HomeMy WebLinkAbout2002-12-13 FPB MINUTESj
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FIREFIGHTERS PE SION BOARD MEETING
December 13 , 2002
A telephone poll was done by the Recording Secretary for the Englewood Firefighters
Pension Board.
The IRS requires the Plan Document to be amended to comply with the Economic
Growth and Tax Relief Reconciliation Act of2001 (EGTRRA) by December 31, 2002.
The Board was asked to consider Amendment Three of the Plan Document.
Members:
Ayes:
Nays:
U navailable:
The motion carried.
Carol Wescoat
Recording Secretary
Ken Holland, Chairperson , Employee Representative
Michael Ballinger, Employee Representative
Frank Gryglewic z, Director of Finance and Administrative Services
Gary Kasson , Council Appointee
Bev Bradshaw , Mayor
Jay Seay, Employee Representative
Holland, Bradshaw , Gryglewicz, Kasson , Seay
None
Ballinger
THIRD AMENDMENT
TO THE
CITY OF ENGLEWOOD FIREFIGHTERS PENSION PLAN
As Amended and Restated, Effective January 1, 1999
WHEREAS, the City of Englewood (the "Employer"), established the City of
Englewood Firefighters Pension Plan ("Pension Plan"), effective as amended and restated
January 1, 1999 ; and
WHEREAS, pursuant to Aiiicle XIII of the Plan, the Employer has the authority
to amend the Plan, subject the consent of at least sixty-five percent (65%) of the active
Participants at the time of amendment; and
WHEREAS, the Employer deems it advisable to amend the Plan to comply with
the tax law changes from the Economic Growth and Tax Relief Reconciliation Act of
2001 (EGTRRA); and
NOW, THEREFORE, the Plan is hereby amended, effective January 1, 2002 as
follows:
1. ARTICLE I. PURPOSE AND DEFINITIONS, Section 2.e . Compensation
shall be amended in its entirety to read as follows:
e. Compensation: All base pay (as defined in the City of Englewood's
Personnel Policy and Procedures) received by the Pa1iicipant for his
Covered Employment, including longevity pay, holiday pay, sick pay, and
vacation pay taken in the normal course of employment , and shift
differential , but Compensation shall exclude compensation for overtime
(or compensation in lieu of overtime required under the Fair Labor
Standards Act), clothing allowance, lump-sum amounts paid in lieu of
accumulated vacation, holidays, and sick leave, and compensation imputed
as a result of the Participant's use of the Employer's automobile. A
Participant's Compensation shall include any amounts deferred as to such
Participant under Code Section 125, Code Section 132(f)(4), 457 or -l:lfltief
Code Section 414(h), except to the extent such amounts would be
excluded under the immediately preceding sentence. Compensation taken
into account under the Plan shall not exceed $200,000, adjusted for
changes in the cost of living as provided in Code Section 415(d), for the
purpose of calculating a Participant's Accrued Pension (including the right
to any optional benefit provided under the Plan) for any Plan Year
commencing after December 31, 1983.
In addition to other applicable limitations set forth in the Plan, and
notwithstanding any other provision of the Plan to the contrary, for Plan
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Years beginning on or after January 1, 1996 , the annual compensation of
each "Noneligible Participant" taken into account und er the Plan shall not
exceed the OBRA '93 annu al compensation limit. The OBRA '93 annual
compensation limit is $150 ,000 , as adjusted b y the Commissioner for
increases in the cost of living in accordance with Code Section
40l(a)(l 7)(B). For Plan Years beginning on or after Januarv 1, 2002.
the annual compensation of each "Noneligible Participant" taken into
account under the Plan shall not exceed $200.000. as indexed for cost-
of-living increases in accordance with Code Section 401(a)(l 7)(B).
The cost-of-living adjustment in effect for a calendar year applies
to any period , not exceeding 12 months , over which compensation is
determined (determination period) beginning in such calendar year. If a
determination period consists of fewer than 12 months, the OBRA '93
annual compensation limit will be multiplied by a fraction, the numerator
of which is the number of months in the determination period, and the
denominator of which is 12 . A "Noneligible Participant" is any
Participant who first became a Participant in the Plan during a Plan Year
beginning on or after January 1, 1996.
Effective January 1, 1989, through December 31 , 1996, in determining the
Compensation of a Participant for purposes of this limitation, the rules of Code
Section 414(q)(6) shall apply, except in applying such rules, the term "famil y " shall
include only the spouse of the Participant and any lineal descendants of the
Participant who have not attained age 19 before the close of the year, effective
January 1, 1989 through December 31, 1996, if, as a result of the application of such
rules the adjusted annual Compensation limitation is exceeded then the limitation
shall be prorated among the affected individuals in proportion to each such
individual's Compensation as determined under this Section prior to the application
of this limitation.
2. ARTICLE XI. Special Governmental Requirements, Section
l.a.(l) shall be amended in its entirety to read as follows :
Section 1. Maximum Annual Benefit Under Code Section 415:
Notwithstanding any other provision contained herein to the contrary, the
benefits payable to a Participant from this Plan shall be subject to the
limitations of Code Section 415 in accordance with a. and b . below :
a. Defined Benefit Plan(s) Only: Any annual Pension payable to a
Participant hereunder (including any annual Pension paid to such Participant from
another defined benefit plan of the Employer) shall not exceed the lesser of:
(1) Ninety One Hundred Sixty Thousand Dollars
(S90 ,000)($160.QQO) or , if greater, the amount of straight life, or qualified
joint and survi v or annuity accrued by the Participant as of the last da y of
Firefi ghters Pe ns ion Bo a rd
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the Limitation Year beginning in 1982, with the Ninety One Hundred
Sixtv Thousand Dollar ($90,000) Dollars ($160.000) amount adjusted for
increases in the cost of living, as prescribed by the Secretary of the
Treasury or his delegate, effective January 1 of each calendar year and
applicable to the Limitation Year ending with or within such calendar year,
or
3 . ARTICLE XV. DIRECT ROLLOVERS , Section 2.b., Eligible Retirement
Plan, shall be revised in its entirety to read as follows:
b. Eligible R etirement Plan: An Eligible Retirement Plan is an individual
retirement account d escribed in Code Section 408(a), an individual retirement
ann uity described in Code Section 408(b ), an annuity pl an described in Code
Section 403(a), et= a qualified trust described in Code Section 40l(a), that accepts
an annuitv contract described in Code§ 403(b). or an eligible plan under
Code § 457(b) which is maintained by a state, political subdivision of a state.
or any agency or instrumentality of a state or political subdivision of a state
and which agrees to separately account for amounts transferred into such
plan from this Plan. For the purposes of Direct Rollovers. Eligible
Retirement Plans include onlv those that will accept the Distributee 's Eligible
Rollover Distribution. Ho 1.vever, in the case of an Eligible Rollover Distribution to
the surviving spouse, an Eligible Retireme nt Plan is an individual retirement
account or individual retirement annuity.
Firefighters Pension Board
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