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HomeMy WebLinkAbout2001 Resolution No. 041• RESOLUTI1)N NO . 't/ SERIES OF 2001 A RESOLU'l'ION AUTHORIZING THE ICMA RETIREMENT CORPORATION GOVERNMENTAL MONEY PURCHASE PLAN & TRUST ADOPTION AGREEMENT. WHEREAS, the Englewood City Council made changes to the NonEmergency Retirement Plan allowing optional participation in the Definml Benefit Pension Plan or the Monoy Purchase Plan with the passage of Council Bill No . 17, Series 2001 ; sod WHEREAS, the City desires to change the ICMA-RC Mid-Mansger, Supervisor and Confidential 401a Plan to allow Non-Ex empt, Non-Emergency full-time personnel the option of participating in either the Defined Benefit Plan or the Money Purchase Plan; and WHEREAS, the passage of this Resolution amends the existing ICMA-RC Mid-Manager, Supervisor and Confidential 401a Plan to permit Non-Exempt, Non-Emergency personnel to join the Plan and renames Iha Plan the NonEmergency Employees Money Purchase Plan; WHEREAS, the City desires that its NonEmergency Employees Mace~ Purchase Plan be administered by the ICMA Retirement Corporation and that the funds held under such Plan be invested in the ICMA Retirement Trust, a trust established by public employers for the collective investment of funds held under their retirement and deferred compensation plans; WHEREAS, the Englewood Non-Emergency Employees Retiremeut Board passed the adopted changes to the Plan at their March 20, 2001, meeting; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO . THAT: ~ .:... The City Council of the City of Englewood, Colorado hereby authorizes the "ICMA Ret:rement Corporation Governmental Money Purchase Plan & Trust Adoption Agreement", a copy of which is marked as "Exhibit A" and attached hereto. 5i:i:ti!m.. •,. The Director of Finance sod Administrative Services and City Clerk ara hereby authorized ·.o sign and attest said the "ICMA Retirement Corporation Governmental Money Purchase Plan & Trust Adoption Agreement" on behalf of the City of Englewood. ADOPTED AND APPROVED this 7th of May. 2001. • • • I, Loucriahio A. Ellia, City Clerk for ,If/• City of Englewood, Co •hove is a true copy of Resolution No .!11-, Series cf 2001 . • • COUNCIL COMMUNICATION Date Agenda Item Subject Resolution making changes to the May 7, 2001 lOci City of Englewood's MSC Money . Purchase Plan Initiated By I Staff Source Department of Finan ce and Administrative Services Frank GrvRlewicz, Director COUNCIL GOAL AND PREVIOUS COUNCIL ACTION The Non-Emergency Employees Retirement Board passed a motion to recomme,, d the City Council adopted changes to the Plan. RECOMMENDED ACTION Te e Non-Emergency Employees Retirement Board and Staff recommend City Council approve this rbolution making changes to the ICMA-RC Mid -Manager, Superv1sor, and Confidential 401 a Plan that allows the non-exempt non-emergency ful~time personnel the option of participating in either the defined benefit or the money purchase plan . The Plan will be renamed as the Non Emergency Employees Money Purchase Plan . BACKGROUND INFORMATION The City Council passed an ordinance to make changes to the NonEmergen::y Empk-vees Retirement Plan that provide a one-time option for non-emergency employees to choose between the defined benefit pension or the mone y purchase plan . The resolution amends the existing ICMA-RC Mid-Manager, Supervisor, and Confidential 401 a Plan to pennit non-exempt non-emergency personnel to join the plan and renames the Plan to NonEmerge11cy Employees Money Purchase Plan. FINANCIAL IMPACT Thi s ;.ction wi ll not have an impact on the City's financial condition. LIST OF ATTACHMENTS Propose d resolution . • ~ ICMA RETIREMENT CORPORATION The Public service Vantag~point since 1972 • MPP Adop r!on Agreement 03/25/1998 Page 1 cfS • ICMA RETIREMENT CORPORATION GOVERNMENTAL MONEY PURCHASE PLAN & TRUST ADOPTION AGREEMENT Account Number: ill!!! The Employer hereby establishes a Money Purchas Plan and Trust to be known as the "Plan; in the form of the ICMA Retirement Corporation Prototype Money Purchase Plan and Trust. CITY OF ENGLEWOOD, CO. This Plan is an amendment and restatement of an existing defined contribution money purchase plan . Yes No If yes, please specify the name of the defined contrib•Jtion money purchase plan which this Plan hereby amends and restates : NON-~CY H,NEY PURCHASE PLAN Summary of Changes : Effective Date of These Changes: Eligibility requirements amended . May 21, 2001. I. Employer: CITY OF !NGLEWOOO, COLOIIADO II . The Effective Date of the Plan shall be the first day ot the Plan Year during which the Employer adopts the Plan, unless an alternate Effective Date is htcreby specified : 12/21/1987 Ill. Plan Year will mean: (_) The twelve (12) consecutive month period which coincides with the lim~ation year . (See Section 5.04(i) of th'! Plan .) (!) The twelve (12) consecutive month period commencing on 01/01 and each anniversary thereof. l\i Normal Retirement Age shall be age~ (not to exceed age 65) . MPP Adopti on Agreement 03125 /1998 Page2of8 l<;Mf\ RETJREMEN1i .CORPOAATION GOVERNMENTAL MONEY PURCHASE Pl,AN1& TRUST ADOPTION AGREEMENT Account Number : 108371 The Employer hereby establishes a Money Purchase Plan and Trust to be known as the "Plan '') in the form of the ICMA Retirement Corporation Prototype Muney Purchase Plan and Trust. CirY OF ENGLEWOOD , CO . This Plan is an amendment and restatement of an existing defined contribution money purchase plan . Yes No If yes , please specify the name of the defined contribution money purchase plan wh ich this Plan hereby amends and restates : NON-EMERGENCY NlNEY PURCHASE l'LAH Summary of Changes: Effective Oate of These Changes : Eligibility requirements amended. , May 12, 2001. I. Employer : CITY OF ENGLEWOOD, COLORADO II . The Effective Date of the Plan shall be the first day of the Plan Year du ri ng which the Employer adopts the Plan, unless an alternate Effective Date is hereby specified : 12/21/1987 Ill. Plan Year will mean : (_) The twelve (12) consecutive month pe ri od wh ich co incides with the limitation year. (See Sect ion 5.04(i) of the Plan .) (~) The twelve (12) consecut ive month period co mmenc ing on Ol/Ol and each anniversary thereof. IV . Normal Fl etirement Age shall be age~ (not to exceed age 65 ). MPP Adoption Agreement 03 /25/199 8 Page2of8 • • • • ELIGIBILITY REQUIREMENTS : 1. The following group or groups of Employees are elig ible to participate in the Plan:' All Employees All Full Employees Salaried Employees Non-Union Employees Management Employees Public Safety Employees General Employees ! Other (specify below) MID-Ml\NAGERS, SUPERVISORS , CONl'IDEN'l'IALS & NON-EXEMPT NON EMERGENCY EMPLOYEES . The group specified must correspond to a group of the same designation that is defined in the statutes, ordinances , rules , regulations , personnel manuals or other material in effect in the state or locality of the Employer. *SEE ATTACHMENT 2. The Employer hereby waives or reduces the requirement of a twelve (12) month Period of Service for participation. The requ ired Period of Service shall be N/A (write NIA if an Employee is eligible to participate upon employment). If this waiver or reduction is elected, it shall apply to all Employees with in the Covered Employment Classification. 3. A minimum age requirement is hereby specified for eligibility to participate . The minimum age requirement is N/A (not to exceed age 21 . Write NIA if no minimum age is declared.) VI. CONTRIBUTION PROVISIONS 1. The Employer sha li :ontribute as follows (choose one): Fixed Employer Contributions With Or Without Mandatory Participant Contributions . The Employer shall contribute on behalf of each Par ticipant 7 . oo % of Earnings or$ _____ for \ne Plan Year (subject to the lim itations of Article V of the Plan). Each Participant is required to contribute 1:..£2..__ % of Earnings or S _____ for the Plan Year as a MPP Adop tion Agreement 03/2 5/1998 Page 3 of 8 condition of participation In the Plan . (l(vrite •o• if no contribution is required .) If Participant Contributions are required under this option, a Participant shall not have the • q right to discontinue or vary the rate of such contributions • after becoming a Plan Participant. The Employer hereby elects to "pie:: up" the Mandatory/Requ ired Participant Contribution . Yes No [Nole to Employer: A determination letter issued to an adopting Employer is not a ruling by the Internal Revenue Service that Participant ccntributions that are picked up by the Employer are not includab :e in the Participant's gross Income for federal income tax purposes . The Employer may seek such a ruling . Picked up contributions are excludable from the Participant's gross income under sec lion 414(h)(2) of the Internal Revenue Code of 1986 only if they meet the requirements of Rev. Rul. 811981C.B . 255 . Those requirements are (1) that the Employer must specify that the contributions , although desig nated as employee contributions, are being paid by the Empl iyer in lieu of contribu lions by the employee ; and (2) th ~ ,:;rnployee must not have the option of recei~ing the ,.;ont,ibuted amounts directly instead of having :hem paid by the Employer to the plan .] (_) Fixed Employer Match of Participant Contributions . The ':mployer shall contribute on behalf of each Participant % of Earnings for the Plan Year (subject to the limitations of Article V of the Plan) for each Plan Year that such Participant has contributed __ _ % of Earnings or S . Under Iris option, there is a single, fixed rate of Employer contributions , but a Participant may decline to make the required Partic ipam contributions in any Plan Year , in which case no Employer contribution will be made on the Participant's behalf in that Plan Year . MPP Adoption Agreement 03/25/1998 Page 4 of B • • • • • 2. (_) Variable Emplo~•r Match Of Participant '\, Contributions. The Empro,er shall contribute on behalf of each Partldpant an amount determined as follows (subject to the !Imitations of Article V•of the Plan): % of the contributions made by the Participant for the Pl ;in Year (not including Participant contributions exceeding ___ % of Earnings or$ ____ ); PLUS % of the contributions made by the Participant for the Plan Year in excess of those included in the above paragraph (but not including Participant contributions exceeding in the aggregate ___ % of Earnings or$ _____ ). Employer Contributions on behalf of a Participant for a Plan Year shall not exceed S _____ or % of Eam !ngs , whichever is_ more or_ less . Each Participant may make a voluntary (unmatched), after-tax contribution , subject to the limitations of Section 4 .05 and Article V of the Plan . Yes No 3. Employer contributions and Participant contributions shall be contributed to the Trust in accordance with the following payment schedule: PER PAY PERIOD VII. EARNINGS Earnings, as defined un Jer Section 2.09 of the Plan , shall include: (a) Overtime Yes ~ No (b) Bonuses Yes ~ No MPP Adoption Agreement 03/25/1998 Page5of8 VIII. LIMITA'JilON ON ALLQOAT,IQNS If the Employer maintains or ever maintained another qualified plan in which any Participant in this Plan is (or was) a participant or could possibly become a partlclpant, the Employer hereby agrees to limit contributions to all such plans as provided herein, if necessary in order to avoid excess contributions (as described in Sections 5.02 and 5.03 of the Plan). 1. If the Participan_t is covered under another qualified defined contribution plan maintained by the Employer, the provisions of Section 5.02(a) through (f) of the Plan will apply unless another method has been indicated below. 2. (_) Other Method. (Provide the method under which the plans will limit total Annual Additions to the Maximum Penmissible Amount, and will properly reduce any excess amounts, in a manner that precludes Employer discretion .) If the Participant is or has ever been a particip .1nt in a defined benefit plan maintained by the Employer, and if the limitation in Section 5.03 of the Plan would be exceeded , then the Participant's Projected Annual Benefit under the defined benefit plan shall be reduced in accordance with the tenms thereof to the extent necessary to satisfy such limitation . If such plan does not provide for such reduction, or if the limitation is still exceeded after the reduction , annual additions shall be reduced to the extent nee essary in the manner described in Sections 5.02 and 5.02. The methods of avoiding the limitation described in this paragraph will not apply if the Employer indicates another method below . (_) Other Method. (Note to Employe r: Provide below language which will satisfy the 1.0 lim itation of section 415(e) of the Code . Such language must preclude Employer discretion . See section 1.41 Sof the Regulations for guidance .) 3. The limitation year is the following 12 month period : __ MPP Adopllon Agreement 03/25/1998 Page 6 of 8 • • • • IX. VESTING AROVISIGNS , ri ' The Employer hereby apeclfln ,the following vesting schedule, subject to (1) 4 " the minimum vesting requirements II noted and (2) the concurrence of the Plan Administrator . Years of Service Percent Com~leted Vealing_ I ' II Zero 0.00 % One ~ % Two ~ % Three 50 .00 % Four ~ % Five ~ % Six ~% Seven ~% Eight 100.00 % " Nine 100.00 % Ten ~% X. Loans are permitted under the Plan, as provided in Article XIII: Yes No XI. The Employer hereby attests that it is a unit of state or local government or an agency or instrumentality of one or more units of state or local government. XII. The Plan Administrator hereby agrees to inform the Employer of any amendments to the Plan made pursuant to Section 14 .05 of the Plan or of the discontinuance or abandonment of the Plan . XIII. The Employer hereby appoints the ICMA Retirement Corporation as the Plan Administrator pursuant to the terms and conditions of the ICMA RETIREMENT CORPORATION GOVERNMENTAL MONEY PURCHASE PLAN & TRUST . The Employer hereby agrees to the provisions of the Plan and Trust . XIV. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption Agreement may result in disqualification of the Plan . MPP Adoption Agreement 03/25 /19 98 Page 7 of e 1' An ldoptfng Employer may not rely on I deleiml~ Jetttir°l;Mlld by ttlii National or District Office of the Internal Revenue Service as evtd!tnce that the Plan il•quallfied under NC!lon 401 of the Internal Revenu. Cod• Ir! order to obtain reliance with respect to plan quallflcation, the' Employer ml.lat apply to the appropriate key district office for a determinat1on·-.,i11-•'' , 1 y 901 In Witness Whereof, the Employer heraby causes this Agreement to be executed on this __ day of ______ ,, 20_. Accepted: EMPLOYER By : Frank Geyglewicz Title : Director of Finance & J!dninistrative Services Attest: _________ _ Ioucri.ahi.a A. Ellis City Clerk MPP Adop ti,,n Agreement 03125/1998 0 I Accepted : ICMA RETl~NTCORPORATION By :--------- Title : Corporate Secretary Attest _________ _ .I. Page 8 ol 8 • • • ICMA RETIREMENT CORPORATION GOVERNMENTAL MONEY PURCHASE PLAN & TRUST ADOPTION AGREEMENT #001 ATTACHMENT .• V. ELIGBILITY REQUIREMENTS: Effective fla ~. ·· ___ _ The plan will be available to all new hires employees as of May 21, ~uu1. Employees hired on or after May 21 , 2001 will have the choice to participate in the 401(A) or the old defined benefit plan . The plan will become available to current employees on July 30, 2001 .