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HomeMy WebLinkAbout2002 Resolution No. 002• RE ::-O1 . ION NO .~ • • ER IES OF 2002 A RESOLUTION AUTHORIZING AN AME NDMENT TO THE fCMA RETIREMENT CORPOR.\TIO N GOVERNi\fE NTAL :VIONEY PURCHA SE PLAN & TRU T ADOPTIO N AGREE~IENT FOR TH E ENGLEWOOD POLr CE OFF ICE RS -!Ol a MO NEY P RCHASE PL-\N (PLA:--1). WHEREAS , t he En gle wood Police Benefit Associ ation (EPBA) Co ntra ct arbitration provided fo r a o ne perce nt e mpl oye r co ntribution inc re ase fo r EPBA membe rs hip ; and WHEREAS , th e EPBA memb ers hi p has re qu ested t he empl oyee co ntribu ti on be in c reased by o ne pPrce nt: nnd WH E RE AS . the Pla n memb e rs hip co ns is ts of E PBA me mb ers a nd Police management staff: a nd WHER EAS , a vote of the Pla n me mb e rs hip app ro ved none pe rce nt e mpl oyer incre:lSe a nd a o ne percent e mployee increase effective Janu a ry 1. 2002: and WHEREAS. t he passage of this Reso luti o n amends th e e xi s ting Pla n by providing a o ne pe rce nt employer increa se (nine pe rcent tota l) and a one pe rce nt employee increase (nine pe rcent total) for Pl a n me mb e rs hip : a nd \V H ERE.-\S , t he Pl a n r.:n"lbers hi p passed the adopted change to t he Pi nn by a n e lection held Decem ber 21, 200l : NO W, THEREFORE , BE IT RE SO LVED BY THE CITY CO UNC IL OF TH E CITY OF ENGLE WOOD, CO LO RADO. THAT : Si!l;tum_l. The City Co un ci l of th e Ci ty of Engl ewoo d, Co lorado here by authoriz es a n a me ndment to th e "ICi\'lA Retirement Co rp oration Governmental ~loney Purchase Plan & Trus t Adop tio n Agree ment" fo r th (> Eng lewood Police Officers 40 la Mo ney P ur cha se Pl an , a co py of wtu ch is marke d as "Exhibit A" a nd attached h'?reto. ~. The Director of Finance and Administrative Se rvices and City Clerk are here by autho rized to s ign and atte s t said Am endm e nt to the "lCMA Retire me nt Co rpo rnu o n Governm entnl :vt oney Purchase Plan & Tru st :\d opuon Agreement" on behalf of the Ci ty of Englewoo d. AD OPTED A:--JD APPP.OVED this ith of Janua ry, 2002 . • I, Loucris hio A. Ellio , City Clerk fo r the City ofEnglewood , Co lora do, her e by ce r tify the ,_,.., O , ""' °"' O ''"'''°" No .2,. '""""~ . ✓ • ~ -;_·· y ~ • MONEY PURCHASE PLAN ADOPTION AGREEMENT • AMENDMENT FOR PLAN 108.170 ICMA RETIREMENT CORPORATION The Pub lic service Van ta gepoint since 1972 • MPP Adopt ion Agreement 03/25 /1998 Page 1 of 8 T A IC MA RET IREMENT CORP ORAT ION GOVERNMENTAL MONEY PURCHASE PLAN & TRUST ADOPTION AGREEMENT Account Number : 1083 70 The Empio ye r hereby establishes a Mo ne y Purchase Plan and Trust to be known as the "Plan") in the form of the ICMA Reti rement Co rp o ration Prototype Money Purchase Plan and Trus t. CITY OF ENGLEWOOD /POLICE ___________________ _ T his Plan is an amendment anc' restatement of an exis ting defined co ntribut io n mo ney purchase plan. Yes No If ye s. pleas e specify th e name of the defined co ntribution money purc hase plan whic h this Plan hereby amends and restate s: CITY OF ENGLE WOOD POLI CE PENSI ON PLAN Summary of Changes · Contribution provisions amended. Effective Date of These Changes : I. II. Ill. Employer: CITY OF ENGLEWOOD' COLORAD O The Effect ive Date of the Plan sh all be the first day of the Plan Yearl•uring which the Employer adopts the Pl an. unle ss an alternate Effective olte is hereby specified : 0l /01 /1986 · Plan Year will mean : (_) The twelv e {12 ) conse cu tive mo nth peri od which coincides with the li mitation yea r. (See Se c!io n 5.04(i) of the Plan.) (~) The twel ve (12) consecutive month pe riod com menc ing on o 1 / o 1 and each an niversary thereoi. IV . Normal Retirement Age sha ll be age~ (not to exc eed age 6:i). MPP Ado puon Agreeme nt 03/2:, 199a Page 2 oi 8 V . ELIGIBILIT Y REQUIREMENTS : 1. The following group or groups of Employe es are el igible to participate in the Plan : All Employees All Full Employees Salaried Empl oyees Non-Un io n Employees Management Employees Public Safety Employees General Employees ~ Other (specify below) ALL POLICE OFFICERS HIRE~ AFTER 4/17/78 The group ~pecified must correspond to a group of the same designation that is defined in the statutes. ordinances, rules , regulations , personnel manuals or other mate ri al in effe cr. in the state or locality of the Employer. 2. The Employer hereby waives or reduces the rec..iirement of a twelve (12) month Period of Service for participati on . ,he required Period of Service shall be N /A (write N/A if an employee is eligible to participate upon employment). If th;s waiver or reduction is elected, it sha ll apply to all Employees within the Covered Employment Classification. 3 . A minimum age requirement is hereby specifi ec for eligibility to participate. Th e minimum age requirement is 21. oo (not to exceed age 21. Write NI A if no min imum age is declared .) VI. CONTRIBUT IO N PROVISIONS 1. The Empl oyer sh all contribute as follows (cheese one ): (~) Fixed Employer Contributions With Or Without Mandatory Participant Contributions. The Employer shall contn:iute on ::ehalf oi each Par ti cipan t 9. oo % of Earn ings or .3 -,-----for the Plan Ye ar (subject to the limita ticr:s of A rt ic!e V of the Plan ). Eac h Participant is requirec to contribute 9 . 00 % of Earnings or$ ____ :e r the Plan Year as a cond itio n of partlcip~;on in the ;:•an. (W rit e "O" if no • • cu,;<ribution is required.) If Part ic :;:ant Contributions are • requ ired under this option . a Par.:::pant shall not have the: MPP Adoption Agreement 03 /25 i 1998 Page 3 of 8 • • right to discon tin ue or vary the rate of such c.1 ntribulio ns after becoming a Plan Participant. The Employer hereb y elects to "pick up" the Mandatory/Requ ired Participant Contributio n. Ye s No [Note lo Emplo yer: A d etermination letter issu ed to an adopting Employer is not a ruling by the Internal Revenue Service that Part ici pant contributions that are picked up by the Employe r are no t includable in the Pa rticipa nt's gross income for federa l income tax purposes . The Employer may see k such a ruling . Picked up co ntributions are excludable from the Participant's gros s income under section 4 14{h )(2) of the Intern al Rev enue Code of 1986 only if th ey meet the re qu irements of Rev. Rul. 811981C .B . 255 . Those requireme nts are (1) that the Employe r must spe cify that the co nt ribu tions , although desig nated as employee contributions, are be ing paid by the Employer in lieu o f contribu tions by th e employee; and (2) the emplcyee must not have the opti o n of receiving the co ntributed amounts directly instead of ha ving the m paid by the Empl oyer lo the plan.] (_) Fixed Er.iployer Match of i'articipant Contributions . The Employer shall contribu te on behalf of each Participa nt % of Earnings for the Plan Yea r (subject to the limita tio ns cf Article V d the Plan) for each Plan Ye ar that such Participant has con tributed % of Earn inos or S _____ Under t~ois option , there i5 a single. fi xed rate of Employer contributions, but a Partic ipant may decline to make the required Participant contribu tions in any Plan Year, in which case no Employe r co ntrib ution will be made on the Participant's beha lf in th at Plan Yea r . MPP "doption "greemenl 03/25/1998 Page J o f 8 2. (_) Variable Employer Match Of Participant Contributions. The Employer shall co ntribute on behalf of each P art icipant an am ourt de term ine d as follows (subjec t lo the lim itatio ns of Art ic le V of the Plan): % of the co ntri but :ons mace by the Participant for the Plan Year (n ot including Pa n ici pant contributions exceeding ___ % of Earnings e r S _____ ); PLUS % of the contributions made by the Partici pant for the Plan Year in excess of tho se included in the above paragraph (but not inc:udi ng Partici pant contributions exceeding in the aggreg ate ___ % of Earn ings or$ _____ ). Employer Contri butions on behalf oi a Participant for a Plan Year shall not exceed$ _____ or % of Earn ings, whichever is more er le ss . Each Partici pant ma y make a vol untary (unm atc:-:ec!), after-l ax contribution , subje ct to the limitations of Secti on .!.0 5 ~nd A,1 icle V of the Plan . Yes No 3 . Employer contribut ions and Part icipant contrib utcns sr all be contributed lo the Trus t in ac cordance with the fc .lowin g ~:i:,ment schedul e: BI-WEEKLY VII. EARNINGS Earn ings , as defined under Sec tion 2 .09 of the Plan , sr.all include : (a ) Overtime Yes :c No (b ) Bonu ses Yes ~ No MPP Acopuon Agree ment 03/251 998 Pa~• S of 8 • • • • • • Vlll . LIMITAT ION ON ALLOCATIONS If the Employer maintains or ever maintained anot her qualified plan in whic:- any Partic ipan t in this Plan is (or was ) a participant or co uld possibly becor.,e a partic ipant . th e Employer hereby agrees to limit con tribut io ns to all such plans as provid ed here in, if neces sary in o rder to avoid excess contributior,;; (as described in Sect ions 5.02 and 5.03 oi the Plan ). 1. If the Particip ant is co vered under another c,ualified defined contribt.m:m plan maintained by the Employ er , the prov isions of Section 5.02 (a ) through (f ) of the Pl an will apply unless another method has teen indicated below . (_) Other Meth od . (Provi de the method under which the plans wi ll limit tota l Annual Ad di tio ns to the Ma xi mum Permissible Amo un t, an d will properly reduce any exce,ss amounts , in a manner that precludes Emplover discretion .) If the Parti cipant is or has ever been a partic ipant in a defined benefit plan maintained by the Employer, and if the limitatio n in Sect ion 5.0 ::. of the Plan would be exceeded , tllen the Part ici pant's Proje cted Annua1 Ben efit under the defined benefit pla n shall be red ~1ced in accordar:c:e with the terms thereof o th e extent necessary lo sa tis fy such limilati<:Jn . Ii such plan does not provide fo r such reduction, or if the lim itati on = still exceeded after the reducti on, a,,nual additions shall be reducec: 10 the extent nee essary in the m:inner described in Sections 5 .02 anc 5 .01. The methods of avoidi ng th e limitation described in thi s para graph will not apply if the Employer indicates another method bel ow . (_) Other Method . (Note to Etrployer: Provide below languag e which will satis f:. the 1.0 lim ilation of sectio r 415 (e ) of the Code . Such language must preclude Employer discretion. See se cti on 1.415of the Regulari c:ms fo r guida nce .) 3. The limitation ye ar is the following 12 month period : MPP Adopt ion Agreement 03125 , 99 8 Pa,e 5 or a IX. VE ST ING PROVISI O NS The E mp loyer hereb y spec ifi es the foll c.,wing ves ti ng sched ule. sub je ct to (1) th e m inimum vesting req u irements as noted and (2) the co ncurrenc e of the Pla n Ad ministrator. Yea rs of Se rv ic e Perce nt ComQ lete d Vesti ng_ Zero 0 .00 % One 0 .00 % Two 0 .00 % Three ~% Four ~% Five 6o.00 % Si x 8 0 . 00 % Seven 1 0 0 .00 % Eight 1 0 0.00 % Nine 1 00 .00 % Ten 1 0 0 .00 % X. Loans are permitted und e r th e Pl an , as provided in Art icl e XIII : Yes No XI. The Employ,;,-hereby attests that it is a unit of state or local government or an ag e ncy or instrument al it y of one or more un its of state o r local government. XII. The P lan Administrat or here by agrees to info rm the Employe r of an y am e ndments to the Plan ma de pursuant to Sect ion 14 .0 5 of the Plan or o f the dis co ntinuance or ab a ndonment of the Plan . XI II. T he Employe r hereby a ppoi nts the ICM A Retirement Co rpo ra :ion as the Plan Administrator pursuant to the terms and co ndi tio ns of the ICMA RETI REMENT CORPORA TION GOV ERNME NT AL MO NEY P URCHASE PL A N & TRUST . The Employ er hereby agrees to the prov ision s of ttie Plan a nd T rust. XIV . The Em ployer hereby ac knowledges it un ders tands tha t fa ilure to pro pe rl y fill out th is Adop ti o n Agreemen t may re sult in disqu alific at ion of th e Plar,. MP P Adopuc,n Agreement 03/25 ;1999 Page 7 of 8 • • • • '!.V . An adopting Employer may not rely on a determination letter issued by the National or District Office of the Internal Revenue Service as eviden ce that the Plan is qu~lified under section 401 of the Internal Revenue Code . In order o obtJin reliance with respect to plan qualification , the Emplo i,er mus t app ly to the appropriate key district office for a determination letter. In Witnsss Whereof, the Employer hereby causes this Agreement to be executed on this __ day o f _______ . 2,J_. Accepted : EMPLOYER By : Tille: Attest: ________ _ Accepted : ICMA RETIREMENT CORPORATION By :----------- Tille : Corporate Secretary Attest: -------- MPP ,\dopucn Agreement 03 /2 5/1998 Page 8 or 8 • • • COUNC IL COMMUN ,CA TI ON Da te Age 11da It em Sub ject JJnuary i, 200 2 IQ C ii Reso lutio:1 adopting amendmen ts 10 ,he Ci ty oi Engl ewood Pol ice Ollkers 1'v\one y Pur chase Pla n D oc ument 1Plan l init iated By I Staff So ur ce Citv or Engle,,·oo d, Finance ,ind Admi 111 strati\ e Frank Gryglewlcz , Direc to r Ser, ices De partment CO UNC IL GOAL AN D PRE VIO US COUNC IL ACTIO N 1'\Jo previous ac ti on. RE COM MEN DED ACT ION Staif rec ommend s th e Ci ty Co un ci l approve th e atta ched resu lu1i on. BAC KGROUN D, ANA LYS IS, AND ALTERNA TI VES IDE NTIFIED Thi s resolu t!on is in res ponse to the En glewoo d Poli ce 6enefi t Ass ocia tion (EPBA ) co ntrac t "•rb 1tra rion provid in g a one percem C'rTi pl over contributi on increase fo r EPB ,'\ m embership. Th e EPB A rr.embe rship has reques ted th e empl m ee cont ribution be incr ease d bv one perc e nt The co ntrib uti on fo r empl oyer and emp loyee is to be nine perce nt. The Plan membersh i p consis ts of EPB,\ membe rs and Po lice mana ge ment staff. A vo te o i the Plan membership ap pro\ eel th e increases as o ( Ja nuar\ 1, :oo ~. FI NAN CI AL IMP ACT Bao;ed up on cu rr ent assti mp ti on the cos t will be aµproxi matelv 539,000 per vea r. LI ST OF ATTAC I-J MENTS Pro posed reso lu n .