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Home My WebLink About2001 Ordinance No. 018·, . • • • ORDINANCE N0. /2.. SERIES OF 2001 BY AUTHORITY COUNCIL BlLL NO. 17 INTRODUCED BY COUNCIL MEMBER GARRETT AN ORDINANCE AMENDING TITLE 3, CHAPTER 4, SECTION 3 ANO ADDJNG A NEW SECTION 18, OF THE ENGLEWOOD MUNICIPAL CODE 2000 PERTAINING TO THE CITY OF ENGLEWOOD NONEMERGENCY EMPLOYEES RETIREMENT PLAN. WHEREAS, currently the non-emergency e mployees are required to be enrolled in a dffined benefit pension plan which provides a monthly retirement payment based on final average earnings and years of service; and WHEREAS. as the workforce has become increasingly mobile, more employees expect their pension benefits to be portable weU; and WHEREAs, for this reason, th.e on-Emergency Pension Board co nsidered and approved adding an optional defined contribution pension benefit to the Plan; and WHEREAS, this benefit i" oes not guarantee a fixed pension benefit, only the amount contributed by the City and employee is fixed ; and WHEREAS the benefit amount at retirement is a function of time and investment performance , allowing employees this option is a needed recr ui tment tool; WHEREAS, the Englewood Non-Emergency Pension Board voted to approve the proposed changes t.o the Plan ; and WHEREAS, the approval of this Ordinance will allow on-Emergency Employees the choice of the defined benefit pension plan or the defined contribution pension plan; OW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS: ~-The City Co uncil of the City of Englewood, Colorado hereby amends T itle 3, Chapter 4, Section 3, Subsection 2, of the Englewood Municipal Code 2000, to read as foUowa : 3-+-3 . : Employees Hired After January 1, 1970. For each Employee hired after January l . 1970, @d prior to May 21 200l, membership in the Plan shall be a condition of em ployment and each Employee s hall become a Member on the date of employment. "•1ch Employee shall be required to complete the form of memberslup agreem~,,t at the time of enploymont eleet:iett or appotntment, except as followa : • I - • 10 bi A. The City Council may, by ordinance, establish optional pension or defe rred compensation plans for Exempt Employees. Upon establishment of any s uch options! plan(s), an Exempt Employee m11y 1111 hta has thQ option !!! elect to come within the provisions of such plan ; provided, however, that an Exempt Employee m a y not concurrently be a Member of more Lha n one retirement plan t.O which the City is making contributions on hie or her behalf during hie~ employment by the City. In the eve nt that any sai d Exempt Employee nf the City, who is presently a Member of t he Plan, elects to come within the provisions of any other retirement pla1, established by the City Council and funded all or ill part by the City, he shall have the option to become a Vested Member of the Plan (regardless of whether or not he baa co mpleted five (6) yeara of Credited Service) or to withdraw fr om the Plan the amount cslculated under Section 3+10-2 hereof. For each Exempt Employee hjred on or after January 1 1988. membershiJ in the money purchase plan shall be a condition of employment B. 8 .1emp~Empl11)eea efl:he Git,, .. hi, are Meml,ers i,ftl,e PIM eMil, witfttft silt (6l mentl'le frem ~be inelih,tien efe,l!I) eptienel pfflfl(oj by ehe Gil) Getmetl, elect .. heehcr 111 net ~ become n meml,cr e( 11t1, eptierutl plttn(sj . Sai«I eleetieo le e eee me a memher e{ ehe new plan er~ remain o Member eftbe Plan shall be ine,ocal,le. S . ~-~ Ao Employe who tntty become!! !!lb Exempt Employeee by promotion or appointment or otherwise . shall have sixty (60) days from the effective date of their a ppointme nt in said Exempt position it,~ which to elect either to remain in this Plan or to become a member of ene-er any ~ptional plan. The election to beco me a member of another plan shall be irrevocable except as provided jn Section 3-4-18-2 In the even t thot a Me mber elects to convert his or her membership to the Citv or Englewood Nonemergency Employees Money Purchase Pian /Money Purchase Pla n\ a determinable amount shall be trans ferred in accordance with Section 3-4-18-3 G-Q. City Council~ previoWlly de signated the International City Ianagement Association Retirement Corporation Deferred Co mpe nsation Plan r 1CMA-RC Plan") which is established under Section 457 of the Code as an optional plan to wh.ich the City wo uld make co ntributions on behalf of Exempt Emp loyees wb o elect this option. & ~-City Co uncil hM previously est.abb bed l! the mm111r;crt11:I . eupel'Yieor, er eo lliideotial ICM!. RC Moue, Pm ebt18 e Pl.nn lllllIIJlY purcha se plan for managerial. uperv1sory or co nfidenti I employee s effective Janua.ry I. 1988, aa an eptionm l! plan to which the City a nd the emp)o vees shell .nake contributions on behalf of any Exe mpt Employ ., who :!!l!!~~~c!!! -ti,;s rub Plan. E[ectjyg May -2 - • • • • • • 21. 2001 such plan ia renamed the City of Englew ood Nonemergeng Employees Money Purciiase Plan Effective July 30. 2001 a Member of thjs Plan who is: !· An Active Em ployee including an Empi9¥£'l currently receiving benefits under th e City's Long -Te rm Disability Contract or ~-A Ve sted Mi:mber shall have tl-.t· optio n to elect in accordance wjth Section 3-4-18-1 ~er or uot to become a member of th e Cjty of Englewood t-on ememncv Employees Money Purchase Plan C'Monev Purchase Plan"). A Non-E:gempt Employee hired on or aft.er May 21. 2001 shall immediately upon emplo vment elect to participate in either this Plan or the Money Purchase Plan . Said election shall l2i: irrevocable except as provided in Section 3-4-18-2. ~-The City Council of the City of Englewood, Colorad o hereby amende Title 3, Chapter 4. by the addition of a new Section 18 , of the Engle wood Municipal Code 2000 . to read as follow s: Each active Employee wh o is a Member in cl uding any Employee currentlv receiving be nefits under the City'• Long-Term Disability Contract. and each Vested Member shall have the option of converting from membership jn this Plan to me mbenhig_jn the Mon ey Purchase Plan The application to convert mu st be made in writing on or before Ju ly 15 2001 Furthermore the Member must complete the waiver and releas e documents as specified in Section a+ 18·2 Each eligible Member under Section 3:4-3-2B or 3-:1-18-L who wishes to exercise the option of conve rtin g membership to th e Money Purchase Plan mustsjgn a waiver and release wjtlun the timeframea specified by the Boad and in a Corm acceptable to the Board waiving all rights to a defined benefit pension from this Plan and releMing the City and Board from any liabli itv to th e Member and/or his or her Beneficiaries for such a defined benefit penuon or any cl im base d on the co nversion -3 - ~~ent to bis or her reentry in to tbis fun. Each eligible Member und er Sect io n 3-4-3-2B or 3-4 -18-1 who chooses to exercisr_t~ option to ron vert hls or her membership t.o the Money Purchaee PJan shall have a dete r mim1bl e amount trans ferr ed t0 th e Money Purcha~e Plan The amo unt transferred on behalf of eac h such Member js th e act uari al ea uiva)ent prese nt valu e (which shall jnclude an adjustment i( the Mem ber qualifies for Specia l Early Retirement or Regular Eady Retirement as of the date the Member changes stat us for a Member described in Section 3-4-3 -28 and ja July 30 2001 for a Member describ§d in Section 3-4-18-1} as of the date of tr;ansfer of the Member's Accrued Benefit. For purposes of this Section 3-4-18-3. the term "actuarial eaujyalent present value " shall be ba se d on en interest rate assumption of 7.5% and the · · · · • nt transfer of the Member's Accrued Be ne fit sh all be as soo n as practicable after the election date for P Member deecribed in Section 3-4-3-2 B an d Augu st 31 2001 or as soon as practicable thereafter. for a Member de scribed in Se ctio n 3-6-LS-l. Secti pn 3-Safety Clauses The City Council, hereby finds . determines, and declares that this Ordinance is promulgated unde r t he general poli ce power of the City of Englewood . tha t it is prom11lgated for the heal th , safety, and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public co nvenience and welfare . Th e City Council further determines th.at the Ordinance bears a ration al relation to the proper legislati11e obj ec t sought to be obtained. Sect ion 4. Seyerob jlit v If any clause , sente nc e, paragraph, or part of this Ordina nce or the application thereof to any person or circumstana:s shall for any re aso n be adjudged by a court of competent jurisdiction invalid , s uch judgment shall not affect, imp air or in11 alid ate the rema ind er of tlus OrdinnnL-e or its app lication to other persons or circum s tance s. Section 5 lnconsi •te nt Ordinances All other Ordinances or portions thereof inco neistent or co n.Dieting with this Ordinance or any portion hereof are b reby repealed to the e){tent of such lncons1stency or confiict. -4- • • • • • • Sei:tilm.Ji.. Efiect of reyeaJ or modi6c;ation The repeal or modification of any provision of the Code of the City of Englewood by this Ordinance shall not r elease, 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 provision, and each provision ahall be treated and held ae still remaining in force for the purposes of sustaining any and all proper actions , suits, proceedings, and prosecutions for the enforcement of the penalty, forfeiture, or liability , as well as far the purpose of sustaining any judgment, decree, or order which can or may be rendered, entered, or made in such actions, suite, proceedings, or prosecutions. ~-~-The Penalty Provision ofE.M.C. Section 1-4·1 shall a pply to each and every violation of this Ordinance. Introduced, read in full , an d passed on first reading on the 16th d ay of April, 2001. Published ae e Bill for an Ordinance on the 20th day of April, 20 01. Read by title and passed on final readin g on the 7th day of May, 2001. Published by title as Ordinance o. /2.., Series of 2001, on the 11th day of May, 2001. I, Loucriehia A. Ellis , City Clerk of I.he City of Englewood , Colorado, hereby certify that tbe above and foregoing is a tru.e COPY,9}. the Ordinance pas on final reading and published by title as Ordinance No. Jo_, Series of 2001. dCJ -5- .. • • COUNCIL COMMUNICATION Date Agenda Item Subject Bill for an ordina nce making April 16 , 2001 10ai cha nges to the City of Englewood's Non-Emergency Pensi on Plan lni!id teil By I Staff Source D epartment of Finance and Adm ini strative Serv ices Frank Gryglewlcz, D irector COUNCIL GOAL AND PREVIOUS COUNCIL ACTION The Non-Emergency Pe nsion Boa rd discussed an d passed a m otion to recomm en d the City Council adopt changes to th e Plan. RECOMMENDED ACTION The N on-Emergency Pension Aoard reco mm ends City Cou nci l approve this bill for an ordinan ce 111 dki11 g c hanges to the Pl an that allo\ opti o nal pens ion benefits. BACKGROUND INFORMATION Currently, non-emergency employees are required to be enroll ed in a defi ned benefit pension pla n. This benefi t provide _ :: mon thly retirem en t payment based on final average earni ngs and years of service. As the workforce has become increasi ngly m obi le , more and more employees expect !heir pension benefits to be po rtable as well . For this reason, the Non-Emergency Pension Board conside red, and app roved add ing an opti onal defined con tribution pension be ne fit to th e Plan. This benefi t does not guaran te e a fixed pensi on benefit, on ly th e amo unt contributed by th e City and empl oyee is fixed. The benefi t amount at re tiremen t is a func tio n o f time and inves tmen t perform ance. Allo wing employees this option is a ne eded recruitm en t tool . The Non-Emergency Pension Board v o ted to approve the proposed changes to th e Plan . FINANCI AL I MPACT Curren tl y, th e City provides a contribu tion of five p ercen t of an employee 's pay to defined benefi t plan . This amoun t can increase if ac tuarial studies indicate fundin g is inadequa te. If an emp loyee opts fo r the defined contribution pl an , the City would con tribu te seven percent and the emp loyee would contribute three percent (same as Managers, Supervisors, and onfidential Employees Plan). These cont ribution percentages are fixed . LIST OF ATTACHMENTS Proposed bill for an o rd inance