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HomeMy WebLinkAbout1995-101-07/18/1995-DEATH BENEFITS GENERAL EMPLOYEES RETIREMENT DATES RETIREMENT PLAN RESOLUTION NO. 95-101 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING THE CITY OF FORT COLLINS GENERAL EMPLOYEES RETIREMENT PLAN REGARDING DEATH BENEFITS WHEREAS, the terms of the City for Fort Collins General Employees Retirement Plan (as restated and effective January 1, 1992) ("the Plan") have been revised by its Retirement Committee ("the Committee"); and WHEREAS, it is proposed that Article VIH, Death Benefits, Section I of the Plan be amended in order to fully incorporate the Committee's original intent which was to provide more equitable death benefits to married and unmarried members of the Plan; and WHEREAS, it-is-further-proposed thatArticle V, Retirement Dates, Section of the Plan be amended to change the service requirement from six years to two years; and WHEREAS,the Committee is recommending these amendments to the Council for adoption; and WHEREAS, the City Council wishes to adopt the recommendation of the 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 1, 1995, Article VIII, Section I of the City of Fort Collins General Retirement Plan(hereinafter"the Plan"),entitled Death Benefits,be amended to read as follows: "Section 1. Death of An Active Member. a Disabled Member or a Vested Member Prior to Normal Retirement Date. In the event that a Member who is actively employed in Covered Employment or a Disabled Member dies prior to the commencement of his or her Retirement Benefit, a single sum death benefit will be paid to the Member's beneficiary. The single sum death benefit will be determined such that it is equal to 47% of the actuarial equivalent value of the life annuity benefit which would have been paid had the Member separated from service at the earlier of the actual time of separation or death, survived until the earliest retirement age (or date of death, if later) and retired with a life annuity. If the beneficiary is the Member's spouse, the spouse may elect a monthly benefit which is the actuarial equivalent of the single sum death benefit. The monthly benefit to the surviving spouse shall commence on the last day of the month following-the later of the Member s_55th birthday or the Member's date of death and be payable for the spouse's life. If the participant was not married at the time of death, the beneficiary will receive the single sum death benefit. If no beneficiary exists, the estate will receive the single sum death benefit. "The actuarial equivalence for the single sum death benefit will be determined by using the interest rate specified in section 2.b.(I)of the Plan and the mortality assumption specified in section 2.b.(3) of the Plan. "In the event that a Vested Member who became such after January 1, 1994, and,thus,accrued Credited Service after December 31, 1993, dies prior to prior to commencement of his or her Retirement Benefit, a death benefit will be paid. This death benefit shall be paid as set forth in the first paragraph of this section. Death benefits, if any, payable to any Vested Member who became such prior to January 1, 1994 and did not accrue any Credited Service after December 31, 1993 shall be determined in accordance with the provisions of the Plan as of the date the Member ceased to be in Covered Employment." Section 2. That effective August 1, 1995, Article VIII, Section 2 of the Plan shall be deleted. Section 3. That effective August 1, 1995,Article V, Section 2 of the Plan, which defines the requirements for the Early Retirement Date, shall be amended to read in its entirety as follows: "Section 2. Early Retirement. A Member or Vested Member who has attained the age of 55 years and has completed at least two years of Credited Service may elect to retire as of the first day of any calendar month, which shall not be less than 30 nor more than 90 days after the filing of written notification with the Retirement Committee." 2 Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this 18th day of July, A.D., 1995. Mayor ATTEST: City Clerk 3