The URL can be used to link to this page

03-925coun�� F��e # 03 - 92 �5` Green Sheet # to39a Presented By Referred To RESOLUTION Y OF SAINT PAUL, MINNESOTA �� z Committee: Date 1 2 3 WHEREAS, the Public Housing Agency of the City of Saint Paul and the City of Saint Paul e (the "Employers'� currently maintain the Pension Plan of the Housing and Redevelopment s Authority of the City of Saint Paul, Mimiesota (the "Plan'�; and 6 � a 9 Wf�REAS, the Employers have reserved the rigtit to amend the Plan under Secfion lOAI of the Plan; and i o WHEREAS, the Employers wish to modify the Plan to comply with certain changes in the ii Internal Revenue Code (such changes commonly referred to as the "GUST amendments") and to i z make other miscelianeous changes to the Plan; and 13 i4 WHEREAS, the Employers wish to modify the Plan for certain changes required or allowed is by the provisions of the Economic Growth and Tas Relief Reconciliation Act of 2� i e ("EGTRRA"), effecrive as of January 1, 2002; and i� is WHEREAS, the Employers deem it advisable, in order to maintain the Plan's tax-qualified i9 status under the Internal Revenue Code, to make these modifications to the Plan in the form of an z o Amendment to and Restatement of the Plan and to submit the restated Plan to the Internal Revenue z i Service for a determivarion that the Plan continues to maintain its qualified status and for a z z compliance letter under the Employee Plans Compliance Resolution System; and 23 24 25 26 27 za 29 30 31 32 33 34 35 1. 2. 3. The Council hereby approves and authorizes the adoption of the Amendment to and Restatement of the Pension Plan of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, generaliy effective as of 7anuary 1, 2002; and The Council hereby approves and authorizes the preparation and adoption of an amendment to the Plan to satisfy the requirements of the final regulations under Section 401(a)(9) of the Intemal Revenue Code (relating to minimum required distriburions); and The appropriate officers of the Employers aze hereby authorized and directed to 3 6 a. Make such modifications to the form of the Amendment to and Restatement of s � Plan prior to the execution as they deem necessary or advisable, and any such s s changes are hereby approved; and 39 NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Saint Paul as fOlIOWS: 28490.1. 39 03-92.�5 40 41 4z b. Submit a detemvnation letter application for the Amended and Restated Plan to 43 the Internal Revenue Service ("IRS") for a detennination that the Plan continues aa to maintain its status as a qualified plan under Section 401(a) of the Internal 4s Revenue Code, and make any amendments to the Plan required by the IIZS in 4 6 order to obtain a favorable deterniuiation letter; 47 a s c. File a voluntary correcrion progrun submission for the Plan to the IRS for a 49 compliance letter under the Employee Plans Compliance Resolution System in s o order to maintain Plan's tax-qualified status under the Internal Revenue Code, s i and make any amendments to the Plan required by the IRS in order to obtain a sz compliance letter; and 53 sa d. Execute such amendments and inshwnents and take such other actions as they s s deem necessary or advisable to give effect to the foregoing resolutions. 56 s � BE IF FLJRTHER RESOLVED, that City Council of the City of Saint Paul, pursuant to the ss power of amendment reserved to them in Secfion 10.1 of the Pension Plan of the Housing and s 9 Redevelopment Authority of the City of Saint Paul, Minnesota (the "Plan"), hereby adopt and e o publish this Amendment No. 2 to the Plan. 61 ez Secfion 3.2 of the Plan is amended by adding the following paragraph to the end of such 63 section: 64 6s Forfeitures that arose prior to January l, 2003, which were not used to pay 66 adtniuistrative expenses, shall be allocated to Participants who are employees of an 5� Employer as of December 31, 2003. The actual allocation shall be made after the Internal 6a Revenue Service issues a compliance statement for the Plan under the Empioyee Plans 69 Compliance Resolution System. Subject to the contribution lnnitation described in Section � 0 3.03, the amount allocated to such a Participant shall be equal to the balance of those � i Forfeitures mulfiplied by the ratio of such ParticipanYs Account balance as of December 31, � z 2003 (before allocation of contribu6on or forfeitures) to the total such Account balances of �s all such Participants and shall be deemed to be Additional Contribufions. Any forfeitures �4 that cannot be allocated to such a Participant by reason of Section 3.03 shall be reallocated � s among other such Participants in accordance with the prior sentence. 76 � � BE TT FINALLY RESOLVED, that the City Council of the City of Saint Paul pursuant to �s the election by City participants in the Plan approves the appoinhnent by the Mayor of Duane �9 Stolpe as the Employees Representative on the PHA-City (HRA) Pension Plan Aduiii�istrative a o Committee for a 3-yeaz term expiring July 1, 2006. 2saso.�. b3-9� ��:�� . - , :-,.,. e�� e�� :, ..,, �� . -.,.. ��l�� .., ��e �� 5�� Adopted by Council: Date /�/- /� L�a.. Adoprion Certified by Council Secretary By: /✓iri ' / Approved by a r: Date • p` 0 By: ,L�/d/L• ,�v�r / Requested by Department of: I'�11 ►��. � �� Form Approved by City Attomey � Approve � 28490. t. 03-9z5 Planning & Devel Housina & Redevelooment F OMACT P62SON 8 W�NE [�� Terrence J. Garvey °� a S�$( , IUST BE ON CWNCILAGENDA BV (OATq October 15, 2003 TOTAL # OF SIGNATURE DA7E INITUITED GREEN SHEET � u �..R„�.�.� � m„� _ S _� � � � o � NUMBHtFOR CRYAiiOR1EY (�/�I� � GlYCLiRIt ROUi1NG � AYWfJIJ.fFRNCFJOYt FMIINCYLLfERY/I1CCla ❑ WYOR�WtYlLLTMf1) ❑ :S 2 (CUP ALL LOCATIONS FOR SIGNATURE) _.._...._____.�„ Approval of a Restatement of the Pension Plan of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, dated as of January 1, 2002. Approval of Amendment No. 2 to the above Restated Pension Plan of the Housing and Redevelopment Authority. Ratification of Duane Stolpe for a 3-year term as the City employee representative on the Administraive Committee. PLANNING CAMMISSION CIB COMMITfEE CNIL SERVICE COMMISSION tSONAL SERViCE CONTRACfS MUST ANSWER iHE FOLLOWING Q Fias Mis PersoNfiim evel wmketl untler a canhact far Nis depaAmeM? VES NO Hes this peisoNfirm ever been a ciry empbyee7 YES NO Dces fhis P��m P� a Slall Iqt nonnallYPo�essetl bY anY curtmt cilY emPbY�� YES NO la this peisoMfi�m a farpetetl vendoY! YES NO Amendments to the Internal Revenue Code dealing with Pension Plans necessitates updating the Plan Document to correspond with current provisions of the Internal Revenue Code (IRC) and continued qualification of the Plan. Plan Document update will continue treatment of the HRA Pension Plan as,a qualifying Governmental Pension Plan under the IRC. �s�^ -;:;_�� None IF APPROVED Plan loses its tax-exempt status, OF TRANSACTION S SOURCE � COST/REVENUEBUOGETED(CIRCLEON� ACTNITY NUMBER No�� VES NO �th�'i�#1 F32SP.^r^�� °�n��°C 1 � � t � D 3 - 92S PUBLIC HOUSING AGENCY OF THE CITY OF SAINT PAUL REPORT TO COMMISSIONERS REGARDING PensionPlanRestatement FROM JON M.GUTZMANN EXECUTIVE DIRECTOR DATE September 24, 2003 Staff and the Pension Administrative Committee of the HRA/PHA Pension Plan recommend that the PHA Board adopt Resolurion 03-09/24-01, approving a restatement of the Pension Plan of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota. The Administrative Committee is also asking the Saint Paul City Council to approve the restatement. The Administrative Committee and their legal counsel recommend that the restatement be "generally effective as of January 1, 2002" (except as noted otherwise in the document), corresponding to legislation which was effective on that date. The Public Housing Agency and the City of Saint Paul are the sponsors of the HRA/PHA Pension Plan. This "defined contribution" pension plan dates back to the era when the public housing program was part of the City's Housing and Redevelopment Authority. In 1977, when the PHA became a separate legal entity and the HRA remained with the City of Saint Pau1, public housing employees who transfened to employment with the City were permitted to continue in the HRA/PHA Pension Plan. Sixteen active City employees are still participants in the Plan. Participation is mandatory for 248 eligible PHA employees. This includes certain temporary employees and staff who are on family medical leave or leave-without-pay status. The plan also maintains accounts for approximately 17 retired City and 92 retired, terminated, or laid off PHA employees. These 373 participants have a total of $27.5 million invested through the plan. This makes our plan a"mid-size plan" in the pension world. 03-925 REPORT TO COMMISSIONERS — SEPTEMBER 24, 2003 PENSION PLAN RESTATEMENT PAGE 2 of 3 The HRA/PHA Pension Plan is govemed by the five members of the Administrative Committee, who also serve as the trustees for the Pension Trust Fund. The PHA Boazd of Commissioners appoints three members of the committee, as follows: 1. One person selected by the Board; currently Junella Pichelman, the PHA's Controller; 2. One representative elected by the PHA's "Administrative Office Employees" (S&C and AFSCME); currently Mike McMurray, the PHA's Human Resources Directar; and 3. One representative selected by agreement between Loca170, Operating Engineers and Local 132, Conshuction and General Laborers; currently Tom Besaw, Local 132's business agent. The Saint Paul City Council appoints the other two members of the Administrative Committee, one of whom is elected by the City employees who participate in the pension plan. The Pension Administrative Committee contracts with Principal Financial Group to administer participants' inveshnents. Participants can track their inveshnents as well as make changes on a daily basis on the Internet or using an automated phone system. The pension plan document was restated in 1983, amended in 1989, and restated again in 2000. Since that time changes in the Internal Revenue Code have resulted in some minor changes in the plan. The legal counsel for Principal and special counsel from Oppenheimer Wolff & Donnelly retained by the pension plan Board of Trustees reviewed the pension plan and prepared the attached Restatement, Amendment and Resolution. The intent of the revisions is to conform the plan document to the existing Internal Revenue Code rules and regulations. The amendment is necessary to make the plan comply with II2S rules regarding the use of forfeitures. This restatement and amendment will enable the plan to go through the Voluntary Compliance �- 9zs REPORT TO COMMISSIONERS - SEPTEMBER 24, 2003 PENSION PLAN RESTATEMENT PAGE 3 of 3 Program {VCP) with the Internal Revenue Service regarding the use of forfeitures. The resolution, as written, gives the appropriate officers (Plan Trustees) the authorization and direction to complete the Amendment No. 1 which will satisfy final regulations under section 401(a)(9) ofthe Intemal Revenue Code (relating to minimum required distributions.) The document is not intended to make any substantive changes in the benefits provided to participants by the City and/or the PHA under the plan. JCP Attachments: Plan Restatement Amendment Resolution ; PENSION PLAN OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL, MINNESOTA Defined Contribution Plan 8.0 Restated January 1, 2002 b3 - 9zs 03- 92S TABLE OF CONTENTS INTRODUCTION ARTICLE I FORMAT AND DEFINITIONS Section l.Ol ----- Format Section 1.02 ----- Definitions ARTICLE II Section 2.01 Section 2.02 Section 2.03 ARTICLE III PARTICIPATION ----- Active Participant ----- Inactive Participant ----- Cessation of Participation CONTRIBUTIONS Section 3.01 ----- 414(h) Contributions Section 3.01 A------ Employer Contributions Section 3.O1 B----- Voluntary Contributions by Participants Section 3.O1 C---- Rollover Contributions Section 3.02 ----- Forfeitures Section 3.03 ----- Contribution Limitation ARTICLE IV INVESTMENT OF CONTRIBUTIONS Section 4.01 ----- Investment of Contributions Section 4.02 ----- Purchase of Life Insurance Contracts Section 4.03 ----- Payment of Premiums Section 4.04 ----- Overriding Conditions and Limitations Section 4.05 ----- Life Insurance Death Benefits ARTICLE V Section 5.01 Section 5.02 Section 5.03 Section 5.04 Section 5.05 Section 5.06 BENEFITS ----- Retirement Benefits ----- Death Benefits ----- Vested Benefits ---- When Benefits Start ----- Withdrawal Benefits ----- Loans to Participants RESTATEMENT JANUARY 1, 2002 3 TABLE OF CONTENTS (6-10089) -5 �3 -9zs� ARTICLE VI Section 6.O1 Section 6.02 Section 6.03 ARTICLE VII DISTRIBUTION OF BENEFITS ----- Forms of Distribution ---- Special Death Benefit ----- Election Procedures DISTRIBUTION REQUIREMENTS Section 7.01 ----- Application Section 7.02 ----- Definitions Section 7.03 ----- Distribution Requirements Section 7 04 ----- Inability to Locate Payee Section 7.05 ----- Reemployment of a Participant Section 7.06 ----- Facility of Payment ARTICLE VIII TERMINATION OF THE PLAN Section 8.0"I ----- Termination Section 8.02 ----- Withdrawal of an Employer ARTIC�E IX Section 9.0"I Section 9.02 Section 9.03 Section 9.04 Section 9.05 Section 9.06 Section 9.07 ARTICLE X Section 10.01 Section 10.02 Section 10.03 Section 10.04 Section 10.05 Section 10.06 Section "10.07 Section "10.08 Section "10.09 Section 10.10 Section "10.11 Section 10.12 PLAN EXECUTION ADMINISTRATION OF THE PLAN ----- Establishment of Administrative Committee ----- Administration ----- Expenses ----- Records ----- Information Available ----- Exercise of Discretionary Authority ----- Claims Review Procedure GENERAL PROVISIONS ----- Amendments ----- Direct Rollovers ----- Provisions Relating to the Insurer and Other Parties ----- Employment Status ----- Rights to Plan Assets ----- Beneficiary ----- Construction ----- Legal Actions ----- Withholding ----- Back Pay Awards ----- Word Usage ----- Military Service RESTATEMENT JANUARY 1, 2002 4 TABLE OF CONTENTS (6-10089) -5 03 - 9zs INTRODUCTION The Employers previously established the Pension Plan of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, effective as of January 'I, '1974 The Employers are of the opinion that the Plan should be changed. It believes that the best means to accomplish these changes is to completely restate the Plan's terms, provisions and conditions. This restatement of the Plan is effective as of January "I , 2002, except as otherwise provided in this document. The restated Plan continues to be for the exclusive benefit of employees of PHA and the City. All persons covered under the plan on December 31, 200'I, shall continue to be covered under the restated Plan with no loss of benefits. It is intended that the Plan, as restated, shall qualify as a governmental money purchase pension plan under Section 401(a) of the Internal Revenue Code of 1986, as amended. RESTATEMENT JANUARY 1, 2002 5 INTRODUCTION (6-10089) -5 03 - 9zS ARTICLE I FORMAT AND DEFINITIONS SECTION 1.01--FORMAT. Words and phrases defined in the DEFINITIONS SECTION of Arcicle I shall have that defined meaning when used in this Plan, unless the context clearly indicates otherwise. These words and phrases have an initial capital letter to aid in identifying them as defined terms. SECTION 1.02--DEFINITIONS. Account means, for a Participant, his share of the Plan Fund. Separate accounting records are kept for those parts of his Account that result from: (a) Voluntary Contributions (b) 4'14(h) Contributions (c) Additional Contributions (d) Rollover Contributions If the Participant's Vesting Percentage is less than 100% as to any of the Contributions, a separate accounting record will be kept for any part of his Account resulting from such Contributions and, if there has been a prior Forfeiture Date, from such Contributions made before a prior Forfeiture Date. A Participant's Account shall be reduced by any distribution of his Vested Account and by any Forfeitures. A Participant's Account shall participate in the earnings credited, expenses charged, and any appreciation or depreciation of the Investment Fund. His Account is subject to any minimum guarantees applicable under the Trust Agreement and to any expenses associated therewith. Acknowledgement Form means a form executed by an Employee, in which he acknowledges that he has been informed by the Administrative Committee that, as a condition of employment, the Administrative Committee will deduct from the Employee's Compensation, by regular payroll deductions, an amount equal to 5% of his Compensation for an Employee of PHA and pay that amount to the Plan as a Contribution by the Employee. For an Employee of the City, the Administrative Committee will deduct an amount that when added to the Additional Contribution shall result in a combined total contribution equal to 12% of his Compensation. These Contributions shall be classified as "picked up" by the Employer pursuant to Code Section 414(h) and treated as an Employer Contribution. Any Employee who participates in this Plan shall be deemed to have entered into this Acknowledgement Form. Active Participant means an Eligible Employee who is actively participating in the Plan according to the provisions in the ACTIVE PARTICIPANT SECTION of Article II and who has not ceased to be an Active Participant. RESTATEMENT JANUARY 1, 2002 6 ARTICLE I(6-10089) -5 03 -925 Additional Contributions means additional contributions made by an Employer to fund this Plan. See the EMPLOYER CONTRIBUTIONS SECTION of Article III. Administrative Committee means the committee established pursuant to Section 9.0"I . Administrator means the Administrative Committee, unless the Administrative Committee designates another person or persons to act as such. Annuity Starting Date means, for a Participant, the first day of the first period for which an amount is payable as an annuity or any other form. Bene£ciary means the person or persons named by a Participant to receive any benefits under the Plan when the Participant dies. See the BENEFICIARY SECTION of Article X. City means the City of Saint Paul, MinnesoTa. Code means the lnternal Revenue Code of "1986, as amended. Compensation means, the total earnings paid or made available to an Employee by PHA or the City for any specified period. "Earnings" in this definition means wages within the meaning of Code �ction 3401(a) and all other payments of compensation to an Employee by the Employer (in the course of the Employers trade or business) for which the Employer is required to furnish the Employee a written statement under Code Sections 6041(d), 605"I (a)(3), and 6052. Earnings must be determined without regard to any rules under Code Section 340"I (a) that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in Code Section 3401(a)(2)). The amount reported in the "Wages, Tips and Other Compensation" box on Form Vu2 satisfies this definition. Compensation shall exclude the following: bonuses overtime pay all other forms of extra compensation. Compensation shall be determined before any exclusions for 414(h) Contributions. For Plan Years beginning on or after January 1, 1994, the annual Compensation taken into account for determining all benefits provided under the Plan for any Plan Year for any individual shall not exceed $150,000, as adjusted by the Commissioner for increases in the cost of living in accordance with Code Section 401(a)(17)(B). For Plan Years beginning on or after January 1, 2002, the annual Compensation taken into account for determining all benefits provided under the Plan for any Plan Year for any individual shall not exceed $200,000, as adjusted by the Commissioner for increases in the cost of living in accordance with Code Section 40"I (a)(17)(B). The cost of living adjustment in effect for a calendar year applies to any period, not exceeding 12 months, over which pay is determined (determination period) beginning in such RESTATEMENT JANUARY 1, 2002 7 ARTICLE I(6-10089) -5 03 -9zS calendar year. If a determination period consists of fewer than 12 months, the annual compensation limit will be multiplied by a fraction, the numerator of which is the number of months in the determination period, and the denominator of which is 12. If Compensation for any prior period is taken into account in determining a Participant's contributions or benefits for the current period, the Compensation for such prior year is subject to the applicable annual compensation limit in effect for that prior year. Contributions means 414(h) Contributions Additional Contributions Voluntary Contributions Rollover Contributions as set out in Article III, unless the context clearly indicates only specific contributions are meant. Direct Rollover means a payment by the Plan to the Eligible Retirement Plan specified by the Distributee. Distributee means an Employee or former Employee. In addition, the Employee's (or former Employee's) surviving spouse and the Employee's (or former Employee's) spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Code Section 414(p), are Distributees with regard to the interest of the spouse or former spouse. Eligible Employee means any Employee who is customarily employed with PHA or the City for at least 20 hours per week and more than five months each Plan Year and who meets one of the following requirements: Employees formerly employed by HRA who are now employed by the City and have elected to continue to participate in the Plan upon becoming an employee of the City. Employees who are covered by a collective bargaining agreement that specifically provides for coverage under this Plan. Employees in the class of Supervisory and Confidential. Eligible Retirement Plan means an individual retirement account described in Code Section 408(a), an individual retirement annuity described in Code Section 408(b), an annuity plan described in Code Section 403(a) or a qualified trust described in Code Section 401(a), that accepts the Distributee's Eligible Rollover Distribution. However, in the case of an Eligible Rollover Distribution to the surviving spouse, an Eligible Retirement Plan is an individual retirement account or individual retirement annuity. Effective for distributions made after December 31, 2001, an Eligible Retirement Plan shall also mean an annuity contract described in Code Section 403(b) and an eligible plan under Code Section 457(b) whfch is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this Plan. The definition of Eligible Retirement Plan shall also apply in the case of a distribution RESTATEMENT JANUARY 1, 2002 8 ARTICLE I(6-10089) -5 03 - 9zs to a surviving spouse, or to a spouse or former spouse who is the alternate Eayee under a qualified domestic relations order, as defined in Code Section 4"14(p). Eligible Rollover Distribution means any distribution of all or any portion of the balance to the credit of the Distributee, except that an Eligibie Rollover Distribution does not include: (i) any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the Distributee or the joint lives (or joint life expectancies) of the Distributee and the Distributee's designated Beneficiary, or for a specified period of ten years or more; (ii) any distribution to the extent such distribution is required under Code Section 401(a)(9); (iii) the portion of a�y other distribution(s) that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities); and (iv) any other distribution(s) that is reasonably expected to total less than $200 during a year. Effective for distributions made after December 31, 2001, any amount that is distributed on account of hardship shall not be an Eligible Rollover Distribution and the Distributee may not elect to have any portion of such distribution paid directly to an Eligible Retirement Plan. A portion of a distribution shall not fail to be an Eligible Rollover Distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income. However, such portion may be transferred only to an individual retirement account or annuity described in Code Section 408(a) or (b), or to a qualified defined contribution plan described in Code Section 401(a) or 403(a) that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. Employee means an individual who is employed by PHA or the City. Employer means any enTity ihat has adopted the Plan, including the Public Housing Agency of the City of Saint Paul, Minnesota, and the City of Saint Paul, Minnesota. Entry Date means the date an Employee first enters the Plan as an Active Participant. See the ACTIVE PARTICIPANT SECTION of Article II. Fiscal Year means the AdministraTive Committee's accounting year. The last day of the Fiscal Year is December 3"I . 414(h) Contributions means employee contributions "picked up" by the Employer pursuant to Code Section 4"14(h) and treated as a contribution made by the Employer. These Contributions are not available to the Participant as current income, and the Participant has no discretion to receive them as such. Forfeiture means the part, if any, of a Participant's Account that is forfeited. See the FORFEITURES SECTION of Article III. Forfeiture Date means, as to a Participant, the date the Participant ceases to be an Employee. This is the date on which the Participant's Nonvested Account will be forfeited. HRA means the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota. RESTATEMENT JANUARY 1, 2002 9 ARTICLE I(6-10089) -5 03 - 92S Inactive Participant means a former Active Participant who has an Account. See the INACTIVE PARTICIPANT SECTION of Article II. Insurer means the insurance company or companies named by the Trustee in its discretion or as directed under the Trust Agreement to issue annuity contracts. Investment Fund means the total of Plan assets, excluding the term life insurance and the guaranteed benefit policy portion of any annuity contract. All of these assets will be held under the Trust Agreement. The Investment Fund shall be valued at current fair market value as of the Valuation Date. The valuation shall take into consideration investment earnings credited, expenses charged, payments made, and changes in the values of the assets held in the Investment Fund. The Investment Fund shall be allocated at all times to Participants, except as otherwise expressly provided in the Plan. The Account of a Participant shall be credited with its share of the gains and losses of the Investment Fund. That part of a Participant's Account invested in a funding arrangement which establishes one or more accounts or investment vehicles for such Participant thereunder shall be credited with the gain or loss from such accounts or investment vehicles. The part of a Participant's Account which is invested in other funding arrangements shall be credited with a proportionate share of the gain or loss of such investments. The share shall be determined by multiplying the gain or loss of the investment by the ratio of the part of the Participant's Account invested in such funding arrangement to the total of the Investment Fund invested in such funding arrangement. Late Retirement Date means the date which is after a Participant's Normal Retirement Date and on which retirement benefits begin. If a Participant continues to work for PHA or the City after his Normal Retirement Date, his Late Retirement Date shall be the date he ceases to be an Employee. An earlier or a later Retirement Date may apply if the Participant so elects. See the WHEN BENEFITS START SECTION of Article V. Nonvested Account means the excess, if any, of a Participant's Account over his Vested Account. Normal Retirement Date means the date the Participant reaches his 65th birthday. Unless otherwise provided in this Plan, a Participant's retirement benefits shall begin on a Participant's Normal Retirement Date if he has ceased to be an Employee on such date and has a Vested Account. See the WHEN BENEFITS START SECTION of Article V. Participant means either an Active Participant or an Inactive Participant who has an Account under the Plan. Participant Contributions means Voluntary Contributions as set out in Article III. Period of Military Duty means, for an Employee (a) who served as a member of the armed forces of the United States, and RESTATEMENT JANUARY "I, 2002 10 ARTICLE I(6-10089) -5 D�-9�5 (b) who was reemployed by PHA at a time when the Employee had a right to reemployment in accordance with seniority rights as protected under Chapter 43 of Title 3S of the U. S. Code, the period of time from the date the Employee was first absent from active work for PHA because of such military duty to the date the Employee was reemployed. PHA means the Public Housing Agency of the City of Saint Paul, Minnesota. Plan means the Pension Plan of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota as set forth in this document and the Trust Agreement, including any later amendments to it. Plan Fund means the total of the Investment Fund, and the guaranteed benefit policy portion of any Annuity Contract. The Investment Fund shall be valued as stated in its definition. The guaranteed benefit policy portion of any annuity contract shall be determined in accordance with the terms of the annuity contract and, to the extent that such annuity contract allocates contract values to Participants, allocated to Participants in accordance with its terms. The total value of all amounts held under the Plan Fund shall equal the value of the aggregate Participants' Accounts under the Plan Plan Year means a period beginning on a Yearly Date and ending on the day before the next Yearly Date. Reentry Date means the date a former Active Participant reenters the Plan. See the ACTIVE PARTICIPANT SECTION of Article II. Retirement Date means the date a retirement benefit will begin and is a Participant's Normal or Late Retirement Date, as the case may be. Rollover Contributions means the Rollover Contributions which are made by an Eligible Employee or an Inactive Participant according to the provisions of the ROLLOVER CONTRIBUTIONS SECTION of Article III. Severance Date means the date on which an Employee's status as an Employee of any Employer ceases for any reason, except that if the Employee is on leave of absence, military leave, layoff for any reason, or similar status, he shall not incur a Severance Date while in that status, but will incur a Severance Date when such status ends unless he returns to active employment with an Employer at that time or, in the case of an Employee on military leave, within the period during which he retains reemployment rights under the Uniformed Services Employment and Reemployment Rights Act of 1994. Totally and Permanently Disabled means that a Pdrticipant is disabled such that he can no longer continue in the service of his Employer, as determined by his Employer on the basis of a written certificate of a physician acceptable to it, and if he has a medically determinable physical or mental disability that is expecied to result in death or to be of continued and indefinite duration and which renders the Participant unable to engage in any employment or occupation for remuneration for which the Participant is reasonably qualified by reason of his training, education, and experience. Trust Agreement means an agreement of trust between the Administrative Commlttee and Trustee established for the purpose of holding and distributing the Trust Fund under the provisions of the Plan. The Trust Agreement(s) may provide for the investment of all or any portion of the Trust Fund in an annuity contract and any life insurance contract. The Trust Agreements associated with this Plan are RESTATEMENT JANUARY 1, 2002 11 ARTICLE I(6-10089) -5 63-9zs � the Trustar Directed 40"I(a) Governmental Trust Agreement and the Pension Trust Agreement of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota. Trust Fund means the total funds held under the Trust Agreement. Trustee means the party or parties named in the Trust Agreement. The term Trustee as it is used in this Plan is deemed to include the plural unless the context clearly indicates the singular is meant. Valuation Date means the date on which the value of the assets of the Investment Fund is determined. The value of each Account which is maintained under this Plan shall be determined on the Valuation Date. In each Plan Year, the Valuation Date shall be the last day of the Plan Year. At the discretion of the Administrative Committee, Trustee, or Insurer (whichever applies), assets of the Investment Fund may be valued more frequently. These dates shall also be Valuation Dates. Vested Account means the vested part of a Participant's Account. The Participant's Vested Account is determined as follows. If the Participant's Vesting Percentage is '100%, his Vested Account equals his Account. If the Participant's Vesting Percentage is less than 100%, his Vested Account equals the sum of (a) and (b) below: (a) The part of the Participant's Account that results from Contributions made before a prior Forfeiture Date and all other Contributions which were 100% vested when made. (b) The balance of the Participant's Account in excess of the amount in (a) above multiplied by his Vesting Percentage. The Participant's Vested Account is nonforfeitable. Vesting Percentage means the percentage used to determine the nonforfeitable portion of a Participant's Account attributable to Contributions which were not "100% vested when made. A Participant's Vesting Percentage is shown in the following schedule opposite the number of whole years of his Vesting Service. VESTING SERVICE VESTING (whole years) PERCENTAGE Less than one 0 One, but less than two 20 Two, but less than three 40 Three, but less than four 60 Four, but less than five 80 Five, or more 100 RESTATEMENT JANUARY 1, 2002 12 ARTICLE I(6-"10089) -5 03- 9�5 The Vesting Percentage for a Participant who is an Employee on or after his Normal Retirement Date or the date he reaches age 55 shall be 100%. The Vesting Percentage for a Participant who is an Employee on the date he becomes Totally and Permanently Disabled or dies shall be 100%. Vesting Service means each year a Participant is an Active Participant for the full Plan Year. If the Participant is not an Active Participant for the full Plan Year, he shall be credited with 1/12T" of a year of Vesting Service for each complete month in which he is an Active Participant. However, Vesting Service is modified as follows: Period of Military Duty included: A Period of Military Duty shall be included as service with PHA to the extent it has not already been cretlited. Voluntary Contributions means contributions by a Participant that are not required as a condition of employment, of participation, or for obtaining additional benefits from the Plan. See the VOLUNTARY CONTRIBUTIONS BY PARTICIPANTS SECTION of Article III. Yearly Date means January 1, 1974, and the same day of each following year. RESTATEMENT JANUARY 1, 2002 13 ARTICLE I(6-10089) -5 03- 9�s ARTICLE II PARTICIPATION SECTION 2.01--ACTIVE PARTICIPANT. (a) An Employee may first become an Active Participant (begin active participation in the Plan) on the earliest date on which he is an Eligible Employee. This date is his Entry Date. Each Employee who was an Active Participant under the Plan on December 31, 2001, shall continue to be an Active Participant if he is still an Eligible Employee on January 1, 2002. (b) An Inactive Participant shall again become an Active Participant (resume active participation in the Plan) on the date he again becomes an Eligible Employee. This date is his Reentry Date. Upon again becoming an Active Participant, he shall cease to be an Inactive Participant. (c) A former Participant shall again become an Active Participant (resume active participation in the Plan) on the date he again becomes an Eligible Employee. This date is his Reentry Date. There shall be no duplication of benefits for a Partiapant under this Plan because of more than one period as an Active Participant. SECTION 2.02--INACTIVE PARTICIPANT. An Active Participant shall become an Inactive Participant (stop accruing benefits under the Plan) on the earliest of the following: (a) the ParticipanYs Severance Date, (b) the date the Participant is absent from employment because of leave of absence, (c) the date the Participant is absent from employment because of layoff with right of recall or similar status, or (d) the effective date of complete termination of the Plan under Article V III. An Employee or former Employee who was an Inactive Participant under the Plan on December 3"I, 2001, shall continue to be an Inactive Participant on January 1, 2002. Eligibility for any benefits payable to the Participant or on his behalf and the amount of the benefits shall be determined according to the provisions of the prior document, unless otherwise stated in thts document. SECTION 2.03--CESSATION OF PARTICIPATION. A Participant shall cease to be a Participant on the date he is no longer an Eligible Employee and his Account balance is zero. RESTATEMENT JANUARY "I, 2002 14 ARTICLE II (6-10089) -5 a3- q�s ARTICLE III CONTRIBUTIONS SECTION 3.01--414(h) CONTRIBUTIONS. The Employer shall make 4'14(h) Contributions for each person who meets the requirements of this section. A person meets the requirements of this section if he was an Active Participant at any time during that pay period. For Employees of PHA, the amount of the 414(h) Contribution for each Active Participant shall be calculated per pay period and shall be equal to 5% of his Compensation for the pay period as stated in his Acknowledgement Form. For Employees of the City, the amount of the 414(h) Contribution for each Active Participant shall be calculated per pay period and shall be the amount when added to the Additional Contribution made under Section 3.0"IA shall result in a combined total contribution of 12% of Compensation for the pay period as stated in his Acknowledgement Form. 414(h) Contributions are fully (100%) vested and nonforfeitable. SECTION 3.01A--EMPLOYER CONTRIBUTIONS. PHA shall make an Additional Contribution equal to 7% of the Compensation paid to its Eligibie Employees during the pay period who are Active Participants for that pay period. The City shall make an Additional Contribution equal to a percentage of the Compensation paid to its Eligible Employees during the pay period who are Active Participants for that pay period, equal to the sum of the percentages of compensation used to determine the employer contribution and the additional employer contribution for a"coordinated member" under the Public Employees Retirement Association. Additional Contributions are subject to the Vesting Percentage schedule. The Contributions calculated above for each person shall be credited to his Account when made. Contributions for Employees of PHA are submitted to the Trustee each pay period and Contributions for Employees of the City are submitted to the Trustee monthly. A portion of the Plan asseu resulting from Contributions (but not more than the original amount of those Contributions) may be returned if the Contributions are made because of a mistake of fact. The amount involved must be returned to the Employer within one year after the date the Contributions are made by mistake of fact. Except as provided under this paragraph and Article VIII, the assets of the Plan shall never be used for the benefit of the Employer and are held for the exclusive purpose of providing benefits to Participants and their Beneficiaries and for defraying reasonable expenses of administering the Plan. RESTATEMENT JANUARY 1, 2002 15 ARTICLE III (6-10089) -5 V� /� SECTION 3.01 B- VOLUNTARY CONTRIBUTIONS BY PARTICIPANTS. An Active Participant may make Voluntary Contributions in accordance with nondiscriminatory procedures set up by the Administrative Committee. Voluntary Contributions cannot be less than 1% nor more than IO% of Compensation, or a specified monetary amount not in excess of 10% of his Compensation, as prescribed by the Administrative Committee. A Participant's participation in the Plan is not affected by stopping or changing Voluntary Contributions. An Active Participant's request to start, change or stop his Voluntary Contributions must be made in a manner and in accordance with such rules and time tables as the Administrative Committee may prescribe (including by means of voice response or other electronic system under circumstances the Administrative Committee permits). Voluntary Contributions shall be credited to the ParticipanYs Account when made. The part of the Participant's Account resulting from Voluntary Contributions is fully ('I00%) vested and nonforfeitable at all times. SECTION 3.01C--ROLLOVER CONTRIBUTIONS. A Rollover Contribution may be made by an Eligible Employee if the following conditions are met: (a) The Contribution is of amounts distributed from a plan that satisfies the requirements of Code Section 401(a) or from a"conduit" individual retirement account described in Code Section 408(d) (3) (A). (b) The Contribution is of amounts that the Code permits to be transferred to a plan that meets the requirements of Code Section 401(a). (c) The Contribution is made in the form of a direct rollover under Code Section 40"I(a)(3'I) or is a rollover made under Code Section 402(c) or 408(d)(3)(A) within 60 days after the Eligible Employee receives the distribution. (d) The Eligible Employee furnishes evidence satisfactory to the Administrative Committee that the proposed rollover meets conditions (a), (b), and (c) above. A Rollover Contribution shall be allowed in cash only and must be made according to procedures set up by the Administrative Committee. Rollover Contributions made by an Eligible Employee shall be credited to his Account. The part of the Participant's Account resulting from Rollover Contributions is fully (100%) vested and nonforfeitable at all times. A separate accounting record shall be maintained for that part of his Rollover Contributions consisting of voluntary contributions which were deducted from the Participant's gross income for Federal income tax purposes. RESTATEMENT JANUARY 1, 2002 16 ARTICLE III (6-10059) -5 o3-9y� SECTION 3.02--FORFEITURES. The Nonvested Account of a Participant shall be forfeited as of the Participant's Forfeiture Date. Forfeitures shall be determined at Ieast once during each Plan Year. Forfeitures will be used to pay administrative expenses of the Plan. Effective January 1, 2003, Forfeitures arising on or after that date, which have not been used to pay administrative expenses shall be allocated to Participants who are Employees of an Employer as of the last day of the Plan Year in which such Forfeitures are determined and shall be deemed to be Additional Contributions. The amount allocated to such a Participant shall be equal to the Forfeitures multiplied by the ratio of such Participant's Account balance as of the day of the allocation (before allocation of Contribution or Forfeitures) to the total such Account balances of all such Participants. This amount shall be credited to the ParticipanYs Account. SECTION 3.03--CONTRIBUTION LIMITATION. (a) Definitions. For the purpose of determining the contribution limitation set forth in this section, the following terms are defined. Annual Additions means the sum of the following amounts credited to a Participant's Account for the Limitation Year. ("I) employer contributions; (2) employee contributions; and (3) forfeitures. Annual Additions to a defined contribution plan shall also include allocations under a simplifed employee pension. For this purpose, any Excess Amount applied under (e) and (k) below in the Limitation Year to reduce Contributions shall be considered Annual Additions for such Limitation Year. Compensation means Compensation as defined in the DEFINITION SECTION of Article I. For purposes of applying the limitations of this section, Compensation for a Limitation Year is the Compensation actually paid or made available in gross income during such Limitation Year. For Limitation Years beginning after December 31, 1997, for purposes of applying the limitations of this section, Compensation paid or made available during such Limitation Year shall include any elective deferral (as defined in Code Section 402(g)(3)), and any amount which is contributed or deferred by the Administrative Committee at the election of the Employee and which is not includible in the gross income of the Employee by reason of Code Section 125 or 457. For Limitation Years beginning on and after January'I, 2001, Compensation paid or made available RESTATEMENT JANUARY 1, 2002 17 ARTICLE III (6-"10089) -5 03- 9�-s during such Limitation Year shall include elective amounts that are not includible in the gross income of the Employee by reason of Code Section 'I32(fl(4). De£ned Contribution Dollar Limitation means, for Limitation Years beginning after December 3"I, 2001, $40,000 ($35,000 before January 1, 2002), as adjusted under Code Section 4"I S(d). Excess Amount means the excess of the Participant"s Annual Additions for the Limitation Year over the Maximum Permissible Amount. Limitation Year means the consecutive '12-month period ending on the last day of each Plan Year, including corresponding consecutive 12-month periods before January 1, 1974. If the Limitation Year is other than the calendar year, execution of this Plan (or any amendment to this Plan changing the Limitation Year) constitutes the Administrative Committee's adoption of a written resolution electing the Limitation Year. If the Limitation Year is amended to a different consecutive 12-month period, the new Limitation Year must begin on a date within the Limitation Year in which the amendment is made. Maximum Permissible Amount means the maximum Annual Addition that may be contributed or allocated to a ParticipanYs Account under the Plan for any Limitation Year. This amount shall not exceed the lesser of: (1) (Z) The Defined Contribution Dollar Limitation, or 100 percent (25 percent before January 1, 2002) of the Participant's Compensation for the Limitation Year. If a short Limitation Year is created because of an amendment changing the Limitation Year to a different consecutive "12-month period, the Maximum Permissible Amount will not exceed the Defined Contribution Dollar Limitation multiplied by the following fraction: Number of months in the short Limitation Year 12 Projected Annual Benefit means the annual retirement benefit (adjusted to an actuarially equivalent straight life annuity if such benefit is expressed in a form Uher than a straight life annuity or qualified joint and survivor annuity) to which the Participant would be entitled under the terms of the plan assuming: (1) the Participant will continue employment until normal retirement age under the plan (or current age, if later), and (2) the Participant's Compensation for the current Limitation Year and all other relevant factors used to determine benefits under the Plan will remain constant for all future Limitation Years. (b) If the Participant does not participate in, and has never participaTed in, another qualified plan maintained by the Administrative Committee or a simplified employee pension, as defined in Code Section 408(k), maintained by the Administrative Committee, which provides an Annual Addition, RESTATEMENT JANUARY 1, 2002 18 ARTICLE III (6-10089) -5 D 3 - 9?,s the amount of Annual Additions which may be credited to the Participant's Account for any Limitation Year shall not exceed the lesser of the Maximum Permissible Amount or any other limitaiion contained in this Plan. If the Employer Contribution that would otherwise be contributed or allocated to the Participant's Account would cause the Annual Additions for the Limitation Year to exceed the Maximum Permissible Amount, the amount contributed or allocated shall be reduced so that the Annual Additions for the Limitation Year will equal the Maximum Permissible Amount. (c) Prior to determining the ParticipanYs actual Compensation for the Limitation Year, the Administrative Committee may determine the Maximum Permissible Amount for a Participant on the basis of a reasonable estimation of the Participant's Compensation for the Limitation Year, uniformly determined for all Participants similarly situated. (d) As soon as is administratively feasible after the end of the Limitation Year, the Maximum Permissible Amount for the Limitation Year will be determined on the basis of the Participant's actual Compensation for the Limitation Year. (e) If as a result of a reasonable error in estimating a Participant's Compensation for the Limitation Year or under other facts and circumstances allowed by the Internal Revenue Service, there is an Excess Amount, the excess will be disposed of as follows: (1) Any nondeductible Voluntary Contributions (plus attributable earnings), to the extent they would reduce the Excess Amount, will be returned (distributed, in the case of earnings) to the Participant. (2) If after the application of (1) above an Excess Amount still exists, and the Participant is covered by the Plan at the end of the LimiYation Year, the Excess Amount in the Participant's Account will be used to reduce Contributions for such Participant in the next Limitation Year, and each succeeding Limitation Year if necessary. (3) If after the application of ('I) above an Excess Amount still exists, and the Participant is not covered by the Plan at the end of the Limitation Year, the Excess Amount will be held unallocated in a suspense account. The suspense account will be applied to reduce future Contributions for all remaining Participants in the next Limitation Year, and each succeeding Limitation Year if necessary. (4) If a suspense account is in existence at any time during a Limitation Year pursuant to this (e), it will participate in the allocation of investment gains or losses. If a suspense account is in existence at any time during a particular Limitation Year, all amounts in the suspense account must be allocated and reallocated to Participant's Accounts before any Contributions or any Participant Contributions may be made to the Plan for that Limitation Year. Excess Amounts held in a suspense account may not be distributed to Participants or former Participants. (f) This (f� applies if, in addition to this Plan, the Participant is covered under another qualified defined contribution plan maintained by the Employer or a simplified employee pension maintained by the Employer which provides an Annual Addition during any Limitation Year. The Annual Additions which may be credited to a Participant's Account under this Plan for any such RESTATEMENT JANUARY "I, 2002 19 ARTICLE III (6-10059) -5 �3 - 9zs Limitation Year will noT exceed the Maximum Permissible Amount, reduced by the Annual Additions credited to a Participant's account under the other qualified defined contribution plans and simplified employee pensions for the same Limitation Year. If the Annual Additions with respect to the Participant under other qualified defined contribution plans and simplified employee pensions maintained by the Administrative Committee are less than the Maximum Permissible Amount, and the Employer Contribution that would otherwise te contributed or allocated to the Participant's Account under this Plan would cause the Annual Additions for the Limitation Year to exceed this limitation, the amount contributed or allocated will be reduced so that the Annual Additions under all such plans and funds for the Limitation Year will equal the Maximum Permissible Amount. If the Annual Additions with respect to the Participant under such other qualified defined contribution plans and simplified employee pensions in the aggregate are equal to or greater than the Maximum Permissible Amount, no amount will be contributed or allocated to the Participant's Account under this Plan for the Limitation Year. (g) Prior to determining the Participant's actual Compensation for the Limitation Year, the Administrative Committee may determine the Maximum Permissible Amount for a Participant in the manner described in (c) above. (h) As soon as administratively feasible after the end of the Limitation Year, the Maximum Permissible Amount for the Limitation Year will be determined on the basis of the Participant's actual Compensation for the Limitation Year. (i) If pursuant to (h) above or as a result of the allocation of forfeitures or as a result of a reasonable error in determining the amount of elective deferrals (within the meaning of Code Section 402(g)(3)) that may be made with respect to any individual under the limits of Code Section 415, a Participant's Annual Additions under this Plan and such other plans would result in an Excess Amount for a Limitation Year, the Excess Amount will be deemed to consist of the Annual Additions last allocated, except that Annual Additions attributable to a simplified employee pension will be deemed to have been allocated first, regardless of the actual allocation date. �j) If an Excess Amount was allocated to a Participant on an allocation date of this Plan which coinades with an allocation date of another plan, the Excess Amount attributed to this Plan will be the product of: (1) the total Excess Amount allocated as of such date, times (2) the ratio of (i) the Annual Addition allocated to the Participant for the Limitation Year as of such date under this Plan to (ii) the total Annual Additions allocated to the Participant for the Limitation Year as of such date under this and all other qualified defined contribution plans. (k) Any Excess Amount attributed to this Plan will be disposed of in the manner described in (e) above. (I) The Annual Additions limitation for an individual who is a participant in both a defined benefit plan and a defined contribution plan maintained by the same Employer, as described in Code Section 415(e), ceased to be effective under the Plan for limitation years beginning after December 31, "I 999. RESTATEMENT JANUARY 1, 2002 20 ARTICLE III (6-10089) -5 b3 - 9zs r_�:�,��u INVESTMENT OF CONTRIBUTIONS SECTION 4.01--INVESTMENT OF CONTRIBUTIONS. The handling of Contributions is governed by the provisions of the Trust Agreement, the annuity contract, and any other funding arrangement in which the Plan Fund is or may be held or invested. To the extent permitted by the Trust Agreement, annuity contract, or other funding arrangement, the parties named below shall direct the Contributions to any of the investment options available under the Trust Agreement or the guaranteed benefit policy portion of an annuity contract and may request the transfer of amounts resulting from those Contributions between such investment options and investment vehicles or the transfer of amounts between any guaranteed benefit policy portion of an annuity contract and such investment options and investment vehicles. A Participant may not direct the Trustee or Insurer to invest the Participant's Account in collectibles. To the extent that a Participant who has investment direction fails to give timely direction, the Administrative Committee shall direct the investment of his Account. If the Administrative Committee has investment direction, such Account shall be invested ratably in the investment vehicles available under the Trust Agreement in the same manner as the Accounts of all other Participants who do not direct their investments. The Administrative Committee shall have investment direction for amounts which have not been allocated to Participants. To the extent an investment is no longer available, the Administrative Committee may require that amounts currently held in such investment be reinvested in other investments. (a) (b) (c) (d) Additional Contributions: The Participant shall direct the investmeni of Additional Contributions and transfer of amounts resulting from those Coritributions. 414(h) Contributions: The Participant shall direct the investment of 4"14(h) Contributions and transfer of amounts resulting from those Contributions. Participant Contributions: The Participant shall direct the investment of Participant Contributions and transfer of amounts resulting from those Contributions. Rollover Contributions: The Participant shall direct the investment of Rollover Contributions and transfer of amounts resulting from those Contributions. The Participant's direction shall specify the percentage. A Participant may elect to transfer investments from any investment fund to any other investment fund. The Participant's transfer election shall specify either (i) a percentage, in the percentage increments prescribed by the Administrator, of the amount eligible for transfer, which percentage may not exceed 100 percent, or (ii) a dollar amount that is to be transferred. Subject to any restrictions pertaining to a particular investment fund, a ParticipanYs transfer election may be made effective as of the date or dates prescribed by the Administrator. All Contributions are forwarded by the Administrative Committee to the Trustee to be deposited in the Trust Fund. RESTATEMENT JANUARY 1, 2002 21 ARTICLE IV (6-10089) -5 b3- 9�5 SECTION 4.02--PURCHASE OF LIFE INSURANCE CONTRACTS. For purposes of providing the death benefit described in the SPECIAL DEATH BENEFIT SECTION of Article VI, the Administrator may direct the Trustee to apply a portion of the interest of a Participant in the Trust toward the purchase, from a legal reserve life insurance company, of a life insurance contract or contracts, including a term life insurance contract or contracts, on the life of such Participant; provided, however, that if any portion of a Participant's interest is used during any year to purchase such a contract, each other Participant shall be given the option to have the same proportion of his interest applied toward the purchase of such a contract for him. AIl such contracts shall designate the Trustee as the sole owner with exclusive power to exercise all rights, privileges, options and elections granted or permitted thereunder; however, the exercise of such power by the Trustee shall be subject to the right of the Administrator to direct the Trustee with respect thereto or to require the Trustee to obtain its approval before exercising any such power. Subject to any restriction pertaining to a particularinvestment fund, amounts needed to purchase a life insurance contract or contracts shall be charged against the Participant's interest in the Investment Fund as directed by the Administrator. SECTION 4.03--PAYMENT OF PREMIUMS. The Trustee, upon written instructions from the Administrator, shall pay each premium on any such contract or contracts held for a Participant and shall charge such premium payment to the Account of such Participant. The Trustee shall be under no obligation to pay a�y premium; however, unless there are sufficient funds available from the interest of such Participant in the Trust to make such payment. Each contract shall provide that all dividends and other credits payable thereunder, if any, shall be applied in reduction of premiums, except that any postmortem or termination dividend shall be added to and become a part of the proceeds payable to the Beneficiary under the contract. SECTION 4.04--OVERRIDING CONDITIONS AND LIMITATIONS. Notwithstanding any other provision of the Plan to the contrary, the provisions of the Section shall govern: (a) (b) In the event of any conflict between the provisions of the Plan and the terms of any insurance contract or contracts purchased pursuant to this Article, the provisions of the Plan shall control. At no time shall the aggregate of the premiums paid for the life insurance contract or contracts upon the life of any Participant hereunder equal or exceed 25 percent of the Employer Contributions allocated to him under the Plan. (c) At all times each such contract upon the life of any Participant shall be held by the Trustee separate and apart from the Trust. The value of such contract shall not be taken into account in valuing the assets of the Trust nor shall such value be considered in determining the amount of a ParticipanT's interest in the Trust. (d) The Administrator may direct the Trustee to have the purchase of insurance on a Participant's life discontinued. Any such direction shall specify the date on which such purchase is to be discontinued, but in no event shall any such notice be effective with respect to premiums which have been paid. The Trustee shall surrender any contract or contracts held on the ParticipanYs life RESTATEMENT JANUARY'I, 2002 22 ARTICLE IV (6-10089) -5 03 - 9�-s on the date specified in the notice. The cash surrender value, if any, of any such contracts shall be added to the Trust when received by the Trustee and shall be credited to the ParticipanYs Account. SECTION 4.05--LIFE INSURANCE DEATH BENEFITS Upon the death of any Participant on whose life any contract is held hereunder prior to his termination of employment with an Employer, the proceeds of such contract shall be paid to the Trustee for deposit in the Participant's Account, to be paid to the Participant's Beneficiary in accordance with the distribution provisions of the Plan. RESTATEMENT JANUARY 1, 2002 23 ARTICLE IV (6-10059) -5 03 - 9�.s ARTICLE V BENEFITS SECTION 5.01--RETIREMENT BENEFITS. On a Participant's Retirement Date, his Vested Account �all be distributed to him according to the distribution of benefits provisions of Article VI. SECTION 5.02--DEATH BENEFITS. If a Participant dies before his Annuity Starting Date, his Vested Account shall be distributed according to the distribution of benefits provisions of Article VI. SECTION 5.03--VESTED BENEFITS. An Inactive Participant may elect, but is not required, to receive a distribution of his Vested Account after he ceases to be an Employee. A distribution under this paragraph shall be a retirement benefit and shall be distributed to the Participant according to the distribution of benefits provisions of Article VI. A Participant may not elect to receive a distribution under the provisions of this section after he again becomes an Employee until he subsequently ceases to be an Employee and meets the requirements of this section. If an Inactive Participant does not receive an earlier distribution, upon his Retirement Date or death, his Vested Account shall be distributed according to the provisions of the RETIREMENT BENEFITS SECTION or the DEATH BENEFITS SECTION of Article V. SECTION 5.04--WHEN BENEFITS START. The Participant may elect to have his benefits begin after the later of his Normal Retirement Date or the date he ceases to be an Employee, subject to the following provisions of this section. The Participant shall make the election in writing. 7he election must describe the date the benefits will begin and may include the form of payment. The Participant shall not elect a date for beginning benefits or a form of distribution that would result in a benefit payable when he dies which would be more than incidental within the meaning of governmental regulations. A distribution shall be made to the ParCicipant beginning as of the date selected by the Administrator after giving due consideration to all circumstances known to the Administrator relating to the Participants welfare, and any request from the Participant. Benefits shall begin by the Participant's Required Beginning Date, as defined in the DEFINITIONS SECTION of Article VII. RESTATEMENT JANUARY "I, 2002 24 ARTICLE V(6-10089) -5 D3 -9�5 SECTION 5.05--WITHDRAWAL BENEFITS. A Participant may withdraw any part of his Vested Account resulting from Voluntary Contributions. A Participant may make such a withdrawal at any time. A request for withdrawal shall be made in such manner and in accordance with such rules as the Administrative Committee will prescribe for this purpose (including by means of voice response or other electronic means under circumstances the Administrative Committee permits). Withdrawals shall be a retirement benefit and shall be distributed to the Participant according to the distribution of benefits provisions of Article VI. SECTION 5.06--LOANS TO PARTICIPANTS. Loans are not allowed under this Plan. RESTATEMENT JANUARY 1, 2002 25 ARTICLE V(6-10089) -5 D3 - 9�-S ARTICLE V I DISTRIBUTION OF BENEFITS SECTION 6.01--FORMS OF DISTRIBUTION. Retirement and Death Benefits. Distribution of a Participant's vested interest in his Account shall be made to the Participant, or his Beneficiary, as the case may be in any one, a� a combination of, the following forms of payment, as elected by the Participant or Beneficiary: (a) A single sum payment. (b) Installment payments. Distribution of all or a portion of a Participant's vested interest in his Account shall be made in a series of installments and/or distributions as designated by the Participant over a period not exceeding the life expectancy of the Participant, or the Participant's Beneficiary, if the Participant has died, or a period not exceeding the joint life and last survivor expectancy of the Participant and his Beneficiary. A Participant whose Severance Date occurs shall receive distribution of his vested interest in his Account beginning as of the date selected by the Administrative Committee after giving due consideration to all circumstances known to the Administrative Committee relating to such Participant"s welfare and any request from the Participant. If a Participant dies prior to the date distribution of his vested interest in his Account, his Beneficiary shall receive distribution of the Participant's vested interest in the Participant's Account beginning as of the date selected by the Administrative Committee after giving due consideration to all circumstances known to the Administrative Committee relating to such Beneficiary's welfare and any request from the Beneficiary. SECTION 6.02--SPECIAL DEATH BENEFIT Notwithsta�ding any other provision of the Plan to the contrary, if a Participant dies while employed as an Employee, the death benefit payable to his Beneficiary shall be provided by combining the balance available to the Participant in his Account and term life insurance such that the total death benefit payable is 18 times the Participant's monthly Compensation at time of death. Such term life insurance shall be purchased by the Trustees as provided in Article IV. SECTION 6.03--ELECTION PROCEDURES. The Participant shall make any election under this section in writing. The Administrative Committee may require such individual to complete and sign any necessary documents as to the provisions to be made. Any election permitted under (a) below shall be subject to the election provisions of (b) below. (a) Death Benefits. A Participant may elect his Beneficiary. His Beneficiary shall receive a distribution of the Participant's death benefits beginning as of the date selected by the Administrative RESTATEMENT JANUARY 1, 2002 26 ARTICLE VI (6-10089) -5 p3-9�5 Committee after giving due consideration to all circumstances known to the Administrative Committee relating to such Beneficiary's welfare and any request from the Beneficiary. (b) Election. The Participant may make an election at any time during the election period. The Participant may revoke the election made (or make a new election) at any time and any number of times during the election period. (1) Election Period for Death Benefits. A Participant may make an election as to death benefits at any time before he dies. RESTATEMENT JANUARY 1, 2002 27 ARTICLE VI (6-10089) -5 D3- 9�-s ARTICLE VII DISTRIBUTION REQUIREMENTS SECTION 7.01--APPLICATION. The optional forms of distribution are only those provided in Article VI. An optional form of distribution shall not be permitted unless it meets the requirements of this article. The timing of any distribution must meet the requirements of this article. SECTION 7.02--DEFINITIONS. For purposes of this article, the following terms are defined: Applicable Life Expectancy means Life Expectancy (or Joint and Last Survivor Expectancy) calculated using the attained age of the Participant (or Designated Beneficiary) as of the Participant's (or Designated Beneficiary's) birthday in the applicable calendar year reduced by one for each calendar year which has elapsed since the date Life Expectancy was first calculated. If Life Expectancy is being recalculated, the Applicable Life Expectancy shall be the Life Expectancy so recalculated. The applicable calendar year shall be the first Distribution Calendar Year, and if Life Expectancy is being recalculated, such succeeding calendar year. Designated Bene£ciary means ihe individual who is designated as the beneficiary under the Plan in accordance with Code Section 401(a)(9) and the regulations thereunder. Distribution Calendar Year means a calendar year for which a minimum distribution is required. For distributions beginning before the Participant's death, the first Distribution Calendar Year is the calendar yearimmediately preceding the calendar year which contains the Participant's Required Beginning Date. For distributions beginning after the Participant's death, the first Distribution Calendar Year is the calendar year in which distrlbutions are required to begin pursuant to (e) of the DISTRIBUTION REQUIREMENTS SECTION of this article. Joint and Last Survivor Expectancy means �oint and last survivor expectancy computed using the expected return multiples in Table VI of section 1.72-9 of the Income Tax Regulations. Unless otherwise elected by the Participant by the time distributions are required to begin, life expectancies shall be recalculated annually. Such election shall be irrevocable as to the Participant and shall apply to all subsequent years. The life expectancy of a nonspouse Beneficiary may not be recalculated. Life Expectancy means life expectancy computed using the expected return multiples in Table V of section 1.72-9 of the Income Tax Regulations. Unless otherwise elected by the Participant (or spouse, in the case of distributions described in (e)(2)(ii) of the DISTRIBUTION REQUIREMENTS SECTION of this article) by the time distributions are required to begin, life expectancy shall be recalculated annually. Such election shall be irrevocable as to the RESTATEMENTJANUARY 1, 2002 28 ARTICLE VII (6-10089) -5 03 - 9� Parcicipant (or spouse) and shall apply to all subsequent years. The life expectancy of a nonspouse Beneficiary may not be recalculated. ParticipanYs Benefit means: (a) The Account balance as of the last Valuation Date in the calendar year immediately preceding the Distribution Calendar Year (valuation calendar year) increased by the amount of any contributions or forfeitures allocated to the Account balance as of the dates in the valuation calendar year after the Valuation Date and decreased by distributions made in the valuation calendar year after the Valuation Date. (b) Exception for Second Distribution Calendar Year. For purposes of (a) above, if any portion of the minimum distribution for the first Distribution Calendar Year is made in the second Distribution Calendar Year on or before the Required Beginning Date, the amount of the minimum distribution made in the second Distribution Calendar Year shall be treated as if it had been made in the immediately preceding Distribution Calendar Year. Required Beginning Date means, for a Participant, the April 1 of the calendar year following the later of the calendar year in which he attains age 70 "I /2 or the calendar year in which he retires. SECTION 7.03--DISTRIBUTION REQUIREMENTS. (a) General Rules. (1) The requirements of this article shall apply to any distribution of a Participant's interest and shall take precedence over any inconsistent provisions of this Plan. Unless otherwise specified, the provisions of this article apply to calendar years beginning after December 31, 1984. (2) All distributions required under this article shall be determined and made in accordance with the proposed regulations under Code Section 401(a)(9), including the minimum distribution incidental benefit requirement of section 1.401(a)(9)-2 of the proposed regulations. (b) Required Beqinninq Date. The entire interest of a Participant must be distributed or begin to be distributed no later than the Participant's Required Beginning Date. (c) Limits on Distribution Periods. As of the first Distribution Calendar Year, distributions, if not made in a single sum, may only be made over one of the following periods (or combination thereof�: ("I) the life of the Participant, (2) the life of the Participant and a Designated Beneficiary, (3) a period certain not extending beyond the Life Expectancy of the Participant, or (4) a period certain not extending beyond the Joint and Last Survivor Expectancy of the Participant and a Designated Beneficiary. RESTATEMENT JANUARY 1, 2002 29 ARTICLE VII (6-10089) -5 03 - 9�S" (d) Determination of Amount to be Distributed Each Year. If the Participant's interest is to be distributed in other than a single sum, the following minimum distribution rules shall apply on or after the Required Beginning Date: ('I) Individual Account. (i) If a Participant's Benefit is to be distributed over A. a period not extending beyond the Life Expectancy of the Participant or the Joint Life and Last Survivor Expectancy of the Participant and the Participant's Designated Beneficiary, or B, a period not extending beyond the Life Expectancy of the Designated Beneficiary, the amount required to be distributed for each calendar year beginning with the distributions for the first Distribution Calendar Year, must be at least equal to the quotient obtained by dividing the Participant's Benefit by the Applicable Life Expectancy. (ii) For calendar years beginning before January 1, 1989, if the Participant's spouse is not the Designated Beneficiary, the method of distribution selected must assure that at least 50 percent of the present value of the amount available for distribution is paid within the Life Expectancy of the Participant. (iii) For calendar years beginning after December 31, "1988, the amount to be distributed each year, beginning with distributions for the first Distributio� Calendar Year shall not be less than the quotient obtained by dividing the Participant's Beneflt by the lesser of: A. the Applicable Life Expectancy, or B. if the Participant's spouse is not the Designated Beneficiary, the applicable divisor determined from the table set forth in Q&A-4 of seciion 1.401(a)(9)-2 of the proposed regulations. Distributions after the death of the Participant shall be distributed using the Applicable Life Expectancy in (1)(i) above as The relevant divisor without regard to section 1.401(a}(9)-2 of the proposed regulations. (iv) The minimum distribution required for the Participant's first Distribution Calendar Year must be made on or before the Participant's Required Beginning Date. The minimum distribution for other calendar years, including the minimum distribution for the Distribution Calendar Year in which the Participant's Required Beginning Date occurs, must be made on or before December 31 of that Distribution Calendar Year. RESTATEMENT JANUARY 1, 2002 30 ARTICLE VII (6-10089) -5 o3�g�� (2) Other Forms. If the Participant's Benefit is distributed in the form cf an annuity purchased from an insurance company, distribuYions thereunder shall be made in accordance with the requirements of Code Section 40l (a)(9) and Yhe proposed regulations thereunder. (e) Death Distribution Provisions. (1) Distribution Beqinninq Before Death. If the Participant dies after distribution of his interest has begun, the remaining portion of such interest will continue to be distributed at least as rapidly as under the method of distribution being used prior to the Participant's death. (2) Distribution Beqinninq After Death. (i) If the Participant dies before distribution of his interest begins, distribution of the Participant's entire interest shall be completed by December 31 of the calendar year containing the fifth anniversary of the Participant's death except to the extent that an election is made to receive distributions in accordance wiih A or B below: A, if any portion of the Participant's interest is payable to a Designated Beneficiary, distributions may be made over the life or over a period certain not greater than the Life Expectancy of the Designated Beneficiary beginning on or before December 31 of the calendar year immediately following the calendar year in which the Participant died; B. if the Designated Beneficiary is the Participant's surviving spouse, the date distributions are required to begin in accordance with A above shall not be earlier than the later of: December 31 of the calendar year immediately following the calendar year in which the Participant died, or 2. December 31 of the calendar year in which the Participant would have attained age 70 1 /2. (ii) If the Participant has not made an election pursuant to this (e)(2) by the time of his death, the Participant's Designated Beneficiary must elect the method of distribution no later than the earlier of: A. December 31 of the calendar year in which distributions would be required to begin under this subparagraph, or B. December 31 of the calendar year which contains the fifth anniversary of the date of death of the Participant. (iii) If the Participant has no Designated Beneficiary, or if the Designated Beneficiary does not elect a method of distribution, distribuTion of the Participant's entire interest must be completed by December 31 of the calendar year containing the fifth anniversary of the Participant's death. RESTATEMENT JANUARY 1, 2002 3"I ARTICLE VII (6-10089) -5 03- �25 (3) For purposes of (e)(2) above, if the surviving spouse dies after the Participant, but before payments to such spouse begin, the provisions of (e)(2) above, with the exception of (e)(2)(i)(B) therein, shall be applied as if the surviving spouse were the Participant. (4) For purposes of this (e), distribution of a Participant's interest is considered to begin on the Participant's Required Beginning Date (or if (e)(3) above is applicable, the date distribution is required to begin to the surviving spouse pursuant to (e)(2) above). If distribution in the form of an annuity irrevocably begins to the Participant before the Required Beginning Date, the date distribution is considered to begin is the date distribution actually begins. SECTION 7.04--INABILITY TO LOCATE PAYEE. If any benefit becomes payable to any person, or to the executor or administrator of any deceased person, and if that person or his executor or administrator does not present himself to the Administrator within a reasonable period after the Administrator mails written notice of his eligibility to receive a distribution hereunder to his last known address and makes such other reasonable and diligent effort to locate the person as the Administrator determines, that benefit will be forfeited. However, if the payee later files a claim for that benefit, the benefit will be restored by the Adminisirator, using forfeitures, fees, and associated income as a source of funds. SECTION 7.05--REEMPLOYMENT OF A PARTICIPANT. If a Participant whose Severance Date has occurred is reemployed by an Employer, he shall lose his right to a previously forfeited portion of the Additional Contribution and to any distribution or further distributions from the Trust arising from his prior Severance Date and his interest in the Trust shall thereafter be treated in the same manner as that of any other Participant whose Severance Date has not occurred. SECTION 7.06--FACILITY OF PAYMENT. If the Administrative Committee finds that any individual to whom an amount is payable hereunder is incapable of attending to his finanaal affairs because of any mental or physical condition, including the infirmities of advanced age, such amount (unless prior claim therefor shall have been made by a duly qualified guardian or other legal representative) may, in the discretion of the Administrative Committee, be paid to another person for the use or benefit of the individual found incapable of attending to the individual's financial affairs or in satisfaction of legal obligations incurred by or on behalf of such individual. The Trustee shall make such payment only upon receipt of written instructions to such effect from the Administrative Committee. Any such payment shall be charged to the Account from which any such payment would have otherwise have been paid to the individual found incapable of attending to the individual's financial affairs and shall be a complete discharge of any liability therefor under the Plan. RESTATEMENT JANUARY 1, 2002 32 ARTICLE VII (6-10089) -5 03 - 9zs ARTICLE VIII 7ERMINATION OF THE PLAN SECTION 8.01--TERMINATION. The Employers expect to continue the Plan indefinitely; however, the Employers reserve the right, by joint action of their governing bodies and subject to written approval of the Department of Housing and Urban Development, to terminate the Plan in whole or in part at any time. Complete discontinuance of Contributions constitutes complete termination of the Plan. The Account of each Participant shall be fully (100%) vested and nonforfeitable as of the effective date of complete termination of the Plan. The Account of each Participant who is included in the group of Participants deemed to be affected by the partial termination of the Plan shall be fully (100%) vested and nonforteitable as of the effective date of the partial termination of the Plan. The Participant's Account shall continue to participate in the earnings credited, expenses charged, and any appreciation or depreciation of the Investment Fund until his Vested Account is distributed. A Participant's Account may be distributed to the Participant after the effective date of the complete termination of the Plan. A distribution under this article shall be a retirement benefit and shall be distributed to the Participant according to the provisions of Article VI. Upon complete termination of the Pian, no more Employees shall become Participants and no more Contributions shall be made. The assets of this Plan shall not be paid to the Employers at any time, except that, after the satisfaction of all liabilities under the Plan, any assets remaining may be paid to the Employers. The payment may not be made if it would contravene any provision of law. The written approval of the Department ff Housing and Urban Development shall be required before termination of the Plan with respect to all employers or discontinuance of contributions by PHA. SECTION 8.02--WITHDRAWAL OF AN EMPLOYER. An Employer may withdraw from the Plan at any time upon notice to the Administrative Committee and shall thereupon cease to be an Employer for all purposes of the Plan. An Employer shall be deemed automatically to withdraw from the Plan in the event of its complete discontinuance of contributions. Upon the withdrawal of an Employer, the withdrawing Employer shall determine whether a partial termination has occurred with respect to its Employees. In the event that the withdrawing Employer determines a partial termination has occurred, the action specified in Section 8.01 shall be taken with respect only to Participants who are employed solely by the withdrawing Employer. RESTATEMENT JANUARY 1, 2002 33 ARTICLE VIII (6-10089) -5 03- 9zs ARTICLE IX ADMINISTRATION OF THE PLAN SECTION 9.01--ESTABLISHMENT OF ADMINISTRATIVE COMMITTEE. The Administrative Committee shall consist of five members appointed as follows: (a) The board of commissioners of PHA shall appoint one member who has been nominated jointly by Locals 70 and 132. If a nomination by the Locals is not timely made, nomination will be made by an election by PHA employees currently or formerly covered who are Participants. (b) The PHA board of commissioners shall appoint one member on its own nomination. (c) The Board of Commissioners of the PHA shall appoint one member who has been nominated through election by administrative employees who currently or formerly held positions covered by Local 1854 (AFSCME) or by Personnel Policies for Supervisory and Confidential Employees. (d) The Saint Paul City Council of the City shall appoint one member on its own nomination. (e) The Saint Paul City Council shall appoint one member who has been nominated by election by Participants who are current or were former City employees. Each member of the Administrative Committee shall serve a three-year term. SECTION 9.02--ADMINISTRATION. Subject to the provisions of this article, the Administrator has complete control of the administration of the Plan. The Administrative Committee has all the powers necessary for it to properly carry out its administrative duties. Not in limitation, but in amplification of the foregoing, the Administrative Committee has complete discretion to construe or interpret the provisions of the Plan, including ambiguous provisions, if any, and to determine all questions that may arise under the Plan, including all questions relating to the eligibility of Employees to participate in the Plan and the amount of benefit to which any Participant or Beneficiary may become entitled. The Administrative Committee's decisions upon all matters within the scope of its authority shall be final. Unless otherwise set out in the Plan or Trust Agreement, the Administrative Committee may delegate recordkeeping and other duties which are necessary for the administration of the Plan to any person, firm or named fiduciaries which agrees to accept such duties. The Administrative Committee shall be entitled to rely upon all tables, valuations, certificates and reports furnished by the consultant or actuary appointed by the Administrative Committee opinions given by any counsel selected or approved by the Administrative Committee. In addition to whatever rights of indemnification the members of the Administrative Committee or any employee or employees of PHA and the City to whom any power, authority, or responsibility is delegated pursuant to this section, may be entitled under the organizational authority or regulations of PHA and the City, RESTATEMENT JANUARY 1, 2002 34 ARTICLE IX (6-10089) -5 03 - �zs" under any provision of law, or under any other agreement, PHA and the City shall satisfy any Iiability actually and reasonably incurred by any such person or persons, including expenses, attorneys' fees, judgments, fines, and amounts paid in settlement (other than amounts paid in settlement not approved by PHA and the City), in connection with any threatened, pending or completed action, suit, or proceeding which is related to the exercising or failure to exercise by such person or persons of any of the powers, authority, responsibilities, or discretion as provided under the Plan, or reasonably believed by such person or persons to be provided hereunder, and any action taken by such person or persons in connection therewith, unless the same is judicially determined to be the result of such person or persons" gross negligence or wiliful misconduct. Any act authorized, permitted, or required to be taken under the Plan by the Administrator and which has not been delegated may be taken by a majority of the members of the Administrative Committee, either by vote at a meeting, or in writing without a meeting, or by the employee or employees of PHA and the City designated by the Administrative Committee to carry out such acts on behalf of the Administrator. All notices, advice, directions, certifications, approvals, and instructions required or authorized to be given by the administrator as under the Plan shall be in writing and signed by either (i) a majority of the members of the Administrative Committee or by such member or members as may be designated by an instrument in writing, signed by all the members thereof, as having authority to execute such documents on its behalf, or (ii) the employee or employees authorized to act for the Administrator in accordance with the provisions of this section. The Administrator shall receive all claims for benefits by Participants, former Participants and Benefiaaries. The Administrator shall determine all facts necessary to establish the right of any claimant to benefits and the amount of those benefits under the provisions of the Plan. The Administrative Committee may establish rules and procedures to be followed by claimants in filing claims for benefits, in furnishing and verifying proofs necessary to determine age, and in any other matters required to administer the Plan. SECTION 9.03--EXPENSES. Expenses of the Plan, to the extent that the Administrative Committee does not pay such expenses, may be paid out of the assets of the Plan provided that such payment is consistent with any law to which the Plan is subject. Such expenses include, but are not limited to, expenses for recordkeeping and other administrative services; fees and expenses of the Trustee; expenses for investment education service; and direct costs that the Administrative Committee incurs with respect to the Plan. SECTION 9.04--RECORDS. All acts and determinations of the Administrative Committee and Administrator shall be duly recorded. All these records, together with other documents necessary for the administration of the Plan, shall be preserved in the Administrative Committee's custody. Writing (handwriting, typing, printing), photostating, photographing, microfilming, magnetic impulse, mechanical or electrical recording, or other forms of data compilation shall be acceptable means of keeping records. RESTATEMENT JANUARY "I, 2002 35 ARTICLE IX (6-"10089) -5 D3 - 9zs SECTION 9.05--INFORMATION AVAILABLE. Any Participant in the Plan or any Beneficiary may examine copies of this Plan, the Annuity Contract or any other instrument under which the Plan was established or is operated. The Administrative Committee shall maintain alI of the items listed in this section in its office, or in such other place or places as it may designate in order to comply with governmental regulations. These items may be examined during reasonable business hours. Upon the written request of a Participant or Beneficiary receiving benefiu under the Plan, the Administrative Committee shall furnish him with a copy of any of these items. The Administrative Committee may make a reasonable charge to the requesting person for the copy. SECTION 9.06--EXERCISE OF DISCRETIONARY AUTHORITY. The Administrative Committee and any other person or entity who has authority with respect to the management, administration, or investment of the Plan may exercise that authority in its/his full discretion, subject only to the duties imposed under any law to which the Plan is subject. This discretionary authority includes, but is not limited to, the authority to make any and all factual determinations and interpret all terms and provisions of the Plan documents relevant to the issue under consideration. The exercise of authority will be binding upon all persons; will be given deference in all courts of law; and will not be overturned or set aside by any court of law unless found to be arbitrary and capricious or made in bad faith. SECTION 9.07--CLAIMS REVIEW PROCEDURE. Whenever a claim for benefits under the Plan filed by any person (herein referred to as the "Claimant") is denied, whether in whole or in part, the claims reviewer appointed by the Administrative Committee shall transmit a written notice of such decision to the Claimant within 90 days of the date the claim was filed or, if special circumstances require an extension, within 180 days of such date, which notice shall be written in a manner calculated to be understood by the Claimant and shall contain a statement of (i) the specific reasons for the denial of the claim, (ii) specific reference to pertinent Plan provisions on which the denial is based, and (iii) a description of any additional material or information necessary for the Claimant to perfect the claim and an explanation of why such information is necessary. The notice shall also include a statement advising the Claimant that, within 60 days of the date on which he receives such, he may obtain review of such decision in accordance with the procedures hereinafter set forth. Within such 60-day period, the Claimant or his authorized representative may request that the claim denial be reviewed by filing with the Administrative Committee a written request therefor, which request shall contain the following information: (a) the date on which the Claimant"s request was filed with the Administrative Committee; provided, however, that the date on which the Claimant's request for review was in fact filed with the Administrative Committee shall control in the event that the date of the actual filing is later than the date stated by the Claimant pursuant to this paragraph; (b) the specific portions of the denial of his claim which the Claimant requests the Administrative Committee to review; (c) a statement by the Claimant setting forth the basis upon which he believes the Administrative Committee should reverse the previous denial of his claim for benefits and accept his claim as made; and RESTATEMENT JANUARY 1, 2002 36 ARTICLE IX (6-10089) -5 03 - 9�s (d) any written material (offered as exhibits) which the Claimant desires the Administrative Committee to examine in its consideration of his position as stated to pursuant (c) of this Section. Within 60 days of the date determined pursuant to paragraph (a) of this Section or, if special circumstances require an extension, within 120 days of such date, the Administrative Committee shall conduct a full and fair review of the decision denying the Claimant's claim for benefits and shall render its written decision on review to the Claimant. The Administrative Committee's decision on review shall be written in a manner calculated to be understood by the Claimant and shall specify the reasons and Plan provisions upon which the Administrative Committee's decision was based. RESTATEMENT JANUARY 1, 2002 37 ARTICLE IX (6-10089) -5 03 - 9�-s ►_�:�� GENERAL PROVISIONS SECTION 10.01--AMENDMENTS. The Employers may amend this Plan at any time, including any remedial retroactive changes, by joint action of their governing bodies, to comply with any law or regulation issued by any governmental agency to which the Plan is subject or to make other changes to the Plan. Any such amendment shall be by written instrument executed by those person or persons authorized by the governing bodies of the Employers to execute such documents on behalf of the Employers. However, the Employer shall make no amendment to the Plan which shall permit any part of the Plan or Trust to revert to an Employer or be used or be diverted to purposes other than the exclusive benefit of Participants and Beneficiaries. Moreover, no such amendment may change the rights, powers, and duties of the Trustees without the Trustee's consent. SECTION 10.02--0IRECT ROLLOVERS. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a Distributee's election under this section, a Distributee may elect, at the time and in the manner prescribed by the Administrative Committee, to have any portion of an Eligible Rollover Distribution paid directly to an Eligible Retirement Plan specified by the Distributee in a Direct Rollover. SECTION 10.03--PROVISIONS RELATING TO THE INSURER AND OTHER PARTIES. The obligations of an Insurer shall be governed solely by the provisions of the annuity contract. The Insurer shall not be required to perform any act not provided in or contrary to the provisions of the annuity contract. Each annuity contract when purchased shall comply with the Plan. See the CONSTRUCTION SECTION of this article. Any issuer or distributor of investment contracts or securities is governed solely by the terms of its policies, written investment contract, prospectuses, security instruments, and any other written agreements entered into with the Trustee with regard to such investment contracts or securities. Such Insurer, issuer or distributor is not a party to the Plan, nor bound in any way by the Plan provisions. Such parties shall not be required to look to the terms of this Plan, nor to determine whether the Administrative Committee or the Trustee have the authority to act in any particular manner or to make any contract or agreement. Until notice of any amendment or termination of this Plan or a change in Trustee has been received by the Insurer at its home office or an issuer or distributor at their principal address, they are and shall be fully protected in assuming that the Plan has not been amended or terminated and in dealing with any party acting as Trustee according to the latest information which they have received at their home office or principal address. RESTATEMENT JANUARY 1, 2002 38 ARTICLE X(6-10089) -5 03- 9z5 SECTION 10.04--EMPLOYMENT STATUS. Nothing contained in this Plan gives an Employee the right to be retained in the Employer's employ or to interfere with the Employer's right to discharge any Employee. SECTION 10.05--RIGHTS TO PLAN ASSETS. An Employee shall not have any right to or interest in any assets of the Plan upon termination of employment or otherwise except as speciFically provided untler this Plan, and then only to the extent of the benefits payable to such Employee according to the Plan provisions. Any final payment or distribuTion to a Participant or his legal representative or to any Beneficiaries of such Participant under the Plan provisions shall be in full satisfaction of all claims against the Plan, the Insurer, the Trustee, and the Administrative Committee arising under or by virtue of the Plan. SECTION 10.06--BENEFICIARY. Each Participant may name a Beneficiary to receive any death benefit that may arise out of his participation in the Plan. The Participant may change his Beneficiary from time to time. The Participant's Beneficiary designation and any change of Beneficiary shall be subject to the provisions of the ELECTION PROCEDURES SECTION of Article VI. It is the responsibility of the Participant to give written notice to the Insurer of the name of the Beneficiary on a form furnished for that purpose. The Administrative Committee may maintain records of Beneficiary designations for Participants. In that event, the written designations made by Participants shall be filed with the Administrative Committee. If a Participant dies before his Retirement Date, the Administrative Committee shall certify to the Insurer the Beneficiary designation on its records for the Participant. If there is no Benefiaary named or surviving when a Participant dies, his Beneficiary shall be the person or persons surviving him in the following classes in which there is a survivor: • First, his surviving spouse; • then his surviving children in equal shares; provided that if a child dies before the Participant, the issue of such child shall take by the right of representation the share his parent would have received; • then the Participant's surviving parents in equal shares; • then the Participant's surviving brothers and sisters in equal shares; • or then, the ParticipanYs estate. SECTION 10.07--CONSTRUCTION. The validity of the Plan or any of its provisions is determined under and construed according to Federal law and, to the extent permissible, according to the laws of Minnesota. In case any provision of this Plan is held illegal or invalid for any reason, such determination shall not affect the remaining provisions of this Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had never been included. RESTATEMENT JANUARY 1, 2002 39 ARTICLE X(6-10089) -5 a3- 92� In the event of any conflict between the provisions of the Plan and the terms of any annuity contract issued hereunder, the provisions of the Plan control. SECTION 10.08--LEGAL ACTIONS. No person employed by the PHA or the City, no Participant, former Participant, or their Beneficiaries; nor any other person having or claiming to have an interestin the Plan is entitled to any notice of process. A final judgment entered in any such action or proceeding shall be binding and conclusive on all persons having or claiming to have an interest in the Plan. SECTION 10.09--WITHHOLDING. The Trustee shall withhold any tax which by any present or future law is required to be withheld, and which the Administrator notifies the Trustee in writing is to be so withheld, from any payment to any Participant or Beneficiary hereunder. SECTION 10.10--BACK PAY AWARDS. The provisions of this Section shall apply only to an Employee or former Employee who becomes entitled to back pay by an award or agreement of an Employer without regard to mitigation of damages. If a person to whom this Section applies was or would have become an Active Participant after such back pay award or agreement has been effected, then any 414(h) Contributions not previously made on his behalf but which, after application of the foregoing provisions of the Section, would have been made under the provisions of the 4"14(h) CONTRIBUTIONS SECTION of Article III and any Voluntary Contributions which the Participant had not previously made but which, after application of the foregoing provisions of this Section, he would have made under the provisions of the VOLUNTARY CONTRIBUTIONS BY PARTICIPANTS SECTION of Article III, shall be made out of the proceeds of such back pay award or agreement. In addition, if any such Employee or former Employee would have been eligible to participate in the allocation of Employer Contributions under the provisions of the EMPLOYER CONTRIBUTIONS SECTION of Article III for any prior Plan Year after such back pay award or agreement has been effected, his Employer shall make an Employer Contribution equal to the amount of the Employer Contribution which would have been allocated to such Participant under the provisions of the EMPLOYER CONTRIBUTIONS SECTION of Article III as in effect during each such Plan Year. The amounts of such additional contributions shall be credited to the Account of such Participant. Any additional contributions made by such Participant and by an Employer pursuant to this Section shall be made in accordance with, and subject to the limitation of the applicable provisions of Article III. SECTION 10.11--WORD USAGE. The masculine gender, where used in this Plan, shall include the feminine gender and the singular words, as used in this Plan, may include the plural, unless the context indicates otherwise. The words "in writing" and "written," where used in this Plan, shall include any other forms, such as voice response or other electronic system, as permitted by any governmental agency to which the Plan is subject. RESTATEMENT JANUARY "I, 2002 40 ARTICLE X(6-10059) -5 03 - 9zs SECTION 10.12--MILITARY SERVICE. Effective December 12, "1994, notwithstanding any provision of this Plan to the contrary, the Plan shall provide contributions, benefits, and service credit with respect to qualified military service in accordance wi2h Code Section 4"14(u). RES7ATEMENT JANUARY 1, 2002 41 ARTICLE X(6-10089) -5 03-9� By executing this Plan, the Administrative Committee acknowledges having counseled to the extent necessary with selected legal and tax advisors regarding the Plan's Iegal and tax implications. Executed this day of • .� 1 / • � �� : �� __� / � � r = �L,l � Title By: '� t � � B .��'� Defined Contribution Plan 8.0 Approved as to form: PUBLIC HOUSING AGENCY OF THE CITY OF SAINT PAUL By: /�G P C l�,'}' t V Q �� C ��/' Title -- G c�.�,. � , tle � �, ' � � -A� , � ��.� �� Title B .S Assistant Attorney RESTATEMENT JANUARY 1, 2002 42 PLAN EXECUTION (6-10089) -5