Agenda - Council - 07/22/1980 - Laserfiche WebLink

Home

4.5 Modifications t~=~mount deferred. The employ ll adjust the participant's total annual compensation, on a pay period basis, by the deferred compensation amount indicated on the participant's application. That amount, subject to the limits of Section 4.4 may be increased or decreased only by proper application to the employer or to the director acting for employer. The change shall take effect the first full pay period following 30 days from receipt and approval of the application. Only two modifications (other than a revocation of participation as provided in Section 4.6) may be made each taxable year. 4.6 Revocation of deferral. Any participant may revoke his or her election to have compensation deferred by so notifying the employer or the director acting for the employer in writing. The participant's full compensation on a non-deferred basis will then be restored beginning with the first full pay period following 30 days from the date notification was received; however, the participant's deferred compensation account shall be paid only as provided in Section 5. The participant may not again be eligible to defer compensation until the next taxable year. 4.7 Duration of election to defer compensation. Once an election to have compensation deferred has been made by the participant, the election shall con- tinue in effect until the participant's termination of service, unless the participant modifies the amount in accordance with Section 4.5 or revokes the deferred compensation in accordance with Section 4.6. 4.8 Deferral adjustments. (a) Deduction exceeds pay period salarS available If for any reason the deferred compensation deduction for any pay period exceeds the amount remaining after provision is made for retirement deductions, social security tax contributions, state and federal income taxes, and any other deductions required by law, then no deduction for the plan will be made for such participant for such pay period. (b) Missed deductions and over-deductions If a deferred compensation deduction is missed for any reason what- soever, no adjustment shall be made on any future pay period for such missed deduction. However, if for any reason whatsoever an amount is deducted from a pay period greater than that indicated by the participant on his applicatioh, the amount over deducted will be refunded. (c) Change in paS period length In the employee's application for participation in the plan, he must state the amount he wishes withheld each pay period. If for any reason the length of the period for which the employee is paid is changed from that in effect as of the date of the application, the employer or the director acting for employer shall compute and have withheld from such employee's salary an equivalent whole -5-