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1980 PLANOPROVEMENTS
<br />· Congress passed legislation which allows substan-
<br />.tlally Increased flexibility {n the provisions of the
<br />Minnesota Deferred Compensation Plan, Following
<br />is an outline of the majo, r changes in the Deferred
<br />
<br />two. the amount ct compensntion which coul(
<br />havl~'een deferred under this plan starting wilt
<br />1979, and'the amount which you deferred durlnl
<br />that time. The total deferral may not exceed $15.001
<br />tor any taxable year. .
<br />
<br /> Compensation Plan: : - : -' "-
<br />
<br /> -. a)' You 'may now' start, change ~r stop salary--':., ,: INTRODUCTION ":'i-.".. :
<br /> deferrals any month of the year, These changes in ; '--, ' - '. ~, ...... .;.... ,;,...
<br /> deferred'amounts wi be effective the frst fu pay"',",:,".-' ,, "B' 'artc atlr'; 'in';i~':-'::'' ' ' ...... ........ : t .-.-
<br />' . ........... w,-- :e--i-t of an'a~ cat on A": ""i.'.. ??' y p p ' g e Deferred Compensation Plat
<br /> per,ca ~u oays ~u,o ~n9 [ uu p F'F' ' -: ,"" ' yOU may save some of your salary and postpone
<br /> maximum of 2 changes in the amount deferred will
<br /> be allowed each calendar year. However, if you stop '": :':'"- income tax liability on this salary until after you
<br />
<br /> salary deferrals you may not again defer salary until ; retirement, This tax-deferral plan hal ps you in thre(
<br /> ways. :, .. .,:. ?.,. i?, .%'-'
<br /> the next calendar year. , . . : . . - '
<br />
<br /> b) Salary deferrals may be invested in one of. or any "' First, State and Federal income tax rates ar(
<br /> usually lower after retirement because your in.
<br /> combination of the following three accounts: In- _
<br /> come Share Account. Growth Share Account, and , come is less and your personal exemption at
<br />
<br /> Fixed Return Account. The amounfto be deferred : ; 65 doubles. . · .-
<br />
<br /> may not be less than $10.00 per pay period for each - ~: : ._' ". A second advantage is that you invest before-to)
<br /> account selected. Your choice of investment op- -, '-, . . ' dollars. This means you can put more into sav-
<br /> · "lions for future salary deferrals maybe changed.' '~' ;;- ';: ings now by investing the money you would have
<br />:: once each'calendar year. Past salary deferrals in- :~ '~.':: r' : ' ' :paid in taxes. - .'. _.: -3 - ...,-...
<br />
<br /> '-. vested in the Income or Growth Account may be-:.i!:'.'-.~...?..-;!:-:-Third,.'a'll.ir~terest ear'n'ed, ~r~y appreciation o~
<br /> , switched to the Fixed Return Account once each. ;.:i-*~ '."'-"-'". stock'value and dividends are accumulatbd will'
<br /> · _.year.; . , :.' ...., .: .' .-..'-.-.'; :.. :'.-?-..;~'!.'7-.::'" ?:"'-';~:~';.;~:':'~._; :~:, ~i'" the tax deferred Until you receive payment..
<br /> " c) YOU may choose a date for your payments to ': --,-.; :-':' The r~onies are ir~vested and the apl~r(~ciated (or
<br /> · begin and the time period over which the payments :~:'"i - '~::: depreciated) value of your deferred salary will nor-
<br /> are to be made. The withdrawal date and period ... ~ mally be paid back to you after retirement. Pay-
<br /> · may be selected and may be changed at any time '...: ments are taxed as ordinary income as you receive
<br /> · before payout begins. Withdrawal of i'nvestments - ' ' them. PAYMENT FROM THE DEFERRED COMPEN-
<br /> may no! begin before termination of employment, '--"; -~' "-'-
<br /> '...! .- SATION ACCOUNT CAN NOT START UNTIL TER-
<br /> ,-.?.' - except for a nonbudgetable financial emergency ..... M1NATION OF EMPLOYMENT EXCEPT FOR
<br /> Payments may be in a lump sum or in monthly pay- '-' "'
<br /> A
<br /> . .'- . ' FINANCIAL EMERGENCY OR DEATH.-..:;!. -
<br /> · merits ranging from 2 to 240 months.(20 years).'.- .: ...... .:...-,..- - :
<br /> ? ~ . NOTE: This is NOT a plan for people who wish to
<br /> , ?.Once payout begins, the payout period may not be .,
<br /> .i':'..~:.-¢chan§ed except to prov de a lump sum payment of '~ : ' save for a new car, new house, or a college educa-
<br />t" ' ":'"-t~-e account ba anco ' " , ......... :' · --- ' -¢,~ ;-'-t on for the r"ch dren You shou dook at Deferred
<br />["" "::.i':-":: .' :'" ' ":" ' -'"" -'" .... -;'; '~:*""~ "~'''I''': '-::' :-:" '-',i'"- ,:;'.'--:::-.' ,,.Compensation asa permanent investment account
<br />[ :'Past eectons of.wthdrawa 'date and age 'are ~ ~"" :' "' :' that 'w remain untouched until r 'i
<br /> · '..-'~ " · . ' -..',~'? :'.-',. e~ remem .
<br />~ .":" '.'voided and participants may choose a payout date *.~'.!.~--::-~.'..';.' :~.::_: -';.:~ .,--, ,...-..,-..::- ..... ..~ .. ';,. .... ;., ;;... ' ' -
<br />t :" :'and period as.provided by the curreni plan.'¢ '-"~-':.~i ~',:~; ::;:::.;? :-?;..';:,':-;;;~.".";i'_ !!.'-~::i:'i.':~ ".'.-'-;;::~.· .~'~:: .i :' ::,~.-.?.:~'~;~.:'.i-~';:" : -
<br />. · . :.. ...... . :. ·., ....., : .:...- .... - - . ., _. ..... ?', ,--'..- _.,~,.,.,,;.._:..¢~- :, '~:.:-,¢ ,: '~..~' ..,~,.-.;..:;- ·, - ,, ':.~,:..-...: ',:,.,'~:.':,: ,~r-.;_-' _ --
<br /> ' maximum annual defe'rral iS'25% of ;-,-;: - "' :'-', .":;-'. ':-- ·
<br />
<br />,' :.' .".'d)salary.from. The your employer or $7,500.00 per calen-;;':.:;';,..gr°ss" -.'. ;"; ......-'--",.,"'" ...... WnW vn... ,.,,.., BENEFIT"-,';'.:': ". .
<br />' :' dar year wh chever s ~ss Add t cna amounts may' -;~.'.'-'-, .'; '":~.,7 -,' ~ . ' ' , ' .... ' : :- : ''{-''''
<br />t · · " . ..'.. r".~ . ~ne following comparison shows h0~ the Deferred
<br />, .' be deferred if you meet the following requirements: .-; -. :" .. ~-'~ · ....
<br />~ .... . . . . _:. ;-:~,.. :. . .. ',. ..- _ - : .;;---'~ - ._::.~ompensauon p an may increase-'your personal
<br />
<br />;· -.. 1)' are within' three taxable 'yea~:s?of' projected _.':.?: ~ :';': savings program through investment of before-tax
<br /> · retirement age."." -' :..'--~ ' ..' '-'.. ' ~:~.::.' '- ..- .~";._.- ,' ' ' dollars. In each of the examples, $1,000,00 is sub-
<br />;'- 2) have' not deferred the 'maXimum 'deferral ':-'?. '. ~- tracted from gross annual salary .and is made
<br /> - allowed for'all'years-starting with 1979. ,. .... .- . available for investment for a period of 20 years.
<br /> ' ' ' , '.'" ' "· ' : ""-': ' ' Column I shows the $1,000 invested in a conven-
<br />,- If you meet ~hes~' requi~;em~nts, you may defer an ' ,¥ . ..:.'~ tional savings account and Column 2 shows the
<br />~'. amount equal to the maximum annual deferral plus ·~-!;:~. ~ money invested in the Deferred Compensation
<br />'[' an additional amdunt .equal to the difference be-_-,,.-::---.: :Plan '"....' .~- ":..--,,',':". '-~'-'-'"-? -' ...... ' , ,
<br /> ..... ' '.' ;':' ' '): ' ~ -'?; :-. ' -;::;. ': ~ : '~,,:-"~-""~'""L",' ' : ..~ "'; :'; ..... "';~. ~.' :'~.--~;' '-~' -~:.'- -~*" :': ~' -
<br />i '. :-,'.',:, '.,;',-.'.'; '.'. ', ~ *.2.-':.~ .... -:..,-~: ..-:..;...:;_-::.,:~...4.~........-:..;~ , : :.t::..-.-'..-_':~:.:..?.....::-~.,:,~-; _.. :..::;.., ~,-...-~, : · _
<br /> ' '~ ",- -'.':-- ' ~ '7.- '-':.":;;' ',,-.' .... '-".:;'~;'£'::: '.--:._-'-::::-'~.: ..'_,,~':,,'-. '---? ~-;,.'.'.;~:2--.'.. :-". ~.:;,-."7..' :-' · ' ~' ':.'- " ' - .
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