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Home My WebLink AboutFS 2011-12-06 COMPLETE AGENDA PACKETCity of Tukwila Distribution: K. Hougardy Finance and Safety 3. Hernanez D. Robertson Committee A. Ekberg Mayor Haggerton D. Cline O Kathy Hougardy, Chair P. McCarthy O Joan Hernandez S. Brown J. Ferrer- SantaInes O Dennis Robertson C.0'Flaherty S. Kerslake K. Matej AGENDA TUESDAY, DECEMBER 6 2011 CONFERENCE ROOM #3, 5:00 PM Item Recommended Action Page 1. PRESENTATION(S) 2. BUSINESS AGENDA a. A resolution regarding the non represented employee wage and benefit package. Stephanie Brown, Human Resources Director b. A resolution adopting the Deferred Compensation Plan Peggy McCarthy, Interim Finance Director c. Revenue Generating Regulatory License (RGRL) audit. Jennifer Ferrer -Santa Ines, Senior Fiscal Coordinator d. Miscellaneous revenue report. Peggy McCarthy, Interim Finance Director 3. ANNOUNCEMENTS 4. MISCELLANEOUS a. Forward to 12/12 C.O.W. Pg.1 and 12/12 Special Mtg. b. Forward to 12/12 C.O.W. Pg.23 and 12/12 Special Mtg. c. Information only. Pg.71 d. Information only. Pg.75 Next Scheduled Meeting: Tuesday, December 20, 2011 (Tentative) S The City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206 433 -1800 or (tukclerk @tukwilawa.gov) for assistance. x City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Stephanie Brown, Human Resources Director DATE: November 30, 2011 SUBJECT: 2012 Non Represented Wages and Benefits ISSUE: Request for additional information from the 2011 Non Represented wage and benefit market study for 2012 wages. BACKGROUND: At the October 18, meeting of the Finance and Safety Committee, the committee requested additional information from staff regarding the 2011 non represented wage and benefit market study. Due to the amount of material provided, the committee at the November 22, Finance and Safety Committee meeting requested additional time to review the information, and that it is brought forward to the December 6, meeting for discussion. The additional information being provided for discussion at the December 6, meeting is as follows: 1. The 2011 Non Represented Wage data from the AWC Salary Survey. 2. Revised COLA Adjustments spreadsheet for Represented and Non Represented employees for 2008 -2013. 3. 2008 -2012 wage adjustments spreadsheet for various cities that were used as comparisons in the non represented wage and benefit market study. RECOMMENDATION The Council is being asked to consider this item at the December 12, 2011 Committee of the Whole meeting and Special meeting to follow that same evening. ATTACHMENTS Association of Washington Cities Salary Survey Tukwila Cola Adjustments Comparable Market Study Informational Memorandum from FS meeting dated 11/16/11 with following attachments: -Draft Resolution Attachment A: 2012 Wage Schedule Attachment B: 2012 Benefits Attachment C: 2012 Longevity Pay -Wage Adjustment table for represented and non represented employees. x W 2011 Wage Data from AWC Salary Survey CITY City Admin. PW Director Fire Chief Police Chief HR Director Fin. Dir P &R Dir. DCD A/C Fire A/C Police Auburn 11874 11279 11874 11874 11874 11874 10719 Bothell 14072 11311 12181 12181 11311 11311 11311 11035 11035 Kent 13604 12587 12587 11986 11986 12587 11986 11151 Kirkland 14500 11760 11760 11760 11510 12091 11510 11510 10464 Lynnwood 12051 12222 12222 10858 12051 12051 10858 10873 10544 Mountlake Terrace 10715 9711 10099 9711 10099 9711 9188 Puyallup 12667 10547 10547 10547 10547 10547 10547 9432 Redmond 12491 12246 12246 11276 12491 11667 11352 10697 10646 Renton 13405 12152 12152 12152 12152 12152 9261 9261 11009 11009 SeaTac 12007 11457 11457 10639 11457 10905 11457 9403 Tukwila 12327 11178 11178 11178 10801 10801 10801 10801 9807 9807 Average 12995.71 11594.10 12003.00 11674.78 11350.33 11567.10 11166.78 10986.70 10580.17 10465.50 (Excludes Tukwila) Dollar Difference - 668.7142857 -416.1 - 825.00 - 496.78 - 549.33 - 766.10 - 365.78 - 185.70 - 773.17 - 658.50 Percentage Difference -5.42% -3.72% -7.38% -4.44% -5.09% -7.09% -3.39% - 1.72% -7.88% -6.71% 2011 Non -Rep Salary Study Data compiled 7/27/11 KG Revised: 11/21/11 City of Tukwila Non - Represented: Bands A11 -D61 Bands D62 -F102 Teamsters Police Non - Commissioned (USW) Police Commanders (USW) Police Commissioned (Guild) Fire 2008 COLA Adjustments 2008 -2013 Represented and Non - Represented Positions 2009 2010 2011 2012 2013 Non - Represented Wages 2008 wages representa a COLA adjustment based on 2007 CPI formula for Bands A11 -D61. 2008 wages representa a market adjustment based on 2007 market analysis for Bands A62 -F102. 2009 wages represent a COLA adjustment based on 2008 CPI formula. 2009 market study is for 2010 wage adjustment. 2011 wages represent a COLA adjustment based on 2010 CPI formula. 2011 market study is for 2012 wage adjustment. Labor Contracts Duration Tukwila Police Guild IAFF Local 2088 Teamsters Local 763 USW Police Commanders USW Police Non - Commissioned 2008 -2010 2009 -2011 2009 -2013 2011 -2013 2009 -2012 3.42% 4.50% Market Average 4.14% 0 2.90% to 10.10% 450% 0 0 3.00% 4.25% 3.375% 3.375% 90% CPI -W Min 2.5% Max 4.50% 90% CPI -W Min 2.5% Max 4.50% 2.97% 4.25% 3.25% 3.25% 90% CPI -W Min 3% Max 4.50% 90% CPI -W Min 3% Max 4.75% N/A N/A N/A 11.60 °l° 90% CPI -W Min 25% Max 3.5% 90% CPI -W 3.50% 3.50% 3.50% Currently in contract negotiations 3.97% 4.20% 4.00% 0 Currently in contract negotiations Non - Represented Wages 2008 wages representa a COLA adjustment based on 2007 CPI formula for Bands A11 -D61. 2008 wages representa a market adjustment based on 2007 market analysis for Bands A62 -F102. 2009 wages represent a COLA adjustment based on 2008 CPI formula. 2009 market study is for 2010 wage adjustment. 2011 wages represent a COLA adjustment based on 2010 CPI formula. 2011 market study is for 2012 wage adjustment. Labor Contracts Duration Tukwila Police Guild IAFF Local 2088 Teamsters Local 763 USW Police Commanders USW Police Non - Commissioned 2008 -2010 2009 -2011 2009 -2013 2011 -2013 2009 -2012 2009 -2012 Wage Adjustments Comparable Market Study Cities CITY 2009 2010 2011 2012 Auburn normal CBA increases 3 4% 0% COLA for Teams, 40 -hour furlough; Police 4% ° 0 % COLA for Teams 40 hour furlough All 2012 pay schedules remain the same as 2011 Bothell AF 6.2 %; IAFF 6.2 %; NR 6.2 %; PD 7.2% 0% COLA all groups 2% market adjustment for IAFF; 0% COLA all others Kirkland All groups 3.4% reinstated from 2010 decrease; IAFF $236 per month reinstated from 2010 decrease. Kent AF, Teams, NR took deferred COLA (2.8 %, then 2.72 %) 0% COLA all groups 0% COLA all groups CPI at 3.7 %- -will negotiate at the table Lynnwood PD Management 7.5 %; PD 5.5 %; IAFF 3.5 %; Teams 5.58 %; AF 0 %; NR 5.58% All PD groups 4.5 %; Fire 3 %; all others 0% All PD 4.5 %; all others 0% IAFF, Teams, AF in negotiations. All others 0% Redmond RCHEA, AF, PD Support, FD Support, NR 3.59 %; Fire 6 %; PD 6.2% RCHEA, AF, PD Support, Fire Support, NR .97 %; Fire 2 %, PD 0% 1% COLA all groups 2% COLA all groups Renton 5.5% COLA for all groups; varying concessions by all groups 0% COLA all groups 1% COLA 2.5% COLA All groups SeaTac normal CBA increases 0% COLA AF and NR (40 hours furlough), IAFF not settled until 12/1 -- 2.38% increase 0% COLA 1st half for IAFF, 1.4% increase 7/1/11, 2% increase AF (would not agree to concessions, laid off 6 employees). 0% COLA NR (40 furlough hours). City does not plan to ask for concessions. IAFF CBA has 90% CPI. AF in negotiations. Tukwila See "COLA Adjustments" Spreadsheet for 2008 -2013 Acronym Legend: AF= AFSCME (American Federation of State, County, and Municipal Employees) Teams = TEAMSTERS PD= Police Officers' Union /Guild PD Non - Comm = Police Non - Commissioned (Civilian) employees NR= Non - Represented Employees IAFF = Firefighters RCHEA= Redmond City Hall Employees Association CBA = Collective Bargaining Agreement 01 8/3/11 x City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Stephanie Brown, Human Resources Director DATE: November 16, 2011 SUBJECT: 2012 Non Represented Wages At the October 18, 2011 meeting of the Finance and Safety Committee, the committee requested additional information from staff regarding the analysis conducted on the non represented wage and benefit study. This information will be brought back for discussion at the November 22, 2011 Finance and Safety Committee meeting. ISSUE 2012 Non Represented Wage Schedule analysis based on external comparables and internal equity. BACKGROUND In alignment with Resolution No. 1537, establishina a Non Represented (NR) Employees' Compensation Plan, a wage study has been conducted for calendar year 2012. The resolution requires that a market analysis be done every other year for the upcoming year for Non Represented positions. The current analysis has been conducted based on information in the Association of Washington Cities (AWC) 2011 Salary and Benefit Study. As in the past, a comparison was done of external comparables (cities) and internal equity (union pay scales). The following comparable cities were used for this study: Comnarables Auburn Bothell Puyallup Kent Kirkland Sea -Tac Lynnwood Mountlake Terrace Redmond Renton DISCUSSION In 2009, a non represented market study reflected that relative to the market, the non represented employees were falling behind. Fairly soon after the study, the economy took a major hit and with it a shift in how wages and benefits were considered by the cities going into 2010. Upon presenting the wage study to the City Council, a decision 7 INFORMATIONAL MEMO Page 2 was made that in 2010 non represented positions banded at levels Al 1 -D61 would receive an average wage increase of 4.14% based on the 2009 market study, and positions banded D62-Fl 02 would receive no market increase, and their wages have been frozen at the 2009 salary level since that time. The strategy to address the City budget shortfall in 2010 was to request our represented and non represented employees take reductions in wages and /or benefits for 2011. As a result, our Fire Union and Non Represented employees did not receive COLA increases this year, and the remaining represented employees (Teamsters' and USW Non Commissioned) received their negotiated cost of living adjustments. The Police Guild contract expired in December 2010. Attached to this memorandum is a table that shows the wage and cost of living adjustments (COLA) for all groups since 2009. Internal equity continues to create a wage gap as the represented groups receive negotiated cost of living adjustments. In looking at the internal equity issue, the non represented top step wage information is compared to the represented top step for 2011, which shows the represented wages have increased 3% to 6 This is also becoming apparent in upper level management positions where first level supervisors are earning a higher wage then Assistant or Department Directors whose wages are at 2009 salary levels. In light of the above, it is important to keep the non represented wages consistently moving in alignment with the market and with represented wages. In addition, we must remain competitive in salary and benefits to retain existing staff and attract applicants to positions at the City. There has been some improvement in the wages of our competing jurisdictions as the market study has shown. We also are seeing a resurgence of competition for upper level management positions. If we do not bring our salaries in alignment with the market, we will be faced with the possibility of losing key upper level management positions, which will have an effect on our succession plans into the future. The Decision Band Methodology (DBM) and regression line analysis have been completed for the non represented market study using the data from the 2011 AWC salary study in determining the "best line of match The analysis shows that positions banded at D62 -F102 are below market, and positions banded at A11 -D61 are at market. RECOMMENDATIONS The following Non Represented employee wage increase for 2012 is presented to the Mayor and Council for consideration: Approve the 2012 Non Represented salary schedule, effective January 1, 2012 providing a market wage adjustment as determined by regression analysis (see attached draft resolution), for positions banded D62 -F102, which provides for external comparability and internal equity; and provide a three percent (3 increase to those at the A, B, C, and D61 levels (generally technical and staff INFORMATIONAL MEMO Page 3 support levels), in order to maintain internal equity for these positions, which have more internal similarity with the represented positions. The estimated cost to implement this increase for wages is $162,390. The market adjustment, and internal three percent (3% eauitv increase to the overall non represented salary schedule is $4,071,042,which is below the 2012 budget of $4,161.988. The Benefit change for 2012 for non represented employees is to reduce the amount the City funds for medical contributions from 10% down to 8 (See attached benefit summary sheet) This change is reflective of the City Council's interest in aligning with our comparable jurisdictions in employee cost sharing for their medical insurance. The City Council is being asked to consider this change along with the adjustments to the wages for non represented employees. MAYOR'S RECOMMENDATION: The Mayor has reviewed the wage scenario above. He recognizes the current budget concerns however, he realizes the need to keep in alignment with the external market, decrease the internal equity compression, and remain competitive for salaries with our comparable jurisdictions for upper management level positions. Therefore, he recommends the City Council approve the 2012 Non Represented salary and benefits effective January 1, 2012, which provides for a market adjustment as determined by the regression analysis for positions banded D62 -F102, and provide a three (3 increase to those at A, B, C, and D61 levels in order to maintain internal equity for these positions, which have internal similarity with the represented positions. The Council is being asked to consider this issue at the November 28, 2011 Committee of the Whole meeting, and December 5, 2011, Regular meeting. ATTACHMENTS -Draft Resolution Attachment A: 2012 Wage Schedule Attachment B: 2012 Benefits Attachment C: 2012 Longevity Pay -Wage Adjustment table for represented and non represented employees. 9 lu 1 Aw A A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, UPDATING AND CLARIFYING THE NON REPRESENTED EMPLOYEES' COMPENSATION AND ADOPTING THE NON REPRESENTED SALARY SCHEDULE AND BENEFITS SUMMARY, EFFECTIVE JANUARY 1, 2012. WHEREAS, the Tukwila City Council has conducted a review of the non represented employees' compensation system that was originally implemented in January 1998; and WHEREAS, the City Council recognizes that current economic conditions and forecasts are a consideration in actions that deal with the compensation of employees; and WHEREAS, the City Council has made a determination to review the non represented compensation for even numbered years and provide cost -of- living allowances (COLAs) in odd numbered years; and WHEREAS, a compensation study has been conducted and the recommended non represented wage schedule and benefit information has been prepared for implementation on January 1, 2012; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The following statements have been used for the purpose of adopting the non represented employees' wages for 2012 and consideration for future years. A. The following basic plan elements remain the same: 1. Decision Band Methodology (DBM) for creating classifications. 2. Market analysis using comparable jurisdictions' top -step wages. 3. Data was gathered through use of the "Association of Washington Cities (AWC) Salary and Benefits Survey a publication that garners wide participation of our comparables. W: \Word Process ing \Resolutions \N on-Re presented Employees Compensation -2012 10 -11 -11 sB:bjs Page 1 of 3 11 4. Regression line analysis to establish the Control Point for each DBM rating. (Regression Line Analysis provided by Fox Lawson Associates, LLC, based on Human Resources Department acquired market data). 5. Steps below the Control Point (Wage Schedule Top Step) are automatic as individuals move through the system. 6. Ranges for all bands (A11 -F102) of the Decision Band Methodology have been established based on the outcome of the regression analysis (line of best fit) in creating the 2012 wage schedule. 7. Ranges A11 -D61 wages for 2012 will receive a 3% wage adjustment on January 1, 2012 for positions in these Decision Bands. 8. Ranges D62 -F102 wages for 2012 are based on the outcome of the trend line analysis. Wage increases for these Decision Bands shall be as shown on the attached Salary Schedule, "Attachment A." 9. A "market adjustment" is normally applied to a position when the wage survey results establish a new control point, and internal compression exists within the career ladder, or where there is difficulty in recruiting and /or retaining qualified employees. In order to assure that the integrity of the Decision Band Method is maintained, while recognizing a wage gap based on market conditions for a specific position, the "market adjustments" may be made in future years. When implemented, the "market adjustment" shall be calculated by taking the difference between the newly established control point and the market average wage for the position, and applying it on top of the established salary range for the position. This market adjustment shall be reviewed every two years from the time it is implemented (if implemented) as part of the salary study and may be eliminated or changed based on the results of the survey. B. The non represented salary schedule for 2012 provides an average market trend increase as a whole, at the top step (control point). Individual DBM increases may vary on the wage schedule based on where they fit in the overall regression analysis that develops the market trend line. This analysis brings the wage schedule in alignment with external comparables. C. The City shall continue to conduct in -house market analysis of the non represented compensation system during odd numbered years, using outside assistance on regression line analysis calculations as needed. The results of the analysis will be considered for implementation on January 1 of the following even numbered year. D. A COLA increase shall be considered for application each January 1 during odd numbered years, based on the Seattle- Tacoma Bremerton Consumer Price Index (CPI -W) Average (first half of 2011 to first half of 2012). E. The Decision Band method of job evaluation will be used to establish classifications and the relative internal value and relationship of non represented jobs within the City of Tukwila. W: \Word Processing \Resolutions \Non Represented Employees Compensation -2012 10 -11 -11 SB:bjs Page 2 of 3 12 F. Merit will continue to be eliminated from the plan at this time and may be reconsidered as a plan element in subsequent years. G. Step increases from the minimum to the control point for all positions shall be given annually on the employee's performance review date. There will be no step increases for employees at or above the control point. Section 2. Non represented salary schedule, employee benefits summary and longevity pay plan. A. The Non Represented Salary Schedule, "Attachment A" hereto, shall be approved, effective January 1, 2012. B. The Non Represented Employee Benefits Summary, "Attachment B" hereto, shall be approved, effective January 1, 2012. C. The Longevity Pay Plan for Non Represented Employees, "Attachment C" hereto, shall be approved, effective January 1, 2012. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 1 2011. ATTEST /AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney Attachments: Allan Ekberg, Council President Filed with the City Clerk: Passed by the City Council: Resolution Number: Attachment A, Non Represented Salary Schedule 2012 Attachment B, Non Represented Employee Benefits Summary 2012 Attachment C, Longevity Pay Plan for Non Represented Employees 2012 W: \Word Processing \Resolutions \Non Represented Employees Compensation -2012 10 -11 -11 SB:bjs Page 3 of 3 4 14 ATTACHMENT A City of Tukwila Non Represented Salary Schedule 2012 Classification Tit Job Title Range Administrative Support Technician Administrative Support Technician Al2 Office Technician Human Resources Technician B21 Office Specialist Administrative Secretary B22 Civil Service Secretary/ Examiner Administrative Assistant Deputy City Clerk B23 Executive Secretary Administrative Secretary I Council Administrative Assistant i Program Coordinator Systems Administrator C41 Human Resources Assistant Management Coordinator City Clerk C42 Court Administrator Police Records Manager Management Analyst Legislative Analyst Human Resources Analyst Public Works Analyst Program Administrator Internal Operations Manager C43 Public Works Coordinator Emergency Manager Program Manager Assistant City Administrator D61 Senior Engineer Building Official IT Manager Administrative Manager Maintenance Operations Manager D662 W: \Word Processing \Resolutions \Non Represented Employees Compensation -2012 Attachments SB:bjs 15 ATTACHMENT A (continued) Non Represented Salary Schedule 2012 (continued) Assistant Director Department Manager Department Administrator Department Head Department Director City Administrator Human Resources Director DCD Director Finance Director IT Director Parks Recreation Director Fire Chief Police Chief Public Works Director D63 D72 E81 E83 E91 City Administrator LF102 W: \Word Processing \Resolutions \Non Represented Employees Compensation -2012 Attachments SB:bjs Deputy Community Development Director Deputy Finance Director Deputy Public Works Director Deputy Parks Recreation Director Assistant Fire Chief Assistant Police Chief City Engineer Economic Development Administrator 16 ATTACHMENT A (continued) 2012 Non Represented Salary Structure (Monthly) DBM (Minimum) Rating Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 All 3,6411 3,7551 3,8701 3,9831 4,0961 1 Al2 3,9291 4,0551 4,1801 4,3021 4,4251 1 A13 1 4,2281 4,3581 4,4911 4,6231 4,7531 B21 1 4,4161 4,581' 4,7491 4,9131 5,0831 B22 4,7031 4,8791 5,0561 5,2331 5,4121 B23 4,9871 5,175+ 5,3621 5,5501 5,7401 B31 5,2341 5,4641 5,6931 5,9211 6,1511 B32 5,6521 5,9001 6,1481 6,3961 6,6451 C41 1 5,8791 6,1131 6,3481 6,5851 6,8211 7,0561 C42 1 6,1491 6,3971 6,6421 6,8891 7,1361 7,3841 C43 1 6,4231 6,6811 6,9391 7,1961 7,4521 7,7131 C51 1 6,6321 6,9291 7,2281 7,5261 7,8231 8,1251 C52 7,0881 7,4081 7,7271 8,0461 8,3671 8,6181 D61 1 7,2231 7,5851 7,9461 8,3091 8,6711 9,0291 D62 1 7,2781 7,6401 8,0041 8,3671 8,7321 9,0941 D63 1 7,5331 7,9101 8,2871 8,6641 9,0411 9,4151 D71 1 7,7061 8,1271 8,5501 8,9731 9,3941 9,8191 D72 1 8,0871 8,5281 8,9711 9,4121 9,8551 10,2971 E81 1 8,1721 8,5811 8,9901 9,3961 9,8351 10,2761 10,697 E82 1 8,4721 8,8981 9,3221 9,7461 10,1721 10,5981 11,021 E83 I 8,7211 9,1591 9,5941 10,0321 10,4661 10,9031 11,341 E91 1 9,0251 9,4771 9,9291 10,3811 10,8331 11,2851 11,737 E92 1 9,3891 9,8611 10,3321 10,8011 11,2721 11,7431 12,212 F101 1 9,7661 10,2541 10,7431 11,2331 11,7231 12,2091 12,699 F102 1 10,1331 10,6401 11,1481 11,6561 12,1631 12,6701 13,178 2012 rate adjustments include 3% forA11 -D61, 5% forD62 -E91, 4.9% forE92 -F101 and 6.9% forF102. 2012 salary increases 2012 nonrep Salaries Partial 10/12/2011 17 im ATTACHMENT B Non Represented Employee Benefits Summary 2012 Social Securitv (FICA): Social Security benefits shall be provided as contained in Section 2.52.010 of the Tukwila Municipal Code (TMC). State -Wide Employee Retirement Svstem (PERS): Retirement shall be provided as contained in Section 2.52.020 of the TMC. Holidays: Holidays shall be provided as contained in Section 2.52.030 of the TMC. Regular part -time employees shall be entitled to benefits on a pro -rata basis. Sick Leave: Sick leave shall be provided as contained in Section 2.52.040 of the TMC. Regular part -time employees shall be entitled to benefits on a pro -rata basis. Medical Insurance: The City shall pay 100% of the 2012 premium for regular full -time employees and their dependents under the City of Tukwila self insured medical dental plan. Premium increases above 8% per year shall result in a modified plan document to cover the additional cost above 8 or a premium shall be implemented for the difference, at the City's discretion. The City reserves the right to select all medical plans and providers. Regular part time employees shall be entitled to benefits on a pro -rata basis. Employees who choose coverage under the Group Health Cooperative plan shall pay the difference between the City of Tukwila plan full family rate and the rate charged to them by Group Health. Dental Insurance: The City shall provide 100% of the 2012 premium for regular full -time employees and all dependents under the City of Tukwila self insured medical/ dental plan for dental coverage. Regular part -time employees shall be entitled to the same benefits on a pro rata basis. Life Insurance: For regular full -time employees, the City shall pay the premium for Plan C (Multiple of annual earnings) or similar group life and accidental death and dismemberment insurance policy. Said plan shall be at 100% of annual earnings rounded up to the next $1,000. Regular part -time employees that work at least 20 hours per week shall be entitled to benefits on a pro -rata basis (per insurance program requirements). Vision/Optical: To non represented regular full -time employees and their dependents at the rate of $200 per person, to a maximum of $400 per family unit each year. Regular part -time employees and their dependents shall be entitled to benefits on a pro -rata basis. Disability Insurance: The City shall provide 100% of the premium for regular full -time employees for a comprehensive long -term disability policy. Regular part -time employees that work at least 20 hours per week shall be entitled to benefits on a pro -rata basis (per insurance program requirements). Health Reimbursement ArranizementNoluntary Emplovee Benefit Association (HRA/ VEBA): VEBA benefits shall be provided as contained in Resolution No. 1445 and as amended. (continued...) W: \Word Processing \Resolutions \Non Represented Employees Compensation -2012 Attachments SB:bjs 19 ATTACHMENT B (continued) Non Represented Employee Benefits Summary 2012 Vacation: Following the sixth month of continuous employment, annual vacation leave of six full days (each day is calculated at eight hours, regardless of schedule worked) shall be granted. Thereafter, an additional day of annual leave shall accrue each month, up to a total of 12 days. Three additional days of annual leave shall be granted on the employee's anniversary date after the third, fourth and fifth years. After six years, the employee shall be granted one day per year additional annual leave to a maximum of 24 days per year. The maximum number of accrued hours is 384 or 48 days. Years of Service Vacation Accrual Years of Service Vacation Accrual 0 -1 years 12 days* 10 years 19 days 1 -2 years 12 days 11 years 20 days 3 -6 years 15 days 12 years 21 days 7 years 16 days 13 years 22 days 8 years 17 days 14 years 23 days 9 years 18 days 15 years 24 days (maximum) *Six full days will be granted following the sixth month of continuous employment. (Days accrue at eight hours, regardless of schedule worked.) Regular part -time employees shall be entitled to benefits on a pro -rata basis. Uniform Allowance: An annual uniform allowance of $350 shall be granted to the following employees: Fire Chief, Assistant Fire Chief, Police Chief, Assistant Police Chief, and Records Manager. ATTACHMENT C Longevity Pay Plan for Non Represented Employees 2012 The monthly longevity flat rates shall be as follows for regular full -time employees after the completion of the number of years of full time employment with the City set forth below. Regular part -time employees shall receive longevity on a pro -rata basis. Completion of 5 years $75 Completion of 10 years 100 Completion of 15 years 125 Completion of 20 years 150 Completion of 25 years 175 Completion of 30 years 200 W: \Word Processing \Resolutions \Non Represented Employees Compensation -2012 Attachments SB:bjs 20 City of Tukwila COLA Adjustments 2009 -2012 Represented and Non - Represented Positions Non - Represented: Bands A11 -D61 Bands D62 -F102 Teamsters Police Non - Commissioned (USW) Police Commanders (USW) Police Commissioned (Guild) Fire 2009 2010 2011 2012 Non - Represented Wages 2009 wages represent a COLA adjustment based on 2008 CPI formula. 2009 market study is for 2010 wage adjustment. 2011 wages represent a COLA adjustment based on 2010 CPI formula. 2011 market study is for 2012 wage adjustment. 4.50% Market Average 4.14% Wages Frozen 4.50% Wages Frozen Wages Frozen 4/5% 3.375% 3.375% 90% CPI -W Min 2.5% Max 4.5% 4.25% 3.25% 3.25% 90% CPI -W Min 3% Max 4.5% Same as Non -Rep Same as Non -Rep Bands D62 -F102 Market Adjustment 90% CPI -W Min 2.5% Max 3.5% 3.50% 3.50% Currently in contract negotiations 4/0% 4.00% Wages frozen as a wage concession Currently in contract negotiations Non - Represented Wages 2009 wages represent a COLA adjustment based on 2008 CPI formula. 2009 market study is for 2010 wage adjustment. 2011 wages represent a COLA adjustment based on 2010 CPI formula. 2011 market study is for 2012 wage adjustment. 22 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Craig Zellerhoff, Fiscal Coordinator Payroll and Accounts Payable DATE: November 18, 2011 SUBJECT: Deferred Compensation Plan Document ISSUE In order for the City of Tukwila deferred compensation plan to be considered in compliance with the Internal Revenue Code section 457(b), and applicable regulations, a governmental 457(b) plan must adopt a Pension Protection Act (PPA) compliant plan no later than December 31, 2011. BACKGROUND Due to legislative changes, the City of Tukwila is required to update the Deferred Compensation Plan Document. The Plan Document (Attached) has been updated for the following legislative changes: Pension Plan Act of 2006 (PPA) Heroes Earnings Assistance Act of 2008 (HEART) Worker, Retiree, and Employer Recovery Act of 2008 (WRERA) Plan Document changes include the ability to offer Roth IRA deductions for plan participants and allows for withdrawals due to qualified military leave service. DISCUSSION The Deferred Compensation Plan is a valuable tool for plan participants (employees) to save for retirement. The plan is a voluntary participation plan and is at no additional cost to the city. RECOMMENDATION The Council is being asked to consider this item at the December 12, 2011 Committee of the Whole meeting and Special Meeting to follow that same evening. ATTACHMENTS Resolution in draft form Updated Deferred Compensation Plan Document 23 24 [1� A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, TO ADOPT THE AMENDED CITY OF TUKWILA DEFERRED COMPENSATION PLAN TO CONFORM WITH CURRENT FEDERAL LAW AND INTERNAL REVENUE CODE TREASURY REGULATIONS. WHEREAS, the City of Tukwila established the City of Tukwila Deferred Compensation Plan (hereinafter "Plan per Resolution No. 569, adopted on March 7, 1977; and WHEREAS, the City's Finance Director is authorized to execute all necessary agreements with the Hartford Life Insurance Company, ICMA Retirement Corporation, and Security Benefit Group of Companies per Resolution No. 1556, adopted on August 2, 2004; and WHEREAS, the City desires to amend the Plan and related documents to conform with changes in the federal law brought about by the Pension Protection Act of 2006 (PPA), the Heroes Earnings Assistance Act of 2008 (HEART), and the Worker, Retiree, and Employer Recovery Act of 2008 (WRERA); and WHEREAS, the City would like to amend the Plan to include the Roth IRA provision and withdrawals due to qualified military service, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The amended City of Tukwila Deferred Compensation Plan, attached hereto as Attachment A, is hereby adopted for deferred compensation plans of the Hartford Life Insurance Company, ICMA Retirement Corporation and Security Benefit Group of Companies, effective as indicated within the Plan. Section 2. The assets of the Plan are to be held in trust, with the City serving as trustee for the exclusive benefit of the Plan participants and their beneficiaries, and the assets shall not be diverted for any other purpose. W: \Word Processing- City \Resolutions\Amended DCP adopted 11 -22 -11 Cz:bjs Page 1 of 2 25 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Special Meeting thereof this day of 2011. ATTEST /AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney Allan Ekberg, Council President Filed with the City Clerk: Passed by the City Council: Resolution Number: Attachment A: City of Tukwila DCP, effective January 1, 2012 W: \Word Processing- City \Resolutions\Amended DCP adopted 11 -22 -11 CZ: bjs Page 2 of 2 7 CITY OF TUKWILA DCP Effective Date of This Document January 1, 2012 Neither The Hartford nor any of its employees can provide legal or tax advice in connection with the execution of this specimen document. Prior to execution of this document, you should consult with your legal or tax advisor on whether this document is appropriate for your plan. GN 107589 GPLANLVL CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 27 w TABLE OF CONTENTS PREAMBLE................................................................................................... 1 SECTIONI DEFINITIONS 2 1.1 Plan Definitions ..............................2 SECTION II PARTICIPATION AND CONTRIBUTIONS 6 2.1 Eligibility ..............................6 2.2 Election ..............................6 2.3 Commencement of Participation ..............................6 2.4 Amendment of Annual Deferral Election ..............................6 2.5 Information Provided by the Participant ..............................7 2.6 Contributions Made Promptly ..............................7 2.7 Employer Contributions ..............................7 2.8 Leave of Absence ..............................7 2.9 Disability ..............................7 2.10 Protection of Persons Who Serve in a Uniformed Service ..............................7 2.11 Corrective Measures ..............................8 SECTION III LIMITATIONS ON AMOUNTS DEFERRED 9 3.1 Basic Annual Limitation ..............................9 3.2 Age 50 Catch -up Annual Deferral Contributions ..............................9 3.3 Special Section 457 Catch -up Limitation ..............................9 3.4 Special Rules .............................10 3.5 Correction of Excess Deferrals .............................11 SECTION IV INVESTMENT RESPONSIBILITIES 12 4.1 Investment of Deferred Amount .............................12 4.2 Investment Election for Future Contributions .............................12 4.3 Investment Changes for an Existing Account Balance .............................12 4.4 Investment Responsibility .............................12 4.5 Default Investment Fund ............................1.2 4.6 Statements .............................13 SECTIONV LOANS .............................14 5.1 No Loans .............................14 SECTION VI DISTRIBUTIONS 15 6.1 Distributions from the Plan .............................15 6.2 Benefit Distributions Upon Severance from Employment .............................15 6.3 Distributions on Account of Participant's Death .............................16 6.4 Distribution of Small Account Balances Without Participant's Consent .............16 6.5 Forms of Distribution .............................16 6.6 Minimum Distribution Requirements .............................17 6.7 Payments to Minors and Incompetents .............................23 GN 107589 GPLANLVL CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 29 6.8 Procedure When Distributee Cannot Be Located .............................23 6.9 Direct Rollover .............................23 6.10 Inservice Distributions .............................24 6.11 Qualified Distributions for Retired Public Safety Officers .............................27 SECTION VII ROLLOVERS AND PLAN TRANSFERS 28 7.1 Eligible Rollover Contributions to the Plan .............................28 7.2 Plan -to -Plan Transfers to the Plan .............................28 7.3 Plan -to -Plan Transfers from the Plan .............................29 7.4 Permissive Service Credit Transfers .............................30 SECTION VIII BENEFICIARY 31 8.1 Designation ............................31. SECTION IX ADMINISTRATION AND ACCOUNTING 32 9.1 Administrator .............................32 9.2 Administrative Costs .............................32 9.3 Paperless Administration .............................32 SECTIONX AMENDMENTS 34 10.1 Amendment .............................34 1.0.2 Conformation .............................34 1.0.3 Plan Termination .............................34 SECTIONXI TRUST FUND 35 11.1 Trust Fund .............................35 SECTION XII MISCELLANEOUS 36 12.1 Non Assignability .............................36 1.2.2 Domestic Relation Orders .............................36 1.2.3 IRS Levy .............................36 12.4 Mistaken Contributions .............................36 12.5 Employment .............................37 1.2.6 Successors and Assigns .............................37 12.7 Written Notice .............................37 12.8 Total Agreement .............................37 12.9 Gender .............................37 12.10 Controlling Law .............................37 GN 107589 GPLANLVL— CORRSPND ii Specimen 457(b) Plan Document Del'erred Compensation Plan Ver 102011 30 457(b) PLAN DOCUMENT DEFERRED COMPENSATION PLAN PREAMBLE Adoption of Plan The City of Tukwila DCP (hereinafter "the Plan an eligible deferred compensation plan within the meaning of Section 457(b) of the Internal Revenue Code of 1986, as amended (hereinafter the "Code of a State or local government as described in Code Section 457(e)(1)(A), adopted by City of Tukwila (hereinafter the "Employer effective November 1, 2011. Purpose of Plan The primary purpose of this Plan is to permit Employees of the Employer to enter into an agreement which will provide for deferral of payment of a portion of his or her current compensation until death, retirement, severance from employment, or other event, in accordance with the provisions of the Code Section 457(b), with other applicable provisions of the Code, and in accordance with the General Statutes of the State. Status of Plan It is intended that the Plan shall qualify as an eligible deferred compensation plan within the meaning of Code Section 457(b) sponsored by an eligible employer within the meaning of Code Section 457(e)(1)(A), i.e., a State, political subdivision of a State, and agency or instrumentality of a State or political subdivision of a State. Tax Consequences of Plan The Employer does not and cannot represent or guarantee that any particular federal or State income, payroll, or other tax consequence will occur by reason of participation in this Plan. A Participant should consult with his or her own counsel or other representative regarding all tax or other consequences of participation in this Plan. GN 107589 Specimen 457(6) Plan Document GPLANLVL— CORRSPND Deferred Compensation Plan Ver 102011 31 SECTION I DEFINITIONS 1.1 Plan Definitions For purposes of this Plan, the following words and phrases have the meaning set forth below, unless a different meaning is plainly required by the context: An "Account Balance" means the bookkeeping account maintained with respect to each Participant which reflects the value of the deferred Compensation credited to the Participant, including the Participant's Annual Deferrals, the earnings or loss of the Trust Fund (net of Trust Fund expenses) allocable to the Participant, any transfers for the Participant's benefit, and any distribution made to the Participant or the Participant's Beneficiary. If a Participant has more than one Beneficiary at the time of the Participant's death, then a separate Account Balance shall be maintained for each Beneficiary. The Account Balance includes any account established under Section VII for rollover contributions and plan -to -plan transfers made for a Participant, the account established for a Beneficiary after a Participant's death, and any account or accounts established for an alternate payee (as defined in Code Section 414(p)(8)). The "Administrator" means the Employer. The term Administrator includes any person or persons, committee, or organization appointed by the Employer to administer the Plan. An "Annual Deferral" means the amount of Compensation deferred in any calendar year. The "Beneficiary" of a Participant means the person or persons (or, if none, the Participant's estate) who is entitled under the provisions of the Plan to receive a distribution in the event the Participant dies before receiving distribution of his or her entire interest under the Plan. The "Code" means the Internal Revenue Code of 1986, as now in effect or as hereafter amended from time to time. Reference to a Code Section includes such section and any comparable section or sections of any future legislation that amends, supplements, or supersedes such section. The "Compensation" of a Participant means all cash compensation for services to the Employer, including salary, wages, fees, commissions, bonuses, and overtime pay, that is includible in the Employee's gross income for the calendar year, including, as applicable, compensation attributable to services as an independent contractor, plus amounts that would be cash compensation for services to the Employer includible in the Employee's gross income for the calendar year but for a compensation reduction election under Code Section 125, 132(f), 401(k), 403(b), or 457(b) (including an election to defer compensation under Section II). Any payments described below made to a Participant after a Severance from Employment shall qualify as Compensation for purposes of the Plan, but only if the payments are made by the later of (a) the end of the calendar year in which the Severance from Employment occurred or (b) within 2 2 months of such Severance from Employment: 2 GN 107589 Specimen 457(b) Plan Document GPLANLVL CORRSPND Deferred Compensation Plan Ver 102011 32 (a) Payments that, absent a Severance from Employment, would have been paid to the Participant while the Participant continued in employment with the Employer, but only if such payments constitute regular compensation for services during the Participant's regular working hours, compensation for services outside the Participant's regular working hours (such as overtime or a shift differential), commissions, bonuses or other similar compensation; (i) Payments for accrued bona fide sick, vacation or other leave, but only if the Participant would have been able to use the leave if employment had continued; and Any payment that is not described above shall not be considered Compensation if it is paid after the date of the Participant's Severance from Employment, even if it is paid within 2 1 /2 months of such date. Thus, for example, Compensation does not include severance pay. For years beginning after December 31, 2008, (a) a Participant receiving a differential wage payment, as defined by Code §34O1(h)(2), by reason of qualified military service (within the meaning of Code Section 414(u)), is treated as an Employee of the Employer making the payment and (b) the differential wage payment is treated as Compensation. An "Employee" means each natural person who is employed by the Employer as a common law employee on a full time basis or on a part-time basis and any employee in an elected or appointed position; provided, however, that the term Employee shall not include a leased employee or any employee who is included in a unit of employees covered by a collective bargaining agreement that does not specifically provide for participation in the Plan. Any individual who is not treated by the Employer as a common law employee of the Employer shall be excluded from Plan participation even if a court or administrative agency determines that such individual is a common law employee of the Employer, unless the Employer has included the individual in Plan participation as an independent contractor. An "Employer" means the eligible employer (within the meaning of Code Section 457(e)(1)) that has adopted the Plan. In the case of an eligible employer that is an agency or instrumentality of a political subdivision of a State within the meaning of Code Section 457(e)(1)(A), the term Employer shall include any other agency or instrumentality of the same political subdivision that has adopted the Plan. "Includible Compensation" means, with respect to a taxable year, the Participant's compensation as defined in Code Section 415(c)(3) and the regulations thereunder, for services performed for the Employer. The amount of Includible Compensation is determined without regard to any community property laws. "Normal Retirement Age" means age 70 1 /2, unless the Participant has elected an alternate Normal Retirement Age and delivered such election to the Administrator. Such date shall be no earlier than the earliest date that the Participant will become eligible to retire and receive, under the basic defined benefit pension plan of the Employer (or a money purchase plan in which the Participant also participates if the Participant is not eligible to participate in a defined benefit GN 10789 GPLnNLVL CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 33 plan) immediate retirement benefits without actuarial or similar reduction because of retirement before some later specified age, but not greater than age 70 /2). If a Participant continues employment after attaining age 70'/2, not having previously elected an alternate Normal Retirement Age, the Participant's alternate Normal Retirement Age shall not be later than the mandatory retirement age, if any, established by the Employer, or any age at which the Participant actually has a Severance from Employment if the Employer has no mandatory retirement age. If the Participant will not become eligible to receive benefits under a basic defined benefit pension plan (or money purchase pension plan, if applicable) maintained by the Employer, the Participant's alternate Normal Retirement Age may not be earlier than age 65 and may not be later than age 70 '/2. In the event a Participant is a qualified police or firefighter (as defined under Code Section 415(b)(2)(H)(ii)(I)) Normal Retirement Age means age 70 '/2, unless the Participant has elected an alternate Normal Retirement Age and delivered such election to the Administrator. Such date shall be no earlier than the earliest date that the Participant will become eligible to retire and receive, under the basic defined benefit pension plan of the Employer (or a money purchase plan in which the Participant also participates if the Participant is not eligible to participate in a defined benefit plan), immediate retirement benefits without actuarial or similar reduction because of retirement before some later specified age which may not be earlier than age 40 and may not be later than age 70 /2. A Participant's Normal Retirement Age must be the same as his or her normal retirement age under any other eligible deferred compensation plan or plans sponsored by the Employer. The designation of a Normal Retirement Age under the Plan does not compel retirement with the Employer. The "Participant" means an individual who is currently deferring Compensation, or who has previously deferred Compensation under the Plan by salary reduction and who has not received a distribution of his or her entire benefit under the Plan. Only individuals who perform services for the Employer as an Employee may defer Compensation under the Plan. "Roth Contributions" means the amount of any Annual Deferral elected by a Participant that is irrevocably designated by the Participant as being made pursuant to, and intended to comply with, Code Section 402A. Roth Contributions are includable in the Participant's taxable gross income at the time they are contributed to the Plan and have been irrevocably designated as Roth Annual Deferrals by the Participant in their deferral agreement. The Administrator shall establish and maintain for the Employee a separate account for any Roth Contributions made to the Plan, to which only Roth Contributions and the income attributable thereto shall be allocated. Roth Contributions also includes any contributions made to another eligible retirement plan that are rolled over to the Plan in accordance with the provisions of Section 7.1 and that the Participant designated as Roth contributions at the time they were contributed to such other plan. "Severance from :Employment" means the date that the Employee dies, retires, or otherwise has a severance from employment with the Employer, as determined by the Administrator (and taking into account guidance issued under the Code). Solely for the purpose of determining whether the Participant is entitled to receive a distribution of his or her Account Balance 4 GN 107589 Specimen 457(b) Plan Document GPLANLVL— CORRSPND Deferred Compensation Plan Ver 102011 34 pursuant to Section 6.2, a Participant shall be treated as having been severed from employment during any period the Participant is performing service in the uniformed services (as defined in chapter 43 of title 38, United States Code) while on active duty for a period of more than 30 days. The "State" means the State that is the Employer or of which the Employer is a political subdivision, and any agency, or instrumentality, including any agency or instrumentality of a political subdivision of the State, or the State in which the Employer is located. The "Trust Fund" means the trust fund created under and subject to a trust agreement or a custodial account or contract described in Code Section 401(f) held on behalf of the Plan. The "Valuation Date" means each business day. GN 10789 GPLANLVL CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 35 SECTION II PARTICIPATION AND CONTRIBUTIONS 2.1 Eligibility Each Employee shall be eligible to participate in the Plan and defer Compensation hereunder immediately upon becoming employed by the Employer. 2.2 Election An Employee may elect to become a Participant by executing an election to defer a portion of his or her Compensation (and have that amount contributed as an Annual Deferral on his or her behalf) and filing it with the Administrator. This participation election shall be made on the deferral agreement provided by the Administrator under which the Employee agrees to be bound by all the terms and conditions of the Plan. Any such election shall remain in effect until a new election is filed. The Administrator may establish a minimum deferral amount, and may change such minimmns from time to time. The deferral agreement shall also include designation of investment funds and a designation of Beneficiary. The deferral agreement may also include a Participant's designation that all or a portion of the Annual Deferral elected by the Participant shall be treated as Roth Contributions. 2.3 Commencement of Participation An Employee shall become a Participant as soon as administratively practicable following the date the Employee files an election pursuant to Section 2.2. Such election shall become effective no earlier than the calendar month following the month in which the election is made. A new Employee may defer compensation payable in the calendar month during which the Participant first becomes an Employee if an agreement providing for the deferral is entered into on or before the first day on which the Participant performs services for the Employer. 2.4 Amendment of Annual Deferral Election Subject to other provisions of the Plan, a Participant may at any time revise his or her participation election, including a change of the amount of his or her Annual Deferrals, his or her investment direction and his or her designated Beneficiary. The revised participation election may also include a change in the Participant's designation of the amount of the Annual Deferral elected by the Participant that is to be treated as Roth Contributions. Unless the election specifies a later effective date, a change in the amount of the Annual Deferrals shall take effect as of the first day of the next following month or as soon as administratively practicable if later. A change in the investment direction shall take effect as of the date provided by the Administrator on a uniform basis for all Employees. A change in the Beneficiary designation shall take effect when the election is accepted by the Administrator. GN 107589 GPLANLVL CORRSPND rel Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 36 2.5 Information Provided by the Participant Each Employee enrolling in the Plan should provide to the Administrator at the time of initial enrollment, and later if there are any changes, any information necessary or advisable for the Administrator to administer the plan, including, without limitation, whether the Employee is a participant in any other eligible plan under Code Section 457(b). 2.6 Contributions Made Promptly Annual Deferrals by the Participant under the Plan shall be transferred to the Trust Fund within a period that is not longer than is reasonable for the proper administration of the Participant's Account Balance. For this purpose, Annual Deferrals shall be treated as contributed within a period that is not longer than is reasonable for the proper administration if the contribution is made to the Trust Fund within 15 business days following the end of the month in which the amount would otherwise have been paid to the Participant, or earlier if required by law. 2.7 Employer Contributions Nothing in this Plan prohibits the Employer from making annual deferrals to the Account Balance of a Participant on a non elective basis, subject to the Participant's contribution limits in Section .11I. 2.8 Leave of Absence Unless an election is otherwise revised, if a Participant is absent from work by leave of absence, Annual Deferrals under the Plan shall continue to the extent that Compensation continues. 2.9 Disability A disabled Participant (as determined by the Administrator) may elect Annual Deferrals during any portion of the period of his or her disability to the extent that he or she has actual Compensation (not imputed Compensation and not disability benefits) from which to make contributions to the Plan and has not had a Severance from Employment. 2.1.0 Protection of Persons Who Serve in a Uniformed Service An Employee whose employment is interrupted by qualified military service under Code Section 41.4(u) or who is on a leave of absence for qualified military service under Code Section 414(u) may elect to make additional Annual Deferrals upon resumption of employment with the Employer equal to the maximum Annual Deferrals that the Employee could have elected during that period if the Employee's employment with the Employer had continued (at the same level of Compensation) without the interruption or leave, reduced by the Annual Deferrals, if any, actually made for the Employee during the period of the interruption or leave. This right applies for five years following the resumption of employment (or, if sooner, for a period equal to three times the period of the interruption or leave). GN 10789 GPLANLVL CORRSPND 7 Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 37 A reemployed Employee shall also be entitled to an allocation of any additional Employer Contributions, if applicable, that such Employee would have received under the Plan had the Employee continued to be employed as an eligible Employee during the period of qualified military service. Such restorative Employer Contributions (without interest), if applicable, shall be remitted by the Employer to the Plan on behalf of the Employee within 90 days after the date of the Employee's reemployment or, if later, as of the date the contributions are otherwise due for the year in which the applicable qualified military service was performed. 2.11 Corrective Measures In the event that an otherwise eligible Employee is erroneously omitted from Plan participation, or an otherwise ineligible individual is erroneously included in the Plan, the Employer shall take such corrective measures as may be permitted by applicable law. Such measures may include, in the case of an erroneously omitted Employee, contributions made by the Employer to the Plan on behalf of such Employee equal to the missed deferral opportunity, subject to the Participant's contribution limits in Section III, and, in the case of an erroneously included individual, a payment by the Employer to such individual of additional compensation in an amount equal to the amount of the individual's elective deferrals under the Plan. GN 107589 GPLANLVL CORRSPND Specimen 457(b) Plan Document Deterred Compensation Plan Ver 102011 i SECTION III LIMITATIONS ON AMOUNTS DEFERRED 3.1 Basic Annual Limitation (a) The maximum amount of the Annual Deferral and, if applicable, Employer Contributions under the Plan for any calendar year shall not exceed the lesser of- (i) The "applicable dollar amount" (as defined in paragraph (b) below); or (ii) The Participant's Includible Compensation for the calendar year. (b) The "applicable dollar amount" means the amount established under Code Section 457(e)(15), as indexed, and in accordance with 3.4(a). (c) Rollover amounts received by the Plan under Treasury Regulation Section 1.457 -10(e) and any plan -to -plan transfer into the Plan made pursuant to Section 7.2 shall not be applied against the Annual Deferral limit. 3.2 Age 50 Catch -up Annual Deferral Contributions A Participant who will attain age 50 or more by the end of a calendar year is permitted to elect an additional amount of Annual Deferral for the calendar year, up to the maximum age 50 catch -up Annual Deferral Iii under §414(v)(2), as indexed. The amount of the age 50 catch -up Annual Deferral for any calendar year cannot exceed the amount of the Participant's Compensation, reduced by the amount of the elective deferred compensation, or other elective deferrals, made by the Participant under the Plan and in accordance with 3.4(a). The age 50 catch -up Annual Deferral limit is not available to a Participant for any calendar year for which the Special Section 457 Catch -up Limitation described in Section 3.3 is available and applied. 3.3 Special Section 457 Catch -up Limitation Notwithstanding the provisions of Sections 3.1 and 3.2, with respect to a year that is one of a Participant's last three (3) calendar years ending before the year in which the Participant attains Normal Retirement Age and the amount determined under this Section 3.3 exceeds the amount computed under Sections 3.1 and 3.2, then the Annual Deferral limit under this Section 3.3 shall be the lesser of. (a) An amount equal to two (2) times the Section 3.1 Applicable Dollar Amount for such year; or (b) The sum of: GN 107589 GPLANLVL— CORRSPND 0 Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 W (i) An amount equal to (A) the aggregate Section 3.1 limit for the current year plus each prior calendar year beginning after December 31, 2001, during which the Participant was an Employee under the Plan, minus (B) the aggregate amount of Compensation that the Participant deferred under the Plan during such years, plus (ii) An amount equal to (A) the aggregate limit referred to in Code Section 457(b)(2) for each prior calendar year beginning after December 31, 1978, and before January 1, 2002, during which the Participant was an Employee (determined without regard to Sections 3.2 and 3.3), minus (B) the aggregate contributions to Pre -2002 Coordination Plans (as defined in Section 3.4(c)) made by or on behalf of the Participant for such years. However, in no event can the deferred amount be more than the Participant's Compensation for the year. 3.4 Special Rules For purposes of this Section II1, the following rules shall apply: (a) Participant Covered By More Than One Eligible Plan. If the Participant is or has been a participant in one or more other eligible plans within the meaning of Code Section 457(b), then this Plan and all such other plans shall be considered as one plan for purposes of applying the foregoing limitations of this Section III. For this purpose, the Administrator shall take into account any other such eligible plan maintained by the Employer and shall also take into account any other such eligible plan for which the Administrator receives from the Participant sufficient information concerning his or her participation in such other plan. (b) Pre Participation Years. In applying Section 3.3, a year shall be taken into account only if (i) the Participant was eligible to participate in the Plan during all or a portion of the year and (ii) Compensation deferred, if any, under the Plan during the year was subject to the Basic Annual Limitation described in Section 3.1 or any other plan ceiling required by Code Section 457(b). (c) Pre -2002 Coordination Years. For purposes of Section 3.3(b)(ii)(B), "contributions to Pre -2002 Coordination Plans" means any employer contribution, salary reduction or elective contribution under any other eligible Code Section 457(b) plan, or a salary reduction or elective contribution under any Code Section 401(k) qualified cash or deferred arrangement, Code Section 402(h)(1)(B) simplified employee pension (SARSEP), Code Section 403(b) annuity contract, and Code Section 408(p) simple retirement account, or under any plan for which a deduction is allowed because of a contribution to an organization described in Code Section 501(c)(18), including plans, arrangements or accounts maintained by the Employer or any employer for whom the Participant performed services. However, the contributions for any calendar year are only taken into account for purposes of Section 3.3(b)(ii)(B) to the extent that the total of such contributions does not exceed the aggregate limit referred to in Code Section 457(b)(2) for that year. 10 GN 107589 Specimen 457(b) Plan Document GPLANLVL— CORRSPND Deferred Compensation Plan Ver 102011 is (d) Disregard Excess Deferral. For purposes of Sections 3.1, 3.2, and 3.3, an individual is treated as not having deferred compensation under a plan for a prior taxable year if excess deferrals under the plan are distributed, as described in Section 3.5. To the extent that the combined deferrals for pre -2002 years exceeded the maximum deferral limitations, the amount is treated as an excess deferral for those prior years. 3.5 Correction of Excess Deferrals If the Annual Deferral on behalf of a Participant for any calendar year exceeds the limitations described above, or the Annual Deferral on behalf of a Participant for any calendar year exceeds the limitations described above when combined with other amounts deferred by the Participant under another eligible deferred compensation plan under Code Section 457(b) for which the Participant provides information that is accepted by the Administrator, then the Annual Deferral, to the extent in excess of the applicable limitation (adjusted for any income or loss in value, if any, allocable thereto), shall be distributed to the Participant as soon as administratively practicable after the Administrator determines that the amount is an excess deferral. If a Participant to whom distribution must be made in accordance with the preceding sentence has made Roth Contributions for the year, the amount distributed as an excess deferral shall be made first from pre -tax Annual Deferrals, then from Roth Contributions for the year unless otherwise specified. GN 10789 GPLANLVL— CORRSPND 11 Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 41 SECTION IV INVESTMENT RESPONSIBILITIES 4.1 Investment of Deferred Amount Each Participant or Beneficiary shall direct the investment of amounts held in his or her Account Balance under the Plan among the investment options of the Trust Fund. The investment of amounts segregated on behalf of an alternate payee pursuant to a Plan approved domestic relations order (as defined under Code Section 414(p)) may be directed by such alternate payee to the extent provided in such order. In the absence of such direction, such amounts shall be invested in the same manner as they were immediately before such segregation was made on account of such order. Each Account Balance shall share in any gains or losses of the investment(s) in which such account is invested. 4.2 Investment Election for Future Contributions A Participant may amend his or her investment election at such times and by such manner and form as prescribed by the Administrator. Such election will, unless specifically stated otherwise, apply only to future amounts contributed under the Plan. 4.3 Investment Changes for an Existing Account Balance The Participant, Beneficiary, alternate payee, or Administrator may elect to transfer amounts in his Account Balance among and between those investments available under the Trust Fund at such times and by such manner and form prescribed by the Administrator, subject further to any restrictions or limitations placed on any investment by the Administrator to be uniformly applied to all Participants. 4.4 Investment Responsibility To the extent that a Participant, Beneficiary, or alternate payee exercises control over the investment of amounts credited to his Account Balance, the Employer, the Administrator, and any other fiduciary of the Plan shall not be liable for any losses that are the direct and necessary result of investment instructions given by a Participant, Beneficiary or an alternate payee. 4.5 Default Investment Fund The Employer shall maintain a Default Investment Fund which shall be held and administered under the Trust Fund. Any Participant who does not make an investment election on the deferral agreement provided by the Administrator will have his contributions invested in the Default Investment Fund until such time he provides investment direction under sections 4.2 and 4.3. Additionally, a Beneficiary or alternate payee who does not make an investment election will have his Account Balance invested in the Default Investment Fund until such time he provides investment direction under section 4.3. The interest of each Participant, Beneficiary, or alternate payee under the Plan in the Default Investment Fund shall be an undivided interest. GN 107589 GPLANLVL CORRSPND 12 Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 42 4.6 Statements The Administrator will cause to be issued statements periodically to reflect the contributions and actual earnings posted to the Account Balances. GN 107589 GPLANLVL CORRSPND 13 Specimen 457(6) Plan Document Deferred Compensation Plan Ver 102011 43 SECTION V LOANS 5.1 No Loans There shall be no loans made to Participants from the Plan. GN 107589 GPLANLVL CORRSPND 14 Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 ii SECTION VI DISTRIBUTIONS 6.1 Distributions from the Plan (a) Earliest Distribution Date. Payments from a Participant's Account Balance shall not be made earlier than: (1) the Participant's Severance from Employment pursuant to Section 6.2 (ii) the Participant's death pursuant to Section 6.3 (iii) Plan termination under Section 10.3 (iv) an unforeseeable emergency withdrawal pursuant to Section 6.10(a), if permitted under the Plan (v) a de minimis account balance distribution pursuant to Section 6.10(b), if permitted under the Plan (vi) a rollover account withdrawal pursuant to Section 6.10(c), if permitted under the Plan (vii) attainment of age 70 1 /2 withdrawal pursuant to Section 6.10(d), if permitted under the Plan (viii) Qualified Military Service Deemed Severance withdrawal pursuant to Section 6.10(e), if permitted under the Plan (ix) Qualified Military Reservist withdrawal pursuant to Section 6.10(f) if permitted under the Plan (x) Qualified Distributions for Retired Public Safety Officers pursuant to Section 6.1.1, if permitted under the Plan (b) Latest Distribution Date. In no event shall any distribution under this Section VI begin later than the Participant's "required beginning date Such required minimum distributions must be made in accordance with Section 6.6. (c) Amount of Account Balance. Except as provided in Section 6.3, the amount of any payment under this Section VI shall be based on the amount of the Account Balance as of the Valuation Date. 6.2 Benefit Distributions Upon Severance from Employment Upon Severance from Employment (other than due to death), a Participant may elect to commence distribution of benefits at any time after Severance from Employment by filing a 15 GN 107589 Specimen 457(b) Plan Document GPLANI_,VL, CORRSPND Deferred Compensation Plan Ver 102011 45 request with the Administrator before the date on which benefits are to commence. However, in no event may distribution of benefits commence later than his or her "required beginning date Distributions required to commence under this section shall be made in the form of benefit provided under Section 6.5. Distributions postponed until the Participant's "required beginning date" will be made in a manner that meets the requirements of Section 6.6. 6.3 Distributions on Account of Participant's Death Upon receipt of satisfactory proof of the Participant's death, the designated Beneficiary may file a request with the Administrator to elect a form of benefit provided under Section 6.5 and made in a manner that meets the requirements of Section 6.6. (a) Death of Participant Before Distributions Bel?in. If the Participant dies before his or her distributions begin, the designated Beneficiary may elect to have distributions to be made (1) in full within 5 years of the Participant's death (5 -year rule) or (ii) in installments over the designated Beneficiary's "life expectancy" (life expectancy rule). If the designated Beneficiary does not make an election by September 30 of the year following the year of the Participant's death, the Participant's Account Balance will be distributed in a lump sum payment by December 31 of the calendar year containing the fifth anniversary of the Participant's death or if the Participant's spouse is the sole designated Beneficiary by December 31 of the year the Participant would have attained age 70 2. (b) Death of Participant On or After Date Distributions BeOn. If the Participant dies on or after his or her distributions began, the Participant's Account Balance shall be paid to the Beneficiary at least as rapidly as under the payment option used before the Participant's death. 6.4 Distribution of Small Account Balances Without Participant's Consent Notwithstanding any other provision of the Plan to the contrary, if the amount of a Participant's or Beneficiary's Account Balance (including the rollover contribution separate account) is not in excess of the amount specified below on the date that payments commence under Section 6.2 or on the date the Administrator is notified of the Participant's death, the Administrator may direct payment without the Participant's or Beneficiary's consent as soon as practicable following the Participant's retirement, death, or other Severance from Employment. (a) The Plan does not provide for distribution of small Account Balances without Participant or Beneficiary consent. 6.5 Forms of Distribution In an election to commence benefits under Section 6.2, a Participant entitled to a distribution of benefits under this Section VI may elect to receive payment in any of the following forms of distribution: 16 GN 107589 Specimen 457(b) Plan Document GPLANLVL CORRSPND Deferred Compensation Plan Ver 102011 M (a) a lump sum payment of the Participant's total Account Balance. (b) partial distribution of the Participant's Account Balance. (c) in a series of installments over a period of years (payable on a monthly, quarterly, semi- annual or annual basis) which extends no longer than the life expectancy of the Participant as permitted under Code Section 401(a)(9). (d) a purchase of a single premium nontransferable annuity contract for such term and in such form as the Participant selects that provides for payments in the form of an irrevocable annuity each calendar year of amounts not less than the amount required under Code Section 401(a)(9). 6.6 Minimum Distribution Requirements (a) General Rules. Notwithstanding anything in this Plan to the contrary, distributions from this Plan shall commence and be made in accordance with Code Section 401(a)(9) and the regulations promulgated thereunder. Additionally, the requirements of this Section 6.6 will take precedence over any inconsistent provisions of the Plan. (b) Time and Maimer of Distribution. (i) Required Be6nnin2 Date. The Participant's entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant's "required beginning date (ii) Death of Participant Before Distributions Be1?in. If the Participant dies before distributions begin, the Participant's entire interest will be distributed, or begin to be distributed, no later than as follows: (A) If the Participant's surviving spouse is the Participant's sole "designated Beneficiary then distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Participant dies, or by December 31 of the calendar year in which the Participant would have attained age 70 ''/2, if later. (B) If the Participant's surviving spouse is not the Participant's sole "designated Beneficiary" (i.e., multiple beneficiaries), then distributions to the "designated Beneficiaries" will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died. (C) If the Participant's sole "designated Beneficiary" is not the Participant's spouse, then distributions to the "designated Beneficiary" will begin by 1.7 GN 107589 Specimen 457(b) Plan Document GPLANLVL CORRSPND Deferred Compensation Plan Ver 102011 47 December 31 of the calendar year immediately following the calendar year in which the Participant died. (D) If there is no "designated Beneficiary" as of September 30 of the year following the year of the Participant's death, the Participant's Account Balance will be distributed in a lump sum payment by December 31 of the calendar year containing the fifth anniversary of the Participant's death. (E) If the Participant's surviving spouse is the Participant's sole "designated Beneficiary" and the surviving spouse dies after the Participant but before distributions to the surviving spouse begin, this subparagraph (b)(ii), other than subsection (b)(ii)(A), will apply as if the surviving spouse were the Participant. For purposes of this subparagraph (ii) and paragraph (d), unless subsection (b)(ii)(D) applies, distributions are considered to begin on the Participant's "required beginning date If subsection (b)(ii)(E) applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under subsection (b)(ii)(A). If distributions under an annuity purchased from an insurance company irrevocably commence to the Participant before the Participant's "required beginning date" (or to the Participant's surviving spouse before the date distributions are required to begin to the surviving spouse under subsection (b)(ii)(A)), the date distributions are considered to begin is the date distributions actually commence. (iii) Death of Participant On or After Distributions Begin. If the Participant dies on or after distributions begin and before depleting his or her Account Balance, distributions must commence to the "designated Beneficiary" by December 31 of the calendar year immediately following the calendar year in which the Participant died. (iv) Forms of Distribution. Unless the Participant's Account Balance is distributed in the form of an annuity contract or in a lump sum on or before the Participant's "required beginning date as of the first distribution calendar year, distributions will be made in accordance with paragraphs (c) and (d). If the Participant's interest is distributed in the form of an annuity contract, distributions thereunder will be made in accordance with the requirements of Code Section 401(a)(9). (c) Required Minimum Distributions During the Participant's Lifetime. (i) Amount of Required Minimum Distribution For Each "Distribution Calendar Year During the Participant's lifetime, the minimum amount that will be distributed for each distribution calendar year is the lesser of: (A) The quotient obtained by dividing the "Participant's account balance" by the distribution period in the Uniform Lifetime Table set forth in Treasury GN 10789 GPLANLVL CORIZS1 IN Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 W Regulation Section 1.401(a)(9) -9, Q &A -2 using the Participant's age as of the Participant's birthday in the "distribution calendar year or (B) if the Participant's sole "designated Beneficiary" for the "distribution calendar year" is the Participant's spouse and the spouse is more than 10 years younger than the Participant, the quotient obtained by dividing the "Participant's account balance" by the distribution period in the Joint and Last Survivor Table set forth in Treasury Regulation Section 1.401(a)(9)- 9, Q &A -3 using the Participant's and spouse's attained ages as of the Participant's and spouse's birthdays in the "distribution calendar year (ii) Lifetime Required Minimum Distributions Continue Through Year of Participant's Death. Required minimum distributions will be determined under this paragraph (c) beginning with the first "distribution calendar year" and up to and including the "distribution calendar year" that includes the Participant's date of death. (d) Required Minimum Distributions After Participant's Death. For purposes of this Section 6.6(d), the Participant's and Beneficiary's "life expectancy" determination will use the Single Life Table set forth in Treasury Regulation Section 1.401(a)(9) -9, Q &A -1. (i) Death On or After Date Distributions Begin. (A) Participant Survived by Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is a "designated Beneficiary", the minimum amount that will be distributed for each "distribution calendar year" after the year of the Participant's death is the quotient obtained by dividing the "Participant's account balance" by the longer of the remaining "life expectancy" of the Participant or the remaining "life expectancy" of the Participant's "designated Beneficiary determined as follows: (1) The Participant's remaining "life expectancy" is calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. (2) If the Participant's surviving spouse is the Participant's sole "designated Beneficiary the remaining "life expectancy" of the surviving spouse is calculated for each "distribution calendar year" after the year of the Participant's death using the surviving spouse's age as of the spouse's birthday in that year. For "distribution calendar years" after the year of the surviving spouse's death, the remaining "life expectancy" of the surviving spouse is calculated using the age of the surviving spouse as of the spouse's birthday in 19 GN 107589 Specimen 457(b) Plan Document GPLANLVL CORRSPND Deferred Compensation Plan Ver 102011 i the calendar year of the spouse's death, reduced by one for each subsequent calendar year. (3) If the Participant's surviving spouse is not the Participant's sole "designated Beneficiary" (i.e., multiple beneficiaries), the "designated Beneficiaries" remaining "life expectancy" is calculated using the age of the oldest Beneficiary in the year following the year of the Participant's death, reduced by one for each subsequent year. (4) If the Participant's sole "designated beneficiary" is not the Participant's spouse, the "designated Beneficiary's" remaining "life expectancy" is calculated using the age of the Beneficiary in the year following the year of the Participant's death, reduced by one for each subsequent year. (B) No Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is no "designated Beneficiary" as of September 30 of the year after the year of the Participant's death, the minimum amount that will be distributed for each "distribution calendar year" after the year of the Participant's death is the quotient obtained by dividing the "Participant's account balance" by the Participant's remaining "life expectancy" calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. (ii) Death Before Date Distributions Begin. (A) Participant Survived by Designated Beneficiary. Except as provided in this Section, if the Participant dies before the date distributions begin and there is a "designated Beneficiary the minimum amount that will be distributed for each "distribution calendar year" after the year of the Participant's death is the quotient obtained by dividing the "Participant's account balance" by the remaining "life expectancy" of the Participant's "designated Beneficiary determined as follows: (1) If the Participant's surviving spouse is the Participant's sole "designated Beneficiary the remaining "life expectancy" of the surviving spouse is calculated for each "distribution calendar year" after the year of the Participant's death using the surviving spouse's age as of the spouse's birthday in that year. (2) If the Participant's surviving spouse is not the Participant's sole "designated Beneficiary" (i.e., multiple beneficiaries), the "designated Beneficiary's" remaining "life expectancy" is 20 GN 107589 GPLANLVL CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 50 calculated using the age of the oldest Beneficiary in the year following the year of the Participant's death, reduced by one for each subsequent year. (3) If the Participant's sole "designated beneficiary" is not the Participant's spouse, the "designated Beneficiary's" remaining "life expectancy" is calculated using the age of the Beneficiary in the year following the year of the Participant's death, reduced by one for each subsequent year. (B) No Designated Beneficiary. If the Participant dies before the date distributions begin and there is no "designated Beneficiary" as of September 30 of the year following the year of the Participant's death, distribution of the Participant's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant's death. (C) Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required to Begin. If the Participant dies before the date distributions begin, the Participant's surviving spouse is the Participant's sole "designated Beneficiary and the surviving spouse dies before distributions are required to begin to the surviving spouse under subsection (b)(ii)(A), this subparagraph (d)(ii) will apply as if the surviving spouse were the Participant. (e) Definitions. (i) A Participant's "required beginning date" is April 1 of the year that follows the later of (1) the calendar year the Participant attains age 70 2 or (2) retires due to Severance from Employment. If the Participant postpones the required distribution due in calendar year he or she attains age 70 '/2 or severs employment, to the "required beginming date the second required minimum distribution must be taken by the end of that year. (ii) Participant's "designated Beneficiary" means the individual who is designated as the Beneficiary under Section 8.1 and is the designated Beneficiary under Code Section 401(a)(9) and Treasury Regulation Section 1.401(a)(9) -4. (iii) A "distribution calendar year" means a calendar year for which a minimum distribution is required. For distributions beginning before the Participant's death, the first "distribution calendar year" is the calendar year the Participant attains age 70 '/2 or retires, if later. For distributions beginning after the Participant's death, the first "distribution calendar year" is the calendar year in which distributions are required to begin under subparagraph (b)(ii). GN 10789 GPLANLVL CORRSPND 21 Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 51 The required minimum distribution for the Participant's first "distribution calendar year" will be made on or before the Participant's "required beginning date The required minimum distribution for other "distribution calendar years including the required minimum distribution for the "distribution calendar year" in which the Participant's "required beginning date" occurs, will be made on or before December 31 of that "distribution calendar year (iv) A married Participant's "life expectancy whose spouse is the sole Beneficiary and is more than 10 years younger than the Participant, means the Participant's and spouse Beneficiary's life expectancy as computed by use of the Joint and Last Survivor Life Table under Treasury Regulation Section 1.401 (a)(9)-9, Q &A 3. All other Participants will have his or her life expectancy computed by use of the Uniform Lifetime Table under Treasury Regulation Section 1.401 (a)(9)-9, Q &A 2. A deceased Participant's or Beneficiary's "life expectancy" means his or her life expectancy as computed by use of the Single Life Table under Treasury Regulation Section 1.401(a)(9) -9, Q &A 1. (v) A "Participant's account balance" means the Account Balance as of the last valuation date in the calendar year immediately preceding the "distribution calendar year" (valuation calendar year) increased by the amount of any contributions made and allocated or forfeitures allocated to the Account Balance as of dates in the valuation calendar year after the valuation date and decreased by distributions made in the valuation calendar year after the valuation date. The Account Balance for the valuation calendar year includes any amounts rolled over or transferred to the Plan either in the valuation calendar year or in the "distribution calendar year" if distributed or transferred in the valuation calendar year. (f) Special Provision Applicable to 2009 Required Minimum Distributions. A Participant who would otherwise be required to receive a minimum distribution from the Plan in accordance with Code Section 401 (a)(9) for the 2009 "distribution calendar year" may elect not to receive any such distribution that is payable with respect to the 2009 "distribution calendar year Notwithstanding the provisions of Section 6.9(b)(iii), the Administrator may permit a Participant who receives a minimum distribution from the Plan for the 2009 "distribution calendar year" to make a direct rollover of such distribution to an "eligible retirement plan" in accordance with the provisions of Section 6.9. The Administrator may also permit a Participant or former Participant who has received a minimum distribution for the 2009 "distribution calendar year" to roll over such distribution back into the Plan, provided the requirements of Code Section 402(c), as modified by Notice 2009 -82, extending the 60 -day rollover deadline, and the requirements of Section 7.1 are otherwise satisfied. If the distribution received by the Participant included amounts in addition to the minimum required under Code Section 401(a)(9), the Administrator may allow the Participant to include a portion or all of the 22 GN 107589 GPLANLVL CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 52 amount that was not a minimum distribution in the Rollover Contribution made to the Plan in accordance with this paragraph. The provisions of this Section 6.6(f) are effective for minimum payments made for the 2009 "distribution calendar year" and do not include any minimum payment that is made in 2009, but is attributable to a different year (i.e., the participant reached his required beginning date in 2008, but payment of the 2008 minimum is not made until 2009). 6.7 Payments to Minors and Incompetents If a Participant or Beneficiary entitled to receive any benefits hereunder is a minor or is adjudged to be legally incapable of giving valid receipt and discharge for such benefits, or is deemed so by the Administrator, benefits will be paid to such person as the Administrator or a court of competent jurisdiction may designate for the benefit of such Participant or Beneficiary. Such payments shall be considered a payment to such Participant or Beneficiary and shall, to the extent made, be deemed a complete discharge of any liability for such payments under the Plan. 6.8 Procedure When Distributee Cannot Be Located The Administrator shall make all reasonable attempts to determine the identity and address of a Participant or a Participant's Beneficiary entitled to benefits under the Plan. For this purpose, a reasonable attempt means (a) the mailing by certified mail of a notice to the last known address shown in the Administrator's records; (b) use of the Internal Revenue Service letter forwarding program under IRS Revenue Procedure 94 -22; (c) use of a commercial locator service, the internet or other general search method; (d) use of the Social Security Administration search program; or (e) use such other methods as the Administrator believes prudent. If the Participant or Beneficiary has not responded within 6 months, the Plan shall continue to hold the benefits due such person until, in the Administrator's discretion, the Plan is required to take other action under applicable law. Notwithstanding the foregoing, if the Administrator is unable to locate a person entitled to benefits hereunder after applying the search methods set forth above, then the Administrator, in its sole discretion, may pay an amount that is immediately distributable to such person in a direct rollover to an individual retirement plan designated by the Administrator. 6.9 Direct Rollover (a) A Participant or Beneficiary (or a Participant's former spouse who is the alternate payee under a domestic relations order, as defined in Code Section 414(p)) who is entitled to an "eligible rollover distribution" may elect, at the time and in the manner prescribed by the Administrator, to have all or any portion of the distribution paid directly to an "eligible retirement plan" specified by the Participant or Beneficiary in a direct rollover. (b) For purposes of this Section 6.9, an "eligible rollover distribution" means any distribution of all or any portion of a Participant's Account Balance, except that an eligible rollover distribution does not include (i) any distribution that is one of a series of substantially 23 GN 107589 Specimen 457(b) Plan Document GPLANL.VL— CORRSPND Deferred Compensation Plan Ver 102011 53 equal periodic payment made not less frequently than annually for the life or life expectancy of the Participant or the joint lives or life expectancies of the Participant and the Participant's designated beneficiary, or for a specified period of ten years or more (ii) any distribution made as a result of an unforeseeable emergency, or (iii) any distribution that is a required minimum distribution under Code Section 401(a)(9). In addition, an "eligible retirement plan" with respect to the Participant, the participant's spouse, or the Participant's spouse or former spouse who is an alternate payee under a domestic relations order as defined in Code Section 414(p) means any of the following: (i) an individual retirement account described in Code Section 408(a), (ii) an individual retirement annuity described in Code Section 408(b), (iii) an annuity plan described in Code Section 403(a), (iv) a qualified defined contribution plan described in Code Section 401(a), (v) an annuity contract described in Code Section 403(b), (vi) an eligible deferred compensation plan described in Code Section 457(b) that is maintained by a State, political subdivision of a State, or any agency or instrumentality of a State or political subdivision of a State, or (vii) effective for distributions made on or after January 1, 2008, a Roth IRA, as described in Code Section 408A, provided, that for distributions made before January 1, 2010, such rollover shall be subject to the limitations contained in Code Section 408A(c)(3)(B) Notwithstanding any other provision of this Section 6.9(b), a plan or contract described in clause (iii), (iv), (v), or (vi) above shall not constitute an "eligible retirement plan" with respect to a distribution of Roth Contributions unless such plan or contract separately accounts for such distribution, including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. (c) A Beneficiary who is not the spouse of the deceased Participant may elect a direct rollover of a distribution to an individual retirement account described in Code Section 408(b) or to a Roth individual retirement account described in Code Section 408A(b) "IRA provided that the distributed amount satisfies all the requirements to be an eligible rollover distribution. The direct rollover must be made to an IRA established on behalf of the designated Beneficiary that will be treated as an inherited IRA pursuant to the provisions of Code Section 402(c)(11). The IRA must be established in a manner that identifies it as an IRA with respect to a deceased Participant and also identifies the deceased Participant and the Beneficiary. This Section applies to distributions made on or after January 1, 2007. 630 Inservice Distributions (a) Unforeseeable Ememencv Distributions. If the Participant who has not incurred a Severance from Employment or Beneficiary has an unforeseeable emergency, the Administrator may approve a single sum distribution of the amount requested or, if less, the maximum amount determined by the Administrator to be permitted to be distributed under this Section 6.10(a), Treasury Regulation Section 1.457 -6(c) or other regulatory guidance. The Administrator shall determine whether an unforeseeable emergency exists GN 107589 GPLANLVL CORRSPND 24 Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 54 based on relevant facts and circumstances, and Treasury Regulation Section 1.457 -6(c) or other regulatory guidance. (i) An unforeseeable emergency is defined as a severe financial hardship of the resulting from the following: (A) an illness or accident of the Participant or Beneficiary, the Participant's or Beneficiary's spouse, or the Participant's or Beneficiary's dependent or the Participant's "primary Beneficiary (B) loss of the Participant's or Beneficiary's property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by homeowner's insurance, e.g., as a result of a natural disaster); (C) the need to pay for the funeral expenses of a Participant's or Beneficiary's spouse, Participant's or Beneficiary's dependent or "primary Beneficiary" of the Participant; (D) the need to pay for medical expenses of the Participant or Beneficiary, the Participant's or Beneficiary's spouse, Participant's or Beneficiary's dependent or the Participant's "primary Beneficiary" which are not reimbursed or compensated by insurance or otherwise, including non- refundable deductibles, as well as for the cost of prescription drug medication; (E) the imminent foreclosure of or eviction from the Participant's or Beneficiary's primary residence; or (F) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant or Beneficiary. However, except as otherwise specifically provided in this Section 6.1O(a), certain circumstances are not considered an unforeseen emergency such as the purchase of a home or the payment of college tuition or credit card debt. For purposes of this paragraph, if the Participant is not deceased, a "primary Beneficiary" shall be limited to a primary Beneficiary under the Plan, which is an individual who is named as a Beneficiary pursuant to Section 8.1 and has an unconditional right to all or a portion of the Participant's Account Balance upon the death of the Participant, and which shall not include a contingent beneficiary. Additionally, dependent shall be limited to the definition under Code Section 152(a), and, for taxable years beginning on or after January 1, 2005, without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B). (ii) Unforeseeable emer>?encv distribution standard. A distribution on account of unforeseeable emergency may not be made to the extent that such emergency is or 25 GN 107589 Specimen 457(b) Plan Document GPLANLVL CORRSPND Deferred Compensation Plan Ver 102011 55 may be relieved through reimbursement or compensation from insurance or otherwise; by liquidation of the Participant's assets, to the extent the liquidation of such assets would not itself cause severe financial hardship; or by cessation of deferrals under the Plan if the cessation of deferrals would alleviate the financial need. (iii) Distribution necessary to satisfy emergency need. Distributions because of an unforeseeable emergency may not exceed the amount reasonably necessary to satisfy the emergency need (which may include any amounts necessary to pay any federal, State, or local income taxes or penalties reasonably anticipated to result from the distribution). (b) De minimis Account Balance Distributions. A Participant before Severance of Employment may request a distribution of his or her total Account Balance (excluding the rollover contribution separate account), which shall be paid in a lump sum payment as soon as practical following the direction if (i) the total Account Balance does not exceed $5,000 (or the dollar limit under Code Section 411(a)(11), if greater), (ii) the Participant has not previously received a distribution of their total Account Balance payable to the Participant under this Section 6.10(b), and (iii) no Annual Deferral has been made with respect to the Participant during the two -year period ending immediately before the date of the distribution. The Plan does not permit the Administrator to direct payments under the terms of this Section 6.10(b) without the Participant's consent. (c) Rollover Account Distributions. If a Participant has a separate account attributable to rollover contributions under the Plan, the Participant before Severance of Employment may at any time elect to receive an inservice distribution of all or any portion of the amount held in the rollover separate account. Any designated Roth contributions rolled over to the Plan are treated as Roth Contributions for Plan purposes and are not eligible for inservice withdrawal under this Section 6.10(c). (d) Age 70 '/2 Distributions. Prior to Severance from Employment, a Participant may withdraw all or a portion of his or her Account Balance on or after first day of the calendar year in which the Participant shall attain age 70 -1/2. (e) Oualified Military Service Deemed Severance Distributions. Notwithstanding any other provision of the Plan to the contrary, a Participant before Severance of Employment who is a absent from employment because of service with the uniformed services (as described in United Stated Code, Title 38, Chapter 43) for more than 30 days shall be treated as if he had incurred a severance from employment for purposes of receiving a distribution. A Participant who is deemed to have incurred a severance from employment hereunder may elect to receive a withdrawal from his or her Annual Deferrals. If a participant receives a distribution in accordance with this Section 6.10(e) and would not otherwise be entitled to receive a distribution under the Plan other than this section, his or her Annual Deferrals shall be suspended for at least 6 months after receipt of the 26 GN 107589 Specimen 457(b) Plan Document GPLANLVL CORRSPND Deferred Compensation Plan Ver 102011 56 withdrawal. However, if the distribution is also a "qualified reservist distribution the suspension shall not apply. For purposes of this Section 6.10(e), a "qualified reservist distribution" means a distribution to a reservist or national guardsman who is ordered or called to active duty after September 11, 2001, either (i) for an indefinite period or (ii) for a period longer than 179 days, provided such distribution is made during the period beginning on the date the Participant is ordered or called to active duty and ending on the date the Participant's active duty period closes. (f) Qualified Military Reservist Distributions. Notwithstanding any other provision of the Plan to the contrary, a Participant who is a member of a reserve component (as defined in Section 101 of Title 37 of the United States Code) who is ordered or called to active duty for a period in excess of 179 days, or for an indefinite period, may elect to receive a withdrawal of all or any portion of his or her Annual Deferrals. Any distribution made to a Participant pursuant to this Section 6.10(f) must be made during the period beginning on the date the Participant is ordered or called to active duty and ending on the close of his active duty period. 6.11 Qualified Distributions for Retired Public Safety Officers The Plan does not permit qualified distributions for retired public safety officers. GN -107589 GPLANLVL CORRSPND 27 Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 57 SECTION VII ROLLOVERS AND PLAN TRANSFERS 7.1 Eligible Rollover Contributions to the Plan (a) A Participant who is an Employee and who is entitled to receive an eligible rollover distribution from another "eligible retirement plan as defined in 6.9(b) excluding the direct rollover of after -tax contributions, may request to have all or a portion of the eligible rollover distribution paid to the Plan. The Administrator may require such documentation from the distributing plan as it deems necessary to effectuate the rollover in accordance with Code Section 402 and to confirm that such plan is an "eligible retirement plan" within the meaning of Code Section 402(c)(8)(B). (b) If an Employee makes a rollover contribution to the Plan of amounts that have previously been distributed to him or her, the Employee must deliver to the Administrator the cash that constitutes his or her rollover contribution within 60 days of receipt of the distribution from the distributing "eligible retirement plan Such delivery must be made in the manner prescribed by the Administrator. (c) The Plan shall establish and maintain for the Participant a separate account for any eligible rollover distribution paid to the Plan from any "eligible retirement plan" that is an eligible governmental plan under Code Section 457(b). In addition, the Plan shall establish and maintain for the Participant a separate account for any eligible rollover distribution paid to the Plan from any "eligible retirement plan" that is not an eligible governmental plan under Code Section 457(b). (d) To the extent that the Plan accepts rollover contributions attributable to Roth Contributions, the Administrator shall account for such contributions separately from other rollover contributions. In administering rollover contributions attributable to Roth Contributions, the Administrator shall be entitled to rely on a statement from the distributing plan's administrator identifying (i) the Participant's basis in the rolled over amounts and (ii) the date on which the Participant's 5- taxable -year period of participation (as required under Code Section 402A(d)(2) for a qualified distribution of Roth Contributions) started under the distributing plan. If the 5- taxable -year period of participation under the distributing plan would end sooner than the Participant's 5- taxable -year period of participation under the Plan, the 5- taxable -year period of participation applicable under the distributing plan shall continue to apply with respect to the Roth Contributions included in the rollover contribution. Roth Contributions that are rolled over to the Plan shall be subject to the provisions of the Plan applicable to Roth Contributions rather than the provisions of the Plan applicable to rollover contributions. 7.2 Plan -to -Plan Transfers to the Plan At the direction of the Employer, the Administrator may permit Participants or Beneficiaries who are participants or beneficiaries in another eligible governmental plan under Code Section 457(b) to transfer assets to the Plan as provided in this Section 7.2. Such a transfer is permitted only if 28 GN 107589 Specimen 457(b) Plan Document GPLANLVL CORRSPND Deferred Compensation Plan Ver 102011 the other plan provides for the direct transfer of each Participant's or Beneficiary's interest therein to the Plan. The Administrator may require in its sole discretion that the transfer be in cash or other property acceptable to the Administrator. The Administrator may require such documentation from the other plan as it deems necessary to effectuate the transfer in accordance with Code Section 457(e)(10) and Treasury Regulation Section 1.457 -10(b) and to confirm that the other plan is an eligible governmental plan as defined in Treasury Regulation Section 1.457 2(f). The amount so transferred shall be credited to the Participant's Account Balance and shall be held, accounted for, administered and otherwise treated in the same manner as an Annual Deferral by the Participant under the Plan, except that the transferred amount shall not be considered an Annual Deferral under the Plan in determining the maximum deferral under Section III. 7.3 Plan -to -Plan Transfers from the Plan (a) At the direction of the Employer, the Administrator may permit Participants or Beneficiaries to elect to have all or any portion of his or her Account Balance transferred to another eligible governmental plan within the meaning of Treasury Regulatory Section 1.457 -2(f), if the other eligible governmental plan provides for the receipt of transfers, the Participant or Beneficiary whose amounts deferred are being transferred will have an amount deferred immediately after the transfer at least equal to the amount deferred with respect to that Participant or Beneficiary immediately before the transfer, and the conditions of subparagraph (i), (ii), or (iii) are met. (i) A transfer from the Plan to another eligible governmental plan is permitted in the case of a transfer for a Participant if the Participant has had a Severance from Employment with the Employer and is performing services for the entity maintaining the other eligible governmental plan. (ii) A transfer from the Plan to another eligible governmental plan is permitted if: (A) The transfer is to another eligible governmental plan within the same State as the Plan; (B) All the assets held by the Plan are transferred; and (C) A Participant or Beneficiary whose amounts deferred are being transferred is not eligible for additional annual deferrals in the other eligible governmental plan unless he or she is performing services for the entity maintaining the other eligible governmental plan. (iii) A transfer from the Plan to another eligible governmental plan of the Employer is permitted i£ (A) The transfer is to another eligible governmental plan of the Employer (and, for this purpose, an employer is not treated as the Employer if the Participant's compensation is paid by a different entity); and 29 GN 107589 Specimen 457(b) Plan Document G PLAN LVL— CORRSPND Deferred Compensation Plan Ver 102011 59 (B) A Participant or Beneficiary whose deferred amounts are being transferred is not eligible for additional annual deferrals in the other eligible governmental plan unless he or she is performing services for the entity maintaining the other eligible governmental plan. (b) Upon the transfer of assets under this Section 7.3, the Plan's liability to pay benefits to the Participant or Beneficiary under this Plan shall be discharged to the extent of the amount so transferred for the Participant or Beneficiary. The Administrator may require such documentation from the receiving plan as it deems appropriate or necessary to comply with this Section (for example, to confirm that the receiving plan is an eligible governmental plan under paragraph (a) of this Section 7.3, and to assure that the transfer is permitted under the receiving plan) or to effectuate the transfer pursuant to Treasury Regulation Section 1.457- 10(b). 7.4 Permissive Service Credit Transfers (a) If a Participant is also a participant in a tax- qualified defined benefit governmental plan (as defined in Code Section 414(d)) that provides for the acceptance of plan -to -plan transfers with respect to the Participant, then the Participant may elect to have any portion of the Participant's Account Balance transferred to the defined benefit governmental plan. A transfer under this Section 7.4(a) may be made before the Participant has had a Severance from Employment and without regard to whether the defined benefit governmental plan is maintained by the Employer. The distribution rules applicable to the defined benefit governmental plan to which any amounts are transferred under this Section 7.4 shall apply to the transferred amounts and any benefits attributable to the transferred amounts. (b) A transfer may be made under Section 7.4(a) only if the transfer is either for the purchase of permissive service credit (as defined in Code Section 415(n)(3)(A)) under the receiving defined benefit governmental plan, including service credit for periods for which there is no performance of services, service credited in order to provide an increased benefit for service credit which a participant is receiving under the plan, and service (including parental, medical, sabbatical, and similar leave) as an employee (other than as an employee described in Code Section 415(n)(3)(C)(i)) of an educational organization described in Code Section 170(b)(1)(A)(ii) which is a public, private, or sectarian school which provides elementary or secondary education (through grade 12) or a comparable level of education, as determined under the applicable law of the jurisdiction in which the service was performed, without application of the limitations of Code Section 415(n)(3)(B) in determining whether the transfer is for the purchase of permissive service credit, or a repayment to which Code Section 415 does not apply by reason of Code Section 415(k)(3). GN 107589 G1 CORRSPND 30 Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 MI SECTION VIII BENEFICIARY 8.1 Designation A Participant has the right, by written notice filed with the Administrator, to designate one or more beneficiaries to receive any benefits payable under the Plan in the event of the Participant's death prior to the complete distribution of benefits. The Participant accepts and acknowledges that he or she has the burden for executing and filing, with the Administrator, a proper beneficiary designation form. The form for this purpose shall be provided by the Administrator. The form is not valid until it is signed, filed with the Administrator by the Participant, and accepted by the Administrator. Upon the Participant filing the form and acceptance by the Administrator, the form revokes all beneficiary designations filed prior to that date by the Participant. If no such designation is in effect upon the Participant's death, or if no designated Beneficiary survives the Participant, the Beneficiary shall be the Participant's estate. GN 107589 GPLANLVI_— CORRSPND 31 Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 61 SECTION IX ADMINISTRATION AND ACCOUNTING 9.1 Administrator The Administrator shall have the responsibility and authority to control the operation and administration of the Plan in accordance with the terms of the Plan, the Code and regulations thereunder, and any State law as applicable. The Administrator may contract with a financially responsible independent contractor to administer and coordinate the Plan under the direction of the Administrator. The Administrator shall have the right to designate a plan coordinator or other party of its choice to perform such services under this agreement as may be mutually agreed to between the Administrator and the plan coordinator or other party. Notwithstanding any other provisions to the contrary, the Administrator agrees that it shall be solely responsible to the Employer for any and all services performed by a plan coordinator, subcontractor, assignee, or designee under this agreement. The Administrator has full and complete discretionary authority to determine all questions of Plan interpretation, policy, participation, or benefit eligibility in a manner consistent with the Plan's documents, such determinations shall be conclusive and binding on all persons except as otherwise provided by law. 9.2 Administrative Costs All reasonable expenses of administration may be paid out of the Plan assets unless paid (or reimbursed) by the Employer. Such expenses shall include any expenses incident to the functioning of the Administrator, or any person or persons retained or appointed by any named fiduciary incident to the exercise of his or her duties under the Plan, including, but not limited to, fees of accountants, counsel, investment managers, agents (including nonfiduciary agents) appointed for the purpose of assisting the Administrator in carrying out the instructions of Participants as to the directed investment of his or her accounts and other specialists and his or her agents, and other costs of administering the Plan. In addition, unless specifically prohibited under statute, regulation or other guidance of general applicability, the Administrator may charge to the Account Balance of an individual a reasonable charge to offset the cost of making a distribution to the Participant, Beneficiary, or Alternate Payee. If liquid assets of the Plan are insufficient to cover the fees of the Administrator, then Plan assets shall be liquidated to the extent necessary for such fees. In the event any part of the Plan assets becomes subject to tax, all taxes incurred will be paid from the Plan assets. Until paid, the expenses shall constitute a liability of the trust fund described in Section 1 I. I. 9.3 Paperless Administration The Administrator may use telephonic or electronic media to satisfy any notice requirements required by this Plan, to the extent permissible under regulations (or other generally applicable guidance). In addition, a Participant's consent to immediate distribution may be provided through telephonic or electronic means, to the extent permissible under regulations (or other generally 32 GN 107589 Specimen 457(b) Plan Document GPLANLVL— CORRSPND Deferred Compensation Plan Ver 102011 62 applicable guidance). The Administrator also may use telephonic or electronic media to conduct plan transactions such as enrolling participants, making (and changing) salary reduction elections, electing (and changing) investment allocations, and other transactions, to the extent permissible under regulations (or other generally applicable guidance). GN 107589 GPLANINI, CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 M SECTION X AMENDMENTS 10.1 Amendment The Employer may at any time either prospectively or retroactively amend the Plan by notifying Participants of such action. The Employer shall not have the right to reduce or affect the value of any Participant's Account Balance or any rights accrued under the Plan prior to amendment. 10.2 Conformation The Employer shall amend and interpret the Plan to the extent necessary to conform to the requirements of Code Section 457 and any other applicable law, regulation or ruling, including amendments that are retroactive. In the event the Plan is deemed by the Internal Revenue Code to be administered in a manner inconsistent with Code Section 457, the Employer shall correct such inconsistency within the period provided in Code Section 457(b). 10.3 Plan Termination In the event of the termination of the Plan, all Account Balances shall be disposed to or for the benefit of each Participant or Beneficiary in accordance with the provisions of Section VI or Section VII as soon as reasonably practicable following the Plan's termination. The Employer shall not have the right to reduce or affect the value of any Participant's account or any rights accrued under the Plan prior to termination of the Plan. The Participant's or Beneficiary's written consent to the commencement of distribution shall not be required regardless of the value of his or her Account Balance. GN 107589 GI'LANLVL CORRSPND 34 Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 M SECTION XI TRUST FUND 11.1 Trust Fund All amounts in a Participant's or Beneficiary's Account Balance, all property and rights purchased with such amounts, and all income attributable to such amounts, property, or rights shall be held and invested in the Trust Fund in accordance with this Plan. The Trust Fund, and any subtrust established under the Plan, shall be established pursuant to a written agreement that constitutes a valid trust, custodial agreement, annuity contract, or similar agreement under the laws of the State. All investments, amounts, property, and rights held under the Trust Fund shall be held in trust for the exclusive benefit of Participants and their Beneficiaries and defraying reasonable expenses of the Plan and of the Trust Fund. Prior to the satisfaction of all liabilities with respect to Participants and their Beneficiaries, no part of the assets and income of the Trust Fund may be used for, or diverted to, for purposes other than for the exclusive benefit of Participants and their Beneficiaries. The Employer has no beneficial interest in the Trust Fund and no part of the Trust Fund shall ever revert to the Employer, directly or indirectly, provided, however, that a contribution or any portion thereof made by the Employer through a mistake of fact under Section 12.4 shall upon written request of the Employer, reduced by losses attributable thereto, shall be returned to the Employer. GN -107589 GPLANLVL CORRSPND 35 Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 65 SECTION XII MISCELLANEOUS 12.1 Non- Assignability Except as provided in Sections 12.2 and 12.3, no benefit under the Plan at any time shall be subject in any manner to anticipation, alienation, assignment (either at law or in equity), encumbrance, garnishment, levy, execution, or other legal or equitable process; and no person shall have power in any manner to anticipate, transfer, assign (either law or in equity), alienate or subject to attachment, garnishment, levy, execution, or other legal or equitable process, or in any way encumber his or her benefits under the Plan, or any part thereof, and any attempt to do so shall be void except to such extent as may be required by law. 1.2.2 Domestic Relation Orders The Employer shall establish reasonable procedures to determine the status of domestic relations orders and to administer distributions under domestic relations orders which are deemed to be qualified orders. Such procedures shall be in writing and shall comply with the provisions of Code Section 414(p) and regulations issued thereunder. Notwithstanding Section 12. 1, the Administrator may affect a Participant's Account Balance for a "qualified domestic relations order" as defined in Code Section 414(p), and those other domestic relations orders permitted to be so treated by the Administrator under the provisions of the Retirement Equity Act of 1984. The amount of the Participant's Account Balance shall be paid in the manner and to the person or persons so directed in the qualified domestic relations order. Such payment shall be made without regard to whether the Participant is eligible for a distribution of benefits under the Plan. 12.3 IRS Levy Notwithstanding Section 12.1, the Administrator may pay from a Participant's or Beneficiary's Account Balance the amount that the Administrator finds is lawfully demanded under a levy issued by the hlternal Revenue Service to the Plan with respect to that Participant or Beneficiary or is sought to be collected by the United States Government under a judgment resulting from an unpaid tax assessment against the Participant or Beneficiary. 1.2.4 Mistaken Contributions Notwithstanding any other provision of the Plan or the Trust Fund to the contrary, in the event any contribution of an Employer is made under a mistake of fact (and not a Plan operational error), such contribution may be returned to the Employer within one year after the payment of the contribution. Earnings attributable to the excess contribution may not be returned to the Employer, but losses attributable thereto must reduce the amount to be so returned. GN 107589 GPLANLVL— CORRSPND 36 Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 W 12.5 Employment Neither the establishment of the Plan nor any modification thereof nor the establishment of any account, nor the payment of any benefits, shall be construed as giving to any Participant or other person any legal or equitable right against the Employer except as herein provided; and, in no event, shall the terms or employment of any Employee be modified or in any way affected hereby. 12.6 Successors and Assigns The Plan shall be binding upon and shall inure to the benefit of the Employer, its successors and assigns, all Participants and Beneficiaries and their heirs and legal representatives. 12.7 Written Notice Any notice or other communication required or permitted under the Plan shall be in writing, and if directed to the Administrator shall be sent to the designated office of the Administrator, and, if directed to a Participant or to a Beneficiary, shall be sent to such Participant or Beneficiary at his or her last known address as it appears on the Administrator's record. To the extent permitted by law, regulation or other guidance from an appropriate regulatory agency, the Administrator, Employer or any other party may provide any notice or disclosure, obtain any authorization or consent, or satisfy any other obligation under the Plan through the use of any other medium acceptable to the Administrator. Such other medium may include, but is not necessarily limited to, electronic or telephonic medium. In addition, any communication or disclosure to or from Participants or Beneficiaries that is required under the terms of the Plan to be made in writing may be provided in any other medium (electronic, telephonic, or otherwise) that is acceptable to the Administrator and permitted under applicable law. 12.8 Total Agreement This Plan and Participant deferral election, and any subsequently adopted Plan amendment thereof, shall constitute the total agreement or contract between the Employer and the Participant regarding the Plan. No oral statement regarding the Plan may be relied upon by the Participant. 12.9 Gender As used herein the masculine shall include the neuter and the feminine where appropriate. 12.10 Controlling Law This Plan is created and shall be construed, administered and interpreted in accordance with Code Section 457 and the regulations thereunder, and under laws of the State as the same shall be at the time any dispute or issue is raised. If any portion of this Plan is held illegal, invalid or unenforceable, the legality, validity and enforceability of the remainder shall be unaffected. 37 GN 107589 Specimen 457(b) Plan Document GPLANLVL— CORRSPND Deferred Compensation Plan Ver 102011 67 IN WITNESS WHEREOF, the Employer has executed this Plan document this day of SEAL Attest: City of Tukwila By Name Title Title (Witness) GN 107589 GPLANLVI, CORRSPND 38 Specimen 457(b) Plan Document Deferred Compensation Plan Ver102011 i 457(b) PLAN DOCUMENT CERTIFICATION This form must be submitted to The Hartford along with your signed Specimen document. Employer Name: City of Tukwila Plan Name: City of Tukwila DCP Effective Date of Plan: November 1, 2011 Hartford Group Number: 107589 Please select one of the following below: O I, the undersigned employer representative, certify that the employer has adopted The Hartford's specimen 457(b) Plan Document without any modifications and have provided The Hartford with a copy of the adopted plan document. El I, the undersigned employer representative, certify that the employer has adopted The Hartford's specimen 457(b) Plan Document with modifications and have provided The Hartford with a copy of the adopted document. I understand that the modifications will need to be approved by The Hartford to ensure that they conform to our Contract and Administrative Services Agreement with The Hartford, and their record keeping system and product. The provisions we have modified are as follows: Plan Sections Name of Authorized Signer: (please print) Signature: GN 10789 GPLANLVI. CORRSPND Modifications Date: 70 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Jennifer Ferrer -Santa Ines, Senior Fiscal Coordinator DATE: November 29, 2011 SUBJECT: Revenue Generating Regulatory License (RGRL) Audit ISSUE The City implemented the Revenue Generating Regulatory License (RGRL) fee effective with its 2011 business license applications and renewals. An annual audit of the number of employees and or annual hours worked in Tukwila reported by businesses determines the accuracy of revenue received through RGRL fees. BACKGROUND On July 19, 2010 Council adopted Ordinance No. 2297 which implemented an RGRL fee of $55.00 per full -time equivalent employee. The RGRL was a fee in addition to any license fee paid to the City. Every person engaged in business within Tukwila is to pay a Revenue Generating Regulatory License fee based upon the current number of employees or number of employee hours worked in the City in the previous year. The amount of RGRL due can be determined using the standard method of taking the current number of employees and multiplying that by $55.00. A business can also use an alternative method of taking all annual hours worked in Tukwila the previous year and multiplying those hours by the RGRL multiplier of .028646. This multiplier is equivalent to one full -time employee working 1,920 hours or more. DISCUSSION Staff contacted the largest businesses in Tukwila employing greater than 200 employees to conduct routine fee verification to determine whether or not hours and or employees were being reported accurately for RGRL purposes. The process used to conduct the verification is as follows: 1) A list of selected Tukwila businesses with number of employees greater than 200 were contacted either by telephone, email, or both in order to conduct routine fee verification as mandated by Ordinance No. 2297. 2) It was explained to each business contacted that the City is conducting a routine verification of the RGRL business licensing fee calculation method. As a part of this verification process, the City asked the business entity to submit copies of its prior year quarterly Labor and Industries (L &I) reports. 71 INFORMATIONAL MEMO Page 2 3) For larger business entities with multiple locations throughout Washington State, the quarterly L &I reports are usually filed on a consolidated basis (i.e., the L &I reports are inclusive of all the entity's business locations and filed as an aggregate in which information is not readily available). Should this be the case, the City has been requesting that the business provide internally generated worksheets or documentation in support or in lieu of the L &I filing that would only be specific to the City of Tukwila. 4) Total number of worker hours divided by 1,920 hours per year for one full -time employee (FTE) equivalent results in the total number of RGRL FTEs multiplied by $55.00 per employee. An employee working 1,920 or more hours per year is counted as one full time employee for RGRL purposes. 5) Under reporting of employees by an error factor of more than 15% will be billed including a 20% penalty on the amount due. From the list of businesses verified, there was one organization that under reported total actual hours worked in Tukwila. This resulted in over $12,000 in RGRL fees that were not paid at the time of license renewal. This business has fully paid all outstanding RGRL fees as of October 24, 2011. RECOMMENDATION For information only. ATTACHMENTS 2011 RGRL Routine Verification Business Listing 72 CUST_NO ` - BUS_NAME ACCT_NO #`off,Employees FEE_AMT Notes /Comments /Findings as of 10/30/2011: American Medical Left voice msg to Mr. Gostelli to provide 4 of worker hours for RGRL business license fee portion. EDEN shows 68,459 hrs. Further investigation 00032708 Response 00001818 442 1,961 showed that AMR had reported additional hours above what they reported to the City causing an underpayment of 512,009. This was paid on 10-24-11 00034112 Boeing Co. 00001668 3797 208,835 00034109 Boeing Co. 00001665 1804 99,220 On 09/02/11, Ryan faxed their internal reports showing total worker hours of 12,366,708.50/1,920 = 6,441 FTE x $55.00 = $354,255 adj RGRL fee. EDEN shows 00034108 Boeing Co. 00001664 552 30,360 $352,935; diff = (0.37%). 00054576 BOEING COMPANY 00003194 264 14,520 00034115 BOEING EMPLOYEES CREDIT UNION 00000358 466 25,338 Based on BECU's actual 2010 L &I reports for Tukwila, only, the highest month with emp 4 shows 440 and for RGRL purposes, they reported 460.68876 emps under alt method with RGRL fee paid of $25,337.88; so, they have actually remitted in excess of actual L &I. 00034187 Carlisle Interconnect 00001677 600 27,885 Per L &I reports, total 2010 worker hrs = 1,055,466, or 549.722 FTEs x $55 = $30,234.71. EDEN RGRL shows 507 emps with fee paid of $27,885; diff of <7.7 %> or Techn. <52,350 >. 00034234 Cheesecake Factory 00002102 252 6,620 Spoke with Kevin Mounce on 09/19/11: For Tukwila location 2010 total 4 of L &I worker hrs reported = 270,243/1,920 = 140.7515625 FTEs x $55 = $7,741.34; EDEN shows 231,088.11 hrs /1,920 = 120.3583906 x $55 = $6,619.75; diff = (14.49%). This is COSTCO Optical Lab which is a separate bldg that manufactures the lenses for Optical Sales. Per telecon with Jackie Bacon, as of 12/29/10, there were 415 00034335 Costco Optical 00001883 401 16,694 emps at this location vs 401 they provided for the base lic fee. Have left a message on 8/30/11 for Michael Lynch to call me back with RGRL hrs info. Mr. Lynch is out of office until 09/07/11. As of 9/15/11: Contact is now Ben Kaiser, 425- 313 -6386; he is working with me on this. Optical division had 319 emps reported to L &I for 2010, they actually reported 303.53 FTEs to City; RGRL diff = (4.85 %) This is COSTCO Wholesale & Optical Sales. Per telecon with Ann Loonam, as of 12/29/10, there were 320 emps for this division vs 274 they provided for the base 00034337 Costco Wholesale 00002580 274 14,745 tic fee. Have left a message on 8/30/11 for Michael Lynch to call me back with RGRL hrs info. Mr. Lynch is out of office until 09/07/11. As of 9/15/11: Contact is now Ben Kaiser, 425 - 313 -6386; he is working with me on this. Wholesale division had 301 emps reported to L &I for 2010, they actually reported 268.08 FTEs to City; RGRL diff = (10.94 %) 00034790 Hartung Glass Industries 00000989 252 13,860 Per 2010 L &I reports for Tukwila, total worker hrs = 516,136/1,920 = 268.821 FTEs x $55 = $14,785.16; Per EDEN RGRL: 252 FTEs x $55 = $13,860; dill of Inc <6.25 %> 00034819 Highline Med Ctr Spec Campus 00001829 200 9,910 Rec'd HMC's faxed info of total 212 employees EDEN shows 200 = (5.66 %) diff and total worker hours of 340,014; EDEN shows 345,955 diff = 1.75% 00032572 J.C. Penney Co. 00001268 350 11,583 Rec'd faxed info from Christy on 9/15/11. This was just copy of email dated 01/17/2011 she had recd from her HR Team with 404,354.10 productive emp hours worked which agrees to EDEN RGRL. 00032812 Macy's ( 408) 00001270 327 17,985 Rec'd fax info from Lisa Price on 9/19/11. The highest # of emps for 12 -month period was 370 (some might have been PTs), lowest was 291. Macy's used all method in calculating their RGRL fee at 327 FTEs: 327/370 = 88.3783783 %; diff = (11.62 %) 00032978 Nordstrom, Inc. ( 45) 00001266 268 14,740 Rec'd info from Komny on 9/01/11: Total 2010 hours worked shows 533,219/1,920 = 277.72 FTEs x $55 = $15,274.50; EDEN shows 268 FTEs and $14,740.00; diff = (3.50 %). Spoke with Mr. Boman on 09/19/11 as follow up to request 2010 L &I reports for their Tukwila location. He asked for City's requirements in order to do so. Emailed 00033277 Red Dot Corp. 00001598 286 15,774 copy of Ord. No. 2297 to him and requested that the 2010 L &I reports be faxed to my attention on or before Friday, 09/23/11. Recd L &I info from Mr. Boman: Total 2010 Worker Hours as reported to L &I for Tukwila business location = 640,759/1,920 = 333.7286458 FTEs x $55 = $18,355.08; EDEN = 286.8 FTEs x $55 = $15,774; diff = (14.062 %) 00056402 Things Remembered ( #840) 00001749 217 174 Pass on contacting this business. New cust #00056402 and new activity #00003992. This business only has 3 emps with # of RGRL FTE of 3.16. As per EDEN system, this is still in "pending" status as of 08/31/11. Previously had incorrect # of employees. N/A 00033864 Unified Grocers 00001435 200 4,992 Recd from Steve Johnson on 09/12/11 via email: For 2010 they showed total worker hours of 145,658.25/1,920 = 75.86367187 FTEs x $55 = $4,172.50; Per EDEN RGRL hours = 174,276/1,920 = 90.76875 FTEs x $55 = $4,992.28; Percentage diff: 16.42% over 00033870 United Parcel Service 00001937 294 4,568 Per UPS' 2010 internal reports for Tukwila rec'd 9/01/11, total worker hrs = 159,448.78/1,920 = 83.05 FTEs x $55 = $4,567.54 (This agrees to EDEN); Additionally, UPS' 2010 internal reports show correct 4 emps of 294 for base business license fee. 00033878 University of Phoenix 00001331 204 4,036 Rec'd info from both Joanne Hollera.n & Emily Gonzalez. Per EDEN: 2010 RGRL worker hrs = 140,888/1,920.= 73.37916666 FTEs x $55 = $4,035.85; Per Licensee actual worker hrs = 140,150.70/1,920 = 72.99515625 FTEs x $55 = $,4,014.73; Diff = +0.53 %. 74 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: FROM: DATE: SUBJECT Mayor Haggerton Finance and Safety Committee Peggy McCarthy, Interim City Administrator November 30, 2011 Miscellaneous Revenue Report for September 2011 Schedule I -Sales Tax in 1,000's Sales Receipt 2010 2011 2011 -2011 Actual Over (Under) 2011 Estimate-- Month Month Actual Estimated Actual Month YTD Month YTD Jan Mar 1,034 1,080 1,039 (41) (41) -3.80% -3.80% Feb Apr 1,006 1,033 1,043 10 (31) 0.97% -1.47% Mar May 1,157 1,179 1,453 274 243 23.24% 7.38% Apr June 1,070 1,102 1,252 150 393 13.61% 8.94% May July 1,067 1,138 1,278 140 533 12.30% 9.63% June Aug 1,249 1,243 1,386 143 676 11.50% 9.98% July Sept 1,251 1,299 1,281 (18) 658 -1.39% 8.15% Aug Oct 1,216 1,176 1,216 40 698 3.40% 7.55% Sept Nov 1,357 1,185 1,327 142 881 11.98% 8.05% Oct Dec 1,082 1,036 Nov Jan12 1,202 1,101 Dec Feb12 1,889 1,628 Totals 14,580 14,200 11,275 Mitigation Received 917 12,192 119.92% of Budget Incl. Mitigation September sales tax collected from construction NAICS codes 236, 237 and 238 totaled $1 -028 (thousand). Sales tax collections for September were $30K below the same month in the previous year. The decline is due to an $70K adjustment made by the Department of Revenue reducing the November remittance. This resulted from a DOR processing error made in June and reflected in that remittance. Without the adjustment, the September sales tax collections would have been $40K more than the same month in the prior year. Even with the adjustment, the September sales tax collections were $142K more than budget representing a 11.98% positive variance. Year -to -date, collections are 8.05% greater than budget and 8.34 greater than the prior year year -to -date collections. Excluding one -time money from new construction, collections are 4.71 ahead of last year's collections to date. Including mitigation payments, sales tax collections are currently at 119.92% of budget for the year. 75 INFORMATIONAL MEMO Page 2 Schedule II shows the year -to -date sales tax from the top ten industry classifications. Electronics and Appliances had the highest year over year increase at $384,040 or 56 and Construction of Buildings had an increase of $224,718 or 71 The largest decline of $151,600 or 13.8% occurred with the Wholesale Trade, Durable Goods category. Schedule 11 Name 423 Wholesale Trade, Durable Goods '452 General Merchandise Stores YTD YTD Dollar Group Name Current Prior Diff. 448 Clothing and Accessories 1,435,788 1,412,724 23,064 452 General Merchandise Stores 1,396,684 1,439,361 (42,677) 443 Electronics and Appliances 1,053,382 669,342 384,040 722 Food Services, Drinking Places 991,603 1,007,646 (16,043) X 423 Wholesale Trade, Durable Goods 796,701 948,301 (151,600) '236 Construction of Buildings 656,334 431,616 224,718 X 441 Motor Vehicle and Parts Dealer 449,160 447,358 1,802 P 451 Sporting Goods, Hobby, Books 448,770 448,556 214 444 Building Material and Garden 377,643 386,918 (9,275) 721 Accommodation 359,007 327,713 31,294 Mitigated NAICS Code As illustrated above, three of the top ten merchant categories have declined versus prior year. Of the top ten industry classification codes, all but two are ones for which we receive streamlined sales tax mitigation. Schedule III shows the ten largest declines in sales tax revenue for industries with over $10,000 collected year -to -date. Schedule III Group Name 423 Wholesale Trade, Durable Goods '452 General Merchandise Stores 1 517 Telecommunications "336 Transportation Equipment Man 722 Food Services, Drinking Places 1 811 Repair and Maintenance X 444 Building Material and Garden `323 Printing and Related Support 442 Furniture and Home Furnishings P 424 Wholesale Trade, Nondurable Mitigated NAICS Code YTD YTD Dollar Current Prior Diff. 796,701 948,301 (151,600) 1,396,684 1,439,361 (42, 677) 251,846 284,343 (32,496) 88,583 118,162 (29, 579) 991,603 1,007,646 (16,043) 63,293 78,714 (15,420) 377,643 386,918 (9,275) 32,831 39,261 (6,431) 271,656 277,092 (5,435) 76,654 81,969 (5,315) Attached is a Sales Tax Summary comparing year -to -date 2011 vs. 2010 by major NAICS codes. Below is Schedule IV which shows quarterly gambling tax receipts for last year, and the current year to date. WAFIN ProjectslSales Tax In formation120111Info Memo Sales Tax 11282011.docx 76 INFORMATIONAL MEMO Page 3 Schedule IV Gambling Tax 2010 2011 Month Actual Actuals Sales 2010 2011 2011 2011 Actual Over (Under) 2011 Estimate Quarter Actual Estimated Actual Month YTD Month YTD Jan Mar 502,831 626,451 466,375 (160,076) (160,076) 25.55% 25.55% Apr Jun 483,843 602,795 377,513 (225,282) (385,359) 37.37% 31.35% Jul Sep 390,078 485,978 380,592 (105, 386) (490, 745) 21.69% -28.61% Oct Dec 549,647 684,777 57,325 4,508 (64,836) Totals $1,926,399 $2,400,000 1,224,479 50,835 (17,104) (81, 940) 25.18% includes gamblingtaxfromcard games only. Gambling receipts for the third quarter were reported with the August Sales Tax report. The fourth quarter tax receipts are due January 31, 2011. One casino still owes $97K on their second quarter taxes. We have contacted the casino and continue to attempt to collect this amount. Below is Schedule V which shows monthly admission tax receipts for the prior year and current year to date. Schedule V Admissions Tax Sales 2010 2011 Month Actual Estimated Jan 52,751 57,532 Feb 39,232 42,788 Mar 51,861 56,562 Apr 39,294 42,855 May 35,365 38,570 June 48,428 52,818 July 62,293 67,939 Aug 42,284 46,116 Sept 37,853 41,284 Oct 27,638 30,144 Nov 35,594 38,820 Dec 50,036 54,571 Totals 522,628 570,000 excludes golf course admissions tax 373,978 Admission tax receipts are currently 21.53% below budget for the year, and 14.42% below prior year actual receipts. The decline in comparison to the same month in the prior year improved from the September results. No payments have yet been received the Fly indoor skydiving facility near the mall. Please let me know if you have any comments or questions. Thank you. WAFIN ProjectslSales Tax Information12011\Info Memo Sales Tax 11282011.docx 77 Actuals 2011 2011 Actual Over (Under) 2011 Estimate Actual Month YTD Month YTD 31,217 (26,315) (26,315) 45.74% 0.00% 30,403 (12,385) (38,701) 28.95% 38.58% 39,696 (16,866) (55,566) 29.82% 35.42% 28,705 (14,150) (69,717) 33.02% 34.90% 38,944 373 (69,343) 0.97% 29.10% 57,325 4,508 (64,836) 8.53% 22.27% 50,835 (17,104) (81, 940) 25.18% 22.82% 42,963 (3,153) (85,093) -6.84% 21.00% 28,108 (13,176) (98,270) 31.92% -22.01% 25,782 (4,362) (76,316) 14.47% 21.53% 373,978 Admission tax receipts are currently 21.53% below budget for the year, and 14.42% below prior year actual receipts. The decline in comparison to the same month in the prior year improved from the September results. No payments have yet been received the Fly indoor skydiving facility near the mall. Please let me know if you have any comments or questions. Thank you. WAFIN ProjectslSales Tax Information12011\Info Memo Sales Tax 11282011.docx 77 OR 1 1 SALES TAX SUMMARY September 2011 (Received in November) NAICS CONSTRUCTION 10 TOTAL 236 Construction of Buildings 588,919 237 Heavy & Civil Construction 37,857 238 Specialty Trade Contractors 290,486 TOTAL CONSTRUCTION $ 917,262 $ Overall Construction Change from Previous Year 10 YTD 431,616 17,374 201,175 650,166 $ 11 YTD 656,334 51,357 321,142 1,028,833 0378,667 YTD Diff 52.1% 195.6% 59.6% 58.2% NAICS AUTOMOTIVE 10 TOTAL 441 * Motor Vehicle & Parts Dealer 596,727 447' Gasoline Stations 67,583 TOTAL AUTOMOTIVE $ 664,310 $ Overall Automotive Change from Previous Year NAICS RETAIL TRADE 10 TOTAL 10 YTD 447,358 50,522 497,879 $ 10 YTD 11 YTD 449,160 52,826 501,986 $4,107 YTD % Diff 0.4% 4.6% 11 YTD 0.8% % Diff YTD MANUFACTURING 10 TOTAL 10YTD 11 YTD % Diff 442* Furniture & Home Furnishings 374,775 277,092 271,656 -2.0% 443' Electronics & Appliances 1,003,415 669,342 1,053,382 57.4% 311 Food Manufacturing 5,995 3,530 3,008 -14.8% 312 Beverage & Tobacco Products -895 -2,034 2,612 -228A% 313 Textile Mills 88 72 623 760.2% 314 Textile Product Mills 13,503 10,745 8,371 -22.1% 315 Apparel Manufacturing 38 17 446 2457.0% 316 Leather & Allied Products 2 2 7 261.9% 444* Building Material & Garden 499,394 386,918 377,643 -2.4% 445* Food & Beverage Stores 101,958 68,803 93,269 35.6% 446* Health & Personal Care 178,919 125,346 153,058 22.1 % 448' Clothing & Accessories 2,021,704 1,412,724 1,435,788 1.6% 451* Sporting Goods, Hobby, Books 648,678 448,556 448,770 0.0% 452* General Merchandise Stores 2,068,263 1,439,361 1,396,684 -3.0% 321* Wood Product Manufacturing 1,627 1,296 1,414 9.1% 453* Miscellaneous Store Retailers 481,324 339,150 345,090 1.8% 322* Paper Manufacturing 21,585 16,174 14,992 -7.3% 454' Nonstore Retailers 111,045 75,846 95,478 25.9% 323* Printing & Related Support 54,341 39,261 32,831 -16.4% TOTAL RETAIL TRADE $ 7,489,475 $ 5,243,138 $ 5,670,819 324 Petroleum & Coal Products 325 Chemical Manufacturing 326 Plastic & Rubber Products 3,062 7,458 3,142 2,659 5,570 2,439 1,273 7,359 3,007 -52.1% 32.1% 23.3% 327* Nonmetallic Mineral Products 331 Primary Metal Manufacturing 332 Fabricated Metal Mfg Products 333 Machinery Manufacturing 3,667 857 5,337 523.1% Overall General Retail Change from Previous Year SERVICES 725 -2,641 10.120 388 -3,666 8,167 187 2,557 1,820 -51.8% -169.8% -77.7% 334' Computer & Electronic Products 5,592 3,262 15,529 376.1% 335 Electric Equipment, Appliances 336 Transportation Equipment Mfg 337' Furniture & Related Products 339' Miscellaneous Manufacturing 523 290,984 10,326 11,140 372 118,162 7,373 8,427 223,073 $ TOTAL MANUFACTURING $ 440,381 $ Overall Manufacturing Change from Previous Year TRANSPORTATION 8 WAREHOUSING 481 Air Transportation 482 Rail Transportation 484 Truck Transportation 485 Transit and Ground Passengers 487 Scenic and Sightseeing Tran 488 Transportation Support 491 Postal Services 492 Couriers 8 Messengers 493' Warehousing & Storage TOTAL TRANSP & WHSING $ 10 TOTAL 4 731 344 17,813 0 29,089 0 372 957 49,309 $ 145 88,583 6,724 8,159 204,984 (818,089) Overall Transportation Change from Previous Year WHOLESALE TRADE 10 TOTAL 10 YTD 0 280 172 13,456 0 22,005 0 265 753 36,930 $ 10 YTD -61.1% -25.0% -8.8% -3.2% 11 YTD 44 515 3,920 13,137 659 22,621 223 22 725 41,866 $4,936 11 YTD -8.1% YTD % Diff 0.0% 84.1% 2185.7% -2.4% #DIV /0! 2.8% #DIV /0! -91.6% -3.7% 51X Information 52X Finance & Insurance 53X Real Estate, Rental, Leasing 541 Professional, Scientific, Tech 551 Company Management 56X Admin, Supp, Remed Svcs 611 Educational Services 62X Health Care Social Assistance 71X Arts & Entertainment 10 TOTAL 553,763 54,281 420,554 183,693 250 111,875 61,029 74,501 110,146 10 YTD 388,884 $427,681 39,849 311,764 125,117 225 79,977 46,835 52,663 88,608 11 YTD 388,659 55,975 322,888 143,789 106 107,976 43,045 72,443 94,192 8.2% YTD % Diff -0.1% 40.5% 3.6% 14.9% -52.8% 35.0% -8.1% 37.6% 6.3% 72X' Accommodation & Food Svcs 1,769,600 1,335,359 1,350,610 1.1% 81X Other Services 92X Public Administration TOTAL SERVICES 185,696 26,395 $ 3,551,783 $ Overall Services Change from Previous Year MISCELLANEOUS 13.4% YTD % Diff 423' WhlsTrade- Durable Goods 1,236,905 948,301 796,701 -16.0% 424' Whls Trade - Nondurable Goods 112,063 81,969 76,654 -6.5% 425* Wholesale Electronic Markets 2,781 2,027 1,481 -26.9% WHOLESALE TRADE TOTAL $ 1,351,748 $ Overall Wholesale Change from Previous Year Sales Tax Mitigation NAICS Codes 11/30/2011 1,032,296 $ 874,836 ($157,461) -15.3% 10 TOTAL 000 Unknown 43 111 -115 Agriculture, Forestry, Fishing 313 211 -221 Mining & Utilities 14,355 999 Unclassifiable Establishments 100,745 MISCELLANEOUS TOTAL $ 115,457 $ Overall Miscellaneous Change from Previous Year Page 1 10 TOTAL 141,026 20,326 2,630,634 $ 10 YTD 1 204 12,582 78,965 91,752 $ 10 YTD 130,049 27,819 2,737,552 $106,919 -7.8% 36.9% 11 YTD 4.1% YTD % Diff 0 - 100.0% 4.4% -80.3% 168.1% 213 2,484 211,720 214,417 $122,665 11 YTD 133.7% YTD % Diff GRAND TOTALS 614,579,726 $10,405,869 611,275,293 Grand Total Change from Previous Year Grand Total Change from Previous Year - Without New Construction $869,425 $490,758 IUK Sales la. Rpt 201109As, 8.36% 5.03% RE