HomeMy WebLinkAbout1990-174-12/04/1990-CONVERSION OPTION FIRE FIGHTERS PENSION PLAN RESOLUTION 90 - 174
OF THE COUNCIL OF THE CITY OF FORT COLLINS
MAKING THE FINAL DETERMINATION TO CARRY OUT THE
CONVERSION OPTION IN THE CITY OF FORT COLLINS
FIRE FIGHTERS PENSION PLAN
WHEREAS, the Council amended the City of Fort Collins Fire Fighters Pension
Plan ("City Defined Benefit Plan") by Resolution 90-41 on March 20, 1990, to add
Article XVI; and
WHEREAS, Article XVI allows each member of the City Defined Benefit Plan,
subject to this final determination by the City, to exercise the option of
converting from this plan to a money purchase pension plan adopted by Poudre Fire
Authority; and
WHEREAS, Council also passed a second resolution, Resolution 90-125
extending the date for members to exercise this conversion option from June 15,
1990, to October 18, 1990; and
WHEREAS, each of the 32 active (not yet retired) members of the City
Defined Benefit Plan has executed a written Waiver and Release, indicating a
desire to transfer from this plan into a money purchase pension plan; and
WHEREAS, Article XVI specifies a method for calculating the amounts due
each member and authorizes transfer of such funds after the following events have
occurred:
a. The money purchase plan for the benefit of Employees hired before
April 8, 1978, has been formally adopted by Poudre Fire Authority;
and
b. The City has received a favorable determination for this plan
amendment under the Internal Revenue Code; and
C. The City has made its final determination and authorized the transfer
of the funds.
WHEREAS, the Poudre Fire Authority adopted the "Money Purchase Pension Plan
and Trust Agreement of Poudre Fire Authority (Old Hire-City)" on October 23,
1990; and
WHEREAS, the transfer of the funds has been authorized in the City's 1990
budget; and
WHEREAS, the Council must take final action, within ninety (90) days after
the October 18, 1990 deadline, to determine whether to carry out the terms of
the conversion option and is under no obligation to do so; and
WHEREAS, the actuarial consultant for the City Defined Benefit Plan has
calculated the approximate amount of the liability which that plan will retain
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in order to provide continuing benefits to the existing retired and disabled
members and their beneficiaries; and
WHEREAS, the conversion by the 32 active members into a money purchase
plan will prevent .any additional accumulation of unfunded liability on their
behalves and, according to the actuarial. calculations, will reduce the amount
of the existing unfunded liability associated with the City Defined Benefit Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS
that the terms of the conversion option, Article XVI, City of Fort Collins Fire
Fighters Pension Plan are hereby confirmed.
Passed and adopted at a regular meeting of the Council of the City of Fort
Collins held this 4th day of December, A.D. 1990.
v�Tl� T�Ai7�l(�
Mayor
ATTEST:
City Clerk
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