HomeMy WebLinkAbout1998-139-10/06/1998-AMENDING THE GENERAL EMPLOYEES RETIREMENT PLAN TO PROVIDE EARLY RETIREMENT PLAN AND SINGLE-SUM BENEF RESOLUTION 98-139
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING THE CITY OF FORT COLLINS' GENERAL
EMPLOYEES RETIREMENT PLAN TO PROVIDE EARLY
RETIREMENT AND SINGLE-SUM BENEFITS FOR
DISABLED VESTED MEMBERS
WHEREAS, the terms of the City of Fort Collins General Employees Retirement Plan (as
restated and effective January 1, 1992)(the"Plan") have been reviewed by the General Employees
Retirement Committee (the "Committee"); and
WHEREAS,the Committee has recommended to the City Council that portions of the Plan
be amended so as to provide the ability for early retirement and single-sum benefit payments to be
made to disabled vested members of the Plan who are no longer engaged in covered employment,
thereby increasing the portability and flexibility of pension benefits; and
WHEREAS,the proposed amendments to the Plan are not expected to increase the funding
requirements of the Plan as the proposed provision for the early retirement and single-sum payment
of benefits for disabled former employees are designed to have no adverse impact upon the funding
of the Plan; and
WHEREAS, the City Council wishes to adopt the recommendation of the Committee; and
WHEREAS, Article XIV, Modification or Termination of Plan, Section 2, of the Plan
authorizes the City 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 upon the adoption of this resolution, Section 4 of Article V of the
City of Fort Collins General Employees Retirement Plan shall be amended to read as follows:
Section 4. Disability Retirement. If a Member's Covered Employment
by the City terminates by reason of his or her Disability, he or she shall be eligible
for a Disability Benefit commencing on the first day of the month, coincident with
or next following his or her 65th birthday, or upon termination of his or her long-
term disability insurance benefits, if later.
Disability shall be considered to have ended if, prior to his or her 65th
birthday, the Member loses his or her qualification for Disability and is no longer
entitled to any additional Credited Service under Section 1 of Article IV for his or her
Disability. If Disability ceases prior to the Member's 65th birthday, no Disability
1
Benefits shall be paid to or for such member. If the Member's Disability ceases prior
to his or her 65th birthday (and if he or she is not reemployed by the City as an
Employee)and if he or she has met the requirements for an Early or Deferred Vested
Benefit pursuant to Articles V or IX on the date of his or her recovery from
Disability,he or she shall be entitled to receive a benefit equal in amount to the Early
or Deferred Vested Benefit to which he or she would have been entitled as of the
date of his or her recovery, considering his or her Final Average Monthly
Compensation at the date Disability commenced and his or her Credited Service on
the date of his or her recovery from Disability.
In lieu of accruing additional Credited Service pursuant to the provisions of
Article IV, Section 1,and in lieu of becoming eligible for a Disability Retirement or
any other benefits described in the Plan,a Member whose Covered Employment by
the City terminates by reason of his or her Disability may elect to receive an Early
Retirement Benefit if the Member is otherwise qualified for such benefit, even
though such Member remains Disabled. Such Early Retirement Benefit shall be
based on consideration of his or her Final Average Monthly Compensation as of the
date that his or her Disability commenced instead of the Annual Rate of
Compensation as of the date of disablement.
In lieu of accruing additional Credited Service pursuant to the provisions of
Article IV, Section 1,and in lieu of becoming eligible for a Disability Retirement or
any other benefits described in the Plan,a Member whose Covered Employment by
the City terminates by reason of his or her Disability may elect a single lump sum
benefit described in Article IX, Section 3, if the Member is otherwise qualified for
such benefit, even though such Member remains Disabled.
Section 2. That effective upon the adoption of this Resolution, Section 1 of Article IX of the
City of Fort Collins General Employees Retirement Plan shall be amended to read as follows:
Section 1. Coveraee. Benefits shall be paid to a Member under this
Article if his or her Covered Employment terminates for reasons other than
retirement or death.
2
Passed and adopted at a regular meeting of the Council ofIh-e-`city of Fort C s hel this
6th day of October, A.D. 1998.
,_ or ATTEST:
City Clerk
3