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Home My WebLink About2003 Ordinance No. 006• • • ORD I NANCE NO.~ SER IES O F 2002/2003 BY AUTI-IOR ITY COUNC IL BI L L NO. 74 I NTRODUCED BY COUNC I L MEMBER GARRETT AN ORD INANCE ADOPT ING AMENDM ENTS TO TH E CITY OF ENG LEWOOD FIREFIGHTERS PENS ION PLAN DOCUM /£NT (THE PL AN). WHEREAS . th e Cit y c,f En glewood (lhc "Employer') es tab li shed th e Ci ty of Eng lcw or-d Firdigluers Pension Plan (the "Plan ") effective w amended al!'I resln tcd Janua ry I, 1999 ; and WH ERE.AS, pursuant to Articl e XIII of the Plan, 1he Em pl oye r has the ut llh ority to umc i.d di~ Pl an. subjec t 10 the conse nt of at least sixty.five perce nt (6 5%) of th f" ac ti ve Parti cipa nt s at the time of the am endm ent : and WHEREAS , ai l of th e ac ti ve Part ic ip ants at th e time of the amendment voted in favo r: and WHEREAS , the Cit y o f Englewood dee ms it advisab le to ame nd th e Plan to comp ly wi th th e tax law c hanges from th e Eco nomi c Growt h and Tax Relief Reconci li ation Ac t of 200 1 (EGTRRA). NOW, THEREf'')RE . BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD. COLOi<ADO . AS FOLLOWS : ~-Ci ty Council hereby adopt s th e amcndm~nt s to th e Ci ty of Eng lewood Firefighters Pensi on Plan effect iv e January I. 2002 , to read as follows: c. Com pensati on: All ba se pay (as dcri ncd in th e Cit y of Eng lewood 's Perso nnel Poli cy and Proc edure s) received by the Participant for hi s Co vered Emp loy ment , includ ing longev it y pay , holiday pny, sick pay , and vac ali on pay taken in th e normal cou rse of cmpl 0y ment , and shi differential, but Co mpen sa ti on shall exclude co mp ensa tion fo r overt im e (or compcnsatio,1 in li eu of ove rt ime requ ired un der the Fa ir La bor S1and ard s Ac t), clothin g all owance , lump -sum amount s paid in li~u of ac cumulated vacation, holi Jays , and sic k leave , and compensatio n imp ut ed as a result of th e Particip ant 's use of t he Emp loye r's au tomo bi le. A Participa nt's Co mp ensation shall in clu de any amo unts defe rred as 10 such Participant under Co de Se ct.ion 125, Cede Seetiett 132/Q(4) 457 or lffl<lef-C ede See ti en or 414(h ), exocpt to th e ex tent such amr,u nts •vould be exc lu ded und er 1hc immediate'./ pre ce ding se nten ce. Com pen sat ion 1akcn into acco unt und er lhc Pl an shall nol exceed $200,000, adjus ted for changes in the cos t of living as provided in Code Sec ti on 4 I 5(d}, fo r th e purpose of calculating a Pnrticipa nt's Acc ru ed Pension (i ncludin g the right to any op ti ona l bcneri t provided un der the Pl an) for any Pl an Yea r co mmenc ing aflcr Decembe r 3 1, 1983 . In add iti on to oth er appl ica ble limitati ons se t fo r in 1h c Plan, and notwithstandin g any ot her pro vfr ion of the Plan to the co nt rary, for Pla n Years beg innin g on or afte r Jan uary l , 1996, th e ann ual compe nsatio n of each -1- .. noncligiblc Parti cipant " taken int o 11 '"Cunt under the Plan shall not exceed the OBRA '93 annu al compen satio n 1, •it. The OBRA '93 annual co mpensation limit is $150,000 , as adjusted by th e Commi ss ion er for in cre ases in the cos t of living in accordance wi th Code Secti on 401 (a)(l7)(8). For Pl an Ye ars be gi nning on or a0cr Jnnu acy 1 2002 rtw annu al conmcn sa ti on of eac h ' 1Noncligiblc Particip ant " taken into acco unt under the Pi nn shall not exceed $200 000 a . ind exe d for cos •-of-li vin~~ ·, acco rd ance with Code Sec ti on 40 I Ca}OZ l<Bl The cost-of-living adjustment in effect fo-. a calendar year applie s to any period , not exceeding 12 month s, over which compensation is dctennined (determination period) beginning in su ch calendar year . If a determination peri od con sists of fewer than 12 months , th e OBRA '93 annual compen sati Jn limit wi ll be multiplied by a fraction , the numerator of which is the number ( mo.11bs in the determination period, and the denominator of which is 12 A "Noneligible Participant " is any Participant who first became a Participant in the J'lan during a Plan Year beginning on or after January t , I 996 . Effective January I. 1989, through December 31, 1996 , in dctennining the Compensation of a Participant for purposes of thi s limitation , the rules of Code Section 414 (q)(6) shall apply, except in applying such rules, the lenn "family" shall include only the spouse of the Pnrti cipant and any lineal descendants of the Participant who have not attained age 19 be fore the close of the year, effective January I, 1989 throu gh December 31, 1996, if, us a result of the application of such rules the adju sted annual Compensation limitation is exceeded then the limitation shall be prorated among the affected individuals in proportion to each such individuaJ 's Compen sation as detennined under thi s Section prior to the application of this limitation . 2. Article XI. Specjal Governmental Requirements. Section J.a.(1) shall be amended in its entirety to rend as foilows : Section 1. Maximum Annual Benefit Under Code Section 415 · Notwith standing any other provi sion con ta ine d herein to the con1rary , th e benefits payab le to a Participant from !hi s Plan shall be subject to the limitations of Code Section 415 in accordance with a. an d b. below : a. Defined Benefit Plan(s} Only : Any annual Pen sion payable to a Participant hereunder (including any annu al Pension paid to such Participant fro m another defined benefit plan of th e Employ er) shall not exceed th e le ss er o f: (I) -Ntttety One Hun~rcd Sj xty Thousand Dollars~ ~or, if grea ter , the amount of straight life , or qualified joint and survivor annuit y accrued by the Participant as of the la st da y of th e Limitation Year beginning in 1982 , with thc-NiftelyOn c Hundred Si xty TI,ousand Dollars (~) ~amount adjusted for incre as es in the co st of living , as prescribed by the Secretary of u,c Tre asury or his delegate, effective January I of each calendar year and appli ca ble to the Limitation Year ending with or within such calenda r year , or -2- • • • • • • 3. ART ICLE XV . DIRECT ROLLOVEP.S , Sect ion 2.b .. Ejigj bje Reti remen t Billl, shall be rev ise d in its ent iret y 10 re ad as follows : b. Eli gib le Retireme nt Plan: An Eli gi bl e Retirement Plan is an indi vid ua l retir emen t accoun t de scr ibe d in Caci.; Sect ion 40 8(a), an individua l re tireme nt an nui ty desc ribed in Code Sc cdon 408(b), and annuit y plan de sc ri bed in Co de Sec tion 40 3(a), <>Fa qua lifi ed trus t desc rib ed in Code Sec tion 40 l (a)-#t&Hteeept-5 an annuit y contrac t descr ibed in Code Sccti Yn 403(b) or an eligib le pl an under Code Sec ti on 457(b) which is maint ain ed by a stat e poljt ira l subdivision of a st~1ny ag ency or in strum en tali ty of a stat e or politi ca l subdiv ision of a~ which agree s to se pa ra tely ac coun t fo r amo unts tran sferred int o such plan from thi s Pl an. For th e pu rposes of Direc t Roll overs , Eli gi ble Reti.~cme nt Plan s includ e on ly th ose that will acc ept th e Dis tribut ee's Eligib le Roll ov er Di stribution . H-, in the eas e ef e11 eligible Roll e , er Di stribt:Hie11 10 the s1:1r; i, iRg speHse, BR E-ltg+ble Retirem eRI PleR is a11 iRdi • iE:l1:1 al retirement eeee1:1nt er inE:liviE:l1:1al retire1:neHt etuttt~ Sec ti on 2. The Ma yo r and Cit y Clerk arc authorized to sign and attest the Am endment s to th e Cit y o f Englewood Firefight ers Pen sion Plan Doc ument. Int rod uced , rea d in full and pass ed on first re adi ng on the 16th day of Dec ember, 2002 . Publi shed as a Bill fo r an Ordinanc e on the 20" day of Dece mb er, 2002. Read by titl e and pass ed on final reading on th e 6'' day of January , 2003 . Publi shed by titl e as Ordi nance No.~. Serie s of 2002 /2003 , on the 10'' day of Ja nua ry , 2003 . I. Loucris hia A. Ell is, Ci ty Clerk of th e Ci ty of Eng lewood , ·,bovc and for egoj'~g is a tru e copy of the Ordinance passe d on fi Ordinan ce r~o . ~·· Series of 200 2/2003. -3- • • COUNCIL COMMUNICATION Date Age nd a Item Subj ect D ece mber 16, 100 ~ 10 a iv O rd inance adopting amenor,er,\s to the City of F.ng lewood Firefighters Pens ion Pl an Document [th e Plan ) Initiated By Staff Source Citv of Eng lewood, Fi nance and Administrative I Frank Gryglewicz, Director Serv ices Dec :., cm en t COUNCIL GOAL AND PREVIOUS COUNCIL ACTION The Ci ty Council passed O rdinance 46, Series oi 1999 , adopting an amended City of Engle wood Firefighters Pensi on Pl an doc ument. RECOMMENDED ACTION Staff recommends th e City Council approve th e attached b ill ior an ordina nce. BACKGROUND , ANALYSIS, AN D ALTERNATIVES IDENTIFIED This o rdin ance does n o t substantiall v chan ge th e current level of pensi on benefits for th e Firefighte , Pens ior. Pla n pa rticipan ts. The o rdinJnce makes changes required by the Interna l Revenue Service [IR S). Th e Plan docum en t is am ende d 10 comply w ith iederal requi re m en ts. FIN ANC IAL IMP ACT Non e. LIST OF ATTAC HMENTS Pr 0posed ordinance.