Title
Resolution - Approval of Amendments and Restatement of Employees' 401(k) Savings Plan - R Smith
Other Info
Submitted By: Audri Nelson on behalf of Wes Burns
Department: Human Resources
Financial Impact and Cost/Benefit Considerations: Anticipated cost of $44,608 for ("true-up") plan year employer matching contribution adjustment; anticipated $454,000 for any additional employer match on employee contributions of bonus; and anticipated $212,500 for employer match on employee contributions of accrued PTO trade-outs. Anticipated amounts are subject to federal limits currently in effect at this time under our current Plan that includes amounts for which PEC currently may match to employees' accounts.
Discussion
The Cooperative wishes to amend and restate the Pedernales Electric Cooperative, Inc. Employees' 401(k) Savings Plan document to incorporate several prior amendments to the Plan, clarify the Plan's current administrative practices, and make several optional design changes to the Plan.
Body
WHEREAS, effective January 1, 1968, Pedernales Electric Cooperative, Inc. ("Plan Sponsor"), established, for the exclusive benefit of its employees and their beneficiaries, the Pedernales Electric Cooperative, Inc. Employees Defined Contribution Savings Plan ("Plan"), a money purchase pension plan intended to qualify under Sections 401(a) and 501(a) of the Internal Revenue Code;
WHEREAS, effective December 31, 2001, the Plan Sponsor amended the Plan to add a qualified cash or deferred arrangement to the Plan as permitted to a "rural cooperative plan" under Section 401(k)(7)(A) of the Internal Revenue Code, eliminated the fixed employer contribution previously provided for under the Plan, so that it became a profit-sharing plan rather than a money purchase pension plan as of January 1, 2002, and renamed the Plan the Pedernales Electric Cooperative, Inc. Employees' 401(k) Savings Plan;
WHEREAS, under the terms of the Plan, the Plan Sponsor has the continuing ...
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