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HomeMy WebLinkAboutres1983-018Phone 676 -6690 676 -6717 384 -1403 SCAN 644 -6717 COUNTY COUNCIL 311 Grand Avenue Bellingham, Washington 98225 MEMO TO: All Departments FROM: William P. Roehl, Vice- Chairman v), DATE: May 9, 1983 SUBJECT: Deferred Compensation Plan Attached please find a copy of Resolution No. 83 -18 a'Deferred Compensation Plan for Whatcom County employees. Additional information regarding the plan will be forthcoming from Harold Raymond, Personnel Director. ' 4 Shirley Van Zanten Donald G. Hansey Craig W. Cole C. J. Johnson R. W. "Bob" Muenscher J. V. "Jim" Hawley, Jr. William P. Roehl 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DATE April 31, ?.Oe INTRODUCED BY :Jansey PROPOSED BY County Executive RESOLUTION NO. 83-18 A RESOLUTION ESTABLISHING A DEFERRED COMPENSATION PLAN FOR WHATCOM COUNTY EMPLOYEES WHEREAS, the WHATCOM COUNTY COUNCIL desires to provide certain benefits for its employees or independent contractors as part of their compensation; and, WHEREAS, THE Whatcom County Personnel Department and an ad hoc committee of employees has reviewed the plans of several vendors and recommends the acceptance of Hartford Variable Annuity Life Insurance Company as the plan which seems most suited for Whatcom County employees; NOW, THEREFORE, BE IT RESOLVED, That the Council does hereby authorize and approve entering into a Deferred Compensation Plan with Hartford Variable Annuity Life Insurance Company to provide this benefit for employees or independent contractors eligible to participate in the Plan under the terms set up by the Plan Document. 1.That in order to accumulate the appropriate funds to meet Whatc County's obligation to pay benefits to Participants in accordance with the Deferred Compensation Plan, the Council does hereby authorize and approve the purchase of insurance and /or annuity contracts as issued by the Hartford Variable Annuitv Life Insurance Company in such amounts as may be appropriate to pro- vide plan benefits. 2.That it is the intention of the Council that the payments made Oy I independent contractors concerned. 2 3. That Whatcom County will be the owner, beneficiary, and have 3 all the rights under such insurance or annuity contracts and such 4 contracts shall be held as a general, unpledged, and unrestricted 5 asset of Whatcom County. 6 4. That the Council hereby accepts and approves the Deferred 7 Compensation Plan attached as Appendix I to this Resolution as the 8 Deferred Compensation Plan for Whatcom County 9 PASSED THIS _ 5th day of May _1983, 10 WHATCOM COUNTY COUNCIL 11 WHATCOM COUNTY, WASHINGTON 12 ATTEST: Clerk pf the Council 16 17 18 19 20 21 22 23 24 25 26 27 28 William P.. Roehl Vice- Chairman APPENDIX I, DEFERRED COMPENSATION PLAN DEFERRED COMPENSATION PLAN ARTICLE I General 1.01 Name. The name of this Plan shall be the Whatcom County Deferred Compensation Plan, which is hereby established and adopted. It may be, and sometimes is, referred to as the "Plan" or the "Deferred Compensation Plan ". 1.02 Purpose. The purpose of this Plan is to extend to Employees of the Employer certain benefits which ordinarily accrue from par- ticipation in a Deferred Compensation Plan. The Employer does not and cannot represent or guarantee that any particular federal or state income, payroll, or other tax consequence will occur by reason of an Employee's participation in this Plan. The Employee wishing to participate in the Plan ,should consult with his own attorney or other representative regarding all tax or other con- sequences of participation in this Plan. ARTICLE II Definitions 2.01 "Administrator" means the Employer or its duly authorized designee for that purpose who shall govern the operation of the Plan. 2.02 "Advisory Committee" shall mean a committee consisting of the Whatcom County Auditor, the County Personnel Director and one other member at large appointed by the County Executive. The at large member's term shall be for four years from the date of appointment.The committee shall pick its own Chairperson. The committee shall administer the Plan according to the guidelines outlined in the Plan. 2.03 "Annuity Contracts" referred to in this Plan means any annuity contracts qualified for sale in Washington State and approved by Whatcom County. Notwithstanding the above definition, annuity contracts actually used in conjunction with the plan can be altered, changed, or substituted for, from time to time by action of the Employer and such altered, amended, changed, or substituted contracts or contract thereafter may be used in the Plan. 2.04 "Beneficiary" means any person designated by the Participant to receive a pension, annuity, death benefit, or other benefit under the provisions of this Deferred Compensation Plan. 2.05 "County" means Whatcom County. 2.06 "Compensation" means all wages or salaries to be paid to an employee for services rendered, without deduction for any portion thereof deferred under the provisions of this Plan or for any amounts contributed to a tax deferred annuity plan pursuant to I.R.C. Section 403 (b). 2.07 "Deferred Compensation" means that portion of an Employee's Compensation which said Employee has elected to defer in accordance with the provisions of this Deferred Compensation Plan. 2.08 "Employee" means any full -time permanent employee, permanent part -time employee, or any elected official of the Employer. 2.09 "Employer" means Whatcom County government. 2.10 " Normal Retirement Date" means the last day of the month in which a Participant retires pursuant to the normal retirement practices of the Employer. (Such age may be no later than age 701 and no earlier than the earliest age at which a Participant has the right to retire under the Employer's basic pension plan without consent of the Employer, and to receive immediate retire- ment benefits.) 2.11 "Participant" means any employee who voluntarily elects to par- ticipate in this Deferred Compensation Plan by filing a Participation Agreement with the Employer. 2.12 "Participation Account" means the book account to which there is credited the Participant's deferred compensation, together with any interest, dividends, gains, losses, or the like thereon. 2.13 "Participation Agreement" means the contract by which the Participant and the Employer agree that a portion of the Employee's compensation will be deferred pursuant to the Plan. 2.14 "Plan Year" means the calendar year in which the Plan becomes effective, and each succeeding year during the existence of this Plan. 2 2.15. "Termination of Empl e oymnt" means in the case of an Employee, separation from service. 2.16.11Unforseeable Emergency" means severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant or of a dependent (as defined in Internal Revenue Code Section 152(a)) of the Participant, loss of the Participant's property due to casualty or other similar extraordinary and unforeseeable circumstances arising as a .result of events beyond the control of the Participant. Unforseeable Emergencies do not include any hardships which have not occurred or which are or may be relieved (A) by reimbursement for compen- sation by insurance or otherwise; (B) by liquidation of the Participant's assets, to the extent the liquidation of such assets would not itself cause severe financial hardship; or (C) by cessa- tion of deferrals under the Plan. 2.17. "Eligible_ State Plan" has the meaning given it by the Internal Revenue Code Section 457 and the regula- tions thereunder. 2.18. "Includible_ Compensation" means the remuneration for services performed For the Employer which is currently includible in gross i ncome.. ARTICLE III Operation _of_Plan 3.01 Participation_ Any Employee may elect to become a Participant of the Plan and to defer payment of part of his or her Compensation by executing a written Participation Agreement and filing it in the manner set forth in this Article. The dollar amount deferred must be at least thirty dollars ($30.00) per month or such larger amount as may be designated by the Employer from time to time. a. The maximum amount that may be defered under the Plan for the taxable year of a Participant shall not exceed the lesser of (a) $7,500, or (b) 33 -1/3 percent of the participant's includible com- pensation (typically twenty -five percent (25 %) of the Participant's gross compensaLion). b. Provided, however, that one or more of a Participant's last three full taxable years ending prior to a Participant's Normal Retirement Date as defined in 2.11, the maximum amount that may be deferred under the Plan shall be the lesser of (1) $15,000 or (2) (2) the sum of (i) the limitation in (a.) above for the taxable year; and (ii) the limitation under (a) above for any prior taxable year or years which began after December 31, 1978, and in which the Participant was eligible to participate in the Plan less the amount of compensation deferred under the Plan for any such taxable year or years. A Participant may only utilize this sub- section (b) once, whether under this Plan or any other eligible State Deferred Compensation Plan. 3 c. For any individuals who are Participants in more than one plan, the maximum amount of compensation deferred for all plans during any taxable year shall not exceed $7,500 as modified by the adjustment provided under Subsection (b) of this section. d. For any individuals who are Participants in an IRC Section 403 (b) Plan, the amounts excluded in any taxable year under such plans shall be treated as amounts deferred for purposes of Subsections (a),(b), and (c) of this section and shall be treated as amounts excluded under IRC Section 403 (b)(2)(A)(ii). e. In addition to'a Participant's election to participate pursuant to the preceding paragraph, a Participant may transfer to this Plan amounts previously deferred under another Eligible State Deferred Compensation Plan maintained by an Employer located in the same state as the Employer maintaining this Plan. Such amounts shall be treated as if they had originally been deferred under this Plan and all applicable provisions of this Plan shall apply. 3.02 Deferral of Compensation: Employer and Participant mutually acknowledge that the Compensation of each Participant is as established by contract or annual salary resolutions or ordinances of the Employer and that said Compensation includes the dollar amount of funds deferred under the terms of this Plan, or set aside under any 403(b) tax deffered annuity plan. Participant Compen- sation shall be paid monthly or as otherwise provided, except that during each employment year in which the Participant maintains an account in the Plan, that portion of said Compensation which is specified by the Participant in the Participation Agreement shall be deferred and paid in accordance with. the provisions of this Plan. 3.03 Investment Accounts: The Employer shall cause to be established for each participant an Investment Account to provide a convenient method of measuring the Employer obligations to the Participant under the Plan. The Employer shall cause to have cre- dited to each account amounts equal to the compensation deferred by the participant under the Plan. The assets of the account shall be 'invested in Annuity contracts or other investments as the law may allow. The Employee's statement of investment preference shall only require the Employer to use such preference as an index for determining the benefits to be paid pursuant to Article 4. The Employer shall be under no obligation to invest the deferred amount in the manner requested. 51 3.04. Employer Res_ onsibilit. The Employer may, but is not required to, invest Deferred Compensation held pursuant to agreements between Participants and the.Employer, in accordance with the requests made by each Participant at the time of enrollment or change in enrollment. The.Employer retains the right to approve or disapprove requests for a specific investment pre- ference. Any investment action by the Employer, or approving of any investment preference, shall not be considered to be an endor- sement or guarantee of any investment preference, nor shall it be considered to attest to the financial soundness or the suitability of any investment preference for the purpose of meeting future obligations as provided in Article 4 of this Plan. Further, the Employer shall not be held responsible for any investment results, either gains or losses, from any investment preference used to meet future obligations under the Plan. 3.05. Ownership of Deferred Amounts: The Employer shall establish and maintain a fund, hereinafter called the "Investment Fund ", to pro- vide a convenient method of setting aside sufficient of its assets to meet its future obligations under this Plan. The Employer shall at all times be the legal and beneficial owner of all assets in the Investment Fund and neither the existence of the Plan nor of the Investment Fund shall be deemed to create a trust or limit use by the Employer of the funds therein for general Employer purposes. The obligations of the Employer to make payments pursuant to this Plan is contractual only, and no Participant or Beneficiary shall have a preferred claim or lien on or to the assets of this Investment Fund, but shall have only the right to receive the benefits payable under the Plan. Interests of a Participant who changes employment may, under certain prescribed conditions, be transferred to the eligible deferred compensation plan of a new employer. ARTICLE IV Administration and Accounting 4.01 Administration ` y_Adviso� Committee: This Plan shall be admi- nistered by an Advisory Committee which shall prescribe such forms and adopt rules and regulations as are necesssary to carry out the purposes of the Plan. The Advisory Committee may employ investment counsel to provide advice concerning categories of investment, investment guidelines and investment policy, provided, however, that the advice or recommendations of any such investment counsel shall not be binding on the Advisory Committee which shall make the final determination concerning investment categories, investment guideli- nes and policies. 4.02. Enrollment Periods: a. When the Plan is first made available, an Employee or periphiral employee shall have sixty (60) days from the date par- ticipation in the Plan is offered to them to effect an election to participate. Such election shall be effective only for pay periods commencing in the month following the month in which a Participant makes the election to participate in the Plan. b. Any person who becomes an Employee after this Plan is first made available shall have the option, within sixty (60) days after becoming an employee, to effect an initial election to participate in the Plan. Such election shall only be effective for pay periods com- mencing in the month following the month in which an employee makes the election to participate in the Plan. 5 c. Any Employee who does not file an initial election, pursuant to (a) or (b) above, shall have the right to elect participation during enrollment periods for the Plan which will be held during the months of March and June and September and December. Such election will be for pay periods in the first month after the date on which his or her Participation Agreement is filed with the Employer. 4.03. Participation_ Agreement: The Employer shall establish a form of Participation Agreement and other enrollment forms which shall contain, among other provisions, the following: (a) A provision whereby the Participant specifies the portion of his or her compensation which is to be deferred. (b) A provision whereby the Participant shall indicate his or her investment preference. (c) A provision whereby the Participant shall designate a Beneficiary or Beneficiaries, including one or more contingent Beneficiaries, to receive any benefits which may be payable under this Plan on death of the Participant. (d) An acknowledgement by the Participant that his or her salary., wage, or other compensation is as set forth in any salary ordinance, resolution, classification plan, or collective bargaining agreement or otherwise, without deductions for amounts deferred under the provisions of this Plan. (e) A provision whereby the Participant together with his or her heirs, successors and assigns holds harmless the Employer and the Deferred Compensation Advisory Committee from any liability hereunder for all acts performed in good faith, including acts relating to the investment of deferred amounts and /or the Employee's investment preference hereunder. 4.04. Amendment of Participation Agreement: The Participant may revoke his or her election to participate and may change the amount of Compensation to be deferred, or their investment preference, by signing and filing with the Employer a written revocation or amend- ment, on a form approved by the Plan Administrator. A Participant's revocation of their election to participate may be made at any time. A Participant's amendment to change the amount of Compensation to be deferred, or their investment preference, can be made only during the December and June enrollment periods. Any such revocation or amendment shall be effective with the first pay period of the subsquent month. A Participant may amend their statement of invest- ment preference by filing with the Employer a signed amendment on a form approved by the Plan Administrator. If a Participant requests that amounts then held in a Participant's Account also be invested in accordance with an amended investment preference, the Employer may, if it deems it in the best interest of the Participant to do so, approve such change. Any such changes shall be governed by the provi- sions of Section 3.03 hereof. All contracts and other evidence of the investment of assets under this Plan shall be registered in the name of the Employer which shall be the owner- beneficiary thereof. 0 4.05 Participation Accounts: A separate Participation Account shall be maintained for each Participant. Each Participation Account shall reflect the monies deferred, the invest- ment of the monies, and all consequences of the investment. For convenience, and to facilitate an orderly administration of the Plan, individual Participation Accounts for all Participants will be maintained by the Employer showing the Participant's name with all applicable debit and credit balances. The Participant's deferred account shall be credited each pay period with the amount deferred from the preceding pay period. A written report of the status of the Participation Account shall be furnished to Participants at least annually. All interest, dividends, charges for premiums, capital gains, or market-changes applicable to each Participation Account shall be credited or debited to the account as they occur. Credits to the Participant's Account shall be subject to the Participant's then effective investment preference. All reports to the participant shall be based on the net fair market value of the assets as of the reporting date as if the deferred amount had been invested according to the investment preference. 4.06 Administrative Costs_ The Employer shall determine, in a manner deemed fair and equitable, the administrative costs associated with the withholding of Deferred Compensation amounts pursuant to this Plan or in making investments or otherwise administering or imple- menting this Plan. The Employer may withhold or collect, or have withheld or collected, such costs, in such manner as the Employer deems equitable either (1) from the compensation deferred pursuant to the Plan, the income produced from the compensation deferred pur- suant to the Plan, the income produced from any investment, whether or not augmented; or (2) from the organization receiving such investment where required by law to collect therefrom or, if not so required, where mutually satisfactory to such organization and the Administrator. The Administrator may remit or direct the remission of appropriate amounts so withheld or collected to the Employer. Quarterly statements of accounts distributed to Participants shall specify any such amounts deducted by the Employer, or by any organi- zation contracting with the employer in connection with this Plan, from Deferred Compensation of such participants or income derived therefrom. 4.07 ETRIgy r_ P_a_rticipa_tionn Notwithstanding any other provisions of the Plan,-the Employer may make deposits into the Plan as compen- sation for services rendered by a participating Employee during an employment period in which the compensation would be earned. Also the Employer may make other additional deposits to the Plan as he may deem advisable subject, however, to the limitations on deferrals as stated in Section 3.01 hereof. 7 ARTICLE _V Benefits 5.01 Benefits Generally: The Participant is entitled to have paid to him the benefits created by his participating in this Plan, in accordance with the provisions of this Article. The benefits payable to the Participant will be the equivalent of the total benefits that would have been created had the deferred amounts been invested in the Annuity Contract(s) as specified by the Participant from time to time taking into consideration losses and gains where applicable and any deductions authorized in Section 4.06 above. Amounts paid to a Participant shall be reported on appropriate tax reporting forms to a Participant as wages subject to withholding for federal income taxes. In the event of death of a Participant prior to the commencement of benefits as called for under the Plan, the named Beneficiary of Participant's Account shall have the right to designate that payments to such Beneficiary shall be in accordance with one of the available options provided under the Plan. Such selection must be made within thirty (30) days prior to the time any payments commence. a. Retirement: Upon the Participant's reaching the Normal Retirement Date or the Deferred Retirement Date, he or she may receive the benefits provided under this Plan. Such benefits shall be paid in accordance with the Payment Options 1 through 7 as selected by the Participant pursuant to Subsection (f) of this sesction. Any credits remaining in the deferred account of a Participant receiving benefits under this paragraph who dies, shall be paid in accordance with Subsection( c) of this section. b. Termination of_Emplgment: If the Participant incurs a Termination of Employment (other than for retirement), benefits shall be paid in accordance with Payment Options 1 through 7 as selected by the Participant pursuant to Subsection (f) of this section. However, a former Participant may elect to have pre- viously deferred amounts transferred to another Eligible State Deferred Compensation Plan provided that (1) the Employer spon- soring the other plan is located within the same state as the Employer maintaining this plan; (2) such other plan provides for accepting such amounts; and (3) the former Participant has become a participant in the other Eligible State Deferred Compensation Plan. A transfer of previously deferred amounts will automatically be made at the time benefits would have commenced under Section 5.01(f)just as if no transfer were being made, if a Participant incurs a Termination of Employment in order to accept employment with another employer maintaining an Eligible State Deferred Compensation Plan and the conditions of (1),(2), and (3) above are met. LV c. Death: Benefits otherwise payable under this Plan will be paid to the Participant's Beneficiary as provided in Payment Options 1 through 7 below, whichever is applicable. Provided, however, that in the case of benefits payable to a Beneficiary, other than the spouse of the Participant, under Option (2) or (4) or 5.01(f) for a period which exceeds fifteen years, the entire amount payable shall be paid out over fifteen years. (1) Before benefits are paid for retirement, disability or_ termination of service. If the Participant dies while.employed with the Employer and before the payment of retirement or Termination of Service benefits is made to them under this Plan, the benefits otherwise payable under this Plan shall be paid to the designated Beneficiary pursuant to Payment Options 1 through 7 as selected by the Participant pursuant to Subsection (f) of this section. (2 ) After benefits are be.ing_paid_for retirement or ter - mination_of service. If the Participant dies while benefits are being paid to them under this Plan pursuant to Payment Option 2,4, or 6 and before such benefits have been exhausted, then the remaining benefits payable shall be paid to the Participant's designated Beneficiary in accordance with Subsection (3) of this section. (3 ) Designated Benef_ic_ia_ry_ The Participant has the right to name and file with the Employer, a written Beneficiary or Change of Beneficiary form, designating the person or persons who shall receive the bene- fits payable under this Plan in the event of the Participant's death. The form for this purpose shall be provided by the Employer. It is not binding on the Employer until it is signed, filed with the Employer by the Participant, and accepted by the Employer. If the Participant dies without having a Beneficiary form on file, the Payments shall be made to the properly appointed fiduciary of the Participant's probate estate. However, if a fiduciary has not been appointed and qualified within one hundred twenty (120) days after the death, the payment may be made, first, to a surviving spouse, second, to a surviving child or children, and third, to a surviving parent or parents. The Participant accepts and acknowledges that he has the burden for executing and filing, with the Employer, a proper Beneficiary designation form. d. Commencement of payment : The payment of benefits to the Participant shall begin on the first day of the month next following forty -five (45) days after the occurrence of the event that gives rise to the beginning of the payment of benefits, except that payment of benefits to an independent contractor on account of Termination of Employment, for other than retire- ment, shall not commence until the first day of the month next following a twelve -month period after Termination of Employment and then only if the Participant has not performed services for the Employer as an Employee or Independent Contractor within such period. e. Short term or lump -sum _settlement: Notwithstanding anything in this Article to the contrary, except Section 5.01(e), if at any time the total amounts held under this Plan in the account main- tained for the Participant or his Beneficiary, total to a credit of $5,000 or less and for any reason the Participant has incurred a termination of employment, the Employer is authorized to deviate from the restrictions imposed by the paragraphs in this Article and effect a lump -sum settlement. f. Options: The following options are available for selection by Participant. However, any option selected must be such that bene- fits payable to a Participant will exceed one -half of the maximum that could have been payable to the Participant if no provisions were made for payment to a Beneficiary. If, at the time of the election to participate in the Plan, the Participant fails to select a payment option for any event which causes payment of benefits to begin, the Participant shall be deemed to have elected to have the benefits payable upon occurrence of such event as if he had elected payments for a specified period of ten (10) years as provided for in Option 2. (1) Payment Options: As provided in Subsections (a) through (d) of this section, Participant may select: Option 1. Lump -sum payment_ The total benefits payable in one cash payment. Option 2. Payments for a Specified Period. Amounts payable in equal installments over a period of three (3) to thirty (30) years. Option 3. Life Annuity. An annuity payable during the lifetime of the Participant or their Beneficiary if this option is selected over subsection (d) of this section. option 4. Life _Annui y With_ Period Certain Guaranteed. An annuity payable during the lifetime of the Participant, or their Beneficiary, kf this option is selected under Subsection (d) of this section, with the guarantee that if at his death payments have not been made for the guaranteed period as elected, payments will continue to the Beneficiary,. The guaranteed period to be elected must be either ten (10), fif- teen (15), or twenty (20) years. Option 5_ Joint and Survivor_ Annuity. An annuity payment during the lifetime of the Participant and a secondary payee named by the Participant. Option 6. Designated Amount_. A method of account liquidation of a specific dollar amount monthly until account funds are exhausted. 10 Option 7. Freeze. Notwithstanding any provisions of this Article, a terminating Employee may elect to leave the funds, assets, and accumulations in their Participation Account until such time as they would otherwise receive the benefits in accordance with their stated preference as provided in Article 4 of this Plan. (2) Method of Payment Options. If the Participant has elected a payment option requiring installment payments, the Participant may also elect to have such payment made either monthly, quarterly, semi - annually or annually. 5.02 Financial_ Hardship. Notwithstanding any other provision herein, a Participant may apply to the Advisory Committee to withdraw, in whole or in part, from the Plan prior to retirement or any other termination of his employment with the Employer because of financial hardship. Benefits to be paid upon any withdrawal shall be limited strictly to that amount necessary to meet the emergency situation constituting financial hardship. Any remaining benefits shall be paid upon retirement, termination of employment, disability, or death in accordance with Section 5.01, above. Withdrawal for financial hardship shall be limited to real emergencies beyond the control of the Participant which would cause him great hardship if early withdrawal were not permitted. Financial hardship shall include but not be limited to the following: personal bankruptcy; unexpected and unreimbursed major expenses resulting from illness or accident of the Participant or any dependent thereof; major property loss or any other type of unexpected and unreimbursed personal expense of a major nature that would not normally be budgetable. Foreseeable personal expen- ditures normally budgetable, such as a down payment for a home, the purchase of an automobile, college or other schooling expen- ses, etc., will not constitute a financial hardship. The decision of the Advisory Committee concerning financial hardship shall be final as to all Participants. ARTICLE VI a Miscellaneous 6.01 Leave of Absence: If a Participant is on an approved leave of absence from the Employer with compensation, participation in this Plan will continue. If a Participant is on an approved leave of absence without compensation and such leave of absence continues for more than six (6) months, said Participants will be deemed to have terminated participation in the Plan as of the end of such six (6) month period. Such termination of participation will not cause distribution of benefits. Upon return from such leave of absence, the Participant's full compensation on a non - deferred basis will be thereupon restored. Such employee may again become a Participant by meeting the requirements for eligibility as herein provided. 11 6.02 Retirement System Integration: Benefits payable by, and deduction for Employee contributions to any retirement system of the Employer including Social Security, shall be computed without reference to amounts deferred pursuant to this Deferred Compensation Plan and shall instead be based upon the gross compensation the Participant would receive if he had not elected to participate in this Plan and to defer compensation. 6.03 Amendment: The Plan may be modified, amended or terminated in whole or in part (including retroactive amendments ) by the Advisory Committee at any time. No amendment or termination of the Plan shall reduce or impair the rights of any Participant or his Beneficiary which have already accrued. Upon termination of the Plan, the Employer shall distribute all amounts credited to each Participation Account in accordance with the Participant's payment option selected pursuant to Section 5.01. All Participants shall be treated in the same manner. 6.04. Creditors_ A Participant may not assign, transfer, sell, hypothecate, or otherwise dispose of any or all of their investment account or any right which they may have under the Plan, and any attempt to do so shall be void. 6.05. Employment: Participation in the Plan shall not be construed as giving any Participant any right to continue their employment with the Employer. 6.06 Successors and Assigns: The Plan shall be binding upon and shall insure to the benefit of the Employer, its successors and assignes, all participants and Beneficiaries and their heirs and legal representative. 6.07 Written_ Notice: Any notice or other communication required or permitted under the _ Plan shall be in writing, and if directed to the Employer shall be sent to the designated office of the Employer, and, if directed to Participant or to a Beneficiary, shall be sent to such Participant or Beneficiary at either their last known address as it appears on the Employer's record, or to their work site, at the Employer's option. 6.08. Facility of Payment: If any Participant terminates their employment with an unpaid debt owing to the Employer, and neglects or refuses to liquidate the debt by any other means when due and upon demand, the Employer shall be entitled to collect the amounts due from the deferred compensation owed to the Participant under the Plan. 6.09. Total Agreement: This Plan and the Participation Agreement, and any subsequently adopted amendment thereof, shall constitute the total agreement or contract between the Employer and the Participant regarding the Plan. No oral statement regarding the Plan may be relied upon by the Participant. 1.2 6.10. Gender: As used herein, the masculine shall include the neuter and the feminine where appropriate. 6.11. Control_ing,Law: This Plan is created and shall be interpreted under the laws of the State of Washington as the same shall be at the time any dispute or issue is raised. IN WITNESS WHEREOF, the Employer has adopted this Plan document this 6th day of '_May_— _____ —_, 1983. A,TTF.5T Clerk of the Council APRPROVED AS TO FORM ng Attorney 13 WHATCOM COUNTY, WASHINGTON John uws County Executive