HomeMy WebLinkAbout1989 Ordinance No. 016amnwa:oo,J..0
smml Of 1989
OXIICIL BILL 00. 19
DITROOUCm BY CXXN:IL
MIHIER Ka.TAY
9 (h)
AN amnwa l\M1'21DI?r; TI'tLE 3 , OIAPTER 6, ...!GDDOO IUllCIPAL CXDE 1985, '11IE
C1TlC OF l!l!G.DIOCll ~ 1!2-IPUJYEES RETIR!Hffl' PLllN Alt:> TRUST.
W!m!FAS, DC ~-6-11-2 enpcwers the Retixerent Board to recc:mnend changes
to the City• s Noneirergency Eltployees Retirs'ent Plan and Trust; and
WHmEAS, City Council desires to enact ~nded changes that benefit
the nmtiers of the Plan;
Ni:M, THEREl!'Cm:, BE IT amAINID BY THE CITY CXXlOClL Felt THE CITY CF
ENiLliHXX>, C!%JJ.INXJ, 'n!M':
Section 1. Title 3, Olapter 6, Section 2, SUbsection 2 I, Englewood
l'llnicipal Code 1985, is hereby anended to reaC: ~ follows:
3-6-2-2: DEFINITirnS: unless the context otherwise requires, the
definitions and general provisions contained in this Section govern the
construction of this restate<! Plan.
I. "Carpensation" neans the total cash remmeration paid to an El!ployee
for a calendar yeaz by the City for personal services as reported on
the Eltployee's incare tax withholding stateirent or stateirents (Fem
W-2, or its subsequent equivalent), including longevity pay and
excluding lxmuses, ext~a pay, ca,pensation tine, overtine, lll!p-SUII
paynents in lieu of accrued vacation tine, sick leave, or personal
leave, 1;orker' s 001"pensation and pay contribution by the City under
this Plan, or the like, but including any cmpensation that the
eirployee has elected to have deferred under Section 457 AND SEx:TIQI
125 of the Internal Rel>enue Code.
Section 2. Title 3 , Ch31>ter 6, Section 8, SUbsection 7, Englewood
Mtlnicipal Code 1985, is hereby repealed and reenacted to read as follows:
3-6-8-7: llmEFICIARY: THE MEMBER CR VESTED MD~ MJST DESIGNATE HIS
BmEFICIARY Ill WRITIN., IF QI CR AFTER JA!l\ll\RY 1, 1987, A Mi\RRIID MfJIIIER CR
VESTED MD1BER WISHES 'ro DESIGlATE &HXIIE Ol1IER 'lllAN RIS SPOOSE 'ro BE A
PRIMARY Bl!ffi:FICIARY (CR WISHES 'ro <XNl'INUE, Al!TJ:JI JANUARY 1, 1987, Stx:11 A
DESIGNM'IQI f.11\DE PRICR 'ro JAIIIJARY 1, 1987) , Stx:11 tl!SIGNATIQ; ,au, 00T mDZ
(CR CX:tn'INUE 'ro BE) EfTirl'IVE tliLESS HIS SPOOSE (IF HIS Sl'QJSE CAN BE UX:M'l!D)
CDISEffl'S IN WRITm'.l 'ro Stx:11 DESI~ICN (CR FCRI OF lm1EFITS) 11110! MAY l'Dl' BE
CIWQD WI'lHXJr SPOOSAL CXllSEZn' (CR TIIE OH!ENl' OF TIIE Sl'QJSE EXPRESSLY
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PmMITS DESIGNATICNS BY 'lllE MEMBER CR VESim MEMBER WI'l11X11' ANY RD;l()Dmlml' OF
PUR'fflER cx:Nsml' BY 'lllE SPOOS!J , l\CKllCK.EDGES THE EFFEx:T OF Stx:11 DESICilATICN
l\ND HAS SOCH cx:Nsm:t' l\ND ACl<NCMLl!IlGlE WI'mESSID BY A PLAN REPRESENrATIVE 0/'.
A 1'K7rl\RY PUBLIC. SOCH DESIGNATICN SHALL BE MADE IN WRITIOO UPal A lCRI
PKllTillm BY 'lllE RETIRE7-!EN1' BOMO AND SHALL BE FILED WI'ffl 'lllE RE:l'IRDl!Nr BOMD.
THE LAST SOCH DESIGNATICN FILED WITH 'fflE RETIRDIE!'n' BOARD SHALL <Xffl'ROL.
Section 3. Title 3, Chapter 6, Section 9 is rei-~aled and reenacted to
read as follows:
3-6-9: DFA'lll BE2IEFITS:
3-6-9-1: IZlml CR .NI rrlVB IIMl!R ll1'DI FIVB (5J <a KllB 1BARS at
lll!RYICE: IF l\N l\CTIVE M9llll!R DIES AF1'ER CDIPLETIOO FIVE (SJ <a ,-am YEARS OF
smvICE, '!"!E SURVIVIt«; SPOOSE SHALL RB:EIVE FIFn PERCENl' (S~J OF 'fflE
MEMBER'S ,·,LRUED BDm'IT FCR cm: HUNllRID nolENl'Y (120J IOffllS CERTAIN l\ND LIFE
Tl!ERFMTEI<. IIH:VER, IF 'lllE SPOOSE IS 1-mE 'l1ll\N FIVE (SJ YEARS ~ '111AN
'fflE MEMBER, 'lllE IOffl!LY BENEFITS WILL BE l<ilXOD BY cm: AND CNE-IIALF PEIONI'
(l.~J FCR F/!CII mAR THAT 'lllEIR DIFFERm::E IN AGE EXCEEDS FIVE (5) YEARS. IF
'lllE '-E-mER IS NC1l' SURVIVED ll"i A SPCXJSE, HIS DESIGNATED mm:Fl:CIARY SHALL
REO:IVE FIFI'Y PERCENl' (S~J OF TIIE MEl>DlER'S Klffl!LY ACCRUED l!EmFIT FCR QiE
HUNDRED TWml'lt' ( 120 J IOffllS CERTAIN. IF THE MEMBER IS 001' SURVIVED BY A
DESIGNATED BmEFICIARY, THE OOE HUNDRED 'l'l'lENTY (120J IOffl!LY PAYMENI'S SHALL BE
Ol·IPU':'ID AND PAID Ill A Sm.LE StM 'l'O THE MD•!BER'S ESTATE. 'lllE PAYMENl' '10 THE
stJRVIVIOO SPOUSE CR DESIGNATED BENEF'ICIARY WILL CXM!!:NCE CN THE FIRST or~.-OF
THE !-Om! FQLLCMIN:; THE DATE OF THE ~lEl-!BER I S DEATH, CJ\ IF LATER, THE llATI,; THE
MEMBER 1-oJLD HIIVE ATI'ATh'llD 1'a: FIFI"Y-FIVE (55J. IF A MEl!llER'S DEATH OCCURS
PRICR 'ro HIS FIFTY-FIFTH ( 55'111) BIRTHDAY, THE RETIREl<!EllT BCIARD MAY ELECT, WI'ffl
TIIE CXllSENl' OF THE Ml:MlER' S SPOOSE, DESIGNATED BENEFICIARY CR ESTATE TO PAY
'lllE SPOOSE, BmEFICIARY CR ESTATE A SIIG.E SlM PA~!ENl' AT 'lllE TIME OF 'lllE
MEMBER I S DEATH, ~ '10 THE AC"lUARIAL EXlUIVI\LElll' OF 'lllE PAYMl!Nl' DUE WHEN THE
MEl•IRsR w::m.D HAVE ATTAI;:D l\GE FIFI'Y-FIVE (55J.
3-6-9-2: llEMH CIF A \IJ!S'1m CR DISNIUD ll,H!l!R PIIICR 'l'O <DMH:IM!Bl' CR
PA»BffS: Ill 'lllE E\'ml' A VESTED MEMIER CR A DISABLED MEMBER DIES PRI<ll TO THE
c:x:M-!E20l>!EN1" OF PA~IENl'S FRCf.l TIIE PLAN, THE SURVIVIt«; SPOUSE SIII\LL RECEIVE
FIFI'Y Prn<:ENT (S~J OF 'lllE MEMlER'S ACCRUED BmEFIT FCR cm: HUNDRED 'lWFm'Y
(120J 1-0l'I'HS CERTAIN !\ND LIFE TflEREAF'l'ER. IDWER, IF THE SPOOSE IS r-mE THl\N
FIVE ( 5 J YEARS YCX,N;ER THAN THE MEJ•IBER, 'lllE r-affllL'l BmEFIT WILL BE REDUQl) BY
OOE AND CNE-HIILF PERCEllT ( 1. ~J FOR EACH YEAR THAT THEIR DIFFEREJ<ICE IN AGE
EXCEEDS FIVE ( 5 J YFJ\RS , IF THE MElmER IS NCtr SURVIVED BY A SPOUSE , HIS
DESIGNATED BENEFICIARY SHALL REX:EIVE FIFI'Y PERCENI' ( 5~) OF THE ,'IJ-~liER I S
~Offl!LY ACOli.:D B!M:FIT FCR cm: IIUID!ED 'ffiE!l'IY (120J !OffllS CERTAIN. IF THE
MEMBER IS NOr SURVIVED BY A DESIGNATED BEJlEFICIAR'l, THE QlE: !RlNDiU'l) 'lWFm'Y
(120J !•mrHLY Pl'.YMl:Nl'S SHALL BE Ol-lPUI'ID .AND PAID IN A Sm.LE :·:.",ll TO THE
MEllBER'S ES'IA'l'E. THE PAYl-!l:Nr TO THE SURVIVIN. SP00SE CR DESIWAl'ID
BEllEFICIARY WILL CXM!E:CE CN THE FIRST DAY OF THE Mlffll FCU.aiING T!IE llPll'E OF
THE 1,D-!BD\ 1 S DEATH, CJ\ IF LATER, TflE DATE T!IE MEMBER IOlUl HAVE ATTAINED
FIFI'Y-FIVE ( 55 J , IF A !»mm I S DEATH OXURS PRICJ\ TO HIS FIFTY-FIFlll ( SSn!J
BIR'fflDAY, TflE RETIRDEfi' BOMO MAY ELECT, WI111 THE CCllSENl' OF THE MEMBER I S
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SPOOSE, DESIGNA'l'fD BENEFICIARY CR ESTATE 'IO PAY THE SPOOSI. BENEFICIARY CR
ESTATE A SI?G.E St.ti PAYMENT AT TIIE TIME OF TIIE Ml'Mlm' S DE.all, ~ TO TIIE
PCnJARIAL ~ OP' TIIE PAYMl!Nl' OOE WIIDl TIIE MEM!ER WXlID HAVE ATTAINED
NJE FIFTl:-FIVE ( 55) •
3-6-9-3: lElml C, NI ACT1VB ll'Jlll!R IE1'lll!J!N IIHW, lllll 1111.AX11>
Rl':l'IRl!Jl!N1 l:WJD: IN THE LVENr A IDlBDI o::Nl'INUES IN CITY EMPL<ro!Dn' AFrm
HIS tm.W. REI'U',El-!Eln' DATE~ DIES BEEmE '/ClUM.LY IIETil!m;, Timi HE SHALL BE
DEEMED TO HAVE RETIRED CN TIIE FIRST MY CF THE CALE\llllAR IOml IN 'r,'HIOI HE
DIES. IF AN OPTICWIL FORM OF PA'Dtmr HAS BEm EUL'TED, THE DEATH BENEFIT, IF
1Wi, SIWL BE DETERMINED BY ThE CPTlCN EIJX:TED. IF NO CPTlCtll\L Feel OF
PA»Erl' HAS BEm EL0CTED, TIIE MEJ-IIE\ 1 S ~r:Nl'HLY ACCRUED BENEFIT SHALL BE PAID
TO HIS stJR\IIVIOO SPCOSE FCR CNE HUNDRED TIE1l'Y ( 120) M:lffl!S CERl'AlN. IF TIIE
Mf?.IBER IS IDT SURVIVED BY A SPOOSE, HIS DESIGNATED BlliEFICIARY SHALL REX:EIVE
CNE HtJNr&1El PEX:Effl' (100'1,) OF TIIE MEMIER'S 1oCCRtlED BENEFIT FCR CNE l!lHlm>
'rnflffl (120) H:tffllS CERTAlll. IF TIIE 1-IEJ-!IIER IS NOl' SURVIVED BY A DESIGNATED
BENEFICIARY, THE QIE HUNDREil Tl'lrnl'Y ( 120) !OffllLY PAYMDll'S SIWL BE CDIPt1l'ID
AIID PAID IN A sm:;rn Sltl TO THE MD!BER' s ESTATE. DEATH BlllEFIT PA'iMENI'S SHALL
CX}MNC!l CN THE FIRST DAY OF THE :-om! FOLWIDX; TIIE ~IEl-!IIER'S DFATH.
3-6-9-4: C&\TR C, A RE'l'IRl'D Ml'Hll!JI CR 1!1121EFICIARr: IN THE EVENl' A
RETIRED Mf1•1BDI CR BDIEFICIARY DIES lil!ILE REX:EIVIl~ RETIRJ;l,!ENI' !ElEFIT
PAYMENTS, ~ DEF.Tl! BnlEFIT, IF '!'Ni, mu, BE DETERMINED BY TIIE FmM OF
RETIRDlE!\'l' BENEFIT BEING PAID. Ill THE EVEln' THAT NO DESIGNATED BmEFICIARY IS
LIVING AT '!HE 11E~TII OF SOCH REI'IRED ME!•lBER AND TilRM CERTAIN PAYMEmS ARE OOE 1
'!HE !\C1'J/l.'1.IAL ~JVALEt-!I' VALUE JF '!HE l•nmll..Y INSTALU!Em'S FCR THE llALA!o: OF
THE TERH CF.RTAIN Im.:. BE C0•1Pt1l'ED AIID PAID Ill cm: SUM TO THE ESTATE OF THE
RETIRED HEMBER. IF AT '!HE DEATH OF '!HE LAST stJR\IIVIOO BENEFICIARY FOLLOfflC
THE DE.l>/1'11 OF Tl-:E RETIRFD Ml!l·lBER, ~mrHLY INSTALLJ.!Em'S HAVE NOl' YET BEEN PAID
FCR '!HE FULL PERIOO OF THE TER!1 CERTAIN, THE ACTIJARIAL EXlUIVALENT Vl\LUE OF '!HE
INSTA!.LMrn'l'S FCR THE a..r..l\NCE OF THE TEFJ·I CERTAIN WILL BE CO·lPIJl'ED AND PAID IN
OOE SU'! TO TIIE E.."TATE OF ':'HE LAST Sl1RVIVIN3 BENEFICIARY.
3-6-9-5: SUPPIDEm\J, C&\TR BmEFIT FCR !EfillS HIRFD PRICR TO JmJNri
1, 1976: IN ADDITIOI TO Tl!E DEATH BElIBFIT PROVIDED IN SEX:'I'ICNS 1 . 7 AND 3
HER!JJF' A !.UMP sm SIJPPT..fl.!ENTAL DE.l\'IH BrnEFIT Slll\LL BE PAYABLE TO THE
DES!G!V\TED B!::!lEFICIARY OF ANY l\CTIVE f.lEl-mER, VESTED MEl1BER CR DISABLED Mf?.1BER
tK> DIES PRIOR TO TIIE CCM!EN:El·:ml' OF REI'IREl•IEt:l' BrnEFI'.:' PAYMENI'S FRO! THE
pr ..A11. THE SIJPP!F.'·IE::l'AL DEATH BENEFIT Slll\LL BE EXlUAL TO THE Al'OUNr OF
.r,,a:t.MJI.A"rnD COnRIBu'l'IONti PS OF HIS 0/\TE OF D~TII PLUS Tl~ PERCENI' ( 2'%,) OF THE
CX}lPE2lSATic.tl RFCEIVED BY HL'I SIJl!.SE)",2Ul:IT TO DEUMBER 31, 1975 AND PRIOR TO
J!\NIJ/\.11Y 1, 1983. IF SUCH ~IEt•!BER IS NOT SURVIVED BY A DESIGNATED BmEFICIARY,
THEW-~ stM PAYMl'l:l' e!IALL BE MPDE TO HIS ESTATE.
3-6-9-6: tJIIFalM SDIILTNEDl IEA1'II JJCr: 'IHE PROVISIONS OF ANY STATE
IHI PRCIVIDING !"CR TllE D!STRIB(Jl'ION OF ESTATES UNDER '!HE IJNIFC»I SI1'1JLTANEXXJS
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DEA'nl ,er, Wlll!N APPLICAIILI!!, SHALL OOIJERN '1111!! DIS'HUBl1l'IQ{ OF llrA'nl Bl!Nl!:rITS
PAYABLE tHlER THIS PLAN.
Introcb:ed, read in full, and passed on first reading al the 3rd day of
April, 1989.
Published as a Bill for an ordinance on the 6th day of April, 1989.
Read by title and passed on final reading al •.Jv • 17th day of April,
1989.
Published by title as ordinance No.~. Ser.tr" <>f 1989, on the 20th day
of April, 1989.
ATl'EST:
~;.<Y✓.~ PilicaiL crow, cltycler
I, Patrici a H. CrCM, City Clerk of the City of Englewood, COlorado,
hereby certify that the foregoing is a true o::,py of the ordinance passed 011
final reading and p.iblishecl by title as ordinance No • .L.1';;_, Series of 1989.
~£4,&~ Patric a H. crow
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COOIICIL COIIIIOIICATIOII
DAT! 801JICT
April 3, 1989
AGl!IIDA ITIII
11 (b)
City of Englewood
Nonemergency Retirement
Plan
IIIITIATID 11' Nono■ergancy Retirement lloard
STAPF SOUi.Ci Margaret L. Fraaun , Director of Finance
PRIVIOUS COORCIL ACTIOII
Ordinance 10 , Serbs 1988, • aaendment to allow midunager, aupervhory and con·
fidential employee optio" for Money Purchase Plan ,
37, Series 1987 -or! ginal adoption of entire restated retirement plan .
Adopt amendments to Nonemergency Employees Retirement Plan c1.11d Trust as recommended
by the Retirement Board .
BACKGROUND
T'ne Nonemergency Employees Retirement Plan allows the City to amend the plan and
previous amendments l1ave been made upon recomendatlon of the Retirement Board . The
amendments herein submitted by the Retirement Board are changes to clarify existing
language or changes to benefit the members of the plan . The specific amendment
recommendations from the Retirement Board are as follows :
1. Compensation definition : Effective in 1988, the City implemented an IRS Section
125 Flexibl • Benefits plan for all City employeos. The Flexible Benefits plan
allows employees to pay for certain health-related and child care-related expen
ses with pre -tax, rather than after-tax dollar ■. The employee's taxable salary
1s reduced by the aaounta deducted for health and dental insurance premium•,
medical expenaea and child care expenae ■ thwo re ■ulting in le11 federal, 1tate
and Social Security taxH paid by the a"Ployae and reducing the co•t• '. Social
Security taxes to the City . An e11ployee' • nono■ergancy retirement benefit 1s
predicated on hh monthly Hlary and the propo,ed aaendment ii to preclude
flexible benefit deduction• fro■ reducing an e11ployee' • monthly Hlary for the
purpose of calculating the retirewent benefit . 1/ithout the aaended co11pensat1on
definition, an employee could ba penalized for participating in tha flexible
beneflt plan . 'nle intent uf the ... ndHnt 11 to enaure that nonemergency re•
tire ■e nt plan membara receive the full retireMnt benefit to which they are
entitled .
2 , Beneficiary .,..ndment: 111• purpoH of the ... ndHnt 1a to allow plan members to
dc aignate whomever they vhh aa beneficiary . The currant language ro ■trict 1
daaignatlon of beneficiar y to apoua•, children, parent•, brothara or ■htera ,
111• Board concluded that a plan Mmber ■hould have coaplate dhcretion in do ■ig·
nating a benaflciary .
3 , Death Baneflt ■ • raatatemant :
n.a propoaed raatatement of tha Death Benaflta raaulted from an actual aituation
involving a vaated member of th• plan . In 1988, a 30 year old vuted member of
the plan died &1 a ruult of an accident . Aa the plan 1a currently adopted, his
aurviving epouae would not be eligible for any baneflt until the employH' 1
fiftieth birthday , 111e propoHd amendment incorporataa into all proviaion■ of
tho Death Beneflt■ ■oction, an option for the Board to elect, with tho conHnt
of the Member' 1 ■pouae or daaignated benaflciary, to pay a aingle ■um payment at
the time of the 11e11ber'1 death , The con11n1u.1 of the Board va■ that the current
language did not allow for i1111ediate financial aa ■htance that might be required
by the ■urviving family of a relatively young member ,
The proposed amendment• are the re ■ult of ■everal iaaua ■ dhcua ■ed by the Retirement
Board durlng it ■ 1988 meeting ■, 'nle propoaad changu are 1ubmitted by the Board in
an attempt to maintain the but benefit level available to the plan' 1 members ,
FINANCIAL
The propose d amendmentl do not require any direct funding from the City or the Re-
t lrement Plan and Truat , The change&, 1f adopted, will not have any negati.ve effect
on the Trust Fund's financial position nor will it increase its unfunded liability .
RECOMMENDATION
The recomme ndation of the Nonemergency Retirement Board 1s that City Council adopt
an ordinance amending Title 3 , Chapter 6 of the Englewood Hunldpal Code 1985, The
City of Englewood Nonemergency Retlument Plan and Truat ,