HomeMy WebLinkAbout1991 Ordinance No. 056BY AUTHORl11'
ORDIN ANCE NO .~
SE RIES OF 199 1
COU NCI L BIL L NO . 6 1
INTRODUCED BY COUNCI L
MEMBER GI J~LEY
AN ORDINA NCE AMENDING SE LECTED SECTIONS OF CHA PTE R 6 TI TLE 3, ENGLEWOO D
MUNICI PAL CODE 1935, CONCERNING THE RETIREMENT PROGRAM FOR NON-
EMERGENCY EMPLOYEES, ENTIT LED "Cll1' OF ENGLEWOOD NONEMERGE NCY EMPLOYEES
RETIREME NT Pl.A l~ AN D TRUST AS AMENDED AND RESTATED EFFEC".'i VE JA UA RY 1,
199 1."
WHE RE AS , 1he Ci ty Counc il has det ermined that the Non -Em ergenc y Employees
Pension Plan be amended 10 comply with tax law changes, In clud ing the lollowing : the
Tax Reform Ac t of 1986 (TRA 86), Omnibu s Budget Reconci lia tio n Act o f 1986 (OBRA
86 ), Omnibus B udgE•I Re conc ili at io n Ac t o f 1987 (OBRA 87), Tech nica l and
Miscellaneous Revenu e Act or 19 88 (TAMRA 88), Omnibus Budget Rec oncil iat ion Ac1 ol
198 9 (OBRA 89), and Omnibus Budge! Reconciliatio n Act or 1990 (OB RA 90).
WHERE .~S. effec tive January 1, 199 1 the mon thly benefit ol Retired Member s
an d Benefic iaries whose payments commenced pr ior to or on J anu ary 1, 199 1 shall be
incr eased by 3% per uach partia l and who le yea r or retirement since January 1. 1983.
The maximum i ncreas e shall be 24%.
NOW, THER EFORE , BE IT ORDAIN ED BY THE CIT Y COUNC IL OF THE CITY OF
ENGLEWOOD, COLORAC.O, THAT:
~-The fo llowing s ections or Chapte r 6 ol Title 3, Englewood Municipal
Code 1985, are hereby ame nde d 10 re ad as follows :
3-6-1:
3-6-2-2 :
3-6-6-5 :
3-~-7-6:
3-6-7-7 :
3-6-15-1 :
3-S-15 -2 :
3-6-15-3 :
3-6-16-3:
CITY OF ENGLEWOOD NONEMERGENCY EMPLOYEES
RETIREMENT PLAN AS AMENDED AND RESTATED
EFFECTIVE JANUARY 1,-1-98-1 1991
Purpose
Defin it ions
bimH atien-on REQ UIRED Distr ibution or Retiremen t Benefi1s
Accrued Credits and Ves1ed Benelil s Under the Prev ious
Plan Preserv ed
INCREASED BENEFITS FOR RET IRED MWBERS , TERMINATED VESTED
I.\El,\BERS AND BE EF ICIARIES
Restriction s on Twenty.fo e Highest Pa id Emp loyee s
EFFECIVE PR IOR O JA NUA RY 1, 1993
,\m<:rodrnen t ol-F'lan RESTR ICTIONS ON TWENTY -FIVE HIG '-EST PA ID
EtiPLOYE ES ErFE CTIV E AFTER ECEMBER 31, 19~2
AI/E D ,\ENT OF PL~
Lirn11 a1 ,on ol Be nelils
3-6-1: PURPOSE : Effec1i,e as ol Janua ry 1, 19-87 91 Ille City Councl ol t~e C,1y
adopted lhe amended an d ,es t.,:ed Pla n, as se t lorth here in , to continue and •e place tie.
Plan previovs.l)' :n e:lfec t Tl'.e Plan and Rct i:1:n·ar,1 Fund Jre m1a11dc d · , u.-1 1• e:
requircmen ls of Sec 1ion s 40 1 (a) and 50 I (a) of 1he ln1ernal Revenue Code ol 19 -5J
86, as amended . Tl ,e Pl an previously known as 1he "Cily of Engl ewood Re1ir cmen 1 Pla n··
shall hereinalle r be known as 1he ·c11y of Eng lewood Non -Em ergenc y Employees
Re1 iremen 1 Plan."
The Pla n and 1he se par ale relaled Re1iremen 1 Fund fo rmi ng a par1 hereo f, we re
eslabl is he d a d sha ll be mainlained fo r 1he exclusive benef1 I of 1he elig ible Emplo,•ee s of
1he Cily an d 1h eir Bene fic iaries.
No pa rl of l he Reliremen l Fun d can eve r reverl lo lhe Cily excepl as herei nafte r
provided, or be used for or d iverled 10 pu rpos es 01h er l ha n lhe exclu siv e benef il o f lh e
Employee s o f 1he Ci ly and 1hei r Beneficia rie s.
This amendrr.a nl and reslalemen l of 1he Plan shall nol, in an y way, allec l 1he righ ls of
for mer Em ployees who p ar1ic ipa 1ed in sa id Plan and who eil her retired o r 01h erw ise
lerminale d 1heir employment pr ior 10 January 1, 19-81 91 The riqh ls. 1f any , of suc h
fo rme r Employees an d of 1hei r Ben ef iciarie s and lhe amo unts of 1neir ben efi1 s, if any,
sha ll co nti nue lo be go verned by 1he pro vi sions of 1h e Plan as ii was in elfecl on
Dec em be r 3 1, 19 -8 6 90 or lhe da le, it earl ier, ct 1heir re l iremen l or 1ermina 1io n o f
employmen 1, unl ess spec ificall y prov ided fo r 01her wise herei n.
3 -6-2-2 :
H. ·code" means lhe lnle rnal Rev enue Code ot 19-54 86 as amended from tim e 10
time .
I , "Comp ens a1 io n· mea ns lhe 101a l cash rem une ral ion paid 10 an Emplo yee fo r a
calendar yea r by lhe Ci1y for perso nal serv ices as repon ed on 1he Employee's
income lax withhold ing slate men t or s1a1eme n1 s (Form W-2, or ils subsequenl
equivalenl), includ in g longev ily p:v an d exclud in g bonuses, exlra pay,
compensa1ion lime , over1ime. lump-su11 payn ,enls in lieu of accrued vacation
time, sick le ave, or personal leave, wo r,er's com pensa 1ion and any co ntribulion
by 1he Cit y unde r th is Pl an, or the like , but includ in g any compensa1 ion th al th e
Employee ha s el ected lo have defe rred under Seclion 457 and Se ction 125 of the
In ter nal Re ve nue Code. EFFEC TI VE JANUARY 1, 1989, THE AMOUNT OF A
MEMBER 'S COMP ENS AT ION FOR THE PUR POSES OF THE PLAN DURIN G ANY PLAN
YEAR SHA LL NO T EXCE ED TWO HU ND F,~D THOUSAN D DOL LA RS (S200.0 00)
SUBJECT TO CO ST -OF-LIVI G ADJUST M ENT S IN ACCOR DANCE WITH CO DE
SECT IO N 4 15 (d).
L. "Elfec1 1.e Dale of thi s Plan · means J anua ry 1, 1970. This AI .\E NDED AN D
reslated Plan ,s effectiv e as of January 1. t9-8 7 9 1 .
· Emp 'o,ee· me ans any pe rso n emplo,e d by the Cily on a permane n1, lull -11me
basis as delined in the Cit y Personne l Po lic y and Pr ocedu,~s . For 1he pu rposes of
this re1 re en1 plan. po lice olfi cers. pa id fuch gh ers and erec1e d oflic1al s shnll
not be c~nsi dered 10 be Errplo,ee s.
EFFEC 1\/E JANU,\RY 1. 1987 , INCLUD ED AS El,1PLOYEES ARE LEIISED
E~ PL O'fEES \'/!TH IN THE t/EAt I IG OF COD E SECTION 4 tJ (n)(2) EXCEPT THAT
IF SUCH LEASED Et.lPLOYEES CONSTITUTE LESS THA N TWE NTY PERCENT (2 0%)
OF Ti-'E NO: IH IG HLY CO:~PE SA TED \'/ORK FORCE VITHIN THE 1.1E/\li lNG OF CODE
SECT :C' I J t J 111 (1 ){C;(11). Tl·E ' I Tl"E TER '.I "El .lPLOYEE · WILL NO T ,I\CLUC E
. 2.
R.
X.
TH OSE LEASCD WPLOYEES COVERED BY A PLAN DESCRIBED IN CODE SECTION
J 14 (r )(5) UIJLESS OTHERWISE PROVI DED BY THE TERMS OF THIS PLAN .
"1/oem ,ier· moans an y person Inc luded In !he mem bership of lhis Plan as provided
in Se c1 lor, 3-6-3 hereo f. EFFEC 1'1VE JANUA RY 1, 1987, EXCLUD ED AS
1,IEl.'BERS ARE LEASED EMP LOYEES WITHIN THE MEANING OF CODE SECTION
,1 14 (n)(2).
·Previous Plan· means 1he Cily of Englewood Reliremenl Pl an (includ ing an y
predecesso r plan(s) 1h ere 10) in l orce and elfec l for the per iod pr ior 10
Ja ,,,,Jry I , 19 879 1 , lhe Plan hereby be i ng amende d and res 1a1ed . Any
refere nc o herei n 10 1he Prev iou s Plan as of a ce na in date or lor a cer1a in period
sh all be deemed a refere nce 10 1he Previous Plan as then in effect.
3-6-6 -5 : !:I MITATION-ON RE QUIRED DISTRIBUT ION OF RETIREMENT
BEN EFITS : No twithstanding any othe r pro v ision of this Pl an , disl ribut io n of benefits
un der 1hls Plan sha ll comme nce not lale r lhan Apr il 1 of the calenda r year following lhe
la ter of the c alen dar year in which the Member allains age se venty and one-half
(70 112) or the calenda r yea r in whic h the Memb er ret ir es , -t1nfess---an-exemplion-to
lnternaf-ReYePue-GodHeelion--40~)t9~,anled4ty-lCeoe,i!I-Slalule-o1-R~ufa1ions
for--governme<H-plans.
3-6-7 -6 : ACCRUED CREDITS AND VESTED BENEFITS UN DER THE
PREVIOUS PLAN PRESERVED : Th e res1a1emenl o f lhe Pr evious Plan by !his Pla n
shall no! operate lo exclude, dimini sh, lim it or restrict the paymen t or continuation of
payment of benefils ac crued as of De cembe r 31 , 19 -l!6 90 . The amount of such
Previous Pl an beneflls, ii any, in the course of paymen l by the Trustee und er said
Previous Plan, lo any pe rson on Decembe r 31, 19-% 90 , shall be conlinued by th e
Trus l ee un der !he Tru st Ag reement fo rm ing a part of th is Plan, in the same manner ,
undimin ished, preserved , and fully vnsted under th is Plan.
3-6-7 · 7: INC REA SED BE NEFITS FOR RETIR ED MEMB ERS , T ERM INAT ED VESTED
'v1EMBERS A D BENEFICIAR IES : EFF ECT IVE JANUARY 1, 1991, THE MONTHLY BENEFIT
OF RETIRED MEMBERS AN D AND BENEFICIAR IES WHOSE PAYMENTS COMMENCED PRIOR
TO JANUAR Y 1, 1991 SHA LL BE INCREASED AS FOLLOWS :
EARUER OF: THE YEAR
PAYMENTS CCMMENCE TO
MEMBER OR BENEFICIARY
19 90
19 8 9
198 8
198 7
1986
1 '.)6 5
1 9 6 J
198 3 or ear li er
PERCENTAGE
INC REAS E IN
MON THLY BENEFIT
3 -6-5-1 · RESTRICTIONS ON TWENTY-FIVE HIGH EST PAID EMP LOYEES
EFFECTI VE PRIOR TO JANUARY 1, 199 3: Th is Section sels lor!h the li m,1a1io ns
rc quucd by :he 1nl in nl Revenue Servi ce on 1hc E playe r contr,buli on s wh ich 11,J y be
used lo r the bc n~•,1s c l CPr ta,n Emp loye es . Thi s Scc:,on sh all apply 10 an Ernp lorcQ on'1
11 t1 ,s ar · -,pd'E:d 1n nu al Pe nsion e "cr.:eds one 1hc 'J ~;i nj live hundred do ll ars (S1 SCO)
. 3.
and tho ErrplO \OO was mong the twent y -live (25) highest pa id in d ivi duals o l his
Emplo ye r al o tune o l such Emp loye r"s init ia l establishment o f tM Pl an \"Piao" fo r
pu1poso s o l t Is Sect1011, i ncludes the Pr ev ious Plan) o r the date o l ,, su b sequen t
amendmen t wh ich subsIan1ia11, in crease d the possi bili tie s o l d isc rim inatio n as 10 Plan
ben el ,ts. Tho llrn1 tnt1ons se t forth in this Section sha ll become applicable if :
A Tho Plan is 1crin1nated within ten ( 10 ) ye ar s after ifs in i tia l es1abhshmen 1. o r
B . Tho Pensio n of a n Employee become s pay able wi thi n ten ( 10) yea rs afte r the
1n11lal es tab lishmen t of the Plan.
If subparagro~h B . above is applic abl e. the rest r ic tions will rema in i n effect
until the Pla n has bee n in effe c t fo r te n (10) years from th e ;ni t ia l
establ ishme ni an d , 11 a l th at time. the lull cu rr en t c•Jsls have been funded, th e
restr iction s will no longe r app ly .
If st·b?ar agr aph B. abov e is a ppli cable and the lull cu rr en t co sts h av e no t bee n
funded alte r the Pl an ha s b een in effec t fo r te n (1 O) year s lror:i the initial
establishment , the limilalions shall continue 10 a p ply unlil the l ull curren t cos ts
have bee n funded.
If the Emp lo ye r contrib utions a re suflic ient to mee t the lull current costs of the
Pl an at the en d o f te n ( 10) ye a r s f ro m the date o f th e P l a n's i n it ia l
establish ment, or la te r if th e fu ll current cos ts a re th en met fo r the firs t time
after such ten (10 ) year period , th e e xcess of b e n efi ts payable under the Pla n
but previo usly limited by thi s Sec tion, over the a moun ts actually paid sha ll be
paid in a lum p su m to the ret ired o r termin ate d Membe r. ii living, o r i i deceased,
to his n am ed Beneficia ry or esta te .
If an Employee ,s subject to the provisions o f this Sectio n. the Employe r
contributions wh ic h ma y be used fo r his benefits sh all not exceed the g reatest of
the followi ng :
3-6-1 5 . 2: AM EN OM E N:f--OF---PlcAN,--lHh~lan-is-amen!led-to-inerease--0enefit s
whic-h-wo uld-substan1ia11 y...;oc,ease-the-extent--0l--possible---o ise1im in ation
as-to-eon1r;b u1iens--oH!s-to-beflefi1s-upon---1e r-mina1io,1-<,Hhe--l'lan~1 he
res trietion-se t--forth-above-shall-be-applied-l<H~Plan--as-.1-it--we re-new
plarrestabl1sh ed-<:>n-1he-date-vl-sU€ll ·C-h ange, RESTRICT IO S OF TIVENTY -
FIVE (25) HIGHEST PA ID El.lPLOYEES EFFECTED AFTER DECEI ,BER 31.
1992.
A. REST RIC IC-J CF BEN EF IT 3 : I THE EVrnT OF PU,il TER I: NIIT ICIJ. T<,E
BENE':IT HEF,EUNDER OF AN Y HIGHLY COl,IPEI\SIITED EMPLO YEE ,~ND ANY HIGHLY
COI.\PE\JSATED FC Rl.'ER WPLOYEE (AS CEFI NED IN CODE SECT ;Qi J 414 \0 \ IS
LIMI ED TO ,\ BENEFIT THAT IS NONDISCRll.!INATORY UNDER COCE SEC TIO N
S Q\( 'J(C \,
B . RESTR ICT IC:•J ON DISTRleUTION: THE ANNUA L PAYr.:E· ns TO f-W HIGH
25" EI.IPLOYEE •,(''::FIN ED BEL OW) ARE RESTRICTED TO AN Al.',CUN T EOUAL TO
THE P/\YMEI ITS Tr',\ T WOULD BE MADE ON BE HALF OF THE i'.l.',F I.O YEE UNOEl1 II
SINGLE LIFE AI\NUITY THA T IS THE IICTUIIRl,\L EOUIV/\l E T C,F Th E SUIA OF THE
W PLO'<EE·s /,CCR L ED BEl<EFI T ill ID THE EI.IP LOY EE 'S OTHR BE : .Er TS I I mm
THE F I!. Tl'i: RE'3TR IC 110 1\S DO NOT ,\PPL.I. HOl".'EVEn. 'F
--1 ·
1 . AFTER PAYM ENT TO SUC H EMPLOYEE OF ALL SUCH BEN EFIT S. THE
VA LUE OF THE PLAN ASS ETS EQ UA L OR EXCEED S ONE HU ND RED TEN PERCE NT
(1 0%) OF THE VAL UE OF CURRENT LIAB ILIT IES (AS DEFI NED IN CODE SE CT ION
J 12 (1)(7)). O R
2 . THE VALU E OF SU CH BENEFITS FOR SUCH AN El . PLOY EE IS LE SS
THA N ONE PERCEN T (1 %) OF THE VALUE OF SUCH CURRENT LI/\EILI TIES .
C. EMPLOYEES WHOSE BE NE FITS AR E RESTRI CTED (HIG H-2 5 E .1PLOYEES):
TH E EMP LOYEES FOR AN Y GIVEN PLAN YEAR WHOSE BENEF ITS ARE RES TRI CTE D
UN DER SECTION B. ABOVE ("HIGH -25 EMPLOYEES ") INCL UDE THE TWEN TY·
FIV E (2 5) HIGH EST PA ID, FO R SUCH PLA N YEAR, OF ALL HIGHLY COMP ENSATED
EI.I PLOYEES AND HIGH LY COMPENSATED FORl,1ER EMPLOYEES (AS DE FINED
U 'DE R CO DE SECT ION 414 (0 )).
D. "BENEFIT" DEF INED : FOR THE PURPOSES OF SECTION B ABOVE ,
"BE NEFIT" INC LUDES LOAN S IN EXCESS OF THE AMOUNTS SE T FORTH IN CODE
SECTI ON 72(pl(2l(A), ANY PER IODIC INCOME, ANY WITH DRA WA L VAL UES
Pt,YABLE TO A LIVING EMP LOYEE, AND ANY DEATH BENEF ITS NOT PROV IDED FOR
c!Y INSURANC E ON THE EMPLOYEE'S LIFE.
3-6--15-3 : AMENDMENT OF PLAN : IF THE PLAN IS AME NDE D TO INCR EASE
BENEF1TS WHICH WOULD SUBSTANT IALLY INCREASE THE EXTENT OF POSS IBL E
DISC RIM\NATION AS TO CONTRIBUTIONS OR AS TO BENEFITS UPON TERMINATION OF THE
PLAN , THE RESTR ICT IONS SET FORTH ABOVE IN SECTION 1 AND IN SECTIO N 2 (WHEN
EACH SECT ION IS EFf'.ECTI VE), SHA LL BE APPLIED TO THE PLA N AS IF IT WERE A NEW
PLAN EST ABUSHED ON THE DATE OF SUCH CHANGE .
3-6-16-3 : L•i~tTATION OF BENEFITS : EFFECTIVE JANUARY 1. 198 7,
not withs anding an y other provision contained he rein to the contrary . the benelits
paya ble 10 a Mem !Jer from thi s Plan prov ided by C ity cont ributions sha ll be sub ject 10
the li mitat ions of In ter na l Reve nue Co de Se cti on 415 in acco rdance with A. and (B)
below :
A ( 2) b. Other am ount s which receive d spec ial tax benefil s, or con tr ibut ions
made by th e City (whe ther or not unde r a sala ry re ductior, agreeme nt) towards
t e purcha se of an annJ ity oe scri bed iii Internal Rev enu e •'.:ode Se ctio n i03(b)
(w et her or nol the ar.,ou nt~ ~re actually excl ud able lrom the g ross income o l the
~ .... e mber ).
'.fh e-te reg oing-1i mitations-shal l-<>ol-be-applieable-with-<espe,:Ho-any-Membe r
"-hoSe-an nual-Pension-und eHhis-P-l3 H-and-any-other-oefined-benelit-plan
ma inta ined -by-1he-E-mptoyeHs-less-1 han-1en-Iho usand--OOll ar s-t$,G,-OO O,O O)-,I
;uch-t.Aember-lias-no1-a1-any-Iime-parI ic~paIeo-in-any-det+neo-conIri bu 1ion -pIan
t"'ithirHhtHnean ing-o~ntema ~eve-nue-Gode-Seetion -4-l-5(k1~ain1a lned-by -ihe
G••~n-10-vent-1hahJ -Memb€F-li as-bee<>-e<ed iIeo-wilh-tes;..;h an-1e~O)-ye ars
01-Gred iled-Service.-t hi?-ma xi mum-annu a~nskm-a llowa ble-unde-f-th is-Secl+on
shall-be--<educ eo -by-mullipl yi nq-suc-1' m3x imum-annu ?.I pen,;ion -b y-a-fl aclion,--1he
r-,Jm era1o r-of-wh1ch is-the-number-of--svch -M ember's--yea,s-o l-Credilt:d-Servicc
ar-d-,he dcnomin aI or-o~ which ·s Ien-{10r-
EXCEPT AS Ft:;QV IDED l 'J 15) 8EL OW. WHIC H II. FCSES 1\DOIT IO !',\L
, '.'IT/\T ,c::s C: I TH: ,\'.'OUMTS P,WABLE TO l!H.',8EfiS V,11 H I ESS Ti',\': 1 E! I
· :1 YE/,RS C F SER .'!C E. Tf'E FOREGO ,rJG u r.11T/\T ,C,',S $, ~LL ,.or eE
. 5 .
APPLICAB LE WITH RESPECT TO ANY MEMBER WHOSE ANN UAL PENSION UND ER
TH IS f<ETIREI JEN T SYSTEM, AND ANY OT HER DEFINED BE NEF IT PLAN
MAIN TAINED BY THE EMPLOYER, IS LESS THAN TEN THOUSAND DO LLA RS
(10,000 .00), AND SUC H MEMBER HAS NO T AT ANY TI ME PART ICIPATED IN ANY
DEF IN ED CONTR IBUTION PLAN (WITH IN THE IAEAN ING OF SEC TIO N ,I 15(K) OF
THE CO DE) MAINTAIN ED BY THE EMPLOYER .
4 . IN THE EVEN T THAT A ME MBER HAS LESS TH AN TEN (10) YEARS OF
PA RTICIP ATION IN THIS RETIRE MEN T SYSTtM AN D PREDECESSO R PLA NS
HER ETO, THE DOLLA R LI MITATION OTHERWISE APPLIC ABLE UNDE R (1) ABOVE
SHALL BE RE DUCED BY MULTIPLY ING SUC H LIMI TATION BY A FR AC TI ON . THE
NUMER AT OR OF WHIC H IS THE NUMBER OF SUCH MEM BER 'S YEAf<S OF PLAN
PART ICIPATION (OR PAR T THEREO F), BU T NEV ER LESS TH AN ONE ( 1 ), AND THE
DENOMI NATOR OF WHICH IS TEN (10). THIS PARAGR APH SHAL L, TO T HE EXTEN T
REQU IRED BY THE SECRETARY OF THE TREASURY, BE APPLIED SEPA RAT ELY TO
EACH CHANGE IN BENEFIT STRUCT UR E HEREUNDER .
5 . IN THE EVEN T THAT A MEMBER HAS BEEN CREDITED WITH LE SS THA
TE N (10 ) YEARS OF SERVICE, THE PE RC ENTAGE -O F-AVERAGE -EAR NINGS
LIMIT ATIO N OT HERWISE APPLICABLE UNDER (2) ABOVE AND THE DO LLAR
AMO\JNT OT HE RW ISE APPLICAB LE UNDER (3) ABOVE SHALL BE REDUCED B Y
MULT IPLY ING EACH BY A FRACTION , THE NUMERATOR OF WH IC H IS THE NUM BER
OF SUCH MEMBER'S YEARS OF SERVICE (OR PART THEREOF ), BUT NEVE R LES S
THAN ONE (1), AN D THE DENOMINATOR OF WHICH IS TEN (10).
~ . The li mila ti on s of 1h i s Sec sion apply 10 a slraighl life ann ui ly wi lh no
anc ill ary ben efi1 s and to an annuity that consli tu te s a qual ifie d jo int ar d su rv iv or
annuil y, provided pa yme nl begins be1w een ages six l y•two (62) and sixly-live
(65). II paymenl co mmencc s b e fore age sixly•lwo (62 ). 1he forego i ng
limilat ions shall be re duced so 1ha1 1hey are Acluarially Eq · 'valen l 10 such a
benelil commenci ng al ag e six ly•lwo (62). Howeve r, t he ,educl ion of lhi s
pa rag ra ph shall not redu ce ihe limi \atio n below seventy-live 1housand dollars
(5 7~.000). i i pay men t com mences al1er age lilly-l ive (55 ). o r be low \he
Ac\uar ia l Equ ivalen 1 of se ven\y-l ive 1h ousand dollars (Si 5,000) commencing a1
ag e lilly -l ive 15 5). ii pa ymen \ co mmences before. age l i lly -l ive (55). If
paymen\ co mmen ce s aller age s ix ly•live (.6~). Iha limi1a1 ion shall be she _
Ac l uaria l Equ ivalenl o f a n i nely ihousand dollars ($90 ,0 00) annual be nefi1
comme nc ing as age sixl y-l ive (65). The inleresl assum pl ion for purpose s of
dele rm i ning Ac1ua ri al Eq uivalency u de r lhis paragraph shall be ihe in eres1
ra i e o :herw,se used lo r p urpose s of compuling oplional lorms of ,ncome payable
u nd"r 1he Plan . b us sh e ral e sh all no l be less lhan live perce nl 15,.,) an nually ,1
be nef ,1s co mmence be lore age si,1y -liv e (6 5) and shal l no s exce ed live pe rc en 1
(5 ",) annua ll y ii beneli1 s commence aller age si,1y -liv e (6 5).
~-On ly 1he speclic secl ions or subsecsions be ing amende d are se 1
::1 1h here in. /,II ot he r sec.1 ion s, 1t1 le s ai d pro vision s of Chapl er 6. Tille 3 , sha I
rem ,11 n in lull lo rcc and elf e:c,
ln•roduce d , read ,n l ull, ar d passe ~ on l irs l readio~ "" she 16111 da y c l
Sep terr,ber. -9 1.
. 6 ·
Publish ed as a f . fo r an Ordina nce on 1he 191 h da y o f Seplember, 1991.
Read by 1ille ar I pa ssed on final read ing on lhe 7Ih day of O~iobe r , 1991.
Publ is hed by · .le as Ordinance No .~-Series o f 199 1 on 111e 101h day of
Oclobe r, 199 1.
ATTEST :
~22ma tZJA.f,......,,w,"""'--v __
Pair icia H. Crow, Ci1 y Clerk
I, Palr ic ia H. Crow, Cily Clerk of lhe Cil y of Englewood, Colorad o, here by ceri ify Iha ! 1he
above and foregoi ng is a !rue copy of lhe Ordinance , pa ssed on fina l reading an d published by lille
as Ordina nce No.~-Serie s of 1991.
G?ak,,~J/.~
Pa tricia H. Crow
. 7.
Date
September 16. 1991
INITIATED BY
STAFF SOURCE
COUNCIL COMMUNICATION
Agenda Item
11 c
Subject Cost of Ltvtng
Non em erge n cy Pe.'lslon Board
Adjustment for
Nonemergency Pension
Rec ipi ents
Lorrain e Hayes. Dir ector of Financial Services
ISSUE /ACTION PROPOSED
The Nonemergen cy Pension Board recomm ends that City Council adopt an ordinance
amending the Nonemergency Pension Plan to provide a cost of llvtng adjustment to
the monthly amounts received by per·sloners and their beneficiaries. The cost of
llvtng adjustment would Increase monthly pension amounts by 3% per each partial
and whole year of retirement since January I, 1983. The maximum lnt'rease would
be 24%. The effe ctive date of the change would be r etroactive to January 1, 1991.
The propos<:d ordinance also amends the plan to Incorporate language to comply
with recent federal Income tax law changes.
PREVIOUS COUNCIL ACTION
Ordinance 34. Serl es of 1969 Esta bll s hlng Non emergency Pension Plan
Ordinance 58. Serles of 1975 Ellmlnattng Employees· Co ntributions and the Method
for Calc ulating Benefits .
Ord inance 11 . Serl es of 1983 AmendJng U1e MeU1od fo r Cal culating Benefits
Ordinance 3 7 . S erl es of 1987 Restating the Plan
This Is s ue wa s disc ussed at the Co uncil Study Session on Au gust 19 . 199 1.
STAFF ANALYSIS
At Its meeting on August 7 . 199 1. th e No nem erge ncy Fens Ion Board voted to
rec onunend tha t 1J1e lly a pprove a cos t of 1J,1ng Incr ease for r etirees an d their
benefi ciaries . No co st of lMng In crease had been approved s tn ce 1983 . Sinc e th at
Um r.. th e cons1 un er pri ce Ind ex ha d In creased a11 aver;.ige of 3 % per year In th e
De 1,ver area . Th erefo r e. th e Board ,,1 s hed to purs u e a cos t of ll ving In cre ase for Its
retirees to m a t ch Uiat rnt e of Incr ease.
The Board evaluated the status of the per.slon pl a n b efore m aking a recommendation _
lo Increase benents . The) found the plan to be In s ound fln a11 clal condition, with an
unfunded llablllty which was estimated to be fully funded b.1· 1993 If no Increase In
benefits were made. With the proposed Increase In benefits, the current unfunded
liability ts still estimated to he fully funded by 1996.
The proposed ordinance also Incorporates several changes Into the City Code which
comply with ch anges rece ntly enacted In federal tax law. These changes are requtred
In all p ension pl ans of this nature. however they will have no substantive trnpact on
the Cl~'s pension plan . The c hanges are designed prtnclpally to prohibit
d.lscrtmJnatlon In the ,;orporate er.vtrorunent.
FINANCIAL
The total dollar value of the Increase wtll range from 86.99 to $193.68 per month.
The average Increase per recipient will be approximately $46.85 per month. The
total Increase tn pension payments will be $3,232.72 per month , or $38,792.64 per
year .