RESOLUTION NO.   2012-1  

ROTH CONTRIBUTION AMENDMENT TO
TOWN OF LEO-CEDARVILLE
457 GOVERNMENTAL PLAN AND TRUST

WHEREAS, The Town Council for the Town of Leo-Cedarville previously adopted a deferred compensation plan pursuant to Section 457 of the Internal Revenue Code, which established a 10% employer match for all distributions by eligible salaried employees into the plan; and

WHEREAS, the Small Business Jobs Act of 2010 (“SBJA”) allows government sponsored 457(b) plans to give an opportunity to plan participants to treat elective deferrals as post-tax Roth contributions; and

WHEREAS, the Town Council for the Town of Leo-Cedarville wishes to provide an additional incentive to its employees to voluntarily to set aside and invest portions of their current income to meet their future financial needs, and to maximize the investment potential of such contributions; and

NOW THEREFORE, be it resolved by the Town Council of the Town of Leo- Cedarville, Indiana that:

That the Town’s 457 plan shall be amended to allow plan participants to treat deferred contribution payments as post-tax Roth contributions in compliance with the requirements of 26 U.S.C. §402A.

Eligible employees are to be provided the opportunity to make designated Roth contributions in lieu of all or a portion of elective deferrals the employee is otherwise eligble to make under the Town’s 457 plan.

The Town’s plan shall establish separate “Roth accounts” for the designated Roth contributions of each employee and any earnings properly allocable to such contributions and the Town’s plan administrator shall maintain separate recordkeeping with respect to each such account.

The Town Council President and Town Manager are hereby authorized and directed to execute all necessary plan documents to amend the Town’s 457 plan to allow for Roth contributions in a manner that complies with 26 U.S.C. §402A and any other applicable provisions of the Internal Revenue Code.

Passed and adopted by the Town Council of the Town of Leo-Cedarville, Indiana on this   3rd   day of   January  , 2012.

  John Clendenen        
John Clendenen
President

  Tim Richards             
Tim Richards
Council Member

  Kevin Veatch             
Kevin Veatch
Council Member

  Paul Steffens            
Paul Steffens
Council Member

  Ted Garton               
Ted Garton
Council Member

      ATTEST: John Eastes                
John Eastes
Clerk-Treasurer