HomeMy WebLinkAbout2008 Ordinance No. 053•
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BY AUTH ORITY
ORDINANCE NO . '.).)
SERIES OF 2008 --
COUNCIL BILL NO. 63
INTRODUCED BY COUNCIL
MEMBER MOORE
AN ORD INANCE ADOPTING AMENDMENTS TO THE CITY OF ENGLEWOO D
FIREF IGHTERS PENS ION PLAN DOCUMENT (THE PLA.'I).
WHEREA S, the City of Englewood (th e "Em pl oyer") esta bli shed the Cit y of Engl ewood
Fi re fighter s Pensi on Plan (the "Pl an") effective as amended and res tated January I, 1999 ; and
WHEREAS , pur uant to Article XIII of th e Plan , tho Empl oyer has th e authority to amend
th e Plan , to comply w:th State or Federal requirements and maintain th e qualified statue of the
Pl an; and
WHERE AS , the City of Englewood deems it advisable to amend the Plan to comp ly with the
tax law chan ges and to provide active firefight ers a death benefit.
NOW , THEREFORE , BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD , COLORADO, AS FOLLOWS :
Secti on 1. City Council hereb y adopts the follow in g amendments to the City
of Englewood Firefighters Pen sio n Plan effective January l, 2008, to read as
fo ll ows:
l . Restate Arti cle XI in its entirety to read as follows:
Annual Benefit and Contribution I timits
The Plan incomorates hv reference the reauiremcnts of Code Section 415 and final reeylations
intemre tinv Code Section 415 as aoolicable to this sovt:mmentailltirement ol ao The cost-ofr
lixine increase of Code Section 415fdl sha ll cont inue to aoolv to increase the dollar benefit
limit of Code Section 41 Sfbl after the Particioant's severance from emnlovmem The
limit at ion on comributious of Code Section 415 Ccl sha ll annlv to Parti cinant contributionstha\
are made to the PROP account as described in Article Y Section 8 d The limitauo n vear:..is
the calendar vear
2. Add two sentences to the end of M iele XV , Secti on 2.a, to ren d as follows:
For distribu ti ons made after December 31 '007 a oortion of a di!ilribution sha ll not fail to be
nu eligib le ro ll over di stribution merclv because the oort ion consists of afteHax EmPlovee
contribut ions which are not includible in wss income However such oortion max be
transfen;ed onlx to anv indiv idual retirement account or nn nuitv described in Section 408lal or
Cb/ of the Code or in a direct trustAA-to-trustee transfer to a aual ified trust described in Sec tion
40llal of the Code which is exemm from tax under Sectio n 50llal of th e Code or to an aDWlllY
co ntract described in Section 403lbl of th e Code orovided 1uch trust or contract orovides for
scoarate accountinv for amounts so transferred land earnings the reon ) including senarate
9 b Ii
fl.WllUlliDg for th e nooi oo of such di stribu timLwhich is inchtdible.in.ws s.i nco me nn~
~)uch dj s1rjbu1ion whjch jSllnl,.Sll,i®[udilil;.
3. Add Secti on 3 to Article XV to read as fo ll ows :
Scc.tion 3 Di stribution to IBA ofNo n·soou~e Bencfi cia.a..
A Particioom·s non-s oouse BcneficiPIY mav elec, to have anv nortion,of,an elivibl e Plan
distribution naid in a direct trustee-to-trustee transfer to an individual rctiWnsm account or
aonuitv described in Section 40 I CclC8lfB)(D or OD of th e Cnds;,,that is estab li shed to receive th e
Plan distribution on behalf of the Beneficiarv For 2umoses of this Section 3 a tru st
maintained for the benefit of one or more desigpated benefidaries max be the Beneficiao' to
the extent nrovided in rules prescribed bv the Secre tao: ofTrcasua lfthe Particinant dies
after the Particinant's reauircd beeinnine date as defined in Section 10 of Article Y the
tccmired minimum distribution in the xear of death mav not he transferred accord ing to this
Section 3 The reauiremem s of Code Section 402 CclCl ll aoolx to distributions under this
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Section 2. The following amendments to the City of Eng1ewood Firefighters
Pension Plan effecti ve Jan uary I, 2002 , to read as follows :
4. De 1etc the paragraph immediately following Article V, Section 8.m(6) that begins with the
phrase "Regard less of form of payment " and add the following new Section 9 to Article V:
Section 9 Reauired Distributions
Distributions shall he made in accordan ce r ·;m the requirements of regu lations under Code
Section 401Cnl(9l as APPiicab ie to sovemmenta l Plans in cluding the minimum incidemal death
benefit reouirements and the reauired be&innins date rule The reauired beginnin g date rule is
that distribution ofa Particinant's benefit shall be&io no later th an the Aoril I followin g the
later of th e ca lendar vear io which the Pani cinant attains ave 70 ½ or tmminate,. emolovment
with the Emolover
5. Amend the last phra se of Article XU\ to read as fo ll ows:
"provided however that Pinn amendments must satisfv the aoo li cab le reauirements of Sect ion
31 -30 S-' 10 of the Co lorado Revised Statutes rc2ardingthe consent of alkt!st sixtv ·fi vc
llCKCllt C65 %l of th e Pnni cioants
Section 3. The Englewood City Co uncil hereby adopts the following amendment s to death
be nefit provisions of the City of Englewood Firefight ers Pension Plan , effective Janu ary I, 2008,
to read as fo ll ows :
I. Amend the beginning phrase of the first sentence of Article VU, Section I, to read ".lUI
PnrticinaotJballdie" instead of"lf B retired participant who is receivi ng a Pension benefit
hereunder sha ll die."
2 Add the foll owing senten ce to th e end of Artic le v n, Section I:
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In order to sa tisfy th e incidental death benefit reouiremcm s of iederaltax law th e sum of the
fo ll ow in@ monthlv beneflLamo.unts.oaid from theJ!laILtO aJ!m,t,ici~ivors shall not
exceed I 00% of 1he mo nthlv bene fit being received bx th e Panikioant from th e Pl iW..il1..lh;
time of the Parti cina m's dea th · Cal the monthlv death benefit oaid to a Paoicin~11t's survivjng
soouse or deoend entnnrem or unrent s acco rdin° to thi s Sec ti on olu s Cbl the monthlv
survivor benefit £if anxl naid to the Partic io ant ·s survivinv soouse or Bencfic iarv bx a i~
and suD'.i vor benefit ootian according to Aoicle YI The monthlv dea lb benefit om~
under thi s Section shal l be reduced if necessa ry to sa tisfy the oreccd in@ sentencr-.
Secti on 3. The Mayo r and Ci ty Clerk are authorized to sign and attest the Amr.,d ment s to the
Ci ty ofEnglewood Fi refighters Pension Plan Doc um ent.
Int rod uced , read in fu ll , and passed on fi rst reading on tho 15th r. ,y ~t September, 2008 .
Pub li shed as a Bill fo r an Ordinance in the City's officia l newspap<r on th e 19" day of Se pt ember,
2008.
Publ ished as a Bill for an Ordinance on the City's official" ,1 ,.it ,eginning on th e 17th day of
Se ptember, 2008 fo r thi11y (30) days.
Read by titl e an d passed on fina l rea ding on the 6th day of October, 2008 .
Pu blished by titl e in the Ci ty's offic ia l news paper as Ordinance No 51, Series of 2008 , on
the I 0th day of Octobe r, 200 8 .
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I, Lo ucris hi a A. Elli s, Ci ty Clerk of th e Ci ty of Englewood, Co' ,-.do, hereb y ccr.ify that the
above and forego ing is.>,ljl>c co py of th e Ordin ance passed on fin a1ding and publi shed by
titl e as Ordina nce No .~ Seri es of 200 8 .
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COUNCIL COMMU N ICATION
Dat e: Age nda Item : Subj ect:
September I 5, ~008 9 a ii Bill fo r an Ordinance makin r qcired changes 10
th e Fir efighters Pensio n Pl an to retain "Qt1alified
Statu s" and to comply w ith IRS rul es for dea th
benefits and provid e a bene fit fo r ac ti ve firefighters
who die prior to re tireme nt
Initiated By:
Finan ce and Adminis trativ e Se rvice s Depa rtm ent
I Staff s,:~rce:
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4 tc:1nk C r.1glew icz , Dir ec tor
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
Ci ty Council discuss ed this iss ue at the Sep tem b er 8, 2008 Stu dy Session. Counc il direc ted staff to
prepare a bi ll fo r an ordin ance mak in g the propc;ed chan ges.
RECOMMENDED ACTION
City staff recommends City Co uncil approve th e attach ed bill fo r an o rd ina nce m ak ing required
changes to the Firefighters Pensi on Plan th at will insu re th e qualified stat us of the Pl an.
BACK G OUND, ANALYSIS, AND ALTEitNATIVES IDE ,,fflFIED
Th ese cha nges are required to r tain the Plan '$ qual ifie d status . A p lan is qt1alifi ed if it mee ts
req t1irements of th e Internal Reven ue Code and, as a res ult, is eligible to rece ive cert ain ta x b enefi ts
th at are ins trumental to th e accumulation and distr ibution of as sets for th e sole b enefit of th e
participa nts and the.i r benefic iari es.
In add iti o n to th e required am endments discussed above, th e Fir efi ghters Pensio n Pl an re q uires
,1 lcllti o nal la11 gt1 age in th e Pl an D ocument to comply with IRS rul es fo r dea th b enefi ts and p rovide
,1 111 e firefigh ters a benefi t if th ey should die prio r to retirement .
FINANCIAL IMPACT
Th is ,1 11 0 11 wil l not h;,ve an impact o n th e City of Englewood 's fi nancial p osi ti o,, as th e chan ges do
not impa ct fun din g requirements or benefi ts.
LIST OF ATTACHMENTS
Pr o po sed Bill fe r an O rdi r.anc e