HomeMy WebLinkAbout1991-038A-03/19/1991-AMENDING FIREFIGHTERS PENSION PLAN RESOLUTION 91-38A
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING THE CITY OF FORT COLLINS
FIREFIGHTERS' PENSION PLAN
WHEREAS, on January 21, 1986, the Council adopted the City of Fort Collins
Firefighters' Pension Plan (as Restated January 1, 1986) , ("Plan") ; and
WHEREAS, the Plan document continued the provision of pension benefits
provided to City firefighters hired before April 8, 1978, which had previously
been documented through inclusion in the Code of the City of Fort Collins ;
WHEREAS, on March 20, 1990, the Plan was amended to include a conversion
option for its active members by Resolution 90-41 ; and
WHEREAS, Council wishes to further amend the conversion option to allow
funds to be transferred prior to obtaining the final determination as to the
qualified status of the Plan as amended on March 20, 1990; and
WHEREAS, certain amendments to the Plan are necessary to retain its
qualified status pursuant to the Internal Revenue Code (I .R.C. ) as a result of
I .R.C. changes since the adoption of the restated Plan; and
WHEREAS, further amendments are necessary to bring the Plan into compliance
with applicable state law concerning Qualified Domestic Relations Orders and to
reflect the fact that firefighters who cease participation under the Plan and
later return to work will be covered under the new hire's money purchase plan
(not the State's Fire and Police Pension Association ["FPPA"] , as occurred
previously) ; and
WHEREAS, the amendments included in this Resolution will not result in an
increase or decrease to the benefits of the active, retired or deferred vested
participants in the Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS
that the City of Fort Collins Firefighters' Pension Plan (as Restated January
1 , 1986) is hereby amended as follows:
Section 1 . The fifth paragraph of the Preamble of the Plan is hereby
amended as follows:
This restated Pension Plan is conditioned upon its
qualification under Section 401(a) of the Internal Revenue Code of
1954 as replaced by the Internal Revenue Code of 1986 and as further
amended from time to time.
Section 2. Section 1 .2(c) is hereby amended as follows:
NO Base Compensation: All pay received by the Participant for
Covered Employment, including performance incentive pay, but Base
Compensation shall not include compensation for overtime (or
compensation in lieu of overtime required under the Fair Labor
Standards Act) , holiday pay, longevity pay, or clothing allowance,
nor compensation imputed as a result of the Participant' s use of the
Employer's automobile. A Participant's Base Compensation shall
include any amounts deferred as to such Participant under Code
Section 457 or under Code Section 414(h) , except to the extent such
amounts would be excluded under the immediately preceding sentence.
Effective January 1, 1989, the amount of a Participant' s Base
Compensation for purposes of the Plan during any Plan year shall
not exceed Two Hundred Thousand Dollars ($200,000. ) , subject to
cost-of-living adjustments in accordance with Code Section 415(d) . "
Section 3. Section 1 .2(f) is hereby amended as follows:
f Code: The Internal Revenue Code of 1954 as replaced by the
Internal Revenue Code of 1986, and as further amended from time to
time. "
Section 4. Section 1 .2(j) is amended as follows:
"M Employee: Any person whose Covered Employment with the
City commenced prior to April 8, 1978, and who, on and after the
Effective Date, is receiving remuneration for Covered Employment or
would be receiving such remuneration except for a duly authorized
absence. For purposes of non-discrimination testing, effective
January 1, 1987, included as employees are leased employees within
the meaning of Code Section 414(n) (2) . "
Section 5. Section 3.2 is hereby amended as follows:
"If a Participant leaves Covered Employment, he will cease his
participation in this plan, and will not again become a Participant.
(Recommencement of Covered Employment results in coverage under a
statewide pension system under Title 31 , Article 30, Part 10 of the
Colorado Revised Statutes, or, effective January 1, 1988, coverage
under a money purchase pension plan maintained by Poudre. )
Section 6. Article V is hereby amended by inclusion of the following
additional provisions:
"5.6 Mandatory Distributions: Distribution must commence no
later than April 1 of the calendar year following either the year
in which an Employee attains age 70 1/2 or the year in which an
Employee retires, whichever occurs later.
"5.7 Post-Death Distribution: Notwithstanding any provision
herein to the contrary, where distributions did commence before
death, distributions must continue to be made at least as rapidly
as the deceased elected.
"Where distributions did not commence before death, benefits
shall be distributed within the five (5) year period following the
date of death unless (i ) a portion of benefits is payable to a
designated beneficiary and that portion will be distributed over the
life of the beneficiary and distributions commence no later than one
(1) year after the date of death; and/or (ii) a portion of the
benefits to be paid to the surviving spouse is distributed over the
life of, or a period not exceeding the life of, the spouse, and the
distributions commence no later than the date on which the Employee
would have attained age seventy and one-half (70 1/2) .
"Notwithstanding any provision in this Plan to the contrary, if
a Participant dies before his entire interest has been distributed
to him, or distributions have commenced to his surviving spouse and
such surviving spouse dies before his entire interest has been
distributed to such surviving spouse, his entire interest (or the
remaining part of such interest if distribution thereof has
commenced) will be distributed within five (5) years after his death
(or the death of his surviving spouse) . The preceding sentence
shall not apply if distribution has commenced and is payable over
a term certain which does not exceed the Participant's life
expectancy or the life expectancy of the Participant and the
Participant's spouse. "
Section 7. The final two paragraphs of Section 12. 1(a) are hereby amended
and numbered effective January 1 , 1987, as follows:
" (3) Except as provided in the following, which imposed
additional limitations on the amounts payable to Participants with
less than ten (10) years of Service, the foregoing limitations shall
not be applicable with respect to any Participant whose annual
Pension under this Plan and any other defined benefit plan
maintained by the Employer, is less than Ten Thousand Dollars
($10,000. ) and such Participant has not at any time participated in
any defined contribution plan (within the meaning of Section 415[k]
of the Code) maintained by the Employer.
" (4) In the event that a Participant has less than ten (10)
years of participation in this Plan and predecessor plans hereto,
the dollar limitation otherwise applicable under (1) above shall be
reduced by multiplying such limitation by a fraction, the numerator
of which is the number of such Participant's years of plan
participation (or part thereof) , but never less than one (1) and the
denominator of which is ten (10) . This paragraph shall , to the
extent required by the Secretary of the Treasury, be applied
separately to each change in benefit structure hereunder.
"(5) In the event that a Participant has been credited with less
than ten (10) years of Service, the percentage-of-average-earnings
limitation otherwise applicable under (2) above and the dollar
amount otherwise applicable under (3) above shall be reduced by
multiplying each by a fraction, the numerator of which is the
number of such Participant's years of Service (or part thereof) , but
never less than one (1) , and the denominator of which is ten (10) .
"(6) The limitations of this Section apply to a straight life
annuity with no ancillary benefits and to an annuity that
constitutes a qualified joint and survivor annuity, provided payment
begins between ages sixty-two (62) and sixty-five (65) . If payment
is in a different form, the amount thereof shall be adjusted to be
the Actuarial Equivalent of a single life annuity and the
limitations shall be applied to such adjusted amount. If payment
begins between ages fifty-five (55) and sixty-two (62) , the
limitation in (1) above shall be the greater of (i ) Seventy-five
Thousand Dollars ($75,000. ) and (ii) the Actuarial Equivalent of the
amount otherwise applicable under (1) above. If payment begins
before age fifty-five (55) , the limitation in (1) above shall be the
greater of (i ) the Actuarial Equivalent of Seventy-five Thousand
Dollars ($75,000.) and (ii) the Actuarial Equivalent of the amount
otherwise applicable under (1) above; provided further, however,
effective January 1, 1987, as to firefighters who are qualified
participants as defined in Code Section 415(b) (2) (H) in this Plan,
in no event shall such amount be reduced below Fifty Thousand
Dollars ($50,000) , adjusted for increases in the cost-of-living, as
prescribed by the Secretary of the Treasury or his delegate. If
payment begins after age sixty-five (65) , the limitation in (1)
above shall be the Actuarial Equivalent of such amount otherwise
applicable at age sixty-five (65) . The interest rate to be used in
determining Actuarial Equivalence shall be the rate specified in
Section 1 .2 hereof; however, the interest rate used in determining
an Actuarially Equivalent single life amount or an Actuarially
Equivalent pre-age sixty-two (62) amount shall not be less the five
percent (5%) and the interest rate used in determining an
Actuarially Equivalent post-age sixty-five (65) amount shall not be
greater than five percent (5%) . "
Section 8. Section 6. 1 is hereby amended as follows:
"6. 1 Normal Form of Pension -- Single Life: Unless Section 6.2
hereof is applicable, any pension accrued under Article V hereof
will be paid as a Single Life Pension. Under this form of pension,
monthly payments are made to the Participant during the remaining
life of the Participant. "
Section 9. Section 13.3 is hereby amended as follows:
"13.3 Nonalienation of Benefits: Benefits payable under this
Plan shall not be subject in any manner to anticipation, alienation,
sale, transfer, assignment, pledge, encumbrance, charge,
garnishment, execution, or levy of any kind, either voluntary or
involuntary, prior to being received by the person entitled to the
benefit under the terms of the Plan. Any attempt to anticipate,
alienate, sell , transfer, assign, pledge, encumber, charge or
otherwise dispose of any right to benefits payable hereunder shall
be void. The Trust Fund shall not in any manner be liable for, or
subject to, the debts, contracts, liabilities, engagements, or torts
of any person entitled to benefits hereunder. None of the unpaid
Plan benefits or Trust Assets shall be considered an asset of the
Member in the event of his insolvency or bankruptcy.
Section 10. Section 15.5 is hereby amended as follows:
"15.5 Aoolicable Law: All questions arising with respect to the
provisions of this Plan shall be determined by the application of
the laws of the State of Colorado, except to the extent such law is
preempted by Federal statute. This Plan is a governmental plan
under Section 414(d) of the Code and, as such, is not subject to the
requirements of the Employee Retirement Income Security Act of 1974,
29 U.S.C. Section 1001, et seq.
Section 11 . Section 16.3 is hereby amended as follows:
"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 made its final determination and
authorized the transfer of the funds. "
Passed and adopted at a regular meeting of the Council of the City of Fort
Collins held this 19th day of March, A.D. 1991 .
d�
Mayor
ATTEST:
l�
City Clerk