HomeMy WebLinkAbout061 - 06/04/1991 - APPROPRIATING PRIOR YEARS RESERVES IN THE FIREFIGHTERS PENSION FUND ORDINANCE NO. 61 , 1991
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES IN THE
FIREFIGHTER'S PENSION FUND
WHEREAS, retirement benefits for those firefighters who were hired by the
City of Fort Collins prior to April 8, 1978, have been provided through the City
of Fort Collins Firefighters' Pension Plan (as Restated January 1 , 1986) and its
predecessors, ("Old Plan") ; and
WHEREAS, the contributions made to the Old Plan by its firefighter members
and the City have been held in trust by the City for the benefit of the Old Plan
members; and
WHEREAS, on March 20, 1990, the Old Plan was amended by Resolution 90-41
to add a conversion option which allowed active members to choose between
remaining in the City's defined benefit Old Plan or transferring the benefit
accumulated to date into a defined contribution money purchase pension plan under
26 U.S.C. Section 401(a) ("New Plan") ; and
WHEREAS, all active members elected to convert their benefit into the New
Plan; and
WHEREAS, Resolution 90-41 defined the method for calculating the amount
which should be transferred out of the Old Plan and into the New Plan for each
converting member; and
WHEREAS, the benefit amount for each member was calculated; and
WHEREAS, Resolution 90-41 , (as later amended by Resolution 91-38 on March
19, 1991) provided for the transfer of each converting member's account to the
New Plan after (1) the New Plan was formally adopted by Poudre Fire Authority,
and (2) the Council made a final determination and authorized the transfer; and
WHEREAS, Poudre Fire Authority adopted the New Plan on October 23, 1990 and
the Council made its final determination and authorized the transfer by
Resolution 90-174 on December 4, 1990; and
WHEREAS, in the original 1990 Budget, Council approved an appropriation of
$6,560,902 to cover the benefit transfers and the expenses of the conversion;
and
WHEREAS, at the time the 1991 Budget was adopted, it reflected a revised
1990 Budget amount for the conversion of $4,810,400 and a 1991 Budget amount of
$2, 105,377; and
WHEREAS, because the Board of Trustees for the New Plan did not complete
the selection of an administrator for the New Plan until early 1991, no part of
the conversion was accomplished during the 1990 budget year and, as a result,
the $4,810,400 budget appropriation lapsed; and
WHEREAS, in March of 1991, City staff paid out $4,860,838.57, which amount
included the accumulated benefits for all but one of the converting members, from
the Old Plan into the New Plan; and
WHEREAS, in order to provide the estimated amounts necessary for the
benefits transferred in March, 1991, the upcoming transfer for the single
remaining member and the expenses incurred as a part of the conversion, an
appropriation of $3,000,000 is needed to supplement the $2, 105,377 already
budgeted and appropriated; and
WHEREAS, Article V, Section 8 of the Charter of the City of Fort Collins
authorizes the City Council to provide by ordinance for the payment of any
expense from reserves accumulated in prior years, notwithstanding that such
reserves were not appropriated for expenditures in the annual appropriation
ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS
that there is hereby appropriated from prior year reserves in the Firefighter's
Pension Fund the sum of THREE MILLION DOLLARS ($3,000,000) for transfer to the
New Plan, known as the Money Purchase Pension Plan and Trust Agreement of Poudre
Fire Authority (Old Hire City) , on behalf of those members of the City of Fort
Collins Firefighter's Pension Plan who have exercised the option to transfer into
the New Plan.
Introduced, considered favorably on first reading, and ordered published
this 21st day of May, A.D 1991, and to be presented for final passage on the 4th
day of June, A.D. 1991 .
M (V � J
ATTEST:
City CleNC
Passed and adopted on final reading this 4th day of June A.D. 1991 .
Ma or
ATTEST:
City Clerk