HomeMy WebLinkAbout2003 Ordinance No. 007•
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ORD INANCE NO._!}_
SERIES OF 2002 /2003
BY Al!TI IORITY
COUNC IL BILL NO . 75
INTRODUCED BY COUNC IL
MEMBER GARRETT
AN ORD INANCE ADOPTI NG AME NDMENTS TO TH E CITY OF ENGLEWOO D PO LI CE
OFFI CERS PENSION PLAN DO CU ME NT (THE PLA:--1).
WHEREAS , City Counci l previ ,as lv adopted an amend ed City of En glewood Po lice
Officers Pension Plan by Ordin ance 47, Ser ;,, of 1999 , and
WHERE AS, certain othet ,unc :· .:en~s are neces sary to meet requiremen ts by th e
Interna l Revenu e Service .
WHEREAS, the City of Engle woo d (the "Empl oyer) es tablished th e City of Englewo od
Po li ce Pen sion Plan ("Pen sio n Pl an"), effec ti ve as amend ed and restate d Janu ary 1, 1999; and
WHEREAS , pursu ant to Artic le Xlll of th e Plan, the Empl oye r has th e authori ty to
amend the Plan , subj ec t to th e con sen t ofat least sixty-five perc ent (65%) of th e ac ti ve
Part-ic ipant s at the tim e of the amendmen t; and
WH EREAS, all of th e ac ti ve Part icipants have co nsen ted to th e amendm en ts; and
WHEREAS , th e City of Engle wood dee ms it advi sable 10 am end the Pl an to comp ly with
th e tax law chan ges from the Ec onomic Grow th and Tax Relief Reconciliation Act of 200 I
(EGTRRA).
NO W, TH EREFORE , BE IT ORDA INED BY T l-IE CITY COUNCIL Of' Tl IE CIT Y
OF ENGLEWOOD , CO LORA DO, AS FOLLOWS :
Si.:u ion I. Cit y Counci l heri:by ad opts the amt!ndmcnts 10 the Cit y of Eng lewo od Polic e
Offi cers Pension Pla n e ffect ive Jan u:i ry I. 2002 , to read as fo ll ows:
TH IRD AMENDME NT
TOTI-I E
CITY OF ENGLEWOO D POLI CE PE NS ION PL AN
As Amend ed :md Re stated , Effct .. }vc Jan u:iry I. 1999
The Plan is hc.:n:by amcndcd . ..:ffcc tivc Ja nu ary I. 200:! as fc ,ll ows:
AR TI CLE I. P RPOS E A:-<D DEFNITI ONS. Sect ion ".c. Cn 111pensa1i on sha ll be amended in
i1 s ..:mi n:t_v 1c:.1d as fo ll ows:
10 b vii
e. Compensat ion: All bas, pa y (as defined in 1hc Cit y of Eng lewoo d's Perso nn el Poli cy and
Pro ced ures) received by the Part icipant for ni s Cove red Emp loyme nt, includi ng longev it y pay ,
holid ay p.1y, sick pay , and vacation pay mken in 1hc normal cou rse ofcmploymcnt1 and shift
diffe rentia l, b~t Compensation sha ll exc lude compensation for overtime (o r co mpen sation in lieu
of overtime required unde r the Fa ir Labo r Sta ndaids Ac t), clot hin g all owa nce , lump-sum am ounts
paid in lieu ofaccu1Pu la1.:d vacation, ho lid ays, and sick leave, and co mpensat ion imp u1cd ns a
resu lt of the Partic ipant's use of the Emplo vcr's automobi le. A Partic ipant 's Compcnsn:111n ,li .. l'
in cl ude any amou ni s deferred as to suc h Partic ipa nt un der Code Section I 25, ~Ii ™ 457 or••••• Gede See1 ien 1 14(h), except to the extent s uch amounts would be
exc luded under the immedia tely preceding sen tence. Co mpen sa tion taken into ai;count under the
Plan shall not exceed S200,000 , adjuste d fo r changes in the cos t of liv ing a•. prov ided in Code
Secti on 41 S(d), fo r 1he purpose of calcu lati ng a Participa nt 's Accrued Pe nsion (i ncl ud in g 1hc c,,:01
to any opt iona l be nefit prov ide d unde r the Plan) for any Pla n Year comme ncing afte r D ec1.ll,l'{ ·
31, 1983.
Un addition to other ap plicab le limitati ons set fonh in the Pl an, and notw iths wnding any other
provision of the Plan to the contrary, fo r Plan Year.; begi nn ing on or aft,,, 'anuary I, 1996, the
annu al co mpe nsati on of eac h 11 Non clig ible Pani cipa nt '' ta ken int o accoui •t Jn ~!e r th e:: Pinn shall
not excee d ihe OBRA '93 annua l com pensation li mit The OBRA '93 ru .ual com pensatio n li mi t
is $150,000, as adj usted by th e Co mm i~.;io ner fo r in creases in th e cost of living in acco rdance
with Code Sec ti on 40l (a)(l 7)(8). fs2.L"lan Year s becinnins on or aOer January I 2002 the
annual comoeosatioo of each "No neJigib le Panicioant" taken into account under the Plan shall
not exceed $'00 000 as inde xed for cost-of.livingincreases in accordnnce with Code Section
1llllal02}CBJ
Th e cos t-of-li ving adj ustm,~n t in effect fo r a ca lendar year applie s to any peri od, not exce eding
12 month s, over whic h omp ensation is dete rmin ed (determin ation period) beg innin g in such
ca lenda r yea r. If a detenn in atio n pe riod co nsists of fewe r th an 12 months, the OBRA '93 annu al
com pensa ti on li mit will be mu lti pli ed by a frac tion, th e num erator of whi ch is the number of
month s in th e dete rmin atio n pe ri od, an d the de nom in ator of whic h is 12. A ''No neli gible
Parti cipant " is any Parti cipa nt who fir st became a Pa rtic ip ant in th e Pl an durin g a Pl an Y ca r
beginn ing on or afic, Ja nu ary I , 1996 .
Effec 1ive Jai ,11ary I , 1989 thro ugh Dece mbe r 31, 1996 , in determi nin g th e Co mpensati on of a
Participant for purposes of th is li milation, the ru les of Cod e Section 4 14(q)(6 ) sha ll apply , except
in app lying suc h ru les , the term "fam il y" shall include onl y 1he spouse of 1he Pa rt ic ipant und any
li nea l descenda nts of the Panicipa nt who have not attai ned age 19 befo re the close of th e yea r,
effec tive Ja nuary I, I 89 1hrough Decembe r 3 L 1996, if, as a result of the app li catio n of such
ru les the adjusted annua l Compe nsati on li mita tion is excee ded the n the limi ta ti on shall be
prora ted am on:.; the affect ed individua ls in proportio n to eac h suc h in dividua l's Compensatio n as
detenni ned unde r th is Section pri or to the app li catio n of this li mit ati on.
2. ART ICLE XI. Specia l Govemmema l Rt!gu iremems , St!c tion I.a.{ I) shall bl• ame nded in it s
ent irety to read as fo ll ows:
Sect ion I . ~fax im utT' nnua l Be nefit Unde r Codi! Section 415 : Notwit hstanding :my othe r
pro visio n co nrn ine d herei n to 1he co ntra ry, the bcnc fi1 s payable to a Pa ni cipa nt from 1hi s Plan
sha ll be subject 10 1he limirn.11 ons of Code Sec1ion 415 in acco rduncc wit h a , and b. be low:
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a. Defi ned Benefit Plan(s ) On lv: Any annu al Pension pa yab le to a Parti cipan t
hereund er (in cluding an y ann ual Pen sion pa id to suc h Partic ipant fr om an ot her dcfin 1:d bcncfit
pl an of 1he Emp loyer) shall nol exceed 1hc lesse r of:
(I) Nittety-On c Hu nd red Sj xt y Th cusan d f£9G;OO()) Dollars (S 160,000) :1111ou n1
adju tcd fo r increases in th e cos t of living , as presc ribed by the Sec ret ary of the Treasury or his
de legate, effec tive January I o f eac h ca lcn dai .-c~i 1.md app li cab le 10 th e Limitat ion Yea r ~ndin g
with o r wi th in suc h ca le nda r yea r. or
3. ART ICLE XV . DIRECT RO LLOVERS , Se c1i on 2.b ., Eli eiblc Re1iremen 1 Pla n, shall be re vise d
in its e nti rety to read as fo ll ows :
b. Eli gib le Re1 ircment Plan: An Eli gibl e Rc1 iremen1 Pl::.n is an
ind ivid ua l ret ireme nt accou nl desc ri bed in Code Sec ti on 408(a), an ind ividual reti rem ent annuity
desc ri bed in Code Sec1ion 408(b), an ann uily pla n de sc ribed in Code Sec tion 403(a), e, a
qualifi ed trust desc rib ed in Co de Sec ti on 40 I (a), t-htu-eeee~s OP apgµjty contract described jg
Code Section 403Cb}. or an eljgibie nl an under Code Section 45ZCbl which is main mioed bv a
sta te Politica l subdivision of a smt or anv aeeocv or instrumentaiitv 2f a state or Politi ca l
su bdivi sio n ofa srnte and which agrees to scnaratelv acc ount for amoums tmos ferrc d into such
Wiln from this Pla n For the numoses of Direct Rollovers Elieib le Retirement Plan s include on lv
those that wj)J acce pt th e Di stri b utee's Eli gibl e Rollover Di strib ut ion. HeweYff;-ffl-l-he-eese-e.f-an
~ligi hl e Rell a ·er Di s1ri81:H i0R to the sur i , in g s pel:lse , aR E:lig il:i le RetiremeRt Pl oR is an
~I-retireme nt aeemmt e r iRdi ,·i81:1:a l ret ir emeftt-afl ~
Section 2. Th e Mayor and City Clerk are auth orized to sign and a ttes t th e Ame nd me nts
10 the city of Englewood Poli ce Offi cers Pension Pla n Doc um ent.
ln1rodu ce d, rea d in full and passed on fir SI read in g on 1he 16° day of De cembe r, 2002 .
Pub li shed as a Bill fo r an Ordin ance on 1he 20'' day of Decem ber , 2002.
Read by 1itle and passe d on fi n,I readi ng on 1he 6'• day of Jan uary , 2003.
Pub li shed by 1i1 lc JS Ordinan ce No. 1_, Series of 2002 /2003 on 1he Io •• day of
Ja nuary , 2003 .
I, Loucrishia A. Elli s, City C lerk of the City of Engl ewood, Colorado, hereby ce nify that the
above and forego/Jg is a true copy the Ordinance passed on fin al re adi ng and published by titl e 1s
Ord inance No. , Series o f 200212003 , on the 10th day of January, 2003 . •
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COUNCIL COMMUNICATION
Date Agenda It em Subject
Dec embe r 16, 2002 10 av O rdin ar.ce adoptin g am end ment~
10 the City of Englewood Po li ce
Officers Pension Plan Document
(the Pl an)
Initiated By Staff Source
City of Englewood. Administrative Services I Frank Gryglewicz, Director
D epa rtment
COU NCIL GOAL AND PREVIOUS COUNCIL ACTI ON
Th e City Co un cil passed O rdinance 47, Series o f t 999, adopting an amended City of Eng lewood Polic e
Officers Pensi o n Plan document.
RECOMMENDED ACTION
Staff re co mmends the City Cou ncil approve the attached bi!I fo r an ordinance.
BACKGROUND , ANA LYSIS , AND ALTERNATIVES IDENTIFIED
This ord inance does not substan tiall y c hange the c urrent level of pension benet1ts fo r the Police Officers
Pension Pl an participants . The ordinance m akes c han ges required by the In ternal Revenu e Service (IRS ).
The Plan document is amended le comply with federal requirements.
FINANCIAL IMP ACT
N one .
LI ST OF ATTAC HMENTS
Proposed o rdinan ce .
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