§ 2-27. Deferred compensation plan.

(a)

Established. Pursuant to the authority granted by the General Law Village Act, the village hereby establishes a deferred compensation plan under section 457 of the Internal Revenue Code of 1986, as amended, whereby an officer or employee of the village may be eligible to defer that individual's compensation in a different manner and at a different time thereby more effectively providing for said officer's or employee's retirement or death and to defer federal and state income tax liability on said deferred compensation to the time of receipt by said officer or employee or said individual's beneficiary.

(b)

Eligible individuals. All village officers and employees who perform services for the village for 30 hours per week or more on a regular basis and who have provided three months of consecutive service to the village shall be eligible to participate in the deferred compensation plan established pursuant to this section and may elect to participate in the plan by entering into a written deferred compensation agreement in such form as the village council shall establish from time to time.

(c)

Implementation, administration and interpretation of the plan. In order to implement the deferred compensation plan, the village council may enter into a contract(s) with an insurance company authorized to do business with the state to provide for the administration of the deferred compensation plan. The village council shall have full power and authority to adopt rules and regulations for the administration of the deferred compensation plan and may, in its discretion, adopt the provisions of a contract entered into pursuant to this section as said rules and regulations. However, to the extent that any rules and regulations adopted, interpreted, altered, amended, or revoked by the village council shall be inconsistent with the provisions of this section, the provisions of this section shall supersede said rules and regulations.

(d)

Tax ramifications. The deferred compensation plan and agreements provided for by this section are intended to comply with section 457 of the Internal Revenue Code of 1986, as amended, pertaining to deferred compensation plans of the state and local governments. Any provision contained in this section, which causes deferred compensation to be taxed prior to receipt thereof, shall be deemed null and void. However, no guarantee is given to any officer or employee of the village or to any beneficiaries or assigns of such individuals, as to the taxable status of any amounts of compensation deferred under the deferred compensation plan established pursuant to this section and the village assumes no responsibility or liability to any officer or employee (or their successors or assigns) of the village or to any adverse tax determination. Any provision of the deferred compensation plan, or agreement is made hereunder, or any village rules or regulations adopted pursuant to this section which are contrary to the Internal Revenue Code of 1986, as amended, or regulations adopted thereunder, shall be deemed to be void by such Internal Revenue Code of 1986, as amended, or regulations adopted thereunder.

(Ord. No. 299, §§ I—IV, 6-17-2002)