HomeMy WebLinkAbout1987 Ordinance No. 037I
ORDl NANCf. NO. 31.
SEH J K<; OF 1987
BY Al!l'IIOR11'Y
COONCIL BILL NO. 41
rnrnooucrn e·1
MI\YOR m·rs
I\N OIIDINI\NCE REPFAL I NG CHAPTER 6 ( CIIAPTf.RS 6A 1llllOOGII 6E) OF TITLE J,
ElllGl.,1,w xo MUN lCIPAL COD E 19 85, COOC ERN !.NG llE'l'IRfMl:Nr PRO:;MM FOR NOl~ENCY
Fl'IPWYl•:r::s , /\ND REENACTING A NJ:l,/ CIIAP'l'C', G OF TITLE J , ENGL.D.IXlD MUNICIPAL CXXlE
1965 , J•Nr] 11.m "CITY 01' F.NGJ..EWXll Na-lE1'1El1GENCY E11PL(,.' '1::5 RE'I'IRfMl'Nl' PLI\N AND
TaU5"l' /IS RFS /\TFD F.FFl-1 'l'TVf. J ANUARY I , 1987. "
Wllf.HFJIS , for <1 pproxima tely two years , the Eng l-Pension Board has
IY'r>n wf>r k i n<J on a plan which '-"Uld bring the present Nonerrergenc y Elrployees
P<>M i on ri.,n into carpliance with rns regulations, t o rro.re logically construct
thr l rm fo r rlari.ty, c1.nri t o make o the r mi.nor ~roverrents to the plan without
11 ndu l y i nc rc"-sina the pl <m 's actui'lrially unfunded liabil.ity;
NO,\', 'l'l!EllF:FOI\E, BF. IT ORl~AINFn BY THE CITY COONCIL OF .,..,r
tNGJ.J1'K.XlO , rotffiADO, ·1111\T :
,Y OF
Section l. Ch a pte r 6 , including Chapters 6A through 6E, of Titl e J ,
P.n<t l"""""1 Municipa l Ccxle 1985, i.s hereby repealed, and a new Chapt:P.r 6 of
'l'i t l e 3 i s hereby ndopted to read as follows:
-l -
CITY OF Y.N GLJ'.\/000
NONl'.KE RC t:NCY Y.l'IPLO \'"EES
JU;TI Rf:l'IENT PLAJI
As Restated Ef f ective January 1, 1987
Emp }ovees Ret 1 rrme nt Pho
ARTICLE I Purp o!.e . . . . . . . . . . . . . . . .
ARTI CLE II De finiti ons
1. Nnme .
2. Defi niti ons
3. Co nstruct I on
ARTI CLE Ill Membe r s hip ... , ... , ..... .
ARTIC LE iV
ARTICLE V
/\RT!CLE VI
ART I CLE VII
1. t:m pl oyees o n January l 1 1970 ..
2 . Employees lllr ed After JJHrnAry 1, 1970
3 . Termlnatl o n ......... .
Credit ed Se rvic e ..... .
1. Cr ed it ed Service .. .
2 . Limitati o n o n Cr ed i ted Se rvice
3. Br eak In Service ...
'•. Ef fec t o f Ot h e r Plans
5 . Mi scc l lan eo us
Co ntributions
1 . Memb e r Gontri buti on!i
2. City Contributions •
3. Application of Forf e itures
Retirement Oates ....
1. No rmal Retireme nt
2. Early Retirement .
3. De layed Ret I rement
4. Disability Re tir eme nt
5. Limi t at i o n o n Distributi on o f
RP.t lr ement Benefits, ...
Retirement Benefits ...... .
1. Normal or Delayed Ret ir ement
2 . Early Ret ir ement ...
J. Di sabi lity Reti r ement
4 . De l ayed Retirement ..
5. Normal Form of Payment
6. Accrued Credits and Vested Benefits
Under the Previ o us Plan Preserved
~&.Ll!.2....
l-1
11 -1
I 1-l
11 -1
I 1-4
I 11-1
I l 1-1
111 -1
111 -2
IV-I
IV-I
IV -!
IV-!
I V-J
J V-4
V-1
V-1
V-1
V-1
V l -1
VI -I
VI-I
VI -I
Vl-2
VJ -J
VII -I
VJ 1-1
VI 1-1
VI 1-1
VII-I
VI 1-2
VI 1-J
I
Cltv o f Englewood Nonemeu.encv Emolovees Retirement Plan
TABL E Of CO[JTENTS
(Cont i nued)
AR TI CI.~: VI II Op tlon r.1 l \.Jr ms o f Benefits ...........• ,
l . Cc,...-:r l\ l . . . . . . . . . . . . . . . . • ,
2 . Qualifi e d Joint and Surv i vo r Be nefit
3. 100¾ Jo in t and S urvivo r Be n e fit Opti on
4. SOX Jo in t and Surv i vor Denef it Opt io n
5. Fi ve (5 ) Year Ce rt a in a nd Life
Be n efit Op t i on .
6 . Lif e time Be n efit Op t i o n
7 . Be n e fi ciary ..... ,
8 . Mi nimum Mont hl y Payme n ts
~~T I CLE TX De at h Be n e fit s ............ .
1. De ath o f a Nonv es ted Membe, Prior
to Ear ly Re ti reme nt Dat e . , ...
2. Death o f a Vest ed o r Dls .tb l e d Memb e r
Prior to Early Retiremeut Da t e ...
J. Deat h of a n Acti v e , Ve::i:-ed o r Di sa bled
Mem h P.r Bet ween Ea rl y and ~lorma l
Re ti r eme nt Dates ........ , .
II. Dea th o f an Ac t 1 v e Member Be tw e en
Nor ma 1 a nd De la yed Rc t I r emen t Oates
5 . De ath l)f a Re tir e d Mem ber o r Be ne fi ci ary
6 . Payme nt of De at h Be n efi t ~
7. Un i f o rm Si multa neo us De a d1 Act .
AnTI CLE X Seve ran c e Be n ef i ts .
1. Coverage . . ,
2. Le ss t han five (5) Ye ars o f Cr edit Pd Se rv i ce
J. Five (5) or Mo r e Yea r s o f Cr edited Serv i ce .
AR TI CLE x r Ad minist rat i on o f t h e Pla n .
1. Reti r em ent Boa r d
2 . Ma n ag em Pr-.... of the Pla n
J. Mi sr-c:1}anco u s
AR TI CL E XI I Pe t lr em ent Plan Trus t F und ...•••••••...
1. App o in tme nt of Tr us t ee ..
The T r ust fund. . . ...
3. Purposes a n d Au tho r! ty o f t h e Tr us t ee
4. Investme nt s ...
5. Tru st ee's P,:i we r s
6 . Admini s trati on o f th e Trust Fund
7. Remo v al o f Trus tee
~
VI I 1-1
VI 1 1-1
VI 11 -l
VI 11 -2
VJ 1 1-2
V J 11 -2
VI 1 1-3
VI l l -3
VIJl -3
IX -I
I X-1
IX-1
I X-1
IX -2
IX-2
IX -3
IX-3
X-1
X-1
X-1
X-1
XI-I
XI -l
Xl-2
Xl -3
XI 1-1
XII -!
XII -I
XI 1-1
XI!-2
XI 1-3
XII -4
Xll-6
~ltY of Eo&\ewood Noncme ru:o cv Em ol ovee s Ret l rrmcnt Plan
ARTICLE Xl 1 1
ART !C l.E XIV
ARTI CLE XV
ART I CL E XVI
TABL E Of CO S
(Continued)
Rt>ti r eme n t Be n eftts a nd Righ ts ln allen nble .....
l. Inalienabi lity
2 . Bn nk rup tcy ... ' ' ........ .
Mod lr i c llt l on o r T erm lnll t l on o f Plan
l. Ex pe ctati on
2 . Ame ndm ent
3 . App r oval Un de r t he Intern a l Re venue Code
4. Di sc ontinuanc e
5 . Te r minati on
6. Di s tribu t i on .
Ue n c fi t Res tr i c t i on s on Ea rly Terminati on
l. Res t ri c tions on T~enty-F lv e (25 )
Hi ghe s t Paid Emplo y ee s
2. Amen dme nt o f P l a n ...... .
Llml t atlon s
1. Reemp l oymen t of Form e r Non ve!l t e d Memb e r s
2 . Re emp l oym e nt of f'o r mer Me mb e r s
3 . Li mi tat i on of Ben efl t s
'•. Co n !.o lld a ti on o r Merg e r
AR T I Cl.f: XVI I Ml s ce ll nn e ou5 Prov i s i on s , , .
l. Right !. o f Me mb e r s
2 . Li mitat i on c f Li a bili ty
XI 1 1 -1
XI 11 -1
XI 11 -l
XI V-I
XIV -I
XI V-I
XIV -2
XJV -2
X!V-2
X!V -2
XV -I
XV -l
XV -4
XVl -1
XV l -1
XV l -1
XV l -2
XV I -4
XV !l -1
XVII -I
XV I 1-1
AB.ll.C.l,Li
l'l!.l:n.2ll
Ef fe c t iv e ftS o f January 1, 1987, the City f.ounc ll o f the City adopted the
amen<lrd Amt r es tated Plan , as se t forth h erein , to con tinue and repll'l ce th e
Pl an pr eviously in effect. The Plan nnd Reti r ement Fund are i nt e nded to meet
t he requir eme nts of Sect i ons 4 0 l(a) a nd SOl(a) o f th e In te rnal Revenue Code o f
1954, as amended . The Pl an prev loun ly kno\lTI a s the "City of .Englewood Retire -
me nt Pl a n" s hall h e rc-lnaf te r b e kn own ns the "City o f Englewood Nonemergen c y
Employees Retirement Plan."
The Plan and the separate relat e d Re tirement fu nd forming 11 part h e re o f,
\H!re established and shall be maintained f o r the exclusiv e ben e fi t o f the
e ligibl e Empl oye es o f th e City and th e ir Be n eflcia ries. No pa rt of the
Retirement f'und can ever revert to the City except a s hereinafter provi ded , o r
be used fo r o r diverted ,to purposes othe r than the exclus iv e b en efit of t h e
Employees o f tue Clty and their Be n e ficiaries.
This Rmendment and restatement o f the Plan .sha ll not, in any way
I
affect
the right s of former Employees who participated in said Plan and who e ither
... ire d or otherw i se t e rmin ated their emp l o~~ment prior to Janua ! I , 1987 .
The right s , if any , of such former Employees and of the ir Be n eficia r i e!J .!'nd
the amou nt s of their benefits , if any , s h al l conti nue to be govern e d by the
pr ovi s ions of the Plan as it was ln effe ct on December 31 , 1986
1
or the date,
if ea rlie r , of their retirement or termi nat ion of empl oyment, unl e$S specifi -
cally provid e d for othe rwi se h erein.
1-1
25 0p: 1
ART ICLE II
Definit i ons
Sec ti on 1. ~-Th e retiremen t incom e plan as se t fort h i n t hi s
doc ume n t shall be kno\ffi a:1 the City of Englewood Nonem n q ~e n cy Em pl oy ees
Retir eme nt P lan and T rus t and is h e rcinnfte r refer r e d to ll!l the "P l an ."
Sect i on 2 . l)ef ln lt\ons. Unless th e co nt ex t ot h e rwl ne requir es , the
defin it i on s and ge n e r a l prov l :1i ons c on tained i n t hi s Se c t i o n gov e rn t he
c on s truct i on of thi s re ~.tot ed PlRn.
"· "A cc rued Be nefit" mean s the ben e fit det e rmin ed in acco r d ance wlth
Article VII he r eof.
b. "Accumulated Contributions " me nn 9 the s um o f t he Member's
contributi ons t o t hi s Plan, credit ed with inter est t hereon at the r o t e of
J .5'¼ pe r a nn um.
c . 11 Actuarial (o r Ac tuari a l ly) Equi va l e nt" means equality in v alue
of th e aggregate amounts ex pected t o be re ce lved under different forms of
payment based on int e re s t rat e and mortality ns s ump t i on s as defin e d below'
unl ess otherwise s pe c ifically iirovided in the Plan:
(1) Int eren t rate assump t i on f o e a ltcrnnt Lv e oeriodi c benefits-
The in te rest rate u s ed for purpo se s of compu t ing alternt\tiv e perl odl c
form!. of benefits s hall be 7 .5¾ e ffe c tive Janua ry 1, 1986.
(2) Interes t r at e a s sumntion fo r s logle -s urn Pavm e nts, Effe c tive
for the calenda r year beginning on January 1, 1986 , and f o r e ach
ca lendar year following s equentially t hereafter, the interest rate
u!;t:d for purposes of computi n g s ing l e-sum paym e nts shall be the
lnunediate annuity r ai te (subject to adjustment as required for
deferred annuities ) used by th e Pens ion Benefit Guaranty Corporation
as of the January 1 coincident with or pr ec e ding the date as of which
the amount of the alterna ti ve form of be n e fit l s b e i ng determined
hereunder.
(3) Mortality as s umoti on . On and after Janua r y 1, 1986, the
mortality ass umptl o:1 f o r calc ulati on s hall b e n unisex r ate that is
SO X ma l e , SOY. f em3l e , taken fr om the 19 71 Grou p Annuity Ta b le,
P roj ec ted by Scale D t o 19 75 .
d, "Benefi c i a r y" means th e person or persons who are so de s ignated
by the Member, in t he lates t writt e n noti ce which th e Member has filed
1J i th th e Re tireme nt Board, to re cei ve any paym e nt t o w'hic h a Ben e ficiary
may become entitled under this Plan.
250p: 2
11 -1
I
I
e. "Boa rd " o r "Retirement Bo ard" me a ns th e Board l\pp o l n t ed by the
C ity Council and charged 'wit h the general admini st ration of the P lan as
se t forth in Se cti on 1 o f Article XI here o f.
f. "City" means th e City of Engl e wood , S t&te o f Co l o rad o .
g. "City Co t• .:11 " means t he Ci t y Counc il of the Ci ty .
h. "Co de" me ans the Inte r nal Revenue Co de o f 195 /i , as a.m end ed fr om
l l me t o time.
l. "Com pensat i on " mean 9 th e tot.l l cash remun er ati on paid t o an
Employee f o r a c al endar yea r by the :tty fo r per sonal s e rv ices a s r eported
on the Employ ee's inc ome tax 1Jith11 o ld lng statement o r stateme nt s
(Fo rm W-2 , o r it s s ub s eq u e nt. e qu iva l ent), i ncluding l ong evity pay a nd
exc l ud i ng bonuses , extra pay, compensat i on time , overtime, l ump -s um ~'ly-
me nt s l n lieu of .accr u ed v.ac atl on time, s i ck l e.ave , o r pe r sonal l ea ve,
worker's com pens ation and a ny contributi on by t h e Ci t y under t hi s Pla n , o r
t h e li ke, but i ncluding any compe.1sation that the Em ployee has el e c ted to
have deferred under Section 457 c f the Int ernal Revenue Code.
j . ''Cred it ed Service" means th e peri od of Service rendered by an
Em ployee as a Me mb er fo r wh lc h cred it l s allowed .
k. "Di sab il i ty" means .•. phys i ca l or mental condition which entitl es
the Mem b er to rece i ve a disabillty income und er the l ong-te rm d i sability
insu r ance contract maintained by the Ci ty.
l. "Effect i ve Oat ,: of t hi s Pl a n " means J a nuary 1 , 19 70. Thi s
restated Plan is eff ec.:iv e as of Janu ary 1 , 198 7 .
m. "Emp l oyee" mrans a ny pers on em ploy ed by the Ci t y on a p e rman ent ,
f ull -time bas is as defined in toe City Personn el Polley a nd P r ocedu r es.
Fo r the purposen o f t hi s reti r ement plan , po llce o ffi cers , paid
firef i gh te r s a nd elected o fficial s s h a ll not be c on s ider ed to be Employee s .
n . "Exempt Emp l oyee " means nn Employee h av i ng one o f the fol lowing
t i tles as def i ned by Cit y Personn e l Po li c i es and Proced ur es : Cit y
Ma n age r, Assistant Ci ty Manage r, any Depar t m1?nt Head , Municipal Co ur t
Judge, City Attorney, and Assistan t Cit y Attorn ey.
o. "fi nal Ave r age Monthly Compensat ion" mean s 1136th of a Memb er's
tota l Compe n sation d uring the th irty-s ix (36) con secut ive full calenda r
mont h s (determined witho ut the i nc lusion of any Br eA k in Serv ice) 'Jithin
th e last one hundred twenty (1 20) comp leted full calendar month s of
em ployment with the Clty whi ch yt.eld the highest average Compe n sation. i n
the event tht ember wa s employed fo r fewer t h a n thirty -s i x (36)
consec uti v e fu .d ca l endar months, s uc h ave r age mo n thly com pensat ion s ha ll
be based on hls Co mpe n s a tion fo r t h e thirty-six (36) s u ccess i ve fu ll
months dur ing hi s last one hund r e d tw enty ~120 ) full ca l e ndar n,o nths o f
emp l oyme nt with t h e City that would yiC'~d t he highest ave rage, o r his full
pe ri o d o f such em pl oyment , lf l es s t' .. l r ty -s l x (36) mo nths .
250 p :3 11 -2
p. "Ins ur a nc e Company " mea ns a ny insurance compnny o r com p an l es
a p pointed lJy the City Cou n c il for l on g-t e rm di sab i l ity cove r age , o r 11.s
provide<! in Secti o n 3 o f Articl e XIJ hereof.
q. "Leave of Absence" means any absence a uthor ized by the Emp l oy er
unde r such Employer 's s t a ndard personnel practices , prov ided t hat all
pe rsons un'1e r similar c ircum s tan c es must be treat ed 11.llke in the g ranting
o f n uch Leave of Ab sence, nnd provided further that the Empl oyee ret u rr.s
o r retlres 'w'ithln the period specified in the author ized Leave of Abse nce.
r. "Member" mea n s a ny pers on includ ed in t he membe r s hip or t his Plan
as p r ov ided in Article III h ere of.
~. "N ormal Re t irem e nt Age" means ag e sixty-five (65).
t . ''Normal Re tireme nt Date" means the ft r s t day of the calenda r month
co i nciden t with o r n ext fo ll owi ng the six t y -fifth (65 th) b ir thday of the Membe r.
u . "Plan" means City of Englc...,oo d Nonemergency Emp l oyees Rct i r emcnt
P Ian, as amended f rom tim e to time.
v . "Pl a n Administrator" mean s the Ret ireme nt Board o f the City .
w. "Plan Year" means the calenda r year sta r t in g January 1 and e nding December Jl.
x. "Previo us Pl a n" me ans the City of Englewoo d Retirement Plan
( including a ny p r ed e ce sso r plan(s) thereto) in force and effect fo r th e
period pri o r to Janu a ry 1, 1987, the Plan hereby being a men ded and
r estated. An y refer enc e herein to t h e Previ ous Plan as of a ce rtain date
or f o r a certa in period s hall be de emed a reference to the Previous Pl.m
as th e n in ef f ect.
y. "Ret i red Member" mea n s a former Member whose employm ent t erminated
by reason of retirement o r Dlsa b Uity and 'w'ho ls r ece iving o r i s e nti t l ed
to rt.!Ce ive, or who se Beneficiary 'lt estate i s e n tit l ed to r ec ei ve ,
bcne fits und er thi s P Ian.
z. "Retirement Benefit" o r "Pension" means a ny Re tir eme nt Benefit
pr ov ided fo r in Articl e VII h e reof ,
aa. ,.Retirement Fund" or "Fund" means the "City of Englewood
Nonemergency Emp loye e s Ret irement Fund," maint a ined by the Retir ement
Board or in accordance with the terms of the Trust Agr eement, amended from
ti me to t ime, which cons titutes a par t of this Plan.
b b. "S e rvice" means a person's period o r per iods of employment as a n
Employee u sed in d eterm ining el igibili ty o r the amo unt o f benefi ts as
descr ibed i n Article I V h e reof.
2 50 p: 4 I 1-3
I
I
cc . "Tr ustee" means any qualified a nd acting Trustee appo inted by
th e City r.oun c il as Named Fiduciary for the investm ent and management o f
Plan assets , as provided in Arti c l e XII h e r eo f .
dd. "Vested Member " means a forme r Memb e r whose Cr ed it ed Serv i ce has
term in ated by reason ot her th a n r eti r ement o r Uisablllty a nd who l s
e ntitled to r eceive , o r whose Ben efic iary or es tate is entitled to
re ce iv e , benefits under this Plan. A Ve sted Member s httll become a Retired
Membe r up on the ac tual commenc e men t o f benef it paym ents.
Sect i o n 3. Constru ct i on. The rna:;c ullne g e nder, whe r e ap p ear i ng In the
Plan, ~ha l l be d eeme d t o include the f em inine gender and wo r ds u sed tn the
s ing ular s hall Incl ude the pl ur al unle ss the cont ext cle arly indi ca t es t o th e
co n trary. Wo r ds suc h as "h ereo f," "h e r e in," and "h ereunder," sha ll refer to
t he e ntire Plan, not t o a ny particular provisi on or section. The Plan and
T ru s t s hal 1 e 11ch form a part o f the o th er by r e f erence and terms shal 1 be used
the r e in i nt e r c hangeabl y .
25 0p:5 II-4
ARTI CLE II I
Se ction 1. Emolov ees on Janunn:_L__l2IQ. f;very per90ll vho wa s ""
~:mpl oyee o f the Cit y o n January 1 1 19 7 0 cou ld be come a Me mber ln the Plan o n
!.U ch date by properly f ili ng with the Retiremen t Board , on o r before s u c h
date , the fo rm of membe r sh ip agreement furni s hed for that purpose. Any o uc h
per son \Jho did no t f l le the form o f member s hip agreemenL on o r b e f ore such
da t c ma y th e rca fter fl l e r.uc h membe n1 h ii' ag re eme n t a nd become a Membe r o n the
first day o f any s ubseq uen t mo nth ; but in s uch eve n t , s u c h Membe r shall n o t be
given Cred i ted Service f o r a ny peri o d of employme nt pr i or to the date h e
be c ame a Mem b e r of the Plan.
Section 2, Empl oyees llired After J 1m uary 1 , 19 70, Fo r e ach Emp loy ee
hi r ed after January l , 197 0 , mcmbr r s hlp in th e P lan s hall be a corditl o n of
empl <'y ment and ea c h Employee !;h a ll become a Mem ber o n thr date o f emp l oyment.
Such Em ployee shall be requir ed t o co mpl _e t e the form of membe r s hip dgreem ent
at th e time of employment, elect i o n or appoi n tment, e x cep t a ~ f o llo ws :
a. Th e City Coun c il may , by ordinan ce , estaL ll s h optional pension or
de ferr ed compensat ion plans for Exemp t Employees. Upon establi s hment of
any suc h op ti o nal pl a n (s), an Exempt Employe~ ma y at his o ption elect to
come "dthin the provision s o f s uch plan; prov id ed , h o weve r, that an Ex empt
Employee ma y not concurrently be a Mem b e r of mo re than o n e (1) r e tirement
pl a n to whi c h the City i s making con t ributions o n hi s behalf d u ring his
emp l oyme nt by the City. In the e vent that any s aid Ex empt Employee of the
City, t.1ho is presently a Member of th e Plan, elects to come within the
p rovisions of any other retirement plan establi s h ed by the City Council
a nd fu nded all o r in part by th e Ci ty , he ::;hall have the option t r be com e
a Vested Memb er of the Pla n (r e ga r dl es s of wh e ther o r not h e has •mpleted
fi v e (S) y e ars of Cr ed ited Se rvi c e) or to withdnw fr om the Plan l 1e
amoun t calcu la ted under Section 2 o f Art icle X hert!of.
b. Ex e mpt Empl oyt!cs o f th e City 1,1ho arc Member s o f th e Plan s hall,
~!t hi n s ix (6) month s fr om t he lnst ltutl on o f any optiona l plan(s) by the
City Co unc il, elect wh e ther o r no t to become a memb er o f a ny optional
p lan(s). Sai d electi on to becom e a me mber of th e n ew plan o r to remain a
Mem ber of the Plan shall be irrevo cabl e.
25 0p: 6 III-I
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c. Those Empl oye es wh o may become Exempt Empl oy e es by promo ti on o r
ap po intment or o th e rvise , s h all have s i xty (60) days fr om the ef f ec ti ve
da t e of the ir a p poi n tment in s aid Ex empt pos ition in whi c h t o elec t e i t he r
to r
1
n J n o r t o become a member of one o r any ot h e r o pti onal r!a n. The
e le cu n t o become a memb er o f another plan shall b e irrevo c abl e.
d . City Co unc il h as pr e vi ous l y d es ign ated th e Interna ti onal Ci ty
Mnnag eme nt Asso ciation Re tir ement Co rpo r a ti on De f e rr ed Co mp e nsati on Plan
("J CMA Pl a n") whi c h is es tabli s h e d under Sec ti on 457 o f the I n terna l
Revenue Code a s a n o p t l on 11 l pl a n t o \Jh lch the City would make
·:ont rl butl ons on behalf of Exem pt Empl oye e s vho el ect thi s option.
Se c t i on J . Term ina ti on. Membe r s hi p of a ny Member s hal l termi nate if a nd
when he shall cease to b e a n Employ ee f o r any r eason , except a s p rovid ed tn
Sect i o n J o f Arti c le IV h er eo f.
250p : 7 III -2
ARTICI,E IV
Cr edit ed Service
Section 1. Credited Service. Credi ted Se rvlce shall be used to determine
11. Membe r 's Accrued B,mef it and el igi b ili ty fo r beneflt :1 un .:er the Plan. A
Mr•mb c r's Credited Service ls the elapsed t ime pe ri od from his d ate of
1:mp l oyment with the City, as an Eniployee, t o his date of termination of such
employment, except as provided belo'w.
Sect ion 2 . Limitation on Gredlt-ed S v
a. Ho period o f Credi ted Service shall be deem ed to be inc r eased or
~;,.tended by overtime.
b. Credited Serv ice sha ll not inc lude any peri od of time during
whi c h the Mem btr i s on an app r o v ed Leave of Absence or interru pt i on o f
Se rvic e as prov ided in Section 3 of Article IV hereof .
c. Per iods of employ1i1ent \rw'lt 11 t he City prior to the date t h e
Employee became a Member shall not be inc lud ed as Cr ed ited Se rvice unle ss
the Empl o yee elected to become a Member of the Plan o n January 1, 1970
pursua nt to Section l of Article III here::>f.
d . Crettited Service s h11.ll n o t in c lude any perlod o n the basi s of
which a Retir ement lJen ef lt is paya ble under any other defined benefit
ret ireme n t or pen!lion plan to which the City made contributions, other
than benefits payable und e r the federal Soc ial S ecurl t) ,\ct or t h r
Volunteer f'lr efigh t ers ' Pension Fund.
e. Cred it ed Serv ice s hall not inc l ude any period of time f or wh ich
the Cl ty contr ibut es on beha l f of an Exempt Employee to the I CMA Plan or
any othe r optiona l deferred c o mpensation plan in li eu of this P lan, as
pro vided in Sec ti on 2 of Artic le III hereo f.
f . Cr ed ited Service s hall not be ext ended beyond a Memb er's date of
terminati on fo r lump-!l um payments in li eu o f accrued vacation, sick leave
or personal leave.
Section 3. Bre11k tn ServlsJ:. A Member shall incur a Break i n Service 1 f
ht s Serv i ce ,s an Employee terminates anC: he docs n o t return to Serv i ce as an
Employee with i n twelve (12) months of the date s u c h Scrvt ce terminated .
250p: 8 IV-1
I
The Retiremt!n t Board s hall h a ve the pover to determine when a 13 :·eak in Se rvi ce
s hall ha v e occ urr ed, and s uch det e rmination s hall be mr dr In a nondlscrlml -
1111,t o ry manner.
The follo wing shall no t be cons i der ed a Break t n Se rvi c e:
a. A temporary lay-off bec aus e o f an illness o r f o r purposes o f
c conomv, :.,usper,'l lon , or di sm i ssal , follov e d by death, o r reins ta t em e nt,
r e empl oyment or r eappointment v l t hln on e (1 ) year.
b . A f ormnl Le ave o f Absence, duty approved by lhe Ci ty Mnn age r fo r
a s pec i fi c peri od, f o llo\Jed by d ea t h or by rel n 9tatement , r e employment or
r e appointme nt wi thin thirty (JO) day s after te r mi nati on of the Lea ve of
Ab se n ce.
c. An y Employee o r any Member who l s on a Leave of Abse nce on
a cc ount of e n te r ing Into t h e milit a ry se rvice of the United State s
( I ncl u d ing s erv i ce In the Unit ed 5 t a t es Merchant Ma rine in time o f \JlH)
shed l, ln the .:.~..;e n ce o f r eason a bl e jus ti fication f o r a dditional de l ay ,
r et u1 n to the Serv i ce o f th e Ci ty within ninety (90) days after t ht t im e
wh e n !II J 1scharg e fr om s u c h mili tary s ervice was fir st avail a b le to .. u c h
Em pl oyee. I n the event t h a t a Member or Employee does n ot retu rn to the
Servi c e of t he Ci ty within the ti me spe c ified above, s uch Le a ve of Ab s ence
s hall be con s i de r e d a Break In Se r v i ce.
d. The pe r i <..d during a ny Leav e o f Ab sence or i nte:-rupt i on n f Se r v i ce
s h all not h owever , be i ncluded i n Credited Serv i ce.
Aft e r January 1, 19 87 , i f a ny fo r me r Membe r (vested o r nonv ested) r eturn s
to Service as a n Employ ee \Jlth in five (5 ) yea rs after hi s d ate flf termi nation ,
o r If a f ormer Ves t P.d Membe r r e tu rns to Servic e as An Emp l oye e a ft e r s u ch five
(S) years but wi t hou t r e c e ivi ng a ny s i n g l e-s um payme nt h ereun de r , th e n
11.ppllcable p ri o r Cred i ted fe r v i re s hall b e re stored. Oth e rwi se such p ri or
Cr ed i t ed Serv i c e s h.-11 be perman ently l os t , subject to t h e furth e r p r ovis i on s
of this Sec ti on 3. I f a ny s u c h r eh ired Member , ""ho had r e turnE:d t o Servlt JS
a n Employee within fi ve (5) y ears after t h e date o f t erm inAti on, had r ece l vt:d
a s ing l e-sum payment In li e u o f Re ti reme nt Bene fit s , an act u aria l r educt i on
s h al l be made In his Reti r ement Benefi t s under Sec ti on l o f Article XV I h e r eo f
unl ess h e repays t h e Fund within t \Je nty -!01..~ (2 4 ) mon t h s of r ehi re, s uc h
JV-2
250p:9
s ingle-sum amount , with interest at the rate determined under Section 2(c)(2)
.,f Article II hereof (int erest rate as sumpt ion for 9ingle-sum payments) from
the date the Member r ecei·,ed the pa yme nt to th e date o f repayment.
Memb e rs o f the Plan as of Januar:; 1 1 1987, who ._.er e r:-ev i ously covered by
the Plan but, due to a p r ior termination of employme nt, rece iv ed s uch a
single-s um payment, a nd \Jere then r eemployed by the Clty r ega r dless of the
t i me hat expired between their terminat!on d ate and re employment date, s hall
hav e un t il Ju ]y 1, 1989, in order to e l ect to r e pay suc h s ingle-sum amount and
thereby nvotd Buc h actuarial reduction. The amount t o be r epaid s hall be
Clllc ul ate d 8S set forth and must be r ep8ld by Jul y 1, 1989.
Any former nonve sted Employee who r eturn:J to Serv i ce as a n Employee more
than five (S) yea r s aft e r hls date of terml nn tion a nd wh o l s a Mem ber o f the
Plan as of January 1, 1987, s h all have until Se pt ember '30, 1987 to make
written nppltcatlon t o the Retir :me nt Board to have his p-t or Credit ed
Se rvi ce , if any, r esto r ed . The Retirement Board sha l: reviev such app li cat i on
and s hall determ i ne on a n ondi scriminato ry bas t s , whethe r such p ri o r Credited
Serv i ce s h a ll be r es t ored , and shall inform the Member of its determinat ion by
neccmbe r 3 1, 1 987.
Sec ti on 4 . Effect of Other P}nns. Cred i ted S•.!rvi ce s hall n o t includ e any
pe riod o n the bas i s of which a Retirement Be n efit i s paya ~le un der any other
defined benefi t r e tire ment o r pension plan t o which the Clty made
co nt r l but i ons, othe r than benef 1 ts paya b le unde r the Fede r a l So cial Secu rit y
Act or the Volunte e r Firefighters' Pension Fund. Credited Se rvice s hall not
include any period of time for which the City contributes on behalf of an
Exempt Employee to the ICMA Plan or any ot h e r op t ional defer r ed compensati on
plan In li e u of thi s Plan, as prov id ed In Sect ion 2 of Article III her eof.
IV-3
250p: 10
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Se ct i o n 5. Ml sc ellaneovs . No peri od of Credited Se rvlce ahn l l be deemed
t o bt: increased by overtime . A year of Cr edited Se rvi c e s hall be given for
ea c h three hundred sixty-five (365) day per i od , oeg lnning 'J ith the fir s t day
o f empl o yment , 'Jhlch elaps es while the Employee l s entitled to Se rvi ce Credit
unll1•r the above provisions of Article IV h e reof.
250p:ll IV-4
Th i
na •
tc
•1
c,
sl
u:
AB.IillLY
Coo tribut tons
Section l. Membe r Contributions. Effective January l, 1976, n o Member
vlll be r equi red or permitted to contribute to the Plan .
Section 2 . CitY Contributions. The City vlll, from time to time and at
lea s t annually, ma ke contribution9 to the Trust ~·und to the exte nt ne cessa.ry
to Clnance the benefl ts provlded by the Plan on " sound actua ri al basis . The
City expects to con tinue s uch contribut i ons to the Plan, but assumes no
responsiblllty to do so and reserves the right to suspend or to reduce
contributions at any time.
Section 3. Al?R.iiClltion ot forfei.t.l!.uJ!. Any amount forfeited because of
the termination of employment o f a Member prior to his having acquired a fully
vested right to Retirement Benefits, bec aus e of the d ea th of any Memb er , or
for any other reason, s hall not be applied to inc rease the benefits Yhlch
would otherwise be payable to any other Member . The amounts so forfeited
shall be applied as soon llS possible to reduce the contributions required to
be made by the Cl ty .
250p: 12 V-1
I
ARTICLE VI
Retirement Dates
Section 1. Normal Ret irem~. All pe r ma nent, full -time Employees of the
Cit y s hall b ecome one hundred percent (1 00%) vested u pr n attainment of their
No r mal Retirement Age and may retire at any time th e reafter .
The ef f ecti ve date o f retir ement und e r the provisi ons above shall be the
first d ay o f th e f i rst month following the mon t h in whi c h s u c h Empl oyee
a c tually retires from the employment of the City .
Sec ti on 2 . Earlv Retirement.
(a) Re &ul nr Early Retirement.: A Member or Vested Memb er who ha s
at tained the age of fifty-fiv e (55) years and has completed at le ast fiv e
(5) y e ars of Credited Service may ele ct to retire under Regular Early
Retirement and have benefit payments comme nc e as of the first day of any
ca lendar month, vhich shall not be le s s than thirty (30) nor more than
ninety (90) days after the filing of lirlt ten not lflutlon lilth the Retir ~ment Board.
(b) SPedal Early Retirement: A Me mber s hall be eligible for
Special Early Retirement as of the first day of any ca l e ndar month if hi s
employment terminates after he has attained the age of fifty -five (55) and
the sum of his age plu!l his Credited Se rvi ce at termination equals eighty-eight (88) or more.
S uch a Member may elect Special E11.r ly Re t irement upon the filing of
writ te n notification vith the Retirement Board nc.'t le ss than thirt y (JO)
nor more than ninety (90) days prior to the jate beneft t payment s are to comm ence.
Sec ti on 3 . .Delayed Retirement. Every Memb e r upon r each ing his
s ix t y -fifth (65th) birthday shall b e full y vested In the b e nefits earned pri o r
to s uc h date and shall be eligible to r eti re under the Plan . lioliever, any
Member eligible fo1 normal retirement may elect to delay his r e tirement date
a s permitted by the City Personnel Policies and Procedures . Hts delayed
r e tirement date shall be the first day of the month , coincident with or n ext
following the date of his actual retirement, As a condition precedent to
250p : 13 V!-1
continuance i n emp loym ent beyond the ?fo rma l Retirement Date, the Membe r shall
f ile ..,.1th the Retirement Board the 'Jritten des ignation o f a Be nef iciary ,
wh e th e r or n o t the Mem be r elects an optional b enefi t in accordance wl t h
Art t c h VIII hereof.
Sect i on 4. P ls abllltv Retirement, Any Membe r 'Jho b d i s abl ed purs uant to
Sect i on 2(k) o f Arti c le II her eo f s hall qualify for Disability retirement AS
provided herein . Paym ent of a Disability Retirement Benef i t s hall commen c e on
the first day o f lhP month next following his Norma l Reti r ement Date. The
l1'st payment shalt be made as o f the first day of th e month in 'Jhi c h the death
o f the Retired Member occurs o r h i s Oi !la bllity cea!les , whi chever first
o c ru rs. If Olsablllty ceases on or af te r the Member's Normal Retiremen t Date
and he d oes not re turn to full -ti me employmen t 'Jith the City, his Di sa bility
Reti rement Ben e fit shall be continued in the same manner as if his Di sab ility
had cont 1 nu ed.
If the Retired Member's Disability c ea ses prior to hi s Normal Retireme n t
Date and he ls not reemployed by the City, and if he had met the requirement s
f o r an ea rly o r defe rred ve s ted Retireme nt Benefit on the date of his
ret irement fr c,m Disability, h e shall be e n titled to rec eive , commencing on the
fir s t day of t h e month n ext follo'Jing hi s No rmal Reti r e ment Date, a Retirement
Ucnefi t e qual to the early or d e ferred ves ted Ret irement Beneflt to 'Jhlch he
woul d have been entitl ed , as o f the dat e of hi s disablement. Such Ret1rer .. ent
l\enef it to be calcu l a t ed s hall con::dd e r the Cred ited Service h e \lould h ave
re ce ived during the period of his Disability. If the Memb e r requests the
comme ncement o f hi s early or deferred ve s teU Retirement Benefit as of the
fir st day o f the month next following his fifty-fifth (55th ) birthday, or as
o f the fir s t day of any s ubsequent month which precedes his Normal Retirement
VI-2
250p :14
I
I
Date, hi s Retirement Benefit s hall commence as of the beginn ing of the month
so requested, but the amount t h ereo f shall be reduced in acco rdance ._.1 th
Sec tion 2 o f Article VII hereof based on the number of years by wh ich t he
starti ng date of the Retirement Benefit payments precede th e Memb e r's tl ormal
Re t I r ~me 11t Date .
If Dtsabillty ce a9es b efo re a Re tired Memb e r attains ht s Normal Retireme n t
Date and the Member l s re employ ed by the Clty, th e Retirement Benef it payable
up on his s ubs e quent retirement s hall b e determ ined In ac co rdance with the
prov ision s of Section l of Arti c le VII here o f incl ud ing Cr ed ited Service fo r
the period that he va s d i sabled .
No twith s tanding any other provision of thi s Sec tion, no Member shall
qualify for a DisAblllty Retirement Benefit if the Board determines that his
di sa bility res ults from an a dd iction t o n a r cot ics o r nallu c inogenlc drug s , an
injury suffered while engaged in a fel on ious o r c riminal act o r enterprise, o r
se r vice in the Armed Forces of the United States which e ntitles th e Memb er to
a veteran's disability pension,
Disability under the Plan shall be considered total a nd pe rmanent I[ It l s
determined by the Board that the Member is eli g ible and receiving disability
benefits from the long-term disability ln .5u ranc e contra c L maint a ined by the
Cl ty.
Di s ability s hall be conside r ed to have end ed if, pri o r t o hi s Norm al
Retirement Date, the Member i s no longer eligible for benefits fr om the long-
term disability insuranc e contract ma in tain e d by the City,
Sec tion 5. Limitation on Distributi on of Ret iremen t Be nefits.
Notwithstanding any other provision of this Plan, distribution of benefit s
under th i s Plan shall commence not lat er than April l of the ca lendar year
250p :15 Vl-3
f ollo...,in g the later of the calenda r year in 'Jhi ch t he Membe r attains age
3 eventy an.1 on e-half (70 1/2) o r the c alendar yea r in whi ch the Memb er
r et ires, unl ess an e x emption t o Inter n al Rev enue Code Sec ti on 40 1(a )(9) ls
granted by Fede r a l Statute or Regu la tion s f o r government plans .
V!-4
2S 0p :1 6
I
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ARTIC LE VII
Re tirem~nt Benefits
Sect i on 1. Normal o r Del11yed Retirement. Up o n re tir ement at o r afte r his
fb rmnl Retirement Date , each Ret i red Member s h all re ce i ve A mont h ly Retirement
Be n ef i t eq ual to one and o n e ha l f perc ent (1 1/2¼) of the Me mber's Final
Avera ge Mo nthly Compensa ti on multiplied by the tote:1. number o f ye ars
(i ncludi ng fra c tional years) of t he Member's Credited Servi ce.
Section 2. EarlY Retir ement-
(a ) Re gula r Early Retirement : A Member or Ve sted Memb er, eli gi ble
f o r Regular Early Ret i rement a nd retiring prior to hi s Normel Retir eme nt
Date, shall be e nti t l e d to a reduc ed Ret irement Benef it which s hall b e hi s
Ac crued Be nefit o n his Reg ular Ea rly Re tireme nt date, reduced by on e
f o urth of on e perc en t ( .25'X) for each month by tJhich the payment commences
pri o r to the first of th e mo n t h following his Normal Ret irement Date.
(b) So ec ial EarlY Retirement: A Member tJh o meets t he requirement s
for Special Early Retl r emen t sha ll r eceiv e a mon thly amo un t computed a s
f o r a No rmal Retireme n t Be nefit consiJ e rlng ·hi s Credited Se rvice to th e
dat e of hi s actual Ret ire me nt, paya ble vlthout reduction for early
c ommencement.
Se ction 3. D1sab1litY Reti remen t. A Member who me e ts th e requi r ements
f o r a Disability Retirement Benefit as a resu lt o f rec e iving payments from the
C lty's long-term disabilit y lns u r anc e co nt ract s h a l l re celve a monthly am ount
comm en c ing o n the first day of th e month next folloving his Normal Retir eme nt
Da te and computed as for a n orma l r e tir eme nt und e r Sec tion 1 of Article VII
h ereo f, c onsidering his Final Average Mo nthly Compensation a t the date of hJ ~
retireme nt fr om Disability and Credited Se r vice f o r the period he rec e i ved
long-term disability beneflt .::1 from the City's long-t erm db,a bility insurance
contra ct .
Section 4. De lay e d Retir ement. A Member retiring s ub seq uent to his
Normal Retireme nt Date shall receive t he .nonthly Retirement Benefit comp uted
VIl-1
ZSO p:17
unde r SecLi on l of Ar ticle VII hereof cons i de ring hi s Final Av era ge Monthly
Compe n sat i o n at t he da te of his act ual r ~Liremen t a nd t he Credited Servi c e he
a cc umu la ted. to t h e date of hi s ac t ual r et i reme n t.
Sect i on 5. Norma l form of pa ym ent, Un less op t l on11l b e nefi ts ha·,e been
e le ct ed pursuant to Article Vlll h e re of , t he basic month ly R'?t lrement Bene fit,
computed as ;e t fo r t h a bove , sha l l be a ten yea r ce rtain and life beneflt.
Su ch bene flt s h n.11 be t n equa l mo nthly pR ymen ts commen c 1 ng on the fl rst day o f
the month next f o llowing the retir eme n t date , nnd continui n g at monthly
int erva ls for a p eriod of one hundred nineteen (119) a ddit ional months and f o r
the Ret ired Member 's life t ime t h e r eaft e r. The las t hcnef i t payment shall be
made on the fir s t day o f the month of the Retired Mem ber's deat h, unle ss
paymen ts h ave b e e n made fo r fewer than one hundred twenty (120 ) months , in
'J hi c h event payme n ts s ha l l be conti nued to th e nam ed Rcne ficlary, ceas ing 'Jhen
a n aggr egate of one hund red tventy ( 120 ) monthly payrr:e nt s h ave been mode to
the Ret ire d Me mber and hi s Beneficiary. ff the Retir ed Member i s married at
th e time benefits a re to commence, the spousa l con se.1 t requir eme nts of
Sect i on 1 of Articl e VI II h e r eof mu s t be met before paym ents under thi s
Sec t l on comme nce .
In the event that n o Be ne fic i a ry l s living at th e death of s uch Retired
Member , the Actuarial Equivalent value of the monthly ins t li llme nts for the
ba lance of the term cer t a in vill b e compu t ed and paid in one s um to the estate
of t h e Ret ired Me mber. If at th e dea th of the las t surv iving Be neficia r y
follo wing the death of the Retired Memb e r, monthly ins t allments have not yet
bee n paid fo r the term certain, t h e Actuaria l Equ i va lent value of t he
installments for the balanc e of the te r m cer tain vill be computed and paid in
one s um to the estate of the last s urviving Benefic iary.
VJI -2
250p:1 8
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I
I
As provided by Secti on 2 of Article XVI hereof, Retiremen t Benefits may be
suspended for a Retired Member during a period of emp l oyme nt subsequent t o hts
a c tual retirement date during ..,.hic h he ls rehired and re c ei vi ng Compensati o n
a!I an Empl oy ee of the City. Monthly pAyme nts sh.!!.ll commen ce and be determined
pursunnt t o such Section 2 of Article XV I h ereof.
Sect l a n 6. Ac cr ued Cr edi t 9_jillg_V er.ted Benefits Uncter the Previou s Plan
~-The restatement of t h e P re vi o u s Plan by this Plan shall not
ope r ate to e x cl ud t!, diminish, limit o r re stri ct the paym e nt o r con ti nuati on o f
payment o f benef its accrued as of December 31 , 1986. The amount of such
Previous Plan benefits, if any , in the co urse of payment by the Trust ee under
1H1ld Previous Plan, to an:, person on December 31 , 1986, sha l l be contin ued by
the Trustee under the Trust Agreem ent form ing a part of this Plan, i n the same
manner , undimini s h ed , preserVl'd, and fully vested unde r th i s Plan.
The eligibi lity f o r, and amount of, any benefit of any klnd, payable
c onvnenclng after December 31, 1986 under thls Plan to o r for any person \,/ho
was a member of the P revious Plan and \,/ho became a Member of thi s restated
Pl an as of Janu ary 1, 198 7 , sha ll be de te rmined under the prov l .!1 ions of this
l'l nn.
2 50p : 19
ARTIC LE VIII
~l Fo rms or Benefit!!
Section 1. ~-Su bjec t t o s u c h uniform rule9 and regulation s IHI the
Ret ir emen t So ard may prescribe and the r est ri c ti on s cont11.lned in this Arti c le
VII I h e re o f , a Membe r or Vested Mem be r may, in li e u o f the bns i r. Re t ir eml'.'nt
Benefits provided in Arti c le Vl 1 hereofi el ect one o f the fo llowing f o rm s of
Retirement Benefit s whi c h s ha ll be the Ac tu a rial Eq ui va lent o f the benefit to
whi c h he wo ule1 oth e rwl !J c b e en ti t l ed. The Membe r or Ves t ed Membe r must take
a ny electi on o f a n opt i onal b en efit l n wri t i ng , and s uch e le ct i on mu s t be
fll ed .,d th the Retireme nt Board at l e as t thirty (30) days prior to the due
dt1te of the fir s t payment of Re t i reme nt Benefits under the Plan . The ele ct i on
o f an o ption ma y be c hanged a t a ny time pr io r to thirty (30 ) day .'\ .,ir eceding
the d u e d ate o f the first payment o f Retlr r:mcnt Benefit s unde r the Plan .
Jl o'w'eve r, an optional form of payment rr. J not U~ elect ed unless the v alu e o f
the payments expe c ted t o be paid to the Member exceeds flfty p e rcent (SOX) of
the va lue of the total bene fit s to be paid under s uch optional form.
Sec tion 2. Qualified Joint and Survl vo r nen efi t 0otion. The Qual ified
Jo int nnd Survivor Be~1 eflt opt i on provides an a djusted mon th ly Retirement
nen flt payment du ring the Retired Mem ber 's llfe i 11 11d the !tpo us e (t o whom t he
Mem ber was married when hi !l Retirement Ben e fit commenc e d), if s urviving at the
Member 's d e ath, shall receive thereafter for life a monthl ~• Retirement Benefit
o f f ifty pe rc e nt (SOX) o f the adjusted monthly •mount paid • •J the Me mber.
With in a reasonohl e time before the Membe r's Retirement Benefit
commen ceme nt date h e r e under, the Re tireme nt Board sha ll provide to the Member
a \Jrltten explan a tion of the t e rms and conditions of th e Qua lified Joint and
250 p : 20
VI 11 -1
I
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Fifty Per c ent (SOX) Su rvi vor Be nefit set f o rth herein and the effect of
r e f us ing it. If on or after January 1, 19 8 7 1 the Empl oye e 1Jishes to e le c t a
f orm o f payment other than the Quali fled J oi nt and Survi vor Benefit (dc !J c rtbed
ln this Ar t i c le), such election 1Jill no t b e com e eff ec tiv e unles s his s pous e
(lt h e has a spouse 1Jh o can be l oc ated) co nsents In 1Jrlllng to s u c h el ect i on,
acknowledges the effect o f such elect i on and ha s such consent a nd
acknowledgment witnessed by a Plan r e pr esen tative o r a nota ry publi c . A
prope~·ly completed benefit electi on form (furni shed by the Ret i rement Board)
mus t be r e turn ed to the Retirement Board with in n in e t y (90) Jays prior t o the
Member's b e nefit commencem e nt date. If the Member fll e!J anot !1e r ele c ti on fo r m
11ftcr the earlier form and prior to his benefit CO IMlen ccme nt date, the earller
form s ha ll be annulled.
Sect ion 3 , lOOX Join t and Survivor Be oefit---2Q.UQ.n. The lOOX J oi nt and
Surv i vo r Be n e fi t option provides adjusted mo nth ly Retir ement Benefit payments
during the Retired Member's life, a nd up on his death aft e r r et ireme nt,
co ntinues payments in the same amo unt to a designated Beneficiary during t he
life of s u c h Beneficiary.
Section 4. SOX Jo int and Survivor Benefit Ootioo. The sax Joint and
Su r vivo r Benefit option provides reduced monthly Retirement Be n e fit payment !J
during the Retired Me mber's life, and , upon hi s death after retirement,
continu es payment in a n amount equal to one-half (1/2) o f the amount o f such
reduced payments to a designated Beneficiary during the 1 t f e of :rnch
Heneflciary , Payment shall be continued to the designat e d Heneft c lary f o r
I I fe.
Sect i on 5. Five (5) Yea r Cert ain and Life Benefit 0Ptl on. The rt ve (S)
Year Ce rtain and Life Be nefit op t ion provid es adjusted mo n thly Ret irement
250p: 2 1 VII l -2
Benef it payments du r ing th e Retired Mem ber's life, a nd upo n hi s death l\ft e r
retirement \llthin t he sixty (60) month peri od , pa yment s s hall be continued to
lhf' des ignated Benefici a ry for the ba lance of t h e s ixty (60) mont·1 pe ri od.
Sec tion 6. IJ..[ctime Benefit Option. The Lifetime Be n efit o pti on provides
in cre ased mont hly Retir e ment Benef it pnyment s duri ng th e Retired Membe r's life
wit h no continuati ons of payme nt afte r his death.
Sec t lon 7, Qe nefi c iary. The Mem be r or Vested Membe r may de s igna te tn
•J rltln K n n hi s Bcnef l cia1y , his s pouse o r any o f hi s c hl l dren , either naturn l
o r ad o pted, par e nts, brothers or sisters. If on o r lifter Janul\ry 1, 1987 , 1.1
Married Member or Vested Me mber wi9hea to deslgn1ne someone oth e r than hi s
~1po use to b e a primary Beneftc iary (or wishes to continu e I after Jt1nuary t ,
1987 1 su c h a designation made prior to January 1, 1987), such designt1tion will
no t become (or continue) effect ive unle:rn hio spouse (if his spou:ie ct1n be
located) consent s In wri .tin~ to such designation, acknowledges the effect of
s uc h des ignati o n and h a s !.UCh con sent and ncknowledgment witn essed L)' a Plan
r e pr esent at ive or a n o tary pub lic. Such d es lgnntion shnll be mnde in writing
upon a form provided by the Re t l c eme nt Hoard and shall be fil ed with the
Reti rement Uonrd. The last such designation filed with the Retirement Board
s hall control. If the designated Beneficiary dies prior to t he due date of
the first payme nt of Retirement Benefits under the Plnn and no new Benefici a r y
h o!l been d es ignated, Retirement Benefits shall be paid as though no optional
benefit had been elected, a s provided in Section 5 o f Article IX hereof . If
n o Benef i ciary is des ign ated by the Member, th e Member's !l pous e s hal l be
d eemed t h e d es ign ated Ben1 ficiary .
Se ction 8. Minimum MonthlY Pavments, If the monthly benefit to which any
Membe r, Vested Mem ber or Beneficiary nhall b ecome entitled under the Plan
VJll -3
250p:2 2
I
shall be les9 than o ne hundred dollar9 ($100), the Retirement Board shall have
the right to dlrect that the Actu a rial Equivalent of such benefit shal l be
paid l n a lump s um or ln insta llments at suc h Interval s as Yill res ult tn each
payment nm o untlng to at least one hundred dollars ($100).
250p: 2 3 VIII -4
ARTI CLE lX
Pe a t h Bene fl t s
In the ,•v ,~11t n 11 0 11v e!l ted Membe r c-f th e Plan di e !J prior t o h ls earl y re ti r ement
tllltC , tlH!f l' s hall be pai d to th e 13e nefi c tary des ignated b y him, if said
l\tnef t c t a r y 19 ltvtng, o th e rwi se to the Mem b e r's e s tat e , th e am o u n t of h is
Acc umu!ate1\ Contributi ons ns o f his dat e o f death plus tw o percent (2 ¾) o f the
Compensation rece i ved by him :rnbsequent to De r.ember 31, l <J 7 5 a nd pri o r t o
J nnu11.r y l, 1983.
Sec t t o n 2.
llnte . If an a ct ive Ve sted Member or di sa bl e d Member die s Afte r c ompleti ng
f t ve (S ) or more years of Service, the s urviving spouse shall r eceive fifty
per c ent (SOX) of the Member's Accrued Benefit for one hundred twenty (120 )
month!J cer tain and Ufe the r ea fter. If the Member is n o t su rvi ved by a
s pou!:le, his designated Beneficiary shall receive flfty pe rcent (SOX) of thr
Membe r 's monthly Accrued Benefit ror one hundred twenty (1 20) mo nths certain,
o r lf earlier, until the death of the Be n e ficiary. The pa yment to the
!rnrvlvlng s pouse o r designated Beneficiary will commence on the fir st day o f
the mor,t:h follo\llng th e date of the Member's death , or if later , the date the
Member \IOUld h ave attained age fifty-five (SS).
Sect i o n 3. De ath of an Ac tive , Vest ed or D\snbled Mem be r Between Earl ?
a nd Norma} et\rement Oates . In the event an active Member, Vested Member or
Ll i sabled Member o f the Plan die s sub!ieque nt to his early retirement date and
pri o r to h is Normal Retirement Date, the follo\llng death benefit shall be paid:
a . If the Member has a survl •llng spouse, fifty percent (SO¾) of the
monthly Accrued Benefit by the Member prior to death s hall be payable to
250 p : 24 !X-1
I
I
t he spouse for on e hundred tw e nty (120) month s cen nln and l l fe the r e-
afte r. However, if the :lpouse is more than five (5 ) years y o unge r than
the Member , t he monthly be ne fits wi 11 be r e du ced by one irnd one-half
pe r ce nt (1,5¾) for each yea r that their difference In age n e xceed five (5 ) yea r s.
b. If the Membe r is not survived by a s pouse, a death ben efit equa l
l o fl fty pe r cent (SOX) o f the monthly Acc rued Bene flt o f the Memb e r at
d1 •ftt h ~hall be paid to the Benefi cia ry designa ted by the Memb e r for a
pP ri od of one hundred t\o'enty (12 0) months. If the Me mb e r Is not surv i ved
hy n designated Beneficiary, the one hundred tw e nty (120) monthly paym ent s
."J hall be com puted and paid In a s ingl e s um to the Membe r 's es tat e .
Sect i o n 11 . v e embe Be t w
~~~-Jn t he event a Membe r continues in Ci ty em pl oyme n t af ter
hi s Norm al Ret ir ement Date and di es befo re actua ll y r e tiring, then h i! shall be
deemed to have r eti r ed on the first day of the ca l e ndar month in '-'hlch he
dies . If n o ot h er f o rm of payment h as bee n ele c ted, the Membe r's monthly
Ac c rued Be nefit s hall be paid to hi s Be11e f .'c lary for on e hundred t 11e nty (1 20)
mo nths. I f t he Member f s not surv 1 vcd by J nene fi r. i a ry, the one hundred
t..,.enty (120) mo nt hly paym e nts s ha ll be computed and pai d in a s ingl e sum to
t he Memb e r's estate. If an op tional form o f payment has been elected, the
death ben ef it, ff any, shall be determined by the option elec ted.
Sect i o n S. Death of a Retired Membe r o r Benefi c iary. In the event a
Netirert aember o r Beneficiary dies 11hlle receiving Ret l,ement Ben efit pay -
me n ts , h i s death benefit, lf any , will be determined by t he torm of Retireme n t
Bene fit be ing paid. Up on the death of the la st to di e of a Retired Memb e r o r
h I s Bene f I c I ary , If the total of the payments made to the Ret I red Member and
hi s Beneficiary Is less than the amount of the Accumulat ed Co ntributi ons of
the Retired Member at hi:-Retirement Date, t h e diffe r e n ce s hall be paid In a
!ltngle sum to the estat-! of the last to die of the Retired Memb e r o r h i s
Be neficiary. In the event tha t no Beneficiary I s livin g at the death o f s uch
250 p: 25 IX-2
Retired Membe r, the Ac tua ria l Equi val en t va l ue o f th e mon t h l y i n s t allmen ts for
t h e balanc e o f the term ce rt a i n wil l be com put e d and pa i d in on e sum to the
e state of t he Ret ire d Memb e r . I f at the de a t h o f the l as t surv i v ing Ben e f i -
c ta ry foll owi ng the d eath o f the Ret ire d Mem ber, mo nthly ins t al l me n ts h ave not
ye t bee n paid f o r t h e t e rm certa in, th e Ac tu a rial Equiv a l e nt v a l u e of the
1n!-3t allm en ts fo r t h e balan ce o f t h e t erm cer ta in \dll b e c omp u ted a nd pa i d in
one s um to th e es tat e o f the la s t s urv i vi ng Be n e fi ciar y .
Se c ti o n 6 . P1wmeot of Deat h Ben efi ts . Pa yment o f d eatti b enefits und e r
th is Arti cle s hal l comm e n ce , o r be made , as of the fir s t o f the mon t h next
f o l lowing the d eath o f th e Me mber or Benefi c iary.
Sec ti o n 7. Un i fo r m S im ul t an e ous Death Ac t. Th e prov i s ions of a ny S t a te
law pr ov i d ing f o r th e d i s tribu t ion o f e states und e r the Uni f o rm Simultaneo us
De ath Act , when ap pli cab l e , s h a ll gove rn the di s tribut i on o f death benefi ts
paya bl e und e r th is Pl a n .
IX -3
25 0p : 26
~
Severan ce Benefit~
S ec tion 1 . ~-Be nefi ts shall be paid to a Member under Articl e X
h e reof 1 f his empl oyme nt t erm ina tes for r easons o th e r than retir em ent,
Dt 1111bi 11 t y o r death.
Sec ti o n 2. Les s tha n FJve CS) Ye 11 r;z of Credi ted S e._~. S ho uld a
Memb e r 's empl oyment wi t h the City t e rminat • f or reasons o th e r than ret :rement ,
Disa btll ty o r d eath pri o r t o h!s Uo rma l Retirement Date and pri o r to h is
completi on of fiv e (5) years o f Credit ed Se r v i ce , the only be nefit to wh i c h he
Bhall be e nt itled under t hi s Plan s ha ll be:
a. The amount o f h is Accumulat e d Co ntribution s, t r any, plus
b. T1Jo percent (2X) of the Co mp e nsation rec eived by the Mem ber
s ubsequent to Decembe r 31, 1975 and prior to Januar:, 1, 1983.
Sec tion 3. five {5l or More Years of Cred ited Servl ,t . Should a Memb er 's
em pl oyme nt with th e City terminate for reasons othe r t han retirement,
Disab ility o r death prior to hi s No 1·mal Re tir ement Date With fiv e (5) or mo re
years of Credited Servi ce , he may e l ec t either:
a. To leave his Accumu la ted Contribution s o n depos it in the
Ret ir e me nt Fund and become a Ves t e d Me mbe r i or
b. To receive, in lieu of a ll o ther ben ef it s, a refund of hi s
Accumu lat Pd Contributions plus two percent (2X) of the Compensation
received by him subsequent to Decemb e r 31, 1975 and prior to January I, 1983.
If s uc h a Member falls t o e l ec t el ther o f the above w! thin ninety (90)
days after his date of termina tion fr om the Plan, then he s h a ll be deemed to
li ,w e elected Lo leave hi s Acc umulat ed Con tribution s on d epos it and becom e a
Ves ted Membe r, A Ves ted Membe r s hall be e ntitled to a d e ferred Retirement
Be n efit whi c h shall be one hund red perc e nt (100¾) of hi s Accrued Benefit on
25 0p:2 7 X-1
the dat e o f h l s t e r mi nati on o ! me mber s h i p in the Plan . Su ch de f e rred
Ret i r eme nt Bene fi t s hall commence on t he fi rs t day o f the n e x t mo nth fo l l owing
the Ve s t ed Mem ber 's No rmal Ret ireme nt Dat e .
I n 1 i e u o f r ecei vi n g, t h e defe r r e d Ret i r eme n t Be n e fit u pon h is No rmal
\.:l't lr eme nt Ua t e , th e Ve:n ed Memb e r ma y e l ec t t o re c eiv e a reduc ed Re ti r ement
Be n e fit be g\nn l ng upon the fir st o f any mo nth s u bs equ en t t o h ls att ainme n t o f
a s e fi f t y -f ive (55). The r educ ti on sh a ll be on e -fou r th o f one p ercent (.2S 'X )
f o r e nc h mo n th (thr ee pe r c e nt [3'X ] pe r yen r ) by wh i ch payme n ts c omm e n ce p ri o r
t o t h e flr :jt o f t h e mon t h f oll owing hi s No rma l Re t i r eme nt Dat e .
A Ves ted Me mb e r ma y e l ec t at a ny ti me p d o r ta hi s No rmal Ret irement Da te
t o r ece i ve , i n li eu o f a ll o ther b ene fit s unde r t he Pla n a nd pr ovid ed ben e fit
payme n ts h ave n o t ye t comm e n ced , a r e fu nd of hi s Accumul a ted Co nt ri bu t ion s , l f
11.ny, as o f the da t e o f th e r e f un d plu s t wo pe r c e n t (2'X} o f hi s Co mp e n sa ti on
r ece ived subs e que nt t o De c em b e r 31, 19 7 5 and p ri o r t o January l, 19 8 3.
X-2
250p:28
ARTICLE XI
Adminis t rati on of the Plan
Sec ti on l. Retirement Bo a rd. There i s here by c r eated a bva rd t o be known
as t he "Re t irement Boa rd of the City of Engl e 1Joo d ," whi c h s ha ll be composed o f
S('Vrn (7) memb e r s . One (1) memb e r s hall be a n e l ec t ed member of the City
Co 1111 c il wh o s ha ll b e se l ected by a maj o rity o f the me mb e r s o f City Coun ci l .
One (1) member sha ll be th e Dir ecto r of Finance appoi nt ed by the City
Manager. Tw o ( 2 ) membe r s s ha 11 be cmpl oyees of the C 1 ty who a r e Memhc r s of
the P lan, wh o s hall be se l ec ted by a vote of 111 s u ch Memb e r s in ac co rdanc e
with s uch proced ures a s the City Man age r may a dopt , fr om time to t ime . Th r ee
(3) mem be r s s hall be taxpay ing electors o f the City wh o s hall be sel e c ted by a
mnJority of the members o f t h e City Co un c il. In additi on , the City Ma nager,
o r hi s des lgne e , shall s erv e In an advi so ry capac ity, a s a n ex o ffi c i a l,
nonvoti ng membe r.
Memb e r s of th e Retir eme nt Boa rd sha ll be appo inted for four (4) year
te rms, p r ovided the sa id mem ber co ntin ues to posses s the qu alific ati on s
provided h e r e in during t he member's term and , fur t her provided t hat:
a. The Counc il member s hall se rve during hi s te rm of offic e as a CouncJ l member; and
b. The Directo r o f F inan ce sha l l s erve du r ing hi s tenure in of f lcc a s suc ll DI recto r of Finance .
Sho ul d a vacan cy occu r In th e mem ber s hip o f the Re t ireme nt Bo a rd, the same
s hall be fill e d for the du r ati on of the unex pired term on ly, in the s ame ma nn er
a s provided herein. Pri o r to e nt e ring upon th e performance of the duties of a
mem ber o f the Retir emen t Board , eac h memb er ther eo f s h a ll take and subsc r i be a n
o ath that he acc e pts th e o bligati ons imposed upon him by the provi s io ns of this
Pla n and that h e s hall faithfull y perform the duti es of s•;ch office.
250 p:l9 XI -I
f'lve (S) members of the Ret i r ement Board shall constitute a quo r um. All
acti ons taken by the Bo ard s h all b e approv e d by a majorlty vo te of a quorum of
Lhe Ret 1 cemen t Board me mb e r a. All a ct ions , deci s i on s and determt.n at I on s o f
Lhe Board sha ll be recorded In the minutes o f th e Ret i rement Bo ard and, unl ess
I n c on sistent wi th the p r ovisions of the Pla.n , shal l be binding and con clushe
upon al 1 interested parties.
No membe r of the Boa r d :;h all re c eive compensa ti o n for h i s serv i ce on the
Bo ard bul a member may be reimbursed for r easonable e xpenses inc urr ed in
c o11 11 cct l o11 wi th h is d utl P.!', ns a member o f the Coard.
Section 2. tkM..&tm.!illLl f the Plan. In add.it i on to the pow e r s and
obl lgation !l Impose d upon th1 Bo ard a s Trustee pur s u a nt to Sect i on 1 of
Ar ti cle XII hereof , the Ret i r ement Board s hall have al l powers necesna r y to
effect the management a nd a dm i ni s trati on of the Plan in accordanc e \JI th t t s
t ~rms , includ ing, but not li mi t ed to , t he fo l l owtnc :
a, To establi sh r ules and r egul ations f or t h e l\dministrat l on of th e
Plan , fo r managing and discharging the duties of t he Board, f o r the
Boa r d 's own government and proced ure in so d o ing, ,ind fo r t h e pr ese r vation
a nd the protec ti on of the Fund .
b. To interpret the prov i s ion s o f the Pla n and t o determine any and
a1 l que s tions arlsing under th e Plan o r in co nn e cti on 1,1ith th e adm lnl stra -
tlon t h e reof . A r e cord of such ac tion a nd all oth e r mfttters properly
com ing be fore the Bo ard s h a ll be kept a nd pre served.
c . To determine all matt ers affec tlng t h e eltgiblllty of any
Em ployee to be or become a Member o f the Pla n .
d. To d ete rmin e the am o unt o f the Memb e r '9 con tributions t o be
\.d thheld by the City in ac co .Jtmc e wlth the Pl a n and t o maintain such
rec ords of Accumul ated Cont ribu tions as a re n ec essary unde r said Plan .
e . To determine t h e Credited Se r v ice o f any Member and to com pu te
the amou nt of Re tir emen t Be nefit, or oth c?r s um, payab le under the Plan to
any J)e r s on .
f. To a uthori z e and direct a ll d i s burs em ents of Ret irement Benefits
and ot h e r sums unde r the Pl a n .
Xl-2
25 0 p :30
g . To e mploy s uc h coun se l and a g ent s and to ob tain such cl e ri c al,
medi c al, legal and a c tu a rial serv ~cc s as i t ma y d e em n ece s sa ry o r
app r o pri a t e in c arr:d ng out th e pro vi s i ons o f the Pl an .
h . With th e a d v i c e of its ar t u a r y to a do pt, f r om t i me to ti me f o r
pu rpo !.es o f the Plan, s uc h mo rtali t y and othe r tabl pc; as i t ma y d e em
nec e ss ary o r Appr o priate for t h e o pe r at i on o f t he Pl a n .
1. To ma ke o r arran ge f o r va l uat i ons and appr ai sals o f Fund asse t s
h el d under the Plan, a nd , wi t h th e ad v ice o f the ac tuary , t o de t e r min e t h e
I ia bi l l t l e s o f t h e Pl a n.
J. To h o ld a sse t ::i o f th e Plan in a s pe c ial acc ount e;itltled
"Retirement Plan fun d ," a nd inve s t a nd r e inve s t th e same and to make s uc h
wi t hdrn.wals therefrom a s are authori zed by the Plan for the payment of
Retir ement Benefits and t h, expens es of th e Bo ard and the mem bers ther eo f.
k. To create r e serves fr om s u c h as se t s fo r any purpo s e.
1. To maintain such r eco rd s and a c co unts and t o render s uch
f inancial stat eme nts a nd r e po r t!! a s may b e requlrt!d by '.he City Co uncl I.
m. To authori z e one o r mo r e membe r s of the Retireme n t Board t o sign
all legal docume nts and repo rt s on b e hal f of the Retir eme nt Board.
n. To perform such other duties ns ma y be requ ir ed of a Plan
Admini s trator und e r the appllca bJe law!l and regulations .
S t:.:►t on 3. Mi sce l1 1meo us . All prop e r ex pe ns e incurred by the Retireme1•t
rt,· 'd , l' •e administration of the Plan, If no t paid by the City, shall b<
Pn d irom the Fund when autho ri z ..:u by th e Re tir e me nt Board.
The Re tirement Board shall have no power t o add t o , subtra c t from o r
modify any o f the terms of the Plan, no r to c hang e or add to a ny benef i ts
pro vid e d by the Plan, nor to waive or fall to npply any re quirements o f
eligibility for Ret irement Benefits under the Plan.
A me mber of the Retireme nt e oard shall no t vote on any matter r e lating
so l e ly to h i mself or to his right s or b c n efl t s under th e Plan. If a Board
mem ber i s so di squall fl e d to act and the r ema 1 n ing memb ers c annot agre e , the
250p :Jl Xl -J
City Council shall appoint a tem porary substitute member to exercise all t he
po'Jers of the disqualified mem ber concern in g the matter in -which he is
disqu alifi ed.
The dec t s l on of the Retiremen t Board and any acti on tftke n by it ln re spect
to the management o f he Plan s hall be conclus ive and b inding upon any and all
em ployees, of fi ce r s, former employees nnd office r s, Members, Retired Membe r s,
Ve st ed Memb ers , thei r Ben efic i a ri es, heirs, dlstributees, executors,
admlni'ltrntors and assigns and upon all other per9ons -whom :ioe ver, but the
Uoard l\t all t im es shall act in a uniform and nond is c riminato ry manner.
Nf'I the r the es tabli s hmen t of this Plan nor any modificati ons thereof o r any
act i on take n thereunder or any omiss i on to act, by t he Board, the City Counc il
or any o f t h e ir members shall be construed a s giving to any Member or other
pe rson any legu.L or equitab l e righ t against the City or any officer o r
employee thereof or against the Retirement Board, the City Co un c il, or any of
the l r members.
XT-4
25 0p:32
I
AR TI CLE XII
RetJ cement Pl nn I r u..u_[yng
S ec t t o n l. AP POin tm cot of trustee-Th e Ret lrea1 en t B0 1\f d o f th e C ity , n nd
t t s me mb e r s, ar e he r eby ap poi nt ed and c onstit ut ed Trus:-e e o f th e Ret i r ement
P l11 11 Fund a nd sha ll h o ld , man a ge nnd co n t ro l t he s ame t n a cc o r dance with th e
pr ov i s i on s h e r e in c on t a in ed,
Sec ti on 2 . Th e Tru s t fun d . All Ci ty a nd Empl oye e co ntr ibu ti ons a nd a l l
lnv e:Jt me nt .s t h t!r e of , t o g e th e r wi t h a l l a c cumul at i ons, acc ru a ls, earni ng s and
In come with r e s pect th e r e t o , s h a ll be h e ld by t h e T rus te e in trust h e r e under
IHI the Trust Fund for use In pro viding the b e n e fit s under t he Plan. Ho par t
o f the s a Id c orp us o r income s h a ll be used o r o r diverted to p urpos e s oth e r
t h a n th e e xclusiv e be nefit o f th e Memb e rs, Retired Members, Vested Members,
their Beneficiari e s or es tate s un d er the Plan, prior to the s atisfacti on of
all llabiltti es hereunde r with re s pe c t to them , e x cept suc h fund s whi c h, u pon
t e rminati on o f the P lan, a r e in e xc e ss of the amount r e quired to fully fund
th e Pl a n and are due sol e ly t o erroneo us a ctuarial assumptions. No person
s hall hav e any int e res t in or right to nny part of the a ss ets o f th e fund
e x c ept a s and t o the ext e nt ex;,re s s ly prov id ed in the Plan.
Sect i on J. Purp oses and Au t h o rity of t h e Tr uptee . It l s the purpo s e and
int e n t o f th e City in constituting and appointing the Retirement Board as
Tru s t ee o f the Trust Fund to give the Retireme nt Board full power to establi s h
suc h inv es tment o r p ur cha sing programs as t he Re tir ement Bo ard may deem n e ces-
s ary o r appropriate to provide as s urance that there sha ll be an adequate
so u rce f o r th e paym e nt of a ll be nefi t s provid ed he r e in. Th e Trus te e , howev e r,
250 p: 3 3 XII -I
shal l not be responsibl e fo r the co ll ecti on o f any Clty o r Employee
contr!butlo ns. In scrv lng a :i Tr u s t r e, the Retirement Board may dete r mine t o :
a. Use the Trus t Fu nd for th e purchase o f on e o r more gro u p annul t y ,
o r o ther, insu r ance policies f rom on e or more Ins ur a nce Companle!J
11ut h o rl zed to d o business \dthin t h e State of Co lorado , whe r e Ly sa id
Ins ur ance Com pany agrees to pay a.11 or a portion of the b e n e fit s h erein
prov lct r.d f o r; or
b , Co ntr act with a comme rcial bank , c h arte r ed unde r ei the r t he
st a tute s o f the State of Colorndo o r the Uni ted S t ntcs o f Am e rl c ~ a nd
do lnJ; bu s \nes:i ,d th ln t h i s S tat e , 'Jl th" trus t com pany o r gani zed pur s uan t
to ~.1e Sti,~Utes of the S tate of Colorado and doing bus ine ss within t hi s
.S t n r c , o r with a mP.mber of th e New Yor k Stoc k Exchange or the Am e ric a n
St e.·~ f:xch.:t.nge, d ?t ng bu si n ess wllhtn this Sta t e, to have any o f s uch
parties i nvest t 1 • ds on te hal f of th e Trustee; o r
c. l ·i:c-v 1. Inv es t the asset!l o f the Trus t Fund ; or
I . Eat ahlJ s h an investme nt program , pa rtly fund e d by lns urance And p,..r1-1 y l 'tr,i l r l'! by inv es tmentsj or
e. Re tain on a discretionary ba s t s a n investme nt advi so r li ce ns ed n!J
:rnch und e r t he Un ited StAtes Investment Ad vi !lo r's Act of 1940, which
investme nt advi !io r l s also an Invest me nt coun se l a s defin ed in sa id Ac t.
Sec ti on ti . In.~. In se rving as Trus t ee , th e Re tirement Board
9hnll b e aut hori zed and empowered, in its so l e di s cret i on, to invest and
reinvest the Trust Fund, without dist inc ti on between pr.n c lpal and income, in
sut•I• ,,, .. ;·.:non stocks , pr e ferred stocks , bond s , n otes, dr.b c ntures , mort gages,
ce rtificate s and othe r secu rit ies , investments , real or pe rsonal prope rty of
any kind , in c ludi ng purchase and lease -back tran s nctions , int erests in oil and
ot h e r d letable natural resources, inve stment in mutual funds (open-end o r
othe rw . -:_J as it may det e rmine, without regard to wh e th e r s u c h inv estment s may
produce cu rr ent lncomej provided, hovev e r, that sho uld t h e Retirement Bo ard
d e termine to make investments dir ectly, without an investment ma na gement
con tract with a bank, trust company inv es tment coun se lor o r sto c k e x c hange
mem ber, the n the following limitati ons s hall app l y:
250p: J 4 Xl!-2
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a. Th e "f.gregate o f moneys inv es ted i n corporate s t oc k of all kind s ,
togethe r \,d th moneys invested in corpo r a t e bonds co nv e rt lbl e to co r po r ate
stock., shA.11 no t exceed t h irty pe r cent (30~) of t h e book va lu e o f the
assets of the Trust fund bei11g d irectly inv e s t e d; and
b. No Inve s t ment ln t h e stock, o r conve r t ibl e bonds, o f nny sing l P.
co rporat i on s ha l l exceed f i ve percent (SX) of t h e boo k value of the as s et s
o f the T r us t Fu nd being d i r ect ly i nvested j and
c. At no time shall t h e Tr u st fund hold mo r e th an se v e n pe r cent (7¾)
o f t he o u t sta nding s t oc ks o r bonds of a ny co rpor at i on.
Sect i o n 5 . T r u 9 t ee's Po w s . S uhj e c L to t he provi s ion s of Secti ons J and
'• of Arti c le XII h e r f'o f, in its Inv es t men t and a dm i n i s tra t io n of the T r ust
rund, Lhe Trus te e !·1 alJLhorl zed and empo wer e d wit h respect to :my sec ur i ti es
o r ot he r pr op e r t y ht!ld In t h e Tr un t Fund:
a . To sell , exchange , convey, transfe r, l e a se f o r a ny peri od ,
p l edge, mor tg ag P., gra n t o p t ions , contra c t wl t h r espect to or otherwise
encumbe r o r d i s pos e t h e r eo f , at pu blic o r pr ivate s al e , fo r cas h o r u pon
c red i t o r pa r tly fo r both , a nd n o pe r son d ea ling wi t h t h e Tr us t e~ s h a ll be
bound to see t o the ap pli ca t i on of the purchas e mon ey or to inquir e i n to
t h e va lidi ty, expedien cy or p r o pri e ty o f a ny s uch s a l e o r ot h e r
dis pos it i on.
b . To s u e , defend, compromise , a r bit r ate, compo und and s et t1e any
deb t, obligat i on o r c l a i m due it as Trust ee or any o th e r s uit o r l e gal
proceed i ng Involv i ng tr1.: f ru s t, and t o rech1ce t he ra t e o f int e rest on, to
ex t end or othe r w'i s e mod ify , o r t o fo r ec l ose uron d e f a ul t o r oth e rwi se
e n fo r c e a ny s uc h d eb t, o bli ga t ion o r claim.
c . To give gen e r a l o r sp ec ifi c pro x i e::; or powe r s o f a t torney with or
witho u t powe r of s u bs t i tu tion .
d , To vo te in 1>erson o r by p r oxy on any s t o c ks, bo nds o r oth e r
secu r i r l e s f o r the co nv e r s ion th e r eof int o other stock s , bonds o r
s e c uri t i es , o r to depo s it t h em In a ny vot i ng tr ust o r with a ny pro t ect iv ~
o r lik e committe e or with a t ru s te e o r d e pos itories d e signated th e reby, or
to exer c ise any right s to s u bs c r ibe for add i t ional s t ocks, bond s o r ot h er
sec uri t ies and to mak e a ny a nd al l n ecessa r y payme n ts t h e refo re, a nd t o
jo in a nd parti c ipa t e in o r to di ssent f r om and o ppose a ny reo r g anizati on ,
recapita li za ti on, conso l i d a t ion , li quid a t ion , sa l e o r merge r o f c o r po r a-
t i on s o r pro p e rt i es in whi ch lt ma y h e i nt e rest e d as Tru s t ee , upon s uch
te r ms and co ndi t i ons as i t may de em wise.
e . To reg i ster any sec u ri ties o r other pr ope r ty in its own n ame or
in th e n ame of its nomi n ee , with or with out the a dditi o n of wo r ds
i ndic ating t h a t s uch secur i t i e s a r e h e ld in a fidu c i a ry ca pac i ty , o r t o
250 p:3 5 XII -3
hr,ld any se curt ties in bea r e r form , but the books ftnd r ecords ". the
~·r ,1st.ee shAll at all ti mes sho..., that a ll such tnve n 1m e nt s are ,>art of the
Trust Fund.
f. To re ta in, man 11;g e , ope rate , repair, improv r, partiti on, dedicate
o r o t her\olise d ea l with nny rea l est at e h e l d by It.
g . To r etain uninv es t ed s uch ca::;h as lt may dt•~m n ecessary , ._.lthout
o bligation to pay i nterest thereon.
h. In gen era l, t o exercise a ll po \ol e r s in the ma na gement o f the Trust
fund •,1nich any ind ivi dual c ould exc ~cin e in the man agement o f property
o\oln ed 1'1 h b o...,n righ t.
Ne ceH:ir.r ;>A rti es to a ny acc o•m ti ng, llti g,l tion , o r other pr oceed i ngs
shall Inc lude only the Tru stee and ll:e Clty Council, and the settlement o r
judgmen t in ar,1 s u c h c11;se in ...,hl <"h the Ci ty i s duly serv e d o r cited nhall be
bi ndi ng upon ,-1. Mem b u l-f , Retirtd 11embers , VesteJ Member s , or Benefi cia ri es
under th e Plan, and up on all persons cl a iming by, through o r under them.
Section 6 .. ~,t:llini st ration of the Tru st Fund-The Trustee sha ll pay o r
Cl ! ·tribu te all Plan benf;"flt a f rom t he Tru~t Fund in such form, in such
amou nts, at such times and to such payees as ma y te authorized b y the
Ret ireme nt Boa rd.
Th e Trustee ma y employ s ui t a ble agents and counsel . The e xpe n ses inc urred
by t h e Trustee in the performance of its du t i es h e r e und er and all proper
c har ge!.! and di s burs ements o f the TruDte c, inc luding all taxe n lll\olfully
A!JSeDsed upon or in respect of the Trust Fund or its l ncome 1 s hall be ch a rg ed
and paid by the Trustee from the Fund. No member of the Retirement Board, as
Trus t e e, shall rt ceive compensation for his services as such but shall be
e ntitled t o be r e imbursed for any expenses incurred by him on behalf of the
Trust Fund t o the e xt ent that such expenses a re not pa id by the City .
25 0p:J6 Xll -4
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The Trustee shal l k eep detailed, accurate ac co unt!l of l!.ll inve stment s,
r eceipts and di sbursements and other transac tions hereunder. Al.!. ucc ount s ,
books tmd re co rds relating thereto s hall be open to inspe t lon by nny pe r son
d es tgn11t e d by the City at all reasonable times. The Tru!ltee s hall matntaln
su c h reco r ds , make s uch comvutatlons and perfo rm such mtnlnterial acts as the
City from time to time may request. On or before Augu st 1 and February l o f
each year, the Trustee s hall file a report with the City In such form as the
City may r e quest. This report s hall show al l purchases, sales , re ce ipts,
disbursement s and othe r transactions effected by t he Trustee during the six
(6 ) n:•::mth period fo r ..,hi c h the report is filed. It s hall contain an exact
description , the cost value as s hovn o n the Trustee's books a nd the mar'<.et
va lue as of the end o f such period of every i e m then held in the Trust Fund.
The Trus tee ~hall be forever relieved from all liability to the City, the
Fund, and any M.:-m ber or Beneficiary with respect to the propriety of any of
its acts o r transs ct lon:1 shown in such report unless within ninety (90) day s
After the r ecelpl c f s uch report, the City gives t h e Trus tee written notic e of
Its objection or ob j ec ti o ns to a ny matter set f ... rth therein .
The Trustee s ha ll not be liable, either as a body o r lndlvidually, for the
maki ng, r ete nti o n, o r sa le o f any inv estme nt or reinvestme nt made by it o r
o riginally received by it as herein provided nor for any expense or liability
h ere und er, nor for eny l oss to or diminur-ion of the Trust Fund unl ess due to
or a ri s ing from its O!JT\ gross n egligence, misconduct, di s honesty or lack of
good faith. The Trustee may consult \o.'lth counsel and shall be fully prote cted
tn acting upon the advice of counse l . Un leso othe rvi se advised, the Trustee
may assume that the Plan at all times quallfies under Internal Revenue Code
Se ction 40l(a ) and that th e Trust hereby estab li s hed is at all times
XII-5
250 p:37
tax-exempt unde r In ternal Rf!v erue Code Section 50l(a), as nmen d ed , or
!J Uc ces sor prov i s i ons. The Truste e s h nll h ave no r esponsibility for the
a cc uracy of any information furnished it by the City .
Sect i on 7. Remov nl o f Trustee . Not hi ng herein s h a l l hr c onstrued to
proldblt Lh e City Co unc11 from r rm ovl ng t h e Ret ireme n t 8 0 11rd as Tru stee o f th e
Re tireme nt Fund by ap p r opriate nmendm c nt to th is a g r ,.tme nt Up,,11 r emova l of
the Trustee, lh e City Counc il shatl appoi n t II s ucces sor Tn .. s tr.e or Fu nding
Agent. Up on d elivery by th e re111 •,t d Tru:Jtee t l t:J s•. ,•:1so 1 o f al l pro per t:,
of the Fund, les s such r easonable amount as J t ab l · .. em ne c essa ry to pr w ide
f o r it!l ex penses, and any taxes or advances cha rg ,ab l e n r '1A Ya h le out o f t..,_,:
Fund , t he s uc cess or Trust ee o r Funding Agent s hall t h e reupon have t he po!J e r s
nnd d utJ ea as are confe rr ed upon it by t h e Trus t Agreem e nt or group annuity
contra c t . No s u cceoso r Trus t ee or Funding Age nt s hall hav e any obligation or
liabil i ty !Jith respect to t h e ac t s or omi ss ion of its pr edecesso rs .
XII -
2 50p: 38
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ARTI CLE XI II
Reti rement B"'' s and Ri&hts Ina lienah
S r ct 101· 1. Ina li enabilit\~. Mem bus, Retired Members, Vt-•n ctJ Members a nd
l h f'lr llcncf ic lari es und er he Plan are hereby r estrained 1rLr-, fl " llng ,
tr /\11 1:tcr ri ng , anticipating, as s i g nin g , hypothecating, o r o th erwise dispos ing
o f thei r Ret irement Ben e f i t, pr ospec tiv e Re tir ement Benefit . o r any othe r
rights o r inte rest und e r th e Plan, and any att em pt t o an t l, 4ilct te, assign ,
p ledge , o r o then.dse dispose of the snme shall be vo id. Said Re tirement
li e nefit , prospective Ret i rement Be n ef i t and rights and inter~s ts o f sa id
M«:!mbers , Retir e ' Member s, Vested Member s or Beneft ci arle s ~,.Al l no t at any
1 lm e be subject to the c l aims of cred i tors or ot h e rs for liabi liti es or tort s
o f s aid Membe rs, Retited Members, Vested Members o r Benefic iaries, no r be
11 ab l e to attachment I executi on, o r other l egal process. Notwiths tanding the
f orego ing, t h e Ret ireme nt Board may approve pa yment to an l'llternative payee
ba sed up on any "qualified domestic r ela ti ons orde r " as defined in Internal
Re venue Code Section 4 14(p) 1 and s u c h payme nt s hall n o t be d eem ed to be a
p r oh ibited alienation of benef its.
Sect ion 2 . ~-If any Member , Ret ired Member, Vested Memb er o r
Ue n e flcia r y sh all become bank r upt o r attempt to anticipate, assign or pled gi::
ttny b e n e fit s und e r the Plan, then s u c h benefits shall , in the discreti on of
he Ret iremen t Board, cease , and in that event the Retirement Board shall have
autho r ity to ca use the s ame , or any part th e reof, to b e h e ld o r applied t o or
for the b en e fi t of such Me mber, his spouse , hi s c hil dren, or other d ependent s,
o r any of them, in such manner and in s u c h proporti on s as t h e Retirement Board
may deem proper .
250p: 39 Xlll-l
ARIJ CLE XI V
tilt c-.All..2Il.-QL Te rmtoatton of Pla n
Sect i on 1 . It ts the expectation of the City that it Yil l
c on tinue this Plan and the paymrnt o f its c ontributions hrreunder
ind e finitely, bu t continuance o f the Plan ts n o t a s sume d n 9 a co ntra c tual
ob lig at i on o f the City .
Se c tion 2. ~-Th e City r e s e rves the right t o alter, am end , o r
t e r mi1rnt e t h e Plan o r any part thereof tn s uch manner as it may determine, and
s u ch a lteration, ,e,mendm e nt or t e rmi nat i on shal l take e ff ect upon noti ce
thereof from the City to the Retirement Board; prov id ed th at no s11-:h altera -
tion or amendment shall provid e th a t the Retirement Be nefit payable to any
Retired Member shall be le ss t h a n th at provided by hi s Accumu la t ed Contribu-
tions or affect the right of ,my Membe r to re c eive n r efu nd of his Accumulated
Contributions and shall not direct ly or indire c tly r educe any Member 's Ac crued
Pe nsion . And provided further, that no lteratio n or terminat i on of the Plan
o r any part thereof sha l l permit a ny part of th e Fund to r ev ert to o r be
re cove rable by the City o r be us e d for or diverted to purposes oth e r than the
exclusive ben e fit o f Members, Retired Memb e r s , Vested Members or Ben e ficiari es
under the Plan, except suc h funds, tf an y, as may remain at termination of th e
Plan after s atisfaction of all liabilities wi th respect to Members, Retired
Membe r s, Ve sted Members and Beneficiaries under the Plan and are due sole l y to
erroneou s a ctuarial assumptions. Furthe r, n o amendmen t sha l '. c ause the
e limination of an optional form of benefit nor the elimination or reduction o f
an early Retireme nt Benefit that continu es after retireme nt.
2 50p: 40 XIV-1
Section 3. App[QVdl Under the Internal Re v enue Co~. The Plan is
in t ended t.., comply vl th the requi r ements o f the applicable provisi on s of
I nt ernal Rev enue Code Section 401(0) as n ow In e f fect or hereafte r amended ,
and any mod ifi c ation or amendment of the Plan may be ma.de retroa c tive , as
n cct?ss ary 0 1 a ppro pr iate, to estab l is h and maintain su ch complian c e.
Sec t l o n 4. 01:;;t nut~. The C 1 ty r ese rvea t he r I ght at any t I me and
for 1111y reas o n s ati sfac to ry to It to di sconti nue permanent l y all con trt-
buttons u nde r this Plar,. Suc h discon tinuance s hall be deemed to be a compl e t e
te rmln11 t i o n of th e P?a:1
Se c tion 5 . I~.r.m.in.AL J.o.n . In the event o f a pa rtial o r complete
l c rmlnatlon 0 1 t he Plan , the Ac c rue d Benefits up to the date o f terminati on by
the affected Emp loyor.n a nd the ir Beneficiaries s h all be n on f orfeltable ond all
affected funds •ha ll be allocated to affected Me mbe r s , Retired Members, Ves ted
Membe rs and Benef i ciar i es on the foll ovlng priority basis of:
a. An Amount equa l to the Accumul at ed Contributions, or balan ce
t her eof , which would be payab le to the Members, Retired Member s , Vested
Me mbers o r Beneflclo r les s h ou ld d e ath occur on the date o f the termlnat Ion o f th e Pla n .
b. An amount of the remaining as s ets equal to a pro rata po r tion
de t e rmined on the ba s i s of the ratio that the octuar!al r ese rve fo r his
Accrued Benefit mi nus t he amount In a. ob ovc c redited to him bears to the
total of suc h actuarial re se rves minus the aggregat e o f amounts allocated unde r a. above.
Se cti on 6 . ll.istributioa. \/hen the assets of the Tru s t Fund have been
a l l ocated as Indicated above, t h e distributi on may be made In the form of cash
o r n ontransfe r able annuity contracts as determined by the Retiremen t Board,
provided that a ny affected funds r emaining afte r the sat i s faction of all
liabiliti es to affected Mem be rs, Retired Memb ers, Vested Memb e rs and Benefl -
clar!es under the Plan may be withdrawn by the Retiremen t Board from the Fund
an d r efunded to the City,
250p:4 1 XIV -2
ARTICLE xY
Benefit Re s t rictions on Earlv Termina t too
Section 1. Restrictions on T\Je nt y-fiv e <2 5) Hhhest Paid Emolov ees . Thi s
Se ct ton sets f orth the limita t i ons requi r ed by the Internal Revenue Se rvi c e on
t h e Em pl oye r cont rib ut i on s which may be u sed for th l be n e fits of c ert11.in
Employee s. This Section s hall apply t o a n Employe e only If hin anticipat ed
11Mual Pens ion exce e ds one thousand f ive hundred dollars ($1,500) and the
Empl oye e ._.as among t h e tventy-flve (2 5) highest pnld Individuals of hi s
Em ployer at the time of s uch Employer '.9 initial es tablishm ent ot the Plan
("Plan" f r r purposes of thi s Section, includes the Pr ev ious Plan) or the d1tt e
o f a subsequen t amendment whi c h substantially inc reased the possibilities of
d i sc rimination as to Plan benefits. The limitations se t f o rth ln this Se ct i on
shall b ecome applicable if:
a . the Plan is terminated 'within ten (10) years a i·ter its Initial e9tabllshmcnt , or
b. the Pe nsi on of an Employee be comes payable 'within ten {10 ) years
a f ter the initial es ta blishme nt of t he Plan.
I f subparagraph b. a bove is applicable, the r est rictions Yi.!.l remain in
t•ffect until th e Plan has be e n in effect for t e n (10) years fr om the initial
es tablishment and , If at that time, the fu 1 current cost s have been funded,
the restrictions will no longer apply.
If subpa ragraph b. above is appliuble and t he full current costs ~ . .lvt not
been funded after the Plan has been i n effect f o r ten (10) years from the
tnltlal establishment, the limitations shall con t inu e t o "PPlY until the full
c urr ent cos t s have been fund ed.
250p:42 XV -1
I
If the Empl o ye r con trlbution9 are sufficient to meet the fu l l current
cosL 9 o f t h e Pl an at th e end of ten ( 10) years fro m the d ate of the Pl an's
initial establishment, or lat e r if the full curr ent costs are then met for the
first Lim e afte r suc h ten (1 0) year peri o d , t he exceCJs o f benefit s payable
un ll,•r t h e Plan bu t previously l imited by thi s Sec t ion, over th e amounts
a c lu11.1 l y pa id s hall be p,·d d i n a l ump sum to th e t"d tlre d o r t e rminated Mem b e r ,
if ltvlng, o r if deceas ed , t o his nam ed 8en ef i c i.uy o r est ate.
J f an Emp l oyee i s s ubj ect to t h e pro visi on s of this Se ction, t h e Employer
cont ributions v h i c h mn.y be used for hi s ben ef i ts s hall n o t exceed the greatesL
o f the foll owi r ,1:
c. 1'w'enty thou s.11,nd dolla r s ($20 ,000); or
d. An amount computed by mul t ipl ying t wenty percent (20%) o f the
fi rs t f ifty thousand dolla rs ($5 0 ,000) of the annual comp ensation of the
Emp l oyee averaged over h i s la s t fi ve (5) years of parti c ipati o n, o r actual
yea r s, if le ss than fiv e (5) yea r s, by th e n umbe r o f years between the
date o f the initial e s t ab l 1 s hment of t h e Plan by s uch Employer and
(1) the date of termino t i o n of the Plan as t o s uch Em pl oye r, o r
(2) in the case of an Employee des cribed i n subparag raph b. of
t hi s Sec ti o n , t he dat e hi s benefit becomes payable , if before the
dat e of such termin at i on of the Plan.
ll o wever, l f the ful l c urr ent costs of th e Plan hav e not been met by such
Em ploy e r on the date d escribed in (1) or (2) of thi s su bdivision, whi c hev er is
nppl t c ab l e , then th e d ate of the fati :J re t o meet s uc h c urrent costs s h a ll be
subs titut ed f o r th r: c!ate r e ferred to in (L) o r (2 ) o f this s uhdivlsi on. For
purposes of dete rmining the c,•.,trib u tic1:1.s whi c h may be used f or the benefit o f
a n Employee \ro'hen (2) of t hi s sub1 1 ivi s~o:1 applies, the number of yea rs taken
into ac co unt ma y be re com put ed f o r each yea r if the ful l c urr ent cos ts of the
Plan a r e met f o r such year by hi s Employer.
250p:43 XV-2
The limitati ons described above may be exceeded for the pu r pose of making
cu rrent benefit payments t o ret ired Employees who would ot h erwtse be s ubject
to s uch restrictions, prov~d ed that (1) the contributi ons 'which may be used
f o r sny such r e tired Employ e e in a ccordance 'with the r cstrlction9 h eretofore
lntll c atcd are applled either to p r ovi d e a level amount o f Pen s i on in the basic
f orm of benefit pr ovided for und er t h e Plan for such Empl oyee (or a level
amo unt o f Pension in ftn opti on a l form o f bencf!.:, not grente r in amo unt than
the level amount of Pension under the basic fr>rm of benr.flt), and (2) the
Pen~Jion thus provided is supplemented by monthly payment!! to the exte nt
n ecessa r y t o provide the full Pen s i on in the basic form called for by the
Plnn, a nd (3) such supplementa l payme nt s are made only if the full current
cor.t s of the Plan have been met or if t he aggregate of such supplemental
payment s for all such retired Employe es does n ot exceed the a~gregate
contributions already made under the Plan in the y ea r then current .
The term "benefits" as us ed in thi s Section sha ll not include the cos t s of
any death benefits with respect to an Employee before retirement, nor the
amount of any death benefits actually payable after t h e death of an Employee
whether such death occ urs before or afte r retirement.
In conformity with Section l.401-4(c)(2) of the Treasury Regulation~, if
t h e Plan ls amended to increase substantially t he extent of possible discriml-
nntlon as to contributions a nd as to benefits actually payable upon subsequent
te rmination of the Plan or subsequent discontinua nce of contributions
thereunder, then the provi sions of t 1iis Section shall be l\pplied to the Plan
as so amended as if it were then a nev plan establi shed on the date of such
amendment, except that, in place o f the lim it describ ed in
Section l.40 1-4(c)(2)(1l l), of t he Treasury Regulations , the Employer
XV-3
250p:44
I
con tribution s 'Jhich may be us ed f o r the benefit o f an Employe e 'Jh o i s subject
to t he prov i s i ons o f tht s Sect i on s hall no t exceed the gre ate st o f th e
fo l lo'Jtng:
e. The Emp l oye r contri b uti on s (or fund s attri butabl e ther eto) 'Jhi c h
'J o uld hav e b~en applied to provid e t h e benefits for the Employee t r th e
l'lnn prior t o ame ndm ent h ad been con t luu ed withou t chnnge,
f. TY enty tho us and dollar s ($20,000 ),
g. Th e s um of (1) t h e Emp l oy er contributions (o r funds attri butab l e
the r eto) vhl c h Yould have be e n applied to prov id e b ene f its for the
Emplo yee under the Pl an pri or to am e ndment if it had been termin at ed the
da y befo re the effect iv e date of c hange , and (2 ) 1l n amo unt comput ed by
multiplyi n g tven ty per ce nt (20~) o f t he firnt fifty .:housand dollar!I
($50 ,000) of the annual c~mpens atl on o f the Employ ee averaged o ver h is
la s t fiv e (5) y ears o f parttcipatlon, or actual yea r s , if l e ss th a n f ive
(5) yea r s, by the e r o f y e ars between the date o f t he ame ndm ent o f t he
Plan by the Empl oyL and
(1) the da te o f terminati on o f the Plan by the Employer, o r
(2) in the Ca!ie of an Empl oy f' desc ribed in subparagraph b , o f
this Section, thl date his benefit becomes pay a bl e , if befo re t h e
dat~ of su c h terminati on of the Plan.
Sect ion 2, Wndment of Plan. If th e Plan l a amended to inc rea se
be n efits which wo uld s ubstan tially in c r ease the extent o f poss ibl e discrim ina-
ti on a s to cont ributi on s or as to benefits upon termination of th e Pl an, t h e
res trictions s et f o r th above, sha ll be ap plied to th e Pl a n as if it were a new
plan estab l lshed on the date o f such chang e .
XV -4
250p :4 5
ARTI CLE XVI
L.lm.i!fil-1.2.!li
Section 1 . Reemol ovment of fo r mer tl orwes ted Memb e rs. [f a Member 'J
emp loyment term in ates pri or to hl9 b ecom ing a Vested Member and t he Membe r l s
subsequently r eemployed as an Employee, such Memb e r s hnl l n o t be entitled to
receiv e c redit for his previous Cr edit ed Se rvice und er the Plan , except as
p r ov lded I n Se ction J of Arti c le IV her eof.
Se ction 2. Rt;cmolovmcot of former Mem hern , If a former Member ls
reemployed as an Employe e o f the City , no Reti r eme nt Benefit payments s nall be
made during the period of such reemployment. Upon the ~ub9equent vested
terminat i on of employment by such a Mem ber, the Member shall be en titled to
re c e ive a Retirement Benetit based on (1) h is Credited Se rvi c e prior to the
dat ! of his previous term i nat i on (except Cred i t.d Service los t after a fiv~
(5) year break under Section 3 of Article IV h e reof, and (li) his Credited
Serv ice during the period of hi9 r eemp l oym e nt, a nd (iii) in the case of a
disabled Me mber, his Credited Se rvice 'Jhile dl!:iabled. In the cas e of
reemployment, of a forme r Memb er who re ce ived , prior to hi ~ reemployment, any
benefit payment s (._.hethe r single sum or periodic) with r espect to ._.hlch
Cred it ed Service ls r estored hereunder I the Ret f r eme n t Benefit payable upon
h i s subsequent retirement shall be reduc e d by the Actuarial Equivalent of s uch
payments , other than Disability Retireme nt Benefit payme nt s , h e received prior
to ht., Norma l Retirement Date, unle ss such payment was a single sum that was
repaid under Section 3 of Article I V h e r eof.
250p:46 XVI-1
Section 3. Limitation of Benefits . Not\.liths tandln6 any oth er pr ovi sion
conta in ed her e i n to the c ontrary. the benef its payJ b le to II Me mber from th i s
Plan provided by City con t ributl o,:s shall be sub ject t o t he limitati on s o r
I n tern a l Revenue Code Sec ti on 4 15 in a cco rdance 'with a. nnc . (b ) b e Jo.,..:
a. Defined Benefit Plan Only : Any annua l Pensi on payable to a
Mem ber hereunder s h a l l no t exceed the l esse r o f :
(1) Nin ety thou!lo nd do lla rs ($90,000), adju s ted for tr.c r eases In
the cos t of l.iving, a s pres c r i bed by the Secr et ary o f the Tr e a.:rnry o r
his delegate, effective Janua ry 1 of each calendar year and
applicab l e to the Limitation Yea r ending with o r wi thin such c al e ndar
year , o r, Jf greater, the amount of straight life , o r qcalifl ed Jo lnl
nnd survivo r annuity accrued by t h e Member 11.s of Decem b er 31 , 1982 .
( ) One hundred percent ( lOOX ) o f the Emp l oyee's avera e~
ea rnings for the thr e e (3) consec utive c11le ndar yea r s , 'Jhi le a Memb e r
In the Plan. in 'Jhich h i s earnings were the highest. Fo r pv po ses of
this s ubse ct ion, earnings fo r any Lim i tation Year shall b !" ~e
Member 's earn ed income , wages, s alaries , ll lld fr.es for p r o !1 J t onal
se rvices, and ot h er amounts rece iv ed for personal servlc.;~ ..::tuftlly
rendered in t h e course of employment with the City ( l n c luding, but
not limited to, commissions paid salespe r son s, compe n sation for
s ervic es on the basis of a percentage of profits , commlsslon~ on
insu rance premiums, tips and bonuses), p rOv t ded r.uch amounts are
ac tually pald or J ncludible in g r oss income dur!ng such yea r .
Earnings shall exclude the f ol lo\.llng :
(a) Clty contributions to a plan of deferred compe n sa ti on
..,l:' c h a r e not i nclud ed in th e Member's gross income for the
tax a ble y ea r in 'J hi ch con tribu ted o r r.:ity contr ibuti ons und e r a
s i mplified employee pension plan to '.he extent s uch c on tribu-
ti ons a r e deductible by the Mem ber, o r any distributions from a
plan o f de fe rr ed compe ns ati on; and
(b) Other am~ur,ts whi c h rtceived spe cia l tax benef t ts , o r
contributions ma de by the City (whether or n ot under a salary
reducti on agreement) toward s t.he purchase of a n annuity de sc rib ed
ln Internal Revenue Code Sect.i on 403(b) ('Jhether or not th e
amounts are actua lly exclud ,,ble fr om the gross income o( t h e
Memb e r).
The foregoing limi ta ti ons s h a ll not be applicable 111th respect to a ny
Membe r whose aMual Pension un de:· th i .s Plan and .11.ny ot h e r defined benef it
pl.11.n ma intained by the Employer is l ess than ten thousand dollars
($10,000) If su ch Memb e r has not At any time parti c i pated J n a ny d efined
cont ribution plan (within the meaning o f Int e r na l Revenue Co Ge
Sec tion •15{k)) maintained by the City. In t he event that • Member has
250p:4 7 XVI -2
been c r ed ited \dth less than ten (10) years o f Cr edited Se r v i ce , t h e
max i mum annual pens ion a llo..,.able under this Section shall be r e duc ed by
mul tiplying such maxi mum annual p ens ion by a fracti on, the numerator o f
._.hich is the numb e r of such Membe r 's yea r s of Credited Service and the
denom inat o r o f ._.hich l s ten (10).
Th e limi ta ti o ns of this Section a pply t o a straight life annu l ty ,_.1t h
no anci llary ben e fits and to an ann u ity that con s ti t ut es a qua lified Join t
ond su rvi vo r annuity , prov id ed payment beg ins be t,..e e n ages s ixty -t wo (62)
and s i xty -fiv e (65). If payment c ommen ces befo r e age s ix ty-two (62 ), the
f o rego ing limitati on s s hall be r e d uced so that th ey a r e Act uarially Equiva -
lent to s u c h a be n efit cotM\en c ing ilt ngc s lx ty-t'JO (62). ll o ...,eve r, th e
r ed uction o f this paragraph s h all n ot r ed u ce t h e limitation below sev enty -
five thousand dollars ($75,000), if pllyment cotM\ences after age fif ty -fi ve
(55 ). o r belo._. the Actuarial Equivalent of seventy-five thousand do lla rs
($75,000 ) c ommen ci ng at age f1 fty -fi ve ( 55), if payment commen c e s befo re
ftge fl fty-f 1 ve ( 55). If payment commences after age sixty-five ( 65 ), the
1 imitation shall be the Actu arial Equi va lent o f a n inety thousand dollar s
($90,000 ) annual benefit c ommenc ing at 11.ge sixty-five (65). The in te re st
11.sswnption for purposes of dete r mining Actu11.rtal Equivalency undec this
paragraph s hall be the int e res t rate other'Jise used for purpo se s of
computing optional forms of income pay able under the Plan, but the rate
s hall not be less than five percent (SX) annua lly if be e fits commence
befo re age sixty-five (65) and s hall not exce e d five perc ent (SX) aMuall y ·
if b e n efits comme n ce after age si x ty-five (65).
b. Defined Benefit and neo ned <:o otributton Plans : If, in 111\y
Limitation. Year a Member also parti c ipa tes in one or mo re defin ed cont ri-
bution plans maintained by t h e City, then for s uch Limitation Ye ar , t he sum
of the Defined Benefit Plan Fract ion and Defined Contribution Plnn Fra c tion
(aa described below) for 011ch Limitati on Year s hall no t exceed one. The
Def ined Benefi t Fraction f o r any Limitation Year shall mean a fraction (a)
the numerator of which is the p r c-ject e d annua l benefit of the Memb er under
the Plan (determined as of the c l ose o f t h e Limitation Year), and (b) the
denom inator of 1Jhich is the lesser of one hundred twenty-five percent
(1 2 5X) of the dollar 11:nitatl on und e r Interna l Revenue Co d e
Sect i on 415(b)(l)(A) o r one hundr e d forty percent (140¾) of the perc e nt age
limitation under Internal Revenu e Code Sect i on 415(b)(l)(B) for the yea r of
determination (tak ing into account the effect of Section 235(g)(4) of the
Ta x f.qulty and Fiscal Responsibility Act of 1982).
The Defined Contribution Fra ction for any L i mitation Year shall mean a
f raction (a) the nwnerator of 'Jhich l s the sum of the annual additions (as
defined in lnternal Revenue Code Sec tion 415(c)(2)) to the Memb e r's
ac co unt s under all def!ned contributi on plans maintained by the City as of
t he c l os e of the Lim itat ion Year (s ubject to reduction to the extent
p e rmi tted under th e trans ition rule In Se ction 235(g)(J) of the Tax Eq uity
and Fis ca l Re sponsibility Act of 1982), and (b) the denom i nator of ~hlch is
t h e :rnm of the lesser o f one hundred twenty-five percent (12SX) of the
dollar li1:1ltatlon under Interna i R<venue Code Section 415(c)(l)(A) or one
hundr ed forty ~er cent (14 0X ) of the pe rcentage limitation under Internal
23 0p:48 XVl -3
I
Revenue Code Secti on 4l5(c)(l)(B), for such Limitation Year and for all
prior Limitati on Ye ars duri11g ._.hic h the Me mber ._.as employ ed by the City
(provided , how e ver, at the election of the Retirement Board, the
den om inat or shall be inc reased by using fo r Lim itati on Yea rs end ing pr i o r
t o January 1, 19 83 , an amou nt equal to the denominat or i n e ffect for the
Limitation Ye ar endi ng in 198 2 , mu ltiplied by the trans ition fract i 1Jn
provid e d I n Interna l Re venue Code Sec ti on 415(e )(6 )(B)).
If, in any Limitation Year, the s um of the Defi n ed Be n efit Plan
rra c ti on and De fined Contribut i on Plan fract i on fo r a Mem b e r '-'OUld exce e d
on e (1.0) without adjustment of the amoun t of the maxi mum annual pen s i on
t hat ca n be paid to s uc h Member under pa r agraph (1) of th i s Se c tion, then
the am o un t of th e mavlmum annual pension that can be p11id t o s uch Member
unde r pa ragraph (1) o f this Sect i on, shall b e r ed u ced to the ex tent
n ecess ary to r educe the s um of the Def ined Bene fit Pl an fractio n and
Defined Contributi o n Plan Frac ti on f o r such Membe r to one, o r th e
Ret irem en t Board ma y take s u c h other acti ons a s will cause the sum to
eq ual o ne (1.0) or l ess.
For purposes of t his Section, the Li mitat ion Year sha ll be t h e calen dar year.
Section 4. Consolidn t i on or Merg e r. The Pla n s hall not be con so lidated
o r me r ged wi t h, n o r shall any assets o r liab lliti es be tra nsfe rred t o a ny
o t her P lan , unl ess the benefits payab l e to each Membe r 1 f the Plan we r e termi -
n ated i mmedlately after s u c h action wo uld be eq u a l to o r greater than th e
b e nefits t o which such Membe r wo ul d hAve been entitled l f this Plan had been
te rminated Imme diately befo re su ch action.
25 0p:49 XVI-4
ARTICLE XVII
Mi scell11neous Pr ovi s ion s
S ection l . R1 sht9 of Members. EAc h Membe r s h all be adv i sed of the
general p r ovision s o f the Plan and u po n vritt en request add r es sed to t h e
~etirement Boa r d sha l l be fu r ni s h e d \11th any i n fo r mati on requ ested r ega r ding
his st a tus , ri ghts a n d p r ivileg es unde r t h e Pl a n . Ne ither Lhe estab lishmen t
o f th e Plan, t he gr a ntin g of a Ret ireme nt Benefit, no r any ac ti on of the City
o r t h e Ret irement Bo ard s h a ll b e h eld o r cons trued to confer upon any per son
nny ri ght to continue emp loyme nt, n o r 1 upon dl sm t sst1 l 1 a ny right or inte res t
tn th e Trust Fund o the r than as her e in pro vi ded ,
Sect i on 2 . Ll mitat t on of 1,\ahl.llU. Ho Mernber s h a ll ha·,e any right t o
Het lrement Re nefits und e r the Pl a n, exce pt s u c h rights, if a ny , as may a cc rue
to h im u pon h i s r e tireme n t fr om the ser 'li c e o f the City under the provisions
o f th e Pl a n whil e it i s in e ffe ct. All s u ch b e nefits a r e payab le sol e ly out
o f the Tru st f und ai1 d in no e v e nt s h a ll t h e City, the Trus tee, or the Retire-
me nt Board me mber s b e liable th ere f or. Heith e r the e stabli s hment of this
l'lnn, no r a ny a me ndmen t o r modi f i c ati on t he r eo f, nor f a ilu r e of the City to
p r ov id e s uffi cien t contri b uti ons t o t h e same s hall b e con s tru ed as giving to
a ny Memb e r, or other pe r s on, any l ega l o r e qui t abl e ri ght ng ntnst the City, or
a ny o f f i ce r o r direc tor thereo f, o r a g ain ~t the Re tir eme n t Boa rd, o r any
me mber t h e r eo f.
25 0p:50 XVll -1
I
RECO MMENDED AND APPROVE D in Englewood , Colorado, thi s __ day
o f ___________ , 1987 .
ATTEST :
250 p:51
XVII-2
TIIE CITY COU NCI L OF TIIE
CITY OF ENGLEWOOD
I
I
In rnduced , read in full , and passed o n first reading on t h 20th day o f
,July, 1q07.
Published as a Bil 1 for a n Or dinanc on ·he 22 nd clily of ,Ju ly , 1987.
Redd bv ti r le and paSRC'ct on fin,1 1 i-c adi nq on Utt~ lrd day of Augu st ,
Puh\ishe by titl e as Ordi11,1nc-c> No .,il.., Serles n f 1987 , on the 5th day
o f ,\uq•.1~t I I 9A7.
'
At tes\: , /· . !..{;, ,-. a1fo (t/ ' I, ~-ll
Patnc 1a 11. Cr<Jw , City er~
A , /., J 6.. J..iJ.:_ ~ i..--dtii, Mayor 7 ,,
!, Patricia 11. Cr<Jw , Cit y Cl e r k of the City of Eng l ewood , Col orado ,
hereby certify that t 1,e f regoing is a tnie copy of the Ot dinance passed on
final rending and pubJ ished by ti t l c, as ordinance No . ,;LL_, series of 1987 . !? . j' /? C hc((c, ;:u .. 1 Hr
Pa t ncia fl. Cr<Jw
-2 -