Contract_Attachment_3_(Part%202)_UT_403(b)_Plan_Document_Amendment_Two.pdf

THE UNIVERSITY OF TENNESSEE 403(b) PLAN

AMENDMENT TWO

WHEREAS, the University of Tennessee ("University") established the University of Tennessee 403(b) Plan ("Plan"), effective January 1, 2009, and amended the Plan once thereafter effective October 9, 2019; and

WHEREAS, the Chair of the Board of Trustees for the Tennessee Consolidated Retirement System is the Administrator of the Plan; and

WHEREAS, the Administrator reserved the right to amend the Plan pursuant to Section

8.2 of the Plan; and

WHEREAS, the Administrator desires to amend the Plan to make certain required and discretionary changes.

NOW, THEREFORE, the Plan is hereby amended, effective -----~ 2020, unless specifically stated otherwise, as set forth below:

1. A Preamble is added to the Plan to be and read as follows:

The University of Tennessee ("University") established the University of Tennessee 403(b) Plan ("Plan"), effective January 1, 2009, under which employees of certain institutions of higher education within the meaning of Section l 70(b)(l)(A)(ii) of the Internal Revenue Code ("Code") may voluntarily choose to supplement their retirement benefits. Effective October 9, 2019, pursuant to Tennessee Code Annotated, Section 8-25-104, the State of Tennessee assumed sponsorship of the Plan and the Chair of the Board of Trustees for the Tennessee Consolidated Retirement System became the Administrator of the Plan.

The Plan is, and intended to remain, a defined contribution plan under Code Section 403(b), and is a governmental plan within the meaning of Code Section 414(d) and Section 3(32) of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). As a governmental plan, ERISA does not apply.

2. Section 2.1 of the Plan, Eligibility. is hereby amended to remove the last sentence.

3. Section 2.2(a) of the Plan is hereby amended to be and read as follows:

2.2 "Contributions" (a) Elective Deferrals. An Employee elects to become a Participant by executing an election to reduce his or her Compensation ( and have that amount contributed as an Elective Deferral on his or her behalf) and filing it with the Employer. This Compensation reduction election shall be made on the agreement provided by the Employer under which the Employee agrees to be bound by all the terms and conditions of the Plan. The Administrator may establish an annual minimum deferral amount no higher than $200, and may change such minimum to a lower amount from time to time. The participation election shall also include designation of the Funding Vehicles and Accounts therein to which

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Elective Deferrals are to be made. Any such election shall remain in effect until a new election is filed. Only an individual who performs services for the Employer as an Employee may reduce his or her Compensation under the Plan. Each Employee will become a Participant in accordance with the terms and conditions of the Individual Agreements. Except as otherwise provided in the Plan, all Elective Deferrals shall be made on a pre-tax basis. An Employee shall become a Participant as soon as administratively practicable following the date applicable under the Employee's election.

4. Effective January 1, 2009, a new paragraph is hereby added to the end of Section 5.2, Minimum Distributions, to be and read as follows:

For 2009, unless otherwise provided in the Individual Agreement, the minimum distribution requirements of section 401(a)(9) of the Code will be satisfied as provided in either subsection (1) or (2) below, as determined by the Vendor responsible for the Participant's required minimum distribution and in accordance with the Individual Agreement:

( 1) A Participant or Beneficiary who would have been required to receive required minimum distributions for 2009 but for the enactment of Code Section 401(a)(9)(H) ("2009 RMDs"), and who would have satisfied that requirement by receiving distributions that are (i) equal to the 2009 RMDs or (ii) one or more payments in a series of substantially equal distributions (that include the 2009 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 ten (10) years ("Extended 2009 RMDs"), will receive those distributions for 2009 unless the Participant or Beneficiary chooses not to receive such distributions.

Participants and Beneficiaries described in the preceding sentence will be given the opportunity to elect to stop receiving the distributions described in the preceding sentence.

(2) A Participant or Beneficiary who would have been required to receive 2009 RMDs, and who would have satisfied that requirement by receiving distributions that are (i) equal to the 2009 RMDs or (ii) Extended 2009 RMDs, will not receive those distributions for 2009 unless the Participant or Beneficiary chooses to receive such distributions. Participants and Beneficiaries described in the preceding sentence will be given the opportunity to elect to receive the distributions described in the preceding sentence.

Further, if provided by the Individual Agreement, the 2009 RMDs and Extended 2009 RMDs will be treated as eligible rollover distributions in 2009.

5. Effective January 1, 2020, Section 5 .4 of the Plan is hereby amended to be and read as follows:

5.4 Hardship Withdrawals. If authorized under the Adoption Agreement, hardship withdrawals shall be permitted under the Plan to the extent permitted by the Individual Agreements controlling the Account assets to be withdrawn to satisfy the hardship.

The Individual Agreements shall provide for the exchange of information among the Employer and the Vendors to the extent necessary to implement the Individual Agreements. Notwithstanding any Individual Agreement, the Plan only permits hardship withdrawals that satisfy the "safe harbor" standards with respect to establishing an immediate and heavy financial need (under Treas. Reg. §1.401(k)- 1 ( d)(3)(ii)(B) and satisfying the no alternative means reasonably available requirement (under Treas. Reg. 1.40l(k)-l(d)(3)(iii)(B)).

6. Paragraph 9.7 of the Plan is hereby amended to be and read as follows:

9. 7 Procedure When Distributee Cannot Be Located. The Administrator shall make all reasonable attempts to determine the identity and address of a Participant or a Participant's Beneficiary entitled to benefits under the Plan. For this purpose, a reasonable attempt means the following:

• the mailing by certified mail of a notice to the last known mailing address as shown on the records of the Employer or Administrator,

• a review of plan and employment records and other publicly available records for a more current address,

• attempted contact with a designated plan beneficiary to obtain updated contact information, and

• a reasonable use of either a commercial locator service, a credit reporting agency, or a proprietary internet search tool for locating individuals.

If the Administrator is unable to locate such a person entitled to benefits hereunder, or if there has been no claim made for such benefits, the Funding Vehicle shall continue to hold the benefits due such person.

7. A new Section 11 is hereby added to be and read as follows:

Section 11 Heroes Earnings Assistance and Relief Tax Act (HEART Act)

11.1. Death Benefits. If a Participant dies while performing qualified military service (as defined in Code §414(u)), the Participant's Beneficiary is entitled to any additional benefits ( other than benefit accruals relating to the period of qualified military service) provided under the Plan as if the Participant had resumed employment and then terminated employment on account of death. Moreover, the Plan will credit the Participant's qualified military service as service for vesting purposes, as though the Participant had resumed employment under USERRA immediately prior to the Participant's death.

11.2 Benefit Accrual. The Plan treats an individual who dies or becomes disabled (as defined under the terms of the Plan) while performing qualified military service with respect to the Employer as if the individual had resumed employment in accordance with the individual's reemployment rights under USERRA, on the day preceding death or disability (as the case may be) and terminated employment on the actual date of death or disability.

11.3 Differential Wage Payments. Differential wage payments (as described herein) will be considered Compensation and Includible Compensation for all Plan purposes.

(a) An individual receiving a differential wage payment, as defined by Code §3401(h)(2), is treated as an employee of the employer making the payment;

(b) The differential wage payment is treated as compensation for purposes of Code §415(c)(3) and Treasury Reg. §1.415(c)-2; and

( c) The Plan is not treated as failing to meet the requirements of any provision described in Code §414(u)(l)(C) by reason of any contribution or benefit which is based on the differential wage payment.

This section applies only if all employees of the Employer performing service in the uniformed services described in Code §3401(h)(2)(A) are entitled to receive differential wage payments (as defined in Code §3401(h)(2)) on reasonably equivalent terms and, if eligible to participate in a retirement plan maintained by the Employer, to make contributions based on the payments on reasonably equivalent terms (taking into account Code §§410(b)(3), (4), and (5)).

11.4 Deemed Severance. Notwithstanding Section 11.3(a), if a Participant performs service in the uniformed services (as defined in Code §414(u)(12)(B)) on active duty for a period of more than 30 days, the Participant will be deemed to have Severance from Employment solely for purposes of eligibility for distribution of amounts not subject to Code §412. However, the Plan will not distribute such a Participant's Account on account of this deemed severance unless the Participant specifically elects to receive a benefit distribution hereunder. If a Participant elects to receive a distribution on account of this deemed severance, then the individual may not make an Elective Deferral or employee contribution during the 6-month period beginning on the date of the distribution. If a Participant would be entitled to a distribution on account of a deemed severance, and a distribution on account of another Plan provision (such as qualified reservist distribution), then the other Plan provision will control and the 6-month suspension will not apply.

8. A new Appendix A is hereby added regarding Plan Administration.

9. In all other respects, the Plan shall be and remain unchanged.

IN WITNESS WHEREOF, this Amendment Two is executed this __ day of

2020. ------~

By:_---=-------,~ '----------+----P--~~'--"-""""""v------:---+- -----i=-.E-+____,,,_- David H. Lillard, r. , Chair of the Board o Tennessee Consoli ated Retirement System

By: ________________ _

Stuart McWhorter, Commissioner Department of Finance and Administration

By: _________________ _ Bo Watson, Chair Senate Finance, Ways and Means Committee

"By: ________________ _ Susan Lynn, Chair House Finance, Ways and Means Committee

Date

Date

, 2020. -------

By: _________________ _ David H. Lillard, Jr., Chair of the Board of Trustees of the Tennessee Consolidated Retirement System

By: ________________ _ Stuart McWhorter, Commissioner Department of Finance and Administration

By: _________________ _ Bo Watson, Chair Senate Finance, Ways and Means Committee

By:_~-.-=--...!'.......¥-+---1------------- Susan Lynn, Chair House Finance, Wa and Means Committee

Date

Date

------' 2020.

By: __________________ _

David H. Lillard, Jr., Chair of the Board of Trustees of the Tennessee Consolidated Retirement System

By: ____________________ _

Stuart McWhorter, Commissioner Department of Finance and Administration

J / /1

1.11 I-tr ;1 V/4./~

By: V

Bo Watson, Chair Senate Finance, Ways and Means Committee

By: __________________ _

Susan Lynn, Chair House Fim1pce, Ways and Means Committee

Date

Date

. I If . 2oZv

, 2020. -------·

By: _ ________________ _

David H. Lillard, Jr., Chair of the Board of Trustees of the Tennessee Consolidated Retirement System

By Stu~o~~i&~ Department of Finance and Administration

By: _________________ _

Bo Watson, Chair Senate Finance, Ways and Means Committee

By: _________________ _

Susan Lynn, Chair House Finance, Ways and Means Committee

Date

Date

APPENDIX A

UNIVERSITY OF TENNESSEE 403(b) PLAN

PLAN ADMINISTRATION

I. Responsibility of the Employer

The Employer is responsible for eligible Employee enrollment and participation, including the following:

(a) Notifying its eligible Employees of their rights and responsibilities with respect to participation under the Plan;

(b) Providing eligible Employees with applicable administrative forms, including a salary reduction agreement;

( c) Enrolling eligible Employees in the Plan and terminating participation under the Plan for Participants who have a Severance from Employment;

( d) Determining questions of eligibility to participate in the Plan;

( e) Timely remitting contributions on behalf of Participants in accordance with their salary reduction agreement elections to the Vendors; and

(f) Certifying that Participants have had a Severance from Employment or are Disabled for purposes of distribution eligibility.

The Employer shall have all power necessary or convenient to enable it to exercise this responsibility and authority under the Plan.

II. Responsibility of the Administrator

The Administrator is responsible for the following:

(a) Writing, construing and interpreting the Plan document, including any ambiguities, and determining all questions of fact or law arising under the Plan document;

(b) Selecting and contracting with the Vendors and other service providers under the Plan;

( c) Selecting the Funding Vehicles and investment options available for investing contributions in the Plan;

( d) Correcting any defect, supplying any om1ss10n, or reconciling any inconsistency in the Plan document in such manner and to such extent as the Administrator may deem expedient and, subject to the provisions of the Plan document regarding claims to benefits, the Administrator should be the sole and final judge of such expediency; and

(e) Accepting service of legal process for the Plan through the Tennessee Attorney General's Office;

(f) Monitoring contribution limits on a Plan level for Participants;

(g) Amending and terminating the Plan document; and

(h) Adopting policies and procedures under the Plan, including qualified domestic relations order procedures.

The Administrator shall have all powers necessary or convenient to enable the Administrator to exercise the Administrator's authority under the Plan document.

III. Delegation by Administrator

The Administrator may delegate to an individual, committee, or organization the duty to carry out the Administrator's fiduciary duties or other responsibilities under the Plan. Any such individual, committee or organization delegated fiduciary duties shall be a fiduciary until the Administrator revokes such delegation. A delegation of the Administrator's duties or responsibilities may be revoked by the Administrator without cause or advance notice. Such individual, committee, or organization shall have the same power and authority with respect to such delegated fiduciary duty or other responsibility as the Administrator has under the Plan.

IV. Advice to Administrator

The Administrator may employ or contract with one or more persons to render advice with regard to the Administrator's duties, responsibilities and authority under the Plan.