HomeMy WebLinkAbout2008-130-12/16/2008-ADOPTING THE SEVENTH AMENDMENT TO THE CITYS GENERAL EMPLOYEES RETIREMENT PLAN AS AMENDED AND RESTATE RESOLUTION 2008-130
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING THE SEVENTH AMENDMENT TO THE CITY OF FORT COLLINS
GENERAL EMPLOYEES' RETIREMENT PLAN
AS AMENDED AND RESTATED DECEMBER 31, 2001
WHEREAS,the City adopted,effective January 1, 1971,a qualified defined benefit pension
plan known as the City of Fort Collins Employees' Retirement Plan(the "Plan"),for the purpose of
providing retirement benefits for certain of its employees; and
WHEREAS, the City has amended the Plan from time to time and restated the Plan to
incorporate all prior amendments and other changes required by law effective December 31, 2001;
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, the second
amendment to the 2001 Restated Plan effective January 1, 2002, via the adoption of Resolution
2002-103, the third amendment to the 2001 Restated Plan effective July 1, 2003, via the adoption
of Resolution 2003-078, the fourth amendment to the 2001 Restated Plan effective April 10, 2006,
via the adoption of Resolution 2006-029, the fifth amendment to the 2001 Restated Plan effective
March 20, 2007, via the adoption of Resolution 2007-029, and the sixth amendment to the 2001
Restated Plan generally effective January 1, 2008, via the adoption of Resolution 2008-007; and
WHEREAS,the Retirement Committee("the Committee")has recommended to City Council
a seventh amendment to the 2001 Restated Plan to incorporate mandatory technical tax law changes
from the final Treasury Regulations under Internal Revenue Code Section 415,effective January 1,
2008; 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 January 1, 2008, Section 1 of Article XVI of the City of Fort
Collins General Employees' Retirement Plan is amended to read as follows:
Section 1. Limitation of Benefits.Notwithstanding any other provision
contained herein to the contrary, the benefits payable to a Member from this Plan
provided by City contributions shall be subject to the limitations of Code Section
415 in accordance with subparagraphs a. through e. below:
a. Any annual Pension payable to a Member hereunder shall not exceed the
"defined benefit dollar limitation" under IRS Code Section 415(b), which is
$160,000,as adjusted under IRS Code Section 415(d)in such manner as the Treasury
Secretary shall prescribe, and payable in the form of a straight life annuity.
b. Determining Limitation if Benefit Not Single Life Annuity: If the form of
benefit is other than a single life annuity, such form must be adjusted to an
Actuarially Equivalent single life annuity.For Limitation Years beginning on or after
July 1, 2007:
1. The Actuarial Equivalent of a Plan benefit payable in a form not
subject to Code Section 417(e)(3) means the actuarially equivalent straight life
annuity equal to the greater of the annual amount of the straight life annuity payable
to the Member under the Plan commencing on the same date as the Member's form
of benefit and the annual amount of the straight life annuity commencing on the same
date that has the same actuarial present value as the Member's form of benefit,
computed using a five percent (5%) interest rate assumption and the mortality
assumption set forth in Section 2.b. of Article 11.
2. The Actuarial Equivalent of a Plan benefit payable in a form subject
to Code Section 417(e)(3)means the actuarially equivalent straight life annuity equal
to the greater of the benefit computed using the Plan's interest rate and mortality
table used for Actuarial Equivalence for the particular form of benefit payable to the
Member on the benefit commencement date and the benefit computed using a five
and one-half percent (5.5%) interest rate assumption and the mortality assumption
set forth in Section 2.b. of Article II, commencing at the same date. For Plan Years
beginning after December 31, 2005, the Actuarial Equivalent of a Plan benefit
payable in a form subject to Code Section 417(e)(3)means the actuarially equivalent
straight life annuity payable on the Member's benefit commencement date equal to
the benefit computed using the mortality assumption set forth in Section 2.b. of
Article II and an interest rate assumption that is the greatest of:
i. Five and one-half percent(5.5%);
ii. the rate that provides a benefit that is not more than one hundred five
percent(105%)of the benefit that would be provided if the"applicable interest rate"
under Code Section 417(e)(3) were the interest rate assumption; or
iii. the rate used for Actuarial Equivalence for the particular form of
benefit payable.
No adjustment is required for the following: qualified joint and survivor
annuity benefits;pre-retirement disability benefits;pre-retirement death benefits;and
post-retirement medical benefits.
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C. The maximum annual Pension shall be adjusted when required, as provided
in paragraph 1. below, and if applicable, 2. or 3. below).
1. Adjustment for Less than Ten(10) Years of Service or Participation
If the Member has fewer than ten(10)years of participation in the Plan,the defined
benefit dollar limitation shall be multiplied by a fraction,(i)the numerator of which
is the number of years (or part thereof) of participation in the Plan and (ii) the
denominator of which is ten (10). If the Member has fewer than ten (10) years of
service with the Employer, the defined benefit compensation limitation shall be
multiplied by a fraction, (i)the numerator of which is the number of years (or part
thereof)of service with the Employer and(ii)the denominator of which is ten(10).
The provisions of this subparagraph 1. shall not apply to distributions made on
account of a Member's Disability or Death.
2. Payment Beginning before Age 62. If payment to a Member
commences before the Member attains age sixty-two(62),the defined benefit dollar
limitation applicable to the Member at such earlier age is an annual benefit payable
in the form of a straight life annuity beginning at the earlier age that is the Actuarial
Equivalent of the defined benefit dollar limitation applicable to the Member at age
sixty-two (62)(adjusted under paragraph 1. above,if required). The defined benefit
dollar limitation applicable at an age before age sixty-two (62) is determined as the
lesser of (i) the Actuarial Equivalent (at such age) of the defined benefit dollar
limitation computed using the interest rate and mortality table specified in Section
b. of Article 11 of the Plan, and (ii) the Actuarial Equivalent (at such age) of the
defined benefit dollar limitation computed using a 5%interest rate and the mortality
table specified in Section b.(3)of Article II of the Plan. Any decrease in the defined
benefit dollar limitation determined in accordance with this paragraph (b) shall not
reflect a mortality decrement if benefits are not forfeited upon the death of the
Member. If any benefits are forfeited upon death, the full mortality decrement is
taken into account.
3. Payment Beginning After Age 65. If payment to a Member
commences after the Member attains age sixty-five (65), the defined benefit dollar
limitation applicable to the Member at the later age is the annual benefit payable in
the form of a straight life annuity beginning at the later age that is the Actuarial
Equivalent of the defined benefit dollar limitation applicable to the Member at age
sixty-five (65) (adjusted under paragraph 1. above, if required). The Actuarial
Equivalent of the defined benefit dollar limitation applicable at an age after age sixty-
five(65) is determined as the lesser of(i)the Actuarial Equivalent(at such age) of
the defined benefit dollar limitation computed using the interest rate and mortality
table specified in Section b. of Article II of the Plan,and(ii)the Actuarial Equivalent
(at such age) of the defined benefit dollar limitation computed using a 5% interest
rate and the mortality table specified in Section b.(3) of Article II of the Plan. For
these purposes, mortality between age sixty-five (65) and the age at which benefits
commence shall be ignored.
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(d) In no event shall a Member's maximum annual Pension allowable under this
Section be less than the annual amount of Pension (including Early Retirement
Benefits and qualified joint survivor annuity amounts)duly accrued by such Member
under IRS Code Section 415 limitations then in effect as of December 31, 1982
(disregarding any Plan changes or cost-of-living adjustments occurring after July 1,
1982, as to the 1982 accrued amount).
e. Aggregation of Employer Plans. In applying the limits of this Article XVI,
Section 1,all defined benefit plans sponsored by the Employer are treated as a single
plan. Benefits payable under any other plan with respect to a Member shall be
reduced to the extent possible before any reduction will be made in such Member's
benefits under this Plan, if necessary to observe these limits.
Section 2. All other terms and provisions of the Plan shall remain unchanged and in full
force and effect.
Passed and adopted at a regular meeting oAColl the Ci of Fort Collins is 16th
day of December A.D. 2008.
ATTEST:
City Clerk
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