HomeMy WebLinkAbout2007-049-05/15/2007-ADOPTING A 401A MONEY PURCHASE RETIREMENT PLAN AND A 457 DEFERRED COMPENSATION PLAN FOR THE CITY MAN RESOLUTION 2007-049
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING A 401A MONEY PURCHASE RETIREMENT PLAN
AND A 457 DEFERRED COMPENSATION PLAN FOR THE
CITY MANAGER, CITY ATTORNEY AND MUNICIPAL JUDGE
WHEREAS,the City of Fort Collins(City)has previously established the Service Directors
Plan ("401 Plan"), a qualified 401A money purchase retirement plan administered by the
International City Management Association Retirement Corporation ("ICMA-RC") for those
employees who report directly to the City Council and for certain other high level management
employees; and
WHEREAS,the City has previously established the 457 Deferred Compensation Plan("457
Plan") administered by ICMA-RC for those employees who report directly to the City Council and
for classified and unclassified management employees; and
WHEREAS,pursuant to the provisions of section 2-567 of the City Code,the City Manager
has the authority to establish benefits,including retirement plans,forboth classified and unclassified
employees of the City, but not for the City Manager, City Attorney, and Municipal Judge, since
these employees report directly to City Council and have separate employment agreements with City
Council; and
WHEREAS, combining within a single retirement plan and deferred compensation plan
employees who report directly to City Council and those who report to the City Manager is
administratively confusing and does not recognize the separate authority between the City Council
and the City Manager with regard to establishment of benefits; and
WHEREAS,placing the City Manager,City Attorney, and Municipal Judge into a separate
401 Plan and a separate 457 Plan from those employees who report to the City Manager will remove
the administrative confusion in administering benefits for the employees of the City Council; and
WHEREAS,ICMA-RC has recommended that certain changes be made to both the 401 and
457 Plans in order to take advantage of recent changes in federal law and to more effectively
administer the Plans; and
WHEREAS, the adoption of the Plans as described herein and as offered by ICMA-RC,
including the change in employee contribution requested by the City Manager,will not result in an
increased financial burden to the City; and
WHEREAS,the contribution rates for the Plans are set forth in the employment agreements
for the City Manager, City Attorney, and Municipal Judge,and the adoption of these Plans will not
alter those contribution rates.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS, COLORADO:
Section 1. That the Mayor is hereby authorized to execute on behalf of the City the ICMA
Retirement Corporation Governmental Money Purchase Plan and Trust Adoption Agreement for the
Council Employees'Plan, a copy of which is on file with the City Clerk's Office.
Section 2. That the Mayor is hereby authorized to execute on behalf of the City the ICMA
Retirement Corporation Governmental Deferred Compensation Plan and Trust Affirmative
Statement for the Council Employees'Plan, a copy of which is on file with the City Clerk's Office.
Section 3. That the assets of the Plans shall continue to be held in trust,with the City serving
as trustee, for the exclusive benefit of the Plans' participants and their beneficiaries, and the assets
shall not be diverted to any other purpose.
Passed and adopted at a regular meeting of the Cou of the City of Fort Col 'ns this I Sth
day of May, A.D. 2007.
May
ATTEST:
A
City Clerk