HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/16/1999 - FIRST READING OF ORDINANCE NO. 47, 1999, AMENDING AGENDA ITEM SUMMARY ITEM NUMBER: 19
DATE: March 16, 1999
• FORT COLLINS CITY COUNCIL
STAFF: Alan Krcmarik
SUBJECT:
First Reading of Ordinance No.47, 1999,Amending Section 21-87 of the City Code and Article XI
of the General Employees Retirement Plan Concerning Membership in the General Employees
Retirement Committee.
RECOMMENDATION:
Staff and the General Employees Retirement Committee recommend adoption of the Ordinance on
First Reading.
FINANCIAL IMPACT:
The Ordinance does not have any direct financial impact. One of the key issues for retirees is the
need for cost of living adjustments. The General Employees Retirement Committee will provide a
recommendation to the Council on this issue in the next budget process.
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EXECUTIVE SUMMARY: +
Since the creation of the General Employees Retirement Plan in 1971,a five member board has been
responsible for oversight and implementation of the Plan. None of the slots for the committee are
specifically reserved for a retiree from the Plan. At the end of 1998,368 active members of the Plan
decided to convert to a money purchase plan. Beginning in 1999,all new hires at the City will enroll
in the money purchase plan. The ratio of retirees to active members has changed significantly over
the past few years. In 1998, there were 839 active members compared to 96 retires and 11
beneficiaries, a ratio of 8 to 1. After the partial conversion, there are approximately 560 active
members and the 96 retirees and 11 beneficiaries. The General Employees Retirement Committee
has discussed the situation and strongly believes that the retirees are a significant portion of the Plan
and they should be represented on the Committee. The Resolution would add one position on the
Committee to be filled by a retired member of the Plan. The Resolution amends both the City Code
provisions and the Plan.
ORDINANCE NO. 47, 1999
• OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING SECTION 21-87 OF THE CITY CODE AND
ARTICLE XI OF THE GENERAL EMPLOYEES RETIREMENT
PLAN CONCERNING MEMBERSHIP IN THE GENERAL
EMPLOYEES RETIREMENT COMMITTEE
WHEREAS, the City of Fort Collins General Employees Retirement Committee (the
"Committee") has reviewed the Committee membership provisions set forth in the City of Fort
Collins General Employees Retirement Plan(the"Plan")and has recommended to the City Council
that such provisions be amended so as to increase the Committee membership by adding a retired
member to the Committee; and
WHEREAS, the Committee has expressed its belief that the Committee is in need of
representation from the retired members of the Plan who are receiving monthly retirement benefits
from the Plan, as retired members will make up an increasing percentage of the Plan members now
that the Plan is no longer receiving new members; and
WHEREAS, the City Council wishes to adopt the recommendation of the Committee; and
WHEREAS, Article XIV, Section 2 of the Plan authorizes the City Council to amend the
terms of the Plan.
• NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That Section 21-87(a) of the Code of the City of Fort Collins is hereby
amended to read as follows:
(a) The committee shall consist offi,,(5)six(6)members. The Director
of Finance shall serve as a standing member of the committee,and the remainingfom
(4) five-.(5) members shall be appointed by the City Council. Of the appointed
members,three(3)shall be employees who are covered by the retirement plan. The
fourth appointee shall either be an employee who is covered by the retirement plan
or an individual who is a tax-paying elector of the city. The fifth appointee shalkbe
a retired member ofthe!plari who is receiving a monthly retirement benefit front,&
plan.
Section 2. That Section 1 of Article XI of the City of Fort Collins General Employees
Retirement Plan is hereby amended to read as follows:
Section 1. Retirement Committee. A Retirement Committee composed
of€n+e six members shall administer the Plan. The City's Director of Finance shall
be a member of the Committee and shall keep all records and minutes of meetings.
The other €ettr five members of the Committee shall be appointed by the City
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Council to serve at its pleasure and for overlapping terms designated by the City
Council. At least three of said appaimed members shall be Employees who ftre
eavere4 by+e Plan. if the remaining appairitee is riot an Fmnpieyee eoyere4 by the
Plan, he simH be ft taft paying eleeter of the . Ofthe five°appoihteti members,
threeishall be Employee&caye*l*the.Plaanthe fourtli'shallUeithera�,Employee
wh94j*covere&1by the:)Klan or attaxtpayingelector oftheCity and the Nffth shall be
a Retired Member ofthe!Planwhc�yeceivingamonthlyreturementbenefitfromthe
Plan:
A majority of the €w six members of the Committee shall constitute a
quorum. All actions taken by the Committee shall be approved by a majority vote
of all of the members of the Committee present.
No member of the Committee shall receive compensation for his or-her
service on the Committee but a member may be reimbursed for reasonable expenses
incurred in connection with his orsher duties as a member of the Committee.
Introduced, considered favorably on first reading, and ordered published this 16th day of
March, A.D. 1999, and to be presented for final passage on the 20th day of April, A.D. 1999.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 20th day of April,A.D. 1999.
Mayor
ATTEST:
City Clerk
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