HomeMy WebLinkAbout2008 Ordinance No. 052•
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BY AU TM ORJT Y
ORD INANCE NO . GJ-
SERIE S OF 200 8 --
COUNC [L BILL NO. 62
rNTRODU CE D BY COUNC IL
MEMBER MOORE
AN ORDINANCE AMENDfNG TITLE 3, CHAPTER 4, OF THE ENG LEWOO D MUNI CIPAL
CO DE 2000 , ENT ITLED "C ITY OF ENGLEWOO D NONEMERGENCY EMPLOY EES
RETIREMENT PLAN AND TRUST AS AMENDED AND RE STATED EFFECTfVE
JANUARY I, 1999".
WHEREAS , City Co un cil previ ously amended Title 3, Chapte r 4 of the Englewood Municipal
Code 2000 ; and
WHEREAS , requirements by the Internal Revenue Servi ce to maintain the qua lified status of
the Pl an .
NOW, THEREFORE, BE IT ORDAINED BY THE CITY CO UNCIL OF TH E CITY OF
ENGLEWOOD , CO LORADO , AS FOLLOWS :
Section I. The City Co uncil of tl1e City of Englewood , Co lorado hereby auth orizes amendi ng
Title 3, Clu!pter 4, Section 6, Subsectiou 5, of th e Eng lewood Muni ci pal Code 2000 to read as
fo llows, effecti ve January I, 20 02:
3-4-6-5 : Required Distribution of Retirement Benefits .
Notwithstanding any oth er provision of thi s Pl an, distribution of Benefi ts under thi s Plan shall
commence not later than Apri l I of the calendar yea r fo ll owing the later of th e ca lendar year in
which the Member attains age seventy and one-half(70 1/2) or the calendar year in which th e
Member retires. Di stri bution s shall be made in accordance wit h the reauirement s of rew lailims
under Code Section 40 l lalC9l as anolicable to sovemmeut al nlans including the miwmwD
incidental death benefit reauirements -
Sec tion 2. The City Council of the Cit y of Englewood, Co lorado hereby authorizes amending
Title 3, Chapt er 4, Section 16, Subsec tion 3, of the Englewood Municipal Code 2000 shall be
de leted in it s entirety and shall rend as fo ll ows, effective January I, 2008 :
3-4-16-3: APllllll Ben dit end CentribntiAR I imU5
Toe Piao incmoora tes bv reference the reauircments of Code Section 415 and fin al re g~
jntemrctjp g Code Secti on 415 as aPP licablc to this sovemmental re ti rement olan The cost-of-
liying increase of Code Section 415Cdl aba ll continue to aonlv to increase the dollar ben cfitlimit
of Code Section 4l 5Cbl after the Member 's se verance from cm ol oxment The limitation on
co ntributions of Cnde Section 4 I 5Cc} shall anolv to Member contributions that are made to th e
llf.,.'P AAGPUnt os des cri bed in Article Y Section 9 d The limit ati on vear is the ca lendar vcar
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Section 3. The Ci ty Counci l of tJ1e Ci ty of Englewood, Co lorado hereby aut horizes amendin g •
Title 3, Chapter 4, Section 17, Sub section 3, Sub sect ion s 8.1 and C, of th e Englewood Municipal
Code 2000 , to read as fo ll ows, effective Janu ary 1 2008 :
3-4-17: Mi scellaneous Pro vision s.
3-4-17-3: Direct Rollovers .
A. General , Titls section applies lo distributions ma rlr on or after January 1, 1993.
Notwithstanding any provision of the plan to the c •llrary that would otherwise limit a
distributee's election under this section, a distributee may elect, at the time and in the
manner prescribed by the board, to have any portion of an eligible rollover distribution
which exceeds $200.00 paid directly to an eligible retirement pla n specified by the
distributee in a direct rollover. If a distributee's direct rollover distribution is less than
$500.00, the distributee may only elect lo direct rollover 100 percent of the eligible
rollover distribution .
B. Definitions:
I. Eligible Rollover Distribution. An eligible rollover distribution is any distribution of
all or any portion of the balance to the credit of the distributee, except that an
eligible rollover distribution does not include: any distribution that is one of a series
of substantially equal periodic payments (not less frequently than annually) made for
the life (or life expectancy) of the distri~utee or the joint lives (or joint life
expectancies) of the distributee and the distribulec's designated beneficiary, or for a
specified period often years or more; any distribution to the extent such distribution
is required under Code Section 40l(a)(9); and the portion of any distribution that is
not in ·ol udable in gross income (determined without regard to the exclusion for net
unrealized appreciation with respect to employer securities). l'oP dlltrlh11lioa1 oa OP
•Re, Joa11•• y 11 19411 1 a porlioe or lhe dl11Pih111ioe 1h1H eot fail lo he oa ellglhle
rollo°'OP dlltrlhlioa menli hee1111e lho po,lioe eoe1ill1 or •Rer 111 emploi ••
eoelPih111ioe, -.·hieh •re eol iael11dlhle la g,o., ieeome, Ho~1eue,1 IHh p8Plloe
m•i he paid oeii lo H iedl»id111I ,elipea,eel 1eee11BI OP oae11it,• deserihed le
Seeliaa 498(1) o, !h) orlhe Code 1 e, lo• qHIIAed deA ■ed eoall'lhalioa ploa
duerihed le Seelioa 401(1) or 40~(•) er the Cede lhal •cree, lo 11p1Nlel1•
aeeeHBI fer 1mo11etl 18 lrae,fePFed1 ieellldieg oep1P1lel1 1eeo11elieg fep lhe
perlioa or ...... dillrihliaa • ·hieh i• iael11dihle la CP818 iaeome OBd lhe peAiOB
ef 11111ell dilffi1J11tiea "hiett is aot se iaehulihle, For distributions made after
Dsssmber 31 2007 a oortion of a distribution shall not fail to b1: AP clisible rollover
distribution mmlv because the oortion consists of after-tax Emnlovee contributions
which are not includible in wss income However such oortioo mav be tran~ferred
onlx to an individual retirement account or annuity describr4 io Section 408Cal or Cbl
of the Code or in a direct trustee-to-trustee transfer to a aualified trust described io
Section 40lfal of the Code which is exemrtfrom tax under Section 501Cal of the
Code or to an annuitv contract described ,;, Section 403fbl of the Code omvided
such trust or contract orovides for senarate accounting for amounts so transferred
land earnings thereon) including seuarate accounting for the oortion of such
distribution which is includible in gros s income and the oortion of such distribution
which is not so iocludible
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2. Eligible Re1irement Plan . An eligib le retirement pl an is an indi vidu al retirement
accou nt desc ribed in Code Section 408(a), an ind ividual retirem ent annuit y described
in Code Section 408(b), and annuity plan descri bed in Code Section 403(a), or a
qualified trust desc ribed in Code Section 40 1 (a), that accepts th e dislributee's
eligible rollover di stribution. However, in the case of an eligible rollover
distribution to the surviving spouse, an eligible retirement plan is an individual
retirement account or individual retirement annuity . Effec tive January l , 2002 , an
eligible retirement plan shall also mean an annuity contract described in Code
Section 403(b) and an eligible plan under Code Section 457(b) which is maintain ed
by a state, political subdivi sion of a state, or agency or inst rumentality of a state or
political subdivision of a state and which agrees to separately account for amounts
transferred into such plan fro m this Plan . The definition of eligible retirem ent plan
sha ll also apply in the case of a distribution to a surviving spouse, or to a spo use or
former spouse who is the altem•te payee under a qualified domestic relati on order,
as defined in Code Section 4l4(p).
3. Distributee. A distributec includes an employee or former employee. In addition , the
employee's or fonner emp loyee's surviving spouse and the employee's or former
employee's spo use or former spouse who is the alternate payee under a qualified
domestic relations order, as defined in Code Section 414(p), are dislributecs with
regard lo the interest of the spouse or former spouse.
4. Direct Rollover. A direct roll over is a payment by the plan to one eligible retirement
plan specified by the distributce .
5. Waiver o/30 Day Notice for Cashouts o/$5,000.00 ($3,500 .00 Prior to January I,
1998) or less. If a di stribution is one to which Code Sections 40l(a)9I I and 417 do
not app ly, such distribution may commence less than thirty (30) days after the notice
required under treasury regulation Section 1.41 l (a)-l l(c), is given ; provided that:
a. The Board clearly informs the member that the member has a right to a period
of at least thirty (30) days after receiving the notice to consider the decision of
whether or not to elect a distribution (and, if applicable, a particular
distribution option), and
b. The member, after receiving the notice , affirmatively elects a di stribution .
~ Pirtribution to IRA ofNon-mouse Beneficiary A Membeg ' non-soouse Beneficiorv mav
elect to have anv oortionofan elisible Plan distribution naid in a direct trus tee-to·trusttt
transfer to an indi vidua l rc;trement accoum or annuitv described in Section 40Ilc)(8)(B}li}
or liD of the Code that is cslt'blished to receive the Plan distribution on behalf of the
Benefi ciarv For oumoses of this Subsection C a trust maintained for the ben efit of one or
more desi&oated beneficiaries mav be the Benefidarv to the extent nrovided in rules
orescrihcd hv the Secretarv ofTreasurv If the Member dies after lhe Member's reauired
hccinnin& date as defined in Section 3-4-6-5 ber@f the rcauired minimum distribution in
the vear of death mav not he transfew4 according to this Subsection 3-4-17-3C The
reauirements of Code Section 402lc>C 11 > aonlx to distributions under this Subsection
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Sec 1ion 4, Safely Clauses . The Ci 1y Co un cil hereby finds , dc1ennines , and declares 1ha1 lh is •
Ordin ance is prom ul ga1ed under 1he ge nera l po lice powe r of 1he Ci 1y of Engl ewoo d, 1ha1 ii is
prorn ul ga1ed for lhe hea llh , sa fel y, and we lfare of th e public , and that th is Ordinance is necessary
for th e preserva tion of health and sa fet y and fo r the pro lectio n of publi c co nve nien ce and
welfare . The Cil y Coun cil furthe r delenni nes L~at the Ord inance bears a raliona l relati on to 1he
proper legi sla1i ve objecl so ught to be obtained .
Seclion 5. Severability. If any cla use, sentence , paragrap h, or part of thi s Ordinance or th e
application thereof to any pers on or circ umstance s shall for any reaso n be adjudg ed by a court of
compe lenl jurisdiction invalid, such judgment shall not affec l, imp ai r or invalida1e the remainder
of this Ordinance or it s application to other persons or ci rcwnstances.
Sec ti on 6. Inconsistent Ordin ances . All other Ordinances or portions thereof inconsis tent or
co nfli cting with this Ord inance or any po rti on hereof are hereby repealed to the extent of such
inconsi sten cy or co nflict.
Section 7. Effect of repeal or modification . The repeal or modification of any provi sion of
the Cod e of the Ci ty of Englewood by thi s Ordinance shall nol rel ease, extinguish, alter, modify,
or change in whole or in part any penalty, forfeiture , or liability, either civil or criminal , which
shall have been incurred under such provi sion , and each provision shall be treated and held as
still remaining in force for the purposes of sustaining any and all proper actions, suits,
proceedings , and prosecuticms for the coforcement of the penalty, forfe iture , or liability, as well
as for the purpose of susta ining any judgment , decree, or order which can or may be rendered ,
entered , or made in such actions , suits , proceedings, or prosecutions.
~irulk Penalty . The Penalty Provi sio n of Sect ion 1-4-1 EMC shall apply to each and
every violati on of thi s Ordinance .
Introduced, read in full , and passed on fi rst reading on the 15th day of September, 200 8.
Publ is hed as a Bill for an Ordinance in the City 's official newspa per on the 19• doy of September,
2008 .
Publi shed as a Bill for an Ordinance on the City's offic ial web site beg:nning on the 17"' day of
September, 200 8 for thirt y (3 0) days.
Read by lill e and passed on fin al readi ng on th e 6,,. ua;• of October, 2008 .
Publi shed by title in the City 's official newspaper as Ordinance No9' Series of2001 J n
Ilic 10th day of October, 2008. (
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I, Loucrishia A. Elli s, Ci ty Clerk of th e Cit y o f Englewood, Colorado, hereby ce nify that the
above and foregoing is a true copy o f the Ordi nance passed on fin al ead in g and publi shed by
title as Ordin ance No. Qi.Seri es of 2008 .
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COUNC IL COMM UN ICA TIO N
Date : Age nda It em: Subject :
Sep tember I S. 2008 9 ,l i Bill for an Ordinance Making Required Changes l o
th e NonE rn erge ncy Emp loyees Reti re ment Plan 10
retain "Qualified Statu s"
Initi ated By:
Finan ce and Administra tive Se rvices Depar tme nt
I Staff Source:
Frank Gryglewicz, Direc to r
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
C ity Council discussed this iss ue at th e Sep tembe r 8, 2008 Study Sess io n. Counci l di rec ted staff 10
prepare a bill fo r an o rdin ance makin g th e propos ed chan ge,,.
RECOMMENDED ACTION
City staff reco mm ends City Coun ci l approve th e altac hed bill for an o rdin ance making req uired
changes to th e NonEmergency Em ployees Retirem ent Plan (N ERP ) th at will insure th e qualified
status of the Plan .
BACKGROU ND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
Th ese changes are requi red 10 retai n th e Pl an's qua li fied statu s. A plan is qualifi ed if it mee ts
req uirem ents of th e In tern al Revenu e Code and, as a res ult, is eli gible 10 receive ce rtain tax b en efi ts
th at are instrum ental to th e accumulati o n and dist ribut io n of assets fo r th e so le benefit of th e
pa rti cipants and th eir beneficiaries .
FINANCIAL IMPACT
Thi s ac ti on \.Viii not have an im pa ct on th e City of Englewood's financial positi on as th e changes do
not impa ct fund ing requi rements or be nefi ts.
LIST OF ATTACHMENTS
Proposed Bill fo r an O rdinan ce