HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/02/2003 - RESOLUTION 2003-100 AMENDING THE SERVICE DIRECTORS AGENDA ITEM SUMMARY ITEM NUMBER: 27
FORT COLLINS CITY COUNCIL DATE: September 2, 2003
FROM:
Alan Krcmarik
SUBJECT:
Resolution 2003-100 Amending the Service Directors' Pension Plan to Adjust the Contribution
Rate of the City Manager.
RECOMMENDATION:
Staff recommends adoption of Resolution.
EXECUTIVE SUMMARY:
The proposed change to the Service Directors' Pension Plan requires the City Manager to
increase the amount of his personal contributions to the Plan. There is no additional cost to the
City.
The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) introduced new
retirement plan limits. Under EFTRRA, the maximum annual contribution to an individual's
defined contribution account is $41,000 in 2003. The City's defined contribution retirement
plans are implemented through the ICMA Retirement Corporation (RC or the Retirement
Corporation). The City Manager has requested that the City's plan for Service Directors'
Pension Plan (Plan No. 8530-19) be amended to require contributions by the City Manager to be
equal to the new limit. Pursuant to Section VI of the Third Addendum to the City Manager
Employment Agreement, the City Council has agreed to accommodate the request of the City
Manager to increase the amount of his mandatory contributions to the Plan. Substantive changes
to the Plan require approval by the City Council. If adopted, this Resolution would authorize the
change requested by the City Manager. Upon adoption by Council, staff will take the
appropriate actions to effect the change. This action does not increase the City's financial
liability.
• RESOLUTION 2003-100
OF THE COUNCIL OF THE CTTY OF FORT COLLINS
AMENDING THE SERVICE DIRECTORS PENSION PLAN
TO ADJUST THE CONTRIBUTION RATE OF THE CTTY MANAGER
WHEREAS, the City Manager is currently a participant in the City of Fort Collins,
Colorado Service Director Pension Plan #8530-19 ("Plan"), administered by the ICMA
Retirement Corporation; and
WHEREAS, the City Manager has requested that the Plan be amended to provide for a
mandatory, pre-tax, employee contribution in an amount that will maximize his contribution
into his participant account; and
WHEREAS, Section VI of the Third Addendum to the City Manager Employment
Agreement, dated January 10, 2001, specifically provides that the City Council shall
accommodate the request of the City Manager to increase the amount of employee contributions
to said Plan; and
WHEREAS, the City Council believes that it is in the best interests of the City to amend
the Plan to increase the mandatory employee contribution that shall be made by the City
Manager without increasing the 10% employer contribution currently being made into his
participant account.
• NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CrrY OF
FORT COLLINS as follows:
Section 1. That the Service Director Pension Plan #8530-19 is hereby amended to
provide that the City shall contribute on behalf of the City Manager 10% of earnings for the Plan
Year and the City Manager shall contribute the maximum amount allowed by the Internal
Revenue Code Regulations, subject to the limitations and definitions set forth in the Plan.
Section 2. That the City Manager shall execute on behalf of the City an amendment to
the Adoption Agreement for the City of Fort Collins, Colorado Service Director Pension Plan
#8530-19 to effectuate the provisions of Section 1, above.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins held
this 2nd day of September, A.D. 2003.
Mayor
ATTEST:
. City Clerk