HomeMy WebLinkAbout2011 Ordinance No. 049ORDINANCE NO . .i
SERIES OF 2011
BY AUTHORITY
COUNCll.. 80.L NO. 58
INTRODUCED BY COUNC[L
MEMBER \VILSON
AN ORDt'<ANCE AMENDING TITLE 3, CHAPTER 1 , OF THE ENGLEWOOD MUNICIPAL
CODE 2000, ENTITLED "CITY OF ENGLEWOOD NONEMERGENCY EMPLOYEES
RETfR.EMEI\T PLAN AND TRUST AS AMENDED AND RESTATED EFFECTIVE
JANU/\R Y I, 2008".
WHEREAS, in order to maintain the Plan's qualified status changes need to be made to the Plan
during the year 20 i I, as required by lhe lntemnl Revenue;; Service; and
\.\'HEREA S, the current Code langua ge needs lo be corrected to read "NonEmergency
Employees Rc,ircmcnl Board of the City of Englewood"; and
WHEREAS, additional language at the end of 3-4-l 7-3(8)(2) EMC that an eligible retirement
plan includes e R0th IRA;
NOW, THEREFORE, BE IT ORDAINED BY TIIE CITY COUNCIL OF THE CITY OF
ENGJ.EWOOD, COLORADO, AS FOLLOWS:
Section 1. The City Council of the CitJ,· of Englewood, Colorado hereby authorizes amending
Title 3, Chapter 4 , Section 11 , Sub5ccli on 1, "Rctircincr.t Boord" of che Englewood Municipal
Code 2000 to read as follows:
3-4: CITY OF ENGLEWOOD 1'0NEMERGENCY EMPLOYEES RETIREMENT
PLAN AND TRUST AS AMENDED AND REST..\ TED EFFECTIVE
JANUARY 1, 2008*
3-4-11: Administration of the Piao.
3-4-11-1: -Retiremcnr Board.
·n,ere is here by created a boarr, to be known as the NonEmergepcyEnniliu:sss Retirement Doard
of the City of Englewood ("Rriircmem Doard") 1uhic h shall be composed cf seven (7) members.
One (I) memher shall he an electec member of the City Council who shall be sclecrcd bv a
majority of the members of City Council. One (I} member shall be tile Director of Fuiancial
Services appointed by the City Manager. Two (2) n:embers ;hall be employees of the Ci,y who
are Members of tho Plan, who sbnl ' besclect~.d by a vote of all such Members in accordan ,c with
such procedures as the City Manager may adopt, from time to time. Three (3) members shall be
taxpaying cle<:tors of the City who shall be selected by a majority of the members of the City
Council. In addition, the City Manager, or his designee, shall serve in an a~visory capacity, as an
ex official, nonvoting member .
Mc111h ers of lhc Retirement Board shall be appointed for four (4) year terms , provided the said
mc111h~r continues to possess the qualifications provided herein during the member's 1enn and,
ft1r 1hcr prov ided th ;,t
A . The Council mcn1hcr sh;ill !-crvc dunn g 111 s lcnn or nfficc as a Cnum.:il mc:n hcr; amt
D. The D11cclol' uf financial Se rvic es 1-ha ll :-:crvc during hi s 1c.;nun..: in office ns such
l)1rcc..;1 r,r .
s :10ulcl a vacancy occur in the membership or the Rctircmcnl Board, lhc smnc :ihnll l1c lillud for
the durati on of the unc,.p :rctl lcrm only , in the snmc manne r as provided herein . Prior to entering
11p n11 lh,· pr.rfnrnmncc of th e clul1c.c. nf a n·1 emher o f tl1c Rc:ircmcnt Bourd , ea :11 mc1nhc r lhcrcof
sli.ill t;1kc nnd subscribe an oath that he accepts th e obligutions impo sed upon him by the
pcovr s im,s of this Plan and that he shall faithfully perform the duties of such offic e .
Five (5) members of lhc Rctircmcir. Board 5holl constitute ;:i quorum. All nctinn :,; t:1kc11 hy tl1c
Board s lmll be arpmvc:I hy a majo1ity vo,c of a quol'llm of the Rc.tirement Boarcl 111emhers . /I II
:u:1 imrn , cltcisions and determination s of th e Board shall be recorded in the minutes ol'·,,c
l{cl ir~mcnt Oo,inl 1.11<1, unl c:i;r, incon i;i::t -::nl with lhc pnwir.i cm 1; of the Jll :i n, ~:ha ll he bin .l ing and
conclmdvc upnn .11! i111crcs 1cd parties .
No member of the Board !:hall rccc1v1..: compc nr.:tl io n lin hi !: sc rvi...:c on the 130:1rd hut a mc•11bcr
m:1y he rc imhmscd for rcaso11ahlc cxpc11 scs im;urn..:cl in cw111cctirn1 with his tlutit.:s as ,1111~111 bcr
of the l3oard .
Sec tion 2 . 'J'hc City Council o f the C1 I)' of E11glcwtKnl, Coh ll"1.1du l1c1chy ;1uLlu1 ; i:1.cs m11 cndjng
Tille 3, Chapter 4. Section 17. St1b scc tion ), "llireel Rnllovcrs" of the En~lcw :io d M11111 c1pal
Code.: 2000 lo re:.){) :ts foll o ws:
1-4-17-3: Direct Roll<l\'Cl'S ,
A. General. This section a pplies 10 dist:·ilmti ons mudc on or ilftcr J;_rnu ary I . 1993.
Notwithstanding any provision of the plan to the contrary that would otherwi se li11 1it tr
di i,;Lribulcc1s election under this s~ct ion, n distrihutce miy ckct, ill the tim e and in th e mann<~r
prc:-:cribc.;tl by the boar<l . tu have auy pci-1m11 of an c::ligiblc rollove r distl'ibuli on wluch
cxccc,is $200 .00 paid drrectly to an eligible ret irement plan specified by the di stri but cc 111 a
direct ro llover . !fa distrihutcr's direct rollover distribution is less than $500 .00, rh c
di st ri lJuH;c 111.:1y 01dy elect lo direct roll over 10 0 percent of the el igible rollover dis tri buti on.
D. D<d ini1in11s :
I . Eligible R,,1/ov cr Dmrib111i11n . An eligible rollover distnbution is any distribulron of all
or any pon,on of the balance to the crcdil of lhc 1:istrihutce, ex cept !hilt an cligiblt~
rulluver li:.stribuliou dot:s uul im.:lm\c : any dist ribiJtion thal is one of a 5crics of
substantiatiy •~11al periodic payments (not less frequently than annually) made fur the
life (or life expectancy) of the di,1rib11tee or th e joint lives (or jo!,·,1 lifo exp ectan cies) nf
the distributee and tl-.e dist ributee's designated beneficiary, or for a specified period of
ten ( I 0) years or mere; any distribution to the extent such distribution is rcquiled under
Code Section 401(a)(9); and the portion of any distribution that is nol includablc in gross
income (determined w :lhout regard to the exclusion for net unrealized appreciation wi th
respect lo employer s,.curiucs). Fo r drstributior.s 1ru1de after December 11, 2007, a
2
·portion of• di stribution shall r.01 fail 10 be on eligible rollover distribution merely
because the portion consists of af\er-tax Employee contributions which arc not includible
in gross income . However , such portion may be transferred only 10 an individual
retirement account or annuil)I described in Section 408(•) ·>r (b) of the Code, or in a
direct 1rus1ee-10-trus1ee transfer lo a qualified trust describ,·d in Seci i;.,n 40l(a) oflhe
Code which is exempt from tax under Section SOl(a) of the Code or to an annuity
contract described in Se•,tion 403(b) of the Code , provided such trust or cc,nlroct
provides for S<'Parale accounting for amounts so transferred (and earnings thereon)
including separate accounting for the portion of such distribution which is includible in
gro~s :ncomc and the portion of r.uch dis tribution which is not so includible .
2. Eligible Retirement Plan . An eligible retirement plan is an indi\'idual retirement accow11
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 qualified trust
described h Code Section 401 (a ), that accepts the distributee's eligible rollover
distribution . However. in the c;ise of nn eligible rollover distribution to the !i wviving
spouse, an eligible retirement plan is an individual retirement account or incividual
retirement annuity . Effective January I, 2002, an eligible retirement plan shall also mean
on an nuity contract described in Code Section 403(b) and an eligible plan under Code
Section 457(b) which is maintained by a slate, political subdivision ofa state , or agency
or instrumentality of a state or political subdivision of a state and which agrees to
sepnrotely account for amounts trnnsferred into such pion from this Plan. The definition
of eligible retirement plan shall also apply in the case of a distribution to a surviving
spouse, or to a spouse or former spouse who is the alternate payee under a qualified
dom~stic relation ordcr 1 ns defined in Code Section 414(p). Effscti:4ca,Jpnuary I 2908
an.elifilble re1ircmen1 Plan shalLaJso mean a Roth IRA dwsctibed in Code Section
408Albl _a;ect 10 anv anoli.cable li~dt§Cribed in Code Sccti~
3. Distributce . A distributee includes an employee or former employee. In add ition , the
empl~yee's or fom,er employee's surviving spouse and the employee's or former
employee's spouse or former spouse who is the alternate payee under a qual:ficd
domestic relations order, as defined in Code Section 414(p), arc distributees with regard
to the interest of the spouse or fonner spouse .
4. Direct Rollover. A direct rollover is a payment by tbe pion 10 one eligible re tirement plan
specified by t~e disuibutec.
5. Waiver of 30-Day Notice for Cnshouts of $5,000.00 ($3,500.00 Prior 10 Jam,ary I. 1998)
or less. If a distributior, is one to which Cooe Sections 401(a)91 I a3d 417 do not apply,
such distribution ma~; commence less than thiny (30) day s after the notice required uuder
tm1sury regulation Section 1.41 l(a)-l l(cl. is given. provided that :
a. lite Board clearly inform s the member that the member has a right 10 a period of at
leas t thiny (30) clays after recei\'ing the notice to consider the decision of whether or
not to elect a distribution (an,1, if applicable, a panicular distribution option), and
b. The member , after recC"ivine tht: nNicc, affinn;\tivc ly elr.cts a distribution .
C. Distribution to IRA of Non-Spouse Beneficiary . A Member's non -spouse Benefic iary may
!!le.ct lo have any portion of an eligible Plan ciistribution pc1id in :1 direct trustee -to -tmste::
transfer 10 an indi vidual retirement account or annuity described in Section
3
40 l(c)(SXB)(i) or (ii) (o f the Code th ,11 is cstahlishcd to receive the Plan di strihution on
hdmlf of the Den cficiury. For pwposes of this Subsection C, a trust mainto incd for tht
hcnclil or one (I) or more dc.~ignnted bcnef,ci,,ries may be the Beneficiary to th ' extent
prnviclcd in nilc~ p:·cscrihecl by the Secretory ofT1ct ~ury. lfthe M ~mhcr Ci cs art cr 1hc
Mem ber's required hcginning time ..i:.. Udi11cd i:1 5 cctiu11 3-4-6•5 hc1 co f, the 11.:\111111.:11
11:initmnr. distr ibution i,; the ycnr of death in :1y not be l!Tmsfcrrcd :1cc11nli11~ to this
Suhscc tirn, 3•4 -17-3C . The rcqu;rcments of Cod e Sect ion 402(c )( 11 ) i!pply 111
cl :s1ribu1i oi,s under thi s Subsec1ion 3-4-17 -3C .
Sc\;I i 1111 2 . S11fc1y C1 ,,u~cs. The C ity Council hcr!;hy finds, dctcrmim:s , a :ld declares thnl 1hi~
O rdi1111111.:-.: is promulg:r.ccl under the gc111.:rnl 1>ohcc rx•we::r of the C ity of En~lcwood, 1)m11t 1s
jll'Olllulgalcd ror the hcahh, snfcly, and welfare of the public , an<l th;i.l this Ordin ance i:; nt:ces!-ary
for the prcsc1,•ntinn of health and r.afcty and for the protection of public convc1,ic11cc ;:1ul
we lfa re The: C ily Council further detenn.ines that the Ordinance bears a rat :onal rebt ,011101hc
proper lc~is1 £tivc object sought to be obtained .
~c:c tion 3. Scvcrahility . If ~m y c lause, scnl cnce, paragraph, or p,111 n f thi s 01cli1 wncC' n r 1h,~
applic a tion Lhe~eo f to m1 y pr.:rson o r i;ircu111 s111 11c.;s slmll fo1 11 11y n~tM.111 lie adjucl i;cd hy n r.:.111r1 o f'
cmnpctcnt jur i!>d1cti,m invalid. such ju:lt;mcnt sli all nm affect, impair or invalidat e the rema inde r
of Lh is Ordinance or it ;,pplic.1tion to o ther persons or ci1cumst:111ccs .
Sf:l:11011 4 Ii11 :onsis1 ~ml ()nlinmu :,~s. i\11 n1hcr Onlin;,ncts or portions thcn:o :' im:onsi sto::nt or
c..:0111li c ting with this Ordinance or ;my porti on hereof ;ire lu:rcby rcp:.:nled lo lhc extent of :mch
inconsistency or :0111lict.
~ecLion 5~ Effect ofr~pc;,I or modi fic a iio!I.:. The repeal Lil' 11 11tUilic..:11lio11 of any p1uvi s iu11 u :'
1hc C:ndc of lhc Cily of Englcwnod by this Ordinance shall nOI release, cx ti111,"ish , oiler , modify ,
or change in who le or 1u pnl'l uny pcnnlt y, forfeiture , nr li:'1hi!ity 1 cilhcr ci vil or criminal, whic..:h
shil !I hav~ been i:l curred unde r such pruvisi un, and each pnwif;ion shall be trc,ucd ;mrl ht.:1 :1 as
~till n::moi ni11g in force for the purposes of sustn :mn g any and all prop er :,ct i0n s , s11i 1s.
1uoccetling.'i, am.I p1osc;;eulio11s for ll1c enforcement of th e penalty , forfeiture , or :i.1bili ty, as well
as for the purpose of t:ustain ing any j udi;mcnt . decree , or order which can or may ~le rende red.
cnlcrcd. or made in such actions, suits, procccdin g5, o r prosccut1011s .
1icc ti c!!..Q; Pt"Tlalty . The Penalty Pro vision n'.· Se.ct inn 1-4-1 EMC !i:h all ;.1ppl y l.i ,::ic h and
t.:vcry vi•1l.1 t io u uf ll1i s V 1<li11a1 1cc.
Introduced, read in full , a11d pas sed on fitsl readin g on the 19"' day of Septemh:r, 2011.
Publi shi:d hy l'itlc :is n Hill for ;111 Orrlin;111cc in thl' C.ily's nfiicial ncw .,pi.lpcr cm lhc 23rd cli:,y of
Scplcmber, 2011.
l'ublish~d as a Bill f'or an Ordinm1ce on t11c Ci1y ·~ oll'lcinl website begmnrng on the i 1" day or
September, 2011 for lhirty (30) day s
R!!ad hy lit le and passed on final read in~ on the 3rd day of October, 2011 .
Published by title in the City's official newspaper as Ordinance Not/!}_, Series of 20 I I, on
the 7th da y of October, 201 I.
Published by title 01< the City's official webs ite beginning on the 5th day of October , 2011 for
thiny (30) days.
I, Loucrishia A. Ellis, Cit y Clerk of the City of Englewood , Colorado, hereby certify that the
above and foregoing is}Bc copy of the Ordinance passed on final reading and published by
titl~ a~ OrJina 11c e No.1-;-. Series ,:,f 2011 . ' 9
CO UNC IL CO MMUNI CATION
Date Agenda Item Subject
A bill for an ord inance updati ng the
Septembe r 19, 201 1 9 a i NonEmerge ncy Emp loyee Reti remen t
Plan (NERP) to comply with changes
reqJired by IRS and making a
correction regarding the Soard nam e.
Initiated By
I
Staif Sou rce
City oi Englew o od, Finance and Administratrve Frank Grvglewicz, Direc:c,r
Services Department
COUNCIL GOAL AND PREV IOUS COU'JCI L ACTION
The City Council discu ssed these issue s at the Sept~1nber 6, 2011 Study Session.
RECOMM ENDED ACT I ON
The NonEm ersency Employee Ret irement Pla n Boa rd re commends the Cit, Council app rove the attached
br ll for an ord in ance making changes 10 NERP as required liy th e IRS , and 10 correct the Ooard name .
BACKG ROUND, ANALYS IS, AND ALTERNATIVES IDENTIF I ED
TI1is ordinance provides for NonErnergency Empl oyees Retirement Plan changes requi rE:d by the Interna l
Reven ue Services that must be completed during 2011 to main ta·n the Plan 's qualiOed status . The
fo ll owiag is the required lang uage added 10 the end of Sec tion 3-4 -1 7-3B.7 :
Effective January 1, 2008, an eligible retirem ent plan shall also mean a Roth lf<A described in Code Se ction
40 6A1b), subject to any applicable limits dc,cribed in Code SPction 408A(c).
Th e other change i; a correction of the Bo ard name in EMC 3-4-11 · 1.
Neither of these amendments will require any ad ditional funding or pla n Jen efit cha nges .
FINAN CIAL IMl'ACT
These cha ng ei ha ve no substantial impact on the funding of ,he Plan or the C:ty's ove ra ll 11nancia l
condition .
LIST OF ATTAC MMENTS
Propo,cd bill for an ordinance