HomeMy WebLinkAbout1992-056-04/07/1992-GENERAL EMPLOYEES RESTATED RETIREMENT PLAN RESOLUTION 92-56
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING THE CITY OF FORT COLLINS GENERAL
EMPLOYEES RETIREMENT PLAN (AS AMENDED AND
RESTATED EFFECTIVE JANUARY 1 , 1992)
WHEREAS, the terms of the City of Fort Collins General Employees Retirement
Plan (as restated effective January 1, 1990) , hereinafter the "Plan, " have been
reviewed by its Retirement Committee; and
WHEREAS, the scope of the review included incorporating new tax laws
promulgated by the Internal Revenue Service since the 1990 restatement; bringing
the Plan' s prohibition against alienation of trust assets into conformance with
Section 24-54-111, C.R.S. , adding language to address the coverage of members who
qualify for disability due to job-related incidents and injuries; and
incorporating certain administrative practices which are followed; and
WHEREAS, the amendments reflected in the January 1992 restatement are
generally described as follows:
1 . The effective date of the restatement shall be changed from
January 1 , 1990, to January 1, 1992.
2. Article 1, Purpose, has been amended to add an affirmative
statement of applicable law that the Plan is not subject to the
requirements of the Employee Retirement Income Security Act of 1974
because it is a governmental plan.
3 . Article II, Definitions, Section 2:
A. Subsection (i ) expands the definition of "Covered
Employment" to include certain current Members of the
Plan who chose to remain in the Plan despite a change in
their position status from classified to unclassified.
B. Subsection (k) expands the definition of "Disability" so
that it conforms to the City's stated intention to
equitably apply the provisions of the Plan to Members
with job-related disabilities as well as those disabled
due to reasons unrelated to employment.
C. Subsection (1 ) adds a new definition for "Disability
Benefits" in order to identify the three sources of such
benefits which will be recognized under this Plan.
D. Subsection (n) expands the definition of "Employee" to
include those employees who chose to remain in the Plan
despite a change in their position status from
classified to unclassified.
E. Subsection (s) expands the definition of "Member" to
include those who qualify for Disability under
Subsection (k) .
4. Article III, Membership, Section 5 has been deleted since the
positions named are not classified positions and, therefore, such
employees are not included within the coverage of this Plan..
5. Article IV, Credited Service:
A. Section 1 has been expanded to specify the circumstances
under which a Member who becomes disabled may continue
to accrue service credits.
B. Section 2 has been amended to extend the length of time
which may elapse between leaving City employment and
returning from one (1) year to five (5) years. A former
plan member who returns within this period may add the
service time earned earlier to that earned after
returning.
6. Article V, Retirement Dates, Section 4, has been amended to
specify that a member' s salary at the date of disablement will be the
basis for benefit calculation in the case of certain members who leave
employment due to a disability.
7. Article VI, Retirement Benefits, Section 4, has been amended
to incorporate the practices of paying a partial monthly benefit when a
recipient dies during a monthly interval and making the first monthly
payment at the end of the month in which retirement occurs.
8. Article IX, Severance Benefits, Section 2, has been amended to
delay the schedule for payment of this single sum from the employment
termination date until one (1) year after that date.
9. Article XIII , Retirement Benefits and Rights Inalienable,
Section 1 , has been amended to limit payment of benefits pursuant to a
Qualified Domestic Restraining Order or other court order to orders for
payment of child support.
WHEREAS, the Retirement Committee is recommending these amendments to
Council for adoption; and
WHEREAS, the Council wishes to adopt the recommendation of the Retirement
Committee; and
WHEREAS, Article XIV, Modification or Termination of Plan, Section 2,
authorizes the City Council to amend the terms of the Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS
that the City of Fort Collins General Employees Retirement Plan (As Amended and
Restated effective January 1 , 1992) which is attached hereto and made a part
hereof, be and the same is hereby adopted.
Passed and adopted at a regular meeting of the Council of the City of Fort
Collins held this 7th day of April , A.D. 1992.
Mayor
ATTEST:
City
CITY OF FORT COLLINS '
GENERAL EMPLOYEES
RETIREMENT PLAN
As Amended and Restated Effective January 1, 1992
P06PDOUMP1:1
City of Fort Collins' General Employees Retirement Plan
TABLE OF CONTENTS
Page No.
ARTICLE I Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1
ARTICLE 11 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-1
1. Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-1
2. Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-1
3. Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-6
ARTICLE III Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-1
1. Employees on January 1, 1971 . . . . . . . . . . . . . . . III-1
2. Employees Hired After December 31, 1970 . . . . . . III-1
3. Termination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-1
4. Withdrawal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-1
Article IV Credited Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-1
1. Credited Service . . . . . . . . . . . . . . . . . . . . . . . . . . IV-1
2. Breaks in Service . . . . . . . . . . . . . . . . . . . . . . . . . IV-2
3. Effect of Other Plans . . . . . . . . . . . . . . . . . . . . . . IV-3
4. Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-3
ARTICLE V Retirement Dates . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-1
1. Normal Retirement . . . . . . . . . . . . . . . . . . . . . . . . V-1
2. Early Retirement . . . . . . . . . . . . . . . . . . . . . . . . . V-1
3. Delayed Retirement . . . . . . . . . . . . . . . . . . . . . . . V-1
4. Disability Retirement . . . . . . . . . . . . . . . . . . . . . . V-2
5. Retirement Date . . . . . . . . . . . . . . . . . . . . . . . . . . V-3
ARTICLE VI Retirement Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . VI-1
1. Normal or Delayed Retirement . . . . . . . . . . . . . . . VI-1
2. Early Retirement . . . . . . . . . . . . . . . . . . . . . . . . . VI-1
3. Disability Retirement . . . . . . . . . . . . . . . . . . . . . . VI-1
4. Payment of Benefits . . . . . . . . . . . . . . . . . . . . . . . VI-2
5. Minimum Periodic Payment . . . . . . . . . . . . . . . . . VI-2
6. Accrued Credits and Vested Benefits
Under the Previous Plan Preserved . . . . . . . . . . . . VI-2
7. Increased Benefits for Retired Members
and Beneficiaries as of July 1, 1990 . . . . . . . . . . . . VI-3
(i)
F06PDO5/.WP1:1
City of Fort Collins' General Employees Retirement Plan
TABLE OF CONTENTS (continued)
Page No.
ARTICLE VII Optional Forms of Benefits . . . . . . . . . . . . . . . . . . . . . VII-1
1. General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-1
2. 100% Joint and Survivor Benefit . . . . . . . . . . . . . . VII-1
3. 50% Joint and Survivor Benefit . . . . . . . . . . . . . . . VII-2
4. 120 Months Certain and Life Benefit . . . . . . . . . . VII-2
5. . Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-2
ARTICLE VIII Death Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VIII-1
1. Death of an Active Member, a Disabled
Member, or a Vested Member Prior to Normal
Retirement Date . . . . . . . . . . . . . . . . . . . . . . . . . . VIII-1
2. Death of an Active Member Between
Normal and Delayed Retirement Dates . . . . . . . . . VIII-2
3. Death of a Re:fired Member . . . . . . . . . . . . . . . . . VIII-2
4. Uniform Simultaneous Death Act . . . . . . . . . . . . . VIII-2
ARTICLE IX Severance Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . IX-1
1. Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IX-1
2. Six or More Years of Service . . . . . . . . . . . . . . . . IX-1
ARTICLE X Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X-1
1. Member Contributions . . . . . . . . . . . . . . . . . . . . . X-1
2. City Contributions . . . . . . . . . . . . . . . . . . . . . . . . X-1
3. Application of Forfeitures . . . . . . . . . . . . . . . . . . . X-1
ARTICLE XI Administration of the Plan . . . . . . . . . . . . . . . . . . . . . XI-1
1. Retirement Committee . . . . . . . . . . . . . . . . . . . . . XI-1
2. Management of the Plan . . . . . . . . . . . . . . . . . . . . XI-1
3. Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . XI-2
ARTICLE XII Method of Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . XII-1
1. Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XII-1
2. Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XII-1
3. Duties of the Funding Agent . . . . . . . . . . . . . . . . . XII-1
4. Investment Powers . . . . . XII-2
(Il)
F06PD05I.WP1:3
City of Fort Collins' General Employees Retirement Plan
TABLE OF CONTENTS (continued)
o.
ARTICLE XIII Retirement Benefits and Rights Inalienable . . . . . . . . . XIII-1
1. Inalienability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XM-1
2. Bankruptcy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XIII-1
ARTICLE )UV Modification or Termination of Plan . . . . . . . . . . . . . . XTV-1
1. Expectation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X11V-1
2. Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XTV-1
3. Approval Under the Internal Revenue Code . . . . . XIV-1
4. Discontinuance . . . . . . . . . . . . . . . . . . . . . . . . . . . XIV-2
S. Termination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XTV-2
6. Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XIV-2
ARTICLE XV Benefit Restrictions on Early Termination . . . . . . . . . . XV-1
1. Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XV-1
2. Members Affected by Section 1 . . . . . . . . . . . . . . . XV-2
3. Amendment of the Plan . . . . . . . . . . . . . . . . . . . . XV-2
ARTICLE XVI Limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XVI-1
1. Reemployment of Former Members . . . . . . . . . . . XVI-1
2. Reemployment of Retired Members . . . . . . . . . . . XVI-1
3. Limitation of Benefits . . . . . . . . . . . . . . . . . . . . . . XVI-1
4. Consolidation or Merger . . . . . . . . . . . . . . . . . . . . XVI-4
P06PDO54.WP1:4
ARTICLE I
Purpose
Effective as of January 1, 1992, the City Council of the City of Fort Collins
adopted the amended and restated Plan (as defined in Section It. of Article II), as set
forth herein, to continue and replace the Plan previously in effect. T'he Plan and
Retirement Fund are intended to meet the requirements of Sections 401(a) and 501(a)
of the Internal Revenue Code of 1986, as amended.
The Plan and the separate related Retirement Fund forming a part hereof were
established and shall be maintained for the exclusive benefit of the eligible employees of
the City of Fort Collins and their beneficiaries. No part of the Retirement Fund can
ever revert to the City except as hereinafter provided, or be used for or diverted to
purposes other than the exclusive benefit of the employees of the City and their
beneficiaries.
This amendment and restatement of the Plan shall not, in any way, affect the
rights of former Employees who participated in said Plan and who either retired or
otherwise terminated their employment prior to January 1, 1992. The rights, if any, of
such former Employees and of their beneficiaries and the amounts of their benefits, if
any, shall continue to be governed by the provisions of the Plan as it was in effect on
December 31, 1991, or the date, if earlier, of their retirement or termination of
employment, unless specifically provided for otherwise herein, or as the result of future
amendments to this restated Plan.
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F06PDO54.WP1:5
This Plan is a governmental Plan established pursuant to Section 414(d) of the
Internal Revenue Code of 1986, as amended. As such, it is not subject to the
requirements of the Employee Retirement Income Security Act of 1974.
I-2
P06PDO54.WP1:6
ARTICLE II
Definitions
Section 1. Name. The retirement income plan as set forth in this Ordinance
shall be known as the City of Fort Collins' General Employees Retirement Plan (As
Amended and Restated Effective January 1, 1992) and is hereinafter referred to as the
Plan.
Section 2. Definitions. Unless the context otherwise requires, the definitions
and general provisions contained in this Section govern the construction of this restated
Plan.
a. "Accrued Benefit" means the benefit determined under the Plan
expressed in the form of a monthly single life annuity, commencing at Normal
Retirement Date.
b. "Actuarial (or Actuarially) Equivalent" means equality in value of
the aggregate amounts expected to be received under different forms of payment
based on interest rate and mortality assumptions as defined below unless
otherwise specifically provided in the plan:
(1) Interest rate assumption for alternative periodic benefits.
The Interest rate used for purposes of computing alternative periodic forms
of benefits shall be 7.5%.
(2) Interest rate assumption for single-sum payments. The
interest rate used for purposes of computing single-sum payments shall be
the immediate annuity rate (subject to adjustment as required for deferred
annuities) used by the Pension Benefit Guaranty Corporation as of the
January 1 coincident with or preceding the date as of which the amount of
the alternative form of benefit is being determined hereunder.
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P06PD054.WP1:7
(3) Mortality assumption. The mortality assumption for
calculations based upon the mortality of an Member or Beneficiary shall be
a unisex rate that is 50% male, 50% female, taken from the 1983 Group
Annuity Table. Said mortality assumption shall be used until changed by
Plan amendment.
C. "Beneficiary" means the person or persons entitled to receive
benefits hereunder upon the death of a Member or former Member, pursuant to
Section 5 of Article VII hereof.
d. it " shall mean the City of Fort Collins, State of Colorado.
e. "City Council" shall mean the City Council of the City.
f. "Code" means the Internal Revenue Code of 1986, as amended.
g. "Committee" or "Retirement Committee" means the Committee
appointed by the City Council and charged with the general administration of the
Plan
h. "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 and any contribution by the City under this Plan, or the
like, but including any compensation that is deferred under Code Section 457.
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
Code Section 415(d), as amended and then in effect.
i. "Covered Employment" means the employment categories for which
the Plan is maintained, more particularly described as follows:
(1) all nonfirefighters who perform clerical and technical duties
for Poudre Fire Authority;
(2) any employment with the city in a classified position as
defined by the City Personnel Rules and Regulations, excluding Police
Officers, Paid Firefighters, Emergency Services Dispatchers (police and
fire);
II-2
F06PD054.WPIA
(3) any Member in the Plan as defined by subsection (3) of
Article H, Section 2.n., Employee.
Excluded are leased employees within the meaning of Code Section 414(n).
j. "Credited Service" means the period of service rendered by an
Employee as a Member, for which credit is allowed. Credited Service will cease
when a Member's service as an Employee terminates.
k. "Disability" means a physical or mental condition which:
(1) in the judgment of the City's tong-Term Disability Insurance
Company, qualifies the Member's condition as totally disabled and entitles
the Member to receive Disability Benefits;
(2) in the judgment of the Federal Social Security
Administration, qualifies the Member's condition as totally disabled within
the meaning of the Social Security Act and entitles the Member to receive
Disability Benefits; or
(3) in the judgment of the City's designated worker's
compensation physician, administrative law judge or, if appealed, the court
issuing the final judgment, qualifies the Member's condition as a
permanent total disability and entitles the Member to receive Disability
Benefits.
1. "Disability Benefits" means monetary payment for disability received
from any one or more of the following sources:
(1) the City's long term disability plan;
(2) the Federal Social Security Administration;
(3) the City's workers' compensation plan.
m. "Effective Date of this Plan" means January 1, 1971. The first
restatement was effective January 1, 1985. This amended and restated Plan is
effective as of January 1, 1992.
II-3
FOODOUNIP1:9
n. "Employee" means:
(1) any person who is hired to fill a classified position as defined
by the City Personnel Rules and Regulations;
(2) all nonfirefighter personnel who perform clerical and
technical duties for Poudre Fire Authority;
(3) any employee of the City who qualifies under the following
criteria:
(a) the employee became a Member in the Plan-while in
a classified position;
(b) either (i) the Employee's classified position was
thereafter converted to an unclassified position, or (ii) the
Employee thereafter transferred from a classified position into an
unclassified position;
(c) at the time of the conversion or transfer into an
unclassified position, the Employee elected to remain a Member
and continue to accrue Credited Service; and
(d) the Member does not (i) elect to withdraw from the
Plan (in the event of such withdrawal the Member shall be ineligible
to return or accrue additional Credited Service unless he becomes
employed in a classified position), or (ii) incur any Break in Service
as defined herein, except, however, that a Member shall be deemed
to have returned to service whether the return is to a classified or
unclassified position; and
(4) leased employees within the meaning of Code
Section 414(n)(2), if such leased employees constitute twenty percent or
more of the Employer's nonhighly compensated workforce within the
meaning of Code Section 414(n)(5)(C)(ii).
o. "Final Average Monthly Compensation" means 1/60th of a
Member's total Compensation during the 60 consecutive full calendar months of
Credited Service out of his last 120 calendar months of Credited Service, which
will produce the highest average monthly compensation. If a Member has less
than 60 consecutive full calendar months of Credited Service, his Final Average
H-4
F06PDO54.WP1:10
Monthly Compensation shall be 1/60th of his total Compensation during 60
successive full calendar months during the last 120 calendar months of Credited
Service that would yield the highest average, or the average of his total
Compensation during all full calendar months of Credited Service, if less than 60
months.
P. "Funding Aeent" means any insurance company or trustee appointed
by the Retirement Committee as provided in Article XII, or the Retirement
Committee, if no designation has been made.
q. "Funding Agreement" means the insurance contract with the
insurance company or the trest agreement with the trustee as approved by the
Retirement Committee for the purpose of the investment and management of
Retirement Fund assets.
r. "Insurance Company" means any insurance company or companies
appointed by the City Council as provided in Article XII.
S. 'Member' means any person included in the membership of this
Plan as provided in Article III hereof, including an Employee who qualifies for
Disability as defined in Section 21. of Article II.
t. "Plan" means the City of Fort Collins' General Employees
Retirement Plan (As Restated Effective January 1, 1992) as it may be amended.
U. "Plan Year" means the calendar year.
V. "Retired Member" means a former member whose employment
terminated by reason of retirement or Disability and who is receiving or is
entitled to receive, or whose Beneficiary or estate is entitled to receive, benefits
under this Plan.
W. "Retirement Benefit" or "Pension" means any retirement benefit
provided for in Article VI hereof.
X. "Retirement Fund" or "Fund" means the "City of Fort Collins'
General Employees Retirement Fund," maintained by the Retirement Committee
or in accordance with the terms of any Funding Agreement, as amended from
time to time, which constitutes a part of this Plan.
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P06PDO54.WP1:11
y. "Service" shall mean service rendered as a Covered Employee of the
City.
Z. 'Trustee" shall mean any qualified and acting Trustee appointed by
the City Council as a Named Fiduciary for the investment and management of
Plan assets.
aa. "Vested Member" means a former Member whose Credited Service
has terminated by reason other than retirement or Disability and who is entitled
to receive, or whose Beneficiary or estate is ertitled to receive, benefits under this
Plan. A Vested Member shall become a Retired Member upon actual retirement.
Section 3. Construction. The masculine gender, where appearing in the Plan,
shall be deemed to include the feminine gender and words used in the singular shall
include the plural unless the context clearly indicates the contrary. Words such as
"hereof," "herein," and "hereunder," shall refer to the entire Plan, not to any particular
provision or Section. The Plan and Funding Agreement shall each form a part of the
other by reference and terms used therein shall be interchangeable.
H-6
P06PD054.WP1:12
ARTICLE III
Membership
Section 1. Employees on January 1. 1971. Every person who was an Employee
of the City of Fort Collins on January 1, 1971 became a Member in the Plan on such
date.
Section 2. Employees Hired After December 31. 1970. Each Employee of the
City hired after December 31, 1970, shall become a Member in the Plan on his date of
employment. Effective January 1, 1990, an Employee must also be in Covered
Employment to become a Member.
Section 3. Termination. Membership of any Member shall terminate (except
as a Vested Member) if and when he shall cease to be in Covered Employment for any
reason, except as provided in Article IV, Section 2.
Section 4. Withdrawal. Unless otherwise provided herein, once an Employee
has become a Member of the Plan, he may not withdraw from membership in the Plan
unless he ceases to be an Employee.
III-1
F06PDOUMP1:13
ARTICLE IV
Credited Service
Section 1. Credited Service. A Member's Credited Service shall be used to
determine his Accrued Benefit and eligibility for benefits under the Plan. A Member's
Credited Service is the elapsed time period from his date of employment with the City,
as an Employee, to his date of termination of such employment, except as limited within
this Section. A Member shall accrue Credited Service under the Plan for any period of
time during which the Member:
a. is qualified for either:
(1) a total Disability as defined in subsections 1, 2 or 3 of
Article II, Section 2.k.; or
(2) a temporary total disability in the judgment of the City's
designated worker's compensation physician;
b. is receiving Disability Benefits; and
C. is not receiving any payment from this Plan.
A Member may also accrue Credited Service under the Plan for any period of
time up to a maximum accrual of two (2) years during which the Member:
a. is qualified for a permanent partial disability in the judgment of the
City's designated worker's compensation physician, administrative law judge or, if
appealed, the court issuing the final judgment;
b. is not working as an Employee in Covered Employment;
C. is receiving Disability Benefits; and
d. is not receiving any payment from this Plan.
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In the event a Member receives a lump sum disability benefit payment in lieu of
ongoing payments, the period of accrual of Credited Service shall be the period of
entitlement which provided the basis for calculation of the lump sum amount.
Section 2. Breaks in Service. A Member shall incur a Break in Service if his
service as an Employee terminates and he does not return to service as an Employee
within five (5) years of the date such service terminated. The Retirement Committee
shall have the power to determine when a Break in Service shall have occurred, and such
determination shall be made in a nondiscriminatory manner. However, the following
shall not be considered as a Break in Service:
a. A temporary lay-off because of an illness or for purposes of
economy, suspension, or dismissal, followed by reinstatement, reemployment or
reappointment within one year.
b. A formal leave of absence followed by reinstatement, reemployment
or reappointment within 30 days after termination of the leave of absence.
C. A leave of absence on account of entering into the military service
of the United States, followed by a return to employment as an Employee of the
City within 90 days after the time when a discharge from such military service was
first available to such Member.
Credited Service shall not include the time during which a Member is not in
active service of the City for any of the reasons stated in this Section 2.
Upon incurring a five (5) year Break in Service, a Member shall lose all his prior
Credited Service. If a Member returns to service as an Employee in Covered
Employment prior to incurring a five (5) year Break in Service and repays the Fund,
within six (6) months of rehire, any amounts received because of his prior termination,
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with interest (at the rate used to determine an Actuarial Equivalent) from the date
received to the date of repayment, the prior Credited Service for which such amounts
were received shall be restored.
Any Member of the Plan as of the effective date of this amendment and
restatement who would be affected by this provision shall have until six (6) months after
final adoption of this amendment and restatement to make the repayment, if any, and
have his prior Credited Service restored.
Section 3. Effect of Other Plans. Credited Service shall not include any period
on the basis of which a retirement benefit is payable under any other defined benefit
retirement or pension plan to which the City made contributions, other than benefits
payable under the Federal Social Security Act.
Section 4. Miscellaneous. No period of Credited Service shall be deemed to
be increased or extended by overtime. In determining all Credited Service, service for
fractional years shall be allowed on the basis of 1/12th year for each full month of
employment as an Employee.
All phrases such as "employment with the City" (or "employment with the City of
Fort Collins") and "Employees of the City" (or "Employees of the City of Fort Collins")
are hereby deemed to include "employment with Poudre Fire Authority" and
"nonfirefighter, clerical and technical Employees of Poudre Fire Authority."
IV-3
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ARTICLE V
Retirement Dates
Section 1. Normal Retirement. The Normal Retirement Date of a Member
shall be his 65th birthday upon which date he shall become fully vested in his Accrued
Benefit. For purposes of the commencement of payment of a Retirement Benefit,
Normal Retirement Date shall mean the first of the month coincident with or following a
Member's 65th birthday.
Section 2. Early Retirement. A Member or Vested Member who has attained
the age of 55 years and has completed at least six years of Credited Service may elect to
retire as of the first day of any calendar month, which shall not be less than 30 nor more
than 90 days after the filing of written notification with the Retirement Committee.
Section 3. Delayed Retirement. A Member may continue in the employment
of the City after his Normal Retirement Date. If the retirement of a Member is delayed
under this Article V, Section 3, his "Delayed Retirement Date" shall be the first day of
the month, coincident with or next following the date of his actual retirement. As a
condition precedent to continuance in employment beyond the Normal Retirement Date,
the Member shall file with the Retirement Committee a written designation of a
Beneficiary, whether or not the Member elects one of the optional forms of benefits in
accordance with Article VII.
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Section 4. Disabilityy Retirement. If a Member's employment by the City
terminates by reason of his Disability, he shall be eligible for a Disability Benefit
commencing on the first day of the month, coincident with or next following his 65th
birthday, or upon termination of his long-term disability insurance benefits, if later.
Disability shall be considered to have ended if, prior to his 65th birthday, the
Member loses his qualification for Disability and is no longer entitled to any additional
Credited Service under Section 1 of Article IV for his Disability. If Disability ceases
prior to the Member's 65th birthday, no Disability Benefits shall be paid to or for him.
If the Member's Disability ceases prior to his 65th birthday (and if he is not reemployed
by the City as an Employee) and if he has met the requirements for an Early or
Deferred Vested Benefit pursuant to Articles V or IX on the date of his recovery from
Disability, he shall be entitled to receive a benefit equal in amount to the Early or
Deferred Vested Benefit to which he would have been entitled as of the date of his
recovery, considering his Final Average Monthly Compensation at the date Disability
commenced and his Credited Service on the date of his recovery from Disability.
A Member's Early Retirement or deferred Retirement Benefit shall be based on
his Annual Rate of Compensation at the date of disablement if:
a. the Member's employment by the City ends as a result of his
Disability;
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b. the Member does not return to work for the City as an Employee;
and
C. the Member has accrued sufficient Credited Service for Early
Retirement under Article V, Section 2 or for a deferred Retirement Benefit under
Article IX, Section 2.
Section 5. Retirement Date. A Member's "Retirement Date" shall be on his
Normal Retirement Date, his Early Retirement Date, his Delayed Retirement Date, or
his Disability Retirement Date, whichever is applicable.
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ARTICLE VI
Retirement Benefits
Section 1. Normal or Delved Retirement. Upon retirement at or after his
Normal Retirement Date, each Retired Member shall receive a monthly Retirement
Benefit equal to 11/2% of the Member's Final Average Monthly Compensation multiplied
by the total number of years of the Member's Credited Service.
Section 2. Early Retirement. A Member or Vested Member, eligible for early
retirement and retiring prior to his Normal Retirement Date, shall be entitled to a
reduced Retirement Benefit which shall be his Vested Accrued Benefit on his Early
Retirement Date, reduced by 1/180 for each of the first 60 months and 1/360 for each
additional month by which the payments commence prior to the first of the month
following his Normal Retirement Date.
Section 3. Disability Retirement. The Disability Retirement benefit of a
Member eligible therefor shall be his Accrued Benefit on the date his Benefit
commences, based on his Annual Rate of Compensation at his date of disablement, and
the Credited Service as defined in Article IV, Section 1.
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Section 4. Payment of Benefits. The basic monthly Retirement Benefit,
computed as set forth above, shall be paid in equal monthly payments commencing on
the last day of the month on or after the Retirement Date, and continuing at monthly
intervals for the Retired Member's lifetime thereafter. If a Retired Member or
Beneficiary should die during a monthly interval, a partial monthly payment shall be
paid.
Retirement Benefits shall not be paid to any Retired Member during any period
of employment subsequent to his actual retirement date during which he is receiving
Compensation and is considered an Employee of the City. Monthly payments shall
commence on the last day of the month, following the month of such Retired Member's
subsequent termination of service with the City as an Employee and shall be determined
pursuant to Section 2 of Article XVI.
Section 5. Minimum Periodic Payment. If the amount of the monthly
Retirement Benefit payable to a retired Member is less than $100, the Retirement
Committee shall make Actuarially Equivalent Retirement Benefit payments in a
single sum.
Section 6. Accrued Credits and Vested Benefits Under the Previous Plan
Preserved The restatement of the previous Plan by this Plan shall not operate to
exclude, diminish, limit or restrict the payment or continuation of the payment of
benefits accrued prior to the Effective Date of this Plan. The amount and payment of
any such previous Plan benefits, shall be continued by the Funding Agent under the
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Funding Agreement forming a part of this Plan, in the same manner, undiminished,
preserved, and fully vested under this Plan, except as provided in Section 7 of this
Article VI.
The eligibility for, and amount of, any benefit of any kind, payable under this Plan
to or for any person who was a Member of the previous Plan and who became a
Member of this restated Plan as of January 1, 1992, shall be determined under the
provisions of this Plan.
Section 7. Increased Benefits for Retired Members and Beneficiaries as of July
1. 1990. Effective July 1, 1990, the monthly benefit of Retired Members and
Beneficiaries whose payments commenced prior to July 1, 1989, were increased. Such
increase was as follows:
Commencement Date Percentage Amount
Payment of First Benefit of Increase in
to Retired Members or Beneficiaries Monthly Benefits
June 30, 1989 - July 1, 1990 0%
June 30, 1988 - July 1, 1989 3%
June 30, 1987 - July 1, 1988 6%
June 30, 1986 - July 1, 1987 9%
June 30, 1985 - July 1, 1986 12%
June 30, 1984 - July 1, 1985 15%
November 1, 1983 - July 1, 1984 18%
Prior to November 1, 1983 20%
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ARTICLE VII
Optional Forms of Benefits
Section 1. General. Subject to such uniform rules and regulations as the
Retirement Committee may prescribe and the spousal consent as required in Section 5
of this Article, a Member or Vested Member may, in lieu of the basic Retirement
Benefits provided in Article VI, elect one of the following forms of Retirement Benefits
which shall be the Actuarial Equivalent of the benefit to which he would otherwise be
entitled. The Member or Vested Member must make any election of an optional form
of benefit in writing, and such election must be filed with the Retirement Committee at
least 30 days prior to the due date of the first payment of his Retirement Benefits under
this Plan. The election of an optional form of benefit may be changed at any time prior
to 30 days preceding the due date of the first payment of Retirement Benefits under the
Plan. However, an optional form of benefit may not be elected unless the value of the
payments expected to be paid to the Member exceeds 50% of the value of the total
benefits to be paid under such optional form of benefit.
Section 2. 100% Joint and Survivor Benefit. The Member may elect a 100%
Joint and Survivor Benefit which provides reduced monthly Retirement Benefit payments
during the Retired Member's life, and, upon his death after retirement, continues
payments in the same reduced amount to a designated Beneficiary during the life of such
Beneficiary.
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Section 3. 50% Joint and Survivor Benefit. The Member may elect a 50%
Joint and Survivor Benefit which provides reduced monthly Retirement Benefit payments
during the Retired Member's life, and, upon his death after retirement, continues
payments in an amount equal to one-half of the amount of such reduced payment to a
designated Beneficiary during the life of such Beneficiary.
Section 4. 120 Months Certain and Life Benefit. The Member may elect a 120
Months Certain and Life Benefit which provides reduced monthly Retirement Benefit
payments during the Retired Member's life, and in the event he dies prior to receiving
120 monthly payments, the same reduced amount shall be continued to his Beneficiary
until a total of 120 monthly payments have been made.
Section 5. Beneficiary. Each active, Vested or Retired Member may designate
a Beneficiary to receive any benefit that may become payable under this Plan by reason
of his death. However, if a married Member wishes to designate someone other than his
spouse to be his Beneficiary, such designation will not become effective unless his spouse
(if his spouse can be located) consents in writing to such designation, acknowledges the
effect of such designation and has such consent and acknowledgement witnessed by a
Plan representative or a notary public. Such designation shall not become effective until
filed with the Retirement Committee.
If any Member shall fail to designate a Beneficiary, or if the one designated by
him predeceases him, then the Retirement Committee is hereby empowered to designate
a Beneficiary (or Beneficiaries) on his behalf, but only from among the following with
priority in the order named below, which shall include persons legally adopted:
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a. his spouse, or if none;
b. his children and children of deceased children, by right of
representation, or if none;
C. his parents, or if none;
d. his brothers and sisters and nephews and nieces who are children of
deceased brothers and sisters, by right of representation, or if none;
e. his estate.
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ARTICLE VIII
Death Benefits
Section 1. Death of an Active Member. a Disabled Member or a Vested
Member Prior to Normal Retirement Date. In the event that a Member, who has
attained age 55 and has completed at least six years of Credited Service, and who is
actively employed by the City or whose employment terminated after having completed
such age and service requirements, dies prior to his Normal Retirement Date and prior
to the commencement of his Retirement Benefit, a death benefit will be paid. If the
Member was married on his date of death, a life benefit shall be paid to his surviving
spouse in an amount equal to 50% of the Member's Accrued Benefit on his date of
death. In the event such spouse dies prior to receiving 60 monthly payments, the same
amount shall be continued to the spouse's Beneficiary until a total of 60 monthly
payments have been made. If the Beneficiary dies before the 60 monthly payments have
been made, the remaining payments or the Actuarial Equivalent of the remaining
payments, shall be paid in a single sum to the estate of such Beneficiary. If the Member
was not married on his date of death, a benefit shall be paid to the Member's designated
Beneficiary (or if none, his estate), in an amount equal to 50% of the Member's Accrued
Benefit on his date of death. Such benefit may be paid over a 60-month period or in an
Actuarially Equivalent single sum payment.
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Section 2. Death of an Active Member Between Normal and Delayed
Retirement Dates. In the event a Member continues in City employment after his
Normal Retirement Date, and dies before actually retiring, then he shall be deemed to
have retired on the first day of the calendar month in which he dies. If no other form of
payment has been elected, the Member shall be deemed to have elected the 100% Joint
and Survivor Optional Form of Benefit provided for in Article VII, Section 2, and
payments shall be made in accordance with this option to the Beneficiary designated by
the Member.
Section 3. Death of a Retired Member. In the event a Retired Member dies
while receiving Retirement Benefit payments, his death benefit, if any, will be
determined by the form of Retirement Benefit being paid. If a Retired Member or
Beneficiary should die during a monthly interval, a partial monthly payment shall be
paid.
Section 4. Uniform Simultaneous Death Act. The provisions of any State law
providing for the distribution of estates under the Uniform Simultaneous Death Act shall
govern the distribution of money payable under this Plan when applicable.
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ARTICLE IX
Severance Benefits
Section 1. Coverage. Benefits shall be paid to a Member under this Article if
his employment terminates for reasons other than retirement, disability or death.
Section 2. Six or More Years of Service. In the event a Member's employment
terminates prior to his Normal Retirement Date, and he has six or more years of
Credited Service, he shall become a Vested Member. A Vested Member shall be
entitled to a deferred Retirement Benefit which shall be the vested portion (as shown in
the table below) of his Accrued Benefit on the date of the termination of his Credited
Service.
Completed Years Percent of Vested
Of Credited Service Accrued Benefit
Less than 6 0%
6 20%
7 40%
8 60%
9 80%
10 or more 100%
Such deferred Retirement Benefit shall be payable at the Vested Member's Normal
Retirement Date.
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If the deferred Retirement Benefit to which a Vested Member will be entitled at
his Normal Retirement Date is less than $100.00 per month, the Vested Member shall
be paid, one year after his employment terminates, a single sum equal to the Actuarial
Equivalent of such deferred Retirement benefit, in lieu of all other benefits due to such
Vested Member under this Plan.
In lieu of receiving a deferred Retirement Benefit upon his Normal Retirement
Date, the Vested Member may elect to receive a reduced Retirement Benefit beginning
upon the last day of any month subsequent to his attainment of age 55. The reduction
shall be 1/180 for each of the first 60 months and 1/360 for each additional month
beyond the first 60 months by which payments commence prior to the first of the month
following his Normal Retirement Date.
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ARTICLE X
Contributions
Section 1. Member Contributions. Members are not required or permitted to
make contributions under this Plan.
Section 2. City Contributions, The City shall make contributions to the Fund
adequate to finance the benefits which the Plan provides on a sound actuarial basis. The
required contributions to the Plan shall be determined by a competent actuary. The City
expects to continue such contributions to the Plan, but assumes no responsibility to do so
and reserves the right to suspend or to reduce contributions at any time upon
appropriate action by an amendment to the Plan by the City Council.
Notwithstanding any other provisions hereof or any amendment hereto to the
contrary, at no time shall any assets of the Fund revert to, or be recoverable by, the City
or be used for, or diverted to, purposes other than for the exclusive benefit of Members,
Retired Members, Vested Members, or their Beneficiaries under the Plan except such
funds which upon termination of the Plan are in excess of the amount required to fully
fund the Plan and which are due to erroneous actuarial assumptions.
Section 3. Application of Forfeitures. Any amount forfeited because of
termination of employment of a Member prior to his having become 100% vested in his
Retirement Benefits (because of his death or for any other reason), shall not be applied
to increase the benefits provided by the Plan unless such benefits are increased by
appropriate amendment, as provided in Article XIV.
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ARTICLE XI
Administration of the Plan
Section 1. Retirement Committee. A Retirement Committee composed of five
members shall administer the Plan. One of said members shall be the Director of
Finance, who shall keep all records and minutes of meetings. Three of said members,
other than the Director of Finance, shall be Employees who are covered by the Plan.
All members of the Committee, other than the Director of Finance, shall be appointed
by the City Council to serve at its pleasure and for overlapping terms designated by the
City Council. All members of the Committee who are not Employees of the City shall
be tax-paying electors of the City.
A majority of the five 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 service on the
Committee but a member may be reimbursed for reasonable expenses incurred in
connection with his duties as a member of the Committee.
Section 2. Manafement of the Plan. The Retirement Committee shall have all
powers necessary to effect the management and administration of the Plan in accordance
with its terms, including, but not limited to, the following:
a. To designate a Funding Agent, which may be the Retirement
Committee, to manage the Retirement Fund.
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b. To establish rules and regulations for the administration of the Plan,
for managing and discharging the duties of the Committee, for the Committee's
own government and procedure in so doing, and for the preservation and the
protection of the Funds.
C. To interpret the provisions of the Plan and to determine any and all
questions arising under the Plan or in connection with the administration thereof.
A record of such actions and all other matters properly coming before the
Committee shall be kept and preserved.
d. To determine all considerations affecting the eligibility of any
Employee to be or become a Member of the Plan.
e. To determine the Credited Service of any Member and to compute
the amount of Retirement Benefit, or other sum, payable under the Plan to any
person.
f. To authorize and direct all disbursements of Retirement Benefits
and other sums under the Plan.
g. With the advice of its actuary, to adopt, such mortality and other
tables as it may deem necessary or appropriate for the operation of the Plan from
time to time.
h. To make or arrange for valuations and appraisals of Fund assets
held under the Plan, and, with the advice of the actuary, to determine the
liabilities of the Plan.
i. To hold assets of the Plan in a special account entitled "Retirement
Plan Fund," and invest and reinvest the same and to make such withdrawals
therefrom as are authorized by the Plan for the payment of Retirement Benefits
and the expenses of the Committee and the members thereof.
j. To maintain such records and accounts and to render such financial
statements and reports as may be required by the City Council.
k. To authorize one or more members of the Retirement Committee
to sign all legal documents and reports on behalf of the Retirement Committee.
Section 3. Miscellaneous. All proper expenses incurred by the Retirement
Committee in the administration of the Plan, if not paid by the City, shall be paid from
the Fund when authorized by the Retirement Committee.
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The Retirement Committee shall have no power to add to, subtract from or
modify any of the terms of the Plan, nor to change or add to any benefits provided by
the Plan, nor to waive or fail to apply any requirements of eligibility for Retirement
Benefits under the Plan. A member of the Retirement Committee shall not vote on
any matter relating solely to himself or to his rights or benefits under the Plan. If a
Committee member is so disqualified to act and the remaining members cannot agree,
the City Council shall appoint a temporary substitute member to exercise all of the
powers of the disqualified member concerning the matter in which he is disqualified.
The decision of the Retirement Committee and any action taken by it in respect
to the management of the Plan shall be conclusive and binding upon any and all
Employees, officers, former Employees and officers, Members, Retired Members, Vested
Members, their Beneficiaries, heirs, distributees, executors, and administrators and upon
all other persons whomsoever, but the Committee at all times shall act in a uniform and
nondiscriminatory manner. Neither the establishment of this Plan nor any modifications
thereof or any action taken thereunder or any omission to act, by the Retirement
Committee, the City Council or any of their members shall be construed as giving to any
Member or other person any legal or equitable right against the City or any officer or
employee thereof or against the Retirement Committee, the City Council, or any of their
members.
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ARTICLE XII
Method of Funding
Section 1. F n in . The Retirement Committee shall decide whether it shall
handle the Fund or shall appoint an insurance company, a trustee, or another funding
vehicle, to hold and invest the Retirement Fund. The Retirement Committee shall have
the power to change such funding at any time upon notice required by the terms of the
Funding Agreement.
Section 2. Assets. All of the assets of the Plan shall be held by the Funding
Agent acting under a Funding Agreement for use in providing the benefits under the
Plan. No part of the said corpus or income shall be used for or diverted to purposes
other than for the exclusive benefit of the Members, Retired Members, Vested
Members, their Beneficiaries or estates under the Plan, prior to the satisfaction of all
liabilities hereunder with respect to them, except such funds which, upon termination of
the Plan, are in excess of the amount required to fully fund the Plan and are due solely
to erroneous actuarial assumptions. No person shall have any interest in or right to any
part of the assets of the fund except as and to the extent expressly provided in the Plan.
Section 3. Duties of the Funding Agent. The duties of the Funding Agent
shall include but shall not be limited to the following:
a. It shall receive from the City, all contributions to the Fund herein
established.
b. It shall receive all of the income from the Fund.
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C. It shall pay out of the Fund, upon written instructions from the
Retirement Committee, the funds required for payments under the Plan.
d. It shall invest and reinvest the corpus and income of the Fund,
subject to the requirements of the Plan, as directed by the Retirement Committee
and as set forth in the funding agreement.
e. It shall maintain such records and accounts of the Fund, and shall
render such financial statements and reports thereof, as may be required from
time to time by the City Council or the Retirement Committee.
Section 4. Investment Powers. The investment of the corpus of the Fund shall
be made according to the powers and limitations set forth in the Funding Agreement.
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ARTICLE XIII
Retirement Benefits and Rights Inalienable
Section 1. Inalienability. Members, Retired Members, Vested Members and
their Beneficiaries under the Plan are hereby restrained from selling, transferring,
anticipating, assigning, hypothecating, or otherwise disposing of their Retirement Benefit,
prospective Retirement Benefit, or any other rights or interest under the Plan, and any
attempt to anticipate, assign, pledge, or otherwise dispose of the same shall be void.
Said Retirement Benefit, prospective Retirement Benefit and rights and interests of said
Members, Retired Members, Vested Members or Beneficiaries shall not at any time be
subject to the claims of creditors or liabilities or torts of said Members, Retired
Members, Vested Members or Beneficiaries, nor be liable to attachment, execution, or
other legal process. Notwithstanding the foregoing, the Retirement Committee may
approve payment to an alternate payee based upon any assignment for child support
purposes as provided for in sections 14-10-118(1) and 14-14-107, C.R.S., or any writ of
garnishment which is the result of a judgment taken for arrearages for child support or
for child support debt and such payment shall not be deemed to be a prohibited
alienation of benefits.
Section 2. Bankruptcy. If any Member, Retired Member, Vested Member or
Beneficiary shall become bankrupt or attempt to anticipate, assign or pledge any benefits
under this Plan, then such benefits shall cease, and in that event the Retirement
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Committee shall have the authority to cause the same, or any part thereof, to be held or
applied to or for the benefit of such Member, his spouse, his children, or other
dependents, or any of them, in such manner and in such proportions as the Retirement
Committee shall decide.
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ARTICLE XIV
Modification or Termination of Plan
Section 1. Expectation. It is the expectation of the City Council that it will
continue this Plan and the payment of its contributions hereunder indefinitely, but
continuance of the Plan is not assumed as a contractual obligation of the City.
Section 2. Amendment. The City Council reserves the right to alter, amend,
or terminate the Plan or any part thereof in such manner as it may determine, and such
alterations, amendment or termination shall take effect upon notice thereof from the
City Council to the Retirement Committee; provided that no such alteration or
amendment shall permit any part of the Fund to revert to or be recoverable by the City
or to be used for or diverted to purposes other than for the exclusive benefit of
Members, Retired Members, Vested Members or Beneficiaries under the Plan, except
such monies, if any, that may remain after termination of the Plan and the funding
agreement (and after satisfaction of all liabilities with respect to Members, Retired
Members, Vested Members and Beneficiaries under the Plan) and which are due solely
to erroneous actuarial assumptions.
Section 3. Approval Under the Internal Revenue Code. The Plan is intended
to comply with the requirements of the applicable provisions of Code Section 401(a) as
now in effect or as hereafter amended, and any modification or amendment of the Plan
may be made retroactive, as necessary or appropriate, to establish and maintain such
compliance.
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Section 4. Discontinuance. The City Council reserves the right at any time and
for any reason satisfactory to it to discontinue permanently all contributions under this
Plan. Such discontinuance shall be deemed to be a complete termination of the Plan.
Section 5. Termination. In the event of a partial or complete termination of
the Plan, all affected monies covered by the Plan and the funding agreement shall be
allocated to Members, Retired Members, Vested Members and Beneficiaries in
proportion to the actuarial reserves for each Member's (or Beneficiary's) Accrued
Benefit at the date of termination of the Plan.
Section 6. Distribution. When the monies covered by the Plan and the funding
agreement have been allocated as indicated above, the distribution may be made in the
form of cash or nontransferable annuity contracts as determined by the Retirement
Committee, provided that any monies remaining after the satisfaction of all liabilities to
Members, Retired Members, Vested Members and Beneficiaries under the Plan may be
withdrawn by the Retirement Committee from the Fund and refunded to the City.
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ARTICLE XV
Benefit Restrictions on Early Termination
Section 1. Restrictions. Notwithstanding any other provision hereof, the
benefits provided by City contributions for Members described in Section 2 herein shall
be subject to the following conditions:
a. Payment in full shall be made of such benefits which have been
provided by City contributions not exceeding the larger of the following amounts:
(i) $20,000; or (ii) an amount equal to 20% of the first $50,000 of the Membees
average regular annual Compensation multiplied by the number of years between
the date of the establishment of this Plan and (1) the date that the Plan
terminates or (2) if benefits become payable to a Member described in Section 2
herein within ten years after the date of the establishment of this Plan, the date
the benefits of such Member first become payable (if before the date of
termination of this Plan) or (3) if benefits become payable to a Member described
in Section 2 herein after the Plan has been in effect for ten years and if the full
current costs of the Plan for the first ten years have not been met or if the full
current costs have not been met on the dates referred to in (1) or (2) above, the
date of the failure to meet the full current costs;
b. If (1) this Plan is terminated within ten years after its establishment
or (2) the benefits of any of the Members described in Section 2 herein become
payable within ten years after the establishment of this Plan or (3) the benefits of
any of such Members become payable after this Plan has been in effect for ten
years and at the time such benefits become payable the full current costs for the
first ten years have not been met, the benefits which any of such Members may
receive from City contributions shall not exceed the benefits set forth in
paragraph a. of this Section. This limitation shall cease to be effective at such
time, at or after the expiration of ten years from the date of the establishment of
this Plan, if the full current costs of the Plan have first been met;
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C. If a Member described in Section 2 herein leaves the employ of the
City, the benefits which he may receive from City contributions shall not at any
time, within the first ten years after the establishment of this Plan; exceed the
benefits set forth in a. herein, if, at the end of ten years after the date of the
establishment of this Plan the full current costs of the first ten years have not
been met, the benefits such Member may receive from City contributions shall not
exceed the benefits set forth in a. herein until the first time that the full current
costs of this Plan have been met;
d. These conditions shall not restrict the full payment of any benefits
on behalf of a Member who dies while this Plan is in full effect and its full
current costs have been met;
e. These conditions shall not restrict the current payment of full
Retirement Benefits called for by this Plan for any Retired Member while this
Plan is in full effect and its full current costs have been met;
f. This Section is intended to conform to the requirements of Treasury
Regulation, Section 1.401-4(c) and shall cease to be effective at such time as the
provisions of Treasury Regulation 1.401-4(c) or any substitute therefor are no
longer effective or applicable.
Section 2. Members Affected by Section 1. The Members referred to in
Section 1 herein shall be limited to those whose anticipated annual benefit hereunder
shall exceed $1,500 and who at the Effective Date hereof are among the twenty-five
highest paid employees of the City, whether or not initially eligible for membership.
Section 3. Amendment of the Plan. If the Plan is amended to increase
benefits which would substantially increase the extent of possible discrimination as to
contributions or as to benefits upon termination of the Plan, the restrictions set forth in
Section 1 of this Article XV shall be applied to the Plan as if it were a new plan
established on the date of such change.
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ARTICLE XVI
Limitations
Section 1. Reemployment of Former Members. If a Member's employment
terminates prior to becoming eligible for a Retirement Benefit and the Member is
subsequently reemployed as an Employee, such Member shall not be entitled to receive
credit for his previous Credited Service under the Plan, except as provided in Article IV.
Section 2. Reemployment of Retired Members. If a Retired Member is
reemployed as an Employee of the City, no Retirement Benefit payments shall be made
during the period of such reemployment. Upon the subsequent termination of
employment by such a Member, the Member shall be entitled to receive a Retirement
Benefit based on his total Credited Service prior to the date of his previous Retirement,
during the period of his reemployment and in the case of a disabled Member, his
Credited Service while disabled. In the case of reemployment of a Retired Member who
received any Pension payments prior to his reemployment, the Retirement Benefit
payable upon his subsequent retirement shall be reduced by the Actuarial Equivalent of
the Pension payments, other than Disability Pension payments, he received prior to his
Normal Retirement Date.
Section 3. Limitation of Benefits. Notwithstanding any other provision
contained herein to the contrary, the benefits payable to an Employee from this Plan
provided by City contributions shall be subject to the limitations of Code Section 415 in
accordance with (1) and (2) below:
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a. Defined Benefit Plan Only: Any annual Pension payable to an
Employee hereunder shall not exceed the lesser of:
(1) $90,000, 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, or, if greater, the amount of straight life
or qualified joint and survivor annuity accrued by the Member as of
December 31, 1982.
(2) 100% of the Employee's average earnings for the three
consecutive calendar years, while a Member in the Plan, in which his
earnings were the highest. For purposes of this subsection, earnings for She
calendar year shall be the Employee's earned income, wages, salaries, and
fees for professional services, and other amounts received for personal
services actually rendered in the course of employment with the City
(including, but not limited to, commission paid salesmen, compensation for
services on the basis of a percentage of profits, commissions on insurance
premiums, tips and bonuses), provided such amounts are actually paid or
includible in gross income during such year. Earnings shall exclude the
following:
(a) City contributions to a plan of deferred compensation
which are not included in the Employee's gross income for the
taxable year in which contributed or City contributions under a
simplified employee pension plan to the extent such contributions
are deductible by the Employee, or any distributions from a plan of
deferred compensation; and
(b) Other amounts which received special tax benefits, or
contributions made by the city (whether or not under a salary
reduction agreement) towards the purchase of an annuity described
in Section 403(b) of the Code (whether or not the amounts are
actually excludable from the gross income of the Employee).
Except as provided below, the foregoing limitations shall not be applicable
with respect to any Member whose annual Pension under this Plan is less than
$10,000 if such Member has not at any time participated in any defined
contribution plan maintained by the City. In the event that a Member has been
credited with less than ten years of participation service, the maximum annual
Pension allowable under this Section shall be reduced by multiplying such
maximum annual Pension by a fraction, the numerator of which is the number of
such Member's years of participation service and the denominator of which is ten.
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The preceding sentence shall, to the extent required by the Secretary of the
Treasury, be applied separately to each change in benefit accrual rate hereunder.
In the event that a Member has been credited with less than ten (10) years of
participation service, the percentage-of-average-earnings limitation otherwise
applicable under (b) above and the dollar amount otherwise applicable under the
first sentence of this paragraph shall be reduced by multiplying each by a fraction,
the numerator of which is the number of such Member's years of participation
service (or part thereof), but never less than one (1), and the denominator of
which is ten (10).
The limitations of this Section apply to a straight life annuity with no
ancillary benefits and to an annuity that constitutes a qualified joint and survivor
annuity, provided payment begins between ages 62 and 65. If payment
commences before age 62, the foregoing limitations shall be reduced so that they
are Actuarially Equivalent to such a benefit commencing at age 62. However, the
reduction of this paragraph shall not reduce the limitation below $75,000, if
payment commences after age 55, or below the Actuarial Equivalent of $75,000
commencing at age 55, if payment commences before age 55. If payment
commences after age 65, the limitation shall be the Actuarial Equivalent of a
$90,000 annual benefit commencing at age 65. The interest assumption for
purposes of determining Actuarial Equivalency under this paragraph shall be the
interest rate otherwise used for purposes of computing optional forms of income
payable under the Plan, but the rate shall not be less than 5% annually if benefits
commence before age 62 and shall not exceed 5% annually if benefits commence
after age 65.
In no event shall a Member's maximum annual Pension allowable under
this Section be less than the annual amount of Pension (including Early
Retirement Benefits and qualified joint survivor annuity amounts) duly accrued by
such Member under Code Section 415 limitations then in effect as of December
31, 1982 (disregarding any plan changes or cost-of-living adjustments occurring
after July 1, 1982, as to the 1982 accrued amount).
b. Defined Benefit and Defined Contribution Plans: If, in any
Limitation Year, a Member also participates in one or more defined contribution
plans maintained by the City, then for such Limitation Year, the sum of the
Defined Benefit Plan Fraction and Defined Contribution Plan Fraction (as
described below) for such Limitation Year shall not exceed one. The Defined
Benefit Fraction for any Limitation Year shall mean a fraction (a) the numerator
of which is the projected annual benefit of the Member under the Plan
(determined as of the close of the Limitation Year), and (b) the denominator of
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which is the lesser of 125% of the dollar limitation under Code Section
415(b)(1)(A) or 140% of the percentage limitation under Code Section
415(b)(1)(B) for the year of determination (taking into account the effect of
Section 235(g)(4) of the Tax Equity and Fiscal Responsibility Act of 1982). The
Defined Contribution Fraction for any Limitation Year shall mean a fraction (a)
the numerator of which is the sum of the annual additions (as defined in Code
Section 415(c)(2)) to the Member's accounts under all defined contribution plans
maintained by the City as of the close of the Limitation Year (subject to
reduction to the extent permitted under the transition rule in Section 235(g)(3) of
the Tax Equity and Fiscal Responsibility Act of 1982), and (b) the denominator of
which is the sum of the lesser of 125% of the dollar limitation under Code
Section 415(c)(1)(A) or 140% of the percentage limitation under Code Section
415(c)(1)(B) for such Limitation Year and for all prior Limitation Years during
which the Employee was employed by the City (provided, however, at the election
of the Committee, the denominator shall be increased by using (for Limitation
Years ending prior to January 1, 1983), an amount equal to the denominator in
effect for the Limitation Year ending in 1982, multiplied by the transition fraction
provided in Code Section 415(e)(6)(B)).
If, in any Limitation Year, the sum of the Defined Benefit Plan Fraction
and the Defined Contribution Plan Fraction for a Member would exceed one
without adjustment of the amount of the maximum annual Pension that can be
paid to such Member under paragraph (1) of this Section, then the amount of the
maximum annual Pension that can be paid to such Member under paragraph (1)
of this Section, shall be reduced to the extent necessary to reduce the sum of the
Defined Benefit Plan Fraction for such Member to one, or the Committee may
take such other actions as will cause the sum to equal one or less.
For purposes of this Section, the Limitation Year shall be the calendar year.
Section 4. Consolidation or Merger. This Plan shall not be merged or
consolidated with, nor shall any assets or liabilities be transferred to any other Plan,
unless the benefits payable to each Member (if the Plan were terminated immediately
after such action) would be equal to or greater than the benefits to which such Member
would have been entitled if this Plan had been terminated immediately before such
action.
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RECOMMENDED AND APPROVED in Fort Collins, Colorado this -7tt'
day of APri I 1992.
CITY OF FORT COLLINS, COLORADO
BY: 1 \
Mayo
A'I'i'EST:
City Clerk
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