Los Angeles County Municipal Code Ch. 5.23 The County of Los Angeles Deferred Earnings Plan

The County of Los Angeles, pursuant to the order of its board of supervisors, adopts a profit sharing plan known as "The County of Los Angeles Deferred Earnings Plan," effective as of December 31, 1985. This amendment and restatement of the Plan shall constitute an amendment, restatement and continuation of the Plan to be effective as of January 1, 1997 unless a provision expressly states otherwise. Certain provisions of this amendment and restatement, however, are effective before or after the effective date. Provisions which are effective prior to the Effective Date shall be deemed to amend the corresponding provisions of the Plan as amended and in effect before this restatement. Events occurring before the

applicable effective date of any provisions of this restatement shall be governed by the applicable provisions of the Plan in effect on the date of the event. Effective May 30, 2008, this Plan is merged into the County of Los Angeles Savings Plan, established and maintained under Chapter 5.26 of the Los Angeles County Code; accordingly, as of that date, the provisions of this Chapter shall be inoperative and the rights of Participants under this Plan shall be governed by the terms of the Savings Plan as set forth in Chapter 5.26. The purpose of the plan is to permit employees to defer a portion of their compensation and provide for retirement, disability and death benefits. The plan is a retirement benefit enhancement provided to employees subsequent to the withdrawal of the county from the Social Security System effective December 31, 1982.

While the county intends to continue the plan, it reserves the right to amend and/or terminate the plan, in whole or in part, at any time. Benefits under the plan shall at any time be limited to those that are payable from participant's accounts to the extent then funded by the county's contributions that have already been made and credited to such accounts. Therefore, while participants' existing account balances are at all times fully protected, neither participation in the plan nor eligibility therefore shall entitle any employee to have the plan or any of its provisions continued for his benefit in the future.

(Ord. 2008-0022 § 1, 2008: Ord. 2001-0097 § 2 (part), 2001.)

A.

The following terms when used herein with initial capital letters, unless the context clearly indicates otherwise, shall have the following respective meanings:

"Accounts" means a Participant's Tax Deferred Contributions Account and Matching Contributions Account as specified in Section 5.23.060B.

"Adjustment Factor" means the cost of living adjustment factor prescribed by the Secretary of the Treasury under Section 415(d) of the Code for years beginning after 1987.

"Administrative Committee" means the Auditor-Controller, County Counsel, Director of Personnel, Treasurer and Tax Collector, and Chief Administrative Officer of the County.

"Administrator or Plan Administrator" means the Administrator of the Plan, as defined in Code Section 414(g), and shall be the Administrative Committee which may delegate all or any part of its powers, duties and authorities in such capacity (without ceasing to be the Administrator of the Plan) as hereinafter provided.

"Alternate Payee" means any spouse, former spouse, child or other dependent of a participant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the benefits payable under a plan with respect to such participant.

"Beneficiary" means such person or persons as a Participant may designate to receive his interest under the Plan after his death. The designation may be made, and may be revoked or changed, only by a written instrument (in form acceptable to the Administrative Committee) signed by the Participant and filed with the Administrative Committee before his death. In the absence of a designation and at any other time when there is no existing Beneficiary designated by the Participant, his

Beneficiary shall be his spouse, if living 30 days after the date of his death, or, if not, his children (by blood or adoption) equally (with children of a deceased child to share equally the share of such deceased child). If a Beneficiary cannot be determined pursuant to the preceding sentence, the Beneficiary shall be the Participant's estate.

"Code" means The Internal Revenue Code of 1986, as amended.

"Compensation" means base rate, as established in Title 6 of the Los Angeles County Code, as amended, plus any monthly bonus established as a designated percentage of the base rate in the Level Percentage Conversion Table contained in such Title 6 and any lump sum payment made upon termination pursuant to Section 5.20.070 or Section 6.18.070 of the Los Angeles County Code. Compensation shall not include any of the following:

a.

Overtime compensation;

(1)

Any lump sum pay off or reimbursement for unused accumulated overtime, holiday time, or sick leave benefits except as specified above;

(2)

Compensation pursuant to Section 6.16.010 of the Los Angeles County Code;

b.

Any hourly bonus;

(1)

Any monthly bonus established as a flat dollar amount or as a percentage of base rate.

"Compensation Deferral Agreement" means an agreement pursuant to which an Employee agrees to reduce, or to forego an increase in, his Eligible Earnings and the County agrees to contribute to the Plan the amount of the reduction or the amount foregone as a Tax Deferred Contribution.

"County" means the County of Los Angeles and any governmental entity of which the Los Angeles County Board of Supervisors is the governing body.

"County Contributions" means Tax Deferred Contributions, if any, as specified in Section 5.23.040A and Matching Contributions as specified in Section 5.23.050A.

"Disability" means the complete and continuous inability and incapacity of the Participant to perform the duties of his or her position with the County.

"Eligible Earnings" means any compensation paid to an Employee for service performed for the County which is currently includable in gross income under the Code, or which would be so includable had the Employee not signed a Compensation Deferral Agreement.

"Eligible Employee" means full-time permanent Employee of the County ("employee") who is not a Leased Employee, who is not an Excluded Bargaining Unit, who is not in a class designated by the Board of Supervisors of the County as eligible to participate in an alternative 401(k) Plan and who is designated by the Board of Supervisors of the County as eligible to participate in the Los Angeles County Deferred Earnings Plan. For purpose hereof, "full-time permanent" means any employee appointed to an "A," "L" or "N" item pursuant to Title 6 of the Los Angeles County Code. Any employee who would otherwise cease to be an Eligible Employee because of a change in employment classification and/or entry into an Excluded Bargaining Unit shall remain an Eligible Employee until the last day of the month following the month in which such change or entry occurs or such later date as the Administrative Committee may provide.

"Eligible Rollover Distribution" means any distribution of all or part of the balance to the credit of the Participant in a qualified trust described in Code Section 401(a) (including the Plan where applicable) or in a "conduit" individual retirement account described in Code Section 408(d)(3)(A)(ii), other than (a) any distribution which is one of a series of substantially equal periodic payments made not less frequently than annually for the life (or life expectancy) of the Participant or beneficiary or the joint lives (or joint life expectancies) of such individual and his designated beneficiary, or for a specified period of 10 years or more; (b) any distribution to the extent such distribution is required by Code Section 401(a)(9); and (c) any distribution which is (1) a return of elective deferrals described in Section 1.415-6(b)(6)(iv) of the Treasury Regulations which is returned due to the limitations under Code Section 415, (2) a corrective distribution of excess contributions described in Section 1.401(k)-1(f)(4) of the Treasury Regulations, excess deferrals described in Section 1.402(g)-1(e)(3) of the Treasury Regulations or excess aggregate contributions described in Section 1.401(m)-1(e)(3) of the Treasury Regulations, together with the income allocable thereto, (3) a loan treated as a distribution under Code Section 72(p) and not excepted from such treatment under Section 72(p)(2), (4) a deemed distribution of a loan in default, (5) a dividend on employer securities described in Code Section 404(k), (6) the P.S. 58 cost of life insurance coverage, and (7) any other similar item designated by the Commissioner of Internal Revenue. For distributions made on or after January 1, 2000, an Eligible Rollover Distribution also does not include any "hardship" distribution as defined in Section 5.23.020A20 and under Code Section 401(k).

"Employee" means any person who: (a) has been determined by the County (regardless of any determination made by any other person or entity) to be a common law employee of the County for federal income and/or employment tax purposes; or (b) is a Leased Employee as defined in subsection A23 of this section and as provided in this Section 5.23.030C. If it is determined that an individual was erroneously categorized as not being an Employee, he or she shall be treated as an Employee under the Plan only prospectively from the date of such determination.

"Entry Date" means January 1, 1986 and the first day of every succeeding month unless otherwise provided by the Administrative Committee.

"415 Compensation" means wages, within the meaning of Section 3401(a) of the Code (for purposes of income tax withholding) but determined without regard to any rules that limit the remuneration included in wages based on the nature or location of the employment or the services performed, paid to an Employee by the County. Effective for years beginning on and after January 1, 1998, 415 Compensation also includes any County contribution under a cash or deferred arrangement (including Tax Deferred Contributions) for the year, any County contributions to purchase an annuity contract under Code Section 403(b) under a salary reduction agreement, any other elective deferral (as defined in Code Section 402(g)(3)) and any amount which is contributed to a plan sponsored by the County at the election of the Employee and which is not includable

in gross income under Code Section 125 or Code Section 457. For Limitation Years (as defined in Section 5.23.050F) beginning on and after January 1, 2001, for the purposes of applying the limitations described in Section 5.23.050F, 415 Compensation paid or made available during such Limitation Years shall include elective amounts that are not includable in the gross income of the Employee by reason of Code Section 132(f)(4). For these purposes, the "County" includes any entity the employees of which, together with employees of the County, are required to be treated as if they were employed by a single employer under Code Section 414(b), (c), (m) or (o) (taking into account any adjustment made pursuant to Code Section 415(h)), and any entity whose employees are treated as employees of the County under Code Section 414(n).

"Excluded Bargaining Unit" means an employee representation unit, unless the representative of such unit and the County agree that the Employees in such unit shall be covered hereunder.

"Hardship" means hardship as determined in a uniform and nondiscriminatory manner by the Administrative Committee, taking into account wherever applicable the definition of such term by the Treasury Department in its regulations issued under Code Section 401(k), all on the basis of information supplied to the Administrative Committee by the Participant.

"Investment Funds" means the investment fund or funds selected from time to time by the Administrative Committee, including the Participant Loan fund.

"Investment Manager" means the person(s) appointed by the Plan Administrator who, under such terms and conditions as the Plan Administrator may decide with respect to an Investment Fund, has the discretion to determine which assets in such Fund shall be sold (or exchanged) and what investments shall be acquired for such Fund. In the alternative, an organization which is employed by the County to provide administrative and investment services (by agreement with one or more investment providers) may be designated an Investment Manager.

"Leased Employee" means any person described in Code Section 414(n)(2) for the purposes of the plan qualification requirements listed in Code Section 414(n)(3).

"Matching Contributions" means contributions made by the County as specified in Section 5.23.050A.

"Matching Contribution Account" means an account to which the Matching Contributions allocated to each Participant, and any earnings and investment gains or losses allocable thereto, are credited.

"Net Revenues" means an excess of budgeted revenues for the current fiscal year and any such accumulated excesses from prior fiscal years over budgeted expenditures, for the current fiscal year of the County, excluding for this purpose County Contributions to the Plan, as determined by the Administrative Committee and certified by the County Auditor-Controller.

"Participant" means an Eligible Employee or a former Eligible Employee who has become and continues to be a Participant of the Plan in accordance with the provisions of Section 5.23.030.

"Participant Loan Fund" means the Investment fund provided for in Section 5.23.070H.

"Plan" means the County of Los Angeles Deferred Earnings Plan, the terms and provisions of which are herein set forth, as the same may be amended, supplemented or restated from time to time.

"Plan Year" means a calendar year.

"QDRO" means a "qualified domestic relations order," which is a domestic relations order that the Administrative Committee has determined satisfies the requirements of a qualified domestic relations order as defined in Code Section 414(p)(1) and is consistent with the terms of this Plan.

"Qualified Plan" means an employee benefit plan that is qualified under Section 401(a) of the Code.

"Tax Deferred Contributions" means contributions made by the County pursuant to a Compensation Deferral Agreement as specified in Section 5.23.040A.

"Tax Deferred Contributions Account" means an account to which the tax Deferred Contributions made for each Participant, and any earnings and investment gains or losses allocable thereto, are credited.

"TPA" means a third-party administrator who has entered into a contract with the County to provide record-keeping or other administrative services for the Plan.

"Trust Agreement" means any agreement between the County and a Trustee as in effect from time to time.

"Trustee" means any person that is a custodian or trustee and that is appointed by the Board of Supervisors of the County to hold and administer some or all of the assets of the Plan pursuant to Section 5.23.080.

"Valuation Date" means the date with respect to which the value of the Plan assets or any portion thereof is determined. Unless otherwise determined by the Administrative Committee, a Valuation Date occurs each day.

"Year of Service" means an Employee shall be credited with a Year of Service for each Plan Year in which he is employed by the County and is a Participant in the Plan or a participant in an alternative 401k Plan sponsored by the County or in the County of Los Angeles Deferred Compensation and Thrift Plan (the "Horizons Plan").

B.

Construction.

Unless the context otherwise indicates, the masculine wherever used herein shall include the feminine and neuter, the singular shall include the plural and words such as "herein," "hereof," "hereby," "hereunder," and words of similar import refer to the Plan as a whole and not to any particular part thereof.

Where headings have been supplied to portions of the Plan they have been supplied for convenience only and are not to be taken as limiting or extending the meaning of any of its provisions.

Wherever the word "person" appears in the Plan, it shall refer to both natural and legal persons.

Except to the extent federal law controls, the Plan shall be governed, construed and administered according to the laws of the State of California. All persons accepting or claiming benefits under the Plan shall be bound by and deemed to consent to its provisions.

(Ord. 2016-0004 § 1, 2016; Ord. 2004-0001 § 3, 2004; Ord. 2001-0097 § 2 (part), 2001.)

Notwithstanding any provision in the Plan to the contrary or any other law, for any Eligible Employee who becomes a Participant in this Plan on or after January 1, 1996, the annual Compensation and Eligible Earnings taken into account for all purposes under the Plan shall be limited to $150,000.00 as adjusted for the calendar year to reflect increases in the cost-of- living in accordance with Code Sections 401(a)(17)(B) and 415(d).

(Ord. 2001-0097 § 2 (part), 2001.)

A.

Commencement of Participation. An Eligible Employee may become a Participant by entering into a Compensation Deferral Agreement before an Entry Date. Such an Eligible Employee's participation shall become effective with respect to Eligible Earnings payable for services rendered to the County on and after the next Entry Date following the date the Compensation Deferral Agreement is entered into.

B.

Duration of Participation. An Employee or former Employee shall remain a Participant so long as (1) he is an Eligible Employee covered by a Compensation Deferral Agreement, or (2) a portion of the Investment Funds is credited to his Account and held for his benefit by the Trustee. However, a Participant who ceases to be an Eligible Employee who is covered by a Compensation Deferral Agreement may have no Tax Deferred Contributions made for him until he again commences participation pursuant to subsection A of this section.

C.

Leased Employees.

Inclusion as Employee. A Leased Employee shall be treated as an Employee only for the purposes of the plan qualification requirements listed in Code Section 414(n)(3).

Exception. Subsection C1 shall not apply to any Leased Employees if the safe harbor set forth in Code Section 414(n)(5) applies.

(Ord. 2001-0097 § 2 (part), 2001.)

A.

Tax Deferred Contributions. Subject to the limitations contained in Section 5.23.050 F and G and subsection E of this Section 5.23.040, a Participant may, pursuant to a Compensation Deferral Agreement, have the County contribute to the Plan a percentage or dollar amount of his Eligible Earnings during any Plan Year.

B.

Payments to Trustee. Each Participant's Eligible Earnings shall be reduced each pay date pursuant to his authorization on a Compensation Deferral Agreement and the resulting Tax Deferred Contributions shall be transmitted by the County to the Trustee and credited to the Participant's Account within a period that is not longer than is reasonable for the proper administration of the accounts of Participants, but in no event later than the 15th business day of the month following the month in which the Participant's Tax Deferred Contributions otherwise would have been payable to such Participant in cash.

C.

Changes in Tax Deferred Contributions. The percentage or dollar amount designated by a Participant pursuant to subsection A of this section shall continue in effect, notwithstanding any changes in the Participant's Eligible Earnings. A Participant may, however, in accordance with subsection A of this section, change the percentage or dollar amount of the Tax Deferred Contributions that are being made for him once each month by giving prior written notice of such change to the Administrative Committee, effective with respect to Eligible Earnings payable for services rendered to the County on and after the Entry Date following the date such notice is filed.

D.

Suspension of Tax Deferred Contributions. By giving prior written notice thereof to the Administrative Committee, a Participant may suspend the Tax Deferred Contributions that are being made for him at any time effective with respect to Eligible Earnings payable for services rendered to the County on or after the Entry Date following the date such notice is filed. A Participant who has suspended the Tax Deferred Contributions that were being made for him may again have such Contributions made for him by filing a new Compensation Deferral Agreement with the Administrative Committee in accordance with Section 5.23.030A.

E.

Dollar Limitation. Notwithstanding any other provision of the Plan, the amount of the Tax Deferred Contributions pursuant to a Participant's Compensation Deferral Agreement for any calendar year shall not exceed $7,000.00 adjusted for the calendar year to reflect the increases in cost-of-living in accordance with Code Sections 402(g)(5) and 415(d) (the "Deferral Limit"); provided, however, that if the Participant also participates in the Los Angeles County Deferred Compensation and Thrift Plan (the "Horizons Plan"), then a combined Deferral Limit of $7,500.00 (as adjusted for the calendar year to reflect increases in the cost-of-living in accordance with Code Sections 457(e)(15) and 415(d)) applies to the aggregate for the Plan Year of the Participant's Tax Deferred Contributions under this Plan and the Participant's contributions (both "Deferred Compensation Contributions" and "Matching Contributions") under the Horizons Plan. If, for any calendar year, the amount of the Tax Deferred Contributions pursuant to a Participant's Compensation Deferral Agreement does exceed the Deferral Limit, the excess amount of such Tax Deferred Contributions (and any earnings thereon calculated from the date contributed to the Plan to the date distributed) shall be distributed to the Participant in cash no later than April 15th of the next following calendar year.

(Ord. 2001-0097 § 2 (part), 2001.)

A.

Amount of Matching Contributions.

Generally. Subject to the provisions of the Plan and the Trust Agreement, effective January 1, 1989, the County shall contribute to the Investment Funds on account each month, out of its Net Revenues, an amount equal to three percent of each Participant's monthly Compensation, provided that the year-to-date cumulative Matching Contributions do not exceed such Participant's year-to-date cumulative Tax Deferred Contributions.

Special One-Time UAPD Settlement Contribution. Each Participant who was classified as Physician, M.D. or Physician Specialist, M.D. during 2002 and 2003 and represented by the Union of American Physicians and Dentists ("UAPD") during that period, shall receive a one-time contribution, treated as a Matching Contribution, equal to the amount agreed upon and reflected in the Settlement Agreement and General Release entered between the County and the UAPD in connection with the settlement of a lawsuit filed in Los Angeles County Superior Court, Case No. BS081517, provided that such Participant: (a) executes a settlement agreement and release in a form acceptable to the County ("Release") and returns it to the County by no later than September 30, 2007; and (b) remains an Employee on the date such special contribution is made. This special contribution will be made as soon as administratively practicable on or after July 1, 2007, provided that the Release has been executed and returned to the County before that date. If the Release is executed and returned to the County after that date, but before September 30, 2007, this special contribution will be made as soon as administratively practicable on or after the date that the executed Release is received by the County.

B.

Payments to Trustee.

Matching Contributions shall be paid to the Trustee in cash at least monthly and shall be based upon the amount of Tax Deferred Contributions made during the month for which such Matching Contributions are made. Any other provision herein to the contrary notwithstanding, if it appears to the Administrative Committee that the County will not be able to make County Contributions for a Plan Year or any part thereof because it appears there will not be sufficient Net Revenues, the County shall cease making County Contributions for such Plan Year on a monthly basis and shall make County Contributions, if any, within 30 days after the amount, if any, of Net Revenues for such Plan Year is determined.

If the amount of Matching Contributions for a Plan Year exceeds the amount which may be contributed to the Plan in accordance with subsection A of this section (except in the case of a mistake of fact covered by Section 5.23.050E2), such excess Matching Contributions shall be forfeited, placed in a suspense account and applied in accordance with Section 5.23.070L.

C.

Allocation of Matching Contributions. Matching Contributions shall be allocated and credited each month to the Matching Contributions Account of each Participant for whom Tax Deferred Contributions are made during such month, with each such Participant receiving a portion of the Matching Contributions equal to the amount calculated according to the provisions of subsection A of this section. In the event that Matching Contributions are insufficient to provide each Participant with his fully allocated portion as provided in the preceding sentence, the Matching Contributions that are made shall be allocated proportionally to the Matching Contributions Account of each Participant in a manner consistent with such sentence.

D.

Reduction of Matching Contributions. The amount of Matching Contributions determined to be payable to the Investment Funds pursuant to this section shall be reduced in accordance with Section 5.23.070L.

E.

Return of Contributions to County.

Except as provided in subsection E2 of this section or in subsections B or D of this section or Section 5.23.140E, the Investment Funds shall never inure to the benefit of the County and shall be held for the exclusive purpose of providing benefits to Participants and their Beneficiaries and defraying reasonable expense of administering the Plan.

If any County Contribution is made by the County due to a mistake of fact, such Contribution (but not the earnings thereon) shall, to the extent permitted by applicable law, at the direction of the Administrative Committee, be returned to the County within one year after it is made; if such contribution constituted a Tax Deferred Contribution, it shall thereafter be returned to the Participant to the extent permitted by applicable law.

F.

Provision Pursuant to Code Section 415(c).

Definitions. For the purposes of this Section 5.23.050F and Section 5.23.050G, the following definitions apply:

a.

"Annual Addition" means the sum of the following amounts: (1) all contributions made by the County that are allocated to a Participant's account under a qualified defined contribution plan maintained by the County, (2) all contributions made by the Participant to a qualified defined contribution plan maintained by the County, (3) all forfeitures allocated to a Participant's account under a qualified defined contribution plan maintained by the County, and (4) any amount allocated to an individual medical benefit account (as defined in Code Section 415(l)(2)) of a Participant that is part of a pension or annuity plan maintained by the County (except that the 25 percent of 415 Compensation limit, or, for Limitation Years beginning on or after January 1, 2007, the 100 percent of 415 Compensation limit, does not apply to such an individual medical benefit account).

b.

"County" means any entity the employees of which, together with employees of the County, are required to be treated as if they were employed by a single employer under Code Section 414(b), (c), (m) or (o) (taking into account any adjustment made pursuant to Code Section 415(h)), and any entity whose employees are treated as employees of the County under Code Section 414(n).

c.

"Limitation Year" means the twelve consecutive month period used by a qualified plan for the purposes of computing the limitations on benefits and annual additions under Code Section 415. The Limitation Year for this Plan is the Plan Year.

Limit on Contributions. Notwithstanding any other provisions of the Plan, for Limitation Years before January 1, 2007, the Annual Addition for a Participant for any Limitation Year shall in no event exceed the lesser of (1) $30,000.00 or such higher adjusted amount as shall be prescribed by the Secretary of the Treasury pursuant to Code Section 415(d) to reflect increases in the cost of living, or (2) 25 percent of the Participant's 415 Compensation during the Plan Year. For Limitation Years beginning on or after January 1, 2007, the Annual Addition for a Participant for any Limitation Year shall not exceed the lesser

of (y) $40,000, as adjusted for increases in the cost-of-living under Code Section 415(d), or (z) 100 percent of the Participant's 415 Compensation for the Plan Year.

Excess Annual Additions. If a Participant's Annual Additions would exceed the limitations of subsection F2 for a Limitation Year, Matching Contributions allocable to such Participant's Account for such Limitation Year shall, to the extent necessary to cause the limitation in subsection F2 to be satisfied, be held in a suspense account and used to reduce Matching Contributions for the next Limitation Year for that Participant if such Participant is covered by the Plan at the end of such Limitation Year; and if he is not covered by the Plan at the end of any such Limitation Year, the Matching Contributions held in the suspense account shall be allocated and reallocated pro rata (based on each Participant's Eligible Earnings) to the Accounts of other Participants, except that such allocation or reallocation shall not cause the limitations of subsection F2 to be exceeded for any other Participant for any other Limitation Year. Investment gains and losses shall not be allocated to the suspense account during the period such suspense account is required to be maintained. In the event of the termination of this Plan while there exists a balance in the suspense account, to the extent such balance cannot be allocated to Participant's Account without violating the limitations of this section, such balance shall revert to the County. If the allocation of Matching Contributions to the suspense account as described herein is not sufficient to cause the limitations of subsection B to be satisfied, Tax Deferred Contributions made for such Participant for such Limitation Year (together with gains attributable thereto) shall be returned to him to the extent necessary to satisfy the limitations under subsection F2. In the event a reduction is necessary to satisfy subsection B, and the Participant participates in two or more defined contribution plans maintained by the County, the excess amount to be reduced will be deemed to consist of the Annual Addition last allocated. If an excess amount was allocated to a Participant on an allocation date of this Plan that coincides with an allocation date of another plan, the excess amount attributed to this Plan (to be reduced as provided above) will be the product of (1) the total excess amount allocated as of such date, and (2) the ratio of the Annual Addition allocated to the Participant for the Limitation Year under this Plan to the total Annual Additions allocated to the Participant for the Limitation Year for this and all other qualified defined contribution plans.

Aggregation of Plans. For the purposes of applying the limitations set forth in this Section 5.23.050F and Section 5.23.050G, all qualified defined benefit plans (whether or not terminated) ever maintained by the County shall be treated as one defined benefit plan, and all qualified defined contribution plans (whether or not terminated) ever maintained by the County shall be treated as one defined contribution plan.

G.

Provision Pursuant to Code Section 415(e). Notwithstanding any other provision of the Plan, in the case of a Participant who is also a participant in any defined benefit plan qualified under Code Section 401(a), whether or not terminated, maintained by the County, the sum of the fraction attributable to this Plan (as determined under Code Section 415(e)(3)) and the fraction attributable to such defined benefit plan (as determined under Code Section 415(e) (2)) for any Plan Year shall in no event exceed 1.0. In the event a reduction is necessary to avoid exceeding the limitation set forth in this subsection, the affected Participant's annual additions under this Plan shall be reduced to the extent necessary to avoid exceeding such limitation. This Section 5.23.050G shall be inapplicable for Plan Years beginning on and after January 1, 2000.

(Ord. 2007-0084 § 1, 2007; Ord. 2001-0097 § 2 (part), 2001.)

A.

Investment of Funds.

County Contributions shall be allocated to the Investment Funds as specified under subsections C and D of this section. Subject to the other applicable provisions of the Plan and the Trust Agreement, the Trustee shall hold, manage, administer,

value, invest, reinvest, account for and otherwise deal with each Investment Fund separately. The Trustee or Investment Manager shall invest and reinvest the principal and income of each Fund and shall keep each such Fund invested, without distinction between principal and income, in such property, investments and securities as the Investment Manager for such fund may deem to be suitable and in accordance with the requirements for such Fund specified by the Administrative Committee upon its creation.

Dividends, interest and other distributions received in respect of each Investment Fund shall be reinvested in the same Fund in accordance with the provisions of the Trust Agreement.

The Trustee, in its sole discretion, may keep such portion of each Investment Fund in cash or cash equivalents either pending the selection and purchase of suitable investments under such Fund or as the Trustee may from time to time deem to be necessary or advisable to maintain sufficient liquidity to meet the obligations of the Plan or for other reasons.

B.

Account. Each Participant shall have established for him a Tax Deferred Contributions Account and a Matching Contributions Account to reflect the Tax Deferred Contributions and Matching Contributions, respectively, that are made for him. Separate records shall be maintained for each such Account showing the portion of such Account invested in each Investment Fund and showing the amount of County Contributions to each such Account, payments and withdrawals therefrom and the amount of income, expenses, gains and losses attributable thereto. Both such Accounts are referred to herein as a Participant's "Account" and the interest of each Participant hereunder at any time shall consist of his Account balance (as determined in subsection E2 of this section) as of the last preceding Valuation Date plus credits and minus debits to such Account since that Valuation Date.

C.

Investment by Participants.

Each Participant may instruct the Trustee or TPA, as applicable, to allocate his Tax Deferred Contributions and his Matching Contributions if such Matching Contributions are 100 percent vested and nonforfeitable (collectively, "Contributions") among the Investment Funds. A Participant may change the allocation of future Contributions and may transfer past Contributions, adjusted for earnings, gains and losses, and applicable Plan charges, if any, from one Investment Fund to another. Any change to amounts already credited to a Participant's Account will be based on the value of such Account on the Valuation Date immediately preceding the date that such change is effective. A Participant may make investment elections at the time and manner prescribed by procedures established from time to time by the Administrative Committee.

In addition, effective October 1, 1999 each Participant likewise may instruct the Trustee or TPA, as applicable, to allocate among the investment funds, the portion of his or her Matching Contributions that is vested and nonforfeitable in accordance with Section 5.23.060 C1.

D.

Investment by Administrative Committee. Plan assets that are not invested pursuant to Participant instructions under Section 5.23.060 C, including but not limited to Plan assets for which no Participant investment instructions are received, nonvested Matching Contributions that are not subject to Participant instructions under Section 5.23.060 C, forfeiture accounts, accumulated fees and unallocated Plan earnings, shall be invested by the Trustee as instructed by the Administrative Committee in one or more Investment Funds as the Administrative Committee in its discretion may determine.

E.

Trust Fund Allocation and Valuation.

Allocation.

a.

Except as may otherwise be provided by the Administrative Committee, the assets credited to each Participant's Accounts shall be allocated among the Investment Funds in accordance with the investment option or options chosen by such Participant or the Administrative Committee, as the case may be, effective no later than the first business day following the business day on which the Trustee or its Agent has received appropriate instructions, or such later date as is commercially reasonable under the circumstances.

b.

As of each Valuation Date, the net gain or loss of each Investment Fund, determined in accordance with Section 5.23.060 E2 below, shall be allocated by the Trustee or its Agent in accordance with the instructions received by the Trustee from the TPA to the Accounts of Participants in such Investment Funds in proportion to the amounts of such Accounts invested in such Investment Fund on such Valuation Date, exclusive of amounts to be credited but including amounts (other than the net loss, if any, determined pursuant to Section 5.23.060 E2) to be debited to such Accounts as of such Valuation Date.

Valuation.

a.

As of the close of business each Valuation Date, the TPA shall determine or cause to be determined the value of each Investment Fund. The TPA may rely on net asset value calculations, book values and other data with respect to the value of Plan assets held in the Investment Funds furnished to it by the Administrative Committee, Investment Managers, the County Treasurer, custodians or other entities authorized to provide valuation data. The TPA shall communicate such valuation to the Trustee. The TPA shall be responsible for monthly reconciliation of its records with the records of the third-parties from which it receives valuation data.

b.

Each such valuation shall be made on the basis of the net gain or loss to each such Investment Fund between the current Valuation Date and the last preceding Valuation Date. The net gain or loss of an Investment Fund shall include realized and unrealized earnings, interest income, dividends actually paid and other income of such Fund during such period, and shall be reduced by expenses paid, if any, that are to be charged to such Investment Fund in accordance with the terms of the Plan and the Trust Agreement. The transfer of funds to or from an Investment Fund, the allocation of Tax Deferred Contributions and Matching Contributions, and payments, distributions and withdrawals from an Investment Fund to provide benefits under the Plan for Participants or Beneficiaries shall not be deemed to be income, expenses or losses of the Investment Fund. A similar valuation shall be made at any other time the TPA, Administrative Committee or its Agent deems it appropriate to make such a valuation.

c.

Notwithstanding the foregoing, the Administrative Committee or its Agent may, in accordance with applicable requirements of applicable law, instruct the TPA to (1) adopt such accounting procedures as the Administrative Committee or its Agent considers appropriate, reasonable and equitable to establish a proportionate crediting of net gain or loss of an Investment Fund and of Contributions made to an Investment Fund as of each Valuation Date, and (2) adopt such other valuation procedures as the Administrative Committee or its Agent considers appropriate, reasonable and equitable to determine the value of the Investment Funds. Subject to the TPA's rights and duties under the contract between it and the County, the

reasonable and equitable decision of the TPA as to the value of each Investment Fund as of each Valuation Date shall be conclusive and binding upon all Participants and Beneficiaries having any interest, direct or indirect, in such Investment Fund.

No Guarantee Against Loss. The County, the Board, the Administrative Committee, the TPA and the Trustee do not guarantee in any manner the Investment Funds or any part thereof against loss or depreciation. All persons having an interest in the Investment Funds shall look solely to such Funds for payment with respect to such interest. The County, the Board, the Administrative Committee, the TPA and the Trustee are not authorized to advise a Participant as to that Participant's selection of Investment Funds, and the fact that designated Investment Funds are available to Participants for investment shall not be construed as a recommendation for the investment of contributions hereunder in all or any of such Funds. The selection of an Investment Fund by a Participant is his or her sole responsibility and shall constitute an exercise of control over the assets of his or her Investment Accounts. Each Participant who so exercises control shall, by such exercise, release and agree, on his or her behalf and on behalf of his or her heirs and beneficiaries, to indemnify and hold harmless the County, the Board, the Administrative Committee, the TPA, the Trustee and any Agent, officer or employee of any of them, from and against any claim, demand, loss, liability, costs or expense (including reasonable attorneys' fees) caused by or arising out of such exercise, including without limitation any diminution in value or losses incurred from such exercise.

(Ord. 2001-0097 § 2 (part), 2001.)

A.

Distributions Only as Provided. A Participant or Beneficiary shall only be paid vested benefits under the Plan as provided in this section. A Participant or Beneficiary who is eligible to receive a distribution under the Plan shall submit an application for benefits to the Administrative Committee, furnishing such information as the Administrative Committee or its duly authorized agent may require.

B.

Nonforfeitability. Any amount credited to a Participant's Tax Deferred Contributions Account shall be nonforfeitable and fully vested. Any amount credited to a Participant's Matching Contributions Account shall vest and become nonforfeitable at the rate of 20 percent for each Year of Service completed by such Participant.

C.

Distributions on Retirement or Disability.

Notwithstanding the provisions of subsection B of this section, the entire Account of a Participant whose employment with the County terminates after he is age 70 or qualified for a service retirement benefit under the County Employees Retirement Law of 1937, as amended, if earlier, or whose employment with the County terminates because of Disability, shall be nonforfeitable and fully vested. Such Account shall be paid to the Participant or his Beneficiary, in cash, in accordance with one of the following methods as the Participant determines:

a.

A lump sum payment; or

b.

Equal monthly, quarterly or annual installments not extending over more than 15 years; or

c.

Consecutive periodic payments for the life of the Participant or for the lives of the Participant and his spouse and the last survivor of them; or

d.

A combination of the methods of payment described in subsections C1a, b and c above.

All distributions hereunder shall be made or begun as soon as administratively practicable after the Participant's application is filed pursuant to subsection A of this section and approved by the Administrative Committee. For purposes of a distribution, the date that such Participant's interest in an Investment Fund is liquidated or redeemed, partially or in full, to satisfy the distribution application shall be the applicable Valuation Date.

D.

Distributions on Death.

Notwithstanding the provisions of subsection B of this section, after the death of a Participant at any time whatsoever, his entire Account shall be nonforfeitable and fully vested. Such Account shall be paid by the Trustee to the Participant's Beneficiary after the Trustee is notified by the Administrative Committee of the Participant's death.

A Participant shall have the right to designate that after his death his Account shall be paid to or for his Beneficiary in accordance with one of the methods set forth in subsection C1 of this section. Any designation by a Participant of the method of payment of death benefits hereunder may be made, changed or revoked by the Participant in writing in a form prescribed by the Administrative Committee and filed with the Administrative Committee prior to the Participant's death.

If a Participant does not expressly designate the method of distribution of his Account, or if such designation is for any reason not effective, such Account shall be paid to or for the Beneficiary in accordance with one of the methods set forth in subsection C1 of this section as such Beneficiary, in his discretion, shall determine and designate to the Administrative Committee.

E.

Distributions of Vested Interest.

A Participant whose employment with the County terminates for any reason other than the reasons specified in subsections C or D of this section shall receive his entire Tax Deferred Contributions Account and the portion of his Matching Contributions Account in which he is vested in accordance with subsection B of this section. The portion of his Matching Contribution Account which is not so vested shall be immediately forfeited. If a Participant forfeits a portion of his Account and he is later rehired by the County, his employment with the County or participation in the Plan after such rehire shall have no effect on the amount of the forfeiture. If such a rehired Participant subsequently becomes party to another Compensation Deferral Agreement, any Matching Contributions thereafter made by the County and any earnings and investment gains or losses allocable thereto shall be credited to a separate Matching Contributions Account maintained for such Participant and shall vest as provided herein without regard to any Year of Service prior to his rehire.

Amounts distributed pursuant to subsection E1 of this section shall be paid in accordance with one of the methods set forth in subsection C1 of this section as selected by the Participant.

F.

Latest Time of Distribution.

Notwithstanding any other provision hereof to the contrary, distributions under the Plan shall be made in accordance with Code Section 401(a)(9) (including Section 401(a)(9)(G)) and the Treasury Regulations promulgated thereunder (including Section 1.401(a)(9)-2); provided, however, that such provisions shall override the other distribution provisions of the Plan only to the extent that such other Plan provisions provide for a distribution that is less rapid or of a lesser amount than required under such provisions of the Code and Regulations. Nothing contained in this Section 5.23.070F shall be construed as providing an optional form of payment that is not available under the other distribution provisions of this Section 5.23.070.

General Rule. The entire interest of each Participant under the plan:

a.

Either will be distributed to him not later than his taxable year in which he attains age 70-1/2 or in his taxable year in which he retires from County service, whichever is the later (his "Required Beginning Date"); or

b.

Will be distributed, commencing not later than his Required Beginning Date, (1) in accordance with Regulations prescribed by the Secretary of the Treasury, over the life of such Participant or over the lives of such Participant and his designated Beneficiary, or (2) in accordance with such Regulations, over a period not extending beyond the life expectancy of such Participant or the life expectancy of such Participant and his designated Beneficiary.

Distributions Upon Death of a Participant. Upon the death of a Participant, the following distribution provisions will apply to limit the Beneficiary's ability to delay distributions.

If the Participant dies after distribution of his benefit has begun, the remaining portion of his benefit will continue to be distributed at least as rapidly as under the method of distribution being used prior to the Participant's death.

If the Participant dies before distribution of his benefit has begun, his entire benefit will be distributed no later than five years after his death, unless an individual who is a designated Beneficiary elects to receive distributions in substantially equal installments over the Beneficiary's life or over a period not extending beyond the life expectancy of the Beneficiary (and, if the Beneficiary is not the Participant's spouse, not extending beyond 15 years in accordance with the distribution options available under Sections 5.23.070C and D) beginning no later than December 31 of the calendar year following the calendar year in which the Participant died. If the designated Beneficiary is the Participant's surviving spouse, the date distributions are required to begin is the later of December 31 of the calendar year following the calendar year in which the Participant died or December 31 of the calendar year in which such Participant would have attained age 70-1/2. If the spouse dies before such payments begin, subsequent distributions will be made as if the spouse had been the Participant.

Generally, distributions will be treated as having begun to the Participant for the purposes of this Section 5.23.070F on the employee's Required Beginning Date, even though payments may actually have been made before that date; provided, however, that if distributions irrevocably (except for acceleration) commence to an employee under an annuity contract, distributions will be considered to have begun on the actual commencement date.

Recalculation of Life Expectancies. The Participant (or the Participant's spouse if the Participant dies before distributions have begun) may elect not to recalculate annually the life expectancy of the Participant and the Participant's spouse (other than in the case of a life annuity) in accordance with Code Section 401(a)(9)(D) and the Regulations thereunder. Such election must be made prior to the time of the first required distribution under Code Section 401(a)(9). If the Participant (or spouse if applicable) fails to make such election, life expectancies will be recalculated annually in accordance with the Regulations.

2001 Proposed Regulations. With respect to distributions under the Plan made for calendar years beginning on or after January 1, 2001, the Plan will apply the minimum distribution requirements of Section 401 (a)(9) of the Internal Revenue Code in accordance with the regulations under Section 401 (a)(9) that were proposed on January 17, 2001, notwithstanding any provision of the Plan to the contrary. This amendment shall continue in effect until the end of the last calendar year beginning before the effective date of final regulations under Section 401 (a)(9) or such other date as may be specified in guidance published by the Internal Revenue Service.

G.

Withdrawal of Contributions. Upon not less than 30 days' prior written notice filed with the Administrative Committee, effective as of the Entry Date following notification of the Trustee and Investment Manager by the Administrative Committee, a Participant who is an Employee may withdraw in cash all or a part of his Account balance as of the immediately preceding Valuation Date as provided and in the order set forth below. Except in cases of Hardship, a Participant may make only two withdrawals pursuant to this subsection per Plan Year.

A Participant may withdraw all or a part of his Matching Contributions Account in which he has a vested interest but a Participant may not make a withdrawal pursuant to this subsection unless he is either credited with at least 10 Years of Service or such withdrawal is made due to Hardship.

a.

Participant who has withdrawn his entire Matching Contributions Account may in addition withdraw all or a part of his Tax Deferred Contributions Account (excluding any earnings credited to such Account on or after January 1, 1989), provided that the Participant has attained age 59-1/2 or demonstrated to the Administrative Committee that he is suffering from Hardship. A withdrawal shall not be permitted for Hardship unless such withdrawal is on account of an immediate and heavy financial need of the Participant and is necessary to satisfy such financial need.

b.

Effective as of January 1, 2006, the determination of whether a Participant has an immediate and heavy financial need shall be made by the Administrative Committee on the basis of all relevant facts and circumstances. Nevertheless, a withdrawal shall be deemed to be made on account of an immediate and heavy financial need of a Participant if the withdrawal is on account of:

(1)

Expenses for (or necessary to obtain) medical care that would be deductible under Section 213(d) of the Code (determined without regard to whether the expenses exceed 7.5% of adjusted gross income);

(2)

The purchase (excluding mortgage payments) of a principal residence of the Participant;

(3)

The payment of tuition for the next semester or quarter of post-secondary education for the Participant, the spouse, the children, or the dependents (as defined in section 152 of the Code, and for taxable years beginning on or after January 1, 2005, without regard to section 152(b)(1), (b)(2) or (d)(1)(B) of the Code);

(4)

The need to prevent the eviction of the Participant from his principal residence or the foreclosure on the mortgage of the Participant's principal residence;

(5)

On and after January 1, 2007, payment for burial or funeral expenses for the Participant's deceased parent, spouse, children or dependents (as defined in section 152 of the Code but without regard to subsection 152(d)(1)(B));

(6)

On and after January 1, 2007, expenses for the repair of damage to the Participant's principal residence that would qualify for the casualty deduction under section 165 of the Code (determined without regard to whether the loss exceeds 10% of adjusted gross income); or

(7)

Any other financial need which the Commissioner of Internal Revenue, through the publication of revenue rulings, notices, and other documents of general applicability, may from time to time designate as a deemed immediate and heavy financial need as provided in Section 1.401(k)-1(d)(2)(iii)(C) of the Treasury Regulations.

c.

Effective as of January 1, 2006, a withdrawal shall not be treated as necessary to satisfy an immediate and heavy financial need of a Participant to the extent the amount of the withdrawal exceeds the amount required to relieve the financial need or to the extent such need may be satisfied from other resources that are reasonably available to the Participant. The determination of whether the amount of a withdrawal is necessary to satisfy an immediate and heavy financial need shall be made by the Administrative Committee on the basis of all relevant facts and circumstances. Nevertheless, the amount of a withdrawal shall be deemed to be necessary to satisfy an immediate and heavy financial need of a Participant if: (1) the amount of the distribution is not in excess of the amount of the immediate and heavy financial need; (2) the Participant has obtained all distributions (other than Hardship distributions) and nontaxable (at the time of the loan) loans available under the terms of this Plan or any other plans of deferred compensation maintained by the County; and (3) the Participant irrevocably elects to suspend all elective contributions and employee contributions under this Plan (e.g., After-Tax Contributions and Tax Deferred Contributions) and all other plans of deferred compensation maintained by the County from the date on which the withdrawal is made until the close of the six-calendar-month period that began on the first day of the month following the date on which the withdrawal is made. For the purposes of this subsection c, the term "other plans of deferred compensation" include, without limitation, all qualified and non-qualified deferred compensation plans and any cash or deferred arrangements that are part of a cafeteria plan, except that it does not include the mandatory employee contribution component of a defined benefit plan or welfare plan. For the purposes of this subsection c the County includes the County and all other employers which are required to be treated as a single "employer" under Treasury Regulation section 1.401(k)-6.

H.

Loans to Participants.

Upon application by a Participant, but subject to such uniform and nondiscriminatory rules as the Administrative Committee may establish and to the provisions of this subsection, effective July l, 1987, the Administrative Committee may in its

discretion direct the Trustee to make a loan or loans to a Participant from his separate account in the Participant Loan Fund in an amount not exceeding the excess of:

a.

The lesser of:

(1)

$50,000.00, reduced by the excess (if any) of:

(a)

The highest outstanding balance of loans to such Participant from the Plan during the one-year period ending on the day before the date on which such loan was made,

(b)

Over the outstanding balance of loans to such Participant from the Plan on the date on which such loan was made, or 50 percent of the vested portion of the Participant's Account balance;

b.

Over the outstanding balance of any other loan or loans from the Plan to the Participant; provided, however, that if 50 percent of the vested portion of the Participant's Account balance is less than $10,000.00, the amount in subsection H2 of this section shall be the lesser of $10,000.00 or 80 percent of the vested portion of the Participant's Account balance. The minimum loan that may be made from the Plan is $2,000.00 (or such other amount determined by the Administrative Committee). All loans hereunder shall be subject to such loan processing fees charged by the Trustee and Investment Manager as are approved by the Administrative Committee, which fees shall be paid by borrowing Participants.

As soon as practicable after the receipt of all necessary information and directions from the Administrative Committee to make a loan and prior to making any loan pursuant to subsection H1 of this section, but in no event later than 30 days after the applicable Valuation Date, the Trustee or Investment Manager shall transfer, in accordance with procedures determined by the Administrative Committee, to the Participant Loan Fund from the assets invested in other Investment Funds allocated to the Account of each borrowing Participant an amount equal to the amount of such Participant's Account. The Participant Loan Fund shall be invested solely in loans to Participants made pursuant to this subsection and shall at all times be at least equal to the total amount of such loans. All interest and principal payments made by such Participants shall be credited to the separate account within the Participant Loan Fund of each Participant who borrows money from the Plan. Except as otherwise provided by the Administrative Committee, as of each Valuation Date all cash in the Participant Loan Fund shall be transferred to the other Investment Funds in accordance with each borrowing Participant's investment choice under Section 5.23.060 C.

Loans made pursuant to subsection H1 of this section:

a.

Shall be secured by (l) the portion of the Participant's Account attributable to Matching Contributions and, to the extent necessary, the portion of the Participant's Account attributable to Tax Deferred Contributions, and (2) such other collateral as the Administrative Committee may require;

b.

Shall be available to all Participants on a reasonably equivalent basis that shall not result in discrimination in favor of Employees who are officers or highly compensated within the meaning of Code Section 401; and

c.

Shall be evidenced by a promissory note executed by the Participant which provides for:

(1)

A reasonable rate of interest determined by the Administrative Committee, and

(2)

For repayment (a) within a specified period of time, which shall not extend beyond five years from the time the loan is made unless the loan proceeds are used to acquire a dwelling which within a reasonable time is to be used as a principal residence (as determined at the time the loan is made) of a Participant, in which case the promissory note shall provide for repayment within 15 years of the time the loan is made unless otherwise provided by the Administrative Committee at the time the loan is made, and (b) in substantially equal payments, at least quarterly, over the term of the loan, and (c) upon such other terms and conditions as the Administrative Committee shall determine.

Notwithstanding any other provision of the Plan, such loan shall be a first lien against the Participant's Account and any amount of principal or interest due and unpaid thereon shall be deducted from such Account before the payment of any portion thereof to the Participant or his Beneficiary.

Notwithstanding the foregoing provisions of this subsection, loans made to Participants under the Plan shall be due and payable upon the Participant's termination of employment with the County, whether by death, retirement or otherwise.

I.

Order of Distributions. Distributions (including withdrawals) shall be made from the applicable portion of a Participant's Account invested in the Investment Funds on a pro rata basis from each Investment Fund, unless a different order of distribution is directed by the Participant. Each Participant by written notice (in form acceptable to the Administrative Committee) signed by the Participant and filed with the Administrative Committee may direct the order in which distributions are to be made if other than on a pro rata basis.

J.

Small Accounts. Notwithstanding the foregoing provisions of this section, if a Participant's vested Account balance does not exceed $5,000.00 at the time the Participant or Beneficiary requests a distribution, such Account shall be payable to the Participant or Beneficiary only in the form of a lump sum. Additionally, if a Participant does not make a timely election regarding the distribution of his benefits after receiving the notice required under Code section 402(f), then, provided that the distribution is $1,000.00 or less, the Participant's benefits shall be distributed in a single cash payment as soon as practicable notwithstanding his failure to file an application for distribution.

K.

Lost Participants. If the Participant or his or her Beneficiary cannot be located within four years of the date the Participant's interest under the Plan is first payable, the entire balance in his or her Investment Accounts shall be forfeited; provided, however, that the amount so forfeited shall be reinstated as of the date of the subsequent filing of an application for benefits under the Plan, and payment of the lump sum benefit shall occur no later than 60 days after such application is filed.

L.

Application of Forfeitures. The Amount of Participant's Investment Accounts which is forfeited for a Plan Year in accordance with Sections 5.23.050B.2 and 5.23.070E and K shall be placed in a suspense account and applied as soon as possible to first, restore the accounts of lost Participants who have filed an application for benefits that has been approved by the Administrative Committee, if any, and second, to offset future Matching Contributions to be made by the County in accordance with Section 5.23.050D.

(Ord. 2007-0001 § 1, 2007; Ord. 2005-0037 § 5, 2005; Ord. 2001-0097 § 2 (part), 2001.)

A.

Responsibility for Administration. As Administrator, the Administrative Committee shall be responsible for the administration of the Plan, including but not limited to the preparation and delivery to the Board of Supervisors of Los Angeles County, Participants, Beneficiaries and governmental agencies of all information, descriptions and reports required by applicable law. Each other fiduciary shall have such powers, duties and authorities as shall be specified in the Plan or Trust Agreement.

The Administrative Committee shall also be responsible for contracting with any private firm selected by the Committee to provide services related to the Plan.

B.

Administrative Committee Procedure.

The chairman of the Administrative Committee shall be the Chief Administrative Officer of the County. The chairman of the Administrative Committee shall select a secretary and may select such other officers as are needed from time to time. The members of the Administrative Committee or their designated representatives may authorize one or more of their number or any duly appointed agent or County Employee to carry out any action that may be taken by the Administrative Committee.

The Administrative Committee shall hold meetings at least quarterly or more often at the call of the chairman. A majority of the members of the Administrative Committee shall constitute a quorum and all action taken by the Administrative Committee shall be by majority vote at a meeting at which a quorum is present. The Administrative Committee shall maintain written minutes of its meetings.

C.

Authority.

The Administrative Committee shall interpret where necessary the provisions of the Plan and determine the rights and benefits of Participants and other persons under the Plan. The Administrative Committee may modify any notice period required by the Plan or designate any office to serve as the recipient of any form or notice that has to be filed under the Plan. The Administrative Committee, in case of disputes, may make findings of fact with respect to any matter arising in connection with the administration of the Plan. In addition, the Administrative Committee shall remedy possible ambiguities, inequities or inconsistencies in the Plan and shall correct deficiencies and supply omissions therein. Subject to the provisions of subsection D of this section, such determinations and findings shall be final and conclusive, to the extent permitted by law, as to all interested persons for all purposes of the Plan. The Administrative Committee shall instruct the Trustee or Contractor as to the benefits to be paid hereunder and shall furnish the Trustee or Contractor with any further information reasonably required by it for the purpose of distributing such benefits and making investments in or withdrawals from one or more of the Investment Funds. The Administrative Committee shall also have the authority to contract with one or more private firms for services related to the Plan, consistent with Section 44.7 of the Los Angeles County Charter and Chapter 2.121 of this Code.

The Chief Administrative Officer shall be responsible for recommendations to the Administrative Committee and/or Board of Supervisors on all matters involving budget, liability and fiduciary insurance, Employee Relations, and County policy relating to the Plan. The Chief Administrative Officer shall also be responsible for all Participant contact and services associated with the Plan.

The County Counsel shall provide, or contract for, all legal advice or representation required by the Administrative Committee and/or the County and its officers and Employees in connection with their administration of the Plan.

The Auditor-Controller shall provide or contract for annual audits of the Plan, processing of payroll deductions and County contributions, maintaining appropriate County accounting records, transferring of funds to the Trustee or Investment Managers, and periodic review of the financial integrity of the Plan.

The Treasurer shall be responsible for recommendations to the Administrative Committee on the administration of all contracts with the Trustee, and investment options.

The Administrative Committee may assign additional duties and responsibilities to its members, and may from time to time reassign any of the duties and responsibilities set forth above as it deems appropriate.

Each of the above County officers may discharge any duty required by this chapter through any designated deputy or assistant or contractor.

D.

Revocability of Action. Any action taken by the Administrative Committee with respect to the rights or benefits under the Plan of any Participant or Beneficiary shall be revocable by the Administrative Committee as to payments, distributions or deliveries not theretofore made hereunder pursuant to such action. Appropriate adjustments may be made in future payments or distributions to a Participant or Beneficiary to offset any excess payment or underpayment theretofore made hereunder to such Participant or Beneficiary.

E.

Employment of Assistance. The Administrative Committee may employ such expert communication and enrollment, legal, accounting, investment, trustee investment, or other assistance as it deems necessary or advisable for the proper administration of the Plan and Investment Funds.

F.

Uniform Administration of Plan. All action taken by the Administrative Committee under the Plan shall treat all persons similarly situated in a uniform and consistent manner.

G.

The Investment Funds. The Investment Funds shall be held by the Trustee for the exclusive benefit of the Participants and their Beneficiaries, and, unless a different Investment Manager has been appointed, shall be invested by the Trustee upon such terms and in such property as is provided in the Plan and in the Trust Agreement. Except as otherwise provided by the Administrative Committee, the Trustee will, from time to time, make payments, distributions and deliveries from the Investment Funds as provided in the Plan. The Trustee in its relation to the Plan shall be entitled to all of the rights, privileges, immunities and benefits conferred upon it and shall be subject to all of the duties imposed upon it under the Trust Agreement. The Trust Agreement is hereby incorporated in the Plan by reference.

H.

Payment of Benefits. All payments of benefits provided for by the Plan (less any deductions provided for by the Plan) shall be made solely out of the Investment Funds in accordance with instructions given to the Trustee by the Administrative Committee, and the County shall not be otherwise liable for any benefits payable under the Plan.

I.

Expense Charges to Plan.

With the approval of the Board, expenses incurred as a result of County employees performing the functions defined in this Section 5.23.080 may be charged through the Trustee or reimbursed from Plan assets and paid to the County. The expenses so charged will be allocated to the individual Participants' accounts and shall be reflected on quarterly statements. The annual charges shall not exceed the amount approved by the Board of Supervisors in the County budget, and will only include direct, additional County costs.

Expenses incurred as a result of contractors performing the Plan functions described in this Section 5.23.080, TPA and Trustee fees, and the cost of fiduciary and liability insurance, are limited by the contract or contracts approved by the Administrative Committee or the Board, and will be charged through the Trustee or reimbursed from Plan assets and paid to the County. The expenses, fees and costs so charged will be allocated to the individual Participants' accounts and shall be reflected on quarterly statements.

In the event that the Plan accumulates (a) fees in excess of actual administrative expenses, or (b) unallocated earnings from Plan operations, the Administrative Committee shall allocate excess fees and earnings first by establishing a reserve for contingencies and payment of planned obligations not to exceed one-half of the total annual County fees charged to Participants, and then by allocating any remainder by reducing TPA fees charged to Participants by a method determined by the Administrative Committee. Effective May 29, 2008, any amounts remaining in these contingency and expense reserves shall be allocated per capita to the Accounts of the Participants who are Employees of the County on that date; provided, however, that such allocations shall be treated as Annual Additions and shall not cause the limitations of Section 5.23.050F.2. to be exceeded for any such Participant. To the extent any amounts remain unallocated due to the limits imposed under Section 5.23.050F.2., such unallocated amounts shall continue to be held in a contingency and expense reserve, which reserve shall be transferred to the corresponding reserve under the County of Los Angeles Savings Plan upon the merger of this Plan into the Savings Plan.

J.

Compliance With Laws. The Administrative Committee shall have the duty to make changes in the administration of this Plan which are necessary to comply with federal or State of California laws.

(Ord. 2008-0022 § 2, 2008; Ord. 2001-0097 § 2 (part), 2001.)

A.

Immunities. Except as otherwise provided by the Trust Agreement (1) no fiduciary shall be liable for any action taken or not taken with respect to the Plan or the Trust Agreement except for his own gross negligence or willful misconduct; (2) no fiduciary shall be personally liable upon any contract, agreement or other instrument made or executed by him or in his behalf in the administration of the Plan or the Trust Agreement; (3) no fiduciary shall be liable for the neglect, omission or wrongdoing of another fiduciary nor shall any fiduciary be required to make inquiry into the propriety of any action by another fiduciary; (4) the County and each officer and Employee thereof, the Administrative Committee and each member thereof, and any other person to whom the County or Administrative Committee delegates (or the Plan or Trust Agreement assigns) any

duty with respect to the Plan or the Trust Agreement, may rely and shall be fully protected in acting in good faith upon the advice of counsel, who may be counsel for the County, upon the records of the County, upon the opinion, certificate, valuation, report, recommendation, or determination of the TPA, the Trustee, and Investment Manager, the County Treasurer or of the County Auditor-Controller, or upon any certificate, statement or other representation made by or any information furnished by an Employee, a Participant, a Beneficiary or the Trustee concerning any fact required to be determined under any of the provisions of the Plan; (5) if any responsibility of a fiduciary is allocated to another person, then such fiduciary shall not be responsible for any act or omission of such person in carrying out such responsibility; and (6) no fiduciary shall have the duty, to discharge any duty, function or responsibility which is assigned by the terms of the Plan or Trust Agreement or delegated pursuant to the provisions of subsection B of this section to another person.

B.

Fiduciary Responsibilities. The fiduciaries shall have only such powers, duties, responsibilities and authorities as are specified in the Plan or the Trust Agreement. The County shall have the responsibility for making County Contributions under the plan to the Investment Funds. The Board of Supervisors of the County shall have the authority to amend or terminate the Plan or the Trust Agreement in whole or in part and to appoint, employ and remove the Trustee, any Investment Manager, or any other person that is employed for purposes of the Plan. The Administrative Committee shall be the Plan Administrator and shall have the responsibility and authority to appoint or remove any Investment Manager and to interpret and administer the Plan, subject to the provisions hereof. The Trustee shall have the responsibility and authority for the administration of the Trust Agreement.

(Ord. 2001-0097 § 2 (part), 2001.)

To the extent permitted by law and except as otherwise provided in the Plan, no right or interest of any kind of a Participant or Beneficiary hereunder shall be transferable or assignable by the Participant or Beneficiary, nor shall any such right or interest be subject to alienation, anticipation, encumbrance, garnishment, attachment, execution or levy of any kind, voluntary or involuntary.

(Ord. 2001-0097 § 2 (part), 2001.)

A.

Notwithstanding Section 5.23.100, an Alternate Payee shall have the right to make a claim for any benefits awarded to the Alternate Payee pursuant to a QDRO as provided in this section. If an Alternate Payee is awarded a specified interest in the Accounts of the Participant pursuant to a QDRO, such interest of the Alternate Payee shall be segregated and separately accounted for by the Trustee in the name and for the benefit of the Alternate Payee.

B.

Upon receipt of a domestic relations order, or, if earlier, notice that a domestic relations order may be sought, the Administrative Committee shall suspend distributions from the Participant's Investment Accounts, and shall take steps to ensure that the Participant and each Alternate Payee is aware of the order or proposed order and the suspension of distributions from the Participant's Investment Accounts. Moreover, the Administrative Committee shall determine, within a reasonable period after receipt of such order, whether such order is a QDRO. If the order is determined to be a QDRO, the Alternate Payee's interest under such order shall be segregated and/or distributed in accordance with the QDRO and this Section 5.23.105. If the order is determined not to be a QDRO, and the domestic relations order is not modified as necessary to constitute a QDRO within a reasonable period of time after such determination, the suspension of distributions from the Participant's Investment Accounts shall be discontinued. If an order is not received within a reasonable period of time after the County has been notified that such an order is being sought, the suspension of distributions from the Participant's Investment Accounts shall be discontinued.

C.

Distributions to the Alternate Payee shall be made in accordance with the QDRO provided that the QDRO does not conflict with the Plan's distribution provisions or the provisions of this section. Regardless of whether the Participant is eligible to take a distribution under the Plan, the QDRO may provide for an immediate distribution of the Alternate Payee's interest thereunder to the Alternate Payee. If a QDRO does not provide the form of distribution of benefits payable to an Alternate Payee, the Alternate Payee shall have the right to elect distribution in any form provided under this section. Pursuant to the QDRO or the Alternate Payee's election, the Alternate Payee's interest may be distributed in cash in a lump sum payment or in equal monthly, quarterly or annual installments not extending over more than 15 years.

D.

The Alternate Payee's interest specified in the QDRO shall be segregated and/or distributed from the Participant's Accounts, and the Investment Funds in which such Accounts are invested, on a pro rata basis.

E.

Following the determination that a domestic relations order is a QDRO, and segregation of an Alternate Payee's interest, the Alternate Payee shall have the right to direct the investment of his or her interest in the same manner as provided under Section 5.23.060C with respect to the Participant. The Participant shall continue to have the right to direct the investment of the portion of his or her Accounts that is not awarded to the Alternate Payee pursuant to the QDRO.

F.

Unless the QDRO provides otherwise, an Alternate Payee shall have the right, in the same manner as a Participant, to designate a Beneficiary, who shall receive benefits payable to the Alternate Payee in the event that all of the Alternate Payee's benefits have not been distributed at the time of the Alternate Payee's death. If the Alternate Payee does not designate a Beneficiary, or if the Beneficiary predeceases the Alternate Payee, benefits payable to the Alternate Payee which have not been distributed shall be paid to the Alternate Payee's estate. Any death benefits payable under this section shall be paid in a lump sum as soon as administratively practicable after the Alternate Payee's death, with or without the Beneficiary's request.

(Ord. 2001-0097 § 2 (part), 2001.)

Whenever any Participant entitled to benefits under the Plan shall be under a legal disability or, in the sole judgment of the Administrative Committee, shall otherwise be unable to apply benefits to his own best interest and advantage, the Trustee, at the direction of the Administrative Committee, may make payments to the Participant's legal representative, and the decision of the Administrative Committee shall completely discharge the liability of the Plan, the Administrative Committee, the County and the Trustee with respect to such benefits.

(Ord. 2001-0097 § 2 (part), 2001.)

A Participant by accepting benefits under the Plan does not thereby agree to continue for any period in the employ of the County, and the County by adopting the Plan, making contributions or taking any action with respect to the Plan does not obligate itself to continue the employment of any Participant for any period.

(Ord. 2001-0097 § 2 (part), 2001.)

If any provision of the Plan or the application thereof to any circumstance or person is invalid the remainder of the Plan and the application of such provision to other circumstances or persons shall not be affected thereby.

(Ord. 2001-0097 § 2 (part), 2001.)

A.

Right to Amend or Terminate. Subject to the limitations of Section 5.23.050E, the Board of Supervisors of the County has reserved, and does hereby reserve, the right at any time or times, without the consent of any Participant, Beneficiary or other person, (l) to terminate the Plan, in whole or in part or as to any designated group of Eligible Employees, Participants and their Beneficiaries, or (2) to amend the Plan, in whole or in part. Subject to the provisions of Section 5.23.050B no such termination or amendment shall decrease the amount to be contributed by the County on account of any period prior to the date such termination or amendment is approved by the Board of Supervisors of the County.

B.

Procedure for Termination or Amendment. Any termination or amendment of the Plan pursuant to subsection A of this section shall be expressed in an instrument executed by the County on the order of its Board of Supervisors and filed with the Trustee, and shall become effective as of the date designated in such instrument or, if no date is so designated, on its execution.

C.

Distribution Upon Termination Without Maintenance of a Successor Plan. Effective as of January 1, 2006, if the Plan shall be terminated by the County, subject to the final sentence of subsection A, County Contributions shall cease, and the Investment Funds shall be distributed as if each Participant had then retired pursuant to Section 5.23.070.C at the time of the termination, provided that the County (or any related "employer" as defined in Treasury Regulation section 1.401(k)-6) does not maintain a successor plan within the meaning of Treasury Regulation Section 1.401(k)-1(d)(4).

D.

Vesting on Termination. Notwithstanding any other provision of the Plan, upon the termination or partial termination of the Plan or upon complete discontinuance of contributions under the Plan, the rights of all Employees to benefits accrued to the date of such termination or partial termination or discontinuance, to the extent then funded, or the amounts credited to the Employee's Account shall be fully vested and nonforfeitable.

E.

Failure to Qualify Under Sections 401(a) and 401(k) of the Code. Notwithstanding anything else contained herein, the Plan shall be subject to the issuance by the Internal Revenue Service of either (1) a determination or ruling to the effect that the Plan (as modified by any amendment thereto made for the purpose of securing such determination or ruling) meets the applicable requirements of Section 401(a) and 401(k) of the Code for a qualified governmental plan containing a qualified cash or deferred arrangement, or (2) a determination or ruling with respect to the Plan that is acceptable to the County. If the County does not receive such a determination or ruling within 12 months after it requests it or, if earlier, within 24 months after the Plan is adopted by the County, then, notwithstanding any other provision of the Plan, the County may elect to declare the Plan to be retroactively void by giving written notice to the Trustee that no such Internal Revenue Service determination or ruling has been received.

F.

Temporary Suspension of Plan Provisions. Notwithstanding any provision of the Plan to the contrary, during any conversion period (including but not limited to a change of Trustee, TPA or Investment Funds), in accordance with procedures established by the Administrative Committee, the Administrative Committee may temporarily suspend, in whole or in part, certain provisions of the Plan, which may include, but are not limited to, a Participant's right to change his contribution election, a Participant's right to change his investment election and a Participant's right to borrow or withdraw from his Account or obtain a distribution from his Account.

(Ord. 2008-0022 § 3, 2008; Ord. 2007-0001 § 2, 2007; Ord. 2001-0097 § 2 (part), 2001.)

A.

Rollovers from Other Plans. A Participant in this Plan who receives a distribution from the qualified plan of another employer, within 60 days after he receives the distribution, may transfer ("Rollover") any part or all of the amount distributed from the plan of the other employer to his Tax Deferred Contributions Account in this Plan, provided that a Rollover from the other plan is permitted by the Code and the regulations issued thereunder.

Notwithstanding the foregoing, the Plan shall not accept as a Rollover Contribution any amount distributed from a designated Roth account (as defined in section 402A of the Code) or from a Roth IRA (as defined in section 408A of the Code).

B.

Rollovers From the Plan.

A Participant who is entitled to receive an Eligible Rollover Distribution from the Plan, may direct the Administrative Committee to have the distribution transferred in a lump sum directly to the trustee of one of the following "eligible retirement plans": (a) an individual retirement account under Code Section 408(a); (b) an individual retirement annuity under Code Section 408(b); (c) an annuity plan described in Code Section 403(a); or (d) a defined contribution plan which is qualified under Code Section 401(a) and permits the acceptance of rollover contributions.

In order for a transfer to be made with respect to a Participant under this section, (a) the Participant must designate in writing the eligible retirement plan to receive the transferred amounts; (b) the Participant must timely provide the Administrative Committee with adequate information to enable the Administrative Committee to determine that the transferee plan is an eligible retirement plan described above; (c) the entire amount to be transferred must be an Eligible Rollover Distribution; and (d) the Participant must have received proper notice in accordance with Code Section 402(f).

This Section 5.23.150B is effective for any distribution made after December 31, 1992.

C.

Transfers between County 401(k) Plans.

Transfers to this Plan from the County Savings Plan. A Participant who is qualified to make Tax Deferred Contributions to this Plan may elect to transfer to this Plan his membership and the balance in his accounts under the County Savings Plan, provided that:

a.

Investments in the Participant's "Account" (as defined in the County Savings Plan)—other than any investment in the "Participant Loan Fund" (as defined in the County Savings Plan)—under the County Savings Plan shall be liquidated and then the cash shall be transferred to this Plan within a commercially reasonable period of time, unless the Administrative Committee otherwise makes arrangements for an in-kind transfer of assets. As soon as practicable following the transfer, the transferred cash shall be invested in the same Investment Funds (or a similar Investment Fund if the identical fund is not an available investment alternative) from which those amounts were liquidated and in the same proportions as they were invested under the County Savings Plan;

b.

Any balance owing and obligations of a County Savings Plan loan shall become the balance owing and obligations due to this Plan; and

c.

Vesting credit and benefit distribution rights accrued in the County Savings Plan shall be transferred to this Plan.

Transfers from this Plan to the County Savings Plan. A Participant who is qualified to make Tax Deferred Contributions (as defined in the County Savings Plan) to the County Savings Plan may elect to transfer to the County Savings Plan his membership and the balance in his accounts under this Plan, provided that:

a.

Investments in the Participant's Account—other than any investment in the Participant Loan Fund—under this Plan shall be liquidated and then the cash shall be transferred to the County Savings Plan within a commercially reasonable period of time, unless the Administrative Committee otherwise makes arrangements for the in-kind transfer of assets. As soon as practicable following the transfer, the transferred cash shall be invested in the same Investment Funds (as defined in the County Savings Plan)—or a similar Investment Fund (if the identical fund is not an available investment alternative) from which those amounts were liquidated and in the same proportions as they were invested under this Plan;

b.

Any balance owing and obligations of a loan under this Plan shall become the balance owing and obligations due to the County Savings Plan; and

c.

Vesting credit and benefit distribution rights accrued in this Plan shall be transferred to the County Savings Plan.

D.

Trustee-to-Trustee Transfers to Purchase Permissive Service Credit and as Repayment of Contributions and Interest.

Notwithstanding any provision of Section 5.23.070 to the contrary, effective on or after September 1, 2007, a Participant may direct the Administrative Committee to make a direct trustee-to-trustee transfer of all or part of the Participant's Accounts, to the extent vested, to a defined benefit governmental plan (as defined in Code section 414(d)) in California if such transfer is (a) for the purchase of service or retirement credit that may be purchased under the terms of such defined benefit governmental plan, or (b) a repayment of contributions (including interest thereon) that may be made under the terms of such defined benefit governmental plan with respect to an amount previously refunded upon a forfeiture of service credit under the plan or under another governmental plan maintained by a State or local government employer.

Unless the Participant directs otherwise, transfers shall be made pro rata from each subaccount within the Participant's Account and from each Investment Fund in which those subaccounts are invested.

The Administrative Committee may take any action and may require the Participant to provide any information or documentation necessary to permit the Administrative Committee to satisfy any obligation imposed on the Administrative Committee by the Code and the regulations thereunder to make a reasonable determination that the trustee-to-trustee transfer satisfies the requirements of the Code and the terms of the Plan and will be accepted by the transferee plan.

E.

Certain Prior Trustee-to-Trustee Transfers to Purchase Permissive Service Credit and as Repayment of Contributions and Interest.

Effective on or after January 1, 1998, an Identified Participant may direct, and will be treated as having directed, the Administrative Committee to make a direct trustee-to-trustee transfer of his or her Transferred Benefits to a defined benefit governmental plan (as defined in Code section 414(d)) in California if such transfer is (a) for the purchase of service or retirement credit that may be purchased under the terms of such defined benefit governmental plan, or (b) a repayment of contributions (including interest thereon) that may be made under the terms of such defined benefit governmental plan with respect to an amount previously refunded upon a forfeiture of service credit under the plan or under another governmental plan maintained by a State or local government employer.

For purposes of this Section 5.23.150.E only:

a.

An "Identified Participant," is a Participant identified by the TPA as having rolled over to a defined benefit governmental plan funds that were not eligible for distribution or withdrawal as provided under Section 5.23.070.

b.

An Identified Participant's "Transferred Benefits" is the portion of that Participant's Account that was not eligible for distribution or withdrawal under Section 5.23.070, but which was nevertheless rolled over to a defined benefit governmental plan.

The Administrative Committee may take any action and may require the Participant to provide any information or documentation necessary to permit the Administrative Committee to satisfy any obligation imposed on the Administrative Committee by the Code and the regulations thereunder to make a reasonable determination that the trustee-to-trustee transfer satisfies the requirements of the Code and the terms of the Plan and will be accepted by the transferee plan.

(Ord. 2008-0004 § 3, 2008; Ord. 2007-0084 § 2, 2007; Ord. 2007-0001 § 3, 2007; Ord. 2001-0097 § 2 (part), 2001.)

Effective on and after December 12, 1994, and notwithstanding any provisions of this Plan to the contrary, contributions, benefits and service credit with respect to "qualified military service" will be provided in accordance with Section 414(u) of the Code. "Qualified military service" means any service in the uniformed services (as defined in Chapter 43 of Title 38 of the United States Code) by any individual if such individual is entitled to reemployment rights under such chapter with respect to such service.

(Ord. 2001-0097 § 2 (part), 2001.)