HomeMy WebLinkAbout2012 Ordinance No. 039OKDINANCE NO . 39
SEJI.IESOF2012 -
BY AlJTHORITY
COUNCIL Bll.L NO. 38
INTRODUCED BY COUNCIL
MEMBER JEFFERSON
AN ORnlNA1'Jc:F. AMTINDING TITLE 3. CHAPTER 4, ENTITLED "CITY OF ENGLEWOOD
NONEMERGEI\CY EMPLOYEES RETIREMENT PLAN ~,m TRUST AS AMENDED AND
RESTATED EFFECTTVE DECEMRER 31, 2012 OF THE ENGLEWOOD MUNICIPAL CODE
2000 .
WHEREAS, during the most recent negotiations with the Englewood Employees Association
(EEA) regarding benefits. it was agreed that these employees would make a three percent (3%)
contribution to the Nonl:imergency Employees Retirement Plan {NERP); and
WHEREAS , this contribuhon is to :ielp offset the cost of providing pension benefits and
equalize empluyeo cunu·ibutic•ns within the NonEmergcocy Employees Retirc:ncnt Pinn (NERF);
and
WHEREAS, these amendments are not intended to change retiree bent.fits but 10 make the
necessary changes to the NERP Plan Docwnent required by this Agreement .
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO , THAT:
Section I. The City Council o:' th• City of Englewood, Colorado, hereby authorizes amending
Title 3, Chapter 4, of the Mudcipal Code 2000, to read as fellows :
Cbapter4
CITY OF 8/Gl .F.WOOD NONE~RGENCY EMPLOYEES RETIREMENT PLAN AND TilUST
AS AMENDED AND REST A TED EFFECTIVE JMJUARY I , 2GQ8 DECEMBER 31, 2012
3-4-1: Purpose,
Effective as of """"6,y-l ,-1999 Decemb~r 31 ,'9.1.:-lheCity Council of tile Cily adopted the
amended and restated Plan, as set forth herein, to continue and replace the Plan previously in effect.
The Pia.~ and Retirenent Fund are intende d to meet the requirements of Sections 40l(a) and 50l(a)
of the Internal Revenue Corle of l 9R 6 as amended. TI1e Plan. previously known as the "City of
Englewood Retirement Plan," shali-hefeu,..ief-.he u known as the "City of Englewood
Nonemergency Emp loyees Retirement Plan."
The Plan and the Retirement r'.und forming a pan hereo f, were established and shall be maintained
for the exclusive benefit of the eligible Employees of the Ci:y ond their Bcneficia:ies.
l
Nu pun of the Retirement Pund can ever revert to the City except as hcrcim1fte1 prov ided, or be used
fi,r or diverted to purpooeo other thun the cxeluoivc benefit of the Employees nf the City a11d their
Rc11cliciurics.
This amc1:dmcnt nn<l rcstatcmcn ~ oflhe Pl:m slu11i not, in :iny wny, ;iffoct lhr. ri1!h1s of fonrn!r
Emplnvec., who panicipated in said Plan und who either rC'ircd or otherwise tc1mim11cd their
cmplnyrncnl prior lo fon~-999 lli;c.cmllcLW.Ll. ·:.,,rights, ,r ,my, oi such former
Employees and of lhcir DcncliciaricH i111d the. a111<1unls of 1l·.cir l1rn1cfiLs, if any . sl1i1ll cunli11 11c tc1 he
governed by the provis io 11, ofth,, Plan as it was in effect on Dcccmhcr~-,-l-91.18 ,lQ..1!1!1, nr the
dntc , if' c:.irlicr, of their rctircn11:nt or tcnninntion of emplo)n;mt, unlesi specifically provided for
otherwise hc::rcin.
J-4-2: l)cflnltlons nnd Con~tructiun.
The r(jt.irement ;ncome plan as set forth in thio documcn : :.Irnll ho lmo,M1 w:1 thc City of Englewood
Noncmerg(!ncy Employees Retirement Pinn ml<: T:--ust and is ht-:r dmdlcr re furred to nr. tlac '·Plan:•
J-4-2-2: l.lefinitions .
Unless the context otherwise ;·cquircs, the definition~ t1ncf l,!cncra l prrwisions cl1nt:iincd :n this
Subsection govern the const111ction of'this rcstatccl Plan .
A. A<;cri,cd /Jcn,;/it n-ii;am, Lhc bl;11c(it dcl'cnniucd in occordancc with Sectiun 3-4-7 hereof.
B. ,1ccumulatad Contributions means the sum of the Mcrnl>er's contributions to this Plan,
crcditcd with interest ti,errnu al the rate of 3.5 percent per ammm lll..lJS..clj\l~.pa\lJJlgnl af !he
~weuefit co1rune11c!jlj.
C. Actuarial (01 · A.cluClrially) Equivalent mcuns c :1uality in value of the uggrcguk Hli1mmlx
expected to be received undur different fonns of pnymcnl hu~cd on inlcn.;.,l rntc nnd mortalily
assumptions as defined below unless othe1wise spccificnlly provided in the Pl11n:
1. J1 ~h:rr.st R:tt.t'. A'.ummption far Allenullive Periodic Benefits. The interest rate used :'or
purp,ses of computing alternative periorlic fonns ofhenefil, shal! be 7 5 percent
effective January I. I 986.
2. lntcru . .i 1/a;c Assumption for Single-S11rn l'ayment.s. Effective for the caleodor year
beginning on Januury I, I 986, and for each calendar year following sequentially ·
thereafter, the intcrc.sl rntc used for pur;ioscs of computing single-sum pa}1nents shall ~ ,
the immediate annuity rnle (subj eel to ~cljustmcnt as required for deferred annuities) used
by the Pension Benefit Guaranty Corporatioi: as of the January I coine,denl with or
preceding the dale as ofwhieh the amount of the allernalive fonn of benefit is heiug
detennined hereunder.
3. Mortality ·Assumption.
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a . Effective January I, 2012, the mortality asswnption for calculation shall be a unisex
rate that is fifty percent (50%) male, fifty percent (50%) percent female, taken from
the I 994 group a."llluity mort•lity tahle . For the period July l , 1999 to December 31,
2011, such mortality asswnption shall be a unisex rate that is fifty percent (50%)
male , fifty percent (50%) female, taken from the 1983 group annuity mortality table .
Prior to July I, I 999, sue~ mo rtality assumption shall be a unisex rate that is fifty
percent (50%) ma :., fifty pw:ont (;U%) female, taken from the 1971 group annuity
mortality table.
b. Solely r~, ,, ,rp;,,.~ , : SectioQ 3-4-16-2, hereof, on and after January I, 2012, the
mon•lity Ms·, •':-l;'>h :·,,, calculation shall be a unisex rate that is fifty percent (50%)
male, fifty petct r., ;O'lo ! female, ween from tbe 1994 group annuity mortality table.
In the case of distribution with annuity s:a.rting da:es on or after December 31, 2002,
the mortality table u.sed to adjust any benetit or limitation under Code Section
415{b)(2)(B), {C), or (D) as set forth in Sect:oJ 3-4-16-3 of+Jhe Plan is the table
prescribed by Rev . Ru). 2001-62 .
D . Beneficiary means the person or persons who are so designated by the Member, HHhe-lalest
u'filteR Reliee 0 •aiel.; lhe H8Rle8F or Vested Member has filed .,.ilh !he Reli181R8Bl Be&Fd W
aG&OrdlDGG WiYI Scc\im1 J-4•8· ?i to receive nny payment to which a Beneficiary may b~m~
entitled under this Plan.
E. Board or Retirement Board means the Board appointed by the City Council and charged with
the general adminislrati on of the Plan as set forth in Section 3-'.A·l l •l hereof.
F. City means the City of Englewood, State of Colorado.
G. City Council means the City Council of the City.
H. C(lde or Internal Revenue Code means the Internal Revenue Code of 1986 26 USC (1986), as
amended from time to tL-ne .
I. Compensation means the total cash remuneration paid lo 1111 Bmpleyee ~for a
c.alendar year by the City for personal services while amine Credited Service as reported on
the :ElllJ!I•) oo's ~ income tax withholding statement or statements (Fnrm W-2, or its
subsequent equivalent), including longevity pay and excluding bonuses , extra pay;
compensation time, ov~rtime, lump.sum payment!; in lieu of accrued vacation time, sick
leave, or personal leave, worker's compensation and any contribution by the City under this
Plan, or the like, but including any compensation that the~ Msmlls has elcctec lo
have deferred -under ·Scclion 457 and Section 125 of !!le Internal Revenue Code. -Effective . .-, "·•·· ·
January I , 1989. the tl[Jlount cf a Member's compensation for the pu!JJOSCS of the Plan during
any Plan y::i.'.ear shall not exceed two hundred thou.sand dollars ($200,000 .00) subJcct to cost-
of-iiving ad,uslrmruls in &cevrd:mce with Code Section 415(d).
In additior : : 1th~ applicable limitations set forth in the p)!lan, and notwithstanding any.
other prov i . ., of the pf Ian to the contrary , for p-fla.~ ~ beginning on 0 1 after January
I, 1996, the annual compensation of each "ooneligible mcntber" taken into account wider the •'"•···· ·
pf Ian shall not exceed the Omnibus Budget Reconciliutiuu Act '93 aMUal compensation
limit. The OBRA '93 annual compensation limit is $150,000, as adjusted by the
commissioner for increases in the cost ofliving in accordance with Code Section 401(a) (I 7)
(b) . .The cost of living adjustr:ient in effect for a calendar year applies to any period, not
3
cxceedin11 12 months, over which compensation is 1e·ermind (determination period)
bcginni11g in such calendar year. !fa determinali,,,1 rcriod consists of fewer than 12 month,,
lho ODRA '93 annual compensation limit will be m11lti1,lied by a fraction, the numcrutor of
which is the number of months in the determination period, and the denominator of which is
12. A ·•nuncligible member" is any mh:l,cmhcr who lirst became a ml\:1cmber in the l'J!lan
during a ~Clan ':I l'.,car heginning un or ancr Jnnuary I, 1996.
Effccl:vc .lammry l, 1989, thrnuGh Dcccmhcr 31 1 i01Jfi 1 in dclc11nining the compcminti,111 1.f u
A,b,1.embc:r for pnrpo::cs of tl:i:: limitation, the rules oi Code Scmion < I 4(q)(6), shall apply,
except in applying such nllcs, the term "fumily" ,:hall include only the spouse of the member
and any lineal descendants of the member who have not attained age 19 before the close (If
the ycnr, effective Jnnuary 1, 1989 thl'Ough Dcr.en·Lor 31, 1996, if,•• n r .. ult of the '
npplicution of such rules the adjusted annual comp .,11 .. tion limitation is exceeded rhen the
limit:ation shall be prorated om~ng the nffected individuals in proportion to eoch such
individual's compensation as determined under' this S•Jbscction 2-10-2-2(i), of the Englewood
Municipal Code prior to the application of this limitation. Por purposes of calculating
Compensation en or afierJanuary I, 2002, the li:uilation under Code Section 40 l(a)(l 7) is
increased to $200,000.00, as ndjusicd.
J. Credited Scl'vice mcuns Ilic period of Service rendered hy 1111 Employee '" a Member for
which credit is allowed.
K. Disability means a physic.ii or menial oondilion which entitles the Member lo receive a
dii:abi:ity income under the loi:g-term disability :nsuraoce contrnc: n)aintained by the City .
r... Effective Dur , n1=·(£his l'lan tttfHttt5 ™-w:.il!illldlY cffecti~J~u,uury I. 1970,nyd.1,a~ lu;sn
'Fli1>-nmencled ,md ,·c.stated ~ .. •ii.,, 11!' 11f.laH•••~• 1, 1991 from \inw 10 tinu:.
M, /£mplnyee mcnns a,1y person employed by the CitY <lli-l!li a jl<lfo;ljt\eAI; full-time. n11n-e1<,c:mnl.
non-confideuUnl-~suoet;UspryJ)loudYl PIDPIP¥:a!!:-V£bO.is,,poveredJ2Y the ovenimsa
pmyj•iPDS pf th; E•ii Labor Standards Agt hasis •• tle!ieed ift tile City Pemennel l1eliey-aae
11feeee\lf8S. For the purposes of this retirement pflan, police officers, paid firefighters, aoo
elect erl officials nnd ICifflPPO!D' smo)gyeq shall not be considerOO to be Employc-,s . lL1!.
P.£.IJi.~~a;; excludedfr..PAJhie de§nitiPP 2fEmnlQVFi ii laterdetsnnined to have been
miscln~siOed or is rgcleHified. the RNJPP @hell continue to be treeted PB not on UumJgyge for
µll.J!lno pu ·· gs;s for nsriods, nriw to \I\C,,dalc the oer,.oU:s, classifi;atiPP is rcvis.sb
Effee1i,•e Jammry I, 1987, iuek,deEl-a&-<,m~~ emploi•ees Y•ililift lheiaeaaiftg
<+f Gade Seelian 4 I 4(nj(2l e!iBBpl lh&l if sueh lease<l ••!ll"leyees ee11sti~.ile less than I , only
~ pe,ee111 ·er:1he ne1wgllli• ee111pe11seled we,J,faree •,..ilhitt4he-1neo1lffig-Of Cede Seelioe.,. · ...
414(11)(1)(G)(ii), !hen lhe leff!l "6111pleyee" will 11el i11elutle these leased emple':fees eeYeFed
l,y-e;1Jaa-Eleset'ieed-ia-Ge4o-SeolfflA 4 I 4(n)(S) uR!<l5&-etheFWise ~•a•, idea H) ll,e tORRS ef lai6
llla!r.
N. Exempt Emplo)'f.e means an Employee having one of the follow.ing title~ as defined by City
Persormel Policies aud Procedw·es: City Manager,~ lm.!i!l.x City Manager, any
Dep anment He&<!-~, Municipal Coun Judge, Ci:y Attorney, and A" sistant 'City ..
Attorney . .Effec:ive January I, 1988, "Exempt Employee" shall also inclw1e any managerial,
supervisory or confidential employee as def:ned by City Personnel Policies and Procedures,
4
O. Fi"al Average Monthly Compensation means 1/36 of a Member's total Compensation during
the thirty-six (36) coosecutive full calenrl•c mc,nths (determioed without the inclusion of any
Broak in Service) within Ibo last one hundred twenty (120) completed full calend11r months
of employment wllh the City which yield t"ie highest average Cumpeu.sulion . In the event the
Member was employed for fewer than thirty-six (36) eo:tsecutive full calenda-months . such
average monthly compensntion shall be based on his Compensation for the thirty-six (36)
successive full months during hir. laot ono hundred twenty (120) full calendar months of
employment with the City that would yield the highest average, or his full period of such
employment , if less than thirty-six (36) months . fRtnurnosrs ofcalculetins Final Average
Monthlv Gomor;nsntion. a retroactive increase in a Member's Comusmsation shall.mi
wnsidsred C9IPPEDSation nnlv for the calenW!r month for which lhc increase j3 nuid (no.tJm
~~!~ rmx,oent occurs)
' P. Jmurance Company means any insurance company or companies appointed by the City
Gounoil for Jong-len:i disability eovcrase, or as provided in Subsection 3-4-12 -3 hereof.
Q. Leave of Absence means any absence authorized by the Employer under such Empl~yer's
sta~dard personnel praotiees , ?rovidcd that all persons under simil11r circumstances mt:sl be
treated alike in the granting of such Leave of Absence, and provided further that the
Empluyet: returns or retires within the period specified in the aufoor izcd Leave of Absoncc .
R. Memter means any person included in the membership of this Plan as provided in Section
3-4 -3 hsreof. lifi"eeli"'• lllR~• I, 1987, 011sludee ,.. meml> ... ,.., laMed ••Apley•", ilhin
~-RloaAiRg Bl -.de SeolieR 114(11)(2).
S. Normal Retiremenr Age means age sixty-five (65).
T. Norma / Retirement Dar, means the first day of the :aleodar month coincident with or next
following lhe sixty-fifth (65th) bir!hday oftlie Memb er.
U. Pla11 means City ofEng!ewocd Nonemcrgonc.y Employees Retirement Plan and Tmst, as
amonded from lime to time .
V. Plan Administrator means the Retirement Boasd of the City.
W Plu" ) eur means the calendar Y""' staiti.11g January I and ending December 3 I .
X. Pre vie-us Piar. means the .!'.!!!I;, Git)' ef 611gle, aee Ratimaeal Pl111 (including~
J;;pgJeY:'OOd R.ctiremsnt Pion ond any predccesso1· plnn(s) thereto ) in force and effect for the
period prior to Januaf} J", 1999 December 31.,,.2!),l t tlie Plan l!Mal>y beiBg Bft11!A&ee 1111EI
ft!S\ale6, Any reference herein to the Previous Plan,· of a certain date or for a certain p~riod
.<h•ll be ""''"ed • reference to the Previous Plan as then in effect.
Y . Retired Member means a former Member whose er.iployment terminated by reason of
retiremeut according 10 Sei;.~~u:i:fi:J ~ and who is receiving
or is entitled to receive, er whose Beneficiary or estate 1s entitled to receive, bene5ts under
this Pinn .
z. Retirement Be"efit or Pension means any Ret.rement Benefit provided for in Section 3-4-7
hereof.
5
AA . 1/ctiramcnt Fund or Fund means the "City of Englewood Nonemergency F..mployee.•
R c1ir::mcp1 Fund," maintained b, the Rclirement Boord or in BCCOrdancc wilh the terms of
:h• Tru,t Ab'l'eemenl, amcndeu from time to time, which constitutes a pa11 of this Plan .
l.ll.l . Service mcuns a per.ion'• period or pcnud, ,,, employment o.s an :!mployee used in
de:emlining eligibility or lhe umo unl ol benofiL, as dcs~rib~-d in Section 3-4-4 hereof.
CC . 'lii,,,iee means any qualilicct ond actinr, Trustee appoinlcci by the Cily Cound as Named
Fiduciary for 1hc invcslmcnt and management of Plan assets, as pruvidctl in Sc:c,inn 3-4-12
hereof.
1)1). Vested Mcml,cr mcnns a former Mcm\,e.r whos o Credited Service has tenninated by rcnson
olhcr thnn retirement or Disability, who b93 enm2leted,1Uceat five (~)yep[§ o[Creditu<l
~ and who is cnlitlcd to rec.ti \'C, or who :t c Beneficiary or estate i~ entitled to receive,
bc,ncftts under this Plan. A Vested Memhcr shall become a Retir"'I Member upon Ute
ad, ... l commencement of benefit pRy:nuits .
3-4-2-3: Construction .
Thr. muJ;Ci.li,.~ aendcr, where appc.irinc in lhe Plan. sllilll be dccmcc! le, include lhc feminine
gender :.md words u!'ed in lh c singu!nr slml'. inchclc 1he plurnl unless the context clc:trly indicnlcs
lo the contrary . Words such ns "hcreo{,0 11hercin/1 nnd "hereunder," shnll refer to the cnlirc
1•Clan, not lo any pmticular provision or seolion. The pl!lan and trust shull each fonn u pnrt of the
uthc1 ;}y rnfcrcncc ar.d tcrm:'i sha :1 he used lhcrcin intcrclumgcnbly.
3-4-3 : Mcmhcrshij>.
'.1-4-:1-l: Employcc.s on January I, 1970,
Every pcrsnn who was an ~ of O,e City on Janu:ory I, 1970 could become a mMcmbcr
in l!ie t>l!IID on such dale by properly Oling with 1hr. Rr.tircmr.nl Roarcl, on or before such dale,
lhe form of memberthip agreement furnished for that purpose . Any such person who did not fil•
l:1e form of mcmb:rship agreement on m before ouch date moy lhcrenficr file such membership
agrcemcnl and become a Member on the first day of any subsequent month.
3-4-:1-2: Jsmployees Hired After January 1, 1970.
rnr each '!~mploycc hired Rf\cr January I, -1970, and prior to May 21 ,200 I, membership tn the
fJ.:l un shall be n condit io~ of employment and eac:, ~l;;mployec shall become a mMember on the
d11 tc of emplnymml. Such •l;mployec shall be· rcquinxl-lo complete the form of membership
ngrccment at the lime of employment or appoint1nen:, except ns fo11ows :
A. TI,c City Council may, by 01dbancc, establish optional pension or deferred cmnpcn:;alion
plans for e~empt e~ployce,;. Upon c:slabli,hmcnl of any such oplioJ1al plan(s), an
. el;;xempt e~mployee has the option •lo elect lo come wiOtin the provisions of such· plan;
provided, however, that an e~xempl e,t:;mployec may not concurrenlly be a member of more
lhan one(!) retirement plan to which the City is makingconlrib,Uons on his or her behall'
durins his or her employment by the City. In the event that any said ,Eexempt el;mployce of
the City, who is pre.qently a m,Member of the pflRn, elects to come within the provisions of
any othe: retircr:1ent plan established by the City Council and funded all or in pa."! by the
City, he shall have the option to become a ":i!es1ed ~ember of the pflan (regardle,s of
6
whether or not be has completed five (5) years of eJ;;redited •Service) or lo withdraw from
the i>flon the amount calculated under Section 3-10-2 hereof. For eac:i •~xempt e,limployee
hired on or after January I, 1988, :nembership in the money purchase plan shall be a
condition of employment.
B. An el;;mployee who becomes an el;;xcmpt ~mploycc by promotion or appointment or
otherwise, shall have ,ixty (60) days from the effective date of their oppointment in said
exernpl position during which to elect either lo remain in this i>flan or lo become a member
of an optiooal plan Pmvided the oPtional Plan must reauire the same Member Contribution
H Sestion 3-5-] rsouim1 for tlli& Plan -The election to become a member of another plan
shall be irrevocable except as provided in Section 3-4-18-2. In the event that a mb:iembcr
elects to conver. bis or her membership to the City of Englewuuu Nuuemergency Employees
Money Purchase Plan (money purchase plan), a detemrinable amount shall be transferred in
accorda.,cc with Section 3-4-18-3 .
C. City Council previously designated the lntemauonal City Management Association
Retirement Corporation Deferred Compensation Piao ("ICMA-RC Plan") which is
established un~er Se,:tion 457 of the C'.orle as an optional plan It-which the Ci:y would make
contributions on behalf of el;;xcmpt e,l;mployecs who elect this option .
0 . City Council previously established a money purchase plan for n:anagerial, supervisory or
confidential employees effective January 1, I 988, as a plan to which the City and the
employees shall make contributions on behalf of any •~xempt e,!;mployee who participat,,
in such plan. Effective May 21, 2001, such plan is renamed the City ofEnglewooc
Nonemergency Employer,, Money Purchase Plan.
E. Effective July 30, 2001 , a !BM ember of this 111!lan who is :
1. An active e~mploycc, including ,n el;;mployee cu1Tently receiving benefits under the
City's lcng-tcnn :lisability contract, or
2 . A .Y::i(ested ~ember, shall have the option to elect, in accordance with Section 3-4-18-
1, whether or not to become a member of the City oi Englewood Nonemergency
Em?loyees Money Purchase Plan ("money purchase plan").
F. A non-exempt employee hired on or ufier May 2 1, 200 I, shull immc<li•tely upon
cmploy:nen: elect 10 participzte in either this l'flan or the money purchase plan. Said election
shall be irrevocable except as provided in Section 3-4-18-2 :
3-4-3-3: '.Termination . ,, ... · ..... ,,., ..
Membershi? of any mMember shall tenninatc if and when 1,e shall ,ease lo be an e.(;mployee for
any reason, except as provided in Subscct,ou 3-4-4~3 or SubsSiStiAA~ hereof.
3-4-4 : Cmlitr.11 Service.
3-4-4-1: Credited Service.
Credited s~ervice shall be used to determine a"' 1'4ember's a Accru,,d e,aenefit and eligib:lity for
benefits under the ,:j!lan A onMcmber's o&;redited sJiervice is the elapsed time peciod from his
date of employmenl with the City, as an e,t;mployec, to his dute or terminalio~ of such
employmen~ except II!' provided below .
'.1-4-4-2 : I ,imifntinn on Cretlltcd Service.
A . No period of u,Crcditcd t11lervicc Hhnll be deemed lube incrc.11md or extended by ovo1ti1:·1c.
13. Crcditcc: sljervice shall not include nny period of time during which the mb:l,cmbcr ;son au
npproved IJ.cave of AAbsei,ce or interruption of sc1vicc •• provided in Subscct;on 3-4-4-.,
hereof.
C . Pcr:ods of cmploymcnl with the City prior lo the dnte the ~mployce hecnme a mt4einhcr
•ho: I not be included w, o!;;,edilcd oljorvice unless •uch an •Employee (I) elected lo become
" m.t!lcmbcr of U,c l'J!lan on January I, 1970 pursuant to Subsection 3-4-3-1 hereof, or (2) i,
cc,vcrcd under the provisions of Subsection 3-4-4-3 hereof.
D. Crcd ,\. 1 ~Service shall not include •v period on the b11sis oi which a retirement benefit is
payul:,?;-under any other defined hcn1.' · relin.:mcnt or pcm:ion plan lo which lhc City made
conlrib .. tions, other lh ,m hcmdil~ pny:11 ,1c~ 11ncl r.r 1hr. Pmb1:1l Sor.in\ Security Act or the
Volunteer Fif'cfiyhlcrs1 Pension Fund.
E. C1 ·cdited s~ervicc shall nut include u:,y period of time fur which the City conh iuutcs on
behalf of an 8!n1111)½1 el,imployce to the ICMA-RC Pinn !he Ci1·1 ~P!GWP<•d
~~Cl&Y.J~1w1WY.~~.n.CY Purchns$-1!L1D or any other optio:1al Eletet=red 8$"'f''""''lli"" plan in :icu of Ll,is i,J!lan, as provided in Subseclmn 3-4-3-2 hcrcc,f.
F. Credited •Service shall not be cxlcnclcd beyand a~, .. ,• or's date of 1e11ninalion for lump-
sum pnym cnt::. in lieu nf uccrucd vocntion, sick leave c •xsonnl leave.
G . Credited s,;iervice shall not include nny period of time tnot a lffl'i:!,cmbcr continues wvrking
fol' the City after commencement of the mll(.cmber's par.icipation in the deferred rnli rmncn•
option plan pursuant lo Section 3-4-7-8.
3-4 --4-3 : nrcak In Service,
A . A m,Member shall incur a break ir. service irhis sjicrvice as an t>&mpluyee lcnninates, tttitl-k,,
<k•es no'. l'BltirR to !lef'/10&-AIHIIHl,l:mple) "" '111,ia 1,, •• 1 .8 (12) AIERIAS of l!le dale 911811
se1¥iee-;&FH1itiated,
The Reti rement Board shnll have the power to dctcnninc when a brc.,k in service shall hnve
occurred, und such t.lctcnnin nliun shui1 bemndc in a nondiscnminntory manner .
The followine shall not be considered a break in service:
A. }.. A temporary lay-off because of an illness or for purposes of eco :10:ny, suspension , or
dismissal, follow~.d by rleath, or rt:in s1utemenl, :eemployment or reappoin '.menl
within on~ (I) year . · ·
B. "' A formal ll.eavc of et,bsence, duly approved by ~,e City Mana~er for a specilic
period, followed by death or by reinstatement, reemployme0 t or reappointment
within thi11y (3c J days after termination of the liicavc of •~bser.cc.
8
6T Ae) BIHJde~ ee er &11) 11:118K11r •• fl:e is an t.t I~ e, ef abu1111e ert aeael:tftt ef 11uering te•e
the raililBIJ sep,jee eflhe Ynile& S1a1e5 EiBel11ding &Bl iee ie !he 1Jei1ee Slales HerehilRI
Uariae ie lime efu'llf) shall, ie Iha a·as!fflee efFe&SOAa'elej11Sliliea1iee fer addilieeal
ti•:•), FOftlffl le the Sa, iee eflhe-Gity-withineinol) E90) da1•• after Iha lime •loan a
diseharge from s11eh mili1e,y sap iee mas Hfel e"'ailahle le s11ah emialeyee. le llte •'"eel
Iha! a 111amher er emple)•ee de•• A81 re111m te !he SeRiee ef lhe Gi•y • ·illlie 1he time
speoilled ahe"e, e11d, lea •• efohseee, •h•l' he oa•nida,ed a b,eak ie ""'""""
?le1•,·iU111asdiAg &A) ~re. isiea efllie plan 1e !he eeAIFa~, ••111Fi~111iaes, eenolli. w1~
sep•ie• •••~it .,.;11, respeel le ~11al1~ed elilllf)' Sllf' iee will be preYidea is aseerdeeee
~
~ 'The period during any ij,eave of QAbscnce or inlermption of •Jierv1ce shall not however,
be included in el:;reditct. nljervice.
Effective as of AU!,'1.151 ~, 1993, a !!,,eave of 9Absence pursuant to the F1UnHy and
Medical Leave Act : I 993, shall not be considered a break in ser\'icc; however, the
ej;ruployee will not receive any s)iervicc credit during such an absence .
Mar :ati•~· I, 19S+, if &R)' feABer memher E· •s1ed er aee .. eslee) re111ms le ••Riae as un
employee u illiiB lino (~) )'Mrs •lief his dale af lermiealien, er if a fe,mer "•si•d 111emee1
Fl!ltlifl'lS le &ep•iee as ae e111plei·ee alle, &HII Ii e (S) )'Olll'S b11t •"ilhe11t reeei,.leg ani siegle
&IIDI pa)'IIIOBI he,e1111der, !hen applieahle pile, eroliil~ ••• iee shall be reslena, 011,eP" iee
•Yoh prier erediled oep;ee seeU he reffflfllll!lllly lest Sll9jeet le \l,e l\Hteer preYieioRS eilhis
S11eseeliae 3 4 4 3, liani· s11ell rehired me111hr, .,.he had relllftlee 10 seP iee as ae 1!1111'18)'88
·, illiin li•,o ES) 1 oar,; aRenho ~ale eilermiealie&, had ,eeeiv&d -a~• &WIii pa)'IR1&1 ia liaw
of ,eiiremeet beee!i1s , EH aeruarial ,etl11elien shall be metle iB liis relireeeel eeee6ts llft&!F
Sll8soetion 3 4 1, I hereef 11eless Iha ,epei s lhe Food ,,..ithie lwe!!I)• fa11r (34) BIBOIIRI, , 11h
illlere,1 al !he "''" detel'fflieed 1>11der-Sueseelioc l 4 ' 2G~ AIFB8f (i 1leFB&I r•t• "'"""'fllien
fer siP.gla &IIRI pay111B111s) !fem Ille Elate !he lll81!18er reeei1 etl Iha pB)'!l'leel le !he dale ef
~
IL After Ps<c,mber 3 I 2012 if a former Member rctua» to service as...a Msmbsr the ~ol1o»!iAi
rules shall annlv to determine whether the t'lan shall include r'rru;tore0
) or shall not inclmlst
~l:l tbc; Member's Cr~rlWid Ssoics earned -before the absenceor,intaw~ ·
~jgr Credited Service"} for numoscs of detmninins tbs Mcmbcr·s Crs;dit;d
~ftcr h;s return
L f,or.pumoses of tbs five vcars ofCrWitccl ScCYice cseuired 10 bccqme a Vested Member
the Piao will restore the Msmb;r's-orior Credited Service oolv jfthc Member renavs tg
the Piao tbs nayment the Member rcceiv;d. (if ~ccumu1°t;d Contributions Such
tCDAYJ11en\ must eoualthe fuH AGcumulated Contribution amount rruix~
Member from ths Phm ulus interest at the rate of 3 5% oa thut emnunLfrom the date of
receipt to the dot; of rsoovmcnt FulJ renaymep1..Im1§\ hs made withinl2 months of the
Member's retWAJ.:~ §ED'icc as a Mcmt;r apdmµst be made bv Pavroll deducripp or bv
rolloxc, fipm an ltA.JJualificd rntircmcnt Piao or elicihle &PYSIPmental 457fbl Rian
accsRJable to ►OR flgard.,,,m "ludins aftcr:tax contribution, If reoowsm is made bv
w:r.oll deduclion the Member must make a 2n;;time irreYPGabis election upon return to
~rylcc as n Msmbsr nnd the clecti 0 n must authorize oayroll deduction oiJhe r;auired
!!WllmL.9Yer a uw ·lfic neciQd Coot ~1,cnd bevond 12 mont'as of the M~'~
to mvicc •• • Mgnhcrl Although dc:sign~\cdl!li.,Msmh~<;Qll.lQbJUinru,.lh..£.P~:awl
deduction~; uicksd un bx Lim Citx as dmcribed in ~~wtc Sectisw 1J4lh)C2le lfJc:;s
than the fuJI rcpaymentismafle llY naYJJlL' dcducljon du• 10 \ennipntion Pflbe Mem>J;Lli
-~tnru!lno within be 12 mor,tll.tQ2~J>Gnwl the nmnY!l'·
u:w1i<J wj'! he -~uili.d.
l. For al) mwnurng:;e5 the Plan will restore C':r<1ltils.:.11J,i:~r..n..M.llllllli:J'.Jli.'<!!llli1i1:.1U
JJiu~.llllil.[;
& HJ.hs ~1ber mturu5 •g '-etvics P3 a Mcmhe-within five yr.nr!; ofthw di!lc lht
M.orohsc's omnlq~ lb~ Cjty Lenninated. ti\iPbn will restore the M~mher~~
1~llll ~ryc\iJd Setvjcc polyj.fJl1,.c Mcmbcrrco-an to tbs r··nn the PftWGllt lbs
M..c.rohcr rccdv1;<lfilauv) sl( Or.o;uIDuJlilel CUW!ilwtii?ns· REPli°w>culJndst Jlw UFJdl!
~.csl!Ill.i!lllJ.QJlru!n1~ ;iilcs as described iu 1~tilllb..L
l.i. ~•mhcr returns \9,,Senrlc~JJ!Mruu1wr non the lillh UJlll1l!Prs11rY or the .d!.llll
tbs Mephcr',u;mnhn@enl.Wi01Jb\:.CID:..1liill!illru.LfUlll"J.imi!lilli.o.o.sl~
Clmulill!.LSi!>'l!, • .lii!..M~.dllitd..SJci<.IUllllill.JJ.~lk'i..Q
~.Qm\!.~L.9.D tbc terminntjon date11».\1 Jbt:.Mcmher djd not receive o payment
~111llllnts:d..CruuriJ11•.!i.'!•!~..frt111.1J~!l.ClilJl.
Members of lhc J>l!lun us of Jonunry I. t 987, who were previoll'Jly covered hy lhe rl'lun hul,
due ton prior tcnniniltinn .lf cmploy1ncnl, received such a singlc•sum pnyincnt, and were
tlrnn rcempluyetl by the City rcganll""s of ~,c ti111c thal cxµircd lictwcen their tcnninali on
date aad reconployment date, shall hnve umil July I, 1989, in oi.ler lo elect to repay such
single-sum amoun t aad thereby avoid such aclunrial reduc'.ion. fhe nmounl to bt rc-puid shall
be caku!uied as set f111h and must be repaid by Ju ly I, 1989 .
Any forme.r nouve.c;.te.cf ~inplnyf".r: whn rr.rums In service sts an eJ;mployce mort: than five (5 )
y~ars after his date of ltnnination and who is a fl>Jl1cm~er of !he pJ!lan as uf January I, I 987 ,
shn'I hnve until September 30, 1987 to make written application to the Retirement flonrd to
have his prior e&;rcditcd •Service, if any, restored . The Retirement Bonrd shall review such
upplicaliol'. and shall dctcmiinc on a 11011discrimi11alot)' basis, whcd,cr such prim e~1edi1cd
s§,crvice shall be restored , and shall inform the .,!)!!ember of its detcm,inalion by December
31, 198"1 .
Any Mr:mbcr of the !'Ian who was an Employer. on Janunl)' I, 1970 and who did not elect to
bcc:,me a ~.fombcr o:· the Plan on Jauuary I, 1970 pursunnl lo Subsection 2-10 -3-1 hereof
··wil l·. 2s of Janu.i.ry 1, 1981 , re-.r.r.ivn r.rr.ciit f,1r ;111 ,,;crvice ruin:-In the oi:ite he acl11 ;1Jly l,ci.:a111c
:, Member oflh, Plan. Such a Member m•y elect in writing, prior to July I, t 988, lo pay n
s:ng)r sum Amount dctcnuir.cc.J on Lhe bre;is of the ln,01.:nt of oAccumuluted o~ontributio110
that said Memuor would have accwnulated in the Plan as of July I, 1988 had he clcclcd to
become a Member of the Pinn on Janual)' 1, 1970 and made the required contributions each
.year on the basis of compensation he received eac:i year . If the Member elects nol-lo pay the
single sum amount, his fjietirement allcnelit dctermmed under Subsection 3-4-7-1 hereof
s:,atrbe reduced by the aAc~arial e);lqu ,valeut of :he single sum payment due as of July I,
1988.
3 -4-4-4: Effect of Other Plans.
10
Credited Service shall not include any period on the basis of which a Retirement Benefit is
payable uncier any other defined benefit retirement or pension plan to which the City made
contributions , other than benefits payable under the Federal Social Security Act or the Volunteer
Firefighters ' Pension Fund. Credited Service shall not include any period of time for which the
City contributes on behalf of an Exc:mpt Employee to the JCMA-RC Plan or any other optional
deferred compensation plan in lieu of this Plan, as provided in Subsection 3-4-3-2 hereof.
3-4-4-5 : Miscellaneous .
No Period of Credited Service shall be deemed to be increased by overtime. A vear of Credited
Servir.e sbail be given for each three hundred sixty five (365) day period, beginning with the first
day of employment, whicb elapses while the ef;;mplovPr. is entitled to Service credit under the
above provisions of Suoseclion 3-4-4 hereof.
'.l-4-4·6· C;editcd §cryisc for Military Service.
A Member who t"tYrn" Lo emnlovment with the Ci\x from~eliJied military sec he dw:,inaJM
~within wh 1ch rccm2IID1Dent riKhts ure wuuromced bv hu~ "t;jll r9WYs.Cn Jtr,d Service
wi:s:m;i;t )llthe Member's period ofgualificd,mili)ary §lll'Y.i&• Cwi\bin,lhe m;anjng o(§ecliwl
41 AfulO l of the Code) in occordnncc with Section.1.M(u) of the Code and a22Jicablc requtatjons.
ilPAAI dS§crib;d m subsections A and B h;Jow,
~ ~redited Service Necessary to Be@mu.Yesied Member A MembeL\Jlualified PYlitarv
§CMr.e rrnmts toward the five (5) vears ofCreditsd Sqyjce reouircd tQ become a v ~ ~-
a. Credited S;ryic; for All Pumos;s Other Thao Yeted Memher Ret..1irement§ F2r numPW
QY1.q__¢an dessrihsd in subsection CA} ahove a Membfigualificd military service oounts
toward Ccedited Seaice onlY to thwtent the Mcmber;Lccts,,to makecpntribntioos to tht
Planiatall or P@rtM the oeciod ofouaU6ed militao: s•ryice%as described ip Subsection
:l-4-5-4,
3•4-5: Contrlbutiuus.
3-4-5-1 : Member Contributions.
Effeoiive-JonUIU')'"~ff'!'iifOa er poRnille~ '" raatri\nlle le lee Pl•R.
~~!11lm I J 9~1!.~~bsc ,P 2012 no Mem;,e, ;, regµiw).or pepnjtted,10
r.oo1cil1!11r 12 1hr.l!lan .
1.!tTective,Dcc~.Jl.~atl'lll.l!ll:.l9.e.J!ljln,bY means of payroll
~lbc;s; pcI£SJ113%} 0( the Msm\!«'1 Cornocnsa,jgQfor ocdods dutinulli<ili.!M
Member earn ~ i,:;reruW .limi,e Although de,jgna1ecj as M,cmber cou1ciilY\iClllSJilll.ll
r;onliib~J be pjcked up and,naid by 1he,Ql:y_as proyjd;;l in Seetjen 414/h)/2} ?I' the
lrullP)tl Rcxe~IWWl~'W.W~m.iw: federal -· .
income tax purpgses, D.;Mernll;c'.s.coutributionpiekei:! YR bx lhE CHY shall be added.Ju.Ir&
M;mher's Ascumulated Contributionsjo the '-ams maooei as ifnaid dir~tly to the Pfanb ·'.l;l;
Member No Member shall be r;ouire,d,.oJ ~nnittcd to make cqnttibuUons 1B this Plan for tt
neriQd,during which u,s Msmb;rjs,,ng1~jru?,,Creditc¢ Service utisnot receiving
~1Al~ s durinv Disahi litxl
li
~ 4 5-2: City Contrlhutlon,.
·1·:1e Cit)' will, frrnn ti1nc to lime a11d at least annually, make contributions Lo ti,~ Trum Fund to
lhc cx te 11t ncccssnry to finuni;c lb: b~1u.:fils provided by the Pinn on r, ~11und aetunrial busi)i. 'rhc
City expec!.S to continue ~uch conlrlbutions to the Plan, bc.t P.ssumes 1rn rcsprn1sillility h 1 dP so
and rc~crvcs tht right to i;uspcnd or lo redu ce comributions El any time.
J-4-5-3: Appllcalion nfFurfcil.urcs.
Any o·i,011nl 'ni fcil.c<I he::11use of the termination of employment of a Member prior lo his havin1-:
:icqnii·cd a fully vested right to Retirement Benefits, hccnusc of the death of nny ffibiembcr, or
fo r nny other rea son, :;lrnll not be applied tu increase the benefits which would othcNlise be
payable lo any other Me,~bcr. The amounts so furfeitec ohnll be applied as •oon ar. pos,ible lo
rcclucc. Cit: (:l111t :·iliuliu11s 1cqui rcd to be m:1dc by the City.
~2;:_4.· c ·cntribntions fpr rsrimls of.Q.u~JlarY Servis~,
'i11j$ ~e.c•i~t!lfil.lll. a Jilcmb!it,,l!'.hl!J'.lllU::i>~i.lh llw c,1yJn1m 11au:ilkd
lllililn~...lill.!Yi.1;e duriluUll,~~_:tthicb regnmlov1u<aW~1JI.:.Ull!WY..!.nw,...I!lll
M c,.,bcr may ~le<;.\ 10 con1rjbu1c JP the 1'!.ttn .. uluu:..11»~..P,:iwb.llliPn• 1hc Member wpyld
biJv~ made 10 th,~.PJ~u,to,,Suction J:fl -5· l ii.ih.t;.Mcmber had remained continuouslv
~ILbY.Jhl'~µ,:~~od of llm Mc.1llbrwwililisil military •sryicc The
y;p.2_un1 ~ulions theMcmhcr mux make occordins to this Scc\i.Qll :ibnll he de1s1minr4 on
1hc bn:;is of 1·1e Mcnbcr's Cmnncnsntir,g .~ 'mmcdiolelY before IJ1C,,iju@lified mili~
6S[Yicy_anti tl1c~!,_~!;_q.JfU.1.LU.1.s;J2hm durinc thc.Mcin·1 • .;r'~ ,~~ri~sJ..slf .. uyfillfi~•nrv ~eryjcc..,
~ M smbcrrno\' m"ke ~W!l.i!,tns duti!11! i' n;riod )egir1l!Yl&. QIL the MemL·i;LI
!!ll?Jllll!2vm,l1.,lljlh the Cj1y and lqi1i~!lb.o,J;\.t p( (jye f:i 1 V,®ts,,\!r 1hrs;e .. C.1Ui.DWW
b.1"ember'Ancriod otgunlificd m:Hlru:¥ seryiceh ·.r:c).hp ~xlcUI the MRmbcr makes S2ll~
~!?Y . .!l!i~on the Men;bcr will cs~~i ~~.nic, Mslc;scribc;d n' .... ~
3.A--A.;6.{~~~riod uf ouulified militnrv se~·J.t:~J1J. whicl: ll1c :;ontributions rclaLs,
3-4-6: Rctircmcnl Dntcs,
Ail f'er-H1ill 't'!~ime Employees of lhc O ty shuil become one hundred percent ( 100%) vestcc
upcm aliainr1cnt of their Normal R::tircmcl'l Age ;ind may ret ire al any t:me thtreaftcr.
The :,ffcctivc d111 e ·o f 1ctircn1cnt under lhc provisions above sha ll he the first day .of ti1c first
nont:, folio wing thr. 1nonlh in whit:h su ch Er,ployce c1lhcr:
A. i\<:luuily retir"" fr om employment with the City, or
b . Has attamed .Non:ial.Retircmcnt Age and
I. Is a parHim•: Vested Mcn:ber employee of the City, nr
2 . Has cease<: to ea, ,1 Credited Service due to the app:ication of S.:ction 3-4-4-4 .
3-4 .. 6-2 : E.orly Retirement.
12
A. Regular J:.arly Retirement: A Member or Vested Member who bas Hit.lined the age of fifiy-
five (55) years and has completed at least five (S) years of Credited Service may elect to
retire w:der Regular Early Retirement and have benefit payments commr:nce as of the first
day of auy calendar month, which shall not be )egg thlU1 thirty (30) nor more than ninety (90)
days aOer the fihng of wr:tten notification with the Retirement Board.
B. Special Early Ratiremtnt : A Memher ~hall he eligible for Special Early Retirement as of the
first day of any calendar month if his employment tenninates after he has attained the age of
fifty-five (5S) and the sum of his age plus hi , <:,edited Service at tcnnination equals eighty-
eight (88) or more .
Sue> a Member may elect Spccinl Early Retirement upon the filing of written notification
with the Retirement Board not less than thirty (30) nor more than ninety (90) oays prior to
the date benefit payments are to commence. ·
3-4-6-3: Delayed Retirement.
Every Member upon reaching his sixty-fifth (65th) birthday shall be fully vested in the benefits
earned prior to such date and sh•l1 "" eligible to retire under the Plan . However, a:iy Member
eligible for nonnal retirement lilllY elect to delay hi , retirement date as pe:mitted by the City
Personnel Policies and Procedures. His delayed retirement date shall be the first day oi the
mo:ith, coincident with or next following the date of his actual retirement As a condition
precedent to continuance in e:nployment beyond the Nonnal Retirement Date, the Member shall
file with the Retirement Board the written designation of a Beneficiary, whether or not the
Membe; elects E.11 optional benefll in accordance will, Section 3-4-8 hereof.
3-4-6-4 : Disablllty Retirement.
Any Member who is disabled pursuant to Subsection 3-4-2-2(.K) hereof shall qualify for
Disability retirement as provided h~rem . Payment of a Disability Retirement Benefit shall
commence on the first d•y of the 0 nonth next following his Normal Retirement Date. +lte-l&st
l'a)'Rlen! shall 'ee 11111le as efthe fa JI de) efll!e meall! ie "'hieli Ille daall! efthe Relired He.s'eer
eee•rs er liis Disa'eili'i' eo.ases, wliiell•"er !iFSI eeellfs. lfElial!bilil) ••-'\ef.!he
MemileFS ~leFR!al Re1.;a111911t Dato a.e~ he dees nel retwn le Rill time em.)e)'ff!DRI ..,ill! tho C:i.,<,
his Disalnlit) Reliremenl Bene!it shal ~ 'ee eeatie••d in 11!0 SllfflB maHRBf is if his Disa'eilit:• had
~~ Pavmcnt oCLhc Disabilitv BP1ircm9)t Benefit ahntl be in the+12PPAI fonn describqi in
Section J:-4-7-S unlsssJhe Member sleets ao ootional form 2ursuant ·o Section 3➔-8 ·
If the Retired Member's Disability ceases prior to bis Normal Retirement l)ate and he is not ·
reemployed by the Ci,y, and ,fbe had met the requirements for an early or deferred vested
Retirement Benefit r,n the date of his :cttrement from Disability. be shall be entitled to recd ve,
r.r.,nmenr.inB on the first day of the montb next followins his Nonna) Retirement Date, a
Retirement Benefit equal to the early ar deferred vested Retirement Benefit to which he would
i1ave been cntitlcd,.as .ofthc date of his disablewenl. ~-,ch Retirement Ba,efit to be calculated .
shall consider the C:ed itcd Service be could have r-.-.eived during the period of his Disability . If
thr 'fombe: requests 1e commencement of his early or deferred vested Retirement Benefit as of
the urn day of the month next followcng bis fifty fifth (5Stl:) birthday. or as of the first day of
any subse,,'Jent mar.th which precedes his Nor:nat Retirement Date. ~js Retirement Benefit sball
commenc~ as of the beginning of the :nonth so requested, b·Jt the amount thereof <hal l be ·
13
rn<lucccl in accordance with Subsection 3-4-7-2 hereof based on the number of years by which the
starting dale of the Relircmenl Benefit payments precede the Member's Normal Rctiremcnl Dale .
If Disabil ity cease.~ before a ~Member allains his Normal Retirement Date and the
Member is re.c111ploye,l by the C:ily, 1hr. Retirement flcncfit 11aynblc upon his suhscc1ucnl
rclircmcnl shull be clcLcrm:ncd in accordnncc with the provisions of St,~scction 3-4-7-1 hcrc.-.of
including Crudiktl Service for ihc pcrbd lhnl Im w:u: dbaMcd .
Nmwithstan<lini; u11y olhur pruvi8 :u11 of lhis Sc1,;liun 1 110 Member shall qualify fo1 a Di~nhility
Rcliremcnl BencOl if the Board dotcrmines that his Disability results from an addiction to
narcntics nr hullccinogcnic drugs, an injury suffered while engaged in a felonious or criminal acl
or ,111crp1 ·sc, or service in the Anne<! Forces of the United States which cnlillcs lhc Member to a
veteran's .lisability pension.
Disabi;;r I under the Plan shall beconsidr,rd total anrl pennane,t if1l is ni,tcrmim,d hy !he HnHrrl
th at 1.h ..... :'-◄tmber is eligible and receiving disobilily benefits frorn :he lnng-tcrm disability
i11r.urancc conlrnct mninlaincd hy tJ,c City .
Disability shnll be considered lo have ended if, prior to his Normal Rclircmclll Date , the Member
1i;; no longer chgihlc for hem!fits from the 1ong-tcm1 c.lhwhility inr.umnc.:c contract mainlained by
1hcCi1y.
3-4-<>-S: nettuircd 1,;.,trihution of ncliremcnt llenefits.
Notwithstei:dins, m:y other provision of lilis Pinn. di~tl'ihulion or benefits under 1ltii: Plun shall
co:umcnce not Joler tlmn April I of the c.,lcnclnr ycnr followbg the later of thu cnlcnCnr year in
which Lile Mcmhur ..illui11~ ugc: :i1.;Yc1 1ty ;u,d Otl\,:-lwlf(?O½) rn the cnkndur ycm i :1 wh :ch the
Member retires. Distrib·.nions sl111II he made in 11cc ~1rclnncc wah the rcquircmcnta of rcg.iltttions
Jt1dcr Cofo Section 40 l(a)(~J a, applicable 10 govcrnmon1al pln11,, mcluding lhc minimum
incident.al death ')enefit requirements.
3.4. 7: ltetirement Benefits.
3-4-7-1: Normal or Dolnyccl Retirement.
U1>un retircincnl at or after his Nom1al Retircmcm ~)ate, each Retired Member shall receivr: u
monlhly Rctircmenl Benefit equ : to one and one ha!f percc111 (t ½%) of the Mc1nbcrs Final
Average Monthly Compensation multiphcct by Lim Iola! nurn'1cr of ycur, (including fractional
yr.,rs) oflhe Member's Credited Serv ice.
3-4-7~2: Early Retirem •~nt.
A. Regular Eo•,y Retirement. A Me!'lber or V csled M cmba . eligible for Rci,•tliar Early
Retiremer.t enc retiring prior to his Hl::lonnal Retiremtnt Date, shall bc entitled tu a reduces
Retirement l:lenefil which shall.be his Accrued -Benefit on his Regular Early Rctircmc~1t .date,
reduced by one fourth of one percenl (.25%) for each month by which the payment
commences prior lo the first of the month following his Normal Rcli:cment Dale.
B . Special Early Retirement. A Member who mee.1, the requiremenL< fnr ~peciRI Early
Retirement shall receive a monthly am, unt computed as for a Nor.nal Retirement Benefit
considering his Credited Service to the date of his actual Retirement , pa:•abie without
reduction for Mrly cnmmencement.
3-4-i-3: Dlsablliry Retirement.
A Member who meets the requirements :·1r a iJisabihty Retirement Benefit as a result of
receiving payments from the City's long-Lenn disability in surance contract shall receive a
monthly amoi:nt commencing on the tirst day of the month next following his Normal Retirement
Dale and com?ulcd as for a norrr.nl retirement under Subsection 3-4-7-1 he reof, considering his
Final Average Monthly Compensation at the date of his reti.n:mcnl from Disability and Credited
Service for the penod he received long-ter.n disability benefits from U,e City's long•lerm
disability insurance car.tract.
3-4-7-4: Dclnyed Retirement .
A Member retiring subsequent to his :-lormal Retirc:went Date shall receive the monthly
iRetirement 1,Jlenetit computed under Subsection 3.4.7;1 hereof, considering his/her +final
iA verage mll'lonthly 8';ompensation at the date of bis/her actual retirement and the e!;;redited
s!lervic , be/she accumulated lo the date ofht.s/her actual retirement.
3-4• 7-S: Normal Form of Payment.
Unless optional benefits have been elected or are prescribed pursuant to Se stion 3-4-8 hereof, the
basic monthly ,E,e:iroment l>tlenefit, computed as set forth above, shall br a ten (I 0) year certain
and life benefit. Such benefit shall be in equal monthly payments oomme .,cing on the fust day of
the month ne>t following the retirement date, end continuing at monthl i intervals for a period of
one hundred nineteen (119) additional mo~ths and :br the •Retired ..-,Jliember's lifetime
thereafter. The last benefit payment shall be made on tbe first day of the month of the ,E,etired
1'\11::!.emhcr's death, unless payments have been made for fewer than one hundred twenty (120)
months, in which event payments shall be continued to the narocd l!;acneficiary, ceasing when an
aggregate of one hundred twenty (120) monthly payments have been made ,o the ,E,etired
m,Member and his/her ejlcneficiary. If the f!?,e:ired ~ember is married at the time benefits ar~
to commence, the spousal consent rcq\ltrements of Subsection 3-4-8-2 hereof must be met before
p•yments wider this Section commence .
In Ll,c event that no 1,:§encficia.·y is living nt the de.1th of such rll,etired ~ember, the &.QCluarial..
e~uivalcnt value of the monthly installments for the balance of the tenn certain will be
computed and paid in one swn to the estate of the f'Rctired fflMember. If at the death of :he las t ·
sul'\•iving l!Dcneficiary following the deab of the• Retired mMembcr, monthly installments have
· not yet been paid for tl:e term certain, th, ·ae,ctuarial e &<1uivalenl value of the installments fo ,
the bal1U1cc of the term certain will be computed ar.d pnid in one sum to the estate of the last
surviving l!Jlcnefi ciary.
/\s prnvirlerl hy Subsection 3-4-: 6-2 hereof, •f.etircrncnt bJienefits ma y be suspended fo r a
.,B,etircd --Member during a period of employment subsequent to. his/her a~tual retirement .date ...
dw-ing which he/she is rehired and receiving compensation as nn employee r-f the City. Monthly
payments ;hall commence and be determined pursuant to such Subsection 3 1-16-2 hereof.
3-4-7-6 : Acr.rn•d Credit< and Vested Benefits Uuder the Previous Plan Preserved.
l '.
The restatement of the 9frovious i>J!lan by this l'flnn shall not operate to exclude, diminish, litnit
or restrict the payment or cor.Linuation of payment of benefits accrued as of Decemb:r ~
,1.0._:>AJ.t Tl'.c amount of such i,;erevious 11.Clnn benefits, if any , in the course of payment by the
(J:rustt·c under said f'l!revious pf Ian . to any person on December ~gs .11l..6Qll, shall he
ccmtinu cd by lhc iirusll'-C 111ulcr tht": 1r11st nurcement fnrmir,g II part of this iiJ.!lan, in the mime
r:iunncr , undimini~hcd, presc1vcd, and fully vested under lhis µ J!lnr ..
The c.ligihility for, .inc.I m11ou11l or, nny benefit of 11:1y kind, puyablc cununc11cing after Dcccmhcr
,;+,l-98(; ~ unclor this pflnn 10 or for ,my person who was• •~c111bc1 of the vl!1cviuus
r-l!lan nnd who became u m.11!,cmbcr of th,s restated ~!!Ian us of Jallll8~ Dc.;emheill
:W.l~, shall be dctcnnincd under fac provisions of d1is f'l!lan.
3-4-7-7: lncren•ecl lleuefits for Rr.tirctl Mcmbcn and Beocficinrics.
lllkctivc July I, 1993, all mh{cmbcrs 1111d bl!cnoficinrico whooe paymer.t• commenced before
.January J, 1993, shall receive u•fivc percent (5%) increase in their pcn :.i:>n paymcntli subject to
future adjustment as dctcnnincil by the Board.
EffectiveJ,i.iuary 1, 1996, all rn,Membcrs and b)lcnc:ociarics whcisc payment s commenced :,cfore
July I, 1995, shall receive a three percent (3¾) increase in their pension paymcnls subject to
future ;1djustmc11l .a s ,lctcnninc:41 hy the Board .
Effcct ivcJnnunry 1, 2000, nil fflhicmhcrs and b};lcnc!iciaric:: whor.c pay:11ents conuncnccd before
Jm~ui1ry 1, 1999, :.hull 1cccivc r. three percent (3%) increase in lhcir pension paymcr.ts subject lo
fulurt:. c1 cljuslment ns dctcrniincd by Lhe Hoard .
Effective January I, 2001, all 11ittl,embcra and b]Jcncficiaric.s whose payments commenced before
January I, 2000, shall receive II three percent (3%) incrcnsc in their pension payments subject Lu
future "djustmenl es d<'\t cnnincrl hy the Onord .
3-4-7-8 : Dcfcned Retirement Option Pinn (llltOI').
A. i:,1Jcctive Date. Notwithstanding Subsection 3-4-2-2(L), hereof, lhc ~rovisions contained in
this Subsection 3-4-7-8, hereof shall be effocttve on Octubcr I, I 99Y.
H '/'il!P.. Tile program prov:ded in this Subsection 3-4-7-8, hereof, may be referred to as the
"DROP."
C . Applu:abilily. TI1c provisions of this Section are applicable with rcs?cct to those otherwise
eligible Rlbimnbers of the Plan w:,ose clcclion lo participate it , 1he Dl(Ot> occurs on or alte:
the clfoctivc date eomnincd in lhis 8ubsection 3-1\-7-S(A), herrof. An "eligible m1i1ember" is
any mMembcr who has attained the n,ijormal FB,otircJ1c111 EIJ:!ale in accordunce with
Suhscctinn 3-4-2-2(T), hereof or lhe sfu>ccia; ~farly •!l.ctircmcnt dJ;!ntc 111 accordance with
%l,scctior. 3-4-6-2D. A "partimpaling DROP 11V4c1nher" is any cligihlc mt,iemher who has
elected 1,.pnrt1cipatc in the DROP as provided by this Subsection 3-4,7-8, hC!J'eof.
D. Puepose. The purpose of the DROP is to allow an eligible fflbicmbcr lo elect, in lieu oi
immediate tcnnination of employment and receipt of ,,B,etiremcnt 11,;lenefit or 9,l!e~s :on, to
continue employment for a specified period of time and to have tl1e eEgible ml;dember's
,!l,elirement l>l;1enefit or i,,l!ension paid into lhe DROP account until the cno of such specified
~cried ,f the particip•ting DROP fflhiorr.hr.r's participa:ion, at which time employment is to
l6
cease . An eligible ,aMcmber must choose the ,,B.etirement b!lentfit provided in Subsection
3-4-7•1, hereof, or ouc 01 ,!le mircrnent options provided in Section 3-4-8, hereof, at the
same time the eligible Rll)1em:ier elects 10 participate in the DROP.
E. Participation. An elijlible fllll1ember may participate in the DROP only once .
An eligible llllzlembcr who has reached ~ormal •Retirement a&ie must elect to participate
in the DROP within ninety (90) days after the later of attainment of Rt:!ormal ,,Retirement
aAl;e or the effc·tivedate of the DROP .
An eligible m,Mcmbcr · may elect to participate in the DROP upon filing of written
notification with the Retirement Board not less than sixty (60) nor more than ninety (90)
days prior to the ci•teofintenrlr.rl particip•tinn .
F. Term . The duration of a participating DROP fflll1ember's participation in the DROP shall nut
exceed a total of three (3) years. As a condition precedent to participation in the DROP, the
participating DROP mMember shall execute an irrevocable agreement wi.!> the e~ity in the
form prescribed by the Retirement Bonrd, which sh•II , among other items, clearly and
unequivocally state that lhe participating DROP m,Member must retire no later than the date
prescdbed in the agreement which may not exceed the third anniversary of the panicipating
DROP mMcrnher's participation in the DROP, and the participating DROP fflll1ember shall
also aclmowledge that no disbursement of any DROP funds can occw absent the retirement
or ceath of the participating DROP mJi:1ember .
G. Interruption of Participation. If the participatina DROP fflll1ember's participation in the
DROP is interrupted by military service, there shall be no interruption of membeisbip in the
DROP. Such a participati:ig DROP 9\ti1crnber's pfcnsion shall continue to be paid into the
participating DROP m,Mcrnber's UKOP account while in the military service for the balance
of the three -year maximum term elected by the DROP eMembet under S·Jbsection F.
H . Effect cm l'urtic:(r,utiun in the Plan. Upon conimencemcnt of the eligible atMcmbcr's
participation in the DROP, a mtdember's ei;;redited s,Service, l{L-lal 96vcraae fflll1onthly
<>{;;ompensation and af:.ccmed e~enefit shall be frozen. A participating DROP eMember
shnll not share in nn}· subsequent fon:,ula improvements. However , a participating DROP
eMembcr shall share in any ad hoc increase granted lo ,1!,etired eMembers .
I. C:ontribution . Upon commencement of the eligible fl\ti1ember's participation i:i the DROP .
the ,,&etirement e,aenefit or l"fension provided in Section 3-4-7 and Section 3-4-8 hereof,
shall be paid into the participating DROP ~ember's DROP account. E[ectivs on and after
December 31 2012 the Member contrjhu1i.Qll;.C;lll'J~Qll 3:l·S·l shall be pajd into
the gar1iciga\ipg PROP Msm?er's DRQr iGSPWU · ln no case sh:.1 ·1 t1e e~ity contribution.
provided for in Subsection 3-4 -5-2 hereof, be used to fund the DROP . The limitation§ gp
q,ntribmiops unris;r Coric srstioo 4 i 5ic't shall anni> m Mcmhcr oontributions made to the
DROP accqunt -~. ~an.ounts transferred or paid to a participating
B!Membcr's DROP a:count shall not const itute ann"al adrl iti ons under C-de Section 415
J . Administration of DROP Assets. Participat.ng DROP fflj:d.~mbers may direct faeir DROP
money ,o any of the investment options approved by the l!lloard for the DROP . There shall
be no gJaranteed rote of investr~enl return on DROP deposits . Any losses, charge, or
oxp~nse s in owred b}' the part icipating DROP ffth1c,nber in such fl\ti1cmber's DROP aC<'~unt
by virtue ofU1e investment options selected by the participating DROP fl\ti1ember , shal not
17
be mode up by the City or the Plan, but ell of same shall be borne by the ?•rticipating DROP
lfltd,~mber. Transfer. between investment options shall be :o accocdimcc with the roles and
l'Cb'lllations of the DROP . A DROP account shall be csta':>lished for each participating DROP
m,tdemher . Such DROP nccount shall be adjusled, no lcS< frcquenlly lhnn nnnunlly for
conlributions, dir.trihutioni; ond net invcr.lmc.nt earning,: and lom~es.
K. J(c:~uluduni;. ·n1e Rclin::mcnt 13C\anl is lluthmizcd to adopl rulr.s nml rcgu :11Lin11~ i;u·1crning
1111.:DROP.
1... frt!I'. lf ·J,c DROI' acr.ount shall he subjecl to any foes or charges of any kind , such fee, or
cha :·gcs sh•ll he clrn rgctl lo the pnrlicirating DROP mf:demhcr's ncenunt .
M. Form of /i(Jymcnt. For purpo~c.q of this Subsection 3-4-7•8 hereof, a "retiree" :s a
panic1puting DROP •AM.,mber who lerminat.,,, employment or reaches the lhrce-year limil
for participation in the DROP. A retiree must choose one nf Ille following fonns of payment
from the individual's DROP account:
Deferred Payment . Distrihutinn from n l)f:OP ,ccounl may hr.·rlr.forrcd uni ii a dl!lr·
de.,ignotcd by the retiree. When de,ii;nnting lhc dote upon wh icl, distribuliom; sh.ill
commence, lhc retiree n,uot alno dc.signnle tho fom1 of pnymcnl from one of the uvuilnblc
options. Regardless of lhc dale cho::cn by tht: rcli1ce, all disl1 ihu~iorns must cum1m:m.:c nu
lnier than U,r · r in which the rc1irce Dltnins the age ol' 701/,;
2 . lump Sum. A one-lime clistrihJlion of lhe retiree's cnli :-e 11ccoum balnncc, includ ing a
direct rollover u11llcr Subsection 3-4-17-3:
3 . Periodic Payment-: Dc.rignnting an Amount. Distribution of Lhc retiree's occuunt bu luncc,;
by monthly paymc111s i:l an amou11l Jcsiguatcc.1 l.,y tl1-:: rt:lirc1;;1 un:.il ll1c c11lirc baluncc or
tltc account is distributed;
4. Pe,.; lie Payme111s/or a Designated Pericd o/11111e . Monthly payments to tlie retiree for
a period designated by the rcliree. The payment will be colculatccl such tha. upni: the
occurrence of the last monthly payment, the entire haln11ce oflhe account will be
distributed;
5. Initial Minimum Required Distribution. Account balance is dislributed as periodic
paymc~ts Lita! are calculated based on the retiree's life expectancy (and lhe life
expeclancy of the rchrec's designated beneficiary, if applicable); or
6. Combination of Lump Sun, and Periodic Paynwnl•: An initial lump sum paymcnl of on
amounl dcsib'llntcd by the retiree, followed by a designation of a number of subsequent
monthly payments or an umoum payable .on a monthly hasis.
Distributions shall be made in accordance with die requiremenlS of regulations under
.. Code Section 40l(a)(9), including minimum incidental de;,th hene(h requircmems nf. ..
those regul,tions.
Jflho reti,oo e1el,eo no eelootien a& le fenn efv•)111011l iUiin lltiFl) (39) da)• uf
!enlliRalieR Bf lllllpl8)'111l!III Bf "*PiMtiBn efU,e tllfae) ear limil fer peflieipalien ie the
~ l..tRfl £um payeiaet £hall he NIie.
18
N. Participating DROP Memher'.< Death : Spousal Beneficiary . !fbe participating DROP
mMcmber dies during the period of the par.i cipating DROP ffllliember's participation in the
DROP and the participating DROP ml'i{ember's des ignated ll,flcnefici&r) is the participating
DROP ffllliemher's sun•iving spouse to whom the participatin11 DROP RI.Member was legally
married at the time of the participating DROP ~ember's ccath, the panicipating DROP
mMcmbcr's de.,ignatcd lt,flcneficiary shall receive, at the ll,flcncuc.:iury's option, a lump sum
p•ymcnl from the deceased pa:ticipating DROP mMcmber's individual DROP account
balance or equal monthly in stallment payments from the deccas::d participating DROP
mMembct's individual DRCJ> accounl over a period not lo ••c•t:d tl1c spouse's life or life
expectancy . lfne seleeliae is made hi ,he de&ilPl81Bd lleneiieiai, .. ~thin si1111• E6Q) dai•s of
dealh efl!te pllflieipali&g DR.OP Hl991be,, a lwnp s•m f!ai•ment silall h FRade.
0 . Pnrtic1pnting DROP Mr.mhr.r'., Tlr.cth; Non-Spousal Beneficiary . A married participating
DROP ~ember may designate someone other than hi• spouse to be a primary
l!Ji!eneficiary, provided spousal consent as prescribed in Subsection 3-4-8-7 , hereof, is
obtained If th~ participati ng DROP m,tdemher dies dun,1g the period of the participating
DROP fflldemher's participation in the DROP, an'I :be participating DROP mfdemher's
designated b_Ueneficia.-y is someone other l'uln :he participating DROP ~ember's surviving
spouse to whom the panicipa ting DROP mMcmber was leeally married at the time of the
participating DROP m,Member's death, the designated 1!)1enefic1ary shall rc:ecive a lwnp sum
payment equal to the deceased participating DROP mMen ·ber's individual DROP account
balance.
P. Participating DROP Member's Death; No Designa ted Beneficiary . If the participating DROP
mMember die, during the perincl nf the particip•ting DROP m,Member's partici~ation in the
DR.OP , and th• designated ll,fleneficiary ba.; not survived the participating DROP m.tl::(ember,
the participaiing DllOP "'1l:l,embers estate shall receive a lump sum payment equal to the
deceased participating DROP m,Member's inclivirlual DROP accoun : balance.
Q. No Impact of DROl' Participation on Other Death and Disabi liry Benefits . DROP
participation shall not affect any other death or disabiliry benefit provided 10 a m,Member
under federal law, state law, ~ity ordinance, or any rights or benefits under any applicable
collective bargaining agreement.
R Retroact•viry (Back-DROP). For purposes of this Subse.;tion 3-4-7-8(R), "retroactive
p2rticipa1icn date" means January I, 1999, or such later date as would have been on or after
nn eligible ~ember's retirement date, but pri or to the effective dale of the DROP, and
wnich was selected by the eligible HtMember to commence participation in the DROP .·
Notwithstanding Subsection 3-4-7-S(A), hereof an eligible mMcmb er who would hnve
qualified for the DROP on his retroact ive participation date, had the DROP been in effect on
that date, may elect to have his individual DROP accouot credited with a one-time lump sum
payment. Such .one-time lllDlp sum payment shall equal the su r-, of the r,umber of pJ!cnsion
payments which would have been pa yable prio r to the effective late of the DROP, had they
... commenced on the ~ember's retroactive.participation date, cred ited with interest.using .the .
actuarial interesl rate assumption prov ided in Subscc.:1i un 3-4-2 -2(C), h=reof.
Such lump sw.~ payment shall !>e made as soon as administratively feasib:e after the effective
date of 1he DROP . If a part icipating DROP lfiMernber elects to have the ,oe-time lump sum
payment depo.silP.d intn hi, DROP accnunt , the three-year period specif:cd in Subsection 3-4-
19
7-SP. hereof, will begin to run, not on the date of such election, but on the participating
DROP ~ember's retroactive pAnic.ipation date.
S. Fiduciary li~/Jilit_v . The DROP is intended lo follow Section •04 (c), of the Employee
Rcti 1·emcm l11come Securi1y Acl of 1974 and 1hc applicable Dcpa1tment of l,nhor
Rcguktions. f'idueinric.s of the Pion may be relieved ofliability for any losses which urc the
direct and necessary rc~ult of invc~llncnt ini;t1~.,ction!<I ~ivcn by o. purlicipant.
J-'1 v: Optionnl Forms of 13cr,cfits.
J-4-8-1: Gcucr:il.
'' ,1hjcct to such mtifom1 rules and rc~,ulations •• the •Retiremcn: 1,ijonrd may prescribe and the
•:s lrictions eontait,.,_➔ in this Section 3-4-8 hereof, a MMember or ¥:li;:estcd m,Member may, in
lieu of the basic •B.ctircmcnt l,~encfilll provided in ~oction 3-4-7 hereof, elect one of the
following forms of ,ll,ctirc111c1111,a,11c!ils which slmll be the ue,,:tuaria : t1~4uivalcnt of the
hcnelit to which he would otherwise be entitled. In case of a married Member whose spouse docs
not consent as described in Section 3-4-8-2 hereof, payment sholl be mad" according to Section
3-'1 ~ ,l.. The mMemhcr or ¥~Cstcd mMc111hcr mu st t;1ke nny election of an optional benefit in
w, uinQ. and such election must be fik-d with lhc •1!,ctircmcnt a,!io:ird at least thirty (30) days
prior to the due <late of !he first payment of •Rctiren,cnl hjlcncfiL, under the i,J!lnn . The election
uf an uptiun muy be clmni;etl at m,y time prior lu thirly (30) tl:iy s prc:cding the due date of lhe
first payment of •ll,etircment l>,liene!its under the t>l!im,. l·lowcvcr, an optional form of payment
may not be elected unless the value of the payments expected to be paid to the mMember
exceeds !illy percent (50%) of the value of Lhe total hcnefits to be paici nnder sur.h nptinnol fn,w,
3-4-H-2: Qualified .Joint nnd Survivor llencl'il Option,
The ~ualitii:d !01111 nnd Survivor 8cne!'tt opt:on provides an adjusted monthly Rctiremon'.
Benefit payment during the Retired Mcmbds life ; and the spouse (to whom the Member was
married when his Retirement Ben. rit comrnenccd), if surviving at the Memhers dcnth, ,hall
receive thereafter for life a monthly Retirement Benefit of fifty percent (50%) of the ndju,tcd
mor.thly amount ?•id to the Member .
Within n rcnsonaile time before the Member's Retirement Benefit commencement dute
hereunder, tl,e Retirement Board shnll provide to the Member a wrillen explanation of the terms
and conditions of the Qualified Join! and Fifty Percent (50%) Survivor Benefit set forth herein
nnd the effect of :ofw1ing it. If on or uftcr Junuury I, I !187, lhe Employee wishes to elect ·a fonn
of payin~nt other than the Qualified Joi11t mu! Survivor Benefit (described in this Section), such
election witl not become effective unless his spouse (i f he has a spouse who 0 an be located)"·
consents in writing to such election, acknowledges the effect of such election and has such
r.onsent and ocknnwlr.dgment witnc.,sr.d b~ n Pinn rr.pre.scntntivr. or A notary public . A properly
completed benefit election form (fu rniohed by the Retirement Boord) must be returned to the
Retirement Doard within ninety (90) days prior to the Mcmher's benefit co1?u11cnccmcnl ,'utc . lf
.U)e Member files another election form after the earlier. form and prior LO his benefit ·
commencement date, the earlier form shall be annulled.
3-4.g.3: One Hundred Percent Joint and Survivor Benefit Option.
The one hundred pcre<:nt (l 00%) Joint and Survivor Benefit option provides adjusted monthly
Rct1rcment llenc!it payments during the Retired Membc:'s life, and upon his death after
20
retirement, continue payments in the same amount lo a designated Beneficiary during the life of
such Beneficiwy .
3-4-8-4: Fifty Percent Joint aod Survivor Benefit Option.
The fifty percent (50%) Joiut and Survivor Benefit option provides reduced monthly Retirement
Benefit payments during !be Retired Membe(s life, and, upon ltis death after retirement,
continues payment in an amnnnl squal t,, one-half(½) of the amount of such reduced payments
to a designated Beneficiary during the life of such Beneficiary. Payment shall be continued to the
designated Beneficiary for life.
3-4-8-5: Five-Year Certain and Life Benefit Option.
The five (5) Year Certain and Life Benefit option provides adjusted monthly Retirement Benefit
payments during the Retired Member's life, and upon bis death after retirement within the sixty
(60) montl: period, payments shall be continued to the designtted Beneficiary for the balance of
the sixty (60) month period .
3-4-8-6: Lifetime Benefit Option .
The L . fetimc Benefit option provides incrwcd monthly Rctin:mcm Benefit payments during the
'Retiree Member's life with no continuations of payment after his death .
3-4-h-7: Beueflclary .
The Member o: Vested Member must designate his Benefi cia.-y in writing . If on or after January
l , 1967, a married Member or Vested Member wishes to designate someone other than hi•
spouse lo be a primary Beneficiary (or wishes to continue, after Janua.,y I, 1987, such a
designation made prior to January I, 1987), such designation will not become (or continue to be)
effective unless bis sp~use (if his spouse r.an he located) consents in writing to such designation
(or form of benefits) which may not be changed without spousal consent (or the consent oftbe
spouse expressly permits designations by the Member or Vested Member without any
require.moot offurtier r,:,nsent by the spouse), acknowledges the effect of such designation and
has such consent and acknowledgment witnessed by a Plan representative or a notary public.
Su -sh designation shall be made in writing upon• form provided by the Retirement Board and
·shah he filed with the Reu.r:ment Board. The last such designation filed with the Retirement
Board sha:I control. The Member or Vested Member may designate a diJfc:re11t Beneficiary for
DROP benefits , Retircmcul Benefits and for death benefits d::scribcd in Sections 3-4-6-5 awl
3-4 -9.
·········,••-' ,., ..
3-4-8-8: Minimum Monthly Pnymcots.
If the monthly benefit to -;;;~Jch any Member, V a.t•~ l 'elllhar or Beneficiar; jhall become
entitled under the Pinn sholl be less thon one hundred dollars (SI00 .00), the Rr.tirement Roard
shall hal-:e .the eight.to di :ect that the Ac:u•rial Equjvalon\ 9( such \>enefit ~ha l! \>e ?.;µd _in -~ lump .
sum. er '8 inslaiimenl9 at sYeh inl""•als as ..,,II rl!&lllt ia eaeb payment aftleWlting teat least ene
hwndnd de lla,s Ell 00 00),
3-4-9 : Death Benefits.
3-4-9-1 : Death of an Active Member with Five (5) or More Years of ~Service.
2 1
1rn11 •ctivc Menibcrdics after completing five (5) or more year• or~ ft:ic1vicc, lhc
su, viving •TJUusc shall recciv: finy pcrccn• (50%) ofU1c Mcrnbe(s at.ccrued la!}cncfil for one
hundred lwcnly ( 120) monll,s ca"tain and life lhcreaficr . However, if the spouse is more than five
(~) ycnrs younger than the Member, the nwmhly benefits w,11 be rcdcctd by one nn<l one-half
percent ( 1.5%) for each ycor thol their difference in uge exceeds live (5) ycacs . If the Member is
not survi vcd by a spouse or if the s1,ouso consents le a designated Beneficiary other than the
spouse accordin11 to Section 3-4-8-7, the dcsiunotcd b.lieneficiory shall receive fifty pr.rcr.nt
(SO%) nflhe Member's monlhly nccm ,,d benefit for one hundred twenty (120) months ecrtoin. Ir
tl·.c Mc1nbcr is not 1mrvivcd by a Rp()UKc or desib'llnled Beneficiary, the one hundred twenty (120)
1r.oi:lhly pnymenls shnll he computed ond paid in• si,1gle sum to the Membc(s cs\Rte . The
pnyn,cnl to the su,viving spouse or designated Beneficiary will commence 011 tl,e {iist <lay oflhc
n·,inth following the date of the Member's death, or if later, the date the Member would have
allmncd age fifty.five (55). If a Membus death occurs prior to his fifty -!ifth (55th) tiirthday, the
Retirement Boartl may elect, with the conscnt of the Membe(1 spouse, designated Beneficiary or
csl11tc to µny the spouse, Beneficiary ->restate a single sum payment al the lime of the Member's
dc111h, equal to the Actuarial Equivalent of the payment ciuc when the Member would have
111ta inc:d ace fifly-five (55).
:\ .. ◄··9-2 : Den th of n Vested 011 l>is11blcd Member p..c.M.eml,pr with JI lli;mhilify Prior to
Com1ncnccmc111· of rnymcuts.
In U1e event• Vested Member or a di,(illlt,d-McmiJcr»;il.b Ppj§r,biljl~ dies prior to the
commencctncnt or payments from :he Pim,, the s~rviving spouse shall receive fifty percent (50%)
of the M e1,iber's Accrued Benefit for one hundred twenty (120) :11onth~ ccrloin und life
thereafter. However, if the spouse :s more U1an five (5) yeo:·s younger than Lhe Member.-, the
monthly benefit will be reduced by one und onc-hnlipercent (1.5%) for r.nc:h yr.ar th.it their
d1 !Tarence in ase exceeds five (5) yeors . lflhe Mcm,er is not aurvived by a spouse or if the
spoune consents lo• desib~l3\ed Beneficiary other than the npouse according lo Section 3-4-8 -7,
the designated Beneficiary shall receive fifly percent (50%) of the Member's monthly AccNed
Bendit Co, o:1e hundred 1weuly (120) moi:U,s u:rtuin. If U,e Member is nu : sJrvived by a spouse
or dcsicnatec Ben~fi ~iary, the one hundred twenty (120) monthly paymcn:s shall be computed ·
and paid in a sing·e .um m the Members estate. The payment lo the surviving spouse or
designated Benefc,ary will commence on the first cay of the mnnth foh ,wing the cute of the
Member's deaU1, 01 ,r I tier, the dale the Member would have attained fifiy.five (55). If a
Mcmher's death occurs prior tn his fifty.fifth (55th) hirthrl,y, lhe Retirement Board may elect,
with the cons~i:t of the lvt'ember's spouse, designated Beneficiory or estate to pay lhc sp·.,usc.
Dcncfieiary or estate a single sum payment ot the liinc of the Member's dcoth, cqunl to the .
Aetunr iul Equivalent of U1e payment due when the Meinhe, woul<l have allaincJ •11• fifiy-ftve
(55) ..
3-4-9-3: Dcntb of nn Act.ivc Member lletwccn Normal nnd Delayed Relir~mcnf Dates.
l" the "vent a Memher cantinue, in City r.rnploymcnt ,Iler hi, Rl::lonnnl •B,i,tiremenl IIJ;iutc and
dies before .actually retiring, then r.e shall be deemed to have retire~ _on. !lie first cay o :the ..
colendur month in which he dies . lf on optional form of• payment luis been elected~
benefit ifanx shall be dslcPPivcd bx the oPLiun clcctcdJf w1 ro 02tional foau or oax,m:uL.b;as
beep. elected the Mmnber's monthlx Accmed Benefit 1haH be naid t2 his survixins soou:;e for
~red twen\Y (120) months certain If the Member is not survived b) a spouse or if the
spouse consents to a designated Beneficiary other than the spouse according to Section 3-4.g. 7,
the dcsign•ted Beneficiary shall re:c,ve one hundred percent { 100%) of the Member"s monthly
22
Accrued Benefit for one hundred twenty (120) months certain . If the Member is :101 survived by
a spouse or designated Beneficiary, the one bu,•dred twenty ( 120) monthly payments shall be
com:>uted and paid in a single sum to the Me:nber's estate. Death benefi: payments shall
com.:Y,ence on tJ-,e first day of the month following the Members death.
3-4-9-4 : Death of u Retired Member or Beneficiary.
In the event a Retired Member or Beneficiary dies while receiving Retirement Benefit payments,
the death benefit, if any, will be determined by the fonn of Retirement Bene:it being paid. lo the
event tbul no designated Beneficiary is l:ving at the death of ouch Rotired Memb:r and term
certain payments are due, the Actuarial Equivalent value of the monlhly :n.•tallmenL• for the
bala.,ce of the tenn certain will be computed and paid m one sum to the estate of the Ketired
Member . If at the. death of the last survivin& Beneficiary following the death of the Retired
Member, monthly installments have not yet been paid for the full period of the tenn certain, the
Actuarial Equivlilent value of the installments for the baluncc of the term certain will be
computed and paid in one sum to the estate of the last surviving Beneficiary.
H:?-5 · MiDimum Plan Brocfit5•
~I amount of Plan WinsQlN uaid lo 1'1& Membsr tbs Member', surviving §99Jl§C the
Member's alternate navec and the Memb;r's Bensfid1rics shall at a minimum EAAal the
M;mher's Accumulated C.Ontnbutioos If not nccviomlv naid thi§ m'nimm shall be said to the
Msrobet'5 HFPsflcim in a Jump sum v &22n II edministcativo!v fwiblc foUnwinv the death m
the lest cecinient oLanv other Plan benefit P@vments ff nP desimeted BFPeficiaey survive& JhG
death of the Member anv Plan navmem, owed tu the Msmher's Bwcfisiary under this S5S:Sisro
li2:i.shtlll 12G mad; tP the Merpbpr'§ §}Jryiyipg §QPY§C g-jf pgp; \9 the Memb~
1±2-6· sumvor Benefits foe Dedh§ Dnrinr Milita..o· Sco1sr
Effective Jawarv 1 2007 if a Member dies whils nerfumrlns oualified miliWY 1EPdee Cwithiu
the mMnioe of Section 414(u)f 1l ofths Code) the Member shall he treated as having terminated
emnlovmEPt with the Citv due to hi1 death for nurnose., of env additional bmefits Cother thAP
benefit acc1Uals rcJatinc toths nsdod ofaualific<l ntilitftrv sroicel Provided under the Plan.
3-4--9-&,'1.: Supplemental Death Benefit for Members Hired Prior to January 1, 1976.
In addition lo the death benefit provided in Subsections J, 2 a.nd 3, of this Section 9, a lump sum
supplemental benefit shall be payable lo the spouse or, if U,c spouse consents according to
Section 3-4-8-7, to the designated Beneficiary of any active Member, Vested Member or disabled
Member who dies prior to the commencement of fietir-.mect e~enefit payments from the Plan .
The supplemental death benefit oball be equal to the amount of &Accumulated 6';ontributions as
of his date of death plus two percent (2%) of the ~ompensation received by him subsequent lo
December 31, 1975 and priortu January I, 19X3 . lf such Member is not survived .by a designated
Bendici•ry'. the Jum_p sum payment shall be made to his estate.
3-4-9-6A: Uulform Simultaneous Death Act.
2)
The provisions of any State lnw providing for the distri 'Jution of estates under the Unifonn
Simullnneous Death Act, when nppli •:able, shall govern the distribution of rlcnth henetits p ay able
untlcr lhis J'lan
3 -4-10-1 : Covcrn:;c.
Benefit~ :.hall he p:11(1 to a Member ltndi..:r th is Sccth111 3-Gi-l (1 l,~1 co r 1f Iii:-. c1111,lt1y11a:11l
b;n~1ina tcs for rc:isons nthcr lhnn retirement, Disubility er death .
~-4-111-2: Less 11,an Five Years uf Crcdilcrl Service .
U;~~er's emnlnYtncnr with thr Gi tv sods.be[\ rc th; Member 's Normal Rt;tjn;~t Pats,,and
~)J,:i;,,,lhs Mxmber comnleteG tbs five (S) ye.,r$ ofO:cdited Service needed to bs~~
~Jhe.P,lpn,phnlJ.Jli.\Y,Jbe~mb_eu,.Acc1•mulnted Con1:jhuti011r, \Q.J.hc Mrnnhw: or, in •bs
ovenl gf tb~M,;mbcr','l.dClltll,J~M~.GJ"'S B,nc{i cimwll!~~Jill.l..W0..cl:J:hll
&::llmll..c.JJE!il!!J.Ll:~~:i.!.l•"-M.!.!J.l,l<!Jil'.\:tJi~l!lil,ll.l\!lli\i.'l!J.\ll£1 :U..l!UiapdJ1 1iur !ll..!"1.llli!.l:.Y..L
.12.~ 1 Such pn~mc1~c;.iu.li.WlLi!llY.S..!ll£t:.J.:l!l.ll,l'c11 ;Jh;;,;,ud ~ball he in a.J.lllllil.li!!i!l
1?H~l.W.L. Ptwmvn.U.hall be mode as soon ns ndmnustP~lli;v9ble following the Mwnht.LS
llil.lli nnLion of wlPt>IPYIWilll .ald &iJlis[actjon of lh!i.!l,\l!i,\:,~lW£1))CI)\§ of Sccljpl) 4-0l(l).n.C.LhS
J.ui.crrol Revenue Code,;,rgyidcd that iC lh~.ruJ!l.suAl;<;JJIUliifl\cd Comributioos cxc~J:.J.ll.QQ,
lltc--McmhcrJnusLcoussul 19 WLYmcnl 1mu1~forc the Mcmbwr's Normal Rcti rkmcnt Ace 2r
dt:ath The .Mgnber'§ Araa1mulnted-0!filrib.Pti.owbnaid nm:Prdinc1Q,,1b is ScCJinr, 1-4-10-2 shnll
hwiude intere;:.,,ooJy to the dil\c 14£.MsmhcLJ__c;w~lJ.1.~h the Ciw ~uds mu!JJlall..P.£.t.
jns;J.vdcJntcJ:&;;' afis · thnt dote
/;1,el+kH+-m~ple)'tn"n' will, th• Ci')' teAnil1H1e.foH0,1sens-ether-!l.•atH'elif<>Rttl1!!;
!Ji,al;ilit')'<>Hl.alh-j,FieHa-kir~lftl.~llen;.l;l-•.l-JlROHG~UKl6ll•pletien-e~
7'Jill'S ef Crefaed f.er•iee, the eRl, beaelll le •h 'sh hu rhall l,e 21>til-leG-1!n<leHhis-J!lan-shall-l!e :
A, ·n,e emoanl efkis ,1 eaamalotad Ce11lFibaliens, ifan!l;i>lus
n, Twe-per-een\-{~'X.) of the Gempem·a1ie• neai •ad-by-(he-M,,.eer '""""'I'"'~""""
31, 19-5 ,me pr-i<>F-l<H,1t!llft~.
;1-4-10-3 : Jiive or Morn \'cnrs of Credited Service.
Skoukl a I::,, Member,, sllllllhc_;u'J;~lcd Mcmher i[Jhc Me:nher's empl oy,ncnl with the City
tcnninatc~;
D:,. ij:or 1car.ons other than retirement 1hal §id i~fic c: th e;:~~!1)£:'llS or Scctipu )-4 -6-1 I l-4,;6;4
QU~. ;;md_ for CGHS90S other thntt Di snbility or death, nm!
,!l p,Crior to his Nonna! Retirement Dale.JW.<!
i:;. w~itlt five (5) or more years of Credited Service, be ma:• eleol ei!her.
/' Te le;:i••P. his ,A ee,1m11l-i-HH i~o R.etiremaAl Fund and beefnfte-fl
¥es~
24
B. Te ••••i"•• in :ie a ef all other bo,.eli!S, • ,ef>md ef 1,is heemRalated Gealriealiees, fll"s 10•0
pefeeet (2%l ef Iha Gelllflensation ,eeei .. ee ey him saes•~uem lo Deeember 31, 197! an<!
~Fior le JBAUilf)' I, '983 .
Jfsaak a 11emher tails te sleet ail.Im ef"'" •b• • ithi11 1tinot) {9Qj days aflor I~, <l•t• ef
lemliaaliea fFem "'" Plan, then lie aball be deel!'loJ :e ha• e eloeted te IOAYe his Aes~
Gea1ributioes oa d8Jln s,t aRd l,eeol!'le o llestea Member. A Vested 1'.=mber shall be entitled to a
deferred •,B.etirement Be~eill which ,hal l be one huodred percem (100%) of his Accrued Benefit
on th e date of his tennination of membership in the Plan. Such de ferred Retirement Benefit shall
commence on the first d•y oftl,e 11ext month following the Vestec Member's Nonna! Retirement
Date.
In lieu of receiving the deferred Reti rement Benefit upon his Normal Retirement Date, t.l:c
Vested Member may elect to receive a reduced Retirement Benefit beginning upon the first of
any mont:i subsequent lo his alia :runent of age fifty-five (55). The reduction shall be one-fourth
of one pe:-cent (.25%) for ea::h month (three percent (3%) per year) by which paym ents
commence prior to the firnt of the month following ai, Nom,al Retirement Date.
A Vested Member who,made contributions to the Plan beforeJanuaIV 1 1976 may elect at any
time prio: to his Normal Retiremc-nt Date lo receive, in lieu of all other benefits under the Plan
and provided benefit payme :its have not yet commenced, a refund ofb.is Accumulated
Cont:ibutions / if any . amibutabls to Member c.mtributions mads ·u the Planhs;fors; fauwuv I
~&! as of the date of the refund plus two percent (2%) of his Compensation rece:vcd
subseque:it to December 31, 1975 and prior to January I, 1983. I?; Vested Mernber who djd not
make sontcibu\iom to tie Plan h~fore-1am,1pcy_J 1926 max nnt s)eGI to rcceiye a refund ofhis
A.ccumulated Contribu~
3-4-IJ: Administration of the Plan.
3-4-11-1: H.otirement Board .
There is hereby created a beard to be known as the NonEmergcncy Employees Retirement B, ard
of the City of Eng,owood ("Retirement Board") wh ich shall be composed of seven (7) members.
One (I) oember shall be an elec:ed member of the City Council who shall be selected by a
majority af th• memhers nf Ci ty Council. One (I) oember shall be the Dire et er of FinBRsial
SerSses a~~ein~ City~~-Two (2) memoers shall be employees of the
City wbu a, c >vfou:ucrs of the Plan, who shall be selected by u vote of nil such Mem bers in
accordance with such procedure, a, the City Manager may adop t, from time to time. Three (3)
members shall be~ el ectors of the City who shall be selected by a majority of the
members of the City Cnunc:I. In addition, the City Manager, or his designee, shall serve in an
advisory capacity, a, ,n ex offic:al, nonvoting merr.ber.
Mei..,bers of the Retirement Board shall be appointed for four (4) year tenn s, provided the said
.member continues to posses s the qualifications provid.ed herein during the member's term and,
funhcr prcwiC.t',d tha t:
A The Cou nci l m1:anb e1 shall serve during it.is term of office as a Council member; and
8 . The~~;,,~,.,.;...,. w_~ sha ll serve during his tenure m office as
~i-ffiAAf Citv Trnasurcr .
25
Should a vacnnzy occur in the membership of the Retircmcnl Board, the same shall be filled for
the duration of the unexpired tenn only, in the sa:ne manner as provided herein. !'nor to entering
up on the pcr:"onnance of the duties of• mcmher oflhc Rct irc:ncnl 13oard, each member thereof
i '1t11l lnk c anJ :;ubscrihc an oath that he nccepts the ublil!alion s inwo~ed u11on him hy the
prov i,:ions nf th is !'Ian and that he shall faithfully perform the dut ies nf such office.
Fi vc (5) mcmhcr& o f the Retirement Boord shall constitute :1 <p.1orum . A II actions t:ikt:n by the
Drn1rd !\hu ll be n1>prnvcd by n maj c,rity vole ofu quorum of the ltctin.:mcn t Boord members /\II
nclioi 1s, dcci s io11s and determinations of the Board shall he recorded in the minutes of the
Retirement Doard and, unles s inco11sistc11 t with the provi sion::; oflhc Plan , ~ha11 be bi11Ji11g a uc.l
concl us i ve upot1 all intercs\C<l parties.
No member ol'lhe Doard shall receive compensation for his service on the Board hula member
may be re1m'oursed for reasonable expenses incurred in connection with his duties as a member
n f' 1hr. Bnnrrl .
3 -4-t 1-2 : Mnnogcmc11t of the l'lan.
In atldition lu Llic puw~1 s am! olJligation:i 1111po:,;i;:J upon the Domd as T ru stc:.: pur:;uant Lo
Sub sect ion 3-4 . 12~ I hereof, L:1e Retirement Board shall hnve aH \1o wcrs ncccs sury to cffoct the
mc1 :1agcment :.nd ndm111i slrnlion o f the l'lan in nccordnncc with 1ls temts, including. b·Jt not
limit ed lo , the fo llowing :
A . To e~tahli~h rule!; m~d rcb'l.llations for the administratiun of ~he Plan , for managing and
di sch&rging 1:,e duties u[lhe floarc;. for th e F~oi'lrr.l 1~ nw n envcmmc:nt anf. prnccrlurc in sn
d ni ng, and for the prcsl!IVHli u n and the prou:cli on of the Fund
fl Tu iutcq,rct tl1c p1ovi s:011s o f the Pl an and lo dctc:r111i11 c •iny and all <1uestions arising und er
the Plan or i1~ co1mcclion wilh the achni:li slrn tion lhcrcol'. A n.:cor<l of s uch ac;Liu11 11111.l :ti!
other mailers properly coming before the Bonni ,:hall be :,c pl and r,reserved.
C. To dctcnniue a!! matters affecting the eligibilit y of any Emplc,ycc lo be or become a Member
nfthe Plan .
D. To d'ctcnnine the amount o f the Merr1ber's contribulions lo be withhe ld by tl:e City in
ncco rdnncc w :th the Pinn and to maint.uin such rr.cords of Accwnuloted Contributions us are
necessary uu~er said Plan.
E . To dclt!rmm c the Credited Si.:rvicc of any t-.fornb cr and to compute th :: mnount of Retircrnc:1t
IJcucfil, or other sum, paya ble unde r the l'hm to ;111y pcr:;o n.
F. 'J'o authorize :md dire.ct r1 II cii!;:hurs r~mcnls of Rclircmcnl 3cm:lils and other sums under thi.;
Plan .
G. T u c..:111p ~oy :rnch couu sel aud agents and to obtain such clcr:c.11, mc:d ical, legal and actuarial
services as it may deem nece ssary or :.ippruprialc in carrying out Lhe pn .. 1visiuus oithe Pla.i1 .
if. With tl :e advice of its actuary lo adopt , from lime to lime for ?urposes oft.he Plan , such
mortelily and other tables as ii nay deem nece ,ssry or appropriate fo r the operation cf lhe
Plan .
26
I. To make ur arrange for va luations nnd appraisals of Fund assets held under the Plan , anrl,
with the advice of the a:tuary, to determine the liabilities of the Plan.
J. fo hold sssr.ts of the Plan in a special accowit enti tled "Retirement Plan Fund," and invest
and reinvest the same and to make such withdrawals therefrom as are authorized hy the Plan
for the pa yment of Retirement Benefits and the exp< ,ses of the Board and the members
thereof.
K. To create reserw:~ irorr. such assets for any purpose .
L. To mr · 'lla in su1,;h records and accounts nnd to render such financial st.11cments and repons ;tS
may be required by the C .ry Council.
M . To authori;<e one or more. membors of the Retirement Board to sign all legal documents and
reports on bel:aliofthe Ret irement Board .
I\. To perfonn scch other duties as may be required of" Plan Administrator under the
applicabl e law s and regu lations .
3-4-11-3: Miscellaneous .
All proper expense incurred by the Retirement Board in the acbinistration oi the Plan, if nc,, paid
by the City, shall be paid from the Fund when authorized by the Retirement Board.
The Retirement Board shaU have no power to add to, subtract tom or modify any of the terms of
the Plan, nor to change or add to any benefits provided by :he Plan , nor to waive or foil lo apply
any requirements of eligibility for Retirement Benefits under the Plan .
A member of the Retirement Board shall not vote on any matte: re.lating solely to himself or to
his rights or benefits under the Plan . lf a Board member is so disqualified to act and the
remaining members cannot agree, the City Cowicil shall appoint a temporary sutstitute member
to exercise all the powers of the disqualified member concerning the matter in which he is
disquulified.
The decision of the Retirem en t Boord and any action taken by it in :espect to the management of
the Plan shall be conclusive and binding upon any anc all employees, officers, Cornier employees
and officers, Mc1nbers, Retired Mr.mhers , Vested Members , their Benefic iaries, heirs,
distributees, executors , ad mini strators and assigns and upon all other persons whomsoever, but
the ·Doard ·at a11 illl t;rnes sLall act ir. a unifo r:n aud nondiscriminatory manner. Ne iU1er th~:
establishment of this Plan nor any modificat ions thereof or any action take n thereunder or any
omission to act, by the Board, the City Council or any of th ee· members shall be construed as
giving to nn y Member or other person any legal or equitabl•: nght against the City or any officer
or emp loyee thereof or against the Retirement Board , the City Counc il , or any of their members .
3-4-12: Retirement Plan Trust Fuud.
3-4-12-1: Appui11twc11t uf Trustee.
27
The Retirement Board of lhe Cil y, and its members, are hereby appointed and co nsti tut ed Trustee
or 1hc J(cti rem cn t Plan Fund nnd shall hold , manage and con1rol the same 111 accorda nce with the
provisions herei n contained.
3-4-12 -2: 'l'hr Trust Fmul.
1\II C i1y :incl Gm plc ycc cotll rihutio ns :met ni l invcr.tm cnt s lhcn·o f, toge th er with ;-i ll
.icc nirluli11io11:-i 1 acc.:ru ..ilr., cnrning:: mid inco me wi lh J'C !ip t:c t l.hl:rcto, i,ha ll he.: lu.:ld hy the T rw;tec in
tru st hc11..:11 ncl cr ,1.~ th e Tn1s1 hmcl fo 1 u~c in provicl in1; the hcncfils under th e l'i;m, No p11rt o fth ~
!-:Uid corpus or inconu; ~mall be used rm ur Ui vcrlcll top: r1x1st::s olhc1 thi1ll th e exclusive hc1 11..:f'i1 of
1hc Mcmhcr . .;, Rct in.:d Mcmb crn , Vc Nlcd Members, their Beneficiaries or t:states under th e Plan,
pn.:.,r lo the satis fo c·.ion o f all hab 1l i11es hereunder with respect !o them, except such fun:ls w!m:h,
up on tcrn :in ati on of the Plan, are in excess of the amo unt requ ired lo full y f~nd the Plan and arc
due solely lo erroneous actuari al assumptions . No person sha ll have any interest in or righr to any
part 11f tht: assets of the Fund except as and to the extent expressly provided in the !'I on.
3-4-12 <'\: Purposes and Au(hori1y of the 'frnsl cc.
ii j-. tll c puq,u~c and i11tc11t uf Ili c Ci ly .11 ct.1t 1sti 1.111i ng ;uni appui11 l :11 1;: th~ !{c li 1i.;11 1c1 1l Du:ird m
Trustee of the Tmst Fu11c! to i;ivc t.\1c Rctil'cmcnt Boanl rull puwc: to csl:ihlish such invc.°'t mcnt
or ;m rchas111~ progrnnu; :rn lh :; 1<.ctircmcll'. ~o;IJ'd may deem necc."smy or :1ppro pr ia te tO prov id e.
assurance llmt th ere :;ha ll be an ad equate SO'JTCC fo r the pay11:cnt of all hc nclit s providcc! h:;rcin.
The T rustee, however, sha ll 1111t he rcsponsihlc for th c collc c:ion of any Ci ty or Employoc
co ntrihulio ns. In sc1ving .is Tru stee, the Ret irc1n cn: Bonni may Uctcnninc Lo :
A. Use lh e Tnisl l;tmd for th e pu:·cl1:1 sc of vnc or more gro up annuit y, or o th er, insura nce
policies f,um o ne ur mor : ln su nmcc Compn nics nu th orizcd to do bu:;incss wi lhin the Stutc of
C:t•lrnt1lh1, wl1 c1·cL y sa id lnsurani.:e Compm 1y agrees lo ,,ay all 01 a po1tion oftl,c Uc11cfi ts
hcn.:in provi ded f<,r;
B. Contra ct with a commercial bank , chartered under either th e statut es of th e Stale r,f Co lorado
or the Uni ted St ales of ,\merica and doing b~siness w:thin thi s State, with a ll1Jsl co mpany
ori,:mlized pursuant ro the stalu les of the Stale of Cclora<'o and doing bt:s incss within thi ,
Sl;}\C', or with a member of the New York Stock cx<.:hange or th e Am cricn n Stock Ex.change,
,l oi ng l:u sine~s within th in Stat e, to have any of nuch p:irt ies inves t funds on behalf of the
T rust ee;
C. Directl y inv es t th e 11sscts of the Tru st Fund ;
). l,,:tab hsh an ill'lcslmc,11 prngr.,m, partly fu nd ed by m,:urancc an :I pa 11 ly fonded by
in ves:mc nt s; or
E. Rctoi n on a discreti onary basi s an investmcr,l ;!dvi so r li c::.1rn i.:d ar. r.uc h und er the U nited
Stutes lnvc:;tmcnt Advi sor's Act of l 940 , which investment adv isor is uls o 1111 inves tment
<.:ou usd as tlc:£i ncLI in sa id Act.
3-4-12-4: luvestmenls .
In serv ing as Trustee, the Retirement Board shall be authorized and empowered , in its sole
discret ion, lo invest anrl rei nvr.i;I the Tmst Fund as follow s:
28
A. Assets o:· the ,Jietiremeot ¼l;wid (oilier than assets of the 8ff1J! !2&QJ.! accounts ) shall be
inve sted in aeeurdancc with Colorado Revised Statutes Section 15-1 .1 -102, under the
Uniform Prudent Inveitor Act .
B. As,ct, o:the 8ff1J! ~ ,1 ccow1ts shall be inv,;tcrl in accordance with Colorado Re vised
Statute s Sect ion 24-54-l l2(3)(c).
3-4-12-5: Trustee's Po"ers.
Subject ,o the pro visions of Sub sections 3-4-12 -3 and 3-4-12-4, hereoi, in its investment and
admin istrnti on of the Trust Fund , th e Trustee is authon,ed and empowered with respect to any
securitie s ur other property h?ld U.1 th e Tn1~t F11rirl :
A. To seli , exchange, convey , transfer, lease for an y pe riod, plc,J gc, mortga 5e, grant O?tions ,
contract with respect to or otherwi se encumber or di;pose thereof, al public or private sale ,
for cash or upon credit or partly for both, and no person dealing with the Trustee shall be
buuud tc sec lo th e application of the purchase money or lo inquire into the ·1aii dity,
expediency or propriety of any such sa le or other disposition .
B. To sue, defend, co mpromis e, arhitrate, compound and settle any debt. obligation or claim due
it as Trustee or any other suit or legal proceeding involving the Trust, and :o reduce the rate
of interest on, to extend or otherw ist: modify, or to fo reclose upon default or otherwise
enforce l11Y such debt, obli gation or cl aim .
C. To give general er spec ifi c prox ies or powers oi attorney with or without power of
substitution .
D. To vo1 e in persnn or by proxy on any stocks, bonds or other securities for the conversion
thereof into other stocks , boncis or securities , or to depo sit them in any voting trust or with
any protective or like committee or with a trustee or depositories designated thereby, or to
cxcccisc any rights to subscribe fo r additional stocks , bonds or other securities and to make
any and all necessary paymen:s therefor, and to join and partic ipate in or to di sscn, fro:n and
oppose an y reorganization, recnpitalizntion, consolidation, liquidatior:., sale or merg er of
ca,.,orations or properties in whic ;, it may be interested as Trustee, upon such tenns and
cc,nd iti cns as it may decrr. wi ~c.
E. To regi ster an y secunties or other property in ilS own name or in the name of tts nominee,
with or with out the additi on of words indici..!ting that such sc1,.:utitics arc held in a fiduciary
capa ci ty, or to bold any securit ies in bearer form, but the books and records of the Trustee
sh.i ll at all tia'!es show th at an such investments are part of the Trust Fund .
F. To rcLaio , manage , operat e, repair, improve, panition , ded icate or oth~rwi se deal with any
rea : estat e held by it.
G. To retain unu .ve.ted suc h cash as it may de em necessa ry, without obligation to pa y interest
thereon .
H. In genecal , to exerci se all power s in the management oflhe Trus t Fund which an y indi vidual
co· ,d ex erc ise in the mar.itg em ent ofJ:rupe 11y ow ned in his ow n light.
2 9
Nc..:cc:.s ury parties to any accounting1 litigati on, or other proceedings shall include only the
Trus lcc m,tl 1hc City Cuu11cil, and lhe settlement Gr judgment in any such case in which the City
is duly ,:civcd or cited shall be hindi11g upu11 ull Members, Rehrcd Members, Vcslctl Members,
or Bc:·1cUciarics under th:: Plan, and upon all pcrnon s ciniming hy, thmugh m under th em.
3-4-t 2-C.: ,\dm inisc r:tliu11 11f tl1c Trust F111ul .
The Trcr.tcc :;lnll pny or di r.tribute all Plan bcntfits from the T rust Fund in such fom1, in such
mnounL~, nt r.uch ;imcs and lo such payees ns m!ly be aulhorizcd :ly th~ Retirement Bonrd .
The Truslcc may employ suitable :,gems uud counsel. The expenses incurred by the Trus1ee in
tht: pcrfommm:c of its duties hereu11der an d all proper charges and rlisbur.:ements of tl1e ·rrustec,
including all laxes lawfull y assessed upon or in re.spec! of th e Tn,1 l'und or its income, sha ll be
charged and paid by the Trustee from the Fund . No mem ber of the Rctiren:c111 llo,ud, as Tn:stee,
sl,i1 II receive compensation for hi s se rvices ns such but :;hall be entitled to be reimbursed fo r .JUY
cxpcc ~:es incum~d by him 0 11 hc l1 :1\f of the Tms t Ft1nd to 1he extent !hat su ch cxp1.:nscs arc not
p11id by th e C:ity .
The Tnmtee ~h~II keep dclni lcd, accun,lt: :i ccounlr. of all in\ic!ttmcnti:1 rtct,ipt~ and cli nbur~emenl ~
.in<: o th er tra11s11ctioas hc rcunclcr . All accounts, hook:,; :i 1ld records l'clating tl1crcto sha ll be opc1\
tu i11 spci.::.tio11 by mt)' pc1 so1 1 cl csignat .'.:d by the City at nil rcasonaLlc time s. Tlic Trustce shall
maintni n rnch rc.:cur.:ls , make such co mpututions and pr:rfonn such mini stcri.\l acts as the City
fro:n l11nc to time may request. On or before August l and Fcbnmry I of each year, the 'l rustee.
shall file• report wilh the City in such form ns the City may request. This rcprnt shall show a l:
purch;\SC.Ci , s:1l cs, receipts, cl isbu :-scmcn ts and other tra11sa ctio11s effected by the Tntstcc during
the s ix (6) m01:th period for which the rcp ott is filed. ll shall contain an exact description, the
C-J)st value a~ shown on th e Trustce1s bo::Jk!i and the r.1ark1.:l va lu e as of the end of suc'.1 pt:riod of
every item lhen held in the Trust Fund . The Truslcc shall be fo1wer relieved from all liability to
the City, lhe Fund, and any Member or Beneficiary with rcr,pcct lo the propricly of any of it" ·
or transactions shown in such report unless within ninety (90) days ofter the re<:cipl of such
rcpurl 1 Lhc Ci ty gives the Tmstce written uot :r-= ..;i tts cl>jet.:1ion or objections to any matter set
fonh therein.
The Trustee sha ll not be li able, ci l'1cr as a body or individaally, for the maki ng, retention, or sale
of ,my itwesuncnt or reinvestment made by it o:-orig innlly received by i: as herein provided nor
for any expense or liability, hereunder. nor for any loss to or diminution of the Trust Fund unless
dm·. to n r ari sing 1rnm it s own gro ss ncc:lit,:t:nc:c , misconduct , clishonesty or la d of 1;~oocl faith .....
The Trustee may consult with counsel anr. sha ll be fully ;>rotcctcd in acting upon the advice of
cou11:1cl. Unlcm: ot herwis e .,dvir.cd, the Tru ::aec mny m:.mmc that the Pinn nt oil time~ qm1lif1t:a
unde.-lntcmal Revenue Code E•:clion 401 (a) and tha 1 tl,c Trust l:crcby cslablishcd ts at all limes
tax .exempt under internal Re:ve:iu~ Code: Sectio n 501(a), a~ amcmle<;, or a successor provis10ns .
The Trustee shall have no respons ,bility for the accuracy of any infonnntion furni shed it by the
City.
3-4-12 -7: Jlcmo,nl of Trustee.
Nothing herein shall bL constn1ed to prohibit the City Council from removing the Retirement
Ronrd os Trustee of the R~lircrr.ent Fund by appropriate amendment to ~.i.is agrctme:::1l. Upon
removal of the Trustee, the City Council shall appoint a successor l rus1cc or funding Agent.
Upon delivery hy the rem :weri Tn1st ce tn its succe):;mr of all property of the Fund, less such
reasonab le amount as it shall deem necessary to provide for its expenses, and any taxe ! or
advances chargc::ablc or µayablt:: uut of the: Fw 1J1 the ~ucci::ssor Trustee or Furn.ling Agall shall
thercupor il•ve the powers and duties as are conferred upon it by the Trust Agreement or group
annuity con~ ... ct. No suce:ssor Trustee or Funding Agent shall have any o·Jl iga1ion or liability
w ith re:1pect to the acts or 01nission of its predecessors .
3-4-13: Retirement ·aenclits and !tights lnalico•ble.
3-4-13-1: lnalieuability.
Members, Retired Member<. Vested Members and their Beneficiaries und:r the Plan arc hereby
rostrai11ed from selling , transfening, anticipating, assigning, hypotr,ecating, or otl1crwise
disposi ng of their Retirement Benefit , ;,rospective Retirement Bc-.nefit, or any other rights or
interest under the Plan, and any auempl to anticipate, assign, pledge, or othc;rwise dispose of th:
same shall be void. Said Retirement Dcnelit, prospective Retirement Denelit Ulld rights and
interest> of said Members. Retired Members , Vested Members or Beneficiaries shall not at any
time be subject 10 the claims o f creditors or others for liabilities or torts of said Members, Retired
Members, Vested Members or Dcncficiarics, nor be liab ic to attachment , execution, or other
leghl proees.s. Notwithstru,ding the foregoing, the Retirement Board may approve payment.
A . Ass :gnmcn1s for: Chfd Support puposcs provided for in Cnl orarln Revised S~1t11les Se.c1io o1 s
14-I0-1 18{1)and 14-14-107,astheycx.istcdpriorloJuly I, 1996 ;
B. Income assignments for O1ild Support provided for :n Colorado Revised Statutes Section 14-
14-111.5;
C. Writs of garnishment that are the result cf, judgment taken for arrearages for Child Suppo:t
or for Cllild Support debt; and
D. Pay:nen!s made in compliU11ce with a properly executed and certified court order •?proving a
written ,grecmenl dividing fll,e1ircmen1 l!J2enefots between a member and U1l alternate payee
~-entered into pursuant to C:olorado Revised Statutes 14-10-113 (6j.
3-4-13-?: ll;ink.-uptcy.
If uoy Member , Retired Member, Vested Member or Beneficiary shall become bankrupt or
attempt LO anticipate , assib'll or p)eG gc any benefits unde: the Plan, then such benefits sh:tll , in th~
dis cretion of the Retirement Board, cease, and in that ev :nt tne Retirement B oard ,hall have .
authority to· cause lb~ ,;ui;e , ~r any part· thereof, 10 tie held or applied to or for the benefit of such
Membe r, hi s spouse , his children, or other dependmts . or an y of them, in meb ma:rncr and in
~uch prv pvi";i vn~ as t~,e n.ctircrr,~iit Bvu:.i. tr.uy de::: . .:-1 p;vpcr .
3-4-14: M,otlilicntiou or ([ermioation of pJ:lan.
3-4 -14 -1: Expectation .
11 is the cxpeclal 'on of the City that it will cont:nuc this Plan and the payment of its contr ihut,ons
hereunder ind efbitcl v, but contiuuan ce of the Pl:m 1$; nor assum ed as a con t.ra~tu;il ohli gati on of
the Cit y .
3 l
3-4-14-2: Amendment .
·1·hc Cil y reserves tl1 e right to alter, amend . or tcnnin:1t e th e Pinn or any part thereof 111 sue!,
mann er as it mu y determine, an<l i.u ch altcrotion , amendment or t<:rmin atbn sha l! t11k e cffcct upon
no tic e thereof fr om lhc City Lo Lhc Retircmenl Boa :d; provided that no such a li crntioi, or
a1nc·H hr .• ~111 ~hall provioc 1h,11 lht: Retircmc·1t Bendit pnytble lo ;my Ret ired Mem ber sha ll be
h:,;s th.111 tha t pro vid cU hy his Accumul:11 <'.rl C:0111r ih1111 nns or :iff~ct lh~ ncht or an y Mcm hc r 10
rec e ive ..i re fund of hi r. A1.:c umulut ccl Co ntribuli cns :md sh:,11 not directly or indirce.lly n·dnc:r. ;rn y
Me m ber 's Ac ~ru c d flunHi<♦H~. An d provided fl:rther, th~1 1 no alteration or termination of
the Ph:u or :my pa rt. !h ereof shall pcnnit any ptt11 of th e Fund !O revert to or h e rccov crnblc by the
C:ty or be us ed for or diverted to purpos es ulln.;r thau the cxclu:;ivc beuelit of Members, Hi:tir r.;J
Mcnhern, Vested Members oi Beneficiar ies under the !'I an, except such fund s, if ari y, as 111ay
n:.1na ln a t tc1mination of the Pl an aft er satisfaction of a ll liabili tie s with n:s pt:ct to Members ,
l(c Li rcd Members, Veslcd Memb ers and Benefi ciar ies unc!crthe Plan and arc du e so lely 10
erroneous ilctuari al assumptions . Further, no am cndm i.-:nt slu~ll :.:a usc th e el imination of an
opti o na l fonn of benefit nor the elimination or rcdJction of :m eid y Rl:ti rcm cnl Rcncfit that
con tinu es aflr.r ;-P.tirc mr.nt.
~-4 • 14 -3 : Approval Und cl' the lntcrnn l R<'vcnu c C:o dc .
Till: Pla II is i11t cn de:d to comp ly with the rcquircm cn ls of th r. npp licrihl c prc-,v i~ion s of lntcmul
Reve nu e Co de Secti on 40 1 (a), as nuw i11 t;ffci;t ur li crcu fl c1 ,11 11t:mk."CI, n11d nny morlifi c;ition or
am cnci111 c1lt uf the Pinn nmy be nrn ric rctro;:c l:vc, as ncr-r:ssary or approp ri ate, 10 es tabl ish ar1 U
11mi 111 ain such comp !rn :u;c.
3-4-14 -4 : lliscontiuun nee .
'Ill e C ity restrves th e right ;ii imy tim r. amt fo r :m y rca~m , sHlisfoctnry to i1 ·.o di sc r.,nti nu e
permanently a ll co11 tri bulions under th is 1'1.in S11c:1 Cisccmt inu;mcc shall he d ccm,1.:d to be ;,
co mp \e tc tcnninntion of the Pinn .
J-•1 -14-5 : Termination.
In 1hc even! of a panial or co mplel e te nniJ1ation of 1h e Piao, Lhe Accrncd l:leneli lS up to the Ja1e
of lc rminali on by the affec ted Emp loyees and the ir Be neficiaries shall he nonforl 'cilablc w1d all
affec ted funds shall he all oca led 10 affec ted Members , Retired Members, Vested Members and
Bc1w.fi c·.iari c!-0 :1 tl,e fol lo wing p~i ority hasi s of:
A. An amou11t equal lo th e Acc uni ul:itc<l Co:1trih uti ons , or ba iance thereof, which wo uld .be
pay~ble to the Mc111krs, Rc1ired Memb ers , Vested 1'✓.c1:ibcrs or Bcne !iciaric:; should de.1th
occur on tht: Ualc ur llic te1111i m1 ti o11 o f ll 1c Pim,.
B. An amo unt of the :·cmammg assets equal to a pro rata portion determ ined on th e basi s o ! th e
ra tio that th e aclu aria l reserve for his Accrued Dcncfil minus the amount in A. ab ove credited
lo him bears lo th e total of s·Jch actu arial reserves mbu, the aggregate of amo unts all ocated
und t:r A . above.
3-4-l4-6: Distribution.
When ~'le assets oflhe Trust Fund have been alloca1ed ,s indicated above, the dis :ribution may
be made ID the farm of cash or nontransferable annuity contracts as detennined by the Retirement
Board , provided that any affected funds remaining after the satisfaction of all liabilities 10
affected Members , Retired Members, Vested Members and Beneficiaries under the Piao may be
withdrawn by the Retirement Doard from LJ,c Fund and refunded to the City .
3-4-15: Reser\'ed.
3-4-16: Limitations .
3-4-16-1: Reemployment of Former Non vested Members.
If a Me:nbcr's employment terminates prior lo his becoming a Vested Member and the Member is
subsequently reemployed as an Empl oyee, such Member shall not be entitled to receive credit for
his previous Credited Service under the Plan, except as ?rovided in Subsection 3-4-4-3 hereor.
3-4-16-2: Rccmploymcut of Former Member r..
lf a former Member is reemp loyed as an Employee of the Citv on gr after January J 0 012. no
Retirement Benefit payments shall be mad e during the period of such reemployment ~
6" The EmP4>vMt;.illlnined a"e 62.before smmmencing benefits from this Plan or
ll. At the tune ~c 6mnlovee origin~llv rpsr.ti to owvids seCYises to the Citv tbs Citv and the
Emoloyec.rcasouablx an 1ici,nAt~d that the EmPlovcs w2uld not nroxide serrises to the Citv in
the.future · and the formerMswhw is tSt:mPIPxed as ar1 Emu)ovr,e ofU,e Citv no won;r than
2n..~b00Qrc:C tweotY.!120) davs ofter the date the foqper Member's smnlovment with the Citv
~
Upon the sub sequen: ve st ed termination of employmen, :-y such a Me111b:r, the Member shall be
entitled 10 receive a Retirement Benefit based on i) his Credll Serv.ce prior to toe date of his
previous termination (ex cept Credited Service lost after• Ii••(~);•,~ t ·nder Subsection
3-4-4-3 hereof, ii) his Credited Service during the period of his reen .?loyment :UJlll.i!, and iii) in
the case of a disabled Mtmber, his Credned Service while disabled. In the c;ase .,r reemployment,
of a former Member who rec eived, prior lo his reemployment, any benefit payments (whether
single sum or periodi ci with respect 10 wlllch Credited Service is ros:ored hereunder, the
Retirement Dcnefit paya ble upon his subsequent retirement shall be reduced by the Actuarial
Equivalent of such payments , other than Disability Retirement Be~.fit payments, he received
p1ier 10 his ~leAllal Re1iremoa1 Date~. unless such payment was a Sillgl<, lwnJ2 swn that
was rep aid wider Subsection 3-4-4-3 hereof. '
3-4-16-3: Alluual llcncrit and Contribution Limits .
The Plan incorporates by reference the requirements of Code Section 415 and final regulations
interpreting Code S•;ction 415, as applicable tu this goveruweulal relircmenl plan. The cos1-0f-
living increase of Code Section 4 l 5(d) shall continue to apply to increase the dollar benefit limit
of Code Section 415(b) after the Member's severance from employment. The limitation on
coa1ribu1 ions of Code Sc<:tio, 41 S(c) sholl apply 10 Member conlributior.s that are made to the
DR'JP accouot, as des cnbed in Afli<>le-.¥; Section '},<I~-Tho limitation year is the
ca!endar year.
3 3
3-4-16-4: Consolidation or· Merger.
The l'hm shall not be consolidalcd or mer2ed with, nor shall any assets or liabilities he
lram:ferrcd to an, other Plan, unlesfi the bcncftLt: p:iy~blc lo each Member if the Plan were
tenninntt::d in-,mcclintcly nftcr such nr,tion •,vould be cqunl to or greater thun the benefit~ to which
:-.uch Me111hc1 wnuld ha vt.: he1,;11 cnlitlcl: if this 1')1111 lwd hc...:11 tcn 11irml'.!<l immcd :atcly before !\UC:1
,,c~ion.
3-4-17: Miscdl:1nc1111s 1•ro"isions
1-4-17-1: IUghts of Mcmhcrs.
Euch mM,cmbcr shal I be advised of the general provisions of lhc i,flan and upon wrilten request
adtlrnssc<l lo lhc Retirement Board shall be furnished with any information rcqccslerl regarding
his status, righ(s and privilege., under the i,flan. Neither the e.stahli shmc:111 of the 1•flan, the
grnming of a FR_c:Lirement tlllenefil, nor any action of the City or the Retirement IJo.,r<l ~h:dl he
held or construed to confer upon any pcnmn c1ny right to coir.inuc c1n plnymcnl, nor, upon
dbmi~sa l, a11 y right or i11te::resl in the Trnst Fund other than as herein provided.
3-4-17-2: Limilntit111 or Liabilit)•.
No m;bicmh cr shall haw'! :rny right to t:Rctircmcnt 0J1cnefits uncle!' the ~J!la11, cxcc:pt such rig:htr.,
if any, at may accrue to him upon hi!l rctircn,cnt from the scivice of the Ci :y under the pro"is ions
of the ~fla:1 while it is in effect. All such Lcncfit:-; ,.ire payable:: ~uldy l1ut of the Trust Fund and in
no event shal: the City, the Trustee, or the Re:irc-mcnt Bourd memhcrs be liabls lhcrefor. Neither
the cstabltslune:it of lhis !'!!Ian, nor any nmcndmcnt or modificalion lhcrruf, nor failure of the
City to provide sufficient contribulions lo tl1c same shall be construed as giving to any Member,
or nther pc:-son , any legal 0r r.qnitahle righl ag:,insl 1hr. City, or 1111y officer or director :hereof, or
against Lhe Retircrnenl Board. or any member thereof.
3-4-17-3: Direct Rollovers.
A. General. This section applies 10 distributions made on or after Jar:uary I, 1993.
Nolwith~tanding any provision nf the ~J!hm 10 the c.ontrary tJmt would otherwise limit a
dii-lrihutcc'$: c;ection under this section, a distributee may elect, at the time and in the mnnner ·
prc,.crihcd hy th: 1>!2onrd, lo hl,ve uny ponion of an eligible rollover diswibutiuu whi ch
exceeds $200.00 paid directly 10 an eligible retirement plar. specified by the dis1ribu1ee in a
direct rollover. If a distributcc's direct roll over dislrihution is less than $500 .00, the
distributec may 01tly dee! to direct rollover !00 percent of the eligible rollover distribution.
1:1. Definitions :
I. Eligible Rollover Dislrlbwion. An eligible rollover <listnbntion ts any ctstnb111ion of all
or any por!.i.on .()f the ~~l3J1ce to tpe credit of the .distributec, except that an eligible
rollover distribution docs oat include: any distribution that is one of a series of
subs1an1ially equal periodic payments (not less frequently th..n annually) made for lhe
life (or life expectancy) of the distribu•oe or the joint lives (or joint life expectancies) of
the dist.dbutce and the distrioutce's designated bcncfi.;iary, or .fur a specified period of
ten ( 10) yeacs or more; an)' distribution to the exlenl such distribution is required under
Code Section 40J(a)(9); and the ponion of any distribution that is not includable in gro ss
34
income (detennined without regard to the exclusion ro, net unrealized appreciation with
resp,;:1 to employer securities). For dis1ributions made after December 31, 2007, a
portion of a distribution shall not fail to be an elig:ble rollover distribution merely
because the portion consists of after-tax Employee contributions wh ich are not includiblc
in gross income . However, such portion may be transferred only to an iudividual
retirement account or annuity described in Section 408(a) or (b) of the Code, or in a
direct lmSlee-10-trustee transfer 10 a qua\ified trusl described in Section 401 (a) ofthc
Code which is exempt from tax under Section 50 I (a) of the Code or to an annuity
wutrucl described in Section 403(b) of the Code, provided such trust or contract
provides for separate accounting for amounts so 1ransferred (and eaming., thereon)
including separate accounting for the portion of such distribution which is includible in
gross income and the pnninn of such cli~tribution which is not !.O inclu<lible .
2. Eligible Retir,:meru Plar1 . An digilJ\c rcti1emc11t pia.u is an individu.:1I ri:;ti.nmu;m account
described in Code Section 408(a), an individual retirement annuity described in Code
Section 408(b), and annuity plan described in Code Section 403(a), or a ~ualilicd trus t
described in Code Section 40 I (a), that accepts th, disrribnt,r.'s ,ligible rollover
distribution . However, in th e case of an eligible rollover distribution to the surviving
s.pouse, an eligible retirement plan is an indiv idual retiremcm accollDt or individual
retirement annuity . Effective January I, 2002, an eligible retirement plan shall also mean
an aJ1Duity contract described in Code Section 403(b) and an eligible plan under Code
Section 457(b) which is maic:ained by a state, pol:tical subdivision of a state, or agency
or instrumentality of a state or political subdivision of a state and which agrees to
separately account for amounts transferred into such plan from this Plan . The definition
of eli~.;ble retirement plan shall also apply in the case of a distribution to a surviving
sp ouse, or to a spo·Jse or fonncr spocse who is the alternate payee under a qualified
domestic relation order, as defined in Code Sectioc 414(p). Effective January 1, 2008,
an eligible retirrment plan shall also mean a Roth IRA described in Code Section
408A(b), subject to an } applicable limits described in Code Section 408A(c).
3. Disrributee . A distributee includes •~ employee or former employee . In addition, the
cmployce1s or fonncr cmplcycc's surtiving spouse nnd the employee's or former
empl oyee's spouse or former spouse who is the alternate payee under a qualified
domestic relations order, as defined in Code Section 4 l4(p), arc distributees with regard
to the interest of the spnrn:e or fonner '-POl.l.~e
4. Dirt:ct Ru/lover . A din.:t.:t 1 'J lluvcr is a payment by t.l1t: ttl!lw1 lo om: digiLle ,clu cment
plan specified by Lie disu 1butce.
5. Waiver of 30-. . No rice/or Cashout s of $5,000.00 ($1,J OO.OO Prior lo January I , I 998)
or l ess . If.a An eljgible rollover distribution ~iaAs 4G I (a)91 l ·
aRd ~ 17 ee Ael appl), SYeb aistrieutieA may commence les s than thirty (30) days after
U1 c uUlicc; rcquirc<l umier lft:,QSUF)' reg\Jia1ioe ~ Secri on l .<I 1 i ta) i j tr ·1. ~ is
given . provided that :
a. The Board clearly informs the mll:l.ember that the etMe:nber has a right to a period of
at least thirty (30) days after rec.eising the notice 10 consider ,he decision of whether
or not to elec t a djrect rnUovcr aistribu1ie• (a,.d, if •~-•le, a paR1ewlar
tiistrieutieR ap1i e•l. and
3 5
b . The H\M,cmber, after rcc:iving the notice, 1:1ffin11atively elects a di stribution .
C. Di.,·tl'ibution to IRA of Non-Spouse Bcn~ficiary . A Member's non-spouse Beneficiary may
elect to hav e any porti on of an elig ible Plan dist ribution pni d in a direct t111stec-lo -tru stce
tran s fe r to an indi vicuu l retirement account or annuity de.scrib ed in SccLH)n 40 l(c)(8)(1.1)fi)
or (ii) of the Code lhnt is es tablished to receive the !'I an distri butio n on bcha'f of th e
Bcndidnry . For purpo :::es of lhis S.1h :;ccti on C, a lms1 1m im11incd for th e be nefit of Ollf ~ ( 1)
<>r n1urc dc :;ign ;:t.cd bc11cficiurics 1n;1 y be the Beneficiary to the extent provi ded in rull.!s
prcsc.:ribcd by th e S.:::rct.1:-y ofTrcasury. If the Member die s uficr tbc Memb er's rcquirccl
begi nning date as dd im::d in Section 3-4-6-5 !1c:-c of, th e: rcquir:d minimum distribution in the
year of death may not be trn nsfcrrc:l nccordi11g to this Subsection 3-4-17-3C. The
rcqm rcnwnrn of Co de ~cction 4U2(c)( 11) apply to distributions under lhi s Subsec tion .J.t,.) 7-
1C.
1-4-18: Moocy Purcbasc Pino Choice and Tr>nsfcr of Funds.
3-4 ~18 -J : Conversion Option for Memhcn Oes cril>ed in Sect ion 3•4•3-2K
E.id 1 ~1l;Li vc emp loyee who is a n1Mc1nbcr includi ng an y cmploycc curr t.:n ll y receiving hcndits
un de r the City's 1ong-tcr:n dis ab ility coI1trnct, and e:1.ch ~.Y,cs tt:t l 1+1,Mc111bcr shal l have Lh ::: option
of co nverting fro,n membe rshi p in this 13j!lan lo mcmbcrsl up in th e money purchase plnn . "'he
application lo convert mus: be made in wciling, on or before Jnly 15, 20U I . Furth ermore , the
mMcmbcr must complete !he wai vcr and rel eas e document s as spccifid in Section 3-4-18 -2.
3-4-18-'2: \VnivP.r :inti Rr.l r.ust~ Rcr111irl!mc11t.
E;1ch cl igib lc mif:d.cmbe r untlc.:r Se::c ti on 3-'1 -3-2B or 3-'1 -1 S-1, who wb;her.10 c1.crci :,c :he o:.ltion
u!' co nvening mcn1bership to th e mnnc y purch ase plan must sign u wuivcr und rclcusc wi tl·,in the
Lm1cfrnn1cs specified by th e BoHr<i un<l in a iunn accepli1bl: lu t:1t: Bmml , wd ivi11g all righls tu a
defined benefi t pension from this ~flan and releas in g th ~ Ci ly and Board from any liabili1y to the
r.,trlcmber andlor his or her efleneliciaries for such a deiined benelil pensi o n or any claim based
on the conversion lo the money purchase plan . Said election shall be irrevocable unless the
ej;mployee changes status from an el:xcmpl eJlmployee lo a non-exempt employee, in wh ich
c.1se such e).lmployee may el,c.1 wilhin sixty (60) days ofthr. change in stntus ln aeain hecOJ11c"
m/~c:nbcr of this ~£Ian . SlID.l iln eleclion 19 pyaio become.a,Mr:rnbsr of thi!; Plun i.s ncrmitte.d
m1lx.LU.Lu;,,.wg;~~ion..nL1n,,n;.auir cs.tAA--+~t;me Member Contribution a<i Section i..4 ..
~~.!!!!-~s for tWsJ!lan. In the event m, e~m ployce rejoins th:s pl!la n. Sue ~e a eho~ge ;R slatus
aft~~em the lf:msfur dc le , <>!.<•·eaited s ,ljei,•i se shell ABl ee r oslured fer saoit
,£mrle~-:me-se~~leyee.;llftll-nel-be--,oa5tt,4-<Hllil he er she eamG-fi,...,.~
erecli~-• l"'tU8 11l la hi s er hor ree1Nf)'-ffit~~lh£,ur!u!isi(2ns ufJ;ecJiop 3-4-4-
~bal l.d.<;L<;lllilJ~y ,ether lb• Employee's prjor Credited Seryicc sh 2LU.e restored Euim
~•.d Jo \h e PtPtteY pucch;isCJl)llll.Shall not be tians f~ack.JA thi s Pli!!!,
1-4-IH-J: Trousfcr of Funds.
Each cl igible m,1)1ember under Seo ti on 3-4-3 -2B or 3-4-18-1, who chooses tu exerci se lh c op ti on
to conv e rt his or her membership to th e money purchas e plan shall have a dctermi1:able amount
transfeJT,d to the money purchase plan . The amounl transferred on behal f of each such
m~embcr is the actuarial equivalent present \'alue (whi ch shall include an adjustmer.t if the
ml::l.emhc r qualifies for s~ccial efarly FE,c!irement or ,B,egclar efarly Fll,etirement as of the date
1hc ™Member changes sla llls fo r a mldember described in Sectio n 3-4-3-2B and is J uly 30, 2001,
36
for a mJl:lemher deS< riued u, Section 3-4-18-1), as of the date of transfer oftbc ffiMember's
aAccrued el;!eneftt . For purposes of this Section 3-4-18-3, the term "actuarial equivalent present
value" shall be based on an interest rate assumption of seven and one-hnlf percent (7 .5%) and L1c
mortality assumptioo of a uni ,c• rate that is fift y percen: (50%) male, fift y percent (50 %) female,
taken from the 1994 grou? annuity monality table (except that the 1983 group annuity mortality
table applies fat transfers before January I, 2012). The date oi tramfer of the mJl:lembcr's
ae,ccmed 1,Ijenefit shall be as soon as practicable after the election date fot a mJl:lember
des cri bed in Section 3-4-3-28, and August 31, 2001, or as soon as practicable thereafter , for a
mMembcr J escii ucd iu Secrion 3-6-J 8-1 .
Section 2. Safety Clauses . The City Council hereby finds, determines , ond declares that this
Ordinance is pro mulgated under the general polic e pow,r nf th e Cit y nf F 1glewoo rl, that it is
promulgated forthc health, safety, and we1farc of the public, and that thi s Ordi11ancc is necessary
for '.he preservat ;on of health and safe:y and for the pro tecti on of public con :,enience and
welfare . Th e Cit) Council funher determines that the Ordi111nce bears a rational relation to the
proper legi sla 11 ve objcci so u1;ht to be obt&incd .
Section 3. Sevcrabilitv. If any clause, sentence, paragraph, o, pan of this t )rdinan ce or the
application thereof Iv any person or cilcwnstan:es shall for any reason be adjudged by a court of
competent _iurisdiction invalid, such judgment shall not affect, imp:1ir or im·alirlate th e rnmainder
of this Ordinance or 11 applicati on to other persons or circurr.stanccs .
~..i Incons istent O;<linances . All other Ordinance ; or ponions thereof inconsist ent or
cor.flicting with this Ordinance or any ponion hereof ar,· hereb y repealed to the extent of such
inconsistency or conilict.
Section 5. Effect of repeal or modification . The repeal or mod 1ficat1 on of any pmvision of
the Code of the City of Eoelewood hy lhi s Ordinance shall nnt release, extinguish, alter, modify,
or change in whole or in part any penalty , forfe iture, or 'iahility, either civil or criminal, which
shall hav e been incurred under such provision, and each pro vision shall be treated and held as
still rema inini: in force fer the purposes of s usL1ining any and all proper actions, suits ,
proceedings . and prosecutions for the enforcement ofth~ penalty, fotfeiture, or liability, as well
as for the purpose of sustainir.g any judgment , decree , or orcicr which can or may be rendered ,
entered, or made in such action.s, suits. proceedings, or prosecuti ons .
Section 6. Penalty. The P,nalty Prov is1c>n of Sec•ion 1..:.1 r-Mr. shall appl y to each and
every viola11on of this Ordinance . ·
Introduced, read in full , and pa,sed on first reading on the I 8th day of June , 2012 .
Published by Title as a 'ill for an Ordinance in tr' ity's officia l new spaper on the 22nd day o (
.lun e, 20 12.
Published as a Bill for an Ordinanc e on the City's offic ial web site beginning on the 20th da y of
June , 20 i l for lhiny (30) day,.
Randy P. PeM , Mayor
3 7
Read by titl e 2nd passed on final readini: on th e 2nd day of Jul y, 2012 .
Publi shed by title in th e City's official newsp>p er as Ordinan ce No .,}}_, Se rie.s of20 12,
on lh c 6t h day o f July, 2012.
Pu bli shed by tll)c 0 11 the Cit y's ofncia l web site Ucgi1 :11ini; on the 3rd tlny o :
.lui )'. '.!0 12 for th1:-t y (J O) da y,:.
I, I .o ucri-,.,ia A. Elli s. C i1 y Cler k o flhc Cil y of F.n glcwood , Colorado , here ccr1ify thal 1h c
above and fprc goi ng is 22:11e C<IIJ\ o f lhc Ordi11 a1,c,i 11as:..c:cl 0 11 1inal rc;id u _ an t pub lis hed by
titk as Ordinanc e No .4 . Ser ies of 20 12.
38
COUNCIL COMMUNICATION
Date : Agenda Item: Subject:
1,,ne 18 2012 9 a iii B111 tor an Ordinance adopting
amendments to the Citv of
Engl ewood N on[mergency
Retir em ent Pl an (NERP ;
Document
Initiated By:
City of Englewood , finance and Administrative
I Staff Source :
Frank Grygl ewicz, Di rector
SP.f\-irPc. ni:m.1rtmP.nl
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
Th e City Council and sta ff dis cusse d the cha nges in corporated in th e attached bill for an ordinan ce
at th e Jun e 4, 201 2 Stud\• Sess,on .
RECOMMENDED ACTION
Stafi rec o mmends City Coun cil approve the attached bill for an ordinance making necessa ry
chang~s to th e N ERP Plan D ocu ment.
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
Th e prima ry purpose of th e alla ched bill for an ordinance is to inco rporate proposed arn end~1en ts
to th e NERP document that w ill add the thre e percent employee contribu ti on that was negotiated
w ith the Eng iewnod F.mplnye e; Association (EEA) to help o ffs et th e cost of providing pen sio n
ben eiits and equ,1li ze employee contri butions with the N o nEmergency Employees Money Purchase
Plan INEMP). The amend:nents are not intended to change retiree benefits provided prior to the
efiectiv e date of th e amer,dments.
The atta ched rn e;norandu111 (present ed to Co un ci l o n Ju ne 4 , 20 12) summarizes th e various
requi re d changes not 011 11• to imple ment the employee contributi on but also 111cludes lang uage
cle an u p, capitalizat ion consistency , and incorporates Interna l Revenue See1ice requirement s to
preserve the qualified slat es of the Pl an.
FINANCIAL IMPACT
Th " imrl~nv?nt.l ti(,n !'11.? !hr ~? ;1 ~•c!?n! emp!ay ee cn r.t~!h~tior. !".hr:::!rl rer!11~e :h P im~,1 ::: r.f !:;r,rling
the NERP over the lon g-term as well as equal ize the employee contribution with th e N onE rn er ge ncy
Emp lu)'ees M o 11 ey Pur chase (NEM P) Plan .
LIST OF ATTACHMENTS
Memorandum Dated May 30. 20 12
Proposed Bill fo, Ordinan ce.
Memorandum
Ta: Mayor Rand}' Penn and City C ounc il
Through: Gary Sea:s , City ManagAr
City of Englewood
Department of
Finance and
Administrative
Services
From: Frank Gryglewicz , Director of Finance and Admin istrat ive Services
Date: May 30, 2012
Re: Informat ion for the June 4, 2012 Study Session • NonEmergency Employees Reli"emenl Plan (NEAP)
Ame1dmenls
The primary purpose of the proposej amendments lo the NER? is to add the three percent emplovee contr ioution that
was negot,ated wrth the Englewood Employees Association (EEA) to help offset lne cost of prov idirg pension benefits
and equalize employee cor.~ibutions with the NonEmcrgcncy Employees Money Purchase Plan (NEMP). The
amendments are not inlenoed to change benefits provided price lo the effective dale of the amendments . If Council
agrees , a bill for an ordinance with the proposed changes will be presented for Councl's considerati on at the Jun• 18,
2012 Regular Meeting
1 . In co njunction with add ing the employee contribution , addilional requirements include :
a . Revising the Plan document ett ect ,ve Decemrer 31 . 2012 (this dale coincides with payroll processing).
b. A provis ion lo refund Accumulated Co r.:,ioulions (w,lh interest) for terminated non-vested Members .
c. /\ prov ision to refund Accumulated Contributions in excess of total benef its pa id to Re tirees,
Beneficiaries nr alternate payees . This provides that the minimum Plan benefits paid will always be al
least Iha amount of the Accumu lated Conlr1bu l1 ons .
d . Guidelines for the repayment of Accumulated Contributions for rehired employees that may be eligible
and choose to participate in Iha NERP . Repayment must be by payroll deduction or a rollover from a
qualified plan within twelve months of rehire . n.e repayment reslricl ions are necessary for the
contribul ions 10 remain pre ~tax .
e. Language to comp ly with IRS restrict ions and set customary prac tices for the dislribut on of
Accumu lated Contribut ion refunds of S 1,000 to $5,000 by ei\her a ta xabl e dislribution or rollov ,r lo a
quali fied plan .
2 . Cla ri fica tion of the rules related lo the re sto ration of prior serv ice for an emp loyee wi th a brea k in service .
3 . Update the requ ired federal guidelines for qualifying military service . These guidelines comply with the
Uniformed Service s Emµloymenl and Reemµluyment Riyhts Act (USERRA) ,.,yulated by th,, fede ·a\
govern me nt . These changes will insu re Plan compl iance .
4 . Clar 1ii ca1 ion oi 1ne 1erm "Employee" to clar ity wno is e1 igio1e lor th e NERP .
5 . Changes to comply with federal restrictions on Plan ma ndatory dlstrla utlons of DROP t,.,11.,fits to minirn i,.,
potent ial undue tax burdens on DROP participants . The Internal Revenue Service (IRS) prohibits rnan:latory
distri butions .
o . A re quest to cle an-up language tha t provides Im drstnbutrons to be made less frequent than monthly. An
ex arnr,1 e is if a retiree wer e to reo~iv e ben efil p;:1ym ents of ICS !i lh an $100 r P.r month , lhA mtiree could request
the bene fi t be paid quart e-l y inst ead of receiving a lu mp sum pa yment. Th is places an admin islrat,ve burden
requ,nng ad0111onal programming changes for the few :etirees requesllag periodic pa yments w ho a rc """,.,,
amount less lhan $ 100 per month.
Mult ipl e changes to provide cl~ri ty ;,nd consistency throughout lhe Plan docume,1.
8. Concis tont c.:ip :to lizotion or te rms with 3 definition under the Plan .
9. The IRS prov itJtts btmencial la x treatment for .. qualified " re tirem en t plans . To J:reS>e rve !h is benefieicl tnx
tre atment, plans must comply with n umero us IRS req uireme nts, mc iud,ng lr.suri ng reti rem en t plans are truly
inte nded lo provide ben efits for retired employees. Th ese rcslriclions include not all owing ll1e reemployment of
a rell rnP. to rc r.t'!1 vr. hn nP.fits un le ss th e r.m1ll oyee rr.a sor.ably had no int ent ion of re turn in() lo wo rk , or is ove r 62
ycor:; of age wh en benefi t:; co mm enced, ::a nd sepa,alas servico for at least 120 da ys .