HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/05/2002 - RESOLUTION 2002-103 ADOPTING THE SECOND AMENDMENT AGENDA ITEM SUMMARY ITEM NUMBER: 22
FORT COLLINS CITY COUNCIL DATE: November 5, 2002
110 STAFF:
Alan Krcmarik
SUBJECT:
Resolution 2002-I03 Adopting the Second Amendment to the City of Fort Collins General
Employees' Retirement Plan as Amended and Restated Effective December 31, 2001.
RECOMMENDATION:
Staff and the General Employees' Retirement Committee recommend adoption of the Resolution.
FINANCIAL IMPACT:
The proposed change to the Restated Plan does not have direct financial impacts. The amendment
will allow the Plan to maintain its tax qualified status under Internal Revenue Code regulations.
EXECUTIVE SUMMARY:
The City of Fort Collins General Employees' Retirement Plan (the "Plan") provides retirement
benefits for approximately 124 retirees and beneficiaries. The Plan has 482 active members and
former members that have vested benefits as of the last valuation report.
In November 2001,the General Employees' Retirement Committee,with assistance from the Plan's
actuary and special legal counsel, identified and studied a number of changes to the Plan. The
changes clarified,explained,and redefined some of the provisions of the Plan to conform to Internal
Revenue Code changes, provisions of the Colorado Revised Statutes, and otherwise incorporate
certain administrative practices. After restatement of the Plan,staff applied for tax qualified status
from the Internal Revenue Service. The tax qualification status has been approved,but the IRS has
requested that one provision of the Plan be further modified. This Resolution amends Section 2.g.
of Article II of the Plan to meet the required IRS guidelines. The modification is to the definition
of compensation. Staff believes that the City does not have any employees that are affected by the
requested wording. Compliance with the IRS request will maintain the tax qualified status of the
Plan.
. RESOLUTION 2002-103
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING THE SECOND AMENDMENT TO
THE CITY OF FORT COLLINS GENERAL EMPLOYEES'
RETIREMENT PLAN AS AMENDED AND RESTATED
EFFECTIVE DECEMBER 31, 2001
WHEREAS,the City Council adopted,effective January 1, 1971,a qualified defined benefit
pension plan known as the City of Fort Collins Employees' Retirement Plan (the "1971 Plan"), for
the purpose of providing retirement benefits for certain of its employees; and
WHEREAS,the City Council has amended the 1971 Plan from time to time and restated the
1971 Plan to incorporate all prior amendments and other changes required by law effective
December 31, 2001 (the "2001 Restated Plan"), via Section I of Resolution 2001-157; and
WHEREAS, the City Council adopted the first amendment to the 2001 Restated Plan
effective January 1, 2002, via the adoption of Section 2 of Resolution 2001-157; and
WHEREAS,the General Employees'Retirement Committee(the "Committee"), as created
by and functioning pursuant to Chapter 21, Article V of the City Code, has reviewed the current
provisions of the 2001 Restated Plan as amended, and has determined that the adoption of a second
amendment is necessary in order to maintain the 2001 Restated Plan's compliance with Internal
. Revenue Code Regulations and to obtain a favorable determination letter from the Internal Revenue
Service; and
WHEREAS,the Committee has recommended that City Council adopt the following second
amendment to the 2001 Restated Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS, COLORADO that the City of Fort Collins General Employees' Retirement Plan as
amended and restated December 31, 2001, is amended,effective January 1,2002, by amending the
definition of"Compensation" at Article 11, Section 2.g. to read as follows:
(g) "Compensation" means the total cash remuneration paid to an Employee for
a calendar year by the City for personal services including performance pay as
reported on the Employee's income tax withholding statement or statements (Form
W-2,or its subsequent equivalent),excluding bonuses,compensatory time'
overtime pay, lump-sum payments for accrued vacation time,
worker's compensation,taxable fringe benefits including life insurance in excess of
$50,000 and any contribution by the City under this 9P
WPlan, or
the like-, but including
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6�Eh� ,�a4tip�tr$ua�}tte��a�}�reduchon agreement which were
�� 1�) ipfa .e's gross tncomeChal�Lngt be included in Compensation
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The amount of Compensation for purposes of the Plan during any Plan Year
shall not exceed$200,000, subject to the cost-of-living adjustments in accordance
with IRS Code Section 415(d), as amended and then in effect.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this
5th day of November, A.D. 2002.
Mayor
ATTEST:
City Clerk
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