HomeMy WebLinkAbout2012 Resolution No. 080RESOLUTION NO . ..Ft2.
SERlES OF 20 I 2
A RESOLUTION REQUESTING COVERAGE UNDER THE FPPA DEFINED BENEFIT
SYSTEM ADMINISTERED BY THE FIRE AND POLICE PENSION ASSOCIATION FOR
NEW POLICE OFFICERS FOR THE CITY OF El\GLEWOOD AND PROVIDING ACTIVE
POLICE OFFICERS THE OPTION TO I' ARTICIPA TE IN TiiE FIRE AND POLICE
ASSOCIATION DEFINED BENEFIT SYSTEM .
WHEREAS, pursuant to Colorado Revised Statutes, Jl-31-1101 and 31-31-1103 the C ity of
Englewood may elect to cover all newly hired Police Officers wider the FPPA Defined Benefit
System administered by the Fire and Police Pension Associat io n (FPPA) in lieu ofcoverai:e
under the ICMA Retirement Corporation Money Purchase Plan; and
WHEREAS, after, nsideration of this matter the Cit y of Englewood has determined to have
all newly hired Police t :'T,cers mee ting the deliuitiou of Member under Colorado Re vised
Statutes 31 -31-102 panicipate i11 the Statewide Defined Benefit Plan beg inning on the Effective
Date for New Hires, as defined herein; and
WHEREAS, pursuant to Colorado Revised Statutes 31-31-1101(3 .S)and 3 l-31-1103(1)(c)(5),
all current members of the ICMA Retirement Corporation Money Purchase Plan may individually
elect to panicipate in the FPPA Defined Benefit System or may remain in the ICMA Retirement
Corporati on Money Purchase Plan ; and
WHEREAS, as a result of Englewood Police Benefit Ass ociation (EPBA) contract
negotiations the City of Englewood City Council detennined to take the following action .
NOW , THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF TilE CITY OF
ENGLEWOOD, COLORADO, AS FOLLOWS:
Section I. The City of Englewood hereby requests L~at the Effective Date of coverage be May
20, 2013 .
Secti on 2. The Member and Employer contribution rate 10 the FPPA Define.cl Renefit System
for Members who arc active in the Statewide Hybrid Plan and who selected either the Defined
Benefit Co mponent and Money Purchase Component or the Mon ey Purchase Component only on
the May 20 , 2013 will be 20% of base salai,• and shall be split I 0% member and 10% employer.
~c_c\io.o.1 . The Employer elects to offer ll,e Members who are active prior to the Effective
Date for New Hires the option ofpanicipating in the Statewide Defined Benefit Plan at a
contribution ra1c "f?O% ofha.se salary that shall be split 10% member and 10% employer.
Section 4. The Cit y of Englewo od elects to cover all Members hired on or after May 20, 20 13 ,
such earlier date after the filing of the Certification of Compliance designated by the Employer
(!cnown herein as the Effective Date for New Hires), under the Statewide Defined Bcnefil Plan at
a contribution rate of 16% of base salary that shall be split 8% Employer and 8% Member.
Sec1jon 5. The Employer intends to transfer some or all of the current active Members
accoulll balances to FPPA to the Money Purchase Component of the Statewide Hybrid Plan . The
Employ er does not intend to transfer retired Members ' account hnl:mccs to the Money Purr.hos e
Component of the Statewide Hybrid Plan . Th e Employer riocs not i111cnd to transfer th e 100%
vcste<l ln:1ctivc: Members' accou nt ba !nnce1, In 1hr. Mniley l>urclrnse Component of tl1c S1a1 cwi<lc
Hybrid !'Ian .
Sec1ip11 6 . The Memhcr·r. employer uccoi :nts sh:ill be 100% vested upm1 tran:,;fcr tu the FPl 1 A
Defined Dcncfil System.
Scclign i . The Loe;1l Money Purchase Plan provides for loans 10 Pl an members. Loans 10
l'lan 111e1111J •crs sha ll he transferred to the Money Purchase Component as part of the transfer of
assets of the Local Money Pwchase l'lan. subject to appro val and acceptance by FPP A. No new
loan ; wi ll be allowed from December 31, 201 2 to May 20 , 2013 .
Sect ion 8. The Employer acknowledges that the election for c.overage under the Fl'l'A
l)elincd Benefit System is irrevocable once the li nal Ccrtificati, .. , of Comp liance is folerl by 1he
cmp'.oyer and approved by FPl'A .
SccJjon 9. Part-lime police officers, hired hy th e City of Englcwo<>d ofter the Effcct:vc Date
shall not participate in the Plan . P:in.'.imc po \ke offi cers emp loyed by the City of Englewood on
the Effecti ve Date nmy not ind ividually elect to pnrti cipulc in the Fl'PA Delincd 13cn-,fot Syslcm.
Secti on 10 . In addition to this Resolution, lhe City of Englewood understands thfl i it mu st
make th e ccrtiftct.tio11s co11wincd in the "Fom, ofCcnification of Compliance" il~u,chcd hereto as
EAl,ibi t A and which must be completed as the final Certificatioa ofComplianc~ h.v the employer.
Entry into the FPPA Defined Benefit Sy stem ts not complete aud fi,,al until the Certification is
made a,id filed Wtth Fl'!' A.
Section 11. D!SCLOSURE STATEMENT -'Jbc City of Englewood. iu conjunction with
FPPA , will prepare a disclosure stmrment wh ich com pares th e main pmvisioni; of the Locui
Mon ey Purc~ase Plan and the Pian or Plan s offered nnde r the Fl'PA Defined Benefit System, as
applicable. Said disclosure statement will be submillcd 10 FPPA for approYal . 1be Employer
will i;uhmit the :tpproved disclosure statement to all eligible members prior to th'= dcndl inc for
making individual elections .
~-MEM HER SELECTION -In co11ju11ctiun with FPl'A, the City of Englewood
shall impl:mc111 u pwcedurc for making individual selections of Plan options for all eligible
111c111bc1s pursuant to the ru les and procedures established by Fl'l'A.
·1bc City of Eng lewoocl und erstands that if the ccni!ication of compliance for coYera~e under
the l·l'PA Defined Benefit System is accepted, nil future members of :he Police Department who
would have been covered under the Local Money Pwchase Plan . will be covered under th e
Statewide Defined Benefit Plan of the FPPA Defined Benefit System .
Thal this resolu1ion ofin1en1 shall be cert ified and transmillcd to FPPA for processing in
a~cordance wilh all applicable law and regula1ions as part of the applica1ion process.
ADOPTED AND AP!'ROVED this 171'1 day of Sep1embcr, 2012 .
ATTEST :
Penn , Mayor
1, Loucrishia A. Ellis , City Clerk fo , ,he Cu ;r , f En glcwood, Colorado, hereby certify 1hc
above is a true copy of Rcsolu1ion No . _l?Q, Series of 2012 .
fahibit A
In order to comply with Colorado Revised Statutes 31-31-1101 it is necessary for City of Englewood
to certify the following to the FPPA Board of Directors:
a) the City of Englewood police Depa:tment 's Local Money P rchase Plan meets the qualificatiJn
requirements of the Federal "!n tcrnal Revenue Code of 1986" that are applicable to governmental
plans ; ·
b) by separate or.lion •:.:ity of Englewood has adopted a Resolution to panially terminate
.. ·-participation in the L, 1c11 l.M or,ey.Furchase.P.lan .in.acc.or.da_pcc;.with.the t~nns of that plan;
c) the Resolution partially terminating participation does not adverse ly affect the qll'1 1ified status of
the Lo cal Money Purchase Plan ;
d) the rights of the members in the I. oca l Money Purchase Plan who were affecte d by the partial
termination of the Locnl Money P:,rchase Plan to benefits accrued to t~e date of termination are
non-forfeitable ;
e) active Memb ers in the Local Money Purchase Plan who have so elected (the Transferred
Members). a; ofth · r.:!Tectiv c Date shall become Mem_bers in the FPPA Defi ned Benefit System ;
f) the Empt c:;;er --. •II tt-ans fer or caused :o be transferred to the FPPA Defined Benefit System all
assets of the L 1c..i Money Pur~hase Plan that arc attributable to the accrued benefits of the
Transferred Members, pursuant 10 the frocedurc established by the. City retirement administration ;
g) all Employer and emplC1yee contribution ~ required to be made to the Local Money Purchase Plan as
off , dote of the partial termination have been made;
h) Transferred Members in the Local Money Purchase Plan sha ll not incur a reduction in their account
balances in their Local Money Purchase Plan, determined as of the Effective Date , as a result of
their transfer to the FPPA Defined Benefit System . For vesting purposes with rcgarJ to the Local
Money Purchase Plan account balances and with regard to the MP component of the FPPA Defined
Benefit Sysu:m, yeurs of service in the Local Mone)' Purchase Plan shall be combined with Years
of Service in the MP Component of the FPPA Defin ed Benefit System. For vesting purpose~ with
regard to the DB component of the FPPA IJefined Benefit System, Years of Service Credit shall be
based upon service credit either earned or purchased while in the FPPA Defined Benefit System;
and
i) The Employer agrees to participate in the FPP A Defined Benefit Sys1ern and to be bound by the
terms of the FPPA Defined Benefit System and the decisions and actions of the Board with respect
to the FPPA J)efin•" Benefit System .
j) All Members hired on or after May 20, 2013, the Effective Date for New Hires, shall part icipate in
the FPPA Defined Benefit System, as previously determined by th .• Employer
k) There are no outstanding lmns, liens, assignments, court order including dorr,estic relationship
orders, or other types of encumbrances or an y nature against any funds transferred to the Statewide
Defined Benefit Sys tem by the Tru stee of the local money purchase plan . except those loans to plan
members as described on Exhib it A. The employer will notify FPPA al the time of transfer of any
pending domestic relationship orders.
COUNCIL COMMUNICATION
Date Agenda Item Subject
Septerr.ber 17, 2012 A rP.~olu tin n prnviciing Pnlic:P. Offic.P.r c;
11 CV 10 either remain in th e ICMA-RC
Money Purchase Plan or to enter the
Fi re and Police Pension Association
Sta tewide Defined Benefit Plan. All
fu ture Poiice Officers wrll en ter the
Fire and Police Pension Associati on
~tatewide Defined BenPfit P,,;r
Initiated By I Staff Source
Fin ance an d Administrativ e Services Dep artm en t I Frank Gr\'l?l cwicz Qire c1or
COUNCIL GOAL ANO rREVIOUS COUNCIL ACTION
The City Counci l an d staff discussed the cha nge s as part uf labor nt::gulidtiun) ,'1 .i I h :eLutive Stu t..ly St::»~ion
held previously this ye ar.
RECOMMENDED ACTION
The Department of Finance and Administrative Service reco mm ends the City Council approve the attached
i11u11-binding) re,oluti on providing that active police officers w ill be permitted to change from the ICMA-
Retirement Corporation (ICMA-RC) Money Purchase Plan to the Fire and Police Pension Association (FP PA)
and the ICMA-RC Money Purchase Plan fo r Po lr ce wi ll close to new participants as c,f May 20 13. Exis ti ng
employees ma y elect to remain in the ICMA-RC Money Purchas e Pla n.
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
Colora do Rev 'sed Sta tutes, 31 -3 1-1101 and 31-31 -i 103 provide th e City of En glewood ma y elec t to cover
all newiy hire d Pol ice Officers under the FPPA Defined Benefit Sys tem adminis:ered by the FPl-'A in lieu of
covera ge under the ICMA-RC Money Purchase Plan .
D uring Engl ewood Police Ben nfit A ssocia tion IEPBA) contract negotiations it was d eterm in ed 1ha1 all newly
hired Police Oflicers shall parh cipale in the FPPA Sla tewide Defined Benefit Plan begin ning~• 0 r 13 fo r
New Hires . All current members o( the ICMA Rt<iremeri l Corpurat iu11 Mu11ey Pur ch.,e Pla n r.
individually elect lo participate in the FPPA D efi ned Ben efit Sys tem or may remain in 1he IC M/, i--etirement
Corporat ion Money Pur cha,e Plan .
Th e contribution lev els for current poli ce cv.,icers will remain at te n percent emp loyer and len percent
empl >yee for active employees . Th e contribution levels for new police officers starting after th e effectiv e
dale will be eight percent employer and eight percent employee. Contribution levels are set during
contract negotiations.
FINANCIAL IMPACT
The Cily's General Fund will reali1.e some sav ings fr om trade-offs n ego tia l e<l w1Ih ihe t 11gl ew ood Pol,ce
B ene fil s As,ociaIion ea rli er lhis 1•ea r. AddiIional savi:lgs will be real ,1.erl in Ih e future ,1s lhe cos t of
providing p ensi on benefits for new employees w ill b e re duced (th e e111ployer conIri bu11on ral e is reduced
by two percent fo r new e1111>loyees ).
I.ISTOF ATTA CHMFNTS
Proposed (non ·bi ndi111~) re so lu tion