HomeMy WebLinkAbout1990-041-03/20/1990-AMENDING FIRE FIGHTERS PENSION PLAN RESOLUTION 90- 41
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING THE CITY OF FORT COLLINS
FIRE FIGHTERS PENSION PLAN
WHEREAS, fire fighters hired by the City prior to April 8, 1978,
have been members of the City of Fort Collins Fire Fighters Pension
Plan; and
WHEREAS, the Plan is a defined benefit plan; and
WHEREAS, Section 31-30-1003.3, C.R.S. , authorizes the City to
offer the active participants in the Plan the option of converting to
a money purchase plan; and
WHEREAS, the City Council desires to begin the process of
amending the Plan to offer such an option.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the City of Fort Collins Fire Fighters Pension Plan is
hereby amended by adding thereto a new Article XVI, which shall read
as follows:
ARTICLE XVI
Money Purchase Plan Retirement Option; Transfer of Funds
16. 1 Conversion Option:
Each current Employee shall , subject to final determination
by the City, have the option of converting from this plan to
a money purchase plan adopted by Poudre. The Employee's
decision to convert must be made in writing, on or before
June 15, 1990, and is irrevocable.
16.2 Waiver and Release Requirement:
On or before June 15, 1990, each current Employee who wishes
to exercise the option of converting to a money purchase
plan must sign a Waiver and Release, waiving all rights to a
defined benefit and releasing the City and Poudre from any
liability to the Employee or his/her beneficiaries for such
a defined benefit, or any claim based upon the conversion to
a money purchase plan. Failure to sign such Waiver and
Release shall be construed as the Employee's election to
remain in the defined benefit plan.
16.3 Transfer of Funds:
Each current Employee who chooses to exercise the option to
convert to a money purchase plan shall have his/her account
transferred to the money purchase plan adopted by Poudre for
the benefit of Employees hired before April 8, 1978, 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; and
B. The City has received a favorable determination for this
plan amendment under the Code; and
C. The City has made its final determination and authorized
the transfer of the funds.
16.4 Determination of Amounts for Transfer:
The amount transferred on behalf of each such Employee shall
be determined as follows:
The Participant's Account Balance, as defined in
the money purchase plan to be adopted by Poudre
for the benefit of Employees hired before April 8,
1978, shall be credited with the greater of the
two (2) amounts described below:
A. The total amount of the contributions, plus
earnings thereon, paid by the Employee to the
Plan through December 31, 1989; or
B. The present value of the accrued benefits of
the particular Employee under the Plan through
December 31, 1989.
16.5 Holding Account:
Amounts accumulated from Employer and Employee contributions
beginning January 1, 1990, shall be held by the City in an
interest bearing, holding account and shall be eligible for
transfer to the money purchase plan adopted by Poudre for
the benefit of employees hired before April 8, 1978, after
the events described in Section 16.3 hereof have occurred.
16.6 Final Determination:
Within ninety (90) days after the deadline for active
Participants to exercise the conversion option, the City
shall make the final determination as to whether to carry
out the terms of such option and shall be under no
obligation to do so.
Passed and adopted at a regular meeting of the Council of the
City of Fort Collins held this 20th day of Ma h, A.D. 1990.
ayor
ATTEST:
City Clerk