HomeMy WebLinkAbout1999 Ordinance No. 040..
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ORDINANCE NO.diJ...
SERIES OF 1999
BY AUTHORITY
COUNCIL BILL NO . 40
INTRODUCED BY COUNCIL
MEMBER WAGGONER
AN ORDINA.."t\J"CE AMENDING TITLE 3, CHAPTER 6 , OF THE ENGLEWOOD
MUNICIPAL CODE 1985 , PERTAINING TO THE ADOPTION OF AN AMENDED
CITY OF ENGLEWOOD NONEMERGENCY EMPLOYEES RETIREMENT PLAN
AND TRU ST.
WHEREAS , this proposed Ordinance amends Title 3-6, of t he Englewood Municipal
Code 1985 ; allows the amending of the Englewood Nonemergenc y Retirement Plan to
comply with State Statutes, and Federal Guidelines and provides a Deferred
Retirement Option Plan (DROP) benefit for the participants of this Plan; and
WHEREAS , this proposed Ordinance provides plan participants the option of
participating in a Deferred Retirement Option Plan (DROP); and
NOW , THEREFORE , BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD , COLORADO, AS FOLLOWS :
Section 1. The City Council of the City of Englewood, Colorado hereby authorizes
amending Title 3 , Chapter 6, of the Englewood Municipal Code 1985 , adopting an
amended City of Englewood NonEmergency Employees Retirement Plan and Trust,
which shall read as follows:
CHAPTER 6
CITY OF ENGLEWOOD NONEMERGENCY
EMPLOYEES RETIREMENT PLAN AND TRUST
AS Al"\'.IENDED AND RESTATED EFFECTIVE JANUARY 1,-1-99± 1999
3-6 -1: PURPOSE:
Effective as of January 1,-1-99± 1999, the City Council of the City adopted the
amended and restated Plan, as set forth herein, to continue and replace the Plan
previously in effect. The Plan and Retirement Fund are intended to mee t the
requirements of Sections 40l(a) and 501(a) of the Internal Revenue Code of 1986 , as
amended. The Plan previously known as the "City of Englewood Retirement Plan"
shall hereinafter be known as the "City of Englewood Nonemergency Employees
Retirement Plan".
The Plan and the sepal:'ate l:'elatcci Retirement Fund forming a part hereof, were
established and shall be maintained for the exclusive benefit of the eligible
Employees of the City and their Beneficiaries .
No part of the Retirement Fund can ever revert to the City except as hereinafter
provided, or be used for or diverted to purposes other than the exclusive benefit of
the Employees of the City and their Beneficiaries.
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This amendment and resta teme nt of the Plan shall not, in any way, affect the rights
of former Employ ees who participated in said Plan and who either retired or
otherwise terminated their employ ment pri or to January 1, +99+ 1999. The rights, if
any, of such former Employees and of their Beneficiaries and the amounts of their
benefits, if any, shall continue to be governed by the provisions of the Plan as it was
in effect on December 31, --1-900 1998 , or the date , if earlier, of their retirement or
termination of employment, unless specifically provided for otherwise herein.
3-6-2: DEFINITIONS AND CONSTRUCTION:
3-6-2-1: NAME:
The retirement income plan as set forth in this document shall be known as the City
of Englewood Nonemergency Employees Retirement Plan and Trust and is
hereinafter referred to as the "Plan."
3-6-2-2: DEFINITIONS:
Unless the context otherwis e r e quires , the definitions and general provisions
contained in this SUBSection govern the construction of this r estated Plan .
A. "Accrued Benefit" means the benefit determined in acc ordance with Section
3-6-7 hereof.
B. "Accumulated Contributions" means the sum of the Member's contributions to
this Plan, credited with interest thereon at the rate of 3 .5% per annum.
C. "Actuarial (or Actuarially) Equivalent" means equality in value of the aggregate
amounts expected to be received under different forms of pay ment based on
interest rate and mortality assumptions as defined below unless otherwise
specifically provided in the Plan:
1. Interest Rate Assumption for Alternative Periodic Benefits. The interest
rate used for purposes of computing alternative peri odic forms of benefits
shall be 7.5 % effective January 1, 1986 .
2 . Interest Rate Assumption for Single-Sum Payments. Effective for the
calendar y ear beginning on January 1, 1986 , and for each calendar year
following sequentially thereafter, the interest rate used for purposes of
computing single-sum payments shall be the immediate annuity rate
(subj ect to adjustment as required for deferred annuities) used by the
Pension Benefit Guaranty Corporation as of the January 1 coincident
with or preceding the date as of which the amount of the alternative form
of benefit is being determined hereunder.
3 . Mortality Assumption. On and after January 1, 1986 , the mef'tahty
assumptien fer ealeulatien shall he a unisex f'ate that is fifty percent
(80%) male , fifty pet'eent (80%) female , taken frem the 1971 Gt'eup
Annuity Table , Pf'ejeeted hy Seale D te 1978 .
a . EFFECTIVE JULY 1, 1999, THE MORTALITY ASSUMPTION
FOR CALCULATION SHALL BE A UNISEX RATE THAT IS
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FIFTY PERCENT (50 %) MALE , FIFTY PERCENT (50%)
PERCENT FEMALE , TAKEN FROM THE 1983 GROUP
ANNUITY MORTALITY TABLE. PRIOR TO JULY 1, 1999,
SUCH MORTALITY ASSUMPTION SHALL BE A UNISEX RATE
THAT IS FIFTY PERCENT (50%) MALE , FIFTY PERCENT (50%)
FEMALE, TAKEN FROM THE 1971 GROUP ANNUITY
MORTALITY TABLE.
SOLELY FOR PURPOSES OF SECTIO N 3-6-16 , HEREOF , ON
AND AFTER JANUARY 1, 1995, THE MORTALITY
ASSUMPTION FOR CALCULATION SR<\LL BE A UNISEX RATE
THAT rs FIFTY PERCENT (50%) MALE , FIFTY PERCENT (50%)
FEMALE , TAKEN FROM THE 1983 GROUP ANNUITY
MORTALITY TABLE.
D. "Beneficiary" means the person or persons who are so designated by the
Member, in the latest written notice which the Member has filed with the
Retirement Board, to receive any payment to which a Beneficiary may become
entitled under this Plan.
E . "Board" or "Retirement Board" means the Board appointed by the City Council
and charged with the general administration of the Plan as set forth in Section
3-6-11-1 hereof.
F. "City" means the City of Englewood , State of Colorado .
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"City Council" means the City Council of the City.
"Code" OR "INTERNAL REVENUE CODE " means the Internal Revenue Code
of 1986 26 USC (1986), as amended from time to time.
"Compensati on" means the total cash remuneration paid to an Employee for a
calendar year by the City for personal services as reported on the Employee's
income tax withholding statement or statements (Form W-2 , or its subsequent
equivalent), including longevity pay and excluding bonuses , extra pay,
compensation time , overtime , lump-sum payment s in lieu of accrued vacation
time, sick leave , or personal leave , worker's compensation and any contribution
by the City under this Plan , or the like , but including any compensation that
the Employee has electe.d to have deferred under Section 457 and Section 125
of the Internal Revenue Code . Effective January 1, 1989, the amount of a
mMember's compensation for the purposes of the Plan during any Plan year
shall not exceed two hundred thousand dollars ($200 ,000.00) subject to
cost-of-living adjustments in accordance with Code Section 415 (d).
IN ADDITION TO OTHER APPLICABLE LIMITATIONS SET FORTH IN
THE PLAN, AND NOTWITHSTANDING ANY OTHER PROVISION OF THE
PLAN TO THE CONTRARY, FOR PLAN YEARS BEGINNING ON OR
AFTER JANUARY 1, 1996, THE ANNUAL CG.rvIPENSATION OF EACH
"NONELIGIBLE MEMBER" TAKEN INTO ACCOUNT UNDER THE PLAN
SHALL NOT EXCEED THE OMNIBUS BUDGET RECONCILATION ACT '93
ANNUAL COMPENSATION LIMIT. THE OBRA '93 Ai"\JNUAL
COMPENSATION LIMIT IS $150 ,000 , AS ADJUSTED BY THE
COMMISSIONER FOR INCREASES IN THE COST OF LIVING IN
ACCORDANCE WITH CODE SECTION 40l(a) (17) (B). THE COST OF
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LIVING ADJUSTMENT IN EFFECT FOR A CALENDAR YEAR _.\PPLIES TO
ANY PERIOD , NOT EXCEEDING 12 MONTHS, OVER WHICH
COMPENSATION IS DETERMINED (DETERMINATION PERIOD)
BEGINNING IN SUCH CALENDAR YEAR. IF A DETERMINATION PERIOD
CONSISTS OF FEWER THAN 12 MONTHS, THE OBRA '93 fu.'<~l.JAL
COMPENSATION LIMIT WILL BE MULTIPLIED BY A FRACTION, THE
NUMERATOR OF WHICH IS THE NUMBER OF MONTHS IN THE
DETERMINATION PERIOD, AND THE DENOMINATOR OF Y'iHICH IS 12.
A "NONELIGIBLE l\tlEMBER" IS Al"\JY MEMBER WHO FIRST BECA..\1E A
MEMBER IN THE PLAN DURING A PLAJ."l" YEAR BEGINNING ON OR
AFTER JANUARY 1, 1996.
EFFECTIVE JANUARY 1, 1989 , THROUGH DECEMBER 31, 1996, IN
DETERMINING THE COMPENSATION OF A MEMBER FOR Pl.~POSES
OF THIS LIMITATION, THE RULES OF CODE SECTION 41-! (q) (6),
SHALL APPLY , EXCEPT IN APPLYING SUCH RULES, THE TERM
'FAMILY' SHALL INCLUDE ONLY THE SPOUSE OF THE iVIE~IBER AND
ANY LINEAL DESCENDANTS OF THE MEMBER WHO HA \TE :\'OT
ATTAINED AGE 19 BEFORE THE CLOSE OF THE YEAR , EFFECTIVE
JANUARY 1, 1989 THROUGH DECEMBER 31 , 1996 , IF , AS A RESULT OF
THE APPLICATION OF SUCH RULES THE ADJUSTED ANi'<T_-\.L
COMPENSATION LIMITATION IS EXCEEDED THEN THE LI:.IITATION
SHALL BE PRORATED AMONG THE AFFECTED INDIVIDE-\.LS IN
PROPORTION TO EACH SUCH INDIVIDUAL'S COMPENSATION AS
DETERMINED UNDER THIS SUBSECTION 3-6-2-2 (I), OF THE
ENGLEWOOD MUNICIPAL CODE PRIOR TO THE APPLICATION OF THIS
LIMITATION.
J . "Credited Service" means the period of Service rendered by an Employee as a
Member for which credit is allowed.
K. "Disability" means a physical or mental condition which entitles the Member
to receive a disability income under the long-term disability insurance contract
maintained by the City.
L. "Effective Date of this Plan" means January 1, 1970. This amended and
restated Plan is effective as of January 1, 1991.
M. "Employee" means any person employed by the City on a permanent, full-time
basis as defined in the City Personnel Policy and Procedures. For the purposes
of this retirement plan, police officers , paid firefighters and elected officials
shall not be considered to be Employees.
Effective January 1, 1987, included as employees are leased employees within
the meaning of Code Section 414(n)(2) except that if such leased employees
constitute less than twenty percent (20%) of the nonhighly compensated
workforce within the meaning of Code Section 414(n)(l)(C)(ii), then the term
"Employee" will not include those leased employees covered by a plan
described in Code Section 414(n)(5) unless otherwise provided by the terms of
this Plan.
N. "Exempt Employee" means an Employee having one of the following titles as
defined by City Personnel Policies and Procedures: City Manager, -~sistant
City Manager, any Department Head, Municipal Court Judge , City Attorney,
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and Assistant City Attorney. Effective January 1, 1988, "Exempt Employee"
shall also include any managerial, supervisory or confidential employee as
defined by City Personnel Policies and Procedures.
"Final Average Monthly Compensation" means 1/36 of a Member's total
Compensation during the thirty-six (36 ) consecutive full calendar months
(determined without the inclusion of any Break in Service) within the last one
hundred twenty (120) completed full calendar months of employment with the
City which yield the highest average Compensation. In the event the Member
was employed for fewer than thirty-six (36) consecutive full calendar months,
such average monthly compensation shall be based on his Compensation for
the thirty-SL"< (36) successive full months during his last one hundred twenty
(120) full calendar months of employment with the City that would yield the
highest average, or his full period of such employment, if less than thirty-SL"<
(36) months.
"Insurance Company" means any insurance company or companies appointed
by the City Council for long-term disability coverage , or as provided in
SUBSection 3-6-12-3 hereof.
"Leave of Absence" means any absence authorized by the Employer under such
Employer's standard personnel practices , provided that all persons under
similar circumstances must be treated alike in t he granting of such Leave of
Absence , and provided further that the Employee returns or retires within the
period specified in the authorized Leave of Absence .
"Member" means any person included in the membership of this Plan as
provided in Section 3-6 -3 hereof. Effective January 1, 1987, excluded as
members are leased employees within the meaning of Code Section 414(n)(2).
S. "Normal Retirement Age" means age sixty-five (65).
T. "Normal Retirement Date" means the first day of the calendar month
coincident with or next following the sixty-fifth (65th) birthday of the Member.
U. "Plan" means City of Englewood Nonemergency Employees Retirement Plan
AND TRUST, as amended from time to time .
V . "Plan Administrator" means the Retirement Board of the City.
W. "Plan Year" means the calendar year starting January 1 and ending
December 31.
X. "Previous Plan" means the City of Englewood Retirement Plan (including any
predecessor plan(s) thereto) in force and effect for the period prior to January 1,
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to the Previous Plan as of a certain date or for a certain period shall be
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deemed a reference to the Previous Plan as then in effect.
"Retired Member" means a former Member whose employment terminated by
reason ofretirement or Disability and who is receiving or is entitled to receive,
or whose Beneficiary or estate is entitled to receive , benefits under this Plan.
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z. "Retirement Benefit" or "Pension" means any Retirement Benefit provided for
in Section 3-6-7 hereof.
AA . "Retirement Fund" or "Fund" means the "City of Englewood Nonemergency
Employees Retirement Fund," maintained by the Retirement Board or in
accordance with the terms of the Trust Agreement, amended from time to time ,
which constitutes a part ofthis Plan.
BB . "Service" means a person's period or periods of employment as an Employee
used in determining eligibility or the amount of benefits as described in Section
3-6-4 hereof.
CC . "Trustee" means any qualified and acting Trustee appointed by the City
Council as Named Fiduciary for the investment and management of Plan
assets , as provided in Section 3-6-12 hereof.
DD. "Vested Member" means a former Member whose Credited Service has
terminated by reason other than retirement or Disability and who is entitled
to receive , or whose Beneficiary or estate is entitled to receive , benefits under
this Plan . A Vested Member s hall become a Retired Member upon the actual
commencement of benefit payments.
3-6-2-3: CONSTRUCTION:
The masculine gender , where appearing in the Plan, shall be deemed to include the
feminine gender and words used in the singular shall include the plural unless the
context clearly indicates to the contrary . Words such as "hereof," "herein," and
"hereunder," shall refer to the entire Plan, not to any particular provision or section.
The Plan and Trust shall each form a part of the other by reference and terms shall
be used therein interchangeably .
3-6-3: MEMBERSHIP:
3-6-3-1: EMPLOYEES ON JANUARY 1, 1970:
Every person who was an Employ ee of the City on January 1, 1970 could become a
Member in the Plan on such date by properly filing with the Retirement Board, on or
before such date , the form of membership agreement furnished for that purpose. Any
such person who did not file the form of membership agreement on or before such
date may thereafter file such membership agreement and become a Member on the
first day of any subsequent month.
3-6-3-2 : EMPLOYEES HIRED AFTER JANUARY 1, 1970:
For each Employee hired after January 1, 1970, membership in the Plan shall be a
condition of employment and each Employee shall become a Member on the date of
employment. Such Employee shall be required to complete the form of membership
agreement at the time of employment, election or appointment, except as follows :
A. The City Council may, by ordinance, establish optional pension or deferred
compensation plans for Exempt Employees. Upon establishment of any such
optional plan(s), an Exempt Employee may at his option elect to come within
the provisions of such plan; provided, however, that an Exempt Employee may
not concurrently be a Member of more than one retirement plan to which the
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City is making contributions on his behalf during his employment by the City.
In the event that any said Exempt Employee of the City, who is presently a
Member of the Plan, elects to come within the provisions of any other
retirement plan established by the City Council and funded all or in part by
the City, he shall have the option to become a Vested Member of the Plan
(regardless of whether or not he has completed five (5) years of Credited
Service) or to withdraw from the Plan the amount calculated under Section
3-6-10-2 hereof.
Exempt Employees of the City who are Members of the Plan shall, within six
(6 ) months from the institution of any optional plan(s) by the City Council, elect
whether or not to become a member of any optional plan(s). Said election to
become a member of the new plan or to remain a Member of the Plan shall be
irrevocable.
Those Employees who may become Exempt Employees by promotion or
appointment or otherwise, shall have sixty (60) days from the effective date of
their appointment in said Exempt position in which to elect either to remain in
or to become a member of one or any other optional plan. The election to
become a member of another plan shall be irrevocable .
City Council has previously designated the International City Management
Association Retirement Corporation Deferred Compensation Plan ("ICMA-RC
Plan") which is established under Section 457 of the Internal Revenue Code as
an optional plan to which the City would make contributions on behalf of
Exempt Employees who elect this option .
City Council has established the managerial, supervisory or confidential
IC?vL.\-RC Money Purchase Plan for managerial supervisory or confidential
employees effective January 1, 1988 as an optional plan to which the City
shall make contributions on behalf of any Exempt Employee who elects this
Plan.
3-6-3-3: TERMINATION:
Membership of any Member shall terminate if and when he shall cease to be an
Employee for any reason, except as provided in SUBSection 3-6-4-3 hereof.
3-6-4: CREDITED SERVICE:
3-6-4-1: CREDITED SERVICE:
Credited service shall be used to determine a Member's Accrued Benefit and
eligibility for benefits under the Plan. A Member's Credited Service is the elapsed
time period from his date of employment with the City, as an Employee, to his date
of termination of such employment, except as provided below .
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3-6-4-2: LIMITATION ON CREDITED SERVICE:
A. No period of Credited Service shall be deemed to be increased or extended by
overtime .
B. Credited Service shall not include any period ohime during which the Member
is on an approved Leave of Absence or interruption of Service as provided in
SUBSection 3-6-4-3 hereof.
C. Periods of employment with the City prior to the date the Employee became a
Member shall not be included as Credited Service unless such an Employee (1)
elected to become a Member of the Plan on January 1, 1970 pursuant to
SUBSection 3-6-3-1 hereof, or (2) is covered under the provisions of Section
SUBSection 3-6-4-3 hereof.
D. Credited Service shall not include any period on the basis of which a
Retirement Benefit is payable under any other defined benefit retirement or
pension plan to which the City made contributions , other t han benefits
payable under the Federal Social Security Act or the Volunteer Firefighters'
Pension Fund.
E. Credited Service shall not include any period of time for which the City
contributes on behalf of an Exempt Employee to the ICMA-RC Plan or any
other optional deferred compensation plan in lieu of this Plan, as provided in
SUBSection 3-6 -3-2 hereof.
F. Credited Service shall not be extended beyond a Member's date of termination
for lump-sum payments in lieu of accrued vacation, sick leave or personal
leave.
G. CREDITED SERVICE SHALL NOT INCLUDE ANY PERIOD OF TIME THAT
A MEMBER CONTINUES WORKING FOR THE CITY AFTER
COMMENCEMENT OF THE MEMBER'S PARTICIPATION IN THE
DEFERRED RETIREMENT OPTION PLAN PURSUA.t"\JT TO SECTION
3-6-7-8.
3-6-4-3: BREAK IN SERVICE:
A Member shall incur a Break in Service if his Service as an Employee terminates
and he does not return to Service as an employee within twelve (12 ) months of the
date such Service terminated.
The Retirement Board shall have the power to determine when a Break in Service
shall have occurred, and such determination shall be made in a nondiscriminatory
manner .
The following shall not be considered a Break in Service :
A. A temporary lay-off because of an illness or for purposes of economy,
suspension, or dismissal, followed by death, or reinstatement, reemployment
or reappointment within one (1) year.
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B. A formal Leave of Absence , duly approved by the City :Vlanager for a specific
period, followed by death or by reinstatement, reemployment or reappointment
within thirty (30) days after termination of the Leave of Absence.
C. Any Employee or any Member who is on a Leave of Absence on account of
entering into the military service of the United States (including service in the
United States Merchant Marine in time of war) shall, in the absence of
reasonable justification for additional delay, return to the Service of the City
within ninety (90) days after the time when a discharge from such military
service was first available to such Employee. In the event that a Member or
employee does not return to the Service of the City within the time specified
above, such Leave of Absence shall be considered a Break in Service.
NOTWITHSTANDING ANY PROVISION OF THE PL\ .. '! TO THE
CONTRARY, CONTRIBUTIONS , BENEFITS Ai"\iu SERVICE CREDIT WITH
RESPECT TO QUALIFIED MILITARY SERVICE \V1LL BE PROV1DED IN
ACCORDANCE WITH CODE SECTION 414 (u).
D . The period during any Leave of Absence or interruption of Service shall not
however, be included in Credited Service.
EFFECTrVE AS OF AUGUST 5, 1993, A LEA \lE OF .-IBSEN CE PURSUANT
TO THE FA1\1ILY AND MEDICAL LEAVE ACT OF 1993 , SHALL NOT BE
CONSIDERED A BREAK IN SERVICE; HOWE\l ER, THE EMPLOr"'"EE WILL
NOT RECEIVE Al"\JY SERVICE CREDIT DURING Sl.TH AN .. AJ3SENCE.
After January 1, 1987, if any former Member (vested or nonvested) returns to
Service as an Employee within five (5) years after his date of termination, or if
a former Vested Member returns to Service as an Employee after such five (5)
years but without receiving any single-sum payment hereunder, then
applicable prior Credited Service shall be restored. Otherwise such prior
Credited Service shall be permanently lost, subject to the further provisions of
this SUBSection 3-6-4-3. If any such rehired Member, who had returned to
Service as an Employee within five (5) years after the date of termination, had
received a single-sum payment in lieu of Retirement Benefits, an actuarial
reduction shall be made in his Retirement Benefits under SUBSection 3-6-16-1
hereof unless he repays the Fund within twenty four (2-1 ) months of.rehire ,
such single-sum amount, with interest at the rate dete:cmined under
SUBSection 3-6-2-2C2 hereof (interest rate assumption for single-sum
payments) from the date the Member received the payment to the date of
repayment.
Members of the Plan as of January 1, 1987, who were previously covered by
the Plan but, due to a prior termination of employment, received such a
single-sum payment, and were then reemployed by the City regardless of the
time that expired between their termination date and reemployment date ,
shall have until July 1, 1989 , in order to elect to repay such single-sum
amount and thereby avoid such actuarial reduction . Tne amount to be repaid
shall be calculated as set forth and must be repaid by July 1, 1989 .
Any former nonvested Employee who returns to Service as an Employee more
than five (5) years after his date of termination and who is a Member of the
Plan as of January 1, 1987, shall have until September 30 , 1987 to make
written application to the Retirement Board to have hi.s prior Credited Service,
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if any, restored. The Retirement Board shall review such application and shall
determine on a nondiscriminatory basis, whether such prior Credited Service
shall be restored, and shall inform the Member of its determination by
December 31, 1987 .
Any Member of the Plan who was an Employee on January 1, 1970 and who
did not elect to become a Member of the Plan on January 1, 1970 pursuant to
SUBSection 3-6-3-1 hereof will, as of January 1, 1987, receive credit for all
service prior to the date he actually became a Member of the Plan. Such a
Member may elect in writing, prior to July 1, 1988 , to pay a single sum
amount determined on the basis of the amount of accumulated contributions
that said Member would have accumulated in the Plan as of July 1, 1988 had
he elected to become a Member of the Plan on January 1, 1970 and made the
required contributions each year on the basis of compensation he received each
year. If the Member elects not to pay the single sum amount, his retirement
benefit determined under SUBSection 3-6 -7-1 hereof shall be reduced by the
actuarial equivalent of the single sum payment due as of July 1, 1988.
3-6-4-4: EFFECT OF OTHER PLANS:
Credited Service shall not include any period on the basis of which a Retirement
Benefit is payable under any other defined benefit retirement or pension plan to
which the City made contributions , other than benefits payable under the Federal
Social Security Act or the Volunteer Firefighters' Pension Fund. Credited Service
shall not include any period of time for which the City contributes on behalf of an
Exempt Employee to the ICMA-RC Plan or any other optional deferred compensation
plan in lieu of this Plan, as provided in SUBSection 3-6-3-2 hereof.
3-6-4-5: MISCELLANEOUS:
No Period of Credited Service shall be deemed to be increased by overtime. A year of
Credited Service shall be given for each three hundred SL'{ty five (365) day period,
beginning with the first day of employment, which elapses while the employee is
entitled to Service Credit under the above provisions of SUBSection 3-6 --! hereof.
3-6-5: CONTRIBUTIONS :
3-6-5-1 : MEMBER CONTRIBUTIONS:
Effective January 1, 1976, no Member will be required or permitted to contribute to
the Plan.
3-6-5-2 : CITY CONTRIBUTIONS:
The City will, from time to time and at least annually, make contributions to the
Trust Fund to the extent necessary to finance the benefits provided by the Plan on a
sound actuarial basis. The City expects to continue s uch contributions to the Plan,
but assumes no responsibility to do so and reserves the right to suspend or to reduce
contributions at any time.
3-6-5-3: APPLICATION OF FORFEITURES:
Any amount forfeited because of the termination of employment of a Member prior to
his having acquired a fully vested right to Retirement Benefits, because of the death
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of any member, or for any other reason, shall not be applied to increase the benefits
which would otherwise be payable to any other Member . The amounts so forfeited
shall be applied as soon as possible to reduce the contributions required to be made
by the City .
3-6-6: RETIREMENT DATES:
3-6-6-1: NORMAL RETIREMENT:
All permanent, full-time Employees of the City shall become one hundred percent
(100%) vested upon attainment of their Normal Retirement Age and may retire at
any time thereafter.
The effective date of retirement under the provisions above shall be the first day of
the first month following the month in which such Employee actually retires from the
employment of the City.
3-6-6-2: EARLY RETIREMENT:
A. Regular Early Retirement: A Member or Vested Member who has attained the
age of fifty-five (55 ) years and has completed at least five (5) years of Credited
Service may elect to retire under Regular Early Retirement and have benefit
payments commence as of the first day of any calendar month, which shall not
be less than thirty (30) nor more than ninety (90) days after the filing of
written notification with the Retirement Board.
B . Special Early Retirement: A Member shall be eligible for Special Early
Retirement as of the first day of any calendar month if his employment
terminates after he has attained the age of fifty-five (55) and the sum of his
age plus his Credited Service at termination equals eighty-eight (88) or more.
Such a Member may elect Special Early Retirement upon the filing of written
notification with the Retirement Board not less than thirty (30) nor more than
ninety (90) days prior to the date benefit payments are to commence.
3-6-6-3: DELAYED RETIREMENT:
Every Member upon reaching his sixty-fifth (65th) birthday shall be fully vested in
the benefits earned prior to such date and shall be eligible to retire under the Plan.
However, any Member eligible for normal retirement may elect to delay his
retirement date as permitted by the City Personnel Policies and Procedures. His
delayed retirement date shall be the first day of the month, coincident with or next
following the date of his actual retirement. As a condition precedent to continuance
in employment beyond the Normal Retirement Date, the Member shall file with the
Retirement Board the written designation of a Beneficiary, whether or not the
Member elects an optional benefit in accordance with Section 3-6-8 hereof.
3-6-6-4: DISABILITY RETIREMENT:
Any Member who is disabled pursuant to SUBSection 3-6-2-2(K) hereof shall qualify
for Disability retirement as provided herein . Payment of a Disability Retirement
Benefit shall commence on the first day of the month next following his Normal
Retirement Date. The last payment shall be made as of the first day of the month in
which the death of the Retired Member occurs or his Disability ceases, whichever
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first occurs. If Disability ceases on or after the Members Normal Retirement Date
and he does not return to full-time employment with the City, his Disability
Retirement Benefit shall be continued in the same manner as if his Disability had
continued.
If the Retired Member's Disability ceases prior to his Normal Retirement Date and
he is not reemployed by the City, and if he had met the requirements for an early or
deferred vested Retirement Benefit on the date of his retirement from Disability, he
shall be entitled to receive, commencing on the first day of the month next following
his Normal Retirement Date, a Retirement Benefit equal to the early or deferred
vested Retirement Benefit to which he would have been entitled, as of the date of his
disablement. Such Retirement Benefit to be calculated shall consider the Credited
Service he could have received during the period of his Disability. If the Member
requests the commencement of his early or deferred vested Retirement Benefit as of
the first day of the month next following his fifty fifth (55th) birthday , or as of the
first day of any subsequent month which precedes his Normal Retirement Date, his
Retirement Benefit shall commence as of the beginning of the month so requested,
but the amount thereof shall be reduced in accordance with SUBSection 3 -6-7-2
hereof based on the number of years by which the starting date of the Retirement
Benefit payments precede the Member's Normal Retirement Date .
If Disability ceases before a Retired Member attains his Normal Retirement Date
and the Member is reemployed by the City, the Retirement Benefit payable upon his
subsequent retirement shall be determined in accordance with the provisions of
SUBSection 3-6-7-1 hereof including Credited Service for the period that he was
disabled.
Notwithstanding any other provision of this Section, no Member shall qualify for a
Disability Retirement Benefit if the Board determines that his Disability results
from an addiction to narcotics or hallucinogenic drugs, an injury suffered while
engaged in a felonious or criminal act or enterprise , or service in the Armed Forces of
the United States which entitles the Member to a veteran's disability pension.
Disability under the Plan shall be considered total and permanent if it is
determined by the Board that the Member is eligible and receiving disability benefits
from the long-term disability insurance contract maintained by the City.
Disability shall be considered to have ended if, prior to his Normal Retirement Date ,
the Member is no longer eligible for benefits from the long-term disability insurance
contract maintained by the City.
3-6-6-5: REQUIRED DISTRIBUTION OF RETIREMENT BENEFITS:
Notwithstanding any other provision of this Plan, distribution of Benefits under this
Plan shall commence not later than April 1 of the calendar year following the later of
the calendar year in which the Member attains age seventy and one-half (70 1/2) or
the calendar year in which the Member retires.
3-6-7: RETIREMENT BENEFITS:
3-6-7-1: NOR1\!1AL OR DELAYED RETIREME~T:
Upon retirement at or after his Normal Retirement Date , each Retired Member shall
receive a monthly Retirement Benefit equal to one and one half percent (1 1/2%) of
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the Member's Final Average Monthly Compensation multiplied by the total number
of years (including fractional years) of the Members Credited Service.
3-6-7-2: EARLY RETIREMENT:
A. Regular Early Retirement. A Member or Vested Member, eligible for Regular
Early Retirement and retiring prior to his normal Retirement Date, shall be
entitled to a reduced Retirement Benefit which shall be his Accrued Benefit on
his Regular Early Retirement date, reduced by one fourth of one percent (.25%)
for each month by which the payment commences prior to the first of the month
following his Normal Retirement Date.
B. Special Early Retirement. A Member who meets the requirements for Special
Early Retirement shall receive a monthly amount computed as for a Normal
Retirement Benefit considering his Credited Service to the date of his actual
Retirement, payable without reduction for early commencement.
3-6-7-3: DISABILITY RETIREMENT:
A Member who meets the requirements for a Disability Retirement Benefit as a
result of receiving payments from the City's long -term disability insurance contract
shall receive a monthly amount commencing on the first day of the month next
following his Normal Retirement Date and computed as for a normal retirement
under SUBSection 3-6-7-1 hereof, considering his Final Average Monthly
Compensation at the date of his retirement from Disability and Credited Service for
the period he received long-term disability benefits from the City's long-term
disability insurance contract.
3-6-7-4: DELAYED RETIREMENT:
A Member retiring subsequent to his Normal Retirement Date shall receive the
monthly retirement benefit computed under SUBSection 3-6-7-1 hereof, considering
his/her final average monthly compensation at the date of his/her actual retirement
and the credited service he/she accumulated to the date of his/her actual retirement.
3-6-7-5: NORi\tlAL FORM OF PAYMENT:
Unless optional benefits have been elected pursuant to Section 3-6-8 hereof, the
basic monthly retirement benefit, computed as set forth above, shall be a ten (10)
year certain and life benefit. Such benefit shall be in equal monthly payments
commencing on the first day of the month next following the retirement date, and
continuing at monthly intervals for a period of one hundred nineteen (119) additional
months and for the retired member's lifetime thereafter. The last benefit payment
shall be made on the first day of the month of the retired member's death, unless
payments have been made for fewer than one hundred twenty (120) months, in
which event payments shall be continued to the named beneficiary, ceasing when an
aggregate of one hundred twenty (120) monthly payments have been made to the
retired member and his/her beneficiary. If the retired member is married at the time
benefits are to commence , the spousal consent requirements of SUBSection 3-6 -8-2
hereof must be met before payments under this Section commence.
In the event that no beneficiary is living at the death of such retired member, the
actuarial equivalent value of the monthly installments for the balance of the term
certain will be computed and paid in one sum to the estate of the retired member. If
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at the death of the last surviving beneficiary following the death of the retired
member, monthly installments have not yet been paid for the term certain, the
actuarial equivalent value of the installments for the balance of the term certain will
be computed and paid in one sum to the estate of the last surviving beneficiary.
As provided by SUBSection 3-6-16-2 hereof, retirement benefits may be suspended
for a retired member during a period of employment subsequent to his/her actual
retirement date during which he/she is rehired and receiving compensation as an
employee of the City. Monthly payments shall commence and be determined
pursuant to such SUBSection 3-6 -16-2 hereof.
3 -6-7-6: ACCRUED CREDITS AND VESTED BENEFITS UNDER THE PREVIOUS
PLAN PRESERVED:
The restatement of the previous plan by this plan shall not operate to exclude,
diminish, limit or restrict the payment or continuation of payment of benefits accrued
as of December 31 , -±900 1998. The amount of such previous plan benefits, if any, in
the course of payment by the trustee under said previous plan, to any person on
December 31, -±900 1998, shall be continued by the trustee under the trust
agreement forming a part of this plan, in the same manner, undiminished,
preserved, and fully vested under this plan.
The eligibility for, and amount of, any benefit of any kind, payable commencing after
December 31, 1986 under this plan to or for any person who was a member of the
previous plan and who became a member of this restated plan as of January 1,
1987, shall be determined under the provisions of this plan.
3-6 -7-7: INCREASED BENEFITS FOR RETIRED MEwIBERS AND
BENEFICIARIES:
Effective July 1, 1993 , all members and beneficiaries whose payments commenced
before January 1, 1993 , shall receive a five percent (5 %) increase in their pension
payments subject to future adjustment as determined by the Board.
Effective January 1, 1996, all members and beneficiaries whose payments
commenced before July 1, 1995, shall receive a three percent (3%) increase in their
pension payments subject to future adjustment as determined by the Board.
3-6-7 -8: DEFERRED RETIREMENT OPTION PLAN (DROP):
A. EFFECTIVE DATE. NOTWITHSTANDING SUBSECTION 3-6-2-2(L),
HEREOF, THE PROVISIONS CONTAINED IN THIS SUBSECTION 3-6-7-8,
HEREOF SHALL BE EFFECTIVE ON OCTOBER 1, 1999.
B. TITLE. THE PROGRAIVI PROVIDED IN THIS SUBSECTION 3 -6-7-8,
HEREOF, MAY BE REFERRED TO AS THE "DROP."
C. APPLICABILITY. THE PROVISIONS OF THIS SECTION ARE
APPLICABLE WITH RESPECT TO THOSE OTHERWISE ELIGIBLE
MEMBERS OF THE PLAN WHOSE ELECTION TO PARTICIPATE IN THE
DROP OCCURS ON OR AFTER THE EFFECTIVE DATE CONTAINED IN
THIS SUBSECTION 3-6-7-8(A), HEREOF. AN "ELIGIBLE lVIEMBER" IS ANY
MEMBER WHO HAS ATTAINED THE NORMAL RETIREMENT DATE IN
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E.
ACCORDANCE WITH SUBSECTION 3-6-2-2 (T), HEREOF OR THE SPECIAL
EARLY RETIREMENT DATE IN ACCORDAl'-J"CE WITH SUBSECTION
3-6 -6-2B. A "PARTICIPATING DROP MEMBER" IS _-\NY ELIGIBLE
MEMBER WHO HAS ELECTED TO PARTICIP_.\TE IN THE DROP AS
PROVIDED BY THIS SUBSECTION 3-6-7-8. HEREOF.
PURPOSE. THE PURPOSE OF THE DROP IS TO ALLOW AN ELIGIBLE
MEMBER TO ELECT, IN LIEU OF IMMEDLA..TE TERl\illNATION OF
EMPLOYMENT AND RECEIPT OF RETIREMEi'n' BENEFIT OR PENSION,
TO CONTINUE EMPLOYMENT FOR A SPECIFIED PERIOD OF TIME Al'-J"D
TO HA VE THE ELIGIBLE MEMBER'S RETIRKv!ENT BENEFIT OR
PENSION PAID INTO THE DROP ACCOUNT u~!IL THE END OF SUCH
SPECIFIED PERIOD OF THE PARTICIPATING DROP MEMBER'S
PARTICIPATION, AT WHICH TIME EMPLOY.YIBTI IS TO CEASE. Al'-J"
ELIGIBLE MEMBER MUST CHOOSE THE RETIRE?YIENT BENEFIT
PROVIDED IN SUBSECTION 3-6 -7-1 , HEREOF , OR ONE OF THE
RETIREMENT OPTIONS PROVIDED IN SECTION 3 -6-8, HEREOF, AT THE
SAME TIME THE ELIGIBLE MEMBER ELECTS TO PARTICIPATE IN THE
DROP.
PARTICIPATION. AN ELIGIBLE MEMBER ;vL-\Y PARTICIPATE IN THE
DROP ONLY ONCE.
AN ELIGIBLE MEMBER WHO HAS REACHED ~OR.vlAL RETIREMENT
AGE MUST ELECT TO PARTICIPATE IN THE DROP WITHIN NINETY (90)
DAYS AFTER THE LATER OF ATTAINl\!IENT OF NORl\ilAL RETIREMENT
AGE OR THE EFFECTIVE DATE OF THE DROP .
AN ELIGIBLE MEMBER MAY ELECT TO P_.\RTICIPATE IN THE DROP
UPON FILING OF WRITTEN NOTIFICATION \\lTH THE RETIREMENT
BOARD NOT LESS THAN SIXTY (60) NOR MORE TH..·\N NINETY (90) DAYS
PRIOR TO THE DATE OF INTENDED PARTICIPATION.
F . TERM. THE DURATION OF A PARTICIPATI);"G DROP MEMBER'S
PARTICIPATION IN THE DROP SHALL NOT EXCEED A TOTAL OF
THREE (3) YEARS . AS A CONDITION PRECEDENT TO PARTICIPATION
IN THE DROP , THE PARTICIPATING DROP :\IB::VIBER SHALL EXECUTE
AN IRREVOCABLE AGREEMENT WITH THE CIIT IN THE FORM
PRESCRIBED BY THE RETIREMENT BOARD , \Y"HICH SHALL, AMONG
OTHER ITEMS, CLEARLY AND UNEQUIVOC.\LLY STATE THAT THE
PARTICIPATING DROP MEMBER MUST RETIRE )i0 LATER THAN THE
DATE PRESCRIBED IN THE AGREEMENT vvIDCH :YIAY NOT EXCEED
THE THIRD ANNIVERSARY OF THE PARTICIPATING DROP MEMBER'S
PARTICIPATION IN THE DROP, AND THE P_.\RTICIPATING DROP
MEMBER SHALL ALSO ACKNOWLEDGE TH...\T ~O DISBURSEMENT OF
ANY DROP FUNDS CAN OCCUR ABSENT THE RETIREMENT OR DEATH
OF THE PARTICIPATING DROP MEMBER.
G. INTERRUPTION OF PARTICIPATION. IF THE P_.\RTICIPATING DROP
MEMBER'S PARTICIPATION IN THE DROP IS I>i!ERRUPTED BY
MILITARY SERVICE , THERE SHALL BE NO I>i!ERRUPTION OF
MEMBERSHIP IN THE DROP . SUCH A PARTICIPATING DROP MEMBER'S
PENSION SHALL CONTINUE TO BE PAID I)l!O THE PARTICIPATING
DROP MEMBER' DROP ACCOUNT WHILE IN THE MILITARY SERVICE
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FOR THE BALANCE OF THE THREE -YEAR Mfu'\IM1__.:V1 TER..\1 ELECTED
BY THE DROP MEMBER UNDER SUBSECTION F. • H. EFFECT ON PARTICIPATION IN THE PLAN. UPON COlVD.1E);CEMENT
OF THE ELIGIBLE MEMBER'S PARTICIPATION IN THE DROP .. .\
MEMBER'S CREDITED SERVICE , FINAL A VER...\GE ::V10NTHL Y
COMPENSATION AND ACCRUED BENEFIT SHALL BE FROZL);. A
PARTICIPATING DROP MEMBER SHALL NOT SHARE IN _..\...."\,-y
SUBSEQUENT FORMULA IMPROVEMENTS . HOWE"VER, . .\
PARTICIPATING DROP MEMBER SHALL SHARE IN . ..\...."\J-Y AD EOC
INCREASE GRANTED TO RETIRED MEMBERS .
I. CONTRIBUTION. UPON COMMENCEMENT OF THE ELIGIBE
MEMBER'S PARTICIPATION IN THE DROP , THE RETIRE:..IE); ~BENEFIT
OR PENSION PROVIDED IN SECTION 3-6 -7 AND SECTIO!'\ 3-B-8
HEREOF , SHALL BE PAID INTO THE PARTICIPATI::\G DROP ),fEMBER'S
DROP ACCOUNT . IN NO CASE SHALL THE CITY CO~TRIBl"'TION ,
PROVIDED FOR IN SUBSECTION 3-6 -5-2 HEREOF , BE USED 70 FUND
THE DROP. ACCORDINGLY , .AJ.\110UNTS TRANSFERRED OR P . .\ID TO A
PARTICIPATING MEMBER'S DROP ACCOUNT SH...\LL )JOT CO :\"STITUTE
ANNUAL ADDITIONS UNDER CODE SECTION 415 .
J . ADMINISTRATION OF DROP ASSETS. PARTICIPATI:\"G DROP ~MEERS
MAY DIRECT THEIR DROP MONEY TO ANY OF THE I:\fVESDIB)JT
OPTIONS APPROVED BY THE BOARD FOR THE DROP . THEP.3 SHALL
BE NO GUARANTEED RATE OF INVESTMENT RETl.!t)I O:\" D?.OP • DEPOSITS. ANY LOSSES, CHARGES OR EXPENSES I)l"Cl.!tRED BY THE
PARTICIPATING DROP MEMBER IN SUCH MEMBER'S DROP .~CCOUNT
BY VIRTUE OF THE INVESTMENT OPTIONS SELECTED BY L'IB
PARTICIPATING DROP MEMBER , SHALL NOT BE ::VLillE CP 3Y THE
CITY OR THE PLAN, BUT ALL OF S.AJ.\11E SHALL BE BOR).""E B: THE
PARTICIPATING DROP MEMBER. TRANSFERS BET\VEE:\" I).~.~STMENT
OPTIONS SHALL BE IN ACCORDAL"\JCE WITH THE Rl"LES _..\...."\,---=:)
REGULATIONS OF THE DROP. A DROP ACCOUNT SH...\LL BE
ESTABLISHED FOR EACH PARTICIPATING DROP :..1E:...IBER. S U CH
DROP ACCOUNT SHALL BE ADJUSTED , NO LESS FREQCE).-:-LY THAN
ANNUALLY FOR CONTRIBUTIONS, DISTRIBUTIOl\S _..\_"\,u );.r:..T
INVESTMENT EARNINGS AND LOSSES.
K. REGULATIONS. THE RETIREMENT BOARD IS AUTHORIZED TO ADOPT
RULES AND REGULATIONS GOVERNING THE DROP.
L. FEES. IF THE DROP ACCOUNT SHALL BE SUBJECT TO . ..\....'.--: FEES OR
CHARGES OF ANY KIND , SUCH FEES OR CHARGES SH...\LL B~
CHARGED TO THE PARTICIPATING DROP MEMBER'S ACCO l.~1.
M. FORM OF PAYMENT. FOR PURPOSES OF THIS S1J BSECTIO:\" 3-6-7-8
HEREOF, A "RETIREE " IS A PARTICIPATING DROP :...1E::V1BER wrIO
TERMINATES EMPLOYMENT OR REACHES THE THREE-YE.....\...."1. LIMIT
FOR PARTICIPATION IN THE DROP . A RETIREE lY1l."ST CHOOSE ONE
OF THE FOLLOWING FORMS OF PAYMENT FROM THE I).uI'iIDUAL'S • DROP ACCOUNT:
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1. DEFERRED PAYMENT. DISTRIBUTION FROM A DROP ACCOUNT
MAY BE DEFERRED UNTIL A DATE DESIGNATED BY THE
RETIREE . WHEN DESIGNATING THE DATE UPON WHICH
DISTRIBUTIONS SHALL COMMENCE , THE RETIREE MUST ALSO
DESIGNATE THE FORM OF PAYMENT FROM ONE OF THE
AVAILABLE OPTIONS . REGARDLESS OF THE DATE CHOSEN BY
THE RETIREE, ALL DISTRIBUTIONS MUST COl\INIENCE NO LATER
THAN THE YEAR IN WHICH THE RETIREE ATTAINS THE AGE OF
70 112;
2. LUMP SUM. A ONE-TIME DISTRIBUTION OF THE RETIREE'S
ENTIRE ACCOUNT BALANCE, INCLUDING A DIRECT ROLLOVER
UNDER SUBSECTION 3-6-17-3 ;
3. PERIODIC PAYMENTS DESIGNATING AN AMOUNT .
DISTRIBUTION OF THE RETIREE'S ACCOUNT BALANCE BY
MONTHLY PAYMENTS IN AN AMOUNT DESIGNATED BY THE
RETIREE , UNTIL THE ENTIRE BALANCE OF THE ACCOUNT IS
DISTRIBUTED;
4. PERIODIC PAYMENTS FOR A DESIGNATED PERIOD OF TIME.
MONTHLY PAYMENTS TO THE RETIREE FOR . .\ PERIOD
DESIGNATED BY THE RETIREE . THE PAYMEl\"T WILL BE
CALCULATED SUCH THAT UPON THE OCCURRENCE OF THE
LAST MONTHLY PAYMENT , THE ENTIRE BAL.'-L".JCE OF THE
ACCOUNT WILL BE DISTRIBUTED;
5. INITIAL MINIMUM REQUIRED DISTRIBUTION. ACCOUNT
BALANCE IS DISTRIBUTED AS PERIODIC PAY?vIENTS THAT ARE
CALCULATED BASED ON THE RETIREE'S LIFE EXPECTAN CY (AND
THE LIFE EXPECTANCY OF THE RETIREE 'S DESIGNATED
BENEFICIARY, IF APPLICABLE); OR
6. COMBINATION OF LUMP SUM AND PERIODIC PAYlYIENTS . AN
INITIAL LUMP SUNI PAYMENT OF AN AlVIOU:N'T DESIGNATED BY
THE RETIREE , FOLLOWED BY A DESIGNATION OF A NUMBER OF
SUBSEQUENT MONTHLY PAYMENTS OR AN A..vlOUNT PAYABLE
ON A MONTHLY BASIS . .
REGARDLESS OF THE FORM OF PAYMENT THE RETIREE
CHOOSES , THE MINIMU M DISTRIBUTION AlvlOUNT WILL BE
DETERMINED AND ?YIADE IN ACCORDANCE WITH CODE SECTION
401 (a) (9), AND THE REGULATIONS THEREUNlJER, INCLUDING
MINIMUM DISTRIBUTION INCIDENTAL DEATH BENEFIT
REQUIREMENT OF PROPOSED INTERNAL RKVENUE CODE
REGULATION SECTION 1.401 (a) (9 )-2 , (PUBLISHED IN THE
FEDERAL REGISTER ON JULY 27 , 1987). THE ?vIINIMUM
DISTRIBUTION IS RECALCULATED ANNUALLY ON THE BASIS OF
THE LIFE EXPECTANCY OF THE RETIREE Al'ID 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 , A.i.'-l'TI/OR THE
RETIREE 'S SPOUSE , IF APPLICABLE , THE LIFE EXPECTANCY OF
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THE RETIREE AND/OR THE RETIREE'S SPOU SE SHALL BE
RECALCULATED ANNUALLY.
IF THE RETIREE MAKES NO SELECTION AS TO FORM OF
PAYMENT WITHIN THIRTY (30) DAYS OF TERMINATION OF
EMPLOYMENT OR EXPIRATION OF THE THREE-YEAR LIMIT FOR
PARTICIPATION IN THE DROP , A LUlVIP SL').-1 PAYMENT SHALL BE
MADE.
N. PARTICIPATING DROP MEMBER'S DEATH; SPOlJSAL BENEFICIARY. IF
THE PARTICIPATING DROP MEMBER DIES DURI)JG THE PERIOD OF
THE PARTICIPATING DROP MEMBER'S PARTICIPATION IN THE DROP
AND THE PARTICIPATING DROP MEMBER'S DESIGNATED
BENEFICIARY IS THE PARTICIPATING DROP ME:YIBER'S SURVIVING
SPOUSE TO WHOM THE PARTICIPATING DROP 1\-IEMBER WAS
LEGALLY MARRIED AT THE TIME OF THE PARTICIPATING DROP
MEMBER'S DEATH, THE PARTICIPATING DROP :\!EMBER'S
DESIGNATED BENEFICIARY SHALL RECEIVE , AT THE BENEFICIARY'S
OPTION, A LUMP SUM PAYMENT FROM THE DECEASED
PARTICIPATING DROP MEMBER'S INDIVIDF . ..\L DROP ACCOUNT
BALANCE OR EQUAL MONTHLY INSTALLME:>JT P . .\YMENTS FROM THE
DECEASED PARTICIPATING DROP MEMBER'S I~uI\!lDUAL DROP
ACCOUNT OVER A PERIOD NOT TO EXCEED THE SPOUSE'S LIFE OR
LIFE EXPECTANCY. IF NO SELECTION IS MADE BY THE DESIGNATED
BENEFICIARY WITHIN SIXTY (60) DAYS OF DEATH OF THE
PARTICIPATING DROP MEMBER, A LillvIP SuNI P . .\YMENT SHALL BE
MADE.
0 . PARTICIPATING DROP MEMBER'S DEATH ; NON-SPOUSAL
BENEFICIARY. A MARRIED PARTICIPATING DROP MEMBER MAY
DESIGNATE SOMEONE OTHER THAN HIS SPOUSE TO BE A PRIMARY
BENEFICIARY, PROVIDED SPOUSAL CONSENT AS PRESCRIBED IN
SUBSECTION 3-6-8 -7, HEREOF, IS OBTAINED . IF THE PARTICIPATING
DROP MEMBER DIES DURING THE PERIOD OF THE PARTICIPATING
DROP MEMBER'S PARTICIPATION IN THE DROP , A1'JD THE
PARTICIPATING DROP MEMBER'S DESIGNATED BENEFICIARY IS
SOMEONE OTHER THAN THE PARTICIPATING DROP MEMBER'S
SURVIVING SPOUSE TO WHOM THE PARTICIPATING DROP MEMBER
WAS LEGALLY MARRIED AT THE TIME OF THE PARTICIPATING DROP
MEl\!IBER'S DEATH , THE DESIGNATED BENEFICL.\RY SHALL RECEIVE A
LIBvIP SUM PAYMENT EQUAL TO THE DECE..\SED PARTICIPATING
DROP MEMBER'S INDIVIDUAL DROP ACCOUNT BALANCE.
P. PARTICIPATING DROP MEMBER'S DEATH; NO DESIGNATED
BENEFICIARY. IF THE PARTICIPATING DROP :NIE::VIBER DIES DURING
THE PERIOD OF THE PARTICIPATING DROP ME~IBER'S
PARTICIPATION IN THE DROP , AND THE DESIG)."ATED BENEFICIARY
HAS NOT SURVIVED THE PARTICIPATING DROP :\!EMBER, THE
PARTICIPATING DROP MEMBER'S ESTATE SHALL RECEIVE A LUMP
SUlVI PAYMENT EQUAL TO THE DECEASED PARTICIPATING DROP
MEMBER'S INDIVIDUAL DROP ACCOUNT BALfu"\;"CE.
Q. NO IMPACT OF DROP PARTICIPATION ON OTHER DEATH AND
DISABILITY BENEFITS. DROP PARTICIPATION SHALL NOT AFFECT
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S.
Ai"\IY OTHER DEATH OR DISABILITY BENEFIT PROVIDED TO A
ME:lvIBER UNDER FEDERAL LAW , STATE LAW , CITY ORDINAl'\JCE , OR
ANY RIGHTS OR BENEFITS UNDER Al"\IY APPLICABLE COLLECTI'lE
BARGAINING AGREEMENT.
RETROACTIVITY (BACK-DROP). FOR PURPOSES OF THIS SUBSECTION
3-6-7-8(R), "RETROACTIVE PARTICIPATION DATE" MEAi'\JS JAi'\JUARY 1,
1999 , OR SUCH LATER DATE AS WOULD HA VE BEEN ON OR AFTER Ai'\J
ELIGIBLE MEMBER'S RETIREMENT DATE , BUT PRIOR TO THE
EFFECTIVE DATE OF THE DROP, AND WHICH WAS SELECTED BY THE
ELIGIBLE MEMBER TO COMMENCE PARTICIPATION IN THE DROP .
NOTWITHSTANDING SUBSECTION 3-6-7-8(A), HEREOF Ai'\J ELIGIBLE
MEMBER WHO WOULD HA VE QUALIFIED FOR THE DROP ON HIS
RETROACTIVE PARTICIPATION DATE, HAD THE DROP BEEN IN
EFFECT ON THAT DATE , MAY ELECT TO HAVE HIS INDIVIDUAL DROP
ACCOUNT CREDITED WITH A ONE-TIME LUMP SUM PAYVIE~. SUCH
ONE-TIME LUMP SUM PAYMENT SHALL EQ UAL THE SlJ?vl OF THE
:NLJNIBER OF PENSION PAYMENTS WHICH WOULD HAVE BEEN
PAYABLE PRIOR TO THE EFFECTIVE DATE OF THE DROP, HAD THEY
COi\tllvIENCED ON THE MEMBER'S RETROACTIVE PARTICIP_.\TION
DATE, CREDITED WITH INTEREST USING THE ACTUARIAL I~l'EREST
RATE ASSUMPTION PROVIDED IN SUBSECTION 3-6-2-Z(C), HEREOF.
SUCH LUMP SUM PAYMENT SHALL BE MADE AS SOON A.S
ADMINISTRATIVELY FEASIBLE AFTERTHE EFFECTIVE DATE OF THE
DROP . IF A PARTICIPATING DROP MEMBER ELECTS TO HAVE THE
ONE-TIME LUMP SUM PAYMENT DEPOSITED INTO HIS DROP
ACCOUNT, THE THREE-YEAR PERIOD SPECIFIED IN Sl;"BSECTION 3-6 -
7-8F, HEREOF , WILL BEGIN TO RUN, NOT ON THE DATE OF SUCH
ELECTION, BUT ON THE PARTICIPATING DROP MEMBER'S
RETROACTIVE PARTICIPATION DATE.
FIDUCIARY LIABILITY: THE DROP IS INTENDED TO FOLLOW
SECTION 404 (c), OF THE EMPLOYEE RETIREMENT INCONIE SECURITY
ACT OF 1974 ERISr\ AND THE APPLICABLE DEPARTMENT OF LABOR
REGULATIONS. FIDUCIARIES OF THE PLAN MAY BE RELIEVED OF
LIABILITY FOR ANY LOSSES WHICH ARE THE DIRECT A.ND
NECESSARY RESULT OF INVESTMENT INSTRUCTIONS GIVEN BY A
PARTICIPANT.
3-6-8 : OPTIONAL FORMS OF BENEFITS :
· 3-6-8-1: GENERAL:
Subject to such uniform rules and regulations as the retirement board may prescribe
and the restrictions contained in this Section 3-6 -8 hereof, a member or vested
member may, in lieu of the basic retirement benefits provided in Section 3-6-7 hereof,
elect one of the following forms of retirement benefits which shall be the actuarial
equivalent of the benefit to which he would otherwise be entitled. The member or
vested member must take any electi on of an optional benefit in writing, and such
election must be filed with the retirement board at least thirty (30) days prior to the
due date of the first payment of retirement benefits under the plan. The election of
an option may be changed at any time prior to thirty (3 0) days preceding the due
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date of the first payment of retirement benefits under the plan. However, an optional
form of payment may not be elected unless the value of the payments expected to be
paid to the member exceeds fifty percent (50%) of the value of the total benefits to be
paid under such optional form.
3-6-8-2: QUALIFIED JOINT AND SURVIVOR BENEFIT OPTION:
The Qualified Joint and Survivor Benefit option provides an adjusted monthly
Retirement Benefit payment during the Retired Member's life ; and the spouse (to
whom the Member was married when his Retirement Benefit commenced), if
surviving at the Members death, shall receive thereafter for life a monthly
Retirement Benefit of fifty percent (50%) of the adjusted monthly amount paid to the
Member.
Within a reasonable time before the Member's Retirement Benefit commencement
date hereunder, the Retirement Board shall provide to the Member a written
explanation of the terms and conditions of the Qualified Joint and Fifty Percent
(50%) Survivor Benefit set forth herein and the effect of refusing it. If on or after
January 1, 1987, the Employee wishes to elect a form of payment other than the
Qualified Joint and Survivor Benefit (described in this Section), such election will not
become effective unless his spouse (if he has a spouse who can be located) consents
in writing to such election, acknowledges the effect of such election and has such
consent and acknowledgment witnessed by a Plan representative or a notary public.
A properly completed benefit election form (furnished by the Retirement Board) must
be returned to the Retirement Board within ninety (90) days prior to the Member's
benefit commencement date. If the Member files another election form after the
earlier form and prior to his benefit commencement date, the earlier form shall be
annulled.
3-6-8-3: ONE HUNDRED PERCENT JOINT AND SURVIVOR BENEFIT OPTION:
The one hundred percent (100%) Joint and Survivor Benefit option provides adjusted
monthly Retirement Benefit payments during the Retired Member's life, and upon
his death after retirement, continue payments in the same amount to a designated
Beneficiary during the life of such Beneficiary.
3-6-8-4: FIFTY PERCENT JOINT AND SURVIVOR BENEFIT OPTION:
The fifty percent (50%) Joint and Survivor Benefit option provides reduced monthly
Retirement Benefit payments during the Retired Member's life , and, upon his death
after retirement, continues payment in an amount equal to one-half (1/2) of the
amount of such reduced payments to a designated Beneficiary during the life of such
Beneficiary. Payment shall be continued to the designated Beneficiary for life.
3-6-8-5: FIVE YEAR CERTAIN AND LIFE BENEFIT OPTION:
The five (5) Year Certain and Life Benefit option provides adjusted monthly
Retirement Benefit payments during the Retired Member's life , and upon his death
after retirement within the sixty (60) month period, payments shall be continued to
the designated Beneficiary for the balance of the sixty (60) month period.
3-6-8-6: LIFETIME BENEFIT OPTION:
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The Lifetime Be n efit option provides increased monthly Retirement Benefit
payments during the Retired Member's life wit h no continuations of pay ment after
his death.
3-6-8-7 : BENEFICIARY:
The Member or Vested Member must designate his Beneficiary in writing. If on or
after January 1, 1987, a married Member or Vested Member wishes to designate
someone other than his spouse to be a primary Beneficiary (or wishes to continue ,
after January 1, 1987, such a designation made p r ior to January 1, 1987), such
designation will not become (or continue t o be) effective unless his s pouse (if his
spouse can be located) consents in writing to such designation (or form of benefits)
which may not be changed without spousal consent (or the consent of the spouse
expressly permits designations by the Member or Vested Mem b er without any
requirement of further consent by the spouse), acknowledges the effect of such
designation and has such consent and acknowledgment witnessed by a Plan
r epresentative or a notary public. Such designation shall be made in writing upon a
form provided by the Retirement Board and shall be filed wi th t he Retirement
Board. The last s uch designation filed with the Retirement Board shall control.
3-6 -8 -8 : MINIMUM MONTHLY PAYMENTS :
If the monthly b e nefit to which any Member, Vested Member or Beneficiary shall
become entitled under the Plan shall be less than one hundred dollars ($100.00),
the Retirement Board shall have the right to direct that the Actuarial Equivalent of
such benefit shall be paid in a lump sum or in installments at such intervals as will
result in each payment amounting to at least one hundred dollars ($100.00).
3-6 -9: DEATH BENEFITS:
3-6 -9 -1: DEATH OF AN ACTIVE MEMBER WITH FIVE (5) OR MORE YEARS OF
SERVICE :
If an active Member dies after completing five (5) or more years of service, the
surviving spouse shall receive fifty percent (50 %) of the Y!ember's accrued benefit for
one hundred twenty (120) months certain and life thereafter. However, if the spou se
is more than five (5) years younger than the Member, the mont hly benefits will be
reduced by one and one-half percent (1.5%) for each year that their difference in age
exceeds five (5) years . If the Member is not survived by a spouse , his designated
beneficiary shall receive fifty percent (50 %) of the Member's monthly accrued benefit
for one hundred twenty (120) months certain. If the Member is not survived by a
designated Beneficiary, the one hundred twenty (120) monthly payments shall be
computed and paid in a single sum to the Member's estate . The pay ment to the
surviving spouse or designated Beneficiary will commence on the first day of t he
month following the date of the Member's death, or if later, the date t h e Member
would have attained a ge fifty-five (55 ). If a Member's death occurs prior to his
fifty-fifth (55th) birthday, the Retirement Board may elect, with the consent of the
Member's spouse , designated Beneficiary or estate to pay the spouse , Beneficiary or
estate a single sum pay ment at the time of the Member's death, equal to the
Actuarial Equivalent of the payment due when the Member would have attained age
fifty-five (55) .
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3-6 -9-2: DEATH OF A VESTED OR DISABLED MEMBER PRIOR TO
COMMENCEMENT OF PAYMENTS:
In the event a Vested Member or a disabled Member dies prior to the
commencement of payments from the Plan, the surviving spouse shall receive fifty
percent (50 %) of the Member's Accrued Benefit for one hundred twenty (120) months
certain and life thereafter. However, if the spouse is more than five (5) years younger
than the Member, the monthly benefit will be reduced by one and one-half percent
(1.5%) for each year that their difference in age exceeds five (5 ) years. If the Member
is not survived by a spouse, his designated Beneficiary shall receive fifty percent
(50%) of the Member's monthly Accrued Benefit for one hundred twenty (120) months
certain. If the Member is not survived by a designated Beneficiary, the one hundred
twenty (120) monthly payments shall be computed and paid in a single sum to the
Member's estate. The payment to the surviving spouse or designated Beneficiary will
commence on the first day of the month following the date of the Member's death, or
if later, the date the Member would have attained fifty-five (55 ). If a Member's death
occurs prior to his fifty-fifth (55th) birthday , the Retirement B oard may elect, with
the consent of the Member's spouse, designated Beneficiary or estate to pay the
spouse , Beneficiary or estate a single sum payment at the time of the Member's
death, equal to the Actuarial Equivalent of the payment due when the Member
would have attained age fifty-five (55 ).
3-6-9-3: DEATH OF AN ACTIVE MEMBER BETWEEN NOR.:vL'\L Ai°""TI
DELAYED RETIREMENT DATES:
In the event a Member continues in City employment after his normal retirement
date and dies before actually retiring, then he shall be deemed to have retired on the
first day of the calendar month in which he dies. If an optional form or payment has
been elected, the death benefit, if any , shall be determined by the option elected. If
no optional form of payment has been elected, the Member's monthly Accrued Benefit
shall be paid to his surviving spouse for one hundred twenty (120) months certain. If
the Member is not survived by a spouse , his designated Beneficiary shall receive one
hundred percent (100 %) of the Member's Accrued Benefit for one hundred twenty
(120) months certain. If the Member is not survived by a designated Beneficiary, the
one hundred twenty (120) monthly payments shall be computed and paid in a single
sum to the Member's estate. Death benefit payments shall commence on the first
day of the month following the Member's death.
3-6-9-4: DEATH OF A RETIRED MEMBER OR BENEFICIARY:
In the event a Retired Member or Beneficiary dies while receiving Retirement Benefit
payments, the death benefit, if any, will be determined by the form of Retirement
Benefit being paid. In the event that no designated Beneficiary is living at the death
of such Retired Member and term certain payments are due, the Actuarial
Equivalent value of the monthly installments for the balance of the term certain will
be computed and paid in one sum to the estate of the Retired Member. If at the
death of the last surviving Beneficiary following the death of the Retired Member,
monthly installments have not yet been paid for the full period of the term certain,
the Actuarial Equivalent value of the installments for the balance of the term certain
will be computed and paid in one sum to the estate of the last surviving Beneficiary.
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3-6-9-5 : SUPPLEMENTAL DEATH BENEFIT FOR MEMBERS HIRED PRIOR
TO JANUARY 1, 1976:
In addition to the death benefit provided in SUBSections 1, 2 and 3, OF THIS
SECTION 9 , fie.reef, a lump sum supplemental benefit shall be payable to the
designated Beneficiary of any active Member, Vested Member or disabled Member
who dies prior to the commencement of retirement benefit payment s from the Plan.
The supplemental death benefit shall be equal to the amount of a ccumulated
contributions as of his date of death plus two percent (2%) of the compensation
received by him subsequent to December 31 , 1975 and prior to January 1, 1983 . If
such Member is not survived by a designated Beneficiary, the lump sum payment
shall be made to his estate.
3-6-9-6: UNIFORM SIMULTANEOUS DEATH ACT:
The provisions of any State law providing for the distribution of estates under t he
Uniform Simultaneous Death Act, when applicable, shall govern the distribution of
death benefits payable under this Plan.
3-6-10: SEVERANCE BENEFITS:
3-6-10-1: COVERAGE:
Benefits shall be paid to a Member under this Section 3-6-10 hereof if his
employment terminates for reasons other than retirement, Disability or death .
3-6-10-2: LESS THAJ."\J FIVE YEARS OF CREDITED SERVICE:
Should a member's employment with the City terminate for reasons other than
retirement, Disability or death prior to his Normal Retirement Date and prior to his
completion of five (5 ) years of Credited Service, the only benefit to which he shall be
entitled under this Plan shall be:
A. The amount of his Accumulated Contributions , if any, plus
B. Two percent (2%) of the Compensation received by the Member subsequent to
December 31, 1975 and prior to January 1, 1983 .
3-6-10-3: FIVE OR MORE YEARS OF CREDITED SERVICE:
Should a Member's employment with the City terminate for reasons other than
retirement, Disability or death prior to his Normal Retirement Date with five (5) or
more years of Credited Service , he may elect either:
A. To leave his Accumulated Contributions on deposit in the Retirement Fund
and become a Vested Member; or
B. To receive, in lieu of all other benefits, a refund of his Accumulated
Contributions plus two percent (2%) of the Compensation received by him
subsequent to December 31, 1975 and prior to January 1, 1983 .
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If such a Member fails to elect either of the above within ninety (90) days after
his date of termination from the Plan, then he shall be deemed to have elected
to leave his Accumulated Contributions on deposit and become a Vested
Member. A Vested Member shall be entitled to a deferred retirement Benefit
which shall be one hundred percent (100%) of his Accrued Benefit on the date
of his termination of membership in the Plan. Such deferred Retirement
Benefit shall commence on the first day of the next month following the Vested
Member's Normal Retirement Date .
In lieu of receiving the deferred Retirement Benefit upon his Normal
Retirement Date, the Vested Member may elect to receive a reduced
Retirement Benefit beginning upon the first of any month subsequent to his
attainment of age fifty-five (55). The reduction shall be one-fourth of one
percent (.25 %) for each month (three percent (3%] per year) by which payments
commence prior to the first of the month following his Normal Retirement Date.
A Vested Member may elect at any time prior to his Normal Retirement Date
to receive , in lieu of all other benefits under the Plan and provided benefit
payments have not yet commenced, a refund of his Accumulated Contributions,
if any, as of the date of the refund plus two percent (2 %) of his Compensation
received subsequent to December 31 , 1975 and prior to January 1, 1983.
3-6-11: ADMINISTRATION OF THE PLA.J."\J:
3-6-11-1: RETIREMENT BOARD:
There is hereby created a board to be known as the "Retirement Board of the City of
Englewood," which shall be composed of seven (7) members. One (1) member shall
be an elected member of the City Council who shall be selected by a majority of the
members of City Council . One (1) member shall be the Director of Financial Services
appointed by the City Manager. Two (2 ) members shall be employees of the City who
are Members of the Plan, who shall be selected by a vote of all such Members in
accordance with such procedures as the City Manager may adopt, from time to time .
Three (3) members shall be taxpaying electors of the City who shall be selected by a
majority of the members of the City Council. In addition, the City Manager, or his
designee, shall serve in an advisory capacity, as an ex official, nonvoting member.
Members of the Retirement Board shall be appointed for four (4) year terms,
provided the said member continues to possess the qualifications provided herein
during the member's term and, further provided that:
A. The Council member shall serve during his term of office as a Council member;
and
B. The Director of Financial Services shall serve during his tenure in office as such
Director.
Should a vacancy occur in the membership of the Retirement Board, the same
shall be filled for the duration of the unexpired term only, in the same manner
as provided herein. Prior to entering upon the performance of the duties of a
member of the Retirement Board, each member thereof shall take and
subscribe an oath that he accepts the obligations imposed upon him by the
provisions of this Plan and that he shall faithfully perform the duties of such
office.
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Five (5) members of the Retirement Board shall constitute a quorum. All
actions taken by the Board shall be approved by a majority vote of a quorum of
the Retirement Board members. All actions , decisions and determinations of
the Board shall be recorded in the minutes of the Retirement Board and,
unless inconsistent with the provisions of the Plan, shall be binding and
conclusive upon all interested parties.
No member of the Board shall receive compensation for his service on the
Board but a member may be reimbursed for reasonable expenses incurred in
connection with his duties as a member of the Board.
3-6-11 -2: MANAGEMENT OF THE PLAN:
In addition to the powers and obligations imposed upon the Board as Trustee
pursuant to SUBSection 3-6-12-1 hereof, the Retirement Board shall have all powers
necessary to effect the management and administration of the Plan in accordance
with its terms , including, but not limited to, the following:
A. To establish rules and regulations for the administration of the Plan, for
managing and discharging the duties of the Board, for the Board's own
government and procedure in so doing, and for the preservation and the
protection of the Fund.
B. To interpret the provisions of the Plan and to determine any and all questions
arising under the Plan or in connection with the administration thereof. A
record of such action and all other matters properly coming before the Board
shall be kept and preserved.
C. To determine all matters affecting the eligibility of any Employee to be or
become a Member of the Plan.
D. To determine the amount of the Member's contributions to be withheld by the
City in accordance with the Plan and to maintain such records of Accumulated
Contributions as are necessary under said Plan.
E. To determine the Credited Service of any Member and to compute the amount
of Retirement Benefit, or other sum, payable under the Plan to any person.
F. To authorize and direct all disbursements of Retirement Benefits and other
sums under the Plan.
G . To employ such counsel and agents and to obtain such clerical, medical, legal
and actuarial services as it may deem necessary or appropriate in carrying out
the provisions of the Plan.
H. With the advice of its actuary to adopt, from time to time for purposes of the
Plan, such mortality and other tables as it may deem necessary or appropriate
for the operation of the Plan.
I. To make or arrange for valuations and appraisals of Fund assets held under
the Plan, and, with the advice of the actuary, to determine the liabilities of the
Plan.
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J. To hold assets of the Plan in a special account entitled "Retirement Plan
Fund," and invest and reinvest the same and to make such withdrawals
therefrom as are authorized by the Plan for the payment of Retirement
Benefits and the expenses of the Board and the members thereof.
K. To create reserves from such assets for any purpose .
L. To maintain such records and accounts and to render such financial
statements and reports as may be required by the City Council.
M . To authorize one or more members of the Retirement Board to sign all legal
documents and reports on behalf of the Retirement Board.
N. To perform such other duties as may be required of a Plan Administrator
under the applicable laws and regulations.
3-6-11-3: MISCELLANEOUS:
All proper expense incurred by the Retirement Board in the administration of the
Plan, if not paid by the City, shall be paid from the Fund when authorized by the
Retirement Board.
The Retirement Board shall have no power to add to , subtract from or modify any of
the terms of the Plan, nor to change or add to any benefits provided by the Plan, nor
to waive or fail to apply any requirements of eligibility for Retirement Benefits under
the Plan.
A member of the Retirement Board shall not vote on any matter relating solely to
himself or to his rights or benefits under the Plan. If a Board member is so
disqualified to act and the remaining members cannot agree, the City Council shall
appoint a temporary substitute member to exercise all the powers of the disqualified
member concerning the matter in which he is disqualified.
The decision of the Retirement Board and any action taken by it in respect to the
management of the Plan shall be conclusive and binding upon any and all
employees, officers, former employees and officers, Members, Retired Members ,
Vested Members , their Beneficiaries, heirs, distributees , executors, administrators
and assigns and upon all other persons whomsoever , but the Board at all times
shall act in a uniform and nondiscriminatory manner. Neither the establishment of
this Plan nor any modifications thereof or any action taken thereunder or any
omission to act, by the Board, the City Council or any of their members shall be
construed as giving to any Member or other person any legal or equitable right
against the City or any officer or employee thereof or against the Retirement Board,
the City Council, or any of their members.
3-6-12: RETIREMENT PLAN TRUST FUND:
3-6-12-1 : APPOINTMENT OF TRUSTEE:
The Retirement Board of the City, and its members , are hereby appointed and
constituted Trustee of the Retirement Plan Fund and shall hold, manage and control
the same in accordance with the provisions herein contained.
3-6-12-2: THE TRUST FUND:
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All City and Employee contributions and all investments thereof, together with all
accumulatio ns, accruals, earnings and income with respect thereto, shall be held by
the Trustee in trust hereunder as the Trust Fund for use in providing the benefits
under the Plan. No part of the said corpus or income shall be used for or diverted to
purposes other than the exclusive benefit of the Members , Retired Members , Vested
Members , their Beneficiaries or estates under the Plan, prior to the satisfaction of all
liabilities hereunder with respect to them, except such funds which, upon
termination of the Plan, are in excess of the amount required to fully fund the Plan
and are due solely to erroneous actuarial assumptions. No person shall have any
interest in or right to any part of the assets of the Fund except as and to the extent
expressly provided in the Plan.
3-6-12-3: PURPOSES AND AUTHORITY OF THE TRUSTEE:
It is the purpose and intent of the City in constituting and appointing the
Retirement Board as Trustee of the Trust Fund t o give the Retirement Board full
power to establish such investment or purchasing programs as the Retirement Board
may deem necessary or appropriate to provide assurance that there shall be an
adequate source for the payment of all benefits provided herein. The Trustee ,
however, shall not be responsible for the collection of any City or Employee
contributions . In serving as Trustee, the Retirement Board may determine to:
A. Use the Trust Fund for the purchase of one or more group annuity, or other,
insurance policies from one or more Insurance Companies authorized to do
business within the State of Colorado, whereby said Insurance Company
agrees to pay all or a portion of the benefits herein provided for; or
B . Contract with a commercial bank, chartered under either the statutes of the
State of Colorado or the United States of America and doing business within
this State, with a trust company organized pursuant to the statutes of the
State of Colorado and doing business within this State, or with a member of
the New York Stock exchange or the American Stock Exchange , doing business
within this State, to have any of such parties invest funds on behalf of the
Trustee; or
C . Directly invest the assets of the Trust Fund ; or
D. Establish an investment program , partly funded by insurance and partly
funded by investments; or
E. Retain on a discretionary basis an investment advisor licensed as such under
the United States Investment Advisor's Act of 1940, which investment advisor
is also an investment counsel as defined in said Act.
3-6-12-4: INVESTMENTS:
In serving as Trustee , the Retirement Board shall be authorized and empowered, in
its sole discretion, to invest and reinvest the Trust Fund AS FOLLOWS: , without
distinction between p1·ineiptxl txnd income, in such common stocks , prefcl'l'ed stocks,
bonds, notes , debentul'es, mortgtxges, ee1·tifietxtes txnd other seeUl'ities, investments ,
retxl Ol' pel'sontxl propel'ty of txny kind, including pUl'eh:txse txnd letise btxek
tl'txnstxetions, interests in oil txnd othel' deplettxble ntxtlll'txl resoUl'ees, investment in
mututxl funds (open end Ol' othel'wise) txs it mtx:;· detel'mine, w·ithout l'egtxl'd to
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whether such ifivcstmcfits may preduce euncfit iftcemc; previdcd, hewcvcr, that
sheuld the Retiremcfit Beard determific te make ifivcstmefits dii·cetly , witheut aft
ifivcstmefit mafiagemcfit cefitraet with a bank, trust eempafiy ifivcstmcfit ceunscler
er steek exchafige member, theft the fellewifig limitatiefts shall apply:
A. The aggregate ef mefieys ifivested ifi eerperatc steek ef all kifids , tegether with
mefteys ifivested ifi cerperate beftds cefivertible te eerperate steek, shall fiet
exceed thirty percrnt (30%) ef the beek value ef the assets ef the Trust Fufid
hemg directly im·cstcd; afid ASSETS OF THE RETIREMENT FUND
(OTHER THAN ASSETS OF THE DROP ACCOUNTS) SHALL BE INVESTED
IN ACCORDANCE WITH COLORADO REVISED STATUTES SECTION 15-
1.1.-102 , UNDER THE UNIFORM PRUDENT INVESTOR ACT .
B. Ne ifivcstmefit ifi the steek, er cenvcrtiblc beftds , ef afiy smgle cerpm·atiefi shall
cxeeeei five pereefit (6%) ef the beelc value ef the assets ef the Trust Fund: bcmg
directly ifivcsted; afid ASSETS OF THE DROP ACCOUNTS SHALL BE
INVESTED IN ACCORDANCE WITH COLORADO REVISED STATUTES
SECTION 24-54-112 (3) (c).
G. lit fie time shall the Trust Fufid held mere thafi sc·:en pcrcefit (7%) ef the
eutstafidifig steeks er beftds ef tlfi)' eerperatieft.
3-6-12 -5: TRUSTEE'S POWERS :
Subject to the provisions of SUBSections 3 -6-12-3 and 3-6· 12-4, hereof, in its
investment and administration of the Trust Fund, the Trustee is authorized and
empowered with resp e ct to any securitie s or other property held in the Trust Fund:
A . To sell, exchange , convey , transfer, lease for any period , pledge, mortgage,
grant options , contract with respect to or otherwise e ncumber or dispose
thereof, at public or private sale , for cash or upon credit or partly for both, and
no person dealing with the Trustee shall be bound t o see to the application of
the purchase money or to inquire into the validity, expediency or propriety of
any such sale or other disposition.
B. To sue , defend, compromise , arbitrate , compound and settle any debt,
obligation or claim due it as Trustee or any other suit or legal proceeding
involving the Trust, and to reduce the rate of interest on, to extend or
otherwise modify , or to foreclose upon default or otherwise enforce any such
debt, obligation or claim.
C. To give general or specific proxies or powers of attorney with or without power
of substitution .
D. To vote in person or by proxy on any stocks, bonds or other s ecurities for the
conversion thereof into other stocks , bonds or securities , or to deposit them in
any voting trust or with any protective or like committee or with a trustee or
depositories designated thereby, or to exercise any rights to subscribe for
additional stocks, bonds or other securities and to make any and all necessary
payments therefor, and to join and participate in or to dissent from and oppose
any reorganization, recapitalization, consolidation, liquidation, sale or merger
of corporations or properties in which it may be interested as Trustee, upon
such terms and conditions as it may deem wise .
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E. To register any securities or other property in its own name or in the name of
its nominee , with or without the addition of words indicating that such
securities are held in a fiduciary capacity, or to hold any securities in bearer
form, but the books and records of the Trustee shall at all times show that all
such investments are part of the Trust Fund.
F. To retain, manage, operate, repair, improve , partition, dedicate or otherwise
deal with any real estate held by it.
G . To retain uninvested such cash as it may deem necessary, without obligation
to pay interest thereon.
H. In general, to exercise all powers in the management of the Trust Fund which
any individual could exercise in the management of property owned in his own
right.
Necessary parties to any accounting, litigation, or other proceedings shall
include only the Trustee and the City Council, and the settlement or judgment
in any such case in which the City is duly served or cited shall be binding upon
all Members , Retired Members , Vested Members , or Beneficiaries under the
Plan , and upon all persons claiming by , through or under them.
3-6-12-6: ADMINISTRATION OF THE TRUST FUND:
The Trustee shall pay or distribute all Plan benefits from the Trust Fund in such
form , in such amounts , at such times and to such payees as may be authorized by
the Retirement Board .
The Trustee may employ suitable agents and counsel. The expenses incurred by the
Trustee in the performance of its duties hereunder and all proper charges and
disbursements of the Trustee , including all taxes lawfully assessed upon or in
respect of the Trust Fund or its income , shall be charged and paid by the Trustee
from the Fund. No member of the Retirement Board, as Trustee, shall receive
compensation for his services as such but shall be entitled to be reimbursed for any
expenses incurred by him on behalf of the Trust Fund to the extent that such
expenses are not paid by the City.
The Trustee shall keep detailed, accurate accounts of all investments , receipts and
disbursements and other transactions hereunder. All accounts, books and records
relating thereto shall be open to inspection by any person designated by the City at
all reasonable times. The Trustee shall maintain such records , make such
computations and perform such ministerial acts as the City from time to time may
request. On or before August 1 and February 1 of each year, the Trustee shall file a
report with the City in such form as the City may request. This report shall show all
purchases , sales, receipts, disbursements and other transactions effected by the
Trustee during the si.'< (6) month period for which the report is filed. It shall contain
an exact description, the cost value as shown on the Trustee's books and the market
value as of the end of such period of every item then held in the Trust Fund. The
Trustee shall be forever relieved from all liability to the City, the Fund, and any
Member or Beneficiary with respect to the propriety of any of its acts or transactions
shown in such report unless within ninety (90) days after the receipt of such report,
the City gives the Trustee written notice of its objection or objections to any matter
set forth therein.
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The Trustee shall not be liable , either as a body or individually, for the making,
retention, or sale of any investment or reinvestment made by it or originally received
by it as herein provided nor for any expense or liability, hereunder, nor for any loss to
or diminution of the Trust Fund unless due to or arising from its own gross
negligence, misconduct, dishonesty or lack of good faith . The Trustee may consult
with counsel and shall be fully protected in acting upon the advice of counsel. Unless
otherwise advised, the Trustee may assume that the Plan at all times qualifies
under Internal Revenue Code Section 40l (a ) and that the Trust hereby established
is at all times tax-exempt under Internal Revenue Code Section 50l(a), as amended,
or a successor provisions. The Trustee shall have no responsibility for the accuracy of
any information furnished it by the City.
3-6-12-7: REMOVAL OF TRUSTEE:
Nothing herein shall be construed to prohibit the City Council from removing the
Retirement Board as Trustee of the Retirement Fund by appropriate amendment to
this agreement. Upon removal of the Trustee , the City Council shall appoint a
successor Trustee or Funding Agent. Upon delivery by the removed Trustee to its
successor of all property of the Fund, less such reasonable amount as it shall deem
necessary to provide for its expenses , and any taxes or advances chargeable or
payable out of the Fund , the successor Trustee or Funding Agent shall thereupon
have the powers and duties as are conferred upon it by the Trust Agreement or
group annuity contract. No successor Trustee or Funding Agent shall have any
obligation or liability with respect to the acts or omission of its predecessors .
3-6-13: RETIREMENT BENEFITS AND RIGHTS INALIENABLE:
3-6-13-1: INALIENABILITY:
Members, Retired Members, Vested Members and their Beneficiaries under the Plan
are hereby restrained from selling, transferring, anticipating, assigning,
hypothecating, or otherwise disposing of their Retirement Benefit, prospective
Retirement Benefit, or any other rights or interest under the Plan, and any attempt
to anticipate, assign, pledge, or otherwise dispose of the same shall be void. Said
Retirement Benefit, prospective Retirement Benefit and rights and interests of said
Members , Retired Members, Vested Members or Beneficiaries shall not at any time
be subject to the claims of creditors or others for liabilities or torts of said Members,
Retired Members, Vested Members or Beneficiaries, nor be liable to attachment,
execution, or other legal process. Notwithstanding the foregoing, the Retirement
Board may approve payment to an alternative payee based upoR aRy "qualified
domestie relatioRs order" as defined iR IRtemal Revefl:ue Code SeetioR -H4(p), irnd
sueh paymefl:t shall Rot be deemed to be a prohibited alienatiofl: of be Refits.
A. ASSIGNMENTS FOR: CHILD SUPPORT PURPOSES PROVIDED FOR IN
COLORADO REVISED STATUTES SECTIONS 14-10-118 (1) AND 14-14-107,
AS THEY EXISTED PRIOR TO JULY 1, 1996 .
B . INCOME ASSIGNMENTS FOR CHILD SUPPORT PROVIDED FOR IN
COLORADO REVISED STATUTES SECTION 14-14-111.5.
C. WRITS OF GARNISHMENT THAT ARE THE RESULT OF A JUDGMENT
TAKEN FOR ARREARAGES FOR CHILD SUPPORT OR FOR CHILD
SUPPORT DEBT, AND
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D . PAYMENTS MADE IN COMPLIANCE WITH A PROPERLY EXECUTED
AND CERTIFIED COURT ORDER APPROVING A WRITTEN AGREEMENT
DIVIDING RETIREMENT BENEFITS BETWEEN A MEl\!IBER AND AN
ALTERNATE PAYEE ("DRO"), ENTERED INTO PURSUA..'JT TO
COLORADO REVISED STATUTES 14-10-113 (6).
3-6-13-2: BANKRUPTCY:
If any Member, Retired Member, Vested Member or Beneficiary shall become
bankrupt or attempt to anticipate, assign or pledge any benefits under the Plan,
then such benefits shall, in the discretion of the Retirement Board, cease, and in
that event the Retirement Board shall have authority to cause the same, or any part
thereof, to be held or applied to or for the benefit of such Member, his spouse, his
children, or other dependents, or any of them , in such manner and in such
proportions as the Retirement Board may deem proper.
3-6-14: MODIFICATION OR TERMINATION OF PLAN:
3-6-14-1: EXPECTATION:
It is the expectation of the City that it will continue this Plan and the payment of its
contributions hereunder indefinitely, but continuance of the Plan is not assumed as
a contractual obligation of the City.
3-6-14-2: AMENDMENT:
The City reserves the right to alter, amend, or terminate the Plan or any part thereof
in such manner as it may determine, and such alteration, amendment or
termination shall take effect upon notice thereof from the City to the Retirement
Board; provided that no such alteration or amendment shall provide that the
Retirement Benefit payable to any Retired Member shall be less than that provided
by his Accumulated Contributions or affect the right of any Member to receive a
refund of his Accumulated Contributions and shall not directly or indirectly reduce
any Member's Accrued Pension. And provided further , that no alteration or
termination of the Plan or any part thereof shall permit any part of the Fund to
revert to or be recoverable by the City or be used for or diverted to purposes other
than the exclusive benefit of Members, Retired Members , Vested :Yiembers or
Beneficiaries under the Plan, except such funds, if any, as may remain at
termination of the Plan after satisfaction of all liabilities with respect to Members,
Retired Members, Vested Members and Beneficiaries under the Plan and are due
solely to erroneous actuarial assumptions. Further, no amendment shall cause the
elimination of an optional form of benefit nor the elimination or reduction of an early
Retirement Benefit that continues after retirement.
3-6-14-3: APPROVAL UNDER THE INTERNAL REVENUE CODE:
The Plan is intended to comply with the requirements of the applicable provisions of
Internal Revenue Code Section 40l(a), as now in effect or hereafter amended, and
any modification or amendment of the Plan may be made retroactive , as necessary
or appropriate, to establish and maintain such compliance .
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3-6-14-4: DISCONTINUANCE:
The City reserves the right at any time and for any reason satisfactory to it to
discontinue permanently all contributions under this Plan. Such discontinuance shall
be deemed to be a complete termination of the Plan.
3-6-14-5: TERMINATION:
In the event of a partial or complete termination of the Plan, the Accrued Benefits up
to the date of termination by the affected Employees and their Beneficiaries shall be
nonforfeitable and all affected funds shall be allocated to affected Members , Retired
Members, Vested Members and Beneficiaries on the following priority basis of:
A. An amount equal to the Accumulated Contributions , or balance thereof, which
would be payable to the Members, Retired Members , Vested Members or
Beneficiaries should death occur on the date of the termination of the Plan.
B . An amount of the remaining assets equal to a pro rata portion determined on
the basis of the ratio that the actuarial reserve for his Accrued Benefit minus
the amount in A. above credited to him bears to the total of such actuarial
reserves minus the aggregate of amounts allocated under A. above.
3-6-14-6 : DISTRIBUTION:
When the assets of the Trust Fund have been allocated as indicated above, the
distribution may be made in the form of cash or nontransferable annuity contracts
as determined by the Retirement Board, provided that any affected funds remaining
after the satisfaction of all liabilities to affected Members , Retired Members , Vested
Members and Beneficiaries under the Plan may be withdrawn by the Retirement
Board from the Fund and refunded to the City.
3-6-15: BENEFIT RESTRICTIONS ON EARLY TERME·L\TION: RESERVED
3 6 15 1: RESTRICTIONS ON TWENTY FIVE HIGHEST P_\JD EMPLOYEES
EFFECTIVE PRIOR TO J1YNUlLRY 1, 1993:
This Seetien sets ferth the limitatiens required b)-the Internal Revenue Serviee en
the Employer eentributiens whieh may be used fer the benefits ef eertain Empleyees .
This Seetien shall apply te an Empleyee enly if his antieipated annual Pensien
exeeeds ene theusand fin hundred dellars ($1,eOO.OO) and the Empleyee was
ameng the twenty five (2e) highest paid individuals ef his Empleyer at the time ef
sueh Empleyer's initial establishment ef the Plan ("Plan" fer purpeses ef this
Seetien, ineludes the PreYieus Plan) er the date ef a subsequent amendment w·hieh
substantially inerea:sed the pessibilities ef diseriminatien as te Plan benefits. The
limitatiens set ferth in this Seetien shall beeeme appliea:ble if:
A The Plan is terminated v-:ithin ten (10) years filter its initial establishment, ef'
B-. The Pensien ef an Empleyee beeemes payable within ten (10) yea.f's filtef' the
initial establishment ef the Plan.
If subseetien B abeve is applieable, the yestrietiens will remain in effeet until
the Plan has been in effeet fer ten (10) yefil's ff'em the initial establishment
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d if at that time , t
"" ' I oer o,,1y. ' htt"'e ""' heee
will "" "'"• full e"'"'"'' eos • ' · ·ha! li able and the rs f:rom the lfil
d d the restrictions ha"e been fun e ' . he full cunent costs ,
h hott B abeve ;, """ e . eft'eet fer tee (18) yea bl the full ettrm>t If su :" fter the Floe hos beee ';: H eoeheue to """ly ""
. r eoetrH>tt"""" a.e ' fie dote of the --•tt' he first hme If the Em:loyed of tee (18) yearo fro:" t~ easts ere thee me\ for' <ler the Flee
but previously hm1 : tlie retiied or termma e .
Pltte oH "" later tt theluH eunee of b eeefits • oyah e ';;'. ttid shttH he
estahlishmem. or -ear ,er;od, the. exee:.• the ""'"""" aeruo. Y • r tt
after sueh tee (10) id by tltts See"""· a.er ' d \lemlm, ;f!meg, e
paid in a lump. sum m:d~encficiary or estate . 1 "er
d to Ins "" · the Em,
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deeease • . . of tltts See"""· d 'he "'eatest If an Employee l~ su Jcc _ be used for his bcne ts s . b. t to the prov1s10ns fi . hall not excee c " tributions which may con .
f the followmg:
o 8~ .
11 . l $?8 888.8 ;; Or c:.ct • . thousoed do-a>S ,-_ ' o ) f the first •tt.,
G. Tvt'cnty . 1 . t'i'l·enty percent (-8:(, of the Employee
d by ornl"• Jfl'g , I peesoboe o tt I " oufil eom,ute-f the .,.,,,, .. eom -dual years, -10
£;., .\ft.., d dollars ($60,000.00) o . of """hei,abee, or a oHhe ;rube! thousae ". last five (6) , .. a., . betnee the date d O"Cl' rl'.ls b 1. of ;·ears+ average , b . the num e ,, d
thee five (6) yeorsi,e >Plae by sueh Em,Ioye. att .
establishment oft t such Employer, or
f h Plan as o · tiee o • e · the '!'he date of termffio• . " B of tffis Seeboe, : ~. bed;,, subseebo f h termmttbee h case of an nmp . ble if before t c D lo:-y-ce dcscn h date o sue
. ted for each :year
recompu 'L.. Employer. f
h year by rl'.ls d f the purpose o
sue . b "eeede "'' .. uld "bed abo•;e ma;e.. lo ·ees ·.vho "o '!'he Jim;tatietts des"'~, ,oymefils to rehre<l ~":i" d :hat 1) the .
lrieg ettrreet beee . h restriehoM, "'"" e . d Em,Joyee m
m: ... ·., hesuhjeeHo sue d fora,,,. sueh reIBe ""lied eitherte et-e"" . h ,. be use . d " ated are • .d d eo,,.,.H>ttbo~~ :;,~~: ::;,.;ehoru> he"!:.~::;:;,, of Bette:• •':::: "" eeordeeee "' f Pees>0e"' e I uet ef eru>> f
;rovi<lo a !evel amelum,::h Em,Ioyee (or a le•:-.::: the level 6ffiouet o
d the Plott 4'r ' ;,, amoue · thus for tttt-er B Ht ""' grea er d •) the Pees>0n .
optioeal form of h e::,;~ form of Beeefit), ."" ,,;, te the exteet eeee""" Pension under t c ted by monthly pay me -'d d is supplemcn pl'OYl C
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G.
to provielc the full Pension in the basic fo1 m callee! for by the Plan, anel 3)
sueh supplemental payments arc maelc only if the full Clil'rcnt easts of the
Plan have bcci: met or if the aggregate of such supplemental payments
for all sueh rctll'cel Employees eloes not cxcceel the a"~C"atc t 'b . l 00 0 con r1 ut10ns aircaely maelc uneler the Phm in the Year then eul'l'cnt.
The term "benefits" ~s useel in this Section shall not induele the easts of
any elcath benefits with respect to an Employee before retirement, nor
the amount of any elcath benefits actually payable after the death of an
Employee v;hether sueh death occurs before or after retirement.
In confor1:1ity with Sectiofi 1.401 1(e)(2) of the Treasury Regulations, if
the Plan is amcnelcel to mercasc substantiall:i the c'"tent of poss ·bl et ' . . . A 1 e isertm:mahon as to rnntributions anel as to benefits actually payae±c
upofi subsc~ucfit termmahofi of the Plan or subsequent eliscontinuancc
of co~tnbuhons thercufteler, then the provisiofis of this Scctiofi shall be
apphc~ to the Plan as so amcndcel as if it v;ere then a flew plan
cstabhshcd on the elate of such amendment. except that · 1 f th ti · el ·i.. .J . . . , m p aec o c
mitcsenucu m Scet10n 1.401 4(c)(2)(iii), of the Treasury Re..-ulation
th E 1 ·i.. ·
0 s, cmp o:y-er contnuuhofis which may be use el for the benefit of an
Employee who is subJcct to the pro·tisions of this Section shall not cxcccel
the greatest of the following:
The Employer contributions (or funds attributable thereto) which ... oulel h " b ti el . " w a.c ccn app c to prov1elc the benefits for the Employee if the Plan prior to
amendment had been eofitinueel v1ithout change ,
Twenty thousand elollars ($20 ,000.00),
::.he sum of 1) the Employer contributions (or funels ath·ibutablc thereto) vihich
"~uld have been appheel to provielc benefits for the Employee uneler the Plan
pnor to amefidment if it hael bccfi terminate el the ela;· before the effective elate
of change,_ anel 2) an amount compute el by multiplying tv•enty percent (20%) of
the first f1ft:r thousand elollars ($50,000.00) of the annual Compensation of the
~mployee average el over his last five (5) years of pai·tie~pation , or actual years
if less than five (5) years , by the fiumbe1 of Years between the elate of the '
amcnelment of the Plan by the Employe1 anel
-1-. The elate of terminatiofi of the Plan by the Emplo:fcr , or
In the .ease of an Emplo,:yee eleseribeel in subsection B of this Seetiofi, the
date his Benefit becomes payable, if before the elate of such t · f f tb Pl crmma lOfi
O•C an.
Q..
3 6 15 2: RESTRICTIONS OF TWENTY FIVE HIGHEST P_\lD KMPLOYEES
EFFECTED AFTER DECEMBER 31, 1992:
A.
B.
Rcsti·iction of Benefits. In the event of Plan termination, the Benefit hcrcunelcr
of any highly eompens~tcel Employee and any highly compensate el former
Emp~oye _e (~s elefincd m Coele Section 414(Q)) is limited to a benefit that is
nofielisenmmatory under Gode Section 401(A)(4).
Restriction Ofi Distributiofi. The afinual payments '"o any "H" h ?5" E 1
E
el fin el b 1 · ' ig -mp oyec c cc ow) are restricted to an amount equal to the payments that vrnuld
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be made on behalf of the Employee under a single life annuity that is the
f.cetuffi'ial Equivalent of the sum of the Employee's fi:ccrued Benefit and the
Employee's other benefits under the Plan. The restrictions do not apply,
hOWC'\'Cr , if:
:i-. _\fter payment to such Employee of all such benefits, the value of the
Plan assets equal or exceeds one hundred ten percent (110%) of the value
of current liabilities (as defined in Code Section 412(1)(7)), or
f!-:-The value of such benefits for such an Employee is less than one percent
(1%) of the value of such current liabilities.
G. Employ·ees Whose Benefits A:i·e Restricted (High 25 Employees). The
Employees for any given Plan :rear v1hose benefits are restricted under
subsection B above ("High 25 Employees") include the t\venty five (25) highest
paid , for such Plan year, of all highly compensated Employees and highly
compe:i:sated forme1· Employees (as defined unde1 Code Section H4(Q)).
±}.-"Benefit" Defined . For the pur poses of subsection B above , "Benefit" includes
loans in excess of the amounts set forth in Code Section 72(p)(2)(ii:), any
periodic income , any withdrawal values payable to a living Employee, and any·
death benefits not provided for by insll:l'anee on the Employee's life.
3 6 15 3: .\?,IE?ffiMENT OF PLAN:
If the Plan is amended to increase benefits which would substantially increase the
extent of possible discrimination as to contributions or as to benefits upon
termination of the Plan, the restrictions set forth above in Sections 3 6 15 1 and
3 6 15 2 (when each Section is effective), shall be applied to the Plan as if it were a
new plan established on the date of such change.
3 -6-16: LilYIITATIONS:
3-6-16 -1: REEMPLOYMENT OF FORMER NONVESTED MEMBERS:
If a Member's employment terminates prior to his becoming a Vested Member and
the Member is subsequently reemployed as an Employee , such Member shall µot be
entitled to receive credit for his previous Credited Service under the Plan, except as
provided in SUBSection 3-6-4-3 hereof.
3 -6-16-2: REEMPLOYMENT OF FORMER MEMBERS:
If a former Member is reemployed as an Employee of the City, no Retirement Benefit
payments shall be made during the period of such reemployment. Upon the
subsequent vested termination of employment by such a Member, the Member shall
be entitled to receive a Retirement Benefit based on i) his Credited Service prior to
the date of his previous termination (except Credited Service lost after a five (5) year
break under SUBSection 3-6-4-3 hereof), and ii) his Credited Service during the
period of his reemployment, and iii) in the case of a disabled Member, his Credited
Service while disabled. In the case of reemployment, of a former Member who
received, prior to his reemployment, any benefit payments (whether single sum or
periodic) with respect to which Credited Service is restored hereunder, the
Retirement Benefit payable upon his subsequent retirement shall be reduced by the
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Actuarial Equivalent of such payments, other than Disability Retirement Benefit
payments, he received prior to his Normal Retirement Date, unless such payment
was a single sum that was repaid under SUBSection 3 -6-4-3 hereof.
3-6-16-3: LIMITATION OF BENEFITS:
Effective January 1, 1987, notwithstanding any other provision contained herein to
the contrary, the benefits payable to a Member from this Plan provided by City
contributions shall be subject to the limitations of Internal Revenue Code Section
415 in accordance with subsections A and B below:
A. D efined Benefit Plan Only . Any annual Pension payable to a Member
hereunder shall not exceed the lesser of:
1. Ninety thousand dollars ($90,000.00), adjusted for increases in the cost
of living, as prescribed by the Secretary of the Treasury or his delegate,
effective January 1 of each calendar year and applicable to the
Limitation Year ending with or within such calendar year, or, if greater,
the amount of straight life , or qualified joint and survivor annuity
accrued by the Member as of December 31, 1982 , OR
2.
3.
One hundred percent (100%) of the Employee's average earning for the
three (3) consecutive calendar years, while a Member in the Plan, in
which his earnings were the highest. For purposes of this subsection,
earnings for any Limitation Year shall be the Member's earned income,
wages , salaries , and fees for professional services, and other amounts
received for personal services actually rendered in the course of
employment with the City (including, but not limited to , commissions
paid salespersons, compensation for services on the basis of a percentage
of profits, commissions on insurance premiums , tips and bonuses),
provided such amounts are actually paid or includible in gross income
during such Year. Earnings shall exclude the following:
a. City contributions to a plan of deferred compensation which are not
included in the Member's gross income for the taxable year in which
contributed or City contributions under a simplified employee
pension plan to the extent such contributions are deductible by the
Member, or any distributions from a plan of deferred compensation;
and
b. Other amounts which received special tax benefits , or contributions
made by the City (whether or not under a salary reduction
agreement) towards the purchase of an annuity described in
Internal Revenue Code Section 403(b) (whether or not the amounts
are actually excludable from the gross income of the Member).
THIS SUBSECTION 2, SHALL NOT BE EFFECTIVE FOR YEARS
BEGINNING ON AND AFTER JANUARY 1, 1995.
Except as provided in subsection A5 below , which imposes additional
limitations on the amounts payable to Members with less than ten (10)
years of service, the foregoing limitations shall not be applicable with
respect to any Member whose annual Pension under this Retirement
System, and any other defined benefit plan maintained by the Employer,
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4.
5.
6.
is less than ten thousand dollars ($10,000 .00), and such Member has
not at any time participated in any defined contribution plan (within the
meaning of Section 415(k) of the Code) maintained by the Employer.
In the event that a Member has less than ten (10) years of participation
in this Retirement System and predecessor plans hereto , the dollar
limitation otherwise applicable under subsection Al above shall be
reduced by multiplying such limitation by a fraction, the numerator of
which is the number of such Member's years of Plan participation (or
part thereof), but never less than one (1), and the denominator of which
is ten (10). This paragraph shall, to the extent required by the Secretary
of the Treasury, be applied separately to each change in benefit structure
hereunder.
In the event that a Member has been credited with less than ten (10)
years of service, the percentage-of-average-earnings limitation otherwise
applicable under subsection A(2) above and the dollar amount otherwise
applicable under subsection A(3) above shall be reduced by multiplying
each by a fraction, the numerator of which is the number of such
Member's years of service (or part thereof), but never less than one (1),
and the denominator of which is ten (10).
The limitations of this Section apply to a straight life annuity with no
ancillary benefits and to an annuity that constitutes a qualified joint and
survivor annuity, provided payment begins between ages si..'Cty-two (62)
and sixty-five (65). If payment commences before age si..'Cty-two (62), the
foregoing limitations shall be reduced so that they are Actuarially
Equivalent to such a benefit commencing at age si..'Cty-two (62). However,
the reduction of this paragraph shall not reduce the limitation below
seventy-five thousand dollars ($75 ,000.00), if payment commences after
age fifty-five (55), or below the Actuarial Equivalent of seventy-five
thousand dollars ($75,000.00) commencing at age fifty-five (55), if
payment commences before age fifty-five (55 ). If payment commences
after age sixty-five (65), the limitation shall be the Actuarial Equivalent
of a ninety thousand dollars ($90,000.00) annual benefit commencing at
age sixty-five (65). The interest assumption for purposes of determining
Actuarial Equivalency under this paragraph shall be the interest rate
otherwise used for purposes of computing optional forms of income
payable under the Plan, but the rate shall not be less than five percent
(5%) annually if benefits commence before age sixty-five (65) and shall
not exceed five percent (5%) annually if benefits commence after age
sixty-five (65).
7. FOR LIMITATION YEARS BEGINNING ON A."'-iu _.\FTER Jru"'JUARY 1,
1995, THE PROVISIONS OF SUBSECTIONS 4 , 5 _.\.."\;u 6 , OF THIS
SUBSECTION (3-6-16-3(A), SHALL NOT APPLY TO DISABILITY
RETIREMENT UNDER SUBSECTIONS 3-6 -6--! _.\.."\;u 3-6-7-3 , OR TO
DEATH BENEFITS UNDER SUBSECTIONS 3-6-9-1, 3-6-9-2, 3-6-9-3
AND 3 -6-9-4, OR TO SUPPLEMENTAL DEATH BE~"EFITS UNDER
SUBSECTIONS 3-6-9-5.
Defined Benefit and Defined Contribution Plans. If, in any Limitation Year a
Member also participates in one or more defined contribution plans
maintained by the City, then for such Limitation Year, the sum of the Defined
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Benefit Plan Fraction and Defined Contribution Plan Fraction (as described
below) for such Limitation Year shall not exceed one. The Defined Benefit
Fraction for any Limitation Year shall mean a fraction a) the numerator of
which is the projected annual benefit of t he Member under the Plan
(determined as of the close of the Limitation Year), and b) the denominator of
which is the lesser ofone hundred twenty -five percent (125 %) of the dollar
limitation under Internal Revenue Code Section 415(b)(l)(A) or one hundred
forty percent (140 %) of the percentage limitation under Internal Revenue Code
Section 415(b)(l)(B) for the year of determination (taking into account the effect
of Section 235(g)(4) of the Tax Equity and Fiscal Responsibility Act of 1982).
The Defined Contribution Fraction for any Limitation Year shall mean a
fraction a) the numerator of which is the sum of the annual additions (as
defined in Internal Revenue Code Section 415 (c)(2)) to the Member's accounts
under all defined contribution plans maintained b y the City as of the close of
the Limitation Year (subject to reduction to the extent permitted under the
transition rule in Section 235(g)(3) of the Tax Equity and Fiscal Responsibility
Act of 1982), and b) the denominator of which is the sum of the lesser of one
hundred twenty-five percent (125%) of the dollar limitation under Internal
Revenue Code Section 415 (c)(l )(A) or one hundred forty percent (140 %) of the
percentage limitation under Internal Rev e nue Code Section 415 (c)(l)(B), for
such Limitation Year and for all prior Limitation Years during which the
Member was employed by the City (provided, however, at the election of the
Retirement Board, the denominator shall be increased by using for Limitation
Years ending prior to January 1, 1983 , an amount equal to the denominator in
effect for the Limitation Year ending in 1982 , multiplied by the transition
fraction provided in Internal Revenue Code Section 415 (e)(6)[B]).
If, in any Limitation Year, the sum of the Defined Benefit Plan Fraction and
Defined Contribution Plan Fraction for a Member would exceed one (1.0)
without adjustment of the amount of the maximum annual pension that can
be paid to such Member under paragraph Al of this SUBSection, then the
amount of the maximum annual pension that can be paid to such Member
under paragraph Al, HEREOF, of this Seetion, shall be reduced to the extent
necessary to reduce the sum of the Defined Benefit Plan Fraction and Defined
Contribution Plan Fraction for such Member to one , or the Retirement Board
may take such other actions as will cause the sum to equal one (1.0) or less.
For purposes of this Section, the Limitation Year shall be the calendar year.
THIS SUBSECTION B , SHALL NOT BE EFFECTIVE FOR YEARS
BEGINNING ON AND AFTER JANUARY 1, 2000.
3-6-16-4: CONSOLIDATION OR MERGER:
The Plan shall not be consolidated or merged with, nor shall any assets or liabilities
be transferred to any other Plan, unless the benefits payable to each Member if the
Plan were terminated immediately after such action would be equal to or greater
than the benefits to which such Member would have been entitled if this Plan had
been terminated immediately before such action.
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3-6-17: MISCELLANEOUS PROVISIONS:
3-6-17-1: RIGHTS OF MEMBERS:
Each Member shall be advised of the general provisions of the Plan and upon
written request addressed to the Retirement Board shall be furnished with any
information requested regarding his status , rights and privileges under the Plan.
Neither the establishment of the Plan, the granting of a Retirement Benefit, nor any
action of the City or the Retirement Board shall be held or construed to confer upon
any person any right to continue employment, nor, upon dismissal, any right or
interest in the Trust Fund other than as herein provided.
3-6-17-2: LIMITATION OF LIABILITY:
No Member shall have any right to Retirement Benefits under the Plan, except such
rights, if any, as may accrue to him upon his retirement from the service of the City
under the provisions of the Plan while it is in effect. All such benefits are payable
solely out of the Trust Fund and in no event shall the City, the Trustee, or the
Retirement Board members be liable therefor. Neither the establishment of this
Plan, nor any amendment or modification thereof, nor failure of the City to provide
sufficient contributions to the same shall be construed as giving to any Member, or
other person, any legal or equitable right against the City, or any officer or director
thereof, or against the Retirement Board, or any Member thereof.
3-6-17-3 : DIRECT ROLLOVERS:
A. GENERAL. THIS SECTION APPLIES TO DISTRIBUTIONS MADE ON OR
AFTER JANUARY 1, 1993. NOTWITHSTANDING ANY PROVISION OF
THE PLAN TO THE CONTRARY THAT WOULD OTHERWISE LIMIT A
DISTRIBUTEE'S ELECTION UNDER THIS SECTION, A DISTRIBUTEE
MAY ELECT, AT THE TIME A1'\ffi IN THE MANNER PRESCRIBED BY THE
BOARD, TO HA VE ANY PORTION OF AN ELIGIBLE ROLLOVER
DISTRIBUTION WHICH EXCEEDS $200 PAID DIRECTLY TO A.i"l"
ELIGIBLE RETIREMENT PLA1'-J SPECIFIED BY THE DISTRIBUTEE IN A
DIRECT ROLLOVER. IF A DISTRIBUTEE'S DIRECT ROLLOVER
DISTRIBUTION IS LESS THA1"l" $500, THE DISTRIBUTEE lYIAY ONLY
ELECT TO DIRECT ROLLOVER 100% OF THE ELIGIBLE ROLLOVER
DISTRIBUTION.
B. DEFINITIONS:
1. ELIGIBLE ROLLOVER DISTRIBUTION. AN ELIGIBLE ROLLOVER
DISTRIBUTION IS ANY DISTRIBUTION OF ALL OR ANY PORTION
OF THE BALANCE TO THE CREDIT OF THE DISTRIBUTEE,
EXCEPT THAT AN ELIGIBLE ROLLOVER DISTRIBUTION DOES
NOT INCLUDE: ANY DISTRIBUTION THAT IS ONE OF A SERIES
OF SUBSTANTIALLY EQUAL PERIODIC PAYMENTS (NOT LESS
FREQUENTLY THAN A1"l"NUALL Y) MADE FOR THE LIFE (OR LIFE
EXPECTANCY) OF THE DISTRIBUTEE OR THE JOINT LIVES (OR
JOINT LIFE EXPECTANCIES) OF THE DISTRIBUTEE A1'\ffi THE
DISTRIBUTEE'S DESIGNATED BENEFICIARY, OR FOR A
SPECIFIED PERIOD OF TEN YEARS OR MORE; ANY DISTRIBUTION
TO THE EXTENT SUCH DISTRIBUTION IS REQUIRED UNDER
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CODE SECTION 401 (a) (9); AND THE PORTION OF ANY
DISTRIBUTION THAT IS NOT INCLUDABLE IN GROSS INCOME
(DETERMINED WITHOUT REGARD TO THE EXCLUSION FOR NET
UNREALIZED APPRECIATION WITH RESPECT TO EMPLOYER
SECURITIES).
2. ELIGIBLE RETIREMENT PLAN . AN ELIGIBLE RETIREMENT PLAN
IS AN INDIVIDUAL RETIREMENT ACCOUNT DESCRIBED IN CODE
SECTION 408 (a), AN INDIVIDUAL RETIREMENT ANNUITY
DESCRIBED IN CODE SECTION 408 (b ), AND ANNUITY PLAN
DESCRIBED IN CODE SECTION 403(a), OR A QUALIFIED TRUST
DESCRIBED IN CODE SECTION 401 (a), THAT ACCEPTS THE
DISTRIBUTEE'S ELIGIBLE ROLLOVER DISTRIBUTION. HOWEVER,
IN THE CASE OF AN ELIGIBLE ROLLOVER DISTRIBUTION TO THE
SURVIVING SPOUSE , AN ELIGIBLE RETIREMENT PLAN IS AN
INDIVIDUAL RETIREMENT ACCO U NT OR I!\Jl)IVIDUAL
RETIREMENT ANNUITY .
3 . DISTRIB U TEE. A DISTRIBUTEE INCLU DES . ..\..'-J EMPLOYEE OR
FORMER EMPLOYEE. IN ADDITION , THE E::v1PLOYEE 'S OR
FORMER EMPLOYEE'S SURVIVING SPOUSE AND THE
EMPLOYEE 'S OR FORMER EMPLOYEE 'S SPO U SE OR FORMER
SPOUSE WHO IS THE ALTERNATE PAYEE UNDER A QUALIFIED
DOMESTIC RELATIONS ORDER, AS DEFINED IN CODE SECTION
414(p ), ARE DISTRIB UTEES WITH REGARD TO THE I NTEREST OF
THE SPOU SE OR FORMER SPOU SE.
4 . DIRECT ROLLOVER. A DIRECT ROLLOVER IS A PAYMENT BY THE
PLAN TO ONE ELIGIBLE RETIREMENT PLA...'-J SPECIFIED BY THE
DISTRIBUTEE.
5. WAIVER OF 30 DAY NOTICE FOR CASHO U TS OF $5,000 ($3,500
PRIOR TO JANUARY 1, 1998) OR LESS. IF A DISTRIBUTION IS
ONE TO WHICH CODE SECTIONS 401 (a) 911) AND 41 7 DO NOT
APPLY , SUCH DISTRIBUTION MAY COMlv IENCE LESS THAN
THIRTY (30) DAYS AFTER THE NOTICE REQ UIRED UNDER
TREASURY REGULATION SECTION 1.411 (a ) -ll (c), IS GIVEN,
PROVIDED THAT:
a. THE BOARD CLEARLY INFORMS THE :yfEMBER THAT THE
MEMBER HAS A RIGHT TO A PERIOD OF AT LEAST THIRTY
(30 ) DAYS AFTER RECEIVING THE NOTICE TO CONSIDER
THE DECISION OF WHETHER OR NOT TO ELECT A
DISTRIBUTION (AND , IF APPLICABLE , A PARTICULAR
DISTRIBUTION OPTION), AND
b . THE MEMBER, AFTER RECEIVING THE NOTICE ,
AFFIRMATIVELY ELECTS A DISTRIBUTION.
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Section 2. Safety Clauses . The City Council, hereby finds, determines, and
declares that this Ordinance is promulgated under the general police power of the
City of Englewood, that it is promulgated for the health, 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 convenience and welfare. The City Council further
determines that the Ordinance bears a rational relation to the proper legislative
object sought to be obtained.
Section 3. Severabilitv. If any clause, sentence, paragraph, or part of this
Ordinance or the application thereof to any person or circumstances shall for any
reason be adjudged by a court of competent jurisdiction invalid, such judgment shall
not affect impair or invalidate the remainder of this Ordinance or its application to
other persons or circumstances.
Section 4. Inconsistent Ordinances. All other Ordinances or portions thereof
inconsistent or conflicting with this Ordinance or any portion hereof are hereby
repealed to the extent of such inconsistency or conflict .
Section 5. Effect of repeal or modification . The repeal or modification of any
provision of the Code of the City of Englewood by this Ordinance shall not release,
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 shall be treated and held as 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 for
the purpose of sustaining any judgment, decree, or order which can or may be
rendered, entered, or made in such actions , suits, proceedings, or prosecutions.
Section 6 . P e naltv. The Penalty Provision of E.M.C. Section 1-4-1 shall apply to
each and every violation of this Ordinance .
Introduced, read in full, and passed on first reading on the 21st day of June, 1999 .
Published as a Bill for an Ordinance on the 25th day of June , 1999.
Amended, reintroduced, read in full, and passed as amended on the 6th day of July,
1999.
Publishe~ as an amended Bill for an Ordinance on the 9th day of July , 1999.
Read by title and passed on final reading on the 19th day of July, 1999 .
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Published by title as Ordinance No. !/i2 Series of 1999, on the 23rd day of July,
1999.
I , Loucrishia A. Ellis, City Clerk of the City of Englewood , Colorado , hereby certify
that the above and foregoing is a true copy of the Ordinance passed on final reading
and published by title as Ordinance No .1/l), Series of 1999.
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COUNCIL COMMUNICATION
Date Agenda Item Subject A bill for an ordinance
adopting the City of Englewood
NonEmergency Retirement
July 6, 1999 11 a ii Plan Document (the Plan)
Initiated By Staff Source
Department of Financial Services Frank Gryglewicz, Director
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
The City Council discussed this issue at a study session held on September 8, 1998. Council
approved Council Bill , Series of 1999 on first reading on June 21, 1999.
RECOMMENDED ACTION
Staff recommends the City Council approve the attached bill for an ordinance.
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
This ordinance does not substantially change the current level of pension benefits for the
NonEmergency Retirement Plan participants. The ordinance provides plan participants the option of
participating in a Deferred Retirement Option Plan (DROP).
The Plan document is amended to comply with state statutes, federal guidelines and provide a
Deferred Retirement Option Plan (DROP) benefit for the participants.
Martin Semple, Attorney at Law, reviewed the proposed Plan and made the following recommended
addition to cross-reference applicable Sections in the City Code:
Credited service shall not include any period of time that a
member continues working for the City after commencement of
the member's participation in the Deferred Retirement Option Plan
pursuant to Section 3-6-7-8.
No other alternatives were considered.
FINANCIAL IMPACT
Based upon current assumption the cost will be approximately $90,000 per year.
LIST OF ATTACHMENTS
Letter from Martin Semple
Proposed bill for an ordinance
SEMPLE, lVIILLER, DeLAY & MOONEY, P.C.
MARTIN SEMPLE
REESE MILLER
KENNETH A. DeLAY
PATRICK B. MOONEY
CHRISTOPHER E. GDOWSKI
KATHLEEN M. SHANNON
ELIZABETH J. HYATT
JULIE C. TOLLESON
Daniel L. Brotzman, Esq.
City Attorney
City of Englewood
3400 South Elati Street
Englewood, Colorado 80110
Attorneys at Law
The Chancery Building, Suite 1308
1120 Lincoln Street
Denver, Colorado 80203
Telephone 303-595-0941
Fax 303-861-9608
June 28, 1999
Re: Non-Emergency Collective Bargaining Agreement
Amendment to EMC 3-6: "DROP" Plan
Dear Dan:
-of counsel-
FRED C. KUHLWILM
DURANGO OFFICE
Telephone 970-884-4402
I have reviewed the proposed amendments to the Englewood Municipal Code 3-6
with the incorporation of the DROP Plan and its potential effect on Article 24 of the
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collective bargaining agreement between Englewood Municipal Employees and the City of •
Englewood. The only potential impact is on the calculation of the "number of years
accredited service" in subsections (a) and (b) of Article 24. While the Code revision in
Section 3-6-7-8H states that upon commencement in DROP "a member's credited service,
final average monthly compensation and accrued benefits shall be frozen," because of the
specific reference in Article 24 to the rights associated with the years of credited service as
a matter of caution, I would suggest that the Code provision on Limitation on Credited
Service in Section 3-6-4-2 specifically include a cross-reference to Section 3-6-7-8 to the
effect that
to the effect:
Credited service shall not include any period of time that a
member continues working for the City after commencement of
the member's participation in the Deferred Retirement Option
Plan pursuant to Section 3-6-7-8.
If you have any other questions, please give me a call.
Sincerely,
SEMPLE, MILLER, DELAY & MOONEY, P.C.
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,' ;l_ J ;(~ ·1 //[~ /':
Martin Semple ~
MS/Isa
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