Staff Report — Simi Valley City Council, February 27, 2023

CITY OF SIMI VALLEY

MEMORANDUM
F
ebruary 27, 2023
TO
: City Council
F
ROM: Office of the City Manager
SUBJECT: ADOPTION OF RE SOLUTION AMENDING THE CITY’S 457 DEFERRED

COMPENSATION PLAN DOCUMENT

STAFF RECOMMENDATION
It is recommended that City Council adopt the attached R esolution No. 2023- 09 (page 3) implementing Empower’s revised plan documents as the City’s 457 Defer red Compensation Plan Document (Attachment A, page 4).

BACKGROUND AND OVERVIEW
The City provides a 457 deferred compensation plan, which allo ws its employees to defer compensation into a personalized retirement plan. A plan amendment is required to comply with the Setting Every Community Up for Retirement Enhancement (SECURE) Act and the Coronavirus Aid, Relief, and Economic Security (CARES) Ac t. Empower , as the City’s 457 record keeper/ administrator, has provided the City with an approved specimen that requires the City’s adoption. The City has until December 31, 2025 to amend the plan in order to take advantage of benefit changes permit ted by these laws. Staff recommends the City Council approve the amendments to the City’s plan.

FINDINGS AND ALTERNATIVES
The Setting Every Community Up for Retirement Enhancement (SECURE) Act and the Coronavirus Aid, Relief, and Economic Security (CA RES) Act amendments, noted below, are required and there is no cost to the City for implementing these provisions.

SECURE Act Amendment:

1. T
he required minimum distribution age is increased to age 72 for participants who turn age 70 ½ after 12/31/19,

2. Accounts to be fully paid out to the beneficiary within 10 years of the participant’s death with limited exceptions (e.g., spouse, children not yet reached age of maturity, disabled, etc.).

3. The amendment did not include the participant’s right to receive an in-service distribution at age 59 ½ or to receive a distribution of up to $5,000 for a qualified birth or adoption. These are optional provisions.

AGENDA ITEM NO.

Consent (5)
2 CARES Act Amendment:

T
he CARES Act allowed the City to permit CARES distributions and loans during 2020 and extended loan repayments during 2020. In addition, required minimum distributions (RMDs) would be suspended during 2020. This amendment therefore reflects and confirms the actions that were taken by the City during 2020. The amendment indicates that if the City did not operationally apply any of these rules, the provisions would not apply.

S
taff recommends the City Council approve the two amendments.

T
he following alternatives are available to the City Council:

1. A
dopt the attached resolution to modify the City’s 457 Deferred Compensation Plan Document;

2. M
ake no change to the City’s 457 Deferred Compensation Plan Document;

3. P
rovide staff with other direction.

Staff recommends Alternative No. 1. Staff does not recommend selecting Alternative No. 2 as no further 457 Deferred Compensation Plan amendments can be made until these two amendments are approved and take effect.

SUGGESTED CITY COUNCIL MOTION
I move to authoriz e the acceptance of Setting Every Com munity Up for Retir ement Enhancement (SECURE) Act and the Coronavirus Aid, Relief, and Economic Security (CARES) Act plan amendments.

SUMMARY
In order to conform to IRS requirements for deferred compensation plans, it is recommended that City Council adopt the attached R esolution No. 2023- 09 (page 3) amending the City’s 457 Deferred Compensation Plan Document (Attachment A). ___
__________________________________
Trevor Earle
Risk Manager
INDEX Page
Resolution No. 2023-09………………………………………………….... .3
Attachment A – SECURE Act and CARES Act Plan Amendments……4

RESOLUTION NO. 2023-09

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SIMI VALLEY AMENDING THE CITY’S 457 DE FERRED

COMPENSATION PLAN DOCUMENT FOR DESIGNATED

CITY EMPLOYEES
W
HEREAS, the City Council has previously established a 457 Deferred Compensation Plan Document for designated City employees; and WHEREAS, the City Council desires to amend the Plan to conform with The Setting Every Community Up for Retirement Enhancement (SECURE) Act and the Coronavirus Aid, Relief, and Economic Security (CARES) Act amendment; and WHEREAS, the City Council finds and determines that this amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this amendment.

W, THEREFORE, THE CITY COUNCIL OF THE CITY OF SIMI
VALLEY DOES HEREBY RESOLVE AS FOLLOWS:

T
he City of Simi Valley’s 457 Deferred Compensation Plan Document, as amended and attached hereto as Attachment A and incorporated herein by reference, is hereby adopted.

T
he effective date of these amendments to the 457 Deferred Plan Document shall be retroactive to January 1, 2022.

T
he City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the Office of the City Clerk.

PASSED
and ADOPTED this 27th day of February 2023.

A
ttest:

City Clerk Fred D. Thomas, Mayor of the City of
Lucy Blanco Simi Valley, California
A
pproved as to Form: Approved as to Content:

David L. Caceres, City Attorney Brian Paul Gabler, City Manager 3 FAQ: Plan Document Amendment – SECURE
Q: What is SECURE and how does it impact my retirement plan? A: SECURE along with associated regulations made several changes to the rules governing retirement plans.

SECURE (Setting Every Community Up for Retirement Enhancement Act) passed into law in December 2019. Some changes under SECURE include:
• Increased RMD to age 72
• Allowed for distributions for qualified birth or adoptions • Increased QACA maximum cap to 15% (401(k) and 403(b) plans only) • Expanded coverage of long-term part-time employees (401(k) plans only) Attached is a chart for additional information on SECURE. Prior communications also covered SECURE in more detail and some key provisions that would apply to your plan, including defaults and optional provisions.

Q: Do we need to amend our plan document for SECURE?
A: Yes. The amendment we provide to you for SECURE will depend on your type of plan and optional provisions that apply to your plan.

Some SECURE amendments have been adopted by us as sponsor of the plan document and do not require a plan sponsor signature. Other SECURE amendments will require customization and plan sponsor signature. The cover letter provided along with your amendment will inform you if your signature is required. A plan amendment fee will apply if your amendment requires customization and plan sponsor signature. Prior guidance from the Department of Labor has indicated that expenses for required compliance amendments can be paid from plan assets.

The amendment being provided for SECURE incorporates the Bipartisan American Miners Act of 2019 that allowed for age 59-1/2 in-service withdrawals (Money Purchase Plans, Other plan types with Money Purchase Plan accounts and Governmental 457(b) plans only).

Q: What is the deadline for the SECURE amendment?
A: The deadline to have a signed SECURE amendment in place is December 31, 2025 (90 days after the close of the third regular legislative session of the legislative body with the authority to amend the plan that begins after December 31, 2023 for Government Plans). However, adopting an interim SECURE amendment now will assist you in documenting your administration of SECURE provisions many of which went into effect in 2020. For example, your plan document will reflect the current required beginning date change for RMDs to age 72.

Q: Is a Summary of Material Modifications (SMM) required to update the Summary Plan Description (SPD)? When does it need to be provided to participants?
A: Yes, an SMM is required to communicate changes made by SECURE to participants. • The SMM we provide to you updates your existing SPD to reflect new provisions under SECURE. • For plans subject to ERISA, the SMM must be provided to participants by 210 days after the end of the plan year in which the changes are adopted. For a calendar year plan, that would be July 29, 2023.

If you use a custom SPD, it is your obligation to determine whether the provided SMM is sufficient for your needs and revise as necessary prior to distribution. You will need to append the SMM to the SPD you maintain or update the SPD you maintain.

DocuSign Envelope ID: 9F1FF151-8D59-4B12-BEAB-183E4FAFBCBE 4 ATTACHMENT A
Q: Can we provide an updated SPD instead of the SMM?
A: Yes, you can provide an updated SPD, rather than an SMM, to participants. If your plan is later amended and you receive an updated SPD that reflects the changes in these amendments, it is sufficient to provide that updated SPD.

Q: I have a governmental plan. Do I have to distribute the SMM? A: Governmental employers are not required to provide an SPD or SMMs under federal requirements. However, you may have previously been provided with an optional Summary of Plan Provisions or Summary Plan Description with your plan document.
• If you previously provided a summary to plan participants, you should provide the SMM to current participants and distribute both the summary and the SMM to new participants. • If you have never received or provided a summary, you are not required to provide an SMM to participants.

Q: Does my plan need a SECURE amendment if I recently restated or amended my plan? A: Yes, the amendment needed for SECURE was not included in those documents.

Q: What other required regulatory amendments may apply to my Plan Document? A: The Coronavirus Aid, Relief, and Economic Security Act (CARES) will also require an amendment to your plan document and will be provided in another communication.

Q: What if I already adopted an amendment for an optional SECURE provision? A: If you already adopted an amendment for an optional SECURE provision, you are not required to reflect that in the SECURE regulatory amendment.

Q: I am interested in adding some of the optional SECURE provisions going forward. How should I proceed? A: You should contact your client services representative about the potential for adding options allowed under SECURE.

DocuSign Envelope ID: 9F1FF151-8D59-4B12-BEAB-183E4FAFBCBE 5 SECURE ACT KEY PROVISIONS
Following is a summary of key provisions in the SECURE Act plan amendment.

Provision Typical plan types
impacted
Description Effective date
Extend the
right to defer
salary to
certain long-
term part-time
employees
401(k) plans
Does not apply to
collectively bargained
plans or to a portion of
a plan that benefits
collectively bargained
employees.
401(k) plans must allow an employee to defer
salary no later than once they work at least
500 hours in each of three consecutive 12-
month periods. Those employees do not
need to receive employer contributions and
are excluded from certain testing (ex. ADP,
ACP, top heavy).

Start counting hours for these
employees for eligibility purposes
on the first day of the first plan year
beginning on or after 1/1/2021.

Hours worked prior to that date do
not need to be considered for
eligibility purposes but may need to
be considered for vesting purposes.

Allow
automatic
contribution
increases to a
maximum of
15% of pay
under QACA
safe harbor
plans
401(k) and 403(b) plans SECURE allows plans using a QACA safe harbor to automatically increase a
participant’s salary deferrals over time to a
maximum of 15% of pay, up from 10% under
prior law. Note that the initial default
deferral rate cannot exceed 10% from the
time the participant is automatically enrolled
until the close of the following plan year. All
other rules relating to QACA plans are
unchanged.

Provision can be added to a plan
effective on or after 1/1/2020.

Eliminate
notice
requirement
for nonelective
safe harbor
plans
401(k) and 403(b) plans SECURE eliminates the participant notice requirement for plans using a nonelective
contribution to meet the safe harbor.

Plan years beginning on or after
1/1/2020.

Delayed
adoption for
nonelective
safe harbor
plans
401(k) and 403(b) plans A plan sponsor may adopt safe harbor status as late as 30 days before plan year-end if the
plan uses a 3% nonelective contribution to
meet the safe harbor. Alternately, the plan
may adopt safe harbor status fewer than 30
days before plan-year end if it does so by the
close of the subsequent plan year and
provides at least a 4% nonelective
contribution to meet the safe harbor.

Plan years beginning on or after
1/1/2020.

DocuSign Envelope ID: 9F1FF151-8D59-4B12-BEAB-183E4FAFBCBE 6 Provision Typical plan types
impacted
Description Effective date
Qualified birth
or adoption
distributions
401(a), 401(k), 403(b)
and governmental
457(b) plans
A participant can withdraw up to $5,000 per
newborn child or eligible adoptee within 12
months of the birth or finalization of the
adoption. The dollar limit applies per
participant per child and applies across all plans
maintained by the same employer or related
employers. A plan sponsor may rely on the
participant’s reasonable representation that
they qualify for such a distribution unless the
sponsor has actual knowledge to the contrary.

The distribution is exempt from the 10%
additional income tax for early distributions.

The participant may repay all or a portion of the
distribution to the distributing plan or another
plan (if those plans would accept a rollover
from the participant) or an IRA. Distributions
cannot be made from money purchase assets
unless the participant has attained age 59 ½.

Provision can be added to a plan
effective on or after 1/1/2020.

Age 59 ½
distributions
for money
purchase assets
and
governmental
457(b) plans
Money purchase 401(a)
plans, other plans that
contain money
purchase assets, and
governmental 457(b)
plans
Prior law allowed in-service withdrawals from
money purchase assets only once the
participant attained age 62 and from a
governmental 457(b) plan only once the
participant attained age 70 ½. SECURE allows
the sponsor to choose to amend plans to allow
such is-service distributions once the
participant attains age 59 ½.

Provision can be added to a plan
effective for plan years
beginning on or after 1/1/2020.

Increase RMD
age to age 72
401(a), 401(k), 403(b),
and governmental
457(b) plans
The provision delays the required beginning
date for minimum distributions from age 70 ½
to age 72 for participants who attain age 70 ½
on or after 1/1/2020 (i.e., born after
6/30/1949). Participants who attained age 70
½ prior to 1/1/2020 remain subject to the prior
rule.

Plan years beginning on or after
1/1/2020.

Require
accounts to be
fully paid out
to the
beneficiary
within 10 years
of the
participant’s
death with
limited
exceptions
Defined contribution
401(a), 401(k), 403(b)
and governmental
457(b) plans
This new rule generally requires a deceased
participant’s account to be distributed by the
end of the 10th calendar year after the
participant’s death. This rule does not apply to
any portion of the distribution payable to an
“eligible designated beneficiary” which
generally includes: the participant’s surviving
spouse, the participant’s child under the age of
majority, disabled or chronically ill individuals
and any other person who is not more than 10
years younger than the participant.

Applies to distributions with
respect to employees who die
after 12/31/2019. (12/31/2021
for governmental plans,
12/31/2020 or 12/31/2021 for
collectively bargained plans
depending on the expiration of
applicable collective bargaining
agreements).

This summary does not include all changes in the plan amendment. Please carefully review the documents to ensure all plan terms accurately reflect the administration of your plan. These materials do not constitute tax or legal advice upon which any party can rely. Plan sponsors are encouraged to consult their own legal or tax advisors for questions on their specific situation.

DocuSign Envelope ID: 9F1FF151-8D59-4B12-BEAB-183E4FAFBCBE 7 1 745183-01

INTERIM AMENDMENT for FCAA, SECURE, and BAMA

ARTICLE I

PREAMBLE

1.1 Adoption of Amendment. The Employer identified on the execution page adopts this Amendment to implement provisions of the pension-related provisions of the Further Consolidated Appropriations Act of 2019 (“FCAA”) in general, and Division O of that Act, the Setting Every Community Up for Retirement Enhancement Act of 2019 (“SECURE”), in specific. It also addresses a provision of the Bipartisan American Miners Act (“BAMA”), which is also part of FCAA. The provisions of this Amendment shall be interpreted and applied to be consistent with FCAA and IRS guidance issued in connection therewith, whether such guidance is issued before or after the date of this amendment. Each Article specifies the effective date of its provisions.

1.2 Plan. This Amendment applies to the Plan identified on the execution page of the Amendment.

1.3 General. This Amendment supersedes the provisions of the Plan identified below to the extent those provisions are inconsistent with the provisions of this Amendment. Except as otherwise provided in this Amendment, any Article or Section reference in this Amendment refers only to this Amendment and is not a reference to the Plan. The Article and Section numbering in this Amendment is solely for purposes of this Amendment and does not relate to the Plan article, section, or other numbering designations. If the Employer restates the Plan, then this Amendment shall remain in effect after such restatement unless the provisions in this Amendment are restated or otherwise become obsolete (e.g., if the Plan is restated onto a plan document which incorporates these provisions). If the Employer previously amended the Plan after December 20, 2019 to implement a provision contained in one or more Articles of this Amendment, that prior amendment shall remain in effect and will not be superseded by this Amendment.

ARTICLE II

ELECTIONS

2.1 Operating Elections. Articles III, V, and VI of this Amendment refer to elections appearing in this Article II. Each of Sections 2.2 through 2.4 refers to a corresponding Article. For example, Section 2.2 has the elections related to Article III. The definitions in those Articles apply to the elections in the corresponding Section of this Article II, and those elections have the same effective date as the corresponding Article. Each Section of this Article II lists the default provisions which will apply if no election is made. If you accept the default(s), there is no need to complete the Section. There are no elective provisions which apply to Articles IV and VII through IX.

2.2 Article III – Birth/Adoption Distributions. In the absence of an election below, Article III does NOT apply. To permit QBADs (Qualified Birth and Adoption Distributions), check (a). If QBADs are available, they apply to all accounts except as provided in Article III or in elections (b), (c), (d), or (e). (Select all that apply.)
(a) [ ] Article III is effective January 1, 2020 unless a later effective date is entered here:
_________________. (Enter date after December 31, 2019.) (b) [ ] QBADs may only be made from accounts in which the Participant is fully vested. (c) [ ] QBADs are only available from the following accounts (select one or more):
(1) [ ] Pre-Tax Elective Deferrals
DocuSign Envelope ID: 9F1FF151-8D59-4B12-BEAB-183E4FAFBCBE 8 2 745183-01

(2) [ ] Roth Elective Deferrals
(3) [ ] Employer contributions
(4) [ ] Rollover contributions
(5) [ ] Transferred accounts
(6) [ ] Describe: _____________________________ (must be definitely determinable and not subject to discretion)
(d) [ ] QBADs are not available if the Participant has severed employment. (e) [ ] Describe additional limitations: ______________________________________________ (must be definitely determinable and not subject to discretion)

2.3 Article V – 10-Year Rule for Beneficiary RMDs. RMDs to an Eligible Designated Beneficiary of a Participant who dies prior to the Participant’s RBD will be made as elected below. In the absence of an election in Section 2.3, the Plan’s provisions about Beneficiary elections with regard to the 5-Year Rule will apply, substituting the 10-Year Rule for the 5-Year Rule. (a) [ ] Beneficiary election. The Eligible Designated Beneficiary may elect application of the 10-Year Rule or the Life Expectancy rule. If the Beneficiary does not make a timely election (Select one of (1) or (2)):
(1) [ ] 10-year rule. The 10-year rule applies to the Eligible Designated Beneficiary.
(2) [ ] Life Expectancy Rule. The Life Expectancy rule applies to the Eligible Designated Beneficiary.
(b) [ ] 10-year rule. The 10-year rule applies to the Eligible Designated Beneficiary. (c) [X] Life Expectancy rule. The Life Expectancy rule applies to the Eligible Designated Beneficiary.
(d) [ ] Shorter Period. The entire interest of the Eligible Designated Beneficiary will be distributed no later than December 31 of the ______ (enter a number of years, not exceeding “tenth”) year following the year of the Participant’s death. (e) [ ] Other: ________________________________________________________________ (Describe, e.g., the 10-Year Rule applies to all Beneficiaries other than a surviving spouse Beneficiary.)

2.4 Article VI – In-Service Distributions. In the absence of an election below, Article VI does NOT apply. To permit in-service distributions at age 59½, check (a). Check (b) to specify an age greater than 59 ½.
(a) [ ] Article VI applies effective on or after the first day of the first plan year beginning after December 31, 2019, unless a different date is entered here: _______________________. (Enter date on or after the first day of the first plan year beginning after December 31, 2019.)
(b) [ ] Age at which in-service distributions are permitted ___________.

ARTICLE III

BIRTH/ADOPTION DISTRIBUTIONS

3.1 Effective Date. This Article III is effective as the date specified in Section 2.2(a).

DocuSign Envelope ID: 9F1FF151-8D59-4B12-BEAB-183E4FAFBCBE 9 3 745183-01

3.2 Distribution Authorized. Except as limited by Section 2.2(b), (c), (e), a Participant may request a distribution of up to $5,000 (per child or Eligible Adoptee) as a QBAD. The Participant may request the distribution whether or not the Participant has severed employment unless Section 2.2(d) is selected. This $5,000 limit shall be reduced by QBADs to the Participant made with respect to the same child or Eligible Adoptee by other plans maintained by the Employer or a related employer described in Code §414(b), (c), (m), or (o). The Administrator may adopt a policy imposing frequency limitations or other reasonable administrative conditions for QBADs.

3.3 Definitions. The following definitions apply for this Article III and Section 2.2:
(a) A “QBAD” is a Qualified Birth or Adoption Distribution described in Code §72(t)(2)(H)(iii). A QBAD must be made during the 1-year period beginning on the date on which a child of the Participant is born or on which the legal adoption of an Eligible Adoptee by the Participant is finalized.
(b) An “Eligible Adoptee” is an individual, other than a child of the Participant’s spouse, who has not attained age 18 or is physically or mentally incapable of self-support. An individual is considered physically or mentally incapable of self-support if that individual is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or to be of long-continued and indefinite duration. This provision shall be applied in a manner consistent with Part D of IRS Notice 2020-68.

3.4 Rollover. A Participant who received one or more QBADs from this Plan may, if the Plan then permits the Participant to make rollover contributions, make one or more contributions in an aggregate amount not to exceed the amount of such QBADs. The Plan will treat such a contribution as a rollover contribution made by direct trustee-to-trustee transfer within 60 days of distribution.

3.5 Reliance. The Administrator may rely on an individual’s reasonable representation that the individual is eligible to receive a QBAD unless the Administrator has actual knowledge to the contrary.

3.6 Status. A QBAD is not an eligible rollover distribution for purpose of the obligation to permit a direct rollover under Code §401(a)(31), the notice requirement of Code §402(f), or the mandatory withholding rules of Code §3405(c)(1).

ARTICLE IV

REQUIRED BEGINNING DATE

4.1 Effective Date. This Article IV is effective with regard to RMDs required to be made after December 31, 2019, with respect to Participants who attain age 70½ after such date. For purposes of determining required minimum distributions for calendar years beginning on or after January 1, 2022 (or such later date as specified in applicable final regulations or guidance), the Administrator must apply the provisions of this Article IV consistent with proposed Treas. Reg §§1.401(a)(9)-1 through 1.401(a)(9)-9 issued on February 24, 2022 (or subsequent applicable final regulations).

4.2 Delay of Required Beginning Date. An Affected Participant’s RBD shall not be earlier than April 1 of the calendar year following the year the Affected Participant attains age 72. For purposes of determining an Affected Participant’s RBD, an Affected Participant will be treated as a more than 5% DocuSign Envelope ID: 9F1FF151-8D59-4B12-BEAB-183E4FAFBCBE 10 4 745183-01

owner if the Participant was a 5-percent owner (as defined in Code §416(i)(1)(B)) as to the Plan Year ending in the calendar year the Participant attains age 72.

4.3 Spousal Distributions. If an Affected Participant dies prior to the Participant’s RBD, and the Participant’s sole designated Beneficiary is the Participant’s surviving spouse, then the RMDs to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died, or by December 31 of the calendar year in which the Participant would have attained age 72, if later. However, this Section will apply only if the Plan, prior to this Amendment, permitted a surviving spouse to delay RMD distributions to December 31 of the calendar year in which the Participant would have attained age 70½.

4.4 Definitions. The following definitions apply for this Article IV:
(a) A Participant is an “Affected Participant” if the Participant was born after June 30, 1949. (b) An “RMD” is a Required Minimum Distribution as described in Code §401(a)(9). (c) A Participant’s “RBD” is the Participant’s required beginning date as described in Code §401(a)(9)(C), as amplified by Section 4.2.

ARTICLE V

BENEFICIARY RMDS

5.1 Effective Date. The Effective Date of this Article V is January 1, 2022. Article V applies to Participants who die on or after the Effective Date of this Article. See Section 5.4 regarding the limited application of this Article V to certain accounts of Participants who died before the Effective Date of this Article V.

5.2 Death before RBD. If the Participant dies before the Participant’s RBD, the Plan will distribute or commence distribution of the Participant’s Vested Account Balance not later than as follows:
(a) No Designated Beneficiary. If there is no designated Beneficiary as of September 30 of the year following the calendar year of the Participant's death, the Beneficiary's entire interest will be distributed under the 5-Year Rule.
(b) Eligible Designated Beneficiary. If the distributee of a Participant’s account is an Eligible Designated Beneficiary, the Beneficiary’s entire interest will be distributed under the Life Expectancy Rule unless the 10-Year Rule applies. The Employer may elect application of the Life Expectancy rule or the 10-Year Rule in Section 2.3. In the absence of an election in Section 2.3, the Plan’s provisions with regard to election of the 5-Year Rule will apply, substituting the 10-Year Rule for the 5-Year Rule. A permitted Beneficiary election must be made no later than the earlier of December 31 of the calendar year in which distribution would be required to begin under the Life Expectancy Rule, or by December 31 of the calendar year which contains the tenth anniversary of the Participant's (or, if applicable, surviving spouse's) death. (c) Other Designated Beneficiaries. If the distributee of the Participant’s account is a designated Beneficiary who is not an Eligible Designated Beneficiary, then the Beneficiary’s entire interest will be distributed under the 10-Year Rule.

DocuSign Envelope ID: 9F1FF151-8D59-4B12-BEAB-183E4FAFBCBE 11 5 745183-01

(d) 10-Year Rule. If distribution of a deceased Participant’s account thereof is subject to the “10-Year Rule,” then the Plan will distribute the account in full no later than December 31 of the tenth year following the year of the Participant’s death. No RMDs are required to be distributed from the account prior to that date.

5.3 Death after RBD. If the Participant dies on or after the Participant’s RBD, the Participant’s remaining interest will be distributed at least as rapidly as under the method of distribution being used as of the date of the participant's death to the extent provided by applicable guidance. If the Beneficiary is a designated Beneficiary that is not an Eligible Designated Beneficiary, the Plan will distribute the remaining account in full no later than December 31 of the tenth year following the year of the Participant’s death.

5.4 Beneficiary Death. If an Eligible Designated Beneficiary receiving distributions under the Life Expectancy Rule dies before receiving distribution of the Beneficiary’s entire interest in the Participant’s account, the Plan will distribute that interest in full no later than December 31 of the 10th year following the year of the Eligible Designated Beneficiary’s death. Similarly, if a Participant died before the Effective Date of this Article V, and the beneficiary died after such Effective Date, but prior to receiving full distribution of the beneficiary’s interest, the Plan will distribute that interest in full no later than December 31 of the tenth year following the year of the beneficiary’s death.

5.5 Age of Majority. If a child of the Participant was receiving distributions under the Life Expectancy rule, when the child reaches the age of Majority, the Plan will distribute the child’s account in full no later than 10 years after that date, provided the child is not otherwise an Eligible Designated Beneficiary, such as a disabled or chronically ill individual.

5.6 Definitions; operating rules. The following definitions and operating rules apply for this Article V and Section 2.3:
(a) An “RMD” is a Required Minimum Distribution as described in Code §401(a)(9). (b) A Participant’s “RBD” is the Participant’s required beginning date as described in Code §401(a)(9)(C) and the Plan. Also see Section 4.2.
(c) A distributee of a Participant’s account is a “designated Beneficiary” if the distributee is an individual or trust who is a beneficiary of the account (whether pursuant to a designation by the Participant or application of the Plan terms) and who is a designated beneficiary under Code §401(a)(9) and applicable regulations.
(d) An individual is an “Eligible Designated Beneficiary” of a Participant if the individual qualifies as a designated Beneficiary and is (1) the Participant’s spouse, (2) the Participant’s child who has not reached the age of Majority, (3) an individual not more than 10 years younger than the Participant, (4) a disabled individual, as defined in Code §72(m)(7), or (5) an individual who has been certified to be chronically ill (as defined in Code §7702B(c)(2)) for a reasonably lengthy period, or indefinitely. Certain trusts may be treated as Eligible Designated Beneficiaries pursuant to Code §401(a)(9)(H)(iv) and (v).
(e) Whether a child has reached the age of “Majority” is determined under Code §401(a)(9)(F) and applicable regulations and guidance issued thereunder.

DocuSign Envelope ID: 9F1FF151-8D59-4B12-BEAB-183E4FAFBCBE 12 6 745183-01

(f) The “Life Expectancy Rule” for distributing RMDs is described in Code §401(a)(9)(B)(iii) and is further described in the Plan.
(g) The “5-Year Rule” for distributing RMDs is described in Code §401(a)(9)(B)(ii) and is further described in the Plan.
(h) The “10-Year Rule” is described in Section 5.2(d).
(i) Shorter period. Section 2.3(d) may specify a shorter period to be used in place of the tenth year after the death of a Participant or Beneficiary.
(j) Separate share rule. All references in this Article to a Participant’s Account Balance and a Beneficiary’s interest in that account will be applied separately to each separate account determined under applicable regulations and Code §401(a)(9)(H)(iv).

ARTICLE VI

IN-SERVICE DISTRIBUTIONS

6.1 Application. This Article VI will apply only if the Employer elects in Section 2.4 for this Article VI to apply, effective on the date specified in Section 2.4(a).

6.2 Distribution at 59½. A Participant can take an in-service distribution at age 59½, or, if later, the age (if any) specified in Section 2.4(b). Such a distribution will be limited to the vested portion of the Participant’s Account Balance and will be subject to all Plan provisions related to in-service distributions.

The Plan can operationally permit distributions as early as January 1 of the calendar year the Participant attains 59½ (or such later age).

ARTICLE VII

DISTRIBUTIONS OF DISCONTINUED LIFETIME INCOME INVESTMENTS

7.1 Application. This Article VII is effective for Plan Years beginning after December 31, 2019.

7.2 Distributions authorized. The Administrator may authorize Participants to request, and as soon as practical after a Participant makes the request, the Plan will make, a distribution of a Discontinued Lifetime Income Investment. Distribution under this Article is limited to the 90-day period prior to the date on which the Lifetime Income Investment is no longer authorized to be held as an investment option under the Plan. Such distribution will be in the form of a Qualified Distribution, or in the form of a Qualified Plan Distribution Annuity Contract, as determined by the Administrator. The Administrator will administer this section in a reasonable, nondiscriminatory manner, and may authorize distributions of some Discontinued Lifetime Income Investments and not others.

7.3 Definitions. The terms “Lifetime Income Investment,” “Qualified Distribution” and “Qualified Plan Distribution Annuity Contract” have the meanings set forth in Code §401(a)(38)(B). A “Discontinued Lifetime Income Investment” is a Lifetime Income Investment which will no longer be authorized to be held as an investment option under the Plan.

DocuSign Envelope ID: 9F1FF151-8D59-4B12-BEAB-183E4FAFBCBE 13 7 745183-01

ARTICLE VIII

UPDATED LIFE EXPECTANCY TABLES

8.1 Application. This Article VIII is effective for distribution calendar years beginning on or after January 1, 2022.

8.2 New RMD Tables. Any Plan reference to the life expectancy tables detailed in Treas. Reg. §1.401(a)(9), such as the Uniform Life Table, the Single Life Table, or the Joint and Last Survivor Table, refers to these tables as published in Treas. Reg. §1.401(a)(9)-9 from time to time, and is subject to adjustment as described in Treas. Reg. §1.401(a)(9)-9(f).

ARTICLE IX

DIFFICULTY OF CARE PAYMENTS

9.1 Application. This Article IX is effective for Plan Years beginning after December 31, 2015.

9.2 Inclusion in 415 Compensation. The amount of a Participant’s Compensation for purposes of determining the annual addition limit under Code §415(c)(1)(B) is increased by the amount of Difficulty of Care Payments the Employer makes to the Participant.

9.3 Definition. A “Difficulty of Care Payment” is a payment described in Code §131(c)(1) made in connection with qualified foster individuals.

CITY OF SIMI VALLEY DEFERRED COMPENSATION PLAN
Name of Plan
City of Simi Valley
Name of Employer

Name of Authorized Representative Title
|S1
Signature Date

DocuSign Envelope ID: 9F1FF151-8D59-4B12-BEAB-183E4FAFBCBE 14 Certificate Of Completion
Envelope Id: 9F1FF1518D594B12BEAB183E4FAFBCBE Status: Delivered Subject: Action Required - SECURE Regulatory Amendment for Your Retirement Plan 745183-01:

Plan Number:

Category:

Client Service Representative Email:

Client Service Representative Name:

Social Security Number:

Source Envelope:

Document Pages: 11 Signatures: 0 Envelope Originator:

Certificate Pages: 8 Initials: 0 DocuSign - Empower Retirement- Plan Document AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
PO Box 1700
Denver, CO 80201
[email protected]
IP Address: 34.196.116.87
Record Tracking
Status: Original
9/30/2022 4:05:59 PM
Holder: DocuSign - Empower Retirement- Plan
Document
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Trevor Earle
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 9/30/2022 4:06:01 PM
Resent: 12/8/2022 9:01:32 AM
Viewed: 12/8/2022 9:05:55 AM
Electronic Record and Signature Disclosure:

Accepted: 12/8/2022 9:04:39 AM
ID: ff93a347-08db-41bf-a4d0-84c2479d3f3f
Company Name: Empower Retirement
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Lisa Braun-Ward
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 9/30/2022 4:06:00 PM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Sheryl McLeod
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 9/30/2022 4:06:01 PM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Witness Events Signature Timestamp
15 Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 9/30/2022 4:06:01 PM
Certified Delivered Security Checked 12/8/2022 9:05:55 AM Payment Events Status Timestamps
Electronic Record and Signature Disclosure
16 ELECTRONIC RECORD AND SIGNATURE CONSENT AGREEMENT

The purpose of this Electronic Record and Signature Consent Agreement (“Agreement”) is to formally agree to receive electronically and use an electronic signature on one or more of the document(s) included in the electronic envelope on the Docusign system (“Document Package”). By accepting this Agreement, you are agreeing that electronic signatures and electronic delivery (i.e., email or posting to a website) are the legal equivalent of an actual physical signature and actual physical delivery, respectively, for purposes of the Document Package.

This Agreement is voluntary. This Agreement is only required if you want to electronically sign and receive the Document Package.

If you do not want to electronically sign and receive the Document Package, do not check the ‘I agree to use electronic records and signatures’ box. If you do not want to electronically sign the Document Package, contact Empower Retirement for a standard PDF file that you can print and execute with wet signatures and return via regular mail. If you have any problems accessing PDF documents, contact Empower Retirement to discuss alternative arrangements. Note that even if you agree to electronically sign the Document Package, in the future after receiving an electronic document package, you will be able to choose whether or not to electronically sign that document or ask for another version to sign.

Please confirm your acceptance by checking the ‘I agree to use electronic records and signatures’ box. By checking this box, you acknowledge that you have carefully and thoroughly read the information below, you can access this information electronically to your satisfaction, and you agree to these terms and conditions:

1. Definitions:

The words “you” and “your” mean the account owner of the account..

Electronic Record and Signature Disclosure created on: 11/12/2020 5:31:39 AM Parties agreed to: Trevor Earle
17 “Empower Retirement” and the words “we,” “our,” and “us” mean Great-West Life & Annuity Insurance Company and its affiliates, successors, and assigns, including but not limited to Great- West Life & Annuity Insurance Company of New York, Great-West Funds, Inc., Great-West Trust Company, LLC, Great-West Capital Management, LLC, Advised Assets Group, LLC, GWFS Equities, Inc., and FASCore, LLC as applicable.

2. Scope of this Agreement:

This Agreement only applies to the electronic signatures and electronic delivery of the Document Package. This Agreement does not apply to any situation by law or otherwise that requires you to provide written notice or document to us, which must be done on paper unless we provide instruction to you how to deliver the item to us electronically. We may, in our sole discretion, choose to provide you with any document on paper, even if you have authorized electronic delivery.

3. Electronic Signatures:

By accepting this Agreement, you consent to use electronic signatures for the Document Package, and you agree that electronic signatures shall be deemed to be legally equivalent to actual physical signatures. The electronic signature process will be facilitated through DocuSign, Inc., which is separate company retained by us to facilitate this service, but has no other affiliation with Empower Retirement. One or more electronic documents will be included in an electronic envelope on the Docusign system and a link to the envelope will be e-mailed to you. These electronic documents may include but are not limited to service and account agreements between you and us, along with transaction forms and other documents related to your account with us.

1. Authentication and Qualified Security Procedures:

The electronic signature process through DocuSign provides authentication through the use of a digital audit trail. Generally, “authentication” refers to the act of attributing an electronic signature to the individual that signed the document, and determining that the document has not been changed since its execution.
18 In order to electronically sign the Document Package, you will need to access a unique link sent to your email address that you provided to us. After signing the Document Package, we will receive a court-admissible “Certificate of Completion.” This “Certificate of Completion” contains a digital audit trail of the transaction, including the signer names, authentication history, digital signatures, email addresses, signer IP addresses, chain of custody (i.e., sent, viewed, signed, etc.), trusted timestamps, geolocation capture of the signer (if provided), and completion status. By accepting this Agreement, you agree that these authentication and qualified security procedures are commercially reasonable.

4. Electronic Delivery:

By accepting this Agreement, you agree the electronic delivery of the Document Package emailed to you, is the legal equivalent of actual physical delivery, such as delivery by the United States Postal Service or hand-delivery, whether or not you actually see or view the Document Package. For purposes of this agreement, unless we receive actual notice of a delivery failure, we shall be deemed to have conclusively delivered the Document Package to you when we attach and send the document(s) to the email address that you provided to us.

5. Updating Your Email Address and Other Contact Information:

It is your responsibility to provide us with accurate and complete e-mail address and other contact information. You agree to maintain and promptly update any changes in this information.

6. Withdrawing Your Consent:

We will ask for your consent each time we present an envelope of electronic documents to you.

Once you give your consent for that envelope, you cannot withdraw it for that envelope but you can still choose not to sign any or all electronic documents included in that envelope. In addition, before you execute an electronic signature in DocuSign, the DocuSign system allows you to exit the electronic signing process. You should inform us that you no longer want to 19 electronically sign and then receive the document(s) in another manner by emailing Empower Retirement directly with your request.

7. Requesting Paper Copies:

At any time, you may request from us a paper copy of any record that we provided or made available electronically to you. You will have the ability to download and print documents we send to you through the DocuSign system during and immediately after the signing session. If you elect to create a DocuSign signer account, you may access them for a limited period of time, typically 30 days after such documents are first sent to you.

Additionally, subject to our document retention procedures, you may contact us and request another electronic or paper copy of the Document Package. If you wish for us to send you paper copies of any such documents, you will be charged a $0.00 per-page fee.

You may request a paper copy of the Document Package by contacting Empower Retirement directly with your request.

8. Required Hardware and Software:

Operating
Systems:

Windows XP, Windows Vista®, Windows® 7, Windows® 8 or higher; Mac OS® X or higher
Browsers:

Final release versions of Internet Explorer® 9.0 or above (Windows only); Mozilla Firefox 35 or above (Windows and Mac); Safari™ 7.0 or above (Mac only), Chrome 40 or above
PDF Reader: Acrobat® or similar software may be required to view and print PDF files Screen
Resolution: 1024 x 768 minimum
Enabled Security
Settings:

Allow per session cookies; Users accessing the Internet behind a Proxy Server must enable HTTP 1.1 settings via proxy connection

20 These minimum requirements are subject to change. If these requirements change before the Document Package is fully executed, you will be asked to re-accept this Agreement. Pre-release (e.g. beta) versions of operating systems and browsers are not supported.

9. Docusign

We have entered into an agreement with DocuSign, Inc. (“DocuSign”) to make their electronic system available to facilitate your receipt and electronic signature of the Document Package. Your use of the DocuSign system is subject to the terms and conditions of DocuSign’s system. We are not responsible for the DocuSign system and we disclaim any representations and all warranties regarding the DocuSign system.

10. Acknowledgement and Consent:

To confirm to us that you can access this information electronically, please verify that you were able to read this Agreement and that you also were able to: print on paper or electronically save for your future reference and access, or that you were able to e-mail to an address where you will be able to print on paper or save it for your future reference and access. By checking the ‘I agree to use electronic records and signatures’ box, I confirm that:

 I meet the required hardware and software requirements listed above;  I can access and read this Agreement;
 I can print on paper the Document Package or save or send the Document Package to a place where I can print it for future reference and access;  I have read this Agreement and agree to be bound by its terms and conditions.

10. Contacting Empower Retirement
Please contact us to let us know of changes as to how we may contact you electronically, to request paper copies of certain information to us, and to withdraw your consent to receive the Document Package:

To contact us by e-mail: [email protected] 21 To contact us by phone: 866-317-6586
Great-West Financial®, Empower Retirement, and Great-West InvestmentsTM are the marketing names of Great-West Life & Annuity Insurance Company, Corporate Headquarters: Greenwood Village, CO; Great-West Life & Annuity Insurance Company of New York, Home Office: New York, NY; and their subsidiaries and affiliates, including registered investment advisers Advised Assets Group, LLC and Great-West Capital Management, LLC. ©2018 Great-West Life & Annuity Insurance Company. All rights reserved. www.empower- retirement.com
22 FAQ: Plan Document Amendment – CARES

Q: What is CARES and how does it impact my retirement plan? A: The Coronavirus Aid, Relief and Economic Security Act (CARES) allowed plan sponsors to:
• Suspend 2020 required minimum distributions (RMDs),
• Permit CARES distributions and loans during 2020, and • Extend loan repayments during 2020.

Attached is a chart with additional information on CARES. Prior communications also covered CARES in more detail and some key provisions that would apply to your plan, including defaults and optional provisions.

Q: Do we need to amend our plan document for CARES?
A: Yes. The amendment we provide to you for CARES will depend on your type of plan and optional provisions that apply to your plan.

Some CARES amendments have been adopted by us as sponsor of the plan document and do not require a plan sponsor signature. Other CARES amendments will require customization and plan sponsor signature. The cover letter provided along with your amendment will inform you if your signature is required. A plan amendment fee will apply if your amendment requires customization and plan sponsor signature. Prior guidance from the Department of Labor has indicated that expenses for required compliance amendments can be paid from plan assets.

Also, some CARES amendments may reflect the availability of special disaster relief for federally declared disasters for reasons other than COVID that occurred during 2020 and relief from the partial plan termination 100% vesting requirements. Not all documents needed to be amended to include those provisions, so they may not be included in your amendment.

Q: What is the deadline for the CARES amendment?
A: The deadline to have a signed CARES amendment in place covering the CARES distribution and loan provisions is the last day of the plan year beginning on or after January 1, 2022 (2024 for Government Plans). Although the deadline to amend for the CARES RMD suspension provisions was extended to a later date, the CARES amendment being provided to you covers both aspects and therefore needs to be adopted by December 31, 2022 (2024 for Government plans) for calendar year plans.

Q: Is a Summary of Material Modifications (SMM) required to update the Summary Plan Description (SPD)? When does it need to be provided to participants?
A: No, an SMM is not required for CARES. SMMs are required to update the terms of an SPD based on the plan’s terms going forward. Given the timing deadline for the amendment and the temporary nature of the relief granted under CARES, an SMM is not required.

Q: Does my plan need a CARES amendment if I recently restated or amended my plan? A: Yes, the amendment needed for CARES was not included in those documents.

Q: What other required regulatory amendments may apply to my Plan Document? A: The Setting Every Community Up for Retirement Enhancement Act (SECURE) will also require an amendment to your plan document and will be provided in a separate communication.

Q: Can I elect any of the CARES provisions going forward? A: No. The CARES relief is no longer available. The elections made in the amendment are consistent with how provisions applied to your plan according to our records.

DocuSign Envelope ID: 4F35FF16-7A5F-4005-B1EE-9BA960CAA85E 23 CARES ACT KEY PROVISIONS

Following is a summary of the key provisions in the CARES Act plan amendment.

Provision Plan types impacted Description Effective date Permitted
Coronavirus-
Related
Distributions (CRDs)
Defined contribution
401(a), 401(k), 403(b)
and governmental
457(b) plans
A participant who was a Qualified Individual1
could withdraw up to $100,000 as a
Coronavirus-Related Distribution (CRD). A plan
/plan sponsor could rely on the participant’s
representation that they qualified for a CRD
unless the plan sponsor had actual knowledge
to the contrary. CRDs were exempt from the
10% additional tax and were eligible for other
favorable tax treatment. Within 3 years after
the participant received the CRD, they may
repay all or a portion of it, in one or more
payments, to a vehicle that would accept a
rollover from the participant at that time.

Distributions were
permitted from 1/1/2020
through 12/30/2020.

Increased the
maximum amount
of a participant
loan
Defined contribution
401(a), 401(k),
403(b), and
governmental 457(b)
plans
The maximum amount of a participant’s plan
loan can’t exceed the lesser of $50,000 or 50%
of the participant’s vested balance at the time
the loan is initiated. CARES temporarily
increased this limit for a Qualified Individual1
to be the lesser of $100,000 or 100% of the
vested balance.

Available for participant
loans taken from
3/27/2020 through
9/22/2020.

Extended
repayment and
maturity dates for
participant loans
Defined contribution
401(a), 401(k), 403(b)
and governmental
457(b) plans
Specified participant loan repayments could be
suspended by a Qualified Individual1.

Subsequent repayments and the loan’s
maturity date could be adjusted due to the
delay. Interest continued to accrue on the
loan during the delay period.

Treatment is available for
loans that existed at any
time from 3/27/2020
through 12/31/2020
Temporarily waived
required minimum
distribution rules
Defined contribution
401(a), 401(k), 403(b)
and governmental
457(b) plans
Required minimum distribution (RMD) rules
were waived for certain distributions payable
in 2020. The waiver also applied to 2020 “first
time” RMDs with a required beginning date of
4/1/2021. Participants could elect to receive
payments that otherwise would have been
waived. 2020 is not considered when
determining the 5-year period for distribution
to a beneficiary.

Available for certain RMD
payments that were
payable in, or attributable
to, 2020

1CARES defined a Qualified Individual as an individual diagnosed with SARS-CoV-2 or coronavirus disease 2019 (COVID-19) by a test approved by the Centers for Disease Control and Prevention or an individual whose spouse or dependent (as defined in Internal Revenue Code § 152) was diagnosed by such a test. A Qualified Individual also included an individual who experienced adverse financial consequences due to COVID-19 as a result of (a) being quarantined, furloughed or laid off or having work hours reduced; (b) being unable to work due to lack of childcare; (c) closing or reduction in hours of a business owned or operated by the individual; (d) having pay or self-employment income reduced; (e) having a job offer rescinded or start date for a job delayed; or (f) having a spouse or someone who shared the individual’s principal residence affected by any of (a) through (e).

DocuSign Envelope ID: 4F35FF16-7A5F-4005-B1EE-9BA960CAA85E 24 1 745183-01

CARES INTERIM AMENDMENT

ARTICLE I - PREAMBLE

1.1 Adoption of Amendment. The Employer identified on the execution page adopts this Amendment to implement provisions of the CARES Act as they apply to governmental Code section 457(b) plans.

1.2 Plan. This Amendment applies to the Plan identified on the execution page of the Amendment.

1.3 General. This Amendment supersedes the provisions of the Plan identified below to the extent those provisions are inconsistent with the provisions of this Amendment. Except as otherwise provided in this Amendment, any Article or Section reference in this Amendment refers only to this Amendment and is not a reference to the Plan. The Article and Section numbering in this Amendment is solely for purposes of this Amendment and does not relate to the Plan article, section, or other numbering designations. If the Employer restates the Plan, then this Amendment shall remain in effect after such restatement unless the provisions in this Amendment are restated or otherwise become obsolete (e.g., if the Plan is restated onto a plan document which incorporates these provisions). This Amendment is effective March 27, 2020 (or as soon as administratively practical thereafter).

ARTICLE II - DEFINITIONS

2.1 Definitions. Except as otherwise provided in this Amendment, terms defined in the Plan will have the same meaning in this Amendment. The following definitions apply specifically to this Amendment:

2.2 CARES Act. The “CARES Act” is the Coronavirus Aid, Relief, and Economic Security Act. This Amendment shall be interpreted and applied to comply with the CARES Act.

2.3 Qualified Individual. A “Qualified Individual” means any individual who meets one or more of the criteria described in paragraphs (a), (b), (c), or (d). Participants, Alternate Payees and Beneficiaries of deceased Participants can be treated as Qualified Individuals. The Administrator may rely on an individual’s certification that the individual satisfies a condition to be a Qualified Individual unless the Administrator has actual knowledge to the contrary. In applying the criteria, “COVID-19” means either the virus SARS–CoV–2 or coronavirus disease 2019; “an approved test” means a test approved by the Centers for Disease Control and Prevention (including a test authorized under the Federal Food, Drug, and Cosmetic Act); and a “member of the individual’s household” means someone who shares the individual’s principal residence. The criteria are as follows:
(a) The individual was diagnosed with COVID-19 by an approved test; (b) The individual’s spouse or dependent (as defined in Code Section 152) was diagnosed with COVID-19 by an approved test;
(c) The individual has experienced adverse financial consequences because: (i) the individual or the individual’s spouse, or a member of the individual’s household was quarantined, furloughed or laid off, or had work hours reduced due to COVID-19; (ii) the individual, the individual’s spouse, or a member of the individual’s household was unable to work due to lack of childcare due to COVID-19; (iii) A business owned or operated by the individual, the individual’s spouse, or a member of the individual’s household closed or reduced hours due to COVID-19; or (iv) the individual, the individual’s spouse, or a member of the individual’s household had a DocuSign Envelope ID: 4F35FF16-7A5F-4005-B1EE-9BA960CAA85E 25 2 745183-01
reduction in pay (or self-employment income) due to COVID-19 or had a job offer rescinded or start date for a job delayed due to COVID-19; or
(d) The individual satisfies any other criteria determined by the Treasury or the IRS.

ARTICLE III – CORONAVIRUS-RELATED DISTRIBUTIONS AND LOANS

3.1 Relief for Qualified Individuals. The provisions of this Article III apply only to the extent a distribution or loan has been made to a Qualified Individual under the CARES Act. If the Plan does not operationally apply the rules under this Article III, such provisions do not apply to the Plan. The Administrator shall document through administrative procedures (including designating accounts from which Coronavirus-Related Distributions and loans may be taken) or otherwise the manner in which the Plan operationally applied the rules under this Article III.

3.2 Coronavirus-Related Distribution(s). A Qualified Individual may take one or more Coronavirus- Related Distributions. A “Coronavirus-Related Distribution” means a distribution to a Qualified Individual during the period beginning January 1, 2020 and ending December 30, 2020. The total amount of Coronavirus-Related Distributions to a Qualified Individual pursuant to this Amendment from all plans maintained by the Employer, or any related employer described in Code Section 414(b), (c), (m), or (o), shall not exceed $100,000. The Coronavirus-Related Distributions from the Plan to a Qualified Individual will not exceed the amount of the individual’s vested account balance or the present value of the individual’s vested accrued benefit. The provisions of this Section 3.2 will apply notwithstanding any limitation in the Plan on partial distributions or any otherwise applicable Plan or administrative limits on the number of allowable distributions.

3.3 Repayment of Coronavirus-Related Distribution(s). If the Plan permits a Participant to make rollover contributions, then a Participant who received a Coronavirus-Related Distribution (from this Plan and/or another eligible retirement plan as defined in Code Section 402(c)(8)(B)) may make one or more contributions to the Plan, as rollover contributions, in an aggregate amount not to exceed the amount of such distribution at any time during the 3-year period beginning on the day after receipt of the Coronavirus-Related Distribution.

3.4 Loan Relief.
(a) Increased Loan Limit. Notwithstanding the loan limitation that otherwise would apply, the Plan will determine the loan limit under Code Section 72(p)(2)(A) for a loan to a Qualified Individual, made during the period beginning March 27, 2020 and ending September 22, 2020, by substituting “$100,000” for “$50,000,” and by substituting “100% of the present value of the nonforfeitable accrued benefit of the employee under the Plan” for “one-half of the present value of the nonforfeitable accrued benefit of the employee under the Plan” (or its equivalent). (b) Extension of Loan Repayments. If a Qualified Individual has an outstanding loan from the Plan on or after March 27, 2020, then: (1) if the date for any repayment of such loan occurs during the Suspension Period, the due date is extended for the Extension Period; (2) the due date of the loan will be extended by the Extension Period; (3) the Plan will adjust any subsequent repayments to reflect the extension of the due date and any interest accrued during the Suspension Period; and (4) the Plan will disregard the Extension Period in determining the 5-year period and the loan term under Code Section 72(p)(2)(B) or (C). The Suspension Period will begin March 27, 2020 and end December 31, 2020. The Extension Period will be one year. The provisions of this Section 3.4(b) will be applied in accordance with Section 5.B. of Notice 2020- DocuSign Envelope ID: 4F35FF16-7A5F-4005-B1EE-9BA960CAA85E 26 3 745183-01
50, or any subsequent applicable guidance, and the adjustment described in (3) may reflect the “safe harbor” described therein.

ARTICLE IV – RMD WAIVERS FOR 2020

4.1 Waiver of RMDS. A Participant or Beneficiary who would have been required to receive a 2020 RMD or an Extended RMD that is scheduled to be paid in annual installments will not receive the distribution unless the Participant or Beneficiary chooses to receive the distribution. A Participant or Beneficiary who would have been required to receive an Extended 2020 RMD (unless it is scheduled to be paid in annual installments) will receive the distribution unless the Participant or Beneficiary chooses not to receive the distribution. The deadline for a Participant or Beneficiary of a deceased Participant to make the election to use the 5-year rule or the life expectancy rule may be extended to reflect the adoption of Code Section 401(a)(9)(I). If Code Section 401(a)(9)(B)(ii) applies, the five-year period described in such provision shall be determined without regard to the 2020 calendar year.

4.2 Direct Rollovers. Notwithstanding the provisions of the Plan relating to required minimum distributions under Code Section 401(a)(9), and solely for purposes of applying the direct rollover provisions of the Plan, a direct rollover will be offered only for distributions that would be eligible rollover distributions without regard to Code Section 401(a)(9)(I).

4.3 Definitions. “RMDs” means required minimum distributions described in Code Section 401(a)(9). “2020 RMDs” means required minimum distributions the Plan would have been required to distribute in 2020 (or permitted to pay in 2021 for the 2020 calendar year for a Participant with a required beginning date of April 1, 2021) but for the enactment of Code Section 401(a)(9)(I). “Extended 2020 RMDs” means one or more payments in a series of substantially equal distributions (that include the 2020 RMDs) made at least annually and expected to last for the life (or life expectancy) of the Participant, the joint lives (or joint life expectancy) of the Participant and the Participant’s designated Beneficiary, or for a period of at least 10 years.

4.4 Installment Payments. A Participant or Beneficiary receiving payment of 2020 RMDs or 2020 Extended RMDs pursuant to this Article IV may receive them in any method (including installments or partial distributions) which would have been permitted under the terms of the Plan if the amounts would have been RMDs but for the enactment of Code Section 401(a)(9)(I).

CITY OF SIMI VALLEY DEFERRED COMPENSATION PLAN
Name of Plan
City of Simi Valley
Name of Employer

Name of Authorized Representative Title
|S1|
Signature Date

DocuSign Envelope ID: 4F35FF16-7A5F-4005-B1EE-9BA960CAA85E 27 Certificate Of Completion
Envelope Id: 4F35FF167A5F4005B1EE9BA960CAA85E Status: Delivered Subject: Action Required - CARES Regulatory Amendment for Your Retirement Plan 745183-01 Plan Number:

Category:

Client Service Representative Email:

Client Service Representative Name:

Social Security Number:

Source Envelope:

Document Pages: 5 Signatures: 0 Envelope Originator:

Certificate Pages: 8 Initials: 0 DocuSign - Empower Retirement- Plan Document AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
PO Box 1700
Denver, CO 80201
[email protected]
IP Address: 34.196.116.87
Record Tracking
Status: Original
9/8/2022 1:30:37 PM
Holder: DocuSign - Empower Retirement- Plan
Document
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Trevor Earle
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 9/8/2022 1:30:39 PM
Resent: 12/8/2022 9:01:30 AM
Viewed: 12/8/2022 9:04:39 AM
Electronic Record and Signature Disclosure:

Accepted: 12/8/2022 9:04:39 AM
ID: ff93a347-08db-41bf-a4d0-84c2479d3f3f
Company Name: Empower Retirement
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Sheryl McLeod
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 9/8/2022 1:30:38 PM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 9/8/2022 1:30:38 PM
Certified Delivered Security Checked 12/8/2022 9:04:39 AM 28 Payment Events Status Timestamps
Electronic Record and Signature Disclosure
29 ELECTRONIC RECORD AND SIGNATURE CONSENT AGREEMENT

This Agreement is voluntary. This Agreement is only required if you want to electronically sign and receive the Document Package.

1. Definitions:

The words “you” and “your” mean the account owner of the account..

Electronic Record and Signature Disclosure created on: 11/12/2020 5:31:39 AM Parties agreed to: Trevor Earle
30 “Empower Retirement” and the words “we,” “our,” and “us” mean Great-West Life & Annuity Insurance Company and its affiliates, successors, and assigns, including but not limited to Great- West Life & Annuity Insurance Company of New York, Great-West Funds, Inc., Great-West Trust Company, LLC, Great-West Capital Management, LLC, Advised Assets Group, LLC, GWFS Equities, Inc., and FASCore, LLC as applicable.

2. Scope of this Agreement:

3. Electronic Signatures:

1. Authentication and Qualified Security Procedures:

The electronic signature process through DocuSign provides authentication through the use of a digital audit trail. Generally, “authentication” refers to the act of attributing an electronic signature to the individual that signed the document, and determining that the document has not been changed since its execution.
31 In order to electronically sign the Document Package, you will need to access a unique link sent to your email address that you provided to us. After signing the Document Package, we will receive a court-admissible “Certificate of Completion.” This “Certificate of Completion” contains a digital audit trail of the transaction, including the signer names, authentication history, digital signatures, email addresses, signer IP addresses, chain of custody (i.e., sent, viewed, signed, etc.), trusted timestamps, geolocation capture of the signer (if provided), and completion status. By accepting this Agreement, you agree that these authentication and qualified security procedures are commercially reasonable.

4. Electronic Delivery:

5. Updating Your Email Address and Other Contact Information:

It is your responsibility to provide us with accurate and complete e-mail address and other contact information. You agree to maintain and promptly update any changes in this information.

6. Withdrawing Your Consent:

We will ask for your consent each time we present an envelope of electronic documents to you.

Once you give your consent for that envelope, you cannot withdraw it for that envelope but you can still choose not to sign any or all electronic documents included in that envelope. In addition, before you execute an electronic signature in DocuSign, the DocuSign system allows you to exit the electronic signing process. You should inform us that you no longer want to 32 electronically sign and then receive the document(s) in another manner by emailing Empower Retirement directly with your request.

7. Requesting Paper Copies:

You may request a paper copy of the Document Package by contacting Empower Retirement directly with your request.

8. Required Hardware and Software:

Operating
Systems:

Windows XP, Windows Vista®, Windows® 7, Windows® 8 or higher; Mac OS® X or higher
Browsers:

Allow per session cookies; Users accessing the Internet behind a Proxy Server must enable HTTP 1.1 settings via proxy connection

33 These minimum requirements are subject to change. If these requirements change before the Document Package is fully executed, you will be asked to re-accept this Agreement. Pre-release (e.g. beta) versions of operating systems and browsers are not supported.

9. Docusign

10. Acknowledgement and Consent:

To contact us by e-mail: [email protected] 34 To contact us by phone: 866-317-6586
Great-West Financial®, Empower Retirement, and Great-West InvestmentsTM are the marketing names of Great-West Life & Annuity Insurance Company, Corporate Headquarters: Greenwood Village, CO; Great-West Life & Annuity Insurance Company of New York, Home Office: New York, NY; and their subsidiaries and affiliates, including registered investment advisers Advised Assets Group, LLC and Great-West Capital Management, LLC. ©2018 Great-West Life & Annuity Insurance Company. All rights reserved. www.empower- retirement.com
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Simi Valley City CouncilFebruary 27, 2023

Simi Valley City Council
February 27, 2023