HomeMy WebLinkAbout2012 Resolution No. 088RES OLUTI ON NO . Jg'
SERIES OF 2012
A RESOLUT ION ADO PTIN G AMEND M ENTS TO THE crry OF EI\G Ll:.WOOD
FIREF IGHTERS PENSION PLAN OOCUMEl\T.
WMEREA S, the Engl ewood Ci ly Cou nc il adople d an amcnderl Cily of F.n glt:wood Firefighlers
Pen sion Plan Document wi th the passage of Ord inance No. 46, 1999; and
WHEREAS, by the pa ssage of C.B . 62, Series of 20 12, th e Fircfigh1ers' Pension Fund , Title 3,
Chapter 6, Sectio n I , Subscc:ion C, of the Englewood Municipa l Code Slalcs : "The Pension fuud
a nd Pcnsin n Plan shall be admini stered by th e Plan documen t adopted by Cit ; Counc il rcso lulion.
C ily Co unci l may amend the Pen sion Fund and Pension Pia ,IS required by the Board of Trustees."
WHEREAS, th e City of Eng lewood Firefi ghter s Pension Plan Dvcurnent has been am en ded
fro m time to time; and
IVHER.EAS , th e passage of this Kcsolut 1on does not substantially cha nge tl,e cu 11 cn1 le vel of
pension benefit s for the En glewood Fi refighters Pen sion Pl an prticipants, and
WHEREAS , the pa ssage of rlu s Rcsol uri nn docs make changes requ ired by th e Int ernal Revenue
Servi ce (IRS ) so the Plan Doc um ent complies with standa rds neces sary for the IRS Lei ter of
Detcrm in.ati un.
NOW, THE!lli l'Ol<!::, BE IT RESOLV ED BY TH E CITY COUNC IL Of Tiffi CIT Y m
ENGLEWOOD, COL' )RJ\DO, AS FOLLO WS :
l!rr.tinn I The Crty Council of the Cit y o f Englew oo d, Colorado hereby authori zes amendi ng
the Ci ty of Eng lewood Fire figh tt'l'S Pension Plan Document Miele I, Sect ion 2(b)(2), effective
December 31 , 2002, ns required by the IR S to read as fo llows :
l2) filf«tivc Decembcr.J.L.2002 , lhe mooaHwabl c used \o,,,pdilw.umx bencfit w
limimioo under Code sectjo n 4 I ,lblf 2}IB}.1.Cl,or Wl jsJbe_tab lc premilwl
by ReY. Ru l 2001-ji2 . Sol el)' fer pijfllBSes of Ntiale XI lmeof, all-itfltHtl\,,f
Jru~~ mertality ossumptia e fer aal aulotien ~
tkat 1s ~ftr ~•••••11(W%)-~iereem (.~Q%) f..,..Je , te hen fiorn4lte
l-98-¼rouJ>-A,,t~~
Sec ti on 2. The City Coun c il uf thi:; Cily of Englewo od , Co lorndo he:-eb y :1uthorizcs amending
tb c City of Englewood Fire fighters Pension Plan Doc ument Article XI , Section I and 2, effective
January I , 2002, (or as ot herwise indica ted), as rcqutred by th e !RS to read as follows :
ART IC"I .F. XI
Annua l B<-n cfit an<l Cu nli ,bution Limirs ~e.lanuary~
Scct1on l Annua l Ben efi t and Con tri buti on Li mi ts: ·01e Plan incUJJWAi.s...hx
u;Ie rencK 1bc nxiuircmen1s pf Code Section 11 s and eITecuru,anu aQ'. I 200s final
eJ.')!Jruipn;;jmcrnreting C;,de Sec1ion 11 s as ~nplkabkJ!Llhis governmen tal re 1i~'"™1
Ii,111....JJii;,.cJ.lS.l:.llf-l i vi nµ jncrc nsc of Cocle _S_c_cii on.il,5lill._~l!~ll .,_QQJinlltlo.;Jmiltla
j_ncrp sc the !lolim:.Jc~ncfit liniit of Code Secti on 1 J S(bl afte r the Paojc1Dant 's severance
Jicll:l.J:.mll)nym q 1. l'lldimiJa1ion.mJ<llll)riJ 11:1 inu:;_pJJ'Mlo;.H,)l i □n 4 J ,/r) ~1_,_1J.lilrn1!l'.!ll
£aa.i.~n1rihtllirics thmJ!!-t.IBlf\de _1vJhe RRO.1!,,:1.Fco\!UL..a ~ dcscr;ibcd if\-5 ~cJi_on ,2
l>cJgw ThcJiwlln ti@ year js Jhuotp11d oL.Y11n.. The Pl an inearporm~
f'~uit-i,t~l-lttJ~~~ttd-fttnt !--1~ul-n~ien5-tn lefj>retin~66ft,"%tt-4l-G,i",s
TTJ)Jl¼anb le 10 :hir go• BAlmenlel FBlirt1RHml :1l~~nefe.~e
~,e ,1-4+!>(4/~Htll-oot1li1tue-1e-t1wly-!e-HKlf«lS6•\00·Afllm4,e,;el;l-li miH>k.::ede-&eol10n
4Hf 0t41f1eHl;e-12tlft-iui1>n nt~Fiffi<J<Hf-O!ll-i!l½l~k,ytn"'1t-,-+ll<H-imilf'lien-oo
6"1>\Aa½lliell!H>~i<+,;kall-itj,j,!y-te-Poflieijlil l\H,<ltt\f➔oot-i<,11H-ln11-flHl
~~14100011nl,fl!Hlesefil,ee-ifi-Aft~~-l<>-linlilatiei+;1eaF-is
t he-f•,n4ttwlnr-ye;tr-
Sc ct io n 2. Defin ed Contribut~n:simumAnnuriLAP.rution11 Tb£ Portici'llllli
~Q l\jWJlli QIJSJ QJh cJ).B.QJ! ncw,111JJ .as de.scr ib.,! illhttic lill.,~u, ~pd in,:i.o ic lc V Sc cliQ,1
~].QLJ__uu;.Limitation.,Y,ear ,,.c;;!,a)I nm exceed when cx,pn;~,seU _a_
/'i1111c11µ1pJ's DROP accowJ1.,1pd whruL•d~l)_'>-il.Qll~?I addj JjonsJQ.JhcY?rJiciu•DX!i.!!'!H\11.l!l
~dimitHtjon Y,or und er •II other delincci ro11Jr,ll1_ylUlJJ.11J1u1~.1JE!J.lllllfil~ th<i.Jlnllll P~
~-PJ:,C(i ec~;sQLlillJ~®w.c)udu1g,:tclynt,1 1Y,CJDW)lY\;CJ;,Qll\.iIDLU!l.ll US<\;QlllJI SJlt iLddi11,1Lhl;.u.!J.il
12Jan 1min da1oa cO!!!J:i.1'.l.!J.i.QfilJQ.il.11~1u;iiuil~llJ1s..d_cjjn~~.JJ.LC.Qd.e sec1ion 41 i (c)(2}(0
iliLCWWuJ.iJ1clLJ;mWQy.i;,cncnsionpJnnsl an d ,11 wclli!!:!;_bc11cfit fu:id s. as de li 1l£!!.in.lntcrnal
R_cys;m 1e Code.1,ec1iQ11 4 I Qfel..i!ll<41JlY jndjyjdua) rur.dirnl,'llli!11m..,,,s d~)inJ)djuJuu,m/\L&w.m;,~
C.QS!e .~e..c tion,1.lilll..JJJc lesser of:
Lill l QQ%u of Jh c Comn!Ofililli,on paid Jo tile l'imi£ipanlbY th<;J;mnk1¥,eL..i1vu<;Jm N,
Ibs:_ .. C~rum:vuioo limitation referred to in Oil shall.nouumJ.yJo env contribution IW:
m.c.ili&,1l.b.lml;ft1a.C.Wi.:h!ll.lbe.Jill!.iln,i!11:.w)~1 40\ lh} or secJjon 4 l 9A(i}l 2) of 1he.,G~
is otherwi se treated as ~ll i•11J1\1i'J addl!io~<;i.J.WJJ 4 I S(l)I I) or 4 I 9Ald}rn of th e Code Th!:
Limiu11in,iu'..,c,arjJi I !JC cajemlac,yeac.,
~Utioo of Comoensntion For ouow:-cs ofthis.£cc1L~ .. c_omnsn sation.:i112 ll mean
wg_~\,;pj thin.1hc.,,n1cµ1Ung of lnlsaDDI Revenue Code section 3401'9) (for pump_~\;<; of in com e 1ax
ll:iJ l1holdjug •1 the soucce) ll)JLdctcrwincd.,ll\itbqu1.,r,gat<UQ.i!JIY.J.¥lcu bru.limiUhc..r,nw11cra1ign
inclu!i~<!Jn.»:ttgi&bascd on the namrs;.,or, pon ofthc.s:lPRIPvmen~
'llW ;;u bjec i Jo JheJi111i[a1~QldS-AA!,!ruOl(jl)ll1l • .wlllj~p..n,,1JioJ11llL~
QfJbis_Scc ;ion,,sba ll include ~ny cicclivc deferral as defined in Code; scc;ion 402!gl~
• IDii11nl.ll:!li.l:bJ.-· tn1.ril2li1<:l\.wtcf~rrruJJll,;_E1~JllQ)(cLJ!.Ul~~illMf.Itll:.Eo10lo~t\lLll
wh ich is 1121 mcludjbldn the gross income a( 1he Employee by reason ~~Ill
d?7 Co mneu s,Ji tul.a1so incl11drs r!ccti;tru1n;ot1ms that.e re nol inchuiihhuaJhr.Jrr.o..ss .. fo wnW
~.u£il.s.oJ l of Coc.leJ cc ti on, 112(0~
Bl.LPJ•mpses ofappJyjng thcJimiwions piJhjs P.,;tidc,.Q:unp c.ns.1ti.ruLCo c,pJ,im t11!ili!!J
Yni c,,i.5_ the Cu,mpcn ::ia lj911 it\:ilual!x uaiU utiu£ludililc i11 t--:russ iucu 111Si;..t.l,u.ciux ~1 ~
JJcfinjpon or Annual,A,ddµion For lhYll!IJ!Q,S.ruif.lhis sec1fon. '.'annual addjtjgn" sJ,all
w;an t!r surn,allqcatcd to a Partidoam's account for anvLirnitation xeat.Qf;
l'.ll EmPlover Contribut ion s·
Li.il l;moloycc Corulih\lliwls:
!iiil ~
lli:l Amoums dcri,vcd from co n1rib,u1ions paid ornccn1i;d afterPecember 31 \ 985.iJ\
tw,bk years epdjnuftcrnWj\le. which m auributablc 10 02s1 -re1 iremc:n1
med ical bene fits alloc rucdJo the scoarate nccount of a I( cv Frnnlov~
ill)ntem al Rcvenu g Code sectio n 4 I 9A(d1(ll, @dlll'..,Uclfaa;,,b ene fit fund,1!1
dcfinecLin Co.d£-Scction 4 I We) maintained bx the Emoloxcr and
u:) AmoulilSJ!Uoca uaj af)er March 3l I 98 4 10 an jodivjdualmcdi.ca! acco unt (as
<lWooLlo Jp1cma 1Rgyenue Code section 11 smc In which.~12,~~
~lililiUlllilin.eJl.bYJbe l;mplox,crJ nd
wl Allo-wUions ynr:tcr a simnhfied cmolovec u,s;nsioo.
Ili c tcnn "iHlllli.Rla<lditioU:: sh.ullng1 incivde 1hc ~ILCl.catiou to a Panici.011nfs,,a.<;..cg_uuLcl
ifilmnc 1ransferdt@ l,.Q)wu ulili ed,.plans, or roll o ver G.QJJltib.\!lm.
ADOPTED AND APPROVED this )rd day of December, 2012.
~\?~ ~ P. Pe111L Mayor
t, Loucri shia A . F.llis, Ci ty C lerk for !l•e City of Englewood, Co l
above is a tnte co py of Resolution No .~. Series of 2012.
COUNCIL CO MMUN IC ATIO N
----·
D a te Agenda It e m Sub ject
D ecember 3, 20 1 2 9 c I Res ol ution ad opting an
amendm ent lo th e City o f
Englewood Firefi ghters
Pension Plan Documen t
ln ili ated By I St aff Suur~•
City of Englewood, Fina nce and Admini s1ra 1i v~ Fra nk Gryglew icz, Direc to r
Se rv ices D epa rtment
COUNCIL GO AL AND PRE VIOUS COU NCIL ACll ON
Tne Cit y Cou nci l pas sed O rdin ance 46, Seri es of 1999, ad o pting an amen ded City o f Englewood
Fir eli ghters Pens ion Plan document. Th e Plan doc ur1e 11 t hd~ Ui=e 11 amend ed from time to tim e
RECOMM END ED ACfl ON
Staff reco mm ends l he City Coun cil approve th e atlac hed reso lut ion ad opti ng an am endment 10 the City of
Englewoo d Fir efigh ters Pens ion Plan Docu rn en'
BACK GRO UN D, ANA LYSIS, AND ALTER NATI VES ID EI\TI FIE D
Thi s re soluti on d oes n ot subslanlially cha nge th e curr ent leve l of pe nsion benefi ts fo r th e Firefi ghters
Pens ion Plan participants. Th e reso lutio n ma kes changes re quir ed h,• th e Interna l Re ve nu e Se rvice (IRS ).
The Plan document is am ended 10 comply wilh standar ds n ecessary for th e IR S Letter of Determination.
1. Am end A rti cle I, Sec tio n 2.b(2) as fo ll ows, eft ecI1 ve D ecember 3 1, 2002 , as require d by th e IRS:
(2 ) !;f&ctive D ece mber 31. 2002 th e mortality tah le us ed to adjust any benefit or
lirnj rMinn under Co6 e sec;jon 415{bl:WliU.Q.m.1Ql is the tab le pn,scribed by RPv . Rul. 2001 -
6 2 .Se I el, fer ~il r~eses e( ,\F tiele-X+-ht'feef,0Fl--ilt\6~1fta-Janua f\'-h-+9~4alil~fflf.l\iett
lor calrnla t io" _;l,all ~-t~if~•eenl-~)-male,-fifty perce nt (50%) lemale,
t~-1-the-1-9/H-Gfeup-~<>fli!lity-T-alak,,
,. Amend Article XI, Sec ti o n 1 and 2 as fo ll ows, effectiv e Janu ary 1, 2am, (or as o ther vise indio red ),
as requir~d by th e IRS :
AR TICLE XI
Annual Be neiit and Cont rib ut io n Lirnits!-€ffer.ti.e lanuary I 2QOR)
Section 1. An nual Bene fi t an d Contrib u ti o n Limits: Th e Plan incorporates by r efer ence
th e requireme nts of Code Sec tion 4 15 amJ ef fec tive janva rv 1 2008, fin al reg ul.i tions in te rpr eting
Cori<, Section 41 5 as .,ppli c ahle 10 this gove m111 Ulill...!.r;:_tirg 11J 11Lr,l;1n. T_he cos t-.Qf:l iyin gj_nr.rP,e~J! _of
C:ode S1!ctiq!L4]5{d} "hall co rniout: to apply to u,crcase th e doll ar h Pn r.fi t limil n f C:nd " SPrt 1nn
:Llillil .,r t Pr rh P. Part icipan t's c.everar,ce from einp loyrnt-~rH. The~ limitation 011 contrib utio n s of Cod~
sHc tio n ,11 Sf:) shall apply to P.1 rticipant con tributio"'' th.1 1 ;ire m ;,dc to the DROP a<·cm 1111 1 ;1s
c!escnhed in Secti o n 2 b e low. Th e li m it ation yN1r is the n,len:far y~.)L +l h~Plan-i-=t EfRl:Jl thtlt-!~1:ty
,~e--1~-1 e qui,~-tttttb-t,f-tBde--5~~-4 1-5 ·rt 1·1d-fi1-1il._l'egt 1lalk:H½S--fHl-Rt1r{~1i1~e--See t i011
4-l-!;,ar.113plieablt'-1<Hl>~ev"""""'~~~n,e-eesH;f-:i..a~ase-ei-ta""-S •,c"11c><,
41 -f;{-tl)-,,kall-€eta lir,•e.e-l<>-ili>l31y-;e-t+l€f€ilse--lAe-<J e l!ar-heflefil-li1nil ~e-SeElie11-41-f;(b\--a(1c,0 1he
1-\1 rt i~it:Jil l~t.'..s -!.everanc--P.-lr-em-e1n1:Jle vmeBl-:--T-he-liA1Ht1li6Ft-efl-€e1=tt ri0Hl-tm~~e•-tH: .. ~A--,4-4-;{ <.4
sk all-i 1f111ly--1 0--P-r:1r~iEtpaAt-e&1 '\f•1Gl tl it:,nirll1 ,:iH.1 re-1 1·111dc-t9-tR-e-900P...a€€ffi-tl:l l~fft"l,,;rfihf~rl -in-A-t:l i Af'
v,.r..., .. r-1i1:tr1-U..fl-TJ:1E.Yimttnlie n-year-t;-1l1(--e~le1:i ck1r-yh1r-
c;er tion 2. D e fi n e d Co n1ribu1i c,n PIC"l n tv1ilx m1Jm A11nuttl Additions . Tiu; Pdlli ci µ,1111
LU1 1l t il1utiu 11 ~ tu 1li e DROP tlC COJ!!1 L..ilLCJ~l.ig_d in Article IV Sec 1i on 2 ;met in Articl e V Scc 1jon Q.d br anv
l.imi1 ;ui9 n Ye ar shall n n t exceed w hen expressed ris iln aru11 rn l m ld111 o n to the Participarit's DR O P acc.Qll!ll
and whe n added to th e annual additio n s to the Parti;ipant's account fn r th e I im ita tion Yea r under all othe r
rlefinPd c.o n1ri b 11 ti o n pl;,ns mainti!!.(lf.d h~ub_ Emplo ye,_p r a.P..!'.ru'Jece ssoLeuw loy er (incl ud1nc volunwrv
e mpl ov<:e CQfl lr~~n ,1 cf P.{in erl h endit pl~r m ;mdat,"lry rnntrb11 1i nnc; l o a d ,~fi nPcl h erl Pfit
.1lan ;is d e fin~rl in Cork~ ~e ion 1.Jj_(g1,lliJ ;md sirn ,liH •cl e m Jloy~e p<:!11 !<i on plane;) ;i nd ;1ll w elfor e hfnefit
fund!,, ,JS def nc d ln Int e rna l RcvcntH.: Cr:dr :.r.c:ti ru 1 4 11 , anrl i\Jl Y individu,11 rn c:di c r1I at;cuunt, ii ~ dP.finecl
in lnt c m r1l l~cvenuc.:-Code se c t ion •11 r;11 ',. the \c-;~1:1 uC.
$40 000 as adj,1sted under lnte rnil l 1~evt!llllt~ Cod e stcllon 4 15(d ); ,.r
jii) 100°/n o f th e Compen sa1io n pai d t o !he Partici:J a nt by the Employer !n s uc h year.
Th~_ Comri~Jj ;:,1 itati o n ref~J red to in (ii ) shall not apply to anv cont ributio n for fTI Pdi r.;I
b enefi ts (withi 11 the 111f!rtnin g o f s1~r 1ion 40 '. (h) o r s1-•rti on 4 19A(f)(2) pf th e Code ) w h ich is uth erv\'ise trea ted
a s an ;1n n lJa l addition unde r sec1i on 4 15(1)(1) n r '11 9A(d )(2) o f th~ Code. Th e Ljm it a li o n Ye a r ~
cillcndar year.
Ddi11 i1i o11 uf Compensation . Fo r purposes of th is Sec tion C o mpensation sh all m ean wages w1 th in
t he m ea ning of I nte rnal Rev enue Code sect ion 3401(a' {lo, p urposes o f in come tax wi thh o lding at th e
source) but de termin ed w ith o ut rt!J'ard to any m ies that liniit th e r emuneration incl uded in Yiag~:;, based Q.!J
th e nature or location of the ~mplov.ment or tb.e servi ces p erfo rm ed and subi ec t to lhe iimil ation s of CmiP.
section 401 {a)( 17 ) as ad justed. CnmpPnc;atinn fnr nwposc.>s of thic; St?c ti qn sh all include any e lec tive
d c•f er ra,I as defined in Cmie section 402(g){3 ) and any .:i m ounl which i!', contril?_y tc d o r d eferred h v th e
Emplo yer al rh r. elec t ion o f the Emplovcc an d w hi c h is n o l includihle in 1he gro~s incom e of the [m ploye~
b y r,:ason o f Cot.le secti o 11 1 2'.:i 0 1 4r:i 7. Cc 111 pc11 sati o 11 dlso im:lucfos ele<.:livc ,1in q unH, 1h a 1 are n ot
j_ncl llll iblc 111 th e gross incom e nf a Par1i ci pan t hy rea son o f Code sec ti o n I '\:!jO(t:).
For purp oses o f rl QP~ li mitation s of lhis .'\rt ide Compen sa ti on fo r a Li mita ti o n Yea r is th e
Compens ati o n ,1r:111s1 ll y p,1id o r in dudihle in WQ5_,'!_jn co m e during such 'yea r~
11 efi nitinn n f Ann11 ~l l\rlrlitinn F;)r th e JJutposes o f thi s Se ctiun •annual .1dd itio nN sh a ll m e an th e
sum all p .,ted to a P~c11, ··-= a ccoun t for :m y Limi i11 t1on ycnr of:
(i) [mployer Con1ributio ns ·
Iii) Employee Con tributions;
lliJL__f .!llf!il.\.!I§;
ili<l____{m o unts derived fr om con tributions paid o r accrued after D ecember l 1, 1985. in taxab le
ve,m end ing aft er rnch date w hich arg_;i tlributable to post -re11ren1 en1 merl1cal ben efi t s alloca ted to the
sep.ua t e account of a Key EmployPP as rlP finPrl in hu ern al Reven 11 ,;t__C,Q.(Je seQJ.91L~ 19,'\WJil}, un der a
welfa r e benefit fund ,1,; defined in Corl e sec ti on 419/e l mai ntai ned by th e Employ er: and
M Amounts all ocaied after March 3 1. ] 984 10 an indivi dual m edica l account fas define d in
Intern al Revenue C.ode sec ti on 41 Sfllf 1 ll which is pa rt~ ision or annuitv plan m ai ntained by th e
fmployer; ~nd
lvil Allu Ldlic,m, und er,, s im plifi ed emplovee pcn?i.Q!l:.
The 1e rm "annua l addition' shall not include th e alloca ti on to a Participant's ac count o f Income
tr ansfer ~ fr om nthPr (II frllifi e d plans or ro llover contnbllliQ..[lS~
FINANCIAL IMPACT
None
LIST OF ATTACHMENTS
Proposed res ulur inn .