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Home My WebLink About135-92 RESOLUTIONa . • RESOLUTION NO. 135-99 A RESOLUTION ADOPTING AN AMENDED AND RESTATED DEFERRED COMPENSATION PLAN AND EMPLOYEE RETIREMENT SAVINGS PLAN. 6 WHEREAS, the City of Fayetteville has employees rendering valuable services; and WHEREAS, the adoption of the amended and restated Deferred Compensation Plan and the Employee Retirement Savings Plan serves the interest of the employer by enabling it to provide reasonable retirement security for its employees and by assisting in attracting and retaining competent personnel; and WHEREAS, it is desired that all non Civil Service employees now have the same opportunity and options to provide for their retirement security within the framework of common plans; and WHEREAS, the adoption of the amended and restated Deferred compensation Plan and the Employee Retirement Savings Plan will provide each employee additional flexibility in meeting their individual retirement objectives; and WHEREAS, the City of Fayetteville has determined that the Deferred Compensation Plan and the Employee Retirement Savings Plan satisfies the above objectives; NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS; Section 1. That the Board of Directors hereby adopts the Deferred Compensation Plan and Trust and the Retirement Savings Plan and Trust attached hereto as exhibit "A" and made a part hereof, contingent upon employee approval. Section 2. That the Mayor is hereby authorized to execute such other documents as may be necessary to obtain a favorable letter of determination from the Internal Revenue Service. PASSED AND APPROVED this 1st day of September , 199. INTERNI REREREE SERVICE DISTRICT DIRECTOR P. 0. 10X eI1 ATLANTA, CA 30370 Date: —/m; f3 CITY OF FAYETTE'JILLE 113 WEST MOUNTAIN FAYET(TE!!ILIE. AR 72'01 Dear Applicant: MICI O nn.MEc IEPARTNENt It Tilt TIMMY 'JAN 1- 8 193 S7-)1.) csV-t 4170\S- lJ0\.a.t ,� s G� fik (J_ fteGai `• rilF„Employer Identification dumber: ,h.' Qvii. 4..ct'i 6010962 File Folder Number: ( i j5 '10003321 Person to Contact: PATRICK RYAN Contact Telephone Number: '101 331-0913 Plan Name: CITY OF FAYETTE'1ILLE EMPLOYEE RETIREMENT SAVINGS PLAN Plan Number: 002 JAN 15 19°3 FINANCE DEPT• We have tide a favorable determination on your plans identified above, bated on the intonation supplied. Please keep this letter in your permanent recordt. Continued qualification of the plan under its present form will depend on it; effect in operation. (See Lection 1.901-1(b)(3) ot.4ne Income Tom Regulations.) We will review the status of the plan in^ope ntien perlg4icelly The enclosed document eaplaini the iignificance of this fsv•rsbi,.. determination letter, points out. Jose features that say afflasMtlte qu.ti11e4 status of your employee retirement plan, and provides information on tlti reporting ?elution!' for your plan. It also describes some events t t , automatically nullify it. II is very important that you read the pub) ytien.. This letter relates only to the flatus of your plan under the Internal Revenue Code. It ieilii a determination regarding the effect of other federal or local statutes. • .. Thif determination letter is applicable for the amendsent(s) adopted on September 1,1992. In accordance with your request, this letter does not consider whether the n ondiacrisination requirements of sections 901(a)(9)r.101(a)(17), 901(1112 0 101(1), 110(c)(2), 111(r), and 111(s) have been satisfied. This lotto soy not be relied on for plan years beginning on or after the Later of January It Ittit o r 90 days after the.e►lning of the first legislative session beglaninfien 1r after January 1r 1996, •t the governing body with authority to emend till pian, it that body does nit meet continuously. Ne have sent a copy of this letter to you, representative es indiO%. lar - let the power of attorney, Letter 035(00/CC) i -2 - CITY OF FAYETTEVILLE • If .?au have questions concerning this matter, plesae contact the person chose name and telephone flusher are aboun above. Enclosures: Publication 7°I PABA 515 Sincerely yourad .r` -?"'T 4tilliame District Director letter 835(D0%CDI • • • PIM SPONSOR IRM ADMISTRATCOI TRUSTEE TWOS Mal Ilii GUISE Or IMPLOTME Y1DY=CNOICE CF RM/ RiMLlICIMEDY WPM SCHEDULE POtMIED MREIIAVOLE CALCULATED MEW NORM. 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Manny 1% bas ply MOM* No Yr prose NNS tame star..lrhelan b a 401 sobs of are alias stay r sari* Sava IIIA upon Awrana l Earpalr eribaona baba bwlas tormbaa. not SON No TNS a- raw lal.bym Sand SI ha• flew 1 -' CITY OF FAYETTEVILLE EMPLOYEE RETIREMENT SAVINGS PLAN TABLE OF CONTENTS ARTICLE 1 DEFINITIONS ARTICLE 2 ELIGIBILITY 2.01 Initial Eligibility 2.02 Eligibility Requirements 2.03 Termination and Reemployment ARTICLE 3 EMPLOYER CONTRIBUTIONS 3.01 Employer Contribution ARTICLE 4 EMPLOYEE CONTRIBUTIONS 4.01 Additional Voluntary Contribution 4.02 Withdrawal of Employee Contribution Account 4.03 Rollover Contributions ARTICLE 5 ACCOUNTS 5.01 Establishment of Separate Accounts 5.02 Investments 5.03 Allocation of Earnings and Losses 5.04 Statement to Participants 5.05 Unclaimed Account Procedure ARTICLE 6 ARTICLE 7 ARTICLE 8 VESTING OF PARTICIPANTS' INTEREST 6.01 Vesting of Employee Contribution, Rollover and Employer Contribution Accounts RETIREMENT, DISABILITY OR TERMINATION OF EMPLOYMENT 7.01 Normal Retirement 7.02 Later Retirement 7.03 Alternate Retirement Age 7.04 Distribution Upon Retirement 7.05 Disability 7.06 Termination of Employment 7.07 Benefit Amount DEATH BENEFITS 8.01 Death Benefit 8.02 Benefit Amount 8.03 Designation of Beneficiary r i ARTICLE 9 ARTICLE 10 ARTICLE 11 DISTRIBUTION OF BENEFITS 9.01 Effect Of Distribution 9.02 Information To Be Furnished To Plan Administrator 9.03 Optional Payment Forms 9.04 Distribution After Death of Participant INSURANCE, LOANS AND WITHDRAWALS 10.01 Life Insurance 10.02 Loans 10.03 Withdrawals Employer Contribution Account 10.04 Hardship Withdrawals from Employee Contribution Account AMENDMENT, TERMINATION OR MERGER OF PLAN 11.01 Right of Employer to Amend Plan 11.02 Obligation of Employer 11.03 Termination of Plan 11.04 Distribution on Termination of Plan 11.05 Merger of Plan ARTICLE 12 NONASSIGNABILITY 12.01 General 12.02 Domestic Relations Order ARTICLE 13 ARTICLE 14 ARTICLE 15 MISCELLANEOUS PLAN PROVISIONS 13.01 Participant's Rights 13.02 Headings and Subheadings 13.03 Interpretation 13.04 Successors and Assigns 13.05 Successor Employer PLAN ADMINISTRATOR 14.01 Designation and Acceptance 14.02 Resignation and Removal 14.03 Powers 14.04 Actions 14.05 Expenses 14.06 Claim Procedure 14.07 Indemnification of the Plan Administrator REQUIRED CODE PROVISIONS 15.01 Required Limitations on Allocations Pursuant to § 415 of Code 15.02 Required Maximum Payout Time Pursuant to § 401(a)(14) of Code 4 CITY OF FAYETTEVILLE EMPLOYEE RETIREMENT SAVINGS PLAN City of Fayetteville, an Arkansas municipality incorporated under the laws of the State of Arkansas, has amended and restated its Money Purchase Pension Plan, originally established June 1, 1980, under which there exists a Trust Fund to which contribu- tions shall be made and from which benefits shall be paid in accordance with the terms and conditions thereof. The amended and restated Money Purchase Pension Plan and Trust has been approved by the legally constituted authority of Employer for the primary purpose of providing retirement income to Participants and is intended to qualify under $ 401 and $ 501 of the Internal Revenue Code of 1986. The terms and conditions of the Plan and Trust are as follows: ARTICLE 1. DEFINITIONS As used in this document, the following terms shall have the indicated meanings: 1.01. "ACCOUNT" or "ACCRUED BENEFIT" shall mean the market value of the amounts in a Participant's Employer Contribution Account, Employee Contribution Account and Rollover Account. These amounts shall constitute a Participant's entire interest in the Plan, including any income, gains, losses, increases or decreases in market value attributable to the Employer's invest- ment of Employer and Employee Contributions to this Retirement Savings Plan, and further reflecting any distributions to the Participant or the Participant's Beneficiary and any fees or expense charged against such Participant's Account. 1.02. "ALTERNATE RETIREMENT AGE" shall mean the age at which the Participant elects to separate from service. This election may not be earlier than age 55 nor later than age 70h. 1-1 r 1.03. "ANNIVERSARY DATE" shall mean the last day of each Plan Year which is coincident with a calendar year. 1.04. "BENEFICIARY" shall mean the person, persons, or other legal entity designated by the Participant who under the Plan becomes entitled to receive a Participant's interest upon his or her death. 1.05. "CODE" shall mean the Internal Revenue Code of 1986, as amended. 1.06. "COMPENSATION" shall mean the base compensation paid to the Employee by the Employer for the Plan Year that is subject to federal income tax withholding, plus elective contributions to any cafeteria plan under Section 125 of the Code or deferred compensation under Section 457 of the Code, excluding overtime pay, bonuses, commissions and expense account allowances. For Plan Years beginning after December 31, 1988, compensation shall not include amounts in excess of $200,000 (or such greater amount as may be determined by the Secretary of the Treasury). 1.07. "DISABILITY" shall mean the total and permanent incapacity of a Participant to engage in any substantial gainful activity, as determined by a qualified physician. • 1.08. "EFFECTIVE DATE" shall mean the 1st day of 1.09. "ELIGIBLE EMPLOYEE" shall mean any Employee classi- fied as regular full time who: (a) has completed one (1) Year of Service and has attained a minimum age of twenty (20) years and (b) is not an ineligible employee. Ineligible employees are (1) Employees who are participants (or would be, if eligibility requirements were met) in any Employer -funded Police Pension Plan or Fire Pension Plan, or (2) Employees whose employment is governed by the terms of a collective bargaining agreement between Employee representatives and the Employer under which retirement benefits were the subject of good faith bargaining between the parties (unless such agreement expressly provides that such employees will be eligible to participate in this Plan). 1.10. "EMPLOYEE" shall mean any person on the payroll of the Employer whose wages from the Employer are subject to with- holding for the purposes of Federal income taxes and the Federal Insurance Contributions Act. A person employed as an independent contractor shall not be an Employee. 1-2 1 1.11. "EMPLOYEE CONTRIBUTION ACCOUNT" shall mean an indi- vidual account maintained to record each Participant's interest in the Trust Fund attributable to mandatory and voluntary employee contributions, and earnings on such account. 1.12. "EMPLOYER" shall mean City of Fayetteville, Arkansas. 1.13. "EMPLOYER CONTRIBUTION ACCOUNT" shall mean an individual account maintained to record each Participant's interest in the Trust Fund attributable to the Employer's contri- bution under this Plan, and earnings on such account. 1.14. "HIGHLY COMPENSATED EMPLOYEE" shall mean any Employee who, during the determination year or the look -back year (A) was at any time a five -percent owner; (B) received compensation from Employer in excess of $75,000 (as adjusted for cost -of -living); (C) received compensation from the Employer in excess of $50,000 (as adjusted for cost -of -living) and was in the top - paid group (generally the top 20% of Employees by pay) of Employees for such Plan Year; or (D) was an officer of the Employer and received com- pensation greater than 50 percent of the amount in effect under Code Section 415(b)(1)(A) for such year. For purposes of applying any nondiscrimination test required under the Plan, any family member of a 5% owner or a Highly Compensated Employee who is in the top 10 Employees by compensa- tion, shall not be treated as a separate Employee; rather, Compensation of the family member will be aggregated with that of the Highly Compensated Employee. For this purpose, "family members" include the Employee's spouse, lineal ascendants and descendants and spouses of such ascendants and descendants. An Employee described in (8), (C) or (D) above shall not be a Highly Compensated Employee for the current year unless he or she meets such requirements in the current year or he met such requirements for the preceding Plan Year and is one of the 100 Employees receiving the most compensation during the current Plan Year. The number of officers is limited to fifty (50) lesser, the greater of three (3) employees or 10% of If no officer satisfies the compensation requirement 1-3 (or, if employees). in (D), the r highest paid officer for such Plan Year shall be treated as a Highly Compensated Employee. A former Employee shall be treated as a Highly Compensated Employee if such Employee separated from service prior to the Plan Year, performs no service for the Employer during the Plan Year and was a Highly Compensated active Employee for either the separation year or any Plan Year ending on or after the Employee's 55th birthday. Employers aggregated under Section 414(b), (c), (m) or (o) are treated as a single employer. The rules of Section 414(q) shall apply in determining who is a Highly Compensated Employee. Any person who is not a Highly Compensated Employee under the Treasury Regulations will not be treated as a Highly Compensated Employee under this Plan. For purposes of determining whether an Employee is a Highly Compensated Employee, the determination year is the Plan Year, and the look -back year is the 12 -month period immediately preced- ing the determination year. However, if the Employer elects, the look -back year may be the calendar year ending with or within the determination year. 1.15. "HOUR OF SERVICE" shall mean an Hour of Service as defined in paragraphs (a), (b), and (c) below. The Employer may round up hours at the end of a computation period or more fre- quently. (a) An Hour of Service is each hour for which an Employee is paid, or entitled to payment, for the performance of duties for the Employer during the applicable computation period. (b) An Hour of Service is each hour for which an Employee is paid, or entitled to payment, by the Employer on account of a period of time during which no duties are performed (irrespective of whether the employment relationship has terminated) due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence. Notwith- standing the preceding sentence, (i) no more than 501 Hours of Service shall be credited, under this paragraph (b), to an Employee on account of any single continuous period during which the Employee performs no duties (whether or not such period occurs in a single computa- tion period); (ii) an hour for which an Employee is directly or indirectly paid, or entitled to payment, on account of a period 1-4 1 during which no duties are performed is not required to be credited to the Employee if such payment is made or due under a plan maintained solely for the purpose of complying with applicable workmen's compensation, or unemployment compensation or disability insurance laws; and (iii) Hours of Service shall not be credited for a payment which solely reimburses an Employee for medical or medically related expenses incurred by the Employee. For purposes of this paragraph (b), a payment shall be deemed to be made by or due from the Employer regardless of whether such payment is made by or due from the Employer directly or indi- rectly through, among others, a trust fund or insurer, to which the Employer contributes or pays premiums and regardless of whether contributions made or due to the trust fund, insurer, or other entity are for the benefit of particular Employees or are on behalf of a group of Employees in the aggregate. (c) An Hour of Service is each hour for which back pay, irrespective of mitigation of damages, is either awarded or agreed to by the Employer. The same Hours of Service shall not be credited both under paragraph (a) or paragraph (b), as the case may be, and under this paragraph (c). 1.16. "INVESTMENT OPTIONS" shall mean mutual funds or similar investment vehicles selected by the Plan Administrator into which the Participant directs the investment of his or her Account. 1.17. "MANDATORY EMPLOYEE CONTRIBUTION" shall mean the contribution of three percent (3%) of the Employee's Compensation required to receive an allocation of the Employer contribution. Such contribution shall be directed to either the Non -Qualified Deferred Compensation Plan or this Plan. 1.18. "NONFORFEITABLE" shall mean an unconditional right of a Participant or his Beneficiary to that part of an immediate or deferred benefit under the Plan which arises from the Partici- pant's service and which is legally enforceable against the Plan. 1.19. "NORMAL RETIREMENT AGE" shall mean age 7035. 1.20. "PARTICIPANT" shall mean an Employee who shall have met all requirements for participation in the Plan and who has elected to make contributions to this Plan. Each Participant ceases to be such when he terminates his or her employment with Employer, except where pursuant to this Plan the distribution of benefits shall be deferred to a later date. 1-5 1.21. "PLAN" shall mean this document as now written and any amendments thereto which may be in force from time to time. 1.22. "PLAN ADMINISTRATOR" shall mean the person or persons or corporation named pursuant to Article 14 to administer the Plan. 1.23. "PLAN YEAR" shall mean the twelve (12) month period ending December 31 of each year. 1.24. "RETIREMENT" shall mean the first date upon which both of the following shall have occurred with respect to a Participant: Separation from service at a minimum attainment of age 55. 1.25. "ROLLOVER ACCOUNT" shall mean an individual account maintained to record a Participant's share of the Trust Fund attributable to the Participant's rollover contributions and earnings thereon. 1.26. "SEPARATION FROM SERVICE" shall mean severance of the Participant's employment with the Employer which constitutes a "separation from service" within the meaning of Section 402(e)(4)(A)(iii) of the Code. In general, a Participant shall be deemed to have severed his or her employment with the Employer for purposes of this Plan when, in accordance with the estab- lished practices of the Employer, the employment relationship is considered to have actually terminated. 1.27. "TRUST AGREEMENT" shall mean the Agreement between Employer and the Trustee or successor Trustee named under the Trust Agreement executed concurrently herewith which provides for the administration of the Trust Fund. 1.28. "TRUST FUND" shall mean the fund established to hold all assets contributed and accumulated pursuant to this Plan. 1.29. "TRUSTEE" shall mean the person or persons or corpo- ration having trust powers so designated by the Employer to serve as Trustee and who, by execution of the Trust Agreement, signi- fies its acceptance of the Trust, or any person or persons or corporation having trust powers duly appointed as a successor Trustee. 1.30. "VOLUNTARY CONTRIBUTION" shall mean an individual's contributions in addition to his or her mandatory contributions. 1-6 1.31. "YEAR OF SERVICE" shall mean, for purposes of deter- mining an Employee's eligibility to participate in the Plan, any 12 consecutive month period after the date of hire in which the Employee completes 1,000 or more Hours of Service. 1-7 ARTICLE 2. ELIGIBILITY 2.01. INITIAL ELIGIBILITY. All Eligible Employees who meet the requirements of the Plan prior to this amendment shall remain Participants. Other Employees may become Participants at the beginning of the month following the date such Employee first becomes an Eligible Employee. 2.02. ELIGIBILITY REQUIREMENTS. (a) Participation in this Plan is voluntary. Before the beginning of each Plan Year each Eligible Employee will be given the opportunity whether to make mandatory contributions to this Plan, to have the Employer defer compensation pursuant to a Deferred Compensation Agreement under the City of Fayetteville Nonqualified Deferred Compensation Plan, or to forego making contributions for such Plan Year. Such election, once made, shall be irrevocable for the entire Plan Year. If a change in such election is not made before the following Plan Year, such election shall continue for the following year, when this proce- dure shall be repeated. (b) As a condition for participating in Employer Contribu- tions in this Plan, each Eligible Employee shall agree to contribute at least 3% of his or her Compensation under either this Plan or the City of Fayetteville Nonqualified Deferred Compensation Plan. Such agreement shall fix the amount of the contribution, direct the investment of the Account among the Investment Options, designate the Beneficiary and shall incorpo- rate by reference pertinent provisions of the Plan. (c) At Normal Retirement, or at such other date as the Participant shall be entitled to receive benefits, the Employee Contribution Account shall be used to provide benefits to the Participant pursuant to Article 9. 2.03. TERMINATION AND REEMPLOYMENT. (a) If an Employee who is not an Eligible Employee termi- nates employment and he or she is subsequently reemployed by the Employer, service before such termination shall not be taken into account, and the Employee shall be required to meet the require- ments of Section 1.09 after his or her return. 2-1 1 • • ARTICLE 3. EMPLOYER CONTRIBUTIONS 3.01. EMPLOYER CONTRIBUTION. If the Eligible Employee contributes the required contribu- tion under Section 2.02, the Employer shall pay to the Trustee for each Plan Year an amount equal to nine percent (9%) of each Participant's Compensation. Employer contributions shall be paid monthly to the Trustee no later than 30 days after month end. The Employer Contribution Account of each Participant shall be credited with the amounts contributed by Employer on his or her behalf. 3-1 4 ARTICLE 4. EMPLOYEE CONTRIBUTIONS 4.01. ADDITIONAL VOLUNTARY CONTRIBUTION. In addition to the Mandatory Employee Contribution under Section 2.02, each Participant may at his or her option contribute in cash to the Trust Fund during each Plan Year an amount as a voluntary contribution not to exceed 10% of Compensa- tion. Voluntary contributions after December 31, 1994, shall be limited in accordance with Code $ 401(m). Any and all amounts contributed by a Participant pursuant to this paragraph shall be credited to the Participant's Employee Contribution Account. The Plan Administrator, in its discretion, and in accordance with the rules and procedures adopted by it relating to voluntary contributions, which shall be uniformly applicable to all Parti- cipants, may provide for times within which, or upon which, Participants may alter or terminate the amount of their contribu- tions to be made in accordance with this Article. The contribu- tions shall be paid to the Trustee no later than thirty (30) days after the end of the month in which the contribution is made. The Trustee shall not be responsible for the collection of such contributions. 4.02. WITHDRAWAL OF EMPLOYEE CONTRIBUTION ACCOUNT. A Participant (or his or her Beneficiary) may withdraw his or her Employee Contribution Account in accordance with Sec- tion 10.04. 4.03. ROLLOVER CONTRIBUTIONS. (a) An Employee who is a member of an eligible class of employees may contribute cash to the Trust Fund which is received as a distribution from another qualified plan, or may have amounts transferred directly from other qualified plans, provided that the trust from which such funds are transferred permits the transfer, and provided that the transfer shall not adversely affect the qualification of the Plan. Such transferred amount or contributions contributed by an Employee shall be credited to an Employee's Rollover Account. Such rollover contributions may be delivered to the Plan Administrator for its prompt transmittal to the Trustee. The Trustee shall not be responsible for the collection of such rollover contributions. (b) A Participant, by giving 30 days' written notice to the Trustee, may withdraw or transfer to another qualified trust all 4-1 • • • or part of his or her Rollover Account. At Normal Retirement Age, or such other date when the Participant or his beneficiary shall be entitled to receive benefits, the Participant's Rollover Account shall be used to provide benefits to the Participant under the method as provided by Article 9. If an Employee, prior to satisfying the Plan's eligibility conditions, makes a rollover contribution, distribution shall be made under this Plan as if he or she were a Participant. 4-2 • • ARTICLE 5. ACCOUNTS 5.01. ESTABLISHMENT OF SEPARATE ACCOUNTS. The Plan Administrator shall maintain as separate and distinct accounts, each Participant's Employee Contribution Account, Rollover Account and Employer Contribution Account. The Plan Administrator and the Trustee, through their accounting records, shall segregate clearly each account, and maintain a separate and distinct record of all income and losses attribut- able to each such account. The Plan Administrator shall keep a record of each Partici- pant's pre -1987 employee contributions. 5.02. INVESTMENTS. The Participant, at his or her sole discretion, shall direct the investment of his Account into one or more Investment Options selected by the Plan Administrator and contained in a Trust Fund established exclusively for this Plan, and from time to time may elect to change the amount or redirect such investment pursuant to procedures established by the Plan Administrator. 5.03. ALLOCATION OF EARNINGS AND LOSSES. The regular valuation date of the Plan shall be the last day of each Plan Year. The Plan Administrator may designate other valuation dates as deemed necessary. Such dates shall be referred to as "Valuation Dates." The valuation basis of all assets shall be their fair market value. Accounts will be invested pursuant to the written direction of a Participant and be valued in accordance with this Section. The net earnings, gains or losses of the Plan, and changes in the fair market value of the assets shall be allocated propor- tionately on each Valuation Date to the Participants on the basis of their respective Account balances utilizing a unit accounting valuation. Neither the Employer nor the Plan Administrator guarantees or in any manner protects the Participants or their beneficiaries against conditions of market causing loss or depreciation or fluctuation in the value of the assets comprising the Trust Fund. 5-1 • • • In no event shall the Employer's liability to pay benefits to a Participant exceed the value of the Participant's Account. 5.04. STATEMENT TO PARTICIPANTS. The Plan Administrator shall furnish to each Participant at least annually a statement of each Participant's Account(s) as it from time to time exists. Statements shall contain an adequate explanation of the computation including market valuation, unit values and other allocation factors provided in this Plan. 5.05. UNCLAIMED ACCOUNT PROCEDURE. The Plan Administrator shall not be obliged to search for, or ascertain the whereabouts of, any Participant or Beneficiary. The Plan Administrator, by certified or registered mail addressed to his or her last known address of record with the Plan Adminis- trator or the Employer, shall notify any Participant, or Benefi- ciary, that he or she is entitled to a distribution under this Plan, and the notice shall quote the provisions of this Section. If the Participant, or Beneficiary, fails to claim his or her distributive share or make his or her whereabouts known in writing to the Plan Administrator within six (6) months from the date of mailing of the notice, or before this Plan is terminated or discontinued, whichever should first occur; the unclaimed amount shall be treated as a Forfeiture for the later of the Plan Year in which the six-month period expires or the Plan Year a Forfeiture would otherwise occur if distribution has been made. Pending such Forfeiture, the amount shall be segregated in a segregated interest-bearing account in the name of the Partici- pant or Beneficiary, which shall be entitled to all income it earns and shall bear any expenses incurred. If a Participant or Beneficiary who has incurred such a Forfeiture makes a claim for his or her forfeited Account, the Employer shall contribute such amount, unadjusted for earnings, gains or losses occurring subsequent to the date of the Forfei- ture. 5-2 • • • • ARTICLE 6. VESTING OF PARTICIPANTS' INTEREST 6.01. VESTING OF EMPLOYEE CONTRIBUTION, ROLLOVER ACCOUNT AND EMPLOYER CONTRIBUTION ACCOUNTS. All contributions credited to a Participant's Employee Contribution Account, Rollover Account or Employer Contribution Account shall be at all times one hundred percent (100%) vested and nonforfeitable. 6-1