HomeMy WebLinkAbout1998 Resolution No. 097•
RESOLUTION NO. i2.
SERIES OF 1998
A RESOLUTION A,',IENDING THE CITY OF ENGLEWOOD'S IOL-\ 401 .\fONEY
PURCHASE RETIREMENT PLAN FOR CITY OF ENGLEWOOD MSC. l!'.MPLOYEES .
WHEREAS , the City o( En1lewood baa e ■tabliahed an IC!',{A 40 1 Money Purcha1e
Retirement Pl8ll which b1nefita employees by providmg funds for recrement and funds for
their beneficiariH in the event o( death; and
WHEREAS . the Ci ty desires that its money purchase retirement ;,lan be administered by
the IC1'1A Retirem ent Corporation and that the fu nds held WJd er r"21 plan be invested m
the ICMA Retiremc, l Trus t, a trust established by public employe.-s for the collective
inves tment of fun ds held under their retire ment and deferred comp!!'.!l58tion pl ans ;
NOW , THEREFORE , BE IT RESOL VED BY THE CITY CO L');C'IL OF THE CITY OF
ENGLEWOOD, COLO RADO , THAT:
~-The City Council of the City of Englewood. Colora do bereby bas established
an ICl,,L-\. 401 Mon ey Purchase Retirement Plan {the "Plan") for }I..S C . Employees in the
form of the ICMA Reurement Corporatio n Proto type Money P urcha:se Plan and T rust,
pursuant to the s pecific prov1S1 ons of the Adoption Agn,emenL at.tamed hereto as Exhibit A.
~-The Pl an shall be maintained fo r the excl usi ve beneli: of eligible employees
and the ir beneficiari es .
SJ:J:tism...,'J . The City hereby executes the Declaratio n of Trust of-:bf IC~l-\ Re urement
Truat as part of the "Prototype ~1on ey Purchase Plan & Trust". 1nt2c::idi.ng this execu uon to
be operative with respect to any retu-ement or deferred compensauc::: plan subseq uentl}'
esL1blis hed by the City , if the assets of the Plan ar e ta be invesud c, the IC~L-1. Reurement
T r ust.
~. The City hereb y agrees to serve as trustee under the ?1ar.. and t0 invest fun ds
hel d under the Plan in the IOL-\ Retirement Trust .
~-The Directar of Financial Services fo r the City of E~,..OO<i. Co lorado s hall be
the coo rdinat or for the Plan : sha ll receive necessary reports. nonces-. etc., fro m th e IC~·lA
Reti rement Corp oratio n or the IC '.\1A Reu..remen t Trus t: shall cast. cc behalf on the City , any
reqw.red vo tes under the IC'.\L-\ Retirement Trust : may delegate ail'! .a dIIlllllStra ttve dunes
relaung to the Plan to ap pr op ria te depa rtm ents .
ADOPTED A'.'ID APPR OVED th.is 2nd day of November. 1&98 .
•--~-0.,,-bilMO••~-"' above ia a true copy of Re1olution No . .J:./Series of 1998. . · l(Jt
Loucrishia A. Ellis
•
•
•
•
ICMA RETIREMENT CORPORATION
PROTOTYPE MONEY PURCHASE PLAN & TRUST
ADO PTI ON AGREEMENT
#001
Account Number lll8JZ].
The Employer hereby establishes a MCl!lley Purchase Plan anl! Trust 10 be lcnown as __ _
CITY OF ENGLEWOOD :\-1.S.C. E.\fPLOYEES
(the 'Pla n ") in lhe form of lhe IC:';lA Reriremem Corpo ra tion Prococypc Money Purchase Plan
and Trus t.
Thi s Plan is an amendment and resia=eru of an existing defined contrib ution money purchase
plan .
~ Yes □ No
If yes, ple3se specify lhe name of the efined contri but ion mo ney purchase plan which this Plan
he re by amends and restates :
CITY OF E'.\'GLEWOOD '.\-1.S.C. D-IPLOYEES
I. Employer : CITY OF E~GLEWOOD. COLORADO
11 . Prococype Spons or :
Name : ICM...\ Re tirement Corpora tion
Addres s: 777 :,; Capi·o l S1ree1. N.E.
V.'ashcgto o. D.C. 20002--1240
Telephone Numbe r : (:?0 2) %:4600
ill. The Effective Dace of the P~ stull be the fir st day of lhe Pl an Ye 3f during which lhe
Empl oyer adopts the Plan . w:.less an 3.lternate Effective Dace is hereby speci fied : llillL8Z
IV . Plan Ye3f wi ll mean :
D The twe lve 11 2) consecuti ve month period which coinci de s with th e
lim itation yo:. (~ Sect io n 6.05 (i) of the Plan .)
0 Th e twe lve ( t :) consecuti ve month per iod comm m:ing on lllLll.l and each
anni vers ary cb.ereof.
V . Normal Ret irement Age sh.:Ll be ag e W (n0110 exceed age 65 ). *Effective as nf 111 /99
001 -94
•
•
•
VI. ELIGIBILITY REQUIREMENTS :
2 .
3.
The following group or groups of Employees are eligible to panicipare in the Plan:
__ All Employees
__ All Full-Time Employees
__ Salaried Employees
__ Non-union Employees
__ Management Employees
__ Public Safety Employees
__ General Employees
__x__ Other (specify below)
MID-MANAGERS, SUPERVISORS, & CONFIDENTIAL EMPLOYEES
The group specified must correspo nd to a group of the same designation cha! is
defined in the statutes, ordinances , rules , regulations, personal manuals or olher
material in effect in the state or locality of the Employer.
The Employer hereby waives or reduce s the requirement of a rwel vc ( ., ) month
Period of Service for panicipatinn . The required Period of Service shall be fil
(write Ni A if an Employee is di5ible 10 partic ipate upon employment).
If this wai ver or reducti on is electeC. it shall appl y to all Emp loyees within the
Covere d Empl oyment Cl ass ification .
A minimum age requirement is hereb y specified ior el igi1 -,!iry to pamr:i?ate. The
minimum age requirement is NIA (not tc exceed afc 21. Write ~:/A if no
minimum age is declared .)
VII . CONTRIBUTIO N PROVISIONS •Effective as of JIJ/99
I. The Empl oyer shall contri bute as fo ll ows (choose one. if applicable):
[El Fixed Emplo)·er Contributions With or Without Mandatory P2rticipant
Contributions .
001-94
The Employer shall contribute on behalf of each Pamcipant ...1...00 % of Ear-..ir,gs
or$ ___J) for the Pl an Year (s ubje ct to the lim itation.; of Artic le 'vl of di e Plan ).
Each Particip ant is required to co ntribute ....lJlll % of Earn ings or S __J) fo r the
Plan Year as a co nditi on of participation in th e Pl an. (Write ·o · if no cc,mributi m
is requir ed .) If Parti cipant Contributi ons are re quir ed und er this o ption. a
Parti cipa nt shall not have the right 10 disco ntinue or vary I.he rare c f such
contri buti ons aft er bec oming a Plan Part icipant .
2
The Employer hereby elects to "pick up" the Mandatorylr.equired Panicipant
Conml>ution .
Yes □ No
[Note 10 Employer: Neither •n opinion letter issued by the Internal
Revenue Service with respect to the Pro101ype Plan , nor a determination letter
issued tO an adopting Employer is a ruling by the Internal Revenue Service that
Participant contributions that are picked up by the Employer are not includable in
die 1'3rticipant's gross income for federal income tax purposes . The Employer
may seek such a ruling .
Picked up contributions are exc ludable fr om the Panicipant's gro ss income
!lilder section 414(h)(2) of the Internal Revenue Code of 1986 only if they meet the
r equ ire ments of Rev . Rul. 81-35 . 1981 -1 C.B. 255 . Those requirements are (I )
mat the Employer must sp~ify th at the contr ibuti ons . althou gh de signated as
empl . ee contributions. are be ing paid by the Empl oy er in lieu of contribut i0ns by
me ero.p loyee : and (2) the empl oyee mu st n01 ha ve the opti on of recei vin g the
contri buted amounts direc tly instead of havi ng them paid by the Emplo yer to the
plan.)
D Fixed Employer l atch of Panicipant Contributions.
•
The Empl oy er shall contribute on beh alf of each Panicipant _ % of Earnin~s for •
the Plan Year (subject to the limitati ons of Anicles V and VI of the Plan) fo r each
Plan Year that such Panicipant has contri buted_ % of Earnings or S_. Under
!his . li on. there is a single. fixed rate of Empl oye r contributions. but a Panicipart
may ·ecl ine to make the req uire.d Partici pant CJ ntributions in an y Plan Year. in
whic:1 cas e no Empl oy er co ntribut io n wi ll be ma de on the Panicipam's be hal f in
!hat Plan Year .
D Variable Employer :watch of Participant Contributions.
001-94
The Em pl oy er shall contrib ute on beh alf of eac h Panicipant an amount dete1 "'.l ined
as fo llo ws (s ubject to the limitati ons of Ani cles V and VI of the Plan ):
_ % of the Panici pant co nt ri buti ons made by the Panicipam for the Plan
Ye ar {not includ in g Panici pantcontributi ons exceed ing __ of Earnin gs or S _}:
PL US_% of the co ntribut ion; mJd e by the Panicip ant fo r the Pl an Year
in e~~ess of th os e incl uded in the ab ove pa ragraph (but not including Pan icipa nt
conrribmio ns excee din g in the agg regate _ % of Earnin gs or S _).
Em ployer Co ntributio ns on beh~lf of a Pan icipa nt fo r a Pla n Year shall no t
exre-:d S _or _% of Ea rnin gs. whichever is O more or D less . •
•
•
•
2, Each Participant may make voh1Dwy (unmat.cball. after-ta., contribution, subject
to the limitations of Section 4 .0S and Anicles and VI of the Pllln.
0 Yes 00 No
3. Employer contributions and Participant comrillllriom shall be contributed to the
Trust in accordance with the following paymet11 scl~e:
PER PAY PERJOD
VIll. EARNL'IGS
IX .
Elmings, as defined under s~ tion 2.09 of the Plan. slwl include :
(a) Overtime
D Yes [El No
(b ) Bonuses
D Yes [El :-l o
LIMITATION ON ALLOCATIONS
If the Employer (i ) maintains or ever maintained an<Mh~r qua lified plan in which an y
Participant in this Plan is (or was ) a parti ci pant or cow d possibly bec ome ~ participant .
and/or (ii) maintains a welfare benefit fund (as defined m sectio n 419(e) of 11,e Code) or
an individual medical acc ount (as defined in section -U5(1)(-l oft~~ Cod e. 1mder whi ch
amounts are treated as Annual Audit io ns with respect to any Part icipant in this Plan) the
Empl oyer hereby agrees to limit co ntr ibutions to all suc h plans as pro vicL:a herein . if
necess ary in order co :;void ex cess ,ontributions (as described in Sections 6 .03 and 6.04
of the Pl an).
I. If the Participant is covered under anothe r qualified defined contribution plan
maintained by the Empl oyer. other tha n a Regi onal Prototyp e Plan . the provis ions
of Section 6 .02 (a) thr ough (f) of the Plan will ap ply as if th e other plan were a
Master Prot oty pe Plan . unl ess another meth od has been indica ted below .
D Other Method . (Prov ide the method under whtch the pla ns will limi t total
Annual Ad diti ons co the Maximum Pernu.s sibl e .-\m ouct , and will prope rly
reduce ~ny exc ess amou nts , in a mann:r that preclude s Empl oyer
disc reti on.)
001 -94
4
2. If the Participant is or bas ever been a pvticipant in a defined benefit plan
maintained ~y the Employer. and if the liinitation in Section 6.04 of the Plan would
be e:1ceeded, then the Participant's Projected Annual Benefit under the defined
benefit plan shall be reduced in accordance witll the tenns thereof 10 the extent
necessary to satisfy such limitation . If such plan does not provide for such
reduction, or if the limi r~cion is still exceeded afte r •he reduction, annual additions
shall be reduced ,o the extent necessary in the manner described in Sections 6.01
through 6.03 . The methods of avoiding the limitatio n described in this paragraph
will not apply if the Employer indic ates another method below.
□ Other Method. (Note to Employer: Provide below language which will
satisfy the 1.0 limitati on of section 415(e) of the Corle . Such language must
preclude Emplo yer disc retion. See section 1.415-1 o' the Regulations for
guidance .)
3. The limitation year is the following 12-co nsecu ii ve month period:
X. VESTING PROVISIO NS *Effective as of l/1/99
The Emplo yer hereby specifies the following ·1esting schedule. subject to (I) the minimum
vesting requirements as noted and (2) thP. ,o~currence of the Plan Administrator .
Years of Spe cified Minimum
Servic e Percent Vesting
~ ~ ReQuiremems ••
Zero _Q_ % No minimum
One _Q_ % No minimum
Two -2..L % No minimum
Three __...ID__ % No t less than 20 %
Four _li_ % N 01 les s than 40 %
Five .....lQQ_ "" " Not le ss than 60 %
Six .....lQQ_ % Not le ss than 80 %
Se ven . or more __100_ % Must eq ual 100 %
(••These minimu1J1 ves ting requirements co nform to the Code's three to seve n year ve s ... i,;
schedule . If the employee become s 100 % ve sted by the completi on of f ve yea rs of
ser vic e. the re is no minimum for years three and four.)
Xl. Lo~ns are pem1itted under tr.e Pla n. as provided in Arti cl e XI V:
Ye s □ No
001-94
5
•
•
•
XII . The Employer hereby a!ICSIS llba! it is a unit of state or l1>eal government or an agency or
Instrumentality of one or IDll!l'l: units of state or local go 1emment .
XIII. The Prototype Sponsor hereby 3grees to inform the Employer of any amendments to the
Plan made pursuant to Sectioc 15 .05 of the Plan or of the discontinull!ce or abandonment
of the Plan .
XIV . The Employer hereby appoims the Prototype Sponsor as the Plan Administrator pursuant
to the tenns and conditions of die ICMA RETIREMENT CORPORATION PROTOTYPE
MONEY PURCHASE Pl.AJ.'-i & TRUST .
XV.
XVI .
The Employer hereb y agrees to the provisions of the Plan and ·, rust .
The Employer hereby ac knolo-ledg es it understands that failure to prope rl y fill out thi s
Adoption Agreement may resolt in disqualification of the Plan .
An adopting Employer may oot re ly on a notification letter iss ued by the National or
District Office of the Internal ~venue Servic e as evidence that the Plan is qualified unde r
sec ti on 401 of the Internal Re ,,enue Code . In order to obtai n reliance with respect to plan
qualificatio n. the Employer cnust apply to the appropriate ke y distri ct office fo r a
de termi nation lener.
This Adoption Agreement auy be used onl y in co njunctio n with basic Pl an document
number 001.
In Witne ss Whereo f, the Empl oyer bGeby caus es this Agreement to be execute d on
this ________ day of _________ . 19_ .
EMPLOYER
By: ________ _
Title : _________ _
Ane st: _________ _
. .\cc epted : ICMA RETIREM ENT CORPORATIO N
By:-----------
Title : Corpo rate Secretary
. .\nest: _________ _
• ICMA Retiremem Corporation □ P.O. &1 96 •• D W3.1hin g1o a. DC D 20090 -6220 □ 1-800-326-72 72
001-94
•
•
•
COUNCIL COMMUNICATION
Data Agenda Item Subject A retdution to amend
the City o1 Ef191ewood's ICMA-
AC Money Purd'lase Plan for
November 2, 1998 10 C ii MSC Employees
Initiated By
Department of Fi nanc ial Services
I Staff Source
Frank Gryglewicz, Director of Finllnc:ial Services
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
The City Council met on September 21, 1998 to discuss this topic, and has made the City's total
benef it strat ~gy a priority to attract and retain quality employees . The ICMA Money Purchase Plan is
an integral co mponent of the City's benefit package that prov ides for employees to direct the
investment of City's pens ion contribution for the ir retirement.
RECOMMENDED ACTION
Staff recommends the City Council approved the attached resolution.
BACKGROUND , ANALYSIS , AND ALTERNATIVES IDENTIFIED
This resolution allows the Direc tor of Financia l Services to execute all necessary agreements with the
ICMA Retirement Corporation required to administer the Plan. The MSC Plan is being amended to
change the vest in g period, lower the normal retirement age to 60, and require an employee
contribution (three percent ).
FINANCIAL IMPACT
Th is ac ti on will •101 have an impact on the City's financial condition
LIST OF ATTACHMENTS
Proposed resolution