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.
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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.
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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
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