EX-99.B14(c)
PROTOTYPE MONEY PURCHASE PENSION PLAN ADOPTION AGREEMENT
The undersigned employer(s) - **SAVE UNDER CLIENT #.ADP IN INSTITUION
DIRECTORY**, hereinafter referred to as the "Employer", hereby adopts the
______________
Non-Standard Prototype Money Purchase Pension Plan and Trust.
1. EMPLOYER TAX IDENTIFICATION NUMBER ____________________.
2. The EFFECTIVE DATE of the Plan shall be _______________.
3. The EFFECTIVE DATE of this amendment __________________.
4. The ANNIVERSARY DATE of the Plan shall be _____________.
5. The ENTRY DATE(S) of the Plan:
5.1 ________________ shall be the first Entry Date.
5.2 ________________ shall be the second Entry Date.
5.3 Other:_______________________________________.
(The Entry Date(s) may not postpone entry into the Plan later than the
earlier of (a) the first day of the Plan Year beginning after the date on
which an Employee satisfies the requirements of Section 6 below, or (b) the
date 6 months after the date such requirements were satisfied).
6. ELIGIBILITY REQUIREMENTS - Each Employee will be eligible to participate in
this Plan in accordance with Section 5 of this Adoption Agreement, except
the following:
6.1 / / Employees who have not attained the age of ___ (cannot
exceed 21).
6.2 / / Employees who have not completed ___ Year(s) of Service
(cannot exceed 1 year unless the Plan provides a nonforfeitable
right to 100% of the Participant's account balance derived from
Employer contributions after not more than 2 Years of Service, in
which case, up to 2 years is permissible. If the Year(s) of
Service selected is, or includes, a fractional year, an Employee
will not be required to complete any specified Hours of Service
to receive credit for such fractional year.).
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6.3 / / Employees included in a unit of Employees covered by a
collective bargaining agreement between the Employer and Employee
Representatives, if retirement benefits were the subject of good
faith bargaining. For this purpose, the term "Employee
Representatives" does not include any organization more than half
of whose members are employees who are owners, officers, or
executives of the Employer.
6.4 / / Employees who are nonresident aliens and who receive no
earned income from the Employer which constitutes income from
sources within the United States.
6.5 / / a salaried employee.
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6.6 / / an hourly employee.
6.7 / / a commissioned salesperson.
6.8 / / Other:___________________________________________.
The term "Employee" shall include all Employees of this Employer and any
other employer aggregated with this Employer under Internal Revenue Code
Section 414(b), (c) or (m) and individuals required to be considered
Employees or any such Employer under Code Section 414(n) or under
regulations under Code Section 414(o).
7. COMPENSATION shall mean all of each Participant's:
7.1 / / W-2 earnings
7.2 / / Compensation (as that term is defined in Section 415(c)(3)
of the Code)
which is actually paid to the Participant during:
7.3 / / The Plan Year.
7.4 / / The taxable year ending with or within the Plan Year.
7.5 / / The Limitation Year ending with or within the Plan Year.
Compensation:
7.6 / / Shall include.
7.7 / / Shall not include.
Employer contributions made pursuant to a salary reduction agreement which
are not includable in the gross income of the employee under sections 125,
402(a)(8), 402(h) or 403(b) of the Code.
Compensation shall exclude:
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7.8 / / Basic Salary.
7.9 / / Basic Hourly.
7.10 / / Commissions.
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7.11 / / Bonuses.
7.12 / / Other: _______________________________________________.
The exclusions shall not apply if the Plan utilizes Permitted Disparity or
in determining minimum benefits and contributions.
8. NORMAL RETIREMENT AGE shall mean:
The later of age _____ (not to exceed age 65) or the _____ (not to exceed
5th) anniversary of the first day of the first Plan Year in which the
Participant commenced participation in the Plan.
9. VESTING
If a Participant terminates prior to Normal Retirement Age he shall receive
a percentage of his Accrued Benefit according to the vesting schedule
checked below:
9.1 / / One Hundred Percent schedule - 100% at all times.
9.2 / / Twenty Percent Schedule - 20% after the second Covered Year
of Service and 20% for each additional Covered Year of Service.
9.3 / / Variable Schedule - Based on Covered Years of Service after
Year:
1 _______ 3 _______ 5 _______ 7 _______ 100%
2 _______ 4 _______ 6 _______
This Option 9.3 shall not be less favorable than the vesting schedules
contained in Internal Revenue Code Sections 411(a)(2)(A) and (B).
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Note: Option 9.2 will automatically apply if and when this Plan shall
become top heavy provided that Option 9.1 has not been elected and Option
9.3 is not at least as favorable as Option 9.2.
9.4 / / Three-Twenty Schedule - 20% after 3 Covered Years of Service
and 20% for each additional Covered Year of Service.
9.5 / / Cliff Schedule - Full vesting after 5 Covered Years of
Service.
COVERED YEARS OF SERVICE for Vesting purposes shall exclude:
9.6 / / Years of Service before age 18.
9.7 / / Years of Service prior to the Effective Date of the Plan or
a predecessor plan.
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9.8 / / Years of Service in which the Employee declined to make
mandatory contributions to the Plan.
If the vesting schedule under the Plan(s) shifts in or out of the above
vesting schedule for any Plan Year because of the Plan's top heavy status,
such shift is an amendment to the vesting schedule and the election in
Section 1.4 of the Plan applies.
Notwithstanding the above, the Accrued Benefit shall become fully vested at
Normal Retirement Age.
10. CONTRIBUTIONS:
Employer contributions will be calculated based on compensation of those
Participants who are New or Active Participants who have completed a Year
of Service. In the event that the Plan would fail the nondiscrimination
tests under Code Sections 401(a)(26) or 410(b) if the tests were based on
only these Participants, Employees credited with more than 500 Hours of
Service but not a Year of Service shall be considered to be Plan
Participants.
10.1 / / The Employer hereby agrees to contribute to the Plan an
amount equal to (not to exceed 25%) of Compensation.
10.2 / / The Employer hereby agrees to contribute an amount equal to
_____ % (Base Contribution Percentage, not less than 3%) of each
Participant's Compensation up to the Integration Level plus
_____ % (not less than 3% and not to exceed the Base
Contribution Percentage by more than the lesser of: (1) the Base
Contribution Percentage, or (2) the Money Purchase Maximum
Disparity Rate) of such Participant's Excess Compensation as
defined in Section 12.
The above excess percentage rate shall not exceed the rates applicable
to the Employer for old age insurance under the Social Security Act
for such Plan Year of Compensation. Both the taxable wage base and
old age insurance tax rate are those in effect on the first day of the
Plan Year. Such amount will be allocated directly to such
Participant's Account in the same manner as calculating the
contribution and no allocation shall be made under Section 11 of this
Adoption Agreement.
10.3 / / The Employer shall not make a contribution on behalf of a
Participant who terminates employment with the Employer by reason
other than death, disability or retirement and who is not
employed with the Employer on the Anniversary Date.
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10.4 / / Forfeitures of Employer Contributions shall be applied to
reduce the Employer's Contribution.
10.5 / / Forfeitures of Employer Contributions shall be added to the
Employer's Contribution in the year of forfeiture and allocated
therewith.
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11. ALLOCATION OF CONTRIBUTIONS:
The Employer contribution to the Plan will be allocated among Participant
Accounts:
11.1 / / Allocation based on compensation
In the ratio which each Participant's Compensation bears to the
Compensation paid to all Participants.
11.2 / / Allocation under permitted disparity rules
Employer contributions for the Plan Year plus any forfeitures will be
allocated to Participants' accounts as follows:
If the Plan is Top Heavy for the Plan Year (as defined in Section 8 of
the Plan document), begin at step (1), otherwise begin at step (3).
(1) Contributions and forfeitures will be allocated to each
Participant's account in the ratio that each Participant's total
Compensation bears to all Participant's total Compensation, but
not in excess of 3% of each Participant's Compensation.
(2) Any contributions and forfeitures remaining after the allocation
in (1) above will be allocated to each Participant's account in
the ratio that each Participant's Compensation for the Plan Year
in excess of the Integration level bears to the Excess
Compensation of all Participants, but not in excess of 3%.
(3) Any contributions and forfeitures (remaining after the allocation
in (2) above in the case of a Top Heavy Plan) will be allocated
to each Participant's account in the ratio that the sum of each
Participant's total Compensation and Compensation in excess of
the Integration Level bears to the sum of all Participants' total
Compensation and Compensation in excess of the Integration Level,
but not in excess of the Profit Sharing Maximum Disparity Rate.
(4) Any remaining Employer contributions or forfeitures will be
allocated to each Participant's account in the ratio that each
Participant's total Compensation for the Plan Year bears to all
Participant's total Compensation for that year.
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12. EXCESS COMPENSATION SHALL MEAN COMPENSATION IN EXCESS:
12.1 / / of the Taxable Wage Base in effect as of the beginning of
the Plan Year.
12.2 / / of $ _____ (a dollar amount less than the Taxable Wage
Base).
12.3 / / of _____ % of the Taxable Wage Base (not to exceed 100%).
13. INDIVIDUAL INVESTMENT ACCOUNTS:
13.1 / / Will not be used.
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13.2 / / Will be used as follows:
Each Participant will have a separate Individual Investment Account
which will contain the amount allocated to the Participant Account.
Each Participant will have the power to direct the investment with
respect to his Individual Investment Account subject to such rules as
the Administrator and the Trustee may deem necessary. Gains and losses
of the Account shall accrue to such Account only.
14. LIMITATION YEAR shall mean each 12 consecutive month period ending on
___________________________.
NOTE: A written resolution must be adopted by the Employer if the
Limitation Year is other than the calendar year.
15. LIMITATION IN BENEFITS - If the Employer maintains or has ever maintained,
in addition to this Plan, one or more plans which are either qualified
defined benefit plans or qualified defined contribution plans other than
paired plan:
Plan #01 - Adoption Agreement 000
Xxxx #00 - Adoption Agreements 001, 002, 005, 009
in which any Participant in this Plan is (or was) a participant or could
possibly become a participant, the Employer must complete this Section.
The Employer must also complete this Section if it maintains a welfare
benefit fund, as defined in Code Section 419(e), or an individual medical
account, as defined in Code Section 415(l)(2) under which amounts are
treated as annual additions with respect to any Participant in this Plan.
If any Participant is covered under another qualified defined contribution
plan maintained by the Employer, other than a master or prototype plan:
15.1 / / The provisions of Section 5.5 (B) of the Plan will apply as
if the other plan were a master or prototype plan.
15.2 / / The total Annual Additions will be limited to the maximum
permissible amount and excess amounts will be reduced in a manner
that precludes Employer discretion, as follows:
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15.3 / / If the Participant is or has ever been a Participant in a
defined benefit plan maintained by the Employer, the benefits
under the plans will be limited as follows (this method must
preclude Employer discretion):
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16. MINIMUM CONTRIBUTION FOR TOP HEAVY PLAN - If the Employer maintains one or
more defined benefit plans in which a Participant participates in addition
to this Plan and does not maintain any other defined contribution plans in
which a Participant participates, the minimum benefit requirement
applicable to Top Heavy Plans shall be met under this Plan.
If the minimum benefit requirement is met under this Plan, the additional
minimum benefit:
16.1 / / Shall be provided.
16.2 / / Shall not be provided.
17. YEAR OF SERVICE shall mean:
17.1 / / 1000 Hours of Service.
17.2 / / _____ Hours of Service (less than 1000 Hours of Service).
18. PREDECESSOR EMPLOYER - Service with the following Predecessor Employer(s):
shall be counted for purposes of:
18.1 / / eligibility Years of Service.
18.2 / / vesting (Covered Years of Service).
19. ADMINISTRATOR shall mean:
19.1 / / The Employer.
19.2 / / Individuals specified in item 23 below.
20. OTHER BENEFITS
20.1 / / Early Retirement Benefit (fully vested): Subject to the
Joint and Survivor Annuity requirements, any Participant may
retire and receive the
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entire amount in his Participant Account provided he has attained
age ____ and has at least ____________ Covered Years of Service.
21. ACTUARIAL EQUIVALENT - For purposes of establishing present value to
compute the top heavy ratio, benefit payments shall be discounted only for
mortality and interest based on the following:
21.1 / / Pre-Retirement Interest Rate ___ %.
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21.2 / / Post-Retirement Mortality Table _______ with _______ %
interest.
22. PARTICIPATING AFFILIATES - Each Affiliate (i.e., each member of a
controlled group of corporations, commonly controlled group of trades or
businesses, or an affiliated service group within the meaning of section
414 of the Code) must adopt this Plan as a Participating Affiliate. [Attach
additional signature pages if there is more than one Participating
Affiliate.
Participating Affiliate Name ____________________ Employer I.D.__________
Address__________________________________________ Taxable Year___________
By______________________________________ Title____________ Date__________
23. ADMINISTRATOR - If Option 19.2 is elected the following named individuals
shall serve as Plan Administrator.
Signature by the Administrator (if other than the Employer) is in
acknowledgment of acceptance of appointment as Administrator.
Administrator(s) Name(s) Signature(s):
24. Appointment of Trustee - Signature by the Trustee is in acknowledgment of
acceptance of appointment.
Trustee Name(s): Signature(s):
25. ADOPTION AGREEMENT USAGE
This Adoption Agreement is only to be used with basic Defined Contribution
Plan document 02.
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The Adopting Employer may not rely on the opinion letter issued by the
National Office of the Internal Revenue Service as evidence that this Plan
is qualified under Section 401 of the Internal Revenue Code. In order to
obtain reliance with respect to qualification, application for a
determination letter should be made to the appropriate Key District
Director of Internal Revenue.
Failure of the Employer to properly complete this Adoption Agreement may
result in the disqualification of this Plan.
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26. SPONSORING ORGANIZATION - The Sponsoring organization or its authorized
representative
identified below will inform the adopting employer of any amendments made
to the Plan or of the discontinuance or abandonment of the Plan.
The organization sponsoring this Plan is
.
The authorized representative of the sponsoring organization is
.
The Employer represents that the legal and tax aspects of this Plan and Trust
have been duly considered and passed upon by its attorney and/or tax advisor who
has determined that it is suitable and has been properly completed and adopted.
ADOPTION FOR THE EMPLOYER
Signature Title
Date
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