(A) Unless the employer specifically provides otherwise, the employer shall not incur any expense in the operation and administration of the plan other than for its obligations to make deferrals of compensation and to pay the deferred compensation as provided by the plan. The plan shall make reasonable charges against and from the accounts of participants for any expenses for the administration of the plan. Upon the Plan Administrator’s written instruction, the Plan Administrator (or any party acting for it or under contract to the Plan Administrator or to the employer) shall be reimbursed from the plan assets, except to the extent inconsistent with the enabling statute, for any expense (including actual fees of lawyers and legal assistants) reasonably incurred in performing services with respect to the plan. Except as otherwise provided or permitted by the plan, the reimbursement shall be effected by deducting a charge against all accounts according to an equitable method determined by the Plan Administrator.
(B) If any kind of legal action or other proceeding regarding the plan to which the employer or the Plan Administrator or the plan-trustee or any issuer or any agent (or any other person acting for or at the request of any of them) (each an “indemnified party”) may be a party is brought by a participant or beneficiary (or by a person or entity claiming through a participant or beneficiary), and the legal action is resolved in favor of the indemnified party, each indemnified party participating in or contributing to the defense of the legal action shall be entitled to be reimbursed from the participant’s account for any and all actual fees of lawyers and legal assistants and other expenses reasonably incurred in the defense of the legal action or proceeding.
(C) If the IRS determines, and the determination is not contested, or if contested, is finally upheld (or otherwise finally determined), or if a final court order (that is not appealed) decides that any payment of expenses is a violation of I.R.C. § 457(g), each person who received a payment that was determined to be a violation of I.R.C. § 457(g) shall pay full restitution into the plan to the extent of the improperly paid expense (including fair interest from the date the expense was improperly paid to the date that restitution is made). The Plan Administrator must enforce payment of this restitution.
(Ord. NIRC 97-1, passed 1-15-1997)