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HomeMy WebLinkAbout1990 Resolution No. 0030 RESOLUTION NO. 3 SERIES OF 1990 - A RESOLUTION ADOPTING THE OLD HIRE POLICE PENSION PLAN DOCUMENT, DATED NOVEMBER 7, 1989, FOR ADMINISTRATION OF THE POLICEMEN'S PENSION FUND. WHEREAS, the Board of Truste,,s of •.he Englewood Policemen's Pension Plan recommends ado ption of the Plan Document; and WHEREAS, City Council desi r es t o adopt the Plan Document to establish written procedures for the administration of the Plan; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO: Section 1. The City Council of the City of Englewood hereby approves and adopts the City of Englewood -Police Pension Plan (As Restated Effective January 1, 1990) [t'he "Plan"), dated November 7, 1989. The t e r ms of said Plan are incorporated herein by this reference. Section 2. The Board of Trustees of the Policemen's Pension Fund, the hereby authorized the Plan Document City Manager, and the Director of Finance are to administer the Policemen's Pension Fund per as herein adopted. Section 3. The Plan is subject to the Englewood Municipal Code and Charter and Colorado State Statute 31-30-301, et seq, and where any conflict exists, the Charter and Code and State Statute shall supersede the Plan. ADOPTED ANO APPROVED this 15th day of January, 1990. ~,;,#,~ Patrca 11. Crow, City Clerk I , Patricia H. Crow, City Clerk Colorado, hereby certify the forego! Resolution No. __ 3_, Series of 199 • the City of Englewood, a true copy of ~ Cin or IIICLIWOOD POLICI PIIISIOII PW CM QSTUIQ lmCTIJI JAIQAIJ 1, 1990) loYaber 7 1 1919 PUAMIILI City of lqlevood Police Pendon Plen <At lt■tatod lffoctlu J■pu ■a 1, lUQl IAN Qr CQlfflJffS ilTICLI l PurpOII end D1finit10111 •••••• • • • • • •. • • ••• • • • • •• • 1. Purpoee .................................. .. 2. Definition■ •••••••••••••••••••••••••••••••• 3. Conetruction .............................. . ilTICLI II S."ica Credit ................................ .. 1. Se"ice ................................... . 2 . llrellk in Se"ice .......................... . 3. LOH of S."ice .......................... .. 4. Onrti ■e •••.••••••••••••••••••••••••••••••• 5 . Fractional T11 au ......................... .. ilTICLI III Participation lequira■ent ■ •••••••••••••••••••••• 1. Participation Ori1!.natina tinder Th• Previoua Plen ............................. . 2. Ceuation of Participation end la ■ntr:r ••••• 3 . lffect of Diaability or D11th Benefit ■ Payable Fro■ Another Plen •••••••••••••••••• AITICLI IV Co11tributiona , ., ., ., .......................... .. 1. Contribution• by Employer end the State of Colorado .................................. . 2. Contributiona by Participant ■ ••••••••••..•• 3. Participant Co11tributio111 Picked Up P;; l■ployer .................................. . ilTICLI V Penaion llenafite .............................. .. 1, lor■al Panaion c ... ace■ent ••••••••••••••• , 2, lor■al Pana on Allount .................... .. 3. Daferrad Vu tad Panaion c-c•mt ...... . 4. Daferra4 Vutad P1111io11 A■ount ........... .. 5, lupple■ental DiubiUty Panaion Aaount ••••• 6, lupple■ental Dlaability Ponalon c-c•ent .............................. . 1. lo D1cr1111 in lleneflta .................. .. ,. lDCHIH ln llenafit ■ ...................... . ilTICLI VI rora of ,.,....t ............................... .. 1. lor■al Fora of Panaion -Slnal• Life ...... . 2. InToluntary C1 ■h-outa or InToluntery PQllllltl LIH Frequently than llonthly •••••• ilTICLI VII Death lanafita ................. , , •• ., , .. ., .... .. 1 . D11th Benefit for Sunhlna Spo11.11 or Dapadat Parat .......................... . 2. Death laafit for Dependant Children (i) 0532pt3 hu..JL. I-l I -l I-L I-I II• l II• l II•l II•l II• l II-1 III .. 1 IU -1: In .. 1 III--1 IV--1 IV-•2 VI -•2 v .. 1 v .. 1 V--1 V--2 V•-2 V-2 VI-L VI -L VI-:. VII-I VII-1 VII-1 City of Bnal.vood Police Pendon Plan {Al 111t1t1d Bfftctt,, Janpaa 1, 1990) IADLB or comn:rs <cont '4> 3 , Death Benefit after lli&ibility for a Deferred Vo ■ted Pen.lion • , ................. . 4. Proof of lleath ........................... .. ARTICLI VIII Contribution Acc1111ulation Refund .............. . 1, Contribution Accuaulation Refund to Participant ..... , ..... , , ...... , ....... , , , .. ARTICLI IX Adainiatration By Board of rniataea ............ . 1, latabliabllent and Q111eral Dutha ••••••••••• 2, Meabera .................................. .. 3. ru,u ..................................... . 4. Meetina• ...................... , ........ , ... 5. Q'.10)."\111 ••••••••••••••••••••••••••••••••••••• 6, Majority Vote , , , • , ............. , .......... , 7, Co11penaation .. , .. , ............. , ......... .. I, lulaa and l11ulationa .................... .. 9, Povera .................................... . 10. Daciaiona ................................ , 11. Report of Board ......... , .... , , .......... .. ARTICLI X rruat Fund ..................................... . 1. latablisbllent of Truat Fund .............. .. 2, Payment of Contributiona to Truat runu .••. , ARTICLI XI Special Qovernmental lequiruienta , , , , , , , , , • , •• , , 1. lluim1111 Annual Benefit Under Coda Sac:tion 415 .......... , .. , ........... .. 2. leatrictiona on Tventy-1!'in (25) Bi&heat Paid lllployeaa .................... . ARTICLI XII QuarantHa and Liabilitiaa •••••••••••••••••••••• 1. IOD&uarantoa of lllployment •• , , ••• , • , ••••••• 2. ll&hta to Truat Aaaeta ................... .. 3. lunlllienation of Benefit.a ................. . AITICLI IIII Auzldaatl ... , ......... , ....... , .. , , . , , , , . , , , , , , 1, llaht to Aaend ............. , ....... , ...... , AITICLI XIV Withdraval and Terminetion , • , , , , • , , •••• , •••••• , • 1, Plan Terainetion ......................... .. 2. Allocation of .baete Upon Plan Termi.ution , 3. Manner of Diatribution .................. .. 4. Aaounta Returnable to the lllployer , , 5, · Applicable Lav , ...... , .................... , (ii) 0532p:4 lllLll2.. VIt-1 VII-2 VIII-1 VIII-1 IX-1 IX-1 IX-1 IX-1 IX-1 IX-2 IX-Z IX-2' IX-2 IX-2 IX-3 C IX-3 X-1 X-1 X-1 XI-1 XI-1 XI-4 XII-1 XII-1 XII-1 XII-1 IIII-1 IIII-1 IIV-1 m-1 IIV-1 IIV-1 XIV-2 XIV-2 Cl ty of lnalevood Police Penalo11 Plan CA ■ l11t1t1d lff1ctt,1 January 1. 1990) lll.6lllLI IIBllliS, the bployer had pr.-,iouely Htablhhtd • peuio11 plan under State et1tuu11 for it ■ pollc• officer• (herdnafttr referred to u the "Prnioue Plan"); and IIBllliS, Hid oraanizetion 110v deeirH to ucmd and continue the Pr..,ioue Plan by • eeperate rHtetement in ite entirety and the riaht to eo uend h reeened to eaid oraanizatio11 under the pro•hiona of the Prnioue Plan1 ll0W, TBIIIFOU, the Prnioue_ Plan, vhich vu aaintained by the bployer under Title 31, Article 30, Part 3 of the Colorado 1.-,i ■ed StatutH, 1• hereby reatated, and uende-! in it• entirety, euper ■eded 1114 replaced by thi■ ■eparete rHtated Pl,lll. There vUl be no teraination and no a•P or lop ■e in ti■• or effect between euch Plane, and the uhtence of the Plan •hall ba eontinuoue and uninterrupted. Thie reetated Peuion Plan 1a conditioned upon it• quellficetion under Section 401(•) of the lnternel Revenue Code of 1916, u uended fro■ ti ■• to time. Th• ttru uul cozuli tlona of thi• rHtattd Plan ere H follove 1 0532p1S illli.LLl Puruo11 and Doftnitiona Soct!gn 1. Purpg111 Tho purpooo of thl ■ Plan I ■ t<' proYlde retlruent and incldentol beneflto for oll lmploy111 (11 herelnofttr defined), their ou"lvin& opouuo, dependent children and dependent parento, who complete • period of faithful oervlce and othervl ■e become el11ible hereunder. The benefit• provided by thl ■ Plan vlll be paid from • Truot Fund eatobllohed In connection vlth thl ■ Plan. Thi ■ Plan and tho oep11rate related Penalon Truat formlna a part hereof are ootabll ■hed and ohall be a..tntalned for the u:clualve baneflt of th& oll&lbla Employee ■ and their llene!lclarle ■• lxcept II hereinafter provided, no part of the Truot Fund can ever renrt to the lmployer, or be uoed for or d l nrted ·to purpooeo other than the uclu ■ln benefit of the lmploye11 and their Beneficiarle ■• Scct!gn 2, Dcf!n!t!gn■, Where the follovlna vordo and phraoeo oppeor In thla Plan, they ohall han the re ■pectlve meanlnco aet forth belov, unleao their context clearly lndlcat11 to the contrary, •• Accrued Pcn ■!gn, The 'Penolon determined under the Plan upr1111d In the fora of a aonthly benefit comenclnc at 1'orul Retlreaent Date (or dote of actual retlr•ent If later), which an Employee ha• accrued at any tlmo under the pro'l'l ■iona of the Plan, re1ardl111 of hi ■ ve ■ted atatua, determined aa if ho had then terminated emplo:,aent. ►, .lctuar!al tor Actuarially) lquinlcnt, !quality In nluo of tha euro1ata aounta u:pectod to be rocel ved under different unnero of P0111&1 huN Oil lntaraat rate and aortolity aaauaptlona, In offoct on the dato u of vlllda tho benefit 1 ■ to comenco, aa auch aaouaptlona aro doflnad below lllllaoa otharvlae apeclflcally proYidad in tho Plen. 0532p16 Int1r11t r1t1 IIIWPtlPP -Th• int1r11t rate •••uaption ua1d for purpoaoa of coaputlnc optional foru of benefit pa:,aenta allall ba H'l'ID and Olle-half percent (7 1/ZS). C ,,........._ tl.,,e, l!Rtl•llty 111111ptlon -The ■ortallty 111111ption uaed for purpo111 of eo■putlna optional for■a of benefit paymenu ■hall be IIP-1914 Mor tall ty Tabla. ,_, __ )0.1rll: The Board ot' rru1te11 eat1bllah1d under Article IX hereof. ~: The Internel Revenue Code of 1986, 11 amended from tlm1 to •• Compcnutjon: A: l baae pay (aa de!lned ln the Clty of Enalevooic\' a PenoMel Pollci: and Procedure ■) recehed by the Portlclpant for bl ■ r.overed Employment, lncludlna lonaO'flty pay, holiday pay, alck pay, anci vacation pay taken In the normal couraa of employment, and ahl!t differential, but Co■penaatlon ahall exclude co■penaatlon for o'"rtl ■e, (or compenaatlon In lleu of onrtlme required under the Fair Labor Standarda Act), clothlna allovance, lump-1111 amounu paid ln lleu of accmulated ncatlon, holld1y1, and ■!ck lean, and compenaatlon imputed aa • r ■■ult of tha Partlclpant'a cae of the Bllployer'a auto■oblle. A Participant•• Compen ■ation ahall lncluda eny uounta deferred aa to auch Partlclpent under Coda Section 125, Code Section 457 or under Code Section 414(h), except to the extent auch amounu vould be u:cluded under the lmadlately precedlna aentenc•, Compenaatlon taken lnto account under the Plan ■hall not exceed $200,000, •djuated f~r chanaea In the coat-of-Hvlna •• provided In Code Ser.tlon 415(4), for the purpoae of calculatlna a Partlclpent' a Accrued Penalon ( lncludlna the rlaht to any optional benefit provided under the Plan) for any Plen tear comenclna after December 31, 1918. f, Contribution Accumulation: The Participant'■ •11re1ate contribution■, plua fhe percent (SX) almple lnteraat on the total amount, •, Coytrcd lmplgymont: The employment c1te1ory for vhlch the Plen la maintained, vhlch la re1ular employment vlth the Bllployer aa a paid member of the Employer' a Police Department end lncludea ell cert! fled peraonnel vlthln the Polle• Dopart■ent hired prior to April 8, 1978, bcluded are leued aployeee vi thin the ■eanlna of Code Section 4i.4(n)(2). h, Diaability gr Diaablod: A phyalcal or ■ental condltlon vhlch, ln the judpent of the Board, totelly and prea,aably gerunently prennta an l■ployH fro■ parfor■lna the dutlea of any occupetlon for vhlch the l■ploy .. , by reaaon of hla education, tralnlna and experience, vould be cepabla of perfor■lna, but for the injury or lllneaa inYolnd. In deur■tnlna vhethar any l■ployee la ao perunently dlaabled, eny dlaablllt7, and any llnovn lnj,ary or lllne■■, vhlch pre-u:lated tho l■playH'a •ploy■ent ¥Ith the City, ahall be dlare11rded, I, lffes:tlu Dau Jenuary 1, 1990. I-2 0532p:7 j. laploxee: Any perao11 vhou CoYlred laplo:,a111t vl th the lapl~yar com111ced prlor to Aprll I, 1971, 111d vho, 011 111d a f ttr tha lffactln Data, la receivl111 rea1meratlo11 for Conrad Eaplo:,a111t or vould be racel'rl111 auch re11,meratlo11 except f or a duly authorlzod abu11ce. Included are leaaed eployeu vlthl11 the me111l111 or C~d~ Section 414(11)(2), llotvlthat111dl111 the fore10l111, If ■uch leaaed eaployeaa co111tltutt lea ■ th111 tve11ty percent (201) of the lr.ployer'■ 11onhl&hlY compe11■ated vork force vlthl11 the me111l111 or Code Section 414(n)(5)(C)(II), the term "!aployee" 1h1ll not Include thou leaaed uployeu covered by a plan ducrlbed 111 Code Section 414(n)(5). k, Employer: City of E111levood, Colorado. 1. F!nal Monthly Componaation : Thi ••■ult obtd11ed by dlvldl111 the total Compen■atlon pdd to III Eaployee durl111 hi ■ final tvdve co111ecutlve montha of Covered Eaployment by tvelve. m. Limitation Year: The year u■ed In 1pplyl111 the limitation• of Code Section 415, vhlch ye ■r ■hell be the calendar year. llotvlth1t111dl111 the lffectlve D ■te hereof, ouch llmltatlo111, H ■at forth In Article XI, Section 1. hereof, ■pply be1lnnl111 vlth the fl rat Llmlt1tlo11 Year be1lnnl111 after 1982, n. Ronpal Rctircmcnt Dau: The dote vhe11 a Partlclp111t baa attained hla fifty-fifth (55th) blrthd ■y 111d completed tv111ty (20) year• or Se"lce, or the date vhe11 a Partlclp111t ha ■ completed tve11ty-flve (25) C year, of Se"lce, o, Participant: An Employee vho Htta the 1ll1lblllty requlreae11ta for partlclp1tlo11 111 the Pl111 H deacrlbed 111 Article III hereof, p, Pcn■!on: A ■erle ■ of monthly amo,mta vhlch ■re peyable to a perao11 vho I ■ entitled to receive beneflta ,mder the Pl111. ll,.__lj.an: City of l111levood Police Pe111!011 Pl111 (Aa Re ■tated Effective J111uary 1, 1990), a ■ amended from time to time. r, Plan Year: The tveln (12) month period be1lnnl111 011 J111uary 111d elldl111 011 Decuber 31. •· Proyloua Plan: Police P1111lo11 Pl111 of the City of llllllevood ln force 111d affect (lllldar Title 31, Article 30, Part 3 or the Colorado IH!aed Statute■) for the period prior to the lffactln Date, the Pl111 hereby b ■llla aatlllded 111d re1t1ted . Any refer111ca hard11 to th■ Pre•loua Plu. H of a certain date or for a certd11 period ■hall be d•-d a refer111ca to the Prnloua Plu. H then 111 effect, •· Slnlce: A parao11'• period or period• or •plo:,a111t •• u. lllploy11 uaed l11 deteral11!111 ell&lbillty or the uo,mt of b111erita 111d ducrlbed 111 Article II hereof, t. Tryt or Tryt bwl• TIie fund ulntalne4 to prOTide the bneflu celled for under thle Plan, H dHcribtd iu Article X hereof , hotion l. Conatruetton, TIie ueculln• ,mer, Vilar• appearlq in the Plan, ehell be deeud to include the f•inint 1mar1 the elnauler u:, include th• plural I IDd Tice Tar ■a, 11111... the conte:tt clHrl:, indicatH to th• contrar:,. I--4 0SJ2p19 ARTICLE II Seate, Credit Sactigp 1, S1nic11 So"lca l ■ th• parlod of 111plOY111Jlt UHd ln determlnlna ellalblllty for benoflt ■• An Ellploy11'1 total Se"tc ■ credit ■ball b1 1 a. Bl ■ total period of Covered Ell~loyment vltb the llllployer, 1ubject, bovaur, to Article II, Section 3. belov; IJld b . Any prior period of 111ployment, before April 9, 1971, vitb IJlotber pollc ■ deportment vbicb m ■int ■in■ a polic ■ p■n■ion f1111d 1111der the l ■v■ of the St ■t ■ of Color■do, ■ucb prior 1>•riod of 111ployment to b ■ credited in the 11111 aanner IJld to the ■ame utent a■ Se"ice vltb the llllployer, ■ubjact, bovner, to Articlft II, Section 3, belov; and c, Any credit called for 1111der federal lav for IJl ab ■enca du■ to military duty. section 2. Break ip S,a!ce: An llllployee ■hall ban a bre ■lt in S ■"loe if bi ■ Conrad llllployment vltb the Employer 11 terminated, An llllplo1■a•1 authorized leave of ab1enc1 ■ball not reoult ln a brealt in Se"ica1 bovanr, the llllployee vlll not recein IJlY Se"ice credit durin& ■ucb ID ab ■ence, Section 3, Lo11 or Staie•: If ID llllployee baa a brealt in Sa"ica prior to bavina five (5) 1ear1 of Se"ice, or after b..,ln& fln (5) year■ of S ■"ica but vitb aucb braalt ra ■ultina in • rafUDd of bi ■ Contribution Accumulation, ha ■ball 1011 credit for bi ■ prior S1"ic1, even if reemployed. section 4, Oytrtime: Ko period of Se"lce ■ball be de1111d to b ■ increa■ed or utandad bJ' overtime. Sec ti~ $, rroctigpol X11r ■, In determinina Sa"ice credit, sa"lca for fraction■l yaara ■hill ba allovad on tba b1 ■i1 of ona-tvelftb (1/12) of ona year for each full calendar aontb of aucb S ■"ic ■• II-1 0532p:10 UTICLJ III Parttctvatton l1aulrAnt1 StsttAP L Partlclnatton 0rl1in1tlna Under Thi Prutou ■ Plan, laploy111 in Covered lllployment vbo v1ro Participenu in tho Pr.,.ioua Plan imadiately prior to th• lfflctin Dau ahall automatically baco■e Participanu in thi ■ reatated Plan aa of the lffecthe Date. S1ctiRP 2, C1111tlon of ParticiP&tlPP and. l11Pta1 If a Participant lune Conrcd lllp\Qyaant, ha vUl ceaaa hi ■ participation in Chia Plan, •ud. vill not a1ain b1c01ia a Participant. (Recomanc1■1nt of Conred l■ployaant reaulta in conroaa under a atatevide penaion ayate■ under Title 31, Article 30, Part 10 of t he Colorado ieTiaed Statutea,) s,ctlon 3, lffcct of DiaablULY or Death lm1fit1 P&Yablt Fro■ Authll llllls If a diaability or daath benefit 1 ■ p1yable to or vith reapact to a Participant in accordanca vith Section 31-30-1007 or Saction 31-30-1008, Coloredo l1Tiaed Statutea, then no benefit except Cha Supple■ental Diaability Benefit apacifiad in Article V, Section 5 hereof ahall be payable fro■ thia Plea to or vicb reapect to auch Participant. III-1 0532psll ARTICLS IY Contrtbutton ■ Section 1. Contribution ■ bY lmPlOYI[ and the Stat, pf Col0r1do 1 Thi , ... ty of E111levood ahall malte contribution• to the Truat Fund adequata to finance the benefit ■ provided by the Plan on a aound actuarial baaia. Tho required contribution■ to the Plan 1h1ll be dot•rminod by a competent octuary; provided, however, in no event ■hall tho City of E111levood'a contribution• be 1111 than the amount contributed by Participant• under Section 2, Article IV hereof, The amount of contribution aholl' never be le11 than tho amount required by Colorado State St ■tute or Fire and Police Panalon A11oclatlon rule ■ and reaulationa. Contribution■ may al ■o be received hereunder froa tho State of Colorado in accordance vlth oppllcable ■Ute lav, or from any peraon. Contributlona may be received by 11ft, 1rant, devlao or boquoat, in the form of money, peuonal property, real 11tate or any lntoro ■t therein and may include all moneya, fee ■, revarda and .. olument ■, ucopt police officer•• oalarie ■, of every nature and deocrlptlon that may be paid or alven to the Police Department or any of It ■ m .. ber ■, Any amount ■ alven to tte Employer'■ Police Department or to an Employee In hia capacity a ■ a pollci ol!flcer, except a ■ hi ■ ■alary, may be recehod a ■ a contribution henund•r. All ouch contrlbutiona ■hall ba ua od to pay benefit• under tha Plan or to pay upanae ■ of tba Pla and Truat &114 •hall be i rrevocablo, ucapt for any amount ■ remalnin& after oatiafyin& all Uabllltie ■ of tho Pla, Forfeiture ■ ariai111 becau■-of HTeranca of emplo:,aent before the Employee becoao ■ •ll&ibla for a Ponalon or for any other rea ■on ■hall ba applied to reduce tha coat• of th• Plan, not to increa11 the benefit ■ otherviao payable to the Participant ■• IV-1 0532p:12 l ■ctf,pp 2. Cpntrlbutf,gp1 by P■rtf,cipmt11 lach Pl111 Particlp111t ■hall contribute toward th• coat of proYldln& bane flu under thi ■ P1111 117 pa7roll deduction■ at the rate of fin percant (51) of tha Partlclp111t '• Caapanaation each aonth. Section 3, Parttc:tPIPt ContrlbutiPPI Picked VP IY IIPlRYltl Participant contrlbutiou mada after the date thl ■ r11tated Plan le adopted ahall be pickad up by the bplo:,er. The contribution■ 10 picked up by th• laployar ehall be treated II Participant contrlbutiona for purpo111 of thle Plan 1Yan thou&h ouch contribution■ are treated ae l!llployer contributiona for incoaa tu purpo111 in accordance vlth Code Section 414(h), ror purpoaea of thla Section only, the Coapanaation (11 defined in Article I, Saction 2,e) that a Participant vould otherviee rectln for Conrad lmplo:,aent ehall autoaaticall7 be reducad by an amount equal to the contributiona •• picked up for auch Participant, For purpo111 of detanilnin& a Participant'• Accrued hr.alon under thlt Plan, Compenution ehall be ae defined In Article I, Section 2,e. 05J2p113 IV-2 ~ Pen■ion 1101fit1 S,ction 1, ffon1&1 Pendon Comoncgont: A Participant hereunder ahall ba entitled to hia Accrued P111aio11 if hia Covered Employment vith the Employer 1a terminated on or after hia ll'ormal letir111e11t Date, Any Participant vho deairea to retire fro■ Conred Employaent and recein • Penaion fro■ thia Plan ahall aub■it a written application to the Board, vhich application ahall 11t forth the facta entitlina ouch Participant to a Penaion hereunder. The 1pplicatio11 1hall 1pecify the time, neither leu than ninety (90) nor ■ore than 0111 hundred ei&hty (110) daya 1ubaequ111t to th• !111111 of tha application, vhan the Participant deair11 to be retired. Tha Board 1h1ll a c t upon auch 1pplic1tio11 if the Participant 1a entitled to retire. The action of th• Board 1h11l be completed within aixty (60) 41:,1 after the filinc of the application. Payment of a ll'orul Penaion vill comence the firat day of the month follovinc the Participant • a actual Retirement . If a Participant retiree prior to the lan day of tha ■onth, hia firat payment hereunder ahall i11clud1 a partial payment prorated fro■ hil data of retirement to the end of th1 month, Section 2, ffon1&1 Pendon Amount: A Participant vho ■ut1 the requira■anta for hia .lccruld Penaion ahall racoin an &1111ual penaion (pa:,abla ■onthl:,) ¥11.ich ia equal to: Tvo an4 one-half percent (2 1/21) of the Participant• 1 Final llonthl:, Co■penaatioa ■ultiplhd by the Participant• e firot tvent:, (20) :,earo of ao"ice, plua Olle percent (11) for Heh additional :,oar of ao"ice, t o a 11a:d-of aizt:,-fin percent (651) of Final Monthly Co■penaation. V-1 0532p:14 S1cttan 3, D1f1rr1d Y11t1d Pn■tPA Cowenc:11:mtt A Participant hereunder 1h1ll bl 1U1ibl ■ for I Deterred Veated Pendon if hi ■ Covered Employaent vith th ■ bployer i ■ u .. in■ted prior to hi ■ ell&iblllty for a 110 ... 1 Pendon but efter he beco■e ■ ve■ted in , Pendon benefit under tha follovina ve ■tina ■chedule: Vcatfp,g Sch1dul1 A Participant'■ ve ■ted intere ■t II determined, accordina to the Participant'■ yaara of Se"ice, aa follow ■: Participant' 1 Yeara of s,ntco Le ■■ than 5 5 or ■ore Veated Percent•&• of ParttciP&nt 'I Accru,d P ■n■iPD 01 1001 Se"lce a ■ u ■ed in Article V, Section■ 3. and 4, ■hall include only tha Participant •• period of uployaent vith the City of lnalevood, Payaent of a Defarred Veated Pendon ahall c011■1ence aa of the flr ■t day of the ■onth next follovina the Participant'■ attainment of •1• fifty-fl.,. (55) if he II livin&I hoven1:, if the Participant requeata a refund of hi ■ Contribution Accu■ulation under Article VIII, Section 1. b hereof, he ■hall forfeit ■uch Deferred Ve ■ted Pen■ion, If a Participant retire ■ pur ■uant to t hh Section prior to the la■t day of the ■onth, hi ■ Ur ■t payaent hereunder ■hall include • partial payment prorated from hi ■ date of retiruent to tha end or tha ■onth. Sactton 4 D1f1rr1d Ye ■ttd Pcn ■lon A.mow~: A Participant vho •••t• th• raquir•enta for a Defarred Ve■ted Pen■ion ■hall racdve a ■onthly a■ount aqu&l to1 Tvo and one-half percent (2 1/21) of hi ■ Final llonthl:, Coap■naation ■ultipUed 11:, hi■ flr ■t tvaty (20) :,ear ■ of la"ice vlth th• l■plo:,er, plu■ one percat (11) for Heh addition■l :,■ar of ■■nice, to • ■uill1a of ab:t:,-fln percat (651) of r in■l llonthly Co■p■naation. 0532p115 V-2 S1stton 5, SUPRlcm1nt1l Dt11btlttv Pcn1ton Ama,mt: A Participant hare1111dar ehall be •ll&ible ror • Supp ~uental DhabUity Pen■lon 1r hi ■ Conrad llllployaent vith the Employer h terminated due to DiaabUlty , A Participant vbo .. ,u the require.H cte Cor • Suppluantal DiaabUlty Pendon ehall racllve a aonthly Pe1111ion equal to tventy percent (20X) or hh Coapenaation being received et the date or hi ■ niaabUlty . Section 6, SUPRlMIDtll Dt11bllttx P1n1ton CamcnSMIDt• Payment of a Suppluental DiaabUlty Panaion ahall comence on the Ur■t day or the aonth Colloving the date or Diaability. Ir a Participant 1 ■ entitled to a Supplemental Diaabillty Pen■lon pur ■uant to thh Section prior to tha laat day or the month, hla Urat payment bere1111der ■hall include • partial payaent prorated from hi ■ dete or di ■abUity to the end or the month. The Supplemental Diaability P11111ion amo1111t ahall be paid monthly 1111tll the Participant atuina hh lormal Retirement Date. Payment or the Supplemental Diaability P11111ion ahall ceaae ahould h be aubaequently determined that, by rea ■on or retraining, improvement in condition, or ror ,my other reaaon, the Participant 1 ■ no longer permanently Diaabled rroa performing the duti11 or any occupation ror vbich be 1 ■ queUUed; and there nhdl be deducted fro■ the amo1111u payable 1111der Article V, Section 5 hereof, an amo1111t •~ual to any income earned by the Participant aa • re■ul t or per ■onal ee"ice ■ ( d ther a ■ an employee or another or on hi ■ ovn behalf), Any auch Supplemental DiaabUity leneUt provided purauant to thi ■ Section ehall be reduced in accordance vlth the rolloving pr0Ti ■io1111: •• Ir the Participant rocdve ■ or had received vi t hin ona year prior to the avardina or a diaabillty benefit an avard llllder tha "Worll■en'■ Co■penaation Act or Colorado,• th• Suppl•ental Diaability Pendon ■hall ba raduced by one-half or t he avard ude ,PUr■uant to ■aid act. Ir ■uch avard vu ude in a l1ap-■1a IIIOllllt I the r d uction ■hall ba ude accordina to rule a adopted by the Board. V-3 0532p:l6 b, lf the Pertlclpant hu 1DJ Hrned lncoee other than that prOTlded by the luppl•mtal DlHblllty Paalon and, lf appllcable, a vorlallll'■ coepaaatlon award, that pro•ld11 a total lncoea 1rHt ■r than an ucnmt ■qual to on■ hundred p ■r c ut (1001) of th■ baH Hlary pro'fld ■d to an actl'fl Particlput of th ■ 1u1 rank at Vblch tha Participant retired the Suppldental DIHblllt)' Penalon ■hall be reduced by tvanty-fl'fl percent (251) of tha additional ■arned lncoaa. c, l,ny pro•l ■lon hardn to the contrary notvlthatlDdlna, 1DJ Suppl dental Dl ■ablll ty Penal on prO'fldad pur ■uant to ■UbHCtlOD a or 1ub11ctlon b of thl ■ Section ■hall be raduc ■d by the pro rata uount of ID)' aoclal ■ocurlty b ■n ■flt r ■cel'fad by th• Partlclput attrlbutabla to th ■ P ■rtlclpant'• quart ■r ■ of ■oclal 11curlt7 conr■1• darl nd froa bl ■ •ployaut for th• laployer, S.ctlgp 2, 19 Q ■sr1111 ln Bm1flt11 rill ■ r11taud Plan ■hall not r11ult In th• d1cr ■aa1 of bcoflt■ accrued by 1DJ Participant under the Prl'flou■ Plan lal1dlatol7 prior to the lffactln Dau of thl ■ r11t1t1d Plan, Soctlgp I' IQGtHHI ln Benefit ■ I Pro'flded that th• rru ■t 1'und la properly funded II provided In Article IV hereof, and upon reco■-mulatlon of th ■ Board, t\11 City Council of tho City of lnalevood aay IDDUllly 'fOte upon and appron a co ■t-of-llvlna lncre11e In tha Accrued Paalon bllna paid to any Partlclpanta recel'flna benefit■ under tbl ■ Plan. ilTICLI YI Pora gf PIDIP:t 1,ctlAI 1, 19CN1 rom pf P101too -Stul ■ Ltf11 Unl••· Articl1 VI, Sectlon 2, hore~f t ■ 1pp1lc1blo, 11111 PIIUllon occruod lllldor Article V h1r1of, vlll bo pald •• a stnalo Llf• Panaton. Under thl• fon, of Panaton, 110nthl:, payaanto ore uda to tha Porticlpant durl111 the r•alnina lif e of the Participant, Sot;tlon 2, IPYoluntaa C11 ·out ■ or Jnyolunt,a Ptn1nt1 L111 rr,auntlv Than Monthly, If a Ponaion p1yahl1 lllldor thi ■ Plan 1 ■ 1111 than Ono llull.dred Dollare ($100) per month, tho Boord uy direct that, in lieu of 111ch 110nthl:, Ponalon poymant, tho Actuarial lqulnlont thereof ■hall ba pald ln quartarl:,, ••lannual, or annual uounta, or •• a lU11p-11a aaount. VI-1 0532p:18 ARTICLE 'III Death Benefits Section 1. Death Benefit for Survivinc Soousc or Dependent Parent: If a retired Participant vho 1a receiving a Pendon benefit hereunder ahall die, leavin& a surviving spouse or dependent parent or parenu, auch aurvivin& apouu or dependent parent or parents shall be awarded a monthly annuity equal to one-half (1/2) of the monthly Pension of the retired Participant at the time of ,lis death so long as the surviving spouse or dependent parent remains unmarried, I! such payment 1s to be made to tvo dependent parents, it shall be divided equally between them. No dissolution of a subsequent marriage shall have the effect of reinstating said spouse or dependent parent on the Pension roll or authorizing the granting of a Pension, A Pension shall be paid to the surviving parent or parents of ., deceased retired Participant only ,::) if there is no surviving spouse or children. Section 2, Death Benefit for Dcocndcnt Children: The Board shall direct a Death Benefit be paid to the surviving spouse or parent, or the legally · appointed guardian, of each dependent child of a deceased retired Participant vho vas, at the time of his death, receiving a Pension benefit hereunder , Such Death Benefit shall be a monthly annul ty equal to one-eighth (118th) of the Pension of the retired Participant at the time of his death for each dependent _child, to continue until such child reaches the age of sixteen (16) years or dies, 1! earlier. section 3. Pcatb Benefit ,ctcr Elidbilitv (or • P•Ccrrc4 Vested f.cnl.1.Qn: If any Participant should die after he la eligible for a Deferred Vested Pension hereunder but before Penlion benefit• have co111111nced, hia apouae, if living, or. his estate, if no apouu or if hia apou11 1• not livin&, VII-1 0532p:19 ahall ba 1ntitl1d to r ■cli'fl tho Particlplllt'a Co11trlbutlo11 .lccmulatlo11 111 a 1111111 am . 111 llou of thla 111111 ■ am, a 1uni'fl111 apouaa u:, 1l ■ct th ■ mo11thl:, d11th b1111flt aat forth 111 S.ctlo11 l of thla .lrtlcl ■ VU to b11l11 011 tho flrat da:, of tho month follovl111 tho d1t1 the Partlclplllt vould han attal111d 111 flft:,-fln (55), Sootipn 4, Prppf pf D11th 1 ror tho purpo11 of thla Pllll, th• procluctlo11 of a c ■rtifled cop:, of th• death c1rtiflcat1 appllcabl ■ to tho decoaa ■d ahall b ■ aufflcle11t 1Tld111c1 of death, and tho Board ■hall ba full:, protectld 111 rll:,1111 th1r ■o11. 111 tho aba111c1 of auch proof, th ■ loard u:, rll:, upon ouch other 1Yld111c1 of death a ■ it d11U 111c1a■ar:, or adYla ■bla, VII-a 05Up1Z0 AIIICLI YIU Contribution Accumulation l1fund1 Stctlan 1. Contribution Accumul1ti ,1n lcftm.4 to Participant: •· Prlgr tg llhibllity {gr Penaign B ■na{itu If any Partl.cl.p1111t'• employment vi.th tho Employer I.a terminated before he quall.fl.H for • benefit under the proYl.al.one of Article V hereof, he •h•ll bl entitled to recel.n hi.a Contrl.butl.on Acc111111latl.on l.n the form of • el.nale eum payment; hovever, l.n, order to recel. n euch 11.nale aum ~ayment, he 11uet apply l.n vrl. tl.na, b, After lllalbtlltY for Deferred Yt■ted Pm■ton BIDtflt ■: If any Partl.cl.pant'• 111ployment vi.th the lmployer I.a tll'llll.neted entl.tll.na hi.a to a Deferred Veeted Penal.on hereunder, h• uy elect l.n vrl.tl.na to recel.n hi.a Contrl.butl.on Accumul1tl.on p1y1bl1 l.n • 11.nalo eua et &ll)'tiae prior to tho co11111encement of ht• retirement benefit; proYl.ded, hov1nr, th1t euch ol1ctl.on :=) eh1ll not be effecthe unlH1 hi.a epouee (l.f ho hH a epouao vho c1111 be located) coneenu l.n vrl.tl.na to euch el1ctl.on, 1clmovlld&H tho effect of ouch ellctl.on 1111d hH euch coneent 1111d aclmovled1om1nt vl.tneeaod by a Pl1111 repre11nt1tl.n or a notary public, If a Partl.cl.p1111t doee not elect to receive euch payment, l.t ehall remain l.n the Pl1111 1111d he &hall rocdve hi.a reaular Dafarred Veoted Panel.on l.n accord1111ce vi.th the proYl.al.one hereof, In the Hant the Partl.cl.p1111t elect• to take hi.a Contrl.butl.on Acc111111letl.on u Ht forth abon, h11 Deferred Veeted Panel.on oth1rvl.■1 payable hereundar ahall be forfeited, VIII-1 0532p12l ARTICLI IX Adatnt1tr1tton Bx Board of Tru 1t1c1 IWimL.l, l,tabU ■hmcnt ■nd Gener■l Dut!e■: Thero i ■ h e reby created • Board of Tru1tu1 ("Boord") vbo ahall unaaa, uao, and cli ■buraa the Truat Fund in .:onforaity vith ita rulea, by-lava end thi ■ Plan, Tha Board ahall talta ell necuaary atepa end puraue all neceaaary remedha for tho preaanatlon of the Tru1t Fund. section 2, Member ■: The Board 1h1ll con1 i ■t of (1) the Mayor of the Employer (b) the Director of Finance of the Employer, vho ahall be treaaurer of the Tru1t Fund, (c) ona Member appointed by tha City Cov.ncll and (4) throe (3) Membera vho are active retired or deferred vu ted Participanta, Such Porticipant member ■ ahall be elected by a ujority vote of tha Participants hereunder . The Chairaan ahall ba elected by the Board. Section 3. Term■: The Board ahall aone tuu of office aa follova : Mayor for tenure in office ; the Director of Finance for tenure in officaJ the City Council appointed Member ahall be for a thraa (3) year tara of office; and the three (3) M111bera vho aro octive retired or deferred veated Participant ■ ahall be for a three (3) year tera of office. Initial alactlon of the Participanta 1hall be conducted to elect ona (1) 11embar for thraa (3) yeara, ona (1) member for tvo (2) yeara and one (1) ■111ber for one (1) yarr, and thair tc,•ura of office ahall run fro■ January 1 to Dac111bar 31 of aach year. Tha Board ahall arranae for electiona of auch Board ■111bara and &hall aatabliah the rulaa end procedure■ to ba follovad in auch alactlona. S ■ction 4, M11t1n11, Tha Board ahdl hold a ■ini-of tvo (2) aanaral 1111tlna• each yaar. IX-1 0532p:22 ~ Special ■11t1111• of tho Boord •hill bl hold It UIJ ti•• It th• coll of tho Chail'llan or ony t hru (3) a1■b1r1 of tho Boord , 0 S.ct!gn 5. Quorum: A aojority of th• ■ember ■ of tho Boord •hill con1titut1 • quorum. Sect!gn 6. Ma1gr!ty YPUI All 1ction1 token by tho Boord •h•ll bl by • Yotl of I majority of thoae pr11ent at ouch aeeti1111, u:cept that no a1■bar of tho Board 1h11l vote on ony matter vhich pertdn1 1olely to hiaaelf or to hta ri&ht• or benefi ti 1mder the Plan. Section 7, Comp111aattgn: lo ■ember of t he Boord 1hall recdn coaponution for hi ■ 11"ic1 on tho Board but a ■ember uy be reiaburaed for reaaonable u:penaeo incurred in connection vith hi ■ dutiea aa a ■ember of tho Boord. Sccttgn a, Rule ■ and Rcgulattgn ■: Subject to the 11■1tatione of tho proviliono of thh Plan, the Bo ard •hall from time to time eatabl11h rule ■ and re1ulation1 for the perfol'IIUlce of iu runctione and the adainhtration of thh Plan. Soct!gn 9, Pgvcr ■: The Board 1hall haYe 111 povero neceaury to 1up a "i11 the adainhtration of thil Ph:, and the Truat l'un4 and to control itl operation in accordance vith it ■ teru , includina, but not by vay of liaitation, tho follovlna : •• To interpret tho proYhione of thh Plan and to det1r11ln1 any qu11ti011 uillna und1r tho Plan, or ln connection vlth the adalnlotratlon or oporat.1 •'11 thlroofJ b ,' · to d1t1raln1 •11 conelderatlon1 aff1ctl111 tho •ll&lbllltJ of ony laploJ11 to b1 or vbo blco■H • Participant of tho Plllll l c. to do ·or11ln1 tho h"lc1 cndlt of any P-lrtlci pant and to coaputa tho a■ount of any am payable undar t L.~ Plan to any par ■on; 05J2p:23 d , to authorizo and dlract all dlaburaemonta lllld u th• Plana U:-2 a. To •ploy any peraon or oraanlzation to obtain auch cl1rlcal, ■1dical 1 ll&al and actuerial ""icH H it ■ay du■ n1cH11ry or 1ppropriat1 in cerryina out the pr0Yhion1 of thh Plan; r. To 1101 or arrenc• for valuation• and apprdula or the aaaet ■ held under thh Plan and vi th the advice of an actuary, to deter■in• the liabilitha or th• Plan; I • To create re ■e"e ■ for ouch aaaet ■ for any purpo111 h. With the advic ■ of an actuary, from tim■ to ti111 to adopt for tha purpo&H of thh Plan, auch 11ortality and other table ■ u it may daea nec1111ry or approprlate for tha 011eration of the Plan; i. To authorize the Chainian of the Board to lian all leaal document• and report ■ on behalf of the Board; J. To hold the a111ta of the Plan in • Truet ,ccount entitled "Policemen'• Pendon Fund for the City of Enalevood", and inv11t and rlinv11t the 11111 and to ult• ouch vi thdravala ther1fr011 aa ■ay be 1uthoriud by thh Plan for the payment of benefit• and upenHa of the Board and 11eab1r■ thereof. Th• Board may 11lect a Corporate Truat11, Cu ■todian or an Invutment Advhor to 111i1t in the 11ana1•ent of the Truat Fund. I<. To ■aintlin auch record ■ and account• and to render ouch financial etatementa and report ■ aa ■ay be required fr011 ti111 to ti■•· Section 10, Doci ■ion11 Any deciliona of the Board and any action tllten by it vith re ■pect to thia Plan, ■hall be concluaiva and bindin& upon any and all Participant ■, retired Participant ■, their ben1ficiari11, heir■, dhtrlbutee ■, executor ■, adminiatr ■tor ■, and aalian■, and upon all other per■ona vhatao-ever. All deciliona 11ade by the Board ■hall be ude in a nondhcriminatory ■a1111er. Soction ll, Report of Board: The Board •hall ult• an annual report to the lllpl071r on the condition of the Tru ■t Fund. IX-l 0532p:24 0 ~ Tru ■t Fund Soc;tigp 1, l ■t ■bll ■hllopt pf Tru■t Fund, A Tru■t Fund ha ■ be■n a ■tabll ■hed for th• purpo11 of rec1hi111 contribution■, ancl pa7i111 b■nefit■, Ullder thia Plan, Tha Board 1hall adaini ■ter the Truat Fund in accordance vith the ta ... of thi ■ Plan, The Board, in it ■ di ■cr ■tion, u7 vith Cit7 Council appronl appoint • Truateo, in■uranca company or innatm■nt unaaer to innat all or a portion of the fund ■, Section 2, Payment of Contribution ■ to Tru ■t Fwd: All contrlbutiou undor thi ■ Plan ■hall be paid to the Truet Fund to ba held, innated ancl reinnated therein, All property ancl fund■ of th• Truat l'lllld, includin& income from innata■nta ancl from all other aourca■, ■hall be ratainad for the ucludn b ■nefit of lmplo7eaa, a ■ prOYided in the Plan, ancl ahall be 1111d to p17 bmefl ti to lmplo7111 or their b■neficiarie ■, or to pa7 upen■a ■ of adaini ■tration of the Plan ancl Tru ■t Fund to the uunt not paid 11)' tha lllployar, except a ■ pro .. idod in Article XIV, Section 4, hereof. Innetmmt of the Truot Fund ahall be aubject to Title 31, Article JO, Part 7 of the Colorado 1 ... 1 ■,d Statuta ■• X-1 0532p125 ARTICLI XI Spcct ■l Governmental Rcautrcmcnt ■ s,sttan 1. Mutmum Annual Benefit Under Code Section 415 : llotvlthatandlna any other provl ■lon contalned bertln to tho controry, tho benoflta payablt to a Participant fro■ tbh Plan, ahall be aubjoct to tho ll■ltatlona of Code Sectlon 415 ln accordance v ith a. and b, below: •· P•UP•A Bcncflt Plap{■l Only: Ml// annual Penalon payable to a Partlclpant hereunder (lncludina any annual Penalon pald to aucb Partlclpant from another deflned baneflt plan of the Employer) ■hall not exceed the leuer of: 0532p:26 (1) lllnety Thou1and Dollara ($90,000) or, lf areatar, the a■ount of 1tral1ht llfe, or quallflod Jolnt and 1u"lvor annulty 1ccru1d by tho Partlcipant a ■ of the laat day of tba Li ■itatlon ?oar baainnina in 1982, vltb tha lllnoty Thouaand Dollar ($90,000) uount adjuated for increaaea in the coat of 11'1'1111, aa preacrlbed by th•• Secretary of the Treaaury or bl ■ deleaate, ef fectlve January 1 of ' oacb calendar year and applicable to the Limltatlon Year end l na vitb or vi thin auch calendar year, or (2) One bundrad percent (1001) of the Participant'• anra1~ earnina• for the three (3) conaecutive calendar yeara, while a Partlcipant in the Plan, in which bl ■ oarninaa vore tho hi&heat. For purpoaea of tbl ■ aubaectlon (2), earninaa for any Limltatlon Yeor aball be the Partlcipant'a oarned incoao, vaaea, 11larloa, and flea for profeulonal oe"lcea, and other a■ounta recelved for peraonal ae"lcea actually rendered ln the courae of eaployaent vltb the Employer (lncludlna, but not lialted to, comlulona ptld 11leap1raona, coapenaatlon for '""lcu on tba bade of a porcenta11 of proflta, comlulona on lnaurance pra■llaUI, tip• and bonuaea), pro'l'lded aucb a■ounta are actually pald or lncludlble ln aroaa lnco■e durlna eucb year , larnlna• ahall exclude the follovlna: (a) laployer contrlbutlona to a plan of deferred eoepenutlon vlllcb are not lncluded ln the Partlclpant'a aroaa lneoaa for the tueblt year ln vlllcb contrlbutad or laployor contrlbutlona under a dapliflad aaployaa penalon plan to tho extent aucb contrlbutlona ore doductlblt by the Partlclpant, or any dlatrlbutlona f r o■ a plan of deferred coep1naatlon1 (b) Allounu realized fro■ the exercl11 of a nonquallfhd atock option, or when roatrlctad etock (or proparty) bald by the Partlcipant tltber beco■aa fr11ly tranaferable or la no lonaer ■ubJect to • aubatantlal rl ■k of forfdture1 XI-1 r' ,......._ - (c) Amount• realized. from the aale, exchanae or othor dt ■poaitlon of atoclt acquired under a qualified atoclt option; and (d) Other amount ■ which received apectal tu: benefit ■, or contrtbutlona made by the Employer (whether or not under a aalary reduction aareement) toward• the purchue of an annuity deacribed in Section 403(b) of the Code (whether or not the amount ■ are actually excludable from the 1roaa income of the Participant). Except as provided in the following, which imposes additional limitation■ on the amount, payable to Participant ■ with leaa than ten (10) yeara of Service, the roreaotna limltatlona ahall not be applicable with reapect to any Participant whoae annual Penaton under thla Plan and any other defined benefit plan maintained by the Employer, 1 ■ le11 than Ten Thouaand Dollar■ ($10,000) and ouch Participant hu not at any time participated tn any defined contrlbutton plan (within the ■eantna of Section U5(lt) of the Code) maintained by the Employer. In the event that 1 participant hu been er.edited with leoa than ten (10) yeara of S."tca, the 111Ul-annual Penaton allowable under th!■ Section ahall be roducad by 11ultiplytna ouch 111Ui-annual Penaton by a fraction, the numerator of vblch 1 ■ tha number of auch Partlctpant'a year• of Se"l•• (or part there ol), but never le11 than one (1), and the denominator of which 1 ■ ten (10). The limltatlona of th!• ,ectton apply to a atralaht life annuity with no ancUlary benefit• and to an annuity that conatltutea a qualified Joint and aurvtvor annuity, provided payment beatna between 1111 aixty-two (62) and aixty-five (65). It payment ta in a dtlferent form, the amount thereof ahall be adJuated to be the Actuarial Equivalent of a ainale life annuity and the limitattona 1h1ll ba applied to ouch adJuated amount. If payment beatna before the Partlctpant'a attainment of 110 aixty-tvo (62), th, limitation in (1) above ahall be reduced on an Actuarial Bqutvalent ba1 1 ■; provided however, 1f auch payment be1tna after the Participant at l:aina •&• fifty-five (55), the reduced limit ■hall not be le11 than Seventy-Five Thouaand Dollara ($75,000) and, if payment be1tna prior to the Participant •ttaintna •&• fifty-five (55), the reduced li01it ahall not ba 1011 than tha Actuarial lquinlent of the 11vant:,-Ftn Tho11,1and Dollar ($75,000) limit for 110 fifty-fin (S5); (proTided, furthar, howanr, u to polica or firoflahtera vbo are Parttctpanta in thia Plan, in no Hent ahall auch uount be reduced below Fifty Thouaand Dollar• ($50,000), adJuatad for tncro11ea in t he coat of living, u preacrtbad by tho Socrot•ry of Trauury or hta other dal111t1). If payment b11tna ofter tho Parttctpant'a attainment of aae aixty-fhe (65), tho limitation in (1) abon allall ba tho Actuarial lqut nlent of auch aaount otharvt11 applicable at tha Participant•• attaln■ant of •&• aixty-fha (65). Tha lntereat r ace to ba uaed in dat ■r■lntnc Actuarial lqutnlanca ahall be the rate apectfted in Section l.2(b) hareof; howenr, tho lntaro ■t r1t1 ua1d in deter■lntnc an Actuarially lqutnlant aincl• life uount or an Actuutally lqutnlant pro-•&• 1txty-two (62) uount allall not bo leaa than Un parcant (5ll) and tha tnt1r11t rate uaed in dotor■tntna an Actuarially lqutnlent poat-111 atxty-fin (65) uo1mt 1hall not bo 1reeter than fi,.. percent ( 5ll). XI-2 0532p:27 In no ■"ent ■ball a Participant'• ■uilna annual Pena ion allovable ,mder tbil Section be le ■■ tban the annual of Pen■lon ( includina early Pen■ion and qualified joint and ■u"ivor annuity 11110,mt ■) duly accrued by aucb Participant (,mder Code Section 415 ll ■itatlona then in effect) a ■ of Dece■ber 31, 1982, or a ■ of December 31, 1986, whichever la areater (dilreaardin& any Plan cb&n&e ■ or co ■t-of-livina adju■tment ■ occurrina aft •r July 1, 1982, a■ to the 1982 accrued amo1mt, and May 5, 1986, a ■ to 1986 accrued amo,mt). b. Defined Benefit and Defined Contribution Plan■: If a Participant alao participates, or baa particip&ted, in one or more defined contribu- tion plan• (within the meanint of Section 415(1<) of the Code) m■lntained by tbe Employer (wbetber or not terminated), then tbe ■um of tbe Defined Bene flt Plan Fraction and Defined Contribution Plan Fraction (a■ defined below) ■ball not exceed one (1.0). Tbe Defined Benefit Fraction for any Limitation Yea, ■ball ■ean a fraction (a) tbe numerator or which la the pro.lected annual b,.neflt or the Participant 1mder the Plan (determined a ■ of tbe clo ■e of the Ll■ltatlon Year), and (b) the denominator or whlcb la th~ le ■■er of ou, hundred twenty-five percent (125:11:) of the dollar limitation ,mder Code Section 415(b)(l)(A) or one b1mdred forty percent (140:11:) of the percent ■&• limitation ,mder Code Section 415(b)(l)(B) for tbe year of determln■tl011 (taltin& Into acco,mt tbe effect of Section 235(&)(·1) of the Tax lquity and Fiacal Re ■ponaibllity Act of 1982). Tbe Defined Contribution Fraction for any Limitation Year ■ball ■ean a ~ fraction (a) the numerator of which la the ■1111 of the annual addition■ (a■ defined in Section 415(c)(2) of the Code) to the Participant'■ 1cco1mta ,mder all defined contribution plan■ ■nlntained by th■ l!aployer a ■ of th ■ clo ■e of tbe Li■itatlon Y ■ar (■ubject t~ reduction to the utent permitted ,mder tba tran ■ltlon rula in Section 235(&)(3) of the Tax lqulty and Flacal Re ■pon■lbllity Act of 1982), and (b) the denomina . ,., of which h the au■ ~f the le ■■er of one hundred tventy-flve ~ercent (L,X) of the dollar limitation ,mder Code Section 415(c)(l)(A) or on ■ b,mdred forty percent (140:11:) of the percent•&• limitation Ullder Code Section 415(c)(l)(B), for auch Limitation Year and for all prior Limitation Yeara durln& which the Participant was e,1ployed by the Employer (provided, however , at the election of the Bo.ud, the denominator ■hall be increased by u ■lna for Limitation Year■ eudlna prior to January l, 1983, an amo,mt equal to the denominator In effer.t for the Limitation Year endlna in 1982, multiplied by the tran■itlon fraction provided in Code Section 415(e)(6)(B)). If, In any Ll■ltatlon Year, tbe au■ of the Defined Bmeflt Plan Fraction and Definad Contribution Plan Fraction for a Participant would uca ■<\ one (1,0) without adjuetaent of tba amount of the ■ulau■ annual Pan■i~n that can be paic! to ■uch Participant under p ■ra1raph •• of th!■ Sactlon, tben tbe aaount of the aul■ua annual Pen■lon that can be paid to auch Participant wder paraaraph n . of th!■ Section, ■hell ba rec!ucec! to ha utent nec011&ry to rec!uce the 1u■ of tha Defined Benefit Plan Fraction XI-3 0532p:28 encl Defined Contribution Plan Fraction for 1uch Participant to on■ (l.O), or th• Board aay taltl 1uch other action a ■ will cau ■e the ,,,. to equal one (1.0) or lt11, •• lllploy11 Contribution ■, For purpoae• of thh Saction th■ litfined lantfit Plan H■iu ■hall not apply t~ a Participant'■ Accrued P ■n■ion pro•idabl1 by Participant contribution•; however, the Defined Contribution Plan U ■it1 thall apply to a Participant' 1 own contribution■, S1c.t~on 2 R11trictlon1 on Tvent-v-rtto C25l Bt&hcat Paid 1mPlov1111 Thia S1J ction 11t1 forth th ■ 11■itationa required by the Internal Rennua Se"ioa on th ■ Employer contribution■ which ■ay be uaed for the benefit ■ of certain Porticipant•. Thia Section ■hill apply to a Participant only if hi ■ anticipatad annual Penaion """M d1 One Thou1and Five Hundred Dollar ■ ($1,500) and th■ Participant va ■ ,i,~n:; the twenty-five (25) hi&heat paid Employee■ of hi ■ E■ployar at the time of ouch Employer' 1 initial 11tabli1hmant of tht Plan ("Plan" for purpo"•• of thh Section, include■ the Previou1 Plan) or th ■ data of a 1ubaequant amendli.eu t vhlch 1ub1tantially increued the po11ibilitie■ of diacri■ination II to Plan benefit ■• The limitation■ r-at forth in thi1 S1ction ■hall beco■e applicable lf1 •• the Plan h tar■inated vithln ten (10) y1ar1 aft ■r itl initial eatabli~hment , or b. the P ■n■ion of a Participant be,,0.,01 payable vlthin ten ClO) year■ after the initial eatabli1hment of th■ Plan. If 1ubparagraph b, above h applicable, th■ reatriction■ will re■ain ln eff1ct until tb1 Plan h11 b1en in effect for ten (10) yaara fro■ th■ initial a ■tablialment and, if at that t1■1, th ■ full currant cut ■ hlY& b1en fun4t4, th ■ rHtriction■ vill no longar •~ply. If subparaaraph b. 1boY1 i1 applicablo and th• full current co1t1 hln a1ot been funded after th■ Plan h11 bun in affect for ten (10) :,1ar1 fr• th• XI-4 0532p129 initial 11tablhhllent, tha li■itationa ahall continua to appl:, 1mtil tha full n currant coata have been f1mded, If tha llllployar contributiona are 1uffici111t to ■Ht tha full curr111t co■ta of tha Plan at tho 1114 of tan ( 10) yaara fro■ tha data of tha Plan' 1 initial oatablhhment, or latar il tha full curront coata ara than ■at for tbo firat time after auch ton (10) year pariod, tha uc1H of b1111fita p1y1bl1 undar tho Plan but prnioualy li11it1d by thia Saction, onr tha 111O1mta actually paid ahall ba paid in a lu■p au■ to tha retired or tan,inatod Participant, if lhina, or if d1c1111d, to hia 111111d b1111ficiar:, or eatata, If a Participant ia aubjact t o tha proTiaiona of thh S1ctio11, tha Emplo:,ar contributiona vllich u y ba uaad for hh b111afita ahall not ucaad tha ar11ter of tha follovi111 1 1. Tv111t:, fhouaand Dollara 020,000)1 or 2. An 11101mt co■putad b:, ■ultiplyina tvant:, perc111t (201) of tha firat Fifty fhouaand Dollara ($50,000) of tha IDIIUal co11pena1tio11 of tha Participant 1vera11d o.,.r hla laat fi.,. (5) yeara of participation, or actual yaara, if leH than fin (5) y11ra, b:, t'•·• 11u■b1r of y11ra b1tv1111 the data of tha initial eatabll ah■ant of tha Plan by auch lmployar and (1) tha data of tor■i111tio11 of tha Plan •• to auC:. l■plo:,ar, or (b) in thl CIH of a Participant d11crib1d in aub paraaraph b. of thh Section, tha data hla b111aflt boco■ea payable, if bafora tha data of auch tar■ination of ..ha Plan. Bov..,ar, if tha full curr111t coata of tha Plan ban not ba111 ■at b:, auch laplo:,ar OD the data daacribad ln (a) or (b) of thh aubdhlalon, vlllchnar 1a appllcabla, thlll the data of the failure to ■Ht auch c11rr111t coata 111&11 ba nbatitutad for tha data raferrad to ln (a) or (b) of thla aubdhiat•• For purpoaaa of datar■lnlna tha contributlona vlllch ■1:, ba uaad w tu IIIUflt of I Particlpant vllm (b) of thh aubdhlalOD appllu; tu Daller of :,aara taltm into 1cco1mt ■1:, be raco■putad for 11th :,aar lf Cha full c11rr111t coata of tha Plan are ■at for auch year b:, hh l■plo:,ar. Tha llaltatlona dHcribad abon 111:, be ucaedad for the purpoH of ■altlna currmt b111aflt p1y■111ta to ratlrad Partlclpanta vllo vould otharvlH be lU-5 05Upa30 ~ 1ubject to ouch re ■trictiou, provided that (1 ) the contributiou llbich u:, be u11d for any ■uch retired PlrticiplDt in accordance vith the re ■trictiou heretofore indicated ere applied either to provide • level u,o,mt of Penaion in the bade form of benefit provided for 1mdor the Plan for 1uch Participant (or a level aao,mt of Pendon in en opt ional fora of benefit, not areater in amount than the level amo,mt of Pend on ,mder the bade form of beneflt), and (2) the Pendon thu~ prov ided lo eupplamented by monthly paymente to the extent nece ■a ery to provide the f ull Peuion in the bade form called for by 't he Plen, and (3) 1uch eupplemental payment ■ ere made only if the full current coat ■ of the Plen hen been ■et or if the e11re1ete of ■uch 1uppl110ental payment ■ for e ll 1uch retired 'Parti ~ipenu doe ■ n ot exceed the •aare1et1 contribut ou already made 111.1der lho Plen in the yoor th.en current. 0 The tera "benefi ti" H UHd in th • ,Se _tion ehall not iuclude tho co ■t ■ of any death benefit ■ vith reopect to • Pa,t j :lpant befou retirement, nor tho aaount of any death benefit a 9.o.t •JlHy pay,ble after the death of • Porticipent whether 1uch deoth occur ■ be fo1·• o: after retirement. In conformity vith Section l.401-4(c)(2) of the Tre11ury Re1uletiou, if the Plen lo aaended to increeH ■ub ■tentially the extent of poeaible dhcri■inetion a ■ to contributiou and a ■ to benefit ■ actually peyoble upon oub ■equent termination of the Plan or ■ubaequent dlocontinuence of contribution■ thereUDCier , ·hen the proThiou of t~i• Section ■hall be ■ppliod to th ■ Ploa u ■o -did 10 if it vere then a nev Plen e ■tabli ■hed on the date of ■uch Ulendunt, ucept that, in place of the limit dHcribed in Section l,401-4(c)(2)(1U), of the Treuury le1ul1tiou, the llllplo:,or contributiou vhlch u:, be ,.,,~<'i for the b111efit of a Particlpent vho 1 ■ ■ubject to the pro'l'hiou of thl■ Section •hall not uceed the 1r11tHt of the follovi1111 XI-6 0532p:31 1. Th• lllplo:,u contributione (or fUlld• attributable tbarato) 'llbich voulll ban baa applied to proTid• the benafita for the Participaat if tha Plaa prior to aallldamt had bean continued vi thout chan&•, 2, Twenty Tho1111aad Dollara ($20,000), 3. Tha eia of (a) th• laplo:,,ar contributione (or fUllda attributable tharato) 'llbich voulll han ban applied to proTide benafi ta f r tba Participant Ulldar the Plaa prior to aallldaent if it had baen tanlinetad the day before th• affactha data of chan&•, aad (b) all -=t coep11tad by 1111ltipl:,illa tvent:, parcant (20ll) of tha firat rift:, Thoueaad Dollen ($50,000) of tha &1111ual c011pneation of th• Participant anra11d onr hie laet fin (5) yeara of participation, or actual yura, if laH than fin (5) yeara, by tb nuabar of yura batvan thr data of tha aaandaent of tha Plaa by tha laplv:,ar, aad: ~a) tha data of taraination of tha Plan by tha lapl~:,ar, or {b) in tha caH of a Participant daecribad in 1ub~ara1raph (b) cf thi ■ S ■ction, tba data hi ■ bnafit baco■ae payable, if b1fora tba da te of auch teraination of th ■ Plan, U-7 0532p:32 "\ AITICLI XII GuarantcH and Lhbllitin Section 1. lon1u1r1nt11 of Bmvlovmcnt= Kotblq contalnr·d in thta Plan 1hall be conatrued II a contract of employment between the lmployer IJld any lmployu, or II a ri&ht of any lmployee to b1 continu•d n t h• •ploym1nt of th• lmployer, or II a ll ■itation of th1 ri&ht of the lmployer to di1char1e any of i ti lmployeu, vi th or vi thout cauae. Section 2, lhhta tg Tru ■t 6■11ta: Ko lmployu ■hall ban any ri&ht to, or intere ■t in, any 1111t■ of the Tru1t Fund upon termination of hi ■ employment or othervi ■e, ucept II provided fro■ time to ti.Ila Ulldn thi ■ Plan, and then only to th■ utent of the benefit• payable to auch 1111,>l oyu out of. the 11aet1 of the 'Iru1t Fund. Reither the lmployer, tlla Tn11tee, nor any ■ubor of the Board ahall be llabla to any lmployaa or banaficiM";' t or ben1flt1 fro■ thi ■ Plan, ucapt for tho11 payable fro■ the Tru■t f ·•md t o • Participant in accordance vith the ter111 of the Plan IJld the Tru■t. Section 3, lon1lin1cion of Benefit ■: Bflln1fl 1 ,. ,.,~,able \Dldt.r thi ■ Plan ■hall not be 1ubject in any manner to anticipation, olllan&tion, 1al1, tranafer, a1 ■ianment 1 pledae, encabrance, charae, 1arniahmmt, execution, or lny ,f any ltind, either Yoluntary of involuntary, dthar prior to or aub11quant to, bdna racdYed by tha peroon antitlad tQ the baneflt under tha tera■ of the Plan, • atteapt to anticipate, aUanata, 11ll, tran■far, 11■1111, ple4&1, member, char&• or oth1rvi11 diapo11 of any ri&ht to ban1flt1 payable harllmd1r ahall be Yoid. The Tru1t Fund ahall not in any 111m1er be liable for, or 1ubJect to, the d1bt1, contract ■, UebUitia■, anaea•mu, or XII-1 tort■ of ~ per ■on entitled to benefit■ h1 re11Dder, Ion• of the unplld Plan benefi ta or Tru■t 11 ■-t• 1h11l b e conaidered ID HHt of the Pertlcip1Dt in the nent of hia ineolTenc:, or blllkruptc:,. lotvithatendin& the for ■1oi111, the Board uy eppron pa:,aent to ID altarnate payH baud upon ~ •qual1fild do ■eatlc relation■ order" aa defined in Code Section 414(p), and auch payment ■hall not ba doo■ad a prrh ibl.tad allanetlon of banefi ta. fflICLI xm MIA4lmt ■ S.cttqn 1, lhht tq MID41 Th• bployor ( or othor body duly authorhod by th& Eaployor) rua"H tha riaht to aalt1 froa ti.al to ti•• any u&DduDt or umdaant• to thla Plan wh i ch do not p1ral t r1nr ■lon of any part of tha Tru1t Fund to tho bployor uc1pt H prodded in Article XIV, S.ction 4, and which do not cau11 any port of tha Truat Fund to ba uaed for, or dlnrted to, 1111' purpo11 other than tho uclualn baneflt of Partlclpant1 lnclud1d in thl• Plan and which doea not, directly or indirectly, raduca any Participant'• Accruod P1n11on unlua auch aaandamt 1• r1qulred in ordor to ulntaln tho Plan•• qualified autu■ undor Coda S.ction 401(1)1 pro,,id1d, hov1nr, tut no nch ' uondaant that lncrea ■ea or d1cre1111 1>mef1t ■ uy ba uda without tha COIINllt of (1) a1:i:ty-f1H percant (651) of tho 1ffectod 1ctiH Participant ■ aa4 (U) al:i:ty-fh1 p1rcant ( 651) of tho 1ffact1d ratired and d1ferr1d YHtod Participant ■ entitlod to, or racehlna, a P1n11on beuaflt h1rallllder . XJII-1 05J2prJ5 AITJCLI UY Withdraval and T1rmtn1tton Section l, Pla I •minatlon: If permitted by Colorado Statutu and approved by tha Colora"o Fire and Police Pendon .l11ociation, tho laployer HY 1t ony ti■1, by 1doption of • re■olution, terminate thh Plon, A partial termination of tbh Plon vill occur if roquired 1111dar th• qualific1tion require■ent ■ of Section 401(1) of the Code. S1stton 2, Allocation of A111t1 Yoon Plan Ttmlnatton i Upon teratuation or partial ter■I ,. ,tion of the Plon, t.h1 ben1fi t 1 1ccru1d up t o tho dote of termination !.:, t l • afhct od Putidpont1 ond t .:•ir b1n1flciorlu, re■r o nl. ,•e~t , ~ha ll be nonforfeit1ble; hove•or, 1ctual paymen t of ~\l 1' benefit < at .•ll only be to th• extent permitted fros tho Plon 1111t ■, n., u■et ■ of 't he T111 •t Fund ■hall be allocated to pro'fid1 ■uch nonforflitabl1 benefito, to the uunt po ■aibh, in the order of pr1c1dence determined by the Board at 1,uch time • 1tc1 ion l. Manni[ o( Diatr!bution, M1Y dhtribution ofter t1r■in1tion 0€ the Plan ■■Y be ■ado 1t ony ti■e, and fro■ ti■• to ti■e, in ¥hole or in part, to tho extent .hat no dhcri■ination in value re ■ult ■, in cub, in ■ecuritie■, or othar 1■■1t1 in kind (1t flir ■■rlt1 t nlu1), in tho for■ of • Penaion or • continuod Penaion, in nontr1n11flrabl1 onnuity contr.~t■, or in inatall■ent ■, 11 tho llom, in it ■ dl ■cution, ■hall det1r■in1. In lllldq ncll dlatribution, ony and 111 d1ter■ination■, approi ■al ■, apporti01111Dt ■ Ind allotunt ■ ■hall ba ■ada by tho Board actlna undor tho infor■■tion 1uppllod by the actuarJ and ■hall b1 final and conclual H Ind not 1ubJ1ct to que■tion by 'Ill' p1r ■on. XIV-1 0532p:36 0 StcUPA 4, MPPDt ■ J1tnrnabll to th• lllpl.9DI1 In no onnt ohall tho lllplo71r rocoi n IJI)' IIIOWlt • tr~• tho t n• , ucopt ouch uount ■, if &111, 11 Ht fort h bllov1 •• Upon terain1ti ,11 of tho Plon tho lllployar •hall rac1h1 ouch uounu, if IJI)', u aay rq.1i11 1ft1r tho 11ti1f1ction of 111 li1biliti11 of tho Plon to ito Pa r tl c.\pontl IJl4 their b1n1ficiari11, IJl4 1ri1i111 01,~ of IJI)' nriotiona betveen M tual requir•ent1 ond upectod 1ctu1rial requiruont ■• b. In the IVlllt of • co,itribution 111de by tho lllplo)'ar by I 11ilt11lt1 of foct, ouch contribut>un MY b1 returned to ouch lllployar vithin on, (l) )'Hr ofter p1711ent thereo f. c. If the lllployor'o determi111tio11 letter iuued b)' tho Diltrict Diroctor of Intimal Rennue II to ouch lllployar'■ adoption of thi ■ Plan ii on initial det1rainatic11 lettlr ond i ■ to tho 1ffoct that the Plan IJl4 truat harlin ■at forth oc ,w emlD4•11 prior to tho raclipt of ■uch lattar do not 1111t tho raquiru . At, of Sectiona 401(1) IJl4 501(1) of tha Coda, tho laployar ohall bo entitied to vithdrov, vithin ono (1) )'Hr of the , date of i ■■uonce of ■uch letter, all of ita contributiona uda on 1114 • after the lfflcti'ff Date, •• thou&h it had DITlr adopt ■d thl ■ Plan 111G ' Tru■t, Sact!on 5, hplicablt L, 11 All qu11tiona arhi111 vlth r ■■pact to th provl ■lona of thl ■ Plan ■hall ba deterained by tho applicotlon of tha lava of the Stotl of Colorado, except to the utent ouch lov l ■ pt·e•pted by Pldorol 1t1tut1. XIV-2 0532p137 ,,, '· II WITDSS muor, and a■ concluain a•ldance of the adoption 0 1/ th• for11ol111 i utr1a1ont coapriaina City of Enalnood Police Peuion Plan (A• l11taUd I f fee tin January l, 1990), th• lllployer ha ■ caueed lte Hal to ba affb:od hereto and thaaa pr11ante to be duly u:acutod in iu uae and bahelf by lu proper offlcore tho u unto authori&11\ thie __ day of _____ _ 19_, CITY or mt.lWOOD, COLORADO City Clerk 0532p t 31 0 0 DATE January 15, 1990 INITIATED BY ST/J! SOURCE ISS '~ACTION. PROPOSED COUNCIL COIIIIUNICATION AGENDA ITEi! 11 (a) SUBJECT Old Hire Police Pension board H1r garet Freeman , Director of Fin ance Old Hire Police Pen1 ion Plan Restatement Adopt by Resolution t h e !.'l Hire Police Pension Plan Document . PREVIOUS COUNCIL ACT IOU Approved on January 8 , 1~9 0, on fint reading, the ordinance establishing the Old Hire Police Pension Pl an prov iding for adoption of the Plan document by resolution , STAFF ANALYSIS As was submitted last week , the restatement of the Old Hire Police Pension plan has been in draft and review for over one year , The purpose of the res tatement is to ; 1. Better document all pension provisions in order to administer the plan as consistently as possible . 2 . Provide definitive inte rpretations of the pension plan as mandated by Colorado State Statutes and the Current Eng l ewood Hun '.cipal Code . 3 . Provide technical clarifications of pensi on provisions. 4 . Provide for expanding the pension Bc,ard from three (3) to five (5) mombara. Tho current size of the board makes it diffic ult to convene meetings when necessary . 5 . Comply vith Internal Revenue Service requir.ements for pension plans (including pretax de ferment of employoa contributions). The restatement of the pens ion plan does not change any bt.nefita that ~urrentl exist . It doe ■ not change contribution rates for the employee or the City ant .t doea not chan~e the formula for calculation of the current pension l),,nefita. The purpose of the res tatement la to better administer the current pension provision■. Tho plan rutatamont haa bean reviewed and approved by the City Attorney, the Old Hire Police Pendon Board and by ,umbers of the plan . Tho amployoa elected board ■ember baa reviewed the restatement with current pl an employee ■ and has concurrence from the 11a11bar1 for adoption of th• plan. re1tata11ent .