HomeMy WebLinkAbout1998-137-10/06/1998-APPROVING AMENDMENT OF THE ELIGIBILITY AND CONTRIBUTION PROVISIONS OF CERTAIN EMPLOYEE PENSION PLANS RESOLUTION 98-137
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING THE AMENDMENT OF THE ELIGIBILITY
AND CONTRIBUTION PROVISIONS OF CERTAIN
EMPLOYEE PENSION PLANS
WHEREAS, the General Employees Retirement Committee of the City of Fort Collins
(GERC)has recommended to the City Council, and the City Council has approved,an amendment
to the defined benefit General Employees Retirement Plan(GERP)which will allow members of the
GERP to elect to convert and transfer assets of the GERP to a money purchase pension plan as
designated by the City; and
WHEREAS, the City Council believes that it is in the best interests of the City and its
transferring employees to allow the conversion and transfer of assets to currently existing money
purchase pension plans administered by the International City Management Association Retirement
Corporation (ICMA); and
WHEREAS,the City Council believes that it is in the best interests of the City to provide a
money purchase pension plan to newly hired classified employees instead of a defined benefit
pension plan, such as the GERP.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That those employees converting and transferring assets from the GERP pursuant
to the GERP amendments previously approved by the City Council shall have their GERP assets
transferred to that currently existing ICMA-administered,401(a)qualified,money purchase pension
plan which is deemed applicable by the City based upon each employee's employment category.
Beginning on January 1, 1999 (or date of conversion, if later), in lieu of contributing an amount to
the GERP on behalf of the said transferring employees, the City shall contribute an amount equal
to 4.5% of each employee's Earnings to the employee's money purchase plan account. This
percentage payment shall be in addition to any percentage already being contributed by the City to
the employee's money purchase plan account.
Section 2. That in lieu of participation in the GLRP, all classified employees of the City
hired after December 31, 1998, who are not eligible for participation in the City's police pension
plan,shall participate in the currently existing ICMA-administered,401(a)qualified,money purchase
pension plan for classified employees upon completion of a Period of Service of six (6) months.
Upon completion ofthe Period of Service,the City shal I commence contributing a total of an amount
equal to 7.5%of such employee's Earnings to the employee's plan account. Of this total percentage
of City contribution, 4.5% is intended as a replacement for the City's GERP contribution, which
approximate percentage had been contributed by the City to the GERP for this employee category
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prior to January 1, 1999. Each such employee shall be required to contribute 3%of Earnings to the
employee's plan account.
Section 3. That to implement the provisions of sections 1 and 2 of this Resolution,the City
Manager is hereby authorized to execute on behalf of the City of Fort Collins the amended Adoption
Agreements for each of the affected money purchase pension plans.
Section 4. That to increase the efficiency of administering the City's several existing ICMA-
administered, 401(a) qualified, money purchase pension plans for non-police employees, the City
Manager is hereby authorized to execute on behalf of the City of Fort Collins, those documents
necessary to merge two or more of such plans providing that the employee participants of such
merged plans are not adversely affected by the merger.
Passed and adopted at a regular meeting of the Council of the of Fort Collins held this
6th day of October, A.D. 1998.
�-�aayor
ATTEST:
City Clerk ,
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