HomeMy WebLinkAbout2000 Ordinance No. 030ORDINANCE NO .~
SERIES OF 2000
BY AUTHORITY
COUNCIL BILL NO . 31
INTRODUCED BY COUNCIL
MEMBER GARRETT
AN ORDINANCE APPROVjNG "AMENDMENT NO . ONE TO CITY OF
ENGLEWOOD POIJCE OFFICERS PENSION PLAN (AS AMENDED AND
RESTATED EFFECTIVE JANUARY I , 1999)".
WHEREAS, the City Council of the City of Englewood, Colorado pa88ed Or.iii: mce
No. 47 , Series of 1999, ad.'J)ting an amended City of Englewood Police;Offi~ J '9naion
Plan document; and • i
WHEREAS, the adoption of this Odinance does not substantially change the
current level of pension benefits for the Police Officers Pension Plan participants; and
WHEREAS, the Ordinance provides the Internal Revenue Service's (IRS) required
changes to the Plan as stated in the IF..., Letter of Determination;
NOW , THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD , COLORADO, .AS FOLLOWS:
~-The City Council of the City of Englewood, Colorado hereby authori2es
the adoption of "Amendment No. One to City of Englewood Police Officers Pemion
Plan (aa Amended and Restated Effective January I , 1999)", attached hereto as
"Exhibit A".
~-The Mayor and the City Clerk are hereby authori2ed to sign ,md attest
said "Amendment No . One to City of Englewood Police Officers Penaion Plan (as
Amended and Restated Effective January I, 1999)", for and in behalf of the City of
Englewood.
Introduced, read in full , and pa88ed on first reading on the 3rd day of April, 2000.
Published as a Bill for an Ordinance on the 7th day of April, 2000.
Read by title and passed on final reading on the 17th day of April, 2000.
-1-
Publiahed by title u Ordinance No . .:i'.2, Serie, of 2000, on the 2llt clay of April, 2000,
A'M'EST:
~{J,;fPe,
~puty City Clerk n
I, Brenda J . Castle, Deputy City Clerk of the City o{ Englewood , Colorado, hure b;•
ce~ that the above and faresoinr uo a true copy of the Ordinance PIINd on fina;
readinf and puhliahed by title u ~ No. ,12. Seriea of 2000.
J{ual~~
Brenda . CutJe
•
:AMENDM!N'l''NG\ E>NE TO ,,, ;; .:,o ) " r
CITY OF ENGLEWOOD POLICE OFFICERS PENstON PIAN 11 I
(AS AMENDED AND RESTATED EFFECTIVE JANUARY I, 1999)
f Ii 1r• JI ,,, ,... 0 r f
t '[1 I I Jfi:1 '"'
Pursuant to the authority of the City of Englewood and the proviaiona of Article•xm,
Section I of the City of Englewood Police Officers Pension Plan (As Amended and Restated
Effective January I, 1999) (the "Plan"), the Phin is hereby amended, effective January I, 1999,
except as otherwise noted, as follows:
I. Article I, Section 2.j. is amended, effective January I, 1997, to read as follows :
"j. Employee : Any person whose Covered Employment with the Employer
commenced prior to April 8, 1978, and who, on and after the Effective Date, is m:eiving
remuneration for Covered Employment or would be receiving such remuneralioa except
for a tluly authorized absence . £ncludcd are 'leased employees.' The tmn 'leased
employee' means any person (other than an employee of the recipient) who punuant to
an agre,-ment between the recipient and any other person ('leasing organization') ,bas
perfonned services for the recipient (or for the recipieni and related persons determined
in accordance with Code Section 414(nX6)) on a substantially full-time basis for a period
of at least one yr ir, and such services are performed under primary direction or control
by the recipient. Contributions or benefits provided a leased employee by the leasing
organization which are attributable to services perfonned for the recipient employer shall
be treated as provided by the recipient employer.
A leased employee shall not be considered an employee of lhe recipient if:
(I) such employee is covered by a money purchase pension plan providing: (a) a
nonintegrated employer contribution rate of at least ten (I 0) percent of compensation, as
defined in Code Section 415(c)(3), but including amounts contributed pursuant to a salary
reduction agreement which are excludable from the em ployee's gross income under Code
Section 125, Code Section 402(eX3), Code Section 402(h)(l)(B) or Code Section 403(b),
(b) immediate participation, and (c) full and immediate vesting; and (2) leased employees
do not constitute more than 20 percent of the recipient's nonhighly compensated
workforce.11
2. Amend Article V, Section 9.m. by revising the paragraphs following (6) to read as
follows:
"Regardless of the form of payment the Retiree chooses, the minimmn
distribution amount will be detennined and made in accordance with Code Section
401(a)(9) and the regulations thereunder, including minimum distribution incidental
death benefit requirement of Proposed Regulation Section 1.401(a)(9)-2. The minimum
distribution is recalculated annually on the basis of the life expectancy of lhe Retiree and
the Retiree's designated beneficiary, if applicable. If elected in writing before the
required beginning date under Code Section 401(a)(9) by the Retiree, and/or the Retiree's
spouse, if applicable, the life expectancy of the Retiree and/or the Retiree's spouse shall
be recalculated annually.
02-60797.0J
A
The Code Section f01(1)(9),dealh dilqibl!ti,on provisions as specified in Article
VII, Section 5 alaail ,apply. 1, \I , I JIIO'I (I 10 I i l I -:0 11 •
. I U I H II'. l ! ,: ll I ,',I) lfthe Relll'ee makes no selection as to orm of payment within 30 days of
termination of employment or expiration of the five-year limit for participation in the
DROP, a hnnp 111DD payment shall be made. 1,
All distributions need to follow the disttibution guidelines from the Fire ~
Police Pension Assoc iation ."
3. Article VII, Section 3, is amended, effective January I, 1989, to read as follows :
"Section 3. Death Benefit after Eljilibility for a Deferred V.ested Pcpsjon : If any
Pllrticipant should die after he is eligible for a Deferred Vested Pension hereunder but
before Pmsion benefits have commenced, his spouse, if living, or his estate, ifno spow;e
or if bis spouse is not living, shall be entitled to receive the Participant's Contribution
Accumulation in a single sum . In lieu of this single sum, a surviving spouse may elect
the monthly death benefit set forth in Section I. of this Article VII to begin on the first
day of the month following the date the Participant would have attained age fifty-five
(55). The Participant's surviving spouse shall be considered the Participant's designated
beneficiary for purposes of Article VII, Section 5.b."
4. Amend Article VII by adding a new Section 5, effective January 1, 1989:
"Section 5. Death Distribution Provisions : The death benefits provided Article
VII, Sections 2 a.'ld 3 arc an inherent part of the Participant's interest. Tnus, the death
benefits provided under such sections are the remaining po rt ion of such interest and
payment of such death benefits in accordance with such sections shall be considered to be
distributed at least as rapidly as under the method of distribution being used prior to the
Participant's death.
a. Djstributjon begioojng before death. If the Participant dies after
distribution of his or her interest has begun, the remaining portion of such interest will
continue to be distributed at least as rapidly as under the method of distribution being
used prior to the Participant's death.
b. Distribution bcgiMing after death . If the Participant dies before
distribution of his or her interest begins, disnibution of the Participant's entire interest
shall be completed by December 31 of the calendar year containing the fifth anniversary
of the Participant's death except to the extent that an election is made to receive
distributions in accordance with (1) or (2) below:
02~.0J
(I) if any porti on of the Participant's interest is payable to a
designated beneficiar), ~ist:-ibutions may be made over the life or over a period
certain not greater than thL ife expectancy of the designated beneficiary
commencing on or b r ,re December 3 I of the calendar year imm'ediately
following the calena~ year in which the Participant died;
•
(2) if the designated beneficiazy is the Participant's surviving spouse,
the date di'trib'!~ons are required to begin in accordance with(!) above shall not
~r."' 11e ~tl~'!han lll.!1a1eP of'(al I>ec1elntier 3 t ottbe cal~ ymr umnedlate1y
1.,~ following ~calendar y,arin 'll!hich ,the P&meipanldied ¥1del>)J;\ffi.5IJIJ?p] 3Ji&t ;
the caltndar year in which the Participant would have attained age 70½.
' I rf: i ,t 1 nt ~b ", 1
If the J>articipant bas no! lllil'1e an election b_y the time of bis or her deatl!, 1)ie 1 , , 1
Participant's designated beneficiazy must elect the method of distnl>ution no later than
the earlier of (i) December 31 of the calendar year in•which distributions would be
required to begin, or (ii) December 31 of the calendar year which contains the fifth
anniversazy of the date of death of the Participant. If the Participant has no designated
bene/;•.-iazy, or if the designated beneficiazy does not elect a method of distribution,
distn oution of the Participant's entire interest must be completed by December 31 of rJ,e
calendar year containing the fifth anniversary of the Participant's death .
c. For pwposes of Section 5.b. above, if the surviving RJ>OUSC dies after the
Participant, but before payments to such spouse begin, the provisions of Section 5.b.,
with the exception of µaragraph (2) above, shall be applied as if the surviving spouse
were the P~rticipant.
d. For purposes of this Section 5, ruiy amount paid to a child of the
Participant will be treated as ifit had been paid to the surviving spouse if the amount
becomes payable to the surviving spouse when the child reaches the age of majority .
e. For the pwposes of this Section 5, distribution of a Participant's interest is
considered to begin on the Participant's required beginning date (or, if Section 5.c. above
is applicable, the date distribution is required to begin to the surviving spouse pursuant to
Section 5.b. above). If distribution in the form of an annuity irrevocably commences to
the Participant before the required beginning date, the date distribution is considered to
begin is the date distribution actually commences ."
5. Article XIV, Section 4.c. is amended, effective Januazy l, 1999, to read as
follows:
"c . If the Employer's determination letter issued by the Commissioner of
Internal Revenue as to such Employer's adoption of this Plan is an initial determination
letter and is to the effect that the Plan and Trust herein set forth or as amended prior to
the receipt of such letter do not meet the requirements of Sections 40l(a) and 501(a) of
the Code, the Employer shall be entitled to withdraw, within one (I) year of the date of
issuance of such letter, all of its contributio ns n ade on and after the Effective Date, as
though it had never adopted this Plan and Trust, provided the application for
determination is made within the time prescribed by law for filing the em ployer's rentm
fo r the taxable year in which the Plan is adopted or such later date as the Secretary of the
T,'CaSury may prescribe."
02-60797.0) • .o
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Ion , '1J f lJ, r1 1l I L
JN ~ ~OF, al¥1 •~~ e0dcn4m.o ~ J¥.i'IWp .of,lhc forqoing • inslnimmt compriJmJ kllendmall No. One 10 City llfBnsJt'MIOd Polleo 0ffimn Pension Plan
••· ti 1:1 rf• '· ... I
(As Amended and Reatated Effective J111uuy I, 1999), the Employer bas caused 111 seal to be
affixed hereto and tf\ese ~1' to be duly executed in ill name aid liebalfbyitl proper oflicm
L ii'• ~' 11 q
tb=to alitborized Ibis_ day of. ____ __, 2000 .
ATTEST : CITY OF ENGLEWOOn;coLORADO ,,
Loucrisbia A. Ellis, City Cleric
By __________ ,, __
Thomas J, Burns, Mayor
'I .., •
II
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Ol-60197.0J
COUNCIL COMMUNICATION
Date Agenda Item Subject
April 3, 2000 BIii for an Ordinance adopting
amendments to the City of
!OaU Englewood Police Officers
Pens ion Plan Document {the
Planl
Initiated By Staff Source
City of Englewood , Administrative Services Frank Gryglewicz, Director
Department
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
The City Council passed Ord inance 47, Series of 1999, adopting an amended City of Englewood
Police Officers Pension Plan document.
RECOMMENDED ACTION
Staff recommends the City Council approve the attached hill for an ordinance .
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
This ordlrance does not substantially change the current level of pension benefits for the Po lice
Officers Pension Plan participants . The ordinance provides the Internal Revenue Service's {IRS)
required changes to the Pian as stated in the IRS Letter of Determ i~atlon.
The Plan document is amended to comply with federal requirements.
FINANCIAL IMPACT
None .
LIST OF ATTACHMENTS
Proposed bill for an ordinance