits shall be calculated so that each PARTICIPANT'S account shall bear a share of the cost based on the ratio of the PARTICIPANT'S account to all accounts. Section 3.05 Income Attributable. The EMPLOYER does not guarantee any minimum or maximum rate of interest to be paid on the amounts deferred for each PARTICIPANT. Any interest paid on amounts deferred will be determined by the annuity contracts entered into by the county. ARTICLE IV ACCOUNTS AND REPORTS Section 4.01 Administration of Plan. The Plan shall be administered by an Advisory Committee appointed by the com- missioners. The Advisory Committee shall have the sole authority for the operation of the Plan in accordance with its terms and shall rule on all questions arising out of the administration, interpretation and application of the Plan, which rulings shall be conclusive and binding on all PARTICIPANTS. The advistory committee is a member of Deschutes county and Lumbermans Insurance Agency may par- ticipate in the Plan if employed by the county, but no member of the Committee shall be entitled to participate in any manner in a decision with respect to his or her own par- ticipation. The Committee shall prescribe any forms, rules or regulations necessary to carry out the purposes of the Plan, subject to Council approval. VOL 51 PAGE 4 6 Section 4.02 Ownership of Plan Assets. For convenience and to facilitate an orderly administration of the Plan, the EMPLOYER or EMPLOYER'S agent shall maintain a deferred account with respect to each PARTICIPANT. All assets of the Plan, including all deferred amounts, property and rights purchased with deferred amounts, and all income attributable to such deferred amounts, property or rights shall be the exclusive property of the EMPLOYER and shall be subject only to claims of general creditors of the EMPLOYER without pro- tection or preference. Section 4.03 Annual Report. Upon receipt of each deposit of deferred amounts by the underwriter of the designated investment option made pursuant to this Plan, the PARTICIPANT'S deferred account shall be credited with the amount received. A written report of the status of the PARTICIPANT'S deferred account shall be furnished to the PARTICIPANT at least annually and within ninety (90) days after the end of each calendar year. Section 4.04 Employer's Report. The EMPLOYER shall keep on file in the administrator's office copies of the docu- ments submitted to the EMPLOYER by the Insurance Company including any written report of the assets of the Plan, any schedule of all receipts and disbursements and any report of material transactions of the Plan during the preceding year. Section 4.05 Records Open to Inspection. The records shall be open to inspection during the normal business hours by the EMPLOYER or any PARTICPANT, or their designated representatives. Section 4.06 PARTICIPANT has General Creditor Rights Only. The rights of the PARTICIPANT created by this Plan shall be that of a general creditor of the EMPLOYER only and in an amount equal to fair market value of the deferred account maintained with respect to the PARTICIPANT deter- mined as if the deferred amounts has been invested pursuant to the PARTICIPANT'S investment specification. The PARTICIPANT acknowledges that the PARTICIPANT'S right are no VOL 51 FA,F 4 9? greater than those of a general creditor of the EMPLOYER and that in any suit for an accounting, to impose a constructive trust, or to recover any sum under this Plan the PARTICIPANT'S rights are limited to those of a general cre- ditor of the EMPLOYER. The EMPLOYER acknowledges that the Administrator is the agent of the EMPLOYER. ARTICLE V PAYMENT OF AMOUNTS DEFERRED Section 5.01 Amounts Payable in Accordance with Plan. Amounts payable under this Plan shall be paid in accordance with this Article. For purposes of this article, the amount of a PARTICIPANT'S deferred compensation and attributable income shall be determined as of the date it is to be paid and shall be defined as the sum of: A. All amounts of compensation which the PARTICIPANT has deferred from time to time under this Plan and which have not previously been distributed; and B. An amount equal to the portion of any net income which was paid to the EMPLOYER'S deposit fund, pursuant to any group annuity contract, which is attributable to the various deposits made by the EMPLOYER to the fund while the PARTICIPANT'S compensation was deferred from time to time under Article III, above. Section 5.02 Reporting Amounts Paid. Amounts paid to a PARTICIPANT under this article shall be reported to a PARTICIPANT as wages subject to withholding for State and Federal income tax and reportable on a W-2 form. Section 5.03 When Payable. At the discretion of the Administrator and after consulting with the EMPLOYEE, the - 10 - VOL 51 PACE 498 Administrator shall establish the time benefits shall com- mence, which shall be no earlier than 60 days following ter- mination of employment with the County (unless a payment is made under §5.11) and no later than the later of these two dates: 60 days after the year in which the PARTICIPANT reaches in normal retirement age; or 60 days after the year in which the PARTICIPANT leaves employment with the County. The time of payment shall be established by the Administrator within 30 days after the EMPLOYEE'S ter- mination of employment with the County or normal retirement age, whichever is earlier. The EMPLOYEE shall provide timely informtion to the administrator in writing on a form for this purpose. Section 5.04 Election of Method of Payment. A. At any time prior to distribution, a PARTICIPANT may elect a form in which the PARTICIPANT'S deferred Compensation is to be paid from the options Found in section 5.08: The election must be made by signing and Election of Payment form provided by the Administrator specifying the form of the payment elected and filing the form with the Administrator. An election may be altered at any time prior to the distribution of the first payment. B. If the PARTICIPANT has elected no form in which payment is to be made before distribution, the payment will be in the form of a lump sum payment. Section 5.05 Designation of Beneficiary. The PARTICIPANT may file with the Administrator a written bene- ficiary or change of beneficiary form designating the person or persons who shall receive the benefits payable under this Plan in the event of the PARTICIPANT'S death occurring before or after commencement of distribution. The form for this purpose shall be provided by the Administrator and will have no effect until it is properly completed, signed by the PARTICIPANT and filed with the administrator by the PARTICIPANT. If the PARTICIPANT dies without having a beneficiary form on file, VOL 51 °AGF 4 q 9 the payments shall be made to the properly appointed per- sonal representative of the PARTICIPANT'S probate estate. If a personal representative has not been appointed and qualified within one hundred twenty (120) days after the death, the payment shall be made first, to a surviving spouse, second, to a surviving child or children and third, to a surviving parent or parents. The PARTICIPANT accepts and acknowledges that the PARTICIPANT has the burden for executing and filing with the Administrator, a proper bene- ficiary designation form. Section 5.06 Election by Beneficiary. If the PARTICIPANT should die before payment of the deferred com- pensation has commenced, or before payment has been made in the case of a lump sum, the amount which would otherwise have been paid to him in a lump sum on termination of ser- vice will be distributed by the EMPLOYER to the beneficiary the individual has designated. At any time before the time of payment the beneficiary may choose a form of payment from among those that would have been available to the PARTICIPANT under section 5.08, and if no form is elected before that time, the disbtibution will be in a lump sum. The PARTICIPANT accepts and acknowledges the responsibility to inform the beneficiary of the right to select a specific option upon death of the PARTICIPANT. The EMPLOYER has no obligation to notify the beneficiary of a right to select an option upon the death of the PARTICIPANT. Section 5.08 Payment Options. PARTICIPANTS may select from the following options subject to the limitation in sec- tion 5.09. All options shall be the acturial equivalent in value: A. Lump -Sum Payment. The total benefits payable in one cash payment, which may at the PARTICIPANTS discretion be transferred to another eligible state deferred compensation plan. B. Payment For A Specified Period. Amounts payable in equal installments over a period of five (5) to twenty (20) years. - 12 - VOL 5.1 PA0E 50n C. Life Annuity. An annuity payable during the life- time of the PARTICIPANT. D. Life Annuity With Period Certain Guaranteed. An annuity payable during the lifetime of the PARTICIPANT or the PARTICIPANT'S beneficiary, with the guarantee that if at PARTICIPANT'S death, payments have not been made for the guaranteed period as elected, payments will continue to the beneficiary until payments have been made for the full guaranteed period elected. The guaranteed period to be elected must be either five (5), ten (10), or fifteen (15) years. E. Joint and Survivor Annuity. An annuity payment during the lifetimes of the PARTICIPANT and a secondary payee named by the PARTICIPANT. Section 5.09 Short Term or Lump Sum Settlement. Notwithstanding anything in the Plan to the contrary, if at any time the amount held in a PARTICIPANT'S deferred account has a credit balance of $2,000 or less, and for any reason other than retirement or disability the PARTICIPANT has ceased to be a public employee, the Administrator may effect a lump sum settlement, which may at the discretion of the PARTICIPANT be transferred to another eligible state deferred compensation plan. Section 5.10 Payment Schedule. If the PARTICIPANT has elected a payment option requiring installment payments, the PARTICIPANT may also elect to have the payments made either monthly, quarterly, semi-annually or annually. However, if the annual amount of an annuity paid under this Plan is less than $120, the annuity may be paid quarterly, unless the amount paid quarterly is less than $10, in which case the payments shall be made semi-annually. Section 5.11 Unforeseeable Emergency. Notwighstanding any other provisions herein,in the event of "unforeseeable emergency" a PARTICIPANT may request payment of benefits to the PARTICIPANT. - 13 - VOL 51. PAGE 501 A. Definition. An unforeseeable emergency is any type of unexpected and unreimbursed personal expense of a major nature that would normally not be budgetable, such as, impending personal bankruptcy; unexpected and unreimbursed major expenses resulting from illness, accident, or disabi- lity of the PARTICIPANT or any dependent thereof; major pro- perty loss. Foreseeable personal expenditures normally budgetable, such as a down payment for a home., the purchase of an automobile, college, or other educational expenses, divorce, etc., do not constitute an "unforeseeable emergency." The decision of the Administrator concerning whether an "unforeseeable emergency" exists shall be final. B. Amount Payable. Amounts to be paid shall be limited strictly to that amount necessary to meet the "unforeseeable emergency" sutuation constituting financial hardship. The Administrator shall determine of the amount necessary to meet the "unforeseeable emergency" based on all relevant facts. If the application for payment is approved by the Administrator, payment shall be made as of the first day of the month next following the application approval. If money is withdrawn and paid to a PARTICIPANT for an "unforeseeable emergency" any withdrawal charge authorized in the annuity contract covering the PARTICIPANT'S deferred compensation shall also be deducted from the amount withdrawn and applied to said charge. Any remaining benefits shall be paid in accordance with Section 5.01 - 5.10 of this Plan. C. Procedure. A PARTICIPANT shall request payment under - 14 - VOL 51 pgr this section by filing with the Administrator a completed request on a form prescribed by the Administrator. The Administrator shall make a decision on the request within twenty days. ARTICLE VI ADMINISTRATION OF PLAN Section 6.01 Amendment of Termination of Plan. The EMPLOYER may at any time amend or terminate this Plan with or without the consent of the PARTICIPANT (or any benefi- ciary thereof) provided: A. Any Plan amendment or termination shall be made by Council resolution. B. That all amendments or termination of the Plan shall become effective on the first day of the month following the giving of not less than forty-five (45) days prior notice of the amendment or termination. Notice is considered given when the amendment is posted in the office of the Administrator. To the extent it is possible to do so, the Administrator shall mail a copy of all amendments that become effective during the year to the PARTICIPANT with the PARTICIPANT'S annual report. No amendments shall deprive the PARTICIPANT of any of the benefit to which the PARTICIPANT is entitled under this Plan with respect to deferred amounts credited to the PARTICIPANT'S account prior to the effective date of the amendment. Notwithstanding the preceding sentence, any amendment which is require to secure intended tax benefits of this Plan under any present or future statute or regulation or any amendment which changes the timing and method for paying benefits from the Plan may be adopted without being deemed to have deprived the PARTICIPANTS of benefits to which they are entitled. C. If the Plan is curtailed, terminated, or the accep- tance of additional deferred amounts suspended permanently, the Administrator shall nonetheless be responsible for the supervision - 15 - VOL 51 rF,u_ 503 and the payment of benefits resulting from the amounts deferred prior to the amendment or termination in accordance with Article V hereof. Section 6.02 Insurance Company Not Party to Plan. Any insurance companies that may issue any policies or annuity contracts used by the EMPLOYER are not parties to this Plan and such companies shall have no responsibility or accoun- tablility to the PARTICIPANT or the PARTICIPANT'S benefi- ciary with regard to the operation of this Plan. Section 6.03 Appointment of Agents. The Administrator shall have the power to appoint agents to act for and in the administration of this Plan and to select depositories for the assets of this Plan. Section 6.04 Use of the Singular. Whenever used herein the singular shall include the plural unless the provisions of the contract specifically require a different construc- tion. Section 6.05 State Law to Apply. The law of the State of Oregon shall apply in determining the construction and validity of this plan. Section 6.06 PARTICIPANT'S Rights Not Subject to PARTICIPANT'S Creditors. The righs of the PARTICIPANT under this Plan shall not be subject to the rights of creditors of the PARTICIPANT or any beneficiary, and shall be exempt from execution, attachment, prior assignment, or any other judi- cial relief or order for the benefit of creditors or other third parties, except as provided in §7.09. Section 6.07 Assignment or Transfer of Rights. It is agreed that neither the PARTICIPANT or the PARTICIPANT'S beneficiary nor any other shall have any right to commute, sell, assign, transfer, or otherwise convey the right to receive any payments - 16 - va 51 50 4 hereunder which payments and right thereto are expressly declared to be nonassignable and nontransferable. Section 6.08 Plan is Total Agreement. This Plan, and any properly adopted amendment thereof, and the par- ticipation agreement shall constitute the total agreement or contract between the EMPLOYER and the PARTICIPANT regarding the Plan. No oral statement regarding the Plan or par- ticipation agreement may be relied upon by the PARTICIPANT. Section 6.09 Effect on Heirs and Assigns. This Plan, and any properly adopted amendment, and the participation agreement shall be binding on the parties hereto and their respective heirs, personal representatives, trustees, suc- cessors, and assigns and on all designated beneficiaries of the PARTICIPANT. ARTICLE VII NOTICE TO ALL PARTICIPANTS TO READ THESE PROVISIONS PROVIDING BROAD POWERS AND ABSOLUTE SAFEGUARDS TO THE EMPLOYER. Section 7.01 Questions of Fact. The EMPLOYER, or its authorized agent, the Administrator, shall be authorized to resolve any questions of fact necessary to decide that PARTICIPANT'S rights under this Plan and such decision shall be binding on the PARTICIPANT and any beneficiary thereof, subject to 57.10. Section 7.02 Interpretation of Plan. The EMPLOYER, or its authorized agent, the Administrator, shall be authorized to sonstrue the Plan and to resolve any ambiguity in the Plan, subject to §7.10. Section 7.03 Release of Liability for Damanges. THE PARTICIPANT SPECIFICALLY AGREES NOT TO SEEK RECOVERY AGAINST THE - 17 - VOL 51 �'aGE 505 EMPLOYER, THE ADMINISTRATOR OR ANY OTHER EMPLOYEE, CONTRACTEE, OR AGENT OF THE EMPLOYER OR ADMINISTRATOR FOR ANY LOSS SUSTAINED BY THE PARTICIPANT OR THE PARTICIPANT'S BENEFICIARY, FOR THE NONPERFORMANCE OF THEIR DUTIES, NEGLIGENCE, OR ANY OTHER MISCONDUCT OF THE ABOVE NAMED PERSONS EXCEPT THAT THIS PARAGRAPH SHALL NOT EXCUSE FRAUD OR WRONGFUL TAKING BY ANY PERSON. Section 7.04 Release of Liability for Court Costs and Attorney's Fees. The EMPLOYER and its agents, including the Administrator, are hereby held harmless from all court costs and all claims for the PARTICIPANT'S or the PARTICIPANT'S beneficiary's attorneys' fees arising for any action brought by the PARTICIPANT or any beneficiary thereof under this Plan or to enforce rights under this Plan, including any amendments hereof. Section 7.05 Suspension of Payments; Court Actions. The EMPLOYER, or its agents including the Administrator, if in doubt concerning the correctness of its action in making a payment of a benefit, may suspend the payment until satisfied as to the correctness of the payment or the person to receive the payment or allow the filing in any state court or competent jurisdiction, a suit in such form as it considers appropriate for a legal determination of the bene- fits to be paid and the persons to receive them. The EMPLOYER shall comply with final orders of the court in any such suit and the PARTICIPANT, for the PARTICIPANT and the PARTICIPANT'S beneficiary, consents to be bound thereby insofar as it affects the benefits payable under this Plan or the method or manner of payment. Section 7.06 Administrator's Participation in Litigation. The Administrator shall not be required to par- ticipate in any litigation concerning the Plan except upon written demand from the EMPLOYER. The Administrator may compromise, adjust or affect settlement of litigation when specifically instructed to do so by the EMPLOYER. VOL 51 PI,u;r- 5 0 6 Section 7.07 Written Notice. Any notice or other com- munication required or permitted under the Plan shall be in writing, and if directed to the EMPLOYER shall be sent to the designated office of the EMPLOYER or the Administrator. If directed to a PARTICPANT or to a PARTICIPANT'S benefi- ciary, it shall be sent to the PARTICIPANT or beneficiary at either the last known address as it appears on the EMPLOYER'S record or to send PARTICPANT'S work site, at the EMPLOYER'S option. Section 7.09 Participant Indebtedness to Employer. If any PARTICIPANT terminates employment with an unpaid debt owing to the EMPLOYER, and neglects or refuses to liquidate the debt by any other means when due and upon demand, the EMPLOYER shall be entitled to collect the amounts due from the deferred compensation owed to the PARTICIPANT under this Plan. Section 7.10 Claim Procedure. Any person claiming a benefit under this Plan may make a claim in writing to the Administrator. Within 60 days following its receipt, the Administrator will respond in writing to the person ini- tiating the claim. If no response to a claim is given within 60 days, the claim will be deemed to have been denied. For claims filed asunforeseeable emergencies the 60 days shall be reduced to twenty days. If the Administrator denies a claim in writing, notice to the person making the claim shall contain the following: 1) The Reason for the denial, stating specifically the provisions of the Plan upon which the Administrator bases the decision; 2) A statement of documents or information, if any, which will be required to perfect the claim, together with an explanation of why such documentation or information is necessary; 3) An explanation of the Plan's claim review procedure. A person who is not satisfied with the Administrator's - 19 - `VOL 51 FACE 50 7 response (or failure to respond) may request review by writ- ten notice to the Council. The matter will be reviewed by the Council who may, but is not required to, have the person appear. On review, the person may be represented by coun- sel, may examine pertinent documents and may submit issues and arguments in writing. The decision on review will make no later than 60 days after the receipt of the request for review, unless special circumstances of the matter makes this impractical, in which case the decision shall be made no later than 120 days after receipt of the request for review. For claims field as unforeseeable emergencies the 60 days referred to above, shall be reduced to 20 days and the 120 days referred to above, shall be reduced to 30 days. IN WITNESS WHEREOF, pursuant to Resolution No. 84-001 the EMPLOYER has executed this Plan day of January , 1984 rj C, A, � ALBLYRT A. YOUNG, Ch rman ATTEST: Recording Secretary •- 20 -