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The City of Portland, Oregon

Portland, Oregon

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5.09.055 Catch-up Provisions

(Amended by Ordinance Nos. 179417, 182168, 186746 and 187574, effective February 10, 2016.)

A.  Three year catch-up provision:  Notwithstanding the language of Subsection 5.09.050 A.2., during each of a Participant’s last three (3) taxable years ending before the Participant attains Normal Retirement Age, the maximum amount deferred shall be the lesser of:

1.  the maximum allowed under Subsection 5.09.050 A. 2. for the current taxable year plus so much of the maximum established for purposes of Subsection 5.09.050 A.2. for prior taxable years as has not previously been deferred under Subsection 5.09.050 A.2.; or

2.  Two times the applicable dollar amount under Subsection 5.09.050 A.2. above.

For the purposes of this section, a prior year shall be taken into account only if such year began after December 31, 1981, and the participant was eligible to participate in the plan during all or a portion of the year.  For purposes of counting prior years, only years of service with the City may be considered.  Participant may only make this election once with respect to any IRC section governmental 457(b) deferred compensation plan of the employer based on the Participant’s basic defined benefit plan of the State.

B.  Age 50 catch-up provision:  All Participants who are eligible to make elective deferrals under the Plan and who have attained age 50 before the close of the calendar year shall be eligible to make catch-up contributions subject to the limitations of IRC Sections 414(v) and 414(v)(6)(c).  Additional deferrals under this section of the Plan may be made except during the three (3) years prior to normal retirement age while utilizing the catch-up provision provided for in Subsection 5.09.055 A. of the Plan.  Age 50 catch-up contributions will not be taken into account for purposes of determining a participant's underutilized amounts under the three year catch-up provision.  The Participant must select the catch-up which results in the higher contribution amount.  The amount shall be administered to reflect changes in accordance with the IRC Section 457(e)(15) and 415(d).

C.  Coordination with other plans.  If a Participant participates in more than one deferred compensation plan authorized under IRC Section 457, the maximum deferral under all such plans shall not exceed the applicable deferral limits described in Section 5.09.050, as adjusted by the Secretary of the Treasury (subject to modification by the catch-up limitations described in Section 5.09.055), which also shall apply to all IRC Section Governmental 457(b) Plans in which the Participant participates. If a Participant participates in a plan described in IRC Section 403 (b), 401 (k), 408 (k) or 501 C (18), amounts deferred by the Participant to such plan(s) and excluded from the Participant’s gross income in any taxable year under such plan(s) shall not reduce the limitation described in Section 5.09.050 of this Section and the catch-up limitation described in Section 5.09.055.

D.   Uniform Service Provision.  This Plan shall be administered in accordance with Section 414(u) of the IRC for employees who return to work after absences from employment due to military service.  Accordingly, notwithstanding the provisions of this section limiting the amount of compensation which may be deferred under the Plan, a Participant who is entitled to reemployment pursuant to the terms of the Uniformed Services Employment and Reemployment Act of 1994 (USERRA) may defer an additional amount under the Plan as provided in that Act for the years of his or her service in the uniformed services (as defined in USERRA).  Any such deferrals will not be subject to the annual limits on deferrals set forth in this section in the year in which deferred, but shall be subject to the limits for the year to which such deferrals relate. This subsection shall apply retroactively to December 12, 1994.