EXHIBIT 4.2
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Amendment Number One to The Dime Savings
Bank of Williamsburgh 401(k)
Savings Plan in RSI Retirement Trust.
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6/08/00
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AMENDMENT NUMBER ONE
TO
THE DIME SAVINGS BANK OF WILLIAMSBURGH
401(k) SAVINGS PLAN
IN RSI RETIREMENT TRUST
Pursuant to Section 11.1 of The Dime Savings Bank of Williamsburgh 401(k)
Savings Plan in RSI Retirement Trust as amended and restated effective January
1, 1997 and as further amended through April 15, 1999 ("Plan"), the Plan is
amended, as follows, effective as of July 1, 2000:
1. INTRODUCTION - Introduction of the Plan shall be amended by adding the
following paragraph directly before the last paragraph thereof:
Effective as of July 1, 2000, the Plan is amended to (i) reinstate
enrollments; (ii) reinstate Before Tax Contributions; and (iii) provide
for a three percent (3%) Employer contribution meeting the requirements
for a design-based "safe harbor" arrangement under Section 401(k)(12)
of the Code.
2. ARTICLE I - The definition of Accounts, Section 1.1 shall be amended by
adding the following sentence to the end thereof:
Effective July 1, 2000, Accounts shall also include the Safe Harbor
Nonelective Contribution Account.
3. ARTICLE I - The following new definition shall be added directly following
Section 1.6, the definition of "Affiliated Service" and all sections shall be
renumbered accordingly:
1.7 ALLOCATION COMPENSATION during any period means the
compensation taken into account in determining the allocation
of benefits and contributions among Participants and consists
of the aggregate compensation received by an Employee from the
Employer as reported to the Internal Revenue Service as wages
for such period pursuant to section 6041(a) of the Code, plus
the amount by which such Employee's compensation with respect
to such period has been reduced pursuant to a
(717) (1 of 8)
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compensation reduction agreement under the terms of any of
the following plans which may be maintained by the Employer:
(a) a qualified cash or deferred arrangement described in
section 401(k) of the Code;
(b) a salary reduction simplified employee pension plan
described in section 408(k) of the Code;
(c) a tax deferred annuity plan described in section 403(b)
of the Code;
(d) a cafeteria plan described in section 125 of the Code; or
(e) a qualified transportation fringe benefit program
described in section 132(f) of the Code.
In no event, however, shall an Employee's Allocation
Compensation for any calendar year include any compensation in
excess of one hundred seventy thousand dollars ($170,000). The
one hundred seventy thousand dollars ($170,000) limitation set
forth in the preceding sentence shall be indexed in accordance
with regulations prescribed under section 401(a)(17) of the
Code. If there are less than twelve (12) months in the Plan
Year, the one hundred seventy thousand dollars ($170,000)
limitation (as adjusted) shall be prorated by multiplying such
limitation by a fraction, the numerator of which is the number
of months in the Plan Year and the denominator of which is
twelve (12).
4. ARTICLE I - The definition of Before-Tax Contributions, Section 1.13 prior to
its renumbering hereunder, shall be amended by deleting the last sentence
thereof and by substituting the following in its place:
Effective January 1, 1997 through June 30, 2000, no Before-Tax
Contributions are permitted to be made under the Plan.
5. ARTICLE I - The definition of Compensation Reduction Agreement, Section 1.19
prior to its renumbering hereunder, shall be amended by amended by adding the
words "or fraction" directly following the words "any whole percentage" where
they appear therein.
6. ARTICLE I - The definition of Participant, Section 1.45 prior to its
renumbering hereunder, shall be amended by deleting the word "participated"
where it appears therein and by substituting the word "participates" in its
place.
7. ARTICLE I - The definition of Qualified Nonelective Contributions,
Section 1.59 prior to its renumbering hereunder, shall be amended by revising
the last sentence, in its entirety, to read as follows:
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"Safe Harbor Nonelective Contributions defined under Section 1.66 and
Special Contributions defined under Section 1.72 are Qualified
Nonelective Contributions.
8. ARTICLE I - The following new definitions shall be added directly following
the definition of Rollover Contribution Account, Section 1.63 prior to its
renumbering hereunder and the previous Section 1.64, prior to its renumbering
hereunder and all subsequent sections shall be renumbered accordingly:
1.65 SAFE HARBOR NONELECTIVE CONTRIBUTION ACCOUNT means the separate,
individual account established on behalf of a Participant to
which Safe Harbor Nonelective Contributions, if any, made on such
Participant's behalf are credited, together with all earnings and
appreciation thereon, and against which are charged any
withdrawals, loans and other distributions made from such account
and any losses, depreciation or expenses allocable to amounts
credited to such account.
1.66 SAFE HARBOR NONELECTIVE CONTRIBUTIONS means the contributions
made by the Employer pursuant to Section 3.12. Safe Harbor
Nonelective Contributions are Qualified Nonelective Contributions
as defined under Section 1.60.
9. ARTICLE II - The heading of Section 2.1 shall be revised to delete the words
"Prior to January 1, 1997."
10. ARTICLE II - Section 2.1(e) shall be revised, in its entirety, to read as
follows:
(e) Effective as of January 1, 1997 and prior to July 1, 2000, there
are no new enrollments in the Plan. Effective July 1, 2000,
Eligible Employees may make Before-Tax Contributions in
accordance with Section 3.1.
11. ARTICLE II - The first sentence of Section 2.2 shall be amended by deleting
the word "were" where it appears prior to subsection (a) therein and by
substituting the word "are" in its place.
12. ARTICLE II - The heading of Section 2.3 shall be revised to delete the words
"Prior to January 1, 1997."
13. ARTICLE II - The first sentence of Section 2.3 shall be revised to delete
the word "An" where it appears at the beginning thereof and to substitute the
words "Except as hereafter provided with respect to Plan Years in which a Safe
Harbor Nonelective Contribution is made in accordance with Section 3.12, an" in
its place.
14 ARTICLE II - The fifth sentence of Section 2.3 shall be revised to add the
words, "and/or, effective July 1, 2000, Safe Harbor Nonelective Contributions"
directly following the words "Special Contributions," where they appear therein.
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15. ARTICLE II - Section 2.3 shall be further amended by deleting the second
paragraph thereof, in its entirety, and by adding the following paragraphs in
its place:
Effective July 1, 2000, for any Plan Year in which a Safe Harbor
Nonelective Contribution is made in accordance with Section 3.12, all
Employees who meet the requirements of an Eligible Employee during such
Plan Year shall participate in the Plan.
Effective as of January 1, 1997 and prior to July 1, 2000, there are no
new enrollments in the Plan. Effective July 1, 2000, Eligible Employees
may make Before-Tax Contributions in accordance with Section 3.1.
16. ARTICLE III - The heading of Section 3.1 shall be revised to delete the
words "Prior to January 1, 1997."
17. ARTICLE III - The first sentence of Section 3.1 shall be revised to delete
the word "The" where it appears at the beginning thereof and to substitute the
words "Except for the period January 1, 1997 through June 30, 2000, the" in its
place.
18. ARTICLE III - The second sentence of Section 3.1 shall be revised, in its
entirety, to read as follows:
Subject to the limitations set forth in Sections 3.2 and 3.11, the
amount of reduction authorized by the Eligible Employee shall be whole
percentages and/or fractions thereof of Compensation and shall not be
less than one percent (1%) nor greater than twelve percent (12%).
19. ARTICLE III - The second paragraph of Section 3.1 shall be revised, in its
entirety, to read as follows:
Effective as of January 1, 1997 and prior to July 1, 2000, no
Before-Tax Contributions were permitted to be made under the Plan.
20. ARTICLE III - Section 3.2 shall be revised to add the following paragraph
directly before subsection (a) thereof:
The limitation contained in this Section 3.2 shall apply only with
respect to Plan Years in which a Safe Harbor Nonelective Contribution
under Section 3.12 has not been made.
21. ARTICLE III - Section 3.3 shall be revised to delete the first sentence
thereof.
22. ARTICLE III - Section 3.6 shall be revised to add the following paragraph
directly before the first paragraph thereof:
(717) (4 of 8)
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This Section 3.6 shall apply only years in which Bank Contributions are
made; provided, however, in any year in which a Safe Harbor Nonelective
Contribution is made under Section 3.12, this Section 3.6 shall not
apply.
23. ARTICLE III - Section 3.7 shall be revised to add the following paragraph
directly before the first paragraph thereof:
The limitation contained in this Section 3.7 shall apply only with
respect to Plan Years in which a Safe Harbor Nonelective Contribution
under Section 3.12 has not been made.
24. ARTICLE III - Section 3.9 shall be revised to delete the words "Subject to
the provisions of Section 3.1, as" and to insert the word "As" in its place.
25. ARTICLE III - The second paragraph of Section 3.9 shall be revised to add
the words, "and/or, effective July 1, 2000, Safe Harbor Nonelective
Contributions" directly following the words "Special Contributions," where they
appear therein.
26. ARTICLE III - Section 3.11(a)(i) shall be revised by amending subsection (A)
thereof, in its entirety, to read as follows:
(A) Employer Contribution, including Before-Tax Contributions, Bank
Contributions, Special Contributions and Safe Harbor Nonelective
Contributions, if any;
27. ARTICLE III - Article III shall be revised to add the following new Section
at the end thereof and the Table of Contents shall be revised accordingly:
3.12 SAFE HARBOR NONELECTIVE CONTRIBUTIONS
Effective with respect to the period beginning July 1, 2000,
in addition to other contributions, if any, the Employer may,
in its discretion, make a Safe Harbor Nonelective Contribution
in accordance with Section 401(k)(12) of the Code, for a Plan
Year, in order to meet the nondiscrimination requirements of
Code Section 401(k). For any Plan Year in which the Employer
makes a Safe Harbor Nonelective Contribution, such
contribution shall be in the amount of three percent (3%) of
each Eligible Employee's Allocation Compensation actually paid
to such person during the period that the Eligible Employee
was a Participant in the Plan in such Plan Year. Such
contribution hereunder shall be made either to this Plan, or
to The Employees Stock Ownership Plan of Dime Community
Bancshares, Inc. and Certain Affiliates. Any contributions for
the Plan Year ending December 31, 2000 shall be based on
Allocation Compensation for the period from July 1, 2000
through December 31, 2000 and only on Allocation Compensation
actually paid during the period that the Eligible Employee was
a Participant in the Plan.
(717) (5 of 8)
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Safe Harbor Nonelective Contributions made to the Plan on
behalf of each Eligible Employee hereunder for a Plan Year may
be made to the Plan in the form of cash or Shares. If such
contribution is made in cash, it shall be credited to the
Eligible Employee's Safe Harbor Nonelective Contribution
Account and shall be invested in accordance with Article VI of
the Plan. Any Safe Harbor Nonelective Contributions made in
the form of Shares shall be invested in the Share Investment
Account until such time as the Participant directs otherwise
in accordance with Article VI of the Plan.
The Safe Harbor Nonelective Contributions are intended to
enable the Plan to qualify for the alternative method of
satisfying the nondiscrimination requirements imposed under
section 401(k)(3)(a)(ii) of the Code and shall be interpreted
and administered to carry out such intent.
28. ARTICLE IV - Section 4.1(a) shall be revised to add the words ", the Net
Value of his Safe Harbor Nonelective Contribution Account" directly following
the words "the Net Value of his Pioneer Prior Matching Contribution Account"
where they appear therein.
29. ARTICLE IV - Section 4.3(b)(i) shall be revised to add the words "and/or
Safe Harbor Nonelective Contributions, if any" directly following the words "if
an Employee is not vested in any Bank Contributions" where they appear therein.
30. ARTICLE IV - Section 4.3(b)(ii) shall be revised to add the words "or vested
in any Safe Harbor Nonelective Contributions, if any" directly following the
words "if a Participant is partially vested in any Bank Contributions" where
they appear therein.
31. ARTICLE IV - Section 4.3(b)(iii) shall be revised to add the words "or Safe
Harbor Nonelective Contributions, if any" directly following the words "if a
Participant is fully vested in any Bank Contributions" where they appear
therein.
32. ARTICLE V - The first sentence of the second paragraph of Section 5.3 shall
be revised, in its entirety, to read as follows:
Upon receipt by the Trustees and Separate Agency of Before-Tax
Contributions, Bank Contributions, and, if applicable, Participant
Contributions, Rollover Contributions, Pioneer Prior Matching
Contributions, Special Contributions and Safe Harbor Nonelective
Contributions, if any, such contributions shall be applied to purchase
Units for such Employee's Account, using the value of such Units as of
the close of business on the date received.
33. ARTICLE VI - The second sentence of the first paragraph of Section 6.1 shall
be revised to add the words ", Safe Harbor Nonelective Contributions, if any"
directly after the words "Pioneer Prior Matching Contributions" where they
appear therein.
(717) (6 of 8)
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34. ARTICLE VI - Article 6.5 shall be amended, in its entirety, to read as
follows:
6.5 INVESTMENT OF BANK CONTRIBUTIONS AND SAFE HARBOR NONELECTIVE
CONTRIBUTIONS
Notwithstanding anything in this Plan to the contrary, (a) in
the event that all or a portion of the Bank Contribution, if
applicable, Pioneer Prior Matching Contribution and, if
applicable, the Safe Harbor Nonelective Contribution, is made
in the form of Shares, such Shares shall be invested in the
Share Investment Account and (b) the Employer may, in its sole
and absolute discretion by resolution of the Board of
Directors, direct that the portion of the Bank Contribution
made in the form of cash be one hundred percent (100%)
invested in the Share Investment Account applied to purchase
Shares.
35. ARTICLE VI - Section 6.6 of the Plan shall be revised, effective July 1,
2000, by adding the following sentence at the end thereof:
Each such person shall, for purposes of this section 6.6, be deemed to
be a "named fiduciary" within the meaning of section 402(a)(2) of
ERISA.
36. ARTICLE VI - Section 6.7 of the Plan shall be revised, effective as of July
1, 2000, by adding the following sentence at the end thereof:
Each such person shall, for purposes of this section 6.7, be deemed to
be a "named fiduciary" within the meaning of section 402(a)(2) of
ERISA.
37. ARTICLE VI - Section 6.8 of the Plan shall be revised, effective as of July
1, 2000, by adding the following sentence at the end thereof:
Each such person shall, for purposes of this Section 6.8, be deemed to
be a "named fiduciary" within the meaning of section 402(a)(2) of
ERISA.
38. ARTICLE VII - Section 7.2(a) shall be revised by replacing the period (".")
at the end thereof with a semi-colon (";") and by adding the following:
(vii) the Net Value of his Safe Harbor Nonelective Contribution
Account, provided the Participant has attained age fifty-nine and
one-half (59-1/2).
39. ARTICLE VIII - Section 8.2 shall be revised by adding the words ", Safe
Harbor Nonelective Contribution Account" directly following the words "Pioneer
Prior Matching Contribution Account" in each place where they appear in the
second sentence thereof.
40. ARTICLE VIII - Section 8.4(b) shall be revised by deleting the word "and" at
the end of subsection (iv) thereof and by adding the following new subsection
(v) directly following subsection (iv) and the former subsection (v) shall be
renumbered accordingly:
(717) (7 of 8)
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(v) Safe Harbor Nonelective Contribution Account; and
41. ARTICLE VIII - Section 8.6(c) shall be revised by adding the words ", Safe
Harbor Nonelective Contribution Account" directly following the words "Pioneer
Prior Matching Contribution Account" where they appear therein.
42. ARTICLE XII - Section 12.3(a) shall be revised by adding the words ", Safe
Harbor Nonelective Contributions" directly following the words "Special
Contributions" wherever they appear therein.
(717) (8 of 8)
