HomeMy WebLinkAbout1998 Resolution No. 098•
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RESOU.:TION No .'f/
SERIES OP 1998
A RESOLUTION A.\1ENDING THE CITY OF ENGLEWOOD'S ICMA 401 MONEY
PURCHASE RETIREMENT PLAN FOR CITY OF ENGLEWOOD MANAGEMENT STAFF.
WHEREAS, the City of Englewood has established an ICMA ~01 Money Purchase
Retinlllle!lt Plan which ~nefit! employees by providing funds for retirement and funds for
thou-0f'-'leficaries in the event of death; and
\\liE3.EAS, the City desires that its money purchase retirement plan be administered by
the IC'A-. Renrement Corporation and that the funds held under •uch plan be invested in
the !OJ.A Retirement Trust. • trust established by public employers fo r the collecttve
in,·est==t of funds held under their retirement and deferred compensatio n plans ;
'·ow TiiEREFORE . BE [T RE SO LVED BY THE CITY COUNC IL OF THE CITY OF
D IGUYiOOD, COLORADO , THAT:
~-The City Council of the City of Englewood, Co lorado he ·e by has astablished
an [0,L -IOI ~!oney Purchase Retirement Plan (the "Plan") for Manap ment Staff in the
for:n af6" IC~U Retirement Corporauon Prototype :Vlon ey Purchase Plan and Trust,
pu.rsua.=:t to the specific provisions of the Adoption Agreem ent. attached hereto as E.chib1t A.
~-The Plan shall be maintained for the excl usive benefit of eligible employees
and tllu beneficiaries .
S=.]. The C1ty he r eby executes the Declaratio n of Trus t of the IC:VU Retirement
Trust as ?a."t of the "Prototype :Vloney Purchase Plan & Trust", intending this execuuon to
be opera-=-e ~'1th respect to any re tire ment or deferred compensation pli.in subsequently
establah:-~ by the City, if the assets of the Pla n are to be invested in the IC1'L-\. Retirem en t
Trust.
~. The City hereby agrees to serve as trustee under the Pinn and to ln\'eS t funds
held um!,,:-the Plan m the IC!\,U Retu-ement Trus t.
~-The Director of Financial Services for the City of Englewoo d . Col orado shall be
the coo rn::=tor fo r the Pla n ; shall receive necessary repo r ts , notices , etc., from the IC!\<L-\
F...enre m~ Corpo ranon or the ICi\L.\ Retirement Trust: shall cast, on behalf on the City , a ny
re qwreC. T"":Jtes ur.der the IC ~t.\ Ret1rement Trust: may delegate any administratl\'e duties
relan:1g i:::i the Plan to appropriate departments.
AJiOPTED A);D APPRO\ "ED this 2nd day of >iove mb er. 1998 .
1. Loucrilhia A. Ellis , City Clerk fo~ City cf EApowood.
above ia a true copy of Resolution No.';I_, Seri.,. d 1998.
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ICMA RETIREMENT CORPORATION
PR OTOTYPE MONEY PURCHASE PLAN & TRUST
ADOPTION AGREEMENT
#001
Account Number .1J11J6!
The Employer hereby establ is hes a Money Purchase Plan and Trust to be known as ___ _
CITY OF ENGLEWOOD MANAGEMENT STAFF
(the "Plan") in the fonn of the ICM A Retireme nt Co rporat ion Prototype Money Purchase Plan
and Trust .
Thi s Plan is an amendment and resta tement of an existi ng defi ned contr ibuti on money purchase
plan .
[R] Yes D No
If yes . please ~pecify the name of the defi ned co ntrib utio n mone y purchase plan which this Plan
hereb y amends and res tate s:
CITY OF ENGLEWOOD :\-IA.'iA GEME:\'T STAFF
I. Empl oyer : ~C_IT_Y~O_F_E_:-.~·G~L=E~W_O~O~D~-----------
Il. Pro totype Sp onso r:
Name : IC~I A Retirement Corporation
Address : 7i7 N. Ca pit ol Stree t. N.E.
Washingto n. D.C. 20002-C40
Tele pho ne Number : (202 ) 962-16 00
III. The Effective Da te of the Pl an shall be the first day of the Plan Year du ring whic h the
Employ er ad opts the Pla n. unless an alternate Effective Date is he reby specified: lllLll.lL8!i
fV . Plan Year will mean :
D The twelve (12 ) consecutive mont h period whic h co inci des with the
lim itatio n year . (See Section 6.05 (i) of th e Plan.)
00 The twelve (12 ) consecuti ve month period commencir.g en ll.J.Llll and eac!i
anniversary thereof .
V. Normal Retirement Age shall be age @.il (no t to exceed ag e 65 ). *Effecti vE 111199
001-94
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VI. ELIGWll.ITY REQ{llREMENTS :
I.
2 .
3.
Toe foll ing group or groups of Employees arc eligible to panicipatc in the Plan:
__ AfJ 'Employees
--~ Full-Time Employees
__ Salaried Employees
___ N11runion Employees
__ M:.anagemeru Employees
__ Pablic Safety Employees
__ General Employees
_x._ Omer (specify below)
~l.\.. 'IAGE:"fE:•,n· STAFF
The grou,, speci fied must correspond to a group of the same designation that is
defined iD the starutes, ordinances, rules , regulations. personal manuals or ocher
material CD effect in the state or loc11ity of the Employer .
The Empfloyer hereby waives or reduces the requirement of a twel ve (12) month
Period of Service for participation. The required Period of Service shall be ~
(write Ni. if an Employee is eligible 10 panicipate upon employment).
lf th is w.uver or redu ction is elected. it shall apply 10 all Employees within the
Covered Employment Clas sifica ti on.
A minimu::n age requirement is hereby specified fo r eligibility to panic ipa te . The
minimum .age requirement is ~ (not to exceed age 21. Write N/ A if no
minimum .age is declared .)
vn . CONTRIBCTIO . -PROVlSIONS •Effective 1/1/99
I. The Emp ! ;er shall contribute as follows (c hoose one. if app li cab le ):
00 FL--ced Employer Contnlmtions Wit h or 'Without Mandatory Participant
Contributions .
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The Emp lo-y er shall co ntr ibute on behalf of e3ch Pani cip ant ...llWl!l % of Earnings
or S __J) :'or the Plan Year (subje ct to the limitations of Anicle VI of the Plan ).
Each Pamcipant is requ ired to co ntr ibu te ....6Jlll % of Earnings or S __J) fo r the
Plan Year Jes a condition of panicipati on in the Plan . (Wri te "0" if no co ntributim
is requ ire <:'.) If Panicipant Contr ibuti ons are required unde r thi s op tion , a
Pan ic ipanr shall not have the right to discontinue or vary the rate of such
contributiocs after becoming a Pl an Panicipant.
The Employer hereby elects to 'pick up ' die ~ry/Rcquired P:irticipam
Ccnrri bution .
~ Yes □ No
[Note to Emplo yer: Neither an opinion 1cm:r issued by the Internal
Re venue Service with respect to the Prototype Pim.. illOr a derennination letter
issued to an adopting Employer is a ruling by the l=rnal Revenue Servi ce that
Participant conuibution that are picked up by die Employer are not includable in
the Participant's gross inc ome for federal income rz1: purpose s. The Employe r
may seek such a ruling .
Picked up con1ribu1ions are excludable from !he Participant · s gross income
under sec tion 414(h)(2) of the Internal Revenue CO<k llf 1986 only ii they meet the
requirements of Rev . Rul. 81-35 . 198 1-1 C.B . 255 . Those requirements are (I)
that the Employer must speci fy that the conm"burioos. although c!esignared as
empl oye e comributions. are being paid by the Employar in lieu of con•ributio ns by
the employee : and (2 ) the employe~ must not ha ve die option of receiv ing the
contributed amoun ts directl y instead of having them p-.aid by the Emplo ye r ro the
pl an.]
□ Fixed Employer Match of Participant Contributioas.
The Employer shall ccmribure on behalf of each Participant_ '1, of Earnings for •
the Plan Year {s ubject to the limitations of Anicles V itnd Vl of the Plan) fo r each
Plan Year that such Particip am has comr ibuted _ % i Earnings or S_. Under
thi s option . there is a sing le . fmd rate of Emp loyen:omri but ions . bur a Pa11ici pa11
ma y decline to make the requ ired Participant comn1lctions in any Plan Year. in
which case no Employer contribution will be mac oa the Partic 1panr°s behalf in
that Plan Year.
□ Variable Employe r ~latch of Participant Contribu:lions.
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The Employer shall com ri bure on behalf of each Partic::pa nt an amoum determined
as follows {subject ro the limitations of Anicle s \' anc Vl of the Pla n):
_ % of the Participant contrib uti ons made b} the Panic ipant fo r the Pla n
Year (nor including Partic ipam co mributi ons exc.~ _ of Earning s or S _);
PL US_% of the com riburions made by the ?micipam fo r the Plan Year
in excess of those included in the above paragra ph (bcu not including Partic ipant
co ntr ib uti ons exceeding ir. the agg re ga te _ '1, o · E.1r::lin gs or S _).
Employer Conrribur io nson behalf of a Panicip:am for a Plan Year shall not
e·:ceed S _or_% of Earni ngs. whichever is O mo re or D less . •
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2. Each Participant may make voluntary (unmatched), aftcr-wr. contribution. subject
to the limi1ations of Section 4 .05 and Aniclcs V and VI of the Plan .
!El Yes O No
3. Emp ioyer contributions and Panicip ant contributions shall be contributed to the
Trust in accordi.nce with the following payment schedule:
PER PAY PERIOD
VIll . EARNINGS
IX .
Earnings. as defined under Section 2.09 of the Plan , shall include :
(a) Ovenime
□ Yes IE] No
(b) Bonu ses
□ Yes IE] No
LIMITATIO N ON ALLOCATIONS
If the Empl oy er (i) maintains or ever maim ained another qualified plan in which any
Panicipant in this Plan is (o r was) a panicipam or could rossibl y beco me a panicipam.
and/or (ii) maintains a welfare benefit fund (as defined in section 4 19(e) of the Code ) or
an ind ividual medical account (as defined in se cti on 415(1)(2) of the Code . und er which
amounts are treated as Annual Additions with respect to any Panicipa m in th is Plan ) the
Empl oye r hereby agree s to limit contribut io ns to all such plans as provided he rein. if
necessary in order to avoid excess comribu1ions (as described in Se ctions 6 .03 and 6.~
of the Pla n).
I . If the Panici pam is co vered unde r another qualified defined co ntribut ion pl an
maintained by the Empl oyer. other than a Regio nal Promcype Pla n. th e provis io ns
of Sectio n 6 .02 (a) thrm.g h (t) of the Plan will appl y as if the othe r plan were a
Master ProlO type Pl an . unle ss an other method ha s been indicated below .
0 Other ~leth od . (Prov ide the method und er which the plans will limit lO lal
Annual Addie ; .-..: to the Maximum Pem1i ss ible Amount . and will properly
reduce an y ex cess am oum s, in a manner that precludes Emp loyer
di sc reti on.)
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2 . lf the Participant is or Im ever beetJ a participanl in a defined benefit plan
maintained by the Employer. and if the limitation in Section 6 . 01.-of the Plar,, would
be exceeded. !her the P-.um:ipant's Projected AMual Benefit under the defined
benefit plan st al ·-reduced in accordance with the ienns thereof to the extent
necessary to satis:_,; !!UCb Jillliwion. If such plan does not provide for such
reduction, or if tilt-tun it11ion is still exceeded after the reduction. aMual additions
shall be reduced to It.: , , tem occessary in the manner described in Sections 6. 0 1
through 6.03 . The methods of avoiding the limitation desrribed in this paragraph
will not appl y if the Emplc.,yer indicates another method below .
□ Other Method . (Note ro Employer: Provide below language which will
satisfy the 1.0 limita tion of secrio ,; {l "teJ .. , ,he Code. Such language must
preclude Emplo yer discretion . ~,.., ·-"Cr;,•· l 10-1 of the Regulat io ns for
guidance.)
3 . The limitation year is the fol ing 12-consec utive month period :
X. VESTING PR OVl SIONS
The Employer hereby sp ecifies the fo!1o wing vesting schedule. subject 10 (I) the minimum
vesting requirements as noted and (2) !he concurrence ilf the Plan Admi nis crator.
Years of Specified Minimum
Service Pe rcent Vesting
~ ~ Requiremems **
Zero --1.CD.. % No minimum
One -100... % No minimu m
Two -100... % No min imum
Thre e -100... % No c less chan 20%
Four -1.ll!l.. % No c le ss ,;,J n 40 %
Five _l@_ % N 0 1 less than 60 %
Six --100.. % No t le ss than 80%
Seven , or more _..lQQ_ % Must equal 100 %
(**The se minimum vestin g requireme n:.s confonn 10 the Cod e's thr ee 10 seve n year ves ci ng
sc hedu le. If the em pl oyee bec ome s LOO% vested by che completion of five yea rs of
service. !here is no minimum for years wee and fo ur.)
XI . Loans are pennitted under th e Plan . as ;,rovid ed in Article XIV :
Ye s □ No
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XII.
xm.
XIV .
The Employer hereby attests !11 ,, it is a unit of state or local government or an agency or
Instrumentality of one or mo,~ :mirs of state or local government .
The Prototype Sponsor her eby a11rces to inform the Employer of any ameodmellls to the
Plan made pursuant to Sectior. 15 .05 ,,f the Plan or of the discontinu.n:e or abandomnem
ol the Plan .
Tne Employer hereby appointJ the Prototype Sponsor as the Plan Administrator pursuar.t
to the terms and conditions of the ICMA RETIREMENT CORPORATION PROTOT{FE
MONEY PURCHASE PLAN & TRUST.
The Employer hereby agrees to the provisions of the Plan and Trust.
XV . The Employer hr.reby acknowledges it understands that failore to properl y fill t this
XVI .
Adoption Agreement may result in disqualification of the Plar ..
An adopting Employer may not rely on a nutification ktter issued by the National or
Distric t Office of the Internal Revenue Service as evidence that the Plan is qualified under
secti on 401 of the Internal Revenue Code. In order 10 obtain reliance with respecr ro plan
qualificati ~:i . the Emplo yer must apply to the appropriate key district office for a
determinati on letter.
Thi s Adoption Agreement may be used orjy in conjuncuon with bas ic Plan d=meru
numbe1 001.
In Witness Whereof, the Employe r hereby ca uses this Agreement to be ex ec ute d on
this ________ da y of ________ . 19_.
E:VrPLOYER
By:-----------
Title : _________ _
Attest :
Accepted : ICMA RETIREME. "T CORPCR.--1. TIO'.\"
By:-----------
Title : Corporate Secretary
Atte st: ----------
• IC ~IA Rctircm,n1 Corpomion D P.O. f,o, 96220 D Washing to n. DC D 20090 -62"~ D 1-800-J co--::~2
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COUNCIL COMMUNICATION
Date A!landa Item Subfact A resolution to amnnd
the City of Englewood's ICMA-
RC Money Purchase Plan for
November 2. 1998 10 C ill Management Staff
Initiated By
Department of Fir.anciaJ Services
I Staff Source
Frank Gryglewicz, Director of Financial Services
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
The City Council met on Septemb er 21, 1998 to discuss this topic, and has made the City 's total
benefit strategy a priority !lo attract and ret ain quality employees. The ICMA Money Purchase Plan is
an integral component of e City's bene fit package that provides for employees to dir ect the
investment of City's pe nsfon cc tri bution to r their retirement.
RECOMMENDED I.CTION
Staff recommends the Ci Co cil approved th e attached resolution .
BACKGROUND , ANALYSIS, AND ALTERNATIVES IDENTIFIED
Th is resolutio ,1 allows the Oireaor of Fina ncial Serv ice lo execut ive all necessary agreements with 1t.e
ICMA Retirement Corpo ra:tion required to adm inis ter ti. 0 1an . The Plan is being amended to changr1
the required employee cornributio n from four to six perc t and lowering th e normal ret irement age t•J
60.
FINANCIAL IMPACT
Th is actio n will not have an 1moact on the City's financ ia l co ndi tio n
UST OF ATTACHMENTS
Prop os.,d res ol ution