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Home My WebLink About1998 Resolution No. 053• • • RESOLUTION NO. _8 SERIES OF 1998 A RESOLUTION IN WHICH THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO HEREBY CASTS ns EMPLOYER'S VOTE IN FAVOR OF F.P.P A.'S PROPOSED AMENDMENTS NO. 1, NO. 4 AND NO. 6, AND AGAIN.:T F .P .P.A.'S PROPOSED AMENDMENTS :SO. 2 AND NO. 3. WHEREAS, pursuant to C.JLS. 31 -31408 end F.P .P .A. Rule 704 the Board of Directors of the Fire end Police Penewm A.sal.>ciation ("Board") have proposed certain modifications to the pension benefits end age and ,oervice requirements for pension benefits set forth in Part 4. Article 31. Title 31 C.R.S ., u 11:mended . with res pec t to t he members of the Statewide Defined Benefit Plan ("the Plan and WHEREAS . the propoeed mo<f:::fu:e tions to the Plan ere 11et fo rth in the Board's Resolution No. 98-2, adopted by l!fue Board on February 25, 1998; end WHEREAS . F .P.P.A. Rule 7().LQ2 (b) r equi r es that. prior to en election by employers e nd members on any prop, ,d modifc:>.tion to the Plan, the BoBrd s hell provide employers with a certification that th ,ropooed mrodi.ficati ona comply wi!h the requirements set forth in Section 31-31-408, Co,oredo Rnued Statutes, es emended ; and WHEREAS, the Englewood ID.iUl bers of F .P .P _o\._ held en election and have voted in favor ofF.P.P.A.'s proposed Am e dme,:.ts No .!, '.-lo . 4 end No. f,, a nd against F .P .P.A .'s proposed Amendments o . 2 amd • o. 3; an<l WHEREAS , F.P.P .A.'s propoaied Am endment I · "Pop Up Provision ," with a cost as percentage of payroll of 0%, ..-aa!l::! add options which would allow the retire.: member wh o hes selecte.d the joint & s urvmr cap tion wi th red uced be nefits , to "pop up" or revert to an unreduced benefit if the benefic=:r dies befor e the me mber dies; end WHEREAS . F .P.P.A.'s pr,po,..•d Amendment 2 • "Five Year Vesting," with a cos t as percentage of pa yroll of 0 .04%, w :,uid red uce the curre nt 10 year vesting require ment to 5 yea rs: and WHEREAS, F.P.P .A.'s propol!'<'d Amendment 3 • "Addi tio n al Yea rs for 2% Per Year Ber,e fi t Accrual ," with a C06t es ~,erce ntage of payroll of 1.8 1 %, wo uld ch ang e the acc rual of bene fi ts in the foll owing manner The current mn..umum retireme nt be nefit that can be acc rued prior to age 55 is 5()0;, af the ave rage of the member's three hjghest yea rs' base sa lary . Afte r reachmg age 55 a.ad bavmg 25 years of service , th e curre nt plan prov ides an addh 1onal 2% pe r year of ser,,ce-up to a maximum ber.e fit of 70%. This ame ndme nt would give a be ne fit of 2% for each yen.: of sen,ce. up to a ma xi mu m retir ement be nefit of i 4%: and WHEREAS , F .P.P.A.'s propoosed Am en dme nt 4 • "Choice of J oint & S urvivor Option Upon S ubseque nt Marriage.~ wr...!l a cos t as pe rce nt.age of pay roll of 0%, wo uld extend the joi nt and survivor opti on choice t.:i a me mber who becomes marri e d afte r retirin g; and WHEREAS . F.P.P.A.'s propc...,d Am en dme nt 5 • Deferred Retirement Option Plan (DR OP), with a cost as pl,.rcen~e of payroll of 0%, would add a new, optional benefit lO the curren t rettre ru e nt pl an : NOW , THEREFORE , BE IT RESOLVED BY THE CITY COU NCIL OF Tm: ClTf OF ENGLEWOOD , COLORADO , THAT : SutiwL.l . The City Council of the City of En1lewood , Col~:ado hereby ,._ Ila •mployer'a voto in favor of F.P.P .A.'a propoeed Amendmenta No . I, 'No. 4 and No. I , and againat F .P.P.A.'a proposed Amendment& No . 2 and No . 3. ADOPTED AND APPROVED thia 4th day of May , 1998. ~(!!Ji' ~ City Clerk I, Loucrishia A. Ellis , City Clerk foJ:.J-11 • City of Englewood , Colorado, hereby cenify the .~ .. ;, • """ ~· -~-·--· N"'1 , ..... ~ d /4 Loucri slua A. Blhs .. • • • Date Mlil y 4 , 1998 Initiated a-, COUNCIL COMMUNICATION Ajlendaltem 10 c I Staff Source Subject A resolution casting the City of Englewood's vote as employer regardi~g Fire and Police Pension Association (FPPA) proposed amendments Department of Financial Services Frank Gryglewlcz, Director COUNCIL GOAL ANO PREVIOUS COUNCIL ACTION The City C-.ouncil has not acted on this particular feature In the past, but has studied the Issue of a deferred relilnement option plan (DROP) for the City's non-emergency, old-h ire ~olice and old-hire fire employees . RECOMMENDED ACTION Staff recomrrenc!s the City Council cast Its vote regarding proposed amendments to the Statewide Defined Berreflt Plan as outl ined below. The vote must be cert ifi ed to FPPA by May 18, 1998. • BACKGROQIID , ANALYSIS , AND ALTERNATIVES IDENTIFIED • The FPPA hes submitted to its active pla n membe rs five prop osed amen ri ments to the Statewide Defined Benefit Plan. An election has been he ld to de term ine whether any or all of the proposed amendme nts will be adopted In order /or any amendment to be adopted, an amendment must be approved b .an affi rma tive ,,:,t p of 65 % of the active plan members , and more than 50 % of the ir employers . Each proposal was vot ed on se par ,te ly. The amendr.ents and results of the employee vote on each is '.S lollows : Amendment 1: "Pop Up " Provision -Cost as a per perc entage of pay roll : 0%. Th is amendment would add cotions which wo uld allow the retired membe r who ha s selected the jo int & survivor option reduced be rnef lts o "pop up " or revert to an unreduced benefit if the beneficiary dies before the member dies. Em ployee vo te: In favor : 39 Aga ins t: 3 Amend ment 2 : Five Year Vesting -Cost as a pe r percentag e of payroll : 0.04 %. This amendment reduces th,; :urre t 10 year vesting req uirement to fi ve years . Empl oyee vote : In fav or: 15 Aga inst: 27 Amendment 3: Addltlonal Year i tor 2'll. Per v .. a.-Acorut' -Cost P.3 a per percentage of payroll : 1.81 % The current maximum retirement benefill !lhat can be accruGd prior to age 55 Is 50% of the average of the member's threii highest years' base salary . After reach ing age 55 and ha,ing 25 years of service , the current plan provides an additional 2% per year of s.irvice, up to a max imu m benefit of 70%. This amendment would give a 2% bend for nch year of service , up to a maximum retirement benefit of 74%. Employee vote: In favor. 15" Agai n~t 27 Amendment 4: Choice of Joint & Survivor Option Upon Subaequent Marriage -Cost as a per percentage of payroll : 0%. This amendment would extel!1ld the joint and survivor option choice to a member who marries after retiring . Empk;tee vote : In ta.or: 37 Against: 5 Amendment 5: Deferred Retirement Option Plan (DROP) -Cost as a ~er percentage of payroll: 0%. Th is amendment would add a new optlonal benefit to 1tre -current retiremenr plan. Employee vote : In favor : 37 Aga inst: 5 The City Council has the option of voting as the employees have or voting in favor or against any of the proposed amendments . FINANCIAL IMPACT Th is action does not directly impact the City's fin ancial con dit ion because the cost is absorbed by each plan member's Separate Retirement Account (SAAi-QurrenUy, both the employee and the City · contribute 8% toward the Statewide Defined Benefil Plan Contributions not required to fund the actuari ally determined cost of the Stateside Defined Betmefit Plan are place in the members ' SRAs . In 1997 , the am ount of employer contribution& place in ead1 member's SRA was 6.5 %, and in the past • has ranged fr om 4 .5'i, to 6.5%. Future amou nts wil be• l>duced to pay for any costs associated with th e proposec amendments that pass . LIST OF ATTACHMENTS Proposed resolution •