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Augusta Richmond GA
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BOX NUMBER: \ 5
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FACT SHEET
Why is GMEBS updatinq each member's defined benefit retirement plan and why
is it usinq the volume submitter approach to file with the IRS?
GMEBS is updating each member's plan to comply with "GUST" and to ensure that each
member's plan continues to be a qualified plan under IRS rules and regulations.
The volume submitter filing with the IRS is the most efficient and cost effective way to file
with the IRS because the IRS has decided to permit multiple employer trusts such as
GMEBS to file on a volume basis at a discounted filing fee. The only way to take
advantage of the volume submitter approach is for GMEBS to create a master plan and
adoption agreement format.
Under this new format, participating GMEBS member employers will be asked to re-
adopt their current GMEBS defined benefit retirement plan by adopting a master plan
and adoption agreement. The master plan will contain all of the GUST-required
changes. In addition to the GUST-required changes, the master plan will incorporate
provisions of your plan that are not subject to employer discretion (for example, state and
federal law requirements). The adoption agreement will contain benefit provisions which
will vary from employer to employer (for example, vesting requirements, eligibility
conditions, and benefit formulas). The drafts of the GMEBS volume submitter
documents (master plan and adoption agreement), are currently being reviewed by the
IRS to ensure their compliance with the law, in~uding the required GUST changes.
What is "GUST"?
Changes made in the federal tax law by several pieces of legislation passed over the
past several years are referred to collectively as "GUST", Specifically, the acronym
covers the following federal legislation:
G - Uruguay Round Agreements Act ("GATT")
U - Uniformed Services Employment and Reemployment Rights Act of 1994
("USERRA")
S - Small Business Job Protection Act of 1996 ("SBJPA")
T - Taxpayer Relief Act of 1997 ("TRA '97")
Why should my entity participate in the GMEBS volume submitter approach and
execute the "Certificate of Intent to Adopt"?
The volume submitter approach allows GMEBS to submit one master plan document
and adoption agreement to the IRS and to obtain expedited review and approval of
GMEBS member plans at greatly reduced cost. Submission of all 251 retirement plans
to the IRS on an individualized basis would be exceedingly time-consuming and cost
prohibitive. Furthermore, execution of the "Certificate of Intent to Adopt" allows your
entity additional time to come into compliance with GUST (12 months after IRS approval
of the GMEBS master plan and adoption agreement, or if later, December 31, 2002),
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regardless of whether you decide to complete your GUST update using the GMEBS
volume submitter documents. If you don't sign the certificate, the deadline for amending
your plan to comply with GUST is the last day of your 2001 plan year (for calendar year
plans, this deadline is December 31,2001).
What does my entity have to do to participate in the GMEBS volume submitter
proQram?
Execute the attached "Certificate of Intent to Adopt the GMEBS Master Defined Benefit
Retirement Plan for Compliance with GUST" and return to GMEBS by November 30,
2001. The document should be executed by the official who can legally execute
documents for your entity.
Is a "Certificate of Intent to Adopt" binding?
Execution of the certificate of intent does not bind the entity to adopt the GMEBS Master
Defined Benefit Retirement Plan. You will simply be certifying your intent to amend your
plan for GUST by adopting the GMEBS Master Plan.
Who do we contact if we have questions?
Please contact Angela Nixon, GMEBS Legal Counsel at (678) 686-6236 or Charleen
Barnwell, GMEBS Associate Legal Counsel at (678) 686-6262.
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PLEASE RETURN FORM TO: GMA, 201 PRYOR ST. S.W., ATLANTA GA 30303-3606
BY NOVEMBER 30, 2001
Certificate of Intent to Adopt the
Georgia Municipal Employees' Benefit System
Master Defined Benefit Plan
for Compliance with GUST
This certificate must be signed and dated on behalf of the Employer and returned to GMA at the
above address no later than NOVEMBER 30, 2001.
Employer Name:
Augusta-Richmond County
("Employer")
On behalf of the Employer, I hereby certify that the Employer now intends to timely! adopt the
Georgia Municipal Employees' Benefit System Master Defined Benefit Plan as an amendment
and restatement of the Employer's GMEBS administered defined benefit plan to comply with the
federal pension laws known as GUST2 to the extent ap' Ie.
EMPLOYER "Y:
Date: December 3. 2001 Title: M~or
[Employers do not complete next section]
On behalf of GMEBS' tax counsel, Ice Miller, I hereby certify that the Georgia
Municipal Employees' Benefit System Master Defined Benefit Plan was timely filed for a GUST
advisory letter on or before December 31, 2000.By.. ~ ~ ,~ , .
ICE MILLER _ ~ (~
A Partner
Date: November 7,2001
873389v!
I Timely Adoption. In order to "timely adopt" the Georgia Municipal Employees' Benefit System Master Defined
Benefit Plan ("Plan"), the Employer must adopt the Plan by no later than the last day of the 12th month beginning
after the date in which the IRS issues the GUST advisory letter on the Plan, or if later, by December 3 I, 2002. If
required for reliance on the advisory letter, the Employer must also file the Plan with the IRS for a determination
letter by this same date. Ice Miller will notify the Employer of the deadline date.
2 GUST. Laws including the Uruguay Round Agreements Act, the Uniformed Services Employment and
Reemployment Rights Act of 1994, the Small Business Job Protection Act of 1996, the Taxpayer Relief Act of
1997, and the Internal Revenue Service Restructuring and Reform Act of 1998.