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HomeMy WebLinkAbout2002-11-26 NEERB MINUTES• NON-EMERGENCY PENSION BOARD MEETING November 26, 2002 A telephone poll was done by the Recording Secretary of the Englewood Non-Emergency Pension Board. The IRS requires the plan document to be amended to comply with EGTRRA by December 31, 2002. The Board was asked to consider amending the plan document to comply. Members: Ayes: Nays: Unavailable: The motion carried. Carol Wescoat Recording Secretary Brandon Williams, Chairperson, Council Appointee Gary Bowman, Council Appointee Ernestine Campbell, Employee Representative LeRoy Da Vault, Council Appointee Frank Gryglewicz, Director of Financial Services Brad Hagan, Employee Representative John Moore, Council Member Williams, Bowman, Da Vault, Gryglewicz, Hagan, Moore None Campbell ' EGTRRA Amendments to C ity of Englewood NonEmergency Retirement Plan and Tmst 1. Add the following to the end of Section 3-4-2-2.C.3.b., effective December 31 , 2002 : In the case of distributions with ammity starting dates on or after December 31 , 2002 , the mortality table used to adjust any benefit or limitation under Code section 415(b)(2 )(B), (C) or (D) as set forth in Section 3-4-16-3 of the Plan is the table prescribed b y Rev . Rul. 2001-62. 2. Add the following to the end of Section 3-4-2-2.I, effective January 1, 2002: For purposes of calculating Compensation on or after January 1, 2002 , the limitation under Code section 40l(a)(l 7) is increased to $200 ,000 , as adjusted . 3. Replace the second and third sentences of Section 3-4-16-3.A.6 ., with the following , effective January 1, 2002: For benefits paid after December 31 , 2001 , if the annual benefit of the Participant commences before the Paiiicipant's age 62, the foregoing limitation shall be reduced for each month by which benefits commence before the month in which the Participant attains age 62. The annual benefit limitation beginning prior to age 62 shall be determined as the lesser of the equivalent annual benefit computed using the Plan's interest rate and mortality table (or other tabular factor) equivalence for early retirement benefits, and the equi valent annual benefit computed using a five percent interest rate and the applicable mortality table as prescribed by Rev. Rul. 2001-62. Any decrease in the adjusted defined benefit dollar limitation determined in accordance with this provision shall not reflect any mortality decrement to the extent that benefits will not be forfeited upon the death of the Participant. 4. Add the following to the end of the definition of "Eligible Rollover Distribution" in Section 3-4-17-3-B.1, effective January 1, 2002 : For distributions on or after January 1, 2002, a portion of distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income . However, such portion may be paid only to an individual retirement account or annuity described in section 408(a) or (b) of the Code, or to a qualified defined contribution plan described in section 40l(a) or 403(a) of the Code that agrees to separately account for amounts so transferred , including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible . 5. Add the following to the end of the definition of "Eligible Retirement Plan" in Section 3-4-17-3-B.2, effective January 1, 2002: Effective January 1, 2002, an eligible retirement plan shall also mean an ammity contract described in Code section 403(b) and an eligible plan under Code section 457(b) which is maintained by a state, political subdivision of a state, or 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. The definition of eligible retirement plan shall also apply in the case of a distribution to a surviving spouse, or to a spouse or former spouse who is the alternate payee under a qualified domestic relation order, as defined in Code section 414(p). 6. Replace the second paragraph of Section 3-4-7-8.M.6 with the following, effective January 1, 2003: Distributions shall be made in accordance with the requirements of regulations under Code section 40l(a)(9), including minimum incidental death benefit requirements of those regulations. Non-Emergency Pension Board Meeting 3