HomeMy WebLinkAbout2000-090-07/18/2000-AMENDING THE FIREFIGHTERS PENSION PLAN RESOLUTION 2000-90
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING THE CITY OF FORT COLLINS
FIREFIGHTERS' PENSION PLAN
WHEREAS, on January 21, 1986, the City Council adopted the City of Fort Collins
Firefighters' Pension Plan (as restated January 1, 1986) (the "Plan") for City of Fort Collins
firefighters hired before April 8, 1978; and
WHEREAS, in 1990, the City Council adopted an amendment to the Plan which allowed
active employee participants in the Plan the option of converting to a separate money purchase
pension plan; and
WHEREAS, in 1991, all active employee participants in the Plan chose to convert to a
separate money purchase pension plan,leaving only retired participants and beneficiaries in the Plan;
and
WHEREAS,the Board of Trustees of the Plan has recommended that the City Council amend
the Plan to provide a one-time cost of living benefit increase plus an annual cost of living increase
in the amount of 1%each subsequent year to the remaining retirees and beneficiaries of the Plan;to
utilize all of the assets of the Plan for the purchase of non-transferable annuities to fund all future
benefits payable under the Plan, including the cost of living benefit increase; and to then terminate
the Plan; and
WHEREAS,the Plan participants have voted unanimously to approve the one-time monthly
cost of living benefit increase and the annuitization of the Plan; and
WHEREAS, the proposed amendments to the Plan will increase the benefits to the Plan
retirees and beneficiaries without increasing the City's funding obligation; and
WHEREAS,Articles XIV and XV of Plan specifically authorize the City Council to amend
and terminate the Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS, COLORADO as follows:
Section 1. That the City of Fort Collins Firefighters' Pension Plan is hereby amended by
adding thereto a new Article XVII, which shall read as follows:
1
ARTICLE XVII
Cost of Living Benefit
17.1 One-Time Cost of Living Benefit: Upon the annuitization of the
Plan as described in Article XVIII,the monthly benefit of each retired Participant and
beneficiary who is then receiving a monthly pension benefit under the Plan shall be
increased by $150.00 plus an amount equal to the product of the recipient's current
monthly benefit amount and 10%of the cumulative yearly inflation,as measured by
the Denver/Boulder Consumer Price Index, from the year in which the recipient
began receiving the Plan's monthly pension benefit through 1998.
17.2 Annual Cost of Living Benefit: Providing the annuitization of
the Plan as described in Article XVIII occurs, the monthly benefit of each retired
Participant and beneficiary who is then receiving a monthly pension benefit under the
Plan shall be increased by 1% per year beginning one year from the date of
annuitization or September 1, 2001, whichever is later.
17.3 Contingency: The cost of living benefits described in subsections
17.1 and 17.2 shall not be implemented unless and until the annuitization of the Plan
occurs as described in Article XVIII of this Plan. In the event that the annuitization
of the Plan as set forth in Article XVIII is determined to be invalid by a court of
competent jurisdiction after the cost of living benefits described in subsections 17.1
and 17.2 are implemented, such cost of living benefits shall be terminated.
Section 2. That the City of Fort Collins Firefighters' Pension Plan is hereby amended by
adding thereto a new Article XVIII, which shall read as follows:
ARTICLE XVIII
Annuitization and Termination of the Plan
18.1 Providing the assets of the Plan are sufficient, the City's Finance
Director shall use reasonable effort to purchase non-transferable annuities in an
amount sufficient to pay the required benefits, including the cost of living benefits
described in subsections 17.1 and 17.2, to those persons who continue to receive
benefits from the Plan. The annuities shall be purchased only from insurance
companies rated at least A+ by the A.M. Best company or rated at least AA by
Standard & Poors Corporation. If there is a default on the payment of benefits
resulting from an annuity purchased under this subsection, the City shall remain
liable to make any required benefit payments to persons for whom the annuities were
purchased.
2
18.2 In the event that all assets of the Plan are not exhausted to purchase
the annuities described in subsection 18.1,the remaining assets of the Plan shall be
used to purchase or enhance annuities to increase the cost of living benefit described
in subsection 17.1 by increasing the 10% of cumulative yearly inflation factor set
forth in subsection 17.1 until all assets of the Plan are exhausted. In no event shall
any assets of the Plan be returnable to the City except as set forth in subsection 15.4.
18.3 Termination of Plan: Upon the annuitization of the Plan as set forth
in subsections 18.1 and 18.2, the Plan shall be terminated.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins held
the I8th day of July, A.D. 2000.
Mayor
ATTEST:
City Clerk - 07"e- /a Y
3