HomeMy WebLinkAbout2003-078-06/17/2003-ADOPTING THE THIRD AMENDMENT TO THE CITY OF FORT COLLINS GENERAL EMPLOYEES RETIREMENT PLAN AS AMENDE RESOLUTION 2003-078
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING THE THIRD AMENDMENT TO
THE CITY OF FORT COLLINS GENERAL EMPLOYEES'
RETIREMENT PLAN AS AMENDED AND RESTATED
EFFECTIVE DECEMBER 31, 2001
WHEREAS,the City Council adopted,effective January 1, 1971,a qualified defined benefit
pension plan known as the City of Fort Collins General Employees' Retirement Plan (the "1971
Plan"), for the purpose of providing retirement benefits for certain of its employees; and
WHEREAS,the City Council has amended the 1971 Plan from time to time and restated the
1971 Plan to incorporate all prior amendments and other changes required by law, effective
December 31, 2001 (the "2001 Restated Plan"), via Section 1 of Resolution 2001-157; and
WHEREAS, the City Council adopted the first amendment to the 2001 Restated Plan
effective January 1, 2002, via the adoption of Section 2 of Resolution 2001-157; and
WHEREAS, the City Council adopted the second amendment to the 2001 Restated Plan
effective January 1, 2002, via the adoption of Resolution 2002-103; and
WHEREAS,the Retirement Committee("the Committee")has recommend to City Council
a third amendment to the 2001 Restated Plan to provide for the more equitable payment of benefits
to employee Members based upon the number of hours an employee works; and
WHEREAS, the City Council wishes to adopt the recommendation of the Committee; and
WHEREAS, Article XV, Modification or Termination of Plan, Section 2 of the 2001
Restated Plan, authorizes the City Council to amend the terms of the 2001 Restated Plan.
NOW,THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS, COLORADO as follows:
Section 1. That effective July 1,2003,Subsection n. of Section 2 of Article II of the City of
Fort Collins General Employees' Retirement Plan is amended to read as follows:
n. "Final Average Monthly Compensation" means 1/60th of a Member's total
Compensation during the 60 consecutive full calendar months of Credited
Service out of the last 120 calendar months of Credited Service, which will
produce the highest average monthly compensation. If a Member has less
than 60 consecutive full calendar months of Credited Service, the Final
Average Monthly Compensation shall be the average of the total
Compensation during all full calendar months of Credited Service. In the
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event that a Member has been employed on a part-time basis (less than an
annualized 2080 hours)during any portion of the period used to calculate the
Final Average Monthly Compensation and therefore has received less than
full-time Credited Service during that period, the Member's part-time
Compensation for that period of time shall be converted to its full time
equivalent for the purposes of calculating the Final Average Monthly
Compensation.
Section 2. That effective July 1, 2003, Section 1 of Article VI of the City of Fort Collins
General Employees' Retirement Plan is amended to read as follows:
Section 1. Credited Service. A Member's Credited Service shall be used
to determine their Accrued Benefit and eligibility for benefits under the Plan.
a. A Member's Credited Service is the elapsed time period from their
date of employment with the City, as an Employee, to their date of
termination of such employment, except as limited within this
Section. A Member shall receive`one year of Credited Service for
each full year the Member receives Compensation for 2080 hours of
Covered Employment. A Member who receives Compensation for
less than 2080 hours of Covered Employment in a year shall accrue
Credited Service on a pro rata basis based on the number of hours for
which Compensation is paid. For example, a Member who was a
part-time Employee and worked 520 hours for six months(half-time)
and 1040 hours for six months(full-time)in a year would receive.75
year of Credited Service for that year.
b. A Member shall also accrue Credited Service under the Plan for any
period of time during which the Member meets all of the following:
a.(1) is qualified for either:
(i)(a) a total Disability as defined in Article H, Section 2.,
Subsection j., Paragraphs 1, 2, or 3; or
(z)(b) a temporary total disability in the judgment of the
City's designated worker's compensation physician;
lr. (2) is receiving Disability Benefits; and
r(3) is not receiving any payment from this Plan.
C. A Member may also accrue Credited Service under the Plan for any
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period of time up to a maximum accrual of two (2) years during
which the Member meets all of the following:
(1) is qualified for a permanent partial disability in the judgment
of the City's designated worker's compensation physician,
administrative law judge or,if appealed,the court issuing the
final judgment;
b-(2) is not working as an Employee in Covered Employment;
e-(3) is receiving Disability Benefits; and
d:(4) is not receiving any payment from this Plan.
d. A Member who accrues Credited Service because of a Disability
pursuant to Subsections b.or c.,above,shall accrue Credited Service
at the pro rata rate based upon the number of hours for which
Compensation was paid as of the date of disablement.
e. In the event a Member receives a lump sum disability benefit
payment in lieu of ongoing payments, the period of accrual of
Credited Service shall be the period of entitlement which provided
the basis for calculation of the lump sum amount.
Section 3. That effective July 1, 2003, Section 4 of Article VI of the City of Fort Collins
General Employees' Retirement Plan is amended to read as follows:
Section 4. Miscellaneous. No period of Credited Service shall be
deemed to be increased or extended by overtime. Using the date of hire and
rsary date thereafter in determining all Credited Service,service for fraction-ai
years shall be aflowed on the basis of f ffi2th year for each f-affillonth of empfoylyient
as an Employee-.
Section 4. That effective July 1, 2003, Section 3 of Article VIII of the City of Fort Collins
General Employees' Retirement Plan is amended to read as follows:
Section 3. Disability Retirement. The Disability Retirement benefit of
a Member eligible therefore shall be their Accrued Benefit on the date their Benefit
commences,based on their annual rate of Compensation on their date of disablement,
and the Credited Service as defined in Article VI, Section 1, unless the Member's
disability ceases prior to age 65 (see Article VII, Section 4). In the event that a
Member was employed on a part-time basis (less than an annualized 2080 hours)at
the date of disablement and `therefore has received less than full-time Credited
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Service during that period,the Member's part-time Compensation shall be converted
to its full time equivalent for the purposes of calculating the annual rate of
Compensation at the time of disablement.
Section 5. That effective July 1, 2003, Section 6 of Article VIII of the City of Fort Collins
General Employees' Retirement Plan is amended to read as follows:
Section 6. Accrued Credits and Vested Benefits Under the Previous
Plan Preserved.
a. The restatement of the previous Plan by this Plan shall not operate to
exclude, diminish, limit or restrict the payment or continuation of the
payment of benefits accrued prior to the Effective Date of this Plan. The
amount and payment of any such previous Plan benefits, shall be continued
by the Funding Agent under the Funding Agreement forming a part of this
Plan, in the same manner, undiminished, preserved, and fully vested under
this Plan,except as provided in this Article VIII,Sections 6c,7, 8,9,and 10.
b. The eligibility for, and amount of, any benefit of any kind, payable
under this Plan to or for any person who was a Member of the previous Plan
and who became a Member of the January 1, 1992 restated Plan,as amended,
and as it is amended and restated December 31, 2001, and as it may be
amended and restated in the future,shall be determined under the provisions
of this Plan.
C. The methods of calculating Credited Service,Final Average Monthly
Compensation,and annual rate of Compensation for Disability,Retirement,
as amended effective July 1, 2003, shall be applied retroactively in order to
better align benefits with the contributions to the Plan based on the Member's
actual Compensation. However, this retroactive application shall not result
in a Member's benefit under the Plan being less than the benefit the Member
would have been eligible to receive if the Member had terminated
Employment on June'30, 2003,under the terms of the Plan then in effect.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this
17th day of June, A.D. 2003.
Mayor Pro Terd
ATTEST:
City Clerk
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