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HomeMy WebLinkAbout2008 Resolution No. 075• • • CONTRACT NO. "f -A.oo9 RESO LUTION 10 . _'7fi ER IFS OF cOON A RES LCTIO, AL'T HORI ZING AN AMEND IENT TO THE 1O 1A RET IR H IENT C RP RATION GOV 'R:S'll1E TAL ~!ON EY l'UR II A E PL AN&. TR ST ADOPTION AGRE EMENT FO R THE EN ,LEWO D POLI CE OFF ICE RS 401a MONEY PURCII ASE PL AN (PL AN). WH EREAS. the Engk\\ood Police Benefi t Associati on (E PBA ) Co mrn c, c•uo ti at ions provided for a one per c111 emp loyer co ntribu 1ion in crea se fo r EPHA mcmb crsl:i!,: and WHER EA S. the EPBA me mbers hip has re,1 ues 1cd the em ployee co nt ributio n be increased by one percen t: and WH EREAS. the Pl an mem bership cons ists of EPBA members and po li ce ma nage me nt staff: and WHER EAS. a vo te of the EPBA member ship approved a Co nt rac t for 2009 and 20 10 whi ch pro vi des for rm in crease of 1 °o in co ntri bution s cffcct h·e Janu ary I. 2009; and \VHEREAS . the pa ssag e of thi s Re so luti on amends the existi ng Pl an by provid in g none percent empl nyc r increase (ten perce nt total) and a one percent empl oyee increase (ten perce nt tot al) for Plan memb ers hi p: NO W. THER ErORE . BE IT RES LVE D BY THE CITY CO '(IL OF Tl IE CITY OF ENG LEW OO D. CO LORADO. THAT : Section I. The Cit y Counci l of the Ci1y of Englewood. Co lorad o here by authorizes an amendm ent to th e ··ICMA Retireme nt orpo rntion Govcmmcnta l ~toney Purclm sc Pl an & Tru st Ado pti on Agree ment"' f,: th e Eng lew ood Police Officer s 40 1a Money Purcha se Plan , a copy of wh h.:h is marked as ·Exhibit A" and ntt ac hcd hcrc1 0. Secti on 2. The Direc to r of Fina nce and Adrn :nis 1rativc Services nnd Ci1 y Clerk are hereby authori zed 10 sign and attest sai d Amcndmcl\l 10 the "ICMA Rc1ircmcnt Corp0rn ti on Govcmmcnt al M one y Pui .:-ltasc Plan & Trust Adopti on Agree ment " on behnlf of th e City of Eng lewood . AD OPTE D AND APPR OVED thi s 201h da y of Oc tobe r. 20(1< • • • • • ICMA RETIREMENT CORPORATIO N GOVERNMENTAL MONEY PURCHASE PLAN & TRUST ADOPTION AGREEMENT PLAN NUMBER 10-8370 The Employer hereby esta bl is he s a M oney Purchase Plan and Trus t to be known as CITY CF ENGLEWOO D/PO LI CE (th e "Plan") in the form of th e ICMA RC Governmental Money Purch ase Plan and Tru st. This Plan is an amendme nt and restatement of an exis ting defined contribution money purchase plan . __ x_ Yes No If yes, please specify the name of the defined contribution money purchase plan which this Plan he reby amends and restates : II . Ill. IV. CITY OF ENGLEWOOD POLICE PENSION PLAN Empl oye r: CITY OF ENGLEWOOD The Effective Da '.: .if the Plan shall be the first day of the Plan Year during which the Employer adopts the Plan , unl ess an alternate Effective Dale is hereby sp ec ified: 01/01 /1986 Plan Year will m ean : () The twe lv e (12) co nsecutive mon th period whi c h coincides wth th e li m itation year . (See Section 5.03 (9) of the Plan .) ( X) The twelv e (12) consecutive month period commencing on 01/01 and each anniversary th ereof. Norma l Re tirement Age shall be age~ (not to exceed ag e 65). I! >c H I B I T A V. ELIG IB ILITY REQU IREMENTS : 1. The fo ll owing group or groups of Employee s are eligible to participa le in th e Pl an : All Employees All Full-Tim e Employees Salaried Employees Non-union Employees Management Employees Public Safety Employees General Employees Other (s pecify l;:,iJow) ALL POLICE LFFICERS HIRED AFTER 417/1978 The group specified must correspond to a group of the same designation that is defined in the statutes , ordinances , ruli;s , regulations , personnel manuals or other material in effect in the state or lo cality of the Employer. • 2. The Employer hereby waives or re duces the requirement of e twelve (12) month Period of Service for participation . The required Period of Service shall be NIA (write NIA if an Employee is eligible to participate upon mployment). • If this waiver or reduction is elected , it shall apply to all Employees within the Covered Employment Classification . 3. A minimum age requirement is hereby specified for el igibility lo participate. The minimum age requirement is -1.iQQ__ (not to exceed age 21 . Write NIA if no minimum age is declared .) VI. CONTRIBUTION PROVISIONS 1. The Employer shall contribu te as follows (c hoose one): (X ) Fixed Employer Contributions With Or Without Mandatory Participant Contributions . The Employer shall contribute on behalf of each Participant _1Q2_ % of Earnings or$ ___ for the Plan Year (subject to the limitations of Artic le V of the Plan). A Participan t is required to contribute (subject to the lim itations of Article V of the Plan) (i) --1.Q&._% of Earnings , (ii) $ ___ , or • (iii ) a whole percentage at Earnings, as desi gnated by the Employee in acco rdan ce with g uide lin es and procedures es tablished by the Employer • • () • () fo r the Plan Ye ar as a condition of participation in the Plan . (Write "0" if no co ntribution is required .) If Participant Contributions ar e required under this option , a Pa rtic ipa nt shall not have the right to discontinue or vary the ra te of such co ntributions after becomi ng a Plan Participant. Th e Employer hereby elect s to "pick up" th e Mandatory/Require d Parti cipant Co ntribution . _x_ Yes No [Note to Employer : Neither an IRS advisory let te r nor a determ ination letter issued to an adopting Emp , ·!': is a ruling by the Internal Revenue Service that Participant cu 11trib ~c1 ons that are picked up by the Empl oyer are not includable in the Participant's gross income for federal income tax purposes . The Employer may seek such a ruling . Picked up contributions are excludable from th e Pa :tici pant's gross income under section 414(h)(2) of the Internal Revenue Code of 1986 only if th ey meet th e requirements of Rev . Rui s . 81 -35 and 81 -36 , 1981-1 C.B. 255, and 87-10 , 1987-1 C.B. 136 . Th ose requ irem ents are (1) that the Employer must specify that the contributions , although designated as employee contributions , are being paid by the Employer in li eu of contributions by the employee; (2) the employee must not have the option of receivi ng the contributed amounts directly inst ead of having them paid by the Employer to the plan ; and (3) the required specification of designated employee contribution s must be completed before the period to which su ch contributions relate .] Fixed Employer Match of Participant Contributions . T he Employer shall con tr ibute en behalf of each Participant _% of Earni ngs for th e Plan Year (subject to th e limitations of Article V of the Plan) for each Pla n Year that such Parti ci pant has contributed __ % o' learnings or$ ___ . Under thi s option, th e re is a single, fi xe d ra .. Employer co ntributions , but a Participant may decline to make the required Participant cont ributions in any Plan Year, in which case no Employer contribution wi ll be mad e on the Parti cipant 's beha lf in that Plan Year. Variable Employer Match Of Participant Contributions. The Employer shall contribute on beha lf of ea ch Pa rticipant an amount determ ined as fol lows (s ubject to the limitations of Article V of the Plan ): • __ % of the co ntributions made by the Partic ipant for the Pl an Year (not in clu ding Parti cip ant contributions exceeding __ % of Earn in~s or$___); PLUS __ % of th e co ntributions made by !he Participan t for the Plan Yea r in excess of those in cl ud ed in the above paragraph (bu t not includ ing Participa nt contributions exceeding in th e agg reg ate __ % of Earnings or $ ___ _, Employer Contribution s on behalf of a Participant for a Plan Year sh all not exceed $ ___ or __ % of Earnings , whichever is more or less . 2. Ea c h Participant may make a voluntary (u nmatched}, after-tax contribution , subject to the limitations of Section 4 .05 and Article V of the Plan . _x_ Yes No 3. Employer contributions and Participant contributions shall be contributed to the Trust in accordance with the following payment schedule : Bl -WEEKLY • VII. EARNINGS Earnings , as defined und er Section 2.09 of the Plan , shall include: (a Overtime Yes _..2L No (b} Bonuses Yes _..2L No VIII. LIMITATION ON ALLOCATIONS If the Employer maintains or ever maintained another qualified plan in which any Participant in this Plan is (or was) a participant or c ould possibly become a participant, th e Employer hereby agrees to limit contributions to all such plans as provided herein, if necessary in order to avoid excess contributions (as described in Sections 5.02 of the Plan). • If the Particip ant is co vered under another qualified defined contribution plan maintained by the Empl oyer, the provisions of Section 5.02(a} throug h (f) of th e Plan w ill apply unless another method has been indi cated be low . • • • () Other Method . (Provi·1e the meth od under wh ich th e pl ans will li mit tot a l A nnua l Add itio ns to the Ma ximum Pe rmiss ib le Amoun t, and will properly redu ce any excess amo unts , in a ma nn er tha t precl ude s Employe r d iscretion.) :!. The limitation yea r is the foll owi ng 12-consecutive m o nth pe ri od : __ IX. VESTIN G PROVISION S Th e Employer hereby sp ecifies the following vesting sche dule , subject to (1) the min imum vesting requ irer ,ents as noted and (2) th e co ncurrence of th e Plan Administrator. Years of Service Comol eted Zero One Two Three Four Five Si x Seven Eight Nine Te n Percent Vesting _Q,_QQ_ % 0 .00 % 0 .00 % 20 .00 % 40 .00 % . 60 .00 % 80 .00 % 100.00 % 100.00 % 100.00 % 100.00 % X. Loa ns are pe rmitted unde r th e Pl a n , as provid ed in Arti cle XIII : _x_ Yes No X I. The Empl oyer hereby atte sts that it is a un it of state or lo cal government or an ag e ncy or in strume nta lity of one or more units of state or local government. XII. The Plan Admini strator hereby ag ree s to inform the Employer of any am endm ents to the Plan made pursuant to Section 14 .05 of th e Plan or of the discontinuance or abandonm e nt of th e Plan . XIII. Th e Employer hereby appoi nts the ICMA RC as the Pl an Adm in istrator pursuant to th . terms and cond it ions of th e ICMA RC GOVER NMENTAL MONEY PURCHASE PL AN & TRUST . Th e Employer hereby agrees to the provisions of the Plan and T rust. XIV . The Employer he reby ackn ow ledges it understand s that failure to prop e rl y fill out this Adopt ion Agreement may resu lt in dis qua lifi cat io n of th e Plan . XV . An ad opting Employer may rely on an advi sory lette r issued by th e lnterncil Revenu e Service as ev id e nce that the Plan is qualified und er section 401 of th e Internal Revenue Code . In Witness Whereof, the Employer he reby cau ses th is Agreem en t to be executed on this __ day of _______ , 200_. EMPLOYER ICMA RC By : By : Title: Title : Attes t: Attest: • • • • • COUNCIL COMMUN ICATION Date: Agenda Item: Subject: October 20, 2008 11 C ii Reso luti on Adop ting Amendments 10 th e City oi Engl ewood Poli ce O ffi ce rs Pensi on Plan D oc um ent (Plan ) Initiated By : I Staff Source: Depar tm en t of Finan ce and Adm in is trative Service s Frank G r)'glewicz, Direc tor COUNCIL GOAL AND PREVIOUS COUNC IL ACTION Th e City Council approved Resolu tion 66, Se ri es of 2008 approving th e Coll ec tive Barga inin g Agree ment betwee n th e En glewood Poli c e Bene fit Associa tion an d th e City of Englewood fo r th e years 2009 and 20 I 0. RECOMMENDED ACTI ON Staff recommends City Council approve th e att ached reso lution for an Adopti on Ag ree m ent th at in c rea ses th e City of En glewood and empl oyee contributio n to th e Pl an from nin e to ten perce nt . BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED Th e chang es propos ed inc rease th e City and emp loyees req uired contribution to th e Plan . The in crea se was prop ose d b y th e EPBA and approved by City Counci l (Reso lution 66, Se ri es of 2008). FINANCIAL IMPACT This change to th e Po li ce O h1 ce rs Plan will cos t ap proxim ately $39,000 in 2009 and in c rease as wag es in crease ove r tim e. LIST OF ATTACHMENTS Pro pose d Resoluti on ICMA Ad op ti o n Agr ee m ent