HomeMy WebLinkAbout1993 Ordinance No. 055••
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ORDINANCE NO .~
SERIES OF 1993
BY AUTHORITY
COUNCIL BILL NO. 6f
INTRODUCED BY C01.,NCIL
MEMBER HABENICHT
AN ORDINANCE AMENDING THE ICMA RETIREMENT PROTOTYPE MONEY
PURCHASE PLAN & TRUST ADOPTION AGREEMENT KNOWN AS CITY OF
ENGLEWOOD POLICE i'ENSION PLAN .
WHEREAS , th e ICMA Retirement Corporation Prototype Money Purchase Plan & Trust
Adoption Agreement whose effective date i1 January 1, 1986;
NOW, THEREFORE , BE rr ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO, AS FOLLOWS:
~-That the Cicy of Englewood hereby adopts the ottached ICMA Prototype Money
Purchase Plan and Trust Adoption Agreement marked as "Exhibit A" and attached hereto
and incorporated by reference.
~-The effective date of said Plan is agreed to be and shall be January 1, 1986.
~-All other provisions of this Agreeme .. t remain unchanged .
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Introduced, read in full, and passed on first readi~~ m the 6th day of December, 1993.
Published as a Bill for an Ordinance on the 9th da y of December, 1993.
Read by title and passed on final reading on the 20th day of December, 1993.
Published by title as Ordinance No.~Series of 1993, on the 23rd day of
December, 1993.
~I 1 J2.ST : 'l,
'//'//( 1.# ~<-Hl
Patricia H. Crow, City Clerk
I, Patricia H. Crow, City Clerk of the Cit)' of Englewood, Colorado, hereby certify that the
above and foregoing is a true copy of the Ordir.•.nce passed on final readir.g and published
by title as Ordinance No.SS,-Series of 1993 .
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ICMA RETIREMENT CORPORATION
PROTOTYPE MONEY PURCHASE PLAN
& TRUST ADOPTION AGREEMENT
#001
Th e E1 .1ploycr hereby establishes a Money Purtllase Plan :111~ Trust 10 be known as City of £ngl e"-0Cld
P olice Pension Plan
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(lhe "'Pl:l ni in lhe fonn of the ICMA Retiremen1 Corpo<alion ProlOlype MOlle)I Pun:hase Plan and Trust This Pion is an
omcn dmen 1 :ind rest:11emen1 of an ex isting defined conai buti on mon ey pun:hase plan. "21 Yes Cl ~o
If yes. ple,se spe<ify lhe nom e of L~e defined contributi on moneypurtha.se plan which Ibis Plan hereby amends and resi:ucs:
City of En glewood Police Pen s ion Plan
I . Employe r : __ c_1_· _t:..y _o_f_E_n--'g:..l_e_w_o_o_d"',_c_o_l_o_r_a_d_o _____________ _ • II. Pr ototype Sponsor.
l'\3me :
Address :
Tel eph one Numbe r:
ICMA Retiremen1 Corporation
777 N. C:ipi10I SltCCL N.E .
Woshington . o.i:. 20002-1240
(202 ) 96 2..:600
Ill . The Effective Dalt orthe Plan shall be the first day of the Plan Year during which the Employer adopts the
Plan, unltsS an altemalt EIT,ctive Date is hereb y specifi~d: Januarv 1 I 198 6
Month/Day
IV. Plan Ye:1r will rr ~.m:
,.
D The ·wel\'C (1 1).:o nsccuLi\'e month period thalcoincidcs wi th the limit3ti on ye;ir. (Sec Section 6.0S ~i)oi
·.he !":in .) .
0 Th', lwclvc (1 2) consecuti ve mon lh period commencing on January l and c::ich anni .,crsa ry
11>:reof. Month/Day
~ormal Retireme nt Af,t shall be age __ S_S ____ (not to exceed age 65). •
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VJ. ELIGIBILITY REQUIREMENTS:
I. The ro11owin1 r,oups or Employees arc eligible 10 ponicip:ue in Ille Pl:u,:
0 All Employee.,
0 All Full-Time Employees
0 Silbried Emp loyees
0 Non-Union Employees
0 M=gement Employees
0 Public S:ifety Emplo yccs
0 Gencr:tl Employees
ID Other (spec iry be low)
All Police Officers hired after Aoril 7, 1978
2. The Employer hereby w:Uvcs or reduces the requirement of l twelve ( 12) monlh Period of Si.:rv ic~ fo r
poruc,potion. Th< r<quired PeriodorSe"·ic e slwlbe N / A . (Wriic :,/A iran Em ploi·cc
is eli gibl e to portic ip:lle upon employmenL )
If th is wJ.ivcr or reduction is ele cted . i1 shllll ~pl~ to :ill Emp loyees wilh in the CO\'Crcd Emp ie~ m~nt
C bss1fico uon.
J. A minimum ilgc re guircment tS hcreb~ spec ified for elig,b1luy to p:iruc ipltc . The minimum :2sc
rcquU"Cmen11s 21 (no ttoacccdJgc:?I). (WnLeN/A 1f no mmimuml &C is dec lared.)
VU . CONTRIB liTION PROVISlu:"S
I. The Emplo ye r sh:ill conaibut, as follows (choose one):
6a Fi.ud Employer Con 1 ributions Witb or Without Mand3tory Partici pant Cnntribucinns .
Th e Emplo)-cr sh:111 con tribute on behalr or cxh P:lnicip:u,t 8 • 0 % of
E:unings or S, _______ forlhe PJ:u, Yc,r (subject to the limitotions or Amc lc VI
of the Pl:in ). EJch P:lnic ipan t is n,quir<d to contribute B • 0 % ol );am ings or
S, _______ forthePlan Ycar:isacondition ofponicipation in the PIJn . (Write "O"
if no cor.aibution is required .) If P:Lrticip3nt contributions Ne required under Lh i1 opt ion.1 :1
Participant shall nOl have the right LO disconti nue or vary the r.>.Le o( such con tr;ouUons .1rtcr
becom ing , Plan Portic ip:u,L
The Emplo yer hereby elec:LS LO .. pick up" the M:ind;uo,y/Rcqu ircd P:lrtic ip;anL Contr ibut io n.
e9 y.,. 0 No
[Note to EmplO)'Cr: Ne ither .1n opinion lcucr iss ued by the lntem:il Re venue Ser vice with rtsf)l!:.:t
to the Prototype Plan . nor a dcterm i~on lct LC r issued to an :xio ptins Employer is :i: ruling b~ the
!nLCm:il Revenue Serv ice thJt PJrtic ip:ll1tconaibutions that:uc picked up by the Employer m: not
includ.J blc in the Partic ipant's gro.s.s income for federal income w purposes . Th e Emp loyer may
seek such 3 ru ling .
Picked up contrib utions arc excl ud3blc fro m the Mcip:int 's gross inc ome under S,::;Liu n
• l>(h)(~) or Ille Jnicnul Revenue Code or 1986 ir th ey meet the requircm enlS or Rev . Rul. 8 J.
35, 1981-1 C.B. 255 . Tho se rcquir emcnis <~(I) thot the Emp loy er mu st spcciry th,t the
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contrtbucons, :ilthou11h desill'W"d., Employee conaibwans. an, beln11 paid by die Emplo
in lieu of co nlributions by tho Employee: one! (2) the Employee mu,t not have ~on
receiving the contributed am01111ts directly inslcad oC having them paid by the EmpW'
Pion.)
0 f'ixed Employer Match or Panlcfpaat Coalributioas.
The Employer shall conlribute on behalf of e.ach Participant _______ 'lc
E:tmings for the Pbn Y= (subject 10 the limiwions of Anicles V and YI of the Plan) for e,
Pion Ye:ir !hot such P:irticipant has contributed _______ % of E:tm ings
S . Under this option, there i.s a single, fixed rate of Employer contn :
tions . but :i Panicip:mt m:i.y dec line lO m.ike the required Pwcip:int contrib ut io ns in ::in y P
Yc:ir, in wh ich CJ.SC no Emplo yer contribution will be m:ldc on the Pllticiparu's bchaJ f in ::
Pion Ye:ir.
O V:i.riable Employer M:i.rch or Participant Contributions.
The Emp loyer sh::ill co naibutc on bch.1lf of c:1ch l½rticip:int :in amount determined :is !O lli.:
(s ubje ct 10 the limiutions of Arti cles V :llld VI of the PL:!n):
0 _______ % of theconlributions mode by the P:irtic ipant for the Pion \',
(not including Plrticip;mt conuibuti ons exceeding _______ % of:_-
ings orS _______ J ,
0 PLt;S _______ % of the contributions made by the P:irticipan t fo r :
Plan Y~ in excess of ~se included in the above parag:raph {but no,··· (!;
P:irticipa.nt conaibutions exceeding in the aggregate -------•• ·
E:tmings or S, ______ ___,
0 Employer contri butions on behalf of a P3rticipant for a Plan Yc.:ir sh3.LI not c,;::
S _______ or _______ % of Earning s, whichever is
D mer, or D less.
2. Each Pnrtic ip:.tnt mJ y mJJce B volunairy (unmatched). after-tax contribution . subjec t to the li miuti on.s
Sec tion 4.0I :ind Articles V and VI or the Plan .
Cll Yes O No
3. Emplo yer contributions :ind P:irti ci p:int con trib utions sh:tll be conuibut.ed to the Trust in accon:1:ln cc ·.,:
the follow ing po yment schedule :
Bi-weekl
VIII. EARNINGS
E:im ings, as defined under Sect ion 2.09 or the Pl:in . shall include :
I.
2.
Ovcnime
Bonuses
0 Yes ?:l No
0 Yes fil No ••
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LIMITATION ON ALLOCATIONS
tf the Employer (i) m:iinlains or ever mainuined :inothcr ~ua1Hied pl3n in which :any Pwcip:int in th is Pbn is (or
was) a p:uticip:1111 or could possibly become 3 panicipanL and/or (ii) main!Jins • we lfare benefit [w,d (os defined
in Section J 19(e) orlhe Code) or:ui individuol medi<::il aa:owi1 (as denned in Section ~IS(!)(~) orlhe Code. wide r
wh ic h :imou nts ~ U'C.:lt.cd as Anru.1,3! Additions wilh respect to an y Panlcipnnt in this Pl:in ). the Emplo yer hereb y
agrees to lim it co ntributions to311 such pbns as provided here in, i. ncccss::&ry, in order to avo id excess conuibutions
(os described in Sections 6.03 Jnd 6.04 of !he Pl:111 ).
I. lf lhe P:lnic ip,n 1 is covered under :11101hcrqu:llified defi nedconuibuti on plan ITIJint:l ined by lhe Emp loyer,
olhcr lhJn a Regio l\JI Prolo1ype Plan , lhe prov isions or Secti on 6.02 (a) through (l)o[lhc Plan will app ly
as if the othe r pl:in were a ~las te r or Protot ype Pbn . unl ess anoth er meth od h.ls bee n indi~t.cd bel ow.
2.
0 Other Meth od (Prc\'idc the me lh od under whi ch the pl.lns "'d i limit 1oul A.nnu:i.l Add.H:un~ to
the .\1:uimum Permissibl e Amount. :ind will properl y reduc e an y C:\C::s.s :un ounLS , in :1 m:ltlnc r
1h31 prec ludes Em plo yer discretio n.)
If r.he Pmicip:int is or ~ ever been J participant in :1 denned benefit plan m3inuined by Lhc Employe r.
:ind irlh e li mit:lti on in Scction6.04orlhe Pl :111 wo uld be exceede d. lhen lhe P:utici p:,m's Projected An nual
Bene ti t under th e de fin ed bene fit plan sh.lU be reduced in xcon:bnce with the terms I.hereof to the c:ucn l
neccssmy LO satis fy such li mitati on. If such plan docs not provide for such re.ducuon, or if th e li mit.:1ti on
is still uceedcd :Uter the reductio n. :innuaJ :idd.itions shall be reduced to the c:ttient neccSS:JJ'V in the mann er
described in Sections6.0 1 through 6.03 . The me thods of .1vok1ingthc li mi~tion descri bed i~ lh is p:u-:i~r.1ph
will no1 apply if the Employer indiCJICS :in olhcr method below.
0 Other Method. (?>01e 10 Emp loyer. Provide below language which will sa1 is ry lhc 1.0 li m11J tio n
of secti on J IS (e) orlhe Code . Such l:,nguage must prtelude Emp lo yer discn:tion. Sec sectio n
l,J IS • I or !he Regu la tions fo r gui dance.)
3. Th~ Ji miL:J.ion year is the fo llowi ng twe lve (12) conscc ~.vc month rcriocJ: _______ _
Mo nlh/D:iy
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X. VESTING PROVISIONS
The Employer herd>y specifies lhc following vesting schedule, subject 10 (I) the minimwn vesting roquire·~
no"'d and (2) the concurrence of the Plan Administr.1101'.
Ye:,nof Specified Minimwn
Service Percent Vesting
~ ~ B,guia:m,a~·•
Zero 0 'll, No minimum
One ~ 'll, No minimum
Two -□,;, No minimum
Three 2.Q.._ % Not less than 20";,
Four 40 'll, Not less than 40':!,
Five bO\'I, NOl less lhan 60 ':!,
Si x .J!.Q_ \'I, Nor less than ao<:1,
s~vcn or mo re lll!L % Must equal 100 %
\ ••These mi nimum vcsti11g requirem cnLS confo rm to th e Code 's thre e-ID scvc n-yc:ir vesting schedu le. If lhc cm pl 1J ~~·.
becomes 100% ves ted by the com ple tion of fi ve yCjJ'"S of service . there is no minimum for ye:irs three .:in d four .)
XI. IJl;VEST~IE)lo'T omoN
0 A ~ci pan t N Y direct his/her investment only 10 or inro an invesuncnt option tluJ. provi des :1 gU.1r.J nt:.
of pri ncipal •
0 A P:mic ipant nuy dirtct hislherinvesunent of not more than ________ % 1n 311 invcsL-n.:::
option which docs not prov ide :in y gu.:u-:u,tee of principal .
~ A P:irtic ipant may direct his/her in vestment. without n:saiction , among vari o us inves tme nt 0pt11Jn •
avail.ib le unde r the TrusL
0 Spcc ify a.n yothc:r invcstment restrictions: _________________ _
XII . BENEFITS UPO N SEPARATION
I. Upo n scp:ir:iti on from service for re.ason other than d~. disability , or n.tuinment of No rmaJ Re tircm~n
Age. the PlrticipantmJy elect to comm ence receiving benefits from the foll owing occoun ts, without rc;::.r .
to :ige:
3)
bi
C)
Emplo)'er Conuibu lio n Accou n1 (Nonforfe iuble lntertst)
P:irti ci p:in1 Conuibuli on Accou n1 (if app li cable )
P:irti cip:in t Poruble Benefi ts Acco un1
Iii! Yes O No
IC Yes O No
~ Yes O 1-o ••
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If "no" 10 any of lhe obove, lhe C31licst age ll which lhc Employer will allow• distribution rrom lhc
Emp loyer Conaibution Account, I.he Porticip,nt l'l>noble BenefiLS Accoun~ and/or lhc P:inic lp,nt
Co,nribution Accounc.. if:ipplicable, sh:ill be :ige _______ (not later tJ,311 Nonn.:11 Reti re •
ment Age).
3. Notwilhs<:1ndin g Subsection (::) 3bo ve, • distribution shall be made punuant 10 Section 10.0-I or I.he Plan.
De ~fin imis Ac counts . Further . lhe Porticip,nt s'lall be entitled 10 request ""'1 his/1,erenti~ Nonrorr eit:1blc
Jnicrcst in hisAier Account be lr.lOsforml 10 31\01.hcr plan , pursWlllt to Section 10.03 of I.he Pion .
Xtll. Loa ns a re permitted under the Pl:in. as provi ded in Arriclt XIV. lD Yes O No
XI V. The Employer hereby :attests that it is a unit or St:ltt or l0e1I 1overnment or :an agency ur instrum ent:.11it y
or un e or more units of scue or local government.
X \'. Th t Pro1otype Spons or hereby aJ:rets 10 inform lhe Employer or any amendments to the Plan made pursuan1
tu ~ction 1:.os or the Pliln or or the disco nt inuance or ab:andonmen1 of the Plan .
X\'l. Th e Employer hereby ap points the Prulc type Sponsor :is the Plan AdministrJIOr pursu.anc to th rt rm s :Jnd
,onditions ohhc JOU RET!RE~IE:'IT CORPORATION PROTOTYPE ,\10NEY Pt;RCHA SE PLAN &
rRL'ST.
The Emplo~e: hereby :igrec s to the pro \·isio ns of the Pl:in & Tru st
XVU . Th e Em pl oye.r hereby .acknowledges it uriderstands th3t failure topropeO"ly nu out th is Adoption Agreement
m:J y result in disqu:ilinc:ation of the Plan .
XVJJI. An .ad o pting Employer may not rely on a notiJiction Jetter issutd by the Na1ional or Districl omce uf 1he
lnttrn:il Re,·mue Service as evidence thal the Ptan i.s qualilitd under section 401 of 1he lntern:il Re ve nue
Code . In order 10 obtain reliance with resp.'!ct to plan qualification. the Employer must apply lo tht
:ipproprfatt key district ofr1Ce for a determin:itio:, letter.
Thi s Adoptio n Agreement ma y be used only in conj unction with l:nsic Plan document number 001.
In Witn ess Whereof. the Empl oyer hereb y cJusc s lh is Agrccmenr to be cxc cut.c:d on thi s --~L .. ~._rtz ___ d:.t y or ri/ov c,,.,.. b<-<-.19.il... ______,
E~IPL0Y ~ Acccp icd : ICMA RETIREMENT CORPORATION
B ~~ ·--------By: _______________ _
IC'.1.1. AE ':'IRE•.!(hT C~RPO A.a.TION CORPORATE MEAOCUARTERS , 777 NOR TMCA PITCA. STREFT .NE , WASHINGTO N. DC 20002 ·•2•0
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Date
INITIATED BY
STAFF SOURCE
COUNCIL COMMUNICATION
Agenda Item
12 e
Subject Changes to New Hire
Pol ice Pension Plan
Department of Financial Sen·ices
Frank Gn·gle\\'ic z , Actin g Direc tor of Financia l Sen·ices
ISSUE/ AC TI O:'\ PROPOSED
Sta ii seeks C o :m.:il ar p rcw,11 of ,1 b ill for an ordinan ce a mending the Police Pension Plan b,·
\\'ah·in_.; th e s" mon th peri,,d of se n ·ice requ ire ment.
PREVIOUS CO iN CIL ACTION
The lC\1.-\ Re!iremen t Corporati on P rototype \l oney Purchase Plan , kn ow "as th e City of
En_.;le\\''1P,i Poh ,e Pensi on Pl an ,_.._ origina llv ad opted January I. 19 6. Originally the plan
ad ,,f,t i,,n ,1sre men t ,ailed fo r a six m onth p eri od of ser l'ice be fo re ne\\' hires were eligibl e
to partic ip at e in the p lan . Th is "·a s not included in th e agreement \\'ith the employees .
:'\e\\' hires s ince 19 6 ha v~ participated immediately in th e p lan . The participating members
in th e p la n haw , ote d to appro,·e these changes to the pla n . 1':o other City pension plan
has a period of se r vi ce required fo r p articipati on at thi s ti me . It is re commend ed a mending
the a,fo p ti c, agree ment to \\'aiw any requiremeni for service to partici pate in th( plan , thi s
"·iJI reconcile prior pra ctice \\'ith th e plan ad opti on agreement.
PROS AN D CO, S OF OPTIONS REVIEWED
Pre,;: A,fo p i,, c,f the chang,• \\'ill bring th e plan in line \\'i th other Citv pens ion plans
sen i.: r e riod , and reconcile p ast practice \\'ith th e plan ad o ption d oc ument.
C 0ns : Fail u re !C' amend th e plan co uld resu lt in a breach of co ntra ct. C o rrecting the records
o f o ff 1Ce rs hi red since 19 6 \\'Ould be e ,tremely difficult and t ime consum in g .
STAFF ANALYSIS
Sta ff rec ommends w aivi n g the se rvice p eriod require ment, w hich will reconci le p as t practice
w ith th l p lan ad option agreement . Thi s will also a d d uni fo rmi ty to a ll Ci ty p ension pla ns
re arding serv ice p eriod requirem en ts .
"INANCIAL IMPACT
:S.:one .
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