[Adopted 4-3-2003 by Ord. No. 277]
The Township of Forks hereby adopts an eligible deferred compensation plan for all of its employees pursuant to Section 457 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 457). The terms of the plan are as set forth in the Section 457 Deferred Compensation Plan Adoption and Services Agreement between the Township and the Variable Annuity Life Insurance Company (VALIC). The Adoption and Services Agreement (the "plan") includes the VALIC Administrative Services Addendum and the Plan Document Addendum.
No later than March 1 of each year, the Township Manager shall submit to the Board of Supervisors a report which reviews the performance of the service provider for the purpose of making certain that the service provider continues to meet all of the standards and criteria established by the plan and any rules and regulations established by the Township.
The plan shall be administered in compliance with Section 457 and any other provisions of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 457) and applicable to the plans.
Any income deferred under the plan shall continue to be included as regular compensation for computing retirement and benefits earned by the Township employee, but any sums deferred shall not be included in the computation of any federal income taxes to be withheld.
All amounts deferred under the plan shall constitute taxable income for purposes of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971,"[1] and shall constitute taxable income for state and local earned income taxes.
[1]
Editor's Note: See 72 P.S. § 7101 et seq.
The Township shall not be responsible for any investment loss incurred in the program, or for the failure of any investment to earn any specific or expected return or to earn as much as any other investment opportunity, whether or not such other investment opportunity was offered to participants in the program.
The Township may at any time amend the plan or terminate the plan and distribute the participant's accounts in conformity with the Internal Revenue Code and applicable regulations; provided, however, that such amendment or termination shall not impair the rights of participants or their beneficiaries with respect to any compensation deferred before the date of the amendment or termination of this plan, except as may be required to maintain the tax status of the plan under the Internal Revenue Code.