Loading...
HomeMy WebLinkAbout1993-185-12/07/1993-BREAKS IN SERVICE GENERAL EMPLOYEES RETIREMENT PLAN RESOLUTION 93-185 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING 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 (Amended and Restated Effective January 1, 1992) , hereinafter referred to as the "Plan, " have been reviewed by its Retirement Committee; and WHEREAS, the items identified for amendment generally include adding a Family and Medical Leave Act provision regarding a break in service; expanding the death benefit for current employee members and vested members; accelerating vesting for members who terminate before reaching normal retirement age; adding lump sum options for payment of death benefits to spouses and beneficiaries; and incorporating a federal tax law provision concerning rollover distributions; and WHEREAS, the Retirement Committee is recommending these amendments to the 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 Council to amend the terms of the Plan. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That, effective August 5, 1993, Article IV, Section 2 of the Plan, entitled Breaks in Service, be amended to read as follows: 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 (1) year. b. A formal leave of absence followed by reinstatement, reemployment or reappointment within thirty (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 ninety (90) days after the time when a discharge from such military service was first available to such Member. d. An unpaid leave of absence required under the Family Medical Leave Act of 1993. 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. Notwithstanding the preceding sentence, Credited Service shall include an unpaid leave of absence required under the Family Medical Leave Act of 1993, solely for vesting purposes under Section 2 of Article IX. 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, 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 January 1, 1992, who would be affected by this provision shall have until six (6) months after final adoption of the January 1, 1992, amendment and restatement to make the repayment, if any, and have his prior Credited Service restored. Section 2. That, effective January 1, 1994, the first sentence of Article VIII, Section 1 of the Plan, entitled Death of an Active Member. a Disabled Member or a Vested Member Prior to Normal Retirement Date, be amended to read as follows: In the event that a Member who is actively employed by the City or a disabled Member or a Vested Member whose employment has terminated dies prior to his Normal Retirement Date and prior to the commencement of his Retirement Benefit, a death benefit will be paid. Section 3. That, effective January 1, 1994, Article VIII, of the Plan, entitled Death Benefits, will be amended to add Sections 5 and 6 as follows: Section 5. Minimum Period Payment. If the amount of the monthly benefit payable to a spouse or Beneficiary is less than One Hundred Dollars ($100) , the Retirement Committee shall make Actuarially Equivalent benefit payments in a single sum. Section 6. Lump Sum Payment. Regardless of the amount of the monthly benefit payable to a spouse or Beneficiary, such spouse or Beneficiary may elect to receive Actuarial Equivalent benefit payments in a single sum. 2 Section 4. That, effective January 1, 1994, the first paragraph of Article IX, Section 2 of the Plan, entitled Six or More Years of Service, be amended to read as follows: Section 2. Two or More Years of Service. In the event a Member's employment terminates prior to his Normal Retirement Date, and he has two 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 2 0% 2 40% 3 60% 4 80% 5 or more 100% Such deferred Retirement Benefit shall be payable at the Vested Member's Normal Retirement Date. Section 5. That, effective January 1, 1993, the Plan will be amended to add Article XVII, entitled Direct Rollovers, as follows: Section 1 . Distributions Made On or After January 1 1993. This Section applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a Distributee's election under this Section, a Distributee may elect, at the time and in the manner prescribed by the Retirement Committee, to have any portion of an Eligible Rollover Distribution paid directly to an Eligible Retirement Plan specified by the Distributee in a direct rollover. Section 2. Definitions. a. "Direct Rollover" means a payment by the Plan to the Eligible Retirement Plan specified by the Distributee. b. "Distributee" means an Employee or former Employee. In addition the Employee's or former Employee's surviving spouse and the Employee's or former Employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Code Section 414(p) , are Distributees with regard to the interest of the spouse or former spouse. 3 c. "Eligible Retirement Plan" means an individual retirement account described in Code Section 408(a) , an individual retirement annuity described in Code Section 408(b) , an annuity described in Code Section 403(a) , or a qualified trust described in Code Section 401(a) , that accepts the Distributee's Eligible Rollover Distribution. However, in the case of an Eligible Rollover Distribution to the surviving spouse, an Eligible Retirement Plan is an individual retirement account or individual retirement annuity. d. "Eligible Rollover Distribution" means a distribution of all or any portion of the balance to the credit of the Distributee, except that an Eligible Rollover Distribution does not include: (i ) any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the Distributee or the joint lives (or joint life expectancies) of the Distributee and the Distributee's designated Beneficiary; or for a specified period of 10 years or more; (ii) any distribution to the extent such distribution is required under Code Section 401(a) (9) ; and (iii) the portion of any distribution that is not includible in gross income. Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this 7th day of December A.D. 1993. Mayor ATTEST: City Clerk 4